Yile Industrial Park (Hangzhou, China) Leasing Contract of Factory Premises - Yile VIllage and UTStarcom (Hangzhou) Telecom Co. Ltd.
LEASING CONTRACT OF FACTORY PREMISES
Party A: Yile Village, Gudang Township (hereinafter referred to as
Party B: UTStarcom (Hangzhou) Telecom Co., Ltd. (hereinafter referred
to as Party B)
Party A and Party B reach the following agreement with regard to the
leasing of factory premises on the basis of equality and mutual benefit and
through friendly consultation:
1. Party B will lease from Party A the first, third and fourth
floors with an area of 2,282 M TO THE POWER OF 2, 2,757.8 M
TO THE POWER OF 2 and 2,757.8 M TO THE POWER OF 2,
respectively at No. 3 Building, Yile Industrial Park inside
the Yile Village having a total area of 7,797.6 M TO THE
POWER OF 2 at a monthly price of RMB14 YUAN per M TO THE
POWER OF 2 with an aggregated monthly rent of 109,166.40
YUAN and a aggregated yearly rent of 1,309,996.80 YUAN. The
lease is set for five (5) years from September 6, 1997 to
March 1, 2002. The rent shall remain unchanged for the
first three years, and, thereafter, it will increase
according to the price increase index. An adjustment will
be made every three (3) years.
2. Method of Payment: Party B shall pay Party A half a year's
rent within fifteen (15) days upon execution of this Contract.
After that, Party B shall make monthly payment for the rent of
a given month. It shall take the initiative to make onetime
payment at Party A's financial department on or prior to the
fifteenth day of every month. In case the rent is not paid on
time and the due date is over a month, the overdue fine shall
be 2% of the monthly rent per day. If it is overdue for more
than two (2) months, Party A has the right to take necessary
measures or unilaterally terminate this Contract and be
compensated by the breaching party for the liabilities.
3. Party A shall provide water for normal daily consumption, 450
kilowatts of electricity for industrial use and six
telephones. The cost for the water, electricity and telephones
shall be covered by Party B itself.
4. Under the premises of not adversely affecting the
infrastructure of the premises, Party A shall allow Party B to
make internal decoration and adjustments towards the leased
property, but Party B is required to submit a proposal for
such decoration and obtain Party's prior approval. If Party B
needs to renew the lease upon expiration of this Contract,
Party A shall give the priority to Party B.
5. During the leasing period, Party B shall bear the cost by
ratio of maintenance for public utilities and general
management of Building No. 3.
6. During the leasing period, Party B shall engage in lawful
operations, rigorously observe various regulations and
policies formulated by the central and local governments and
the various authorities concerned. In the meantime, it shall
pay taxes and management fees related to the enterprise
pursuant to the relevant provisions.
7. During the term of the Contract, the parties shall stand by
their rights and obligations set forth in the Contract. If any
party fails to implement its obligations and causes damages
toward the other party, it shall compensate for all of the
other party's claims.
8. If, due to some special circumstances, any party desires to
terminate the Contract prior to its expiration, it shall
notify the other party of such decision six (6) months ahead
of time. In case of amendment or termination of the Contract
due to force majeure, the parties shall hold discussion to
solve the problem.
9. Upon expiration of the leasing period, Party B shall have the
priority to renew the lease. The rent for the renewed lease
shall be decided by the parties through consultation based on
the price increase index.
10. This Contract shall become effective immediately upon
execution with legal interests. In case any dispute occurs
upon its validity, the parties shall take positive approach
trying to solve such dispute. If the parties fail to solve
such dispute by means of consultation, they may submit it to
the local economic arbitration organization or judicial organ
11. Matters that are not dealt with in this Contract shall be
discussed and solved through friendly consultation, and
supplementary agreements shall be signed.
12. This Contract has four (4) original copies with each party in
possession of two having equal legal power, which will
supervise the other party to carry out the Contract and
protect its own rights.
Party A: Party B:
Economic Cooperative of Yile Village, UTStarcom (Hangzhou) Telecom Co.,
Gudang Township Ltd.
(Official Seal) (Official Seal)
Date: December 15, 1996