Securities code: 002196 securities abbreviation: Zhejiang Founder Motor Co.Ltd(002196) Announcement No.: 2022-012 Zhejiang Founder Motor Co.Ltd(002196)
About Zhejiang Xingjian Industry Development Co., Ltd
Announcement on signing the lease contract and related party transactions
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Zhejiang Founder Motor Co.Ltd(002196) (hereinafter referred to as “the company” or “the company”) held the 15th meeting of the seventh board of directors of the company on January 25, 2022. The meeting deliberated and approved the proposal on the signing of lease contract and related party transactions by the company, and agreed that the company leased the plant from Zhejiang Xingjian Industry Development Co., Ltd. as the place for the implementation of raised investment projects.
1、 Summary of lease contract
(I) contract subject and signing time
Party A: Zhejiang Founder Motor Co.Ltd(002196)
Party B: Zhejiang Xingjian Industrial Development Co., Ltd
Signed on: January 25, 2022
(II) plant location
The leased plant is located in the industrial plot d-28-2 of qibaiyang in Nancheng, Lishui.
The status of the lease object is: under construction.
(III) lease term
From June 1, 2022 (tentative, the starting date is finally calculated from the date when Party B actually delivers the plant and passes the acceptance of Party A) to December 31, 2036.
(IV) leased area and rent payment
1. Party A intends to lease to Party B a plant of not less than 90000.00 square meters (the actual area of the property right certificate after completion acceptance shall prevail) for production and operation, and the rent per square meter of construction area per month shall be paid to the people
Currency including tax: 15.5 yuan only. The monthly rent is one million three hundred and ninety five thousand yuan only (￥ 1395000.00), and the total annual rent is sixteen million seven hundred and forty thousand yuan only (￥ 16740000.00).
2. The rent shall be paid before use. Once Party A and Party B sign the contract, the rent shall be paid quarterly. After the contract is signed, the rent in the first quarter shall be paid. Thereafter, the specific payment date is before the 10th day of the first month of each quarter.
3. Rent payment method: bank transfer.
(IV) related expenses
During the lease term, Party A shall bear the gas fee, water and electricity fee, telephone fee, cable TV fee and network use fee required by Party A for normal work and life.
(V) plant repair
1. During the lease term, Party B shall be responsible for the normal maintenance of the plant, and the maintenance fee shall be borne by Party B. Party B guarantees that the plant can meet the needs of Party A’s normal use.
2. During the lease term, in case of natural damage to the plant not caused by Party A, or water leakage of the house, which affects the normal use of Party A. Party B shall repair it within 7 days after receiving the notice from Party A. if it exceeds 7 days, Party A has the right to repair it by itself, and the expenses incurred shall be borne by Party B. In case of damage caused by Party A, Party A shall compensate according to the price.
3. During the lease term, if the plant is in danger of dumping, or otherwise seriously hinders the use of Party A, or threatens the safety of Party A’s life and property, Party B shall immediately repair or make emergency remedies after receiving the notice from Party A. if Party B neglects or ignores it, or takes ineffective maintenance measures, Party A can cancel the lease or repair on behalf of Party B.
(VI) rights and obligations of Party A
1. During the lease term, it shall enjoy the legal right to use the leased subject matter in accordance with the provisions of this contract.
2. Party A shall pay the rent as agreed in this contract. If Party A refuses without justified reasons, Party A shall not be liable for delay in paying the rent.
3. Party A shall be responsible for the safety management of production safety, fire safety and security within the lease scope, operate in strict accordance with the requirements of relevant national laws and regulations, and bear relevant responsibilities. 4. During the validity of the contract, the production and operation shall be carried out according to the purpose of the House agreed in the contract. Without the written consent of Party B, the house shall not be sublet, lent, mortgaged or used for other purposes beyond the scope agreed in the contract.
5. If Party A wants to continue the lease at the expiration of the lease, it shall notify Party B in writing 30 days before the expiration of the lease, and both parties shall negotiate to re conclude the lease contract. If Party A still wants to rent out after the expiration of the lease term, under the same conditions, Party A has the priority to rent.
(VII) rights and obligations of Party B
1. Collect rent according to the agreement.
2. Deliver the leased property to Party A for use on time, and ensure to truthfully explain and explain the situation of the plant and the surrounding situation to Party A, including the ownership of the plant, the number of plant maintenance, property management, public security, environment, etc., and truthfully answer Party A’s relevant inquiries.
3. Be responsible for coordinating the work of relevant parties to ensure the smooth flow of water and electricity (except for non-human and force majeure factors), and the implementation of water supply and drainage and power transformers shall meet the needs. The maintenance and replacement of all facilities in the later stage shall be paid by Party B.
(VIII) change, cancellation and termination of the contract
1. Both parties may change or terminate this contract through negotiation.
2. If Party B fails to provide the house as agreed in this contract, Party A has the right to terminate the contract.
3. During the lease term, if Party A commits any of the following acts, Party B has the right to terminate the contract and take back the leased property:
(1) Demolish, modify, change the structure of the house and change the purpose of the leased property without the written consent of Party B;
(2) The leased house is damaged and has not been repaired within the reasonable period proposed by Party B;
(4) Use the leased house to store dangerous goods or carry out illegal activities;
(5) The subject matter leased by Party B is sublet, lent, mortgaged, rented out in any name or cooperated with a third party in any way.
4. When the lease expires, the contract shall be terminated naturally.
5. If the contract cannot be performed due to force majeure, the contract shall be terminated.
(IX) dispute resolution
Any dispute arising from the performance of this Agreement shall be settled by both parties through negotiation. If the negotiation fails, it shall be brought to the local court where Party A is located.
(x) liability for breach of contract
1. Any party’s failure to perform any provision of this Agreement shall be deemed as breach of contract.
2. Either party shall confirm or raise written objection or supplementary explanation within 15 days after receiving the written notice specifying the breach of contract from the other party. If no written reply is given within 15 days, it shall be deemed that it has accepted the contents stated in the written notice. In this case, both parties shall negotiate on this issue. If the negotiation fails, it shall be settled in accordance with the dispute provisions of this agreement. The breaching party shall bear the economic losses caused to the observant party due to its own breach of contract.
2、 Documents for future reference
(I) Zhejiang Founder Motor Co.Ltd(002196) resolution of the 15th meeting of the seventh board of directors; (II) Zhejiang Founder Motor Co.Ltd(002196) resolution of the 9th meeting of the 7th board of supervisors;
(III) Zhejiang Founder Motor Co.Ltd(002196) prior approval opinions of independent directors on non-public offering of shares and other related matters
(IV) Zhejiang Founder Motor Co.Ltd(002196) independent directors’ independent opinions on non-public development of shares and other related matters of the company;
(V) Zhejiang Founder Motor Co.Ltd(002196) lease contract signed with Zhejiang Xingjian Industry Development Co., Ltd.
It is hereby announced.
Zhejiang Founder Motor Co.Ltd(002196) board of directors January 25, 2022
