Common use of ANNUAL CAPS Clause in Contracts

ANNUAL CAPS. The maximum total amount of fees receivable by Gamma Star Tech from the Managed Hospitals under the Hospital Management and Operation Agreements for each of the three years ending December 31, 2020, 2021 and 2022 should not exceed the caps set out below: 2020 2021 (RMB in millions) 2022 Total amount of fees receivable Management Agreement Total amount of fees receivable 8.9 13.0 16.0 Agreement 23.3 24.6 27.1 Total amount of fees receivable 32.1 37.6 43.1 As the amount receivable under the Hospital Management Agreements are calculated based on the percentage of the revenue of the Managed Hospitals, the proposed annual caps are estimated primarily based on the expected growth of revenue of the Managed Hospitals. When estimating the expected revenue of Managed Hospitals, our Directors have taken into account primarily (i) the historical performance of the Managed Hospitals, (ii) the estimated increase in the service capacity and patient visits as a result of the upgrading and development plan of the Managed Hospitals, further investment in the oncology and hemodialysis departments and establishment of orthopedics department in the Managed Hospitals, and (iii) the expected time when Handan Zhaotian Hospital resumes operation. As the amount receivable under the Cooperation Agreements with Managed Hospitals are calculated based on the revenue generated by the Managed Hospitals directly from use of our proprietary SRT equipment, the proposed annual caps are estimated primarily based on the expected growth of revenue in relation to the radiotherapy treatment services of the Managed Hospitals. When estimating the expected revenue in relation to the radiotherapy treatment services of the Managed Hospitals, our Directors have taken into account primarily (i) the average spending per patient for radiotherapy treatment at the Managed Hospitals, (ii) the historical number of patients received for radiotherapy treatment and the estimated increase in such number of patients, and (iii) the expected time when Handan Zhaotian Hospital resumes operation. At the end of 2022, our Company will re-comply with the reporting, announcement and independent shareholders’ approval requirements under Chapter 14A of the Listing Rules, where and if applicable, including the requirements for the setting of new monetary annual caps for the maximum amount of fees receivable under the Hospital Management and Operation Agreements for an additional three-year period.

ANNUAL CAPS. The maximum total amount of fees receivable by Gamma Star Tech from the Managed Hospitals under the Hospital Management and Operation Agreements for each of the three years ending December 31, 2020, 2021 and 2022 should not exceed the caps set out below: 2020 2021 (RMB in millions) 2022 Total amount of fees receivable Management Agreement Total amount of fees receivable 8.9 13.0 16.0 Agreement 23.3 24.6 27.1 Total amount of fees receivable 32.1 37.6 43.1 As the amount receivable under the Hospital Management Agreements are calculated based on the percentage of the revenue of the Managed Hospitals, the proposed annual caps are estimated primarily based on the expected growth of revenue of the Managed Hospitals. When estimating the expected revenue of Managed Hospitals, our Directors have taken into account primarily (i) the historical performance of the Managed Hospitals, (ii) the estimated increase in the service capacity and patient visits as a result of the upgrading and development plan of the Managed Hospitals, further investment in the oncology and hemodialysis departments and establishment of orthopedics orthopedic department in the Managed Hospitals, and (iii) the expected time when Handan Zhaotian Hospital resumes operation. As the amount receivable under the Cooperation Agreements with Managed Hospitals are calculated based on the revenue generated by the Managed Hospitals directly from use of our proprietary SRT equipmentequipment and other radiotherapy equipment contributed by us, the proposed annual caps are estimated primarily based on the expected growth of revenue in relation to the radiotherapy treatment services of the Managed Hospitals. When estimating the expected revenue in relation to the radiotherapy treatment services of the Managed Hospitals, our Directors have taken into account primarily (i) the average spending per patient for radiotherapy treatment at the Managed Hospitals, (ii) the historical number of patients received for radiotherapy treatment and the estimated increase in such number of patients, and (iii) the expected time when Handan Zhaotian Hospital resumes operation. At the end of 2022, our Company will re-comply with the reporting, announcement and independent shareholders’ approval requirements under Chapter 14A of the Listing Rules, where and if applicable, including the requirements for the setting of new monetary annual caps for the maximum amount of fees receivable under the Hospital Management and Operation Agreements for an additional three-year period.