Violation Liabilities. 14.1 If Party B terminates this Contract in advance within the term, it shall inform Party A two months in advance and return the margin in double times and the rent for the rest term of this Contract (the rent of a term longer than four months is calculated based on four months) to Party A. Should Party A terminate this Contract in advance within the term, it shall inform Party B two months in advance and Party B will not refund the margin that Party A pays. In such case, Party A shall also be responsible for the rent of the rest terms within the validity of this Contract (the rent of a term longer than four months is calculated based on four months). 14.2 Party A shall pay Party B margin as per 5.1 and 5.2 of this Contract. Otherwise, Party A is seen as a breach of this Contract. In such case, Party B can terminate this Contract and rent it out to a third party without informing Party A in advance; refuse to refund Party A’s down payment and ask Party A for liquidated damages according to the total margin specified in 5.1 and 5.2 hereof. 14.3 Party A shall not refuse to pay or default in paying rent, management fees and other expenses with any cause. If Party A fails to pay the fees above within the time specified, it shall pay Party B liquidated damages which are 0.5% of total fees for each day overdue. Should Party A fail to pay the rent and other expenses for five days overdue as per this Contract, Party B will suspend providing services for it (including but not limited to water and electricity supply, door access, business service, article release, etc.) and all the consequences arising therefrom shall be borne by Party A. 14.4 If Party A involves any of the following cases within the term of lease: (1) Party A fails to pay rent and other expenses based on the time specified herein for seven days overdue; (2) Party A defaults in paying rent and other expenses for three times. Party A is seen as a serious breach of this Contract. Party B will terminate this Contract with Party A, confiscate Party A’s margin and may collect and rent out this Premise. Party A shall also be responsible for the rent of the rest terms within the validity of this Contract (the rent of a term longer than four months is calculated based on four months). If Party A does not dispose its office facilities and supplies left inside this Premise, it is seen as having waived the disposal and agreed Party B to dispose them. 14.5 In case that Party A terminates this Contract in advance or breaches this Contract within the term, it shall bear the rent for rent-free period. 14.6 Where Party A proposes to terminate this Contract or breaches this Contract within term, it shall pay the commission service fees/brokerage fees paid by Party B in advance as per 4.4. 14.7 If Party A breaches this Contract due to its failure in paying rent and management fees or this Contract cannot be performed any longer by Party A’s other behaviors, Party B can ask Party A to provide performance bond or detain Party A’s properties inside this Premise after Party A fails to effect payment in time or involves the behaviors above. If it is determined that this Contract cannot be performed any longer within five working days, Party B can terminate this Contract, confiscate the margin, exercise lien and investigate Party A’s violation behaviors. 14.8 If Party A involves any of the following cases within the term of lease: (1) Party A deals with illegal activities inside this Premise, impairing the public interests or others’ interests; (2) Party A changes the purpose of lease specified in this Contract at will; (3) Party A refuses to bear maintenance responsibilities or pay maintenance fees as per this Contract, leading to the damage of this Premise or facilities; (4) Party A decorates this Premise without Party A’s prior consent or changes its structure or involves other behaviors of destroying this Premise; (5) Party A subleases, lends, sublets or exchanges this Premise with others at will; (6) Party A saves hazardous objects such as inflammable and explosive articles or other prohibited substances in this Premise; (7) Other behaviors in violation of laws and this Contract. If Party A involves any of the behaviors above, Party B can terminate this Contract, confiscate the margin and ask Party A for compensating its loss arising therefrom. 14.9 Any fees paid by Party B for urging Party A’s payment of the rent and management fees or exercising any right under this Contract (including but not limited to attorney fees and legal fare, etc.) shall be borne by Party A.
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Sources: House Lease Contract (Hanjiao Group, Inc.), House Lease Contract (As Capital, Inc.)