UT to announce the return of Hangzhou assets

U.S. Eastern Time February 5 17:11 (Beijing time February 6 6:11) News, UT Starkon (NASDAQ:UTSI) in the 8-k/a form submitted to the Securities and Exchange Commission, said the company has passed through China's wholly-owned subsidiary and the Sino-South Group signed a after-sale lease agreement. UT has reached an agreement with the central-South group to sell some of its assets in Hangzhou, China, at a price of 950 million yuan (about $140 million). Under the asset transfer agreement, this part of the asset is currently in the process of handover.　　UT and Zhongnan will add the terms of the sale-back lease to the asset transfer agreement. According to the terms of the lease, UT will return to rent the total floor area of 71027 square meters, as well as the total floor area of 12000 square meters of the underground area, the lease period of 6 years. Ground area, the first 1-2 years, 3-4 years, 5-6 years of rents are 2.5 yuan per square metre per day, 3.0 yuan and 3.2 yuan. Underground area, the rent for the entire lease period of 25 yuan per square metre a month.　　During the whole lease period, the property and air-conditioning charges are 6.5 yuan per square metre and 4.0 yuan each month respectively. According to the agreement, UT Kangda will pay for the next quarter of the rent and fees.　　In the first payment of rent on the same day, UT will pay a deposit of about 12.3 million yuan, and a total of 2.34 million yuan in advance of the last 6 months of the rent and fees. UT can terminate the lease agreement in advance of 6 months ' notice to the Zhongnan group. If the agreement is terminated in advance, the central-South Group will confiscate the deposit, UT Kangda also pay a fine of 17.7 million yuan, and in accordance with the current period of rent to the South China group to pay the equivalent of 6 months rent compensation. If the partial termination, then the fine and 6 months rent compensation will be paid proportionally. (D-Gold)