NCTY » Topics » 10. Accountabilities for Breaching the Contract

This excerpt taken from the NCTY 20-F filed Jun 30, 2006.

10. Accountabilities for Breaching the Contract

10 – 1 In the case of the building with defects upon delivery, Party A should engage in repairs within     /     days of the delivery. If no repairs are performed in due time, Party A agrees to reduce the rent and amend related clauses concerning rents.

10 – 2 In the case that Party A fails to inform Party B that, before the lease, the building had been created as a mortgage or had restrictions on property rights transfer, thus causing damages to Party B, Party A is accountable for indemnity.

10 –3 During the lease term, in the case that Party A fails to perform duties for repairs and maintenance, thus causing damages to the building, losses to Party B’s assets or harms to human bodies, Party A is accountable for making a compensation therefor.

10 – 4 During the lease term, except for situations stipulated under the Contract, in the case that Party A terminates the Contract and takes back the building ahead of time, Party A should pay a breaching fee to Party B at     /     times of the daily rental fee for the number of days before term. In the case the breaching fee is not sufficient to cover the losses of Party B, Party A should further be accountable for paying compensation.

10 – 5 If Party B renovates or adds auxiliary facilities without Party A’s written consent or beyond the scope and requirements in Party A’s written consent, Party A can request Party B to         /     (restore the building to previous status/compensate for the losses).

 

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[English translation; for reference only]


 

10 – 6 During the lease term, except for stipulations under the Contract, if Party B breaches the lease ahead of term, Party B should pay Party A the penalty for breaching at     /     times of the daily rent for the number of days breached. If the breaching fee is not sufficient to cover Party A’s losses, Party B is further accountable. Party A can deduct from the security deposit. If that is not sufficient, Party B should pay the balance.

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