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 Bs 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 As written consent or beyond the scope and requirements in Party As written consent, Party A can request Party B to / (restore the building to previous status/compensate for the losses).
[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 As 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.