To renew this contract, Party B should give Party A one month’s written notice. After Party A hasgiven its consent to the renewal proposal, the parties shall enter into a new lease contract.Party A shall have the right of first refusal to lease the House. Upon the expiry of thiscontract, if Party B does not move out of the House within three days, Party A shall have the rightto seal up the House.Article 6. TerminationThe parties cannot terminate this contract within its term unless there is a force majeure event ora situation that constitutes a cause for termination provided hereof. If Party A unilaterallyterminates this contract before its expiration, it should return the rental paid in advance and thedeposit to Party B, and it should also pay an amount equal to the deposit to Party B ascompensation. If Party B unilaterally terminates this contract before its expiration, it shalllose the right to claim return of the deposit.Article 7. Obligations of the PartiesParty A represents that it is the owner of the House or has the right to lease the House to PartyB. Party A shall hold Party B harmless from and against any claim or damage arising for the reasonthat Party A does not have the right to lease the House.Party A should deliver the House to Party B on the date of this contract.If any equipment or facility within the House is damaged or lost due to the reasons of Party B (orthe guests of Party B), Party B shall be liable for compensation.Party B shall in charge of the fire protection and security works for the House. Party B shouldget the consent of the property management company if it intends to add any energy consumingequipment within the House.Party B should keep the House and equipment thereof (including electricity card, keys, etc.)orderly and in good condition. Upon the expiry of this contract, Party B should return suchequipment in good condition to Party A.Party A entrusts the property management company of the House to provide property managementservice and necessary repair service to Party B. Party B should observe the policies of theproperty management company.Before moving into the House, Party A shall enter into the property maintenance and repairagreement with the property management company and pay property management fee on time.With proper notice, the staff of the property management company can enter into the House for thepurpose of performing their management functions with respect to sanitation, security, fireprotection, rescue, etc.,. In case of emergency, the staff of the property company, be accompaniedby the security guards of the House, can enter into
 

 
the House without advance notice to conduct necessary examination and take appropriate measures,provided that Party B shall be notified immediately afterwards.Party B’s decoration plan should be acceptable to Party A and be examined and approved by theproperty management company. The decoration shall be conducted under the supervision of theproperty management company.Article 8. Liabilities for Breach of ContractIf any party fails to perform the provisions of this contract, the other party shall notify suchparty in writing to fulfill its contract obligations. If the breaching party still fails toperform its obligations, the observing party shall be entitled to terminate this contract andrequire the breaching party to compensate it for the losses it has suffered for the termination.The specific rule is that 1) if Party A breaches any provision or appendix of this contract, itshould compensate Party B for any losses Party B has suffered; 2) if Party B breaches thiscontract, Party A is entitled to terminate this contract and withhold the deposit and rental paidby Party B in advance.If Party B subleases the House to a third party without getting the consent of Party A, Party Bshould pay Party A a liquidation damage in an amount equal to one month’s rental. In the eventthat the House is damaged during the sublease term, Party B shall be liable for compensation.Article 9. ExemptionParty A shall be exempted from liabilities for Party B’s losses caused by the occurrence of forcemajeure event.Article 10. Dispute ResolutionThis contract shall be construed and interpreted pursuant to the law of People’s Republic ofChina. Any dispute arising from and in connection with the performance of this contract should beresolved through negotiation. Should such negotiation fails, any party could submit the dispute tothe people’s court at the place where the House is located for litigation.Article 11. EffectivenessThis contract shall take effective after it has been signed by or affixed with the chops of theparties. There are two original copies of this contract, which have same effect. Each party shallhold one original copy.   Party A (chop): Party B (chop):   Date: May 16, 2008 Date: May 16, 2008