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**Article IV Lease Term**(1) The term of the lease is one year (i.e. 12 months), starting from January 1, 2009 toDecember 31, 2009.(2) If Party A breaches its obligation hereunder and terminates this Agreement before the endof the lease, Party A shall pay Party B which amount is equal to 3 months’ rent as compensation.If Party B breaches its obligation hereunder and terminates this Agreement before the end of thelease, Party B shall pay Party A which amount is equal to 3 months’ rent as compensation.(3) After the term of the lease, Party A may take back the leased premises. If Party B wishesto extend the term of lease, it shall notify Party A in writing 30 days before the term of leaseends. After Party A agrees with such extension of lease term, both parties shall execute a newlease agreement with respect to the extension.If Party A raises no objections to Party B’s continued use of the leased premises after theexpiration of the term of the lease, this Agreement continues to be effective and the lease shallbe deemed a non-term lease, under which each party shall have the right to terminate this Agreementat anytime by providing a 30-day written notice to the other party.**Article V. Rent**(1) Standard rate of rent: the standard rate of rent for the leased premises is RMB onemillion (RMB1,000,000) per year. The rent shall remain unchanged for one (1) year. After January,2010, both parties may negotiate on the adjustment of the rent and may enter into new agreement inthis regard.(2) Time and method of rent payment: Within 15 days after the signing of this Agreement,Party B shall transfer the rent into an account designate by Party A.**Article VI. Deposit of the Leased Premises**(1) At the delivery of the leased premises by Party A to Party B, Party B shall pay Party Athe lease deposit of RMB five thousands (RMB5,000).(2) After the expiration of the lease or termination of this Agreement, Party A shall, afterdeducting the rents, fees and compensation payment obligations which arise out of breach of thisAgreement borne by Party B, return the remaining amount of the lease deposit to Party B.
 
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**Article VII Other Fees and Expenses**During the term of lease, the relevant fees and expenses in connection with the leasedpremises shall be borne in accordance with the following:(1) Party B shall pay the fees in connection with water, electricity, telephone, cable TV, heatingand gas. Party B shall keep relevant receipts or invoices for such fees and expenses and make themavailable for Party A’s inspection.(2) Party B shall pay the applicable tax and fees in connection with the lease. Any other fees inconnection with the leased premises that have not been addressed in this Agreement shall by borneby Party B.**Article VIII Delivery and Return of the Leased Premises**(1) Delivery: Party A shall delivery the leased premises under the agreed conditions to PartyB before January 1, 2009. The delivery is deemed to occur after (a) both parties shall sign andaffix their corporate seals on the List of Ancillary Fixtures and Equipment of the Leased Premises,and (b) after Party A hands over the keys of the leased premises to Party B.(2) Return: After the expiration of the lease or termination of this Agreement, Party B shallreturn the leased premises with ancillary fixtures. After inspection of the leased premises, bothparties shall sign and affix their corporate seals on the List of Ancillary Fixtures and Equipmentof the Leased Premises. Both parties shall settle the relevant fees and expenses in connectionwith the leased premises.Any objects added by Party B may be removed and taken away by Party B. Any fixtures ordecoration in the leased premises added by Party B shall become the property of Party A without anycompensation to Party B.After the return of the leased premises, Party A has the right to dispose of the objects whichare left in the leased premises by Party B without Party A’s consent.**Article IX Maintenance of the Leased Premises and the Ancillary Fixtures**(1) During the term of lease, Party B shall be responsible for the maintenance and repairs ofand the security of the leased premises and the ancillary fixtures (the “**Premises**”). Party B shallnotify Party A of any major repairs that Party A is responsible for. If Party A thinks fit, PartyA shall carry out such major repairs in time.(2) Party A shall not be responsible for the repairs and maintenance of and the security ofrenovation, decoration and new objects added by Party B.(3) During the term of the lease, Party B shall be responsible for the fire and safety of thePremises, keeping the area surrounding the Premises clean, and other comprehensive safety andsecurity obligations as required by relevant laws and regulations. Party B shall cooperate withParty A for Party A’s inspection of the Premises in this regard.
 
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(4) Party B shall use the Premises reasonably. Party B shall be responsible for repair of thePremises or compensate Party A for any damages or malfunctions (if applicable) of thePremises due to the unreasonable and/or improper use of the Premises by Party B. If Party B refusesto repair or otherwise be responsible for such damages or malfunctions, Party A may repair thePremises or purchase new objects instead, and Party B shall be responsible for any fees andexpenses incurred in connection with it.(5)Party B shall not be responsible for any wear and tear due to the nature of or reasonableuse of the Premises.(6) During the term of the lease, Party B shall not damage any equipment in the Premises.Party B shall seek Party A’s written consent before Party B changes the internal structures,decoration or equipment of the Premises and Party B shall bear the cost and expenses for suchchanges. At the expiration of the lease, unless otherwise agreed, Party A shall be entitled to askParty B to restore the Premises to the original condition or pay for the expenses that Party A mayincur if Party A restores the Premises to the original condition itself.**Article X. Sublets**Unless otherwise agreed by both parties, Party B shall seek for Party A’s prior writtenconsent before Party B sublets the lease in part or in whole to any third party.**Article XI. Termination**(1) The parties may terminate this Agreement if they reach a consensus through consultation.(2) This Agreement shall be terminated and neither party is liable to the other for breach ofcontract under the following circumstances:(a) the Premises becomes part of the demolishment plan of the government as required by thedevelopment of the city in accordance with applicable laws and regulations;(b) the Premises is damaged, destroyed or incurs other losses as a result of earthquake, fire orother force majeure events.(3)Party B shall have the right to terminate this Agreement unilaterally if:(a) Party A delays the delivery of the Premises for more than 10 days.(b) the Premises so delivered is not under the conditions as agreed hereunder, which adverselyaffects Party B’s use of the Premises.(c) the Premises so delivered is dangerous to the safety or health of Party B.(d) other reasons______________________________.
 
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(4) Party A shall have the right to terminate this Agreement unilaterally if:(a) Party B fails to pay the rent after it is due and outstanding for more than 30 days or failsto pay the rent at all.(b) The amount owed by Party B to Party A exceeds RMB5,000.(c) Party B changes the use of the Premises without Party A’s consent.(d) Party B changes the major structure of or causes damages to the Premises without Party A’sconsent.(e) Party B sublets the Premises to any third party without Party A’s consent.(f) Party B conducts illegal activities in the Premises.(g) Other reasons_______________________.**Article XII Dispute Solution**Any disputes arising out of or in connection with this Agreement shall be resolved throughconsultation between the parties or by meditation. If consultation or meditation fails, thedisputes may be referred to arbitration at Nantong Arbitration Committee in accordance withapplicable laws and regulations.This Agreement shall become effective after signing and affixing the seals of both parties.This Agreement shall be executed in four (4) original copies, with each party holding two (2)original copies.   Lessor (Party A) Seal: Jiangsu Linyang Electronics Co., Ltd. (seal affixed) Lessee (Party B) Seal: Jiangsu Linyang Solarfun Co., Ltd. (seal affixed)   Address: Address:   License No.: License No.:   Legal Representative: Legal Representative: /s/ Ping Xie   Telephone: Agent:   Agent of the Lessor (signature): /s/ Yonghua Lu Telephone:   Address:     Telephone:  
 
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