Document:

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                                                                   Exhibit 10.20

                               PRE-LEASE CONTRACT
                                       FOR
    SHANGHAI ZHANGJIANG MICRO-ELECTRONICS HARBOR INTELLIGENT OFFICE BUILDING
                                     BETWEEN
          SHANGHAI ZHANGJIANG MICRO-ELECTRONICS HARBOR LIMITED COMPANY
                                       AND
               SHENGQU INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD.

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       PRE-LEASE CONTRACT FOR SHANGHAI ZHANGJIANG MICRO-ELECTRONICS HARBOR
                          INTELLIGENT OFFICE BUILDING

Lessor:         Shanghai Zhangjiang Micro-Electronics Harbor Co., Ltd. (referred
                to as "Party A" hereunder)
Address:        Room 201, No.1196, Zhangjiang Road, Pudong, Shanghai
Corporate Legal Person registration No.: CJVHP314264 (Pudong)
Tel:          50803288
Fax:          50803588
Postcode:     201203

Lessee:         Shengqu Information Technical (Shanghai) Co., Ltd. (referred to
                as "Party B" hereunder)
Corporate Legal Person Registration No.: CFOHP316579(Pudong).
Address: 21/22F, Huarong Building, No.1289 Pudong South Road, Pudong, Shanghai
Tel: 50504720
Fax: 50504720-8088
Postcode: 200122

In accordance with the provisions of the Contract Law of the People's Republic
of China and the Shanghai House Lease Regulations (referred to as "the
Regulations" hereunder), and on the basis of free will, equities, fairness and
good faith, Parties A and B have, after mutual consultation, reached the
Agreement on the lease of the Office Building by Party B for which Party A may
legally do the pre-lease.

ARTICLE 1         CONDITIONS OF THE PRE-LEASED OFFICE BUILDING

1.1    The Office Building that Party A pre-leases to Party B is located at No.1
       (temporarily) Building of No.690 Bibo Road, Zhangjiang High-Tech Area,
       Shanghai (referred to as "the Office Building" hereunder), which is to
       the south of Zuchongzhi Road (Zhangjiang High-Tech Stop of Metro Line
       II), the west of Bibo Road, and the north of Chenhui Road, and the east
       of the complete intelligent Office Building housing estate of the
       Jingming Road. For details see Schedule I attached hereto.

1.2    Please refer to Schedule I for estimated construction area of the Office
       Building. Proprietary quality of the Office Building is for high-tech
       research and development as well as office. The exact area actually
       measured by the surveying and mapping organization as certified by
       Shanghai House and Land Resources Administration Bureau shall prevail
       after the completion of the Office Building.

1.3    The plane figure of the Office Building is set forth in Schedule II
       attached hereto, with the green oblique line filled in the part actually
       leased.

1.4    Party A, as the real estate owner of the Office Building, executes this
       lease agreement with Party B. At the time when this agreement is
       executed, Party A has warranted to Party B that the Office Building shall
       be free of any existing mortgage or any potential legal dispute.

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1.5    Please refer to Schedule III attached hereto for main fitment and
       facilities of the Office Building. Actual condition of the Office
       Building as delivered shall be the standard of its delivery. Both parties
       agree to sign confirmation document which will be regarded as the voucher
       for Party A's delivery of the Office Building and as the basis for the
       test and acceptance when Party B returns the Office Building to Party A
       at the time when this Contract is terminated.

ARTICLE 2         PURPOSE

2.1    Party B shall use this Office Building in accordance with the purpose,
       style of operation and service mark as stipulated in Schedule IV attached
       hereto, and shall abide by the national and municipal regulations
       concerning the use and property management of houses.

2.2    Party B shall not alter the said use, style of operation, as well as
       service mark except to the extent otherwise agreed upon by Party A in
       writing and approved by relevant authorities in accordance with
       regulations.

ARTICLE 3         DATE OF DELIVERY AND TERM OF THE LEASE

3.1    Term of the lease of the Office Building is as stipulated in Schedule V
       attached hereto.

3.2    Party A shall deliver the Office Building to Party B for fitting-up on
       Sept 30th, 2003 and Party B shall begin construction after the completion
       of relevant procedures. If Party B fails to take over the Office Building
       on the said date or Party A has the right to delay in the delivery of the
       Office Building as provided in this agreement, the commencing date of the
       lease shall remain the same; or else if for other reasons, Party A
       delays in the delivery of the Office Building, the commencing date of the
       lease shall be extended accordingly. After Party A has obtained Shanghai
       Real Estate Right Certificate, Party B shall sign an additional agreement
       with Party A, the content of which is as specified in Schedule X of this
       Agreement.

ARTICLE 4         RENTAL AND ITS CALCULATION, MANNER OF PAYMENT, AND TERM

4.1    See Schedule VI for rental, manner of payment and term for the Office
       Building.

ARTICLE 5         DEPOSIT AND OTHER FEES

5.1    Party B shall pay Party A a deposit, the amount and the payment of which
       are set forth in Schedule VII. If Party B fails to pay the said amount of
       deposit before the delivery of the Office Building, Party A shall have
       the right to delay on the delivery of the Office Building.

5.2    If, within the term of the lease, Party A suffers losses due to Party B's
       breach of the Agreement, Party A may deduct from the deposit an amount
       equal to actual losses; and thereafter Party B shall refund to Party A
       the amount deducted from the deposit.

5.3    If the deposit is not enough to compensate the losses incurred to Party
       A, Party A may otherwise ask from Party B for additional compensation.

5.4    If the Term of the Agreement is due or is terminated earlier, there is
       still any amount left in the deposit after Party A has deducted relevant
       liquidated damages or

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       other fees as stipulated herein, Party A shall return, without interest,
       within fifteen (15) days as of the date when this Agreement is terminated
       the said amount to Party B.

5.5    Party B shall pay property management fees in accordance with the
       charging standard of the property management corporation (see Schedule
       VIII).

5.6    Should there be any reasonable adjustment of the amount of the property
       management fee as a result of either the re-engagement of the property
       management corporation or the increase or decrease of the costs of the
       property management corporation (including the adjustment of the state
       fees and the salaries of the employees), Party B shall, upon being
       notified in writing thirty (30) days in advance, pay the fees as
       adjusted, after mutual consultation between the property management
       corporation and the enterprises that have moved into the Office Building,
       as well as the approval of administrative authorities on price. The
       property management corporation shall provide Party A a report issued by
       an accounting firm on the use of the property management fees.

5.7    Within the term of the lease, Party B shall pay by itself the fees for
       the use of water, electricity, gas, telephone and others on a timely
       basis in accordance with the amounts as evidenced by the public
       institutions of the government or other reasonable documents. Party B
       shall also pay all the fees relevant to the use of the Office Building,
       including, but not limited to, drawings examination fees and coordination
       fees for construction, fees for temporary use of electricity, and fees
       for the clearance of wastes. The standard for such fees shall be
       otherwise agreed upon.

ARTICLE 6         FITTING-UP

6.1    Party B shall abide by the following when it makes any fitting-up or
       installs any facilities in the Office Building:

       6.1.1  Party B shall provide the drawings to the property management
              corporation in advance when it proposes to make any fitting-up or
              to install any firefighting equipment to the Office Building and
              the construction could only be started after a written approval of
              the property management corporation is obtained.

       6.1.2  The construction shall be done in accordance with the drawings
              that have been approved by the property management corporation. If
              there is any alteration or change to the drawings, Party B shall
              re-submit the drawings in accordance with the provisions of 6.1.1.

       6.1.3  Any fitting-up, compartment, re-building and any installation of
              the equipment to the Office Building by Party B shall be done
              pursuant to the provisions of the laws and regulations of the
              People's Republic of China. If there is any loss incurred to Party
              A for Party B's failure to abide by the said provisions, Party B
              shall be responsible for the compensation of such losses. However,
              Party A need not be responsible for the losses caused by the delay
              as a result of the refusal or delay of the approval for such
              fitting-up by any relevant authorities.

       6.1.4  Party B shall, when making any internal fitting-up or installing
              any equipments, to the best of its abilities, use high-quality and
              appropriate style, for the purpose that the style level of the
              building matches the entire style of Shanghai Zhangjiang
              Micro-Electronics Harbor Intelligent Office Building.

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       6.1.5  Before any installation of lightings, service marks, symbols or
              advertisement stuffs in the Office Building that could be seen
              from outside of the Office Building, Party B shall provide to the
              property management corporation detailed drawings of the said
              installations for its written consent.

6.2    If Party B installs or permits other people to install any equipment into
       the Office Building, use of electricity of the equipment shall be
       indicated by an independent electricity meter of the Office Building.

6.3    Party B shall cause its employees, the construction company and its
       workers to cooperate fully with Party A, the property management
       corporation and other construction companies and their workers. Party B,
       the construction company and their workers shall abide by any provisions
       of the property management corporation concerning the construction.

ARTICLE 7         CONDITIONS OF THE OFFICE BUILDING AT THE TIME OF RETURN

7.1    Party B shall restore the Office Building to the same condition and
       return it to Party A no later that ten (10) days after the termination of
       this agreement. Party A shall have the right to ask Party B for the
       destruction of any fitting-ups, accessions, alterations, or
       installations of any equipment by Party B and the return of the Office
       Building in a condition as it is when delivered (undecorated office
       building).

7.2    However, Party A may ask Party B to maintain the fitting-ups of the
       Office Building. Party B shall follow the demand of Party A when the
       latter asks for the delivery of the fitting-ups in the Office Building.
       When such delivery is made, the said equipment shall be in a good
       condition for use (excepting any reasonable wear and tear). Party A shall
       be the owner of such equipment after the said delivery.

ARTICLE 8         SUBLEASE, TRANSFER AND EXCHANGE

8.1    The Office Building or any part of the Office Building shall not be
       subleased, transferred, exchanged or actually subleased, transferred, or
       exchanged in any other means to a third party except otherwise agreed
       upon by Party A in writing.

8.2    Without written consent of Party A, any acquirement of the right to
       operate in the said building by any natural person or company by any
       means except those provided in 8.1, shall be considered to be a breach of
       the provisions of 8.1.

8.3    If Party B establishes a new company that actually uses the Office
       Building, it shall notify Party A and provide relevant documents
       evidencing that the new company is its parent, subsidiary, branch or
       other affiliated companies.

8.4    If Party B does not propose to purchase the Office Building before the
       31st of December in 2006, then Party B shall no longer have the
       pre-emption right to the Office Building and Party A shall have the right
       to sell the Office Building to a third party. If Party A transfers the
       Office Building or any part of the Office Building, it shall make sure in
       any such transfer agreement that the transferee of the building shall
       assume and perform all the rights and obligations of Party A under this
       agreement, and shall cause the transferee to make such warranties to
       Party B in writing. Thereafter, the rights and obligations of Party A
       under this agreement are terminated.

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ARTICLE 9         RIGHT TO RELET

9.1    Party B shall, no later than six (6) months before the expiration of the
       lease or relet, provide to Party A an irrevocable application in writing
       to continue to lease the Office Building (referred to as "the reletting
       application"). After obtaining the permission of Party A, the Parties
       shall negotiate the terms and conditions of the lease agreement and sign
       a new one. It shall be considered as an abandonment of the right to relet
       either if Party B fails to provide the application on time or if the
       parties fail to come into agreement with regard to the terms and
       conditions of the said new lease agreement within three (3) months after
       such application.

ARTICLE 10        MUTUAL LIABILITIES

10.1   Liabilities of the Party A

       10.1.1 On the condition that Party B pays the rental and other fees on a
              timely basis in accordance with this Agreement, Party B shall have
              the right to make use of the Office Building and any other
              facilities provided by Party A within the term of the lease, and
              shall be entitled to the rights and interests of business
              generated by the use of the Office Building.

       10.1.2 Party A shall bear any taxation which is to be paid by the owner
              of the Office Building to relevant authorities in accordance with
              the provisions of the laws and regulations.

       10.1.3 Party A shall provide the design capacities and coal gas pipeline
              tie-ins and assist Party B in applying for the installation of the
              gas meter and Party B shall be responsible for fees for the
              capacity increase as well as other projects and relevant costs.

       10.1.4 Party A shall provide the design electricity and assist Party B in
              applying for the installation of the electricity meter and Party B
              shall be responsible for fees for the capacity increase as well as
              other projects and relevant costs if the actual demand of the
              electricity exceeds the design capacity of Party A.

       10.1.5 Party A shall provide the water supply and sewage disposal
              facilities and shall be responsible for the costs for such
              facilities to the public corridors outside of the Office Building.
              Party B itself shall be responsible for the construction and the
              costs thereof for such facilities to be connected from the public
              corridor to the inside of the Office Building.

       10.1.6 Party A shall keep and cause the property management corporation
              to maintain the main structure of the Office Building in a good
              condition and shall be responsible for any repair if necessary.

10.2   Liabilities of Party B

       10.2.1 Party B shall maintain all the internal fitting-ups and belongings
              thereof (which belong to Party B) of the Office Building,
              including, but not limited to, all the dynamoelectric facilities,
              firefighting facilities, coal gas facilities, electrical lines and
              pipelines in a clear and good condition. And Party B shall also be
              responsible for the daily maintenance of all the internal
              fitting-ups and

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               belongings to the Office Building from time to time within the
               term of the lease at its own cost.

       10.2.2  Party B and its employees shall operate in the Office Building in
               accordance with the provisions of the laws, regulations and the
               policies of the People's Republic of China.

       10.2.3  Party B shall permit Party A, together with future lessees or
               users of the Office Building, to know the structure and the
               facilities of the Office Building, within a reasonable time in
               three (3) months prior to the expiration or prior termination of
               the lease agreement.

       10.2.4  Party B undertakes to use the Office Building in accordance with
               the provisions as set forth in Schedule X attached hereto.

       10.2.5  Party B shall bear the cost for the destruction of any projects
               when any relevant authorities order to investigate and dispose of
               any construction, compartment, or any other addition built by
               Party B in the Office Building (no matter whether any such
               constructions, compartments, or any other addition has been built
               with the permission of Party A).

       10.2.6  Party B shall not intentionally perform any activities which may
               influence adversely to the name and reputation of the Office
               Building. And should there be any such adverse influence caused
               to the Office Building by any intentional misbehavior or
               negligence of Party B, it shall make an apology to Party A and be
               responsible for the compensation of any direct economic loss
               caused thereby.

       10.2.7  Party B shall not make or allow making any activities in the
               Office Building that may annoy the users of other office building
               and the neighboring buildings.

       10.2.8  Party B shall not make or allow making any illegal or immoral use
               of the Office Building.

       10.2.9  Party B shall itself arrange all the permissions needed for the
               business operation (including the business licenses, grants and
               other certificates), however, Party A agrees to provide
               reasonable assistance.

       10.2.10 Party B shall not do or allow doing any activities that may be
               considered to be a violation of any provisions concerning the use
               right of the land on which the Office Building is located.

       10.2.11 In order to maintain the image of the Office Building and to
               promote the level of management of the property management
               corporation, Party B shall abide by the management systems of
               such corporation. Party B hereby agrees to abide by the
               management systems set down by the property management
               corporation from time to time, and if it considers such systems
               to be unreasonable, it may, without the prejudice to the
               performance of such systems first, put forward objections to the
               property management corporation not later than ten (10) working
               days after the establishment of such systems.

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ARTICLE 11        INDEMNIFICATION

11.1   The Parties hereby explicitly agree that Party A do not have to either
       compensate or derate the rental or to be responsible for any other legal
       liabilities to Party B or any other parties in the cases of force majeure
       and where Party A has not acted in default unless to the extent that the
       loss was caused by Party A's default. Party B therefore undertakes to
       indemnify and keep Party A harmless from any liabilities for compensation
       for any such losses caused to Party B or any other parties.

       11.1.1 Whereas Party B has been acquainted to the situations of the
              building site of the Office Building, Party A do not have to be
              responsible for any adverse influence that may be caused to the
              normal operation of Party B.

ARTICLE 12        INSURANCE

12.1   Party B shall, at its own cost, obtain adequate fire insurance, marine
       insurance, third-party insurance, property insurance and business
       intermit insurance from a reputable insurance company for the fitting-ups
       and properties of the Office Building within the term of the use/the
       term of the lease.

12.2   Party B shall provide valid policies for said insurance and receipt for
       the last payment for such insurance fees once the property management
       corporation requires.

ARTICLE 13        CAUSES FOR TERMINATION

13.1   The Parties agree that this agreement will terminate in case of one of
       the following during the term of the lease and each party will not be
       liable to each other for the termination:

       13.1.1 The land-use right of the Office Building is recalled ahead of
              time in accordance with law;

       13.1.2 The Office Building is expropriated for the public interests or
              the need of municipal construction in accordance with law;

       13.1.3 The Office Building is either damaged or destroyed resulting from
              reasons other than the behavior of Party A, or being identified as
              a building in danger.

       13.1.4 Force majeure.

ARTICLE 14        BREACH OF CONTRACT

14.1   If Party B defaults on the payments of any rental, property management
       fee, the deposit provided in the agreement and any other payments
       according to this agreement, without any prejudice to any other rights of
       Party A, Party A shall have the right to require Party B to pay the
       overdue interests (which shall be calculated at 1% of the delinquent
       payments per day since the date on which Party B shall make such
       payments).

14.2   Party B hereby explicitly agrees and declares that Party A shall have the
       right to take back the Office Building and the facilities thereof in
       advance legally in cases on the occurrence of any of the following
       events, and this agreement will accordingly terminate immediately.
       Moreover, Party B shall pay an amount of money equal to the

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       deposit as compensation for the losses of Party A. However, the parties
       shall take any necessary measures to mitigate the losses, and the amount
       of compensation that Party B shall pay may be decreased accordingly if
       the actual losses of Party A are mitigated. Such Events are as follows:

       14.2.1 If Party B defaults on the payment of the rentals, property
              management fees, or the deposit without any reason in excess of
              thirty (30) days, and still fails to pay off such fees within a
              reasonable period of time after the notice of Party A.

       14.2.2 Party B comes into insolvency or liquidation;

14.3   It shall be enough for Party A to fully exert the right to take back the
       Office Building in advance when it notifies Party B in writing and
       declares that it shall exert such rights due to the breach of contract by
       Party B pursuant to the terms and conditions of this agreement, and Party
       A does not have to exert such rights by actually coming into and
       possessing the Office Building.

14.4   On the expiration or termination of this agreement in advance, if Party B
       delays on returning the Office Building, it shall pay the liquidated
       damages to Party A in an amount equal to three (3) times as the daily
       present rentals each day; if the delay exceeds fifteen (15) days, subject
       to the permission of the state supervisory authorities, Party A shall
       have the right to come into and possess the Office Building and to seal
       up for keeping all the belongings to Party B in the Office Building, and
       furthermore, Party B shall bear all the expenses related hereto.

14.5   Any party shall compensate any direct losses to the other party due to
       its breach of this agreement.

ARTICLE 15        DEFINITION AND OTHERS

15.1   Currency

       The currency of the rentals, the property management fees and the deposit
       shall be in Renminbi.

15.2   Party A reserves the absolute right to alter the design, layout and
       facilities of any part of the Office Building (other than those that have
       been leased to Party A).

15.3   Party A reserves the right to name the Office Building and Party A may,
       by notice to Party B not less than fifteen (15) days in advance, change
       the name of the Office Building and do not have to make any compensation
       to Party B or any other parties.

15.4   The governing law of this agreement shall be the local laws of the place
       where the Office Building is located. The Parties shall try to settle by
       negotiations with each other if there is any dispute. If such
       negotiations fail, any party may bring lawsuits to competent people's
       court where the Office Building is located.

15.5   This agreement shall become effective on the execution of the parties and
       be terminated when the rights and obligations of the parties have been
       performed.

15.6   Schedules to this agreement should be an integral part of the agreement
       and shall have the same force as the provisions of this agreement.

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15.7   This agreement has four counterparts, with one for each of the two
       parties, and two counterparts for the relevant registration authorities
       of the government.

THE PARTIES

PARTY A: SHANGHAI ZHANGJIANG MICRO-ELECTRONICS HARBOR CO., LTD.

LEGAL REPRESENTATIVE/DEPUTY: _________________________

PARTY B: SHENGQU INFORMATION TECHNICAL CO., LTD.

LEGAL REPRESENTATIVE/DEPUTY: _________________________

DATED, ON THE 29TH OF AUGUST, 2003

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SCHEDULE I

                    LOCATION AND AREA OF THE OFFICE BUILDING

The office building is the one located at No.1 Building (temporarily) of No.690,
Bibo Road, Zhangjiang High-tech Area, Shanghai and the assessed acreage of the
Building is 14457.35 sq. meters.

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SCHEDULE II

                     THE PLANE FIGURE OF THE OFFICE BUILDING

The leased area of the Office Building is marked with green oblique line for
reference.

The plane figure of the Office Building as certified by the Shanghai House and
Land Resources Administration Bureau shall prevail.

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Schedule III

                       LIST OF THE FITMENT AND FACILITIES

                         (AS THE STANDARD OF ACCEPTANCE)

The hall in the entrance of the ground floor: High-grade tile floors and
plasterboard suspending ceiling;

Kitchen, toilet and water room: skid-proof ground tiles, plastic suspending
ceiling;

Internal corridor and stairwell: skid-proof ground tile, aluminum ally
suspending ceiling, stair well flat-roofed dope;

Firefighting watch room and thin-electricity room: static-proof active floor,
dopes on the walls and the ceiling;

Office area, 4th Floor hostelling area, low-pressure electricity switch room,
electric tube well, elevator controlling room, utility room, and water tank
room: cement floors and dopes on the walls and the ceiling;

Outside wall: high-grade surface tiles, aluminum ally board, glass wall,
aluminum shutter;

Elevator: public amphibious for persons and goods elevator produced by Shanghai
Yongda mechanics and electric industrial limited company;

Door: splint door covered with fire-proof board;

Windows: high-grade aluminum ally windows;

Water: joint through DN 250 municipal pipeline at Bibo Road to the building;

Electricity: four (4) transformers with a capacity of 1250 KVA;

Coal gas: obligated coal tube joint in kitchens in each floor.

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SCHEDULE IV

                               USE OF THE BUILDING

Party B undertakes to party A that it will make use of the building only for the
purpose of providing services and office working within its business scope and
abide by the regulations of the state and Shanghai local government concerning
the use of the building and property management. Party B shall operate business
in the building under the name of Shengqu Information Technology (Shanghai) Co.,
Ltd. or its parent company, subsidiary company and other affiliated enterprises.

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SCHEDULE V

                 THE TERM OF THE LEASE AND THE RELETTING PERIOD

The term of the lease shall be 3 years, namely, from the 1st of January 2004 to
the 31st of December, 2006, with a reletting period of 2 years, namely, from the
1st of January, 2007 to the 31st of December, 2008. The whole period shall be 5
years.

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SCHEDULE VI

            THE RENTAL-FREE PERIOD, RENTALS, PAYMENT AND CALCULATION

1.     The rental free period:

       From the 1st of January 2004 to the 30th of June, 2004

2.     Rentals (calculated on the basis of the building area):

       The first year (from the 1st of July, 2004 to the 31st of December, 2004)

       RMB 1.5 Yuan / sq. meters per day

       The second year (from the 1st of January, 2005 to the 31st of December,
       2005)

       RMB 1.6 Yuan / sq. meters per day

       The third year (from the 1st of January, 2006 to the 31st of December,
       2006)

       RMB Yuan 1.7/ sq. meters per day

       The fourth and the fifth year (from the 1st of January, 2007 to the 31st
       of December, 2008) shall be the reletting period, of which the rentals
       will be negotiated otherwise during the period from the 1st of July, 2006
       to the 30th of September, 2008.

3.     The period before the 1st of January 2004, during which party B marks
       fitting-ups, shall be rental free.

4.     The parties hereby agree that the payment shall be done in a principle of
       "first pay, then lease", which means that the rental for each month shall
       be paid on the date of 10th in each month by Party B.

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SCHEDULE VII

                                     DEPOSIT

1.     Party B shall pay an amount of RMB2,128,670 Yuan to Party A as a deposit,
       the amount of which equals to the rentals and property management fees
       for 3 months.

2.     The time limit of payment of the deposit

       2.1    Party B shall pay the deposit of RMB 1,000,000 Yuan to Party A in
              three (3) working days after the execution of this contract.

       2.2    Party B shall pay the deposit of RMB 1,128,670 Yuan to Party A
              before the delivery of the building by Party A on the 30th of
              September 2003.

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SCHEDULE VIII

                             PROPERTY MANAGEMENT FEE

The property management fee of the building shall be RMB 3.45 Yuan / sq. meters
per month since the 1st of October, 2003. The monthly payments of the property
management fee shall be settled before the 10th of that month.

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SCHEDULE IX

                             SUPPLEMENTARY AGREEMENT

Lessor:    Shanghai Zhangjiang Micro-electronics Harbor Limited Company
           (referred to as "Party A" hereunder)
Address:   Room 201, No.1196, Zhangjiang Road, Pudong, Shanghai
Corporate Legal Person registration No.: CJVHP314264 (Pudong)
Tel: 50803288
Fax: 50803588
Postcode: 201203

Lessee:    Shengqu Information Technology (shanghai) Co., Ltd. (referred to as
           "Party B" hereunder)
Corporate Legal Person Registration No.: CFOHP316579(Pudong)____________.
Address:   Floor 21/22, Huarong Plaza, No.1289 Pudong South Road, Pudong,
           Shanghai
Tel: 50504720
Fax: 50504720-8088
Postcode: 200122

The parties have signed the Pre-Lease Agreement on the lease of the building
(referred to as "the Office Building") located at the No.1 Building
(temporarily) of No.690, Bibo Road, Zhangjiang High-tech Area, Shanghai by Party
A to Party B on _,_,2003. The Office Building has been completed and passed the
check and acceptance now. Party A has been granted the Shanghai Real Estate
Right Certificate, issued by Shanghai House and Land Resources Administration
Bureau. The number of the Certificate is __. According to the related state laws
and regulations, the related local regulations of Shanghai and the provisions of
the Pre-lease Agreement, the parties execute this supplement agreement.

ARTICLE I         THE AREA OF THE OFFICE BUILDING

The actual area of the Office Building is     sq. meters.

ARTICLE II        RENTAL OF THE OFFICE BUILDING

Rental for the Office Building shall be:

The first year (from the 1st of July, 2004 to the 31st of December, 2004)

RMB1.5 Yuan / sq. meters per day

The second year (from the 1st of January, 2005 to the 31st of December, 2005)

RMB1.6 Yuan / sq. meters per day

The third year (from the 1st of January, 2006 to the 31st of December, 2006)

RMB1.7 Yuan / sq. meters per day

                                       18
<PAGE>
The fourth and the fifth year (from the 1st of January, 2007 to the 31st of
December, 2008) shall be the reletting period, of which the rentals will be
negotiated otherwise during the period from the 1st of July , 2006 to the 30th
of September, 2008.

ARTICLE III       PROPERTY MANAGEMENT FEE

The property management fees of the building shall be RMB 3.45 Yuan/ sq. meters
per month.

ARTICLE IV        DEPOSIT OF THE OFFICE BUILDING

The deposit of the Office Building shall be ___

ARTICLE V         RE-CALCULATION OF THE EXPENSES

Pursuant to the standards set forth in this Supplement Agreement, the total
amount of the rentals and the property management fees that Party shall pay from
______ to _________ shall be _______. Party B has paid ______, and the
additional / amount shall be paid by Party A (B) to Party B(A) not less that
fourteen (14) days as of the execution of this Supplementary Agreement.

ARTICLE VI        OTHERS

6.1    This Supplementary Agreement is additional to the above Pre-Lease
       Agreement and shall prevail if there is any conflict between the two
       agreements.

6.2    This agreement has three counterparts, with one for each of the two
       parties, and one for the concerned real estate registration authorities.

6.3    This Supplementary Agreement will come into force on the execution of the
       parties and terminates at the same time as the above Pre-leasing
       Agreement.

The Parties,

Party A: Shanghai Zhangjiang Micro-Electronics Harbor Co., Ltd

Legal Representative/Deputy:

Party B: Shengqu Information Technology (Shanghai) Co., Ltd.

Legal Representative/Deputy:

Date: August 29, 2003

                                       19
<PAGE>

                                    STATEMENT

Our company / I have read the Article 8.5, Article 9.1, Article 11 and Article
14 of this Agreement and its Schedules, and fully understand and accepted the
content of the said articles.

Party B : Shengqu Information Technology (Shanghai) Co., Ltd.

Seal and Signature

Date: Aug. 29th, 2003.

                                       20
<PAGE>

           PRESALE AGREEMENT ON SHANGHAI ZHANGJIANG MICRO-ELECTRONICS

                       HARBOR INTELLIGENT OFFICE BUILDING

Party A: Shanghai Zhangjiang Micro-Electronics Harbor Ltd.

Party B: Shengqu Information Technology (Shanghai) Co., Ltd.

Part A and Part B, on the basis of free will, equity and consultation with each
other, have come into this Agreement with respect to Party B's purchase of
"Zhangjiang Micro-Electronics Harbor Intelligent Office Building" that is
pre-sold by Party A.

ARTICLE 1

Party B shall purchase the No.1 Building of Zhangjiang Micro-electronics Harbor
Intelligent Office Building located at No. 690, Bibo Road, (referred to as "the
Building"). The planned use of the land approved by the government is high-tech
research and development and for office use.

According to the present measurement by Party B, the area of the Building is
14457.35 sq. meters and there are 4 floors in the Building.

ARTICLE 2

Party B proposes to purchase the Building at a price of RMB8500 Yuan per sq.
meters

According to the building area measured by Party A, the total amount is
temporarily specified as RMB122,877,475.00 Yuan, subject to the actual amount.

ARTICLE 3

The total purchase price shall be the total price of the Building and the land
use right accordingly. The agreed total price shall no longer change except for
the reason that the actual building area measured in the future differs from the
one that has been measured at present.

After the completion of the Building, the actual area shall be determined
according to the building area and the respective land area measured by the
surveying and mapping institutions certified by Shanghai House and Land
Resources Administration Bureau.

ARTICLE 4

The parties agree that at any time before the 31st of December, 2006, Party B
shall have the right to duly sign the Presell Agreement on Shanghai Zhangjiang
Micro-Electronics Harbor Intelligent Office Building (referred to as the " Sales
Agreement") with Party A to purchase the said Building. The contents of the main
articles which have been confirmed above (including, but not limited to, the
price clause) shall be the main contents of the Presell Agreement

                                       21
<PAGE>

ARTICLE 5

The Pre-Lease agreement on Shanghai Zhangjiang Micro-Electronics Harbor
Intelligent Office Building (referred to as "the Pre-Lease Agreement") shall
terminate automatically once the execution of the Sales Agreement. Party A
hereby agrees that the rentals and the deposit that have been paid by Party B
shall be transferred into the payment for the purchase of the Building, namely
that the total purchase price payable by Party B shall be deducted accordingly
the paid rentals and deposit.

ARTICLE 6

The parties hereby agree that if Party B fails to sign the Sales Agreement to
purchase the Building due to its own reason, the Pre-Lease Agreement shall
terminate on the 31st of December, 2006. If Party B needs to renew the lease of
the Building, it shall put forward an application before the 30th of June 2006
and sign a new pre-lease agreement.

ARTICLE 7

During such period of time that Party B has the right to purchase the Building,
if Party A sells the whole or part of the Building in any means to a third party
under the circumstance that Party B does not breach the Pre-Lease Agreement,
Party A shall then assume the liabilities for breach of contract by means of
liquidated damages payable to Party B, the amount of which shall equal to twice
of the deposit as stipulated in the Pre-Lease Agreement.

                                       22<PAGE>

                                                                   Exhibit 10.21

               SHENGQU INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD.

                             ARTICLES OF ASSOCIATION

                                 JANUARY OF 2003

                                 SHANGHAI, CHINA

<PAGE>

                                    CONTENTS

CHAPTER

1.   GENERAL PROVISIONS
     Article 1         Company Name, Address and Legal Representative
     Article 2         Investor
     Article 3         Legal Person
     Article 4         Limited Liability

2.   BUSINESS PURPOSE AND SCOPE
     Article 5         Business Purpose
     Article 6         Business Scope

3.   TOTAL INVESTMENT AND REGISTERED CAPITAL
     Article 7         Total Investment and Registered Capital
     Article 8         Method of Contribution
     Article 9         Capital Verification
     Article 10        Increase, Assignment and Reduction of Registered Capital

4.   BOARD OF DIRECTORS
     Article 11        Establishment of Board of Directors
     Article 12        Powers of the Board
     Article 13        Directors
     Article 14        Board Meetings
     Article 15        Resolutions

5.   MANAGEMENT ORGANIZATION
     Article 16        Management System
     Article 17        Departments
     Article 18        General Manager
     Article 19        Non-Competition
     Article 20        Resignation

6.   TAXES, FINANCE AND ACCOUNTING
     Article 21        Taxes
     Article 22        Accounting
     Article 23        Fiscal Year
     Article 24        Bank Accounts
     Article 25        Foreign Exchange Control
     Article 26        Profit Distribution

7.   LABOR MANAGEMENT
     Article 27        Principles
     Article 28        Labor Contract
     Article 29        Reserved Fund
     Article 30        Trade Union

                                       i
<PAGE>

8.   INSURANCE
     Article 31        Insurance

9.   TERM, TERMINATION AND LIQUIDATION
     Article 32        Company Term
     Article 33        Extension of Term
     Article 34        Termination
     Article 35        Liquidation
     Article 36        Liquidation Committee
     Article 37        Task of Committee
     Article 38        Liquidation Priority
     Article 39        Completion of Liquidation

10.  MISCELLANEOUS
     Article 40        Rules and Regulations
     Article 41        Governing Laws
     Article 42        Languages
     Article 43        Amendment to Articles
     Article 44        Entry into Force
     Article 45        Execution

                                       ii
<PAGE>

               SHENGQU INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD.

                             ARTICLES OF ASSOCIATION

These Articles of Association are hereby formulated by [SPIRIT HIGH VENTURES
LTD.] ("INVESTOR") in accordance with the Law of the People's Republic of China
on Wholly Foreign Owned Enterprises, the Implementing Regulations to the Law of
the People's Republic of China on Wholly Foreign Owned Enterprises as well as
other relevant laws and regulations of the People's Republic of China ("PRC"),
for the establishment of its wholly owned enterprise, [Shengqu Information
Technology (Shanghai) Co., Ltd.] ("COMPANY"), in Shanghai, China.

                          CHAPTER 1 GENERAL PROVISIONS

ARTICLE 1         COMPANY NAME, ADDRESS AND LEGAL REPRESENTATIVE

The Chinese name of the Company is [Chinese Name] .

The legal address of the Company is: Room 638-7, Building No. 2, 351 Guoshoujing
Road, Zhangjiang High-Tech Park.

The legal representative of the Company is [Tianqiao Chen].

ARTICLE 2         INVESTOR

The sole investor and sole owner of one hundred percent of the equity interests
in the Company is [SPIRIT HIGH VENTURES LTD.], a limited liability corporation
organized and existing under the laws of the British Virgin Islands, with legal
address at [Room 638-7, Building No. 2, 351 Guoshoujing Road, Zhangjiang
High-Tech Park], and represented by [Tianqiao Chen].

ARTICLE 3         LEGAL PERSON

The Company is a wholly foreign owned company and is a legal person under the
laws of the PRC. The activities of the Company shall be governed and protected
by the laws, decrees, and relevant rules and regulations of the PRC.

The Company may establish branches, representative offices or any other
affiliated entities inside and outside of the PRC with the resolutions of the
Board of Directors and upon approval of the relevant government authorities.

ARTICLE 4         LIMITED LIABILITY

The Company is a limited liability corporation. The liability of the Company
shall be limited to its registered capital.

The liability of the Investor to the Company is limited to paying in full the
registered capital subscribed by the Investor. The Investor shall not have any
liability for any debts, liabilities and obligations of the Company of any
nature or in any manner after it has paid in full the

                                       1
<PAGE>

registered capital. Creditors of the Company shall have recourse only to the
assets of the Company, and shall have no recourse to the assets of the Investor.

                      CHAPTER 2 BUSINESS PURPOSE AND SCOPE

ARTICLE 5         BUSINESS PURPOSE

The business purposes of the Company are: to participate in the development and
construction of Shanghai Pudong, improve the application and development
abilities of the software in various fields such as commercial enterprises,
communication information, governments, finance and economics and education,
satisfy the increased demand for various application software and total
solutions, foster the development in the field of total solution for domestic
software application system, and simultaneously obtain relatively great economic
benefits.

ARTICLE 6         BUSINESS SCOPE

The business scope of the Company is: research and development of computer
hardware and network; development, design and production of computer software
and sale of the self-made products; design, installation, commissioning and
maintenance of computer system integration; technology development, technology
transfer, technology consultation and technology service of computers;
consulting service in computer systems and software, analysis and design service
in computer systems, data processing service, and business consultation service.

                CHAPTER 3 TOTAL INVESTMENT AND REGISTERED CAPITAL

ARTICLE 7         TOTAL INVESTMENT AND REGISTERED CAPITAL

The total investment of the Company is US$[10 million] and the registered
capital is US$[10 million].

ARTICLE 8         METHOD OF CONTRIBUTION

The registered capital of the Company shall be contributed in the form of United
States dollar cash of US$[10 million]. The contribution of the first fifteen
percent (15%) of the registered capital (i.e., US$1.5 million) will be made
within three (3) months after the issuance of the Company's business license,
and the remaining eighty five percent (85%) of the registered capital (i.e.,
US$8.5 million) shall be contributed within the three years after the Company
has obtained a business license.

ARTICLE 9         CAPITAL VERIFICATION

After each contribution has been made, an accountant duly registered in the PRC
shall be engaged by the Company to verify the contributions the Investor made
and to issue a verification report. The Company shall submit the verification
report to the original registration authority for the record.

                                       2
<PAGE>

ARTICLE 10        INCREASE, ASSIGNMENT AND REDUCTION OF REGISTERED CAPITAL

The Company may, in accordance with the relevant laws and regulations of the PRC
and upon a unanimous resolution of the Board of Directors, increase, assign or
reduce its registered capital during the term of the Company's operation to meet
the demands of the Company's business. Any proposed increase, assignment and
reduction of the registered capital of the Company shall be submitted to the
original examination and approval authority for approval and to the original
registration authority for the record.

                          CHAPTER 4 BOARD OF DIRECTORS

ARTICLE 11        ESTABLISHMENT OF BOARD OF DIRECTORS

The Company shall establish a Board of Directors ("BOARD") which is the highest
authority of the Company. The Board of Directors shall establish policies and
determine all critical issues concerning the Company's management, operations
and development. The Board of Directors shall perform its duties in compliance
with the laws and regulations of the PRC, and in accordance with the rules and
procedures set forth in these Articles of Association.

ARTICLE 12        POWERS OF THE BOARD

The Board shall have the following powers:

         (i)      Amendment of these Articles of Association;

         (ii)     Termination and liquidation of the Company;

         (iii)    Merger of the Company with another economic organization;

         (iv)     Increase, assignment or reduction of the registered capital of
                  the Company and the method adopted thereon;

         (v)      Establishment of branches, representative offices or other
                  affiliated entities;

         (vi)     Decisions on profit distributions;

         (vii)    Examination and approval of the Company's development plans,
                  annual production and operation plans, annual financial
                  budgets, annual balance sheets and profit and loss accounts
                  (final accounts);

         (viii)   Examination and approval of borrowings, guarantees and loans
                  exceeding amounts fixed by the Board in advance;

         (ix)     Examination and approval of mortgage, purchase, assignment or
                  sale of major assets of the Company other than as necessary
                  for the day-to-day business operations;

                                       3
<PAGE>

         (x)      Making decisions on such management, financial and
                  administration systems, rules and procedures as the Board may
                  deem appropriate;

         (xi)     Appointment and dismissal of the General Manager and approval
                  of the appointment and removal of other key personnel
                  appointed by the General Manager;

         (xii)    Responsibility for the direction of liquidation work upon
                  termination or expiration of the term of the Company;

         (xiii)   Appointment and dismissal of the independent auditor of the
                  Company; and

         (xiv)    Any other matters provided in these Articles of Association.

ARTICLE 13        DIRECTORS

The Board shall consist of 3 Directors, one (1) of whom shall serve as the
chairman ("CHAIRMAN"), and all of whom shall be appointed or dismissed by the
Investor. Each Director shall have a term of office of three (3) years subject
to removal by the Investor at any time with or without cause. Directors may be
re-appointed for consecutive terms by the Investor.

ARTICLE 14        BOARD MEETINGS ("MEETING")

14.1     First Meeting
         The first Board Meeting shall be held within one (1) month after the
         issuance of the business license to the Company.

14.2     Annual Meeting and Meeting Locations
         The Board shall convene at least one (1) Meeting each year. Meetings
         shall be held at the registered address of the Company or such other
         addresses inside or outside of China as is designated by the Chairman.

14.3     Interim Meeting
         An interim Meeting may be held when the Chairman deems it necessary or,
         upon a proposal to the Chairman made by one (1) or more Directors who
         specifies the matters to be discussed at the Meeting, under which
         circumstance, the Chairman shall call such Meeting as soon as possible,
         but not later than sixty (60) days from such demand.

14.4     Agenda
         Meetings shall be called and presided over by the Chairman, or in his
         absence or inability, by a Director or a proxy authorized by the
         Chairman. The Chairman shall prepare Meeting agendas.

14.5     Notice
         The Chairman shall send notice of Meetings to all Directors at least
         twenty (20) days before a Meeting is scheduled. The notice shall cover
         the agenda, time and place of the Meeting.

                                       4
<PAGE>

14.6     Attendance
         Meetings may be attended by Directors in person, by telephone, or by
         proxies entrusted in writing. The proxies so entrusted shall have the
         same rights and powers as the appointing Director.

14.7     Quorum
         More than half of the Directors present in person, by telephone or by
         proxy shall constitute a quorum of the Meeting. Should no quorum is
         constituted at a Meeting, the Chairman shall have the right to call
         another Meeting, and the quorum required for such Meeting shall be one
         third of the Directors present in person, by telephone or by proxy. Any
         Director absent from any Meeting without giving a reason shall be
         deemed to have abstained from voting.

14.8     Language and Records
         Except otherwise accepted by the Board, the language used during the
         Meetings shall be Chinese. The Board shall cause complete and accurate
         minutes which shall be signed by the Chairman, including attachments
         and exhibits thereto to be kept for the record in accordance with the
         relevant laws and regulations of the PRC.

ARTICLE 15        RESOLUTIONS

15.1     The Board shall make decision on issues by a resolution in the Meeting.
         Should no Meetings be convened, a written resolution which is signed by
         all Directors shall be equally effective and valid as a resolution
         passed at a Meeting.

15.2     Resolutions involving the following issues may only be adopted by the
         Board upon a unanimous affirmative vote, and shall be submitted to the
         original examination and approval authority for approval, and shall be
         registered with the original registration authority for the record:

         (i)      Amendment to the Articles of Association of the Company;

         (ii)     Any increase, assignment or reduction of the Company's
                  registered capital;

         (iii)    Extension of the operation term of, dissolution and
                  liquidation of the Company;

         (iv)     Merger of the Company with another economic entity; and

         (v)      Any other matter the Board deems to be decided by a unanimous
                  vote.

Resolutions concerning all other issues shall be adopted upon affirmative votes
of a majority of the directors of the Board.

                                       5
<PAGE>

                        CHAPTER 5 MANAGEMENT ORGANIZATION

ARTICLE 16        MANAGEMENT SYSTEM

The Company shall establish a management system which is under the leadership of
the General Manager who shall be responsible to the Board. The General Manager
shall be responsible for the daily operations and management of the Company
under the leadership of the Board.

ARTICLE 17        DEPARTMENTS

Under the leadership of the General Manager, the following divisions of
departments may be established to meet the needs of the Company's business
operations:

         (i)      Technology Department;
         (ii)     Operations and Services Department;
         (iii)    Finance Development;
         (iv)     Human Resources Department;
         (v)      Administration Department;
         (vi)     Any other department deemed to be necessary to the Company.

Unless otherwise resolved by the Board, the managers of such departments shall
be appointed by the General Manager and approved by the Board.

ARTICLE 18        GENERAL MANAGER

The appointment, term of office, responsibilities and dismissal of the General
Manager shall be determined by the Board. The General Manager shall have the
following powers and duties:

         (i)      To organize the implementation of all resolutions of the Board
                  and to regularly report his work to the Board;

         (ii)     To establish management organizations and operation policies
                  of the Company according to these Articles of Association and
                  the laws and regulations of the PRC;

         (iii)    To appoint and dismiss management personnel and other
                  personnel of the Company and to determine the
                  responsibilities, powers and duties of the management
                  personnel;

         (iv)     To fix the number of expatriate personnel according to the
                  needs for the development of the Company;

         (v)      To be responsible for the day-to-day administration, business,
                  and financial management of the Company, including but not
                  limited to signing binding contracts on behalf of the Company
                  within the budget approved by the Board;

                                       6
<PAGE>

         (vi)     To organize the preparation of the Company's development
                  plans, annual production and operation plans, annual financial
                  budget, annual balance sheet, profit and loss account (final
                  annual accounts) and profit distribution proposals;

         (vii)    To decide upon the employment, rewards, punishment and
                  dismissal of the Company's personnel;

         (viii)   To represent the Company in conducting important outside
                  affairs; and

         (ix)     Other powers granted or duties prescribed to the General
                  Manager by the Board.

ARTICLE 19        NON-COMPETITION

Unless otherwise approved by the Board, the General Manager and other members of
the operation and management organizations shall work full-time for the Company
and shall not serve or act on behalf of other economic entities whether or not
are in competition with the Company.

ARTICLE 20        RESIGNATION

The General Manager shall submit a written resignation notification to the Board
at least sixty (60) days prior to his/her resignation. Other members of the
operation and management organizations shall submit a written resignation
notification to the General Manager at least thirty (30) days prior to his/her
resignation.

                     CHAPTER 6 TAXES, FINANCE AND ACCOUNTING

ARTICLE 21        TAXES

21.1     The Company shall pay income tax and any other taxes in accordance with
         the Income Tax Law on Foreign Investment Enterprises and Foreign
         Enterprises of the PRC, Implementing Rules to the Income Tax Law on
         Foreign Investment Enterprises and Foreign Enterprises of the PRC and
         other relevant rules or regulations of the PRC.

21.2     The Company shall obtain for itself and its personnel all tax benefits
         that may now or in the future be available under the PRC laws or any
         applicable international treaties or agreements, including tax
         holidays, exemptions, reductions, privileges and preferences with
         respect to the PRC income taxes, withholding taxes, customs duties,
         value added taxes, consumption tax, business tax, real estate taxes,
         vehicles taxes and any other relevant taxes or duties.

21.3     The employees of the Company shall pay individual income taxes in
         accordance with the Individual Income Tax Law of the PRC and other
         relevant laws and regulations of the PRC.

                                       7
<PAGE>

ARTICLE 22        ACCOUNTING

22.1     The bookkeeping and accounting systems of the Company shall comply with
         the Accounting Regulations on Foreign Investment Enterprises of the
         PRC, and other relevant laws and regulations of the PRC, and
         internationally accepted accounting practices which are consistent with
         the PRC accounting principles.

22.2     The Company shall adopt the accrual basis accounting method and the
         debit-credit book keeping method.

22.3     The Company shall adopt Renminbi as its accounting currency. The
         conversion of Renminbi into other currencies shall be handled in
         accordance with policies established by the Board according to relevant
         laws and regulations of the PRC;

22.4     Unless otherwise required by the Board, all statements, vouchers,
         reports and account books shall be written in Chinese.

22.5     The Board shall engage an independent accountant duly registered in the
         PRC to carry out annual audit for the Company.

ARTICLE 23        FISCAL YEAR

The Company shall adopt the calendar year as its fiscal year, which shall begin
on 1 January and end on 31 December of the same year except that the first
fiscal year of the Company shall commence on the date of issuance of the
business license to the Company and shall end on the immediately succeeding 31
December, unless otherwise decided by the Board and approved by the relevant PRC
authorities.

ARTICLE 24        BANK ACCOUNTS

The Company shall open foreign currency account(s) and Renminbi account(s) with
appropriate bank(s) within and/or outside of the PRC.

ARTICLE 25        FOREIGN EXCHANGE CONTROL

The Company shall handle all foreign exchange issues in accordance with the laws
and regulations of the PRC.

ARTICLE 26        PROFIT DISTRIBUTION

The Company may distribute profits after allocations have been made to the
various funds and income taxes have been paid. Profit distribution plans shall
be decided by the Board in an unanimous affirmative resolution.

                                       8
<PAGE>

                           CHAPTER 7 LABOUR MANAGEMENT

ARTICLE 27        PRINCIPLES

All matters concerning recruitment, dismissal, wages, welfare, benefits,
subsidies, labor protection, bonuses and labor discipline of staff members of
the Company shall be handled in accordance with the Labor Law of People's
Republic of China and Regulations on the Labor Administration on Foreign
Investment Enterprises and other relevant laws and regulations of the PRC.

ARTICLE 28        LABOR CONTRACT

The Company shall sign individual labor contracts with the employees or
collective labor contract with the trade union of the Company. Each individual
labor contract shall include type of work, technical capabilities and
remuneration of such employee. Increases in remuneration shall be determined by
the General Manager. The labor contract shall be submitted to the local labor
bureau for the record.

ARTICLE 29        RESERVED FUND

The Company shall set aside a reserved fund and employees' welfare and bonus
fund in accordance with the relevant laws and regulations of the PRC. The Board
shall consider the financial and operational conditions of the Company and other
relevant factors to determine amount to be allocated to such funds in each year.

ARTICLE 30        TRADE UNION

The employees of the Company shall have the right to establish a trade union to
represent rights and interests of the employees in accordance with relevant laws
and regulations of the PRC. The trade union may represent the employees to enter
into collective labor contracts with the Company, in order to safeguard the
lawful rights and benefits of the employees, etc.

                               CHAPTER 8 INSURANCE

ARTICLE 31        INSURANCE

The Company shall, at its own cost and expense, take out and maintain necessary
insurance for the Company's assets and operations if and as required by the laws
and regulations as well as in accordance with the standards and policies of the
Investor.

                   CHAPTER 9 TERM, TERMINATION AND LIQUIDATION

ARTICLE 32        COMPANY TERM

The term of the Company shall be 20 years ("Term"), commencing on the date of
the issuance of the business license to the Company, subject to early
termination as provided in Article 34.

                                       9
<PAGE>

ARTICLE 33        EXTENSION OF TERM

Should the Company wish to extend the Term, and if so resolved by the Board, the
Company shall submit to the original approval authority for approval an
application for the extension of the term no later than one hundred and eighty
(180) days prior to the scheduled expiration of the term of the Company. After
obtaining the approval, the Company shall carry out the alteration registration
formalities with the original registration authority.

ARTICLE 34        TERMINATION

The Investor may terminate and liquidate the Company prior to the expiration of
the Term by sending a written application notice to the original examination and
approval authority in any of the following cases:

         (i)      Any additional or different conditions are imposed by the
                  relevant approval authority or any other governmental
                  authority that materially affect the Investor's rights under
                  these Articles of Association.

         (ii)     The accumulated losses of the Company exceed two thirds (2/3)
                  of its registered capital or the Company suffers heavy losses
                  that the Board deems can not be recovered;

         (iii)    The Company has been unable to operate for a continuous period
                  of six (6) months due to the occurrence of an event of Force
                  Majeure or any other reason not attributable to the Investor;

         (iv)     The business license or any other licenses (if any) required
                  for the operation of the Company have expired, been terminated
                  or been suspended for a continuous period of three (3) months;

         (v)      All or most of the assets or property of the Company in the
                  PRC have been expropriated or requisitioned, or the PRC
                  personnel of the Company has been reassigned or removed and
                  the operations of the Company are thereby adversely affected
                  to a material extent.

         (vi)     In case of a material increase in the taxes, duties and
                  charges payable by the Company due to a change in the
                  applicable law;

         (vii)    Adverse change in any laws, regulations, or rules of the PRC
                  that materially affect the Investor's rights under these
                  Articles of Association.

         (viii)   The Board deems the termination of the Company to be in the
                  Company's best interest.

ARTICLE 35        LIQUIDATION

In case of the expiration or early termination of the Company, the Company shall
make announcement thereof and proceed with liquidation in accordance with
relevant legal procedures. The Board shall determine the liquidation procedures
and principles, and members of the liquidation committee to be established.

                                       10

<PAGE>

ARTICLE 36        LIQUIDATION COMMITTEE

The liquidation committee ("COMMITTEE") shall consist of all of the Directors,
one (1) representative of the relevant authority and one (1) representative of
the Company's creditors. If necessary, the Board may appoint one (1) auditor
and/or one (1) lawyer as member of the Committee or to assist the Committee in
the liquidation.

ARTICLE 37        TASK OF COMMITTEE

The task of the Committee is to comprehensively investigate and assess all of
the assets, credit claims and debts of the Company, draw up the balance sheet
and to propose and carry out liquidation plan. During the liquidation process,
the Committee shall represent the Company to sue and be sued. All matters
handled by the Committee shall be carried out upon the approval of the Board.

ARTICLE 38        LIQUIDATION PRIORITY

The expenses of the liquidation and the remuneration for the members of the
Committee shall be paid in priority from the existing assets of the Company.
After the Committee has repaid all of the debts of the Company, the remaining
assets, if any, shall be remitted to the Investor.

ARTICLE 39        COMPLETION OF LIQUIDATION

Upon the completion of the liquidation, the Company shall submit a report to the
original examination and approval authorities, and shall proceed with the
procedures for the cancellation of its registration with the original
registration authorities, return its business license. All bookings shall be
kept by the Investor after the completion of liquidation.

                            CHAPTER 10 MISCELLANEOUS

ARTICLE 40        RULES AND REGULATIONS

The Company may work out and implement the following rules and regulations
subject to approval of the Board:

         (i)      Management regulations, including the powers and functions of
                  department managers and their working rules and procedures;

         (ii)     Rules for the staff and workers;

         (iii)    System of labour and salary;

         (iv)     System of work attendance record and promotion, awards and
                  penalties for staff and workers;

         (v)      Detailed rules for staff and workers' welfare;

         (vi)     Financial system;

                                       11
<PAGE>

         (vii)    Liquidation procedures upon the dissolution of the Company;
                  and

         (viii)   Other necessary rules and regulations.

ARTICLE 41        GOVERNING LAWS

41.1     The formation, validity, interpretation, and performance of these
         Articles of Association and its Annexes shall be governed by the laws
         of the PRC, but in the event that there are no relevant laws published
         or publicly available in the PRC governing a particular matter relating
         to these Articles of Association, reference shall be made to general
         international practices.

41.2     If, after the execution of these Articles of Association: (a) existing
         laws and/or regulations of the PRC ("Chinese Laws") are changed or any
         new Chinese Laws are introduced which are applicable to the Company or
         the activities of the Investor, and (b) the effect of such changed or
         new Chinese Laws are either to provide for preferential treatment to,
         or to have an adverse effect on, the Company or the Investor, then:

         (i)      If the changed or new Chinese Laws are more favourable to the
                  Company or to the Investor than those in effect on the date
                  these Articles of Association were signed, the Company shall
                  promptly apply to receive the benefits of such changed or new
                  Chinese Laws; and,

         (ii)     If, because of such changed or new Chinese Laws, the
                  Investor's economic benefits under these Articles of
                  Association are materially and adversely affected directly or
                  indirectly, then, in accordance with the provisions of
                  relevant Chinese laws and regulations, these Articles of
                  Association shall continue to be implemented in accordance
                  with its original terms. If in the view of the Investor this
                  cannot satisfactorily be achieved, amendments shall be made to
                  these Articles of Association as shall be required to maintain
                  the Investor's economic benefits under these Articles of
                  Association.

ARTICLE 42        LANGUAGES

These Articles of Association are written in Chinese and English. Both versions
have equal validity, provided that in the event of any inconsistency or conflict
between the two versions, the Chinese version shall be controlling.

ARTICLE 43        AMENDMENT TO ARTICLES

Any amendment to these Articles of Association shall be decided by a unanimous
resolution of the Board of Directors and shall be submitted to the original
examination and approval authorities for approval and the original registration
authority for the record.

ARTICLE 44        ENTRY INTO FORCE

These Articles of Association shall enter into force as of the date of approval
by the relevant examination and approval authority.

                                       12
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ARTICLE 45        EXECUTION

These Articles of Association are signed in Shanghai, China, by the authorized
representative of the Investor in January of 2003.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] (Attached with the Shareholder's
execution page)

                                       13
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[EXECUTION PAGE]

Signature:
          ------------------------------

Date:
      ----------------------------------

                                       14

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