Document:

exv10w4

 

Exhibit 10.4

DATED
THIS 29th
DAY OF March 2004
 BY AND AMONG

CHINACAST TECHNOLOGY (SHANGHAI) LIMITED

THE CCLX SHAREHOLDERS

AND

CHINACAST LI XIANG CO LTD

 

SUPPLEMENTAL DEED TO

TECHNICAL SERVICES AGREEMENT

 

 

 

TABLE
OF CONTENTS

	 	 	 	 	 	 	 
	CLAUSE	 	HEADING	 	PAGE	 
	1.
	 	INTERPRETATION	 	 	1	 
	 	 	 
	2.
	 	AMENDMENTS TO THE TECHNICAL SERVICES AGREEMENT	 	 	1	 
	 	 	 
	3.
	 	SAVINGS	 	 	3	 
	 	 	 
	4.
	 	COUNTERPARTS	 	 	3	 
	 	 	 
	5.
	 	GOVERNING LAW	 	 	4	 

 

 

THIS SUPPLEMENTAL AGREEMENT is made on 29 March 2004

BETWEEN:

	(1)	 	CHlNACAST TECHNOLOGY (SHANGHAI) LIMITED, a wholly foreign-owned
limited liability enterprise organised and existing under the laws of
the PRC (“CCT Shanghai”);
	 
	(2)	 	CHlNACAST LI XIANG CO LTD, a limited liability company organized and
existing under the laws of the PRC (“CCLX”);
	 
	(3)	 	CHlNACAST CO., LTD, a limited liability company organized and existing under
the laws of the PRC (“CCL”); and
	 
	(4)	 	LI WEI, an individual and citizen of the PRC
(“LW”).

WHEREAS:

	(A)	 	This Supplemental Agreement is supplemental to the Technical Services Agreement
dated 11 August 2003 (the “Technical Services Agreement”) entered into between
CCT Shanghai, CCLX, CCL and LW.
	 
	(B)	 	CCT Shanghai, CCLX, CCL and LW have agreed to vary and amend the Technical
Services Agreement upon the terms and conditions herein with effect from the date of
the Technical Services Agreement and in consideration of the mutual covenants and
obligations herein contained (the sufficiency of which is hereby acknowledged).

NOW IT IS HEREBY AGREED as follows:

	1.	 	INTERPRETATION
	 
	 	 	Terms defined and expressions in respect of which a construction is given in the Technical
Services Agreement shall bear the same meaning or, as the case may be, construction when
used herein unless otherwise defined or given a construction herein except where the
context otherwise requires.
	 
	2.	 	AMENDMENTS TO THE TECHNICAL SERVICES AGREEMENT
	 
	 	 	The Technical Services Agreement shall be varied and amended with effect from the date of
the Technical Services Agreement as follows:

	 	(a)	 	Inserting immediately after Section 1.5,
	 
	 	 	 	“Section 1.6 Financial Support To the extent that CCT Shanghai, in its
absolute discretion, deems it necessary for the provision of Services with

 

 

	 	 	 	respect to the Business, CCT Shanghai shall provide CCLX financial support in such
amount and form as it may determine. CCLX shall repay all financial support extended by
CCT Shanghai immediately upon demand by CCT Shanghai.”

	 	(b)	 	Section 2.1 is hereby amended by deleting it in its entirety and inserting the
following in substitution therefor:
	 
	 	 	 	“Section 2.1 Compensation.
	 
	 		 	a.     No later than the 10th day of each calendar month, CCLX will deliver
to CCT Shanghai a statement (the “Statement of Monthly Operating Results”) of the total revenue CCLX has earned in the preceding month
(including any cost reimbursements) (“CCLX Revenue”) and of the operating
expenses (including any taxes) which CCLX has reasonably incurred with in
the course of the Business during that month as agreed between CCLX and
CCT Shanghai from time to time (“CCLX Operating
Expenses”). The parties
shall have regard to any other agreement entered into between themselves in
determining the CCLX Operating Expenses.
	 
	 		 	b.     As compensation for the performance of the Services, including the
provision of ancillary Equipment, CCLX will pay to CCT Shanghai on the
tenth business day of each calendar month, in Renminbi and in immediately
available funds in an account designated by CCT Shanghai, service fees
(“Service Fees”) in an amount equal the difference between the CCLX
Revenue and CCLX Operating Expenses for the preceding month..
	 
	 	 	 	In the event that CCLX Operating Expenses exceed CCLX Revenue for the relevant calendar
month, CCT Shanghai shall, on the first day of the calendar month following receipt of
the applicable Statement of Monthly Operating Results, reimburse CCLX an amount
equivalent to such excess.
	 
	 	 	 	Section 2.1A Budget. CCLX shall prepare an annual
budget (the “Budget”) in
relation to its Business which Budget shall include projections for each month of CCLX
Revenue and CCLX Operating Expenses CCLX pricing policies and payment terms. CCLX shall
submit the Budget to CCT Shanghai for its approval and CCT Shanghai shall review the
budget on a quarterly basis. Any changes or deviation to the Budget also requires the
approval of CCT Shanghai.
	 
	 	 	 	CCLX hereby undertakes to CCT Shanghai that it shall use its best endeavours to operate the
Business within the Budget. Notwithstanding that the Auditors have certified (in accordance
with Clause 5.2) that the Operating Expenses have been reasonably incurred in accordance
with Sections 2.1, CCT Shanghai shall not be responsible and will not reimburse CCLX for
any Operating Expenses that exceed the amount set out in the Budget (the “Unbudgeted
Operating Expenses”). However, CCT Shanghai may in its absolute discretion, consent to
any Unbudgeted Operating Expenses, in whole or in part, and it shall be responsible for
such Unbudgeted Operating Expenses that it has consented to.”

 

 

	 	(c)	 	Inserting immediately after Section 5.2,
	 
	 	 	 	“CCT Shanghai shall have the right, at its request and expense, to inspect
and/or procure the Auditor to inspect any records kept by CCLX in relation to
the CCLX Revenue, CCLX Operating Expenses and Service Fees. The Auditor shall
after such inspection, at the request of CCT Shanghai, issue a certificate
certifying the amount of the CCLX Revenue, the amount of CCLX Operating Costs
and certifying the extent to which the CCLX Operating Costs are reasonable and
have been incurred on an arm’s length basis. The Parties hereby agree that a
certificate issued by the Auditor in relation to the Operating Expenses incurred
and the Service Fees payable under Section 2.1 shall be final, conclusive and
binding on the Parties with respect to the matters certified.
	 
	 	 	 	Section 5.2A Right to Audit. CCT Shanghai shall have the right, at its
cost and expense, to have the accounts of CCLX audited by the Auditor for each
accounting year in accordance with International Accounting Standards or in
accordance with such other accounting standards, principles and practices
generally accepted (including but not limited to Singapore Accounting Standards
and U.S. GAAP) at CCT Shanghai’s absolute discretion (the “Agreed Accounting
Standards”).
	 
	 	 	 	Section 5.2B Comfort Undertakings. CCL and Li Wei hereby severally and jointly
undertake to procure and CCLX hereby undertakes to CCT Shanghai that :-
	 
	 		 	a.     the accounts of CCLX shall be prepared in accordance with Agreed
Accounting Standards;
	 
	 		 	b.     all revenue earned in the course of the Business shall be accurately and
timely reflected in the accounts of CCLX; and
	 
	 		 	c.     in the course of the Business, CCLX will only incur Operating
Expenses which are reasonable.”

	3.	 	SAVINGS
	 
	 	 	Save and except for the variations and amendments contemplated by this Supplemental
Agreement, the Technical Services Agreement shall continue in full force and effect in all
other respects. Nothing in this Supplemental Agreement shall vary any liability or
obligation of any party under the Technical Services Agreement other than to the extent
specified herein. All rights and benefits previously enjoyed by any party under the
Technical Services Agreement shall remain unaffected and undiminished except to the extent
specified herein. In the event of any conflict or inconsistency between the terms of this
Supplemental Agreement and the Technical Services Agreement, the provisions of this
Supplemental Agreement shall prevail.
	 
	4.	 	COUNTERPARTS
	 
	 	 	This Supplemental Agreement may be signed in any number of counterparts, all of which taken
together shall constitute one and the same instrument. Either party may

 

 

	 	 	enter into this Supplemental Agreement by signing any such counterpart and each
counterpart may be signed and executed by the parties and transmitted by facsimile
transmission and shall be as valid and effectual as if executed as an original.

	5.	 	GOVERNING LAW
	 
	 	 	The construction, validity and performance of this Supplemental Agreement shall be governed
in all respects by the laws of the PRC.

 

 

IN WITNESS WHEREOF this Agreement has been duly executed by the parties hereto.

	 	 	 	 	 
	CHINACAST TECHNOLOGY (SHANGHAI) LIMITED
	 	 	 	 
	 
	 	 	 	 
	The Seal of

CHINACAST TECHNOLOGY

(SHANGHAI) LIMITED

was hereunto affixed in the 

presence of:

	 	)

)

)

)

)
	 	
	 
	 	 	 	 
	
 

	 	 	 	Authorised Representative

	 	 	 	 	 
	CHINACAST LI XIANG CO. LTD
	 	 	 	 
	 
	 	 	 	 
	The Seal of

CHINACAST LI XIANG CO. LTD

was hereunto affixed in the

presence of:

	 	)

)

)

)
	 	
	 
	 	 	 	 
	
 

	 	 	 	Authorised Representative

	 	 	 	 	 
	CHINACAST CO., LTD
	 	 	 	 
	 
	 	 	 	 
	The Common Seal of

CHINACAST CO., LTD

was hereunto affixed in the

presence of:

	 	)

)

)

)
	 	
	 
	 	 	 	 
	
 

	 	 	 	Director

 

 

	 	 	 	 	 
	LIWEI

	 	)

)

)

)
	 	
	 
	 	 	 	 
	signed in the presence of:exv10w5

 

Exhibit 10.5

DATED THIS 29th DAY OF March 2004

BY AND AMONG

CHINACAST TECHNOLOGY (SHANGHAI) LIMITED

CHINACAST TECHNOLOGY (BVI) LIMITED

THE CCLX SHAREHOLDERS

AND

CHINACAST LI XIANG CO LTD

 

REVENUE AND COST ALLOCATION

AGREEMENT

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	CLAUSE	 	HEADING	 	PAGE	 
	 	 	 
	 	 	 	 
	1.	 	INTERPRETATION AND EFFECTIVE DATE
	 	 	1	 
	 	 	 
	2.	 	REVENUE ALLOCATION
	 	 	1	 
	 	 	 
	3.	 	COST ALLOCATION
	 	 	2	 
	 	 	 
	4.	 	SAVINGS
	 	 	2	 
	 	 	 
	5.	 	COUNTERPARTS
	 	 	2	 
	 	 	 
	5.	 	GOVERNING LAW
	 	 	2	 

 

 

\

THIS AGREEMENT is made on 29 March 2004.

BETWEEN:

	(1)	 	CHINACAST TECHNOLOGY (SHANGHAI) LIMITED, a wholly foreign-owned limited liability enterprise
organised and existing under the laws of the PRC (“CCT Shanghai”);
	 
	(2)	 	CHINACAST TECHNOLOGY (BVI) LIMITED, a company incorporated under the laws of the British
Virgin Islands (“CCT”)
	 
	(3)	 	CHINACAST LI XIANG CO LTD, a limited liability company organized and
existing under the laws of the PRC (“CCLX”);
	 
	(4)	 	CHINACAST CO., LTD, a limited liability company organized and existing under the laws of the
PRC (“CCL”); and
	 
	(5)	 	LI WEI, an individual and citizen of the PRC (“LW”).

WHEREAS:

	(A)	 	CCT Shanghai, CCLX, CCL and LW have entered into a technical services agreement dated 11
August 2003, and as amended by a supplemental agreement dated 29 March 2004 (the
“Technical Services Agreement”), pursuant to which CCT Shanghai has agreed to provide
CCLX with Services.
	 
	(B)	 	To formally document the understanding of the parties with respect to the allocation of
certain revenue and cost, the parties have agreed to enter into this Agreement with effect
from 1 October 2003 and in consideration of the mutual covenants and obligations herein
contained (the sufficiency of which is hereby acknowledged).

NOW IT IS HEREBY AGREED as follows:

	1.	 	INTERPRETATION AND EFFECTIVE DATE
	 
	1.1	 	Terms defined and expressions in respect of which a construction is given in the Technical
Services Agreement shall bear the same meaning or, as the case may be, construction when used
herein unless otherwise defined or given a construction herein except where the context
otherwise requires.
	 
	1.2	 	The parties hereby agree that this agreement shall take effect on and from 1 October 2003.
	 
	2.	 	REVENUE ALLOCATION

 

 

	 	 	CCT or CCT Shanghai may from time to time engage CCLX to provide services (including but
not limited to the provision of the satellite network equipment of CCLX) for its
customers (the “Engagement”). In the event that CCLX is engaged to provide services to a
customer of CCT or CCT Shanghai, CCT or CCT Shanghai, as the case may be, shall pay to
CCLX, up to 10% of the fees received by that customer or such other amount as determined
by CCT or CCT Shanghai, as the case may be, in its absolute discretion, in connection
with the Engagement.
	 
	3.	 	COST ALLOCATION
	 
	3.1	 	Subject to Clause 3.2, all the expenses incurred by CCLX in relation to its customer service,
IT support, network operation and finance functions, which are primarily staff costs and
administrative expenses, shall be allocated for the account of CCT or CCT Shanghai. The amount
to be reimbursed shall be determined by CCT or CCT Shanghai, as the case may be, in its
absolute discretion.
	 
	3.2	 	CCT or CCT Shanghai may vary the type of expenses it will reimburse CCLX for pursuant to
Clause 3.1.
	 
	3.3	 	Save for expenses to be reimbursed by CCT or CCT Shanghai in Clause 3.1 (the “Expense
reimbursement”), any other expenses incurred by CCLX that are relevant to servicing CCT and
CCT Shanghai (the “CCT Group”) and the direct customers of the CCT Group (including fees paid
to lease transponder bandwidth) shall be apportioned between the CCT Group on the one hand and
CCLX on the other hand, in accordance with the service revenue received by each of the CCT
Group and CCLX for the financial year ending 31 December. CCT Shanghai or CCT shall in its
absolute discretion determine conclusively the amount to be allocated at the end of each
financial year.
	 
	4.	 	SAVINGS
	 
	 	 	Save and except for the variations and amendments contemplated by this Agreement, the
Technical Services Agreement shall continue in full force and effect in all other
respects. Nothing in this Agreement shall vary any liability or obligation of any party
under the Technical Services Agreement other than to the extent specified herein. All
rights and benefits previously enjoyed by any party under the Technical Services Agreement
shall remain unaffected and undiminished except to the extent specified herein. In the
event of any conflict or inconsistency between the terms of this Agreement and the
Technical Services Agreement, the provisions of this Agreement shall prevail.
	 
	5.	 	COUNTERPARTS
	 
	 	 	This Agreement may be signed in any number of counterparts, all of which taken together
shall constitute one and the same instrument. Either party may enter into this Agreement by
signing any such counterpart and each counterpart may be signed and executed by the parties
and transmitted by facsimile transmission and shall be as valid and effectual as if
executed as an original.
	 
	5.	 	GOVERNING LAW

 

 

	 	 	The construction, validity and performance of this Agreement shall be governed in all respects by
the laws of the PRC.

 

 

IN
WITNESS WHEREOF this Agreement has been duly executed by the parties
hereto.

	 	 	 	 	 	 	 
	CHINACAST TECHNOLOGY (SHANGHAI) LIMITED
	 	 	 	 	 	
	 
	 	 	 	 	 
	The Seal of

	 	 	)	 	 
	CHINACAST TECHNOLOGY

	 	 	)	 	 
	(SHANGHAI) LIMITED

	 	 	)	 	 
	was hereunto affixed in the

	 	 	)	 	 
	presence of:

	 	 	)	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 Authorised Representative

	 	 	 	 	 	 	 
	CHINACAST TECHNOLOGY (BVI) LIMITED
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	The Seal of

	 	 	)	 	 	 
	CHINACAST TECHNOLOGY

	 	 	)	 	 	 
	(BVI) LIMITED

	 	 	)	 	 	 
	was hereunto affixed in the

	 	 	)	 	 	 
	presence of:

	 	 	)	 	 	 

	 	 	 	 	 
	 

	 	For and on behalf of	 	 
	 

	 	CHINACAST TECHNOLOGY (BVI) LIMITED	 	 
	 

	 	
 

Authorized Signature(s)
	 	 

                                                               
                
                 
            Authorised Representative

	 	 	 	 	 	 	 
	CHINACAST LI XIANG CO. LTD
	 	 	 	 	 	
	 
	 	 	 	 	 
	The Seal of

	 	 	)	 	 
	CHINACAST LI XIANG CO. LTD

	 	 	)	 	 
	was hereunto affixed in the

	 	 	)	 	 
	presence of:

	 	 	)	 	 
	 

	 	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	 	 	 

/s/ LIWEI
              
                        
                        
                             Authorised Representative

 

 

	 	 	 	 	 	 	 
	CHINACAST CO., LTD
	 	 	 	 	 	
	 
	 		 	 	 
	The Common Seal of

	 	 	)	 	 	 
	CHINACAST CO., LTD

	 	 	)	 	 	 
	was hereunto affixed in the

	 	 	)	 	 
	presence of:

	 	 	)	 	 	 

	 	 	 	 	 	 	 
	/s/ LIWEI
	 	Director
	 	 	 	 	 	 	 
	LIWEI

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	signed in the presence of:

	 	 	)

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