Document:

Technology Development Contract

 English Translation 
 Exhibit 10.17 
 Contract Reg. No.: 

																													
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	 

 Technology Development Contract 
 Project Name: Editor System for Logical Framework Engine for Network Games 
 Trustor: Beijing Perfect World Network Technology Co., Ltd 
 (Party A) 
 Trustee: E-Pie Entertainment and Technology Co., Ltd 
 (Party B) 
 Place of Execution: Haidian District, Beijing Municipality 
 Date of Execution: January 1st, 2006 
 Validity Period: From January 1st 2006 to December 31st 2006 
 Beijing Technology Market Administration
Office 
  

 1 

 English Translation 
  

 Instructions 
 1. “Contract Reg. No.” will be filled in by the Technology Contract Registration Department. 
 2. “Technology
Development Contract” refers to a contract entered into by and between the parties for research and development of new technologies, new products, new processes and new materials and their systems. Technology development contracts also include
trusted development contracts and cooperative development contracts. 
 3. If it is a planned project, indicate it at the level of the department/commission
of the State Council, the province, the autonomous region, the municipality directly under the Central Government, the municipality directly under State planning, the municipality or the county. If it does not belong to any of the above levels,
check the blank space with (/). 
 4. Contents, scope and requirements of object technologies 
 Include the objectives, scope of use, technical and economic indicators and benefits of the development project. 
 5.
R&D plan 
 It includes the staged development progress of each party; technical problems to be solved at all stages; objectives to be achieved at all
stages; deadlines for all stages, etc. 
 6. Means for performing this Contract (including the means for submitting results and quantities thereof)

 1) Product designs, process specifications, formula of materials and other technical documents (drawings, papers, reports, etc);

 2) Disks, tapes and computer software; 
 3) New species of animals or plants; microbial cultures; 
 4) Samples and prototypes 
 5) Complete sets of equipment 
 7. Confidentiality of
technical information and materials 
 It includes the contents of confidentiality obligations of each party for information and materials; period of
confidentiality; liabilities for disclosure of know-how. 
 8. In this Contract, for any clause that will not be filled in, as agreed by both parties, check
the blank space with (/). 
  

 2 

 English Translation 
  

 As per the provisions of the Contract Law of the People’s Republic of China and through friendly negotiation
between Party A and Party B regarding the technology transfer of the project of Editor System for Logical Framework Engine for Network Games (this project is a / planT), the Contract is entered into by and between both parties. 
  

	I.	Contents, Scope and Requirements of Object Technologies 

 (I) A logical framework engine is established specifically for abstraction of the objective logical world in a game. It first abstracts the hardware environment in which the game operates and uses it as a part of the objective world of the
game. For example, both the network resources and keyboard resources are regarded by the game framework engine as a source of information input into the objective world of the game. The logical framework engine also abstracts the virtual objects in
the objective world in the game and defines the basic attributes of these objects, e.g. name, color, life, etc. These basic attributes describe the basic information on virtual objects that can logically interact with each other in the object world
of the game. In addition, the logical framework engine also describes the environments in the objective world of the game, e.g. time, place, weather, buildings, landforms, etc. At the same time, the logical framework engine also describes the
events, messages, commands, etc that drive the operation of the objective world of the game. In this way, with the support from the logical framework engine, you can complete the definition of a common objective world of the game with the basic
objective logical world functions. 
 The logical framework engine enables quick establishment of an objective world of the game through detailing the
attributes of virtual objects and other attributes in the logical framework and also enables the game programmers to focus on how to define the interaction between the objective world and virtual objects, thus ensuring the efficiency of game
development at the beginning. At the same time, this mature game framework engine also effectively ensures the correctness of the framework structure of the specific game program, thus avoiding major errors in designing specific game programs.

 AppWizard (.awx file) based on Visual Studio is used to test the common game framework. AppWizard can immediately generate a blank game program with
complete functional modules for all parts. 
 Another important content of the logical framework engine contains the definitions of a complete set of data
structures and a set of common algorithms. These algorithms can be used to solve the problems occurring in developing games, thus ensuring smooth execution of game program development activities. 
 (II) Purpose of development and scope of use: The game framework provides a basic framework needed for making games. A common game framework can be used to generate a
blank game program with complete functional modules for all parts. The process of using a common game framework to generate a specific game is gradually adding contents of the game to the blank game to develop a specific game. 
  

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 English Translation 
  

 AppWizard (.awx file) based on Visual Studio is used to test the common game framework. AppWizard can immediately
generate a blank game program with complete functional modules for all parts. 
 Details are as follows: 
  

	1.	Abstraction, definition and realization of hardware resources 

 This
includes abstraction, definition and realization of input devices (keyboard, mouse, serial port, network, etc), abstraction, definition and realization of output devices (display equipment, feedback mouse, voice card, network, etc), file storage
devices, file objects, directory objects, resources package objects, etc. 
  

	2.	Abstraction, definition and realization of attributes and actions of virtual objects 

 This includes the attributes of virtual objects, e.g. name, color, life value, quality, position, direction, speed, acceleration, position of center of gravity, bounding box, etc; actions of virtual objects, e.g.
birth, death, operation, movement, reaction to external force, etc. 
  

	3.	Abstraction, definition and realization of environmental attributes 

 This
includes the scope of the objective world, the virtual geographical locations, the attributes of the sky, time, weather attributes, information on buildings and landforms, etc. 
 (III) Technical and economic indexes and benefits 
 For this project, economic benefits are the most important.
However, it has a very outstanding capability to drive the downstream industries. At present, the driving capability is estimated to be 1:100, namely for every RMB1 Yuan in income generated by the engine itself, the downstream industries (from
development through to operation and advertisement) will produce RMB100 Yuan in sales. Control of the core capabilities enables domestic enterprises to engage in in-house developments. 
 For clauses marked with “T”, please fill in as per the requirements of the instructions. 
  

	II.	Technical Indexes and Parameters to Be Achieved 

  

	1.	Algorithms for collision detection 

 Collision
detection is the basis for determining if any interaction exists between objects and between objects and environments in the game. So the logical framework engine must be able to provide a complete set of collision detection algorithms. Depending on
the different accuracies to be achieved in collision detections, the logical framework engine shall the following collision detection algorithms: 
  

	 	•	 	 Algorithm for detecting collisions between rays and triangles 

  

	 	•	 	 Algorithm for detecting collisions between rays and OBB as well as AABB 

  

	 	•	 	 Algorithm for detecting collisions between OBB or AABB and triangles 

  

	 	•	 	 Algorithm for detecting collisions between OBB or AABB and OBB or AABB 

 Criteria of algorithms: accurate and quick. 
  

	2.	IK Solver of the Bone System 

 IK Solver is used to solve
the reverse kinematics of the Bone System by getting the should-be status of the whole body on basis of the given position of the end node (e.g. hand or foot), so the actions of the human body can be directly generated by designating the position of
the hand or foot, thus rapidly and dynamically control human actions in the game. 
  

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 English Translation 
  

	3.	Algorithms for physical mechanics 

 The engine must
be able to provide a dynamics solvers based on mass point systems to solve the kinetic simulation for mass point systems and spring systems. These algorithms can be used to simulate the effects of cloth, hair, etc. At the same time, the engine must
also be able to provide dynamics solvers based on rigid-body models for dynamics solutions for big objects under the action of external forces. These algorithms can be used to perform solutions for human bodies based on biomechanics models so as to
calculate the performances of human bodies under the action of any external force and enhance the interactivity of operations performed on figures in games. 
 Criteria for evaluation of algorithms: These algorithms must be efficient and quick, but they are not required to provide physically accurate results. It is OK only if the calculation results meet the perpetual knowledge of people.

  

	4.	Automatic model simplification algorithms 

 In order to process
extra large scenes, some automatic simplification algorithms must be applied to the objects, landforms and buildings in the scenes to remove undistinguishable details from distant objects, thus reducing the processing work of the engine, improving
the processing speed of the engine and enhancing the interactivity of games. These simplification algorithms are the following two: 
  

	 	•	 	 Automatic simplification algorithm independent of model view points (LOD) This automatic simplification algorithm is used to add or delete meshes that form the
model, depending on the distance between the model and the viewpoint. When the distance gradually increases, the algorithm will gradually remove the undistinguishable details. The algorithm is independent of the viewpoints, so the model
simplification results can be calculated at the pre-processing stage. When the game operates, what you need to do is use these pre-processed results. 

  

	 	•	 	 Real-time optimized adaptive model simplification algorithm based on view points This algorithm is mainly used to simplify outdoor landforms. It can automatically
determine the accuracies of the meshes of landform models on basis of the position of the current viewpoint and at the same ensure that the difference between the results before and after simplification is smaller than the given threshold value.

 Criteria for evaluation of algorithms: The smaller the difference between the simplified results and the imaging results of the original
model on the screen and the bigger the simplification ratio are, the better the effect will be. 
  

	5.	Clipping algorithms 

 Usually the game scenes to
which the final game pictures we see on the screen correspond only take up a fraction of the whole game world. However, in order to generate the game pictures, we often have to process the whole game world, thus wasting a lot of processing time of
the hardware. The clipping algorithms use· a series of quick judgment operations to only extract the game scenes that will finally appear on the screen and give them to the hardware for processing, thus significantly reducing the time needed
for generating the final game pictures. These algorithms mainly include: 
  

	 	•	 	 Viewpoint clipping algorithm 

  

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 English Translation 
  

	 	•	 	 OBB or AABB visibility judgment 

  

	 	•	 	 Clipping algorithms based on such algorithms as Portal, etc 

  

	 	•	 	 Shelter clipping (used at the pre-processing stage) 

 Criteria for evaluation of algorithms: Speed is an important criterion for judging the clipping algorithms. With the development of hardware, the hardware acceleration card continuously improves the speed of clipping
triangles. If the speed of the clipping algorithms of the engine cannot match the speed at which the hardware acceleration card clips triangles, it is better not to use it. Another important indicator for evaluating clipping algorithms is the
clipping efficiency. This can be evaluated by using the ratio of the invisible triangles included in the post-processing results against all the triangles in the post-processing results. The smaller the ratio is, the better it will be. However, in
order to comprehensively consider the processing speed of the algorithm, this ratio cannot be zero (“0”). 
  

	6.	Analog algorithms for natural phenomena 

 Natural phenomena, e.g.
rain, snow, lightning, etc, need to use the program’s algorithms to achieve enough natural realism. So the engine must provide analog algorithms for these natural phenomena to help introduce these natural phenomena into the final game.

 Criteria for evaluating these algorithms: Real and natural. 
  

	7.	Algorithms for managing and dispatching blocks resources 

 The engine must provide complete algorithms for managing and dispatching blocks so that the engine can allow the games to load blocks whose quantity exceeds that displayed/stored in the hardware acceleration display card, thus greatly
improving the richness of the game scenes. 
  

	8.	Algorithms for managing and dispatching models resources 

 The models resources in the engine will be reused, which means that there is only one copy of models resources that can be referenced and used by multiple sites. This requires that the engine have complete algorithms for managing and
dispatching models resources. 
 Criteria for evaluation of algorithms: Stable and efficient. 
  

	9.	Algorithm for static lighting pre-processing of buildings based on the Global Lighting Algorithm 

 This algorithm enables pre-processing of lighting of buildings based on the Global Lighting Algorithm to generate real and natural static lighting and
shadow effects. The static buildings generated through such algorithms are highly realistic. The Global Lighting Algorithm can be based on radiosity or on photons. 
 Criterion for evaluation of algorithm: The Global Lighting Algorithm is usually used to pre-process algorithms, so its speed is acceptable if it is usable. The criterion for evaluating such algorithms is that the final lighting results are
similar to the real-world lighting results. The closer the lighting results are to the real-world results, the better the algorithm is. 
  

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 English Translation 
  

	10.	Geometry Pipeline (Include Texture Coord. Mod) 

 Geometry Pipeline is responsible for processing the structural data of the model vertexes and triangles to generate a list of triangles that are finally transmitted to the hardware acceleration card. Through this flow line, one model can be
quickly transferred to the hardware acceleration card for rendering or be modified (e.g. various variants and new coordinates for the blocks of the environment) by using a tailored algorithm to generate a model with special effects. In addition,
VertexShader can also be directly used to influence the appearance of a model. 
  

	11.	Lighting Pipeline 

 Lighting Pipeline is responsible
for processing the lighting data needed for rendering. It can create and use the lights supported by the hardware acceleration card for lighting and use the tailored algorithm to perform special lighting calculations. In addition, it can also use
VertexShader and Pixelshader to perform specific lighting calculations. 
  

	12.	Texture Pipeline 

 Texture blocks can be combined
and processed through this flow line to finally generate dynamic and brand-new texture blocks. The basic function of this flow line is to directly transmit the textures at various layers to the hardware acceleration card. At the same time this flow
line can also modify the texture at a certain layer (e.g. updating it by using the RenderToTexture). Besides, this flow line can also use Pixelshader to modify the process of the hardware for mapping blocks, thus achieving various special rendering
effects. 
  

	III.	R&D PlanT 

 Project Progress Schedule 
  

					
	 Project Stage
	  	 Time
	  	 Technical Problems To Be Solved or
Objectives To Be
Achieved

	Common data structure and algorithms	  	January 1st 2006 to Feb.28th 2006	  	Complete definition and realization of dynamic array, chained list, queue, quadtree, octree and graph; complete algorithms for sequencing, binary search, hash storage, etc
			
	Abstraction, definition and realization of the world run dynamics	  	March 1st 2006 to April 30th 2006	  	Complete definition and realization of time, message, command, etc
			
	Abstraction, definition and realization of hardware resources	  	May 1st 2006 to June 30th 2006	  	Complete definition and realization of related various kinds of hardware devices
			
	Abstraction, definition and realization of the attributes and actions of virtual objects	  	July 1st 2006 to Oct.31st 2006	  	Complete definition and realization of the attributes and actions of basic virtual objects
			
	Abstraction, definition and realization of environmental attributes	  	Nov.1st 2006 to Dec.31st 2006	  	Complete definition and realization of the environmental attributes

  

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 English Translation 
  

	IV.	R&D Expenses and Remunerations and Payment or Settlement Method 

  

	 	(I)	R&D expenses refer to the costs needed for completing the research and development of this project; remunerations refer to the royalty for using the research and development
results of this project and the subsidies for the researchers and developers. 

 Amount of research and development expenses of
this project (in words): Renminbi one million eight hundred and eighty thousand Yuan ONLY, including Renminbi one million four hundred and ten thousand Yuan in expenses and Renminbi four hundred and seventy thousand in remunerations. 
  

	 	(II)	Method for payment 

  

							
	�	  	Pay	  	Yuan in one lump sum on (time)	  	
				
	‚	  	Pay in installments	  		  	
			
		  	Renminbi four hundred thousand Yuan on February 28th 2006	  	
			
		  	Renminbi five hundred thousand Yuan on May 31st 2006	  	
			
		  	Renminbi five hundred thousand Yuan on August 31st 2006	  	
			
		  	Four hundred and eighty thousand Yuan on Nov.30th
2006	  	
			
	ƒ	  	Take commission at a rate of	  	% of the profit for the period from              to            
 
			
	„	  	Take commission at a rate of	  	% of the profit for the period from              to            
 
				
	...	  	Other means:	  		  	

  

	V.	Ownerships of equipment, devices and materials procured with the R&D expenses 

 The ownerships of equipment, devices and materials procured by Party B with the R&D expenses belong to Party B. 
  

	VI.	Deadline, Place and Means for Performance 

 Within 5 days after
Party B finishes the “Project Progress Schedule” shown in Article III of the Contract, Party B shall provide Party A the following technical information and materials by in-person delivery in Haidian District, Beijing: 
  

	 	1.	User requirements files for this system 

  

	 	2.	General design files of this system 

  

	 	3.	List of core technologies used in this system 

  

	 	4.	Detailed manual for core technologies of this system 

  

	 	5.	Descriptions of core algorithms of this system 

  

	 	6.	Detailed designs files for all parts of this system 

  

	 	7.	Source codes for the programs of core algorithms of this system 

  

	 	8.	Source codes of the sub-programs of all functions of this system 

  

	 	9.	Electronic version of user’s instructions of this system 

  

	 	10.	Common troubles of this system and programs for eliminating them 

  

	 	11.	Other technical documents deemed by both parties as necessary 

  

	VII.	Confidentiality of Technical Information and MaterialsT

 Within twenty years after the execution of this Contract and within the boundary of the 

  

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 English Translation 
  

 
People’s Republic of China, Party A shall keep confidential the following technical information and technical materials provided by Party B: the general
system design, core technologies, source codes of programs, core calculations and other technical information and materials. Without prior written consent from Party A, Party B shall not provide any third party any relevant general system design,
core technologies, source codes of programs, core calculations or any other technical information or materials involved in this Contract. If any party fails to perform its obligations of confidentiality, the breaching party shall be responsible and
liable for all the resulting losses sustained by the non-breaching party. 
  

	VIII.	Contents of Technical Collaboration and Technical Directions 

 Party
B shall be responsible for training 10 ordinary technicians of Party A. The training shall enable the people of Party A to install, use, debug and trouble shoot the system in an experienced manner. The training time shall not be less than 10 working
days. The training shall be held in Beijing. Party B shall be responsible for paying for the foods and accommodation for the people of Party A when they stay in Beijing. 
 Party B shall be responsible for training two core technicians of Party A. The training shall enable the people of Party A to grasp the overall design, core algorithms and core technologies of the system in an
experienced manner and to understand the core program codes. The training time shall not be less than 10 working days. The training shall be held in Beijing. Party B shall be responsible for paying for the foods and accommodation for the people of
Party A when they stay in Beijing. 
  

	IX.	Ownership and Sharing of Technical Results 

 (I)
Patent application Right: After paying the transfer fee, Party A shall have the right to modify and upgrade the product and to apply for patent rights and other intellectual property rights in its own name; 
 (II) Use Right and Transfer Right of know-how: For the purpose of this Contract, “subsequent improvements” refers to innovations and/or
improvements made by either party or both parties hereto to the know-how as the object of this Contract during the term hereof. It is agreed by both parties that Party B will be responsible for subsequent improvements of the know-how as the object
of this Contract and will own the results of such subsequent improvements. 
  

	X.	Criteria and Method for Acceptance 

 After all the technical indexes
listed in Article II herein have been achieved, acceptance inspection shall be conducted as per the criteria jointly formulated by both parties by means of an acceptance verification meeting. The technical project acceptance certificate shall be
issued by Party A. 
  

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 English Translation 
  

	XI.	Sharing of Risks 

 Each of Party A and Party B shall
be responsible for 50% of the losses caused by partial or complete failure of this research and development project due to technical difficulties that may arise in the course of performing this Contract and that cannot be overcome under the current
technical levels and conditions. 
 Both parties shall confirm if this Contract is performed as per the “Project Progress Schedule”
shown in Article III on basis of the “criteria for acceptance” as described in Article X herein. 
 XII. Calculation of liquidated damages

 When this Contract is breached, the breaching party shall bear the liabilities in accordance with relevant provisions of the Contract Law of the
People’s Republic of China. 
  

	(I)	If Party B breaches any provision of Article III herein, Party B shall bear the following liability: 

 Party B shall pay to Party A an amount of Renminbi ten thousand only (RMB10,000) as the liquidated damages for each of the delayed days. 
  

	(II)	If Party A breaches any provision of Article IV herein, Party A shall bear the following liability: 

 Party A shall pay to Party B an amount of Renminbi ten thousand only (RMB10,000) as the liquidated damages for each of the delayed days. 
 XIII. Means for Settlement of Disputes 
 Any dispute arising during
performing this Contract shall be settled through reconciliation or mediation between both parties. In case reconciliation or mediation fails to solve it, it may be solved through arbitration or any judicial procedure. 
 (I) It is agreed by both parties to submit the dispute to Beijing Haidian District Arbitration Commission for arbitration; 
 (II) It is agreed by both parties to submit it to the people’s court (at the domicile of the defendant, the place of performance, the place of
execution, the domicile of the plaintiff or the place of the object). 
  

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 English Translation 
  

	XIV.	Interpretation of Terms and Terminologies 

  

	XV.	Others 

 It is hereby guaranteed by Party B that it
has independent and legal copyrights for the trusted development project and does not infringe any of the intellectual property rights (patent rights, copyrights, etc) of any third party. 
  

 11 

											
	 Trustor (Party A)
	  	Name	  	Beijing Perfect World Network Technology Co., Ltd.	    	 Technology
 Contract Seal
 Or
 Corporate
 Seal [Seal:
 Beijing
 Perfect World
 Network
 Technology
 Co., Ltd.]
  
 MM DD YY

		  	  
 Legal Rep
	  	  
 Chi Yufeng
	    
		  	  
 Authorized
 Agent
	  	  
 (Signature and Seal)    /s/ Chi
Yufeng            
	    
		  	  
 Contact
 (Handler)
	  	  
 Zeng Yingxue
	    
		  	  
 Domicile
 (Mailing Add)
	  	  
 Tsinghua University
 Post Office, Beijing,
 P.O. Box 84-145
	  	  
 Zip Code
  
  
	  	  
 100085
	    
		  	  
 Tel
	  	  
 58858205
	  	  
 Fax
	  	  
 58858218
	    
		  	  
 Opening Bank
	  	  
 China Construction Bank, Shangdi Branch
	    
		  	  
 A/C NO.
	  	  
 11001045300053001380
	    
				
	Research & Developer (Party B)	  	Name	  	E-Pie Entertainment and Technology Co., Ltd	    	 Technology
 Contract Seal
 Or
 Corporate
 Seal [Seal:E-Pie
 Entertainment
 and
 Technology
 Co., Ltd.]

		  	  
 Legal Rep
	  	  
 Wang Tongyan
	    
		  	  
 Authorized Agent
	  	  
 (Signature and Seal)    /s/ Wang
Tongyan                
	    
		  	  
 Contact (Handler)
	  	  
 Niu Yuekun
	    
		  	  
 Domicile (Mailing Add)
  
	  	  
 A-702-17, Yingchuangdongli Building, No.1 of Shangdi (E) Road, Haidian
District, Beijing
	  	  
 Zip Code
  
	  	  
 100085
	    
		  	  
 Tel
	  	  
 58858263
	  	  
 Fax
	  	  
 58858263
	    
		  	  
 Opening Bank
	  	  
 China Construction Bank, Tsinghua Park Branch
	    
		  	  
 A/C NO.
	  	  
 6510005092610032127
	  		  		    

  

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 English Translation 
  

 Paste Stamp Tax Receipts Here 
  

							
	Examination and Registration Column for Registration Authority:	  	
				
	 Handled By:
	 		 		  	Technology Contract Registration Authority (Special Seal)
				
		 		 		  	[Seal: Beijing Technology Market Administration Office]
				
		 		 		  	March 9th, 2006

  

 13 

 English Translation 
 Supplementary Agreement to Technology Development Contract 
 Party A: Beijing Perfect World Network Technology Co.,
Ltd. 
 Party B: E-Pie Entertainment and Technology Co., Ltd. 
 WHEREAS Party A and Party B have signed the Technology Development Contract for the Editor System for Logical
Framework Engine for Network Games on January 1st 2006, NOW THEREFORE it is hereby agreed by both parties to
modify the Technology Development Contract as follows: 
 I. It is confirmed by both parties that the progress of performing the Technology Development
Contract as of April 30, 2006 is as follows: Party A duly paid to Party B an amount of RMB 555, 302.07 in project R&D expenses and remunerations and Party B duly completed all the research work ended at the stage of abstraction, definition
and realization of the world run dynamics. Thereafter, it was orally agreed by both parties not to continue performing the Technology Development Contract. Now it is hereby agreed by both parties to terminate the Technology Development Contract and,
unless otherwise agreed in this Agreement, all the rights and obligations of both parties under the Technology Development Contract are automatically terminated. 
 II. Ownerships of Technical Results 
 In order to further define the
ownerships of relevant intellectual property rights, it is hereby agreed by both parties that all the copyrights and intellectual property rights resulting from Party A and/or Party B performing the Technology Development Contract on and from the
day (January 1st 2006) on which the Technology Development was signed belong to Party A. The above agreement is
retrospective and completely replaces the provisions of Article IX of the Technology Development Contract on intellectual property rights. It is guaranteed by Party B that its execution and performance of the Technology Development Contract and this
Agreement does not infringe on any of the intellectual property rights (patent rights, copyrights, etc) of any third party. Party A shall forever keep confidential the intellectual property rights and other confidential information of Party A.

  

									
	Party A: Beijing Perfect World Network Technology Co., Ltd.	 	 	 	Party B: E-Pie Entertainment and Technology Co., Ltd.
			
	[Seal: Beijing Perfect World Network Technology Co., Ltd.]	 		 	[Seal: E-Pie Entertainment and Technology Co., Ltd.]
					
	Signature:	 	 /s/ Chi Yufeng
	 		 	Signature:	 	 /s/ Wang Tongyan

			
	Date: April 4, 2007	 		 	Date: April 4, 2007Premises Lease Contract

 Exhibit 10.18 
 English Translation 
 Premises Lease Contract 
 Party A: Beijing Human Edu-Tech Co., Ltd. 
 Party B: Beijing
Perfect World Network Technology Co., Ltd. 
 In accordance with the “Contract Law of the People’s Republic of China” and
related laws and regulations, Party A and Party B, abiding by the principle of equality, free will, fairness and credibility and through friendly negotiations, hereby enter into this Contract with respect to Party B leasing the Premises defined
below (for office purpose) from Party A, on and subject to the terms and conditions as set forth below: 
 Article 1 Location and Area of the Premises

 Party A will lease its Premises located at A702, Yingchuang Dongli, 1 Shangdi
East Road, Haidian District, with a floor area of 1200m2 (“the Premises”) to Party B for office purpose.

 Article 2 Ownership of the Premises 
 Within the effective term of this Contract, Party A has the ownership and management right of the Premises and Party B has the use right of the Premises. Within the effective term of this Contract, Party B shall not transfer, sublet or
mortgage the Premises. Otherwise, Party A is entitled to repossess the Premises, forfeit the security deposit and terminate this Contract. 
 Article 3
Purpose of the Premises 
 Party B shall only use the Premises for office purpose, e.g. R & D, production, etc. 
 Article 4 Lease Term 
 The lease term of the Premises
is one year, i.e. from January 1, 2005 to December 31, 2005. Upon expiry of lease term hereof, if Party B renews the lease, it shall have the right of first refusal under equal conditions. 
 Article 5 Payment of Rental and Other Expenses 
 1. The daily rental of the Premises is RMB 3/m2, i.e. annual rental is RMB 1,296,000. Rental shall be paid every three months, i.e. RMB 324,000. Party B shall pay the first installment to Party A within 5
days prior to the commencement date of lease (i.e. January 1, 2005). Each of subsequent installments shall be paid within 5 days prior to the expiry of previous installment. 
 2. During the lease term, Party A shall bear property management expenses, water fee(except water used for non-normal office purpose of Party B) and air
conditioning fee (including steam fee and air conditioning electricity fee); Party B shall bear its own electricity fee (including the allocations of the basic electric power capacity fee and other property-related electricity fees corresponding to
the floor area of the Premises) and fee of water used for non-normal office purpose, and electricity fee shall be directly paid to Yingchuang Property Management Department on a monthly basis. 
  

 1 

 English Translation 
  

 3. Party B shall bear its own telephone, broadband and other expenses. 
 4. Party A shall issue a receipt to Party B upon receipt of each installment and a tax-paid invoice at year end. Related real estate tax shall be borne
by Party A. 
 Article 6 Security Deposit 
 1. Security deposit paid by Party B to Party A for previous contractual term shall be held by Party A temporarily and remain served as the security of the performance of this Contract. Security deposit is the equivalent of one month’s
rental, i.e. RMB 108,000. 
 2. Within the lease term, Party B shall not offset the rental or the other expenses as set forth herein with the
deposit hereof, transfer the deposit to any third party as a claim or use it as the security for debts. 
 3. Upon expiry of this Contract,
where Party B is involved in delayed payment of rental or other event of default, deposit may not be refunded. If the deposit cannot cover the debts under this Contract, Party B shall further bear any and all losses thus incurred to Party A.

 4. Upon expiry of this Contract, Party A shall refund deposit to Party B within three days after Party B has fully performed the
provisions of this Contract and settled up all expenses. 
 Article 7 Overdue Fee 
 Where Party B delays payment of rental and other expenses, it shall pay to Party A an overdue fee at a daily rate of 0.5% of the overdue amount. Where
failure to make payment lasts for more than 10 days (inclusive), Party A shall be entitled to terminate this Contract, repossess the Premises and forfeit the deposit as liquidated damages. 
 Article 8 Party A’s Rights and Obligations 
 1.
Party A shall ensure that the Premises and basic public facilities are in good conditions. 
 2. Party A’s air-conditioning decorations
have been carried out according to the scheme approved by Party B for previous lease term. If room temperature cannot meet Party B’s needs with the increase of Party B’s employees and office facilities, Party B may appropriately add
air-conditioning facilities upon Party A’s consent, with expenses thus incurred to be borne by Party B. 
 3. The power capacity
configuration of Party A’s Premises is the basic configuration provided by the developer at the time of purchase. Where power capacity cannot meet Party B’s needs with the increase of Party B’s employees and office facilities, Party B
may appropriately expand capacity upon Party A’s consent and Party B shall be responsible for the expenses as well as the coordination with the property management department and the power department. 
 4. Repair of the Premises is the responsibility of Party A. Party A shall regularly check and timely repair the Premises and its equipment, ensure no
leakage and flooding, three 

  

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 English Translation 
  

 
connections ( water supply, discharge and lighting electricity) and guarantee that doors and windows are in good conditions so as to assure Party B’s
safe and normal use. Party B shall be responsible for the facilities added by itself. 
 5. Party A shall provide the copy of real estate
right certificate to Party B. 
 Article 9 Party B’s Rights and Obligations 
 1. When this Contract is signed, Party B shall present the photocopy of “Business License of Enterprise Legal Person” (duplicate) and ID card of
legal representative, “Power of Attorney” and other relevant documentary evidences to Party A. 
 2. Within the lease term, Party B
shall operate in accordance with relevant government regulations, not engage in the operating activities violating the state regulations governing industry, commerce, public security and fire prevention and those not approved by the competent
authorities and not violate the management regulations of Yingchuang Property. 
 3. Within the lease term, Party B shall well preserve and
use the original equipment and facilities in the Premises. In the case of any damage or loss, Party B shall be liable for compensations. 
 4. Within the lease term, Party B shall protect the floors, walls and cement pillars of the Premises and not drill or nail them without Party A’s permission. In case of any damage, Party B shall be liable for compensations. 

5. Within the lease term, If Party B adds or changes air conditioning facilities or increases power capacity with Party A’s consent, it shall be
responsible for the expenses, construction and coordination with property management and other departments. Upon expiry of this Contract, Party B shall restore the Premises to its original status before handover to Party A. 
 6. The maintenance of the toilets and sanitary facilities commonly used by both parties is the responsibility of both parties. In this regard, Party B
shall educate and manage its employees. 
 7. Party B can use Party A’s meeting room free of charge when it is not used by Party A.

 Article 10 Force Majeure 
 1. Within
the lease term, should either party be prevented from performing all or part of this Contract owing to events of force majeure specified by laws or unpreventable events, the prevented party shall not be liable to the other party. If this Contract
cannot be performed owing to an event of force majeure, neither party shall be liable for the losses thus incurred to the other party and this Contract shall be automatically terminated. Rental is based on the actual duration of lease. Overpayment
shall be refunded and underpayment shall be supplemented. 
 2. Both parties shall fully perform the provisions of this Contract. In case of
any breach, the breaching party shall pay liquidated damages to the other party and compensate for the operational losses of the other party. 
 Article
11 Change and Termination 
 1. If Party A transfers the ownership of the Premises to any third party according to statutory procedures,
this Contract shall bind upon the transferee, unless otherwise specified. 
  

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 English Translation 
  

 2. If Party A sells the Premises, it shall give a prior three month written notice to Party B. Under
equal conditions, Party B shall have the preemptive right. 
 3. Where Party B intends to exchange the Premises with any third party, Party
A’s prior consent shall be obtained. Party A shall support Party B’s reasonable requirements. 
 4. Where Party B fails to pay the
rental and other expenses on time or violates any provision of this Contract, or its operating activities violate laws and regulations and relevant government department orders it to stop these activities or it is sequestrated, Party A may:

 1) request Party B to pay up the rental and other expenses payable in time; 
 2) terminate this Contract and repossess or require to repossess the Premises. 
 Article 12 Miscellaneous 
 1. In case of anything not covered herein, Party A and Party B may sign a
supplementary agreement through friendly negotiations, which shall have the same legal effect as this Contract. 
 2. Any dispute arising
from or out of the performance of this Contract shall be settled by Party A and Party B through negotiations. In case no settlement can be reached, a lawsuit may be brought with the local people’s court in accordance with law. 
 3. This Contract is executed in quadruplicate, with each party hereto holding two copies. This Contract shall become effective after it is signed and
sealed by both parties. 
 Party A: Beijing Human Edu-Tech Co., Ltd. (seal) 
 By: [Seal: Beijing Human Edu-Tech Co., Ltd.] 
 Signing date: 
 Party B: Beijing Perfect World Network Technology Co., Ltd. (seal) 
 By: [Seal: Beijing Perfect World Network Technology Co.,
Ltd.] 
 Signing date: 
  

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