Common use of Cost and Payment Clause in Contracts

Cost and Payment. Due to the fact that (i) the license for the use of the Cellphone Games Software and the service provided by the Licensee are major parts that are indispensable for the commencement of the value-added telecommunication service business of the Licensee, (ii) the development of the value-added telecommunication service business provided by the Licensor to any terminal user is to a large extent dependent upon the quality of such software and its technical service, and (iii) the Licensor of the Cellphone Games Software has devoted a substantial amount of human and material resources on the development of the Cellphone Games Software and is required to provide the services and guarantees set forth in Clauses 1.2.1 to 1.2.3 to the Licensee during the term hereof on a long-term basis, the Licensor and the Licensee, after consultation, agree that the Licensee shall make the following payments to the Licensor in accordance with the requirements as follows: 3.1 During the license period of the Cellphone Games Software, the Licensee shall pay to the Licensor a software license fee and technical service fee which are equivalent to 50% of the actual revenue of a product arising out of the use of such Cellphone Games Software. 3.2 The actual revenue of the product shall be derived from the book sales revenue of the Licensee after deduction of the amount owed to mobile operators. The Licensee shall submit to the Licensor a statement of sales revenue regarding the Cellphone Games Software of the previous month within 7 days after the end of each month. 3.3 The Licensee shall, within one month after the expiration of this Agreement, continue to pay to the Licensor all the software license fees in connection with the revenues received prior to its expiration and which is payable but has not yet been paid under this Agreement.

Cost and Payment. Due to the fact that (i) the license for the use of the Cellphone Games Software and the service provided by the Licensee are major parts that are indispensable for the commencement of the value-added telecommunication service business of the Licensee, (ii) the development of the value-added telecommunication service business provided by the Licensor to any terminal user is to a large extent dependent upon the quality of such software and its technical service, and (iii) the Licensor of the Cellphone Games Software has devoted a substantial amount of human and material resources on the development of the Cellphone Games Software and is required to provide the services and guarantees set forth in Clauses 1.2.1 to 1.2.3 to the Licensee during the term hereof on a long-term basis, the Licensor and the Licensee, after consultation, agree that the Licensee shall make the following payments to the Licensor in accordance with the requirements as follows: 3.1 During the license period of the Cellphone Games Software, the Licensee shall pay to the Licensor a software license fee and technical service fee which are equivalent to 5065% of the actual revenue of a product arising out of the use of such Cellphone Games Software. 3.2 The actual revenue of the product shall be derived from the book sales revenue of the Licensee after deduction of the amount owed to mobile operators. The Licensee shall submit to the Licensor a statement of sales revenue regarding the Cellphone Games Software of the previous month within 7 days after the end of each month. 3.3 The Licensee shall, within one month after the expiration of this Agreement, continue to pay to the Licensor all the software license fees in connection with the revenues received prior to its expiration and which is payable but has not yet been paid under this Agreement.