Document:

Software License Agreement dated September 20, 2004

 Exhibit 10.22 
  
 Confidential 
  
 SOFTWARE LICENSE AGREEMENT 
  
 THIS SOFTWARE LICENSE AGREEMENT (this “Agreement”) is entered into this 20th day of September, 2004 by and between Hanbitsoft, Inc., a Korean corporation
organized and existing under the laws of the Republic of Korea, having its principal office at Specialty Construction Center 25F, 395-70, Shindaebang-2dong, Dongjak-gu, Seoul, Republic of Korea, IMC Games, Co., Ltd, a Korean corporation organized
and existing under the laws of the Republic of Korea, having its principal office at 303, Seocho Hanshin Living Tower Bldg, 1533 Seocho-Dong, Seocho-Gu, Seoul, Korea 137–871 (“Licensor”) and Gamenow.net HK Limited, a company
incorporated, organized and existing under the laws of Special Administrative Region of People’s Republic of China, having its principal office at 30/F CITIC Square, No. 1168, Nanjing Road (w), Shanghai, P.R.China. (“Licensee” or
“GN”). 
  
 RECITALS 
  
 WHEREAS, Licensor possesses exclusive license and represents for the trademarks, copyrights,
patents and other certain considerable know-how in the field of design, manufacturing, installation and safe of the Licensed Program(both defined here below) and every legal concern regarding the Licensed Program is fully empowered to Licensor, and

  
 WHEREAS, Licensee desires to license such computer program for operating
online game service in the Territory and Licensor is willing to grant to Licensee an exclusive license for such purposes on the terms and conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the mutual agreements and covenants contained herein and intending to be legally bound thereby, the
parties agree as follows: 
  
 Unless otherwise defined in the context, the word
“Licensor” shall indicate both “Hanbitsoft” and “IMC Games Co., Ltd”. 
  
 1 Definition 
  
 For the purpose of this
Agreement: 
  

	1.1	“Affiliates” shall mean The9 Computer Technology Consulting (Shanghai) Co., as defined in Section 2.6 below. 

  

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	1.2	“Commercial Launch Date” shall mean the date when Licensee commercially launches the Licensed Program and start charging from the Subscribers within the
Territory. 

  

	1.3	“Confidential Information” means information that (i) is confidential to the business of a party, including but not limited to, computer software source
code, technical documentation and information regarding proprietary computer systems, marketing and product development plans, financial and personnel information, and other business information not generally known to the public, and (ii) is
designated and identified as such by a party. 

  

	1.4	“Derivative Works” shall mean: (i) for material subject to copyright, registered or unregistered design protection, any work which is based on one or more
preexisting works of the localized Licensed Program, such as revision, modification, improvement, upgrades, translation, abridgment, condensation, expansion, collection, compilation or any other form in which such preexisting works may be recast,
transformed or adapted; and (ii) for material subject to trade secret protection, any new material, information or data relating to and derived from the Licensed Program, including new material which may be protected by copyright, patent or other
proprietary right, and, with respect to each of the above, the preparation and/or use of which, in the absence of this Agreement or other authorization from the owner, would constitute infringement under applicable law. 

  

	1.5	“Designated Locations” shall mean the particular locations where Server Software are permitted to be used pursuant to the terms and conditions of this
Agreement. 

  

	1.6	“Effective Date” shall mean the date on which this Agreement is executed by Licensor and Licensee. 

  

	1.7	“Error”(or “bug”) shall mean a defect in the code or routine of the Licensed Program making the hardware or software non-operational or
mal-functional. 

  

	1.8	“Game Cards” shall mean the tangible or intangible cards (including, but not limited to prepaid card) containing a unique code (or other unique mark)
purchased by Subscribers to play the Licensed Program. Licensee hereby is granted the exclusive rights to generate such cards according to the sales and marketing needs subject to article 8.1 (g). 

  

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	1.9	“Game Service” shall mean the online game service to the Subscribers in the Territory utilizing the Licensed Program and the Licensed Materials.

  

	1.10	“Game Title” shall mean the name of an online game which is developed by Licensor and licensed to Licensee under this Agreement.

  

	1.11	“Gold Master CD” shall mean a CD-ROM on which a localized version of the Client Software (as defined below) is recorded and which is delivered to Licensee
for reproduction, sale and distribution to the Subscribers. 

  

	1.12	“Improvement(s)” shall mean modifications, enhancements, updates, or other non-material changes to the Licensed Program and the Licensed Materials.

  

	1.13	“Intellectual Property” shall mean (i) patents, trademarks, service marks, trade and business names, logos, slogans, characters and designs, whether
registered or not, and (ii) copyright, know-how, Confidential Information, domain names and any other similar rights protected in any country. 

  

	1.14	“License Fee(s)” shall mean cash payments made by Licensee to Licensor other than royalties and Minimum Guarantee, at the time of execution of this
Agreement, on Open Beta Service Date, Commercial Launch Date and meet the requirements of MACU. 

  

	1.15	“Licensed Materials” shall mean all system and user documentation pertaining to the Licensed Program including, but not limited to the design or
development specifications, support program and related technical textual and/or pictorial matter. All Improvements of such materials are also included in the definition of “Licensed Materials”. 

  

	1.16	“Licensed Program” shall mean the online game computer program in machine readable object code only (i) which is developed by IMC with the name used
in Korea as Granado Espada (hereinafter as “GE”), and (ii) which consists of Server Software and Client Software. Any Improvements made to the Licensed Program are also included in the definition of “Licensed Program” as referred
in Exhibit (A). 

  

	1.17	“Marks” shall mean trademarks, service marks, trade and business names, logos, slogans, characters or other properties that are used on or in association
with the Licensed Program and the Game Service, whether registered or not, including but not limited to those specified in Exhibit (A) attached to this Agreement. 

  

	1.18	“Monthly Average Concurrent Users” shall mean the number of average concurrent users of the Licensed Program in any one month of the first year
commencing from the Commercial Launch date (hereinafter as “MACU”). Calculation for MACU shall be subject to an hourly and simple average basis. 

  

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	1.19	“Object Code” shall mean the directly executable program in binary code derived from Source Code using a compiler or otherwise. 

  

	1.20	“Open Beta Service Date” shall mean the date when Licensee launches the beta version of the Game Service to general public in the Territory.

  

	1.21	“Purchased-but-not-charged cards” shall mean the Game Cards purchased by the end users, but not charged to the end users’ Game account.

  

	1.22	“Servers” shall mean computers with the Server Software installed therein at the designated Locations, including but not limited to, Web servers and
game servers which are required for online gaming. 

  

	1.23	“Server Software” shall mean a computer program in regard to the Licensed Program which are installed in Servers. 

  

	1.24	“Source Code” shall mean all material necessary to enable a programmer of reasonable skill and experience to maintain and enhance software, including
but not limited to, logic, logic diagrams, flow charts, orthographic representations, algorithms, routines, sub-routines, utilities, modules, file structures, coding sheets, specifications and the program instructions. 

  

	1.25	“Subscribers” shall mean persons who are allowed to connect to the Servers in order to play the Licensed Program in the Territory. The Subscribers
consist of Paying Subscribers and Free Subscribers. 

  

	1.26	“Territory” shall mean the People’s Republic of China, including but not limited to Hong Kong SAR and Macau, excluding Taiwan.

  

	1.27	“Upgrade Version” shall mean an online game which is developed by Licensor as a subsequent version (not a sequel) of the Licensed Program which uses
the same title with the Licensed Program. 

  

	1.28	“Charged Game Cards” shall mean the Subscribers charge their account through GN or the Affiliates’ payment system after they purchase the Game Card.

  
 2 Grant of Licenses 

 
 2.1 Use of Licensed Program Subject to the terms and conditions contained
in this Agreement, Licensor grants Licensee an exclusive, non-transferable, non-sublicensable and royalty bearing right and license to do the following within the Territory, provided that such exclusive licensor shall be exclusive even against the
Licensor. 
  

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 (a) The right to use the Server Software of the Licensed Program on the Servers within the Territory; 
  
 (b) The right to reproduce, pack, distribute and sell copies of the Client Software of the Licensed Program to Subscribers; 
  
 (c) The right to produce, distribute and sell the passwords and/or other access methods to
the Subscribers to gain access to the Location of playing the Licensed Program; 
  
 (d) The right to use Licensed Materials pertaining to the Licensed Program; 
  
 (e) The right to utilize Licensed Materials pertaining to the Licensed Program to design, develop, manufacture, produce, distribute and/or sell the collateral products, promotional, novelty items or premium products such as T-shirts,
stickers, and trinkets and other after-market products for solely marketing purpose, subject to Licensor’s prior written approval. 
  
 2.2 Use of Marks Subject to the terms and conditions contained in this Agreement, Licensor grants to Licensee during the term of this Agreement an
non-exclusive, non-transferable and royalty bearing right to use and/or to modify the Marks and the Game Title for the purpose of advertising, promoting and marketing the Client Software and the Game Service in the Territory in a style and manner
approved by Licensor in writing prior to such use. In such a case, the ownership of Marks belongs to Licensor as its own Intellectual Property. 
  
 2.3 Use of Know-how Subject to the terms and conditions contained in this Agreement, Licensor shall provide Licensee with the Confidential Information,
excluding the Source Code, in relation to the operation of the Game Service. 
  
 2.4 No Right to Copy Except as otherwise provided in this Agreement, Licensee shall not copy, reproduce, modify, translate or create derivative works or excerpt any of the Licensed Program and the Licensed Materials for any
purposes without the Licensor’s prior written approval. In case Licensee needs to modify Game Title for the marketing purpose in the Territory, Licensee should have Licensor’s prior written approval and the modified Game Title shall be
owned by Licensor. 
  
 2.5 No Sublicensing Licensee has no rights to
sublicense the Licensed Program or derivative works thereof save and except as stipulated in this Agreement. 
  
 2.6 Notwithstanding any of the provisions in this Agreement, Licensor agrees that Licensee shall have the right to sublicense to the Affiliates The9 Computer Technology Consulting (Shanghai) Co., Ltd.
(“The9”, hereinafter) located at 30/F CI TIC Square, No.1168, Nanjing Road (w), Shanghai, P.R.China, and Jiu Cheng Information Technology Limited (“Jiu Cheng” hereinafter). Registered at Room 674-04, Building 
  

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 No.2, No.351, Guo Shou Jing Road, Zhang Jiang High-tech Park, Shanghai, China. In case of sublicensing by Licensee to The9 or Jiu Cheng for
the purpose of legally operating the Licensed Program as stipulated in the foregoing, Licensee shall be required to notify Licensor in writing immediately after it signs the sublicensing contract. 
  
 3 Payments 
  
 3.1 License Fee In consideration of the grant of exclusive license for the
Licensed Program in Territory, Licensee agrees to pay Licensor a fee of two (2) million United States Dollars, the sum of which shall be paid as follows; 
  

	 	(a)	Three hundred thousand (300,000) United States Dollars (non refundable and non recoupable) within 45 days after the Agreement has been signed 

  

	 	(b)	Seven hundred thousand (700,000) United States Dollars (non refundable and non recoupable) within 45 days commencing from the date of Open Beta Service Date of the Licensed Program
within the Territory. 

  

	 	(c)	Five hundred thousand (500,000) United States Dollars (non refundable) within 45 days commencing from the date of Commercial Launch date of the Licensed Program within the
Territory. The aforementioned five hundred thousand (500,000) United State Dollars shall be treated as prepaid royalties by Licensee to Licensor as set forth in Section 3.2 below, only if the number of MACU were never reached thirty thousand
(30,000) within the first year after commercial launch. 

  

	 	(d)	Five hundred thousand (500,000) United States Dollars if the MACU of the Licensed Program has reached hundred thousand (100,000). 

  
 3.2 Royalties In addition to the License Fees specified in Section 3.1,
Licensee shall pay Licensor royalties specified in Exhibit B. 
  
  
 3.3 Minimum Guarantee Licensee agrees to pay the following Minimum Guarantee amount regardless to the sales of the Licensed Program within the Territory to
Licensor which is non-refundable and non-recoupable. 
  

	 	(a)	During the first 12 months of the Term (hereinafter as “the First Year”), the royalties payable to Licensor shall not be less than USD1.4 million.

  

	 	(b)	For the subsequent 12 months commencing immediately after the expiry of the First Year (hereinafter as “the Second Year”), the royalties payable to Licensor shall not be
less than USD1.4 million. 

  

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	 	(c)	For the subsequent 12 months commencing immediately after the expiry of the Second Year (hereinafter as “the Third Year”), the royalties payable to Licensor shall not be
less than USD1.2 million. 

  

	 	(d)	The shortfall (if any) of the total royalties payable to Licensor pursuant to Section 3.2 for the year and the aforementioned Minimum Guarantee for the same year shall be paid to
Licensor on a yearly basis, no later than fifteen (15) days after receiving the written notice from Licensor. 

  

	 	(e)	The failure by Licensee to make the payment stipulated in this Clause 3.4(d) will be a material breach of this Agreement, whereby Licensor may terminate this Agreement by a thirty
(30) days’ prior written notice. 

  
 3.4 Time of
Payments Licensee shall pay to Licensor the royalties under Section 3.2 on a quarterly basis, not later thirty (30) days after receiving invoice from Licensor. (The invoice shall not be sent out before the last day of each quarter).

  
 3.5 Form of Payments During the term of this Agreement, within
the first (1st) month after the end of each quarter, Licensee shall furnish Licensor with a copy of a royalty report
in which Licensee shall specify the number of on-line players or customers or end-user of the preceding quarter, sales report of Game Cards and/or the other payment method (other than Game Card, including, but not limited to mobile, credit and etc.)
and the royalties to be paid to Licensor hereunder with respect to such preceding quarter. The exchange rate for the royalty report will be official T/T buying rate of Bank of China on the day when the royalty report to be submitted after the end of
such proceeding operation month. After receiving the royalty report, Licensor shall issue an invoice to Licensee within five (5) working days. All royalties to be paid to Licensor by the Licensee pursuant to Section 3.2 of this Agreement shall be
paid in the currency of the United States Dollars. 
  
 3.6 Late
Payments Any payments due to Licensor under this Agreement and not paid on the due date for payment shall bear annual interest at five percent (5 %) (but in no event more than the maximum rate allowed by law) from the date when payment falls
due to the date of actual payment. 
  
 3.7 Taxes 
  
 3.7.1 In the event that the People’s Republic of China government imposes any income
taxes on any part of the royalties, License Fee and Minimum Guarantee requiring Licensee to withhold such tax from payments to Licensor in order to remit such payments to Licensor, Licensee shall withhold such tax from the payments. 
  

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 3.7.2 Licensee shall promptly furnish Licensor with official tax receipts issued by appropriate tax authorities or such other evidence as is reasonably requested by
Licensor to establish that such taxes specified in Section 3.7.1 have been paid so as to enable Licensor to support a claim for credit against income taxes which may be paid by Licensor. 
  
 3.7.3 Unless otherwise agreed by the parties, all taxes (other than such withheld People’s Republic of China income taxes imposed on
Licensor on its receipt of the royalties, License Fee and Minimum Guarantee), duties, assessments, fees and other governmental charges of any kind (including sales, use, excise taxes) which are imposed by or under the authority of any government or
any political subdivision thereof on the royalties and any other payments shall be borne by Licensee and shall not be considered a part of, a deduction from or an offset against, the royalties and any other payment. 
  
 3.7.4 Licensee shall hold Licensor harmless from all claims and liability arising from
Licensee’s failure to report or pay any such taxes, duties, assessments, fees and other governmental charges of any kind. 
  
 3.8 All payments under any provision of this Section 3 above shall be wire-transferred to a Licensor’s bank account. (which shall be provided to Licensee thru
email.) 
  
 3.9 Licensee’s violation of any provision of this Section 3 above
will be a material breach of this Agreement. 
  
 4 Records, Reports and Audits

  
 4.1 Records Licensee shall maintain complete and accurate books
and records in sufficient detail to reflect its operations under this Agreement and to enable the royalties accrued and payable under this Agreement to be determined. 
  
 4.2 Reports Licensee shall, at its expense, provide Licensor with a written, detailed and accurate report within fifteen (15)
working days of the end of each calendar month for the prior month for the sales reports and game data reasonably requested by the Licensor of the Licensed Program made during such prior month period. 
  
 4.3 User’s Database By giving a 5 day prior notice to Licensee, Licensor
shall have the right during office hours of Licensee to access to user’s database and billing database related to the Licensed Program in Licensee’s premises under Licensee’s guidance and subject to Licensee’s surveillance.

  

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 4.4 Audits 
  
 4.4.1 Licensor shall have the right to appoint at its own cost (except as provided in Section 4.4.3 below) an Independent International
Accounting Firm (hereinafter as “Accountant”) chosen from the Big 4, upon a seven (7) days’ prior written notice to Licensee to review the sales report on Game Cards and/or the sales through other payment methods without interfering
with Licensee’s regular operation and business. Licensor shall not carry out more than one such audit in any one year. 
  
 4.4.2 Licensor or representatives of Licensor shall protect the confidentiality of Licensee’s confidential information and abide by Licensee’s reasonable
security regulations while on Licensee’s premises and/or Designated Locations. 
  
 4.4.3 Licensee shall promptly reimburse Licensor for the entire costs of such review and inspection including, but not limited to reasonable professional fees, traveling and accommodation expenses if (and only if) the Accountant after such
review reveals a material shortfall of royalties that should be paid by Licensee pursuant to Section 3.2, which shortfall is not a result of different accounting policies. Licensee shall also pay the shortfall in the royalties ascertained to be due
from such review and inspection including any interest at the rate of twenty-five percent (25%) per year on the shortfall. 
  
 5 Delivery 
  
 5.1 Deliverables 
  

	 	(a)	Licensor shall deliver the initial Deliverable and Milestone Schedule (on the development of the Licensed Programs) within thirty (30) days following the Effective Date, and shall
submit each Deliverable on the applicable date (each a “Delivery Date”) listed in the Implementation Plan. Licensor may accordingly modify the Implementation Plan schedule and Delivery Dates from time to time with the
Licensee’s approval, should Licensor reasonably determine that Licensor will be unable to deliver a Deliverable on the applicable Delivery Date. Licensor shall provide the Licensee with the relative information to support the Milestone
Schedule. 

  

	 	(b)	From the date this Agreement is executed, Licensor shall deliver to Licensee (i) Beta testing version(s) of the Licensed Program no later than end of Year 2004 and (ii) copies of
the Licensed Materials in the quantities pursuant to mutually agreed period by both parties. 

  

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 5.2 After delivering the Gold Master CD, if Licensee discovers any Error, Licensee shall give prompt notice to Licensor and Licensor shall
fix any Errors discovered in the Licensed Program on its own cost and in timely manner. Any notice of Licensee to Licensor regarding the misbehavior of the Licensed Program to the Licensor shall be answered in writing within two (2) working days
from the date such notice is lodged. The time required to correct such Error shall be agreed by both Parties. 
  
 5.3 Testing By Licensor Licensor shall reasonably test each Deliverable and each material-patch of the Licensed Program before delivering it to Licensee. With each delivery of a Deliverable and a
material-patch, Licensor will provide Licensee with a report which describes the following contents including but not limited to any material “Error” found during testing, features known to be missing or inoperative from such Deliverable
and the changes in each Deliverable and material-patch. Such reported “Error” shall be fixed by the Licensor before the consequent Delivery Date. 
  
 5.4 Localizations Licensee agrees to fully localize the Licensed Program into simplified Chinese language. Licensor shall provide Licensee with Korean
language text and voice files of the Licensed Program in a form reasonably prescribed by Licensee, and at no additional charge to Licensee. Licensee and Licensor shall mutually determine whether, for each localization hereunder, the foreign language
translation will be fully localized (i.e., all text is translated and all audio is dubbed, re-recorded or subtitled, with localized packaging) or partially localized (i.e., with some but not all elements translated or otherwise localized). Licensee
shall be solely responsible for providing any and all translated voice files and text files, and Licensor shall be solely responsible for the integration of such files as are provided by Licensee, at no additional cost, into the final translated
versions of the applicable products required to be localized, subject to Licensee’s quality assurance review and approval procedures. All localizations shall be filed to the Licensor. 
  
 5.5 Quality Assurance Licensee shall provide a quality assurance team of
Licensee’s personnel for the localization of the Licensed Program, any patches and localizations developed for distribution inside the Territory by Licensee. Notwithstanding anything contained in this Agreement to the contrary, Licensee shall
be responsible, at its sole cost and expense, for the quality assurance of the Localized Alpha Version, Localized Beta Version, Localized Commercial Launch Version and Localized Gold Master, and the localized version of any Improvements. 

 

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 6 Technical Support/Assistance and Maintenance 
  
 6.1 Licensee shall provide its Subscribers with reasonable support and assistance. 
  
 6.2 Technical Support Licensor covenants that it now has and for the term of this Agreement will continue to have sufficient
dedicated personnel to support its technical assistance and maintenance obligations hereunder. Mr. Hakkyu Kim ensures his effective and active lead to such dedicated technical team. Such dedicated technical team may provide the Licensee with
sufficient, professional and dedicating technical support, which shall include but not limited to the development of the Licensed Program according to the needs of the local market within the Territory. 
  
 6.3 System Requirements 
  

	 	(a)	Licensee shall, at its own expense, arrange the Servers ready for installation of the Server Software therein. The Servers must satisfy the specifications assigned by Licensor prior
to its installation. Licensee may assign any Internet Data Center (IDC) in the Territory upon specifications assigned by Licensor prior to its installation. 

  

	 	(b)	Licensee shall provide, or have a third party provide a secure payment system/gateway (the “Payment Gateway”) for the purchase of subscriptions, and Digital Assets,
if any, by end users. 

  

	 	(c)	Both Parties shall use best efforts to provide security of the highest standards in the on-line games industry for the Licensed Program, Customer Information Database, Game
Database, Payment Gateway, including, but not limited to the prevention of attacks by hackers, robots, worms, viruses and any other security threats to the Licensed Program, Payment Gateway, Game Database, Customer Information Database; While
Licensee shall use best efforts to assure the security of the Licensee’s Servers. 

  

	 	(d)	Licensee shall conduct the BETA Version Testing. 

  

	 	(e)	Licensee shall provide the physical space and environment (including, without limitation, electrical, ventilation, moisture, temperature, cleanliness, etc.) that will enable the
Licensed Program, Payment Gateway, Customer Information Database and Game Database to function efficiently. 

  

	 	(f)	Licensee shall enable Licensor to access the Localized Licensed Program for the purpose of modifying, improving, or providing patches for same. 

  

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 regard to use of the Localized Licensed Program, Game Database and Customer Information Database by end users of the
Licensed Program in a form and format and frequency to be mutually agreed upon by the parties. 
  

	 	(h)	Licensee shall provide sufficient communications bandwidth to enable proper access to the localized Licensed Program by Subscribers under normal conditions and ensure efficient
access to the localized Licensed Program by Subscribers without abnormal communication delays. 

  

	 	(i)	Licensee shall implement terms and conditions and a privacy policy for the Licensed Program, Payment Gateway, Game Database and Customer Information Database which complies with all
applicable laws and regulations and is subject to Licensor’s approval, which approval shall not be unreasonably withheld or delayed. 

  

	 	(j)	Licensee shall monitor the Licensed Program, Payment Gateway, Game Database and Customer Information Database to ensure that such are being used for lawful purposes and any
parameters and mutually agreed to by the parties. 

  

	 	(k)	Licensee shall ensure that the localized Licensed Program, Payment Gateway, Game Database and the Customer Information Database comply with any and all applicable laws, regulations
and Internet best practices. 

  

	 	(l)	Licensee shall maintain a customer support staff for the Licensed Program and provide Licensed Program customer support. 

  

	 	(m)	Licensee shall maintain redundant off-site back-up for all data and information necessary to recover operations of the Licensed Program, Game Database and the Customer Information.

  
 6.5 Maintenance Licensor shall exercise its best
efforts to maintain the Licensed Program free of Errors at no cost to Licensee for the term of this Agreement in accordance with the following procedure; 
  
 6.5.1 In the event Licensee discovers Errors in the Licensed Program which cause the Licensed Program not to operate in material conformance to Licensor’s
specifications, Licensee shall submit to Licensor a written report, via e-mail or by facsimile, describing the nature of such Errors in sufficient detail to permit Licensor to reproduce and/or correct such Errors. 
  
 6.5.2 Upon receipt of any such written reports, Licensor agrees to use its best efforts to
respond to the reported Errors at the latest within forty eight (48) hours and prepare an update or patch program in a timely manner to correct such Errors as early as practicable. 
  

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 6.6 Hacking Both Licensor and Licensee shall use their best efforts to protect the Servers from hacking. In the event Licensee
discovers any hacking activities, Licensee shall submit to Licensor a written report, via e-mail or by facsimile, describing the nature of such activities in sufficient detail to permit Licensor to provide preventive measures. Upon receipt of any
such written report, Licensor agrees to use its best efforts to respond to the reported hacking activities on an urgent basis. 
  
 6.7 Upgrade Licensor shall provide Licensee with the Upgrade Version of the Licensed Program from time to time within the period as set forth in the
attached Implementation Plan free of charge. 
  
 6.9 Technical Support
Team On Licensee’s request, Licensor shall provide in writing within a reasonable time the names of personnel assigned to give technical support and maintenance to Licensee as provided in this Section 6. As the Licensee may need
technical services according to the need of the local market from time to time, Licensor agrees that the aforementioned technical supporting team shall be set up within 1 month before the Open Beta Testing Date. On Licensor’s request, Licensee
shall provide a list with the names of the employees designated to receive technical support and maintenance from Licensor. Either party may change the names on such lists at any time by providing written notice to the other party. Licensor will
ensure Mr. Hakkyu Kim will remain as the active leader of such technical support team during the term of this Agreement. 
  
 6.10 Beta Testing Following Licensor’s delivery of the Beta Version, Licensee shall commence testing of the Beta Version and all of the elements of the
Licensed Program, including, but not limited to the Payment Gateway, the Servers, the Customer Information Database and Game Database. 
  

	 	(a)	Testing of Licensee Servers, Payment Gateway, Game Database and Customer Information Database Prior to commencing any testing with end users,
Licensee shall implement and test the security methods selected for the Servers, Payment Gateway, Game Database and Customer Information Database and the functionality of the Servers, Payment Gateway, Game Database and Customer Information Database
to ensure that such security methods and functionality are of a quality that is no less than the highest standards available in the online games industry. Licensee shall provide Licensor with (i) periodic reports during such testing and (ii)
additional reports in a timely manner following Licensor’s request regarding the status of such testing. The testing 

  

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 required under this Section shall include testing of any Servers managed, controlled, operated or owned by
Licensee’s Affiliates and/or sub-licensees. Licensee shall immediately terminate any agreement with any Licensee sub-licensee which has failed to provide the security methods or functionality required under this Section, Upon
completion of Licensee’s testing procedures, Licensee shall submit a testing report to Licensor for the Servers, Payment Gateway, Game Database and Customer Information Database in the Territory for Licensor’s approval. Licensor shall have
ten (10) working days to review such report and suggest on the security methods and functionality provided by Licensee, its Affiliates and/or its sub-licensees within the Territory. Licensee shall take the Licensor’s suggestion into account and
may make amendment at Licensor’s reasonable requests. 
  

	 	(b)	Testing of Beta Version Following Licensor’s acceptance of the Licensee Servers, the Payment Gateway, Game Database and Customer Information Database, Licensee
shall issue an amount of temporary Licensed Program accounts to be mutually determined by the parties, to the Licensee’s quality assurance team for the purpose of testing the Beta Version and the Game Database for a period of time to be
mutually determined by the parties. Licensor will use best efforts to correct and/or provide avoidance procedures and/or work-arounds for any Design Errors reported by Licensee at no charge within a reasonable period of time (following
Licensee’s completion of the testing of the Beta Version. 

  
 7
Training 
  
 7.1 Training On Licensee’s request, Licensor will
provide training to Licensee’s personnel for the Licensed Program. Training will be in the areas of engineering, use and maintenance of the Licensed Program, operations, sales and marketing. Training will be conducted at times mutually
agreeable to Licensor and Licensee. Training period will be discussed and agreed by both parties. 
  
 8 Responsibilities of Licensee and Licensor 
  
 8.1 Licensee is responsible for the following actions: 
  

	 	(a)	Procuring and operating the Servers and operating systems to run the Server Software in accordance with the specifications; 

  

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	 	(b)	Establishing adequate operational back-up provisions to protect against data loss and/or a defect or malfunction that renders the Server Software or the Servers non-operational.

  

	 	(c)	Exercising its best efforts in distributing, advertising, promoting, marketing the Client Software and the Game Service; and 

  

	 	(d)	Selling the Client Software and Game Cards either to legitimate wholesalers or to legitimate retailers for resale and distribution to the Subscribers; 

  

	 	(e)	Quality Control Licensee shall maintain manufacturing standards equal to those of Licensor in the Republic of Korea, which standards Licensee acknowledges and is
familiar with. Any material change involving any alteration in the structure, quality or design of the Licensed Product and the supplied know-how relating thereto, shall be subject to the prior written notice of Licensor. 

 

	 	(f)	Licensee shall generate and distribute the Game Card for only use of Licensed Program. However, by mutual consent, Licensee shall generate and distribute Game Card which is jointly
used with other published titles by Licensee. 

  

	 	(g)	Licensee shall respond all matters arising out of any payment relating to sublicense. 

  
 8.2 In order to fulfill the responsibilities specified above, Licensee shall provide Licensor with a master business plan which includes the
marketing plan for the Game Cards and Game Service and information of the commercial plan and pricing policy for the Licensed Program. The commercial plan and pricing policy shall be discussed by both parties prior to the start of the Commercial
Service in the Territory. 
  
 8.3 Licensor shall have the sole and exclusive
responsibility for the design, development and maintenance of the “look and feel,” game play and all other aspects of Licensed Program. Licensor shall do the following in the course of hosting and maintaining the Licensed Program;

  

	 	(a)	The Licensed Program shall be provided by Licensor within mutually agreed period in synchronous with that of the updated Korean Version. 

  

	 	(b)	Licensor shall provide the Licensee with a close beta version of the Licensed Program no later than the end of year 2004. 

  

	 	(c)	Licensor shall use best efforts to promptly fix Design Errors as Licensor is made aware of same. 

  

	 	(d)	Licensor shall use best efforts to provide adequate security for the Licensed Program and Game Database, including, but not limited to the prevention of attacks by hackers, robots,
worms, viruses and any other security threats to the Licensed Program and Game Database. 

  

 15 

 Confidential 
  

	 	(e)	Licensor shall assist the Licensee regarding Licensed Program customer support. 

  

	 	(f)	Licensor shall use best efforts to solve any cheating tool reported by Licensee in a timely manner. 

  

	 	(g)	Licensor shall use best efforts to develop contents for local market within the Territory at the reasonable request by Licensee. 

  

	 	(h)	for every patch of the Licensed Program or updated version of the Licensed Program, provide Licensee with detailed description documents including but not limited to Licensed
Program parameters adjustment description documents for helping Licensee to use all new features of the Licensed Program; 

  
 8.4 Marketing Requirements 
  

	 	(a)	Licensee shall notify Licensor of all advertising, promotional, and marketing materials, items of the Licensed Program, and promotional product manufactured hereunder. Licensee
shall attach in a prominent position, suitable to Licensor, a stamping as well as related logos, such as copyrights marks, which shall indicate that the item has been manufactured under license from Licensor. 

  

	 	(b)	Licensee agrees to be solely responsible for all the damages occurred by failure of the execution of the above clause. 

  

	 	(c)	All other after-market products are solely used for marketing purpose only; as referred in term 2.1 (e). 

  

	 	(d)	Separate contracts are required if Licensee desires to have the license of other after market products, except the Licensed Program, for commercial purpose within the Licensed
Territory. 

  
 8.5 Right of First Refusal 

 

	 	(a)	In the event that Licensor has developed a continuous version of Licensed Program named GE2 (for example only), Licensor agrees that Licensee shall have the priority of obtaining
the exclusive right of operating the continuous version of the Licensed Program in the Territory, further provided that, the increase and/or change in contents or graphics less than 30% as compared to the Licensed Program will be regarded as the
Improvements of the Licensed Program, instead of the continuous version as aforementioned. 

  

	 	(b)	In the event that Licensor has planted the Licensed Program on the mobile platform, Licensee shall have the priority to obtain the exclusive right of operating such mobile Licensed
Program. 

  

 16 

 Confidential 
  

	8.6	The failure execution of paragraph 8.3 (b) by Licensor will be construed as a material breach of this Agreement, in which event, notwithstanding the other provisions of this
Agreement, Licensee may terminate this Agreement as set forth in Section 13.5 below without the necessity to give prior notice to Licensor, and require Licensor to return all License Fee(s) and/or royalties paid so far for the Licensed Program
hereunder without prejudice to the rights of Licensee to claim further compensation against Licensor. In addition, the Licensee may be exempted from the obligation to pay the Minimum Guarantee as set forth in Clause 3.4 for Licensor’s
violation, failure, delay or reluctance of execution of any paragraphs in Section 8.3 other than 8.3 (b) which lead to materially affect the operation of the Licensed Program 

  
 9 Ownership of Intellectual Property 
  
 9.1 Ownership Licensee acknowledges that rights to Intellectual Property in
relation to the Licensed Program, all Improvements thereof and Licensed Materials and modified marks shall be and remain the exclusive property of Licensor whether or not specifically recognized or registered under applicable law. Licensee will not,
during or after the term of this Agreement, claim any right, title, interest in any of the Licensor’s rights to Intellectual Property. 
  
 9.2 Licensee’s Obligation Licensee shall not, and it shall not cause or assist any third party to, register or attempt to register, in its own name or
otherwise, any of the Licensor’s Marks and Game Title owned by or associated with Licensor or any similar forms of Marks and Game Title. 
  
 9.3 Ownership of User’s Database 
  
 9.3.1 Both Licensor and Licensee shall co-own the rights to user’s database and billing database. 
  
 9.3.2 Unless otherwise defined in this Agreement, Licensor shall only use user’s database and billing database as follows :

  

	 	(a)	For marketing, promotion, service of the Licensed Program in Territory upon termination of this Agreement. 

  

	 	(b)	For perpetual service of the Licensed Program Upon termination of this Agreement. 

  

	 	(c)	With a cautious attitude and on a confidential basis. 

  

 17 

 Confidential 
  
 9.4 Ownership of Derivative Works The ownership of any Derivative Works created or invented based on the Localized Licensed
Program shall be mutually agreed by the Parties. In the event that there are any revenues generated through the sales of such Derivative Works, the parties shall share such revenues on a mutually agreed ratio. Notwithstanding the forgoing, all
rights related with the official website of the Licensed Program, including but not limited to the domain name, shall be owned by the Licensee. 
  
 9.5 Reverse Engineering Licensee shall not decompile, reverse engineer or otherwise attempt to derive or modify the Licensed Program including the Source
Code thereof. Licensee shall not merge the Licensed Program with another software program. 
  
 9.6 Copyright and Trademark Notices Licensee shall assure that all Licensed Program and Licensed Materials sold and distributed by Licensee will include copyright and trademark notices set forth in
Exhibit (A). Such notices shall (i) be affixed in a prominent location on the media, in the Licensed Materials on the media packaging, and, if applicable, in a readable file in the code, and (ii) appear on at least one display screen for at least
two seconds during execution of the Licensed Program, and (iii) Licensor shall have prior approval of the size, manner, appearance and location of the Licensee Trademarks in such areas, which approval shall not be unreasonably withheld; and (ix) the
Licensee Trademarks shall not be larger or more prominent than any Licensor Trademarks appearing in the same location. 
  
 10 Warranties and Limitations on Liability 
  
 10.1 Warranty 
  

	 	(a)	Licensor warrants that it has the sufficient right, title and interest in the Licensed Program and Licensed Materials to enter this Agreement. 

  

	 	(b)	Licensee has full power and authority to enter into this Agreement and to fully perform its obligations hereunder. 

  

	 	(c)	Licensor is the owner of the Licensed Program and has the full and unfettered right to grant the licenses hereunder without the necessity of obtaining any approval, consent or
permission of a third party other than IMC, and the licenses granted hereunder are free of any encumbrances or third party right 

  

	 	(d)	To the best of its knowledge, the Licensed Program does not infringe upon any third party’s Intellectual Property Rights and that it has not been notified of nor does it
currently anticipate the possibility of such infringement. 

  

 18 

 Confidential 
  

	 	(e)	Licensee shall use its best efforts to ensure that the use of the Licensed Program within the Territory shall be in compliance with all applicable laws, statutes, ordinances and
regulations of the Territory. 

  
 10.2 Warranty of
Payments Licensee represents and warrants that to its best knowledge and information at the time of signing this Agreement in making payments of all License Fees, royalties, Minimum Guarantee and other payments to Licensor in United States
dollars under this Agreement does not violate the relevant regulations and laws of the People’s Republic of China. 
  
 10.3 Licensee shall solely be responsible for any and all obligations to Subscribers imposed by the government of the Territory and Licensee shall indemnify and protect
Licensor against any and all claims by Subscribers due to faults attributable to Licensee in the event that Licensee terminates the service of Licensed Program to Subscribers for any reason whatsoever and/or terminates this Agreement for any reason
whatsoever. 
  
 10.4 Limitations and Liability In no event shall
Licensor be liable for any loss of data, or profits or special, incidental, indirect or consequential damages arising out of or in connection with the use or performance of the Licensed Program, unless such loss were caused by the defects of the
designing of the Licensed Program or the Error or is due to the default of Error. 
  
 10.5 Licensee may use the names, trademarks, service marks and the related logos owned by Licensor only for the purpose as set forth in Section 2. Licensee may change and/or create a new title of the Licensed Program to suit the local
customs, language and culture only with a prior written approval from Licensor. Licensee will notify Licensor immediately of any known use in the Licensed Territory of Licensor’s established names, patents or trademarks by others. Licensee will
assist Licensor with reasonable commercial effort in procuring Licensor’s trademarks and patents in the Licensed Territory, at Licensor’s expense, and will assist Licensor in enforcing Licensor’s rights. Licensee acknowledges
Licensor’s invention of the Licensed Program and will respect any patent application and grants files or received by Licensor in the Licensed Territory. 
  
 10.6 Disclaimer of Warranties. THE WARRANTIES SET FORTH HEREIN BY LICENSOR ARE LIMITED WARRANTIES AND ARE THE ONLY WARRANTIES MADE BY LICENSOR. EXCEPT AS
MAY BE SET FORTH HEREIN, THE WORK IS LICENSED “AS IS” WITHOUT WARRANTY OF ANY KIND. LICENSOR DOES NOT WARRANT THAT THE WORK IS ERROR-FREE OR THAT ITS USE WILL BE UNINTERRUPTED. 
  

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 LICENSOR EXPRESSLY DISCLAIMS, AND HEREBY EXPRESSLY WAIVES, ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION,
WARRANTIES OF MERCHANT ABILITY WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE. 
  
 11 Confidential Information 
  
 11.1 Confidential
Information belonging to Licensor includes, without limitation, the Licensed Program, the Source Code thereof, and the Licensed Materials. For avoidance of doubt, the Source Code obtained by Licensee from any third party, is the Confidential
Information of Licensor. 
  
 11.2 Confidential Information and all physical
embodiments thereof received by either party (the “Receiving Party”) from the other party (the “Disclosing Party”) during the term of this Agreement are confidential to and are and will remain the sole and exclusive property of
the Disclosing Party. At all times, both during the term of this Agreement and after its termination, the Receiving Party shall hold all Confidential Information of the Disclosing Party in confidence, and will not use, copy or disclose such
Confidential Information or any physical embodiment thereof (except as permitted by this Agreement or for the compliance with the laws and regulations), or cause any of the Confidential Information to lose its character as confidential information.

  
 11.3 Within thirty (30) days after the termination of this Agreement, the
Receiving Party shall deliver to the Disclosing Party all Confidential Information belonging to the Disclosing Party, and all physical embodiments thereof, then in the custody, control or possession of the Receiving Party. 
  
 12 Infringement and Indemnification 
  
 12.1 Notices Licensee shall immediately notify Licensor if it becomes aware of
(i) any threatened or actual liability claim by a third party relating to the Licensed Program and (ii) any unauthorized use of the Licensed Program and Licensed Materials or infringement of Licensor’s rights to Intellectual Property therein.

  
 12.2 Licensor shall defend Licensee against and indemnify Licensee from and
against any damages, liabilities, costs and expenses arising out of any claim that the Licensed Program infringes a valid copyright, trade secret or other intellectual property right of a third party, PROVIDED THAT Licensee gives Licensor prompt,
written notice 
  

 20 

 Confidential 
  
 of any such claim and all reasonable cooperation, information and assistance to defend such claim. Licensor shall have sole control and
authority with respect to the defense, settlement, or compromise thereof. Licensee may appear in such action with counsel of its choice, at its own expense. 
  
 12.3 Licensor shall have no liability or obligation to Licensee under Section 12.2 if such claims, damages and liabilities result from (i) Licensee’s breach of any
term of this Agreement, (ii) Licensee’s unauthorized use of the Licensed Program, or (iii) modifications, alterations or enhancements of the Licensed Program, which are not created by Licensor. 
  
 13 Termination 
  
 13.1 This Agreement shall be in force and effect from the Effective Date and continue for thirty-six (36) months after the date of the
Commercial Launch Date of the Licensed Program and shall continue from year to year on an annual basis thereafter unless either Party gives notice to the other not less than thirty (30) days prior to the expiration of the current term that it will
not renew this Agreement when such current term expires. 
  
 13.2 The parties may
terminate this Agreement by mutual consent upon such terms as they may agree in writing. 
  
 13.3 Licensor may terminate this Agreement immediately if Licensee fails to gain approval from the Government of the People’s Republic of China within eight (8) months (hereinafter as “Period”) from the
date that the Licensed Program is submitted to the Government of PRC, provided that such Period shall not include the time which is necessary for modifying the Licensed Program to meet with the Government’s requirements. 
  
 13.4 Unless otherwise required in this Agreement or by Laws/Regulations, if one party
breaches any material provision as set forth in this Agreement, the non-breaching party may terminate this Agreement by giving fifteen (15) days written notice of termination to the breaching party. If the breach is capable of being cured and the
other party acts diligently and continuously to cure such breach within the fifteen (15) days, the termination shall not become effective. 
  
 13.6 Unless otherwise required in other provisions, this Agreement may be terminated by seven (7) days written notice if; 
  

	 	(a)	Royalties and License Fees payments due to Licensor under Section 3, or any part thereof, become thirty (30) days or more overdue; 

  

 21 

 Confidential 
  

	 	(b)	The Licensor fails to execute the Implementation Plan in a timely manner. 

  

	 	(c)	The confidentiality provisions contained in Section 11 are breached by either Party; 

  

	 	(d)	If Licensee attempts to obtain the Source Code of the Licensed Program; or 

  

	 	(e)	Either Party files a voluntary petition in bankruptcy or receives notice of a third party’s intention to file an involuntary petition in bankruptcy. 

 
 14 Effects of Termination 
  
 14.1 Survival of Rights and Obligations Upon termination of this Agreement, all rights and obligations hereunder shall cease
except (1) the right to receive the accrued royalty, (2) the warranties expressly set forth in Section 10, and (3) the keeping of confidential information as provided in Section 11 hereunder within one (1) year after the termination of this
Agreement and any other rights, the continuing protection of which is reasonably contemplated by this Agreement to protect either of the Parties hereto and their intellectual property rights, including service follow-up on existing Subscribers.

  
 14.2 Upon termination or expiration of this Agreement, Licensee shall have no
further right to use, copy, duplicate, modify, enhance, create derivative works of, or sell and distribute the Licensed Program and Licensed Materials. 
  
 14.3 Upon termination or expiration of this Agreement for any reason, all rights and licenses granted to Licensee hereunder shall terminate and revert immediately to
Licensor and Licensee shall immediately cease using the Licensed Marks and the Licensed Program. 
  
 14.4 In the event of termination or expiration of this Agreement, Licensee shall immediately (i) return to Licensor all Beta Version, Client and Server Software and Gold Master CD duplication disks together with all
copies of the Licensed Materials, and all other materials associated with the Licensed Program, and (ii) destroy all copies of Improvements and certify in writing to the Licensor to that effect. 
  
 14.5 Licensor shall have no liability to Licensee for damages of any kind, including
indirect, incidental or consequential damages, on account of the termination or expiration of this Agreement in accordance with its terms. Without limiting the generality of the foregoing, Licensor shall not be liable to Licensee for reimbursement
or damages for the loss of goodwill, prospective profits or anticipated sales, or on 
  

 22 

 Confidential 
  
 account of any expenditures, investment, leases or commitments made by Licensee or for any other reason whatsoever based upon, or growing
out of, such termination or expiration. 
  
 14.6 Perpetuity of Service
Rights Upon the termination or expiration of this Agreement, Licensee shall shut down and terminate the service of the Licensed Program provided by Licensee and/or Affiliate (including Sublicensee). Licensor shall have the right to assume
the service of the Licensed Program 1 month prior to such termination Licensor may elect to purchase any equipment purchased by Licensee and/or Affiliate (including Sublicensee) for the service of the Licensed Program at the fair market value of
such equipment on the date Licensor elects to assume the service of the Licensed Program as determined by an independent third party expert appointed by mutual consent of the parties. Licensee hereby grant to Licensor a fully paid up, worldwide,
transferable, royalty-free, sublicensable license to use, utilize, or otherwise exploit or have used, utilized or otherwise exploited and Licensee Artwork used in or in connection with the service of the Licensed Program, which license shall become
effective upon Licensor’s written agreement to assume the service of the Licensed Program and payment of any amounts required to be paid to Licensee hereunder; provided that any tools or other technology not incorporated in the Licensed
Program, shall be used by Licensor solely for internal use purpose and shall not be distributed or otherwise made available to any third party other than independent contractors engaged to assist Licensor in the development or support of service of
the Licensed Program. Upon its assumption of service of the Licensed Program, Licensor shall be solely responsible for service of the Licensed Program on-going costs and duties and shall indemnify and hold Licensee harmless for any claims, damages,
losses, costs or expenses arising out of occurrences resulting from Licensor’s operation of service of the Licensed Program following Licensor’s assumption of same. 
  
 15 Government Approval 
  
 In the event that the Licensed Program is held by the competent court or by the censorship bureau as a censorship violation, it shall be Licensee’s responsibility to
obtain censorship approval before the commercial launch of the Licensed Program and Licensor shall make all necessary modification, at its sole discretion, requested by the Licensee to accommodate the censorship application process. 
  

 23 

 Confidential 
  
 16 Dispute Resolution 
  
 16.1 Arbitration All disputes, controversies or differences which may arise between the parties, out of or in relation to or in connection with this
Agreement, or for the breach thereof, shall be finally settled by arbitration in United States in accordance under the laws of California. The award rendered by the arbitrator(s) shall be final and binding upon both parties concerned. 
  
 16.2 Governing Law The construction, validity, performance and effect of this
Agreement shall be governed by the laws of the California State of the United States. 
  
 16.3 Legal Expenses The prevailing party in any legal action brought by one party against the other and arising out of this Agreement shall be entitled, in addition to any other rights and remedies available to it at law or in
equity to reimbursement for its costs and expenses (including court costs and reasonable fees for attorneys and expert witnesses) incurred with respect to bringing and maintaining any such section. The term “prevailing party” for the
purposes of this Section shall include a defendant who has by motion, judgment, verdict or dismissal by the court, successfully defended against any claim that has been asserted against it. 
  
 17. Liquidated Damages 
  
 Unless otherwise defined in this Agreement, in the event of termination without any proper and acceptable reason by one Party, the
terminating Party shall be liable for the liquidated damage suffered by the other Party of the amount of US $5,000,000. 
  
 18 Miscellaneous 
  
 18.1 Notice Any notice required or permitted by this Agreement shall be in writing, shall be sent by facsimile, or sent by a internationally-recognized
commercial overnight courier, or mailed by registered or certified mail, addressed to the other party at the address shown at the beginning of this Agreement or to such other address as may be provided in writing by either party hereunder, and with
return receipt. Any such notice shall be effective as of the date of receipt on the return receipt. 
  
 18.2 Force Majeure. Neither party shall be deemed in default of this Agreement to the extent that performance of its respective obligations or attempts to cure any breach are delayed or prevented by
reason of any act of God, fire, natural disaster, accident, act of government, or any other cause beyond the reasonable control of such party; 
  

 24 

 Confidential 
  
 provided, that the party interfered with gives the other party written notice thereof within ten (10) working days of the occurrence of such
event or circumstance. In the event of such a Force Majeure, the time for performance or cure will be extended for a period equal to the duration of the Force Majeure but not in excess of three (3) months. 
  
 18.3 Assignment Licensee shall not assign this Agreement nor any rights or
benefits hereunder to third-parties without the prior written permission and approval of Licensor. Licensor shall not unreasonably withhold such permission. 
  
 18.4 Independent Contractor Nothing contained herein shall in any way constitute any association, partnership or joint venture between the parties hereto,
or be construed to evidence the intention of the parties to establish any such relationship. Each of the parties shall be operating as independent contractors in fulfilling their respective obligations hereunder. Neither party shall have the right,
power or authority to make any representation or warranty (whether express or implied), or to assume or create any obligation on behalf of the other party, or to bind the other party in any manner whatsoever. 
  
 18.5 Entire Agreement This Agreement constitutes the entire agreement and
understanding between the parties with respect to the subject matter contained herein. All prior negotiations, representations, agreements and understandings, oral or otherwise, are merged into this Agreement. The parties may, from time to time
during the continuance of this Agreement, modify, vary or alter any of the provisions of this Agreement, but only by an instrument duly executed by authorized representatives of both parties hereto. 
  
 18.6 Modification If either party desires to modify this Agreement, the parties
shall, upon reasonable notice of the proposed modification by the party desiring the change, confer in good faith to determine the desirability of such modification. No modification will be effective until a written amendment is duly signed by
authorized representatives of both parties hereto. 
  
 18.7 Severability
If any provision of this Agreement (or part thereof) is determined by a court of competent jurisdiction to be void, invalid or otherwise unenforceable, such provision (or part thereof) shall be enforced to the extent possible consistent with the
stated intention of the parties or if incapable of such enforcement, shall be deemed to be deleted from this Agreement while the remainder of this Agreement shall continue in full force and remain in effect according to its stated terms and
conditions. 
  
 18.8 Remedies Unless otherwise expressly provided
herein, either party’s selection of any remedies provided for this Agreement shall not be exclusive of any other remedies available hereunder. Or otherwise at law or in equity and all such remedies shall be deemed to be cumulative. 

 

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 Confidential 
  
 18.9 Waiver No failure or delay by either party in exercising any right, power, or remedy under this Agreement shall constitute a waiver of any such right,
power, or remedy. No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom such waiver is sought to be enforced. Any waiver by either party of any provision of this Agreement shall not be
construed as a waiver of any other provision of this Agreement, nor shall such waiver operate as or be construed as a waiver of such provision respecting any future event or circumstance. 
  
 18.10 Consent not unreasonably withheld. If a party is required under any provision of this Agreement to give approval or
consent, or to confirm acceptance, such party shall not unreasonably withhold or delay giving such approval, consent or confirmation. 
  
 18.11 Relationship between the Parties The relationship between the parties is that of independent contractors. Nothing contained in this Agreement shall be
deemed to imply or constitute either party as the agent or representative of the other party, or both parties as joint ventures or partners for any purpose. 
  
 18.12 Headings Captions and headings contained in this Agreement have been included for ease of reference and convenience and shall not be considered in
interpreting or construing this Agreement. 
  
 18.13 Counterparts
This Agreement may be executed in four (4) or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. This Agreement shall not be binding upon a party until signed by such
party where indicated below. 
  
 18.14 Construction This Agreement
shall be fairly interpreted in accordance with its terms and without any strict construction in favor of or against either party. 
  
 18.15 Languages This Agreement is executed in four (4) copies in English and all of which shall constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed in their corporate
names by their duly authorized representatives. 
  

 26 

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	 HanbitSoft, Inc.
	 	 Gamenow.net HK Limited.

				
	 By
	 	 

	 	 By
	 	 

	 Name
	 	 YOUNG-MAN KIM
	 	 Name
	 	 ZHU JUN

	 Title
	 	 CEO
	 	 Title
	 	 Chairman & CEO

	 Date
	 	  

	 	 Date
	 	  

		
	 IMC Games, Co., Ltd.
	 	 The9 Computer Technology Consulting (Shanghai) Co., Ltd

				
	 By
	 	 

	 	 By
	 	 

	 Name
	 	 Kim, Hakkyu
	 	 Name
	 	 ZHU JUN

	 Title
	 	 CEO
	 	 Title
	 	 CEO

	 Date
	 	  

	 	 Date
	 	  

  
 Exhibit A

  

	1.	LICENSED PROGRAM 

  
 Granado Espada 
  

	2.	DESIGNATED LOCATION & TERRITORY 

  
 The Location where Licensor permitted Licensee to set up Server Software within the Territory. 
  

	3.	Marketing Obligation 

  
 Licensee shall fund all forms of marketing, promotional and advertising activities exclusively for Licensed Program, including but not limited to production cost of posters, banners, point of sale and display
materials, advertising across all print and electronic media, promotional events or product launches and all other marketing or advertising costs relating to third parties and shall not include salary or payroll costs relating to marketing of
Licensed Program. 
  

	4.	Localization 

  
 Licensee agrees to pay the following costs related to localization of Licensed Program for servicing within the Territory during the localization process. 
  

 27 

 Confidential 
  
 4.1 All fees and expenditures including but not limited to the accommodation, transportation, translation of technical staffs dispatched by Licensor at the request of
Licensee for technical support, adjustments and/or upgrading the Licensed Program of the Licensed Program within the Territory shall be borne by the Licensee, subject to the confirmation from both parties. 
  
 4.2 All costs related to translation of Licensed Program including but not limited to the
text translation, string translation and web related contents should be borne to Licensee. 
  
 4.3 All the localization fees except the client version of Licensed Game for servicing in the Licensed Territory during localization should be borne by Licensee. 
  

	5.	Hanbitsoft’s Proprietary Trademarks 

  
 © 2004 IMC Games Co., Ltd. All Rights Reserved. 
 Exclusive License
© Since 2000 HanbitSoft, Inc., All rights reserved 
 Granado Espada is registered trademark of IMC Games Co., Ltd 
  
 Exhibit B 
  
 Royalty Calculation 
  

	 	1.	The royalties payable by Licensee to Licensor for the Licensed Program under the Agreement shall be equivalent to 21% of the face value of the Charged Game Card.

  

	 	2.	The royalties payable by Licensee to Licensor for other revenue generated from the Game (including all payment which treat sale, earning, profit, revenue, etc other than Game Card)
under the Agreement shall be the equivalent to 21% of the total of such revenues. 

  

	 	3.	When the ratio of the other payment (such as mobile/online banking, credit card. Etc.) method is over 10% of total revenue, the parties shall negotiate the royalty rate or such
methods through written agreements. 

  

 28 

 Confidential 
  
 Exhibit C 
  
 Development Schedule 
  
 (IMC Games shall
provide) 
  

 29 

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 Exhibit D 
  
 Implementation Plan 
  
 (to be agreed by
the Parties) 
  
 Exhibit E 
  
 The Licensor agrees to provide the Licensee with the following documentation upon the
Licensee’s reasonable request in accordance with the development status of the Licensed Program. 
  
 Technical Support Request 
  
 A. SYSTEM DESCRIPTION 
  
 1. General Introduction to the system of the
Licensed Program (including but not limited to the architecture of the Licensed Program, the capacity of each server, the traffic rate requirement of the Client Software) 
  
 2. Manual of the system structure of the Licensed Program (including system structure diagram, data diagram etc.) 
  
 3. Detail Introduction to the function of different Servers 
  
 4. The list of the TCP/UDP service required by the Servers, with the serial number of the
corresponding ports. 
  
 5. Function and Capacity of the current Servers.

  
 6. Manual of the expansion/condensation of the sub-division in the Licensed
Program 
  
 B. IDC AND NETWORK REQUIREMENTS: 
  
 1. Network equipment SPEC and configuration requirements. 
  
 2. Network topological graph 
  

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 Confidential 
  
 3. Network requirements: Bandwidth requirements (for 10000 concurrent users) and Requirements to the quality of the network service. 
  
 4. ACL configuration 
  
 C. SYSTEM INSTALLATION 
  
 1. Hardware SPEC 
  
 2. Hardware installation manual 
  
 3. Server
installation manual (system, patch, other system module or software) 
  
 4.
Execution plan of the installation of multiple Servers 
  
 5. Installation and
Configuration of the Storage Devices 
  
 6. Access authorization of the System and
Database 
  
 7. Specification on the installation of the Servers (Application
Servers) 
  
 8. Specification on the installation of the Login Servers 

 
 9. Specification on the installation of the Accounting Servers 
  
 10. Specification on the installation of the Patch Servers 
  
 11. Specification on the installation of the Game database 
  
 12. Detail specification on the structure of the Game database 
  
 13. The methods of system examination 
  
 14. The basic recognition rules of the Character Data Format (an example is needed)

  
 D. INTEGRATION WITH PASS9 
  
 1. Current procedure of registration, log in. Structure of the form of the user’s
personal data. 
  
 2. Current Billing system structure, billing method, billing
chart structure, charge/consume history record 
  
 E. Update 
  
 1. Update 
  
 a. Update contents and procedure 
  
 b. Online version test platform construction manual 
  
 2. Patch 
  
 a. Patch method and mechanism (manual update and auto-update) 
  
 b. Procedure of Updates (for users) 
  

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 c. Patch size 
  
 F. TOOLS 
  
 1. Monitor tools 
  
 a. Specification of the monitor tools (including monitoring the number of the online users,
Server Capacity, Server Status etc.) 
  
 b. Specification on the Installation,
Configuration, Usage and Maintenance of the monitor tools 
  
 2. GM tools

  
 a. Specification of the GM tools 
  
 b. Specification on the Installation, Configuration, Usage and Maintenance of the GM tools
(set up the offline GM tools) 
  
 3. Log analysis tools 
  
 a. Specification of the Log analysis tools 
  
 b. Specification on the Installation, Configuration, Usage and Maintenance of the
Specification analysis tools 
  
 G. BACKUP AND STATISTICS OF THE DATA. 

 
 1. Data backup/recovery solution (including the data stored in the Servers and database)

  
 2. Detail description of the original log records generated by the application
server 
  
 3. Specification on the methods of game data statistics 
  
 H. SERVER MONITORING 
  
 1. Structuring and building of the monitoring environment 
  
 2. Monitoring and maintaining method of the Server status 
  
 I. OTHERS 
  
 1. Scopes and methods of technical support 
  
 2. Contacts (Including contacts’ name, position, email, MSN, Mobile phone etc.) 
  
 J. PROJECT SUPPORTING 
  
 1. Provide necessary technical support documentation (specification for system structure, server functions and all the related software/hardware, etc.) to ensure the
operation of the Licensed Program within the Territory. 
  

 32 

 Confidential 
  
 2. Provide support for the game server’s software/hardware installation. 
  
 3. Provide support to the installation and configuration of the game application Server, and data Server. 
  
 4. Examine and test the installed system. 
  
 5. The Parties must unify the interface and make test for the development and changes in order to integrate with the Pass9 System(including the game activation, password
modification, user account payment, games item delivery) 
  
 6. Provide monitoring
and remote maintenance tools the game Servers. 
  
 7. Provide GM tools with the GM
command logs, and examine system. 
  
 8. Billing system should support: game point
system, different charge rate according to different time, and monthly subscription method. 
  
 9. Agreed and supported by both Parties, the database table columns may be increased for the convenience of statistics. 
  
 K. SUPPORT ON THE OPERATION AND MAINTAINENCE 
  
 l. Ensure a 7*24 communication channel with the dedicated technical supporting staff(s) 
  
 2. The9 shall be informed with any updates which may affect the online system (excluding bug modification and emergency) with a 14
day’s prior written notice. 
  
 3. Documents and reference on the changes in
regard to the game contents 
  
 4. Technical support is required when game version
upgrades or content changes. 
  
 5. Timely debugging, maintenance to the Client
and Server Software and related tools are required 
  
 6. Solutions to solve the
performance problems in application Servers. 
  
 7. Make system improvements to
improve the operation service quality 
  
 8. Make system improvements to cut
operation cost and improve operation efficiency 
  
 9. Make system improvements to
improve system security level 
  
 10. The authority of accessing the database
shall be provided. 
  

 33Mystina Online Cooperation Agreement dated July 19, 2004 (Translation)

 Exhibit 10.23 
 Translation 
  
 “Mystina Online” Cooperative Agreement 
  
 THIS
COOPERATIVE AGREEMENT is entered by and between Lager (Beijing) Information Co., Ltd. and The9 Computer Technology Consulting (Shanghai) Co., Ltd. through negotiation on July 19, 2004 in Shanghai. 
  

			
	 Party A:
	  	 Lager (Beijing) Information Co., Ltd. (“Party A”)

	 Legal address:
	  	 Block C, South Gate, No. 5 Xueyuan Road, Haidian District, Beijing

	 Legal representative:
	  	 LIU Jingping

	 Telephone:
	  	 010-82413881

		
	 Party B:
	  	 The9 Computer Technology Consulting (Shanghai) Co., Ltd. (“Party B”)

	 Legal address:
	  	 30/F No. 1168 Nanjing Xi Road, Shanghai

	 Legal representative:
	  	 ZHU Jun

	 Telephone:
	  	 021-32174567

  
 Recital

  

	1.	Party A is a limited liability company established pursuant to the PRC, Company Law with the approval of Beijing Administration for Industry and Commerce and it is lawfully
existing. Its registration number as contained in its Enterprise Legal Person Business Licence is: 

 017038

 (Qi Du Jing Zong Fu Zi No. 017038). 

  

	2.	Party B is a limited liability company established pursuant to the PRC, Company Law with the approval of Pudong New District Branch of Shanghai Administration for Industry
and Commerce and it is lawfully existing. Its registration number as contained in its Enterprise Legal Person Business Licence is: 

 313244 

 (

) (Qi Du Hu Pu Zong Fu Zi No. 0313244 (Pudong)). 

  

	3.	Pursuant to the PRC, Company Law and the respective articles of association of the above Parties, both Parties have, after friendly negotiations, reached the following
agreement in relation to cooperation in servicing and operating online games. The Parties hereby agree to complete this cooperation project in accordance with the terms and conditions contained herein. 

  
 Terms of Cooperation 
  

	1.	Purpose of Cooperation 

  

	1.1	 The online game “Mystina Online” and its subsequent information releases (hereinafter “this Product”) is an online game independently
developed and produced by Party A. Party A owns the complete and flawless intellectual 

  

 Exhibit 10.23 
 Translation 
  

	 	 
property rights to this Product and owns the proprietary technologies to design, manufacture and improve this Product. Party A owns the Copyright
Registration Certificate of this Product in Mainland China under certificate number:

 

 204546

 (Ruan Zhu Deng Zi No. 024546), and registration number: 2004SR06145. 

  

	1.2	According to the survey and assessment conducted by Party B on the basis of the current market circumstances and the particulars of Party A’s products, this Product is
projected to have good market business prospects. 

  

	1.3	Party A agrees to grant Party B an exclusive licence to release, sell and operate this Product in Mainland China (excluding Hong Kong, Macao and Taiwan, hereinafter
“Mainland China”), and to provide related technology support and guarantee that Party B enjoys the exclusive right to utilize such technology to operate this Product in the above-mentioned district. 

  

	1.4	Party B undertakes that beginning from the effective date hereof it will commence the open beta test and subscription operation in accordance with the time table contained in the
Market Promotion Plan provided by Party B. However, Party A agrees that the relevant time table contained in the Market Promotion Plan is merely a projection made by Party B on the basis of the information provided by Party A in relation to the
development status of this Product and that the specific time shall be determined by the Parties in writing as adjusted in accordance with the actual circumstances of the market and Party A’s progress in developing the Product.

  

	1.5	Party A undertakes to fully cooperate with Party B in connection with the technology support to this Product and to assist Party B to smoothly complete the open beta test and the
subscription operation. 

  

	1.6	The Parties are in a cooperative relationship and shall assume civil liabilities independently. Party B shall operate this Product independently and shall be responsible for
manufacturing and selling the game cards and peripherals for the game with the operating costs thereof to be fully borne by Party B itself on a profit-and-loss-for-its-own-account basis. Party A shall provide complete technology support and
upgrading services as required by Party B during Party B’s operational period. 

  

	1.7	Party B shall be responsible for providing the interface information for the billing system, and Party A shall provide a connectivity program for this Product and the billing system
according to the requirements of Party B. 

  

	1.8	Party A and Party B each authorizes the other Party to use its enterprise name, sign, identity and logo within the scope of the performance hereof and to carry out the relevant
publicity in relation thereto. 

  

 Exhibit 10.23 
 Translation 
  

	2.	Price 

  

	2.1	Phase 1 Product Royalty 

  

	 	2.1.1	Within 7 working days of the effective date hereof, Party B shall pay to Party A RMB 2 million as the first payment of the Phase 1 Product Royalty. 

  

	 	2.1.2	Within 7 working days of the actual commencement of the open beta test of this Product in Mainland China, Party B shall pay to Party A RMB 3 million as the second payment of the
Phase 1 Product Royalty. 

  

	2.2	Phase 2 Product Royalty 

  

	 	2.2.1	The Phase 2 Product Royalty shall be payable according to the highest concurrent online users of each game servers’ aggregated monthly average (i.e. the daily average of the
highest number of concurrent online users during that month) after subscription. 

  

	 	2.2.2	When the monthly average of the highest number of concurrent online users (i.e. the daily average of the highest number of concurrent online users during that month) reaches 50,000
(fifty thousand), Party B shall pay RMB 4 million to Party A as the Phase 2 Product Royalty. 

  

	2.3	Revenue Sharing Fee of Game Cards (meaning a carrier in various forms of the playable time of this Product, to be priced by Party B, hereinafter this “Product Game
Cards”) 

  

	 	2.3.1	After Party B formally commenced subscription operation, it shall pay 21% of the total sales amount pursuant to the market price of various Product Game Cards to Party A as the
revenue sharing of this Product Game Cards (hereinafter the “Entitlement”). 

  

	 	2.3.2	Payment of the Entitlement shall be based on the amount displayed in the card recharge system of the billing server as verified and confirmed by the Parties (free account opening or
free credits offered by Party B in sales promotion not to be included). The recharged amount in each month shall be settled on the first day of the following month. After the amount is verified and confirmed by the Parties, the Entitlement shall be
paid to Party A before the end of that month. 

  

	 	2.3.3	Neither Party shall act to the prejudice of the other Party through direct modification of the database of the billing system or by taking advantage of the special function and
program bugs of the billing system without the consent of the other Party. 

  

 Exhibit 10.23 
 Translation 
  

	2.4	Price of Upgrade Information Release 

  

	 	2.4.1	Information releases shall be free of charge, and shall be conducted in accordance with the time table in the Product Development Proposal. 

  

	 	2.4.2	Party B may come up with development requirement in light of market feedback. Information releases which both Parties agree and deem feasible through discussion to develop shall be
listed in the Development Plan by the Product Development Department of Party A. Party B shall be promptly informed of the development schedule and the development shall proceed strictly in accordance with such schedule. 

  

	 	2.4.3	Given the various unexpected factors associated with product development, if the progress of product development is delayed by such factors, Party A shall notify Party B two weeks
in advance and the time table of the Product Development Proposal may be amended upon agreement by both Parties. 

  

	2.5	Price of Product Peripherals 

  

	 	2.5.1	Depending on the progress of the cooperation, the Parties will negotiate and enter into a supplemental agreement as an appendix hereto with equal effect hereof in respect of the
benefit distribution in the development, manufacture and sale of peripherals of this Product, but Party A agrees that Party B shall have the exclusive right to develop and sell peripherals of this Product. 

  

	2.6	Method of Payment 

  
 Party B shall pay such amount within the above-mentioned time limit to: 
  
 Account Name:     Lager (Beijing) Information Co., Ltd. 
  
 Account Bank:      Business Department of Haidian
Subbranch, Bank of China 
  
 Account Number: 11504308092001

  

	3.	Rights and Obligations of Party A 

  

	3.1	Party A has the right, power and capacity to enter into and perform this Agreement and its appendices which, once executed and coming into effect, shall constitute a legal, valid
and binding agreement to Party A. 

  

	3.2	Party A’s representations, recitals and undertakings herein and the information contained in the appendices are correct and not misleading. 

  

	3.3	 Party A is a limited liability company duly and validly established under the laws of the PRC, and has obtained such approval(s), authorization(s), permit(s) and
consent(s) as necessary for conducting the business contemplated herein and no 

  

 Exhibit 10.23 
 Translation 
  

	 	 
event exists that may result in the suspension or revocation of such approval(s), authorization(s), permit(s) or consent(s). 

  

	3.4	Party A shall, within 14 working days of the signing of this Agreement, promptly and effectively provide information referencing on the planning and development theme, function
characteristics, play methods introduction (contents such as role change, fighting, union and levels), complete structure, scenes, mission descriptions, props, weapons, defenses, music, portraits, trademarks, role models, interface, graphics and
texts, settings, client game program (excluding source codes) and network setup of the Product. 

  

	3.5	During the effective term of this Agreement, Party A shall provide comprehensive technology support. Party A agrees to take Party B’s modification recommendations as reference
in determining the direction of the modification, update and version change of the software program. 

  

	3.6	With two weeks after Party B provided its product and market planning proposals to Party A, Party A shall give its express responses based on the reasonableness and feasibility of
such recommendations to Party B. 

  

	3.7	Party A shall be responsible at its own costs for sending its technicians to the business premises of Party B to provide technical training. Party B shall be responsible for
installing, testing and maintaining the servers. Party A shall be responsible for installing and maintaining the game software. 

  

	3.8	If Party B is involved in any dispute or litigation (arbitration) with any third party in connection with the use of proprietary technologies and other scope of intellectual
property rights during the course of correctly operating and selling this Product within the scope agreed herein, Party A shall be obliged to coordinate for a resolution and shall assume all the legal and economic liabilities in relation thereto.

  

	3.9	During the effective term of this Agreement, Party A shall not release, sell or operate this Product in Mainland China and shall not enter into any cooperative relationship with any
third party in respect of the release, sale or operation of this Product or “Mystina 2” in Mainland China; (a product which has 20% similarity with this Product in graphics and game contents shall be deemed a “Mystina 2”
product). 

  

	3.10	 Party A shall guarantee that this Product operates normally and does not contain any content prohibited by laws and regulations. If this Product contains any
content prohibited by laws and regulations, Party B has the right to demand Party A to make such relevant changes to the Product as to make it compliant with the requirements of the relevant laws and regulations. If Party A fails to make the changes
as agreed by the Parties whereby causing losses to Party B or a third party, Party A shall be liable to provide full compensations (including without 

  

 Exhibit 10.23 
 Translation 
  

	 	 
limitation to refund to Party B all the technology royalties and Entitlements paid to Party A). 

  

	3.11	Party A shall not change the name of this Product without the consent of Party B. 

  

	4.	Rights and Obligations of Party B 

  

	4.1	Party B has the right, power and capacity to enter into and perform this Agreement and its appendices which, once executed and coming into effect, shall constitute a legal, valid
and binding agreement to Party B. 

  

	4.2	Party B’s representations, recitals and undertakings herein and the information contained in the appendices are correct and not misleading. 

  

	4.3	Party B is a limited liability company duly and validly established under the laws of the PRC, and has obtained such approval(s), authorization(s), permit(s) and consent(s) as
necessary for conducting its business. 

  

	4.4	Party B shall correctly and legally operate and sell this Product and its by-products in Mainland China, and Party B has no right to transfer to any party the proprietary technology
provided by Party A. 

  

	4.5	Party B shall fully perform its payment obligations to pay such amounts within such time limits as agreed herein by the method agreed by both Parties. 

  

	4.6	During the effective term of this Agreement, Party B shall provide Party A with the inspection tools enabling Party A to inspect the relevant business data (online player numbers
and recharge records). Party B shall use its best effort to provide within reasonable time such other relevant data as requested by Party A. 

  

	4.7	Party B shall provide Party A with such product and market planning recommendations as appropriate according to the annual plans so that Party A may use such recommendations in its
product development plan. Such recommendations shall be based on full market studies and shall be valid and feasible. 

  

	4.8	Subject to Party A’s due performance of its obligations hereunder, Party B shall be independently responsible for operating this Product. After Party B performed its payment
obligation to Party A, Party B’s operating results, whether in profit or in loss, shall be irrelevant to Party A. 

  

	4.9	 Upon the end of the effective term of this Agreement, if the Parties fail to reach an agreement for the continuation of the cooperation, Party B shall cease to have
the right to use all the proprietary technologies and the relevant information of this Product provided by Party A. However, following the end of the effective term of this Agreement, Party A shall give 3 months’ time to Party B to use the
relevant 

  

 Exhibit 10.23 
 Translation 
  

	 	 
information of the Product to complete its handling with the clients of this Product. 

  

	4.10	Party B shall have the title to all the client information and data obtained in the course of operating this Product. 

  

	4.11	Party A agrees that Party B has the right to designate part of its rights and obligations hereunder to be performed by a third party as deemed reasonable by both Parties in order to
operate this Product legally and maximize the benefits to both Parties. 

  

	4.12	Party B shall not decompile and modify the programs provided by Party A without a written consent of Party A, otherwise it shall be deemed in breach. 

  

	5.	Protection of Intellectual Property Rights 

  

	5.1	The intellectual property rights and other related rights to the software, information, documents, materials or game contents provided by Party A in connection with the cooperation
under this Agreement shall be vested in Party A and may be used by Party B merely within the scope set forth herein. The documents, information, software and programs provided by any Party to the other Party under the scope of this Agreement shall
not be reproduced, modified, distributed openly, translated, decompiled, sold, leased or given as a gift to any third party or used in any other illegal way other than for the purpose of improving or developing this Product without the written
consent of the providing Party. 

  

	5.2	If anything in the technical information provided by Party A (the “White Paper on Product Technology”) is not suitable to the operation of Party B, Party A shall be
obliged to assist Party B in modifying the technical information and shall confirm such modification. During the effective term of this Agreement, the technical information of any improvement and development made by any Party in respect of this
Product as agreed by the Parties herein shall be made available to the other Party free of charge. The title to such improved and developed technology and product shall be vested in Party A. 

  

	6.	Confidentiality 

  

	6.1	 The contents of this Agreement and the information, intelligence, plans or confidential documents concerning the business of any Party which have come to the
knowledge or possession of the other Party and its employees pursuant to this Agreement shall not be disclosed to any third party without the prior written consent of the other Party or used in any way to the prejudice of the other Party, or
otherwise used beyond the scope agreed herein. This confidentiality obligation shall remain in effect for one year after the expiration, termination or dissolution 

  

 Exhibit 10.23 
 Translation 
  

	 	 
of this Agreement except with respect to any confidential document which has been made public or otherwise lost its confidential nature.

  

	6.2	If any of the above-mentioned confidential document is made public in part or in whole by the Party owning it or by a third party without the consent of both Parties, the other
Party shall not be liable for breaching the confidentiality responsibility. 

  

	7.	Liability for Breach of Agreement 

  

	7.1	If any Party fails to perform or comply with or neglects to perform any provision, undertaking, representation or warranty under this Agreement, it shall be liable to compensate the
other Party. 

  

	7.2	The liability for compensation referred above shall include without limitation the actual loss of the non-breaching Party. 

  

	7.3	The failure or delay of any Party to exercise any of its powers, rights or remedies under this Agreement shall not constitute a waiver of such power, right or remedy; the waiver by
any Party of any particular act of the other Party in breach of the agreement shall not affect or prevent the pursuit for liability or the exercise of its powers, rights or remedies by the first Party in respect of any other breach of agreement or
subsequent similar or non-similar breach of agreement by the other Party; any single exercise by a Party of its powers, rights or remedies under this Agreement shall not preclude the further exercise by that Party of such powers, rights or remedies
or the exercise by that Party of other powers, rights or remedies; any exercise by a Party of its rights or remedies under this Agreement shall not preclude its exercise of any other powers, rights or remedies. 

  

	7.4	The Parties agree that if any Party is in breach of the provisions of this Agreement, the non-breaching Party is entitled to terminate this Agreement and demand the breaching Party
to compensate for the losses. 

  

	7.5	In relation to Party B, if it fails to perform any payment obligation under this Agreement other than for the reason of Force Majeure, it shall pay Party A a liquidated damage at
3‰ of the amount overdue for each day the payment is delayed. In relation to Party A, if it fails to perform the obligations agreed in the Description of Party A’s Supporting Obligations attached hereto, it shall pay Party B within the
then current month the liquidated damage set forth in the Description of Party A’s Supporting Obligations. 

  

	8.	Force Majeure 

  

	8.1	 If an event such as earthquake, typhoon, flood, inundation or war (collectively, “Force Majeure Event”) occurs and the occurrence and consequences
of it are not preventable or avoidable and it directly affects the performance of this 

  

 Exhibit 10.23 
 Translation 
  

	 	 
Agreement, the Party encountering the Force Majeure Event shall immediately notify the other Party by cable or facsimile and shall provide the document(s)
within 15 days evidencing the details in describing the relevant event and the reasons for failure to perform part or all of this Agreement or the reasons for delaying to perform this Agreement, such document shall be signed by a notarization
authority at the place in which the event occurs. 

  

	8.2	If a Force Majeure Event occurs, the Parties shall use their best efforts to perform (including perform in a timely manner) all of their responsibilities under this Agreement until
this Agreement is terminated as stipulated; however, at any time after the Force Majeure Event has persisted for over two months, each Party shall have the right to give a notice in writing to the other Party to request the termination of this
Agreement, and this Agreement shall be terminated upon receipt of such notice by the other Party. Such termination shall not prejudice the rights of any Party arising from or entitled by it as a result of a prior breach of agreement by the other
Party. 

  

	9.	Effective Term 

  

	9.1	The effective term of this Agreement shall commence from the date of signing of this Agreement until three years after the start date of Product subscription as recognized by the
Parties. If, three years after the open beta test of the Product, the highest concurrent online user of each game servers’ aggregated then monthly average is still more than 20,000 persons, Party B will automatically have the right to extend
the term for operating “Mystina Online” for two years. If at the end of the two-year extension, the highest number of concurrent online user then monthly average is maintained at above 20,000 persons, the term will be further extended for
two years, and so on and so forth. 

  

	9.2	Upon the expiration of the effective term of this Agreement, the Parties shall sign a new agreement for the continuation of the cooperation in respect of this Product. If there is a
change in the form of cooperation, the Parties may negotiate for a solution. 

  

	9.3	If, two years after the open beta test of the Product, the highest number of concurrent online user of each game servers’ aggregated then monthly average is more than 25,000
persons, Party B will have the priority right to agent the operation of “Mystina 2”. If Party B brings forward a waiver in writing within 60 days after the commencement of the alpha testing of “Mystina 2”, it shall be deemed to
waive its right to agent the operation of “Mystina 2”, at such time, Party A shall have the right to determine at its own discretion the mode of operation for “Mystina 2”. 

  

	10.	Dispute Resolution 

  

	10.1	 The Parties shall attempt to resolve through consultation all disputes arising from 

  

 Exhibit 10.23 
 Translation 
  

	 	 
the performance of this Agreement or other appendices or in connection with the other appendices of this Agreement (including at least any dispute over the
existence, interpretation, validity, performance or termination of this Agreement and appendices). 

  

	10.2	If such consultation fails, the Parties agree to submit such disputes to the jurisdiction of the People’s court at the place in which Party B is located.

  

	11.	Miscellaneous 

  

	11.1	All notices given by any Party to the other Party in connection with this Agreement shall be made in writing and delivered in person or sent by facsimile, telex or mail; a notice if
delivered in person shall be deemed to have been delivered upon its delivery at the legal address of the other Party, or, if sent by facsimile or telex, it shall be deemed delivered upon the receipt of the answerback code by the sending Party, or,
if sent by mail, it shall be deemed delivered upon two working days after it is posted. 

  

	11.2	Any amendment to this Agreement shall be made upon the consent of both Parties and the signing of a supplemental agreement; the supplemental agreement shall be an integral part of
this Agreement with equal legal effect. 

  

	11.3	Without affecting the provisions of this Agreement in respect of prices, all taxes and related charges payable in connection with the entry and performance of this Agreement shall
be handled in accordance with the relevant policies of the State. 

  

	11.4	This Agreement shall be formed upon after it is signed and sealed by the Parties. 

  

	11.5	The headings in this Agreement are for convenience only and shall have no effect on the interpretation of the substance of this Agreement. 

  

	11.6	This Agreement shall be made in four counterparts and all counterparts have equal legal effect. 

  

	11.7	Appendices: This Agreement contains the following appendices: “Market Promotion Plan” (provided by Party B); “White Paper on Product Technology” (provided by
Party A); Product Development Proposal (provided by Party A); “Description of Party A’s Supporting Obligations”; Copyright Registration Certificate of the Mystina Software; and “Legal Person Business Licences” of Party A and
Party B. An appendix signed by both Parties shall have the equal legal effect as this Agreement. 

  

									
	 Party A: Lager (Beijing) Information
 Co.,
Ltd. (SEAL)
	 	 	 	 Party B: The9 Computer Technology
 Consulting
(Shanghai) Co., Ltd. (SEAL)

	 Lager (Beijing) Information Co., Ltd.
	 	 	 	 The9 Computer Technology Consulting
 (Shanghai) Co., Ltd.

			
	 /s/ Liu Jingping
	 	 	 	 /s/ He Xudong

			
	 Date: July 19, 2004
	 	 	 	 Date: July 19, 2004

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