Document:

Exhibit 10.14 

 

DATED THIS 29TH DAY OF MAY
2020

 

CONFIDENTIAL SETTLEMENT
DEED

 

AMONG:

 

		(1)	Splendid Days Limited

 

		(2)	Ark Pacific Associates Limited

 

		(3)	The9 Limited

 

		(4)	China The9 Interactive Limited

 

		(5)	GameNow.net (Hong Kong) Limited

 

		(6)	Shanghai The9 Information Technology Co., Ltd.

 

		(7)	Hui Ling Computer Technology Consulting (Shanghai) Co., Limited

 

		(8)	Shanghai Shencaichengjiu Information Technology Co., Ltd.

 

  

CONFIDENTIAL SETTLEMENT DEED

 

 

     

     

    

 

EXECUTION VERSION

 

CONFIDENTIAL SETTLEMENT DEED

 

THIS CONFIDENTIAL SETTLEMENT DEED (this “Deed”)
is made on the 29th day of May 2020

 

AMONG:

 

		(1)	Splendid Days Limited, a company with limited liability incorporated under the laws of the
British Virgin Islands (“SDL”);

 

		(2)	Ark Pacific Associates Limited, a company with limited liability incorporated under the
laws of the British Virgin Islands (“APAL”);

 

		(3)	The9 Limited, an exempted company with limited liability incorporated and existing under
the laws of the Cayman Islands;

 

		(4)	China The9 Interactive Limited, a company incorporated under the laws of the Hong Kong SAR
(“HKCo 1”);

 

		(5)	GameNow.net (Hong Kong) Limited, a company incorporated under the laws of the Hong Kong
SAR (“HKCo 2”);

 

		(6)	Shanghai The9 Information Technology Co., Ltd. (上海第九城市信息技术有限公司),
a company incorporated under the laws of the PRC (the “Operating Company”);

 

		(7)	Hui Ling Computer Technology
                                         Consulting (Shanghai) Co., Limited (慧瓴计算机技术咨询(上海)有限公司),
                                         a company incorporated under the laws of the PRC (“Hui Ling”); and

 

		(8)	Shanghai Shencaichengjiu Information Technology Co., Ltd. (上海神财诚久信息技术有限公司),
a company incorporated under the laws of the PRC (“Shencai,” collectively with The9 Limited, HKCo 1, HKCo 2,
the Operating Company, and Hui Ling, the “The9 Entities,” each a “The9 Entity”).

 

SDL, APAL, The9 Limited, HKCo 1, HKCo 2,
the Operating Company, Hui Ling, and Shencai are collectively referred to as the “Parties” and each of them
as a “Party.”

 

    1

     

    

 

EXECUTION VERSION

 

		WHEREAS:	

 

		A)	On November 24, 2015, SDL, The9 Limited, HKCo 1, HKCo 2, the Operating Company, China The9 Interactive
(Shanghai) Limited (“WFOE 1”), and The9 Computer Technology Consulting (Shanghai) Co., Ltd (“WFOE 2”)
entered into a Convertible Note and Warrant Purchase Agreement (the “CB Agreement”), pursuant to which The9
Limited issued Tranche A, Tranche B, and Tranche C Senior Convertible Notes (together, the “Notes”) to SDL on
December 11, 2015 in the aggregate principal amount of USD 40,050,000;

 

		B)	The9 Limited was due to repay the principal and the accrued interest thereon under the Notes to
SDL on December 11, 2018 (the “Maturity Date”), but The9 Limited failed to repay SDL on the Maturity Date;

 

		C)	SDL, The9 Limited, HKCo 1, HKCo 2, the Operating Company, WFOE 1, and WFOE 2 entered into
a deed of settlement dated March 11, 2019 and four subsequent amendments thereto dated April 28, 2019, May 22, 2019, August 2019,
and September 2019 concerning inter alia the repayment of the outstanding principal and accrued interest under the
Notes to SDL (collectively, the “2019 Deed of Settlement”);

 

		D)	Clause 6.4 of the 2019 Deed of Settlement provides that the liabilities of The9 Limited, HKCo 1,
HKCo 2, the Operating Company, WFOE 1, and WFOE 2 under the 2019 Deed of Settlement shall be joint and several;

 

		E)	On March 27, 2019, APAL and The9 Limited entered into a loan agreement pursuant to which APAL extended
a loan of USD 5,000,000 to The9 Limited (the “APAL Loan Agreement”);

 

		F)	On September 26, 2019, HKCo 1 and the Operating Company as vendors and Kapler Pte. Ltd (“Kapler”)
as purchaser entered into an equity transfer agreement (股权转让协议) with respect to the sale
of the equity interest in WFOE 1, WFOE 2, and Shanghai Kaie Information Technology Co., Ltd. (上海恺俄信息技术有限公司),
as amended and supplemented from time to time (the “Equity Transfer Agreement”);

 

		G)	As of the date of this Deed, The9 Limited has repaid the sum of USD 4,772,504 to SDL in partial
repayment of the outstanding principal under the Notes;

 

    2

     

    

 

EXECUTION VERSION

 

		H)	As of the date of this Deed, The9 Limited has not made any repayments to APAL under the APAL Loan
Agreement;

 

		I)	As of the date of this Deed, the outstanding amount immediately due and payable: (a) in respect
of principal and accrued interest under the Notes is USD 57,607,086 (as of May 29, 2020); and (b) in respect of
principal under the APAL Loan Agreement is USD 5,000,000 (together, the “Outstanding Principal and Interest Liabilities”);

 

		J)	On May 6, 2020, SDL obtained an injunction order from the Court of First Instance of the Hong Kong
Special Administrative Region (the “Hong Kong Court”) prohibiting inter alia the The9 Entities from disposing
of their assets worldwide up to the value of USD 55.5 million (the “Injunction Order”) in HCCT 21
of 2020 (the “Hong Kong High Court Proceedings”);

 

		K)	On May 8, 2020, the Injunction Order was registered in the High Court of the Republic of Singapore
(the “Singapore Court”) in case number HC/OS 453/2020 as a judgment (the “Singapore High Court Proceedings”);

 

		L)	In or around April and May 2020, SDL reported to various banks, authorities and other parties (including
but not limited to the Bank of East Asia (China) Limited, Shanghai Branch, the State Administration of Foreign Exchange (SAFE),
People’s Bank of China, Shanghai Pudong Development Bank, and China Banking Regulatory Commission (the “Third Parties”))
alleging that the The9 Entities were involved in money-laundering and/or other improper business/commercial practices and/or that
the Hong Kong Court had issued the Injunction Order; and

 

		M)	On May 28, 2020, SDL commenced an arbitration proceeding seated in Hong Kong under the rules of
the Hong Kong International Arbitration Centre with a panel of three arbitrators (the “Tribunal”) against inter
alia The9 Limited, HKCo 1, HKCo 2, and the Operating Company alleging inter alia breaches of the Notes and the 2019
Deed of Settlement and seeking an order requiring inter alia The9 Limited, HKCo 1, HKCo 2, and the Operating Company to
indemnify SDL for its losses (the “Arbitration”) (the Hong Kong High Court Proceedings,
the Singapore High Court Proceedings and the Arbitration together, the “Proceedings”).

 

    3

     

    

 

EXECUTION VERSION

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements set forth herein and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the Parties to this Deed hereby agree as follows:

 

IT IS AGREED AS FOLLOWS:

 

		1.	DEFINITIONS

 

In this Deed, unless the context
otherwise requires, the following expressions have the following meanings:

 

	“Additional ADS Issuance”	has the meaning ascribed to it in Section 3.5.3.
	“ADS”	has the meaning ascribed to it in Section 3.1.2.
	“Affiliate”	means with respect to a Person, a Person that Controls, is Controlled by or is under common Control with the said Person, and without limiting the generality of the foregoing, in the case of SDL, it shall also include (i) any of its direct and indirect shareholders, (ii) any of such shareholder’s or its general partners or limited partners, (iii) the fund manager managing or advising it or its shareholders (and general partners, limited partners and officers thereof) and other funds managed or advised by such fund manager, and (iv) trusts Controlled by or for the benefit of any such Person referred to in (i), (ii) or (iii), and (iv) any fund or holding company formed for investment purposes that is promoted, sponsored, managed, advised or serviced by SDL or any of the foregoing, as the case may be.
	“APAL”	has the meaning ascribed to it in the Preamble.
	“APAL Loan Agreement”	has the meaning ascribed to it in the Recitals.
	“Arbitration”	has the meaning ascribed to it in the Recitals.

 

    4

     

    

 

EXECUTION VERSION

 

	“Business Days”	means any day that is not a Saturday, a Sunday, legal holiday or other day on which banks are required or authorized by Law to be closed in the PRC, New York or Hong Kong.
	“CB Agreement”	has the meaning ascribed to it in the Recitals.
	“Class A Ordinary Shares”	has the meaning ascribed to it in Section 3.4.1.
	“Consent Award”	has the meaning ascribed to it in Section 4.2.1.
	“Control” or “Controlled” (or any related term) 	means the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of a Person or to appoint or remove the majority of the members of the board of directors or other governing body of a Person, whether through the ownership of voting securities, by contract or proxy, as trustee, executor, agent or otherwise. For the purposes of this definition, a Person shall be deemed to Control another Person if such Person, directly or indirectly, owns or holds more than 50% of the voting equity interest in such another Person.
	“Daily VWAP”	has the meaning ascribed to it in Section 3.5.1.
	“Deed”	has the meaning ascribed to it in the Preamble. 
	“2019 Deed of Settlement”	has the meaning ascribed to it in the Recitals.
	“Equity Transfer Agreement”	has the meaning ascribed to it in the Recitals.
	“First Determination Date”	has the meaning ascribed to it in Section 3.5.2.

 

    5

     

    

 

EXECUTION VERSION

 

	“First Release Date”	has the meaning ascribed to it in Section 3.5.2.
	“Group Companies”	means The9 Limited and its subsidiaries, each a “Group Company.”
	“HKCo 1”	has the meaning ascribed to it in the Preamble.
	“HKCo 2”	has the meaning ascribed to it in the Preamble.
	“HKIAC”	means the Hong Kong International Arbitration Centre.
	“Hong Kong Court” 	has the meaning ascribed to it in the Recitals.
	“Hong Kong High Court Proceedings”	has the meaning ascribed to it in the Recitals.
	“Hui Ling”	has the meaning ascribed to it in the Recitals.
	 “Injunction Order”	has the meaning ascribed to it in the Recitals.
	“Initial Share Issue Date”	has the meaning ascribed to it in Section 3.4.1.
	“Initial Share Issuance”	has the meaning ascribed to it in Section 3.4.1.
	“Initial Share Issuance”	has the meaning ascribed to it in Section 3.1.2.
	“Kapler”	has the meaning ascribed to it in Recitals.
	“Lock-Up”	has the meaning ascribed to it in Section 3.5.2.
	“Maturity Date”	has the meaning ascribed to it in the Recitals.

 

    6

     

    

 

EXECUTION VERSION

 

	“Notes”	has the meaning ascribed to it in the Recitals.
	“Onshore Bank Accounts”	has the meaning ascribed to it in Section 3.2.1.
	“Onshore Settlement Amount”	has the meaning ascribed to it in Section 3.1.1.
	“Operating Company”	has the meaning ascribed to it in the Preamble.
	“Ordinary Shares”	has the meaning ascribed to it in Section 3.4.1.
	“Outstanding Principal and Interest Liabilities”	has the meaning ascribed to it in the Recitals.
	“Party” or “Parties”	has the meaning ascribed to it in the Preamble.
	“Person”	means an individual or an entity, including a corporation, limited liability company, general or limited partnership, trust, association, or other business or investment entity.
	“Proceedings”	has the meaning ascribed to it in the Recitals.
	“Quarterly Deemed Realized Value”	has the meaning ascribed to it in Section 3.5.1.
	“Quarterly Determination Price”	has the meaning ascribed to it in Section 3.5.1.

 

    7

     

    

 

EXECUTION VERSION

 

	“Relevant Agreements”	means the Notes, the CB Agreement, the APAL Loan Agreement  and the 2019 Deed of Settlement
	“SDL”	has the meaning ascribed to it in the Preamble.
	“Second Determination Date”	has the meaning ascribed to it in Section 3.5.2.
	“Second Release Date”	has the meaning ascribed to it in Section 3.5.2.
	“Share Certificates”	has the meaning ascribed to it in Section 3.4.2.
	“Share Value”	has the meaning ascribed to it in Section 3.1.2.
	“Shencai”	has the meaning ascribed to it in the Preamble.
	“Singapore Court” 	has the meaning ascribed to it in the Recitals. 
	“Singapore High Court Proceedings”	has the meaning ascribed to it in the Recitals. 
	“The9 Entities” or “The9 Entity”	has the meaning ascribed to it in the Preamble.
	“Third Parties”	has the meaning ascribed to it in the Recitals.
	“Tribunal”	has the meaning ascribed to it in the Recitals.
	“VWAP Trading Day”	has the meaning ascribed to it in Section 3.5.1.
	“WFOE 1”	has the meaning ascribed to it in the Recitals.

 

    8

     

    

 

EXECUTION VERSION

 

	“WFOE 2”	has the meaning ascribed to it in the Recitals.

 

		2.	INTERPRETATION

 

The following rules of interpretation
shall apply to this Deed:

 

		2.1	headings are used for convenience only and do not affect interpretation;

 

		2.2	words importing the singular include the plural and vice versa, words importing a gender include
every gender and references to persons include bodies corporate or unincorporated;

 

		2.3	where a word or phrase is defined, its other grammatical forms have a corresponding meaning;

 

		2.4	a reference to a Clause, Section or Appendix is to a clause, section or appendix, respectively,
of this Deed;

 

		2.5	a reference to any Party to this Deed or any other agreement or document includes that Party's
successors and permitted assigns;

 

		2.6	no provision of this Deed will be construed adversely to a Party solely on the ground that the
Party was responsible for the preparation of this Deed or that provision;

 

		2.7	where the consent or approval of a Party to this Deed is required hereunder to any act, matter
or thing such requirement shall in the absence of any express stipulation to the contrary herein mean the prior written consent
or approval (as the case may be) in the absolute and unfettered discretion of such Party;

 

		2.8	references to writing shall include typewriting, printing, lithography, photography and other modes
of reproducing words in a legible and non-transitory form;

 

		2.9	references to any statute or statutory provision include, unless inconsistent with the context,
a reference to that statute or statutory provision as modified, re-enacted or consolidated and in force from time to time, whether
before or after the date of this Deed and any subordinate legislation made pursuant to it whether before or after the date of this
Deed provided that, as between the Parties, no such modification, re-enactment or consolidation after the date of this Deed will
apply to the extent it substantively changes any provision which is relevant to this Deed; and

 

    9

     

    

 

EXECUTION
VERSION

  

		2.10	references
                                         to a person includes any individual, firm, company, corporation or other body corporate,
                                         government, state or agency of a state or any unincorporated association, joint venture
                                         or partnership (whether or not having a separate legal personality) and references to
                                         a person includes references to that person’s legal personal representatives and
                                         permitted assigns and reference to Parties will be construed accordingly.

 

		3.	SETTLEMENT
                                         CONSIDERATION

 

		3.1	As
                                         consideration for SDL’s waiver and release and termination of the Proceedings as
                                         set out in Section 4 below, the The9 Entities agree to undertake the following actions:

 

		3.1.1	The
                                         Operating Company shall pay, and the The9 Entities shall procure the Operating Company
                                         to pay, RMB282,060,375 to a RMB-denominated bank account designated by SDL in clear funds
                                         and without any set-off, withholding or other reduction (the “Onshore Settlement
                                         Amount”) in accordance with section 3.2;

 

		3.1.2	The9
                                         Limited shall issue, and The9 Entities shall procure The9 Limited to issue, 32,400,000
                                         Class A ordinary shares of the Company (the “Initial Share Issuance”)
                                         to SDL, representing an aggregate value of USD 7,560,000 (the “Share Value”)
                                         at a per Class A ordinary share price calculated based on a price of USD 0.70 per
                                         American depositary share of the Company (“ADS”) in accordance with
                                         section 3.4.

  

    10

     

    

 

EXECUTION
VERSION

 

		3.2	Payment
                                         of RMB Onshore Settlement Amount

 

		3.2.1	On
                                         the date of this Deed, the Operating Company shall pay, and the The9 Entities shall procure
                                         the Operating Company to pay the “Onshore Settlement Amount to SDL in clear funds
                                         and without any set-off, withholding or other deduction, of which, (i) RMB 200,000,000
                                         shall be paid by telegraphic transfer to Onshore Bank Account A as set forth in Appendix
                                         I hereto, and (ii) the remaining RMB 82,060,375 shall be paid by telegraphic transfer
                                         to Onshore Bank Account B as set forth in Appendix I hereto, unless in each case otherwise
                                         notified by SDL in writing (email shall suffice). Onshore Bank Account A and Onshore
                                         Bank Account B are collectively referred to as the “Onshore Bank Accounts.”

 

		3.3	[Reserved]

 

		3.4	Issuance
                                         of Class A Ordinary Shares

 

		3.4.1	In
                                         addition to the Onshore Settlement Amount specified in Section 3.2 and subject to
                                         SDL’s fulfilment of its obligations in Section 5.5 below, SDL shall be entitled
                                         to the issuance of the Class A Ordinary Shares as provided in this Section 3.4.
                                         As soon as practicable but no later than June 19, 2020 (such share issuance date, the
                                         “Initial Share Issue Date”), The9 shall issue 32,400,000 Class A
                                         ordinary shares of The9 Limited to SDL, representing an aggregate value of the Share
                                         Value at a per Class A ordinary share price calculated based on a price of USD 0.70
                                         per ADS. For the avoidance of doubt, as of the date hereof, each ADS represents three
                                         (3) Class A ordinary shares, par value USD 0.01 per share (the “Class A Ordinary
                                         Shares”), of the Company.

 

    11

     

    

 

EXECUTION
VERSION

 

		3.4.2	As
                                         soon as practicable but no later than the Initial Share Issue Date, the Company shall
                                         issue three share certificates, each representing 10,800,000 Class A Ordinary Shares,
                                         to SDL (the “Share Certificates”). The entries on the Register of
                                         Members of the Company and each Share Certificate shall be endorsed with the following
                                         legend:

  

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (AS AMENDED, THE “SECURITIES ACT”)
OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTIONS. THESE SECURITIES MAY NOT BE TRANSFERRED, SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED: IN THE ABSENCE OF (I) (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (B) AN EXEMPTION OR
QUALIFICATION UNDER APPLICABLE SECURITIES LAWS, AND (II) SATISFACTION OF THE CONDITIONS WITH RESPECT TO LOCK-UP SET FORTH IN SECTION
[●] IN THE [●] DATED [●] ENTERED INTO BY AND BETWEEN [THE9 LIMITED, SPLENDID DAYS LIMITED AND OTHER PARTIES
NAMED THEREIN]. ANY ATTEMPT TO TRANSFER, SELL, PLEDGE OR HYPOTHECATE THIS SECURITY IN VIOLATION OF THESE RESTRICTIONS SHALL BE
VOID.

 

The
Company hereby agrees and covenants that the Company shall instruct its share registrar to remove such restrictive legend from
the Register of Members and issue new share certificate(s) with such restrictive legend removed immediately upon the satisfaction
of the underlying conditions mentioned therein.

 

		3.5	Lock-up

 

		3.5.1	For
                                         the purpose of this section 3.5, unless otherwise defined, capitalized terms shall have
                                         the meanings assigned to them as follows:

 

“Incremental
Deemed Realized Value” means, as of the last day of the nine-month period commencing from the First Release
Date or the last day of any nine-month period commencing from the most recent Additional Share Issue Date, as applicable, the
product of (i) the Incremental Determination Price multiplied by (ii) the sum of the Initial Share Issuance and all of the
Additional Share Issuance(s), if any, then issued and outstanding;

 

    12

     

    

 

EXECUTION
VERSION

 

“Incremental
Determination Price” means a determination price calculated based on the average of the Daily VWAP divided by the applicable
number of Class A Ordinary Shares of the Company then represented by one ADS for each VWAP Trading Day in (i) the nine-month period
commencing from the First Release Date, or (ii) any nine-month period commencing from the most recent Additional Share Issue Date,
as applicable;

 

“Daily
VWAP” means the volume-weighted average price per ADS of the Company as displayed under the heading “Bloomberg
VWAP” on Bloomberg page (or its equivalent successor if such page is not available) relating to the Company in respect of
the period from the scheduled open of trading until the scheduled close of trading of the primary trading session on such VWAP
Trading Day (or if such volume-weighted average price is unavailable, the market value of one ADS on such VWAP Trading Day reasonably
determined, using a volume-weighted average method, by a nationally recognized independent investment banking firm retained for
this purpose by the Company). The “Daily VWAP” shall be determined without regard to afterhours trading or any other
trading outside of the regular trading session trading hours;

 

“Three-month
Deemed Realized Value” means, as of the First Determination Date or the Second Determination Date, as applicable, the
product of (i) the Three-month Determination Price multiplied by (ii) the aggregate number of Class A Ordinary Shares released
from Lock-up during the three-month period ending on the First Determination Date or the Second Determination Date, as applicable;

 

    13

     

    

 

EXECUTION
VERSION

 

“Three-month
Determination Price” means a determination price calculated based on the average of the Daily VWAP divided by the applicable
number of Class A Ordinary Shares of the Company then represented by one ADS for each VWAP Trading Day in a three-month period
ending on the First Determination Date or the Second Determination Date, as applicable, (or, if such date is not a VWAP Trading
Day, ending on the VWAP Trading Day immediately preceding such date);

 

“VWAP
Trading Day” means a day on which trading in the ADSs (or other security for which Daily VWAP must be determined) generally
occurs on the Nasdaq Stock Market or, if the ADSs (or such other security) are not then listed on the Nasdaq Stock Market, on
the principal other U.S. national or regional securities exchange on which the ADSs (or such other security) are then listed or,
if the ADSs (or such other security) are not then listed on a U.S. national or regional securities exchange, on the principal
other market on which the ADSs (or such other security) are then admitted to trade; provided that if the ADSs (or such other security)
are not so listed or admitted to traded, “VWAP Trading Day” means a Business Day;

 

		3.5.2	For
                                         the period commencing from the Initial Share Issue Date to the Third Release Date, SDL
                                         shall not (i) offer, sell, agree to offer or sell, solicit offers to purchase, grant
                                         any call option or purchase any put option with respect to, pledge, borrow or otherwise
                                         dispose of, or (ii) enter into any swap, hedge or any other agreement that transfers,
                                         in whole or in part, the economic consequences of ownership of any Class A Ordinary Share
                                         from the Initial Share Issuance (the “Lock-up”), except for the Class
                                         A Ordinary Shares released from the Lock-up based on the following schedule:

 

		(a)	one-third
                                         of the Initial Share Issuance shall be released from the Lock-up on the last day of the
                                         six-month period commencing from the Initial Share Issue Date (the “First Release
                                         Date”); and

  

    14

     

    

 

EXECUTION
VERSION

 

		(b)	in
                                         the event that, as of the last day of the three-month period commencing from the First
                                         Release Date (the “First Determination Date”),

 

		(i)	the
                                         Three-month Deemed Realized Value is less than the Share Value, another one-third of
                                         the Initial Share Issuance shall be released from the Lock-up on the business day immediately
                                         following the First Determination Date (the “Second Release Date”);
                                         or

 

		(ii)	the
                                         Three-month Deemed Realized Value equals to or exceeds the Share Value, the remainder
                                         shares from the Initial Share Issuance that are still subject to the Lock-up shall be
                                         surrendered and cancelled for nil consideration. SDL shall return the Share Certificates
                                         representing such remainder shares from the Initial Share Issuance for cancellation and
                                         deliver any other documents or material necessary or appropriate to effect such surrender
                                         and cancellation.

 

		(c)	in
                                         the event that, as of the last day of the three-month period commencing from the Second
                                         Release Date (the “Second Determination Date”),

 

		(i)	the
                                         sum of the Three-month Deemed Realized Value ending on the First Determination Date and
                                         the Three-month Deemed Realized Value ending on the Second Determination Date is less
                                         than the Share Value, the remainder one-third of the Initial Share Issuance shall be
                                         released from the Lock-up on the business day immediately following the Second Determination
                                         Date (the “Third Release Date”); or

  

    15

     

    

 

EXECUTION
VERSION

 

		(ii)	the
                                         sum of the Three-month Deemed Realized Value ending on the First Determination Date and
                                         the Three-month Deemed Realized Value ending on the Second Determination Date equals
                                         to or exceeds the Share Value, the remainder shares from the Initial Share Issuance that
                                         are still subject to the Lock-up shall be surrendered and cancelled for nil consideration.
                                         SDL shall return the Share Certificate representing such remainder shares from the Initial
                                         Share Issuance for cancellation and deliver any other documents or material necessary
                                         or appropriate to effect such surrender and cancellation.

 

		3.5.3	Subject
                                         to the terms and conditions set forth in section 3.5.2 above, in the event that, as of
                                         (x) the last day of the nine-month period commencing from the First Release Date, or
                                         (y) the last day of any nine-month period commencing from the most recent Additional
                                         Share Issue Date (as defined below), the Incremental Deemed Realized Value is less than
                                         the Share Value, the Company shall issue additional Class A Ordinary Shares (the “Additional
                                         Share Issuance”) to SDL within 15 business days (each of such share issuance date,
                                         an “Additional Share Issue Date”) equal to (i) the difference between the
                                         Share Value and the most recent Incremental Deemed Realized Value divided by (ii) the
                                         Incremental Determination Price. The entries on the Register of Members of the Company
                                         and each share certificate for the Additional Share Issuance shall be endorsed with restrictive
                                         legend substantially similar to the one specified under section 3.4.2, for a period of
                                         at least six months from the applicable Additional Share Issue Date, in accordance with
                                         applicable securities laws, regulations and orders.

 

    16

     

    

 

EXECUTION
VERSION

 

		3.5.4	If
                                         (i) the Company’s securities are no longer registered pursuant to Section 12(b)
                                         of the Securities Exchange Act of 1934, as amended, and listed on NASDAQ upon its issuance,
                                         (ii) the ADSs converted from the Initial Share Issuance and/or Additional Share Issuance(s)
                                         are not freely tradable or transferable on the ADS issuance date or any time thereafter,
                                         except for any customary restrictions imposed by Rule 144 of the Securities Act of 1933,
                                         as amended, or (iii) the Company receives a definitive notice from Nasdaq that the Company’s
                                         securities will be suspended from trading commencing from a specific date, upon the request
                                         of SDL, the The9 Entities shall immediately pay an amount equal to the remainder of Share
                                         Value, deducting the most recent Three-month Deemed Realized Value or Incremental Deemed
                                         Realized Value (as applicable), in clear funds and without any set-off, withholding or
                                         other education by a telegraphic transfer to the Offshore Bank Account, unless otherwise
                                         notified by SDL in writing (email shall suffice); provided that SDL shall surrender the
                                         Class A Ordinary Shares that are still subject to Lock-up, if any, for nil consideration
                                         in advance. The Company’s obligations under sections 3.5.2 and 3.5.3 shall terminate
                                         upon the determination of the earliest Three-month Deemed Realized Value or the Incremental
                                         Deemed Realized Value, as applicable, equalling to or exceeding the Share Value, as confirmed
                                         by both Parties in writing.

  

		3.6	Cooperation

 

		3.6.1	At
                                         its own expense, the The9 Entities shall, and shall cause each of the Group Companies
                                         and its officers, employees, agents, affiliates and attorneys to and use their best efforts
                                         to procure any relevant third party to, fully and promptly cooperate with SDL, its officers,
                                         employees, agents, affiliates and attorneys in connection with performance of the obligations
                                         contained in this Section 3.

 

		3.6.2	Until
                                         the obligations of The9 Entities under this Section 3 have been fully discharged, should
                                         there be any share splits, share dividends, combinations, recapitalizations and similar
                                         events or any transaction which results in each ADS no longer representing three (3)
                                         Class A Ordinary Shares, parties shall make adjustments as necessary to ensure that the
                                         rights of SDL under this section 3 shall not be negatively impacted. Specifically, each
                                         of the Incremental Deemed Realized Value, Incremental Determination Price, Three-month
                                         Deemed Realized Value and Three-month Determination Price as calculated after any such
                                         transaction shall be no more than had the transaction not taken place.

  

    17

     

    

 

EXECUTION
VERSION

 

		3.7	Late
                                         Payment Interest

 

		3.7.1	Without
                                         prejudice to the rights, powers, privileges, remedies, and claims of SDL herein provided,
                                         at law, in equity or otherwise, the The9 Entities shall be liable to pay SDL interest
                                         at a rate of seven percent (7%) p.a. on any payment (or any part thereof) which is not
                                         paid by the The9 Entities punctually under this Deed or otherwise from its due date until
                                         the same is actually received by SDL in clear funds.

 

		3.8	Delivery
                                         of ADSs

 

		3.8.1	The
                                         Company agrees to deliver unrestricted and freely tradeable ADSs in respect of all Ordinary
                                         Shares issuable pursuant to this Section 3 to SDL (or any entity designated by SDL) on
                                         or prior to December 15, 2020. The waiver and release contemplated by Section 4 below
                                         will not be effective until such time as the requirements of this Section 3.8 are satisfied.

 

		4.	WAIVER
                                         AND RELEASE; TERMINATION OF THE PROCEEDINGS

 

		4.1	Waiver
                                         and Release

  

		4.1.1	Upon
                                         the fulfilment of the obligations set out in Clause 3.2.1 above, and subject to this
                                         Clause 4:

  

		(a)	SDL
                                         and APAL shall irrevocably and forever waive, release, acquit, discharge each of HKCo
                                         1, HKCo 2, the Operating Company, Hui Ling, and Shencai and their direct or indirect
                                         subsidiaries, officers, directors, employees, and agents from all and every manner of
                                         claims, causes of action, liabilities, duties, obligations, demands, contracts, agreements,
                                         torts, covenants, controversies, debts, dues, deposits, or sums of money, whether sounding
                                         in contract or in tort or deriving from the application of any statute, rule or regulation,
                                         and whether arising at law, in equity or by contract, known or unknown, actual or potential,
                                         existing or future, fixed or contingent, arising prior to, through and/or after the date
                                         of the execution of this Deed arising out of, in relation to and/or in connection with
                                         the Outstanding Principal and Interest Liabilities, the Relevant Agreements, the Equity
                                         Transfer Agreement, and all amendments to the aforementioned agreements and all and any
                                         related arbitration proceedings and court proceedings in any jurisdiction, including
                                         but not limited to the Proceedings; and

  

		(b)	HKCo
                                         1, HKCo 2, the Operating Company, Hui Ling, and Shencai shall irrevocably and forever
                                         waive, release, acquit, discharge each of SDL and APAL and their officers, directors,
                                         employees, and agents from all and every manner of claims, causes of action, liabilities,
                                         duties, obligations, demands, contracts, agreements, torts, covenants, controversies,
                                         debts, dues, deposits, or sums of money, whether sounding in contract or in tort or deriving
                                         from the application of any statute, rule or regulation, and whether arising at law,
                                         in equity or by contract, known or unknown, actual or potential, existing or future,
                                         fixed or contingent, arising prior to, through and/or after the date of the execution
                                         of this Deed arising out of, in relation to and/or in connection with the Outstanding
                                         Principal and Interest Liabilities, the Relevant Agreements, the Equity Transfer Agreement,
                                         and all amendments to the aforementioned agreements and all and any related arbitration
                                         proceedings and court proceedings in any jurisdiction, including but not limited to the
                                         Proceedings.

  

    18

     

    

  

 

EXECUTION VERSION

 

		4.1.2	Upon the fulfilment of the obligations set out in Clause 3 above, and subject to this Clause 4:

 

		(a)	SDL and APAL shall irrevocably and forever waive, release, acquit, discharge The9 Limited, its
direct or indirect subsidiaries and its officers, directors, employees, and agents from all and every manner of claims, causes
of action, liabilities, duties, obligations, demands, contracts, agreements, torts, covenants, controversies, debts, dues, deposits,
or sums of money, whether sounding in contract or in tort or deriving from the application of any statute, rule or regulation,
and whether arising at law, in equity or by contract, known or unknown, actual or potential, existing or future, fixed or contingent,
arising prior to, through and/or after the date of the execution of this Deed arising out of, in relation to and/or in connection
with the Outstanding Principal and Interest Liabilities, the Relevant Agreements, the Equity Transfer Agreement, and all amendments
to the aforementioned agreements and all and any related arbitration proceedings and court proceedings in any jurisdiction, including
but not limited to the Proceedings; and

 

		(b)	The9 Limited shall irrevocably and forever waive, release, acquit, discharge each of SDL and
                                                                    APAL and their officers, directors, employees, and agents from all and every manner of claims, causes of action, liabilities,
                                                                    duties, obligations, demands, contracts, agreements, torts, covenants, controversies, debts, dues, deposits, or sums of
                                                                    money, whether sounding in contract
or in tort or deriving from the application of any statute, rule or regulation, and whether arising at law, in equity or by contract,
known or unknown, actual or potential, existing or future, fixed or contingent, arising prior to, through and/or after the date
of the execution of this Deed arising out of, in relation to and/or in connection with the Outstanding Principal and Interest Liabilities,
the Relevant Agreements, the Equity Transfer Agreement, and all amendments to the aforementioned agreements and all and any related
arbitration proceedings and court proceedings in any jurisdiction, including but not limited to the Proceedings.

 

    19

     

    

 

EXECUTION VERSION

 

		4.1.3	Nothing in this Clause 4.1 shall waive claims arising out of, in relation to and/or in connection
with this Deed.

 

		4.1.4	Notwithstanding any provisions under this Deed, the entering into and/or any contents of this Deed
shall not constitute any admission of liability, guilt, default or breach by any of the Parties under the Relevant Agreements and/or
in relation to the Proceedings.

 

		4.1.5	The The9 Entities acknowledge and agree that the terms of the foregoing release are understood
and voluntarily accepted by them without duress or coercion, economic or otherwise, and that the The9 Entities have obtained sufficient
information to intelligently exercise their own judgment regarding the terms of the foregoing release before executing this Deed.

 

		4.2	Termination of the Proceedings

 

		4.2.1	The The9 Entities and SDL shall take all steps necessary to ensure the prompt constitution of the
Tribunal in the Arbitration. As soon as practicable but in no event later than three (3) Business Days after the later of (a) fulfilment
of the obligations set out in Clause 3.2.1 above, and (b) constitution of the Tribunal, SDL and the The9 Entities shall jointly write
to the Tribunal in the Arbitration to jointly request pursuant to Article 37.2(a) of the HKIAC Administered Arbitration Rules and
section 66(1) of the Arbitration Ordinance (Cap. 609) that the Tribunal terminate the Arbitration and record the settlement in
the form of an arbitral award on agreed terms and content substantially in the form set forth in Annex A to this Deed (the
“Consent Award”); and

 

    20

     

    

 

EXECUTION VERSION

 

		4.2.2	As soon as practicable but in no event later than three (3) Business Days after fulfilment of the
obligations set out in Clause 3.2.1 above, SDL and the The9 Entities in the Hong Kong High Court Proceedings shall file a consent
summons with the Hong Kong Court for the discontinuance of the Hong Kong High Court Proceedings, the full and complete discharge
of the Injunction Order and any ancillary orders including orders for disclosure against all 6 defendants therein and vacating
the hearing scheduled for 3 August 2020 at 10:00 a.m. with 3 hours reserved, with no order as to costs. The The9 Entities shall
procure Hui Ling, the 5th Defendant in the Hong Kong High Court Proceedings, and Shencai, the 6th Defendant in the Hong Kong High
Court Proceedings, to execute the consent summons.

 

		4.2.3	As soon as practicable but in no event later than three (3) Business Days after fulfilment of the
obligations set out in Clause 4.2.2 above, SDL and the The9 Entities in the Singapore High Court Proceedings shall file a consent
summons with the Singapore Court to set aside the registration of judgment with no order as to costs against all 6 defendants therein
and discontinue all proceedings in the Singapore Court including but not limited to case number HC/OS 453/2020. The The9 Entities
shall procure Hui Ling, the 5th Defendant in the Singapore High Court Proceedings, and Shencai, the 6th Defendant in the Singapore
High Court Proceedings, to execute the consent summons.

 

    21

     

    

 

EXECUTION VERSION

 

		5.	EFFECTIVENESS OF THE DEED, CO-OPERATION AND NOTIFICATION TO THIRD PARTIES

 

		5.1	The Deed shall take effect immediately upon payment of the Onshore Settlement Amount by the The9
Entities pursuant to Section 3.2.1 herein.

 

		5.2	On the Business Day following the date on which SDL has duly received the Onshore Settlement Amount
paid by the The9 Entities pursuant to Section 3.2.1 herein,- the Parties’ legal representatives (DLA Piper for the The9 Entities
and Morrison & Foerster for SDL) shall physically exchange the Parties’ respective original executed Deed.

 

		5.3	Following entry into effect of this Deed, The9 Entities shall provide SDL with a bank transfer
application for the purpose of transferring the final instalment paid or to be paid by Kapler under the Equity Transfer Agreement
in the total sum of USD 4,788,732 into the account at the Bank of East Asia (China) Limited, Shanghai Branch (Account Number:                               )
in the name of HKCo 1 to a bank account to be designated by the The9 Entities at its sole discretion. Within three (3) Business
Days of receipt of the relevant bank transfer application, Mr. Lau Tak Kei, Arthur shall sign the bank transfer application and
SDL’s legal representative, Morrison & Foerster, shall hand over the signed bank transfer application to DLA Piper, the
legal representative of the The9 Entities.

 

    22

     

    

 

EXECUTION VERSION

 

		5.4	Upon The9 Entities’ written request, SDL must within three (3) Business Days use its best
endeavourstake all reasonable steps to ensure the release of all deposits and interest in the account at the Bank of East Asia
(China) Limited, Shanghai Branch (Account Number:                               ) to the The9 Entities, including but not limited to (i) procuring
that the seal and/or signature of Mr. Lau Tak Kei, Arthur be removed from the account at the Bank of East Asia (China) Limited,
Shanghai Branch (Account Number:                               ); (ii) provided that the The9 Entities have provided the relevant original
remittance slip, instructing Morrison & Foerster (SDL’s legal representatives) to pass to DLA Piper (The9 Entities’
legal representatives) the original remittance slip duly signed and sealed by Mr. Lau Tak Kei, Arthur consenting to the transfer
of all deposits and interest from the account at the Bank of East Asia (China) Limited, Shanghai Branch (Account Number:                               )
to a bank account to be designated by The9 Entities in writing (by email will suffice); and (iii) in the event the Bank of East
Asia (China) Limited, Shanghai Branch requires the closure of the bank account (Account Number:                               ), procuring Mr.
Lau Tak Kei, Arthur to take all reasonable steps to facilitate the closure of the bank account as well as the remittance of all
deposits and interest therein to a bank account to be designated by the The9 Entities in writing (by email will suffice).

 

		5.5	Each Party must use its best endeavours to help any other Party carry into effect the terms of
this Deed. The The9 Entities and SDL must use their best endeavours to facilitate the termination of the Proceedings, and the issuance
of a Consent Award under the Arbitration, including but not limited to as specified in Section 4.2 and Section 5.3 above.

 

    23

     

    

 

EXECUTION VERSION

 

		5.6	As a condition precedent to the The9 Entities’ issuance of shares to SDL pursuant to Section
3.4 of this Deed, within seven (7) Business Days from the date on which the Parties file the consent summons pursuant to Section
4.2.2 of this Deed, SDL shall send letters substantially in the form and contents set out in the template annexed as Annex B
to this Deed (the “Letters”) to all Third Parties. Evidence of courier and copies of the Letters sent to
these Third Parties shall be provided to the The9 Entities within three (3) Business Days from the date of sending.

 

		5.7	For the avoidance of doubt, it is understood and agreed by the Parties that payment of the Onshore
Settlement Amount by the The9 Entities to SDL pursuant to Clause 3.2.1 of this Deed shall be made using the funds subject to the
Injunction Order. SDL and APAL hereby expressly consent to the application of any fund by Hui Ling from its bank account at Bank
of Shanghai, Puxi Branch (Account Number:                               ) and/or Shencai from its bank account at China Merchant Bank, Huaihai Branch
(Account Number:                               ), which are currently subject to the Injunction Order, for the purpose of paying the Onshore Settlement
Amount through the Operating Company pursuant to Section 3.2.1 of this Deed. SDL shall:

 

		5.7.1	waive and release The9 Entities from any and all liability they may have in relation to such application
of fund;

 

		5.7.2	be refrained from taking any action to cite The9 Entities and/or any of their officers, directors,
employees and agents for contempt of court for that reason;

 

		5.7.3	agree and provide all necessary cooperation and/or consent to enable the The9 Entities to lawfully
use any funds now subject to the Injunction Order to comply with Section 3 of this Deed; and

 

    24

     

    

 

EXECUTION VERSION

 

		5.7.4	For the avoidance of doubt, the contents of this Section 5.6 constitutes a written agreement between
the Defendants and the Plaintiff of the Hong Kong High Court Proceedings and the Singapore High Court Proceedings to vary the terms
of the Injunction Order pursuant to paragraph 14 of the Injunction Order:- “The Defendants may agree with the Plaintiff’s
solicitors that the above spending limits or limits on dealing with or disposal of assets should be increased or that this Order
should be varied in any other respect, but any such agreement must be in writing”.

 

		6.	REPRESENTATIONS AND CONVENANTS BY THE9 ENTITIES

 

		6.1	Each of the The9 Entities has been duly incorporated and is validly existing under the laws of
its place of incorporation.

 

		6.2	Each of the The9 Entities has the right, power and authority, and has taken all actions necessary,
to execute, deliver and exercise its rights, and perform its obligations, under this Deed.

 

		6.3	This Deed has been duly executed and delivered by each of the The9 Entities and, assuming the due
authorization, execution and delivery by the other Parties, constitutes a legal, valid and binding obligation of such, enforceable
against each of the The9 Entities in accordance with its terms.

 

		6.4	The execution and delivery of this Deed will not contravene or result in a contravention of:

 

		6.4.1	the memorandum and articles of association or other constituent or constitutive documents of each
of the The9 Entities;

 

		6.4.2	any agreement or instrument to which each of the The9 Entities is a party or by which each of the
The9 Entities is bound;

 

		6.4.3	any order, judgment or decree of any court or governmental agency to which the Investor is a party
or by which each of the The9 Entities is bound or submits; or

 

    25

     

    

 

EXECUTION VERSION

 

		6.4.4	any applicable law to which each of the The9 Entities is subject to.

 

		6.5	With the exception of the Proceedings, none of the The9 Entities is involved in or
the subject of, either on its own account or vicariously, any legal proceeding, arbitration or tribunal proceeding, prosecution
or any governmental or regulatory investigation is pending or threatened, by or against such The9 Entity, and there are no circumstances
which may lead to any such legal proceeding, arbitration or tribunal proceeding, prosecution or governmental or regulatory investigation,
which may materially affect the payments as contemplated under this Deed.

 

		6.6	There are no insolvency proceedings of any character whatsoever, including, without limitation,
any insolvency resolution application, bankruptcy, receivership, reorganization, compromise, or an arrangement with creditors,
voluntary or involuntary, affecting any Group Company or any The9 Entity which have been filed are pending or have been threatened
in writing, and none of the Group Companies or The9 Entities has made any assignment for the benefit of creditors. With respect
to any Group Company and/or its assets, no liquidator, provisional liquidator, receiver or administrator has been appointed and,
no proceedings have been filed under which such a liquidator, provisional liquidator, receiver or an administrative receiver might
be appointed. None of the Group Companies is insolvent or unable pay its financial debts as they fall due (other than the Default);
or (y) will become insolvent or unable to pay its financial debts as they fall due.

 

		7.	CONFIDENTIALITY

 

		7.1	The Parties undertake from the date hereof that unless otherwise provided for under this Deed,
they will keep the nature and circumstances of the Proceedings, the fact of settlement and also the existence and terms of this
Deed confidential and will not at any time hereafter divulge or communicate the same to any person, except:

 

		7.1.1	as may be agreed upon in writing by the Parties;

 

		7.1.2	to their respective legal advisers;

 

    26

     

    

 

EXECUTION VERSION

 

		7.1.3	as required by any law or regulatory requirement but limited to the extent of that legal obligation
or requirement;

 

		7.1.4	to the extent that such information is already in the public domain (other than as a result of
any Parties’ breach of this Deed);

 

		7.1.5	to the Parties’ litigation funder, insurers or reinsurers and their respective employees
and professional advisers;

 

		7.1.6	to any brokers and potential insurers and their respective employees and professional advisers
solely for the purpose of providing full disclosure in connection with obtaining future professional indemnity insurance;

 

		7.1.7	to the extent reasonably required to give effect to the terms of this Deed; and

 

		7.1.8	for purposes of facilitating the issuance or enforcement of the arbitral award jointly requested
by the Parties.

 

		7.2	Notwithstanding Section 7.1 above, if any Party receives enquiries (whether from the media or otherwise)
relating to the Proceedings or the settlement thereof, the Party’s response shall be that the matter has been settled to
the Parties’ mutual satisfaction and the Proceedings have been dismissed with no order as to costs.

 

    27

     

    

 

EXECUTION VERSION

 

		8.	NOTICES

 

		8.1	Any notices, requests, claims, demands, waivers and other communications required or permitted
under this Deed shall be in writing and shall be delivered: (a) by reliable overnight delivery service; (b) by hand; or (c) by
facsimile, and/or electronic mail, provided that such notice shall also be delivered by reliable overnight delivery service:

 

if to any of The9 Entities:

 

George Lai

17/F, No.130 Wu Song Road,

Hongkou District,

Shanghai, China

if to SDL and APAL:

 

Arthur Lau

Suite 62, 6/F New Henry House

10 Ice House Street

Central, Hong Kong

 

or in any such case to such
other address, facsimile number, electronic mail address, or telephone as any Party may, from time to time, designate in a written
notice given in a like manner. Notices shall be deemed given when left at the address of the party being served.by overnight delivery
service or, hand.

 

		9.	GOVERNING LAW

 

		9.1	The formation, existence, construction, performance, validity and all aspects
whatsoever of this Deed or of any term of this Deed will be governed by the laws of the State of New York without regard to any
choice of laws or conflict of laws provisions that would require the application of the laws of any other jurisdiction.

 

    28

     

    

 

EXECUTION VERSION

 

		10.	ARBITRATION

 

		10.1	Any dispute, controversy, difference, proceedings or claim arising out of
or in relating to this Deed, including the existence, validity, interpretation, performance, breach or termination thereof or any
dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally resolved by arbitration
administered by the HKIAC under the HKIAC Administered Arbitration rules in force when the notice of arbitration is submitted.
The seat of arbitration shall be Hong Kong. The number of arbitrators shall be three. The arbitration proceedings shall be conducted
in English. The arbitration award issued in accordance with this clause shall be final and binding on the parties.

 

		11.	MISCELLANEOUS

 

		11.1	This Deed shall inure to the benefit of, and be binding upon the Parties
and their heirs and permitted successors and assigns.

 

		11.2	This Deed shall not be assignable by any Party without the prior written
consent of each of the other Parties, except as provided hereunder.

 

		11.3	Nothing in this Deed shall constitute or be deemed to constitute a partnership between the Parties
or constitute one the agent of another and none of the Parties shall do or suffer anything to be done whereby it shall or may be
represented that it is the partner or agent of a Party hereto (save as aforesaid) unless such Party is appointed partner or agent
of that other Party with the consent in writing of that Party.

 

		11.4	The liabilities of The9 Entities under this Deed shall be joint and several.

 

		11.5	This Deed does not create, and shall not be construed as creating, any rights
enforceable by any Person not a party to this Deed.

 

		11.6	Each of the Parties shall bear the expenses incurred by that Party in connection with negotiating,
preparing and executing this Deed and any other document required by this Deed, including without limitation all fees and disbursements
of counsel and accountants retained by such Party.

 

    29

     

    

 

EXECUTION VERSION

 

		11.7	This Deed contains the entire understanding of the Parties with respect
to the subject matter herein contained and may be amended, modified, supplemented or altered only by a writing duly executed by
all of the Parties (or their duly authorized representatives), and any other prior agreements or understandings, whether oral or
written, are entirely superseded hereby.

 

		11.8	No modification, waiver or extension of any of the provisions of this Deed
shall be effective unless such modification, waiver or extension shall be in writing and signed by each of the Parties.

 

		11.9	A waiver of any term, provision or condition of, or consent granted under, this Deed will be effective
only if given in writing and signed by the waiving or consenting Party and then only in the instance and for the purpose for which
it is given. No failure or delay by a Party in exercising any right, power, remedy or privilege under this Deed shall operate as
a waiver thereof, nor shall any single or partial exercise of the same preclude any further exercise thereof or the exercise of
any other right, power or remedy.

 

		11.10	To the maximum extent permissible by law, the rights and remedies herein provided are exclusive
of any rights or remedies provided by law.

 

		11.11	The captions of the various clauses and sections of this Deed have been
inserted for the purpose of convenience of reference only, and such captions are not a part of this Deed and shall not be deemed
in any manner to modify, explain, enlarge or restrict any of the provisions of this Deed.

 

		11.12	This Deed may be executed in any number of counterparts, each of which when executed will be an
original but together will constitute one and the same agreement. Transmission of an executed counterpart of this Deed by e-mail
(in PDF, JPEG or other agreed format) shall take effect as delivery of an executed counterpart of this Deed. If such method of
delivery is adopted by a Party, without prejudice to the validity of the agreement thus made, that Party shall provide the other
Parties with the original of such counterparty within seven (7) Business Days of the execution of this Deed.

 

    30

     

    

 

EXECUTION VERSION

 

		11.13	If any provision or provisions of this Deed, or any portion of any provision
hereof, shall be deemed invalid or unenforceable pursuant to a final determination of any court of competent jurisdiction or as
a result of future legislative action, such determination or action shall be construed so as not to affect the validity or enforceability
hereof and shall not affect the validity or effect of any other portion hereof, unless, as a result of such determination or action,
the consideration to be received or enjoyed by any Party hereto would be materially impaired or reduced.

 

		11.14	The Parties agree that they will execute and deliver, or cause to be executed
and delivered, to each other such further instruments, and take such other action as may be necessary to effect the intent of this
Deed.

 

[Signature pages to follow]

 

    31

     

    

 

Appendix I

 

    32

     

    

 

EXECUTION VERSION

 

ANNEX A

 

    33

     

    

 

EXECUTION VERSION

 

ANNEX B

 

    34

     

    

 

IN WITNESS WHEREOF the Parties have executed
this deed on the date first above written.

 

	Executed as a deed 	)	 
	by affixing the common seal of 	)	 
	Splendid Days Limited	)	 
	in the presence of:	)	/s/ Authorized Signatory
	 	)	Name: Authorized Signatory
	 	)	Title: Director
	 	
        )

        )
	 
	/s/ Authorized Signatory	 	 
	Signature of witness	 	Name: 
	Name of witness: Authorized Signatory	 	Title: Director/ Secretary

 

     

     

    

 

EXECUTION VERSION

 

IN WITNESS WHEREOF the Parties have executed this deed on the date first above written.

 

	Executed as a deed 	)	 
	by affixing the common seal of 	)	 
	Ark Pacific Associates Limited	)	 
	in the presence of:	)	/s/ Authorized Signatory
	 	)	Name: Authorized Signatory
	 	)	Title: Director
	 	
        )

        )
	 
	/s/ Authorized Signatory	 	 
	Signature of witness	 	Name: 
	Name of witness: Authorized Signatory	 	
        Title: Director/ Secretary

 

     

     

    

 

EXECUTION VERSION

 

IN WITNESS WHEREOF the Parties have executed this deed on the date first above written.    

 

	Executed as a deed 	)	 
	by affixing the common seal of 	)	 
	The9 Limited	)	 
	in the presence of:	)	/s/ George Lai
	 	)	Name: George Lai
	 	)	Title: Director
	 	
        )

        )
	 
	/s/ Authorized Signatory	 	 
	Signature of witness	 	Name: 
	Name of witness: Authorized Signatory	 	
        Title: Director/ Secretary

 

     

     

    

 

EXECUTION VERSION

 

IN WITNESS WHEREOF the Parties have executed this deed on the date first above written.    

 

	Executed as a deed 	)	 
	by affixing the common seal of 	)	 
	China The9 Interactive Limited	)	 
	in the presence of:	)	/s/ George Lai
	 	)	Name: George Lai
	 	)	Title: Authorized Signatory
	 	
        )

        )
	 
	/s/ Authorized Signatory	 	 
	Signature of witness	 	Name: 
	Name of witness: Authorized Signatory	 	
        Title: Director/ Secretary

 

     

     

    

 

EXECUTION VERSION

 

IN WITNESS WHEREOF the Parties have executed this deed on the date first above written.    

 

	Executed as a deed 	)	 
	by affixing the common seal of 	)	 
	GameNow.net (Hong Kong) Limited	)	 
	in the presence of:	)	/s/ George Lai
	 	)	Name: George Lai
	 	)	Title: Authorized Signatory
	 	
        )

        )
	 
	/s/ Authorized Signatory	 	 
	Signature of witness	 	Name: 
	Name of witness: Authorized Signatory	 	
        Title: Director/ Secretary

 

     

     

    

 

EXECUTION VERSION

 

IN WITNESS WHEREOF the Parties have executed this deed on the date first above written.    

 

	Executed as a deed 	)	 
	by affixing the common seal of 	)	 
	Shanghai The9 	)	 
	Information Technology Co., Ltd.	)	/s/ Hui Yang
	上海第九城市信息技术有限公司	)	Name: Hui Yang
	in the presence of:	)	Title: Legal Representative
	 	
        )

        )
	 
	/s/ Xiaoyan Hu	 	 
	Signature of witness	 	Name: 
	Name of witness: Xiaoyan Hu	 	
        Title: Director/ Secretary

 

     

     

    

 

EXECUTION VERSION

 

IN WITNESS WHEREOF the Parties have executed this deed on the date first above written.    

 

	Executed as a deed 	)	 
	by affixing the common seal of 	)	 
	Hui Ling Computer Technology Consulting (Shanghai) Co., Limited 	
        )

        )
	
         

        /s/ Wei Ji

	慧瓴计算机技术咨询(上海)有限公司	)	Name: Wei Ji
	in the presence of:	)	Title: Legal Representative
	 	)	 
	 	
        )

        )
	 
	/s/ Xiaoyan Hu	 	Name: 
	Signature of witness	 	
        Title: Director/ Secretary

	 	 	 
	Name of witness: Xiaoyan Hu	 	 

 

     

     

    

 

EXECUTION VERSION

 

IN WITNESS WHEREOF the Parties have executed this deed on the date first above written.    

 

	Executed as a deed 	)	 
	by affixing the common seal of 	)	 
	Shanghai Shencaichengjiu Information 	)	 
	Technology Co., Ltd.	)	/s/ Zhimin
    Lin
	上海神财诚久信息技术有限公司	)	Name: Zhimin Lin
	in the presence of:	)	Title: Legal Representative
	 	
        )

        )
	 
	/s/ Xiaoyan Hu	 	 
	Signature of witness	 	Name: 
	Name of witness: Xiaoyan Hu	 	
        Title: Director/ SecretaryJOINT VENTURE AGREEMENT

THIS JOINT VENTURE AGREEMENT (the "Agreement")
made and entered into this 6th day of April, 2020 (the "Execution Date"),

BETWEEN:

CleanSpark Inc. (“CleanSpark”)
of 8475 S. Eastern Ave. Suite 200, Las Vegas, NV 89123, and

Cross Country Media and Sourcing Inc. (“CCMS”)of 2400 Kinkora Rd. Bordentown, NJ 08505

(individually the "Member" and collectively the "Members").

BACKGROUND:

		A.	The Members wish to enter into an association of mutual benefit and agree to jointly invest and
set up a joint venture enterprise.

		B.	This Agreement sets out the terms and conditions governing this association.

IN CONSIDERATION OF and as a condition of
the Members entering into this Agreement and other valuable consideration, the receipt and sufficiency of which consideration is
acknowledged, the Members agree as follows:

Formation

		1.	By this Agreement the Members enter into a joint venture (the "Venture") in accordance
with the laws of the State of Nevada. The rights and obligations of the Members will be as stated in the applicable legislation
of the State of Nevada (the "Act") except as otherwise provided here.

Name

		2.	The business name of the Venture will be CLSK COVID-19 Assistance but operating under the CCMS
banner without additional companies, entities or accounts set up.

Purpose

		3.	The exclusive purpose of the Venture (the "Purpose") will be Procurement and sales
of supplies and materials.

    	 	1	 

     

    

Term

 

		4.	The duration of this Venture (the "Term") will begin on April 3, 2020 and continue
in full force and effect until December 31, 2020 or as otherwise provided in this Agreement.

		5.	The Term may be extended with the unanimous consent of all Members.

Place of Business

		6.	The principal office of the business of the Venture will be located at 2400 Kinkora Rd. Bordentown,
NJ 08505 or such other place as the Members may from time to time designate.

Business Management

		7.	The Members have appointed CCMS to act as manager (the "Manager") for the Venture.

		8.	Except as otherwise provided in this Agreement, the Manager may be appointed, replaced, or removed
upon unanimous consent of the Members.

		9.	The Manager will have a primary duty to the best interest of the Venture and not directly to
any individual Member.

		10.	Within the limits of the Purpose of the Venture and the terms of this Agreement, the Manager
will have full authority to bind the Members in all matters relating to the direction, control and management of the Venture. Conduct
and actions of the Manager will be dictated by policy and procedure established by the Members. Authority to bind the Venture in
contract or in any third party business relation lies exclusively with the Manager.

		11.	The Manager will decide major issues concerning the Venture.

Management Duties

		12.	Except as otherwise specified in this agreement, the duties and obligations of the Manager in
relation to the Venture will include the following:

		a.	managing the day to day business of the Venture;

    	 	2	 

     

    

 

		b.	monitoring, controlling and directing the financial, business and operational affairs of the
Venture;

		c.	proper maintenance of books of account and financial records according to accepted accounting
practices;

		d.	monitoring, analyzing and acting on all issues over which it would have express or implied authority
according to this Agreement; and

		e.	all responsibilities attached to hiring of production and administration staff including any
required labor negotiations, and all responsibilities attached to hiring of third party contractors.

Member Duties

		13.	Each Member will be responsible for its respective duties as follows:

	Member	Duties Description
	CleanSpark Inc 	To provide the necessary capital for FDA certified products to be imported into the United States 
	Cross Country Media and Sourcing 	To manage (re: Manager) the procurement, shipment and sale of the FDA certified masks, including quality control and all daily operations of the venture.

		14.	Duties of Members may be amended, from time to time, by decision of the Members, provided that
the Members' interests are not affected except with the unanimous consent of the Members.

Capital Contributions

		15.	Each of the Members has contributed to the capital of the Venture, in cash or property in agreed
upon value, as follows (the "Capital Contribution"):

	Member	Contribution Description	Agreed Value
	CleanSpark Inc 	$660,000 in capital funding on a best efforts basis with the intent to turn the funds four or more times in as short a term as possible. 	$660,000.00 USD 
	Cross Country Media and Sourcing 	Procurement of products and Management and services 	$10,000 USD 

		16.	All Members will contribute their respective Capital Contributions fully and on time.

    	 	3	 

     

    

 

Withdrawal of Capital

		17.	No Member will have the right to demand or withdraw any portion of their capital contribution
without the express written consent of the remaining Members.

		18.	The Members will not be personally liable for the return of all or part of the Capital Contributions
of a Member, except as otherwise provided in this Agreement.

Additional Capital

		19.	Capital Contributions may be amended from time to time, according to the requirements of the
Venture, by decision of the Members as recommended by the Manager. Where Members' interests are affected, additional capital contributions
(the "Additional Capital Contributions") must have the unanimous consent of the Members.

		20.	Any advance of money to the Venture by any Member in excess of the amounts provided for in this
Agreement or subsequently agreed to as an Additional Capital Contribution will be deemed a debt due from the Venture rather than
an increase in Capital Contribution of the Member. This liability will be repaid with interest at such rates and times to be determined
by a majority of the Members. This liability will not entitle the lending Member to a greater voting power. Such debts may have
preference or priority over any other payments to Members as may be determined by a majority of the Members.

Capital Accounts

		21.	Currently the capital will be maintained through the CCMS capital account. Any additional, approved
contributions to the Venture's capital made by a Member will be credited to that Member's individual Capital Account.

Interest on Capital

		22.	No borrowing charge or loan interest will be due or payable to any Member on any Capital Contribution
or on their Capital Account despite any disproportion that may from time to time arise among the Capital Accounts of the Members.

    	 	4	 

     

    

 

Books of Account

		23.	Accurate and complete books of account of the transactions of the Venture will be kept in accordance
with generally accepted accounting principles (GAAP) and at all reasonable times will be available and open to inspection and examination
by any Member. The books and records of the Venture will reflect all the Venture’s transactions and will be appropriate and
adequate for the business conducted by the Venture.

Banking and Venture Funds

		24.	The funds of the Venture will be placed in such investments and banking accounts as will be designated
by the CCMS. Venture funds will be held in the name of CCMS in its general accounts.

Member Meetings

		25.	Regular Member briefings will be held only as required, updatesmay be furnished on a daily basis,
upon request. Minutes of the special meetings will be maintained on file.

		26.	Any Member can call a special meeting to resolve urgent issues that require a vote and that cannot
wait for the next regularly scheduled meeting. When calling a special meeting, all Members must be provided with reasonable notice.
Where a special meeting has been called, the meeting will be restricted to the specific purpose for which the meeting was called.

		27.	All meetings will be held at a time and in a location that is reasonable, convenient and practical
considering the situation of all Members.

		28.	Any vote required by the Members will be determined such that each Member receives a vote proportional
in weight to that Member's Capital Contributions.

Amendments

		29.	This Agreement may be amended only with the unanimous consent of all Members.

Admitting a new Member

		30.	New Members may be admitted into the Venture only with the unanimous consent of the existing
Members. The new Member agrees to be bound by all the covenants, terms, and conditions of this Agreement, inclusive of all current
and future amendments. Further, a new Member will execute such documents as are needed or required for this admission. Any new
Member will receive a business interest in the Venture as determined by all other Members.

Dissociation of a Member

		31.	Where a Member is in breach of this Agreement and that Member has not remedied the breach on
notice from the Venture and after a reasonable period then the remaining Members will have the right to terminate this Agreement
with regard to that individual defaulting Member (an "Involuntary Withdrawal") and take whatever action necessary to
protect the interests of the Venture.

    	 	5	 

     

    

 

		32.	If the Venture is harmed as the result of an individual Member's action or failure to act, then
that individual Member will be liable for that harm. If more than one Member is at fault then they will be jointly and severally
liable for that harm.

		33.	Each Member will indemnify the remaining Members against all losses, costs and claims that may
arise in the event of the Venture being terminated as a result of breach of the Agreement by that Member.

		34.	If a Member is placed in bankruptcy, or withdraws voluntarily from the Venture, or if there is
an Operation of Law against a Member, the other Members will be entitled to proceed as if the Member had breached this Agreement.

		35.	Distribution of any amount owing to a dissociated Member will be made according to the percentage
of ownership as described in the Valuation of Interest or as otherwise may be agreed in writing.

Dissolution of the Joint Venture

		36.	The Venture will be dissolved and its assets liquidated in the event of any of the following:

		a.	the Term expires and is not extended;

		b.	a unanimous vote by the Members to dissolve the Venture;

		c.	on satisfaction of the Purpose;

		d.	loss or incapacity through any means of substantially all of the Venture's assets; or

		e.	where only one Member remains.

Liquidation

		37.	On dissolution, the Venture will be liquidated promptly and within a reasonable time.

		38.	On the liquidation of the Venture assets, distribution of any amounts to Members will be made
in proportion to their respective capital accounts or as otherwise may be agreed in writing.

    	 	6	 

     

    

 

Valuation of Interest

		39.	In the absence of a written agreement setting a value, the value of the Venture will be determined
based on the fair market value appraisal of all Venture assets (less liabilities) in accordance with generally accepted accounting
principles (GAAP) by an independent accounting firm agreed to by all Members. An appraiser will be appointed within a reasonable
period of the date of withdrawal or dissolution. The results of the appraisal will be binding on all Members. A withdrawing Member's
interest will be based on the proportion of their respective capital account less any outstanding liabilities a Member may have
to the Venture. The intent of this section is to ensure the survival of the Venture despite the withdrawal of any individual Member.

		40.	No allowance will be made for goodwill, trade name, patents or other intangible assets, except
where those assets have been reflected on the Venture books immediately prior to valuation.

Transfer of Member Interest

		41.	A Member may assign their proprietary assets and their rights in distribution interest in the
Venture. Such assignment will only include that Member's economic rights and interests and will not include any other rights of
that Member nor will it include an automatic admission as a Member of the Venture or the right to exercise any management or voting
interests. A Member who assigns any or all of their Venture interest to any third party will relinquish their status as Member
including all management and voting rights. Assignment of Member status, under this clause, including any management and voting
interests, will require the consent of all the remaining Members.

Force Majeure

		42.	A Member will be free of liability to the Venture where the Member is prevented from executing
their obligations under this Agreement in whole or in part due to force majeure where the Member has communicated the circumstance
of that event to any and all other Members and taken any and all appropriate action to mitigate that event. Force majeure will
include, but not be limited to, earthquake, typhoon, flood, fire, and war or any other unforeseen and uncontrollable event.

Duty of Loyalty

		43.	Provided a Member has the consent of the majority of the other Members, the Members to this Agreement
and their respective affiliates may have interests in businesses other than the Venture. Neither the Venture nor any other Member
will have any rights to the assets, income or profits of any such business, venture or transaction. Any and all businesses, ventures
or transactions with any appearance of conflict of interest must be fully disclosed to all other Members. Failure to disclose any
potential conflicts of interest will be deemed an Involuntary Withdrawal by the offending Member and may be treated accordingly
by the remaining Members.

    	 	7	 

     

    

 

Confidentiality

		44.	All matters relating to this Agreement and the Venture will be treated by the Members as confidential
and no Member will disclose or allow to be disclosed any Venture matter or matters, directly or indirectly, to any third party
without the prior written approval of all Members except where the information properly comes into the public domain.

		45.	This section will survive for one year after the expiration or termination of this Agreement
or dissolution of the Venture.

Language

		46.	The Members expressly state that the English language is to be the language of choice for this
Agreement and all other notices and agreements required by the Venture.

Insurance

		47.	Cross Country Media Sourcing will insure all its assets against loss where reasonable and standard
practice in the industry. Such insured losses shall be limited to the initial $660,000 investment.

Indemnification

		48.	Each Member will be indemnified and held harmless by the Venture from any and all harm or damages
of any nature relating to the Member's participation in Venture affairs except where such harm or damages results from gross negligence
or willful misconduct on the part of the Member.

Liability

		49.	No Member will be liable to the Venture or to any other Member for any error in judgment or any
act or failure to act where made in good faith. The Member will be liable for any and all acts or failures to act resulting from
gross negligence or willful misconduct.

Liability Insurance

		50.	The Venture may acquire insurance on behalf of any Member, employee, agent or other person engaged
in the business interest of the Venture against any liability asserted against them or incurred by them while acting in good faith
on behalf of the Venture.

Covenant of Good Faith

		51.	Members will use their best efforts, fairly and in good faith to facilitate the success of the
Venture.

    	 	8	 

     

    

Joint Venture Property

		52.	Where allowed by statute, title to all Venture property, including intellectual property, will
remain in the name of the Venture. Where joint ventures are not recognized by statute as separate legal entities, Venture property,
including intellectual property, will be held in the name of one or more Members. In all cases Venture property will be applied
by the Members exclusively for the benefit and purposes of the Venture and in accordance with this Agreement.

Jurisdiction

		53.	The Members submit to the jurisdiction of the courts of the State of New Jersey for the enforcement
of this Agreement and for any arbitration award or decision arising from this Agreement.

Mediation and Arbitration

		54.	In the event a dispute arises out of, or in connection with, this Agreement, the Members will
attempt to resolve the dispute through friendly consultation.

		55.	If the dispute is not resolved within a reasonable period then any or all outstanding issues
may be submitted to mediation in accordance with any statutory rules of mediation. If mediation is not successful in resolving
the entire dispute or is unavailable, any outstanding issues will be submitted to final and binding arbitration in accordance with
the laws of the State of New Jersey. The arbitrator's award will be final, and judgment may be entered upon it by any court having
jurisdiction within the State of New Jersey.

Warranties

		56.	All Members represent and warrant that they have all authority, licenses and permits to execute
and perform this Agreement and their obligations under this Agreement and that the representative of each Member has been fully
authorized to execute this Agreement.

		57.	Each Member represents and warrants that this Agreement is not in violation of any and all agreements
and constitutional documents of the individual Member.

    	 	9	 

     

    

 

Definitions

 

		58.	CleanSpark will receive $0.20 (the “Profit”)per mask sold through use of their funds,
with the intent to turn the funds four (4) times as stated in section in 15 over the agreed upon term also stated in section 15.
Profits will be distributed to CleanSpark as soon as commercially reasonable after receipt from Customer, or at its sole discretion
CleanSpark my roll Profits into its Capital Account for the sole purpose of procurement and sale of additional units. Or using
best efforts. Once the agreed upon term or results have been satisfied that the term may extended or modified with mutual consent
of all parties. CleanSpark recognizes that CCMS has already been importing masks and will continue to do so with their own funds
and appropriate credit lines.

		59.	For the purpose of this Agreement, the following terms are defined as follows:

		a.	"Capital Contributions" The capital contribution to the Venture actually made
by the Members, including property, cash and any additional capital contributions made.

		b.	"Majority Vote" A Majority Vote is any amount greater than one-half of the authorized
votes.

		c.	"Operation of Law" The Operation of Law means rights or duties that are cast
upon a party by the law, without any act or agreement on the part of the individual including but not limited to an assignment
for the benefit of creditors, a divorce, or a bankruptcy.

Miscellaneous

		60.	This Venture is termed a contractual joint venture and will not constitute a partnership. Members
will provide services to one another on an arms' length basis while remaining independent business entities. There will be no pooling
of profits and losses. Each Member is responsible only for its own actions and no Member is an agent for any other Member. Members
will not be jointly or severally liable for the actions of the other Members.

		61.	Time is of the essence in this Agreement.

		62.	This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered
to be original signatures.

    	 	10	 

     

    

 

		63.	Headings are inserted for the convenience of the Members only and are not to be considered when
interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine gender include
the feminine gender and vice versa. Words in the neuter gender include the masculine gender and the feminine gender and vice versa.

		64.	If any term, covenant, condition or provision of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, it is the Members' intent that such provision be reduced in scope by the court
only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions
of this Agreement will in no way be affected, impaired or invalidated as a result.

		65.	This Agreement contains the entire agreement between the Members. All negotiations and understandings
have been included in this Agreement. Statements or representations which may have been made by any Member in the negotiation stages
of this Agreement may in some way be inconsistent with this final written Agreement. All such statements are declared to be of
no value in this Agreement. Only the written terms of this Agreement will bind the Members.

		66.	This Agreement and the terms and conditions contained in this Agreement apply to and are binding
upon the Member's successors, assigns, executors, administrators, beneficiaries, and representatives.

		67.	Any notices or delivery required here will be deemed completed when hand-delivered, delivered
by agent, or seven (7) days after being placed in the post, postage prepaid, to the Members at the addresses contained in this
Agreement or as the Members may later designate in writing.

		68.	All of the rights, remedies and benefits provided by this Agreement will be cumulative and will
not be exclusive of any other such rights, remedies and benefits allowed by law.

    	 	11	 

     

    

 

IN WITNESS WHEREOF the Members have duly affixed
their signatures under hand and seal on this 6th day of April, 2020.

 

	 	 	 
	 	 	CleanSpark Inc (Member) 
	 	 	 
	 	 	Per:_________________________ (SEAL) 
	 	 	 

 

	 	 	 
	 	 	Cross Country Media and Sourcing (Member) 
	 	 	 
	 	 	Per:_________________________ (SEAL) 
	 	 	 

 

    	 	12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}]]