Document:

Form of Employment Agreement

  
 Exhibit 10.3

  
 Dated the    day
of                2004 
  
 between 
  
 The9 Limited 
 (as the Employer) 
  
 and 
  
 [        ] 
 (as the Employee) 
  

  
 EMPLOYMENT AGREEMENT 
  

  

 THIS AGREEMENT is made on the      day of
                 2004 
  
 BETWEEN: 
  

	(1)	The9 Limited, a company incorporated under the laws of the Cayman Islands and having its registered office at 2nd Floor, Zephyr House, Mary St, PO Box 709, George Town, Grand Cayman, Cayman Islands, British West Indies (the “Company”); and

  

	(2)	[insert full name•], holder of                     
passport no.                      /
                     identity card no.
                     of [insert address •] (the “Employee”). 

  
 NOW IT IS HEREBY AGREED as follows: 
  

	1.	Employment and Position Details 

  

	1.1	The Company hereby employs the Employee as its                      and
the Employee hereby accepts such employment upon and subject to the terms and conditions hereinafter contained. Further details of the position of the Employee hereunder are set out in Part I of Schedule 1 hereto. 

  

	1.2	The Employee shall also be or act as the                      of
                    , or such other managerial or director position or positions with the Company or any of its subsidiaries or affiliated
companies as shall hereafter be designated by the Board of Directors of the Company (the “Board”) without additional or further remuneration or compensation, and unless otherwise determined by the Board, shall have such authority
and powers commensurate with his/her position(s). If any remuneration or compensation is paid to the Employee by any such subsidiary or affiliated company, the amount of such remuneration or compensation shall be a credit against amounts due
hereunder. 

  

	1.3	In addition to his/her duties to the Board as provided herein, the Employee shall report to the Chief Executive Officer of the Company (the “CEO”). The rights and
powers of the Board hereunder may be exercised by the CEO if so authorized by the Board. 

  

	2.	Remuneration Package and Benefits 

  
 The Employee shall be entitled to the remuneration package and the benefits set out in Schedule 1 hereto. Save as expressly provided herein or otherwise
agreed by the Board or a committee thereof, the Employee shall not be entitled to any, or any claim for, reward, bonus, allowance, double pay, reimbursement, share of profit or other remuneration or compensation of whatever description. 

 

	3.	Duties 

  

	3.1	The Employee shall devote substantially all his/her working time, attention and skill to the affairs of the Company and all its subsidiaries and affiliated companies, and in the
discharge of his/her duties hereunder, including without limitation the following: 

  

	 	(a)	undertaking such duties and responsibilities commensurate with the Employee’s position for similarly sized companies in the same or similar industry; 

 

 Page 1 of 9 

 Employment Agreement 
  

	 	(b)	undertaking such duties and exercising such powers in relation to the Company and its business as the Board may from time to time assign to or vest in him/her;

  

	 	(c)	discharging such duties and observing and complying with all such resolutions, regulations and directions as made or given by the Board from time to time; 

 

	 	(d)	undertaking to do such other and additional work as may lawfully be requested of him/her and to perform such services for the Company’s subsidiaries, affiliated companies or
holding company as the Board may from time to time lawfully require; and 

  

	 	(e)	at all times keeping the Board promptly and fully informed of his/her conduct of the business or affairs of the Company and its subsidiaries, affiliated companies and holding
company (where relevant) and providing such explanations as the Board may require. 

  

	3.2	The Employee acknowledges and agrees that the Company may require the Employee to second to or work for the Company’s subsidiaries or affiliated companies from time to time.

  

	4.	Conflicting Employment 

  
 The Employee shall devote all of his/her business time, energy, skill and efforts to the performance of his/her duties hereunder and shall faithfully and
diligently serve the Company. The Employee shall not (without the previous written consent of the Board) during the continuance of this Agreement (either directly or indirectly) be engaged or interested in any capacity in any trade, business,
profession, undertaking or occupation whatsoever other than the business and affairs of the Company from time to time. In this Clause 4, the expression “occupation” shall include any other private or personal work, for profit or
not, which in the opinion of the Board may hinder or otherwise interfere or conflict with the performance by the Employee of his/her duties under this Agreement. 
  

	5.	Term 

  
 This Agreement shall commence from
                     (the “Commencement Date”) and subject to the Company’s right of summary dismissal hereunder,
shall continue to be in force until terminated pursuant to Clause 6 hereof save and except to the extent as expressly provided herein to survive the termination hereof. 
  

 Page 2 of 9 

 Employment Agreement 
  

	6.	Termination 

  

	6.1	This Agreement may, subject to Clause 6.2 below, be terminated by either the Employee or the Company at any time by giving to the other not less than three (3) months’ notice
in writing or payment in lieu, provided however that no notice of termination may be given by the Employee before the earlier of (i) the shares of the Company have been listed on a recognized stock exchange in the United States or Hong Kong and
commenced trading, and (ii) 30th June 2005. 

  

	6.2	Notwithstanding anything herein contained, the Company may terminate this Agreement without notice or payment in lieu: - 

  

	 	(a)	if the Employee, in relation to his/her employment hereunder: 

  

	 	(i)	wilfully disobeys a lawful and reasonable order of the CEO, the Board and/or the Company; 

  

	 	(ii)	misconducts himself/herself, such conduct being inconsistent with the due and faithful discharge of his/her duties hereunder; 

  

	 	(iii)	is guilty of fraud or dishonesty; 

  

	 	(iv)	is habitually neglectful in his/her duties hereunder; 

  

	 	(v)	is grossly negligent or incompetence in the performance of his/her duties hereunder; 

  

	 	(vi)	is convicted of (or pleading nolo contendere to) a felony (other than a summary traffic offence) or a crime involving fraud, misappropriation, or embezzlement;

  

	 	(vii)	is for whatever cause reprimanded by any stock exchange, or ruled by any stock exchange as not suitable to hold office in public company; 

  

	 	(viii)	is in breach of a provision of this Agreement in such respect as the Board may consider material or having done irremediable harm to the Company or its subsidiaries, affiliated
companies or holding company; or 

  

	 	(ix)	fails to comply with the request of the Company under Clause 15; or 

  

	 	(b)	on any other ground on which the Company would be entitled to terminate this Agreement without notice at common law or by statute. 

  

	6.3	The Employee shall return in an orderly manner to the Board upon request or at the end of his/her employment with the Company all corporate credit cards (if any), equipment,
materials, records, documents, computer programmes, object codes and source codes and works of authorship fixed in any tangible medium or expression or copies thereof including (without limitation) correspondences, lists of clients or customers,
notes, memoranda, plans and any other items or property relating to or concerning the business, finances, products, services or affairs of the Company or its subsidiaries, affiliated companies or holding company which may then be in his/her
possession or under his/her power or control and the Employee undertakes not to retain any copies or duplicates of such items. For the avoidance of doubt it is hereby declared that the property in all such items and documents as aforesaid shall at
all times be vested in the Company or such subsidiaries, affiliated companies or holding company, as the case may be. 

  

 Page 3 of 9 

 Employment Agreement 
  

	7.	The Employee’s Covenants and Undertakings 

  

	7.1	The Employee hereby covenants with and undertakes to the Company that for a period of twelve (12) months from the date of the termination of his/her employment with the Company,
he/she shall not do, directly or indirectly, any of the following without first obtaining the written consent of the Company: 

  

	 	(a)	carry on (whether alone or in partnership or joint venture with anyone else) or otherwise be concerned with or interested in (whether as trustee, principal, agent, shareholder, unit
holder or in any other capacity) any business or undertaking similar to or competitive with the business of the Company, its subsidiaries or affiliated companies or holding company at the date of the termination of this Agreement (the
“Business”) in Shanghai, Hong Kong and any other places where the Company, its subsidiaries or affiliated companies or holding company carries on such business and/or sells its products; 

  

	 	(b)	solicit or persuade any person or corporation which is a customer or client of the Company, its subsidiaries or associated companies or holding company, or who is or was a customer
or client of or in respect of the Business, to cease doing business with the Company, its subsidiaries or associated companies or holding company or to reduce the amount of business which such customer or client would normally do in respect of the
Business; 

  

	 	(c)	accept from a customer or client referred to in Clause 7.1(b) above any business of the kind ordinarily forming part of the Business; 

  

	 	(d)	solicit, induce, entice away or encourage any person who at the date of the termination of this Agreement is an employee of the Company, its subsidiaries or affiliated companies or
holding company to terminate his/her employment with the Company, its subsidiaries or affiliated companies or holding company, either for the Employee or for any other person. 

  

	7.2	While the restrictions contained in this Clause 7 are considered by the parties to be reasonable in all the circumstances, it is recognized that restrictions of the nature in
question may fail for technical reasons unforeseen by the parties and accordingly it is hereby agreed and declared that if any of such restrictions shall be adjudged to be void as going beyond what is reasonable in all the circumstances for the
protection of the interests of the Company, its subsidiaries, affiliated companies, holding company and related corporations but would be valid if part of the wordings thereof were deleted or the periods thereof reduced or the range of activities or
area dealt with thereby reduced in scope the said restriction shall apply with such modifications as may be necessary to make it valid and effective. 

  

 Page 4 of 9 

 Employment Agreement 
  

	7.3	Each and every obligation under this Clause 7 shall be treated as a separate obligation and shall be severally enforceable as such and in the event of any obligation being or
becoming unenforceable in whole or in part despite application of Clause 7.2, such part or parts as are unenforceable shall be deleted from this Clause 7 and any such deletion shall not affect the enforceability of all other parts of this Clause 7
which remain not so deleted. 

  

	8.	Review of Remuneration Package 

  
 The remuneration package of the Employee may be reviewed upon each anniversary of the Commencement Date at the Company’s sole and absolute discretion
PROVIDED that the first review will not need to be conducted until after the shares of the Company have been listed on a recognized stock exchange in the United States or Hong Kong and commenced trading. 
  

	9.	Confidentiality and Invention Assignment 

  
 As a condition for the employment hereunder, the Employee shall execute a deed of confidentiality and invention assignment in favour of the Company in
such form and with such contents as to the satisfaction of the Company, such deed to be executed simultaneously with the signing of this Agreement. 
  

	10.	Personal Data 

  
 The Employee hereby expressly consents to the Company’s disclosure and/or transfer of any personal data collected from him/her (including but without
limitation, his/her name, residential address, nationality, position, remuneration and the content of this Agreement as may be amended and/or supplemented from time to time), whether now or in the future, for purposes which are directly and/or
indirectly related to and/or expedient for the public offering of the securities of the Company or for regulatory compliance. 
  

	11.	Schedules 

  
 The Schedules hereto form part of this Agreement and shall be binding on both the Company and the Employee. 
  

	12.	Entire Agreement 

  
 This Agreement and the documents referred to herein, constitute the entire agreement and understanding of the parties relating to the subject matter of
this Agreement and none of the parties has entered into this Agreement in reliance upon any representation, warranty or undertaking of any other party which is not set out or referred to in this Agreement. 
  

	13.	No Waiver 

  
 No failure on the part of any party to this Agreement to exercise, and no delay on its part in exercising, any right or remedy under this Agreement will
operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy. The rights provided in this Agreement are cumulative and not
exclusive of any rights or remedies provided by law. 
  

 Page 5 of 9 

 Employment Agreement 
  

	14.	Amendment 

  
 The parties hereto agree that subject to Clause 15 no variations or modifications shall be made to this Agreement unless agreed to by the parties hereto
in writing. 
  

	15.	Governing Law 

  
 This Agreement shall be governed by and construed in accordance with the laws of the Hong Kong Special Administrative Region, PRC. 
  

	16.	Miscellaneous 

  
 The Company may, if it considers appropriate, require the Employee to enter into another employment agreement with another company within the group to
which the Company belongs to replace or supplement this Agreement provided that (1) the remuneration and benefits under such new employment agreement are the same as the remuneration package and the benefits set out in Schedule 1 hereto, and (2) the
role and the place of work are the same as those stipulated in this Agreement. 
  
 AS WITNESS hereof this Agreement was signed the day and year first above written. 
  

			
	 SIGNED BY
	 	 )    
 )

	 for and on behalf of
	 	 )

	 The9 Limited
 in the presence of:
	 	 )
 )

		
	 SIGNED BY [please fill in full name]
	 	 )
 )

	 in the presence of:
	 	 )

	 	 	 )

  

 Page 6 of 9 

 Employment Agreement 
  
 Schedule 1 
  
 Part I 
  
 Position Details and Remuneration Package 
  

			
	Position :	  	 
		
	Reporting To :	  	Chief Executive Officer of the Company
		
	Commencement Date :	  	 
		
	Location :	  	The Employee will perform his/her duties as set out herein at the office of the Company’s subsidiary in
                    . Notwithstanding the aforesaid, the Employee will be expected to make visits and short stays outside his/her usual place
of work from time to time as is necessary for the proper performance and discharge of his/her duties herein.
		
	Working Hours :	  	The Employee shall follow the working hours of the Company’s subsidiary to which he/she is posted or such other working hours as the Company may require. Unless otherwise approved by the
Company, there will not be any additional payment for overtime work.
		
	Remuneration and allowances :	  	                    
(                    ) per month shall be payable by the Company to the Employee in arrears on the last day of each month. Such salary
may be paid in                      unless otherwise mutually agreed between the Employee and the Company.
		
	Some of the Duties:	  	 Without prejudice to the generality of the duties set out in this Agreement, the following are some of the duties of the Employee:
 a. [    ];
 b. [    ];
 c. [    ]

  
 Part II

  
 Benefits 
  

			
	Share Option Scheme:	  	The Employee may, if so determined by the Company, participate in a share option scheme to subscribe for shares in the Company in such manner as the Company may in its sole and absolute
discretion determine and subject to any terms and conditions as set out in the rules of such employee share option scheme of the Company as

  

 Page 7 of 9 

 Employment Agreement 
  

			
	 	  	amended or varied from time to time. A separate letter of grant in relation to any options shall be issued in the event of a grant.
		
	Annual Leave:	  	After completion of each full year of service of employment with the Company, the Employee will be entitled to
                     (            ) working days of paid annual leave.
Should the Employee not have been employed by the Company for a full year, then his/her entitlement to the aforementioned paid annual leave will be pro-rated and accrue on a daily basis. Such leave entitlement shall only be taken at such time or
times as may be convenient to the Company having regard to its business as determined at the sole discretion of the CEO and in no event shall the Employee apply or take any of his/her annual leave before the shares of the Company or its holding
company have been listed on a recognized stock exchange in the United States or Hong Kong and commenced trading or the expiry of the first six months of his/her employment hereunder, whichever is the earlier. If approved by the CEO in advance, any
unused annual leave of the Employee at the end of the year (meaning an anniversary of the commencement date hereof) may be carried forward to the next following year but not further. Any unused annual leave brought forward will automatically lapse
at the end of the said next following year.
		
	Other Holidays:	  	The Employee shall be entitled to paid holidays in accordance with the policy and practice of the Company’s subsidiary in
                    .
		
	Medical Insurance:	  	The Employee may, if approved by the Company at its sole and absolute discretion, participate in the Company’s medical insurance plan and any other plans or schemes as taken out by the
Company from time to time, subject always to his/her satisfying such terms and/or conditions as may be required by such plans or schemes.
		
	Business Expenses:	  	The Company will reimburse the Employee in accordance with the prevailing policy and guidelines of the Company as to the standard and level commensurate with the Employee’s position with
the Company for all reasonable expenses wholly and exclusively incurred by the Employee in or about the performance of his/her duties stated herein.
		
	Other Benefits, if any:	  	 

  

 Page 8 of 9Form of Call Option

 Exhibit 10.6 
  
 Translation 
  
 Call Option Agreement 
  
 between 
  
 [                    ] 
  
 and 
  
 [                    ] 
  
 and 
  
 The9 Computer Technology Consulting (Shanghai) Co., Ltd. 
  
 Regarding 
  
 Shanghai Jiucheng Information Technology Co., Ltd. 
  
                      2004 

 Translation 
  

Call Option Agreement 
  
 This [                    ] Option Agreement (hereinafter this
“Agreement”) is entered into in Shanghai of the People’s Republic of China (hereinafter “PRC”) as of              2004 by and between the
following Parties: 
  

	(1)	[                    ], a PRC citizen, with his identity card number of
[                    ] and his domicile address at
[                    ], Shanghai, PRC; 

  

	(2)	[                    ], a PRC citizen, with his identity card number of
[                    ] and his domicile address of
[                    ], Shanghai, PRC; 

  
 (The above two individuals hereinafter individually or collectively the “Existing Shareholder(s)”); and 
  

	(3)	The9 Computer Technology Consulting (Shanghai) Co., Ltd., a company with limited liability established upon registration in Shanghai of the PRC with its registered address at
B-44 No. 498 Guoshoujing Road, Zhangjiang Hi-tech Park, Shanghai, PRC (hereinafter “The9 Computer”). 

  
 Any single Party hereinafter a “Party” and all Parties collectively the “Parties”. 
  
 Whereas: 
  

	(1)	The Existing Shareholders are the enrolled shareholders of Shanghai Jiucheng Information Technology Co., Ltd. (a company with limited liability established and validly existing
under the PRC Law with its registered address at No. 8885 Hutai Road, Shanghai, PRC, hereinafter “Shanghai IT”), legally holding all the equity of Shanghai IT, and their contributions to and their equity shares in the registered
capital of Shanghai IT as of the date of this Agreement are as set out in Appendix I hereto. 

  

	(2)	The Existing Shareholders intend to transfer to The9 Computer, and The9 Computer is willing to accept, all their respective equity share in Shanghai IT, subject to PRC Law.

  

	(3)	In order to realize the above equity transfer, the Existing Shareholders agree to jointly grant The9 Computer with an irrevocable option for equity transfer (hereinafter the
“Transfer Option”), under which and to the extent as permitted by the PRC Law, the Existing Shareholders shall on demand of The9 Computer transfer the Option Equity (as defined below) to The9 Computer and/or any other entity or
individual designated by it in accordance with the provisions contained herein. 

  

 2 

 Translation 
  

The Parties hereby have reached the following agreement upon mutual consultations: 
  
 Article 1 - Definition 
  

	1.1	Except as otherwise construed in the context, the following terms in this Agreement shall be interpreted to have the following meanings: 

  
 “PRC Law” shall mean the then valid laws, administrative regulations,
administrative rules, local regulations, judicial interpretations and other binding regulatory documents of the People’s Republic of China. 
  
 “Option Equity” shall mean, in respect of each of the Existing Shareholders, all its respective equity share in the Shanghai IT Registered Capital (as
defined below); and in respect of both Existing Shareholders, the equity accounting for 100% of the Shanghai IT Registered Capital. 
  
 “Shanghai IT Registered Capital” shall mean the registered capital of Shanghai IT on the date of this Agreement, i.e., RMB3,000,000, and shall include
any expanded registered capital as the result of any capital increase within the term of this Agreement. 
  
 “Transferred Equity” shall mean the equity of Shanghai IT which The9 Computer has the right to require the Existing Shareholders to transfer to it or its designated entity or individual when
The9 Computer exercises its Transfer Option (hereinafter the “Exercise of Option”) in accordance with Article 3.2 herein, the amount of which may be all or part of the Option Equity and the details of which shall be determined by
The9 Computer at its own discretion in accordance with the then valid PRC Law and from its commercial consideration. 
  
 “Transfer Price” shall mean all the considerations which The9 Computer or its designated entity or individual is required to pay to the Existing
Shareholders in order to obtain the Transferred Equity upon each Exercise of Option. The total Transfer Price which The9 Computer or its designated entity or individual shall pay to each of the Existing Shareholders upon each Exercise of Option by
The9 Computer shall be RMB1. If there are any mandatory regulations on the then Transfer Price under the PRC Law, The9 Computer or its designated entity or individual shall have the right to pay the Transfer Price at the lowest price to the extent
as permitted by the PRC Law in accordance with the PRC Law. 
  
 “Business
Permits” shall mean any approvals, permits, filings, registrations etc. which Shanghai IT is required to have for legally and validly operating its internet information services and all such other businesses, including but not limited to
the Business License of the Corporate Legal Person, the Tax Registration Certificate, the Permit for Operations of Value-added Telecommunication Businesses in respect of the business operations in internet information services, the filing of
internet electronic 
  

 3 

 Translation 
  

announcement services, the Network Cultural Business Permit for operating internet cultural products containing network games, the approval document number from
internet publication institutions required for operating network games, the filing of the units producing electronic publications required for producing electronic publications, the permit for operations of value-added telecommunication business in
respect of the business operations in message services and such other relevant licenses and permits as required then by PRC Laws; 
  
 “Shanghai IT Assets” shall mean all the tangible and intangible assets which Shanghai IT owns or has the right to use during the term of this Agreement,
including but not limited to any immoveable and moveable assets, and such intellectual property rights as trademarks, copyrights, patents, proprietary know-how, domain name, software use right; 

	

  
 “Material
Agreement” shall mean an agreement to which Shanghai IT is a party and which has a material impact on the businesses or assets of Shanghai IT, including but not limited to the Exclusive Technical Service Agreement and the Master Agreement
between Shanghai IT and The9 Computer and other agreements regarding the profit distribution, technical services and information release under network games; 
  
 “Loan Agreement” shall mean the loan agreement entered into between the Existing Shareholders and The9 Computer. 
  

	1.2	The references to any PRC Law herein shall be deemed (1) to include the references to the amendments, changes, supplements and reenactments of such law, irrespective of whether they
take effect before or after the formation of this Agreement; and (2) to include the references to other decisions, notices or regulations enacted in accordance therewith or effective as a result thereof. 

  

	1.3	Except as otherwise stated in the context herein, all references to an Article, clause, item or paragraph shall refer to the relevant part of this Agreement.

  
 Article 2 – Grant of Transfer Option

  
 The Existing Shareholders hereby separately and jointly agree to grant
The9 Computer hereby irrevocably and without any additional conditions with a Transfer Option, under which The9 Computer shall have the right to require the Existing Shareholders to transfer the Option Equity to The9 Computer or its designated
entity or individual in such method as set out herein and as permitted by the PRC Law. The9 Computer also agrees to accept such Transfer Option. 
  
 Article 3 – Method for Exercise of Option 
  

	3.1	To the extent as permitted by the PRC Law, The9 Computer shall have the absolute discretionary right to determine the specific time, method and times of its Exercise of Option.

  

 4 

 Translation 
  

	3.2	If the then PRC Law permits The9 Computer and/or other entity or individual designated by it to hold all the equity of Shanghai IT, then The9 Computer shall have the right to elect
to exercise all of its Transfer Option at once, where The9 Computer and/or other entity or individual designated by it shall accept all the Option Equity from the Existing Shareholders at once; if the then PRC Law permits The9 Computer and/or other
entity or individual designated by it to hold only part of the equity in Shanghai IT, The9 Computer shall have the right to determine the amount of the Transferred Equity within the extent not exceeding the upper limit of shareholding ratio set out
by the then PRC Law (hereinafter the “Shareholding Limit”), where The9 Computer and/or other entity or individual designated by it shall accept such Transferred Equity from the Existing Shareholders. In the latter case, The9
Computer shall have the right to exercise its Transfer Option at multiple times in line with the gradual deregulation of the PRC Law on the permitted Shareholding Limit, with a view to ultimately acquiring all the Option Equity.

  

	3.3	At each Exercise of Option by The9 Computer, each of the Existing Shareholders shall transfer the proportionate part of its equity in Shanghai IT to The9 Computer and/or other
entity or individual designated by it in accordance with his shareholding ratio in Shanghai IT and the amount of the Transferred Equity determined by The9 Computer in such Exercise of Option. The9 Computer and other entity or individual designated
by it shall pay the Transfer Price to each of the Existing Shareholders for the Transferred Equity accepted in each Exercise of Option. 

  

	3.4	In each Exercise of Option, The9 Computer may accept the Transferred Equity by itself or designate any third party to accept all or part of the Transferred Equity.

  

	3.5	On deciding each Exercise of Option, The9 Computer shall issue to both Existing Shareholders a notice for exercising the Transfer Option (hereinafter the “Exercise
Notice”, the form which is set out as Appendix II hereto). The Existing Shareholders shall, upon receipt of the Exercise Notice, forthwith transfer all the Transferred Equity in a lump sum to The9 Computer and/or other entity or individual
designated by The9 Computer in such method as described in Article 3.3 herein. 

  

	3.6	The Existing Shareholders hereby jointly and severally undertake and guarantee that once The9 Computer issues the Exercise Notice: 

  

	 	(1)	it shall immediately hold a shareholders’ meeting and adopt a resolution through the shareholders’ meeting, and take all other necessary actions to agree to the transfer
of all the Transfer Option to The9 Computer and/or other entity or individual designated by it at the Transfer Price; 

  

 5 

 Translation 
  

	 	(2)	it shall immediately enter into an equity transfer agreement with The9 Computer and/or other entity or individual designated by it for transfer of all the Transferred Equity to The9
Computer and/or other entity or individual designated by it at the Transfer Price; 

  

	 	(3)	it shall provide The9 Computer with necessary support (including providing and executing all the relevant legal documents, processing all the procedures for government approvals and
registrations and bearing all the relevant obligations) in accordance with the requirements of The9 Computer and of the laws and regulations, in order that The9 Computer and/or other entity or individual designated by it may take all the Transferred
Equity free from any legal defect. 

  

	3.7	At the meantime of this Agreement, both Existing Shareholders shall respectively enter into a power of attorney (hereinafter the “Power of Attorney”, the form of
which is set out as Appendix III hereto), entrusting any person designated by The9 Computer to, on its behalf in accordance with this Agreement, enter into any and all of the legal documents necessary for The9 Computer and/or other entity or
individual designated by it to take all the Transferred Equity free from any legal defect. Such Power of Attorney shall be delivered for custody by The9 Computer and The9 Computer may, at any time if necessary, require both Existing Shareholders to
enter into multiple copies of the Power of Attorney respectively and deliver the same to the relevant government department. 

  

	3.8	Where the Transfer Price in each Exercise of Option is RMB1, the transferee of the Transferred Equity shall at the meantime bear the obligation of repayment which the Existing
Shareholders transferring the equity have under the Loan Agreement in relevant proportion of the Transferred Equity so received; where the Transfer Price is higher than RMB1, the Transfer Price to be paid by the transferee shall first be used to
repay the borrowings of the relevant Existing Shareholders under the Loan Agreement, and upon completion of such repayment, the borrowing amount borne by the Existing Shareholders under the Loan Agreement in excess of the amount of contributions to
the Shanghai IT Registered Capital upon such Exercise of Option by it shall be borne by the transferee of the Transferred Equity. 

  
 Article 4 – Representations and Warranties 
  

	4.1	Each of the Existing Shareholders hereby jointly and severally represents an warrants as follows: 

  

	 	4.1.1	it is a PRC citizen with full capacity, with full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and may act independently as a
subject of actions. 

  

 6 

 Translation 
  

	 	4.1.2	its has full power to execute and deliver this Agreement and all the other documents to be entered into by it in relation to the transaction referred to herein, and it has the full
power to complete the transaction referred to herein. This Agreement shall be executed and delivered by it legally and properly. This Agreement constitutes the legal and binding obligations on it and is enforceable on it in accordance with its terms
and conditions. 

  

	 	4.1.3	it is the enrolled legal owner of the Option Equity as of the effective date of this Agreement, and except the rights created by this Agreement, there is no lien, pledge, claim and
other encumbrances and third party restrictions on the Option Equity. In accordance with this Agreement, The9 Computer and/or other entity or individual designated by it may, upon the Exercise of Option, obtain the proper title to the Transferred
Equity free from any lien, pledge, claim and other encumbrances and third party restrictions. 

  

	 	4.1.4	Shanghai IT shall obtain complete Business Permits as necessary for its operations upon this Agreement taking effect, and Shanghai IT shall have sufficient rights and qualifications
to operate within PRC the businesses of internet information services, electronic announcement services, message services, operations of network games and other value-added telecommunication business relating to its current business structure.
Shanghai IT has conducted its business legally since its establishment and has not incurred any cases which violate or may violate the regulations and requirements set forth by the departments of commerce and industry, tax, telecommunication,
culture, new release, quality technology supervision, labor protection, social security and other governmental departments or any disputes in respect of the breach of contract. 

  

	4.2	The9 Computer hereby represents and warrants as follows: 

  

	 	4.2.1	The9 Computer is a company with limited liability properly registered and legally existing under the RPC Law, with an independent corporate legal person status. The9 Computer has
full and independent legal status and legal capacity to execute, deliver and perform this Agreement and may act independently as a subject of actions. 

  

	 	4.2.2	The9 Computer has the full internal power and authority within its company to execute and deliver this Agreement and all the other documents to be entered into by it in relation to
the transaction referred to herein, and it has the full power and authority to complete the transaction referred to herein. 

  

 7 

 Translation 
  

Article 5 – Undertakings by Existing Shareholders 
  

The Existing Shareholders hereby jointly and severally undertake as follows: 
  

	5.1	it must take all necessary measures during the term of this Agreement to ensure that Shanghai IT is able to obtain all the Business Permits promptly and all the Business Permits to
remain in effect at any time. 

  

	5.2	Without the prior written consent by The9 Computer during the term of this Agreement, 

  

	 	5.2.1	no Existing Shareholders shall transfer or otherwise dispose of any Option Equity or create any encumbrance or other third party rights on any Option Equity;

  

	 	5.2.2	it shall not increase or decrease the Shanghai IT Registered Capital; 

  

	 	5.2.3	it shall not dispose of or cause the management of Shanghai IT to dispose of any of the Shanghai IT Assets (except as occurs during the arm’s length operations);

  

	 	5.2.4	it shall not terminate or cause the management of Shanghai IT to terminate any Material Agreements entered into by Shanghai IT, or enter into any other Material Agreements in
conflict with the existing Material Agreements; 

  

	 	5.2.5	it shall not appoint or cancel or replace any executive directors or members of the board (if any), supervisors or any other management personnel of Shanghai IT to be appointed or
dismissed by the Existing Shareholders; 

  

	 	5.2.6	it shall not announce the distribution of or in practice release any distributable profit, dividend or share profit or capital bonus; 

  

	 	5.2.7	it shall ensure that Shanghai IT shall validly exist and prevent it from being terminated, liquidated or dissolved; 

  

	 	5.2.8	it shall not amend the Articles of Association of Shanghai IT; and 

  

	 	5.2.9	it shall ensure that Shanghai IT shall not lend or borrow any money, or provide guarantee or engage in security activities in any other forms, or bear any substantial obligations
other than on the arm’s length basis. 

  

	5.3	It must make all its efforts during the term of this Agreement to develop the business of Shanghai IT, and ensure that the operations of Shanghai IT are legal

  

 8 

 Translation 
  

and compliant with the regulations and that it shall not engage in any actions or omissions which might harm the Shanghai IT Assets or its credit
standing or affect the validity of the Business Permits of Shanghai IT. 
  
 Article 6 - Confidentiality 
  

	6.1	Notwithstanding the termination of this Agreement, the Existing Shareholders shall be obliged to keep in confidence (i) the execution, performance and the contents of this
Agreement; (ii) the commercial secret, proprietary information and customer information in relation to The9 Computer known to or received by it as the result of execution and performance of this Agreement; and (iii) the commercial secrets,
proprietary information and customer information in relation to Shanghai IT known to or received by it as the shareholder of Shanghai IT (hereinafter collectively the “Confidential Information”). The Existing Shareholders may use
such Confidential Information only for the purpose of performing its obligations under this Agreement. No Existing Shareholders shall disclose the above Confidential Information to any third parties without the written consent from The9 Computer, or
they shall bear the default liability and indemnify the losses. 

  

	6.2	Upon termination of this Agreement, both Existing Shareholders shall, upon demand by The9 Computer, return, destroy or otherwise dispose of all the documents, materials or software
containing the Confidential Information and suspend using such Confidential Information. 

  

	6.3	Notwithstanding any other provisions herein, the validity of this Article shall not be affected by the suspension or termination of this Agreement. 

  
 Article 7 – Term of Agreement 
  

	7.1	This Agreement shall take effect as of the date of formal execution by the Parties, and shall terminate when all the Option Equity is legally transferred under the name of The9
Computer and/or other entity or individual designated by it in accordance with the provisions of this Agreement. 

  
 Article 8 - Notice 
  

	8.1	Any notice, request, demand and other correspondences made as required by or in accordance with this Agreement shall be made in writing and delivered to the relevant Party.

  

	8.2	The abovementioned notice or other correspondences shall be deemed to have been delivered when it is transmitted if transmitted by facsimile or telex; it shall be deemed to have
been delivered when it is delivered if delivered in person; it shall be deemed to have been delivered five (5) days after posting the same if posted by mail. 

  

 9 

 Translation 
  

	8.3	Any notice, request, demand and other correspondences made to The9 Computer shall be delivered to the company address first here above listed with a copy sent or facsimiled to the
following address: 

  

			
	 Address:
	 	

	 Facsimile number: (852) 2577 3509

  
 Article 9 –
Default Liability 
  

	9.1	The Parties agree and confirm that, if any of the Existing Shareholders (hereinafter the “Defaulting Party”) breaches substantially any of the provisions herein or
omits substantially to perform any of the obligations hereunder, or fails substantially to perform any of the obligations under this Agreement, such a breach or omission shall constitute a default under this Agreement (hereinafter a
“Default”), then The9 Computer shall have the right to require the Defaulting Party to rectify such Default or take remedial measures within a reasonable period. If the Defaulting Party fails to rectify such Default or take remedial
measures within such reasonable period or within ten (10) days of The9 Computer notifying the Defaulting Party in writing and requiring it to rectify the Default, then The9 Computer shall have the right at its own discretion to select any of the
following remedial measures, either (1) to terminate this Agreement and require the Defaulting Party to indemnify it for all the damage, or (2) to require mandatory performance of the obligations of the Defaulting Party hereunder and require the
Defaulting Party to indemnify it for all the damage. 

  

	9.2	The Parties agree and confirm that in no circumstances shall the Existing Shareholders require to terminate this Agreement for any reason. 

  

	9.3	The rights and remedies set out herein shall be cumulative, and shall not preclude any other rights or remedies provided by law. 

  

	9.4	Notwithstanding any other provisions herein, the validity of this Article shall stand disregarding the suspension or termination of this Agreement. 

  
 Article 10 - Miscellaneous 
  

	10.1	This Agreement shall be prepared in the Chinese language in [three (3)] original copies, with each involved Party holding one (1) copy hereof. 

  

	10.2	The formation, validity, execution, amendment, interpretation and termination of this Agreement shall be subject to the PRC Laws. 

	

  

 10 

 Translation 
  

	10.3	Any disputes arising hereunder and in connection herewith shall be settled through consultations among the Parties, and if the Parties cannot reach an agreement regarding such
disputes within thirty (30) days of their occurrence, such disputes shall be submitted to China International Economic and Trade Arbitration Commission Shanghai Branch for arbitration in Shanghai in accordance with the arbitration rules of such
Commission, and the arbitration award shall be final and binding on all Parties. 

  

	10.4	Any rights, powers and remedies empowered to any Party by any provisions herein shall not preclude any other rights, powers and remedies enjoyed by such Party in accordance with
laws and other provisions under this Agreement, and the exercise of its rights, powers and remedies by a Party shall not preclude its exercise of its other rights, powers and remedies by such Party. 

  

	10.5	Any failure or delay by a Party in exercising any of its rights, powers and remedies hereunder or in accordance with laws (hereinafter the “Party’s
Rights”) shall not lead to a waiver of such rights, and the waiver of any single or partial exercise of the Party’s Rights shall not preclude such Party from exercising such rights in any other way and exercising the remaining part of
the Party’s Rights. 

  

	10.6	The titles of the Articles contained herein shall be for reference only, and in no circumstances shall such titles be used in or affect the interpretation of the provisions hereof.

  

	10.7	Each provision contained herein shall be severable and independent from each of other provisions, and if at any time any one or more articles herein become invalid, illegal or
unenforceable, the validity, legality or enforceability of the remaining provisions herein shall not be affected as a result thereof. 

  

	10.8	Any amendments or supplements to this Agreement shall be made in writing and shall take effect only when properly signed by the Parties to this Agreement. 

 

	10.9	No Existing Shareholders shall assign any of its rights and/or obligations hereunder to any third parties without the prior written consent from The9 Computer, and The9 Computer
shall have the right to assign any of its rights and/or obligations hereunder to any of its designated third parties upon notice to the Existing Shareholders. 

  

	10.10	This Agreement shall be binding on the legal successors of the Parties. 

  
 [The following is intended to be blank] 
  

 11 

 Translation 
  

IN WITNESS HEREOF, the Parties have caused this Agreement to be executed as of the date and in the place first here above mentioned. 
  

			
	 	 	 
	 Signature:
	 	  

		
	 	 	 
	 Signature:
	 	  

  
 The9 Computer Technology Consulting
(Shanghai) Co., Ltd. 
 (Company chop) 
  

			
	 Signature by Authorized Representative:
	 	  

	 Name:
	 	 
	 Position:
	 	 

  

 12 

 Translation 
  

Appendix I: 
  
 Basic Information of Shanghai IT 
  

			
	Company Name:	  	Shanghai Jiucheng Information Technology Co., Ltd.
		
	Registered Address:	  	8885 Hutai Road, Shanghai, PRC
		
	Registered Capital:	  	RMB3,000,000
		
	Legal Representative:	  	[            ]
		
	Equity Structure:	  	 

  

						
	 Shareholder’s Name

	  	 Contribution
 (RMB)

	  	 Equity
 Share

	 
	 	  	RMB1,920,000	  	64	%
	 	  	RMB1,080,000	  	36	%
			
	 Total
	  	RMB3,000,000	  	100	%

  

			
	Director:	  	[            ]
		
	General Manager:	  	[            ]
		
	Financial Year:	  	1 January till 31 December of a calendar year

  

 13 

 Translation 
  

Appendix II: 
  
 Format of the Option Exercise Notice 
  
 To: [Name of the Existing Shareholder(s)] 
  
 As
this Company and you signed an Equity Transfer Option Agreement as of                      2004 (hereinafter the “Option
Agreement”), and reached an agreement that you shall transfer the equity you hold in Shanghai Shanghai IT Technology Co., Ltd. (hereinafter “Shanghai IT”) to this Company or any third parties designated by this Company on
demand of this Company to the extent as permitted by the PRC Law and regulations, 
  
 This Company hereby give this Notice to you as follows: 
  
 This Company
hereby requires to exercise the Transfer Option under the Option Agreement and [this Company]/[name of company/individual] designated by this Company shall accept the equity you hold accounting for [        ]%
of the Shanghai IT Registered Capital (hereinafter the “Proposed Accepted Equity”). You are required to forthwith transfer all the Proposed Accepted Equity to [this Company]/[name of designated company/individual] upon receipt of
this Notice in accordance with the agreed terms in the Option Agreement. 
  
 Best
regards, 
  

			
	The9 Computer Technology Consulting (Shanghai) Co., Ltd.
	(Company chop)
		
	Authorized Representative:	 	  

	Date:	 	  

  

 14 

 Translation 
  

Appendix III: 
  
 Format of the Power of Attorney 
  
 I,
                                        ,
hereby irrevocably entrust                      [with his/her identity card number of
                    ] to sign the Equity Transfer Agreement between
                                        
and myself regarding the Equity Transfer of Shanghai Jiucheng Information Technology Co., Ltd., and other related legal documents on my behalf as my authorized trustee. 
  

			
	 Signature:
	 	  

	 Date:
	 	  

  

 15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}]]