Document:

Form of Call Option Agreement (Translation)

 Exhibit 10.6 
  
 DRAFT 
  
 Translation 
  
 Call Option Agreement 
  
 between 
  
 Zhu Jun

  
 and 
  
 Qin Jie 
  
 and 
  
 The9 Computer Technology Consulting (Shanghai) Co., Ltd. 
  
 Regarding 
  
 Shanghai Jiucheng Information Technology Co., Ltd. 
  
                      2004 

 Translation 
  

Equity Transfer Option Agreement 
  
 This Equity Transfer 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)	Zhu Jun, a PRC citizen, with his identity card number of 310103661007241 and his domicile address at Lane 930 Luoxiu Road, Shanghai, PRC; 

  

	(2)	Qin Jie, a PRC citizen, with his identity card number of 310112720806003 and his domicile address of 1954 Huashan Road, 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. 
  

			
	Zhu Jun	 	 
	 Signature:
	 	  

		
	Qin Jie	 	 
	 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

	 
	 Zhu Jun
	  	RMB1,920,000	  	64	%
	 Qin Jie
	  	RMB1,080,000	  	36	%
			
	 Total
	  	RMB3,000,000	  	100	%

  

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

  

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 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:
	 	  

  

 15Form of Share Pledge Agreement (Translation)

 Exhibit 10.7 
  
 DRAFT 
  
 Translation 
  
 Share Pledge Agreement 
  
 between 
  
 He Xudong

  
 and 
  
 The9 Computer Technology Consulting (Shanghai) Co., Ltd. 
  
 Regarding 
  
 Shanghai Jiucheng Advertisement Co., Ltd. 
  
                      2004 

 Translation 
  
 CONTENTS 
  

			
	 Article 1 – Definition
	  	2
		
	 Article 2 – Equity Pledge
	  	3
		
	 Article 3 – Release of Pledge
	  	4
		
	 Article 4 – Disposal of the Pledged Property
	  	4
		
	 Article 5 – Fees and Costs
	  	5
		
	 Article 6 – Continuity and No Waive
	  	6
		
	 Article 7 – Representations and Warranties
	  	6
		
	 Article 8 – Undertakings by Pledgor
	  	8
		
	 Article 9 – Change of Circumstances
	  	9
		
	 Article 10 – Effectiveness and Term of This Agreement
	  	10
		
	 Article 11 – Notice
	  	10
		
	 Article 12 – Miscellaneous
	  	10
		
	 Appendix I:    Basic Information of Jiucheng Advertising
	  	14
		
	 Appendix II:    Format of the Power of Attorney
	  	15

 Translation 
  
 Equity Pledge Agreement 
  
 This Equity Pledge 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)	He Xudong, a PRC citizen, with his identity card number of 310112720604151 and his domicile address at Room 402, No. 30, Lane 502 Bijiang Road, Shanghai, PRC (hereinafter
“Pledgor”); and 

  

	(2)	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 “Pledgee”). 

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

	(1)	Pledgor is the enrolled shareholder of Shanghai Jiucheng Advertisement 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 “Jiucheng Advertising”), legally holding 10% of the equity of Jiucheng Advertising (hereinafter “Jiucheng Advertising Equity”), and the corporate
basic information of Jiucheng Advertising as of the date of this Agreement is as set out in Appendix I hereto. 

  

	(2)	Pursuant to the Loan Agreement dated [ ], 2004 between Pledgee and Pledgor (hereinafter the “Loan Agreement”), Pledgee has already provided Pledgor with a loan
totaling in aggregate the amount sixty thousand Renminbi (RMB60,000), which shall be repaid, at the sole discretion of Pledgee, by Pledgor promptly at the written repayment request by Pledgee to Pledgor. 

  

	(3)	Pursuant to the Equity Transfer Option Agreement dated [ ], 2004 between Pledgee and Pledgor (hereinafter the “Equity Transfer Option Agreement”), Pledgor shall, to
the extent permitted by the PRC Law, transfer at the request of Pledgee all or part of its equity shares in Jiucheng Advertising to Pledgee and/or any other entities or persons designated by Pledgee. 

  

 1 

 Translation 
  

	(4)	Pursuant to the Shareholders’ Voting Right Entrustment Agreement dated [ ], 2004 between Pledgee and Pledgor (hereinafter the “Voting Right Entrustment
Agreement”), Pledgor has already irrevocably entrusted Pledgee with full power to exercise on its behalf all of its shareholders’ voting rights in Jiucheng Advertising. 

  

	(5)	As the guarantee by Pledgor for its performance of the Contract Obligations (as defined below) and repayment of the Guaranteed Liabilities (as defined below), Pledgor agrees to
pledge all of its Jiucheng Advertising Equity to Pledgee, and grants herewith to Pledgee the right of first priority in the pledging. 

  
 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: 

  
 “Contract Obligations” shall mean all contractual obligations of Pledgor
under the Loan Agreement, Equity Transfer Option Agreement and Voting Right Entrustment Agreement; all contractual obligations of Pledgor under this Agreement. 
  

“Guaranteed Liabilities” shall mean all liabilities of Pledgor under the Loan Agreement; all direct, indirect and derivative losses and loss of
foreseeable profits suffered by Pledgee due to any Breaching Event (as defined below) of Pledgor, the amount of which shall be determined by Pledgee in its absolute sole discretion, to which Pledgor shall be subject; and all fees incurred by Pledgee
for its enforcement of the Contractual Obligations of Pledgor. 
  
 “Transaction Agreements” shall mean the Loan Agreement, Equity Transfer Option Agreement and Voting Right Entrustment Agreement. 
  
 “Breaching Event” shall mean any breach by Pledgor of its Contractual Obligations under the Loan Agreement, Equity Transfer Option Agreement, Voting
Right Entrustment Agreement and/or this Agreement. 
  

 2 

 Translation 
  
 “Pledged Property” shall mean all of Pledgor’s Jiucheng Advertising Equity legally owned by Pledgor as of the
effectiveness hereof, which Pledgor shall pledge to Pledgee according to provisions hereof as the guarantee by it for the performance of its Contractual Obligations, and the increased contribution amounts and interests as according to 2.6 and 2.7
hereof. 
  
 “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. 
  

	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 – Equity Pledge 

 

	2.1	Pledgor hereby agrees to pledge the Pledged Property, which it legally owns and has the right to dispose of, to Pledgee according to the provisions hereof as the repayment guarantee
for the Guaranteed Liabilities. 

  

	2.2	Pledgor hereby undertakes that it will be responsible for, on the date hereof, recording the arrangement of the equity pledge hereunder (hereinafter the “Equity
Pledge”) on the shareholder register of Jiucheng Advertising. 

  

	2.3	During the valid term of this Agreement, except for the willful material negligence of Pledgee or such negligence is directly related as cause/result to the consequence, Pledgee
shall not be liable in any way to, nor shall Pledgor have any right to claim in any way or propose any demands on Pledgee, in respect of the reduction in value of the Pledged Property. 

  

	2.4	Subject to compliance with the provision of 2.3 above, in case of any possibility of obvious reduction in value of the Pledged Property which is sufficient to

  

 3 

 Translation 
  
 jeopardize Pledgee’s rights, Pledgee may demand Pledgor to provide corresponding guarantee as supplements. Where
Pledgor fails to do so, Pledgee may at any time auction or sell off the Pledged Property on behalf of Pledgor, and discuss with Pledgor to use the proceeds from such auction or sale-off as pre-repayment of the Guaranteed Liabilities, or may submit
such proceeds to the local notary institution where Pledgee is domiciled (any fees incurred in relation thereto shall be borne by Pledgor). 
  

	2.5	In case of any Breaching Event, Pledgee shall have the right to dispose of the Pledged Property in the way set out in Article 4 hereof. 

  

	2.6	Only upon prior consent by Pledgee shall Pledgor be able to increase its capital contribution to Jiucheng Advertising. Pledgor’s increased capital amount in Jiucheng
Advertising due to its increased capital contribution to Jiucheng Advertising shall also be part of the Pledged Property. 

  

	2.7	Only upon prior consent by Pledgee shall Pledgor be able to receive dividends from the Pledged Property. The dividends received by Pledgor from the Pledged Property shall be
deposited into Pledgee’s bank account designated by Pledgee, to be under the supervision of Pledgee and used as the Pledged Property to repay in priority the Guaranteed Liabilities. 

  
 Article 3 – Release of Pledge 
  

	3.1	Upon full and complete performance by Pledgor of all Contractual Obligations, Pledgee shall, at the request of Pledgor, release the pledge hereunder, and shall cooperate with
Pledgor to handle the formalities to cancel the record of the Equity Pledge in the shareholder register of Jiucheng Advertising, with the reasonable fees to be incurred in connection with the release of the pledge to be borne by Pledgor.

  
 Article 4 – Disposal of the Pledged
Property 
  

	4.1	Pledgor and Pledgee agree hereby that, in case of any Breaching Event, Pledgee shall have the right to exercise, upon giving written notice to Pledgor, all of its remedies and
powers at breaching enjoyable by it under the PRC Law, Transaction Agreements and the terms hereof, including but not limited to 

  

 4 

 Translation 
  
 repayment in priority with proceeds from auctions or sale-offs of the Pledged Property. Pledgee shall not be liable for any
loss as the result of its reasonable exercise of such rights and powers. 
  

	4.2	Pledgee shall have the right to designate in writing its legal consultant or other agents to exercise on its behalf any and all rights and powers set out above, and Pledgor shall
not oppose thereto. 

  

	4.3	The reasonable costs incurred by Pledgee in connection with its exercise of any and all rights and powers set out above shall be borne by Pledgor, and Pledgee shall have the right
to deduct such costs in fact from the proceeds it acquires from the exercise of the rights and powers. 

  

	4.4	The proceeds Pledgee acquires from the exercise of its rights and powers shall be used in the priority order as follows: 

  

	 	•	First, to pay any cost incurred in connection with the disposal of the Pledged Property and the exercise by Pledgee of its rights and powers (including remuneration paid to its
legal consultant and agents); 

  

	 	•	Second, to pay any taxes payable for the disposal of the Pledged Property; and 

  

	 	•	Third, to repay Pledgee for the Guaranteed Liabilities. 

  
 In case of any balance after payment of the above amounts, Pledgee shall return the same to Pledgor or other persons entitled thereto according to the
relevant laws and rules, or submit the same to the local notary institution where Pledgee is domiciled (any fees incurred in relation thereto shall be borne by Pledgor). 
  

	4.5	Pledgee shall have the option to exercise, simultaneously or in certain sequence, any of the remedies at breaching it is entitled to; Pledgee is not obliged to exercise other
remedies at breaching before its exercise of the right to the auctions or sale-offs of the Pledged Property hereunder. 

  
 Article 5 – Fees and Costs 
  

	5.1	All actual costs in connection with the establishment of the Equity Pledge hereunder, including but not limited to stamp duties, any other taxes, all legal fees, etc shall be borne
by Pledgor and Pledgee respectively. 

  

 5 

 Translation 
  
 Article 6 – Continuity and No Waive 
  

	6.1	The Equity Pledge hereunder is a continuous guarantee, with its validity to continue until the full performance of the Contractual Obligations or the full repayment of the
Guaranteed Liabilities. Neither exemption or grace period granted by Pledgee to Pledgor in respect of its breach, nor delay by Pledgee in exercising any of its rights under the Transaction Agreements and this Agreement shall affect the rights of
Pledgee under this Agreement, relevant PRC Law and the Transaction Agreements, the rights of Pledgee to demand at any time thereafter the strict performance of the Transaction Agreements and this Agreement by Pledgor or the rights Pledgee may be
entitled to due to subsequent breach by Pledgor of the Transaction Agreements and/or this Agreement. 

  
 Article 7 – Representations and Warranties 
  
 Pledgor hereby represents and warrants to Pledgee as follows: 
  

	7.1	Pledgor is a PRC citizen with full capacity, with legal right and capacity to execute this Agreement and to bear legal obligations hereunder. 

  

	7.2	All reports, documents and information provided by Pledgor to Pledgee prior to the effectiveness of this Agreement concerning Pledgor and all issues required by this Agreement are
true and valid in all material aspects as of the execution hereof. 

  

	7.3	All reports, documents and information provided by Pledgor to Pledgee after the effectiveness of this Agreement concerning Pledgor and all issues required by this Agreement are true
and valid in all material aspects at the time of their provisions. 

  

	7.4	At the time of the effectiveness of this Agreement, Pledgor is the sole legal owner of the Pledged Property, with no existing dispute whatever concerning the ownership of the
Pledged Property. Pledgor has the right to dispose of the Pledged Property or any part thereof. 

	

  

 6 

 Translation 
  

	7.5	Except for the encumbrance set on the Pledged Property hereunder and the rights set under the Transaction Agreements, there is no other encumbrance or third party interest set on
the Pledged Property. 

  

	7.6	The Pledged Property is capable of being pledged or transferred according to the laws, and Pledgor has the full right and power to pledge the Pledged Property to Pledgee according
to this Agreement. 

  

	7.7	This Agreement constitutes the legal, valid and binding obligations on Pledgor when it is duly executed by Pledgor. 

  

	7.8	Any consent, permission, waive or authorization by any third person, or any approval, permission or exemption by any government authority, or any registration or filing formalities
(if required by laws) with any government authority to be handled or obtained in respect of the execution and performance hereof and the Equity Pledge hereunder have already been handled or obtained, and will be fully effective during the valid term
of this Agreement. 

  

	7.9	The execution and performance by Pledgor of this Agreement are not in violation of or conflict with any laws applicable to it, or any agreement to which it is a party or which has
binding effect on its assets, any court judgment, any arbitration award, or any administration authority decision. 

  

	7.10	The pledge hereunder constitutes the encumbrance of first order in priority on the Pledged Property. 

  

	7.11	All taxes and fees payable in connection with acquisition of the Pledged Property have already been paid in full amount by Pledgor. 

  

	7.12	There is no pending or, to the knowledge of Pledgor, threatened litigation, legal process or demand by any court or any arbitral tribunal against Pledgor, or its property, or the
Pledged Property, nor is there any pending or, to the knowledge of Pledgor, threatened litigation, legal process or demand by any government authority or any administration authority against Pledgor, or its property, or the Pledged Property, which
is of material or detrimental effect on the economic status of Pledgor or its capability to perform the obligations hereunder and the Guaranteed Liabilities. 

  

 7 

 Translation 
  
 Pledgor hereby warrants to Pledgee that the above representations and warranties will remain true and correct at any time and under any
circumstance before the Contractual Obligations are fully performed or the Guaranteed Liabilities are fully repaid, and will be fully complied with. 
  
 Article 8 – Undertakings by Pledgor 
  
 Pledgor hereby undertakes to Pledgee as follows: 
  

	8.1	In case that the value of the Pledged Property is detrimentally affected due to any cause not attributable to Pledgee, Pledgor shall at the request of Pledgee provide Pledgee with
further guarantee in the way and on the terms acceptable to Pledgee, as to supplement or replace the Pledged Property fully. 

  

	8.2	Without the prior written consent by Pledgee, Pledgor shall not establish or permit to establish any new pledge or any other encumbrance on the Pledged Property; pledge or any other
encumbrance on the whole or part of the Pledged Property established without the prior written consent by Pledgee shall be null and void. 

  

	8.3	Without first giving written notice to Pledgee and having Pledgee’s prior written consent, Pledgor shall not transfer the Pledged Property, and any attempt by Pledgor to
transfer the Pledged Property shall be null and void. The proceeds from transfer of the Pledged Property by Pledgor shall be used to repay to Pledgee in advance the Guaranteed Liabilities or submit the same to the third party agreed with Pledgee.

  

	8.4	In case of any litigation, arbitration or other demand which may affect detrimentally the interest of Pledgor or Pledgee under the Transaction Agreements and hereunder or the
Pledged Property, Pledgor undertakes to notify Pledgee thereof in writing as soon as possible and promptly and shall take, at the reasonable request of Pledgee, all necessary measures to ensure the pledge interest of Pledgee in the Pledged Property.

  

	8.5	Pledgor shall not carry on or permit any act or action which may affect detrimentally the interest of Pledgee under the Transaction Agreements and hereunder or the Pledged Property.

  

 8 

 Translation 
  

	8.6	Pledgor shall provide, during the first month of each calendar quarter, Pledgee with the financial statement of Jiucheng Advertising for the preceding calendar quarter, including
but not limited to its balance sheet, profit statement and cash flow statement. 

  

	8.7	Pledgor guarantees that it shall, at the reasonable request of Pledgee, take all necessary measures and execute all necessary documents (including but not limited to supplementary
agreement hereof) as to ensure the pledge interest of Pledgee in the Pledged Property and the exercise and realization of the rights thereof. 

  

	8.8	In case of assignment of any Pledged Property as the result of the exercise of the right to the pledge hereunder, Pledgor guarantees that it will take all necessary measures to
realize such assignment. 

  
 Article 9 –
Change of Circumstances 
  

	9.1	As supplement and subject to compliance with other terms of the Transaction Agreements and this Agreement, in case that at any time the promulgation or change of any PRC Law,
regulations or rules, or change in interpretation or application of such laws, regulations and rules, or the change of the relevant registration procedures enables Pledgee to believe that it will be illegal or in conflict with such laws, regulations
or rules to further maintain the effectiveness of this Agreement and/or dispose of the Pledged Property in the way provided herein, Pledgor shall, at the written direction of Pledgee and in accordance with the reasonable request of Pledgee, promptly
take actions and/or execute any agreement or other document, in order to: 

  

	 	(1)	keep this Agreement remain in effect; 

  

	 	(2)	facilitate the disposal of the Pledged Property in the way provided herein; and/or 

  

	 	(3)	maintain or realize the guarantee established or intended to establish hereunder. 

  

 9 

 Translation 
  
 Article 10 – Effectiveness and Term of This Agreement 
  

	10.1	This Agreement shall become effective upon the satisfaction of all of the following conditions: 

  

	 	(1)	this Agreement is duly executed by each of the Parties; and 

  

	 	(2)	the Equity Pledge hereunder has been legally recorded in the shareholders’ register of Jiucheng Advertising. 

  
 Pledgor shall provide the registration certification of the Equity Pledge
being recorded in the shareholders’ register as mentioned above to Pledgee in a way satisfactory to Pledgee. 
  

	10.2	This Agreement shall have its valid term until the full performance of the Contractual Obligations or the full repayment of the Guaranteed Liabilities. 

  
 Article 11 - Notice 
  

	11.1	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.

  

	11.2	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. 

  
 Article 12 - Miscellaneous 
  

	12.1	Pledgee may, upon notice to Pledgor but not necessarily with Pledgor’s consent, assign Pledgee’s rights and/or obligations hereunder to any third party; provided that
Pledgor may not, without Pledgee’s prior written consent, assign Pledgor’s rights, obligations and/or liabilities hereunder to any third party. Successors or permitted assignees (if any) of Pledgor shall continue to perform the obligations
of Pledgor under this Agreement. 

  

	12.2	The amount of the Guaranteed Liabilities decided by Pledgee at its sole discretion 

  

 10 

 Translation 
  
 in its exercise of the right of pledge to the Pledged Property according to this Agreement shall be the conclusive evidence
of the Guaranteed Liabilities hereunder. 
  

	12.3	This Agreement shall be prepared in the Chinese language in [two (2)] original copies, with each involved Party holding one (1) copy hereof. 

  

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

  

	12.5	Any disputes arising hereunder and in connection herewith shall be settled through consultations between 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 both Parties. 

  

	12.6	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. 

  

	12.7	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. 

  

	12.8	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.

  

	12.9	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. 

  

 11 

 Translation 
  

	12.10	Any amendments or supplements to this Agreement shall be made in writing. Except for assignment by Pledgee of its rights hereunder according to Article 12.1 of this Agreement, the
amendments or supplements to this Agreement shall take effect only when properly signed by the Parties to this Agreement. 

  

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

  

	12.12	At the time of execution hereof, Pledgor shall sign a power of attorney (hereinafter the “Power of Attorney”) to authorize any person designated by Pledgee to sign
on its behalf according to this Agreement any and all legal documents necessary for the exercise by Pledgee of its rights hereunder. Such Power of Attorney shall be delivered to Pledgee to keep in custody and, when necessary, Pledgee may at any time
submit the Power of Attorney to the relevant government authority. 

  
 [The following is intended to be blank] 
  

 12 

 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.

  

			
	He Xudong
	 Signature:
	 	  

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

			
	Signature by Authorized Representative:	 	  

	Name:	 	 
	Position:	 	 

  

 13 

 Translation 
  
 Appendix I: 
  
 Basic Information of Jiucheng Advertising 
  

			
	 Company Name:
	  	Shanghai Jiucheng Advertisement Co., Ltd.
		
	 Registered Address:
	  	Room 306C, No. 88 Liuhe Road, Shanghai, PRC
		
	 Registered Capital:
	  	RMB600,000
		
	 Legal Representative:
	  	He Xudong
		
	 Equity Structure:
	  	 

  

						
	 Shareholder’s Name

	  	Contribution
(RMB)

	  	Equity
Share

	 
	 He Xudong
	  	RMB60,000	  	10	%
	 Shanghai Jiucheng Information Technology Co., Ltd.
	  	RMB540,000	  	90	%
			
	 Total
	  	RMB600,000	  	100	%

  

 14 

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 Appendix II: 
  
 Format of the Power of Attorney 
  
 I, He Xudong, hereby irrevocably entrusts                     ,
with his/her identity card number                     , to be my authorized trustee to sign on my behalf all legal documents necessary or
desirous for The9 Computer Technology Consulting (Shanghai) Co., Ltd. to exercise its rights under the Equity Pledge Agreement Regarding Shanghai Jiucheng Advertisement Co., Ltd. between it and myself. 
  

			
	 Signature:
	 	  

		
	 Date:
	 	  

  

 15

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