Document:

YOU On Demand Holdings, Inc.: Exhibit 10.28 - Filed by newsfilecorp.com

THIS CONVERTIBLE
PROMISSORY NOTE HAS NOT
BEEN REGISTERED UNDER
THE SECURITIES ACT OF
1933, AS AMENDED. NO
SALE OR DISPOSITION MAY
BE EFFECTED EXCEPT IN
COMPLIANCE WITH RULE 144
UNDER SAID ACT OR
AN EFFECTIVE REGISTRATION
STATEMENT RELATED THERETO
OR AN OPINION OF
COUNSEL FOR PURCHASER
SATISFACTORY TO THE
COMPANY THAT SUCH
REGISTRATION IS NOT
REQUIRED UNDER THE ACT
OR RECEIPT OF A
NO-ACTION LETTER FROM
THE SECURITIES AND
EXCHANGE COMMISSION. 

YOU ON DEMAND HOLDINGS, INC. 

CONVERTIBLE PROMISSORY NOTE 

DECEMBER 21, 2015 

U.S. $17,717,846.60 

FOR VALUE RECEIVED, YOU On Demand Holdings, Inc., a Nevada
corporation (the “Company”), hereby promises to pay to the order of
Beijing Sun Seven Stars Culture Development Limited, a P.R.C. company
(“Purchaser”), the aggregate principal sum of Seventeen Million Seven
Hundred Seventeen Thousand Eight Hundred Forty-six & 60/100 Dollars
($17,717,846.60) (the “Principal”) in lawful money of the United States
of America and in immediately available funds, subject to the provisions
contained herein. This Convertible Note (this “Note”) is issued pursuant
to the terms of that certain Amended and Restated Securities Purchase Agreement
dated as of December 21, 2015 (the “Effective Date”), by and between the
Company and Purchaser (as amended from time to time, the “Purchase
Agreement”). The Company and Purchaser shall be collectively referred to as
the “Parties”. Unless otherwise expressly provided in this Note,
initially capitalized words or terms used in this Note shall have the meanings
set forth in the Purchase Agreement. 

1.     PRINCIPAL
REPAYMENT 

1.1     Maturity Date. The Principal
and any other amounts payable to Purchaser hereunder, shall be due and payable
to Purchaser on May 21, 2016 (the “Maturity Date”). 

1.2     Interest. Interest will
accrue from the date hereof on the Principal amount at the rate of fifty-six one
hundredths of a percent (0.56%) per annum until payment in full or until the
conversion of the Principal pursuant to Section 2 of this Note. If the
Principal is not converted pursuant to Section 2 of this Note, interest
shall be paid with the Principal amount on the Maturity Date. If the Principal
is converted pursuant to Section 2 of this Note, interest accrued through
the Conversion Date shall be paid on the Conversion Date in accordance with
Section 2 of this Note. 

1.3     Payment. All payments made
pursuant to this Note shall be made by check or wire transfer of immediately
available funds and in lawful money of the United States of America to Purchaser
at the address for notices pursuant to Section 5.4 below or at such other place
as Purchaser may designate. Any payment on this Note shall be applied first to
accrued interest, then to other amounts owing hereunder, and thereafter to the
outstanding principal balance hereof. 

1.4     Prepayment. The Company
shall have the option to prepay this Note, together with accrued but unpaid
interest, in whole or in part, at any time without premium or penalty. 

2.     CONVERSION 

2.1     Limitation on Conversion Pending
Stockholder Approval. The Parties acknowledge and agree that, absent receipt
of the necessary stockholder approval, the Company shall not effect any
conversion, and Purchaser shall not have any right to convert , any portion of
this Note into shares of common stock of the Company (the “Common Stock”)
to the extent that after giving effect to such issuance after exercise as set
forth on the applicable notice of exercise, Purchaser (together with Purchaser’s
affiliates, and any other persons acting as a group together with Purchaser or
any of Purchaser’s affiliates), would beneficially own in excess of 19.99% of
the outstanding shares of Common Stock. For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by Purchaser and its
affiliates shall include the number of shares of Common Stock issuable upon
conversion of this Note with respect to which such determination is being made,
but shall exclude the number of shares of Common Stock that would be issuable
upon (i) exercise of the remaining, nonexercised portion of this Note
beneficially owned by Purchaser or any of its affiliates and (ii) exercise or
conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other securities of the Company
or its subsidiaries that would entitle the holder thereof to acquire at any time
shares of Common Stock) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by Purchaser or
any of its affiliates. Except as set forth in the preceding sentence, for
purposes of this Section 1(d), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and the rules and regulations promulgated
thereunder. In addition, for purposes of this Section 2.1, “group” has the
meaning set forth in Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder. To the extent that the limitation contained
in this Section 2.1 applies, the determination of whether this Note is
convertible (in relation to other securities owned by Purchaser together with
any affiliates) and of which portion of this Note is convertible shall be in the
sole discretion of Purchaser, and the submission of a notice of conversion shall
be deemed to be Purchaser’s determination of whether this Note is convertible
(in relation to other securities owned by Purchaser together with any
affiliates) and of which portion of this Note is convertible. For purposes of
this Section 2.1, in determining the number of outstanding shares of Common
Stock, Purchaser may rely on the number of outstanding shares of Common Stock as
reflected in (i) the Company’s most recent Form 10-K, Form 10-Q, Current Report
on Form 8-K or other public filing with the United States Securities and
Exchange Commission, as the case may be, (ii) a more recent public announcement
by the Company or (iii) a more recent notice by the Company or the Company’s
transfer agent to Purchaser setting forth the number of shares of Common Stock
then outstanding. Upon request of Purchaser, the Company shall promptly, and in
any event within one trading day of such request, confirm to Purchaser the
number shares of Common Stock then outstanding. Purchaser shall not be entitled
to vote any shares of Common Stock acquired by it pursuant to this Note or the
other Company Agreements in connection with any such stockholder approval sought
by the Company. 

2.2     Stockholder Approval. As
promptly as practicable after the Closing under the Purchase Agreement, the
Company covenants and agrees to use commercially reasonable efforts to obtain
any approvals of the Company’s stockholders required under the Company’s
organizational documents, applicable law and/or the listing rules and
regulations of NASDAQ in connection with the transactions contemplated by this
Note (the “Conversion Conditions”). 

2.3     Automatic Conversion into Common
Stock. Subject to Section 2.1, upon satisfaction of the Conversion
Conditions, all of the Principal and accrued but unpaid interest shall be
automatically converted into 9,208,860 shares of the Common Stock, subject to
adjustment pursuant to Section 2.1(b) of the Purchase Agreement (the
“Conversion Shares”).

2.4     Mechanics of Conversion.
Upon satisfaction of the Conversion Conditions, the Company and Purchaser shall
agree to a date for such conversion which, in no event, shall be later than
three (3) business days following the date of the satisfaction of the Conversion
Conditions (the “Conversion Date”). On or before the Conversion Date, Purchaser
shall surrender the Note for conversion and the Company shall denote in its
corporate records the ownership by Purchaser of the Conversion Shares, effective
as of close of business on the Conversion Date. Effective as of close of
business on the Conversion Date (i) the rights of Purchaser with respect to the
Principal, together with all other amounts due hereunder to Purchaser shall
cease, and (ii) Purchaser shall be treated for all purposes as having become the
record holder of such Conversion Shares. The issuance of Common Stock upon
conversion of this Note shall be made without charge to Purchaser for any tax in
respect of such issuance, and such Conversion Shares shall be issued in such
names as may be directed by Purchaser. 

2.5     Adjustment of Conversion
Shares. Subject to Section 2.6 hereof, the number and kind of
Conversion Shares or other securities to be issued upon conversion determined
pursuant to Section 2.3 shall be subject to adjustment from time
to time upon the happening of certain events while this conversion right remains
outstanding, as follows: 

(a)     Merger, Sale of Assets, etc.
If the Company at any time shall consolidate with or merge into or sell or
convey all or substantially all its assets to any other corporation or other
entity, this Note shall thereafter be deemed to evidence the right to purchase
such number and kind of shares or other securities and property as would have
been issuable or distributable on account of such consolidation, merger, sale or
conveyance, upon or with respect to the securities subject to the conversion or
purchase right immediately prior to such consolidation, merger, sale or
conveyance. The foregoing provision shall similarly apply to successive
transactions of a similar nature by any such successor or purchaser. Without
limiting the generality of the foregoing, the anti-dilution provisions of this
Section 2.5 shall apply to such securities of such successor or purchaser
after any such consolidation, merger, sale or conveyance. 

(b)     Reclassification. If the
Company at any time shall, by reclassification or otherwise, change the Common
Stock into the same or a different number of securities of any class or classes
that may be issued or outstanding, this Note shall thereafter be deemed to
evidence the right to purchase an adjusted number of such securities and kind of
securities as would have been issuable as the result of such change with respect
to the Common Stock immediately prior to such reclassification or other change.

(c)     Stock Splits, Combinations and
Dividends. If the shares of Common Stock are subdivided or combined into a
greater or smaller number of shares of Common Stock, or if a dividend is paid on
the Common Stock in shares of Common Stock, the number of Conversion Shares to
be issued upon conversion shall be proportionately reduced in case of
subdivision of shares or stock dividend or proportionately increased in the case
of combination of shares, in each such case by the ratio which the total number
of shares of Common Stock outstanding immediately after such event bears to the
total number of shares of Common Stock outstanding immediately prior to such
event. 

2.6     Adjustment Notices. Whenever
the number of Conversion Shares to be issued upon conversion is adjusted as
provided in Section 2.5, the Company shall promptly deliver to Purchaser
written notice setting forth the revised number of Conversion Shares with a
statement of facts regarding the adjustment and the computation thereof. 

3.     COVENANTS OF
THE COMPANY 

3.1     Payment of Principal;
Conversion. The Company hereby covenants and agrees that it shall pay or
cause to be paid all amounts due hereunder on the Maturity Date or, if
applicable prior to the Maturity Date, the Company shall effect or cause to be
effected any conversion of the Principal into Conversion Shares. 

3.2     Reserves. From the
date hereof until the Conversion Date or Maturity Date, whichever is later, the
Company shall at all times reserve and keep available, out of its authorized but
unissued Common Stock, solely for the purpose of issue upon conversion of this
Note, such number of shares of Common Stock as shall then be issuable upon the
conversion of this Note. The Company covenants that all such shares of Common
Stock shall, upon issuance, be duly and validly issued, fully paid and
non-assessable. 

4.    
DEFAULT, ACCELERATION 

4.1     Events of Default. Each of
the following events shall be an “Event of Default” hereunder: (i) the Company
fails to pay timely any amounts due under this Note on the date the same becomes
due and payable, (ii) the Company breaches any covenant, representation,
warranty, or agreement under this Note or any other Company Agreements, (iii)
the Company files a petition or action for relief under any bankruptcy,
insolvency or moratorium law or any other law for the relief of, or relating to,
debtors, now or hereafter in effect, or makes any assignment for the benefit of
creditors or takes any action in furtherance of any of the foregoing, or (iv) an
involuntary petition is filed against the Company (unless such petition is
dismissed or discharged within sixty (60) days of filing) under any bankruptcy
statute now or hereafter in effect, or a custodian, receiver, trustee, assignee
for the benefit of creditors (or other similar official) is appointed to take
possession, custody or control of any property of the Company. 

4.2     Acceleration. Upon the
occurrence of an Event of Default, all outstanding principal, accrued interest
and other amounts owing hereunder shall, at the option of Purchaser, and, in the
case of an Event of Default pursuant to Sections 4.1(a)(iii) or (iv) above,
automatically, be immediately due and payable. Purchaser shall have all rights
and may exercise any remedies available to it at law or in equity, successively
or concurrently.

4.3     Costs of Collection. In the
event of any Event of Default hereunder, the Company shall pay all reasonable
attorneys’ fees and court costs incurred by Purchaser in enforcing and
collecting this Note. 

5.    
MISCELLANEOUS 

5.1     Remedies Cumulative and
Continuing. All powers and remedies of Purchaser hereunder with respect to
an Event of Default shall, to the extent permitted by law, be deemed cumulative
and not exclusive of any other thereof or of any other power or remedy available
to Purchaser, by judicial proceedings or otherwise, to enforce the performance
or observance of the covenants and agreements contained in this Note, and every
power and remedy given by this Note or by applicable law to Purchaser may be
exercised from time to time, and as often as shall be deemed expedient by
Purchaser. 

5.2     Replacement; Exchange. If
this Note is destroyed, lost or stolen, the Company will deliver a new note to
Purchaser on the same terms and conditions as this Note with a notation of the
unpaid principal in substitution of the prior Note. Purchaser shall furnish to
the Company reasonable evidence that the Note was destroyed, lost or stolen and
any security or indemnity that may be reasonably required by the Company in
connection with the replacement of this Note. 

5.3     Choice of Law. This Note
shall be governed by and construed in accordance with the Requirements of Law of
the State of New York without giving effect to the principles of conflict of
Laws. 

5.4     Notices. All notices or
other communications required or permitted hereunder shall be in writing and
shall be delivered personally, telecopied or sent by certified, registered or
express mail, postage prepaid. Any such notice shall be deemed given if
delivered personally or telecopied, on the date of such delivery, or if sent by
reputable overnight courier, on the first Business Day following the date of
such mailing, as follows: 

	 	(a) 	
      if to the Company:

	 	 	 
	 		
      YOU On Demand Holdings, Inc. 

	 	 	375 Greenwich Street, Suite 516  
	 	 	New York, New York 10013  
	 	 	Attn: Board of Directors  
	 	 	Telecopy: 86+10-8586-2775 
	 	 	 
	 	(b) 	
      if to Purchaser:

	 	 	 
	 		
      Beijing Sun Seven Stars Culture Development Limited
    

	 	 	Eastern Fangzheng Road, Southern Dongying
    Village  
	 	 	Hancunhe Town, Fangshan District  
	 	 	Beijing, China  
	 	 	Attn: Zhang Jie  
	 	 	Telecopy: 86+10 5912-3988 

Any Party may by notice given in accordance with this Section
5.4 designate another address or Person for receipt of notices hereunder. 

5.5     Assignment. This Note shall
be binding upon the Company and Purchaser and its successors and assigns.
Neither the Company nor Purchaser shall make any assignment of its rights under
this Note or other Company Agreements or subject this Note or other Company
Agreements or its rights hereunder to any lien or security interest of any kind
whatsoever; and any such assignment, lien or security interest shall be
absolutely void and unenforceable as against Purchaser; provided, however,
Purchaser shall be entitled to assign this Note or other Company Agreements to
an Affiliate. 

5.6     Cooperation; Further Action.
Each Party to this Note shall, without further consideration, execute and
deliver any further or additional instruments and perform any acts which may
become reasonably necessary to effectuate and carry out the purposes of this
Note. 

5.7     Severability. If any
provision of this Note shall be held to be invalid or unenforceable, such
determination shall not affect the remaining provisions of this Note. 

5.8     Amendments. This Note may
not be altered or amended, and no right under this Note may be waived, except by
a writing executed by the Parties to this Note or except as otherwise provided
in this Note. No waiver of any term, provision, or condition of this Note, in
any one or more instances, shall be deemed or construed as a further or
continuing waiver of any such term, provision, or condition, or as a waiver of
any other term, provision, or condition of this Note. 

5.9     Headings. The headings in
this Note are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. 

[Remainder of Page Intentionally Left Blank; Signature Page
Follows] 

IN WITNESS WHEREOF, the undersigned have executed this Note as
of the date first set forth above. 

	 	YOU ON DEMAND HOLDINGS, INC. 
	 	  	  
	 	  	  
	 	  	  
	 	By: 	/s/
      Shane McMahon 
	 	Name: 	Shane
      McMahon 
	 	Title: 	Chairman

	 	BEIJING SUN SEVEN STARS CULTURE

	 	DEVELOPMENT LIMITED: 
	 	 
	 	 
	 	 
	 	By: 	/s/
      Bruno Wu 
	 	Name: 	Bruno
      Wu  
	 	Title: 	Chairman & CEO  

[Signature Page – Convertible Promissory Note]YOU On Demand Holdings, Inc.: Exhibit 10.29 - Filed by newsfilecorp.com

PERSONAL AND CONFIDENTIAL 

SEPARATION AGREEMENT 

Agreement made as of this 22 day of January, 2016 between YOU
ON DEMAND HOLDINGS, INC., a Nevada Corporation, and its subsidiary affiliates
(the “Company”) and WEICHENG LIU, an individual residing at (“Executive”) (the
“Separation Agreement”). 

BACKGROUND 

The Company and Executive entered into an Employment Agreement
dated January 31, 2014 (the “Employment Agreement”) pursuant to which Executive
has served as Chief Executive Officer of the Company. The Company and Executive
now wish to terminate the Employment Agreement as of January 22, 2016 on the
terms set forth herein, without the Company invoking a right to terminate for
Cause or Executive invoking any right to resign with Good Reason. 

NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants herein contained and for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows: 

1.     Termination of
  Executive’s Employment. The Company hereby terminates Executive’s employment
  effective January 22, 2016, (the “Termination Date”). Provided that the Company
  complies in full with the terms of this Separation Agreement, Executive hereby
  waives further notice of such Termination, and waives any right he may have to
  invoke his right to terminate his employment with good reason based on any
  actions of the Company prior to this date, and based on the transactions
  contemplated hereby. 

2.     Resignation as Officer,
Director, and Plan Fiduciary. To the extent that, as of the Termination
Date, Executive has not previously resigned from any position as an officer,
director, trustee, plan administrator or fiduciary with respect to the Company,
and each of its parents, subsidiaries, affiliates, and any of their employee
benefit or pension plans, Executive shall be deemed to have resigned all such
positions as of the Termination Date without further action on the part of
Executive or the Company. 

3.     Severance. 

3.1     Upon the Executive signing this
Separation Agreement, the Company agrees to pay the Executive, as severance, the
amount of Four Hundred and Five Thousand United States Dollars (US $405,000.00),
less standard payroll withholdings as applicable (the “Severance Payment”). The
Severance Payment shall be paid in equal installments on the Company’s regularly
scheduled payroll date over a period of eighteen (18) months beginning with the
first such payroll date occurring in February 2016; provided, however, that if
the Executive completes to the Company’s satisfaction the Executive’s obligation
under Section 5.b below on or before February 28, 2016, the Company will
accelerate the payment schedule such that the Executive will receive one-third
of the Severance Payment as the first installment, with the remaining two-thirds of the Severance Payment paid in equal
installments over the following 12 months.

3.2     The Company will provide (i)
additional payment of Sixty Thousand United States Dollars (US $60,000.00), less
standard payroll withholding as applicable, (ii) accrued salary as earned
through January 15, 2016, and (iii) four (4) weeks base salary on account of
vacation time earned but not taken by Executive, each payment will be made 5
days following the Effective Date of this Separation Agreement

3.3     All payments to the Executive under
the Separation Agreement shall be made in the same manner as the Executive’s
salary during his employment, provided, however, that the Executive may provide
written notice to the Company that payment should be deposited to a different
account.

3.4     The terms of Section 5.1.2 of the
Employment Agreement shall apply to all outstanding unvested options, warrants
or restricted stock, and all vested options and warrants granted to
Executive.

3.5     The Executive shall not be required
to mitigate the Severance Payments by seeking other employment or otherwise
rendering services for compensation and such payments shall not be reduced or
abated by reason of any compensation (in whatever form) earned by Executive on
account of any other employment or rendering of services, without regard to when
such compensation is paid. 

3.6     The Executive agrees that he has
been reimbursed for any and all business expenses incurred through the
Termination Date.

3.7     Within five days following the
Termination Date, Executive will return to the Company all confidential or
proprietary information of the Company and copies thereof. Executive may retain
his Company issued laptop computer; provided that all Company confidential or
proprietary information is removed from the laptop computer as part of
compliance with the preceding sentence.

3.8     Within ten days following the
Termination Date, the Company shall make reasonable efforts to assist the
Executive in appropriately transferring the lease agreements for the vehicle and
housing used by the Executive during his employment with the Company to the
Executive or the Executive’s designee.

4.     Releases. Simultaneous with
the execution of this Separation Agreement, Executive shall sign and deliver to
the Company a General Release in the form attached hereto as Exhibit A.
Simultaneous with the execution of this Separation Agreement, the Company shall
deliver to the Executive its duly executed General Release in the form attached
hereto as Exhibit B. Executive understands and agrees that he shall not receive
any payment or benefit under this Separation Agreement until and unless the
General Release attached hereto as Exhibit A becomes effective. In the event of
Executive’s death prior to payment of the Severance Payments, the payments shall
be made to Executive’s Estate upon delivery of a release executed by the Estate,
and the Company shall deliver its release to the Estate. 

- 2 - 

5.     Transition Assistance and
Fee. In exchange for the benefits and consideration the Executive is
receiving under this Separation Agreement, the Executive agrees to provide the
Company with the transition services described in this paragraph 5 through and
including the period for with the Executive is receiving payment pursuant to
paragraph 3 above (the “Transition Services”). The Company will provide the
Executive with the resources necessary to perform these services, e.g. email
access, related information. The Executive understands and agrees that the
benefits and consideration the Executive is eligible to receive under this
Separation Agreement are contingent upon the Executive’s compliance with the
Executive’s obligation under this Separation Agreement, including, but not
limited to, the timely provision of the following Transition Services: 

	 	a. 	
      Implementation of employment decisions as directed by the
      Company’s Board of Directors.

	 	 	
       

	 	b. 	
      Implementation and completion of all signature and
      documentation requirements to remove the Executive and his wife from the
      VIE structure and otherwise assist the Company in restructuring the VIE to
      the Company’s satisfaction.

	 	 	
       

	 	c. 	
      Utilize your best efforts to secure execution of a
      contract between Huawei and the Company on or before March 31, 2016 with a
      contract amount of no less than Five Million Renminbi Yuan (RMB5,000,000)
      and an initial payment to the Company of at least 50% of the contract
      amount on or before March 31, 2016 (the “Huawei Contract”).

	 	 	
       

	 	d. 	
      Provide support and cooperation in the Company’s
      completion of its 2015 audit process.

If the Executive satisfies 5.b. above and if the Huawei
Contract as described in 5.c above is consummated and the initial payment is
received by the Company, then the Company shall pay the Executive 20% of the
contract amount collected by March 31, 2016, within 15 days following the
Company’s receipt of the Huawei Contract initial payment. 

6.     Non-Disparagement. Except as
otherwise required by law, the Executive agrees to not disparage the Company,
its officers, directors, employees, shareholders, attorneys and agents, or the
Executive in any manner likely to be harmful to its or their business, business
reputation, or personal reputation; provided that they will respond accurately
and fully to any question, inquiry or request for information when required by
legal process. Similarly, the Company shall direct its executive management team
and members of its Board of Directors not to disparage Executive in any manner
likely to be harmful to his business or personal reputation. This obligation
applies to direct statements or statements that either party causes to be made
through others and applies to statements in any medium, e.g., hard copy, email,
electronic messaging, internet-based postings, etc. If either the Company or the
Executive breaches this provision, the other party may seeks for a breach of
this provision, and in the event the Company or Executive prevails in any action
for breach of this provision, it shall be entitled to recover its attorneys’
fees and costs.

- 3 - 

7.     Insurance. For a period of
five (5) years from the Termination Date, the Company shall maintain in effect
directors and officers insurance in an amount not less than the amount
maintained as of the present date, which shall cover Executive with respect to
his conduct, actions or omissions as an officer, director, manager, employee or
agent of the Company (or any parent, subsidiary, affiliate or benefit plan of
the Company or any of the foregoing).

8.     Lock Up Agreement. Executive
hereby agrees that he shall not sell, dispose of, transfer, make any short sale
of, grant any option for the purchase of, or enter into any hedging or similar
transaction with the same economic effect as a sale of, any shares of stock (or
other securities) of the Company held, directly or indirectly, by Executive
until May 20, 2016; provided further, that Executive hereby also agrees that for
so long as Executive is the beneficial owner of more than five percent of the
Company’s stock (or other securities), that Executive will execute and deliver a
lock-up or such other agreements as may be reasonably requested by the Company
or the managing underwriters or placement agents of any public offering of
securities of the Company that contain restrictions consistent with the
foregoing. 

9.     Survival of Obligations. The
provisions of this Separation Agreement and the provisions of the Employment
Agreement which by their terms or substance contemplate continuing effect shall
survive the termination of such agreements.

10.     Confidentiality. 

10.1     This Separation Agreement and the
Exhibits hereto are confidential and the Parties shall not disclose any
information regarding their terms, except that Executive may disclose them to
Executive’s immediate family and any tax, legal or other counsel that he has
consulted regarding the meaning or effect hereof or as required by law.
Executive will instruct each of the foregoing not to disclose the same to
anyone. The Company shall be permitted to disclose any such information only to
any tax, legal or other counsel of the Company or as required by law or standard
corporate reporting purposes. 

10.2     Any non-disclosure provision in
this Separation Agreement does not prohibit or restrict either Party from
responding to any inquiry about Separation Agreement or its underlying facts and
circumstances by the Securities and Exchange Commission (SEC), the Financial
Industry Regulatory Authority (FINRA), or any other governmental entity. 

11.     Public Announcements. The
text of all statements or releases given to the employees or business associates
of the Company or issued to the press regarding this agreement or the
termination of Executive’s employment shall be mutually agreed to by Executive
and the Company; with the exception of any Form 8k or related press release or
otherwise as required by law or securities regulation. 

12.     Interpretation; Merger.

12.1     Whenever possible, each provision
of this Separation Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Separation Agreement shall
be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein. 

- 4 - 

12.2     This Separation Agreement (and the
Employment Agreement to the extent preserved herein) constitutes the complete
and entire agreement and understanding among the parties, and supersedes any and
all prior or contemporaneous agreements, commitments, understandings or
arrangements, whether written or oral, between or among any of the parties, in
each case concerning the subject matter hereof.

13.     Governing Law. This
Separation Agreement shall be governed by and construed in accordance with the
internal law of the State of New York without application of its principles of
conflict of laws.

14.     Exclusive Jurisdiction and
Venue. The parties consent and agree that any dispute arising out of this
Separation Agreement may be brought in: (1) the state or federal courts within
New York County, New York; or (2) the People’s Republic of China (“PRC”); or in
the state, province or other applicable political subdivision in which Executive
resides at the time such dispute arises. The parties hereby consent and agree to
be subject to jurisdiction within in: (1) the state or federal courts within New
York County, New York; or (2) the People’s Republic of China (“PRC”); or in the
state, province or other applicable political subdivision in which Executive
resides for purposes of an action, lawsuit or claim arising out of this
Separation Agreement. The parties consent and agree that service of process for
any such action may be effected by delivery by FedEx or similar carrier to a
party’s residence or place of business. 

15.     Amendment; Assignment; Binding
Effect; Counterparts and Signature. The terms of this Separation Agreement
may be amended only by a writing signed by all Parties. This Separation
Agreement may be assigned by the Company only in connection with a sale or
transfer of all or substantially all of its assets and business. The Separation
Agreement shall be binding upon and inure to the benefit of the parties, their
heirs, executors, personal representatives, successors and permitted assigns.
This Separation Agreement may be executed in separate counterparts, each of
which is deemed to be an original and all of which taken together constitute one
and the same agreement. This Separation Agreement, to the extent signed and
delivered by means of a facsimile machine or other electronic transmission
(including .pdf files), shall be treated in all manner and respects and for all
purposes as an original agreement or instrument and shall be considered to have the
same binding legal effect as if it were the original signed version thereof
delivered in person. 

(continued on next page) 

- 5 - 

IN WITNESS WHEREOF, the parties have each executed this
Separation Agreement as of the date first set forth above. 

	 	YOU ON DEMAND HOLDINGS, INC 
	 	  
	 	  
	 	By: 	/s/ Shane McMahon 
	 	Name: 	 
	 	Title: 	 
	 	  
	 	  
	 	  
	 	  
	 	/s/Weicheng Liu 
	 	WEICHENG LIU 

- 6 - 

Exhibit A 

PERSONAL AND CONFIDENTIAL 

GENERAL RELEASE

I, WEICHENG LIU, in consideration of and subject to the
performance by the Company, of its obligations under the Separation Agreement,
dated as of January 22, 2016 (the “Separation Agreement”), do hereby release and
forever discharge as of the date hereof the Company and its respective
affiliates and subsidiaries and all present, former and future directors,
officers, agents, representatives, employees, successors and assigns of the
Company and/or its respective affiliates and subsidiaries and direct or indirect
owners (collectively, the “Released Parties”) to the extent provided herein
(this “General Release”). The Released Parties are intended third-party
beneficiaries of this General Release, and this General Release may be enforced
by each of them in accordance with the terms hereof in respect of the rights
granted to such Released Parties hereunder. Terms used herein but not otherwise
defined shall have the meanings given to them in the Employment Agreement
between the parties dated as of January 31, 2014 (the “Employment
Agreement”).

1. I understand that any payments or benefits paid or granted
to me under the Separation Agreement and the Employment Agreement represent, in
part, consideration for signing this General Release and are not salary, wages
or benefits to which I was already entitled. I understand and agree that I will
not receive such payments and benefits unless I execute this General Release and
do not revoke this General Release within the time period permitted hereafter or
breach this General Release. Such payments and benefits will not be considered
compensation for purposes of any employee benefit plan, program, policy or
arrangement maintained or hereafter established by the Company or its respective
affiliates. 

2. Except as provided in paragraphs 4 and 5 below and except
for the provisions of the Separation Agreement and Employment Agreement which
expressly survive the termination of my employment with the Company, I knowingly
and voluntarily (for myself, my heirs, executors, administrators and assigns)
release and forever discharge the Company and the other Released Parties from
any and all claims, suits, controversies, actions, causes of action,
cross-claims, counter-claims, demands, debts, compensatory damages, liquidated
damages, punitive or exemplary damages, other damages, claims for costs and
attorneys’ fees, or liabilities of any nature whatsoever in law and in equity,
both past and present (through the date that this General Release becomes
effective and enforceable) and whether known or unknown, suspected, or claimed
against the Company and/or any of the Released Parties which I, or any of my
heirs, executors, administrators or assigns, ever had, now have, or hereafter
may have (through the date that this General Release becomes effective and
enforceable), by reason of any matter, cause, or thing whatsoever, from the
beginning of my initial dealings with the Company to the date of this General
Release relating exclusively to any claims arising from or relating in any way
to my employment relationship with the Company, the terms and conditions of that
employment relationship, and the termination of that employment relationship
(including, but not limited to, any allegation, claim or violation, arising
under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights
Act of 1991; the Age Discrimination in Employment Act of 1967, as amended
(including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963,
as amended; the Americans with Disabilities Act of 1990; the Family and Medical
Leave Act of 1993; the Worker Adjustment Retraining and Notification Act;
the Employee Retirement Income Security Act of 1974; any applicable Executive
Order Programs; the Fair Labor Standards Act; or their state or local
counterparts; or under any other federal, state or local civil or human rights
law, or under any other local, state, or federal law, regulation or ordinance;
or under any public policy, contract or tort, or under common law; or arising
under any policies, practices or procedures of the Company; or any claim for
wrongful discharge, breach of contract, infliction of emotional distress,
defamation; or any claim for costs, fees, or other expenses, including
attorneys’ fees incurred in these matters) (all of the foregoing collectively
referred to herein as the “Claims”). I understand and intend that this General
Release constitutes a general release of all claims and that no reference herein
to a specific form of claim, statute or type of relief is intended to limit the
scope of this General Release. 

- 7 - 

3. I represent and warrant that I have made no assignment or
transfer of any right, claim, demand, cause of action, or other matter covered
by paragraph 2 above. 

4. I agree that this General Release does not waive or release
any rights or claims that I may have under the Age Discrimination in Employment
Act of 1967 which arise after the date I execute this General Release. I
acknowledge and agree that my separation from employment with the Company in
compliance with the terms of the Separation Agreement or the Employment
Agreement shall not serve as the basis for any claim or action (including,
without limitation, any claim under the Age Discrimination in Employment Act of
1967). 

5. Notwithstanding anything in
this General Release to the contrary, this General Release shall not relinquish,
diminish, or in any way affect any rights or Claims (a) arising out of any
breach by the Company or by any Released Party of the Separation Agreement or
Employment Agreement after the date hereof, (b) I have to workers’ compensation
benefits or vested benefits under any pension plan, employee benefit plan or any
other plan or program of the Company, (c) with respect to indemnification for
actions brought against me in my capacity as an officer, manager or director of
the Company or any subsidiary or affiliate of the Company, whether pursuant to
statute, the Company’s articles of incorporation, bylaws or resolution, or any
separate agreement, or any policy of insurance but excluding any claims which I,
or any of my heirs, executors, administrators or assigns, ever had, now have, or
hereafter may have (through the date that this General Release becomes effective
and enforceable), by reason of any matter, cause, or thing whatsoever, from the
beginning of my initial dealings with the Company to the date of this General
Release, relating to any other relationship with the Company, including, without
limitation, as option holder, stockholder, lender, director or otherwise, or (d)
with respect to stock, options or warrants granted to me.

6. I agree that I hereby waive
all rights to sue or obtain equitable, remedial or punitive relief from any or
all Released Parties of any kind whatsoever for any Claim, including, without
limitation, reinstatement, back pay, front pay, and any form of injunctive
relief. Notwithstanding the foregoing, I acknowledge that I am not waiving and
am not being required to waive any right or ability, under federal, state or
local law, to file or initiate a charge, claim, or complaint of discrimination,
or any other unlawful employment practice that cannot be waived under law,
including the right to file an administrative charge or participate in an
administrative investigation or proceeding, with the U.S. Equal Employment
Opportunity Commission and/or any federal, state or city fair employment
practices agency; provided, however, that I disclaim and waive any right to share or participate in any monetary
award resulting from the prosecution of such charge or investigation or
proceeding. 

- 8 - 

7. In signing this General Release, I acknowledge and intend
that it shall be effective as a bar to each and every one of the Claims
hereinabove mentioned or implied. I expressly consent that this General Release
shall be given full force and effect according to each and all of its express
terms and provisions, including those relating to unknown and unsuspected Claims
(notwithstanding any state or local statute that expressly limits the
effectiveness of a general release of unknown, unsuspected and unanticipated
Claims), if any, as well as those relating to any other Claims hereinabove
mentioned or implied. I acknowledge and agree that this waiver is an essential
and material term of this General Release and that without such waiver the
Company would not have agreed to the terms of the Agreement. I further agree
that in the event that I should bring a Claim seeking damages against the
Company, or in the event that I should seek to recover against the Company in
any Claim brought by a governmental agency on my behalf, this General Release
may serve as a defense to such Claims to the maximum extent permitted by law. 

8.
  I agree that neither this General Release, nor the furnishing of the
  consideration for this General Release, shall be deemed or construed at any time
  to be an admission by the Company, any Released Party or myself of any improper
  or unlawful conduct. 

9. I agree that this General Release and the Agreement are
confidential and agree not to disclose any information regarding the terms of
this General Release or the Agreement, except to my immediate family and any
tax, legal or other counsel that I have consulted regarding the meaning or
effect hereof or as required by law, and I will instruct each of the foregoing
not to disclose the same to anyone. The Company agrees to disclose any such
information only to any tax, legal or other counsel of the Company or as
required by law. 

10. Any non-disclosure provision in this General Release does
not prohibit or restrict me (or my attorney) from responding to any inquiry
about this General Release or its underlying facts and circumstances by the
Securities and Exchange Commission (SEC), the Financial Industry Regulatory
Authority (FINRA), or any other self-regulatory organization or governmental
entity. 

11. I hereby acknowledge that
certain provisions of the Agreement, including Section 6 thereof shall survive
my execution of this General Release 

12. I acknowledge that I may hereafter
  discover Claims or facts in addition to or different than those which I now know
  or believe to exist with respect to the subject matter of the release set forth
  in paragraph 2 above and which, if known or suspected at the time of entering
  into this General Release, may have materially affected this General Release and
  my decision to enter into it. 

13. Whenever possible, each provision of this General Release
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this General Release is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this General
Release shall be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein. This General
Release constitutes the complete and entire agreement and understanding among
the parties, and supersedes any and all prior or contemporaneous agreements,
commitments, understandings or arrangements, whether written or oral, between or
among any of the parties, in each case concerning the subject matter hereof.

- 9 - 

14. You acknowledge that you are entering into this General
Release voluntarily and that you have read and understand the provisions of this
General Release. You further acknowledge and understand that, except as provided
for in and subject to, Section 6 of this General Release, this General Release
contains a full and final release of all of your claims against the Company and
the Released Parties, as described above. You have the right to consult with an
attorney. The Company hereby advises you, again, to consult with an attorney of
your choice before signing this Agreement.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

(i) I HAVE READ IT CAREFULLY; 

(ii) I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP
IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE
DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL
RIGHTS ACT OF 1964, AS AMENDED, THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH
DISABILITIES ACT OF 1990, AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED; 

(iii) I VOLUNTARILY CONSENT TO EVERYTHING IN IT; 

(iv) I UNDERSTAND THAT THE COMPANY IS ADVISING ME TO CONSULT
WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL
READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION; 

(v) I HAVE HAD AT LEAST 21 DAYS FROM JANUARY 6, 2016 THE DATE
OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT AND THE CHANGES MADE SINCE MY
RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT
RESTART THE REQUIRED 21-DAY PERIOD; 

(vi) I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE
EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME
EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED; 

(vii) I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND
VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH
RESPECT TO IT; AND 

(viii) I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY
NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY
AND BY ME. 

- 10 - 

SIGNED: /s/ Weicheng Liu                                                       
DATE:____________________ 

- 11 - 

Exhibit B 

PERSONAL AND CONFIDENTIAL 

GENERAL RELEASE

You On Demand Holdings, Inc. on behalf of itself, its parents,
subsidiaries and affiliates (collectively “the Company”), in consideration of
and subject to the performance by WEICHENG LIU (“Executive”), of his obligations
under the Separation Agreement, dated as of January 22, 2016 (the “Separation
Agreement”), do hereby release and forever discharge as of the date hereof
Executive and his heirs, executors, personal representatives, administrators,
successors and assigns (collectively, the “Released Parties”) to the extent
provided herein (this “General Release”). The Released Parties are intended
third-party beneficiaries of this General Release, and this General Release may
be enforced by each of them in accordance with the terms hereof in respect of
the rights granted to such Released Parties hereunder. Terms used herein but not
otherwise defined shall have the meanings given to them in the Employment
Agreement between the parties dated as of January 31, 2014 (the “Employment
Agreement”).

1.      Except as provided in
paragraph 3 below and except for the provisions of the Separation Agreement and
Employment Agreement which expressly survive the termination of Executive’s
employment with the Company, the Company releases and forever discharges the
Executive and the other Released Parties from any and all claims, suits,
controversies, actions, causes of action, cross-claims, counter-claims, demands,
debts, compensatory damages, liquidated damages, punitive or exemplary damages,
other damages, claims for costs and attorneys’ fees, or liabilities of any
nature whatsoever in law and in equity, both past and present (through the date
that this General Release becomes effective and enforceable) and whether known
or unknown, suspected, or claimed against the Executive and/or any of the
Released Parties which it, or any of its successors or assigns, ever had, now
have, or hereafter may have (through the date that this General Release becomes
effective and enforceable), by reason of any matter, cause, or thing whatsoever,
from the beginning of the Company’s initial dealings with the Executive to the
date of this General Release relating exclusively to any claims arising from or
relating in any way to Executive’s employment relationship with the Company, the
terms and conditions of that employment relationship, and the termination of
that employment relationship. The Company understands and intends that this
General Release constitutes a general release of all claims and that no
reference herein to a specific form of claim, statute or type of relief is
intended to limit the scope of this General Release. 

2.      The Company represents and
warrants that it has made no assignment or transfer of any right, claim, demand,
cause of action, or other matter covered by paragraph 1 above. 

3.      Notwithstanding anything in
this General Release to the contrary, this General Release shall not relinquish,
diminish, or in any way affect any rights or Claims arising out of any breach by
the Executive or by any Released Party of the Separation Agreement or Employment
Agreement after the date hereof.

4.      In signing this General
Release, the Company acknowledges and intends that it shall be effective as a
bar to each and every one of the Claims hereinabove mentioned or implied. The Company expressly consents that this General Release shall
be given full force and effect according to each and all of its express terms
and provisions, including those relating to unknown and unsuspected Claims
(notwithstanding any state or local statute that expressly limits the
effectiveness of a general release of unknown, unsuspected and unanticipated
Claims), if any, as well as those relating to any other Claims hereinabove
mentioned or implied. The Company acknowledges and agrees that this waiver is an
essential and material term of this General Release and that without such waiver
the Executive would not have agreed to the terms of the Separation Agreement.
The Company further agrees that in the event that it should bring a Claim
seeking damages against the Executive, or in the event that the Company should
seek to recover against the Executive in any Claim brought by a governmental
agency on its behalf, this General Release may serve as a defense to such Claims
to the maximum extent permitted by law. 

- 12 - 

5.     The Company agrees that neither this
General Release, nor the furnishing of the consideration for this General
Release, shall be deemed or construed at any time to be an admission by the
Executive or any Released Party, or by the Company of any improper or unlawful
conduct. 

6.     The Company agrees that this General
Release and the Separation Agreement are confidential and agrees not to disclose
any information regarding the terms of this General Release or the Separation
Agreement, except to any tax, legal or other counsel consulted regarding the
meaning or effect hereof or as required by law, and the Company will instruct
each of the foregoing not to disclose the same to anyone. The Executive agrees
to disclose any such information only to his immediate family, and to any tax,
legal or other counsel or as required by law. 

7.     Any non-disclosure provision in this
General Release does not prohibit or restrict the Company (or its attorney) from
responding to any inquiry about this General Release or its underlying facts and
circumstances by the Securities and Exchange Commission (SEC), the Financial
Industry Regulatory Authority (FINRA), or any other self-regulatory organization
or governmental entity. 

8.     The Company hereby acknowledges that
certain provisions of the Separation Agreement shall survive the execution of
this General Release.

9.     The Company acknowledges that it may
hereafter discover Claims or facts in addition to or different than those which
it now knows or believes to exist with respect to the subject matter of the
release set forth in paragraph 1 above and which, if known or suspected at the
time of entering into this General Release, may have materially affected this
General Release and its decision to enter into it. 

10.     Whenever possible, each provision
of this General Release shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this General Release is
held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other provision or any other jurisdiction, but this General
Release shall be reformed, construed and enforced in such jurisdiction as if
such invalid, illegal or unenforceable provision had never been contained
herein. This General Release constitutes the complete and entire agreement and understanding among the parties, and supersedes
any and all prior or contemporaneous agreements, commitments, understandings or
arrangements, whether written or oral, between or among any of the parties, in
each case concerning the subject matter hereof.

- 13 - 

11. The Company acknowledges that this General Release contains
a full and final release of all of its claims against the Executive and Released
Parties, as described above. 

12. The Company agrees that the provisions of this General
Release may not be amended, waived, changed or modified except by an instrument
in writing signed by an authorized representative of the company and by
Executive. 

SIGNED: /s/ Weicheng Liu                                                        
DATE:____________________

- 14 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]