Document:

Exhibit 10.33

 

English Translation

 

Huiyou Digital (Shenzhen) Ltd.

 

 

Domestic and Overseas Mobile Phone Market

 

Cooperation Agreement for Mobile Phone Game Product

 

Preinstalling Technology

 

(Profit Sharing Mode)

 

 

2011-[8]- [23]

 

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Party A:  Shenzhen Ouyinhua Information Consulting Co., Ltd. (hereinafter referred to as “Party A”)

 

Address: Rm 205, Block CD, Tianfa Building, Tian’an Digital City, Futian District, Shenzhen

 

Tel.: 0755-83432556

 

Fax: 0755-83432556-807

 

Contact person: Tian Jian

 

Party B:  Huiyou Digital (Shenzhen) Ltd. (hereinafter referred to as “Party B”)

 

Address: 818#, Block B, Zhenye Building, No.2014 Bao’an South Road, Luohu District, Shenzhen

 

Tel.: 0755-82043991

 

Fax: 0755-82043991

 

Contact person: Xiao Jian

 

Party A and Party B, adhering to the principles of mutual benefit and common development, fully leveraging on their respective resource advantages and on the basis of friendly negotiations, hereby enter into the following cooperation terms:

 

1.  Scope of Cooperation between Party A and Party B

 

1.1           Whereas Party A has the advantageous resources of mobile phone solution providers or mobile phone manufacturers (hereinafter referred to as “Party A’s Customers”) and Party B has the rich mobile phone games, it is agreed by both parties after adequate communications that the parties will commence their cooperation in relation to the pre-installing technology for mobile phone game products within the scope of the domestic and overseas mobile phone market. Party B will provide Party A’s Customers with mobile phone game products and Party A will cause Party A’s Customers to preinstall Party B’s mobile phone game products in the ROM of their mobile phone terminals.

 

1.2           Party A and Party B will cooperate with respect to the pre-installation of Party B’s mobile phone game products in the ROM of the mobile phone terminals of Party A’s Customers. Party B’s mobile phone game products have been added by Party B with the charging modules, which can charge the fees from the end users possessing the mobile phones of Party A’s Customers (hereinafter referred to as the “End Users”).

 

1.3           Party B will provide the mobile operator fee deduction channels, product operation and technical maintenance of mobile phone game products as well as the service for Party A’s Customers.

 

1.4           Party A and Party B will cooperate by sharing the income from the Party B’s mobile phone game products pre-installed in the ROM of the mobile phone terminals of Party A’s Customers in the form of prorated royalties.

 

2.  Rights and Obligations of Party A and Party B

 

2.1           Party A’s Rights and Obligations

 

2.1.1         Party A shall be responsible for customer expansion and cause Party B’s mobile phone game products to be pre-installed in the ROM of customers’ mobile phone terminals.

 

2.1.2         When the End Users have any question or complaint for Party B’s mobile phone game products, and Party A cannot independently deal with any of them, Party A shall have the right to demand Party B to provide assistance. Party B shall respond promptly within a reasonable time.

 

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2.1.3         Party A has the right to use the trademarks, names or other relevant words, graphics and marks of Party B’s mobile phone game products during product making and publicity.

 

2.1.4       When Party A finds that any third party infringes on the copyright of Party B’s mobile phone game products, Party A shall be obligated to stop such infringement and provide Party B with the evidence proving the infringement of Party B’s copyright by a third party.

 

2.1.5         Party A shall be under an obligation to state in the documents, notices, product packages or publicity materials relating to Party B’s mobile phone game products that the developer and copyright owner of mobile phone games are Party B.

 

2.1.6         Party A warrants that Party B’s mobile phone game products will be only used for the pre-installation in the ROM of the mobile phone terminals of Party A’s Customers and shall not be separately priced or used for any other purpose.

 

2.1.7         Party A warrants that without Party B’s prior written consent, it will not modify the contents or form of Party B’s mobile phone game products.

 

2.1.8         Unless with Party B’s prior written consent, Party A shall not provide Party B’s mobile phone game products at any time, in any form and at any place solely to the entities other than Party A’s Customers for operation.

 

2.1.9         Unless with Party B’s prior written consent, Party A shall not cause the companies or entities other than Party B to pre-install mobile phone game products in the ROM of the mobile phone terminals of Party A’s Customers.

 

2.1.10  Party A shall have the responsibility to warrant the security of the mobile phone game products pre-installed in the ROM of the mobile phone terminals of Party A’s Customers and prevent programs from being stolen. If programs are stolen for any cause attributable to Party A or for inappropriate security measures, all the losses and legal liabilities arising therefrom shall be borne by Party A.

 

2.2           Party B’s Rights and Obligations

 

2.2.1         Party B shall assist Party A in fulfilling the subsequent maintenance and commercial follow-up work concerning Party A’s Customers.

 

2.2.2         Party B shall be responsible for the supporting work like the technology migration, product operation and technical maintenance of the mobile phone game products pre-installed in the ROM.

 

2.2.3         Party B shall complete the technology migration of mobile phone game products.

 

2.2.4         Party B shall be responsible for settlements of the cooperation income of both parties. Party B shall provide Party A with the inquiry system of cooperation income so that Party A makes payment distributions to Party A’s Customers.

 

2.2.5         Party B shall ensure that no dispute exists for the fee information of the mobile phone game products pre-installed in the ROM of mobile phone terminals. Party B shall be solely responsible for the complaints arising therefrom.

 

2.2.6         Party B shall timely pay Party A’s cooperation income to Party A pursuant to the provisions of this Agreement based on the data from Party B’s income statistical platform.

 

2.2.7         Party B warrants that the contents of the mobile phone game products provided by it are healthy and legal, do not infringe on the intellectual property of others and do not

 

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violate related national laws.

 

2.2.8         Party B warrants that all the mobile phone game products provided are lawfully owned by Party B and the intellectual property of mobile phone game products is owned by Party B and these products do not involve the intellectual property of any other company and individual. Party B undertakes that after mobile phone game products are put into operation, it will make necessary modifications and adjustments to mobile phone game products according to Party A’s feedback so as to further facilitate the sales through Party A’s channels.

 

3.  Distribution and Payment of Cooperation Income

 

3.1           Distribution principle of profits from cooperation between Party A and Party B: profit sharing mode. As for profit sharing, the profit sharing percentages of Party A and Party B are 70%: 30% (i.e. 30% for Party B). The cooperation conditions and settlement period for the customers developed by Party A are to be negotiated and contracted by Party A with Party A’s Customers. Party A shall directly make settlements with the customers developed by it and Party B will not be responsible for the settlements with Party A’s Customers.

 

3.2           The said profit sharing percentages are based on the cooperation between Party A and Party B under this Agreement. The income from Party B’s mobile phone game products pre-installed in the ROM of mobile phone terminals is subject to the data released by Party B’s statistical platform. The formula of specific profit distribution is as follows:

 

Party A’s monthly cooperation income = (income from Party B’s mobile phone game products pre-installed in the ROM of mobile phone terminals * (1 – bad debt 8%) * (1 – monthly commission rate of collection by operator) * 1 – business tax 5.5%) * 70%.

 

The commission rate of collection by operator described above shall be adjusted according to the adjustments made by local operators.

 

3.3           In order to encourage Party A to develop customer resources, Party B will separately pay relevant business development expenses to Party A within the cooperation period, in an amount of 15% of the shared profit payable by Party B to Party A for current month. Any change in the payment percentage of these expenses, if any, shall be agreed by both parties separately through consultation.

 

3.4           The actual settlement data between Party A and Party B is subject to Party B’s statistical platform data and calculated according to the said formula. Party B will provide Party A with the settlement budget report on the 20th day of next month. Party A and Party B shall make settlement once a month. During the settlement between the parties, they shall bear their respective tax liabilities and pay their respective taxes in connection with the settlement. Party A shall be solely responsible for settlements between Party A and Party A’s Customers and shall bear tax liabilities and pay taxes in connection with the settlement.  The specific settlement of domestic and overseas mobile phone market is as follows:

 

3.4.1         Regarding the income arising from the cooperation in the domestic mobile phone market, Party A and Party B shall make settlement once a month. The settlement period will be 40 days (for example, Party B will pay the settlement amount for January 1 to January 31 to Party A’s account on March 10. If the payment date falls on festival or holiday, the payment date will be postponed accordingly). Party A shall first issue the formal invoice to Party B within three working days after confirming settlement data. After receiving the formal invoice issued by Party A, Party B shall pay the cooperation budget amount to the account designated by Party A within the agreed settlement period.

 

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3.4.2         Regarding the income arising from the cooperation in the overseas mobile phone market, Party A and Party B shall make settlement once a month. The settlement period will be 70 days (for example, Party B will pay the settlement amount for January 1 to January 31 to Party A’s account on April 10. If the payment date falls on festival or holiday, the payment date will be postponed accordingly). The data of Party B’s statistical platform shall be denominated in Euro. Party B shall issue to Party A the “Statement of Account” with currency in Renminbi on the 60th day, and the exchange rate for calculation shall be based on the exchange rate between Euro and Renminbi as published by the Bank of China on the date when such calculation is made. Party A shall issue the formal invoice to Party B within three working days of the receipt of the settlement amount.

 

3.5           Delayed settlement: if settlement is delayed for any cause attributable to the operator, Party B shall not be deemed to breach this Agreement and the actual settlement between Party A and Party B will be delayed accordingly. Party A shall negotiate to determine time and term of settlement after communicating with Party B.

 

3.6           Information on Party A’s account:

 

Account holder: Shenzhen Ouyinhua Information Consulting Co., Ltd.

 

Account bank: Ping An Bank Co., Ltd., Guiyuan Sub-branch, Shenzhen

 

Account No.: 0122100613272

 

In the event of any change of account information of Party A, Party A shall provide Party B with the revised account information within three working days of the receipt of the Statement of Account.  Otherwise, all losses of settlement arising therefrom shall be borne by Party A.

 

3.7           Party A agrees that Party B entrusts its wholly-owned subsidiary to handle the settlement of cooperation amount hereunder, i.e. Party A issues the invoice to Party B’s wholly-owned subsidiary and after receiving the invoice from Party A, Party B’s wholly-owned subsidiary makes payment to Party A’s account. Party A will be informed of the name of Party B’s wholly-owned subsidiary and any information in relation thereto at the time of the issuance of invoice and settlement.

 

4.  Term and Termination of Cooperation

 

4.1           This Agreement shall be valid for three years, commencing on August 23, 2011 and ending on August 22, 2014.

 

4.2           Upon expiry of the valid term of this Agreement, if Party A and Party B do not propose in writing to terminate this Agreement, this Agreement shall be automatically renewed for one year. If either party intends to terminate this Agreement upon expiry of the valid term of this Agreement, it shall notify the other party in writing one month in advance.

 

4.3           Upon expiry of the valid term of this Agreement, if Party A proposes to terminate this Agreement pursuant to Article 4.2 above, in order to guarantee the continuity of the service provided for Party A’s Customers, Party B shall have the right to directly enter into the cooperation agreements with Party A’s Customers and Party A shall offer reasonable and necessary assistance in this regard.

 

4.4           Except for the termination circumstances as provided by law, either party shall have the right to demand for the termination of this Agreement if the other party has any of the following circumstances:

 

4.3.1         Its relevant industry qualification is cancelled by any government administrative

 

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department.

 

4.3.2         The other party is merged or acquired or goes into bankruptcy or liquidation proceedings.

 

4.3.3         The purpose of this Agreement cannot be achieved due to the occurrence of force majeure.

 

4.3.4         Both parties cannot perform the obligations hereunder.

 

4.5           If Party A has any of the circumstances as set forth in Article 4.4 above, Party B shall terminate this Agreement pursuant to Article 4.4 in order to guarantee the continuity of the service provided for Party A’s Customers. Party B shall have the right to directly enter into the cooperation agreements with Party A’s Customers.

 

5.  Confidentiality Clause

 

5.1           Each party shall keep confidential all the user data acquired by reason of this business.

 

5.2           For the purpose of this Agreement, “proprietary information” means any information obtained by a party from the other party (the “Disclosing Party”) in the course of cooperation, which is developed, created or discovered by the Disclosing Party, or known by the Disclosing Party, or transferred to the Disclosing Party and which has the business value to the Disclosing Party’s business. Proprietary information includes, but is not limited to, business secrets, computer programs, design techniques, know-how, processes, data, business and product development plans, information of the customers relating to the business of the Disclosing Party and other information, or the confidential information received by the Disclosing Party from other party. Both parties understand that the Disclosing Party possesses and will possess the proprietary information and the proprietary information is very important to the Disclosing Party and the cooperation between both parties creates the confidential and trust relationship between both parties concerning the proprietary information.

 

5.3           Without the prior written consent of the Disclosing Party, the other party shall keep any proprietary information confidential and not use or disclose, give or transfer to any person or entity such confidential information, except to the extent necessary for performing the obligations hereunder normally and entering into cooperation agreements with Party A’s Customers directly under the circumstances specified herein. Following the termination of this Agreement, both parties shall continue to bear the relevant confidentiality obligations hereunder for two years from the date of termination of this Agreement.

 

5.4           Both parties shall undertake confidentiality liabilities for this cooperation and the specific contents of this Agreement. Without the prior written consent of the other party, neither party shall disclose the specific contents of this Agreement and other related contents to any third party.

 

5.5           Except as required for the work set forth herein, without the written consent of the other party, neither party shall use or reproduce the trademark, mark, business information, technical and other data of the other party.

 

6.  Warranty Clause

 

6.1           Each party states, represents and warrants to the other party that:

 

6.1.1         It is an independent legal entity duly established and validly existing.

 

6.1.2         It has the qualification to engage in the cooperation hereunder and such cooperation is in compliance with the requirements of its business scope.

 

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6.1.3         Its authorized representative has been duly authorized to enter into this Agreement on its behalf.

 

6.1.4         It has the capacity to perform its obligations hereunder and such performance does not violate any legal restriction by which it is bound.

 

6.2           Party A warrants not to carry out reverse engineering, decompile or disassemble in any form the mobile phone game products provided by Party B nor use the same in any other manner that violates this Agreement or damages Party B’s interests.

 

6.3           Party A warrants to make settlement on the basis of the statistical sales data of the statistical platform data system provided by Party B and not to raise any objection to the sales data provided by Party B.

 

6.4           Party B warrants that:

 

6.4.1         It authorizes Party A to permit Party A’s Customers to pre-install Party B’s mobile phone game products in the ROM of their mobile phone terminals within the valid term of this Agreement.

 

6.4.2         It has the copyright or other lawful rights in respect of the mobile phone game products authorized to Party A’s Customers for pre-installation.

 

6.5           Party A and Party B shall duly exercise their rights and perform their obligations so as to ensure the smooth performance of this Agreement.

 

6.6           Party A warrants that Party A’s Customers will strictly comply with the provisions concerning Party A’s obligations and liabilities hereunder, including the provisions of confidentiality and protection of intellectual property rights in the agreements between Party A and Party A’s Customers, so that the proprietary information and intellectual property rights of Party B can be protected at the same level as that offered by this Agreement.

 

7.  Liabilities for Breach of Agreement

 

7.1           Except as otherwise provided for herein, if either party fails to perform its obligations hereunder in a sufficient and timely manner, such party shall bear the breaching liabilities and if such breach causes losses to the other party, such party shall compensate the direct and indirect economic losses suffered by the other party arising as a result thereof.

 

7.1.1         When Party A breaches this Agreement, Party B shall have the right to terminate this Agreement at any time. In addition to paying the liquidated damages of RMB20,000 to Party B, Party A shall compensate all the losses suffered by Party B arising therefrom. In the event that Party B terminates this Agreement by reason of Party A’s breach of this Agreement, in order to ensure the continuity of the service provided to Party A’s Customer, Party B shall have the right to directly enter into a cooperation agreement with Party A’s Customer and Party A shall offer reasonable and necessary assistance in this regard.

 

7.1.2         When Party B breaches this Agreement and fails to rectify its breach within 20 days after receiving the written notice from Party A in respect thereof, Party A shall have the right to terminate this Agreement and claim against Party B its economic losses arising therefrom.

 

7.2           Within the valid term of this Agreement and following the termination or discharge of this Agreement, Party A and Party B undertake not to provide any third party (including, but not limited to, any enterprise, business entity or organization having a business competition with the other party) with all information or materials concerning the business, technology, etc. of the other party, failing which Party A or Party B shall bear the corresponding liability and

 

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compensate all the losses incurred by the other party as a result thereof.

 

7.3           If, without the prior written consent of Party B, Party A causes any company or entity other than Party B to preinstall mobile phone game products in the ROM of the mobile phone terminals of Party A’s Customers, Party B shall have the right to claim the direct and indirect losses arising from customer loss from Party A.

 

8.  Disclaimer Clause

 

8.1           If either party suffers from economic losses or is prevented from performing this Agreement in whole or in part owing to any force majeure event that is unforeseeable and unavoidable and whose consequences are insurmountable (including the policy adjustments of operators and the adjustments of the relevant policies, laws and regulations), the party so affected shall not be liable for the losses of the other party. The party affected by the event of force majeure listed above shall immediately notify the other party in writing of the occurrence of that event, and shall within 15 days thereafter provide the other party with the details of the event as well as the documentary evidences explaining the reasons for its failure in performing this Agreement in whole or in part or its delay in performing this Agreement. Depending on the effect of the event upon the performance of this Agreement, both parties shall negotiate whether or not to continue to perform this Agreement or terminate this Agreement.

 

8.2           Neither Party A or Party B shall be liable to the other party for the system failure of operator, telecom channel blocking, hacker attack or illegal invasion, computer, virus infection or outbreak, and hardware and mobile phone game failures that are unavoidable after the same maintenance is made, as well as the system operation interruption, failure, information transmission error, omission or other problem arising from the interruption of power supply or other public equipment.

 

8.3           If games cannot be provided or cooperation stops or otherwise as a result of operator’s adjustment or act, Party B may unilaterally terminate the agreement with Party A. Party B shall not be deemed as breach of this Agreement and is not required to bear any liability for such termination.

 

8.4           Before signing this Agreement, Party A shall perform the compatibility test on the samples of mobile phone games as provided by Party B. If such test is not performed, Party A shall bear the consequences arising from the possible incompatibility. Party B guarantees that the product for installation provided by it is fully consistent with the tested product (excluding package and carrier).

 

9.  Miscellaneous

 

9.1           This Agreement constitutes the complete agreement between Party A and Party B with respect to the subject matter of this Agreement and supersedes all previous oral and written agreements, contracts or other forms of communications existing between the parties with respect to such subject matter, including the “Cooperation Agreement for Mobile Phone Game Product Preinstalling Technology (Profit Sharing Mode)” dated June 1, 2010 between the parties, with the exception of the requirement that the confidentiality arrangement between the parties and other express provisions shall not be superseded by this Agreement.

 

9.2           In case of any matter not mentioned herein, both parties may enter into a supplementary agreement or annex to make supplements, descriptions and explanations in respect of the relevant issues herein. Within the cooperation term, both parties may modify the terms of this Agreement in writing after reaching consensus through negotiations.

 

9.3           Any dispute arising from the formation, interpretation, performance and implementation of this Agreement or any breach hereunder may be resolved by both parties through consultation. If such dispute cannot be resolved through consultation, it shall be submitted to

 

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the court in the place where Party B is domiciled for litigation.

 

9.4           This Agreement shall become effective on the date when it is signed by the legal representatives or authorized representatives of both parties and affixed with their respective company seals.

 

9.4           This Agreement is executed in two originals, with each party hereto retaining one original, and both originals shall have the same legal effect.

 

 

	
Party A: Shenzhen Ouyinhua Information Consulting   Co., Ltd.
    	
 
    	
Party B: Huiyou Digital (Shenzhen) Ltd.
    
	
 
    	
 
    	
 
    
	
(Signature &   seal): [Seal of Shenzhen Ouyinhua
    	
 
    	
(Signature &   seal): [Chop of Huiyou Digital
    
	
 
    	
 
    	
 
    
	
Information Consulting Co., Ltd. is affixed]
    	
 
    	
(Shenzhen) Ltd. is affixed]
    
	
 
    	
 
    	
 
    
	
Legal   representative or authorized
    	
 
    	
Legal   representative or authorized
    
	
 
    	
 
    	
 
    
	
representative:
    	
/s/ Tian Jian
    	
 
    	
representative:
    	
/s/
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:   August 23, 2011
    	
 
    	
Date:
    

 

9Exhibit 10.34

 

English Translation

 

Cooperation Agreement

 

This Cooperation Agreement (“this Agreement”) is made on August 22, 2011

 

BY AND BETWEEN:

 

	
Party A:
    	
 
    	
Huiyou Digital (Shenzhen) Ltd.
    
	
Address:
    	
 
    	
818#,   Block B, Zhenye Building, No. 2014 Bao’an South Road, Luohu District,
   Shenzhen
    
	
Telephone
   No.:
    	
 
    	
0755-82043991
    
	
Contact
   Person:
    	
 
    	
Xiao   Jian
    
	
 
    	
 
    	
 
    
	
Party B:
    	
 
    	
Guangzhou Yingzheng Information Technology Co., Ltd.
    
	
Address:
    	
 
    	
15/F,   Block A, Huajian Building, No. 233, Tianfu Road, Tianhe District,   Guangzhou
    
	
Telephone
   No.:
    	
 
    	
020-85643431
    
	
Contact
   Person:
    	
 
    	
Liu   Xieshu
    

 

Party A and Party B are hereinafter, collectively, referred to as the “Parties” and, individually, a “Party”.

 

WHEREAS:

 

1.                          Party A is a limited liability company established and validly existing in Shenzhen.  It has plenty of software copyrights and mobile games products, as well as marketing channels and resources for mobile games products.

 

2.                          Party B is a limited liability company established and validly existing in Guangzhou.  It specializes in the planning, development and operation of mobile value-added business, and the provision of other wireless value-added businesses and solutions that combine online games and wireless value-added service together.  Party B has extensive experience and capability in the above sectors and possess all licenses and permits required for the operation of the aforesaid business activities.

 

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3.                          Party A intends to grant a license to Party B for its use of Party A’s software copyrights, and authorizes Party B to operate any mobile online games product developed and owned by Party A that contains or is based on the software copyrights described above, and Party B intends to obtain the license and authorization referred to above.

 

4.                          Party B intends to authorize Party A as its agent for the marketing of Party A’s mobile online games products operated by it, and Party A intends to accept the authorization mentioned above.

 

NOW, THEREFORE, in accordance with the Contract Law of the People’s Republic of China and the relevant laws and regulations and based on the principles of equality, voluntariness and mutual benefits, Party A and Party B have reached the following agreement in respect of their cooperation in the field of mobile games after friendly consultation:

 

1.                          License for Software Copyrights

 

1.1                   Party A currently has software copyrights for a series of mobile games products, including the software copyrights registered and not registered with the National Copyright Administration of the People’s Republic of China, and will continue to develop software copyrights for other mobile games products (collectively referred to as the “Subject Software Copyrights”).

 

1.2                   Party A has currently developed or will develop a series of mobile online games products based on or containing the Subject Software Copyrights (collectively referred to as the “Subject Games Products”).  The Subject Games Products are or will be the property of Party A.

 

1.3                   Party A hereby grants a non-exclusive and non-transferable license to Party B for its use of the Subject Software Copyrights within the territory of the People’s Republic of China (hereinafter referred to as “China” or the “PRC” and, only for the purpose of this Agreement, which means the Mainland China and excludes the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan) during the term hereof for the purposes expressly provided in this Agreement, and Party B hereby accepts the license granted by Party A as described above.

 

1.4                   Party B shall pay to Party A license fee for the license granted by Party A in connection with the use of the Subject Software Copyrights (hereinafter referred to as the “License Fee”).

 

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1.5                   Party B shall not sub-license or re-license the Subject Software Copyrights to any third parties without the prior written consent of Party A.

 

1.6                   Party A hereby authorizes Party B to distribute and operate the Subject Games Products within the territory of China during the term hereof and to obtain corresponding incomes in relation thereto, and such authorization is non-exclusive and non-transferable in nature.  Party B hereby accepts the above authorization given by Party A.  Party B shall operate the Subject Games Products on its own, and shall not authorize or entrust any third parties to distribute or operate the Subject Games Products without the prior written consent of Party A.  During the term hereof, Party B shall maintain any Subject Games Product operated by it.

 

1.7                   Party B may use the Subject Software Copyrights licensed by Party A only for the following purposes: To distribute and operate the Subject Games Products and to obtain corresponding incomes in relation thereto in accordance with Article 1.6 of this Agreement and pursuant to the authorization of Party A.

 

1.8                   If, during the term hereof, Party A modifies or upgrades the Subject Software Copyrights, or develops new software copyrights based on the Subject Software Copyrights, such modifications, upgrades or new software copyrights shall be the Subject Software Copyrights hereunder, and shall be granted by Party A to Party B for use on the terms and conditions hereof.

 

1.9                   Party A shall provide Party B with a client terminal program package for the Subject Games Products and related information in order for Party B to use the Subject Software Copyrights and to develop and operate the Subject Games Products pursuant to the license granted by Party A.

 

1.10            Party A shall guarantee the legality of the Subject Software Copyrights and the Subject Games Products.  If Party B discovers that any Subject Software Copyright or Subject Games Product is in breach of laws, improper or contains inappropriate information, it shall notify Party A.  Upon receipt of the notice from Party B, Party A shall communicate and negotiate with Party B immediately, and shall make amendments to the relevant Subject Software Copyrights or Subject Games Products according to the solution unanimously agreed with Party B.

 

1.11            Party A shall guarantee that the Subject Software Copyright and the Subject Games Products do not infringe the rights of any third parties.

 

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1.12            Party A shall guarantee that there is no quality problem with the program of the Subject Games Products, nor is there any virus, trojan horse, backdoor, trap, worm, time bomb, or any other program that destroys, obtains or divulges system data or personal information, nor is there any malicious code, and Party A will not execute any operation unrelated to games themselves without the consent of game players.  If there is any quality problem or any malicious program or issue described above in the Subject Games Products, Party A shall be responsible for making corrections to mistakes or providing programs for upgrading so as to guarantee the completeness and correctness of the Subject Games Products and the successful operation of Party B.

 

2.                          Marketing

 

2.1                   In order to fully utilize the expertise, resources and strengths of the Parties, and to optimize their cooperation incomes, Party B hereby authorizes Party A as its marketing agent to market and promote any Subject Games Product distributed and operated by Party B to the extent as permitted by the laws of China, and Party A hereby accepts the authorization of Party B as described above.

 

2.2                   Party B shall pay to Party A service fee in respect of the marketing service provided by Party A under Article 2.1 hereof (hereinafter referred to as the “Service Fee”).  All costs arising from or in connection with the conduct of marketing works as required by this Agreement shall be solely borne by Party A.

 

2.3                   Party A shall make its best efforts to market and promote the Subject Games Products through various channels and resources to the extent as permitted by the laws of China, and shall use its best endeavor to obtain from service providers an income sharing proposal for the operation of the Subject Games Products that is favorable to the cooperation of the Parties as much as possible.  Party A may enter into a cooperation arrangement with service providers operating the Subject Games Products so as to receive its share of incomes from such service providers and to pay to Party B all the amounts remaining after deduction of the License Fee and Service Fee to which it shall be entitled hereunder.

 

2.4                   Party B shall be responsible for making a specific logo for the client terminal of the Subject Games Products by technical means to serve as the basis for determining the cooperation incomes of the Parties hereunder so as to protect the interests of the Parties in their cooperation.

 

2.5                   To commence the marketing works of the Subject Games Products in a more efficient manner,

 

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Party B shall furnish to Party A any data that is relevant to the operation of the Subject Games Products by Party B if Party A so requires.

 

3.                          Settlement of Cooperation Incomes

 

3.1                   The Parties agree that, based on their cooperation mode hereunder, the total information fee arising from the operation of the Subject Games Products by Party B, which is the total amount of information fee actually received from subscribers of the Subject Games Products through operators, less the respective shares of incomes of operators and service providers to be deducted by service providers pursuant to their cooperation arrangement with Party A, (being the amount to be paid by the service providers to Party A), shall be the incomes of the Parties arising from their cooperation hereunder (hereinafter referred to as the “Cooperation Incomes”).

 

3.2                   Upon receipt of the Cooperation Incomes from service providers, Party A shall deduct and withhold from the Cooperation Incomes such portion that is equivalent to the License Fee (being 70% of the Cooperation Incomes) and the Service Fee (being 20% of the Cooperation Incomes) to which it shall be entitled hereunder (representing an aggregate of 90% of the Cooperation Incomes), and the remaining amount shall be the incomes of Party B for the operation of the Subject Games Products pursuant to the requirements of this Agreement (hereinafter referred to as “Party B’s Operating Incomes”).  Party A shall pay all of Party B’s Operating Incomes to Party B.  The Parties agree that the actual payment of the License Fee and the Service Fee may be ultimately determined by Party B through separate consultation with Party A according to the development of Party A.

 

3.3                   The Parties agree that Party A shall settle Party B’s Operating Incomes with Party B based on the cycle which adopts a calendar year as an unit.  Party A shall, within 30 days after the close of each year, settle Party B’s Operating Incomes as accumulated for that year and credit them to the account of Party B as stated below or any other accounts notified by Party B from time to time:

 

	
Name   of the bank:
    	
 
    	
Guangzhou   Rural Commercial Bank co., Ltd., Huajian Sub-branch
    
	
Account   name:
    	
 
    	
Guangzhou   Yingzheng Information Technology Co., Ltd.
    
	
Account   number:
    	
 
    	
936612001000000766
    

 

4.                          Intellectual Property Right and Confidentiality Clause

 

4.1                   Party A shall have the sole and exclusive rights and interests in all intellectual property rights

 

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of the Subject Software Copyrights and the Subject Games Products.

 

4.2                   The Parties acknowledge and confirm that any oral or written information exchanged between them in respect of related agreements shall be confidential information.  The Parties shall keep all such information confidential, and shall not disclose any relevant information to any third parties without the written consent of the other Party, except for the following: (a) the information that are or will be known to the public (provided that they are not disclosed to the public without authorization and in violation of this Agreement by the information receiving party); (b) the information required to be disclosed by applicable laws, or the rules or regulations of securities exchanges; or (c) the information required to be disclosed by a Party to its legal or financial advisors with respect to the transactions mentioned herein, for which such legal or financial advisors shall also comply with the confidentiality obligation as similar as that described in this Article.  Any divulgence of confidential information by the employees of either Party or any organization engaged by it shall be deemed as the divulgence of confidential information by such Party, and such Party shall be liable for the breach pursuant to this Agreement.

 

4.3                   The Parties agree that this Article shall survive irrespective of whether this Agreement is modified, discharged or terminated.

 

5.                          Representations and Warranties

 

5.1                   Party A represents and warrants as follows:

 

(1)                      Party A is a limited liability company duly incorporated and validly existing under the laws of China.

 

(2)                      The execution and performance by Party A of this Agreement are within its corporate power and business scope; have been duly authorized by all necessary corporate actions, and have been consented and approved by any third parties (if any) and the relevant governmental departments; and do not contravene any law and other restrictions binding on or affecting it.

 

(3)                      This Agreement, once duly executed, constitutes the legal, valid and binding obligation of Party A and is enforceable against it in accordance with the terms hereof.

 

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5.2                   Party B represents and warrants as follows:

 

(1)                      Party B is a limited liability company duly incorporated and validly existing under the laws of China, and is approved by the relevant PRC departments to engage in (i) the business operation of online games, (ii) online publication business, and (iii) value-added service business.

 

(2)                      The execution and performance by Party B of this Agreement are within its corporate power and business scope; have been duly authorized by all necessary corporate actions, and have been consented and approved by any third parties (if any) and the relevant governmental departments; and do not contravene any law and other restrictions binding on or affecting it.

 

(3)                      This Agreement, once duly executed, constitutes the legal, valid and binding obligation of Party B and is enforceable against it in accordance with the terms hereof.

 

6.                          Effectiveness and Term

 

6.1                   This Agreement shall be signed and become effectiveness as of the date first above written.  Unless early terminated by this Agreement or any other agreements of the Parties, this Agreement shall have a term of five years.  Nevertheless, Party A and Party B shall review the content of this Agreement every twelve months from the execution hereof so as to decide whether any amendment and supplement is required to be made to this Agreement based on the situation at that time.

 

6.2                   Prior to its expiry, this Agreement may be extended with the written confirmation of the Parties.

 

7.                          Termination

 

7.1                   This Agreement shall be terminated on its expiry date unless renewed pursuant to its terms.

 

7.2                   During the term hereof, no Party shall terminate this Agreement unilaterally prior to its expiry date, except for the circumstance where a Party has material fault or fraudulent act against the other Party.

 

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7.3                   Upon termination hereof, the rights and obligations of the Parties under Articles 4, 5, 8 and 9 will survive.

 

8.                          Governing Law and Dispute Resolution

 

8.1                   The formation of this Agreement, its validity, interpretation, performance, amendment and termination, as well as dispute resolution shall be governed by the laws of China.

 

8.2                   Any disputes arising from the interpretation and performance of this Agreement shall be first resolved by the Parties hereto through friendly consultation.  If a dispute cannot be resolved within 30 days after a Party serves a written notice to the other Party requesting for resolution of the dispute through consultation, either Party may refer such dispute to the China International Economics and Foreign Trade Arbitration Commission for arbitration in accordance with its arbitration rules then in effect.  The arbitration shall be conducted in Beijing, and the language to be used in arbitration shall be Chinese.  The arbitral award shall be final and binding upon the Parties.

 

8.3                   When any dispute arises from the interpretation and performance of this Agreement or is in arbitration, the Parties hereto shall continue to exercise their other rights hereunder and perform their other obligations hereunder, save for those matters in dispute.

 

9.                          Liabilities for Breach

 

9.1                   Any Party who violates the requirements of this Agreement shall compensate the non-defaulting Party for any losses suffered by it.

 

9.2                   A waiver by the non-defaulting Party with respect to a breach by the defaulting Party shall be effective unless it is made in writing.  Failure or delay on the part of the non-defaulting Party to exercise any of its rights or reliefs hereunder shall not operate as a waiver thereof by such non-defaulting Party; nor shall any partial exercise of any right or relief preclude its exercise of any other right or relief.

 

9.3                   The validity of this Article shall not be affected by the discharge or termination of this Agreement.

 

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10.                   Assignment

 

Unless with the prior written consent of the other Party, neither Party shall assign its rights and obligations hereunder to any third parties.

 

11.                   Severability

 

If any provision or provisions of this Agreement is held to be invalid, illegal or unenforceable in any respect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or impaired in any respect.  The Parties shall, through amicable negotiations, strive to replace those invalid, illegal or unenforceable provision or provisions with valid provision or provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such valid provision or provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provision or provisions.

 

12.                   Amendment and Supplement

 

The Parties may make amendments and supplements to this Agreement by written agreement.  Any amendment contracts and supplemental contracts hereto duly signed by the Parties shall be an integral part of this Agreement, and shall have the same legal effect as this Agreement.

 

13.                   Language and Counterpart

 

This Agreement is executed in Chinese in two originals.  Party A and Party B shall each keep one original and each of them shall have the same legal effect.

 

(The remainder of this page is intentionally left blank and the next page is signature page.)

 

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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their respective authorized representatives on the date first above written.

 

 

Party A: Huiyou Digital (Shenzhen) Ltd.

 

 

	
/s/
    	
 
    
	
Name:   [Xiao Jian]
    	
 
    
	
Position:   [General Manager]
    	
 
    
	
Legal   Representative
    	
 
    

 

 

Party B: Guangzhou Yingzheng Information Technology Co., Ltd.

 

 

	
/s/
    	
 
    
	
Name:   [Liu Xieshu]
    	
 
    
	
Position:   [Operation Director]
    	
 
    
	
Legal   Representative
    	
 
    

 

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