Document:

EX-4.23

 Exhibit 4.23 

Execution Version 

CONVERTIBLE NOTE AND WARRANT PURCHASE AGREEMENT 

By and Among 
 THE9 LIMITED, 

THE SECURITY PROVIDERS LISTED ON 

SCHEDULE 1 ATTACHED HERETO 
 And

 SPLENDID DAYS LIMITED 
 Dated
as of November 24, 2015 

 TABLE OF CONTENTS 

 

							
	1.	  	 Definitions and Interpretation
	  	 	1	  
			
	2.	  	 Purchase and Sale of the Notes and Warrants
	  	 	12	  
			
	3.	  	 Closing and Closing Deliveries
	  	 	12	  
			
	4.	  	 Representations and Warranties of the Warrantors
	  	 	14	  
			
	5.	  	 Representations and Warranties of the Investor
	  	 	22	  
			
	6.	  	 Conditions to the Investor’s Obligations at Closing
	  	 	24	  
			
	7.	  	 Conditions to the Company’s Obligations at Closing
	  	 	26	  
			
	8.	  	 Covenants
	  	 	26	  
			
	9.	  	 LTV Adjustment, Release of Security and Change of Pledgee or Mortgagee
	  	 	35	  
			
	10.	  	 Indemnification
	  	 	36	  
			
	11.	  	 Termination
	  	 	37	  
			
	12.	  	 Miscellaneous
	  	 	38	  

  

	
	 Schedule 1 - Security Providers

	
	 Schedule 2 - List of Mortgaged Properties

	
	 Schedule 3 - Disclosure Schedule

	
	 Exhibit A - Form of the Notes

	
	 Exhibit B - Form of Tranche I Warrants

	
	 Exhibit C - Form of Tranche A Warrants, Tranche B Warrants and Tranche C Warrants

	
	 Exhibit D - Form of Equity Pledge Agreement

	
	 Exhibit E - Form of License Agreement

	
	 Exhibit F - Form of Joinder Agreement

  
 -i- 

 CONVERTIBLE NOTE AND WARRANT PURCHASE AGREEMENT 

This CONVERTIBLE NOTE AND WARRANT PURCHASE AGREEMENT is entered into as of
            , 2015, by and among The9 Limited, an exempted company with limited liability incorporated under the Laws of the Cayman Islands (the “Company”), the
Security Providers listed in Schedule 1 attached hereto (collectively, the “Security Providers”) and Splendid Days Limited, a company with limited liability incorporated under the Laws of the British Virgin Islands (the
“Investor”). 
 RECITALS 

WHEREAS, subject to the terms and conditions set forth in this Agreement, the Company desires to issue and sell, and the Investor desires to
purchase, Tranche A Convertible Notes, Tranche B Convertible Notes and Tranche C Convertible Notes (each as defined below) in the aggregate principal amount of US$40,050,000 in the forms attached hereto as Exhibit A (together, the
“Notes”); 
 WHEREAS, subject to the terms and conditions set forth in this Agreement, the Company desires to issue and
sell, and the Investor desires to purchase, Tranche I Warrants (as defined below) in the aggregate principal amount of US$5,000,000 in the form attached hereto as Exhibit B; 

WHEREAS, the Company desires to issue, and the Investor desires to be issued, Tranche A Warrants, Tranche B Warrants and Tranche C Warrants
(each as defined below) in the aggregate principal amount of US$4,950,000, in the form attached hereto as Exhibit C; 
 WHEREAS, the
Company’s obligations under the Notes and the Tranche A Warrants, Tranche B Warrants and Tranche C Warrants, including the due and punctual payment of all amounts payable under the Notes, will be secured pursuant to the Security Documents (as
defined below); and 
 WHEREAS, in connection with such purchase and sale, the Company, the Security Providers and the Investor desire to
make certain representations and warranties and enter into certain agreements. 
 NOW THEREFORE, in consideration of the foregoing and the
representations, warranties and agreements set forth herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound by this Agreement, the Parties agree as follows:

 AGREEMENT 
 1. Definitions and
Interpretation 
 1.1 Definitions. As used in this Agreement, the following terms shall have the respective meanings set
forth in this Section 1: 
 “Action” shall mean any charge, claim, action, complaint, petition,
inquiry, investigation, appeal, suit, litigation, grievance or other proceeding, whether administrative, civil, regulatory or criminal, whether at law or in equity, or otherwise under any applicable Law, and whether or not before any arbitrator or
Governmental Authority. 
 “Additional Registration Statements” shall have the meaning set forth in Section 8.16(a).

  
 1 

 “ADS” shall mean an American Depositary Shares of the Company issued pursuant to
the Deposit Agreement or any applicable restricted American Depositary Share letter Agreement, representing one (1) Ordinary Share as of the date of this Agreement, and deposited with the Depositary or its designee, including an American Depositary
Share that is so issued with restricted legends. 
 “Affiliate” shall mean, with respect to any specified Person, any other
Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person. For purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, shall mean the possession, directly or indirectly or as trustee, personal representative or executor, of the power to
direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by Contract or otherwise. 

“Agreement” shall mean this Convertible Note and Warrant Purchase Agreement, together with all exhibits, schedules, and other
attachments thereto. 
 “Applicable Threshold” shall mean US$20,000,000 (in the case of the Potential Adjustment Date that
is 18 calendar months after the Closing Date), US$10,000,000 (in the case of the Potential Adjustment Date that is 24 calendar months after the Closing Date) and US$5,000,000 (in the case of the Potential Adjustment Date that is 30 calendar months
after the Closing Date). 
 “Board” shall mean the board of directors of the Company. 

“Breach” shall have the meaning set forth in Section 10.2. 

“Business Day” shall mean any day that is not a Saturday, a Sunday, legal holiday or other day on which banks are required or
authorized by Law to be closed in the PRC, New York or Hong Kong. 
 “Closing” shall have the meaning set forth in
Section 3.1. 
 “Closing Date” shall have the meaning set forth in Section 3.1. 

“Code” shall mean the Internal Revenue Code of 1986. 

“Commission Guidance” shall have the meaning set forth in Section 8.16(a). 

“Company” shall have the meaning set forth in the preamble of this Agreement. 

“Company IP” shall have the meaning set forth in Section 4.19(a). 

“Company Owned IP” shall mean all Intellectual Property owned by the Group Companies. 

“Company Registered IP” shall mean all Intellectual Property for which registrations are owned by or held in the name of, or
for which applications have been made in the name of, any Group Company. 
 “Company’s Incentive Plan” shall mean the
Third Amended and Restated 2004 Stock Option Plan as approved and adopted by the Board of the Company on November 13, 2015. 

“Conditions” shall mean the respective terms and conditions on which the Notes or the Warrants shall be issued by the
Company, as attached to the relevant Note Certificate or Warrant Certificate. 

  
 2 

 “Constitutional Documents” shall mean, with respect to a particular legal
entity, the articles of incorporation, certificate of incorporation, formation or registration (including, if applicable, certificates of change of name), memorandum of association, articles of association, bylaws, articles of organization, limited
liability company agreement, trust deed, trust instrument, operating agreement, joint venture agreement, business license, or similar or other constitutive, governing, or charter documents, or equivalent documents, of such entity. 

“Contract” shall mean, as to any Person, a contract, agreement, indenture, note, bond, loan, instrument, lease, mortgage,
franchise, license, commitment, purchase order, and other legally binding arrangement, whether written or oral. 
 “Deposit
Agreement” shall mean the deposit agreement dated as of December 20, 2004, by and among the Company, the Depositary and the holders of the ADSs issued thereunder or, if amended or supplemented as provided therein, as so amended and
supplemented. 
 “Depositary” shall mean The Bank of New York Mellon. 

“Disclosure Schedule” shall have the meaning set forth in Section 4. 

“EDGAR” shall have the meaning set forth in Section 8.7. 

“Effective Period” shall have the meaning set forth in Section 8.16(a). 

“Encumbrance” shall mean any security interests, mortgages, liens, pledges, charges, reservations, restrictions, rights of
way, options, rights of first refusal, community property interests, equitable interests, conditional sale or other title retention agreements, any agreement to provide any of the foregoing and all other encumbrances, whether or not relating to the
extension of credit or the borrowing of money, whether imposed by contract, Law, equity or otherwise. 
 “Equity Pledge
Agreements” shall mean (i) the first priority equity pledge agreement to be entered into by and among the Investor, China The9 Interactive Limited and WFOE 1 pursuant to which China The9 Interactive Limited pledges all its equity interest
in WFOE 1 to the Investor; and (ii) the first priority equity pledge agreement to be entered into by and among the Investor, GameNow.net (Hong Kong) Limited and WFOE 2 pursuant to which GameNow.net (Hong Kong) Limited pledges all its equity interest
in WFOE 2 to the Investor, each in the form attached hereto as Exhibit D. 
 “Equity Securities” shall mean, with
respect to a Person, any and all shares of capital stock, membership interests, units, profits interests, ownership interests, equity interests, registered capital, and other equity securities of such Person, and any right, warrant, option, call,
commitment, conversion privilege, preemptive right or other right to acquire any of the foregoing, or security convertible into, exchangeable or exercisable for any of the foregoing, or any Contract providing for the acquisition of any of the
foregoing. 
 “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated by the SEC thereunder. 
 “Filing Deadline” shall have the meaning set forth in Section 8.16(a). 

“Final Valuation” shall have the meaning set forth in Section 9.1. 

  
 3 

 “Financial Statements” shall have the meaning set forth in Section
4.10(a). 
 “GAAP” shall mean United States generally accepted accounting principles, as in effect from time to time,
applied on a consistent basis. 
 “Governmental Authority” shall mean any government of any nation, federation, province or
state or any other political subdivision thereof, any entity, authority or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any government authority, agency,
department, board, commission or instrumentality of the PRC or any other country, or any political subdivision thereof, any court, tribunal or arbitrator, and any self-regulatory organization. 

“Governmental Order” shall mean any order, ruling, decision, verdict, decree, writ, subpoena, mandate, command, directive,
consent, approval, award, judgment, injunction or other similar determination or finding by, before or under the supervision of any Governmental Authority. 

“Group” shall mean, collectively, the Company and its Subsidiaries. 

“Group Company” shall mean a member of the Group. 

“HKIAC” shall have the meaning set forth in Section 12.2(a). 

“Holder” shall mean any Person who holds any of the Notes, Warrants or Registrable Securities or any assignee of record of
such Registrable Securities. 
 “Hong Kong” shall mean the Hong Kong Special Administrative Region of the PRC. 

“Indebtedness” shall have the meaning assigned to such term in the Notes. 

“Indemnified Party” shall have the meaning set forth in Section 10.2. 

“Indemnifying Parties” shall have the meaning set forth in Section 10.2. 

“Information” shall have the meaning set forth in Section 8.6. 

“Intellectual Property” shall mean any and all (i) patents and patent applications and reissues, renewals, reexaminations,
continuations, continuations-in-part, divisions, substitutions, supplementary protection certificates and patent term extensions thereof, (ii) inventions (whether patentable or not), discoveries, improvements, concepts, innovations and industrial
models, (iii) registered and unregistered copyrights, author’s rights, data rights and works of authorship (including artwork, software, computer programs, files, records and data, and related documentation), (iv) technical information,
know-how, trade secrets, drawings, designs, design protocols, specifications, proprietary data, customer lists, databases, proprietary processes, technology, formulae, and algorithms and other intellectual property, (v) trade names, trade dress,
trademarks, domain names, service marks, logos, business names, URLs, web sites, web pages and any part thereof, and registrations and applications therefor, the goodwill symbolized or represented by the foregoing. 

“Investor” shall have the meaning set forth in the preamble of this Agreement. 

  
 4 

 “Law” or “Laws” shall mean any and all provisions of any
applicable constitution, treaty, statute, law, regulation, ordinance, code, rule, or rule of common law, any governmental approval, concession, grant, franchise, license, agreement, directive, requirement, or other governmental restriction or any
similar form of decision of, or determination by, or any interpretation or administration of any of the foregoing by, any Governmental Authority, in each case as amended, and any and all applicable Governmental Orders. 

“Lease Agreements” shall have the meaning set forth in Section 4.17(b). 

“Leased Real Property” shall mean all real property leased, subleased, licensed, or otherwise occupied by the Company or any
Subsidiary of the Company. 
 “Liability” shall mean any direct or indirect liability, indebtedness, claim, loss, damage,
deficiency, obligation or responsibility, fixed or unfixed, liquidated or unliquidated, secured or unsecured, accrued, absolute or contingent. 

“License Agreement” shall mean the exclusive license and distribution agreement entered into on and around November 24, 2015
by and among Smilegate, Oriental Shiny and Beijing Zhiao Network Technology Co., Ltd.

 in the form attached hereto as Exhibit E. 
 “Loan Agreement” shall mean the
entrustment loan agreement entered into by and among WFOE 1, WFOE 2, the Operating Company and an onshore bank designated by Shanghai Shengye pursuant to which the bank extends an entrustment loan in the principal amount of the RMB equivalent of
US$4,950,000 (the exchange rate of USD to RMB shall be based on the PBOC Exchange Rate) to WFOE 1, WFOE 2 and the Operating Company or to the Operating Company. 

“Long Stop Date” shall mean December 18, 2015. 

“Losses” shall have the meaning set forth in Section 10.2. 

“Material Adverse Effect” shall mean any event, circumstance, development, change or effect that, individually or in the
aggregate with any other events, circumstances, developments, changes and effects, results or could reasonably be expected to result in a material adverse effect on, or change in: 

(i)    the legality, validity or enforceability of any of the Transaction Documents; 

(ii)    the business, operations, assets, liabilities, property, condition (financial or otherwise) or prospects of the
Company, any other Warrantor, any Group Company or the Group; 
 (iii)    the ability of a Warrantor to perform its
obligations under any of the Transaction Documents; and 
 (iv)    the rights and remedies of the Investor under any of
the Transaction Documents. 
 “Material Contracts” shall have the meaning set forth in Section 4.18(a). 

“MOFCOM” shall mean the Ministry of Commerce of the PRC or its competent local counterparts. 

“Mortgaged Properties” shall have the meaning set forth in the definition of Onshore Mortgages. 

  
 5 

 “NASDAQ” shall mean The NASDAQ Global Market. 

“New Registration Statement” shall have the meaning set forth in Section 8.16(a). 

“Notes” shall have the meaning set forth in the recitals of this Agreement. 

“Note Certificates” shall mean the relevant note certificates in respect of the Tranche A Convertible Notes, Tranche B
Convertible Notes and Tranche C Convertible Notes in the form of Exhibit A attached hereto. 
 “Onshore Companies”
shall have the meaning set forth in Section 4.8(b). 
 “Onshore Mortgages” shall mean the property mortgage
agreement or agreements entered into by and among Shanghai Shengye or the entrustment bank, WFOE 1, WFOE 2 and the Operating Company pursuant to which WFOE 1, WFOE 2 and the Operating Company grant a first priority mortgage over all the properties
(comprising 50 units, a list of which is attached hereto as Schedule 2) located at No. 3 Building, No. 690 Bibo Road, Pudong New District, Shanghai, the PRC (the “Mortgaged Properties”) to Shanghai Shengye or the entrustment
bank. 
 “Operating Company” shall mean Shanghai The9 Information Technology Co., Ltd.

, a limited liability company incorporated under the Laws of the PRC, with its registered address at Room 201, No. 3 Building, No. 690 Bibo Road, Pudong New District, Shanghai, the PRC. 

“Ordinary Shares” shall mean the ordinary shares, par value US$0.01 per share, of the Company. 

“Oriental Shiny” shall mean Oriental Shiny Star Limited

, a limited liability company incorporated under the Laws of Hong Kong, with its registered address at Room 1502, 15/F, Harcourt House, 39 Gloucester Road, Wanchai, Hong Kong. 

“Outstanding Principal” shall mean the sum of (i) the aggregate principal amount of the then outstanding Notes at any time
after the Closing Date and (ii) the aggregate principal amount of the then outstanding Tranche A Warrants, Tranche B Warrants and Tranche C Warrants at any time after the Closing Date. 

“Owned Real Property” shall mean all real property and interests in real property (including real property in connection with
land use rights contracts or certificates and construction projects) owned by any Group Company (collectively, together with all buildings or other structures, improvements or fixtures thereon and all easements rights of way and other appurtenant
rights thereto). 
 “Parties” shall mean the Company, the Security Providers and the Investor and a
“Party” shall mean any of them. 
 “PBOC Exchange Rate” shall mean the mid-point daily exchange rate of
USD to RMB published by the People’s Bank of China one (1) Business Day before the drawdown date of the loan under the Loan Agreement. 

“Permit” shall mean any consent, approval, authorization, release, waiver, permit, grant, franchise, concession, agreement,
license, exemption or order of, registration or record filing, operating license, qualifications, ratification, certificate, declaration or filing with, or report or notice to, or other form of permission to engage in a specific activity issued by,
any Person, including any Governmental Authority. 

  
 6 

 “Person” shall mean an individual, corporation, partnership, limited
partnership, limited liability company, syndicate, person (including a “person” as defined in Section 13(d)(3) of the Exchange Act), trust, association or entity or government, political subdivision, agency or instrumentality of a
government. 
 “Potential Adjustment Date” shall mean each of (i) the date that is 18 calendar months after the Closing
Date; (ii) the date that is 24 calendar months after the Closing Date; and (iii) the date that is 30 calendar months after the Closing Date. 

“Prospectus” shall mean: (i) the prospectus included in any Registration Statement, as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments and supplements to the prospectus, including post-effective amendments
and all material incorporated by reference in such prospectus, and (ii) any “free writing prospectus” as defined in Rule 405. 

“PRC” or “China” shall mean the People’s Republic of China excluding, for the purposes of this
Agreement only, Hong Kong, the Macau Special Administrative Region and Taiwan. 
 “Purchase Price” shall mean
US$40,050,000. 
 “Registrable Securities” shall mean: (i) any and all Ordinary Shares that are issued by the Company upon
conversion of the Notes or exercise of the Warrants into the ADSs, (ii) any Ordinary Shares issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with
respect to, in exchange for or in replacement of, Ordinary Shares described in clause (i); and (iii) any ADSs issued in respect of any Ordinary Shares described in clauses (i) or (ii). Registrable Securities shall cease to be Registrable
Securities upon the earlier of (A) when all Registrable Securities proposed to be sold by the Holders may then be sold pursuant to Rule 144 without any restriction and (B) the date as of which a Registration Statement covering resale of such
Registrable Securities has been declared effective under the Securities Act by the SEC and such Registrable Securities have been disposed of pursuant to such effective Registration Statement. 

“Registration Statement” shall mean any registration statement of the Company filed under the Securities Act that covers the
resale of any of the Registrable Securities pursuant to the provisions of this Agreement, amendments and supplements to such Registration Statement, including post-effective amendments, and all exhibits and all materials incorporated by reference in
such Registration Statement. 
 “Reimbursable Expenses” shall have the meaning set forth in Section 8.21. 

“Remaining Mortgaged Properties” shall have the meaning set forth in Section 9.2. 

“Remaining Purchase Price” shall have the meaning set forth in Section 3.3. 

“Required Permits” shall have the meaning set forth in Section 4.16. 

“RMB” shall mean Renminbi, the legal currency of the PRC. 

  
 7 

 “Rule 144” shall mean Rule 144 promulgated under the Securities Act, as such
rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect as such rule. 

“Rule 405” shall mean Rule 405 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule. 
 “Rule
415” shall mean Rule 415 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule.

 “SAFE” shall mean the PRC State Administration of Foreign Exchange, the Chinese foreign exchange markets regulator, and
the body responsible for implementing and enforcing foreign exchange controls in the PRC. 
 “SAFE Circulars” shall mean
the SAFE Circular No. 37 on the Issuing of the Operational Rules Concerning Foreign Exchange Administration of Company Financings and Round-Tripping Investments via Overseas Special Purpose Companies by Residents in China

 as well as any applicable Laws in force from time to time which operate to restate, amend or repeal any of the aforesaid documents or any part thereof. 

“SAFE Registration Requirements” shall mean the PRC foreign exchange registration requirements pursuant to the SAFE Circulars
and their related implementing rules. 
 “SAIC” shall mean the State Administration for Industry and Commerce of the PRC or
its local counterparts. 
 “SAT” shall mean the State Administration of Taxation of the PRC or its local counterparts. 

“SEC” shall mean the U.S. Securities and Exchange Commission or any other U.S. federal agency then administering the
Securities Act or Exchange Act. 
 “SEC Filings” shall have the meaning set forth in Section 4.11. 

“Securities” shall have the meaning set forth in Section 5.4. 

“Securities Act” shall mean the U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated by the SEC
thereunder. 
 “Security Documents” shall mean the Equity Pledge Agreements and the Onshore Mortgages. 

“Security Providers” shall have the meaning set forth in the preamble of this Agreement. 

“Shanghai Shengye” shall mean Shanghai Shengye Equity Investment Fund Limited

, a company incorporated under the Laws of the PRC. 
 “Smilegate” shall mean Smilegate
Entertainment, Inc., a company incorporated under the Laws of the Republic of Korea, whose address is at 5F, Solidspace Building, 220 Pangyoyeok-ro, Bundang-gu, Seongnam-si, Gyeongi-do 463-400, Korea. 

  
 8 

 “Subsidiary” shall mean, with respect to any Person, (i) any corporation,
limited liability company, partnership, joint venture, trust or other legal entity of which such Person (either alone or through or together with any other Subsidiary), owns, directly or indirectly, more than fifty percent (50%) of the stock or
other equity (or profits or capital) interests or more than fifty percent (50%) of the ordinary voting power, the holders of which are generally entitled to vote for the election of the board of directors or other governing body of a non-corporate
Person, and (ii) any entity whose assets, or portions thereof, has been or should be consolidated with the net earnings of the Person and should be recorded on the books of the Person for financial reporting purposes in accordance with GAAP
including FIN 46R with respect to variable interest entities; for the avoidance of doubt, in the case of the Company, its Subsidiaries shall include the Operating Company and each Subsidiary of the Operating Company. 

“Tax” or “Taxes” shall mean (i) in the PRC: (a) any national, provincial, municipal, or local taxes,
charges, fees, levies, or other assessments, including all net income (including enterprise income tax and individual income withholding tax), turnover (including value-added tax, business tax, and consumption tax), resource (including urban and
township land use tax), special purpose (including land value-added tax, urban maintenance and construction tax, and additional education fees), property (including urban real estate tax and land use fees), documentation (including stamp duty and
deed tax), filing, recording, social insurance (including pension, medical, unemployment, housing, and other social insurance withholding), tariffs (including import duty and import value-added tax), and estimated and provisional taxes, charges,
fees, levies, or other assessments, imposed in all cases by a Governmental Authority, (b) all interest, penalties (administrative, civil or criminal), or additional amounts imposed by any Governmental Authority in connection with any item described
in clause (a) above, and (c) any form of transferee liability imposed by any Governmental Authority in connection with any item described in clauses (a) and (b) above and (ii) in any jurisdiction other than the PRC: all similar liabilities as
described in clause (i)(a) and (i)(b) above. 
 “Tax Returns” shall mean any return, report or statement showing Taxes,
used to pay Taxes, or required to be filed with respect to any Tax (including any elections, declarations, schedules or attachments thereto, and any amendment thereof), including any information return, claim for refund, amended return or
declaration of estimated or provisional Tax. 
 “Trading Day” shall mean a day on which any trading market on which the
ADSs are listed or quoted as open for trading. 
 “Tranche A Convertible Notes” shall mean the 12% coupon senior secured
convertible notes in the principal amount of US$22,250,000 to be issued by the Company to the Investor on the Closing Date in the form attached hereto as Exhibit A. 

“Tranche A Warrants” shall mean the warrants and any replacement warrants in the face value of US$2,750,000 to be issued by
the Company to the Investor on the Closing Date in the form attached hereto as Exhibit C. 
 “Tranche B Convertible
Notes” shall mean the 12% coupon senior secured convertible notes in the principal amount of US$13,350,000 to be issued by the Company to the Investor on the Closing Date in the form attached hereto as Exhibit A. 

  
 9 

 “Tranche B Warrants” shall mean the warrants and any replacement warrants in the
face value of US$1,650,000 to be issued by the Company to the Investor on the Closing Date in the form attached hereto as Exhibit C. 

“Tranche C Convertible Notes” shall mean the 12% coupon senior secured convertible notes in the principal amount of
US$4,450,000 to be issued by the Company to the Investor on the Closing Date in the form attached hereto as Exhibit A. 

“Tranche C Warrants” shall mean the warrants and any replacement warrants in the face value of US$550,000 to be issued by the
Company to the Investor on the Closing Date in the form attached hereto as Exhibit C. 
 “Tranche I Warrants” shall
mean the warrants and any replacement warrants in the face value of US$5,000,000 to be issued by the Company to the Investor on the Closing Date in the form attached hereto as Exhibit B. 

“Transaction Documents” shall mean (i) this Agreement, (ii) the Notes and the Note Certificates in the form attached hereto
as Exhibit A; (iii) the Warrants and the Warrant Certificates in the form attached hereto as Exhibit B and Exhibit C; (iv) the Security Documents; (v) the Loan Agreement and (vi) any other agreement, certificate or other
document to be entered into or delivered pursuant to the terms of any such agreements. 
 “Treasury Regulations” shall mean
the United States Treasury Regulations promulgated pursuant to the Code. 
 “US$” or “USD” shall mean U.S.
dollars, the lawful currency of the United States of the America. 
 “Valuation Process Notice” shall have the meaning set
forth in Section 9.1. 
 “VIE Agreements” shall mean all of the Contracts described under the caption
“Arrangements with Affiliated PRC Entities” of Item 7 of the Company’s most recently filed Annual Report on Form 20-F. 

“Violation” shall have the meaning set forth in Section 8.18(a). 

“Warrant” shall have the meaning set forth in the recitals of this Agreement. 

“Warrant Certificate” shall mean any warrant certificate in respect of the Tranche I Warrants, in the form of Exhibit
B attached hereto, and Tranche A Warrants, Tranche B Warrants and Tranche C Warrants, in the form of Exhibit C attached hereto. 

“Warrantors” shall mean collectively, the Company and the Security Providers and a “Warrantor” shall mean
any of them. 
 “WFOE 1” shall mean China The9 Interactive (Shanghai) Ltd.

, a limited liability company incorporated under the Laws of the PRC, with its registered address at Room 301, No. 3 Building, No. 690 Bibo Road, Pudong New District, Shanghai, the PRC. 

“WFOE 2” shall mean The9 Computer Technology Consulting (Shanghai) Co., Ltd.

, a limited liability company incorporated under the laws of the PRC), with its registered address at Room 103, No. 3 Building, No. 690 Bibo Road, Pudong New District, Shanghai, the PRC. 

  
 10 

 “6-K Filing” shall have the meaning set forth in Section 8.5. 

1.2 Interpretation. Unless the context otherwise requires: 

(a) Directly or Indirectly. The phrase “directly or indirectly” means directly, or indirectly through one or more
intermediate Persons or through contractual or other arrangements, and “direct or indirect” has the correlative meaning. 
 (b)
Gender and Number. All words (whether gender-specific or gender neutral) shall be deemed to include each of the masculine, feminine and neuter genders, and words importing the singular include the plural and vice versa. 

(c) Headings. Headings, titles and subtitles are included for convenience only and shall not affect the construction or interpretation
of any provision of this Agreement. 
 (d) Include not Limiting. “Include,” “including,”
“are inclusive of” and similar expressions are not expressions of limitation and shall be construed as if followed by the words “without limitation.” 

(e) References. A reference to any Section, Schedule or Exhibit is, unless otherwise specified, to such Section of, or Schedule or
Exhibit to this Agreement. The words “hereof,” “hereunder” and “hereto,” and words of like import, unless the context requires otherwise, refer to this Agreement as a whole and not to any particular Section hereof or
Schedule or Exhibit hereto. Any agreement, instrument or statute defined or referred to in this Agreement means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or
instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes or any rules or regulations promulgated under such statutes. All references in this Agreement to “dollars” or “$”
shall mean United States dollars. Any period of time hereunder ending on a day that is not a Business Day shall be extended to the next Business Day. The word “day”, unless otherwise indicated, shall be deemed to refer to a calendar day.

 (f) Drafting and Negotiation. Each of the Parties has participated in the drafting and negotiation of this Agreement. If an
ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if it is drafted by each of the parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of authorship of
any of the provisions of this Agreement. 
 (g) Knowledge. Where any statement is qualified by the expression “to a
Person’s knowledge, information and belief” or any similar expression, that statement shall, unless otherwise stated or context otherwise demands, be deemed to refer to such Person’s actual knowledge and the deemed knowledge of such
matters as such Person would have discovered, had such Person made reasonable enquiries and investigations of a Person in the position of such Person. In respect of the “knowledge of the Company”, the foregoing sentence shall be
interpreted by replacing the term “such Person” or other words of similar intent with “the Chief Executive Officer and Chief Financial Officer of the Company” mutatis mutandis. 

  
 11 

 (h) Writing. References to writing and written include any mode of reproducing words in a
legible and non-transitory form including emails and faxes. 
 (i) Language. This Agreement shall be made in the English language,
which language shall be controlling in all respects, and all versions hereof in any other language shall not be binding on the Parties. 
 2. Purchase
and Sale of the Notes and Warrants. Subject to the terms and conditions set forth in this Agreement, at the Closing, the Investor will purchase from the Company, and the Company will issue, sell and deliver to the Investor: 

2.1 Tranche A Convertible Notes in an aggregate principal amount of US$22,250,000, with an initial conversion price of US$2.60 per Ordinary
Share or US$2.60 per ADS, for a total aggregate purchase price of US$22,250,000, such amount to be paid in full, in cash to the Company at the Closing; 

2.2 Tranche B Convertible Notes in an aggregate principal amount of US$13,350,000, with an initial conversion price of US$5.20 per Ordinary
Share or US$5.20 per ADS, for a total aggregate purchase price of US13,350,000, such amount to be paid in full, in cash to the Company at the Closing; 

2.3 Tranche C Convertible Notes in an aggregate principal amount of US$4,450,000, with an initial conversion price of US$7.80 per Ordinary
Share or US$7.80 per ADS, for a total aggregate purchase price of US$4,450,000, such amount to be paid in full, in cash to the Company at the Closing; 

2.4 Tranche I Warrants in an aggregate principal amount of US$5,000,000, with an initial exercise price of US$1.50 per Ordinary Share or
US$1.50 per ADS; 
 2.5 Tranche A Warrants in an aggregate principal amount of US$2,750,000, with an initial exercise price of US$2.60 per
Ordinary Share or US$2.60 per ADS; 
 2.6 Tranche B Warrants in an aggregate principal amount of US$1,650,000, with an initial exercise
price of US$5.20 per Ordinary Share or US$5.20 per ADS; and 
 2.7 Tranche C Warrants in an aggregate principal amount of US$550,000, with
an initial exercise price of US$7.80 per Ordinary Share or US$7.80 per ADS. 
 3. Closing and Closing Deliveries 

3.1 Closing. The consummation of the purchase and sale of the Notes and the Warrants and the other transactions contemplated by
this Agreement (the “Closing”) shall, unless this Agreement is terminated pursuant to Section 11.2 and subject to fulfillment or waiver of each of the conditions set forth in Sections 6 and 7 (other
than those conditions that can be fulfilled only at the Closing), take place on the same date as the date on which Oriental Shiny pays the license fee to Smilegate pursuant to the License Agreement at the Hong Kong offices of Morrison & Foerster
at 10:00 a.m. Hong Kong time or at such other time and place as the Company and the Investor shall mutually agree (such date, the “Closing Date”). 

3.2 Closing Deliveries of the Company and the Security Providers. At the Closing, the Company and the Security Providers shall
deliver to the Investor: 
 (a) the relevant Note Certificate representing the principal of the Tranche A Convertible Notes being purchased
by the Investor; 

  
 12 

 (b) the relevant Note Certificate representing the principal of the Tranche B Convertible Notes
being purchased by the Investor; 
 (c) the relevant Note Certificate representing the principal of the Tranche C Convertible Notes being
purchased by the Investor; 
 (d) the Warrant Certificate representing the principal of the Tranche I Warrants being purchased by the
Investor; 
 (e) the Warrant Certificate representing the principal of the Tranche A Warrants being purchased by the Investor; 

(f) the Warrant Certificate representing the principal of the Tranche B Warrants being purchased by the Investor; 

(g) the Warrant Certificate representing the principal of the Tranche C Warrants being purchased by the Investor; 

(h) an incumbency certificate, in a form reasonably acceptable to the Investor, with respect to the officers executing documents or
instruments on behalf of the Company and each of the Security Providers, in each case, certified by a duly authorized director of the Company or such Security Provider, as applicable, to be true, complete and correct copies thereof; 

(i) a certificate, executed by a duly authorized director of the Board of the Company, dated as of the Closing Date, certifying that all the
conditions set forth in Section 6 have been fulfilled; 
 (j) a receipt for payment of the Remaining Purchase
Price; 
 (k) a copy of the register of noteholders of the Company as of the Closing evidencing the issuance of the Notes to the Investor,
certified by a duly authorized director of the Board or the Secretary of the Company to be a true, complete and correct copy thereof; 
 (l)
a copy of the register of warrant holders of the Company as of the Closing evidencing the issuance of the Warrants to the Investor, certified by a duly authorized director of the Board of the Secretary of the Company to be a true, complete and
correct copy thereof; and 
 (m) such other documents and deliveries as set forth in Section 6. 

3.3 Closing Deliveries of the Investor. At the Closing, the Investor shall pay (a) US$25,000,000 of the Purchase Price to Oriental
Shiny by wire transfer of immediately available funds to Oriental Shiny’s account provided to the Investor by the Company five (5) Business Days prior to the Closing; and (b) the remaining amount of the Purchase Price of US15,050,000 (the
“Remaining Purchase Price”) to the Company by wire transfer of immediately available funds to an account provided to the Investor by the Company five (5) Business Days prior to the Closing. 

  
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 4. Representations and Warranties of the Warrantors. Subject to such exceptions specifically
disclosed in (a) any SEC filings filed or furnished by the Company with the SEC prior to the date hereof (excluding any disclosures set forth in the SEC Filings under the headings “Risk Factors” and “Forward-Looking Statements”
and any other disclosures in any other forward-looking or cautionary statements) and (b) as set forth in the disclosure schedule attached to this Agreement as Schedule 3 (the “Disclosure Schedule”), specifically identifying
the relevant section of this Agreement (provided, that disclosure in any section of such Disclosure Schedule shall apply to any section of this Agreement only to the extent it is reasonably apparent that such disclosure is relevant to such section),
the Warrantors hereby jointly and severally represent and warrant to the Investor that each of the representations and warranties contained in this Section 4 is true, complete and not misleading as of the date of this Agreement, and each of
such representations and warranties shall be true, complete and not misleading on and as of the Closing Date, with the same effect as if made on and as of the Closing Date (unless such representation or warranty by its term speaks of a specified
date, in which case the accuracy of such representation or warranty will be determined with respect to such date): 
 4.1 Organization,
Good Standing and Qualification. Each Group Company is duly organized, incorporated or formed, validly existing and in good standing (with respect to the jurisdictions that recognize the concept of good standing) under the Laws of the
jurisdiction of its organization, incorporation or formation. With respect to the Subsidiaries of the Company that are variable interest entities as defined in FIN46R under GAAP and are consolidated by the Company for financial reporting purposes
pursuant to the terms thereof, the Company possesses control over such Subsidiaries through the VIE Agreements, true and complete copies of which have been included in the SEC Filings. 

4.2 Authorization; Enforceable Agreement. All corporate action on the part of any Warrantors, necessary for the authorization,
execution, and delivery of each of the Transaction Documents, the performance of the respective obligations of the Warrantors under each of the Transaction Documents, and the authorization, issuance (or reservation for issuance), sale, and
delivery of (a) the Notes and the Warrants being sold hereunder, and (b) the ADSs issuable upon conversion of the Notes or exercise of the Warrants in accordance with their respective Conditions, and each of the Transaction Documents, when executed
and delivered, assuming due authorization, execution and delivery by the Investor or any other party thereto other than the Warrantors, constitutes and will constitute valid and legally binding obligations of the Warrantors, enforceable in
accordance with their respective terms, except (i) as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles, and
(ii) to the extent the indemnification provisions contained in Section 8.18 of this Agreement may be limited by applicable securities Laws. 

4.3 Foreign Private Issuer. The Company is a “foreign private issuer” within the meaning of Rule 405 under the Securities
Act. 
 4.4 Governmental Consents. No consent, approval, order, or authorization of or registration, qualification, declaration,
or filing with, any Governmental Authority on the part of any Warrantor is required in connection with the offer, sale, or issuance of the Notes, the Warrants or the Ordinary Share issuable upon conversion of the Notes or exercise of the Warrants or
the consummation of any other transaction contemplated by the Transaction Agreements, except for the following: (i) the filing of any required notifications under applicable securities Laws, which filings will have occurred within the
appropriate time periods; (ii) if requested, the filing with the SEC of the Registration Statements contemplated under this Agreement, (iii) any application or notification to NASDAQ that is required in connection with the issuance and sale of the
Notes, the Warrants and the ADSs issuable upon conversion of the Notes or exercise of the Warrants; (iv) any filings required by the Financial Industry Regulatory Authority; and (v) the filing with the SEC of such reports under the Exchange Act as
may be required in connection with this Agreement and the transactions contemplated by this Agreement. 

  
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 4.5 Capitalization. As of the date hereof, the Company has (i) 28,783,929 Ordinary Shares
issued and outstanding, which includes 5,582,328 Ordinary Shares issued to the Depositary to facilitate future issuance of ADSs upon exercise of options under the Company’s Incentive Plan, (ii) 14,188,400 Ordinary Shares issuable pursuant to
any outstanding Equity Securities exercisable or exchangeable for, or convertible into, any capital shares of the Company or pursuant to the Company’s Incentive Plan, and (iii) 243 Ordinary Shares available for issuance under the Company’s
Incentive Plan. All of the issued and outstanding Ordinary Shares are duly authorized, validly issued, fully paid and non-assessable and free of preemptive rights of any Persons and similar rights and were issued in compliance with all applicable
securities Laws. Other than the Company’s Incentive Plan, there are no outstanding options, warrants, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or
exchangeable for, or giving any Person any right to subscribe for or acquire, any Equity Securities of the Company, or Contracts by which the Company or any Subsidiary is or may become bound to issue additional Equity Securities of the Company, or
securities or rights convertible or exchangeable into Equity Securities of the Company. None of the Company or its Subsidiaries is subject to any obligation (contingent or otherwise) to purchase or otherwise acquire or retire any of its outstanding
Equity Securities. Except as disclosed in the SEC Filings and except as provided in this Agreement, no Person has the right to require the Company to register any Equity Securities of the Company with the SEC or any other Governmental Authority,
whether on a demand or piggy-back basis or in connection with the registration of securities of the Company for its own account or for the account of any other Person. 

4.6 Noncontravention. The execution, delivery and performance by any Warrantor of this Agreement and each other Transaction
Document to which it is a party, the consummation of the transactions contemplated hereby or thereby, the issuance and sale of the Notes and the Warrants hereunder, the conversion of the Notes or the exercise of the Warrants will not (i) conflict
with or violate any provision of any Warrantor’s Constitutional Documents, (ii) conflict with or violate any applicable Law or any Governmental Order to which any Warrantor is subject or (iii) conflict with, result in any breach of or creation
of an Encumbrance under, constitute a default (with or without notice or lapse of time, or both) under, require any notice or consent under, or give to others any rights of termination, acceleration or cancellation of, any Contract to which any
Warrantor is a party or by which it is bound or to which any of its assets or properties are subject. 
 4.7 Valid Issuance. The
Ordinary Shares issuable upon conversion of the Notes or exercise of the Warrants have been duly and validly reserved for issuance and, upon issuance of the Ordinary Shares upon conversion of the Notes or exercise of the Warrants in accordance with
their respective terms, the Ordinary Shares will be duly and validly issued, fully paid, and nonassessable and will be free of any Encumbrances or restrictions on transfer other than restrictions on transfer under the Transaction Documents, the
Constitutional Documents of the Company and under applicable securities Laws. The sale of the Notes and the Warrants hereunder is not, and the subsequent issuance of the Ordinary Shares upon conversion of the Notes or exercise of the Warrants will
not be, subject to any preemptive rights, rights of first offer or any anti-dilution provisions contained in the Constitutional Documents of the Company or any other agreement. 

  
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 4.8 Subsidiaries. 

(a) All of the issued and outstanding shares of capital stock of each of the Company’s Subsidiaries that is registered or incorporated
outside of the PRC are owned directly or indirectly by the Company, free and clear of all liens, and are duly authorized and validly issued, fully paid and non-assessable and there is no subscription, option, warrant, call right, agreement or
commitment relating to the issuance, sale, delivery, voting, transfer or redemption by any such Subsidiaries (including any right of conversion or exchange under any outstanding security or other instrument) of the capital stock of any such
Subsidiaries (other than any such subscription, option, warrant, call right, agreement or commitment in favor of the Company or its Subsidiaries). 

(b) For each of the Company’s Subsidiaries that is registered or incorporated in the PRC (the “Onshore Companies”), each
holder of record of its registered capital have contributed in full its subscribed share of the entity’s registered capital pursuant to the articles of association and, as applicable, relevant joint venture contracts, and all such contributions
have been verified and certified by a Chinese registered public accountant according to applicable law, approved by and registered with all relevant Governmental Authorities and fully paid, and verification certificates have been issued to each such
holder of record or previous investor accordingly. All previous transfers or assignments of registered capital have been approved by and registered with the relevant Governmental Authorities and all necessary corporate actions. Each Onshore Company
successfully passed all of the applicable annual audits required by applicable law. Without limiting the generality of the foregoing, all approvals, registrations and filings required under PRC Law for the due and proper establishment and operation
of each Onshore Company and for the conduct of the business of each such Onshore Company have been duly obtained by the Onshore Companies from the relevant PRC Governmental Authorities and are in full force and effect, except to the extent the
failure to obtain or complete any such approval, registration or filing would not, individually or in the aggregate, have a Material Adverse Effect. All required approvals of, and filings and registrations with, the relevant Onshore Companies
required in respect of each Onshore Company and other Subsidiaries (to the extent applicable) and their respective operations, including but not limited, the National Development and Reform Commission of the PRC, the MOFCOM, the SAIC, the SAFE or
their respective local branches, and the relevant tax bureau, customs authorities and product registration authorities, have been duly obtained or completed by the Company or the applicable Company Subsidiary in accordance with the relevant PRC
Laws, except to the extent the failure to obtain or complete any such approvals, filings or registration would not, individually or in the aggregate, have a Material Adverse Effect. 

4.9 Disclosure. All information and materials provided or made available to the Investor by or on behalf of any Warrantor in
connection with the negotiation or execution of this Agreement and the other Transaction Documents are true and correct in all material aspects as of the date hereof and do not contain any untrue statement of a fact or omit to state any fact
necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading in any material aspect. 

4.10 Financial Statements. 

(a) The financial statements of the Group on a consolidated basis for each of the periods included or incorporated by reference in the SEC
Filings, including the Company’s audited financial statements prepared in respect of the fiscal year ended December 31, 2014 filed with the SEC on Form 20-F on March 27, 2015 (the “Financial Statements”), (A) fairly present the
financial condition and the results of operations of the Group as of the dates and for the periods indicated in such SEC Filings in accordance with GAAP, (B) were prepared in accordance with GAAP applied on a consistent basis throughout the periods
covered thereby and (C) have been prepared from and are consistent with the books and records of each of the Group Companies in all material aspects. 

(b) The Group does not have any liabilities or obligations (accrued, absolute, contingent or otherwise) that would be required under GAAP to
be reflected on a consolidated balance sheet of the Company, other than liabilities or obligations (i) reflected on, reserved against, or disclosed in the notes to, the Company’s audited consolidated balance sheet included in the Financial
Statements for the fiscal year ended December 31, 2014, (ii) that were incurred in the ordinary course of business since December 31, 2014, or (iii) other undisclosed liabilities which would not, individually or in the aggregate, have a Material
Adverse Effect. 

  
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 4.11 SEC Filings. 

(a) The Company has filed, on a timely basis, all reports, schedules, forms, statements and other documents required to be filed with or
furnished to the SEC under the Securities Act or the Exchange Act (all of the foregoing filed during the thirty-six (36) months prior to the date hereof collectively, the “SEC Filings”). The Group is principally engaged in the
business described in its most recent annual report, and such report contains a complete and accurate description of the business of the Group, taken as a whole and in all material aspects. At the time of the filing thereof, each of the SEC Filings
complied as to form with the applicable requirements of the Securities Act and the Exchange Act in all material aspects and did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were made, not misleading. The Company is subject to the reporting requirements of Sections 13(a) or 15(d) of the Exchange Act. As of the date hereof, there are no
outstanding or unresolved comments received from the SEC with respect to any of the SEC Filings. The Company satisfies the registrant requirements for the use of a registration statement on Form F-3 to register the Registrable Securities for resale
by any Holder under the Securities Act. There exist no facts or circumstances (including any required approvals or waivers or any circumstances that may delay or prevent the obtaining of accountant’s consents) that could reasonably be expected
to prohibit or delay the preparation and filing of the Registration Statement for the resale of the Registrable Securities by any Holder contemplated by this Agreement. 

(b) The Company has designed and maintains a system of internal controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) sufficient to provide reasonable assurances regarding the reliability of financial reporting for the Company and its Subsidiaries. The Company (i) has implemented and
maintains disclosure controls and procedures (as defined in Rule 13a-15(f) of the Exchange Act) (A) designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to the Company’s management to allow timely decisions regarding required disclosure and (B)
reasonably effective to perform the functions for which they were designed, and (ii) has disclosed, based on its most recent evaluation prior to the date of this Agreement, to the Company’s outside auditors and the Board’s audit committee
(and made summaries of such disclosures available to the Investor) (A) any deficiencies and weaknesses in the design or operation of internal controls over financial reporting that are reasonably likely to materially and adversely affect the
Company’s ability to record, process, summarize and report financial information, and (B) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal controls over
financial reporting. 
 4.12 Absence of Changes. Since December 31, 2014, except as disclosed in the SEC Filings or otherwise
explicitly permitted by this Agreement, there has not been: 
 (a) any material adverse change in the consolidated assets, liabilities,
financial condition or operating results of the Group from that reflected in the Company’s most recently filed Annual Report on Form 20-F; 

  
 17 

 (b) any declaration or payment of any dividend, or any authorization or payment of any
distribution, on any of the share capital of the Company, or any redemption or repurchase of any Equity Securities of the Company; 
 (c)
any material damage, destruction or loss, whether or not covered by insurance, to any assets or properties of the Group Companies; 
 (d)
any waiver, not in the ordinary course of business consistent with past practice, by any Group Company of a material right or of a material debt owed to it; 

(e) any satisfaction or discharge of any Encumbrance or payment of any Liabilities by any Group Company, except in the ordinary course of
business consistent with past practice or in an amount individually or among related Liabilities below US$1,000,000 and except as disclosed in the Disclosure Schedule; 

(f) any change or amendment to the Constitutional Documents of any Group Company or material change to any material Contract or arrangement by
which any Group Company is bound or to which any of their respective material assets or properties is subject, except the third amendment and restatement of the Company’s Incentive Plan adopted by the Board in November 2015; 

(g) any material transaction entered into by any Group Company other than in the ordinary course of business consistent with past practice;

 (h) the loss of the services of any key employee, or material change in the composition or duties of the executive officers of any Group
Company; or 
 (i) any other event or condition of any character that has had or could reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect. 
 4.13 Indebtedness. None of the Group Companies is, immediately prior to this
Agreement, or will be, at the time of the Closing after giving effect to the Closing, in default in the payment of any material Indebtedness. 

4.14 Litigation. There is no material Action pending or, to the knowledge of the Company, threatened against or affecting any
Group Company or any of their respective material properties. To the knowledge of the Company, none of the Group Companies, or any director or officer thereof in his or her capacity as such director or officer or otherwise in connection with his or
her role or activities with such Group Company, is or has been the subject of any Action involving a claim of violation of, or liability under, applicable securities Laws, or a claim of breach of fiduciary duty. 

4.15 Taxes. 
 (a) Each
Group Company (A) has timely filed all material Tax Returns required to be filed by it; (B) has timely paid all Taxes required to be paid by it for which payment was due (whether or not shown on any Tax Returns) and; (C) has established an adequate
accrual or reserve for the payment of all material Taxes payable in respect of the periods or portions thereof that are not yet due and payable. 

(b) No deficiencies for any Tax have been claimed, proposed, assessed or, to the knowledge of the Company, threatened against any Group
Company in writing. 

  
 18 

 (c) None of the Group Companies has received from any Governmental Authority (including any sales
or use tax authority) any (A) written notice indicating an intent to open a tax audit, (B) written request for information related to material Tax matters, or (C) written notice of deficiency of any amount of Tax proposed, asserted, or assessed by
any governmental authority against any Group Company. No Tax Return of any Group Company is under audit by any governmental authority. No claim has ever been made by a governmental authority in a jurisdiction where any Group Company does not file
Tax Returns or pay any Taxes that any Group Company is or may be required to file any such Tax Returns or pay any Taxes in that jurisdiction that has not been resolved. 

(d) No Tax liens are currently in effect against any of the assets of any Group Company other than liens for Taxes not yet due and payable.
There is not in effect any waiver by any Group Company of any statute of limitations with respect to any Taxes nor has any Group Company agreed to any extension of time for filing any material Tax Return that has not been filed. 

(e) Each of the Group Companies has complied with all applicable Law relating to the withholding of Taxes in all material aspects. 

(f) None of the Group Companies has any Liability for another person (other than a Group Company) as a result of being a member of a
consolidated, combined, unitary or aggregate group of companies. 
 (g) Any material preferential Tax treatment enjoyed by any Group Company
on or prior to the date of the Closing has been in compliance with all applicable Laws and will not be subject to any retroactive deduction or cancellation except as a result of retroactive effects of changes in the applicable Laws. 

4.16 Compliance with Laws; Orders and Permits. Each Group Company has been and is in compliance in all material respects with all Laws
and Governmental Orders to which such Group Company is subject or by which such Group Company’s assets or properties are bound. Each Group Company owns, holds, possesses or lawfully uses in the operation of its business all Permits that are
necessary for it to own or lease its properties and assets and conduct its business as currently conducted and as proposed to be conducted (the “Required Permits”), and all the Required Permits are in full force and effect and no
cancellation or suspension of any Required Permit is pending or, to the knowledge of the Company, threatened, except to the extent the failure to own, hold, possess or use the Required Permits would not, individually or in the aggregate, have a
Material Adverse Effect. To the knowledge of the Company, any record owner of any Equity Securities of the Company who is a PRC resident under the SAFE Circulars or is otherwise subject to the SAFE Registration Requirements, has fully complied with
the SAFE Registration Requirements. 
 4.17 Real Property. 

(a) Except the mortgages contemplated by the Onshore Mortgages, the Company or one of its Subsidiaries, as the case may be, holds record,
good, valid, legal and marketable title to the Owned Real Property, free and clear of all material liens, and the land use rights relating to the Owned Real Property have been obtained from a competent Governmental Authority and all amounts
(including, if applicable, land grant premiums) required under applicable Law in connection with securing such title or land use rights have been paid in full. Each Group Company has duly complied in all material respects with all the terms and
conditions of, and all of its obligations under, the relevant land use rights contract or certificate or real property purchase contract in relation to any Owned Real Property owned by it. The Owned Real Property is and remains in conformity in all
material respects with all applicable building codes and standards, construction and building, fire prevention, safety, planning or zoning Law. 

(b) Each of the Group Companies has valid leasehold interests in all of their respective Leased Real Property, free and clear of all material
liens, and each lease agreement of such Leased Real Property (collectively, the “Lease Agreements”) is valid, binding and enforceable. None of the Group Companies is delinquent in respect of any rent, rates and other charges for
which the tenant is responsible under the Lease Agreements and there exists no default or event of default (or event which with or without notice or lapse of time or both would become a default) on the part of any Group Company, as applicable. Each
of the Group Companies has observed and performed all restrictions and covenants on the part of the tenant and the conditions contained in the Lease Agreements in all material respects. Each of the Group Companies enjoys peaceful and undisturbed
possession of the Leased Real Property under all such Lease Agreements. There are no written or oral subleases, licenses or agreements granting to any other Person the right of use or occupancy of any Leased Real Property. 

  
 19 

 4.18 Material Contracts. 

(a) For purposes of this Agreement, “Material Contracts” means each outstanding Contract to which any Group Company is a
party or to which any Group Company or any of their properties or assets is subject, which (A) is or would be required to be filed by the Company as a “material contract” pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K
under the Securities Act, (B) is a VIE Agreement, or (C) is expected to account for five percent (5%) or more of the Company’s revenues in any of the fiscal years ending December 31, 2015, 2016 or 2017. 

(b) All of the Material Contracts are valid, subsisting, in full force and effect and binding upon and enforceable against the applicable
Group Company and, to the knowledge of the Company, the other parties thereto. Each Group Company has duly performed all its obligations in all material respects under each Material Contract to the extent that such obligations to perform have
accrued. No breach or default, alleged breach or default, or event which would (with or without notice, lapse of time or both) constitute a default under any of the Material Contracts by any Group Company or, to the knowledge of the Company, any
other party or obligor with respect thereto, has occurred, or as a result of any Transaction Document, or the performance hereof or thereof, will occur. No Group Company has received or given any notice regarding any such breach or default. 

4.19 Intellectual Property. 

(a) Each Group Company owns or otherwise has sufficient rights (including but not limited to the applicable rights of development,
maintenance, licensing and/or transfer) to all material Intellectual Property necessary and sufficient to conduct its business substantially as currently conducted by such Group Company (“Company IP”). All Company Registered IP is
owned by and registered or applied for solely in the name of a Group Company, is valid and subsisting and has not been abandoned, and all necessary registration, maintenance and renewal fees with respect thereto and currently due have been satisfied
in all material aspects. No Group Company, or any of its employees, officers or directors, has taken any actions or failed to take any actions that would cause any Company Owned IP to be invalid, unenforceable or not subsisting. Other than created
in the ordinary course of business consistent with past practice, the Company Owned IP is free and clear of any Encumbrance, license or other Contract granting rights therein to any other Person. No Company Owned IP is subject to any proceeding or
outstanding Governmental Order in the PRC or settlement agreement or stipulation that (a) restricts in any manner the use, transfer or licensing thereof, or the making, using, sale, or offering for sale of any Group Company’s products or
services, by any Group Company or (b) may affect the validity, use or enforceability of such Company Owned IP. Other than in the ordinary course of business consistent with past practice, no Group Company has (a) transferred or assigned any Company
IP to any Person; (b) authorized any Person the joint ownership with respect to any Company IP; or (c) permitted the rights of any Group Company in any Company IP to lapse or enter the public domain. 

  
 20 

 (b) No Group Company has violated, infringed or misappropriated in any material respect any
Intellectual Property of any other Person, nor has any Group Company received any written notice alleging any of the foregoing. To the knowledge of the Company, no Person has violated, infringed or misappropriated any Company IP of any Group Company
in any material aspect, and no Group Company has given any written notice to any other Person alleging any of the foregoing. 
 (c) Each
Group Company has taken reasonable and appropriate steps to protect, maintain and safeguard Company IP and made all applicable filings, registrations and payments of fees in connection with the foregoing. 

4.20 Ranking of the Notes. The Notes, when issued by the Company, will constitute senior indebtedness of the Company and will rank
at least pari passu with all other existing and future secured Indebtedness of the Company (subject to any priority rights of such Indebtedness pursuant to applicable Laws) and senior in right of payment to all existing and future obligations
of the Company expressly subordinated in right of payment to the Notes. 
 4.21 Investment Company Act. The Company is not
registered, and after giving effect to the sale of the Notes and Warrants and application of the proceeds thereof as described in Section 2 will not be required to register, as an “investment company” as such term is defined in the
Investment Company Act of 1940. 
 4.22 Anti-Corruption Compliance. None of the Group Companies, their respective directors,
officers, and, to the knowledge of the Company, agents, employees or other Persons that act for or on behalf of any Group Company, authorized or made, either directly or indirectly through any third party, any gift, offer, promise, or payment of
anything of value: (a) to any Governmental Official (as defined below) with the intent or purpose of (i) influencing any act or decision of such Governmental Official in his or her official capacity, (ii) inducing such Governmental Official to do or
omit to do any act in violation of the lawful duty of such Governmental Official, (iii) securing any improper advantage for any Group Company, or (iv) inducing such Governmental Official to use his or her influence with a government or
instrumentality thereof, political party or international organization to affect or influence any act or decision of such government or instrumentality, political party or international organization, in order to assist any Group Company or in
obtaining or retaining business for or with, or directing business to, any person, except to the extent that such conduct was expressly permitted by applicable Law; or (b) to any Person in violation of any Law against commercial or official bribery
or corruption, including, but not limited to, the U.S. Foreign Corrupt Practices Act of 1977 (“FCPA”). As used in this subsection, “Governmental Official” means (a) any employee or official of any government,
including any employee or official of any entity owned or controlled by a government, (b) any employee or official of a political party, (c) any candidate for political office or his or her employee, or (d) any employee or official of an
international organization. Each Group Company has implemented policies and procedures to prevent and detect violations of the FCPA and any other Law against commercial or official bribery or corruption. 

4.23 Listing and Maintenance Requirements. The ADSs, each representing one Ordinary Share, are registered as a class of security
pursuant to Section 12(b) or 12(g) of the Exchange Act and listed on NASDAQ. The Company has taken no action which is designed to, or which is reasonably likely to, have the effect of terminating the registration of such ADSs under the Exchange
Act nor has the Company received any notification that the SEC is contemplating terminating such registration. There are no actions, suits, proceedings or investigations pending or, to the knowledge of the Company, threatened against the Company
relating to the continued listing of the ADSs on NASDAQ, and the Company has not received any notice of, nor to the Company’s knowledge is there any basis for, the delisting of the ADSs from NASDAQ. 

  
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 4.24 Offering; Exemption. Assuming the accuracy of the Investor’s representations and
warranties set forth in Section 5 of this Agreement, no registration under the Securities Act or any applicable state securities law is required for the offer and sale of the Notes or the Warrants by the Company to the
Investor as contemplated hereby or for any conversion of the Notes or exercise of the Warrants. 
 4.25 No Integrated
Offering. Neither the Company, nor any Affiliate of the Company, nor any person acting on its behalf or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under
circumstances that would cause the offering or issuance of the Notes or Warrants to be integrated with prior offerings by the Company for purposes of the Securities Act in a manner that would require registration of such offer and sale under the
Securities Act, or would cause any applicable state securities Law exemptions or any applicable stockholder approval provisions exemptions, including under the rules and regulations of any national securities exchange or automated quotation system
on which any of the securities of the Company are listed or designated to be unavailable, nor will the Company take any action or steps that would cause the offering or issuance of the Notes or the Warrants to be integrated with other offerings.

 4.26 No Adjustment to Other Securities. The issuance and sale of the Notes and the Warrants hereunder will not obligate the
Company to issue ADSs, Ordinary Shares or other securities to any Person (other than the Investor) and will not result in the adjustment of the exercise, conversion, exchange or reset price of any outstanding security. 

4.27 Related Party Transactions. In the past two financial years preceding the date of this Agreement, except as disclosed in the
SEC filings, none of the Affiliates, officers or directors of any Group Company is presently a party to any transaction with any Group Company (other than as holders of share options and for services as employees, officers and
directors), including any Contract or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any Affiliate, officer or director.
Except as disclosed in the SEC Filings, none of the Affiliates, officers or directors of the Company directly or indirectly competes with, or has any interest in any Person that, directly or indirectly, competes with, any Group Company. 

5. Representations and Warranties of the Investor. The Investor represents and warrants to the Company as of the date of this Agreement that: 

5.1 Organization. The Investor is a company duly incorporated and organized (as applicable) and validly existing in good standing
(as applicable) under the laws of its place of incorporation and in accordance with its Constitutional Documents (as the case may be) and is in material compliance with all material registrations and approval requirements of its place of
incorporation. 
 5.2 Authorization; Enforceability. The Investor has full right, power, authority and capacity to enter into
each of the Transaction Documents to which it is a party, to perform its obligations thereunder, and to consummate the transactions contemplated by each such Transaction Document. The execution, delivery and performance of each of the Transaction
Documents have been duly authorized by all necessary action on the part of the Investor, and each of the Transaction Documents has been duly executed and delivered by the Investor and, assuming due authorization, execution and delivery of each of
the Transaction Documents by the Company, will constitute valid and binding obligation of the Investor, enforceable against it in accordance with its terms. 

  
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 5.3 Governmental Consents. All consents, approvals, orders or authorizations of, or
registrations, qualifications, designations, declarations or filings with, any Governmental Authority or any other competent corporate authority required in connection with the execution, delivery and performance by the Investor of each of the
Transaction Documents to which it is a party and the consummation of the transactions contemplated thereby have been obtained. 
 5.4
Purchaser Status. 
 (a) The Investor is (i) not a “U.S. person” and is located outside the United States, as such terms
are defined in Rule 902 of Regulation S under the Securities Act; (ii) aware that the sale of the Notes, the Warrants and the issuance of Ordinary Shares and the ADSs upon any conversion of the Notes or exercise of the Warrants (collectively, the
“Securities”) is being made in reliance on Rule 903 promulgated under the Securities Act and (iii) acquiring the Securities for its own account and not with a view to, or the intention of, or for sale in connection
with, any distribution thereof in violation of applicable securities Laws. 
 (b) The Investor understands and agrees that the Securities
are being offered in a transaction not involving any public offering within the meaning of the Securities Act, that such Securities have not been and, except as contemplated by Section 8.16 and the registration rights of the Investor provided
for in this Agreement, will not be registered under the Securities Act and that such Securities may be offered, resold, pledged or otherwise transferred only (i) in a transaction not involving a public offering, (ii) pursuant to an exemption from
registration under the Securities Act provided by Rule 144 thereunder (if available), (iii) pursuant to an exemption from registration under the Securities Act provided by Rule 904 thereunder (if available), (iv) pursuant to an effective
registration statement under the Securities Act or (v) to the Company or one of its Subsidiaries, in each of cases (i) through (v) in accordance with any applicable state and federal securities Laws, and that it will notify any subsequent purchaser
of Securities from it of the resale restrictions referred to above, as applicable. 
 (c) The Investor understands that, unless sold
pursuant to a registration statement that has been declared effective under the Securities Act or in compliance with Rule 144 thereunder, the Company may require that the Securities bear a legend or other restriction substantially to the following
effect (it being agreed that if the Securities are not certificated, other appropriate restrictions shall be implemented to give effect to the following): 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED: (I) IN
THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS, OR (B) AN OPINION OF COUNSEL, IN FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED
UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES LAWS; OR (II) UNLESS THE SECURITIES HAVE BEEN SOLD PURSUANT TO RULE 144 OR ANOTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.” 
 (d) The
Investor understands that the Company will rely upon the truth and accuracy of the foregoing representations, acknowledgements and agreements. 

  
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 6. Conditions to the Investor’s Obligations at Closing. The obligation of the Investor
to purchase the Notes and Warrants at the Closing is subject to the fulfillment or waiver on or before the Closing of each of the following conditions. 

6.1 Representations and Warranties. Each of the representations and warranties of the Warrantors in this Agreement shall be true and
correct in all material respects (without giving effect to any limitation as to “materiality” set forth therein) as of the Closing except for such representations and warranties made as of a specific date, which shall be true and correct
as of such date. 
 6.2 Performance. Each Warrantor shall have performed all of its obligations under each Transaction Document
required to be complied with or performed by them at or prior to the Closing. 
 6.3 Corporate Approval. Each of the Group Companies
shall have duly attended to and carried out all corporate procedures that are required under the laws of its place of incorporation or establishment to effect its execution, delivery and performance of this Agreement and other Transaction Documents
to which it is a party and the transactions contemplated hereby and thereby, and have provided: 
 (a) a copy of all resolutions and
documentation evidencing the Board’s authorization of this Agreement, the other Transaction Documents and the transactions contemplated hereby and thereby, and the execution, delivery and performance of this Agreement and the other Transaction
Documents, certified by a duly authorized director of the Board or the Secretary of the Company to be true, complete and correct copies thereof; and 

(b) a copy of all resolutions and documentation evidencing the authorization of each of the boards of directors of each of the Company’s
Subsidiaries that are parties to this Agreement, the other Transaction Documents and the transactions contemplated hereby and thereby, as applicable, and the execution, delivery and performance of this Agreement and the other Transaction Documents,
as applicable, certified by a duly authorized director of such party to be true, complete and correct copies thereof. 
 6.4 No Material
Adverse Effect. Since the date of this Agreement, no Material Adverse Effect shall have occurred. 
 6.5 Qualification under
Securities Laws. All registrations, qualifications, permits and approvals, if any, required to be obtained prior to the Closing under applicable securities Laws shall have been obtained for the lawful execution, delivery and performance of
each of the Transaction Documents including, without limitation, the offer and sale of the Securities. 
 6.6 NASDAQ
Requirements. The Company shall have submitted to the NASDAQ any application or notification required in connection with the issuance and sale of the Notes and Warrants hereunder and the Ordinary Shares and the ADSs issuable upon conversion
of the Notes or exercise of the Warrants and complied with all NASDAQ listing requirements applicable to the transactions contemplated by each of the Transaction Documents, if any. 

  
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 6.7 Transaction Documents. The Investor shall have received each Transaction Document
duly executed and delivered by the parties thereto (other than the Investor) and all the conditions precedent under the other Transaction Documents shall have been satisfied or waived. 

6.8 Equity Pledge Agreements. 

(a) The Investor shall have received each document required to be executed and delivered under each of the Equity Pledge Agreements. 

(b) The Equity Pledge Agreements shall have been duly executed by the parties thereunder and all the application documents for the purposes of
obtaining the relevant MOFCOM approval on the equity pledge contemplated under the Equity Pledge Agreements shall have been submitted to the relevant MOFCOM. 

6.9 Onshore Loan. The Loan Agreement and the Onshore Mortgages shall have been duly executed on terms satisfactory to the Investor
and delivered by the parties thereto (other than the Investor) and the Investor or Shanghai Shengye shall have received each document required to be executed and delivered under each of the Onshore Mortgages. 

6.10 Orders. There shall be no Governmental Authority that has 

(a) instituted or to the knowledge of the Company, threatened any action or investigation to restrain, prohibit or otherwise challenge any
transaction contemplated by the Transaction Documents; 
 (b) to the knowledge of the Company, threatened to take any action as a result of
or in anticipation of transactions contemplated by the Transaction Documents; or 
 (c) proposed, enacted, issued, promulgated, enforced or
entered any Law or Governmental Order (whether temporary, preliminary or permanent) which would prohibit, restrict or delay the (A) the transactions contemplated by the Transaction Agreements, (B) the operation of any or all of the Group Companies
after the date hereof, including to compel the Company or any of its Subsidiaries to dispose of all or a material portion of the business or assets of the Company or any of its Subsidiaries as a result of the consummation of such transactions. 

6.11 Trading. Trading in the ADSs shall not be the subject of a current suspension order or trading halt by either the SEC or by
NASDAQ, shall not be the subject of a current suspension or trading halt or then be subject to material limitations. 
 6.12 SEC
Filings. The Company shall have been filed, on a timely basis, all the SEC Filings during the thirty six (36) months preceding the Closing Date. There shall have been no outstanding or unresolved comments received from SEC with respect to any of
the SEC Filings as of the Closing Date. 
 6.13 Opinion of Counsel for the Company as to PRC Law. The Investor shall have
received the opinion of Zhong Lun Law Firm, counsel for the Company as to PRC Law, dated as of the Closing Date. 

  
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 6.14 License Agreement. The License Agreement shall have been entered into and it
shall have become and remain effective. No amendment shall have been made to the License Agreement without the Investor’s prior written consent. 

6.15 Other Deliveries. The Investor shall have received such other documents and deliveries set forth in Section 3.2. 

7. Conditions to the Company’s Obligations at Closing. The obligations of the Company to issue, sell and deliver to the Investor the
Notes and Warrants are subject to the fulfillment or waiver on or before the Closing of each of the following conditions: 
 7.1
Representations and Warranties. Each of the representations and warranties of the Investor contained in this Agreement shall be true and correct in all material respects (without giving effect to any limitation as to “materiality”
set forth therein) as of the Closing except for such representations and warranties made as of a specific date, which shall be true and correct as of such date. 

7.2 Performance. The Investor shall have performed and complied in all material respects with all agreements, obligations and
conditions contained in this Agreement that are required to be performed or complied with it on or before the Closing. 
 7.3 Corporate
Authority. The Investor shall have duly attended to and carried out all corporate procedures that are required under the laws of its place of incorporation or establishment to effect its execution, delivery and performance of this Agreement and
the other Transaction Documents to which it is as a party, and the transactions contemplated hereby and thereby. 
 8. Covenants. The Company and the
Security Providers jointly and severally covenant and agree, and the Investor covenants and agrees, for the benefit of the other Parties to this Agreement and their respective assigns, as follows: 

8.1 Best Efforts; Notices and Consents. Subject to the terms and conditions of this Agreement, from the date of this Agreement to
the Closing, the Warrantors shall use their best efforts to take, or cause to be taken, all appropriate action, and do, or cause to be done, all things necessary, proper or advisable under applicable Law or otherwise to cause the conditions
specified in Section 6 to be satisfied as soon as reasonably practicable and in any case no later than the Long Stop Date. Provided that the Company has satisfied all the conditions specified in Section 6 and subject to all other terms
and conditions of this Agreement, the Investor shall perform its obligations to consummate the transactions contemplated under this Agreement. 

8.2 Access to Information. 

(a) Prior to the Closing Date, the Company shall, and shall cause its Subsidiaries to, upon the Company’s receipt of reasonable prior
notice, provide to the Investor financial or other information (including non-public information) regarding the business and operation of any Group Company, including any information or statements as may be reasonably necessary for the Investor (or
any of its direct or indirect owners) to file any Tax Return or other filings required by law. Prior to the Closing Date, at such times as may be agreed in advance with the Company, representatives of the Investor may, during normal office hours,
(a) visit and inspect any of the sites and premises where the business of any Group Company is conducted and (b) have reasonable access to those officers, employees, agents, accountants, auditors, contractors and subcontractors of any Group Company
who have or may have knowledge of matters with respect to which the Investor reasonably seeks information. The Investor hereby acknowledges its obligations of confidentiality under Section 8.6 hereof. 

(b) Upon the Investor’s reasonable request, the Company shall reasonably cooperate with the Investor, and provide the Investor with all
information reasonably available to any Group Company, to permit the Investor to (i) accurately prepare its tax returns and comply with any reporting requirements as a result of such determination; (ii) determine whether any Group Company is or has
been a PFIC for United States federal income tax purposes and to determine the consequences to the Investor of such status; and (iii) make or cause to be made and maintain any and all United States federal income tax elections that may be advisable
in the Investor’s reasonable discretion, to the extent related to the investment in the Company pursuant to this Agreement, including without limitation a “qualified electing fund” election under Section 1295 of the Code. 

  
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 8.3 Reservation of Ordinary Shares; Issuance of Ordinary Shares; Blue Sky. 

(a) For as long as any Notes or Warrants remain outstanding, the Company shall at all times reserve and keep available, free from preemptive
rights of other Persons, out of its authorized but unissued Ordinary Shares or Ordinary Shares held in treasury by the Company, for the purpose of effecting the conversion of the Notes, the full number of Ordinary Shares upon the conversion of all
Notes (after giving effect to all anti-dilution adjustments) then outstanding and shall ensure that it maintains the effectiveness of its registration statement on Form F-6 for registration of ADSs in an amount sufficient to represent such Ordinary
Shares and to allow the Investor to sell such Ordinary Shares represented by the ADSs. All Ordinary Shares issued upon conversion of the Notes or exercise of the Warrants shall represent newly issued shares or shares held in treasury by the Company,
shall have been duly authorized and validly issued and shall be fully paid and nonassessable, and shall be free from preemptive rights and free of any lien or adverse claim. 

(b) The Company shall, on or before the Closing, take such action as necessary in order to obtain an exemption for or to qualify the issuance
of the Ordinary Shares and the ADSs under applicable foreign or U.S. securities or “blue sky” Laws (or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Investor on or prior to
the Closing. The Company shall make all filings and reports relating to the offer and sale of the ADSs required, if any, under such Laws following the Closing. 

8.4 Transfer Taxes. The Company shall pay any and all documentary, stamp or similar issue or transfer tax due on (x) the issue of
the Notes at Closing, (y) the issue of the Warrants at Closing and (z) the issue of the ADSs upon conversion of the Notes or exercise of the Warrants. However, in the case of conversion of the Notes, the Company shall not be required to pay any tax
or duty that may be payable in respect of any transfer involved in the issue and delivery of the ADSs in a name other than that of the holder of the Notes to be converted, and no such issue or delivery shall be made unless and until the Person
requesting such issue has paid to the Company the amount of any such tax or duty, or has established to the satisfaction of the Company that such tax or duty has been paid. 

8.5 Public Disclosure. Subject to Section 8.8, on or before 8:30 a.m., New York time, on the first Business Day following
the date of this Agreement, the Company shall issue a press release and file a Current Report on Form 6-K describing the terms of the transactions contemplated by the Transaction Documents in the form required by the Exchange Act the “6-K
Filing”), provided that the Investor shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release. 

  
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 8.6 Confidentiality. Each Party will hold, and will cause its respective Affiliates
and their directors, officers, employees, agents, consultants and advisors to hold, in strict confidence, unless disclosure to a regulatory authority is necessary or appropriate in connection with any necessary regulatory approval or unless
disclosure is required by judicial or administrative process or by other requirement of Law or the applicable requirements of any regulatory agency or relevant stock exchange, all non-public records, books, contracts, instruments, computer data and
other data and information (collectively, “Information”) concerning the other Party furnished to it by such other Party or its representatives pursuant to this Agreement (except to the extent that such information can be shown to
have been (a) previously known by such Party on a non-confidential basis, (b) in the public domain through no fault of such Party or (c) later lawfully acquired from other sources on a non-confidential basis by the Party to which it was furnished),
and no Party shall release or disclose such Information to any other person, except its Affiliates, officers, directors, employees, partners, members, auditors, attorneys, financial advisors, any participant who has entered into an participation
agreement with the Investor in connection with the transactions contemplated under the Transaction Documents, other consultants and advisors. Without limiting the generality of the foregoing, the following shall not constitute a breach of the
confidentiality obligation under this Section 8.6 by the Company: (i) the issue of the 6-K Filing pursuant to Section 8.5 and (ii) the filing of, and the disclosure of the material terms of, this Agreement in the reports, schedules,
forms, statements and other documents required to be filed with or furnished to the SEC under the Securities Act or the Exchange Act, provided that the Investor shall be consulted by the Company in connection with any such public disclosure
prior to its release. 
 8.7 Financial Information; Listing. The Company shall, at any or all times when any of the Notes,
Warrants or Ordinary Shares or ADSs issuable upon conversion of the Notes or exercise of the Warrants remain outstanding, (a) timely file with the SEC, within the time periods specified in the SEC’s rules and regulations, including Rule 12b-25,
all financial information and other reports required to be filed with the SEC, and any other information required to be filed with the SEC under the Exchange Act and the rules and listing requirements of NASDAQ, (b) not terminate its status as an
issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would otherwise permit such termination, (c) deliver to the Investor (x) copies of all such filings with the SEC within two (2)
Business Days after the filing thereof with the SEC and (y) facsimile copies and overnight courier of all press releases issued by the Company on the same day as the release thereof, in each case, unless the foregoing are filed with the SEC
through the Electronic Data Gathering, Analysis and Retrieval system of the SEC (“EDGAR”) or are posted on the Company’s website are immediately available to the public through EDGAR or the Company’s website, and (d)
maintain the ADSs’ authorization for listing on NASDAQ and shall not, and shall cause its Subsidiaries not to, take any action which would be reasonably expected to result in the delisting or suspension from trading of the ADSs on NASDAQ. 

8.8 Corporate Existence, Assets, Insurance. The Company shall, and shall cause each of its Subsidiaries to, (a) maintain its
corporate existence, excluding creations of and mergers among Subsidiaries of the Company or the termination of existence of a Subsidiary which would not reasonably be expected to be material to the Company or any of its Subsidiaries,
(b) maintain its material assets in good working order and condition, ordinary wear and tear excepted; and (c) maintain with financially sound and reputable insurance companies, insurance on all of its insurable assets in at least such amounts
and against at least such risks as are usually insured against in the same general area by companies of established repute engaged in the same or a similar business in the markets where the Company conducts its business. 

8.9 Onshore Loan Repayment. Each of WFOE 1, WFOE 2 and the Operating Company shall not (a) repay or attempt to repay any or all portion
of the loan contemplated by the Loan Agreement until such time as requested by Shanghai Shengye; or (b) take any step to cause any or all portion of the mortgages contemplated by the Onshore Mortgages to be released until such time as requested by
the Shanghai Shengye or in accordance with Section 9; or (c) file any claims or suits with respect to the Loan Agreement or the Onshore Mortgages unless in the case of this Section 8.9(c) only there is any claim or suit filed
by the Investor in connection with this Agreement. Notwithstanding the foregoing, Section 8.9(c) shall not apply to WFOE 1, WFOE 2 or the Operating Company if the Investor fails to cause the release of the Mortgaged Properties as and when
required under Section 9. 

  
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 8.10 Compliance with Laws. The Company shall comply, and cause each Subsidiary to
comply, in all material respects with all applicable laws, ordinances, rules, regulations and requirements of any governmental authorities, including the requirements of the Sarbanes-Oxley Act of 2002, and any and all applicable rules and
regulations promulgated by the SEC thereunder that are effective. 
 8.11 Anti-Corruption Compliance. 

(a) The Company shall not, and shall cause each of its Subsidiaries not to take any action or omit to take any action that would or would
reasonably be expected to lead to, or otherwise cause or allow to occur, any event or occurrence that, if such event or occurrence occurred prior to or at the Closing, would constitute a breach of, or require disclosure against, the representations
contained in Section 4.22. 
 (b) The Company shall, and shall cause each of its Subsidiaries to maintain its books and records in a
manner that, in reasonable detail, accurately and fairly reflects the transactions and disposition of its assets in all material aspects. 

8.12 Notice of Developments. The Company shall promptly notify the Investor of the occurrence of any transaction or event or
series of transactions or events if prior to the Closing as a consequence to which (A) any representation or warranty made by any Warrantor in this Agreement was, when made, or has subsequently become, untrue or inaccurate in any material respect,
or (B) any Warrantor shall fail to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by the Warrantors pursuant to this Agreement or (C) the consummation of the transactions contemplated by this Agreement
or the other Transaction Documents will be, or would reasonably be expected to be, prevented or materially delayed. 
 8.13 Listing on
Other Trading Markets. If the Company applies to have its Ordinary Shares or ADSs traded on any trading market other than NASDAQ, the Company shall include in such application all of the Ordinary Shares and the ADSs issuable upon conversion
of the Notes or exercise of the Warrants, and will take such other action as is necessary to cause all of such Ordinary Shares and the ADSs to be listed or quoted on such other trading market as promptly as possible. The Company shall then take all
action reasonably necessary to continue the listing and trading of such Ordinary Shares and the ADSs on such trading market and will comply in all material respects with the Company’s reporting, filing and other obligations in connection
therewith. 
 8.14 ADSs. To the extent applicable, the Company shall bear any fees and expenses in connection with (i) the issuance
of ADSs representing Ordinary Shares acquired pursuant to a conversion of Notes or exercise of Warrants, including fees and expenses related to the issuance of new share certificates or ADSs, the updating of the Company’s register of members
for any deposit of any Ordinary Shares with the Depositary or its designated custodian, the issuance of any legal opinions by counsel to the Company (if required) and ADS issuance fees and other charges of the Depositary and its custodian; and (ii)
the process set forth in the Notes and the Warrants for removing any restrictive legends on any ADSs acquired pursuant to a conversion of Notes or exercise of Warrants, including the ADS issuance fees and other charges of the Depositary and its
custodian in connection therewith. 

  
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 8.15 Use of Proceeds. The Remaining Purchase Price shall be used by the Company as
the working capital of the Group. 
 8.16 Registration. 

(a) The Company shall, as soon as practicable, but in no event later than March 31, 2016 (the “Filing Deadline”), prepare and
file with the SEC a Registration Statement covering the resale of all Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415. Such Registration Statement shall be on Form F-3 (or, if Form F-3 is not then
available to the Company, on such form of Registration Statement as is then available to effect a registration for resale of the Registrable Securities). The Company shall use its best efforts (i) to cause such Registration Statement to be declared
effective by the SEC under the Securities Act (unless it becomes effective automatically upon filing) as promptly as possible after the filing thereof, and shall respond to any comments received from the SEC within ten (10) Business Days, and (ii)
to keep such Registration Statement continuously effective under the Securities Act until such date as is the earlier of (x) the date on which all Registrable Securities covered by such Registration Statement have been sold or (y) the date on which
the Registrable Securities may be sold without any restriction pursuant to Rule 144 (the “Effective Period”). Such Registration Statement shall not include any Ordinary Shares or other securities for the account of any other
holder without the prior written consent of Investor. Notwithstanding the registration obligations set forth in this Section 8.16, if the SEC informs the Company that all of the Registrable Securities cannot, as a result of
the application of Rule 415 under the Securities Act, be registered for resale as a secondary offering on a single registration statement, the Company agrees to promptly (i) inform each Holder and use its best efforts to file amendments to the
Registration Statement as required by the SEC and/or (ii) withdraw the Registration Statement and file a new Registration Statement (a “New Registration Statement”), in either case covering the maximum number of Registrable
Securities permitted to be registered by the SEC, on Form F-3 or such other form available to register for resale the Registrable Securities as a secondary offering; provided, however, that prior
to filing such amendment or New Registration Statement, the Company shall be obligated to use its best efforts to advocate with the SEC for the registration of all of the Registrable Securities in accordance with any publicly-available written or
oral guidance, comments, requirements or requests of the SEC’s staff (“Commission Guidance”). In the event the Company amends the Registration Statement or files a New Registration Statement, as the case may be, under clauses
(i) or (ii) above, the Company will use its best efforts to file with the SEC, as promptly as allowed by the SEC or Commission Guidance, one or more Registration Statements on Form F-3 or such other forms available to register for resale those
Registrable Securities that were not registered for resale on the Registration Statement, as amended, or the New Registration Statement (the “Additional Registration Statements”). For purposes of this Agreement, the filing deadline
of a New Registration Statement and an Additional Registration Statement shall be the tenth (10th) day after the date that the Company is allowed to file such New Registration Statement or Additional Registration Statement, as applicable, by the SEC
or Commission Guidance. 
 (b) Subject to the requirements of Section 8.16(a) regarding the Filing Deadline, whenever required to
effect the registration of any Registrable Securities under this Agreement, the Company shall, as expeditiously as possible: 
 (i) prepare
and file with the SEC a Registration Statement with respect to such Registrable Securities and use its best efforts to cause a Registration Statement that registers such Registrable Securities to become effective, and keep such Registration
Statement effective until all of the Registrable Securities have been disposed of; 

  
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 (ii) prepare and file with the SEC such amendments and supplements to such Registration
Statement and the Prospectus used in connection with such Registration Statement as may be necessary to keep the Registration Statement effective for the Effective Period and to comply with the provisions of the Securities Act and the Exchange Act
with respect to the disposition of all securities covered by such Registration Statement; 
 (iii) furnish to each Holder a Prospectus
(which requirement may be fulfilled by the public filing of such Prospectus on EDGAR, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as the Investor may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by it that are included in such registration; 
 (iv) notify each
Holder and its counsel in writing (i) of the receipt by the Company of any notification with respect to any comments by the SEC with respect to such Registration Statement or Prospectus or any amendment or supplement thereto or any request by the
SEC for the amending or supplementing thereof or for additional information with respect thereto, (ii) of the receipt by the Company of any notification with respect to the issuance by the SEC of any stop order suspending the effectiveness of such
Registration Statement or Prospectus or any amendment or supplement thereto or the initiation or threatening of any proceeding for that purpose, (iii) of the receipt by the Company of any notification with respect to the suspension of the
qualification of such Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purposes, and (iv) of the existence of any fact or the happening of any event that causes the Company to become an
“ineligible issuer,” as defined in Rule 405; 
 (v) use its best efforts to avoid the issuance of, or, if issued, obtain the
withdrawal of (i) any order suspending the effectiveness of the Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest
practicable moment; 
 (vi) use its best efforts to register and qualify the securities covered by such Registration Statement under such
other securities Laws of such jurisdictions as shall be reasonably requested by the Investor; 
 (vii) immediately notify each Holder, at
any time prior to the end of the Effective Period, upon discovery that, or upon the happening of any event as a result of which, the Prospectus includes an untrue statement of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, and promptly prepare, file with the SEC and furnish to each Holder a supplement to or an amendment of such Prospectus as may be
necessary so that such Prospectus shall not include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances
then existing; 
 (viii) use its best efforts to list such Registrable Securities on each securities exchange on which the Ordinary Shares
(including American depositary shares representing the Ordinary Shares) are then listed; and 

  
 31 

 (ix) cooperate with each Holder and the Depositary to facilitate the timely delivery of ADSs (in
book entry or certificated form) to be delivered to a transferee pursuant to a Registration Statement, which ADSs shall be free of all restrictive legends. In connection therewith, if required by the Company’s agent which maintains the register
of members of Ordinary Shares or the Depositary, the Company shall promptly after the effectiveness of the Registration Statement cause an opinion of legal counsel as to the effectiveness of the Registration Statement to be delivered to such agent
or the Depositary, together with any other authorizations, certificates and directions requested by such agent or the Depositary, which authorize and direct such agent or the Depositary to issue such Registrable Securities without legend upon sale
by the Investor under the Registration Statement. 
 (c) The Company understands that each Holder disclaims being an underwriter, but in the
event any Holder is deemed an underwriter, the Company shall not be relieved of any obligations it has hereunder. 
 8.17 Review by
Counsel. In connection with the preparation and filing of each Registration Statement registering Registrable Securities under the Securities Act, each Holder and its counsel shall be permitted to review such Registration Statement and each
Prospectus included therein or filed with the SEC, and each amendment thereof or supplement thereto a reasonable period of time (but not less than ten (10) Business Days) prior to their filing with the SEC. 

8.18 Indemnification relating to Securities Violations. 

(a) By the Company. The Company shall indemnify and hold harmless any Holder, its officers, directors, employees, members,
partners, and advisors and its respective Affiliates, each broker or any other Person acting on behalf of such Holder and each other Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act or the Exchange
Act against all losses, claims, damages, liabilities, or actions joint or several (or actions in respect thereof), to which any of the foregoing Persons may become subject under the Securities Act, the Exchange Act or other federal or state
securities Law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i) any
untrue statement or alleged untrue statement of a material fact contained in such Registration Statement including any Prospectus contained therein or any amendments or supplements thereto; (ii) any omission or alleged omission to state therein a
material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any federal or state securities Law or any
rule or regulation promulgated under the Securities Act, the Exchange Act or any federal or state securities Law in connection with such registration statement; and the Company will reimburse such Holder and each such officer, director, employee,
member, partner, and advisor and their respective Affiliates, each broker or any other Person acting on behalf of such Holder or controlling Person for any legal or other expenses reasonably incurred by them in connection with defending any such
loss, claim, damage, liability or action; provided, however, the indemnity agreement contained in this Section 8.18(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the written consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises
out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such foregoing Person. 

  
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 (b) By the Holder. Each Holder shall, severally and not jointly, indemnify and hold
harmless the Company, each of its directors, each of its officers who have signed the registration statement, each other Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act, against all losses,
claims, damages or liabilities (joint or several) to which the Company or any such foregoing Person may become subject under the Securities Act, the Exchange Act or other federal or state Law, insofar as such losses, claims, damages or liabilities
(or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder under
an instrument duly executed by such Holder and stated to be expressly for use in connection with such registration; and such Holder will reimburse any legal or other expenses reasonably incurred by the Company or any such foregoing Person in
connection with defending any such loss, claim, damage, liability or action; provided, however, the indemnity agreement contained in this Section 8.18(b) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the written consent of the such Holder (which consent shall not be unreasonably withheld); provided, further, the total amounts payable in indemnity by such Holder
under this Section 8.18(b) and Section 8.18(d) in respect of any Violation shall not exceed the net proceeds actually received by the Investor upon the sale of the Registrable Securities out of which such Violation arises. 

(c) Notice. Promptly after receipt by an indemnified party under this Section 8.18 of notice of the commencement of any
action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 8.18, deliver to the indemnifying party a written notice of the
commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel
mutually satisfactory to the parties; provided, however, an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party
by the counsel retained by the indemnifying party would be inappropriate due to actual or potential conflict of interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this
Section 8.18. 
 (d) Contribution. If the indemnification provided for in this Section 8.18 is held by a court of
competent jurisdiction to be unavailable to an indemnified party with respect to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party thereunder, shall to the extent
permitted by applicable Law contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the
one hand and of the indemnified party on the other in connection with the Violation(s) that resulted in such loss, claim, damage or liability, as well as any other relevant equitable considerations. The relative fault of the indemnifying party
and of the indemnified party shall be determined by a court of Law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to
information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided, however, in
no event shall any contribution by the Investor hereunder, when combined with any amounts paid or payable by the Investor pursuant to Section 8.18(b) hereof, exceed the net proceeds actually received by the Investor upon the sale of the
Registrable Securities out of which such Violation arises. 
 (e) Survival. The obligations of the Company and the Holders under
this Section 8.18 shall survive the completion of any offering of Registrable Securities in a Registration Statement, and otherwise. 

  
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 8.19 Rule 144 Reporting. The Company shall, in order to enable any Holder to sell the
Registrable Securities under Rule 144 of the Securities Act and for so long as any Holder owns any Registrable Securities, use its best efforts to (i) comply with the requirements of Rule 144, including without limitation, the requirements
of Rule 144(c)(1) with respect to public information about the Company and to its timely filing of all reports required to be filed under the Exchange Act and (ii) furnish to any Holder upon request (A) a written statement by the Company
that it has complied with the reporting requirements of the Exchange Act and (B) a copy of the most recent public periodic report of the Company and such other reports and documents of the Company as any Holder may reasonably request in availing
itself of any rule or regulation of the SEC allowing any Holder to sell any such securities without registration. 
 8.20 Further
Assurances. Each of the Parties shall cooperate and consult with each other and use commercially reasonable efforts to prepare and file all necessary documentation, to effect all necessary applications, notices, petitions, filings and other
documents, and to obtain all necessary permits, consents, orders, approvals and authorizations of, or any exemption by, all third Persons required to consummate the transactions contemplated by this Agreement. 

8.21 Fees and Expenses. 

(a) Upon the Closing, the Company shall be liable to pay or reimburse the Investor for all costs and expenses incurred by the Investor or its
designee in relation to the transactions contemplated in this Agreement and the other Transaction Documents, including, without limitation, the financial advisory fee and all costs and expenses for the purposes of conducting legal, financial,
commercial and technical due diligence and preparing, negotiating, executing and delivering the Transaction Documents (including any amendments thereof) and related professional work (including but not limited to fees and expenses of the
Investor’s counsels and advisers and other out-of-pocket costs and administration expenses) (such expenses and costs, the “Reimbursable Expenses”); provided that such Reimbursable Expenses shall not exceed US$200,000. 

(b) In the event that the Closing has not occurred as provided under this Agreement and the Investor elects to terminate this Agreement due to
the failure of the fulfillment of any of the conditions set forth in Section 6 for reasons attributable to any Warrantor, the Company shall be liable to pay or reimburse the Investor for the Reimbursable Expenses reasonably incurred which
shall not exceed US$400,000, provided that the Investor provides written evidence to the Company. 
 8.22 Equity
Pledge. The Warrantors shall procure that the relevant MOFCOM approval on the equity pledge contemplated under the Equity Pledge Agreements shall have been obtained within forty (40) Business Days after the Closing Date. The Warrantors
shall procure that the filing and registration with the relevant administration of industry and commerce with regard to the equity pledge contemplated under the Equity Pledge Agreements shall have been completed within fifty (50) Business Days after
the Closing Date. 

  
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 9. LTV Adjustment, Release of Security and Change of Pledgee or Mortgagee 

9.1 Valuation Process. If as of any Potential Adjustment Date the Outstanding Principal is less than or equal to the Applicable
Threshold, then within 30-day period after such Potential Adjustment Date, the Company may, by giving a written notice to the Investor, invoke the valuation process of the Mortgaged Properties (the “Valuation Process Notice”).
Within ten (10) Business Days after the Investor receives the notice from the Company invoking the valuation process, each of the Investor and the Company shall respectively appoint a valuation firm to assess the value of the Mortgaged Properties.
These two appointed valuation firms shall conduct the valuation and produce a valuation report within thirty (30) Business Days after the Investor receives the Valuation Process Notice. The Company and the Investor shall each deliver to the other
party its own valuation report. The final valuation of the Mortgaged Properties shall be the mid-point of the two valuations set forth in these reports (the “Final Valuation”). If either the Company or the Investor fails to appoint
a valuation firm that accepts its appointment in the relevant ten (10) Business Days’ period, the appointed valuation firm fails to produce a valuation report within the relevant thirty (30) Business Days’ period or such report fails to
set forth a valuation of the Mortgaged Properties, the valuation set forth in the valuation report produced by the valuation firm appointed by the other party shall be the Final Valuation. 

9.2 Mortgage Release. Within five (5) Business Days after the Final Valuation is available, the Company may, by giving a written notice
to the Investor, request the Investor to cause the mortgage in respect to a portion of the Mortgaged Properties to be released, such that the valuation of the remaining mortgaged portion of the Mortgaged Properties (the “Remaining Mortgaged
Properties”) is at least twice of the Outstanding Principal based on the Final Valuation; 
 9.3 Redemption. Within five (5)
Business Days after the receipt of the written notice as set forth in Section 9.2, the Investor may require the Company to redeem all or any portion of the then outstanding Notes in accordance with the relevant Conditions of the Notes. 

9.4 Partial Release. If the Investor does not choose to redeem all of the then outstanding Notes as provided under Section 9.3
above, by (i) the date which is fifteen (15) Business Days after the Investor’s receipt of the written notice as set forth in Section 9.2 if the Investor does not choose to redeem the Notes in accordance with Section 9.3 above; or (ii)
if the Investor chooses to redeem the Notes in accordance with Section 9.3 above, the later of (A) the date which is fifteen (15) Business Days after the Investor’s receipt of the written notice as set forth in Section 9.2 and (B) the
date when the Company completes the partial redemption of the Notes as requested by the Investor in accordance with Section 9.3, the Investor shall cause the mortgage in respect of a portion of the Mortgaged Properties to be released, such
that the valuation of the Remaining Mortgaged Properties based on the Final Valuation shall be at least twice of the Outstanding Principal as of the date of and immediately subsequent to the partial release of the Mortgaged Properties;
provided that such release shall be subject to that (i) all the required approvals, including the approval to split the land use rights certificate, to effect such release shall be obtained and (ii) the mortgage with respect to the Remaining
Mortgage Properties shall continue to be effective. 
 9.5 Release of Security. If the Maturity Date (as defined in the Conditions of
the Notes) of any Notes are extended to the Extended Maturity Date (as defined in the Conditions of the Notes) in accordance with the Conditions of the Notes and the Outstanding Principal amount is less than US$10,000,000 on the Maturity Date, the
Investor shall cooperate with the Security Providers to release the Security Providers from their respective obligations under the Security Documents within 30 Business Days after the Maturity Date. 

9.6 Change of Pledgee or Mortgagee. The change of the pledgee under the Equity Pledge Agreements or the mortgagee under the Onshore
Mortgages shall be subject to the prior consent of the Company, which shall not be unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing, as long as the beneficiary of the Onshore Mortgages is Shanghai Shengye, the change
of the mortgagee shall not be subject to the prior consent of the Company. 

  
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 10. Indemnification. 

10.1 Survival of Representations, Warranties, Covenants and Agreements. Notwithstanding any investigation or examination conducted with
respect to, or any knowledge acquired (or capable of being acquired) about, the accuracy or inaccuracy of any representation or warranty made by or on behalf of the Parties, all representations and warranties contained in this Agreement, the other
Transaction Documents or any certificate delivered in connection herewith and therewith shall be deemed to be material and to have been relied upon by the Parties. The representations and warranties set forth under Section 4 and any covenants
and agreements of any Warrantor contained in or made pursuant to this Agreement shall survive after the Closing, if any, until such date when no Notes or Warrants are outstanding and all obligations of the Warrantors under the Transaction Documents
have been fully performed and discharged, or until they are terminated as a matter of applicable Law. 
 10.2 Indemnification. Each
of the Warrantors (collectively, the “Indemnifying Party”) shall jointly and severally indemnify, defend and hold harmless the Investor and its directors, officers, employees, Affiliates, agents, assigns and transferees (each an
“Indemnified Party”) from and against any Liabilities, judgments, fines and expenses of any kind or nature whatsoever, including any investigative, legal and other expenses and any amounts paid in settlement suffered or incurred by
any Indemnified Party (collectively, “Losses”) resulting from or arising out of (a) any inaccuracy or breach of any representation or warranty of the Indemnifying Party contained in this Agreement, any other Transaction Document or
any certificate delivered by or on behalf of the Company in connection herewith or therewith, or (b) any breach of any covenant or agreement of the Company contained in this Agreement, any other Transaction Document or any certificate delivered by
and on behalf of the Company in connection herewith or therewith (each, a “Breach”), provided that the Company’s maximum liability under this Section 10 shall not exceed an amount equal to US$45 million. 

10.3 Materiality Determination. 

(a) Notwithstanding anything to the contrary in this Agreement and for the avoidance of doubt, for purposes of the indemnification provisions
in Section 10.2, any determination of whether any breach of a representation or warranty has occurred under this Agreement shall be made in strict accordance with the terms of the relevant representation or warranty, taking into account any
and all “materiality” or “Material Adverse Effect” qualifiers or words of similar import contained therein. 
 (b) Once
a breach is determined to have occurred in accordance to Section 10.3(a), for the purpose of determining the amount of Losses resulting from such breach, any “materiality” or “Material Adverse Effect” qualifiers or words
of similar import contained in such representation or warranty shall in each case be disregarded and not be given effect (as if such standard or qualification were deleted from such representation or warranty). 

  
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 10.4 Indemnified Party. Subject to this Section 10, the amount of any payment to
any such Indemnified Party shall be sufficient to make such Indemnified Party whole for any diminution in value of the Securities held by it directly resulting from such breach. Any indemnity referred to in this Section 10 for a Breach shall
be such as to place the Indemnified Party in the same position as it would have been in had there not been any Breach under which the Indemnified Party is to be indemnified. 

10.5 Notice of Claims; Procedures. If any Indemnified Party makes any claim against the Indemnifying Party for indemnification under
this Section 10, the claim shall be in writing and shall state in general terms the facts upon which such Indemnified Party makes the claim and shall pay the amount payable under the claim in accordance with Section 10.7. If the
Indemnifying Party does not notify the Indemnified Party in writing within twenty (20) Business Days from receipt of such claim that the Indemnifying Party disputes such claim, the Indemnifying Party shall be deemed to have accepted and agreed with
such claim. In the event of any claim or demand asserted against an Indemnified Party by a third party upon which the Indemnified Party may claim indemnification, the Indemnifying Party shall give written notice to the Indemnified Party within
twenty (20) Business Days after receipt from the Indemnified Party of such claim or demand, indicating whether the Indemnifying Party intends to assume the defense of the claim or demand. If the Indemnifying Party assumes the defense, the
Indemnifying Party may not agree to any compromise or settlement to which the Indemnified Party has not consented in writing. If the Indemnifying Party elects not to assume the defense or fails to make such an election within the twenty (20)
Business Day period, or otherwise fails to continue the defense of the Indemnified Party reasonably and in good faith, the Indemnified Party may assume the defense thereof at the expense of the Indemnifying Party, and a recovery against the
Indemnified Party suffered by it in good faith shall be conclusive in its favor against the Indemnifying Party. 
 10.6
Investigation. The representations, warranties, covenants and agreement of the Indemnifying Parties, and any Indemnified Party’s right to indemnification with respect thereto, shall not be affected or deemed waived by reason of any
investigation made by or on behalf of any Indemnified Party or by reason of the fact that the Indemnified Party knew or should have known that any such representation or warranty is, was or might be inaccurate or by reason of any Indemnified
Party’s waiver of any condition set forth in Section 6. 
 10.7 Payment. Upon the earlier to occur of (i) the
agreement of the Indemnifying Party to pay the amount claimed by an Indemnified Party in a claim notice, or (ii) a final determination of an arbitration tribunal of competent jurisdiction as provided for in Section 12.2 that any amount is
payable by an Indemnifying Party hereunder, such Indemnifying Party shall pay the Indemnified Party as soon as commercially practicable but in no event more than five (5) Business Days thereafter. 

11. Termination 
 11.1 Effective Date.
This Agreement shall become effective upon execution and shall continue in force until terminated in accordance with Section 11.2. 

11.2 Termination. This Agreement may be terminated and the transactions contemplated may be abandoned at any time, but no later
than the Closing Date: 
 (a) by mutual written consent of the Parties; 

(b) by the Investor or any of the Warrantors if an injunction, restraining order or decree of any nature of any Governmental Authority of
competent jurisdiction is issued that prohibits the consummation of the transactions contemplated hereby due to reasons other than a fault of such Party; 

  
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 (c) by the Investor if any of the Warrantors shall have breached, in any material respect, any of
its representations, warranties, covenants or other obligations under this Agreement or any other Transaction Document and such breach shall be incapable of cure or has not been cured within fourteen (14) days following the giving of written notice
of such breach to the breaching Party; 
 (d) by the Warrantors if the Investor shall have breached, in any material respect, any of its
representations, warranties, covenants or other obligations under this Agreement or any other Transaction Document and such breach shall be incapable of cure or has not been cured within fourteen (14) days following the giving of written notice of
such breach to the breaching Party; or 
 (e) by the Investor if the closing conditions set forth in Section 6 are not fulfilled or
waived by the Investor on or before the Long Stop Date, in which case the Investor may, at its option, without prejudice to its rights hereunder and under applicable Laws: 

(i) defer the Closing to a later date; 

(ii) proceed to the Closing in respect of purchase of the Notes and Warrants so far as practicable but subject to such conditions as the
Investor may determine at its sole discretion; or 
 (iii) terminate this Agreement in accordance with this Section 11.2. 

11.3 Survival. If this Agreement is terminated in accordance with Section 11.2, it shall become void and of no further
force and effect, except for the provisions of Section 8.5 (Public Disclosure), Section 8.6 (Confidentiality), Section 8.21 (Fees and Expenses), Section 10 (Indemnification), this Section 11.3, Section 12.1
(Governing Law) and Section 12.2 (Arbitration); provided, however, that such termination, unless otherwise agreed to by the Investor, on the one hand, or the Company, on the other hand, shall be without prejudice to the rights
or obligations of any Party in respect of a breach of this Agreement prior to such termination. 
 12. Miscellaneous 

12.1 Governing Law. This Agreement shall be governed in all respects by the Laws of the State of New York without regard to any
choice of Laws or conflict of Laws provisions that would require the application of the Laws of any other jurisdiction. 
 12.2
Arbitration. 
 (a) Any dispute, controversy, difference, proceedings or claim arising out of or relating to this Agreement,
including the existence, validity, interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally resolved by arbitration administered
by the Hong Kong International Arbitration Centre (“HKIAC”) under the Hong Kong International Arbitration Centre Administered Arbitration rules in force when the notice of arbitration is submitted. 

(b) The seat of arbitration shall be Hong Kong. The number of arbitrators shall be three. The arbitration proceedings shall be conducted in
English. 
 (c) The arbitrators shall decide any dispute submitted by the parties to the arbitration strictly in accordance with the
substantive Law of New York and shall not apply any other substantive Law. 

  
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 (d) Each of the Parties shall cooperate with any party to the dispute in making full disclosure
of and providing complete access to all information and documents requested by such party in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on the party receiving the request. 

(e) The award of the arbitration tribunal shall be final and binding upon the disputing parties, and any party to the dispute may apply to a
court of competent jurisdiction for enforcement of such award. 
 (f) The Parties waive any objection, on the basis of any decision to join
an additional party to the arbitration, to the validity and/or enforcement of any award made by the arbitral tribunal in the arbitration, in so far as such waiver can validly be made. 

(g) The Parties waive any objection, on the basis of HKIAC’s decision to consolidate arbitrations involving claims arising out of or in
connection with this Agreement and/or other Transaction Documents (with the exception of the Loan Agreement and the Onshore Mortgages), to the validity and/or enforcement of any award made by the arbitral tribunal in the consolidated proceedings, in
so far as such waiver can validly be made. 
 (h) The Parties waive any objection, on the basis of the commencement of a single arbitration
involving claims arising out of or in connection with this Agreement and/or other Transaction Documents (with the exception of the Loan Agreement and the Onshore Mortgages), to the validity and/or enforcement of any award made by the arbitral
tribunal in the arbitration, in so far as such waiver can validly be made. 
 12.3 Remedies. The Parties agree that irreparable
damage would occur in the event that the breaching party does not perform the provisions of this Agreement in accordance with its specified terms or otherwise breach such provisions. Accordingly, the Parties acknowledge and agree that the
non-breaching party shall be entitled to seek a preservation order, an injunction, specific performance and other equitable or interim relief to prevent breaches of this Agreement by the breaching party and to enforce specifically the terms and
provisions hereof, this being in addition to any other remedy to which they are entitled at law or in equity. The breaching party agrees that it will not oppose the granting of an injunction, specific performance and other equitable relief to the
non-breaching party on the basis that (a) the non-breaching party has an adequate remedy at law or (b) an award of specific performance is not an appropriate remedy for any reason at law or equity. In seeking an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, the non-breaching party shall not be required to provide any bond or other security in connection with any such order or injunction. The remedies
available to the Investor pursuant to this Section 12.3 shall be in addition to any other remedy to which it is entitled at law or in equity, and the election to pursue an injunction or specific performance shall not restrict, impair or
otherwise limit the non-breaching party from, in the alternative, seeking to terminate this Agreement and collect a remedy at law. 
 12.4
Successors and Assigns. 
 (a) Except as otherwise provided in this Agreement, the provisions of this Agreement shall inure to the
benefit of and be binding upon, the successors, assigns, heirs, executors, and administrators of the Parties. No Party may assign its rights or obligations under this Agreement without the prior written consent of each other Party, and any purported
assignment without such consent shall be void and without effect; provided that the Investor and each of its assignees may assign this Agreement or any of its rights or duties hereunder to any of its Affiliates or to any transferee of all or
any portion of the Note or Warrant. 
 (b) In respect of any transfer by the Investor or any other Holder, as the case may be, to any
Person, the Investor or such Holder (as the case may be) shall procure that, prior to the transfer, such Person enters into a joinder agreement substantially in the form attached hereto as Exhibit F agreeing to be bound by this Agreement.

  
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 12.5 No Third-Party Beneficiaries. Notwithstanding anything contained in this
Agreement to the contrary, nothing in this Agreement, expressed or implied, is intended to confer on any Person other than the Parties any rights, remedies, obligations or liabilities under or by reason of this Agreement, and no Person that is not a
Party to this Agreement (including any partner, member, stockholder, director, officer, employee or other beneficial owner of any Party, in its own capacity as such or in bringing a derivative action on behalf of a party) shall have any standing as
third-party beneficiary with respect to this Agreement or the transactions contemplated by this Agreement. 
 12.6 No Personal Liability
of Directors, Officers, Owners, Etc. No director, officer, employee, incorporator, stockholder, managing member, member, general partner, limited partner, principal or other agent of any of the Parties shall have any liability for any
obligations of such Party under this Agreement or for any claim based on, in respect of or by reason of the respective obligations of such Party under this Agreement. Each Party hereby waives and releases all such liability. This waiver and release
is a material inducement to each Party’s entry into this Agreement. 
 12.7 Entire Agreement. This Agreement and the other
Transaction Documents constitute the full and entire understanding and agreement among the Parties with regard to the subjects hereof and thereof. 

12.8 Notices. Except as otherwise provided in this Agreement, all notices, requests, claims, demands, waivers and other
communications required or permitted under this Agreement shall be in writing and shall be mailed by reliable overnight delivery service or delivered by hand, facsimile, electronic mail or messenger as follows: 

if to the Company or the Security Providers: 

c/o The9 Limited 
 Building
No. 3, 690 Bibo Road 
 Zhang Jiang Hi-Tech Park 

Pudong New Area, Pudong 
 Shanghai
201203 
 People’s Republic of China 

Facsimile number: +86-21-5172-9903 

Attention: Hong Bo SUN, Senior Legal Manager 

if to the Investor: 
 c/o Ark
Pacific Capital Management Limited 
 Suite 62, 6/F, New Henry House 

10 Ice House Street, Central, Hong Kong 

Facsimile number: +852 3585 0312 

Attention: Mr. S. H. Lam 
 E-mail:
shlam@arkpacific.hk 

  
 40 

 or in any such case to such other address, facsimile number, electronic mail address or telephone as any Party
may, from time to time, designate in a written notice given in a like manner. Notices shall be deemed given when actually delivered by overnight delivery service, hand or messenger, or when received by facsimile if promptly confirmed. 

12.9 Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any Party under this Agreement
shall impair any such right, power, or remedy of such Party, nor shall it be construed to be a waiver of or acquiescence to any breach or default, or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default. All remedies, either under this Agreement or by Law or otherwise afforded to any holder, shall be cumulative and not alternative. 

12.10 Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be
waived (either generally or in a particular instance and either retroactively or prospectively), only if such amendment or waiver is in writing and signed, in the case of an amendment, by the Company, on behalf of itself and the Security Providers,
and the Investor or, in the case of a waiver, by the Party against whom the waiver is to be effective. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any securities purchased under this
Agreement at the time outstanding (including securities into which such securities are convertible), each future holder of all such securities and the Warrantors. 

12.11 Counterparts. This Agreement may be executed in any number of counterparts and signatures may be delivered by facsimile or
in electronic format, each of which may be executed by less than all the parties, each of which shall be enforceable against the parties actually executing such counterparts and all of which together shall constitute one instrument. 

12.12 Severability. If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable, or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement and the balance of this Agreement shall be enforceable in accordance with its terms. 

[The remainder of this page has been intentionally left blank.] 

  
 41 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

  

			
	COMPANY:
	
	THE9 LIMITED
		
	By:	 	 /s/ George Lai

	Name:	 	George Lai
	Title:	 	Chief Financial Officer

  
 [Signature Page to
Convertible Note and Warrant Purchase Agreement] 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

  

			
	SECURITY PROVIDERS:
	
	GAMENOW.NET (HONG KONG) LIMITED
		
	By:	 	 /s/ Jun Zhu

	Name:	 	Jun Zhu
	Title:	 	Director
	
	CHINA THE9 INTERACTIVE LIMITED
		
	By:	 	 /s/ Jun Zhu

	Name:	 	Jun Zhu
	Title:	 	Director
	
	 CHINA THE9 INTERACTIVE (SHANGHAI) LIMITED

	[With company seal of China The9 Interactive (Shanghai) Limited]
		
	By:	 	 /s/ Wei Ji

	Name:	 	Wei Ji
	Title:	 	
	
	THE9 COMPUTER TECHNOLOGY CONSULTING (SHANGHAI) CO., LTD.

	[With company seal of The9 Computer Technology Consulting (Shanghai) Co., Ltd.]
		
	By:	 	 /s/ Wei Ji

	Name:	 	Wei Ji
	Title:	 	
	
	SHANGHAI THE9 INFORMATION TECHNOLOGY CO., LTD.

	[With company seal of Shanghai The9 Information Technology Co., Ltd.]
		
	By:	 	 /s/ Wei Ji

	Name:	 	Wei Ji
	Title:	 	

  
 [Signature Page to
Convertible Note and Warrant Purchase Agreement] 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

  

			
	INVESTOR:
	
	SPLENDID DAYS LIMITED
		
	By:	 	 /s/ Lau Tak Kei Arthur

	Name:	 	Lau Tak Kei Arthur
	Title:	 	Director

  
 [Signature Page to
Convertible Note and Warrant Purchase Agreement] 

 Schedule 1 

Security Providers 
  

			
	 Name
	  	 Jurisdiction of Incorporation

		
	GameNow.net (Hong Kong) Limited	  	Hong Kong
		
	China The9 Interactive Limited	  	Hong Kong
		
	China The9 Interactive (Shanghai) Ltd.

	  	PRC
		
	The9 Computer Technology Consulting (Shanghai) Co., Ltd.

	  	PRC
		
	Shanghai The9 Information Technology Co., Ltd.

	  	PRC

 Schedule 2 

List of Mortgaged Properties 

 Schedule 3 

Disclosure Schedule 

 Exhibit A 

Form of the Notes 

 Exhibit A – Form of the Notes 

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO
WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED OR ASSIGNED: (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS, OR (B) AN OPINION OF COUNSEL, IN FORM REASONABLY ACCEPTABLE TO
THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES LAWS; OR (II) UNLESS THE SECURITIES HAVE BEEN SOLD PURSUANT TO RULE 144 OR ANOTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 

THE9 LIMITED 

12.00% Senior Convertible Note 
  

			
	Issuance Date: [●], 2015	  	Principal Amount: [●]

 FOR VALUE RECEIVED, the undersigned, The9 Limited, an exempted company incorporated with limited liability and existing under
the laws of the Cayman Islands (the “Company”), hereby promises to pay, subject to the terms and conditions of this Senior Convertible Note (this “Note”), to the order of Splendid Days Limited (together with any
permitted transferee, the “Holder” and collectively with holders of any other Notes, the “Holders”), the aggregate principal amount of [●] United States Dollars (US$●) (as may be reduced pursuant to the
terms hereof, the “Principal”) when due, whether upon the Maturity Date or the Extended Maturity Date (as defined below), earlier redemption or on any earlier date as the Principal may become due and payable pursuant to the terms of
this Note and to pay Interest (as defined below) on any outstanding Principal, from the date set forth above (the “Issuance Date”) until the same becomes due and payable, whether upon the Maturity Date, the Extended Maturity Date,
acceleration, conversion, redemption or otherwise (in each case in accordance with the terms hereof) and to pay all other amounts payable pursuant to the terms of this Note (in each case in accordance with the terms hereof). 

This Note is issued pursuant to, and in accordance with, that certain Convertible Note and Warrant Purchase Agreement, dated November [●], 2015, by and
among the Company and the other parties named therein (as amended, supplemented or modified from time to time, the “Purchase Agreement”) and other documents contemplated therein and, along with any such other notes having the same
terms and conditions hereof and issued pursuant to the Purchase Agreement or the terms hereof, form a single series (collectively, the “Notes”). 

The ADSs issuable upon conversion of this Note are “Registrable Securities,” as defined in the Purchase Agreement. 

 1. Rank. The Notes are (a) general obligations of the Company, secured by the
property mortgage and equity pledge as provided under the Security Documents, (b) senior in right of payment to any existing and future obligations of the Company expressly subordinated in right of payment to the Notes; (c) at least
pari passu in right of payment with all existing and future unsecured, unsubordinated Indebtedness of the Company (subject to any priority rights of such unsubordinated Indebtedness pursuant to applicable law) and (d) effectively
subordinated to the other secured obligations (if any) of the Company to the extent of the value of the assets serving as security therefor. 

2. Maturity. 
 (a) Subject
to the Holder’s right to convert the Principal in accordance with Section 4 and the Company’s right to redeem the Note in accordance with Section 8, on the Maturity Date or, in the event the Holder exercises its option to extend
the Maturity Date in accordance with Section 2(c) of this Note, the Extended Maturity Date, the Company shall pay to the Holder an amount in cash equal to (i) the Principal, plus (ii) all accrued and unpaid Interest in relation to
such Principal. Upon receipt of such payment in full, the Holder shall surrender this Note to the Company (or provide to the Company such evidence of the loss, theft, destruction or mutilation of this Note as contemplated in Section 14(c)). The
“Maturity Date” shall be the third anniversary of the Issuance Date. 
 (b) Subject to Section 8 of this Note, the
Company may not prepay all or any part of the amounts outstanding under this Note at any time without the express written consent of the Holder. 

(c) The Holder may, in its sole and absolute discretion, extend the Maturity Date with respect to all or any portion of the Note to the fifth
anniversary of the Issuance Date (the “Extended Maturity Date”) by delivering the Company an extension notice no later than seven (7) Business Days before the Maturity Date. 

3. Interest; Interest Rate. 

(a) The Company shall pay interest (“Interest”) on any outstanding Principal at a rate equal to twelve percent
(12.00%) per annum (the “Interest Rate”) from the Issuance Date until such Principal becomes due and payable in accordance with, and subject to, the terms of this Note. 

(b) For the period from the Issuance Date to the Maturity Date, Interest on any outstanding Principal shall be computed on the basis of a
360-day year and actual days elapsed, and shall be payable when such Principal becomes due and payable, whether upon the Maturity Date, acceleration, redemption, conversion or otherwise (“Interest Payment Date”) in cash. 

(c) For the period from the Maturity Date (excluding the Maturity Date) to the Extended Maturity Date (the “Extension
Period”), no Interest shall be accrued and the aggregate of the outstanding Principal of the Notes plus any accrued Interest as of the Maturity Date shall constitute the total principal of the Notes (as may be reduced pursuant to the terms
hereof, the “Extended Principal”). For the avoidance of doubt, the term of “Principal” referred to in the Notes other than in this Section 3(c) during the Extension Period shall mean the Extended Principal. For the
avoidance of doubt, the Principal referred to in Section 2(d) above shall mean the Extended Principal. 
 (d) Notwithstanding anything to
the contrary in Section 3(b) of this Note, when any outstanding Principal amount is converted into ADSs in accordance with Section 4, all accrued and unpaid Interest in relation to such Principal amount (that is being converted) shall be
deemed to be waived by the Holder. 

  
 2 

 4. Conversion. This Note shall be convertible into the Company’s ADSs on the terms
and conditions set forth in this Section 4. 
 (a) Conversion Right. At any time or times on or after the Issuance Date until
and including the seventh (7th) Business Day immediately preceding the Maturity Date or the Extended Maturity Date, the Holder shall be entitled, at the Holder’s option, to convert the Principal of this Note, or any portion of the
Principal which is an integral multiple of US$50,000, into ADSs representing fully paid, validly issued and non-assessable Shares, in accordance with Sections 4(b) and 4(c) provided that at no time shall the Holder convert any portion of the
Principal if subsequent to such conversion such Holder will hold more than 20% of the outstanding and issued Shares of the Company. The Company shall not issue any fraction of an ADS upon any conversion, but an adjustment and payment in cash will be
made, as provided in the Purchase Agreement, in respect of any fraction of an ADS which would otherwise be issuable upon the surrender of this Note for conversion. The Company shall pay any and all transfer taxes and fees that may be payable with
respect to the issuance and delivery of the ADSs upon conversion of any Principal amount, unless the tax is due because the Company is requested to issue such ADSs in a name other than the Holder’s name, in which case the Holder shall pay that
tax, and no such issuance or delivery shall be made unless and until the person requesting such issuance has paid to the Company the amount of any such tax or duty, or has established to the satisfaction of the Company that such tax or duty has been
paid. 
 (b) Conversion into ADSs. 

(i) The number of ADSs issuable upon conversion of any Principal amount being converted pursuant to this Note shall be determined by dividing
(x) such Principal amount being converted by (y) the then applicable Conversion Price, as adjusted by the then applicable ADS-to-Share ratio. 

(ii) “Conversion Price” means US$[●] per Share, subject to adjustment as provided herein. 

(c) Conversion Mechanics. 

(i) To convert any Principal amount into ADSs on any date (a “Conversion Date”), the Holder shall (A) transmit by
facsimile (or otherwise deliver), for receipt on or prior to 5:00 p.m., Beijing time on such date, a copy of a fully executed and completed notice of conversion in the form attached hereto as Exhibit I (the “Conversion
Notice”), to the Company, and (B) surrender to a common carrier for delivery to the Company as soon as practicable following such Conversion Date (but in no event later than two (2) Business Days after the Conversion Date), the
original certificate or certificates representing this Note (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction as contemplated by Section 14(c)) (the “Converted
Certificates”) and the originally executed Conversion Notice. 
 (ii) Upon receipt by the Company of a facsimile copy of a
Conversion Notice, the Company shall immediately send, via facsimile, a confirmation of receipt of such Conversion Notice to the Holder in the form attached hereto as Exhibit II. Upon receipt by the Company of an originally executed
Conversion Notice, the Company shall, as soon as practicable and in no event later than eleven (11) Business Days following the date of receipt by the Company of the originally executed Conversion Notice (the “ADS Delivery
Date”) and representation letters and other documents reasonably requested by the Depositary, cause the ADS Depositary to deliver ADSs to the Holder subject to the applicable securities laws and regulations. 

  
 3 

 (iv) Company’s Failure to Timely Convert. 

(A) If the Holder shall have provided proper notice to the Company pursuant to Section 4(c)(i) and the Company fails to issue to the
Holder the number of ADSs to which such Holder is entitled upon conversion by the ADS Delivery Date (a “Conversion Failure”), then 

(x) the Company shall pay damages to the Holder, for the ADS Delivery Date and each subsequent day on which such Conversion Failure
continues, an amount equal to an annual interest rate of two percent (2.00%) of the product of (I) the sum of the number of ADSs not issued to the Holder on or prior to the ADS Delivery Date and to which the Holder is entitled, times (II)
the Closing Sale Price of the ADSs on the ADS Delivery Date, and (y) the Holder, upon written notice to the Company, may, no later than two Business Days after the ADS Delivery Date, at its sole discretion, void its Conversion Notice with
respect to, and retain or have returned, as the case may be, any portion of this Note that has not been converted pursuant to such Conversion Notice. 

(B) Without prejudice to any other remedies available to the Holder, upon a Conversion Failure, in the event that the Closing Sales Price of
the ADS on the date of the ADS Delivery Date is higher than the Closing Sales Price of the ADS on the actual date of delivery of the required ADSs by the Company, the Holder shall be entitled to an amount equal to the product of (i) the number
of ADSs that the Company fails to deliver to the Holder on the ADS Delivery Date and (ii) the difference between the Closing Sales Price of the ADS on the date of the ADS Delivery Date and the Closing Sales Price of the ADS on the actual date
of delivery of the required ADSs by the Company, to be paid by the Company to the Holder in cash, no later than five (5) Business Days after the actual date of delivery of the required ADSs by the Company. The Holder shall provide the
Company written notice indicating the amounts payable to the Holder in respect of the Conversion Failure. Notwithstanding the foregoing, without prejudice to any other remedies available to the Holder, in the event that a Conversion Failure
continues for twenty (20) Business Days or more after the ADS Delivery Date, the Holder shall be entitled to an amount equal to the product of (i) the number of ADSs that the Company fails to deliver to the Holder on the ADS Delivery Date
and (ii) the Closing Sales Price of the ADS on the date of the ADS Delivery Date , to be paid by the Company to the Holder in cash, no later than five (5) Business Days after notification by the Holder of its election of this option. The
Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Conversion Failure. 
 (C)
In case of a Conversion Failure, the rights of the Holder pursuant to clause (A) above shall be without prejudice to the Holder’s rights under Section 5(a)(ii) and shall be without prejudice to any other rights or remedies available
to the Holder under this Note or under applicable laws in the event of a Conversion Failure. 
 (v) ADSs with Restrictive Legends In
the case of Conversion ADSs issued with any restrictive legends, upon the Company’s receipt of notice and representation letters and other documents reasonably requested by the Depositary from the Holder that (a) Conversion ADSs containing
any restrictive legends have been resold in reliance on an effective resale registration statement relating to the resale of ADSs representing Conversion ADSs or pursuant to Rule 144, or (b) Conversion ADSs containing any restrictive legends
that are beneficially owned by it have become freely tradable pursuant to Rule 144 without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Conversion ADSs and without volume
or manner-of-sale restrictions, accompanied by a certificate or certificates evidencing the Conversion ADSs, if any, that have been sold pursuant to clause (a) above or for which the legend is to be removed pursuant to clause (b) above,
the Company shall within eleven (11) Business Days cause to be issued and delivered for deposit to the ADS Depositary irrevocable instructions that the ADS Depositary deliver ADSs without any restrictive legend with respect to such Conversion
ADSs to or upon the directions of the Holder and such other documents as the ADS Depositary may reasonably require from the Company in connection therewith. From and after the date the Company receives the notice specified in clause (b) above,
Conversion ADSs which are subsequently issued upon conversion of the Note shall not bear a restrictive legend, provided that the conditions specified in clause (b) above are still satisfied at such time. If the Company fails to cause the ADS
Depositary to deliver ADSs representing Conversion ADSs pursuant to the terms of this Note, then the Company shall fully indemnify the Holder for any liabilities, judgments, costs, losses, fines and expenses of any kind the Holder incurs in
connection with such failure. Any fees, including fees of the ADS Depositary, associated with the removal of restrictive legends from any Conversion ADSs and the deposit of Conversion ADSs to the ADS Depositary for the issuance of ADSs shall be
borne by the Company. 

  
 4 

 (vi) No Book-Entry. If only part of the then outstanding Principal of this Note is being
converted, then the Company shall as soon as practicable and in no event later than the ADS Delivery Date and at its own expense, issue and deliver to the converting Holder a new Note (in accordance with Section 14) representing the outstanding
Principal amount not converted. The Person or Persons entitled to receive the ADSs issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such ADSs on the ADS Delivery Date. 

(vii) Registration of Shares. The Company covenants that all Shares, represented by the ADSs issuable upon conversion of the Notes
shall, upon issue, be duly authorized, validly issued, fully paid and non-assessable and, in the case of Conversion ADSs issued pursuant to any Conversion Notice delivered on or after the effective date of the Registration Statement (as defined in
the Purchase Agreement), shall be registered for public resale in accordance with the Purchase Agreement. 
 5. Rights upon Events of
Default. 
 (a) Events of Default. Each of the following events shall constitute an “Event of Default”: 

(i) the occurrence of a Conversion Failure or notice, written or oral, to the Holder, including by way of public announcement or through any
of its agents, at any time, of the Company’s intention not to comply with a request for conversion of any Notes into ADSs that is tendered in accordance with the provisions of the Notes, which has not been cured for a period of five
(5) Business Days; 
 (ii) the Company’s failure to pay to the Holder any amount of Principal when and as due under this Note
(including, without limitation, the Company’s failure to pay any redemption payments or amounts hereunder) or Interest when and as due under this Note and such failure to pay Principal or Interest is not cured within five (5) Business Days
of when such payment is due; 
 (iii) an event of default under, or acceleration following default prior to maturity of, any amount of
Indebtedness of the Company or its Principal Subsidiaries in the amount exceeding US$500,000; 
 (iv) the Company or any of its Principal
Subsidiaries (A) commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect (including, without limitation, any scheme of arrangement), or consents to the entry of an order for relief
in an involuntary case under any such law, (B) consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company or any Principal Subsidiary or
(C) effects any general assignment for the benefit of creditors; 

  
 5 

 (v) an involuntary case or other proceeding is commenced against the Company or any Principal
Subsidiary with respect to it or its debts under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect seeking the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official
of the Company or any Principal Subsidiary or for a majority of the property and assets of the Company or any Principal Subsidiary and such involuntary case or other proceeding remains undismissed and unstayed for a period of 30 consecutive days; or
an order for relief is entered against the Company or any Principal Subsidiary under any applicable bankruptcy, insolvency or other similar law as now or hereafter in effect; 

(vi) except as otherwise set forth in this section 5(a), the Company materially breaches any covenant, representation, warranty or other term
or condition of this Note and, in the case of a material breach of a covenant, representation, warranty, term or condition which can be remedied, only if such breach is not remedied within thirty (30) days of the earlier of (x) the date on
which the Company becomes aware of such breach, and (y) written notice being given to the Company by the Holder specifying such breach, and demanding that it be remedied; 

(vii) the Note shall be (A) illegal or unenforceable in any respect or (B) terminated prior to its scheduled termination date, and
such condition continues for five (5) consecutive Trading Days; 
 (viii) any material breach by the Company or any Security Provider
of any other Transaction Document to which it is a party, which breach, if capable of being remedied, has not been remedied for thirty (30) days after the earlier of (x) the date on which the Company becomes aware of such breach, or
(y) written notice being given to the Company by the Holder specifying the breach, and demanding that it be remedied; 
 (ix) any
Security Provider denies or disaffirms its obligations under any Security Document, or any Security Document is determined to be unenforceable or invalid or shall for any reason cease to be in full force and effect; 

(x) the delisting of the ADSs on the Principal Market; or 

(xi) at any time when any Note remains outstanding, the Company does not have a sufficient number of authorized and unreserved Shares to
satisfy its obligation to reserve for issuance upon conversion of the Notes at least a number of Shares equal to the Required Reserve Amount (“Authorized Share Failure”). 

(b) Default Notice. Upon the Company or any Principal Subsidiary becoming aware of the occurrence of an Event of Default with respect
to this Note or any other Notes, the Company shall immediately deliver a written notice thereof via facsimile, overnight courier or e-mail transmission to the Holder (a “Default Notice”). 

(c) Remedies. If any Event of Default occurs and is continuing, the Required Holders may declare this Note and any other Notes
immediately due and payable by delivering written notice thereof (the “Event of Default Redemption Notice”) to the Company. The Notes shall be redeemed by the Company at a price (the “Event of Default Redemption
Price”) equal to the amount equal to (A) the outstanding Principal plus (B) all accrued and unpaid Interest in relation to the Principal. If the Company fails to redeem the Notes within five (5) Business Days of
receipt of an Event of Default Redemption Notice, the Notes shall accrue Interest at the Interest Rate plus a late payment penalty equal to the lesser of (i) two percent (2.0%) per annum and (ii) the maximum interest rate permitted
under applicable laws (the “Default Rate”). The Holder’s exercise of the remedies described in this Section 5(c) shall be without prejudice to any other rights or remedies available to the Holder under this Note or under
applicable laws if any Event of Default occurs and is continuing. 

  
 6 

 6. Rights upon Issuance of Dividends and Other Corporate Events. 

(a) Cash Dividend. 
 (i)
If the Company pays any Extraordinary Cash Dividend in any financial year, it shall simultaneously pay to the Holder an amount equal to the Excess Dividend Amount multiplied by the number of Shares into which this Note is convertible at the
Conversion Price then in effect on the relevant record date for the payment of such Extraordinary Cash Dividend. 
 (ii)
“Extraordinary Cash Dividend” means any cash dividend to holders of Shares or ADSs that, together with all other cash dividends previously paid to holders of Shares or ADSs in the same financial year, exceeds, on a per Share basis
(after adjusting any cash dividends expressed as an amount per ADS by using the then applicable ADS-to-Share ratio), the Per Share Interest Amount. 

(iii) “Per Share Interest Amount” means an amount equal to (A) the Interest that has accrued and shall accrue pursuant
to Section 3 of this Note in such financial year divided by (B) the number of Shares into which the Note is convertible at the Conversion Price then in effect on the relevant record date. 

(iv) “Excess Dividend Amount” means, in respect of any Extraordinary Dividend, the US$ amount equal to the total amount of
all dividends paid per Share (after adjusting any Extraordinary Dividends expressed as an amount per ADS by using the then applicable ADS-to-Share ratio) in the relevant financial year minus (A) the Per Share Interest Amount and (B) any
Excess Dividend Amount in respect of which a payment has been made to the Holder previously in such financial year pursuant to this Section 6(a). 

(b) Dividend in Kind. If the Company pays any dividend in kind in any financial year to holders of Shares or ADSs, the Company shall
simultaneously pay to the Holder the same dividend in kind on a per Share basis as if the Notes had been converted prior to the relevant record date. 

(c) Other Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any
Fundamental Transaction pursuant to which holders of ADSs or Shares are entitled to receive securities or other assets with respect to or in exchange for ADSs or Shares (a “Corporate Event”), the Company shall make appropriate
provision to ensure that the Holder shall thereafter have the right to receive upon the conversion of this Note, in lieu of Shares or other assets otherwise receivable upon such conversion, such securities or other assets to which the Holder would
have been entitled had such Shares been held by the Holder immediately prior to the consummation of such Corporate Event (without taking into account any limitations or restrictions on the convertibility of this Note). For the avoidance of doubt,
the Holder shall not be permitted to receive such securities or assets pursuant to this Section 6(c) and continue to hold the Notes.

7. Rights upon Issuance of Other Securities. 

(a) Adjustments of Conversion Price upon Stock Splits and Combinations and ADS Ratio Changes. 

(i) If the Company shall at any time or from time to time after the Issuance Date effect a stock split of the outstanding Shares, the
Conversion Price shall be proportionately decreased. For example, a 2:1 stock split shall result in a decrease in the Conversion Price by one half, taking into account all prior adjustments made thereto under this Section 7. If the Company
shall at any time or from time to time after the Issuance Date combine the outstanding Shares, the Conversion Price shall be proportionately increased. For example, a 1:2 combination shall result in an increase in the Conversion Price by a multiple
of 2, taking into account all prior adjustments made thereto under this Section 7. 

  
 7 

 (ii) Any adjustments under this Section 7(a) shall be effective at the close of business on
the date the stock split or combination becomes effective. 
 (b) Adjustments for Dividends and Distributions of Shares. If the
Company shall at any time or from time to time after the Issuance Date make or issue a dividend or distribution payable in Shares, then the Conversion Price shall be decreased as of the time of such issuance or, in the event such record date shall
have been fixed, as of the close of business on such record date, by multiplying the Conversion Price then in effect by a fraction: 
 (i)
the numerator of which shall be the total number of Shares issued and outstanding immediately prior to the time of such issuance; and 

(ii) the denominator of which shall be the total number of Shares issued and outstanding immediately prior to the time of such issuance, plus
the number of Shares issuable in payment of such dividend or distribution. 
 (c) Adjustments for Dilutive Issuances. 

(i) For the purposes of this Section 7(c), the following terms shall have the following definitions. 

“Convertible Securities” means any evidences of Indebtedness, capital stock (other than Shares) or other securities directly
or indirectly convertible into or exchangeable for Shares. 
 “New Securities” means all Shares (directly or in the form of
ADSs), Options or Convertible Securities issued by the Company after the Issuance Date other than (i) the warrants of the Company issued to the Holder in accordance with the Purchase Agreement, (ii) any Shares issued upon the exercise of
such warrants, (iii) with respect only to the three-year period from the Issuance Date to the Maturity Date, any Shares, Options or Convertible Securities that are issued under the Employee Incentive Plan in the amount up to 15% of the
Company’s total outstanding and issued shares on a fully-diluted and converted basis and (iv) with respect to the Extension Period, all Shares, Convertible Securities and Options that are issued under the Employee Incentive Plan. 

(ii) Adjustment of Conversion Price upon Issuance of New Securities. In the event of an issuance of New Securities for a consideration
per Share (as adjusted by the then applicable ADS-to-Share ratio if the consideration per Share for the issuance of New Securities is expressed as an amount per ADS) received by the Company less than the Conversion Price in effect immediately prior
to such issue, then and in such event, such Conversion Price shall be reduced, concurrently with such issue, to a price determined as set forth below: 

NCP = OCP * (OS + (NP/OCP))/(OS + NS) 

  
 8 

 WHERE: 
  

	 	(A)	NCP = the new Conversion Price, 

  

	 	(B)	OCP = the Conversion Price in effect immediately before the issuance of the New Securities, 

  

	 	(C)	OS = the total outstanding Shares immediately before the issuance of the New Securities, 

  

	 	(D)	NP = the total consideration received for the issuance or sale of the New Securities and 

  

	 	(E)	NS = the number of New Securities issued or sold or deemed issued or sold. 

 (iii) Deemed
Issuance of New Securities. In the event the Company at any time or from time to time after the Issuance Date shall issue any Options or Convertible Securities or shall fix a record date for the determination of holders of any series of
securities entitled to receive any such Options or Convertible Securities, then the maximum number of Shares (as set forth in the instrument relating thereto without regard to any provisions contained therein for a subsequent adjustment of such
number) issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities or the exercise of such Options, shall be deemed to be New Securities issued
as of the time of such issue or, in case such a record date shall have been fixed, as of the close of business on such record date, provided that New Securities shall not be deemed to have been issued unless the consideration per Share (determined
pursuant to Section 7(c)(iv) hereof and adjusted by the then applicable ADS-to-Share ratio if the consideration per Share for the issuance of New Securities is expressed as an amount per ADS) of such New Securities would be less than the
Conversion Price, as provided for by Section 7(c)(ii), in effect on the date of and immediately prior to such issue or record date, as the case may be, and provided further that in any such case in which New Securities are deemed to be issued:

 (A) no further adjustment in the Conversion Price shall be made upon the subsequent issue of Convertible Securities or Shares upon the
exercise of such Options or conversion or exchange of such Convertible Securities or upon the subsequent issue of Options for Convertible Securities or Shares; 

(B) if such Options or Convertible Securities by their terms provide, with the passage of time or otherwise, for any change in the
consideration payable to the Company, or change in the number of Shares issuable, upon the exercise, conversion or exchange thereof, the Conversion Price computed upon the original issue thereof (or upon the occurrence of a record date with respect
thereto), and any subsequent adjustments based thereon, shall, upon any such change becoming effective, be recomputed to reflect such change insofar as it affects such Options or the rights of conversion or exchange under such Convertible
Securities; 
 (C) no readjustment pursuant to Section 7(c)(iii)(B) shall have the effect of increasing the Conversion Price then in
effect (as adjusted for any share dividends, combinations, reclassifications or splits with respect to such Shares and the like); and 

  
 9 

 (D) upon the expiration of any such Options or any rights of conversion or exchange under such
Convertible Securities that shall not have been exercised, the Conversion Price computed upon the original issue thereof (or upon the occurrence of a record date with respect thereto) and any subsequent adjustments based thereon shall, upon such
expiration, be recomputed as if: 
 (1) in the case of Convertible Securities or Options for Shares, the only New Securities issued were
the Shares, if any, actually issued upon the exercise of such Options or the conversion or exchange of such Convertible Securities, and the consideration received therefor was the consideration actually received by the Company for the issue of such
exercised Options plus the consideration actually received by the Company upon such exercise or for the issue of all such Convertible Securities that were actually converted or exchanged, plus the additional consideration, if any, actually received
by the Company upon such conversion or exchange; 
 (2) in the case of Options for Convertible Securities, only the Convertible Securities,
if any, actually issued upon the exercise thereof were issued at the time of issue of such Options, and the consideration received by the Company for the New Securities deemed to have been then issued was the consideration actually received by the
Company for the issue of such exercised Options, plus the consideration deemed to have been received by the Company (determined pursuant to Section 7(c)(iv)) upon the issue of the Convertible Securities with respect to which such Options were
actually exercised; and 
 (3) if such record date shall have been fixed and such Options or Convertible Securities are not issued on the
date fixed therefor, the adjustment previously made in the Conversion Price which became effective on such record date shall be canceled as of the close of business on such record date, and thereafter the Conversion Price shall be adjusted pursuant
to this Section 7(c)(iii) as of the actual date of their issuance. 
 (iv) Determination of Consideration. Subject to
applicable laws, for purposes of this Section 7(c), the consideration received by the Company for the issuance of any New Securities shall be computed as follows: 

(A) Cash and Property. Such consideration shall: 

(1) insofar as it consists of cash, be computed at the aggregate amount of cash received by the Company excluding amounts paid or payable for
accrued interest or accrued dividends and excluding any discounts, commissions or placement fees payable by the Company to any underwriter or placement agent in connection with the issuance of any New Securities; 

(2) insofar as it consists of property other than cash, be computed at the fair market value thereof at the time of such issue, as determined
in good faith by the Board and agreed to by the Holder; and 
 (3) in the event New Securities are issued together with other Shares or
securities or other assets of the Company for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (1) and (2) above, as reasonably determined in good faith by the Board and
agreed to by the Holder. 

  
 10 

 (B) Options and Convertible Securities. The consideration per Share received by the
Company for New Securities deemed to have been issued pursuant to Section 7(c)(iii) hereof, relating to Options and Convertible Securities, shall be determined by dividing (i) the total amount, if any, received or receivable by the Company
as consideration for the issue of such Options or Convertible Securities (determined in the manner described in Section 7(c)(iv)(A) above), plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating
thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of
Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities by (ii) the maximum number of Shares (as set forth in the instruments relating thereto,
without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities. 

(d) Other Events. In the event that the Company (or any Subsidiary) takes any action to which the provisions hereof are not strictly
applicable or if any event occurs of the type contemplated by the provisions of Section 7 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other
rights with equity features), which has the direct effect of adversely affecting the Holder’s proportionate interest in the equity of the Company, then, to the extent that the Holder’s proportionate interest in the equity of the Company is
so adversely affected thereby, an appropriate adjustment in the Conversion Price shall be made so as to protect the rights of the Holder under this Note. 

(e) Successive Adjustments; Multiple Adjustments. After an adjustment is made to the Conversion Price under Section 7, any
subsequent event requiring an adjustment under Section 7 shall cause an adjustment to such Conversion Price, as so adjusted. 
 (f)
Certificates as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Price, or the number of Shares issuable upon conversion of this Note, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and deliver to the Holder a certificate setting forth such adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon written
request of the Holder at any time, deliver to the Holder a like certificate setting forth such adjustments and readjustments, the Conversion Price in effect at the time, and the number of Shares and the amount, if any, of other securities or
property which at the time would be received upon the conversion of this Note. 
 8. Redemption. 

(a) The Holder shall have the right, at the Holder’s option, to require the Company to redeem the Notes, in whole or in part, including
any portion thereof which is $50,000 in Principal amount or any integral multiple thereof, on a date selected by the Company (the “Change of Control Redemption Date”), which date is no later than fifteen (15) Business Days, nor
earlier than five (5) Business Days, after the date on which notice of such Change of Control is mailed by the Company, at a price payable in cash equal to one hundred percent (100%) of the outstanding Principal amount of the Notes, plus
all accrued and unpaid Interest through and including the Change of Control Redemption Date. Alternatively, the Holder shall have the right, at the Holder’s option, to receive Equity Securities of the surviving entity in lieu of ADSs upon
conversion of the Notes following a Change of Control of the Company. 
 (b) The Holder shall have the right, at the Holder’s option,
to require the Company to redeem the Notes, in whole or in part, including any portion thereof which is $50,000 in Principal amount or any integral multiple thereof, upon receiving a request from the Company with regard to the release of security in
accordance with Section 9 (LTV Adjustment, Release of Security and Change of Pledgee or Mortgagee) of the Purchase Agreement. The Company shall redeem the Notes within five (5) Business Days after it receives any such redemption notice
from the Holder. 

  
 11 

 9. Avoidance of Obligations. Unless otherwise required by law, the Company shall not, by
amendment of its Charter Documents or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action (including entering into any agreement which
would limit or restrict the Company’s ability to perform under this Note), avoid or seek to avoid the observance or performance of any of the terms of this Note, and shall at all times in good faith carry out all of the provisions of this Note
and take all action as may reasonably be required to protect the rights of the Holder under this Note. 
 10. Reservation of Authorized
Shares. 
 (a) Reservation. The Company shall initially reserve out of its authorized and unissued share capital a number of
Shares for each of the Notes equal to one percent (100%) of the number of Shares as shall be necessary to effect the conversion of each such Note as of the Issuance Date. So long as any of the Notes are outstanding, the Company shall take all
action necessary to reserve and keep available out of its authorized and unissued share capital, solely for the purpose of effecting the conversion of the Notes, one hundred percent (100%) of the number of Shares as shall from time to time be
necessary to effect the conversion of all of the Notes then outstanding, free from any Lien; provided that at no time shall the number of Shares so reserved be less than the number of Shares required to be reserved by the previous sentence (without
regard to any limitations on conversions) (the “Required Reserve Amount”). The initial number of Shares reserved for conversions of the Notes and each increase in the number of Shares so reserved shall be allocated pro rata among
the Holders based on the Principal held by each of the Holders (the “Authorized Share Allocation”). In the event that the Holder shall sell or otherwise transfer any of the Holder’s Notes, each transferee shall be allocated a
pro rata portion of the Holder’s Authorized Share Allocation. Any Shares reserved and allocated to any Person which ceases to hold any Notes shall be allocated to the remaining Holders, pro rata based on the principal amount of the Notes then
held by such holders. 
 (b) Insufficient Authorized Shares. If at any time when any Note remains outstanding, an Authorized Share
Failure occurs, then the Company shall immediately take all action necessary to increase the Company’s authorized share capital to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Notes then outstanding.
Without limiting the generality of the foregoing sentence, if required pursuant to the Charter Documents or applicable law, as soon as practicable after the date of an Authorized Share Failure, but in no event later than forty-five (45) days
after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its holders of Shares for the approval of an increase in the share capital. In connection with such meeting, the Company shall provide each holder of Shares
with a proxy statement and shall use its best efforts to solicit such holders’ approval of such increase in authorized share capital and to cause the Board to recommend to the holders of Shares that they approve such proposal. 

11. General Covenants. 

(a) Corporate Existence. The Company shall, and shall cause each of its Subsidiaries to, maintain its corporate existence, excluding
creations of and mergers among Subsidiaries of the Company and excluding non-operating Subsidiaries. 

  
 12 

 (b) Compliance with Laws. 

(i) The Company shall, and shall cause each of its Subsidiaries to, (A) comply with all applicable laws, ordinances, rules, regulations
and requirements of any Governmental Authorities in all material aspects, including, without limitation, the requirements of (1) the Foreign Corruption Practices Act of 1977, as amended, (2) the Sarbanes-Oxley Act of 2002, as amended, and
any and all applicable rules and regulations promulgated by the SEC thereunder that are effective and (3) all applicable provisions of the sanction programs administered by the Office of the Foreign Assets Control of the United States Treasury
Department, and (B) obtain, possess and maintain in full force and effect all certificates, consents, rights, authorizations, licenses and permits issued by each Governmental Authority necessary to conduct its business and preserve and maintain
good and valid title to its properties and assets (including, without limitation, land-use rights) free and clear of any Liens, except to the extent any failure to fulfill any of the foregoing matters would not have a material adverse effect on the
Company and its Subsidiaries. 
 (ii) Neither the Company nor any of its Subsidiaries shall take any action or omit to take any action that
would or would reasonably be expected to lead to, or otherwise cause or allow to occur, any event or occurrence that, if such event or occurrence occurred prior to or at the Closing (as defined in the Purchase Agreement), would constitute a breach
of, or require disclosure against, the representations contained in Section 4 of the Purchase Agreement. 
 (iii) The Company shall,
and shall cause each of its Subsidiaries to, maintain its books and records in a manner that, in reasonable detail, accurately and fairly reflects the transactions and disposition of their assets in all material aspects. 

(c) Payment of Taxes. The Company shall, and shall cause each of its Subsidiaries to, pay and discharge, before the same shall become
delinquent, all taxes, assessments and other governmental charges or levies imposed upon them or any of their properties or assets or in respect of their businesses or incomes except for those being contested in good faith by proper proceedings
diligently conducted and against which adequate reserves, in accordance with US GAAP, have been established. 
 (d) Form F-6
Eligibility and “Blue Sky”. The Company covenants that it shall ensure that it maintains the effectiveness of its registration statement on Form F-6 for registration of the issuance of any and all Conversion ADSs upon the deposit of
Conversion Shares with the ADS Depositary in accordance with the Deposit Agreement. All Shares issued upon conversion of the Notes into ADSs shall represent newly issued shares or shares held in treasury by the Company, shall have been duly
authorized and validly issued and shall be fully paid and non-assessable, and shall be free from preemptive rights and free of any Lien or adverse claim. The Company shall make all filings and reports relating to the offer and sale of the Conversion
ADSs by the Company required under applicable foreign or U.S. securities or “blue sky” laws (or to obtain an exemption from such requirements), provided, however, that the Company shall not be required to (i) qualify generally
to do business as a foreign entity in any jurisdiction where it would not otherwise be required to qualify but for this Section 11(d), or (ii) consent to general service of process in any such jurisdiction. 

(e) Pledge of Securities. The Company acknowledges and agrees that the Notes and the Conversion ADSs may be pledged or charged by the
Holder in connection with a bona fide margin agreement or other loan or financing arrangement. The pledge of the Notes and charge of the Conversion ADSs shall not be deemed to be a transfer, sale or assignment of such securities hereunder, and by
effecting such a pledge or charge the Holder shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Note. The Company hereby agrees to execute and deliver such
documentation as a pledgee or chargee may reasonably request in connection with such a pledge or charge by the Holder, provided that no registration under the Securities Act or other U.S. securities regulations may be required in connection with
such pledge or charge. 

  
 13 

 (f) Affiliate Transaction. 

(i) The Company shall not, and shall not permit any Subsidiary to, directly or indirectly, enter into, renew or extend any transaction or
arrangement (including, without limitation, the purchase, sale, lease or exchange of property or assets, or the rendering of any service) with any director or executive officer of the Company or any Affiliate of any such director or executive
officer (each an “Affiliate Transaction”), unless: 
 (A) the Affiliate Transaction is on fair and reasonable terms that
are no less favorable to the Company or the relevant Subsidiary than those that would have been obtained in a comparable transaction by the Company or the relevant Subsidiary with a Person that is not an Affiliate of the Company; and 

(B) the Company delivers to the Holders, with respect to any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of US$200,000 (or the Dollar Equivalent thereof), a Board Resolution set forth in an Officers’ Certificate certifying that such Affiliate Transaction complies with this covenant and such Affiliate Transaction
has been approved by a majority of the disinterested members of the Board. 
 (ii) The limitation set forth in
Section 11(f)(i) above does not limit, and shall not apply to: 
 (A) transactions the Company or any of its Subsidiaries may
enter into with the Holder or any Affiliates of the Holder; 
 (B) the payment of reasonable and customary regular fees to directors of the
Company who are not employees of the Company; 
 (C) transactions between or among the Company and any of its Wholly Owned Subsidiaries or
between or among Wholly Owned Subsidiaries; 
 (D) any sale of Capital Stock (other than Disqualified Stock) of the Company; 

(E) any issuance of securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of,
employment agreements and other compensation arrangements, options to purchase Capital Stock, restricted stock plans, long-term incentive plans, share award schemes, stock appreciation rights plans, participation plans or similar employee plans
and/or indemnity provided on behalf of employees, officers and directors of the Company or any Subsidiary, so long as such plan or scheme is in compliance with the listing rules of the Principal Exchange; and 

(F) any employment, consulting, service or termination agreement, or reasonable and customary indemnification arrangements, entered into by
the Company or any of its Subsidiaries with directors, officers, employees and consultants in the ordinary course of business and the payment of compensation pursuant thereto. 

(g) Asset Sale. 
 (i) The
Company shall not, and shall cause its Subsidiaries not to, consummate any Asset Sale unless: 
 (A) no Event of Default shall have
occurred and be continuing or would occur as a result of such Asset Sale; and 

  
 14 

 (B) the consideration received by the Company or such Subsidiary, as the case may be, is at
least equal to the Fair Market Value of the assets sold or disposed of. 
 (h) Charter Documents. As long as any of the Notes remain
outstanding, the Company shall not, and shall cause its Principal Subsidiaries not to, amend, alter, waive or repeal any provision of its certificate of incorporation, memorandum and articles of association or any other of its organizational or
constitutional documents in a way that will affect the ability of the Company or any of its Subsidiaries to carry out its obligations under this Note without the prior written consent of the Required Holders. 

(i) Scope of Business. As long as any of the Notes remains outstanding, the Company shall not, and shall cause its Principal
Subsidiaries not to, change the scope of the principal business of the Company and its Principal Subsidiaries from that carried on as at the date of this Note; or enter into any business other than such principal business that will affect the
ability of the Company to carry out its obligations under this Note. 
 (j) Information. 

So long as any of the Notes remains outstanding, the Company will provide to the Holders within thirty (30) calendar days after the end
of each fiscal year of the Company, a certificate from an executive officer or director of the Company stating that no Event of Default has occurred or is continuing under this Agreement (or, if an Event of Default shall have occurred, describing
all such Event of Default of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto). 

(k) Restricted Payments. The Company shall not make, and shall not permit any of its Subsidiaries to make, directly or indirectly, any
Restricted Payment. 
 (l) Intellectual Property Protection. The Company shall, and shall cause its Subsidiaries to, take all
commercially reasonable steps in the ordinary course promptly to protect their respective material intellectual property rights. 
 (m)
Transfer Taxes. The Company shall pay any and all material documentary, stamp or similar issue or transfer tax due on (x) the issue of the Notes on the Issuance Date and (y) the issue of ADSs upon conversion of the Notes. However,
in the case of conversion of the Notes, the Company shall not be required to pay any tax or duty that may be payable in respect of any transfer involved in the issue and delivery of Shares in a name other than that of the holder of the Notes to be
converted, and no such issue or delivery shall be made unless and until the Person requesting such issue has paid to the Company the amount of any such tax or duty, or has established to the satisfaction of the Company that such tax or duty has been
paid. 
 (n) Solvency. The Company and each Subsidiary shall remain Solvent after the Issuance Date. As used herein, the term
“Solvent” means, with respect to any Person that (i) the fair market value of the assets of such Person is greater than the total amount of liabilities (including known contingent liabilities) of such Person, (ii) the
present fair salable value of the assets of such Person is greater than the amount that will be required to pay the probable liabilities of such Person on its debts as they become absolute and matured, and (iii) such Person is able to pay its
debts and other liabilities as they become due or mature. 

  
 15 

 12. Amendment and Vote to Change Terms of the Notes. The terms of the Notes may not be
amended, modified, waived or supplemented except by a written instrument executed by the Company and the Required Holders. The affirmative vote at a meeting duly called for such purpose or the written consent without a meeting of the Required
Holders shall be required for any change or amendment to this Note or any other Notes; provided that no reduction to the Principal or Interest or change to the Maturity Date or Interest Payment Date or any conversion or redemption rights set forth
herein may be made without the affirmative vote or written consent of each holder of the Notes affected thereby. 
 13. Transfer. The
Holder understands and agrees any transfer of the Notes requires ten (10) days prior notice and that, except as provided in the Purchase Agreement, neither the Note nor any Conversion ADSs have been or will be registered under the Securities
Act or any state securities laws and, consequently, may not be offered for sale, sold, assigned or transferred except (i) in accordance with Rule 144A under the Securities Act to a person that the transferor reasonably believes is a
“qualified institutional buyer” (as defined in Rule 144A) purchasing for its own account or for the account of a qualified institutional buyer (provided, that the Company makes no representation that the Notes or Conversion ADSs are
eligible for resale pursuant to Rule 144A), (ii) pursuant to an exemption from registration under the Securities Act provided by Rule 144 thereunder (if available), (iii) pursuant to an effective registration statement under the Securities
Act or (iv) pursuant to another available exemption under the Securities Act, provided that the Company may request the Holder (or any subsequent Holder) to deliver a legal opinion from a law firm reasonably acceptable to the Company confirming
the availability of the exemption from registration on which the Holder intends to rely to complete the proposed transfer prior to recording the transfer on the Register (as defined in Section 14(b)) and issuing a new Note to a transferee. In
accordance with Section 175 of the Companies Law (2011 Revision) of the Cayman Islands, the Holder understands and agrees that in no event shall the Note or any Conversion ADSs be offered to the public or any member of the public in the Cayman
Islands. 
 14. Reissuance of this Note. 

(a) Transfer. If this Note is to be transferred, the transferring Holder and the transferee shall execute a Note Assignment and
Assumption Agreement, substantially in the form attached hereto as Exhibit III or such other substantially similar form agreed between the Holder and the transferee. Thereafter, the transferring Holder shall (i) notify the Company of
such proposed transfer, (ii) deliver to the Company the Note Assignment and Assumption Agreement or substantially similar agreement executed by the Holder and the transferee and (iii) surrender this Note to the Company, whereupon the
Company shall forthwith promptly (subject to compliance with Section 13 hereof) (x) execute and deliver to the Holder the acknowledgement on the signature page to the Note Assignment and Assumption Agreement solely for the purpose of
effecting the registration of such transfer under Section 14(b) hereof and (y) issue and deliver upon the order of the Holder a new Note in accordance with Section 14(e) (and subject to compliance with Section 13 hereof),
registered as the Holder may request, representing the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being transferred, a new Note (in accordance with Section 14(e)) to the Holder
representing the outstanding Principal not being transferred. For the avoidance of doubt, whether the Company executes or delivers to the Holder the acknowledgement on the signature page to the Note Assignment and Assumption Agreement or not shall
not affect the effectiveness of the transfer of the Notes. In the event of any such transfer of a portion of the Note, the term “Note” as used within this Note shall also mean “Notes,” and, to the extent the context of a
particular sentence dictates, this Note shall be automatically modified such that sentences containing the singular word “Note” will be revised to mean the plural word “Notes”. Any use of the word “Notes” shall have the
same meaning as the defined term “Note” with appropriate provision made for the plural form of the word. 

  
 16 

 (b) Transfer Register. In the event of a transfer, the Company shall maintain a
register (the “Register”) for the registration or transfer of this Note, and shall enter the names and addresses of the registered Holders, the transfers of this Note and the names and addresses of the transferees of this Note. The
Company shall treat any registered holder as the absolute owner of this Note held by such holder, as indicated in the Register, for the purpose of receiving payment of all amounts payable with respect to this Note and for all other purposes. Solely
for purposes of this Section 14(b) and for tax purposes only, the keeper of the Register, if it is not the Company, shall be the Company’s agent for purposes of maintaining the Register. 

(c) Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder
to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note (in accordance with Section 14(e)) representing the
outstanding Principal. 
 (d) Note Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by
the Holder at the principal office of the Company, for a new Note or Notes (in accordance with Section 14(e) and in Principal amounts of at least US$50,000 (or a lesser amount if the Principal outstanding under the Note is less than US$50,000))
representing in the aggregate the outstanding Principal amount of this Note, and each such new Note shall represent such portion of such outstanding Principal amount as is designated by the Holder at the time of such surrender. 

(e) Issuance of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note
(i) shall be of same tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal amount remaining outstanding (or in the case of a new Note being issued pursuant to Section 14(a) or
Section 14(d) the Principal amount designated by the Holder which, when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal amount remaining outstanding under this
Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, and (iv) shall be in the same form and have the same
rights and conditions as this Note. 
 (f) Administrative Agent. In the event that there are two or more Holders who are not
Affiliates with each other or there are more than five Holders who are Affiliates with each other, at the Company’s request, the Holders agree to appoint an administrative agent approved by the Required Holders in consultation with the Company
to whom the Company can make payments on behalf of the Holders and send any notices or certificates required under the Notes to be delivered to Holders. The Company and the Holders shall appoint the Administrative Agent pursuant to an agreement
that will set forth the Administrative Agent’s duties and contain customary provisions limiting the Administrative Agent’s liability and customary indemnification provisions. For the avoidance of doubt, any failure to appoint an
Administrative Agent will not restrict the transferability of the Notes. All of the expenses and costs to be incurred by the Administrative Agent shall be borne by the Company. 

  
 17 

 15. Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The
remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the
Holder’s right to pursue actual damages for any failure by the Company to comply with the terms of this Note. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the
amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder shall
cause irreparable harm to the Holder and that the remedy at law for any such breach shall be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other
available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. 

16. Payment of Collection, Enforcement and Other Costs. If (i) this Note is placed in the hands of an attorney for collection or
enforcement or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce the provisions of this Note or (ii) there occurs any bankruptcy, reorganization,
receivership of the Company or other proceedings affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay the reasonable costs incurred by the Holder for such collection, enforcement or action or in
connection with such bankruptcy, reorganization, receivership or other proceeding, including, but not limited to, reasonable and documented attorneys’ fees and disbursements. 

17. Construction; Headings. This Note shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed
against any person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect the interpretation of, this Note. References to an action being “directly or indirectly” prohibited
or restricted hereunder shall include any amendment of the Company’s Charter Documents, any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary
action that would result in the prohibited or restricted action. 
 18. Failure or Indulgence Not Waiver. No failure or delay
on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of
any other right, power or privilege. 
 19. Severability. Any term of this Note that is prohibited or unenforceable in a
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. 
 20. Notices; Payments. 

(a) Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in
accordance with the notice provisions in the Purchase Agreement or the Register. 
 (b) Payments. Whenever any payment of cash is to
be made by the Company to any Person pursuant to this Note, such payment shall be made in lawful money of the United States of America by a check drawn on the account of the Company and sent via overnight courier service to such Person at such
address as previously provided to the Company in writing; provided that the Holder may elect to receive a payment of cash via wire transfer of immediately available funds by providing the Company with prior written notice setting out such request
and the Holder’s wire transfer instructions. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day and,
in the case of any Interest Payment Date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of Interest due on such date. 

  
 18 

 (c) Taxes. Any and all payments by the Company to or for the account of the Holder under
this Note shall be made free and clear of and without deduction for any taxes, except as required by applicable law. If the Company shall be required by any applicable law to deduct any taxes from or in respect of any sum payable under this Note to
the Holder, (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 21), the Holder receives an amount equal to the sum
it would have received had no such deductions been made, (ii) the Company shall make such deductions, (iii) the Company shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable
law, and (iv) as promptly as practicable after the date of such payment, the Company shall deliver to the Holder the original or a certified copy of a receipt or other appropriate documentation evidencing payment thereof. Upon request by the
Company, the Holder shall use its commercially reasonable efforts to provide the Company with any forms or other documentation as may be reasonably necessary in order to claim an applicable exemption from or reduction of any such taxes. 

21. Cancellation. After all Principal, accrued Interest and other amounts due at any time owed on this Note have been paid in full,
this Note shall automatically be deemed canceled regardless whether the Note is surrendered to the Company, and this Note shall be surrendered to the Company for cancellation and shall not be reissued. 

22. Governing Law and Dispute Resolution. 

(a) This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and
performance of this Note shall be governed by, the internal laws of the State of New York without regard to any choice of Laws or conflict of Laws provisions that would require the application of the Laws of any other jurisdiction. 

(b) Any dispute, controversy, difference, proceedings or claim arising out of or relating to this Agreement, including the existence,
validity, interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally resolved by arbitration administered by the Hong Kong
International Arbitration Centre (“HKIAC”) under the Hong Kong International Arbitration Centre Administered Arbitration rules in force when the notice of arbitration is submitted. 

(c) The seat of arbitration shall be Hong Kong. The number of arbitrators shall be three. The arbitration proceedings shall be conducted in
English. 
 (d) The arbitrators shall decide any dispute submitted by the parties to the arbitration strictly in accordance with the
substantive Law of New York and shall not apply any other substantive Law. 
 (e) Each of the Parties shall cooperate with any party to the
dispute in making full disclosure of and providing complete access to all information and documents requested by such party in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on the party
receiving the request. 

  
 19 

 (f) The award of the arbitration tribunal shall be final and binding upon the disputing parties,
and any party to the dispute may apply to a court of competent jurisdiction for enforcement of such award. 
 23. Certain
Definitions. For purposes of the Notes, the following terms shall have the following meanings: 
 “ADS” means an
American Depositary Share, issued pursuant to the Deposit Agreement or any applicable restricted American Depositary Share letter agreement, representing one (1) Share as of the date of this Note, and deposited with the ADS Depositary or its
designee, including an American Depositary Share that is so issued with restrictive legends. 
 “ADS Delivery Date” shall
have the meaning set forth in Section 4(c)(ii). 
 “ADS Depositary” means The Bank of New York Mellon. 

“Affiliate” means, with respect to any Person, any other Person (1) directly or indirectly controlling, controlled by,
or under direct or indirect common control with, such Person; (2) who is a director or officer of such Person or any Subsidiary of such Person or of any Person referred to in clause (1) of this definition; or (3) who is a spouse or
any person cohabiting as a spouse, child or step-child, parent or step-parent, brother, sister, step-brother or step-sister, parent-in-law, grandchild, grandparent, uncle, aunt, nephew and niece of a Person described in clause (1) or (2). For
purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 

“Affiliate Transaction” shall have the meaning set forth in Section 11(f). 

“Asset Acquisition” means (1) an investment by the Company of a Subsidiary in any other Person pursuant to which such
Person shall become a Subsidiary or shall be merged into or consolidated with the Company or any Subsidiary; or (2) an acquisition by the Company or any Subsidiary of the property and assets of any Person other than the Company or any
Subsidiary that constitute substantially all of a division or line of business of such Person. 
 “Asset Sale” means any
sale, transfer or other disposition (including by way of merger or consolidation) of any of its property or assets (including any sale of Capital Stock of a Subsidiary) in one transaction or a series of related transactions by the Company or any
Subsidiary to any Person; provided that “Asset Sale” shall not include: 
 (i) sales or other dispositions of inventory,
receivables and other current assets (including properties under development for sale and completed properties for sale) in the ordinary course of business; 

(ii) sales, transfers or other dispositions of assets constituting a Permitted Investment; 

(iii) sales, transfers or other dispositions of assets with a Fair Market Value not in excess of US$500,000 (or the Dollar Equivalent thereof)
in any transaction or series of related transactions; 

  
 20 

 (iv) any sale, transfer, assignment or other disposition of any property, or equipment that has
become damaged, worn out, obsolete or otherwise unsuitable for use in connection with the business of the Company or its Subsidiaries; and 

(v) any sale, transfer or other disposition by the Company or any Subsidiary, including the sale or issuance by the Company or any Subsidiary
of any Capital Stock of any Subsidiary, to the Company or any Subsidiary. 
 “Authorized Share Allocation” shall have the
meaning set forth in Section 10(a). 
 “Authorized Share Failure” shall have the meaning set forth in
Section 5(a)(xi). 
 “Bloomberg” means Bloomberg L.P. (or any successor thereto). 

“Board” means the board of directors of the Company. 

“Board Resolution” means resolutions duly adopted by the Board. 

“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York, the
PRC or Hong Kong are authorized or required by law to remain closed. 
 “Capital Stock” means, with respect to any Person,
any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) in equity of such Person, whether outstanding on the Issuance Date or issued thereafter, including, without limitation, all common
stock and Preferred Stock, but excluding debt securities convertible into such equity. 
 “Change of Control” means the
occurrence of one or more of the following events: 
 (i) the Company’s consolidation with, or merger with or into, any Person, or any
Person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the outstanding voting stock of the Company or such other Person is converted into or exchanged for cash, securities or other
property, other than any such transaction where the voting stock of the Company outstanding immediately prior to such transaction is converted into or exchanged for (or continues as) voting stock of the surviving or transferee Person constituting a
majority of the outstanding shares of voting stock of such surviving or transferee Person (immediately after giving effect to such issuance) and in substantially the same proportion as before the transaction; 

(ii) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the properties or assets of the Company and its Subsidiaries, taken as a whole, to any “person” (within the meaning of Section 13(d) of the Exchange Act); 

(iii) the adoption of a plan relating to the liquidation or dissolution of the Company; or 

(iv) Mr. Jun Zhu ceases to directly or indirectly own 20% or more of the total outstanding and issued Shares of the Company on a
fully-diluted and as-converted basis. 
 “Change of Control Redemption Date” shall have the meaning set forth in
Section 8(a). 

  
 21 

 “Charter Documents” means the memorandum and articles of association or other
constitutional documents of the Company, each as amended from time to time. 
 “China” or the “PRC” means
the People’s Republic of China and for the purpose of this Note shall exclude Hong Kong, Taiwan and the Special Administrative Region of Macau. 

“Closing Sale Price” means, for any security as of any date, (i) the last closing trade price for such security on the
Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price of such security prior to 4:00:00 p.m., The City of New
York time, as reported by Bloomberg, or (ii) if the Principal Market is not the principal securities exchange or trading market for such security, the last trade price of such security on the principal securities exchange or trading market
where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or
(iii) if no last trade price is reported for such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the “OTCPink” marketplace by OTC Markets Group Inc. (formerly Pink Sheets
LLC), or (iv) if the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined in good
faith by the Board and the Holder. If the Board and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 23. All such determinations to be appropriately adjusted for
any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period. For the avoidance of doubt, the “Closing Share Price” for Shares shall be the same “Closing Share Price”
calculated for ADS as adjusted for the ADS-to-Share ratio if it can be calculated pursuant to clause (i) through (iii) of this definition. 

“Company” shall have the meaning set forth in the preamble hereto. 

“Conversion ADSs” means ADSs issuable upon conversion of this Note. 

“Conversion Date” shall have the meaning set forth in Section 4(c)(i). 

“Conversion Failure” shall have the meaning set forth in Section 4(c)(iv)(A). 

“Conversion Notice” shall have the meaning set forth in Section 4(c)(i). 

“Conversion Price” shall have the meaning set forth in Section 4(b)(ii). 

“Conversion Shares” means Shares underlying ADSs issuable upon conversion of this Note. 

“Converted Certificates” shall have the meaning set forth in Section 4(c)(i). 

“Convertible Securities” shall have the meaning set forth in Section 7(c)(i). 

“Corporate Event” shall have the meaning set forth in Section 6(b). 

“Default Notice” shall have the meaning set forth in Section 5(b) 

“Deposit Agreement” means the deposit agreement dated as of December 20, 2004, by and among the Company and the ADS
Depositary and holders of ADSs issued thereunder or, if amended or supplemented as provided therein, as so amended or supplemented. 

  
 22 

 “Disqualified Stock” means any class or series of Capital Stock of any Person
that by its terms or otherwise is (1) required to be redeemed prior to the date that is 183 days after the Stated Maturity of the Notes, (2) redeemable at the option of the holder of such class or series of Capital Stock at any time prior
to the date that is 183 days after the Stated Maturity of the Notes or (3) convertible into or exchangeable for Capital Stock referred to in clause (1) or (2) above or Indebtedness having a scheduled maturity prior to the Stated
Maturity of the Notes; provided that any Capital Stock that would not constitute Disqualified Stock but for provisions thereof giving holders thereof the right to require such Person to repurchase or redeem such Capital Stock upon the
occurrence of an “asset sale” or “change of control” occurring prior to the Stated Maturity of the Notes. 

“Dollar Equivalent” means with respect to any monetary amount in a currency other than U.S. Dollars, at any time for
determination thereof, the amount of U.S. Dollars obtained by converting such foreign currency involved in such computation into U.S. Dollars at the spot rate for the purchase of U.S. Dollars with the applicable foreign currency as published in The
Wall Street Journal in the “Exchange Rates” column under the heading “Currency Trading” on the date two Business Days prior to such determination. 

“Employee Incentive Plan” means the Company’s incentive plan or plans adopted for its directors, officers, employees and
consultants and approved by the board of the Company. 
 “Equity Securities” means with respect to any entity, capital
stock, membership interests, partnership interests, registered capital, joint venture or other ownership interests or any options, warrants or other securities that are directly or indirectly convertible into, or exercisable or exchangeable for,
such capital stock, membership interests, partnership interests, registered capital or joint venture or other ownership interests (whether or not such derivative securities are issued by such person). Unless the context otherwise requires, any
reference to “Equity Securities” refers to the Equity Securities of the Company. 
 “Event of Default” shall have
the meaning set forth in Section 5(a). 
 “Event of Default Redemption Notice” shall have the meaning set forth in
Section 5(c). 
 “Event of Default Redemption Price” shall have the meaning set forth in Section 5(c). 

“Excess Dividend Amount” shall have the meaning set forth in Section 6(a)(iv). 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Extended Maturity Date” shall have the meaning set forth in Section 2(c). 

“Extension Period” shall have the meaning set forth in Section 3(c). 

“Extended Principal” shall have the meaning set forth in Section 3(c). 

“Extraordinary Cash Dividend” shall have the meaning set forth in Section 6(a)(ii). 

“Fair Market Value” means the price that would be paid in an arm’s length transaction between an informed and willing
seller under no compulsion to sell and an informed and willing buyer under no compulsion to buy, as determined either (i) in good faith by the Board, whose determination shall be conclusive if evidenced by a Board Resolution, or (ii) by an
accounting, appraisal or investment banking firm of recognized international standing appointed by the Company. 

  
 23 

 “Fundamental Transaction” means any transaction or series of transactions
pursuant to which the Company shall, directly or indirectly, (i) consolidate or merge into any other Person (other than any of its Affiliates), (ii) sell, lease, license, assign, transfer, convey or otherwise dispose of all or more than
50% of the properties or assets of the Company to another Person (other than any of its Affiliates), (iii) consummate a stock purchase, tender offer, exchange offer or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of Voting Stock (not including any shares of Voting Stock held by the other Person (other than a
Subsidiary) or other Persons (other than any of its Affiliates) making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase or other business combination) or (iv) reorganize, recapitalize or
reclassify its Shares. 
 “Governmental Authority” shall mean any government, or political subdivision thereof; any
department, agency or instrumentality of any government or political subdivision thereof; any court or arbitral tribunal; and the governing body of any securities exchange, whether domestic or foreign, in each case having competent jurisdiction.

 “Hedging Obligation” of any Person means the obligations of such Person pursuant to any agreement or arrangement
designed to protect against fluctuations in interest rates, commodity prices or foreign exchange rates. 
 “HKIAC” shall
have the meaning set forth in Section 22(b). 
 “Holder” shall have the meaning set forth in the preamble hereto. 

“Holders” shall have the meaning set forth in the preamble hereto. 

“Hong Kong” means the Hong Kong Special Administrative Region of the PRC. 

“Incur” means, with respect to any Indebtedness to incur, create, issue, assume, guarantee or otherwise become liable for or
with respect to, or become responsible for, the payment of, contingently or otherwise, such Indebtedness; provided that (i) any Indebtedness of a person existing at the time such person becomes a Subsidiary will be deemed to be Incurred
by such Subsidiary at the time it becomes a Subsidiary and (ii) the accretion of original issue discount shall not be considered an Incurrence of Indebtedness. The terms “Incurrence,” “Incurred” and
“Incurring” have meanings correlative with the foregoing. 
 “Indebtedness” of any Person means, without
duplication (i) all indebtedness for borrowed money, (ii) all obligations issued, undertaken or assumed as the deferred purchase price of property or services, including (without limitation) “capital leases” in accordance with
US GAAP (other than trade payables entered into in the ordinary course of business), (iii) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (iv) all obligations
evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (v) all indebtedness created or arising under any conditional sale
or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in
the event of default are limited to repossession or sale of such property), (vi) all monetary obligations under any leasing or similar arrangement, whether or not classified as a capital lease in accordance with generally accepted accounting
principles, (vii) all indebtedness referred to in clauses (i) through (vi) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any encumbrance upon or in any
property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (viii) all contingent
obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (i) through (vii) above. 

  
 24 

 “Interest” shall have the meaning set forth in the Section 3(a). 

“Interest Payment Date” shall have the meaning set forth in Section 3(b). 

“Interest Rate” shall have the meaning set forth in the Section 3(a). 

“Investment” means, with respect to any Person: 

(i) any direct or indirect advance, loan or other extension of credit by such Person to another Person; 

(ii) any capital contribution by such Person to another Person (by means of any transfer of cash or other property to
others or any payment for property or services for the account or use of others); 
 (iii) any purchase or acquisition
of capital stock, Indebtedness, bonds, notes, debentures or other similar instruments or securities by such Person issued by another Person; or 

(iv) any guarantee of any obligation by such Person of another Person to the extent such obligation is outstanding and to
the extent guaranteed by such Person. 
 “Issuance Date” shall have the meaning set forth in the preamble hereto. 

“Lien” means any mortgage, deed of trust, pledge, charge, encumbrance, security interest, collateral assignment or other lien
or restriction of any kind, whether based on common law, constitutional provision, statute or contract, and shall include reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, leases and other title
exceptions. 
 “Maturity Date” shall have the meaning set forth in Section 2(a). 

“New Securities” shall have the meaning set forth in Section 7(c)(i). 

“Note” or “Notes” shall have the meaning set forth in the preamble hereto.

“Officers’ Certificate” means a certificate signed by (i) the Company’s Chief Executive Officer or President,
and (ii) the Company’s Chief Financial Officer, Treasurer or Secretary. 
 “Options” shall mean rights, options
or warrants to subscribe for, purchase or otherwise acquire Shares or Convertible Securities. 

  
 25 

 “Per Share Interest Amount” shall have the meaning set forth in
Section 6(a)(iii). 
 “Permitted Investment” means: 

(i) Temporary Cash Investments; 

(ii) payroll, travel and similar advances to cover matters that are expected at the time of such advances ultimately to be treated as
expenses in accordance with US GAAP; 
 (iii) stock, obligations or securities received in satisfaction of judgments; 

(iv) any Investment pursuant to a Hedging Obligation designed solely to protect the Company or any Subsidiary against fluctuations in
commodity prices, interest rates or foreign currency exchange rates and not for speculation; 
 (v) receivables owing to the Company or any
Subsidiary, if created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms; 

(vi) Investments made by the Company or any Subsidiary consisting of consideration received in connection with an Asset Sale made in
compliance with Section 11(g); 
 (vii) pledges or deposits (i) with respect to leases or utilities provided to third parties in
the ordinary course of business; 
 (viii) Investments in securities of trade creditors, trade debtors or customers received pursuant to
any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of such trade creditor, trade debtor or customer; 

(ix) advances to contractors and suppliers for the acquisition of assets or consumables or services in the ordinary course of business that
are recorded as deposits or prepaid expenses on the Company’s consolidated balance sheet; 
 (x) deposits of pre-sale proceeds made in
order to secure the completion and delivery of pre-sold properties and issuance of the related land use title in the ordinary course of business; 

(xi) deposits made in order to comply with statutory or regulatory obligations to maintain deposits for workers compensation claims and other
purposes specified by statute or regulation from time to time in the ordinary course of business; 
 (xii) advances in the ordinary course
of business to government authorities or government-affiliated entities in the PRC for the purpose of the development and preparation by such government authority or government affiliated entity of primary land for auction purposes which advances
are recorded as deposits or prepaid expenses on the Company’s consolidated balance sheet to the extent each such advance is on normal commercial terms including being subject to repayment from the relevant government authority; 

(xiii) an acquisition of assets, Capital Stock or other securities by the Company or a Subsidiary for consideration to the extent such
consideration consists solely of Common Stock of the Company; and 

  
 26 

 (xiv) repurchases of the Notes. 

“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization, any other entity or any government or any department or agency thereof. 
 “Preferred Stock”
as applied to the Capital Stock of any Person means Capital Stock of any class or classes that by its terms is preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution
of such Person, over shares of Capital Stock of any other class of such Person. 
 “Principal” shall have the meaning set
forth in the preamble hereto. 
 “Principal Subsidiaries” means (i) Gamenow.Net (Hong Kong) Limited, (ii) China
The9 Interactive Limited, (iii) China The9 Interactive (Shanghai) Limited, (iv) The9 Computer Technology Consulting (Shanghai) Co., Ltd. and (xii) any other Subsidiary which at any time on or after the date of this Note would be
deemed a “significant subsidiary” (as such term is defined in Rule 1-02(w) of Regulation S-X under the Securities Act) of the Company. 

“Principal Market” means, with respect to the Company, The NASDAQ Global Market. 

“Purchase Agreement” shall have the meaning set forth in the preamble hereto. 

“Register” shall have the meaning set forth in Section 14(b). 

“Required Holders” means, at any given time, the Holders representing more than 60%of the aggregate principal amount of the
Notes then outstanding.
 “Required Reserve Amount” shall have the meaning set forth in Section 10(a). 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to
the Company’s or any Subsidiary’s Equity Securities, or any payment or other distribution by the Company or any Subsidiary (whether in cash, securities or other property), which, in each case and at the time of, and after giving effect to,
the Restricted Payment, would result in or continue an Event of Default. 
 “Rule 144” shall have the meaning assigned to
such term in the Purchase Agreement. 
 “SEC” means the Securities and Exchange Commission. 

“Securities Act” shall have the meaning set forth in the preamble hereto. 

“Security Documents” shall have the meaning set forth in the Purchase Agreement. 

“Security Provider” shall have the meaning set forth in the Purchase Agreement. 

“Shares” means ordinary shares, par value US$0.01 per share of the Company. 

“Solvent” shall have the meaning set forth in Section 11(n). 

  
 27 

 “Stated Maturity” means, (1) with respect to any Indebtedness, the date
specified in such debt security as the fixed date on which the final installment of principal of such Indebtedness is due and payable as set forth in the documentation governing such Indebtedness and (2) with respect to any scheduled
installment of principal of or interest on any Indebtedness, the date specified as the fixed date on which such installment is due and payable as set forth in the documentation governing such Indebtedness. 

“Subsidiary” of any Person shall mean any corporation, partnership, joint venture, limited liability company, trust or other
form of legal entity of which (or in which) (a) more than 50% of (i) the issued and outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether at the
time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency), (ii) the interest in the capital or profits of such partnership, joint venture or limited liability
company or (iii) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries, or (b) such Person has the power to direct the management or policies, whether through ownership or voting proxy of the voting power of such legal entity, through the power to appoint a majority of the members of the board of
directors or similar governing body of such legal entity, through contractual arrangements or otherwise. 
 “Temporary Cash
Investment” means any of the following: 
 (i) direct obligations of the United States of America, any state of the European
Economic Area, the People’s Republic of China and Hong Kong or any agency of any of the foregoing or obligations fully and unconditionally Guaranteed by the United States of America, any state of the European Economic Area, the People’s
Republic of China, Hong Kong or any agency of any of the foregoing, in each case maturing within one year, which in the case of obligations of, or obligations Guaranteed by, any state of the European Economic Area, shall be rated at least
“A” by S&P or Moody’s; 
 (ii) demand or time deposit accounts, certificates of deposit and money market deposits
maturing within 90 days of the date of acquisition thereof issued by a bank or trust company which is organized under the laws of the United States of America, any state thereof, any state of the European Economic Area or Hong Kong, and which bank
or trust company has capital, surplus and undivided profits aggregating in excess of US$100.0 million (or the Dollar Equivalent thereof) and has outstanding debt which is rated “A” (or such similar equivalent rating) or higher by at least
one nationally recognized statistical rating organization (as defined in Section 3(a)(62) of the Exchange Act) or any money market fund sponsored by a registered broker dealer or mutual fund distributor; 

(iii) repurchase obligations with a term of not more than 30 days for underlying securities of the types described in clause (1) above
entered into with a bank or trust company meeting the qualifications described in clause (2) above; 
 (iv) commercial paper, maturing
not more than 90 days after the date of acquisition thereof, issued by a corporation (other than an Affiliate of the Company) organized and in existence under the laws of the United States of America, any state thereof or any foreign country
recognized by the United States of America with a rating at the time as of which any investment therein is made of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according to S&P; 

(v) securities, maturing within 180 days of the date of acquisition thereof, issued or fully and unconditionally guaranteed by any state,
commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least “A” by S&P or Moody’s; 

  
 28 

 (vi) any money market fund that has at least 95% of its assets continuously invested in
investments of the types described in clauses (1) through (5) above; and 
 (vii) demand or time deposit accounts, certificates
of deposit, overnight or call deposits and money market deposits with (a) Industrial and Commercial Bank of China, Agricultural Bank of China, Pudong Development Bank and Guangdong Development Bank, (b) any other bank, trust company or
other financial institution organized under the laws of the PRC or Hong Kong whose long-term debt is rated as high or higher than any of those banks listed in clause (a) of this paragraph or (c) any other bank, trust company or other
financial institution organized under the laws of the PRC or Hong Kong; provided that, in the case of clause (iii), such deposits do not exceed US$10.0 million (or the Dollar Equivalent thereof) with any single bank, trust company or other financial
institution or US$30.0 million (or the Dollar Equivalent thereof) in the aggregate, at any date of determination thereafter. 

“Trading Day” means any day on which the ADSs are traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the ADSs, then on the principal securities exchange or securities market on which the ADSs are then traded; provided that “Trading Day” shall not include any day on which the ADSs are scheduled to trade
on such exchange or market for less than four hours or any day that the ADSs are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of
trading on such exchange or market, then during the hour ending at 4:00:00 p.m., The City of New York time, or such other time as such exchange or market publicly announces shall be the closing time of trading). 

“Transaction Documents” shall have the meaning assigned to such term in the Purchase Agreement. 

“US GAAP” means generally accepted accounting principles as applied in the United States. 

“US$” means United States dollars, the lawful currency of the United States of America. 

“Voting Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof
have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall
have or might have voting power by reason of the happening of any contingency). 
 “Wholly Owned Subsidiary” means, at any
time, a Subsidiary all the Voting Stock of which (except directors’ qualifying shares) is at such time owned, directly or indirectly, by the Company and its other Wholly Owned Subsidiaries. 

[Signature Page Follows] 

  
 29 

 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the Issuance Date
set forth above. 
  

			
	THE9 LIMITED
		
	By:	 	  

	Name:	 	
	Title:	 	

 Dated:
                     

  
 30 

 EXHIBIT I 

THE9 LIMITED 

CONVERSION NOTICE 
 Reference is made to
the 12.00% Senior Convertible Note (the “Note”) issued to the undersigned by The9 Limited (the “Company”). In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Principal amount
of the Note indicated below into Shares, par value US$0.01 per share, as of the date specified below. 
  

			
	Date of Conversion:
                                         
                                         
                  	 	
		
	Aggregate Principal amount to be converted:
                                         
                                       	 	
		
	Name and address of Holder:
                                         
                                         
                  	 	
	
                            
                                         
                               
	 	
		
	 If applicable, name and address of Holder’s designee

on whose account the Shares will be registered:
                                         
                                         
                  
	 	
	
                            
                                         
                                         
  

		
	Please confirm the following information:	 	
		
	Conversion Price:
                                         
                                       	 	
		
	Number of Shares to be issued:
                                         
                                         
                                      	 	

 Authorization 
  

							
	Authorization:	 	  
	 		 	

							
				
	By: 	 	  
	 		 	
				
	Title: 	 	  
	 		 	
				
	Dated:	 	  
	 		 	
				
		 		 		 	  

		 		 		 	Signature(s)

  
 I-1 

 EXHIBIT II 

ACKNOWLEDGMENT 
 The
Company hereby acknowledges this Conversion Notice and shall issue the above indicated number of Shares as set forth in the Conversion Notice. 
  

			
	THE9 LIMITED
		
	By:	 	  

	Name:	 	
	Title:	 	

 Dated:
                     

  
 II-1 

 EXHIBIT III 

FORM OF 
 NOTE ASSIGNMENT
AND ASSUMPTION AGREEMENT 
 [See attached.] 

 FORM OF 

NOTE ASSIGNMENT AND ASSUMPTION AGREEMENT 

This NOTE ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”), dated as of
                     is by and between
                     (the “Assignor”) and
                     (the “Assignee”). 

RECITALS 
 WHEREAS, the
Assignor is a Holder, under and as such term is defined in each of (i) the 12.00% Senior Convertible Note (the “Note”) of The9 Limited, an exempted company organized under the laws of the Cayman Islands (the
“Company”), dated [●] (the “Effective Date”), originally in favor of Splendid Days Limited, a company formed under the laws of the British Virgin Islands (the “Investor”). 

WHEREAS, Assignor desires to assign certain of its interests under the Note to Assignee in accordance with Section [●]
thereof; 
 WHEREAS, Assignor proposes to sell, assign and transfer to the Assignee, and the Assignee proposes to accept and assume from the
Assignor, [a portion of] the Note held by the Assignor in the principal amount of US$ [●] and the Assignor’s interests, to the extent of such portion of the Note so assigned, in all of the rights and obligations of the
Assignor solely as a Holder, all on the terms and subject to the conditions of this Agreement (such interest in such rights and obligations being hereinafter referred to as the “Assigned Interest”); and 

WHEREAS, after giving effect to the assignment and assumption under this Agreement, the respective outstanding principal amounts of the Note
held by Assignor and Assignee shall be in the amounts set forth on Annex 1 hereto. 
 NOW, THEREFORE, in consideration of the
foregoing and the mutual agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

Section 1. Definitions. All capitalized terms not otherwise defined herein shall have the respective meanings set forth in the Note. 

Section 2. Assignment. As of the Effective Date, subject to and in accordance with the Note, the Assignor irrevocably sells, transfers, conveys
and assigns, without recourse, representation or warranty (except as expressly set forth herein), to Assignee, and the Assignee irrevocably purchases from the Assignor, the Assigned Interest, which shall include all of Assignor’s rights and
obligations solely in its capacity as a Holder with respect to the Assigned Interest under the Note and any other documents or instruments delivered pursuant thereto or in connection therewith to the extent related to the Assigned Interest. 

Section 3. Effectiveness. 

(a) The effectiveness of the sale, assignment and transfer hereunder is subject to the due execution and delivery of this Agreement by the
Assignor and the Assignee.The Company shall not be required to counter-sign this Agreement. 
 (b) Simultaneously with the execution
and delivery by the Assignor and Assignee hereto of this Agreement to the Company for its recording in the Register, the Assignor may deliver its Note (if any) to the Company and may request that new Notes be executed and delivered to the Assignor
and Assignee reflecting the respective assigned and assumed outstanding principal set forth on Annex 1 hereto. The Assignor’s legal address for all notices and bank account information for all payments required under the Note is set
forth on Annex 1. 

 (c) Except as otherwise provided in the Note, effective as of the Effective Date, the
Assignee shall be deemed automatically to have become a party to, and the Assignee agrees that it will be bound by the terms and conditions set forth in the Note, and shall have all the rights and obligations of a “Holder” under the Note
as if it were an original signatory thereto or an original Holder thereunder with respect to the Assigned Interest and the Assigned Rights. 

Section 4. Transfer Exempt from Registration. The Assignor and Assignee confirm and represent to the Company that the assignment and transfer of
the Assigned Interest made hereunder is and will be exempt from registration under the Securities Act. The Assignor and Assignee acknowledge that, pursuant to the Note, the Company may request Assignor or Assignee to furnish a legal opinion from a
law firm reasonably acceptable to the Company confirming the availability of the exemption upon which the Assignor and Assignee are relying prior to recording the transfer of the Note in the Register. 

Section 5. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND ALL QUESTIONS CONCERNING THE CONSTRUCTION,
VALIDITY, INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CHOICE OF LAWS OR CONFLICT OF LAWS PROVISIONS THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANY
OTHER JURISDICTION. 
 Section 6. Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by telecopy or
portable document format (“pdf”) shall be effective as delivery of a manually executed counterpart of this Agreement. 
 Section 8.
Further Assurances. The Assignor and the Assignee hereby agree to execute and deliver such other instruments, and take such other action, as either party or the Company may reasonably request in connection with the transactions contemplated
by this Agreement including, without limitation, any disclosure of this Agreement required under the Securities Act or delivery of any notices to the Subsidiaries of the Company that may be required in connection with the assignment contemplated
hereby. 
 Section 9. Binding Effect; Amendment. This Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors and assigns, subject, however, in all respects to the provisions of the Note. No provision of this Agreement may be amended, waived or otherwise modified except by an instrument in writing signed by each party hereto and by the
Company. 
 [The remainder of this page is intentionally blank. The next page is the signature page.] 

 IN WITNESS WHEREOF, the Assignor and the Assignee have caused this Note Assignment and Assumption
Agreement to be executed by their duly authorized officers. 
  

			
	                                , as Assignor
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	                                , as Assignee
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Acknowledged on                     
                    
	
	The9 Limited
		
	By:	 	  

	Name:	 	
	Title:	 	

 Annex 1 
  

									
	 	 	 Assignor’s Outstanding

Principal Amount assigned by it

hereunder
	 	 	 Assignee’s Outstanding

Principal Amount assigned to it

hereunder
	 
	 Principal Amount of Note:
	 	US$	[            	] 	 	US$	[            	] 

  

			
	All notices and correspondence to Assignee as a Holder should be sent to:	  	
		
	                                      
                                         
                                         
	  	
		
	All payments required to be made to Assignee as a Holder should be paid to:	  	
		
	                                      
                                         
                                         
        	  	

 Exhibit B 

Form of Tranche I Warrants 

 Exhibit B – Form of Tranche I Warrants 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR IN A TRANSACTION NOT SUBJECT TO THE REGISTRATION REQUIREMENTS OF THAT ACT, OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL
APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION
DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS. 
 THE9 LIMITED 

WARRANT TO PURCHASE AMERICAN DEPOSITARY SHARES

 Warrant No.: [●] 
 Outstanding Principal Amount:
[●] 
 Date of Issuance: [●] (“Issuance Date”) 

The9 Limited, an exempted company incorporated with limited liability and existing under the laws of the Cayman Islands (the
“Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Splendid Days Limited, the registered holder hereof or its permitted assigns (the
“Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, pursuant to this warrant (including any warrants issued in exchange, transfer or replacement hereof, this “Warrant”) to
purchase ADSs (as defined under the Section headed “Certain Definitions” hereof, and such ADSs the “Warrant ADSs”), at any time or times on or after the Issuance Date, but not after 11:59 p.m., New York time, on the
Expiration Date (as defined below), at the Exercise Price (as defined below) then in effect up to a maximum of $[●]. For purposes of clarification, each ADS represents one ordinary share, par value US$0.01 per share (the “Ordinary
Shares”), of the Company. Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in section 15. This Warrant is issued pursuant to that certain Convertible Note and Warrant Purchase
Agreement dated as of November [●], 2015 by and among the Company and the other parties named therein (as amended, supplemented or modified from time to time the “Purchase Agreement”). 

The Warrant ADSs issuable upon exercise of this Warrant are “Registrable Securities” as defined in the Purchase Agreement. 

  
 1 

 1. EXERCISE OF WARRANT. 

(a) Mechanics of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the
Holder on any day on or after the Issuance Date, in whole or in part, by delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise
this Warrant. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant ADSs available hereunder such that the
Outstanding Principal Amount has been reduced to zero and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Exercise
Notice is delivered to the Company. Partial exercises of this Warrant shall have the effect of lowering the Outstanding Principal Amount in an amount equal to the product of the number of Warrant ADSs purchased as part of the partial exercise and
the then applicable Exercise Price (as defined below). The Holder and the Company shall maintain records showing the date of such purchases of Warrant ADSs and the Outstanding Principal Amount. The Holder and any assignee, by acceptance
of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant ADSs hereunder, the Outstanding Principal Amount at any given time may be less than the Outstanding
Principal Amount stated on the face hereof. On or before the third (3rd) Business Day following the date on which the Company has received the Exercise Notice and representation letters and other documents reasonably requested by the
Depositary, the Company shall transmit by facsimile an acknowledgment of confirmation of receipt of the Exercise Notice to the Holder and The Bank of New York Mellon (the “Depositary”) for the ADSs. On or before the fifth (5th)
Business Day following the date on which the Company has received the Exercise Notice and representation letters and other documents reasonably requested by the Depositary (the “ADS Delivery Date”), the Company shall (A) issue and
deposit with the Depositary a number of Ordinary Shares that will be represented by the number of Warrant ADSs to which the Holder is entitled in respect of that exercise, (B) pay the fee of the Depositary for the issuance of that number of ADSs and
(C) instruct the Depositary to promptly execute and deliver to that Holder the Warrant ADSs subject to the applicable securities laws and regulations. No fractional ADSs are to be issued upon the exercise of this Warrant. If any fractional
share of an ADS would, except for the provisions of the prior sentence, be deliverable upon such exercise, the Company, in lieu of delivering such fractional share, shall pay to the exercising Holder an amount in cash equal to the Closing Sale Price
on the Principal Market of such fractional ADS on the date of exercise. The Company shall pay any and all taxes which may be payable with respect to the issuance and delivery of Warrant ADSs upon exercise of this Warrant.

In the case of Warrant ADSs issued with any restrictive legends, upon the Company’s receipt of notice and representation letters and other documents
reasonably requested by the Depositary from the Holder that (a) Warrant ADSs containing any restrictive legends have been resold in reliance on an effective resale registration statement relating to the resale of ADSs representing Warrant ADSs or
pursuant to Rule 144, or (b) Warrant ADSs containing any restrictive legends that are beneficially owned by it have become freely tradable pursuant to Rule 144 without the requirement for the Company to be in compliance with the current public
information required under Rule 144 as to such Warrant ADSs and without volume or manner-of-sale restrictions, accompanied by a certificate or certificates evidencing the Warrant ADSs, if any, that have been sold pursuant to clause (a) above or for
which the legend is to be removed pursuant to clause (b) above, the Company shall within eleven (11) Business Days cause to be issued and delivered for deposit to the Depositary irrevocable instructions that the Depositary deliver ADSs without any
restrictive legend with respect to such Warrant ADSs to or upon the directions of the Holder and such other documents as the Depositary may reasonably require from the Company in connection therewith. From and after the date the Company receives the
notice specified in clause (b) above, Warrant ADSs which are subsequently issued upon exercise of this Warrant shall not bear a restrictive legend, provided that the conditions specified in clause (b) above are still satisfied at such time. If the
Company fails to cause the Depositary to deliver ADSs representing Warrant ADSs pursuant to the terms of this Warrant, then the Company shall fully indemnify the Holder for any liabilities, judgments, costs, losses, fines and expenses of any kind
the Holder incurs in connection with such failure. Any fees, including fees of the Depositary, associated with the removal of restrictive legends from any Warrant ADSs and the deposit of Warrant ADSs to the Depositary for the issuance of ADSs shall
be borne by the Company. 

  
 2 

 (b) Exercise Price. For purposes of this Warrant, “Exercise
Price” means $[●], subject to adjustment as provided herein. 
 (c) Payment of Exercise Price. The Company
shall promptly, and in no case later than the third (3rd) Business Day immediately following receipt of an Exercise Notice confirm such receipt via facsimile to the number specified in such Exercise Notice. Within two (2) Trading Days of
the date of the Exercise Notice, the Holder shall make payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant ADSs as to which this Warrant is being exercised (the “Aggregate Exercise
Price”) in cash or by wire transfer of immediately available funds. 
 (d) Cashless Exercise. The Holder may exercise
this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise pursuant to paragraph (c) above, elect instead to receive upon such exercise the net
number of ADSs determined according to the following formula (a “Cashless Exercise”): 
  

			
		  	X = Y×(A-B)
            A
		
	where:	  	
		
		  	X = the net number of ADSs to be issued to the Holder.
		
		  	Y = the number of Warrant ADSs with respect to which this Warrant is being exercised.
		
		  	A = the Closing Sale Price of the ADSs on the Principal Market immediately prior to (but no including) the Exercise Date.
		
		  	B = the Exercise Price.

 (e) Rule 144. For purposes of Rule 144(d) promulgated under the Securities Act, as in effect
on the date hereof, it is intended that any Warrant ADSs issued in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for such Warrant ADSs shall be deemed to have commenced, on the date this Warrant was
originally issued pursuant to the Purchase Agreement. 
 (f) Company’s Failure to Timely Deliver Securities. 

(i) If the Company fails to deliver to the Holder the number of ADSs to which such Holder is entitled upon exercise by the ADS Delivery Date
(an “Exercise Failure”), then: 
 (A) the Company shall pay damages to the Holder, for the ADS Delivery Date and each
subsequent day on which such Exercise Failure continues, an amount equal to an annual interest rate of two percent (2.00%) of the product of (x) the sum of the number of ADSs not issued to the Holder on or prior to the ADS Delivery Date and to which
the Holder is entitled, times (y) the Closing Sale Price of the ADSs on the ADS Delivery Date, and 
 (B) the Holder, upon written notice
to the Company, may, no later than two (2)Business Days after the ADS Delivery Date, at its sole discretion, void its Exercise Notice with respect to, and retain or have returned, as the case may be, any portion of this Warrant that has not been
converted pursuant to such Exercise Notice. 

  
 3 

 (ii) Without prejudice to any other remedies available to the Holder, upon an Exercise Failure,
in the event that the Closing Sale Price of the ADS on the date of the ADS Delivery Date is higher than the Closing Sale Price of the ADS on the actual date of delivery of the required ADSs by the Company, the Holder shall be entitled to an amount
equal to the product of (i) the number of ADSs that the Company fails to deliver to the Holder on the ADS Delivery Date and (ii) the difference between the Closing Sale Price of the ADS on the date of the ADS Delivery Date and the Closing Sale Price
of the ADS on the actual date of delivery of the required ADSs by the Company, to be paid by the Company to the Holder in cash, no later than five (5) Business Days after the actual date of delivery of the required ADSs by the Company. The Holder
shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Exercise Failure. Notwithstanding the foregoing, without prejudice to any other remedies available to the Holder, in the event that an Exercise
Failure continues for twenty (20) Business Days or more after the ADS Delivery Date, the Holder shall be entitled to an amount equal to the product of (x) the number of ADSs that the Company fails to deliver to the Holder on the ADS Delivery Date
and (y) the Closing Sale Price of the ADS on the date of the ADS Delivery Date, to be paid by the Company to the Holder in cash, no later than five (5) Business Days after notification by the Holder of its election of this option. The Holder shall
provide the Company written notice indicating the amounts payable to the Holder in respect of the Exercise Failure. 
 (iii) In case of an
Exercise Failure, the rights of the Holder pursuant to paragraph (i) above shall be without prejudice to any other rights or remedies available to the Holder under this Warrant or under applicable laws in the event of an Exercise Failure. 

(g) Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the
Warrant ADSs or the Outstanding Principal Amount, the Company shall promptly issue to the Holder the number of Warrant ADSs that are not disputed. 

2. ADJUSTMENT OF EXERCISE PRICE. The Exercise Price shall be adjusted from time to time as follows: 

(a) Adjustment upon Subdivision or Combination of Ordinary Shares or ADSs. If the Company at any time on or after the Issuance
Date subdivides (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding Ordinary Shares or ADSs into a greater number of shares, the Exercise Price in effect
immediately prior to such subdivision shall be proportionately reduced. If the Company at any time on or after the Issuance Date combines (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise)
one or more classes of its outstanding Ordinary Shares or ADSs into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall be proportionately increased. Any adjustment under this paragraph (a) shall
become effective at the close of business on the date the subdivision or combination becomes effective. 
 (b) Other
Events. If any event occurs of the type contemplated by the provisions of this section 2 but not expressly provided for by such provisions, then the Company’s Board of Directors will make an appropriate adjustment in the Exercise Price
so as to protect the rights of the Holder; provided that no such adjustment pursuant to this section 2(b) will increase the Exercise Price unless as otherwise determined pursuant to this section 2. 

(c) Exceptions to Adjustment. Anything herein to the contrary notwithstanding, there shall be no adjustment to the Exercise Price
with respect to any Excluded Issuance. 
 3. RIGHTS UPON DISTRIBUTION OF ASSETS. If the Company shall declare or make any
dividend or other distribution of its assets (or rights to acquire its assets) to holders of Ordinary Shares or ADSs, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities,
property or options by way of a dividend, stock split, spin off, subdivision, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this
Warrant, then, in each such case the Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders of Ordinary Shares entitled to receive the Distribution shall be reduced, effective as
of the close of business on such record date, to a price determined by multiplying such Exercise Price by a fraction of which (i) the numerator shall be the Closing Bid Price of the Ordinary Shares or ADSs, as applicable, on the Trading Day
immediately preceding such record date minus the value of the Distribution (as determined in good faith by the Company’s Board of Directors) applicable to one Ordinary Share or ADS, as applicable, and (ii) the denominator shall be the Closing
Bid Price of the Ordinary Shares or ADSs, as applicable on the Trading Day immediately preceding such record date; provided that in the event that the Distribution is of securities (“Other Securities”) of a company which
are traded on a national securities exchange or a national automated quotation system, then the Holder may elect to receive a warrant to purchase Other Securities in lieu of an adjustment in the Exercise Price, the terms of which shall be identical
to those of this Warrant, except that such warrant shall be exercisable into the number of Other Securities that would have been payable to the Holder pursuant to the Distribution had the Holder exercised this Warrant immediately prior to such
record date and with an aggregate exercise price of zero. 

  
 4 

 4. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS. 

(a) Purchase Rights. In addition to any adjustments pursuant to section 2 above, if at any time the Company grants, issues or
sells any rights to purchase stock, warrants, securities or other property pro rata to all the record holders of Ordinary Shares or ADSs (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable
to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of Ordinary Shares or ADSs acquirable upon complete exercise of this Warrant (without regard to any limitations on the
exercise of this Warrant) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Ordinary Shares or ADSs are to be
determined for the grant, issue or sale of such Purchase Rights. 
 (b) Fundamental Transactions. In connection with any
Fundamental Transaction, the Company shall make appropriate provision so that this Warrant shall thereafter be exercisable for shares of the Successor Entity based upon the conversion ratio or other consideration payable in the Fundamental
Transaction. The provisions of this section shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the exercise of this Warrant. 

In the event that any Person becomes a Parent Entity of the Company, such Person shall assume all of the obligations of the Company under this
Warrant with the same effect as if such Person had been named as the Company herein. 
 5. NONCIRCUMVENTION. The Company
hereby covenants and agrees that the Company will not, by amendment of its memorandum and articles of association or other constitutional documents or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement,
dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and
take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any Ordinary Shares underlying the ADSs receivable upon the
exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable ADSs upon the exercise of
this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued Ordinary Shares, solely for the purpose of effecting the exercise of this Warrant, 100%
of the number of Ordinary Shares issuable upon exercise of this Warrant then outstanding (without regard to any limitations on exercise). 

6. WARRANT HOLDER NOT DEEMED A SHAREHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such
Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company or a holder of ADSs for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any
reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant ADSs
which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this
Warrant or otherwise) or as a shareholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. 

  
 5 

 7. REISSUANCE OF WARRANTS. 

(a) Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company,
whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with section 7(d)), registered as the Holder may request, representing any portion of the then Outstanding Principal Amount being
transferred by the Holder and, if less than the total amount of the applicable Outstanding Principal Amount is being transferred, a new Warrant (in accordance with section 7(d)) to the Holder representing the portion of the Outstanding Principal
Amount not being transferred. 
 (b) Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of
mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with section 7(d)) representing the then Outstanding Principal Amount. 

(c) Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the
principal office of the Company, for a new Warrant or Warrants (in accordance with section 7(d)) representing in the aggregate the then applicable Outstanding Principal Amount, and each such new Warrant will represent the right to purchase such
portion of Outstanding Principal Amount as is designated by the Holder at the time of such surrender. 
 (d) Issuance of New
Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the
then applicable Outstanding Principal Amount (or in the case of a new Warrant being issued pursuant to section 7(a) or section 7(c), such principal amount designated by the Holder which, when added to the principal amount of the other new Warrants
issued in connection with such issuance, does not exceed the then applicable Outstanding Principal Amount), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have
the same rights and conditions as this Warrant. 
 8. NOTICES. Whenever notice is required to be given under this Warrant,
unless otherwise provided herein, such notice shall be given in accordance with the Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable
detail a description of such action and the reason therefore. 
 9. AMENDMENT AND WAIVER. Except as otherwise provided
herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. 

10. GOVERNING LAW AND DISPUTE RESOLUTION.

(a) This Warrant shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation
and performance of this Warrant shall be governed by, the internal laws of the State of New York without regard to any choice of laws or conflict of laws provisions that would require the application of the laws of any other jurisdiction. 

(b) Any dispute, controversy, difference, proceedings or claim arising out of or relating to this Warrant, including the existence, validity,
interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally resolved by arbitration administered by the Hong Kong International
Arbitration Centre (“HKIAC”) under the Hong Kong International Arbitration Centre Administered Arbitration rules in force when the notice of arbitration is submitted. 

  
 6 

 (c) The seat of arbitration shall be Hong Kong. The number of arbitrators shall be three. The
arbitration proceedings shall be conducted in English. 
 (d) The arbitrators shall decide any dispute submitted by the parties to the
arbitration strictly in accordance with the substantive laws of New York and shall not apply any other substantive laws. 
 (e) Each of the
Parties shall cooperate with any party to the dispute in making full disclosure of and providing complete access to all information and documents requested by such party in connection with such arbitration proceedings, subject only to any
confidentiality obligations binding on the party receiving the request. 
 (f) The award of the arbitration tribunal shall be final and
binding upon the disputing parties, and any party to the dispute may apply to a court of competent jurisdiction for enforcement of such award. 

11. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be
construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. 

12. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for
any failure by the Company to comply with the terms of this Warrant. 
 13. TRANSFER. This Warrant may be offered for sale,
sold, transferred or assigned without the consent of the Company. 
 14. WARRANT AGENT. The Company shall serve as warrant
agent under this Warrant. Upon 30 days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to
which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholder services business shall be a successor warrant agent under
this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be given to the Holder in accordance with section 8. 

15. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings: 

(a) “ADS” means an American Depositary Share, issued pursuant to the Deposit Agreement or any applicable restricted American
Depositary Share letter agreement, representing one (1) Share as of the date of this Warrant, and deposited with the Depositary or its designee, including an American Depositary Share that is so issued with restrictive legends. 

(b) “ADS Delivery Date” shall have the meaning set forth in section 1(a). 

(c) “Aggregate Exercise Price” shall have the meaning set forth in section 1(d). 

(d) “Bloomberg” means Bloomberg L.P. (or any successor thereto). 

  
 7 

 (e) “Business Day” means any day other than Saturday, Sunday or other day on
which commercial banks in The City of New York, the People’s Republic of China or Hong Kong are authorized or required by law to remain closed. 

(f) “Cashless Exercise” shall have the meaning set forth in section 1(e). 

(g) “Closing Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing
bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price or the
closing trade price, as the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities
exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or
if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or
last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the “OTCPink” marketplace by OTC Markets
Group Inc. (formerly Pink Sheets LLC). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may
be, of such security on such date shall be the fair market value as mutually determined by the Company’s Board of Directors and the Holder. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock
combination or other similar transaction during the applicable calculation period. 
 (h) “Company” shall have the meaning
set forth in the Preamble. 
 (i) “Convertible Securities” means any shares or other security (other than Options) that is
at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any Ordinary Shares or ADSs. 

(j) “Depositary” shall have the meaning set forth in section 1(a). 

(k) “Distribution” shall have the meaning set forth in section 3. 

(l) “Employee Incentive Plan” means the Company’s incentive plan or plans adopted for its directors, officers,
employees and consultants and approved by the board of the Company. 
 (m) “Excluded Issuance” means any issuance or sale
(or deemed issuance or sale) by the Company after the Issuance Date of (a) Ordinary Shares or ADSs issued upon the conversion or exercise of Options or Convertible Securities issued prior to the Issuance Date, provided that such securities are not
amended after the Issuance Date to increase the number of Ordinary Shares or ADSs issuable thereunder, lower the exercise or conversion price thereof or in a manner that otherwise adversely affects the Holder; (b) Ordinary Shares or ADSs issued upon
the exercise of this Warrant or pursuant to any transaction contemplated under the Purchase Agreement; or (c) all Shares, Convertible Securities and Options that are issued under the Employee Incentive Plan. 

(n) “Exercise Price” shall have the meaning set forth in section 1(b). 

(o) “Exercise Notice” shall have the meaning set forth in section 1(a). 

(p) “Expiration Date” means the date sixty (60) months after the Issuance Date or, if such date falls on a day other than a
Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday. 

  
 8 

 (q) “Fundamental Transaction” means that the Company shall, directly or
indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all
of the properties or assets of the Company to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding Ordinary Shares (not including any
Ordinary Shares held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the outstanding Ordinary Shares (not including any Ordinary Shares
held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), (v) reorganize, recapitalize or reclassify its
Ordinary Shares, or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Ordinary Shares. 

(r) “HKIAC” shall have the meaning set forth in section 10(b). 

(s) “Holder” shall have the meaning set forth in the Preamble. 

(t) “Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of China. 

(u) “Options” means any rights, warrants or options to subscribe for or purchase Ordinary Shares, ADSs or Convertible
Securities. 
 (v) “Ordinary Shares” means (i) the Company’s Ordinary Shares, par value US$0.01 per share, and
(ii) any share capital into which such Ordinary Shares shall have been changed or any share capital resulting from a reclassification of such Ordinary Shares. 

(w) “Other Securities” shall have the meaning set forth in section 3(b). 

(x) “Outstanding Principal Amount” means the outstanding principal amount of this Warrant applicable from time to time as
calculated in accordance with the terms of this Warrant. The initial Outstanding Principal Amount is $[●]. 
 (y) “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of
the date of consummation of the Fundamental Transaction. 
 (z) “Person” means an individual, a limited liability company,
a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

(aa) “Principal Market” means The NASDAQ Global Market. 

(bb) “Purchase Agreement” shall have the meaning set forth in the Preamble. 

(cc) “Purchase Rights” shall have the meaning set forth in section 4(a). 

(dd) “Securities Act” means the Securities Act of 1933, as amended. 

  
 9 

 (ee) “Successor Entity” means the Person (or, if so elected by the Holder, the
Parent Entity of such Person) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity of such Person) with which such Fundamental Transaction shall have been entered into.

 (ff) “Trading Day” means any day on which the ADSs are traded on the Principal Market, or, if the Principal Market is
not the principal trading market for the ADSs, then on the principal securities exchange or securities market on which the ADSs are then traded; provided that “Trading Day” shall not include any day on which the ADSs are scheduled to trade
on such exchange or market for less than 4.5 hours or any day that the ADSs are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of
trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time). 
 (gg) “Warrant” shall have
the meaning set forth in the Preamble. 
 (hh) “Warrant ADSs” shall have the meaning set forth in the Preamble. 

[Signature Page Follows] 

  
 10 

 IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase American
Depositary Shares to be duly executed as of the Issuance Date set out above. 
  

			
	THE9 LIMITED
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 11 

 EXHIBIT A 

EXERCISE NOTICE 
 TO BE
EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS 
 WARRANT TO PURCHASE AMERICAN DEPOSITARY SHARES 

THE9 LIMITED 
 The undersigned holder
hereby exercises the right to purchase                  American Depositary Shares (“Warrant ADSs”) of The9 Limited, an exempted company
incorporated with limited liability and existing under the laws of the Cayman Islands (the “Company”), evidenced by the attached Warrant to American Depositary Shares (the “Warrant”). Capitalized terms used
herein and not otherwise defined shall have the respective meanings set forth in the Warrant. 
 1. Form of Exercise Price. The
Holder’s payment of the Exercise Price shall be made as: 
  

			
	                                	  	a “Cash Exercise” with respect to                      Warrant ADSs; and/or
		
	
                          
      
	  	a “Cashless Exercise” with respect to                      Warrant ADSs (only if permitted pursuant to Section
1(d) of the Warrant).

 2. Payment of Exercise Price. In the event that the Holder conducted a Cash Exercise with respect to some or
all of the Warrant ADSs to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $         to the Company in accordance with the terms of the Warrant. 

3. Delivery of Warrant ADSs. The Company shall deliver to the Holder
                     Warrant ADSs in accordance with the terms of the Warrant. 

4. Confirmation. Please send confirmation of receipt of this Exercise Notice to the following facsimile number:
                    . 
 Date:
             ,         
 Name of
Registered Holder 
 By: 
 Name: 

Title: 

 ACKNOWLEDGMENT 

The Company hereby acknowledges this Exercise Notice and hereby directs The Bank of New York Mellon to issue the above indicated number of American Depositary
Shares in accordance with the Depositary Instructions dated             , 20     from the Company and acknowledged and agreed to by The Bank of New York Mellon Trust
Company. 
 THE9 LIMITED 
 By: 

Name: 
 Title: 

 Exhibit C 

Form of Tranche A Warrants, Tranche B Warrants and Tranche C Warrants 

 Exhibit C – Form of Tranche A Warrants, Tranche B Warrants and Tranche C Warrants 

 THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR IN A TRANSACTION NOT SUBJECT TO THE REGISTRATION REQUIREMENTS OF THAT ACT, OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL
APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION
DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS. 
 THE9 LIMITED 

WARRANT TO PURCHASE AMERICAN DEPOSITARY SHARES

  

			
	Warrant No.:	  	[●]
	Outstanding Principal Amount:	  	[●] (subject to adjustments in accordance with the terms of this Warrant)
	Date of Issuance:	  	[●] (“Issuance Date”)

 The9 Limited, an exempted company incorporated with limited liability and existing under the laws of the
Cayman Islands (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Splendid Days Limited, the registered holder hereof or its permitted assigns
(the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, pursuant to this warrant (including any warrants issued in exchange, transfer or replacement hereof, this “Warrant”)
to purchase ADSs (as defined under the Section headed “Certain Definitions” hereof, and such ADSs the “Warrant ADSs”), at any time or times on or after the Issuance Date, but not after 11:59 p.m., New York time, on the
Expiration Date (as defined below), at the Exercise Price (as defined below) then in effect up to a maximum of US$[●] (subject to adjustments in accordance with the terms of this Warrant). For purposes of clarification, each ADS
represents one ordinary share, par value $0.01 per share (the “Ordinary Shares”), of the Company. Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in section 15. This
Warrant is issued pursuant to that certain Convertible Note and Warrant Purchase Agreement dated as of November [●], 2015 by and among the Company and the other parties named therein (as amended, supplemented or modified from time to time the
“Purchase Agreement”). 
 The Warrant ADSs issuable upon exercise of this Warrant are “Registrable Securities” as
defined in the Purchase Agreement. 

  
 1 

 1. EXERCISE OF WARRANT. 

(a) Mechanics of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day
on or after the Issuance Date, in whole or in part, by delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this
Warrant. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant ADSs available hereunder such that the Outstanding
Principal Amount has been reduced to zero and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Exercise Notice is
delivered to the Company. Partial exercises of this Warrant shall have the effect of lowering the Outstanding Principal Amount in an amount equal to the product of the number of Warrant ADSs purchased as part of the partial exercise and the then
applicable Exercise Price (as defined below). The Holder and the Company shall maintain records showing the date of such purchases of Warrant ADSs and the Outstanding Principal Amount. The Holder and any assignee, by acceptance of this
Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant ADSs hereunder, the Outstanding Principal Amount at any given time may be less than the Outstanding Principal
Amount stated on the face hereof. On or before the third (3rd) Business Day following the date on which the Company has received the Exercise Notice and representation letters and other documents reasonably requested by the Depositary, the
Company shall transmit by facsimile an acknowledgment of confirmation of receipt of the Exercise Notice to the Holder and The Bank of New York Mellon (the “Depositary”) for the ADSs. On or before the fifth (5th) Business Day
following the date on which the Company has received the Exercise Notice (the “ADS Delivery Date”), the Company shall (A) issue and deposit with the Depositary a number of Ordinary Shares that will be represented by the number of
Warrant ADSs to which the Holder is entitled in respect of that exercise, (B) pay the fee of the Depositary for the issuance of that number of ADSs and (C) instruct the Depositary to promptly execute and deliver to that Holder the Warrant ADSs
subject to the applicable securities laws and regulations. No fractional ADSs are to be issued upon the exercise of this Warrant. If any fractional share of an ADS would, except for the provisions of the prior sentence, be deliverable upon
such exercise, the Company, in lieu of delivering such fractional share, shall pay to the exercising Holder an amount in cash equal to the Closing Sale Price on the Principal Market of such fractional ADS on the date of exercise. The Company
shall pay any and all taxes which may be payable with respect to the issuance and delivery of Warrant ADSs upon exercise of this Warrant.
 In the case of
Warrant ADSs issued with any restrictive legends, upon the Company’s receipt of notice and representation letters and other documents reasonably requested by the Depositary from the Holder that (a) Warrant ADSs containing any restrictive
legends have been resold in reliance on an effective resale registration statement relating to the resale of ADSs representing Warrant ADSs or pursuant to Rule 144, or (b) Warrant ADSs containing any restrictive legends that are beneficially owned
by it have become freely tradable pursuant to Rule 144 without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Warrant ADSs and without volume or manner-of-sale restrictions,
accompanied by a certificate or certificates evidencing the Warrant ADSs, if any, that have been sold pursuant to clause (a) above or for which the legend is to be removed pursuant to clause (b) above, the Company shall within eleven (11) Business
Days cause to be issued and delivered for deposit to the Depositary irrevocable instructions that the Depositary deliver ADSs without any restrictive legend with respect to such Warrant ADSs to or upon the directions of the Holder and such other
documents as the Depositary may reasonably require from the Company in connection therewith. From and after the date the Company receives the notice specified in clause (b) above, Warrant ADSs which are subsequently issued upon exercise of this
Warrant shall not bear a restrictive legend, provided that the conditions specified in clause (b) above are still satisfied at such time. If the Company fails to cause the Depositary to deliver ADSs representing Warrant ADSs pursuant to the terms of
this Warrant, then the Company shall fully indemnify the Holder for any liabilities, judgments, costs, losses, fines and expenses of any kind the Holder incurs in connection with such failure. Any fees, including fees of the Depositary, associated
with the removal of restrictive legends from any Warrant ADSs and the deposit of Warrant ADSs to the Depositary for the issuance of ADSs shall be borne by the Company. 

(b) Exercise Price. For purposes of this Warrant, “Exercise Price” means $[●], subject to adjustment
as provided herein. 

  
 2 

 (c) Payment of Exercise Price. The Company shall promptly, and in no case later
than the third (3rd) Business Day immediately following receipt of an Exercise Notice confirm such receipt via facsimile to the number specified in such Exercise Notice. Within two (2) Trading Days of the date of the Exercise Notice, the
Holder shall make payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant ADSs as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in cash or by wire
transfer of immediately available funds. Notwithstanding the preceding, if the Holder has delivered a copy of a Loan Waiver Notice to the Company, then the Holder shall not be required to make a payment of the Aggregate Exercise Price to the
Company, and the Company shall observe its obligations under this Warrant as if the Aggregate Exercise Price had been paid in full. 
 (d)
Company’s Failure to Timely Deliver Securities. 
 (i) If the Company fails to deliver to the Holder the number of Warrant ADSs
to which such Holder is entitled upon exercise of this Warrant by the ADS Delivery Date (an “Exercise Failure”), then: 

(A) the Company shall pay damages to the Holder, for the ADS Delivery Date and each subsequent day on which such Exercise Failure continues,
an amount equal to an annual interest rate of two percent (2.00%) of the product of (x) the sum of the number of ADSs not issued to the Holder on or prior to the ADS Delivery Date and to which the Holder is entitled, times (y) the Closing Sale Price
of the ADSs on the ADS Delivery Date, and 
 (B) the Holder, upon written notice to the Company, may, no later than two (2) Business Days
after the ADS Delivery Date, at its sole discretion, void its Exercise Notice with respect to, and retain or have returned, as the case may be, any portion of this Warrant that has not been converted pursuant to such Exercise Notice. 

(ii) Without prejudice to any other remedies available to the Holder, upon an Exercise Failure, in the event that the Closing Sale Price of
the ADS on the date of the ADS Delivery Date is higher than the Closing Sale Price of the ADS on the actual date of delivery of the required ADSs by the Company, the Holder shall be entitled to an amount equal to the product of (i) the number of
ADSs that the Company fails to deliver to the Holder on the ADS Delivery Date and (ii) the difference between the Closing Sale Price of the ADS on the date of the ADS Delivery Date and the Closing Sale Price of the ADS on the actual date of delivery
of the required ADSs by the Company, to be paid by the Company to the Holder in cash, no later than five (5) Business Days after the actual date of delivery of the required ADSs by the Company. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Exercise Failure. Notwithstanding the foregoing, without prejudice to any other remedies available to the Holder, in the event that an Exercise Failure continues for twenty (20) Business
Days or more after the ADS Delivery Date, the Holder shall be entitled to an amount equal to the product of (x) the number of ADSs that the Company fails to deliver to the Holder on the ADS Delivery Date and (y) the Closing Sale Price of the ADS on
the date of the ADS Delivery Date, to be paid by the Company to the Holder in cash, no later than five (5) Business Days after notification by the Holder of its election of this option. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Exercise Failure. 
 (iii) In case of an Exercise Failure, the rights of the Holder
pursuant to paragraph (i) above shall be without prejudice to any other rights or remedies available to the Holder under this Warrant or under applicable laws in the event of an Exercise Failure. 

(e) Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the
Warrant ADSs or the Outstanding Principal Amount, the Company shall promptly issue to the Holder the number of Warrant ADSs that are not disputed. 

  
 3 

 2. ADJUSTMENT OF EXERCISE PRICE. The Exercise Price shall be adjusted from time
to time as follows: 
 (a) Adjustment upon Subdivision or Combination of Ordinary Shares or ADSs. If the Company at any time on
or after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding Ordinary Shares or ADSs into a greater number of shares, the
Exercise Price in effect immediately prior to such subdivision shall be proportionately reduced. If the Company at any time on or after the Issuance Date combines (by any stock split, stock dividend, recapitalization, reorganization, scheme,
arrangement or otherwise) one or more classes of its outstanding Ordinary Shares or ADSs into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall be proportionately increased. Any adjustment
under this paragraph (a) shall become effective at the close of business on the date the subdivision or combination becomes effective. 

(b) Adjustments for Dilutive Issuances. 

(i) For the purposes of this section 2(b), “New Securities” means all Ordinary Shares (directly or in the form of ADSs),
Options or Convertible Securities issued by the Company after the Issuance Date other than (i) the convertible notes or warrants of the Company issued to the Holder in accordance with the Purchase Agreement, (ii) any Ordinary Shares issued upon the
exercise of such convertible notes or warrants, (iii) with respect only to the three-year period from the Issuance Date, any Ordinary Shares, Options or Convertible Securities that are issued under the Employee Incentive Plan in the amount up to 15%
of the Company’s total outstanding and issued shares on a fully-diluted and converted basis and (iv) with respect to any Extension Period, all Ordinary Shares, Convertible Securities and Options that are issued under the Employee Incentive
Plan. 
 (ii) Adjustment of Exercise Price upon Issuance of New Securities. In the event of an issuance of New Securities for a
consideration per Ordinary Share (as adjusted by the then applicable ADS-to-Ordinary Share ratio if the consideration per Ordinary Share for the issuance of New Securities is expressed as an amount per ADS) received by the Company less than the
Exercise Price in effect immediately prior to such issue, then and in such event, such Exercise Price shall be reduced, concurrently with such issue, to a price determined as set forth below: 

NEP = OEP * (OS + (NP/OEP))/(OS + NS) 
 WHERE: 

 

			
	(A)	  	NEP = the new Exercise Price,
		
	(B)	  	OEP = the Exercise Price in effect immediately before the issuance of the New Securities,
		
	(C)	  	OS = the total outstanding Ordinary Shares immediately before the issuance of the New Securities,
		
	(D)	  	NP = the total consideration received for the issuance or sale of the New Securities, and
		
	(E)	  	NS = the number of New Securities issued or sold or deemed issued or sold.

 (iii) Deemed Issuance of New Securities. In the event the Company at any time or from time to time
after the Issuance Date shall issue any Options or Convertible Securities or shall fix a record date for the determination of holders of any series of securities entitled to receive any such Options or Convertible Securities, then the maximum number
of Ordinary Shares (as set forth in the instrument relating thereto without regard to any provisions contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible Securities
and Options therefor, the conversion or exchange of such Convertible Securities or the exercise of such Options, shall be deemed to be New Securities issued as of the time of such issue or, in case such a record date shall have been fixed, as of the
close of business on such record date, provided that New Securities shall not be deemed to have been issued unless the consideration per Ordinary Share (determined pursuant to section 2(b)(iv) hereof and adjusted by the then applicable
ADS-to-Ordinary Share ratio if the consideration per Ordinary Share for the issuance of New Securities is expressed as an amount per ADS) of such New Securities would be less than the Exercise Price, as provided for by section 2(b)(ii), in effect on
the date of and immediately prior to such issue or record date, as the case may be, and provided further that in any such case in which New Securities are deemed to be issued: 

(A) no further adjustment in the Exercise Price shall be made upon the subsequent issue of Convertible Securities or Ordinary Shares upon the
exercise of such Options or conversion or exchange of such Convertible Securities or upon the subsequent issue of Options for Convertible Securities or Ordinary Shares; 

  
 4 

 (B) if such Options or Convertible Securities by their terms provide, with the passage of time
or otherwise, for any change in the consideration payable to the Company, or change in the number of Ordinary Shares issuable, upon the exercise, conversion or exchange thereof, the Exercise Price computed upon the original issue thereof (or upon
the occurrence of a record date with respect thereto), and any subsequent adjustments based thereon, shall, upon any such change becoming effective, be recomputed to reflect such change insofar as it affects such Options or the rights of conversion
or exchange under such Convertible Securities; 
 (C) no readjustment pursuant to section 2(b)(iii)(B) shall have the effect of increasing
the Exercise Price then in effect (as adjusted for any share dividends, combinations, reclassifications or splits with respect to such Ordinary Shares and the like); and 

(D) upon the expiration of any such Options or any rights of conversion or exchange under such Convertible Securities that shall not have
been exercised, the Exercise Price computed upon the original issue thereof (or upon the occurrence of a record date with respect thereto) and any subsequent adjustments based thereon shall, upon such expiration, be recomputed as if: 

(1) in the case of Convertible Securities or Options for Ordinary Shares, the only New Securities issued were the Ordinary Shares, if any,
actually issued upon the exercise of such Options or the conversion or exchange of such Convertible Securities, and the consideration received therefor was the consideration actually received by the Company for the issue of such exercised Options
plus the consideration actually received by the Company upon such exercise or for the issue of all such Convertible Securities that were actually converted or exchanged, plus the additional consideration, if any, actually received by the Company
upon such conversion or exchange; 
 (2) in the case of Options for Convertible Securities, only the Convertible Securities, if any,
actually issued upon the exercise thereof were issued at the time of issue of such Options, and the consideration received by the Company for the New Securities deemed to have been then issued was the consideration actually received by the Company
for the issue of such exercised Options, plus the consideration deemed to have been received by the Company (determined pursuant to section 2(b)(iv)) upon the issue of the Convertible Securities with respect to which such Options were actually
exercised; and 
 (3) if such record date shall have been fixed and such Options or Convertible Securities are not issued on the date fixed
therefor, the adjustment previously made in the Exercise Price which became effective on such record date shall be canceled as of the close of business on such record date, and thereafter the Exercise Price shall be adjusted pursuant to this section
2(c)(iii) as of the actual date of their issuance. 
 (iv) Determination of Consideration. Subject to applicable laws, for purposes
of this section 2(c), the consideration received by the Company for the issuance of any New Securities shall be computed as follows: 
 (A)
Cash and Property. Such consideration shall: 
 (1) insofar as it consists of cash, be computed at the aggregate amount of cash
received by the Company excluding amounts paid or payable for accrued interest or accrued dividends and excluding any discounts, commissions or placement fees payable by the Company to any underwriter or placement agent in connection with the
issuance of any New Securities; 
 (2) insofar as it consists of property other than cash, be computed at the fair market value thereof at
the time of such issue, as determined in good faith by the Board of Directors of the Company and agreed to by the Holder; and 
 (3) in the
event New Securities are issued together with Ordinary Shares or other securities or other assets of the Company for consideration which covers both, be the proportion of such consideration so received, computed as provided in paragraphs (1) and (2)
above, as reasonably determined in good faith by the Board of Directors of the Company and agreed to by the Holder. 

  
 5 

 (B) Options and Convertible Securities. The consideration per Ordinary Share received by
the Company for New Securities deemed to have been issued pursuant to section 2(b)(iii) hereof, relating to Options and Convertible Securities, shall be determined by dividing (i) the total amount, if any, received or receivable by the Company as
consideration for the issue of such Options or Convertible Securities (determined in the manner described in section 2(b)(iv)(A) above), plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto,
without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for
Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities by (ii) the maximum number of Ordinary Shares (as set forth in the instruments relating thereto, without
regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities. 

(c) Other Events. In the event that the Company (or any Subsidiary) takes any action to which the provisions hereof are not strictly
applicable or if any event occurs of the type contemplated by the provisions of section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other
rights with equity features), which has the direct effect of adversely affecting the Holder’s proportionate interest in the equity of the Company, then, to the extent that the Holder’s proportionate interest in the equity of the Company is
so adversely affected thereby, an appropriate adjustment in the Exercise Price shall be made so as to protect the rights of the Holder under this Warrant. 

(d) Successive Adjustments; Multiple Adjustments. After an adjustment is made to the Exercise Price under section 2, any subsequent
event requiring an adjustment under section 2 shall cause an adjustment to such Exercise Price, as so adjusted. 
 (e) Certificates as
to Adjustments. Upon occurrence of each adjustment or readjustment of the Exercise Price, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and deliver to the Holder a
certificate setting forth such adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon written request of the Holder at any time, deliver to the Holder a like certificate
setting forth such adjustments and readjustments, the Exercise Price in effect at the time and the then applicable Outstanding Principal Amount. 

3. RIGHTS UPON DISTRIBUTION OF ASSETS.

(a) Cash Dividend. If the Company pays any cash dividend to holders of Ordinary Shares or ADSs, it shall simultaneously pay to the
Holder the amount by which any dividend that would have been payable in respect of the Warranty ADSs had this Warrant been exercised prior to the relevant record date for the payment of such cash dividend exceeds the Notional Interest Amount then
accrued. 
 (b) Dividend in Kind. If the Company pays any dividend in kind in any financial year to holders of Ordinary Shares
or ADSs, the Company shall simultaneously pay to the Holder the same dividend in kind on a per ADS basis as if the Warrant had been exercised prior to the relevant record date. 

4. FUNDAMENTAL TRANSACTIONS. In addition to and not in substitution for any other rights hereunder, prior to the consummation of
any Fundamental Transaction pursuant to which holders of ADSs or Ordinary Shares are entitled to receive securities or other assets with respect to or in exchange for ADSs or Ordinary Shares (a “Corporate Event”), the Company shall
make appropriate provision to ensure that the Holder shall thereafter have the right to receive upon the exercise of this Warrant, in lieu of ADSs or other assets otherwise receivable upon such exercise, such securities or other assets to which the
Holder would have been entitled had such ADSs or other assets been held by the Holder immediately prior to the consummation of such Corporate Event (without taking into account any limitations or restrictions on the exercise of this Warrant). For
the avoidance of doubt, the Holder shall not be permitted to receive such securities or assets pursuant to this section 4 and continue to hold the Warrant. 

In the event that the Company becomes a Subsidiary of any Person, such Person shall assume all of the obligations of the Company under this Warrant with the
same effect as if such Person had been named as the Company herein. 

  
 6 

 5. NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company
will not, by amendment of its memorandum and articles of association or other constitutional documents or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any
other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the
rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any Ordinary Shares underlying the ADSs receivable upon the exercise of this Warrant above the Exercise Price then
in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable ADSs upon the exercise of this Warrant, and (iii) shall, so long as this Warrant
is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued Ordinary Shares, solely for the purpose of effecting the exercise of this Warrant, 100% of the number of Ordinary Shares issuable upon
exercise of this Warrant then outstanding (without regard to any limitations on exercise). 
 6. WARRANT HOLDER NOT DEEMED A
SHAREHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the
Company or a holder of ADSs for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company
or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or
subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant ADSs which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as
imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a shareholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. 

7. REISSUANCE OF WARRANTS. 

(a) Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company,
whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with section 7(d)), registered as the Holder may request, representing any portion of the then Outstanding Principal Amount being
transferred by the Holder and, if less than the total amount of the applicable Outstanding Principal Amount is being transferred, a new Warrant (in accordance with section 7(d)) to the Holder representing the portion of the Outstanding Principal
Amount not being transferred. 
 (b) Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of
mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with section 7(d)) representing the then Outstanding Principal Amount. 

(c) Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the
principal office of the Company, for a new Warrant or Warrants (in accordance with section 7(d)) representing in the aggregate the then applicable Outstanding Principal Amount, and each such new Warrant will represent the right to purchase such
portion of Outstanding Principal Amount as is designated by the Holder at the time of such surrender. 
 (d) Issuance of New
Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the
then applicable Outstanding Principal Amount (or in the case of a new Warrant being issued pursuant to section 7(a) or section 7(c), such principal amount designated by the Holder which, when added to the principal amount of the other new Warrants
issued in connection with such issuance, does not exceed the then applicable Outstanding Principal Amount), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have
the same rights and conditions as this Warrant. 

  
 7 

 8. NOTICES. Whenever notice is required to be given under this Warrant, unless
otherwise provided herein, such notice shall be given in accordance with the Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a
description of such action and the reason therefore. 
 9. AMENDMENT AND WAIVER. Except as otherwise provided herein, the
provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. 

10. GOVERNING LAW AND DISPUTE RESOLUTION.

(a) This Warrant shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation
and performance of this Warrant shall be governed by, the internal laws of the State of New York without regard to any choice of laws or conflict of laws provisions that would require the application of the laws of any other jurisdiction. 

(b) Any dispute, controversy, difference, proceedings or claim arising out of or relating to this Warrant, including the existence, validity,
interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally resolved by arbitration administered by the Hong Kong International
Arbitration Centre (“HKIAC”) under the Hong Kong International Arbitration Centre Administered Arbitration rules in force when the notice of arbitration is submitted. 

(c) The seat of arbitration shall be Hong Kong. The number of arbitrators shall be three. The arbitration proceedings shall be conducted in
English. 
 (d) The arbitrators shall decide any dispute submitted by the parties to the arbitration strictly in accordance with the
substantive laws of New York and shall not apply any other substantive laws. 
 (e) Each of the Parties shall cooperate with any party to
the dispute in making full disclosure of and providing complete access to all information and documents requested by such party in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on the party
receiving the request. 
 (f) The award of the arbitration tribunal shall be final and binding upon the disputing parties, and any party to
the dispute may apply to a court of competent jurisdiction for enforcement of such award. 
 11. CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not
form part of, or affect the interpretation of, this Warrant. 
 12. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE
RELIEF. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief), and
nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. 

13. TRANSFER. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company. 

14. WARRANT AGENT. The Company shall serve as warrant agent under this Warrant. Upon 30 days’ notice to the Holder,
the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any
corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholder services business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant
agent shall promptly cause notice of its succession as warrant agent to be given to the Holder in accordance with section 8. 

  
 8 

 15. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall
have the following meanings: 
 (a) “ADS” means an American Depositary Share, issued pursuant to the Deposit Agreement or
any applicable restricted American Depositary Share letter agreement, representing one (1) Share as of the date of this Warrant, and deposited with the Depositary or its designee, including an American Depositary Share that is so issued with
restrictive legends. 
 (b) “ADS Delivery Date” shall have the meaning set forth in section 1(a). 

(c) “Affiliate” means, with respect to any Person, any other Person (1) directly or indirectly controlling, controlled by,
or under direct or indirect common control with, such Person; (2) who is a director or officer of such Person or any Subsidiary of such Person or of any Person referred to in clause (1) of this definition; or (3) who is a spouse or any person
cohabiting as a spouse, child or step-child, parent or step-parent, brother, sister, step-brother or step-sister, parent-in-law, grandchild, grandparent, uncle, aunt, nephew and niece of a Person described in clause (1) or (2). For purposes of this
definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 

(d) “Aggregate Exercise Price” shall have the meaning set forth in section 1(d). 

(e) “Applicable Price” shall have the meaning set forth in section 2(b). 

(f) “Bloomberg” means Bloomberg L.P. (or any successor thereto). 

(g) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York,
the People’s Republic of China or Hong Kong are authorized or required by law to remain closed. 
 (h) “Cashless
Exercise” shall have the meaning set forth in section 1(e). 
 (i) “Closing Bid Price” and “Closing Sale
Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an
extended hours basis and does not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00 p.m., New York time, as reported by
Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board
for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such
security as reported in the “OTCPink” marketplace by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the
foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by the Company’s Board of Directors and the Holder. All such
determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period. 

(j) “Company” shall have the meaning set forth in the Preamble. 

(k) “Convertible Note” means the tranche [●] 12.00% Senior Convertible Note issued by the Company to the Holder on the
date hereof. 

  
 9 

 (l) “Convertible Securities” means any shares or other security (other than
Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any Ordinary Shares or ADSs. 

(m) “Corporate Event” shall have the meaning set forth in section 4. 

(n) “Depositary” shall have the meaning set forth in section 1(a). 

(o) “Dilutive Issuance” shall have the meaning set forth in section 2(b). 

(p) “Employee Incentive Plan” means the Company’s incentive plan or plans adopted for its directors, officers,
employees and consultants and approved by the board of the Company. 
 (q) “Exercise Price” shall have the meaning set
forth in section 1(b). 
 (r) “Exercise Notice” shall have the meaning set forth in section 1(a). 

(s) “Expiration Date” means (i) the third anniversary of the Issuance Date or (ii) if the Holder has exercised its option to
extend the maturity date of all or any portion of the Convertible Note in accordance with the terms and conditions thereof, the fifth anniversary of the Issuance Date. 

(t) “Extension Period” means, if as of the third anniversary of the Issuance Date the Holder has exercised its option to
extend the maturity date of all or any portion of the Convertible Note in accordance with the terms and conditions thereof, the period from the third anniversary of the Issuance Date to the fifth anniversary of the Issuance Date. 

(u) “Fundamental Transaction” means any transaction or series of transactions pursuant to which the Company shall, directly
or indirectly, (i) consolidate or merge into any other Person (other than any of its Affiliates), (ii) sell, lease, license, assign, transfer, convey or otherwise dispose of all or more than 50% of the properties or assets of the Company to another
Person (other than any of its Affiliates), (iii) consummate a stock purchase, tender offer, exchange offer or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with
another Person whereby such other Person acquires more than the 50% of the outstanding Ordinary Shares (not including any Ordinary Shares held by the other Person (other than a Subsidiary) or other Persons (other than any of its Affiliates) making
or party to, or associated or affiliated with the other Persons making or party to, such stock purchase or other business combination) or (iv) reorganize, recapitalize or reclassify its Ordinary Shares. 

(v) “HKIAC” shall have the meaning set forth in section 10(b). 

(w) “Holder” shall have the meaning set forth in the Preamble. 

(x) “Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of China. 

(y) “Loan Waiver Notice” means a document evidencing that a portion of the principal amount of the Onshore Loan equal to the
RMB Equivalent of the relevant Aggregate Exercise Price has been waived. 
 (z) “Notional Interest Amount” means an amount
that is equal to interest calculated at a rate of 12% per annum accruing on the Outstanding Principal Amount from time to time from the Issuance Date until the relevant date, provided that no further amount shall accrue after the third anniversary
of the Issuance Date. 
 (aa) “Onshore Loan” means the entrusted loan in the principal amount of the RMB Equivalent of
US$4,950,000 granted pursuant to an entrusted loan agreement entered into by and among China The9 Interactive (Shanghai) Ltd. (

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

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

) and [name of onshore bank]. 

  
 10 

 (bb) “Options” means any rights, warrants or options to subscribe for or
purchase Ordinary Shares, ADSs or Convertible Securities. 
 (cc) “Ordinary Shares” means (i) the Company’s
Ordinary Shares, par value US$0.01 per share, and (ii) any share capital into which such Ordinary Shares shall have been changed or any share capital resulting from a reclassification of such Ordinary Shares. 

(dd) “Outstanding Principal Amount” means the outstanding principal amount of this Warrant applicable from time to time as
calculated in accordance with the terms of this Warrant. The initial Outstanding Principal Amount is $[●], and such amount, as adjusted pursuant to section 1(a), shall be increased by an amount equal to the Notional Interest Amount as of the
third anniversary of the issuance date if and only if as of the third anniversary of the Issuance Date the Holder has exercised its option to extend the maturity date of all or any portion of the Convertible Note in accordance with the terms and
conditions thereof. 
 (ee) “Person” means an individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 
 (ff)
“Principal Market” means The NASDAQ Global Market. 
 (gg) “Purchase Agreement” shall have the meaning
set forth in the Preamble. 
 (hh) “Purchase Rights” shall have the meaning set forth in section 4(a). 

(ii) “RMB” means Renminbi, the legal currency of the People’s Republic of China. 

(jj) “RMB Equivalent” means, in relation to an amount not in RMB, such amount in RMB calculated at the USD to RMB mid-point
daily exchange rate published by the People’s Bank of China on the date of drawdown of the Onshore Loan. 
 (kk) “Securities
Act” means the Securities Act of 1933, as amended. 
 (ll) “Subsidiary” of any Person shall mean any corporation,
partnership, joint venture, limited liability company, trust or other form of legal entity of which (or in which) (a) more than 50% of (i) the issued and outstanding capital stock having ordinary voting power to elect a majority of the board of
directors of such corporation (irrespective of whether at the time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency), (ii) the interest in the capital or profits
of such partnership, joint venture or limited liability company or (iii) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other
Subsidiaries or by one or more of such Person’s other Subsidiaries, or (b) such Person has the power to direct the management or policies, whether through ownership or voting proxy of the voting power of such legal entity, through the power to
appoint a majority of the members of the board of directors or similar governing body of such legal entity, through contractual arrangements or otherwise. 

(mm) “Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity of such Person) formed by,
resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity of such Person) with which such Fundamental Transaction shall have been entered into. 

(nn) “Trading Day” means any day on which the ADSs are traded on the Principal Market, or, if the Principal Market is not
the principal trading market for the ADSs, then on the principal securities exchange or securities market on which the ADSs are then traded; provided that “Trading Day” shall not include any day on which the ADSs are scheduled to trade on
such exchange or market for less than 4.5 hours or any day that the ADSs are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading
on such exchange or market, then during the hour ending at 4:00 p.m., New York time). 

  
 11 

 (oo) “Warrant” shall have the meaning set forth in the Preamble. 

(pp) “Warrant ADSs” shall have the meaning set forth in the Preamble. 

[Signature Page Follows] 

  
 12 

 IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase American
Depositary Shares to be duly executed as of the Issuance Date set out above. 
  

			
	THE9 LIMITED
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 13 

 EXHIBIT A 

EXERCISE NOTICE 
 TO BE
EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS 
 WARRANT TO PURCHASE AMERICAN DEPOSITARY SHARES 

THE9 LIMITED 
 The undersigned holder
hereby exercises the right to purchase                  American Depositary Shares (“Warrant ADSs”) of The9 Limited, an exempted company
incorporated with limited liability and existing under the laws of the Cayman Islands (the “Company”), evidenced by the attached Warrant to American Depositary Shares (the “Warrant”). Capitalized terms used
herein and not otherwise defined shall have the respective meanings set forth in the Warrant. 
 1. Form of Exercise Price. The
Holder’s payment of the Exercise Price shall be made as: 
  

			
	                                	  	a “Cash Exercise” with respect to                      Warrant ADSs.

 2. Payment of Exercise Price. In the event that the Holder conducted a Cash Exercise with respect to some or
all of the Warrant ADSs to be issued pursuant hereto, the Holder shall [pay the Aggregate Exercise Price in the sum of $        ][not be required to pay the Aggregate Exercise Price as the Holder has
delivered a copy of a Loan Waiver Notice] to the Company in accordance with the terms of the Warrant. 
 3. Delivery of Warrant ADSs. The
Company shall deliver to the Holder                      Warrant ADSs in accordance with the terms of the Warrant. 

4. Confirmation. Please send confirmation of receipt of this Exercise Notice to the following facsimile number:
                    . 
 Date:
             ,          
 Name of
Registered Holder 
 By: 
 Name: 

Title: 

 ACKNOWLEDGMENT 

The Company hereby acknowledges this Exercise Notice and hereby directs The Bank of New York Mellon to issue the above indicated number of American Depositary
Shares in accordance with the Depositary Instructions dated             , 20     from the Company and acknowledged and agreed to by The Bank of New York Mellon Trust
Company. 
 THE9 LIMITED 
 By: 

Name: 
 Title:EX-4.1

 Exhibit 4.1 
  

 
 THE ADT CORPORATION, 

as Issuer 
 THE NOTES GUARANTORS
PARTY HERETO 
 AND 
 WELLS
FARGO BANK, NATIONAL ASSOCIATION, 
 as Trustee 

SIXTH SUPPLEMENTAL INDENTURE 

Dated as of April 8, 2016 
 TO
INDENTURE 
 Dated as of July 5, 2012 
  

 

 THIS SIXTH SUPPLEMENTAL INDENTURE is dated as of April 8, 2016, among THE ADT CORPORATION, a
Delaware corporation (the “Company”), the guarantors listed on Schedule I hereto (the “Notes Guarantors”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (the
“Trustee”). 
 RECITALS 

A. The Company and the Trustee executed and delivered an Indenture, dated as of July 5, 2012 (as originally executed, the “Base
Indenture” or, as it may be from time to time supplemented or amended by one or more supplemental indentures supplemental thereto, the “Indenture”), to provide for the issuance by the Company from time to time of
unsubordinated debt securities evidencing its unsecured indebtedness. 
 B. The Company has issued (i) $750,000,000 of 2.250% Notes due 2017
pursuant to the First Supplemental Indenture, dated as of July 5, 2012, (ii) $1,000,000,000 of 3.500% Notes due 2022 (the “2022 Notes”) pursuant to the Second Supplemental Indenture, dated as of July 5, 2012 (the “Second
Supplemental Indenture”), (iii) $750,000,000 of 4.875% Notes due 2042 (the “2042 Notes”) pursuant to the Third Supplemental Indenture, dated as of July 5, 2012 (the “Third Supplemental Indenture”),
(iv) $700,000,000 of 4.125% Senior Notes due 2023 (the “2023 Notes” and, together with the 2022 Notes and the 2042 Notes, the “Secured Notes”) pursuant to the Fourth Supplemental Indenture, dated as of January 14,
2013 (the “Fourth Supplemental Indenture” and, together with the Second Supplemental Indenture and the Third Supplemental Indenture, the “Secured Notes Supplemental Indentures”) and (v) $1,000,000,000 of 6.250%
Senior Notes due 2021 pursuant to the Fifth Supplemental Indenture, dated as of October 1, 2013. 
 C. This Sixth Supplemental
Indenture is being entered into in connection with the proposed Acquisition (as defined below) of the Company by Prime Security Services Borrower, LLC, a Delaware limited liability company (“New Parent”). On February 14, 2016,
the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with, inter alia, New Parent and Prime Security One MS, Inc., a Delaware corporation and a Wholly Owned Subsidiary of New Parent
(“Merger Sub”), pursuant to which Merger Sub will be merged with and into the Company (the “Merger”), with the Company surviving the Merger as a Wholly Owned Subsidiary of New Parent. 

D. The Company desires to enter into this Sixth Supplemental Indenture pursuant to Section 9.01 of the Indenture to (i) provide guarantees to
each series of Secured Notes, (ii) secure the Securities of each series of Secured Notes and (iii) to make certain other changes permitted thereby. 

E. Pursuant to Section 9.02 of the Indenture, the Company and the Trustee may amend the Indenture with the written consent of the Holders of
not less than a majority in aggregate principal amount of the Securities of each series then Outstanding. 
 F. In connection with the
Acquisition, the Company has solicited consents from Holders of the Secured Notes to: (i) waive the requirement for the Company to comply with Section 1.3(3) of each of the Secured Notes Supplemental Indentures in connection with the

  
 Sixth Supplemental
Indenture 

 
Acquisition (the “Waiver”) and (ii) make certain amendments to the Indenture, which are set forth in Article VI of this Sixth Supplemental Indenture (the
“Permitted Holder Amendments”), upon the terms and subject to the conditions set forth in the Consent Solicitation Statement, dated April 1, 2016 (the “Consent Solicitation Statement”). 

G. Pursuant to Section 8.01 of the Base Indenture, the Company fixed 5:00 p.m., New York City time, on March 31, 2016 as the record date (the
“Record Date”) for the purpose of determining the Holders entitled to consent to the Waiver and the Permitted Holder Amendments. 

H. The Holders of a majority in aggregate principal amount of each series of the Secured Notes outstanding as of the Record Date has delivered
and not withdrawn written consents to the Waiver and the Permitted Holder Amendments. 
 I. The entry into this Sixth Supplemental Indenture
by the parties hereto is in all respects authorized by the provisions of the Indenture. 
 NOW, THEREFORE, for and in consideration of the
foregoing premises, the Company, the Notes Guarantors and the Trustee mutually covenant and agree as follows: 
 ARTICLE I 

DEFINITIONS 
  

	 	Section 1.1	Additional Defined Terms. 

 As used herein, the following defined terms shall have the
following meanings: 
 “2021 Notes” has the meaning set forth in the Recitals. 

“2022 Notes” has the meaning set forth in the Recitals. 

“2023 Notes” has the meaning set forth in the Recitals. 

“2042 Notes” has the meaning set forth in the Recitals. 

“Acquisition” means the consummation of the Merger. 

“Acquisition Closing Date” means the date on which the Acquisition is consummated. 

“Additional First Lien Obligations” means all Other First Lien Obligations other than the Secured Notes Obligations. 

“Authorized Representative” means (i) in the case of any First Lien Credit Facility Obligations or the holders of any
First Lien Credit Facility Obligations, the First Lien Collateral Agent, (ii) in the case of the Secured Notes Obligations or the holders of the Secured Note Obligations, the Trustee, and (iii) in the case of any series of Additional First
Lien Obligations or the holders of such series of Additional First Lien Obligations that become subject to the First Lien Intercreditor Agreement, the authorized representative (and successor thereto) named for such series in the applicable joinder
agreement to the First Lien Intercreditor Agreement. 

  
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 “Base Indenture” has the meaning set forth in the Recitals. 

“Collateral” means “Collateral” as defined in the credit agreement under the First Lien Credit Facility. For the
avoidance of doubt, Collateral with respect to each series of Secured Notes does not include Specified Excluded Collateral with respect to such series of Secured Notes. 

“Collateral Agreement” means the Collateral Agreement (First Lien), dated as of July 1, 2015 (as amended, supplemented,
modified, extended, renewed, restated, refunded or refinanced from time to time), among New Parent, each Subsidiary of New Parent from time to time identified therein as a party and the First Lien Collateral Agent. 

“Consent and Acknowledgment” means the Consent and Acknowledgment substantially in the form of Exhibit A-1 to the First
Lien/Second Lien Intercreditor Agreement, dated as of the Acquisition Closing Date, to be executed by the Trustee, as Authorized Representative for the Secured Notes Obligations and the holders of the Secured Notes Obligations, and acknowledged by
New Parent, the First Lien Collateral Agent and the Second Lien Collateral Agent. 
 “Consent Solicitation Statement” has
the meaning set forth in the Recitals. 
 “Credit Facilities” means, collectively, the First Lien Credit Facility and the
Second Lien Credit Facility. 
 “Excluded Subsidiary” means each Subsidiary of New Parent that would qualify as an
“Excluded Subsidiary” (or any similar term) as defined in the Credit Facilities or any other indebtedness of New Parent from time to time. 

“First Lien Collateral Agent” means Barclays Bank PLC, in its capacity as collateral agent for the lenders and other secured
parties under the First Lien Credit Facility, the Secured Notes and the First Lien Security Documents, together with its successors and permitted assigns under the First Lien Security Documents exercising substantially the same rights and powers.

 “First Lien Credit Facility” means the First Lien Credit Agreement, dated as of July 1, 2015, among Prime Security
Services Holdings, LLC, New Parent, the lenders party thereto in their capacities as lenders thereunder and the First Lien Collateral Agent, as amended or restated on the Acquisition Closing Date, including any guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any amendments, supplements, modifications, extensions, renewals, restatements, refundings or refinancings thereof and any indentures or credit facilities or commercial paper
facilities with banks or other institutional lenders or investors that replace, refund or refinance any part of the loans, notes, other credit facilities or commitments thereunder, including any such replacement, refunding or refinancing facility or
indenture that increases the amount borrowable thereunder or alters the maturity thereof. 
 “First Lien Credit Facility
Obligations” means “Obligations” as defined in the First Lien Credit Facility as in effect as of the Acquisition Closing Date (or any comparable term as defined in the First Lien Credit Facility as in effect from time to time).

  
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 “First Lien Intercreditor Agreement” means the intercreditor agreement,
substantially in the form of Exhibit H to the First Lien Credit Facility (as in effect on the Acquisition Closing Date), among the First Lien Collateral Agent, the Trustee and the other parties from time to time party thereto, to be entered into on
the Acquisition Closing Date (as amended, supplemented, modified, extended, renewed, restated, refunded or refinanced from time to time). 

“First Lien Obligations” means, collectively, (a) all First Lien Credit Facility Obligations, (b) all Secured Notes
Obligations and (c) all Other First Lien Obligations. 
 “First Lien Security Documents” means the Security Documents and
any other agreement, document or instrument pursuant to which a lien is granted or purported to be granted securing First Lien Obligations or under which rights or remedies with respect to such liens are governed, in each case to the extent relating
to the collateral securing the First Lien Obligations. 
 “First Lien/Second Lien Intercreditor Agreement” means
(i) the First Lien/Second Lien Intercreditor Agreement, dated as of July 1, 2015, among the First Lien Collateral Agent and Credit Suisse AG, Cayman Islands Branch, as Second Lien Facility Agent and Applicable Second Lien Agent (each, as
defined therein) (as amended, supplemented, modified, extended, renewed, restated, refunded or refinanced from time to time), and (ii) any other First Lien/Second Lien Intercreditor Agreement that is not materially less favorable to the Holders
of the Secured Notes than the First Lien/Second Lien Intercreditor Agreement referred to in clause (i), as determined by the Company in good faith (as amended, supplemented, modified, extended, renewed, restated, refunded or refinanced from time to
time). 
 “First Priority After-Acquired Property” means, with respect to any series of Secured Notes, any property of the
Company or any Notes Guarantor that secures any First Lien Credit Facility Obligations that is not already subject to the lien under the Security Documents, other than Specified Excluded Collateral with respect to such series of Secured Notes. 

“First Priority Liens” means the first priority Liens securing the First Lien Obligations. 

“Foreign Subsidiary” means a Restricted Secured Notes Subsidiary not organized or existing under the laws of the United
States of America or any state or territory thereof or the District of Columbia and any direct or indirect subsidiary of such Restricted Secured Notes Subsidiary. 

“Guaranteed Obligations” has the meaning set forth in Section 2.1 hereof. 

“Indenture” has the meaning set forth in the Recitals. 

“Intercreditor Agreements” means, collectively, the First Lien/Second Lien Intercreditor Agreement and the First Lien
Intercreditor Agreement. 
 “Merger” has the meaning set forth in the Recitals. 

“Merger Agreement” has the meaning set forth in the Recitals. 

  
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 “Merger Sub” has the meaning set forth in the Recitals. 

“New Parent” has the meaning set forth in the Recitals. 

“Notes Guarantors” has the meaning assigned to such term in the introductory paragraph. 

“Obligations” means any principal, interest (including any interest and other monetary obligations accruing subsequent to the
filing of a petition in bankruptcy, reorganization or similar proceeding at the rate provided for in the documentation with respect thereto, whether or not such interest is an allowed claim under applicable state, federal or foreign law), premium,
penalties, fees, indemnifications, reimbursements (including reimbursement obligations with respect to letters of credit and bankers’ acceptances), damages and other liabilities, and guarantees of payment of such principal, interest, penalties,
fees, indemnifications, reimbursements, damages and other liabilities, payable under the documentation governing any indebtedness. 

“Other First Lien Obligations” shall have the meaning given such term by the Collateral Agreement. 

“Other First Lien Secured Party Consent” means the Other First Lien Secured Party Consent substantially in the form of
Exhibit III to the Collateral Agreement, dated as of the Acquisition Closing Date, to be executed by the Trustee, as Authorized Representative for the Secured Notes Obligations and the holders of the Secured Notes Obligations, and acknowledged by
the First Lien Collateral Agent and New Parent. 
 “Permitted Holder Amendments” has the meaning set forth in the Recitals.

 “Record Date” has the meaning set forth in the Recitals. 

“Regulation S-X Excluded Collateral” has the meaning set forth in Section 3.4 hereof. 

“Reporting Entity” has the meaning set forth in Section 5.1 hereof. 

“Restricted Secured Notes Subsidiary” means, with respect to any Person, any Subsidiary of such Person other than an
Unrestricted Subsidiary of such Person. Unless otherwise indicated in this Indenture, all references to Restricted Secured Notes Subsidiaries shall mean Restricted Secured Notes Subsidiaries of the New Parent. 

“Second Lien Collateral Agent” means Credit Suisse AG, Cayman Islands Branch, in its capacity as administrative agent and
collateral agent for the lenders and other secured parties under the Second Lien Credit Facility, together with its successors and permitted assigns. 

“Second Lien Credit Facility” means the credit agreement entered into as of July 1, 2015, by and among the New Parent, the
subsidiary borrowers party thereto (including, upon consummation of the Acquisition, the Company and its subsidiaries), the lenders party thereto in their capacities as lenders thereunder and the Second Lien Collateral Agent, including any
guarantees, collateral documents, instruments and agreements executed in connection therewith, and any amendments, supplements, modifications, extensions, renewals, restatements, refundings 

  
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or refinancings thereof and any indentures or credit facilities or commercial paper facilities with banks or other institutional lenders or investors that replace, refund or refinance any part of
the loans, notes, other credit facilities or commitments thereunder, including any such replacement, refunding or refinancing facility or indenture that increases the amount borrowable thereunder or alters the maturity thereof. 

“Second Priority Senior Secured Notes due 2023” means the $1,890,000,000 of Second Priority Senior Secured Notes due 2023 to
be issued by New Parent and Prime Finance Inc. 
 “Secured Notes” has the meaning set forth in the Recitals. 

“Secured Notes Guarantee” means the guarantee set forth in Article II hereof. 

“Secured Notes Obligations” means Obligations in respect of the Secured Notes, each Secured Notes Guarantee and the Security
Documents. 
 “Secured Notes Supplemental Indenture” has the meaning set forth in the Recitals. 

“Secured Party” means, collectively, the Trustee and the Holders of each series of Secured Notes. 

“Security Documents” means, collectively, the Intercreditor Agreements, the Collateral Agreement, the Other First Lien
Secured Party Consent, other security agreements, pledge agreements and mortgages relating to the Collateral and instruments filed and recorded in appropriate jurisdictions to preserve and protect the liens on the Collateral (including, without
limitation, financing statements under the Uniform Commercial Code of the relevant states) applicable to the Collateral. 

“Specified Excluded Collateral” shall have the meaning given such term by the Collateral Agreement. For the avoidance of
doubt, Specified Excluded Collateral with respect to each series of the Secured Notes includes the Regulation S-X Excluded Collateral and the Capital Stock of the New Parent. 

“Unrestricted Subsidiary” means any Subsidiary of the New Parent that is designated as an “Unrestricted Subsidiary”
(or any comparable term) under any other indebtedness of New Parent or any of its Subsidiaries. 
 “Waiver” has the meaning
set forth in the Recitals. 
 “Wholly Owned Restricted Secured Notes Subsidiary” is any Wholly Owned Subsidiary that is a
Restricted Secured Notes Subsidiary. Unless otherwise indicated in this Indenture, all references to Wholly Owned Restricted Secured Notes Subsidiaries shall mean Wholly Owned Restricted Secured Notes Subsidiaries of the New Parent. 

“Wholly Owned Subsidiary” of any Person means a Subsidiary of such Person 100% of the outstanding Capital Stock or other
ownership interests of which (other than directors’ qualifying shares or shares required to be held by Foreign Subsidiaries) shall at the time be owned by such Person or by one or more Wholly Owned Subsidiaries of such Person. 

  
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 ARTICLE II 

SECURED NOTES GUARANTEE 
  

	 	Section 2.1	Guaranty of Guaranteed Obligations. 

 Subject to Article IV hereof, each Notes
Guarantor guarantees, as of the Acquisition Closing Date, to the Trustee, jointly and severally with the other Notes Guarantors, as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Secured Notes
Obligations (such guarantee obligations of the Notes Guarantors, the “Guaranteed Obligations”) for the benefit of the Secured Parties. Each Notes Guarantor further agrees that the Guaranteed Obligations may be extended or renewed,
in whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Guaranteed Obligation. Each Notes Guarantor waives presentment to, demand of payment
from and protest to the Company of any of the Guaranteed Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment. 
  

	 	Section 2.2	Guaranty of Payment. 

 Each Notes Guarantor further agrees that its guarantee hereunder
constitutes a guarantee of payment when due (whether at stated maturity, by acceleration or otherwise) and not of collection, and waives any right to require that any resort be had by the Trustee or any other Secured Party to any security held for
the payment of the Guaranteed Obligations or to any balance of any deposit account or credit on the books of the Trustee or any other Secured Party in favor of the Company or any other Person. 

 

	 	Section 2.3	No Limitations. 

 Except for termination or release of a Notes Guarantor’s
obligations hereunder as expressly provided for in Section 2.8 and Article IV, the obligations of each Notes Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason,
including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the
Guaranteed Obligations or otherwise (other than defense of payment or performance). Without limiting the generality of the foregoing, the obligations of each Notes Guarantor hereunder, to the fullest extent permitted by applicable law, shall not be
discharged or impaired or otherwise affected by: (i) the failure of the Trustee or any other Secured Party to assert any claim or demand or to exercise or enforce any right or remedy under the provisions of the Indenture or otherwise; (ii) any
rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, the Indenture or any other agreement, including with respect to any other Notes Guarantor under this Secured Notes Guarantee; (iii) the failure
to perfect any security interest in, or the exchange, substitution, release or any impairment of, any security held by the Trustee or any other Secured Party for the Guaranteed Obligations; (iv) any default, failure or delay, willful or otherwise,
in the performance of the Guaranteed Obligations; (v) any other act or omission that may or might in any manner or to any extent vary the risk of any Notes Guarantor or otherwise operate as a discharge of any Notes Guarantor as a matter of law or
equity (other than the payment in full in 

  
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cash in immediately available funds of all the Guaranteed Obligations); (vi) any illegality, lack of validity or enforceability of any Guaranteed Obligation; (vii) any change in the corporate
existence, structure or ownership of the Company, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Company or its assets or any resulting release or discharge of any Guaranteed Obligation (other than the
payment in full in cash in immediately available funds of all the Guaranteed Obligations); (viii) the existence of any claim, set-off or other rights that such Notes Guarantor may have at any time against the Company, the Trustee, or any other
corporation or Person, whether in connection herewith or any unrelated transactions; provided that nothing herein will prevent the assertion of any such claim by separate suit or compulsory counterclaim; and (ix) any other circumstance
(including, without limitation, any statute of limitations) or any existence of or reliance on any representation by the Trustee that might otherwise constitute a defense to, or a legal or equitable discharge of, the Company or any other guarantor
or surety (other than defense of payment or performance). Each Notes Guarantor expressly authorizes the Secured Parties (or the Trustee on behalf of the Secured Parties) to take and hold security for the payment and performance of the
Guaranteed Obligations, to exchange, waive or release any or all such security (with or without consideration), to enforce or apply such security and direct the order and manner of any sale thereof in their sole discretion or to release or
substitute any one or more other guarantors or obligors upon or in respect of the Guaranteed Obligations, all without affecting the obligations of any Notes Guarantor hereunder. To the fullest extent permitted by applicable law, each Notes
Guarantor waives any defense based on or arising out of any defense of any other Notes Guarantor or the unenforceability of the Guaranteed Obligations or any part thereof from any cause, or the cessation from any cause of the liability of any other
Notes Guarantor, other than the payment in full in cash in immediately available funds of all the Guaranteed Obligations. The Trustee and the other Secured Parties may, at their election, foreclose on any security held by one or more of them by
one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Guaranteed Obligations, make any other accommodation with the Company or exercise any other right or
remedy available to them against the Company, without affecting or impairing in any way the liability of any Notes Guarantor hereunder except to the extent the Guaranteed Obligations have been paid in full in cash in immediately available
funds. To the fullest extent permitted by applicable law, each Notes Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of such Notes Guarantor against any other Notes Guarantor, as the case may be, or any security. 
  

	 	Section 2.4	Reinstatement. 

 Notwithstanding the provisions of Section 2.8, each Notes
Guarantor agrees that its Secured Notes Guarantee shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Guaranteed Obligation is rescinded or must otherwise be restored or returned
by the Trustee or any other Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Company or any substantial part of its property, or otherwise, all as though such payment had not been made. 

  
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	 	Section 2.5	Agreement To Pay; Subrogation. 

 In furtherance of the foregoing and not in limitation of
any other right that the Trustee or any other Secured Party has at law or in equity against any Notes Guarantor by virtue hereof, upon the failure of the Company to pay any Guaranteed Obligation when and as the same shall become due, whether at
maturity, by acceleration, after notice of prepayment or otherwise, each Notes Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Trustee for distribution to the applicable Secured Party in cash in immediately available
funds the amount of such unpaid Guaranteed Obligation. Upon payment by any Notes Guarantor of any sums to the First Lien Collateral Agent as provided above, all rights of such Notes Guarantor against the Company arising as a result thereof by
way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subject to Section 7.06 of the Indenture. 
  

	 	Section 2.6	Information. 

 Each Notes Guarantor assumes all responsibility for being and keeping
itself informed of the Company’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks that such Notes Guarantor assumes
and incurs hereunder, and agrees that neither the Trustee nor any other Secured Party will have any duty to advise such Notes Guarantor of information known to it or any of them regarding such circumstances or risks. 

 

	 	Section 2.7	Maximum Liability. 

 Each Notes Guarantor, and by its acceptance of each Secured Notes
Guarantee, the Trustee and each Secured Party hereby confirms that it is the intention of all such Persons that its Secured Notes Guarantee and its Guaranteed Obligations not constitute a fraudulent transfer or conveyance for purposes of the U.S.
Bankruptcy Code or any other federal, state or foreign bankruptcy, insolvency, receivership or similar law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent
applicable to this Secured Notes Guarantee and the Guaranteed Obligations of each Notes Guarantor hereunder. To effectuate the foregoing intention, the First Lien Collateral Agent, the Secured Parties and the Notes Guarantors hereby irrevocably
agree that the Guaranteed Obligations of each Notes Guarantor under this Secured Notes Guarantee at any time shall be limited to the maximum amount as will result in the Guaranteed Obligations of such Notes Guarantor under this Secured Notes
Guarantee not constituting a fraudulent transfer or conveyance. 
  

	 	Section 2.8	Termination and Release. 

 (1) A Notes Guarantor shall automatically be released from its
obligations hereunder in accordance with Article IV hereof. 
 (2) A Secured Notes Guarantee as to any Notes Guarantor shall
terminate and be of no further force or effect and such Notes Guarantor shall be deemed to be released from all obligations under this Article II upon: 

(a) the sale, disposition, exchange or other transfer (including through merger, consolidation, amalgamation or otherwise) of the Capital
Stock (including any sale, disposition or other transfer following which the applicable Notes Guarantor is no longer a Wholly Owned Restricted Secured Notes Subsidiary) of the applicable Notes Guarantor if such sale, disposition, exchange or other
transfer is made in a manner not in violation of the Indenture; 

  
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 (b) such Notes Guarantor becoming an Unrestricted Subsidiary or an Excluded Subsidiary; 

(c) the release or discharge of the guarantee by such Notes Guarantor of the First Lien Credit Facility or other indebtedness (including the
Second Lien Credit Facility) or the guarantee of any other indebtedness which resulted in the obligation to guarantee the Secured Notes; 

(d) the Company’s exercise of its legal defeasance option or covenant defeasance option with respect to an applicable series of Secured
Notes pursuant to the Indenture or the Company’s discharge of its obligations with respect to an applicable series of Secured Notes pursuant to the Indenture; and 

(e) as described under Article IX of the Indenture. 

(3) A Secured Notes Guarantee as to any Subsidiary of New Parent will be automatically released upon the applicable Subsidiary ceasing to be a
Subsidiary of New Parent as a result of any foreclosure of any pledge or security interest securing the Credit Facilities or other exercise of remedies in respect thereof. 

In connection with any termination or release pursuant to this Section 2.8, the Trustee shall execute and deliver to the Company all documents that the
Company shall reasonably request to evidence such termination or release. Any execution and delivery of documents pursuant to this Section 2.8 shall be made without recourse to or warranty by the Trustee. The Company agrees to pay
all reasonable and documented out-of-pocket expenses incurred by the Trustee in connection with the execution and delivery of such documents. 
  

	 	Section 2.9	Additional Notes Guarantors. 

 The Company shall cause each Wholly Owned Restricted
Secured Notes Subsidiary that is not an Excluded Subsidiary and that guarantees or becomes a borrower under the Credit Facilities or that guarantees any other indebtedness of the Company or any of the Notes Guarantors to execute and deliver to the
Trustee (i) a supplemental indenture substantially in the form of Exhibit A hereto pursuant to which such Subsidiary will guarantee payment of the Secured Notes and (ii) joinders to or new Security Documents and take all actions
required by the Security Documents to perfect the liens created thereunder. 

  
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	 	Section 2.10	Form of Guarantee. 

 The form of Secured Notes Guarantee shall be set forth on the
applicable series of Securities substantially as follows: 
 SECURED NOTES GUARANTEE 

For value received, each Notes Guarantor hereby guarantees, jointly and severally with the other Notes Guarantors, as a primary obligor and
not merely as a surety, the due and punctual payment and performance (i) to the holder of this Security the payment of principal of, premium, if any, and interest on, the Security upon which this Secured Notes Guarantee is set forth in the amounts
and at the time when due and payable whether by declaration thereof, or otherwise, and interest on the overdue principal and interest, if any, of such Security, if lawful, to the holder of such Security and the Trustee on behalf of the Holders and
(ii) all amounts owed to the Trustee under the Indenture, in each case in accordance with and subject to the terms and limitations of such Security, the Indenture and Articles II and IV of the Sixth Supplemental Indenture. This
Secured Notes Guarantee (i) will not become effective until the Trustee or Authenticating Agent duly executes the certificate of authentication on this Security and (ii) shall be immediately and automatically released and/or terminated, with no
further effect, if, (a) during the period commencing 60 days prior to the first public notice of the Company’s intention to effect the Merger and ending 60 days after the consummation of the Acquisition, a “Rating Event” is deemed to
occur or (b) within 61 days after the consummation of the Acquisition, (1) a “Change of Control Triggering Event” is deemed to occur or (2) it is publicly announced that the rating of such series of Secured Notes is under consideration for
a possible downgrade by any of the Rating Agencies. This Secured Notes Guarantee shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles thereof. 

 

							
	Dated:	 		 	
			
		 		 	 [NOTES GUARANTORS]

				
		 		 	 By:
	 	  

		 		 		 	 Name:

		 		 		 	 Title:

 ARTICLE III 

COLLATERAL 
  

	 	Section 3.1	Security Documents. 

 Subject to Article IV hereof, the payment of the principal
of and interest and premium, if any, on the Secured Notes when due, whether on an Interest Payment Date, at maturity, by acceleration, repurchase, redemption or otherwise and whether by the Company pursuant to the Secured Notes or by the Notes
Guarantors pursuant to the Secured Notes Guarantees, the payment of all other Secured Notes Obligations and the performance of all other obligations of the Company and the Notes Guarantors under each series of Secured Notes, the Secured Notes
Guarantees and the Security Documents shall be secured, as of the Acquisition Closing Date, as 

  
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provided in the Security Documents, subject to the Intercreditor Agreements. The Company and each Notes Guarantor shall make all filings (including filings of continuation statements and
amendments to UCC financing statements that may be necessary to continue the effectiveness of such UCC financing statements) and all other actions as are required by the Security Documents to maintain (at the sole cost and expense of the Company and
the Notes Guarantors) the security interest created by the Security Documents in the Collateral (other than with respect to any Collateral the security interest in which is not required to be perfected under the Security Documents) as a perfected
security interest. 
  

	 	Section 3.2	First Lien Collateral Agent. 

 (1) The First Lien Collateral Agent shall have all the
rights and protections provided in the Security Documents and the First Lien Credit Facility. 
 (2) Subject to the provisions of Section
7.01 of the Indenture, neither the Trustee nor the First Lien Collateral Agent nor any of their respective officers, directors, employees, attorneys or agents will be responsible or liable for the existence, genuineness, value or protection of any
Collateral, for the legality, enforceability, effectiveness or sufficiency of the Security Documents, for the obtaining or maintaining of insurance on any Collateral, for the creation, perfection, priority, sufficiency or protection of any First
Priority Lien, or for any defect or deficiency as to any such matters. Beyond the exercise of reasonable care in the custody thereof, neither the Trustee nor the First Lien Collateral Agent shall have any duty as to any Collateral in its possession
or control or in the possession or control of any agent or bailee or any income thereon or as to preservation of rights against prior parties or any other rights pertaining thereto and neither the Trustee nor the First Lien Collateral Agent shall be
responsible for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or maintaining the perfection of any security interest in the Collateral. The
Trustee and the First Lien Collateral Agent shall be deemed to have exercised reasonable care in the custody of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which it accords its own property
and shall not be liable or responsible for any loss or diminution in the value of any of the Collateral, by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Trustee or the First Lien Collateral
Agent in good faith. 
 (3) Subject to the Security Documents and the Intercreditor Agreements, (i) the Trustee shall direct the First Lien
Collateral Agent and (ii) except as directed by the Trustee as required or permitted by the Indenture and any other representatives or pursuant to the Security Documents, in each case, subject to the Intercreditor Agreements, the Holders acknowledge
that the First Lien Collateral Agent will not be obligated: 
 (a) to act upon directions purported to be delivered to it by any other
Person; 
 (b) to foreclose upon or otherwise enforce any First Priority Lien; or 

(c) to take any other action whatsoever with regard to any or all of the First Priority Liens, Security Documents or Collateral. 

  
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 (4) The Holders agree that the First Lien Collateral Agent shall be entitled to the rights,
privileges, protections, immunities, indemnities and benefits provided to the First Lien Collateral Agent by the Security Documents and the First Lien Credit Facility. Furthermore, each Holder consents to the terms of and authorizes and directs the
Trustee (in each of its capacities) and the First Lien Collateral Agent to enter into and perform the Intercreditor Agreements and Security Documents in each of its capacities thereunder. 

(5) If the Company (i) incurs First Lien Obligations at any time when the First Lien Intercreditor Agreement is not in effect or at any time
when indebtedness constituting First Lien Obligations entitled to the benefit of an existing intercreditor agreement is concurrently retired and (ii) directs the Trustee to deliver to the First Lien Collateral Agent an Officer’s Certificate so
stating and requesting the First Lien Collateral Agent to enter into an intercreditor agreement (on substantially the same terms as the First Lien Intercreditor Agreement) in favor of a designated agent or representative for the holders of the First
Lien Obligations so incurred, the Holders acknowledge that the First Lien Collateral Agent is hereby authorized and directed to enter into such intercreditor agreement, bind the Holders on the terms set forth therein and perform and observe its
obligations thereunder. 
  

	 	Section 3.3	Actions to Be Taken. 

 (1) The Trustee is authorized and directed to execute and deliver
on the Acquisition Closing Date, and authorized and empowered to bind the Holders of the Secured Notes under, the following documents to which it is a party and, subject to the Intercreditor Agreements, to perform its obligations and exercise its
rights and powers thereunder: 
 (a) the Other First Lien Secured Party Consent; 

(b) the First Lien Intercreditor Agreement; and 

(c) the Consent and Acknowledgment. 

(2) Subject to the Intercreditor Agreements, the Trustee is authorized and empowered to receive for the benefit of the Holders any funds
collected or distributed under the Security Documents to which the Trustee is a party and to make further distributions of such funds to the Holders according to Section 6.03 of the Indenture. 

(3) Subject to the provisions of Sections 7.01 and 7.02 of the Indenture, the Intercreditor Agreements and the Security Documents, the Trustee
may, in its sole discretion and without the consent of the Holders, direct, on behalf of the Holders, the First Lien Collateral Agent to take all actions it deems necessary or appropriate in order to: 

(a) foreclose upon or otherwise enforce any or all of the First Priority Liens; 

(b) enforce any of the terms of the Security Documents to which the First Lien Collateral Agent or Trustee is a party; or 

(c) collect and receive payment of any and all Obligations. 

  
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 Subject to the Intercreditor Agreements, the Trustee is authorized and empowered to institute and maintain, or
direct the First Lien Collateral Agent to institute and maintain, such suits and proceedings as it may deem expedient to protect or enforce the First Priority Liens or the Security Documents to which the First Lien Collateral Agent or Trustee is a
party or to prevent any impairment of Collateral by any acts that may be unlawful or in violation of the Security Documents to which the First Lien Collateral Agent or Trustee is a party or this Sixth Supplemental Indenture, and such suits and
proceedings as the Trustee or First Lien Collateral Agent may deem expedient to preserve or protect its interests and the interests of the Holders in the Collateral, including power to institute and maintain suits or proceedings to restrain the
enforcement of or compliance with any legislative or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid if the enforcement of, or compliance with, such enactment, rule or order would impair the security
interest hereunder or be prejudicial to the interests of Holders, the Trustee or the First Lien Collateral Agent. 
  

	 	Section 3.4	Release of Collateral. 

 (1) Subject to the terms of the applicable Secured Notes
Supplemental Indenture, Collateral may be released from the lien and security interest created by the Security Documents to secure the Secured Notes Obligations at any time or from time to time in accordance with the provisions of the First Lien
Intercreditor Agreement or as provided hereby or in the Security Documents. The applicable assets included in the Collateral shall be automatically released from the liens securing each series of Secured Notes, and the applicable Notes Guarantor
shall be automatically released from its obligations under this Sixth Supplemental Indenture and the Security Documents, under any one or more of the following circumstances: 

(a) in respect of the property and assets of a Notes Guarantor, upon the consummation of any transaction permitted by the Indenture as a
result of which such Notes Guarantor ceases to be a Subsidiary of New Parent or otherwise ceases to be a Pledgor (as defined in the Collateral Agreement), and such Notes Guarantor shall be automatically released from its obligations hereunder and
under the Security Documents, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to such Notes Guarantor; 

(b) upon any sale or other transfer by the Company or any Notes Guarantor of any Collateral that is permitted under the Indenture to any
Person that is not the Company or a Notes Guarantor (including in connection with a condemnation or casualty event), or upon the effectiveness of any written consent to the release of the security interest granted by the Collateral Agreement in any
Collateral pursuant to the Indenture, the security interest in such Collateral securing the Secured Notes shall be automatically released, all without delivery of any instrument or performance of any act by any party; 

(c) to enable the Company or any Notes Guarantor to consummate the disposition (other than any disposition to the Company or another Notes
Guarantor) of such property or assets and to enable any release described in Section 5.15 of the Collateral Agreement; 

  
 Sixth Supplemental
Indenture 

  
 14 

 (d) in respect of the property and assets of a Notes Guarantor, upon such Notes Guarantor
becoming an Unrestricted Subsidiary or an Excluded Subsidiary, and such Notes Guarantor shall be automatically released from its obligations hereunder and under the Security Documents; 

(e) in respect of the property and assets of a Notes Guarantor, upon the release or discharge of the pledge granted by such Notes Guarantor
to secure the First Lien Credit Facility Obligations or any other indebtedness or the guarantee of any other indebtedness which resulted in the obligation to become a Notes Guarantor with respect to the Secured Notes; 

(f) as described under Article IX of the Indenture; and 

(g) in accordance with Article IV hereof. 

In addition, the security interests granted pursuant to the Security Documents securing the Secured Notes Obligations with respect to each
series of Secured Notes shall automatically terminate and/or be released all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the applicable Pledgors as of the date upon (i)
all Obligations under such series of Secured Notes and the Indenture (other than contingent or unliquidated obligations or liabilities not then due) have been paid in full in cash or immediately available funds or (ii) a legal defeasance or covenant
defeasance or discharge under Article XI of the Indenture. 
 (2) Notwithstanding anything herein to the contrary, at any time when an Event
of Default has occurred and is continuing and the maturity of any series of Secured Notes has been accelerated (whether by declaration or otherwise) and the Trustee has delivered a notice of acceleration to the First Lien Collateral Agent, no
release of Collateral pursuant to the provisions of this Sixth Supplemental Indenture or the Security Documents will be effective as against the Holders of such series of Secured Notes, except as otherwise provided in the First Lien Intercreditor
Agreement. 
 (3) To the extent necessary and for so long as required for any Subsidiary of the New Parent not to be subject to any
requirement pursuant to Rule 3-16 of Regulation S-X under the Securities Act to file separate financial statements with the SEC (or any other governmental agency), the Capital Stock of such Subsidiary of the New Parent (the “Regulation S-X
Excluded Collateral”) shall not be included in the Collateral with respect to the respective Secured Notes so affected and shall not be subject to the liens securing such Secured Notes and the Secured Notes Obligations in accordance with
and only to the extent provided in the Security Documents. 
  

	 	Section 3.5	Powers Exercisable by Receiver or Trustee.  

 In case the Collateral shall be in the
possession of a receiver or trustee, lawfully appointed, the powers conferred in this Article III upon the Company or the Notes Guarantors with respect to the release, sale or other disposition of such property may be exercised by such
receiver or trustee, and an instrument signed by such receiver or trustee shall be deemed the equivalent of any similar instrument of the Company or any Notes Guarantor or of any officer or 

  
 Sixth Supplemental
Indenture 

  
 15 

 
officers thereof required by the provisions of this Article III; and if the Trustee or the First Lien Collateral Agent shall be in the possession of the Collateral under any provision of
this Sixth Supplemental Indenture, then such powers may be exercised by the Trustee or the First Lien Collateral Agent, as the case may be. 
  

	 	Section 3.6	Release upon Termination of the Company’s Obligations. 

 In the event that (i) the
Company delivers to the Trustee, in form and substance acceptable to it, an Officer’s Certificate and Opinion of Counsel certifying that all the Obligations under any series of Secured Notes have been satisfied and discharged by the payment in
full of the Company’s obligations under such series of Secured Notes, and all such Obligations have been so satisfied, or (ii) a discharge, legal defeasance or covenant defeasance occurs under Article XI of the Indenture with respect to any
series of Secured Notes, the Trustee shall deliver to the Company and the First Lien Collateral Agent a notice stating that the Trustee, on behalf of the Holders of the relevant series of Secured Notes, disclaims and gives up any and all rights it
has in or to the Collateral with respect to such series of Secured Notes, and any rights it has under such series of Secured Notes, and upon receipt by the First Lien Collateral Agent of such notice, the First Lien Collateral Agent shall be deemed
not to hold a lien in the Collateral with respect to such series of Secured Notes on behalf of the Trustee and shall (or shall direct the First Lien Collateral Agent to) do or cause to be done all acts reasonably necessary to release such lien, with
respect to such series of Secured Notes, as soon as is reasonably practicable. 
  

	 	Section 3.7	General Authority of the First Lien Collateral Agent. 

 (1) By acceptance of the benefits
of this Sixth Supplemental Indenture and the Security Documents, each Secured Party (whether or not a signatory hereto) shall be deemed irrevocably (i) to consent to the appointment of the First Lien Collateral Agent as its agent under the Security
Documents, (ii) to confirm that the First Lien Collateral Agent shall have the authority to act as the exclusive agent of such Secured Party for the enforcement of any provision of any Security Document against any Pledgor, the exercise of remedies
thereunder and the giving or withholding of any consent or approval thereunder relating to any Collateral or any Pledgor’s obligations with respect thereto, (iii) to agree that it shall not take any action to enforce any provisions of any
Security Document against any Pledgor, to exercise any remedy thereunder or to give any consents or approvals thereunder except as expressly provided in this Sixth Supplemental Indenture or any Security Document and (iv) to agree to be bound by the
terms of this Sixth Supplemental Indenture and the Security Documents and the Intercreditor Agreements. 
 (2) As between the First Lien
Collateral Agent and the Pledgors, the First Lien Collateral Agent shall be conclusively presumed to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and no Pledgor shall be under any
obligation, or entitlement, to make any inquiry respecting such authority. 

  
 Sixth Supplemental
Indenture 

  
 16 

	 	Section 3.8	Further Assurances 

 Upon the acquisition by the Company or any Secured Notes Guarantor
of any First Priority After-Acquired Property, the Company or such Secured Notes Guarantor shall execute and deliver such mortgages, deeds of trust, deeds to secure debt, security instruments, financing statements and certificates or such other
documentation substantially similar to the documentation delivered to secure First Lien Credit Facility Obligations, if any, as shall be reasonably necessary to vest in the First Lien Collateral Agent, for the benefit of the Holders of each series
of Secured Notes, a perfected security interest or lien in such First Priority After-Acquired Property and to have such First Priority After-Acquired Property (but subject to certain limitations, if applicable, including as described in the Security
Documents and Articles III and IV hereof) added to the Collateral, and thereupon all provisions of this Indenture relating to the Collateral shall be deemed to relate to such First Priority After-Acquired Property to the same
extent and with the same force and effect. 
 ARTICLE IV 
  

	 	Section 4.1	Automatic Termination of Guarantees and Collateral. 

 Except to the extent that a Waiver
is obtained with respect to a series of Secured Notes, each of (i) the Secured Notes Guarantee contemplated by Article II hereof, (ii) the security interests contemplated by Article III hereof (except such portion of such security
interests with respect to a Principal Property (as defined under the applicable Secured Notes Supplemental Indenture) or any shares of stock of or indebtedness issued by any Restricted Secured Notes Subsidiary as required to be maintained pursuant
to the applicable Secured Notes Supplemental Indenture), (iii) the reporting covenant contemplated by Article V hereof and (iv) Section 3.8 hereof, shall be immediately and automatically released and/or terminated, with no further
effect, with respect to such series of Secured Notes if, (a) during the period commencing 60 days prior to the first public notice of the Company’s intention to effect the Merger and ending 60 days after the consummation of the Acquisition, a
Rating Event (as defined under the applicable Secured Notes Supplemental Indenture) occurs or (b) within 61 days after the consummation of the Acquisition, (1) a Change of Control Triggering Event (as defined under the applicable Secured Notes
Supplemental Indenture) occurs or (2) it is publicly announced that the rating of such series of Secured Notes is under consideration for a possible downgrade by any of the Rating Agencies (as defined under the applicable Secured Notes Supplemental
Indenture). Following any such release with respect to any series of Secured Notes, all property and assets of the Company and each Notes Guarantor not required to be pledged for the benefit of such series of Secured Notes pursuant to the
applicable Secured Notes Supplemental Indenture shall constitute “Specified Excluded Collateral” with respect to such series of Secured Notes. 

ARTICLE V 
 REPORTING
COVENANT 
  

	 	Section 5.1	Reports. 

 (a) Subject to Article IV hereof, so long as any Secured Notes of a
series are outstanding, the Company will provide to the Trustee and, upon request, to beneficial owners of such Secured Notes a copy of all of the information and reports referred to below: 

(i) within 15 days after the time period specified in the SEC’s rules and regulations for non-accelerated filers, annual reports of
the Reporting Entity (as defined below) for such fiscal year containing the information that would have been required to be contained in an annual report on Form 10-K (or any successor or comparable form) if the Reporting Entity had been a
reporting company under the Exchange Act, except to the extent permitted to be excluded by the SEC; 

  
 Sixth Supplemental
Indenture 

  
 17 

 (ii) within 15 days after the time period specified in the SEC’s rules and regulations
for non-accelerated filers, quarterly reports of the Reporting Entity for such fiscal quarter containing the information that would have been required to be contained in a quarterly report on Form 10-Q (or any successor or comparable form) if
the Reporting Entity had been a reporting company under the Exchange Act, except to the extent permitted to be excluded by the SEC; and 

(iii) within 15 days after the time period specified in the SEC’s rules and regulations for filing current reports on
Form 8-K, current reports containing substantially all of the information that would be required to be filed in a Current Report on Form 8-K under the Exchange Act on the operative date of the Sixth Supplemental Indenture pursuant to
Sections 1, 2 and 4, Items 5.01, 5.02(a)–(d) (other than compensation information), 5.03(b) and Item 9.01 (only to the extent relating to any of the foregoing) of Form 8-K if the Reporting Entity had been a reporting company
under the Exchange Act; provided, however, that no such current reports will be required to be furnished if the Company or any direct or indirect parent of the Company determines in its good faith judgment that such event is not
material to Holders or the business, assets, operations, financial position or prospects of the Company and its Affiliates, taken as a whole. 

If at any time the Company or any direct or indirect parent of the Company has made a good faith determination to file a registration
statement with the SEC with respect to an initial public offering of such Person’s Capital Stock, the Company will not be required to disclose any information or take any actions that, in the good faith view of the Company, would violate the
securities laws or the SEC’s “gun jumping” rules or otherwise have an adverse effect on such initial public offering. 

Notwithstanding the foregoing, (1) the Company (and the applicable Reporting Entity) will not be required to furnish any information,
certificates or reports that would otherwise be required by (A) Section 302 or Section 404 of the Sarbanes-Oxley Act of 2002, or related Items 307 or 308 of Regulation S-K, or (B) Item 10(e) of Regulation S-K
promulgated by the SEC with respect to any non-generally accepted accounting principles financial measures contained therein, (2) such reports will not be required to contain financial information required by Rule 3-09, Rule 3-10 or
Rule 3-16 of Regulation S-X or include any exhibits or certifications required by Form 10-K or Form 10-Q (or any such successor or comparable forms) or related rules under Regulation S-K, and
(3) such reports shall be subject to exceptions and exclusions consistent with the presentation of financial and other information in the preliminary offering memorandum for the Second Priority Senior Secured Notes due 2023 and shall not be
required to present compensation or beneficial ownership information. 

  
 Sixth Supplemental
Indenture 

  
 18 

 The financial statements, information and other documents required to be provided as described
above, may be those of (1) the Company or (2) any direct or indirect parent of the Company (any such entity described in clause (1) or (2), a “Reporting Entity”), so long as, in the case of (2), either (A) such direct
or indirect parent of the Company will not conduct, transact or otherwise engage, or commit to conduct, transact or otherwise engage, in any business or operations other than its direct or indirect ownership of all of the equity interests in, and
its management of the Company or (B) such direct or indirect parent of the Company is or becomes a guarantor of the applicable series of Secured Notes; provided that, if the financial information so furnished relates to such direct or
indirect parent of the Company pursuant to (2)(A) above, the same is accompanied by a reasonably detailed description of the quantitative differences between the information relating to such parent, on the one hand, and the information relating to
the Company and the guarantors of the Secured Notes on a standalone but consolidated basis, on the other hand. 
 In addition to providing
such information to the Trustee, the Company will make available to the Holders, prospective investors and securities analysts the information required to be provided pursuant to clauses (i), (ii) or (iii) of this Section, by posting
such information to the website of the Company (or the website of any direct or indirect parent of the Company) or on IntraLinks or any comparable online data system or website. 

(b) The Reporting Entity will also hold quarterly conference calls, beginning with the first full fiscal quarter ending after the operative
date of the Sixth Supplemental Indenture, for all Holders and securities analysts to discuss such financial information no later than 10 business days after the distribution of such information required by clauses (a)(i) and (a)(ii) of this Section
5.1, and prior to the date of each such conference call, the Reporting Entity will announce the time and date of such conference call and either include all information necessary to access the call in such announcement or inform Holders of each
series of Secured Notes, prospective investors and securities analysts how they can obtain such information, including, without limitation, the applicable password or other login information (if applicable). 

(c) Notwithstanding the foregoing, the Company will be deemed to have furnished such reports referred to above to the Trustee and Holders if
the Company or a Reporting Entity has filed such reports with the SEC via the EDGAR filing system (or any successor system) and such reports are publicly available. In addition, the requirements of this covenant shall be deemed satisfied by the
posting of reports that would be required to be provided to the Holders on the Company’s website (or the website of any direct or indirect parent of the Company). Furthermore, (1) the time requirements set forth in clause (ii) of the
first paragraph of this covenant shall be satisfied if the quarterly reports for the fiscal quarters ending March 31, 2016, June 30, 2016 and September 30, 2016 are filed within 75 days after the end of such fiscal quarter and (2) the time
requirements set forth in clause (i) of the first paragraph of this covenant shall be satisfied if the annual report for the fiscal year ending December 31, 2016 is filed within 120 days after the end of such fiscal year. 

  
 Sixth Supplemental
Indenture 

  
 19 

 ARTICLE VI 

PERMITTED HOLDER AMENDMENTS 
  

	 	Section 6.1	Amendments. 

 Each Secured Notes Supplemental Indenture is hereby amended as follows:

 (a) [Reserved.] 
 (b) The
following definition of “Management Group” is hereby added to Section 1.2 of each Secured Notes Supplemental Indenture: 

“Management Group” means the group consisting of the directors, executive officers and other management
personnel of the Company or any direct or indirect parent of the Company, as the case may be, on the Merger Closing Date together with (1) any new directors whose election by such boards of directors or whose nomination for election by the
shareholders of the Company or any direct or indirect parent of the Company, as applicable, was approved by a vote of a majority of the directors of the Company or any direct or indirect parent of the Company, as applicable, then still in office who
were either directors on the Merger Closing Date or whose election or nomination was previously so approved and (2) executive officers and other management personnel of the Company or any direct or indirect parent of the Company, as applicable,
hired at a time when the directors on the Merger Closing Date together with the directors so approved constituted a majority of the directors of the Company or any direct or indirect parent of the Company, as applicable. 

(c) The following definition of “Merger Closing Date” is hereby added to Section 1.2 of each Secured Notes Supplemental Indenture:

 “Merger Closing Date” means the closing date under the Agreement and Plan of Merger, by and among the
Company, Parent, Prime Security One MS, Inc., a Delaware corporation and a Wholly Owned Subsidiary of Parent (“Merger Sub”), and solely for the purposes of Article IX thereof, Prime Security Services Parent, Inc., a Delaware
corporation and Prime Security Services TopCo Parent, L.P., a Delaware limited partnership, pursuant to which Merger Sub merged with and into the Company (the “Merger”) with the Company surviving the Merger as a Wholly Owned
Subsidiary of Parent. 
 (d) The following definition of “Parent” is hereby added to Section 1.2 of each Secured Notes
Supplemental Indenture: 
 “Parent” means Prime Security Services Borrower, LLC, a Delaware limited
liability company. 
 (e) The following definition of “Permitted Holders” is hereby added to Section 1.2 of each Secured Notes
Supplemental Indenture: 
 “Permitted Holders” means, at any time, each of (i) the Sponsors,
(ii) the Management Group, (iii) any Person that has no material assets other than the Capital Stock of the Company, any direct or indirect parent of the Company and other Permitted Holders and, directly or indirectly, holds or acquires
100% of the total voting power of 

  
 Sixth Supplemental
Indenture 

  
 20 

 
the Voting Stock of the Company, and of which no other Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision),
other than any of the other Permitted Holders, holds more than 50% of the total voting power of the Voting Stock thereof and (iv) any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any
successor provision) the members of which include any of the Permitted Holders specified in clauses (i), (ii) and (iii) above and that, directly or indirectly, hold or acquire beneficial ownership of the Voting Stock of the Company (a
“Permitted Holder Group”), so long as (1) each member of the Permitted Holder Group has voting rights proportional to the percentage of ownership interests held or acquired by such member (or more favorable voting rights, in
the case of any Permitted Holder) and (2) no Person or other “group” (other than Permitted Holders specified in clauses (i), (ii) and (iii) above) beneficially owns more than 50% on a fully diluted basis of the Voting Stock
held by the Permitted Holder Group. Any Person or group whose acquisition of beneficial ownership constitutes a Change of Control in respect of which a Change of Control Offer (as defined under the applicable Secured Notes Supplemental Indenture) is
made in accordance with the requirements of the Indenture will thereafter, together with its Affiliates, constitute an additional Permitted Holder. 

(f) The following definition of “Sponsors” is hereby added to Section 1.2 of each Secured Notes Supplemental Indenture: 

“Sponsors” means (i) one or more investment funds affiliated with Apollo Global Management, LLC and any
of their respective Affiliates, including Parent and each of its Affiliates and Subsidiaries but excluding other portfolio companies (collectively, the “Apollo Sponsors”), and (ii) any Person that forms a group (within the
meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision) with the Apollo Sponsors; provided that any Apollo Sponsor (x) owns a majority of the voting power and (y) controls a
majority of the Board of Directors of the Company. 
 (g) The definition of “Change of Control” in Section 1.2 of each Secured
Notes Supplemental Indenture is hereby amended and restated in its entirety to read as follows: 
 “Change of
Control” means the occurrence of either of the following: (1) the sale, lease or transfer, in one or a series of related transactions, of all or substantially all the assets of the Company and its Subsidiaries, taken as a whole, to a Person
other than any of the Permitted Holders; or (2) the Company becomes aware (by way of a report or any other filing pursuant to Section 13(d) of the Exchange Act, proxy, vote, written notice or otherwise) of the acquisition by any Person or group
(within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision), including any group acting for the purpose of acquiring, holding or disposing of securities (within the meaning of Rule
13d-5(b)(1) under the Exchange Act), other than any of the Permitted Holders, in a single transaction or in a related series of transactions, by way of merger, consolidation, amalgamation or other business combination or purchase of beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision), of more than 50% of the total voting power of the Voting Stock of the Company. 

  
 Sixth Supplemental
Indenture 

  
 21 

 (h) Any definitions used exclusively in the provisions of the Indenture, the Secured Notes
Supplemental Indentures, or the Secured Notes that are deleted pursuant to this Article VI, and any definitions used exclusively within such definitions, are hereby deleted in their entirety from the Indenture, the applicable Secured Notes
Supplemental Indentures and the Secured Notes, and all references in the Indenture, the applicable Secured Notes Supplemental Indentures and the Secured Notes to paragraphs, Sections, Articles or other terms or provisions of the Indenture or the
applicable Secured Notes Supplemental Indentures deleted pursuant to this Article VI(h) or that have been otherwise deleted pursuant to this Sixth Supplemental Indenture are hereby deleted in their entirety. 

ARTICLE VII 
 WAIVER

  

	 	Section 7.1	Waiver. 

 The Trustee has received validly delivered and unrevoked consents from Holders
of at least a majority in aggregate principal amount of each series of Secured Notes outstanding as of the Record Date to the Waiver, which waives the requirement for the Company to comply with Section 1.3(3) of each of the Secured Notes
Supplemental Indentures in connection with the Acquisition. 
  

	 	Section 7.2	Effect of Waiver. 

 Upon Section 7.1 above and the Waiver becoming operative, the
Company shall no longer be required to comply with the requirements and obligations pursuant to Section 1.3(3) of each of the Secured Notes Supplemental Indentures in connection with the Acquisition, including, but not limited to, the requirement
for the Company to make a Change of Control Offer (as defined under the applicable Secured Notes Supplemental Indenture) in connection with the Acquisition, and each Holder and every subsequent Holder of each series of Secured Notes shall be bound
by the Waiver, even if notation of the Waiver is not made on the Secured Notes. 
 ARTICLE VIII 

MISCELLANEOUS 
  

	 	Section 8.1	Effect of Sixth Supplemental Indenture. 

 This Sixth Supplemental Indenture shall become
effective upon its execution by the parties hereto. Notwithstanding the foregoing, Articles I, II, III, IV, V, VI and VII of this Sixth Supplemental Indenture shall not become operative, and
shall have no force and effect, until (i) the Acquisition Closing Date and (ii) in the case of the amendments set forth in Section 3.4(3), Article V, Article VI and the Waiver set forth in Article VII, such later time and
date at which the Company notifies the Trustee that it has delivered to D.F. King & Co., Inc. in its 

  
 Sixth Supplemental
Indenture 

  
 22 

 
capacity as paying agent for the Consent Payment (as defined in the Consent Solicitation Statement), on behalf of Holders, the aggregate Consent Payment to be paid to Holders, upon the terms and
subject to the conditions in the Consent Solicitation Statement, in respect of the written consents validly delivered in respect of the Waiver and the Permitted Holder Amendments. 

 

	 	Section 8.2	Definitions. 

 Capitalized terms used but not defined in this Sixth Supplemental
Indenture shall have the meanings ascribed thereto in the Indenture or the applicable Secured Notes Supplemental Indenture. 
  

	 	Section 8.3	Confirmation of Indenture. 

 The Indenture, as supplemented and amended by this Sixth
Supplemental Indenture, is in all respects ratified and confirmed, and the Indenture, this Sixth Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument. 

 

	 	Section 8.4	Concerning the Trustee. 

 In carrying out the Trustee’s responsibilities hereunder,
the Trustee shall have all of the rights, protections and immunities which it possesses under the Indenture. The recitals contained herein, except the Trustee’s certificate of authentication, shall be taken as the statements of the Company, and
the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to (i) the validity or sufficiency of this Sixth Supplemental Indenture, (ii) the proper authorization hereof by the Company by action or
otherwise, (iii) the due execution hereof by the Company or (iv) the consequences of any amendment herein provided for. 
  

	 	Section 8.5	Governing Law. 

 This Sixth Supplemental Indenture shall be deemed to be a contract made
under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State without regard to conflicts of law principles that would require the application of any other law.

 

	 	Section 8.6	Separability. 

 In case any one or more of the provisions contained in this Sixth
Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Sixth Supplemental Indenture, but this Sixth
Supplemental Indenture shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein. 

  
 Sixth Supplemental
Indenture 

  
 23 

	 	Section 8.7	Counterparts. 

 This Sixth Supplemental Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Sixth Supplemental Indenture and of signature pages by facsimile or PDF
transmission shall constitute effective execution and delivery of this Sixth Supplemental Indenture as to the parties hereto and may be used in lieu of the original Sixth Supplemental Indenture for all purposes. Signatures of the parties hereto
transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 
  

	 	Section 8.8	No Benefit. 

 Nothing in this Sixth Supplemental Indenture, express or implied, shall
give to any Person other than the parties hereto and their successors or assigns and the Holders of Secured Notes from time to time, any benefit or legal or equitable rights, remedy or claim under this Sixth Supplemental Indenture or the Indenture.

  

	 	Section 8.9	Amendments and Supplemental Indentures. 

 This Sixth Supplemental Indenture is subject to
the provisions regarding supplemental indentures and amendments set forth in Article IX of the Indenture. 
  

	 	Section 8.10	Legal, Valid and Binding Obligation. 

 The Company and each Notes Guarantor hereby
represents and warrants that, assuming the due authorization, execution and delivery of this Sixth Supplemental Indenture by the Trustee, this Sixth Supplemental Indenture is its legal, valid and binding obligation enforceable against it in
accordance with its terms. 
 [Signature Page Follows] 

  
 Sixth Supplemental
Indenture 

  
 24 

 IN WITNESS WHEREOF, the parties hereto have caused this Sixth Supplemental Indenture to be duly
executed all as of the day and year first above written. 
  

			
	 Issuer:

	
	 THE ADT CORPORATION

		
	 By:
	 	 /s/ Michael S. Geltzeiler

		 	 Name: Michael S. Geltzeiler

		 	 Title: Senior Vice President & Chief Financial Officer

	
	 Trustee:

	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	 By:
	 	 /s/ Stefan Victory

		 	 Name: Stefan Victory

		 	 Title: Vice President

	
	 Notes Guarantors:

	
	PRIME SECURITY SERVICES BORROWER, LLC
		
	 By:
	 	 /s/ Timothy J. Whall

		 	 Name: Timothy J. Whall

		 	 Title: President and Chief Executive Officer

	
	 ASG INTERMEDIATE HOLDING CORP.

		
	 By:
	 	 /s/ Timothy J. Whall

		 	 Name: Timothy J. Whall

		 	 Title: President and Chief Executive Officer

  

  
 [Signature Page to
Sixth Supplemental Indenture] 

 
			
	 ASG HOLDINGS LLC

		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	 ALARM SECURITY GROUP LLC

		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	 ABC SECURITY CORPORATION

		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	 BRINKMAN SECURITY, INC.

		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	 ASG GOVERNMENT SERVICES LLC

		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	 NOLAN’S PROTECTION SYSTEMS, INC.

		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer

  
 [Signature Page to
Sixth Supplemental Indenture] 

 
			
	PROTECTION HOLDINGS II, INC.
		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	PROTECTION ONE, INC.
		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	 PROTECTION ONE ALARM MONITORING, INC.

		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	SECURITY MONITORING SERVICES, INC.
		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	PROTECTION ONE SYSTEMS, INC.
		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	PROTECTION ONE DATA SERVICES, INC.
		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer

  
 [Signature Page to
Sixth Supplemental Indenture] 

			
	 PROTECTION ONE ALARM MONITORING OF MASS., INC.

		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	MONITAL SIGNAL CORPORATION
		
	By:	 	 /s/ Timothy J. Whall

		 	Name: Timothy J. Whall
		 	Title: President and Chief Executive Officer
	
	ADT CANADA HOLDINGS, INC.
		
	By:	 	 /s/ Michael S. Geltzeiler

		 	Name: Michael S. Geltzeiler
		 	Title: Senior Vice President & Chief Financial Officer
	
	ADT HOLDINGS, INC.
		
	By:	 	 /s/ Michael S. Geltzeiler

		 	Name: Michael S. Geltzeiler
		 	Title: Senior Vice President & Chief Financial Officer
	
	ADT US HOLDINGS, INC.
		
	By:	 	 /s/ Michael S. Geltzeiler

		 	Name: Michael S. Geltzeiler
		 	Title: Senior Vice President & Chief Financial Officer
	
	ADT INVESTMENTS, INC.
		
	By:	 	 /s/ Michael S. Geltzeiler

		 	Name: Michael S. Geltzeiler
		 	Title: Senior Vice President & Chief Financial Officer

  
 [Signature Page to
Sixth Supplemental Indenture] 

			
	ADT LLC
		
	By:	 	 /s/ Michael S. Geltzeiler

		 	Name: Michael S. Geltzeiler
		 	Title: Senior Vice President & Chief Financial Officer
	
	ELECTRO SIGNAL LAB, INC.
		
	By:	 	 /s/ Michael S. Geltzeiler

		 	Name: Michael S. Geltzeiler
		 	Title: Senior Vice President & Chief Financial Officer
	
	S2 MERGERSUB INC.
		
	By:	 	 /s/ Michael S. Geltzeiler

		 	Name: Michael S. Geltzeiler
		 	Title: Senior Vice President & Chief Financial Officer

  
 [Signature Page to
Sixth Supplemental Indenture] 

 SCHEDULE I 
  

			
		
	 Notes Guarantors
	  	 Jurisdiction of Organization

		
	Prime Security Services Borrower, LLC	  	Delaware
		
	ASG Intermediate Holding Corp.	  	Delaware
		
	ASG Holdings LLC	  	Delaware
		
	Alarm Security Group LLC	  	Delaware
		
	ABC Security Corporation	  	Maryland
		
	Brinkman Security, Inc.	  	Texas
		
	ASG Government Services LLC	  	Delaware
		
	Nolan’s Protection Systems, Inc.	  	Texas
		
	Protection Holdings II, Inc.	  	Delaware
		
	Protection One, Inc.	  	Delaware
		
	Protection One Alarm Monitoring, Inc.	  	Delaware
		
	Security Monitoring Services, Inc.	  	Florida
		
	Protection One Systems, Inc.	  	Delaware
		
	Protection One Data Services, Inc.	  	Delaware
		
	Protection One Alarm Monitoring of Mass., Inc.	  	Massachusetts
		
	Monital Signal Corporation	  	New Jersey
		
	ADT Canada Holdings, Inc.	  	Delaware
		
	ADT Holdings, Inc.	  	Delaware
		
	ADT US Holdings, Inc.	  	Delaware
		
	ADT Investments, Inc.	  	Delaware
		
	ADT LLC	  	Delaware
		
	Electro Signal Lab, Inc.	  	Delaware
		
	S2 Mergersub Inc.	  	New Jersey

 EXHIBIT A 

[FORM OF SUPPLEMENTAL INDENTURE] 

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as of
[                    ], among [GUARANTOR] (the “New Guarantor”), a subsidiary PRIME SECURITY SERVICES BORROWER, LLC (or its
successor), a Delaware limited liability company, and THE ADT CORPORATION (or its successor), a Delaware corporation (the “Company”), and WELLS FARGO BANK NATIONAL ASSOCIATION, a national banking association, as trustee under the
indenture referred to below (the “Trustee”). 
 W I T N E S S E T H : 

WHEREAS, the Company and the Trustee executed and delivered an Indenture, dated as of July 5, 2012 (as originally executed or as it may be
from time to time supplemented or amended by one or more supplemental indentures supplemental thereto, the “Indenture”), to provide for the issuance by the Company from time to time of unsubordinated debt securities evidencing its
unsecured indebtedness; 
 WHEREAS, the Company has issued (i) $750,000,000 of 2.250% Notes due 2017, (ii) $1,000,000,000 of 3.500% Notes
due 2022 (the “2022 Notes”), (iii) $750,000,000 of 4.875% Notes due 2042 (the “2042 Notes”), (iv) $700,000,000 of 4.125% Senior Notes due 2023 (the “2023 Notes” and, together with the 2022 Notes and
the 2042 Notes, the “Secured Notes”) and (v) $1,000,000,000 of 6.250% Senior Notes due 2021; 
 WHEREAS, the Company, the
Trustee and the existing Notes Guarantors have executed and delivered a Sixth Supplemental Indenture, dated as of April 8, 2016 (the “Sixth Supplemental Indenture”), to provide guarantees and security in respect of the Secured
Notes; and 
 WHEREAS pursuant to the Indenture and the Sixth Supplemental Indenture, the Trustee, the Company and any Notes Guarantors are
authorized to execute and deliver this Supplemental Indenture; 
 NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the New Guarantor, the Company and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the Secured Notes as follows: 

1. Defined Terms. As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used
herein as therein defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to
any particular section hereof. 
 2. Agreement to Guarantee. The New Guarantor hereby agrees, jointly and severally with all existing
Notes Guarantors (if any), to guarantee the Company’s Obligations under the Secured Notes and the Indenture on the terms and subject to the conditions set forth in 

 
Article II of the Sixth Supplemental Indenture and to be bound by all other applicable provisions of the Indenture and the Sixth Supplemental Indenture and the Secured Notes and to perform all of
the obligations and agreements of a guarantor under the Indenture and the Sixth Supplemental Indenture. 
 3. Notices. All
notices or other communications to the New Guarantor shall be given as provided in Section 13.03 of the Indenture. 
 4. Ratification of
Indenture; Supplemental Indentures Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and
effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Secured Notes heretofore or hereafter authenticated and delivered shall be bound hereby. 

5. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
 6. Trustee Makes No Representation. The Trustee makes no
representation as to the validity or sufficiency of this Supplemental Indenture. 
 7. Counterparts. The parties may sign any
number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 

8. Effect of Headings. The Section headings herein are for convenience only and shall not effect the construction thereof. 

  
 A-2 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the date first above written. 
  

			
	[NEW GUARANTOR]
		
	By:	 	  

		 	Name:
		 	Title:
	
	THE ADT CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-3

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