Document:

Shanghai Municipality Property Lease

 Exhibit 10.18 
 Translation 
  
 NOTARY
CERTIFICATE 
  
 SHANGHAI OFFICE OF THE NOTARY PUBLIC OF

 THE PEOPLE’S REPUBLIC OF CHINA 
  

 Exhibit 10.18 
 Translation 
  

 SHANGHAI MUNICIPALITY PROPERTY LEASE CONTRACT 
 (PRE-LEASE OF COMMODITY PROPERTY) 
  
 PRINTED BY 
 SHANGHAI MUNICIPALITY
HOUSING LAND RESOURCES ADMINISTRATIVE BUREAU 
 SHANGHAI MUNICIPALITY ADMINISTRATION OF INDUSTRY AND COMMERCE 
  

 Exhibit 10.18 
 Translation 
  

 SPECIAL NOTICE 
  
 1. This Contract is applicable to the pre-lease of commodity housing and the property lease signed and negotiated pursuant to the market
principles that are located within the administrative district of this municipal, excluding those leases of publicly-owned residential houses with the fixed rent prescribed by the municipality government, administrative assigned houses, welfare
non-residential housing that are built and invested by the government, and privately-owned residential housing at the fixed rent prescribed by the municipality government before Shanghai Municipality Leasing of Building Premises Regulations
“Regulations” was put in force. 
  
 2. Pre-leasing is only
applicable to those commodity housing invested and built by the real estate developers with pre-selling license. However the commodity premises that have been pre-sold by the real estate developers shall not be pre-leased; and the advance purchaser
of the commodity housing shall not pre-lease the commodity housing. 
  
 3. The
terms [lease] or [pre-lease] in all articles of this contract are indicative symbols, suggesting such article is applicable to the deeds of lease or the deeds of pre-lease. When this Contract is used as property lease contract, only the articles
marked with [lease] shall be applied; while used as commodity pre-lease contract, only the articles and supplementary articles marked with [pre-lease] with the part containing “pre-leasing relevant matters” shall be applied. Other terms
without a [ ] mark are deemed as general terms, applicable to both leasing and pre-leasing situation. 
  
 4. When this Contract is used as commodity housing, both parties of the pre-lease shall sign a Commodity Housing Use Handover Letter after the construction commodity housing have been finished, the real estate
developer has completed the initial real estate registration and has acquired the Real Estate Ownership Certificate of . The original pre-leasing terms will be fulfilled when Commodity Housing Use Handover Letter takes effect. 
  
 5. This Contract is a ( trial) sample drawn up by the Municipality Real Estate Resource
Bureau and Shanghai Municipality Administration of Industry and Commerce, based on “Shanghai Municipality Leasing of Building Premises Regulations”. The contract terms are all indicative, available to both leasing parties to agree and use.
Should there be unsolved matters in this Contract, both parties may negotiate and determine supplemental terms through mutual consent. 
  
 6. Before signing this Contract, the lessor shall show the lessee the Real Estate Ownership Certificate or other subsidiary certificate to the lessee, the real estate
developer shall show the Pre-lease Permit to the pre-lessor. Both parties shall check the identity of each other. If the building premises shall be leased to a outsider, the lessor shall also show the “Building Premise Security License”
issued by the Police Authority. 
  
 7. The Parties shall handle the registration
and filing of this Contract in accordance with the regulations within 15 days after the signing of this Contract. For housing lease, the parties shall register with the local real estate trade centre or the farm general filing office and obtain the
Lease Contract Registration Proof ; for commodity housing pre-lease, foreign-sale commodity housing shall register and file with the municipality real estate trade centre; domestic sale of commodity housing shall register and file with the local
real estate trade centre. For pre-leasing, after the construction is finished, the Real Estate Ownership 

  

 Exhibit 10.18 
 Translation 
  

 
Certificate is acquired and the Pre-leasing Commodity Housing Use Handover Letter is signed by both parties, and then file and register with the local real
estate trade centre or the farm general filing office as required and to obtain the Lease Contract Registration Proof. After the leasing contract is registered and filed, it can act against a third party in the circumstances of overlapping of
pre-leasing, rent, transfer of the house during leasing term or being penalize for setting up a mortgage. 
  
 8. When one party requests registration filing while the other party does not cooperate, the party who requested the registration filing can take this Contract, a valid proof of identity and relevant documents to
administer the filing and registration. 
  
 9. The Property Lease Security Deposit
is a measure of performance guarantee. When the house is leased, the lessor can reach an agreement with the lessee in the contract to collect property lease security deposit. The amount of the deposit shall be determined by both parties. When the
leasing relationship terminates, the lessor shall deduct the costs due to be paid by the lessee in accordance with provisions of the contract from the deposit and return the balance to the lessee. 
  
 10. This version of Contract can be purchased from the real estate trade centre or farm
general filing office of the city, the district or where the house is located. Parties to this Contract shall read carefully and know full well the content of each term before using this Contract. 
  
 11. This Contract is a sample version for the parties to use as a reference. 
  
 12. If the leasing relationship in this Contract is acted by an agent or intermediary, the
leasing parties shall request the organization of the agent and the agent to sign and seal on the last page of this Contract. 
  

 Exhibit 10.18 
 Translation 
  

 SHANGHAI MUNICIPALITY PROPERTY LEASE 
 COMMODITY HOUSING PRE-LEASE CONTRACT 
  
 (Contract No.:                     ) 
  
 Parties of this Contract: 
  
 [Lease] 
  
 Lessor (Party A):             Shanghai CITIC Square Co., Ltd. 
  
 Lessee (Party B):             The9 Computer Technology Consulting (Shanghai) Co., Ltd. 
  
 [Pre-Lease] 
  
 Pre-Lessor (Party A): 
  
 Pre-Lessee (Party B); 
  
 In accordance with “Contract Law of the People’s Republic of China”, “Shanghai Municipality Leasing of Building Premises
Regulations (hereinafter referred to as the “Regulations”), both the Lessor and the Lessee, on the basis of equality, voluntariness, fairness, good faith, and honesty, in respect of Party B shall lease Party A’s CITIC
Square as allowed to be leased under laws, mutually agreed through consultation to enter into this Contract. 
  
 I. Status of the Premises for Lease or Pre-lease 
  
 1-1 Party A shall let to Party B the unit(s) situated at the whole floor of 30th Floor, CITIC Square, 1168 Nanjing Road West, Jing’an District, Shanghai (hereinafter referred to as the “Premises”). The Actual Estimated
construction area of such Premises is x square meter, the purpose of the Premises is complex, the type of the Premises is newly built commodity house, with reinforced concrete structure. See Appendix (I) of this Contract for the floor plan of such
Premises. Party A has already displayed to Party B the following documents: 
  
 1) [Lease] Real Estate Right Certificate/Real Estate Ownership Right Certificate [Certificate No. : 

 (2000)

 007941 

]. 
  
 2) [Pre-lease] Pre-sell
Permit [ Permit No.:                     ]. 
  
 1-2 Being the Real Estate Right Owner, Party A and Party B shall establish a lease relationship. Prior to the signing of this Contract, Party A has already informed Party
B that no mortgage was set up for such Premises. 
  
 1-3 The scope of use,
conditions and requirements for public use or for appropriate portion of such Premises; the existing fixtures, auxiliary facilities, status of equipments and the content, standard and the relevant matters that required consent, of the additional
auxiliary facilities and decoration installed by Party B with the consent of Party A are respectively listed by Party A and Party B in Appendices (2) and (3) of this Contract. Both Party A and Party B agree that those appendices shall 

  

 Exhibit 10.18 
 Translation 
  

 
be used as the basis of acceptance when Party A delivers to Party B such Premises and when Party B returns such Premises to Party A during the termination of
this Contract. 
  
 II. Purpose of the Lease 
  
 2-1 Party B undertakes with Party A that the lease of such Premises will be used for
x  , and in accordance with the relevant regulations concerning the use and property management of housing by the State and this municipality. 
  

2-2 Party B warrants that Party B shall not change the purpose of use as stipulated above without the prior written consent of Party A and without the prior review and
approval by the relevant departments as required during the lease term. 
  
 III.
Date of Delivery and Lease Term 
  
 3-1 Both Party A and Party B agree that Party
A shall deliver the Premises to Party B before _x_ (date) _x_ (month) _x_ (year). [Lease] The Lease Term begins from _x_ (date) _x_ (month) _x_ (year), to _x_ (date) _x_ (month) _x_ (year). [Pre-lease] The Pre-lease term begins from the date of
signing the Pre-leasing Commodity Housing Use Handover Letter to _x_ (date) _x_ (month) _x_ (year). 
  
 3-2 Upon the expiry of the Lease Term, Party A is entitled to reclaim the Premises, and Party B shall return the Premises as scheduled . If Party B needs to renew the lease, a written request of renewing the lease
shall be submitted to Party A _x_ months before the expiry of the Lease Term. Upon the consent of Party A, a new lease contract can be entered. 
  
 IV. Rent, Payment Method and Term 
  
 4-1 Both parties agree that the daily rent of such Premises is (_x_ currency) _x_ yuan per square meter of construction area. [Lease] The total of the monthly rent is
(_x_ currency) _x_ yuan. (In capital: _x_, _x_ . _x). [Pre-Lease ] The monthly rent is calculated based on the actual construction area determined in the Pre-leasing Commodity Housing Use Handover Letter by both Party A and Party B. 
  
 The rent of such Premises shall remain unchanged in _x_ (year/month). From
the _x_th (year/month), the Parties may adjust the rent through negotiations. Relevant matters of adjustment shall be agreed upon by both parties in the supplementary provisions. 
  
 4-2 Party B shall pay Party A the rent before the ___ (date) of each month. Should any delay of payment occur, Party B shall pay a penalty
of _x_% of the daily rent for each day of overdue. 
  
 4-3 Party B shall pay Rent
by the following method: 
  

  

  

 Exhibit 10.18 
 Translation 
  

 V. Deposit and Other Fees 
  

5-1 Both parties agree that, upon delivery of the Premises by Party A to Party B, Party B shall pay a Deposit to Party A thereon, which is the rent of
             (month), that is (             yuan). 
  
 After receiving the Deposit, Party A shall issue a receipt to Party B evidencing the payment. . 
  
 Upon the termination of the lease, Party A shall deduct from the deposit any
fees which shall be responsible by Party B in accordance with the provisions of this Contract and return the balance thereof without interest to Party B. 
  
 5-2 During the Lease Term, charges resulting from the use of water, electricity, gas, telecommunication equipment, property management,
             etc. shall be borned by Party B, and other relevant fees shall be borne by Party B. 
  
 5-3 In respect of the above charges borned by   x   (Party A/Party B), the methods for calculation, allocation,
payment and time are: 
  
 VI. House-Use Requirement and Maintenance
Responsibilities 
  
 6-1 During the Lease Term, Party B shall notify Party A
promptly any malfunction of the Premises and its auxiliary facilities for repair; Party A shall carry out repairing within x days after receiving the notification of Party B. Should Party A fail to carry out repairing within _x_ days, Party B
may carry out the repairing, with the relevant costs being borne by Party A. 
  
 6-2 During the Lease Term, Party B shall reasonably use and maintain such Premises and its facilities. Party B shall be responsible for repair of damages or malfunction arising out of the improper use or unreasonable use of such Premises
and its auxiliary facilities by Party A. In the event Party B refuses to repair, Party A may carry out the repair or maintenance, with the relevant costs being borne by Party B. 
  
 6-3 During the Lease Term, Party A warrants that such Premises and its auxiliary facilities are in a normal, usable and safe conditions.
Party A shall inform Party B x days in advance prior to the inspection and maintenance of such Premises. During the inspection and maintenance, Party B shall provide assistance. Party A shall reduce the influence of Party B using such
Premises during the inspection and maintenance. 
  
 6-4 Except as stipulated in
Appendix (III) of this Contract, should Party B need to renovate or install additional auxiliary facilities and equipments to the Premises, it shall seek written consent of Party A. If review and approval are required under the relevant regulations,
(Party A/Party designates Party B) x shall submit its application to the relevant departments for review and approval before the fitting-out and installation can be carried out. . In respect of the duty to repair and maintenance and the
ownership of the additional auxiliary facilities and equipments installed by Party B, both parties shall stipulate these in a separate agreement. 
  
 VII. Condition of the Premises When Returned 
  
 7-1 Unless Party A agrees to renew the lease with Party B, Party B shall return the Premises within x days after the term of the lease of this Contract expires.
Should Party B 

  

 Exhibit 10.18 
 Translation 
  

 
delay in returning the Premises without Party A’s consent, Party B shall pay to Party A the amount of which equals to x yuan per square meter
(x currency) for each day of delay as such Premises’ usage fee during such Premises possession period . 
  
 7-2 The Premises returned by Party B shall be in a normal use conditions, which shall be inspected and confirmed by Party A when returning, and each party shall settle
its respective responsible charges. 
  
 VIII. Sublease, Assign and Exchange

  
 8-1 Unless Party A has agreed through the supplementary terms of this
Contract for Party to sublease, during the Lease Term, Party B may sublease part or all of such Premises to others upon prior written consent of Party A. Provided however that the same Premises cannot be subleased in segments. 
  
 8-2 When Party B sublease such Premises, a written Subleasing Contract should be entered with
the sub lessee pursuant to the Regulations and relevant records shall be registered and filed with the local Real Estate Trading Centre or farm system of the district and county as required 
  
 8-3 During the Lease Term, should Party B assign such Premises to others to rent, or to
exchange the premises leased by other lessee, Party A’s prior written consent must be obtained. After the assignment or exchange, the assignee or the exchanged party of the leasing right of such Premises shall sign the amendment to the Leasing
Contract with Party A thereon, and continue to perform this Contract. 
  
 8-4
During the Lease Term, if Party A needs to sell such Premises, it shall inform Party B 3 months in advance. Party B shall have the right of the first refusal to purchase the Premises under the same conditions. 
  
 IX. Conditions to Terminate l this Contract 
  
 9-1 Both parties agree that, should any of the following cases emerge during the Lease Term,
this Contract shall be terminated and neither party shall be liable thereon: 
  
 (1) The land use right within the scope of such Premise is withdrawn ahead of time in accordance with the provisions of laws; 
  
 (2) Such Premises are confiscated due to social public interest adhering to the laws t; 
  
 (3) Such Premises is listed within the area of dismantling because of urban construction in accordance with the laws;

  
 (4) Such Premises are destroyed, damaged or identified as a
dangerous premises; 
  
 (5) Party A has already informed Party B
that such Premises is mortgaged prior to being leased and now is being penalized; 
  
 (6)
x                                        
                                        

  
 9-2 Both parties agree that in case one of the following cases emerges, either
party may give written notice to the other party to terminate the contract. The breaching shall pay a breaching premium equivalent to _x_ times of the monthly rent to the other party. Should the breaching party cause losses to the other party and
the breaching premium paid is insufficient to compensate such losses, the party in breach shall also pay the differences between the losses and the breaching premium: 
  
 (1) Party A fails to deliver the Premises as scheduled and has not delivered within x days after Party B’s
further notice; 
  

 Exhibit 10.18 
 Translation 
  

 (2) Such Premises delivered by Party A fail to comply with the provisions stipulated herein, which
leads to the failure of realizing the leasing purpose; or such Premises delivered by Party A is defective, endangering the safety of Party B; 
  
 (3) Party B changes the purpose of the use of the Premises without obtaining the written approval of Party A, which leads to damages to the Premises;

  
 (4) Should the main structure of the Premises be damaged out
of the reasons of Party B; 
  
 (5) Party B sublease, assign the
leasing right of such Premises or exchange its respective lease with others without being approved by Party A; 
  
 (6) Party B fails to pay Rent for an accumulated time of over _x_ months; 
  
 (7)
x                                        
                                        
     
  
 X. Default 
  
 10-1 Should the Premises be defective at the time of delivery, Party A shall repair within
_x_ days from the date of delivery. Should Party A fail to repair as scheduled, Party A agrees to reduce the rent and revise the provisions concerning rent. 
  
 10-2 Should losses occur to Party B because Party A fails to inform Party B that the Premises has been mortgaged or the transfer of property rights has been restricted,
Party A shall be liable to compensate for such losses. 
  
 10-3 During the Lease
Term, should Party A fail to implement its duties of repair and maintenance in due course as agreed in this Contract, which leads to the damage to the Premises or causes property losses or personal injury to Party B, Party A shall be liable for
compensation. 
  
 10-4 During the Lease Term, should Party A terminate this
Contract and recover the Premises ahead of time out of the reasons beyond the provisions of this Contract, Party A shall pay a breaching premium equivalent to _x_ times of the rent for the number of days that the Premises is taken back prior to its
prescribed schedule. Should the breaching premium be not enough to offset the losses of Party B, Party A shall be liable for compensation. 
  
 10-5 Party B fails to obtain prior written consent of Party B or exceed the scope of Party A’s written consent and require to renovate the Premises or installed
auxiliary facilities, Party A may request Party B to x (recover the Premises in it original state /compensate the losses). 
  
 10-6 During the Lease Term, Party B early terminates the lease beyond the provisions stipulated in this Contract; Party B shall pay a breaching premium equivalent to
x times of the rent for the number of days that the lease is early terminated . Should the breaching premium be insufficient to offset the losses of Party A, Party A may deduct such amount from the Deposit. Should the Deposit be insufficient
to offset such deduction, Party B shall be to pay the balance. 
  

 Exhibit 10.18 
 Translation 
  

 XI. Miscellaneous 
  
 11-1 During the Lease Term, should Party A need to mortgage such Premises, Party A shall notify Party B of the same in writing and undertake to Party B that a written
inquiry will be given to Party B to inquire Party B’s opinion in purchasing such Premises x days prior to the relevant party agrees to sell or sell in discount such Premises. 
  
 11-2 This Contract shall take effect upon execution/ after x it is signed by both parties. Within 15 days after the Contract comes
into effect, Party A shall be responsible for handling the filing and registration with the local Real Estate Trade Center or farm system of the district and county and obtaining the filing certificate for property leasing registration. Should the
Contract need to be altered or terminated after this Contract is filed and registered, x (Party A/Party B) shall be responsible for handling the formalities of alternation and termination with the original registration authority within 15
days from the date of alteration and termination of this Contract. Party A shall be responsible for all legal liabilities for disputes arising from the reasons that Party A fails to handle the registration and filing for the leasing of the Premises
or for the alteration and termination. 
  
 11-3 Both parties may sign a
supplementary terms to this Contract through negotiations for other matters not covering in this Contract. The supplementary terms and appendices to this Contract are the integral parts of this Contract. The written and printed words filled in the
blanks of this Contract as well as the supplementary terms and appendices shall have equal effect. 
  
 11-4 Both parties clearly understand their respective rights, obligations and responsibilities when signing this Contract and are willing to strictly abide by the contract provisions. Should one Party be in breach of
this Contract, the other Party shall be entitled to lodge claims in accordance with the provisions of this Contract. 
  
 11-5 Any disputes emerging between the parties during the term of the contract shall be settled through consultations, failing which both parties agree to settle the
disputes through the following _x_th approach: 
  
 (1) to
be submitted for arbitration by Shanghai Arbitration Commission; 
  
 (2) to bring an action to the People’s court in accordance with law. 
  
 11.6 This Contract and the appendices are prepared in quadruplicate. Each Party keeps one copy. The Real Estate Trade Center of Jing’an District or farm bureau keeps one copy and Shanghai Notarization Office
keeps one copy. All copies shall have equal effect . 
  

 Exhibit 10.18 
 Translation 
  

 Supplementary terms 
  
 I. Relevant Matters of Pre-leasing 
  
 1-1 As stipulated by both parties, Party A should receive from Party B _x_ yuan (equivalent to RMB _x_ yuan) as pre-paid fundon a lump-sum basis on the day when this
Contract comes into effect. The prepaid fund is for the use of _x_. 
  
 1-2
Delivery of the commodity premises pre-leased by Party A must comply with the following     th scheme: 
  
 (1) has handled the initial real estate registration and obtained the Real Estate Property Right Certificate for newly-built commodity premises;

  
 (2) non-residential commodity premises has obtained the
certificate for being examined and approved for the completed project; residential commodity premises has obtained the “permit for delivery and use”. 
  

Both parties agree that, if scheme (2) above is opted, this supplementary term shall clarify the rights, obligations and risks responsibilities during
the time of delivery of the Premises and signing of the handover and use letter. 
  
 1-3 Both parties agree that: 
  
 If scheme (1) above is
opted, Party A shall, after obtaining the real estate property right of newly-built commodity premises, inform Party B of signing the Commodity Premises Pre-leasing Handover for Use Letter, and deliver the pre-leased commodity premises upon signing
of the Commodity Premises Pre-leasing Handover for Use Letter. 
  
 If scheme (2) above is opted, Party A shall obtain the new real estate property right certificate within x days after the Premises is delivered, and inform Party B to sign the Commodity Premises Pre-leasing Handover for Use Letter.

  
 1-4 The commencement date of the lease of such Premises is the date when
Commodity Premises Pre-leasing Handover for Use Letter is signed. 
  
 1-5 The
construction area of such Premises determined by the survey authority of the Shanghai Municipality Housing and Land Management Bureau after the construction completion shall be the actual construction area of such Premises. Both parties agree that
in the event the difference between temporarily measured space area and the actual measured construction area exceeds + x % (including x%), Party B shall have the right to terminate this Contract. 
  

 Exhibit 10.18 
 Translation 
  

 1-6 Both parties agree, in case of any of the following situation, one Party may lodge claims against the other
Party. Additional default responsibilities are agreed upon by both parties in supplementary terms: 
  
 1. Party A delays to delivery the Premises; 
  
 2. the Premises delivered by Party A does not comply with the provision as stipulated in Appendix (III) of this Contract; 
  
 3. before the delivery of the Premises, Party A or Party B terminates this
Contract; 
  
 4. _____________________x_____________________

  
 1-7 During the Pre-lease Term, Party B shall not sublease the, assign the
leasing right or exchange the leasing right of such Premises. 
  
 II. Other
Relevant Matters 
  

 Exhibit 10.18 
 Translation 
  

 Appendix I 
  
 The Floor Plan of Such Premises 
  
 CITIC SQUARE 
  
 30th Floor 
  

 Exhibit 10.18 
 Translation 
  

 Appendix III 
  

Status of the exiting fixtures, auxiliary facilities and equipment and agreed decoration and additional auxiliary facilities and equipment installed by Party B at
Party A’s consent 
  

  
 CITIC SQUARE Basic Handover Conditions (Office) 
  
 Lessor Area 
  

	1.	Partition are constructed by reinforced concrete, concrete bricks or bricks 

  

	2.	Concrete platform 

  

	3.	Interior walls are latex and caulked 

  

	4.	Acoustic ceiling system and lighting, building central air conditioning system (with adjustable cooling level end device) supply and ventilate duct installed on standard area

  

	5.	Automatic extinguishing system 

  

	6.	Separate meter in Electric Room 

  
 Note: The Lessee shall hire and pay for the authorized contractor of the Lessor for connecting its electrical equipment to the central switch and the
separate meter to be installed by the Lessor. 
  

	7.	Fire proof in balance solid wood front door 

  

	8.	Floor and wall base main system 

  

	9.	Others:     Smoke detector 

  
         Thermal device 
  

 Exhibit 10.18 
 Translation 
  

			
	 Lessor (Party A):
 Shanghai CITIC Square Co.,
Ltd.
  
 Nationality:
 Legal Representative:
 Registration Certificate/Identity No:
 Address:
 9th Floor, 1168 Nanjing Road West,
 Shanghai Municipality
 Postal Code: 200041
 Telephone: (8621) 621801801
 Designated Agent: (illegible)
 Sign and Seal: (illegible)
 Execution date: 4 July 2003
 Place of execution:
	 	 Lessee (Party B):
 The9 Computer Technology Consulting
(Shanghai) Co., Ltd.
  
 Nationality:
 Legal Representative:
 Registration Certificate/Identity No:
 Address:
  
  
 Postal Code:
 Telephone:
 Designated Agent:
 Sign and Seal:
 Execution date: 4 July 2003
 Place of execution:

  
 Name
of the organization of broker: 
 Name of broker: 
 Certificate No. of the qualified broker: 
  

 Exhibit 10.18 
 Translation 
  

 CITIC Square Leasing Contract 
 Supplementary Terms 
 Content 
  

					
	 Index
	  	 
	 12-1
	  	Party B
	 12-2
	  	Parties
	 12-3
	  	The Premises
	 12-4
	  	Interior Repair and Maintenance
	 12-5
	  	Delivery
	 12-6
	  	No deduction
	 12-7
	  	Deposit
	 12-8
	  	Breach or default
	 12-9
	  	Return of Deposit
	 12-10
	  	Government Tax
	 12-11
	  	Method of Payment
	 12-12
	  	Fee Adjustment
	 12-13
	  	Fees not included in Rent
	 12-14
	  	Public utility fees
	 12-15
	  	Penalty
	 12-16
	  	Calculation of Penalty
	 12-17
	  	Right reserved by Party A
	 12-18
	  	Party B’s repair and maintenance responsibilities
		
	 12-19
	  	Party B’s undertaking and guarantee
	 12-20
	  	Renovation
	 12-21
	  	Party A’s repair and maintenance responsibilities upon the Premises
		
	 12-22
	  	Force Majeure
	 12-23
	  	Sublease and Sublet
	 12-24
	  	Sale and Rebuild
	 12-25
	  	Insurance
	 12-26
	  	Party A’s maintenance and repair responsibilities upon the central air-conditioning
	 12-27
	  	Potential tenant
	 12-28
	  	Disclaimer
	 12-29
	  	Release of Responsibilities
	 12-30
	  	Early Termination
	 12-31
	  	Party A reserves the right to enter the Premises
	 12-32
	  	Unilateral Termination
	 12-33
	  	Demand for payment of rent and other fees
	 12-34
	  	Rights reserved by Party A
	 12-35
	  	Cut off electricity and water supply
	 12-36
	  	Forgiveness not deemed as waiver
	 12-37
	  	No Waiver
	 12-38
	  	 
	 	  	 (1)    
	  	 Test electronic lines

	 	  	 (2)    
	  	 Obey the rules and regulations

  

 Exhibit 10.18 
 Translation 
  

					
	 	  	(3)	  	Debris Removal
	 	  	(4)	  	Signal board
	 	  	(5)	  	Name board
	 	  	(6)	  	Change construction plan
	 	  	(7)	  	Nuisance
	 	  	(8)	  	Usage
	 	  	(9)	  	Commodity production
	 	  	(10)	  	Explosive
	 	  	(11)	  	Smell
	 	  	(12)	  	Lay objects in public place
	 	  	(13)	  	Prepare food
	 	  	(14)	  	Pet and animal
	 	  	(15)	  	Infection
	 	  	(16)	  	Sublease and sublet
	 	  	(17)	  	Vacate and return the Premises
	 	  	(18)	  	Change and enlarge construction
	 	  	(19)	  	Use the name of the property
	 	  	(20)	  	Not allowed to hawk
	 	  	(21)	  	Loading/Unloading Goods
	 	  	(22)	  	Elevator and escalator
	 	  	(23)	  	Posting
	 	  	(24)	  	Spray and paint
	 	  	(25)	  	Public facility and greenery
	 	  	(26)	  	Locks
	 	  	(27)	  	Structure Overload
	 	  	(28)	  	Agent
	 	  	(29)	  	Equipment and facility
	 	  	(30)	  	Obstruction of Passages
	 	  	(31)	  	Blocking drain
	 	  	(32)	  	Payment of repair expense
	 12-39
	  	 	  	 
	 	  	(1)	  	Not to interfere
	 	  	(2)	  	Government tax income
	 	  	(3)	  	Roof and main structure
	 	  	(4)	  	Cleaning-up of public area
	 	  	(5)	  	Functional conditions under repair and maintenance
	 	  	(6)	  	Air-conditioning services
	 12-40
	  	Default
	 12-41
	  	Right of First Refusal to Purchase
	 12-42
	  	Alteration Construction of Party A
	 12-43
	  	Right to name
	 12-44
	  	Notarization fee, stamp duty and registration fee
	 12-45
	  	First-class comprehensive building
	 12-46
	  	Notification to Party B
	 12-47
	  	Notification to Party A
	 12-48
	  	Mail
	 12-49
	  	Legal fee
	 12-50
	  	Entire Agreement
	 12-51
	  	Supplemental Agreement
	 12-52
	  	Governing Law

  

 Exhibit 10.18 
 Translation 
  

					
	 12-53
	  	Schedule IV
	 12-54
	  	Dispute Solution
	 12-55
	  	Headings and index
	 12-56
	  	Effectiveness of Contract and registration and filing
	
	Appendix I
	 	  	Part 1
	 	  	 	  	Rental Commencement Date
	 	  	 	  	Lease Term
	 	  	Part 2
	 	  	 	  	Rent
	 	  	 	  	Fluctuation of exchange rate
	 	  	 	  	Payment method
	 	  	Part 3
	 	  	 	  	Construction Area
	
	Appendix II
	 	  	Part 1
	 	  	 	  	Air-conditioning and management fee
	 	  	Part 2
	 	  	 	  	Other fees
	 	  	Part 3
	 	  	 	  	Deposit
	 	  	Part 4
	 	  	 	  	Usage
	 	  	Part 5
	 	  	 	  	Payment method
	
	Appendix III
	Detailed information of Party A
	Detailed information of Party B
	Appendix IV
	 	  	1.	  	Management rules, regulations system
	 	  	2.	  	Use of covenant
	 	  	3.	  	Air-conditioning Schedule
	 	  	4.	  	Limitation and supervision during the time without air-conditioning
	 	  	5.	  	Parking space
	 	  	6.	  	Telecommunication

  

 Exhibit 10.18 
 Translation 
  

 CITIC Square Leasing Contract 
  
 Supplementary terms 
  
 This supplementary terms are supplements to the “Shanghai Municipality Property Leasing Contract” (hereinafter refer to as “the Main
Contract”) signed by both Party A and Party B in respect of the leasing of such Premises and together with the main text, appendices, schedules and appendices collectively referred to as “this Contract”. If there is any inconsistency
between the Main Contract, this supplementary terms and the appendices, this supplementary terms and the appendices shall prevail. If the blank area of a term in the Main Contract is filled with “x” while this supplementary terms and
appendices have no agreement thereon, it shall be deemed that the parties do not reach any agreement on such term. 
  
 12-1. In this Contract, unless otherwise stated, “Party B” means Party B and/or the receiver, heir, employee, servant, construction unit, agent, borrower,
contractor, customer, client of Party B and anyone related to Party B (hereinafter collectively referred to as “these People”). Hence, prohibition or limitation to Party B in this Contract shall equally apply to these People; and these
People shall observe and perform the matter as Party B shall do under this Contract; any deliberate, neglect acts done by these people shall be deemed as deliberate, neglect acts done by Party B per se, for which Party B shall be responsible to
Party A, Party B shall be responsible to fully indemnify Party A against all fees, expense, claims, and legal proceedings to third party in connection therewith. In this Contract, any provision that prohibits Party B from conducting or proceeding
any activities shall include the prohibition of Party B from permitting, allowing or triggering these people to conduct or proceed with such activities. 
  
 12-2. The detailed information of Party A and B is listed in the Appendix III of this Contract. 
  
 12-3. The Premises is located at the office building of the CITIC Square at the 30th Floor, No. 1168 on Nanjing Road West in Shanghai
(hereinafter referred to as “the Premises”). It occupies the whole 30th floor of the Premises. The
construction area of the Premises is listed in the Part 3 of Appendix I of this Contract. 
  
 The floor plan of the Premises (used for recognition convenience, not including the part of the exterior wall of the Premises) is listed in Schedule I of this Contract, marked by red frame lines and oblique lines.

  
 Party B hereby irrevocably makes a clear and definite
declaration: prior to the signing of this Contract, Party B has surveyed the construction area of the Premises and agreed to the rent listed in Part 2 of Appendix I and both parties agreed not to make any rental adjustment upon the discrepancy
between such area and the area surveyed and measured by the government, or by other surveying and measuring authorities, or any other people or organizations, or the net area or area calculated through other methods. 
  
 12-4. Party B hereby declares definitely: that before signing this Contract, Party B has
inspected the Premises on spot and has adequate understanding and is satisfied with the existing decoration and condition of the facilities. 
  

 Exhibit 10.18 
 Translation 
  

 Party B shall maintain the Premises and its interior in a lettable and useable condition. Party B
shall also repair, maintain and paint the interior of the Premises from time to time during the Lease Term at it’s own expense in accordance with Party A’s requirement (but such standard not necessarily be better than the original
condition of the Premises). 
  
 When the Lease Term expires or
early terminates, Party B shall smoothly return to Party A the Premises with all of its auxiliary, devices and additions it a lettable and useable condition in accordance with the provisions of this Contract (including but not limited to the
4th clause of the Article 12-20 of this Contract). Meanwhile, Party B shall return to Party A all the keys to each
part of the Premises. 
  
 If Party B fails to return the Premises
to Party A as scheduled pursuant to the above provision, Party B shall compensate all the loss hereby suffered by Party A, including but not limited to the breaching premium and the intermediary fee to be responsible by Party A due to the new tenant
for the delay of delivering the Premises. Besides, Party B shall pay to Party A double the daily rent as the occupying useage fee from the day the Premises is delayed in returning the Premises. 
  
 12-5. Supplement to the Article 3-1 of this Contract as follows: 
  
 Whereas the whole 30th floor of the Premises has actually been delivered to Party B, Party A and Party B do not need to go through the handover procedure again. 
  
 12-6. During the Lease Term, Party B shall not for any reason deduct its payment of rent,
air-conditioning fee, management fee and other fees that Party B shall pay to Party A in advance. 
  
 The rent free period of the Premises is listed in Appendix I of this Contract. 
  
 12-7. At the time of signing this Contract, Party B shall pay to Party A the Deposit listed in Appendix II of this Contract to ensure that
Party B shall observe and perform all the agreement, terms, stipulations, conditions that Party B shall observe and perform under this Contract. In the Lease Term, the Deposit shall be kept by Party A, Party A shall not required to pay any interest
of the Deposit to Party B. 
  
 12-8. When Party B breaches, non-observe,
non-perform of this Contract (without prejudice to any other rights or remedies method Party A may have against such breach, non-observance or non-performance), Party A shall have the right to deduct from the Deposit of the Premises paid by Party B
to compensate all the losses, damages (including but not limited to loss of rent) suffered by Party A due to such breach, non-observance or non-performance of Party B. Under such circumstances, within 14 days after Party A informs Party B in written
form, Party B shall replenish the Deposit to compensate the part taken by Party A, and thereafter this Contract shall continue to be valid. If Party B fails to comply with the aforesaid stipulations, Party A shall have the right to take back the
Premises forthwith and terminate this Contract unilaterally and forfeit the Deposit. 
  
 12-9. Without prejudice to other rights of Party A under this Contract, Party A shall return to Party B the Deposit or its balance (if any) without interest upon the expiration of this Contract and within 30 days after Party B vacate from
the Premises and return of the Premises to Party A, or within 30 days after Party B pays to Party A the final unpaid amount of losses resulting from Party B breach, non-observance, non-performance of any agreement, terms, stipulations, of this
Contract. 
  

 Exhibit 10.18 
 Translation 
  

 12-10. Unless otherwise stated by law, Party B shall pay on time (from the beginning of the lease term) all the taxes
and other fees (except real estate tax) arising out of the leasing of the Premises payable by Party B to the governmental authorities pursuant to the laws and regulations of the People’s Republic of China. Except those that Party A has given
specific direction and that Party A shall pay and withhold in accordance with law, Party B shall pay all the taxes and other fees on its own to the relevant governmental departments. 
  
 12-11. Method for payment of rent, the air conditioning and management fees and other fees in the term 4-3 in this Contract is as follows:

  
 Both Parties to this Contract agree on the Rent of the
Premises as listed in Appendix I of this Contract. 
  
 Party B has
made the following promise to Party A: 
  
 In accordance with the
provisions of this Contract, or by written notifications given by Party A from time to time, the Rent must be paid to Party A; Party B shall be pay Party A in advance, on the signing date of this Contract the rent, the air conditioning and
management fees for the remaining days of the first calendar month after the initial rent free period, and the total amount shall be calculated proportionally by multiplying the respective rent, air conditioning charges and management fees of the
relevant month by the number of remaining days of such month and the actual number of days of such month; the amount of Party B’s last payment of rent, air conditioning charges and management fees shall equal to the sum of rent, air
conditioning charges and management fees for the relevant month multiplied by the proportion of the specific number of days of the Lease Term in the last month and the actual number of the days of the relevant month. 
  
 Both Parties to this Contract agree that the fitting-out of the Premises is
listed in Appendix I of this Contract. If Party B enters the Premises during the fitting-out period to conduct interior renovation, partition, construction, installation of equipment or alteration, Party B is exempted from paying rent to Party A,
but shall pay the fit-out deposit and management fees and other fees during the fitting-out period (including but not limited to all relevant fees arising from the temporary water supply, electricity supply, clearing up and debris removal, examining
the design during the fitting-out period). The fit-out deposit mentioned above shall be returned by Party A to Party B without interest, provided that Party B has not breached any relevant provisions on fitting-out under this Contract. During the
fitting-out period, the air conditioning fee shall be calculated from the date of actual consumption. 
  
 12-12. Both Parties to this Contract agree that the air conditioning fee, management fee and other fees of the Premises are listed in Appendixes II of this Contract, except that the air conditioning charges and
management fee and other fees may be adjusted in accordance with the stipulation in this Contract. 
  
 Party B has made the following undertakings to Party A: 
  
 If, during any time of the Lease Term, due to adjustment of air conditioning fee, management fee and other fees by the management office in charge of such
Premises in accordance with the covenant, Party A has the right to inform Party B in writing 30 days in advance to adjust the air conditioning charges, management fees and other fees accordingly. Party B shall pay to Party A the amount of the
adjusted fees superceding such amount as 

  

 Exhibit 10.18 
 Translation 
  

 
listed in Appendix II of this Contract. If the management office make adjustments again or several times, Party A has the right to inform Party B by giving
30 days written notice in advance to adjust the relevant air conditioning fee, management fee and other fees. The adjusted amount of fee shall be submitted by Party A to the local pricing department for registration and filing in accordance with the
laws and regulations. 
  
 12-13. Party B shall pay rent to Party A. Such rent
shall not include any tax and other fees that is payable by Party B to the relevant governmental departments in accordance with law, such as sale tax, value-added tax, tariff, etc. and other expenses. Meanwhile, the rent shall not include air
conditioning fee, management fee and other fees. 
  
 12-14. The detailed
“calculation or allocation method, payment method and time” as referred to in Article 5-3 of this Contract is as follows: 
  
 In accordance with the amount shown on the independent recording schedule of the Premises, or pursuant to the unit invoice provided by Party A to Party B,
, Party B shall pay all the fees for the use of water, electricity and telephone in the Premises within 7 days after receiving such record or bill in accordance with Party A’s instruction. 
  
 12-15. If Party B defaults to pay any one item, or several or all items of fees prescribed in
this Contract for more than 14 days, including but not limited to rent, air conditioning charges and management fee, other fees, water supply fee, electricity fee and telephone fee, without prejudice to other rights or remedies of Party A, Party A
has the right to request Party B to pay a surcharge of 0.3% daily interest as late fee. Party B shall independently undertake any penalty arising from the late payment of fees for the use of water, electricity and telephone. 
  
 12-16. The late fee is calculated from the due date of payment of any, several or all items
of fees prescribed in the Article 12-15 of this Contract, until Party B has paid all the principal, interest, late fee and other relevant charges of aforesaid fees. 
  
 12-17. In accordance with this Contract, Party A requests or collect the late fee payable by Party B, without prejudice to any other rights
endowed by this Contract (including the right to recover the Premises). 
  
 12-18.
As Article 6-2 of this Contract provides, the Premises or the facilities damaged arising from the improper use of Party B, Party B shall immediately be responsible to repair or to provide economic compensation. Such situations include but are not
limited to: 
  
 (1) Party B shall pay for or reimburse Party A
for all costs of replacing all broken or damaged windows or glass of the Premises that are broken or damaged due to the reasons caused by Party B; 
  
 (2) Due to dangerous and incorrect maintenance of any electrical installations, electrical appliances, wirings of the Premises, and/or due to careless,
improper use and neglect of Party B which causes the water pipe, toilet, appliances to block, impair or suspend in operation, or due to the willful misconduct or negligence conduct of Party B which causes fire, smoke to diffuse inside the Premises
or any source of water including from windstorm or rainfall to spill or overflow in the Premises, and/or any part of it, and/or due 

  

 Exhibit 10.18 
 Translation 
  

 
to damage caused by Party B to any public area of the Premises, Party A and/or the management office and a third Party directly or indirectly suffer loss or
impair, consequently Party B shall compensate and redeem to Party A for all the expense, claims and damages resulted therein. Such compensation includes but not limited to any repair and maintenance expense, and any fee Party A has paid for claims
of other people for the above situation and any expense and fee (including legal service fee) for the claim of Party A and/or the management office from Party B; 
  
 (3) At anytime during the Lease Term, Party B shall at its own expenses remove any structures, buildings, partitions and
other alterations inside the Premises not in compliance with the relevant regulations and ordered to be demolished by the real estate management authority or other relevant governmental authorities in Shanghai regardless whether such structures,
buildings, partitions and other alterations are built with or without the consent of Party A; 
  
 Party B shall compensate Party A for all damages to the Premises arising from removing the said structures, buildings, partitions and other alterations. Party A has no liability of any loss suffered by Party B for
carrying out the prescription in this provision; 
  
 (4) Party A
shall be entitled without notice and at the expense of Party B to clear and dispose of as Party A deems fit any case, box, rubbish or obstacles of any other kind or nature leave in any area outside of the Premises Any expense resulted therefrom
shall be paid by Party B, and Party A shall not be liable to Party B or any other person in respect of the aforesaid action. Party B shall indemnify Party A for all losses, claims, compensations or fees arising from Party A’s execution of this
stipulations; 
  
 (5) Party B shall give oral notice and written
notice to Party A and the management office promptly of any damage caused to the Premises, or injury suffered by any person(s) thereon, or any outbreak of fire or any accident in the Premises or any malfunction of or damage, crack or defects in the
water pipes, electrical wiring, fittings, fixtures or other facilities within the Premises; 
  
 (6) If Party B fails to observe the requirement of this Article to maintain or construct, Party A shall upon given prior notice to Party B to let its employee or agent to enter into the Premises to carry out the
maintenance work or job. Party B shall be liable to all the fees arising from such maintenance work or job. 
  
 12-19. Party B undertakes and guarantees to Party A: the following 
  
 (1) If Party B has conducted any activity, matter or other acts or omissions, that violates or offends the relevant law and regulations of China and the
order of the relevant governmental departments that causes any loss to Party A, Party B shall compensate Party A and be liable to all legal responsibilites; 
  
 (2) If Party B receives any notification or subpoena issued by the relevant governmental departments concerning the Premises, Party B shall inform Party A
in writing within 48 hours; 
  

 Exhibit 10.18 
 Translation 
  

 (3) Party B guarantees that before developing and managing its business in the Premises, it shall
apply for and acquire from the relevant government departments all the necessary licenses, approvals or permits (if any). Party B must ensure that such licenses, approvals or permits to be fully in effect during the Lease Term and in every aspect
accord with the prescriptions of these licenses, approvals or permits. 
  
 12-20.
Supplement to the Article 6-4 of this Contract as follows: 
  
 1.
Prior to carry out the interior renovation, partitions, alteration works equipment installation or reconstruction of the Premiese, Party B must: 
  
 (1) Acquire the prior written consent or approval from Party A or management office in respect of the aforesaid action and its proposals, plans, schematic
drawings and related documents of the design, construction, material, etc.; 
  
 (2) Acquire all the necessary approvals, licenses or permits from the relevant governmental departments; 
  
 (3) Guarantee that such kind of interior renovation, partitions, repair, equipment installation or reconstruction shall not affect the normal business
activities of other lessors in the whole office building; 
  
 (4)
Generally, the application form of Party B to conduct internal decoration, partition, construction, equipment installation or reconstruction should be submitted to the related governmental departments by Party B or by an agent of Party B. But if
Party A deems necessary, Party A shall have the right to submit such application to the relevant governmental departments on Party B’s behalf. Party B shall pay all fees incurred in order to comply with this clause, and shall be solely
responsible for all the consequences arising from such delay and losses which are suffered from the rejection or revision by the relevant governmental government of Party B’s fitting-out construction application. 
  
 (5) Hire the contractor or construction company designated or approved by
Party B to carry out such fitting-out, reconstruction work, Party B must comply with relevant fitting-out regulations and standard as amended from time to time prepared by Party A or the management office. 
  
 2. After Party B receives the notification issued by Party A or its
authorized representative to illustrate any remedy or construction project Party B shall take charge and conduct pursuant to the terms in this Contract, Party B shall begin and carry through such remedy or construction work within 1 month from the
issuing date of the notification. 
  
 3. Party B shall guarantee
that the contractor or the construction company employed to do the internal decoration, partition, repair construction, equipment installation or reconstruction should, during the period of the above mentioned behavior, buy and maintain at its own
cost an insurance with a reputable insurance company that Party A is satisfied with, in respect of the various insurance for the Premises with a reputable insurance company. Party 

  

 Exhibit 10.18 
 Translation 
  

 
A shall have the right to request such contractor or the construction company to designate Party A as the mutual beneficiary of such insurance and that the
insurance coverage is not less than RMB3 million yuan. 
  
 4. When
the lease term expires or early terminates, if Party B has done any reconstruction work to the Premises, or installed any auxiliary, device or additions to the Premises, even though such decoration, reconstruction or installation has obtained Party
A’s consent, Party A shall still have the right to request Party B to recover the Premises at its own cost prior to return such Premises to Party A (note: the list is in Appendix III), remove or dismantle such rebuilt construction, auxiliary,
installation and additions or any other parts; and request Party B to undertake all fees, compensation and to repair the resulted damage to the Premises (including the auxiliary and additions) in an appropriate and neat way. 
  
 If Party B breaches the stipulations of this clause, Party A shall have the
right to carry out the repair of the Premises as he deems appropriate pursuant to its absolute discretion . All the expenses and fees arising therefrom shall be borne by Party B. Party A shall have the right to consider such expenses and fees as
debt and can claim against Party B, or to deduct such expenses and fees from the Deposit of the Premises held by Party A. 
  
 12-21. Supplement to Articles 6-1 and 6-3 in this Contract as follows: 
  
 (1) Party B has the duty to maintain the Premises, and Party A has only the duty to maintain the public facilities, including emergency light, main upper
and lower penstock, main water pipe, telephone communication centre, main structure, smoke and fog detecting system, central air-conditioning. Provided however that the repair duty of Party A does not apply to any damages resulted from the
negligence or neglect of Party B. 
  
 (2) Party B shall permit
Party A at any reasonable time upon prior written notice to Party B to enter the Premises to inspect the repair condition or to take inventories of the fixtures and fittings therein or carry out necessary repair or maintenance, alteration or other
works with or without workmen and with or without appliances. 
  
 In case of emergency, Party B shall allow Party A or its agent, may enter the Premises without notice and forcibly if necessary, and Party A shall not be responsible for any for the damages caused by such forcible entry. 
  
 12-22. Supplement to the third clause of Article 9-1 in this Contract as follows: 

 
 If the Premises or any part of it, during any time of the Lease Term, be
destroyed or damaged or become inaccessible owing to fire, water, typhoon, disaster and or cause beyond the control of Party A and not attributable directly or indirectly to any act or default or neglect or omission of Party B so as to rendered the
Premises unfit for use or occupation. Then the rent hereby reserved or a fair proportion thereof according to the nature and extent of the damage sustained shall be suspended from the date the damage occur until the said Premises shall have been
reinstated or reconstructed. 
  

 Exhibit 10.18 
 Translation 
  

 Provided that Party A shall under no obligation to repair or reinstate the said Premises if in its
opinion it is not reasonably economical and practicable to do so. 
  
 If the Premises has not been repair or reinstated within 3 months after the occurrence of such damage and destruction, either Party A or Party B can before the Premises is repaired or reinstated inform the other in writing to terminate this
Contract,: 
  
 Provided that without prejudice to the rights and
remedies of either party against the other in respect of any antecedent claim for breach of the agreements, stipulations, terms and conditions herein contained and without prejudice of Party A in respect of the rent or other charges payable
hereunder prior to the coming into effect of the suspension. When Party A or Party B receives the written notification from the other Party in accordance with the provision of this term, this Contract terminates and is invalidated from the day the
Premises is damaged or destroyed, or the day the Premises is rendered unfit for use or occupation. 
  
 12-23. Supplement to Articles 8-1, 8-2, and 8-3 of this Contract as follows: 
  
 Party B shall not assign, sublet, terminate the use of, or sublease the Premises or any part thereof. Party B shall not
assign the right to any other third person (hereinafter referred to as “Sublessee”) at the Premises, unless Party A’s prior written consent is obtained. The above mentioned consent given by Party A to Party B is relied on its sole and
only decision right At the time of making such decision, Party A can take into consideration, including but not limited to the economic position of the sublessee, the purpose of use of the Premises by the sublessee and other subjective or objective
factor that Party A should consider. 
  
 If Party A has determined
to give Party B the written consent mentioned above, Party B shall guarantee that the sublessee agrees to observe and perform all terms and conditions under this Contract, and agrees to sign a leasing contract under which the content, and form is
consistent with this Contract, and to undertake the none of any default behavior will occur under the leasing contract. 
  
 12-24. Supplement to Article 9 of this Contract as follows: 
  
 At any time during the Lease Term, if Party A resolved to (Board Resolution to be provided by Party A shall be considered as a valid proof) to sell,
further construct, reconstruct, demolish, refit or decorate the Premises or any part of it, including the Premises, Party A shall have the right to early terminate the Lease Term by giving six months’ prior written notice to Party B and this
Contract shall be terminated on the expiration of notice specified in such written notice but without prejudice to any right and remedy of either party against the other party in respect of any breach committed prior to the expiration of such
written notice. 
  
 Party B shall be precluded from claiming any
deduction of Rent, compensation or any other remedy as a result of such early termination of the Lease Term and termination of any options of Party B. 
  
 12-25. In respect of the relevant insurance matter in the Lease Term of the Premises, both parties have made detailed agreement as follows: 
  
 During the Lease Term, Party B shall purchase at its own cost from a
reputable insurance company and maintain all insurance that Party A is satisfied with for all the 

  

 Exhibit 10.18 
 Translation 
  

 
risks of the Premises. Party A is entitled to require Party B to designate Party A as the beneficiary or its joint beneficiary of such insurances;

  
 The coverage of such insurance shall be in a reasonable amount
prescribed by Party A, and not lower than RMB3 million. It shall be clearly listed on the insurance policy that the terms for the insurance liability shall not be cancelled, revised or restricted without the prior written consent of Party A;

  
 Party B undertakes, upon Party A’s request given from
time to time, Party B shall provide the insurance policy, the latest payment receipt of insurance premium and a certificate issued by the insurance company to prove that the insurance policy is fully paid up and is valid and subsisting in all
respects. 
  
 Party B shall not do, cause to be done any act,
matter or thing whereby it will void the fire insurance or other insurance (including third party claim arising out of the loss or damage of the insurance) of the Premises or any part of it. Party B shall not do or allow others to do any act, matter
or thing whereby the rate of premium of the insurance may increased; 
  
 If as a result of any act, deed, matter or thing done, the premium on any such policy or policies of insurance shall be increased due to Party B’s fault, Party A shall be entitled without prejudice to any other right and remedy
hereunder to recover from Party B the amount of any such increase. 
  
 12-26. If
Party A has installed any facility or machine of central air-conditioning in the Premises, Party B shall carefully and reasonably use or adjust such facility or machine. Party A shall be responsible to provide regular maintenance service upon
reasonable request of Party B, the cost of which is already included in the air conditioning charges and management fee. 
  
 12-27. Party B shall allow Party A to bring any prospective lessee or relevant people to view the Premises before the Lease Term expires, or within the last 3 months
before the early termination of this Contract at all reasonable times to view the Premises as stipulated in this Contract, except that both parties mutually agree to continue leasing the Premises. 
  
 12-28. Party B hereby expressly agrees and declares, except that any of the following
situation is caused directly by fault of Party A, Party A shall not be liable to Party B or any other person whomsoever: 
  
 In respect of any loss or damage to any person or property or for any disruption or inconvenience caused to or sustained by Party B or any other person
caused by or through or in any way owing to any defect or breakdown of facility or other facilities of elevator, escalator, fire, security equipment, air conditioning system of the Premises, or any failure, malfunction, suspension of electricity,
water supply or telephone communication or cease to operate, or due to flood, or escape or spread of fire, smoke, fume or any other substance, or due to rain or other water leakage in the Premises or any Party of the Premises, or due to the activity
of rate, termites, roaches or other pests in the Premises, or due to stealing or robbery of the Premises. 
  

 Exhibit 10.18 
 Translation 
  

 12-29. Both parties agree: 
  

1. Party A shall not be liable for the security or safekeeping of the property in the Premises; 
  
 2. The security guards, management staff, machine of any kind or electronic
system for prevention of crime of whatever nature(if any) provided by Party A for the property or the Premiese, it shall not create any obligation on Party A as to the safe keeping or security of the Premises or the property inside the Premiese. The
responsibility for the safe keeping or security of the same shall at all times rest with Party B; 
  
 3. Party B shall not, for any security reason, deduct or stop payment of Rent or other fees it shall pay in accordance with this Contract; 
  
 4. Party A owes no duty, unless it has not taken reasonable action to repair
or remedy, or reasonably request the management office to repair or remedy, within a reasonable period of time after Party A receives the written notification issued by Party B, in respect of any defect or lack of repair of the roof, main structure,
wall, water pipe passage, cables and wiring, other public facilities and common area places of the Premises; 
  
 5. If at any time, the air conditioning service needs repair, maintenance or examination and thereby cease to operate beyond the control of Party A,,
Party A shall not be liable to compensate Party B or waive or reduce the Rent, Management charges, Air-conditioning Charges or other charges howsoever. 
  
 12-30. Party B hereby expressly agrees and declares: 
  
 Without prejudice to the rights of Party B to initiate legal proceedings against Party A for its breach, non-observance or non-performance of this
Contract or to deduct from the Deposit paid by Party B in accordance with Article 12-7 hereof, damages for loss or damage arising out of Party A’s breach, non-observance or non-performance of this Contract, Party B is entitled at any time upon
the occurrence of the following events to legally re-enter and re-possess the Premises or any part thereof whereupon this Contract shall forthwith be terminated. The aforesaid events are: 
  
 (1) Party B fails to pay the Rent, Air Conditioning Charges and Management
Fee, other fees or failure to pay to the relevant governmental departments all the taxes, within 14 days after its respective due date that Party B shall pay in accordance with the provision of this Contract (whether or not a formal demand has been
made); 
  
 (2) Party B fails to or because of latches, comply with
and perform any agreement, provision, terms, conditions that Party B shall comply and perform in this Contract; 
  
 (3) Party B suffers bankruptch or liquidation procedures (save and except with the approval of Party A, for the purposes of merger and reconstruction);

  
 (4) Any person brings a petition to court for liquidation of
Party B and the court accepts such petition; 
  
 (5) The Premises
or any property of Party B is being [ ] for the enforcement of the court judgment ; 
  

 Exhibit 10.18 
 Translation 
  

 (6) Party B suspends its business, terminates or indicates that it will suspend or terminate its
business; 
  
 (7) Event or litigation, same or similar with what
mentioned above in items (1) to (6), occur in any area that has jurisdiction over Party B. 
  
 12-31. Both parties hereby irrevocably agree: 
  
 Written notification issued by Party A to Party B to discharge or early terminate this Contract in accordance with the stipulations herein, indicates that Party A shall exercise its right conferred by this Contract to
early re-enter the Premises, and this constitute the Party A has already fully and adequately exercise such rights. Party A is not required to actually entering the Premises as the indication of exercising such right. 
  
 12-32. During the Lease Term, without the consent of Party A, if Party B unilaterally
terminates this Contract, the prepaid Rent shall not be returned. If the prepaid rent is insufficient to compensate the loss of Party A, Party B shall be liable for all losses and damages and all fees and expenses of Party A due to the vacancy of
the Premises during the period from early termination to the expiry of the Lease Term (including all legal costs). Party A is entitled to claim such loss, damage, expense and fees as debt from Party B. 
  
 12-33. Party B shall undertake all expenses and fees (including legal fees) occurred when
Party A demands Party B to pay Rent and/or other fees Party B shall pay (if Party A decides to demand Party B), and all expense and fees occurred when Party A exercises any other right pursuant to the terms in this Contract. Party A is entitled to
claim Party B for such expense and fees as debt. 
  
 12-34. Party A’s
acceptance of rent paid by Party B shall not be deemed as a wavier by Party A of its right to proceed against Party B in respect of any breach, non-observance or non-performance by Party B of any of the agreements, stipulations, terms and conditions
herein contained 
  
 12-35. If Party B breaches any payment responsibilities, or
unable to observe, perform any of the agreements, stipulations, terms and regulations herein contained, Party A shall have the right to terminate the supply of water, electricity or other services of the Premises by giving prior written notice, and
take any other measure and action as Party A deems fit until Party B has remedy the aforesaid breach, non-observance, non-performance and Party B has paid all the fees aroused thereby (including the reconnection fee for restoring the water and
electricity supply). The right of Party A conferred by this term, is supplementary to any other right and compensation right under this Contract, provided that any other right and compensation right of Party A pursuant to the terms in this Contract
shall not be impaired. 
  
 12-36. Party A’s once or several condoning,
excusing, overlooking of any breach, non-observance or non-performance by Party B of any responsibilities contained herein shall not operate as a waiver of Party A’s rights hereunder in respect of any continuing or subsequent breach,
non-observance or non-performance behavior by Party B, or so as to defeat or affect in any way the rights and remedies of Party A 

  

 Exhibit 10.18 
 Translation 
  

 
hereunder in respect of any such continuing or subsequent breach and no waiver by Party A shall be inferred from or implied by anything done or omitted by
Party A unless expressed in writing. 
  
 12-37. Any consent given by Party A to
Party B constitutes its consent to one particular matter toward Party B, shall not operate as a waiver of right to claim or to exempt from the execution of any term of this Contract, it shall not be understood as Party A waive the requirement to
seek its consent in a similar matter in the future, except that Party A expresses as such in writing. 
  
 12-38. Both parties mutually agree, during the Lease Term: 
  
 (1) Party B agrees, after Party A or its agent issues written notification to Party B, Party A or its agent to enter the Premises to test the electrical wirings at an appointed or specified time; 
  
 (2) Party B shall observe and comply with the rules and provisions adopted by
Party A or the management office from time to time; Party B shall not do or cause any action, deed, event or matter breaking the relevant rules and provisions frequently established by Party A or the management office, including but not limited to
any term or provision in any supplementary usage convention (whether or not such supplementary usage convention is signed before or after signing of this Contract); 
  
 (3) Party B shall be responsible to remove the rubbish and wastes of the Premises and disposed it to the place specified by
Party A or the management office; 
  
 (4) Provided that Party A or
the management office permits, Party B is entitled to display the name of Party B on the directory (if any) of the property, using the font specified by Party A. Such font shall be arranged, produced and displayed by Party A exclusively for Party B,
and the relevant expenses shall be undertaken by Party B; 
  
 (5)
Party B is entitled to display its name at its own cost in the place specified by Party A or the management office, in a method permitted by Party A or the management office; 
  
 (6) If Party B carries out projects of installing main electrical wirings, air conditioning, fire control system, service
pipe and drainpipe, etc. it shall employ the contractor specified by Party A in writing; 
  
 (7) Party B shall not do anything in the Premises that is likely to interfere with Party A, owner of other premises, other lessees and users in the property or in any adjoining or neighbouring premises. If Party B
violates the provision mentioned above after the second written warning issued by Party A, Party A shall deem it as a breach of this Contract. Without prejudice to any other rights and remedy of Party A, Party A shall be entitled to terminate this
Contract unilaterally under this contract and to re-enter the Premises hereunder. 
  

 Exhibit 10.18 
 Translation 
  

 (8) Party B shall not do any business beyond the scope of usage listed in Appendix II of this
Contract, provided that Party B shall apply on its own for the approvals, license, permit for doing business in the Premises, Party B shall not use the Premises for illegal or immoral use, Party B shall not perform any activity that has harmful
effect on the reputation of Party A or the property; 
  
 (9) Party
B shall not carry out any manufacturing, production or processing activities of any goods or merchandise on the Premises; 
  
 (10) Party B shall not keep or store any weapon, ammunition, saltpeter, coal oil or other explosive, or combustible substances or dangerous prohibited
goods at any time inside the Premises; 
  
 (11) Party B shall not
cause or allow gas or odor or noxious smells which shall in the sole opinion of Party A be offensive or unusual, poisonous or harmful, to generate, infiltrate out, leak out in the Premises; 
  
 (12) Party B shall not lay, install, erect or append any electrical wiring,
cable or other thing or stuff in any entrance, stair, platform, alleyway, hall, lobby or other public area in the Premises; 
  
 (13) Party B shall not prepare or eat any food in the Premises, and shall not use apparatus to cook or heat up any food (except in the mini pantry in
normal office building); 
  
 (14) Party B shall not keep any
animal or pet in the Premises; 
  
 (15) Party B shall at its own
cost adopt all steps and preventive measures as required by Party A so as to prevent the breeding of termites, mouse, cockroaches or other pests or parasites in any part of the Premises; 
  
 (16) Unless otherwise prescribed in the terms of this Contract, Party B shall not assign, sublease or sublet the Premises or
any part of it. Party B shall not permit or allow any arrangement or transaction, to cause a third Party acquires the right to use, occupy or share the Premises or any part of it, whether or not such third Party pays the rent or other cost
therefore; 
  
 (17) When it occurs that Party B assigns, subleases
or sublets the Premises as mentioned in the item (16) above (whether or not Party B receives money or other form as consideration), without prejudice of any other right and remedy of Party A, this Contract shall absolutely be terminated. Party B
shall disfurnish and vacate the Premises immediately; 
  
 (18)
Party B shall not install any antenna, receiver, pipeline, adjunct, adumbral thing, awning, any other fittings and attachments of any type or nature; 
  
 (19) Before Party B acquires the written consent of Party A, except for directing the address and location of the office, it shall not for any purpose use
the name 

  

 Exhibit 10.18 
 Translation 
  

 
and marks or such name and picture of the marks or declaration and painting of such name and marks of such Premises or such property ; 
  
 (20) Party B shall not hawk or tout in any place outside of the property and
inside of the Premises; 
  
 (21) In case of loading and unloading
goods, Party B shall use the designated loading and unloading area, entrance and goods elevator as stipulated by Party A or the management office, and only during the prescribed time to handle the loading and unloading of goods; 
  
 (22) Party B shall not use client elevator or escalator for the use of
conveying goods at any situation at any time; 
  
 (23) Party B
shall allow Party A to post the leasing advertisement of the Premises in public places of the Premises that Party A considers as appropriate, within 3 months before the expiration of the Lease Term, and Party B shall not blot out such poster;

  
 (24) Party B shall not paint, spray-paint, use or stick any
thing or any stuff to the Premises, window frames, glasses or exterior wall; 
  
 (25) Party B shall not destroy, damage or marked any part of the structure of the Premises, or any decoration of the public area, stairs, elevators, escalators of the property, including any tree, plant and bush of
the property; 
  
 (26) Not without the prior written consent of
Party A to alter the locs, bolts and fittings on the entrance doors to the said Premises; 
  
 (27) Party B shall not install any object or equipment exceeding the weight of which any part of the original floor of the Premises is designed to support (i.e. not exceeding 1.2 kilo Newton (KN)/square meter for
permanent load and 3.0 KN/square meter for temporary load) in the Premises (the office area, excluding aisles). 
  
 (28) After signing this Contract, Party B shall, in accordance with the local relevant provisions of law and regulations, entrust Party A or its agent to
handle the registration and filing with the local real estate management department; 
  
 (29) When Party B for any reason moves out from the Premises at any time during Lease Term or when Lease Term expires, if Party B has left any decoration, furniture, object, material, equipment or any other article in
the Premiese, it is assumed that Party B abandons such articles, and Party A is entitled to dispose such articles in any way, while Party B shall not disagree or request Party A to claim for compensation; meanwhile, Party A is entitled to claim
Party B for all expenses for removing, cleaning, disposing the aforesaid articles, or deduct such expenses from the Deposit paid by Party B first and then return the balance to Party B, and if the Deposit paid by Party B is insufficient to offset
such expenses, Party A is entitled to continue claiming Party B for insufficient amount; 
  

 Exhibit 10.18 
 Translation 
  

 (30) Party B shall not block any entrance, stair, platform, passage, escalator, elevator, lobbyl or
other public are in the property, or pile up any case, box, rubbish or other obstacle of any other type or nature; 
  
 (31) When Party A makes the requests, Party B shall immediately pay Party A all the expenses incurred as a result for cleaning up and remove as the water
pipes, canals and pipelines is broken, blocked and damaged due to inappropriate or careless use of Party B; 
  
 (32) Party B shall pay Party A the expense for repairing the damages of any part of the public area of the property caused by Party B. 
  
 12-39. Party A undertakes with Party B as follow: 
  
 (1) Provided that Party B pays the rent in the time and method prescribed in
this Contract and observe and perform all the terms, stipulations, terms and conditions on the part to be observed and performed by Party B, Party B is entitled to hold and enjoy the Premises during the Lease Term without any interruption by Party A
or any person lawfully claiming under or in trust for Party A; 
  
 (2) Pay all the taxes and expenses payable to the relevant government department to Party A in accordance with the laws, regulations and local provisions in respect of the Premises; 
  
 (3) Make every effort to procure the management office to maintain in good
and workable condition of the roof, main structure, wall, water pipes passage and electrical wirings and cables of the Premises; 
  
 (4) Make every effort to procure the management office to maintain a clean and proper condition of public area in the property; 
  
 (5) Make every effort to procure the management office to maintain an
appropriate and functional condition of any elevator, escalator, fire prevention and security equipment, air conditioning facility and other appliances in the property; 
  
 (6) Procure the management office to provide air conditioning service for the Premises. The schedule of the air conditioning
service supply is listed in Appendix IV of this Contract. If Party B requests Party A to provide air conditioning service beyond the period mentioned above, it shall apply to the management office in advance and pay corresponding fees; 

 
 After Party A receives reasonable notification of Party B who requests air
conditioning service beyond the service period of air conditioning, Party A shall make every effort to procure the management office to provide Party B with such air conditioning service. 
  

 Exhibit 10.18 
 Translation 
  

 12-40. Since the leasing of the Premises is valid only to Party B designated in this Contract, except with the
written consent of Party A, the following conducts and events shall be deemed as default of this Contract: 
  
 a. In the case of Party B being a corporation leasing such Premises, , the occurrence of Party B being acquired, reconstruct, merge or liquidate;

  
 b. The giving by Party B a Power of Attorney whereby the
Attorney obtains the right to use, posses, occupy or enjoy the Preemies or any party thereof 
  
 c. The change of Party B’s business name without the prior written consent of Party A as stipulated in the provisions of this Contract. 
  
 12-41. At any time during the Lease Term, Party A is entitled to sell the Premises without informing Party B. In case Party A needs to
mortgage the Premises shall not require to notify Party B in writing. The parties may agree to dispose of the mortgaged Premises without consulting the opinion of Party B for purchasing the Premises. Party B hereby expressly declares that Party B
waives any first right of refusal to purchase the Premises under Articles 8-4 and 11-1 of this Contract . 
  
 If Party A shall enter into contract with a third party to see the Premises during the Lease Term, Party A shall provide in the sale contract of the Premises or other contract for transfer of the property right of the
Premises that the assignee of the Premises shall undertake to continue to comply with this Contract. Party B agrees that only this assignee is entitled to continue exercising and carrying out all rights and obligation of Party A pursuant to this
Contract, Party A shall not be liable to Party B for any compensation. 
  
 12-42.
Party A reserves the right to change, repair and temporarily close the doors, windows, electric appliances, wirings and cables, water pipe passages, escalators, fire protection, security system, air conditioning and other facilities of the Premises,
without the consent of Party B during the Lease Term, and also the right to alter the overall structure, layout and arrangement of the public place of the property. When Party A exercises the right to change, repair, close and alter as mentioned
above, causing any impact and loss to Party B, Party A shall not be liable to Party B for any compensation or remedies. 
  
 12-43. Party A reserves the right to name the property, and Party A is entitled to change the name of the property from time to time by giving to Party B not less than 3
months notice, and shall not be liable to Party B or any other people for any compensation. 
  
 12-44. The notarization fee, stamp duty, registration fee related to this Contract shall be undertaken by both parties respectively. Any charges that have not been stipulated by law shall be borne by both parties in
equal share. 
  
 12-45. Party A and the management office reserve the right to
establish, invite or amend, adopt, abolish any operation and management rules and provisions considered as necessary for managing and maintaining the property as a first-class complex building. Such rules and systems shall come into effect once
Party A issues written notification to Party B. 
  
 The rules and
systems mentioned above, as supplement to this Contract, shall not derogate efficacy of this Contract in any aspect. If there are different interpretations 

  

 Exhibit 10.18 
 Translation 
  

 
between the rules and provisions mentioned above and this Contract, the terms of this Contract shall prevail. 
  
 Party A shall not be liable to all the loss and damage arising from non
performance of the rules and provisions mentioned above, or a third Party not observing such rules and provisions. 
  
 12-46. Any document or notification that shall be sent to Party B pursuant to this Contract, if with prepaid postage, sent to the address of Party B listed in Appendix
III of this Contract or any other address notified by Party B in writing, shall be deemed as having been received by Party B. 
  
 12-47. Any document or notification that shall be sent to Party A pursuant to this Contract, if with prepaid postage, sent to the address of Party A listed in Appendix
III of this Contract or any other address notified by Party A in writing, shall be deemed as having been received by Party A. 
  
 12-48. Any notification sent with prepaid postage, after 3 working days, shall be deemed as having been received by the recipient. The receipt for registered mail issued
by the post office can be valid evidence to prove that the notification has been sent to the recipient. 
  
 12-49. Both parties shall bear its own legal costs and expenses and hire their respective legal representative If Party B has not retained any lawyer, and this Contract is amended through negotiation of both parties
after Party A submits the first draft to Party B, then Party B shall undertake half of the legal expense and fees of Party A. 
  
 12-50. This Contract constitutes the entire agreements between the parties and supersede all prior agreements, written or verbal, between the parties relating to all the
terms under this Contract. 
  
 12-51. In respect of any matters not covered by
this Contract, Party A and Party B may negotiate and make further supplemental agreement. Such supplemental agreement shall carry the same legal effect as this Contract and shall be constituted as an integral part of this Contract. 
  
 12-52. Law of the People’s Republic of China shall apply to and govern the
establishment, efficacy, interpretation, fulfillment and settlement of conflicts of this Contract. 
  
 12-53. The content listed in Appendix IV of this Contract is the supplement and amendment made by both parties to this Contract in respect of the content of relevant terms of this Contract, confirmed and agreed by
both parties to this Contract, and shall form an integral part of this Contract. 
  
 12-54. Any dispute arising out of this Contract or arising from this Contract, shall be resolved through consultation between the parties, failing which either party may institute legal proceedings in a People’s court where the
Premises situate. 
  
 12-55. Any heading or index shall serve as guide and shall
not constitute a part of this Contract. The interpretation of this Contract shall not be affected or restricted by any such heading or index. 
  

 Exhibit 10.18 
 Translation 
  

 12-56. Amendment to the Article 11-2 of this Contract as follows: 
  
 This Contract is signed by the legal representative or authorized
representative of both parties, and it shall come into effect through notarization by Shanghai Notarization Office. 
  
 After this Contract is notarized, Party B shall, in accordance with the provisions of relevant law and regulations, entrust Party A or its agent to handle
the registration and filing formalities of this Contract with the local real estate management department and obtains the filing certificate for real estate leasing; on the occasion, Party B has the duty to provide Party A with all necessary
documents for going through the procedure mentioned above and provide necessary assistance according to the request of Party A.Subscription and Purchase Agreement dated April 2, 2004

 Exhibit 10.19 
  
 THIS SUBSCRIPTION AND PURCHASE AGREEMENT (this “Agreement”) is made on April 2, 2004 
  
 AMONG: 
  

	(1)	OBJECT SOFTWARE LIMITED, a company duly incorporated and validly existing under the laws of the British Virgin Islands whose registered address is P.O. Box 71, Craigmuir Chamber,
Road Town, Tortola, British Virgin Islands (the “Company”); 

  

	(2)	OBJECT SOFTWARE (BEIJING) CO., LTD., a company duly established and validly existing under the laws of the People’s Republic of China whose principal business address is 3rd
Floor, Xingya Mansion, No.63 North Avenue, 4th West Ring Road, Haidian District, Beijing, China zip 100089 (the “PRC Subsidiary”); 

  

	(3)	THE9 LIMITED, a company duly incorporated and validly existing under the laws of Cayman Islands whose principal business address is 30/F CITIC Square, No. 1168 Nanjing Road (w),
Shanghai 200041, People’s Republic of China (the “Investor”); 

  

	(4)	each of the Persons whose names and addresses are listed on Part A of Schedule 2 hereto (each, a “Founder” and collectively, the “Founders”);

  

	(5)	LAI KUI MING, PHILIP whose address is listed on Part D of Schedule 2 hereto (“Lai”); and 

  

	(6)	each of the Persons whose names and addresses are listed on Part C of Schedule 2 hereto (each, a “Selling Shareholder” and collectively, the “Selling
Shareholders” which expression when used in relation to the Conditional Investment shall include Lai). 

  
 WHEREAS: 
  

	(A)	The Company is a private limited liability company organized and existing under the laws of the British Virgin Islands. Further particulars of the Company are set forth in Part A of
Schedule 3. 

  

	(B)	The Selling Shareholders are the beneficial and registered owners of all of the issued and outstanding shares in the capital of the Company. 

  

	(C)	The Company owns the entire registered capital of each of the Subsidiaries. Further particulars of each of the Subsidiaries are set forth in Part B of Schedule 3.

  

	(D)	The Company, the PRC Subsidiary and the Founders desire that the Company allot and issue to the Investor, and the Investor desires to subscribe for and purchase, Subscribed Shares
of the Company upon the terms and subject to the conditions set forth herein. 

  

 1 

	(E)	The Selling Shareholders desire to sell, and the Investor desires to purchase First Investment Sale Shares owned by the Selling Shareholders upon the terms and subject to the
conditions set forth herein. 

  

	(F)	The Selling Shareholders desire, upon the Investor’s completion of its IPO, to sell to the Investor the Conditional Investment Shares in return for cash and/or ordinary shares
of the Investor, upon the terms and subject to the conditions set forth herein. 

  

	(G)	As the Company will be applying a portion of consideration to be received by it under this Agreement to finance the operation of the PRC Subsidiary, the PRC Subsidiary is requested
by the Investor to join as a party to this Agreement and in consideration of the willingness of the Investor to enter into this Agreement, which would otherwise not happen, and in further consideration of the finance provided by the Company
aforesaid, the PRC Subsidiary agrees to enter into this Agreement. 

  
 NOW IT IS HEREBY AGREED as follows: 
  

	1.	INTERPRETATION 

  

	1.1	In this Agreement, unless the context requires otherwise: 

  

			
	 “Affiliate”
	 	of a Person (the “Subject Person”) means (i) in the case of a Subject Person other than a natural person, any other Person that directly or indirectly controls, is controlled by or
is under common control with the Subject Person, and (ii) in the case of a Subject Person that is a natural person, the spouse or any child of the Subject Person. For purpose of this definition, “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, and includes without limitation (i) ownership directly or indirectly
of 50% or more of the shares in issue or other equity interests of such Person, (ii) ownership directly or indirectly of 50% or more of the voting power of such Person or (iii) the power directly or indirectly to appoint a majority of the members of
the board of directors or similar governing body of such Person, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. With respect to any Person that is owned by an investment fund,
“Affiliate” shall also include the general partners, limited partners and fund managers of such Person.
		
	 “Average Trading Price”
	 	means the volume weighted average of the per share trading prices of the Investor’s ordinary shares (subject to appropriate adjustment for share splits, reverse share splits,
recapitalizations and the like), in

  

 2 

			
	 	 	the form of ADS or otherwise, on the NASDAQ Stock Market, during the 30 consecutive trading days ending on and including the date that is the 30th trading day after the date on which the
certification of the independent party referred to in Clause 2.2(e)(i) becomes available.
		
	 “Basic Documents”
	 	means this Agreement, the Shareholders Agreement, the Restated Articles.
		
	 “Board”
	 	means the board of directors of the Company.
		
	 “Charter Documents”
	 	means, collectively, the Memorandum of Association and Articles of Association of the Company.
		
	 “Collective Warranties”
	 	means the representations and undertakings of the Company, the PRC Subsidiary and the Founders set forth in Schedule 4.
		
	 “Commercial Launch”
	 	means the commercial launch of FODO game by the Company which results in recognition of revenue in the financial statement of the Company from FODO in accordance with U.S. GAAP; provided,
however, the Commercial Launch shall not occur until the number of average weekly Peak Concurrent Users reaches at least 50,000; provided, further, the Commercial Launch must take place once the number of average weekly Peak Concurrent Users reaches
100,000 but not sooner than two months after the commencement of open beta testing.
		
	 “Commercial Launch Date”
	 	means the date on which Commercial Launch commences.
		
	 “Conditional Investment”
	 	means the completion of the sale and purchase of the Conditional Investment Shares according to the terms of this Agreement and the Share Purchase Agreement.
		
	 “Conditional Investment Date”
	 	means the date and time at which Conditional Investment takes place.
		
	 “Conditional Investment Purchase Price”
	 	means the consideration for the sale of the Conditional Investment Shares as set forth in Clause 2.2.
		
	 “Conditional Investment Shares”
	 	means all of the Ordinary Shares held by the Selling Shareholders and Lai at the Conditional Investment Date which, together with the First Investment Sale Shares and the Subscribed Shares,
shall comprise the entire issued share capital of the Company.

  

 3 

			
		
	 “Daily Average Paying Concurrent Users”
	 	means the daily average number of Paying Game Players simultaneously logged on to the game servers hosting any of the Key Games, calculated every 15 minutes during a calendar
day.
		
	 “Disclosure Letter”
	 	means the letter of even date herewith from the Company to the Investor in the approved terms.
		
	 “Encumbrance”
	 	means (i) any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, deed of trust, title retention, security interest or other encumbrance of any kind
securing, or conferring any priority of payment in respect of, any obligation of any Person, including without limitation any right granted by a transaction which, in legal terms, is not the granting of security but which has an economic or
financial effect similar to the granting of security under applicable law, (ii) any lease, sub-lease, occupancy agreement, easement or covenant granting a right of use or occupancy to any Person, (iii) any proxy, power of attorney, voting trust
agreement, interest, option, right of first offer, negotiation or refusal or transfer restriction in favour of any Person and (iv) any adverse claim as to title, possession or use.
		
	 “Equity Securities”
	 	means, with respect to any Person, such Person’s capital stock, membership interests, partnership interests, registered capital, joint venture or other ownership interests (including,
without limitation, in the case of the Company, its Ordinary Shares) 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, joint venture or other ownership interests (whether or not such derivative securities are issued by such Person).
		
	 “FODO”
	 	means the online game entitled Fate of the Dragon Online developed by the PRC Subsidiary.
		
	 “First Investment”
	 	means the completion of the (i) the subscription for and issuance of the Subscribed Shares and (ii) the sales and the purchase of the First Investment Sale Shares according to the terms of
this Agreement.

  

 4 

			
		
	 “First Investment Date”
	 	means April 16, 2004.
		
	 “First Investment Sale Shares”
	 	means the Ordinary Shares to be purchased by the Investor upon First Investment pursuant to Clause 2.1.
		
	 “Fully-Diluted Basis”
	 	means, with respect to the Investor, the basis of calculation of the entire share capital of the Investor taking into account (1) the issued and outstanding ordinary shares, including those
represented by ADSs, (2) the ordinary shares into which the issued and outstanding securities of the Investor would be convertible on an as-converted basis, including the authorized but unissued ordinary shares issuable pursuant to any stock option
plan or similar equity incentive plan of the Investor, and where applicable, (3) the Investor Shares issued pursuant to this Agreement and the Share Purchase Agreement.
		
	 “Governmental Authority”
	 	means any government or political subdivision thereof; any department, agency, board, bureau, commission or other instrumentality of any government or political subdivision thereof; any court
or arbitral tribunal; and the governing body of any securities exchange or automated trading system.
		
	 “Hong Kong”
	 	means the Hong Kong Special Administrative Region of the People’s Republic of China.
		
	 “Investor Shares”
	 	means the ordinary shares, in the capital of the Investor having a par value of such an amount as they shall have at the Conditional Investment Date.
		
	 “Investor Warranties”
	 	means the representations, warranties and undertakings of the Investor set forth in Schedule 6.
		
	 “IPO”
	 	means an initial public offering of the Investor’s ordinary shares, in the form of American Depositary Shares (“ADSs”) or otherwise, on the NASDAQ Stock
Market.
		
	 “Key Games”
	 	means FODO, the World of Qin and World of Qin 2 online games developed by the Company or the PRC Subsidiary (each, a “Key Game” and collectively, the “Key
Games”).
		
	 “Latham & Watkins”
	 	means Latham & Watkins LLP, of 20th Floor, Standard
Chartered Bank Building, 4 Des Voeux Road, Central, Hong Kong, international counsel to the Investor.

  

 5 

			
		
	 “LIBOR”
	 	means the annual London Interbank Offered Rate which is the rate of interest at which banks borrow funds from other banks, in marketable size, in the London interbank market.
		
	 “Ordinary Shares”
	 	means the ordinary shares, par value US$1.00 per share, in the capital of the Company.
		
	 “Ownership”
	 	of any Person at any time means the percentage owned by any Person of all Ordinary Shares in issue at such time on a fully diluted basis, assuming the exercise, conversion or exchange of all
options, warrants and other securities exercisable for or convertible or exchangeable into Ordinary Shares, regardless of whether such options, warrants or other securities are currently exercisable, convertible or exchangeable at such
time.
		
	 “Parties”
	 	means the Company, the PRC Subsidiary, the Investor, the Founders and the Selling Shareholders, and “Party” means any of them.
		
	 “Paying Game Players”
	 	means those players who pay in full for the game playing time used by them.
		
	 “Peak Concurrent User”
	 	means the highest number of game players simultaneously logged on to the game servers hosting FODO at any particular time during a 15-minute period.
		
	 “Person”
	 	means any individual, firm, company, Governmental Authority, joint venture, association, partnership or other entity (whether or not having separate legal personality).
		
	 “Related Party”
	 	means (i) any shareholder of the Company, (ii) any director of the Company, (iii) any officer of the Company, (iv) any Relative of a shareholder, director or officer of the Company, (v) any
Person in which any shareholder, director or officer of the Company has any interest, other than a passive shareholding of less than 5% in a publicly listed company, and (vi) any other Affiliate of the Company or of a shareholder or director of the
Company.
		
	 “Relative”
	 	of a natural Person means any spouse, parent, grandparent, child, grandchild or sibling of such Person and any other Person who is related to such person within three
degrees.

  

 6 

			
		
	 “Restated Articles”
	 	means the amended and restated Memorandum and Articles of Association of the Company, in the form of Exhibit B, to be adopted by the Company on or prior to the First Investment
Date.
		
	 “Selling Shareholders Warranties”
	 	means the representations and undertakings of the Company and the Selling Shareholders set forth in Schedule 5.
		
	 “Shareholders”
	 	means the Persons set forth in Part A of Schedule 3, who are all of the shareholders of the Company as at the date hereof.
		
	 “Subscribed Shares”
	 	means the Ordinary Shares to be subscribed for by the Investor pursuant to Clause 2.1.
		
	 “Subsidiaries”
	 	means each of the Persons whose names and addresses are listed on Part B of Schedule 2 hereto.
		
	 “US$”
	 	means United States Dollars, the lawful currency of the United States of America.
		
	 “Warranties”
	 	means the Collective Warranties, the Selling Shareholder Warranties and the Investor Warranties.

  

	1.2	The following terms are defined in the indicated Clause or Schedule: 

  

			
	 “Company”
	 	Preamble
	 “Founder(s)”
	 	Preamble
	 “Indemnifying Persons”
	 	8.1
	 “Indemnified Persons”
	 	8.1
	 “Investor”
	 	Preamble
	 “PRC Subsidiary”
	 	Preamble
	 “Selling Shareholder(s)”
	 	Preamble
	 “Share Purchase Agreement”
	 	2.2(b)

  

	1.3	References herein to any Clause, Schedule or Exhibit is to such Clause of or Schedule or Exhibit to this Agreement unless the context otherwise requires. The Schedules and Exhibits
to this Agreement shall be deemed to form part of this Agreement. 

  

	1.4	References to a Party shall, where the context permits, include such Party’s respective successors, legal representatives and permitted assigns. 

  

	1.5	The headings are inserted for convenience only and shall not affect the construction of this Agreement. 

  

	1.6	Unless the context requires otherwise, words importing the singular include the plural and vice versa, and pronouns importing a gender include each of the masculine, feminine and
neuter genders. 

  

 7 

	1.7	A document expressed to be “in the approved terms” means a document the terms of which have been approved by or on behalf of the parties hereto and a copy of which has
been initialled for the purposes of identification by or on behalf of the Parties. 

  

	1.8	References to the knowledge, information, belief or awareness of any Person shall be deemed to include the knowledge, information, belief or awareness such Person would have if such
Person had made reasonable inquiries unless otherwise specifically qualified. 

  

	1.9	The words “directly or indirectly” mean directly, or indirectly through one or more intermediary persons or through contractual or other legal arrangements, and
“direct or indirect” have the correlative meanings. 

  

	1.10	In calculations of share numbers, (i) references to a “fully diluted basis” mean that the calculation should be made assuming that all outstanding options, warrants and
other Equity Securities convertible into or exercisable or exchangeable for ordinary shares (whether or not by their term then currently convertible, exercisable or exchangeable), have been so converted, exercised or exchanged, and (ii) references
to a “non-diluted basis” mean that the calculation should be made taking into account only ordinary shares then in issue. 

  

	2.	SUBSCRIPTION, SALE AND PURCHASE 

  

	2.1	First Investment 

  

	 	(a)	Upon the terms and subject to the conditions of this Agreement, the Investor hereby subscribes for, and the Company agrees to allot and issue to the Investor at First Investment,
the number of Ordinary Shares set forth opposite the Investor’s name on Schedule 1 hereto. 

  

	 	(b)	The consideration payable by the Investor for the Subscribed Shares shall be the amount set forth opposite the Investor’s name on Schedule 1 hereto, payable in the forms of (1)
a cash payment of US$1 million (the “Initial Consideration”) to be paid at the First Investment (i) US$0.3 million in US$ and (ii) US$0.7 million in Renminbi equivalent, and (2) an interest-free promissory note in the amount of US$2
million in favor of the Company (the “Note”), in the form set out in Exhibit E to this Agreement, subject to adjustment as provided for in Clause 7.2 below. 

  

	 	(c)	Upon the terms and subject to the conditions of this Agreement, each of the Selling Shareholders hereby agrees to sell and transfer to the Investor, and the Investor hereby agrees
to purchase from each of the Selling Shareholders at First Investment, the number of First Investment Sale Shares set forth opposite the Investor’s name on Schedule 1 hereto. 

  

	 	(d)	The consideration payable by the Investor to each of the Selling Shareholders for the First Investment Sale Shares shall be the amount set forth opposite each Selling
Shareholder’s name on Schedule 1 hereto, payable in the form of a cash payment in US$ at First Investment. 

  

 8 

	 	(e)	The sale by each of the Selling Shareholders as set forth in this Clause 2.1 shall be severally enforceable transaction in accordance with the terms of this Agreement. Each Selling
Shareholder’s obligations in respect of its sale as provided herein shall be several but not joint. The Investor may, at its sole election, exercise or enforce its rights against the Selling Shareholders, severally. 

  

	2.2	Conditional Investment  

  

	 	(a)	Upon the terms and subject to the conditions of this Agreement, the Selling Shareholders and Lai hereby agree to sell, assign, transfer, convey and deliver, or cause to be sold,
assigned, transferred, conveyed and delivered, to the Investor, and the Investor agrees to purchase, the Conditional Investment Shares at such Conditional Investment Purchase Price as determined in Clause 2.2(d). 

  

	 	(b)	The terms and conditions of the Conditional Investment shall be set forth in a definitive share purchase agreement (the “Share Purchase Agreement”) in substantially
the form attached hereto as Exhibit C, which shall be entered into, as soon as reasonably practicable, after the Investor notifies the Selling Shareholders that it is satisfied with the fulfillment of the conditions set forth in Clause 2.2(c)
and Clause 2.2(d), any of which, with the exception of Clause 2.2(d), may be expressly waived by the Investor; provided, however, that in the event that either or both of Lai and Chiu Pak Yue, Leo have become involved in the management
or daily operations of the Company or any of the Subsidiaries after the First Investment Date, either or both of them, as the case may be, shall be required to make the representations and warranties in Schedule 4 to the Share Purchase Agreement in
addition to other representations and warranties to be made by them therein; provided, further, that the Share Purchase Agreement shall be subject to further changes in the event that the condition set forth in Clause 2.2(c)(iii) has
not been satisfied unless the Investor has expressly waived such condition. 

  

	 	(c)	The Investor’s obligation to enter into the Share Purchase Agreement with the Company and the Selling Shareholders and Lai is subject to the fulfilment of the following
conditions: 

  

	 	(i)	FODO having its Commercial Launch by December 31, 2004; 

  

	 	(ii)	Since the First Investment Date, there having been no material adverse change in the business, operations, properties, financial position (including without limitation any material
increase in provisions) or condition of the Company or any of the Subsidiaries; and 

  

	 	(iii)	The completion of the disclosure letter to the Share Purchase Agreement by the Selling Shareholders and Lai. 

  

	 	(d)	The obligation of the Selling Shareholders and Lai to enter into the Share Purchase Agreement with the Investor is subject to the Investor’s completion of an IPO by December
31, 2004. 

  

 9 

	(e)	The Conditional Investment Purchase Price shall be determined as follows: 

  

	 	(i)	If, during the first six months after the Commercial Launch, the aggregate of the six-month average (and in respect of World of Qin 2, the average for the period from its
commercialization to the end of the six-month period aforesaid (the “Relevant Period”), provided that in the event the Relevant Period is less than a period of two calendar months, the Daily Average Paying Concurrent Users of World of Qin
2 shall not be taken into account in the calculation of such six-month average) of the Daily Average Paying Concurrent Users of each of the Key Games, as certified by an independent party (the “Certifying Party”) jointly selected by
the Company and the Investor, is at least One Hundred Thousand (100,000), then the Conditional Investment Purchase Price shall be Fifty Million Dollars (US$50,000,000); provided, however, if the proposed pricing of either FODO or the
World of Qin 2 game falls below RMB 0.38 per hour, the Company shall obtain the prior written approval of the Investor with respect to such pricing; provided further, that the issuance and pricing of any prepaid game monthly cards for either
FODO or the World of Qin 2 game, and any pricing change to the World of Qin game, shall require the Investor’s prior written approval; provided further that all prepaid game time cards and all prepaid game monthly cards (collectively the
“Prepaid Cards”) shall not include any free or discounted game playing time and no Prepaid Cards shall be issued for free or to distributors at less than 70% of the retail price and no distribution contracts shall last longer than
one year. Sale of Prepaid Cards in any other manner must be agreed by the Investor and the Company; 

  

	 	(ii)	the Conditional Investment Purchase Price as a whole shall be adjusted pro rata in accordance with the aggregate of the six-month average of the Daily Average Paying Concurrent
Users of each of the Key Games; and 

  

	 	(iii)	the Conditional Investment Purchase Price as a whole will neither be less than Twenty Million Dollars (US$20,000,000), nor higher than Seventy-Five Million Dollars (US$75,000,000).

  
 The Parties hereto agree that in the event that
the Company and the Investor have failed to agree on the selection of the Certifying Party within 30 days after the expiration of the first six months following the Commercial Launch, the Company shall immediately engage any of Ernst & Young,
Deloitte & Touche or KPMG Peat Marwick to be the Certifying Party. 
  

	(f)	The Conditional Investment Purchase Price will be paid by the Investor to the Selling Shareholders on the Conditional Investment Date as follows: 

  

	 	(i)	In the event that the Average Trading Price equals to or exceeds the per share price at the IPO, the Conditional Investment Purchase Price may be paid by the Investor to the Selling
Shareholders in the form of the Investor Shares, registered in the names of the Selling Shareholders or their respective designees equal to the quotient obtained by dividing the 

  

 10 

 Conditional Investment Purchase Price by the Average Trading Price; provided, that the Selling
Shareholders shall have right to request the Investor to pay up to 50% of the Conditional Investment Purchase Price in cash; and 
  

	 	(ii)	In the event that the Average Trading Price is below the per share price at the IPO, the Selling Shareholders shall have a right to request the Investor to pay the Purchase Price in
the form of cash or any combination of cash and the Investor Shares, but the Selling Shareholders as a whole shall in no event receive the Investor Shares constituting greater than 27% of the issued share capital of the Investor on the Fully-Diluted
Basis immediately after the issuance of such Investor Shares to the Selling Shareholders. For the avoidance of doubt, the Conditional Investment Purchase Price not otherwise paid in Investor Shares shall be paid in cash on the Conditional Investment
Date. 

  
 Notwithstanding the foregoing, none of
the Selling Shareholders or Lai shall be entitled to receive the Investor Shares that would exceed the total number of the Investor Shares held by either Incsight Limited or Bosma Limited calculated on the as-converted, Fully-Diluted Basis
immediately after the issuance of the Investor Shares to the Selling Shareholders, so long as Incsight Limited and Bosma Limited each hold greater than 12% of the issued Investor Shares. For purposes of this Clause 2.2(f)(ii), the Investor Shares
held by any of the Persons referred hereto shall include the Investor Shares and other securities of the Investor held by such Person and its Affiliates. 
  

	2.3	Closing of First Investment. The First Investment shall take place on or about the First Investment Date at the offices of Latham & Watkins LLP, 20/F, Standard Chartered
Bank Building, 4 Des Voeux Road, Central, Hong Kong. At the First Investment, 

  

	 	(a)	the Company shall 

  

	 	(i)	allot and issue the Subscribed Shares; 

  

	 	(ii)	give instructions to its registered agent in the British Virgin Islands to duly register the Subscribed Shares and the First Investment Sale Shares, in the name of the Investor, in
the Company’s register of members; and 

  

	 	(iii)	deliver to the Investor a share certificate for the Subscribed Shares, duly completed in the name of the Investor; 

  

	 	(b)	each of the Selling Shareholders shall sign an instrument of transfer in favor of the Investor in respect of, and deliver to the Investor, a share certificate in the name of the
Investor for, the number of the First Investment Sale Shares set forth opposite such Selling Shareholder’s name on Schedule 1 hereto; and 

  

	 	(c)	the Investor shall pay the Initial Consideration to the Company and the respective Selling Shareholders according to the wire transfer instructions provided to the Investor by the
Company and each of the Selling Shareholders not less than three business days before the First Investment; 

  

 11 

	 	(d)	the Investor shall deliver the duly executed Note to the Company; and 

  

	 	(e)	the Company, each Selling Shareholder and the Investor shall execute and deliver the Shareholders Agreement. 

  

	2.4	Within seven (7) U.S. banking days after the First Investment, 

  

	 	(a)	the Company shall deliver to the Investor a receipt for the consideration received from the Investor; 

  

	 	(b)	the Selling Shareholders shall deliver to the Investor a receipt for the First Investment consideration; and 

  

	 	(c)	the Company shall deliver to the Investor a certified copy of the updated register of members of the Company from the registered agent of the Company. 

  

	3.	CONDITIONS PRECEDENT TO FIRST INVESTMENT 

  

	3.1	The obligations of the Investor to complete the subscription for the Subscribed Shares, the purchase for the First Investment Sale Shares are subject to the fulfilment, prior to or
simultaneously at the First Investment Date (or at the time specified below), of the following conditions, any one or more of which may be waived by the Investor: 

  

	 	(a)	the Collective Warranties and the Selling Shareholder Warranties remaining true and correct on the First Investment Date; 

  

	 	(b)	the Company, the PRC Subsidiary, each of the Selling Shareholders and the Founders having performed and complied with all agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it or them on or before the First Investment Date; 

  

	 	(c)	the Company, the Selling Shareholders and the Founders having duly attended to and carried out all corporate procedures that are required under the laws of the respective
jurisdictions it is incorporated in connection with the Basic Documents and the transactions contemplated thereby, and the PRC Subsidiary having duly attended to and carried out all corporate procedures that are required under the respective
jurisdiction it is incorporated in connection with the Basic Documents and the transactions contemplated thereby, including without limitation: 

  

	 	(i)	approval by the Board of the execution, delivery and performance by the Company of the Basic Documents, the allotment and issuance of the Subscribed Shares and the other
transactions contemplated by the Basic Documents to which the Company is a party or which require approval by the Board; 

  

 12 

	 	(ii)	approval by the board of directors of the PRC Subsidiary of the execution, delivery and performance by the PRC Subsidiary of the Basic Documents to which it is a party or which
require approval by the board of directors of the PRC Subsidiary and of the other transactions contemplated by the Basic Documents; and 

  

	 	(iii)	adoption of the Restated Articles by all necessary action of the Board and the Shareholders and due filing of the Restated Articles with the relevant authority in the British Virgin
Islands; 

  

	 	(d)	the Company and each of the Subsidiaries having each appointed Moores Rowland Mazars as its auditor; 

  

	 	(e)	the Company or a Subsidiary of the Company having entered into service contracts with each of the individuals listed on Schedule 9 hereto, in the form attached hereto as
Exhibit D; 

  

	 	(f)	all consents and approvals of, notices to and filings or registrations with any Governmental Authority or any other Person required in connection with the execution, delivery or
performance by the Company, the Subsidiary, the Founders, the Selling Shareholders of the Basic Documents, the consummation of the transactions contemplated thereby, or pursuant to any contract binding on the Company, the PRC Subsidiary, the
Founders, the Selling Shareholders or to which the Company, the PRC Subsidiary, the Founders, the Selling Shareholders or its respective assets are subject or bound, having been duly obtained or made; 

  

	 	(g)	since December 31, 2003, there having been (i) no material adverse change in the business, operations, properties, financial position (including without limitation any material
increase in provisions) or condition of the Company or any of the Subsidiaries, (ii) no material change in any relevant laws, regulations or policies in any of the jurisdictions in which the Company or any of the Subsidiaries does business (whether
coming into effect prior to, on or after the First Investment Date) that, in the reasonable opinion of the Investor, materially and adversely affects or may materially and adversely affect the Company or any of the Subsidiaries;

  

	 	(h)	there being no Governmental Authority or other Person that has: 

  

	 	(i)	instituted or threatened any action or investigation to restrain, prohibit or otherwise challenge the subscription of the Subscribed Shares and the purchase of the First Investment
Sale Shares, by the Investor; 

  

	 	(ii)	threatened to take any action as a result of or in anticipation of the implementation of such subscription or purchase, as applicable; or 

  

	 	(iii)	proposed or enacted any statute or regulation which would prohibit, materially restrict or materially delay implementation of the subscription or the operation of the Company or any
of the Subsidiaries after the First Investment; 

  

 13 

	 	(i)	the Company having delivered to the Investor a certificate, dated the First Investment Date and signed by Mr. Richard Alan Wallis in his capacity as Chairman and Chief Executive
Officer of the Company, certifying that the conditions set forth in paragraphs (a) through (j) of this Clause 3.1 have been satisfied; 

  

	 	(j)	all corporate and other proceedings in connection with the transactions contemplated at or prior to the First Investment pursuant to the Basic Documents and all documents incident
thereto being reasonably satisfactory in form and substance to the Investor, and the Investor having received all such counterpart originals and certified or other copies of such documents as it may reasonably request, including without limitation:

  

	 	(i)	a copy of the Restated Articles certified by Mr. Richard Alan Wallis in his capacity as Chairman and Chief Executive Officer of the Company as a true, complete and correct copy duly
adopted by the Board and approved by the Shareholders of the Company and effective as of the First Investment Date; 

  

	 	(ii)	a copy of the resolutions of the Board and (to the extent required) the Shareholders, evidencing the adoption of the Restated Articles, the approval of the Basic Documents to which
the Company is a party or which require approval of the Shareholders, the allotment and issuance of the Subscribed Shares and the transfer of the First Investment Sale Shares, and the other matters contemplated hereby, certified by Mr. Richard Alan
Wallis in his capacity as Chairman and Chief Executive Officer to be true, complete and correct; and 

  

	 	(iii)	a copy of the register of members of the Company as at the First Investment Date, certified by Mr. Richard Alan Wallis in his capacity as Chairman and Chief Executive Officer of the
Company to be true, complete and correct; 

  

	 	(k)	the Company having delivered to the Investor copies certified by Mr. Richard Alan Wallis in his capacity as Chairman and Chief Executive Officer of the Company of all documents
requested by the Investor evidencing the receipt of approvals mentioned in Clause 3.1 (f) above; 

  

	 	(l)	the Investor having received an opinion from Conyers Dill & Pearman, British Virgin Islands counsel to the Company, dated as of the First Investment Date, covering the matters
specified in Schedule 7; 

  

	 	(m)	the Investor having received an opinion from Beijing Renjie Law Office, PRC counsel for the Company and the PRC Subsidiary, dated as of the First Investment Date, covering matters
specified in Schedule 8; 

  

	 	(n)	one nominee of the Investor having been duly elected to each of the Board and the board of directors of the Subsidiaries (except for Object Software B.V.), effective upon First
Investment, provided that the Investor shall have the right to appoint a Dutch national or a Dutch entity to the board of directors of Object Software B.V. at any time after the First Investment Date; 

  

 14 

	 	(o)	the Company having appointed the financial controller with professional accounting qualifications, nominated by the Investor; provided, that the Investor shall pay for the
salaries and benefits of such controller; and 

  

	 	(p)	the Selling Shareholders having tendered not less than 59 Ordinary Shares on the First Investment Date. 

  

	3.2	The Company’s obligation to complete the allotment and issuance of the Subscribed Shares is subject to the Investor Warranties remaining true and correct in all material
respects on the First Investment Date and the Investor having delivered to the Company a certificate, dated the First Investment Date and signed by a director of the Investor, to the foregoing effect, which condition may be waived by the Company.

  

	3.3	The Selling Shareholders’ obligations to complete the First Investment are subject to the Investor Warranties remaining true and correct on the First Investment Date.

  

	4.	REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS 

  

	4.1	Each of the Company, the PRC Subsidiary and the Founders, jointly and severally, hereby represent, warrant and undertake to the Investor in the terms set forth in Schedule 4 and
acknowledge that the Investor in entering into this Agreement is relying on such representations, warranties and undertakings. 

  

	4.2	The Selling Shareholders, jointly and severally, hereby represent, warrant and undertake to the Investor in the terms set forth in Schedule 5 and acknowledge that the Investor in
entering into this Agreement is relying on such representations, warranties and undertakings. 

  

	4.3	The Investor hereby represents, warrants and undertakes to the Company and the Selling Shareholders in the terms set forth in Schedule 6 and acknowledge that the Company and the
Selling Shareholders in entering into this Agreement are relying on such representations, warranties and undertakings. 

  

	4.4	The Collective Warranties and the Selling Shareholder Warranties are given subject to the matters disclosed in the Disclosure Letter, but no other information relating to the
Company, the PRC Subsidiary, the Founders, the Selling Shareholders of which the Investor has knowledge (actual or constructive), no other information relating to the Investor of which the Company or any of the Selling Shareholders have knowledge
(actual or constructive) and no investigation by or on behalf of the Investor, the Company or any of the Selling Shareholders shall prejudice any claim made by any Investor, the Company or any of the Selling Shareholders, as the case may be, under
the indemnity contained in Clause 8 or operate to reduce any amount recoverable thereunder. It shall not be a defence to any claim against the Company, the PRC Subsidiary, the Selling Shareholders, the Founders or the Investor that the Investor or
the Company as the case may be, knew or ought to have known or had constructive knowledge of any information (other than as disclosed in the Disclosure Letter) relating to the circumstances giving rise to such claim. For the avoidance of doubt, the
Investor hereby acknowledges and agrees that notwithstanding the foregoing provision, the Investor is precluded from making any claim against the Company, the PRC Subsidiary, the Founders, the Selling Shareholders or any of them conerning any
matters specifically disclosed in the Disclosure Letter with respect to any of the Collective Warranties and the Selling Shareholder Warranties. 

  

 15 

	4.5	The Collective Warranties, the Selling Shareholder Warranties and the Investor Warranties set forth in each paragraph of Schedule 4, Schedule 5 and Schedule 6, respectively, shall
be separate and independent and save as expressly provided shall not be limited by reference to any other paragraph or anything in this Agreement or the Schedules. 

  

	4.6	The Warranties shall be deemed to be repeated with reference to the facts and circumstances subsisting at First Investment and survive the First Investment. Notwithstanding the
foregoing, none of the Company, the PRC Subsidiary, the Selling Shareholders, the Founders or the Investor shall have any liability for breach of any warranty (other than the Collective Warranties set forth in Clauses l(a), 2(a), 2(d), 2(e) and 4(a)
of Schedule 4, the Investor Warranties set forth in Clause l(a), Clause 2(a), 2(b), 2(c) and 2(d) and the first and second sentence of Clause 3 of Schedule 6, and the Selling Shareholder Warranties) or pursuant to Clause 8 following the third
anniversary of the First Investment Date. 

  

	4.7	The liability of the Company, the PRC Subsidiary, the Founders and the Selling Shareholders (collectively the “Relevant Parties”) with respect to any breach of the
Collective Warranties and/or, as the case may be, the Selling Shareholder Warranties is subject to the following: 

  

	 	(a)	The Relevant Parties shall be under no liability with respect to a breach of any of the Collective Warranties and the Selling Shareholder Warranties or to indemnify as provided in
Clause 8 of this Agreement unless they or the Relevant Party concerned has been given written notice that the Investor has commenced legal proceedings against any or all of the Relevant Parties or sought indemnification pursuant to Clause 8.4 hereof
prior to the expiration of twenty-four (24) months from the First Investment Date. Any such claim shall be deemed to have been waived or withdrawn at the expiration of such twenty-four (24) month period unless notice is given.

  

	 	(b)	The Relevant Parties shall not incur any liability for breach of any of the Collective Warranties and the Selling Shareholder Warranties or to indemnify as provided in Clause 8 of
this Agreement: 

  

	 	(i)	if such liability would not have arisen but for something voluntarily done (other than pursuant to a legal commitment created on or before the First Investment Date) solely by the
Investor after the First Investment Date other than in the ordinary course of business of the Investor; or 

  

	 	(ii)	if such liability arises by reason of an increase in the statutory taxation rates applicable to the Company or any of its Subsidiaries or statutory change of the tax base of the
Company or any of its Subsidiaries after the First Investment Date; or 

  

	 	(iii)	to the extent that specific provision or reserve with respect to such liability has been sufficiently identified in the Accounts. 

  

 16 

	 	(c)	The Investor shall reimburse to the Relevant Parties an amount equal to any sum paid by any of them with respect to a claim under any of the Collective Warranties and/or the Selling
Shareholder Warranties or to be indemnified as provided in Clause 8 which is subsequently recovered by the Investor or paid to the Investor by a third party. 

  

	 	(d)	The aggregate liability of the Company, the PRC Subsidiary and the Founders for breach of the Collective Warranties and under the indemnity as provided in Clause 8 shall not exceed
the sum of US$4,000,000 and all interest accrued thereon at the per annum rate equal to LIBOR plus 1% from the First Investment Date, plus all reasonable costs and expenses incurred by the Investor due to such breach. 

  

	 	(e)	The aggregate liability of the Selling Shareholders for breach of the Selling Shareholder Warranties and under the indemnity as provided in Clause 8 shall not exceed the sum of
US$1,000,000 and all interest accrued thereon at the per annum rate equal to LIBOR plus 1% from the First Investment Date, plus all reasonable costs and expenses incurred by the Investor due to such breach. 

  

	5.	RESTRICTION ON ANNOUNCEMENTS 

  
 Except as required by applicable law or regulation, each Party undertakes that prior to Conditional Investment and thereafter it will not make any
announcement in connection with this Agreement unless the other Parties shall have given its consent to such announcement, including both as to timing and substance. 
  

	6.	ACCESS RIGHT TO FINANCIAL REVIEW AND FURTHER ASSURANCES 

  

	6.1	As from the date of this Agreement, the Company shall give to the Investor and its accountants, counsels and agents full access, upon reasonable prior notice and during normal
business hours, to the premises and all the books and records of the Company and the Subsidiaries and shall instruct the officers and employees of the Company and the Subsidiaries to give promptly all information and explanations to the Investor or
any such persons as the Investor may reasonably request. 

  

	6.2	As of the date of this Agreement, the Company shall further grant the Investor the right to conduct a full financial review of the Company’s Accounts for the first quarter of
2004 (the “Review”). The Company shall cooperate fully in providing all materials necessary to conduct the Review to the Investor, and Investor shall bear the expense of such Review if conducted. 

  

	6.3	Each Party shall, at any time and from time to time upon the written request of any other Party: 

  

	 	(a)	promptly and duly execute and deliver all such further instruments and documents, and do or procure to be done all such acts or things, as such other Party may reasonably deem
necessary or desirable in obtaining the full benefits of this Agreement and of the rights and ownership herein granted; and 

  

 17 

	 	(b)	do or procure to be done each and every act or thing which such other Party may from time to time reasonably require to be done for the purpose of enforcing such other Party’s
rights under this Agreement. 

  

	7.	COSTS AND EXPENSES 

  

	7.1	Each party shall bear its own legal expenses in relation to the negotiations leading up to the transactions contemplated hereunder and to the preparation, execution and carrying
into effect of the Basic Documents and all other documents referred to in them which relate to the transactions contemplated under them. 

  

	7.2	The Company shall pay for the expenses of a full financial audit and review of the Company’s and Subsidiaries’ historical financial statements for the three years ended 31
December for 2001, 2002 and 2003 by Moores Rowland Mazars; provided, however, the Investor agrees to advance the payment of such expenses and the parties hereto agree that the Investor may deduct the audit-related expenses paid on
behalf of the Company from the consideration payable by the Investor at the First Investment. 

  

	7.3	Any stamp duty payable in connection with the issue and allotment of the Subscribed Shares pursuant to this Agreement shall be borne by the Company. Any stamp duty payable in
connection with the transfer of the First Investment Sale Shares pursuant to this Agreement shall be borne by the Selling Shareholders. 

  

	8.	INDEMNIFICATION 

  

	8.1	All representations, warranties, covenants and obligations in this Agreement and any other certificate or document delivered pursuant to this Agreement will survive the closing of
the transactions contemplated by the Agreement. 

  

	8.2	Subject to Clause 4.7, the Company, the Selling Shareholders, jointly and severally, will indemnify and hold harmless Investor, their respective affiliates and directors, officers,
employees, agents, partners, stockholders, controlling persons and affiliates (collectively, the “Indemnified Persons”) for, and will pay to the Indemnified Persons the amount of, any loss, liability, claim, damage (excluding
consequential damage), expense (including costs of investigation and defense and reasonable attorneys’ fees), whether or not involving a third party claim (collectively, “Damages”), arising, directly or indirectly, from or out
of any material inaccuracy in or material breach of any representation or warranty made by the Company or the Selling Shareholders in this Agreement or any other certificate or document delivered by the Company or the Selling Shareholders pursuant
to this Agreement or any material breach of or failure to perform any covenant or obligation of the Company or the Selling Shareholders in this Agreement. The remedies provided in this Clause 8.2 will be in addition to any other remedies that may be
available to the Investor or the other Indemnified Persons under this Agreement. 

  

	8.3	The Investor will indemnify and hold harmless the Company and the Selling Shareholders, and will pay to the Company and the Selling Shareholders the amount of, any Damages arising,
directly or indirectly, from or out of any material inaccuracy in or material breach of any Investor Warranty or any material breach of or failure to perform any covenant or obligation of the Investor in this Agreement. The remedies provided in this
Clause 8.3 will be in addition to of any other remedies that may be available to the Company or the Selling Shareholders under this Agreement. 

  

 18 

 Notwithstanding the foregoing, the Investor shall be under no liability with respect to a breach of any
of the representations or warranties made in Schedule 6 hereof or to indemnify as provided in this Clause 8.3 unless the Investor has been given written notice that any or all of the Relevant Parties have filed a claim against the Investor or sought
indemnification pursuant to Clause 8.4 hereof prior to the expiration of twenty-four (24) months from the First Investment Date. Any such claim shall be deemed to have been waived or withdrawn at the expiration of such twenty-four (24) month period
unless notice is given. The Relevant Parties shall reimburse to the Investor an amount equal to any sum paid by any of them with respect to a claim under any of the Investor Warranties or to be indemnified as provided in Clause 8 which is
subsequently recovered by any of the Relevant Parties or received by any of the Relevant Parties by a third party. The aggregate liability of Investor for breach of the Investor and under the indemnity as provided in Clause 8 shall not exceed the
sum of US$4,000,000 and all interests accrued thereon at the per annum rate equal to LIBOR plus 1% from the First Investment Date, plus all reasonable costs and expenses incurred by the Relevant Parties due to such breach. 
  

	8.4	Procedure for Indemnification - Third Party Claims 

  

	 	(a)	Promptly after receipt by an indemnified party under Clause 8.2 or 8.3 of notice of the commencement of any action or proceeding against it, such indemnified party will, if a claim
is to be made against an indemnifying party under such Clause, give notice to the indemnifying party of the commencement of such claim, but the failure to notify the indemnifying party will not relieve the indemnifying party of any liability that it
may have to any indemnified party, except to the extent that the indemnifying party demonstrates that the defense of such action is prejudiced by the indemnified party’s failure to give such notice. 

  

	 	(b)	If any action or proceeding referred to in Clause 8.2 or 8.3 is brought against an indemnified party and it gives notice to the indemnifying party of the commencement of such action
or proceeding, the indemnifying party will, be entitled to participate in such action or proceeding and, to the extent that it wishes (unless (i) the indemnifying party is also a party to such action or proceeding and the indemnified party
determines in good faith that joint representation would result in a conflict of interest, or (ii) the indemnifying party fails to provide reasonable assurance to the indemnified party of its financial capacity to defend such action or proceeding
and provide indemnification with respect to such action or proceeding), to assume the defense of such action or proceeding with counsel reasonably satisfactory to the indemnified party and, after notice from the indemnifying party to the indemnified
party of its election so to assume the defense of such action or proceeding, the indemnifying party will not, as long as it diligently conducts such defense, be liable to the indemnified party under this Clause 8 for any fees of other counsel or any
other expenses with respect to the defense of such action or proceeding, in each case subsequently incurred by the indemnified party in connection with the defense of such action or proceeding. If the indemnifying party assumes the defense of an
action or proceeding, no compromise or settlement of such claims may be effected by the indemnifying party without the indemnified party’s consent unless such compromise or settlement includes an 

  

 19 

 unconditional release of the indemnified party from all liability arising or that may arise out of such
claim, action or proceeding. If the indemnifying party elects not to assume the defense of an action or proceeding, the indemnifying party will have no liability with respect to any compromise or settlement of such claims effected without its
consent. 
  

	 	(c)	Notwithstanding the foregoing, if an indemnified party determines in good faith that there is a reasonable probability that an action or proceeding may adversely affect it or its
affiliates other than as a result of monetary damages for which it would be entitled to indemnification under this Agreement, the indemnified party may, by notice to the indemnifying party, assume the exclusive right to defend, compromise, or settle
such action or proceeding in so far as it relates to the indemnified party, but the indemnifying party will not be bound by any determination of an action or proceeding so defended or any compromise or settlement effected without its consent (which
may not be unreasonably withheld or delayed). 

  

	8.5	A claim for indemnification for any matter not involving a third-party claim may be asserted by notice to the party from whom indemnification is sought. 

  

	9.	EXCLUSIVITY 

  
 From the date hereof through the First Investment Date, each Party shall not, and shall cause each of its shareholders or representatives (including
without limitation attorneys and accountants), not to, directly or indirectly, enter into, solicit, initiate or continue any discussions or negotiations with, or encourage or respond to any inquiries or proposals by, or participate in any
negotiations with, or provide any information to, or otherwise cooperate in any other way with, any Person, other than the Investor and its representatives, concerning any sale of all or a portion of the assets of the Company or any of its
Subsidiaries outside its ordinary course of business, or of any shares of the Company, or any merger, consolidation, liquidation, dissolution or similar transaction involving the Company. 
  

	10.	NO ISSUANCE OF SECURITIES 

  
 From the Date hereof until January 1, 2005, the Company and the PRC Subsidiary shall not, and the Company shall cause the Subsidiaries not to, issue any
Ordinary Shares or any other securities to any Person except for the Subscribed Shares to the Investor and that number of Ordinary Shares to Lai on or prior to the First Investment Date on the terms Disclosed to the Investor. In the event the
Investor’s IPO is completed by December 31, 2004, the Company shall continue to be subject to the restriction in this Clause 10 until October 1, 2005. 
  

	11.	NOTICES 

  

	11.1	Each notice, demand or other communication give or made under this Agreement shall be in writing and delivered or sent to the Founders, Selling Shareholders and Lai at their
respective addresses or fax numbers set out in Schedule 1 or Schedule 2 (or such other address or fax number as the addressee has by five days’ prior written notice specified to the other Parties). Any notice, demand or other communication so
addressed to the relevant Party shall be deemed to have been delivered (a) if given or made by letter, when actually delivered to the relevant address; and (b) if given or made by fax, upon dispatch and the receipt of a transmission report
confirming dispatch. 

  

 20 

	11.2	Notices to the Company shall be sent to: 

  
 Object Software Limited 
 Suite 4A, No. 6
Knutsford Terrace 
 Tsimshatsui, Kowloon, Hong Kong 
 Attention: CEO 
 Fax: 852-2956-0576 
  
 Notices to the Investor shall be sent to: 
  
 The9 Computer Technology Consulting (Shanghai) Co., Ltd. 
 30/F CITIC Square, No. 1168 Nanjing Road (W) 
 Shanghai 200041, P.R. China 
 Attention: CEO 
 Fax: 86-10-65156583 
  

	12.	MISCELLANEOUS 

  

	12.1	This Agreement may not be amended, modified or supplemented except by a written instrument executed by each of the Parties. 

  

	12.2	No waiver of any provision of this Agreement shall be effective unless set forth in a written instrument signed by the Party waiving such provision. No failure or delay by a Party
in exercising any right, power or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of the same preclude any further exercise thereof or the exercise of any other right, power or remedy. Without
limiting the foregoing, no waiver by a Party of any breach by another Party of any provision hereof shall be deemed to be a waiver of any subsequent breach of that or any other provision hereof. 

  

	12.3	This Agreement shall not be assignable, except that the Investor may assign its rights and obligations hereunder to an Affiliate of the Investor. 

  

	12.4	This Agreement (together with the other Basic Documents and any other documents referred to herein or therein) constitutes the whole agreement between the Parties relating to the
subject matter hereof and supersedes any prior agreements or understandings relating to such subject matter. 

  

	12.5	The provisions of this Agreement, insofar as the same shall not have been fully performed at the First Investment, shall remain in full force and effect notwithstanding the First
Investment. 

  

	12.6	Each and every obligation under this Agreement shall be treated as a separate obligation and shall be severally enforceable as such and in the event of any obligation or obligations
being or becoming unenforceable in whole or in part. To the extent that any provision or provisions of this Agreement are unenforceable they shall be deemed to be deleted from this Agreement, and any such deletion shall not affect the enforceability
of this Agreement as remain not so deleted. 

  

 21 

	12.7	Each Party hereto represents and agrees with each other that it has been represented by or had the opportunity to be represented by, independent counsel of its own selection, and
that it has had full legal right and opportunity to consult with its respective attorney(s), that to the extent, if any, that it desired, it availed itself of this right and opportunity, that it or its authorized officers (as the case may be) have
carefully read and fully understand this Agreement in its entirety and have had it fully explained to them by such Party’s respectively counsel, that each Party is fully aware of the contents hereof and its meaning, intent and legal effect, and
that it or its authorized officer (as the case may be) is competent to execute this Agreement and has executed this Agreement free from coercion, duress or undue influence. 

  

	12.8	This Agreement is the product among the Parties hereto and any rules of construction relating to interpretation against the drafter of an agreement shall not apply to this Agreement
and are expressly waived by the Parties hereto. 

  

	12.9	This Agreement may be executed in one or more counterparts which, signed and taken together, shall constitute one document. 

  

	13.	GOVERNING LAW AND JURISDICTION 

  

	13.1	This Agreement shall be governed by and construed in accordance with the laws of Hong Kong. With respect to any suit, action or proceeding seeking to enforce any provision of, or
based on any matter arising out of or in connection with this Agreement or the transactions contemplated hereby, the parties hereto submit to the non-exclusive jurisdiction of the courts located in Hong Kong and each of the parties hereby consents
to the jurisdiction of such courts (and of the appropriate appellate courts) in any such suit, action or proceeding and waives any objection to venue laid therein. 

  

	13.2	The Company hereby appoints Object Software (H.K.) Limited of Suite 4A, No. 6 Knutsford Terrace, Tsimshatsui, Kowloon, Hong Kong, (or such other address as may have been notified by
the Company in writing) as its agent to receive and acknowledge on its behalf service of any writ, summons, order, judgment or other notice of legal process in Hong Kong. If for any reason such agent (or its successor) no longer serves as agent of
the Company for this purpose, the Company shall promptly appoint a successor agent and notify the each of other parties hereto. The Company agrees that any such legal process shall be sufficiently served on it if delivered to such agent for service
at its address for the time being in Hong Kong whether or not such agent gives notice thereof to the Company. 

  
 The Investor hereby appoints GameNow.net (Hong Kong) Limited, of 22/F, Hang Lung Centre, 2-20 Paterson Street, Causeway Bay, Hong Kong, (or such other
address as may have been notified by the Investor in writing) as its agent to receive and acknowledge on its behalf service of any writ, summons, order, judgment or other notice of legal process in Hong Kong. If for any reason that Person (or its
successor) no longer serves as agent of the Investor for this purpose, the Investor shall promptly appoint a successor agent and notify the each of other parties hereto. The Investor agrees that any such legal process shall be sufficiently served on
it if delivered to such agent for service at its address for the time being in Hong Kong whether or not such agent gives notice thereof to the Investor. 
  

 22 

 IN WITNESS WHEREOF this Agreement has been executed on the day and year first above written. 
  

			
	THE9 LIMITED
		
	 By:
	 	 /s/ Zhu Jun

	 Name:
	 	Zhu Jun
	 Title:
	 	CEO
	
	OBJECT SOFTWARE LIMITED
		
	 By:
	 	 /s/ Richard Alan Wallis

	 Name:
	 	Richard Alan Wallis
	 Title:
	 	Chairman and CEO
	
	OBJECT SOFTWARE (BEIJING) CO., LTD.
		
	 By:
	 	 /s/ Hendrick Lam

	 Name:
	 	Hendrick Lam
	 Title:
	 	Legal Representative & Chairman
	
	 
	RICHARD ALAN WALLIS
	
	 /s/ Richard Alan Wallis

	  
 ZHANG CHUN, PERSY
  
 /s/ ZHANG CHUN, PERSY

  

 23 

			
	LAM W. K., HENDRICK
	
	 /s/ Lam W. K., Hendrick

	
	CHIU PAK YUE, LEO
	
	 /s/ Chiu Pak Yue, Leo

	
	OBJECT SOFTWARE EMPLOYEE BENEFIT
	TRUST
	
	 /s/ Richard Alan Wallis

	 By:
	 	Richard Alan Wallis
	 Title:
	 	Trustee
	
	 /s/ Lam W. K., Hendrick

	 By:
	 	Lam W. K., Hendrick
	 Title:
	 	Trustee
	
	LAI KUI MING, PHILIP
	
	 /s/ Lai Kui Ming, Philip

  

 24 

 SCHEDULE 1 
  
 FIRST INVESTMENT 
  

			
	 SUBSCRIBED SHARES CONSIDERATION
	  	US$3,000,000.00
		
	 SUBSCRIBED SHARES
	  	180 Ordinary Shares
		
	 FIRST INVESTMENT SALE SHARES CONSIDERATION TO
 Richard Alan Wallis
 Zhang Chun, Persy
 Lam W. K., Hendrick
 Chiu Pak Yue,
Leo
 Object Software Employee Benefit Trust
	  	US$610,170
US$135,593
US$118,644
US$33,898
US$101,695
		
	 FIRST INVESTMENT SALE SHARES FROM
 Richard Alan Wallis
 Zhang Chun, Persy
 Lam W. K., Hendrick
 Chiu Pak Yue,
Leo
 Object Software Employee Benefit Trust
	  	36 Ordinary Shares
8 Ordinary Shares
7 Ordinary Shares
2 Ordinary Shares
6 Ordinary Shares
		
	 THE9 LIMITED’S HOLDING IN THE COMPANY AFTER FIRST INVESTMENT
	  	239 Ordinary Shares

  

 Schedule 1-1 

 SCHEDULE 2 
  
 THE SUBSIDIARIES AND THE SELLING SHAREHOLDERS 
  

					
	 Part A — The Founders
	 	Mailing Address	 	Fax Number
			
	 Richard Alan Wallis
	 	 Suite 4A, No. 6 Knutsford Terrace,
 Tsimshatsui,
Kowloon, Hong Kong
	 	852-2956 0576
			
	 Zhang Chun, Persy
	 	 Room 1603, Building 12, Chang Wa Xiao
 Qu, Haidian
District, Beijing
	 	86-10-8846 9053
			
	 Lam W.K., Hendrick
	 	 Room 3310, Tin Kin House, Tim Wan,
 Hong
Kong
	 	852-2956 0576
			
	Part B — The Subsidiaries	 	Mailing Address	 	Fax Number
			
	 Object Software (Beijing) Co. Ltd.
	 	 3rd floor,
Xingya Mansion, No.63 North
 Avenue, 4th West Ring Road, Haidian
 District, Beijing, China zip 100089
	 	86-10-8846 9053
			
	 Object Software B.V.
	 	 Zeemansstraat 13, 3016CN Rotterdam,
 P.O. Box 23169,
3001KD Rotterdam,
 The Netherlands
	 	31-10-436 10 68
			
	 Object Software (H.K.) Limited
	 	 Suite 4A, No. 6 Knutsford Terrace,
 Tsimshatsui,
Kowloon, Hong Kong
	 	852-2336 3017

  

 Schedule 2-1 

					
	Part C — The Selling Shareholders	 	Address	 	Fax Number
			
	 Richard Alan Wallis
  

(for himself and on behalf of the Object Software Employee Benefit Trust)
	 	 Suite 4A, No. 6 Knutsford Terrace,
 Tsimshatsui, Kowloon,
Hong Kong
	 	852-2956 0576
			
	 Zhang Chun, Persy
	 	 Room 1603, Building 12, Chang Wa Xiao
 Qu, Haidian
District, Beijing
	 	86-10-8846 9053
			
	 Lam W. K., Hendrick
  

(for himself and on behalf of the Object Software Employee Benefit Trust)
	 	 Room 3310, Tin Kin House, Tim Wan,
 Hong
Kong
	 	852-2956 0576
			
	 Chiu Pak Yue, Leo
	 	 41st Floor,
Jardine House, 1 Connaught
 Place, Central, Hong Kong
	 	852- 2111 3299
			
	 Part D—Philip Lai
	 	Address	 	Fax Number
			
	 Lai Kui Ming, Philip
	 	 House K50, Marina Cove, Sai Kung,
 Kowloon, Hong
Kong
	 	852-2798 7399

  

 Schedule 2-2 

 SCHEDULE 3 
  
 PARTICULARS OF THE COMPANY 
  
 PART A – THE COMPANY 
  

					
	Registered office	 	:	 	 P.O. Box 71, Craigmuir Chambers,
 Road Town,
Tortola, British Virgin
 Islands.

	Date of incorporation	 	:	 	5th January, 1995
	Registration Number	 	:    	 	139116
	Place of Incorporation	 	:	 	British Virgin Islands
	Directors	 	:	 	 Richard Alan Wallis
 Zhang Chun,
Persy
 Hendrick W.K. Lam

	Secretary	 	:	 	CCM Corporate Services Limited
	Share Capital: Authorised	 	:	 	US$500,000.00
	                Issued and paid up	 	:	 	US$1,000.00
	Shareholders as of date hereof	 	:	 	 Richard Alan Wallis
 Zhang Chun,
Persy
 Lam W. K., Hendrick
 Chiu Pak Yue, Leo
 Richard Alan Wallis & Lam W. K., Hendrick

  

							
	 Registered Shareholder

	  	 Beneficial Shareholder

	  	No. of Shares

	  	 Type of Shares

	Richard Alan Wallis	  	Richard Alan Wallis	  	605	  	Ordinary Shares
	Zhang Chun, Persy	  	Zhang Chun, Persy	  	135	  	Ordinary Shares
	Lam W. K., Hendrick	  	Lam W. K., Hendrick	  	116	  	Ordinary Shares
	Chiu Pak Yue, Leo	  	Chiu Pak Yue, Leo	  	39	  	Ordinary Shares
	 Richard Alan Wallis &
 Lam W. K.,
Hendrick
	  	Object Software Employee Benefit Trust	  	105	  	Ordinary Shares
	 	  	 	  	
	  	 
	 	  	 	  	1,000	  	 
	 	  	 	  	
	  	 

  

			
	Financial Year End :	 	31st December

  

 Schedule 3-1 

 PART B – THE SUBSIDIARIES 
  
 Subsidiaries 
  
 Object Software (Beijing) Co., Ltd. 
  
 Object Software B.V. 
  
 Object Software (H.K.) Limited 
  
 PART C – POST-FIRST INVESTMENT CAPITALIZATION TABLE 
  

			
	 Name of the Shareholders

	  	 Number of
 Ordinary
 Shares Held

	 Richard Alan Wallis
	  	569
	 Lam W. K., Hendrick
	  	109
	 Zhang Chun, Persy
	  	127
	 Chiu Pak Yue, Leo
	  	37
	 Object Software Employee Benefit Trust
	  	99
	 Lai Kui Ming, Philip
	  	15
	 The9 Limited
	  	239
	 	  	

	 Total:
	  	1,195
	 	  	

  

 Schedule 3-2 

 SCHEDULE 4 
  
 COLLECTIVE WARRANTIES2 
  
 Definitions 
  
 In this Schedule, capitalized terms not otherwise defined have the
meanings set forth in the Agreement, and the following terms have the meanings specified. 
  
 “Accounts” means the audited consolidated balance sheets of the Company and the Subsidiaries as at December 31, 2001, December
31, 2002 and December 31, 2003, respectively, and the audited consolidated statements of income and cash flows of the Company and the Subsidiaries for financial years of the Company ended on such dates, copies of which are annexed hereto and
initialed by the Parties for purposes of identification. 
  
 “Accounts Date” means December 31, 2003. 
  
 “Assets” means all assets, rights and privileges of any nature and all goodwill associated therewith, including without
limitation all rights in respect of Contracts, all Intellectual Property, Equipment and Software, but excluding rights in respect of real property. 
  
 “Contracts” means all contracts, agreements, licenses, engagements, leases, financial instruments, purchase orders, commitments
and other contractual arrangements which have a continuing effect as of the date of this Agreement. 
  
 “Disclosed” means fully and fairly disclosed by the Company in the Disclosure Letter or in this Agreement. 
  
 “Equipment” means all the plant and machinery,
tools and equipment, vehicles and office furniture, computer equipment (including without limitation servers, personal computers, mainframes, modems, screens, terminals, keyboards, disks, printers, cabling and associated and peripheral electronic
equipment) and other tangible assets, but excluding Software. 
  
 “Intellectual Property” means all letters patent, trademarks, service marks, registered designs, domain names and utility models, copyrights, inventions, confidential information, brand names, database
rights, know-how and business names and any similar rights situate in any country and the benefit (subject to the burden) of any of the foregoing (in each case whether registered or unregistered and including applications for the grant of any of the
foregoing and the right to apply for any of the foregoing in any part of the world). 
  
 “Liabilities” means all indebtedness and other liabilities of any nature whatsoever, actual or contingent, and whether or not of
a nature required to be disclosed in the accounts of the Company or the Subsidiaries, as the case may be. 
  
 “Software” means any set of instructions for execution by microprocessor, irrespective of application, language or medium.

  

	2	These representations and warranties may be supplemented as a result of due diligence. 

  

 Schedule 4-1 

 “Warrantors” means the Company, the Founders and the PRC Subsidiary.

  
 The Warranties 
  
 The Company, the Founders and the PRC Subsidiary (as regards the PRC
Subsidiary only, to the extent that the Collective Warranties relate to it) hereby jointly and severally represent and warrant to the Investor that, except as Disclosed: 
  

	 	1.	CORPORATE MATTERS 

  

	 	(a)	Organization Good Standing and Qualification. The Company has been duly incorporated or established and organized, and is validly existing and in good standing, under the
laws of the British Virgin Islands. The Subsidiaries have been duly incorporated or established and organized and are validly existing in good standing, under the laws of the respective jurisdictions in which they are incorporated or established.
Each of the Company and the Subsidiaries has the corporate power and authority to own and operate its Assets and properties and to carry on its business as currently conducted. 

  

	 	(b)	Charter Documents. The copies of the Company’s and Subsidiaries’ Charter Documents (having attached thereto copies of all such resolutions as are by law required to
be attached thereto and all amendments made to date) that have been delivered to the Investor are true and complete. All legal requirements and formalities concerning such Charter Documents have been duly and properly complied with in all material
respects. 

  

	 	(c)	Capitalization and Other Particulars of the Company. The particulars of the Company’s share capital, and the other particulars of the Company, set forth in Part A of
Schedule 3 are true, complete and correct as of the date hereof and will be true, complete and correct as of First Investment Date except for the authorization and issuance of the Subscribed Shares. The particulars of the Subsidiaries’
registered capital and total investment amount, and the other particulars of the Subsidiaries’, set forth in Part B of Schedule 3 are true, complete and correct as of the date hereof and will be true, complete and correct as of First Investment
Date. The particulars of the Company’s share capital set forth in Part C of Schedule 3 is a true, complete and correct description of the share capital of the Company assuming the First Investment has occurred. On First Investment Date, the
rights, preferences and privileges of the Ordinary Shares will be as set forth in the Restated Articles and, other than the Subscribed Shares, no Ordinary Shares will be in issue. 

  

	 	(d)	Options Warrants and Reserved Shares. Except for rights of first refusal, tag-along rights and pre-emption rights to be granted pursuant to the Shareholders Agreement, there
are no outstanding options, warrants, rights (including conversion or preemption rights) or agreements for the subscription or purchase from the Company or any of the Subsidiaries of any shares in the capital stock of the Company or any of the
Subsidiaries or any securities convertible into or ultimately exchangeable or 

  

 Schedule 4-2 

	 	    	exercisable for any shares of capital stock of the Company or any of the Subsidiaries, and no shares in the capital stock of the Company or any of the Subsidiaries, or share
issuable upon exercise of any outstanding options, warrants or rights, or other shares issuable by the Company or any of the Subsidiaries, are subject to any preemptive rights, rights of first refusal or other rights to subscribe or purchase such
shares (whether in favor of the Company or any of the Subsidiaries, as the case may be, or any other person), pursuant to any agreement or commitment of the Company. 

  

	 	(e)	Consents Permits and Waivers. The Company is not required to obtain any consents, permits and waivers necessary or appropriate for entering into and consummating the
transactions contemplated by this Agreement and the Basic Documents. 

  

	 	(f)	Other Rights with respect to Shares. To the best of the Company’s knowledge, except as contemplated in this Agreement or the Shareholders’ Agreement, no voting or
similar agreements exist related to the Company’s or any of the Subsidiaries’ securities which are presently outstanding or that may hereafter be issued. The Company has not provided any Person any right to cause any securities of the
Company or any of the Subsidiaries to be registered under the Securities Act of 1933 of the United States of America. 

  

	 	(g)	Subsidiaries. Except for the Subsidiaries listed in Schedule 3, the Company does not own any direct or indirect interest in any other Person. 

  

	 	(h)	Corporate Records. The statutory books, minute books and register of members of the Company and the Subsidiaries have been properly and accurately maintained in all material
respects and contain full and accurate records of all resolutions passed by the directors and the shareholders of the Company and the Subsidiaries and all issuances and transfers of shares or other securities of the Company or the Subsidiaries.

  

	 	(i)	No Business or Liabilities. The Company (i) is a holding company and has not carried on any business (other than the acquisition of interests in the Subsidiaries, the holding
of such interests and the holding of certain Intellectual Property) and (ii) other than the shareholder loans referred to in Schedule 5 does not have any liabilities or obligations exceeding US$ 50,000 on an individual basis, of any nature
whatsoever. 

  

	 	(j)	Management’ Competitive Activities. The Founders do not hold any equity interests in any entity that carries on any business that competes with the business of the
Company or any of the Subsidiaries as presently conducted other than their respective investments in listed companies. 

  

 Schedule 4-3 

	 	2.	AUTHORIZATION AND VALIDITY OF TRANSACTIONS 

  

	 	(a)	Authorization. The Founders have the legal right, power and authority and the Company and each of the Subsidiaries have the corporate power and authority to, as the case may
be, execute, deliver and perform the Basic Documents to which they are a party. All action on the part of the Founders and all corporate action on the part of the Board and the Shareholders, as the case may be, necessary for the authorization,
execution, delivery of and the performance of all obligations of the Founders and the Company respectively under the Basic Documents, the authorization, issuance and delivery of the Subscribed Shares and the sale and transfer of the First Investment
Sale Shares and the filing of the Restated Articles have been taken. 

  

	 	(b)	Valid Issuance of Stock. The Subscribed Shares, when issued and paid for as provided in this Agreement, will be duly authorized and validly issued, fully paid and
non-assessable. The Subscribed Shares, when issued and paid for as provided in this Agreement, and the First Investment Sale Shares are and will be free of restrictions on transfer other than restrictions on transfer under the Shareholders
Agreement, the Restated Articles and any applicable securities laws. 

  

	 	(c)	Enforceability. This Agreement is, and each other Basic Document to which the Company is a party will, when executed by the Investor, be the valid and binding obligation of
the Company, enforceable against the Company in accordance with their respective terms. This Agreement is, and each other Basic Document to which the Founders are a party will when executed be, the valid and binding obligation of the Founders,
enforceable against the Founders in accordance with its terms. 

  

	 	(d)	Consents and Approvals. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Authority
or any other Person is required in connection with the execution, delivery and performance by the Company of this Agreement and the Shareholders Agreement or the consummation of the transactions contemplated by the Basic Documents.

  

	 	(e)	No Breach. The execution and delivery by the Company and the Founders of this Agreement and each other Basic Document to which it is a party and the performance by the
Company and the Founders of their respective obligations under the Basic Documents do not and will not: 

  

	 	(i)	breach or constitute a default under any Charter Document of the Company or the Subsidiaries; 

  

	 	(ii)	result in a breach of, or constitute a default under, any Contract to which the Company, the Subsidiaries or any Founders is a party or by which it is bound;

  

 Schedule 4-4 

	 	(iii)	result in a violation or breach of or default under any applicable law or regulation or of any order, judgment or decree of any Governmental Authority to which the Company, the
Subsidiaries or any Founders is a party or by which the Company, the Subsidiaries or any Founders is bound. 

  

	 	(f)	Employee Benefit Trust. The Company has assisted in the creation of an employee benefit Trust (the “Trust”) for the benefit of the employees of Object Software
(Beijing) Co., Ltd. The Trust is not maintained by the Company, but by Richard Wallis and Hendrick Lam, the joint trustees of the Trust. The Trust has been duly set up, and to the Warrantor’s best knowledge, complies with the applicable law.

  

	 	3.	LEGAL COMPLIANCE 

  

	 	(a)	No Violation of Law. To the best of the Warrantors’ knowledge, none of the Company, any of the Subsidiaries or any Founders is or has at any time been in violation of
any applicable law or regulation which may result in any liability or criminal or administrative sanction to the Company or any Subsidiaries or otherwise have a material adverse effect on the ability of the Company or any Subsidiaries to conduct its
business as currently conducted. 

  

	 	(b)	Permits. The Company and each of the Subsidiaries have all permits, approvals, authorizations, franchises and licenses necessary for the conduct of its business as currently
conducted. To the best of the Warrantors’ knowledge, neither the Company nor any of the Subsidiaries is in breach of or default under any such permit, approval, authorization, franchise or license. 

  

	 	4.	ASSETS 

  

	 	(a)	Status of Assets. Each of the Company and the Subsidiaries owns or has the right to use all Assets required for the conduct of its business as currently conducted. The Assets
owned by the Company and the Subsidiaries are free and clear of all Encumbrances. The Company has made available to the Investor true and complete copies of the leases relating to all Assets leased by the Company and the Subsidiaries and the Company
and the Subsidiaries, as the case may be, are in compliance with all such leases. The Equipment of the Company and the Subsidiaries has been properly maintained and are in good working condition in all material respects. 

  

	 	(b)	Intellectual Property Rights. 

  

	 	(i)	Without limiting the generality of paragraph 4(a) of this Schedule 4, the Company and the Subsidiaries have all rights to the Intellectual Property developed by the Company or any
of the Subsidiaries, subject to the right to use granted to third parties, and the Company and the Subsidiaries have legal right to use the Intellectual Property required for the business of the Company and the Subsidiaries as currently conducted.

  

 Schedule 4-5 

	 	(ii)	Details of all Intellectual Property owned by the Company and the Subsidiaries are set out in the Disclosure Letter, distinguishing among rights that have been registered, rights in
respect of which applications to register have been made and rights in respect of which no such registration or application has been made. 

  

	 	(iii)	Details of all licenses granted to or by the Company or the Subsidiaries in respect of any Intellectual Property (the “IP Licenses”) are set out in the Disclosure
Letter. True and complete copies of all IP Licenses have been made available to the Investor. Except as provided in the IP Licenses, neither the Company nor the Subsidiaries is obligated to pay any royalties or other payments to any Person in
respect of Intellectual Property used by the Company or the Subsidiaries. To the best of the Warrantors’ knowledge, neither the Company nor the Subsidiaries is in breach of any IP License or of any agreement under which any confidential
business information was or is to be made available to it. 

  

	 	(iv)	To the best of the Warrantors’ knowledge, all rights in all Intellectual Property and confidential business information required for the business of the Company or the
Subsidiaries as currently conducted are vested in or validly granted to the Company and the Subsidiaries, as the case may be, and except as Disclosed in relation to paragraph (iii) above are not subject to any limit as to time or any other
limitation, right of termination (including on any change in the underlying ownership or control of the Company or the Subsidiaries) or restriction and all renewal fees and steps required for their maintenance or protection have been paid and taken.

  

	 	(v)	Except for the IP Licenses, neither the Company nor any of the Subsidiaries is a party to any confidentiality or other agreement or subject to any duty that restricts the free use
or disclosure by the Company or any Subsidiaries, or requires disclosure of business information owned by or required for the business of the Company or the Subsidiaries. 

  

	 	(vi)	Except for the IP Licenses granted in the ordinary course of business, neither the Company nor any of the Subsidiaries has granted, nor is obliged to grant, any license, sub-license
or assignment in respect of any Intellectual Property owned or otherwise required for the business of the Company or the Subsidiaries, and has not disclosed nor is obliged to disclose any confidential business information required for the business
of the Company or the Subsidiaries to any Person, other than its employees for the purpose of carrying on its business. Except for 

  

 Schedule 4-6 

	 	    	the IP Licenses granted in the ordinary course of business, there are no restrictions on the right of the Company and the Subsidiaries to license or sub-license any Intellectual
Property owned by it. To the best of the Company’s knowledge, there is not, nor has there been at any time, any unauthorized use or infringement by the Company or the Subsidiaries of any Intellectual Property or confidential business
information of any Person. 

  

	 	(vii)	To the best of the Company’s knowledge, the processes and methods employed, the services provided, the businesses conducted and the products manufactured, used or dealt in by
the Company or the Subsidiaries does not, or at the time of being employed, provided, conducted, manufactured, used or dealt in did not, infringe the rights of any other Person in any Intellectual Property or business information.

  

	 	(viii)	Neither the Company nor any of the Subsidiaries has applications to register any Intellectual Property which are not being pursued with all reasonable due diligence.

  

	 	(ix)	All employees of the Company and all the employees of the Subsidiaries have entered into a standard confidentiality and non-competition agreements, copies of which have been
provided to the Investor. To the Warrantors’ best knowledge, none of these employees are in breach of such agreements. To the Warrantors’ actual knowledge, none of its or the Subsidiaries’ employees is obligated under any Contract, or
subject to any judgment, decree or order of any Governmental Authority, that would interfere with the use of his or her best efforts to promote the interests of the Company and the Subsidiaries or that would conflict with the Company’s or any
the Subsidiaries’ business as currently conducted. To the Warrantors’ actual knowledge, neither the execution or delivery of this Agreement or the Shareholders Agreement, nor the carrying on of the Company’s or any the Subsidiaries
business by the employees of the Company and the Subsidiaries, nor the conduct of the Company’s or any of the Subsidiaries’ business as proposed, will conflict with or result in a breach of the terms, conditions or provisions of, or
constitute a default under, any contract, covenant or instrument under which any of such employees is now obligated. 

  

	 	(c)	Real Property. Neither the Company nor any of the Subsidiaries owns any land, buildings or other real property. The Company has provided to the Investor true and complete
copies of all real property leases in respect of real property used by the Company or the Subsidiaries. The Company and the Subsidiaries are in compliance in all material respects with all such leases. 

  

 Schedule 4-7 

	 	5.	CONTRACTS AND TRANSACTIONS 

  

	 	(a)	Contracts. Except as Disclosed, neither the Company nor any of the Subsidiaries is a party to or bound by any Contract that (i) was entered into outside of the ordinary
course of business of the Company or the Subsidiaries, (ii) has a term (including extensions at the option of any other party thereto) in excess of three years, (iii) involves payments by the Company or any of its Subsidiaries in excess of US$50,000
or (iv) is otherwise material to the business or financial condition of the Company or any of the Subsidiaries (collectively, “Material Contracts”). A list of all Material Contracts which are subsisting or have continuing effect as
of First Investment Date is included in the Disclosure Letter. True and complete copies of all Material Contracts have been made available to the Investor. To the Warrantors’ best knowledge, neither the Company nor any of the Subsidiaries is in
material default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any Contract to which it is a party. Each such Contract has been duly executed and delivered by the Company and the
Subsidiaries, as the case may be, and constitutes the valid and binding obligation of the Company and Subsidiaries thereto, enforceable against the Company and Subsidiaries thereto in accordance with its terms. To the best of the Warrantors’
knowledge, no party is in material breach of any such Contract or has indicated any intention to terminate any such Contract prior to the expiration of its term. 

  

	 	(b)	Related Party Transactions. Except as Disclosed, there are no Contracts, understandings, transactions or proposed transactions between the Company or the Subsidiaries on the
one hand and any Related Party on the other hand. No Related Party or employee of the Company or any of the Subsidiaries or any member of his or her immediate family is indebted to the Company or any of the Subsidiaries, nor is the Company or any of
the Subsidiaries indebted (or committed to make loans or extend or guarantee credit) to any of them. To the best of the Company’s knowledge, none of such Persons has any direct or indirect ownership in any business entity with which the Company
is affiliated or with which the Company or any of the Subsidiaries has a business relationship, or any business entity that competes with the Company or any of the Subsidiaries, other than passive shareholdings of less than 5% in publicly listed
companies that may compete with the Company or any of the Subsidiaries. To the best of the Company’s knowledge, no such Person is, directly or indirectly, interested in any Contract with the Company or any of the Subsidiaries.

  

	 	6.	FINANCIAL MATTERS 

  

	 	(a)	Accounts. The Accounts have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis fairly present the state of
affairs, assets and liabilities, financial position and profit or loss of the Company and the Subsidiaries as at the respective dates thereof and for the periods covered thereby and are not affected by any unusual or non-recurring items not covered
therein. The Company has appointed Moores Rowland Mazars as its auditor. 

  

 Schedule 4-8 

	 	(b)	Liabilities. Neither the Company nor any of the Subsidiaries has any Liabilities other than Liabilities reflected in the Accounts and Liabilities incurred in the ordinary
course of business since the Accounts Date. Neither the Company nor any of the Subsidiaries has guaranteed any indebtedness of any Person other than the Company and the Subsidiaries. 

  

	 	(c)	Taxes. The Company and the Subsidiaries have filed all tax returns and reports as required by law. These returns and reports are true and correct in all material respects.
The Company and the Subsidiaries have paid all taxes and other assessments due. 

  

	 	(d)	Projections. In connection with the transactions contemplated by this Agreement, the Company has furnished to the Investor certain projected budgets, financial statements and
forecasts. Such projected budgets, financial statements and forecasts were prepared by the Company and the Subsidiaries in good faith based on its best knowledge, information and belief. 

  

	 	(e)	Accounts Receivable. All of the accounts receivable of the Company and the Subsidiaries were created in the ordinary course of the Company’s and the Subsidiaries’
business, and, to the Warrantors’ best knowledge, are collectible in the face value thereof. 

  

	 	(f)	Accounts Payable. All of the accounts payable of the Company and each Subsidiaries were incurred in the ordinary course of the Company’s or the Subsidiaries’
business, and the Company or the Subsidiaries respectively received fair value for the incurrence of each. 

  

	 	7.	OPERATIONS 

  

	 	(a)	Activities Since Accounts Date. Since the Accounts Date, there has not been: 

  

	 	(i)	any damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting the Assets used by the Company or any of the Subsidiaries or the operating
results or business of the Company or any of the Subsidiaries as currently conducted; 

  

	 	(ii)	any waiver by the Company or any of the Subsidiaries of a valuable right or of a material debt owed to it; 

  

	 	(iii)	any material change or amendment to a Material Contract by which the Company or any of the Subsidiaries is bound, except for changes or amendments which are Disclosed;

  

	 	(iv)	any resignation, threatened resignation or termination of any key officers of the Company or any of the Subsidiaries; 

  

 Schedule 4-9 

	 	(v)	any declaration or payment of any dividend or other distribution by the Company or any of the Subsidiaries; 

  

	 	(vi)	any debt, obligation or liability incurred, assumed or guaranteed by the Company or any of the Subsidiaries, except those for immaterial amounts and for those incurred in the
ordinary course of business; or 

  

	 	(vii)	any agreement or commitment by the Company or any of the Subsidiaries to do any of the things described in this Clause 7(a). 

  

	 	(b)	Current Operations. To the Warrantors’ best knowledge, there is no existing fact or circumstance that may have a material adverse effect on the ability of the Company or
the Subsidiaries to conduct its business as currently conducted. 

  

	 	(c)	No Directed Selling Efforts. Neither the Company nor any of the Subsidiaries has engaged in any advertising or any other promotional activity in the United States that would
constitute “Directed Selling Efforts” (as such term is defined in Rule 902(c) of Regulation S of the Securities Act) with respect to the Subscribed Shares or the First Investment Sale Shares. 

  

	 	8.	EMPLOYEES 

  

	 	(a)	Labor Agreements and Actions. Neither the Company nor any of the Subsidiaries is bound by or subject to any contract, commitment or arrangement with any labor union, and, to
the Company’s best knowledge, no labor union has requested, sought or attempted to represent any employees, representatives or agents of the Company or any of the Subsidiaries. There is no strike or other labor dispute involving the Company or
the Subsidiaries pending nor, to the Company’s best knowledge, threatened. To the Company’s actual knowledge, no employee of the Company or any of the Subsidiaries is or will be in violation of any judgment, decree or order, or any term of
any employment contract, patent disclosure agreement, or other contract or agreement relating to the relationship of any such employee with the Company or any of the Subsidiaries, or any other party because of the nature of the business conducted by
the Company or any of the Subsidiaries, or to the use by the employee of his best efforts with respect to such business. 

  

	 	(b)	Employment Agreements and Compensation Arrangements. Neither the Company nor any of the Subsidiaries is a party to or bound by any currently effective employment contract
(other than contracts that can be terminated by not more than three months’ notice), deferred compensation agreement, bonus plan, incentive plan, profit sharing plan, retirement agreement or other employee compensation agreement.

  

	 	(c)	Status of Employees. To the Company’s best knowledge, no officer or key employee, or any group of key employees, intends to terminate their 

  

 Schedule 4-10 

	 	    	employment with the Company or the Subsidiaries, nor does the Company or any of the Subsidiaries have a present intention to terminate the employment of any of the foregoing.
Subject to general principles related to wrongful termination of employees, the employment of each officer and employee of the Company and the Subsidiaries is terminable by not more than three months’ notice by the Company or the Subsidiaries,
as the case may be. 

  

	 	(d)	Obligations of Management. Except for Richard Alan Wallis and Lam W. K., Hendrick, each officer of the Company or the Subsidiaries is currently devoting substantially all of
his or her business time to the conduct of the business of the Company or the Subsidiaries. The Company is not aware of any officer or key employee of the Company or the Subsidiaries, except for Richard Alan Wallis and Lam W. K., Hendrick, planning
to work less than full time at the Company or the Subsidiaries in the future. 

  

	 	9.	CLAIMS AND PROCEEDINGS 

  

	 	(a)	Litigation. 

  

	 	(i)	Neither the Company nor any of the Subsidiaries is engaged in or the subject of any litigation, arbitration or administrative or criminal proceedings (collectively,
“Litigation”), whether as plaintiff, defendant or otherwise. Neither any Shareholder nor any director or officer of the Company or any of the Subsidiaries is engaged in or are the subject of any Litigation, whether as plaintiff,
defendant or otherwise, which has had or may have an adverse effect on the Company or any of the Subsidiaries. 

  

	 	(ii)	No Litigation is pending, threatened or expected by or against the Company or any of the Subsidiaries, and, to the Company’s best knowledge, no Litigation that may have a
material adverse effect on the Company or any the Subsidiaries is pending, threatened or expected by or against any shareholder or any director or officer of the Company or any of the Subsidiaries. There are no facts or circumstances likely to give
rise to any Litigation against the Company or any of the Subsidiaries or, to the best knowledge of the Company, any such Litigation against any shareholder or any director or officer of the Company or the Subsidiaries in connection with the business
of the Company or any of the Subsidiaries. 

  

	 	(iii)	None of the Company, the Subsidiaries, any shareholder or any director or officer of the Company or the Subsidiaries is party to any undertaking or assurance given to any
Governmental Authority or the subject of any injunction relating to the Company’s or the Subsidiaries’ business which is still in force. 

  

	 	(b)	No Insolvency. No order has been made and no resolution has been passed for the winding up of the Company or any of the Subsidiaries or 

  

 Schedule 4-11 

	 	    	for a provisional liquidator to be appointed in respect of the Company or the any of the Subsidiaries and no petition has been presented and no meeting has been convened for the
purpose of winding up the Company or any of the Subsidiaries. No receiver has been appointed in respect of the Company or any of the Subsidiaries or all or any of their assets. Neither the Company nor any of the Subsidiaries is insolvent or unable
to pay its debts as they fall due. 

  

	 	10.	DISCLOSURE 

  

	 	(a)	No Misrepresentation. No representation, warranty or statement by the Company and the Founders in this Agreement, or in any Exhibit, Schedule, statement or certificate
furnished to the Investor pursuant to this Agreement, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements made herein, in light of the circumstances under which they were made, not
misleading. 

  

	 	(b)	Best Knowledge. Without limiting the generality of Clause 1.8, the phrase “best knowledge of the Company” means the best knowledge of the Company and the Founders
following reasonable inquiry. 

  

 Schedule 4-12 

 SCHEDULE 5 
  
 SELLING SHAREHOLDERS WARRANTIES 
  
 Each of the Selling Shareholders except for Philip Lai hereby jointly and severally represent and warrant to the
Investor that: 
  

	 	(1)	Each of the Selling Shareholders is the lawful, registered and beneficial owner of the relevant First Investment Sale Shares as set forth opposite his/her/its name in Schedule 1,
and holds full legal and beneficial ownership of the shares registered in such Shareholders’ names. No other person holds any rights to or over the Selling Shareholder Shares, including without limitation any right to the voting power, rights,
benefits, or the right to any economic benefit arising out of or in connection with the Selling Shareholder Shares; 

  

	 	(2)	Each of the Selling Shareholders does not have any claims against the Company, except for the loans extended to the Company as set forth below: 

  

				
	 Richard Alan Wallis
	  	US$	104,915.00
	 Lam W. K., Hendrick
	  	US$	27,170.00
	 Chiu Pak Yue, Leo
	  	US$	3,417.00

  
 Each of the above loan
amounts may vary from time to time by the Selling Shareholders’ advances to the Company for the Company’s needs, but in no event shall the total of the loan amounts listed above increase in aggregate by more than US$10,000. The above loan
amounts reflect the current interest-free account balances between the relevant Selling Shareholders and the Company as of the date hereof. 
  

	 	(3)	All First Investment Sale Shares are free and clear of all Encumbrances at the First Investment Date; 

  

	 	(4)	The delivery by each of the Selling Shareholders to the Investor of the First Investment Sale Shares, pursuant to the provisions of this Agreement, will transfer to the Investor
legal and beneficial ownership thereto, free and clear of all liens, charges, encumbrances, equities and adverse interests; 

  

	 	(5)	This Agreement, when duly executed and delivered by all the Parties hereto, will constitute a legal, valid and binding obligation of each of the Selling Shareholders, enforceable
against the Selling Shareholder in accordance with its terms; 

  

	 	(6)	The Selling Shareholders have obtained all the necessary waivers in order to allow for the sale of the First Investment Sale Shares and all other transactions contemplated under the
Basic Documents; 

  

	 	(7)	Any necessary consent, approval or authorization required for the valid authorization, execution and delivery of this Agreement by any of the Selling Shareholders or for their
performance of the terms hereof will have been obtained on or before the First Investment Date; 

  

 Schedule 5-1 

	 	(8)	No voting or similar agreements exist relating to Selling Shareholder Shares which are presently outstanding or that may hereafter be issued. None of the Selling Shareholders has
granted to any Person any right to cause any First Investment Sale Shares to be registered under the Securities Act of 1933 of the United States of America; 

  

	 	(9)	No representation or warranty by the Selling Shareholders contained in this Agreement or in any certificate furnished or to be furnished by the Selling Shareholders to the Investor
in connection with this Agreement or pursuant to this Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state any material fact necessary in order to make any statement contained in this Agreement or
in such certificate not misleading. 

  

 Schedule 5-2 

 SCHEDULE 6 
  
 INVESTOR WARRANTIES 
  

	(1)    (a)	The Investor is a company duly organized and existing under the laws of the Cayman Islands. 

  

	 	(b)	The Investor has the full power, authority and legal right to own assets and carry on its business. The Investor is not in receivership or liquidation and has taken no steps to
enter into liquidation, and no petition has been presented for the winding-up of the Investor. There are no grounds on which a petition or application could be based for the winding-up or appointment of a receiver of the Investor.

  

	(2)	The execution, delivery and performance of this Agreement by the Investor will not: 

  

	 	(a)	violate any provision of the organizational documents of the Investor; 

  

	 	(b)	require the Investor to obtain any consent, approval or action of, or make any filing with or give any notice to, any Governmental Authority or any other third party pursuant to any
agreement to which the Investor is a party or by which the Investor is bound; 

  

	 	(c)	conflict with or result in any material breach or violation of any of the terms and conditions of, or constitute (or with notice or lapse of time or both constitute) a default
under, any agreement to which the Investor is a party or by which the Investor is bound; 

  

	 	(d)	violate any court order, judgment, injunction, award, decree or writ against, or binding upon, the Investor or upon its securities, properties or business; or

  

	 	(e)	violate any law or regulation of the country where the Investor is incorporated or any other jurisdiction in which the Investor maintains a business presence.

  

	(3)	The Investor has the full power and authority to enter into, execute and deliver this Agreement and to perform the transactions contemplated hereby. The execution and delivery by
the Investor of this Agreement and the performance by the Investor of the transactions contemplated hereby have been duly authorized by all necessary corporate or other action of the Investor. Assuming the due authorization, execution and delivery
hereof by the other parties hereto, this Agreement constitutes the legal, valid and binding obligation of the Investor, enforceable against the Investor in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally. 

  

	(4)	The Investor understands that the acquisition of the First Investment Sale Shares involves substantial risk. The Investor (a) has experience as an investor in securities of
companies in the development stage and acknowledges that the Investor can bear the economic risk of its investment in the First Investment Sale Shares and has such knowledge and experience in financial or business matters that the Investor is
capable of evaluating the merits and risks of this investment in the First Investment Sale Shares and protecting its own interests in connection with this investment and/or (b) has a preexisting personal or business relationship with the Company and
certain of its officers, directors or controlling persons. 

  

 Schedule 6-1 

 SCHEDULE 7 
  
 LIST OF MATTERS TO BE COVERED BY 
 OPINION OF THE COMPANY’S BVI COUNSEL 
  

	 	(1)	The Company has been duly incorporated as a private limited company and is validly existing under the laws of the British Virgin Islands and has full power, authority and legal
right to own its assets and carry on its business. 

  

	 	(2)	The Company has the full power and authority to enter into, execute and deliver each of the Basic Documents to which the Company is a party and to perform the transactions
contemplated thereby. 

  

	 	(3)	The execution and delivery by the Company of each of the Basic Documents to which it is a party have been duly authorized by all necessary corporate or other action of the Company.

  

	 	(4)	Assuming the due authorization, execution and delivery thereof by the Investor, each of the Basic Documents to which the Company is a party will constitute the legal, valid and
binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally. 

  

	 	(5)	The execution, delivery and performance by the Company of each of the Basic Documents to which it is a party will not: 

  

	 	(a)	violate any provision of the Charter Documents; 

  

	 	(b)	require the Company to obtain any consent, approval or action of, or make any filing with or give any notice to, any governmental body in the British Virgin Islands, other than
those approvals and filings identified in Schedule 4 to this Agreement; or 

  

	 	(c)	violate any law or regulation of any Governmental Authority in the British Virgin Islands. 

  

	 	(6)	All of the Subscribed Shares have been duly authorized for issuance and, when issued and delivered by the Company against the consideration set forth in this Agreement, will be
validly issued, fully paid and non-assessable. 

  

	 	(7)	Based on the search with the Companies Registry in the British Virgin Islands, no legal action has been filed with or is pending against the Company in such courts.

  

 Schedule 7-1 

 SCHEDULE 8 
  
 LIST OF MATTERS TO BE COVERED BY 
 OPINION OF THE COMPANY’S PRC COUNSEL REGARDING 
 OBJECT SOFTWARE (BEIJING) CO., LTD. (THE
“COMPANY”) 
  

	(1)	The Company has been duly incorporated as a private limited company and is validly existing under the laws of PRC and has full power, authority and legal right to own its assets and
carry on its existing business. 

  

	(2)	The Letter of Approval 

, Certificate of Approval

 and Business License 

of the Company attached hereto as Appendix I, II and III respectively are authentic, valid and subsisting and all conditions stated in the Letter of Approval have been duly complied with.

  

	(3)	The Company has passed all joint annual inspection 

 since its incorporation. 

  

	(4)	The Company has the full power and authority to enter into, execute and deliver the Subscription and Purchase Agreement and all agreements referred to therein (a copy of which is
attached hereto as Appendix IV, the “Agreement”) and to perform the transactions contemplated thereby. 

  

	(5)	The execution and delivery by the Company of the Agreement have been duly authorized by all necessary corporate or other actions of the Company. 

  

	(6)	Assuming the due authorization, execution and delivery thereof by The9 Limited, the Agreement will constitute the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally. 

  

	(7)	The execution, delivery and performance by the Company of the Agreement will not: 

  

	 	(a)	violate any provision of its Articles of Association; 

  

	 	(b)	require the Company to obtain any consent, approval or action of, or make any filing with or give any notice to, any governmental body in PRC; or 

  

	 	(c)	violate any law or regulation of any PRC Governmental Authority. 

  

	(8)	All previous increases in the registered share capital, and all amendments to the Articles of Association, of the Company have been approved and validly registered with the
appropriate PRC Governmental Authority. 

  

	(9)	All material agreements and contracts governed by the laws of the PRC to which either the Company or Object Online is a party to or the subject of, are validly entered into and are
enforceable by or against the Company or Object Online, as applicable, in accordance with their terms. 

  

 Schedule 8-1 

	(10)	The Company and Object Online have obtained all requisite operation licenses and permissions from the appropriate PRC Governmental Authority that are necessary for the operation of
their respective businesses and for the sale of its products in PRC. 

  

	(11)	The Loan Agreement entered into in April 2000 for USD100,000 made between the Company as borrower and Object Software as lender is valid and subsisting, and has been duly registered
with the Beijing City Foreign Exchange Administration Bureau 

. 

  

	(12)	The Company is a qualified “Software Enterprise” under the Policies on Encouraging the Development of Software and IC
Industry                                      
                                        
                (

 and was issued with a valid and subsisting Software Enterprise Cognizance Certificate

issued by the relevant PRC Governmental Authority. 

  

	(13)	All game products of the Company and Object Online as listed on Appendix V hereto have been duly registered with the relevant PRC software enterprise cognizance organization
in accordance with the Software Products Management Method 

 of the PRC. 

  

	(14)	All game products of the Company and Object Online as listed on Appendix VI hereto have been duly registered with its provincial press and publishing bureau within 60 days
after establishment in accordance with the Electronic Publications Management Rules 

 of the PRC / none of the game products of the Company and Object Online is required to be registered under the Electronic Publications Management Rules. 

  

	(15)	The computer software copyrights registration certificates (as attached hereto as Appendix VII) in relation to four software, namely 

  

	1.	

 (Fate of the Dragon) 

 V1.0; 

  

	2.	

 V1.0 

 

  

	3.	

 V1.0; and 

  

	4.	

 V1.0 

 

  
 are valid
and subsisting. 
  

	(16)	The lease with Beijing Shiyou Industry and Trade Company 

 dated 1 April 2002 for the premises located at 35d Floor, Xingya Mansion, No. 63 North Avenue, 4th West Ring Road, Haidian District, Beijing, China 100089, is valid and subsisting, and all property leasing and other permits required by law have been obtained and registered/filed with the relevant Real Estate Management
Department

 if necessary. 

  

	(17)	The Company has paid all mandatory employees social and welfare benefits as required by the relevant PRC laws and regulations. 

  

	(18)	Object Online is duly incorporated under the laws of the PRC and is issued with a valid business license and an online game operation license. Mr. ZHANG Chun and Ms. LI Xiu-mei are
the only shareholders of Object Online and Li Xiu-mei is the sole director of that company 

  

 Schedule 8-2 

 SCHEDULE 9 
  
 LIST OF INDIVIDUALS REQUIRED TO 
 ENTER INTO THE SERVICE CONTRACT 
  

	 	1.	Zhang Chun, Persy 

	 	2.	Richard Alan Wallis 

	 	3.	Liu Gang 

	 	4.	Mao Haibin 

	 	5.	Kou Yujie 

	 	6.	Gao Feng 

	 	7.	Wang Ying 

	 	8.	Xu Wei Chuan 

	 	9.	Li Dong 

	 	10.	Liu Jing 

	 	11.	Liu Jiang 

	 	12.	Shen Yi 

	 	13.	Wu Bang Hai 

	 	14.	Liu Qian 

	 	15.	Cui Hai Qing 

	 	16.	Chen Xue Feng 

  

 Schedule 9-1 

 EXHIBIT A 
  

FORM OF SHAREHOLDERS AGREEMENT 
  

 Exhibit A-1 

 EXHIBIT B 
  

FORM OF COMPANY RESTATED ARTICLES 
  

 Exhibit B-1 

 EXHIBIT C 
  

FORM OF SHARE PURCHASE AGREEMENT 
  

 Exhibit C-1 

 EXHIBIT D 
  

FORM OF SERVICE CONTRACTS (3) 

 EXHIBIT E 
  

FORM OF THE NOTE 
  
 PROMISSORY NOTE 
  
 US$2,000,000.00 
 Date: April 16, 2004 
  
 FOR VALUE RECEIVED, The9 Limited, a company organized under the laws of the Cayman Islands
(“The9”), hereby promises to pay to the order of Object Software Limited, a company organized under the laws of the British Virgin Islands (“Object”), US$2,000,000 (the “Note Amount”). The Note
Amount shall be paid in full by The9 to Object on May 16, 2004 (the “Payment Date”), and no interest shall accrue or be payable on the Note Amount. The Note Amount shall be payable in Renminbi, the lawful currency of the
People’s Republic of China, to be converted at the then prevailing US$-RMB exchange rate quoted by the People’s Bank of China as at the Payment Date, and in immediately available funds. 
  
 This Promissory Note shall be governed by and construed in accordance with the laws of the
Hong Kong Special Administrative Region of the People’s Republic of China. 
  

			
	The9 Limited
		
	By:	 	  

	Name:	 	 
	Title:

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