Common use of Variable Interest Entities Clause in Contracts

Variable Interest Entities. The Company controls its variable interest entities, 1Verge Information Technology (Beijing) Co., Ltd., Jiheyi Ad (Beijing) Co., Ltd., Beijing Miyu Cultural Diffusion Co., Ltd., Quan Toodou Network Science and Technology Co., Ltd., Shanghai Licheng Cultural Communications Co., Ltd., Shanghai Quan Toodou Cultural Communication Co., Ltd., Beijing Tixian Digital Science and Technology Co., Ltd. and Zhejiang Dongyang Tianshi Cultural Media Ltd., through a series of contractual arrangements, and there is no enforceable agreement or understanding to rescind, amend or change the nature of such captive structure or material terms of such contractual arrangements.