Filed by Bowne Pure Compliance





Exhibit 4.85




EQUITY TRANSFER AGREEMENT




among




Liang Ruan




Yuqi Shi




And




Shanghai Saiyu Information Technology Co., Ltd.




Jie Li




Jiamei Wan




12 February, 2007



 


 









 





Equity Transfer Agreement




This Equity Transfer Agreement (“this Agreement”) is entered into by the following parties on
[  ] [  ], 2007, in Beijing, People’s Republic of China.



Party A: Liang Ruan




Identification Number: 360403197312260018




Party B: Yuqi Shi




Identification Number:



(hereinafter referred to as the “Transferee”)




Party C: Jie Li




Identification Number:



Party D: Jianmei Wan




Identification Number:



(hereinafter referred to as the “Transferor”, and together with the Transferee, as the “Parties”)



Target Company: Shanghai Saiyu Information Technology Co., Ltd.



Registered Address: Suite 206-P, Pucang Road 485, Qingpu District, Shanghai




Legal Representative: Jie Li




Business Registration Number: 3102292095806



 


1









 





WHEREAS





	1.	 	Shanghai Saiyu Information Technology Co., Ltd. (“Shanghai Saiyu”) is a limited liability
company duly incorporated and existing under the laws of People’s Republic of China. The Henan
Yinshan’s register capital is RMB10 million, in which Party C holds 70% equity interest, and
Party D holds 30% equity interest. As of the date as set forth in this Agreement, the Sellers
are joint controlling sharehoders of the Henan Yinshan for their capital contribution

	 
	2.	 	Both Party A and Party B are PRC citizens with full capacity of civil conduct, and jointly
wish to accept the 100% equity interest of Shanghai Saiyu from the Transferees.

	 
	3.	 	The Transferors wish to transfer the 100% equity interest of Shanghai Saiyu to the
Transferees, in which, Party C shall transfer 50% equity interest to Party A, and 20% equity
interest to Party B. Party D shall transfer 30% equity interest to Party B. Upon the closing
of the transaction, Party A shall own 50% equity interest of Shanghai Saiyu, and Party B shall
own 50% equity interest of Shanghai Saiyu.






NOW, THEREFORE, the Parties enter into the following agreement through amicable negotiations in the
spirit of mutual benefit and good faith, and pursuant to the relevant laws and regulations:



Article 1 Equity Transfer





	1.	 	The Transferor hereby agrees to transfer, pursuant to the terms and conditions hereunder,
all of its 100% equity interest in Shanghai Saiyu to the Transferee on the Effective Date of
Transfer (defined below) described in Article 3, and the Transferee hereby agrees to accept
such transfer pursuant to the terms and conditions hereunder (the “Equity Transfer”).

	 
	2.	 	From the Effective Date of Transfer under Article 3 hereof, the Transferee shall become
the lawful owner of the transferred equity interest pursuant to the terms and conditions
hereunder, enjoy and bear all the rights and obligations in connection with the transferred
equity interest (including all the rights, interests and obligations relating to its
investment); the Transferor shall cease to enjoy any rights, or bear any obligations, in
connection with the transferred equity interest, except as otherwise provided hereunder.

	 
	3.	 	From the Effective Date of Transfer, the Transferee shall own the following capital
contribution and percentage in the registered capital:

	 
	 	 	Party A: RMB 5,000,000, own 50% equity interest of Shanghai Saiyu registered capital

	 
	 	 	Party B: RMB 5,000,000, own 50% equity interest of Shanghai Saiyu registered capital





 


2









 





Article 2 Equity Transfer Price and Method of Payment





	1.	 	The Equity Transfer Price for the share shall be RMB 10,000,000 and the payment
schedule shall be as follows:







	 	( 1 )	 	The initial payment of 40% shall be paid to the designated account of
the Transferor through bank transfer within five (5) working days from the Effective
Date of Transfer;

	 
	 	( 2 )	 	The second payment of 10% shall be paid to the designated account of the
Transferor through bank transfer within five (5) working days after the following
pre-requisite terms as follows:







	 	a)	 	Both parties agree that the Transferor shall, within twenty
(20) business days after the equity transfer hereunder has been approved by the
original approval authority of Shanghai Saiyu and the amended foreign-invested
enterprise approval certificate has been issued, complete the formalities for
amended industrial and commercial registration at the relevant industrial and
commercial authority.

	 
	 	b)	 	Shanghai Saiyu has undergone no unfavorable changes in its
business, operation, properties, prospects and assets;

	 
	 	c)	 	All the representations, warranties and covenants of the
Transferor under Article 4 hereof are true and accurate as of the Execution
Date hereof and the Effective Date of Equity Transfer, as if such
representations and warranties are made as of the Execution Date and the
Effective Date of Equity Transfer (except for such representations and
warranties that are made at a specific date and are required to be true and
accurate only at such date);

	 
	 	d)	 	The Transferor has terminated all employment contracts with the
existing staff of Shanghai Saiyu and has completed all necessary procedures,
and shall be hold liable for any expenses (including without limitation
reimbursement, penalties, social security expenses, and etc.)







	 	( 3 )	 	The third payment shall be paid within five (5) business days after the
Transferor has entered into formal agreements with China Mobile Communications Group
Corporation in connection with all services (including IVR, SMS, MMS, and WAP)
provided by Shanghai Saiyu, and . The amount of
such payment shall be determined in the following manner:





 


3









 






	 	( 4 )	 	The fourth payment of 30% shall be paid to the designated account of the
Transferor through bank transfer in the event that:







	 	a)	 	Shanghai Saiyu has provided services online for one (1) year;

	 
	 	b)	 	Perform in strict compliance with the relevant rules and
regulations in connection with the Monternet services of China Mobile
Communications Group Corporation and the Ministry of Information Industry;

	 
	 	c)	 	Satisfy the assessment standards of new business operation;

	 
	 	d)	 	Successfully renews all formal agreements in connection with
services including IVR, SMS, MMS, and WAP with China Mobile Communications
Group Corporation.







The fourth payment shall be paid upon the effective signing date of the above
various service agreements (in the event that different effective signing date in
various service agreement, the last effective signing date shall be the effective
payment date). In the event of Shanghai Saiyu unable to successfully renew
agreements with mobile operators due to any unpredictable and inevitable significant
changes of the relevant policies of government authorities and mobile operators, the
fourth payments shall still be paid to the Transferor.




	 	( 5 )	 	Either the Transferors or the Transferees shall promptly, but in no
event later than the third business day after they have learned that any of the
above Preconditions has been satisfied, notify the other party of such satisfaction
and provide written evidence thereof (such as photocopies of relevant approvals or
filed documents).

	 
	 	( 6 )	 	All the Preconditions listed in Article (3) shall be satisfied as a
whole within six (6) months upon execution hereof. In the event that any of the
Preconditions set forth above has failed to be satisfied in the specified in the
specified time limit, both Parties agree to engage in further negotiations on this
issue to resolve this matter.

	 
	 	( 7 )	 	According to all the services (including IVR, SMS, MMS, WAP) in
connection with the formal agreement entered by the Company and the mobile operators
as set forth under Article 3 (a), in the event that the Information Fee of each
business line is lower than the Information Fee as set forth under the Appendix 1 of
this Agreement, the Transferee shall have the right to lower the total consideration
of this Agreement and renegotiate with the Transferor, or the Transferee shall have
the right to terminate this Agreement without any prior
consent from the Transferee. This Agreement shall promptly terminate after the
Transferee issue a written termination agreement to the Transferor, and the
Transferor shall promptly pay back the Transferee considerations in one payment
received from the Transferee.





 


4









 






	 	( 8 )	 	The designated bank account details of the Transferor are as follows:

	 
	 	 	 	Name of Bank: Construction Bank of China Beijing Branch Haidian Sub-branch

	 
	 	 	 	Account Number: 4367420011190071124

	 
	 	 	 	Name of Account: Jianmei Wan






Article 3 Balance Sheet Date





	1.	 	Upon the Effective Date of Transfer of this Agreement, both Parties shall negotiate the detail
date of the Balance Sheet Date. Upon Balance Sheet Date, both Parties shall enter into the formal
financial hand over procedures.






Article 4





	1.	 	The Transferor shall, within twenty (20) business days after the equity transfer hereunder
has been approved by the original approval authority of Shanghai Saiyu and the amended
foreign-invested enterprise approval certificate has been issued, complete the formalities for
amended industrial and commercial registration at the relevant industrial and commercial
authority, and the Transferee shall assist the Transferor in completing such formalities. The
amendment of industrial and commercial registration shall include the following:







	 	a)	 	Completion of registration amendment in connection with the equity transfer, the
registered shareholder shall be changed from the Transferor to the Transferee;

	 
	 	b)	 	Completion of the amendment to registration of the directors and legal
representative, appointing Shi Yuqi as the director and legal representative;

	 
	 	c)	 	Completion of the amendment to registration of the General Manager of the company,
appointing Shi Yuqi as the General Manager;

	 
	 	d)	 	Completion of the amendment to registration of the chairman of supervisor,
appointing Liu Juanmei as the chairman of supervisor;

	 
	 	e)	 	Completion of registration of the amended articles of association.







	2.	 	The Transferor shall promptly notify the Transferee upon receipt of the notice about
completion of the formalities issued by the industrial and commercial administration, and the Transferee
shall get all the documents for the completed amended industrial and commercial registration
within three (3) business days after receipt of the notice from the Transferor. The amended
industrial and commercial registration in this Article shall be finally completed after the
Transferee has received all the documents.







	3.	 	The materials required by the industrial and commercial administration provided by the
Transferor shall be authentic and valid, and satisfy the requirements of the industrial and
commercial administration.





 


5









 





Article 5 Representations, Warranties and Covenants of the Transferor





	 	1.	 	Shanghai Saiyu is a wholly foreign owned limited liability company duly established
and effectively existing under the PRC laws;

	 
	 	2.	 	The Transferor has all the necessary rights, powers and capacities to execute and
perform all the duties and obligations hereunder, and this Agreement shall constitute its
legal, valid and binding obligations after execution hereof.

	 
	 	3.	 	The Transferor has the legal and actual ownership to the equity interest to be
transferred hereunder, has the capacity for rights and actions in connection with the
equity transfer, and has obtained all the necessary approvals other than the approval
from the original approval authority of Shanghai Saiyu regarding the equity transfer
hereunder.

	 
	 	4.	 	The execution and performance of this Agreement by the Transferor do not contravene
any law, articles of association, contract, agreement or other legal documents binding on
the Transferor.

	 
	 	5.	 	There exists no pledge, preferential right or third party’s rights and interests in
any form, or any encumbrance.

	 
	 	6.	 	The transferor agreed to give up the preemptive right arising from the equity
transfer under this Agreement.

	 
	 	7.	 	The information contained in the due diligence and other materials of Shanghai
Saiyu delivered to the Transferee by the Transferor are complete, true and accurate.

	 
	 	8.	 	The transferors warrant that Shanghai Saiyu is duly qualified to operate its main
business within its existing business scope and owns a valid Multi-Area Value-Added
Telecom Business Operation License which has been duly acquired and is valid; the
Transferors will not unilaterally take any action that would impair Shanghai Saiyu’s
existing business eligibility or any part thereof.

	 
	 	9.	 	As of the Execution Date, Shanghai Saiyu does not have any outstanding shareholders
resolutions and documents other than the shareholder resolutions and documents that have
been disclosed by the Transferors to the Transferees. Shanghai Saiyu does not have any
valid resolutions or document of the board/ acting board since established.





 


6









 





	 	10.	 	As of the Execution Date, Shanghai Saiyu does not have any other liabilities
(“Undisclosed Liabilities”). If any Undisclosed Liabilities exist, the Transferors shall
be fully liable for repayment of such liabilities. In the event of any loss to the
Transferees or Shanghai Magma resulting from the Undisclosed Liabilities, the Transferors
shall indemnify the loss in full amount. As of the Execution Date, Shanghai Saiyu has not
violated any material aspect of laws relating to taxes, employees, insurance and
property; has never suffered any administrative penalties or penalties imposed by mobile
operators, and will not be subject to such penalties in the future due as a result of any
action to date; and there does not exist any actual or threatened lawsuit.

	 
	 	11.	 	As of the Execution Date, Shanghai Saiyu does not have any outstanding contract,
agreement or binding document other than the contracts, agreements and documents that
have been disclosed by the Transferors to the Transferees.

	 
	 	12.	 	Business Code, fee standards, and other information provided by the Transferors to
the Transferees is true and correct in all material aspects.

	 
	 	13.	 	The Transferors warrant that they explicitly understand that the purpose of the
Transferees for executing this Agreement is to carry out Java and WAP business
nationwide. The Transferors warrant that they will perform this Agreement in good faith
and in all aspects to cause such purpose to be achieved. The Transferors warrant that,
prior to handover of the company, they will promptly notify the Transferees of any event
coming to their attention that might affect the contract purpose (including without
limitation to changes in policies of operators and any event occurred in the process of
preparation and filing, which is unpredictable at the time of execution hereof, etc.),
and consult with the Transferees in good faith to work out countermeasures.

	 
	 	14.	 	Except the prior written consent of the Transferees has been acquired, the
Transferors warrant that, as from the Execution Date till the Equity Transfer Closing
Date:







	 	1)	 	Shanghai Saiyu will remain in normal operation, and will send a
notice to the Transferees to seek approval therefrom two (2) days prior to
disbursement of any expenditure at or higher than RMB10, 000;

	 
	 	2)	 	No significant change (including without limitation the assignment or
creation of any encumbrance or third parties’ rights) as to financial condition,
status or prospect and the value and structure of assets or liabilities of
Shanghai Saiyu will take place;

	 
	 	3)	 	Shanghai Saiyu will not change its equity structure and articles of
association;

	 
	 	4)	 	Shanghai Saiyu shall use its best efforts to ensure that operation of
Shanghai Magma be free from any negative influence.







	 	15.	 	All statements, representations and warranties made by the Transferors hereunder
are true and correct.





 


7









 





Article 6 Representations, Warranties and Covenants of the Transferee





	1.	 	The Transferee is a legal person duly established and effectively existing under the PRC
laws;

	 
	2.	 	The Transferee has the full rights to carry out the activities in connection with the equity
transfer hereunder, and has obtained all the approval and/or authorization necessary for the
execution and performance of this Agreement.

	 
	3.	 	The execution and performance of this Agreement by the Transferee do not contravene any law,
articles of association, contract, agreement or other legal documents binding on the
Transferee.

	 
	4.	 	This Agreement and the equity transfer have been approved by the relevant Ministry of
Information Industry and the Industrial and Commercial authority;

	 
	5.	 	The Transferee shall perform its obligations of paying the Equity Transfer Price to the
Transferor in strict compliance with the provisions hereof;

	 
	6.	 	Upon the completion of industrial and commercial registration in connection with the equity
transfer hereunder, the Transferee shall replace any content (such as pictures, songs, and
etc.) applied by the Transferors for use of business, and shall duly resolve the copyrights of
the replaced content thereafter.

	 
	7.	 	The Transferees shall be responsible for filing the registration of the industrial and
commercial authority, the annual inspection of the industrial and commercial authority,
ministry of information industry, and the relevant work in connection with the annual
inspection of the Multi-Area Value-Added Telecom Business Operation License, and shall be hold
liable for all relevant expenses in connection with the filing above. The Transferors shall
provide assistance.

	 
	8.	 	The Transferees agree that all revenue as of February 2007 received from the WAP services
provided to Shanghai district is own by the Transferor. The Transferee shall transfer the
relevant actual revenue as per received from the mobile operators to the Transferor, and shall
deduct the relevant tax of the Company and personal income tax of the Transferor before
payment.





 


8









 





ARTICLE 7: Confidentiality




Without the written approval of the other Parties, neither Party shall disclose the relevant
content of this Agreement to any third parties other than the Parties hereto (not including the
affiliates of the Parties and the professionals engaged by the Parties) prior to the Closing Date
hereunder, except as explicitly required under the relevant PRC laws and regulations, relevant
articles of association, or other applicable PRC laws and regulations.



Article 8 Expenses




The Transferors and the Transferees shall each be responsible for their respective taxes incurred
in the equity transfer hereunder according to law.



Article 9 Issues not Mentioned




All the Parties agree to engage in further negotiations on issues not mentioned herein, and enter
into supplemental agreement in writing, after the execution of this Agreement. The supplemental
agreement shall constitute an integral part of this Agreement.



Article 10 Liabilities for Breach





	 	1.	 	A Party hereto shall constitute a breach of this Agreement if such Party:







	 	(1)	 	fails to perform any obligations hereunder;

	 
	 	(2)	 	Violates any representations, warranties and covenants hereunder;

	 
	 	(3)	 	Makes any false or misleading representations and warranties hereunder (either in
good faith or bad faith).







	 	2.	 	In the event of any breach of this Agreement as set forth above, the Party that is
not hold liable shall have the right to request the Party hold liable to resolve the
breach within thirty (30) days. In the event that the Party hold liable cannot resolve
the breach within the time limit, the Party that is not hold liable shall have the right
to terminate this Agreement, and the other Party shall indemnify any loss incur by the
Party that is not hold liable.





 


9









 





Article 11 Dispute Resolution




Any dispute arising from or in connection with this Agreement shall be resolved by the Parties
through amicable consultation. If the Parties cannot resolve the dispute through amicable
consultation within sixty (60) days after the occurrence thereof, such dispute shall be submitted
for arbitration at the China International Economic and Trade Arbitration Commission according to
its then effective arbitration rules. The arbitration award shall be final and binding upon the
Parties. The location of arbitration shall be in Beijing.



Article 12 Governing Laws




The formation, validity, interpretation, performance and dispute resolution of this Agreement
shall be governed by the PRC laws.



Article 13 Contractual Rights




Neither Party shall assign its rights hereunder without the prior written consent of the other
Party. This Agreement shall be binding and inure to the benefit of the successors and approved
assignees of the Parties hereto.



Article 14 Force Majeure





	 	1.	 	For the purpose of this Agreement, “force majeure” event refers to any event beyond
the reasonable control of the Parties that can not be predicted (or can be predicted but
cannot be avoided) by the Parties hereto, which event has caused failure of any Party
hereto to perform any or all terms and conditions of this Agreement, including without
limitation natural disasters such as earthquake, typhoon, flood, fire and other natural
disasters, war, riot, strike or any other similar incidents. The Parties hereto acknowledge and agree,
the non-performance by either Party of this Agreement due to force majeure event shall
not constitute a breach in subsection 1 of Article 11 hereof, and the Party affected
shall not be liable for any compensation or indemnity thereto.

	 
	 	2.	 	The Party affected by the force majeure event shall immediately notify the other
Party of the occurrence of force majeure event via the most rapid means of communication
available, and provide the other Party with documents specifying the details of the event
and the reason for the non-performance, partial non-performance for delay of performance
of this Agreement, and the Parties shall negotiate whether to postpone the performance of
this Agreement or terminate this Agreement.





 


10









 





Article 15 Entire Agreement




This Agreement constitutes the entire representations and agreement between the Parties and
supersede any oral or written representations, warranties, understandings and agreements concerning
the subject matter hereof between the Parties prior to the execution hereof. The Parties
acknowledge and agree, any representations or warranties not explicitly included herein shall not
constitute the basis of this Agreement, nor constitute the basis for the determination of the
rights and obligations of the Parties and the construction of the terms and conditions hereof.



Article 16 Notice




Any notice hereunder shall be in written form, in Chinese language, and delivered via
registered mail, fax or other electronic means of communication. A notice shall be deemed to be
duly given when it is delivered to the registered address of the receiving Party. If the notice is
sent by registered mail, it shall be deemed to have been duly given on the date shown on the
receipt thereof. If the notice is transmitted by facsimile, it shall be deemed to have been duly
given on the date of receipt of the transmission confirmed by receipt of a transmittal
confirmation.



Transferees: Liang Ruan



Address: 15/F, Tower B, Gateway Plaza, No.18 Xia Guang Li, North Road, East Third Ring Chaoyang
District, Beijing, 100027 P.R.China



Zip Code:



Tel.: 010 - 8455-5566



Fax:



Attention:



Transferors: Jianmei Wan



Address: 206-P, Fucang Road 485, QingFu District, Shanghai



Zip Code:



Tel.: 13910711990



Fax:



Attention:


 


11









 





Article 17 Language




This Agreement shall be written in Chinese language in six (6) originals, with each Party
holding one (1) original thereof, the remaining shall be filed for approval and the industrial and
commercial registration, each of which shall have equal legal validity.



Article 18 Supplemental Agreement or Exhibits




The supplements or revisions to this Agreement agreed upon and duly executed by the Parties
shall be attached as the Exhibits hereto, constituting an integral part hereof.


 


12









 





SIGNATURE PAGE




In Witness Whereof, the Parties have executed this Agreement on the date first shown above.



Party A: Ruan Liang




Party B: Shi Yuqi




Party C: Li Jie




Party D: Wan Jianmei





 


13