Document:

EX-4.45 SHARE PURCHASE AGREEMENT

 

Exhibit 4.45

SPA for Canadian Investors

SHARE PURCHASE AGREEMENT

CERTAIN SHAREHOLDERS

(as listed in Exhibit A hereto)

- and -

GIGAMEDIA CHINA LIMITED

January 17, 2007

 

 

SHARE PURCHASE AGREEMENT

     This Share Purchase Agreement (this “Agreement”), dated as of January 17, 2007, is entered
into and made by and among

     Certain shareholders of T2CN Holding Limited (“Company”) as identified in Exhibit A hereto,
and

     GIGAMEDIA CHINA LIMITED, a limited liability company organized and existing under the laws of
the British Virgin Islands (the “Purchaser”), and

     (The above shareholders shall be referred to collectively as the “Selling Shareholders”, and
individually as “Selling Shareholder”).

     WHEREAS,

     (i) The Company is a limited liability company duly organized and existing under the laws of
the British Virgin Islands, and has issued 45,448,001 Ordinary Shares (as hereinafter defined) and
10,500,000 preferred shares;

     (ii) Each of the Selling Shareholders holds the number of Ordinary Shares of the Company as
specified in Exhibit A on the date hereof and wishes to sell all such shares (the “Purchase
Shares”) to the Purchaser, and the Purchaser wishes to purchase from each of the Selling
Shareholders the Purchase Shares, subject to the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises set forth above, the mutual covenants and
agreements set forth herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1 DEFINITIONS

     Unless otherwise defined in this Agreement or the November 25, 2006 Shareholders’ Agreement,
capitalized terms used herein shall have the following meanings:

     “Domestic ICP Enterprise” means Shanghai T2 Entertainment Co., Ltd.
(), a domestic Chinese limited liability company registered in Shanghai
to engage in value-added telecommunications services.

     “GIGAMEDIA” means GigaMedia Limited, a company listed on the NASDAQ and the parent company of
the Purchaser.

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     “Happy Digital” means a company established in Chengdu City with the Chinese name of

“”.

     “MAA” means the Amended and Restated Memorandum and Articles of Association of the Company
dated on November 12, 2006.

     “New Articles” means the Amended and Restated Memorandum and Articles of Association of the
Company, in form and substance to be agreed upon by the Company, the Purchaser, the Selling
Shareholders, other existing shareholders (together with the Selling Shareholders, the “Existing
Shareholders”) of the Company and certain other parties thereto.

     “New Shareholders’ Agreement” means the Amended and Restated Shareholders’ Agreement of the
Company, among the Company, the Purchaser, other Existing Shareholders and certain other parties
thereto, in form and substance to be agreed upon by the parties thereto.

     “Net Operating Income” as used in this agreement shall mean the Company’s net income in U.S.
dollars as defined in U.S. GAAP and ascertained by the Purchaser, with the following adjustments:
(1) adding back non-cash option based compensation to employees and executives of the Company; (2)
normalizing the game license fee for the online game Aeronaut paid by the Company to JC
Entertainment Corporation during the 1st half of 2007, as if such license fees were all capitalized
and amortized over the duration of the relevant license agreement; and (3) the sum of the net
income so calculated after taking account of the above items (1) and (2) multiplying by a fraction,
the numerator of which shall be the total number of the issued and outstanding Ordinary Shares and
preferred shares of the Company as at the execution date of this Agreement and the denominator of
which shall be the aggregate number of the issued and outstanding Ordinary Shares and preferred
shares of the Company on June 30, 2007 excluding (i) 300,000 shares reserved for the
acquisition of Happy Digital as agreed upon in the November 25, 2006 Shareholders’ Agreement and
the MAA; and (ii) any additional preferred shares issued based on 2006 Accounts (as defined
therein) of the Company as agreed upon in Article XV of the November 25, 2006 Shareholders’
Agreement.

     “November 25, 2006 Shareholders’ Agreement” means the Amended and Restated Shareholders’
Agreement of the Company, dated November 25, 2006, among the Company, the Existing Shareholders and
certain other parties thereto.

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

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SECTION 2 AGREEMENT TO PURCHASE AND SALE

     2.1 Agreement to Purchase and Sale. Subject to the terms and conditions of
this Agreement, the Purchaser shall purchase the Purchase Shares from each of the Selling
Shareholders for a price as ascertained in Section 2.2 hereof.

     2.2 Purchase Price. The total purchase price for each of the Selling Shareholders
(“Purchase Price”) shall be the purchase price per Purchase Share multiplying by the number of the
Purchase Shares to be sold by such Selling Shareholder, and the purchase price per Purchase Share
shall be

          (i) US$1.05 if the Net Operating Income for the first half of 2007 is not more than US$
1,000,000;

          (ii) US$1.25 if the Net Operating Income for the first half of 2007 is US$ 1,500,000; or

          (iii) US$1.45 if the Net Operating Income for the first half of 2007 is not less than US$
2,500,000.

          The Purchase Price per Purchase Share should be adjusted on a pro rata basis if the Net
Operating Income for the first half of 2007 falls between the above 3 threshold amounts. By way of
example, if the Net Operating Income for the first half of 2007 is more than US$ 1,000,000 but less
than US$ 1,500,000, the Purchase Price per Purchase Share shall be the sum of (0.4 multiplying by
the amount of the Net Operating Income for the first half of 2007 and then divided by 1,000,000)
and US$ 0.65; if the Net Operating Income for the first half of 2007 is more than US$ 1,500,000 but
less than US$ 2,500,000, the Purchase Price per Purchase Share shall be the sum of (0.2 multiplying
by the amount of the Net Operating Income for the first half of 2007 and then divided by 1,000,000)
and US$ 0.95.

     2.3 Payment of the Purchase Price. The Purchase Price payable to each of the
Selling Shareholders by the Purchaser shall be paid in the following two installments:

          (i) Subject to the terms and conditions under this Agreement, the first installment of the
Purchaser Price (as specified in Exhibit A attached hereto) payable to each of the Selling
Shareholders (“First Installment”) shall be paid in cash by the Purchaser at the Closing.

          (ii) Subject to the terms and conditions under this Agreement, the remaining Purchase Price
payable to each of the Selling Shareholders (“Second Installment”) shall be paid in cash on August
15, 2007.

          The Selling Shareholders hereby authorize [Mr. Bryan M. Dear] to receive any and all Purchase
Price payable to it/him by the Purchaser. Upon remittance of the Purchase Price due and payable to
a Selling Shareholder to an account designated by [Bryan M. Dear] in writing, which designation
shall be instructed to the Purchaser fourteen (14) days prior to the respective dates of payment,

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the Purchaser shall be deemed having performed its payment obligation to such Selling
Shareholder.

SECTION 3 CLOSING; DELIVERY

     3.1 Closing. The transfer of the Purchase Shares (the “Closing”) shall take
place at the offices of the Company, 12th Floor, Xingyuan Technology Plaza, No. 418
Guiping Road, Shanghai 200233, China, on February 12, 2007 (the “Closing Date”), or at such other
place and time as the parties hereto may mutually agree. Upon the Closing, all the rights and
benefits attached to and in relation to the Purchase Shares (including but not limited to the
dividends attributable to the Selling Shareholders in respect of any and all Purchase Shares if
any) shall be transferred from the Selling Shareholders to the Purchaser.

     3.2 Delivery at the Closing. At the Closing, each of the Selling shareholders
shall, through their representative Mr. Bryan M. Dear, deliver the following items to the
Purchaser:

          (i) The total Purchase Shares, together with duly issued share certificates of the total
Purchase Shares in the name of the Purchaser;

          (ii) A compliance certificate, signed by such Selling Shareholder, certifying that all
the representations and warranties of such Selling Shareholder hereunder are true, correct and
complete, and all the conditions hereunder have been fulfilled;

          (iii) An unaudited financial balance sheet, cash flow statement and profit and loss
statement of the Company for the full year of 2006 and an unaudited balance sheet, and profit and
loss statement of the Company dated as of January 31, 2007, which shall be satisfactory in form and
substance to the Purchaser.

          At the Closing, the Purchaser shall pay the First Installment to [Mr. Bryan M. Dear] against
receipt of all deliverables under items (i) through (iii) of Section 3.2 hereof. On the date of
receipt of the First Installment, Mr. Bryan Mr. Dear shall, on behalf of each of the Selling
Shareholders, issue a written receipt acknowledging such receipt to the Purchaser.

SECTION 4 REPRESENTATIONS AND WARRANTIES OF THE SELLING SHAREHOLDERS

     Each of the Selling Shareholders hereby represent and warrant to the Purchaser that the
statements in this Section 4 are all true, correct and complete as of the date hereof, as of the
Closing Date and, to the best of it/hisknowledge, as of the payment date of the Second Installment:

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     4.1 Organization, Good Standing and Qualification. The Company is duly organized,
validly existing and in good standing under, and by virtue of, the laws of the British Virgin
Islands and has all requisite power and authority to own its properties and assets and to carry on
its business as now conducted and as proposed to be conducted. The Company is qualified to do
business and is in good standing in each jurisdiction where failure to be so qualified would have
an adverse effect on its financial condition, business, prospects or operations, or otherwise.

     4.2 Capitalization. Immediately prior to the Closing, the authorized shares of the
Company shall consist of the following:

     (i) Ordinary Shares. A total of 55,000,000 authorized Ordinary Shares of
which 45,448,001 shares are issued and outstanding.

     (ii) Preferred Shares. A total of 25,000,000 authorized preferred shares, of
which 10,500,000 shares are issued and outstanding.

     (iii) Options, Warrants, Reserved Shares. Except for (a) the conversion privileges
of the said Preferred Shares, (b) the preemptive rights provided in the November 25, 2006
Shareholders’ Agreement, and (c) 5,180,000 Ordinary Shares reserved for the Company’s employee
ownership plans approved by the Board of directors of the Company, (d) 300,000 Ordinary shares
reserved for the acquisition of Happy Digital as agreed upon in the November 25, 2006 Shareholders’
Agreement and the MAA, there are no options, warrants, conversions privileges or other rights or
agreements outstanding or under which the Company is or may become obliged to issue any securities
of any class or series except as set forth above. Apart from the exceptions noted in this Section
4.2, none of the Company’s outstanding shares, and no shares issuable upon exercise, conversion, or
exchange of any outstanding options or other shares issuable by the Company, are subject to any and
all liens, security interests, adverse claims, charges or encumbrances (collectively “Liens”),
preemptive rights, rights of first refusal, or other rights to purchase such shares (whether in
favor of the Company or any other person).

     4.3 Valid Issuance of Purchase Shares. The Purchase Shares have been duly authorized
and validly issued and are fully paid and non-assessable, accounting for respective percentages of
the total issued and outstanding shares of the Company as specified in Exhibit A hereto and free
and clear of any and all Liens. The Selling Shareholder is the true and lawful owner of the
Purchase Shares with the full and valid title to any and all Purchase Shares.

     4.4 Due Authorization. All actions by the Company and such Selling Shareholder and,
as applicable, their respective officers, directors and shareholders necessary for the
authorization, execution and delivery of, and the performance of any and all obligations of the
Company and such Selling Shareholder under this Agreement and all other agreements, instruments and
documents executed and delivered in connection with the transactions contemplated hereby (the
“Ancillary Agreements”), has been taken or will be taken prior to the Closing. This Agreement

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and the Ancillary Agreements, when executed and delivered by such Selling Shareholder, are
valid and legally binding obligations of such Selling Shareholder, subject, as to enforcement of
remedies, to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws
affecting creditors’ rights generally and to general equitable principles.

     4.5 No Conflicts. The execution and delivery of this Agreement and any and all
Ancillary Agreements by such Selling Shareholder and the performance of its/his obligations
hereunder and thereunder will not result in (i) any conflict with the memorandum and
articles of association of such Selling Shareholder (if any) and the Company, (ii) any
breach or violation of, conflict with or default under any law, statute, regulation, judgment,
order, decree, license, permit or other governmental authorization or any mortgage, lease,
agreement, deed of trust, indenture or any other instrument to which any of the Selling Shareholder
or the Company is a party or by which such Selling Shareholder or the Company or their respective
properties or assets are bound, or (iii) the creation or imposition of any Liens against
the Company.

     4.6 Financial Statements. Exhibit B hereto sets forth an unaudited combined balance
sheet and income statements of the Company (the foregoing financial statements and any notes
thereto are hereinafter referred to as the “Financial Statements”) as of November 30, 2006 (the
“Balance Sheet Date”). Such Financial Statements (a) accord with the books and records of the
Company, (b) are true, correct and complete and present fairly the financial condition of the
Company as of the date or dates therein indicated and the results of operations for the period or
periods therein specified, and (c) have been prepared in accordance with US generally accepted
accounting principles applied on a consistent basis. Other than expressly disclosed in the
Financial Statements, the Company does not have, directly or indirectly, material actual or
contingent liabilities in any nature whatsoever.

     4.7 Activities since Balance Sheet Date. Since the Balance Sheet Date, there has
been no material change in the Company, including but not limited to its assets, liabilities,
financial condition and operating results.

     4.8 Disclosure. The Selling Shareholder has provided the Purchaser with all
information needed for the Purchaser to decide whether to purchase the Purchase Shares. There has
been no omission of any material facts or misrepresentation of any statement herein.

SECTION 5 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

     The Purchaser hereby represents and warrants to the Selling Shareholders that the statements
in this Section 5 are all true, correct and complete as of the date hereof and as of the Closing
Date:

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     5.1 Authorization. All corporate actions by the Purchaser and, as applicable, its
officers, directors and shareholders necessary for the authorization, execution and delivery of,
and the performance of any and all of its obligations under this Agreement and the Ancillary
Agreements has been taken or will be taken prior to the Closing. This Agreement and the Ancillary
Agreements, when executed and delivered by the Purchaser, constitute valid and legally binding
obligations of the Purchaser, subject, as to enforcement of remedies, to applicable bankruptcy,
insolvency, moratorium, reorganization and similar laws affecting creditors’ rights generally and
to general equitable principles.

     5.2 No Conflicts; Consents and Approvals, etc. The execution and delivery of this
Agreement by the Purchaser and the performance of its obligations hereunder will not result in
(i) any conflict with the certificate of incorporation, by-laws or other constitutive
documents of the Purchaser, or (ii) any breach or violation of, conflict with or default
under any applicable law, statute, regulation, judgment, order, decree, license, permit or other
governmental authorization.

SECTION 6 ADDITIONAL COVENANTS

     6.1 Filing of the New Articles. Each of the Selling Shareholders shall cause the New
Articles to be filed by the Company with the British Virgin Islands Registrar of Companies as soon
as practicable following the Closing.

     6.2 Operation in Ordinary Course. Each of the Selling Shareholders undertake that the
Company will be operated in the ordinary course of business, consistent with past practice, and as
reasonably directed by the Purchaser, from the date hereof through the Closing Date.

SECTION 7 CONDITIONS TO CLOSING BY PURCHASER

     The obligations of the Purchaser to complete the Closing are subject to the fulfillment on or
prior to the Closing Date of the following conditions by the Selling Shareholder, any one or more
of which may be waived by the Purchaser in writing:

     7.1 Representations and Warranties True and Correct. Any and all the representations
and warranties made by the Selling Shareholder in Section 4 hereof shall be true and correct and
complete when made, and shall be true and correct and complete as of the Closing Date and to the
best of its/his knowledge, as of the date of payment of the Second Installment with the same force
and effect as if they had been made on and as of such dates.

     7.2 Performance of Obligations. The Selling Shareholder shall have performed and
complied with all agreements, obligations and conditions contained in

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this Agreement that are required to be performed or complied with by it on or before the
Closing.

     7.3 New Articles. The New Articles shall have been duly adopted by the Company by all
necessary corporate actions of its Board of Directors and its shareholders.

     7.4 Execution of New Shareholders’ Agreement. The New Shareholders’ Agreement in a
form and having a content satisfactory to the Purchaser shall have been duly executed and delivered
by all parties thereto (other than the Purchaser), and shall be in full force and effect.

     7.5 Consents, Approvals and Waivers under the November 25, 2006 Shareholders’
Agreement. All the prior written consents and approvals contained in the November 25, 2006
Shareholders’ Agreement shall have been obtained. Each other Existing Shareholders of the Company
shall have delivered a written waiver, in form and substance satisfactory to the Purchaser, waiving
any right such shareholder may have to notice of the transactions contemplated hereunder and under
any ancillary agreement entered pursuant thereto, waiving any right of first refusal or co-sale
right such shareholder may enjoy with respect to the sale of the Purchase Shares hereunder and
waiving any restrictions on the transfer or other disposition of the shares in the Company by
Selling Shareholders under the November 25, 2006 Shareholders’ Agreement. The Execution of the New
Shareholders’ Agreement by an Existing Shareholder of the Company shall be deemed a waiver by such
Existing Shareholder of its/his rights aforesaid.

     7.6 No Material Adverse Change. Since the date hereof, there has been no material
adverse change in the Company, including but not limited to its assets, liabilities, financial
condition and operating results.

     7.7 Replacement of Directors. Prior to the Closing, any and all directors of the
Company appointed and/or nominated by the Selling Shareholder shall have been removed from office
and replaced with those appointed and/or nominated by the Purchaser.

     7.8 Successful Transfer of Local ICP Enterprise. Prior to the Closing, any and all
nominee shareholders of the Domestic ICP Enterprise that have been designated by any shareholder of
the Company shall be replaced with the persons designated by the Purchaser and that all the
agreements and documents in relation to the original nominees shall be terminated and replaced with
those between new nominees and related parties.

     7.9 Selling Shareholders’ Deliverables. The Selling Shareholder‘s deliverables
specified in Section 3.2 has been delivered to the Purchaser prior to or on the Closing Date.

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SECTION 8 CONDITIONS TO PAYMENT OF SECOND INSTALLMENT

     8.1 Conditions to Payment. The obligations of the Purchaser to pay the Second
Installment to any of the Selling Shareholders are subject to the fulfillment of the preconditions
(unless otherwise waived by the Purchaser in writing) that any and all the representations and
warranties made by such Selling Shareholder in Section 4 hereof shall be true and correct and
complete as of both the execution date hereof and the Closing Date and shall be true and correct
and complete to the best of its/his knowledge as of the date of payment of the Second Installment
with the same force and effect as if they had been made on and as of such date.

SECTION 9 TERMINATION

     9.1 Termination of Agreement. This Agreement and the transactions contemplated by
this Agreement shall terminate:

          (a) between the Purchaser and any of the Selling Shareholders upon the mutual consent in
writing thereof ; or

          (b) in the event of any breach of this Agreement which materially affects any other party
hereto, such breach is not remedied within thirty (30) days after written notice thereof is given
to the breaching party by the affected party; provided, however, that in the case of any breach by
any of the Selling Shareholders, only the Purchaser has the right to early terminate this Agreement
to the extent between the Purchaser and the Selling Shareholder in breach.

     9.2 Effect of Termination. In the event this Agreement is terminated between the
Purchaser and any of the Selling Shareholders pursuant to Section 9.1, this Agreement shall become
void and have no further effect between such Parties, provided that no such party shall be relieved
of any liability for a breach of this Agreement or for any misrepresentation hereunder, nor shall
such termination be deemed to constitute a waiver of any available remedy (including specific
performance and other injunctive relieves) for any such breach or misrepresentation.

     9.3 Survival. Sections 9, 10, 11.2 and 11.3 shall survive the expiration or early
termination of this Agreement.

SECTION 10 CONFIDENTIALITY

     10.1 Confidential Information. For purpose of this Section 10, the term “Confidential
Information” shall mean the execution, delivery and performance of this Agreement and any and all
information delivered by a party hereto to any of the other party hereto in connection with the
transactions contemplated hereby.

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     10.2 Non-Disclosure.

          (i) Without the prior written consent of the disclosing party, any party receiving the
Confidential Information (a) may not use or disclose to any person any Confidential Information;
and (b) shall make every effort to prevent the use or disclosure of Confidential Information. The
said provisions do not apply to (a) disclosure of Confidential Information to a director or
employee of the receiving party whose function requires him to have the Confidential Information,
(b) disclosure of Confidential Information to a professional adviser for the purpose of advising
the Purchaser and the Selling Shareholders, (c) Confidential Information which has become public
knowledge other than, directly or indirectly, through the receiving party’s breach of this Section
10.2, or (d) disclosure of Confidential Information required by law or regulation or any competent
authorities (and then if and to the extent practicable only after consulting and taking into
account the reasonable requirements of the Purchaser and the Selling Shareholders); provided,
however, that in the above situations (a) and (b) the persons receiving the Confidential
Information have undertaken the confidentiality obligations herein.

          (ii) Without the prior written consents of the Purchaser and the Company, none of the
Selling Shareholders may disclose to any third party any confidential information about the Company
that it/he has received.

SECTION 11 MISCELLANEOUS

     11.1 Binding Effect; Assignment. This Agreement shall be binding upon and shall be
enforceable against each party, its successors and permitted assigns. In the event that only some
of the Selling Shareholders sign this Agreement, this Agreement shall be considered binding upon
and enforceable against the Purchaser and those signed Selling Shareholders, their respective
successors and permitted assigns. The fact that the remaining Selling Shareholders do not sign this
Agreement shall not affect the binding effect upon or enforceability against any signed Selling
Shareholder or its/his successors and permitted assigns.

     11.2 Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York, without giving effect to the conflict of law rules thereof
to the extent such rules would require or permit the application of the laws of another
jurisdiction.

     11.3 Dispute Resolution. Any dispute relating to or arising from the performance of
this Agreement shall be settled through consultations among the Parties, and if the parties hereto
cannot reach an agreement regarding such disputes within thirty (30) days of their occurrence, such
disputes shall be submitted to the Hong Kong International Arbitration Center for arbitration in
accordance with the UNCIRTAL Arbitration Rules then in force.

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     11.4 Costs and Expenses. Each of the parties hereto shall pay all its own costs and
expenses incident to its negotiation and entry into this Agreement and any other related agreements
or instruments contemplated hereunder or thereunder and to its performance of and compliance with
all agreements and conditions contained herein or therein on its part to be performed or complied
with, including the fees, expenses and disbursements of any counsel and/or accountants that it may
have retained.

     11.5 Notices. All notices, requests, demands, waivers and other communications
required or permitted to be given under this Agreement shall be in writing and delivered in person,
by courier or by facsimile (along with a copy by certified or registered mail) to the following
addresses:

(a) If to the Selling Shareholders,

to Mr. Bryan M. Dear:

Bryan M. Dear

Address:

Facsimile:

Telephone:

Attention: Mr. Bryan M. Dear

(b) If to the Purchaser, to:

GIGAMEDIA CHINA LIMITED

Address: 14th Floor, 122 Tunhwa North Road, Taipei 10595, Taiwan R.O.C.

Facsimile: 886-2-8770-7576

Telephone: 886-2-8770-7966

Attention: Ms. Jennifer Tseng, General Counsel

or, in each case, at such other address as may be specified in writing by the Purchaser or Mr.
Bryan M. Dear in accordance with the requirements of this Section 11.5. For the purpose of this
Section 11.5, each of the Selling Shareholders hereby authorizes Mr. Bryan. M. Dear to receive and
deliver all notices, requests, demands, waivers and other communications required or permitted to
be given under this Agreement on it/his behalf. All such notices, requests, demands, waivers and
other communications shall be deemed to have been received (x) if by personal delivery or
courier, on the day delivered, or (y) if by facsimile, (A) if during business hours
on a Business Day, on the day on which such facsimile was sent, or (B) otherwise on the
Business Day immediately following the day on which such facsimile was sent, provided that a copy
is also sent by certified or registered mail.

     11.6 Counterparts. This Agreement may be executed in counterparts and by different
parties hereto on separate copies or counterparts and which taken together

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shall constitute one and the same instrument. The facsimile transmissions of any executed
original document (including without limitation, any page of an original document on which an
original signature appears) and/or retransmission of any such facsimile transmission shall be
deemed to be the same as the delivery of an executed original. At the request of any party hereto,
the other parties hereto shall confirm facsimile transmissions by executing duplicate original
documents and delivering the same to the requesting party or parties.

[SIGNATURE PAGE FOLLOWS]

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(Signature Page)

     IN WITNESS WHEREOF the parties hereto have caused their duly authorized representatives to
execute this Agreement as of the date first written above.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	SELLING SHAREHOLDERS  
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	[Their names and signatures are set forth on the following pages]
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	GIGAMEDIA CHINA LIMITED
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Arthur Wang	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Name: Arthur Wang
	 	 	 	 	Title: CEO
	 
	 	 	 	 	 	 	 	 
	Accepted and agreed as of the date first set forth above.
	 
	 	 	 	 	 	 	 	 
	T2CN Holding Limited
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Feng Tao	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name: Chairman
	Title: Feng Tao

 

 

(Signature Page)

     IN WITNESS WHEREOF the parties hereto have caused their duly authorized representatives to
execute this Agreement as of the date first written above.

	 	 	 	 	 	 	 
	 	 	Authorized	 	Title	 	 
	Name	 	Party	 	(applicable to a company)	 	Signature
	 	 	 	 	 	 	 
	Kyung W. Lee, Trustee	 	 	 	 	 	/s/ Kyung W. Lee, Trustee
	 	 	 	 	 	 	 
	Martin S. Rood	 	 	 	 	 	/s/ Martin S. Rood
	 	 	 	 	 	 	 
	Mon Szeto	 	 	 	 	 	/s/ Mon Szeto
	 	 	 	 	 	 	 
	Bixbie Financial Corp.	 	Allan Merteen	 	President	 	/s/ Allan Meiteen
	 	 	 	 	 	 	 
	Deane Williams	 	 	 	 	 	/s/ Deane Williams
	 	 	 	 	 	 	 
	Caroline Farrell	 	 	 	 	 	/s/ Caroline Farrell
	 	 	 	 	 	 	 
	TROY EDWARD LEIGHTON	 	 	 	 	 	/s/ Troy Edward Leighton
	 	 	 	 	 	 	 
	KERRI LERELTON LEIGHTON	 	 	 	 	 	/s/ Kerri Lerelton Leighton
	 	 	 	 	 	 	 
	Calneva Financial Partners, Ltd.	 	D. BRUCE HORTON	 	Chief Financial Officer & Director	 	/s/ D. BRUCE HORTON 
	 	 	 	 	 	 	 
	The Calneva Financial Group Ltd.	 	D. Bruce Horton	 	Chief Financial Officer & Director	 	/s/ D. Bruce Horton 
	 	 	 	 	 	 	 
	Bruno Benedet	 	 	 	 	 	/s/ Bruno Benedet
	 	 	 	 	 	 	 
	D. BRUCE HORTON	 	 	 	 	 	/s/ D. BRUCE HORTON
	 	 	 	 	 	 	 
	Bryan M. DEAR	 	 	 	 	 	/s/ Bryan M. DEAR
	 	 	 	 	 	 	 
	Michelle Cote-Dear	 	 	 	 	 	/s/ Michelle Cote-Dear
	 	 	 	 	 	 	 
	GUARDSMART LIMITED	 	JUSTIN KWEI	 	PRESIDENT	 	/s/ Justin Kwei
	 	 	 	 	 	 	 
	Jacqueline J. McClure	 	 	 	 	 	/s/ Jacqueline J. McClure
	 	 	 	 	 	 	 
	DR. KEITH LIM, INC.	 	DR. KEITH LIM	 	PRESIDENT	 	/s/ DR. KEITH LIM
	 	 	 	 	 	 	 
	T. Robert Horton	 	 	 	 	 	/s/ T. Robert Horton
	 	 	 	 	 	 	 
	Bradley N. Scharfe	 	 	 	 	 	/s/ Bradley N. Scharfe
	 	 	 	 	 	 	 
	RICHARD DOUGLAS STEWART	 	 	 	 	 	/s/ Richard Douglas Stewart
	 	 	 	 	 	 	 
	622416 Alberta Ltd.	 	PEG PECKHAM	 	President	 	/s/ Peg Peckham
	 	 	 	 	 	 	 
	GEORGH ROBERTSON	 	 	 	 	 	/s/ Georgh Robertson
	 	 	 	 	 	 	 
	ROBCAGC BARTON	 	 	 	 	 	/s/ Robcagc Barton
	 	 	 	 	 	 	 
	Steve Thackray	 	 	 	 	 	/s/ Steve Thackray
	 	 	 	 	 	 	 
	Don MACSorley	 	 	 	 	 	/s/ Don MacSorley
	 	 	 	 	 	 	 
	JAMES BARTON	 	 	 	 	 	/s/ James Barton
	 	 	 	 	 	 	 
	Ronnie Steiner Travel Tours Inc.	 	Ron Steiner	 	President	 	/s/ Ron Steiner
	 	 	 	 	 	 	 
	The MacLachlan Investments
Corporation	 	PETER M. BROWN	 	PRESIDENT	 	/s/ Peter M. Brown
	 	 	 	 	 	 	 
	ROM M. JONES LTD.	 	ROM M. JONES	 	PRESIDENT	 	/s/ Rom M. Jones
	 	 	 	 	 	 	 
	JASON SCHARFE	 	 	 	 	 	/s/ JASON SCHARFE
	 	 	 	 	 	 	 
	GUY PECKHAM	 	 	 	 	 	/s/ Guy Peckham
	 	 	 	 	 	 	 
	Daryl Turner	 	 	 	 	 	/s/ Daryl Turner
	 	 	 	 	 	 	 
	ERIC K. STEWART	 	 	 	 	 	/s/ Eric K. Stewart
	 	 	 	 	 	 	 
	VERONA CAPITAL INTERNATIONAL	 	PHILIPPE MAST	 	DIRECTOR	 	/s/ Philippe Mast
	 	 	 	 	 	 	 
	MATRIX PARTNERS INC	 	KEITH A. EBERIT	 	PARTNER	 	/s/ Keith A. Eberit
	 	 	 	 	 	 	 
	HUGH COOPER	 	 	 	 	 	/s/ Hugh Cooper
	 	 	 	 	 	 	 
	LEONARD CLOUGH	 	 	 	 	 	/s/ Leonard Clough
	 	 	 	 	 	 	 
	K C GLOBAL HOLDINGS INC.	 	KEN CARTER	 	DIRECTOR	 	/s/ Ken Carter
	 	 	 	 	 	 	 
	K C GLOBAL HOLDINGS INC.	 	Kimberly Sulatyski	 	PRESIDENT & DIRECTOR	 	/s/ Kimberly Sulatyski
	 	 	 	 	 	 	 
	R.J. LABONTE & CO. LTD	 	REG LABONTE	 	PRESIDENT & DIRECTOR	 	/s/ Reg Labonte
	 	 	 	 	 	 	 
	RICK GRIFFITHS	 	 	 	 	 	/s/ RICK GRIFFITHS
	 	 	 	 	 	 	 
	JEFFREY SHEAR	 	 	 	 	 	/s/ Jeffrey Shear
	 	 	 	 	 	 	 
	MICHAEL SHEAR	 	 	 	 	 	/s/ Michael Shear
	 	 	 	 	 	 	 
	Wally Marcolin	 	 	 	 	 	/s/ Wally Marcolin
	 	 	 	 	 	 	 
	Brad Shackman	 	 	 	 	 	/s/ Brad Shackman
	 	 	 	 	 	 	 
	Richard Jeffrey	 	 	 	 	 	/s/ Richard Jeffrey
	 	 	 	 	 	 	 
	David L. Dreyer	 	 	 	 	 	/s/ David L. Dreyer
	 	 	 	 	 	 	 
	Brendan G. Murray	 	 	 	 	 	/s/ Brendan G. Murray
	 	 	 	 	 	 	 
	Graham Watson	 	 	 	 	 	/s/ Graham Watson
	 	 	 	 	 	 	 
	Dean Roosdahl	 	 	 	 	 	/s/ Dean Roosdahl
	 	 	 	 	 	 	 
	Rocky Paolo	 	 	 	 	 	/s/ Rocky Paolo
	 	 	 	 	 	 	 
	John Michael Keegan	 	 	 	 	 	/s/ John Michael Keegan
	 	 	 	 	 	 	 
	ERNEST S. POUNDER	 	 	 	 	 	/s/ Ernest S. Pounder
	 	 	 	 	 	 	 
	Terry Bonnes Chranz	 	 	 	 	 	/s/ Terry Bonnes Chranz
	 	 	 	 	 	 	 
	BRENDA LEIGHTON	 	 	 	 	 	/s/ Brenda Leighton
	 	 	 	 	 	 	 
	HAROLD LEIGHTON	 	 	 	 	 	/s/ Harold Leighton
	 	 	 	 	 	 	 
	MARVIN KRISTOFF	 	 	 	 	 	/s/ Marvin Kristoff
	 	 	 	 	 	 	 
	JOHN MICHAEL KEEGAN	 	 	 	 	 	/s/ John Michael Keegan
	 	 	 	 	 	 	 
	REMO POMPONIO	 	 	 	 	 	/s/ Remo Pomponio
	 	 	 	 	 	 	 
	CALVIN THOMPSON	 	 	 	 	 	/s/ Calvin Thompson
	 	 	 	 	 	 	 
	Conrad Lacker	 	 	 	 	 	/s/ Conrad Lacker
	 	 	 	 	 	 	 
	Robert Sali	 	 	 	 	 	/s/ Robert Sali
	 	 	 	 	 	 	 
	ROBERT J. CHARLETON	 	 	 	 	 	/s/ Robert J. Charleton
	 	 	 	 	 	 	 
	BYRON HAMPTON	 	 	 	 	 	/s/ Byron Hampton
	 	 	 	 	 	 	 
	JETCO HOLDINGS LTD.	 	KEITH BURANT	 	DIRECTOR	 	/s/ Keith Burant
	 	 	 	 	 	 	 
	Michael R. Muzos	 	 	 	 	 	/s/ Michael R. Muzos
	 	 	 	 	 	 	 
	JAMES PALEOLOGOS	 	 	 	 	 	/s/ James Paleologos
	 	 	 	 	 	 	 
	Evan S. Ho	 	 	 	 	 	/s/ Evan S. Ho
	 	 	 	 	 	 	 
	ELLIOTT LIPSEY	 	 	 	INVESTOR	 	/s/ ELLIOTT LIPSEY
	 	 	 	 	 	 	 
	Winton Capital Holdings Ltd.	 	Andrew Meode	 	Director	 	/s/ Andrew Meode
	 	 	 	 	 	 	 
	DR. BRANDT MILES INC.	 	BRANDT MILES	 	PRESIDENT & DIRECTOR	 	/s/ BRANDT MILES
	 	 	 	 	 	 	 
	GERALD B. CAUL	 	 	 	 	 	/s/ Gerald B. Caul
	 	 	 	 	 	 	 
	Beltring Limited	 	Robert Simth	 	Director	 	/s/ Robert Simth
	 	 	 	 	 	 	 
	Kathleen Wright	 	KW	 	 	 	/s/ KW
	 	 	 	 	 	 	 
	United Triumph Inc.	 	 	 	 	 	/s/ United Triumph Inc.
	 	 	 	 	 	 	 
	SHEAR HOLDINGS LIMITED	 	 	 	 	 	/s/ Shear Holdings Limited
	 	 	 	 	 	 	 
	HAMPTON ASSOCIATES LIMITED	 	 	 	 	 	/s/ Hampton Associates Limited
	 	 	 	 	 	 	 
	Valeurs Mobilieres Desjardins Inc.
ITF ROXY AND BEAR INVESTMENT	 	 	 	 	 	/s/ Valeurs Mobilieres Desjardins Inc.
ITF ROXY AND BEAR INVESTMENT
	 	 	 	 	 	 	 
	Cancettina Amante	 	 	 	 	 	/s/ Canie Amante
	 	 	 	 	 	 	 
	Rosa Marie Amante	 	 	 	 	 	/s/ Rosa Marie Amante
	 	 	 	 	 	 	 
	Eastside Pinnacle LLC	 	 	 	 	 	/s/ Eastside Pinnacle LLC

 

 

Exhibit A

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Ordinary	 	Shareholding	 	First Installment
	Name of Selling Shareholders	 	Shares	 	Percentage	 	in US$
	BRYAN M. DEAR
	 	 	700,002	 	 	 	1.251	%	 	 	437,501	 
	MICHELLE COTE-DEAR
	 	 	200,000	 	 	 	0.357	%	 	 	125,000	 
	GUARDSMART LIMITED
	 	 	200,000	 	 	 	0.357	%	 	 	125,000	 
	JACQUELINE J. McCLURE
	 	 	300,000	 	 	 	0.536	%	 	 	187,500	 
	KEITH LIM INC.
	 	 	100,000	 	 	 	0.179	%	 	 	62,500	 
	D. BRUCE HORTON
	 	 	850,000	 	 	 	1.519	%	 	 	531,250	 
	T. ROBERT HORTON
	 	 	150,000	 	 	 	0.268	%	 	 	93,750	 
	BRADLEY N. SCHARFE
	 	 	850,000	 	 	 	1.519	%	 	 	531,250	 
	JASON SCHARFE
	 	 	49,999	 	 	 	0.089	%	 	 	31,249	 
	GUY PECKHAM
	 	 	500,000	 	 	 	0.894	%	 	 	312,500	 
	BELTRING LIMITED
	 	 	300,000	 	 	 	0.536	%	 	 	187,500	 
	CALNEVA FINANCIAL PARTNERS, LTD.
	 	 	40,000	 	 	 	0.071	%	 	 	25,000	 
	THE CALNEVA FINANCIAL GROUP, LTD.
	 	 	242,497	 	 	 	0.433	%	 	 	151,561	 
	HAMPTON ASSOCIATES LIMITED
	 	 	500,000	 	 	 	0.894	%	 	 	312,500	 
	JETCO HOLDINGS LTD.
	 	 	300,000	 	 	 	0.536	%	 	 	187,500	 
	RICHARD DOUGLAS STEWART
	 	 	100,000	 	 	 	0.179	%	 	 	62,500	 
	622416 ALBERTA LTD.
	 	 	28,000	 	 	 	0.050	%	 	 	17,500	 
	GEORGE C. ROBERTSON
	 	 	65,000	 	 	 	0.116	%	 	 	40,625	 
	ROBERT C. BARTON
	 	 	100,000	 	 	 	0.179	%	 	 	62,500	 
	STEVE THACKRAY
	 	 	10,000	 	 	 	0.018	%	 	 	6,250	 
	DONALD R. MACSORLEY
	 	 	26,667	 	 	 	0.048	%	 	 	16,667	 
	JAMES S. BARTON
	 	 	100,000	 	 	 	0.179	%	 	 	62,500	 
	RONNIE STEINER TRAVEL TOURS INC.
	 	 	10,000	 	 	 	0.018	%	 	 	6,250	 
	THE MACLACHLAN INVESTMENTS
CORPORATION
	 	 	133,333	 	 	 	0.238	%	 	 	83,333	 
	RON JONES LTD.
	 	 	50,000	 	 	 	0.089	%	 	 	31,250	 
	JOHN MICHAEL KEEGAN
	 	 	15,000	 	 	 	0.027	%	 	 	9,375	 
	BRUNO BENEDET JR.
	 	 	40,000	 	 	 	0.071	%	 	 	25,000	 
	DARYL TURNER
	 	 	40,000	 	 	 	0.071	%	 	 	25,000	 
	ELLIOTT J. LIPSEY
	 	 	33,333	 	 	 	0.060	%	 	 	20,833	 
	ERIC K. STEWART
	 	 	6,666	 	 	 	0.012	%	 	 	4,166	 
	VERONA CAPITAL INTERNATIONAL
	 	 	66,667	 	 	 	0.119	%	 	 	41,667	 
	MATRIX PARTNERS, INC.
	 	 	133,333	 	 	 	0.238	%	 	 	83,333	 
	HUGH COOPER
	 	 	66,667	 	 	 	0.119	%	 	 	41,667	 
	LEONARD CLOUGH
	 	 	28,533	 	 	 	0.051	%	 	 	17,833	 
	KYUNG W. LEE, TRUSTEE
	 	 	20,000	 	 	 	0.036	%	 	 	12,500	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Ordinary	 	Shareholding	 	First Installment
	Name of Selling Shareholders	 	Shares	 	Percentage	 	in US$
	EASTSIDE PINNACLE, LLC
	 	 	26,667	 	 	 	0.048	%	 	 	16,667	 
	MICHEAL R. MUZOS
	 	 	6,000	 	 	 	0.011	%	 	 	3,750	 
	MARTIN S. ROOD
	 	 	20,000	 	 	 	0.036	%	 	 	12,500	 
	MON SZETO
	 	 	6,000	 	 	 	0.011	%	 	 	3,750	 
	KATHLEEN WRIGHT
	 	 	6,667	 	 	 	0.012	%	 	 	4,167	 
	KATHLEEN WRIGHT ROTH IRA
	 	 	6,667	 	 	 	0.012	%	 	 	4,167	 
	KC GLOBAL HOLDINGS INC.
	 	 	53,333	 	 	 	0.095	%	 	 	33,333	 
	ROBERT J. CHARLETON
	 	 	50,000	 	 	 	0.089	%	 	 	31,250	 
	DR. BRANDT MILES INC.
	 	 	10,000	 	 	 	0.018	%	 	 	6,250	 
	R.J. LABONTE & CO. LTD.
	 	 	12,000	 	 	 	0.021	%	 	 	7,500	 
	UNITED TRIUMP INC.
	 	 	53,334	 	 	 	0.095	%	 	 	33,334	 
	DEAN WILLIAMS
	 	 	26,667	 	 	 	0.048	%	 	 	16,667	 
	RICK GRIFFITHS
	 	 	13,333	 	 	 	0.024	%	 	 	8,333	 
	JAMES PALEOLOGOS
	 	 	80,000	 	 	 	0.143	%	 	 	50,000	 
	VALEURS MOBILIERES DEJARDINS
INC. ITF ROXY AND BEAR
INVESTMENT
	 	 	200,000	 	 	 	0.357	%	 	 	125,000	 
	JEFFREY SHEAR
	 	 	366,667	 	 	 	0.655	%	 	 	229,167	 
	MICHAEL SHEAR
	 	 	166,667	 	 	 	0.298	%	 	 	104,167	 
	SHEAR HOLDINGS LIMITED
	 	 	133,334	 	 	 	0.238	%	 	 	83,334	 
	BIXBIE FINANCIAL CORP.
	 	 	267,000	 	 	 	0.477	%	 	 	166,875	 
	WALLY MARCOLIN
	 	 	10,000	 	 	 	0.018	%	 	 	6,250	 
	BRAD SHACKMAN
	 	 	10,000	 	 	 	0.018	%	 	 	6,250	 
	RICHARD JEFFREY
	 	 	10,000	 	 	 	0.018	%	 	 	6,250	 
	WINTON CAPITAL HOLDINGS LTD.
	 	 	250,000	 	 	 	0.447	%	 	 	156,250	 
	DAVID L. DREYER
	 	 	10,000	 	 	 	0.018	%	 	 	6,250	 
	BRENDAN G. MURRAY
	 	 	10,000	 	 	 	0.018	%	 	 	6,250	 
	EVAN S. HO
	 	 	10,000	 	 	 	0.018	%	 	 	6,250	 
	GRAHAM WATSON
	 	 	15,000	 	 	 	0.027	%	 	 	9,375	 
	DEAN ROOSDAHL
	 	 	15,000	 	 	 	0.027	%	 	 	9,375	 
	OCKY J. PAOLO
	 	 	25,000	 	 	 	0.045	%	 	 	15,625	 
	JOHN MICHAEL KEEGAN
	 	 	13,334	 	 	 	0.024	%	 	 	8,334	 
	ERNEST S. POUNDER
	 	 	13,334	 	 	 	0.024	%	 	 	8,334	 
	TERRY BONNESCHRANZ
	 	 	1,000	 	 	 	0.002	%	 	 	625	 
	BRENDA LEIGHTON
	 	 	2,500	 	 	 	0.004	%	 	 	1,563	 
	HAROLD LEIGHTON
	 	 	2,500	 	 	 	0.004	%	 	 	1,563	 
	MARVIN D. KRISTOFF
	 	 	500	 	 	 	0.001	%	 	 	313	 
	CAROLINE FARRELL
	 	 	1,000	 	 	 	0.002	%	 	 	625	 
	TROY LEIGHTON
	 	 	1,000	 	 	 	0.002	%	 	 	625	 
	KERRI LEIGHTON
	 	 	1,000	 	 	 	0.002	%	 	 	625	 
	CONCETTINA AMANTE
	 	 	1,700	 	 	 	0.003	%	 	 	1,063	 
	ROSA MARIE AMANTE
	 	 	500	 	 	 	0.001	%	 	 	313	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Ordinary	 	Shareholding	 	First Installment
	Name of Selling Shareholders	 	Shares	 	Percentage	 	in US$
	REMO POMPONIO
	 	 	500	 	 	 	0.001	%	 	 	313	 
	CALVIN THOMPSON
	 	 	1,500	 	 	 	0.003	%	 	 	938	 
	CONRAD LACKER
	 	 	1,000	 	 	 	0.002	%	 	 	625	 
	GERRY CAUL
	 	 	5,000	 	 	 	0.009	%	 	 	3,125	 
	DUNDEE SECURITIES CORP. IN TRUST
FOR ROBERT SALI
	 	 	35,000	 	 	 	0.063	%	 	 	21,875	 
	BYRON HAMPTON
	 	 	1,000	 	 	 	0.002	%	 	 	625	 
	TOTAL
	 	 	8,307,401	 	 	 	14.85	%	 	 	5,192,130	 

 

 

Exhibit B

Financial StatementsEX-4.46 SHARE PURCHASE AGREEMENT

 

Exhibit 4.46

SPA for NewMargin Happydigital – Execution Copy

 

SHARE PURCHASE AGREEMENT

by and among

NEWMARGIN HAPPYDIGITAL INVESTMENT PARTNERS INC.

SHANGHAI NEWMARGIN VENTURE CAPITAL CO., LTD.

- and -

GIGAMEDIA CHINA LIMITED

January 1, 2007

 

 

SHARE PURCHASE AGREEMENT

     This Share Purchase Agreement (this “Agreement”), dated as of January 1, 2007, is entered
into and made by and among the following parties:

     NEWMARGIN HAPPYDIGITAL INVESTMENT PARTNERS INC., a company organized and existing under the
laws of the British Virgin Islands (the “Selling Shareholder”);

     SHANGHAI NEWMARGIN VENTURE CAPITAL CO., LTD., a company organized and existing under the laws
of the People’s Republic of China
(, “NewMargin Parent”); and

     GIGAMEDIA CHINA LIMITED, a company organized and existing under the laws of the British Virgin
Islands (the “Purchaser”).

WHEREAS,

     (i) T2CN Holding Limited (the “Company”) is a company duly organized and existing under the
laws of the British Virgin Islands, and has issued 45,448,001 Ordinary Shares (as hereinafter
defined) and 10,500,000 preferred shares;

     (ii) the Selling Shareholder holds 1,601,507 Ordinary Shares of the Company, representing
2.862% of the total issued and outstanding shares of the Company;

     (iii) NewMargin Parent is one of the ultimate beneficiaries of the Selling Shareholder, which
was indirectly established by NewMargin Parent only for the purpose of holding shares of the
Company; and

     (iv) the Selling Shareholder wishes to sell to the Purchaser, and the Purchaser wishes to
purchase from the Selling Shareholder, a total of 1,601,507 Ordinary Shares (collectively the
“Purchase Shares” and individually “Purchase Share”) subject to the terms and conditions set forth
herein; and

     NOW, THEREFORE, in consideration of the premises set forth above, the mutual covenants and
agreements set forth herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto hereby agree as follows:

1

 

SECTION 1 DEFINITIONS

     Unless otherwise defined in this Agreement or the November 25, 2006 Shareholders’ Agreement,
capitalized terms used herein shall have the following meanings:

     “Domestic
ICP Enterprise” means Shanghai T2 Entertainment Co.,
Ltd (), a domestic Chinese limited liability company registered in Shanghai
to engage in value-added telecommunications services.

     “GIGAMEDIA” means GigaMedia Limited, a company listed on the NASDAQ and the parent company of
the Purchaser.

     “Happy Digital” means a company established in Chengdu City with the Chinese name of

“”

     “MAA” means the Amended and Restated Memorandum and Articles of Association of the Company
dated on November 12, 2006.

     “New Articles” means the Amended and Restated Memorandum and Articles of Association of the
Company, in form and substance to be agreed upon by the Company, the Purchaser, the Selling
Shareholder, other existing shareholders (together with the Selling Shareholder, the “Existing
Shareholders”) of the Company and certain other parties thereto.

     “New Shareholders’ Agreement” means the Amended and Restated Shareholders’ Agreement of the
Company, among the Company, the Purchaser, other Existing Shareholders and certain other parties
thereto, in form and substance to be agreed upon by the parties thereto.

     “Net Operating Income” as used in this agreement shall mean the Company’s net income in U.S.
dollars as defined in U.S. GAAP, with the following adjustments: (1) adding back non-cash option
based compensation to employees and executives of the Company; (2) normalizing the game license fee
for the online game Aeronaut paid by the Company to JC Entertainment Corporation during the 1st
half of 2007, as if such license fees were all capitalized and amortized over the duration of the
relevant license agreement; and (3) the sum of the net income so calculated after taking account of
the foregoing items (1) and (2) multiplying by a fraction, the numerator of which shall be the
total number of the issued and outstanding Ordinary Shares and preferred shares of the Company as
at the execution date of this Agreement and the denominator of which shall be the aggregate number
of the issued and outstanding Ordinary Shares and preferred shares of the Company on June 30, 2007
excluding (i) 300,000 shares reserved for the acquisition of Happy Digital as agreed upon
in the November 25, 2006 Shareholders’ Agreement and the MAA; (ii) any additional preferred
shares issued based on 2006 Accounts (as defined therein) of the Company as agreed upon in Article
XV of the November 25, 2006 Shareholders’ Agreement; and (iii) all share issuance approved by all
the board members of the

2

 

Company appointed by the Purchaser without the written consent of the Selling Shareholder
during the 1st half of 2007 provided, however, that no share issuance shall be excluded
if such share issuance does not constitute a net downward adjustment on the Net Operating Income.

     “November 25, 2006 Shareholders’ Agreement” means the Amended and Restated Shareholders’
Agreement of the Company, dated November 25, 2006, among the Company, the Existing Shareholders and
certain other parties thereto.

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

SECTION 2 AGREEMENT TO PURCHASE AND SALE

     2.1 Agreement to Purchase and Sale. Subject to the terms and conditions hereof, at
the Closing (as defined below), the Selling Shareholder shall sell to the Purchaser, and the
Purchaser shall purchase from the Selling Shareholder, the Purchase Shares, for a price to be
ascertained as below (the “Purchase Price”).

     2.2 Purchase Price. The Purchase Price per Purchase Share shall be

     (i) US$1.05 if the Net Operating Income for the first half of 2007 is not more than US$
1,000,000;

     (ii) US$1.25 if the Net Operating Income for the first half of 2007 is US$ 1,500,000; or

     (iii) US$1.45 if the Net Operating Income for the first half of 2007 is not less than US$
2,500,000.

     The Purchase Price per Purchase Share should be adjusted on a pro rata basis if the Net
Operating Income for the first half of 2007 falls between the above 3 threshold amounts. By way of
example, if the Net Operating Income for the first half of 2007 is more than US$ 1,000,000 but less
than US$ 1,500,000, the Purchase Price per Purchase Share shall be the sum of (0.4 multiplying by
the amount of the Net Operating Income for the first half of 2007 and then divided by 1,000,000)
and US$ 0.65; if the Net Operating Income for the first half of 2007 is more than US$ 1,500,000 but
less than US$ 2,500,000, the Purchase Price per Purchase Share shall be the sum of (0.2 multiplying
by the amount of the Net Operating Income for the first half of 2007 and then divided by 1,000,000)
and US$ 0.95.

     2.3 Payment of the Purchase Price. The Purchase Price shall be paid by the
Purchaser in the following two installments to an account designated by the Selling Shareholder in
writing, which designation shall be instructed to the Purchaser fourteen (14) days prior to the
respective dates of payment specified herein:

3

 

     (i) Subject to the terms and conditions under this Agreement, the first payment of US$
1,000,942 (“First Installment”) shall be paid in cash at the Closing.

     (ii) Subject to the terms and conditions under this Agreement, the remaining Purchase Price
(“Second Installment”) shall be paid in cash on August 15, 2007 after the Closing.

SECTION 3 CLOSING; DELIVERY

     3.1 Closing. The transfer of the Purchase Shares (the “Closing”) shall take
place at the offices of the Company, 12th Floor, Xingyuan Technology Plaza, No. 418
Guiping Road, Shanghai 200233, China, on February 12, 2007 (“Closing Date”) or at such other place
and time as the parties hereto may mutually agree. Upon the Closing, all the rights and benefits
attached to and in relation to the Purchase Shares (including but not limited to the dividends
attributable to the Selling Shareholder in respect of any and all Purchase Shares if any) shall be
transferred from the Selling Shareholder to the Purchaser.

     3.2 Delivery at the Closing. At the Closing, the Selling Shareholder shall
deliver the following items to the Purchaser:

     (i) The total Purchase Shares, together with duly issued share certificates of the total
Purchase Shares in the name of the Purchaser;

     (ii) A compliance certificate, dated as of the Closing signed by the duly authorized
representative of the Selling Shareholder certifying that all the representations and warranties
set forth in Section 4 are true, correct and complete, and all the conditions hereunder have been
fulfilled; and

     (iii) An unaudited financial balance sheet, cash flow statement and profit and loss
statement of the Company for the full year of 2006 and an unaudited balance sheet, and profit and
loss statement of the Company dated as of January 31, 2007, which shall be satisfactory in form and
substance to the Purchaser.

     At the Closing, the Purchaser shall pay the First Installment to the Selling Shareholder
against receipt of all deliverables under items (i) through (iii) of Section 3.2 hereof. On the
date of receipt of the First Installment, the Selling Shareholder shall issue a written receipt
acknowledging such receipt to the Purchaser.

SECTION
4 REPRESENTATIONS AND WARRANTIES OF THE SELLING SHAREHOLDER AND NEWMARGIN PARENT

     The Selling Shareholder and NewMargin Parent hereby, jointly and severally, represent and
warrant to the Purchaser that the statements in this Section 4 are all true, correct and complete
as of the date hereof, as of the Closing Date and, to the best of their knowledge, as of the
payment date of the Second Installment:

4

 

     4.1 Organization, Good Standing and Qualification. The Company is duly organized,
validly existing and in good standing under, and by virtue of, the laws of the British Virgin
Islands and has all requisite power and authority to own its properties and assets and to carry on
its business as now conducted and as proposed to be conducted. The Company is qualified to do
business and is in good standing in each jurisdiction where failure to be so qualified would have
an adverse effect on its financial condition, business, prospects or operations, or otherwise.

     4.2 Capitalization. Immediately prior to the Closing, the authorized shares of the
Company shall consist of the following:

     (i) Ordinary Shares. A total of 55,000,000 authorized Ordinary Shares of
which 45,448,001 shares are issued and outstanding.

     (ii) Preferred Shares. A total of 25,000,000 authorized preferred shares, of
which 10,500,000 shares are issued and outstanding.

     (iii) Options, Warrants, Reserved Shares. Except for (a) the conversion
privileges of such Preferred Shares, (b) the preemptive rights provided in the November 25, 2006
Shareholders’ Agreement, and (c) 5,180,000 Ordinary Shares reserved for the Company’s employee
stock ownership plans approved by the Board of directors of the Company, (d) 300,000 Ordinary
shares reserved for the acquisition of Happy Digital as agreed upon in the November 25, 2006
Shareholders’ Agreement and the MAA, there are no options, warrants, conversions privileges or
other rights or agreements outstanding or under which the Company is or may become obliged to issue
any securities of any class or series except as set forth above. Apart from the exceptions noted
in this Section 4.2, none of the Company’s outstanding shares, and no shares issuable upon
exercise, conversion, or exchange of any outstanding options or other shares issuable by the
Company, are subject to any and outstanding liens, security interests, adverse claims, charges or
encumbrances (collectively “Liens”), preemptive rights, rights of first refusal, or other rights to
purchase such shares (whether in favor of the Company or any other person).

     4.3 Valid Issuance of Purchase Shares. The Purchase Shares have been duly authorized
and validly issued and are fully paid and non-assessable, accounting for 2.862% of the total issued
and outstanding shares of the Company and free and clear of any and all Liens. The Selling
Shareholder is the true and lawful owner of the Purchase Shares with and the full and valid title
to any and all Purchase Shares.

     4.4 Due Authorization. All corporate actions by the Company and the Selling
Shareholder and, as applicable, their respective officers, directors and shareholders necessary for
the authorization, execution and delivery of, and the performance of any and all obligations of the
Company and the Selling Shareholder under this Agreement and all other agreements, instruments and
documents executed and delivered in connection with the transactions contemplated hereby (the
“Ancillary Agreements”), has been taken or will be taken prior to the Closing. This Agreement and
the Ancillary Agreements, when executed and delivered by the Selling

5

 

Shareholder, are valid and legally binding obligations of the Selling Shareholder, subject, as
to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium, reorganization and
similar laws affecting creditors’ rights generally and to general equitable principles.

     4.5 No Conflicts. The execution and delivery of this Agreement and any and all
Ancillary Agreements by the Selling Shareholder and NewMargin Parent and the performance of their
respective obligations hereunder and thereunder will not result in (i) any conflict with
the memorandum and articles of association of the Selling Shareholder or NewMargin Parent or the
Company, (ii) any breach or violation of, conflict with or default under any law, statute,
regulation, judgment, order, decree, license, permit or other governmental authorization or any
mortgage, lease, agreement, deed of trust, indenture or any other agreements or instrument to which
the Selling Shareholder or NewMargin Parent or the Company is a party or by which the Selling
Shareholder or NewMargin Parent or the Company or their respective properties or assets are bound,
or (iii) the creation or imposition of any Liens against the Company.

     4.6 Financial Statements. Exhibit A hereto sets forth an unaudited combined balance
sheet and income statements of the Company (the forgoing financial statements and any notes thereto
are hereinafter referred to as the “Financial Statements”) as of November 30, 2006 (the “Balance
Sheet Date”). Such Financial Statements (a) accord with the books and records of the Company, (b)
are true, correct and complete and present fairly the financial condition of the Company as of the
date or dates therein indicated and the results of operations for the period or periods therein
specified, and (c) have been prepared in accordance with US generally accepted accounting
principles applied on a consistent basis. Other than expressly disclosed in the Financial
Statements, the Company does not have, directly or indirectly, material actual or contingent
liabilities in any nature whatsoever.

     4.7 Activities Since Balance Sheet Date. Since the Balance Sheet Date, there has
been no material adverse change in the Company, including but not limited to its assets,
liabilities, financial condition and operating results.

     4.8 Disclosure. The Selling Shareholder has provided the Purchaser with all
information needed for the Purchaser to decide whether to purchase the Purchase Shares. There has
been no omission of any material facts or misrepresentation of any statement herein.

SECTION
5 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

     The Purchaser hereby represents and warrants to the Selling Shareholder that the statements in
this Section 5 are all true, correct and complete as of the date hereof and as of the Closing Date:

6

 

     5.1 Authorization. All corporate actions by the Purchaser and, as applicable, its
officers, directors and shareholders necessary for the authorization, execution and delivery of,
and the performance of any and all of its obligations under this Agreement and the Ancillary
Agreements has been taken or will be taken prior to the Closing. This Agreement and the Ancillary
Agreements, when executed and delivered by the Purchaser, constitute valid and legally binding
obligations of the Purchaser, subject, as to enforcement of remedies, to applicable bankruptcy,
insolvency, moratorium, reorganization and similar laws affecting creditors’ rights generally and
to general equitable principles.

     5.2 No Conflicts; Consents and Approvals, etc. The execution and delivery of this
Agreement by the Purchaser and the performance of its obligations hereunder will not result in
(i) any conflict with the certificate of incorporation, by-laws or other constitutive
documents of the Purchaser, or (ii) any breach or violation of, conflict with or default
under any applicable law, statute, regulation, judgment, order, decree, license, permit or other
governmental authorization.

SECTION 6 ADDITIONAL COVENANTS

     6.1 Filing of the New Articles. The Selling Shareholder shall cause the New Articles
to be filed by the Company with the British Virgin Islands Registrar of Companies as soon as
practicable following the Closing.

     6.2 Operation in Ordinary Course. The Selling Shareholder and NewMargin Parent
undertake, jointly and severally, that the Company will be operated in the ordinary course of
business, consistent with past practice, and as reasonably directed by the Purchaser, from the date
hereof through the Closing Date.  

SECTION 7 CONDITIONS TO CLOSING BY PURCHASER

     The obligations of the Purchaser to complete the Closing are subject to the fulfillment on or
prior to the Closing Date of the following conditions by the Selling Shareholder and NewMargin
Parent, any one or more of which may be waived by the Purchaser in writing:

     7.1 Representations and Warranties True and Correct. Any and all the representations
and warranties made by the Selling Shareholder and NewMargin Parent in Section 4 hereof shall be
true and correct and complete when made, and shall be true and correct and complete as of the
Closing Date and, to the best of their knowledge, as of the date of payment of the Second
Installment with the same force and effect as if they had been made on and as of such dates.

     7.2 Performance of Obligations. The Selling Shareholder shall have performed and
complied with all agreements, obligations and conditions contained in

7

 

this Agreement that are required to be performed or complied with by it on or before the
Closing.

     7.3 New Articles. The New Articles shall have been duly adopted by the Company by all
necessary corporate actions of its Board of Directors and its shareholders.

     7.4 Execution of New Shareholders’ Agreement. The New Shareholders’ Agreement in a
form and having a content satisfactory to the Purchaser shall have been duly executed and delivered
by all parties thereto (other than the Purchaser), and shall be in full force and effect.

     7.5 Consents, Approvals and Waivers under the November 25, 2006 Shareholders’
Agreement. All the prior written consents and approvals contained in the November 25, 2006
Shareholders’ Agreement shall have been duly obtained. Each other Existing Shareholders of the
Company shall have delivered a written waiver, in form and substance satisfactory to the Purchaser,
waiving any right such shareholder may have to notice of the transactions contemplated hereunder
and under any ancillary agreement entered pursuant thereto, waiving any right of first refusal or
co-sale right such shareholder may enjoy with respect to the sale of the Purchase Shares hereunder
and waiving any restrictions on the transfer or other disposition of the shares in the Company by
Selling Shareholder under the November 25, 2006 Shareholders’ Agreement. The Execution of the New
Shareholders’ Agreement by an Existing Shareholder of the Company shall be deemed a waiver by such
Existing Shareholder of its/his rights aforesaid.

     7.6 No Material Adverse Change. Since the date hereof, there has been no material
adverse change in the Company, including but not limited to its assets, liabilities, financial
condition and operating results.

     7.7 Replacement of Directors. Prior to the Closing, any and all directors of the
Company appointed and/or nominated by the Selling Shareholder shall have been removed from office
and replaced with those appointed and/or nominated by the Purchaser.

     7.8 Successful Transfer of Local ICP Enterprise. Prior to the Closing, any and all
nominee shareholders of the Domestic ICP Enterprise that have been designated by the Selling
Shareholder shall be replaced with the persons designated by the Purchaser and that all the
agreements and documents in relation to the original nominees shall be terminated and replaced with
those between new nominees and related parties.

     7.9 Selling Shareholder’s Deliverables. The Selling Shareholder shall have delivered
to the Purchaser the deliverables specified in Section 3.2 prior to or on the Closing Date.

     7.10 Provision of Information and Materials. The Selling Shareholder shall have
provided, in the timely manner, all necessary documents, information and

8

 

statements to GIGAMEDIA for issuance of the GIGAMEDIA shares to the Selling Shareholder.

SECTION
8 CONDITIONS TO PAYMENT OF SECOND INSTALLMENT

     8.1 Conditions to Payment. The obligations of the Purchaser to pay the Second
Installment are subject to the precondition (unless otherwise waived by the Purchaser in writing)
that any and all the representations and warranties made by the Selling Shareholder and NewMargin
Parent in Section 4 hereof shall be true and correct and complete as of both the execution date
hereof and the Closing Date, and shall be true and correct and complete to the best of their
knowledge as of the payment of the Second Installment with the same force and effect as if they had
been made on and as of such date.

SECTION 9 TERMINATION

     9.1 Termination of Agreement. This Agreement and the transactions contemplated by
this Agreement shall terminate:

          (i) upon the mutual consent in writing of the parties hereto; or

          (ii) in the event of any breach of this Agreement which materially affects any other party
hereto, such breach is not remedied within thirty (30) days after written notice thereof is given
to the breaching party by the affected party; provided, however, that in the case of any breach by
any of the Selling Shareholder and/or NewMargin Parent, only the Purchaser has the right to early
terminate this Agreement.

     9.2 Effect of Termination. In the event this Agreement is terminated pursuant to
Section 9.1, this Agreement shall become void and have no further effect, provided that no party
shall be relieved of any liability for a breach of this Agreement or for any misrepresentation
hereunder, nor shall such termination be deemed to constitute a waiver of any available remedy
(including specific performance and other injunctive relieves) for any such breach or
misrepresentation.

     9.3 Survival. Sections 9, 10, 11.2 and 11.3 shall survive the expiration or early
termination of this Agreement.

9

 

SECTION 10 CONFIDENTIALITY

     10.1 Confidential Information. For purpose of this Section 10, the term “Confidential
Information” shall mean the execution, delivery and performance of this Agreement and any and all
information delivered by a party hereto to any of the other party hereto in connection with the
transactions contemplated hereby.

     10.2 Non-Disclosure.

          (i) Without the prior written consent of the disclosing party, any party receiving the
Confidential Information (a) may not use or disclose to any person any Confidential Information;
and (b) shall make every effort to prevent the use or disclosure of Confidential Information. The
said provisions do not apply to (a) disclosure of Confidential Information to a director or
employee of the receiving party whose function requires him to have the Confidential Information,
(b) disclosure of Confidential Information to a professional adviser for the purpose of advising
the Purchaser, the Selling Shareholder, or NewMargin Parent, (c) Confidential Information which has
become public knowledge other than, directly or indirectly, through the receiving party’s breach of
this Section 10.2, or (d) disclosure of Confidential Information required by law or regulation or
any competent authorities (and then if and to the extent practicable only after consulting and
taking into account the reasonable requirements of the Purchaser, or the Selling Shareholder or
NewMargin, where applicable); provided, however, that in the above situations (a) and (b) the
persons receiving the Confidential Information have undertaken the confidentiality obligations
herein.

          (ii) Without the prior written consents of the Purchaser and the Company, neither the
Selling Shareholder nor NewMargin Parent may disclose to any third party any confidential
information about the Company that it has received.

SECTION 11 MISCELLANEOUS

     11.1 Binding Effect; Assignment. This Agreement shall be binding upon and shall be
enforceable by each party, its successors and permitted assigns. No party may assign any of its
rights or obligations hereunder without the prior written consent of the other parties.

     11.2 Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York, without giving effect to the conflict of law rules thereof
to the extent such rules would require or permit the application of the laws of another
jurisdiction.

     11.3 Dispute Resolution. Any dispute relating to or arising from the performance of
this Agreement shall be settled through consultations among the Parties, and if the parties hereto
cannot reach an agreement regarding such disputes within thirty (30) days of their occurrence, such
disputes shall be submitted to the

10

 

Hong Kong International Arbitration Center for arbitration in accordance with the UNCIRTAL
Arbitration Rules then in force.

     11.4 Costs and Expenses. Each of the parties hereto shall pay all its own costs and
expenses incident to its negotiation and entry into this Agreement and any other related agreements
or instruments contemplated hereunder or thereunder and to its performance of and compliance with
all agreements and conditions contained herein or therein on its part to be performed or complied
with, including the fees, expenses and disbursements of any counsel and/or accountants that it may
have retained.

     11.5 Notices. All notices, requests, demands, waivers and other communications
required or permitted to be given under this Agreement shall be in writing and delivered in person,
by courier or by facsimile (along with a copy by certified or registered mail) to the following
addresses:

(a) If to the Selling Shareholder, to:

NEWMARGIN HAPPYDIGITAL INVESTMENT PARTNERS INC.

Address: 76 Xing Guo Road, Radisson Plaza Hotel, Villa 3, Shanghai, China

Facsimile: 86-21-6213-7000

Telephone: 86-21-6213-8000

Attention: Mr. Greg Ye

(b) If to NewMargin Parent, to:

SHANGHAI NEWMARGIN VENTURE CAPITAL CO., LTD.

Address: 76 Xing Guo Road, Radisson Plaza Hotel, Villa 3, Shanghai, China

Facsimile: 86-21-6213-7000

Telephone: 86-21-6213-8000

Attention: Mr. Feng Tao

(c) If to the Purchaser, to:

GIGAMEDIA CHINA LIMITED

Address: 14th Floor, 122 Tunhwa North Road, Taipei 10595, Taiwan R.O.C.

Facsimile: 886-2-8770-7576

Telephone: 886-2-8770-7966

Attention: Ms. Jennifer Tseng, General Counsel

or, in each case, at such other address as may be specified in writing to the other parties in
accordance with the requirements of this Section 11.5. All such notices, requests, demands,
waivers and other communications shall be deemed to have been received (x) if by personal
delivery or courier, on the day delivered, or (y) if by

11

 

facsimile, (A) if during
business hours on a Business Day, on the day on which such facsimile was sent, or (B)
otherwise on the Business Day immediately following the
day on which such facsimile was sent, provided that a copy is also sent by certified or registered
mail.

     11.6 Counterparts. This Agreement may be executed in counterparts and by different
parties hereto on separate copies or counterparts and which taken together shall constitute one and
the same instrument. The facsimile transmissions of any executed original document (including
without limitation, any page of an original document on which an original signature appears) and/or
retransmission of any such facsimile transmission shall be deemed to be the same as the delivery of
an executed original. At the request of any party hereto, the other parties hereto shall confirm
facsimile transmissions by executing duplicate original documents and delivering the same to the
requesting party or parties.

[SIGNATURE PAGE FOLLOWS]

12

 

(Signature Page)

     IN WITNESS WHEREOF the parties hereto have caused their duly authorized representatives to
execute this Agreement as of the date first written above.

	 	 	 	 	 	 	 
	 	 	NEWMARGIN HAPPYDIGITAL INVESTMENT
 PARTNERS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Wu Xin	 	 
	 

	 	Name:
	 	 

Wu Xin
	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	SHANGHAI NEWMARGIN VENTURE CAPITAL	 	 
	 	 	CO., LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Feng Tao	 	 
	 

	 	Name:
	 	 

Feng Tao
	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	GIGAMEDIA CHINA LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Arthur Wang	 	 
	 

	 	Name:
	 	 

Arthur Wang
	 	 
	 

	 	Title:
	 	CEO	 	 

Accepted and agreed as of the date first set forth above.

T2CN Holding Limited

	 	 	 	 	 
	By:

	 	/s/ Feng Tao	 	 
	Name:

	 	 

Chairman
	 	 
	Title:

	 	Feng Tao	 	 

 

 

Exhibit A

Financial Statements

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