Document:

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                                                                     EXHIBIT 4.6

                                                                  EXECUTION COPY

                          XINHUA FINANCE MEDIA LIMITED

                            INVESTOR RIGHTS AGREEMENT

                                 March 16, 2006

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
ARTICLE I Definitions......................................................    1
   Section 1.01.   Definitions.............................................    1

ARTICLE II Covenants of the Company........................................   11
   Section 2.01.   Certain Affirmative Covenants of the Company............   11
   Section 2.02.   Termination of Covenants................................   15

ARTICLE III Pre-Emptive Rights.............................................   15
   Section 3.01.   Pre-Emptive Rights......................................   15
   Section 3.02.   Termination of Pre-Emptive Rights.......................   16

ARTICLE IV Transfers.......................................................   16
   Section 4.01.   Transfers...............................................   16
   Section 4.02.   Legends.................................................   17
   Section 4.03.   Co-Sale Rights..........................................   17
   Section 4.04.   Right to sell in IPO or QIPO............................   19

ARTICLE V Registration Rights..............................................   19
   Section 5.01.   Demand Registration.....................................   19
   Section 5.02.   Piggyback Registration..................................   22
   Section 5.03.   F-3 or S-3 Registration.................................   23
   Section 5.04.   Expenses of Registration................................   24
   Section 5.05.   Further Obligations of the Company......................   25
   Section 5.06.   Preparation; Reasonable Investigation;
                   Review by Counsel.......................................   27
   Section 5.07.   Indemnification.........................................   28
   Section 5.08.   Rule 144 Reporting......................................   30
   Section 5.09.   Transfer of Registration Rights.........................   31
   Section 5.10.   Subsequent Registration Rights..........................   31
   Section 5.11.   Registration in Non-U.S. Jurisdictions..................   31

ARTICLE VI Miscellaneous...................................................   31
   Section 6.01.   Notices.................................................   32
   Section 6.02.   Counterparts............................................   33
   Section 6.03.   Modification or Amendment of Agreement..................   33
   Section 6.04.   Successors and Assigns..................................   33
   Section 6.05.   Governing Law...........................................   33
   Section 6.06.   Waiver of Jury..........................................   33
   Section 6.07.   Integration.............................................   34
   Section 6.08.   Severability............................................   34
   Section 6.09.   Interpretation..........................................   34
   Section 6.10.   Ambiguities.............................................   34
   Section 6.11.   Further Assurances......................................   34
   Section 6.12.   No Third-Party Rights...................................   35
   Section 6.13.   No Waiver; Remedies.....................................   35
   Section 6.14.   Submission to Jurisdiction..............................   35

Schedule A - Investors

Annex A - Exempt Issuances
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                                       i

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     INVESTOR RIGHTS AGREEMENT (the "Agreement"), dated as of March 16, 2006,
between among (a) XINHUA FINANCE MEDIA LIMITED, a Cayman Islands Limited Company
(the "Company"), (b) the holders of the Company's Preferred Shares (as defined
below) listed on Schedule A hereto (each, an "Investor" and collectively, the
"Investors"), and (c) XINHUA FINANCE LIMITED (the "Parent").

                                    RECITALS

     A. The Company and the Investors have entered into that certain Share
Purchase Agreement, dated as of the date hereof (the "Share Purchase
Agreement"), pursuant to which the Company agreed to issue to the Investors, and
the Investors agreed to purchase from the Company, Preferred Shares.

     B. In order to induce the Investors to invest funds in the Company pursuant
to the Share Purchase Agreement and as a condition to the Investors' obligations
under the Share Purchase Agreement, the Company and the Parent desire to grant
the Investors certain rights as set forth herein.

                                    AGREEMENT

     In consideration of the premises and the mutual covenants and the
agreements herein set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

                                   ARTICLE I

                                   Definitions

     Section 1.01. Definitions.

          (a) As used in this Agreement, the following terms shall have the
     following meanings (such meanings to be equally applicable to both the
     singular and plural forms of the terms defined).

               (i) "Accelerated Redemption Event" means the "Accelerated
          Redemption Event" as defined in the Articles of Association of the
          Company.

               (ii) "Action" against a Person means an action, suit, litigation,
          arbitration, investigation, complaint, contest, hearing, inquiry,
          inquest, audit, examination or other proceeding threatened or pending
          against or affecting the Person or its property, whether civil,
          criminal, administrative, investigative or appellate, in law or equity
          before any arbitrator or Governmental Body.

               (iii) "Affiliate" of a Person means any other Person (a) that
          directly or indirectly controls, is controlled by or is under common
          control with, the Person or any of its Subsidiaries, (b) that directly
          or indirectly beneficially owns or holds 5% or more of any class of
          equity Security or other similar interests of the Person or any of

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          its Subsidiaries or (c) 5% or more of the equity Securities of which
          is directly or indirectly beneficially owned or held by the Person or
          any of its Subsidiaries. For purposes of this definition, the term
          "control" means the possession, directly or indirectly, of the power
          to direct or cause the direction of the management and policies of a
          Person, whether through the ownership of voting securities, by
          contract, agreement or otherwise. Notwithstanding the foregoing, no
          Investor or any Affiliate of any Investor shall be an Affiliate of the
          Parent, the Company or any of its Subsidiaries.

               (iv) "Articles of Association" means the Amended and Restated
          Articles of Association of the Company.

               (v) "Authorized Officer" means, as applied to any Person, any
          individual holding the position of chairman of the board (if an
          office), chief executive officer, president or one of its vice
          presidents (or the equivalent thereof), and such Person's chief
          financial officer or treasurer.

               (vi) "Board of Directors" means the board of directors of the
          Company as constituted from time to time.

               (vii) "Bridge Loan" means the loan dated March 2, 2006 in the
          principal amount of $2,000,000 from Xinhua Financial Network Limited
          to Company.

               (viii) "Business Day" means a day other than Saturday or Sunday
          or other day on which commercial banks in New York City, New York,
          Charlotte, North Carolina, Hong Kong or Tokyo, Japan, are authorized
          or required by law or other governmental action to close and a day on
          which dealings are carried on for deposits in Dollars by and among
          banks in the London interbank market.

               (ix) "Capital Lease" means, as applied to any Person, any lease
          of any property (whether real, personal or mixed) by that Person as
          lessee that, in conformity with GAAP, is or should be accounted for as
          a capital lease on the balance sheet of that Person.

               (x) "Capital Stock" means any and all shares, interests,
          participations or other equivalents (however designated) of capital
          stock of a corporation, any and all equivalent ownership interests in
          a Person (other than a corporation), including, without limitation,
          partnership interests and membership interests, and any and all
          warrants, rights or options to purchase or other arrangements or
          rights to acquire any of the foregoing.

               (xi) "Collateral" has the meaning stated in the Security
          Agreement.

               (xii) "Collateral Documents" means the Security Agreement, the
          Pledge Agreement, and all other instruments, documents and agreements
          delivered by the Company or any Covered Subsidiary pursuant to the
          Share Purchase Agreement or any of the other Equity Documents
          (including, without limitation, all UCC financing

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          statements) in order to grant to the Investor a Lien on any property
          of the Company or any Covered Subsidiary as security for the
          Obligations.

               (xiii) "Common Shares" means (a) the Company's common shares, par
          value $0.001 per share, (b) any securities of the Company which the
          holders of the Company's common shares, par value $0.001 per share,
          shall be entitled to receive, or shall have received, in connection
          with any stock splits, stock dividends or similar events with respect
          to the Company's common shares, par value $0.001 per share and (c) any
          other securities into which or for which any of the Company's common
          shares, par value $0.001 per share, may be converted or exchanged
          pursuant to a plan of recapitalization, reorganization, merger, sale
          of assets or otherwise.

               (xiv) "Covered Subsidiary" means (i) Ming Shing International
          Limited, a British Virgin Islands company, (ii) Upper Will Enterprises
          Limited, a British Virgin Islands company and (iii) Active Advertising
          Agency Limited, a Hong Kong company.

               (xv) "Credit Agreement" means the Credit Agreement, dated as of
          March 16, 2006, among the Company, the Investors, the Guarantors named
          therein and the Agent named therein.

               (xvi) "Credit Document" means "Credit Document" as defined under
          the Credit Agreement.

               (xvii) "Default" means a condition or event that, after notice or
          lapse of time or both, would constitute an Event of Default.

               (xviii) "Designated Offshore Securities Market" means the
          Designated Offshore Securities Market as defined in Section 230.902(b)
          of Regulation S of the Securities Act.

               (xix) "Domestic Subsidiary" means any Subsidiary organized under
          the laws of the PRC.

               (xx) "Environmental Laws" means all national, state, regional,
          provincial, and local laws (including without limitation common law),
          statutes, regulations and rules whether now or hereinafter in effect
          relating in any way to the environment, the preservation or
          reclamation of natural resources, the management, release or
          threatened release of any Hazardous Material or health and safety
          matters.

               (xxi) "Environmental Permits" means all permits, licenses,
          authorizations, registrations and other governmental consents required
          by applicable Environmental Laws for the use, storage, treatment,
          transportation, release, emission and disposal of raw materials,
          by-products, wastes and other substances used or produced by or
          otherwise relating to the operations of the Company and any of its
          Subsidiaries.

               (xxii) "Equity Documents" means the Share Purchase Agreement, the
          Collateral Documents, the Investor Rights Agreement, the Articles of
          Association of

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          the Company and all other documents or instruments or agreements
          executed or delivered by the Company or a Covered Subsidiary for the
          benefit of any Investor.

               (xxiii) "Equity Securities" means the Common Shares, Preferred
          Shares and any other capital stock, equity interest or other ownership
          interest or profit participation or similar right with respect to the
          Company, including, without limitation, limited liability company
          membership interests, partnership interests, voting trust
          certificates, certificates of interest or participation in any
          profit-sharing agreement or arrangement, options, warrants, bonds,
          debentures, notes, or other evidences of indebtedness, secured or
          unsecured, convertible, subordinated or otherwise, or in general any
          instruments commonly known as "securities" or any certificates of
          interest, shares or participations in temporary or interim
          certificates for the purchase or acquisition of, or any right to
          subscribe to, purchase or acquire, any of the foregoing.

               (xxiv) "Event of Default" means an Event of Default as defined in
          the Credit Agreement.

               (xxv) "Exchange Act" means the United States Securities Exchange
          Act of 1934, as amended from time to time, and any successor statute.

               (xxvi) "Financial Officer Certification" means, with respect to
          the financial statements for which such certification is required, the
          certification of the chief financial officer of the Company that such
          financial statements fairly present, in all material respects, the
          financial condition of the Company and its Subsidiaries on a
          consolidated basis as at the dates indicated and the results of their
          operations and their cash flows for the periods indicated, subject to
          the absence of footnotes and changes resulting from audit and normal
          year-end adjustments.

               (xxvii) "Financials" means, with respect to any Person for any
          period, the balance sheet of such Person as at the end of such period,
          and the related statement of income and expense and statement of cash
          flow of such Person for such period, each setting forth in comparative
          form the figures for the previous comparable fiscal period, all in
          reasonable detail and prepared in accordance with GAAP.

               (xxviii) "First Lien Collateral Agent" means "Agent" as defined
          under the Credit Documents.

               (xxix) "Fiscal Year" means the fiscal year of the Company and its
          Subsidiaries ending on December 31 of each calendar year.

               (xxx) "Foreign Subsidiary" means any Subsidiary that is not a
          Domestic Subsidiary.

               (xxxi) "Fully-Diluted Common Shares" means, as of the time of
          determination, all issued and outstanding common shares of the Company
          and all common shares of the Company issuable upon conversion or
          exercise of any rights,

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          options, warrants or other securities convertible into or exercisable
          for common shares, including, without limitation, the Preferred
          Shares.

               (xxxii) "GAAP" means International Financial Reporting Standards
          as in effect from time to time, consistently applied throughout the
          periods to which reference is made.

               (xxxiii) "Governmental Body" means any agency, bureau,
          commission, court, department, official, political subdivision,
          tribunal or other instrumentality of any administrative, judicial,
          legislative, executive, regulatory, police or taxing authority of any
          government, whether supranational, national, federal, state, regional,
          provincial, local, domestic or foreign.

               (xxxiv) "Hazardous Material" means any hazardous or toxic
          substance, waste, contaminant, pollutant, gas or material, including,
          without limitation, radioactive materials, oil, petroleum and
          petroleum products and constituents thereof, which are regulated under
          any Environmental Law, including, without limitation, any substance,
          waste or material which is (a) designated a "pollutant", "hazardous
          substance", "extremely hazardous substance" or "toxic chemical" under
          any Environmental Law, or (b) regulated in any way under the
          Regulations of any state where the Company or any of its Subsidiaries
          conducts its business or owns any real property or has any leasehold
          or in which any Relevant Property is located.

               (xxxv) "Holder" means any Person (including the Investors) who
          holds any Equity Securities.

               (xxxvi) "Hong Kong" means the Hong Kong Special Administrative
          Region of the People's Republic of China.

               (xxxvii) "IPO" means an initial public offering of Common Shares
          of the Company which has been admitted for listing and trade on a
          Qualified Exchange.

               (xxxviii) "Indebtedness" means, with respect to any Person,
          without duplication, the following: (i) all indebtedness of such
          Person for borrowed money, (ii) all obligations of such Person for the
          deferred purchase price of property or services other than accounts
          payable and accrued liabilities that would be classified as current
          liabilities under GAAP which payables and expenses are incurred in
          respect of property or services purchased in the ordinary course of
          business, (iii) all obligations of such Person evidenced by notes,
          bonds, debentures or similar borrowing or securities instruments, (iv)
          all obligations of such Person created or arising under any
          conditional sale or other title retention agreement with respect to
          property acquired by such Person, (v) all obligations of such Person
          as lessee under Capital Leases, (vi) all obligations of such Person in
          respect of banker's acceptances and letters of credit, (vii) all
          obligations of such Person secured by Liens on the assets and property
          of such Person, (viii) all obligations of such Person to purchase,
          redeem, retire, defease or otherwise make any payment in respect of
          any capital stock or other ownership or profit interest in such Person
          or any other Person or any warrants, rights or options to acquire such
          capital stock, (ix) all obligations of such Person in respect of any

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          guaranty by such Person of any obligation of another Person of the
          type described in clauses (i) through (viii) of this definition and
          (x) all obligations of another Person of the type described in clauses
          (i) through (ix) secured by a Lien on the property or assets of such
          Person (whether or not such Person is otherwise liable for such
          obligations of such other Person).

               (xxxix) "Internal Control Agreement" means (i) any appointment or
          indemnification arrangement or agreement with a natural Person, who is
          a citizen of the PRC, designated by the Parent or the Company or any
          Affiliate or Subsidiary of the Parent or the Company to act as nominee
          shareholder and legal representative of any Domestic Subsidiary, and
          any action, arrangement, declaration, or agreement undertaken by such
          Person, or caused to be undertaken by such Person, in connection with
          the fulfillment of such role, including, without limitation, the
          acquisition of any beneficial interest or the holding of record in the
          Securities (including Capital Stock) of such Domestic Subsidiary and
          the execution, either with the Parent, the Company, Affiliate or
          Subsidiary of the Parent or the Company or any other third party
          whether or not affiliated with the Parent or the Company, of any
          secured promissory note, equity pledge agreement, equity purchase
          option agreement, subrogation agreement, declaration of waiver of
          pre-emption rights, and declaration of waiver of spousal communal
          rights or (ii) any arrangement or agreement (including, without
          limitation, any consulting or service arrangements or agreements)
          pursuant to which the Company or any Subsidiary of the Company
          indirectly receives the economic benefit of revenue generated by any
          Media Asset.

               (xl) "Liens" means any encumbrance, mortgage, pledge,
          hypothecation, charge, assignment, lien, restriction or other security
          interest of any kind securing any obligation of any Person.

               (xli) "Material Adverse Effect" means any (i) material adverse
          effect on the business, operations, properties, assets or condition
          (financial or otherwise) of the Company and its Subsidiaries taken as
          a whole that may affect the ability of the Company or any Covered
          Subsidiary to perform its material obligations under any of the Equity
          Documents, (ii) material impairment of the ability of the Company or
          the Covered Subsidiaries to perform their obligations under any of the
          Equity Documents, (iii) material adverse effect on the legality,
          validity, binding effect or enforceability of the Equity Documents
          against the Company or any Covered Subsidiary or (iv) material adverse
          effect on the rights or remedies available to the Investors under any
          Equity Document, excluding any written waivers or releases by the
          Investors.

               (xlii) "Media Asset" means the assets set forth in Annex A of the
          Share Purchase Agreement.

               (xliii) "Newspaper Assets" means the assets set forth in Annex B
          of the Share Purchase Agreement.

               (xliv) "Obligations" means all amounts owed, obligations and
          liabilities of the Company or any of its Covered Subsidiaries from
          time to time owed to any

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          Investor or its Affiliates direct or indirect, joint or several,
          absolute or contingent, matured or unmatured, liquidated or
          unliquidated, secured or unsecured, arising by contract, operation of
          law or otherwise, arising or incurred under the Equity Documents.

               (xlv) "Original Issuance Date" has the meaning defined in the
          Articles of Association.

               (xlvi) "Parent" means Xinhua Finance Limited.

               (xlvii) "Permitted Liens" means (i) Liens securing the
          Obligations, (ii) Liens securing taxes or other governmental charges
          not yet due or due but contested in good faith by appropriate
          proceedings and for which the Company or any of its Covered Subsidiary
          has made appropriate reserves (so long as the holder of any such Lien
          is not taking any active steps to enforce or foreclose on such Lien),
          (iii) Liens of landlords, carriers, warehousemen, mechanics and
          materialmen and other similar statutory Liens arising in the ordinary
          course of the Company and such Covered Subsidiary's business, less
          than 120 days old as to obligations not yet due or due but contested
          in good faith by appropriate proceedings and for which the Company and
          such Covered Subsidiary has made appropriate reserves (so long as the
          holder of any such Lien is not taking any active steps to enforce or
          foreclose on such Lien), (iv) easements, rights of way, zoning
          restrictions and similar minor Liens which individually and in the
          aggregate do not have a Material Adverse Effect on the Company and/or
          any Covered Subsidiary, and (v) Liens securing obligations arising
          under the Credit Documents.

               (xlviii) "Person" means and includes natural persons,
          corporations, limited partnerships, general partnerships, limited
          liability companies, limited liability partnerships, joint stock
          companies, Joint Ventures, associations, companies, trusts, banks,
          trust companies, land trusts, business trusts or other organizations,
          whether or not legal entities, other legal entities and Governmental
          Bodies.

               (xlix) "Pledge Agreement" means the Pledge Agreement, dated as of
          March 16, 2006, by the Pledgors signatory thereto in favor of
          Investors.

               (l) "Potential Material Event" means either (a) the possession by
          the Company of material information not ripe for disclosure in a
          registration statement, or (b) any material engagement or activity by
          the Company which would be adversely affected by disclosure in a
          registration statement at such time, in each case, which shall be
          evidenced by a written good faith determination by the Board that both
          (x) disclosure of such information, engagement or activity in a
          registration statement would be detrimental to the business and
          affairs of the Company, and (y) a registration statement would be
          materially misleading absent the inclusion of such information,
          engagement or activity.

               (li) "Preference Amount" means the "Preference Amount" defined in
          the Articles of Association of the Company.

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               (lii) "Preferred Holder" means (both before and after the
          conversion of the Preferred Shares into Common Shares) the Investors
          and any Person to whom the Investors shall Transfer any of the
          Investors' Preferred Shares, and/or Common Shares pursuant to the
          terms of this Agreement.

               (liii) "Preferred Shares" means (a) the shares of the Company's
          Convertible Preferred Shares, face value $3.657438 per share, (b) any
          securities of the Company which the holders of the Company's
          Convertible Preferred Shares, face value $3.657438 per share, shall be
          entitled to receive, or shall have received, in connection with any
          stock splits, stock dividends or similar events with respect to the
          Company's Convertible Preferred Shares, face value $3.657438 per
          share, and (c) any other securities into which or for which any of the
          Company's Convertible Preferred Shares, face value $3.657438 per
          share, may be converted or exchanged pursuant to a plan of
          recapitalization, reorganization, merger, sale of assets or otherwise.

               (liv) "PRC" means the People's Republic of China excluding Hong
          Kong, Macau Special Administrative Region and Taiwan.

               (lv) "QIPO" means an IPO of the Company in which the QIPO
          Valuation is no less than $400 million or, if 100% of the ownership of
          both Newspaper Assets has been acquired directly or indirectly by the
          Company, an IPO of the Company in which the QIPO Valuation is no less
          than $500 million.

               (lvi) "QIPO Valuation" means an amount equal to (i) the initial
          price per share of Company's Common Shares issued in the IPO (and, if
          such price is not expressed in Dollars, then its equivalent in
          Dollars) multiplied by (ii) the number of outstanding Company's Common
          Shares immediately following the closing of the IPO.

               (lvii) "Register", "registered" and "registration" means a
          registration effected through the preparation and filing of a
          registration statement or similar document in compliance with the
          Securities Act and the declaration or ordering of effectiveness of
          such registration statement or document.

               (lviii) "Registrable Securities" means and includes all Common
          Shares held by the Preferred Holders (including, without limitation,
          all Common Shares issuable upon conversion of the Preferred Shares);
          provided, however, that Registrable Securities shall cease to be
          Registrable Securities upon the consummation of any sale of such
          securities pursuant to a registration statement or Rule 144.

               (lix) "Registrable Security Holder" means any Person (including
          each Investor) who holds Registrable Securities or the rights to hold
          Registrable Securities, or any Person to whom any Registrable Security
          Holder shall Transfer its Registrable Securities pursuant to Section
          5.09 of this Agreement.

               (lx) "Registration Expenses" means all expenses incurred by the
          Company in effecting any registration pursuant to this Agreement,
          including, without limitation, all registration, qualification and
          filing fees, printing expenses, escrow fees, fees and

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          disbursements of counsel for the Company, blue sky fees and expenses,
          the expense of any special audits incident to or required by any such
          registration and the reasonable fees and disbursements of one special
          legal counsel to represent all of the Registering Holders, Piggyback
          Holders or F-3 or S-3 Holders, as the case may be. Registration
          Expenses do not include compensation of regular employees of the
          Company which shall be paid in any event by the Company, underwriting
          discounts and commissions and stock transfer taxes.

               (lxi) "Registration Statement" means a registration statement on
          Form F-1 or S-1, Form F-3 or S-3 or Form SB-2 (or such similar or
          successor forms as may be appropriate) prepared and filed with the SEC
          by the Company pursuant to Article V of this Agreement.

               (lxii) "Regulation" means each applicable law, rule, regulation,
          order, guidance or recommendation (or any change in its interpretation
          or administration) by any Governmental Body, central bank or
          comparable agency and any request or directive (whether or not having
          the force of law) of any of those Persons and each judgment,
          injunction, order, writ, decree or award of any Governmental Body,
          arbitrator or other Person.

               (lxiii) "Relevant Property" means, for the Company and/or any of
          its Subsidiaries, all sites, facilities, locations, real property and
          leaseholds (a) presently or formerly owned, leased, used or operated
          by the Company or any of its Subsidiaries (whether or not such
          properties are currently owned, leased, used or operated by the
          Company or any of its Subsidiaries), (b) at which any Hazardous
          Material has been transported, disposed, treated, stored or released
          by the Company or any of its Subsidiaries, or (c) that are directly
          adjacent to any sites, facilities, locations, real property or
          leaseholds presently or formerly owned, leased, used or operated by
          the Company or any of its Subsidiaries.

               (lxiv) "Rule 144" means Rule 144 promulgated under the Securities
          Act, as such rule shall be in effect from time to time.

               (lxv) "Schedule of Exceptions" means the Schedule of Exceptions
          attached as Exhibit C to the Share Purchase Agreement and delivered to
          the Investors prior to the execution of the Share Purchase Agreement.

               (lxvi) "SEC" means the United States Securities and Exchange
          Commission and includes any Governmental Body succeeding to the
          functions thereof.

               (lxvii) "Security Agreement" means the Security Agreement, dated
          as of March 16, 2006, among the Company, the Covered Subsidiaries and
          the Investors.

               (lxviii) "Securities" means any stock, shares, limited liability
          company membership interests, partnership interests, voting trust
          certificates, certificates of interest or participation in any
          profit-sharing agreement or arrangement, options, warrants, bonds,
          debentures, notes, or other evidences of indebtedness, secured or
          unsecured, convertible, subordinated or otherwise, or in general any
          instruments

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          commonly known as "securities" or any certificates of interest, shares
          or participations in temporary or interim certificates for the
          purchase or acquisition of, or any right to subscribe to, purchase or
          acquire, any of the foregoing.

               (lxix) "Securities Act" means the United States Securities Act of
          1933, as amended from time to time, and any successor statute.

               (lxx) "Selling Expenses" means all underwriting discounts,
          selling commissions and stock transfer taxes applicable to the
          Registrable Securities registered by the Registering Holders,
          Piggyback Holders or F-3 or S-3 Holders, as the case may be.

               (lxxi) "Subsidiary" means, (i) with respect to any Person, any
          corporation, partnership, limited liability company, association,
          joint venture or other business entity of which more than 50% of the
          total voting power of shares of stock or other ownership interests
          entitled (without regard to the occurrence of any contingency) to vote
          in the election of the Person or Persons (whether directors, managers,
          trustees or other Persons performing similar functions) having the
          power to direct or cause the direction of the management and policies
          thereof is at the time owned or controlled, directly or indirectly, by
          that Person or one or more of the other Subsidiaries of that Person or
          a combination thereof and (ii) the entities listed on Annex C of the
          Share Purchase Agreement and their Subsidiaries as defined in clause
          (i) of this definition.

               (lxxii) "Tax" means any present or future tax, levy, impost,
          duty, assessment, charge, fee, deduction or withholding of any nature
          and whatever called, by whomsoever, on whomsoever and wherever
          imposed, levied, collected, withheld or assessed, provided, "Tax on
          the overall net income" of a Person shall be construed as a reference
          to a tax imposed by the jurisdiction in which that Person is organized
          or in which that Person's applicable principal office is located or in
          which that Person is deemed to be doing business on all or part of the
          net income, profits or gains (whether worldwide, or only insofar as
          such income, profits or gains are considered to arise in or to relate
          to a particular jurisdiction, or otherwise) of that Person.

               (lxxiii) "Transfer" means any sale, assignment, transfer,
          exchange, pledge, grant of security interest in, hypothecation,
          encumbrance or other disposition or conveyance of any interest in.

               (lxxiv) "UCC" means the Uniform Commercial Code (or any similar
          or equivalent legislation) as in effect in any applicable
          jurisdiction.

               (lxxv) "WFOE" means a direct or indirect wholly owned Domestic
          Subsidiary of the Company.

          (b) Any reference in this Agreement to a "first-priority lien" or
     words of similar effect in describing the security interests created under
     the Share Purchase Agreement shall be understood to refer to such priority
     subject to the claims of the First Lien Collateral Agent under the Credit
     Agreement and related agreements.

                                       10

<PAGE>

                                   ARTICLE II

                            Covenants of the Company

     Section 2.01. Certain Affirmative Covenants of the Company. The Company
covenants and agrees that, from and after the date of this Agreement, the
Company shall perform and observe the following covenants and provisions:

          (a) Basic Reporting Requirements. The Company shall furnish to the
     Investor:

               (i) as soon as available but in any event within ninety (90) days
          after the close of each Fiscal Year, the audited consolidated
          Financials of the Company and its Subsidiaries for such Fiscal Year,
          certified by the Company's accountants;

               (ii) as soon as available but in any event within sixty (60) days
          after the end of each Fiscal Quarter, the unaudited consolidated
          Financials of the Company and its Subsidiaries for such quarter;

               (iii) as soon as available but in any event within thirty (30)
          Business Days after the end of each fiscal month the unaudited
          consolidated Financials of the Company and its Subsidiaries for such
          month, certified by its chief financial officer pursuant to a
          Financial Officer Certification;

               (iv) together with the quarterly and annual audited consolidated
          Financials, a certificate of the Company certifying that (i) no
          Default or Event of Default has occurred and (ii) no Accelerated
          Redemption Event has occurred, or if any such event in subsection (i)
          or (ii) has occurred, the actions taken by the Company with respect
          thereto;

               (v) promptly upon Company obtaining knowledge of (i) the
          institution of, or non-frivolous written threat of, any Action not
          previously disclosed in writing by Company to Investors, or (ii) any
          material development in any action that, in the case of either clause
          (i) or (ii), if adversely determined could be reasonably expected to
          have a Material Adverse Effect, or seeks to enjoin or otherwise
          prevent the consummation of, or to recover any material damages or
          obtain relief as a result of, the transactions contemplated hereby,
          written notice thereof together with such other information as may be
          reasonably available to Company to enable Investors and their counsel
          to evaluate such matters;

               (vi) as soon as available but in any event no later than the end
          of each Fiscal Year an updated financial projection for the succeeding
          Fiscal Year;

               (vii) promptly upon their becoming available, all minutes and
          written resolutions of the Board of Directors of the Company;

               (viii) promptly upon their becoming available, copies of all
          statements, reports, releases, notices and any other information or
          data sent or made available generally by the Company to its
          shareholders; and

                                       11

<PAGE>

               (ix) with reasonable promptness, such other information and
          financial data concerning the Company and its Subsidiaries as any
          Person entitled to receive information under this Section 2.01(a)
          shall request.

          (b) Visitation; Verification. The Company shall keep, and shall cause
     each Covered Subsidiary to keep, true and accurate books of account in
     accordance with GAAP and shall permit, and cause such Covered Subsidiary to
     permit, the Investor and or any of their designated representatives, upon
     reasonable notice and at the expense of the Company, to visit and inspect
     the premises of the Company and/or other Covered Subsidiary, to examine the
     books of account of any such Persons and their Affiliates (and to make
     copies and/or extracts therefrom) and to discuss the affairs, finances and
     accounts of such Persons and their Affiliates with, and to be advised as to
     the same by, the officers of such Persons and to be advised as to such or
     other business records upon the request of the Investor.

          (c) Maintenance of Properties. The Company shall maintain, and shall
     cause each Covered Subsidiary to maintain, its corporate/legal existence
     and business, shall maintain, and shall cause such Covered Subsidiary to
     maintain, its assets in good operating conditions and repair (subject to
     ordinary wear and tear and casualty damage), and shall keep, and shall
     cause such Covered Subsidiary to keep, its business and assets adequately
     insured.

          (d) Notice of Material Events. The Company shall notify, and shall
     cause each Covered Subsidiary to notify, the Investor promptly in writing
     upon an Authorized Officer becoming aware of any of the following: (i) the
     occurrence of any Default or Event of Default, or any Accelerated
     Redemption Event, (ii) any noncompliance with any Environmental Law or
     proceeding in respect thereof which could have a Material Adverse Effect,
     (iii) any change of address of the Company or any other Covered Subsidiary,
     (iv) any threatened or pending litigation or similar proceeding affecting
     the Company or any Covered Subsidiary involving claims in excess of
     $500,000 in the aggregate or any material change in any such litigation or
     proceeding previously reported, (v) claims in excess of $500,000 in the
     aggregate against any assets or properties of the Company or any Covered
     Subsidiary encumbered in favor of the Investor and (vi) any other
     development that results in, or could reasonably be expected to result in,
     a Material Adverse Effect.

          (e) Use of Proceeds. The Company shall use, and shall cause each
     Covered Subsidiary to use, the proceeds of the sale of the Preferred Shares
     to the Investors pursuant to the Share Purchase Agreement only as permitted
     by Section 2(d) of the Share Purchase Agreement (for the avoidance of
     doubt, the proceeds of such sale shall not be used for the purpose of
     purchasing or carrying of "margin security" or "margin stock" within the
     meaning of Regulations U and X of the Board of Governors of the Federal
     Reserve System, 12 C.F.R. Parts 221 and 224). The Company shall not
     transfer, and shall not cause or permit each Covered Subsidiary to
     transfer, any of the proceeds of the sale of Preferred Shares to the
     Investors to, nor use any such proceeds for the benefit of, any of its
     Subsidiaries that is not a Covered Subsidiary.

          (f) Further Assurances.

                                       12

<PAGE>

               (i) The Company shall cooperate with, and shall cause each
          Covered Subsidiary to cooperate with, the Investor, take such action,
          execute such documents, and provide such information as the Investor
          may from time to time reasonably request.

               (ii) The Company shall promptly correct, and shall cause each
          Covered Subsidiary to promptly correct, upon request by any Investor,
          any defect or error that may be discovered in any Equity Document or
          in the execution, acknowledgment or recordation of the Equity
          Document. Promptly upon request by the Investor, the Company shall
          execute, authorize, acknowledge, deliver, record, file and register,
          and shall cause each Covered Subsidiary to execute, authorize,
          acknowledge, deliver, record, file and register, any and all such
          further acts, deeds, conveyances, documents, security agreements,
          pledge agreements, mortgages, deeds of trust, trust deeds,
          assignments, financing statements and continuations, notices of
          assignment, transfers, certificates, assurances and other instruments
          as the Investor may require from time to time in order to carry out
          more effectively the purposes of each Equity Document. Without
          limiting the foregoing, the Company shall, and shall cause each
          Covered Subsidiary to (A) authorize the filing of UCC-1 financing
          statements for all applicable jurisdictions, and (B) take such action
          from time to time (including, without limitation, authorizing, filing,
          executing and/or delivering such assignments, security agreement and
          other instruments) as shall be reasonably requested by the Investors
          to create, in favor of such Investors, to the extent required under
          the respective Equity Documents and to the maximum extent permitted
          under applicable law, a first-priority perfected Lien in all of the
          Collateral, subject only to Permitted Liens.

          (g) Bridge Loan. Company shall repay the Bridge Loan in full within
     five (5) Business Days from the date hereof.

          (h) Insurance. The Company shall maintain, and shall cause each
     Covered Subsidiary to maintain, at its respective expense, and keep in
     effect with responsible insurance companies, such liability insurance for
     bodily injury and third-party property damage as is customary in the case
     of companies engaged in the same or similar business or having similar
     properties, similarly situated. The Company shall keep and maintain, and
     shall cause each Covered Subsidiary to keep and maintain, at its expense,
     its material real and personal property insured against loss or damage by
     fire, theft, explosion, spoilage and all other risks ordinarily insured
     against by other owners or users of such properties in similar businesses
     in an amount equal to the full replacement or cash value thereof, subject
     to deductible amounts which the Company, in its reasonable judgment, deems
     prudent.

          (i) Information Regarding Collateral. The Company shall furnish, and
     shall cause each Covered Subsidiary to furnish, to the Investor prompt
     written notice of any change in (i) the Company or any Covered Subsidiary's
     corporate name or any trade name used to identify it in the conduct of its
     business or the Company's or any Covered Subsidiary's chief executive
     office, its principal place of business or its jurisdiction of
     organization, (ii) the Company or any Covered Subsidiary's identity or
     corporate structure or (iii) the Company or any Covered Subsidiary's
     federal Taxpayer Identification Number (if any). The Company shall not
     effect or permit, and shall not cause or permit each Covered

                                       13

<PAGE>

     Subsidiary to effect or permit, any change referred to in the preceding
     sentence unless all filings have been made under the UCC and all other
     actions have been taken that are required so that such change shall not at
     any time adversely affect the validity, perfection or priority of any Lien
     established under any Equity Document on the Collateral.

          (j) Existence; Conduct of Business. The Company shall do or cause to
     be done, and shall cause each Covered Subsidiary to do or cause to be done,
     all things necessary to preserve, renew and keep in full force and effect
     its legal existence and the rights, licenses, permits (including, without
     limitation, Environmental Permits) privileges, franchises, patent,
     copyrights, trademarks and trade names material to the conduct of its
     business.

          (k) Payment of Obligations. The Company shall pay, and shall cause
     each Covered Subsidiary to pay, its Indebtedness and other obligations,
     including Tax liability, before the same shall become delinquent or in
     default, except where (a) the validity or amount thereof is being contested
     in good faith by appropriate proceedings, (b) the Company or such Covered
     Subsidiary has set aside on its books adequate reserves with respect
     thereto in accordance with GAAP, (c) such contest effectively suspends
     collection of the contested obligation and the enforcement of any Lien
     securing such obligation and (d) the failure to make payment pending such
     contest would not result in a Material Adverse Effect.

          (l) Compliance with Laws. The Company shall comply, and shall cause
     each Covered Subsidiary to comply, with all laws (including, without
     limitation, all Environmental Laws), rules, licenses, permits, Regulations
     and orders of any Governmental Body applicable to it or its property,
     except where failures to do so, in the aggregate, would not result in a
     Material Adverse Effect.

          (m) Subsidiaries. If any Foreign Subsidiary is formed or acquired
     after the date hereof, the Company shall notify, and shall cause each
     Covered Subsidiary to notify, within three (3) Business Days after such
     Foreign Subsidiary is formed or acquired, the Investors thereof and, if
     such Foreign Subsidiary directly or indirectly holds any Media Assets or
     any outstanding shares of Capital Stock of a WFOE which is party to an
     Internal Control Agreement with respect to such Media Assers, cause any
     equity interest in or Indebtedness owned by or on behalf of any Covered
     Subsidiary to be added to the Collateral.

          (n) Additional Covered Subsidiary. The Company shall cause, and shall
     cause each Covered Subsidiary to cause, any wholly-owned Foreign
     Subsidiaries formed after the date hereof which directly or indirectly
     holds any Media Asset or any outstanding shares of Capital Stock of a WFOE
     which is party to an Internal Control Agreement with respect to such Media
     Assets (each, an "Additional Covered Subsidiary") to become a Covered
     Subsidiary subject to all the Obligations arising under this Agreement and
     any other Equity Document.

          (o) Reserved Shares. The Company shall reserve a sufficient number of
     shares of authorized Common Shares of the Company for issuance such that at
     all times there are enough such Common Shares to fully convert the shares
     upon election by the Investor to

                                       14

<PAGE>

     convert into the Company's Common Shares in accordance with the terms of
     the Articles of Association of the Company.

          (p) Additional Media Assets. Any Media Asset acquired after the date
     hereof shall be (i) held by the Company or Subsidiary of the Company or
     (ii) subject to an Internal Control Agreement with any Covered Subsidiary
     or wholly-owned Subsidiary of any Covered Subsidiary.

     Section 2.02. Termination of Covenants. Section 2.01 shall terminate and be
of no further force or effect upon redemption in full of the Preferred Shares;
provided, however, that such Section shall not terminate if the Investors elect
to convert the Preferred Shares held by such Investors into the Company's Common
Shares.

                                  ARTICLE III

                               Pre-Emptive Rights

     Section 3.01. Pre-Emptive Rights.

          (a) Delivery of Notice. Except with respect to an Exempt Issuance (as
     defined below), in the event that the Company proposes to issue or sell any
     of its Equity Securities to any Person, the Company shall first deliver to
     each of the Preferred Holders a written notice (the "Issuance Notice")
     stating (i) the Company's bona fide intention to issue or sell such Equity
     Securities, (ii) the number of Equity Securities to be issued or sold, and
     (iii) the price and terms upon which the Company proposes to issue or sell
     such Equity Securities.

          (b) Right to Elect. Each of the Preferred Holders shall have a period
     of 20 calendar days following the date on which such Preferred Holder
     actually receives the Issuance Notice from the Company in which to elect to
     purchase from the Company, at a price per share and on the terms specified
     in the Issuance Notice, a number of Equity Securities being issued or sold
     by the Company equal to the product of (A) a fraction, (I) the numerator of
     which is the number of Fully-Diluted Common Shares owned by such Preferred
     Holder, and (II) the denominator of which is the total number of
     Fully-Diluted Common Shares owned by all Holders, multiplied by (B) the
     number of Equity Securities to be issued or sold by the Company as set
     forth in the Issuance Notice.

          (c) Company's Right to Sell. Any Equity Securities referred to in the
     Issuance Notice that are not purchased under Section 3.01(b) by Preferred
     Holders may be issued and sold by the Company in accordance with the terms
     and conditions of, and at the price per share set forth in, the Issuance
     Notice. If such proposed issuance and sale of Securities is not consummated
     within 90 calendar days following the termination of the Preferred Holders'
     rights to acquire such shares in Section 3.01(b), the Company may not issue
     or sell any Equity Securities without complying again with all the
     provisions of this Section 3.01.

                                       15

<PAGE>

          (d) Exempt Issuance. Notwithstanding the foregoing, the Company shall
     be free to issue and sell Equity Securities without complying with the
     provisions of this Section 3.01 with respect to the issuance of any of the
     Company's Common Shares: (a) under any employee benefit plan, employee
     share option plan, share incentive plan or other similar plan adopted by
     the Company's Board of Directors (an "Exempt Plan") only to the extent that
     the total number of Company's Common Shares issued to such Exempt Plan on a
     fully-diluted as converted basis does not exceed the lesser of (i) 20% of
     the Fully-Diluted Common Shares determined as of the date immediately prior
     to such issuance and (ii) the maximum number of shares set forth next to
     Exempt Plans on Annex A, as adjusted in accordance with the provisions of
     the Articles of Association; (b) to any Person listed on Annex A (each, an
     "Exempt Issuee") in consideration for the contribution of assets as
     indicated on Annex A (the "Specified Contributed Assets"), (i) at an
     effective per share price equal to or greater than $3.00 per Company's
     Common Share and (ii) only to the extent that (A) the total number of
     Company's Common Shares issued to such Exempt Issuee on a fully-diluted as
     converted basis does not exceed the maximum number of shares set forth next
     to such Exempt Issuee's name on Annex A and (B) the Exempt Issuee
     contributes the Specified Contributed Assets in consideration for the
     issuance of such Company's Common Shares; or (c) not exceeding 0.5% of the
     lesser of (i) the Fully-Diluted Common Shares determined as of the date
     immediately prior to such issuance and (ii) the number equal to the sum of
     (A) the number of outstanding Fully-Diluted Common Shares determined as of
     the Original Issuance Date plus (B) the number of Fully-Diluted Common
     Shares issued pursuant to any Exempt Issuance under clauses (a) and (b) of
     this definition, each of (A) and (B) as adjusted in accordance with the
     provisions of the Articles of Association. For the avoidance of doubt, any
     issuance of Company's Common Shares pursuant to clause (a) of this
     definition for numbers of Company's Common Shares in excess of the maximum
     numbers listed on Annex A shall be subject to adjustments as set forth in
     the Articles of Association and any issuance of Company's Common Shares
     pursuant to clause (b) of this definition (w) for an effective per share
     price less than $3.00, (x) in consideration for assets other than the
     Specified Contributed Assets, (y) to any Person not listed on Annex A, or
     (z) for numbers of Company's Common Shares in excess of the maximum numbers
     listed on Annex A shall be subject to adjustments as set forth in the
     Articles of Association.

     Section 3.02. Termination of Pre-Emptive Rights. Section 3.01 shall
terminate and be of no further force or effect upon the earlier of consummation
of a QIPO or the redemption in full of the Preferred Shares; provided, however,
that such Section shall not terminate, in the case of redemption, if the
Investors elect to convert the Preferred Shares held by such Investors into the
Company's Common Shares.

                                   ARTICLE IV

                                    Transfers

     Section 4.01. Transfers. The Holders may freely Transfer any Equity
Securities provided that such Transfer is in compliance with all of the
requirements of the Securities Act and all other applicable securities laws.

                                       16
<PAGE>

     Section 4.02. Legends.

          (a) Legends. Each certificate representing Equity Securities now owned
     or hereafter acquired by the Holders shall bear the following legends:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").
          THE SECURITIES MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE
          DISTRIBUTED EXCEPT (i) IN CONJUNCTION WITH AN EFFECTIVE REGISTRATION
          STATEMENT FOR THE SECURITIES UNDER THE ACT OR (ii) IN COMPLIANCE WITH
          RULE 144, OR (iii) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
          THE ACT."

          (b) Removal of Legend and Transfer Restrictions. The legend set forth
     in Section 4.03(a) and any stop transfer instructions with respect to such
     legend shall be removed, and the Company shall issue a certificate without
     such legend to the Holder of such Equity Securities if (A) such Equity
     Securities are registered and sold under the Securities Act and a
     prospectus meeting the requirements of Section 10 of the Securities Act is
     available, (B) such Equity Securities are sold to the public in a
     transaction satisfying the requirements of Rule 144, or (C) if such Holder
     satisfies the requirements of Rule 144(k), or (D) the legend is no longer
     required by law.

     Section 4.03. Co-Sale Rights.

          (a) Delivery of Notice. In the event that the Parent (a "Transferring
     Holder") at any time proposes to Transfer any of the Equity Securities now
     owned or hereafter acquired by such Transferring Holder to any Person who
     shall make a good faith, bona fide written offer therefor, the Transferring
     Holder shall first deliver to each Preferred Holder a written notice (such
     written notice being a "Co-Sale Notice") stating (i) that the Transferring
     Holder intends to make such Transfer, (ii) the number and type of Equity
     Securities proposed to be Transferred (the "Offered Securities"), (iii) the
     identity (including the name and address) of the prospective transferee or
     transferees (the "Proposed Transferee"), (iv) the type and amount of
     consideration for the Offered Securities and (v) the material terms and
     conditions upon which the proposed Transfer is to be made (the date on
     which each Preferred Holder receives the Co-Sale Notice being the "Co-Sale
     Notice Date").

          (b) Right to Elect. Each Preferred Holder shall have a period of 15
     calendar days following the Co-Sale Notice Date in which to elect to sell
     to the Proposed Transferee (i) such Preferred Holder's Equity Securities of
     the same class as the Offered Securities on the terms and conditions and at
     the price per Equity Security stated in the Co-Sale Notice, and (ii) such
     Preferred Holder's Preferred Shares, on an as-converted basis, on the same
     terms and conditions and at the price per Equity Security stated in the
     Co-Sale Notice. Each Preferred Holder so electing to sell (each, a "Co-Sale
     Holder") shall within such 15 calendar day period deliver to the
     Transferring Holder and the Company a written notice (a "Co-Sale Election
     Notice") stating that the Co-Sale Holder wishes to participate in such
     Transfer. All Common Shares shall be deemed one class for purposes of this
     Section 4.03.

                                       17

<PAGE>

          (c) Number of Securities to Be Sold. The Co-Sale Election Notice shall
     set forth the number of Equity Securities that the Co-Sale Holder wishes to
     sell (such Equity Securities being the "Co-Sale Securities"), which number
     of Equity Securities shall be calculated in accordance with this subsection
     (c).

               (i) If the Transferring Holder is proposing to Transfer Preferred
          Shares, each Co-Sale Holder may sell up to a number of Preferred
          Shares (or Preferred Shares that on an as-converted basis equals such
          number of Common Shares) equal to the product of (A) a fraction, (I)
          the numerator of which is the number of Preferred Shares owned by the
          Co-Sale Holder on the date of the Co-Sale Notice and (II) the
          denominator of which is the total number of Preferred Shares owned by
          the Transferring Holder and all of the Co-Sale Holders on the date of
          the Co-Sale Notice, multiplied by (B) the aggregate number of
          Preferred Shares to be sold by the Transferring Holder to the Proposed
          Transferee as set forth in the Co-Sale Notice.

               (ii) If the Transferring Holder is proposing to Transfer Common
          Shares, each Co-Sale Holder may sell up to a number of Common Shares
          equal to the product of (A) a fraction, (I) the numerator of which is
          the number of Fully-Diluted Common Shares owned by the Co-Sale Holder
          on the date of the Co-Sale Notice and (II) the denominator of which is
          the total number of Fully-Diluted Common Shares owned by the
          Transferring Holder and all of the Co-Sale Holders on the date of the
          Co-Sale Notice, multiplied by (B) the aggregate number of Common
          Shares to be sold by the Transferring Holder to the Proposed
          Transferee as set forth in the Co-Sale Notice.

          (d) Mechanics of Co-Sale.

               (i) Each Co-Sale Holder shall Transfer its Co-Sale Securities to
          the Proposed Transferee at the time and place at which the
          Transferring Holder shall Transfer its Offered Securities to the
          Proposed Transferee. No Co-Sale Holder shall be obligated to Transfer
          any Co-Sale Securities to the Proposed Transferee if the Transferring
          Holder defaults in its obligation to Transfer its Offered Securities
          to the Proposed Transferee.

               (ii) In connection with any such co-sale of Co-Sale Securities
          under this Section 4.03, each Co-Sale Holder agrees to enter into and
          deliver a purchase and sale agreement for the benefit of the Proposed
          Transferee in connection with the Transfer of their Co-Sale Securities
          under this Section 4.03, which purchase and sale agreement shall
          contain standard and customary representations, warranties, covenants
          and indemnities by the Co-Sale Holders for the benefit of the Proposed
          Transferee; provided, however, that such representations, warranties,
          covenants and indemnities shall be substantially similar to those made
          by the Transferring Holder for the benefit of the Proposed Transferee.

               (iii) In the event that a Co-Sale Holder shall be required to
          convert Preferred Shares into Common Shares in connection with such
          sale, the Company agrees to convert any such Preferred Shares
          concurrent with the actual sale of such shares to the Proposed
          Transferee and contingent on such sale to the Proposed Transferee.

                                       18

<PAGE>

               (iv) If any Co-Sale Holder defaults in its obligation to Transfer
          Co-Sale Securities, the Transferring Holder and the other Co-Sale
          Holders may (but shall not be obligated to) Transfer to the Proposed
          Transferee (on a pro-rata basis) an additional number of Preferred
          Shares or Common Shares, as the case may be, not greater than the
          number of shares with respect to which default was made and thereafter
          the defaulting Co-Sale Holder shall not be entitled or obligated to
          Transfer to the Proposed Transferee such shares.

          (e) Transferring Holder's Right to Sell. If the Transferring Holder
     has received one or more Co-Sale Election Notices, the Transferring Holder
     may not Transfer any Offered Securities to the Proposed Transferee unless
     the Proposed Transferee shall simultaneously purchase all of the Co-Sale
     Securities for the same consideration (if applicable, on an as-converted
     basis) and on the same terms and conditions as the proposed sale described
     in the Co-Sale Notice. In the event that the material terms or conditions
     of the Transfer to the Proposed Transferee set forth in the Co-Sale Notice
     shall be modified, or the Proposed Transferee shall refuse to purchase
     Co-Sale Securities from a Co-Sale Holder exercising its rights of co-sale
     hereunder, the Transferring Holder shall not Transfer to the Proposed
     Transferee any Offered Securities without again complying with all of the
     terms and provisions of this Section 4.03 hereof. In addition, any Offered
     Securities referred to in the Co-Sale Notice that are not Transferred by
     the Transferring Holder to the Proposed Transferee in compliance with this
     Section 4.03 prior to the date which is 90 calendar days following the
     termination of the rights of the Preferred Holders to elect to participate
     in such Transfer pursuant to Section 4.03(b), may not be Transferred by the
     Transferring Holder without complying again with all the provisions of this
     Section 4.03.

          (f) Termination of Co-Sale Right. The rights described under Section
     4.03 shall terminate and be of no further force or effect upon redemption
     in full of the Preferred Shares; provided, however, that such rights shall
     not terminate if the Investors elect to convert the Preferred Shares held
     by such Investors into the Company's Common Shares.

     Section 4.04. Right to sell in IPO or QIPO. In the event there is an IPO or
QIPO by the Company, then upon request for participation in the IPO or QIPO by
the Investors, the Company shall use its best efforts to cause to be sold in the
IPO or QIPO, as applicable, the maximum number of Common Shares designated by
the Investors.

                                    ARTICLE V

                               Registration Rights

     Section 5.01. Demand Registration.

          (a) Request for Registration. If at any time after the date that is
     180 days following the date of the consummation of an IPO in the United
     States, the Company shall receive a written request (a "Demand Notice")
     from Preferred Holders holding shares that represent at least 2% of the
     outstanding Common Shares of the Company (as such number may be adjusted
     for stock splits, stock dividends, recapitalizations, reorganizations and
     other

                                       19

<PAGE>

     similar transactions) of the outstanding Registrable Securities requesting
     that the Company file a Registration Statement under the Securities Act
     registering for resale Registrable Securities (such Holders being referred
     to herein as the "Initiating Holders") (the date on which the Company
     receives the Demand Notice being the "Demand Notice Date"), the Company
     shall promptly (but in any event within 5 calendar days) after the Demand
     Notice Date, forward a copy of the Demand Notice to all of the Registrable
     Security Holders. Each of the Registrable Security Holders shall have a
     period of 20 calendar days after receiving the Demand Notice from the
     Company in which to elect to include some or all of such Registrable
     Security Holder's Registrable Securities in such Registration Statement.
     The Registrable Security Holders shall exercise their right to include
     Registrable Securities in such Registration Statement by delivering a
     written notice to the Company within such 20 calendar day period specifying
     the number of Registrable Securities such Registrable Security Holder
     wishes to include in such Registration Statement (such electing Registrable
     Security Holders, together with the Initiating Holders being the
     "Registering Holders").

          (b) Filing and Effectiveness of Registration Statement. The Company
     shall prepare and file with the SEC, no later than 90 calendar days after
     the Demand Notice Date, a Registration Statement registering for resale by
     the Registering Holders a sufficient number of Common Shares for the
     Registering Holders to sell the Registrable Securities requested to be
     registered. The Company shall use its reasonable best efforts to cause such
     Registration Statement to be declared effective no later than the earlier
     of (i) five (5) calendar days after the date on which the Company receives
     notice from the SEC that such Registration Statement may be declared
     effective and (ii) the date which is 120 calendar days after the Demand
     Notice Date (such date being the "Required Effectiveness Date"). The
     Company shall use its reasonable best efforts to cause the Registration
     Statement filed pursuant to this Section 5.01 to remain effective until the
     earlier of (A) the date on which all Registrable Securities registered
     pursuant to such Registration Statement shall have been sold to the public
     and (B) the date which is 180 calendar days after the date on which such
     Registration Statement is declared effective by the SEC.

          (c) Underwritten Offering.

               (i) If the Initiating Holders intend to distribute the
          Registrable Securities covered by their Demand Notice by means of an
          underwriting, they shall so advise the Company as a part of their
          Demand Notice. In such event, the right of any Registrable Security
          Holder to include its Registrable Securities in such registration
          shall be conditioned upon such Registrable Security Holder's
          participation in such underwriting and the inclusion of such
          Registrable Security Holder's Registrable Securities in the
          underwriting (unless otherwise mutually agreed by Initiating Holders
          holding a majority of the Registrable Securities held by the
          Initiating Holders to be registered hereunder and such Registrable
          Security Holder) to the extent provided herein. In connection with
          such an underwritten offering, the Company shall have the right to
          select the managing underwriter or underwriters, subject to the
          reasonable approval of Initiating Holders holding a majority of the
          Registrable Securities. All Registering Holders proposing to
          distribute their Registrable Securities through such underwriting
          shall enter into an underwriting agreement in customary form with the
          underwriter or underwriters, subject to the limitations set forth in
          Section 5.07 hereof,

                                       20

<PAGE>

          and the representations and warranties by, and the other agreements on
          the part of, the Company to and for the benefit of such underwriters,
          shall also be made to and for the benefit of the Registering Holders.

               (ii) Notwithstanding any other provision of this Section 5.01, if
          the underwriter advises the Company that in the opinion of such
          underwriter, the distribution of all of the Registrable Securities
          requested to be registered would materially and adversely affect the
          distribution of all of the securities to be underwritten, then (x) the
          Company shall deliver to the Registering Holders a copy of such
          underwriter's opinion, which opinion shall be in writing and shall
          state the reasons for such opinion and (y) the number of Equity
          Securities (including the Registrable Securities) that may be included
          in such registration shall be allocated in the order listed below. Any
          Registrable Securities excluded or withdrawn from such underwriting
          shall be withdrawn from the registration.

                    (A) first, to the Initiating Holders;

                    (B) second, to the other Preferred Holders electing to
          register their Registrable Securities, on a pro rata basis based on
          the number of Registrable Securities held by such other Preferred
          Holders;

                    (C) third, to the other Registering Holders of such
          Registrable Securities on a pro rata basis based on the number of
          Registrable Securities held by such other Registering Holders; and

                    (D) finally, to the other Persons proposing to register
          securities in such registration, if any.

          (d) Limitations on Registration. The Company shall not be required to
     effect a registration pursuant to this Section 5.01:

               (i) after the Company has effected 2 registrations pursuant to
          this Section 5.01, and such registrations have been declared or
          ordered effective; provided, however, that in the event that the
          number of Registrable Securities included in any registration pursuant
          to this Section 5.01 is reduced by more than 50% of the number of
          Registrable Securities proposed to be registered pursuant to Section
          5.01(a) in any registration, then such registration shall not count as
          a registration for purposes of this Section 5.01;

               (ii) during the period starting with the date which is 60
          calendar days prior to the Company's good faith estimate of the date
          of the filing of, and ending on a date 180 calendar days following the
          effective date of, a Company-initiated registration subject to Section
          5.02 below, provided that the Company is actively employing in good
          faith all reasonable efforts to cause such registration statement to
          become effective;

               (iii) if the Company shall furnish to the Initiating Holders
          requesting a registration pursuant to this Section 5.01 a certificate
          signed by the Company's

                                       21

<PAGE>

          Authorized Officer stating that a Potential Material Event exists, in
          which event the Company shall have the right to defer such filing for
          a period of not more than 90 calendar days after the Demand Notice
          Date, provided that such right to delay a request may not be exercised
          by the Company more than twice in any 12-month period with at least a
          60 calendar day interval between such "black-out" periods; or

               (iv) if the Initiating Holders, together with the holders of any
          other Securities of the Company entitled to inclusion in such
          registration statement, propose to sell Registrable Securities and
          such other Securities (if any) whereby the aggregate proceeds of which
          (after deduction for underwriter's discounts and expenses related to
          the issuance) are less than $5,000,000.

     Section 5.02. Piggyback Registration.

          (a) Company Registration. If the Company proposes to register
     (including for this purpose a registration effected by the Company for
     shareholders other than the Registrable Security Holders) any of its Equity
     Securities under the Securities Act in connection with the public offering
     (including the IPO) of such securities, the Company shall promptly give
     each Registrable Security Holder written notice of such registration at
     least 30 calendar days prior to the filing of such Registration Statement
     with the SEC. Each of the Registrable Security Holders shall have a period
     of 20calendar days after receiving such written notice from the Company in
     which to elect to include some or all of such Registrable Security Holder's
     Registrable Securities in such Registration Statement. The Registrable
     Security Holders shall exercise their right to include Registrable
     Securities in such Registration Statement by delivering a written notice to
     the Company within such 20 calendar day period specifying the number of
     Registrable Securities such Registrable Security Holder wishes to include
     in such Registration Statement (such electing Registrable Security Holders
     being referred to as the "Piggyback Holders"). Subject to the provisions of
     Sections 5.01(c) and 5.02(c) hereof, the Company shall use its reasonable
     best efforts to include the Registrable Securities requested to be included
     by the Piggyback Holders in the Company Registration Statement.

          (b) Underwritten Offerings.

               (i) If the registration for which the Company gives notice to the
          Registrable Security Holders under Section 5.02(a) is an underwritten
          offering, the Company shall not be required under this Section 5.02 to
          include any of the Piggyback Holders' Registrable Securities in such
          underwriting unless the Piggyback Holders accept the terms of the
          underwriting as agreed upon between the Company and the underwriters.
          In connection with such an underwritten offering, the Company (or
          other Persons who may be entitled to select the underwriters) shall
          have the right to select the managing underwriter or underwriters. All
          Piggyback Holders proposing to distribute their Registrable Securities
          through such underwriting shall enter into an underwriting agreement
          in customary form with the underwriter or underwriters, subject to the
          limitations set forth in Section 5.07 hereof. If any Piggyback Holder
          does not approve of the terms of such underwriting, the Piggyback
          Holder may elect to withdraw from such offering by providing written
          notice to the Company and the underwriter.

                                       22

<PAGE>

               (ii) Notwithstanding any other provision of this Section 5.02, if
          the underwriter advises the Company that in the opinion of such
          underwriter, the distribution of all of the Registrable Securities
          requested to be registered would materially and adversely affect the
          distribution of all of the securities to be underwritten, then (x) the
          Company shall deliver to the Piggyback Holders a copy of such
          underwriter's opinion, which opinion shall be in writing and shall
          state the reasons for such opinion and (y) the number of Equity
          Securities (including the Registrable Securities) that may be included
          in such registration shall be allocated in the order listed below. If
          so determined by the underwriter, all Registrable Securities shall be
          excluded from such registration and underwritten offering. Any
          Registrable Securities excluded or withdrawn from such underwriting
          shall be withdrawn from the registration.

                    (A) first, to the Company;

                    (B) second, to the Preferred Holders electing to register
          their Registrable Securities, on a pro rata basis based on the number
          of Registrable Securities held by such Preferred Holders; and

                    (C) third, to the other Piggyback Holders on a pro rata
          basis based on the number of Registrable Securities held by such other
          Piggyback Holders; and

                    (D) finally, to the other Persons proposing to register
          securities in such registration, if any.

     Section 5.03. F-3 or S-3 Registration.

          (a) F-3 or S-3 Registration. If, at any time after the first date on
     which the Company is eligible to file a registration statement under the
     Securities Act on Form F-3 or S-3 (or, if applicable, Form SB-2), or such
     similar or successor form as may be appropriate, the Company shall receive
     from any Registrable Security Holder holding at least shares representing
     2% of the outstanding Common Shares of the Company (as such number may be
     adjusted for stock splits, stock dividends, recapitalizations,
     reorganizations and other similar transactions) of the outstanding
     Registrable Securities a written request (an "F-3 or S-3 Notice") that the
     Company effect a registration on Form F-3 or S-3 (or, if applicable, Form
     SB-2), or such similar or successor form as may be appropriate, and any
     related qualification or compliance with respect to the Registrable
     Securities (the date on which the Company receives the F-3 or S-3 Notice
     being the "F-3 or S-3 Notice Date"), the Company shall promptly (but in any
     event within 5 calendar days) after the F-3 or S-3 Notice Date, forward a
     copy of the F-3 or S-3 Notice to all of the Registrable Security Holders.
     Each of the Registrable Security Holders shall have a period of 20 calendar
     days after receiving the F-3 or S-3 Notice from the Company in which to
     elect to include some or all of such Registrable Security Holder's
     Registrable Securities in such Registration Statement. The Registrable
     Security Holders shall exercise their right to include Registrable
     Securities in such Registration Statement by delivering a written notice to
     the Company within such 20 calendar day period specifying the number of
     Registrable Securities such Registrable Security Holder wishes to include
     in such Registration Statement (such electing Registrable Security Holders,
     together with the Registrable

                                       23

<PAGE>

     Security Holders delivering the F-3 or S-3 Notice to the Company being the
     "F-3 or S-3 Holders").

          (b) Filing and Effectiveness of Registration Statement. The Company
     shall prepare and file with the SEC, no later than 30 calendar days after
     the F-3 or S-3 Notice Date, a Registration Statement on Form F-3 or S-3
     (or, if applicable, Form SB-2), or such similar or successor form as may be
     appropriate, covering, and shall obtain all such qualifications and
     compliances as may be required and as would permit the sale and
     distribution of, all Registrable Securities. The Company shall use its
     reasonable best efforts to cause such Registration Statement to be declared
     effective no later than the earlier of (i) five (5) calendar days after the
     date on which the Company receives notice from the SEC that such
     Registration Statement may be declared effective and (ii) 60 calendar days
     after the F-3 or S-3 Notice Date (such date being the "Required F-3 or S-3
     Effectiveness Date"). The Company shall its reasonable best efforts to
     cause the Registration Statement filed pursuant to this Section 5.03 to
     remain effective until the earlier of (A) the date on which all Registrable
     Securities registered pursuant to such Registration Statement shall have
     been sold to the public and (B) the date on which all of the Registrable
     Securities requested to be registered by the F-3 or S-3 Holders can be
     freely sold to the public pursuant to Rule 144 without any volume
     limitations.

          (c) Limitations on Registration. The Company shall not be required to
     effect a registration pursuant to this Section 5.03:

               (i) if at the time of the request, Form F-3 or S-3 or Form SB-2
          (or such similar or successor form as may be applicable) is not
          available to the Company for such offering;

               (ii) if the Company shall furnish to the F-3 or S-3 Holders
          requesting a registration pursuant to this Section 5.03 a certificate
          signed by the Company's Authorized Officer stating that a Potential
          Material Event exists, in which event the Company shall have the right
          to defer such filing for a period of not more than 90 calendar days
          after the F-3 or S-3 Notice Date, provided that such right to delay a
          request may not be exercised by the Company more than twice in any
          12-month period with at least a 60 calendar day interval between such
          "black-out" periods; or

               (iii) if the Initiating Holders, together with the holders of any
          other securities of the Company entitled to inclusion in such
          registration statement, propose to sell Registrable Securities and
          other such Securities (if any) whereby the aggregate proceeds of which
          (after deduction for underwriter's discounts and expenses related to
          the issuance) are less than $1,000,000..

     Section 5.04. Expenses of Registration. All Registration Expenses incurred
in connection with any registration, filing, qualification or compliance
pursuant to Sections 5.01, 5.02 or 5.03 shall be borne by the Company. Unless
otherwise stated, all Selling Expenses relating to Registrable Securities
registered by the Registrable Security Holders shall be borne by the Registrable
Security Holders holding such Registrable Securities pro rata on the basis of
the number of Registrable Securities so registered.

                                       24

<PAGE>

     Section 5.05. Further Obligations of the Company. Whenever the Company is
required to effect the registration of any Registrable Securities pursuant to
this Article V, the Company shall:

          (a) Filing and Effectiveness of Registration Statement. With respect
     to a Registration Statement required by Section 5.01 or 5.03, the Company
     shall (i) prepare and file with the SEC a Registration Statement, (ii)
     cause such Registration Statement to become effective, and (iii) maintain
     the effectiveness of such Registration Statement, in each case, as of the
     dates and for the periods required by Section 5.01 or 5.03, as the case may
     be, which Registration Statement (including any amendments or supplements
     thereto and prospectuses contained therein) shall not contain any untrue
     statement of a material fact or omit to state a material fact required to
     be stated therein or necessary to make the statements therein, in light of
     the circumstances in which they were made, not misleading.

          (b) Filing of Amendments and Supplements. Prepare and file with the
     SEC such amendments (including post-effective amendments) and supplements
     to the Registration Statement and the prospectus used in connection with
     the Registration Statement as may be necessary to keep the Registration
     Statement effective and to comply with the provisions of the Securities Act
     with respect to the disposition of all Registrable Securities and other
     securities of the Company covered by the Registration Statement at all
     times during the period for which the Company is required to maintain the
     effectiveness of such Registration Statement pursuant to the terms of this
     Agreement.

          (c) Copies of Documents. Furnish to each Registrable Security Holder
     selling such Registrable Securities by means of such Registration
     Statement, without charge, such number of conformed copies of such
     Registration Statement and of each such amendment and supplement thereto
     (in each case including all exhibits), such number of copies of the
     prospectus included in such Registration Statement (including each
     preliminary prospectus and any summary prospectus), in conformity with the
     requirements of the Securities Act, such documents incorporated by
     reference in such Registration Statement or prospectus, and such other
     documents, as such Registrable Security Holder may reasonably request.

          (d) Opinion and Comfort Letter. Furnish to each Registrable Security
     Holder selling such Registrable Securities by means of such Registration
     Statement (i) an opinion of the counsel representing the Company for
     purposes of such registration, dated the effective date of such
     Registration Statement (or, if such registration includes an underwritten
     public offering, dated the date of the closing under the underwriting
     agreement with respect to both the effective date of the Registration
     Statement and the date of the closing under the underwriting agreement), in
     form and substance as is customarily given by counsel for the issuer to
     underwriters in an underwritten public offering, addressed to the
     underwriters, if any, and to such Registrable Security Holders, and (ii) a
     "cold comfort" letter, dated the effective date of such Registration
     Statement (and, if such Registration Statement includes an underwritten
     public offering, dated the date of the closing under the underwriting
     agreement) signed by the independent certified public accountants who have
     certified the Company's financial statements included in such Registration
     Statement, in form and substance as is customarily given by independent
     certified public accountants to underwriters in an underwritten public
     offering, addressed to the underwriters, if any, and to such Registrable
     Security Holders.

                                       25

<PAGE>

          (e) "Blue Sky" Qualification. Register or qualify all Registrable
     Securities and other securities covered by such Registration Statement
     under the securities or blue sky laws of such jurisdictions as the
     Registrable Security Holders (or in an underwritten offering, the managing
     underwriter) shall reasonably request, and do any and all other acts and
     things which may be necessary or advisable to enable the Registrable
     Security Holders to consummate the disposition in such jurisdictions of its
     Registrable Securities covered by such Registration Statement, except that
     the Company shall not for any such purpose be required to qualify generally
     to do business as a foreign corporation in any jurisdiction wherein it is
     not so qualified, or to subject itself to taxation in any such
     jurisdiction, or to consent to general service of process in any such
     jurisdiction.

          (f) Notification of Certain Events. As promptly as practicable after
     becoming aware thereof, notify each Registrable Security Holder of the
     happening of any event of which the Company has knowledge, as a result of
     which the prospectus included in the Registration Statement, as then in
     effect, includes an untrue statement of a material fact or omits to state a
     material fact required to be stated therein or necessary to make the
     statements therein, in light of the circumstances under which they were
     made, not misleading, and promptly prepare and file with the SEC a
     supplement or amendment to the Registration Statement or other appropriate
     filing with the SEC to correct such untrue statement or omission, and
     deliver a number of copies of such supplement or amendment to each
     Registrable Security Holder selling Registrable Securities pursuant to such
     Registration Statement as such Holder may reasonably request.

          (g) SEC Stop Orders. As promptly as practicable after becoming aware
     thereof, notify each Registrable Security Holder who holds Registrable
     Securities being sold (and, in the event of an underwritten offering, the
     managing underwriters) of the issuance by the SEC of any notice of
     effectiveness or any stop order or other suspension of the effectiveness of
     the Registration Statement at the earliest possible time.

          (h) Potential Material Event. As promptly as practicable after
     becoming aware thereof, notify each Registrable Security Holder who holds
     Registrable Securities being sold (and, in the event of an underwritten
     offering, the managing underwriters) of the existence of a Potential
     Material Event, in which case, the Registrable Security Holders shall not
     offer or sell any Registrable Securities, or engage in any other
     transaction involving or relating to the Registrable Securities, from the
     time of the giving of notice with respect to a Potential Material Event
     until such Registrable Security Holder receives written notice from the
     Company that such Potential Material Event either has been disclosed to the
     public or no longer constitutes a Potential Material Event; provided,
     however, that the Registrable Security Holders may only be required to
     cease offering and selling Registrable Securities pursuant to this clause
     (h) for a period of not more than 90 calendar days after receiving notice
     from the Company that a Potential Material Event exists; provided, further,
     however, that the Company may only exercise its rights under this clause
     (h) twice in any 12-month period with at least a 60 calendar day interval
     between such "black-out" periods.

          (i) Listing Requirements. Use its reasonable best efforts to list such
     Registrable Securities on each securities exchange on which the Equity
     Securities of the Company are then listed.

                                       26

<PAGE>

          (j) Certificate Preparation. Cooperate with the Registrable Security
     Holders who hold Registrable Securities being offered to facilitate the
     timely preparation and delivery of certificates for the Registrable
     Securities to be offered pursuant to the Registration Statement and enable
     such certificates for the Registrable Securities to be in such
     denominations or amounts as the case may be, as the Registrable Security
     Holders may reasonably request, and, within 2 Business Days after a
     Registration Statement which includes Registrable Securities is ordered
     effective by the SEC, the Company shall deliver, or shall cause legal
     counsel selected by the Company to deliver, to the transfer agent for the
     Registrable Securities (with copies to the Registrable Security Holders
     whose Registrable Securities are included in such Registration Statement)
     an appropriate instruction and opinion of such counsel.

          (k) Underwriting Agreement. In the event of any underwritten public
     offering, enter into and perform its obligations under an underwriting
     agreement, in usual and customary form and complying with the provisions of
     Section 5.07, with the managing underwriter of such offering. Each
     Registrable Security Holder participating in such underwriting shall also
     enter into and perform his or its obligations under such agreement.

          (l) Section 11 Information. Make available to the Holders, as soon as
     reasonably practicable, an earnings statement covering the period of at
     least 12 months, but not more than 18 months, beginning with the first
     month of the first fiscal quarter after the effective date of such
     Registration Statement, which earnings statement shall satisfy the
     provisions of Section 11(a) of the Securities Act, including, without
     limitation, Rule 158 promulgated thereunder.

          (m) Other Actions. Take all other reasonable actions necessary to
     expedite and facilitate disposition by the Registrable Security Holders of
     the Registrable Securities pursuant to the Registration Statement.

     Section 5.06. Preparation; Reasonable Investigation; Review by Counsel. In
connection with the preparation and filing of each Registration Statement
registering Registrable Securities under the Securities Act, the Registrable
Security Holders on whose behalf such Registrable Securities are to be so
registered, their underwriters, if any, and one counsel for all of the
Registrable Security Holders holding such Registrable Securities (and one
counsel in each applicable jurisdiction) shall:

          (a) be permitted to review such Registration Statement, each
     prospectus included therein or filed with the SEC, and each amendment
     thereof or supplement thereto a reasonable period of time (but not less
     than 3 Business Days) prior to their filing with the SEC; and

          (b) be given reasonable access to the Company's books and records and
     such opportunities to discuss the business of the Company with its
     officers, counsel and the independent public accountants who have certified
     its financial statements as shall be necessary, in the opinion of such
     Registrable Security Holders, such underwriters, if any, or their
     respective counsel, to conduct a reasonable investigation within the
     meaning of the Securities Act.

                                       27

<PAGE>

     Section 5.07. Indemnification. In the event any Registrable Securities are
included in a Registration Statement under this Article V, the following
indemnification provisions shall apply.

          (a) Indemnification by the Company.

               (i) Indemnification. To the extent permitted by law, the Company
          shall indemnify and hold harmless each Registrable Security Holder,
          each of the employees, officers, directors, partners, members,
          managers, legal counsel and agents of each Registrable Security
          Holder, any underwriter (as defined in the Securities Act) for such
          Registrable Security Holder and each Person, if any, who controls such
          Registrable Security Holder or underwriter within the meaning of the
          Securities Act or Exchange Act (collectively, the "Holder Indemnified
          Persons") against and hold each Holder Indemnified Person harmless
          from any and all liabilities, obligations, losses, damages, lawsuits,
          investigations, arbitrations, actions, judgments, costs, expenses or
          claims, including, without limitation, reasonable attorneys' fees and
          expenses incurred in investigation or defending any of the foregoing
          (collectively, "Losses"), that the Holder Indemnified Persons may
          suffer or sustain arising out of or due to any of the following (any
          of the following being a "Violation"):

                    (A) any untrue statement or alleged untrue statement of a
          material fact contained in such Registration Statement, including any
          preliminary prospectus or final prospectus contained therein or any
          amendments or supplements thereto;

                    (B) the omission or alleged omission to state therein a
          material fact required to be stated therein, or necessary to make the
          statements therein not misleading; or

                    (C) any violation or alleged violation by the Company of the
          Securities Act, the Exchange Act, any state securities law or any rule
          or regulation promulgated under the Securities Act, the Exchange Act
          or any state securities law, or any applicable securities laws or
          Regulations of a jurisdiction outside the United States.

               (ii) Limitations on Indemnification. Notwithstanding the
          foregoing, the Company shall not be liable for:

                    (A) any amounts paid in settlement of any such Losses if
          such settlement is effected without the consent of the Company (which
          consent shall not be unreasonably withheld or delayed); or

                    (B) any Losses to the extent that such Losses arise out of
          or are based upon a Violation which occurs in reliance upon and in
          strict conformity with written information furnished by the
          Registrable Security Holder expressly for use in connection with such
          registration.

          (b) Indemnification by the Registrable Security Holders.

                                       28

<PAGE>

               (i) Indemnification. To the extent permitted by law, each
          Registrable Security Holder, severally and not jointly and severally,
          shall indemnify and hold harmless the Company, each of the Company's
          employees, officers, directors, legal counsel and other agents, any
          underwriter (as defined in the Securities Act) for the Company and
          each Person, if any, who controls the Company or underwriter within
          the meaning of the Securities Act or Exchange Act (collectively, the
          "Company Indemnified Persons"), against and hold each Company
          Indemnified Person harmless from any and all Losses that the Company
          Indemnified Persons may suffer or sustain arising out of or due to any
          Violation, in each case to the extent (and only to the extent) that
          such Violation occurs in reliance upon and in strict conformity with
          written information furnished by such Registrable Security Holder
          expressly for use in connection with such registration.

               (ii) Limitations on Indemnification. Notwithstanding the
          foregoing, no Registrable Security Holder shall be liable for:

                    (A) indemnification pursuant to this Agreement in excess of
          the aggregate net cash proceeds received by such Registrable Security
          Holder from the offering of Registrable Securities in such
          registration;

                    (B) any amounts paid in settlement of any such Losses if
          such settlement is effected without the consent of such Registrable
          Security Holder; or

                    (C) any Losses to the extent that such Losses do not arise
          out of or are not based upon a Violation which occurs in reliance upon
          and in strict conformity with written information furnished by such
          Registrable Security Holder expressly for use in connection with such
          registration.

          (c) Indemnification Mechanics. If there occurs an event which a
     Company Indemnified Person or a Holder Indemnified Person (any such Person
     being the "Indemnitee") hereto asserts is an indemnifiable event pursuant
     to this Section, the Indemnitee shall promptly notify the party obligated
     to provide indemnification hereunder (the "Indemnitor") in writing of such
     event. Delay or failure to so notify the Indemnitor shall only relieve the
     Indemnitor of its obligations to the extent, if at all, that it is actually
     prejudiced by reason of such delay or failure. The Indemnitor shall have a
     period of 20 calendar days in which to respond thereto. If the Indemnitor
     accepts responsibility within such 20 calendar day period, then the
     Indemnitor shall be obligated to compromise or defend, at its own expense,
     such matter, and the Indemnitor shall provide the Indemnitee with such
     assurances as may be reasonably required by the Indemnitee to assure that
     the Indemnitor shall assume and be responsible for the Losses at issue
     (subject to the limitations set forth in this Agreement). If the Indemnitor
     fails to assume the defense of such matter within such 20 calendar day
     period or does not respond within such 20 calendar day period, the
     Indemnitee against which such matter has been asserted shall (upon
     delivering notice to such effect to the Indemnitor) have the right to
     undertake, at the Indemnitor's cost and expense, the defense, compromise or
     settlement of such matter on behalf of the Indemnitee. In any event, the
     Indemnitee shall have the right to participate at its own expense in the
     defense of such asserted liability; provided, however, that the Indemnitor
     shall pay the expenses of such defense if the Indemnitee is advised by
     counsel

                                       29

<PAGE>

     in writing that there are one or more legal defenses available to the
     Indemnitee that are different from or additional to those available to the
     Indemnitor (in which case, if the Indemnitee notifies the Indemnitor in
     writing, the Indemnitor shall not have the right to assume the defense of
     such asserted liability on behalf of the Indemnitee).

          (d) Contribution. If the indemnification provided for in this Section
     is held by a court of competent jurisdiction to be unavailable to an
     Indemnitee with respect to any Losses, then the Indemnitor, in lieu of
     indemnifying such Indemnitee hereunder, shall contribute to the amount paid
     or payable by such Indemnitee as a result of such Losses in such proportion
     as is appropriate to reflect the relative fault of the Indemnitor on the
     one hand and of the Indemnitee on the other in connection with the
     Violation that resulted in such Losses, as well as any other relevant
     equitable considerations; provided, however, that in no event shall any
     contribution under this Section 5.07(d) from a Registrable Security Holder,
     together with the amount of any indemnification payments made by such
     Holder pursuant to Section 5.07(b) above, exceed the net proceeds from the
     offering received by such Registrable Security Holder. The relative fault
     of the Indemnitor and of the Indemnitee shall be determined by reference
     to, among other things, whether the Violation relates to information
     supplied by the Indemnitor or the Indemnitee and the parties relative
     intent, knowledge, access to information, and opportunity to correct or
     prevent such Violation.

          (e) No Inconsistent Underwriting Agreements. Notwithstanding any
     provision of this Agreement to the contrary, the Registrable Security
     Holders shall not be required to enter into an underwriting agreement that
     contains indemnification and contribution provisions which, in the sole
     discretion of the Registrable Security Holders, materially differ from
     those contained in this Section 5.07.

     Section 5.08. Rule 144 Reporting. With a view to making available to the
Registrable Security Holders the benefits of Rule 144 and any other rule or
regulation of the SEC that may at any time permit a Registrable Security Holder
to sell securities of the Company to the public without registration or pursuant
to a registration on Form F-3 or S-3, the Company agrees, at any time after it
has become subject to the reporting requirements of the Securities Act and the
Exchange Act, to:

          (a) make and keep public information available as those terms are
     understood and defined in Rule 144 at all times after ninety (90) calendar
     days after the effective date of the first registration statement filed by
     the Company;

          (b) file with the SEC in a timely manner all reports and other
     documents required of the Company under the Securities Act and the Exchange
     Act;

          (c) furnish to any Registrable Security Holder, so long as the
     Registrable Security Holder owns any Registrable Securities, upon request,
     (i) a written statement by the Company that it has complied with the
     reporting requirements of Rule 144 (at any time after ninety (90) calendar
     days after the effective date of the first registration statement filed by
     the Company), the Securities Act and the Exchange Act (at any time after it
     has become subject to such reporting requirements), or that it qualifies as
     a registrant whose securities may be resold pursuant to Form F-3 or S-3 (at
     any time after it so qualifies), (ii) a

                                       30

<PAGE>

     copy of the most recent annual or quarterly report of the Company and such
     other reports and documents so filed by the Company and (iii) such other
     information as may be reasonably requested in availing any Registrable
     Security Holder of any rule or regulation of the SEC which permits the
     selling of any such securities without registration or pursuant to such
     form; and

          (d) to take such action, including the voluntary registration of its
     Common Shares under Section 12 of the Exchange Act, as is necessary to
     enable the Registrable Security Holders to utilize Form F-3 or S-3 for the
     sale of their Registrable Securities, such action to be taken as soon as
     practicable after the end of the fiscal year in which the first
     registration statement filed by the Company for the offering of its
     securities to the public is declared effective.

     Section 5.09. Transfer of Registration Rights. The rights to cause the
Company to register Registrable Securities pursuant to this Article V may be
assigned by a Registrable Security Holder to a transferee or assignee of such
Registrable Security Holder's Registrable Securities, provided, that (x) the
Company is furnished a written notice of the name and address of such transferee
or assignee and the Registrable Securities with respect to which such
registration rights are being assigned, and (y) such transferee or assignee
agrees in writing to be bound by and subject to the terms and conditions of this
Agreement.

     Section 5.10. Subsequent Registration Rights. From and after the date of
this Agreement, the Company shall not, without the prior written consent of
Registrable Security Holders holding a majority of the outstanding Registrable
Securities, enter into any agreement with any holder or prospective holder of
any securities of the Company which provides such holder or prospective holder
of securities of the Company the right (a) to include such securities in any
registration filed under Sections 5.01, 5.02 or 5.03 hereof, unless under the
terms of such agreement, such holder or prospective holder may include such
securities in any such registration only to the extent that the inclusion of
such securities shall not reduce the amount of the Registrable Securities of the
Registrable Security Holders that are included or (b) to demand registration of
their securities.

     Section 5.11. Registration in Non-U.S. Jurisdictions. In the event that the
Company effects an IPO or QIPO which does not result in the listing of its
Common Shares on a nationally recognized securities exchange in the United
States or quotation in the National Association of Securities Dealers Inc.
automated quotation system, but rather a listing on any Designated Offshore
Securities Market or other internationally recognized securities exchange, then
it shall use its reasonable best efforts, to the extent permitted by applicable
law, to provide the Registrable Security Holders with substantially the same
rights and benefits in such jurisdiction as are provided for in this Agreement,
and to take such steps, if any, consistent with customary market practice at the
time so that the Registrable Securities are freely transferable in such listed
market without transfer restrictions imposed by the securities or similar laws
of such jurisdiction.

                                   ARTICLE VI

                                  Miscellaneous

                                       31

<PAGE>

     Section 6.01. Notices. All notices, requests, demands and other
communications to any party or given under this Agreement shall be in writing
and delivered personally, by overnight delivery or courier, by registered mail
or by telecopier (with confirmation received) to the parties at the address or
telecopy number specified for such parties below (or at such other address or
telecopy number as may be specified by a party in writing given at least five
business days prior thereto). All notices, requests, demands and other
communications shall be deemed delivered when actually received:

          (a)  If to the Company, at:

               Xinhua Finance Media Limited
               Suite 2003-5
               Vicwood Plaza
               199 Des Voeux Road
               Central, Hong Kong
               Attention: John McLean
               Telephone: +852 3196 3939
               Facsimile: +852 2541 8266

               With a copy to:
               Preston Gates & Ellis LLP
               35th Floor
               Two International Finance Center
               8 Finance Street
               Central, Hong Kong
               Attention: Clifford Ng
               Telephone: +852 2511 5100
               Facsimile: +852 2511 9515

          (b)  If to the Investors, at:

               Patriarch Partners Media Holdings, LLC
               c/o Patriarch Partners, LLC
               40 Wall Street, 25th Floor
               New York, NY 10005
               Attention: Lynn Tilton; Craig Newman
               Facsimile No.: (212) 825-2038

               with a copy to:

               Richards Spears Kibbe & Orbe LLP
               One World Financial Center
               New York, New York 10281
               Attention: Jonathan Kibbe, Esq.
               Telephone: (212) 530 1800
               Facsimile: (212) 530 1801

          (c)  If to the Parent, at:

                                       32

<PAGE>

               Xinhua Finance Limited
               Suite 2003-5
               Vicwood Plaza
               199 Des Voeux Road
               Central, Hong Kong
               Attention: John McLean
               Telephone: +852 3196 3939
               Facsimile: +852 2541 8266

               With a copy to:
               Preston Gates & Ellis LLP
               35th Floor
               Two International Finance Center
               8 Finance Street
               Central, Hong Kong
               Attention: Clifford Ng
               Telephone: +852 2511 5100
               Facsimile: +852 2511 9515

     Section 6.02. Counterparts. This Agreement may be executed simultaneously
in one or more counterparts, and by different parties hereto in separate
counterparts, each of which when executed shall be deemed an original, but all
of which taken together shall constitute one and the same instrument.

     Section 6.03. Modification or Amendment of Agreement. This Agreement may
not be modified or amended except by an instrument in writing signed by the
Company and Preferred Holders holding at least a majority of the Preferred
Shares; provided, however, that any modification or amendment of this Agreement
which materially and adversely affects an Investor in a manner which is
materially worse than the affect on any other Investor shall not be effective
without the consent of such Investor and; provided, further, however, that a
Holder may waive any or all of such Holder's rights hereunder without obtaining
the consent of the Company or any other Holder.

     Section 6.04. Successors and Assigns. This Agreement shall be binding upon
and inures to the benefit of and is enforceable by the respective successors and
permitted assigns of the parties hereto.

     Section 6.05. Governing Law. This Agreement, and all claims, disputes and
matters arising hereunder or thereunder or related hereto or thereto, shall be
governed by, and construed in accordance with, the laws of the state of New York
applicable to contracts executed in and to be performed entirely within that
state, without reference to conflicts of laws provisions.

     Section 6.06. Waiver of Jury. THE PARTIES HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT THAT THEY MAY HAVE TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION, OR IN
ANY LEGAL PROCEEDING, DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR THE

                                       33

<PAGE>

TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT, OR
ANY OTHER THEORY). EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT, OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTIES WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION.

     Section 6.07. Integration. This Agreement, the Share Purchase Agreement and
other Equity Documents contains and constitutes the entire agreement of the
parties with respect to the subject matter hereof and supersedes all prior
negotiations, agreements and understandings, whether written or oral, of the
parties hereto.

     Section 6.08. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law,
or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to any party. Upon such determination that any term or other provision
is invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner to the end
that the transactions contemplated hereby are fulfilled to the extent possible.

     Section 6.09. Interpretation. As used in this Agreement, references to the
singular shall include the plural and vice versa and references to the masculine
gender shall include the feminine and neuter genders and vice versa, as
appropriate. Unless otherwise expressly provided in this Agreement (a) the words
"hereof", "herein" and "hereunder" and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement and (b) article, section, subsection, schedule and
exhibit references are references with respect to this Agreement unless
otherwise specified. Unless the context otherwise requires, the term "including"
shall mean "including, without limitation." The headings in this Agreement are
included for convenience of reference only and shall not affect in any way the
meaning or interpretation of this Agreement.

     Section 6.10. Ambiguities. This Agreement was negotiated between legal
counsel for the parties and any ambiguity in this Agreement shall not be
construed against the party who drafted this Agreement.

     Section 6.11. Further Assurances. In order to (a) carry out more
effectively the purposes of this Agreement, (b) enable the parties to exercise
and enforce their rights and remedies hereunder, promptly upon the reasonable
request by any party hereto, the Company and the Holders shall (with the
expenses paid by the party responsible as provided in this Agreement) shall (i)
correct any defect or error that may be discovered in this Agreement or in the
execution, delivery, acknowledgment or recordation of this Agreement and (ii)
execute, acknowledge, deliver, record, file and register, any and all such
further acts, conveyances, assignments, notices of assignment, transfers,
certificates, assurances and other instruments, in each case, as such requesting
party may require from time to time.

                                       34

<PAGE>

     Section 6.12. No Third-Party Rights. This Agreement is not intended, and
shall not be construed, to create any rights in any parties other than the
Company and the Holders, and no Person may assert any rights as third-party
beneficiary hereunder, except as provided in Section 5.07.

     Section 6.13. No Waiver; Remedies. No failure or delay by any party in
exercising any right, power or privilege under this Agreement shall operate as a
waiver of the right, power or privilege. A single or partial exercise of any
right, power or privilege shall not preclude any other or further exercise of
the right, power or privilege or the exercise of any other right, power or
privilege.

     Section 6.14. Submission to Jurisdiction. Each of the Company and the
Holders hereby (a) agrees that any Action with respect to any Equity Document
may be brought only in the New York State courts sitting in New York County or
the federal courts of the United States of America for the Southern District of
New York and sitting in New York County, (b) accepts for itself and in respect
of its property, generally and unconditionally, the exclusive jurisdiction of
such courts, (c) irrevocably waives any objection, including, without
limitation, any objection to the laying of venue or based on the grounds of
forum non conveniens, which it may now or hereafter have to the bringing of any
Action in those jurisdictions, and (d) irrevocably consents to the service of
process of any of the courts referred to above in any Action by the mailing of
copies of the process to the parties hereto as provided in Section 6.01. Service
effected as provided in this manner shall become effective ten (10) calendar
days after the mailing of the process.

[Remainder of page intentionally left blank; signatures on following pages.]

                                       35

<PAGE>

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

COMPANY:                                XINHUA FINANCE MEDIA LIMITED

                                        By: /s/
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       S-1

<PAGE>

INVESTOR:                               PATRIARCH PARTNERS MEDIA HOLDINGS LLC

                                        By: /s/
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       S-2

<PAGE>

PARENT:                                 XINHUA FINANCE LIMITED

                                        By: /s/
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       S-3

<PAGE>

                                   SCHEDULE A

                                    INVESTORS

Patriarch Partners Media Holdings, LLC

                                   Schedule A
<PAGE>

                                     ANNEX A

                                EXEMPT ISSUANCES

All defined terms used herein and not defined shall have the meanings set forth
in Annex A to the Credit Agreement.

<TABLE>
<CAPTION>
                                                                                           MAXIMUM NUMBER OF
                                                                                               XFM SHARES
SHAREHOLDER                                     SPECIFIED CONTRIBUTED ASSETS                  TO BE ISSUED
-----------                                     ----------------------------               -----------------
<S>                                  <C>                                                   <C>
1. Best Gain Group Ltd               40% of the fully-diluted equity of EconWorld Media           955,556
2. Cheers Perfect Ltd.               Limited so long as EconWorld Media Limited holds
3. Cheung Wah Keung                  the Financial Magazine Assets.
4. EconWorld Holdings Ltd.
5. Gainful Concept Ltd.
6. Justly Investment
   International Ltd.
7. Lo Li Chun
8. Lo Shui Ling Raymond
9. Quach Fung Vi

Sanlian Group and its Affiliates     42% of the fully-diluted equity of Beijing Jingguan        4,781,893
                                     Xingcheng Advertising Co., Ltd. (Economic Observer)
                                     so long as Beijing Jingguan Xingcheng Advertising
                                     Co., Ltd.(Economic Observer) holds the Financial
                                     Newspaper Assets.

Economic Observer Shareholders       8% of the fully-diluted equity of Beijing Jingguan           979,424
                                     Xingcheng Advertising Co., Ltd. (Economic Observer)
                                     so long as Beijing Jingguan Xingcheng Advertising
                                     Co., Ltd. (Economic Observer) holds the Financial
                                     Newspaper Assets.

Hyperlink Shareholder                49% of the fully-diluted equity of Shanghai                1,613,169
                                     Hyperlink Market Research Co., Ltd. (Hyperlink) so
                                     long as Shanghai Hyperlink Market Research Co.,
                                     Ltd. (Hyperlink) holds the Media Market Research
                                     Assets.

Yu Gang                              16% of the fully-diluted equity of Accord Group              125,053
                                     Investments Limited so long as Accord Group
                                     Investments holds the Radio Assets.

Sino Investments Holdings Limited    37% of the fully-diluted equity of Upper Step              6,478,437
                                     Holdings Limited so long as Upper Step Holdings
                                     Limited holds the Television Assets.

Sino Investments Holdings Limited    49% of the fully-diluted equity of Accord Group              451,107
                                     Investments Limited so long as Accord Group
                                     Investments holds the Radio Assets.

Sungolden Limited                    44% of the fully-diluted equity of Upper Step              6,407,018
                                     Holdings Limited so long as Upper Step Holdings
</TABLE>

                                     Annex A

<PAGE>

<TABLE>
<S>                                  <C>                                                   <C>
                                     Limited holds the Television Assets.

Sungolden Limited                    16% of the fully-diluted equity of Accord Group              125,053
                                     Investments Limited so long as Accord Group
                                     Investments holds the Radio Assets.

Xinhua Finance Limited               50% of the fully-diluted equity of Beijing Jingguan        5,761,317
                                     Xingcheng Advertising Co., Ltd. (Economic Observer)
                                     so long as Beijing Jingguan Xingcheng Advertising
                                     Co., Ltd.(Economic Observer) holds the Financial
                                     Newspaper Assets.

Xinhua Finance Limited               51% of the fully-diluted equity of Shanghai                1,679,012
                                     Hyperlink Market Research Co., Ltd. (Hyperlink) so
                                     long as Shanghai Hyperlink Market Research Co.,
                                     Ltd. (Hyperlink) holds the Media Market Research
                                     Assets.

Exempt Plan if both Newspaper        N/A                                                       22,777,602
Assets are not acquired

Exempt Plan if both Newspaper        N/A                                                       22,340,962
Assets are acquired
</TABLE>

Fully-diluted capitalization of Xinhua Finance Media Limited assuming completion
of all Exempt Issuances above if both Newspaper Assets are not acquired:

<TABLE>
<CAPTION>
SHAREHOLDER                              OWNERSHIP PERCENTAGE    XFM SHARES
-----------                              --------------------   -----------
<S>                                      <C>                    <C>
Xinhua Finance Limited                           44.0%           50,054,619
Patriarch Partners Media Holdings, LLC           16.8%           19,139,080
EconWorld Shareholders                            0.8%              955,556
Sino Investments Holdings Limited                 6.1%            6,929,544
Sungolden Limited                                 5.7%            6,532,070
Yu Gang                                           0.1%              125,053
Sanlian Group and its Affiliates                  4.2%            4,781,893
Economic Observer Shareholders                    0.9%              979,424
Hyperlink Shareholders                            1.4%            1,613,169
Exempt Plan                                      20.0%           22,777,602
                                                -----           -----------
   Total                                        100.0%          113,888,009
                                                =====           ===========
</TABLE>

Fully-diluted capitalization of Xinhua Finance Media Limited assuming completion
of all Exempt Issuances above if both Newspaper Assets are acquired:

<TABLE>
<CAPTION>
SHAREHOLDER                              OWNERSHIP PERCENTAGE    XFM SHARES
-----------                              --------------------   -----------
<S>                                      <C>                    <C>
Xinhua Finance Limited                           44.8%           50,054,619
Patriarch Partners Media Holdings, LLC           15.6%           17,392,522
</TABLE>

                                       S-2

<PAGE>

<TABLE>
<S>                                      <C>                    <C>
EconWorld Shareholders                            0.9%              955,556
Sino Investments Holdings Limited                 6.2%            6,929,544
Sungolden Limited                                 5.8%            6,532,070
Yu Gang                                           0.1%              125,053
Sanlian Group and its Affiliates                  4.3%            4,781,893
Economic Observer Shareholders                    0.9%              979,424
Hyperlink Shareholders                            1.4%            1,613,169
Exempt Plan                                      20.0%           22,340,962
                                                -----           -----------
   Total                                        100.0%          111,704,811
                                                =====           ===========
</TABLE>

                                       S-3<PAGE>

                                                                    EXHIBIT 10.1

                              XINHUA FINANCE MEDIA

                        SHARE OPTION AND SHARE GRANT PLAN

<PAGE>
                                                                               .
                                                                               .
                                                                               .

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
1.  DEFINITIONS............................................................    1
2.  EFFECTIVE DATE AND TERMINATION OF THE PLAN.............................    4
3.  ADMINISTRATION.........................................................    5
4.  ELIGIBILITY AND GRANT OF AWARDS: COMPENSATION COMMITTEE AUTHORITY......    6
5.  NUMBER OF COMMON SHARES SUBJECT TO AWARDS..............................    6
6.  OPTION PRICE...........................................................    8
7.  PERIOD OF OPTION AND VESTING...........................................    8
8.  EXERCISE OF OPTIONS....................................................    9
9.  PAYMENT................................................................    9
10. EXERCISABILITY AFTER TERMINATION OF PARTICIPANT'S EMPLOYMENT...........   10
11. RESTRICTED SHARES AND RESTRICTED SHARE UNITS...........................   11
12. DESIGNATED PARTICIPANTS................................................   12
13. TAX WITHHOLDING........................................................   13
14. EXERCISE BY SUCCESSORS AND PAYMENT IN FULL.............................   13
15. NON-TRANSFERABILITY OF AWARD...........................................   14
16. REGULATION AND APPROVALS...............................................   14
17. INTERPRETATION AND CONSTRUCTION........................................   14
18. AMENDMENT, MODIFICATION AND TERMINATION OF THE PLAN....................   15
19. CHANGES IN CAPITAL STRUCTURE...........................................   15
20. SPECIAL PROVISIONS RELATING TO CALIFORNIA RESIDENTS....................   16
21. NOTICES................................................................   19
22. RIGHTS AS SHAREHOLDER..................................................   19
23. EXCULPATION AND INDEMNIFICATION........................................   20
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                           <C>
24. CAPTIONS...............................................................   20
25. GOVERNING LAW..........................................................   20
26. SECTION 409A COMPLIANCE................................................   20
27. MISCELLANEOUS..........................................................   20
</TABLE>

                                       ii
<PAGE>

                              XINHUA FINANCE MEDIA

                        SHARE OPTION AND SHARE GRANT PLAN

     The purpose of the Share Option and Share Grant Plan (the "Plan") is to
promote the success and enhance the value of Xinhua Finance Media (the
"Company") by linking the personal interests of the members of the Board,
Employees and consultants to those of Company shareholders and by providing such
individuals with an incentive for outstanding performance to generate superior
returns to Company shareholders. The Plan is further intended to enable the
Company to attract key employees to the Company and induce key employees to
remain with the Company, and encourage them to increase their efforts to make
the Company's business more successful. In furtherance thereof, the Plan is
designed to provide equity-based incentives to Employees of the Company and to
certain outside consultants and advisors to the Company.

     The Plan provides for the grant of options ("Options") to acquire Class A
Common shares in the capital of the Company ("Common Shares"), and awards of
Common Shares subject to certain restrictions ("Restricted Shares"). Grants of
Options and awards of Restricted Shares and Restricted Share Units are referred
to herein as "Awards".

1.   DEFINITIONS

     Whenever used herein, the following terms shall have the meanings set forth
     below:

     "Affiliate" means any parent or subsidiary corporation of the Company,
     whether now or hereafter existing, as those terms are defined in Sections
     424(e) and (f), respectively, of the Code.

     "Applicable Laws" means the legal requirements relating to the Plan and the
     Awards under applicable provisions of the corporate and securities laws of
     the Cayman Islands, the Code, the People's Republic of China tax laws,
     rules, regulations and government orders, the rules of any applicable share
     exchange or national market system, and the laws and the rules of any
     jurisdiction applicable to Awards granted to residents therein.

     "Award" means an Option or a Restricted Share or Restricted Share Unit
     award granted to a Participant pursuant to the Plan.

     "Award Agreement" means a written agreement in a form approved by the
     Compensation Committee to be entered into by the Company and the
     Participant being granted an Award, as provided in Section 4. All Awards
     shall be evidenced by an Award Agreement.

     "Board" means the Board of Directors of the Company.

     "Cause" means, unless otherwise provided in the Participant's Award
     Agreement, (i) engaging in (A) willful or gross misconduct or (B) willful
     or gross neglect, (ii) repeatedly failing to adhere to the directions of
     superiors or the Board or the written policies and practices of the Company
     or its Subsidiaries or its affiliates, (iii) the commission of a

                                       1

<PAGE>

     felony or a crime of moral turpitude, or any crime involving the Company or
     its Subsidiaries, or any affiliate thereof, (iv) fraud, insubordination,
     misappropriation or embezzlement, (v) a breach of the Participant's
     employment agreement (if any) with the Company or its Subsidiaries or its
     affiliates, or (vi) any illegal act detrimental to the Company or its
     Subsidiaries or its affiliates.

     "Change in Control" means the occurrence of any of the following: (i) the
     sale, lease, transfer, conveyance or other disposition, in one or a series
     of related transactions, of all or substantially all of the assets of the
     Company to any person or group; or (ii) a transaction or series of
     transactions pursuant to which any person or group (other than the Company
     or an affiliate thereof) is or becomes the beneficial owner, directly or
     indirectly, of more than 30% of the voting shares of the Company, including
     by way of merger, consolidation or otherwise.

     "Code" means the United States Internal Revenue Code of 1986, as amended.

     "Company" means Xinhua Finance Media, a company incorporated under the laws
     of the Cayman Islands.

     "Compensation Committee" or "Committee" means the Compensation Committee of
     the Board as described in Section 3.

     "Disability" means, unless otherwise provided by the Committee in the
     Participant's Award Agreement, a disability which renders the Participant
     incapable of performing all of his or her material duties for a period of
     at least 180 consecutive or non-consecutive days during any consecutive
     twelve-month period.

     "Effective Date" shall have the meaning set forth in Section 2.

     "Employee" means any person, including an officer or member of the Board of
     the Company, any Parent or Subsidiary of the Company, who is in the employ
     of a Service Recipient, subject to the control and direction of the Service
     Recipient as to both the work to be performed and the manner and method of
     performance. The payment of a director's fee by a Service Recipient shall
     not be sufficient to constitute "employment" by the Service Recipient.

     "Exchange Act" means the Securities Exchange Act of 1934 of the United
     States, as amended.

     "Fair Market Value" per Common Share as of a particular date means (i) if
     Common Shares are then listed on a share exchange or national market
     system, including but without limitation, The Nasdaq National Market or The
     Nasdaq SmallCap Market of The Nasdaq Share Market, the closing sales price
     (or the closing bid, if no sales were reported) per Common Share on the
     principal exchange or system on the date of determination (or, if no
     closing sales price or closing bid was reported on that date, as
     applicable, for the last preceding date on which there was a sale of Common
     Shares (or closing bid) on such

                                       2

<PAGE>

     exchange or system), as determined by the Committee; (ii) if Common Shares
     are not then listed on a national share exchange but are regularly quoted
     on an automated quotation system (including the OTC Bulletin Board) or by a
     recognized securities dealer, the closing sales price for such shares as
     quoted on such system or by such securities dealer on the date of
     determination, but if selling prices are not reported, the asked prices for
     the Common Shares in such over-the-counter market for the last preceding
     date on which there was a sale of such Common Shares in such market, as
     determined by the Committee; or (iii) if Common Shares are not then listed
     or traded on an established market described in (i) or (ii) above, such
     value as the Committee in its discretion may in good faith determine after
     consulting with legal and accounting advisors.

     "Incentive Share Option" means an Option intended to qualify as an
     incentive stock option within the meaning of Section 422 of the Code and
     the regulations promulgated thereunder.

     "Independent Director" means a member of the Board who is not an Employee
     of the Company or Subsidiary.

     "Initial Public Offering" means the initial offering of the Company's
     Common Shares to the public on a reputable share exchange or national
     market system as approved by the Board.

     "Non-Employee Director" means a member of the Board who qualifies as a
     "Non-Employee Director" as defined in Rule 16b-3(b)(3) of the Exchange Act,
     or any successor definition adopted by the Board.

     "Option" means the right to purchase, at a price and for the term fixed by
     the Committee in accordance with the Plan, and subject to such other
     limitations and restrictions in the Plan and the applicable Award
     Agreement, a number of Common Shares determined by the Committee.

     "Option Price" means the exercise price per Common Share.

     "Parent" means a parent corporation under Section 424(e) of the Code.

     "Participant" means (i) in the case of Incentive Share Options, an Employee
     to whom such Option is granted, or the Successors of a Participant, as the
     context so requires, and (ii) in the case of all other Awards granted
     hereunder, means an Employee or a director of the Company (whether or not
     such director is also an Employee), a consultant or advisor to the Company
     (excluding a consultant or advisor who directly or indirectly promotes or
     maintains a market for the securities of the Company or any Subsidiary) who
     is not an Employee, and such other persons as the Committee shall select
     from time to time, in each case to whom an Award is granted, or the
     Successors of a Participant, as the context so requires. Solely for
     purposes of clause (i) of this definition, "Subsidiary" shall mean a
     subsidiary corporation whether now or hereafter existing, as defined in
     Section 424(f) of the Code.

                                       3

<PAGE>

     "Plan" means the Company's Share Option and Share Grant Plan, as set forth
     herein and as the same may from time to time be amended by the Compensation
     Committee of the Board.

     "Related Entity" means any business, corporation, partnership, limited
     liability company or other entity which is not a Subsidiary, but is
     consolidated in the Company's consolidated financial statements prepared
     under the United States generally accepted accounting principles.

     "Restricted Shares" has the meaning given in the second paragraph of the
     Preamble.

     "Restricted Share Unit" means the right granted to a Participant pursuant
     to Article 11 that is subject to certain restrictions and may be subject to
     risk of forfeiture.

     "Retirement" means, unless otherwise provided by the Committee in the
     Participant's Award Agreement, the termination (other than for Cause) of
     employment (or other termination of service, in the case of key consultants
     or directors) of a Participant on or after the Participant's attainment of
     age 65 or on or after the Participant's attainment of age 55 with five
     consecutive years of service with the Company and/or its Subsidiaries.

     "Service Recipient" means the Company, any Parent or Subsidiary of the
     Company and any Related Entity to which a Participant provides services as
     an Employee, consultant or as a director.

     "Share" means a Common Share of the Company, par value $0.001 per share,
     either currently existing or authorized hereafter.

     "Subsidiary" means any corporation of which more than 50% of the
     outstanding share capital having voting power to elect a majority of the
     board of directors of such corporation is at the time directly or
     indirectly owned by the Company.

     "Successor" of a Participant means the legal representative of the estate
     of a deceased Participant or the person or persons who shall acquire the
     right to exercise an Option by bequest or inheritance or by reason of the
     death of the Participant.

     "Ten Percent Shareholder" means a person who owns (or is deemed to own
     pursuant to Section 424(d) of the Code) shares comprising more than ten
     percent (10%) of the total combined voting power of all classes of shares
     of the Company or of any of its Affiliates.

2.   EFFECTIVE DATE AND TERMINATION OF THE PLAN

     The Plan is effective as of the date the Plan is approved by the Company's
     shareholders (the "Effective Date"). The Plan will be deemed to be approved
     by the shareholders if it receives the affirmative vote of the holders of a
     majority of the share capital of the Company present or represented and
     entitled to vote either (i) at a meeting duly held in

                                       4

<PAGE>

     accordance with the applicable provisions of the Company's Memorandum of
     Association and Articles of Association or (ii) by written consent.
     Notwithstanding the foregoing, the Effective Date shall not be later than
     the first anniversary of the date on which the Board adopts the Plan (the
     "Board Adoption Date"). Between the Board Adoption Date and the Effective
     Date, the Committee may grant Options to any persons pursuant to the terms
     of the Plan, provided that none of such persons shall be allowed to
     exercise the Options prior to the Effective Date.

     The Plan shall terminate, and no Award shall be granted hereunder, on or
     after the 10-year anniversary of the Effective Date; provided, that the
     Board may at any time at its sole discretion terminate the Plan prior to
     that date. Any Awards that are outstanding on the tenth anniversary of the
     Effective Date shall remain in force according to the terms of the Plan and
     applicable Award Agreement.

3.   ADMINISTRATION

     The Plan shall be administered by the Compensation Committee appointed by
     the Board; provided, however that the Compensation Committee may delegate
     to a committee the authority to grant or amend Awards to Participants other
     than Independent Directors and executive officers of the Company (such
     committee being the "Committee"). The Committee shall consist of at least
     two individuals who are officers and/or directors of the Company. Reference
     to the Committee shall refer to the Board if the Compensation Committee
     ceases to exist and the Board does not appoint a successor Committee.
     Notwithstanding the foregoing, the full Board, acting by majority of its
     members in office shall conduct the general administration of the Plan if
     required by Applicable Law, and with respect to Awards granted to
     Independent Directors and executive officers of the Company and for
     purposes of such Awards the term "Committee" as used in the Plan shall be
     deemed to refer to the Board.

     Notwithstanding the foregoing, following the Initial Public Offering, the
     Committee shall consist solely of two or more members of the Board each of
     whom is a Non-Employee Director and an "independent director" under the
     rules of the principal securities market on which Shares are traded.
     Notwithstanding the foregoing, the full Board, acting by a majority of its
     members in office, shall conduct the general administration of the Plan
     with respect to all Awards granted to Independent Directors and for
     purposes of such Awards the term "Committee" as used in this Plan shall be
     deemed to refer to the Board.

     A majority of the Committee shall constitute a quorum. The acts of a
     majority of the members present at any meeting at which a quorum is
     present, and acts approved in writing by a majority of the Committee in
     lieu of a meeting, shall be deemed the acts of the Committee. Each member
     of the Committee is entitled to, in good faith, rely or act upon any report
     or other information furnished to that member by any officer or other
     employee of the Company or any Subsidiary, the Company's independent
     certified public accountants, or any executive compensation consultant or
     other professional retained by the Company to assist in the administration
     of the Plan. No member of the Committee may act as to matters under the
     Plan specifically relating to such member.

                                       5

<PAGE>

     The Company will bear the expenses in relation to the administration and
     execution of the Plan.

4.   ELIGIBILITY AND GRANT OF AWARDS: COMPENSATION COMMITTEE AUTHORITY

     Subject to the provisions of the Plan, the Compensation Committee may, in
     its discretion as reflected by the terms of the Award Agreements: (i)
     authorize the granting of Awards to eligible Participants; (ii) determine
     and designate from time to time those eligible Participants to whom Awards
     are to be granted and the number of Common Shares to be optioned or
     granted, as the case may be, to each Participant; (iii) determine the
     number of Common Shares subject to each Award; (iv) determine the time or
     times when and the manner and condition in which each Option shall be
     exercisable and the duration of the exercise period; (v) determine or
     impose other conditions to the grant or exercise of Awards under the Plan
     as it may deem appropriate. In determining eligibility to receive an Award,
     as well as in determining the number of Common Shares to be subject to an
     Award, the Committee may consider the position and responsibilities of the
     Participant, the nature and value to the Company of the Participant's
     services and accomplishments whether directly or through its Subsidiaries,
     the Participant's present and potential contribution to the success of the
     Company whether directly or through its Subsidiaries and such other factors
     as the Committee may deem relevant. The Award Agreement shall contain such
     other terms, provisions and conditions not inconsistent herewith as shall
     be determined by the Committee. The Participant shall take whatever
     additional actions and execute whatever additional documents the Committee
     may in its reasonable judgment deem necessary or advisable in order to
     carry out or effect one or more of the obligations or restrictions imposed
     on the Participant pursuant to the express provisions of the Plan and the
     Award Agreement.

     Nothing in the Plan or in any Award granted pursuant to the Plan shall
     confer on any individual any right to continue in the employ or service of
     any Service Recipient or interfere with or limit in any way the right of
     the Service Recipient to terminate the individual's employment or services
     at any time.

     Without limitation to the foregoing, the Award Agreement may contain terms
     and conditions which limit the Participant's ability to exercise all or any
     portion of the Options granted thereunder under circumstances in which the
     Participant's performance of his or her duties falls below specified
     performance criteria set forth in such Award Agreement.

5.   NUMBER OF COMMON SHARES SUBJECT TO AWARDS

     (a)  Subject to adjustments pursuant to Section 19 and this Section 5(a),
          the maximum aggregate number of Common Shares which may be issued
          pursuant to all Awards (including Incentive Share Options) is equal to
          the lesser of (y) 19,530,205 Common Shares, or (z) a lesser number of
          Common Shares determined by the Committee. To the extent that an Award
          terminates, expires, or lapses for any reason, any Common Shares
          subject to the

                                       6

<PAGE>

          Award shall again be available for the grant of an Award pursuant to
          the Plan. To the extent permitted by Applicable Law, Shares issued in
          assumption of, or in substitution for, any outstanding awards of any
          entity acquired in any form or combination by the Company or any
          Parent or Subsidiary of the Company shall not be counted against
          Shares available for grant pursuant to the Plan. Common Shares issued
          hereunder may consist, in whole or in part, of authorized and unissued
          shares, treasury shares (to the extent permitted by Applicable Law) or
          shares purchased on the open market. The certificates for Common
          Shares issued hereunder may include any legend which the Committee
          deems appropriate to reflect any restrictions on transfer hereunder or
          under the Award Agreement, or as the Committee may otherwise deem
          appropriate.

     (b)  Each Option intended to be an Incentive Share Option shall be
          designated as such in the Award Agreement. However, notwithstanding
          such designations, to the extent that the aggregate Fair Market Value
          of the Common Shares with respect to which Options designated as
          Incentive Share Options are exercisable for the first time by any
          Participant during any calendar year (under all equity incentive plans
          of the Company) exceeds $100,000, such excess Options shall be treated
          as an Option not intended to qualify as an Incentive Share Option.
          Options shall be taken into account in the order in which they were
          granted.

     (c)  In the discretion of the Committee, American Depository Shares in an
          amount equal to the number of Common Shares which otherwise would be
          distributed pursuant to an Award may be distributed in lieu of Common
          Shares in settlement of any Award. If the number of Common Shares
          represented by an American Depository Share is other than on a
          one-to-one basis, the limitations of this Section 5 shall be adjusted
          to reflect the distribution of American Depository Shares in lieu of
          Shares. All allotments and issues of Shares will be subject to any
          necessary consents under Applicable Law and it shall be the
          responsibility of the Participant to comply with any requirements to
          be fulfilled in order to obtain or obviate the necessity for any such
          consent.

     (d)  In order to assure the viability of Awards granted to Participants
          employed in various jurisdictions, the Committee may provide for such
          special terms as it may consider necessary or appropriate to
          accommodate differences in local law, tax policy, or custom applicable
          in the jurisdiction in which the Participant resides or is employed.
          Moreover, the Committee may approve such supplements to, or
          amendments, restatements, or alternative versions of, the Plan as it
          may consider necessary or appropriate for such purposes without
          thereby affecting the terms of the Plan as in effect for any other
          purpose; provided, however, that no such supplements, amendments,
          restatements, or alternative versions shall increase the share
          limitations contained in Section 5 of the Plan. Notwithstanding the
          foregoing, the Committee may not take any actions hereunder, and no
          Awards shall be granted, that would violate any Applicable Laws.

                                       7

<PAGE>

6.   OPTION PRICE

     The Compensation Committee shall determine the Option Price on the date the
     Option is granted and reflected in the Award Agreement; provided, however,
     that the Option Price may not be below the par value of the Common Shares.
     Any particular Award Agreement may provide for different exercise prices
     for specified amounts of Common Shares subject to the Option. The Option
     Price may be denominated in U.S. Dollars, Chinese Renminbi or other local
     currency, as determined by the Committee.

     The Option Price with respect to each Incentive Share Option granted to a
     Ten Percent Shareholder shall be not less than 110% of the Fair Market
     Value of an Common Share on the date the Option is granted, and the Option
     Price with respect to each Incentive Share Option granted to all other
     Participants shall be not less than 100% of the Fair Market Value of an
     Common Share on the date the Option is granted. Notwithstanding the
     foregoing, an Incentive Share Option may be granted with an exercise price
     lower than that set forth in the preceding sentence if such Option is
     granted pursuant to an assumption or substitution for another option in a
     manner satisfying the provisions of Section 424(a) of the Code.

7.   PERIOD OF OPTION AND VESTING

     (a)  Unless earlier expired, forfeited or otherwise terminated, each Option
          shall expire in its entirety upon the tenth anniversary of the date of
          grant or shall have such other term as is set forth in the applicable
          Award Agreement. The Option shall also expire, be forfeited and
          terminated at such times and in such circumstances as otherwise
          provided hereunder or under the Award Agreement.

     (b)  Each Option, to the extent that there has been no termination of the
          Participant's employment and the Option has not otherwise lapsed,
          expired, terminated or been forfeited, shall first become exercisable
          according to the terms and conditions set forth in the Award
          Agreement, as determined by the Committee at the time of grant. Unless
          otherwise provided in the Award Agreement, no Option (or portion
          thereof) shall ever be exercisable if the Participant's employment
          with the Company and its Subsidiaries has terminated before the time
          at which such Option would otherwise have become exercisable, and any
          Option that would otherwise become exercisable after such termination
          shall not become exercisable and shall be forfeited upon such
          termination. Notwithstanding the foregoing provisions of this Section
          7(b), Options exercisable pursuant to the schedule set forth by the
          Committee at the time of grant may be fully or more rapidly
          exercisable or otherwise vested at any time in the discretion of the
          Committee. Upon and after the death of a Participant, such
          Participant's Options, if and to the extent otherwise exercisable
          hereunder or under the applicable Award Agreement after the
          Participant's death, may be exercised by the Successors of the
          Participant.

     (c)  The exercise period of Incentive Share Options issued to Ten Percent
          Shareholders Options shall not be greater than five years from the
          date of grant. The exercise

                                       8

<PAGE>

          period of Incentive Share Options issued to all other Participants
          shall not be greater than 10 years from the date of grant. The
          Committee shall determine the exercise period of all other Options.

8.   EXERCISE OF OPTIONS

     Any Option granted shall be exercisable at such times and under such
     conditions as determined by the Board and as permissible under the terms of
     the Plan. An Option shall be deemed to be exercised when written notice of
     such exercise has been given to the Company and the Company has received
     full payment for the Option Shares with respect to which the Option is
     exercised. The notice of exercise, once delivered, shall be irrevocable.

9.   PAYMENT

     (a)  The aggregate Option Price shall be paid in full upon the exercise of
          the Option. Payment must be made by one of the following methods:

          (i)  a certified or bank cashier's check denominated in U.S. Dollars,
               Chinese Renminbi or other local currency;

          (ii) to the extent permitted by Applicable Law, the proceeds of a
               Company loan program or third-party sale program or a notice
               acceptable to the Committee given as consideration under such a
               program, in each case if permitted by the Committee in its
               discretion, if such a program has been established and the
               Participant is eligible to participate therein;

          (iii) if permitted by the Committee in its discretion, previously
               owned Common Shares having an aggregate Fair Market Value on the
               date of exercise equal to the aggregate Option Price; or

          (iv) by any combination of such methods of payment or any other method
               acceptable to the Committee in its discretion.

     (b)  The Committee, in its discretion, may also permit the Participant to
          elect to exercise an Option by receiving a combination of Common
          Shares and cash (denominated in U.S. Dollars, Chinese Renminbi or
          other local currency), or, in the discretion of the Committee, solely
          cash, with an aggregate Fair Market Value (or, to the extent of
          payment in cash, in an amount) equal to the excess of the Fair Market
          Value of the Common Shares with respect to which the Option is being
          exercised over the aggregate Option Price, as determined as of the day
          of the Option is exercised.

     (c)  Except in the case of Options exercised by certified or bank cashier's
          check, the Committee may impose limitations and prohibitions on the
          exercise of Options as it deems appropriate, including, without
          limitation, any limitation or prohibition designed to avoid accounting
          consequences which may result from the use of

                                       9

<PAGE>

          Common Shares as payment upon exercise of an Option. Any fractional
          Common Shares resulting from a Participant's election that are
          accepted by the Company shall in the discretion of the Committee be
          either paid in cash or eliminated by rounding up or down as
          appropriate.

     (d)  Notwithstanding any other provision of the Plan to the contrary, no
          Participant who is a member of the Board or an "executive officer" of
          the Company within the meaning of Section 13(k) of the Exchange Act
          shall be permitted to pay the exercise price of an Option in any
          method which would violate Section 13(k) of the Exchange Act.

     (e)  A Participant may be required to provide evidence that any currency
          used to pay the exercise price of any Award were acquired and taken
          out of the jurisdiction in which the Participant resides in accordance
          with Applicable Laws, including foreign exchange control laws and
          regulations.

10.  EXERCISABILITY AFTER TERMINATION OF PARTICIPANT'S EMPLOYMENT

     Unless otherwise provided in the Award Agreement:

     (a)  If the Participant's employment is terminated by the Company and its
          Subsidiaries for Cause, the Participant's Options, to the extent then
          unexercised, shall thereupon cease to be exercisable and shall be
          forfeited forthwith.

     (b)  If the Participant's employment with the Company and its Subsidiaries
          terminates due to the death, Retirement or Disability of the
          Participant, but while the Option is still in effect, the Option (if
          and to the extent otherwise exercisable by the Participant at the time
          of death, Retirement or Disability) may be exercised until the
          expiration of the one-year period following such termination or, if
          earlier, the expiration of the term of the Option in accordance with
          Section 7.

     (c)  If the Participant's employment with the Company and its Subsidiaries
          is terminated by reason of voluntary termination, for reasons other
          than for Cause, death, Retirement or Disability, the Option (if and to
          the extent otherwise exercisable by the Participant at the time of
          termination) may be exercised until the expiration of the twelve-month
          period following the termination, or if earlier, the expiration of the
          term of the Option as provided under Section 7. If the Participant
          should die after termination of employment, such termination being for
          a reason other than voluntary termination, Cause, Disability or
          Retirement, but while the Option is still in effect, the Option (if
          and to the extent otherwise exercisable by the Participant at the time
          of death) may be exercised until the expiration of the one-year period
          following such termination or, if earlier, the expiration of the term
          of the Option in accordance with Section 7.

     (d)  Except as may otherwise be expressly set forth in this Section 10, and
          except as may otherwise be expressly provided under the Award
          Agreement, no provision of this

                                       10

<PAGE>

          Section 10 is intended to or shall permit the exercise of the Option
          to the extent the Option was not exercisable upon termination of
          employment.

11.  RESTRICTED SHARES AND RESTRICTED SHARE UNITS

     (a)  The Committee is authorized to make Awards of Restricted Shares to any
          Participant selected by the Committee in such amounts and subject to
          such terms and conditions as determined by the Committee. All Awards
          of Restricted Shares shall be evidenced by an Award Agreement.

     (b)  Restricted Shares shall be subject to such restrictions on
          transferability and other restrictions as the Committee may impose
          (including, without limitation, limitations on the right to vote
          Restricted Shares or the right to receive dividends on the Restricted
          Shares). These restrictions may lapse separately or in combination at
          such times, pursuant to such circumstances, in such installments, or
          otherwise, as the Committee determines at the time of the grant of the
          Award or thereafter.

     (c)  Except as otherwise determined by the Committee at the time of the
          grant of the Award or thereafter, upon termination of employment or
          service during the applicable restriction period, Restricted Shares
          that are at that time subject to restrictions shall be forfeited or
          repurchased in accordance with the Award Agreement; provided, however,
          the Committee may (a) provide in any Restricted Share Award Agreement
          that restrictions or forfeiture and repurchase conditions relating to
          Restricted Shares will be waived in whole or in part in the event of
          terminations resulting from specified causes, and (b) in other cases
          waive in whole or in part restrictions or forfeiture and repurchase
          conditions relating to Restricted Shares.

     (d)  Restricted Shares granted pursuant to the Plan may be evidenced in
          such manner as the Committee shall determine. If certificates
          representing Restricted Shares are registered in the name of the
          Participant, certificates must bear an appropriate legend referring to
          the terms, conditions, and restrictions applicable to such Restricted
          Shares, and the Company may, at its discretion, retain physical
          possession of the certificate until such time as all applicable
          restrictions lapse.

     (e)  At the time of grant, the Committee shall specify the date or dates on
          which the Restricted Share Units shall become fully vested and
          nonforfeitable, and may specify such conditions to vesting as it deems
          appropriate. At the time of grant, the Committee shall specify the
          maturity date applicable to each grant of Restricted Share Units which
          shall be no earlier than the vesting date or dates of the Award and
          may be determined at the election of the grantee. On the maturity
          date, the Company shall, subject to Sections 16 and 22 transfer to the
          Participant one unrestricted, fully transferable Common Share for each
          Restricted Share Unit scheduled to be paid out on such date and not
          previously forfeited.

                                       11

<PAGE>

12.  DESIGNATED PARTICIPANTS

     (a)  If the Committee determines in its sole discretion that an appointment
          is necessary or desirable to comply with the regulatory requirements
          in the People's Republic of China ("PRC"), it may appoint the Company,
          a Subsidiary or any other institution or organization registered
          outside of the PRC ("Trustee") to hold the interest and exercise the
          rights granted under the Plan of any Participant ("Designated
          Participant") who either is a national of and ordinarily resident in
          the PRC or is otherwise designated by the Committee as a Designated
          Participant. In relation to any such appointment, the Trustee will
          undertake to do the following for and on behalf of the Designated
          Participant, subject at all times to the Committee's supervision:

          (i)  execute the relevant Award Agreement with the Company;

          (ii) hold the Award ("Designated Award") for the benefit of the
               Designated Participant;

          (iii) take such actions as the Designated Participant may instruct
               from time to time in connection with the Designated Award or
               otherwise in relation to the Designated Participant's beneficial
               interest under the Plan or under the Award Agreement, including
               taking such actions as may be necessary to exercise the
               Designated Award under the terms of Section 8 of the Plan and
               making payment under the terms of Section 9 of the Plan; and

          (iv) after deducting its costs, fees and expenses as contemplated
               under subsection (d), hold or at the Designated Participant's
               direction remit to the Designated Participant the net proceeds of
               sales or other transactions involving the Designated Award or, as
               applicable, Common Shares underlying such Award.

     (b)  Without limiting the scope of its authorities under Section 4 or any
          other provision of the Plan, the Committee may at any time impose
          restrictions on the method of exercise of a Designated Award, such
          that upon exercise the Designated Participant (or the Trustee acting
          on the Designated Participant's behalf) does not receive Common Shares
          and receives solely cash, in the amount and denomination determined
          under Section 9(b).

     (c)  An appointment of a Trustee pursuant to the terms of this Section 11
          to hold the interest and exercise the rights for the benefit of the
          Designated Participant shall terminate at such time as the Committee
          determines in its sole discretion that such appointment is no longer
          necessary or desirable in order to comply with regulatory requirements
          in the PRC.

     (d)  The Trustee may deduct from the proceeds of sales or other
          transactions involving the Designated Award or, as applicable, Common
          Shares underlying such Award any costs, fees and expenses of the
          Trustee in relation to its appointment under this

                                       12

<PAGE>

          Section 11. The Trustee will, under no circumstances, otherwise
          require the Designated Participant to compensate it for any of its
          costs, fees, expenses or losses.

13.  TAX WITHHOLDING

     No Common Shares shall be delivered under the Plan to any Participant until
     such Participant has made arrangements acceptable to the Committee for the
     satisfaction of any income and employment tax withholding obligations under
     Applicable Laws, including without limitation the PRC tax laws, rules,
     regulations and government orders or the U.S. Federal, state or local tax
     laws, as applicable. The Company or any Subsidiary shall have the authority
     and the right to deduct or withhold, or require a Participant to remit to
     the Company, an amount sufficient to satisfy federal, state, local and
     foreign taxes (including the Participant's payroll, social security,
     national insurance or other tax obligations) required by law to be withheld
     with respect to any taxable event concerning a Participant arising as a
     result of this Plan. The Committee may in its discretion and in
     satisfaction of the foregoing requirement allow a Participant to elect to
     have the Company withhold Common Shares otherwise issuable under an Award
     (or allow the return of Common Shares) having a Fair Market Value equal to
     the sums required to be withheld. Notwithstanding any other provision of
     the Plan, the number of Common Shares which may be withheld with respect to
     the issuance, vesting, exercise or payment of any Award (or which may be
     repurchased from the Participant of such Award after such Common Shares
     were acquired by the Participant from the Company) in order to satisfy the
     Participant's federal, state, local and foreign income, payroll, social
     security, national insurance or other tax liabilities with respect to the
     issuance, vesting, exercise or payment of the Award shall, unless
     specifically approved by the Committee, be limited to the number of Common
     Shares which have a Fair Market Value on the date of withholding or
     repurchase equal to the aggregate amount of such liabilities based on the
     minimum statutory withholding rates for federal, state, local and foreign
     income, payroll, social security, national insurance or other tax purposes
     that are applicable to such supplemental taxable income.

     Notwithstanding anything contained in the Plan to the contrary, the
     Participant's satisfaction of any tax-withholding requirements imposed by
     the Committee shall be a condition precedent to the Company's obligation as
     may otherwise be provided hereunder to provide Common Shares to the
     Participant, and the failure of the Participant to satisfy such
     requirements with respect to the exercise of an Award shall cause such
     Award to be forfeited.

14.  EXERCISE BY SUCCESSORS AND PAYMENT IN FULL

     An Option may be exercised, and payments in full of the aggregate Option
     Price made, by the Successors of a Participant only by written notice (in
     the form prescribed by the Committee) to the Company specifying the number
     of Common Shares to be purchased. Such notice shall state that the
     aggregate Option Price will be paid in full, or that the Option will be
     exercised as otherwise provided hereunder, in the discretion of the Company
     or the Committee, as applicable.

                                       13

<PAGE>

15.  NON-TRANSFERABILITY OF AWARD

     Each Award granted under the Plan shall by its terms be non-transferrable
     by the Participant except by will or the laws of descent and distribution
     of the jurisdiction wherein the Participant is domiciled at the time of his
     or her death; provided, however, that the Committee may permit other
     transfers, where the Committee concludes that such transferability is
     appropriate and desirable.

16.  REGULATION AND APPROVALS

     (a)  The grant of any Award pursuant to the Plan and the obligation of the
          Company to sell Common Shares with respect to Awards granted under the
          Plan shall be subject to all Applicable Laws, rules and regulations,
          and the rules and regulations of any securities exchange on which the
          Common Shares may be listed and the obtaining of all such approvals by
          governmental agencies as may be deemed necessary or appropriate by the
          Committee.

     (b)  The Committee may make such changes to the Plan as may be necessary or
          appropriate to comply with the rules and regulations of any government
          authority or securities exchange or to obtain tax benefits applicable
          to the Awards.

     (c)  Each Award is subject to the requirement that, if at any time the
          Committee determines, in its discretion, that the listing,
          registration or qualification of Common Shares issuable pursuant to
          the Plan is required by any securities exchange or under any
          Applicable Law, or the consent or approval of any governmental
          regulatory body is necessary or desirable as a condition of, or in
          connection with, the grant of an Award or the issuance of Common
          Shares, no Awards shall be granted or payment made or Common Shares
          issued, in whole or in part, unless listing, registration,
          qualification, consent or approval has been effected or obtained free
          of any conditions in a manner acceptable to the Committee.
          Notwithstanding the foregoing, the Company shall be under no
          obligation to register any of the Common Shares paid pursuant to the
          Plan under any Applicable Law in any applicable jurisdiction. If the
          Common Shares paid pursuant to the Plan may in certain circumstances
          be exempt from registration pursuant to Applicable Laws, the Company
          may restrict the transfer of such shares in such manner as it deems
          advisable to ensure the availability of any such exemption.

17.  INTERPRETATION AND CONSTRUCTION

     The Committee may make such rules and regulations and establish such
     procedures for the administration of the Plan as it deems appropriate.
     Without limiting the generality of the foregoing, the Committee may (i)
     determine in its sole discretion (A) the conditions under which a
     Participant will be considered to have Retired or become Disabled and (B)
     whether any Participant has done so; (ii) establish or assist in the
     establishment of a program (which need not be administered in a
     non-discriminatory or uniform manner) under which the

                                       14

<PAGE>

     Company or a third party may make bona-fide loans on arm's-length terms to
     any or all Participants to assist such Participants with the satisfaction
     of any or all of the obligations that such Participants may have hereunder
     or under which third-party sales may be made for such purpose (including,
     without limitation, a loan program under which the Company or a third party
     would advance the aggregate Option Price to the Participant and be repaid
     with Common Shares or the proceeds thereof and a sale program under which
     funds to pay for Common Shares are delivered by a third party upon the
     third party's receipt from the Company of share certificates); (iii)
     determine the extent, if any, to which Options or Common Shares shall be
     forfeited (whether or not such forfeiture is expressly contemplated
     hereunder); (iv) interpret the Plan and the Award Agreements hereunder,
     with such interpretations to be conclusive and binding on all persons and
     otherwise accorded the maximum deference permitted by law; and (v) take any
     other actions and make any other determinations or decisions that it deems
     necessary or appropriate in connection with the Plan or the administration
     or interpretation thereof. Unless otherwise expressly provided hereunder,
     the Committee, with respect to any Award, may exercise its discretion
     hereunder at the time of the Award grant or thereafter. In the event of any
     dispute or disagreement as to the interpretation of the Plan or of any
     rule, regulation or procedure, or as to any question, right or obligation
     arising from or related to the Plan, the decisions and determinations of
     the Committee shall be final, binding and conclusive upon all persons.

18.  AMENDMENT, MODIFICATION AND TERMINATION OF THE PLAN

     The Compensation Committee of the Board may amend, modify or terminate the
     Plan as it shall deem advisable; provided, however, that (a) to the extent
     necessary and desirable to comply with any Applicable Law, regulation, or
     share exchange rule, the Company shall obtain shareholder approval of any
     Plan amendment in such a manner and to such a degree as required, and (b)
     shareholder approval is required for any amendment to the Plan that (i)
     increases the number of Common Shares available under the Plan (other than
     any adjustment as provided by Section 19), (ii) permits the Committee to
     extend the exercise period for an Option beyond ten years from the date of
     grant, or (iii) results in a material increase in benefits or a change in
     eligibility requirements.

     The Compensation Committee may not make any amendment or modification that
     would cause the Plan to fail to comply with any requirement of Applicable
     Law or regulation. Except in connection with compliance with Applicable
     Laws or exchange listing requirements, no amendment, modification or
     termination may adversely affect a Participant in a material way with
     respect to an Award previously granted, without the prior written consent
     of the Participant.

19.  CHANGES IN CAPITAL STRUCTURE

     (a)  If (i) the Company or its Subsidiaries shall at any time be involved
          in an amalgamation, arrangement or consolidation, spin-off, merger,
          dissolution, liquidation, reorganization, a combination or exchange of
          shares, sale of all or

                                       15

<PAGE>

          substantially all of the assets or shares of the Company or its
          Subsidiaries or a transaction similar thereto, (ii) any share
          dividend, share split, reverse share split, share combination,
          reclassification, recapitalization or other similar change in the
          capital structure of the Company or its Subsidiaries, or any
          distribution to holders of Common Shares other than cash dividends,
          shall occur or (iii) any other event shall occur which in the judgment
          of the Committee necessitates action by way of adjusting the terms of
          the outstanding Awards, then the Committee may forthwith take any such
          action as in its judgment shall be necessary to preserve to the
          Participants' rights substantially proportionate to the rights
          existing prior to such event, including, without limitation,
          adjustments in (w) the number and kind of shares subject to Awards,
          (x) the terms and conditions of any outstanding Awards, (y) the grant
          price or Option Price of any outstanding Awards, and (z) the number
          and kind of shares available under Section 5 hereof. To the extent
          that such action shall include an increase or decrease in the number
          of shares subject to outstanding Options, the number of shares
          available under Section 5 above shall be increased or decreased, as
          the case may be, proportionately.

     (b)  If a Change in Control shall occur, then the Committee may make such
          adjustments as it, in its discretion, determines are necessary or
          appropriate in light of the Change in Control (including, without
          limitation, the substitution of shares other than Common Shares of the
          Company as the Common Shares optioned hereunder, and the acceleration
          of the exercisability of the Options), provided that the Committee
          determines that such adjustments do not have a substantial adverse
          economic impact on the Participant as determined at the time of the
          adjustments. The Committee may specify at the time of grant that an
          Option may be accelerated fully upon the occurrence of certain events,
          including, without limitation, any Change of Control.

     (c)  Except as expressly provided herein, no issuance by the Company of
          shares of any class, or securities convertible into or exchangeable
          for shares of any class, shall affect, and no adjustment by reason
          thereof shall be made with respect to, the number or Option Price of
          Common Shares subject to any Award.

     (d)  The judgment of the Committee with respect to any matter referred to
          in this Section 19 shall be final, conclusive and binding upon each
          Participant without the need for any amendment to the Plan.

20.  SPECIAL PROVISIONS RELATING TO CALIFORNIA RESIDENTS

     Notwithstanding anything to the contrary herein, the following provisions
     shall govern all Options (referred to herein as "California Options")
     granted under the Plan and shares sold (referred to herein as "California
     Share Awards") to residents of the State of California. The grant of
     California Options and California Share Awards are intended to be exempt
     from the securities qualifications requirements of the California law by
     satisfying the exemption under Section 25102(o) of the California Corporate
     Securities law of 1968 ("Section 25102(o)"). Section 25102(o) provides an
     exemption under the U.S. Securities

                                       16

<PAGE>

     Act of 1933 (the "Act") for the offer or sale of any security issued by a
     corporation or limited liability company pursuant to a purchase plan,
     option plan or agreement pursuant to Rule 701 promulgated under the Act,
     provided that (1) the terms of such purchase plan or agreement comply with
     Sections 260.140.42, 260.140.45 and 260.140.46 of Title 10 of the
     California Code of Regulations ("California Regulations"), (2) the terms of
     any option plan or agreement comply with Sections 260.140.41, 260.140.45
     and 260.140.46 of the California Regulations, and (3) the issuer files a
     notice of transaction no later than 30 days after the initial issuance of
     any security under that plan, accompanied by a filing fee. When issuing
     California Options and California Share Awards, the Company shall indicate
     on the securities that they are issued subject to these special provisions.
     However, California Options and California Share Award may be awarded in
     reliance upon other state securities law exemptions. To the extent that
     such other exemptions are relied upon, the terms of this Plan which are
     included only to comply with Section 25102(o) shall be disregarded to the
     extent provided in the Award Agreement.

     (a)  The total number of shares granted pursuant to the Plan is as set
          forth in Section 5 of the Plan.

     (b)  To the extent required by Section 260.140.45 of the California
          Regulations, the total number of shares of Common Shares issuable upon
          exercise of all outstanding Options and the total number of shares of
          Common Shares provided for under any share bonus or similar plan of
          the Company shall not exceed the applicable percentage as calculated
          in accordance with the conditions and exclusions of Section 260.140.45
          of the California Regulations, based on the shares of Common Shares of
          the Company that are outstanding at the time the calculation is made.

     (c)  The option price of each Common Share issuable under a California
          Option shall be determined by the Board at the time of the action for
          the granting of the California Option but shall not, in any event, be
          less than eighty-five percent (85%) of the Fair Market Value of the
          Common Shares on the date of grant. With respect to any California
          Option granted to any Ten Percent Shareholder, the option price shall
          be at least one hundred ten percent (110%) of the Fair Market Value of
          the Common Shares on the date of grant. The purchase price of each
          Common Share sold under a California Share Award shall be determined
          by the Board at the time of the action for the granting of the
          California Share Award but shall not, in any event, be less than
          eighty-five percent (85%) of the Fair Market Value of the Common
          Shares on the date the right to purchase the Common Shares is granted
          or the date the purchase is consummated. With respect to any
          California Share Award granted to any Ten Percent Shareholder of the
          Company, the purchase price shall be at least one hundred ten percent
          (110%) of the Fair Market Value of the Common Shares on the date the
          right to purchase the Common Shares is granted or the date the
          purchase is consummated.

     (d)  The exercise period with respect to California Options shall not
          exceed one hundred twenty (120) months from the date of grant.

                                       17

<PAGE>

     (e)  California Options and unvested California Share Awards shall not be
          transferable other than by will, the laws of descent and distribution,
          or as permitted by Rule 701 of the Securities Act of 1933, as amended.

     (f)  In the event of a share split, reverse share split, share dividend,
          recapitalization, combination or reclassification of the Company's
          share, the number of shares subject to a California Option or
          California Share Award shall be adjusted in accordance with the
          provision of Section 19 of the Plan.

     (g)  California Options shall, at a minimum, be exercisable at a rate of
          twenty percent (20%) per year from the date of grant; provided that in
          the case of a California Option granted to an officer, director or
          consultant of the Company or any of its Subsidiaries, the California
          Option may become fully exercisable, subject to reasonable conditions
          such as continued employment, at any time or during any period
          established by the Company.

     (h)  Unless a Participant's employment is terminated for cause as defined
          by Applicable Law, the terms of the Plan or Award Agreement or a
          contract of employment, the right to exercise a California Option in
          the event of termination of employment, to the extent that the
          California Option is exercisable on the date of such termination of
          employment, is as follows: at least six (6) months from the date of
          termination if termination was caused by death or disability and at
          least thirty (30) days from the date of termination if termination was
          caused by other than death or disability.

     (i)  The Plan shall terminate no later than ten (10) years from the date
          the Plan was adopted or the date the Plan is approved by the
          shareholders, whichever is earlier.

     (j)  The Plan shall be approved by the shareholders within twelve (12)
          months before or after the date of adoption of the Plan by the Board.
          No California Option may be exercised or Common Shares purchased
          pursuant to the Plan if shareholder approval is obtained within twelve
          (12) months before of after the date of adoption of the Plan by the
          Board.

     (k)  The Company will comply with Section 260.140.46 of the California Code
          of Regulations regarding information required to be received by
          employees of the Company residing in the State of California.

     (l)  If the Company has the right to repurchase its Common Shares acquired
          pursuant to the Plan upon termination of a Participant's employment,
          the repurchase price will be presumptively reasonable if: (i) it is
          not less than the Fair Market Value of the Common Shares to be
          repurchased on the date of termination of employment, and the right to
          repurchase must be exercised for cash or cancellation of purchase
          money indebtedness for the shares within 60 days of termination of
          employment (or in the case of Common Shares issued upon exercise of
          California Options after the date of termination, within 60 days after
          the date of the exercise), and the right terminates when the Company's
          Common Shares become publicly traded; or (ii) it is at the original
          purchase price, provided that the right to repurchase at the original

                                       18

<PAGE>

          purchase price lapses at the rate of at least 20% of the shares per
          year over 5 years from the date the California Option or California
          Share Award is granted (without respect to the date the California
          Option was exercised or became exercisable) and the right to
          repurchase must be exercised for cash or cancellation of purchase
          money indebtedness for the shares within 60 days of termination of
          employment (or in the case of Common Shares issued upon exercise of
          California Options after the date of termination, within 60 days after
          the date of the exercise). In addition to the restrictions set forth
          in clauses (i) and (ii), the Common Shares held by an officer,
          director or consultant of the Company or an Affiliate may be subject
          to additional or greater restrictions.

     (m)  The Company will comply with Section 260.140.1 of the California Code
          of Regulations regarding the voting rights of the Common Shares.

21.  NOTICES

     All notices under the Plan shall be in writing, and if to the Company,
     shall be delivered to the Board or mailed to its principal office,
     addressed to the attention of the Board; and if to the Participant, shall
     be delivered personally or mailed to the Participant at the address
     appearing in the records of the Company. Such addresses may be changed at
     any time by written notice to the other party given in accordance with this
     Section 21.

22.  RIGHTS AS SHAREHOLDER

     Neither the Participant nor any person entitled to exercise the
     Participant's rights in the event of death shall have any rights of a
     shareholder with respect to the Common Shares subject to any Award, except
     to the extent that a certificate for such Common Shares shall have been
     issued upon the exercise of the Option as provided for herein. Until the
     issuance of the share certificate evidencing such Option Shares, no right
     to vote or receive dividends or any other rights as a shareholder shall
     exist with respect to the Option Shares, notwithstanding the exercise of
     the Option, and no adjustment will be made for a dividend or other right
     for which the record date is prior to the date the share certificate is
     issued, except as provided in Section 19 of this Plan.

     Notwithstanding anything herein to the contrary, the Company shall not be
     obliged to cause to be issued or delivered any certificates evidencing
     Common Shares to be delivered under the Agreement unless and until the
     Company is advised by its counsel that the issuance and delivery of such
     certificates is in compliance with all Applicable Laws and regulations of
     any governmental authority.

                                       19

<PAGE>

23.  EXCULPATION AND INDEMNIFICATION

     To the maximum extent permitted by law, the Company shall indemnify and
     hold harmless the members of the Board and the members of the Committee
     from and against any and all liabilities, costs and expenses incurred by
     such persons as a result of any act or omission to act in connection with
     the performance of such person's duties, responsibilities and obligations
     under the Plan, other than such liabilities, costs and expenses as may
     result from the gross negligence, bad faith, wilful misconduct or criminal
     acts of such persons.

24.  CAPTIONS

     The use of captions in this Plan is for convenience. The captions are not
     intended to provide substantive rights.

25.  GOVERNING LAW

     The plan shall be governed by the laws of Hong Kong without reference to
     principles of conflict of laws.

26.  SECTION 409A COMPLIANCE

     To the extent that the Committee determines that any Award granted under
     the Plan is or may become subject to Section 409A of the Code, the Award
     Agreement evidencing such Award shall incorporate the terms and conditions
     required by Section 409A of the Code. To the extent applicable, the Plan
     and the Award Agreements shall be interpreted in accordance with Section
     409A of the Code and the U.S. Department of Treasury regulations and other
     interpretative guidance issued thereunder, including without limitation any
     such regulation or other guidance that may be issued after the Effective
     Date. Notwithstanding any provision of the Plan to the contrary, in the
     event that following the Effective Date the Committee determines that any
     Award may be subject to Section 409A of the Code and related Department of
     Treasury guidance (including such Department of Treasury guidance as may be
     issued after the Effective Date), the Committee may adopt such amendments
     to the Plan and the applicable Award agreement or adopt other policies and
     procedures (including amendments, policies and procedures with retroactive
     effect), or take any other actions, that the Committee determines is
     necessary or appropriate to (a) exempt the Award from Section 409A of the
     Code and/or preserve the intended tax treatment of the benefits provided
     with respect to the Award, or (b) comply with the requirements of Section
     409A of the Code and related U.S. Department of Treasury guidance.

27.  MISCELLANEOUS

     (a)  No Participant, Employee, or other person shall have any claim to be
          granted any Award pursuant to the Plan, and neither the Company nor
          the Committee is obligated to treat Participants, employees, and other
          persons uniformly.

                                       20

<PAGE>

     (b)  The Plan is intended to be an "unfunded" plan for incentive
          compensation. With respect to any payments not yet made to a
          Participant pursuant to an Award, nothing contained in the Plan or any
          Award Agreement shall give the Participant any rights that are greater
          than those of a general creditor of the Company or any Subsidiary.

     (c)  No payment pursuant to the Plan shall be taken into account in
          determining any benefits pursuant to any pension, retirement, savings,
          profit sharing, group insurance, welfare or other benefit plan of the
          Company or any Subsidiary except to the extent otherwise expressly
          provided in writing in such other plan or an agreement thereunder.

                                       21

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