Document:

EX-4.57

Exhibit 4.57

Xinhua Finance Media Limited

and

Prime Day Management Limited

and

Starease Limited

and

Ge Zhijun

 

PURCHASE AGREEMENT

IN RESPECT OF

SHARES IN THE CAPITAL OF

STAREASE LIMITED

AND

OTHER ASSETS SET OUT HEREIN

 

9 October 2008

www.klgates.com

 

THIS PURCHASE AGREEMENT (this “Agreement”) is made on the 9th day of October 2008

	 	 	 
	BETWEEN
	 	 
	 
	 	 
	 

	 	Xinhua Finance Media Limited, a company incorporated under the
laws of the Cayman Islands with registration number 157511 and its
registered address located at Century Yard, Cricket Square, Hutchins
Drive, P.O. Box 2681GT, George Town, Grand Cayman, Cayman Islands,
British West Indies (“XFM”);
	 
	 	 
	AND
	 	 
	 
	 	 
	 

	 	Prime Day Management Limited, a company incorporated under the
laws of the British Virgin Islands and its registered address located
at P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola,
British Virgin Islands (the “Vendor”);
	 
	 	 
	AND
	 	 
	 
	 	 
	 

	 	Starease Limited, a company incorporated under the laws of the
British Virgin Islands with incorporation number 1499637 and its
registered address located at P.O. Box 957, Offshore Incorporations
Centre, Road Town, Tortola, British Virgin Islands (the “Company”);
	 
	 	 
	AND
	 	 
	 
	 	 
	 

	 	Ge Zhijun, holder of PRC identity card number 120106196803171515
of Room 1110, Block 1, Wanke City Garden, Xinxing Road, Heping
District, Tianjin, People’s Republic of China (the “Covenantor”).

WHEREAS

	A.	 	The Vendor owns all of the legal and beneficial interest in the share capital of the Company.
	 
	B.	 	The Company owns all of the legal and beneficial interest in the share capital of CMN.
	 
	C.	 	CMN owns all of the legal and beneficial interest in the equity capital of Haipei.
	 
	D.	 	XFM desires to purchase from the Vendor and the Vendor wishes to sell to XFM all of the shares in the capital of the Company and the Vendor and the Covenantor wisheto procure the
sale of certain other assets controlled by them to parties designated by XFM subject to the
terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth herein, the
sufficiency, adequacy and receipt of which are hereby acknowledged, XFM, the Company, the Vendor
and the Covenantor hereby agree as follows:

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	1.	 	DEFINITIONS

	1.1	 	Definitions. The following terms when used herein shall have the meanings ascribed to them below:

	 	 	 	 	 
	 

	 	“Accounts Receivables”
	 	means (a) any right to payment for goods sold,
leased or licensed or for services rendered, whether
or not it has been earned by performance, whether
billed or unbilled, and whether or not it is
evidenced by any contract or agreement or otherwise;
(b) any note receivable; or (c) any other receivable
or right to payment of any nature;
	 
	 	 	 	 
	 

	 	“Affiliates”
	 	of a specified Person means any other Person that,
directly or indirectly, through one or more
intermediaries, Controls, is Controlled by, or is
under common Control with, such specified Person or,
in the case of a natural Person, such Person’s
spouse, parents and descendants (whether by blood or
adoption and including stepchildren);
	 
	 	 	 	 
	 

	 	“Ancillary Agreements”
	 	means, collectively, the Equity Transfer Documents,
the Internal Control Agreements and any other
agreements contemplated in this Agreement;
	 
	 	 	 	 
	 

	 	“Assets”
	 	means any real, personal, mixed, tangible,
intangible or other property of any nature,
including, but not limited to, cash or cash
equivalents, inventory, prepayments, deposits,
escrows, Accounts Receivables, Tangible Property,
Intellectual Property, Real Property, software and
goodwill, and claims, causes of action and other
legal rights and remedies of any nature whatsoever;
	 
	 	 	 	 
	 

	 	“Balance Jiasen Closing

Consideration”
	 	has the meaning ascribed to it in Clause 2.3(a);
	 
	 	 	 	 
	 

	 	“Business Day”
	 	means any Monday, Tuesday, Wednesday, Thursday and
Friday on which banks in Hong Kong or the PRC are
required or permitted by laws to be open and shall
not include a day on which normal banking hours are
shortened or interrupted by typhoon, rain or similar
warnings;
	 
	 	 	 	 
	 

	 	“Claimant”
	 	has the meaning ascribed to it in Clause 13.3(a);
	 
	 	 	 	 
	 

	 	“Closing”
	 	means, collectively, the Jiasen Closing and the JV
Closing;
	 
	 	 	 	 
	 

	 	“Closing Deliverable

Agreements”
	 	means all the agreements or documents required to be
delivered by the Vendor or the Covenantor under this
Agreement as conditions to SDTC Closing or JV
Closing;

- 2 -

 

	 	 	 	 	 
	 

	 	“CMN”
	 	means China Media Network Limited, a company
incorporated under the laws of Hong Kong with
incorporation number 1173165 and its registered
address located at Rooms 1910-1913, Hutchison House,
10 Harcourt Road, Central, Hong Kong, the
particulars of which are set forth under Schedule B;
	 
	 	 	 	 
	 

	 	“Company Charter

Documents”
	 	has the meaning ascribed to it in Schedule D;
	 
	 	 	 	 
	 

	 	“Company Shares”
	 	means all of the share capital of the Company being
ordinary shares each with a par value of US$1 in the
capital of the Company;
	 
	 	 	 	 
	 

	 	“Consent”
	 	means any consent, approval, permit, license, order,
or authorization of or registration, declaration, or
filing with or exemption by Governmental Entity;
	 
	 	 	 	 
	 

	 	“Control”, “Controls”,

“Controlled”
	 	(or any correlative term) means the possession,
directly or indirectly, of the power to direct or
cause the direction of the management of a Person,
whether through the ownership of voting securities,
by contract, credit arrangement or proxy, as
trustee, executor, agent or otherwise. For the
purpose of this definition, a Person shall be deemed
to Control another Person if such first Person,
directly or indirectly, owns or holds more than 50%
of the voting equity interests in such other Person;
	 
	 	 	 	 
	 

	 	“Digital Channels”
	 	means, collectively, the four (4) digital pay TV
channels namely, Time Household, Time Fashion, Time
Food and Time Househol, the particulars of which are
set forth in Schedule F;
	 
	 	 	 	 
	 

	 	“Disclosing Party”
	 	has the meaning ascribed to it in Clause 12.4;
	 
	 	 	 	 
	 

	 	“Dispute Notice”
	 	has the meaning ascribed to it in Clause 13.3(a);
	 
	 	 	 	 
	 

	 	“Deposit”
	 	has the meaning ascribed to it in Clause 2.3(a)(i);
	 
	 	 	 	 
	 

	 	“Encumbrance”
	 	means and includes any interest or equity of any
person (including, without prejudice to the
generality of the foregoing, any right to acquire,
option or right of pre-emption) or any mortgage,
charge, pledge, lien or assignment or any other
encumbrance, priority or security interest or
arrangement of whatsoever nature over or in the
relevant property;
	 
	 	 	 	 
	 

	 	“Equity Interests”
	 	means, collectively, the Jiasen Equity Interests and
SDTC

- 3 -

 

	 	 	 	 	 
	 

	 	 	 	Equity Interests;
	 
	 	 	 	 
	 

	 	“Equity Transfer”
	 	means, collectively, the Jiasen Equity Transfer and
SDTC Equity Transfer;
	 
	 	 	 	 
	 

	 	“Equity Transfer

Documents”
	 	means all the documents, agreements and instruments
as set forth under Schedule M;
	 
	 	 	 	 
	 

	 	“Financial Statements”
	 	means the result of the financial due diligence
conducted by XFM in respect of the financial
condition of members of the Group including, but not
limited to, the financial statements of SDTC
provided to XFM as set forth under Schedule O;
	 
	 	 	 	 
	 

	 	“Foreign Exchange Rate”
	 	means the average of the closing middle exchange
rates posted on the website of the State
Administration of Foreign Exchange at
www.safe.gov.cn for the conversion of RMB to USD on
the close of the fifteen trading days prior to any
date of payment under this Agreement;
	 
	 	 	 	 
	 

	 	“Governmental Entity”
	 	means any court, regulatory body, administrative
agency or commission or other governmental authority
or instrumentality, whether domestic or foreign;
	 
	 	 	 	 
	 

	 	“Group”
	 	means, collectively, the Company, CMN and the PRC
Group;
	 
	 	 	 	 
	 

	 	“HBLD”
	 	means Shenshen Haibei Lei Di Business Consulting
Co., Ltd. (“”), a company
incorporated under the laws of the PRC with a
registered address at No.629, West of the Sixth
Floor of Honggui Apartment, No. 2068 Honggui Road,
Luohu District, Shenzhen, PRC, the particulars of
which are set forth under Schedule B;
	 
	 	 	 	 
	 

	 	“Hong Kong”
	 	means the Hong Kong Special Administrative Region of
the PRC;
	 
	 	 	 	 
	 

	 	“Indemnified Party”
	 	has the meaning ascribed to it in Clause 10.5;
	 
	 	 	 	 
	 

	 	“Indemnifying Party”
	 	has the meaning ascribed to it in Clause 10.5;
	 
	 	 	 	 
	 

	 	“Intellectual Property”
	 	means, collectively, the Owned Intellectual Property
and the Licensed Intellectual Property;
	 
	 	 	 	 
	 

	 	“Internal Control

Agreements”
	 	means all the documents, agreements and instruments
as set forth under Schedule N;
	 
	 	 	 	 
	 

	 	“Jiasen”
	 	means Shanghai Jia Shen Advertising Co., Ltd. (“

- 4 -

 

	 	 	 	 	 
	 

	 	 	 	”), a company incorporated under
the laws of the PRC with a registered address at
Room 108, Building 2, No.188, Lane 1035, Qilianshan
Road, Putuo District, Shanghai, the particulars of
which are set forth under Schedule B;
	 
	 	 	 	 
	 

	 	“Jiasen Closing”
	 	has the meaning ascribed to it in Clause 2.5;
	 
	 	 	 	 
	 

	 	“Jiasen Closing

Conditions”
	 	has the meaning ascribed to it in Clause 3.1;
	 
	 	 	 	 
	 

	 	“Jiasen Closing

Consideration”
	 	has the meaning ascribed to it in Clause 2.3(a);
	 
	 	 	 	 
	 

	 	“Jiasen Closing Date”
	 	has the meaning ascribed to it in Clause 2.5;
	 
	 	 	 	 
	 

	 	“Jiasen Cooperation

Agreement”
	 	means the cooperation agreement entered into between
Jiasen and Tianjin TV Station the form of which is
set out under ScheduleL;
	 
	 	 	 	 
	 

	 	“Jiasen Equity Interests”
	 	means the entire equity interest of Jiasen
representing a total registered capital of
RMB100,000;
	 
	 	 	 	 
	 

	 	“Jiasen Equity Transfer”
	 	has the meaning ascribed to it in Clause 2.2;
	 
	 	 	 	 
	 

	 	“Jiasen Equity Transfer

Documents”
	 	means, collectively, the documents set out under
ScheduleM;
	 
	 	 	 	 
	 

	 	“Jiasen Payment”
	 	has the meaning ascribed to it in Clause 2.3(a);
	 
	 	 	 	 
	 

	 	“JVs”
	 	means, collectively, the joint venture companies to
be established by SDTC and XFM VIE pursuant to
Clause 4;
	 
	 	 	 	 
	 

	 	“JV Closing”
	 	has the meaning ascribed to it in Clause 5.1;
	 
	 	 	 	 
	 

	 	“JV Closing Conditions”
	 	has the meaning ascribed to it in Clause 5.2;
	 
	 	 	 	 
	 

	 	“JV Closing Date”
	 	has the meaning ascribed to it in Clause 5.1;
	 
	 	 	 	 
	 

	 	“JV Cooperation

Agreements”
	 	has the meaning ascribed to it in Clause 5.3(h);
	 
	 	 	 	 
	 

	 	“Lease”
	 	has the meaning ascribed to it in Schedule D and the
particulars of which are set forth in Schedule H;
	 
	 	 	 	 
	 

	 	“Licenses”
	 	means all the licenses set forth under Schedule K;

- 5 -

 

	 	 	 	 	 
	 

	 	“Licensed Intellectual

Property”
	 	means any and all license rights granted to any
member of the Group in any third party intellectual
property or other proprietary or personal rights,
including any and all of the following that are
licensed to any member of the Group anywhere in the
world: (1) trademarks, trade names, service marks
and trade dress, and all goodwill associated with
trademarks, trade names, service marks and trade
dress; (2) patents; (3) mask works; (4) utility
models; (5) domain names; (6) copyrights and
copyrightable works; (7) databases; (8) graphics;
(9) schematics; (10) marketing, sales and user data;
(11) technology; (12) trade secrets, including
confidential know-how, inventions, specifications
and processes; (13) computer software programs of
any kind (in both source and object code form); (14)
application programming interfaces; (15) protocols;
and (16) any renewal, extension, reissue,
continuation or division rights, applications and/or
registrations for any of the foregoing;
	 
	 	 	 	 
	 

	 	“Losses”
	 	has the meaning ascribed to it in Clause 10.1;
	 
	 	 	 	 
	 

	 	“Material Adverse Change”
	 	means any event or circumstance that occurs which
might reasonably be expected to have a material
adverse effect on the prospects, business,
operations or financial condition of the Group taken
as a whole or that would materially affect the
ability of any of the companies in the Group or any
Person who is a party to any of the Ancillary
Agreements or this Agreement to perform its
obligations under any of the Ancillary Agreements or
this Agreement;
	 
	 	 	 	 
	 

	 	“Market Value”
	 	means in respect of each XFM Common Shares means the
average of the closing price of each XFM Common
Shares or its equivalent in American Depository
Receipts or other tradable instruments representing
such shares on NASDAQ for the fifteen (15) trading
days up to and including the third trading day prior
to the applicable date (adjusted to give effect to
any splits, consolidations, dividends or other
recapitalizations occurring during such fifteen-day
period);
	 
	 	 	 	 
	 

	 	“Material Contracts”
	 	means the material contracts the particulars of
which are set forth in Schedule I;
	 
	 	 	 	 
	 

	 	“NASDAQ”
	 	means the National Association of Securities Dealers
Automated Quotations;
	 
	 	 	 	 
	 

	 	“Non-Disclosing Parties”
	 	has the meaning ascribed to it in Clause 12.4;

- 6 -

 

	 	 	 	 	 
	 

	 	“Owned Intellectual

Property”
	 	means any and all of the following that are owned
(including joint ownership) or held by any member of
the Group anywhere in the world: (1) trademarks,
trade names, service marks and trade dress, and all
goodwill associated with trademarks, trade names,
service marks and trade dress; (2) patents; (3) mask
works; (4) utility models; (5) domain names; (6)
copyrights and copyrightable works; (7) databases;
(8) graphics; (9) schematics; (10) marketing, sales
and user data; (11) technology; (12) trade secrets,
including confidential know-how, inventions,
specifications and processes; (13) computer software
programs of any kind (in both source and object code
form); (14) application programming interfaces; (15)
protocols; and (16) any renewal, extension, reissue,
continuation or division rights, applications and/or
registrations for any of the foregoing;
	 
	 	 	 	 
	 

	 	“Person” or “Persons”
	 	means any natural person, corporation, company,
association, partnership, organization, business,
firm, joint venture, trust, unincorporated
organization or any other entity or organization,
and shall include any governmental authority;
	 
	 	 	 	 
	 

	 	“PRC”
	 	means the People’s Republic of China;
	 
	 	 	 	 
	 

	 	“PRC Charter Documents”
	 	has the meaning ascribed to it in Schedule D;
	 
	 	 	 	 
	 

	 	“PRC Group”
	 	means, collectively, HBLD, Jiasen and SDTC;
	 
	 	 	 	 
	 

	 	“Pre-Closing Tax Period”
	 	has the meaning ascribed to it in Clause 10.1(c);
	 
	 	 	 	 
	 

	 	“Real Property”
	 	means any real estate, land, building, condominium,
town house, structure or other real property of any
nature, all shares of stock or other ownership
interests in cooperative or condominium associations
or other forms of ownership interest through which
interests in real estate may be held, and all
appurtenant and ancillary rights thereto, including,
but not limited to, easements, covenants, water
rights, sewer rights and utility rights;
	 
	 	 	 	 
	 

	 	“Relevant Date”
	 	means the respective payment date of the Total
Consideration;
	 
	 	 	 	 
	 

	 	“Return Periods”
	 	has the meaning ascribed to it in Schedule D;
	 
	 	 	 	 
	 

	 	“Returns”
	 	has the meaning ascribed to it in Schedule D;

- 7 -

 

	 	 	 	 	 
	 

	 	“RMB” and “Renminbi”
	 	means the lawful currency of the People’s Republic
of China
	 
	 	 	 	 
	 

	 	“SAIC”
	 	means the State Administration of Industry and
Commerce and its competent branches;
	 
	 	 	 	 
	 

	 	“SDTC”
	 	means Tianjin Shi Dai Tian Chuang Media Development
Co., Ltd. (“”), a company
incorporated under the laws of the PRC with a
registered address at No.8 Xinghua 7th Branch Road,
Xiqing Economic Development Zone, Tianjin, the
particulars of which are set out under Schedule B;
	 
	 	 	 	 
	 

	 	“SDTC Equity Interests”
	 	means the entire equity interests of SDTC
representing a total registered capital of
RMB55,000,000;
	 
	 	 	 	 
	 

	 	“SDTC Equity Transfer”
	 	has the meaning ascribed to it in Clause 2.2(b);
	 
	 	 	 	 
	 

	 	“Straddle Period”
	 	has the meaning ascribed to it in Clause 10.2(c);
	 
	 	 	 	 
	 

	 	“Tangible Property”
	 	means any furniture, fixtures, leasehold
improvements, vehicles, office equipment, computer
equipment, other equipment, machinery, tools, spare
parts, forms, supplies or other tangible personal
property of any nature;
	 
	 	 	 	 
	 

	 	“Tax Settlement Option”
	 	has the meaning ascribed to it in Clause 10.2(b);
	 
	 	 	 	 
	 

	 	“TJYX”
	 	means Tianjin Yinxin XinHeng Investment Consulting
Co., Ltd.
(), the existing
owner of 49% of the SDTC Equity Interests;
	 
	 	 	 	 
	 

	 	“Total Consideration”
	 	has the meaning ascribed to it in Clause 2.3;
	 
	 	 	 	 
	 

	 	“US$” and “US Dollars”
	 	means the lawful currency of the United States of
America;
	 
	 	 	 	 
	 

	 	“XFM Common Shares”
	 	means Class A common shares in the share capital of
XFM with a par value of US$0.001 each;
	 
	 	 	 	 
	 

	 	“XFM Nominee”
	 	means any Person or Persons nominated by XFM; and
	 
	 	 	 	 
	 

	 	“XFM VIE”
	 	means, a company incorporated under the laws of the
PRC designated by XFM.

- 8 -

 

	1.2	 	Interpretation. In this Agreement:

	 	(a)	 	the headings are inserted for convenience only and shall not affect the
construction of this Agreement;
	 
	 	(b)	 	references to statutory provisions shall be construed as references to those
provisions as amended or re-enacted or as their application is modified by other
statutory provisions (whether before or after the date hereof) from time to time and
shall include any provisions of which they are re-enactments (whether with or without
modification);
	 
	 	(c)	 	all time and dates in this Agreement shall be Hong Kong time and dates except
where otherwise stated;
	 
	 	(d)	 	unless the context requires otherwise, words incorporating the singular shall
include the plural and vice versa and words importing a gender shall include every
gender; and
	 
	 	(e)	 	references herein to Clauses, Recitals and Schedules are to clauses and
recitals of and schedules to this Agreement.

	1.3	 	Recitals, Schedules. All recitals and schedules form part of this Agreement and
shall have the same force and effect as if expressly set forth in the body of this Agreement
and any reference to this Agreement shall include the recitals and schedules.
	 
	1.4	 	Joint Obligations. Warranties, covenants, indemnities or other obligations expressed
in this Agreement to be given by more than one party shall be deemed to be given by such
parties on a joint and several basis unless otherwise expressly provided for.

			
	2.	 	SALE AND PURCHASE OF COMPANY SHARES AND PROCUREMENT OF SALE OF EQUITY INTEREST

	2.1	 	Purchase and Sale of Company Shares. Subject to the terms and conditions set forth
in this Agreement, XFM (relying on the representations, warranties, agreements, covenants,
undertakings and indemnities hereinafter referred to) agrees with the Vendor to purchase and
the Vendor and the Covenantor agree to sell and cause to be sold to XFM or the XFM Nominee at
Jiasen Closing, all of its direct and indirect interests in the Company Shares with effect
from the Jiasen Closing Date free from all options, liens, charges, pledges, claims,
agreements, encumbrances, equities and other third party rights of any nature whatsoever and
together with all rights of any nature whatsoever now or hereafter attaching or accruing to
them including all rights to any dividends or other distribution declared, paid or made in
respect of them after the Jiasen Closing Date.
	 
	2.2	 	Transfers of Equity Interests. The Vendor and the Covenantor shall jointly and
severally procure and guarantee each of the following as soon as practicable following the
execution and delivery of this Agreement and at or prior to Jiasen Closing:

- 9 -

 

	 	(a)	 	within one (1) month from the signing of this Agreement, complete the
transfer and procure the completion of the transfer (as the case may be) of all of the
Jiasen Equity Interests from the existing holders thereof to XFM Nominee (the “Jiasen
Equity Transfer”) in consideration of the Jiasen Payment including, but not limited
to, the execution, submission to and registration with the relevant Governmental Entities of all the Jiasen Equity
Transfer Documents and obtaining the original new business licence of Jiasen
reflecting the change of shareholding following the Jiasen Equity Transfer and the
original notice from local Administration of Industry and Commerce approving the
change of registration of Jiasen. The Vendor and the Covenantor shall jointly and
severally procure the due execution and delivery of all documents required to be
executed and delivered by the holders of the Jiasen Equity Interests or any other
party necessary to vest in XFM Nominee its interest in all property and rights in
and to the Jiasen Equity Interests as are intended to be vested in it in
consideration of the Jiasen Payment by or pursuant to this Agreement and the
Ancillary Agreements; and
	 
	 	(b)	 	complete the transfer and procure the completion of the transfer (as the case
may be) of 49% of the SDTC Equity Interests from TJYX to Jiasen (the “SDTC Equity
Transfer”) including, but not limited to, the execution, submission to and
registration with the relevant Governmental Entities of all necessary documents and
obtaining the original new business licence of SDTC reflecting the change of
shareholding following the SDTC Equity Transfer and obtaining the original new
business licence of SDTC reflecting the change of shareholding following the SDTC
Equity Transfer and the original notice from local Administration of Industry and
Commerce approving the change of registration of SDTC. The Vendor and the Covenantor
shall jointly and severally procure the due execution and delivery of all documents
required to be executed and delivered by the holders of the SDTC Equity Interests or
any other party necessary to vest in Jiasen its interest in all property and rights in
the SDTC Equity Interests as are intended to be vested in it by or pursuant to this
Agreement and the Ancillary Agreements.

	2.3	 	Payment. Subject to the conditions stipulated herein, XFM shall pay to the Vendor
Fifteen Million (US$15,000,000) US Dollars and Two Million (2,000,000) XFM Common Shares
(collectively, the “Total Consideration”) in the manner set forth below:

	 	(a)	 	Jiasen Closing Consideration. Ten Million (US$10,000,000) US Dollars
(“Jiasen Closing Consideration”) which shall be payable as follows:

	 	(i)	 	subject to Clause 2.3A, Five Million (US$5,000,000) US
Dollars (the “Deposit”) shall be payable in cash to the Vendor upon the
execution of this Agreement as a deposit; and

- 10 -

 

	 	(ii)	 	Five Million (US$5,000,000) US Dollars (the “Balance Jiasen
Closing Consideration”) shall be payable in cash on the Jiasen Closing Date as
follows:

	 	(A)	 	RMB100,000 (the “Jiasen Payment”) shall be
paid to the existing shareholders of Jiasen or such parties as the
said shareholders may designate; and
	 
	 	(B)	 	the Balance Jiasen Closing Consideration less
the Jiasen Payment (in its US$ equivalent calculated based on the
Foreign Exchange Rate) shall be paid to the Vendor.

	 	(b)	 	JV Closing Consideration. Five Million (US$5,000,000) US Dollars and
Two Million (2,000,000) XFM Common Shares (the “JV Closing Consideration”) shall be
payable within ten (10) Business Days following the JV Closing Date. Notwithstanding
the foregoing, XFM may, in its sole discretion, deliver to the Vendor or any other
person(s) designated by the Vendor money in US Dollars in lieu of all or a portion of
the JV Closing Consideration otherwise deliverable to the Vendor in XFM Common Shares,
the amount of which shall be the Market Value.

	2.3A	 	Conditions to Deposit. The payment of the Deposit is subject to the following
conditions having been satisfied or waived on or before the signing of this Agreement or on
such date as additionally agreed by XFM:

	 	(a)	 	the Jiasen Cooperation Agreement shall have been duly executed and delivered
by all parties thereto and is in full force and effect and is unamended and not
terminated; and

(b) a certified true copy of the duly executed Jiasen Cooperation Agreement has been delivered to
XFM.

	2.4	 	Deposit. If for any reason (other than due to the fault of XFM) Jiasen Closing does
not occur or this Agreement is terminated prior to Jiasen Closing, the Vendor and the
Covenantor shall return forthwith the Deposit to XFM together with interest thereon calculated
at Twelve Per Cent (12%) per annum calculated daily.
	 
	2.5	 	Jiasen Closing. Upon the Jiasen Closing Conditions having been satisfied or waived
on or before the expiration of the time period herein for the fulfilment of such conditions,
the completion of the purchase and sale of the Company Shares and the Jiasen Equity Interests
(collectively, the “Jiasen Closing”) shall take place at the offices of K&L Gates in Hong Kong
or at such other place as may be agreed upon by the Parties. The date and time of the Jiasen
Closing are herein referred to as the “Jiasen Closing Date”. For greater certainty, XFM shall
not be obliged to pay any amount of the Balance Jiasen Closing Consideration unless all the
Jiasen Closing Conditions are fulfilled or waived by XFM. Without prejudice to any other
remedies available to XFM, XFM may defer Jiasen Closing and the payment of the Balance 

- 11 -

 

	 	 	Jiasen Closing Consideration until all Jiasen Closing Conditions are fulfilled or waived.

			
	3.	 	CONDITIONS TO JIASEN CLOSING

	3.1	 	Conditions to Jiasen Closing. The obligations of XFM under this Agreement to
complete the purchase of the Company Shares and to pay the Balance Jiasen Closing
Consideration are subject to the satisfaction or waiver on or before the Jiasen Closing Date
of all of the following conditions and the delivery of all of the documents set out hereunder
(collectively, the “Jiasen Closing Conditions”).
	 
	3.2	 	Jiasen Closing Deliverables. Upon the Jiasen Closing, the Vendor and/or the
Covenantor shall deliver or procure to be fulfilled or delivered to XFM the following
documents:

	 	(a)	 	in respect of the Company and the Company Shares:

	 	(i)	 	duly completed and executed undated instrument of transfer of
the Company Shares by the Vendor in favour of XFM or an XFM Nominee together
with the original share certificates representing the applicable Company
Shares in a form satisfactory to XFM;
	 
	 	(ii)	 	duly completed and executed documents required for the resignation of
existing directors and appointment of new directors of the Company
including, but not limited to, letters of resignation from existing
directors of the Company in a form satisfactory to XFM;
	 
	 	(iii)	 	duly completed and executed documents required for the resignation of
existing company secretary and appointment of new company secretary of the
Company including, but not limited to, letters of resignation from existing
company secretary of the Company in a form satisfactory to XFM;
	 
	 	(iv)	 	certified true copy of written notice in the form satisfactory to XFM
issued to the BVI registered agent of the Company notifying them of the
change in authorised contact person of the Company and a written
acknowledgement from the registered agent in relation thereto;
	 
	 	(v)	 	certified true copy of shareholders’ and directors’
resolution of the Company approving the resignation of the existing directors
and company secretary, the appointment of the persons nominated by XFM to be
new directors and company secretary, the transfer of the Company Shares and
change of principal office of the Company in a form satisfactory to XFM;
	 
	 	(vi)	 	certified true copy of shareholders’ and directors’ resolution of the
Vendor approving the transfer of the Company Shares in a form satisfactory
to XFM;

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	 	(vii)	 	all books and records of the Company (including its company
chop and seal);
	 
	 	(viii)	 	original certificate of incumbency of the Company dated not more than ten
(10) days prior to the Jiasen Closing Date in the form satisfactory to XFM;
	 
	 	(ix)	 	original certificate of good standing of the Company dated
not more than ten (10) days prior to the Jiasen Closing Date in the form
satisfactory to XFM; and
	 
	 	(x)	 	originals of duly completed and executed documents required
for the change in the bank account signatories of all bank accounts of the
Company to the person designated by XFM.

	 	(b)	 	in respect of CMN:

	 	(i)	 	duly completed and signed documents required for the resignation of
existing directors and appointment of new directors of CMN consisting of,
but not limited to, the following:

	 	(A)	 	Form D2A in a form satisfactory to XFM;
	 
	 	(B)	 	letters of resignation from existing
directors of CMN in a form satisfactory to XFM; and
	 
	 	(C)	 	shareholders’ and directors’ resolution of
CMN approving the resignation of the existing directors and company
secretary, the appointment of the persons as nominated by XFM to be
new directors and company secretary and the change of the registered
office of CMN in a form satisfactory to XFM;

	 	(ii)	 	certificate of continuing registration of CMN dated a date not earlier
than ten (10) Business Days prior to the Jiasen Closing Date;
	 
	 	(iii)	 	all books and records of CMN (including its company chop and
seal); and
	 
	 	(iv)	 	duly completed and executed documents required for the change in the
bank account signatories of all bank accounts of CMN to such person as
designated by XFM; and

	 	(c)	 	in respect of HBLD:

	 	(i)	 	originals of all documents and agreements required for the
resignation of existing directors and legal representative of HBLD;

- 13 -

 

	 	(ii)	 	originals of all documents and agreements required for the
appointment of such person designated by XFM to be the director(s) and legal
representative of HBLD;
	 
	 	(iii)	 	originals of duly completed and signed documents required
for the change in the bank account signatories of all bank accounts of HBLD to
such person as designated by XFM; and
	 
	 	(iv)	 	all original corporate records of HBLD (including all of its
original licenses, certificates and approvals and its company chop, seal and
finance chop);

	 	(d)	 	in respect of Jiasen and the Jiasen Equity Transfer:

	 	(i)	 	all original documents and agreements duly completed and
executed as required by XFM for the sale and transfer of the Jiasen Equity
Interests including, but not limited to, the Jiasen Equity Transfer Documents;
	 
	 	(ii)	 	original documents and agreements duly completed and executed
as required by XFM for the resignation of all the existing directors and legal
representative of Jiasen;
	 
	 	(iii)	 	all original documents and agreements duly completed and signed as
required by XFM for the appointment of such person(s) as designated by XFM
to be the director(s) and legal representative of Jiasen;
	 
	 	(iv)	 	originals of duly completed and executed documents required for the
change in the bank account signatories of all bank accounts of Jiasen to
such person as designated by XFM;
	 
	 	(v)	 	evidence satisfactory to XFM that the competent SAIC has
accepted the application for filing the Jiasen Equity Transfer including, but
not limited to, the original business licence of Jiasen reflecting the
shareholding of Jiasen following the Jiasen Equity Transfer;
	 
	 	(vi)	 	all original corporate records of Jiasen (including all of
its original licenses, certificates and approvals and its company chop, seal
and finance chop);
	 
	 	(vii)	 	all powers of attorney or other authorities under which the
transfer of the Jiasen Equity Interests have been executed (if any); and
	 
	 	(viii)	 	such waivers, consents and other documents as XFM may require to give to XFM
Nominee good title to the Jiasen Equity Interests to enable XFM Nominee to
become the registered holders thereof;

	 	(e)	 	in respect of SDTC and the SDTC Equity Transfer:

- 14 -

 

	 	(i)	 	certified true copies of all original documents and
agreements duly completed and executed as required by XFM for the purposes of
the sale and transfer of the SDTC Equity Interests and waiver duly issued by
Tianjin TV Station for its first right of refusal;
	 
	 	(ii)	 	certified true copies of all original documents and
agreements duly completed and executed as required by XFM for the appointment
of such person as designated by XFM as additional director of SDTC;
	 
	 	(iii)	 	evidence satisfactory to XFM that the competent SAIC has
accepted the application for filing the SDTC Equity Transfer including, but
not limited to, the original business licence of SDTC reflecting the
shareholding of SDTC following the SDTC Equity Transfer and the original
notice from local Administration of Industry and Commerce approving the change
of registration of SDTC;
	 
	 	(iv)	 	all original corporate records of SDTC (including all of its
original licenses, certificates and approvals and its company chop, seal and
finance chop);
	 
	 	(v)	 	the amendment of the articles of association of SDTC to
provide for a board of five (5) directors of which two (2) directors shall be
appointed by the XFM Nominee and any other documents as may be required to
effect the foregoing;
	 
	 	(vi)	 	all powers of attorney or other authorities under which the
transfer of the SDTC Equity Interests have been executed and delivered (if
any); and
	 
	 	(vii)	 	such waivers, consents and other documents as XFM may
require to give to Jiasen good title to the SDTC Equity Interests to enable
Jiasen to become the registered holder thereof;

	 	(f)	 	Other Deliverables.

	 	(i)	 	original Internal Control Documents duly completed and
executed by Jiasen and such other party as XFM may direct and the evidence
certifying the pledge of share equity of Jiasen, as contemplated in the said
Internal Control Documents, having be duly registered with the competent
Governmental Entity such as the Administration of Industry and Commerce in
accordance with the applicable laws;
	 
	 	(ii)	 	the original of the duly executed Jiasen Cooperation
Agreement;
	 
	 	(iii)	 	written confirmation from the Vendor that it is not aware of
any matter or thing which is in breach of or inconsistent with any of the
representations, warranties and undertakings herein contained; and

- 15 -

 

	 	(iv)	 	such other agreements, documents and actions as XFM may
reasonably require for the purposes herein, including but not limited to, all
documents required to be executed, submitted to and/or registered with to any
Governmental Entity.

	3.3	 	Other Jiasen Closing Conditions. The obligations of XFM under this Agreement to
complete the purchase of the Company Shares and the Jiasen Equity Interests and pay the Jiasen
Closing Consideration are subject to the satisfaction or waiver on or before the Relevant Date
of each of the following:

	 	(a)	 	Representations and Warranties. All representations and warranties
shall be true on and as of the Jiasen Closing or the date of payment with the same
effect as though such representations and warranties had been made on and at such
date.
	 
	 	(b)	 	Due Diligence. XFM has completed its due diligence review of the
Group and is satisfied with the results thereof.
	 
	 	(c)	 	Performance. Each member of the Group shall have performed and
complied with all agreements, obligations and conditions contained in this Agreement,
the Ancillary Agreements that are required to be performed or complied with by it on
or before the Jiasen Closing or the date of payment.
	 
	 	(d)	 	No Material Adverse Change. There has not occurred any Material
Adverse Change in the Group’s business, financial condition, Assets or operations
since 31 July 2008.
	 
	 	(e)	 	Board Approval. XFM’s board of directors shall have authorized and
approved the execution and delivery of the Agreement and the Ancillary Agreements.
	 
	 	(f)	 	Equity Transfers. The Equity Transfers have been duly completed and
all documents required to be filed with or delivered to Governmental Entity have been
so filed or delivered.
	 
	 	(g)	 	Board Composition. All documents required to change the directors of
each member of the Group to nominees of XFM shall have been duly completed and signed
and, where applicable, filed, submitted to or registered with the relevant
Governmental Entity.
	 
	 	(h)	 	Licenses. All Licenses shall be valid and in full force and shall be
renewable solely by each member of the Group (as applicable) or its branch throughout
the period from 31 July 2008 to the Jiasen Closing Date or date of payment.
	 
	 	(i)	 	SDTC Equity Transfer. The SDTC Equity Transfer has been duly completed
and all consents, approvals, licences and permits required for the SDTC Equity
Transfer from all Governmental Entities have been duly obtained. The business
licence of SDTC reflecting the new shareholding of SDTC following

- 16 -

 

	 	 	 	the SDTC Equity Transfer and the notice from local Administration of Industry and Commerce
approving the change of registration of SDTC have been duly issued. All of the
consideration for the STDC Equity Transfer has been fully satisfied and there are
no outstanding claims from TJYX against SDTC or Jiasen.
	 
	 	(j)	 	Jiasen Liabilities. Immediately prior to the Jiasen Closing, Jiasen
has no liabilities or obligations in favour of any party save for the following:

	 	(a)	 	Ten Million Five Hundred Thousand Renminbi (RMB10,500,000) in
favour of SDTC provided always that if Jiasen is obliged to repay part or
whole of such debt to SDTC prior to the Jiasen Closing pursuant to the Jiasen
Cooperation Agreement and therefore it borrows the same amount from its
shareholders or other third parties, free of interest, for fulfilling the
repayment obligation, the liabilities or obligations relating to the amount
borrowed shall be in favour of the lending shareholders or third parties; and
	 
	 	(b)	 	Twenty-two Million Five Hundred Thousand Renminbi
(RMB22,500,000) in favour of its shareholders or other third parties.

	3.3A	 	Equity Interests in Jiasen. For the avoidance of doubt, XFM and/or XFM Nominee shall
have the right to transfer or otherwise dispose or deal with the equity interests in Jiasen
acquired by XFM Nominees following the Jiasen Closing as XFM shall determine at its sole
discretion.

			
	4.	 	ESTABLISHMENT OF JVs

	4.1	 	As soon as practicable following the execution of this Agreement, the Company shall procure
that four (4) joint venture companies be established in Tianjin in the PRC from the Jiasen
Closing Date in accordance with the following (unless otherwise expressly agreed to by XFM):

	 	(a)	 	Each JV shall be established with a registered capital of no less than There
Million Renminbi (RMB3,000,000);
	 
	 	(b)	 	The capital contribution to each JV shall be made in accordance with the
Jiasen Cooperation Agreement or such other agreements as may be entered into by XFM
VIE and SDTC;
	 
	 	(c)	 	XFM VIE shall be the Fifty five Per Cent (55%) shareholder and SDTC shall be
the Forty Five Per Cent (45%) shareholder of each JV.
	 
	 	(d)	 	Each JV shall be established as a PRC domestic limited liability company;
	 
	 	(e)	 	Each JV shall have a board of directors consisting of three (3) members. XFM
VIE shall be entitled to appoint two (2) directors and SDTC shall be entitled to
appoint one (1) director;

- 17 -

 

	 	(f)	 	The joint venture contract of each JV shall be duly completed and executed by
SDTC and XFM VIE in the form satisfactory to XFM;
	 
	 	(g)	 	Each JV shall have duly obtained the Television Programs Production Broadcast
Permit; and
	 
	 	(h)	 	Each JV shall have entered into the agreement with SDTC in the form
satisfactory to XFM under which SDTC authorises such JV to operate one of the Digital
Channels as designated by XFM.

	5.	 	JV CLOSING
	 
	5.1	 	JV Closing. Upon the JV Closing Conditions having been satisfied or waived (the “JV
Closing”), the Parties shall meet at the offices of XFM in Hong Kong or at such other place as
may be agreed upon by the Parties on the date that is immediately following confirmation from
XFM that the said conditions have been satisfied or waived. The date and time of the JV
Closing are herein referred to as the “JV Closing Date”. For greater certainty, XFM shall not
be obliged to pay any amount of the JV Closing Consideration unless all the JV Closing
Conditions are fulfilled or waived by XFM. Without prejudice to any other remedies available
to XFM, XFM may defer JV Closing and the payment of the JV Closing Consideration until all JV
Closing Conditions are fulfilled or waived.
	 
	5.2	 	Conditions to JV Closing. The obligations of XFM under this Agreement to pay the JV
Closing Consideration are subject to the satisfaction or waiver on or before the JV Closing
Date of all of the conditions and the delivery set out hereunder (collectively, the “JV
Closing Conditions”).
	 
	5.3	 	JV Closing Deliverables. Upon the JV Closing, the Vendor and the Covenantor shall
deliver or procure to be fulfilled or delivered to XFM the following documents:

	 	(a)	 	original of the joint venture contract duly executed by SDTC for establishment
of each of the JVs in a form satisfactory to XFM;
	 
	 	(b)	 	original of the articles of association of each of the JVs duly executed by
SDTC for establishment of the JVs in the form satisfactory to XFM;
	 
	 	(c)	 	all approval, licenses and certificates required for establishment of the JVs;
	 
	 	(d)	 	all corporate records of the JVs (including its company chop, seal, finance
chop and legal representative chop);
	 
	 	(e)	 	originals of duly completed and signed documents required for the appointment
of directors and legal representative of the JVs in the form satisfactory to XFM;
	 
	 	(f)	 	original of the duly completed and signed assignment agreements entered into
among Tianjin TV Station, SDTC and each of the JVs in form satisfactory to

- 18 -

 

	 	 	 	XFM, under which SDTC’s operation rights of each of the Digital Channels shall be
assigned exclusively to each of the respective JVs;

	 	(g)	 	original of the agreements between SDTC and each JV in form satisfactory to XFM
under which SDTC authorises such JV to operate one of the Digital Channels as
designated by XFM (collectively, the “JV Cooperation Agreements”);
	 
	 	(h)	 	originals of documents issued by competent Governmental Authority certifying
that two (2) of the Digital Channels designated by XFM have been repositioned as a
North American sports channel which is allowed to broadcast content relating to sports,
among others, in North American and a “fighting channel” which is allowed to broadcast
content relating to fighting including, but not limited to, boxing and martial arts,
respectively, in form and substance satisfactory to XFM;
	 
	 	(i)	 	original documents and agreements duly completed and signed as required by XFM
for the appointment of such person(s) as designated by XFM to be the director(s) and
legal representative of each JV;
	 
	 	(j)	 	originals of duly completed and executed documents required for the appointment
of bank account signatories of all bank accounts of each JV to such person as
designated by XFM;
	 
	 	(k)	 	written confirmation from the Vendor that it is not aware of any matter or
thing which is in breach of or inconsistent with any of the representations, warranties
and undertakings herein contained;
	 
	 	(l)	 	such other papers and documents as XFM may reasonably require for the purposes
herein, including but not limited to, all documents required to be signed, submitted to
and/or registered with to any Governmental Entity; and
	 
	 	(m)	 	such other papers and documents as XFM may reasonably require.

	5.4	 	Other JV Closing Conditions. The obligations of XFM under this Agreement to pay the
JV Closing Consideration are subject to the satisfaction or waiver on or before the Relevant
Date of each of the following:

	 	(a)	 	Representations and Warranties. All representations and warranties
shall be true on and as of the JV Closing or the date of payment with the same effect
as though such representations and warranties had been made on and at such date.
	 
	 	(b)	 	Performance. Each member of the Group shall have performed and
complied with all agreements, obligations and conditions contained in this Agreement,
the Ancillary Agreements that are required to be performed or complied with by it on or
before the JV Closing or the date of payment.

- 19 -

 

	 	(c)	 	No Material Adverse Change. There has not occurred any Material
Adverse Change in the Group’s business, financial condition, Assets or operations since
31 July 2008.
	 
	 	(d)	 	Licenses. All Licenses shall be valid and in full force and shall be
renewable solely by each member of the Group (as applicable) or its branch throughout
the period from 31 July 2008 to the JV Closing Date or date of payment.
	 
	 	(e)	 	Tianjin TV Station Rights. All related rights granted in favour of
SDTC by Tianjin TV Station including, but not limited to, all such rights and benefits
granted to SDTC under the Jiasen Cooperation Agreement, have been duly transferred or
assigned to each of the JVs to the satisfaction of XFM and in accordance with the JV
Cooperation Agreements and all documents required for the foregoing purposes have been
completed and signed and, where applicable, filed with the relevant Government Entity.
	 
	 	(f)	 	Directors and Legal Representative. Such persons as designated by XFM
have been duly appointed as directors and legal representative of each JV and all
documents required for such purposes have been completed and signed and, where
applicable, filed with the relevant Government Entity.

	6.	 	DEFRERAL OF CLOSING
	 
	6.1	 	Deferral of Closing. Without prejudice to any other remedies available to XFM, if any
provision of Clause 3 and/or 5 has not been complied with by the Vendor or the Covenantor on
the Jiasen Closing Date and/or JV Closing Date, XFM may:

	 	(a)	 	proceed to the Closing so far as practicable (without prejudice to its rights
hereunder); or
	 
	 	(b)	 	rescind its obligations to purchase the interests in the Company Shares and the
Equity Interests under this Agreement without prejudice to any other remedy and without
incurring any liability to the Vendor, the Covenantor or the Company.

	6.2	 	Without prejudice to any other remedies available to the Parties, if the Jiasen Closing
Conditions have not been satisfied within sixty (60) days following the execution of this
Agreement, XFM may rescind its obligations to purchase the Company Shares and the Equity
Interests and the Vendor shall, and the Covenantor shall procure the Vendor to, return all
payments it has then received from XFM under this Agreement to XFM within fifteen (15) days
following the rescission together with an interest calculated at an interest rate of twelve
per cent (12%) per annum.
	 
	6.3	 	Without prejudice to any other remedies available to the Parties, if the JV Closing
Conditions have not been satisfied within one hundred and twenty (120) days following the
Jiasen Closing Date, XFM shall be entitled to rescind its and/or XFM VIE’s obligations to
invest into the JV. The Vendor and the Covenantors shall compensate XFM with an amount equal
to the capital XFM VIE already contributed

- 20 -

 

	 	 	into the JV together with an interest calculated at an interest rate of twelve per cent (12)% per annum as XFM’s liquidated damage within fifteen (15) days following the rescission.

	7.	 	COVENANTS
	 
	7.1	 	Further Covenants. The Vendor and the Covenantor hereby jointly and severally
irrevocably covenant and undertake to XFM to execute and deliver and procure the due execution
and delivery of all such further documents required to be signed by the Vendor, the Covenantor
or members of the Group as are necessary to vest in XFM or the XFM Nominee all such property
and rights as are intended to be vested in them by or pursuant to this Agreement. Each of the
signing parties shall bear the expenses incurred by it.
	 
	7.2	 	Directors. Each of the parties hereto shall do and shall procure to be done all
actions necessary to ensure that the directors of the Group shall be such persons nominated by
XFM as stipulated in this Agreement.
	 
	7.3	 	Limitation on Transfer of Interests. Prior to Jiasen Closing Date, none of the
parties to this Agreement shall sell, give, assign, hypothecate, pledge, encumber, grant a
security interest in or otherwise dispose of (whether by operation of law or otherwise) (each
a “transfer”) any Company Shares, Equity Interests, interests in any of the Group or any
right, title or interest in or to any of them except in connection with fundraising activities
of XFM and in accordance with the memorandum and articles of association of the respective
company, as applicable, and any attempt to transfer any Company Shares or Equity Interests,
interests in any of the Group or any right, title or interest in or to any of them in
violation of the preceding sentence shall be null and void ab initio.
	 
	7.4	 	Capital Contribution to JV. The Vendor and the Covenantor jointly and severally
covenants to cause SDTC to provide capital contribution to each JV as required by XFM in
accordance with the laws and regulations of the PRC.
	 
	7.5	 	JVs. The Vendor and the Covenantor jointly and severally irrevocably covenant and
undertake to XFM to execute and deliver and procure the due execution and delivery of all such
further documents required to be signed by the Vendor, the Covenantor or members of the Group
and do to all such things as are necessary to establish the JVs.
	 
	8.	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE VENDOR AND THE COVENANTOR
	 
	8.1	 	The Vendor and the Covenantor hereby jointly and severally represent and warrant and covenant
to XFM that all the statements set out under Schedule D are true and correct as of the date
hereof and as at Jiasen Closing. The Vendor and the Covenantor hereby jointly and severally
further represent and warrant and covenant to XFM that all the statements set out under
Schedule E are true and correct as at JV Closing.

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	9.	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF XFM
	 
	 	 	XFM hereby represents, warrants and covenants to the Vendor that each of the following
statements is true as at the date hereof and at Jiasen Closing:
	 
	9.1	 	Organisation and Qualification. It is a person or a legal entity duly organised and
validly existing under the laws of its jurisdiction of incorporation.
	 
	9.2	 	Authorisation. It has taken all corporate or other action required to authorise, and
has duly authorised, the execution, delivery and performance of this Agreement and upon due
execution and delivery the same will constitute its legal, valid and binding obligations
enforceable in accordance with its terms.
	 
	9.3	 	Power and Authority. It has full power and authority to make the covenants and
representations referred to herein and to purchase the Company Shares and to execute, deliver
and perform this Agreement. It has the capacity to pay (or issue) the Total Consideration and
other payment as provided in this Agreement to the Vendor.
	 
	9.4	 	Compliance with Laws and Other Instruments. It holds, and at all times has held all
licenses, permits, and authorizations from all governmental entities necessary for the lawful
conduct of its business pursuant to all applicable statutes, laws, ordinances, rules, and
regulations of all such authorities having jurisdiction over it or any part of its operations.
There are no violations or claimed violations of any such license, permit, or authorization,
or any such statute, law, ordinance, rule or regulation.
	 
	9.5	 	Corporate Governance. Neither the execution and delivery of this Agreement and
Ancillary Agreements nor the performance by it of its obligations under this Agreement and
Ancillary Agreements will (i) conflict with or result in any breach of its charter documents;
(ii) require any Consents by Governmental Entity, (iii) conflict with, result in a breach or
default of, or give rise to any right of termination, cancellation or acceleration or result
in the creation of any lien, charge, encumbrance, or restriction upon any of the properties or
Assets of it or its shares under, any law, statute, rule, regulation, judgment, decree, order,
government permit, license or order or any mortgage, indenture, note, license, trust,
agreement or other agreement, instrument or obligation to which it is a party.

	10.	 	INDEMNITY
	 
	10.1	 	Indemnity of XFM. The Vendor and the Covenantor shall jointly and severally
indemnify and will keep indemnified and save harmless XFM and its nominees from and against
the following (collectively, the “Losses”):

	 	(a)	 	any and all losses, claims, damages (including damages, interest, penalties,
fines and monetary sanctions) liabilities and costs incurred or suffered by XFM or its
nominees by reason of, resulting from, in connection with, or arising in any manner
whatsoever out of the breach of any warranty,

- 22 -

 

	 	 	 	representation or covenant given hereunder or the inaccuracy of any representation given hereunder in respect of any
member of the Group contained or referred to in this Agreement in connection therewith provided that the
indemnity contained in this Clause shall be without prejudice to any other rights
and remedies available to XFM;

	 	(b)	 	any and all losses, claims, damages liabilities and costs incurred or suffered
by any member of the Group by reason of, resulting from, in connection with, or arising
in any manner whatsoever out of or from any action, inaction or omission prior to
Jiasen Closing Date including, but not limited to, any diminution in the value of the
Assets of any of the member of the Group and any payment made or required to be made by
the member of the Group and any costs and expenses incurred as a result of such breach
provided that the indemnity contained in this Clause shall be without prejudice to any
other rights and remedies available to XFM; or
	 
	 	(c)	 	any loss, claim, liability, expense, or other damage attributable to:

	 	(i)	 	any and all taxes (or the non-payment thereof) of any member of
the Group or the Company or any subsidiary of the Company for all taxable
periods ending on or before the Jiasen Closing Date (“Pre-Closing Tax Period”);
	 
	 	(ii)	 	all taxes of any member of an affiliated, consolidated,
combined or unitary group of which any member of the Group (or any predecessor
of any of the foregoing) is or was a member on or prior to the Jiasen Closing
Date; and
	 
	 	(iii)	 	any and all taxes of any person (other than any member of the
Group) imposed on any member of the Group as a transferee or successor, by
contract or pursuant to any law, rule, or regulation, which taxes relate to an
event or transaction occurring before the Jiasen Closing.

	10.2	 	Tax Matters.

	 	(a)	 	Payment in full of any amount due from the Vendor or the Covenantor under this
Clause shall be made to XFM in immediately available funds at least two (2) Business
Days before the date payment of the taxes to which such payment relates is due, or, if
no tax is payable, within fifteen days after written demand is made for such payment.
	 
	 	(b)	 	Notwithstanding the foregoing, XFM shall provide the Vendor with reasonably
prompt written notice of any proposed tax adjustment that may give rise to the Vendor’s
or the Covenantor’s indemnification obligation hereunder and shall cooperate with the
Vendor and permit the Vendor to participate, at its own expense, in the audit or other
proceeding. Notwithstanding the preceding sentence, in the event that the Vendor wants
to accept a proposed settlement of a tax claim for which they have an indemnity

- 23 -

 

	 	 	 	obligation pursuant to this Clause (the “Tax Settlement Option”) and XFM determines
that it prefers to pursue the tax claim further, XFM may pursue the tax claim without
the participation of Vendor.
	 
	 	(c)	 	In the case of any taxable period that ends on or before the Jiasen Closing
Date (a “Straddle Period”), the amount of any taxes based on or measured by income or
receipts of the Group or any member thereof for the Pre-Closing Tax Period shall be
determined based on an interim closing of the books as of the close of business on the
Jiasen Closing Date, and the amount of other taxes of the Group for a Straddle Period
which relate to the Pre-Closing Tax Period shall be deemed to be the amount of such tax
for the entire taxable period multiplied by a fraction the numerator of which is the
number of days in the taxable period ending on the Jiasen Closing Date and the
denominator of which is the number of days in such Straddle Period.

	10.3	 	Costs. For the purposes of this Clause, “costs” includes reasonable lawyers’ and
accountants’ fees and expenses, court costs and all other out-of-pocket expenses.
	 
	10.4	 	Survival of Warranties and Indemnity. The representations and warranties of the
Vendor and the Covenantor to this Agreement given under this Agreement shall survive Jiasen
Closing.
	 
	10.5	 	Third Party Claims.

	 	(a)	 	A party entitled to indemnification hereunder (an “Indemnified Party”) shall
notify promptly the indemnifying party (the “Indemnifying Party”) in writing of the
commencement of any action or proceeding with respect to which a claim for
indemnification may be made pursuant to this Agreement.
	 
	 	(b)	 	In case any claim, action or proceeding is brought against an Indemnified Party
and the Indemnified Party notifies the Indemnifying Party in writing of the
commencement thereof, the Indemnifying Party shall be entitled to participate therein
and to assume the defense thereof, to the extent that it chooses, with counsel
reasonably satisfactory to such Indemnified Party, and after notice from the
Indemnifying Party to such Indemnified Party that it so chooses, the Indemnifying Party
shall not be liable to such Indemnified Party for any legal or other expenses
subsequently incurred by such Indemnified Party in connection with the defense thereof
other than reasonable costs of investigation; provided, however, that:

	 	(i)	 	if the Indemnifying Party fails to take reasonable steps
necessary to defend diligently the action or proceeding within twenty (20)
calendar days after receiving notice from such Indemnified Party that the
Indemnified Party reasonably believes it has failed to do so; or
	 
	 	(ii)	 	if such Indemnified Party who is a defendant in any claim or
proceeding which is also brought against the Indemnifying Party reasonably
shall have concluded that there may be one or more legal

- 24 -

 

	 	 	 	defenses available to such Indemnified Party which are not available to the Indemnifying Party; or
	 
	 	(iii)	 	if representation of both parties by the same counsel is
otherwise inappropriate under applicable standards of professional conduct,

	 	 	 	then, in any such case, the Indemnified Party shall have the right to assume or
continue its own defense as set forth above (but with no more than one firm of
counsel for all Indemnified Parties in each jurisdiction), and the Indemnifying
Party shall be liable for any expenses therefor.

	10.6	 	Settlement of Claims.

	 	(a)	 	No Indemnifying Party shall, without the written consent of the Indemnified
Party, effect the settlement or compromise of, or consent to the entry of any judgment
with respect to, any pending or threatened action or claim in respect of which
indemnification may be sought hereunder (whether or not the Indemnified Party is an
actual or potential party to such action or claim) unless such settlement, compromise
or judgment:

	 	(i)	 	includes an unconditional release of the Indemnified Party from
all liability arising out of such action or claim;
	 
	 	(ii)	 	does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of any Indemnified Party; and
	 
	 	(iii)	 	does not include any injunctive or other non-monetary relief.

	 	(b)	 	the Indemnified Party may, in its sole discretion, offset against any payment
any Losses incurred or suffered by the Indemnifying Party and for which the
Indemnifying Party is entitled to be indemnified in this Agreement.

	11.	 	TERMINATION
	 
	11.1	 	Termination. This Agreement may be terminated at any time prior to the Jiasen
Closing:

	 	(a)	 	by XFM if, between the date hereof and the Jiasen Closing Date:

	 	(i)	 	there is a Material Adverse Change caused by the Vendor’s or
the Covenantor’s breach of any provision of this Agreement or the Ancillary
Agreements;
	 
	 	(ii)	 	any representations and warranties made by the Vendor and the
Covenantor as contained in this Agreement shall not have been

- 25 -

 

	 	 	 	materially true and correct when made;
	 
	 	(iii)	 	the Vendor or the Covenantor shall not have complied in all
material respects with the covenants or agreements contained in this Agreement to be complied with by it; or
	 
	 	(iv)	 	member of the Group who makes a general assignment for the
benefit of creditors, or any proceeding shall be instituted by or against the
company seeking to adjudicate it bankrupt or insolvent, or seeking liquidation,
winding up or reorganization, arrangement, adjustment, protection, relief or
composition of its debts under any law related to bankruptcy, insolvency or
reorganization.

	 	 	 	In event of the termination under this Clause 11.1(a), without prejudice to any
other remedies available to the Parties, the Vendor shall and the Covenantor shall
procure the Vendor to return all payments it has then received from XFM under this
Agreement to XFM within fifteen (15) days following the termination together with
interest calculated at an interest rate of twelve per cent (12%) per annum.
	 
	 	(b)	 	by the Vendor if, between the date hereof and the Jiasen Closing Date:

	 	(i)	 	any representations and warranties made by XFM contained in
this Agreement shall not have been materially true and correct;
	 
	 	(ii)	 	XFM shall not have complied in all material respects with the
covenants or agreements contained in this Agreement to be complied with by it;
or
	 
	 	(iii)	 	XFM makes a general assignment for the benefit of creditors,
or any proceeding shall be instituted by or against XFM seeking to adjudicate
XFM in question bankrupt or insolvent, or seeking liquidation, winding up or
reorganization, arrangement, adjustment, protection, relief or composition of
its debts under any law related to bankruptcy, insolvency or reorganization;

	 	 	 	In event of the termination under this Clause 11.1(b), the Vendor shall and the
Covenantor shall procure the Vendor to return all payments it has then received from
XFM under this Agreement to XFM within fifteen (15) days following the termination.
	 
	 	(c)	 	by XFM or the Vendor in the event that any competent governmental authority in
the PRC shall have issued an order, decree or ruling or taken any other action
restraining, enjoining or otherwise prohibiting the transactions contemplated by this
Agreement or the proposed business and operation of the Group; or
	 
	 	(d)	 	by the written consent of XFM and the Vendor.

- 26 -

 

	 	 	In event of the termination under Clauses 11.1(c) and (d), the Vendor shall and the
Covenantor shall procure the Vendor to return all payments it has then received from XFM
under this Agreement to XFM within fifteen (15) days following the termination.
	 
	10.2	 	Effect of Termination. In the event of termination of this Agreement as provided in
Clause 10.1, this Agreement shall forthwith become void provided that nothing herein shall
relieve any party hereto from liability for any breach of this Agreement.
	 
	12.	 	CONFIDENTIALITY AND NON-DISCLOSURE
	 
	12.1	 	Non-Disclosure of Terms. The terms and conditions of this Agreement and the
Ancillary Agreements, including their existence, shall be considered confidential information
and shall not be disclosed by any party hereto to any third party except in accordance with
the provisions set forth below provided that such confidential information shall not include
any information that is in the public domain other than by the breach of the confidentiality
obligations hereunder.
	 
	12.2	 	Press Releases, Etc. Any press release issued by any party hereto or any member of
the Group in relation to this Agreement shall be approved in advance in writing by the each
Party to this Agreement, whose consent shall not be unreasonably withheld. No other
announcement regarding any of the terms set forth in this Agreement in a press release,
conference, advertisement, announcement, professional or trade publication, mass marketing
materials or otherwise to the general public may be made without the prior written consent of
each Party to this Agreement, whose consent shall not be unreasonably withheld.
	 
	12.3	 	Permitted Disclosures. Notwithstanding the foregoing, any party may disclose any of
the terms set forth in this Agreement (i) to its current or bona fide, employees, bankers,
lenders, partners, accountants and attorneys and other professional advisers, in each case
only where such persons or entities are under appropriate non-disclosure obligations; or (ii)
as may be required by law or the rules and regulations of any stock exchange.
	 
	12.4	 	Other Information. The provisions of this Clause shall be in addition to, and not in
substitution for, the provisions of any separate nondisclosure agreement executed by any of
the parties hereto with respect to the transactions contemplated hereby.
	 
	13.	 	MISCELLANEOUS
	 
	13.1	 	Successors and Assigns. Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their respective successors
and assigns any rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.

- 27 -

 

	13.2	 	Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of Hong Kong.
	 
	13.3	 	Arbitration. Any dispute, controversy or claim arising out of or relating to this
Agreement, or the breach, termination or invalidity thereof, shall be settled by binding arbitration in accordance with the UNCITRAL Arbitration Rules as present in force
in the manner set forth in this Clause:

	 	(a)	 	The procedures of this Clause may be initiated by a written notice (a
“Dispute Notice”) given by one party (a “Claimant”) to the other, but not before
thirty (30) days have passed during which the parties have been unable to reach a
resolution. The Dispute Notice shall be accompanied by (i) a statement of the
Claimant describing the dispute in reasonable detail and (ii) documentation, if any,
supporting the Claimant’s position on the dispute. Within twenty (20) days after the
other party’s (the “Respondent”) receipt of the Dispute Notice and accompanying
materials, the dispute shall be resolved by binding arbitration in Hong Kong under
the UNCITRAL Arbitration Rules. All arbitration procedures pursuant to this paragraph
(a) shall be confidential and treated as compromise and settlement negotiations and
shall not be admissible in any arbitration or other proceeding.
	 
	 	(b)	 	The parties shall agree on a single arbitrator to resolve the dispute. If the
Parties fail to agree on the designation of an arbitrator within a twenty (20)-day
period the Hong Kong International Arbitration Centre shall be requested to designate
the single arbitrator. If the arbitrator becomes disabled, resigns or is otherwise
unable to discharge the arbitrator’s duties, the arbitrator’s successor shall be
appointed in the same manner as the arbitrator was appointed.
	 
	 	(c)	 	Any award arising out of arbitration (i) shall be binding and conclusive upon
the parties; (ii) shall be limited to a holding for or against a party, and affording
such monetary remedy as is deemed equitable, just and within the scope of this
Agreement; (iii) may not include special, indirect, incidental, consequential,
special, punitive or exemplary damages or diminution in value; (iv) may in
appropriate circumstances include injunctive relief; and (v) may be entered in a
court.
	 
	 	(d)	 	Arbitration shall not be deemed a waiver of any right of termination under
this Agreement, and the arbitrator is not empowered to act or make any award other
than based solely on the rights and obligations of the parties prior to termination
in accordance with this Agreement.
	 
	 	(e)	 	The arbitrator may not limit, expand or otherwise modify the terms of this
Agreement.
	 
	 	(f)	 	Each party shall bear its own expenses incurred in any arbitration or
litigation, but any expenses related to the compensation and the costs of the
arbitrator shall be borne equally by the parties to the dispute.

- 28 -

 

	 	(g)	 	If any action or proceeding is commenced to construe or enforce this
Agreement or the rights and duties of the parties hereunder, then the party
prevailing in that action, and any appeal thereof, shall be entitled to recover its
attorney’s fees and costs in that action or proceeding, as well as all costs and fees of any appeal or action to enforce any judgment entered in connection
therewith.

	13.4	 	Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.
	 
	13.5	 	Titles and Subtitles. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement.
	 
	13.6	 	Notices. Unless otherwise provided, any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given upon personal
delivery to the party to be notified or upon postal service delivery, by registered or
certified mail, postage prepaid and addressed to the party to be notified at the address
indicated for such party on the signature page hereof or by facsimile at the facsimile number
set forth on the signature page hereof, or at such other address or facsimile number as such
party may designate by ten (10) days’ advance written notice to the other parties.
	 
	13.7	 	Expenses. Each of the parties hereto shall be responsible for its own costs and
expenses incurred in the preparation, negotiation and execution of this Agreement.
	 
	13.8	 	Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and
the balance of the Agreement shall be interpreted as if such provision was so excluded and
shall be enforceable in accordance with its terms.
	 
	13.9	 	Language. This Agreement shall be executed in English.

- 29 -

 

EXECUTION

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

	 	 	 	 	 
	The Purchaser

For and on behalf of Xinhua Finance Media Limited

 	 	 
	By:  	 	 	 
	 	 	 	 
	/s/ Fredy Bush 	 	 
	 	 	 	 
	Name:  	Fredy Bush 	 	 
	 	 	 	 
	Title:  	Director 	 	 
	 	 	 	 
	Address of XFM: 	 	 
	 	 	 	 
	Rm 2201, 22/F, Tower D, Central International Trade Center,
6A JianWai Avenue,
Chaoyang District, Beijing 100022, China 	 	 
	 	 	 	 
	 	 	 	 
	Telephone:  	8610 8567 6000 	 	 
	 	 	 	 
	Facsimile:  	8610 8567 6074 	 	 

 

 

	 	 	 	 	 
	The Vendor

For and on behalf of Prime Day Management Limited

 	 	 
	By:  	/s/ Ge Zhijun
 	 	 
	 
	 
	Name:  	Ge Zhijun 	 	 
	 
	Title:  	Director 	 	 
	 
	Address of the Company: 	 	 
	Rooms 1910-1913, Hutchison House, 10 Harcourt Road, Central, Hong Kong 
	 
	 
	Telephone:  	 	 	 
	 
	Facsimile:  	 	 	 
	 
	 
	 
	 
	The Company

For and on behalf of Starease Limited

 	 	 
	By:  	/s/ Ge Zhijun
 	 	 
	 
	 
	Name:  	Ge Zhijun 	 	 
	 
	Title:  	Director 	 	 
	 
	Address of the company: 	 	 
	Rooms 1910-1913, Hutchison House, 10 Harcourt Road, Central, Hong Kong 
	 
	 
	Telephone:  	 	 	 
	 
	Facsimile:  	 	 	 

 

 

	 	 	 	 	 
	The Covenantor

 	 	 
	By:  	Ge Zhijun
 	 	 
	 
	 	/s/ Ge Zhijun 	 	 
	 
	 
	Address: 	 	 
	Room 1110, Block 1, Wanke City Garden, Xinxing Road,

Heping District, Tianjin, People’s Republic of China 	 	 
	 
	Telephone: 	 	 	 
	 
	Facsimile: 	 	 	 

 

 

Schedule A

Details of Company Shares

	 	 	 	 	 
	Purchaser	 	Vendor	 	No. of Company

Shares
	 
	 	 	 	 
	Xinhua Finance Media Limited
	 	GE Zhijun	 	100

 

 

Schedule B

Corporate Details of the Group as at the date of signing of this Agreement

A. The Company

	 	 	 	 	 
	Name
	 	Starease Limited	 	 
	 
	Date and Place of Incorporation	 	18 August 2008, British Virgin Islands
	 
	Incorporation Number
	 	1499637	 	 
	 
	Registered Address	 	P.O. Box 957, Offshore Incorporations Centre,
Road Town, Tortola, British Virgin Islands
	 
	Authorized Capital	 	US$50,000 divided into 50,000 shares with a
par value of US$1
	 
	Issued Capital
	 	One (1) share	 	 
	 
	Shareholder
	 	Name	 	Number of
	 
	 	 	 	Ordinary Shares
	 
	 	Prime Day Management Limited	 	One (1)
	 
	 	Total:	 	One (1)
	 
	Director(s)
	 	Ge Zhijun	 	 
	 
	Company Secretary	 	DSC (Corporate Services) Limited

B. CMN

	 	 	 	 	 
	Name	 	China Media Network Limited

()
	 
	Date and Place of Incorporation	 	5 October 2007, Hong Kong
	 
	Incorporation Number
	 	1173165	 	 
	 
	Registered Address	 	Rooms 1910-1913, Hutchison House, 10 Harcourt Road, Central, Hong Kong
	 
	Registered Capital	 	HK$10,000 divided into 10,000 shares of
HK$1 each
	 
	Issued Capital
	 	One (1) share	 	 
	 
	Shareholder
	 	Name	 	Number of
Ordinary Shares
	 
	 	Starease Limited	 	One (1)
	 
	 	Total:	 	One (1)
	 
	Director(s)
	 	Ge Zhijun	 	 
	 
	Company Secretary	 	DSC (Corporate Services) Limited

 

 

C. HBLD

	 	 	 	 	 
	Name	 	Shenzhen Hai Bei Lei Di Business
Consulting Co., Ltd.

()
	 
	Date and Place of Incorporation
	 	31 March 2008, PRC	 	 
	 
	Registration number
	 	440301503298392	 	 
	 
	Registered Address	 	No.629, West of the Sixth Floor of Honggui
Apartment, No. 2068 Honggui Road, Luohu
District, Shenzhen, PRC
	 
	Registered Capital
	 	HKD500,000	 	 
	 
	Shareholder
	 	Name	 	Shareholding
	 
	 
	 	China Media Network Limited	 	HKD500,000
(100%)
	 
	 	Total:	 	HKD500,000
	 
	Legal Representative
	 	Zhang Xian	 	 
	 
	Business Scope	 	Business information consulting,
investment advisory, marketing plan and
technology information consulting (Not
including security advisory, personnel
intermediary services and other restricted
items)
	 
	Business term	 	31 March 2008 to 31 March 2038

 

 

D. Jiasen

	 	 	 	 	 
	Name	 	
	 	 	(Shanghai Jiasen Advertising Co., Ltd)
	 
	Date and Place of Incorporation
	 	17 July 2008, PRC	 	 
	 
	Registration number	 	310107000539336
	 
	Registered Address	 	Room 108, Building 2, No.188, Lane 1035,
Qilianshan Road, Putuo District, Shanghai
	 
	Registered Capital
	 	RMB 100,000	 	 
	 
	Shareholder
	 	Name	 	Shareholding
	 
	 
	 	Zhou Kaidian	 	RMB100,000
(100%)
	 
	 	Total:	 	RMB100,000
	 
	Legal Representative
	 	Zhou Kaidian	 	 
	 
	Business Scope	 	To design, produce and release
advertisement; to act as an advertising
agent; exhibition services; to sale
educational supplies (a license needed for
those involved administrative license).
	 
	Business term	 	17 July 2008 to 16 July 2018

E. SDTC

	 	 	 	 	 
	Name	 	

(Tianjin Shidai Tianchuang Co. Ltd.)
	 
	Date and Place of Incorporation
	 	11 August 2004, PRC	 	 
	 
	Registered Address	 	No.8 Xinghua 7th Branch Road, Xiqing
Econimic Development Zone, Tianjin, PRC
	 
	Registered Capital
	 	RMB 55,000,000	 	 
	 
	Shareholder
	 	Name	 	Shareholding
	 
	 
	 	Tianjin TV Station	 	RMB 28,050,000
(51%)
	 
	 	Tianjin Rong Chuang Real Estate Development Co., Ltd.
()	 	RMB 26,950,000
(49%)
	 
	 	Total:	 	RMB50,000,000

 

 

	 	 	 	 	 
	Legal Representative	 	Wan Ke
	 
	Directors & Supervisors
	 	Directors	 	 
	 	 	Wan Ke, Sun Hongbin, Gao Guiqin, Zhang Ying, Kong
Lingquan, Zhang Xuesong, Chen Hengliu
	 
	 	Supervisors	 	 
	 	 	Jing Lifang, Wang Jin, Sun Tielin
	 
	Business Scope	 	Radio and Television Program Production (production
of Teleplay, Special Topic, Arts, Cartoon etc.) (to
operate according to the radio and television
program production license, expiration date to 1
April, 2009); to utilize digital channels to provide
users with paid services; advertising; Meeting
services; wholesale and retail of stationery,
communication equipment (excluding cell phone,
pager) and network equipment; network and system
debugging and installation (the foregoing scope of
businesses are subject to special franchise
provisions ordained by the country).
	 
	Business term	 	11 August 2004 to 10 August 2019

 

 

Schedule C

Corporate Details of the Group immediately following Jiasen Closing Date

A. The Company

	 	 	 	 	 
	Name
	 	Starease Limited	 	 
	 
	Date and Place of Incorporation	 	18 August 2008, British Virgin Islands
	 
	Incorporation Number
	 	1499637	 	 
	 
	Registered Address	 	P.O. Box 957, Offshore Incorporations Centre,
Road Town, Tortola, British Virgin Islands
	 
	Authorized Capital	 	US$50,000 divided into 50,000 shares with a par
value of US$1
	 
	Issued Capital
	 	One (1) share	 	 
	 
	Shareholder
	 	Name	 	Number of
Ordinary Shares
	 
	 
	 	Xinhua Finance Media Limited	 	One (1)
	 
	 
	 	Total:	 	One (1)
	 
	Director(s)
	 	XFM Nominee	 	 
	 
	Company Secretary
	 	XFM Nominee	 	 

B. CMN

	 	 	 	 	 
	Name	 	China Media Network Limited
	 
	Date and Place of
Incorporation	 	5 October 2007, Hong Kong
	 
	Incorporation Number
	 	1173165	 	 
	 
	Registered Address	 	Rooms 1910-1913, Hutchison House, 10 Harcourt
Road, Central, Hong Kong
	 
	Registered Capital	 	HK$10,000 divided into 10,000 shares of HK$1
each
	 
	Issued Capital
	 	One (1) share	 	 

 

 

	 	 	 	 	 
	Shareholder
	 	Name	 	Number of
Ordinary Shares
	 
	 
	 	Starease Limited	 	One (1)
	 
	 	Total:	 	One (1)
	 
	Director(s)
	 	XFM Nominee	 	 
	 
	Company Secretary
	 	XFM Nominee	 	 

C. HBLD

	 	 	 	 	 
	Name	 	Shenzhen Hai Bei Lei Di Business Consulting
Co., Ltd. 
()
	 
	Date and Place of Incorporation
	 	31 March, 2008	 	 
	 
	Registration number
	 	440301503298392	 	 
	 
	Registered Address	 	No.629, West of the Sixth Floor of Honggui
Apartment, No. 2068 Honggui Road, Luohu
District, Shenzhen, PRC
	 
	Registered Capital
	 	HKD500,000	 	 
	 
	Shareholder
	 	Name	 	Shareholding
	 
	 
	 	China Media Network Limited	 	HKD500,000
(100%)
	 
	 	Total:	 	HKD500,000
	 
	Legal Representative
	 	XFM Nominee	 	 
	 
	Executive Director & Supervisor
	 	XFM Nominee	 	 
	 
	Business Scope	 	Business information consulting, investment
advisory, marketing plan and technology
information consulting (Not including security
advisory, personnel intermediary services and
other restricted items)
	 
	Business term
	 	31 March 2008 to 31 March 2038

 

 

D. Jiasen

	 	 	 	 	 
	Name	 	

(Shanghai Jiasen Advertising Co., Ltd)
	 
	Date and Place of Incorporation
	 	17 July 2008	 	 
	 
	Registration number
	 	310107000539336	 	 
	 
	Registered Address	 	Room 108, Building 2, No.188, Lane 1035,
Qilianshan Road, Putuo District, Shanghai
	 
	Registered Capital
	 	RMB 100,000	 	 
	 
	Shareholder
	 	Name	 	Shareholding
	 
	 
	 	XFM Nominee	 	RMB100,000
(100%)
	 
	 	Total:	 	RMB100,000
	 
	Legal Representative
	 	XFM Nominee	 	 
	 
	Executive Director
	 	XFM Nominee	 	 
	 
	Business Scope	 	To design, produce and release
advertisement; to act as an advertising
agent; exhibition services; to sale
educational supplies (a license needed for
those involved administrative license).
	 
	Business term	 	17 July 2008 to 16 July 2018

E. SDTC

	 	 	 	 	 
	Name	 	

(Tianjin Shidai Tianchuang Co. Ltd.)
	 
	Date and Place of Incorporation
	 	11 August 2004	 	 
	 
	Registered Address	 	No.8 Xinghua 7th Branch Road, Xiqing
Economic Development Zone, Tianjin
	 
	Registered Capital
	 	RMB 55,000,000	 	 
	 
	Shareholder
	 	Name	 	Shareholding
	 
	 
	 	Tianjin TV Station	 	RMB28,050,00
(51%)
	 
	 	
(Shanghai Jiasen Advertising Co., Ltd) 	 	RMB 26,950,000 (49%)
	 
	 
	 	Total:	 	RMB50,000,000

 

 

	 	 	 	 	 
	Legal Representative
	 	Wan Ke	 	 
	 
	Directors & Supervisors
	 	Directors	 	 
	 	 	Wan Ke, Gao Keming, Kong Lingquan, Zhu Shan, Hu Ping
	 
	 	Supervisors	 	 
	 	 	Jing Linfang, Wan Li, Ge Zhijun
	 
	Business Scope	 	Radio and Television Program Production
(production of Teleplay, Special Topic, Arts,
Cartoon etc.) (to operate according to the
radio and television program production
license, expiration date to 1 April, 2009); to
utilize digital channels to provide users with
paid services; advertising; Meeting services;
Wholesale and retail of stationery,
communication equipment (excluding cell phone,
pager) and network equipments network and
system debugging and installation (the
foregoing scope of businesses shall be subject
to special franchise provisions ordained by the
country).
	 
	Business term	 	11 August 2004 to 10 August 2019

 

 

Schedule D

Jiasen Closing Representations and Warranties

	1.1	 	The Company. In respect of the Company and CMN:

	 	(a)	 	Organization, Standing, and Power. It is a company duly organized,
validly existing, and in good standing under the laws of British Virgin Islands (in
the case of the Company) and Hong Kong (in the case of CMN), has all requisite
corporate power and authority to carry on its businesses, and is duly qualified and in
good standing to do business in each jurisdiction in which it conducts business. It
has made available to XFM complete and correct copies of its articles of
incorporation, bylaws, registers and/or other organizational documents, in each case,
as amended to the date hereof (collectively, the “Company Charter Documents”).
	 
	 	(b)	 	Corporate Records. Its minute books and corporate records, complete
and correct copies of which have been made available to XFM, contain correct and
complete records of all proceedings and actions taken at all meetings of, or effected
by written consent of its shareholders and its board of directors and all original
issuances and subsequent transfers, repurchases, and cancellations of its shares.
	 
	 	(c)	 	Capital Structure.

	 	(i)	 	Immediately prior to and following the Jiasen Closing Date
its issued share capital will be as set forth in Schedule B and Schedule C,
respectively.
	 
	 	(ii)	 	There are no options, warrants, calls, conversion rights,
commitments, agreements, contracts, restrictions, or rights of any character
to which it is a party or by which it may be bound obligating company to
issue, deliver or sell, or cause to be issued, delivered or sold, additional
shares, or obligating it to grant, extend or enter into any such option,
warrant, call, conversion right, commitment, agreement, contract,
understanding, restriction, arrangement or right. It does not have
outstanding any bonds, debentures, notes or other indebtedness.
	 
	 	(iii)	 	None of its Company Shares are beneficial owned or
Controlled by any Chinese nationals or residents.

	 	(d)	 	Subsidiaries and Branches. It does not presently own or Control,
directly or indirectly, any interest in any other corporation, association, or other
business entity, and is not a participant in any joint venture, partnership, or
similar arrangement, except as set forth in Schedule B. Its particulars as set forth
in Schedule B are true and accurate in all respects and the percentage of its share capital shown therein as owned or Controlled by it is
beneficially owned and clear of all Encumbrances. There is no agreement or
arrangement in force which calls for the present or future issue or sale of, or
grant to any person the

 

 

	 	 	 	right (whether conditional or otherwise) to call for the
issue, sale or transfer of any of its share or loan capital (including any of its
option, notes, warrants or other securities or rights convertible or ultimately
convertible into shares or equity interests).
	 
	 	(e)	 	Authority. The execution, delivery, and performance of this
Agreement by the Company have been duly authorized by all necessary action of its
board of directors and shareholders. Certified copies of the resolutions adopted by
the Company’s board of directors approving this Agreement and transactions
contemplated hereby and thereby have been provided to XFM.
	 
	 	(f)	 	Execution. The Company’s execution and delivery of this Agreement
shall constitute valid, binding, and enforceable obligations of it in accordance with
their terms, except to the extent that enforceability may be limited by applicable
bankruptcy, reorganization, insolvency, moratorium or other laws affecting the
enforcement of creditors’ rights generally and by general principles of equity,
regardless of whether such enforceability is considered in a proceeding at law or in
equity.
	 
	 	(g)	 	Compliance with Laws and Other Instruments. It holds, and at all
times has held, all licenses, permits, and authorizations from all governmental
entities necessary for the lawful conduct of its business pursuant to all applicable
statutes, laws, ordinances, rules, and regulations of all such authorities having
jurisdiction over it or any part of its operations. There are no violations or claimed
violations of any such license, permit, or authorization, or any such statute, law,
ordinance, rule or regulation.
	 
	 	(h)	 	Corporate Governance. Neither the execution and delivery of nor the
performance by it of its obligations under this Agreement will (i) conflict with or
result in any breach of its Company Charter Documents; (ii) require any Consent, (iii)
conflict with, result in a breach or default of, or give rise to any right of
termination, cancellation or acceleration or result in the creation of any lien,
charge, encumbrance, or restriction upon any of the properties or Assets of it or its
shares under, any law, statute, rule, regulation, judgment, decree, order, government
permit, license or order or any mortgage, indenture, note, license, trust, agreement
or other agreement, instrument or obligation to which it is a party.
	 
	 	(i)	 	No Liabilities and No Business Activities. Save as contemplated
under this Agreement, it has no liabilities of any nature howsoever arising, is not
involved in any litigation whether as plaintiff or defendant, has no Assets and is not
carrying on any business of any nature.
	 
	 	(j)	 	No Contracts. Save as contemplated under this Agreement, it has not
entered into any agreement, contract, legal arrangement or documentation of any type
or nature.

 

 

	 	(k)	 	No PRC Shareholders. There are no persons who are nationals or
residents of the PRC who are shareholders or directors of the Company.

	1.2	 	The PRC Group. In respect of each member of the PRC Group and their branches and
subsidiaries (if any):

	 	(a)	 	Organization, Standing, and Power. It is a company duly organized,
validly existing, and in good standing under the laws of the PRC, have all requisite
corporate power and authority to carry on its businesses, and is duly qualified and in
good standing to do business in each jurisdiction in which it conducts business. The
company has made available to XFM complete and correct copies of the company’s
articles of incorporation, in each case, as amended to the date hereof (collectively,
the “PRC Charter Documents”).
	 
	 	(b)	 	Corporate Records. The complete and correct copies of the minute
books and corporate records of the company which has been filed with the local
authorities including, but not limited to, the SAIC have been made available to XFM
and are materially complete, correct and accurate.
	 
	 	(c)	 	Capital Structure.

	 	(i)	 	Immediately prior to the Equity Transfers, the capital
structure of each of the member of the PRC Group is as set forth in Schedule
B.
	 
	 	(ii)	 	There are no options, warrants, calls, conversion rights,
commitments, agreements, contracts, restrictions, or rights of any character
to which the company is a party or by which the company may be bound
obligating to issue, deliver or sell, or cause to be issued, delivered or
sold, additional equity interest, or obligating the company to grant, extend
or enter into any such option, warrant, call, conversion right, commitment,
agreement, contract, understanding, restriction, arrangement or right. The
company has outstanding any bonds, debentures, notes or other indebtedness.
	 
	 	(iii)	 	Immediately prior to the Jiasen Equity Transfer, Zhou
Kaidian () is the owner of all interests in and to Jiasen free and clear
of all Encumbrances and, except any rights in favour of XFM in this Agreement,
no other party has any rights, now existing or contingent, whether or not
exercised or claimed and whether or not by exercise of the power of any Governmental Entity, to any interest in the
company.
	 
	 	(iv)	 	Immediately following the Jiasen Equity Transfer, Jiasen and
Tianjin TV Station are the owners of 49% and 51%, respectively, of the
interests in and to SDTC free and clear of all Encumbrances and, except any
rights in favour of Jiasen in this Agreement, no other party has any rights,
now existing or contingent, whether or not exercised or claimed and whether or
not by exercise of the power of any Governmental Entity, to any interest in
the company.

 

 

	 	(d)	 	Subsidiaries. The company does not presently own or Control, directly
or indirectly, any interest in any other corporation, association, or other business
entity, and is not a participant in any joint venture, partnership, or similar
arrangement, except as set forth in Schedule B. The particulars of the company set
forth in Schedule B are true and accurate in all respects and the percentage of the
equity interest shown therein as owned or Controlled by any party is beneficially
owned free from any Encumbrance. There is no agreement or arrangement in force which
calls for the present or future issue or sale of, or grant to any person the right
(whether conditional or otherwise) to call for the issue, sale or transfer of any
share or loan capital of the company (including any option, notes, warrants or other
securities or rights convertible or ultimately convertible into shares or equity
interests in the company).
	 
	 	(dd)	 	SDTC Equity Transfer. The SDTC Equity Transfer has been duly
completed and all consideration for the SDTC Equity Transfer has been fully paid.
The execution and delivery of all necessary documents and the submission to and
registration with the relevant Governmental Entities have been duly obtained.
	 
	 	(e)	 	Compliance with Laws and Other Instruments. The company holds all
material licences, permits, and authorizations from all governmental entities
necessary for the lawful conduct of its business pursuant to all applicable statutes,
laws, ordinances, rules, and regulations of all such authorities having jurisdiction
over it or any part of its operations or the failure to obtain which shall have a
Material Adverse Change on the business or Assets of the company. The company has
duly and promptly performed all requisite inspections, including but not limited to,
annual inspections by any Governmental Entity for the lawful conduct of its business
and its operation and for it to validly and legally hold all its licences, permits and
authorizations.
	 
	 	(f)	 	Corporate Governance. Neither the execution and delivery of this
Agreement nor the performance by the company of its obligations under this Agreement
will (i) conflict with or result in any breach of the PRC Charter Documents; (ii) require any Consent by any Governmental Entity, (iii)
conflict with, result in a breach or default of, or give rise to any right of
termination, cancellation or acceleration or result in the creation of any lien,
charge, encumbrance, or restriction upon any of the properties or Assets of the
company or equity interest in the company under any law, statute, rule, regulation,
judgment, decree, order, government permit, licence or order or any mortgage,
indenture, note, licence, trust, agreement or other agreement, instrument or
obligation to which the company is a party.

	1.3	 	The Group. In respect of each of member of the Group and their branches and
subsidiaries (if any):

	 	(a)	 	Technology and Intellectual Property Rights.

 

 

	 	(i)	 	Schedule G contains a list of the Intellectual Property which
includes the following:

	 	(A)	 	all patents, domain names, trademarks, trade names, trade dress and service marks, and any applications and
registrations for any of the foregoing, that is included in the Owned
Intellectual Property;
	 
	 	(B)	 	all registered copyrights, and applications for registered copyrights for any Owned Intellectual Property;
	 
	 	(C)	 	all material products and services that currently are published and/or offered by the company, or that are
currently under development by the company and scheduled to be
commercially released or offered within six (6) months of the Closing
Date;
	 
	 	(D)	 	all material licenses and sublicenses of Owned Intellectual Property;
	 
	 	(E)	 	all Licensed Intellectual Property (other than license agreements for standard “shrink wrapped, off the shelf,”
commercially available, third party products used by the company) and
any sublicenses thereto; and
	 
	 	(F)	 	any material obligation of exclusivity, non-competition, non-solicitation, first negotiation or “most favoured
nation” or “equally favoured nation” (e.g. obligating the company to
provide terms as favourable or more favourable as granted to others)
to which the company is subject under any agreement that does not fall within the ambit of (D) or (E) in
this paragraph.

	 	(ii)	 	The company owns or has the right to use all Intellectual
Property used or held for use in the conduct of its business without any
conflict with the rights of others. All products and technology that have
been or currently are published and/or offered by the company or are under
development by the company, and all products and/or technology underlying any
and all services that have been or currently are offered by the company or are
under development by the company is either: (1) owned by the company, (2) in
the public domain, or (3) rightfully used by the company pursuant to a valid
written license or other agreement.
	 
	 	(iii)	 	The company is not, as a result of the execution or delivery
of this Agreement, nor performance of the Parties’ obligations under this
Agreements will the company be in violation of any license, sublicense or
other agreement relating to the Intellectual Property or of any non-disclosure
agreement to which the company is a party or otherwise bound.

 

 

	 	(iv)	 	The company is not obligated to provide any financial
consideration or other consideration to any third party, nor is any third
party otherwise entitled to any financial consideration or other
consideration, with respect to any exercise of rights by the company or its
successors in the Intellectual Property.
	 
	 	(v)	 	The company’s use, reproduction, modification, distribution,
licensing, sublicensing, sale, or any other exercise of rights in any Owned
Intellectual Property by the company or its licensees does not infringe,
misappropriate or violate any copyright, patent, trade secret, trademark,
service mark, trade name, firm name, logo, trade dress, database right, moral
rights, rights to use likeness, other intellectual property rights, right of
privacy, right of publicity or right in personal or other data of any person.
Further, the use, reproduction, modification, distribution, licensing,
sublicensing, sale, or any other exercise of rights in any Licensed
Intellectual Property or any other authorized exercise of rights in or to
Licensed Intellectual Property by the company or their licensees does not
infringe, misappropriate or violate any copyright, patent, trade secret,
trademark, service mark, trade name, firm name, logo, trade dress, moral
right, database right, other intellectual property right, right of privacy,
right of publicity or right in personal or other data of any person. Further,
the distribution, licensing, sublicensing, sale, or other provision of
products and services by the company or its resellers or licensees does not
infringe, misappropriate or violate any copyright, patent, trade secret, trademark, service mark, trade name,
firm name, logo, trade dress, moral right, database right, other
intellectual property right, right of privacy, right of publicity or right
in personal or other data of any person.
	 
	 	(vi)	 	No action, suit or proceeding (i) challenging the validity,
enforceability, or ownership by the company of any of Owned Intellectual
Property or (ii) to the effect that the use, reproduction, modification,
manufacturing, distribution, licensing, sublicensing, sale or any other
exercise of rights in any Owned Intellectual Property by the company or its
licensees infringes, misappropriate or violates any intellectual property or
other proprietary or personal right of any person is pending or is threatened
by any person. Further, no claim to the effect that the distribution,
licensing, sublicensing, sale or other provision of products and services by
the company or its resellers or licensees infringes, misappropriates or
violates any intellectual property or other proprietary or personal right of
any person is pending or, to the knowledge of the Vendor, is threatened by any
person. There is no unauthorized use, infringement or misappropriation of any
of Owned Intellectual Property by any third party, employee or former employee
to the best knowledge of the Vendor.
	 
	 	(vii)	 	No other party has any security interests in any Intellectual Property.

 

 

	 	(viii)	 	The company has secured from all parties who have created any portion of, or
otherwise have any rights in or to, Owned Intellectual Property, other than
employees of the company whose work product was created by them entirely
within the scope of their employment by the company and constitutes work made
for hire owned by the company, valid written assignments or licenses of any
such work or other rights to the company that are enforceable by the company
and has made available true and complete copies of such assignments or
licenses to XFM.
	 
	 	(ix)	 	The company owns all right, title and interest in and to all
data the company collect from or discloses about users of its products and
services. The company’s practices regarding the collection and use of consumer
personal information are in accordance in all respects with applicable laws
and regulations of all jurisdictions in which the company operates.
	 
	 	(x)	 	No officer, director, stockholder or employee of the company,
nor any spouse, or relative thereof, owns directly or indirectly, in whole or
in part, any Intellectual Property.
	 
	 	(xi)	 	The Company has not transferred, assigned, disposed in any
manner of any Intellectual Property.

	 	(b)	 	Financial Statements. There are no liabilities, claims or
obligations against the company of any nature in excess of US$5,000, whether absolute,
contingent, anticipated or otherwise, whether due or to become due, that are not shown
in the Financial Statements.
	 
	 	(c)	 	Accounts Receivable. All of the accounts receivable shown in the
Financial Statements as of the Closing Date will have arisen out of bona fide
transactions of the company in the ordinary course of business and have been collected
or are good and collectible in the aggregate recorded amounts thereof (less the
allowance for doubtful accounts also appearing in such Financial Statements and net of
returns and payment discounts allowable by the company’s policies) and can reasonably
be anticipated to be paid in full without outside collection efforts within ninety
(90) days of the due date.
	 
	 	(d)	 	Taxes.

	 	(i)	 	The company has timely filed (or caused to be filed) all tax
returns (“Returns”) required to be filed by it. All taxes required to be paid
(whether or not shown on any Return) in respect of the periods covered by such
Returns (“Return Periods”) have been paid or fully accrued up until Jiasen
Closing. The company has not requested or been granted any extension of time
to file any Return. The Vendors have

 

 

	 	 	 	made available to XFM true and correct
copies of all Returns, and all material correspondence with any taxing
authority.
	 
	 	(ii)	 	No deficiencies or adjustments for any tax of the company has
been claimed, proposed or assessed or threatened in writing and not paid.
There is currently no claim outstanding by an authority in a jurisdiction
where the company does not file Returns that the company is or may be subject
to taxation by that jurisdiction. The company is not subject to any pending
or threatened tax audit or examination. The company has not entered into any
agreements, waivers or other arrangements in respect of the statute of
limitations in respect of its taxes or Returns.
	 
	 	(iii)	 	For the purposes of this Agreement, the terms “tax” and
“taxes” shall include all taxes, assessments, duties, tariffs, registration
fees, and other governmental charges in the nature of taxes including, all
income, franchise, property, production, sales, use, payroll, license,
windfall profits, value added, severance, withholding, excise, gross receipts and other taxes, as well as any interest, additions or penalties
relating thereto and any interest in respect of such additions or
penalties.
	 
	 	(iv)	 	There are no liens for taxes upon the Assets of the company
except for taxes that are not yet payable. The company has withheld all taxes
required to be withheld in respect of wages, salaries and other payments to
all employees, officers and directors and any taxes required to be withheld
from any other person and has timely paid all such amounts withheld to the
proper taxing authority.

	 	(e)	 	Absence of Certain Changes and Events. Since the date of the
Financial Statements, there has not been:

	 	(i)	 	Any transaction involving more than US$5,000 for a single
transaction and a series of transactions involving in aggregate more than
US$100,000 entered into by the company other than in the ordinary course of
business;
	 
	 	(ii)	 	Any declaration, payment, or setting aside of any dividend or
other distribution to or for any of the holders of any equity interest;
	 
	 	(iii)	 	Any termination, modification, or rescission of, or waiver
by the company of rights under, any contract having or reasonably likely to
have a Material Adverse Change on the business of the company;
	 
	 	(iv)	 	Any discharge or satisfaction by the company of any lien or
encumbrance, or any payment of any obligation or liability (absolute or
contingent) other than liabilities shown on the Financial Statements and
liabilities incurred since the date of the Financial Statements in the
ordinary course of business;

 

 

	 	(v)	 	Any mortgage, pledge, imposition of any security interest,
claim, encumbrance, or other restriction created on any of the Assets,
tangible or intangible, of the company having or reasonably likely to have a
Material Adverse Change on the business of the company;
	 
	 	(vi)	 	Any settlement amount of any claim, dispute, suit, proceeding
or investigation regarding the company; or
	 
	 	(vii)	 	Any event or condition resulting in a Material Adverse
Change on the business of the company.

	 	(f)	 	Leases in Effect; Real Estate. All real property leases and
subleases to which the company is a party and any amendments or modifications thereof
are listed in Schedule H (each a “Lease” and,
collectively, the “Leases”). The company has a valid leasehold interest under such Leases.
There are no existing defaults, and the company has not received or given any
written notice of default or claimed default with respect to or received any order,
notice, or other notification from any Governmental Entity in respect of any Lease
or property related thereto and there is no event that with notice or lapse of
time, or both, would constitute a default thereunder. All real property occupied
by the company is subject to a written lease. The company holds no interest in
real property other than the Leases. The company has filed and registered all
Leases with all applicable Governmental Entities.
	 
	 	(g)	 	Personal Property. The company has valid title, free and clear of
all title defects, security interests, pledges, options, claims, liens, and
encumbrances of any nature whatsoever to all inventory, receivables, furniture,
machinery, equipment, and other personal property, tangible or otherwise, reflected on
the Financial Statements, except for acquisitions and dispositions since the date of
the Financial Statements in the ordinary course of business and not exceeding
US$1,000.
	 
	 	(h)	 	Litigation and Other Proceedings. None of the company nor any of its
past or present officers, directors, or employees, is a party to any pending
or, threatened action, suit, labour dispute (including any union
representation proceeding), proceeding, investigation, or discrimination claim in or
by any court or governmental board, commission, agency, department, or officer, or any
arbitrator, arising from the actions or omissions of the company or affecting any
properties, Assets or capital of the company, nor is there any reasonable basis for
any such action, suit, labour dispute, proceeding, investigation or discrimination
claim, or, in the case of an individual, from acts in his or her capacity as an
officer, director, employee, agent or contractor of the company. The company is not a
named party to any order, writ, judgment, decree, or injunction.
	 
	 	(i)	 	No Defaults. The company is and has not received written notice that
it would be with the passage of time, in default or violation of any term, condition,
or provision of (i) its Company Charter Documents or PRC Charter Documents,

 

 

	 	 	 	as the case may be; (ii) any judgment, decree, or order to which the company is a named
party; or (iii) any loan or credit agreement, note, bond, mortgage, indenture,
contract, agreement, lease, license, or other instrument to which the company is now a
party or by which it or any of its properties or Assets is bound, except for defaults
and violations which have been cured or, individually or in the aggregate, would not
have a Material Adverse Change on the business of the company.
	 
	 	(j)	 	Material Contracts. Except for the agreements set forth in Schedule
I (the “Material Contracts”), the company is not a party to or bound by:

	 	(i)	 	Any employment contract or arrangement providing for annual
salary in excess of US$30,000 with any officer or employee or with any
consultant or director providing for annual compensation in excess of
US$30,000;
	 
	 	(ii)	 	Any plan or contract or arrangement, written or oral,
providing for bonuses, pensions, deferred compensation, retirement payments,
profit-sharing, severance, acceleration of vesting of benefits, payments upon
change of control events, or the like;
	 
	 	(iii)	 	Any joint venture contract or arrangement or any other
agreement that has involved or is expected to involve a sharing of profits;
	 
	 	(iv)	 	Reseller or distribution agreement, volume purchase
agreement, corporate end user sales or service agreement, reproduction or
replication agreement or manufacturing agreement in which the amount involved
exceeds annually, US$50,000 or pursuant to which the company has granted or
received manufacturing rights, most favoured nation pricing provisions, or
exclusive marketing, reproduction, publishing or distribution rights related
to any product, group of products or territory;
	 
	 	(v)	 	Any agreement, franchise, or indenture where the amount of
consideration payable thereunder is greater than US$50,000 in any year during
the term of such agreement, franchise or indenture and which has not been
terminated or performed in its entirety and not renewed which may be, by its
terms, terminated, impaired, or adversely affected by reason of the execution
of this Agreement, Jiasen Closing, or the consummation of the transactions
contemplated;
	 
	 	(vi)	 	Any license, permit, or authorization which has not been
terminated or performed in its entirety and not renewed which may be, by its
terms, terminated, impaired, or adversely affected by reason of the execution
of this Agreement, the Jiasen Closing or the consummation of the transactions
contemplated;

 

 

	 	(vii)	 	Except for trade indebtedness incurred in the ordinary
course of business, any instrument evidencing or related in any way to
indebtedness incurred in the acquisition of companies or other entities or
indebtedness for borrowed money by way of direct loan, sale of debt
securities, purchase money obligation, conditional sale, guarantee, or
otherwise which individually is in the amount of US$5,000 or more; or
	 
	 	(viii)	 	Any contract containing covenants purporting to limit the company’s freedom
to compete in any line of business in any geographic area.

	 	 	 	All Material Contracts are valid and in full force and effect and the company
has not, nor has any other party thereto, breached any material provisions of, or
entered into default in any material respect under the terms thereof other than
such beaches or defaults that have been cured or that would not cause a Material
Adverse Change to the Assets or business of the company. The Vendor has made
available to XFM a copy of each Material Contract specified in Schedule I together
with all amendments, material written waivers or other material written changes
thereto. All the material contracts as set forth under Schedule I are valid and in
full force and effect and the Vendor are not aware of any facts or events which may
result in any of the Material Contracts to be terminated or not being renewed prior
to or upon expiry by the relevant parties.
	 
	 	(k)	 	Assets. The company has legal and beneficial ownership of all Assets
owned, possessed or used by the company as indicated in the Financial Statements free
and clear of any Encumbrances. No other Person owns any such property and Assets
which are being used by the company except for the leased property and personal
property leased by the company pursuant to the Material Contracts.
	 
	 	(l)	 	Material Relations. None of the parties to any of the Material
Contracts have in any way expressed to the company or the Vendor any intent to reduce
the amount of or terminate its business with the company in the future.
	 
	 	(m)	 	Insurance and Banking Facilities. Schedule J contains a complete and
correct list of (i) all contracts of insurance or indemnity of the company in force at
the date of this Agreement (including name of insurer or indemnitor, agent, annual
premium, coverage, deductible amounts, and expiration date) and (ii) the names and
locations of all banks in which the company has accounts or safe deposit boxes, the
designation of each such account and safe deposit box, and the names of all persons
authorized to draw on or have access to each such account and safe deposit box. All
premiums and other payments due from the company with respect to any such contracts of
insurance or indemnity have been paid, and there are no act, or failures to act that
has or might cause any such contract to be cancelled or terminated. All known claims
for insurance or indemnity have been presented.
	 
	 	(n)	 	Employees. The company has no written or oral contract of employment
or other employment agreement with any of its employees (including any

 

 

	 	 	 	contracts relating to the temporary use or loaning of employees) that are not terminable at will by the company without payment of severance or termination
payments or benefits. The company is not a party to any pending or threatened
labour dispute concerning the company’s business or employment practices or the
subject of any organizing drive, labour grievance or petition to certify a labour
union. The company has complied with in all material aspects all applicable laws,
treaties, ordinances, rules, and regulations and requirements relating to the
employment of labour. There are no claims pending or to the best of the knowledge
of the Vendor, threatened to be brought against the company, in any court or
administrative agency by any former or current employees of the company. The
company has made all required contributions under the applicable laws in respect of
wages, salaries and other payments to all employees, officers and directors and has
timely paid all such amounts to the proper Governmental Entity.
	 
	 	(o)	 	Certain Agreements. Neither the execution and delivery of this
Agreement nor the performance of its obligations contained in them will: (i)
result in any payment by the company (including severance, unemployment compensation,
parachute payment, bonus or otherwise) becoming due to any director, employee, or
independent contractor of the company under any employee benefit plan, agreement, or
otherwise, (ii) increase any benefits otherwise payable under any employee benefit
plan or agreement, or (iii) result in the acceleration of the time of payment or
vesting of any such benefits.
	 
	 	(p)	 	Guarantees and Suretyships. The company has no powers of attorney
outstanding and the company has no obligations or liabilities (absolute or contingent)
as guarantor, surety, co-signer, endorser, co-maker, or otherwise respecting the
obligations or liabilities of any person, corporation, partnership, joint venture,
association, organization, or other entity other than as an endorser of negotiable
instruments in the ordinary course of business.
	 
	 	(q)	 	Absence of Questionable Payments. None of the Vendor, the Company nor
any of their respective Affiliates, directors, officers, agents, employees or other
persons acting on its behalf, has used any corporate or other funds for unlawful
contributions, payments, gifts, or entertainment, or made any unlawful expenditures
relating to political activity to government officials or others or established or
maintained any unlawful or unrecorded funds. None of the company nor any of its
respective Affiliates, directors, officers, agents, employees or other persons
acting on their behalf, has accepted or received any unlawful contributions,
payments, gifts, or expenditures.

	1.4	 	General

	 	(a)	 	The Closing Deliverable Agreements. On or before Jiasen Closing,
each of the Closing Deliverable Agreements will have been duly executed by the parties
thereto and, as at Jiasen Closing, will be in full force and effect and will
constitute the valid and legally binding obligations of the parties thereto
enforceable in accordance with their terms at Jiasen Closing.

 

 

	 	(b)	 	Full Disclosure. (i) The Vendor is not aware of any facts which
could materially adversely affect it or any member of the Group which are likely in
the future to materially adversely affect any of them and which have not been
disclosed by or on behalf of the Vendor in connection with or pursuant to this
Agreement; and (ii) No representation or warranty in this Agreement, nor any statement
or certificate furnished or to be furnished to XFM pursuant to or in connection with
this Agreement contains or will contain any untrue statement of material fact, or
omits or will omit to state a material fact necessary to make the statements contained
herein or therein not misleading.
	 
	 	(c)	 	Reliance. The representations and warranties are made by the Vendor
with the knowledge and expectation that XFM are placing reliance thereon.

	1.5	 	With respect to the Vendor:

	 	(a)	 	Organisation and Qualification. It is a person or a legal entity
duly organised and validly existing under the laws of its jurisdiction of
incorporation.
	 
	 	(b)	 	Authorisation and Authority. It has taken all corporate or other
action required to authorise, and has duly authorised, the execution, delivery and
performance of this Agreement and upon due execution and delivery the same will
constitute its legal, valid and binding obligations enforceable in accordance with its
terms.
	 
	 	(c)	 	Power and Authority. It has full power and authority to make the
covenants and representations referred to herein and to sale the Company Shares and to
execute, deliver and perform this Agreement and the Ancillary Agreement (where
applicable).
	 
	 	(d)	 	Compliance with Laws and Other Instruments. It holds, and at all
times has held all licenses, permits, and authorizations from all governmental
entities necessary for the lawful conduct of its business pursuant to all applicable
statutes, laws, ordinances, rules, and regulations of all such authorities having
jurisdiction over it or any part of its operations. There are no violations or
claimed violations of any such license, permit, or authorization, or any such statute,
law, ordinance, rule or regulation.
	 
	 	(e)	 	Corporate Governance. Neither the execution and delivery of this
Agreement nor the performance by it of its obligations under this Agreement will (i)
conflict with or result in any breach of its charter documents; (ii) require any
Consents by Governmental Entity, (iii) conflict with, result in a breach or default
of, or give rise to any right of termination, cancellation or acceleration or result
in the creation of any lien, charge, encumbrance, or restriction upon any of the
properties or Assets of it or its shares under, any law, statute, rule, regulation,
judgment, decree, order, government permit, license or order or

 

 

	 	 	 	any mortgage, indenture, note, license, trust, agreement or other agreement, instrument or
obligation to which it is a party.
	 
	 	(f)	 	Investor Representation. The Vendor would be acquiring XFM Common
Shares for its own account, not as a nominee or agent and for investment only and not
with a view toward or for sale in the United States connection with any distribution
thereof, or with any present intention of distributing or selling the XFM Common
Shares in the United States. The Vendor understands and acknowledges that the XFM
Common Shares are not being registered under the U.S. securities laws, any U.S. state
securities laws or otherwise. The Vendor understands that the XFM Common Shares cannot
be sold in the United States unless they are subsequently registered under the U.S.
securities laws and applicable state securities laws or an exemption from such
registration is available. For the avoidance of doubt, the foregoing representations
are limited to sales and distributions of XFM Common Shares in the United States and
shall not be construed as a representation or restrictive covenants in connection with
sales or distributions by the Vendor of XFM Common Shares outside the United States.

 

 

Schedule E

JV Closing Representations and Warranties

	1.2	 	The PRC Group. In respect of each member of the PRC Group (except for HBLD and
Jiasen) and the JV and their branches and subsidiaries (if any):

	 	(a)	 	Organization, Standing, and Power. It is a company duly organized,
validly existing, and in good standing under the laws of the PRC, have all requisite
corporate power and authority to carry on its businesses, and is duly qualified and in
good standing to do business in each jurisdiction in which it conducts business.
	 
	 	(b)	 	Corporate Records. The complete and correct copies of the
minute books and corporate records of the company which has been filed with the local
authorities including, but not limited to, the SAIC have been made available to XFM
and are materially complete, correct and accurate.
	 
	 	(c)	 	Capital Structure.

	 	(i)	 	The capital structure of each of the member of the PRC Group
is as set forth in Schedule C.
	 
	 	(ii)	 	There are no options, warrants, calls, conversion rights,
commitments, agreements, contracts, restrictions, or rights of any character
to which the company is a party or by which the company may be bound
obligating to issue, deliver or sell, or cause to be issued, delivered or
sold, additional equity interest, or obligating the company to grant, extend
or enter into any such option, warrant, call, conversion right, commitment,
agreement, contract, understanding, restriction, arrangement or right. The
company has outstanding any bonds, debentures, notes or other indebtedness.

	 	(d)	 	Subsidiaries. The company does not presently own or Control, directly
or indirectly, any interest in any other corporation, association, or other business
entity, and is not a participant in any joint venture, partnership, or similar
arrangement. The particulars of the company set forth in Schedule C are true and
accurate in all respects and the percentage of the equity interest shown therein as
owned or Controlled by any party is beneficially owned free from any Encumbrance.
There is no agreement or arrangement in force which calls for the present or future
issue or sale of, or grant to any person the right (whether conditional or otherwise)
to call for the issue, sale or transfer of any share or loan capital of the company
(including any option, notes, warrants or other securities or rights convertible or ultimately convertible into shares or equity interests in the
company).
	 
	 	(e)	 	Compliance with Laws and Other Instruments. The company holds all
material licences, permits, and authorizations from all governmental entities

 

 

	 	 	 	necessary for the lawful conduct of its business pursuant to all applicable statutes,
laws, ordinances, rules, and regulations of all such authorities having jurisdiction
over it or any part of its operations or the failure to obtain which shall have a
Material Adverse Change on the business or Assets of the company. The company has
duly and promptly performed all requisite inspections, including but not limited to,
annual inspections by any Governmental Entity for the lawful conduct of its business
and its operation and for it to validly and legally hold all its licences, permits and
authorizations.
	 
	 	(f)	 	Corporate Governance. Neither the execution and delivery of this
Agreement nor the performance by the company of its obligations under this Agreement
will (i) conflict with or result in any breach of the PRC Charter Documents; (ii)
require any Consent by any Governmental Entity, (iii) conflict with, result in a
breach or default of, or give rise to any right of termination, cancellation or
acceleration or result in the creation of any lien, charge, encumbrance, or
restriction upon any of the properties or Assets of the company or equity interest in
the company under any law, statute, rule, regulation, judgment, decree, order,
government permit, licence or order or any mortgage, indenture, note, licence, trust,
agreement or other agreement, instrument or obligation to which the company is a
party.

	1.3	 	The Group. In respect of each of member of the Group and the JV and their branches
and subsidiaries (if any):

	 	(a)	 	Technology and Intellectual Property Rights.

	 	(i)	 	Schedule G contains a list of the Intellectual Property which
includes the following:

	 	(A)	 	all patents, domain names, trademarks, trade
names, trade dress and service marks, and any applications and
registrations for any of the foregoing, that is included in the Owned
Intellectual Property;
	 
	 	(B)	 	all registered copyrights, and applications
for registered copyrights for any Owned Intellectual Property;
	 
	 	(C)	 	all material products and services that
currently are published and/or offered by the company, or that are currently under development by the company and scheduled to be
commercially released or offered within six (6) months of the
Closing Date;
	 
	 	(D)	 	all material licenses and sublicenses of
Owned Intellectual Property;
	 
	 	(E)	 	all Licensed Intellectual Property (other
than license agreements for standard “shrink wrapped, off the shelf,”

 

 

	 	 	 	commercially available, third party products used by the company) and
any sublicenses thereto; and
	 
	 	(F)	 	any material obligation of exclusivity,
non-competition, non-solicitation, first negotiation or “most favoured
nation” or “equally favoured nation” (e.g. obligating the company to
provide terms as favourable or more favourable as granted to others)
to which the company is subject under any agreement that does not fall
within the ambit of (D) or (E) in this paragraph.

	 	(ii)	 	The company owns or has the right to use all Intellectual
Property used or held for use in the conduct of its business without any
conflict with the rights of others. All products and technology that have
been or currently are published and/or offered by the company or are under
development by the company, and all products and/or technology underlying any
and all services that have been or currently are offered by the company or are
under development by the company is either: (1) owned by the company, (2) in
the public domain, or (3) rightfully used by the company pursuant to a valid
written license or other agreement.
	 
	 	(iii)	 	The company is not, as a result of the execution or delivery
of this Agreement, nor performance of the Parties’ obligations under this
Agreements will the company be in violation of any license, sublicense or
other agreement relating to the Intellectual Property or of any non-disclosure
agreement to which the company is a party or otherwise bound.
	 
	 	(iv)	 	The company is not obligated to provide any financial
consideration or other consideration to any third party, nor is any third
party otherwise entitled to any financial consideration or other
consideration, with respect to any exercise of rights by the company or its
successors in the Intellectual Property.
	 
	 	(v)	 	The company’s use, reproduction, modification, distribution,
licensing, sublicensing, sale, or any other exercise of rights in any
Owned Intellectual Property by the company or its licensees does not
infringe, misappropriate or violate any copyright, patent, trade secret,
trademark, service mark, trade name, firm name, logo, trade dress, database
right, moral rights, rights to use likeness, other intellectual property
rights, right of privacy, right of publicity or right in personal or other
data of any person. Further, the use, reproduction, modification,
distribution, licensing, sublicensing, sale, or any other exercise of
rights in any Licensed Intellectual Property or any other authorized
exercise of rights in or to Licensed Intellectual Property by the company
or their licensees does not infringe, misappropriate or violate any
copyright, patent, trade secret, trademark, service mark, trade name, firm
name, logo, trade dress, moral right, database right, other intellectual
property

 

 

	 	 	 	right, right of privacy, right of publicity or right in personal
or other data of any person. Further, the distribution, licensing,
sublicensing, sale, or other provision of products and services by the
company or its resellers or licensees does not infringe, misappropriate or
violate any copyright, patent, trade secret, trademark, service mark, trade
name, firm name, logo, trade dress, moral right, database right, other
intellectual property right, right of privacy, right of publicity or right in personal or other data of any person.
	 
	 	(vi)	 	No action, suit or proceeding (i) challenging the validity,
enforceability, or ownership by the company of any of Owned Intellectual
Property or (ii) to the effect that the use, reproduction, modification,
manufacturing, distribution, licensing, sublicensing, sale or any other
exercise of rights in any Owned Intellectual Property by the company or its
licensees infringes, misappropriate or violates any intellectual property or
other proprietary or personal right of any person is pending or is threatened
by any person. Further, no claim to the effect that the distribution,
licensing, sublicensing, sale or other provision of products and services by
the company or its resellers or licensees infringes, misappropriates or
violates any intellectual property or other proprietary or personal right of
any person is pending or, to the knowledge of the Vendor, is threatened by any
person. There is no unauthorized use, infringement or misappropriation of any
of Owned Intellectual Property by any third party, employee or former employee
to the best knowledge of the Vendor.
	 
	 	(vii)	 	No other party has any security interests in any
Intellectual Property.
	 
	 	(viii)	 	The company has secured from all parties who have created any portion of, or
otherwise have any rights in or to, Owned Intellectual Property, other than
employees of the company whose work product was created by them entirely within the scope of their employment
by the company and constitutes work made for hire owned by the company,
valid written assignments or licenses of any such work or other rights to
the company that are enforceable by the company and has made available true
and complete copies of such assignments or licenses to XFM.
	 
	 	(ix)	 	The company owns all right, title and interest in and to all
data the company collect from or discloses about users of its products and
services. The company’s practices regarding the collection and use of consumer
personal information are in accordance in all respects with applicable laws
and regulations of all jurisdictions in which the company operates.
	 
	 	(x)	 	No officer, director, stockholder or employee of the company,
nor any spouse, or relative thereof, owns directly or indirectly, in whole or
in part, any Intellectual Property.

 

 

	 	(xi)	 	The Company has not transferred, assigned, disposed in any
manner of any Intellectual Property.

	 	(b)	 	Financial Statements. There are no liabilities, claims or
obligations against the company of any nature in excess of US$5,000, whether absolute,
contingent, anticipated or otherwise, whether due or to become due, that are not shown
in the Financial Statements.
	 
	 	(c)	 	Accounts Receivable.  All of the accounts receivable shown in the
Financial Statements as of the JV Closing Date will have arisen out of bona fide
transactions of the company in the ordinary course of business and have been
collected or are good and collectible in the aggregate recorded amounts thereof (less
the allowance for doubtful accounts also appearing in such Financial Statements and
net of returns and payment discounts allowable by the company’s policies) and can
reasonably be anticipated to be paid in full without outside collection efforts within
ninety (90) days of the due date.
	 
	 	(d)	 	Taxes.

	 	(i)	 	The company has timely filed (or caused to be filed) all
Returns required to be filed by it. All taxes required to be paid (whether or
not shown on any Return) in respect of the Return Period have been paid or
fully accrued up until JV Closing. The company has not requested or been
granted any extension of time to file any Return. The Vendors have made
available to XFM true and correct copies of all Returns, and all material
correspondence with any taxing authority.
	 
	 	(ii)	 	No deficiencies or adjustments for any tax of the company has
been claimed, proposed or assessed or threatened in writing and not paid.
There is currently no claim outstanding by an authority in a jurisdiction
where the company does not file Returns that the company is or may be subject
to taxation by that jurisdiction. The company is not subject to any pending
or threatened tax audit or examination. The company has not entered into any
agreements, waivers or other arrangements in respect of the statute of
limitations in respect of its taxes or Returns.
	 
	 	(iii)	 	For the purposes of this Agreement, the terms “tax” and
“taxes” shall include all taxes, assessments, duties, tariffs, registration
fees, and other governmental charges in the nature of taxes including, all
income, franchise, property, production, sales, use, payroll, license,
windfall profits, value added, severance, withholding, excise, gross receipts
and other taxes, as well as any interest, additions or penalties relating
thereto and any interest in respect of such additions or penalties.
	 
	 	(iv)	 	There are no liens for taxes upon the Assets of the company
except for taxes that are not yet payable. The company has withheld all taxes
required to be withheld in respect of wages, salaries and other

 

 

	 	 	 	payments to all employees, officers and directors and any taxes required to be withheld
from any other person and has timely paid all such amounts withheld to the
proper taxing authority.

	 	(e)	 	Absence of Certain Changes and Events. Since the date of the Financial
Statements, there has not been:

	 	(i)	 	Any transaction involving more than US$5,000 for a single
transaction and a series of transactions involving in aggregate more than
US$100,000 entered into by the company other than in the ordinary course of
business;
	 
	 	(ii)	 	Any declaration, payment, or setting aside of any dividend or
other distribution to or for any of the holders of any equity interest;
	 
	 	(iii)	 	Any termination, modification, or rescission of, or waiver
by the company of rights under, any contract having or reasonably likely to
have a Material Adverse Change on the business of the company;
	 
	 	(iv)	 	Any discharge or satisfaction by the company of any lien or
encumbrance, or any payment of any obligation or liability (absolute or
contingent) other than liabilities shown on the Financial Statements and liabilities incurred since the date of the
Financial Statements in the ordinary course of business;
	 
	 	(v)	 	Any mortgage, pledge, imposition of any security interest,
claim, encumbrance, or other restriction created on any of the Assets,
tangible or intangible, of the company having or reasonably likely to have a
Material Adverse Change on the business of the company;
	 
	 	(vi)	 	Any settlement amount of any claim, dispute, suit, proceeding
or investigation regarding the company; or
	 
	 	(vii)	 	Any event or condition resulting in a Material Adverse
Change on the business of the company.

	 	(f)	 	Leases in Effect; Real Estate. All Leases are listed in Schedule H.
The company has a valid leasehold interest under such Leases. There are no existing
defaults, and the company has not received or given any written notice of default or
claimed default with respect to or received any order, notice, or other notification
from any Governmental Entity in respect of any Lease or property related thereto and
there is no event that with notice or lapse of time, or both, would constitute a
default thereunder. All real property occupied by the company is subject to a written
lease. The company holds no interest in real property other than the Leases. The
company has filed and registered all Leases with all applicable Governmental Entities.

 

 

	 	(g)	 	Personal Property. The company has valid title, free and clear of
all title defects, security interests, pledges, options, claims, liens, and
encumbrances of any nature whatsoever to all inventory, receivables, furniture,
machinery, equipment, and other personal property, tangible or otherwise, reflected on
the Financial Statements, except for acquisitions and dispositions since the date of
the Financial Statements in the ordinary course of business and not exceeding
US$1,000.
	 
	 	(h)	 	Litigation and Other Proceedings. None of the company nor any of its
past or present officers, directors, or employees, is a party to any pending
or, threatened action, suit, labour dispute (including any union
representation proceeding), proceeding, investigation, or discrimination claim in or
by any court or governmental board, commission, agency, department, or officer, or any
arbitrator, arising from the actions or omissions of the company or affecting any
properties, Assets or capital of the company, nor is there any reasonable basis for
any such action, suit, labour dispute, proceeding, investigation or discrimination
claim, or, in the case of an individual, from acts in his or her capacity as an
officer, director, employee, agent or contractor of the company. The company is not a named
party to any order, writ, judgment, decree, or injunction.
	 
	 	(i)	 	No Defaults. The company is and has not received written notice that
it would be with the passage of time, in default or violation of any term, condition,
or provision of (i) its Company Charter Documents or PRC Charter Documents, as the
case may be; (ii) any judgment, decree, or order to which the company is a named
party; or (iii) any loan or credit agreement, note, bond, mortgage, indenture,
contract, agreement, lease, license, or other instrument to which the company is now a
party or by which it or any of its properties or Assets is bound, except for defaults
and violations which have been cured or, individually or in the aggregate, would not
have a Material Adverse Change on the business of the company.
	 
	 	(j)	 	Material Contracts. Except for the Material Contracts and such other
agreements as may be additionally agreed by XFM in writing, the company is not a party
to or bound by:

	 	(i)	 	Any employment contract or arrangement providing for annual
salary in excess of US$30,000 with any officer or employee or with any
consultant or director providing for annual compensation in excess of
US$30,000;
	 
	 	(ii)	 	Any plan or contract or arrangement, written or oral,
providing for bonuses, pensions, deferred compensation, retirement payments,
profit-sharing, severance, acceleration of vesting of benefits, payments upon
change of control events, or the like;
	 
	 	(iii)	 	Any joint venture contract or arrangement or any other
agreement that has involved or is expected to involve a sharing of profits;

 

 

	 	(iv)	 	Reseller or distribution agreement, volume purchase
agreement, corporate end user sales or service agreement, reproduction or
replication agreement or manufacturing agreement in which the amount involved
exceeds annually, US$50,000 or pursuant to which the company has granted or
received manufacturing rights, most favoured nation pricing provisions, or
exclusive marketing, reproduction, publishing or distribution rights related
to any product, group of products or territory;
	 
	 	(v)	 	Any agreement, franchise, or indenture where the amount of
consideration payable thereunder is greater than US$50,000 in any year during
the term of such agreement, franchise or indenture and which has not been
terminated or performed in its entirety and not renewed which may be, by its
terms, terminated, impaired, or adversely affected by reason of the execution of this Agreement, JV
Closing, or the consummation of the transactions contemplated;
	 
	 	(vi)	 	Any license, permit, or authorization which has not been
terminated or performed in its entirety and not renewed which may be, by its
terms, terminated, impaired, or adversely affected by reason of the execution
of this Agreement, the JV Closing or the consummation of the transactions
contemplated;
	 
	 	(vii)	 	Except for trade indebtedness incurred in the ordinary
course of business, any instrument evidencing or related in any way to
indebtedness incurred in the acquisition of companies or other entities or
indebtedness for borrowed money by way of direct loan, sale of debt
securities, purchase money obligation, conditional sale, guarantee, or
otherwise which individually is in the amount of US$5,000 or more; or
	 
	 	(viii)	 	Any contract containing covenants purporting to limit the company’s freedom
to compete in any line of business in any geographic area.

	 	 	 	All Material Contracts are valid and in full force and effect and the company
has not, nor has any other party thereto, breached any material provisions of, or
entered into default in any material respect under the terms thereof other than
such beaches or defaults that have been cured or that would not cause a Material
Adverse Change to the Assets or business of the company. All the Material
Contracts are valid and in full force and effect and the Vendor are not aware of
any facts or events which may result in any of the Material Contracts to be
terminated or not being renewed prior to or upon expiry by the relevant parties.
	 
	 	(k)	 	Assets. The company has legal and beneficial ownership of all Assets
owned, possessed or used by the company as indicated in the Financial Statements free
and clear of any Encumbrances. No other Person owns any such property and Assets
which are being used by the company except for the leased

 

 

	 	 	 	property and personal property leased by the company pursuant to the Material Contracts.
	 
	 	(l)	 	Material Relations. None of the parties to any of the Material
Contracts have in any way expressed to the company or the Vendor any intent to reduce
the amount of or terminate its business with the company in the future.
	 
	 	(m)	 	Insurance and Banking Facilities. Schedule J contains a complete and
correct list of (i) all contracts of insurance or indemnity of the company in force at
the date of this Agreement (including name of insurer or indemnitor, agent, annual premium, coverage, deductible amounts, and expiration
date) and (ii) the names and locations of all banks in which the company has
accounts or safe deposit boxes, the designation of each such account and safe
deposit box, and the names of all persons authorized to draw on or have access to
each such account and safe deposit box. All premiums and other payments due from
the company with respect to any such contracts of insurance or indemnity have been
paid, and there are no act, or failures to act that has or might cause any such
contract to be cancelled or terminated. All known claims for insurance or
indemnity have been presented.
	 
	 	(n)	 	Employees. The company has no written or oral contract of employment
or other employment agreement with any of its employees (including any contracts
relating to the temporary use or loaning of employees) that are not terminable at will
by the company without payment of severance or termination payments or benefits. The
company is not a party to any pending or threatened labour dispute concerning the
company’s business or employment practices or the subject of any organizing drive,
labour grievance or petition to certify a labour union. The company has complied with
in all material aspects all applicable laws, treaties, ordinances, rules, and
regulations and requirements relating to the employment of labour. There are no
claims pending or to the best of the knowledge of the Vendor, threatened to be brought
against the company, in any court or administrative agency by any former or current
employees of the company. The company has made all required contributions under the
applicable laws in respect of wages, salaries and other payments to all employees,
officers and directors and has timely paid all such amounts to the proper Governmental
Entity.
	 
	 	(o)	 	Certain Agreements. Neither the execution and delivery of this
Agreement nor the performance of its obligations contained in them will: (i)
result in any payment by the company (including severance, unemployment compensation,
parachute payment, bonus or otherwise) becoming due to any director, employee, or
independent contractor of the company under any employee benefit plan, agreement, or
otherwise, (ii) increase any benefits otherwise payable under any employee benefit
plan or agreement, or (iii) result in the acceleration of the time of payment or
vesting of any such benefits.
	 
	 	(p)	 	Guarantees and Suretyships. The company has no powers of attorney
outstanding and the company has no obligations or liabilities (absolute or

 

 

	 	 	 	contingent) as guarantor, surety, co-signer, endorser, co-maker, or otherwise respecting the
obligations or liabilities of any person, corporation, partnership, joint venture,
association, organization, or other entity other than as an endorser of negotiable
instruments in the ordinary course of business.
	 
	 	(q)	 	Absence of Questionable Payments. None of the company nor any of its
respective Affiliates, directors, officers, agents, employees or other persons
acting on its behalf, has used any corporate or other funds for unlawful
contributions, payments, gifts, or entertainment, or made any unlawful expenditures
relating to political activity to government officials or others or established or
maintained any unlawful or unrecorded funds. None of the company nor any of its
respective Affiliates, directors, officers, agents, employees or other persons
acting on their behalf, has accepted or received any unlawful contributions,
payments, gifts, or expenditures.

	1.4	 	General

	 	(a)	 	The Closing Deliverable Agreements. On or before JV Closing, each of
the documents and agreements required to be delivered will have been duly executed by
the parties thereto and, as at JV Closing, will be in full force and effect and will
constitute the valid and legally binding obligations of the parties thereto
enforceable in accordance with their terms at JV Closing.
	 
	 	(b)	 	Full Disclosure. (i) The Vendor is not aware of any facts which
could materially adversely affect it or any member of the Group which are likely in
the future to materially adversely affect any of them and which have not been
disclosed by or on behalf of the Vendor in connection with or pursuant to this
Agreement; (ii) No representation or warranty in this Agreement, nor any statement or
certificate furnished or to be furnished to XFM pursuant to or in connection with this
Agreement contains or will contain any untrue statement of material fact, or omits or
will omit to state a material fact necessary to make the statements contained herein
or therein not misleading.
	 
	 	(c)	 	Reliance. The representations and warranties are made by the Vendor
with the knowledge and expectation that XFM are placing reliance thereon.

 

 

Schedule F

Details of Digital Channels

	Ø	 	Radio and Television Paid Channel License issued by the State Administration of Radio
Film and Television

License Number: PTC102053

Name of Channel: Time Fashion ();

Applicant: Tianjin TV Station;

Range of Broadcasting: PRC;

Way of Transmission: Cable;

Date of Issuing License: 1 January 2008;
	 
	Ø	 	Radio and Television Paid Channel License issued by the State Administration of Radio
Film and Television

License Number: PTC102052

Name of Channel: Time Trip ();

Applicant: Tianjin TV Station;

Range of Broadcasting: PRC;

Way of Transmission: Cable;

Date of Issuing License: 1 January 2008;
	 
	Ø	 	Radio and Television Paid Channel License issued by the State Administration of Radio
Film and Television

License Number: PTC102051

Name of Channel: Time Food ();

Applicant: Tianjin TV Station;

Range of Broadcasting: PRC;

Way of Transmission: Cable;

Date of Issuing License: 1 January 2008;
	 
	Ø	 	Radio and Television Paid Channel License issued by the State Administration of Radio
Film and Television

License Number: PTC102050

Name of Channel: Time Household ();

Applicant: Tianjin TV Station;

Range of Broadcasting: PRC;

Way of Transmission: Cable;

Date of Issuing License: 1 January 2008;

 

 

Schedule G

Intellectual Property

	A.	 	Domain names owned
	 
	 	 	NIL
	 
	B.	 	Trademarks owned or applied for
	 
	 	 	NIL

 

 

Schedule H

Leases

SDTC

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Date of	 	 	 	Actual	 	 
	Tenant	 	Landlord	 	Agreement	 	Address	 	Occupier	 	Term
	SDTC

	 	Tianjing ZhongTian
Telecom Co., Ltd.

()
	 	1 March 2008
	 	Kitchen room,
Zhongtian Building,
No. 3, Fukang Road,
Nankai District,
Tianjin (160 sq.m)
	 	SDTC
	 	1 March 2008-30 November 2008
	SDTC

	 	Tianjing ZhongTian
Telecom Co.,Ltd.

()
	 	19 November 2007
	 	13/F, Zhongtian Building, Fukang Road, Nankang District, Tianjin (695sqm)
	 	SDTC
	 	19 November 2007 -
18 November 2008

JIASEN

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Date of	 	 	 	Actual	 	 
	Tenant	 	Landlord	 	Agreement	 	Address	 	Occupier	 	Term
	Jiasen

	 	Shanghai Qilian Real
Estate Co., Ltd.

()
	 	 	 	Room 108, No. 188,
1035 avenue
	 	Jiasen
	 	1 July 2008 - 30 June 2013

 

 

[English
Translation Only]

Schedule I

Material Contracts

	 	 	 	 	 	 	 
	Contract	 	Counterparty	 	Description	 	Signing Date
	Agreement

	 	Tianjin TV Station
	 	For the operational need
of the digital channel
TJTV Home, Tianjin TV
Station shall offer no
less than 100 hours of
home programmes every
month to the Target
Company which shall pay
RMB 5 million to Tianjin
TV Station in one time as
the five-year programme
production fee. The term
of contract is from
October 2004 to October
2009.
	 	September 10th, 2004
	Agreement

	 	Tianjin TV Station
	 	For the operational need
of three digital channels
including Times Food,
Times Traveling and Times
Fashion, Tianjin TV
Station shall offer no
less than 100 hours of
programmes focusing on
food, traveling and
fashion every month to
the Target Company which
shall pay RMB 15.5
million to Tianjin TV
Station in one time as
the five-year programme
production fee. The term
of contract is from March
1st, 2005 to
February 28th,
2010.	 	 
	Loan Agreement

	 	Tianjin Rongchuang
Investment Co., Ltd.
	 	The Target Company lends
Tianjin Rongchuang
Investment Co., Ltd. RMB
14.5 million with no
repayment date specified.
Tianjin Rongchuang
Investment Co., Ltd. has
repaid RMB 4 million (the
payment voucher of RMB 4
million has been
provided.)
	 	August 17th,
2004
	Loan Agreement

	 	Tianjin TV Station
	 	The Target Company lends
Tianjin Rongchuang
Investment Co., Ltd.RMB
15.5 million with no
repayment date
specified.Tianjin
Rongchuang Investment
Co., Ltd. has not repaid
the loan.	 	 

 

 

	 	 	 	 	 	 	 
	Contract	 	Counterparty	 	Description	 	Signing Date
	Cooperation Agreement

	 	Fujian House Media Co.,
Ltd.
	 	Two parities cooperate to
promote the promgramme
Fashion Home. The Target
Company shall be
responsible for
broadcasting Fahsion
Home, while Fujian House
Media Co., Ltd. shall
assume all the cost and
relevant expenses on the
programme production. It
shall also be responsible
for the programme content
selection, pre- and
post-production, be in
charge of personnel,
management as well as
creditor rights and debts
in connection with the
programme and bear all
the possible legal
liabilities. Fujian House
Media Co., Ltd. owns the
copyright of Fashion
Home, and assumes
liabilities relevant to
this copyright. It shall
also be fully responsible
for all the commercial
operations of Fashion
Home. The contract term
is 7 months, from the
signing date of the
contract to December
31st, 2008.
The commercial
contracting fee shall be
settled every quarter with
an amount of RMB 50,000
per quarter. Fujian House
Media Co., Ltd.should pay
the commercial
contracting fee to The
Target Company on a
monthly basis and prepay
next month’s contracting
fee before the
20th of each
month.	 	 
	Agreement on Programme Production for Beifang Mobile TV

	 	Tianjin North Mobile
Digital Multi-media Co.,
Ltd.
	 	The Target Company shall
offer programmes to
Beifang Mobile Channel of
Tianjin North Mobile
Digital Multi-media Co.,
Ltd. The contract term is
from February
1st, 2006 to
January 31st,
2007. Before the end of
each cooperation period,
two parties shall
negotiate the content and
price of the cooperation
for the next period. Total
project cost is RMB
1098000 which should be
paid by Tianjin North
Mobile Digital
Multi-media Co., Ltd. to
the Target Company in 5
installments.	 	 
	Agreement on Programme Production for Beifang Mobile TV

	 	Tianjin North Mobile
Digital Multi-media Co.,
Ltd.
	 	The Target Company shall
offer programmes to
Beifang Mobile Channel of
Tianjin North Mobile
Digital Multi-media Co.,
Ltd. The term of contract
is from February
1st, 2006 to
January 31st,
2007. Before the end of
each cooperation period,
two parties shall
negotiate the content and
price of the cooperation
for the next period. Total
project cost is RMB
1098000 which should be
paid by Tianjin North
Mobile Digital
Multi-media Co., Ltd. to
the Target Company in 5
installments.	 	 

 

 

	 	 	 	 	 	 	 
	Contract	 	Counterparty	 	Description	 	Signing Date
	Agreement on Programme Production for Beifang Mobile TV

	 	Tianjin North Mobile
Digital Multi-media Co.,
Ltd.
	 	The Target Company shall
offer programmes to
Beifang Mobile Channel of
Tianjin North Mobile
Digital Multi-media Co.,
Ltd. The term of contract
is from February
1st, 2006 to
January 31st,
2007. Before the end of
each cooperation period,
two parties shall
negotiate the content and
price of the cooperation
for the next period. Total
project cost is RMB
1098000 which should be
paid by Tianjin North
Mobile Digital
Multi-media Co., Ltd. to
the Target Company in 5
installments.
	 	July 2nd, 2008
	Contract on TV Commercial Releasing

	 	Tianjin Mobile
Communication Co., Ltd.
	 	The Target Company
provides the
eexclusive naming right of
the programme Super
Talent Scout to Tianjin
Mobile Communication Co.,
Ltd. and releases its TV
Commercials. The term of
entrusted releasing is
from April
1st, 2005 to
March 31st,
2006. The total project
cost is RMB 1500000 and
Tianjin Mobile
Communication Co., Ltd.
shall pay it to the
Target Company in 5
installments.
	 	January 2005
	Contract on TV Commercial Releasing

	 	Tianjin Mobile
Communication Co., Ltd.
	 	The Target Company
provides the unique
naming right of the
programme Super Star
Factory to Tianjin Mobile
Communication Co., Ltd.
and releases its TV
Commercials. The term of
entrusted releasing
cooperation is from April
1st, 2006 to
March 31st,
2007. The total project
cost is RMB 1500000 and
Tianjin Mobile
Communication Co., Ltd.
shall pay it to the
Target Company in 5
installments.
	 	March 2006
	House Leasing Contract

	 	Tianjin
ZhongtianTeleommunication
Co., Ltd.
	 	The Target Company rents
13th floor of
Zhong Tian Building
(built by Tianjin
ZhongtianTeleommunication
Co., Ltd.), which is used
as office, with an area
of 695 m2. The leasing
term is from November
19th, 2007 and
November 18th,
2008. The total rent is
RMB 304410, which shall
be paid on a quarterly
basis.
	 	November 19th,
2007

 

 

	 	 	 	 	 	 	 
	Contract	 	Counterparty	 	Description	 	Signing Date
	House Leasing Contract

	 	Tianjin Zhongtian
Telecommunication Co.,
Ltd.
	 	The Target Company leases
a former stokehold in
Zhong Tian Building for
storage use, with an area
of 160 m2. The leasing
term is from March
1st, 2008 and
November 30th,
2008. The total rent is
RMB 39420, which shall be
paid on a quarterly
basis.
	 	March 1st, 2008

 

 

[English
Translation Only]

Schedule J

Insurance and Bank

	1.	 	SDTC

	 	 	 	 	 	 	 
	Type of Account	 	Opening Branch	 	Account Number
	Basic account

	 	Branch processing office at
Youyi Road, Tianjin West,
of China Industrial and Commerce
Bank Co., Ltd.
	 	 	0302014809300043788	 
	General account

	 	Branch operations unit of China
Agricultural Bank at New
Technology Park
	 	 	02200901040001510	 
	Basic account

	 	Heping Branch of Tianjian City,
China Construction Bank
	 	 	12001615300052500787	 

	2.	 	JIASEN

	 	 	 	 	 	 	 
	Type of Account	 	Opening Branch	 	Account Number
	Basic account

	 	Zhennan Branch of ICBC
	 	 	001151209000097204	 
	General account

	 	Jiangsu Road Branch of Shanghai
Bank
	 	 	03000857628	 

 

 

Schedule K

Licenses / Certificates

	1.	 	Radio and Television Paid Channel License

	 	Ø	 	Radio and Television Paid Channel License issued by the State Administration of Radio
Film and Television

License Number: PTC102053

Name of Channel: Time Fashion ();

Applicant: Tianjin TV Station;

Range of Broadcasting: PRC;

Way of Transmission: Cable;

Date of Issuing License: 1 January 2008;

Valid Term: 3 years.
	 
	 	Ø	 	Radio and Television Paid Channel License issued by the State Administration of Radio
Film and Television

License Number: PTC102052

Name of Channel: Time Trip ();

Applicant: Tianjin TV Station;

Range of Broadcasting: PRC;

Way of Transmission: Cable;

Date of Issuing License: 1 January 2008;

Valid Term: 3 years.
	 
	 	Ø	 	Radio and Television Paid Channel License issued by the State Administration of Radio
Film and Television

License Number: PTC102051

Name of Channel: Time Food ();

Applicant: Tianjin TV Station;

Range of Broadcasting: PRC;

Way of Transmission: Cable;

Date of Issuing License: 1 January 2008;

Valid Term: 3 years.
	 
	 	Ø	 	Radio and Television Paid Channel License issued by the State Administration of Radio
Film and Television

License Number: PTC102050

Name of Channel: Time Household ();

Applicant: Tianjin TV Station;

Range of Broadcasting: PRC;

Way of Transmission: Cable;

Date of Issuing License: 1 January 2008;

Valid Term: 3 years.

 

 

	 	 	 	(Note: the previous Radio and Television Paid Channel Licenses for channels Time Fashion,
Time Trip, Time Food and Time Household were issued on 10 December 2004 with a term of
three years.)

	2.	 	Radio and Television Program Production License

	 	Ø	 	Radio and Television Program Production License

Name of Entity: Tianjin Times Tosun Media Development Co., Ltd.;

Business Governing Authority: Tianjin TV Station;

Legal Representative: Wan Ke;

Address: No.8 Xinghua 7th Branch Road, Xiqing Economic Development Zone, Tianjin.

Nature: Limited enterprise;

Operation Way: Radio and television program production;

Business Scope: Production of television program, special topic, variety show and cartoon;

Valid Term: From 30 April 2007 to 1 April 2009.

 

 

Schedule L

Jiasen Cooperation Agreement

[English
Translation Only]

Cooperation Contract for Digital Pay Channels

This
Cooperation Contract for Digital Pay Channels (the
“Contract”) is made on this 28th day of
September, 2008 in Shanghai, the People’s Republic of China (the “PRC”) between the following
parties:

	 	 	 
	Party A:

	 	Tianjin Television Station
	Address:

	 	No. 143, Weijin Road, Heping District, Tianjin
	Legal Representative:

	 	WAN Ke
	 
	 	 
	Party B:

	 	Shanghai Jiasen Advertising Co, Ltd.
	Address:

	 	Room 108, Building 2, No.188, Lane 1035, Qilianshan Road, Putuo District, Shanghai
	Legal Representative:

	 	ZHOU Kaidian
	 
	 	 
	Party C:

	 	Tianjin Shidai Tianchuang Media Development Co, Ltd.
	Address:

	 	No.8 Xinghua 7th Branch Road, Xiqing Economic Development Zone, Tianjin
	Legal Representative:

	 	KONG Lingquan

(In this Contract, Party A, Party B and Party C may be referred to as a “party”or collectively as
the “parties”)

WHEREAS:

	(1)	 	Party A is an independent legal person and running four nationwide broadcasting digital pay
channels, namely Times Household (Radio and Television Pay Channel License No. PTC102050),
Times Travel (Radio and Television Pay Channel License No. PTC102052), Times Food (Radio and
Television Pay Channel License No. PTC102051) and Times Fashion (Radio and Television Pay
Channel License No. PTC102053) (collectively “Four Digital Pay Channels”);
	 
	(2)	 	Party B is a company with limited liabilities incorporated and existing under the PRC law and
proposed to expand its business in the relevant digital pay channels business;

1

 

	(3)	 	Party C is a company with limited liabilities incorporated and existing under the PRC law,
whose registered capital is RMB55,000,000 with a business scope of radio and television
program production (production of television dramas, subject programs, entertainment programs
and cartoons, to be operated according to the radio and television program production license
valid through 1st April 2009); to utilize digital channels to provide users with
paid services; advertising; meeting services; sale and distribution of stationery,
communication equipment (excluding cell phone, pager) and network equipment; network and
systems debugging and installation (subject to special regulations of the PRC on special
business operations). Party C has rich experiences in the business of advertising agency,
programs production and services and marketing of digital pay channels;
	 
	(4)	 	Party A holds 51% of the equity interests in Party C and Party B will acquire 49% of the
equity interests in Party C through equity transfer, which has been already agreed by Party A.
Party A has granted Party C with the exclusive operation rights over the Four Digital Pay
Channels and wishes to continue the aforesaid exclusive cooperation after Party B’s becoming a
shareholder of Party C;
	 
	(5)	 	Party C holds 9.225% of the equity interests in Dingshi Digital Television Media Co. Ltd
(“Dingshi”), a company with limited liabilities incorporated and existing under the PRC law.
Dingshi is entitled to carry out business of composing, broadcasting, transmitting, operating
and managing digital pay television channels and digital radio channels.

NOW, THEREFORE, in principles of sharing risks and profits, equal and mutual benefit, after
friendly consultation, the parties hereby agree as follows:

	1.	 	Arrangement of Channel Cooperation
	 
	1.1	 	Party A agrees to appoint Party C as its exclusive cooperator to jointly operate the Four
Digital Pay Channels.
	 
	1.2	 	Party A agrees that it shall appoint Party C as its exclusive cooperator for any new digital
pay channels being granted to it or in any digital pay

2

 

	 	 	television business.
	 
	1.3	 	Party A shall not carry out the businesses mentioned in Clause 1.1 and 1.2 above by itself or
cooperate with any other third party to operate such businesses. Party A shall not run any
other channels with similar content with those channels being operated by Party C. Party B
shall not, unless cooperate with Party A, carry out the businesses mentioned in Clause 1.1 and
1.2 above or run any other channels with similar content with those channels being operated by
Party C.
	 
	1.4	 	If Party C proposes to add new digital pay channels and provides a complete business plan,
Party A shall review the business plan and apply for new channel license pursuant to the
business plan as soon as possible.
	 
	1.5	 	Party C shall be entitled to appoint any other third party (including but not limited to the
joint venture companies set forth in Clause 3.3) to manage the digital pay channel business.
	 
	1.6	 	Party C may cooperate with qualified operating entities to carry out the businesses of
composing and telecasting of the Four Digital Pay Channels, marketing agency, channel signal
transmission, pay channel connection, marketing of the digital pay television programs and
other information services.
	 
	1.7	 	Party C may provide topic-choosing and production services for the Four Digital Pay Channels
and provide all programs and contents for telecasting of the Four Digital Pay Channels. Party
C shall bear the production costs and personnel expenses in relation to such programs and
contents. The copyrights over such programs and contents shall be awarded to Party C and Party
C shall enjoy the rights and be responsible for the liabilities
therefrom (or such copyrights and related rights and responsibilities
shall be subject to the agreements between Party C and third party).
	 
	1.8	 	Party C shall be entitled to carry out any exclusive operation utilizing or based on the Four
Digital Pay Channels, which includes without limitation to holding functions and advertising
(unless prohibited by law).
	 
	1.9	 	Party A confirms that Party C has settled the relevant payments with Party A under the two
existing Agreements (valid from 1st March 2005 to 28th February 2010 and from October 2004 to
October 2009) and in accordance

3

 

	 	 	with the actual operation before the execution date of this Contract. Party C provided programs and contents to the digital pay channels and benefit,
directly or indirectly, Party A in accordance with this Contract. Unless otherwise agreed in
this Contract or by the parties in another agreement, Party C shall not be required to pay
Party A any fee in relation with Party A’s granting of the operation of business of the Four
Digital Pay Channels to it.
	 
	1.10	 	Unless otherwise agreed in this Contract or agreed by Party A and Party C in written after
execution of this Contract, Party A agrees that Party C shall be entitled to enjoy all revenue arising
from its utilization of the Four Digital Pay Channels and other relevant collateral rights
during the term of cooperation, including without limitation fees collected from users of
the Four Digital Pay Channels and advertising revenues.

	2.	 	Operation of Party C
	 
	2.1	 	The board of directors of Party C shall comprise of five (5) directors, among which, three
(3) directors shall be appointed by Party A and two (2) shall be appointed by Party B. Party C
shall have one (1) general manager and two (2) deputy general managers, among which Party A
may appoint the general manager and one of the deputy general managers. Party B may appoint
one deputy general manager who shall be the executive deputy general manager. When Party B
becomes a shareholder of Party C, Party B may appoint the financial officer of Party C, who
shall hold the only one financial chop of Party C (Income and payment of Party C and its bank
account shall be subject to confirmation of both the legal representative chop and financial
chop).
	 
	2.2	 	The general manager shall be responsible for the operation of Party C. All contracts and
expenses shall not be valid unless signed by both the general manager and the executive deputy
general manager appointed by Party B.
	 
	2.3	 	The annual budge of Party C will be prepared by the management and shall be executed after
approved by the board of directors.
	 
	2.4	 	Party A confirms that the items and amount of substantial expenses in the coming two years
for operating the Four Digital Pay Channels shall be basically in line with the list in
Appendix 1 and shall not exceed the amount

4

 

	 	 	therein. Party A and Party B confirm that Appendix 1 is the approximate expense amounts for the coming two years.
	 
	2.5	 	Party B proposed to invest not less than RMB130,000,000 by means it confirms into the Four
Digital Pay Channels after its acquisition of 49% of equity interests in Party C.

	3.	 	Rights and Obligations of the Parties
	 
	3.1	 	Rights and Obligations of Party A

	 	3.1.1	 	Party A warrants the validity, legality and continuity of the relevant
licenses (including but not limited to the nationwide telecasting) of the Four Digital
Pay Channels, namely Times Household, Times Travel, Times Food and Times Fashion,
during the terms of this Contract. Party A undertakes to complete the renewal process
for each of the Radio and Television Pay Channels Licenses before its expiry in
accordance with the relevant laws and regulations in order to assure the telecasting
of the Four Digital Pay Channels.
	 
	 	3.1.2	 	Party A shall cooperate with Party C to apply and complete the repositioning
of two channels among the Four Digital Pay Channels to North American Sport and
Fighting and change the names of the two channels to reflect such repositioning. In
the event that the aforesaid change cannot be completed before 15th December 2008,
Party A agrees that Party B may sell all or part of its equity interests in Party C to
any third party and suspend its repayment of RMB5,500,000 to Party C under Clause
3.2.1 below provided that such amount shall remain as a debt owed by Party B to Party
C (free of interest). In addition, Party B or Party C may consult with Party A and
change the name of the other two digital pay channels pursuant to the operation
situation.
	 
	 	3.1.3	 	During the term of this Contract, Party A shall continue its provision of
all supports to Party C at least not lower than the current or previous level, which
includes but not limited to supports on provision of equipments, programs production
and technical personnel. Party C may continue to use the equipments

5

 

	 	 	 	being provided by Party A after execution of this Contract (a list of the equipments currently used by
Party C is attached as Appendix 2). For any new equipment to be used by Party C, Party
A shall charge Party C at its internal department price (i.e. the price Party A
charges its internal departments instead of the market price). The new equipments to
be used by Party C shall be subject to approval of the board of directors of Party C.
	 
	 	3.1.4	 	Business other than the digital pay business before or after the execution
of this Contract shall be deemed as Party A’s independent business, operation and
liabilities of which shall be borne by Party A. The operation includes the funds for,
rights and interests of the business and the liabilities include the liabilities
regarding personnel, finance and property.
	 
	 	3.1.5	 	Party A shall have the final review and verification rights over the content
of the Four Digital Pay Channels and any content to be telecasted shall be subject to
the final review and verification of Party A (which shall also include Party A’s
immediate review and verification rights during telecasting). Party A shall not be
liable for any loss of Party C during its exercise of such review and verification
rights.
	 
	 	3.1.6	 	Upon direction from governing authorities and in case of emergent incidents,
Party A shall have the right to change the plan of telecasting and shall not be liable
for any loss suffered by Party C therefrom.
	 
	 	3.1.7	 	In case of termination of Party C for any reason, Party A will revoke all
rights being granted to Party C and such rights shall not be deemed by any means as
the liquidated assets of Party C in the liquidation.
	 
	 	3.1.8	 	Party A agrees that, upon written request from party B or Party C, it shall
confirm the rights of any third party or the joint venture companies being authorized
by Party C pursuant to the provisions of this Contract by means of issuance of
document, declaration, power of attorney or execution of contracts.

6

 

	 	3.1.9	 	Party A shall not transfer out its equity interests in Party C without prior
written consent from Party B.

	3.2	 	Rights and Obligations of Party B

	 	3.2.1	 	Subject to Clause 3.1.2 above, Party B shall be responsible for repayment of
the debt in the amount of RMB10,500,000 owed by the previous shareholder to Party C
when it acquires the equity interests. Party B shall repay such debt in two
installments: RMB5,000,000 shall be repaid within seven working days following Party
B’s acquisition of 49% of equity interests in Party C (i.e. when Party B is registered
as holder of 49% of equity interests in Party C); and RMB5,500,000 shall be repaid on
or before 25th December 2008. In event of its failure in repaying the
aforesaid debt, Party B shall be responsible for interest on the
outstanding amount at the rate equal to the
bank facilities at the time of default.
	 
	 	3.2.2	 	Upon its acquisition of the 49% of equity interests in Party C, Party B
shall enjoy all rights and be responsible for all obligations and liabilities in
relation with such 49% of equity interests.
	 
	 	3.2.3	 	Party B shall be entitled to request Party C to audit the data reports of
Dingshi or other local network on the numbers of paid users and free users, landing
situation and promoting status.
	 
	 	3.2.4	 	Party B shall be entitled to appoint one person to be the supervisor of
Dingshi.
	 
	 	3.2.5	 	Without confirmation from Party A, Party B shall not announce any
information and news regarding Party A and Party C (except as required by laws,
government authorities, courts or relevant stock exchanges), failing which Party B
shall be responsible for all sequences arising therefrom.
	 
	 	3.2.6	 	Except for the provision in Clause 3.1.2 above, Party B shall not transfer
out its equity interests in Party C without prior written consent from Party A.

7

 

	 	3.2.7	 	Party B shall assure the basic operation of the Four Digital Pay Channels by
Party C (i.e. Party B shall assure that Party C is capable to settle the satellite
fees, cable transmission fees and related management expenses required for telecasting
of the Four Digital Pay Channels), based on which, Party A assures the rights of Party
C to operate the digital pay channels under this Contract.

	3.3	 	Rights and Obligations of Party C

	 	3.3.1	 	In accordance with the relevant laws and regulations, Party A and Party B
agree that Party C may incorporate program production companies (“Joint Venture
Companies”) with the nominees of Party B for managing each of the digital pay channels
it is entitled to operate. Party C shall enter into agreements with each of the Joint
Venture Companies to authorize each of the Joint Venture Companies to exclusively
manage each of the digital pay channels. The Joint Venture Companies shall be
responsible for and enjoy all revenue from the operating funds, programs contents,
sale of the channel, advertising, functions holding, collateral products and other
operation business of the relevant digital pay channel. Party C, as the supervisor,
shall have the rights and be responsible for editing, content reviewing and handling
application process for the channels.
	 
	 	3.3.2	 	Party C shall incorporate the Joint Venture Companies respectively as agreed
in Clause 3.3.1 above within 30 days following Party B’s becoming a shareholder
holding 49% of its equity interests.
	 
	 	3.3.3	 	Party C and the Joint Venture Companies shall agree in the respective
cooperation agreement that Party C undertakes to assist the relevant Joint Venture
Companies to enter into digital pay television telecasting contracts with Dingshi or
other local network provided that Party C shall request Dingshi or other local network
as parties to the telecasting contracts to pay the revenue arising from the relevant
digital pay channel directly to the accounts of the Joint Venture Companies upon
incorporation of the Joint Venture Companies.

8

 

	4.	 	Term of Cooperation
	 
	 	 	This Contract shall be valid during the whole term when both Party A and Party B are
shareholders of Party C. During the term of this Contract, Party B and Party C shall have
the pre-emptive rights when Party A opens other business.

	5.	 	Representation and Warranties

	5.1	 	Party A, Party B and Party C respectively represent and warrant to the other parties that it
has the power and capabilities and has been duly authorized to execute and perform this Contract.
Its execution and performance of this Contract will not contravene the provision of PRC
law, its constitutional documents, any other contract and agreements it is a party or any
other existing obligations existing before execution of this Contract.
	 
	5.2	 	Party A, Party B and Party C shall perform this Contract in the principle of honesty and
trust. The parties agree that the validity of this Contract will not be influenced by merger,
division, change of name, setting up joint venture or cooperative venture of Party A and/or
Party B. The performance of this Contact shall not be influenced by change of governing
authority of Party A.
	 
	5.3	 	The parties shall procure its shareholders meeting and board of directors to issue
resolutions as required for performance of this Contract.

	6.	 	Liabilities for Breach of Contract
	 
	 	 	In case that any party commits a breach of this Contract except due to impact of force
majeure and causes damages to the other parties, the other parties may request the
breaching party to compensate their losses incurred.

	7.	 	Disputes Resolution
	 
	 	 	In case of dispute arising from the performance of this Contract or objection from any
party to any term of this Contract, the parties shall consult with each other for solution.
If no solution is reached through consultation, any

9

 

	 	 	party may submit the dispute to China
International Economic and Trade Arbitration Commission for arbitration in accordance with
the Commission’s arbitration rules in effect at that time. The arbitration shall be held in
Beijing in Chinese. The arbitration award shall be final and binding upon the parties.

	8.	 	Miscellaneous

	8.1	 	This Contract shall become into effect upon execution of the parties. This Contact contains
all understanding between the parties on the subject matter of this Contract and shall replace
all previous warranties, understandings, contracts or other undertakings, verbal or written,
of the parties.
	 
	8.2	 	This Contract shall be governed by and construed with the PRC law.
	 
	8.3	 	This Contract is prepared in six (6) original copies, each party holding two (2). Each copy
shall have the same legal effect.

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

			
	 
	 	 
	Party A:

	 	Tianjin Television Station
	 
	 	 
	Legal Representative or Authorized Delegate:

	(Signature and Chop)
	 	 
	 
	 	 
	Party B:

	 	Shanghai Jiasen Advertising Co, Ltd.
	 
	 	 
	Legal Representative or Authorized Delegate:

	(Signature and Chop)
	 	 
	 
	 	 
	Party C:

	 	Tianjin Shidai Tianchuang Media Development Co, Ltd.
	 
	 	 
	Legal Representative or Authorized Delegate:

	(Signature and Chop)
	 	 

10

 

[English
Translation Only]

	 	 	 	 	 
	Appendix 1
	 	Budget and Costs
	 	 

Appendix 1: Budget and Cost Statement

	 	 	 	 	 	 	 
	Description	 	Amount	 	Amount
	Office management fees

	 	1,360,000 Yuan/year
	 	 	1,360,000	 
	Rent
	 	360,000 Yuan/year	 	 	360,000	 
	Administrative personnel
	 	600,000 Yuan/year	 	 	600,000	 
	Office fees
	 	400,000 Yuan/year	 	 	400,000	 
	Business maintenance expense

	 	300,000 Yuan/year
	 	 	300,000	 
	Business personnel expense
	 	250,000 Yuan/year	 	 	250,000	 
	Business maintenance expense
	 	50,000 Yuan/year	 	 	50,000	 
	Public relation fees
	 	200,000 Yuan/year	 	 	200,000	 
	Channel maintenance fees
	 	Estimate: 6,880,000yuan	 	 	6,880,000	 
	Channel transmission fees
	 	250,000
Yuan/year/channel,

1 million Yuan/year in total
	 	 	1,000,000	 
	Satellite Transmission fees for channel
	 	1,370,000 Yuan/year,

5,480,000 Yuan/year in total	 	 	5,480,000	 
	Channel maintenance fees

	 	400,000 Yuan/year
	 	 	400,000	 
	Technology maintenance fees
	 	180,000 Yuan	 	 	180,000	 
	Administrative personnel for broadcasting library
	 	180,000 Yuan/year	 	 	180,000	 
	Expenses for TV programme edit and review
	 	160,000-32,000 Yuan/year	 	 	320,000	 
	Miscellaneous
	 	 	 	 	760,000	 
	 
	Total
	 	 	 	 	10,000,000	 
	 

11

 

Appendix 2: Equipment List of Tianjin Shidai Tianchuang Media development Co. Ltd

	 	 	 	 	 	 	 	 	 	 	 
	Equipment description	 	Unit	 	Quantity	 	Specification	 	Operation
location
	4 sets of digital
program broadcasting
transmitter; 4 sets of
digital amplifiers, 4
sets of digital
transmission encoding
equipment, combined as 4
sets of digital-control
broadcasting platform

	 	 	 	 	1	 	 	 	 	Transmitter room
	4 sets of digital video
storage library. Each
set is of independent
array. Storage, edit and
broadcasting are
independent.

	 	 	 	 	1	 	 	 	 	Transmitter room
	Digital broadcasting
room, surveillance and
broadcasting room,
digital control and
broadcasting room,
digital edit and
broadcasting room

	 	 	 	 	1	 	 	 	 	Transmitter room
	Digital broadcasting,
surveillance and
broadcasting personnel.
Amplifier and
transmission circuit
personnel.

	 	 	 	 	1	 	 	 	 	Transmitter room
	Post-production edit and
broadcasting room,
including digital input,
nonlinearity edit and
integration room for
mutual edit

	 	 	 	 	1	 	 	 	 	Transmitter room
	Nonlinear computer

	 	Set
	 	 	1	 	 	 	 	Transmitter room
	Nonlinear computer

	 	Set
	 	 	1	 	 	 	 	Transmitter room
	PC nonlinear editor

	 	Set
	 	 	1	 	 	iPod
	 	Transmitter room
	Video equipment

	 	Set
	 	 	1	 	 	 	 	Transmitter room
	Nonlinear editor

	 	Set
	 	 	1	 	 	 	 	Transmitter room
	Graphics workstation system 3D
	 	Set
	 	 	1	 	 	AMD3000+(939)/1G/200G	 	Transmitter room
	Post-production nonlinear edit equipment
	 	Package
	 	 	1	 	 	TARGA 3100
	 	Transmitter room
	Wide-angle lens

	 	Piece
	 	 	1	 	 	JG-0.5*100	 	Company
machine room
	Disk recorder
	 	Set
	 	 	1	 	 	DVD-R25 Malata
	 	Company
machine room
	Wide-angle lens
	 	Piece
	 	 	1	 	 	JG-0.5*100
	 	Company
machine room
	Wide-angle lens
	 	Piece	 	 	1	 	 	JG-0.5*100
	 	Company
machine room
	Satellite antenna system
	 	Package	 	 	1	 	 	5100CI
	 	Transmitter room
	High-definition DV camera

	 	Package
	 	 	1	 	 	HRR-81C
	 	Transmitter room

12

 

	 	 	 	 	 	 	 	 	 	 	 
	Equipment description	 	Unit	 	Quantity	 	Specification	 	Operation
location
	Nonlinear editor

	 	Package
	 	 	1	 	 	Avid
	 	Transmitter room
	Graphics workstation 3D computer
	 	Set	 	 	1	 	 	 	 	Transmitter room
	Nonlinear edit system
	 	Package	 	 	1	 	 	Self-configuration	 	Transmitter room
	Nonlinear edit system

	 	Package
	 	 	1	 	 	Self-configuration
	 	Transmitter room

13

 

Schedule M

Equity Transfer Documents

	1.	 	Shareholders’ resolution of Jiasen approving the transfer of Jiasen Equity Interests in
Jiasen, change of executive director and legal representative and amendment of the articles of
association of Jiasen;

	2.	 	Director’s resolution of Jiasen approving the transfer of Jiasen Equity Interests in Jiasen,
change of executive director and legal representative and amendment of the articles of
association of Jiasen;

	3.	 	Agreement on transfer of Jiasen Equity Transfers in Jiasen from existing shareholder of
Jiasen to XFM Nominee;

	4.	 	Acknowledgement of receipt of RMB100,000 from existing shareholder of Jiasen to XFM Nominee;
and

	5.	 	Amended articles of association of Jiasen.

 

 

Schedule N

Internal Control Agreements

	1.	 	Equity pledge agreement between XFM Nominees, Jiasen and HBLD relating to pledge of all of
the equity interest in Jiasen by XFM Nominees in favour of HBLD;

	2.	 	Capital contribution certificate and shareholders’ registry to be issued to XFM Nominees;
	 
	3.	 	Exclusive equity purchase option agreement between XFM Nominees, Jiasen and HBLD;

	4.	 	Subrogation agreement between XFM Nominees, Jiasen and HBLD.

 

 

[English
Translation Only]

Schedule O

Financial Statements of SDTC

Appendix VI

Balance Sheet

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tianjin Shidai Tianchuang Co. Ltd.	 	July 31, 2008	 	
Unit: yuan
	 
	Assets	 	Line No.	 	at beginning of year	 	at end of year	 	Liabilities
and owner’s
equity	 	Line No.	 	At beginning of year	 	at end of year
	Current Assets:

	 	 	 	 	 	 	 	 	 	 	 	 	 	Current
liabilities:
	 	 	 	 	 	 	 	 	 	 	 	 
	Cash and cash equivalents

	 	 	1	 	 	 	2,955,138.21	 	 	 	817,319.50	 	 	Short-term loans

	 	 	36	 	 	 	0.00	 	 	 	0.00	 
	Short-term Investment

	 	 	2	 	 	 	0.00	 	 	 	0.00	 	 	Notes payable

	 	 	37	 	 	 	0.00	 	 	 	0.00	 
	Internal
Transactions
	 	 	3	 	 	 	 	 	 	 	 	 	 	Accounts payable

	 	 	38	 	 	 	41,105.00	 	 	 	41,105.00	 
	Notes receivable

	 	 	4	 	 	 	0.00	 	 	 	0.00	 	 	Advance from clients

	 	 	39	 	 	 	0.00	 	 	 	0.00	 
	Accounts receivable

	 	 	5	 	 	 	200,000.00	 	 	 	411,800.00	 	 	Other payables

	 	 	40	 	 	 	-112,733.77	 	 	 	-208,131.40	 
	Less:Provision for bad debts

	 	 	6	 	 	 	0.00	 	 	 	0.00	 	 	Accounts payable-related parties

	 	 	41	 	 	 	 	 	 	 	 	 
	Net Accounts receivable

	 	 	7	 	 	 	200,000.00	 	 	 	411,800.00	 	 	Accrued payroll

	 	 	42	 	 	 	0.00	 	 	 	0.00	 
	Accounts prepaid

	 	 	8	 	 	 	20,000.00	 	 	 	0.00	 	 	Accrued welfarism

	 	 	43	 	 	 	0.00	 	 	 	0.00	 
	Interest receivable

	 	 	9	 	 	 	 	 	 	 	 	 	 	 	 	 	44	 	 	 	106,469.04	 	 	 	65,812.93	 
	Dividend receivable

	 	 	10	 	 	 	 	 	 	 	 	 	 	Divedend payable

	 	 	45	 	 	 	 	 	 	 	 	 
	Other receivables

	 	 	11	 	 	 	27,891,012.56	 	 	 	26,524,751.28	 	 	Other fund in conformity with paying

	 	 	46	 	 	 	8,355.77	 	 	 	4,685.99	 
	Accounts receivable-related parties

	 	 	12	 	 	 	 	 	 	 	 	 	 	Accrued expense

	 	 	47	 	 	 	0.00	 	 	 	0.00	 
	Inventory

	 	 	13	 	 	 	0.00	 	 	 	0.00	 	 	Long-term liabilities due in 1 year

	 	 	48	 	 	 	 	 	 	 	 	 
	of which:Work-in-process

	 	 	14	 	 	 	0.00	 	 	 	0.00	 	 	Other current liabilities

	 	 	49	 	 	 	 	 	 	 	 	 
	Expenses
to be amortized

	 	 	15	 	 	 	50,735.00	 	 	 	96,199.50	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other current assets

	 	 	17	 	 	 	0.00	 	 	 	0.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total current assets

	 	 	18	 	 	 	31,116,885.77	 	 	 	27,850,070.28	 	 	Total current liabilities

	 	 	50	 	 	 	43,196.04	 	 	 	-96,527.48	 
	Long-term
investment

	 	 	 	 	 	 	 	 	 	 	 	 	 	Long-term liabilities
	 	 	 	 	 	 	 	 	 	 	 	 
	Long-term equity investment
	 	 	19	 	 	 	5,000,000.00	 	 	 	5,000,000.00	 	 	Long-term loans

	 	 	51	 	 	 	0.00	 	 	 	0.00	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Assets	 	Line No.	 	at beginning of year	 	at end of year	 	Liabilities
and owner’s
equity	 	Line No.	 	At beginning of year	 	at end of year
	Long-term
creditor right investment
	 	 	20	 	 	 	 	 	 	 	 	 	 	Bond payable

	 	 	52	 	 	 	0.00	 	 	 	0.00	 
	Total Long-term investment

	 	 	21	 	 	 	5,000,000.00	 	 	 	5,000,000.00	 	 	Long-term payables

	 	 	53	 	 	 	0.00	 	 	 	0.00	 
	Fixed assets

	 	 	 	 	 	 	0.00	 	 	 	 	 	 	Deferred rental income

	 	 	54	 	 	 	0.00	 	 	 	0.00	 
	 

	 	 	22	 	 	 	1,077,842.45	 	 	 	1,113,306.45	 	 	Other long-term liabilities

	 	 	55	 	 	 	 	 	 	 	 	 
	Less:Accumulated depreciation

	 	 	23	 	 	 	460,163.49	 	 	 	581,743.27	 	 	Total long-term liabilities

	 	 	56	 	 	 	0.00	 	 	 	0.00	 
	Net
Value of Fixed Assets

	 	 	24	 	 	 	617,678.96	 	 	 	531,563.18	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Disposal of fixed assets

	 	 	25	 	 	 	0.00	 	 	 	0.00	 	 	Defered tax:
	 	 	 	 	 	 	 	 	 	 	 	 
	Project goods and material

	 	 	26	 	 	 	 	 	 	 	 	 	 	Defered tax credit

	 	 	57	 	 	 	0.00	 	 	 	0.00	 
	Construction-in-process

	 	 	27	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net
loss of fixed assests to be disposed of

	 	 	28	 	 	 	 	 	 	 	 	 	 	Total liabilities

	 	 	58	 	 	 	43,196.04	 	 	 	-96,527.48	 
	Total fixed assets

	 	 	29	 	 	 	617,678.96	 	 	 	531,563.18	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	Owner’s equity:
	 	 	 	 	 	 	 	 	 	 	 	 
	Intangible assets & deferred assets:

	 	 	 	 	 	 	 	 	 	 	 	 	 	Paid-up capital

	 	 	59	 	 	 	55,000,000.00	 	 	 	55,000,000.00	 
	Intangible assets

	 	 	30	 	 	 	18,000.00	 	 	 	28,300.00	 	 	Capital reserves

	 	 	60	 	 	 	0.00	 	 	 	0.00	 
	Long-term deferred expenses

	 	 	31	 	 	 	1,666,666.80	 	 	 	1,083,333.49	 	 	Surplus reserves

	 	 	61	 	 	 	0.00	 	 	 	0.00	 
	Other long-term assets

	 	 	32	 	 	 	 	 	 	 	 	 	 	of which: Public welfare fund

	 	 	62	 	 	 	0.00	 	 	 	0.00	 
	Total intangible assets & deferred assets

	 	 	33	 	 	 	1,684,666.80	 	 	 	1,111,633.49	 	 	Undistributed profits

	 	 	63	 	 	 	-16,623,964.51	 	 	 	-20,410,205.57	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	Total owner’s equity
	 	 	64	 	 	 	38,376,035.49	 	 	 	34,589,794.43	 
	Deferred tax:

	 	 	 	 	 	 	 	 	 	 	 	 	 	Minority shareholder’s interest

	 	 	65	 	 	 	 	 	 	 	 	 
	Deferred tax debit

	 	 	34	 	 	 	0.00	 	 	 	0.00	 	 	 	 	 	66	 	 	 	 	 	 	 	 	 
	Total assets

	 	 	35	 	 	 	38,419,231.53	 	 	 	34,493,266.95	 	 	Total liabilities and owner’s equity

	 	 	67	 	 	 	38,419,231.53	 	 	 	34,493,266.95EX-4.58

Exhibit 4.58

Xinhua Finance Media Limited

and

Chung Cheng Co., Ltd.

 

MASTER AGREEMENT

IN RESPECT OF CERTAIN

ADVERTISING BUSINESSES

 

2008

www.klgates.com

 

 

THIS
MASTER AGREEMENT (this “Agreement”) is made on
the
30th

day of
September 2008

BETWEEN

	 	 	 	Xinhua Finance Media Limited, a company incorporated under the
laws of the Cayman Islands with registration number 157511 and its
registered address located at Century Yard, Cricket Square, Hutchins
Drive, P.O. Box 2681GT, George Town, Grand Cayman, Cayman Islands,
British West Indies (“XFM”)

AND

	 	 	 	Chung Cheng Co., Ltd., a company incorporated under the laws of
Samoa with a registered address located at Level 12, Lotemau Centre,
Vaea Street, Alpa, Samoa (the “Chung Cheng”)

WHEREAS

	A.	 	XFM desires to acquire exclusive rights to advertise on various channels from various parties
and Chung Cheng wishes to procure its nominees or affiliates to grant to XFM or XFM Nominee
such rights in accordance with the terms and conditions set forth in this Agreement.

	B.	 	Chung Cheng agrees to procure such parties to enter into cooperative agreements or other
agreements including the XFM Agreements with XFM or XFM Nominee whereby such parties will
grant to XFM or XFM Nominee the rights, benefits, titles and interests in and to the XFM
Agreements.

NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth herein, the
sufficiency, adequacy and receipt of which are hereby acknowledged, XFM and Chung Cheng hereby
agree as follows:

	1.	 	DEFINITIONS

	1.1	 	Definitions. The following terms when used herein shall have the meanings ascribed
to them below:

	 	 	 	 	 
	 

	 	“Balance First Closing Consideration”
	 	has the meaning ascribed to it in Clause 2.3(a);
	 
	 	 	 	 
	 

	 	“BCGC”
	 	means Beijing University Career Guidance;
	 
	 	 	 	 
	 

	 	“Beijing Campuses”
	 	means, collectively, not less than thirty (30)
campuses of the university in Beijing;
	 
	 	 	 	 
	 

	 	“Billboards”
	 	has the meaning ascribed to it in Clause 3.3;

 

 

	 	 	 	 	 
	 

	 	“Billboards Operational Rights”
	 	has the meaning ascribed to Exclusive Advertising and
Events Organizing Rights
(“”) under the
XFM Tongji Agreement;
	 
	 	 	 	 
	 

	 	“Business Day”
	 	means any Monday, Tuesday, Wednesday, Thursday and
Friday on which banks in Hong Kong or the PRC are
required or permitted by laws to be open and shall not
include a day on which normal banking hours are
shortened or interrupted by typhoon, rain or similar
warnings;
	 
	 	 	 	 
	 

	 	“Claimant”
	 	has the meaning ascribed to it in Clause 13.3(a);
	 
	 	 	 	 
	 

	 	“Closing”
	 	means, collectively, the First Closing and the Second
Closing;
	 
	 	 	 	 
	 

	 	“Closing Deliverable

Agreements”
	 	means the respective agreements or documents required
to be delivered by Chung Cheng under this Agreement as
conditions to First Closing or Second Closing, as the
case may be;
	 
	 	 	 	 
	 

	 	“Consent”
	 	means any consent, approval, permit, license, order,
or authorization of or registration, declaration, or
filing with or exemption by Governmental Entity;
	 
	 	 	 	 
	 

	 	“Control”,
“Controls”, “Controlled”, or any

correlative term
	 	means the possession, directly or
indirectly, of the power to direct or cause the direction of the management of a Person, whether through the ownership
of voting securities, by contract, credit arrangement
or proxy, as trustee, executor, agent or otherwise.
For the purpose of this definition, a Person shall be
deemed to Control another Person if such first Person,
directly or indirectly, owns or holds more than fifty
(50%) Per Cent of the voting equity interests in such
other Person;
	 
	 	 	 	 
	 

	 	“CY Advertising”
	 	means Zhong Qing Net Advertising (Beijing) Co., Ltd.
(), a limited liability company
incorporated under the laws of the PRC with a
registered address at Room 705, No. 38, Chao Wai Main
Street, Chaoyang District, Beijing, China;
	 
	 	 	 	 
	 

	 	“CY Intranet Operational Right”
	 	means the right to post and distribute content on (i)
the video and audio distribution network based on the
China Education and Research Network (“CERN”), the
broadband network infrastructure built in schools,
universities and other education institutions; (ii)
its related

2

 

	 	 	 	 	 
	 

	 	 
	 	mobile network; and (iii) such other media or
distribution channels the detailed definition of which
shall be set forth in the CY Intranet Agreement;
	 
	 	 	 	 
	 

	 	“CY Network”
	 	means Zhong Qing Network Technology (Beijing) Co.,
Ltd. (), a limited liability
company incorporated under the laws of the PRC with a
registered address at 16/F, 17/F, Chang Bao Building,
An Hua Bei Li, Guang Qu Men Nei Street, Chongwei
Disrict, Beijing, China;
	 
	 	 	 	 
	 

	 	“CY Websites”
	 	has the meaning ascribed to Zhong
Qing Net (“”)
in the XFM CYN Agreement;
	 
	 	 	 	 
	 

	 	“CY Website Operational Rights”
	 	has the meaning ascribed to Advertising and Events
Organizing Rights
(“”) in the XFM CYN
Agreement;
	 
	 	 	 	 
	 

	 	“Disclosing Party”
	 	has the meaning ascribed to it in Clause 12.4;
	 
	 	 	 	 
	 

	 	“Dispute Notice”
	 	has the meaning ascribed to it in Clause 13.3(a);
	 
	 	 	 	 
	 

	 	“Down Payment”
	 	has the meaning ascribed to it in Clause 2.3(a)(i);
	 
	 	 	 	 
	 

	 	“Encumbrance”
	 	means and includes any interest or equity of any
person (including, without prejudice to the generality
of the foregoing, any right to acquire, option or
right of pre-emption) or any mortgage, charge, pledge,
lien or assignment or any other encumbrance, priority
or security interest or arrangement of whatsoever
nature over or in the relevant property;
	 
	 	 	 	 
	 

	 	“FCPA”
	 	means the Foreign Corrupt Practices Act of the United
States of America;
	 
	 	 	 	 
	 

	 	“First Closing”
	 	has the meaning ascribed to it in Clause 2.5;
	 
	 	 	 	 
	 

	 	“First Closing Conditions”
	 	has the meaning ascribed to it in Clause 3.1;
	 
	 	 	 	 
	 

	 	“First Closing Consideration”
	 	has the meaning ascribed to it in Clause 2.3(a);
	 
	 	 	 	 
	 

	 	“First Closing Date”
	 	has the meaning ascribed to it in Clause 2.5;
	 
	 	 	 	 
	 

	 	“Governmental Entity”
	 	means any court, regulatory body, administrative agency

3

 

	 	 	 	 	 
	 

	 	 	 	or commission or other governmental authority or
instrumentality, whether domestic or foreign;
	 
	 	 	 	 
	 

	 	“HCGC”
	 	means Hubei University Career Guidance Center;
	 
	 	 	 	 
	 

	 	“Hong Kong”
	 	means the Hong Kong Special Administrative Region of
the PRC;
	 
	 	 	 	 
	 

	 	“Hubei Campuses”
	 	means, collectively, not less than thirty (30)
campuses of the university in Hubei;
	 
	 	 	 	 
	 

	 	“IFRS”
	 	means the International Financial Reporting Standards
issued by the International Accounting Standards Board
from time to time;
	 
	 	 	 	 
	 

	 	“Indemnified Party”
	 	has the meaning ascribed to it in Clause 10.4;
	 
	 	 	 	 
	 

	 	“Indemnifying Party”
	 	has the meaning ascribed to it in Clause 10.4;
	 
	 	 	 	 
	 

	 	“JV”
	 	means the joint venture company to be established
pursuant to Clause 4;
	 
	 	 	 	 
	 

	 	“Losses”
	 	has the meaning ascribed to it in Clause 10.1;
	 
	 	 	 	 
	 

	 	“LCD Screens”
	 	has the meaning ascribed to Terminal LCD under the XFM
Hezhong Agreement;
	 
	 	 	 	 
	 

	 	“Magazine”
	 	has the meaning ascribed to “” under the XFM
Tianren Agreement;
	 
	 	 	 	 
	 

	 	“Magazine Operational Rights”
	 	has the meaning ascribed to Advertising and Operations
Rights under the XFM Tianren Agreement;
	 
	 	 	 	 
	 

	 	“Market Value”
	 	means, with respect to XFM Shares, the average of the
closing price of XFM Shares or its equivalent in
American Depository Receipts or other tradable
instruments representing such shares on NASDAQ for the
fifteen (15) trading days up to and including the
third trading day prior to the applicable date
(adjusted to give effect to any splits,
consolidations, dividends or other recapitalizations
occurring during such fifteen-day period);
	 
	 	 	 	 
	 

	 	“Material Adverse Change”
	 	means any event or circumstance that occurs which
might reasonably be expected to have a material
adverse effect on the prospects, business, operations
or financial condition of Chung Cheng or its
relationship with the parties to the XFM Agreements
(if any);

4

 

	 	 	 	 	 
	 

	 	“NASDAQ”
	 	means the National Association of Securities Dealers
Automated Quotations;
	 
	 	 	 	 
	 

	 	“Non-Disclosing Parties”
	 	has the meaning ascribed to it in Clause 12.4;
	 
	 	 	 	 
	 

	 	“Person” or “Persons”
	 	means any natural person, corporation, company,
association, partnership, organization, business,
firm, joint venture, trust, unincorporated
organization or any other entity or organization, and
shall include any governmental authority;
	 
	 	 	 	 
	 

	 	“PRC”
	 	means the People’s Republic of China;
	 
	 	 	 	 
	 

	 	“Relevant Date”
	 	means the respective payment date for the payment of
the Total Consideration hereunder;
	 
	 	 	 	 
	 

	 	“RMB” and “Renminbi”
	 	means the lawful currency of the People’s Republic of
China
	 
	 	 	 	 
	 

	 	“SAIC”
	 	means the State Administration of Industry and
Commerce and its competent branches;
	 
	 	 	 	 
	 

	 	“Second Closing”
	 	has the meaning ascribed to it in Clause 5.1;
	 
	 	 	 	 
	 

	 	“Second Closing Conditions”
	 	has the meaning ascribed to it in Clause 5.2;
	 
	 	 	 	 
	 

	 	“Second Closing Date”
	 	has the meaning ascribed to it in Clause 5.1;
	 
	 	 	 	 
	 

	 	“Tianren”
	 	Means Beijing Tian Ren Qing An Media Technology Co.,
Ltd. (), a limited
liability company incorporated under the laws of the
PRC with a registered address at A197, 6/F Beijing Jin
Yuan Times Shopping Center, No.1 , Yuan Da Road,
Haidian District, Beijing;
	 
	 	 	 	 
	 

	 	“Tongji”
	 	Means Beijing Tong Ji New Technology Development Co.,
Ltd. (), a company
incorporated under the laws of the PRC with a
registered address at Room 1706, A1, Chang Yuan Tian
Di, No. 18, Suzhou Street, Haidian District, Beijing;
	 
	 	 	 	 
	 

	 	“Total Consideration”
	 	has the meaning ascribed to it in Clause 2.3;
	 
	 	 	 	 
	 

	 	“UA Terminals”
	 	has the meaning ascribed to “UA Media” in the XFM
Hezhong Agreement;

5

 

	 	 	 	 	 
	 

	 	“US$” and “US
Dollars”
	 	means the lawful currency of the United States of
America;
	 
	 	 	 	 
	 

	 	“XFM Agreements”
	 	means, collectively, the XFM CYN Agreement, XFM
Hezhong Agreement, XFM Tianren Agreement, XFM Tongji
Agreement and, after the First Closing, the XFM CYN
Intranet Agreement;
	 
	 	 	 	 
	 

	 	“XFM CYN Agreement”
	 	means the agreement to be entered into by Chung Cheng,
CY Advertising, CY Network and XFM or XFM Nominee
pursuant to Clause 2.2 and in the form set forth in
Schedule C;
	 
	 	 	 	 
	 

	 	“XFM CYN Intranet Agreement”
	 	means the agreement to be entered into by JV, CY
Advertising and CY Network pursuant to Clause 5.4(i)
in the form as agreed by XFM;
	 
	 	 	 	 
	 

	 	“XFM Hezhong Agreement”
	 	means the agreement to be entered into by Hezhong,
Chung Cheng and XFM or XFM Nominee pursuant to Clause
2.2 and in the form as set out in Schedule F;
	 
	 	 	 	 
	 

	 	“XFM Nominee”
	 	means any Person or Persons nominated by XFM;
	 
	 	 	 	 
	 

	 	“XFM Shares”
	 	means Class A common shares in the share capital of
XFM with a par value of US$0.001 each;
	 
	 	 	 	 
	 

	 	“XFM Tianren Agreement”
	 	means the agreement to be entered into by Tianren,
Chung Cheng and XFM or XFM Nominee pursuant to Clause
2.2 and in the form as set out in Schedule E;
	 
	 	 	 	 
	 

	 	“XFM Tongji Agreement”
	 	means the agreement to be entered into by Chung Cheng,
Tongji and XFM or XFM Nominee pursuant to Clause 2.2
and in the form as set out in Schedule D; and
	 
	 	 	 	 
	 

	 	“4S Operational Rights”
	 	has the meaning ascribed to Advertising and Events
Organizing Rights under the XFM Hezhong Agreement.

	1.2	 	Interpretation. In this Agreement:

	 	(a)	 	the headings are inserted for convenience only and shall not affect the
construction of this Agreement;

	 	(b)	 	references to statutory provisions shall be construed as references to those
provisions as amended or re-enacted or as their application is modified by other
statutory provisions (whether before or after the date hereof) from time to time and
shall include any provisions of which they are re-enactments (whether with or without
modification);

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	 	(c)	 	all time and dates in this Agreement shall be Hong Kong time and dates except
where otherwise stated;

	 	(d)	 	unless the context requires otherwise, words incorporating the singular shall
include the plural and vice versa and words importing a gender shall include every
gender; and

	 	(e)	 	references herein to Clauses, Recitals and Schedules are to clauses and
recitals of and schedules to this Agreement.

	1.3	 	Recitals, Schedules. All recitals and schedules form part of this Agreement and
shall have the same force and effect as if expressly set forth in the body of this Agreement
and any reference to this Agreement shall include the recitals and schedules.

	1.4	 	Joint Obligations. Warranties, covenants, indemnities or other obligations expressed
in this Agreement to be given by more than one party shall be deemed to be given by such
parties on a joint and several basis unless otherwise expressly provided for.

	2.	 	PROCUREMENT

	2.1	 	Procurement. Subject to the terms and conditions set forth in this Agreement, XFM
(relying on the representations, warranties, agreements, covenants, undertakings and
indemnities hereinafter referred to) agrees with Chung Cheng to acquire and, Chung Cheng
agrees to procure its nominees or affiliates to grant to XFM or XFM Nominee as XFM may direct
at First Closing, all of the rights, interests, titles and benefits in and to each of the XFM
Agreements with effect from the First Closing Date free from all Encumbrances of any nature
whatsoever and together with all rights of any nature whatsoever now or hereafter attaching or
accruing to them after the First Closing Date.

	2.2	 	Procurement of Agreements. Chung Cheng shall procure and guarantee each of the
following on or prior to First Closing:

	 	(a)	 	XFM CY Agreement.

	 	(i)	 	Chung Cheng shall procure CY Advertising and CY Network or any
other parties as may be necessary to grant all of the rights, interests, titles
and benefits in and to the XFM CYN Agreement including the CY Website
Operational Rights to XFM or XFM Nominee as XFM may direct free from all
Encumbrances; and
	 
	 	(ii)	 	CY Advertising, CY Network and Chung Cheng shall enter into the
XFM CYN Agreement with XFM or XFM Nominee as XFM may direct.

	 	(b)	 	Tongji Agreements.

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	 	(i)	 	Chung Cheng shall procure Tongji or any other parties as may be
necessary to grant all of the rights, interests, titles and benefits in and to
the XFM Tongji Agreement including the Billboard Operational Rights to XFM or
XFM Nominee as XFM may direct free from all Encumbrances;

	 	(ii)	 	Tongji shall enter into the XFM Tongji Agreement with XFM or
XFM Nominee as XFM may direct;

	 	(iii)	 	BCGC shall issue a written letter confirming that XFM or XFM
Nominee as XFM may direct shall be entitled to have the rights, interests,
titles and benefits in and to XFM Tongji Agreement (for the avoidance of doubt,
the aforesaid BCGC’s confirmation only relates to those Billboard Operational
Rights in Beijing, PRC, as comtemplated in the XFM Tongji Agreement); and

	 	(iv)	 	HCGC shall issue a written letter confirming that XFM or XFM
Nominee as XFM may direct shall be entitled to have the rights, interests,
titles and benefits in and to XFM Tongji Agreement (for the avoidance of doubt,
the aforesaid HCGC’s confirmation only relates to those Billboard Operational
Rights in Hubei province, PRC, as comtemplated in the XFM Tongji Agreement);

	 	(c)	 	XFM Tianren Agreement.

	 	(i)	 	Chung Cheng shall procure Tianren or any other parties as may
be necessary to grant all of the rights, interests, titles and benefits in and
to the XFM Tianren Agreement including the Magazine Operational Rights to XFM
or XFM Nominee as XFM may direct free from all Encumbrances; and

	 	(ii)	 	Tianren shall enter into the XFM Tianren Agreement with XFM or
XFM Nominee as XFM may direct.

	 	(d)	 	XFM Hezhong Agreement.

	 	(i)	 	Chung Cheng shall procure Hezhong or any other parties as may
be necessary to grant all of the rights, interests, titles and benefits in and
to the XFM Hezhong Agreement including the 4S Operational Rights, to XFM or XFM
Nominee free from all Encumbrances; and

	 	(ii)	 	Hezhong shall enter into the XFM Hezhong Agreement with XFM or
XFM Nominee as XFM may direct.

	2.3	 	Payment. Subject to the conditions stipulated herein, XFM shall pay to Chung Cheng
Five Million (US$5,000,000) US Dollars (the “Total Consideration”) and Eight Million XFM
Shares (8,000,000 XFM Shares) in the manner set forth below:

8

 

	 	(a)	 	First Closing Consideration. Three Million Five Hundred Thousand
(US$3,500,000) US Dollars and Four Million XFM Shares (4,000,000 XFM Shares) (the
“First Closing Consideration”) shall be payable as follows:

	 	(i)	 	One Million Eight Hundred Thousand (US$1,800,000) US Dollars
(the “Down Payment”) shall be payable in cash upon the execution of this
Agreement as a down payment to be applied to the First Closing Consideration;
and

	 	(ii)	 	One Million Seven Hundred Thousand (US$1,700,000) US Dollars
and Four Million XFM Shares (4,000,000 XFM Shares) (the “Balance First Closing
Consideration”) shall be payable as follows:

	 	(A)	 	One Million Seven Hundred Thousand
(US$1,700,000) US Dollars in cash shall be payable at First Closing
Date to such account as Chung Cheng shall designated; and

	 	(B)	 	Four Million XFM Shares (US$4,000,000 XFM
Shares) shall be issued to Chung Cheng within ten (10) Business Days
following the First Closing Date. Notwithstanding the foregoing, XFM
may, in its sole discretion, deliver to Chung Cheng or any other
person(s) designated by Chung Cheng money in US Dollars in lieu of all
or a portion of the First Closing Consideration otherwise deliverable
to Chung Cheng in XFM Shares determined as the Market Value of such
            shares.

	 	(b)	 	Second Closing Consideration. One Million Five Hundred Thousand
US$1,500,000) US Dollars and Four Million XFM Shares (4,000,000 XFM Shares) (the
“Second Closing Consideration”) shall be payable as follows:

	 	(i)	 	One Million Five Hundred Thousand (US$1,500,000) US Dollars in
cash shall be payable at Second Closing Date to such account as Chung Cheng
shall designated; and

	 	(ii)	 	Four Million XFM Shares (4,000,000 XFM Shares) shall be issued
to Chung Cheng within ten (10) Business Days following the First Closing Date.
Notwithstanding the foregoing, XFM may, in its sole discretion, deliver to
Chung Cheng or any other person(s) designated by Chung Cheng money in US
Dollars in lieu of all or a portion of the First Closing Consideration
otherwise deliverable to Chung Cheng in XFM Shares determined as the Market
Value of such shares.

	2.4	 	Down Payment. If the First Closing does not occur on or prior to 30 September 2008
or this Agreement is terminated in accordance with the terms hereof, Chung Cheng shall
forthwith return the Down Payment to XFM together with interest thereon calculated at 10% per
annum.

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	2.5	 	First Closing. Upon the First Closing Conditions having been satisfied or waived on
or before the expiration of the time period herein for the fulfilment of such conditions, the
completion of the procurement of grant of interests hereunder (the “First Closing”) shall take
place at the offices of XFM in Hong Kong or at such other place as may be agreed upon by the
Parties. The date and time of the First Closing are herein referred to as the “First Closing
Date”. For greater certainty, XFM shall not be obliged to pay any amount of the Balance First
Closing Consideration unless all the First Closing Conditions are fulfilled or waived in
writing by XFM. Without prejudice to any other remedies available to XFM, XFM may defer First
Closing and the payment of the Balance First Closing Consideration until all First Closing
Conditions are fulfilled or waived in writing.

	3.	 	CONDITIONS TO FIRST CLOSING

	3.1	 	Conditions to First Closing. The obligations of XFM under this Agreement to pay the
First Closing Consideration are subject to the satisfaction or written waiver on or before the
First Closing Date of all of the following conditions and the delivery of all of the documents
set out hereunder (collectively, the “First Closing Conditions”).

	3.2	 	First Closing Deliverables. Upon the First Closing, Chung Cheng shall deliver or
procure to be fulfilled or delivered to XFM the following:

	 	(a)	 	in respect of CY Advertising and CY Network:

	 	(i)	 	XFM CYN Agreement duly executed by CY Advertising and CY
Network; and
	 
	 	(ii)	 	evidence satisfactory to XFM that all rights, interests, titles and
benefits under the XFM CYN Agreement have been validly granted to XFM or XFM
Nominee (as directed by XFM) which grant has been consented to by CY
Advertising and CY Network and any other parties as may be necessary;

	 	(b)	 	in respect of Tongji, BCGC and HCGC:

	 	(i)	 	XFM Tongji Agreement duly executed by Tongji;

	 	(ii)	 	evidence satisfactory to XFM that all rights, interests, titles and
benefits under the XFM Tongji Agreement have been validly granted to XFM or
XFM Nominee (as directed by XFM) which grant has been consented to by Tongji
and any other parties as may be necessary;

	 	(c)	 	in respect of Tianren:

	 	(i)	 	XFM Tianren Agreement duly executed by Tianren;

	 	(ii)	 	evidence satisfactory to XFM that and all rights, interests, titles and
benefits under the XFM Tianren Agreement have been validly granted

10

 

	 	 	 	to XFM or XFM Nominee (as directed by XFM) which grant has been
consented to by Tianren and any other parties as may be necessary;

	 	(d)	 	in respect of Hezhong:

	 	(i)	 	XFM Hezhong Agreement duly executed by Hezhong;
	 
	 	(ii)	 	evidence satisfactory to XFM that all rights, interests, titles and
benefits under the XFM Hezhong Agreement have been validly granted to XFM or
XFM Nominee (as directed by XFM) which grant has been consented to by
Hezhong and any other parties as may be necessary;

	 	(f)	 	Other Deliverables.

	 	(i)	 	written confirmation from Chung Cheng that it is not aware of
any matter or thing which is in breach of or inconsistent with any of the
representations, warranties and undertakings herein contained; and

	 	(ii)	 	such other agreements, documents and actions as XFM may reasonably
require for the purposes herein, including but not limited to, all documents
required to be executed, submitted to and/or registered with to any
Governmental Entity.

	3.3	 	Other First Closing Conditions. The obligations of XFM under this Agreement to pay
the First Closing Consideration are subject to the satisfaction or written waiver on or before
the Relevant Date of each of the following:

	 	(a)	 	Representations and Warranties. All representations and warranties
shall be true on and as of the later of the First Closing Date or the date of payment
of the First Closing Consideration with the same effect as though such representations
and warranties had been made on and at such date.

	 	(b)	 	Due Diligence. XFM has completed its due diligence review of Chung
Cheng the counterparties to the XFM Agreements and their businesses and is satisfied
with the results thereof.

	 	(c)	 	Performance. Chung Cheng shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement on or before the
First Closing or at the date of payment.

	 	(d)	 	No Material Adverse Change. There has not occurred any Material
Adverse Change in the Company’s businesses.

	 	(e)	 	Billboards. Tongji has commenced construction of a minimum of two
hundred and fifty (250) advertising billboards (the “Billboards”) at the Beijing
Campuses and Hubei Campuses and have provided evidence in relation thereof satisfactory
to XFM.

11

 

	 	(f)	 	Consents and Approvals. All the Consents and approvals required for the
valid and effective grant of all the rights, interests, titles and benefits to XFM or
XFM Nominee (as XFM may direct) under the XFM Agreements and the execution and delivery
of the XFM Agreements by the parties thereto (other than XFM or XFM Nominee) and the
consummation of the transactions and performance of the obligations contemplated in
them shall have been duly obtained.

	 	(g)	 	XFM Agreements. All XFM Agreements required to be delivered hereunder
shall have been duly executed signed by all parties thereto (except for XFM) and all
necessary Consents, licenses and approvals for their construction, erection and
operation have been obtained and are validly existing.

	 	(h)	 	Board Approval. XFM’s board of directors shall have authorized and
approved the execution and delivery of this Agreement and any other documents or
instruments contemplated hereunder.

	 	(i)	 	Registration or Consents. Where required under PRC laws, the execution
and performance of the XFM Agreements have been duly filed with or delivered to each
relevant Governmental Entity.

	4.	 	ESTABLISHMENT OF JV

	4.1	 	As soon as practicable following the execution of this Agreement, Chung Cheng shall procure
that a joint venture company (the “JV”) be established in Shanghai or Beijing in the PRC
within six (6) months from the First Closing Date as follows (unless otherwise expressly
agreed to by XFM):

	 	(a)	 	The JV shall be established with a registered capital as mutually agreed by
Chung Cheng and XFM;

	 	(b)	 	Chung Cheng or its nominee shall contribute and pay fifty (50) Per Cent of the
total registered capital of the JV (the “Chung Cheng JV Contribution”) and XFM or XFM
Nominee shall contribute and pay fifty (50) Per Cent of the total registered capital of
the JV (the “XFM JV Contribution”);

	 	(c)	 	The JV shall have a board of directors. XFM or XFM Nominee shall be entitled to
appoint one half of the total number of directors and Chung Cheng or its nominee shall
be entitled to appoint the remaining directors;

	 	(d)	 	The joint venture contract and articles of association of the JV shall be duly
completed and executed by Chung Cheng or its nominee and XFM or XFM Nominee;

	 	(e)	 	The JV will primarily be engaged in the operation and maintenance of the
intranet as set forth in XFM CYN Intranet Agreement;

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	5.	 	SECOND CLOSING
	 
	5.1	 	Second Closing. Upon the Second Closing Conditions having been satisfied or waived
on or before the expiration of the time period herein for the fulfilment of such conditions
(the “Second Closing”), the Parties shall meet at the offices of XFM in Hong Kong or at such
other place as may be agreed upon by the Parties on the date that is immediately following
confirmation from XFM that the said conditions have been satisfied or waived in writing. The
date and time of the Second Closing are herein referred to as the “Second Closing Date”. For
greater certainty, XFM shall not be obliged to pay any amount of the Second Closing
Consideration unless all the Second Closing Conditions are fulfilled or waived in writing by
XFM. Without prejudice to any other remedies available to XFM, XFM may defer Second Closing
and the payment of the Second Closing Consideration until all Second Closing Conditions are
fulfilled or waived.
	 
	5.2	 	Conditions to Second Closing. The obligations of XFM under this Agreement to pay the
Second Closing Consideration are subject to the satisfaction or written waiver on or before
the Second Closing Date of all of the conditions and the delivery set out hereunder
(collectively, the “Second Closing Conditions”).
	 
	5.3	 	Second Closing Deliverables. Upon the Second Closing, Chung Cheng shall deliver or
procure to be fulfilled or delivered to XFM the following:

	 	(a)	 	in respect of the JV:

	 	(i)	 	original joint venture contract duly executed by Chung Cheng or its nominee
for establishment of the JV in the form as mutually agreed by Chung Cheng or its
nominee and XFM or XFM Nominee;
	 
	 	(ii)	 	original articles of association of the JV duly executed by Chung Cheng or
its nominee for establishment of the JV in the form mutually agreed to by Chung
Cheng or its nominee and XFM or XFM Nominee;
	 
	 	(iii)	 	all Consents, approvals, licenses and certificates required for
establishment and operation of the JV;
	 
	 	(iv)	 	all corporate records of the JV (including its company chop, seal, finance
chop and legal representative chop);
	 
	 	(v)	 	original duly completed and executed documents required for the appointment
of directors and legal representative of the JV in the form satisfactory to XFM;

	 	(b)	 	in respect of Tongji

	 	(i)	 	evidence satisfactory to XFM that the construction of the Billboards
pursuant to Clause 3.3(e) has been completed and all Billboards are

13

 

	 	 	 	fully operational on a full time and continuous basis and all necessary Consents,
licenses and approvals for their construction, erection and operation have been
obtained and are validly existing; and
	 
	 	(ii)	 	evidence satisfactory to XFM that the Billboards have been used to
continuously place advertisements and generate revenue for XFM or XFM Nominee;

	 	(c)	 	in respect of Hezhong

	 	(i)	 	evidence satisfactory to XFM that the number of operating LCD Screens for
which XFM or XFM Nominee have been granted the exclusive advertising rights
pursuant to the XFM Hezhong Agreement:

	 	(A)	 	are fully operational on a full time and continuous
basis and all necessary Consents, licenses and approvals for their
construction, erection and operation have been obtained and are validly
existing;
	 
	 	(B)	 	account for more than eighty (80%) Per Cent of the
total number of advertising LCD display screens managed by UA Terminals or
its affiliates; and
	 
	 	(C)	 	exceed one hundred seventy (170) screens in total; and
	 
	 	(D)	 	all necessary Consents, licenses and approvals for
their construction, erection and operation have been obtained and are
validly existing; and

	 	(d)	 	in respect of the sales team:

	 	(i)	 	evidence to the satisfaction of XFM that Chung Cheng or its nominee has
hired a team of professionals with expertise in advertising operations to be
primarily responsible for the advertising business to be carried on by XFM or
XFM Nominee arising from the XFM Agreements; and
	 
	 	(ii)	 	employment contracts duly executed by each of the said
professionals in a form to the satisfactory of XFM;

	 	(e)	 	Others:

	 	(i)	 	written confirmation from Chung Cheng that they are not aware of any
matter or thing which is in breach of or inconsistent with any of the
representations, warranties and undertakings herein contained;
	 
	 	(ii)	 	such other papers and documents as XFM may reasonably require for the
purposes herein, including but not limited to, all documents

14

 

	 	 	 	required to be signed, submitted to and/or registered with to any Governmental Entity; and
	 
	 	(iv)	 	the execution and delivery of such other papers and documents and the
consummation of such actions and steps as XFM may reasonably require.

	5.4	 	Other Second Closing Conditions. The obligations of XFM under this Agreement to pay
the Second Closing Consideration are subject to the satisfaction or waiver on or before the
Relevant Date of each of the following:

	 	(a)	 	Representations and Warranties. All representations and warranties shall
be true on and as of the Second Closing Date or the date of payment of the Second
Closing Consideration with the same effect as though such representations and warranties
had been made on and at such date.
	 
	 	(b)	 	Performance. Chung Cheng shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement on or before the
Second Closing or the date of payment.
	 
	 	(c)	 	JV. The JV has been duly established, all Consents for it to carry on
the businesses intended to be carried on by it have been obtained, is fully operational
as a going concern and all capital contribution required to be made by Chung Cheng or
its nominee has been fully paid.
	 
	 	(d)	 	Billboards.

	 	(i)	 	The construction of the Billboards pursuant to Clause 3.3(e) has been duly
completed and all the said billboards are fully operational on a full time and
continuous basis and all necessary Consents, licences and approvals for their
construction, erection and operation have been obtained and are validly
existing;
	 
	 	(ii)	 	The Billboards have been used to continuously place advertisements
and generate revenue for XFM or XFM Nominee.

	 	(e)	 	UA Terminals.

	 	(i)	 	The number of operating LCD Screens for which XFM or XFM Nominee have been
granted the exclusive advertising rights pursuant to the XFM Hezhong Agreement:

	 	(A)	 	are fully operational on a full time and continuous
basis and all necessary Consents, licences and approvals for their
construction, erection and operation have been obtained and are validly
existing;

15

 

	 	(B)	 	account for more than eighty (80%) Per Cent of the
total number of advertising LCD display screens managed by UA Terminals and
its affiliates; and
	 
	 	(C)	 	exceed one hundred seventy (170) screens in total and
all necessary Consents, licences and approvals for their construction,
erection and operation have been obtained and are validly existing;.

	 	(f)	 	Sales Team.

	 	(i)	 	Chung Cheng has hired a team of professionals with
expertise in advertising to be primarily responsible for the advertising
business to be carried on by XFM or XFM Nominee arising from the XFM Agreements;
and
	 
	 	(ii)	 	Each of the said professionals has executed employment contracts in
a form to the satisfactory of XFM.

	 	(g)	 	Successful Implementation.

	 	(i)	 	XFM or XFM Nominee has successfully released information and placed
advertisements on the CYN Websites on a full time and continuous basis and all
necessary Consents, licences and approvals to carry on such business have been
obtained and are validly existing;
	 
	 	(ii)	 	XFM or XFM Nominee has successfully released information and placed
advertisements on a full time and continuous basis on each of the advertising
billboards on the Beijing Campuses and Hubei Campuses pursuant to the XFM Tongji
Agreement and all necessary Consents, licences and approvals for the carrying on
such business have been obtained and are validly existing;
	 
	 	(iii)	 	XFM or XFM Nominee has successfully released information and
placed advertisements on a full time and continuous basis on the Magazine
pursuant to the XFM Tianren Agreement and all necessary Consents, licences and
approvals for the carrying on such business have been obtained and are validly
existing; and
	 
	 	(iv)	 	XFM or XFM Nominee has successfully released information and placed
advertisements on a full time and continuous basis on the LCD Display Screens
pursuant to the XFM Hezhong Agreement and all necessary Consents, licences and
approvals for the carrying on such business have been obtained and are validly
existing.

	 	(h)	 	XFM CYN Intranet Agreement.

16

 

	 	(i)	 	Chung Cheng shall have procured CY Advertising and CY Network or
any other parties as may be necessary to grant all of the rights, interests,
titles and benefits in and to the CY Intranet Operational Rights to JV free from
all Encumbrances;
	 
	 	(ii)	 	CY Advertising, CY Network and JV shall enter into the XFM CYN
Intranet Agreement in the form satisfactory to XFM; and
	 
	 	(iii)	 	XFM or XFM Nominee has successfully released information, placed
advertisements and hold the event on a full time and continuous basis on its CY
Intranet Operational Rights pursuant to the XFM CYN Intranet Agreement and all
necessary Consents, licences and approvals for the carrying on such business have
been obtained and are validly existing.

	6.	 	DEFRERAL OF CLOSING
	 
	6.1	 	Deferral of Closing. Without prejudice to any other remedies available to XFM, if:

	 	(a)	 	any provision of Clause 3 has not been complied with by Chung Cheng on the First
Closing Date (except where Chung Cheng’s failure to comply is caused by XFM), XFM may:

	 	(i)	 	proceed to the First Closing so far as practicable (without
prejudice to its rights hereunder); or
	 
	 	(ii)	 	rescind its obligations to acquire the interests under this
Agreement without prejudice to any other remedy and without incurring any
liability to Chung Cheng; and

	 	(b)	 	any provision of Clause 5 has not been complied with by Chung Cheng on the Second
Closing Date (except where Chung Cheng’s failure to comply is caused by XFM), XFM may
proceed to the Second Closing so far as practicable (without prejudice to its rights
hereunder).

	6.2	 	First Closing Long Stop Date. Without prejudice to any other remedies available to
the Parties, if the First Closing Conditions have not been satisfied within sixty (60) days
following the execution of this Agreement, XFM may, at its sole discretion:

	 	(a)	 	rescind its and/or XFM Nominee’s obligations to acquire the interests contemplated
under this Agreement and Chung Cheng shall return all payments it has then received
from XFM under this Agreement to XFM within three (3) days following the rescission
together with an interest calculated at an interest rate of ten (10)% Per Cent per
annum; or
	 
	 	(b)	 	require Chung Cheng to carry on businesses and operations, including any actions
or decision concerning the XFM Agreements at the direction of XFM.

17

 

	6.3	 	Second Closing Long Stop Date. Without prejudice to any other remedies available to
the Parties, if the Second Closing Conditions have not been satisfied within one hundred
eighty (180) days following the Second Closing Date, XFM shall be entitled to rescind its
and/or XFM Nominee’s obligations to pay the Second Closing Consideration. Chung Cheng shall
compensate XFM with an amount equal to the capital XFM already contributed into the JV
together with an interest calculated at an interest rate of ten (10)% Per Cent per annum as
XFM’s unliquidated damage within three (3) days following the rescission.

	7.	 	COVENANTS
	 
	7.1	 	Further Covenants. Chung Cheng hereby irrevocably covenants and undertakes to XFM to
execute and deliver and procure the due execution and delivery of all such further documents
required to be signed by Chung Cheng or other parties to the XFM Agreements as are necessary
to vest in XFM or the XFM Nominee all such rights, interests, titles and benefits as are
intended to be vested in them by or pursuant to this Agreement. Each of the signing parties
shall bear the expenses incurred by it.

	8.	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF CHUNG CHENG
	 
	8.1	 	Chung Cheng’s Representations. Chung Cheng hereby represents and warrants and
covenants to XFM that all the statements set out under Schedule A are true and correct as of
the date hereof and as at First Closing. Chung Cheng hereby represents and warrants and
covenants to XFM that all the statements set out under Schedule B are true and correct as at
Second Closing.

	9.	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF XFM
	 
	 	 	XFM hereby represents, warrants and covenants to Chung Cheng that each of the following
statements is true as at the date hereof and at First Closing:
	 
	9.1	 	Organisation and Qualification. It is a person or a legal entity duly organised and
validly existing under the laws of its jurisdiction of incorporation.
	 
	9.2	 	Authorisation. It has taken all corporate or other action required to authorise, and
has duly authorised, the execution, delivery and performance of this Agreement and upon due
execution and delivery the same will constitute its legal, valid and binding obligations
enforceable in accordance with its terms.
	 
	9.3	 	Power and Authority. It has full power and authority to make the covenants and
representations referred to herein and to execute, deliver and perform this Agreement. It has
the capacity to pay (or issue) the Total Consideration and other payment as provided in this
Agreement to Chung Cheng.

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	9.4	 	Compliance with Laws and Other Instruments. It holds, and at all times has held all
licenses, permits, and authorizations from all governmental entities necessary for the lawful
conduct of its business pursuant to all applicable statutes, laws, ordinances, rules, and
regulations of all such authorities having jurisdiction over it or any part of its operations.
There are no violations or claimed violations of any such license, permit, or authorization,
or any such statute, law, ordinance, rule or regulation.
	 
	9.5	 	Corporate Governance. Neither the execution and delivery of this Agreement nor the
performance by it of its obligations under this Agreement will (i) conflict with or result in
any breach of its charter documents; (ii) require any Consents by Governmental Entity, (iii)
conflict with, result in a breach or default of, or give rise to any right of termination,
cancellation or acceleration or result in the creation of any lien, charge, encumbrance, or restriction upon any of the properties or Assets of it or
its shares under, any law, statute, rule, regulation, judgment, decree, order, government
permit, license or order or any mortgage, indenture, note, license, trust, agreement or other
agreement, instrument or obligation to which it is a party.

	10.	 	INDEMNITY
	 
	10.1	 	Indemnity of XFM. Chung Cheng shall indemnify and will keep indemnified and save
harmless XFM and its nominees from and against the following (collectively, the “Losses”):

	 	(a)	 	any and all losses, claims, damages (including damages, interest, penalties, fines
and monetary sanctions) liabilities and costs incurred or suffered by XFM or its
nominees by reason of, resulting from, in connection with, or arising in any manner
whatsoever out of the breach of any warranty, representation or covenant given
hereunder or the inaccuracy of any representation given hereunder or any breach by any
party other than XFM under the XFM Agreements provided that the indemnity contained in
this Clause shall be without prejudice to any other rights and remedies available to
XFM; and
	 
	 	(b)	 	any loss, claim, liability, expense, or other damage attributable to:

	 	(i)	 	any and all taxes (or the non-payment thereof) of XFM or XFM
Nominee for all taxable periods ending on or before the First Closing Date
(“Pre-Closing Tax Period”);
	 
	 	(ii)	 	all taxes of any member of an affiliated, consolidated, combined or
unitary group of XFM or XFM Nominee (or any predecessor of any of the foregoing)
is or was a member on or prior to the First Closing Date; and
	 
	 	(iii)	 	any and all taxes of any person imposed on XFM or XFM Nominee as a
transferee or successor, by contract or pursuant to any law, rule, or

19

 

	 	 	 	regulation, which taxes relate to an event or transaction occurring before the First Closing.

	10.2	 	Tax Matters.

	 	(a)	 	Payment in full of any amount due from Chung Cheng under this Clause shall be
made to XFM in immediately available funds at least two (2) Business Days before the
date payment of the taxes to which such payment relates is due, or, if no tax is
payable, within fifteen days after written demand is made for such payment.
	 
	 	(b)	 	Notwithstanding the foregoing, XFM shall provide Chung Cheng with reasonably
prompt written notice of any proposed tax adjustment that may give rise to Chung Cheng’s
indemnification obligation hereunder and shall cooperate with Chung Cheng and permit
Chung Cheng to participate, at its own expense, in the audit or other proceeding.
Notwithstanding the preceding sentence, in the event that Chung Cheng wants to accept a
proposed settlement of a tax claim for which they have an indemnity obligation pursuant
to this Clause (the “Tax Settlement Option”) and XFM determines that it prefers to
pursue the tax claim further, XFM may pursue the tax claim without the participation of
Chung Cheng.
	 
	 	(c)	 	In the case of any taxable period that ends on or before the First Closing Date
(a “Straddle Period”), the amount of any taxes based on or measured by income or
receipts of XFM or XFM Nominee thereof for the Pre-Closing Tax Period shall be
determined based on an interim closing of the books as of the close of business on the
First Closing Date, and the amount of other taxes of XFM or XFM Nominee for a Straddle Period which relate to the Pre-Closing Tax Period
shall be deemed to be the amount of such tax for the entire taxable period multiplied
by a fraction the numerator of which is the number of days in the taxable period
ending on the First Closing Date and the denominator of which is the number of days in
such Straddle Period.

	10.2	 	Costs. For the purposes of this Clause, “costs” includes reasonable lawyers’ and
accountants’ fees and expenses, court costs and all other out-of-pocket expenses.
	 
	10.3	 	Survival of Warranties and Indemnity. The representations and warranties of Chung
Cheng to this Agreement given under this Agreement shall survive First Closing and Second
Closing.
	 
	10.4	 	Third Party Claims.

	 	(a)	 	A party entitled to indemnification hereunder (an “Indemnified Party”) shall
notify promptly the indemnifying party (the “Indemnifying Party”) in writing of the
commencement of any action or proceeding with respect to which a claim for
indemnification may be made pursuant to this Agreement.

20

 

	 	(b)	 	In case any claim, action or proceeding is brought against an Indemnified Party
and the Indemnified Party notifies the Indemnifying Party in writing of the commencement
thereof, the Indemnifying Party shall be entitled to participate therein and to assume
the defense thereof, to the extent that it chooses, with counsel reasonably satisfactory
to such Indemnified Party, and after notice from the Indemnifying Party to such
Indemnified Party that it so chooses, the Indemnifying Party shall not be liable to such
Indemnified Party for any legal or other expenses subsequently incurred by such
Indemnified Party in connection with the defense thereof other than reasonable costs of
investigation; provided, however, that:

	 	(i)	 	if the Indemnifying Party fails to take reasonable steps necessary
to defend diligently the action or proceeding within twenty (20) calendar days
after receiving notice from such Indemnified Party that the Indemnified Party
reasonably believes it has failed to do so; or
	 
	 	(ii)	 	if such Indemnified Party who is a defendant in any claim or
proceeding which is also brought against the Indemnifying Party reasonably shall
have concluded that there may be one or more legal defenses available to such
Indemnified Party which are not available to the Indemnifying Party; or
	 
	 	(iii)	 	if representation of both parties by the same counsel is otherwise
inappropriate under applicable standards of professional conduct,

	 	 	 	then, in any such case, the Indemnified Party shall have the right to assume or
continue its own defense as set forth above (but with no more than one firm of counsel
for all Indemnified Parties in each jurisdiction), and the Indemnifying Party shall be
liable for any expenses therefor.

	10.5	 	Settlement of Claims.

	 	(a)	 	No Indemnifying Party shall, without the written consent of the Indemnified
Party, effect the settlement or compromise of, or consent to the entry of any judgment
with respect to, any pending or threatened action or claim in respect of which
indemnification may be sought hereunder (whether or not the Indemnified Party is an
actual or potential party to such action or claim) unless such settlement, compromise or
judgment:

	 	(i)	 	includes an unconditional release of the Indemnified Party from all
liability arising out of such action or claim;
	 
	 	(ii)	 	does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of any Indemnified Party; and
	 
	 	(iii)	 	does not include any injunctive or other non-monetary relief.

21

 

	 	(b)	 	the Indemnified Party may, in its sole discretion, offset against any payment
any Losses incurred or suffered by the Indemnifying Party and for which the
Indemnifying Party is entitled to be indemnified in this Agreement.

	11.	 	TERMINATION
	 
	11.1	 	Termination. This Agreement may be terminated at any time prior to the First
Closing:

	 	(a)	 	by XFM if, between the date hereof and the First Closing Date:

	 	(i)	 	there is a Material Adverse Change caused by Chung Cheng’
breach of any provision of this Agreement;
	 
	 	(ii)	 	any representations and warranties made by Chung Cheng as
contained in this Agreement shall not have been materially true and correct
when made;
	 
	 	(iii)	 	Chung Cheng shall not have complied in all material respects
with the covenants or agreements contained in this Agreement to be complied
with by it; or
	 
	 	(iv)	 	any of Chung Cheng, its nominees or affiliates makes a general
assignment for the benefit of creditors, or any proceeding shall be instituted
by or against Chung Cheng seeking to adjudicate it bankrupt or insolvent, or
seeking liquidation, winding up or reorganization, arrangement, adjustment,
protection, relief or composition of its debts under any law related to
bankruptcy, insolvency or reorganization.

	 	 	 	In event of the termination under this Clause 11.1(a), without prejudice to any
other remedies available to the Parties, Chung Cheng shall return all payments it
has then received from XFM under this Agreement to XFM within three (3) days
following the termination together with interest calculated at an interest rate of
ten (10)% Per Cent per annum;
	 
	 	(b)	 	by Chung Cheng if, between the date hereof and the First Closing Date:

	 	(i)	 	any representations and warranties made by XFM contained in
this Agreement shall not have been materially true and correct;
	 
	 	(ii)	 	XFM shall not have complied in all material respects with the
covenants or agreements contained in this Agreement to be complied with by it;
or
	 
	 	(iii)	 	XFM makes a general assignment for the benefit of creditors,
or any proceeding shall be instituted by or against XFM seeking to adjudicate
XFM in question bankrupt or insolvent, or seeking liquidation, winding

22

 

	 	 	 	up or reorganization, arrangement, adjustment, protection, relief or composition of its debts under any law related to bankruptcy, insolvency or
reorganization;

	 	 	 	In event of the termination under this Clause 11.1(b), Chung Cheng shall return
all payments it has then received from XFM under this Agreement to XFM within three
(3) days following the termination;
	 
	 	(c)	 	by XFM or Chung Cheng in the event that any competent governmental authority in
the PRC shall have issued an order, decree or ruling or taken any other action
restraining, enjoining or otherwise prohibiting the transactions contemplated by this
Agreement; or
	 
	 	(d)	 	by the written consent of XFM and Chung Cheng.

	 	 	In event of the termination under Clauses 11.1(c) and (d), Chung Cheng shall return all
payments it has then received from XFM under this Agreement to XFM within three (3) days
following the termination.
	 
	11.2	 	Effect of Termination. In the event of termination of this Agreement as provided in
Clause 11.1, this Agreement shall forthwith become void provided that nothing herein shall
relieve any party hereto from liability for any breach of this Agreement.

	12.	 	CONFIDENTIALITY AND NON-DISCLOSURE
	 
	12.1	 	Non-Disclosure of Terms. The terms and conditions of this Agreement, including their
existence, shall be considered confidential information and shall not be disclosed by any
party hereto to any third party except in accordance with the provisions set forth below
provided that such confidential information shall not include any information that is in the
public domain other than by the breach of the confidentiality obligations hereunder.
	 
	12.2	 	Press Releases, Etc. Any press release issued by any party hereto or any member of
the Group in relation to this Agreement shall be approved in advance in writing by the each
Party to this Agreement, whose consent shall not be unreasonably withheld. No other
announcement regarding any of the terms set forth in this Agreement in a press release,
conference, advertisement, announcement, professional or trade publication, mass marketing
materials or otherwise to the general public may be made without the prior written consent of
each Party to this Agreement, whose consent shall not be unreasonably withheld.
	 
	12.3	 	Permitted Disclosures. Notwithstanding the foregoing, any party may disclose any of
the terms set forth in this Agreement (i) to its current or bona fide, employees, bankers,
lenders, partners, accountants and attorneys and other professional advisers, in each case
only where such persons or entities are under appropriate non-disclosure obligations; or (ii)
as may be required by law or the rules and regulations of any stock exchange.

23

 

	12.4	 	Other Information. The provisions of this Clause shall be in addition to, and not in
substitution for, the provisions of any separate nondisclosure agreement executed by any of
the parties hereto with respect to the transactions contemplated hereby.

	13.	 	MISCELLANEOUS
	 
	13.1	 	Successors and Assigns. Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their respective successors
and assigns any rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.
	 
	13.2	 	Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of Hong Kong.
	 
	13.3	 	Arbitration. Any dispute, controversy or claim arising out of or relating to this
Agreement, or the breach, termination or invalidity thereof, shall be settled by binding
arbitration in accordance with the UNCITRAL Arbitration Rules as present in force in the
manner set forth in this Clause:

	 	(a)	 	The procedures of this Clause may be initiated by a written notice (a
“Dispute Notice”) given by one party (a “Claimant”) to the other, but not before
thirty (30) days have passed during which the parties have been unable to reach a
resolution. The Dispute Notice shall be accompanied by (i) a statement of the
Claimant describing the dispute in reasonable detail and (ii) documentation, if any,
supporting the Claimant’s position on the dispute. Within twenty (20) days after the
other party’s (the “Respondent”) receipt of the Dispute Notice and accompanying
materials, the dispute shall be resolved by binding arbitration in Hong Kong under
the UNCITRAL Arbitration Rules. All arbitration procedures pursuant to this paragraph
(a) shall be confidential and treated as compromise and settlement negotiations and
shall not be admissible in any arbitration or other proceeding.
	 
	 	(b)	 	The parties shall agree on a single arbitrator to resolve the dispute. If the
Parties fail to agree on the designation of an arbitrator within a twenty (20)-day
period the Hong Kong International Arbitration Centre shall be requested to designate
the single arbitrator. If the arbitrator becomes disabled, resigns or is otherwise
unable to discharge the arbitrator’s duties, the arbitrator’s successor shall be
appointed in the same manner as the arbitrator was appointed.
	 
	 	(c)	 	Any award arising out of arbitration (i) shall be binding and conclusive upon
the parties; (ii) shall be limited to a holding for or against a party, and affording
such monetary remedy as is deemed equitable, just and within the scope of this
Agreement; (iii) may not include special, indirect, incidental, consequential,
special, punitive or exemplary damages or diminution in value;

24

 

	 	 	 	(iv) may in appropriate circumstances include injunctive relief; and (v) may be entered in a
court.
	 
	 	(d)	 	Arbitration shall not be deemed a waiver of any right of termination under
this Agreement, and the arbitrator is not empowered to act or make any award other
than based solely on the rights and obligations of the parties prior to termination
in accordance with this Agreement.
	 
	 	(e)	 	The arbitrator may not limit, expand or otherwise modify the terms of this
Agreement.
	 
	 	(f)	 	Each party shall bear its own expenses incurred in any arbitration or
litigation, but any expenses related to the compensation and the costs of the
arbitrator shall be borne equally by the parties to the dispute.
	 
	 	(g)	 	If any action or proceeding is commenced to construe or enforce this
Agreement or the rights and duties of the parties hereunder, then the party
prevailing in that action, and any appeal thereof, shall be entitled to recover its
attorney’s fees and costs in that action or proceeding, as well as all costs and fees
of any appeal or action to enforce any judgment entered in connection therewith.

	13.4	 	Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.
	 
	13.5	 	Titles and Subtitles. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement.
	 
	13.6	 	Notices. Unless otherwise provided, any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given upon personal
delivery to the party to be notified or upon postal service delivery, by registered or
certified mail, postage prepaid and addressed to the party to be notified at the address
indicated for such party on the signature page hereof or by facsimile at the facsimile number
set forth on the signature page hereof, or at such other address or facsimile number as such
party may designate by ten (10) days’ advance written notice to the other parties.
	 
	13.7	 	Expenses. Each of the parties hereto shall be responsible for its own costs and
expenses incurred in the preparation, negotiation and execution of this Agreement.
	 
	13.8	 	Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and
the balance of the Agreement shall be interpreted as if such provision was so excluded and
shall be enforceable in accordance with its terms.
	 
	13.9	 	Language. This Agreement shall be executed in English.

25

 

The Remainder of this Page is Intentionally Left Blank.

26

 

EXECUTION

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

	 	 	 	 	 
	Xinhua Finance Media Limited

 	 	 
	By:  	/s/ Fredy Bush
 	 	 
	 	 	 	 	 
	 	 	 
	Name:  	Fredy Bush 	 	 
	Title:  	Chief Executive Officer 	 	 
	Address:  	Unit 3905-09, 1 Grand Gateway, 1 Hong Qiao
Lu,
Shanghai 200030, PRC 	 	 
	Telephone:  	86-21-6113-5900 	 	 
	Facsimile:  	86-21-6448-4955 	 	 

 

 

	 	 	 	 	 
	Chung Cheng Co., Ltd.

 	 	 
	By:  	/s/  Shengli Zheng [with company chop of Chung Cheng Co., Ltd.]
 	 	 
	 	 	 	 	 
	 	 	 
	 	 	 	 
	Name:  	 	 	 
	 	 	 	 	 
	Title:  	 	 	 
	 	 	 	 	 
	Address:  	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Telephone:  	 	 	 
	 	 	 	 	 
	Facsimile:  	 	 	 
	 

 

 

Schedule A

First Closing Representations and Warranties

	1.1	 	Organisation and Qualification. Chung Cheng is a legal entity duly organised and
validly existing under the laws of Samoa.
	 
	1.2	 	Authorisation and Authority. Chung Cheng has taken all corporate or other action
required to authorise, and has duly authorised, the execution, delivery and performance of
this Agreement and the XFM Agreements and upon due execution and delivery the same will
constitute its legal, valid and binding obligations enforceable in accordance with its terms.
	 
	1.3	 	Power and Authority. Chung Cheng has full power and authority to make the covenants
and representations referred to herein and to execute, deliver and perform this Agreement and
XFM Agreements. The parties to the XFM Agreements are the sole legal and beneficial owner of
all the rights, interests, titles and benefits arising from and in connection with the XFM
Agreements and each party has the full power and authority to grant the rights, interests,
titles and benefits to XFM or XFM Nominee pursuant to this Agreement or the XFM Agreements.
	 
	1.4	 	Compliance with Laws and Other Instruments. Chung Cheng holds, and at all times has
held all licenses, permits, and authorizations from all governmental entities necessary for
the lawful conduct of its business pursuant to all applicable statutes, laws, ordinances,
rules, and regulations of all such authorities having jurisdiction over it or any part of its
operations. There are no violations or claimed violations of any such license, permit, or
authorization, or any such statute, law, ordinance, rule or regulation.
	 
	1.5	 	Corporate Governance. Neither the execution and delivery of this Agreement or the
XFM Agreements nor the performance by it of its obligations under this Agreement or the XFM
Agreements will (i) conflict with or result in any breach of its charter documents; (ii)
require any Consents by Governmental Entity, (iii) conflict with, result in a breach or
default of, or give rise to any right of termination, cancellation or acceleration or result
in the creation of any lien, charge, encumbrance, or restriction upon any of the properties or
Assets of it or its shares under, any law, statute, rule, regulation, judgment, decree, order,
government permit, license or order or any mortgage, indenture, note, license, trust,
agreement or other agreement, instrument or obligation to which it is a party.
	 
	1.6	 	Investor Representation. Chung Cheng would be acquiring XFM Shares for its own
account, not as a nominee or agent and for investment only and not with a view toward or for
sale in the United States connection with any distribution thereof, or with any present
intention of distributing or selling the XFM Shares in the United States. Chung Cheng
understands and acknowledges that the XFM Shares are not being registered under the U.S.
securities laws, any U.S. state securities laws or otherwise. Chung Cheng understands that the
XFM Shares cannot be sold in the United States unless they are subsequently registered under
the U.S. securities laws

 

 

	 	 	and applicable state securities laws or an exemption from such registration is available. For the avoidance of doubt, the foregoing representations are
limited to sales and distributions of XFM Shares in the United States and shall not be
construed as a representation or restrictive covenants in connection with sales or
distributions by Chung Cheng of XFM Shares outside the United States.
	 
	1.7	 	XFM Agreements. All XFM Agreements, when executed and delivered by XFM, are valid and
enforceable in accordance with their respective terms and the execution and delivery of the
XFM Agreements and all transactions contemplated thereunder have been duly authorised by all
the parties to them other than XFM. All Consents shall have been obtained for the
consummation of the transactions and performance of the obligations contemplated under the XFM
Agreements. Chung Cheng is not aware of any facts or events which may result in any of the
XFM Agreements to be terminated or not being renewed prior to or upon expiry by the relevant
parties.
	 
	1.8	 	The Closing Deliverable Agreements. On or before First Closing, each of the Closing
Deliverable Agreements will have been duly executed by the parties thereto and, as at First
Closing, will be in full force and effect and will constitute the valid and legally binding
obligations of the parties thereto enforceable in accordance with their terms at First
Closing.
	 
	1.9	 	Full Disclosure. (i) Chung Cheng is not aware of any facts which could materially
adversely affect it or the various parties to the XFM Agreements which are likely in the
future to materially adversely affect it or its businesses with the various parties to the XFM
Agreements and which have not been disclosed by or on behalf of Chung Cheng in connection with
or pursuant to this Agreement; and (ii) No representation or warranty in this Agreement, nor
any statement or certificate furnished or to be furnished to XFM pursuant to or in connection
with this Agreement contains or will contain any untrue statement of material fact, or omits
or will omit to state a material fact necessary to make the statements contained herein or
therein not misleading.
	 
	1.10	 	Reliance. The representations and warranties are made by Chung Cheng with the
knowledge and expectation that XFM are placing reliance thereon.
	 
	1.11	 	Absence of Questionable Payments. None of Chung Cheng nor any of its Affiliates,
directors, officers, agents, employees or other persons acting on its behalf, has used any
corporate or other funds for unlawful contributions, payments, gifts, or entertainment, or
made any unlawful expenditures relating to political activity to government officials or
others or established or maintained any unlawful or unrecorded funds. None of Chung Cheng nor
its Affiliates, directors, officers, agents, employees or other persons acting on their
behalf, has accepted or received any unlawful contributions, payments, gifts, or expenditures.
	 
	1.12	 	FCPA Compliance. 

	 	(a)	 	Chung Cheng is familiar with and will comply, and has introduced all necessary
controls, procedures and audits and maintained all necessary documentation and records
on a regular and up-to-date basis to so comply

 

 

	 	 	 	with the provisions of FCPA and all other laws applicable to the transactions contemplated hereunder.
	 
	 	(b)	 	Any payments made to Chung Cheng hereunder does not constitute, and Chung Cheng
will not make, offer, authorize, approve or otherwise facilitate and has not made,
offered, authorized, approved or otherwise facilitated, directly or indirectly, any
payments or money, gifts or anything of value to any Foreign Official (as defined in
subparagraph (i) below) to obtain, retain or further business activities, whether or not
in connection with its obligations hereunder, Chung Cheng’s activities or in obtaining
any other business on behalf of Chung Cheng from any governmental agency, department or
instrumentality.
	 
	 	(c)	 	In respect of any business for which Chung Cheng provides or may have provided,
Chung Cheng has not, directly or indirectly, paid, offered, or agreed to pay any
political contributions.
	 
	 	(d)	 	Chung Cheng has no undisclosed subagents or third parties who are or will be
assisting in the performance of its obligations hereunder.
	 
	 	(e)	 	Chung Cheng has no knowledge of or any reason whatsoever to believe that there
may be, any improper payments under the FCPA or any circumstances in which such payments
may be made.
	 
	 	(f)	 	All payments to be made by XFM pursuant to his Agreement are in compliance with
FCPA.
	 
	 	(g)	 	Chung Cheng has no officer, director, owner, shareholder, employee or agent that
is a Foreign Official, and will not employ any such Foreign Official during the term of
this Agreement; and
	 
	 	(h)	 	Chung Cheng will notify XFM immediately of any extortion, solicitation, demand or
other request for a bribe, gift or anything else of value by or on behalf of a Foreign
Official in connection with the performance of its obligations hereunder.
	 
	 	(i)	 	For the purposes of this Clause, a “Foreign Official” shall mean (i) any
official, employee, agent or other representative of a government agency, department or
instrumentality; (ii) any official of a political party; or (iii) any candidate for
political office.
	 
	 	(j)	 	If Chung Cheng breaches any of the covenants set forth in this Clause then,
without prejudice to any other remedies available to XFM hereunder:

	 	(i)	 	XFM shall have the right to terminate this Agreement for cause
pursuant to Clause 11;

 

 

	 	(ii)	 	XFM shall have a right of action against Chung Cheng for the
recovery of any monetary payment or other thing of value given or transferred by
Chung Cheng directly or indirectly in violation of the foregoing covenants;
	 
	 	(iii)	 	all obligations of XFM to pay Chung Cheng under this Agreement
shall cease; and
	 
	 	(iv)	 	Chung Cheng shall indemnify XFM and its officers, directors,
employees and agents for any penalties, losses, damages, expenses or fines
incurred by XFM as a result of its breach.

 

 

Schedule B

Second Closing Representations and Warranties

	1.1	 	Organisation and Qualification. Chung Cheng is a legal entity duly organised and
validly existing under the laws of Samoa.
	 
	1.2	 	Authorisation and Authority. Chung Cheng has taken all corporate or other action
required to authorise, and has duly authorised, the execution, delivery and performance of
this Agreement and the XFM Agreements and upon due execution and delivery the same will
constitute its legal, valid and binding obligations enforceable in accordance with its terms.
	 
	1.3	 	Power and Authority. Chung Cheng has full power and authority to make the covenants
and representations referred to herein and to execute, deliver and perform this Agreement and
XFM Agreements. The parties to the XFM Agreements are the sole legal and beneficial owners of
all the rights, interests, titles and benefits arising from and in connection with the XFM
Agreements and each party has the full power and authority to grant the rights, interests,
titles and benefits to XFM or XFM Nominee pursuant to this Agreement or the XFM Agreements.
	 
	1.4	 	Compliance with Laws and Other Instruments. Chung Cheng holds, and at all times has
held all licenses, permits, and authorizations from all governmental entities necessary for
the lawful conduct of its business pursuant to all applicable statutes, laws, ordinances,
rules, and regulations of all such authorities having jurisdiction over it or any part of its
operations. There are no violations or claimed violations of any such license, permit, or
authorization, or any such statute, law, ordinance, rule or regulation.
	 
	1.5	 	Corporate Governance. Neither the execution and delivery of this Agreement or the
XFM Agreements nor the performance by it of its obligations under this Agreement or the XFM
Agreements will (i) conflict with or result in any breach of its charter documents; (ii)
require any Consents by Governmental Entity, (iii) conflict with, result in a breach or
default of, or give rise to any right of termination, cancellation or acceleration or result
in the creation of any lien, charge, encumbrance, or restriction upon any of the properties or
Assets of it or its shares under, any law, statute, rule, regulation, judgment, decree, order,
government permit, license or order or any mortgage, indenture, note, license, trust,
agreement or other agreement, instrument or obligation to which it is a party.
	 
	1.6	 	Investor Representation. Chung Cheng would be acquiring XFM Shares for its own
account, not as a nominee or agent and for investment only and not with a view toward or for
sale in the United States connection with any distribution thereof, or with any present
intention of distributing or selling the XFM Shares in the United States. Chung Cheng
understands and acknowledges that the XFM Shares are not being registered under the U.S.
securities laws, any U.S. state securities laws or otherwise. Chung Cheng understands that the
XFM Shares cannot be sold in the United States unless they are subsequently registered under
the U.S. securities laws

 

 

	 	 	and applicable state securities laws or an exemption from such registration is available. For the avoidance of doubt, the foregoing representations are
limited to sales and distributions of XFM Shares in the United States and shall not be
construed as a representation or restrictive covenants in connection with sales or
distributions by Chung Cheng of XFM Shares outside the United States.
	 
	1.7	 	XFM Agreements. Immediately prior to Second Closing, all XFM Agreements are valid
and in full force and effect and enforceable in accordance with their terms and Chung Cheng
has not, nor has any other party thereto, breached any material provisions of, or
entered into default in any material respect under the terms thereof other than such beaches
or defaults that have been cured. All Consents shall have been obtained for the consummation
of the transactions and performance of the obligations contemplated under the XFM Agreements.
Chung Cheng is not aware of any facts or events which may result in any of the XFM Agreements to be terminated or not being renewed
prior to or upon expiry by the relevant parties.
	 
	1.8	 	The Closing Deliverable Agreements. On or before Second Closing, each of the Closing
Deliverable Agreements will have been duly executed by the parties thereto and, as at Second
Closing, will be in full force and effect and will constitute the valid and legally binding
obligations of the parties thereto enforceable in accordance with their terms at Second
Closing.
	 
	1.9	 	Full Disclosure. (i) Chung Cheng is not aware of any facts which could materially
adversely affect it or the various parties to the XFM Agreements which are likely in the
future to materially adversely affect it or its businesses with the various parties to the XFM
Agreements and which have not been disclosed by or on behalf of Chung Cheng in connection with
or pursuant to this Agreement; and (ii) No representation or warranty in this Agreement, nor
any statement or certificate furnished or to be furnished to XFM pursuant to or in connection
with this Agreement contains or will contain any untrue statement of material fact, or omits
or will omit to state a material fact necessary to make the statements contained herein or
therein not misleading.
	 
	1.10	 	Reliance. The representations and warranties are made by Chung Cheng with the
knowledge and expectation that XFM are placing reliance thereon.
	 
	1.11	 	Absence of Questionable Payments. None of Chung Cheng nor any of its Affiliates,
directors, officers, agents, employees or other persons acting on its behalf, has used any
corporate or other funds for unlawful contributions, payments, gifts, or entertainment, or
made any unlawful expenditures relating to political activity to government officials or
others or established or maintained any unlawful or unrecorded funds. None of Chung Cheng nor
its Affiliates, directors, officers, agents, employees or other persons acting on their
behalf, has accepted or received any unlawful contributions, payments, gifts, or expenditures.
	 
	1.12	 	FCPA Compliance. 

	 	(a)	 	Chung Cheng is familiar with and will comply, and has introduced all necessary
controls, procedures and audits and maintained all necessary

 

 

	 	 	 	documentation and records on a regular and up-to-date basis to so comply with the provisions of FCPA and all other
laws applicable to the transactions contemplated hereunder.
	 
	 	(b)	 	Any payments made to Chung Cheng hereunder does not constitute, and Chung Cheng
will not make, offer, authorize, approve or otherwise facilitate and has not made,
offered, authorized, approved or otherwise facilitated, directly or indirectly, any
payments or money, gifts or anything of value to any Foreign Official (as defined in
subparagraph (i) below) to obtain, retain or further business activities, whether or not
in connection with its obligations hereunder, Chung Cheng’s activities or in obtaining
any other business on behalf of Chung Cheng from any governmental agency, department or
instrumentality.
	 
	 	(c)	 	In respect of any business for which Chung Cheng provides or may have provided,
Chung Cheng has not, directly or indirectly, paid, offered, or agreed to pay any
political contributions.
	 
	 	(d)	 	Chung Cheng has no undisclosed subagents or third parties who are or will be
assisting in the performance of its obligations hereunder.
	 
	 	(e)	 	Chung Cheng has no knowledge of or any reason whatsoever to believe that there
may be, any improper payments under the FCPA or any circumstances in which such payments
may be made.
	 
	 	(f)	 	All payments to be made by XFM pursuant to his Agreement are in compliance with
FCPA.
	 
	 	(g)	 	Chung Cheng has no officer, director, owner, shareholder, employee or agent that
is a Foreign Official, and will not employ any such Foreign Official during the term of
this Agreement; and
	 
	 	(h)	 	Chung Cheng will notify XFM immediately of any extortion, solicitation, demand or
other request for a bribe, gift or anything else of value by or on behalf of a Foreign
Official in connection with the performance of its obligations hereunder.
	 
	 	(i)	 	For the purposes of this Clause, a “Foreign Official” shall mean (i) any
official, employee, agent or other representative of a government agency, department or
instrumentality; (ii) any official of a political party; or (iii) any candidate for
political office.
	 
	 	(j)	 	If Chung Cheng breaches any of the covenants set forth in this Clause then,
without prejudice to any other remedies available to XFM hereunder:

	 	(i)	 	XFM shall have the right to terminate this Agreement for cause
pursuant to Clause 11;

 

 

	 	(ii)	 	XFM shall have a right of action against Chung Cheng for the
recovery of any monetary payment or other thing of value given or transferred by
Chung Cheng directly or indirectly in violation of the foregoing covenants;
	 
	 	(iii)	 	all obligations of XFM to pay Chung Cheng under this Agreement
shall cease; and
	 
	 	(iv)	 	Chung Cheng shall indemnify XFM and its officers, directors,
employees and agents for any penalties, losses, damages, expenses or fines
incurred by XFM as a result of its breach.

 

 

[English
Translation Only]

Schedule C

XFM CYN Agreement

Cooperation Agreement

THIS COOPERATION AGREEMENT (“this Agreement”) is entered into by the Parties below on and of                     , 2008:

	(1)	 	China Youth Network Technology (Beijing) Co., Ltd., a limited liability company, whose
address is at 16 and 17F, Changbao Tower, No.1 Anhuabeili, Guangqumen Inner Street, Chongwen
District, Beijing, China (hereinafter referred to as “China Youth Technology”).
	 
	(2)	 	China Youth Network Advertising (Beijing) Co., Ltd., a limited liability company, whose
address is at Room 705, 7F, No.38, Chaowai Street, Chaoyang District, Beijing, China
(hereinafter referred to as “China Youth Advertising”); and
	 
	(3)	 	Beijing Xintai Huade Advertising Co., Ltd. , a limited liability company, whose address is
at Room 2102, 21F, Central International Trade Center, No.6A, Jianguomen Outer Street,
Chaoyang District, Beijing, China (hereinafter referred to as “XINTAI HUADE”).

(The parties above are hereinafter referred to individually as a “Party” and two or three parties
above are hereinafter referred to collectively as the “Parties”.)

WHEREAS,

	(A)	 	China Youth Technology is a business entity controlled by the Chinese Communist Youth League.
Entrusted by the Chinese Communist Youth League, China Youth Technology takes charge of,
operates and holds the business investment related to the computer network under the Chinese
Communist Youth League. In addition, the CYL Movie Center (“the Center”) is an affiliate of
China Youth Technology and also controlled by the Chinese Communist Youth League. The Center
has been approved by the State Administration of Radio Film and Television (“the SARFT”) and
has obtained the Network Audio-Visual License (as defined below) issued by the SARFT to
publish the audio-visual contents over the information network;
	 
	(B)	 	China Youth Advertising (41% of its equity is owned and held by China Youth Technology) have
obtained some advertising rights granted by China Youth Technology to advertise through the
network of China Youth Technology;
	 
	(C)	 	China Youth Advertising, China Youth Technology, XINTAI HUADE and Chung Cheng Co., Ltd. have
entered into confirmation agreement dated                     , 2008;

1

 

	(D)	 	China Youth Technology and XINTAI HUADE intend to cooperate with respect to the said network
and other business opportunities in relevant fields and China Youth Advertising also fully
supports such cooperation.

NOW, THEREFORE, the Parties, after friendly negotiation and on the basis of equality and mutual
benefit, hereby enter into this Agreement upon and subject to the following terms and conditions
as set forth below:

			
	1.	 	Definitions and interpretations

	1.1	 	Definitions

Unless otherwise defined or interpreted herein, the following terms in this Agreement shall have
the following meanings:

“Affiliate” refers to, with respect to a Party, any company or entity controlled by or under
common control with such party.

“Control” or “Controlled” (or any term related thereto) refers to any direct or indirect power to
appoint the management of an entity (or enable such appointment) to act as a trustee, executor,
agent or in any other capacity in passing any voting security, voucher contract, credit arrangement
or commission. For the purpose of this definition, if an entity owns or holds over 50% of the
voting equity interest in another entity, the former entity shall be regarded as controlling the
latter entity.

“Effective Date” refers to the signing date of this Agreement.

“Intellectual
property” refers to any nation’s patents, trademarks, service logos, trade names,
design rights (whether registered or not) as well as any applications, copyrights and other
transferrable intellectual properties (whether registered or not) for any of the above, including
but not limited to the format, page, appearance and feel of any content.

“China Youth Networks” refers to the wired or wireless networks that are accessible to the public
and exist in one or two forms as below:

	(i)	 	Websites and web pages whose URL are www.cycnet.com,
www.cycnet.com.cn, www.youth.cn and the
contents operated by China Youth Technology on these websites and web pages;
	 
	(ii)	 	Websites, web pages and contents operated by China Youth Technology named “China Youth
networks” (or renamed)

China Youth network advertisements refer to advertisements published on the China Youth network to
directly or indirectly introduce, promote and popularize relevant commodities, services and brands.

China Youth network activities refer to kinds of activities held over the China Youth networks, by
using their brands or in their names in the forms including but not limited to leaflet
distribution, evaluation and comparison, salon, lecture, forum, exhibition, advertising and
large-scale topic activity.

2

 

Rights to operate advertisements and activities refer to Article 2.1.2 below.

“Entities” refers to any natural persons, legal persons, companies, associations, partnerships,
organizations, businesses, firms, joint ventures, trusts, non-social organizations or any other
entities or organizations and shall include any government agencies.

	1.2	 	Interpretations

Unless otherwise provided for, any reference to an “annex” or “schedule” is to an annex or schedule
hereto. Any reference to an “article” or “clause” is to an article or clause of this Agreement.

The singular words in this Agreement include the plural ones if applicable, and vice versa.

The words with a specific gender shall include all other genders.

All headings contained herein are for reference only, and shall not be used to interpret this
Agreement.

			
	2.	 	Cooperation and Granting of Rights

	2.1	 	Rights to operate China Youth network advertisements and activities
	 
	2.1.1	 	China Youth Technology and XINTAI HUADE hereby agree to mutually cooperate, jointly develop,
establish and operate the China Youth networks subordinated to China Youth Technology pursuant
to this Agreement. The Center possesses the License for Transmitting Audio-Visual Programs
over Information Networks (No.0105108 now) (“Network Audio-Visual License”) issued by the
SARFT, and China Youth Technology possesses the Business License for Telecommunications and
Information Services (ICP 050705) (“ICP Certificate”) and the License for Internet News
Information Services (No. 1012006007) issued by the Beijing Communication Authority, which are
needed to establish, develop and operate the China Youth networks. The Center has exclusively
authorized China Youth Technology to establish, develop and operate the China Youth networks.
	 
	2.1.2	 	China Youth Technology agrees, as of the execution date of this Agreement, to grant XINTAI
HUADE the rights to operate China Youth network advertisements and activities, i.e. during its
term, XINTAI HUADE is entitled to exclusively operate China Youth network advertisements, and
to non-exclusively operate China Youth network activities (but XINTAI HUADE needs to get the
consent from China Youth Technology if it intends to organize China Youth network activities
in the name of the China Youth networks).
	 
	2.1.3	 	Within the valid term of this Agreement, China Youth Technology shall not operate
advertisements on its own, by or authorizing a third party, and guarantee that no any third
party may operate advertisements. Unless otherwise stipulated in this Agreement, XINTAI HUADE
is entitled to obtain all incomes from operating advertisements and activities. In this term,
China Youth Technology ensure that it will not or any other party has no right to charge the
advertising income in any form (except for the income from the advertisements finished prior
to the signing date), if any, such income shall also belong to

3

 

	 	 	XINTAI HUADE or its designated party, and China Youth Technology shall request the third
party to make direct payment or to provide the economic benefits to XINTAI HUADE or its
designated party.
	 
	2.1.4	 	If XINTAI HUADE or its designated party is engaged in the business pursuant to this
Agreement, China Youth Technology shall guarantee their business interests, and in the
principle of co-benefits, try its best to provide sufficient guarantees and assistances in
terms of advertising space, layout, release and activities, including but not limited to
guarantee that:

	 	(a)	 	XINTAI HUADE or its designated party is entitled to deliver advices with
respect to the form design, column setting and layout of advertisements;
	 
	 	(b)	 	The advertising space is adequate enough, and advertisements shall be released
on the layout according to the advertising form, effect and time provided by XINTAI
HUADE or its designated party.
	 
	 	(c)	 	The relevant advertising statistical reports are delivered to XINTAI HUADE or
its designated party on a quarterly basis, including the browse volume, click volume
and click-through rate, etc.

	2.1.5	 	XINTAI HUADE shall not transfer all the rights and obligations hereunder to any third party
as a whole, but is entitled to sub-contract or distribute relevant operation rights under this
Agreement, shall be responsible for damages to China Youth networks by sub-distributors and
sub-contractors from relevant operation under this Agreement, and compensate for all economic
losses arising therefrom.
	 
	2.2	 	Operation of China Youth networks
	 
	2.2.1	 	Unless otherwise stipulated in this Agreement, China Youth Technology shall keep China Youth
networks in a good work order, and improve their quality and enhance their popularity,
including but not limited to:

	 	(a)	 	Guarantee the lawful and smooth operation of China Youth networks;
	 
	 	(b)	 	Popularize China Youth networks on all present media platforms, and provide
slogan links and/or menus on Home pages of internet websites owned or controlled by
China Youth Technology or its affiliates;
	 
	 	(d)	 	Keep China Youth network accessible 24 hours, every day, every week, and whole
year (excluding the system maintenance period)
	 
	 	(e)	 	Be responsible for and guarantee that all information (including but not
limited to contents) proposed to be published on China Youth networks comply with all
applicable laws; and
	 
	 	(g)	 	Provide or create contents for China Youth networks from time to time.

	2.3	 	Confirmation of China Youth Advertising

4

 

	 	 	China Youth Advertising hereby expressively agrees the cooperation under this Agreement and
authorization to XINTAI HUADE or its designated party, and waives the advertising rights
related to the China Youth networks of it, or probably obtained from China Youth Technology
or any other party, especially for those conflicting or competing with rights of XINTAI
HUADE or its designated party under this Agreement, or with such possibilities, and those
possibly affecting the said rights.

			
	3.	 	Other aspects of cooperation

	3.1	 	Required permits and approvals
	 
	 	 	China Youth Technology guarantees that, it will urge and guarantees the Center to keep the
legality and validity of the Network Audio-Visual License, and uninterruptedly, exclusively
authorize China Youth Technology to operate the China Youth networks and transmit
audio-visual programs over the networks within the term any extension thereof, and have an
exclusive cooperation thereupon.
	 
	 	 	China Youth Technology ensures the legality and validity of the ICP Certificate and other
licenses, approvals and consents necessary to establish, operate, maintain and expand the
China Youth networks within the term any extension thereof.
	 
	 	 	China Youth Technology guarantees that it will urge and guarantees the Center to
successfully obtain the licenses necessary to operate the China Youth networks from time to
time, including but not limited to rights to transmit audio-visual programs over the mobile
edition of the China Youth networks if China Youth Technology and XINTAI HUADE agree to
expand the scope of the Network Audio-Visual License; further expansion of scope of the ICP
Certificate for China Youth Technology to provide information services over the mobile
edition of the China Youth networks.
	 
	 	 	China Youth Technology guarantees that, within 7 days after the effective date, it will (a)
obtain a written confirmation letter from the Center indicating its consent and support to
the proposed cooperation, and provide a duplicate of the letter to XINTAI HUADE; and (b)
obtain a written confirmation letter from the WorldCom Technology (Beijing) Co., Ltd.
(another shareholder of China Youth Advertising) indicating its consent to authorize
relevant rights to operate advertisements and activities under this Agreement to XINTAI
HUADE and its designed party and the waiver of such rights by China Youth Advertising, and
provide a duplicate of the letter to XINTAI HUADE.
	 
	 	 	China Youth Technology further guarantees that, it will be responsible for the application
of proposed businesses or other business proposed to be developed and operated by China
Youth Technology in this Agreement, and try its best to obtain all other needed approvals,
licenses, permissions and registrations from the government organs or authorities of the
People’s Republic of China.

			
	4.	 	Consideration

5

 

	4.1	 	The Parties agree and acknowledge that XINTAI HUADE shall make the following payment to China
Youth Advertising or its designated party, and such payment constitutes a consideration of all
rights and interests under this Agreement obtained by XINTAI HUADE:

	 	(a)	 	Within three years calculating from the signing date of this Agreement to the
third anniversary date (the first service period is calculated from the signing date of
this Agreement to the first anniversary date, and other two years are calculated by
analogy), (i) at the first or seventh month of each service period, XINTAI HUADE shall
directly or indirectly pay RMB250,000 or foreign exchange of equal value to China Youth
Technology (i.e. RMB500,000 or foreign exchange of equal value for each service period
in total); and (ii) within 30 working days ended after a service period, XINTAI HUADE
directly or indirectly pay 15% of its net income from the China Youth network
advertisements to China Youth Technology. To avoid doubts, the net income in this
article refers to the amounts of total income deducting the business tax.
	 
	 	(b)	 	During the periods calculating from the fourth to the twentieth service period,
(i) at the first, fourth, seventh and tenth month of each service period, XINTAI HUADE
shall directly or indirectly pay RMB250, 000 or foreign exchange of equal value to
China Youth Technology (i.e. RMB1 million or foreign exchange of equal value for
each service period in total); and within 30 working days ended after a service
period, XINTAI HUADE directly or indirectly pay the amounts after (x)
minus (y) or foreign exchange of equal value: (x): 20% of its net income from the China Youth
network advertisements to China Youth Technology; (y): RMB 1 million ((ii) apply in
case of (x)>(y)).
	 
	 	 	 	If XINTAI HUADE fails to make payment within the said period due to its defaulting
act, XINTAI HUADE shall pay the overdue fine at an interest rate of 0.1% each day
for the delayed payment.

	4.2	 	In order to determine this Agreement amounts of said income between XINTAI HUADE and the
China Technology, XINTAI HUADE shall disclose to China Youth Technology all agreements related
to operate China Youth networks advertisements and activities, and China Youth Technology is
entitled to review the agreements and finish this review within 15 working days after each
service period, and XINTAI HUADE shall provide assistance.

			
	5.	 	Term and termination

	5.1	 	Term

This Agreement becomes effective from, and keeps valid within 20 years after the effective date
(“Term”), unless terminated according to Article 5.2.

XINTAI
HUADE may renew this Agreement in a form of sending written notice at least 60 days before
the expiry date for extension of ten years, i.e. the term is extended for ten years.

6

 

	5.2	 	Termination
	 
	5.2.1	 	Both China Youth Technology (one Party) and XINTAI HUADE (the other party) may terminate
this Agreement under the following circumstances:

	 	(a)	 	If the other party materially defaults on this Agreement, and such defaulting
act is beyond remedy;
	 
	 	(b)	 	If the other party materially defaults on this Agreement, the party fails to
make remedy within 30 days after receiving the written notices from the non-defaulting
party although such defaulting act may be remedied,
	 
	 	(c)	 	If the other party is closed down or becomes bankrupt.

			
	6.	 	Further warranties

China Youth Technology and China Youth Advertising (as one party) and XINTAI HUADE (as the other
party) hereby agree they shall take further actions and sign any further document or file at their
own expenses as reasonably required so as to make the proposed transactions and provisions under
this Agreement and any other agreements referred in this Agreement come into force. In particular,
on the basis of compliance with the said regulations, the Parties agree to amend this Agreement as
necessary so as to comply with the applicable laws (including but not limited to the Chinese laws).

			
	7.	 	Representations and warranties

	7.1	 	Representation and warranties by each party
	 
	 	 	Each Party represents and warrants to the other parties that:

	 	(a)	 	It is established and validly existing pursuant to the governing laws where it
is registered or established, and has a completely legal status and full power to sign
and implement this Agreement and any other agreement related to the proposed
cooperation in this Agreement, and of which it is one party.
	 
	 	(b)	 	Such acts as execution, delivery and performance of this Agreement and any
other agreement related to the proposed cooperation in this Agreement, and of which it
is one party have been properly authorized if necessary as required. It has properly
signed and delivered this Agreement and each other agreement related to the proposed
cooperation in this Agreement on their signing and delivery day. Such agreements have
constituted, or will, effective and bounded obligations, and their provisions may be
implemented.
	 
	 	(c)	 	Such acts as execution, delivery and performance of this Agreement and any
other agreement related to the proposed cooperation in this Agreement, and of which it
is one party shall not:

	 	(i)	 	Need to obtain or cope with any authorization, consents,
archiving, registration or notification from or at any government organ of the
People’s Republic of China; or

7

 

	 	(ii)	 	Breach any agreement, obligation or order, of which it is one
party or to be governed

	7.2	 	Further representation and warranties by China Youth Technology and China Youth
Advertising
	 
	 	 	China Youth Technology and China Youth Advertising hereby make further representation and
warranties within the term and any extension thereof:

	 	(a)	 	They are, and always, entitled to authorize all rights under this Agreement to
XINTAI HUADE. Such rights have no secured interest, claims and rights of any third
party; and
	 
	 	(b)	 	With respect to the authorization to XINTAI HUADE under this Agreement,
relevant rights have been authorized, permitted and licensed from all third Parties as
required.

			
	8.	 	Defaulting liability and indemnification

	8.1	 	If China Youth Technology or XINTAI HUADE terminates this Agreement ahead of time according
to Article 5.2.1 of this Agreement, the defaulting party needs to compensate for losses of the
non-defaulting party.
	 
	8.2	 	A party (individually as “Indemnifying Party”) shall be responsible for indemnifying other
Parties, affiliates of other Parties, and their directors, staffs and employees (collectively
as “Indemnified Parties”, individually as “Indemnified Party”) and prevent them from damages
and losses of total costs, expenses, debts, claims and legal procedures arising from, or
specific to (suffered by) any Indemnified Party and related to the following matters (unless
such damages and losses are caused by a gross negligence or intentional act of the Indemnified
Party):

	 	(a)	 	Exercise of rights granted to China Youth Technology or XINTAI HUADE in this
Agreement; and
	 
	 	(b)	 	The defaulting acts of the Indemnifying Party on any provisions of this Agreement, or the
Indemnifying Party’s (or any staff, employee, agent or any other person related to all
authorized rights under this Agreement due to any reason) act, omission, fault or
negligence of any kind.

			
	9.	 	Confidentiality

	9.1	 	The Parties agree that, with respect to all information, materials and documents marked as
confidential by other Parties and obtained due to execution and implementation of this
Agreement, or related to this Agreement, the receiving party shall keep them confidential, and
shall not disclose them to any third party without consents of the other relevant Parties.
	 
	9.2	 	The Parties agree that, any party shall not use any information, material or documents
obtained by other Parties pursuant to this Agreement, for any other unnecessary purpose,

8

 

	 	 	or beyond this Agreement, or unfavorable for the proposed cooperation of this Agreement, and
also shall not directly or indirectly provide them to any other third party for use.
	 
	9.3	 	The provisions of Articles 9.1 and 9.2 above shall not apply to the following disclosure: (a)
disclosure to their consultants, agents, shareholders, directors or
managers; (b) disclosure to
financial institutes and banks in order to obtain the consents or financing of the transaction
under this Agreement; (c) compulsory disclosure by the judicial or
administrative procedure, or to other requirements in accordance with laws (in this
circumstance, the disclosing party shall immediately notify other Parties in writing); and (d)
disclosure to a party (or its affiliates), governments, regulatory organs, stock exchanges or
institutions governing the transaction under this Agreement.

			
	10.	 	Governing law and dispute resolution

	10.1	 	Governing Law
	 
	 	 	The formation, validity, interpretation and performance of and resolution of disputes in
connection within this Agreement shall be governed by and interpreted in accordance with
Chinese laws.
	 
	10.2	 	 Dispute resolution
	 
	 	 	Any issue and dispute arising from or related to this Agreement, including but not limited
to any issue related to the existence and effectiveness (including the effectiveness and
scope of this arbitration clause) or termination of this Agreement (collectively “disputes”,
individually “dispute”), may be submitted to the China International Economic and Trade
Arbitration Commission (“CIETAC”) for arbitration as required by any party, if a party
informs the other Parties in writing of the failure to resolve disputes through friendly
negotiation within 60 days after occurrence of all disputes. The Parties hereby agree that,
any and all disputes shall be finally submitted to the CIETAC in Beijing, China for
arbitration and apply the arbitration rules in effect. If any provision of this Agreement
fails to be implemented due to any reason, it shall be implemented to the most extent to
realize its intention, while other provisions of this Agreement shall remain fully valid and
effective. The arbitration commission shall be composed of three arbitrators, who are
appointed in accordance with the arbitration rules of the CIETAC. The arbitration place is
in Beijing, China, in Chinese (including the arbitral award and its supporting language).
The arbitral award is final and bound by relevant Parties. The Parties shall continuously
implement this Agreement in addition to the arbitration during its process.

			
	11.	 	Miscellaneous

	11.1	 	Entire agreement
	 
	 	 	This Agreement constitutes the entire understanding among the Parties
with respect to the subject matter hereof and replaces and substitutes
all previous warranties, understandings, contracts or other undertakings,
whether oral or written, and agreements among China

9

 

	 	 	Youth Technology, China Youth Advertising, Chung Cheng Co., Ltd. and/or XINTAI
HUADE.
	 
	11.2	 	Amendments
	 
	 	 	No amendment to this Agreement may be made except by a
written instrument executed by the duly authorized
representatives of the Parties.
	 
	11.3	 	Severability
	 
	 	 	Should any provision of this Agreement be held illegal or
unenforceable under the laws of any jurisdiction, such
provision shall be invalid to the extent of such
illegality or unenforceability within this jurisdiction,
and to the maximum extent permitted by law, shall not
affect its legality and enforceability within any other
jurisdiction.
	 
	11.4	 	No waiver
	 
	 	 	Except as waived in writing, if other Parties default on
this Agreement, no performance of this Agreement by a
party shall be deemed as a waiver of relevant rights of
this Agreement. Failure of or delay in performance of
relevant rights under this Agreement by a party shall not
be deemed as a waiver of such rights.
	 
	11.5	 	Notices
	 
	 	 	All notices, requests, requirements and other communications required or permitted by this
Agreement shall be made in Chinese in writing, and be served to the confirmed address by the
certificated Express or registered letter (postage pre-paid, receipt required).
	 
	11.6	 	Succession and transfer
	 
	 	 	This Agreement shall bind and inure to the benefit of the respective
successors and permitted assigns of the Parties. Unless otherwise
expressly permitted herein, none of the Parties may assign or transfer
any of its rights or interests hereunder without the prior written
consent of the other Parties, and any attempted transfer without such
written consent shall be deemed invalid.
	 
	11.7	 	Language
	 
	 	 	This Agreement is written in Chinese. All schedules and annexes hereto
(if any) are made an integral part of this Agreement, and have the same
effect as this Agreement.
	 
	11.8	 	Counterparts
	 
	 	 	This Agreement is executed in triplicate for each language, one copy for
each Party hereto.

[Signature page below]

10

 

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the Parties below as of the
date first above written.

China Youth Network Technology (Beijing) Co., Ltd.

By: _________

Name:

Title:

China Youth Network Advertising (Beijing) Co., Ltd.

By: _________

Name:

Title:

Beijing
Xintai Huade Advertising Co., Ltd.

By: _________

Name:

Title:

11

 

[English
Translation Only]

Schedule D

XFM Tongji Agreement

Cooperation Agreement

THIS COOPERATION AGREEMENT (“this Agreement”) is entered into as of      , 2008 by and between:

	(1)	 	Beijing Tongji Xinke Technology Development Co., Ltd., a limited company located at 1706, A1,
Changyuan Tiandi, No.18, Suzhou Street, Haidian District, Beijing;(Hereinafter called as
“Tongji”); and
	 
	(2)	 	Beijing
Xintai Huade Advertising Co., Ltd., a limited company located at 2102, Fl 21, Building
1st, No. Jia-6, Jianguomenwai Street, Chaoyang District, Beijing(Hereinafter
called as “XTHD”).

(The above parties are separately referred to as “one party” or collectively referred to as “the
Parties”.)

WHEREAS,

	(A)	 	Tongji is a limited company established and registered in accordance with the PRC laws with
business license approved and issued by bureau of commerce and industry and expertise and
experience in design, manufacture, agency and release of advertisings;
	 
	(B)	 	Tongji has been authorized the exclusive operation right of advertising on the campus service
platform of graduate employment information (hereinafter called as “Electronic Display
Platform”) by Beijing College Employment Counseling Center and Hubei College Employment
Counseling and Service Center;
	 
	(C)	 	Tongji, XTHD and Chung Cheng Co., Ltd had executed the
confirmation agreement in August
2008;
	 
	(D)	 	Tongji and XTHD have intent to establish mutual cooperation and provide related cooperation
hereon subject to the above platform and other business opportunities in relevant field.

NOW, THEREFORE, the Parties, after friendly negotiation and on the basis of equality and mutual
benefit, hereby enter into this Agreement upon and subject to the following terms and conditions
as set forth below:

	1.	 	Definitions and interpretations

1

 

	1.1	 	Definitions
	 
	 	 	Unless otherwise defined or interpreted herein, the following terms in this Agreement shall
have the following meanings:

“Affiliate” refers to, with respect to either party, any company or entity controlled by or under
common control with such party.

“Control” or “controlled” (or any term related thereto) refers to any direct or indirect power to
appoint the management of an entity (or enable such appointment) to act as a trustee, executor,
agent or in any other capacity in passing any voting security, voucher contract, credit arrangement
or commission. For the purpose of this definition, if an entity owns or holds over 50% of the
voting equity interest in another entity, the former entity shall be regarded as controlling the
latter entity.

“Effective date” refers to the date of executing this Agreement.

“Intellectual Property” means any patent, trade mark, service mark, design right (whether
registerable or not), any application, copyright and other transferable intellectual properties
(whether registerable or not) of the above, including but not limited to any format, impression,
appearance and sensation.

“Electronic Display Platform” refers to college graduate employment information campus service
platforms in more than 30 universities in Beijing and Hubei Province, which are designated by
Beijing College Employment Counseling Center and Hubei College Employment Counseling and Service
Center and which are information communication and service platforms to provide recruitment,
enterprise promotion, employment policy and service information to college graduates through
information network and electronic display terminal, including two basic parts of electronic
display screen and lamp housing frame seat (i.e. definition in 2.1.1, details in Annex 1 ). The
above definitions apply in case of other provinces or municipalities directly under the Central
Government.

“Advertising” means the direct or indirect introduction, marketing or forms to promoting relative
commodity, service and brand released from the platform (for avoiding doubt, the advertising
includes any information issued on the screen of the Electronic Display Platform, whose volume is
50% of the total volume released by Tongji, furthermore, any information related to Beijing and
Hubei Province shall comply with the regulations of university cooperation agreement (i.e.
definition in 2.1.1, details in Annex 1) and any cooperation agreement concluded by Tongji and
other universities).

“Exclusive Advertising Operation Right” means the definition in Article 2.1.2.

“Entities” refers to any natural persons, legal persons, companies, associations, partnerships,
organizations, businesses, firms, joint ventures, trusts, non-social organizations or any other
entities or organizations and shall include any government agencies.

	1.2	 	Interpretations

2

 

Unless otherwise provided for, any reference to an “annex” or “schedule” is to an annex or schedule
hereto. Any reference to an “article” or “clause” is to an article or clause of this Agreement.

The singular words in this Agreement include the plural ones if applicable, and vice versa.

The words with a specific gender shall include all other genders.

All headings contained herein are for reference only, and shall not be used to interpret this
Agreement.

	2.	 	Cooperation and Granting of Rights
	 
	2.1	 	Exclusive Operation Right of Advertising on Electronic Display Platform
	 
	2.1.1	 	Tongji and XTHD hereby agree to establish mutual cooperation to jointly develop, construct
and operate Tongji management platform. Tongji has respectively executed the cooperation
agreements (“College Cooperation Agreement”) on investment, manufacture, installation,
operation and maintenance of Electronic Display Platform with Beijing College Employment
Counseling Center and Hubei College Employment Counseling and Service Center. Beijing College
Employment Counseling Center and Hubei College Employment Counseling and Service Center have
granted Tongji exclusive ownership and operation rights of the Electronic Display Platform,
rights to use this platform to release advertisings and relevant technical support and
services.
	 
	2.1.2	 	Tongji agrees that from the execution date of this Agreement Tongji grants to XTHD the
Exclusive Advertising Operation Rights of Electronic Display Platform under relevant college
cooperation agreements, i.e. in the term of this Agreement, the releases of Electronic Display
Platform advertises are solely operated by XTHD or its designated party, and Tongji
guarantees that the relevant colleges, Beijing College Employment Counseling Center and Hubei
College Employment Counseling and Service Center will not release advertising platform same or
similar to this Agreement on their discretion or through others.
	 
	2.1.3	 	During the effective period in this Agreement, subject to this Electronic Display Platform,
Tongji may not release advertising business on its discretion or by any third party or grant
advertising operation rights to any third party, and guarantee to operate the platform without
the assistance of any third party. Except for definite regulations herein, XTHD is entitled to
obtain all revenue from the advertising operation rights. During effective period herein,
Tongji ensures itself or any other party not to charge any form of revenue for platform
advertising from any parties (except for the revenue from any platform advertising before
execution date of this Agreement), if any, the revenue shall attribute to XTHD or its
designated party. Tongji shall designate the third party to pay or the third party to pay the
expense or directly provide the economic benefits.
	 
	2.1.4	 	For the purpose that XTHD or its designated party engage in business pursuant to this

3

 

	 	 	Agreement, Tongji shall ensure the business benefits of XTHD and its designated party, and
make best efforts to provide sufficient guaranty and cooperation for advertising space, page
arrangement and release upon mutual benefits, including but not limited to:

	 	(a)	 	To guarantee the suggestion right of form design, figuration of adv column, adv
page arrangement, etc of platform advertising of XTHD or its designated party.
	 
	 	(b)	 	To ensure sufficient advertising space and release on the pages of XTHD or its
designated party pursuant to the advertising form, effect and time provided by XTHD or
its designated party under the policy.
	 
	 	(c)	 	To make XTHD obtain the written consent of Beijing College Employment
Counseling Center and Hubei College Employment Counseling and Service Center on related
rights herein.

	2.1.5	 	The Parties confirm that subject to Beijing and Hubei Province the cooperation scope of the
Parties herein limits to the college cooperation agreement regulated in Article 2.2.1 and
agreements with universities in Beijing and Hubei Province.
	 
	2.2	 	Platform Operation
	 
	2.2.1	 	Except for other liabilities regulated herein, Tongji shall ensure Electronic Display
Platform in good operation situation and improvement of the quality of Electronic Display
Platform from time to time with related expenses undertaken by CHUNG.
	 
	2.2.2	 	Tongji guarantees that any advertisings provided by CHUNG hereupon shall be released on
schedule and without barrier.
	 
	2.3	 	Confirmation by Tongji of Right Granting
	 
	 	 	Tongji hereby agrees to the cooperation hereunder and all authorities of XTHD and/or its
designated party, and waives rights on platform advertising that Tongji owns or possibly
obtains from any other places, especially those rights conflicting or competing to all
the rights granted to XTHD and/or its designated party and those rights which might
impact on the execution of all the rights granted XTHD and/or its designated party under
the agreement.
	 
	 	 	Within 10 working days upon execution of this Agreement, Tongji shall make XTHD obtain the
written consent of Beijing College Employment Counseling Center and Hubei College Employment
Counseling and Service Center on related rights herein.

	3.	 	Consideration
	 
	3.1	 	Subject to the rights and benefits obtained by XTHD herein, XTHD shall pay the following
amounts to Tongji:

	 	(a)	 	after the agreement comes into force, if Tongji executes new college
cooperation agreements on any advertising of Electronic Display Platform or other
platforms with other college graduate employment counseling centers besides Beijing and
Hubei Province, Tongji shall give prior written notice to XTHD who
shall act as

4

 

	 	 	 	one party to execute new college cooperation agreements and agreements for specific
items, and XTHD is entitled to give written or oral notice to Tongji to accept or
refuse to execute new college cooperation agreement and new college cooperation
agreements and agreements for specific items (if Tongji has made best efforts but
relevant college graduate employment counseling centers and universities are still
willing to enter into the abovementioned relevant agreements with Tongji (not
XTHD), Tongji shall definitely express specific articles of this Agreement to XTHD.
If XTHD agrees in written the specific articles, Tongji shall execute with the
abovementioned agencies and transfer all the rights and benefits from the agreement
to XTHD after execution and guarantee the legality of the transference; if XTHD
disagrees the specific articles herein, Tongji may not in its name or make any
third party to execute relevant agreement with related college graduate employment
counseling center and related universities. Under the condition of not lower than
the conditions of Beijing or Hubei Province (i.e. at least 30 universities, 125
Electronic Display Platforms and not less than 10 years of exclusive operation
period of Electronic Display Platform advertising) and XTHD has confirmed in
written relevant contract terms, XTHD shall pay Tongji not less than RMB 5 million of
resource-procurement expenses (2 million RMB upon execution of cooperation between
Tongji and relevant college graduate employment counseling center and 3 million RMB
upon execution of cooperation between Tongji and not less than 30 universities) .
	 
	 	(b)	 	the expenses on investment, manufacture and installation of Electronic Display
Platform in above (a) shall be undertaken by XTHD . The manufacture and installation
expenses of Electronic Display Platform are 19000 RMB per set, which shall be paid upon
stage of installation. The expenses on investment, manufacture and installation of
Electronic Display Platform in Beijing and Hubei Province shall be
borne by Tongji.
	 
	 	(c)	 	Under the conditions as follows, XTHD shall pay 10% of advertising revenue from
the Electronic Display Platform advertisings herein to Tongji through independent
account before the second month of next contract year:

	 	(i)	 	Tongji can promote the operation support from
relevant department and unit to XTHD;
	 
	 	(ii)	 	Tongji can guarantee that the application of
Electronic Display Platform license and business operation of XTHD
is free from any interference of education committee in possible provinces
and/or universities who might execute college cooperation agreements.

	3.2	 	To determine the amount of advertising revenue in Article 3.1(d), XTHD shall disclose to
Tongji the information on the relevant operation platform advertising and activities concluded
by Tongji with entities in other provinces and municipalities directly under the Central
Government (except for Beijing and Hubei Province) , Tongji is entitled to review the
abovementioned agreement in 15 working days after each contract year with the cooperation of
XTHD.

5

 

	3.3	 	After the conclusion of this Agreement, Tongji shall invest and manufacture at least 125
electronic display screens and lamping frame seats designated by Beijing College Employment
Counseling Center and at least 125 electronic display screens and lamping frame seats for not
less than 30 universities designated by Beijing College Employment Counseling Center, which
shall be completed into operation before December 31 2008.
	 
	3.4	 	Tongji is liable to grant the operation right of advertising and activities of all electronic
display and lamping frame seats in all universities to XTHD, which has been obtained or will
be obtained by Beijing College Employment Counseling Center and Hubei College Employment
Counseling and Service Center.
	 
	3.5	 	Tongji is liable to grant the operation right of advertising and activities of all electronic
display and lamping frame seats in all universities to XTHD, which come from all the
agreements concluded by Tongji and the employment counseling centers beside Beijing and Hubei
Province.
	 
	3.6	 	Pursuant to the agreement between Tongji and Hubei College Employment Counseling and Service
Center (as Annex 1) , Tongji shall pay the following amounts (Details in Annex 1) to Hubei
College Employment Counseling and Service Center : (1) 10000 RMB upon conclusion with each
universities in Hubei Province; (2) information review expenses in each year. Tongji confirms
that it has paid no amount except for (1) RMB upon conclusion with                      university; (2) information review expenses in each year. The Parties confirm that
subject to the above (1) and (2) XTHD shall undertake the residual unpaid amount except for
the amount paid by Tongji.
	 
	3.7	 	Pursuant to the agreement between Tongji and Beijing College Employment Counseling Center (as
Annex 1), Tongji shall pay the following amounts (Details in Annex 1) to Beijing College
Employment Counseling Center: (1) 12000 RMB of coordination management expense upon conclusion
with each universities in Beijing; (2) information review expenses in each year. Tongji
confirms that it has paid no amount except for (1) RMB upon conclusion with
                     university; (2) information review expenses in each year. The Parties
confirm that subject to the above (1) and (2) XTHD shall undertake the residual unpaid amount
except for the amount paid by Tongji.
	 
	3.8	 	The Parties confirm that the Parties and their designated party shall be liable for any
breach of relevant laws and regulations in normal operation except that the liability of
breach shall be borne by the other party upon regulations herein.

	4.	 	Representations and Warranties
	 
	4.1	 	Representations and warranties by each party
	 
	 	 	Each party represents and warrants to the other party that :

	 	(a)	 	It is duly registered and validly existing under applicable laws of the place
of registration, it has the legal standing and power to sign and perform this Agreement
and any other agreement to which it is a party and that is related to the cooperation
deliberated in this Agreement.

6

 

	 	(b)	 	Its execution, delivery and performance of the agreement and any other
agreement to which it is a party and that is related to the cooperation deliberated in
this Agreement are duly authorized. The agreement and any other agreement to which it
is a party and that is related to the cooperation deliberated in this Agreement have
been duly executed and delivered by it on the execution and delivery dates of such
agreements and are legally binding and can be enforced pursuant to the terms therein.
	 
	 	(c)	 	Its execution, delivery and performance of this Agreement and any other
agreement to which it is a party and that is related to the cooperation deliberated in
this Agreement will not :

	 	(i)	 	Require the obtaining of any authorization, consent, filing,
registration or notice of any Chinese government agencies, or request any
authorization, consent, filing, registration or notice to be gone through at
any Chinese government agencies; or
	 
	 	(ii)	 	Give rise to the breach of any agreements, obligations or
orders to which it is a party.

	4.2	 	Representations and warranties by Tongji
	 
	 	 	Tongji hereby represents and warrants to XTHD that in the term any extension thereof:

	 	(a)	 	Tongji is entitled to authorize to XTHD all the rights hereunder without any
security interest, claim and liability of any third party;
	 
	 	(b)	 	for the grant of rights hereunder to XTHD, Tongji has obtained all the required
authorities, permission and consent including but not limited to the consent of the
other party to all college cooperation agreements;
	 
	 	(c)	 	Tongji shall maintain the legality and validity of any other permission,
approval and consent necessary for establishment, operation and maintenance of the
platform in the term and any renewal term of this Agreement; and
	 
	 	(d)	 	Tongji is responsible for the application and registration of the business
herein and relevant necessary approval and recognition.
	 
	 	(e)	 	The annex lists current and complete agreements between Tongji and Beijing
College Employment Counseling Center and Hubei College Employment Counseling and
Service Center and all the universities. In case of any amendment, supplement,
revision, termination of this Agreement, Tongji is required to obtain prior written
consent of XTHD.

	4.3	 	Further Warranties

	 	(a)	 	The Parties hereby agree that each party will at the request of the other party
take any further action at its own expense and sign any further document to give effect
to the transactions proposed under this Agreement and all the agreements mentioned
hereunder and to the provisions of such agreements. Especially, on the

7

 

	 	 	 	basis of observing the foregoing provisions, the Parties agree to revise this
Agreement under necessary conditions so that it meets the requirements of applicable
laws (including but not limited to applicable Chinese laws);
	 
	 	(b)	 	Tongji agrees to invest and manufacture at least 125 electronic display screens
and lamping frame seats designated by Beijing College Employment Counseling Center and
at least 125 electronic display screens and lamping frame seats for not less than 30
universities designated by Beijing College Employment Counseling Center after the
conclusion of this Agreement, all of which shall be completed into operation
before December 31 2008.
	 
	 	(c)	 	Tongji hereby agrees to grant the operation right of advertising and activities
of all electronic display and lamping frame seats in all universities to XTHD or its
designated party, which has been obtained or will be obtained by Beijing College
Employment Counseling Center and Hubei College Employment Counseling and Service
Center.
	 
	 	(d)	 	Tongji further agrees to grant the exclusive operation right of advertising and
activities of all electronic display and lamping frame seats in all universities to
XTHD or its designated party, which come from all the agreements concluded by Tongji
and the employment counseling centers beside Beijing and Hubei Province (as practical
as possible XTHD as one party executes relevant agreement directly with related college
employment counseling and service centers; in case of failure, please refer to Article
3.1(a)) .

	5.	 	Term and Termination
	 
	5.1	 	Term

This Agreement will take effect on and from the effective date and, unless otherwise terminated as
per the provisions of Article 5.2 herein, will maintain complete effectiveness within five (5)
years after the effective date (“Term”).

	5.2	 	Termination
	 
	5.2.1	 	Under the following condition, Tongji, XTHD and/or other designated party as the relative
party may terminate this Agreement:

	 	(a)	 	If the other party constitutes any material breach of this Agreement and this
breach cannot be remedied ;
	 
	 	(b)	 	If the other party constitutes any material breach of this Agreement and such a
breach, though remediable, but the breaching party fails to remedy the breach within
thirty (30) days after receipt of the written notice from the non-breaching party; and
	 
	 	(c)	 	If the other party closes down or goes bankrupt .

8

 

	6.	 	Defaulting Liabilities and Indemnification
	 
	6.1	 	If Tongji or XTHD terminates this Agreement in prior pursuant to Article 5.2.1, the
terminating party shall compensate any loss of the other party.
	 
	6.2	 	One party (each party is separately called “the indemnifying party”) shall be responsible for
fully indemnifying the other party and its affiliates as well as the directors, staff and
employees of the other party and its affiliates (collectively called “the indemnified
parties”, but separately called “the indemnified party”) so as to hold such indemnified
parties harmless against all the costs, expenses, losses, damages, debts, requests and legal
proceedings which may be caused by the following issues or may be claimed against any of such
indemnified parties (or which may be sustained by any of such indemnified parties) and which
may be related to any of the following issues and hold such indemnified parties harmless
against any losses (unless any of such costs, expenses, losses, damages, debts, requests and
legal proceedings claimed against or sustained by any of such indemnified parties was caused
by any material negligence or intention on the part of such an indemnified party):

	 	(a)	 	The execution of all rights authorized to Tongji or XTHD herein; and
	 
	 	(b)	 	Any breach of compensating party to any article of this Agreement, or any
nature of action, inaction, nonfeasance or negligence of compensating party (or any of
its employee or agent or other personnel related to all the rights authorized hereunder
for any reason).

	7.	 	Confidentiality
	 
	7.1	 	The Parties agree that all the information, material or document obtained for the execution
and performance of this Agreement or related to this Agreement and marked as confidentiality
shall be kept confidential and may not be disclosed to any third party without the consent of
the other party.
	 
	7.2	 	The Parties agree that any party may not use any information, material or document obtained
from this Agreement for any purpose not for this Agreement or unnecessary or no in favor of
the cooperation herein, and may not provide to any third party directly or indirectly.
	 
	7.3	 	None of the provisions of the above 7.1 and 7.2 applies to any of the following disclosures
made by any party: (a) to its consultants, agents, shareholders, directors or managerial
staff; and (b) to financial institutions and banks for obtaining their consent or financing
for the transactions under this Agreement; and (c) at any mandatory request during any
judicial or administrative procedure or in compliance with any other legal requirement (under
this condition, the disclosing party shall immediately give the other party a written notice);
and (d) at the request of the other party (or any of its affiliates) or

9

 

	 	 	any government agency or regulatory body or stock exchange or
institution which has jurisdiction over the transactions
under this Agreement.
	 
	8.	 	Governing Law and Dispute Resolution
	 
	8.1	 	Governing Law
	 
	 	 	The conclusion, validity, interpretation, performance and dispute resolution of this
Agreement shall be governed and interpreted pursuant to the laws of China (including
conflict rules).
	 
	8.2	 	Dispute Resolution
	 
	 	 	Any dispute related to or resulting from this Agreement, including but not limited to
relevant existence, validity (including validity and scope of arbitration terms herein) or
termination (hereinafter collectively called as “disputes” or respectively as “dispute”), in
case that the dispute fails to be solved upon amicable negotiation in 60 days after one
party gives notice of the dispute to the other party, the dispute may be submitted upon
application of any party to China International Economic and Trade Arbitration Committee
(“Arbitration Center”) for arbitration. The Parties hereby agree that any and all dispute
shall be submitted and finally solved by Arbitration Center upon current arbitration rules
in Beijing. If any article fails to execute for any reason, the article shall be executed to
the fullest extent so as to realize the intent of the article concluded by the Parties,
however, other articles herein shall continue to maintain full validity and effect. The
place of arbitration is Beijing, China. The languages of arbitration (including language of
award and support documents) shall be Chinese and English. The arbitration award shall be
final and binding on relevant parties. During arbitration the Parties shall continue to
perform this Agreement except for arbitration items.

	9.	 	Miscellaneous
	 
	9.1	 	Entire Agreement
	 
	 	 	This Agreement constitutes all the understanding between the Parties with
respect to the subject hereof hereof, and supersedes any and all previous warranties,
understandings, contracts or other oral or written promises to the subject of this Agreement
by Tongji, XTHD and/or Chung Cheng Co., Ltd.
	 
	9.2	 	Amendments
	 
	 	 	No amendment to this Agreement may be made except by a written instrument executed by the duly authorized representatives of both
parties.
	 
	9.3	 	Severability
	 
	 	 	Should any provision of this Agreement be held illegal or
unenforceable under the laws of any jurisdiction, such provision shall
be invalid to the extent of such illegality or

10

 

	 	 	unenforceability within this jurisdiction, and to the maximum extent permitted by law, shall not affect its legality and enforceability within any other jurisdiction.
	 
	9.4	 	No waiver
	 
	 	 	Unless a written waiver is given, if one party fails to exercise any right under any provision of this
Agreement when the other party breaches this Agreement, it shall not be regarded as a waiver of
exercising the right under the corresponding or any other provision of this Agreement in future. If any
party fails or delays to exercise any of its rights under this Agreement, it shall not be regarded as a waiver of such a right..
	 
	9.5	 	Notices
	 
	 	 	Any and all notice, demand, request and other communications requested or permitted by this
Agreement shall be in written and delivered to the confirmed address by certified personal
delivery or registered mail (postage prepaid with return receipt).
	 
	9.6	 	Succession and Transfer
	 
	 	 	This Agreement shall be effective and binding on successor and
permitted transferee of each party. Except for express permission
herein, any party is not entitled to transfer any right or interest
hereunder without written consent of the other party and any transfer
without the written consent shall be invalid.
	 
	9.7	 	Language
	 
	 	 	This Agreement is made in Chinese. All the schedules and attachments
(if any) of this Agreement constitute an integral part of this
Agreement and have the same legal force as the main text of this
Agreement.
	 
	.	 	 
	 
	9.8	 	Counterparts

This Agreement has two counterparts in each language, one counterpart for each party.

[Signature page below]

11

 

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties below as of the
date first above written.

	 	 	 	 	 
	Beijing Tongji Xinke Technology Development Co., Ltd.

 	 
	By:  	 	 	 
	 	 	 	 
	Name:  	 	 	 
	 
	Title:  	 	 	 
	 
	 
	Beijing
Xintai Huade Advertising Co., Ltd

 	 
	By:  	 	 	 
	 	 	 	 
	Name:  	 	 	 
	 
	Title:  	 	 	 
	 

12

 

Annex 1

Contracts between Tongji and Beijing College Employment Counseling Center and Hubei College
Employment Counseling and Service Center

13

 

Annex 2

List of present universities executing agreements with Tongji subject to the project in this
Agreement and specific contracts

	1.	 	Universities:
	 
	 	 	[•]
	 
	2.	 	Specific Contracts

14

 

[English
Translation Only]

Schedule E

XFM Tianren Agreement

Cooperation Agreement

THIS COOPERATION AGREEMENT (“this Agreement”) is made and entered into [MM] [DD] 2008 by and
between:

	(1)	 	Beijing Tian Ren Qing An Media Technology Co., Ltd, a limited liability company, whose
address is at A197, F/6 of Beijing Jinyuan Times Shopping Center, No.1 of Yuanda Road, Haidian
District, Beijing (hereinafter referred to as “Tian Ren Qing An”), and
	 
	(2)	 	Beijing
Xintai Huade Advertising Co.,Ltd., a limited liability company, whose address is at
Room 2102, F/21, Building#1, No.6A of Jianguomen Waidajie Street, Chaoyang District, Beijing
(hereinafter referred to as “Xin Tai Hua De”).

(The above parties are individually referred to as a “Party” or collectively referred to as the
“Parties”.)

WHEREAS,

	(A)	 	Tian Ren Qing An is limited liability company registered and established under the law of the
People’s Republic of China, has obtained the business license approved and issued by the local
administration for industry and commerce, and has the professional ability and experience
required for engaging in advertisement design, making, agency and launching;
	 
	(B)	 	Tian Ren Qing An has obtained the exclusive general agent right for advertising the magazine
titled Information and Family (subtitled Loftiness, hereinafter referred to as “the Magazine”)
published by the Posts & Telecommunications Press (“the Press”);
	 
	(C)	 	Tian Ren Qing An, Xin Tai Hua De and Chung Cheng Co., Ltd have executed the Confirmation
Agreement on August      , 2008;
	 
	(D)	 	Tian Ren Qing An and Xin Tai Hua De intend to cooperate in pursuing the business
opportunities provided by the above-mentioned Magazine and related fields, and to fully
support such cooperation.

NOW, THEREFORE, the Parties, after friendly negotiation and on the basis of equality and mutual
benefit, hereby enter into this Agreement upon and subject to the following terms and conditions
as set forth below:

	1.	 	Definitions and interpretations

1

 

	1.1	 	Definitions

Unless otherwise defined or interpreted herein, the following terms in this Agreement shall have
the following meanings:

“Affiliate” refers to, with respect to either party, any company or entity controlled by or under
common control with such party.

“Control” or “controlled” (or any term related thereto) refers to any direct or indirect power to
appoint the management of an entity (or enable such appointment) to act as a trustee, executor,
agent or in any other capacity in passing any voting security, voucher contract, credit arrangement
or commission. For the purpose of this definition, if an entity owns or holds over 50% of the
voting equity interest in another entity, the former entity shall be regarded as controlling the
latter entity.

“Effective date” refers to the signing date of this Agreement.

“Intellectual
property” refers to any nation’s patents, trademarks, service logos, trade names,
design rights (whether registered or not) as well as any applications, copyrights and other
transferrable intellectual properties (whether registered or not) for any of the above, including
but not limited to the format, page, appearance and feel of any content.

“Magazine” refers to the direct-mail magazine titled Information and Family (subtitled Loftiness)
published by the Posts & Telecommunications Press under Publication No. ISSN 1671-4520 and targeted
at high-end (diamond card, gold card and silver card) customers of Beijing Mobile.

“Advertisements” refers to any forms (whether or not called advertisements) published on the
Magazine for directly or indirectly introducing, promoting or marketing related commodities,
services and brands.

“Activities” refers to any activities carried out using the Magazine. The forms include but are not
limited to leaflets, rankings, salons, lectures, forums, exhibitions, advertising and publicizing
and large-scale theme activities.

“Exclusive advertisement operating right” refers to the definition given in Paragraph 2.1.2 herein.

“Entities” refers to any natural persons, legal persons, companies, associations, partnerships,
organizations, businesses, firms, joint ventures, trusts, non-social organizations or any other
entities or organizations and shall include any government agencies.

“Contract Year”: for the purpose of this Agreement, the first Contract Year refers to the period
from the date of executing this Agreement to the anniversary date. Any subsequent Contract Year
will be determined in the same way.

	1.2	 	Interpretations

Unless otherwise provided for, any reference to an “annex” or “schedule” is to an annex or schedule
hereto. Any reference to an “article” or “clause” is to an article or clause of this Agreement.

2

 

The singular words in this Agreement include the plural ones if applicable, and vice versa.

The words with a specific gender shall include all other genders.

All headings contained herein are for reference only, and shall not be used to interpret this
Agreement.

	2.	 	Cooperation and granting of rights
	 
	2.1	 	Exclusive right for providing advertisement services for the Magazine

	2.1.1	 	It is hereby agreed by Tian Ren Qing An and Xin Tai Hua De to cooperate in developing and
operating the Magazine managed by Tian Ren Qing An in accordance with this Agreement. It is
confirmed by Tian Ren Qing An that the Posts & Telecommunications Press has already granted to
Tian Ren Qing An the exclusive advertisement operating right for Magazine and the right to use
Magazine to publish advertisement-like information and advertisements and to provide technical
support and relevant services for publishing information on the Magazine. Tian Ren Qing An has
already provided the certificate of authorization issued by the Posts & Telecommunications
Press or another party designated thereby (for details, please see Attachment 1).
	 
	2.1.2	 	It is agreed by Tian Ren Qing An that, according to this Agreement, the exclusive
advertisement operating right for the Magazine will, from the date of executing this
Agreement, be granted to Xin Tai Hua De or another party designated thereby, i.e. within the
term of this Agreement, only Xin Tai Hua De or the party designated thereby has the right to
publish in the Magazine or use the Magazine to independently organize or publish
advertisements.
	 
	2.1.3	 	Within the term of this Agreement, Tian Ren Qing An shall not act as an agent for the
advertisements of the Magazine or grant any third party the agency for operating the
advertisements of the Magazine, and Tian Ren Qing An warrants that no third party shall be
allowed to publish any advertisements of any form in the Magazine. Unless otherwise expressly
specified in this Agreement, Xin Tai Hua De is entitled to all the income generated from
operating such advertisements. Within the term of this Agreement, Tian Ren Qing An ensures
that neither it nor any third party is entitled to charge any party in any form for any
advertisements in the Magazine (except where such a charge was generated from any
advertisement which occurred and was completed by the date of executing this Agreement). If
there is any such charge, it shall belong to Xin Tai Hua De or another party designated
thereby and Tian Ren Qing An shall directly pay or designate such a third party to directly
pay to Xin Tai Hua De or another party designated thereby such charge or provide such economic
benefits.
	 
	2.1.4	 	In order for Xin Tai Hua De or another party designated thereby to operate in accordance
with this Agreement, Tian Ren Qing An shall guarantee the commercial interests of Xin Tai Hua
De and the party designated thereby and shall abide by the win-win principle in doing its best
effort to provide sufficient guarantee and cooperation in advertisement

3

 

	 	 	space, advertisement page arrangement, advertisement launching and activities, including but
not limited to:

	 	(a)	 	Guaranteeing that Xin Tai Hua De or another party designated thereby has the
right for providing suggestions for the advertisement form design, advertisement column
setup, advertisement page arrangement, etc of the Magazine;
	 
	 	(b)	 	Guaranteeing the arrangement of sufficient advertisement space, and where
policy permits, launching advertisements in the page/pages determined by Xin Tai Hua De
or another party designated thereby in accordance with the advertisement forms, effects
and times as provided by Xin Tai Hua De or another party designated thereby.
	 
	 	(c)	 	Within five working days after executing this Agreement, issuing to Xin Tai Hua
De or another party designated thereby the authorization certificate evidencing the
exclusive advertisement and activity operating right and, within the following 30
working days, indicating in the Magazine the relevant information on the exclusive
advertisement agent, including company name, address, telephone number, etc.

	2.2	 	Magazine operation
	 
	2.2.1	 	In addition to other responsibilities as specified herein, Tian Ren Qing An shall enable the
Press to guarantee that the Magazine is always in a good operating status and shall enable the
Press to improve the quality of the Magazine from time to time, including but not limited to:

	 	(a)	 	Within the first 5 working days after executing this Agreement, Tian Ren Qing
An shall have the obligation to enable the Press to issue the certificate in the form
as shown in Attachment 2 to evidence that Xin Tai Hua De has the exclusive
advertisement and activity operating right for Magazine, and shall guarantee the legal
and smooth operation of the Magazine;
	 
	 	(c)	 	Determining that the current Magazine uses A4 format and allocates 96 pages
for the main text, that the 105g coated paper shall be full-color printed, and that
covers shall use full-color printed 200g coated paper, UV;
	 
	 	(d)	 	Ensuring the print quality of the Magazine within the term of this Agreement.
If the format and/or paper will be significantly adjusted, a written notice shall be
given to Xin Tai Hua De or another party designated thereby at least one month in
advance, and negotiation shall be conducted with Xin Tai Hua De or another party
designated thereby. If such an adjustment will certainly have an impact on the
advertisement operation and/or production by Xin Tai Hua De or another party designated
thereby, the Parties shall revise the corresponding clause or clauses herein according
to the actual situation;
	 
	 	(e)	 	Guaranteeing that, within the term of this Agreement, the Magazine is a
direct-mail magazine targeted at high-end (diamond card and part of gold card)
customers of Beijing Mobile and smoothly completing the content preparation, printing,
launching, distribution and other relevant work of the Magazine; and

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	 	(f)	 	Guaranteeing that the circulation of the Magazine shall not be less than 60,000
copies per issue, and providing the carbon copy of the relevant printing invoice or
printing contract for the Magazine to prove the number of printed copies of the
Magazine.

	2.2.2	 	Provided that the Press retains the final examination right for the Magazine, that
compliance with the positioning and quality requirements of the Magazine is ensured, and that
compliance with the regulations by the General Administration of Press and Publication of the
People’s Republic of China is ensured, Xin Tai Hua De or another party designated thereby may
negotiate with Tian Ren Qing An on join the Press in improving the positioning and content of
the Magazine and may provide part of the content.
	 
	2.2.3	 	Except the pages (covers and the inside front cover) designated by Beijing Mobile, Tian Ren
Qing An shall provide no less than 10 advertisement pages for each issue, and Xin Tai Hua De
or another party designated thereby shall have the right to choose the positions of the
corresponding advertisement pages for the advertisement positions in the Magazine and provide
advertisement pictures by the agreed time.
	 
	2.2.4	 	Xin Tai Hua De is entitled to showing its name for the advertisements in the Magazine, and
Tian Ren Qing An shall guarantee that the Press will, for each and every issue of the Magazine
within the term of this Agreement, publish Xin Tai Hua De as the exclusive general
advertisement agent for the Magazine.
	 
	2.3	 	Tian Ren Qing An’s confirmation of the right granting
	 
	 	 	Tian Ren Qing An hereby agrees to the cooperation hereunder and to all the rights granted
hereunder to Xin Tai Hua De and/or another party designated thereby, and waives any rights
which the Magazine owns or may have obtained from any other party relating to the
advertisements in the Magazine, especially those rights which
conflict with or compete against or
may conflict with or compete against the right granted hereunder to Xin Tai Hua De and/or another
party designated thereby, and those which may affect the right for exercising the rights
granted hereunder to Xin Tai Hua De and/or another party designated thereby.

	3.	 	Consideration
	 
	3.1	 	Subject to the fulfillment of the following conditions, for the second Contract Year and
each of the subsequent Contract Years, Tian Ren Qing An will receive an annual incremental
increase of 5% in advertisement agency fee on the basis of RMB3,500,000.00 Yuan. The
advertisement agency fee will be paid by Xin Tai Hua De within the 1st month after
the beginning of the subsequent Contract Year (for the first Contract Year, Xin Tai Hua De
does not have to pay any fee):
	 
	 	 	The advertisement income of the Magazine for the current year is 10% or more than
that of the previous year.

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	3.2	 	If Xin Tai Hua De fails to make the payment within the above-mentioned period due to any
reason on the part of Xin Tai Hua De, for each day of delay, Xin Tai Hua De shall pay a late
fee equal to 0.03% of the outstanding part of the payment.

	4.	 	Representations and warranties
	 
	4.1	 	Representations and warranties by each party
	 
	 	 	Each party represents and warrants to the other party that:

	 	(a)	 	It is duly registered and validly existing under applicable laws of the place of
registration, it has the legal standing and power to sign and perform this Agreement and
any other agreement to which it is a party and that is related to the cooperation
deliberated in this Agreement.
	 
	 	(b)	 	Its execution, delivery and performance of the agreement and any other
agreement to which it is a party and that is related to the cooperation deliberated in
this Agreement are duly authorized. The agreement and any other agreement to which it
is a party and that is related to the cooperation deliberated in this Agreement have
been duly executed and delivered by it on the execution and delivery dates of such
agreements and are legally binding and can be enforced according to the terms therein.
	 
	 	(c)	 	Its execution, delivery and performance of this Agreement and any other
agreement to which it is a party and that is related to the cooperation deliberated in
this Agreement will not:

	 	(i)	 	Request the obtaining of any authorization, consent, filing,
registration or notice of any Chinese government agencies, or request any
authorization, consent, filing, registration or notice to be gone through at
any Chinese government agencies; or
	 
	 	(ii)	 	Give rise to the breach of any agreements, obligations or
orders to which it is a party.

	4.2	 	Representations and warranties of Tian Ren Qing An
	 
	 	 	Tian Ren Qing An further states and warrants to Xin Tai Hua De that, within the term of this
Agreement any extension thereof:

	 	(a)	 	The Magazine is a legal and official national publication and it owns the
exclusive general advertisement and activity agency for the Magazine;
	 
	 	(b)	 	It has and always has the right to Xin Tai Hua De all the rights granted by it
to Xin Tai Hua De under this Agreement, and none of such rights is subject to any
third-party security interest, claim and burden;
	 
	 	(c)	 	For the rights grant to Xin Tai Hua De under this Agreement, it has acquired
all the third-party authorizations, permits and consents required for Xin Tai Hua De

6

 

	 	 	 	to exercise their rights under this Agreement, including but not limited to the
consent from the Press;
	 
	 	(d)	 	The Press will maintain the legality and effectiveness of any other permits,
approvals and consents needed for establishing, operating and maintaining the Magazine
within the term of this Agreement and any extension thereof;
	 
	 	(e)	 	It will be responsible for handling the applications for the business proposed
under this Agreement or for other businesses proposed to be developed and operated by
Tian Ren Qing An and will do its utmost effort to acquire all the other approvals,
permits, consents and registrations required from all relevant Chinese government
agencies or administrative agencies;
	 
	 	(f)	 	After each Contract Year ends, Tian Ren Qing An can guarantee that all the
qualifications and conditions of the Magazine will not be lower than those of the
previous year and that it fully perform its obligations under this Agreement;
	 
	 	(g)	 	Tian Ren Qing An guarantees that Xin Tai Hua De can obtain full support from
the Press and Beijing Mobile; and
	 
	 	(h)	 	Guarantees that before Xin Tai Hua De pays the consideration for the second
Contract Year the Press will issue the certificate in the form as shown in Attachment 2
to evidence that Xin Tai Hua De owns the exclusive right to operate the advertisements
and activities of the Magazine.

	4.3	 	Further warranties

	 	(a)	 	It is hereby agreed by Tian Ren Qing An and Xin Tai Hua De that each party will
at the request of the other party take any further action at its own expense and sign
any further document to give effect to the transactions proposed under this Agreement
and all the agreements mentioned hereunder and to the provisions of such agreements.
Especially, on the basis of observing the foregoing provisions, the Parties agree to
revise this Agreement under necessary conditions so that it meets the requirements of
applicable laws (including but not limited to applicable Chinese laws);
	 
	 	(b)	 	When Xin Tai Hua De or another party designated thereby acts as the exclusive
advertisement agent for the Magazine, it will legally operate and not engage in any
action which may damage the brand image of the Magazine or the interests of Tian Ren
Qing An;
	 
	 	(c)	 	Tian Ren Qing An warrants that the Press will publish Xin Tai Hua De and/or
another party designated thereby as the general advertisement agent for the Magazine
for each and every issue within the term of this Agreement;
	 
	 	(d)	 	Tian Ren Qing An warrants to cooperate with Xin Tai Hua De or another party
designated thereby in formulating the agent development policy;

7

 

	 	(e)	 	Tian Ren Qing An warrants to meet the operational requirements of Xin Tai Hua
De or another party designated thereby and adjust the prices once per year of the
publications in accordance with the requirements of Xin Tai Hua De or another party
designated thereby.

	5.	 	Term and termination
	 
	5.1	 	Term

This Agreement will take effect on and from the effective date and, unless otherwise terminated as
per the provisions of Article 5.2 herein, will maintain complete effectiveness within five (5)
years after the effective date (“Term”).

	5.2	 	Termination
	 
	5.2.1	 	Under any of the following conditions, either Tian Ren Qing An or Xin Tai Hua De and / or
another party designated thereby may terminate this Agreement:

	 	(a)	 	If the other party constitutes any material breach of this Agreement and this
breach cannot be remedied;
	 
	 	(b)	 	If the other party constitutes any material breach of this Agreement and such a
breach, though remediable, but the breaching party fails to remedy the breach within
thirty (30) days after receipt of the written notice from the non-breaching party; and
	 
	 	(c)	 	If the other party closes down or goes bankrupt.

	6.	 	Defaulting liabilities and indemnification
	 
	6.1	 	If Tian Ren Qing An or Xin Tai Hua De terminates this Agreement earlier in accordance with
the provisions of 5.2.1 herein, the breaching party shall indemnify the non-breaching party
against all losses.
	 
	6.2	 	One party (each party individually as “the indemnifying party”) shall be responsible for
fully indemnifying the other party and its affiliates as well as the directors, staff and
employees of the other party and its affiliates (collectively called “the indemnified
parties”, but separately called “the indemnified party”) so as to hold such indemnified
parties harmless against all the costs, expenses, losses, damages, debts, requests and legal
proceedings which may be caused by the following issues or may be claimed against any of such
indemnified parties (or which may be sustained by any of such indemnified parties) and which
may be related to any of the following issues and hold such

8

 

	 	 	indemnified parties harmless against any losses (unless any of such costs, expenses, losses,
damages, debts, requests and legal proceedings claimed against or sustained by any of such
indemnified parties was caused by any material negligence or intention on the part of such
an indemnified party):

	 	(a)	 	Exercising any of the rights granted to Tian Ren Qing An or to Xin Tai Hua De
under this Agreement; and
	 
	 	(b)	 	Any breach by the indemnifying party of any provision of this Agreement, or any
action, inaction, negligence or fault of any nature committed by the indemnifying party
(or any of its staff, employees or agents or any other persons which may be related to
the rights granted under this Agreement for any reason whatsoever).

	7.	 	Confidentiality
	 
	7.1	 	It is agreed by the Parties that the receiving party shall keep confidential all the
information, data or documents acquired as a result of executing and performing this Agreement
or related to this Agreement and identified by disclosing party as confidential, and without
the consent by the disclosing party, the receiving party shall not disclose any of such
confidential information to any third party.
	 
	7.2	 	It is agreed by the Parties that neither party shall use any of the information, data or
documents obtained from the other party under this Agreement for any other purpose than that
specified in this Agreement or for any other unnecessary purpose or for any purpose which does
not facilitate the cooperation proposed under this Agreement, or directly or indirectly
provide it for use by any third party.
	 
	7.3	 	None of the provisions of the above 7.1 and 7.2 applies to any of the following disclosures
made by any party: (a) to its consultants, agents, shareholders, directors or managerial
staff; and (b) to financial institutions and banks for obtaining their consent or financing
for the transactions under this Agreement; and (c) at any mandatory request during any
judicial or administrative procedure or in compliance with any other legal requirement (under
this condition, the disclosing party shall immediately give the other party a written notice);
and (d) at the request of the other party (or any of its affiliates) or any government agency
or regulatory body or stock exchange or institution which has jurisdiction over the
transactions under this Agreement.

	8.	 	Governing law and settlement of disputes
	 
	8.1	 	Governing law
	 
	 	 	The formation, effectiveness, interpretation, performance of this Agreement and the
settlement of any dispute hereunder shall be governed by and construed in accordance with
the Chinese law.
	 
	8.2	 	Settlement of disputes

9

 

	 	 	Any dispute arising out of or in connection with this Agreement, including but not limited
to any issues relating to the existence, effectiveness (including the effectiveness and
scope of this arbitration clause) or termination of this Agreement (collectively called
“disputes” and separately called “dispute”), if failing to be solved by the Parties through
negotiation within sixty (60) days after one party notifies the other party in writing of
the occurrence of such a dispute, may be submitted by either party to China International
Economic and Trade Arbitration Commission (“CIETAC”) for arbitration. It is hereby agreed by
the Parties that any and all disputes shall be submitted to and arbitrated by the
arbitration center in accordance with the currently applicable arbitration rules of the
arbitration center in Beijing, China. If any provision of this Agreement cannot be enforced
for any reason whatsoever, the said provision shall be executed to the possible maximum
degree so as to achieve the intent for which the Parties formulated this provision, while
all other provisions of this Agreement shall maintain completely valid and effective. The
arbitration court shall be formed of three (3) arbitrators who will be appointed in
accordance with the arbitration rules of the arbitration center. The arbitration shall be
conducted in Beijing, China. Both Chinese and English (including the language used in the
arbitral award and the language used for supporting the arbitral award) shall be the
languages equally applicable in the arbitration. The arbitral award shall be final and
binding on the Parties. During arbitration proceedings, the Parties shall continue to
perform this Agreement except for the matters in dispute.

	9.	 	Miscellaneous
	 
	9.1	 	Entire agreement
	 
	 	 	This Agreement constitutes all the understandings between the Parties with
respect to the subject matter hereof and replaces all the warranties, understandings,
contracts or oral or written promises made by Tian Ren Qing An, Xin Tai Hua De and/or Chung
Cheng Co., Ltd. regarding the subject matter under this Agreement.
	 
	9.2	 	Amendments
	 
	 	 	No amendment to this Agreement may be made except by a written instrument executed by the duly authorized representatives of the Parties.
	 
	9.3	 	Severability
	 
	 	 	Should any provision of this Agreement be held illegal or
unenforceable under the laws of any jurisdiction, such provision shall
be invalid to the extent of such illegality or unenforceability within
this jurisdiction, and to the maximum extent permitted by law, shall
not affect its legality and enforceability within any other
jurisdiction.
	 
	9.4	 	No waiver
	 
	 	 	Unless a written waiver is given, if one party fails to exercise any right under any provision of this Agreement when the other party
breaches this Agreement, it shall not be regarded as a waiver of
exercising the right under the corresponding or any other

10

 

	 	 	provision of this Agreement in future. If any party fails or
delays to exercise any of its rights under this Agreement, it
shall not be regarded as a waiver of such a right.
	 
	9.5	 	Notices
	 
	 	 	All the notices, requests and other communications requested or permitted under this
Agreement shall be made in Chinese and English and shall be delivered to the confirmed
addresses via certified express delivery or registered mail (postage prepaid and return
requested).
	 
	9.6	 	Succession and transfer
	 
	 	 	This Agreement shall be valid for and binding on the respective
successor(s) and permitted transferee(s) of the Parties. Unless
otherwise expressly permitted in this Agreement, without prior written
consent from the other party, neither party shall have the right to
transfer any of its rights under or interests in this Agreement.
Without such prior written consent, no proposed transfer shall be
valid or effective.
	 
	9.7	 	Language
	 
	 	 	This Agreement is made in Chinese. All the schedules and attachments
(if any) of this Agreement constitute an integral part of this
Agreement and have the same legal force as the main text of this
Agreement.
	 
	9.8	 	Counterparts
	 
	 	 	This Agreement is executed in duplicate in each language, with each
party hereto retaining one copy thereof.

[Signature page below]

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties below as of the
date first above written.

	 	 	 	 	 
	Beijing Tian Ren Qing An Media
Technology Co., Ltd.

 	 
	Signature:  	 	 	 
	 	 	 	 
	Name:  	 	 	 
	 
	Title:  	 	 	 
	 
	 
	Beijing
Xintai Huade Advertising Co.,
Ltd.

.
 	 
	Signature:  	 	 	 
	 	 	 	 
	Name:  	 	 	 
	 
	Title:  	 	 	 
	 

12

 

	 	 	 	 	 

Attachment 1

Authorization Certificate Evidencing the Authorization Granted by the Press to Tian Ren Qing An

13

 

Attachment 2

Authorization Certificate Form for the Press to Authorize Xin Tai Hua De

TO:
Xintai Huade (Beijing) Advertisement Co., Ltd.

It is
hereby confirmed by us that Xintai Huade (Beijing) Advertisement Co., Ltd. owns the exclusive
advertisement agency for the magazine titled Information and Family (subtitled Loftiness) for a
period of five years.

Posts & Telecommunications Press

Date: [MM] [DD] 2008

14

 

[English
Translation Only]

Schedule F

XFM Hezhong Agreement

Cooperation Agreement

     THIS COOPERATION AGREEMENT (“this Agreement”) is entered into as of      , 2008 by and between:

	 	(1)	 	Beijing Uni-All Interaction International Media Technologies Co, Ltd, a limited
liability company with its registered office at Room 710, No. 24, Lane A Jianwai Street,
Chaoyang District, Beijing
	 
	 	(2)	 	Beijing
Xintai Huade Advertising Co., Ltd,, limited liability company with its registered
office at Room 2102, Floor 21, Building 1, No.6, Lane A Jianguomenwai Street, Chaoyang
District, Beijing

(The above parties are separately referred to as a “Party” or collectively referred to as “the
Parties”.)

WHEREAS

	 	(A)	 	Uni-All Interaction, a limited liability company duly incorporated under the laws of
the People’s Republic of China and has been issued a business license by the
Administration for Industry and Commerce, provides media technology services and develops
and operates news release platforms;
	 
	 	(B)	 	Uni-All Interaction has been operating UNI-ALL media (“Uni-All Media”) in a number of
4S car stores and signed with such stores UA Media Partnership Agreements, whereby Uni-All
Interaction will provide to such 4S stores services including building information
platforms and release information etc., and such 4S stores or its cooperating partners
grant Uni-All Interaction exclusive right to release news and advertisings on UA Media LCD
screen terminals (for the avoidance of doubt, the term “LCD screen terminals” or any
similar expressions shall include upgrade platforms, whether such upgraded platforms take
the form of LCD or not);
	 
	 	(C)	 	Uni-All Interaction, Beijing
Xintai Huade Advertising and Chung Cheng Co., Ltd have signed a
confirmation agreement on July  , 2008;
	 
	 	(D)	 	Uni-All Interaction and Beijing
Xintai Huade Advertising wish to cooperate with each other so as to
exploit business opportunities in respect of UA Media and other related areas, and the
parties fully support such cooperation.

NOW, THEREFORE, the Parties, after friendly negotiation and on the basis of equality and mutual
benefit, hereby enter into this Agreement upon and subject to the following terms and conditions
as set forth below:

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	1.	 	Definitions and Explanations

Unless otherwise defined or interpreted herein, the following terms in this Agreement shall have
the following meanings:

“Affiliate” refers to, with respect to either party, any company or entity controlled by or under
common control with such party.

“Control” or “controlled” (or any term related thereto) refers to any direct or indirect power to
appoint the management of an entity (or enable such appointment) to act as a trustee, executor,
agent or in any other capacity in passing any voting security, voucher contract, credit arrangement
or commission. For the purpose of this definition, if an entity owns or holds over 50% of the
voting equity interest in another entity, the former entity shall be regarded as controlling the
latter entity.

“Effective date” refers to the signing date of this Agreement.

“News” refers to, with the exception of journalistic news, content including but not limited
to videos with and without sound, pictures and literatures etc.

“UA Media” refers to a central-wireless-control-network-broadcasting-system-based media that
exercises remote control of LCD terminals and that can create for enterprises proprietary media
capable of release corporate news and third party news with precision and efficiency.

“Advertising” refers to any means whereby any content is released on UA Media LCD screen
terminal so as to introduce, promote or market, directly or indirectly, any commodities, services
and brands (whether such means are referred to as advertising or not ).

“Advertising” refers to activities that are conducted via UA Media LCD screen terminals, including
but not limited to flyers, contests, salons, seminars, forums, exhibitions, advertisings and large
theme campaigns.

“Right to Operate Advertisings and Activities” refers to the definition as provide in Clause 2.1.2
herein.

“Entities” refers to any natural persons, legal persons, companies, associations, partnerships,
organizations, businesses, firms, joint ventures, trusts, non-social organizations or any other
entities or organizations and shall include any government agencies.

“Contract Year”, for the purpose of this agreement, the first contract year shall commence on the
date the agreement is executed and shall expire on the day preceding anniversary of the execution
date, the succeeding contract year shall be calculated likewise.

Interpretations

Unless otherwise provided for, any reference to an “annex” or “schedule” is to an annex or schedule
hereto. Any reference to an “article” or “clause” is to an article or clause of this Agreement.
The singular words in this Agreement include the plural ones if applicable, and vice versa.

2

 

The words with a specific gender shall include all other genders.

All headings contained herein are for reference only, and shall not be used to interpret this
Agreement.

			
	2.	 	Cooperation and Granting of Rights

	2.1	 	Exclusive Right to Operate Advertisings and Activities

	 	2.1.1	 	Uni-All Interaction and Xintai Huade Advertising hereby agree to cooperate with each
other and jointly develop and operate according to provisions herein the UA Media
operated by Uni-All Interaction. Uni-All Interaction confirm the 4S car stores listed in
Appendix I have granted Uni-All Interaction the exclusive right to operate UA Media, and
the exclusive right to release news and advertisings on UA Media, and Uni-All Interaction
shall be responsible for providing technical support and related services for UA Media
news release functions. Uni-All Interaction has furnished the contracts it has signed
with relevant 4S stores and the certificate of such 4S stores authorization (see Appendix
II).
	 
	 	2.1.2	 	Uni-All Interaction confirm, as from the day this agreement is signed, it will
grant to Xintai Huade Advertising all the exclusive operation rights granted to it under the
contracts listed in the Appendix I hereto and the right to release news and advertisings
on UA Media (including the exclusive advertising agency rights to operate at least 170 UA
Media LCD screen terminals, i.e. during the term of the agreement, Xintai Huade Advertising will
release news and advertisings and organize activities on UA Media on its own. )
	 
	 	2.1.3	 	Uni-All Interaction hereby further confirm, during the term of the agreement, when
Uni-All Interaction is to sign any new Partnership Agreements (“Partnership Agreements”)
with any 4S car stores in Beijing or other provinces, municipalities under direct
jurisdiction of the central government or autonomous regions and set up or install any
new UA Media LCD screen terminals, Uni-All Interaction shall give notice to Xintai Huade Advertising and shall obtain Xintai Huade Advertising’s written consent in advance prior to the
execution of such Partnership Agreements. Upon the execution of such Partnership
Agreements, Uni-All Interaction grants Xintai Huade Advertising exclusive and general
advertising agency right as regards such UA Media LCD screen terminals under such
Partnership Agreements.
	 
	 	2.1.4	 	During the term of the agreement, Uni-All Interaction shall not exercise or grant
any third party to exercise agency right as regards news and advertisings on UA Media,
and Uni-All Interaction guarantees that no third party may release any news or
advertisings on UA Media. Unless expressly provided in this
agreement, Xintai Huade Advertising
is entitled to receive all the revenues of the advertisings and operations of UA Media.
During the term of the agreement, Uni-All Interaction guarantees that it is not entitled
to collect any types of payment from any party in respect of UA Media advertising, nor
does any third party has any right to collect any types of payment from any party in
respect of UA Media advertising (except when such payment is credited to UA Media
advertising that have been made and completed prior to the execution date of the
agreement ), should any such payment exists, such income shall belong
to Xintai Huade Advertising and Uni-All Interaction shall pay by itself or designate the such third party
to pay to Xintai Huade Advertising such costs or provide to Xintai Huade Advertising such economic
interests.

3

 

	 	2.1.5	 	To enable Xintai Huade Advertising to conduct business operations pursuant to provisions
herein, Uni-All Interaction shall safeguard Xintai Huade Advertising’s business interests, and
shall, on the basis of mutual benefit, make its best efforts to accommodate and
coordinate with Xintai Huade Advertising in terms of advertising spaces, advertising layout
arrangement, advertising release and activities, including but not
limited to:

	 	(a)	 	Ensure that Xintai Huade Advertising has a decision-making right over UA
Media advertisings’ design, advertising column arrangement, advertising layout
etc.;
	 
	 	(b)	 	Reserve adequate advertising space for Xintai Huade Advertising, and release
Xintai Huade Advertising’s advertisings in compliance with Xintai Huade Advertising’s
requirements as regards design, effect, timing and location.
	 
	 	(c)	 	Uni-All Interaction furnish to Xintai Huade Advertising materials certifying
its UA Media general advertising agency within 3 working days after the execution
of the agreement, and specify in UA Media the general advertising agent’s name,
address, telephone etc.

	 	2.1.6	 	Uni-All Interaction hereby guarantees that any 4S car stores and any third parties
such stores cooperate with shall authorize Xintai Huade Advertising to release all the news and
advertising that are intended to be released via Uni-All Interaction release platform,
and any third party other than Uni-All Interaction and 4S car stores shall sign with
Xintai Huade Advertising a News Release Authorization Agreement when such third party wishes to
conduct business activities via 4S car stores’ internal release platforms, and shall pay
to Xintai Huade Advertising news release service fees, the rates of which are determined by
Xintai Huade Advertising.

	2.2	 	UA Media Operation

	 	2.2.1	 	Besides the other responsibilities provided herein, Uni-All Interaction will
ensure that UA Media will be maintained in good working conditions at all times, and
Uni-All Interaction will upgrade UA Media’s performance from time to time, including but
not limited to:

	 	(a)	 	Ensure legitimate and smooth operation of UA Media; and
	 
	 	(b)	 	Assume responsibility and ensure all the news (including but not
limited to its content) that are to be released via UA Media is in compliance with
all applicable laws.

	 	2.2.2	 	Xintai Huade Advertising may negotiate with Uni-All Interaction as regards UA Media’s
positioning and upgrading of the contents thereon, Xintai Huade Advertising is entitled to
provide advertising contents and make decisions on UA Media’s advertising design,
advertising column arrangement and advertising layout etc., provided that Xintai Huade Advertising meets UA Media’s position and quality requirements and complies with PRC laws
and regulations.

	2.3	 	Uni-All Interaction’s confirmation of granted rights

4

 

	 	 	Uni-All Interaction hereby expresses its consent to the cooperation under the agreement and
the rights granted to Xintai Huade Advertising hereunder, and waives any rights it possesses as
regards UA Media, or any other rights it might have obtained from other parties in respect of
UA Media, in particular rights that clash with, compete with or that might clash with, compete
with the rights granted to Xintai Huade Advertising under this agreement, and such rights that might
affect Xintai Huade Advertising’s exercising of the rights granted to it hereunder.

			
	3.	 	Consideration

	3.1	 	In the second contract year, Uni-All Interaction will receive an annual advertising agency
fee equivalent to RMB 3,960,000; in the succeeding contract years, annual advertising agency
fee receivable by Uni-All Interaction will increase on a 10% year-on-year basis, and Xintai Huade
Advertising shall pay such annual advertising fees to Uni-All Interaction in the first month
of the ongoing contract year (for the avoidance of doubt, In the second contract year, Xintai Huade
Advertising shall pay an annual advertising agency fee equivalent to RMB 3,960,000; in the
succeeding contract years, annual advertising agency fee payable by Xintai Huade Advertising shall
increase on a 10% year-on-year basis, and the second contract year, no payment is required
from Xintai Huade Advertising) provided that the following requirement is met:
	 	 	 	Xintai Huade Advertising UA Media advertisings and activities Revenues based on provisions
hereunder are 10% or even higher than revenues of the preceding year.
	 
	3.2	 	During the term of the agreement, when Uni-All Interaction is to sign any new Partnership
Agreements (“Partnership Agreements”) with any 4S car stores in Beijing or other provinces,
municipalities under direct jurisdiction of the central government or autonomous regions and
set up or install any new UA Media LCD screen terminals, Uni-All Interaction shall obtain
Xintai Huade Advertising’s written consent in advance. Xintai Huade Advertising is responsible for the
installation expense of LCD screens, which cost RMB 20,000 each set, each year Xintai Huade
Advertising shall pay to Uni-All Interaction [15%] of the net income generated by the newly
installed UA Media LCD screen terminals in installation. This sum is payable by the second
month of the succeeding year. To allow Uni-All Interaction and Xintai Huade Advertising to determine
the amount of net advertising income, Xintai Huade Advertising shall disclose to Uni-All Interaction
the operation of newly installed UA Media LCD screen terminals and Uni-All Interaction is
entitled to review and complete reviewing such operation information within 15 days after the
end of each contract year, Xintai Huade Advertising shall coordinate.
	 
	3.3	 	When Xintai Huade Advertising fails to make payments by the above deadline as a consequence of its
breach of agreement, Xintai Huade Advertising shall pay a penalty interest equivalent to 0.03% for
the delinquent sum for each day in delinquency.
	 
	3.4	 	Uni-All Interaction is obliged to ensure UA Media central wireless control network
broadcasting system can control all the existing and newly installed LCD terminals.
	 
	3.5	 	Uni-All Interaction is obliged to ensure Xintai Huade Advertising can realize control over the
content release in any LCD terminal and can make real-time adjustments and amendments to its
contents.
	 
	3.6	 	Xintai Huade Advertising shall abide by law in its operation of UA Media advertisings after
obtaining exclusive UA Media advertising agency rights, shall not conduct any behavior that
hurt UA Media’s brand image and Uni-All Interaction’s rights and interests.

			
	4.	 	Representations and Warranties

5

 

	4.1	 	Representations and warranties by each party
	 
	 	 	Each party represents and warrants to the other party that:

	 	(a)	 	It is duly registered and validly existing under applicable laws of the place of
registration, it has the legal standing and power to sign and perform this agreement and
any other agreement to which it is a party and that is related to the cooperation
deliberated in this agreement.
	 
	 	(b)	 	Its execution, delivery and performance of the agreement and any other agreement to
which it is a party and that is related to the cooperation deliberated in this agreement
are duly authorized. The agreement and any other agreement to which it is a party and
that is related to the cooperation deliberated in this agreement have been duly executed
and delivered by it on the execution and delivery dates of such agreements and are
legally binding and can be enforced according to the terms therein.
	 
	 	(c)	 	Its execution, delivery and performance of this agreement and any other agreement
to which it is a party and that is related to the cooperation deliberated in this
agreement will not:

	 	(i)	 	Request the obtaining of any authorization, consent, filing,
registration or notice of any Chinese government agencies, or request any
authorization, consent, filing, registration or notice to be gone through at any
Chinese government agencies; or
	 
	 	(ii)	 	Give rise to the breach of any agreements, obligations or orders to
which it is a party.

	4.2	 	Uni-All Interaction’s representations and warranties
	 
	 	 	Uni-All Interaction further represents and warrants that Xintai Huade Advertising that, during the
term provided in Clause 5 or the renewal term thereof:

	 	(a)	 	Ensure the legitimate operation of UA Media and ensure that it possesses the
exclusive general advertising agency rights of UA Media;
	 
	 	(b)	 	It is entitled and always entitled to grant to Xintai Huade Advertising all rights that
are to be granted to Xintai Huade Advertising hereunder and such rights are free from any third
party securities interests, claims or burdens;
	 
	 	(c)	 	In respect of the rights granted to Xintai Huade Advertising hereunder, its has obtained
from all third parties all the required authorization, permit and license , including but
not limited to the consent or authorization of all 4S car stores;
	 
	 	(d)	 	Ensure the validity and effectiveness of any other licenses, approvals and consents
that are required for establishing, operating and maintaining UA media within the term of
the agreement and any renewal term thereof;
	 
	 	(e)	 	Ensure that it will be responsible for the application of the businesses
deliberated herein or businesses that are to be developed and operated by Uni-All
Interaction, and make its best efforts to obtain all the other approvals, licenses,
permits and registrations required by Chinese government agencies or administration
agencies, including but not limited to outdoor advertising registration certificate etc.;

6

 

	 	(f)	 	Uni-All Interaction will ensure Xintai Huade Advertising’s right to put forward proposals
as regards UA media advertisings design, advertising column arrangement, advertising
layout etc.;
	 
	 	(g)	 	Uni-All Interaction will reserve adequate advertising space for Xintai Huade Advertising,
and release advertisings for Xintai Huade Advertising according to Xintai Huade Advertising’s
requirements as regards advertisings design, advertising column arrangement, advertising
layout etc.

	4.3	 	Further Warranties

	 	(a)	 	It is hereby agreed by Uni-all Interaction and Xintai Huade Advertising that each party
will at the request of the other party take any further action at its own expense and
sign any further document to give effect to the transactions proposed under this
Agreement and all the agreements mentioned hereunder and to the provisions of such
agreements. Especially, on the basis of observing the foregoing provisions, the Parties
agree to revise this Agreement under necessary conditions so that it meets the
requirements of applicable laws (including but not limited to applicable Chinese laws);
	 
	 	(b)	 	Xintai Huade Advertising guarantees that it will comply with laws in its operation after
obtaining UA Media’s exclusive advertising agency right, and will refrain from any hurt UA
Media’s brand image and Uni-All Interaction’s rights and interests.
	 
	 	(c)	 	Uni-All Interaction guarantees that it will ensure UA Media central wireless control
network broadcasting system can control all the existing and newly installed LCD
terminals.
	 
	 	(d)	 	Uni-All Interaction guarantees that Xintai Huade Advertising can realize control over the
content release in any LCD terminal and can make real-time adjustments and amendments to
its contents.
	 
	 	(e)	 	Xintai Huade Advertising agrees that each 4S car stores will broadcast 4S corporate videos
on UA Media LCD terminal during the stipulated time periods provided that Uni-All
Interaction shall guarantee that Xintai Huade Advertising shall broadcast news and advertising on
UA Media LCD terminals for no less than 42 hours each week and shall release advertisings
according to Xintai Huade Advertising’s requirements as regards advertisings design, advertising
column arrangement, advertising layout etc.

			
	5.	 	Term and Termination

	5.1	 	Term

This Agreement will take effect on and from the effective date and, unless otherwise terminated as
per the provisions of Article 5.2 herein, will maintain complete effectiveness within five (5)
years after the effective date (“Term”).

	5.2	 	Termination

7

 

	 	5.2.1	 	Under the following circumstances, Uni-All Interaction may unilaterally or Xintai Huade
Advertising may as the other party terminate the agreement:

	 	(a)	 	If the other party constitutes any material breach of this Agreement
and this breach cannot be remedied ;
	 
	 	(b)	 	If the other party constitutes any material breach of this Agreement
and such a breach, though remediable, but the breaching party fails to remedy the
breach within thirty (30) days after receipt of the written notice from the
non-breaching party; and
	 
	 	(c)	 	If the other party closes down or goes bankrupt

			
	6.	 	Defaulting Liabilities and Indemnification

	6.1	 	When Uni-All Interaction or Xintai Huade Advertising terminates this agreement according to
provision of Clause 5.2.1, the party at fault shall indemnify the party without fault for its
losses.
	 
	6.2	 	One party (each party is separately called “the indemnifying party”) shall be responsible for
fully indemnifying the other party and its affiliates as well as the directors, staff and
employees of the other party and its affiliates (collectively called “the indemnified
parties”, but separately called “the indemnified party”) so as to hold such indemnified
parties harmless against all the costs, expenses, losses, damages, debts, requests and legal
proceedings which may be caused by the following issues or may be claimed against any of such
indemnified parties (or which may be sustained by any of such indemnified parties) and which
may be related to any of the following issues and hold such indemnified parties harmless
against any losses (unless any of such costs, expenses, losses, damages, debts, requests and
legal proceedings claimed against or sustained by any of such indemnified parties was caused
by any material negligence or intention on the part of such an indemnified party):

	 	(a)	 	Exercising of any rights granted to Uni-All Interaction or to Xintai Huade
Advertising; and
	 
	 	(b)	 	Indemnifying party’s any breach of any terms herein, or indemnifying party (or any
officer, employee, agent or any other persons that are granted the rights hereunder)’s
any action, omission or negligence.

			
	7.	 	Confidentiality

	7.1	 	The parties agree that the receiving party shall keep confidential and shall not disclose to
any third party without the consent of the other party any information or documents marked as
confidential obtained during the signing and performance of this Agreement, or in connection
with this Agreement.
	 
	7.2	 	The parties agree that either party shall neither use any information or documents obtained
from the other party according to this Agreement for any purpose other than as permitted
under, or as necessary for compliance with this Agreement, nor provide the same, directly or
indirectly, to any third party.

8

 

	7.3	 	None of the provisions of the above 7.1 and 7.2 applies to any of the following disclosures made
by any party: (a) to its consultants, agents, shareholders, directors or managerial staff; and
(b) to financial institutions and banks for obtaining their consent or financing for the
transactions under this Agreement; and (c) at any mandatory request during any judicial or
administrative procedure or in compliance with any other legal requirement (under this
condition, the disclosing party shall immediately give the other party a written notice); and
(d) at the request of the other party (or any of its affiliates) or any government agency or
regulatory body or stock exchange or institution which has jurisdiction over the transactions
under this Agreement.

			
	8.	 	Governing Law and Dispute Resolution

	8.1	 	Governing Law 
	 
	 	 	The execution, validity, interpretation, performance and settlement of disputes of this
Agreement shall be governed and construed by and in accordance with the laws of the People’s
Republic of China.
	 
	8.2	 	Dispute Resolution
	 
	 	 	All disputes arising from or in connection with this agreement including, but not limited to,
the existence and validity of this Agreement, which the parties do not resolve in good faith
within sixty (60) days after either party notifies the other party of its desire to arbitrate
such dispute or controversy, shall be submitted to China International Economic and Trade
Arbitration Commission (“CIETAC”) for arbitration in accordance with its then effective
arbitration rules in Beijing. In the event that any portion of the terms of this Agreement is
held to be unenforceable, the unenforceable portion shall be executed as far as possible to
reflect the original intention, and the remainder of the provisions shall remain in full force
and effect. The arbitration panel shall consist of three (3) arbitrators nominated according
to the arbitration rules of the Arbitration Center. The place of arbitration shall be Beijing
and the languages to be used in the arbitral proceedings, including the languages used in the
award of the arbitration and those supporting it, shall be both Chinese and English. The award
of the arbitration shall be final and binding upon the Parties. Except for matters under
arbitration, the remaining part of the Agreement shall remain in effect and be enforced by the
parties during the time of arbitration.

			
	9.	 	Miscellaneous

	9.1	 	Entire Agreement
	 
	 	 	This Agreement shall constitute the entire agreement between the parties hereto and
shall supercede any and all previous oral and written notices, memoranda and contracts with
respect to the subject matter hereof between Uni-All Interaction, Xintai Huade and/or Chung
Cheng Co., Ltd.

9

 

	9.2	 	Amendments
	 
	 	 	No amendment to this Agreement may be made except by a written instrument executed by the
duly authorized representatives of the Parties.
	 
	9.3	 	Severability
	 
	 	 	Should any provision of this Agreement be held illegal or unenforceable under the laws of any
jurisdiction, such provision shall be invalid to the extent of such illegality or
unenforceability within this jurisdiction, and to the maximum extent permitted by law, shall
not affect its legality and enforceability within any other jurisdiction.
	 
	9.4	 	No Waiver
	 
	 	 	Unless a written waiver is given, if one party fails to exercise any right under any
provision of this Agreement when the other party breaches this Agreement, it shall not be
regarded as a waiver of exercising the right under the corresponding or any other provision of
this Agreement in future. If any party fails or delays to exercise any of its rights under
this Agreement, it shall not be regarded as a waiver of such a right.
	 
	9.5	 	Notices
	 
	 	 	All notices, requests and demands hereunder shall be given in writing, written in Chinese and
English, and sent to the confirmed address by certified courier or registered mail, postage
prepaid, return receipt requested.
	 
	9.6	 	Succession and Transfer
	 
	 	 	This Agreement shall inure to and bind the legal representatives, successors and assigns of
the respective parties hereto. Except as expressly provided herein, neither party may transfer
any of its rights or interests under this Agreement without the previous written consent of
the other party. Any transfer without such written consent shall be deemed as invalid.
	 
	9.7	 	Language
	 
	 	 	This Agreement is made in Chinese. All the schedules and attachments (if any) to this
Agreement are made an integral part of this Agreement and have the same legal force as the
main text of this Agreement.

10

 

	9.8	 	Counterparts

This Agreement has two counterparts in each language, one counterpart for each party.

[Signature page below]

11

 

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties below as of the
date first above written..

Beijing Uni-All Interactive International Media Technology Co., Ltd.

 

 

Legal representative or authorized representative:                     

 

 

Date of execution:

 

 

Beijing Xintai Huade Advertising Co., Ltd.

 

 

Legal representative or authorized representative:                     

 

 

Date of execution

12

 

Annex 1 4S Shop Cooperation Agreement

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SN	 	Party A	 	Party B	 	Cooperation mode	 	Service	 	Term	 	Agreement number
	1.

	 	Beijing
Huashengyuan
Automotive Sales &
Service Co., Ltd.
Tongzhou Branch
(Dongfeng-Nissan) f
	 	Uni-All Interaction
	 	1. The service
provided by Party B
will be fulfilled
in strict
accordance with the
provision of this
Agreement and the
annexes thereto.
Party A agrees that
it will become
Party B’s UA media
partner after the
execution of this
Agreement according
to the requirements
in this Agreement
and the annexes
thereto.

2. Party B shall
provide and install
the 32 inch LCD
screen. Party B
shall provide and
install the set-top
box (RMB 10,000
yuan/set, free of
set-top box cost
during the term of
this Agreement. The
installation of the
set-top box
includes built-in
installation and
external
installation. The
built-in
installation has a
LCD screen of not
less than 17 inch.
The specific amount
depends on the site
conditions and the
number of screens
installed by Party
B. the hardware
equipment is owned
by Party B.

3. Party B is
responsible for the
business invitation
and daily
management of
advertising
business. Party A
shall appoint
special personnel
to assist Party B
in advertising
business. Party B
shall transfer the
third party’s
income derived from
the video
information
released on the UA
media platform
installed on the
business premises
of Party A, with
applicable taxes
deducted, into
Party A’s account
within 20
	 	1. Party B
undertakes that
Party A’s
information will
cover all UA media
terminal LCD
screens within the
scope of Party A’s
business premises.

2. The UA media
video information
terminal LCD
screens installed
on Party A’s
business premises
are a corporate
information release
platform. Party A
is entitled to
broadcast video
information in
connection with and
limited to Party A
within specified
time.

3. The UA media
video information
terminal LCD
screens installed
on Party A’s
business premises
can provide
information release
to a third party
enterprise.
According to
relevant provisions
in this Agreement,
Party A enjoys the
income derived from
the release of the
third party
enterprise’s
information.
	 	five years
	 	UA(BJ) -300408(1)

13

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SN	 	Party A	 	Party B	 	Cooperation mode	 	Service	 	Term	 	Agreement number
	 	 	 	 	 	 	working
days after the last
calendar day of
each quarter.

4. Party A regards
Party B as the
exclusive operator
of the UA media
information release
platform. Within
the term of this
Agreement, Party A
and the third party
in cooperation with
it will trust Party
B with information
release and
advertising using
Party A’s release
platform, and any
third party beyond
this Agreement who
uses Party A’s
corporate release
platform to conduct
business activities
shall sign an
Information Release
Entrusting
Agreement with
Party B and pay
Party B the service
fee for information
release, the
criteria of which
shall be prepared
by Party B.
	 	 	 	 	 	 
	2.

	 	Beijing Shenhua
Tongda Automotive
Sales & Service
Co., Ltd. (Toyota)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -080508(1)
	3.

	 	Beijing Aiyihang
Automotive Service
Co., Ltd. (Aiyihang
)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -240308(4)
	4.

	 	Beijing Tengyuan
Xingye Automotive
Service Co., Ltd.
(Chery)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -060308(1)

14

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SN	 	Party A	 	Party B	 	Cooperation mode	 	Service	 	Term	 	Agreement number
	5.

	 	Beijing Tengyuan
Xingye Automotive
Service Co., Ltd.
(Suzuki)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -250108(4)
	6.

	 	Beijing Beilong
Lianhe Automobile
Trading Co., Ltd.
(Shanghai
Volkswagen)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -291207(4)
	7.

	 	Beijing Jinguan
Xingye Toyota
Automotive Sales &
Service Co., Ltd.
(FAW-Toyota)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -240807(1)
	8.

	 	Beijing Binggong
Beifang Automobile
Trading Co., Ltd.
(Tianjin FAW)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -120308
	9.

	 	Beijing Guangyifa
Automobile Trading
Co., Ltd. (FAW
Jilin)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -040308(2)

15

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SN	 	Party A	 	Party B	 	Cooperation mode	 	Service	 	Term	 	Agreement number
	10.

	 	Beijing Guangyifa
Automobile Trading
Co., Ltd.
(Changhe-Suzuki)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -040308(1)
	11.

	 	Beijing Huitong Sihui
Toyota Automotive
Sales & Service Co.,
Ltd. (Toyota)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -080318(1)
	12.

	 	Beijing Tengyuan
Xingye Automotive
Service Co., Ltd.
(Chery)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -250108(3)
	13.

	 	Beijing Xinpeng Shiji
Automotive Sales &
Service Co., Ltd.
(Changfeng-Mitsubishi)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -120508(1)
	14.

	 	Beijing Yadi Weida
Automotive Sales Co.,
Ltd. (BYD)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -020408(6)
	15.

	 	Beijing Tongtongshun
Automotive Sales &
Service Co., Ltd.
(Tianjin FAW)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -070108(1)
	16.

	 	Beijing Donghang Shiji
Automotive Sales &
Service Co., Ltd. (Dongfeng-Honda)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -281207(11)

16

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SN	 	Party A	 	Party B	 	Cooperation mode	 	Service	 	Term	 	Agreement number
	17.

	 	Beijing Xinxing Kuaima
Automotive Service
Co., Ltd. (Chang’an
Automobile)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -280108(3)
	18.

	 	First Branch Store of
Beijing Boshilian
Automotive Sales
Center (Great Wall )
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -151107(4)
	19.

	 	Beijing Xinxiwu
Automotive Sales Co.,
Ltd. (Maple, Lifan)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -210108(2)
	20.

	 	Beijing Tengyuan
Xingye Automotive
Service Co., Ltd.
(Geely)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -250108(2)
	21.

	 	Beijing Jiaijin Furui
Automotive Sales &
Service Co., Ltd.
(Toyota)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -291207(2)
	22.

	 	Beijing Jingchang

Xinxing Automotive

Sales & Service

Center(Tianjin FAW)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -210208(1)

17

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SN	 	Party A	 	Party B	 	Cooperation mode	 	Service	 	Term	 	Agreement number
	23.

	 	Beijing Zhongpuxin
Automotive Sales
Co., Ltd. (Tianjin
FAW)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -220208(1)
	24.

	 	Beijing Xinminheng
Automotive Sales
Co., Ltd. (BYD)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -130308(6)
	25.

	 	Beijing Wufangqiao
Toyota Automotive
Sales & Service
Co., Ltd.
(FAW-Toyota)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -020408(7)
	26.

	 	Beijing Yuantonqiao
Toyota Automotive
Sales & Service
Co., Ltd.
(FAW-Toyota)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -170308(1)
	27.

	 	Beijing Bocheng
Hongda Automotive
Service Co., Ltd.
(Dongfeng-Honda)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -120508(2)
	28.

	 	Beijing Tengyuan
Xingye Automotive
Service Co., Ltd.
(FAW-Besturn)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -250108(1)

18

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SN	 	Party A	 	Party B	 	Cooperation mode	 	Service	 	Term	 	Agreement number
	29.

	 	Beijing Xinpeng Shiji
Automotive Sales &
Service Co., Ltd.
(Changfeng-Mitsubishi)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -120508(1)
	30.

	 	Beijing Chuangcheng
Yongxin Automotive
Sales & Service Co.,
Ltd. (Xiali)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -300408(2)
	31.

	 	Beijing Anruidi
Trading Co., Ltd.
(Hyundai)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -070508(2)
	32.

	 	Beijing Xinxi
Automotive Sales Co.,
Ltd. (BYD)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -210108(1)
	33.

	 	Beijing Tengyuan
Xingye Automotive
Service Co., Ltd.
(Suzuki)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -250108(4)
	34.

	 	Beijing Huida Shiji
Trading Co., Ltd.
(Suzuki)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -080108(1)
	35.

	 	Beijing Anruidi
Trading Co., Ltd.
(Hyundai)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -070508(1)

19

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SN	 	Party A	 	Party B	 	Cooperation mode	 	Service	 	Term	 	Agreement number
	36.

	 	Beijing Senhua
Tongda Automotive
Sales & Service
Co., Ltd. (Toyota)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -080508(1)
	37.

	 	Beijing Lingmai
Automotive Sales
Co., Ltd.
(Chang’an)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -281207(5)
	38.

	 	Beijing Tengyuan
Xingye Automotive
Service Co., Ltd.
(Suzuki)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -250108(4)
	39.

	 	Beijing Tengyuan
Xingye Automotive
Service Co., Ltd.
(Chery)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -250108(3)
	40.

	 	Beijing Dongfang

Yatu Trading Center

(Youngman Lotus)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -240108(1)
	41.

	 	Beijing Xinguangbao
Automotive Service
Co., Ltd.
(Mitsubishi/Liebao)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -080110(4)
	42.

	 	Beijing Beifang
Huapeng Material
Sales Co., Ltd.
(BYD)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -011508(1)
	43.

	 	Beijing Third Automotive Repair
Company (Guangzhou Honda/Toyota

/Jinbei)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -280108(2)
	44.

	 	Beijing Runji
Hongqi Automotive
Sales & Service
Co., Ltd. (Hongqi)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -180108(1)
	45.

	 	Beijing Beilong
Lianhe Automobile
Trading Co., Ltd.
(Shanghai
Volkswagen)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -0291207(4)
	46.

	 	Beijing Beifang
Huapeng Material
Sales Co., Ltd.
(BYD)
	 	same as above
	 	same as above
	 	same as above
	 	same as above
	 	UA(BJ) -011508(1)

20

 

Annex 2

Authorization Certificate

21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]