Document:

exv10w6w1

Exhibit 10.6.1

[Translation of Chinese original]

EQUITY TRANSFER AGREEEMENT

IN CONNECTION WITH

BEIJING ALLIANCE ONLINE ADVERTISING COMPANY LTD.

By and Among

REDGATE MEDIA AD CO., LTD.

QIAN YANG

And

QINGANG FENG

 

 

Table of Contents

	 	 	 	 	 	 	 
	Article 1.
	 	Definitions	 	 	1	 
	Article 2.
	 	Transfer of equity interest	 	 	3	 
	Article 3.
	 	Representations and Warranties	 	 	4	 
	Article 4.
	 	Closing	 	 	5	 
	Article 5.
	 	Further covenants	 	 	6	 
	Article 6.
	 	Rights of the Parties	 	 	8	 
	Article 7.
	 	Confidentiality	 	 	8	 
	Article 8.
	 	Notices	 	 	9	 
	article 9.
	 	Liability for Breach of Contract	 	 	10	 
	Article 10.
	 	Expenses and Taxes	 	 	10	 
	Article 11.
	 	Dispute Resolution	 	 	11	 
	Article 12.
	 	Governing Law	 	 	11	 
	Article 13.
	 	Language	 	 	11	 
	Article 14.
	 	Entire Contract	 	 	11	 
	Article 15.
	 	Effectiveness	 	 	11	 
	Appendix 1.
	 	Particulars of the Company and Its Subsidiaries	 	 	12	 
	Appendix 2.
	 	Conditions Precedent to Closing	 	 	13	 
	Appendix 2.
	 	Annex — Articles of Association	 	 	15	 
	Appendix 3.
	 	Representations and Warranties	 	 	16	 
	Appendix 4.
	 	Non-Compete Agreement	 	 	24	 
	Appendix 5.
	 	Non-Disclosure Agreement	 	 	25	 
	Appendix 6.
	 	Disclosure Schedule	 	 	26	 
	Appendix 7.
	 	Financial STATEMENTS	 	 	27	 

 

 

THIS EQUITY TRANSFER AGREEMENT (this “Agreement”) is entered into on this 2nd day
of February 2008 by and among:

	(1)	 	REDGATE MEDIA AD CO., LTD., a limited liability company duly established and validly existing
under the laws of the People’s Republic of China, with its domicile at 8th Floor,
Tower B, CITIC Building, 19 Jianguomenwai Avenue, Chaoyang District, Beijing (“Party A”); and
	 
	(2)	 	QIAN YANG, a natural person and citizen of the People’s Republic of China whose ID card
number is 110105720423112 and whose residential address is Flat 103, Entrance 2, Building 20,
Regal Court, West Dawang Road, Beijing;
	 
	 	 	QINGANG FENG, a natural person and citizen of the People’s Republic of China whose ID card
number is 110106570921421 and whose residential address is Flat 3703, Block A,
Fenghuangcheng, Beijing; (Qian Yang and Qingang Feng are hereinafter collectively referred
to as “Party B”).

	WHEREAS:

	(A)	 	Party B owns 100 percent of the Equity Interest in BEIJING ALLIANCE ONLINE ADVERTISING
COMPANY LTD. (the “Company”) (the particulars of the Company as of the date hereof are set
forth in Part A of Appendix 1 hereto), of which Qian Yang owns 60 percent of the Equity
Interest and Qingang Feng owns 40 percent of the Equity Interest.
	 
	(B)	 	The Parties hereby agree that Party B shall transfer 100 percent of the Equity Interest of
the Company to Party A (the “Proposed Equity Transfer”) on the terms and conditions hereof,
pursuant to which Qian Yang shall transfer 60 percent of the Equity Interest to Party A
without consideration and Qingang Feng will transfer 40 percent of the Equity Interest to
Party A without consideration.

NOW, THEREFORE, following the negotiations between the Parties, the Parties agree as follows:

ARTICLE 1. DEFINITIONS

	1.1	 	Unless otherwise expressly indicated or required by the context, the following terms shall
have the meanings assigned to them as follows:
	 
	 	 	“Equity Interest” means 100 percent of the capital contribution to the Company owned by
Party B and all title, rights and interests therein (including the rights and interests in
any retained earings of the Company), namely the equity interest that is the subject of the
Proposed Equity Transfer.
	 
	 	 	“Closing” means the transfer of the Equity Interest to Party A by Party B and the carrying
out of all the necessary procedures to amend the shareholder register to effect the transfer
of the Equity Interest.
	 
	 	 	“Closing Date” means the date on which all of the Conditions for the transfer of the Equity
Interest set forth in Appendix 2 hereto have been fulfilled and the amendment

 

 

	 	 	to the shareholder register has been completed, or such other date as agreed upon by the
Parties.
	 
	 	 	“Security Interests” means any mortgages, claims, equitable interests, liens, options,
pledges, security interests, preemptive rights, acquisition rights, seizure rights,
ownership retention, setoff rights, counterclaims, trust arrangements and any other
restrictions (including restrictions on the right to use, vote, transfer, receive proceeds
or other ownership rights);
	 
	 	 	“Due Diligence” means the comprehensive due diligence on the Company conducted by Party A
and a party or parties designated by Party A.
	 
	 	 	“Confidential Information” means all oral or written information on or relating to the
Parties’ business operations, business strategies, business plans, investment plans, sales,
clients, marketing, technologies, research and development, finances or otherwise, including
but not limited to all reports and records containing such information and all copies
(including electronic copies), reproductions, reprints and translations thereof. For
purposes of this Agreement, the term “Confidential Information” shall also include this
Agreement and the Closing hereunder. Neither Party shall provide relevant information to
any third party other than the companies engaged by the Parties.
	 
	 	 	“Conditions” means the conditions precedent for the Closing set forth in Appendix 2.
	 
	 	 	“Working Day” or “Business Day” means a day other than a Saturday, Sunday or a public
holiday in the PRC .
	 
	 	 	“Renminbi” or “RMB” means the legal currency of the PRC.
	 
	 	 	“AoA” means the articles of association of the Company as amended and supplemented from time
to time.
	 
	 	 	“Registration Authority” means the administration for industry and commerce with which the
Company is registered.
	 
	1.2	 	Unless otherwise expressly indicated or required by the context:

	 	1.2.1	 	any reference to a contract, agreement or document shall mean such contract,
agreement or document as may be amended, supplemented or novated from time to time;
	 
	 	1.2.2	 	any reference to a person in this Agreement or another contract, agreement or
document shall include such person’s successors and permitted assigns;
	 
	 	1.2.3	 	any reference to an Article or Appendix shall be deemed to apply to the
specified Article of or Appendix to this Agreement; and
	 
	 	1.2.4	 	“Party” shall refer to any of the Parties hereto and “Parties” shall refer to
Party A and Party B.

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ARTICLE 2. TRANSFER OF EQUITY INTEREST

	2.1	 	Party B agrees to transfer the Equity Interest to Party A for the price of Renminbi One
Million Two Hundred Thousand (RMB1,200,000) subject to the adjustment in accordance with
Article 2.5 hereof and Party A agrees to pay the amount of Renminbi One Million Two Hundred
Thousand (RMB1,200,000) (the “Transfer Price”) subject to the adjustment in accordance with
Article 2.5 hereof to acquire the Equity Interest from Party B. The Equity Interest shall be
free of any Security Interest. The Parties understand and agree that the adjusted payment
amount of the Renminbi One Million Two Hundred Thousand (RMB1,200,000) in accordance with
Article 2.5 hereof, i.e., the Transfer Price, may be less than Renminbi One Million Two
Hundred Thousand (RMB1,200,000).
	 
	2.2	 	The holding of the equity interest of the Company before the completion of the Proposed
Equity Transfer is set forth as below:

	 	 	 	 	 	 	 	 	 
	Name of shareholder	 	Capital contribution	 	Percentage
	Qian Yang
	 	RMB300,000	 	 	60	%
	Qingang Feng
	 	RMB200,000	 	 	40	%
	Total
	 	RMB500,000	 	 	100	%

	2.3	 	The holding of the equity interest of the Company after the completion of the Proposed Equity
Transfer shall be as follows:

	 	 	 	 	 	 	 
	Name of shareholder	 	Capital contribution	 	Percentage
	Redgate Media Ad Co., Ltd.

	 	RMB500,000
	 	 	100	%
	Total

	 	RMB500,000
	 	 	100	%

	2.4	 	The Parties agree that within seven (7) Business Days after the execution of this Agreement,
Party A shall remit the sum of Renminbi Four Hundred and Eighty Thousand (RMB480,000) into a
joint account opened jointly by the Parties. The withdrawal of any amount from such joint
account shall require the signatures of both Parties’ authorized representatives. The Parties
agree to cause, within three (3) Business Days after the completion of the procedures for
amendment to shareholder register, the aforementioned amount, namely Renminbi Four Hundred and
Eighty Thousand (RMB480,000), to be transferred into a Renminbi bank account designated by the
Company.
	 
	2.5	 	The Parties agree that, within sixty (60) Business Days after the execution of this
Agreement, Party A shall remit the sum of Renminbi One Hundred and Twenty Thousand
(RMB120,000) into a Renminbi account designated by the Company.
	 
	2.6	 	If the Company achieves the revenue and profit targets set forth in the table below during
the performance assessment period, Party A shall pay the remaining Transfer

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	 	 	Price into a Renminbi bank account designated by the Company in accordance with the
arrangements set forth below:

	 	(a)	 	Party A shall be obligated to pay the sum of Renminbi One Hundred and Fifty
Thousand (RMB150,000) within three (3) months after the completion of the transfer of
the Equity Interest, if, and only if, Party B achieves the profit target for the first
quarter set forth in the quarterly assessment target table below;
	 
	 	(b)	 	Party A shall be obligated to pay the sum of Renminbi One Hundred and Fifty
Thousand (RMB150,000) within six (6) months after the completion of the transfer of the
Equity Interest, if, and only if, Party B achieves the profit target for the second
quarter set forth in the quarterly assessment target table below;
	 
	 	(c)	 	Party A shall be obligated to pay the sum of Renminbi One Hundred and Fifty
Thousand (RMB150,000) within nine (9) months after the completion of the transfer of
the Equity Interest, if, and only if, Party B achieves the profit target for the third
quarter set forth in the quarterly assessment target table below; and
	 
	 	(d)	 	Party A shall be obligated to pay the sum of Renminbi One Hundred and Fifty
Thousand (RMB150,000) within twelve (12) months after the completion of the transfer of
the Equity Interest, if, and only if, Party B achieves the profit target for the fourth
quarter and the revenue target for the whole year set forth in the quarterly assessment
target table below.

If Party B fails to achieve the assessment target for a quarter as set forth in the
quarterly assessment target table below, Party A shall not be under any obligation to pay
the Transfer Price corresponding to that quarter.

Quarterly assessment target table

	 	 	 	 	 	 	 	 	 	 	 
	Unit: 
RMB
	 	1st quarter	 	2nd quarter	 	3rd quarter	 	4th quarter	 	Total
	Period
	 	February to 
April 2008	 	May to 
July 2008	 	August to 
October 2008	 	November 2008 to
 January 2009	 	February 2008 to 
January 2009
	Revenue
	 	6 million	 	8 million	 	10 million	 	12 million	 	36 million
	Net profit
	 	720,000	 	960,000	 	1,200,000	 	1,440,000	 	4,320,000

ARTICLE 3. REPRESENTATIONS AND WARRANTIES

	3.1	 	Each Party represents and warrants to the other Party hereto as follows:
	 
	 	 	Each Party has the right, authorization and power to enter into this Agreement and perform the obligations
hereunder and if executed by the Parties, this Agreement shall constitute a lawful, valid and binding
obligation of the Parties that may be enforced pursuant to the terms hereof.
	 
	3.2	 	Party B, jointly, further makes the representations and warranties set forth in Appendix 3
hereto to Party A.

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	3.3	 	Unless expressly indicated otherwise, each Party warrants that each representation and
warranty by that Party, as of the execution date hereof and the Closing Date, are true,
accurate, complete and not misleading to the other Party.
	 
	3.4	 	If any representation or warranty given by either Party is false or erroneous, or if such
representation or warranty is not duly and timely performed, such Party shall be deemed in
breach of such representation or warranty. In addition to performing the other obligations
herein, such Party shall indemnify and bear the losses, damages, expenses (including but not
limited to reasonable legal fees) and liabilities incurred by the non-breaching Party as a
result of such breach, unless the breaching Party proves that it has no knowledge of such
breach as of the date hereof and the breach was not due to its wilful conduct or gross
negligence.
	 
	3.5	 	Before the completion of Closing:

	 	3.5.1	 	if either Party becomes aware that any representation or warranty made
hereunder by such Party is untrue, inaccurate, incomplete or misleading to the other
Party, such Party shall promptly notify the other Party thereof in writing;
	 
	 	3.5.2	 	the breaching Party shall promptly take measures to cure such breach. If such
Party fails to cure the breach within 30 days from the date of giving the written
notice specified in Article 3.5.1, the Parties shall negotiate in good faith so as to
reach a resolution acceptable to all the Parties; and
	 
	 	3.5.3	 	if the breach of the representation or warranty remains uncured within 30 days
after commencement of the good faith consultations mentioned in Article 3.5.2 and the
Parties are not able to reach a resolution, the non-breaching Party may select to
continue the Closing or terminate this Agreement. If the non-breaching Party selects
to continue the Closing, the Party in breach shall in no event be deemed to have been
released from its liability for breach of contract under Article 3.4 hereof. No
termination shall affect the rights and obligations that may have arisen hereunder.

ARTICLE 4. CLOSING

	4.1	 	The Closing is conditioned to the fulfillment of the Conditions set forth in Appendix 2.
	 
	4.2	 	The Parties shall use all reasonable efforts to procure fulfillment of all of the Conditions.
If any Condition is not fulfilled within one month from the execution date hereof, the
Parties shall promptly negotiate to seek a mutually acceptable solution. If a solution shall
have not reached within three months from the execution date hereof:

	 	4.2.1	 	this Agreement shall terminate upon the expiry of such three-month period,
unless the Parties agree otherwise in writing; such termination shall not affect the
Parties’ rights and obligations that may have arisen hereunder at the time of
termination; and

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	 	4.2.2	 	each Party shall take all necessary or appropriate actions to restore itself
to the position such Party was in prior to the execution hereof, including but not
limited to making applications to the relevant PRC authorities to cancel any
registrations that may have been made in connection with the transactions contemplated
hereby or any other registrations made for the same purpose.

	4.3	 	Either Party shall have the right to notify the other Party in writing that it waives any or
all of the Conditions that the other Party is required to fulfill.
	 
	4.4	 	The Closing of the Proposed Equity Transfer shall take place in Beijing on the Closing Date.
At the time of the Closing, Party B shall deliver to Party A a photocopy, bearing the
Company’s official seal, of the document evidencing that the change in the registration of the
Company has been made with the Registration Authority, and make the original available.
	 
	4.5	 	The non-breaching Party may claim against the breaching-Party and demand that the
breaching-Party indemnifies all claims, expenses, costs, losses and liabilities incurred or
arising in connection with the breach, whether directly or indirectly, if:

	 	4.5.1	 	Party B fails to perform or fails to perform in a timely manner its
obligations under Article 4.1 hereof, thereby making the Closing of the transfer of the
Equity Interest impossible; or

	 	4.5.2	 	Party A fails to pay to Party B the Transfer Price in full pursuant to the
schedule set forth in Article 2 hereof.

	4.6	 	Except in the circumstance set forth in Article 4.2 hereof, if the Closing does not commence
within five Working Days after the execution date hereof due to a reason not attributable to
the Parties hereto, the Parties shall promptly negotiate to seek an acceptable solution; if
the Parties fail to reach a solution within 15 Working Days after the execution date hereof:

	 	4.6.1	 	this Agreement shall terminate upon the expiry of such 15 Working Day period,
unless the Parties agree otherwise in writing; such termination shall not affect the
Parties’ rights and obligations that may have arisen hereunder at the time of
termination; and
	 
	 	4.6.2	 	each Party shall take all necessary or appropriate actions to restore itself
to the same position such Party was in prior to the execution hereof, including but not
limited to making applications to the relevant PRC authorities to cancel any
registrations that may have been made in connection with the transactions contemplated
hereby or any other registrations made for the same purpose.

ARTICLE 5. FURTHER COVENANTS

	5.1	 	Each Party shall further execute the documents and take the acts that may be reasonably
required for the full performance under this Agreement.
	 
	5.2	 	Party B, as shareholders of the Company prior to the Closing Date, shall not do, and shall
not permit the Company to do, anything during the period between the execution

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	 	 	date hereof and the Closing Date that could have a material adverse effect on the Equity
Interest and/or the Company. Party B undertakes that, unless obtaining the prior written
consent of Party A:

	 	5.2.1	 	the Company will conduct its business in its ordinary course and, other than
payments made in its ordinary course of business, will not make (or agree to make) any
other unnecessary payments; notwithstanding the foregoing, the Company shall not make
any single cash payments exceeding RMB50,000 or cash payments that in the aggregate
exceed RMB150,000, regardless of whether in the ordinary course of business;
	 
	 	5.2.2	 	the Company will adopt all reasonable procedures to maintain and protect its
assets, use its best efforts to retain its existing management and core technology
personnel and maintain the relationships with its clients, suppliers and other third
parties so as not to harm its reputation or prospects;
	 
	 	5.2.3	 	Party A has the right during normal working hours and after prior written
notice to obtain and make photocopies of the Company’s financial statements;
	 
	 	5.2.4	 	Party B has not committed any acts or omissions that constitute or result in
the breach of its representations and warranties;
	 
	 	5.2.5	 	if the factual basis of the representations and warranties made by Party B
changes, and thereby causes a material adverse effect on the Closing hereunder, Party B
shall promptly disclose such facts to Party A;
	 
	 	5.2.6	 	the Company has not declared, paid or prepared to pay dividends or any other
profit distribution;
	 
	 	5.2.7	 	the Company has not increased its capital or agreed to increase its capital;
	 
	 	5.2.8	 	other than the loans disclosed to Party A by the Company prior to the
execution date hereof, the Company has not incurred or extended loans;
	 
	 	5.2.9	 	unless otherwise pursuant to laws, statutes, rules or regulations, the Company
has not modified the terms of the employment contracts with its employees (including
the management) that results in an increase in the Company’s aggregate personnel costs
for the year;
	 
	 	5.2.10	 	the Company has not provided guarantees to Party B;
	 
	 	5.2.11	 	Party B has not taken any actions that are inconsistent with the provisions hereof or
the transactions contemplated hereby;
	 
	 	5.2.12	 	Party B and/or the Company shall, to the extent possible, notify Party A in writing
of all events or acts not within the ordinary course of business; such events shall
include but not be limited to the following, and may be supplemented as necessary by
the Parties, confirmation in writing:

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	 	(a)	 	a restructuring of the Company’s capital structure, the
amendment of the Company’s AoA or other change in the Company’s registered
business; in such event, Party B shall disclose to Party A the terms of the
transactions relating to the restructuring of the Company’s capital;
	 
	 	(b)	 	agreements involving intellectual property executed between the
Company and any third party, regardless of whether the title to intellectual
property owned by the Company changes, including but not limited to change by
transfer, gifting, etc., or intellectual property owned by the Company is
licensed to a third party or the Company has use of a third party’s
intellectual property pursuant to such agreement.

ARTICLE 6. RIGHTS OF THE PARTIES

	6.1	 	If Party A becomes aware of any of the following facts, matters or events at any time prior
to the Closing, Party A may notify Party B and/or the Company in writing prior to the Closing
and terminate this Agreement without liability. Additionally, it may demand that the
breaching Party bear the liability for breach of contract under Article 9 hereof:

	 	6.1.1	 	any act of Party B and/or the Company that constitutes a fundamental breach of
this Agreement and causes it impossible for Party A to complete the acquisition of the
Equity Interest;
	 
	 	6.1.2	 	the occurrence or existence of any matter that constitutes a breach of any
representation or warranty, which has a material adverse effect on the Company and the
Closing hereunder; or
	 
	 	6.1.3	 	any event that has or may have a material adverse effect on the Company’s
business, financial condition or prospects.

	6.2	 	If Party B becomes aware of any of the following facts, matters or events at any time prior
to the Closing, Party B may notify Party A in writing prior to the Closing and terminate this
Agreement without liability. Additionally, Party B may demand that the breaching Party bear
the liability for breach of contract under Article 9 hereof:

	 	6.2.1	 	any act of Party A that constitutes a fundamental breach of this Agreement and
causes it impossible for Party B to receive the Transfer Price;
	 
	 	6.2.2	 	any event that has or may have a material adverse effect on the contemplated
transactions arises between the execution date hereof and the Closing Date that
constitute a willful misconduct or gross negligence on the part of Party A.

ARTICLE 7. CONFIDENTIALITY

	7.1	 	A Party (the “Receiving Party”) that receives the Confidential Information from the other
Party shall keep such information confidential, not use such information for any purpose other
than the purposes contemplated by this Agreement and not disclose the Confidential Information
to any third party. Notwithstanding the foregoing restrictions, such confidentiality
obligations shall not apply to:

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	 	7.1.1	 	information that is in or enters the public domain other than attributable to
the wrongful conduct of the Receiving Party or its representatives, agents, suppliers
or subcontractors;
	 
	 	7.1.2	 	information legitimately and legally obtained by the Receiving Party from a
third party, provided that such information is not subject to confidentiality
obligations or restrictions on use; or
	 
	 	7.1.3	 	information that has been in the possession of the Receiving Party in written
form, is not subject to restrictions on use or disclosure and is not obtained from the
other Party hereto for the purposes of this Agreement.

	7.2	 	Notwithstanding Article 7.1, the Receiving Party may disclose the Confidential Information to
its or the Company’s employees, directors and professional advisors, provided that such
disclosure is reasonably necessary for the purposes of this Agreement. The Receiving Party
shall ensure that such employees, directors and professional advisors are aware of and comply
with the confidentiality obligations set forth in this Article. If the disclosure of the
Confidential Information is required by law or requested by a court or regulatory authority
having jurisdiction, the Receiving Party may disclose such Confidential Information, provided
that the Receiving Party shall, to the extent permitted by relevant laws and statutes, take
all permitted actions to cause the Confidential Information to be treated confidential.
	 
	7.3	 	The Receiving Party shall not reproduce any Confidential Information in any manner.

ARTICLE 8. NOTICES

	8.1	 	Any notice hereunder shall be made in writing and dispatched by fax or registered mail to the
recipient’s designated number or address. Notices dispatched by the aforementioned means
shall be deemed received:

	 	8.1.1	 	twelve (12) hours after transmission, if dispatched by fax; and
	 
	 	8.1.2	 	three (3) days after consignment to the post office, if dispatched by
registered mail.

	8.2	 	If Party A dispatches a written notice to Party B pursuant to Article 8.1 hereof, it shall
dispatch the same to Party B at the following fax numbers or correspondence addresses:
	 
	 	 	Qian Yang
	 
	 	 	Fax number: 010-58634084
	 
	 	 	Correspondence address: Flat 103, Entrance 2, Building 20, Regal Court, No. 23A West Dawang
Road, Chaoyang District, Beijing
	 
	 	 	Attn.: Qian Yang

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	 	 	Qingang Feng
	 
	 	 	Fax number: 010-58634084
	 
	 	 	Correspondence address: Flat 103, Entrance 2, Building 20, Regal Court, No. 23A West Dawang
Road, Chaoyang District, Beijing
	 
	 	 	Attn.: Qian Yang

	8.3	 	If Party B dispatches a written notice to Party A pursuant to Article 8.1 hereof, it shall
dispatch the same to Party A at the following fax number or correspondence address:
	 
	 	 	Fax number: 010-85263129
	 
	 	 	Correspondence address: 8th Floor, Tower B, CITIC Building, 19 Jianguomenwai Avenue,
Chaoyang District, Beijing
	 
	 	 	Attn.: Ying Zhu

ARTICLE 9. LIABILITY FOR BREACH OF CONTRACT

	9.1	 	If a Party breaches any of the provisions hereof, it shall compensate the non-breaching Party
for all claims, expenses, costs, losses and liabilities incurred or arising in connection with
such breach, whether directly or indirectly. If the breaching Party is one of the parties
comprising Party B and/or the Company, Party B shall jointly and severally bear the
liabilities in respect of the compensation for such breach.
	 
	9.2	 	Without prejudice to any of the other provisions of this Article 9, if a Party fails to
perform any of its obligations hereunder, the other Party shall, in addition to exercising any
other rights and remedies available hereunder, be entitled to demand that the breaching Party
performs the relevant obligation and the Parties expressly waive the defense of sufficiency of
damages.
	 
	9.3	 	Without prejudice to any of the other provisions in this Article 9, if a party comprising
Party B fails to fully transfer the Equity Interest to Party A on the terms and conditions
hereof, Party A shall have the right to demand in writing that Party B transfer the Equity
Interest to it on the terms and conditions hereof. If Party B does not make the change in
business registration for the transfer of Equity Interest within seven Working Days after
receipt of the written notice from Party A, Party A shall be entitled to unilaterally
terminate this Agreement on the basis of such material breach and demand compensation for the
losses, damages and costs (including but not limited to reasonable legal cost) incurred by it
in connection with the transfer of Equity Interest before the termination of this Agreement.

ARTICLE 10. EXPENSES AND TAXES

	10.1	 	Each Party shall bear its own expenses (including but not limited to legal, accounting,
financial, consulting, advisory and other related expenses) in connection with all the
negotiation and the implementation of the final agreement (e.g., this Agreement (including the
Appendices)) and the acquisition.

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	10.2	 	Each Party shall pay any taxes it may be required to pay in connection with the transfer of
Equity Interest hereunder. Each Party shall pay the stamp duty in respect of the original of
this Agreement held by it.

ARTICLE 11. DISPUTE RESOLUTION

Any dispute arising from or in connection with this Agreement, including disputes over the validity
or existence of this Agreement, shall be resolved by the Parties through good faith negotiation.
If the dispute is not resolved within 30 days after a Party gives notice requesting such
negotiation, either Party shall have the right to submit the dispute to the arbitration by Beijing
Arbitration Commission in Beijing in accordance with its arbitration rules then in effect. The
arbitration award shall be final and binding on the Parties.

ARTICLE 12. GOVERNING LAW

This Agreement shall be governed by, and construed in accordance with, the laws of the People’s
Republic of China.

ARTICLE 13. LANGUAGE

This Agreement is made in Chinese in four counterparts, of which Party A shall hold one original,
each party comprising Party B shall hold one original and the remaining original shall be used to
make all necessary registration amendments with the relevant Registration Authority.

ARTICLE 14. ENTIRE CONTRACT

This Agreement, including the attached Annexes, Appendices and Schedules, supersedes all prior
written or oral contracts on the matters provided for herein reached by the Parties and constitutes
the entire contract between the Parties.

ARTICLE 15. EFFECTIVENESS

This Agreement shall enter into effect on the date that it is signed/sealed by the Parties or their
authorized representatives.

IN WITNESS WHEREOF, this Agreement is duly executed by the Parties on the date first set forth
above.

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APPENDIX 1. PARTICULARS OF THE COMPANY AND ITS SUBSIDIARIES

A. Particulars of the Company

	 	 	 	 	 	 	 
	1.

	 	Name of the Company
	 	:
	 	Beijing Alliance Online Advertising Company Ltd.
	 
	 	 	 	 	 	 
	2.

	 	Legal address
	 	:
	 	Flat 807, No. 39 Residential Building,
Shuguangli, Chaoyang District, Beijing
	 
	 	 	 	 	 	 
	3.

	 	Establishment date
	 	:
	 	July 14, 2005
	 
	 	 	 	 	 	 
	4.

	 	Place of establishment
	 	:
	 	Chaoyang District, Beijing, the PRC
	 
	 	 	 	 	 	 
	5.

	 	Business
	 	:
	 	Public relation activity planning and
implementation, and advertising media
businesses
	 
	 	 	 	 	 	 
	6.

	 	Legal representative
	 	:
	 	Qian Yang
	 
	 	 	 	 	 	 
	7.

	 	Executive director
	 	:
	 	Qian Yang
	 
	 	 	 	 	 	 
	8.

	 	Registered capital
	 	:
	 	RMB500,000
	 
	 	 	 	 	 	 
	9.

	 	Shareholders
	 	:
	 	Capital contribution by Qian Yang: RMB300,000,
representing 60% of the registered capital;
Capital contribution by Qingang Feng: RMB200,000, representing 40% of the registered
capital
	 
	 	 	 	 	 	 
	10.

	 	Auditor
	 	:
	 	None
	 
	 	 	 	 	 	 
	11

	 	Business term
	 	:
	 	20 years (from July 14, 2005 to July 13, 2025)

12

 

APPENDIX 2. CONDITIONS PRECEDENT TO CLOSING

	1.	 	The Closing of the Proposed Equity Transfer is conditioned on the fulfillment of all of the
following Conditions or the waiver thereof in writing by the interested Party:

	 	1.1	 	Party A shall be responsible for:
	 
	 	 	 	executing the AoA of the Company in the form of the Annex attached to this Appendix
2 and all legal documents that Party A is required to execute in order to complete
the Proposed Equity Transfer.
	 
	 	1.2	 	Party B and the Company shall be jointly responsible for ensuring that:

	 	(1)	 	the Company has secured all permits, approvals, licenses,
authorizations, etc. that are required by law in order to conduct its business;
	 
	 	(2)	 	Qian Yang of Party B and all of the management personnel or
core technology personnel specified in Schedule 2 have executed with the
Company the Intellectual Property Protection and Non-Compete Agreement as set
forth in Appendix 4 and the Non-Disclosure Agreement as set forth in Appendix
5;
	 
	 	(3)	 	the Company has executed the employment contracts with all of
its employees that meet the legal requirements and has provided insurance
coverage and other benefits required by relevant laws, including the “three
insurances and one fund” to all its employees;
	 
	 	(4)	 	Party B has provided all the documents relating to any
occurrence of the changes in the Equity Interest as disclosed on the Disclosure
Schedule and the Company has provided the financial statements as of November
30, 2007 for the most recent three years prepared by a qualified accounting
firm in accordance with the current and valid generally accepted accounting
standards of the PRC or generally accepted international accounting standards;
	 
	 	(5)	 	the Company’s shareholder meeting has adopted the resolution in
connection with the Proposed Equity Transfer and the amendments to the AoA;
	 
	 	(6)	 	all other legal documents required to be executed by this
Agreement or required to be executed in order to complete the Proposed Equity
Transfer are executed;
	 
	 	(7)	 	registration with the competent administration for industry and
commerce of the changes in the Company’s Equity Interest and other relevant
changes is completed;
	 
	 	(8)	 	the directors and legal representative originally appointed by
Party B have resigned from their respective positions in the Company and

13

 

	 	 	 	confirmed in writing that they have waived any claim of right to severance
pay and any other related issues they may have against the Company; and
	 
	 	(9)	 	registration or filing procedures for the directors and legal
representative appointed by Party A have been made with the competent
administration for industry and commerce.

14

 

APPENDIX 2. ANNEX — ARTICLES OF ASSOCIATION

15

 

APPENDIX 3. REPRESENTATIONS AND WARRANTIES

In addition to the matters expressly disclosed in the Disclosure Schedule attached herewith as
Appendix 6, Party B and the Company make on the execution date hereof the representations and
warranties set forth below in respect of the following matters on and before the execution date:

	1.	 	Authorizations: Party B and the Company have secured the full and necessary
authorizations to execute this Agreement, perform all of the obligations under this Agreement
and complete the transactions under this Agreement. This Agreement is legally binding on
Party B and the Company.
	 
	2.	 	No conflict: The execution and performance of this Agreement shall not breach or
conflict with any of the provisions of the Company’s AoA or other organizational documents of
the Company or violate any mandatory laws or statutes of the PRC. Party B and the Company
have secured the third party approvals or authorizations required for the transactions
contemplated under this Agreement.
	 
	3.	 	Valid existence of the Company and Party B’s Equity Interest: The Company is a duly
established and validly existing limited liability company. Party B is the legal owner of the
Company’s Equity Interest, is entitled to the rights attaching to the Equity Interest and
undertake the corresponding obligations. Other than the Proposed Equity Transfer and the
changes in the equity interest that have occurred and been disclosed by Party B and the
Company on the Disclosure Schedule, no transfer, nomination, trust, Security Interest, etc.
have been made in respect of the Equity Interest.
	 
	4.	 	Investments: The Company has no investment or commercial operation other than the
investments and commercial operations of its subsidiaries (including but not limited to
subsidiaries, branches, offices or establishments; as well any other entities directly or
indirectly controlled by or in which the Company has an equity interest or any other entities
in which the Company has an equity interest) that are disclosed in the Disclosure Schedule.
	 
	5.	 	Financial Statements: The financial statements as of November 30, 2007 (the “Balance
Sheet Date”) set forth in Appendix 7 truthfully, completely and accurately reflect the
Company’s operation and financial conditions for the relevant periods or on the relevant
reference dates. All of the Company’s audited accounts and management accounts (including
transfer accounts) have been prepared pursuant to the financial and accounting systems
provided for in the relevant laws of the PRC with the consideration of the Company’s actual
circumstances, and truthfully and fairly reflect the Company’s financial and operational
conditions as of the relevant account dates. The Company’s financial records and information
comply with the requirements of the PRC laws and statutes and meet the PRC accounting
standards.
	 
	6.	 	Undisclosed debts: Other than the debts set forth below, the Company does not have
any debts that are not recorded on its balance sheets: (1) those disclosed in the Disclosure
Schedule; and (2) debts incurred in the ordinary course of business after the Balance Sheet
Date that are not prohibited by this Agreement and shall not have a material adverse effect on
any shareholder of the Company or the Company itself. Other than the items set forth in the
Disclosure Schedule, the Company has never

16

 

	 	 	undertaken an obligation for providing security in the form of guarantee to third parties or
created a mortgage, pledge or other security interest on its property.
	 
	7.	 	Capital structure: The equity structure of the Company’s registered capital as
specified in the Company’s AoA and the AoA amendments registered with the administration for
industry and commerce is consistent with that specified in the Company’s AoA and the AoA
amendments (with the Equity structure as set forth in the Disclosure Schedule) provided to
Party A by Party B, and accurately and completely reflects the Company’s capital structure
prior to the Closing. The Company has never in any manner whatsoever undertaken to issue or
actually issued to any third party any of the Company’s equity interest, shares, bonds,
options or rights or interests of identical or similar nature other than the aforementioned
Equity Interest.
	 
	8.	 	No change: During the period between the Balance Sheet Date and the execution date
hereof, the Company has not carried out any of the following acts, unless otherwise provided
herein or disclosed by Party B and the Company in the Disclosure Schedule and approved in
writing by Party A:

	 	i.	 	prepaid any debt;
	 
	 	ii.	 	provided security to a third party in the form of a guarantee or created a
mortgage, pledge or other security interest on its property;
	 
	 	iii.	 	released any third party from a claim or waived any right of recourse;
	 
	 	iv.	 	amended any existing contract or agreement;
	 
	 	v.	 	paid a bonus to any management officers, directors, employees, sales
representatives, agents or advisors or increased their income in any other manner or
raised the remuneration of the five highest paid persons in the Company or the
executive directors, management officers or other senior management officers by more
than 10% during the past 12 months;
	 
	 	vi.	 	incurred any loss (insured or not) or experienced any change in the
relationship with any supplier, client or employee whereby such loss or change would
have a material adverse effect on the Company;
	 
	 	vii.	 	changed the Company’s accounting methodologies, policies or principles, or
financial and accounting rules and systems;
	 
	 	viii.	 	transferred or licensed any of the Company’s intellectual property rights to
any third parties other than in the ordinary course of business;
	 
	 	ix.	 	made a material change in the Company’s sales practice or accounting method or
a material change in the Company’s employment policies, rules or regulations;

17

 

	 	x.	 	experienced a material adverse change in the Company’s financial condition or
undertaken a transaction other than in the ordinary course of business whereby
liabilities have arised;
	 
	 	xi.	 	adopted any shareholders’ resolution or board resolution different from those
for the conventional matters discussed at ordinary annual shareholders’ meetings, other
than resolutions adopted for the purpose of performing this Agreement;
	 
	 	xii.	 	declared, paid or committed to, or be in the process of declaring, paying or
committing to any dividends, bonuses or other forms of shareholder distribution;
	 
	 	xiii.	 	(i) undertaken any asset sale, mortgage, pledge, lease, assignment or other
disposal other than in the ordinary course of business whereby the total transaction
amount exceeds RMB10,000; (ii) undertaken a disposal of any fixed assets or agreement
to the disposal or acquisition of any fixed assets other than in the ordinary course of
business, released the control over any of the Company’s assets, entered into any
contract resulting in payment made in the form of any fixed assets or caused the
incurrence of other liabilities; (iii) made any expenditure or any purchase of tangible
or intangible assets (including equity investment in any company) other than in the
ordinary course of business whereby the total amount exceeds RMB10,000;
	 
	 	xiv.	 	undertaken any transaction or act other than in the ordinary course of
business; or
	 
	 	xv.	 	undertaken any act or omission that could lead to any of the aforementioned
circumstances.

	9.	 	Taxes: The Company has completed all tax registrations required by laws and statutes
and paid all taxes payable.
	 
	10.	 	Assets: The specific breakdown of all the fixed and intangible assets lawfully owned
and used by the Company is set forth in the Disclosure Schedule.
	 
	11.	 	Immovable assets: The Company does not have any real estate or related, interests or
obligations.
	 
	12.	 	Contracts: Party B and the Company have provided to Party A or third parties
designated by it photocopies, that are true to the originals, of all of the Company’s existing
and valid written contracts and warrant that all such contracts are valid and enforceable by
law.
	 
	 	 	None of the business contracts entered into between the Company and a transactional
counterparty has given rise to the risk of invalidity, being rescinded or granting the
counterparty the right to unilaterally terminate the same pursuant to the provision of any
laws and currently and until the Closing Date, there is no indication of the possibility of
such risk arising.

18

 

	 	 	The Company is not a party to or bound by any contract, agreement or other document that:

	 	i.	 	was not executed in the ordinary course of business;
	 
	 	ii.	 	was not executed on a completely equitable basis;
	 
	 	iii.	 	would cause the Company to incur a loss or harm the Company’s interests;
	 
	 	iv.	 	would be impossible to complete even with any appropriate efforts and
expenditures; or
	 
	 	v.	 	would restrict the Company’s right to conduct its business.

	 	 	The Company is not in breach of any of the terms or obligations under any contract,
agreement or document to which the Company is a party or which is binding on the Company.
	 
	13.	 	Intellectual property: Other than those that have been disclosed in the Disclosure
Schedule, the Company has the lawful ownership of or the right to use all of the intellectual
property (including but not limited to patents, trademarks, copyrights, proprietary
technologies, domain names and trade secrets, etc.) that it currently uses, and the Company
has secured all necessary authorizations and licenses for the intellectual property rights
(including but not limited to copyright licenses for the value added services that it
provides) that are involved in its business activities, but owned by third parties. The
Company has not infringed any intellectual property, trade secrets, proprietary information or
other similar rights of third parties and there are no pending or threatening claims for
damages, disputes or legal proceedings in respect of the Company’s infringement of the
intellectual property, trade secrets, proprietary information or other similar rights of any
third parties. The trademarks, patents, software copyrights and domain names owned by the
Company have been duly registered in accordance with the law.
	 
	14.	 	Litigation: None of the circumstances set forth below that could have a material
adverse effect on the Company or the formation, validity and enforceability of this Agreement
or the Equity transfer under this Agreement, regardless whether it is completed, pending or
threatening or not:

	 	i.	 	sanctions or restrictions imposed on the Company by a radio or television
station;
	 
	 	ii.	 	a penalty, injunction or order against the Company by a government authority;
or
	 
	 	iii.	 	a civil, criminal or administrative action, arbitration or other similar
proceedings or dispute against or with the Company.

	15.	 	Legal Compliance: Other than those that have been disclosed by the Company in the
Disclosure Schedule, the business currently engaged in by the Company complies with the
current and valid laws, statutes, regulations and other administrative

19

 

	 	 	regulations issued by relevant state administrative authorities (hereinafter collectively
referred to as “Statutes”), and the Company has not violated any Statutes, such as would
lead to a material adverse effect on the business or assets operated by the Company.
	 
	16.	 	Employees: Other than those that have been disclosed in the Disclosure Schedule,

	 	i.	 	the employment of staff by the Company has complied with the applicable labor
laws and statutes;
	 
	 	ii.	 	there are no labor disputes or controversies or potential labor disputes or
controversies existing between the Company and its current or former employees;
	 
	 	iii.	 	the Company does not have any severance pay outstanding and owing due to the
termination of any employment and is not under obligation to pay similar compensation
or damages in connection with any employment; and
	 
	 	iv.	 	the Company has paid in full and/or withheld in accordance with relevant laws
and statutes pension, housing, medical, unemployment and all other social insurance
premiums and allowances or employee benefits payable as specified in relevant laws or
agreements, and no existing or potential dispute exists in respect of such social
insurance premiums and allowances or employee benefits.

	17.	 	Other establishments: The Company does not have any branches or offices nor does it
have any long-term investments, such as holding equity, etc., in any other company or
enterprise.
	 
	18.	 	Special representations and warranties of Party B and the Company: In addition to the
foregoing general representations and warranties, Party B and the Company jointly make the
following representations and warranties:

	 	i.	 	all documents, including books of account, records of change in equity,
financial statements and all other corporate records of the Company, are kept in
accordance with the ordinary commercial practice and are all in the possession of the
Company, and all major transactions relating to the Company’s business are accurately
and compliantly recorded and kept on file;
	 
	 	ii.	 	as of the capital increase closing date, the Company’s documents, including
minutes of board and shareholders’ meetings and the register of shareholders, have been
duly kept, which have completely and accurately recorded the matters that ought to be
recorded in such documents;
	 
	 	iii.	 	since the Balance Sheet Date in Appendix 7: (1) other than the Company’s normal
business activities, no event triggering the calling of the Company’s debts has
occurred; (2) other than in the ordinary course of business, none of the Company’s
property has been disposed of or removed from the Company’s possession and the Company
has not executed any agreements

20

 

	 	 	 	resulting in any non-routine financial expenditures by the Company or giving rise to
any liabilities;
	 
	 	iv.	 	the Company has submitted the information requested by a tax authority that has
made such a request; as of the execution date of this Agreement, no dispute over the
Company’s tax obligations, potential tax obligations or tax breaks exists between the
Company and the tax authorities;
	 
	 	v.	 	the Company retains sufficient information used in normal tax records and tax
payments and full documentation of the tax breaks approved by relevant government
authorities; and
	 
	 	vi.	 	other than the employee benefits and social and pension security required by
the Labor Law of the People’s Republic of China and related regulations, the Company
has not provided any related employment, retirement or pension benefits or security.

	19.	 	Information disclosure: All of the documents, materials and information provided to
Party A by Party B and the Company before and after the execution of this Agreement are or
will be true, accurate, free of omissions and not misleading.
	 
	20.	 	On the Closing Date, Party B and the Company shall, in line with the actual circumstances at
such time, repeat the foregoing representations and warranties to the investor.

21

 

APPENDIX 3

Schedule 1. Intellectual Property

	 	 	A            Intellectual property owned by the Company (none)
	 
	 	 	B            Intellectual property licensed to the Company (none)

22

 

APPENDIX 3

Schedule 2. List of Senior Management Officers

List of senior management officers of Beijing Alliance Online Advertising Company Ltd.

Qian Yang, Chairman of the Board and General Manager of Beijing Alliance Online Advertising Company
Ltd.

	 	 	 
	Education:

	 	Junior college
	Major:

	 	Advertising

Worked in the design and client service department with Beijing Tonglida Advertising Co., Ltd.,
served as the deputy general manager of Beijing Art Online Transmission Co., Ltd., sales manager
with Jean-Louis Scherrer, assistant to the president of Dc Design Beijing Co., Ltd. and deputy
general manager of Beijing Dongfangzhizhu Advertising Co., Ltd. After studying in New Zealand,
established Beijing Alliance Online Advertising Company Ltd. after returning to China.

Lin Yan, Deputy General Manager of Beijing Alliance Online Advertising Company Ltd.

	 	 	 
	Education:

	 	University
	Degree:

	 	Bachelor of Education
	Major:

	 	Education

Served as the general manager of Beijing Yingxiang Transmission Co., Ltd., client director with
Walter Thompson Advertising Co., Ltd. and deputy general manager of Beijing Dongfangzhizhu
Advertising Co., Ltd.

Yaohua Peng, Strategic Planning Manager of Beijing Alliance Online Advertising Company Ltd.

	 	 	 
	Education:

	 	University
	Degree:

	 	Bachelor of Management
	Major:

	 	International finance and business administration

Served as the strategic planning manager with Shenzhen Tiandijie Advertising Co., Ltd., strategic
planning director with Shenzhen Ceyuan Advertising Co., Ltd., strategic planning manager with
Beijing Dongfangzhizhu Advertising Co., Ltd. and strategic planning manager with Shenzhen Greatwall
Shenghua Advertising Co., Ltd.

23

 

APPENDIX 4.

NON-COMPETE AGREEMENT

[See Exhibit 10.6.5]

24

 

APPENDIX 5.

NON-DISCLOSURE AGREEMENT

[See Exhibit 10.6.3]

25

 

APPENDIX 6.

DISCLOSURE SCHEDULE

[None]

26

 

APPENDIX 7.

FINANCIAL STATEMENTS

Income Statement

	 	 	 	 	 	 	 
	Compiled by

	 	November, 2007
	 	 
	 	Unit: RMB Yuan

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of Current Month	 	 	Current Year Cumulative Amount	 
	 	 	Line	 	 	 	 	 	 	Hundred	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Ten	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hundred	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Ten	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Item	 	No.	 	 	Ten	 	 	Million	 	 	Thousand	 	 	Hundred	 	 	Ten	 	 	Thousand	 	 	Thousand	 	 	Hundred	 	 	Ten	 	 	Yuan	 	 	Jiao	 	 	Fen	 	 	Ten	 	 	Million	 	 	Thousand	 	 	Hundred	 	 	Ten	 	 	Thousand	 	 	Thousand	 	 	Hundred	 	 	Ten	 	 	Yuan	 	 	Jiao	 	 	Fen	 
	I. Commodity Sales Revenue
	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	6	 	 	 	4	 	 	 	4	 	 	 	6	 	 	 	9	 	 	 	2	 	 	 	8	 	 	 	0	 
	Less: Sales
Discount and
Allowance
	 	 	2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Revenue from
Commodity Sales
	 	 	3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Less: Cost of
Commodity Sales
	 	 	4	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	6	 	 	 	2	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	Operating
Expenses
	 	 	5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8	 	 	 	9	 	 	 	5	 	 	 	7	 	 	 	3	 	 	 	2	 	 	 	6	 	 	 	4	 
	Tax and Extra
Charges on
Commodity
Sales
	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8	 	 	 	8	 	 	 	1	 	 	 	1	 	 	 	8	 	 	 	6	 	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II. Profits on
Commodity Sales
	 	 	10	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4	 	 	 	9	 	 	 	8	 	 	 	8	 	 	 	4	 	 	 	1	 	 	 	5	 	 	 	0	 
	Add: Income from
purchase and
sales commission
	 	 	11	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	III. Main Operating
Profits
	 	 	14	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Add: Other
Operating
Profits
	 	 	15	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

27

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of Current Month	 	 	Current Year Cumulative Amount	 
	 	 	Line	 	 	 	 	 	 	Hundred	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Ten	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hundred	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Ten	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Item	 	No.	 	 	Ten	 	 	Million	 	 	Thousand	 	 	Hundred	 	 	Ten	 	 	Thousand	 	 	Thousand	 	 	Hundred	 	 	Ten	 	 	Yuan	 	 	Jiao	 	 	Fen	 	 	Ten	 	 	Million	 	 	Thousand	 	 	Hundred	 	 	Ten	 	 	Thousand	 	 	Thousand	 	 	Hundred	 	 	Ten	 	 	Yuan	 	 	Jiao	 	 	Fen	 
	Less: Administrative
Expenses
	 	 	16	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7	 	 	 	4	 	 	 	8	 	 	 	6	 	 	 	3	 	 	 	4	 	 	 	7	 	 	 	5	 
	Financial
Expenses
	 	 	17	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	2	 	 	 	1	 	 	 	6	 	 	 	8	 	 	 	0	 
	Exchange
Losses
	 	 	18	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IV. Operating
Profits
	 	 	20	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	2	 	 	 	4	 	 	 	9	 	 	 	5	 	 	 	7	 	 	 	6	 	 	 	4	 	 	 	5	 
	Add: Investment
Proceeds
	 	 	21	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Subsidy Income
	 	 	22	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Non-operating
Income
	 	 	23	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Less: Non-operating
Expenses
	 	 	24	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Add: Profit and
Loss Adjustment
of Previous
Years
	 	 	25	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	V. Total Profits
	 	 	30	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Less: Income Tax
	 	 	31	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	2	 	 	 	4	 	 	 	9	 	 	 	5	 	 	 	7	 	 	 	6	 	 	 	4	 	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	VI. Net Profits
	 	 	35	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	2	 	 	 	4	 	 	 	9	 	 	 	5	 	 	 	7	 	 	 	6	 	 	 	4	 	 	 	5	 

	 	 	 	 	 	 	 
	Principal

	 	Accounting Manager :
	 	Rechecked by:
	 	Prepared by :

28

 

Signature Page

	 	 	 	 	 
	REDGATE MEDIA AD CO., LTD. [company seal]

 	 	 
	By:  	/s/Yue Jin
 	 	 
	 	Name of Legal Representative: Yue Jin 	 	 
	 	 	 	 

	 	 	 	 	 
	QIAN YANG

 	 	 
	Signature:  	/s/Qian Yang
 	 	 
	 	 	 	 

	 	 	 	 	 
	QINGANG FENG

 	 	 
	Signature:  	/s/Qingang Feng
 	 	 
	 	 	 	 
	 	 	 	 
	 

29exv10w6w2

Exhibit 10.6.2

Subscription Agreement

February 2, 2008

Redgate Media Inc.

Redgate Media AD Co., Ltd.

and

Yang Qian

 

SUBSCRIPTION AGREEMENT

 

 

 

Subscription Agreement

THIS SUBSCRIPTION AGREEMENT (this “Agreement”) is made in Beijing, the People’s Republic of
China (the PRC), on February 2, 2008

Among

Redgate Media Inc. (“Company”), a company incorporated under the laws of Cayman Islands with its
registered office at Scotia Centre, 4th Floor, P.O. Box 2804, George Town, Grand Cayman, Cayman
Islands, British West Indies;

and

Redgate Media AD Co., Ltd  (  ) (“PRC Redgate  ( )” ),
a company incorporated under the laws of the PRC with its registered
office at 8/F CITIC Building B, 19 Jianguomenwai St, Chaoyang, Beijing, China;

and

Yang Qian (“Subscriber”), citizen of the PRC, whose PRC identity card number is
110105720423112

The Company, PRC Redgate () and the Subscriber are collectively referred to as the
“Parties” and individually as a “Party”.

Recitals:

	A.	 	Subject to this Agreement, the Company has agreed to issue or procure the issuance of the
Subscribed Shares (as defined hereinafter) or effect cash payment (“Total Consideration”, has
the meaning as set out in the Article 1 of this Agreement) to the Subscriber in consideration
of the Subscriber’s undertaking of the non-competition obligations to the Company as set out
herein;
	 
	B.	 	The obligations of the Parties referred to in Recital A are subject to satisfaction or waiver
of the conditions precedent hereunder.

2

 

Subscription Agreement

Therefore, in consideration of the mutual covenants and undertakings contained herein, and subject
to and on the terms and conditions herein set forth, the Parties hereto agree as follows:

ARTICLE
1 DEFINITIONS

Section 1.1
Specific Definitions

As used in this Agreement, the following terms shall have the meanings set forth or referenced
below:

“Business Day” means any day other than a Saturday, a Sunday or a day in which banks in either the
PRC or the Hong Kong Special Administrative Region (“Hong Kong”) are closed for business.

“Completion” means the completion of the issue and allotment of the Tranche A Completion, Tranche B
and Tranche C Completion respectively.

“Confidential Information” means all confidential, non-public or proprietary information belonging
to a Party regardless of how the information is stored or delivered, exchanged between the Parties
before, on or after the date of this Agreement relating to the business, technology or other
affairs of the Party who provides such information, but excludes information which:

	 	(i)	 	is in or becomes part of the public domain other than through a breach of this
Agreement or an obligation of confidence owed to the Party to whom the information
belongs;
	 
	 	(ii)	 	the recipient of the information can prove was already known to it at the time of
disclosure by the Party to whom the information belongs (unless such knowledge arose
from disclosure of information in breach of an obligation of confidentiality); or
	 
	 	(iii)	 	the recipient acquires from a source other than the Party to whom the
information belongs, where such source is entitled to disclose the same to the
recipient.

“Encumbrance” means any mortgage, pledge, option, right of first refusal or any other kind of
security interest or claim against a proprietary right.

3

 

Subscription Agreement

“Equity Transfer Agreement” means the equity transfer agreement in relation to 100% of equity
interests of Alliance Online Advertising Co., Ltd. () (“Alliance Online”)
to be entered into by and among PRC REDGATE (), Alliance Online and the Subscriber on the
same date as this Agreement.

“IPO” means an initial public offering of the shares of the Company on any stock exchange (or if
any subsidiary of the Company shall have an initial public offering of its shares prior to the
Company, then this definition shall apply to the offering by such subsidiary instead). Such company
as is the subject of the IPO shall be referred to as “Listco” herein.

“Listco” shall have the meaning set out in the definition of “IPO”.

“PRC” means the People’s Republic of China excluding, for the purpose of this Agreement, Hong Kong
Special Administrative Region and Macau Special Administrative Region and Taiwan.

“RMB” means Renminbi, the lawful currency of the PRC.

“Shares” means the issued share capital of the Company.

“Subscribed Shares” means the common shares of the Listco to be issued or procured to be issued by
the Company to the Subscriber, being the Tranche A Shares, the Tranche B Shares and/or the Tranche
C Shares.

“Share Transfer Price” means the “” as set out in the Article 2.1 of the Equity
Transfer Agreement.

“Total Consideration” means the Subscribed Shares or Cash Payment, with the Share Transfer Price
being included.

“Tranche A Completion” means the completion of the issue and allotment of the Tranche A Shares (if
any) in accordance with this Agreement.

“Tranche B Completion” means the completion of the issue and allotment of the Tranche B Shares (if
any) in accordance with this Agreement.

“Tranche C Completion” means the completion of the issue and allotment of the Tranche C Shares (if
any) in accordance with this Agreement.

4

 

Subscription Agreement

“Cash Payment” means any cash payment to be made by the Company to the Subscribers pursuant to
Article 2 of this Agreement, being the Tranche A Cash Payment Payment, the Tranche B and/or
the Tranche C Cash Payment.

“Tranche A Completion Date” means 15 days after the fulfillment of the last condition precedent
under Section 2.4 or any other date agreed by the Company and the Subscriber in writing.

“Tranche B Completion Date” means 15 days after the fulfillment of the last condition precedent
under Section 2.5 or any other date agreed by the Company and the Subscriber in writing.

“Tranche C Completion Date” means 15 days after the fulfillment of the last condition precedent
under Section 2.6 or any other date agreed by the Company and the Subscriber in writing.

“Tranche
A Shares” means the Shares (if any) to be subscribed by the Subscriber pursuant to 
Section 2.2(a)(i) of this Agreement.

“Tranche
B Shares” means the Shares (if any) to be subscribed by the Subscriber pursuant to 
Section 2.2(a)(ii) of this Agreement.

“Tranche
C Shares” means the Shares (if any) to be subscribed by the Subscriber pursuant to 
Section 2.2(a)(iii) of this Agreement.

“Tranche A Cash Payment” means the cash payment to be made to the Subscriber (if any) pursuant
to Seciton 2.2(b)(i) of this Agreement.

“Tranche B Cash Payment” means the cash payment to be made to the Subscriber (if any) pursuant
to Section 2.2(b)(ii) of this Agreement.

“Tranche C Cash Payment” means the cash payment to be made to the Subscriber (if any) pursuant
to Section 2.2(b)(iii) of this Agreement.

“USD” means US dollars, the lawful currency of the United States of America.

“US GAAP” means the general accepted accounting principles established by the Financial Accounting
Standards Board of the United States of America as amended from time to time.

5

 

Subscription Agreement

Section 1.2 Other Terms Other terms may be defined elsewhere in the text of this Agreement
and, unless otherwise indicated, shall have such meaning indicated throughout this Agreement.

Section 1.3 General interpretation

Unless the contrary intention appears or otherwise defined, in this Agreement:

	(a)	 	(Articles, Sections, clauses, annexures and schedules) an Article, Section, clause, annexure
or schedule means a reference to a clause in or annexure or schedule to this Agreement;
	 
	(b)	 	(variations or replacement) a document (including this Agreement) includes any variation or
replacement of it;
	 
	(c)	 	(reference to statutes) a statute, ordinance, code or other law includes regulations and
other instruments under it and consolidations, amendments, re-enactments or replacements of
any of them;
	 
	(d)	 	(law) means common law, principles of equity, and statutes;
	 
	(e)	 	(singular includes plural) the singular includes the plural and vice versa;
	 
	(f)	 	(person) the word “person” includes an individual, a firm, a corporation, a partnership, a
joint venture, an unincorporated body or association or any government agency;
	 
	(g)	 	(executors, administrators, successors) a particular person includes a reference to the
person’s executors, administrators, successors, substitutes (including persons taking by
novation) and assigns;
	 
	(h)	 	(two or more persons) an agreement, representation or warranty in favor of two or more
persons is for the benefit of them jointly and each of them individually;
	 
	(i)	 	(jointly and severally) an agreement, representation or warranty by two or more persons binds
them jointly and each of them individually;
	 
	(j)	 	(calculation of time) if a period of time dates from a given day or the day of an act or
event, it is to be calculated exclusive of that day;
	 
	(k)	 	(reference to a day) a day is to be interpreted as the period of time commencing at midnight
and ending 24 hours later on any Business Day;

6

 

Subscription Agreement

	(l)	 	(reference to a group of persons) a group of persons or things is a reference to any two or
more of them jointly and to each of them individually;
	 
	(m)	 	(meaning not limited) the words “include”, “including”, “for example” or “such as” are not
used as, nor is it to be interpreted as, a word of limitation and when introducing an example,
do not limit the meaning of the words to which the example relates to that example or examples
of a similar kind.

Section 1.4 Headings

Headings (including those in brackets at the beginning of paragraphs) are for convenience only and
do not affect the interpretation of this Agreement.

ARTICLE 2 Subscription of the Subscribed Shares

Section 2.1 Issuance of the Subscribed Shares or the Cash Payment

As the inducement for the Subscribers to enter into this Agreement and in consideration of the
undertakings of the Subscriber described in Section 2.3, the Company agrees to issue and allot or
procure the issuance and allotment of the Subscribed Shares or make the Cash Payment to the
Subscriber (as the case may be) on the terms and conditions of this Agreement in 7 working days
after last year’s auditing report is issued.

Section 2.2 Determination of Consideration

	(a)	 	if the IPO occurs on or before 31 December 2008 then the Subscriber shall be entitled to the
following number of Tranche A Shares, Tranche B Shares and Tranche C Shares:

	 	(i)	 	Tranche A

	 	 	 	 	 	 	 
	X

	 	=
	 	A x C x 40% x D-E	 	 
	 

	 	 	 	 
B
	 	 

	 	 	Where:
	 
	 	 	X = 	the number of the Tranche A Shares
	 
	 	 	A = 	the audited net profit of Alliance Online for the year ended 31st
December 2008 calculated in accordance with US GAAP. (“Alliance
Online 2008

7

 

Subscription Agreement

	 	 	 	Net Profit”),
	 	 	B = 	the opening price per share of Listco at the IPO
	 
	 	 	C = 	the average of the daily forward price earnings ratio (P/E) of
Listco as shown on the Nasdaq website for the ten trading days immediately
following the IPO (or if Listco is not listed on NASDAQ, then the same shall be
calculated in accordance with such other index as is reasonably determined by
the Board of the Company).
	 
	 	 	D = 	60%
	 
	 	 	E = 	the Share Transfer Price (“”) as referred to in the
Article 2.1 of the Equity Transfer Agreement(“”).

	 	(ii)	 	Tranche B

	 	 	 	 	 	 	 
	X =

	 	
	 	A x C x 40% x D	 	 
	 	 	 	 
B
	 	 

	 	 	Where:
	 
	 	 	X = 	the number of the Tranche B Shares
	 
	 	 	A = 	the net profit of Alliance Online for the year end
31st December 2009 calculated in accordance with US GAAP (“Alliance
Online 2009 Net Profit”),
	 
	 	 	B = 	the average of the closing price per share of Listco for the
ten trading days after the adoption of the Alliance Online audited accounts for
the financial year ended 31st December 2009 .
	 
	 	 	C = 	the average of the daily forward price earnings ratio (P/E) of
Listco for the ten trading days after the adoption of the Alliance Online
audited accounts for the financial year ended 31st December 2009 as
shown on the Nasdaq website (or if Listco is not listed on NASDAQ, then the same
shall be calculated in accordance with such other index as is reasonably
determined by the Board).
	 
	 	 	D = 	60%

	 	(iii)	 	Tranche C

	 	 	 	 	 	 	 
	X

	 	=
	 	A x C x 20% x D	 	 
	 	 	 
B
	 	 

8

 

Subscription Agreement

	 	 	Where:
	 
	 	 	X = 	the number of the Tranche C Shares
	 
	 	 	A = 	the net profit of Alliance Online for the year end
31st December 2010 calculated in accordance with US GAAP (“Alliance
Online 2010 Net Profit”),
	 
	 	 	B = 	the average of the closing price per share of Listco for the
ten trading days after the adoption of the Alliance Online audited accounts for
the financial year ended 31st December 2010 .
	 
	 	 	C = 	the average of the daily forward price earnings ratio (P/E) of
Listco for the ten trading days after the adoption of the Alliance Online
audited accounts for the financial year ended 31st December 2010 as
shown on the Nasdaq website (or if Listco is not listed on NASDAQ, then the same
shall be calculated in accordance with such other index as is reasonably
determined by the Board).
	 
	 	 	D = 	60%

	(b)	 	if the IPO occurs after 31 December 2008 and before 31 December 2009 then the Subscriber
shall be entitled to the following number of Tranche A Cash, Tranche B Shares and Tranche C
Shares:

	 	(i)	 	Tranche A
	 
	 	 	 	if the Alliance Online 2008 Net Profit is more than zero then the Subscriber shall
receive the Tranche A Cash Payment as follows:-

	 	 	= 7 x A x 40%-E
	 
	 	 	Where:
	 
	 	 	A = 	the Alliance Online 2008 Net Profit
	 
	 	 	E = 	the Share Transfer Price (“”) as referred to in the Article 2.1 of the
Equity Transfer Agreement(“”).

	 	 	 	if the Alliance Online 2008 Net Profit is zero or less than zero then the Subscriber shall
receive 8,000 USD as the Tranche A Cash Payment;
	 
	 	(ii)	 	Tranche B

9

 

Subscription Agreement

	 	 	 	 	 	 	 
	X

	 	=
	 	A x C x 40% x D	 	 
	 	 	 
B
	 	 

	 	 	Where:
	 
	 	 	X = 	the number of the Tranche B Shares
	 
	 	 	A = 	the net profit of Alliance Online for the year end
31st December 2009 calculated in accordance with US GAAP (“Alliance
Online 2009 Net Profit”),
	 
	 	 	B = 	the average of the closing price per share of Listco for the
ten trading days after the adoption of the Alliance Online audited accounts for
the financial year ended 31st December 2009 .
	 
	 	 	C = 	the average of the daily forward price earnings ratio (P/E) of
Listco for the ten trading days after the adoption of the Alliance Online
audited accounts for the financial year ended 31st December 2009 as
shown on the Nasdaq website (or if Listco is not listed on NASDAQ, then the same
shall be calculated in accordance with such other index as is reasonably
determined by the Board).
	 
	 	 	D = 	60%

	 	(iii)	 	Tranche C

	 	 	 	 	 	 	 
	X

	 	=
	 	A x C x 20% x D
	 	 
	 	 	 	 	 
	 	 	B	 	 

	 	 	Where:
	 
	 	 	X = 	the number of the Tranche C Shares
	 
	 	 	A = 	the net profit of Alliance Online for the year end
31st December 2010 calculated in accordance with US GAAP (“Alliance
Online 2010 Net Profit”),
	 
	 	 	B = 	the average of the closing price per share of Listco for the
ten trading days after the adoption of the Alliance Online audited accounts for
the financial year ended 31st December 2010 .
	 
	 	 	C = 	the average of the daily forward price earnings ratio (P/E) of
Listco for the ten trading days after the adoption of the Alliance Online
audited accounts for the financial year ended 31st December 2010 as
shown on the Nasdaq website (or if Listco is not listed on NASDAQ, then the same
shall be

10

 

Subscription Agreement

	 	 	 	calculated in accordance with such other index as is reasonably determined by
the Board).
	 
	 	 	D = 	60%

	(c)	 	if the IPO occurs after 31 December 2009 and before 31 December 2010 then the Subscriber
shall be entitled to the following number of Tranche A Cash, Tranche B Cash and Tranche C
Shares:

	 	(i)	 	Tranche A
	 
	 	 	 	if the Alliance Online 2008 Net Profit is more than zero then the Subscriber shall
receive the Tranche A Cash Payment as follows:

	 	 	= 7 x A x 40%-E
	 
	 	 	Where:
	 
	 	 	A = 	the Alliance Online 2008 Net Profit
	 
	 	 	E = 	the Share Transfer Price (“”) as referred to in the Article 2.1 of the
Equity Transfer Agreement(“”).

	 	 	 	if the Alliance Online 2008 Net Profit is zero or less than zero then the Subscriber shall
receive 8,000 USD as the Tranche A Cash Payment;
	 
	 	(ii)	 	Tranche B
	 
	 	 	 	if the Alliance Online 2009 Net Profit is more than zero then the Subscriber shall receive
the Tranche B Cash Payment calculated as follows:

	 	 	= 7 x A x 40%
	 
	 	 	Where:
	 
	 	 	A = 	the Alliance Online 2009 Net Profit

	 	 	 	if the Alliance Online 2009 Net Profit is zero or less than zero then the Subscriber shall
receive 8,000 USD as the Tranche B Cash Payment;

	 	(iii)	 	Tranche C

11

 

Subscription Agreement

	 	 	 	 	 	 	 
	X

	 	=
	 	A x C x 20% x D	 	 
	 	 	 
B
	 	 

	 	 	Where:
	 
	 	 	X = 	the number of the Tranche C Shares
	 
	 	 	A = 	the net profit of Alliance Online for the year end
31st December 2010 calculated in accordance with US GAAP (“Alliance
Online 2010 Net Profit”),
	 
	 	 	B = 	the average of the closing price per share of Listco for the
ten trading days after the adoption of the Alliance Online audited accounts for
the financial year ended 31st December 2010 .
	 
	 	 	C = 	the average of the daily forward price earnings ratio (P/E) of
Listco for the ten trading days after the adoption of the Alliance Online
audited accounts for the financial year ended 31st December 2010 as
shown on the Nasdaq website (or if Listco is not listed on NASDAQ, then the same
shall be calculated in accordance with such other index as is reasonably
determined by the Board).
	 
	 	 	D = 	60%

	(d)	 	if the IPO does not occur on or before 31 December 2010 then

(i). if the Alliance Online 2008 Net Profit is more than zero then the Subscriber
shall receive the Tranche A Cash Payment as follows:-

	 	 	= 7 x A x 40%-E
	 
	 	 	Where:
	 
	 	 	A = 	the Alliance Online 2008 Net Profit
	 
	 	 	E = 	the Share Transfer Price (“”) as referred to in the Article 2.1 of the
Equity Transfer Agreement(“”).

if the Alliance Online 2008 Net Profit is zero or less than zero then the Subscriber
shall receive 8,000 USD as the Tranche A Cash Payment;

(ii). if the Alliance Online 2009 Net Profit is more than zero then the Subscriber
shall receive the Tranche B Cash Payment calculated as follows:

12

 

Subscription Agreement

	 	 	= 7 x A x 40%
	 
	 	 	Where:
	 
	 	 	A = 	the Alliance Online 2009 Net Profit

if the Alliance Online 2009 Net Profit is zero or less than zero then the Subscriber
shall receive 8,000 USD as the Tranche B Cash Payment;

(iii). if the Alliance Online 2010 Net Profit is more than zero then the Subscriber shall
receive the Tranche C Cash Payment calculated as follows:

	 	 	= 7 x A x 20%
	 
	 	 	Where:
	 
	 	 	A = 	the Alliance Online 2010 Net Profit

if the Alliance Online 2010 Net Profit is zero or less than zero then the Subscriber
shall receive 4,000 USD as the Tranche C Cash Payment.

In addition to the considerations set forth in Section 2.1 and Section 2.2, the subscriber is
entitled to the lesser of (1) the balance of retained earnings account or (2) the cash balance, as
of Jan. 31st, 2008.

Section 2.3 Consideration for the Subscribed Shares

In consideration for the Company’s issuance and allotment or procurance of issuance & allotment of
the Subscribed Shares or making the Cash Payment the Subscriber undertakes to the Company not to
compete with the Company in any way (“Non-Competition Undertaking”) after the effectiveness of the
Equity Transfer Agreement. The Non-Competition Undertaking includes, without limitation,
competition effected by setting up joint venture or partnership, by recruiting employees of the
Company and its subsidiaries, by contract arrangement, or by provision of funds, for a period
starting from the date of this Agreement and ending on December 31, 2011. The corresponding
non-competition agreement shall be executed in a mutually satisfactory form for the Parties.

Section 2.4 Conditions to the Tranche A Completion

13

 

Subscription Agreement

The Company’s obligation to issue or procure the issue of the Tranche A Shares or make the Tranche
A Cash Payment at the Tranche A Completion is also subject to the fulfilment of the following
conditions:

	(a)	 	(Successful IPO ) Listco has successfully carried out an IPO on or before 31st
December 2008 (and subject to the satisfaction of other conditions, the Tranche A Shares will
be issued within 60 days from the effective date of IPO). Where the Company shall make the
Tranche A Cash Payment, then this condition doesn’t apply.
	 
	(b)	 	(Audit on Alliance Online for the Year 2008) the financial statements of Alliance Online
corresponding to the year 2008 have been audited, in accordance with the US GAAP, by the
accounting firm designated by the Company. The audit shall occur and be completed within the
first 6 calendar months of 2009.
	 
	(c)	 	(Shareholders’ approval) the shareholders of the Company (in respect of both common Shares
and preferred shares) have approved or consented to the issue of the Tranche A Shares or
making the Tranche A Cash Payment (as the case may be).
	 
	(d)	 	(Board approval) the board of directors of the Company has duly approved the issue of the
Tranche A Shares or the making of the Tranche A Cash Payment .
	 
	(e)	 	(Governmental approvals) if legally required, the Subscriber shall have used her reasonable
endeavors to obtain all necessary PRC governmental approvals for the subscription of the
Tranche A Shares and produced the approval documents to the Company in case the Company should
issue the Tranche A Shares.
	 
	(f)	 	(Completion of Equity Transfer) the equity transfer under the Equity Transfer Agreement has
been completed, as evidenced by PRC REDGATE () being registered as the sole
shareholder of Alliance Online and representatives of PRC REDGATE () being appointed
to be all of the directors of Alliance Online.
	 
	(g)	 	(Representations and Warranties) the representations and warranties of the Subscriber under
Section 6.1 of this Agreement and the representations and warranties of the Subscriber
under Article 3 and Schedule 3 of the Equity Transfer Agreement shall be true and
correct as of the Tranche A Completion Date in all material respects, and the Subscriber shall
have performed and complied in all material respects with all covenants required by this
Agreement to be performed or complied with by them prior to the Tranche A Completion Date.

14

 

Subscription Agreement

Section 2.5 Conditions to the Tranche B Completion

The Company’s obligation to issue or procure the issue of the Tranche B Shares or make the Tranche
B Cash Payment (as the case may be) at the Tranche B Completion is also subject to the fulfilment
of the following conditions (the Tranche B Completion will be effected within two weeks after the
completion of the Audit on Alliance Online for the Year 2009 if all the following conditions having
been satisfied):

(a) (Successful IPO if applicable) Listco has successfully carried out an IPO on or before
31st December 2008 . Where the Company shall make the Tranche B Cash Payment, then
this condition doesn’t apply.

(b) (Audit on Alliance Online for the Year 2009) the financial statements of Alliance Online
corresponding to the year 2009 have been audited, in accordance with the US GAAP, by the
accounting firm designated by the Company. The audit shall occur and be completed within the
first 6 calendar months of 2010.

(c) (Shareholders’ approval) the shareholders of the Company (in respect of both Shares and
preferred shares) have approved or consented to the issue of the Tranche B Shares or make the
Tranche B Cash Payment.

(d) (Board approval) the board of directors of the Company has duly approved the issue of the
Tranche B Shares or make the Tranche B Cash Payment.

(e) (Governmental approvals) if legally required, the Subscriber shall have used her reasonable
endeavors to obtain all necessary PRC governmental approvals for the subscription of the
Tranche B Shares and produced the approval documents to the Company in case the Company should
issue Tranche B Shares.

(f) (Representations and Warranties) the representations and warranties of the Subscriber under
Section 6.1 of this Agreement and the representations and warranties of the Subscriber
under Article 3 and Schedule 3 of the Equity Transfer Agreement shall be true and
correct as of the Tranche B Completion Date in all material respects, and the Subscriber shall
have performed and complied in all material respects with all covenants required by this
Agreement to be performed or complied with by them prior to the Tranche B Completion Date.

(g) Alliance Online’s net earning in 2009 is not less than that in 2008.

Section 2.6 Conditions to the Tranche C Completion

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Subscription Agreement

The Company’s obligation to issue or procure the issue of the Tranche C Shares or make the Tranche
C Cash Payment (as the case may be) at the Tranche C Completion is also subject to the fulfilment
of the following conditions (the Tranche C Completion will be effected within two weeks after the
completion of the Audit on Alliance Online for the Year 2010 if all the following conditions having
been satisfied):

(a) (Successful IPO if applicable) Listco has successfully carried out an IPO on or before
31st December 2008 . Where the Company shall make the Tranche C Cash Payment, then
this condition doesn’t apply.

(b) (Audit on Alliance Online for the Year 2010) the financial statements of Alliance Online
corresponding to the year 2010 have been audited, in accordance with the US GAAP, by the
accounting firm designated by the Company. The audit shall occur and be completed within the
first 6 calendar months of 2011.

(c) (Shareholders’ approval) the shareholders of the Company (in respect of both Shares and
preferred shares) have approved or consented to the issue of the Tranche C Shares or make the
Tranche C Cash Payment.

(d) (Board approval) the board of directors of the Company has duly approved the issue of the
Tranche C Shares or make the Tranche C Cash Payment.

(e) (Governmental approvals) if legally required, the Subscriber shall have used her reasonable
endeavors to obtain all necessary PRC governmental approvals for the subscription of the
Tranche C Shares and produced the approval documents to the Company in case the Company should
issue Tranche C Shares.

(f) (Representations and Warranties) the representations and warranties of the Subscriber under
Section 6.1 of this Agreement and the representations and warranties of the Subscriber under
Article 3 and Schedule 3 of the Equity Transfer Agreement shall be true and correct as of the
Tranche C Completion Date in all material respects, and the Subscriber shall have performed
and complied in all material respects with all covenants required by this Agreement to be
performed or complied with by them prior to the Tranche C Completion Date.

(g) Alliance Online’s net earning in 2010 is not less than that in 2009.

Section 2.7 Adjustment of Consideration

If Alliance online’s net earning in 2009 is less than that in 2008, “D” used in section 2.2 will be
discounted accordingly.

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For example,

if net earning in 2009 is RMB 3M, and net earning in 2008 is 4M, “D” will be changed from 60% to
(3M / 4M) x 60% = 45%

if net earning in 2010 is RMB 3M, and net earning in 2009 is 4M, “D” will be changed from 60% to
(3M / 4M) x 60% = 45%

Section 2.8 Reasonable Endeavors

Each Party must use its reasonable endeavours to obtain the fulfilment of the conditions precedent
as described under this Article 2, including procuring performance by a third party. The
Parties must keep each other informed of any circumstances which may result in any condition
precedent under this Article 2 not being satisfied in accordance with its terms hereof.

ARTICLE 3 Completion

Section 3.1 Time and Place of Completion

Tranche A Completion will take place at 11am on the Tranche A Completion Date at No.5 room,F8,CITIC
Building or any other time and place agreed by the Company and the Subscriber.

Tranche B Completion will take place at 11am on the Tranche B Completion Date at No.5 room,F8,CITIC
Building or any other time and place agreed by the Company and the Subscriber.

Tranche C Completion will take place at 11am on the Tranche B Completion Date at No.5 room,F8,CITIC
Building or any other time and place agreed by the Company and the Subscriber.

Section 3.2 Subscriber’s Obligations at Completion

Unless otherwise waived in writing by the Company, at Tranche A Completion Date, the Subscriber
agrees to deliver to the Company the evidence that PRC REDGATE
() has been registered as
the sole shareholder of Alliance Online, as well as other evidence of

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satisfaction of the conditions to be performed by the Subscriber before Tranche A Completion.

Unless otherwise waived in writing by the Company, at Tranche B Completion Date, the Subscriber
agrees to deliver to the Company all evidence required by the Company showing the satisfaction of
the conditions to be performed by the Subscriber before Tranche B Completion have been satisfied.

Unless otherwise waived in writing by the Company, at Tranche C Completion Date, the Subscriber
agrees to deliver to the Company all evidence required by the Company showing the satisfaction of
the conditions to be performed by the Subscriber before Tranche B Completion have been satisfied.

Section 3.3 Company’s Obligations at Completion

Unless otherwise waived in writing by the Subscriber, at Tranche A Completion, Tranche B Completion
and Tranche C Completion, the Company agrees (as the case may be) to: make the Cash Payment or fax
an instruction to the Company’s registered agent to issue the Tranche A Shares, Tranche B Shares
and Tranche C Shares to the Subscriber together with the Company’s board resolutions approving the
respective issue. In cases of share issues, the Company shall deliver the share certificate for the
Tranche A Shares, Tranche B Shares and Tranche C Shares to the Subscriber within ten Business Days
after the Tranche A Completion, Tranche B Completion and Tranche C Completion, respectively.

Section 3.4 Simultaneous Actions at the Completion

In respect of the Completion:

(a) The obligations of the Parties under this Agreement are interdependent; and

(b) All actions required to be performed for the Completion will be deemed to have occurred
simultaneously at the Tranche A Completion, Tranche B Completion and Tranche C Completion
respectively.

ARTICLE 4 Special Covenants

Section 4.1 Extension of financial facilities by the Company

The Company or its subsidiary will extend financial facilities to Alliance Online to develop its
business at the Company’s consideration and discretion.

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Section 4.2 Covenants before Tranche C Completion

Except as required by this Agreement or Equity Transfer Agreement, no resolution of the directors
of Alliance Online shall be passed, nor shall any contract or commitment be entered into, in each
case, prior to the Tranche C Completion without the prior written consent of the Company or PRC
REDGATE (), except that Alliance Online may carry on its business in due course and may
pass board resolutions and enter into contracts for so long as they are effected in the ordinary
course of business and the company is informed of the same. As management person of Alliance
Online, the Subscriber shall manage the operation of Alliance Online in good faith.

The Subscriber shall indemnify the Company or its affiliated companies against all losses incurred
by the act or default by Alliance Online or the Subscriber if any before the Tranche C Completion.

ARTICLE 5 Company’s Warranties

Section 5.1 Accuracy of Statements

The Company represents and warrants to the Subscriber that each of the following statements is
true, accurate, and not misleading in any material respect with respect to the subject covered
therein as of the date of this Agreement and will be true, accurate, and not misleading in any
material respect at each of the Tranche A Completion Date, the Tranche B Completion Date and the
Tranche C Completion Date:

(a) (Organization, Good Standing and Qualification) The Company is duly organized, validly
existing and in good standing under, and by virtue of, the laws of the place of its
incorporation or establishment and has all required power and authority to own its properties
and assets and to carry on its business as now conducted and as presently proposed to be
conducted;

(b) (Power) It has the power to enter into and perform this Agreement and has obtained all
necessary consents and authorizations to enable it to do so;

(c) (Binding Obligation) This Agreement constitutes valid and binding obligations upon the
Company and is enforceable in accordance with its terms upon the Company, subject, as to
enforcement of remedies, to applicable bankruptcy, insolvency, moratorium, reorganization and
similar laws affecting creditors’ rights generally and to general equitable principles;

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Subscription Agreement

(d) (No Breach) This Agreement and Completions do not conflict with or result in a breach of any
obligation (including any statutory, contractual or fiduciary obligation) or constitute or
result in any default under any provision of its constitution or any material provision of any
agreement, deed, writ, order, injunction, judgment, law, rule or regulation to which it is a
party or is subject or by which it is bound;

(e) (No Litigation; No Material Change) No action shall have been threatened or instituted
against the Company seeking to enjoin, or challenge the validity of, or assert any liability
against the Company. There shall be no material adverse change to the business operation of
the Company;

(f) (No Creditors Arrangement) No voluntary arrangement has been proposed or reached with any
creditors of the Company;

(g) (Solvency) The Company is able to pay its debts as and when they fall due.

Section 5.2 Separate Warranties

Each warranty is to be treated as a separate representation and warranty. The interpretation of any
statement made may not be restricted by reference to or inference from any other statement.

ARTICLE 6 Subscriber’s Warranties

Section 6.1 Accuracy of Statements

The Subscriber represents and warrants to the Company that each of the following statements is true
and accurate and not misleading in any material respect on the date of this agreement and will be
true and accurate and not misleading in any material respect as at the Tranche A Completion Date,
Tranche B Completion Date and Tranche C Completion Date as if made on each of those dates:

(a) (Power) The Subscriber has the power to enter into and perform this Agreement and has
obtained all necessary consents and authorizations to enable it to do so;

(b) (Binding Obligation) This Agreement constitute valid and binding obligations upon the
Subscriber and is enforceable in accordance with its terms upon the Subscriber;

(c) (Compliance with Laws) It is not required to obtain any consents or approvals from, or file a
record with, any third party or government authority in connection with subscription of the
Subscribed Shares.

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Subscription Agreement

Section 6.2 Separate Warranties

Each warranty is to be treated as a separate representation and warranty. The interpretation of
any statement made may not be restricted by reference to or inference from any other statement.

Section 6.3 Agreement

The Subscriber agrees to be bound by all the terms and provisions of the memorandum and articles of
association of the Company and any shareholders agreements in force between the shareholders of the
Company from time to time.

ARTICLE 7 Confidentiality

Section 7.1 Disclosure of Confidential Information

All Confidential Information exchanged between the Parties under this Agreement or during the
negotiations preceding this Agreement is confidential to them and may not be disclosed by the
recipient of such information to any person except:

(a) employees, legal advisers, auditors and other consultants of the Parties or its affiliated
entities requiring the information for the purposes of this Agreement;

(b) with the consent of the Party who supplied the information which consent may be given or
withheld in its absolute discretion;

(c) if a Party is required to do so by law or a stock exchange or any regulatory authority to
whom it is subject; or

(d) if a Party is required to do so in connection with legal proceedings relating to this
Agreement.

ARTICLE 8 Announcements

Section 8.1 Public Announcements

Subject to Section 8.2, neither Party may make or send a public announcement, communication
or circular concerning the transactions referred to in this Agreement unless it

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Subscription Agreement

has first obtained the other Party’s written consent, such consent not to be unreasonably withheld
or delayed.

Section 8.2 Public Announcements Required by Law

Section 8.1 does not apply to a public announcement, communication or circular required by
law or a regulation of a stock exchange, if the Party required to make or send it has, if
practicable, first consulted and taken into account the reasonable requirements of the other
Parties.

ARTICLE 9 Costs

Section 9.1 Costs and Expenses

The Parties agree to pay their own legal and other costs and expenses in connection with the
negotiation, preparation, execution and completion of this Agreement and of other related
documentation.

ARTICLE 10 Notices

Section 10.1 Form

Unless expressly stated otherwise in this Agreement, all notices, certificates, consents,
approvals, waivers and other communications in connection with this Agreement must be in writing,
signed by the sender (if an individual) or an authorised officer of the sender (if a company) and
marked for the attention of the person as follows: or, if the recipient has previously notified
otherwise, then marked for in the manner last notified by any Party to the other Parties.

Notices

	(a)	 	Any notice or other communication shall be deemed to have been served or delivered if sent to
the address, or facsimile number (as the case may be) set out in this paragraph (a) such
delivery or service being deemed at the following points in time namely:-

	 	(i)	 	if by facsimile at the time of despatch to the relevant number; or
	 
	 	(ii)	 	if by hand, when left at the relevant address; or

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Subscription Agreement

	 	(iii)	 	if by post, two Business Days after being put in the post properly addressed to the
relevant address with pre-paid postage,

provided that any notice or communication that is not dispatched on a Business Day shall be
deemed to have been dispatched on the immediately subsequent Business Day.

	(b)	 	For the purposes of notices under this Agreement the following addresses and facsimile
numbers shall be used for serving notices on named Parties (unless the Party to be served
shall have notified the Party serving the notice in advance and in writing of any change(s) to
the same):-

	 	 	 	SUBSCRIBER:
	 
	 	 	 	Alliance Online Advertising Co., Ltd.
	 
	 	 	 	Attention: Yang Qian
	 
	 	 	 	Address: No.23 Xidawang Street, Chaoyang District, Beijing, China
	 
	 	 	 	Fax: 010-58634084
	 
	 	 	 	PRC REDGATE ():
	 
	 	 	 	Attention: Zhu Ying
	 
	 	 	 	Address: 8/F CITIC Building B, No.19 Jianguomen wai Street, Chaoyang District, Beijing, China
	 
	 	 	 	Fax: 010-85263129
	 
	 	 	 	Company:
	 
	 	 	 	Address: Room 2703, 27th Floor, The Centrium, 60 Wyndham Street, Central, Hong Kong
	 
	 	 	 	Fax: (852) 8106 8655

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Subscription Agreement

ARTICLE 11 General Provisions

Section 11.1 Discretion in Exercising Rights

A Party may exercise a right or remedy or give or refuse its consent in any way it considers
appropriate (including by imposing conditions), unless this Agreement expressly states otherwise.

Section 11.2 Partial Exercising of Rights

If a Party does not exercise a right or remedy fully at any given time, the Party may still
exercise the same at a later date.

Section 11.3 Approvals and Consents

A Party may give conditional or unconditional or withhold its approval or consent in its absolute
discretion unless this Agreement expressly provides otherwise. By giving its approval or consent a
Party does not make or give any warranty or representation as to any circumstance relating to the
subject matter of the consent or approval.

Section 11.4 Remedies Cumulative

The rights and remedies provided in this Agreement are in addition to other rights and remedies
given by law independently of this Agreement.

Section 11.5 Variation and Waiver

The Agreement and/or any rights herein, may not be waived or varied except in writing, signed by
the Parties hereto.

Section 11.6 No merger

The warranties, undertakings and indemnities in this Agreement shall survive the Tranche A
Completion and the Tranche B Completion.

Section 11.7 Indemnities

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Subscription Agreement

The indemnities in this Agreement are continuing obligations, independent from the other
obligations of the Parties under this Agreement and continue after this Agreement ends. It is not
necessary for a Party to incur expense or make payment before enforcing a right of indemnity under
this Agreement.

Section 11.8 Entire Agreement

This Agreement constitutes the entire agreement of the Parties about its subject matter and
supersedes all previous agreements, understandings and negotiations (whether written or oral)
between all or any of them in respect of the same. In the event of the Parties executing a Chinese
version of this Agreement then the English version shall prevail.

Section 11.9 Construction

No rule of construction applies to the disadvantage of a Party because that Party was responsible
for the preparation of, or seeks to rely on, this Agreement or any part of it.

ARTICLE 12 Governing Law and Dispute Resolution

Section 12.1 Governing law

This Agreement is governed by the laws of the Hong Kong Special Administrative Region of the PRC.

Section 12.2 Dispute Resolution

The Parties agree to negotiate in good faith to resolve any dispute or claim between them regarding
this Agreement. If the negotiations do not resolve the dispute or claim to the reasonable
satisfaction of Parties concerned, then each Party shall nominate one authorized senior officer as
its representative. The Parties or their representatives, as the case may be, shall, within thirty
(30) days of a written request by any Party to call such meeting, meet in person and attempt in
good faith to resolve the dispute or claim.

Each of the parties irrevocably agrees that in the event that any dispute or claim arising out or
relating to this Agreement or any breach thereof cannot be resolved as aforesaid then the sameshall
be settled by arbitration in accordance with the UNCITRAL Arbitration Rules in force at the time of
such dispute or claim, save as may be amended by the subsequent provisions of this Clause.

The place of arbitration shall be in Hong Kong at the Hong Kong International Arbitration

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Subscription Agreement

Centre and shall be conducted in the English language. There shall be a single arbitrator who
shall be agreed upon by the parties or, failing which, who shall be selected by the then President
of The Law Society of Hong Kong.

ARTICLE 13 Counterparts

This Agreement may consist of a number of copies, each signed by one or more Parties to this
Agreement. If so, the signed copies are treated as making up the one document and the date on
which the last counterpart is executed will be the date of this Agreement.

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Subscription Agreement

IN WITNESS WHEREOF, this Subscription Agreement has been signed on behalf of each of the Parties
hereto as of the date first written above.

	 	 	 	 	 
	Redgate Media Inc.

 	 	 
	By  	/s/ Peter Bush Brack
 	 	 
	 	Name:  	Brack, Peter Bush 	 	 
	 	Title:  	Chairman & CEO 	 	 
	 
	Redgate Media AD Co., Ltd.
(  )

 	 	 
	By  	/s/ Jin Yue
 	 	 
	 	Name:  	Jin Yue 	 	 
	 	Title:  	Board Chairman 	 	 
	 
	Yang Qian

 	 	 
	By  	/s/ Yang Qian
 	 	 
	 	 	 	 
	 	 	 	 
	 

27

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