Document:

EX-4.51 SHAREHOLDERS' AGREEMENT DEC 7, 2006

 

Exhibit 4.51

EXECUTION COPY

DATED
THE 7TH DAY OF  DECEMBER 2006

BETWEEN

MANAGEMENT CAPITAL INTERNATIONAL LTD

INFOCOMM INVESTMENTS PTE LTD

COMMERZBANK INFOCOMM SEGREGATED PORTFOLIO

GLOBAL STAR INTERNATIONAL DEVELOPMENT LIMITED

ETHERFAST PTE LTD

GIGAMEDIA ASIA PACIFIC LIMITED

AND

INFOCOMM ASIA HOLDINGS PTE. LTD.

 

SHAREHOLDERS’ AGREEMENT

 

9 Raffles Place

#32-00 Republic Plaza

Singapore 048619

Tel: (65) 6389 3000

Fax: (65) 6389 3099

www.stamfordlaw.com.sg

 

 

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TABLE OF CONTENTS

	 	 	 	 	 	 	 
	CLAUSE NO.	 	HEADING	 	PAGE NO.
	1.

	 	DEFINITIONS
	 	 	2	 
	 
	 	 	 	 	 	 
	2.

	 	SHARE CAPITAL AND ALLOTMENT OF SHARES
	 	 	6	 
	 
	 	 	 	 	 	 
	3.

	 	CONVERSION RIGHTS
	 	 	7	 
	 
	 	 	 	 	 	 
	4.

	 	ANTIDILUTION ADJUSTMENTS
	 	 	7	 
	 
	 	 	 	 	 	 
	5.

	 	REDEMPTION OF CLASS A SHARES
	 	 	8	 
	 
	 	 	 	 	 	 
	6.

	 	REDEMPTION OF CLASS B SHARES
	 	 	8	 
	 
	 	 	 	 	 	 
	6A.

	 	LIDUIDATION PREFERENCE
	 	 	8	 
	 
	 	 	 	 	 	 
	7.

	 	LISTING AND AUTOMATIC CONVERSION
	 	 	9	 
	 
	 	 	 	 	 	 
	8.

	 	BOARD OF DIRECTORS
	 	 	10	 
	 
	 	 	 	 	 	 
	9.

	 	GENERAL MEETINGS
	 	 	12	 
	 
	 	 	 	 	 	 
	10.

	 	BUSINESS OF THE COMPANY
	 	 	14	 
	 
	 	 	 	 	 	 
	11.

	 	FINANCE
	 	 	15	 
	 
	 	 	 	 	 	 
	12.

	 	MANAGEMENT, ACCOUNTS AND INFORMATION
	 	 	16	 
	 
	 	 	 	 	 	 
	13.

	 	TRANSFER OF SHARES
	 	 	17	 
	 
	 	 	 	 	 	 
	14.

	 	COMPULSORY TRANSFERS
	 	 	20	 
	 
	 	 	 	 	 	 
	15.

	 	TAG-ALONG RIGHTS
	 	 	22	 
	 
	 	 	 	 	 	 
	16.

	 	BRING ALONG RIGHTS
	 	 	23	 
	 
	 	 	 	 	 	 
	17.

	 	REGISTRATION RIGHTS
	 	 	23	 
	 
	 	 	 	 	 	 
	18

	 	DURATION AND TERMINATION
	 	 	27	 
	 
	 	 	 	 	 	 
	19.

	 	NON-COMPETITION AND OTHER RESTRICTIONS
	 	 	27	 
	 
	 	 	 	 	 	 
	20.

	 	REPRESENTATIONS AND WARRANTIES
	 	 	29	 
	 
	 	 	 	 	 	 
	21.

	 	FORCE MAJEURE
	 	 	30	 
	 
	 	 	 	 	 	 
	22.

	 	ARTICLES OF ASSOCIATION
	 	 	30	 
	 
	 	 	 	 	 	 
	23.

	 	CONFIDENTIALITY
	 	 	30	 
	 
	 	 	 	 	 	 
	24.

	 	CONTINUING EFFECTS OF THIS AGREEMENT
	 	 	31	 
	 
	 	 	 	 	 	 
	25.

	 	COUNTERPARTIES
	 	 	31	 
	 
	 	 	 	 	 	 
	26.

	 	NOTICES
	 	 	31	 
	 
	 	 	 	 	 	 
	27.

	 	MISCELLANEOUS
	 	 	32	 
	 
	 	 	 	 	 	 
	SCHEDULE 1	 	 	37	 

 

 

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THIS
AGREEMENT is made on the 7th day of December 2006

BETWEEN:

	(1)	 	Management Capital International Ltd, a company incorporated in the British Virgin Islands
and having its registered office at Portcullis Trustnet Chambers, P.O. Box 3444, Road Town,
Tortola, British Virgin Islands (“MCIL”);
	 
	(2)	 	Infocomm Investments Pte Ltd (Company Registration Number 199608120R), a company
incorporated in Singapore and having its registered office at 6 Temasek Boulevard #29-00
Suntec Tower 4 Singapore 038986 (“IIPL”);
	 
	(3)	 	Commerzbank Infocomm Segregated Portfolios, a specific segregated portfolio within Commerz
Asia Best SPC (Company Registration Number CB-142661), a segregated portfolio company
incorporated in the Cayman Islands and having its registered office at Coconut Villa 2
Jennifer Drive P.O. Box 10211 APO Grand Cayman BW1 (“CISP”);
	 
	(4)	 	Global Star International Development Limited (Company Registration Number 1032166), a
company which is a wholly owned subsidiary of The9 Limited and incorporated in Hong Kong
Special Administrative Region and having its registered office at 34/F, The Lee Gardens, 33
Hysan Avenue, Causeway Bay, Hong Kong (“Global Star”);
	 
	(5)	 	Etherfast Pte Ltd (Company Registration Number 200604316G), a company incorporated in
Singapore and having its registered office at 28 Maxwell Road Red Dot Traffic #04-01
Singapore 069120 (“Etherfast”); and
	 
	(6)	 	GigaMedia Asia Pacific Limited (IBC Number 1068168), a company incorporated in the British
Virgin Islands and having its registered office at Overseas Management Company Trust
(B.V.I.) Ltd., OMC Chambers, P.O. Box 3152, Road Town, Tortola, British Virgin Islands
(“GigaMedia”);

collectively referred to as “Shareholders”; and

	(7)	 	Infocomm Asia Holdings Pte. Ltd. (Company Registration Number 200414722H), a company
incorporated in Singapore and having its registered office at 28 Maxwell Road Red Dot
Traffic #04-01 Singapore 069120 (the “Company”),

all the parties above shall be referred to individually as a “Party” and collectively as the
“Parties”.

WHEREAS:

	(A)	 	The Company has been incorporated for the purpose of engaging in the Business (as defined
hereunder).
	 
	(B)	 	The shareholding structure of the Company as at the Completion Date, based on a fully
converted basis, will be as follows:

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	 	 	 	 	 	 	Number of Ordinary
	 	 	Type of Shares	 	Shares on a Converted
	Shareholder	 	held	 	Basis
	Management Capital International Limited
	 	Ordinary Shares	 	 	150,000	 
	Infocomm Investments Pte Ltd
	 	Class A Shares	 	 	300,000	 
	Commerzbank Infocomm Segregated
Portfolio
	 	Class A Shares	 	 	300,000	 
	Global Star International Development
Limited
	 	Class A Shares	 	 	200,000	 
	Gigamedia Limited
	 	Class B Shares	 	 	500,000	 
	 
	Total number of Shares
	 	 	 	 	 	 	1,450,000	 

	(C)	 	It is anticipated that Etherfast will subscribe for 100,000 new Ordinary Shares (as
defined below) to be issued by the Company, following which the shareholding structure of the
Company will be as follows:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number of Ordinary
	 	 	Type of Shares	 	Shares on a Converted
	Shareholder	 	held	 	Basis
	Management Capital International Limited
	 	Ordinary Shares	 	 	150,000	 
	Etherfast Pte Ltd
	 	Ordinary Shares	 	 	100,000	 
	Infocomm Investments Pte Ltd
	 	Class A Shares	 	 	300,000	 
	Commerzbank Infocomm Segregated
Portfolio
	 	Class A Shares	 	 	300,000	 
	Global Star International Development
Limited
	 	Class A Shares	 	 	200,000	 
	Gigamedia Limited
	 	Class B Shares	 	 	500,000	 
	 
	Total number of Shares
	 	 	 	 	 	 	1,550,000	 

	(D)	 	The parties hereto wish to enter into this Agreement to regulate the affairs of the
Company and the relationship between them as Shareholders of the Company.
	 
	(E)	 	It is understood that each of the parties have entered into this Agreement in reliance upon
the participation of other parties on the terms and subject to the conditions set out in this
Agreement.

NOW IT IS HEREBY AGREED as follows:

	1.	 	DEFINITIONS
	 
	1.1	 	In this Agreement unless the subject or context otherwise requires:
	 
	 	 	“Act” means the Companies Act, Chapter 50 of Singapore;
	 
	 	 	“Antidilution Exceptions” shall have the meaning ascribed under the clause 4 of this
Agreement;
	 
	 	 	“Applicable Securities Law” means (i) with respect to any offering of securities in the
United States of America, or any other act or omission within that jurisdiction, the
securities

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	 	 	law of the United States, as amended from time to time, including the Exchange Act and the
Securities Act, and any applicable law of any state of the United States of America, and
(ii) with respect to any offering of securities in any jurisdiction other than the United
States of America, or any related act or omission in that jurisdiction, the applicable laws
of that jurisdiction;
	 
	 	 	“Articles” means the Articles of Association of the Company, as amended to incorporate the
amendments set out in the Annex to the Subscription Agreement and as may be further amended
from time to time;
	 
	 	 	“Auditors” means such approved company auditors acceptable to the parties hereto as may at
the given time be the auditors of the Company;
	 
	 	 	“Board” means the board of Directors for the time being of the Company;
	 
	 	 	“Business” means the business to be carried on by the Company, including but not limited to
the operation and distribution of online games by way of securing the exclusive distribution
rights for online internet games or mobile games, for distribution in the South Asia region
and to make strategic investments in operating hubs;
	 
	 	 	“Business Day” means any day in Singapore except for Saturdays and Sundays and days which
have been gazetted as public holidays in Singapore;
	 
	 	 	“Chairman” means the Chairman of the Board and the Company;
	 
	 	 	“Class A Conversion Rate” means the ratio at which Class A Shares are converted into
Ordinary Shares which shall be ten (10) Class A Shares for one (1) Ordinary Share, subject
to such adjustments as may be made from time to time in accordance with this Agreement and
the Articles;
	 
	 	 	“Class A Issue Price” means US$1.00 for each Class A Share;
	 
	 	 	“Class A Shares” means such number of redeemable, convertible, preference shares in the
capital of the Company, each bearing the terms and conditions as set out in the Articles;
	 
	 	 	“Class B Conversion Rate” means the ratio at which Class B Shares are converted into
Ordinary Shares, which shall initially be one (1) Class B Share for one (1) Ordinary Share,
subject to such adjustments as may be made from time to time in accordance with this
Agreement and the Articles;
	 
	 	 	“Class B Issue Price” means US$20.00 for each Class B Share;
	 
	 	 	“Class B Shares” means such number of redeemable, convertible, preference shares in the
capital of the Company, each bearing the terms and conditions as set out in the Articles;
	 
	 	 	“Commission” means (i) with respect to any offering of securities in the United States of
America, the Securities and Exchange Commission of the United States of America or any other
federal agency at the time administering the Securities Act, and (ii) with respect to any
offering of securities in a jurisdiction other than the United States of America, the
relevant regulatory body of the jurisdiction with authority to supervise and regulate the
sale of securities in that jurisdiction;
	 
	 	 	“Completion Date” has the meaning ascribed to it by the Subscription Agreement;
	 
	 	 	“Conversion Rate” means the Class A Conversion Rate and the Class B Conversion Rate;

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	 	 	“Converted Basis” means such number of Ordinary Shares held as a result of the conversion of
Preference Shares into Ordinary Shares of the Company at the Class A Conversion Rate or the
Class B Conversion Rate (as the case may be), pursuant to the terms and conditions set out
in the relevant Subscription Agreements;
	 
	 	 	“CUSIP Number” means the number assigned to identify securities in the North
America as maintained by the Committee on Uniform Securities and Identification Procedures;
	 
	 	 	“Directors” means the proposed directors of the Company including, where applicable,
alternate directors and “Director” refers to any of them;
	 
	 	 	“Form F-3” means such form under the Securities Act as in effect on the date hereof or any
registration form under the Securities Act subsequently adopted by the Commission that
permits inclusion or incorporation of substantial information by reference to other
documents filed by the Company with the Commission. Form F-3, as applied in this Agreement,
could be either Form F-3, if the Company is deemed a foreign private issuer under the
Securities Exchange Act of 1934, as amended, or Form S-3, if the Company is deemed a
domestic issuer under such Act;
	 
	 	 	“Founder” means the shareholder(s) of MCIL as at the Completion Date;
	 
	 	 	“Holder” means the holders of Class B Shares;
	 
	 	 	“Initiating Holder” means a Shareholder holding at least 25% of the Registrable Securities
on a Converted Basis;
	 
	 	 	“Investment Budget” means the investment budget to be approved by the Investment Committee
that will be in line with the Use of Funds (as defined in the Subscription Agreement);
	 
	 	 	“Management” means the management team of the Company as set out in Schedule 1 of this
Agreement and such other persons who may from time to time be appointed as members to the
management team of the Company and who become shareholders of MCIL;
	 
	 	 	“net tangible asset value” means the total tangible assets value of the Company less total
liabilities (including deferred taxation), which is equal to the shareholders’ equity, which
comprises the following:

	 	(a)	 	the amount paid up or credited as paid up on the issued share capital of the
Company; and
	 
	 	(b)	 	the amounts standing to the credit of the reserves of the Company as recorded
in the accounts of the Company, howsoever described, including:

	 	(i)	 	any share premium account;
	 
	 	(ii)	 	any capital redemption reserve fund; and
	 
	 	(iii)	 	any amount standing to the credit of the profit and loss
account, all as shown by the accounts of the Company but after:

	 	(aa)	 	deducting therefrom (if not other deducted) any
amounts attributable to intangible assets including goodwill and the
amount of any debit balance on the profit and loss account in the
accounts of the Company; and

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	 	(bb)	 	making such other adjustments (if any) as the
Auditors consider appropriate in accordance with generally accepted
accounting principles;

	 	 	“Ordinary Shares” means the ordinary shares in the capital of the Company;
	 
	 	 	“Preference Shares” means the Class A Shares and the Class B Shares;
	 
	 	 	“Person” means any individual, body corporate, corporation, partnership, limited
partnership, proprietorship, association, limited liability company, trust, estate,
enterprise or other entity;
	 
	 	 	“Qualifying Buy-Back” means a share buy-back undertaken by the Company in accordance
with the applicable provisions of Singapore law;
	 
	 	 	“Registrable Securities” means the Ordinary Shares, including such Ordinary Shares issuable
upon the conversion of the Preference Shares;
	 
	 	 	“Registration” means a registration effected by preparing and filing a Registration
Statement and the declaration or ordering of the effectiveness of the Registration
Statement; and the terms “Register” and “Registered” have the same meanings concomitant with
the foregoing;
	 
	 	 	“Registration Statement” means a registration statement prepared on Form F-1, F-2 or F-3
under the Securities Act, or on any comparable form in connection with registration in a
jurisdiction other than the United States;
	 
	 	 	“Securities Act” means the United States Securities Act of 1933, as amended;
	 
	 	 	“Secretary” means the secretary for the time being of the Company;
	 
	 	 	“Shareholders” means IIPL, CISP, MCIL, Global Star, Etherfast and GigaMedia;
	 
	 	 	“Shareholder Proportions” means, in relation to a Shareholder, the proportion which the
number of Ordinary Shares (on a Converted Basis) set against the name of each Shareholder in
the tables as set out in Recitals B and C (the “Tables”), as the case may be, bears to the
total number of Ordinary Shares in the Company (on a Converted Basis) as set out in the
Tables, subject to changes in share capital of the Company as permitted by the terms and
conditions of this Agreement, the Subscription Agreement and the Articles;
	 
	 	 	“Shares” means the Class A Shares, the Class B Shares and the Ordinary Shares;
	 
	 	 	“South Asia Region” includes Singapore, Malaysia, Indonesia, Philippines, Thailand, Vietnam
and other territories as agreed by the Parties from time to time;
	 
	 	 	“S$” means the lawful currency of Singapore;
	 
	 	 	“US$” means the lawful currency of the United States of America;
	 
	 	 	“Use of Funds” has the meaning ascribed to it under clause 2.3 of the Subscription
Agreement; and
	 
	 	 	“WOW” means the massively multiplayer online role-playing game known as World of Warcraft.

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	1.2	 	In this Agreement:

	 	(a)	 	words importing the singular include the plural and vice versa;
	 
	 	(b)	 	words importing a gender include every gender; and
	 
	 	(c)	 	references to persons shall be construed as including references to an
individual, firm, company, corporation, trust, unincorporated body of persons or any
State or government or any agency thereof.

	1.3	 	Headings are for ease of reference only and have no legal effect. References to clauses are
to clauses of this Agreement.
	 
	1.4	 	Any reference to a statutory provision shall include such provision as from time to time
modified, amended or re-enacted so far as such modification, amendment or re-enactment applies
or is capable of applying to any transactions entered into hereunder.

	2.	 	SHARE CAPITAL AND ALLOTMENT OF SHARES
	 
	2.1	 	As at the Completion Date, the Company will have an issued share capital of 250,000 Ordinary
Shares, 8,000,000 Class A Shares, and 500,000 Class B Shares.
	 
	2.2	 	The Shareholders shall take such steps for the time being as lie within their power to
procure that save for a further 250,000 Class B Shares which may be issued within the period
of ten weeks after the Completion Date, the Company shall not issue any further shares whether
forming part of its unissued shares or new shares. Notwithstanding the foregoing, if the Board
determines in good faith and after due commercial considerations that additional shareholders’
equity is necessary, the Shareholders shall cause the Company to issue such number of
additional shares as the Board may recommend. Such additional shares shall be offered in the
first instance to holders of Preference Shares in proportion to their shareholdings (as
determined by their voting rights on a Converted Basis) in the Company immediately prior to
such proposed increase in the issued share capital of the Company and the holders of the
Preference Shares may elect to subscribe for such number of additional shares. In offering
such shares in the first instance to the holders of the Preference Shares, the offer shall be
made by written notice specifying the number of such additional shares offered and reasonably
limiting the time within which the offer, if not accepted, will be deemed to be declined
(which shall not be less than 21 Business Days) and after the expiration of that time or on
the receipt of an intimation from any Shareholder to whom the offer is made that it declines
to accept the additional shares offered, the other Shareholders shall be entitled to subscribe
to all such additional shares and if more than one other Shareholder desires to so subscribe,
then such additional shares will be allocated pro rata between them in the proportion that
their respective shareholdings in the Company bear to one another. Prior to the subscription
of any shares in the capital of the Company, each new shareholder of the Company shall execute
a deed of ratification and accession under which it agrees to be bound by and be entitled to
the benefit of this Agreement. Such right shall terminate at or upon a Public Offering
(hereinafter defined).
	 
	2.3	 	The foregoing right would not apply to:

	 	(a)	 	the issuance by the Company of Ordinary Shares (or any options or rights
convertible into Ordinary Shares) to employees, officers, directors or consultants of
the Company pursuant to share option plans or other share incentive arrangements
approved by the Board;

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	 	(b)	 	securities issued by the Company in connection with any merger or acquisition
event undertaken by the Company;
	 
	 	(c)	 	Ordinary Shares issued in connection with any subdivision, consolidation or
reclassification of Shares;
	 
	 	(d)	 	Ordinary Shares issued upon the conversion or automatic conversion of the
Preference Shares pursuant to clauses 3, 7.2 and 7.3 of this Agreement;
	 
	 	(e)	 	the issuance of equity securities pursuant to a public offering; or
	 
	 	(f)	 	the issuance of equity securities pursuant to an approved management incentive
plan.

	3.	 	CONVERSION RIGHTS
	 
	 	 	Each Holder shall be entitled, at any time after the Completion Date, at its option, to
convert all or any of the Class B Shares it holds into Ordinary Shares. Each Class B Share
shall be convertible into one Ordinary Share, subject to any adjustments provided in Clause
4 below and the Articles of the Company.

	4.	 	ANTIDILUTION ADJUSTMENTS

	4.1	 	Each of the Parties agrees to procure (insofar as it lawfully can), for so long as any Class
A Shares or Class B Shares are outstanding, that:

	 	(i)	 	in the event of a subdivision, consolidation or reclassification of shares, or
the issuance of Shares by way of a capitalisation of profits and reserves, all necessary
steps will be taken to ensure that the Shareholder Proportions in relation to the
Shareholders remain unchanged (“Proportional Antidilution Protection”), including,
without limiting the generality of the above, making such adjustments to the Conversion
Rate as may be necessary to maintain the Shareholder Proportions amongst the
Shareholders (“Antidilution Adjustments”); and
	 
	 	(ii)	 	in the event that the Company issues any additional Shares or rights or options
to subscribe for Shares (including by way of a rights issue), or any options, rights,
warrants or other securities convertible or exercisable into, or exchangeable for or
redeemable with any Shares in or assets of the Company at a price that is less than the
Class B Issue Price (the “New Issue Price”), the Class B Conversion Rate shall be
adjusted such that the number of Ordinary Shares arising from the conversion of each
Class B Share shall be equal to the Class B Issue Price divided by the New Issue Price.

	4.2	 	Notwithstanding clause 4.1, the following events (“Antidilution Exceptions”) will not trigger
an Antidilution Adjustment:

	 	(a)	 	the issue of Ordinary Shares upon conversion of any Preference Share pursuant
to the terms of this Agreement; and

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	 	(b)	 	Ordinary Shares and/or options that may be issued or registered for issuance to
employees pursuant to a share option plan or other share incentive plan approved by the
Board.

	5.	 	REDEMPTION OF CLASS A SHARES

	5.1	 	Upon receiving a written request from the holders of a majority of the Class A Shares at any
time after the fourth anniversary of 31 May 2005, the Company shall redeem the number of Class
A Shares submitted by such holders for redemption.
	 
	5.2	 	The redemption price for each Class A Share under this clause 5 shall be the Class A Issue
Price, plus interest accrued thereon at the rate of ten per cent (10%) per annum compounded
annually, less any declared and paid dividends (“Class A Redemption Amount”).

	6.	 	REDEMPTION OF CLASS B SHARES
	 
	6.1	 	The Holders shall have the right, at such holder’s option, to require the Company to redeem
in cash the Class B Shares which are not converted (1) on the fifth (5th)
anniversary of the issuance of the Class B Shares, or (2) upon the redemption of any Class A
Shares whichever is earlier, by way of a written request to the Company.
	 
	6.2	 	The redemption price per Class B Share shall be 100 per cent. of the Class B Issue Price,
plus interest accrued thereon at the rate of ten per cent (10%) on the Class B Issue Price per
annum compounded annually, less any declared and paid dividends thereon (the “Redemption
Amount”). In the case of a redemption triggered by the redemption of any Class A Shares, the
Holders shall be entitled to payment of the Premium Amount in priority to the holders of Class
A Shares, where:
	 
	 	 	Premium Amount = A + B
	 
	 	 	Where:
	 
	 	 	A = (Class B Issue Price – Class A Issue Price) x number of Class B Shares to
be redeemed;
	 
	 	 	B = interest accrued on the Class B Shares to be redeemed at the rate of 10% per annum
compounded annually less any declared and paid dividends on such Class B Shares;
	 
	 	 	The remaining Redemption Amount owing to the Holders will be paid to the Holders pari passu
with the Class A Redemption Amounts.
	 
	6.3	 	The Class B shareholders shall also be entitled, at their option, to require the Company to
redeem the Class B Shares within two (2) weeks of a change in Control of the Company. For the
purposes of this clause, “Control” shall mean the right to exercise, directly or indirectly,
more than 50 per cent of the voting rights attributable to the shares of the Company.

	6A.	 	 LIDUIDATION PREFERENCE
	 
	 	 	The Parties agree that in the event of any liquidation, dissolution or winding up of
the Company, or on a return of capital (other than a Qualifying Buy-Back) by the Company,
the holders of the Class B Shares shall be entitled to receive, prior to and in preference
to any distribution to the holders of Ordinary Shares, Class A Shares or any other class of
shares,

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	 	 	an amount equal to the price per Class B Share over the price paid per Class A Share,
plus all declared but unpaid dividends thereon (the “Preference Amount”). After the full
Preference Amount on all outstanding Class B Shares and the preference amount on the Class A
Shares have been paid, any remaining funds and assets of the Company shall be distributed
pro rata amongst the holders of the Shares on a Converted Basis.
	 
	 	 	If the Company has insufficient assets to permit payment of the Preference Amount in
full to all Holders, then the assets of the Company shall be distributed ratably to the
Holders in proportion to the Preference Amount each holder would otherwise be entitled to
receive.

	7.	 	LISTING AND AUTOMATIC CONVERSION
	 
	7.1	 	All the Shareholders agree that the Company shall seek a listing for its shares as soon as
practicable, once it achieves the IPO Targets (as defined below) set out herein.
	 
	7.2	 	All Class A Shares shall be automatically converted into Ordinary Shares, at the then
applicable Class A Conversion Rate, upon:

	 	(a)	 	the closing of an underwritten public offering of shares of the Company
(“Public Offering”) or such other date as may be agreed between the Parties and the
issue manager, at a public offering price per share which satisfies the IPO Targets as
defined in Clause 7.4 below and with a reasonably anticipated aggregate offering size
of at least US$15,000,000 (a “Qualified Public Offering” or “QPO”); or
	 
	 	(b)	 	the election of at least 70% of the Class A Shareholders.

	7.3	 	All Class B Shares shall be automatically converted into Ordinary Shares, at the then
applicable Class B Conversion Rate, upon:

	 	(a)	 	the closing of an underwritten public offering of shares of the Company
(“Public Offering”) or such other date as may be agreed between the Parties and the
issue manager, at a public offering price per share which satisfies the IPO Targets as
defined in Clause 7.4 below and with a reasonably anticipated aggregate offering size
of at least US$15,000,000 (a “Qualified Public Offering” or “QPO”); or
	 
	 	(b)	 	the election of at least 70% of the Class B Shareholders.

	7.4	 	For the purposes of this clause, unless otherwise agreed by the holders of no less than
seventy-five per cent (75%) of the Ordinary Shares on a fully converted basis and the holders
of no less than two-thirds of the Preference Shares, the targets for a Public Offering (the
“IPO Targets”) shall be:

	 	(a)	 	two times of the Class B Issue Price per Class B Share for a Public Offering
in 2007;
	 
	 	(b)	 	four times of the Class B Issue Price per Class B Share for a Public Offering
in 2008; or
	 
	 	(c)	 	eight times of the Class B Issue Price per Class B Share for a Public
Offering in 2009 or later.

	7.5	 	The Preference Shareholders may by written request to the Company at any time after a Public
Offering, require the Company to take all necessary steps and do all such things as may be
necessary to facilitate the sale or transfer or any other dealings of any Ordinary Shares
issued pursuant to a conversion of Preference Shares, including but without

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	 	 	limitation to the generality of the foregoing, making all necessary applications for such
Ordinary Shares to be listed on the exchange on which the Company’s Shares are listed.

	8.	 	BOARD OF DIRECTORS
	 
	8.1	 	Unless all the Shareholders otherwise agree in writing, the Board shall comprise five (5)
Directors of which one (1) Director will be nominated by IIPL, one (1) Director will be
nominated by CISP, one (1) Director will be nominated by Global Star, one (1) Director will be
nominated by the holders of Ordinary Shares and one (1) Director will be appointed by
GigaMedia.
	 
	8.2	 	The first Chairman shall be appointed by the Management and subsequent Chairmen shall be
appointed by a majority vote of the Board.
	 
	8.3	 	The right of appointment of the Directors conferred on the Shareholders shall include the
right at any time and from time to time to remove from office and to determine the period
which such persons shall hold office as Director. Whenever a Director ceases to be a Director
for any reason whatsoever, the party which appointed him shall be entitled to appoint another
person to replace him as a Director.
	 
	8.4	 	Any appointment or removal of Directors as aforesaid shall be made in writing and be signed
by the duly authorised officer of the appointor and shall take effect as from the date of its
receipt at the registered office of the Company or on the date of appointment specified in the
notice, whichever is later.
	 
	8.5	 	A Director may at any time and from time to time appoint any other person (other than another
Director) to be his alternate, and to remove such alternate Director. All appointments and
removals of alternate Directors made by any Director shall be in writing under the hand of the
Director making the same and shall take effect as of its receipt at the registered office of
the Company or on the date of appointment specified in the notice, whichever is the later.
Such alternate Director shall be entitled while holding office as such, to receive notices of
Board meetings and to attend and vote at any such Board meetings at which the Director
appointing him is not present and to exercise all the authorities, powers and rights and
perform all the functions of his appointer thereat.
	 
	8.6	 	The quorum for all meetings of the Board shall be three (3) Directors, each present
personally or by his alternate. If within half an hour after the time fixed for the meeting,
the Directors constituting the quorum are not present, the meeting shall be adjourned and
reconvened to discuss the same agenda on the third working day at the same time of the day and
the same venue, and during the reconvened meeting, any two (2) Directors shall be deemed to
form a quorum provided always that three (3) days’ written notice of each meeting or
reconvened meeting shall be given to each Director entitled to attend such meetings.
	 
	8.7	 	The Shareholders shall use all reasonable endeavours to procure that a quorum is present
throughout each meeting of the Board.
	 
	8.8	 	The Directors may meet at any place for the despatch of their business, adjourn and otherwise
regulate their meetings as they deem fit. A Director may participate at a meeting of Directors
by telephone, teleconference or similar communications equipment or any other form of audio or
visual instantaneous communication by which all persons participating in the meeting are able
to hear and be heard by all participants, without a Director being in the physical presence of
another Director in which event such Director shall be deemed to be present at the meeting. A
Director participating in a meeting in the manner aforesaid may also

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	 	 	be taken into account in ascertaining the presence of a quorum at the meeting. Unless
otherwise agreed unanimously, a Board meeting shall be held at least once every three (3)
months in Singapore.
	 
	8.9	 	At any time, any Director may, and the Secretary on the requisition of a Director shall,
summon a meeting of the Directors. At least seven (7) days’ notice in writing of each meeting
of the Board shall be given to each Director of the Company at the address from time to time
provided by him to the Company for such purpose and such notice shall be accompanied by an
agenda of the matters to be considered at the meeting. Where a Director is absent from
Singapore, such notice may be given by telefax or telex, to a telefax number, or telex number
as the case may be, given by that absent Director to the Secretary. Any Director may waive
notice of any meeting and any such waiver may be retroactive and for this purpose, the
presence of a Director at the meeting shall be deemed to constitute a waiver on his part. No
decision shall be taken on any matter at a meeting of the Board unless notice of such matter
shall have been given in the manner aforesaid or waiver of such notice has been given in
respect of such matter by all of the members of the Board.
	 
	8.10	 	Except as otherwise provided for in clause 8.15(f) of this Agreement, a Director shall not be
prohibited from voting or being counted in a quorum at any Board meeting in respect of any
contract or arrangement in which he is or may be interested provided he has disclosed the
nature of his interest in accordance with applicable law (if any).
	 
	8.11	 	Except as otherwise provided in this Agreement, all resolutions of the Board shall be passed
by a simple majority of the votes of the Directors.
	 
	8.12	 	The Chairman of any meeting of the Board shall have a second or casting vote in case of an
equality of votes.
	 
	8.13	 	A resolution in writing signed by all the Directors appointed to the Company for the time
being shall be as effective as a resolution duly passed at a meeting of the Directors and may
consist of several documents in the like form, each signed by one or more Directors. The
expression “in writing” and “signed” include approval by telefax, telex, cable, telegram,
digital or electronic signature or such other mode of approval or indication of approval as
may be permitted by law by any such Director.
	 
	8.14	 	The Board shall appoint an investment committee (the “Investment Committee”) comprising of
four (4) members, one of whom shall be nominated by IIPL, one by Global Star and one by
GigaMedia. The unanimous approval of the Investment Committee is required for any investment,
including but not limited to, that relating to any online internet game or mobile game, any
capital expenditure of the Company of US$250,000 and above and any other investment decision
by the Company regarding the Use of Funds.
	 
	8.15	 	Notwithstanding the foregoing, the following matters shall require the affirmative vote of
three (3) Directors elected by the holders of Class A Shares including a director nominated by
each of IIPL and Global Star and a director elected by the Holder (whether before or after
conversion into Ordinary Shares according to the Subscription Agreement):

	 	(a)	 	the adoption of the Company’s annual budget (“Annual Budget”) and operating
plan (“Operating Plan”);
	 
	 	(b)	 	any major corporate or financial matters that may either singly or in aggregate
result in a variance of more than fifteen per cent (15%) from the Annual Budget and
Operating Plan approved by the Board;

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	 	(c)	 	any financial or investment commitment or expenditure which either singly or in
aggregate amounts to more than US$50,000 not provided for in the Annual Budget;
	 
	 	(d)	 	any management remuneration plan, hiring dismissal or annual reappointment of
the Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”) or any increase in
the remuneration package of any such executive officer;
	 
	 	(e)	 	the issuance of any management and employee share options or incentive shares;
	 
	 	(f)	 	the entry into any transaction with any director, officer or shareholder of the
Company (or affiliate or relative thereof) involving (i) the disbursement of funds or
transfer of property in the Company or (ii) the formation, termination, extension,
renewal or waiver of any contract;
	 
	 	(g)	 	the giving of any guarantee or indemnity by the Company in connection with any
borrowing;
	 
	 	(h)	 	any change in the accounting policies adopted by the Company;
	 
	 	(i)	 	the creation of any encumbrance with respect to (i) any intellectual property
of the Company and (ii) any other asset or assets of the Company which either singly or
in aggregate have a value of more than US$50,000;
	 
	 	(j)	 	the provision of any credit, loan or the making of any advance by the Company;
	 
	 	(k)	 	the sale, transfer, lease, assignment or disposal of assets which either singly
or in aggregate have a value of more than US$50,000;
	 
	 	(l)	 	the purchase, lease or acquisition of assets which either singly or in
aggregate have a value of more than US$50,000 not provided for in the annual budget of
the Company;
	 
	 	(m)	 	the appointment or removal of any auditor;
	 
	 	(n)	 	the licensing or other transfer of any intellectual property other than in the
ordinary course of business;
	 
	 	(o)	 	the commencement or settlement of any legal proceeding involving more than
US$50,000; and
	 
	 	(p)	 	the entry into by the Company of any transaction or series or transactions
involving an aggregate amount in excess of US$50,000 including incurrence of any
borrowing under any existing or future banking and credit facilities and the granting
of any guarantee, indemnity, performance bond, lien, pledge, charge, mortgage or other
security and the incurrence of any form of indebtedness.

	9.	 	GENERAL MEETINGS
	 
	9.1	 	Notwithstanding anything to the contrary in the Articles, the quorum for a general meeting of
the Company shall be three (3) Shareholders, including a representative from each of
GigaMedia, IIPL and Global Star, personally present or represented by proxy, attorney or
representative, present throughout that general meeting. If within half an hour after the
time fixed for the meeting, the Shareholders constituting the quorum are not present, the
meeting

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	 	 	shall be adjourned and reconvened and any two (2) Shareholders present throughout such
adjourned general meeting shall constitute a quorum.
	 
	9.2	 	The Shareholders shall use all reasonable endeavours to procure that a quorum is present at
and throughout each general meeting.
	 
	9.3	 	All questions and issues arising at a general meeting of the Company shall, unless otherwise
required by any applicable law and subject to clause 9.9, be decided in accordance with the
votes of a simple majority of the Shareholders.
	 
	9.4	 	Each Preference Shareholder shall have the right to that number of votes equal to the number
of votes carried by their respective number of Ordinary Shares then issuable upon conversion
of all its Preference Shares based on the prevailing Conversion Rate. Holders of all series
of Preference Shares and Ordinary Shares shall vote together as a class except as provided in
clause 9.10 below or as required by law.
	 
	9.5	 	A resolution in writing signed by all the Shareholders shall be as effective as a resolution
duly passed at a general meeting of the Company and may consist of such documents in the like
form, each signed by one or more directors. The expressions “in writing” and “signed” shall
include approval by telefax, telex, cable, telegram, digital or electronic signature or such
other mode of approval or indication of approval as may be permitted by law by any such
Shareholder.
	 
	9.6	 	The notice of a general meeting of the Company shall set out an agenda identifying in
reasonable detail the matters to be discussed (unless the Shareholders agree otherwise).
	 
	9.7	 	Without prejudice to clause 9.8, the parties agree that all Shareholders’ meetings shall be
held in Singapore unless otherwise agreed to by all of the Shareholders.
	 
	9.8	 	Without prejudice to clause 9.1, the Shareholders may meet together in person or by
telephone, teleconference or similar communications equipment or any other form of audio or
visual instantaneous communication by which all persons participating in the meeting are able
to hear and be heard by all participants, for the despatch of business and adjourn and
otherwise regulate their meetings as they think fit. A resolution passed by such a conference
shall, notwithstanding that the Shareholders are not present together at one place at the time
of the conference, be deemed to have been passed at a meeting of the Shareholders held on the
day and at the time at which the conference was held and shall be deemed to have been held at
the registered office of the Company and, unless otherwise agreed, all the Shareholders
participating at the meeting shall be deemed for all purposes of this Agreement to be present
at that meeting.
	 
	9.9	 	Notwithstanding the foregoing, the consent of the holders representing seventy-five per cent
(75%) of the Ordinary Shares (including the holders of the outstanding Preference Shares
voting on a Converted Basis together with the holders of Ordinary Shares and not as a single
class) and the holders representing two-thirds of the Preference Shares shall be required for:

	 	(a)	 	The issuance by the Company of any new shares of any class;
	 
	 	(b)	 	Any repurchase or redemption of shares of the Company (other than pursuant to
restricted stock agreements with employees, redemption provisions in the Articles or
pursuant to the terms upon which the shares of the Company were issued);
	 
	 	(c)	 	Any amendment or repeal of any provision of the Memorandum and Articles of
Association of the Company and its subsidiaries;

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	 	(d)	 	Any change in the nature of the business of the Company;
	 
	 	(e)	 	Any merger, sale, consolidation of the Company with or into any entity;
	 
	 	(f)	 	The liquidation or dissolution of the Company or any of its subsidiaries;
	 
	 	(g)	 	The sale of all or substantially all the Company’s assets or the purchase of
all or substantially all of the assets of another entity;
	 
	 	(h)	 	The disposal of any intellectual property rights including all game licensing
contracts;
	 
	 	(i)	 	The declaration or payment of a dividend on any shares of the Company;
	 
	 	(j)	 	Any incurrence of debt by the Company other than the trade debts not
exceeding an aggregate value of US$50,000; and
	 
	 	(k)	 	Decisions regarding the terms of a public offering.

	9.10	 	Without prejudice to the above, the consent of the holders of at least 70% in value of the
respective series of Preference Shares shall be required for:

	 	(a)	 	any change in any of the rights, preferences, privileges or powers of, or the
restrictions provided for the benefit of, the holders of that series of Preference
Shares;
	 
	 	(b)	 	the authorization, creation or issuance of (1) any Ordinary Shares or (2) any
class or series of shares having any right, preference or priority superior to or on a
pari passu basis with their series of Preference Shares; or
	 
	 	(c)	 	any new issuance of debt or equity security of the Company or its subsidiaries.

	10.	 	BUSINESS OF THE COMPANY
	 
	10.1	 	The Shareholders agree that, effective from the Completion Date, their respective rights in
the Company shall be regulated by this Agreement and the Articles.
	 
	10.2	 	Subject to clause 10.1, the Shareholders and the Company agree to be bound by and comply with
the provisions of this Agreement which relate to them and all provisions of the Articles will
be enforceable by the parties between themselves.
	 
	10.3	 	Subject to clause 10.1, each of the Shareholders agrees to exercise its respective rights
under this Agreement and as a Shareholder (insofar as it lawfully can) to:

	 	(a)	 	procure that the Company proceeds with the Business in all respects and
continues to pursue the same with reasonable despatch;
	 
	 	(b)	 	procure that the Business is conducted in the best interests of the Company
and in accordance with sound and good commercial and business practice and
profit-making principles so as to generate the maximum achievable profits available
for distribution;

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	 	(c)	 	ensure that the Director(s) appointed by it exercises his powers as Director
and otherwise uses its reasonable endeavours to seek to ensure that the business of
the Company is confined to the Business;
	 
	 	(d)	 	procure that the Company complies with the Articles and all applicable laws
as well as the terms and conditions of any licence, permit or consent by which the
Company is bound at all times; and
	 
	 	(e)	 	ensure that the Director(s) appointed by it exercises his powers as Director
and otherwise uses its reasonable endeavours to seek to ensure that all employees of
the Company enter into non-compete and assignment of invention agreements in favour of
the Company.

	10.4	 	Any dealings with the Company and/or the Shareholders or any associates of such persons in
relation to the supply of goods or services shall be on normal arm’s length terms negotiated
between the relevant parties and no such person shall claim or be entitled to any preferential
treatment in relation thereto by reason of the relationship of such persons under this
Agreement or any shareholding in connection with the Company.
	 
	10.5	 	Without the prior consent of IIPL, and whether or not IIPL is then a shareholder of the
Company, neither the Company nor its subsidiaries shall use, publish or reproduce the “IDA” or
“IIPL” name or logo, or any similar name, trademark, or logo in any of their marketing,
advertising or promotional materials or otherwise for any marketing, advertising or
promotional purposes.
	 
	10.6	 	Each of the Parties acknowledges that the Company and GigaMedia shall become strategic
partners and to the extent permitted by the licensing and other contracts entered into between
the Company and the publishers of the online games conferring on the Company publishing rights
in respect of those games in Hong Kong and/or Taiwan (if any), each of the Shareholders agrees
to exercise its respective rights under this Agreement (insofar as it lawfully can) to procure
that the Company shall, if it decides not to exercise such right, first offer GigaMedia the
right to operate such online games in Hong Kong and/or Taiwan on terms no less favourable to
those offered to any other party.

	11.	FINANCE
	 
	11.1	(a) 	In the event any additional working capital is required by the Company with regards to
the Business, such working capital shall be met through the provision of revolving credit
facilities. Any additional working capital of the Company may be met through (i) provision of
loans, letters of credit or credit facilities to the Company from such financial institutions
as the Board may from time to time agree; or (ii) subject to the consent of the relevant
Shareholder, provision of advance loans by the Shareholders to the Company on such terms as
may be agreed between the relevant Shareholder and the Company.

	 	(b)	 	In respect of any loan by any Shareholder to be provided pursuant to this
clause, such loan shall be entitled to interest payment by the Company at the rate to
be agreed from time to time on the basis of a one (1) month interest period. Unless
otherwise agreed between the parties hereto, such loans shall be repaid in full within
two (2) months of the disbursement.

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	12.	 	MANAGEMENT, ACCOUNTS AND INFORMATION

	12.1	 	The Shareholders shall, for so long as they remain Shareholders of the Company, be furnished
with such information relating to the Business and/or the Company as they may from time to
time reasonably request, in particular but without prejudice to the generality of the
foregoing, the following information:

	 	(a)	 	the Annual Budget and Operating Plan for the succeeding fiscal year no later
than thirty (30) days prior to the end of each fiscal year;
	 
	 	(b)	 	copies of the audited consolidated accounts of the Company in respect of each
financial year forthwith on the same becoming available and in any event not later
than forty five (45) days from the date of each such financial year, such accounts to
be audited by a Big Four accounting firm of the Company’s choice, being
PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young or KPMG;
	 
	 	(c)	 	copies of unaudited consolidated accounts of the Company no later than
twenty-five (25) days from the end of the first three (3) fiscal quarters of each
financial year, such accounts to be reviewed by a Big Four accounting firm of the
Company’s choice, being PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young or
KPMG;
	 
	 	(d)	 	copies of the unaudited consolidated monthly accounts of the Company no later
than twenty-five (25 days) days from the end of each month;
	 
	 	(e)	 	monthly bank account(s) statements of the Company within fifteen (15) days
after the end of each month; and
	 
	 	(f)	 	information relating to the operation of the Company or its subsidiaries,
including information on the average number of concurrent users for each online game
operated by the Company.

	12.2	 	The accounts of the Company shall be prepared on a consistent basis and in accordance with
generally accepted accounting principles consistently applied in Singapore and the United
States.
	 
	12.3	 	Each Shareholder shall have the right independently to call for, to exercise and inspect at
all reasonable times, the books, records and accounts of the Company and any of its
subsidiaries and may appoint and authorise any person or persons to make such examination on
their behalf. The Shareholders shall procure that the Auditors shall co-operate with such
persons and provide access to such information and records as well as any explanations as such
persons may reasonably request in relation to the Company’s accounts and records. Each
Shareholder shall also have the right to request for any discussions with, or explanations
from any Director, officer, employee, Auditor, legal or other professional adviser of the
Company in relation to any queries it may have relating to the Business and/or the operations
of the Company. Any costs incurred shall be borne by the Shareholder requesting for the
examination, unless any material or substantial defect was found through such examination
evidencing breach of this Agreement in which case the party so breaching this Agreement shall
bear the costs so incurred.
	 
	12.4	 	The financial year of the Company shall be from 1 January to 31 December of each year.
	 
	12.5	 	The Company shall maintain two (2) bank accounts (respectively the “Investment Account” and
“Operating Account”) for the purpose of its business activities. The Investment Account
through which all investment activities approved by the Investment Committee are transacted
shall require two (2) signatories for all transactions, one of whom

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	 	 	shall be a director appointed by IIPL and the other of whom shall be appointed by Global
Star. The Operating Account, through which the daily operational expenses and budgeted
expenditure are transacted will require two (2) account signatories for withdrawals of more
than US$100,000, one of whom shall be a director appointed by IIPL and the other of whom
shall be appointed by Global Star. For the avoidance of doubt, drawings shall be in
accordance with the proper authorisation of the Board and Investment Committee and all
financing raised by the Company shall be credited into the Investment Account and the
annual operating budget approved by the Board shall be drawn down from the Investment
Account into the Operating Account prior to the start of the financial year.

	13.	 	TRANSFER OF SHARES
	 
	13.1	 	Except as otherwise provided for in this Agreement, a Shareholder shall be entitled to sell,
transfer or otherwise dispose of all but not some only, of its Shares provided that that
Shareholder first makes an offer to sell the same to the holders of Preference Shares in
compliance with the rights of pre-emption contained in clause 13.2.
	 
	13.2	 	Any Shareholder desirous of selling its Shares or any interest therein (the “Seller”) shall
do the following:

	 	(a)	 	The Seller shall give a notice in writing (a “Transfer Notice”) to the
holders of Preference Shares specifying the number of Shares held by him to be offered
at the prescribed price (the “Prescribed Price”);
	 
	 	(b)	 	The Prescribed Price shall be a price to be agreed upon between the Seller
and the Directors and, in a case where the Seller and Directors are unable to agree,
at a price which the Auditors shall by writing under his hand certify to be in his
opinion, the fair value thereof as between a willing seller and a willing buyer having
regard to the tangible net asset value per Share of the Company;
	 
	 	(c)	 	The Transfer Notice shall specify a period (the “Prescribed Period”) being
not less than twenty-one (21) days from the date of the Transfer Notice within which
the offer must be accepted or (in default) will lapse. A Transfer Notice once given
shall be irrevocable;
	 
	 	(d)	 	If within the Prescribed Period, any or all of the holders of Preference
Shares (the “Buyer(s)”) accept(s) the offer contained in a Transfer Notice by giving
notice (an “Acceptance Notice”) to that effect to the Seller, the Seller shall
allocate the said Shares to or amongst the Buyer(s) and in the case of competition,
pro-rata (as nearly as possible) according to the pro-rata proportion of their
shareholdings in the issued share capital of the Company, on a Converted Basis,
Provided that no Buyer(s) shall be obliged to take more than the maximum number of
Shares specified by him (if any) in the Acceptance Notice; and the Seller shall upon
the expiry of the Prescribed Period give notice of such allocation to the Buyer(s) (an
“Allocation Notice”) to whom the Shares have been allocated and shall specify in such
Allocation Notice, the place and time (being not later than twenty-one (21) days after
the date of the said Allocation Notice) at which the sale of the Shares so allocated
shall be completed. Where however, any holder of Preference Shares does not accept the
offer contained in the Transfer Notice and the aggregate number of Shares specified in
the Acceptance Notices received is less than the number of Shares offered by the
Seller, the other holders of Preference Shares shall be entitled, at their election,
to purchase the remaining Shares at the Prescribed Price and where more than one other
holder of Preference Shares wishes to purchase such Shares, the Shares will be
allocated between the holders pro-rata (as nearly as possible) according to the 

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	 	 	 	pro-rata proportion of their shareholdings in the issued share capital of the Company,
on a Converted Basis;
	 
	 	(e)	 	The Seller shall be bound to transfer the Shares comprised in the Allocation
Notice(s) to the Buyer(s) named therein at the time and place therein specified and,
if he shall fail to do so, any one Director or the Secretary shall be deemed to have
been appointed agent of the Seller with full power to execute, complete and deliver,
in the name and on behalf of the Seller, transfers of the Shares to the Buyer(s)
thereof against payment of the Prescribed Price to the Company. On payment of the
Prescribed Price to the Company, the Buyer(s) shall be deemed to have obtained a good
discharge for such payment. The Company shall forthwith pay the relevant monies into a
separate bank account in the Company’s name and shall hold such monies in trust for
the Seller. After the Buyer(s) is/are registered in the Register of Members as the
holder(s) of such Shares pursuant to the transfer thereof, the validity of the
proceedings shall not be questioned by any person;
	 
	 	(f)	 	Subject to the provisions of this clause 13.2, any Buyer(s) which serves an
Acceptance Notice shall become bound to purchase all of the Shares allocated to him in
accordance with clause 13.2(d) above;
	 
	 	(g)	 	If, by the end of the Prescribed Period, no Acceptance Notice has been served
or not all the Shares comprised in the Transfer Notice are subject to the Acceptance
Notice(s) issued by the Buyer(s), the Seller shall subject to clause 13.3 be entitled
to sell its Shares to a third party at a price which is not lower than the Prescribed
Price provided that if any Shareholder does not purchase its entitlement of the Shares
offered, such Shares shall first be offered to the other Shareholders at the
Prescribed Price before they are offered to any third party. The Seller shall give
prior notice in writing of the identity of the third party (the “Intended Transferee”)
to whom he intends to sell the Shares, to the Shareholders and the Company.

	13.3	 	It shall be a condition precedent to the right of any Shareholder to transfer Shares to the
Intended Transferee that:

	 	(a)	 	the other Shareholder(s) unanimously agree in writing to the transfer of the
Shares to the Intended Transferee and such consent shall not be unreasonably withheld;
and
	 
	 	(b)	 	the Intended Transferee if not already bound by the provisions of this
Agreement, executes a deed of ratification and accession under which it agrees to be
bound by and be entitled to the benefit of this Agreement as if an original party
hereto, in place of the transferor prior to the date of such transfer.

	13.4	 	The Shareholders shall procure that any transfer of Shares in accordance with this clause 13
and the transferee thereto shall (subject to all formalities in respect thereof having been
fulfilled) be duly registered by the Company.
	 
	13.5	 	No Shareholder shall without the prior written consent of the other Shareholders create or
permit to subsist any mortgage, charge, pledge, lien or other encumbrance of any nature
whatsoever over its Shares. No Shareholder shall grant any option or other rights to dispose
of any interest in any Shares held by it (otherwise than by a transfer in accordance with
clause 13 and the Articles). Except as provided in this Agreement, no Shareholder shall enter
into any agreement with respect to the voting rights attached to all or any of its Shares or
other securities in the Company or grant any option in relation thereto.

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	13.6	 	On a sale, transfer or disposition of Shares in accordance with the preceding sub-clauses of
this clause 13:

	 	(a)	 	the Seller shall repay all loans, borrowings and indebtedness outstanding to
the Company from the Seller (together with any accrued interest thereon);
	 
	 	(b)	 	the other Shareholders shall procure the Company to repay all loans,
borrowings and indebtedness outstanding to the Seller from the Company (together with
accrued interest thereon); and
	 
	 	(c)	 	the Seller shall procure the resignation and/or removal of any Director
appointed by it.

	13.7	 	For the avoidance of doubt, the foregoing right of first refusal shall not apply to transfers
to affiliates or immediate family members (or trust thereof) of a holder.
	 
	13.8	 	For the purposes of the remaining provisions of this clause 13:

	 	(a)	 	the word “company” includes any body corporate;
	 
	 	(b)	 	the expression “a Member of the Same Group” in relation to any company, means
a company which is for the time being a related company to the first mentioned company
as defined in the Act;
	 
	 	(c)	 	the expression “Transferor Company” means a company which has transferred or
proposes to transfer Shares to a Member of the Same Group;
	 
	 	(d)	 	the expression “Transferee Company” means a company for the time being
holding Shares in consequence, directly or indirectly, of a transfer of Shares or
series of transfers of Shares between Members of the Same Group (the relevant
Transferor Company in the case of a series of such transfer being the first transferor
in such series); and
	 
	 	(e)	 	the expression “the Relevant Shares” means and includes (so far as the same
remain for the time being held by any Transferee Company) the Shares originally
transferred to such Transferee Company and any additional Shares issued to or acquired
by such Transferee Company.

	13.9	 	All but not some only of a Shareholder’s Shares may at any time be transferred by the
Shareholder to a company which is a Member of the Same Group. If any Shareholder transfers its
Shares to a Member of the Same Group, then the Shareholder hereby guarantees the performance
by the Transferee Company of all obligations to be performed by it under this Agreement or in
respect of such Shares. It shall be a condition precedent to the transfer of Shares to a
Member of the Same Group that the Transferee Company executes a deed of ratification and
accession under which it agrees to be bound by and be entitled to the benefit of this
Agreement as if an original party in place of the transferor prior to the date of such
transfer.
	 
	13.10	 	If a Transferee Company ceases to be a Member of the Same Group as the Transferor Company
from which (whether directly or by a series of transfers) the Relevant Shares were derived,
then within 14 days of such cessation the Transferee Company shall transfer the Relevant
Shares to the Transferor Company or any other nominee of the Transferor Company (which shall
be a Member of the Same Group) and the Transferor Company shall be bound to either accept the
Relevant Shares or to procure that its nominee shall accept the Relevant Shares, as the case
may be. In case of default of this clause 13.10, the Transferee

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	 	 	Company shall be deemed to have appointed a Director appointed by the other Shareholders as
its lawful attorney with full power to execute any instrument of transfer, deed of
assignment or any other document necessary to implement the said transfer and the Transferor
Company is deemed either to have consented to accept the Relevant Shares and to being
registered in the Company’s register of members and register of transfers as the holder of
the Relevant Shares or to have undertaken to procure such consent from its nominee, as the
case may be. Where the Relevant Shares are transferred back to the Transferor Company, the
Transferor Company shall execute a deed of ratification and accession under which it agrees
to be bound by and be entitled to the benefit of this Agreement as if an original party
prior to the date of such transfer. Where the Relevant Shares are transferred back to a
nominee of the Transferor Company, the Transferor Company shall procure that its nominee
shall execute a deed of ratification and accession under which it agrees to be bound by and
be entitled to the benefit of this Agreement as if an original party in place of the
transferor prior to the date of such transfer.

	14.	 	COMPULSORY TRANSFERS
	 
	14.1	 	If any Shareholder (a “Defaulting Shareholder”):

	 	(a)	 	shall commit any material breach of its obligations under this Agreement and,
if remediable, shall fail to take all necessary action to remedy such breach within
fourteen (14) days upon the service of notice by any of the other Shareholder(s) (the
“Non-Defaulting Shareholder(s)”) complaining of such breach;
	 
	 	(b)	 	shall go into voluntary liquidation otherwise than for the purpose of
reconstruction or amalgamation or an order of the court is made for its compulsory
liquidation or shall have a receiver (or a receiver and manager) or similar officer
appointed in respect of any substantial part of its assets or shall have a judicial
manager or equivalent officer appointed;
	 
	 	(c)	 	shall compound or make any composition or arrangement with its creditors;
	 
	 	(d)	 	shall cease or threaten to cease wholly or to carry on its business,
otherwise than for the purpose of a reconstruction or amalgamation without insolvency
previously approved by the other Shareholders;
	 
	 	(e)	 	shall sell, transfer, lease or otherwise dispose of the whole or
substantially the whole of its assets, rights and undertaking;
	 
	 	(f)	 	shall become insolvent;
	 
	 	(g)	 	is subject to a distress, sequestration, execution, attachment or garnishee
which is levied or enforced against its property, undertaking or revenues and is not
discharged within ten (10) days;
	 
	 	(h)	 	is unable to pay its debts as and when they fall due; or
	 
	 	(i)	 	any of the matters in sub-clauses (b), (c), (d), (e) and (f) above occurs in
relation to any holding company or ultimate holding company for the time being of the
Defaulting Shareholder,

	 	 	then upon notice by any of the Non-Defaulting Shareholder(s) to the Company and the
Defaulting Shareholder, the Defaulting Shareholder shall thereupon be deemed to have served
on the Non-Defaulting Shareholder, a notice (the “Default Transfer Notice”)

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	 	 	offering irrevocably to sell the legal and beneficial ownership of all its Shares (the
“Sale Shares”) at the fair value of the Shares less twenty per cent (the “Default
Prescribed Price”) as determined by the Auditors in accordance with clause 14.2 within
fourteen (14) days after the issue of the Auditor’s certificate in accordance with clause
14.2 or such longer period as agreed by the Non-Defaulting Shareholders (the “Default
Prescribed Period”). The procedure governing the sale of the Sale Shares pursuant hereto
shall be in accordance with the procedure set out in clause 13.2 save for:

	 	(aa)	 	any reference to the Seller in clause 13.2 shall be deemed to be a reference
to the Defaulting Shareholder;
	 
	 	(bb)	 	any reference to the Purchaser(s) shall be deemed to be a reference to the
Non-Defaulting Shareholder(s) who issue acceptance notice(s) in respect of the Sale
Shares respectively;
	 
	 	(cc)	 	the Default Prescribed Price and the Default Prescribed Period shall be as
determined in the manner set out in this clause 14.1;

	 	 	Save as provided herein, any Transfer Notice served by a Defaulting Shareholder pursuant to
clause 13.2 during the Default Prescribed Period mentioned in this clause shall be void and
of no effect. The provisions of clauses 13.4 and 13.6 shall mutatis mutandis apply to the
sale of the Sale Shares hereunder.

	14.2	 	The Auditors will act as experts and not as arbitrators and will certify in writing what in
their opinion was the fair value of the Sale Shares on the date the Default Transfer Notice
was deemed to have been served pursuant to clause 14.1, on the following assumptions:

	 	(a)	 	valuing the Sale Shares as an arm’s length sale between a willing seller and
a willing purchaser;
	 
	 	(b)	 	if the Company was then carrying on business as a going concern, on the
assumption that it will continue to do so; and
	 
	 	(c)	 	valuing the Sale Shares as a rateable proportion of the total value of the
issued share capital of the Company which value shall not be discounted or enhanced by
reference to the number of the Sale Shares having regards to the net tangible asset
value of the Company.

	 	 	If any difficulty shall arise in applying any of the foregoing assumptions then such
difficulty shall be resolved by the Auditors in such manner as they shall in their absolute
discretion think fit. All costs of the Auditors shall be borne by the Defaulting
Shareholder. The Shareholders shall procure the Auditors to determine the Default
Prescribed Price in accordance with this clause 14.2 as soon as practicable after the
service of a notice of default on the Defaulting Shareholder and the Company by any of the
Non-Defaulting Shareholders.
	 
	14.3.	 	Notwithstanding anything hereinbefore mentioned, on the occurrence of any of the events
mentioned in clause 14.1, the Non-Defaulting Shareholder(s) may by notice to the Defaulting
Shareholder request that the Company be liquidated and unless the Shareholders otherwise
agree, they shall each take such steps as may be necessary to forthwith liquidate the Company.

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	15.	 	TAG-ALONG RIGHTS
	 
	15.1	 	Notwithstanding clause 13.1, if any Shareholder proposes to transfer, in a single transaction
or a series of related transactions, any of the Shares held by it in a bona fide sale (the
“Transfer”), then that Shareholder (the “Transferring Shareholder”) shall promptly give
written notice (the “Notice of Transfer”) simultaneously to the Company and to the Preference
Shareholders. The Notice of Transfer shall describe in reasonable detail the terms and
conditions of the proposed Transfer including, without limitation, the number of Shares to be
transferred, the nature of such Transfer, the consideration to be paid, and the name and
address of each prospective purchaser transferee.
	 
	15.2	 	Each of the Preference Shareholders shall have the right, exercisable upon written notice
(the “Notice of Participation”) to the Company within thirty (30) days after the receipt of
the Notice of Transfer, to inform the Company in writing whether it elects to participate in
the Transfer by the Transferring Shareholder on the same terms and conditions as set forth in
the Notice of Transfer. The Notice of Participation shall indicate the number of Shares that
other Shareholder elects to Transfer pursuant to this clause 15.2, up to that number of Shares
equal to the product obtained by multiplying (i) the aggregate number of Shares set forth in
the Notice of Transfer by (ii) that other Shareholder’s Shareholder Proportion at time of the
Transfer. That other Shareholder who elects to participate in the Transfer by the Transferring
Shareholder pursuant to this clause 15.2 (a “Tag-Along Participant”) shall promptly deliver to
the Company (who shall be deemed to be constituted the agent of the Transferring Shareholder
and the Tag-Along Participant for the Transfer in accordance with the Articles) for transfer
to the prospective purchaser one or more share transfer forms, properly executed for transfer,
which represent the number of Shares which such Tag-Along Participant elects to Transfer,
together, where applicable with the relevant share certificates and any other documents
required for the Transfer.
	 
	15.3	 	To the extent that a Preference Shareholder fails to elect to participate in the Transfer by
the Transferring Shareholder, that Preference Shareholder shall be deemed to have consented to
the Transfer by the Transferring Shareholder on the terms and conditions and to the
prospective purchaser as set forth in the Notice of Transfer. Any proposed Transfer on terms
and conditions more favourable than those described in the Notice of Transfer or to a
transferee not identified in such notice, as well as any subsequent proposed Transfer of any
of the Shares held by the Transferring Shareholder, shall again be subject to the tag-along
rights of the other Shareholders and shall require compliance by the Transferring Shareholder
with the procedures described in this clause 15. The exercise or non-exercise of the rights of
a Shareholder hereunder to participate in one or more sales by another Shareholder shall not
adversely affect the first-mentioned Shareholder’s rights to participate in subsequent sales
of Shares by a Shareholder pursuant to this clause 15.
	 
	15.4	 	Upon consummation of the Transfer of the Shares pursuant to the terms and conditions
specified in the Notice of Transfer, the Transferring Shareholder or the Company, as the case
maybe, shall remit to the Tag-Along Participant that portion of the proceeds to which such
Tag-Along Participant is entitled by reason of its participation in such Transfer. To the
extent that any prospective purchaser or purchasers prohibits such assignment or otherwise
refuses to purchase Shares from a Tag-Along Participant exercising its tag-along rights
hereunder, the Transferring Shareholder shall not Transfer to such prospective purchaser or
purchasers any of its Shares unless and until, simultaneously with such Transfer, the
Transferring Shareholder shall purchase the Shares from the Tag-Along Participant on the same
terms and conditions as specified in the Notice of Transfer.
	 
	15.5	 	Notwithstanding the foregoing, tag-along rights shall not apply to any Transfer or Transfers
by a Shareholder to a subsidiary of such a Shareholder or made pursuant to a bona

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	 	 	fide loan transaction with a financial institution that creates a mere security interest;
Provided that in the event of any Transfer made pursuant to this clause 15.5 such
Shareholder shall inform the Company and the other Shareholders of such Transfer prior to
effecting it and the transferee, prior to the completion of the Transfer, shall have
executed documents (in such form as may be reasonably approved by the other Shareholders)
assuming the obligations of the relevant Shareholder under this Agreement with respect to
the Shares so transferred to such transferee.
	 
	15.6	 	Any purported Transfer by a Shareholder in violation of this Agreement shall be null and void
and of no force and effect and the purported transferees shall have no rights or privileges in
or with respect to the Company or the Shares purported to have been so transferred. The
Company shall refuse to recognise any such Transfer and shall not reflect on its records any
change in ownership of such Shares purported to have been so transferred.

	16.	 	BRING ALONG RIGHTS
	 
	 	 	If the holders of at least seventy five per cent (75%) of the outstanding Ordinary Shares
(including the votes of the holders of the outstanding Preference Shares voting on a
Converted Basis together with the holders of the Ordinary Shares and not as a single class)
propose to enter into an agreement or arrangement for the sale of all of their shares to a
third party, this majority shall have the right to cause all the holders of the Ordinary
Shares and Preference Shares to sell their shares in the Company pursuant to such
transaction.

	17.	 	REGISTRATION RIGHTS
	 
	17.1	 	An Initiating Holder shall be entitled, at any time after a QPO, to request for the
Registration of Registrable Securities by way of notice to writing to the Company where the
reasonably anticipated aggregate offering size to the public is at least US$15,000,000. Upon
the receipt of such a request, the Company shall (a) promptly give written notice of the
proposed Registration to all other Shareholders and (b) as soon as practicable, and in any
event within sixty (60) days of the receipt of such request, cause the Registrable Securities,
to be Registered and/or qualified for sale and distribution in such jurisdictions as the
Initiating Holder may reasonably request. The Company shall be obligated to effect only three
(3) such Registrations.
	 
	17.2	 	An Initiating Holder shall be entitled, at any time after a QPO, to request by way of notice
to writing to the Company, for the filing of a Registration Statement on Form F-3 (or any
successor form to Form F-3, or any comparable form for Registration in a jurisdiction other
than the United States) for a public offering of the Registrable Securities where the
reasonably anticipated aggregate offering price to the public is at least US$15,000,000, and
the Company will be entitled to use Form 
F-3 or a comparable form to Register the Registrable
Securities. Upon receipt of such a request the Company shall, as soon as practicable, and in
any event within sixty (60) days of the receipt of such request, cause the Registrable
Securities specified in the request, to be Registered and qualified for sale and distribution
in such jurisdictions as the Initiating Holder may reasonably request. The Company’s
obligation to effect registrations pursuant to this clause 17.2 is unlimited.
	 
	17.3	 	Where the Company proposes to Register for its own account any of its Shares in connection
with the public offering of such Shares, the Company shall promptly give notice in writing to
the Shareholders and, upon the written request of such Shareholders (such request to be in
writing and given not later than 20 days after the delivery of the notice by the Company of
such Registration), the Company shall use all reasonable endeavours to include in such
Registration any Registrable Securities requested by the Shareholders.

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	17.4	 	Whenever required under this Agreement to effect the Registration of any Registrable
Securities, the Company shall, as expeditiously as possible:

	 	(a)	 	Prepare and file with the Commission a Registration Statement with respect to
those Registrable Securities and use its best efforts to cause that Registration
Statement to become effective, and, upon the request of the Shareholders, keep the
Registration Statement effective for up to a year;
	 
	 	(b)	 	Prepare and file with the Commission amendments and supplements to that
Registration Statement and the prospectus used in connection with the Registration
Statement as may be necessary to comply with the provisions of Applicable Securities
Law with respect to the disposition of all securities covered by the Registration
Statement;
	 
	 	(c)	 	Furnish to the Shareholders the number of copies of a prospectus, including a
preliminary prospectus, required by Applicable Securities Law, and any other documents
as they may reasonably request in order to facilitate the disposition of Registrable
Securities owned by them;
	 
	 	(d)	 	Use its best efforts to Register and qualify the securities covered by the
Registration Statement under the securities laws of any jurisdiction, as reasonably
requested by the Shareholders, provided that the Company shall not be required to
qualify to do business or file a general consent to service of process in any such
jurisdictions, and provided further that in the event any jurisdiction in which the
securities shall be qualified imposes a non-waivable requirement that expenses incurred
in connection with the qualification of the securities be borne by selling
shareholders, those expenses shall be payable pro rata by selling shareholders;
	 
	 	(e)	 	In the event of any underwritten public offering, entering into and performing
its obligations under an underwriting agreement, in usual and customary form, with the
managing underwriter of the offering. Each shareholder participating in the
underwriting shall also enter into and perform its obligations under such an agreement;
	 
	 	(f)	 	Notify the holders of Registrable Securities covered by the Registration
Statement at any time when a prospectus relating thereto is required to be delivered
under Applicable Securities Law or of the happening of any event as a result of which
any prospectus included in the Registration Statement, as then in effect, includes an
untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the light
of the circumstances then existing;
	 
	 	(g)	 	Provide a transfer agent and registrar for all Registrable Securities
Registered pursuant to the Registration Statement and, where applicable, a CUSIP number
for all those Registrable Securities, in each case not later than the effective date of
the Registration;
	 
	 	(h)	 	Furnish, at the request of any Initiating Holder, on the date that such
Registrable Securities are delivered for sale in connection with a Registration
pursuant to this Agreement, (i) an opinion, dated the date of the sale, of the counsel
representing the Company for the purposes of the Registration, in form and substance as
is customarily given to underwriters in an underwritten public offering; and (ii) a
comfort letter dated the date of the sale, from the independent certified public
accountants of the Company, in form and substance as is customarily given by

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	 	 	 	independent certified public accountants to underwriters in an underwritten public
offering, addressed to the underwriters; and
	 
	 	(i)	 	Take all reasonable action necessary to list the Registrable Securities on
the primary exchange upon which the Company’s securities are then traded.

	17.5	 	To the extent permitted by law, all expenses (other than any underwriting discounts and
commissions applicable to the sale of the Registrable Securities) incurred in connection with
Registrations, filings or qualifications pursuant to this Agreement, including (without
limitation) all Registration, filing and qualification fees, printers’ and accounting fees,
fees and disbursements of counsel for the Company and underwriters, shall be borne by the
Company. The Company shall not, however, be required to pay for any expenses of any
Registration proceeding begun pursuant to this Agreement if the Registration request is
subsequently withdrawn at the request of the Shareholders.
	 
	17.6	 	The right to cause the Company to Register Registrable Securities pursuant to this Agreement
may be assigned by a Shareholder to a transferee or assignee of such securities provided that:
(a) the Company is, within a reasonable time after such transfer, furnished with written
notice of the name and address of such transferee or assignee and the securities with respect
to which such registration rights are being assigned and (b) such transferee or assignee
agrees in writing to be bound by and subject to the terms and conditions of this Agreement. In
the event that a transfer or assignment of Registrable Securities does not satisfy the
conditions set forth above, such securities shall no longer be deemed to constitute
“Registrable Securities” for purposes of this Agreement.
	 
	17.7	 	The Company shall not without the prior written consent of the Holders, enter into any
agreement with any Shareholder or any prospective Shareholder which would allow such
Shareholder or prospective Shareholder to enjoy Registration rights on terms more favourable
than those granted to the Holders or any other Shareholder.
	 
	17.8	 	To the extent permitted by law, the Company (the “indemnifying party”) will indemnify and
hold harmless the Shareholder, its officers, directors, shareholders, legal counsel and
accountants, any underwriter (as defined in the Securities Act) for such Shareholder and each
Person, if any, who controls (as defined in the Securities Act) the Shareholder or underwriter
(each an “indemnified party”) against any losses, claims, damages or liabilities (joint or
several) to which they may become subject under laws which are applicable to the Company and
relate to action or inaction required of the Company in connection with any Registration,
qualification, or compliance, insofar as such losses, claims, damages, or liabilities (or
actions in respect thereof) arise out of or are based upon any of the following statements,
omissions or violations (each a “Violation”): (i) any untrue statement or alleged untrue
statement of a material fact contained in such Registration Statement, including any
preliminary prospectus or final prospectus contained therein or any amendments or supplements
thereto, (ii) the omission or alleged omission to state in the Registration Statement,
including any preliminary prospectus or final prospectus contained therein or any amendments
or supplements thereto, a material fact required to be stated therein or necessary to make the
statements therein not misleading, or (iii) any violation or alleged violation by the Company
of Applicable Securities Laws, or any rule or regulation promulgated under Applicable
Securities Laws. The Company will reimburse the Shareholders, underwriter or controlling
person for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action.
	 
	17.9	 	Promptly after receipt by an indemnified party under clause 17.8 above of notice of the
commencement of any action (including any governmental action), such indemnified party will,
if a claim in respect thereof is to be made against any indemnifying party under clause

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	 	 	17.8, deliver to the indemnifying party a written notice of the commencement thereof and
the indemnifying party shall have the right to participate in, and, to the extent the
indemnifying party so desires, to assume the defense thereof. The indemnified party shall
have the right to retain one separate counsel, with the fees and expenses to be paid by the
indemnifying party, if representation of such indemnified party by the counsel retained by
the indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such counsel in
such proceeding. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action, if prejudicial to its ability to
defend such action, shall relieve such indemnifying party of any liability to the
indemnified party under clause 17.8, but the omission to deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any indemnified
party otherwise than under this clause 17.
	 
	17.10	 	If any indemnification provided for in clause 17.8 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability,
claim, damage or expense referred to herein, the indemnifying party, in lieu of indemnifying
such indemnified party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage or expense in such
proportion as is appropriate to reflect the relative fault of the indemnifying party, on the
one hand, and of the indemnified party, on the other, in connection with the statements or
omissions that resulted in such loss, liability, claim, damage or expense, as well as any
other relevant equitable considerations. The relative fault of the indemnifying party and of
the indemnified party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified party and the
parties’ relative intent, knowledge, access to information, and opportunity to correct or
prevent such statement or omission.
	 
	17.11	 	The obligations of the Company and the Shareholders under clauses 17.8, 17.9 and 17.10 shall
survive the completion of any offering of Registrable Securities in a Registration Statement
under this Agreement, and otherwise.
	 
	17.12	 	With a view to making available to the Shareholders the benefits of Rule 144 promulgated
under the Securities Act and any comparable provision of any Applicable Securities Law that
may at any time permit such Shareholders to sell securities of the Company to the public
without Registration or pursuant to a Registration on Form F-3 (or any comparable form in a
jurisdiction other than the United States), the Company agrees to:

	 	(i)	 	make and keep public information available, as those terms are understood and
defined in Commission Rule 144 (or comparable provision under Applicable Securities
Laws in any jurisdiction where the Company’s securities are listed), at all times
following ninety (90) days after the effective date of a Qualified Public Offering;
	 
	 	(ii)	 	file with the Commission in a timely manner all reports and other documents
required of the Company under all Applicable Securities Laws; and
	 
	 	(iii)	 	at any time following 90 days after the effective date of the Qualified Public
Offering, promptly furnish to the Shareholders, upon request (i) a written statement by
the Company that it has complied with the reporting requirements of all Applicable
Securities Laws at any time after it has become subject to such reporting requirements
or, at any time after so qualified, that it qualifies as a registrant whose securities
may be resold pursuant to Form F-3 (or any form comparable thereto under Applicable
Securities Laws of any jurisdiction where the Company’s

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	 	 	 	securities are listed), (ii) a copy of the most recent annual or quarterly report
of the Company and such other reports and documents as may be filed by the Company
with the Commission, and (iii) such other information as may be reasonably
requested in availing any Holder of any rule or regulation of the Commission, that
permits the selling of any such securities without Registration or pursuant to such
form.

	18	 	DURATION AND TERMINATION
	 
	18.1	 	This Agreement shall take effect from Completion Date and shall continue without limit in
time until terminated by (i) an underwritten public offering of the Company or (ii) a merger,
amalgamation or consolidation of the Company (in which the shareholders of the Company
immediately prior to such event hold, immediately after, Shares representing less than a
majority of the voting power of the outstanding Shares of the surviving entity) or the sale of
all or substantially all of the Company’s assets or (iii) liquidation, dissolution or winding
up of the Company or (iv) the unanimous agreement of all the parties hereto in writing,
whichever is earlier.
	 
	18.2	 	If any Shareholder sells all of its Shares in accordance with the provisions of this
Agreement then subject to clause 18.3, it shall be released from all of its obligations
hereunder save for its obligations under clauses 19.1 and 23 and 24.1. If, following any such
transfer, there is more than one Shareholder bound by the provisions of this Agreement, then
this Agreement shall continue in full force and effect as between the continuing Shareholders.
	 
	18.3	 	The termination of this Agreement howsoever caused and the ceasing by any Shareholder to hold
any Shares shall be without prejudice to any obligations or rights of any of the parties
hereto which have accrued prior to such termination and shall not affect any provision of this
Agreement which is expressly or by implication provided to come into effect on or to continue
in effect after such termination.
	 
	18.4	 	The information rights as set out in clause 12.1 shall terminate upon the Company’s first
underwritten public offering or the date the Company becomes subject to the periodic reporting
requirements of the relevant exchange regulations.

	19.	 	NON-COMPETITION AND OTHER RESTRICTIONS
	 
	19.1	 	None of the Shareholders shall, at any time whilst it is beneficially interested in any
Shares of the Company or for a period of one (1) year from the date on which such Shareholder
ceases to be beneficially interested in the Shares, do or permit to be done any of the
following without the prior written consent of the other Shareholder(s):

	 	(a)	 	either solely or jointly with or on behalf of any person directly or
indirectly carry on or be engaged or interested in or assist any person in carrying on
any business competing with the Business;
	 
	 	(b)	 	solicit or assist any person in soliciting the custom of any person who is or
has been at any time during the term of this Agreement, a customer of the Company, for
the purpose of offering to such customer, goods or services similar to or competing
with those of the Business;
	 
	 	(c)	 	solicit or entice away or endeavour to solicit or entice away or assist any
person to solicit or entice away or endeavour to solicit or entice away any Director
or employee of the Company or of any subsidiary of the Company, but without

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	 	 	 	prejudice to the right of such Shareholder to terminate arrangements under which
any of its staff are seconded to the Company; or
	 
	 	(d)	 	cause or permit any person directly or indirectly under its control to do any
of the foregoing acts or things.

	 	 	Provided that nothing herein shall preclude or restrict either Shareholder(s) or their
respective subsidiaries from:

	 	(i)	 	carrying on any activity carried on during the period of twelve (12) months
immediately preceding the date of this Agreement; or
	 
	 	(ii)	 	offering any service or goods similar to those previously supplied as part of
the Business but subsequently discontinued and not supplied by the Company at the time
when such similar service or goods are offered.

	19.2	 	Nothing in this clause 19 shall preclude or restrict IIPL, Global Star and GigaMedia from
either solely or jointly with any person directly or indirectly be engaged or interested in
any business competing with the Business by reason of its participation, whether via an equity
stake or otherwise, in such business provided that:

	 	(j)	 	the relevant party has declared its interests in the competing business;
	 
	 	(ii)	 	the relevant party signs a confidentality undertaking in favour of the Company
not to disclose any confidential or proprietary information of the Company to the
parties involved in the competing business; and
	 
	 	(iii)	 	the relevant party and the director appointed by such relevant party abstains
from voting on resolutions and participating in discussions of the Company which may:

	 	(a)	 	provide the competing business the relevant party is engaged or
interested in with a competitive advantage; or
	 
	 	(b)	 	cause the Company to compete with the competing business the
relevant party is engaged or interested in.

	19.3	 	Each Founder and member of the Management undertakes that it shall not, for a period of one
year following the termination of the employment or services of such Founder or member of the
Management:

	 	(a)	 	either solely or jointly with or on behalf of any person directly or indirectly
carry on or be engaged or interested in or assist any person in carrying on any
business competing with the Business;
	 
	 	(a)	 	solicit or assist any person in soliciting the custom of any person who is or
has been at any time during the term of this Agreement, a customer of the Company, for
the purpose of offering to such customer, goods or services similar to or competing
with those of the Business;
	 
	 	(b)	 	solicit or entice away or endeavour to solicit or entice away or assist any
person to solicit or entice away or endeavour to solicit or entice away any Director or
employee of the Company or of any subsidiary of the Company, but without prejudice to
the right of such Shareholder to terminate arrangements under which any of its staff
are seconded to the Company; or

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	 	(c)	 	cause or permit any person directly or indirectly under its control to do any
of the foregoing acts or things.

	19.4	 	Each undertaking contained in clause 19.1 shall be read and construed independently of the
other covenants therein contained so that if one or more should be held to be invalid as an
unreasonable restraint of trade or for any other reason whatsoever, then the remaining
covenants shall be valid to the extent that they are not held to be so invalid.
	 
	19.5	 	While the covenants in clause 19.1 are considered by the parties to be reasonable in all the
circumstances, if one or more should be held invalid as an unreasonable restraint of trade or
for any other reason whatsoever, but would have been held valid if part of the wording thereof
had been deleted or the period thereof reduced or the range of activities or area dealt with
thereby reduced in scope, the said covenants shall apply with such modifications as may be
necessary to make them valid and effective.
	 
	19.6	 	Each Founder and member of the Management agrees that it shall not, within a period of (a)
three years or (b) one year after the listing of the Shares on a recognised stock exchange,
whichever is earlier, directly or indirectly: (1) offer, sell, transfer, give or otherwise
dispose of, (2) grant an option, right or warrant to purchase in respect of, (3) charge,
mortgage, pledge or otherwise encumber or (4) enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the legal, beneficial or economic
consequences of ownership of, all or any of the Shares held, whether directly or indirectly,
by such Founder or member of the Management or any interest therein, or (5) enter into any
agreement with a view to effecting any of the foregoing.

	20.	 	REPRESENTATIONS AND WARRANTIES
	 
	20.1	 	Each of the parties acknowledges that it has entered into this Agreement in full reliance on
the representations made by each of the other parties in the following terms and each party
now warrants to each of the other parties:

	 	(a)	 	it is a duly established legal entity of good standing in its country of
incorporation and has the power and authority to enter into, exercise its rights and
perform and comply with its obligations under this Agreement;
	 
	 	(b)	 	all actions, conditions and things required to be taken, fulfilled or done
(including the obtaining of any necessary consents and permits) in order (i) to enable
it lawfully to enter into, exercise its rights and perform and comply with its
obligations under this Agreement; and (ii) to ensure that those obligations that are
valid, legally binding and enforceable have been taken, fulfilled or done;
	 
	 	(c)	 	no order has been made or petition presented for its bankruptcy/insolvency;
	 
	 	(d)	 	no composition in satisfaction of its debts, or scheme of arrangement of its
affairs, or compromise or arrangement between it and its creditors and/or members of
any class of its creditors and/or members, has been proposed, sanctioned or approved;
	 
	 	(e)	 	no distress, distraint, charging order, garnishee order, execution or other
process has been levied or applied for in respect of the whole or any part of any of
its property, assets and/or undertaking; and
	 
	 	(f)	 	its obligations under this Agreement are valid, binding and enforceable.

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	21.	 	FORCE MAJEURE
	 
	21.1	 	If either party hereto is temporarily rendered unable, wholly or in part, by Force Majeure
(as defined below) to perform its duties or accept performance by the other party under this
Agreement, it is agreed that the affected party shall within fourteen (14) days of the
occurrence of the Force Majeure give written notice to the other party, setting out full
particulars of such Force Majeure. The duties of the party affected by such Force Majeure
shall, with the approval of the other party, be suspended during the continuance of the
disability so caused, but for no longer period, and such cause shall as far as possible be
removed with all reasonable despatch. None of the parties hereto shall be responsible for
delay caused by Force Majeure. No claim for damage or any other remedy shall arise out of any
breach of, or any failure or delay to perform any of the obligations arising under this
Agreement, if such breach, delay or failure is caused by a Force Majeure event.
	 
	21.2	 	For the purpose of this clause 21, “Force Majeure” shall mean act of God, restraint of
government (including compliance by any party with any law, regulation, order or other rules
having force of law or intervention or action by any state or federal authority) or by any
person representing any such authority, strikes, lockouts, industrial disturbances,
explosions, fires, floods, earthquakes, storms, lightning and any other causes similar to the
kind herein enumerated which are beyond the control of either party and which by the exercise
of due care and diligence, neither party is able to overcome.

	22.	 	ARTICLES OF ASSOCIATION
	 
	 	 	In the event of any conflict between the provisions of this Agreement and the Articles,
this Agreement shall prevail and the parties shall wherever necessary procure the Articles
to be amended to reflect the provisions of this Agreement.

	23.	 	CONFIDENTIALITY
	 
	23.1	 	No party shall divulge or communicate to any person (other than those whose province it is to
know the same or with proper authority) or use or exploit for any purpose whatsoever, any of
the trade secrets or confidential knowledge or information of the Company or any of the other
parties which the first-mentioned party may receive or obtain as a result of entering into
this Agreement, and each party shall use its reasonable endeavours to prevent its employees or
agents if any from so doing. This restriction shall continue to apply without limit in point
in time, but shall cease to apply to information or knowledge which may properly come into the
public domain through no fault of the relevant party.
	 
	23.2	 	For the avoidance of doubt, the terms and conditions of the transaction as set forth in the
Subscription Agreement shall be considered confidential information and shall not be disclosed
by any party hereto to any third party except in accordance with clause 23.3.
	 
	23.3	 	Notwithstanding the foregoing, any party may disclose:

	 	(a)	 	the financing terms of their investment in the Company to its current or bona
fide prospective, investors, partners, limited partners, shareholders, employees,
investment bankers, lenders, accountants and attorneys;
	 
	 	(b)	 	such information that may be required to be disclosed pursuant to any
competent governmental or statutory authority or pursuant to statute, rules or
regulations of any relevant regulatory body; and

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	 	(c)	 	any information which is required to be disclosed pursuant to any legal
process used by any court or tribunal in Singapore or elsewhere.

	 	 	Any party disclosing information pursuant to this clause 23.3 shall exercise reasonable
efforts to obtain reliable assurance that such information disclosed shall be kept
confidential.
	 
	23.4	 	Notwithstanding the foregoing, in the event that IIPL is requested by any entity or person
associated with the Singapore Government in connection with such entity or person’s
association with the Singapore Government to disclose the financing terms or any other
information relating to the issuance and purchase of Class A Shares to any entity or persons
associated with the Singapore Government, IIPL shall not be required to seek a protective
order, confidential treatment or other remedy with respect to such disclosure, and IIPL shall
not be required to provide notice to the parties prior to such disclosure.
	 
	23.5	 	Without limiting the generality of other provisions in clause 23, in the event that any party
is requested by regulatory authorities or becomes legally compelled (including, without
limitation, pursuant to the relevant securities laws and regulations) to disclose the
existence of this Agreement and other relevant agreements, any of the exhibits and schedules
attached to such agreements, or any of the financing terms hereof and thereof in contravention
of the provisions of clause 23, such party (the “Disclosing Party”) shall, where applicable,
provide the other parties (the “Non-Disclosing Parties”) with prompt written notice of that
fact. In such event, the Disclosing Party shall furnish only that portion of the information
which is legally required to be disclosed and shall exercise reasonable efforts to keep
confidential such information to the extent reasonably requested by any Non-Disclosing Party.

	24.	 	CONTINUING EFFECTS OF THIS AGREEMENT
	 
	24.1	 	This Agreement shall be binding on and shall enure for the benefit of each Shareholder’s
successors and assigns.
	 
	24.2	 	No Shareholder may assign or transfer any of its rights or obligations under this Agreement
without the prior written consent of the other Shareholders.

	25.	 	COUNTERPARTIES
	 
	 	 	This Agreement may be signed in any number of counterparts and by the parties on separate
counterparts, each of which when duly executed shall be an original but all the
counterparts shall together constitute one and the same document.

	26.	 	NOTICES
	 
	26.1	 	Any notice, demand or other communication required or permitted to be given or given in
connection with this Agreement shall be made in writing and may be:

	 	(a)	 	delivered by hand;
	 
	 	(b)	 	sent by registered post;
	 
	 	(c)	 	transmitted by facsimile; or
	 
	 	(d)	 	transmitted by telex;

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	 	 	at the address, facsimile or telex numbers and marked for the attention of the person(s)
(if any) set out in the execution pages of this Agreement or to such other address,
facsimile or telex numbers or person(s) as any party hereto may have notified to the other
parties hereto in writing at least seven (7) Business Days in advance of such change:
	 
	26.2	 	Each notice, demand or other communication under this Agreement shall be deemed to be
received by the recipient and duly served:

	 	(a)	 	if delivered by hand, at the time of delivery;
	 
	 	(b)	 	if sent by post, seven (7) days after posting; or
	 
	 	(c)	 	if sent by facsimile or telex, be deemed to have been received upon receipt
by the sender of a facsimile transmission report (or other appropriate evidence) that
the facsimile has been transmitted to the addressee;

	 	 	as the case may be, Provided that if any of the aforesaid dates when the communications are
deemed to be received and duly served fall on a day which is not a Business Day, the date
on which such communications are deemed to be received and duly served shall be on the
Business Day immediately following upon the said dates.

	27.	 	MISCELLANEOUS
	 
	27.1	 	Each party shall bear its own costs and expenses incurred in connection with the preparation,
negotiation, finalisation and execution of this Agreement.
	 
	27.2	 	Unless otherwise provided for in this Agreement, this Agreement and the Subscription
Agreement (where applicable) constitutes the entire complete and exclusive agreement and
understanding between the parties in connection with the conduct of the Business and the
operations of the Company and supersedes all prior representations, arrangements,
understandings and agreements thereon. No party has relied on any representation,
arrangement, understanding or agreement (whether written or oral) not expressly set out or
referred to in this Agreement or the Subscription Agreement.
	 
	27.3	 	Notwithstanding that any provision of this Agreement may prove to be illegal, void, invalid
or unenforceable, such provision shall be deemed to be deleted from this Agreement and the
remaining provisions of this Agreement shall continue in full force and effect.
	 
	27.4	 	Each Shareholder agrees to exercise its voting rights in the Company and to take such other
steps as lie within its power to procure, that the Company shall perform and observe the
provisions of this Agreement.
	 
	27.5	 	No purported variation, modification, amendment or cancellation of this Agreement shall be
effective unless made in writing and signed by all Shareholders.
	 
	27.6	 	Any waiver of any breach of this Agreement shall not be deemed to apply to any succeeding
breach of the provision or of any other provision of this Agreement. No failure to exercise
and no delay in exercising on the part of any of the parties hereto any right, power or
privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise
of any right, power or privilege preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies otherwise provided by
law.

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	27.7	 	Nothing in this Agreement shall constitute a partnership or establish a relationship of
principal and agent or any other relationship of a similar nature between or among any of the
parties.
	 
	27.8	 	The parties do not intend that any term of this Agreement shall be enforceable, by virtue of
the Contract (Rights of Third Parties) Act, Chapter 53B of Singapore by any person who is not
a party to this Agreement.
	 
	27.9	 	This Agreement is governed by, and shall be construed in accordance with, the laws of
Singapore.
	 
	27.10	 	Each party hereto hereby submits to the jurisdiction of the Singapore Courts but this
Agreement may be enforced in any court of competent jurisdiction. Each Shareholder of the
Company irrevocably:

	 	(a)	 	submits to the non-exclusive jurisdiction of the courts of Singapore in
relation to any legal action or proceedings arising out of or in connection with this
Agreement;
	 
	 	(b)	 	consents to service of process in any manner permitted by the laws of
Singapore;
	 
	 	(c)	 	waives any objections on the ground of venue or forum non conveniens or any
similar grounds;
	 
	 	(d)	 	consents generally to relief being given against it by way of specific
performance or for the recovery of any property whatsoever and to its property being
subject to any process for the enforcement of a judgement or any other remedy
available under the laws of Singapore; and
	 
	 	(e)	 	waives and agrees not to claim any immunity from all forms or execution or
attachment to which its property is now or may hereafter become entitled under the
laws of any jurisdiction and declares that such waiver shall be effective to the
fullest extent permitted by such laws.

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IN WITNESS whereof this Agreement has been entered into the day and year first above written.

	 	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	 
	MANAGEMENT CAPITAL
 INTERNATIONAL LTD

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	
	 
	 	 	 	 	 	 
	Address

	 	 	:	 	 	28 Maxwell Road #04-01

Red Dot Traffic
	 

	 	 	 	 	 	Singapore 069120
	Facsimile No.

	 	 	:	 	 	(65) 6294 9345
	Contact Person

	 	 	:	 	 	Ong Toon Wah

	 	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	 
	INFOCOMM INVESTMENTS PTE LTD

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	
	 
	 	 	 	 	 	 
	Address

	 	 	:	 	 	6 Temasek Boulevard #29-00 Suntec Tower 4
	 

	 	 	 	 	 	Singapore 038986
	Facsimile No.

	 	 	:	 	 	(65) 6211 2213
	Contact Person

	 	 	:	 	 	 

	 	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	 
	COMMERZBANK INFOCOMM
	 	 	)	 	 	 
	SEGREGATED PORTFOLIO

	 	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	
	 
	 	 	 	 	 	 
	Address

	 	 	:	 	 	care of 8 Shenton Way #36-01 Temasek Tower
	 

	 	 	 	 	 	Singapore 068811
	Facsimile No.

	 	 	:	 	 	(65) 6225 6234
	Contact Person

	 	 	:	 	 	Cheong Kum Hong/Choo Hsun Yang

34

 

EXECUTION COPY

	 	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	 
	GLOBAL STAR INTERNATIONAL
	 	 	)	 	 	 
	DEVELOPMENT LIMITED

	 	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	
	 
	 	 	 	 	 	 
	Address

	 	 	:	 	 	34/F, The Lee Gardens, 33 Hysan Avenue,
	 

	 	 	 	 	 	Causeway Bay, Hong Kong
	Facsimile No.

	 	 	:	 	 	 
	Contact Person

	 	 	:	 	 	Jiwei

	 	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	 
	ETHERFAST PTE LTD

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	
	 
	 	 	 	 	 	 
	Address

	 	 	:	 	 	28 Maxwell Road, Red Dot Traffic, #04-01
	 

	 	 	 	 	 	Singapore 069120
	Facsimile No.

	 	 	:	 	 	(65) 6294 9345
	Contact Person

	 	 	:	 	 	Lee Teng Teng

35

 

EXECUTION COPY

	 	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	 
	GIGAMEDIA ASIA PACIFIC LIMITED

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	
	 
	 	 	 	 	 	 
	Address

	 	 	:	 	 	14 Floor, 122 TunHwa North Road, Taipei,
	 

	 	 	 	 	 	Taiwan ROC
	Facsimile No.

	 	 	:	 	 	+8862-8770-7576
	Contact Person

	 	 	:	 	 	Chief Executive Officer, Arthur Wang and
	 

	 	 	 	 	 	General Counsel, Jennifer Tseng

	 	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	 
	INFOCOMM ASIA HOLDINGS PTE. LTD.

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	
	 
	 	 	 	 	 	 
	Address

	 	 	:	 	 	28 Maxwell Road Red Dot Traffic
	 

	 	 	 	 	 	#04-01 Singapore 069120
	Facsimile No.

	 	 	:	 	 	(65) 6294 9345
	Contact Person

	 	 	:	 	 	Ong Toon Wah

36

 

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SCHEDULE 1

The Management of the Company is as follows:

Ong Toon Wah (Chief Executive Officer)

Richard Chua Choon Kiat (Business Development Officer)

David Heng Wee Koon (Technical Director)

Roderick Chia Yeow Kheng (Chief Technology Officer)

Yeo Yeoh Chuan (Vice President, Marketing & Strategy)

Lee Jinsi (Chief Strategy Operations Officer)

37EX-4.52 SHAREHOLDERS' AGREEMENT DATED FEB 2, 2007

Table of Contents

Exhibit 4.52

EXECUTION COPY

DATED
THE 2 DAY OF FEBRUARY 2007

BETWEEN

MANAGEMENT CAPITAL INTERNATIONAL LTD

INFOCOMM INVESTMENTS PTE LTD

COMMERZBANK INFOCOMM SEGREGATED PORTFOLIO

GLOBAL STAR INTERNATIONAL DEVELOPMENT LIMITED

ETHERFAST PTE LTD

GIGAMEDIA ASIA PACIFIC LIMITED

BODHI CHINA AND INDIA INVESTMENTS LLC

AND

INFOCOMM ASIA HOLDINGS PTE. LTD.

 

SHAREHOLDERS’ AGREEMENT

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	CLAUSE NO.	 	HEADING	 	PAGE NO.
	 
	 
	 	 	 	 
	1.
	 	DEFINITIONS	 	2
	2.
	 	SHARE CAPITAL AND ALLOTMENT OF SHARES	 	6
	3.
	 	CONVERSION RIGHTS	 	7
	4.
	 	ANTIDILUTION ADJUSTMENTS	 	7
	5.
	 	REDEMPTION OF CLASS A SHARES	 	8
	6.
	 	REDEMPTION OF CLASS B SHARES	 	8
	6A.
	 	LIDUIDATION PREFERENCE	 	8
	7.
	 	LISTING AND AUTOMATIC CONVERSION	 	9
	8.
	 	BOARD OF DIRECTORS	 	10
	9.
	 	GENERAL MEETINGS	 	13
	10.
	 	BUSINESS OF THE COMPANY	 	14
	11.
	 	FINANCE	 	15
	12.
	 	MANAGEMENT, ACCOUNTS AND INFORMATION	 	16
	13.
	 	TRANSFER OF SHARES	 	17
	14.
	 	COMPULSORY TRANSFERS	 	20
	15.
	 	TAG-ALONG RIGHTS	 	22
	16.
	 	BRING ALONG RIGHTS	 	23
	17.
	 	REGISTRATION RIGHTS	 	23
	18
	 	DURATION AND TERMINATION	 	27
	19.
	 	NON-COMPETITION AND OTHER RESTRICTIONS	 	27
	20.
	 	REPRESENTATIONS AND WARRANTIES	 	29
	21.
	 	FORCE MAJEURE	 	30
	22.
	 	ARTICLES OF ASSOCIATION	 	30
	23.
	 	CONFIDENTIALITY	 	30
	24.
	 	CONTINUING EFFECTS OF THIS AGREEMENT	 	31
	25.
	 	COUNTERPARTIES	 	32
	26.
	 	NOTICES	 	32
	27.
	 	MISCELLANEOUS	 	32
	SCHEDULE 1	 	38

 

Table of Contents

THIS
AGREEMENT is made on the 2nd day of February 2007

BETWEEN:

	(1)	 	Management Capital International Ltd, a company incorporated in the British Virgin Islands
and having its registered office at Portcullis Trustnet Chambers, P.O. Box 3444, Road Town,
Tortola, British Virgin Islands (“MCIL”);
	 
	(2)	 	Infocomm Investments Pte Ltd (Company Registration Number 199608120R), a company
incorporated in Singapore and having its registered office at 6 Temasek Boulevard #29-00
Suntec Tower 4 Singapore 038986 (“IIPL”);
	 
	(3)	 	Commerzbank Infocomm Segregated Portfolios, a specific segregated portfolio within Commerz
Asia Best SPC (Company Registration Number CB-142661), a segregated portfolio company
incorporated in the Cayman Islands and having its registered office at Coconut Villa 2
Jennifer Drive P.O. Box 10211 APO Grand Cayman BW1 (“CISP”);
	 
	(4)	 	Global Star International Development Limited (Company Registration Number 1032166), a
company which is a wholly owned subsidiary of The9 Limited and incorporated in Hong Kong
Special Administrative Region and having its registered office at 34/F, The Lee Gardens, 33
Hysan Avenue, Causeway Bay, Hong Kong (“Global Star”);
	 
	(5)	 	Etherfast Pte Ltd (Company Registration Number 200604316G), a company incorporated in
Singapore and having its registered office at 28 Maxwell Road Red Dot Traffic #04-01
Singapore 069120 (“Etherfast”); and
	 
	(6)	 	GigaMedia Asia Pacific Limited (IBC Number 1068168), a company incorporated in the British
Virgin Islands and having its registered office at Overseas Management Company Trust
(B.V.I.) Ltd., OMC Chambers, P.O. Box 3152, Road Town, Tortola, British Virgin Islands
(“GigaMedia”);
	 
	(7)	 	Bodhi China and India Investments LLC, a limited liability company incorporated in the
Republic of Mauritius and having its registered office at International Financial Services
Limited, IFS Court, TwentyEight, Cybercity, Ebene, Mauritius (“SoftBank”);

collectively referred to as “Shareholders”; and

	(7)	 	Infocomm Asia Holdings Pte. Ltd. (Company Registration Number 200414722H), a company
incorporated in Singapore and having its registered office at 28 Maxwell Road Red Dot
Traffic #04-01 Singapore 069120 (the “Company”),

all the parties above shall be referred to individually as a “Party” and collectively as the
“Parties”.

WHEREAS:

	(A)	 	The Company has been incorporated for the purpose of engaging in the Business (as defined
hereunder).
	 
	(B)	 	The shareholding structure of the Company as at the Completion Date, based on a fully
converted basis, will be as follows:

1

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number of Ordinary	 
	 	 	 	 	 	 	Shares on a	 
	Shareholder	 	Type of Shares held	 	 	Converted Basis	 
	Management Capital International Limited
	 	Ordinary Shares	 	 	150,000	 
	Etherfast Pte Ltd
	 	Ordinary Shares	 	 	100,000	 
	Infocomm Investments Pte Ltd
	 	Class A Shares	 	 	300,000	 
	Commerzbank Infocomm Segregated
Portfolio
	 	Class A Shares	 	 	300,000	 
	Global Star International Development
Limited
	 	Class A Shares	 	 	200,000	 
	Gigamedia Asia Pacific Limited
	 	Class B Shares	 	 	500,000	 
	Bodhi China and India Investments LLC
	 	Class B Shares	 	 	208,881	 
	 
	 	 	 	 	 	 	 	 
	Total number of Shares
	 	 	 	 	 	 	1,758,881	 

	(C)	 	This Agreement sets forth the complete and entire agreement between the parties and
supercedes and replaces any prior shareholders’ agreements entered into among the parties,
whether oral or in writing.
	 
	(D)	 	The parties hereto wish to enter into this Agreement to regulate the affairs of the Company
and the relationship between them as Shareholders of the Company.
	 
	(E)	 	It is understood that each of the parties have entered into this Agreement in reliance upon
the participation of other parties on the terms and subject to the conditions set out in this
Agreement.

NOW IT IS HEREBY AGREED as follows:

	1.	 	DEFINITIONS
	 
	 	 	In this Agreement unless the subject or context otherwise requires:
	 
	 	 	“Act” means the Companies Act, Chapter 50 of Singapore;
	 
	 	 	“Antidilution Exceptions” shall have the meaning ascribed under the clause 4 of this
Agreement;
	 
	 	 	“Applicable Securities Law” means (i) with respect to any offering of securities in the
United States of America, or any other act or omission within that jurisdiction, the
securities law of the United States, as amended from time to time, including the Exchange
Act and the Securities Act, and any applicable law of any state of the United States of
America, and (ii) with respect to any offering of securities in any jurisdiction other than
the United States of America, or any related act or omission in that jurisdiction, the
applicable laws of that jurisdiction;
	 
	 	 	“Articles” means the Articles of Association of the Company, substantially in the form set
out in the Annex to the Subscription Agreement and as may be further amended from time to
time;
	 
	 	 	“Auditors” means such approved company auditors acceptable to the parties hereto as may at
the given time be the auditors of the Company;

2

Table of Contents

	 	 	“Board” means the board of Directors for the time being of the Company;
	 
	 	 	“Business” means the business to be carried on by the Company, including but not limited to
the operation and distribution of online games by way of securing the exclusive distribution
rights for online internet games or mobile games, for distribution in the South Asia region
and to make strategic investments in operating hubs;
	 
	 	 	“Business Day” means any day in Singapore except for Saturdays and Sundays and days which
have been gazetted as public holidays in Singapore;
	 
	 	 	“Chairman” means the Chairman of the Board and the Company;
	 
	 	 	"Class A Conversion Rate” means the ratio at which Class A Shares are converted into
Ordinary Shares which shall be ten (10) Class A Shares for one (1) Ordinary Share, subject
to such adjustments as may be made from time to time in accordance with this Agreement and
the Articles;
	 
	 	 	"Class A Issue Price” means US$1.00 for each Class A Share;
	 
	 	 	“Class A Shares” means such number of redeemable, convertible, preference shares in the
capital of the Company, each bearing the terms and conditions as set out in the Articles;
	 
	 	 	“Class B Conversion Rate” means the ratio at which Class B Shares are converted into
Ordinary Shares, which shall initially be one (1) Class B Share for one (1) Ordinary Share,
subject to such adjustments as may be made from time to time in accordance with this
Agreement and the Articles;
	 
	 	 	“Class B Issue Price” means US$20.00 for each Class B Share;
	 
	 	 	“Class B Shares” means such number of redeemable, convertible, preference shares in the
capital of the Company, each bearing the terms and conditions as set out in the Articles;
	 
	 	 	“Commission” means (i) with respect to any offering of securities in the United States of
America, the Securities and Exchange Commission of the United States of America or any other
federal agency at the time administering the Securities Act, and (ii) with respect to any
offering of securities in a jurisdiction other than the United States of America, the
relevant regulatory body of the jurisdiction with authority to supervise and regulate the
sale of securities in that jurisdiction;
	 
	 	 	"Completion Date” has the meaning ascribed to it by the Subscription Agreement;
	 
	 	 	"Conversion Rate” means the Class A Conversion Rate and the Class B Conversion Rate;
	 
	 	 	“Converted Basis” means such number of Ordinary Shares held as a result of the conversion of
Preference Shares into Ordinary Shares of the Company at the Class A Conversion Rate or the
Class B Conversion Rate (as the case may be), pursuant to the terms and conditions set out
in this Agreement and in the Articles;
	 
	 	 	“CUSIP Number” means the number assigned to identify securities in North America as
maintained by the Committee on Uniform Securities and Identification Procedures;
	 
	 	 	“Directors” means the proposed directors of the Company appointed pursuant to clause 8,
including, where applicable, alternate directors and “Director” refers to any of them;

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	 	 	“Form F-3” means such form under the Securities Act as in effect on the date hereof or any
registration form under the Securities Act subsequently adopted by the Commission that
permits inclusion or incorporation of substantial information by reference to other
documents filed by the Company with the Commission. Form F-3, as applied in this Agreement,
could be either Form F-3, if the Company is deemed a foreign private issuer under the
Securities Exchange Act of 1934, as amended, or Form S-3, if the Company is deemed a
domestic issuer under such Act;
	 
	 	 	“Founder” means the shareholder(s) of MCIL as at the Completion Date;
	 
	 	 	“Holder” means the holders of Class B Shares;
	 
	 	 	“Initiating Holders” means Class B Shareholder(s) holding, individually or in the aggregate,
at least 25% of the Class B Shares on a Converted Basis;
	 
	 	 	"Investment Budget” means the investment budget to be approved by the Investment Committee
that will be in line with the Use of Funds;
	 
	 	 	"Management” means the management team of the Company as set out in Schedule 1 of this
Agreement and such other persons who may from time to time be appointed as members to the
management team of the Company and who become shareholders of MCIL;
	 
	 	 	“net tangible asset value” means the total tangible assets value of the Company less total
liabilities (including deferred taxation), which is equal to the shareholders’ equity, which
comprises the following:

	 	(a)	 	the amount paid up or credited as paid up on the issued share capital of the
Company; and
	 
	 	(b)	 	the amounts standing to the credit of the reserves of the Company as recorded
in the accounts of the Company, howsoever described, including:

	 	(i)	 	any share premium account;
	 
	 	(ii)	 	any capital redemption reserve fund; and
	 
	 	(iii)	 	any amount standing to the credit of the profit and loss
account, all as shown by the accounts of the Company but after:

	 	(aa)	 	deducting therefrom (if not other deducted) any
amounts attributable to intangible assets including goodwill and the
amount of any debit balance on the profit and loss account in the
accounts of the Company; and
	 
	 	(bb)	 	making such other adjustments (if any) as the
Auditors consider appropriate in accordance with generally accepted
accounting principles;

	 	 	“Ordinary Shares” means the ordinary shares in the capital of the Company;
	 
	 	 	“Preference Shareholders” means collectively, the holders of Class A Shares and the
holders of Class B Shares, and “Preference Shareholder” refers to any of them;
	 
	 	 	“Preference Shares” means the Class A Shares and the Class B Shares;

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	 	 	“Person” means any individual, body corporate, corporation, partnership, limited
partnership, proprietorship, association, limited liability company, trust, estate,
enterprise or other entity;
	 
	 	 	“Pro Rata” means:

	 	(a)	 	in relation to any Preference Shareholder, a fraction, the numerator of which
shall be the number of Preference Shares on a Converted Basis held by such holder and
the denominator shall be the total number of Preference Shares on a Converted Basis
issued and outstanding as of the date of such calculation; and
	 
	 	(b)	 	in relation to all Shareholders, a fraction, the numerator of which shall be
the number of Shares on a Converted Basis held by such holder and the denominator
shall be the number of Shares on a Converted Basis issued and outstanding as of the
date of such calculation.

	 	 	“Qualifying Buy-Back” means a share buy-back undertaken by the Company in accordance
with the applicable provisions of Singapore law;
	 
	 	 	“Registrable Securities” means the Preference Shares, including such Ordinary Shares
issuable upon the conversion of the Preference Shares;
	 
	 	 	“Registration” means a registration effected by preparing and filing a Registration
Statement and the declaration or ordering of the effectiveness of the Registration
Statement; and the terms “Register” and “Registered” have the same meanings concomitant with
the foregoing;
	 
	 	 	"Registration Statement” means a registration statement prepared on Form F-1, F-2 or F-3
under the Securities Act, or on any comparable form in connection with registration in a
jurisdiction other than the United States;
	 
	 	 	“Securities Act” means the United States Securities Act of 1933, as amended from time to
time;
	 
	 	 	“Secretary” means the secretary for the time being of the Company;
	 
	 	 	“Shareholders” means IIPL, CISP, MCIL, Global Star, Etherfast, GigaMedia and Softbank;
	 
	 	 	“Shareholder Proportions” means, in relation to a Shareholder, the proportion which the
number of Ordinary Shares (on a Converted Basis) set against the name of each Shareholder in
the tables as set out in Recital B (the “Table”), as the case may be, bears to the total
number of Ordinary Shares in the Company (on a Converted Basis) as set out in the Table,
subject to changes in share capital of the Company as permitted by the terms and conditions
of this Agreement, the subscription agreements entered into between each of the Shareholders
and the Company and the Articles;
	 
	 	 	“Shares” means the Class A Shares, the Class B Shares and the Ordinary Shares;
	 
	 	 	“South Asia Region” includes Singapore, Malaysia, Indonesia, Philippines, Thailand, Vietnam
and other territories as agreed by the Parties from time to time;
	 
	 	 	“Subscription Agreement” means the subscription agreement to be entered into between
Softbank and the Company at the date hereof for the subscription of 208,881 Class B Shares
on the terms and subject to the conditions set out therein;

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	 	 	“S$” means the lawful currency of Singapore;
	 
	 	 	“US$” means the lawful currency of the United States of America; and
	 
	 	 	“Use of Funds” has the meaning ascribed to it under clause 2.3 of the Subscription
Agreement.
	 
	 	 	In this Agreement:

	 	(a)	 	words importing the singular include the plural and vice versa;
	 
	 	(b)	 	words importing a gender include every gender; and
	 
	 	(c)	 	references to persons shall be construed as including references to an
individual, firm, company, corporation, trust, unincorporated body of persons or any
State or government or any agency thereof.

	 	 	Headings are for ease of reference only and have no legal effect. References to clauses are to
clauses of this Agreement.
	 
	 	 	Any reference to a statutory provision shall include such provision as from time to time
modified, amended or re-enacted so far as such modification, amendment or re-enactment applies
or is capable of applying to any transactions entered into hereunder.

	2.	 	SHARE CAPITAL AND ALLOTMENT OF SHARES
	 
	2.1	 	As at the Completion Date, the Company will have an issued share capital of 250,000 Ordinary
Shares, 8,000,000 Class A Shares, and 708,881 Class B Shares.
	 
	2.2	 	The Company shall not issue any further shares whether forming part of its unissued shares or
new shares. However, if the Board determines in good faith and after due commercial
considerations that additional shareholders’ equity is necessary, the Shareholders shall cause
the Company to issue such number of additional shares as the Board may recommend. Such
additional shares shall be offered in the first instance to Preference Shareholders on a Pro
Rata basis immediately prior to such proposed increase in the issued share capital of the
Company and the Preference Shareholders may elect to subscribe for such number of additional
shares. In offering such
shares in the first instance to the holders of the Preference Shares,
the offer shall be made by written notice specifying the number of such additional shares
offered and the price per share, and reasonably limiting the time within which the offer, if
not accepted, will be deemed to be declined (which shall not be less than 21 Business Days)
and after the expiration of that time or on the receipt of an intimation from any Shareholder
to whom the offer is made that it declines to accept the additional shares offered, the other
Shareholders shall be entitled to subscribe to all such additional shares and if more than one
other Shareholder desires to so subscribe, then such additional shares will be allocated pro
rata between them in the proportion that their respective shareholdings in the Company bear to
one another on a Converted Basis. Any remaining Shares not subscribed by the Shareholders
pursuant to this clause may be offered by the Company to third parties at the same price per
share offered to the Shareholders previously, or shall otherwise be offered to the
Shareholders again in the manner set out in this clause 2.2. Prior to the subscription of any
shares in the capital of the Company, each new shareholder of the Company shall execute a deed
of ratification and accession under which it agrees to be bound by and be entitled to the
benefit of this Agreement. Such right shall terminate at or upon a Public Offering
(hereinafter defined).

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	2.3	 	The foregoing right would not apply to:

	 	(a)	 	the issuance by the Company of Ordinary Shares (or any options or rights
convertible into Ordinary Shares) to employees, officers, directors or consultants of
the Company pursuant to share option plans or other share incentive arrangements
approved by the Board;
	 
	 	(b)	 	securities issued by the Company in connection with any merger or acquisition
event undertaken by the Company;
	 
	 	(c)	 	Ordinary Shares issued in connection with any subdivision, consolidation or
reclassification of Shares;
	 
	 	(d)	 	Ordinary Shares issued upon the conversion or automatic conversion of the
Preference Shares pursuant to clauses 3, 7.2 and 7.3 of this Agreement;
	 
	 	(e)	 	the issuance of equity securities pursuant to a public offering; or
	 
	 	(f)	 	the issuance of equity securities pursuant to an approved management
incentive plan as approved by the Board.

	3.	 	CONVERSION RIGHTS
	 
	 	 	Each Holder shall be entitled, at any time after the Completion Date, at its option, to
convert all or any of the Class B Shares it holds into Ordinary Shares. Each Class B Share
shall be convertible into one Ordinary Share, subject to any adjustments provided in Clause
4 below and the Articles of the Company.

	4.	 	ANTIDILUTION ADJUSTMENTS
	 
	4.1	 	Each of the Parties agrees to procure (insofar as it lawfully can), for so long as any Class
A Shares or Class B Shares are outstanding, that:

	 	(i)	 	in the event of a subdivision, consolidation or reclassification of shares, or
the issuance of Shares by way of a capitalisation of profits and reserves, all necessary
steps will be taken to ensure that the Shareholder Proportions in relation to the
Shareholders remain unchanged (“Proportional Antidilution Protection”), including,
without limiting the generality of the above, making such adjustments to the Conversion
Rate as may be necessary to maintain the Shareholder Proportions amongst the
Shareholders (“Antidilution Adjustments”); and
	 
	 	(ii)	 	in the event that the Company issues any additional Shares or rights or options
to subscribe for Shares (including by way of a rights issue), or any options, rights,
warrants or other securities convertible or exercisable into, or exchangeable for or
redeemable with any Shares in or assets of the Company at a price that is less than the
Class B Issue Price (the “New Issue Price”), the Class B Conversion Rate shall be
adjusted such that the number of Ordinary Shares arising from the conversion of each
Class B Share shall be equal to the Class B Issue Price divided by the New Issue Price.

	4.2	 	Notwithstanding clause 4.1, the following events (“Antidilution Exceptions”) will not trigger
an Antidilution Adjustment:

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	 	(a)	 	the issue of Ordinary Shares upon conversion of any Preference Share pursuant
to the terms of this Agreement; and
	 
	 	(b)	 	Ordinary Shares and/or options that may be issued or registered for issuance to
employees pursuant to a share option plan or other share incentive plan approved by
the Board.

	5.	 	REDEMPTION OF CLASS A SHARES
	 
	5.1	 	Upon receiving a written request from the holders of a majority of the Class A Shares at any
time after the fourth anniversary of 31 May 2005, the Company shall redeem the number of Class
A Shares submitted by such holders for redemption.
	 
	5.2	 	The redemption price for each Class A Share under this clause 5 shall be the Class A Issue
Price, plus interest accrued thereon at the rate of ten per cent (10%) per annum compounded
annually, less any declared and paid dividends (“Class A Redemption Amount”).

	6.	 	REDEMPTION OF CLASS B SHARES
	 
	6.1	 	Each Holder shall have the right, at such holder’s option, by way of a written request to the
Company, to require the Company to redeem in cash the Class B Shares which are not converted,
upon the earlier of (1) the fifth (5th) anniversary from 12 January 2007, and (2)
the redemption of any Class A Shares.
	 
	6.2	 	The redemption price per Class B Share shall be 100 per cent. of the Class B Issue Price,
plus interest accrued thereon at the rate of ten per cent (10%) on the Class B Issue Price per
annum compounded annually, less any declared and paid dividends thereon (the “Redemption
Amount”). In the case of a redemption triggered by the redemption of any Class A Shares, the
Holders shall first be entitled to payment of the Premium Amount in priority to the holders of
Class A Shares, where:

	 	 	 	Premium Amount = A + B
	 
	 	 	 	Where:
	 
	 	 	 	A = (US$20.00 - US$10.00) x number of Class B Shares to be redeemed;
	 
	 	 	 	B = interest accrued on the Class B Shares to be redeemed at the rate of 10% per
annum compounded annually less any declared and paid dividends on such Class B
Shares;
	 
	 	 	 	The remaining Redemption Amount owing to the Holders will be paid to the Holders
pari passu with the Class A Redemption Amounts.

	6.3	 	Each Holder shall also be entitled, at its option, to require the Company to redeem its Class
B Shares in an amount equal to such holder’s Redemption Amount within two (2) weeks of a
change in Control of the Company. For the purposes of this clause, “Control” shall mean the
right to exercise, directly or indirectly, more than 50 per cent of the voting rights
attributable to the shares of the Company.

	6A.	 	LIDUIDATION PREFERENCE

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	 	 	The Parties agree that in the event of any liquidation, dissolution or winding up of
the Company, or on a return of capital (other than a Qualifying Buy-Back) by the Company,
the holders of the Class B Shares shall be entitled to receive, prior to and in preference
to any distribution to the holders of Ordinary Shares, Class A Shares or any other class of
shares, an amount per Class B Share equal to the Class B Issue Price over the Class A Issue
Price, plus all declared but unpaid dividends thereon (the “Preference Amount”). After the
full Preference Amount on all outstanding Class B Shares and the preference amount on the
Class A Shares have been paid, any remaining funds and assets of the Company shall be
distributed Pro Rata amongst all Shareholders.
	 
	 	 	If the Company has insufficient assets to permit payment of the Preference Amount in
full to all Holders, then the assets of the Company shall be distributed ratably to the
Holders in proportion to the Preference Amount each Holder would otherwise be entitled to
receive.

	7.	 	LISTING AND AUTOMATIC CONVERSION
	 
	7.1	 	All the Shareholders agree that the Company shall seek a listing for its shares as soon as
practicable, once it achieves the IPO Targets (as defined below) set out herein.
	 
	7.2	 	All Class A Shares shall be automatically converted into Ordinary Shares, at the then
applicable Class A Conversion Rate, upon:

	 	(a)	 	the closing of an underwritten public offering of shares of the Company
(“Public Offering”) or such other date as may be agreed between the Parties and the
issue manager, at a public offering price per share which satisfies the IPO Targets as
defined in Clause 7.4 below and with a reasonably anticipated aggregate offering size
(before payment of underwriters’ discounts, commissions and offering expenses) of at
least US$15,000,000 (a “Qualified Public Offering” or “QPO”); or
	 
	 	(b)	 	the election of at least 70% of the Class A Shareholders.

	7.3	 	All Class B Shares shall be automatically converted into Ordinary Shares, at the then
applicable Class B Conversion Rate, upon:

	 	(a)	 	the closing of a QPO; or
	 
	 	(b)	 	the election of at least 75% of the Class B Shareholders.

	7.4	 	For the purposes of this clause, unless otherwise agreed by the holders of no less than
seventy-five per cent (75%) of the Ordinary Shares on a fully converted basis and no less than
two-thirds of the Preference Shareholders, the targets for a Public Offering (the “IPO
Targets”) shall be:

	 	(a)	 	two times of the Class B Issue Price per Class B Share for a Public Offering
in 2007;
	 
	 	(b)	 	four times of the Class B Issue Price per Class B Share for a Public Offering
in 2008; or
	 
	 	(c)	 	eight times of the Class B Issue Price per Class B Share for a Public
Offering in 2009 or later.

	7.5	 	Each Preference Shareholder may by written request to the Company at any time after a Public
Offering, require the Company to and the Company shall take all necessary steps and

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	 	 	do all such things as may be necessary to facilitate the sale or transfer or any other
dealings of any Ordinary Shares issued pursuant to a conversion of Preference Shares,
including but without limitation to the generality of the foregoing, making all necessary
applications for such Ordinary Shares to be listed on the exchange on which the Company’s
Shares are listed.

	8.	 	BOARD OF DIRECTORS
	 
	8.1	 	Unless all the Shareholders otherwise agree in writing, the Board shall comprise six (6)
Directors of which one (1) Director will be nominated by IIPL, one (1) Director will be
nominated by CISP, one (1) Director will be nominated by Global Star, one (1) Director will be
nominated by the holders of Ordinary Shares, one (1) Director will be appointed by GigaMedia
and one (1) Director will be appointed by Softbank.
	 
	8.2	 	The first Chairman shall be appointed by the Management and subsequent Chairmen shall be
appointed by a majority vote of the Board.
	 
	8.3	 	The right of appointment of the Directors conferred on the Shareholders referred to in clause
8.1 above shall include the right at any time and from time to time to remove from office and
to determine the period which such persons shall hold office as Director. Whenever a Director
ceases to be a Director for any reason whatsoever, the party which appointed him shall be
entitled to appoint another person to replace him as a Director.
	 
	8.4	 	Any appointment or removal of Directors as aforesaid shall be made in writing and be signed
by the duly authorised officer of the appointor and shall take effect as from the date of its
receipt at the registered office of the Company or on the date of appointment specified in the
notice, whichever is later.
	 
	8.5	 	A Director may at any time and from time to time appoint any other person (other than another
Director) to be his alternate, and to remove such alternate Director. All appointments and
removals of alternate Directors made by any Director shall be in writing under the hand of the
Director making the same and shall take effect as of its receipt at the registered office of
the Company or on the date of appointment specified in the notice, whichever is the later.
Such alternate Director shall be entitled while holding office as such, to receive notices of
Board meetings and to attend and vote at any such Board meetings at which the Director
appointing him is not present and to exercise all the authorities, powers and rights and
perform all the functions of his appointer thereat.
	 
	8.6	 	The quorum for all meetings of the Board shall be four (4) Directors, including at least one
(1) Director appointed by the Holders, each present personally or by his alternate. If within
half an hour after the time fixed for the meeting, the Directors constituting the quorum are
not present, the meeting shall be adjourned and reconvened to discuss the same agenda on the
third working day at the same time of the day and the same venue, and during the reconvened
meeting, any two (2) Directors shall be deemed to form a quorum provided always that three (3)
days’ written notice of each meeting or reconvened meeting shall be given to each Director
entitled to attend such meetings.
	 
	8.7	 	The Shareholders shall use all reasonable endeavours to procure that a quorum is present
throughout each meeting of the Board.
	 
	8.8	 	The Directors may meet at any place for the despatch of their business, adjourn and otherwise
regulate their meetings as they deem fit. A Director may participate at a meeting of Directors
by telephone, teleconference or similar communications equipment or any other form of audio or
visual instantaneous communication by which all persons participating in the meeting are able
to hear and be heard by all participants, without a Director being in the
physical presence of another Director in which event such Director shall be deemed to be

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	 	 	present at the meeting. A Director participating in a meeting in the manner aforesaid may
also be taken into account in ascertaining the presence of a quorum at the meeting. Unless
otherwise agreed unanimously, a Board meeting shall be held at least once every three (3)
months in Singapore.
	 
	8.9	 	At any time, any Director may, and the Secretary on the requisition of a Director shall,
summon a meeting of the Directors. At least seven (7) days’ notice in writing of each meeting
of the Board shall be given to each Director of the Company at the address from time to time
provided by him to the Company for such purpose and such notice shall be accompanied by an
agenda of the matters to be considered at the meeting. Where a Director is absent from
Singapore, such notice may be given by telefax or telex, to a telefax number, or telex number
as the case may be, given by that absent Director to the Secretary. Any Director may waive
notice of any meeting and any such waiver may be retroactive and for this purpose, the
presence of a Director at the meeting shall be deemed to constitute a waiver on his part. No
decision shall be taken on any matter at a meeting of the Board unless notice of such matter
shall have been given in the manner aforesaid or waiver of such notice has been given in
respect of such matter by all of the members of the Board.
	 
	8.10	 	Except as otherwise provided for in clause 8.15(f) of this Agreement, a Director shall not be
prohibited from voting or being counted in a quorum at any Board meeting in respect of any
contract or arrangement in which he is or may be interested provided he has disclosed the
nature of his interest in accordance with applicable law (if any).
	 
	8.11	 	Except as otherwise provided in this Agreement, all resolutions of the Board shall be passed
by a simple majority of the votes of the Directors.
	 
	8.12	 	The Chairman of any meeting of the Board shall have a second or casting vote in case of an
equality of votes.
	 
	8.13	 	A resolution in writing signed by all the Directors appointed to the Company for the time
being shall be as effective as a resolution duly passed at a meeting of the Directors and may
consist of several documents in the like form, each signed by one or more Directors. The
expression “in writing” and “signed” include approval by telefax, telex, cable, telegram,
digital or electronic signature or such other mode of approval or indication of approval as
may be permitted by law by any such Director.
	 
	8.14	 	The Board shall appoint an investment committee (the “Investment Committee”) comprising of
four (4) members, one of whom shall be nominated by IIPL, one by CISP, one by Global Star and
one by GigaMedia. The unanimous approval of the Investment Committee is required for any
investment, including but not limited to, that relating to any online internet game or mobile
game, any capital expenditure of the Company of US$250,000 and above and any other investment
decision by the Company regarding the Use of Funds.
	 
	8.15	 	Notwithstanding the foregoing, the following matters shall require the affirmative vote of
three (3) Directors elected by each of IIPL and Global Star and GigaMedia:

	 	(a)	 	the adoption of the Company’s annual budget (“Annual Budget”) and operating
plan (“Operating Plan”);
	 
	 	(b)	 	any major corporate or financial matters that may either singly or in aggregate
result in a variance of more than fifteen per cent (15%) from the Annual Budget and
Operating Plan approved by the Board;

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	 	(c)	 	any financial or investment commitment or expenditure which either singly or in
aggregate amounts to more than US$150,000 not provided for in the Annual Budget;
	 
	 	(d)	 	any management remuneration plan, hiring dismissal or annual reappointment of
the Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”) or any increase in
the remuneration package of any such executive officer;
	 
	 	(e)	 	the issuance of any management and employee share options or incentive shares;
	 
	 	(f)	 	the entry into any transaction with any director, officer or shareholder of the
Company (or affiliate or relative thereof) involving (i) the disbursement of funds or
transfer of property in the Company or (ii) the formation, termination, extension,
renewal or waiver of any contract;
	 
	 	(g)	 	the giving of any guarantee or indemnity by the Company;
	 
	 	(h)	 	any change in the accounting policies adopted by the Company;
	 
	 	(i)	 	the creation of any encumbrance with respect to (i) any intellectual property
of the Company and (ii) any other asset or assets of the Company which either singly or
in aggregate have a value of more than US$150,000;
	 
	 	(j)	 	the provision of any credit, loan or the making of any advance by the Company;
	 
	 	(k)	 	the sale, transfer, lease, assignment or disposal of assets which either singly
or in aggregate have a value of more than US$150,000;
	 
	 	(l)	 	the purchase, lease or acquisition of assets which either singly or in
aggregate have a value of more than US$150,000 not provided for in the annual budget of
the Company;
	 
	 	(m)	 	the appointment or removal of any auditor;
	 
	 	(n)	 	the licensing or other transfer of any intellectual property other than in the
ordinary course of business;
	 
	 	(o)	 	the commencement or settlement of any legal proceeding involving more than
US$150,000; and
	 
	 	(p)	 	the entry into by the Company of any transaction or series or transactions
involving an aggregate amount in excess of US$150,000 including incurrence of any
borrowing under any existing or future banking and credit facilities and the granting
of any guarantee, indemnity, performance bond, lien, pledge, charge, mortgage or other
security and the incurrence of any form of indebtedness.

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	9.	 	GENERAL MEETINGS
	 
	9.1	 	Notwithstanding anything to the contrary in the Articles, the quorum for a general meeting of
the Company shall be four (4) Shareholders, including a representative from each of GigaMedia,
IIPL, Global Star and Softbank, personally present or represented by proxy, attorney or
representative, present throughout that general meeting. If within half an hour after the
time fixed for the meeting, the Shareholders constituting the quorum are not
present, the meeting shall be adjourned and reconvened and any three (3) Shareholders
present throughout such adjourned general meeting shall constitute a quorum.
	 
	9.2	 	The Shareholders shall use all reasonable endeavours to procure that a quorum is present at
and throughout each general meeting.
	 
	9.3	 	All questions and issues arising at a general meeting of the Company shall, unless otherwise
required by any applicable law and subject to clause 9.9, be decided in accordance with the
votes of a simple majority of the Shareholders.
	 
	9.4	 	Each Preference Shareholder shall have the right to that number of votes equal to the number
of votes carried by their respective number of Ordinary Shares then issuable upon conversion
of all its Preference Shares based on the prevailing Conversion Rate. Holders of all series
of Preference Shares and Ordinary Shares shall vote together as a class except as provided in
clause 9.10 below or as required by law.
	 
	9.5	 	A resolution in writing signed by all the Shareholders shall be as effective as a resolution
duly passed at a general meeting of the Company and may consist of such documents in the like
form, each signed by one or more directors. The expressions “in writing” and “signed” shall
include approval by telefax, telex, cable, telegram, digital or electronic signature or such
other mode of approval or indication of approval as may be permitted by law by any such
Shareholder.
	 
	9.6	 	The notice of a general meeting of the Company shall set out an agenda identifying in
reasonable detail the matters to be discussed (unless the Shareholders agree otherwise).
	 
	9.7	 	Without prejudice to clause 9.8, the parties agree that all Shareholders’ meetings shall be
held in Singapore unless otherwise agreed to by all of the Shareholders.
	 
	9.8	 	Without prejudice to clause 9.1, the Shareholders may meet together in person or by
telephone, teleconference or similar communications equipment or any other form of audio or
visual instantaneous communication by which all persons participating in the meeting are able
to hear and be heard by all participants, for the despatch of business and adjourn and
otherwise regulate their meetings as they think fit. A resolution passed by such a conference
shall, notwithstanding that the Shareholders are not present together at one place at the time
of the conference, be deemed to have been passed at a meeting of the Shareholders held on the
day and at the time at which the conference was held and shall be deemed to have been held at
the registered office of the Company and, unless otherwise agreed, all the Shareholders
participating at the meeting shall be deemed for all purposes of this Agreement to be present
at that meeting.
	 
	9.9	 	Notwithstanding the foregoing, the consent of the holders representing seventy-five per cent
(75%) of the Ordinary Shares (including the holders of the outstanding Preference Shares
voting on a Converted Basis together with the holders of Ordinary Shares and not as a single
class), the holders representing two-thirds of the Preference Shares, and the holders
representing seventy-five per cent (75%) of the outstanding Class B Shares shall be required
for:

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	 	(a)	 	The issuance by the Company of any new shares of any class;
	 
	 	(b)	 	Any repurchase or redemption of shares of the Company (other than pursuant to
restricted stock agreements with employees, redemption provisions in the Articles or
pursuant to the terms upon which the shares of the Company were issued);
	 
	 	(c)	 	Any amendment or repeal of any provision of the Memorandum and Articles of
Association of the Company and its subsidiaries;
	 
	 	(d)	 	Any change in the nature of the business of the Company;
	 
	 	(e)	 	Any merger, sale, consolidation of the Company with or into any entity;
	 
	 	(f)	 	The liquidation or dissolution of the Company or any of its subsidiaries;
	 
	 	(g)	 	The sale of all or substantially all the Company’s assets or the purchase of
all or substantially all of the assets of another entity;
	 
	 	(h)	 	The disposal of any intellectual property rights including all game licensing
contracts;
	 
	 	(i)	 	The declaration or payment of a dividend on any shares of the Company;
	 
	 	(j)	 	Any incurrence of debt by the Company other than the trade debts not
exceeding an aggregate value of US$150,000; and
	 
	 	(k)	 	Decisions regarding the terms of a public offering.

	9.10	 	Without prejudice to the above, the consent of the holders of at least 75% in value of the
each respective series of Preference Shares shall be required for:

	 	(a)	 	any change in any of the rights, preferences, privileges or powers of, or the
restrictions provided for the benefit of, the holders of that series of Preference
Shares;
	 
	 	(b)	 	the authorization, creation or issuance of (1) any Ordinary Shares or (2) any
class or series of shares having any right, preference or priority superior to or on a
pari passu basis with their series of Preference Shares; or
	 
	 	(c)	 	any new issuance of debt or equity security of the Company or its subsidiaries.

	10.	 	BUSINESS OF THE COMPANY
	 
	10.1	 	The Shareholders agree that, effective from the Completion Date, their respective rights and
obligations in the Company shall be regulated by this Agreement and the Articles.
	 
	10.2	 	Subject to clause 10.1, the Shareholders and the Company agree to be bound by and comply with
the provisions of this Agreement which relate to them and all provisions of the Articles will
be enforceable by the parties between themselves.
	 
	10.3	 	Subject to clause 10.1, each of the Shareholders agrees to exercise its respective rights
under this Agreement and as a Shareholder (insofar as it lawfully can) to:

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	 	(a)	 	procure that the Company proceeds with the Business in all respects and
continues to pursue the same with reasonable despatch;
	 
	 	(b)	 	procure that the Business is conducted in the best interests of the Company
and in accordance with sound and good commercial and business practice and
profit-making principles so as to generate the maximum achievable profits available
for distribution;
	 
	 	(c)	 	ensure that the Director(s) appointed by it exercises his powers as Director
and otherwise uses its reasonable endeavours to seek to ensure that the business of
the Company is confined to the Business;
	 
	 	(d)	 	procure that the Company complies with the Articles and all applicable laws
as well as the terms and conditions of any licence, permit or consent by which the
Company is bound at all times; and
	 
	 	(e)	 	ensure that the Director(s) appointed by it exercises his powers as Director
and otherwise uses its reasonable endeavours to seek to ensure that all employees of
the Company enter into non-compete and assignment of invention agreements in favour of
the Company.

	10.4	 	Any dealings with the Company and/or the Shareholders or any associates of such persons in
relation to the supply of goods or services shall be on normal arm’s length terms negotiated
between the relevant parties and no such person shall claim or be entitled to any preferential
treatment in relation thereto by reason of the relationship of such persons under this
Agreement or any shareholding in connection with the Company.
	 
	10.5	 	Without the prior consent of IIPL, and whether or not IIPL is then a shareholder of the
Company, neither the Company nor its subsidiaries shall use, publish or reproduce the “IDA” or
“IIPL” name or logo, or any similar name, trademark, or logo in any of their marketing,
advertising or promotional materials or otherwise for any marketing, advertising or
promotional purposes.
	 
	10.6	 	Each of the Parties acknowledges that the Company and GigaMedia shall become strategic
partners and to the extent permitted by the licensing and other contracts entered into between
the Company and the publishers of the online games conferring on the Company publishing rights
in respect of those games in Hong Kong and/or Taiwan (if any), each of the Shareholders agrees
to exercise its respective rights under this Agreement (insofar as it lawfully can) to procure
that the Company shall, if it decides not to exercise such right, first offer GigaMedia the
right to operate such online games in Hong Kong and/or Taiwan on terms no less favourable to
those offered to any other party.

	11.	 	FINANCE

			
	11.1   (a)	 	In the event any additional working capital is required by the Company with regards to
the Business, such working capital shall be met through the provision of revolving credit
facilities. Any additional working capital of the Company may be met through (i) provision of
loans, letters of credit or credit facilities to the Company from such financial institutions
as the Board may from time to time agree; or (ii) subject to the consent of the relevant
Shareholder, provision of advance loans by the Shareholders to the Company on such terms as
may be agreed between the relevant Shareholder and the Company.

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	 	(b)	 	In respect of any loan by any Shareholder to be provided pursuant to this
clause, such loan shall be entitled to interest payment by the Company at the rate to
be agreed from time to time on the basis of a one (1) month interest period. Unless
otherwise agreed between the parties hereto, such loans shall be repaid in full within
two (2) months of the disbursement.

	12.	 	MANAGEMENT, ACCOUNTS AND INFORMATION
	 
	12.1	 	The Shareholders shall, for so long as they remain Shareholders of the Company, be furnished
with such information relating to the Business and/or the Company as they may from time to
time reasonably request, in particular but without prejudice to the generality of the
foregoing, the following information:

	 	(a)	 	the Annual Budget and Operating Plan for the succeeding fiscal year no later
than thirty (30) days prior to the end of each fiscal year;
	 
	 	(b)	 	copies of the audited consolidated accounts of the Company in respect of each
financial year forthwith on the same becoming available and in any event not later
than forty five (45) days from the date of each such financial year, such accounts to
be audited by a Big Four accounting firm of the Company’s choice, being
PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young or KPMG;
	 
	 	(c)	 	copies of unaudited consolidated accounts of the Company no later than
twenty-five (25) days from the end of the first three (3) fiscal quarters of each
financial year, such accounts to be reviewed by a Big Four accounting firm of the
Company’s choice, being PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young or
KPMG;
	 
	 	(d)	 	copies of the unaudited consolidated monthly accounts of the Company no later
than twenty-five (25 days) days from the end of each month;
	 
	 	(e)	 	monthly bank account(s) statements of the Company within fifteen (15) days
after the end of each month; and
	 
	 	(f)	 	information relating to the operation of the Company or its subsidiaries,
including information on the average number of concurrent users for each online game
operated by the Company.

	12.2	 	The accounts of the Company shall be prepared on a consistent basis and in accordance with
generally accepted accounting principles consistently applied in Singapore and the United
States.
	 
	12.3	 	Each Shareholder shall have the right independently to call for, to exercise and inspect at
all reasonable times, the books, records and accounts of the Company and any of its
subsidiaries and may appoint and authorise any person or persons to make such examination on
their behalf. The Shareholders shall procure that the Auditors shall co-operate with such
persons and provide access to such information and records as well as any explanations as such
persons may reasonably request in relation to the Company’s accounts and records. Each
Shareholder shall also have the right to request for any discussions with, or explanations
from any Director, officer, employee, Auditor, legal or other professional adviser of the
Company in relation to any queries it may have relating to the Business and/or the operations
of the Company. Any costs incurred shall be borne by the Shareholder requesting for the
examination, unless any material or substantial defect was found through

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	 	 	such examination evidencing breach of this Agreement in which case the party so breaching this
Agreement shall bear the costs so incurred.
	 
	12.4	 	The financial year of the Company shall be from 1 January to 31 December of each year.
	 
	12.5	 	The Company shall maintain two (2) bank accounts (respectively the “Investment Account” and
“Operating Account”) for the purpose of its business activities. The Investment Account
through which all investment activities approved by the Investment Committee are transacted
shall require two (2) signatories for all transactions, one of whom shall be a director
appointed by IIPL and the other of whom shall be appointed by Global Star. The Operating
Account, through which the daily operational expenses and budgeted expenditure are transacted
will require two (2) account signatories for withdrawals of more than US$100,000, one of whom
shall be a director appointed by IIPL and the other of whom shall be appointed by Global Star.
For the avoidance of doubt, drawings shall be in accordance with the proper authorisation of
the Board and Investment Committee and all financing raised by the Company shall be credited
into the Investment Account and the annual operating budget approved by the Board shall be
drawn down from the Investment Account into the Operating Account prior to the start of the
financial year.

	13.	 	TRANSFER OF SHARES
	 
	13.1	 	Except as otherwise provided for in this Agreement, a Shareholder shall be entitled to sell,
transfer or otherwise dispose of all but not some only, of its Shares provided that that
Shareholder first makes an offer to sell the same to the holders of Preference Shares in
compliance with the rights of pre-emption contained in clause 13.2.
	 
	13.2	 	Any Shareholder desirous of selling its Shares or any interest therein (the “Seller”) shall
do the following:

	 	(a)	 	The Seller shall give a notice in writing (a “Transfer Notice”) to the
holders of Preference Shares specifying the number of Shares held by him to be offered
at the prescribed price (the “Prescribed Price”);
	 
	 	(b)	 	The Prescribed Price shall be a price offered by a bona fide purchaser of
such Shares to be sold or transferred, or a price to be agreed upon between the Seller
and the Directors and, in a case where the Seller and Directors are unable to agree,
at a price which the Auditors shall by writing under his hand certify to be in his
opinion, the fair value thereof as between a willing seller and a willing buyer having
regard to the tangible net asset value per Share of the Company;
	 
	 	(c)	 	The Transfer Notice shall specify a period (the “Prescribed Period”) being
not less than ten (10) days from the date of the Transfer Notice within which the
offer must be accepted or (in default) will lapse. A Transfer Notice once given shall
be irrevocable;
	 
	 	(d)	 	If within the Prescribed Period, any or all of the Preference Shareholders
(the “Buyer(s)”) accept(s) the offer contained in a Transfer Notice by giving notice
(an “Acceptance Notice”) to that effect to the Seller, the Seller shall allocate the
said Shares to or amongst the Buyer(s) and in the case of competition, Pro Rata
amongst the Preference Shareholders, provided that no Buyer(s) shall be obliged to
take more than the maximum number of Shares specified by him (if any) in the
Acceptance Notice; and the Seller shall upon the expiry of the Prescribed Period
give notice of such allocation to the Buyer(s) (an “Allocation Notice”) to whom the
Shares have been allocated and shall specify in such Allocation Notice, the place

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	 	 	 	and time (being not later than ten (10) days after the date of the said Allocation
Notice) at which the sale of the Shares so allocated shall be completed. Where however, any
Preference Shareholder does not accept the offer contained in the Transfer Notice and the
aggregate number of Shares specified in the Acceptance Notices received is less than the
number of Shares offered by the Seller, the other Preference Shareholder shall be entitled,
at their election, to purchase the remaining Shares at the Prescribed Price and where more
than one other holder of Preference Shares wishes to purchase such Shares, the Shares will
be allocated Pro Rata amongst the Preference Shareholders;

	 	(e)	 	The Seller shall be bound to transfer the Shares comprised in the Allocation
Notice(s) to the Buyer(s) named therein at the time and place therein specified and,
if he shall fail to do so, any one Director or the Secretary shall be deemed to have
been appointed agent of the Seller with full power to execute, complete and deliver,
in the name and on behalf of the Seller, transfers of the Shares to the Buyer(s)
thereof against payment of the Prescribed Price to the Company. On payment of the
Prescribed Price to the Company, the Buyer(s) shall be deemed to have obtained a good
discharge for such payment. The Company shall forthwith pay the relevant monies into a
separate bank account in the Company’s name and shall hold such monies in trust for
the Seller. After the Buyer(s) is/are registered in the Register of Members as the
holder(s) of such Shares pursuant to the transfer thereof, the validity of the
proceedings shall not be questioned by any person;
	 
	 	(f)	 	Subject to the provisions of this clause 13.2, any Buyer(s) which serves an
Acceptance Notice shall become bound to purchase all of the Shares allocated to him in
accordance with clause 13.2(d) above;
	 
	 	(g)	 	If, by the end of the Prescribed Period, no Acceptance Notice has been served
or not all the Shares comprised in the Transfer Notice are subject to the Acceptance
Notice(s) issued by the Buyer(s), the Seller shall subject to clause 13.3 be entitled
to sell its Shares to a third party at a price which is not lower than the Prescribed
Price provided that if any Preference Shareholder does not purchase its entitlement of
the Shares offered, such Shares shall first be offered to the other Shareholders at
the Prescribed Price. Such Shareholders shall have not less than ten (10) days to
accept the offer before such Shares are offered to any third party. The Seller shall
give prior notice in writing of the identity of the third party (the “Intended
Transferee”) to whom he intends to sell the Shares, to the Shareholders and the
Company.

	13.3	 	It shall be a condition precedent to the right of any Shareholder to transfer Shares to the
Intended Transferee that:

	 	(a)	 	the other Shareholder(s) unanimously agree in writing to the transfer of the
Shares to the Intended Transferee and such consent shall not be unreasonably withheld;
and
	 
	 	(b)	 	the Intended Transferee if not already bound by the provisions of this
Agreement, executes a deed of ratification and accession under which it agrees to be
bound by and be entitled to the benefit of this Agreement as if an original party
hereto, in place of the transferor prior to the date of such transfer.

	13.4	 	The Shareholders shall procure that any transfer of Shares in accordance with this clause 13
and the transferee thereto shall (subject to all formalities in respect thereof having been
fulfilled) be duly registered by the Company.
	 
	13.5	 	No Shareholder shall without the prior written consent of the other Shareholders create or
permit to subsist any mortgage, charge, pledge, lien or other encumbrance of any nature

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	 	 	 	whatsoever over its Shares. No Shareholder shall grant any option or other rights to dispose
of any interest in any Shares held by it (otherwise than by a transfer in accordance with
clause 13 and the Articles). Except as provided in this Agreement, no Shareholder shall
enter into any agreement with respect to the voting rights attached to all or any of its
Shares or other securities in the Company or grant any option in relation thereto.

	13.6	 	On a sale, transfer or disposition of Shares in accordance with the preceding sub-clauses of
this clause 13:

	 	(a)	 	the Seller shall repay all loans, borrowings and indebtedness outstanding to
the Company from the Seller (together with any accrued interest thereon);
	 
	 	(b)	 	the other Shareholders shall procure the Company to repay all loans,
borrowings and indebtedness outstanding to the Seller from the Company (together with
accrued interest thereon); and
	 
	 	(c)	 	the Seller shall procure the resignation and/or removal of any Director
appointed by it.

	13.7	 	For the avoidance of doubt, the foregoing right of first refusal shall not apply to transfers
to affiliates or immediate family members (or trust thereof) of a holder.
	 
	13.8	 	For the purposes of the remaining provisions of this clause 13:

	 	(a)	 	the word “company” includes any body corporate;
	 
	 	(b)	 	the expression “a Member of the Same Group” in relation to any company, means
a company which is for the time being a related company to the first mentioned company
as defined in the Act;
	 
	 	(c)	 	the expression “Transferor Company” means a company which has transferred or
proposes to transfer Shares to a Member of the Same Group;
	 
	 	(d)	 	the expression “Transferee Company” means a company for the time being
holding Shares in consequence, directly or indirectly, of a transfer of Shares or
series of transfers of Shares between Members of the Same Group (the relevant
Transferor Company in the case of a series of such transfer being the first transferor
in such series); and
	 
	 	(e)	 	the expression “the Relevant Shares” means and includes (so far as the same
remain for the time being held by any Transferee Company) the Shares originally
transferred to such Transferee Company and any additional Shares issued to or acquired
by such Transferee Company.

	13.9	 	All but not some only of a Shareholder’s Shares may at any time be transferred by the
Shareholder to a company which is a Member of the Same Group. If any Shareholder transfers its
Shares to a Member of the Same Group, then the Shareholder hereby guarantees the performance
by the Transferee Company of all obligations to be performed by it under this Agreement or in
respect of such Shares. It shall be a condition precedent to the transfer of Shares to a
Member of the Same Group that the Transferee Company executes a deed of ratification and
accession under which it agrees to be bound by and be entitled to the benefit of this
Agreement as if an original party in place of the transferor prior to the date of such
transfer.
	 
	13.10	 	Notwithstanding any provisions to the contrary, all or part of the Class A Shares or Class B

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	 	 	Shares may at any time be transferred, sold or otherwise disposed without compliance with
Clauses 13, 14 or 15, to a bona fide third party who is not a Person carrying on any
business in competition with the Business or the Company, subject to the prior consent of
IIPL, such consent not to be unreasonably withheld. It shall be a condition precedent to
the transfer of Shares to such third party that the transferee executes a deed of
ratification and accession under which it agrees to be bound by and be entitled to the
benefit of this Agreement as if an original party in place of the transferor prior to the
date of such transfer.

	13.11	 	If a Transferee Company ceases to be a Member of the Same Group as the Transferor Company
from which (whether directly or by a series of transfers) the Relevant Shares were derived,
then within 14 days of such cessation the Transferee Company shall transfer the Relevant
Shares to the Transferor Company or any other nominee of the Transferor Company (which shall
be a Member of the Same Group) and the Transferor Company shall be bound to either accept the
Relevant Shares or to procure that its nominee shall accept the Relevant Shares, as the case
may be. In case of default of this clause 13.11, the Transferee Company shall be deemed to
have appointed a Director appointed by the other Shareholders as its lawful attorney with full
power to execute any instrument of transfer, deed of assignment or any other document
necessary to implement the said transfer and the Transferor Company is deemed either to have
consented to accept the Relevant Shares and to being registered in the Company’s register of
members and register of transfers as the holder of the Relevant Shares or to have undertaken
to procure such consent from its nominee, as the case may be. Where the Relevant Shares are
transferred back to the Transferor Company, the Transferor Company shall execute a deed of
ratification and accession under which it agrees to be bound by and be entitled to the benefit
of this Agreement as if an original party prior to the date of such transfer. Where the
Relevant Shares are transferred back to a nominee of the Transferor Company, the Transferor
Company shall procure that its nominee shall execute a deed of ratification and accession
under which it agrees to be bound by and be entitled to the benefit of this Agreement as if an
original party in place of the transferor prior to the date of such transfer.

	14.	 	COMPULSORY TRANSFERS
	 
	14.1	 	If any Shareholder (a “Defaulting Shareholder”):

	 	(a)	 	shall commit any material breach of its obligations under this Agreement and,
if remediable, shall fail to take all necessary action to remedy such breach within
fourteen (14) days upon the service of notice by any of the other Shareholder(s) (the
“Non-Defaulting Shareholder(s)”) complaining of such breach;
	 
	 	(b)	 	shall go into voluntary liquidation otherwise than for the purpose of
reconstruction or amalgamation or an order of the court is made for its compulsory
liquidation or shall have a receiver (or a receiver and manager) or similar officer
appointed in respect of any substantial part of its assets or shall have a judicial
manager or equivalent officer appointed;
	 
	 	(c)	 	shall compound or make any composition or arrangement with its creditors;
	 
	 	(d)	 	shall cease or threaten to cease wholly or to carry on its business,
otherwise than for the purpose of a reconstruction or amalgamation without insolvency
previously approved by the other Shareholders;
	 
	 	(e)	 	shall sell, transfer, lease or otherwise dispose of the whole or
substantially the whole of its assets, rights and undertaking;

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	 	(f)	 	shall become insolvent;
	 
	 	(g)	 	is subject to a distress, sequestration, execution, attachment or garnishee
which is levied or enforced against its property, undertaking or revenues and is not
discharged within ten (10) days;
	 
	 	(h)	 	is unable to pay its debts as and when they fall due; or
	 
	 	(i)	 	any of the matters in sub-clauses (b), (c), (d), (e) and (f) above
occurs in relation to any holding company or ultimate holding company for the
time being of the Defaulting Shareholder,

then upon notice by any of the Non-Defaulting Shareholder(s) to the Company and
the Defaulting Shareholder, the Defaulting Shareholder shall thereupon be
deemed to have served on the Non-Defaulting Shareholder, a notice (the “Default
Transfer Notice”) offering irrevocably to sell the legal and beneficial
ownership of all its Shares (the “Sale Shares”) at the fair value of the Shares
less twenty per cent (the “Default Prescribed Price”) as determined by the
Auditors in accordance with clause 14.2 within fourteen (14) days after the
issue of the Auditor’s certificate in accordance with clause 14.2 or such
longer period as agreed by the Non-Defaulting Shareholders (the “Default
Prescribed Period”). The procedure governing the sale of the Sale Shares
pursuant hereto shall be in accordance with the procedure set out in clause
13.2 save for:

	 	(aa)	 	any reference to the Seller in clause 13.2 shall be deemed to be a reference
to the Defaulting Shareholder;
	 
	 	(bb)	 	any reference to the Purchaser(s) shall be deemed to be a reference to the
Non-Defaulting Shareholder(s) who issue acceptance notice(s) in respect of the Sale
Shares respectively;
	 
	 	(cc)	 	the Default Prescribed Price and the Default Prescribed Period shall be as
determined in the manner set out in this clause 14.1;

	 	 	 	Save as provided herein, any Transfer Notice served by a Defaulting Shareholder pursuant to
clause 13.2 during the Default Prescribed Period mentioned in this clause shall be void and
of no effect. The provisions of clauses 13.4 and 13.6 shall mutatis mutandis apply to the
sale of the Sale Shares hereunder.

	14.2	 	The Auditors will act as experts and not as arbitrators and will certify in writing what in
their opinion was the fair value of the Sale Shares on the date the Default Transfer Notice
was deemed to have been served pursuant to clause 14.1, on the following assumptions:

	 	(a)	 	valuing the Sale Shares as an arm’s length sale between a willing seller and
a willing purchaser;
	 
	 	(b)	 	if the Company was then carrying on business as a going concern, on the
assumption that it will continue to do so; and
	 
	 	(c)	 	valuing the Sale Shares as a rateable proportion of the total value of the
issued share capital of the Company which value shall not be discounted or enhanced by
reference to the number of the Sale Shares having regards to the net tangible asset
value of the Company.

If any difficulty shall arise in applying any of the foregoing assumptions then such
difficulty shall be resolved by the Auditors in such manner as they shall in their absolute
discretion

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think fit. All costs of the Auditors shall be borne by the Defaulting
Shareholder. The Shareholders shall procure the Auditors to determine the Default Prescribed Price in
accordance with this clause 14.2 as soon as practicable after the service of a notice of
default on the Defaulting Shareholder and the Company by any of the Non-Defaulting
Shareholders.

	14.3.	 	Notwithstanding anything hereinbefore mentioned, on the occurrence of any of the events
mentioned in clause 14.1, the Non-Defaulting Shareholder(s) may by notice to the Defaulting
Shareholder request that the Company be liquidated and unless the Shareholders otherwise
agree, they shall each take such steps as may be necessary to forthwith liquidate the Company.

	15.	 	TAG-ALONG RIGHTS
	 
	15.1	 	Notwithstanding clause 13.1, if any Shareholder proposes to transfer, in a single transaction
or a series of related transactions, any of the Shares held by it in a bona fide sale (the
“Transfer”), then that Shareholder (the “Transferring Shareholder”) shall promptly give
written notice (the “Notice of Transfer”) simultaneously to the Company and to the Preference
Shareholders. The Notice of Transfer shall describe in reasonable detail the terms and
conditions of the proposed Transfer including, without limitation, the number of Shares to be
transferred, the nature of such Transfer, the consideration to be paid, and the name and
address of each prospective purchaser transferee.
	 
	15.2	 	Each of the Preference Shareholders shall have the right, exercisable upon written notice
(the “Notice of Participation”) to the Company within ten (10) days after the receipt of the
Notice of Transfer, to inform the Company in writing whether it elects to participate in the
Transfer by the Transferring Shareholder on the same terms and conditions as set forth in the
Notice of Transfer. The Notice of Participation shall indicate the number of Shares that other
Shareholder elects to Transfer pursuant to this clause 15.2, up to that number of Shares equal
to the product obtained by multiplying (i) the aggregate number of Shares set forth in the
Notice of Transfer by (ii) that other Shareholder’s Shareholder Proportion at time of the
Transfer. That other Shareholder who elects to participate in the Transfer by the Transferring
Shareholder pursuant to this clause 15.2 (a “Tag-Along Participant”) shall promptly deliver to
the Company (who shall be deemed to be constituted the agent of the Transferring Shareholder
and the Tag-Along Participant for the Transfer in accordance with the Articles) for transfer
to the prospective purchaser one or more share transfer forms, properly executed for transfer,
which represent the number of Shares which such Tag-Along Participant elects to Transfer,
together, where applicable with the relevant share certificates and any other documents
required for the Transfer.
	 
	15.3	 	To the extent that a Preference Shareholder fails to elect to participate in the Transfer by
the Transferring Shareholder, that Preference Shareholder shall be deemed to have consented to
the Transfer by the Transferring Shareholder on the terms and conditions and to the
prospective purchaser as set forth in the Notice of Transfer. Any proposed Transfer on terms
and conditions more favourable than those described in the Notice of Transfer or to a
transferee not identified in such notice, as well as any subsequent proposed Transfer of any
of the Shares held by the Transferring Shareholder, shall again be subject to the tag-along
rights of the other Shareholders and shall require compliance by the Transferring Shareholder
with the procedures described in this clause 15. The exercise or non-exercise of the rights of
a Shareholder hereunder to participate in one or more sales by another Shareholder shall not
adversely affect the first-mentioned Shareholder’s rights to participate in subsequent sales
of Shares by a Shareholder pursuant to this clause 15.
	 
	15.4	 	Upon consummation of the Transfer of the Shares pursuant to the terms and conditions

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	 	 	 	specified in the Notice of Transfer, the Transferring Shareholder or the Company, as the
case maybe, shall remit to the Tag-Along Participant that portion of the proceeds to which
such Tag-Along Participant is entitled by reason of its participation in such Transfer. To
the extent that any prospective purchaser or purchasers prohibits such assignment or
otherwise refuses to purchase Shares from a Tag-Along Participant exercising its tag-along
rights hereunder, the Transferring Shareholder shall not Transfer to such prospective
purchaser or purchasers any of its Shares unless and until, simultaneously with such
Transfer, the Transferring Shareholder shall purchase the Shares from the Tag-Along
Participant on the same terms and conditions as specified in the Notice of Transfer.

	15.5	 	Notwithstanding the foregoing, tag-along rights shall not apply to any Transfer or Transfers
by a Shareholder to a subsidiary of such a Shareholder or made pursuant to a bona fide loan
transaction with a financial institution that creates a mere security interest; Provided that
in the event of any Transfer made pursuant to this clause 15.5 such Shareholder shall inform
the Company and the other Shareholders of such Transfer prior to effecting it and the
transferee, prior to the completion of the Transfer, shall have executed documents (in such
form as may be reasonably approved by the other Shareholders) assuming the obligations of the
relevant Shareholder under this Agreement with respect to the Shares so transferred to such
transferee.
	 
	15.6	 	Any purported Transfer by a Shareholder in violation of this Agreement shall be null and void
and of no force and effect and the purported transferees shall have no rights or privileges in
or with respect to the Company or the Shares purported to have been so transferred. The
Company shall refuse to recognise any such Transfer and shall not reflect on its records any
change in ownership of such Shares purported to have been so transferred.

	16.	 	BRING ALONG RIGHTS

	 	 	 	If the holders of at least seventy five per cent (75%) of the outstanding Ordinary Shares
(including the votes of the holders of the outstanding Preference Shares voting on a
Converted Basis together with the holders of the Ordinary Shares and not as a single class)
propose to enter into an agreement or arrangement for the sale of all of their shares to a
third party for a price per Share of at least two times the Class B Issue Price, this
majority shall have the right to cause all the holders of the Ordinary Shares and Preference
Shares to sell their shares in the Company pursuant to such transaction.

	17.	 	REGISTRATION RIGHTS

	17.1	 	Initiating Holders shall be entitled, at any time after a QPO, to request for the
Registration of Registrable Securities by way of notice in writing to the Company where the
reasonably anticipated aggregate offering size to the public is at least US$15,000,000 (before
payment of underwriters’ discounts, commissions and offering expenses). Upon the receipt of
such a request, the Company shall (a) promptly give written notice of the proposed
Registration to all other Shareholders and (b) as soon as practicable, and in any event within
sixty (60) days of the receipt of such request, cause the Registrable Securities, to be
Registered and/or qualified for sale and distribution in such jurisdictions as the Initiating
Holders may reasonably request. The Company shall be obligated to effect only three (3) such
Registrations.
	 
	17.2	 	Initiating Holders shall be entitled, at any time after a QPO, to request by way of notice in
writing to the Company, for the filing of a Registration Statement on Form F-3 (or any
successor form to Form F-3, or any comparable form for Registration in a jurisdiction other
than the United States) for a public offering of the Registrable Securities where the

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	 	 	 	reasonably anticipated aggregate offering price to the public is at least US$15,000,000
(before payment of underwriters’ discounts, commissions and offering expenses), and the
Company will be entitled to use Form F-3 or a comparable form to Register the Registrable
Securities. Upon receipt of such a request the Company shall, as soon as practicable, and
in any event within sixty (60) days of the receipt of such request, cause the Registrable
Securities specified in the request, to be Registered and qualified for sale and
distribution in such jurisdictions as the Initiating Holders may reasonably request. The
Company’s obligation to effect registrations pursuant to this clause 17.2 is unlimited.

	17.3	 	Where the Company proposes to Register for its own account any of its Shares in connection
with the public offering of such Shares, the Company shall promptly give notice in writing to
the Shareholders and, upon the written request of such Shareholders (such request to be in
writing and given not later than 20 days after the delivery of the notice by the Company of
such Registration), the Company shall use all reasonable endeavours to include in such
Registration any Registrable Securities requested by the Shareholders.

	17.4	 	Whenever required under this Agreement to effect the Registration of any Registrable
Securities, the Company shall, as expeditiously as possible:

	 	(a)	 	Prepare and file with the Commission a Registration Statement with respect to
those Registrable Securities and use its best efforts to cause that Registration
Statement to become effective, and, upon the request of the Shareholders, keep the
Registration Statement effective for up to a year;
	 
	 	(b)	 	Prepare and file with the Commission amendments and supplements to that
Registration Statement and the prospectus used in connection with the Registration
Statement as may be necessary to comply with the provisions of Applicable Securities
Law with respect to the disposition of all securities covered by the Registration
Statement;
	 
	 	(c)	 	Furnish to the Shareholders the number of copies of a prospectus, including a
preliminary prospectus, required by Applicable Securities Law, and any other documents
as they may reasonably request in order to facilitate the disposition of Registrable
Securities owned by them;
	 
	 	(d)	 	Use its best efforts to Register and qualify the securities covered by the
Registration Statement under the securities laws of any jurisdiction, as reasonably
requested by the Shareholders, provided that the Company shall not be required to
qualify to do business or file a general consent to service of process in any such
jurisdictions, and provided further that in the event any jurisdiction in which the
securities shall be qualified imposes a non-waivable requirement that expenses incurred
in connection with the qualification of the securities be borne by selling
shareholders, those expenses shall be payable pro rata by selling shareholders;
	 
	 	(e)	 	In the event of any underwritten public offering, entering into and performing
its obligations under an underwriting agreement, in usual and customary form, with the
managing underwriter of the offering. Each shareholder participating in the
underwriting shall also enter into and perform its obligations under such an agreement;
	 
	 	(f)	 	Notify the holders of Registrable Securities covered by the Registration
Statement at any time when a prospectus relating thereto is required to be delivered
under Applicable Securities Law or of the happening of any event as a result of which
any prospectus included in the Registration Statement, as then in effect, includes an
untrue statement of a material fact or omits to state a material fact required to be

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	 	 	 	stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing;

	 	(g)	 	Provide a transfer agent and registrar for all Registrable Securities
Registered pursuant to the Registration Statement and, where applicable, a CUSIP number
for all those Registrable Securities, in each case not later than the effective date of
the Registration;
	 
	 	(h)	 	Furnish, at the request of any Initiating Holders, on the date that such
Registrable Securities are delivered for sale in connection with a Registration
pursuant to this Agreement, (i) an opinion, dated the date of the sale, of the counsel
representing the Company for the purposes of the Registration, in form and substance as
is customarily given to underwriters in an underwritten public offering; and (ii) a
comfort letter dated the date of the sale, from the independent certified public
accountants of the Company, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten public
offering, addressed to the underwriters; and
	 
	 	(i)	 	Take all reasonable action necessary to list the Registrable Securities on
the primary exchange upon which the Company’s securities are then traded.

	17.5	 	To the extent permitted by law, all expenses (other than any underwriting discounts and
commissions applicable to the sale of the Registrable Securities) incurred in connection with
Registrations, filings or qualifications pursuant to this Agreement, including (without
limitation) all Registration, filing and qualification fees, printers’ and accounting fees,
fees and disbursements of counsel for the Company and underwriters, shall be borne by the
Company. The Company shall not, however, be required to pay for any expenses of any
Registration proceeding begun pursuant to this Agreement if the Registration request is
subsequently withdrawn at the request of the Shareholders.
	 
	17.6	 	The right to cause the Company to Register Registrable Securities pursuant to this Agreement
may be assigned by a Shareholder to a transferee or assignee of such securities provided that:
(a) the Company is, within a reasonable time after such transfer, furnished with written
notice of the name and address of such transferee or assignee and the securities with respect
to which such registration rights are being assigned and (b) such transferee or assignee
agrees in writing to be bound by and subject to the terms and conditions of this Agreement. In
the event that a transfer or assignment of Registrable Securities does not satisfy the
conditions set forth above, such securities shall no longer be deemed to constitute
“Registrable Securities” for purposes of this Agreement.
	 
	17.7	 	The Company shall not without the prior written consent of the Holders, enter into any
agreement with any Shareholder or any prospective Shareholder which would allow such
Shareholder or prospective Shareholder to enjoy Registration rights on terms more favourable
than those granted to the Holders or any other Shareholder.
	 
	17.8	 	To the extent permitted by law, the Company (the “indemnifying party”) will indemnify and
hold harmless the Shareholder, its officers, directors, shareholders, legal counsel and
accountants, any underwriter (as defined in the Securities Act) for such Shareholder and each
Person, if any, who controls (as defined in the Securities Act) the Shareholder or underwriter
(each an “indemnified party”) against any losses, claims, damages or liabilities (joint or
several) to which they may become subject under laws which are applicable to the Company and
relate to action or inaction required of the Company in connection with any Registration,
qualification, or compliance, insofar as such losses, claims, damages, or liabilities (or
actions in respect thereof) arise out of or are based upon any of the following statements,
omissions or violations (each a “Violation”): (i) any untrue statement or alleged

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untrue statement of a material fact contained in such Registration Statement, including any
preliminary prospectus or final prospectus contained therein or any amendments or
supplements thereto, (ii) the omission or alleged omission to state in the Registration
Statement, including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, a material fact required to be stated therein or
necessary to make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of Applicable Securities Laws, or any rule or regulation
promulgated under Applicable Securities Laws. The Company will reimburse the Shareholders,
underwriter or controlling person for any legal or other expenses reasonably incurred by
them in connection with investigating or defending any such loss, claim, damage, liability
or action.

	17.9	 	Promptly after receipt by an indemnified party under clause 17.8 above of notice of the
commencement of any action (including any governmental action), such indemnified party will,
if a claim in respect thereof is to be made against any indemnifying party under clause 17.8,
deliver to the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent the indemnifying
party so desires, to assume the defense thereof. The indemnified party shall have the right to
retain one separate counsel, with the fees and expenses to be paid by the indemnifying party,
if representation of such indemnified party by the counsel retained by the indemnifying party
would be inappropriate due to actual or potential differing interests between such indemnified
party and any other party represented by such counsel in such proceeding. The failure to
deliver written notice to the indemnifying party within a reasonable time of the commencement
of any such action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under clause 17.8, but the
omission to deliver written notice to the indemnifying party will not relieve it of any
liability that it may have to any indemnified party otherwise than under this clause 17.

	17.10	 	If any indemnification provided for in clause 17.8 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability,
claim, damage or expense referred to herein, the indemnifying party, in lieu of indemnifying
such indemnified party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage or expense in such
proportion as is appropriate to reflect the relative fault of the indemnifying party, on the
one hand, and of the indemnified party, on the other, in connection with the statements or
omissions that resulted in such loss, liability, claim, damage or expense, as well as any
other relevant equitable considerations. The relative fault of the indemnifying party and of
the indemnified party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified party and the
parties’ relative intent, knowledge, access to information, and opportunity to correct or
prevent such statement or omission.

	17.11	 	The obligations of the Company and the Shareholders under clauses 17.8, 17.9 and 17.10 shall
survive the completion of any offering of Registrable Securities in a Registration Statement
under this Agreement, and otherwise.

	17.12	 	With a view to making available to the Shareholders the benefits of Rule 144 promulgated
under the Securities Act and any comparable provision of any Applicable Securities Law that
may at any time permit such Shareholders to sell securities of the Company to the public
without Registration or pursuant to a Registration on Form F-3 (or any comparable form in a
jurisdiction other than the United States), the Company agrees to:

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	 	(i)	 	make and keep public information available, as those terms are understood and
defined in Commission Rule 144 (or comparable provision under Applicable Securities
Laws in any jurisdiction where the Company’s securities are listed), at all times
following ninety (90) days after the effective date of a Qualified Public Offering;
	 
	 	(ii)	 	file with the Commission in a timely manner all reports and other documents
required of the Company under all Applicable Securities Laws; and
	 
	 	(iii)	 	at any time following 90 days after the effective date of the Qualified Public
Offering, promptly furnish to the Shareholders, upon request (i) a written statement by
the Company that it has complied with the reporting requirements of all Applicable
Securities Laws at any time after it has become subject to such reporting requirements
or, at any time after so qualified, that it qualifies as a registrant whose securities
may be resold pursuant to Form F-3 (or any form comparable thereto under Applicable
Securities Laws of any jurisdiction where the Company’s securities are listed), (ii) a
copy of the most recent annual or quarterly report of the Company and such other
reports and documents as may be filed by the Company with the Commission, and (iii)
such other information as may be reasonably requested in availing any Holder of any
rule or regulation of the Commission, that permits the selling of any such securities
without Registration or pursuant to such form.

	18	 	DURATION AND TERMINATION

	18.1	 	This Agreement shall take effect from Completion Date and shall continue without limit in
time until terminated by (i) an underwritten public offering of the Company or (ii) a merger,
amalgamation or consolidation of the Company (in which the shareholders of the Company
immediately prior to such event hold, immediately after, Shares representing less than a
majority of the voting power of the outstanding Shares of the surviving entity) or the sale of
all or substantially all of the Company’s assets or (iii) liquidation, dissolution or winding
up of the Company or (iv) the unanimous agreement of all the parties hereto in writing,
whichever is earlier.

	18.2	 	If any Shareholder sells all of its Shares in accordance with the provisions of this
Agreement then subject to clause 18.3, it shall be released from all of its obligations
hereunder save for its obligations under clauses 19.1 and 23 and 24.1. If, following any such
transfer, there is more than one Shareholder bound by the provisions of this Agreement, then
this Agreement shall continue in full force and effect as between the continuing Shareholders.

	18.3	 	The termination of this Agreement howsoever caused and the ceasing by any Shareholder to hold
any Shares shall be without prejudice to any obligations or rights of any of the parties
hereto which have accrued prior to such termination and shall not affect any provision of this
Agreement which is expressly or by implication provided to come into effect on or to continue
in effect after such termination.

	18.4	 	The information rights as set out in clause 12.1 shall terminate upon the Company’s first
underwritten public offering or the date the Company becomes subject to the periodic reporting
requirements of the relevant exchange regulations.

	19.	 	NON-COMPETITION AND OTHER RESTRICTIONS

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	19.1	 	None of the Shareholders shall, at any time whilst it is beneficially interested in any
Shares of the Company or for a period of one (1) year from the date on which such Shareholder
ceases to be beneficially interested in the Shares, do or permit to be done any of the
following without the prior written consent of the other Shareholder(s):

	 	(a)	 	either solely or jointly with or on behalf of any person directly or
indirectly carry on or be engaged or interested in or assist any person in carrying on
any business competing with the Business;
	 
	 	(b)	 	solicit or assist any person in soliciting the custom of any person who is or
has been at any time during the term of this Agreement, a customer of the Company, for
the purpose of offering to such customer, goods or services similar to or competing
with those of the Business;
	 
	 	(c)	 	solicit or entice away or endeavour to solicit or entice away or assist any
person to solicit or entice away or endeavour to solicit or entice away any Director
or employee of the Company or of any subsidiary of the Company, but without prejudice
to the right of such Shareholder to terminate arrangements under which any of its
staff are seconded to the Company; or
	 
	 	(d)	 	cause or permit any person directly or indirectly under its control to do any
of the foregoing acts or things.

Provided that nothing herein shall preclude or restrict either Shareholder(s) or their
respective subsidiaries from:

	 	(i)	 	carrying on any activity carried on during the period of twelve (12) months
immediately preceding the date of this Agreement; or
	 
	 	(ii)	 	offering any service or goods similar to those previously supplied as part of
the Business but subsequently discontinued and not supplied by the Company at the time
when such similar service or goods are offered.

	19.2	 	Nothing in this clause 19 shall preclude or restrict IIPL, Global Star, GigaMedia and
Softbank from either solely or jointly with any person directly or indirectly be engaged or
interested in any business competing with the Business by reason of its participation, whether
via an equity stake or otherwise, in such business provided that:

	 	(i)	 	the relevant party has declared its interests in the competing business;
	 
	 	(ii)	 	the relevant party signs a confidentiality undertaking in favour of the Company
not to disclose any confidential or proprietary information of the Company to the
parties involved in the competing business; and
	 
	 	(iii)	 	the relevant party and the director appointed by such relevant party abstains
from voting on resolutions and participating in discussions of the Company which may:

	 	(a)	 	provide the competing business the relevant party is engaged or
interested in with a competitive advantage; or
	 
	 	(b)	 	cause the Company to compete with the competing business the
relevant party is engaged or interested in.

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	19.3	 	MCIL shall procure an undertaking from each Founder and member of the Management that it
shall not, for a period of one year following the termination of the employment or services of
such Founder or member of the Management:

	 	(a)	 	either solely or jointly with or on behalf of any person directly or indirectly
carry on or be engaged or interested in or assist any person in carrying on any
business competing with the Business;
	 
	 	(b)	 	solicit or assist any person in soliciting the custom of any person who is or
has been at any time during the term of this Agreement, a customer of the Company, for
the purpose of offering to such customer, goods or services similar to or competing
with those of the Business;
	 
	 	(c)	 	solicit or entice away or endeavour to solicit or entice away or assist any
person to solicit or entice away or endeavour to solicit or entice away any Director or
employee of the Company or of any subsidiary of the Company; or
	 
	 	(d)	 	cause or permit any person directly or indirectly under its control to do any
of the foregoing acts or things.

	19.4	 	Each undertaking contained in clause 19.1 shall be read and construed independently of the
other covenants therein contained so that if one or more should be held to be invalid as an
unreasonable restraint of trade or for any other reason whatsoever, then the remaining
covenants shall be valid to the extent that they are not held to be so invalid.

	19.5	 	While the covenants in clause 19.1 are considered by the parties to be reasonable in all the
circumstances, if one or more should be held invalid as an unreasonable restraint of trade or
for any other reason whatsoever, but would have been held valid if part of the wording thereof
had been deleted or the period thereof reduced or the range of activities or area dealt with
thereby reduced in scope, the said covenants shall apply with such modifications as may be
necessary to make them valid and effective.

	19.6	 	MCIL shall procure that an undertaking from each Founder and member of the Management that it
shall not, within a period of (a) three years or (b) one year after the listing of the Shares
on a recognised stock exchange, whichever is earlier, directly or indirectly: (1) offer, sell,
transfer, give or otherwise dispose of, (2) grant an option, right or warrant to purchase in
respect of, (3) charge, mortgage, pledge or otherwise encumber or (4) enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the legal, beneficial
or economic consequences of ownership of, all or any of the Shares held, whether directly or
indirectly, by such Founder or member of the Management or any interest therein, or (5) enter
into any agreement with a view to effecting any of the foregoing.

	20.	 	REPRESENTATIONS AND WARRANTIES

	20.1	 	Each of the parties acknowledges that it has entered into this Agreement in full reliance on
the representations made by each of the other parties in the following terms and each party
now warrants to each of the other parties:

	 	(a)	 	it is a duly established legal entity of good standing in its country of
incorporation and has the power and authority to enter into, exercise its rights and
perform and comply with its obligations under this Agreement;
	 
	 	(b)	 	all actions, conditions and things required to be taken, fulfilled or done
(including the obtaining of any necessary consents and permits) in order (i) to enable
it

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lawfully to enter into, exercise its rights and perform and comply with its
obligations under this Agreement; and (ii) to ensure that those obligations that
are valid, legally binding and enforceable have been taken, fulfilled or done;

	 	(c)	 	no order has been made or petition presented for its bankruptcy/insolvency;
	 
	 	(d)	 	no composition in satisfaction of its debts, or scheme of arrangement of its
affairs, or compromise or arrangement between it and its creditors and/or members of
any class of its creditors and/or members, has been proposed, sanctioned or approved;
	 
	 	(e)	 	no distress, distraint, charging order, garnishee order, execution or other
process has been levied or applied for in respect of the whole or any part of any of
its property, assets and/or undertaking; and
	 
	 	(f)	 	its obligations under this Agreement are valid, binding and enforceable.

	21.	 	FORCE MAJEURE

	21.1	 	If either party hereto is temporarily rendered unable, wholly or in part, by Force Majeure
(as defined below) to perform its duties or accept performance by the other party under this
Agreement, it is agreed that the affected party shall within fourteen (14) days of the
occurrence of the Force Majeure give written notice to the other party, setting out full
particulars of such Force Majeure. The duties of the party affected by such Force Majeure
shall, with the approval of the other party, be suspended during the continuance of the
disability so caused, but for no longer period, and such cause shall as far as possible be
removed with all reasonable despatch. None of the parties hereto shall be responsible for
delay caused by Force Majeure. No claim for damage or any other remedy shall arise out of any
breach of, or any failure or delay to perform any of the obligations arising under this
Agreement, if such breach, delay or failure is caused by a Force Majeure event.

	21.2	 	For the purpose of this clause 21, “Force Majeure” shall mean act of God, restraint of
government (including compliance by any party with any law, regulation, order or other rules
having force of law or intervention or action by any state or federal authority) or by any
person representing any such authority, strikes, lockouts, industrial disturbances,
explosions, fires, floods, earthquakes, storms, lightning and any other causes similar to the
kind herein enumerated which are beyond the control of either party and which by the exercise
of due care and diligence, neither party is able to overcome.

	22.	 	ARTICLES OF ASSOCIATION

In the event of any conflict between the provisions of this Agreement and the Articles,
this Agreement shall prevail and the parties shall wherever necessary procure the Articles
to be amended to reflect the provisions of this Agreement.

	23.	 	CONFIDENTIALITY

	23.1	 	No party shall divulge or communicate to any person (other than those whose province it is to
know the same or with proper authority) or use or exploit for any purpose whatsoever, any of
the trade secrets or confidential knowledge or information of the Company or any of the other
parties which the first-mentioned party may receive or obtain as a result of entering into
this Agreement, and each party shall use its reasonable endeavours to prevent its employees or
agents if any from so doing. This restriction shall continue to apply without

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limit in point in time, but shall cease to apply to information or knowledge which may
properly come into the public domain through no fault of the relevant party.

	23.2	 	For the avoidance of doubt, the terms and conditions of the transaction as set forth in the
subscription agreements entered into between each of the Shareholders and the Company shall be
considered confidential information and shall not be disclosed by any party hereto to any
third party except in accordance with clause 23.3.

	23.3	 	Notwithstanding the foregoing, any party may disclose:

	 	(a)	 	the financing terms of their investment in the Company to its current or bona
fide prospective, investors, partners, limited partners, shareholders, employees,
investment bankers, lenders, accountants and attorneys;
	 
	 	(b)	 	such information that may be required to be disclosed pursuant to any
competent governmental or statutory authority or pursuant to statute, rules or
regulations of any relevant regulatory body; and
	 
	 	(c)	 	any information which is required to be disclosed pursuant to any legal
process used by any court or tribunal in Singapore or elsewhere.

Any party disclosing information pursuant to this clause 23.3 shall exercise reasonable
efforts to obtain reliable assurance that such information disclosed shall be kept
confidential.

	23.4	 	Notwithstanding the foregoing, in the event that IIPL is requested by any entity or person
associated with the Singapore Government in connection with such entity or person’s
association with the Singapore Government to disclose the financing terms or any other
information relating to the issuance and purchase of Class A Shares to any entity or persons
associated with the Singapore Government, IIPL shall not be required to seek a protective
order, confidential treatment or other remedy with respect to such disclosure, and IIPL shall
not be required to provide notice to the parties prior to such disclosure.

	23.5	 	Without limiting the generality of other provisions in clause 23, in the event that any party
is requested by regulatory authorities or becomes legally compelled (including, without
limitation, pursuant to the relevant securities laws and regulations) to disclose the
existence of this Agreement and other relevant agreements, any of the exhibits and schedules
attached to such agreements, or any of the financing terms hereof and thereof in contravention
of the provisions of clause 23, such party (the “Disclosing Party”) shall, where applicable,
provide the other parties (the “Non-Disclosing Parties”) with prompt written notice of that
fact. In such event, the Disclosing Party shall furnish only that portion of the information
which is legally required to be disclosed and shall exercise reasonable efforts to keep
confidential such information to the extent reasonably requested by any Non-Disclosing Party.

	24.	 	CONTINUING EFFECTS OF THIS AGREEMENT

	24.1	 	This Agreement shall be binding on and shall enure for the benefit of each Shareholder’s
successors and assigns.

	24.2	 	Except for assignments and transfers to affiliates or otherwise set forth in this Agreement,
no Shareholder may assign or transfer any of its rights or obligations under this Agreement
without the prior written consent of the other Shareholders.

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	25.	 	COUNTERPARTIES

This Agreement may be signed in any number of counterparts and by the parties on separate
counterparts, each of which when duly executed shall be an original but all the
counterparts shall together constitute one and the same document.

	26.	 	NOTICES

	26.1	 	Any notice, demand or other communication required or permitted to be given or given in
connection with this Agreement shall be made in writing and may be:

	 	(a)	 	delivered by hand;
	 
	 	(b)	 	sent by registered post;
	 
	 	(c)	 	transmitted by facsimile; or
	 
	 	(d)	 	transmitted by telex;

at the address, facsimile or telex numbers and marked for the attention of the person(s)
(if any) set out in the execution pages of this Agreement or to such other address,
facsimile or telex numbers or person(s) as any party hereto may have notified to the other
parties hereto in writing at least seven (7) Business Days in advance of such change:

	26.2	 	Each notice, demand or other communication under this Agreement shall be deemed to be
received by the recipient and duly served:

	 	(a)	 	if delivered by hand, at the time of delivery;
	 
	 	(b)	 	if sent by post, seven (7) days after posting; or
	 
	 	(c)	 	if sent by facsimile or telex, be deemed to have been received upon receipt
by the sender of a facsimile transmission report (or other appropriate evidence) that
the facsimile has been transmitted to the addressee;

as the case may be, Provided that if any of the aforesaid dates when the communications are
deemed to be received and duly served fall on a day which is not a Business Day, the date
on which such communications are deemed to be received and duly served shall be on the
Business Day immediately following upon the said dates.

	27.	 	MISCELLANEOUS

	27.1	 	Each party shall bear its own costs and expenses incurred in connection with the preparation,
negotiation, finalisation and execution of this Agreement.

	27.2	 	Unless otherwise provided for in this Agreement, this Agreement and each of the subscription
agreements entered into between the Shareholders and the Company (where applicable)
constitutes the entire complete and exclusive agreement and understanding between the parties
in connection with the conduct of the Business and the operations of the Company and
supersedes all prior representations, arrangements, understandings and agreements thereon. No
party has relied on any representation, arrangement, understanding or agreement (whether
written or oral) not expressly set out or referred to in this Agreement

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or the subscription agreements entered into between each of the Shareholders and the
Company.

	27.3	 	Notwithstanding that any provision of this Agreement may prove to be illegal, void, invalid
or unenforceable, such provision shall be deemed to be deleted from this Agreement and the
remaining provisions of this Agreement shall continue in full force and effect.

	27.4	 	Each Shareholder agrees to exercise its voting rights in the Company and to take such other
steps as lie within its power to procure, that the Company shall perform and observe the
provisions of this Agreement.

	27.5	 	No purported variation, modification, amendment or cancellation of this Agreement shall be
effective unless made in writing and signed by all Shareholders.

	27.6	 	Any waiver of any breach of this Agreement shall not be deemed to apply to any succeeding
breach of the provision or of any other provision of this Agreement. No failure to exercise
and no delay in exercising on the part of any of the parties hereto any right, power or
privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise
of any right, power or privilege preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies otherwise provided by
law.

	27.7	 	Nothing in this Agreement shall constitute a partnership or establish a relationship of
principal and agent or any other relationship of a similar nature between or among any of the
parties.

	27.8	 	The parties do not intend that any term of this Agreement shall be enforceable, by virtue of
the Contract (Rights of Third Parties) Act, Chapter 53B of Singapore by any person who is not
a party to this Agreement.

	27.9	 	This Agreement is governed by, and shall be construed in accordance with, the laws of
Singapore.

	27.10	 	Each party hereto hereby submits to the jurisdiction of the Singapore Courts but this
Agreement may be enforced in any court of competent jurisdiction. Each Shareholder of the
Company irrevocably:

	 	(a)	 	submits to the non-exclusive jurisdiction of the courts of Singapore in
relation to any legal action or proceedings arising out of or in connection with this
Agreement;
	 
	 	(b)	 	consents to service of process in any manner permitted by the laws of
Singapore;
	 
	 	(c)	 	waives any objections on the ground of venue or forum non conveniens or any
similar grounds;
	 
	 	(d)	 	consents generally to relief being given against it by way of specific
performance or for the recovery of any property whatsoever and to its property being
subject to any process for the enforcement of a judgement or any other remedy
available under the laws of Singapore; and
	 
	 	(e)	 	waives and agrees not to claim any immunity from all forms or execution or
attachment to which its property is now or may hereafter become entitled under the
laws of any jurisdiction and declares that such waiver shall be effective to the
fullest extent permitted by such laws.

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IN WITNESS whereof this Agreement has been entered into the day and year first above written.

	 	 	 	 	 
	Signed by

for and on behalf of

MANAGEMENT CAPITAL

INTERNATIONAL LTD

in the presence of:

	 	)

)

)

)

)
	 	
	 
	 	 	 	 
	Address

	 	:
	 	28 Maxwell Road #04-01
	 

	 	 	 	Red Dot Traffic
	 

	 	 	 	Singapore 069120
	Facsimile No.

	 	:
	 	(65) 6294 9345
	Contact Person

	 	:
	 	Ong Toon Wah
	 
	 	 	 	 
	Signed by 

for and on behalf of

INFOCOMM INVESTMENTS PTE LTD

in the presence of:

	 	)

)

)

)
	 	
	 
	 	 	 	 
	Address

	 	:
	 	6 Temasek Boulevard #29-00
	 

	 	 	 	Suntec Tower 4 Singapore 038986
	Facsimile No.

	 	:
	 	(65) 6211 2213
	Contact Person

	 	:	 	 
	 
	 	 	 	 
	Signed by

for and on behalf of

COMMERZBANK INFOCOMM

SEGREGATED PORTFOLIO

in the presence of:

	 	)

)

)

)

)
	 	
	 
	 	 	 	 
	Address

	 	:
	 	care of 8 Shenton Way #36-01 Temasek Tower
	 

	 	 	 	Singapore 068811
	Facsimile No.

	 	:
	 	(65) 6225 6234
	Contact Person

	 	:
	 	Cheong Kum Hong/Choo Hsun Yang

34

Table of Contents

	 	 	 	 	 
	Signed by

for and on behalf of

GLOBAL STAR INTERNATIONAL

DEVELOPMENT LIMITED

in the presence of:

	 	)

)

)

)

)
	 	
	 
	 	 	 	 
	Address

	 	:
	 	34/F, The Lee Gardens, 33 Hysan Avenue,
	 

	 	 	 	Causeway Bay, Hong Kong
	Facsimile No.

	 	:	 	 
	Contact Person

	 	:
	 	Jiwei
	 
	 	 	 	 
	Signed by

or and on behalf of

ETHERFAST PTE LTD

in the presence of:

	 	)

)

)

)
	 	
	 
	 	 	 	 
	Address

	 	:
	 	28 Maxwell Road, Red Dot Traffic, #04-01
	 

	 	 	 	Singapore 069120
	Facsimile No.

	 	:
	 	(65) 6294 9345
	Contact Person

	 	:
	 	Lee Teng Teng
	 
	 	 	 	 
	Signed by

for and on behalf of

GIGAMEDIA ASIA PACIFIC LIMITED

in the presence of:

	 	)

)

)

)
	 	
	 
	 	 	 	 
	Address

	 	:
	 	14 Floor, 122 TunHwa North Road, Taipei,
	 

	 	 	 	Taiwan ROC
	Facsimile No.

	 	:
	 	+8862-8770-7576
	Contact Person

	 	:
	 	Chief Executive Officer, Arthur Wang and
	 

	 	 	 	General Counsel, Jennifer Tseng

35

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	Signed by

for and on behalf of

INFOCOMM ASIA HOLDINGS PTE.

LTD.

in the presence of:

	 	)

)

)

)

)
	 	
	 
	 	 	 	 
	Address

	 	:
	 	28 Maxwell Road Red Dot Traffic
	 

	 	 	 	#04-01 Singapore 069120
	Facsimile No.

	 	:
	 	(65) 6294 9345
	Contact Person

	 	:
	 	Ong Toon Wah
	 
	 	 	 	 
	Signed by

for and on behalf of

BODHI CHINA AND INDIA

INVESTMENTS LLC

in the presence of:

	 	)

)

)

)

)
	 	
	 
	 	 	 	 
	Address

	 	:
	 	Suite 3705, Citic Square
	 

	 	 	 	1168 Nanjing Xi Lu, Shanghai, PRC
	Facsimile No.

	 	:
	 	+86 21 5292 5822
	Contact Person

	 	:
	 	Kabir Misra

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SCHEDULE 1

The Management of the Company is as follows:

Ong Toon Wah (Chief Executive Officer)

Richard Chua Choon Kiat (Business Development Officer)

David Heng Wee Koon (Technical Director)

Roderick Chia Yeow Kheng (Chief Technology Officer)

Yeo Yeoh Chuan (Vice President, Marketing & Strategy)

Lee Jinsi (Chief Strategy Operations Officer)

37

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