Document:

Charge Over Securities, dated April 28, 2005

 EXHIBIT 4.44 
 CHARGE OVER SECURITIES 
 dated
             April 2005 
 created by 
 TOM ONLINE INC. 
 as the Chargor 

and 
 BANK OF CHINA (HONG KONG) LIMITED

 as Lender 
  
 

 
 Ref: PXF/FTWL/L-099247 

 CONTENTS 
  

					
	 CLAUSE
	 	 	  	PAGE
	 1.
	 	Interpretation	  	1
	 2.
	 	Security	  	5
	 3.
	 	Restrictions and further assurance	  	6
	 4.
	 	Charged Securities	  	8
	 5.
	 	Mark-to-market arrangements	  	9
	 6.
	 	General undertakings	  	10
	 7.
	 	Representations and warranties	  	12
	 8.
	 	Enforcement Events	  	14
	 9.
	 	Enforcement	  	15
	 10.
	 	Lender‘s rights	  	16
	 11.
	 	Order of distributions	  	16
	 12.
	 	Liability of Lender and Delegates	  	17
	 13.
	 	Power of attorney	  	17
	 14.
	 	Protection of third parties	  	17
	 15.
	 	Saving provisions	  	18
	 16.
	 	Discharge of Security	  	20
	 17.
	 	Expenses, stamp duty and interest	  	20
	 18.
	 	Payments	  	21
	 19.
	 	Tax Gross Up and Indemnities	  	22
	 20.
	 	Conduct of business by the Lender	  	23
	 21.
	 	Other Indemnities	  	23
	 22.
	 	Set-off	  	25
	 23.
	 	Rights, amendments, waivers and determinations	  	25
	 24.
	 	Partial invalidity	  	26
	 25.
	 	Notices	  	26
	 26.
	 	Counterparts	  	27
	 27.
	 	Assignment and Participation	  	27
	 28.
	 	Governing law	  	27
	 29.
	 	Jurisdiction	  	27

 THE SCHEDULES 
  

			
	 SCHEDULE
	  	PAGE
	 SCHEDULE 1 Rights of Lender
	  	28
	 SCHEDULE 2 Securities
	  	30
	 SCHEDULE 3 CCASS definitions
	  	31
	 SCHEDULE 4 Form of Release Request
	  	33

 THIS DEED is dated
             April 2005 and made between: 
  

	(1)	TOM ONLINE INC. a company incorporated in the Cayman Islands having a principal place of business in Hong Kong at 48th Floor, The Center, 99 Queen’s Road Central, Hong Kong as chargor (the “Chargor”); and 

  

	(2)	BANK OF CHINA (HONG KONG) LIMITED as lender (the “Lender”, which expression includes its successors and assigns). 

 Background 
  

	(A)	The Chargor is entering into this Deed in connection with the Finance Documents (as defined below). 

  

	(B)	The Board of Directors of the Chargor is satisfied that entering into this Deed is for the purposes and to the benefit of the Chargor and its business. 

  

	(C)	The Lender and the Chargor intend this document to take effect as a deed of the Chargor (even though the Lender only executes it under hand). 

 This Deed witnesses the following: 
  

	1.	INTERPRETATION 

  

	1.1	Definitions 

 In this Deed, unless a contrary
indication appears, terms used in the Facility Letter have the same meaning and construction. In addition: 
 “Alternative
Securities” means: 
  

	 	(a)	any Eligible Securities from time to time subject, or expressed to be subject, to the Charges; and 

  

	 	(b)	all rights relating to such Eligible Securities which are deposited with, or registered in the name of, any depositary, custodian, nominee, clearing house or system, investment
manager, chargee or other similar person or their nominee, in each case whether or not on a fungible basis (including rights against any such person), 

 in each case now or in the future owned by the Chargor or (to the extent of its interest) in which it now or in the future has an interest. 
 “Authorisation” means an authorisation, consent, approval, resolution, licence, exemption, filing or registration. 
 “Business Day” means a day (other than a Saturday or a Sunday) on which banks are open for general business in Hong Kong. 
 “Charged Assets” means all or such part of the Securities and any Alternative Securities from time to time subject, or expressed to be subject, to the Charges. For the avoidance of doubt, the Charged
Assets do not include all or any part of the Securities and any Alternative Securities released under Clause 5.4 (Permitted releases) 
 “Charges” means all or any of the Security created or expressed to be created by or pursuant to this Deed. 
  

 1 

 “Clearing Accounts” means the accounts and records which a Clearing System maintains or
at any time in the future may open in the name of the Chargor in respect of any Charged Assets. 
 “Clearing System” means
each of (i) Clearstream Banking, socíeté anonyme; (ii) Euroclear Bank S.A./N.V., as operator of the Euroclear System; (iii) the Hong Kong Monetary Authority acting as operator of the Central Moneymarkets Unit Service;
(iv) the Depositary Trust Corporation, a New York Corporation; (v) the Central Clearing and Settlement System implemented by the Hong Kong Securities Clearing Company Limited and any other clearing system agreed by the Chargor and Lender.

 “Companies Ordinance” means the Companies Ordinance (Cap. 32) of the Laws of Hong Kong. 
 “CPO” means the Conveyancing and Property Ordinance (Cap. 219) of the Laws of Hong Kong. 
 “Delegate” means a delegate or sub-delegate appointed under Clause 10.2 (Delegation). 
 “Eligible Issuer” means any banks or sovereigns or supranational institution rated AAA by Standard & Poor’s Ratings Group
or such other credit rating agencies acceptable to the Lender. 
 “Eligible Securities” means bonds, notes or other debt
securities: 
  

	 	(a)	rated AAA by Standard & Poor’s Ratings Group or such other credit rating agencies acceptable to the Lender; 

  

	 	(b)	issued by an Eligible Issuer; and 

  

	 	(c)	the maturity date of which is on or before 31 December 2009. 

 “Enforcement Event” means one of the events or circumstances mentioned in Clause 8 (Enforcement Events). 
 “Facility Letter” means the facility letter dated 27 April 2005 issued by the Lender to, and acknowledge by, the Chargor. 
 “Finance Documents” means: 
  

	 	(a)	the Facility Letter; 

  

	 	(b)	this Deed; and 

  

	 	(c)	any document designated by the Chargor and the Lender as a Finance Document. 

 “GAAP” means generally accepted accounting principles, standards and practices in the United States of America. 
 “Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of China. 
 “Interest” means all present and future: 
  

	 	(a)	interest and distributions of any kind and any other cash or securities or investments received or receivable in respect of any of the Charged Assets; and 

 

	 	(b)	all other rights attaching to, deriving from, relating to or exercisable by virtue of the ownership of any of the Charged Assets. 

  

 2 

 “Liabilities” means all present and future moneys, debts and liabilities due, owing or
incurred by the Chargor to the Lender under or in connection with any Finance Document (in each case, whether alone or jointly, or jointly and severally, with any other person, whether actually or contingently and whether as principal, surety or
otherwise). 
 “Material Adverse Effect” means a material adverse effect on: 
  

	 	(a)	the financial condition, assets, prospects or business of the Chargor; 

  

	 	(b)	the ability of the Chargor to perform and comply with its obligations under any Finance Document; 

  

	 	(c)	the validity, legality or enforceability of any Finance Document; or 

  

	 	(d)	the validity, legality or enforceability of any Security expressed to be created pursuant to this Deed or on the priority and ranking of any of the Charges.

 “Market Value” means the daily closing price of the Charged Assets so long as they are listed on a stock
exchange (as derived from the daily quotation sheet of The Stock Exchange of Hong Kong Limited or equivalent sheet or list on such other stock exchange on which the Charged Assets are listed) on the dealing day immediately preceding such date
multiplied by the number of the relevant Charged Assets. If the Charged Assets are not listed on a stock exchange, the Market Value of such Charged Assets shall be determined, at the expense of the Chargor, by valuation made by a reputable,
professional valuers appointed by the Lender and shall be made on the basis as reasonably determined by such professional valuers and the Lender. 
 “Original Financial Statements” means in relation to the Chargor, its audited consolidated financial statements for its financial year ended 31 December 2004. 
 “Party” means a party to this Deed and includes its successors in title, permitted assigns and permitted transferees. 
 “Release Request” means a notice substantially in the form set out in Schedule 4 (Form of Release Request). 
 “Security” means a mortgage, charge, pledge, lien, assignment or other security interest securing any obligation of any person or any
other agreement or arrangement having a similar effect. 
 “Security Value” means in respect of the Charged Assets and any
Alternative Securities which are (or are intended to be) Charged Assets, the lower of the Market Value and the face value of that the Charged Assets and such Alternative Securities. 
 “Securities” means: 
  

	 	(a)	all securities and investments described in Schedule 2 (Securities); and 

  

	 	(b)	all rights relating to those securities and investments mentioned in paragraph (a) above which are deposited with, or registered in the name of, any depositary, custodian,
nominee, clearing house or system, investment manager, chargee or other similar person or their nominee, in each case whether or not on a fungible basis (including rights against any such person), in each case owned by the Chargor or (to the extent
of its interest) in which it has an interest. 

  

 3 

 “Securities Certificates” means the certificates or documents which evidenced the
ownership of the Charged Assets or representing the Charged Assets. 
 “Subsidiary” means in relation to any company,
corporation or other legal entity, (a “holding company”), a company, corporation or other legal entity: 
  

	 	(a)	which is controlled, directly or indirectly, by the holding company; 

  

	 	(b)	more than half the issued share capital of which is beneficially owned, directly or indirectly, by the holding company; or 

  

	 	(c)	which is a subsidiary of another Subsidiary of the holding company, 

 and, for this purpose, a company or corporation shall be treated as being controlled by another if that other company or corporation is able to determine the composition of the majority of its board of directors or
equivalent body. 
 “Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any
penalty or interest payable in connection with any failure to pay or any delay in paying any of the same). 
 “Winding-up” of
a person also includes the amalgamation, reconstruction, administration, dissolution, liquidation, merger or consolidation of that person, and any analogous procedure or step in any jurisdiction. 
  

	1.2	Construction 

  

	 	(a)	Any reference in this Deed to: 

  

	 	(i)	“assets” includes present and future properties, revenues and rights of every description; 

  

	 	(ii)	a “Finance Document” or any other agreement, deed or instrument is to a reference to that Finance Document or other agreement, deed or instrument as amended or
novated; 

  

	 	(iii)	“indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or
contingent; 

  

	 	(iv)	a “person” includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having
separate legal personality) or two or more of the foregoing; 

  

	 	(v)	a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental,
intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 

  

	 	(vi)	a provision of law is a reference to that provision as amended or re-enacted from time to time unless the context requires otherwise; 

  

 4 

	 	(vii)	words importing the singular number shall include the plural number and vice versa, words importing the masculine, feminine gender or neuter gender shall include the others of them;
and 

  

	 	(viii)	unless otherwise stated, references to Clauses and Schedules are to clauses of and schedules to this Deed. 

  

	 	(b)	The terms of Schedule 3 (CCASS definitions) shall apply, in addition to all other terms of this Deed, to any Charged Assets held or to be held (whether by the Chargor, the
Lender, any nominee or delegate or any other person) through the Central Clearing and Settlement System established and operated by the Hong Kong Securities Clearing Company Limited. 

  

	 	(c)	Clause and Schedule headings are for ease of reference only. 

  

	 	(d)	Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Deed. 

  

	 	(e)	An Enforcement Event is “continuing” if it has not been waived. 

  

	2.	SECURITY 

  

	2.1	Equitable Charge 

 The Chargor as beneficial owner
of the Securities and as legal and beneficial owner of the Clearing Accounts and as continuing security for the due and punctual payment and discharge of all Liabilities: 
  

	 	(a)	charges in favour of the Lender by way of first fixed charge, all its rights, title and interest present and future in and to the Charged Assets and Interest except to the extent
that the rights will be subject to an assignment under paragraph (c) below; 

  

	 	(b)	charges, assigns and agrees to assign absolutely to the Lender by way of a first fixed charge, all its right, title and interest present and future in respect of or represented by
the Clearing Accounts except to the extent that the rights will be subject to an assignment under paragraph (c) below; and 

  

	 	(c)	assigns, and agrees to assign absolutely to the Lender all its rights (including those rights it may have against a nominee), present and future relating to any of the Charged
Assets and Clearing Accounts, including without limitation: 

  

	 	(i)	its rights against a Clearing System, including rights relating to or against any depositary, custodian, nominee, clearing house or system, investment manager or similar person with
whom any of the Charged Assets may be deposited to the extent of those Charged Assets; 

  

	 	(ii)	rights it may have against any person to require delivery to it of any of the Charged Assets; 

  

	 	(iii)	rights (contractually or otherwise) to give instructions relating to the Charged Assets or Clearing Accounts; and 

  

 5 

	 	(iv)	all claims for damages and rights to receive moneys due or to become due for any reason whatsoever in respect of any of the Charged Assets or Clearing Accounts

 including those rights it may have against a nominee or Delegate. 
  

	2.2	Further documents 

 The Chargor shall, together with
the delivery of any Charged Assets to the Lender deliver to the Lender, or as it directs, any documents relating to such Charged Assets and Clearing Accounts which the Lender requires. Subject to the terms of this Deed, the Chargor agrees that at
any time after the date of this Deed, the Lender may, at the cost of the Chargor, instruct the relevant Clearing System to transfer those Charged Assets that are deposited therein into an account in the name, or nominated by, the Lender. 

 

	2.3	Retention of documents 

 The Lender shall be
entitled to continue to hold any document delivered to it pursuant to Clause 3.3 (Delivery of documents) until the Charges are released and if, for any reason, it releases any such document to the Chargor before such time, it may by notice to
the Chargor require that such document be redelivered to it and the Chargor shall immediately comply with that requirement or procure that it is complied with. 
  

	3.	RESTRICTIONS AND FURTHER ASSURANCE 

  

	3.1	Security 

 The Chargor shall not create or permit to
subsist any Security over the Charged Assets except the Charges. 
  

	3.2	Disposal 

 The Chargor shall not (nor agree to)
enter into a single transaction or a series of transactions (whether related or not and whether voluntary or involuntary) to sell, lease, withdraw, transfer or otherwise dispose of the Charged Assets except as permitted by Clause 5
(Mark-to-Market Arrangements) save, in the case of Interest, as permitted by Clause 4.3 (Interest). 
  

	3.3	Delivery of documents 

 In addition to the
requirements under Clause 2.2 (Further Documents) the Chargor shall deliver or procure that there shall be delivered to the Lender such documents relating to the Securities as the Lender requires and the following documents (in form and
substance satisfactory to the Lender) upon execution of this Deed which may be held by the Lender until the Charge is released: 
  

	 	(a)	in respect of any Securities that are not in a Clearing System, 

  

	 	(i)	valid and duly issued Securities Certificates in respect of those Securities; 

  

	 	(ii)	duly executed transfer form in respect of those Securities but with the dates and names of the transferees left blank; and 

  

	 	(iii)	all other documents necessary or conducive to enable the Lender to register such Securities in its name or in the name of its nominees; 

  

 6 

	 	(b)	in respect of those Securities that are to be deposited into a Clearing System, all other documentation (including, without limitation, duly executed transfer form in respect
thereof, duly signed and completed) required to enable those Securities to be deposited into that Clearing System; 

  

	 	(c)	in respect of those Securities that are in a Clearing System, such documents as are necessary to procure that those Charged Assets will be credited to the Lender or, as appropriate,
its nominee’s relevant securities account with that Clearing System. 

  

	3.4	Perfection and registration 

 The Chargor will (and,
if applicable, will procure that its nominees): 
  

	 	(a)	in relation to any Charged Assets that are not deposited into a Clearing System, immediately upon the completion of any transfer of Charged Assets to the Lender or its nominee, use
reasonable endeavours to procure the registration of those transfers in the books of the company and the entry of the Lender and/or its nominee in the register of securities (if any) of that company as the holder of such Charged Assets; and

  

	 	(b)	in respect of any Alternative Securities (if any) which become subject to the Charges after the date of this Deed that are not in a Clearing System: 

  

	 	(i)	valid and duly issued Securities Certificates in respect of those Alternative Securities; 

  

	 	(ii)	duly executed transfer form in respect of those Alternative Securities but with the dates and names of the transferees left blank; and 

  

	 	(iii)	all other documents necessary or conducive to enable the Lender to register such Alternative Securities in its name or in the name of its nominees; 

  

	 	(c)	in respect of those Alternative Securities (if any) which become subject to the Charges after the date of this Deed that are to be deposited into a Clearing System, provide the
Lender with all documentation (including, without limitation, duly executed transfer form in respect thereof, duly signed and completed) required to enable such Alternative Securities to be deposited in that Clearing System as eligible securities;
and 

  

	 	(d)	in respect of those Alternative Securities (if any) which become subject to the Charges after the date of this Deed that are in a Clearing System, arrange for such Alternative
Securities to be credited to the Lender’s or its nominee’s securities account. 

  

	3.5	Further assurance 

 The Chargor shall promptly do
whatever the Lender requires: 
  

	 	(a)	to perfect or protect the Charges or the priority of the Charges; or 

  

	 	(b)	to facilitate the realisation of the Charged Assets or the exercise of any rights vested in the Lender or any Delegate, 

 including executing any transfer, conveyance, charge, mortgage, assignment or assurance of the Charged Assets (whether to the Lender or its nominees or
otherwise), making any registration and giving any notice, order or direction. 
  

 7 

	4.	CHARGED SECURITIES 

  

	4.1	Voting and other rights 

 Subject to Clause 4.2
(Voting and other Rights if the Charges become Enforceable), the Chargor shall be entitled to exercise or direct the exercise of the voting and other rights attached to any Charged Assets as it sees fit provided that: 
  

	 	(a)	it does so for a purpose not inconsistent with any Finance Document; and 

  

	 	(b)	the exercise or failure to exercise those rights would not have an adverse effect on the value of the Charged Assets and would not otherwise prejudice the interests of the Lender.

  

	4.2	Voting and other rights if the Charges become Enforceable 

 At any time while an Enforcement Event is continuing: 
  

	 	(a)	the Lender shall be entitled to exercise or direct the exercise of the voting and other rights attached to any Charged Assets as it sees fit; and 

  

	 	(b)	the Chargor shall comply or procure the compliance with any directions of the Lender in respect of the exercise of those rights and shall promptly execute and/or deliver to the
Lender such forms of proxy as it may require in connection with that exercise. 

  

	4.3	Interest 

  

	 	(a)	Until the Charges become enforceable, the Chargor shall be entitled to retain any cash income derived from the Charged Assets as an ordinary distribution. Thereafter, the Chargor
shall hold any such cash income received by it on trust for the Lender and pay the same immediately to the Lender as it may direct. The Lender shall be entitled to apply the same towards the payment of the Liabilities in such manner as it sees fit.

  

	 	(b)	After the Charges have become enforceable, the Chargor will direct that any Interest or other payments which it or its nominee as holder thereof may be entitled to receive in
respect of any of the Charged Assets be paid to the Lender for payment of the Liabilities in accordance with the relevant provisions in the Facility Letter. 

  

	4.4	Payment of Interest 

 The Chargor shall promptly
notify the Lender of the declaration, payment, allotment, offer or issue of any Interest. 
  

	4.5	Communications 

 The Chargor shall promptly deliver
to the Lender a copy of every circular, notice, report, set of accounts or other documents received by it or its nominee in connection with the Charged Assets or in connection with or from the issuer of any of the Charged Assets. 
  

	4.6	Power of Attorney 

 If any of the Charged Assets is
not held in the Chargor’s name other than pursuant to this Deed, the Chargor shall promptly execute and deliver to the Lender an irrevocable power of attorney, expressed to be given by way of security and executed as a deed by the person in
whose name such Charged Assets is held. That power of attorney shall appoint the Lender and every Delegate the attorney of the holder and shall be in such form as the Lender requires. 
  

 8 

	5.	MARK-TO-MARKET ARRANGEMENTS 

  

	5.1	Loan-to-value ratio 

 The Chargor shall ensure that
the aggregate principal amount of the outstanding Loan at any time does not exceed 95% of the aggregate Security Value of the Charged Assets. 
  

	5.2	Replacement of Securities 

  

	(a)	If the Chargor is not in compliance with Clause 5.1 (Loan-to-value ratio), the Chargor shall, as soon as reasonably practicable and in any event within 14 Business Days
following receipt of notice from the Lender specifying such breach: 

  

	 	(i)	repay such part of the Loan; and/or 

  

	 	(ii)	provide additional Eligible Securities as security for the Liabilities in favour of the Lender, 

 in each case in an amount or as to a Security Value reasonably determined by the Lender so as to ensure that the amount of the Loan does not exceed 95% of
the Security Value of the Charged Assets. 
  

	(b)	In the event when the rating of any of the Charged Assets drops below AA- (rated by Standard & Poor’s Rating Group), the Chargor shall within 14 Business Days of such
decrease of rating: 

  

	 	(i)	repay such part of the Loan; or 

  

	 	(ii)	with the prior written consent of the Lender (whose consent shall not be unreasonably withheld), replace the downgraded Charged Assets with other Eligible Securities which has a
face value at least equal to the face value of the downgraded Charged Assets, 

 in each case in an amount or as to a Security
Value reasonably determined by the Lender so as to ensure that the amount of the Loan does not exceed 95% of the aggregate Security Value of the Charged Assets. 
  

	(c)	Subject to Clause 5.3 (Permitted releases), after obtaining consent of the Lender (whose consent shall not be unreasonably withheld), the Chargor may replace all or any part
of the Charged Assets with other Eligible Securities. 

  

	(d)	In the event that any Alternative Securities that are charged pursuant to paragraph (a), (b) or (c) above are owned: 

  

	 	(i)	by any person who is not the Chargor, that person will be required to execute a deed of accession pursuant to this Deed in a form and substance satisfactory to the Lender; or

  

	 	(ii)	by the Chargor but such Alternative Securities are not be fully covered by the Charges: 

  

	 	(A)	execute any other documents necessary to create or perfect Security over those Alternative Securities; and 

  

	 	(B)	provide any other necessary documents and perform any other relevant acts and things as may be reasonably required by the Lender for creating or perfecting Security over those
Alternative Securities. 

  

 9 

	5.3	Permitted releases 

  

	(a)	In the event when the Chargor is entitled to replace all or any part of the Charged Assets with other Eligible Securities under Clause 5.2(b) or (c) (Replacement of
Securities), the Chargor shall issue a Release Request to the Lender and the Lender will, subject to the signing of any document(s) that is/are necessary for such release and subject to paragraph (b) below, on receiving that Release
Request, arrange for the relevant release, which shall take place simultaneously with such replacement of Charged Assets. 

  

	(b)	The Lender will arrange for a release under paragraph (a) above if it is satisfied that the following conditions have been complied with: 

  

	 	(i)	upon the replacement of such Charged Assets with other Eligible Securities under Clause 5.2(b) or (c) (Replacement of Securities), the aggregate principal amount of the
outstanding Loan would not exceed 95% of the Security Value of the Charged Assets as at such date of replacement; 

  

	 	(ii)	the replacement Eligible Securities will be subject to the Charges; 

  

	 	(iii)	the Release Request is accompanied by a certificate signed by a director of the Chargor confirming that no Enforcement Event has occurred which is continuing on the date of that
Release Request or will occur as a result of the requested release; 

  

	 	(iv)	no Enforcement Event has occurred which is continuing on the date of the Release Request and no Enforcement Event occurs on or before the date of that release or will occur as a
result of that release; 

  

	 	(v)	the Chargor may not submit more than two Release Requests in any one week. 

  

	(c)	Subject to compliance with paragraphs (a) and (b) above, the Lender will arrange for the release all or such part of the Charged Assets to be completed as soon as
reasonably practicable, but in any event not later that 7 Business Days after receiving a Release Request and each accompanying certificate referred to under sub-clause (b)(iv) above. The Chargor shall deliver the replacing Eligible Securities at
the same time as the release of all or such part of the Charged Assets. 

  

	6.	GENERAL UNDERTAKINGS 

  

	6.1	Authorisations 

  

	 	(a)	The Chargor shall promptly: 

  

	 	(i)	obtain, comply with and do all that is necessary to maintain in full force and effect; and 

  

	 	(ii)	supply certified copies to the Lender of, 

 any
Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its
jurisdiction of incorporation of any Finance Document. 
  

	 	(b)	The Chargor shall promptly make the registrations specified at the end of Clause 7.5 (Validity and admissibility in evidence) within any prescribed time limit(s).

  

 10 

	6.2	Compliance with laws 

 The Chargor shall comply in
all respects with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations under the Finance Documents. 
  

	6.3	No prejudicial conduct 

 The Chargor shall not do,
or permit to be done, anything which could prejudice the Charges. 
  

	6.4	Information 

 The Chargor shall: 
  

	 	(a)	notify the Lender of: 

  

	 	(i)	the occurrence of any Enforcement Event or any event or circumstance which would (with the expiry of a grace period, the giving of notice, the making of any determination under the
Finance Documents or any combination of the foregoing) be an Enforcement Event (and of the steps, if any, being taken to remedy it) promptly upon becoming aware of it; and 

  

	 	(ii)	any litigation, arbitration or administrative proceeding referred to in Clause 7.14 (No proceedings pending or threatened); 

  

	 	(b)	promptly deliver to the Lender such further information regarding the financial condition, business and operations of it as the Lender may reasonably request.

  

	6.5	Merger 

 The Chargor shall not enter into any
amalgamation, demerger, merger or corporate reconstruction. 
  

	6.6	Books of Account 

 The Chargor shall keep proper
records and books of account in respect of its business. 
  

	6.7	Discharge other debts 

 The Chargor shall punctually
pay and discharge all debts and obligations which by law have priority over the Charges. 
  

	6.8	Eligible Securities 

 The Chargor shall ensure that
all assets charged or to be charged under this Deed are Eligible Securities. 
  

	6.9	Depreciation of Charged Assets 

 The Chargor shall
not do or cause or permit to be done anything which may in any way depreciate, jeopardise or otherwise prejudice the value of the Charged Assets. 
  

	6.10	Registration at Companies Registry 

 If the Charges
are required to be registered under section 80 or 91 of the Companies Ordinance, the Chargor shall ensure that details of this Deed are registered, either by or on behalf of the Lender or by the Chargor (in a form satisfactory to the Lender), with
the Hong Kong Companies Registry within 5 weeks of the date of this Deed. 
  

 11 

	7.	REPRESENTATIONS AND WARRANTIES 

 The Chargor makes
the representations and warranties set out in this Clause 7 to the Lender on the date of this Deed or, in relation to any Alternative Securities delivered to the Lender after the date of this Deed, on the date of such delivery. 
  

	7.1	Status 

  

	 	(a)	It is a corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation. 

  

	 	(b)	It has the power to own its assets and carry on its business as it is being conducted. 

  

	7.2	Binding obligations 

 The obligations expressed to
be assumed by it in each Finance Document are legal, valid, binding and enforceable, subject to: 
  

	 	(a)	any general principles of law limiting its obligations or the enforceability of the Security expressed to be created by any Finance Document which are specifically referred to in
any legal opinion delivered pursuant to a Finance Document; or 

  

	 	(b)	in the case of this Deed, the requirements specified at the end of Clause 7.5 (Validity and admissibility in evidence). 

  

	7.3	Non-conflict with other obligations 

 The entry into
and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with: 
  

	 	(a)	any law or regulation applicable to it; 

  

	 	(b)	its constitutional documents; or 

  

	 	(c)	any agreement or instrument binding upon it or any of its assets, 

 nor (except for the Charges) result in the existence of, or oblige it to create, any Security over any of its assets. 
  

	7.4	Power and authority 

 It has the power to enter
into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the transactions contemplated by those Finance Documents. 
  

	7.5	Validity and admissibility in evidence 

 All
Authorisations required or desirable: 
  

	 	(a)	to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents to which it is a party; 

  

	 	(b)	to make the Finance Documents to which it is a party admissible in evidence in its jurisdiction of incorporation; and 

  

	 	(c)	to enable it to create the Charges and to ensure that the Charges have and will have the priority and ranking which they are expressed to have, have been obtained or effected and
are in full force and effect save for the making of the appropriate registrations of this Deed with the Hong Kong Companies Registry (if required) and the entering of the Charges in its Register of Mortgages and Charges at its registered office.

  

 12 

	7.6	Governing law and enforcement 

  

	 	(a)	The choice of Hong Kong law as the governing law of this Deed will be recognised and enforced in its jurisdiction of incorporation. 

  

	 	(b)	Any judgment obtained in Hong Kong in relation to this Deed will be recognised and enforced in its jurisdiction of incorporation. 

  

	7.7	Deduction of Tax 

 It is not required under the law
of its jurisdiction of incorporation to make any deduction for or on account of Tax from any payment it may make under any Finance Document. 
  

	7.8	No filing or stamp Taxes 

 Save and except for the
registration (if required) under Clause 7.5 (Validity and admissibility in evidence) under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other
authority in that jurisdiction. 
  

	7.9	No default 

  

	 	(a)	No Enforcement Event or event or circumstance which would (with the expiry of a grace period (if any), the giving of notice, the making of any determination under the Finance
Documents or any combination of any of the foregoing) be an Enforcement Event is continuing, or might reasonably be expected to result from the entry into or performance of, or the transactions contemplated by, any Finance Document.

  

	 	(b)	No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its
(or its Subsidiaries’) assets are subject which might have a Material Adverse Effect. 

  

	7.10	Financial statements 

  

	 	(a)	Its Original Financial Statements were prepared in accordance with GAAP consistently applied. 

  

	 	(b)	Its Original Financial Statements fairly represent its financial condition and operations as at the end of and for the relevant financial year. 

  

	 	(c)	There has been no material adverse change in its business or financial condition since 31 December 2004. 

  

	7.11	Ranking 

  

	 	(a)	Subject to the requirements specified at the end of Clause 7.5 (Validity and admissibility in evidence) this Deed creates in favour of the Lender the Security which it is
expressed to create with the ranking and priority it is expressed to have. 

  

	 	(b)	Without limiting paragraph (a) above, its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated
creditors, except for obligations mandatorily preferred by law applying to companies generally. 

  

 13 

	7.12	Ownership 

  

	 	(a)	The Chargor is the sole, absolute, beneficial owner of the Securities. 

  

	 	(b)	Except as permitted by Clause 3.2 (Disposals), the Chargor has not sold or otherwise disposed of the Securities nor agreed to do so. 

  

	 	(c)	Prior to any transfer to the Lender or its nominee, the relevant Clearing System is the legal owner of those Securities that are deposited with such Clearing System.

  

	7.13	Fully Paid 

 There are no moneys or liabilities
outstanding or payable in respect of any of the Securities. 
  

	7.14	No proceedings pending or threatened 

 No
litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which, if adversely determined, might reasonably be expected to have a Material Adverse Effect have (to the best of its knowledge and belief) been
started or threatened against it. 
  

	7.15	No existing Security 

 Except for the Charges, no
Security exists on or over the Securities. 
  

	7.16	Winding-up 

 No meeting has been convened, order
made or resolution passed for its Winding-up, no such step is intended by it and, so far as it is aware, no petition, application or the like is outstanding for its Winding-up. 
  

	7.17	Repetition 

 Each of the representations and
warranties in Clauses 7.1 (Status), 7.6 (Governing law and enforcement) and 7.9 (No default) to 7.14 (No proceedings pending or threatened) are deemed to be made by the Chargor by reference to the facts and circumstances
then existing at all times during the continuance of this Security provided that if any Alternative Securities are delivered to the Lender in accordance with the terms of this Deed, the references to “Securities” in Clause 7.12
(Ownership) shall also include references to “Alternative Securities” so delivered. 
  

	8.	ENFORCEMENT EVENTS 

 Each of the following is an
Enforcement Event: 
  

	8.1	Ownership of the Chargor 

 The Chargor is not or
ceases to be a Subsidiary of TOM Group Limited. 
  

	8.2	Events of Default 

 Any Event of Default under the
Facility Letter. 
  

	8.3	Security not in full force 

 The Charges or any part
of them cease to be in full force and effect or are terminated or jeopardised or become invalid or unenforceable or there is any dispute regarding them or there is any purported termination of them or it becomes impossible or unlawful for the
Chargor to perform any of its obligations under this Deed or for the Lender to exercise all or any of its rights, powers or remedies under this Deed. 
  

 14 

	8.4	Authorisations ceased 

 Any of the Authorisations
required from the government or other authorities (in connection with the execution, validity or performance of this Deed) is not granted or ceases to be in full force and effect; or if any law, regulation, judgment or order suspends, varies,
excuses or terminates the Chargor’s obligations under this Deed. 
  

	8.5	Clearing Systems 

 The Chargor fails to comply in
any material respect with any of its obligations under the rules of any relevant Clearing System which would have a material adverse effect on the ability of the Lender to exercise rights under this Deed. 
  

	8.6	Similar effect 

 Any event which has a similar
effect to any of the events in this Clause 8 occurs in relation to any third party which has (in the present or future) provided security for or guaranteed or provided an indemnity in respect of any Liabilities. 
  

	9.	ENFORCEMENT 

  

	9.1	When enforceable 

 As between the Chargor and the
Lender the Charges shall be enforceable, on the occurrence of an Enforcement Event and the Lender: 
  

	 	(a)	may enforce all or any part of any Charges (at the times, in the manner and on the terms it thinks fit) and take possession and hold or dispose of all or any part of the Charged
Assets; and 

  

	 	(b)	whether or not it has appointed a receiver, to the extent that such powers, authorities and discretions given to mortgagees and receivers by the CPO are applicable to the Charged
Assets, may exercise all or any of the powers, authorities and discretions given to mortgagees and receivers by the CPO as varied or extended by this Deed or otherwise conferred by law. 

  

	9.2	Power of sale 

 To the extent that such provisions
in the CPO are applicable to the Charged Assets, the statutory power of sale, of appointing a receiver and the other statutory powers conferred on mortgagees by Section 51 (Powers of Mortgagee and Receiver) and Section 53 (Sale
by Mortgagee) of the CPO and the Fourth Schedule (Powers of Mortgagee and Receiver) to the CPO as varied and extended by this Deed shall arise on the date of this Deed and no restriction imposed by any ordinance or other statutory
provision in relation to the exercise of any power of sale shall apply to this Deed. 
  

	9.3	No requirement of notice period 

 The Lender is not
required to give any prior notice of non-payment or default to the Chargor before enforcing the Charges, there is no minimum period for which Liabilities must remain due and unpaid before the Charges can be enforced and Paragraph 11 of the Fourth
Schedule to the CPO (Powers of Mortgagee and Receiver) (and any similar provision under other laws) does not apply to this Deed. 
  

 15 

	9.4	No Liability as mortgagee in possession 

 Nothing
done by or on behalf of the Lender pursuant to this Deed shall render it liable to account as a mortgagee in possession for any sums other than actual receipts. 
  

	9.5	Wide construction of enforcement powers 

 The powers
of the Lender under this Deed shall be construed in the widest possible sense and all Parties intend that the Lender shall have as wide and flexible a range of powers as may be conferred (or, if not expressly conferred, as is not restricted) by any
applicable law. 
  

	10.	LENDER ‘S RIGHTS 

  

	10.1	Rights of Lender 

 At any time after the Charges
become enforceable, the Lender shall have the rights set out in Schedule 1 (Rights of Lender). 
  

	10.2	Delegation 

 The Lender may delegate in any manner
to any person any rights exercisable by the Lender under any Finance Document. Any such delegation may be made upon such terms and conditions (including power to sub-delegate) as the Lender thinks fit. 
  

	10.3	Realisation 

  

	 	(a)	If the Lender exercises the rights conferred on it by paragraph (b) of Schedule 1 (Rights of Lender) the same shall not be treated as an absolute appropriation of or
foreclosure on the Charged Assets to the exclusion of the Chargor and in extinguishment of its interests therein, unless the Lender shall otherwise notify the Chargor (whether before or after the relevant appropriation or foreclosure has been
effected), in which latter event any such appropriation or foreclosure shall be treated as a sale of the Charged Assets at a fair market value and the Liabilities shall be reduced by an equivalent amount. 

  

	 	(b)	In any disposal pursuant to paragraph (b) of Schedule 1 (Rights of Lender), the Lender may, provided that they shall first have used reasonable efforts to dispose of the
relevant Charged Assets or rights to third parties subject to compliance with any rules or regulations laid down by any governmental or other agency or authority, themselves purchase the whole or any part of the Charged Assets or rights disposed of
free from any rights of redemption on the part of the Chargor which are hereby waived and released. 

  

	11.	ORDER OF DISTRIBUTIONS 

  

	11.1	Application of proceeds 

 All amounts received or
recovered by the Lender or any Delegate in exercise of their rights under this Deed shall be applied in the order provided in Clause 11.2 (Order of distributions). 
  

	11.2	Order of distributions 

 The order referred to in
Clause 11.1 (Application of proceeds) is (subject to Clause 15.5 (Appropriations)): 
  

	 	(a)	in or towards the payment of all reasonable costs, losses, liabilities and expenses of and incidental to the appointment of any Delegate and the exercise of any of his rights,
including his remuneration and all reasonable outgoings paid by him; 

  

 16 

	 	(b)	in or towards the payment of the Liabilities in such order as the Lender thinks fit; and 

  

	 	(c)	in payment of any surplus to the Chargor or other person entitled to it. 

  

	12.	LIABILITY OF LENDER AND DELEGATES 

  

	 	(a)	Neither the Lender nor any Delegate shall (either by reason of taking possession of the Charged Assets or for any other reason and whether as mortgagee in possession or otherwise)
be liable to the Chargor or any other person for any costs, losses, liabilities or expenses relating to the realisation of any Charged Assets or from any act, default, omission or misconduct of the Lender, any Delegate or their respective officers,
employees or agents in relation to the Charged Assets or in connection with the Finance Documents except to the extent caused by its or his own gross negligence or wilful misconduct. 

  

	 	(b)	Nothing in this Deed shall be construed as placing on the Lender any liability whatsoever in respect of any calls, instalments or other payments relating to any of the Charged
Assets or any rights, shares or other securities accruing, offered or arising as aforesaid, and the Chargor shall indemnify the Lender in respect of all calls, instalments or other payments relating to any of the Charged Assets owned by it and to
any rights, shares and other securities accruing, offered or arising as aforesaid in respect of any of the Charged Assets. 

  

	13.	POWER OF ATTORNEY 

  

	13.1	Appointment 

 The Chargor by way of security
irrevocably appoints the Lender and every Delegate severally as its attorney (with full power of substitution), on its behalf and in its name or otherwise, at such time and in such manner as the attorney thinks fit: 
  

	(a)	to do anything which the Chargor is obliged to do (but has not done) under any Finance Document to which it is party (including to execute charges over, transfers, conveyances,
assignments and assurances of, and other instruments, notices, orders and directions relating to, the Charged Assets); and 

  

	(b)	to exercise any of the rights conferred on the Lender or any Delegate in relation to the Charged Assets or under any Finance Document, the CPO, the Companies Ordinance or generally
under Hong Kong law. 

  

	13.2	Ratification 

 The Chargor ratifies and confirms and
agrees to ratify and confirm whatever any such attorney shall do in the exercise or purported exercise of the power of attorney granted by it in Clause 13.1 (Appointment). 
  

	14.	PROTECTION OF THIRD PARTIES 

  

	14.1	No duty to enquire 

 No person dealing with the
Lender or any Delegate shall be concerned to enquire: 
  

	 	(a)	whether the power or rights conferred by or pursuant to any Finance Document are exercisable; 

  

 17 

	 	(b)	whether any consents, regulations, restrictions or directions relating to such rights have been obtained or complied with; 

  

	 	(c)	otherwise as to the propriety or regularity of acts purporting or intended to be in exercise of any such rights; or 

  

	 	(d)	as to the application of any money borrowed or raised. 

  

	14.2	Protection to purchasers 

 To the extent that such
provisions in the CPO are applicable to the Charged Assets and subject to the provisions of this Deed, all the protection to purchasers contained in Sections 52 (Protection of purchaser), 53 (Sale by mortgagee) and 55
(Mortgagee’s receipt) of the CPO or in any other applicable legislation shall apply to any person purchasing from or dealing with the Lender or any Delegate. 
  

	15.	SAVING PROVISIONS 

  

	15.1	Continuing Security 

 Subject to Clause 16
(Discharge of Security), the Charges are continuing Security and will extend to the ultimate balance of the Liabilities, regardless of any intermediate payment or discharge in whole or in part. 
  

	15.2	Reinstatement 

 If any payment by the Chargor or any
discharge given by the Lender (whether in respect of the obligations of any person or any security for those obligations or otherwise) is avoided or reduced as a result of insolvency or any similar event: 
  

	 	(a)	the liability of the Chargor and the Charges shall continue as if the payment, discharge, avoidance or reduction had not occurred; and 

  

	 	(b)	the Lender shall be entitled to recover the value or amount of that security or payment from the Chargor, as if the payment, discharge, avoidance or reduction had not occurred.

  

	15.3	Waiver of defences 

 Neither the obligations of the
Chargor under this Deed nor the Charges will be affected by an act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under any Finance Document or any of the Charges (without limitation
and whether or not known to it or the Lender including: 
  

	 	(a)	any time, waiver or consent granted to, or composition with, the Chargor or any other person; 

  

	 	(b)	the release of the Chargor or any other person under the terms of any composition or arrangement with any creditor of the Chargor or any such person; 

  

	 	(c)	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce any rights against, or security over assets of, the Chargor
or any other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security; 

  

 18 

	 	(d)	any death, mental or other incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status or constitution of the Chargor or any
other person; 

  

	 	(e)	any amendment (however fundamental) or replacement of a Finance Document or any other document or security; 

  

	 	(f)	any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; 

  

	 	(g)	any insolvency, bankruptcy, liquidation, winding-up or similar proceedings; or 

  

	 	(h)	any other Security, guarantee or indemnity now or thereafter held by the Lender or any other person in respect of the Liabilities or any other liabilities. 

 

	15.4	Immediate recourse 

 The Chargor waives any right it
may have of first requiring the Lender (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from the Chargor under this Deed. This waiver applies
irrespective of any law or any provision of a Finance Document to the contrary. 
  

	15.5	Appropriations 

 Until all the Liabilities have been
irrevocably paid in full and all facilities which might give rise to Liabilities have terminated, the Lender (or any trustee or agent on its behalf) may: 
  

	 	(a)	refrain from applying or enforcing any other moneys, security or rights held or received by the Lender (or any trustee or agent on its behalf) in respect of those amounts, or apply
and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and the Chargor shall not be entitled to the benefit of the same; and 

  

	 	(b)	hold in an interest-bearing suspense account any moneys received from the Chargor or on account of the Chargor’s liability under this Deed. 

  

	15.6	Deferral of Chargor’s rights 

 Until all the
Liabilities have been irrevocably paid in full and all facilities which might give rise to Liabilities have terminated and unless the Lender otherwise directs, the Chargor will not exercise any rights which it may have by reason of performance by it
of its obligations under the Finance Documents: 
  

	 	(a)	to be indemnified by any person; 

  

	 	(b)	to claim any contribution from any other provider of Security for or any other guarantor of any person’s obligations under the Finance Documents; and/or

  

	 	(c)	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Lender under the Finance Documents or of any guarantee or other
security taken pursuant to, or in connection with, the Finance Documents by the Lender. 

  

	15.7	Additional Security 

 The Charges are in addition to
and are not in any way prejudiced by any other guarantees or security now or subsequently held by the Lender. 
  

 19 

	15.8	Tacking 

 The Lender shall comply with its
obligations under the Finance Documents (including any obligation to make further advances). 
  

	16.	DISCHARGE OF SECURITY 

  

	16.1	Partial Release 

 Subject to Clauses 3.1
(Security), 3.2 (Disposal), 16.3 (Retention of Security) and all the other terms of the Finance Documents, the Lender may, at the request and cost of the Chargor release, reassign or discharge (as appropriate) from the Charges
those Charged Assets which are permitted to be released, reassigned or discharged under Clause 5 (Mark-to-Market Arrangements). 
  

	16.2	Final redemption 

  

	 	(a)	Subject to Clause 16.3 (Retention of security), if the Lender is satisfied that all the Liabilities have been irrevocably paid in full and that all facilities which might
give rise to Liabilities have terminated, the Lender shall at the request and cost of the Chargor release, reassign or discharge (as appropriate) the Charged Assets from the Charges. 

  

	 	(b)	For those Charged Assets which have been transferred and registered under the name of the Lender or its nominee, the Lender shall only be obliged to return the Securities
Certificate or rights in respect of any Clearing System then representing the Charged Assets not yet disposed of or realised by the Lender pursuant to its powers under this Deed (but not the original Securities Certificates originally delivered to
the Lender by the Chargor) with the instruments of transfer duly executed in favour of the Chargor or such other person as the Chargor may direct. 

  

	16.3	Retention of security 

 If the Lender considers that
any amount paid or credited to it under any Finance Document is capable of being avoided or otherwise set aside on the Winding-up of the Chargor or any other person, or otherwise, that amount shall not be considered to have been paid for the
purposes of determining whether all the Liabilities have been irrevocably paid. 
  

	16.4	Consolidation 

 Any restrictions on the
consolidation of Security shall be excluded to the fullest extent permitted by law and the Lender shall, so far as it is lawful and subject to other provisions of this Deed, be entitled to consolidate all or any of the Charges with any other
Security whether in existence on the date of this Deed or in the future. 
  

	17.	EXPENSES, STAMP DUTY AND INTEREST 

  

	17.1	Transaction expenses 

 The Chargor shall promptly on
demand pay the Lender the amount of all costs, losses, liabilities and expenses (including legal fees) incurred by it in connection with the negotiation, preparation, printing and execution of: 
  

	 	(a)	this Deed and any other documents referred to in this Deed; and 

  

	 	(b)	any other Finance Documents. 

  

 20 

	17.2	Amendment costs 

 If the Chargor requests an
amendment, waiver or consent the Chargor shall, within three Business Days of demand, reimburse the Lender for the amount of all costs, losses, liabilities and expenses (including legal fees) incurred by the Lender in responding to, evaluating,
negotiating or complying with that request. 
  

	17.3	Enforcement costs 

 The Chargor shall, within three
Business Days of demand, pay to the Lender the amount of all costs, losses, liabilities and expenses (including legal fees) incurred by the Lender or any Delegate in relation to any Finance Document (including the administration, protection,
realisation, enforcement or preservation of any rights under or in connection with any Finance Document, or any consideration by the Lender as to whether to realise or enforce the same, and/or any amendment, waiver, consent or release). 

 

	17.4	Stamp taxes 

 The Chargor shall pay and, within
three Business Days of demand, indemnify the Lender against any cost, loss or liability the Lender incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document and any of the transactions
contemplated under the Finance Documents. 
  

	17.5	Default interest 

 If the Chargor fails to pay any
amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate set out in the Facility Letter. 
  

	18.	PAYMENTS 

  

	18.1	Demands 

 Any demand for payment made by the Lender
shall be valid and effective even if it contains no statement of the relevant Liabilities or an inaccurate or incomplete statement of them. 
  

	18.2	Payments 

 All payments by the Chargor under this
Deed (including damages for its breach) shall be made in the currency under which the Loan is denominated and to such account, with such financial institution and in such other manner as the Lender may direct. 
  

	18.3	Continuation of accounts 

 At any time after:

  

	 	(a)	the receipt by the Lender of notice (either actual or otherwise) of any subsequent Security affecting the Charged Assets; or 

  

	 	(b)	any step is taken in relation to the Winding-up of the Chargor, 

 the Lender may open a new account in the name of the Chargor with the Lender (whether or not it permits any existing account to continue). If the Lender does not open such a new account, it shall nevertheless be treated as if it had done so
when the relevant event occurred. No moneys paid into any account, whether new or continuing, after that event shall discharge or reduce the amount recoverable pursuant to any Finance Document to which the Chargor is party. 
  

 21 

	18.4	Subrogation 

 So long as any Charge remains
outstanding: 
  

	 	(a)	any rights of the Chargor, by reason of the performance of any of its obligations under this Deed, the enforcement of any of the Charges or any action taken pursuant to any rights
conferred by or in connection with this Deed, to be indemnified by any person, to prove in respect of any liability in the Winding-up of any person or to take the benefit of or enforce any Security, guarantees or indemnities, shall be exercised and
enforced only in such manner and on such terms, as the Lender may require; and 

  

	 	(b)	any amount received or recovered by the Chargor (i) as a result of any exercise of any such rights or (ii) in the Winding-up of any person shall be held in trust for and
immediately paid to the Lender. 

  

	19.	TAX GROSS UP AND INDEMNITIES 

  

	19.1	Definitions 

  

	 	(a)	In this Clause 19: 

 “Tax Credit” means a
credit against, relief or remission for, or repayment of any Tax. 
 “Tax Deduction” means a deduction or withholding for or
on account of Tax from a payment under a Finance Document. 
 “Tax Payment” means an increased payment made by the Chargor to
the Lender under Clause 19.2 (Tax gross-up) or a payment under Clause 19.3 (Tax indemnity). 
  

	 	(b)	In this Clause 19 a reference to “determines” or “determined” means a determination made in the absolute discretion of the person making the determination.

  

	19.2	Tax gross-up 

  

	 	(a)	The Chargor shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law. 

  

	 	(b)	The Chargor shall promptly upon becoming aware that it must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Lender
accordingly. 

  

	 	(c)	If the Tax Deduction is required by law to be made by the Chargor, the amount of the payment due from the Chargor shall be increased to an amount which (after making any Tax
Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required. 

  

	 	(d)	If the Chargor is required to make a Tax Deduction, the Chargor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed
and in the minimum amount required by law. 

  

	 	(e)	Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Chargor shall deliver to the Lender evidence reasonably
satisfactory to the Lender that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority. 

  

 22 

	19.3	Tax indemnity 

  

	 	(a)	The Chargor shall (within three Business Days of demand by the Lender) pay to the Lender and any Delegate an amount equal to the loss, liability or cost which it has (directly or
indirectly) suffered for or on account of Tax by it (other than any Tax that is chargeable on the profits of the Lender). 

  

	 	(b)	Paragraph (a) above shall not apply with respect to any Tax assessed on the Lender (other than any Tax that is chargeable on the profits of the Lender):

  

	 	(i)	under the law of the jurisdiction in which the Lender is incorporated or, if different, the jurisdiction (or jurisdictions) in which the Lender is treated as resident for tax
purposes; or 

  

	 	(ii)	under the law of the jurisdiction in which the Lender’s office through which it is acting in connection with this Deed is located in respect of amounts received or receivable
in that jurisdiction, if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by the Lender. 

  

	19.4	Tax Credit 

 If the Chargor makes a Tax Payment and
the Lender determines that: 
  

	 	(a)	a Tax Credit is attributable to that Tax Payment; and 

  

	 	(b)	the Lender has obtained, utilised and retained that Tax Credit, 

 the Lender shall pay an amount to the Chargor which the Lender determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been made by the Chargor. 
  

	20.	CONDUCT OF BUSINESS BY THE LENDER 

 No provision of
this Deed will: 
  

	 	(a)	interfere with the right of the Lender to arrange its affairs (tax or otherwise) in whatever manner it thinks fit; 

  

	 	(b)	oblige the Lender to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or 

  

	 	(c)	oblige the Lender to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax. 

  

	21.	OTHER INDEMNITIES 

  

	21.1	Currency indemnity 

  

	 	(a)	If any sum due from the Chargor under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has to be converted from
the currency (the “First Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of: 

  

	 	(i)	making or filing a claim or proof against the Chargor; 

  

 23 

	 	(ii)	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings, 

 the Chargor shall as an independent obligation, within three Business Days of demand, indemnify the Lender against any cost, loss or liability arising out
of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to the Lender at the
time of its receipt of that Sum. 
  

	 	(b)	The Chargor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to
be payable. 

  

	21.2	Other indemnities 

  

	 	(a)	The Chargor shall indemnify the Lender and any Delegate against all losses, liabilities, damages, costs and expenses incurred by it or them in the execution or performance of the
terms and conditions of this Deed and against all actions, proceedings, claims, demands, costs, charges and expenses which may be incurred, sustained or arise in respect of the non-performance or non-observance of any of the undertakings and
agreements of the Chargor in this Deed or in respect of any matter or thing done or omitted relating in any way whatsoever to the Charged Assets, including without limitation, losses, liabilities, damages, costs and expenses (on a full indemnity
basis) suffered or incurred in connection with: 

  

	 	(i)	the perfection, preservation, protection, enforcement, realisation or exercise, or attempted perfection, preservation, protection, enforcement, realisation or exercise, of any
Security created, or any powers conferred, by this Deed or by law; 

  

	 	(ii)	the exchange of any Securities Certificate(s) or other documents of title in respect of the Charged Assets of any denomination(s) for any Securities Certificate(s) or other
documents of title of other denomination(s); 

  

	 	(iii)	the deposit of any Charged Assets with a Clearing System; 

  

	 	(iv)	custody of the Charged Assets in the name of the Lender or its nominee in a Clearing System, withdrawal of any Charged Assets by the Lender or its nominee out of a Clearing System,
or clearing or settlement of any Charged Assets by the Lender or its nominee in a Clearing System, including without limitation, all fees, charges, expenses and disbursements payable by the Lender and/or its nominee in connection with the Charged
Assets under the general rules of that Clearing System, and any liability of the Lender or its nominee to a Clearing System in connection with the Charged Assets; and/or 

  

	 	(v)	any Charged Assets being deemed not to be freely transferable or deliverable or to be defective, 

 and, for the avoidance of doubt, each of the indemnities in this paragraph shall survive for a period of 24 months after the date of discharge of the
Liabilities. 
  

 24 

	 	(b)	The Lender may retain, out of any money in the Lender’s hands, all sums necessary to effect the indemnities contained in this Clause and all sums payable by the Chargor under
this Clause shall form part of the monies secured by this Deed. 

  

	21.3	Indemnities separate 

 Each indemnity in each
Finance Document shall: 
  

	 	(a)	constitute a separate and independent obligation from the other obligations in that or any other Finance Document; 

  

	 	(b)	give rise to a separate and independent cause of action; 

  

	 	(c)	apply irrespective of any indulgence granted by the Lender; 

  

	 	(d)	continue in full force and effect despite any judgment, order, claim or proof for a liquidated amount in respect of any Liability or any other judgment or order; and

  

	 	(e)	apply whether or not any claim under it relates to any matter disclosed by the Chargor or otherwise known to the Lender. 

  

	22.	SET-OFF 

 The Lender may set off any matured
obligation due from the Chargor under the Finance Documents (to the extent beneficially owned by the Lender) against any matured obligation owed by the Lender to the Chargor, regardless of the place of payment, booking branch or currency of either
obligation. If the obligations are in different currencies, the Lender may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. 
  

	23.	RIGHTS, AMENDMENTS, WAIVERS AND DETERMINATIONS 

  

	23.1	Ambiguity 

 Where there is any ambiguity or conflict
between the rights conferred by law and those conferred by or pursuant to any Finance Document, the terms of that Finance Document shall prevail. 
  

	23.2	Remedies and waivers 

 No failure to exercise, nor
any delay in exercising, on the part of the Lender or Delegate any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the
exercise of any other right or remedy. The rights and remedies provided in the Finance Documents are cumulative and not exclusive of any rights or remedies provided by law. 
  

	23.3	Amendments and waivers 

 Any term of this Deed may
be amended or waived only with the consent of the Lender and the Chargor. 
  

	23.4	Determinations 

 Any determination by or certificate
of the Lender or any Delegate under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates. 
  

 25 

	24.	PARTIAL INVALIDITY 

 If, at any time, any provision
of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of
such provision under the law of any other jurisdiction will in any way be affected or impaired. 
  

	25.	NOTICES 

  

	25.1	Communications in writing 

 Any communication to be
made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter. 
  

	25.2	Addresses 

 The address and fax number (and the
department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is that identified with its name below, or
any substitute address, fax number or department or officer as the Party may notify to the other by not less than five Business Days’ notice. 
  

			
	To the Lender:	  	 Bank of China (Hong Kong) Limited
 17/F Bank of China
Centre
 Olympian City
 11 Hoi Fai Road, West Kowloon

Hong Kong
 Facsimile number: (852) 2526 7478
 Attention: Loans Division (Project Section)

		
	To the Chargor:	  	 TOM ONLINE INC.
 48th Floor, The Center
 99 Queen’s Road Central
 Hong Kong
 Facsimile number: (852) 2189 7446
 Attention: Company
Secretary

  

	25.3	Delivery 

  

	 	(a)	Any communication or document made or delivered to the Chargor under or in connection with the Finance Documents will only be effective: 

  

	 	(i)	if by way of fax, when received in legible form, subject to confirmation of uninterrupted transmission by a transmission report PROVIDED THAT any notice despatched by facsimile
after 17:00 hours (at the place where facsimile is to be received on any day) shall be deemed to have been received at 08:00 (at the place where facsimile is to be received on any day) on the next Business Day; or 

  

	 	(ii)	if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that
address; 

  

 26 

 and, if a particular department or officer is specified as part of its address details provided under
Clause 25.2 (Addresses), if addressed to that department or officer. 
  

	 	(b)	Any communication or document to be made or delivered to the Lender will be effective only when actually received by the Lender and then only if it is expressly marked for the
attention of the department or officer identified with the Lender’s signature below (or any substitute department or officer as the Lender shall specify for this purpose). 

  

	26.	COUNTERPARTS 

 This Deed may be executed in any
number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Deed. 
  

	27.	ASSIGNMENT AND PARTICIPATION 

  

	 	(a)	This Deed shall be binding upon and enure to the benefit of each Party and its successors and permitted assigns, except that the Chargor may not assign or transfer any of its rights
or benefits or obligations hereunder. 

  

	 	(b)	The Lender may, with the prior written consent by the Chargor, at any time assign or transfer all or any part of its rights or benefits and obligations hereunder to any companies or
financial institutions within Bank of China Group or to any other companies. 

  

	 	(c)	If the Chargor is so requested by the Lender, the Chargor shall at the costs of the Lender execute a novation agreement with the Lender and its assignee under which the Lender is
released from its obligations hereunder, or the part thereof corresponding to the rights so assigned, and the assignee assumes such obligations, or the relevant part thereof. 

  

	 	(d)	The Lender shall not disclose to any person (other than assignee or potential assignee with whom the Lender has entered into or may propose to enter into contractual relations in
relation to this Deed provided that the Lender shall use its best endeavours to obtain appropriate confidentiality undertakings to be given by such recipient) such information about the Chargor and its affairs. 

  

	 	(e)	Any representation, warranty, undertaking and arrangement on the part of the Chargor shall survive the making of any assignment by the Lender hereunder, the change in the name of
the Lender or its amalgamation with, or absorption by any other corporation. 

  

	28.	GOVERNING LAW 

 This Deed is governed by Hong Kong
law. 
  

	29.	JURISDICTION 

  

	 	(a)	The courts of Hong Kong have non-exclusive jurisdiction to settle any dispute arising out of or in connection with the Finance Documents (including a dispute regarding the
existence, validity or termination any Finance Document) (a “Dispute”). 

  

	 	(b)	The Parties agree that the courts of Hong Kong are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

  

 27 

 SCHEDULE 1 
 RIGHTS OF LENDER 
 Upon the occurrence of an Enforcement Event, the
Lender shall have the right, either in its own name or in the name of the Chargor or otherwise and in such manner and upon such terms and conditions as the Lender thinks fit, and either alone or jointly with any other person: 
  

	(a)	Take possession 

 to take possession of the Charged
Assets, and to require payment to it of all Interest including without limitation, to complete any transfer form and to procure the transfer of the Charged Assets into the name of the Lender or its nominee and, if necessary, take possession of and
collect the Securities Certificates and/or other documents of title relating to the Charged Assets and/or cause physical documents of title to be withdrawn from any Clearing System and/or cause the Charged Assets to be deposited into any relevant
Clearing System, in each case, at the cost and risk of the Chargor; 
  

	(b)	Deal with Charged Assets 

 to sell, transfer,
assign, exchange or otherwise dispose of or realise the Charged Assets to any person either by public offer or auction, tender or private contract and for a consideration of any kind (which may be payable or delivered in one amount or by instalments
spread over a period or deferred); 
  

	(c)	Borrow money 

 to borrow or raise money either
unsecured or on the security of the Charged Assets (either in priority to the Charges or otherwise); 
  

	(d)	Rights of ownership 

 to exercise and do (or permit
the Chargor or any nominee of it to exercise and do) all such rights and things as the Lender would be capable of exercising or doing if it were the absolute beneficial owner of the Charged Assets; 
  

	(e)	Claims 

 to settle, adjust, refer to arbitration,
compromise and arrange any claims, accounts, disputes, questions and demands with or by any person relating to the Charged Assets; 
  

	(f)	Legal actions 

 to bring, prosecute, enforce, defend
and abandon actions, suits and proceedings in relation to the Charged Assets; 
  

	(g)	Redemption of Security 

 to redeem any Security
(whether or not having priority to the Charges) over the Charged Assets and to settle the accounts of any person with an interest in the Charged Assets; 
  

 28 

	(h)	Spend money 

 in the exercise of any of the above
powers, to spend such sums as he may think fit and the Chargor shall forthwith on demand repay to the Lender or the Receiver (as the case may be) all sums so spent together with interest on those sums at such rates as the Lender may from time to
time determine from the time they are paid or incurred and until repayment those sums (together with such interest) shall be secured by the Charges; and 
  

	(i)	Other powers 

 to do anything else it may think fit
for the realisation of the Charged Assets or incidental to the exercise of any of the rights conferred on the Lender under or by virtue of any Finance Document to which the Chargor is party, the CPO (only to the extent that the relevant provisions
in the CPO are applicable to the Charged Assets), the Companies Ordinance and other applicable statutory provisions and common law. 
  

 29 

 SCHEDULE 2 
 SECURITIES 
  

												
	 Identifiers (ISIN)
	  	 Issuers
	  	Credit
Ratings	  	Maturity	  	Coupon	 	 	Notional
Amount
	 DE0008026071
	  	Depfa ACS Bank	  	AAA	  	29-Oct-08	  	3.625	%	 	10,000,000
						
	 US298785CZ73
	  	European Investment Bank Luxembourg	  	AAA	  	16-Mar-09	  	3.375	%	 	10,000,000
						
	 US458182CE02
	  	I.A.D.B.	  	AAA	  	18-Nov-08	  	5.375	%	 	10,000,000
						
	 US500769AQ75
	  	Kredit Fuer Wiederaufbau	  	AAA	  	30-Mar-09	  	3.250	%	 	10,000,000
						
	 US135087WS93
	  	Government of Canada	  	AAA	  	05-Nov-08	  	5.250	%	 	10,000,000
						
	 US4581X0AE89
	  	I.A.D.B.	  	AAA	  	17-Mar-08	  	3.375	%	 	10,000,000
						
		  	 Total
	  		  		  			 	60,000,000

  

 30 

 SCHEDULE 3 
 CCASS DEFINITIONS 
  

	1.	Interpretation 

 Expressions used in this Schedule
3, unless the context otherwise requires, shall have the meanings ascribed to them in the General Rules of CCASS including, where the context permits, the Operational Procedures (as defined therein), as from time to time in force (“General
Rules of CCASS”). For reference purposes, the following terms have, as at the date hereof, the following meanings under the General Rules of CCASS: 
 “Broker Participant” means a Participant admitted to participate in CCASS as a Broker Participant. 
 “CCASS” means the Central Clearing and Settlement System established and operated by the HKSCC. 
 “Clearing
Agency Participant” means a Participant admitted to participate in CCASS as a Clearing Agency Participant. 
 “Clearing
Agency Transaction” means a transaction, other than a SI Transaction, between a Participant other than an Investor Participant and a Clearing Agency Participant for settlement in CCASS as referred to in Rule 902. 
 “Collateral Security” means an Eligible Security which is from time to time held by or deposited with HKSCC by a Broker Participant for
credit into the General Stock Collateral Account of such Participant, in accordance with Rule 3608. 
 “Debt Securities”
means an issue of debenture or loan stock, debentures, bonds and notes and other securities or instruments, either interest bearing or non-interest bearing, acknowledging, evidencing or creating indebtedness whether secured or unsecured, options,
warrants or similar rights to subscribe or purchase any other foregoing and convertible debt securities. 
 “Delivery
Instruction” means an instruction of a Participant in such form as HKSCC may from time to time prescribe as being valid to effect book-entry delivery of Eligible Securities in CCASS to another Participant in respect of transactions in
Eligible Securities accepted for settlement in CCASS, as referred to in Rule 1003. 
 “Eligible Security” means an issue of
securities including Debt Securities which is from time to time accepted as eligible by HKSCC for deposit, clearance and settlement in CCASS in accordance with Rule 501, and where the context so requires, shall include any particular security or
securities of such an issue. 
 “Exchange” means The Stock Exchange of Hong Kong Limited. 
 “Exchange Trade” means a trade in an Eligible Security between two Broker Participants effected on or reported to the Exchange.

 “General Stock Collateral Account” means, in relation to each Broker Participant, the Stock Account in CCASS of such
Participant to which are credited the Collateral Securities of such Participant, as referred to in Rule 601). 
  

 31 

 “HKSCC” means the Hong Kong Securities Clearing Company Limited including, where the
context so requires, its agents, nominees, representatives, officers and employees. 
 “Investor Participant” means a person
admitted to participate in CCASS as an Investor Participant who may be an individual or joint individuals or a corporation. 
 “Participant” means a person admitted for the time being by HKSCC as a participant in CCASS. 
 “Settlement
Instruction” or “SI” means an instruction of a Participant, in such form as HKSCC may from time to time prescribe as being valid, relating to transactions in Eligible Securities (other than Exchange Trades or Clearing
Agency Transactions) to be settled in CCASS, as referred to in Rule 904. 
 “SI Transaction” means a transaction to be
settled in CCASS between two Participants other than Investor Participants as a result of the input of a Settlement Instruction, authorised, if required, by each Participant (such Settlement Instructions being matched in CCASS). 
 “Stock Account” means, in relation to each Broker Participant, each Stock Clearing Account, Stock Segregated Account and General Stock
Collateral Account; in relation to each Investor Participant, each Stock Clearing Account; and, in relation to each Participant other than a Broker Participant and an Investor Participant, each Stock Clearing Account and Stock Segregated Account,
allocated to and operated by it in which Eligible Securities of such Participant are credited or debited, as referred to in Rule 601. 
 “Stock Clearing Account” means, in relation to each Participant, the main Stock Account in CCASS of such Participant used for settlement purposes, as referred to in Rule 601. 
 “Stock Segregated Accounts” means, in relation to each Broker Participant, the Stock Accounts in CCASS of such Participant other than its
Stock Clearing Account and General Stock Collateral Account and in relation to each Participant other than a Broker Participant and an Investor Participant, the Stock Accounts in CCASS of such Participant other than its Stock Clearing Account, as
referred to in Rule 601. 
  

	2.	Reversal/reduction of CCASS credits 

 If at any time
by reason of the exercise of any of the rights of HKSCC, whether under Rule 602 of the General Rules of CCASS or otherwise, any credit entries in the Stock Account of the Lender or its nominee which relate or which, in the reasonable opinion of the
Lender, relate to the Charged Assets are reduced or reversed in whole or in part, the Chargor shall forthwith upon notification by the Lender or its nominee, cause to be delivered to the Stock Account of the Lender or, as appropriate, its nominee
replacement Charged Assets which will result in the relevant credit entries being restored to the level immediately preceding the reduction or reversal. 
  

 32 

 SCHEDULE 4 
 FORM OF RELEASE REQUEST 
  

	To:	Bank of China (Hong Kong) Limited 

 Attention:
[                    ] 
 TOM ONLINE INC. - Charge over Securities 
 dated
[                    ] April 2005 (the “Charge”) 
  

	1.	We refer to the Charge. This is a Release Request. Terms defined in the Charge shall have the same meaning in this Release Request. 

  

	2.	Pursuant to Clause 5.3 (Permitted releases) of the Charge, we may request the release of specified Charged Assets from the Charges provided that the terms set out in
paragraph (b) of Clause 5.3 (Permitted releases) of the Charge and paragraphs 3 and 4 below are satisfied. 

  

	3.	Upon the replacement of the Charged Assets specify in this Release Request by other Eligible Securities, the aggregate principal amount of the outstanding Loan will not exceed 95%
of the Security Value of the Charged Assets. 

  

	4.	In accordance with Clause 5.3 (Permitted releases), we attach with this Release Request, a certificate signed by [name of director] confirming that no
Enforcement Event has occurred and is continuing on the date of this Release Request or will occur as a result of this Release Request. 

  

	5.	Accordingly, we hereby request the release of the following Charged Assets from the Charges: 

  

	 	•	 	Type of Charged Assets to be released:
[                    ] 

  

	 	•	 	Amount of Charged Assets to be released:
[                    ] 

  

	6.	The Charged Assets listed under paragraph 5 above shall be delivered to us/our nominee in accordance with the details set out below: 

 Name: 
 Address: 
  

	
	Yours faithfully
	
	  
 authorised signatory for

	TOM ONLINE INC.

  

 33 

 In witness whereof this Deed has been executed as a deed on the date stated at the
beginning. 
  

			
	THE COMMON SEAL of	  	)
		
	TOM ONLINE INC.	  	)
		
	was affixed in the presence of:	  	)
		
	Signature verified by the Lender:	  	
		
	SIGNED by	  	)
		
	for and on behalf of BANK OF CHINA	  	)
		
	(HONG KONG) LIMITED	  	)

  

 34Shareholders' Deed, dated August 22, 2005

 Exhibit 4.45 
 DATED 22 AUGUST 2005 
 (1) TOM ONLINE (BVI) LIMITED 
 (2) TOM ONLINE INC. 
 (3) SKYPE
COMMUNICATIONS, S.A. 
 (4) SKYPE TECHNOLOGIES, S.A. 
 (5) TEL-ONLINE LIMITED 
  

 SHAREHOLDERS’ DEED 
 relating to 
 Tel-Online Limited 
  

 CONTENTS 
  

					
	 1.
	  	DEFINITIONS AND INTERPRETATION	  	2
			
	 2.
	  	ACTIVITIES OF THE COMPANY	  	7
			
	 3.
	  	FINANCE	  	7
			
	 4.
	  	MANAGEMENT OF THE COMPANY	  	7
			
	 5.
	  	SHAREHOLDERS’ MEETING	  	9
			
	 6.
	  	MATTERS REQUIRING SUPER-MAJORITY CONSENT	  	10
			
	 7.
	  	FURTHER OBLIGATIONS OF THE PARTIES	  	13
			
	 8.
	  	WARRANTIES	  	15
			
	 9.
	  	DIVIDEND POLICY	  	16
			
	 10.
	  	TRANSFERS OF SHARES	  	16
			
	 11.
	  	DURATION	  	17
			
	 12.
	  	TERMINATION	  	17
			
	 13.
	  	EFFECT OF WINDING UP OF THE COMPANY; TERMINATION OF THIS DEED	  	19
			
	 14.
	  	CONFIDENTIALITY	  	20
			
	 15.
	  	ENFORCEMENT OF THE COMPANY’S RIGHTS	  	20
			
	 16.
	  	CONSOLIDATION OF ACCOUNTS	  	21
			
	 17.
	  	FURTHER ASSURANCE	  	21
			
	 18.
	  	RESTRICTIONS ON ANNOUNCEMENTS	  	21
			
	 19.
	  	NO PARTNERSHIP	  	21
			
	 20.
	  	CONFLICT WITH ARTICLES	  	21
			
	 21.
	  	RIGHTS TO INJUNCTIVE RELIEF	  	21
			
	 22.
	  	COSTS	  	22
			
	 23.
	  	ASSIGNMENT	  	22
			
	 24.
	  	ENTIRE AGREEMENT	  	22
			
	 25.
	  	VARIATION	  	22
			
	 26.
	  	NOTICES	  	22
			
	 27.
	  	WAIVER	  	24

					
	 28.
	  	SEVERABILITY	  	24
			
	29.	  	ACKNOWLEDGEMENT BY COMPANY	  	24
			
	30.	  	COUNTERPARTS	  	24
			
	31.	  	GOVERNING LAW AND JURISDICTION	  	24
		
	SCHEDULE 1: DEED OF ADHERENCE	  	26

 THIS DEED is made on the 22nd day of August 2005 
 BETWEEN:

  

	(1)	TOM ONLINE (BVI) LIMITED (“Online BVI”), a company incorporated in the British Virgin Islands with limited liability and whose correspondence address is at
8th Floor, Tower W3, Oriental Plaza No.1, Dong Changan Avenue, Dong Chang District, Beijing 1000738, the
People’s Republic of China; 

  

	(2)	TOM ONLINE INC. (“Tom Holding”), a company incorporated in the Cayman Islands with limited liability and listed on the NASDAQ National Market in the United
States of America and the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited and whose correspondence address is at 8th Floor, Tower W3, Oriental Plaza No.1, Dong Changan Avenue, Dong Chang District, Beijing 1000738, the People’s Republic of China; 

  

	(3)	SKYPE COMMUNICATIONS, S.A. (“Skype”), a company incorporated in Luxembourg with limited liability and whose principal place of business is at 6 rue Adophe
Fischer, L-1520 Luxembourg; 

  

	(4)	SKYPE TECHNOLOGIES, S.A. (“Skype Holding”), a company incorporated in Luxembourg with limited liability and whose principal place of business is at 6 rue
Adophe Fischer, L-1520 Luxembourg; and 

  

	(5)	TEL-ONLINE LIMITED (“Company”), a company incorporated in the Cayman Islands with limited liability and whose correspondence address is at 8th Floor, Tower W3, Oriental Plaza No.1, Dong Changan Avenue, Dong Chang District, Beijing 1000738, the People’s Republic of
China; 

 WHEREAS: 
  

	(A)	On 12 October 2004, Online BVI, Tom Holding, Skype and Skype Holding entered into a memorandum of terms (“Memorandum”) under which they have agreed to set up
the Company for the purpose of, inter alia, marketing and distributing the Company-Skype Branded Application (as hereinafter defined) and developing and maintaining the Company-Skype Branded Web Site. 

  

	(B)	The Company is a private company limited by shares and incorporated in the Cayman Islands on 1 June 2005. Its registered office is at PO Box 309GT, Ugland House, South
Church Street, George Town, Grand Cayman, Cayman Islands and its registered number is 149729. As at the date of this Deed, it has an authorised share capital of US$50,000.00 divided into 50,000 Shares (as hereinafter defined). 100 Shares have been
issued and allotted and are fully paid, of which 51 Shares, being 51 per cent. of the issued share capital of the Company, are beneficially owned by, and registered in the name of Online BVI, and 49 Shares, being 49 per cent. of the issued
share capital of the Company, are beneficially owned by, and registered in the name of Skype. 

  

	(C)	The Parties (as defined below) have agreed to enter into this Deed for the purposes of: 

  

	 	(1)	regulating their relationship with each other so long as they are shareholders of the Company; and 

  

 1 

	 	(2)	regulating, as between themselves, certain aspects of the affairs of the Company. 

  

	(D)	It is the intention of the Parties that this document should be executed as a deed. 

 NOW THIS DEED WITNESSES as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1.	In this Deed, unless the context requires otherwise: 

  

	 	(A)	terms and expressions defined in the Co-Branding Agreement have the same meanings when used in this Deed; and 

  

	 	(B)	the following words and expressions have the following meanings: 

  

			
	“Affiliate”	  	means in relation to any Shareholder, any subsidiary or holding company of such Shareholder, any subsidiary of such holding company, and any company in which such Shareholder or any such
holding company holds or controls directly or indirectly not less than 30 per cent. of the issued share capital and the expression “holding company” and “subsidiary” shall be as defined in section 736 of the
Companies Act;
		
	“Appraised Price”	  	of a Share or Shares or other property, as the case may be, means the highest cash price that an unrelated third party would be willing to pay to acquire such Share or Shares (computed on a
fully diluted basis, without discount or premium for control or minority status, after giving effect to the exercise of any and all outstanding conversion rights, exchange rights, warrants and options) or other property in an arm’s length
transaction, assuming that the Group were being sold in a manner reasonably designed to solicit all possible participants and permit all interested persons an opportunity to participate and to achieve the best value reasonably available at that
time, taking into account all existing circumstances, including, without limitation, the terms and conditions of all agreements (including this Deed and the termination of any agreements or rights that may as of such time have been terminated,
including, without limitation, the Co-Branding Agreement) to which the Company or any of its subsidiaries is then a party, and shall be determined as follows: within the thirty (30) days following the date upon which a Party provides notice to the
other Parties of an event requiring a determination of Appraised Price (“Notice Date”), Online BVI and Skype shall attempt to mutually agree on the Appraised Price.

  

 2 

			
		 	If Online BVI and Skype are unable to agree on the Appraised Price within such thirty (30)-day period, then, during the fifteen (15) days thereafter, Online BVI and Skype shall attempt to
mutually agree upon a single Investment Banking Firm to determine the Appraised Price PROVIDED THAT if at the expiration of the aforementioned fifteen (15)-day period Online BVI and Skype have not agreed upon the appointment of an Investment Banking
Firm, each of Online BVI and Skype shall designate an Investment Banking Firm to determine the Appraised Price. The Investment Banking Firm(s) may take into account projected future revenues from assets and other relevant factors in determining the
Appraised Price. Within thirty (30) days after appointment, such Investment Banking Firm or Firms as are appointed shall determine its or their respective view(s) as to the Appraised Price and, if more than one Investment Banking Firm is appointed,
consult with one another with respect thereto. Where more than one Investment Banking Firm is appointed: (a) if the difference between the higher of the respective views of the Appraised Price of the two Investment Banking Firms (“Higher
Appraised Price”) and the lower of the respective views of the Appraised Price of the two Investment Banking Firms (“Lower Appraised Price”) is less than 10 per cent of the Higher Appraised Price, the Appraised Price
determined shall be the average of the Higher Appraised Price and the Lower Appraised Price, or (b) if the difference between the Higher Appraised Price and the Lower Appraised Price is more than 10 per cent of the Higher Appraised Price, the two
appointed Investment Banking Firms shall jointly designate a third Investment Banking Firm (“Mutually Designated Appraiser”) to determine the final Appraised Price, and within 15 days of such designation, the Mutually Designated
Appraiser shall determine its view as to the Appraised Price (“Mutual Appraised Price”) and the final determination of the Appraised Price shall be the average of (i) the Mutual Appraised Price and (ii) the Higher Appraised Price or
the Lower Appraised Price, whichever is closer to the Mutual Appraised Price. In the event that the Higher Appraised Price is as close to the Mutual Appraised Price as the Lower Appraised Price, the final determination of the Appraised Price shall
be the Mutual Appraised Price. The Company shall provide reasonable access to each of the designated Investment Banking Firms to members of management of the Company and its subsidiaries and to the books and records of the Company and its
subsidiaries so as to allow such Investment Banking Firms to conduct due diligence examinations in scope and duration as are customary in valuations of this kind. Each of the Parties (on its own behalf and on behalf of its respective Affiliates)
agrees to cooperate with each of the Investment Banking Firms and to provide such information as may reasonably be requested in relation to the determination of the Appraised Price. Costs of the appraisals shall be borne equally by the Shareholders
in the event such appraisals are determined pursuant to Clauses 12.2 and 12.4. Costs of the appraisals shall be borne by the Defaulter in the event such appraisals are determined pursuant to Clauses 12.1;

  

 3 

			
	“Articles”	  	means the memorandum and the articles of association of the Company;
		
	“Board”	  	means the Company’s board of directors as constituted from time to time;
		
	“Business”	  	has the meaning given in Clause 2.1;
		
	“Business Day”	  	means a day (other than a Saturday or Sunday) on which banks are generally open for normal business in Hong Kong;
		
	“Company-Skype Branded Application”	  	means a customised version of the Skype Software to be used by the Company subject to the terms of, and as defined in, the Co-Branding Agreement;
		
	“Company-Skype Branded Web Site”	  	means a set of web pages containing, inter alia, the Company-Skype Branded Content to be developed, located and hosted pursuant to the terms of the Co-Branding Agreement;
		
	“Co-Branding Agreement”	  	means the agreement to be entered into by each of the Parties on or about the date of this Deed in the approved terms;
		
	“Companies Act”	  	means the Companies Act 1985 of the United Kingdom, as amended or supplemented from time to time;
		
	“Control”	  	means, in relation to a company, the power of a person directly or indirectly to secure:
		
		  	 (i)       by means of the holding of shares or the possession of voting (either at shareholder level or
Director level) in or in relation to that or any other company, or

  

 4 

			
		  	 (ii)      by virtue of any powers conferred by the articles of association or other document regulating that or
any other company,

		
		  	that the affairs of that company are conducted in accordance with the wishes of that person or that person holds or controls directly or indirectly not less than 30 per cent. of the issued share
capital of the Company, and “Controlled”, Controller” and cognate expressions shall be construed accordingly;
		
	“Deed of Adherence”	  	means a deed substantially in the form set out in Schedule 1;
		
	“Directors”	  	means directors of the Company from time to time;
		
	“Group”	  	means the Company and the subsidiaries of the Company;
		
	“Hong Kong”	  	means the Hong Kong Special Administrative Region of the PRC;
		
	“Investment Banking Firm”	  	shall mean an independent international investment banking firm with international repute;
		
	“Online Group”	  	means Tom Holding and its subsidiaries (other than the Group);
		
	“Parties”	  	means the parties to this Deed and “Party” means any one of them (including any other person to whom Shares are transferred or issued in accordance with this
Deed);
		
	“PRC” or “Territory”	  	means the People’s Republic of China (excluding Hong Kong, the Macau Special Administrative Region of the PRC and Taiwan);
		
	“Quarter”	  	means a quarter of a financial year of the Company;
		
	“Shareholders”	  	means Online BVI and Skype and “Shareholder” means Online BVI or Skype or either of them, as the context shall require;
		
	“Shares”	  	means the shares of US$1.00 each in the capital of the Company and “Share” means one share of US$1.00 each in the capital of the Company;
		
	“Skype Group”	  	means Skype Holding and its subsidiaries;
		
	“Skype Parties”	  	means Skype and Skype Holding and “Skype Party” means any one of them;

  

 5 

			
	“Territory”	  	means the PRC (for the purpose of this Deed, Hong Kong, the Macau Special Administrative Regions and Taiwan are excluded);
		
	“Tom Parties”	  	means Online BVI and Tom Holding and “Tom Party” means any one of them; and
		
	“Transaction Documents”	  	means this Deed, the Co-Branding Agreement and any other agreement or arrangement entered into by a Tom Party (or its Affiliate) and a Skype Party (or its Affiliate) in respect of the subject
matter of this Deed or the Co-Branding Agreement.

  

	1.2.	Any references, express or implied, to statutes or statutory provisions shall be construed as references to those statutes or provisions as respectively amended or re-enacted or as
their application is modified from time to time by other provisions (whether before or after the date hereof) and shall include any statutes or provisions of which they are re-enactments (whether with or without modification) and any orders,
regulations, instruments or other subordinate legislation under the relevant statute or statutory provision. References to sections of consolidating legislation shall wherever necessary or appropriate in the context be construed as including
references to the sections of the previous legislation from which the consolidating legislation has been prepared. 

  

	1.3.	References to any document (including this Deed) are references to that document as amended, consolidated, supplemented, novated or replaced from time to time.

  

	1.4.	References herein to Clauses and Schedules are to clauses in and the schedules to this Deed unless the context requires otherwise and the Schedules to this Deed shall be deemed to
form part of this Deed. 

  

	1.5.	References to any of the Parties shall, where the context permits, include successors or permitted assigns of that Party. 

  

	1.6.	“person” includes any individual, partnership, body corporate, corporation sole or aggregate, state or agency of a state, and any unincorporated association or
organisation, in each case whether or not having separate legal personality. 

  

	1.7.	“company” includes any body corporate. 

  

	1.8.	Headings and sub-headings are inserted for convenience only and shall not affect the construction of this Deed. 

  

	1.9.	Unless the context requires otherwise, words importing the singular include the plural and vice versa and words importing a gender include every gender. 

  

	1.10.	A document expressed to be “in the approved terms” means a document the terms of which have been approved by or on behalf of the Shareholders and a copy of which
has been signed for the purposes of identification by or on behalf of the Shareholders. 

  

	1.11.	All warranties, representations, indemnities, covenants, agreements, undertakings and obligations given or entered into by more than one person are given or entered into jointly and
severally. 

  

 6 

	1.12.	The expression the “Company” where used in this Deed shall be deemed to include each of the other companies in the Group (if any) from time to time to the intent
and effect that the applicable provisions shall apply in relation to each such company as they apply in relation to the Company, save for those provisions which expressly or by implication relate only to the Company. 

  

	2.	ACTIVITIES OF THE COMPANY 

  

	2.1.	Unless otherwise agreed, the Company shall (i) market and distribute the Company-Skype Branded Application; (ii) develop the Company-Skype Branded Web Site and
Company-Skype Branded Content, (iii) provide Payment Services with respect to SkypeOut, SkypeIn, and/or Skype Plus services provided on or through the Company-Skype Branded Application; (iv) provide value-added services through various
telecommunications networks; (v) act as agent in connection with the activities set out in this Clause 2.1; and (vi) conduct any other business activities determined by the Board, in each case solely in the Territory and in accordance with
the terms of the Co-Branding Agreement (“Business”). 

  

	2.2.	The Business shall be conducted in accordance with good and commercial business practice. 

  

	2.3.	Each of the Parties shall use its respective reasonable endeavours, without being required to incur any financial obligation (other than as expressly set out in this Deed) to
promote the interests of the Company, to ensure that the Company conducts the Business with maximum energy and efficiency and to facilitate the promotion of the Business and the interests of the Company; PROVIDED, however, THAT no Party shall be
deemed to be exercising less than its reasonable endeavours by reason of such Party’s competitive activities in the Territory, to the extent such Party is permitted to engage in such competitive activities under the Co-Branding Agreement.

  

	3.	FINANCE 

 Unless otherwise mutually agreed by
the Shareholders, any working capital or other funding required for the Company or its Business as determined by the Board from time to time shall be provided by Online BVI. 
  

	4.	MANAGEMENT OF THE COMPANY 

  

	4.1.	The Business of the Company shall be managed by the Board, which shall consist of five Directors. Unless otherwise unanimously agreed by the Shareholders, the maximum number of
Directors shall be five. 

  

					
	4.2.	  	(A)	  	Online BVI shall have the right to appoint and remove up to three Directors and Skype shall have the right to appoint and remove up to two Directors. At the date of this Deed, the Directors
nominated by Online BVI shall be Jay Chang, Elaine Feng and Joshua Maa and the Directors appointed by Skype shall be Niklas Zennstrom and Norbert Becker. The Shareholders shall as soon as practicable procure the appointment of the Directors
nominated by them pursuant to this Clause 4.2.
			
		  	(B)	  	Any person nominated as Director by a Shareholder shall be appointed, and may only be removed from such office by the Shareholder who nominated the Director by depositing a written notice signed
by a director or other duly authorised person on behalf of the Shareholder at the Company’s registered office and sending a copy to the Company’s correspondence address and a copy to the other Shareholder. Such notice shall take effect
from the time stated therein or, if no such time has been stated, from the time when such notice is lodged at the Company’s registered office.

  

 7 

	 	(C)	Any Shareholder removing a Director shall be responsible for and shall indemnify the other Shareholder and the Company against any claim by such Director of whatever nature arising
out of such removal. 

  

	4.3.	The chairman of the Board shall be appointed by Online BVI. If the chairman is not present at any Board meeting, the Directors present may appoint any one of the Directors nominated
by Online BVI present at such Board meeting to act as chairman for the purpose of the meeting; but if no such Director is present, the Directors present may appoint any Director present to act as chairman for the purpose of the meeting.

  

	4.4.	Subject to the provisions provided in this Deed, regulations relating to the proceedings of Directors are contained in the Articles. 

  

	4.5.	Each Director shall be entitled to appoint any person to be his alternate and each alternate shall have one vote for every Director whom he represents PROVIDED THAT if such
alternate is himself a Director then he shall have one vote for every Director whom he represents in addition to any vote of his own. 

  

	4.6.	On a Shareholder ceasing to have any beneficial interest in the share capital of the Company, any appointment of Directors nominated by such Shareholder shall automatically
terminate and the Shareholder shall procure that the Directors appointed by it will resign. 

  

					
	4.7.	  	(A)	  	The quorum for meetings of the Board shall be four Directors.
			
		  	(B)	  	A quorum must be present at the beginning of and throughout each meeting.
			
		  	(C)	  	If within 10 minutes of the time appointed for a meeting a quorum is not present, the meeting shall stand adjourned until the same time and place on the tenth day after the date of the original
meeting and if at such adjourned meeting a quorum is not present within 10 minutes from the time appointed for such adjourned meeting (or such longer interval as the chairman of the meeting may think fit to allow) any one or more Directors present
in person or by his alternate shall constitute a quorum.
			
	4.8.	  	(A)	  	The Board shall meet as required and any one Director may call a meeting of the Board (either directly or indirectly through the secretary of the Company). In addition to any meetings required
to be held by the Board under this Deed or by law, the Board shall meet at any other meeting duly called and noticed. in accordance with the provisions hereof.
			
		  	(B)	  	Not less than seven days’ notice of each meeting together with an agenda specifying the business to be transacted thereat shall be given by the relevant Director calling the meeting (either
directly or indirectly through the secretary of the Company) to each Director and his alternate, unless waived by each Shareholder or any Director nominated by it.
			
		  	(C)	  	Questions arising at any meeting of the Board (including any adjourned meeting) shall be decided by a simple majority vote cast by Directors present at the meeting in person or by
proxy.

  

 8 

	 	(D)	Directors may participate in a meeting of the Board by means of conference telephone or similar communications equipment whereby all persons participating in the meeting can hear
each other and such participation shall constitute presence in person. 

  

	 	(E)	Resolutions of the Board may be passed by written resolution signed by all the Directors as more particularly provided in the Articles. 

  

	 	(F)	If the Board so authorises or requests, auditors, consultants, advisers and employees shall be permitted to attend and speak at meetings of the Board, but not to vote.

  

	4.9.	The Board may delegate any of its powers including the day-to-day running of the business of the Company to a committee or committees consisting of such members or member of its
body as it thinks fit and any committee so formed shall, in the exercise of the powers so delegated, conform to any regulations that may be imposed on it by the Board. 

  

	4.10.	The secretary of the Company shall be nominated by Online BVI. 

  

	4.11.	The auditors of the Company shall initially be PricewaterhouseCoopers. 

  

	4.12.	The financial year end shall be 31 December of each year. 

  

	5.	SHAREHOLDERS’ MEETING 

  

	5.1.	Any Shareholder shall be entitled to convene a general meeting (including an ordinary or extraordinary meeting) by lodging with the secretary of the Company and the other
Shareholder a written notice together with an agenda specifying the business to be transacted thereat no later than seven Business Days prior to the date of such Shareholders’ meeting. 

  

	5.2.	The quorum of Shareholders’ meetings shall be attended by two or more Shareholders who in the aggregate (together with their Affiliates) represent more than 75 per cent of
the issued share capital of the Company (whether present in person or by proxy or representative). 

  

	5.3.	A quorum must be present at the beginning of and throughout each Shareholders’ meeting. 

  

	5.4.	If within 30 minutes of the time appointed for a Shareholders’ meeting a quorum is not present, the meeting shall stand adjourned until the same time and place on the tenth day
after the date of such original meeting and if at such adjourned meeting a quorum is not present within 30 minutes from the time appointed for such adjourned meeting, the Shareholder present shall constitute a quorum (whether present in person or by
proxy or representative). Questions arising at any Shareholders’ meeting shall be decided by a simple majority of votes except where a greater majority is required by the Articles, this Deed, any other agreement between the Shareholders or any
applicable law. 

  

	5.5.	Shareholders may participate in a Shareholders’ meeting by means of conference telephone or similar communications equipment whereby all persons participating in the meeting
can hear each other and such participation shall constitute presence in person. 

  

	5.6.	Shareholders’ resolutions may be passed by written resolution signed by or on behalf of both Shareholders as more particularly provided in the Articles. Written resolutions may
only be passed if unanimously approved by both Shareholders. 

  

 9 

	5.7.	A copy of the minutes of each meeting of Shareholders shall be sent to each Shareholder within 14 days after the meeting. 

  

	5.8.	The Shareholders shall exercise all voting rights and other powers of control available to them in relation to the Company to procure that the Company shall not without the prior
approval of both Shareholders: 

  

	 	(A)	change its legal name; or 

  

	 	(B)	pass any resolution the result of which would be the termination of the Company, or make any composition or arrangement with its creditors. 

  

	5.9.	As a separate and independent undertaking, the Company agrees with each Shareholder that it shall (so far as it is legally able to do so) observe and comply with the provisions,
prohibitions and restrictions in this Clause 5. 

  

	6.	MATTERS REQUIRING SUPER-MAJORITY CONSENT 

  

	6.1.	The following actions by the Company shall require the prior written consent of Shareholder(s) holding an aggregate of more than 75 per cent of the entire issued share capital
of the Company (which consent may be given by their nominated Directors): 

  

	 	(A)	the setting up of any new business, or the discontinuance of any existing business, except to the extent that any such setting up of a new business or discontinuance of an existing
business is performed directly and specifically in furtherance of, and pursuant to, the Company’s performance of obligations under the Co-Branding Agreement; 

  

	 	(B)	the borrowing of any money or the incurring of any debt, commitment or the making of any loan or advance; 

  

	 	(C)	the creating, incurring or suffering to exist of any mortgage, pledge, lien, charge, security interest, equity, claim or encumbrance on or with respect to, or lease of, any of its
property or assets; 

  

	 	(D)	enter into any agreement which (1) cannot be terminated by it without penalty within 12 months of its commencement; or (2) may be terminated by it with penalty after 12
months of its commencement but only to the extent any such penalty is limited to monetary damages and is not permitted to exceed in any circumstance €50,000, except to the extent that any such agreement (i) is entered into directly and
specifically in furtherance of, and pursuant to, the Company’s performance of obligations under the Co-Branding Agreement, and (ii) terminates on the expiration or termination, for whatever reason, of the Co-Branding Agreement;

  

	 	(E)	any acquisition or disposal of any asset(s) or liability(ies) (whether actual or contingent, present or future) in a single or series of transaction(s) exceeding €250,000;

  

	 	(F)	any acquisition of or consolidation or merger with any other entity, or the sale or other disposition of all or substantially all of the Company’s assets;

  

 10 

	 	(G)	the acquisition or disposal of shares or other securities or interest in any company or business, the incorporation of any subsidiary or foreign branch or the entering into of any
joint venture or partnership, or the dissolution of any such company, joint venture or partnership, except to the extent that any such transaction is conducted directly and specifically in furtherance of, and pursuant to, the Company’s
performance of obligations under the Co-Branding Agreement; 

  

	 	(H)	the factor or assignment of any debts, except to the extent that any such factor or assignment is entered into directly and specifically in furtherance of, and pursuant to, the
Company’s performance of obligations under the Co-Branding Agreement; 

  

	 	(I)	the entry into any transaction not at arm’s length; 

  

	 	(J)	the grant of any power of attorney by the Company, except to the extent that such power of attorney is granted for the limited purpose of conducting ministerial or administrative
acts on behalf of the Company; 

  

	 	(K)	the appointment or dismissal of the auditors of the Company for the time being or change the accounting reference date; 

  

	 	(L)	any resolution for the winding up, dissolution or liquidation of the Company; 

  

	 	(M)	the voluntary making of a general assignment for the benefit of the Company’s creditors or the voluntary engagement of a receiver or manager appointed over all or a substantial
part of the Company’s assets; 

  

	 	(N)	the issue or allotment of any of the Shares or other securities of the Company or options or other right to subscribe for or purchase any of the Shares or other securities of the
Company, or the repurchase or redemption of any Shares or other securities of the Company; 

  

	 	(O)	the creation of any interest in any real property; 

  

	 	(P)	the entry into or termination of any profit sharing arrangement, except to the extent that any such arrangement (i) is entered into directly and specifically in furtherance of,
and pursuant to, the Company’s performance of obligations under the Co-Branding Agreement, and (ii) terminates on the expiration or termination, for whatever reason, of the Co-Branding Agreement, provided, however, that, in no event will
any income or profits paid by the Company with respect to such arrangement be deemed Direct Expenses (as defined in the Co-Branding Agreement) under the Co-Branding Agreement, or otherwise reduce the Adjusted Net Revenue (as defined in the
Co-Branding Agreement) thereunder, absent super-majority consent from the Shareholders required hereby; 

  

	 	(Q)	the assignment, licence, transfer, disposal of, or otherwise dealing with any intellectual property rights other than licences entered into in the ordinary course of business;

  

	 	(R)	the application for registration of any intellectual property rights or allowing any registration of intellectual property rights to lapse or be cancelled; 

 

	 	(S)	the prosecution or any infringement action against parties or defending any challenge to the validity of any intellectual property rights except to the extent that any such actions
are conducted directly and specifically in furtherance of, and pursuant to, the Company’s performance of obligations under the Co-Branding Agreement; 

  

 11 

	 	(T)	the making of any claim, disclaimer, surrender, election or consent for tax purposes (other than with respect to Earned Income Tax payable in the PRC, Individual Income Tax for
Employees and VAT); 

  

	 	(U)	the reorganisation of its share capital in any manner; 

  

	 	(V)	save and except in accordance with Clause 9, the declaration, setting aside or payment of any dividend or distribution in respect of any Share; 

  

	 	(W)	the repayment of any indebtedness of the Company to any Shareholder; 

  

	 	(X)	any amendment to the Articles or the passing of any resolution inconsistent with the Articles; 

  

	 	(Y)	any material change to the Company-Skype Branded Application and/or the Company-Skype Branded Web Site; 

  

	 	(Z)	pass any resolution (whether pursuant to Part II of the Companies Act or otherwise) whereby its classification or status may be changed; 

  

	 	(AA)	enter into or vary any contract or arrangement (whether legally binding or not) with any of the Directors or Shareholders or with any associate or Affiliate of a Director or
Shareholder; 

  

	 	(BB)	give any guarantee, indemnity or security in respect of the obligations of any other person; 

  

	 	(CC)	sell, transfer, lease, licence or in any way dispose of its business, undertaking or freehold or leasehold property or any part thereof or interest therein or (except in the
ordinary course of business) do any of the foregoing with any other of its assets or any interest therein; 

  

	 	(DD)	subject to Clause 6.1(A), change the nature or scope of its business as carried on for the time being or commence any new business not being ancillary or incidental to such
business; 

  

	 	(EE)	enter into any material contract or arrangement outside the ordinary course of its business whereby any person would or might receive remuneration calculated by reference to its
income or profits, except to the extent that any such contract or arrangement (i) is entered into directly and specifically in furtherance of, and pursuant to, the Company’s performance of obligations under the Co-Branding Agreement, and
(ii) terminates on the expiration or termination, for whatever reason, of the Co-Branding Agreement, provided, however, that in no event will any income or profits paid by the Company with respect to such contract or arrangement be deemed
Direct Expenses (as defined in the Co-Branding Agreement under the Co-Branding Agreement, or otherwise reduce the Adjusted Net Revenue (as defined in the Co-Branding Agreement) thereunder, absent super-majority consent from the Shareholders required
hereby; and 

  

	 	(FF)	commence any legal or arbitration proceedings (other than routine debt collection), except to the extent that any such actions are conducted directly and specifically in furtherance
of, and pursuant to, the Company’s performance of obligations under the Co-Branding Agreement, 

  

 12 

 PROVIDED THAT the Company shall not be bound by any provision of this Deed to the extent that it would
constitute an unlawful fetter on any statutory power of the Company, but such provision shall remain valid and binding as regards all other Parties to which it is expressed to apply and such provision shall take effect so as to include an obligation
on the part of each of the other Parties to exercise all their respective powers and rights so as to procure, so far as they are able, that the Company complies with such provision notwithstanding that it is not bound by it. 
  

	7.	FURTHER OBLIGATIONS OF THE PARTIES 

  

	7.1.	In consideration of Skype entering into this Deed, Tom Holding unconditionally and irrevocably guarantees to the other Parties (other than Online BVI) the due and punctual
performance and observance by Online BVI, the Online Group and the Group of all their respective obligations, commitments, undertakings, warranties and indemnities under or pursuant to this Deed and agrees to indemnify the other Parties (other than
Online BVI) against all losses, liabilities, costs, charges, expenses, actions, proceedings, claims and demands which such Party may suffer through or arising from any breach by Online BVI, the Online Group and/or the Group of their respective
obligations, commitments, warranties or undertakings under or pursuant to this Deed. The liability of Tom Holding under this Deed shall not be released or diminished by any variation of the terms of this Deed (whether or not agreed by Tom Holding),
any forbearance, neglect or delay in seeking performance of the obligations hereby imposed or any granting of time for such performance. All sums payable by Tom Holding shall be paid immediately on demand without any deduction, withholding,
counterclaim or set-off. 

  

	7.2.	This guarantee is to be a continuing guarantee and accordingly is to remain in force until all the obligations or liabilities of Online BVI, the Online Group and the Group shall
have been performed or satisfied in full. This guarantee is in addition to and without prejudice to and not in substitution for any rights or security which Parties (other than Online BVI) may now or hereafter have or hold for the performance and
observance of the obligations, commitments, undertakings and warranties of Online BVI, the Online Group and the Group under or in connection with this Deed. 

  

	7.3.	In consideration of Online BVI entering into this Deed, Skype Holding unconditionally and irrevocably guarantees to the other Parties (other than Skype) the due and punctual
performance and observance by Skype and the Skype Group of all their respective obligations, commitments, undertakings, warranties and indemnities under or pursuant to this Deed and agrees to indemnify the other Parties (other than Skype) against
all losses, liabilities, costs, charges, expenses, actions, proceedings, claims and demands which such Party may suffer through or arising from any breach by Skype and the Skype Group of their respective obligations, commitments, warranties or
undertakings under or pursuant to this Deed. The liability of Skype Holding under this Deed shall not be released or diminished by any variation of the terms of this Deed (whether or not agreed by Skype Holding), any forbearance, neglect or delay in
seeking performance of the obligations hereby imposed or any granting of time for such performance. All sums payable by Skype Holding shall be paid immediately on demand without any deduction, withholding, counterclaim or set-off.

  

	7.4.	This guarantee is to be a continuing guarantee and accordingly is to remain in force until all the obligations or liabilities of Skype and the Skype Group shall have been performed
or satisfied in full. This guarantee is in addition to and without prejudice to and not in substitution for any rights or security which Parties (other than Skype) may now or hereafter have or hold for the performance and observance of the
obligations, commitments, undertakings and warranties of Skype and the Skype Group under or in connection with this Deed. 

  

 13 

	7.5.	In the event that a Tom Party, a Skype Party, the Company or any other member of the Group (“Affected Party”) is prevented from performing an obligation or
undertaking or complying with any provision under this Deed as a direct result of a breach of any of the terms of this Deed or the Co-Branding Agreement (“Breach”) by: 

  

	 	(A)	in the case of a Tom Party, a Skype Party; 

  

	 	(B)	in the case of a Skype Party, a Tom Party; and 

  

	 	(C)	in the case of the Company or any member of the Group, a Skype Party or a Tom Party, 

 and the Affected Party provides written notice to the breaching party detailing the Breach and requiring the breaching party to cure the Breach within thirty (30) days of the date of the notice, the Affected
Party shall not be obligated to perform the relevant obligation or undertaking affected by the Breach so long as the Breach remains uncured where such non-performance or non-compliance would be a material breach of this Deed and shall not be liable
for such material breach. For the avoidance of doubt, the withholding by any Party of consent as a Shareholder under this Deed, as such consent may be required in this Deed from time to time (including, without limitation, pursuant to Clause 6),
shall not be deemed a Breach. 
  

	7.6.	Without prejudice to Clause 9, the Company shall, and Online BVI shall cause the Company to: 

  

	 	(A)	prepare annual revenue and capital budgets which shall be submitted to all members of the Board not less than seven Business Days prior to the commencement of each financial year;

  

	 	(B)	keep true and accurate books of account and records in accordance with usual accounting practices and procedures and procure that such books and records are audited by an
independent auditor from time to time as soon as possible after the end of each financial year; 

  

	 	(C)	allow the Shareholders and their authorised representatives the right by prior appointment and during normal business hours to inspect its books and accounting records, to make
extracts and copies therefrom at their own expense; 

  

	 	(D)	supply to the Shareholders such regular management, financial and other information as either of them may from time to time reasonably require including quarterly reports;

  

	 	(E)	hold meetings of the Board at regular intervals; 

  

	 	(F)	carry on and conduct its business and affairs in a proper and efficient manner and for its own benefit; 

  

	 	(G)	transact all its business on arm’s length terms; 

  

 14 

	 	(H)	not enter into any agreement or arrangement restricting its competitive freedom to provide and take goods and services by such means and from and to such persons as it may think
fit; 

  

	 	(I)	carry on its business pursuant to policies laid down from time to time by the Board; 

  

	 	(J)	take out adequate insurance against all risks usually insured against by companies carrying on the same or a similar business and (without prejudice to the generality of the
foregoing); 

  

	 	(K)	keep the Shareholders fully informed as to all material developments regarding its financial and business affairs; and 

  

	 	(L)	ensure that if the Group requires any approval, consent or licence for the carrying on of its business in the places and in the manner in which it is for the time being carried on
or proposed to be carried on the Group will use its best endeavours to maintain the same in full force and effect. 

  

	7.7.	Each of the Shareholders acknowledges and confirms that this Deed is entered into between them and will be performed in a spirit of mutual co-operation, trust and confidence and
that its intention is that the Business, profitability and reputation of the Company shall be extended and maximised by all reasonable and proper means and each Shareholder undertakes, to the extent required by the Co-Branding Agreement or the
provisions of this Deed and without limitation on the unfettered ability of the Skype Parties and the Tom Parties to engage in competitive and potentially competitive activities as permitted by the Co-Branding Agreement, to use reasonable commercial
efforts to promote the Business, PROVIDED, however, THAT neither the Skype Parties nor the Tom Parties shall be required to provide services or support or other accommodations not required to be provided by such Party pursuant to this Deed or the
Co-Branding Agreement, and no Party has made and no Party does hereby make any representation or warranty with respect to the quantity of Customers (if any) that shall arise under the Co-Branding Agreement, the commercial success of the
Company-Skype Branded Application or Company-Skype Branded Web Site, the future features or functionality of the Company-Skype Branded Application, or the aggregate revenues to be received by the Parties. 

  

	7.8.	The Company, through the Board, will keep the Shareholders, and each of the Shareholders will keep the other Shareholders, fully informed as to all material developments in relation
to any significant litigation affecting or likely to affect the Company, upon becoming aware of such litigation. 

  

	7.9.	Each Shareholder agrees with the other Shareholder to exercise its rights and powers to ensure that the Business is conducted in accordance with sound international business
principles and the highest ethical standards. 

  

	7.10.	Each Shareholder shall promptly notify the other Shareholder and the Company of all matters coming to its notice which may affect the title to or enjoyment of the Company’s
premises, assets or property, and of all significant notifications, orders, demands and other communications received from any government or other authority in relation to the Business, assets or property. 

  

	8.	WARRANTIES 

  

	8.1.	Online BVI hereby represents and warrants to Skype in the following terms: 

  

 15 

	 	(A)	it has all requisite capacity and authority to enter into this Deed; and 

  

	 	(B)	this Deed will be binding on it. 

  

	8.2.	Skype hereby represents and warrants to Online BVI in the following terms: 

  

	 	(A)	it has all requisite capacity and authority to enter into this Deed; and 

  

	 	(B)	this Deed will be binding on it. 

  

	9.	DIVIDEND POLICY 

  

	9.1.	The Company shall, and the Shareholders shall procure that the Company shall, for each Quarter, distribute all of the Distributable Profits for that Quarter to the Shareholders as
follows: 

  

	 	(A)	during any period in which the Co-Branding Agreement is not terminated or expired, in the following proportions – 100 per cent to Online BVI, and 0 percent to Skype and
Skype shall have no right to receive, and acknowledges Online BVI’s right to receive and consents to the Company distributing to Online BVI for the account of Online BVI, all and any dividend Skype is entitled to as a shareholder of the Company
during such period; and 

  

	 	(B)	during any period occurring after the termination or expiration of the Co-Branding Agreement, and to the extent this Deed is not otherwise terminated, in proportion to their
shareholding in the Company – 51 per cent to Online BVI and 49 per cent to Skype. 

  

	9.2.	All distributions shall be made within 90 days of the end of the Quarter in question and shall be paid in Euros, and in the event the Distributable Profits are presented by the
Company’s auditors in currencies other than Euros, then the Company shall convert the relevant amounts payable into Euros based on the exchange rate published by the Wall Street Journal on the day the distribution is paid.

  

	10.	TRANSFERS OF SHARES 

  

	10.1.	Subject to the provisions of this Deed, no transfer of Shares shall be made by either Shareholder and no Shareholder shall otherwise sell, mortgage, charge, or otherwise dispose of
or encumber the whole or any part of its shareholding or assign or otherwise purport to deal with the beneficial interest therein or any right in relation thereto separate from the legal interest. 

  

	10.2.	Notwithstanding Clause 10.1, the Parties agree that a transfer of Shares to a transferee who is and remains a subsidiary of the ultimate holding company of the transferor
Shareholder shall be permitted PROVIDED THAT: 

  

	 	(A)	the obligations of the transferor Shareholder under this Deed will remain unaffected by the proposed transfer; and 

  

	 	(B)	the Shares will be re-transferred to the transferor Shareholder immediately upon the transferee ceasing to be a subsidiary of such ultimate holding company.

  

	10.3.	It shall be a condition precedent to the right of either Shareholder to transfer any Shares that the transferee (if not already bound by the provisions of this Deed) executes a Deed
of Adherence (or a deed of ratification and accession (in such form as may be reasonably required by the other Shareholder), under which the transferee shall agree to be bound by and shall be entitled to the benefit of this Deed as if an original
Party). 

  

 16 

	11.	DURATION 

  

	11.1.	This Deed shall continue in full force and effect until the Company shall be wound up or otherwise cease to exist as a separate corporate entity or unless terminated earlier
pursuant to Clauses 11.2, 11.3, 11.4, 11.5, 11.6, 12.1 or 12.2. 

  

	11.2.	If an order is made or an effective resolution is passed or analogous proceedings are taken for the winding up of the Company other than for the purposes of amalgamation or
reconstruction, or if all or substantially all of the assets of the Company are expropriated or otherwise placed under the direct control of any government, or if the Company makes a general assignment for the benefit of its creditors or has a
receiver or manager appointed over all or a substantial part of its undertaking or assets, any Shareholder shall be entitled forthwith to terminate this Deed by delivery of a notice of termination to the other Shareholder. 

 

	11.3.	This Deed shall terminate in the event that all the Shares in the Company are held beneficially by one Shareholder and/or its Affiliate(s). 

  

	11.4.	This Deed shall terminate in relation to any Shareholder after it ceased to be a holder of Shares in the Company. 

  

	11.5.	This Deed shall terminate in the event that any of the Shares are listed on any stock exchange. 

  

	11.6.	This Deed shall terminate on the mutual agreement of the Parties. 

  

	11.7.	Termination of this Deed pursuant to this Clause 11 shall not release any Party from any other liability which at the time of termination has already accrued to the other Parties.
Nothing in the immediately preceding sentence of this Clause 11.7 shall affect or be construed or operate as a waiver of the right of any Party aggrieved by any breach of this Deed to be compensated for any loss, injury or damage resulting therefrom
which is incurred either before or after such termination. 

  

	12.	TERMINATION 

  

	12.1.	Either Shareholder may give notice in writing (“Termination Notice”) to the other Shareholder (in this Clause 12 referred to as “Defaulter”) of its desire
forthwith to terminate this Deed after it has received actual (not constructive) notice of the occurrence of any of the following events: 

  

	 	(A)	if a petition is presented or a proceeding is commenced or an order is made or an effective resolution is passed for the winding-up, insolvency, administration, reorganisation,
reconstruction, dissolution or bankruptcy of the Defaulter or for the appointment of a liquidator, receiver, administrator, trustee or similar officer of the Defaulter or of all or any part of its business or assets; 

  

	 	(B)	if the Defaulter is unable or admits its inability to pay its debts as they fall due or enters into any composition or other arrangement with its creditors or is declared or becomes
bankrupt or insolvent; 

  

	 	(C)	if a creditor takes possession of all or any part of the business or assets of the Defaulter or any execution or other legal process is enforced against the business or any
substantial asset of the Defaulter and is not discharged within 90 days; 

  

 17 

	 	(D)	if any procedure or step is taken in any jurisdiction analogous to any of the matters referred to in this clause; 

  

	 	(E)	if the Defaulter ceases to carry on its business or any substantial part thereof or if the Defaulter disposes of or threatens to dispose of or any governmental or other authority
expropriates or threatens to expropriate all or any substantial part of its business or assets or displaces or threatens to displace the management of the Defaulter; 

  

	 	(F)	if the Defaulter or any Affiliate of the Defaulter is in material breach of its obligations hereunder or under any Transaction Document and such breach, if capable of remedy, has
not been remedied at the expiry of 30 days following written notice to that effect having been served on the Defaulter by the other Shareholder indicating the steps required to be taken to remedy the failure; and/or 

  

	 	(G)	if the Defaulter or any Affiliate of the Defaulter repeats or continues (after written warning) to breach its obligations hereunder or under any Transaction Document (such breach,
having not been remedied within 30 days following written notice to that effect having been served on the Defaulter by the other Shareholder indicating the steps required to be taken to remedy the failure). 

  

	12.2.	Either Shareholder may give a Termination Notice to the other Shareholder of its termination of this Deed in the event of the expiration (or notice by such Shareholder of its intent
to not renew any existing term) or termination, for whatever reason, of the Co-Branding Agreement. 

  

	12.3.	If a Termination Notice is given pursuant to Clause 12.1, or pursuant to Clause 12.2 as a result of the termination, for whatever reason (other than by expiration or notice of
intent to not renew any existing term), of the Co-Branding Agreement, the Shareholder not in default, and not otherwise delivering a Termination Notice pursuant to Clause 12.2, (in this Clause 12 hereinafter referred to as “Beneficiary”)
shall (without prejudice to its other rights and remedies) have the right, upon termination of this Deed: 

  

	 	(A)	to require the Defaulter to purchase all (but not part only) of its Shares at any time during the period of three months from the date of termination. Upon expiry of such
three-month period such “put” option (“Put Option”) shall lapse if not previously exercised; or 

  

	 	(B)	to purchase all (but not part only) of the Defaulter’s Shares at any time during the period of three months from the date of termination. Upon expiry of such three-month period
such “call” option (“Call Option”) shall lapse if not previously exercised; or 

  

	 	(C)	to liquidate and dissolve the Company (in which event the Defaulter shall take such action as the Beneficiary may request to effect such liquidation or dissolution).

 For purposes of clarity, this Clause 12.3 shall not apply in the event the Co-Branding Agreement expires or a Shareholder
provides notice of its intent to not renew any then existing term of the Co-Branding Agreement. 
  

 18 

	12.4.	In the event that the then existing term of the Co-Branding Agreement expires or a Shareholder provides notice of its intent to not renew any then existing term thereof, either
Shareholder (“Purchasing Shareholder”) may, during the period of thirty (30) days from the date of such expiration, make a written offer to purchase the other Shareholder’s (“Other Shareholder”) Shares at
the Appraised Price (“Purchase Offer”). Within thirty (30) days of its receipt of the Purchase Offer, the Other Shareholder may provide written notice to the Purchasing Shareholder (“Counter Notice”) that,
rather than selling its Shares, it has determined to purchase the Shares of the Purchasing Shareholder. Unless the Purchasing Shareholder shall receive a Counter Notice within the time period set forth above, it shall become bound to buy the Other
Shareholder’s Shares as set forth in its Purchase Offer and at the Appraised Price and in accordance with the terms set out in Clauses 12.6, 12.7 and 12.8. In the event that the Other Shareholder delivers a Counter Notice, it shall become bound
to buy the Purchasing Shareholder’s Shares as set forth in such Counter Notice and at the Appraised Price and in accordance with the terms set out in Clauses 12.6, 12.7 and 12.8. Neither the Purchase Offer nor the Counter Notice, as applicable,
shall be revocable by the applicable sending Shareholder otherwise than with the consent in writing of the other Shareholder. 

  

					
	12.5.	  	(A)	  	The Put Option and the Call Option in favour of the Beneficiary shall be exercised by the Beneficiary serving on the Defaulter written notice (“Option Notice”) of its wish to
exercise the relevant option.
			
		  	(B)	  	The Option Notice shall specify the number of Shares in respect of which the option is exercised, and the Option Notice shall not be revocable by the Beneficiary otherwise than with the consent
in writing of the Defaulter. Upon service of an Option Notice, the Defaulter shall become bound to buy or (as the case may be) to sell the Shares specified therein at the Appraised Price and in accordance with the terms set out in Clauses 12.6, 12.7
and 12.8.

  

	12.6.	The price at which any purchase or sale contemplated by Clauses 12.3, 12.4 and 12.5 shall be the Appraised Price of the relevant Shares at the time of the applicable Option Notice,
Purchase Offer or Counter Notice. The Appraised Price shall be determined in accordance with Clause 1.1. 

  

	12.7.	Completion of the purchase or sale pursuant to an Option Notice, Purchase Offer or Counter Notice, as applicable, shall take place no later than seven Business Days after the date
on which the Appraised Price applicable thereto shall have been determined or, if later, the date on which the condition set out in Clause 12.8 shall have been fulfilled. 

  

	12.8.	Completion of a purchase or sale pursuant to an Option Notice, Purchase Offer or Counter Notice, as applicable, shall be conditional upon all necessary government and other consents
having been obtained and being valid and subsisting. 

  

	13.	EFFECT OF WINDING UP OF THE COMPANY; TERMINATION OF THIS DEED 

 Save as otherwise provided herein, if the Company is placed in winding-up, or if this Deed is otherwise terminated, then the provisions of this Deed (other than Clauses 1, 9, 11, 12, 13, 14, 15 and 17 through 31)
shall cease to have effect save in relation to any antecedent claims which may have arisen between the Parties. 
  

 19 

	14.	CONFIDENTIALITY 

  

	14.1.	Each of the Parties (other than the Company) undertakes to the Company that it will not at any time hereafter make use of or disclose or divulge to any third party any information
relating to the Company or any subsidiary of the Company or information about the other Party which it has acquired as a result of entering this Deed (“Confidential Information”) PROVIDED THAT this obligation shall not extend to
information: 

  

	 	(A)	which is in or comes into the public domain otherwise than through the default of either of the Parties; 

  

	 	(B)	which was already in the possession of such Party prior to the negotiations between the Parties leading to the execution of this Deed as evidenced by documentation in such
Party’s possession at the date hereof; 

  

	 	(C)	the disclosure of which is agreed by all the Parties; 

  

	 	(D)	which is required to be made available to the public or disclosed or divulged pursuant any law or regulation (including any stock exchange requirement) or to an order of a court of
competent jurisdiction; 

  

	 	(E)	which is owned by such Party pursuant to the terms of the Co-Branding Agreement or provided on a non-confidential basis under the terms of the Co-Branding Agreement;

  

	 	(F)	which is disclosed to employees or professional advisors or investors or financiers of such Party and such disclosure is necessary to enable such employees or professional advisors
properly to fulfil their duties; or 

  

	 	(G)	which is independently developed or acquired by a Party without reliance on any Confidential Information received from another Party. 

  

	14.2.	Nothing in this Clause 14 shall prevent a Party which owns any intellectual property rights or other rights in any asset pursuant to the Co-Branding Agreement or otherwise from
using, disclosing or divulging any information incorporated in or related to such asset in accordance with the terms of the Co-Branding Agreement. 

  

	14.3.	Each of the Parties will procure that its subsidiaries and Affiliates will observe the restrictions contained in the foregoing provisions of this Clause 14 and that its employees
will observe the restrictions contained in this Clause 14. 

  

	15.	ENFORCEMENT OF THE COMPANY’S RIGHTS 

 If
any Shareholder or any Affiliate of a Shareholder (in whatever capacity) is in breach of any obligation which he owes to any member of the Group (whether under this Deed or otherwise) or has misapplied or retained or become liable or accountable for
any money or property of any member of the Group, or has been guilty of any misfeasance or breach of any fiduciary or other duty in relation to any member of the Group or is under any obligation to indemnify any member of the Group against any
liability then it is agreed that the prosecution of any right of action of any member of the Group in respect thereof shall be passed to the other Shareholder who shall have full authority on behalf of any member of the Group to negotiate, litigate
and settle any claim arising thereout and the all Shareholders shall take all steps within their power to give effect to the provisions of this Clause 15. 
  

 20 

	16.	CONSOLIDATION OF ACCOUNTS 

  

	16.1.	Each of the Parties agrees that, from the date hereof, the Company will be a subsidiary of Tom Holding and the financial results of the Company and its subsidiaries shall be
consolidated into the financial statements of Tom Holding and/or its Affiliates. 

  

	16.2.	Each of the Parties hereto shall do all such reasonable acts and things (but not including the incurrence of any financial obligation not specifically required by the Transaction
Documents, the forbearance or waiver of any right provided under the Transaction Documents, or any modification of the rights or obligations of such Party under any of the Transaction Documents) to ensure that the financial results of the Group
shall be consolidated into the financial statements of Tom Holding and/or its Affiliates. 

  

	16.3.	For so long as the Company is a subsidiary of Tom Holding, each of Skype and Skype Holding agrees that it shall not treat the Company as its subsidiary nor consolidate the financial
results of the Company and its subsidiaries into the financial statements of Skype, Skype Holding or any of its Affiliates. 

  

	17.	FURTHER ASSURANCE 

 The Parties shall do and
execute or procure to be done and executed all such further acts, deeds, documents and things as may be necessary to give full effect to the terms and intent of this Deed. 
  

	18.	RESTRICTIONS ON ANNOUNCEMENTS 

 Each of the
Parties undertakes that it will not (save as required by law or any applicable regulatory body (including, without limitation, The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission of Hong Kong)) make any announcement in
connection with this Deed unless the other Parties shall have given their respective consents to such announcement (which consents may not be unreasonably withheld and may be given either generally or in a specific case or cases and may be subject
to conditions). 
  

	19.	NO PARTNERSHIP 

 Nothing contained or implied
in this Deed shall constitute or be deemed to constitute a partnership or agency between the Parties and save as expressly agreed herein none of the Parties shall have any authority to bind or commit any other Party. 
  

	20.	CONFLICT WITH ARTICLES  

 The Shareholders
hereby agree that if and to the extent that the Articles conflict with the provisions of this Deed, this Deed shall prevail for so long as it is in force to regulate the way in which they exercise their respective voting rights as shareholders of
the Company and each Shareholder shall take all such further steps as may be necessary or requisite to ensure that the provisions of this Deed shall prevail. 
  

	21.	RIGHTS TO INJUNCTIVE RELIEF 

 The Parties
acknowledge that remedies at law or damages may be inadequate to them to provide full compensation in the event of a material breach relating to the other Parties’ obligations, representations, and warranties hereunder, and each Party shall
therefore be entitled to seek injunctive relief or specific performance in the event of any actual or threatened material breach by a Party, without the necessity of having to prove any damages in connection therewith. 
  

 21 

	22.	COSTS 

 Each Party shall pay its own costs
and disbursements of and incidental to the preparation and execution of this Deed. 
  

	23.	ASSIGNMENT 

 Save as otherwise provided
herein or with the prior written consent of the other Parties, the benefits and obligations conferred by this Deed upon each of the Parties are personal to that Party and shall not be, and shall not be capable of being, assigned, delegated,
transferred or otherwise disposed of save an assignment to a permitted transferee of that Party’s Shares in accordance with Clause 10. 
  

	24.	ENTIRE AGREEMENT 

  

	24.1.	This Deed (together with any documents referred to herein, including, without limitation, the Transaction Documents) constitutes the whole agreement between the Parties and
supersedes any previous agreements, arrangements or understandings between them relating to the subject matter hereof. 

  

	24.2.	Each of the Parties acknowledges that it is not relying on any statements, warranties or representations given or made by any of them relating to the subject matter hereof, save as
expressly set out in the Transaction Documents and, having negotiated and freely entered into this Deed, agrees that it shall have no remedy in respect of any other such representation or warranty except in the case of fraud. Each Party acknowledges
that its legal advisers have explained to it the effect of this Clause 24. 

  

	25.	VARIATION 

 No variation or amendment to this
Deed shall be effective unless in writing signed by authorised representatives of each of the Parties. 
  

	26.	NOTICES 

  

	26.1.	Each notice, demand or other communication given or made by any Party under this Deed shall be in writing and delivered or sent to each of the other Parties at its address,
facsimile number set out below (or such other addresses or facsimile numbers as the addressee has by five days’ prior written notice specified to the other Parties): 

  

			
	To Online BVI	  	
	and Tom Holding:	  	8th Floor, Tower W3
		  	Oriental Plaza
		  	No.1 Dong Changan Avenue
		  	Dong Chang District
		  	Beijing, 1000738
		  	The People’s Republic of China
		
		  	Attention:                          the Company
Secretary
		
		  	Facsimile number:             (8610) 8518-1176
		  	E-mail address:                  angelam@tomgroup.com

  

 22 

			
	With a copy to:	  	
		
	TOM.com International Limited	  	 48th
Floor

		  	 The Center

		  	 99 Queen’s Road Central

		  	 Hong Kong

		
		  	 Attention:                            the Company Secretary

		
		  	 Facsimile number:               (852) 2189
7446

		  	 E-mail
address:                    angelam@tomgroup.com

		
	 To Skype
 and Skype
Holding:
	  	
 Skype Communications, S.A.

		  	 6 rue Adophe Fischer

		  	 L-1520 Luxembourg

		  	 Luxembourg

		
		  	 Attention:                            Chief Executive Officer

		
		  	 Facsimile number:               44-207-734-9060

		  	 E-mail address:   niklas.zennstrom@skype.net

		
	To the Company:	  	 8th
Floor, Tower W3

		  	 Oriental Plaza

		  	 No.1 Dong Changan Avenue

		  	 Dong Chang District

		  	 Beijing, 1000738

		  	 The People’s Republic of China

		
		  	 Attention:                            the Company Secretary

		
		  	 Facsimile number:              (8610) 8518-1176

		  	 E-mail
address:                    angelam@tomgroup.com

  

	26.2	Any notice, demand or other communication so addressed to the other Parties shall be deemed to have been delivered: 

  

	 	(A)	if personally delivered, upon delivery at the relevant address; 

  

	 	(B)	if sent by pre-paid post within PRC, two Business Days after the date of posting; 

  

	 	(C)	if sent by pre-paid airmail or by air courier from or to any place outside the PRC, in the case of airmail, seven Business Days after the date of posting or, in the case of air
courier, two Business Days after delivery to the courier; 

  

	 	(D)	if sent by facsimile, when despatched, subject to confirmation of uninterrupted transmission by a transmission report PROVIDED THAT any notice despatched by facsimile after 17:00
hours (at the place where facsimile is to be received on any day) shall be deemed to have been received at 08:00 on the next Business Day; or 

  

	 	(E)	if sent by electronic mail, when despatched, subject to the sender not having received notification of unsuccessful delivery and subject to the same provisions concerning receipt
after 17:00 hours which apply to notices sent by facsimile. 

  

 23 

	27.	WAIVER 

 No failure or delay by any Party in
exercising any right, power or remedy under this Deed shall operate as a waiver thereof, nor shall any single or partial exercise of the same preclude any further exercise thereof or the exercise of any other right, power or remedy. Without limiting
the foregoing, no waiver by any Party of any breach of any provision hereof shall be deemed to be a waiver of any subsequent breach of that or any other provision hereof. 
  

	28.	SEVERABILITY 

 If any provision or part of a
provision of this Deed or its application to any Party, shall be, or be found by any authority of competent jurisdiction to be, invalid or unenforceable, such invalidity or unenforceability shall not affect the other provisions or parts of such
provisions of this Deed, all of which shall remain in full force and effect. 
  

	29.	ACKNOWLEDGEMENT BY COMPANY 

 The Company
acknowledges the terms of this Deed and, in consideration of the Shareholders agreeing to enter into it, undertakes that it will not and, so far as it is able, will procure that no other person will, do anything which is in breach of or inconsistent
with the terms hereof. 
  

	30.	COUNTERPARTS 

 This Deed may be entered into
on separate engrossments, each of which when so executed and delivered shall be an original but each engrossment shall together constitute one and the same instrument and shall take effect from the time of execution of the last engrossment.
Immediate evidence that an engrossment has been executed may be provided by transmission of such engrossment by facsimile machine with the original executed engrossment to be forthwith put in the mail. 
  

	31.	GOVERNING LAW AND JURISDICTION 

  

	31.1.	This Deed shall be governed by and construed in accordance with the laws of England and the Parties irrevocably submit to the exclusive jurisdiction of the courts in London,
England. 

  

	31.2.	Each of the Parties hereby irrevocably appoints the following persons as its agent to receive and acknowledge on its behalf service of any writ, summons, order, judgment or other
notice of legal process in England: 

 For Online BVI and Tom Holding: 
 Simmons & Simmons 
 Citypoint

 One Ropemaker Street 
 London

 EC2Y 9SS United Kingdom 
  

 24 

 For Skype and Skype Holding: 
 S Technologies 
 2nd Floor, 7-11 Lexington
Street 
 London 
 W1F 9AF

 United Kingdom 
 For the
Company: 
 Simmons & Simmons 
 Citypoint 
 One Ropemaker Street 
 London 
 EC2Y 9SS 
 United Kingdom 
 If for any reason the relevant agent named in this Clause 31.2 (or its successor) refuses to
serve or no longer serves as agent of the relevant Party for this purpose, the relevant Party shall promptly appoint a successor agent, notify each of the other Parties thereof and deliver to each of the other Parties a copy of the new process
agent’s acceptance of appointment, PROVIDED THAT until each of the other Parties receive such notification, the Party or Parties not having received such notification shall be entitled to treat the agent named above (or its said successor) as
the agent of such Party for the purposes of this Clause 31.2. Each of the Parties agrees that any such legal process shall be sufficiently served on it if delivered to such agent for service at its address set forth above whether or not such agent
gives notice thereof to it. 
  

 25 

 SCHEDULE 1: DEED OF ADHERENCE 
 [Date] 
 BY THIS DEED [I/we],
[•], [having our registered office at [•]]/[of [•]] intending to become a shareholder of Tel-Online Limited (“Company”) hereby agree with the Company and each of its shareholders to comply with and to be bound by all
of the provisions of a shareholders’ deed dated 22 August 2005 entered into between TOM Online (BVI) Limited, TOM Online Inc., Skype Communications, S.A., Skype Technologies, S.A. and the Company (a copy of which has been delivered to us
and which we have initialled and attached hereto for identification) (“Shareholders Deed”) in all respects as if we were a party to the Shareholders Deed and were named therein as a Shareholder (as defined in the Shareholders Deed)
and a Party (as defined in the Shareholders Deed) and on the basis that references therein to each of “Shareholder” and “Party” include a separate reference to us. 
 IN WITNESS WHEREOF this Deed has been executed by us and is intended to be and is hereby delivered on the date appearing at the head hereof. 
  

			
	[The COMMON SEAL of	  	)
	[·]	  	)
	was hereunto affixed	  	)
	by [·]	  	)
	with the authority of its board of directors	  	)
	in the presence of:	  	)
		  	)
		
	[SIGNED, SEALED and DELIVERED by	  	)
	[·]	  	)
	in the presence of:	  	)
		  	)

  

 26 

 IN WITNESS WHEREOF this Deed has been executed on the day and year first above written.

  

			
	The COMMON SEAL of	  	)
	TOM ONLINE (BVI) LIMITED	  	)
	was hereunto affixed	  	)
	by	  	)
	in the presence of:	  	)
		  	)
		
	The COMMON SEAL of	  	)
	TOM ONLINE INC.	  	)
	was hereunto affixed	  	)
	by	  	)
	in the presence of:	  	)
		  	)
		
	The COMMON SEAL of	  	)
	SKYPE COMMUNICATIONS, S.A.	  	)
	was hereunto affixed	  	)
	by	  	)
	in the presence of:	  	)
		  	)
		
	The COMMON SEAL of	  	)
	SKYPE TECHNOLOGIES, S.A.	  	)
	was hereunto affixed	  	)
	by	  	)
	in the presence of:	  	)
		  	)
		
	The COMMON SEAL of	  	)
	TEL-ONLINE LIMITED	  	)
	was hereunto affixed	  	)
	by	  	)
	in the presence of:	  	)
		  	)

  

 27

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]