Document:

EX-10.62 CALL PTION AGREEMENT, DATED NOVEMBER 30,

 

Exhibit 10.62

Confidential

Call Option Agreement

among

Hailong Zhu

New Allyes Information Technology (Shanghai) Co., Ltd

and

Shanghai MSN Advertisement Co., Ltd.

 

 

Call Option Agreement

This Call Option Agreement (this “Agreement”) is entered into in Shanghai of the People’s
Republic of China (the “PRC”) as of November 30, 2004 by and among the following Parties:

	(1)	 	Hailong Zhu, Resident of the PRC, holding the Identification Card of the PRC (No.
110108680408041), with the address at Room 2504, No.4 Building of Lijing Park, No.1 Lane of
Xujiahui Road, Shanghai (hereinafter “Shareholder”)
	 
	(2)	 	New Allyes Information Technology (Shanghai) Co., Ltd., a wholly-owned foreign enterprise
incorporated under the laws of China (hereinafter “Company”)
	 
	(3)	 	Shanghai MSN Advertisement Co., Ltd., a company of limited liabilities incorporated under the
laws of PRC (hereinafter “SH MSN”)
	 
	 	 	(Any sole party hereinafter shall be individually referred to as a “Party” and collectively,
the “Parties”.)

Whereas:

	(1)	 	Shareholder is the enrolled shareholders of SH MSN, legally holding a portion of 50% of the
equity interest in SH MSN, the equity structure proportion of SH MSN is listed in the Appendix
I as of the execution date of this Agreement.
	 
	(2)	 	The Shareholder and the Company concluded the Loan Agreement on November 1, 2004 and the
Equity Pledge Agreement on November 30, 2004.
	 
	(3)	 	The Shareholder intends to transfer to the company or the person(s) designated by it
(hereinafter “Designee(s)”), and the Designee(s) is willing to accept, all his respective
equity interest in SH MSN, to the extent not violating PRC Law.
	 
	(3)	 	In order to conduct the above equity transfer, the Shareholder agree to jointly grant the
Company an irrevocable call option for equity transfer (hereinafter the “Call Option”), under
which and to the extent permitted by PRC Law, the Shareholder shall on demand of the Company
transfer the Option Equity (as defined below) to the Company and/or the Designee(s) in
accordance with the provisions contained herein.

Therefore, the Parties hereby have reached the following agreement upon mutual consultations:

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Article 1 — Definition

	1.1	 	Except as otherwise construed in the context, the following terms in this Agreement shall be
interpreted to have the following meanings:

“PRC Law” shall mean the then valid laws, administrative regulations, administrative rules, local
regulations, judicial interpretations and other binding regulatory documents of the People’s
Republic of China.

“Designee(s)” shall mean individuals, companies, Chinese-foreign equity joint ventures, partnership
enterprises, trust or non-company organizations.

“Option Equity” shall mean, in respect of the Shareholder, all of the equity interest held thereby
in the SH MSN Registered Capital (as defined below).

“SH MSN Registered Capital” shall mean the registered capital of SH MSN as of the execution date of
this Agreement, i.e., RMB500,000 which shall include any expanded registered capital as the result
of any capital increase within the term of this Agreement.

“Transferred Equity” shall mean the equity of SH MSN which the Company or Designee(s) has the right
to require the Shareholder to transfer to it or its designated entity or individual when the
Company or Designee(s) exercises its Call Option (hereinafter the “Exercise of Option”) in
accordance with Article 3.2 herein, the amount of which may be all or part of the Option Equity and
the details of which shall be determined by the Company or the Designee(s) at its sole discretion
in accordance with the then valid PRC Law and from its commercial consideration.

“Transfer Price” shall mean all the consideration that the Company or the Designee(s) is required
to pay to the Shareholder in order to obtain the Transferred Equity upon each Exercise of Option.

“Business Permits” shall mean any approvals, permits, filings, registrations etc. which SH MSN is
required to have for legally and validly operating its advertisement designing, producing, agency,
publishing and all such other businesses, including but not limited to the Business License of the
Corporate Legal Person, the Tax Registration Certificate and such other relevant licenses and
permits as required by the then PRC Law.

“SH MSN Assets” shall mean all the tangible and intangible assets which SH MSN owns or has the
right to use during the term of this Agreement, including but not limited to any immoveable and
moveable assets, and such intellectual property rights as trademarks, copyrights, patents,
proprietary know-how, domain names and software use rights.

“Material Agreement” shall mean an agreement to which SH MSN is a party and

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which has a material impact on the businesses or assets of SH MSN.

“Loan Agreement” shall mean the Loan Agreement entered into between the Shareholder and the
Company.

	1.2	 	The references to any PRC Law herein shall be deemed

	 	(1)	 	to include the references to the amendments, changes, supplements and reenactments of
such law, irrespective of whether they take effect before or after the formation of this
Agreement; and
	 
	 	(2)	 	to include the references to other decisions, notices or regulations enacted in
accordance therewith or effective as a result thereof.

	1.3	 	Except as otherwise stated in the context herein, all references to an Article, clause, item
or paragraph shall refer to the relevant part of this Agreement.

Article 2 – Grant of Call Option

	 	 	The Shareholder agrees to grant the Company or the Designee(s) hereby irrevocably and without
any additional conditions with a Call Option, under which the Company or the Designee(s) shall
have the right to require the Shareholder to transfer the Option Equity to the Company or the
Designee(s) in such method as set out herein and as permitted by PRC Law. The Company or the
Designee(s) also agrees to accept such Call Option.

Article 3 – Method of Exercise of Option

	3.1	 	To the extent permitted by PRC Law, the Company shall have the sole discretion to determine
the specific time, method and times of its Exercise of Option.
	 
	3.2	 	If the then PRC Law permits the Company or the Designee(s) to hold all the equity interest of
SH MSN, then the Company shall have the right to elect to exercise all of its Call Option at
once, where the Company or the Designee(s) shall accept all the Option Equity from the
Shareholder at once; if the then PRC Law permits the Company or the Designee(s) to hold only
part of the equity in SH MSN, the Company shall have the right to determine the amount of the
Transferred Equity within the extent not exceeding the upper limit of shareholding ratio set
out by the then PRC Law (hereinafter the “Shareholding Limit”), where the Company or the
Designee(s) shall accept such amount of the Transferred Equity from the Shareholder. In the
latter case, the Company shall have the right to exercise its Call Option at multiple times in
line with the gradual deregulation of PRC Law on the permitted Shareholding Limit, with a view
to ultimately acquiring all the Option Equity.

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	3.3	 	At each Exercise of Option by the Company, the Shareholder shall transfer their respective
equity in the SH MSN to the Company or the Designee(s) respectively in accordance with the
amount required by the Company. The Company or the Designee(s) shall pay the Transfer Price to
the Shareholder for the Transferred Equity accepted in each Exercise of Option.
	 
	3.4	 	In each Exercise of Option, the Company may accept the Transferred Equity by itself or
designate any third party to accept all or part of the Transferred Equity.
	 
	3.5	 	On deciding each Exercise of Option, the Company shall issue to the Shareholder a notice for
exercising the Call Option (hereinafter the “Exercise Notice”, the form of which is set out as
Appendix II hereto). The Shareholder shall, upon receipt of the Exercise Notice, forthwith
transfer all the Transferred Equity in accordance with the Exercise Notice to the Company or
the Designee(s) in such method as described in Article 3.3 herein.
	 
	3.6	 	The Shareholder hereby undertakes and guarantees that once the company issues the Exercise
Notice:

	 	(1)	 	it shall immediately hold or request to hold a shareholders’ meeting and adopt a
resolution through the shareholders’ meeting, and take all other necessary actions to
agree to the transfer of all the Call Option to the Company or the Designee(s) at the
Transfer Price;
	 
	 	(2)	 	it shall immediately enter into an equity transfer agreement with the Company or
the Designee(s) for transfer of all the Transferred Equity to the Company or the
Designee(s) at the Transfer Price; and
	 
	 	(3)	 	it shall provide the Company with necessary support (including providing and
executing all the relevant legal documents, processing all the procedures for government
approvals and registrations and bearing all the relevant obligations) in accordance with
the requirements of the Company and of the laws and regulations, in order that the
Company or the Designee(s) may take all the Transferred Equity free from any legal
defect.

	3.7	 	At the meantime of this Agreement, the Shareholder shall respectively enter into a power of
attorney (hereinafter the “Power of Attorney”, the form of which is set out as Appendix III
hereto), authorizing in writing any person designated by the Company to, on behalf of the
Shareholder, to enter into any and all of the legal documents in accordance with this
Agreement so as to ensure that the Company or the Designee(s) takes all the Transferred Equity
free from any legal defect. Such Power of Attorney shall be delivered for custody by the
Company and the Company may, at any time if necessary, require the Shareholder to enter into
multiple copies of the Power of Attorney respectively and deliver the same to the

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	 	 	relevant government department.
	 
	3.8	 	The Transferred Price obtained by the Shareholder upon each Exercise of Option shall be first
used to repay the relevant loans of the Shareholder under the Loan Agreements.

Article 4 – Representations and Warranties

	4.1	 	The Shareholder hereby represents and warrants as follows:

	 	4.1.1	 	The Shareholder is a PRC citizen with full capacity, with full and independent
legal status and legal capacity to execute, deliver and perform this Agreement, and may
act independently as a litigant party.
	 
	 	4.1.2	 	The Shareholder has full power and authorization to execute and deliver this
Agreement and all the other documents to be entered into by it in relation to the
transaction referred to herein, and it has the full power and authorization to complete
the transaction referred to herein. This Agreement is executed and delivered by Personal
Shareholders legally and properly. This Agreement constitutes the legal and binding
obligations on Personal Shareholders and is enforceable on it in accordance with its
terms and conditions.
	 
	 	4.1.3	 	The Shareholder is the enrolled legal owner of the Option Equity as of the
effective date of this Agreement, and except the rights created by this Agreement, the
Shareholder shall cause the shareholders’ meeting not to approve any legal or beneficial
rights or interest of the equity to be deal by sale, transfer, mortgage or other ways or
to permit any other guarantees set up upon it. In accordance with this Agreement, the
Company or the Designee(s) may, after the Exercise of Option, obtain the proper title to
the Transferred Equity free from any lien, pledge, claim and other encumbrances and third
party rights.
	 
	 	4.1.4	 	SH MSN shall obtain complete Business Permits as necessary for its operations upon
this Agreement taking effect, and SH MSN shall have sufficient rights and qualifications
to operate within PRC the businesses of advertising and other business relating to its
current business structure. SH MSN has conducted its business legally since its
establishment and has not incurred any cases which violate or may violate the regulations
and requirements set forth by the departments of commerce and industry, tax, culture,
news, quality technology supervision, labor and social security and other governmental
departments or any disputes in respect of breach of contract.

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	4.2	 	The Company hereby represents and warrants as follows:

	 	4.2.1	 	The Company is a limited liability corporation duly registered and validly
existing under PRC Law, with independent status as a legal person; The Company has full
and independent legal status and legal capacity to execute, deliver and perform this
Agreement, and may act independently as a subject of actions.
	 
	 	4.2.2	 	The Company has full power and authorization to execute and deliver this Agreement
and all the other documents to be entered into by it in relation to the transaction
referred to herein, and it has the full power and authorization to complete the
transaction referred to herein.

Article 5 – Undertakings by the Shareholders

The Shareholder hereby undertakes:

	5.1	 	Within the term of this Agreement that he must take all necessary measures to ensure that SH
MSN is able to obtain all the Business Permits necessary for its business in a timely manner
and all the Business Permits remain in effect at any time.
	 
	5.2	 	The Shareholder hereby undertakes within the term of this Agreement that without the prior
written consent by the Company,

	 	5.2.1	 	the Shareholder shall not transfer or otherwise dispose of any Option Equity or
create any encumbrance or other third party rights on any Option Equity;
	 
	 	5.2.2	 	it shall not increase or decrease the SH MSN Registered Capital;
	 
	 	5.2.3	 	it shall not dispose of or cause the management of SH MSN to dispose of any of
the SH MSN Assets (except as occurs during the arm’s length operations);
	 
	 	5.2.4	 	it shall not terminate or cause the management of SH MSN to terminate any
Material Agreements entered into by SH MSN, or enter into any other Material Agreements
in conflict with the existing Material Agreements;
	 
	 	5.2.5	 	it shall not appoint or cancel or replace any executive directors or members of
board of directors (if any), supervisors or any other management personnel of SH MSN to
be appointed or dismissed by the Shareholders;
	 
	 	5.2.6	 	it shall not announce the distribution of or in practice release any

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	 	 	 	distributable profit, dividend or share profit or cast affirmative votes regarding
the aforesaid distribution or release;
	 
	 	5.2.7	 	to maintain the ownership of SH MSN to all its assets, it shall sign all the
necessary or appropriate documents, take all the necessary or appropriate actions, file
any necessary or appropriate claim or make any necessary and appropriate defence to all
the claims;
	 
	 	5.2.8	 	it shall not amend the Articles of Association of SH MSN;
	 
	 	5.2.9	 	it shall ensure that SH MSN shall not lend or borrow any money, or provide
guarantee or engage in security activities in any other forms, or bear any substantial
obligations other than on the arm’s length basis.

	5.3	 	The Shareholder hereby undertakes that it must make all its efforts during the term of this
Agreement to develop the business of SH MSN, and ensure that the operations of SH MSN are
legal and in compliance with the regulations and that it shall not engage in any actions or
omissions which might harm the SH MSN Assets or its credit standing or affect the validity of
the Business Permits of SH MSN.

Article 6 — Confidentiality

	6.1	 	Notwithstanding the termination of this Agreement, the Shareholder shall be obligated to keep
in confidence the following information (hereinafter collectively the “Confidential
Information”):

	 	(i)	 	information on the execution, performance and the contents of this Agreement;
	 
	 	(ii)	 	the commercial secret, proprietary information and customer information in relation
to the Company known to or received by it as the result of execution and performance of
this Agreement; and
	 
	 	(iii)	 	the commercial secrets, proprietary information and customer information in
relation to SH MSN known to or received by it as the shareholder of SH MSN.

	 	 	The Shareholder may use such Confidential Information only for the purpose of performing its
obligations under this Agreement. The Shareholder shall not disclose the above Confidential
Information to any third parties without the written consent from the Company, or they shall
bear the default liability and indemnify the losses.
	 
	6.2	 	Upon termination of this Agreement, the Shareholder shall, upon demand by the Company,
return, destroy or otherwise dispose of all the documents, materials or software containing
the Confidential Information and suspend using such Confidential Information.

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	6.3	 	Notwithstanding any other provisions herein, the validity of this Article shall not be
affected by the suspension or termination of this Agreement.

Article 7 – Term of Agreement

	7.1	 	This Agreement shall take effect as of the date of formal execution by the Parties and
terminate when all the Option Equity is legally transferred under the name of the Company and
the Designee(s) in accordance with the provisions of this Agreement.

Article 8 — Notice

	8.1	 	Any notice, request, demand and other correspondences made as required by or in accordance
with this Agreement shall be made in writing and delivered to the relevant Party.
	 
	8.2	 	The abovementioned notice or other correspondences shall be deemed to have been delivered
when it is transmitted if transmitted by facsimile; it shall be deemed to have been delivered
when it is delivered if delivered in person; it shall be deemed to have been delivered five
(5) days after posting the same if posted by mail.

Article 9 – Liability for Breach of Contract

	9.1	 	The Parties agree and confirm that, if the Shareholder (hereinafter the “Defaulting Party”)
breaches substantially any of the provisions herein or omits substantially to perform any of
the obligations hereunder, or fails substantially to perform any of the obligations under this
Agreement, such a breach or omission shall constitute a default under this Agreement
(hereinafter a “Default”), then the Company shall have the right to require the Defaulting
Party to rectify such Default or take remedial measures within a reasonable period. If the
Defaulting Party fails to rectify such Default or take remedial measures within such
reasonable period or within ten (10) days of non-defaulting Party’s notifying the Defaulting
Party in writing and requiring it to rectify the Default, then non-defaulting Party shall have
the right at its own discretion to select any of the following remedial measures:

(1) to terminate this Agreement and require the Defaulting Party to indemnify it for all
the damage; or

(2) mandatory performance of the obligations of the Defaulting Party hereunder and
require the Defaulting Party to indemnify it for all the damage.

	9.2	 	The Parties agree and confirm that in no circumstances shall the Shareholder

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	 	 	request the termination of this Agreement for any reason, except otherwise stipulated by
law or this Agreement.
	 
	9.3	 	The rights and relieves prescribed in this Agreement are accumulative and don’t exclude
any other rights or relieves ruled by the laws.
	 
	9.4	 	Notwithstanding any other provisions herein, the validity of this Article shall stand
disregarding the suspension or termination of this Agreement.

Article 10 — Miscellaneous

	10.1	 	This Agreement shall be prepared in the Chinese language in 2 original copies, with each
involved Party holding one (1) copy hereof.
	 
	10.2	 	The formation, validity, execution, amendment, interpretation and termination of this
Agreement shall be subject to PRC Law.
	 
	10.3	 	Any disputes arising hereunder and in connection herewith shall be settled through
consultations among the Parties to the dispute, and if the Parties to the dispute cannot reach
an agreement regarding such disputes within [thirty (30)] days of their occurrence, such
disputes shall be submitted to China International Economic and Trade Arbitration Commission
Shanghai Branch for arbitration in Shanghai in accordance with the arbitration rules of such
Commission, and the arbitration award shall be final and binding on all Parties to the
dispute.
	 
	10.4	 	Any rights, powers and remedies empowered to any Party by any provisions herein shall not
preclude any other rights, powers and remedies enjoyed by such Party in accordance with laws
and other provisions under this Agreement, and the exercise of its rights, powers and remedies
by a Party shall not preclude its exercise of its other rights, powers and remedies by such
Party.
	 
	10.5	 	Any failure or delay by a Party in exercising any of its rights, powers and remedies
hereunder or in accordance with laws (hereinafter the “Party’s Rights”) shall not lead to a
waiver of such rights, and the waiver of any single or partial exercise of the Party’s Rights
shall not preclude such Party from exercising such rights in any other way and exercising the
remaining part of the Party’s Rights.
	 
	10.6	 	The titles of the Articles contained herein shall be for reference only, and in no
circumstances shall such titles be used in or affect the interpretation of the provisions
hereof.
	 
	10.7	 	Each provision contained herein shall be severable and independent from each of other
provisions, and if at any time any one or more articles herein become invalid, illegal or
unenforceable, the validity, legality or enforceability of the

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	 	 	remaining provisions herein shall not be affected as a result thereof.
	 
	10.8	 	Upon execution, this Agreement shall substitute any other legal documents previously executed
by the Parties on the same subject. Any amendments or supplements to this Agreement shall be
made in writing and shall take effect only when properly signed by the Parties to this
Agreement.
	 
	10.9	 	Without prior written consent by the Company, the Shareholder shall not transfer to any third
party any of its right and/or obligation under this Agreement, the Company shall have the
right to transfer to any third party designated by it any of its right and/or obligation under
this Agreement after notice to the Shareholder.
	 
	10.10	 	This Agreement shall be binding on the legal successors of the Parties.

[The remainder of this page is left blank]

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IN WITNESS HEREOF, the following Parties have caused this Call Option Agreement to be executed as
of the date and in the place first here above mentioned.

Hailong Zhu

/s/ Hailong Zhu

New Allyes Information Technology (Shanghai) Co., Ltd.

Signature by Authorized Representative:

/s/ Jiangang Wang

Shanghai MSN Advertisement Co., Ltd.

Signature by Authorized Representative:

/s/ Hailong Zhu

Appendix I:

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Section I-Basic Information of SH MSN

	 	 	 
	Company Name	 	Shanghai MSN Advertisement Co., Ltd
	Registered Capital (RMB)
	 	500,000

Equity Structure

	 	 	 	 	 
	Name of the Shareholder	 	Capital Contribution (RMB)	 	Equity Structure
	Suyang Zhang
	 	250,000	 	50%
	 
	 	 	 	 
	Hailong Zhu
	 	250,000	 	50%
	 
	 	 	 	 
	Total
	 	500,000	 	100%

Appendix II:

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Format of the Option Exercise Notice

To: [Hailong Zhu]

As our company and you signed an Call Option Agreement as of November 30, 2004 (hereinafter the
“Option Agreement”), and reached an agreement that you shall transfer the equity you hold in
Shanghai MSN Advertisement Co., Ltd. (hereinafter the “SH MSN”) to our company or any third parties
designated by our company on demand of our company to the extent as permitted by PRC Law and
regulations,

Therefore, our company hereby gives this Notice to you as follows:

Our company hereby requires to exercise the Call Option under the Option Agreement and [our
company]/[name of company/individual] designated by our company shall accept the equity you hold
accounting for 50% of SH MSN Registered Capital (hereinafter the “Proposed Accepted Equity”). You
is required to forthwith transfer all the Proposed Accepted Equity to [our company]/[name of
designated company/individual] upon receipt of this Notice in accordance with the agreed terms in
the Option Agreement.

Best regards,

New Allyes Information Technology (Shanghai) Co., Ltd..

(Chop)

Authorized Representative:                     

Date:                     

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Appendix III:

Form of the Power of Attorney

I, Hailong
Zhu, hereby irrevocably entrust ___ [with his/her identity card number of
___] , as the authorized representative of me/the company, to sign the Equity
Transfer Agreement and other relevant legal documents between me and
___ regarding the
Equity Transfer of Shanghai MSN Advertisement Co., Ltd.

	 	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

15EX-10.63 EQUITY INTREESTS PLEDGE AGREEMENT, DATED

 

Exhibit 10.63

Equity Interests Pledge Agreement

This Equity Interests Pledge Agreement is entered into on the day of November 30, 2004 in Shanghai
by and between the following parties:

	 	 	 
	Pledgee:
	 	New Allyes Information Technology (Shanghai) Co., Ltd
	Address:
	 	Room E-G, Floor 28 Zhaofeng Shimao Tower, 369 Jiangsu Road, Shanghai
	 
	 	 
	Pledgor:
	 	Suyang Zhang
	Identity Code:
	 	310107581124243
	Address:
	 	Room 64, No.9 of No.74 Lane, Wuning Road, Shanghai
	 
	 	 
	WHEREAS,
	 	 

Suyang Zhang, the Pledgor, is the citizen of the People’s Republic of China (“PRC”). The
Pledgor owns 50% of the equity interest in Shanghai MSN Advertisement Co.,Ltd. Shanghai MSN
Advertisement Co., Ltd. (“SH MSN”) is a limited liability company registered in Shanghai
carrying on design, agency and dissemination of advertisement business.

The Pledgee, a wholly foreign-owned company registered in Shanghai, PRC, has been licensed by
the PRC relevant government authority to carry on the business of information technical
service. The Pledgee and the Pledgor-owned SH MSN enter into Exclusive Technical Consulting and
Services Agreement (the “ Service Agreement”) on November 30, 2004.

In order to make sure that the Pledgee collect technical service fees as normal from SH MSN,
the Pledgor is willing to pledge all its equity interest in SH MSN to the Pledgee as a security
for the Pledgee to collect technical consulting and service fees under the Service Agreement.

In order to define each Party’s rights and obligations, the Pledgee and the Pledgor through
mutual negotiations hereby enter into this Agreement based upon the following terms:

	1.	 	Definitions And Interpretation

Unless otherwise provided in this Agreement, the following terms shall have the following meanings:

 

 

	 	1.1	 	Pledge means the full content of Article 2 hereunder
	 
	 	1.2	 	Equity Interest means all its 50% equity interests in SH MSN legally held by the
Pledgor.
	 
	 	1.3	 	Rate of Pledge means the ratio between the value of the pledge under this Agreement
and the exclusive technical consulting and service fees under the Service Agreement.
	 
	 	1.4	 	Term of Pledge means the period provided for under Article 3.2 hereunder.
	 
	 	1.5	 	Service Agreement means the Exclusive Technical Consulting and Service Agreement
entered into by and between SH MSN and the Pledgee on November 30, 2004.
	 
	 	1.6	 	Event of Default means any event in accordance with Article 7 hereunder.
	 
	 	1.7	 	Notice of Default means the notice of default issued by the Pledgee in accordance
with this Agreement.

	2.	 	Pledge

	 	2.1	 	The Pledgor agrees to pledge all its equity interest in SH MSN to the Pledgee as
the guarantee for the receipt of the service fee under the Service Agreement.
	 
	 	2.2	 	Pledge under this Agreement refers to the rights owned by the Pledgee who shall be
entitled to have priority in receiving payment by the evaluation or proceeds from the
auction or sale of the equity interests pledged by the Pledgor to the Pledgee.

	3.	 	Rate Of Pledge And Term Of Pledge

	 	3.1	 	The rate of Pledge

	 	 	 	3.1.1 The rate of pledge shall be 100%

	 	3.2	 	The term of Pledge

	 	3.2.1	 	Pledge Contract shall take effect as of the date when the equity
interests under this Agreement are recorded in the Register of Shareholder of SH
MSN. The term of the Pledge is the same with the term of Service Agreement.

 

 

	 	3.2.2	 	During the Pledge, the Pledgor shall be entitled to dispose the Pledge
in accordance with this Agreement in the event that SH MSN fails to pay exclusive
technical Consulting and service fee in accordance with the Service Agreement.

	4.	 	Physical Possession Of Certificate of Pledge

	 	4.1	 	During the term of Pledge under this Agreement, the Pledgor shall deliver the
physical possession of the Certificate of Distribution and the Name List of Shareholder
of SH MSN to the Pledgee within one week as of the date of conclusion of this Agreement.
	 
	 	4.2	 	The Pledgee shall be entitled to collect the dividends from the equity interests.

	5.	 	Warranties And Representation Of The Pledgor

	 	5.1	 	The Pledgor is the legal owner of the equity interests.
	 
	 	5.2	 	The Pledgee shall not be interfered by any other the Pledgee at any time once Party
exercises the rights of the Pledgee in accordance with this Agreement.
	 
	 	5.3	 	The Pledgee shall be entitled to dispose or assign the pledge in accordance with
this Agreement.
	 
	 	5.4	 	The Pledgor does not pledge or encumber the equity interests to any other person
except for the Pledgee.

	6.	 	Covenant Of The Pledgor

	 	6.1	 	During the effective term of this Agreement, the Pledgor covenants to the Pledgee
that the Pledgor shall:

	 	6.1.1	 	Except the transfer of equity interest, as subject to the Exclusive
Purchase Right Contract entered into among the Pledgor, Pledgee and SH MSN on
November 30, 2004, to Pledgee or the person designated by Pledgee, not transfer or
assign the equity interests, create or permit to create any pledges which may have
an adverse effect on the rights or benefits of the Pledgee without prior written
consent from the Pledgee;
	 
	 	6.1.2	 	comply with and implement laws and regulations with respect to the
pledge of rights, present to the Pledgee the notices, orders or suggestions with
respect to the Pledge issued or made by the

 

 

	 	 	 	competent authority within five days upon receiving such notices, orders or
suggestions and comply with such notices, orders or suggestions, or object to
the foregoing matters at the reasonable request of the Pledgee or with consent
from the Pledgee.
	 
	 	6.1.3	 	timely notify the Pledgee of any events or any received notices which
may affect the Pledgor’s equity interest or any part of its right, and any events
or any received notices which may change the Pledgor’s any covenant and obligation
under this Agreement or which may affect the Pledgor’s performance of its
obligations under this Agreement.

	 	6.2	 	The Pledgor agrees that the Pledgee’s right of exercising the Pledge obtained from
this Agreement shall not be suspended or hampered through legal procedure by the Pledgor
or any successors of the Pledgor or any person authorized by the Pledgor or any other
person.
	 
	 	6.3	 	The Pledgor warrants to the Pledgee that in order to protect or perfect the
security over the payment of the technical consulting and service fees under the Service
Agreement, the Pledgor shall execute in good faith and cause other parties who have
interests in the pledge to execute all the title certificates, contracts, and or perform
and cause other parties who have interests to take action as required by the Pledgee and
make access to exercise the rights and authorization vested in the Pledgee under this
Agreement, and execute all the documents with respect to the changes of certificate of
equity interests with the Pledgee or the person(natural person or legal entity) designed
by the Pledgee, and provides all the notices, orders and decisions regarded as necessary
by the Pledgee with the Pledgee within the reasonable time.
	 
	 	6.4	 	The Pledgor warrants to the Pledgee that the Pledgor will comply with and perform
all the guarantees, covenants, agreements, representations and conditions for the
benefits of the Pledgee. The Pledgor shall compensate all the losses suffered by the
Pledgee for the reasons that the Pledgor does not perform or fully perform their
guarantees, covenants, agreements, representations and conditions.

	7.	 	Event Of Default

	 	7.1	 	The following events shall be regarded as the event of default:

	 	7.1.1	 	SH MSN fails to make full payment of the exclusive technical
consulting and service fees as scheduled under the Service Agreement;

 

 

	 	7.1.2	 	The Pledgor makes any material misleading or fraudulent
representations or warranties under Article 5 herein, and/or the Pledgor is in
violation of any warranties under Article 5 herein;
	 
	 	7.1.3	 	The Pledgor violates the covenants under Article 6 herein;
	 
	 	7.1.4	 	The Pledgor violates any terms and conditions herein;
	 
	 	7.1.5	 	Except for the provision in the 6.1.1 of this Agreement, the Pledgor
waives the pledged equity interests or transfers or assigns the pledged equity
interests without prior written consent from the Pledgee;
	 
	 	7.1.6	 	The Pledgor’s any external loan, security, compensation, covenants or
any other compensation liabilities (1) are required to be repaid or performed prior
to the scheduled date; or (2) are due but can not be repaid or performed as
scheduled and thereby cause the Pledgee to deem that the Pledgor’s capacity to
perform the obligations herein is affected;
	 
	 	7.1.7	 	This Agreement is illegal for the reason of the promulgation of the
related laws or the Pledgor’s incapability of continuing to perform the obligations
herein;
	 
	 	7.1.8	 	Any approval, permits, licenses or authorization from the competent
authority of the government needed to perform this Agreement or validate this
Agreement are withdrawn, suspended, invalidated or materially amended;
	 
	 	7.1.9	 	The property of the Pledgor is adversely changed and cause the Pledgee
deem that the capability of the Pledgor to perform the obligations herein is
affected;
	 
	 	7.1.10	 	The successors or assignees of the SH MSN are only entitled to perform a portion
of or refuse to perform the payment liability under the Service Agreement;
	 
	 	7.1.11	 	Other circumstances whereby the Pledgee is incapable of exercising the right to
dispose the Pledge in accordance with the related laws.

	 	7.2	 	The Pledgor shall immediately give a written notice to the Pledgee if the Pledgor
is aware of or find that any event under Article 7.1 herein or any events that may result
in the foregoing events have happened or is going on.

 

 

	 	7.3	 	Unless the event of default under Article 7.1 herein has been solved to the
Pledgee’s satisfaction, the Pledgee, at any time when the event of default happens or
thereafter, may give a written notice of default to the Pledgor and require the Pledgor
to immediately make full payment of the outstanding service fee under the Service
Agreement and other payables or dispose the Pledge in accordance with Article 8 herein.

	8.	 	Exercise Of The Right Of The Pledge

	 	8.1	 	The Pledgor shall not transfer or assign the pledge without prior written approval
from the Pledgee prior to the full repayment of the consulting and service fee under the
Service Agreement.
	 
	 	8.2	 	The Pledgee shall give a notice of default to the Pledgor when the Pledgee
exercises the right of pledge.
	 
	 	8.3	 	Subject to Article 7.3, the Pledgee may exercise the right to dispose the Pledge at
any time when the Pledgee gives a notice of default in accordance with Article 7.3 or
thereafter.
	 
	 	8.4	 	The Pledgee is entitled to have priority in receiving payment by the evaluation or
proceeds from the auction or sale of whole or part of the equity interests pledged herein
in accordance with legal procedure until the outstanding consulting and service fees and
all other payables under the Service Agreement are repaid.
	 
	 	8.5	 	The Pledgor shall not hinder the Pledgee from disposing the Pledge in accordance
with this Agreement and shall give necessary assistance so that the Pledgee could realize
his Pledge.

	9.	 	Transfer Or Assignment

	 	9.1	 	The Pledgor shall not donate or transfer his rights and obligations herein without
prior consent from the Pledgee.
	 
	 	9.2	 	This Agreement shall be binding upon the Pledgor and his successors and be
effective to the Pledgee and his each successor and assignee.
	 
	 	9.3	 	The Pledgee may transfer or assign his all or any rights and obligations under the
Service Agreement to any individual (natural person or legal entity) at any time. In this
case, the assignee shall enjoy and undertake the same rights and obligations herein of
the Pledgee as if the assignee is a party hereto. When the Pledgee transfers or assigns
the rights and obligations under the Service Agreement, at the request of the Pledgee,
the Pledgor shall execute

 

 

	 	 	 	the relevant agreements and/or documents with respect to such transfer or assignment.
	 
	 	9.4	 	After the Pledgee’s change resulting from the transfer or assignment, the new
parties to the pledge shall re-execute a pledge contract.

	10.	 	Termination

This Agreement shall not be terminated until the consulting and service fees under the Service
Agreement are paid off and the SH MSN will not undertake any obligations under the Service
Agreement any more, and the Pledgee shall cancel or terminate this Agreement within reasonable time
as soon as practicable.

	11.	 	Formalities Fees And Other Charges

	 	11.1	 	The Pledgor shall be responsible for all the fees and actual expenditures in
relation to this Agreement including but not limited to legal fees, cost of production,
stamp tax and any other taxes and charges. If the Pledgee pays the relevant taxes in
accordance with the laws, the Pledgor shall fully indemnify such taxes paid by the
Pledgee.
	 
	 	11.2	 	The Pledgor shall be responsible for all the fees (including but not limited to any
taxes, formalities fees, management fees, litigation fees, attorney’s fees, and various
insurance premiums in connection with disposition of Pledge) incurred by the Pledgor for
the reason that (1) The Pledgor fails to pay any payable taxes, fees or charges in
accordance with this Agreement; or (2) The Pledgee has recourse to any foregoing taxes,
charges or fees by any means for other reasons.

	12.	 	Force Majeure

	 	12.1	 	If this Agreement is delayed in or prevented from performing in the Event of Force
Majeure (“Event of Force Majeure”), only within the limitation of such delay or
prevention, the affected party is absolved from any liability under this Agreement. Force
Majeure, which includes acts of governments, acts of nature, fire, explosion, typhoon,
flood, earthquake, tide, lightning, war, means any unforeseen events beyond the prevented
party’s reasonable control and cannot be prevented with reasonable care. However, any
shortage of credit, capital or finance shall not be regarded as an event beyond a Party’s
reasonable control. The Pledge effected by Force Majeure who claims for exemption from
performing any obligations under this Agreement or under any Article herein shall notify
the other party of such exemption promptly and advice him of the steps to be taken for
completion of the performance.

 

 

	 	12.2	 	The Pledge effected by Force Majeure shall not assume any liability under this
Agreement. However, subject to the Pledge effected by Force Majeure having taken its
reasonable and practicable efforts to perform this Agreement, the Party claiming for
exemption of the liabilities may only be exempted from performing such liability as
within limitation of the part performance delayed or prevented by Force Majeure. Once
causes for such exemption of liabilities are rectified and remedied, both parties agree
to resume performance of this Agreement with their best efforts.

	13.	 	Dispute Resolution

	 	13.1	 	This Agreement shall be governed by and construed in accordance with the PRC law.
	 
	 	13.2	 	The parties shall strive to settle any dispute arising from the interpretation or
performance, or in connection with this Agreement through friendly consultation. In case
no settlement can be reached through consultation, each party can submit such matter to
China International Economic and Trade Arbitration Commission (“CIETAC”) for arbitration.
The arbitration shall follow the current rules of CIETAC, and the arbitration proceedings
shall be conducted in Chinese and shall take place in Shanghai. The arbitration award
shall be final and binding upon the parties.

	14.	 	Notice

	 	14.1	 	Any notice which is given by the parties hereto for the purpose of performing the
rights, duties and obligations hereunder shall be in writing. Where such notice is
delivered personally, the time of notice is the time when such notice actually reaches
the addressee; where such notice is transmitted by telex or facsimile, the notice time is
the time when such notice is transmitted. If such notice does not reach the addressee on
business date or reaches the addressee after the business time, the next business day
following such day is the date of notice. The delivery place is the address first written
above of the parties hereto or the address advised in writing including facsimile and
telex from time to time.

	15.	 	Appendices

	 	15.1	 	The appendices to this Agreement are entire and integral part of this Agreement.

 

 

	16.	 	Effectiveness

	 	16.1	 	This agreement and any amendments, modification, supplements, additions or changes
hereto shall be in writing and come into effect upon being executed and sealed by the
parties hereto.
	 
	 	16.2	 	This Agreement is written in Chinese and is executed in two counterparts.

 

 

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The Pledgee: New Allyes Information Technology (Shanghai) Co.,Ltd

Authorized Representative:  

/s/ Jiangang Wang

The Pledgor: Suyang Zhang

/s/ Suyang Zhang

 

 

Appendix A

1. Register of Shareholders of Shanghai MSN Advertisement Co., Ltd.

2. Certificate of Capital Contribution of Shanghai MSN Advertisement Co., Ltd.

3. Exclusive Technical Consulting and Services Agreement

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