Document:

Exhibit 4.42

 

Execution Version

 

SHARE PURCHASE AGREEMENT

 

This SHARE PURCHASE AGREEMENT is made and entered into as of July 16, 2018 (the “Effective Date”) by and among:

 

(1)         Alibaba Investment Limited, a company incorporated under the laws of the British Virgin Islands (the “Purchaser 1”);

 

(2)         New Retail Strategic Opportunities Fund, L.P., a limited partnership established under the laws of the Cayman Islands (the “Purchaser 2”); and

 

(3)         Gio2 Cayman Holdings Ltd, a company incorporated under the laws of the Cayman Islands (“Seller”) and Gio2 Hong Kong Holdings Limited, a company incorporated under the laws of Hong Kong (“Sale Company”).

 

Purchaser 1 and Purchaser 2 are hereinafter collectively referred to as the “Purchasers”, and each referred to as a “Purchaser”. The Purchasers, Seller, and Sale Company are hereinafter collectively referred to as the “Parties” and each a “Party”.

 

WHEREAS:

 

A.                                    Sale Company holds certain Ordinary Shares in Focus Media Information Technology Co., Ltd., a public company established under the laws of the PRC whose shares are listed on the Shenzhen Stock Exchange with stock code 002027 (the “Portfolio Company”);

 

B.                                    The Purchasers have agreed to purchase from Seller, and Seller has agreed to sell to the Purchasers, pursuant to the terms and conditions hereof, the Sale Shares (as defined below);

 

C.                                    The Parties are entering into this Agreement to set forth the terms and conditions agreed between them in respect of the aforesaid transaction.

 

NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions and understandings set forth in this Agreement, and for other good and valuable consideration, the sufficiency of which is acknowledged by the Parties, the Parties with the intent to be legally bound hereby covenant and agree as follows:

 

1.                                      DEFINITIONS

 

1.1                               Definitions. In addition to the terms defined in the recitals of and the text of this Agreement, the following terms used in this Agreement shall have the meanings ascribed to them in Schedule A attached hereto.

 

2.                                      PURCHASE AND SALE OF THE SALE SHARES

 

Purchase and Sale. Subject to the terms and conditions set forth herein, Seller agrees to sell to each Purchaser, and each Purchaser agrees to purchase from Seller, such Purchaser’s Pro-rata Share of the Sale Shares for such Purchaser’s Pro-rata Share of the Purchase Price, in each case as set forth on Schedule B.

 

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3.                                      CLOSING

 

3.1                               Closing Date. The Closing shall, subject to the satisfaction or waiver of the Conditions, take place at the office of Fangda Partners at 26/F, One Exchange Square, 8 Connaught Place, Central, Hong Kong, on August 15, 2018, or such other date as the Parties may mutually agree in writing (the “Closing Date”).

 

3.2                               Closing Date Payments; Purchasers and Sellers’ Closing Date Deliverables.

 

3.2.1                     On the Closing Date, each Purchaser shall pay, or procure the payment of, its Pro-rata Share of the Purchase Price (and, if applicable, less its Pro-rata Share of stamp duty determined in accordance with Section 7.7.4), to the Seller by wire transfer of immediately available USD funds to an account designated by Seller, which shall be notified to the Purchasers in writing by no later than 5 Business Days prior to the Closing Date (“Seller’s Account”). Notwithstanding the foregoing, the Parties agree that upon the Purchasers providing evidence that they have given irrevocable bank payment instructions to the Seller’s Account for the payment of the Purchase Price (the “Wiring Instructions”), the Seller shall be obliged to perform its respective obligations at Closing (for the avoidance of doubt, actual receipt of the Purchase Price shall be necessary for the effectiveness of the Closing).

 

3.2.2                     On the Closing Date, and subject to its receipt of copies of the Wiring Instructions in respect of its Purchase Price, (i) Seller shall deliver, or cause to be delivered, or make available, to each Purchaser each of the items listed in Part I of Schedule G,  and (ii) each Purchaser shall deliver, or cause to be delivered, or make available, to Seller each of the items listed in Part II of Schedule G.

 

3.2.3                     Seller shall, as soon as reasonably practicable and in any event by no later than three (3) Business Days after the receipt of the Purchase Price in full, issue an official receipt to the Purchasers.

 

4.                                      CONDITIONS

 

4.1                               The obligation of the Purchasers to consummate the Closing is subject to the fulfilment of the following conditions (the “Purchaser Conditions”), any of which may be waived by Purchaser 1:

 

4.1.1                     Sale Company having issued and allotted new shares to Seller such that the total issued share capital of Sale Company shall at Closing be 1,000 (for the avoidance of doubt, all such issued and outstanding shares of Sale Company immediately prior to the Closing Date shall be deemed the Sale Shares under this Agreement);

 

4.1.2                     Subject to Section 4.5, Seller having delivered to the Purchasers (i) the audited accounts of the Sale Company for the financial years ended 31 December 2016 and 31 December 2017 and for the six months ended 30 June 2018, each of which shall be covered by an unqualified opinion of one of the Big 4 Accountants that the financial statements of Sale Company give a true and fair view of the financial position, financial performance and cash flows of Sale Company as at and for the periods ending on the aforementioned dates (the “Audited Accounts”); and (ii) management accounts for the period from 1 July 2018 to the Closing Date (the “Management Accounts” and together with the Audited Accounts, the “Accounts”);

 

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4.1.3                     Seller and Sale Company having performed and complied with all obligations under this Agreement that are required to be performed or complied with by it on or before the Closing in all material respects; and

 

4.1.4                     the Seller’s Warranties remaining true and correct as of the Closing Date as though made on such date in all material respects.

 

4.2                               The obligation of Seller to consummate the Closing is subject to the fulfilment of the following conditions (the “Seller Conditions”, and together with Purchaser Conditions, the “Conditions”), any of which may be waived by Seller:

 

4.2.1                     the Purchasers having performed and complied with all obligations under this Agreement that are required to be performed or complied with by each of them on or before the Closing Date in all material respects; and

 

4.2.2                     the Purchasers’ Warranties remaining true and correct as of the Closing Date as though made on such date in all material respects.

 

4.3                               Purchaser 1 may, at any time, waive in whole or in part any of the Purchaser Conditions by written notice to the Seller and Seller may, at any time, waive in whole or in part any of its Seller Conditions by written notice to Purchaser 1.

 

4.4                               Subject to Section 4.5, if, in respect of the Closing, Seller, on one hand, or the Purchasers, on the other hand, fail(s) to comply on the Closing Date with any obligation in Section 3.2 and/or Schedule G, the non-defaulting Party shall be entitled (in addition to and without prejudice to all other rights and remedies available, including the right to claim damages) by written notice to such defaulting Party to effect Closing so far as reasonably practicable having regard to the defaults which have occurred, or to fix a new date for Closing which is no later than reasonably necessary for such defaulting Party to remedy such default and in any event no later than thirty (30) calendar days following the original Closing Date, in which case the provision of Section 3.2 and/or Schedule G shall apply to the Closing as so deferred provided that such deferral may only occur once.

 

4.5                               Notwithstanding anything to the contrary in this Agreement, if, on the Closing Date, Seller is unable to or fails to deliver the Accounts, Seller shall be entitled to, by written notice to Purchasers, to fix a new date for Closing, at its discretion, which is no later than reasonably necessary for Seller to deliver all of the Accounts and in any event no later than thirty (30) calendar days following the original Closing Date, provided that such deferral may only occur once.

 

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5.                                      TERM AND TERMINATION

 

5.1                               Term. The Parties hereby agree that this Agreement shall be effective as of the Effective Date and shall remain valid and binding on the Parties unless terminated by mutual consent in writing by Seller and Purchaser 1.

 

6.                                      WARRANTIES

 

6.1                               Seller’s Warranties. Seller hereby warrants to each Purchaser that the statements set forth in Schedule H (the “Seller’s Warranties”) are true and correct as of the Effective Date and immediately prior to Closing.

 

6.2                               Purchaser’s Warranties. Each Purchaser hereby severally, and not jointly and not jointly and severally, warrants to Seller that the statements set forth in Schedule I (the “Purchasers’ Warranties”) are true and correct as of the Effective Date and immediately prior to Closing.

 

7.                                      CERTAIN COVENANTS

 

7.1                               Pre-Closing obligations

 

Seller undertakes to procure that between the Effective Date and Closing, Sale Company shall not, without the prior written consent of the Purchasers, enter into any transaction (including but not limited to the disposal of any assets) or pass any shareholders or board resolutions or take any action other than as contemplated under this Agreement (including but not limited to the pre-Closing actions referred to in Section 4.1, Section 7.6 and any other actions reasonably necessary in order to satisfy the Purchaser Conditions as contemplated herein) or otherwise as reasonably required to maintain its corporate existence (including but not limited to the filing of Tax returns in accordance with Law).

 

7.2                               Reserved.

 

7.3                               Reserved.

 

7.4                               PRC Transfer Taxes and Pre-Closing Taxes.

 

7.4.1                     Seller acknowledge that it is required to pay certain taxes pursuant to the Tax notice issued by the PRC State Administration of Taxation titled the “State Administration of Taxation’s Bulletin on Several Issues of Enterprise Income Tax on Income Arising from Indirect Transfers of Property by Non-resident Enterprises (State Administration of Taxation Bulletin [2015] No. 7)”, as may be amended or supplemented from time to time (“Announcement 7”) arising from a sale of the Sale Shares as required pursuant to Announcement 7 or such other Taxes shown as due and owing on any return in respect of Announcement 7 (the “PRC Withholding Taxes”), to the relevant governmental authorities. Seller further acknowledges that the Purchasers shall have no obligation to pay any Tax of any nature that is required by applicable Laws to be paid by Seller or any of its Affiliates or any of its direct and indirect partners, members and shareholders arising out of the transactions contemplated by this Agreement (other than, for the avoidance of doubt, any stamp duty payable in accordance with Section 7.7).

 

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7.4.2                     Seller shall, as soon as reasonably practicable and in any event within thirty (30) days after the Effective Date, engage at its own cost and expense, any one of the Big 4 Accountants as its filing agent (the “Filing Agent”), to duly and properly make with the competent PRC Tax Authority the relevant Tax filings and disclosures that are required under applicable Laws (including Announcement 7) in connection with the sale and purchase of the Sale Shares contemplated by this Agreement, and shall, name the Purchasers as joint applicants in respect of such filing (for the avoidance of doubt, none of the filing documents shall require the approval or execution by the Purchasers and provided that naming the Purchasers as joint applicants will not result in the filing documents (or any subsequent submissions) having to require the approval or execution by the Purchasers). As soon as reasonably practicable after such filing, the Seller shall deliver to Purchaser 1 a copy of the acknowledgement of receipt in respect of such filing issued by the relevant PRC Tax Authority. Neither any Purchaser nor its Affiliates shall make any filings or disclosures with the competent PRC Tax Authority or otherwise communicate with any competent PRC Tax Authority in respect of the matters contemplated by this Agreement or any other matters relating to Seller’s Tax liabilities, without the prior written consent of Seller, unless (a) requested by a PRC Tax Authority, or (b) Seller has breached any of its obligations under this Section 7.4 (provided Purchasers have provided Seller prior written notice of any such breach).

 

7.4.3                     The Seller shall cause the Filing Agent to, on a monthly basis, give the Purchasers an update as to any development or progress in the assessment of any Taxes arising from Announcement 7 by the relevant PRC Tax Authority. Without prejudice to the foregoing, if the Seller or any of its Affiliates receives any notice or demand from any PRC Tax Authority in respect of the filing in relation to any matter set out in this Section 7.4, the Seller shall, as promptly as practicable provide a true and complete copy of such notice or demand to the Purchasers.

 

7.4.4                     Seller shall provide to the Purchasers with a copy of the official tax payment notice issued by the PRC Tax Authority, or other reasonable evidence of the PRC Tax Authority’s acceptance or confirmation of the Tax amount payable by Seller under Announcement 7 (the “Tax Assessment Notice”) as soon as reasonably practicable upon its receipt of such Tax Payment Notice. Seller shall, as soon as reasonably practicable after the assessment and final determination of Tax by the competent PRC Tax Authority pursuant to such Tax Assessment Notice, settle in full the payment of the Tax so assessed and finally determined as due and payable by Seller under Announcement 7 in connection with the sale and purchase of the Sale Shares contemplated by this Agreement (“Announcement 7 Tax Amount”) within the specified time period, and provide to the Purchasers evidence and supporting documents of the settlement and payment of such Announcement 7 Tax Amount (the “Tax Payment Certificate”).

 

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7.5                               Indemnity.

 

7.5.1                     Following the Closing, Seller shall indemnify and hold harmless the Purchasers, the Sale Companies, their respective Affiliates and any of their agents, directors, officers, and employees (the “Purchaser Indemnitees”) against any (a) Losses or Taxes imposed on any Purchaser or Sale Company arising with respect to the transactions contemplated under this Agreement as a result of Seller’s failure to pay Taxes finally determined in respect of Announcement 7 (including without limitation Losses or Taxes in connection with the Sale Shares being assessed as having a tax basis in the hands of the Purchasers which is lower than the Purchase Price solely as a result of Seller’s failure to pay Taxes in respect of Announcement 7 in accordance with this Agreement), (b) Losses or Taxes of Sale Company for all taxable periods (or portions thereof) ending on or before the Closing Date, (c) Losses or Taxes (including any Taxes as result of Announcement 7) arising from any transaction of Sale Company effected on or prior to the Closing Date, and (d) Losses arising from failure of the Sale Company to comply with sections 430 and 431 of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong).

 

7.5.2                     Notwithstanding anything to the contrary in this Agreement, and other than in respect of fraud by Seller, Seller’s total liability to the Purchaser Indemnitees for all claims or Losses for all matters arising under or in connection with this Agreement shall not exceed in the aggregate, an amount equal to the Purchase Price actually received by Seller in respect of the Sale Shares.

 

7.6                               Deposit Amounts.

 

7.6.1                     The Parties hereby acknowledge that as at the Effective Date, Sale Company maintains one or more RMB-denominated cash deposit bank accounts in the PRC with a financial institution in the PRC (each, a “RMB Bank Account”), one or more USD-denominated cash deposit accounts in Hong Kong with a financial institution in Hong Kong (each a “HK Bank Account”) and/or one or more USD-denominated cash deposit accounts in Hong Kong with a financial institution in t United States (each a “US Bank Account”, and together with the RMB Bank Accounts and the HK Bank Accounts, the “Bank Accounts”), the details of which are set forth in Schedule F. The total cash balance in each Bank Account as of the Effective Date (except as otherwise noted therein) is set forth in Schedule F.

 

7.6.2                     The Parties hereby acknowledge and agree that (i) to the extent not remitted out of the following accounts prior to the Closing Date, the total cash in the RMB Bank Accounts of the Sale Company as of the Closing Date, including any interest earned prior to, on and after the Closing Date (such amount, the “RMB Deposit Amount”), the total cash in the HK Bank Account of the Sale Company as of the Closing Date, including any related interest earned prior to, on and after the Closing Date (such amount, the “HK Deposit Amount”) and the total cash in the US Bank Account of the Sale Company as of the Closing Date, including any related interest earned prior to, on and after the Closing Date (such amount, the “US Deposit Amount” and together with the RMB Deposit Amount, the “Deposit Amounts”) are expressly excluded from, and shall not be deemed to be part of, the purchase and sale of the Sale Shares contemplated under this Agreement, (ii) the Deposit Amounts of the Sale Company are beneficially owned by Seller, and (iii) the Sale Company agrees to, and the Purchaser agrees to cause the Sale Company to, hold such Deposit Amounts in trust for the benefit of Seller and (iv) without the prior written consent of Seller, the Purchaser will not claim, use, transfer, dispose of or otherwise exploit the Deposit Amounts or set off or cause to be set off any other amount or obligation that may be owed to any Purchaser or otherwise against the Sale Company’s RMB Deposit Amount, HK Deposit Amount, the US Deposit Amount or the Remitted Funds.

 

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7.6.3                     The Sale Company shall, at the expense and commercially reasonable direction of Seller, seek any applicable PRC tax and regulatory approvals required to effect the conversion and remittance of the Remitted Funds (as defined below) to the applicable Seller and, as promptly as legally permissible and practicable (unless otherwise instructed in writing by the relevant Seller), from time to time in one or more transactions, (i) convert the RMB Deposit Amount into USD (at such time and at such applicable exchange rates as instructed by Seller), and remit such funds to the US Bank Account of the Sale Company, and (ii) thereafter cause such funds and all funds in Sale Company’s HK Bank Account and the existing funds in Sale Company’s US Bank Account (collectively, the “Remitted Funds”) to be paid to Seller, in each case until all of the Deposit Amounts has been remitted to Seller. Prior to Closing, the Sale Company shall have declared a dividend in the amount of the Deposit Amounts for distribution to Seller after the Closing subject to actual receipt of the Remitted Funds in accordance with this Section 7.6 (the “Dividend Payment”) by passing a resolution in a form to be approved by the Purchaser (which approval shall not be unreasonably withheld or delayed) prior to Closing.

 

7.6.4                     In furtherance of, but without limiting the generality of, the foregoing, the nominees of Seller shall remain as authorized signatories of its Bank Accounts, it being intended and agreed by the Parties that Seller shall retain control in respect of the operation of, deposit of funds to, payment of items from, withdrawal of funds from (including, without limitation, the timing of, and any applicable exchange rates to be applied, in connection with any such withdrawals), disposition of funds on deposit in or other transactions and matters related to or associated with, its Bank Accounts and the Deposit Amounts, provided that such nominees shall, and Seller shall procure its nominees to, comply with all applicable Laws at all times. At the Closing, the Sale Company shall, subject to applicable bank requirements and in furtherance of ensuring payment of the Dividend Payable, (i) cause the authorized signatory(ies) of its HK Bank Account and US Bank Account sign one or more payment instructions (to be acknowledged by the Purchaser) in a form to be approved by the Purchaser prior to Closing (which approval shall not be unreasonably withheld or delayed) (“Remitted Funds Payment Instructions”), pursuant to which the Sale Company shall instruct the financial institution at which the Sale Company has its HK Bank Account and US Bank Account to remit by wire transfer any Remitted Funds from time to time standing to the credit of its HK Bank Account and US Bank Account to Seller and (ii) enter into with Seller and financial institution a deed of assignment and/or any other agreement at the reasonable written request of Seller (in each case to be also entered into and acknowledged by the Purchaser) in a form to be approved by the Purchasers (which approval shall not be unreasonably withheld or delayed) prior to Closing, pursuant to which the Sale Company shall assign the balance from time to time standing to the credit of its RMB Bank Accounts, HK Bank Account and US Bank Account to Seller as security for the payment of the applicable Remitted Funds to Seller until all of the Sale Company’s Deposit Amounts has been remitted to Seller (“Deed of Assignment”). The Purchasers shall, upon the reasonable written request of Seller, do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, in order to carry out the intent and accomplish the purposes of this Section 7.6. Seller agrees that it will exercise its power as the authorized signatory of the Sale Company’s RMB Bank Accounts, HK Bank Account and US Bank Account, and exert its control over the Sale Company’s RMB Deposit Amount, HK Deposit Amount and US Deposit Amount, in all events in accordance with applicable Law and this Section 7.6.

 

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7.6.5                     The Purchasers agree that, until all of the Sale Company’s Deposit Amounts have been remitted to Seller in accordance with this Section 7.6, they shall not, and shall cause the Sale Company (on or after the Closing) not to, (i) directly or indirectly, take possession of, take control of, use, dispose of, deal with or otherwise exploit any RMB Deposit Amount, HK Deposit Amount, US Deposit Amount or Remitted Funds, or set off or cause to be set off any other amount or obligation that may be owed to any Purchaser or otherwise against the Sale Company’s RMB Deposit Amount, HK Deposit Amount, US Deposit Amount or Remitted Funds; (ii) withdraw, revoke, invalidate, deny or otherwise refuse to acknowledge the Dividend Payable, the Remitted Funds Payment Instructions or the Deed of Assignment or act pursuant to such Remitted Funds Payment Instructions or Deed of Assignment; or (iii) agree to any waiver or amendment of the terms of which any Bank Account of the Sale Company is maintained.

 

7.6.6                     As soon as reasonably practicable following completion of the remittance of the Sale Company’s Deposit Amounts to Seller, Seller shall, and shall cause its nominees to, do such things as are necessary to close the Bank Accounts of Sale Company.

 

7.6.7                     Seller shall pay (or reimburse Purchasers, if applicable) all fees, charges, costs, and expenses incurred in connection with its Bank Accounts, whether chargeable by the applicable bank or any other third party, including but not limited to the transactions contemplated under this Section 7.6. Seller shall indemnify and hold harmless the Purchasers and the Sale Company from and against all Losses as a result of any transactions performed (or requested by Seller to be performed) by the Purchaser in accordance with the terms of this Section 7.6.

 

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7.7                               Stamp Duty.

 

7.7.1                     The Purchasers (in their Pro Rata Share), on the one hand, and Seller, on the other hand, shall be equally responsible for the stamp duty payable to the Hong Kong Inland Revenue Department, if any, in connection with the purchase and sale of the Sale Shares.

 

7.7.2                     On or before the close of the Business Day immediately following Closing, the Purchasers shall submit the original instruments of transfer and bought and sold notes in respect of the Sale Shares to the Hong Kong Inland Revenue Department for adjudication of stamp duty and Purchasers on the one hand, and Seller on the other hand, shall to the extent reasonable cooperate with the other with respect to the preparation and filing of the relevant documents for stamping original instruments of transfer and bought and sold notes in respect of such Sale Shares as may be required.

 

7.7.3                     Following such time the Hong Kong Inland Revenue Department has assessed the stamp duty payable to the Hong Kong Inland Revenue Department, if any, in connection with the purchase and sale of the Sale Shares, the Purchasers (in their Pro Rata Share), on the one hand, and Seller, on the other hand, shall pay their respective portion of the stamp duty as soon as reasonably practicable upon such assessment by issuing a cheque in favour of “The Government of the Hong Kong Special Administrative Region”, and in any event within the time period required by the Hong Kong Inland Revenue Department.

 

7.7.4                     Prior to Closing, the Purchasers and Seller may mutually agree on a preliminary estimate of the minimum amount of Seller’s portion of the stamp duty payable, and mutually agree to deduct such amount from the Purchase Price otherwise payable to Seller, provided that the Purchasers use such deducted amount for payment, on Seller’s behalf, of the corresponding amount of Seller’s portion of the stamp duty payable.

 

7.8                               Holding of Estimated Announcement 7 Tax Amount.

 

7.8.1                     Seller agrees to, on and from Closing, hold and retain, from the Remitted Funds actually remitted to and received by the Seller in accordance with Section 7.6.3 and/or from the Purchase Price received by the Seller, an amount equal to the Estimated Announcement 7 Tax Amount until such time as provided in this Section 7.8, in one or more USD-denominated bank account(s) of Seller.

 

7.8.2                     For purposes of this Agreement, “Estimated Announcement 7 Tax Amount” means an amount equal to USD 25,820,597.86.

 

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7.8.3                     (a) Upon delivery of the Tax Assessment Notice to the Purchasers pursuant to Section 7.4.4, Seller shall be entitled to release up to the full amount of the Estimated Announcement 7 Tax Amount from its banks account(s) provided that such amount is used solely for the payment of the Announcement 7 Tax Amount pursuant to Section 7.4.4 and (b) upon delivery of the Tax Payment Certificate to the Purchaser, the balance, if any, may be released by Seller.

 

7.8.4                     Seller shall provide monthly bank account statements in respect of the Estimated Announcement 7 Tax Amount being held in such accounts pursuant to this Section 7.8.

 

8.                                      CONFIDENTIAL INFORMATION

 

8.1                               Unless otherwise permitted under this Section 8, no Party shall, without the other Parties’ prior written consent (not to be unreasonably withheld, conditioned or delayed), disclose:

 

8.1.1                     the existence or terms of this Agreement;

 

8.1.2                     the business, financial or other affairs (including future plans and targets) of any Seller or Sale Company; or

 

8.1.3                     any discussions or negotiations with regard to this Agreement, (the “Confidential Information”).

 

8.2                               No Party shall use the other Parties’ Confidential Information except to the extent necessary or required to perform this Agreement.

 

8.3                               Disclosure of Confidential Information may be made to a Party’s officers, employees, contractors, professional advisers, consultants and other agents if such disclosure is reasonably necessary to advise on this Agreement and the transaction as a whole, on the condition that the disclosing Party is responsible for procuring that the relevant third party complies with its obligations under this Section 8.

 

8.4                               Disclosure of Confidential Information may be made by any Purchaser or any Seller to its respective Affiliates and in the case of Seller, Seller’s Affiliates, for the purpose of this Section 8 include, the investors of the funds advised or managed by Seller’s Affiliates, limited partners or any of its or its Affiliates’ or limited partners’ respective officers, employees, contractors, professional advisers, consultants and other agents in connection with the transactions contemplated by this Agreement, on the condition that the disclosing Party is responsible for procuring that the relevant third party complies with its obligations under this Section 8.

 

8.5                               The obligations of confidentiality under this Section 8 do not apply to information which is:

 

8.5.1                     publicly available, other than as a result of a breach of this Agreement;

 

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8.5.2                     lawfully available to a Party from a third party who was not subject to any confidentiality restriction prior to the disclosure of such Confidential Information; or

 

8.5.3                     required to be disclosed by Law, regulation or by Order or ruling of a court or administrative body of a competent jurisdiction or by the rules of a recognized stock exchange or any regulatory body to which any Party submits (but in which case to the absolute minimum necessary) provided that the disclosing Party shall use its best endeavors, to the extent permitted to do so by Law, the court or the authority requiring disclosure, to first consult fully with the other Parties to which the Confidential Information relates to establish whether and, if so, how far it is possible to prevent or restrict such enforced disclosure and, at the other Parties’ expense, take all steps as it may require to achieve prevention or restriction.

 

8.6                               The confidentiality obligations contained in this Section 8 shall survive Closing and shall remain in effect and be binding on each Party for a period of two (2) years after the earlier of Closing and termination of this Agreement.

 

8.7                               Press Release. No Party shall make or issue any formal or informal public announcement or press release which makes reference to the consummation of the transactions contemplated under, or the terms and conditions of, this Agreement or any of the matters referred to herein or therein, including the discussion between the Parties, without the prior written consent of the other Parties.

 

9.                                      MISCELLANEOUS

 

9.1                               Notices. All notices, waivers and other communications given or made pursuant hereto (“Notices”) shall be in writing and shall be deemed effectively given: (i) upon actual delivery at the address of the Party to be notified, provided that it is delivered in person or by reputable international courier, (ii) when sent by electronic mail, without any delivery failure or similar error message, between 9:00 a.m. and 5:30 p.m. on a Business Day (and if not sent during such period, then delivery shall be deemed to have occurred as of 9:00 a.m. on the next Business Day); or (iii) when sent by facsimile transmission to the Party to be notified between 9:00 a.m. and 5:30 p.m. on a Business Day (and if not sent during such period, then delivery shall be deemed to have occurred as of 9:00 a.m. on the next Business Day), provided that the sender has received a receipt indicating proper transmission. The occurrence of any event set forth in sub-clause (i), (ii) or (iii) above shall constitute “delivery” of notice under this Agreement. All notices and other communications shall be sent to the Parties pursuant to the contact information provided in Schedule C (or to such amended contact information of a Party that is duly notified in writing by such Party giving five (5) Business Days’ notice to the other Party).

 

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9.2                               Further Assurances.

 

Each of the Parties to this Agreement shall from time to time execute and deliver all such further documents and do all acts and things as the other Parties may reasonably require to effectively carry out the full intent and meaning of this Agreement and to complete the transactions contemplated hereunder.

 

9.3                               Amendments. No modification or amendment to this Agreement shall be valid or binding unless made in writing and duly executed by Seller and Purchaser 1.

 

9.4                               Assignment.

 

This Agreement and the rights and obligations hereunder shall bind and inure to the benefit of the respective successors by operation of Law or permitted assigns of the Parties. A Party shall not assign or transfer any of its rights and obligations hereunder to any other Person without the prior written consent of the other Parties.

 

9.5                               Waiver of Rights. A delay in exercising, or failure to exercise, any right or remedy under this Agreement does not constitute a waiver of such or other rights or remedies nor will operate so as to bar the exercise or enforcement thereof nor will be treated as an affirmation of this Agreement. No single or partial exercise of any right or remedy under this Agreement will prevent further or other exercise of such or other rights or remedies. Any provision of this Agreement may be waived if, and only if, such waiver is in writing and signed by the Party against whom the waiver is to be effective.

 

9.6                               Specific Performance. This Agreement shall be specifically enforceable at the instance of any Party. The Parties agree that a non-defaulting Party may suffer immediate, material, immeasurable, continuing and irreparable damage and harm in the event of any material breach of this Agreement and the remedies at Law in respect of such breach may be inadequate and that such non-defaulting Party shall be entitled to seek specific performance against the defaulting Party for performance of its obligations under this Agreement in addition to any and all other legal or equitable remedies available to it.

 

9.7                               Governing Law and Dispute Resolution.

 

9.7.1                     This Agreement shall be governed and construed in accordance with the laws of Hong Kong without giving effect to its conflict of law principles.

 

9.7.2                     Any dispute, controversy or claim arising out of or in connection with this Agreement, including any question regarding its existence, validity, interpretation, breach or termination shall be referred to and finally resolved by arbitration at the Hong Kong International Arbitration Centre (“HKIAC”) in accordance with the HKIAC Administered Arbitration Rules (“Rules”), which Rules are deemed to be incorporated by reference into this section.

 

9.8                               Entire Agreement. This Agreement constitutes the entire agreement between the Parties hereto relating to the subject matter hereof. It supersedes any and all other agreements and term sheets, either oral, implied or in writing, between the Parties with respect to the subject matter herein.

 

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9.9                               Costs and Expenses. Except as otherwise provided herein, each Party shall bear its own expenses, including legal costs, incurred in preparing this Agreement and in relation to the transactions contemplated in this Agreement.

 

9.10                        Partial Invalidity. If any provision of this Agreement or the application thereof to any Person or circumstance shall be invalid or unenforceable to any extent for any reason including by reason of any Law, the remainder of this Agreement and the application of such provision to persons or circumstances other than those which are held to be invalid or unenforceable shall not be affected thereby, and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by Law. Any invalid or unenforceable provision of this Agreement shall be replaced with a provision which is valid and enforceable and most nearly reflects the original intent of the unenforceable provision.

 

9.11                        Counterparts. This Agreement may be executed in any number of counterparts, including by electronic delivery and portable document format (.pdf), and all such counterparts taken together shall be deemed to constitute one and the same instrument.

 

9.12                        No Third Party Beneficiaries. This Agreement shall be binding upon and inure solely to the benefit of, and be enforceable by, only the Parties and their respective successors by operation of Law and permitted assigns. A Person who is not a party to this Agreement shall have no right under the Contracts (Rights of Third Parties) Ordinance (Chapter 623 of the Laws of Hong Kong) to enforce any of its terms.

 

9.13                        Time of the Essence. Time is of the essence in the performance of the Parties’ respective obligations hereunder and all dates and times specified in this Agreement shall be strictly enforced. If any time period specified herein is extended, such extended time shall also be of the essence.

 

9.14                        Several Obligations. The Parties acknowledge and agree that, for the avoidance of doubt:

 

9.14.1              unless otherwise stated in this Agreement, the obligations of each Purchaser in this Agreement are several from the obligations of the other Purchaser, and the failure of a Purchaser to satisfy of its respective obligations shall not affect the obligations of the other Parties to this Agreement; and

 

9.14.2              notwithstanding anything to the contrary in this Agreement, Purchaser 1 hereby unconditionally and irrevocably guarantees to Seller the punctual performance by Purchaser 2 of all of its obligations under this Agreement and undertakes to Seller that (i) whenever Purchaser 2 does not pay or cause to be paid any amount when due under this Agreement, Purchaser 1 shall immediately on first demand pay such amount as if it was the principal obligor, and (ii) whenever Purchaser 2 fails to perform or cause to be performed its other obligations under this Agreement, Purchaser 1 shall immediately on demand perform (or procure performance of) and satisfy (or procure the satisfaction of) that obligation, so that the same benefits are conferred on Seller as it would have received if such obligation had been performed and satisfied by Purchaser 2. The guarantee under this Section 9.14.2 is a continuing guarantee and will extend to the ultimate balance of sums payable by Purchaser 2 under this Agreement, regardless of any intermediate payment or discharge. Purchaser 1 waives any right which it may have to first require Seller to proceed against the Purchaser 2 before claiming from Purchaser 1 under this Section 9.14.2.

 

13

 

9.15                        Waiver of Conflicts; Privilege.

 

9.15.1              Each of the Parties acknowledges and agrees that Goodwin Procter LLP and its affiliated firms (“Goodwin”) has acted as counsel to Seller and, as of immediately prior to Closing, the Sale Company in connection with the negotiation of this Agreement and consummation of the transactions contemplated hereby.

 

9.15.2              Each of the Purchasers hereby consents and agrees to, and agrees to cause Sale Company to consent and agree to, Goodwin representing Seller after the Closing, including with respect to disputes in which the interests of Seller may be directly adverse to either Purchaser (including Sale Company), even though Goodwin may have represented Sale Company in a matter substantially related to any such dispute, or may be handling ongoing matters for Sale Company. Each of the Purchasers further consents and agrees to, and agrees to cause Sale Company to consent and agree to, the communication by Goodwin to Seller in connection with any such representation of any fact known to Goodwin arising by reason of Goodwin’s prior representation of Sale Company.

 

9.15.3              In connection with the foregoing, each of the Purchasers hereby irrevocably waives and agrees not to assert, and agrees to cause Sale Company to irrevocably waive and not to assert, any conflict of interest arising from or in connection with (i) Goodwin’s prior representation of Sale Company, and (ii) Goodwin’s representation of Seller, in each case both prior to and after the Closing.

 

9.15.4              Each of the Purchasers further agrees, on behalf of itself and, after the Closing, on behalf of Sale Company, that all communications in any form or format whatsoever between or among any of Goodwin, Sale Company, and/or Seller, or any of their respective directors, officers employees or other representatives that relate in any way to the negotiation, documentation and consummation of the transactions contemplated by this Agreement or any dispute arising under this Agreement (collectively, the “Deal Communications”) shall be deemed to be retained and owned and controlled collectively by Seller and shall not pass to or be claimed by either Purchaser or Sale Company. All Deal Communications that are attorney-client privileged shall remain privileged after the Closing and the privilege and the expectation of client confidence relating thereto shall belong solely to Seller, shall be controlled by the Seller and shall not pass to or be claimed by either Purchaser or Sale Company.

 

[Remainder of page intentionally left blank]

 

14

 

 

IN WITNESS WHEREOF, the Parties have each caused this Agreement to be duly executed and delivered on the Effective Date.

 

 

	
PURCHASER 1
    	
 
    
	
 
    	
 
    
	
Alibaba Investment Limited
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Timothy Alexander   Steinert
    	
 
    
	
Name:  Timothy   Alexander Steinert
    	
 
    
	
Title:    Director
    	
 
    
			

 

[Signature Page to Share Purchase Agreement]

 

 

IN WITNESS WHEREOF, the Parties have each caused this Agreement to be duly executed and delivered on the Effective Date.

 

 

	
PURCHASER 2
    	
 
    
	
 
    	
 
    
	
New Retail Strategic Opportunities   Fund, L.P.
    	
 
    
	
 
    	
 
    

 

[Signature Page to Share Purchase Agreement]

 

 

	
SELLER
    	
 
    
	
 
    	
 
    
	
Gio2 Cayman Holdings Ltd
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Brian Lee
    	
 
    
	
Name:   Brian   Lee
    	
 
    
	
Title:     Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SALE COMPANY
    	
 
    
	
 
    	
 
    	
 
    
	
Gio2 Hong Kong Holdings Limited
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Brian Lee
    	
 
    
	
Name:   Brian   Lee
    	
 
    
	
Title:     Director
    	
 
    

 

[Signature Page to Share Purchase Agreement]

 

 

 

SCHEDULE A

 

SCHEDULE OF DEFINITIONS

 

“Affiliate” shall mean, with respect to any Person, any company, corporation, association or other Person, which, directly or indirectly, Controls, is Controlled by, or is under common Control with, such Person. The Parties agree that without limitation to the foregoing, the Purchaser’s Affiliates shall include any funds managed or advised by a Purchaser or any of its Affiliates;

 

“Agreement” shall mean this Share Purchase Agreement, as amended from time to time, together with the recitals and any Schedules attached hereto.

 

“Anti-Corruption Laws” means laws or regulations relating to anti-bribery or anti-corruption that apply to the business and dealings of Seller and/or Sale Company (as applicable) including, without limitation, the U.S. Foreign Corrupt Practices Act of 1977, as amended, and the UK Bribery Act of 2010;

 

“Big 4 Accountants” means any one of Deloitte Touche Tohmatsu, Ernst & Young, KPMG and PricewaterhouseCoopers or their respective PRC domestic Affiliates;

 

“Business Day” shall mean a day (other than a Saturday, a Sunday or a public holiday) on which commercial banks are open for business in the Cayman Islands, the PRC, Hong Kong and the State of New York.

 

“Closing” shall mean the completion of the sale and purchase of the Sale Shares in respect of Sale Company by the performance by the Parties of their respective obligations in accordance with Section 3.

 

“Consent” means any consent, approval, authorization, release, waiver, permit, grant, concession, agreement, license, exemption or order of, registration, certificate, declaration or filing with, or report or notice to, any Person, including any Governmental Authority.

 

“Control” (including with correlative meaning, the terms “Controls”, “Controlled by” and “under common Control with”) shall mean with respect to a Person (i) the ownership or control of more than 50% (fifty percent) of the voting rights or of the issued share capital (or comparable equity interests) of such Person, (ii) the right to appoint and/or remove all or the majority of the members of the board or other governing body of such Person, or (iii) the power to direct or cause the direction of the management, and exercise significant influence on the management or policies of such Person, in each case whether such ownership, control, right or power is obtained or exercised directly or indirectly, acting alone or together with another Person, and whether obtained by ownership of share capital, the possession of voting rights, through contract, pursuant to applicable Law or otherwise.

 

“DBS Financing Documents” shall mean, with respect to a Sale Company, the financing-related agreements to which such applicable Sale Company was a party, relating to the provision of debt financing by DBS Bank Ltd. and its Affiliates (“DBS”) to an Affiliate of the Portfolio Company and the granting of security by Sale Company to DBS in respect of such debt financing, including, without limitation, a Debenture dated April 30, 2015 executed by Sale Company in favour of DBS, and other ancillary documents.

 

A-1

 

“Encumbrance” means any mortgage, claim, charge (fixed or floating), pledge, lien, hypothecation, guarantee, right of set-off, trust, assignment, right of first refusal, right of pre-emption, option, restriction or other encumbrance or any legal or equitable third party right or interest including any security interest of any kind or any type of preferential arrangement (or any like agreement or arrangement creating any of the same or having similar effect);

 

“Governmental Authority” means any nation or government or any federation, province or state or any other political subdivision thereof; any entity, authority or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any government authority, agency, department, board, commission or instrumentality of the PRC, Hong Kong or any other country, or any political subdivision thereof, any court, tribunal or arbitrator, and any self-regulatory organization;

 

“Knowledge” shall mean the knowledge of a Person, after making reasonable and due inquiry.

 

“Law” shall mean all statutes, enactments, acts of legislature or parliament, laws, ordinances, rules, bye-laws, regulations, notifications, guidelines, policies, directions, directives, interpretation of, or agreements with, any Governmental Authority and Orders and, if applicable, international treaties and regulations, in each case as amended from time to time.

 

“Losses” shall mean all claims, losses, liabilities, damages, costs and expenses, including, without limitation, reasonable attorneys’ fees; provided, that (i) Losses shall not include special damages or punitive damages, and (ii) for purposes of computing Losses, there shall be deducted an amount equal to the amount of any reimbursements and any Tax benefits, received or receivable in connection with such Losses or the circumstances giving rise thereto.

 

“Order” shall mean any order, injunction, judgment, decree, ruling, writ, assessment or award of a court, arbitration body or panel or other any Governmental Authority.

 

“Ordinary Shares” shall mean ordinary shares of the Portfolio Company.

 

“Person” shall mean any natural person, limited or unlimited liability company, corporation, partnership (whether limited or unlimited), proprietorship, trust, union, association, Governmental Authority or any agency or political subdivision thereof or any other entity that may be treated as a person under Law.

 

“Portfolio Company Restructuring Documents” shall mean, with respect to a Sale Company, the restructuring-related agreements to which such applicable Sale Company was a party, relating to the privatization of the Portfolio Company from a U.S. stock exchange to its listing on Shenzhen Stock Exchange, including, without limitation, certain Share Transfer Agreements by and among Sale Company, certain Affiliates of the Portfolio Company in the PRC and the other parties thereto, a Joint Venture Operation Agreement dated April 2, 2015 by and among Sale Company, Focus Media (China) Holding Limited and other parties thereto, a Joint Venture Operation Agreement dated April 29, 2015 by and among Sale Company, Focus Media (China) Holding Limited and other parties thereto, and other ancillary documents.

 

A-2

 

“Portfolio Company Securities” shall mean the Ordinary Shares held by the Sale Company in the Portfolio Company which are more particularly detailed in Schedule D hereto.

 

“PRC” means the People’s Republic of China, but solely for the purposes of this Agreement excludes Hong Kong, Taiwan, and Macau.

 

“Pro-rata Share” means, with respect to each Purchaser, such proportion specified opposite its name in Schedule B.

 

“Prohibited Person” means any Person that is a target of or subject to any economic sanction administered by the United States government (including, without limitation, the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”), U.S. Department of State, and U.S. Department of Commerce), the United Nations, the European Union, the United Kingdom, or any other relevant Governmental Authority. Without limiting the generality of the foregoing, Prohibited Persons includes (i) any Person named, or Affiliated with any Person named, on the United States Commerce Department’s Denied Parties List, Entities and Unverified Lists; the OFAC Specially Designated Nationals or Blocked Persons (“SDN”), Foreign Sanctions Evaders (“FSE”) and Sectoral Sanctions Identifications (“SSI”) lists; the Annex to Executive Order No. 13224; the Department of State’s Debarred List; (ii) a member of any PRC military organization; or (iii) any Person with whom business transactions, including exports and re-exports, are restricted by a U.S. Governmental Authority, including, in each clause above, any updates or revisions to the foregoing and any newly published rules.

 

“Public Official” means any (i) officers, employees, or other persons working in an official capacity on behalf of any Governmental Authority, including state-owned or state-controlled enterprises; (ii) political party representatives, political party officials, or candidates for political office; and (iii) officers, employees, or other persons working in an official capacity on behalf of any public international organization, such as the United Nations or the World Bank.

 

“Purchase Price” shall mean the aggregate consideration for the Sale Shares as set forth opposite Seller’s name under the heading “Purchase Price” in Schedule E of this Agreement.

 

“RMB” shall mean Renminbi, the official currency of the PRC.

 

“Sale Shares” means the shares in the share capital of Sale Company of Seller to be sold to the Purchasers pursuant to the terms of this Agreement and which are more particularly detailed in Schedule B hereto.

 

“Securities Trading Accounts” means all securities trading accounts in the name of Sale Company, which shall hold the Portfolio Company Securities at Closing, the details of which are set forth in Schedule D.

 

“Tax” or “Taxation” shall mean any national, state, local or municipal, or other tax (including any income tax and any fine, penalty, interest, cess and surcharges or addition to tax with respect thereto), in each case, imposed by a Governmental Authority.

 

A-3

 

“Tax Authority” means any taxing, fiscal or other authority in the PRC, Hong Kong, or any other jurisdiction competent to impose, collect or enforce any liability to Tax, including the Hong Kong Inland Revenue Department, and the State Administration of Taxation of the PRC and its local tax bureaus.

 

“Tax Returns” shall mean any return (including any information return), report, statement, declaration, estimate, schedule, notice, notification, transfer pricing certificate and documents relating thereto, form, election, certificate or other document or information filed with or submitted to, or required to be filed with or submitted to, any Governmental Authority in connection with the determination, assessment, collection or payment of any Tax or in connection with the administration, implementation or enforcement of or compliance of applicable Tax Law, including any amendment thereof or attachment thereto.

 

“USD” shall mean United States Dollars, the lawful currency of the United States of America.

 

A-4Exhibit 4.43

 

Final Version

 

SHARE TRANSFER AGREEMENT

 

between

 

Power Star Holdings (Hong Kong) Limited

 

and

 

Glossy City (HK) Limited

 

and

 

Alibaba (China) Technology Co., Ltd.

 

Date: July 17, 2018

 

 

TABLE OF CONTENTS

 

	
Recitals
    	
 
    	
 
    	
1
    
	
ARTICLE I
    	
DEFINITIONS
    	
 
    	
1
    
	
SECTION 1.01
    	
DEFINED TERMS
    	
 
    	
1
    
	
SECTION 1.02
    	
DEFINITIONS
    	
 
    	
3
    
	
SECTION 1.03
    	
OTHER INTERPRETATIVE PROVISIONS
    	
 
    	
4
    
	
ARTICLE II
    	
SHARE TRANSFER
    	
 
    	
4
    
	
SECTION 2.01
    	
SHARE TRANSFER
    	
 
    	
4
    
	
SECTION 2.02
    	
TRANSFER PRICE PER SHARE AND SHARE TRANSFER   PRICE
    	
 
    	
5
    
	
ARTICLE III
    	
PAYMENT OF SHARE TRANSFER PRICE
    	
 
    	
6
    
	
SECTION 3.01
    	
PAYMENT OF SHARE TRANSFER PRICE
    	
 
    	
6
    
	
SECTION 3.02
    	
CONDITIONS TO COMPLETION OF THIS TRANSFER
    	
 
    	
6
    
	
SECTION 3.03
    	
SHAREHOLDERS’ RIGHTS
    	
 
    	
7
    
	
ARTICLE IV
    	
REPRESENTATIONS AND WARRANTIES OF THE   TRANSFERORS
    	
 
    	
7
    
	
SECTION 4.01
    	
ORGANIZATION AND AUTHORITY
    	
 
    	
7
    
	
SECTION 4.02
    	
NO CONFLICT
    	
 
    	
7
    
	
SECTION 4.03
    	
CONSENTS AND APPROVALS
    	
 
    	
8
    
	
SECTION 4.04
    	
TARGET SHARES
    	
 
    	
8
    
	
ARTICLE V
    	
REPRESENTATIONS AND WARRANTIES OF THE TRANSFEREE
    	
 
    	
8
    
	
SECTION 5.01
    	
ORGANIZATION AND AUTHORITY
    	
 
    	
8
    
	
SECTION 5.02
    	
NO CONFLICT
    	
 
    	
8
    
	
SECTION 5.03
    	
CONSENTS AND APPROVALS
    	
 
    	
8
    
	
SECTION 5.04
    	
FINANCIAL CAPACITY AND PERFORMANCE CAPACITY
    	
 
    	
9
    
	
ARTICLE VI
    	
COVENANTS
    	
 
    	
9
    
	
SECTION 6.01
    	
NOTICE OF DEVELOPMENTS
    	
 
    	
9
    
	
SECTION 6.02
    	
CONFIDENTIALITY
    	
 
    	
9
    
	
SECTION 6.03
    	
FURTHER ACTION
    	
 
    	
9
    
	
ARTICLE VII
    	
INDEMNIFICATION
    	
 
    	
10
    
	
SECTION 7.01
    	
LIABILITY FOR INDEMNIFICATION
    	
 
    	
10
    
	
SECTION 7.02
    	
OTHER REMEDIES
    	
 
    	
10
    
	
ARTICLE VIII
    	
EFFECTIVENESS AND TERMINATION
    	
 
    	
10
    
	
SECTION 8.01
    	
EFFECTIVENESS
    	
 
    	
10
    
	
SECTION 8.02
    	
TERMINATION
    	
 
    	
10
    
	
SECTION 8.03
    	
SURVIVAL
    	
 
    	
11
    
	
ARTICLE IX
    	
MISCELLANEOUS
    	
 
    	
11
    
	
SECTION 9.01
    	
EXPENSES
    	
 
    	
11
    
					

 

 

	
SECTION 9.02
    	
TAXES
    	
 
    	
11
    
	
SECTION 9.03
    	
ASSIGNMENT
    	
 
    	
12
    
	
SECTION 9.04
    	
ENTIRE AGREEMENT
    	
 
    	
12
    
	
SECTION 9.05
    	
SEVERABILITY
    	
 
    	
12
    
	
SECTION 9.06
    	
WAIVER
    	
 
    	
12
    
	
SECTION 9.07
    	
AMENDMENT
    	
 
    	
13
    
	
SECTION 9.08
    	
NO THIRD PARTY BENEFICIARIES
    	
 
    	
13
    
	
SECTION 9.09
    	
NOTICES
    	
 
    	
13
    
	
SECTION 9.010
    	
COUNTERPARTS
    	
 
    	
14
    
	
SECTION 9.011
    	
GOVERNING LAW AND DISPUTE RESOLUTION
    	
 
    	
14
    
	
SECTION 9.012
    	
LANGUAGE
    	
 
    	
14
    

 

ii

 

SHARE TRANSFER AGREEMENT

 

This Share Transfer Agreement (this “Agreement”) is entered into on July 17, 2018 in Shanghai by and among:

 

(A)   Power Star Holdings (Hong Kong) Limited, a company organized and existing under the Laws of Hong Kong, with its domicile at 28/F CITIC Tower, 1 Tim Mei Avenue, Central, Hong Kong (“Power Star”);

 

(B)   Glossy City (HK) Limited,  a company organized and existing under the Laws of Hong Kong, with its domicile at Level 54, Hopewell Centre 183 Queen’s Road East (“Glossy City”, and together with Power Star, the “Transferors”);

 

(C)   Alibaba (China) Technology Co., Ltd., a company organized and existing under the Laws of the PRC, with its domicile at 699 Wangshang Road, Binjiang District, Hangzhou (the “Transferee” and together with the Transferors, the “Parties”, and each individually a “Party” ).

 

RECITALS

 

WHEREAS, Focus Media Information Technology Co., Ltd. (the “Target Company”) is a company limited by shares organized and existing under the Laws of the PRC, and its Renminbi-denominated ordinary shares have been listed on the Shenzhen Stock Exchange (the “Exchange”) (with its stock abbreviation being “Focus Media” and its stock code being “002027”).  As of the date hereof, the total share capital of the Target Company consists of 14,677,880,280 shares, of which 406,609,165 shares are held by Power Star, representing 2.77% of the total share capital of the Target Company and 367,792,435 shares are held by Glossy City, representing 2.51% of the total share capital of the Target Company.

 

WHEREAS, the Transferors intend to transfer to the Transferee, and the Transferee intends to acquire, 774,401,600 shares of the Target Company, representing 5.28% of the total share capital of the Target Company as of the date hereof.

 

NOW, THEREFORE, in consideration of the foregoing statement of facts and the mutual agreements and covenants hereinafter set forth, the Parties agree as follows:

 

ARTICLE I         DEFINITIONS

 

SECTION 1.01                                   Defined Terms

 

In this Agreement, unless otherwise defined in the context, the following terms shall have the meanings set forth below:

 

 

“Laws” means the laws, regulations, rules and regulatory documents of the PRC or any country other than the PRC, or provincial, local or similar laws, regulations, rules and have meanings.

 

“Working Day” means any day other than Saturday, Sunday and public holidays in Hong Kong or the PRC as provided for by Laws.

 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by or under common control with such Person, or with respect to a natural person, also includes any of his/her immediate family members.  For such purpose, “Control” means the possession of the power to directly or indirectly determine the management and policies of another Person through holding of voting securities, or by contract or otherwise.

 

“Transfer Registration Date” means the date on which the Target Shares are registered with CSDCC in the name of the Transferee in its A-share securities account.

 

“RMB” means the legal currency of the PRC.

 

“Taxes” means any and all taxes, fees, levies, impositions, customs duties and other charges of any type (together with any and all interest, fines, additional taxes and additional sums collected therefor) levied by any Governmental Authorities (including without limitation tax authorities).

 

“Action” means any claim, lawsuit, complaint, appeal, arbitration, settlement, adjudication, inquiry, investigation or other procedures instituted by or against any Person.

 

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

 

“Governmental Authority” means governmental, regulatory or administrative department, organ or committee or any court, tribunal or judicial or arbitral body.

 

“Governmental Order” means any order, writ, judgment, injunction, ruling, adjudication, regulation or decision made by any Governmental Authority or jointly with any other Governmental Authority.

 

“Governmental Approval” means any consent, approval, authorization, waiver, permit, franchise, license, certificate, exemption, registration, filing, report or notice granted or made by any Governmental Authority.

 

“PRC” means the Peoples’ Republic of China, excluding only for the purpose of this Agreement Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan.

 

“CSDCC” means China Securities Depository and Clearing Company Limited Shenzhen Branch.

 

“Person” means any individual, partnership, joint-stock company, limited liability company, association, trust, unincorporated organization or other entity.

 

2

 

SECTION 1.02                                   Definitions

 

Each of the following terms is defined in the Section set forth opposite such term:

 

	
Definition
    	
 
    	
Location
    
	
 
    	
 
    	
 
    
	
“Confidential Information”
    	
 
    	
Section 6.03(a)
    
	
 
    	
 
    	
 
    
	
“this Transfer”
    	
 
    	
Section 2.01
    
	
 
    	
 
    	
 
    
	
“this Agreement”
    	
 
    	
Preamble
    
	
 
    	
 
    	
 
    
	
“Target Shares”
    	
 
    	
Section 2.01, with respect to Power Star, means   406,609,165 shares of the Target Company held by it, representing 2.77% of   the total share capital of the Target Company; with respect to Glossy City,   means 367,792,435 shares of the Target Company held by it, representing 2.51%   of the total share capital of the Target Company.
    
	
 
    	
 
    	
 
    
	
“Representative”
    	
 
    	
Section 6.03(b)
    
	
 
    	
 
    	
 
    
	
“Glossy City”
    	
 
    	
Preamble
    
	
 
    	
 
    	
 
    
	
“Share Transfer Price”
    	
 
    	
Section 2.02(a)
    
	
 
    	
 
    	
 
    
	
“Exchange”
    	
 
    	
Recitals
    
	
 
    	
 
    	
 
    
	
“Transfer Price Per Share”
    	
 
    	
Section 2.02(a)
    
	
 
    	
 
    	
 
    
	
“Target Company”
    	
 
    	
Recitals
    
	
 
    	
 
    	
 
    
	
“Power Star”
    	
 
    	
Preamble
    
	
 
    	
 
    	
 
    
	
“Non-breaching Party”
    	
 
    	
Section 7.01
    
	
 
    	
 
    	
 
    
	
“Transferee”
    	
 
    	
Preamble
    
	
 
    	
 
    	
 
    
	
“Parties”
    	
 
    	
Preamble
    
	
 
    	
 
    	
 
    
	
“Breaching Party”
    	
 
    	
Section 7.01
    
	
 
    	
 
    	
 
    
	
“Party”
    	
 
    	
Preamble
    
	
 
    	
 
    	
 
    
	
“Dispute”
    	
 
    	
Section 9.11(b)
    
	
 
    	
 
    	
 
    
	
“Payment Date”
    	
 
    	
Section 3.01
    
	
 
    	
 
    	
 
    
	
“CIETAC”
    	
 
    	
Section 9.11(b)
    
	
 
    	
 
    	
 
    
	
“Transferors”
    	
 
    	
Preamble
    

 

3

 

SECTION 1.03                                   Other Interpretative Provisions

 

In this Agreement, unless otherwise provided or required in the context:

 

(a)                                 “Hereof”, “herein”, “hereunder” and similar terms shall mean the entirety of this Agreement rather than any specific provision of this Agreement; any reference to any schedule, annex, section and sub-section shall mean the schedule, annex, section and sub-section of this Agreement, unless otherwise indicated.

 

(b)                                 The term “include” does not have a restrictive meaning, and shall mean “include without limitation”.

 

(c)                                  The table of contents and headings in this Agreement are inserted for reference only, and shall not in any way affect the interpretation of this Agreement.

 

(d)                                 Any agreement, instrument or other document referred to in this Agreement shall mean the agreement, instrument or other document which may be amended, supplemented or modified from time to time as agreed upon by the Parties.

 

(e)                                  This Agreement shall be construed to have been jointly drafted by the Parties, and shall not give rise to any assumption or burden of proof that is in favor of or adverse to any other Party on the ground that any provision in this Agreement is drafted by a Party.

 

ARTICLE II   SHARE TRANSFER

 

SECTION 2.01                                   Share Transfer

 

Pursuant to the terms and conditions of this Agreement, the Transferors will transfer to the Transferee through transfer by agreement 774,401,600 Shares of the Target Company, representing 5.28% of the total share capital of the Target Company as of the date hereof (the “Target Shares”), of which 406,609,165 shares will be transferred by Power Star to the Transferee through transfer by agreement, representing 2.77% of the total share capital of the Target Company, and 367,792,435 shares will be transferred by Glossy City to the Transferee through transfer by agreement, representing 2.51% of the total share capital of the Target Company.  The Transferee will acquire the Target Shares (“this Transfer”).

 

4

 

From the date hereof to the Transfer Registration Date of the Target Shares, if the Target Company makes profit distribution in the form of bonus shares or capitalize the capital reserves, the Transferors shall also transfer to the Transferee any bonus shares issued in connection with the Target Shares as part of the Target Shares, and the Transferee shall not be required to adjust any consideration with respect to the acquisition of such bonus shares (for the avoidance of doubt, the Share Transfer Price under Section 2.02 shall have included the price for Target Shares and any bonus shares issued in connection therewith).

 

SECTION 2.02                                   Transfer Price Per Share and Share Transfer Price

 

(a)                                 The transfer price per share of the Target Shares (the “Transfer Price Per Share”) shall be RMB9.9167, which shall not be less than ninety percent (90%) of the closing price of the stocks of the Target Company as of the one (1) trading day immediately preceding the date hereof.  The total transfer price payable by the Transferee for the Target Shares (the “Share Transfer Price”) shall be calculated on the basis of the Transfer Price Per Share multiplied by the number of the Target Shares.  The number of the Target Shares to be transferred by Power Star and Glossy City, percentage of shares to be transferred and the Share Transfer Price therefor are set forth in the table below:

 

	
No.
    	
 
    	
Name of
   Transferor
    	
 
    	
Number of Target
   Shares
    	
 
    	
Percentage of Shares
   to be Transferred
    	
 
    	
Share Transfer
   Price (RMB)
    	
 
    
	
1.
    	
 
    	
Power   Star
    	
 
    	
406,609,165
    	
 
    	
2.77
    	
%
    	
4,032,221,107
    	
 
    
	
2.
    	
 
    	
Glossy   City
    	
 
    	
367,792,435
    	
 
    	
2.51
    	
%
    	
3,647,287,240
    	
 
    
	
 
    	
 
    	
Total
    	
 
    	
774,401,600
    	
 
    	
5.28
    	
%
    	
7,679,508,347
    	
 
    

 

(b)                                 For the avoidance of doubt, each of the Transfer Price Per Share and the Share Transfer Price set forth above shall be tax-inclusive, which includes the withholding income tax, value-added tax and relevant surcharge and stamp duty required to be paid by the Transferors under the applicable tax laws of the PRC and any applicable taxes required to be paid in the jurisdiction where the Transferors are located.

 

(c)                                  From the date hereof to the Transfer Registration Date of the Target Shares, if the Target Company makes profit distribution in the form of cash, and the Transferors actually receives such distribution, the Share Transfer Price hereunder shall be adjusted according to the following formula: adjusted Share Transfer Price = Share Transfer Price — (the number of the Target Shares × the amount of pre-tax dividend per share).  The amount of pre-tax dividend per share shall be calculated by taking into account the distribution of stock dividends by the Target Company, if any, and shall be adjusted to be equal to the amount of pre-tax dividend per share calculated based on the total share capital of the Target Company as of the date hereof by adopting the approach of restoring rights.

 

5

 

ARTICLE III                   PAYMENT OF SHARE TRANSFER PRICE

 

SECTION 3.01                                   Payment of Share Transfer Price  

 

To the extent that all conditions set forth in Section 3.02 hereof are satisfied or waived (except those which shall be satisfied on the Payment Date pursuant to their terms), the Parties shall complete the transfer of the Target Shares with CSDCC within one (1) Working Day after delivery of the written notice by the Transferors under Section 3.02 hereof, and the Transferee shall pay the Share Transfer Price to the Transferors’ respective bank accounts set forth below on the same day, and provide the Transferors with the proof of bank remittance of the Share Transfer Price to the Transferors’ respective accounts as below prior to the final completion of the transfer of the Target Shares by the Parties:

 

	
Transferor
    	
 
    	
Account Name
    	
 
    	
Account Number
    
	
Power   Star
    	
 
    	
Power Star Holdings   (Hong Kong) Limited
    	
 
    	
 
    
	
Glossy   City
    	
 
    	
Glossy City (HK)   Limited
    	
 
    	
 
    

 

The day when the Share Transfer Price is fully remitted to such bank accounts shall be referred to as the “Payment Date” hereunder.  The Parties agree that, upon the receiving bank confirming that the Share Transfer Price has been remitted to the bank accounts designated by the Transferors, the Transferee shall be deemed to have fully performed its payment obligation with respect to its acquisition of the Target Shares under this Agreement.

 

SECTION 3.02                                   Conditions to Completion of This Transfer

 

Each Party’s obligation to complete this Transfer under this Agreement shall be subject to the satisfaction or written waiver by such Party of each of the following conditions prior to or on the Payment Date:

 

(a)                                 Representations, Warranties and Covenants.  The representations and warranties of the other Party in this Agreement shall be true and accurate as of the date hereof, and shall be true and accurate as of the Payment Date and have the same force and effect as if they were made on the Payment Date; the covenants and agreements contained in this Agreement which shall be performed by the other Party on or prior to the Payment Date shall have been performed;

 

(b)                                 No Certain Governmental Orders.  No Governmental Authority has enacted, issued, promulgated, implemented or adopted any Law or Governmental Order that will render illegal or restrain or prohibit the transactions contemplated hereunder;

 

(c)                                  No Legal Proceedings or Actions.  No Action has occurred or may occur against any Party, which might restrain the transactions contemplated hereunder, materially alter the terms of the transactions contemplated hereunder or is likely to render it impossible or unlawful to consummate such transactions;

 

(d)                                 Approval and Consent.  The Exchange shall have issued its confirmation of consent to this Transfer in accordance with this Agreement and the supplementary agreements, if any, entered into by the Parties in respect of this Transfer;

 

6

 

(e)                                  Filing with the Ministry of Commerce.  The Target Company shall have completed its filing of investor information with respect of this Transfer on the Unified  Platform of the Administrative System of the Ministry of Commerce; and

 

(f)                                   Share Transfer Notice.  The Parties shall have submitted to CSDCC all application materials necessary for the registration of transfer of the Target Shares and received CSDCC’s written notice stating that such application materials satisfy the requirements of CSDCC and the share transfer can proceed.

 

The Transferors shall, within three (3) Working Days after all conditions set forth above are satisfied (except those which shall be satisfied on the Payment Date pursuant to their terms), deliver a written notice to the Transferee, notifying the Transferee that such conditions have been satisfied.

 

SECTION 3.03                                   Shareholders’ Rights

 

(a)                                 The Transferors undertake that from the date hereof to the Transfer Registration Date, subject to  the applicable Laws and regulations, the Transferors shall seek the opinions from and reach a consensus with the Transferee in connection with the matters to be considered at the shareholders’ general meeting of the Target Company.

 

(b)                                 From the Transfer Registration Date, the Transferee shall be entitled to all rights, interests and profits in respect of the Target Shares available to a shareholder of the Target Company.

 

ARTICLE IV   REPRESENTATIONS AND WARRANTIES OF THE TRANSFERORS

 

Each of the Transferors hereby represents and warrants to the Transferee as follows:

 

SECTION 4.01                                   Organization and Authority

 

It is a corporation duly organized, validly existing and in good standing under the Laws of the jurisdiction of its incorporation and has all requisite power, authority and authorization and full legal capacity to enter into this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereunder.  The execution and delivery by it of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated hereunder have been duly authorized by all requisite corporate action on the part of it.  This Agreement has been duly executed and delivered by it, and (assuming due authorization, execution and delivery by the Transferee) this Agreement constitutes its legal, valid and binding obligations, enforceable against it in accordance with its terms.

 

SECTION 4.02                                   No Conflict

 

The execution, delivery and performance by it of this Agreement will not (a) violate, conflict with or result in the breach of any provision of its articles of association or other constitutional documents, or (b) violate or conflict with any applicable Law or Governmental Order, or (c) conflict with or violate any contract or instrument to which it is a party or by which any of its assets is bound or affected, including, without limitation, any sale restriction covenant made by it to regulatory authorities and/or public investors.

 

7

 

SECTION 4.03                                   Consents and Approvals

 

Except for the Governmental Approvals listed in Section 3.02 hereof, no Governmental Approval or consent, permit or authorization of other third party Persons (including creditors) is required on the part of it in connection with the execution, delivery and performance of this Agreement and the completion of this Transfer, and it has obtained all necessary internal approvals.

 

SECTION 4.04                                   Target Shares

 

It is the legal and beneficial owner of the Target Shares.  The Target Shares are tradable shares without restrictions on the sale thereof and are non-assessable, free and clear of any encumbrance or any third party right (including right of first refusal); to the knowledge of the Transferors, there are no outstanding litigation, arbitration, other disputes, judicial freezing or other restrictions on rights thereof.

 

ARTICLE V   REPRESENTATIONS AND WARRANTIES OF THE TRANSFEREE

 

The Transferee hereby represents and warrants to the Transferors as follows:

 

SECTION 5.01                                   Organization and Authority

 

It is a limited liability company duly organized, validly existing and in good standing under the Laws of the PRC and has all requisite power, authority and authorization and full legal capacity to enter into this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereunder.  The execution and delivery by it of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated hereunder have been duly authorized by all requisite internal approvals on the part of it.  This Agreement has been duly executed and delivered by it, and (assuming due authorization, execution and delivery by the Transferors) this Agreement constitutes its legal, valid and binding obligations, enforceable against it in accordance with its terms.

 

SECTION 5.02                                   No Conflict

 

The execution, delivery and performance by it of this Agreement will not (a) violate, conflict with or result in the breach of any provision of its articles of association or other constitutional documents, (b) violate or conflict with any applicable Law or Governmental Order, or (c) conflict with or violate any contract or instrument to which it is a party or by which any of its assets is bound or affected.

 

SECTION 5.03                                   Consents and Approvals

 

Except for the Governmental Approvals listed in Section 3.02 hereof, no Governmental Approval or consent, permit or authorization of other third party Persons (including creditors) is required on the part of it in connection with the execution, delivery and performance of this Agreement and the completion of this Transfer, and it has obtained all necessary internal approvals.

 

8

 

SECTION 5.04                                   Financial Capacity and Performance Capacity

 

As of the Payment Date, the Transferee has sufficient and legal source of funds to enable it to accept the transfer of the Target Shares in accordance with the terms and conditions of this Agreement and fully pay the Share Transfer Price in a timely manner in accordance with this Agreement.

 

ARTICLE VI  COVENANTS

 

SECTION 6.01                                   Notice of Developments

 

Each Party shall promptly notify the other Party in writing of (a) any and all events, circumstances and facts which could result in any breach of any of its representations, warranties or covenants hereunder or which could have the effect of making any of its representations or warranties hereunder untrue or inaccurate in any respect, and (b) any fact, change, condition and circumstance which is known to it and which will or could reasonably be expected to render it impossible to satisfy any condition set forth in Section 3.02 hereof.

 

SECTION 6.02                                   Confidentiality

 

(a)                                 Unless otherwise agreed in writing by the Parties, each Party shall not and shall cause its respective Affiliates and Representatives not to directly or indirectly disclose or permit the disclosure of (i) the existence or contents of this Agreement, this Transfer and the transactions contemplated hereunder, (ii) any terms, conditions or other respects of this Agreement, this Transfer and the transactions contemplated hereunder, or (iii) the negotiations of this Agreement, this Transfer and the transactions contemplated hereunder (the “Confidential Information”), except for the information that is or becomes generally available to the public or enters the public domain other than as a result of the information disclosure made by a Party in violation of this Agreement.

 

(b)                                 Notwithstanding the foregoing, each Party may (i) only for the purpose of its own use, disclose the Confidential Information to its employees, officers, directors, partners, agents, accountants, legal counsels, representatives or advisors (the “Representatives”) on an as-needed basis, provided that such Party shall ensure that such Representatives are aware of and undertake the same confidentiality obligation; (ii) pursuant to the provisions of applicable Laws or applicable stock exchange rules, disclose to any relevant Governmental Authority or stock exchange the Confidential Information required to be disclosed by applicable Laws; and (iii) to the extent reasonable and necessary for any Party to comply with applicable Tax Law, as required by applicable Laws or Governmental Authority, such Party may disclose the information relating to the transactions contemplated hereunder, provided that in the case of (iii), the disclosing Party shall (to the extent permitted by applicable Laws), within a reasonable time limit prior to the disclosure, discuss with the other Parties and use its commercially reasonable efforts to obtain confidential treatment of the disclosed information.

 

9

 

SECTION 6.03                                   Further Action

 

Each of the Parties shall use all reasonable efforts to take, or cause to be taken, all necessary and appropriate actions, do or cause to be done all things necessary, proper or advisable under applicable Laws, and to execute and deliver such documents and other papers, as may be required to perform the provisions of this Agreement and consummate the transactions contemplated hereunder.

 

ARTICLE VII   INDEMNIFICATION

 

SECTION 7.01                                   Liability for Indemnification

 

(a)                               If a Party (the “Breaching Party”) commits a breach of any of its representations, statements, warranties, covenants, agreements or obligations hereunder, the Breaching Party shall indemnify the other Party (the “Non-breaching Party”) from and against all losses, damages, costs and expenses, interest and penalties (including reasonable attorneys’ fee and consulting fees) suffered or incurred by the Non-breaching Party due to such breach and the liability of the Parties for indemnification hereunder shall be limited to the Share Transfer Price.

 

SECTION 7.02                                   Other Remedies

 

The Parties agree that the indemnification as provided for in Section 7.01 shall not be the sole remedy available to the Non-breaching Party in the case of any breach by the Breaching Party of its representations and warranties hereunder or any failure by the Breaching Party to perform and comply with any of its covenants and agreements hereunder.  If the Breaching Party fails to duly perform or violates any provisions of this Agreement, the Non-breaching Party may seek any other rights or any other remedies available under this Agreement and the Laws of the PRC applicable to this Agreement.

 

ARTICLE VIII   EFFECTIVENESS AND TERMINATION

 

SECTION 8.01                                   Effectiveness

 

This Agreement shall be formed and become effective upon due execution by the authorized representatives of the Parties.

 

SECTION 8.02                                   Termination

 

This Agreement may be terminated at any time prior to the Payment Date as follows:

 

(a)         by the Non-breaching Party if, between the date hereof and the Payment Date: (i) an event or circumstance occurs that has or could reasonably be expected to have resulted in a material adverse effect or renders it impossible to fulfill any condition set forth in Section 3.02, (ii) any representations and warranties of any Party contained herein shall not have been true or correct in any material respect or such Party materially violates any covenants or agreements contained herein, or (iii) the Transferors or the Transferee makes a general assignment for the benefit of creditors, or any legal proceeding shall be instituted by or against the Transferors or the Transferee seeking to declare entry into bankruptcy proceedings by the Transferors or the Transferee, or the Transferors or the Transferee as bankrupt or insolvent, or seeking liquidation, winding up, reorganization or restructuring of their or its debts under any Law relating to bankruptcy, insolvency or reorganization, and any of the foregoing shall not have been cured or removed within fifteen (15) Working Days after a written notice is given by the Non-breaching Party;

 

10

 

(b)         by any Party if this Transfer shall not have been completed within six (6) months from the date hereof (or any period extended by the Parties through mutual agreement); provided that the right to terminate this Agreement under this Section 8.02(b) shall not be available to any Party whose failure to materially perform any of its obligations hereunder shall have been the cause of, or shall have resulted in, the failure of this Transfer to be completed on or prior to such date;

 

(c)          by any Party in the event that any competent Governmental Authority or stock exchange shall have issued an order, decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated hereunder and such order, decree, ruling or other action shall have become final and non-appealable;

 

(d)         by the Transferors if the conditions for payment of the Share Transfer Price shall have been satisfied but the Transferee shall not have paid the Share Transfer Price within thirty (30) days from the date on which such conditions are satisfied; or

 

(e)          by the mutual written consents of the Parties.

 

SECTION 8.03                                   Survival

 

In the event of termination of this Agreement as provided for in Section 8.02, this Agreement shall forthwith become void and there shall be no liability on the part of any Party (unless otherwise provided for herein), provided that (a) Section 6.02, Article VII, Section 8.02, this Section 8.03 and Article IX hereof shall survive the termination of this Agreement, and (b) nothing herein shall relieve any Party from liability for any breach of this Agreement prior to the termination of this Agreement.

 

ARTICLE IX   MISCELLANEOUS

 

SECTION 9.01                                   Expenses

 

All fees, costs and expenses, including, without limitation, fees of legal counsels and financial advisors, incurred in connection with the preparation, execution and performance of this Agreement and this Transfer shall be paid by the Party incurring such fees, costs and expenses.

 

SECTION 9.02                                   Taxes

 

(a)         Each Party shall bear and pay all the Taxes imposed on it pursuant to all applicable Laws airing out of or in connection with the execution and performance of this Agreement and implementation of the transactions contemplated hereunder.

 

11

 

(b)         Within twenty (20) Working Days after the Payment Date, the Transferors shall, or shall engage one of the Big Four international certified public accounting firms as their Tax advisor to, file Tax returns under applicable Laws to competent Tax authorities of the PRC in connection with income tax, value-added tax and relevant surcharges and stamp duty, if necessary, payable by the Transferors under this Transfer and shall truthfully disclose information to competent Tax authorities of the PRC.  After the payment of such income tax, value-added tax and relevant surcharges and stamp duty, if necessary, payable by the Transferors under this Transfer, the Transferors shall provide the Transferee with Tax collection decisions issued by competent Tax authorities, tax computation forms, tax returns and the Transferors’ Tax payment receipts and any other tax clearance certificates.

 

SECTION 9.03                                   Assignment

 

This Agreement shall be binding upon and inure to the benefit of successors and assigns of the Parties.  Neither Party may assign this Agreement without the prior written consent of the other Party.

 

SECTION 9.04                                   Entire Agreement

 

This Agreement and other documents delivered hereunder constitute the entire agreement and understanding of the Parties with respect to the subject matter hereof and supersede all prior agreements and covenants, both written and oral, among the Parties with respect to such subject matter.

 

SECTION 9.05                                   Severability

 

If any term or other provision of this Agreement is invalid, illegal or unenforceable by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or legal substance of the transactions contemplated hereunder is not affected in any manner materially adverse to any Party.  Upon such determination that any term or other provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereunder are consummated as originally contemplated to the greatest extent possible.

 

SECTION 9.06                                   Waiver

 

Any Party may (a) extend the time for the performance of any of the obligations or other acts of the other Party, (b) waive the liability of the other Party for any inaccuracies in the representations and warranties contained herein or in any document delivered by the other Party pursuant hereto, or (c) waive the compliance with any of the agreements or the performance of such Party’s obligations contained herein as condition precedent.  Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the Parties to be bound thereby.  Any waiver of any term or condition hereof shall not be construed as a waiver of any subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this Agreement.  The failure of any Party hereto to assert any of its rights hereunder shall not constitute a waiver of any of such rights.  All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

12

 

SECTION 9.07                                   Amendment

 

This Agreement may not be amended or modified except (a) by an instrument in writing signed or sealed by the Parties or their authorized representatives, or (b) by a waiver in accordance with Section 9.06.

 

SECTION 9.08                                   No Third Party Beneficiaries

 

This Agreement shall be binding upon and inure solely to the benefit of the Parties and their respective successors and permitted assigns.

 

SECTION 9.09                                   Notices

 

All notices required or permitted under this Agreement shall be made in writing and deemed to have been effectively delivered:

 

(a)                               upon delivery to the Party to which a notice is given hereunder if personally delivered;

 

(b)                               upon receipt of facsimile confirmation if sent by facsimile with confirmation of transmission during normal business hours of the recipient or on the second (2nd) Working Day if not sent during normal business hours of the recipient;

 

(c)                                three (3) days after the delivery to a courier service if delivered by courier; or

 

(d)                               upon transmission of an email to the server of the Party to which a notice is given hereunder if sent by email.

 

All communications shall be sent to the following addresses (or other address as a Party may have specified in a ten (10)-day written notice given to the other Parties).

 

If to the Transferors:

 

Power Star

 

Attention: ZHANG Liyang

Address: 40/F, HKRI Centre One, 288 Shimen First Road, Jing’an District, Shanghai

Telephone: 

Email: 

 

Glossy City

 

Attention: YANG Shuo

Address: Room 3809, 38/F, Bund Finance Centre S1, 600 Zhongshan East Second Road, Huangpu District, Shanghai

Telephone: 

Email: 

 

13

 

If to the Transferee:

Attention: General Counsel of Legal Department

Address: 5/F, Building 3, 969 Wenyi West Road, Yuhang District, Hangzhou, Zhejiang Province

Telephone: 

Email: 

 

All notices or communications sent by the Transferors to the Transferee shall be deemed to have been approved by the Transferee in writing if not replied by the Transferee within two (2) Working Days from the delivery thereof.  If any Party is required to change the email box designated by it, it shall give a notice of change to the email boxes designated by the other Parties two (2) Working Days in advance.

 

SECTION 9.010                            Counterparts

 

This Agreement may be executed and delivered in seven counterparts.  Each of the Transferors and the Transferee shall keep one (1) copy, while the remaining copies shall be retained by the Transferors for completion of governmental formalities.  Each counterpart shall be an original and have the same effect.

 

SECTION 9.011                            Governing Law and Dispute Resolution

 

(a)                                 This Agreement shall be governed by, and construed in accordance with, the Laws of the PRC.

 

(b)                                 Any dispute arising out of the execution of, or in connection with, this Agreement (“Dispute”) shall be resolved through friendly consultation among the Parties.  The claiming Party shall promptly notify the other Party in a dated notice that a Dispute has arisen and describe the nature of the Dispute.  If the Dispute cannot be resolved through consultation within thirty (30) days after the date of such notice of Dispute, any Party may submit the Dispute to the China International Economic and Trade Arbitration Commission (“CIETAC”) for arbitration in Beijing in accordance with its arbitration rules then in effect.  The arbitration tribunal shall consist of three (3) arbitrators.  Each of the claimant and the respondent shall appoint one (1) arbitrator.  The third arbitrator shall act as the presiding arbitrator and shall be appointed by the chairman of CIETAC.  The arbitral award shall be final and binding upon the Parties.

 

SECTION 9.012                            Language

 

This Agreement is written in Chinese.

 

[Signature Pages to Follow]

 

14

 

(Signature Page to the Share Transfer Agreement Regarding the Transfer of 5.28% Shares of Focus Media Information Technology Co., Ltd.)

 

	
 
    	
Power Star Holdings (Hong Kong) Limited
    
	
 
    	
 
    
	
 
    	
/s/ LI Junhao
    
	
 
    	
 
    
	
 
    	
Signature by Authorized Representative:
    
	
 
    	
Name: LI Junhao
    

 

Signature Page to Share Transfer Agreement

 

 

(Signature Page to the Share Transfer Agreement Regarding the Transfer of 5.28% Shares of Focus Media Information Technology Co., Ltd.)

 

	
 
    	
Glossy City (HK) Limited
    
	
 
    	
 
    
	
 
    	
/s/ PAN Donghui
    
	
 
    	
 
    
	
 
    	
Signature by   Authorized Representative:
    
	
 
    	
Name: PAN Donghui
    

 

Signature Page to Share Transfer Agreement

 

 

(Signature Page to the Share Transfer Agreement Regarding the Transfer of 5.28% Shares of Focus Media Information Technology Co., Ltd.)

 

	
 
    	
Alibaba (China)   Technology Co., Ltd.
    
	
 
    	
 
    
	
 
    	
(Company Seal)
    
	
 
    	
 
    
	
 
    	
/s/ DAI Shan
    
	
 
    	
 
    
	
 
    	
Signature by   Legal Representative:
    
	
 
    	
Name: DAI Shan
    

 

Signature Page to Share Transfer Agreement

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