Document:

Warrant

 Exhibit 4.1 
 NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN THE SUBJECT OF REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE, AND THE SAME HAVE BEEN (OR WILL BE, WITH
RESPECT TO THE SECURITIES ISSUABLE UPON EXERCISE HEREOF) ISSUED IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD, TRANSFERRED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT AS PERMITTED UNDER SUCH SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. 
 THE
WARRANT EVIDENCED BY THIS CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN THE WARRANT PURCHASE AGREEMENT, DATED AS OF JUNE 9, 2005, COPIES OF WHICH ARE ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF THE ISSUER. NO
REGISTRATION OF TRANSFER OF THIS WARRANT WILL BE MADE ON THE BOOKS OF THE ISSUER UNLESS AND UNTIL SUCH RESTRICTIONS SHALL HAVE BEEN COMPLIED WITH. 
 EXELIXIS, INC. 
 WARRANT TO PURCHASE COMMON STOCK 
 June 13, 2006 
 Void After
June 13, 2011 
 THIS CERTIFIES THAT, for value received,
SYMPHONY EVOLUTION HOLDINGS LLC, a Delaware limited liability company, with its principal office at 7361 Calhoun Place, Suite 325, Rockville, MD 20850, or its assigns (the “Holder”), is
entitled to subscribe for and purchase at the Exercise Price (as defined below) from EXELIXIS, INC., a Delaware corporation, with its principal office at 170 Harbor Way, P.O. Box 511, South San Francisco, CA
94083 (the “Company”), up to Seven Hundred Fifty Thousand (750,000) shares of Common Stock, par value $0.001 per share, of the Company (the “Common Stock”). 
 This Warrant is being issued pursuant to the terms of the Warrant Purchase Agreement, dated as of June 9, 2005, between the Company and Holder (the
“Warrant Purchase Agreement”). 
 1. DEFINITIONS. As used herein, the following terms shall have the
following respective meanings: 
 (a) “Exercise Period” shall mean the period commencing on the date hereof
and ending on June 13, 2011. 
  

 1. 

 (b) “Exercise Price” shall mean $8.90 per share, subject to adjustment
pursuant to Section 4 below. 
 (c) “Exercise Shares” shall mean the shares of Common Stock issuable
upon exercise of this Warrant, subject to adjustment pursuant to the terms herein, including but not limited to adjustment pursuant to Section 4 below. 
 2. EXERCISE OF WARRANT.  
 2.1
Generally. The rights represented by this Warrant may be exercised in whole or in part at any time during the Exercise Period, by delivery of the following to the Company at its address set forth above (or at such other address as it may
designate pursuant to Section 12 hereof): 
 (a) an executed Notice of Exercise in the form attached hereto;

 (b) payment of the Exercise Price of the shares thereby subscribed for by wire transfer or cashier’s check
drawn on a United States bank to the Company, or by means of a cashless exercise pursuant to Section 2.2; and 
 (c) this Warrant. 
 Upon the exercise of the rights represented by this Warrant, a certificate or
certificates for the Exercise Shares so purchased, registered in the name of the Holder or persons affiliated with the Holder, if the Holder so designates, shall be issued and delivered to the Holder as soon as practicable, but in no event longer
than 30 days, after the rights represented by this Warrant shall have been so exercised. The Company shall, upon request of the Holder, if available and if allowed under applicable securities laws, use its commercially reasonable efforts to deliver
any certificate or certificates required to be delivered by the Company under this section electronically through the Depository Trust Corporation or another established clearing corporation performing similar functions. If this Warrant shall have
been exercised in part, the Company shall, at the time of delivery of the certificate or certificates representing Exercise Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Exercise Shares called
for by this Warrant, which new Warrant shall in all other respects be identical to this Warrant. 
 The person in whose name
any certificate or certificates for Exercise Shares are to be issued upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant was surrendered and payment of the Exercise Price
and all taxes required to be paid by the Holder, if any, was made, irrespective of the date of delivery of such certificate or certificates, except that, if the date of such surrender and payment is a date when the stock transfer books of the
Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open. 
 2.2 Cashless Exercise. Notwithstanding any provisions herein to the contrary, if the fair market value of one share of
Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant by payment 

  

 2. 

 
of cash, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being exercised) by
surrender of this Warrant together with the properly endorsed Notice of Exercise, in which event the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula: 
  

							
	 X
	 	 =
	 	 Y (A-B)
	 	
		 	 	A	 	

  

					
	 Where X
	  	=	  	the number of shares of Common Stock to be issued to the Holder

					
			
	 Y
	  	=	  	the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the date of such
calculation)
			
	 A
	  	=	  	the fair market value of one share of Common Stock (at the date of such calculation)
			
	 B
	  	=	  	Exercise Price (as adjusted to the date of such calculation)

 For purposes of the above calculation, the fair market value of one share of Common
Stock shall equal the average closing price of the Common Stock, as reported in the Wall Street Journal, on the NASDAQ National Market, or other national exchange that is then the primary exchange on which the Common Stock is listed (the
“the Principal Market”), for the 30 trading days immediately preceding the second trading day prior to the date on which the Holder delivers to the Company an executed Notice of Exercise in the form attached hereto. If the Common Stock is
not quoted on the NASDAQ National Market, or listed on another national exchange, the fair market value of one share of Common Stock shall be determined by the Company’s Board of Directors in good faith. 
 2.3 Legend. All certificates evidencing the shares to be issued to the Holder may bear the following legends: 
 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE
SECURITIES LAWS OF ANY STATE, AND THE SAME HAVE BEEN ISSUED IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. SUCH SHARES MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT AS
PERMITTED UNDER SUCH SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.” 
 “THE SHARES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN THE WARRANT PURCHASE AGREEMENT, DATED AS OF JUNE 9, 2005, COPIES OF WHICH ARE ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF THE ISSUER. NO REGISTRATION OF TRANSFER
OF THESE SHARES WILL BE MADE ON THE BOOKS OF THE ISSUER UNLESS AND UNTIL SUCH RESTRICTIONS SHALL HAVE BEEN COMPLIED WITH.” 
  

 3. 

 2.4 Charges, Taxes and Expenses. Issuance of certificates for Exercise
Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be
issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Exercise Shares are to be issued in a name other than the name of the Holder, this
Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto. 
 3. COVENANTS OF THE COMPANY. 
 3.1 No Impairment. Except and to the extent as waived or consented to by the Holder, the Company will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may be necessary or appropriate in order to protect the exercise rights of the Holder against impairment. 
 3.2 Notices of Record Date. If at any time: 
 (a) the Company shall take a record of the holders of Common Stock for the purpose of entitling them to receive a dividend or other
distribution, or any right to subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or any other securities or property, or to receive any other right (other than with respect to any equity or equity
equivalent security issued pursuant to a rights plan adopted by the Company’s Board of Directors); 
 (b) there shall be
any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any consolidation or merger of the Company, or any sale, transfer or other disposition of all or substantially all the
property, assets or business of the Company; or 
 (c) there shall be a voluntary or involuntary dissolution, liquidation or
winding up of the Company; 
 then, in any one or more of such cases, the Company shall give to Holder (i) at least 10 days’ prior written notice
of the date on which a record date shall be selected for such dividend, distribution or right or for determining rights to vote in respect of any such reorganization, reclassification, recapitalization, consolidation, merger, sale, transfer,
disposition, dissolution, liquidation or winding up and (ii) in the case of any such reorganization, reclassification, recapitalization, consolidation, merger, sale, transfer, disposition, dissolution, liquidation or winding up, at least 10
days’ prior written notice of the date on which the same shall take place. Such notice in accordance with the foregoing clause also shall specify the date on which the holders of Common Stock shall be entitled to any such dividend, distribution
or right, and the amount and character thereof. 
 4. ADJUSTMENT OF EXERCISE
PRICE. In the event of changes in the outstanding Common Stock by reason of stock dividends, split-ups, recapitalizations, reclassifications, 

  

 4. 

 
combinations or exchanges of shares, separations, reorganizations, liquidations or the like, the number and class of shares available under this Warrant in
the aggregate and the Exercise Price shall be correspondingly adjusted to give the Holder of this Warrant, on exercise for the same aggregate Exercise Price, the total number, class and kind of shares as the Holder would have owned had the Warrant
been exercised prior to the event and had the Holder continued to hold such shares until after the event requiring adjustment. The form of this Warrant need not be changed because of any adjustment in the number of Exercise Shares subject to this
Warrant. 
 5. FRACTIONAL SHARES. No fractional shares shall be issued upon the exercise of this
Warrant, including as a consequence of any adjustment pursuant hereto. If the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such
fraction a sum in cash equal to the product resulting from multiplying the then current fair market value of an Exercise Share (determined as provided in Section 2.2 hereof) by such fraction; provided, however, that the Company may elect in its
sole discretion to issue the next higher number of full shares of Common Stock by issuing a full share with respect to such fractional share. 
 6. CORPORATE TRANSACTIONS. In case the Company shall reorganize its capital, reclassify its capital stock, consolidate or merge with or into another corporation (where the Company is not the
surviving corporation or where there is a change in or distribution with respect to the Common Stock), or sell, transfer or otherwise dispose of all or substantially all its property, assets or business and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of assets, shares of common stock of the successor or acquiring corporation, or any cash, shares of stock or other securities or property of any nature whatsoever (including
warrants or other subscription or purchase rights) in addition to or in lieu of common stock of the successor or acquiring corporation (“Other Property”), are to be received by or distributed to the holders of the Common Stock, then the
Holder shall have the right thereafter to receive, upon exercise of this Warrant, the number of shares of common stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and Other Property receivable
upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a Holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event. For purposes of
this Section 6, “common stock of the successor or acquiring corporation” shall include stock of such corporation of any class which is not preferred as to dividends or assets over any other class of stock of such corporation and which
is not subject to redemption and shall also include any evidences of indebtedness, shares of stock or other securities which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for or purchase any such stock. The foregoing provisions of this Section 6 shall similarly apply to successive reorganizations, reclassifications, mergers,
consolidations or disposition of assets. 
 7. NOTICE OF ADJUSTMENT. Whenever the
number of Exercise Shares or number or kind of securities or other property purchasable upon the exercise of this Warrant or the Exercise Price is adjusted, as herein provided, the Company shall give notice thereof to the Holder at the address of
such Holder appearing on the books of the Company, which notice shall state the number of Exercise Shares (and other securities or property) purchasable upon the exercise of this Warrant and the Exercise Price of such Exercise Shares (and other
securities or 

  

 5. 

 
property) after such adjustment, setting forth a brief statement of the facts requiring such adjustment and setting forth the computation by which such
adjustment was made. 
 8. ORDERLY SALE. This Warrant and the Exercise Shares are subject to the
provisions of Section 6.05 of the Warrant Purchase Agreement. 
 9. NO STOCKHOLDER
RIGHTS. This Warrant does not entitle the Holder to any voting rights or other rights as a stockholder of the Company prior to the exercise hereof. Upon the exercise of this Warrant in accordance with Section 2, the Exercise
Shares so purchased shall be and be deemed to be issued to such Holder as the record owner of such shares as of the close of business on the date of such exercise. 
 10. TRANSFER OF WARRANT. Subject to applicable laws, the restriction on transfer set forth on the first page of this Warrant and the provisions of Article VI
of the Warrant Purchase Agreement, this Warrant and all rights hereunder are transferable by the Holder, in person or by duly authorized attorney, upon delivery of this Warrant, the Assignment Form attached hereto and funds sufficient to pay any
transfer taxes payable upon the making of such transfer, to any transferee designated by Holder. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. A
Warrant, if properly assigned, may be exercised by a new holder for the purchase of Exercise Shares without having a new Warrant issued. The Company may require, as a condition of allowing a transfer (i) that the Holder or transferee of this
Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that such transfer may be made without
registration under the Securities Act and under applicable state securities or blue sky laws, (ii) that the holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the Company,
(iii) that the transferee be an “accredited investor” as defined in Rule 501(a) promulgated under the Securities Act and (iv) the transferee agree in writing to be bound by the terms of this Warrant and the Warrant Purchase
Agreement as if an original signatory thereto. 
 11. LOST, STOLEN, MUTILATED
OR DESTROYED WARRANT. If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a
mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. 
 12. NOTICES, ETC. Any notice, request, demand, waiver, consent, approval or other communication that is required or permitted to be given hereto shall be in writing and
shall be deemed given only if delivered to the applicable party personally or sent to the party by facsimile transmission (promptly followed by a hard-copy delivered in accordance with this Section 12), by next business day delivery by a
nationally recognized courier service, or by registered or certified mail (return receipt requested), with postage and registration or certification fees thereon prepaid, addressed to the party at its address set forth in the Warrant Purchase

  

 6. 

 
Agreement, or at such other address as the Company or Holder may designate by ten (10) days advance written notice to the other party hereto.

 13. ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of
the terms and conditions contained herein. 
 14. GOVERNING LAW. This Warrant and all rights,
obligations and liabilities hereunder shall be governed by the laws of the State of New York. 
 15. SATURDAYS,
SUNDAYS, HOLIDAYS, ETC. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or a legal
holiday, then such action may be taken or such right may be exercised on the next succeeding day not a Saturday, Sunday or legal holiday. 
 16. AMENDMENT. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder. 
 17. SUCCESSORS AND ASSIGNS. Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Holder. 
 18. HEADINGS. The headings used in this Warrant are for the convenience of reference only and shall not, for
any purpose, be deemed a part of this Warrant. 
  

 7. 

 IN WITNESS WHEREOF, the Company has
caused this Warrant to be executed by its duly authorized officer as of June 13, 2006. 
  

			
	EXELIXIS, INC.
		
	By:	 	 /s/ Christoph A. Pereira

	 Name:
	 	 Christoph A. Pereira

	 Title:
	 	 Vice President, Legal Affairs and Secretary

  

 8. 

 NOTICE OF EXERCISE 
 TO: EXELIXIS, INC. 
 (1)  ̈ The undersigned hereby elects to purchase                     
shares of Common Stock of EXELIXIS, INC. (the “Company”) pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all applicable transfer
taxes, if any. 
  ̈ The undersigned
hereby elects to purchase                      shares of Common Stock of EXELIXIS, INC. (the
“Company”) pursuant to the terms of the net exercise provisions set forth in Section 2.2 of the attached Warrant, and shall tender payment of all applicable transfer taxes, if any. 
 (2) Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is
specified below: 
  

 (Name) 
  

  

 (Address) 
 (i) (3)
The undersigned represents that: 
 (A) It is an “accredited investor” within the meaning of Rule 501(a) of
Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”). 
 (B) It has relied
completely on the advice of, or has consulted with or has had the opportunity to consult with, its own personal tax, investment, legal or other advisors and has not relied on the Company or any of its affiliates for advice. 
 (C) It has been advised and understands that the offer and sale of the attached Warrant and the shares of Common Stock issued upon
exercise of the Warrant (the “Warrant Shares”) have not been registered under the Securities Act. It is able to bear the economic risk of such investment for an indefinite period and to afford a complete loss thereof. 
 (D) It is acquiring the Warrant Shares solely for its own account for investment purposes as a principal and not with a view to the resale
of all or any part thereof. It agrees that the Warrant Shares may not be resold (1) without registration thereof under the Securities Act (unless an exemption from such registration is available), or (2) in violation of any law. It
acknowledges that the Company is not required to register the 

  

 9. 

 
Warrant Shares under the Securities Act. It is not and will not be an underwriter within the meaning of Section 2(11) of the Securities Act with respect
to the Warrant Shares. 
 (E) No person or entity acting on behalf of, or under the authority of, the undersigned is or will
be entitled to any broker’s, finder’s, or similar fees or commission payable by the Company or any of its affiliates. 
  

					
			
	   	 		 	   
	 (Date)
	 		 	 (Signature)

			
	 	 		 	   
		 		 	 (Print name)

  

 10. 

 ASSIGNMENT FORM 
 (To assign the foregoing Warrant, execute 
 this form and supply required information. 
 Do not use this form to purchase shares.) 
 FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to 
  

			
	 Name:
	 	  
		 	(Please Print)
		
	 Address:
	 	  
		 	(Please Print)

  

			
	 Dated:
                    , 2      

		
	 Holder’s
 Signature:
	 	  
		
	 Holder’s
 Address:
	 	  

 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the
Warrant, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant. 
  

 11.Equity Transfer Agreement dated December 30, 2005

 Exhibit 4.13 
 EQUITY TRANSFER AGREEMENT 
 This Equity Transfer Agreement (this “Agreement”) is entered into by the
following parties on December 30, 2005 in Beijing, the People’s Republic of China (“PRC”). 
 Party A:
Zhang Yi 
 Address: 
 ID card No.: 
 Party B: Shang Aiqin 
 Address: 
 ID card No.: 
 (Party A and Party B are collectively referred to as the “Transferees”) 
 Party C: Wang Jiang 
 Address: Suite 201-202, Xietu East Road, Huangpu District, Shanghai, PRC 
 ID card No.:
610113197301177612 
 Party D: Xu Hongyan 
 Address: No. 27, Jiabin Road, Shenzhen, Guangdong, PRC 
 ID card No.:110108690911004 
 Party E: Xie Peifu 
 Address: Suite 202, No. 13, Lane 888, Jinxiu Road, Pudong New
District, Shanghai, PRC 
 ID card No.:430425197306202977 
 Party F: He Ming 
 Address: Suite 203, Building 211, Jindi Garden, Futian District, Shenzhen, Guangdong, PRC 
 ID card
No.:110108721201893 
 Party G: Chen Yixiao 
 Address: No. 423, Tianjin Road, Huangpu District, Shanghai, PRC 
 ID card No.:110108730323605 
 (Party C,
Party D, Party E, Party F and Party G are collectively referred to as the “Transferors”, and together with the “Transferees”, the “Parties”) 
 Whereas, 
 1. Shanghai Magma Digital Technology Co., Ltd. (“Shanghai Magma”) is a limited
liability company duly incorporated and existing under the PRC laws, with a registered capital of RMB10 million, in which, Party C contributed RMB2.63 million, representing a 26.3% equity interest in Shanghai Magma; Party D contributed RMB2.35
million, representing a 23.5% equity interest in Shanghai Magma; Party E contributed RMB2.26 million, representing a 22.6% equity interest in Shanghai Magma; Party F contributed RMB2.16 million, representing a 21.6% equity interest in Shanghai
Magma; and Party G contributed RMB600,000, representing a 6% equity interest in Shanghai Magma. As of the execution date of this Agreement, the Transferors lawfully enjoy all rights of shareholders based on their capital contributions to Shanghai
Magma. 
  

 1 

 2. Party A and Party B are citizens of PRC with full civil capacity. Now the Transferees wish to accept
the transfer of 100% equity interest in Shanghai Magma currently held by the Transferors. 
 3. The Transferors wish to assign and transfer
their 100% equity interest in Shanghai Magma to the Transferees, among which, 50% equity interest held by Party C and Party D shall be transferred to Party A, and another 50% equity interest held by Party E, Party F and Party G. shall be transferred
to Party B. Upon closing of the equity transfer, Party A and Party B shall each own a 50% interest in Shanghai Magma. 
 4. Party C, Party D,
Party E, Party F and Party G unanimously agree to severally and jointly assume obligations and liabilities under this Agreement; and agree that the performance of obligations by Party A and/or Party B hereunder to any of Party C, Party D, Party E,
Party F and Party G shall be deemed a performance to all the Transferors hereunder. 
 In connection with the above-mentioned equity
transfer, the Parties hereby enter into the following agreement through friendly consultation in accordance with the applicable laws and regulations, and in the spirit of equality and mutual benefit and in good faith. 
 Article 1 Equity Transfer 
 1. The Transferors hereby
agree to transfer, pursuant to the terms and conditions hereunder, all of their 100% equity interest in Shanghai Magma to the each of the Transferees according to the proportion agreed hereunder on the Effective Date of Transfer (defined below)
described in Article 3, and each of the Transferees hereby agrees to accept such transfer according to the proportion agreed hereunder and pursuant to the terms and conditions hereunder (the “Equity Transfer”). 
 2. From the Effective Date of Transfer under Article 3 hereof, the Transferees shall become the lawful owner of the transferred equity interest pursuant
to the terms and conditions hereunder, enjoy and bear all the rights and obligations in connection with the transferred equity interest (including all the rights, interests and obligations relating to its investment); the Transferors shall cease to
enjoy any rights, or bear any obligations, in connection with the transferred equity interest, except as otherwise provided hereunder. 
 3.
As from the Equity Transfer Effective Date, capital contributions of various shareholders in the registered capital of Shanghai Magma shall be: 
 Party A: RMB 5 million, representing 50% of the registered capital; and 
 Party B: RMB 5 million, representing 50% of the
registered capital; 
 4. The Parties agree to handle all the procedures for the Equity Transfer in accordance with the provisions and timing
agreed hereunder, including without limitation obtaining shareholders and directors resolutions of each Party approving the Equity Transfer and letters of undertaking issued by each of the Transferors as a shareholder of Shanghai Magma authorizing
the transfer of equity held by other parties of the Transferors and waiver of the pre-emptive right thereto. 
  

 2 

 5. As from the Equity Transfer Effective Date, the Transferors shall transfer any and all materials in
their possession that are necessary for the Transferees to reasonably exercise their rights as shareholders of Shanghai Magma, including without limitation the resolutions and minutes of shareholders’ meetings and board of directors meetings,
all seals and chops (including without limitation the company seal, financial seal and contract seal), certificate of approval, business license (original and duplicates), approvals, certificates, check books, materials regarding any bank accounts
and any changed thereto, and documents and approvals as to property ownership, of Shanghai Magma. 
 Article 2 Consideration and Method of Payment

 1. The consideration for this Equity Transfer shall be RMB10 million, which shall be paid within 10 business days upon Closing Date of
the Equity Transfer (as defined below). 
 Article 3 Execution Date and Equity Transfer Effective Date 
 1. This Agreement shall take effect on the day when it is executed by the Parties or their authorized representatives (the “Execution Date”).

 2. The Equity Transfer hereunder shall take effect on the day when all of the following conditions are satisfied (or waived in writing by
the parties concerned), and such day shall be the “Equity Transfer Effective Date”. After the Equity Transfer Effective Date, the Parties shall separately determine the specific financial benchmark date on which the formal financial
handover shall commence. 
 (1) This Agreement is duly executed by the Parties or their duly authorized representatives; 
 (2) This Agreement and the Equity Transfer hereunder is approved by the shareholders’ meeting of Shanghai Magma; 
 (3) Each of the Transferors issues a letter of undertaking, promising to waive any pre-emptive rights to the equity interest to be transferred in the
possession of other parties of the Transferors; 
 (4) All instruments necessary for this Equity Transfer are duly acquired and all relevant
formalities and procedures are duly performed in line with the applicable laws of the PRC; 
 (5) No significant negative change has occurred
as to the business, operation, property, prospects and assets of Shanghai Magma. 
 (6) All statements, representations and warranties made
by the Transferors hereunder are true and correct as of the Execution Date and Equity Transfer Effective Date, as if they were made on those dates (except for those made on a specific date in which case they need to be true and correct as at such
specified date); and 
  

 3 

 (7) Registration of changes at the competent industrial and commercial authorities shall have been
completed and therefore the Transferees have become the shareholders of Shanghai Magma. Specific requirements are set forth in Article 4 hereof. 
 3. Satisfaction (or waiver by the parties concerned) of all the following conditions shall be the precondition for completion of Equity Transfer hereunder (“Preconditions”): 
 (1) The registration of changes stated in Article 2.7 hereof shall have been completed; 
 (2) Deregistration of Shanghai Magma Technology Co., Ltd. established upon the investment from Shanghai Magma shall have been completed; or the equity
interest held by Shanghai Magma in above company shall have been transferred to the Transferees or their designees; 
 (3) Party C, Party E,
Party G and Party F shall have signed the service agreement set forth in Exhibit 4 and according to such service agreement, Party C, Party E, Party G and Party F shall provide services to Shanghai Magma for no less than three years. 
 (4) The Transferors shall have executed the non-competition agreement set forth in Exhibit 5, whereby the Transferors shall not engage in any business or
activity in any form that is or might be competiting with the existing business of Shanghai Magma; and 
 (5) The Exclusive Technical
Consultancy and Service Agreement, Software License Agreement, Trademark License Agreement and Business Operation Cooperation Agreement, and all other agreements (if any) entered into by the Transferors directly on its own or indirectly through its
affiliates with Shanghai Magma shall have terminated. 
 4. Either the Transferors or the Transferees shall promptly, but in no event later
than the third business day after they have learned that any of the above Preconditions has been satisfied, notify the other party of such satisfaction and provide written evidence thereof (such as photocopies of relevant approvals or filed
documents). 
 5. In the event that all Preconditions are satisfied in the opinion of either Party, then such Party shall send a written
notice to the other Parties. Within two (2) business days upon receipt of the notice, the other party shall acknowledge in writing to the notifying party that all the Preconditions have been satisfied (such acknowledgement shall not be
unreasonably withheld), or assert in writing that any Precondition is yet to be satisfied and the basis of such assertion. The date on which both Parties agree that all Preconditions have been satisfied shall be the closing date of the Equity
Transfer (“Closing Date”). 
 6. In the event that all the Preconditions listed above are not satisfied as a whole by the end of
one month upon execution hereof, then this Agreement shall be terminated immediately, unless both Parties agree to defer the deadline to a later date 
  

 4 

 in writing, but in no event later than the end of three months upon execution hereof. In the event that the registration
has been completed as to the Equity Transfer at the industrial and commercial authority upon termination hereof, then the Transferees shall immediately re-transfer the equity interest actually transferred hereunder to the Transferors, to bring both
Parties back to the original status prior to the execution hereof. 
 7. The Transferors agree that, if any of the Preconditions set forth in
Article 3.3 hereof has failed to be satisfied in the specified time limit or has not been waived by the relevant parties in writing, the Equity Transfer shall be deemed not completed, and the Transferees shall not assume any liability in connection
therewith, unless the failure was due to a fault of the Transferees. If the failure was due to a fault of the Transferors, the Transferors shall indemnify the Transferees for all of its consequent loss or expenses; if the failure was due to a fault
of the Transferees, the Transferees shall indemnify the Transferors for all of its consequent loss or expenses. 
 Article 4 Registration of Alterations
at Industrial and Commercial Authority 
 1. Within 30 business days upon receipt of all the materials provided by the Transferees that
are necessary for registration of changes as to the Equity Transfer at industrial and commercial authority, the Transferors shall complete relevant procedures for the registration at the industrial and commercial authority with the assistance from
the Transferees. Items subject to such registration are as follow: 
 (1) Upon completion of the registration of the equity transfer, the
Transferees shall be the registered shareholders of Shanghai Magma; 
 (2) Registration of changes of directors and dissolution of the
original board of directors of Shanghai Magma. After the change and prior to January 1, 2008, the new board of directors shall consist of five directors, among whom two directors shall be nominated by the Transferors, provided such directors
shall abide by applicable laws, regulations and listing rules. In addition, the Parties agree that after the transfer and prior to January 1, 2008, the board of directors shall adopt resolutions as to the following issues by unanimous approval
of all directors: (1) foreign investment affairs of Shanghai Magma; (2) rescission or termination of the service agreement set firth in Exhibit 4, provided that consent of simply majority of the directors will be sufficient under the
circumstances specified in Article 6 of the service agreement; 
 (3) Upon the completion of the registration of change of the legal
representative, Wang Jiang shall replace Xu Xunguang as legal representative; 
 (4) Upon the completion of the registration of change of
supervisors, Pan Hong shall replace Xu Hongyan as supervisor; 
 (5) The office of general manager of the company shall be retained by Wang
Jiang, and the board of directors of the company shall adopt the Authorization Letter for General Manager set forth in Exhibit 1; and 
 (6)
Registration of corresponding amendments to the articles of association of the company. 
  

 5 

 2. The Transferors shall be responsible for filing the registration of above changes. Upon receipt of the
notice of registration completion sent by the industrial and commercial authority, the Transferors shall promptly notify the Transferees in writing, and the Transferees shall receive all registration documents within three business days upon receipt
of such notice. Registration of all the items referred to in this Article shall be deemed duly completed when the Transferees have received all such documents. 
 Article 5 Representations, Warranties and Covenants of the Transferors 
 Except as described in the Letter of Disclosure set
forth in Exhibit 2 hereto, the Transferors make the following representations, warranties and covenants: 
 1. The Transferors are citizens of
the PRC with full civil capacity under the PRC laws. 
 2. The Transferors have full authority to proceed with the issues in relation to the
Equity Transfer, and have acquired all approvals and/or authorizations necessary for the execution and performance of this Agreement. 
 3.
Execution and performance of this Agreement by the Transferors will not contravene applicable laws or any legal document such as any articles of association, contracts or agreements that are binding upon the Transferors. 
 Further representations, warranties and covenants made by the Transferors are set forth in Exhibit 1 hereto. 
 Article 6 Representations, Warranties and Covenants of the Transferees 
 Except for what have been disclosed, the Transferees make the following representations and warranties and covenants 
 1. The Transferees are PRC citizens with full civil capacity. 
 2. The Transferees have the full rights to
carry out the activities in connection with the equity transfer hereunder, and have obtained all the approval and/or authorization necessary for the execution and performance of this Agreement. 
 3. The execution and performance of this Agreement by the Transferees do not contravene any law, articles of association, contract, agreement or other
legal documents binding on the Transferees. 
 4. The Transferees shall perform their obligations of paying the Equity Transfer Price to the
Transferors in strict compliance with the provisions hereof. 
 Article 7 Financial Management 
 As from the Execution Date, the Transferors and the Transferees agree: 
 1. The Transferees or a designee thereof (for the purpose of this article, they will collectively be referred to as “ Transferees’) shall have the right to assign a financial officer to Shanghai Magma, to
perform the function of daily financial management and implementation of financial management regulations developed by the Transferees, as from the Equity Transfer Closing Date; 
  

 6 

 2. Shanghai Magma shall open a bank account at the bank designated by the Transferees for the receipt and
payment of fund, which shall be managed by the Transferees. The Transferors shall have the right to defray ordinary expenses from such account, provided that any amount greater than RMB 150,000 can not be disbursed without the consent of the
Transferees, provided further, that the above limit can be adjusted based on the actual condition of business expenditures; 
 3. Shanghai
Magma shall provide the Transferees with detailed budget every five months (including the expected revenue, costs and expenses for such period), which shall be prepared on a monthly basis and include breakdowns. The Transferees shall advance
relevant costs and expenses as per such budget after reviewing and approving the same; 
 4. Daily costs and expenditures shall be paid by
Shanghai Magma within the limit set forth in the detailed budget upon approval by the Transferees, and the expenses beyond the scope of the quarterly budgets shall be subject to prior notice to and written approval by the Transferees; 
 5. In the last week of March, June, September and December each year, Shanghai Magma shall submit to the Transferees the overall budget for the
subsequent quarter prepared on a monthly basis and including breakdowns (including expected revenue, costs and expenses), provided the total amount of costs and expenses under the budget shall not exceed the actual revenue of the previous quarter;
relevant operating capital will be allocated at the beginning of applicable quarter upon approval of the budget by the Transferees. In the event that express approval of the Transferees is not available yet by the deadline for the allocation of the
operating capital, then the budget approved by the board of directors of Shanghai Magma shall apply. 
 6. Shanghai Magma shall submit to the
Transferees financial statements prepared in accordance with PRC accounting standards and US GAAP respectively and conduct an analysis of such statements in a form specified by the Transferees, at the end of each month and each quarter in a
timely manner (i.e. within [8] days after the end of applicable month/quarter). 
 7. Shanghai Magma shall install an Oracle financial
accounting system in relevant computers, conduct relevant staff training and arrange technical people to fulfill implementation and system activation. 
 8. With respect to authorizations and approvals required under the subsection 2, 3, 4 and 5 above, the Transferees shall not unreasonably withhold or delay its authorizations/approvals. 
 Article 8 Confidentiality 
 Without the written
approval of the other Parties, neither Party shall disclose the relevant content of this Agreement to any third parties other than the Parties hereto (not including the affiliates of the Parties and the professionals engaged by the Parties)

  

 7 

 prior to the Closing Date hereunder, except as explicitly required under the relevant PRC laws and regulations, relevant
articles of association, or other applicable PRC laws and regulations. 
 Article 9 Expenses 
 1. Each Party agrees to bear their respective expenses incurred in connection with the legal counsel, accountant, evaluator, financial adviser and other
professionals engaged by such Party. 
 2. The Transferors and the Transferees shall each be responsible for their respective taxes incurred
in the equity transfer hereunder according to law. 
 3. All the other relevant fees and expenses, including without limitation fees for
filing the registration of changes with the industrial and commercial authority, shall be borne by Shanghai Magma. 
 Article 10 Issues not Mentioned and
Amendment 
 1. All the Parties agree to engage in further negotiations on issues not mentioned herein, and enter into supplemental
agreement in writing, after the execution of this Agreement. The supplemental agreement shall constitute an integral part of this Agreement. 
 2. Any amendment to this Agreement shall be in writing and signed by the Parties hereto. The revisions and additions shall constitute an integral part hereof. 
 Article 11 Liabilities for Breach 
 1. A Party hereto shall constitute a breach of this Agreement if
such Party: 
 (1) fails to perform any obligations hereunder; 
 (2) violates any representations, warranties and covenants hereunder; 
 (3) makes any false or misleading
representations and warranties hereunder (either in good faith or bad faith). 
 Article 12 Dispute Resolution 
 1. Any dispute arising from or in connection with this Agreement shall be resolved by the Parties through amicable consultation. 
 2. If the Parties cannot resolve the dispute through amicable consultation within sixty (60) days after the occurrence thereof, such dispute shall
be submitted for arbitration at the China International Economic and Trade Arbitration Commission according to its then effective arbitration rules. The arbitration award shall be final and binding upon the Parties. The location of arbitration shall
be in Beijing. 
 3. If any provision hereof shall be held invalid under applicable laws, such invalidity shall not have any impact on the
validity and enforceability of the remaining provisions of this Agreement. 
  

 8 

 Article 13 Governing Laws 
 The formation, validity, interpretation, performance and dispute resolution of this Agreement shall be governed by the PRC laws. 
 Article 14 Contractual Rights 
 Neither Party shall assign its rights hereunder without the prior written consent of the
other Party. This Agreement shall be binding and inure to the benefit of the successors and approved assignees of the Parties hereto. 
 Article 15 Force
Majeure 
 1. For the purpose of this Agreement, “force majeure” event refers to any event beyond the reasonable control of the
Parties that can not be predicted (or can be predicted but cannot be avoided) by the Parties hereto, which event has caused failure of any Party hereto to perform any or all terms and conditions of this Agreement, including without limitation
natural disasters such as earthquake, typhoon, flood, fire and other natural disasters, war, riot, strike or any other similar incidents. The Parties hereto acknowledge and agree, the non-performance by either Party of this Agreement due to force
majeure event shall not constitute a breach in subsection 1 of Article 11 hereof, and the Party affected shall not be liable for any compensation or indemnity thereto. 
 2. The Party affected by the force majeure event shall immediately notify the other Party of the occurrence of force majeure event via the most rapid means of communication available, and provide the other Party with
documents specifying the details of the event and the reason for the non-performance, partial non-performance for delay of performance of this Agreement, and the Parties shall negotiate whether to postpone the performance of this Agreement or
terminate this Agreement. 
 Article 16 Entire Agreement 
 This Agreement constitutes the entire representations and agreement between the Parties and supersede any oral or written representations, warranties, understandings and agreements concerning the subject matter hereof
between the Parties prior to the execution hereof. The Parties acknowledge and agree, any representations or warranties not explicitly included herein shall not constitute the basis of this Agreement, nor constitute the basis for the determination
of the rights and obligations of the Parties and the construction of the terms and conditions hereof. 
 Article 17 Notice 
 Any notice hereunder shall be in written form, in Chinese language, and delivered via registered mail, fax or other electronic means of communication. A
notice shall be deemed to be duly given when it is delivered to the registered address of the receiving Party. If the notice is sent by registered mail, it shall be deemed to have been duly given on the date shown on the receipt thereof. If the
notice is transmitted by facsimile, it shall be deemed to have been duly given on the date of receipt of the transmission confirmed by receipt of a transmittal confirmation. 
  

 9 

 Transferees: 
 Address: 
 Zip Code: 
 Tel.: 
 Fax: 
 Attention: 
 Transferors: 
 Address: 
 Zip Code: 
 Tel.: 
 Fax: 
 Attention: 
 Article 18 Language 
 This Agreement shall be written in Chinese language in eight (8) originals, with each Party holding one (1) original thereof, the remaining shall be filed for approval and the industrial and commercial
registration, each of which shall have equal legal validity. 
 Article 19 Supplemental Agreement or Exhibits 
 The supplements or revisions to this Agreement agreed upon and duly executed by the Parties shall be attached as the Exhibits hereto, constituting an
integral part hereof. 
  

 10 

 SIGNATURE PAGE 
 In Witness Whereof, the Parties have executed this Agreement on the date first shown above. 
 Party A: Zhang Yi 

Party B: Shang Aiqin 
 Party C: Wang Jiang 
 Party D: Xu Hongyan 
 Party E: Xie Peifu 
 Party G: He Ming 
 Party F: Chen Yixiao 
  

 11 

 Exhibit 1: Further Representations, Warranties and 
 Covenants of the Transferors 
  

	I.	Warranties as to the Transferors 

  

	1.	Natural Person 

  

	 	(1)	The Transferors are citizens of PRC with full civil capacity under the PRC laws. 

  

	 	(2)	The Transferors have full authority to proceed with issues in relation to the Equity Transfer hereunder. 

  

	 	(3)	The Transferors have acquired all the approvals and/or authorizations necessary for the execution and performance of this Agreement. 

  

	 	(4)	The Transferors are fully capable of performing the obligations hereunder. 

  

	 	(5)	All documents and materials provided by the Transferors to the Transferees and the approving authorities hereunder are true, correct and effective. 

  

	2.	No Conflict 

  

	 	(1)	Execution of this Agreement does not contravene with any material contract or agreement to which the Transferors is a party or which is binding upon the Transferors or any of their
property. 

  

	 	(2)	The Transferors are not involved in any pending or prospective legal proceedings, suits, arbitration or administrative proceedings, or other proceedings or orders, injunctions,
judgments or awards of any government or court. 

  

	3.	Target Equity Interest 

  

	 	(1)	The Transferors are the sole owner of the target equity interest, and such equity interest represents 100% of the registered capital of Shanghai Magma. 

  

	 	(2)	Holding of the target equity interest by the Transferors does not contravene with any legislation, statute or any other regulations. 

  

	 	(3)	The target equity interest is free from any pledge, guarantee, lien or other security or any other restriction affecting the target equity; and there exists no agreement or
undertaking providing above restrictions, nor is there any one who has claimed that he/she has the right to exercise any right in relation to above restrictions. 

  

	4.	Authenticity of Information 

  

	 	(1)	Information provided by the Transferors to the Transferees in relation to Shanghai Magma is true and correct in all material aspects. 

  

 12 

	5.	Miscellaneous 

  

	 	(1)	To the knowledge of the Transferors, the Transferors shall not perform or assume any obligation or undertaking to Shanghai Magma except as the owner of target equity interest.

  

	II.	Warranties as to Shanghai Magma 

  

	1.	Compliance with Laws 

  

	 	(1)	Shanghai Magma is a limited liability company duly incorporated and existing under PRC laws; the Transferors have made capital contributions to Shanghai Magma in full and in time as
per their shareholding proportions and have lawfully acquired the corresponding rights as shareholders; and the Transferors have performed all of their obligations as shareholders in strict compliance with the articles of association of Shanghai
Magma. 

  

	 	(2)	Shanghai Magma has complied in all material aspects with all the applicable laws and procedures and any other regulations in relation to Shanghai Magma, as from the incorporation
date of the company. 

  

	 	(3)	Shanghai Magma owns all the licenses, permits and approvals necessary for carrying out its current business in the PRC. 

  

	 	(4)	As from the date of incorporation, Shanghai Magma has complied with all the laws and regulations governing Shanghai Magma and its operation, and has not incurred any penalty imposed
by any government authority or other competent authority or entity (including without limitation telecom operators, partners, etc.). 

  

	2.	Accounts 

  

	 	(1)	Accounts of Shanghai Magma: 

  

	 	(A)	Comply with the requirements of PRC laws and all other applicable regulations and rules; 

  

	 	(B)	are prepared in accordance with the accounting standards generally accepted in PRC with respect to audits and standards generally adopted by companies engaging in business similar
to that of Shanghai Magma; and 

  

	 	(C)	are free from the negative influence of any irregular, special and unrepeated matters not disclosed therein. 

  

	 	(2)	Shanghai Magma owns all assets stated or contained in the accounts without any restriction, and all of such assets are proprietary and under the control of Shanghai Magma.

  

 13 

	 	(3)	Materials and information provided by the Transferors to the Transferees, such as balance sheets, are complete, true and correct. Except for liabilities (including existing and
contingent liabilities) and business documents (see Exhibit 2: Letter of Disclosure) that have been disclosed to the Transferees by the Transferors, Shanghai Magma does not have any other liabilities (“Undisclosed Liabilities”). If any
Undisclosed Liabilities exist, the Transferors shall be fully liable for repayment of such liabilities. In the event of any loss to the Transferees or Shanghai Magma resulting from the Undisclosed Liabilities, the Transferors shall indemnify the
loss in full amount. 

  

	3.	Post-Execution Events 

  

	 	(1)	Except the prior written consent of the Transferees has been acquired, the Transferors warrant that, as from the Execution Date till the Equity Transfer Closing Date

  

	 	(A)	it will use its best efforts to ensure that operation of Shanghai Magma be free from any negative influence; 

  

	 	(B)	Shanghai Magma will remain in normal operation, and will not suspend or change in terms of ownership, business scope and operating means. The Transferors will send a notice to the
Transferees to seek approval therefrom three days prior to disbursement of any expenditure at or higher than RMB50, 000; 

  

	 	(C)	it will not appoint, engage, terminate, replace or dismiss any director, officer or other key employees without prior written consent of the Transferees; 

 

	 	(D)	No significant change (including without limitation the assignment or creation of any encumbrance or third parties’ rights) as to financial condition, status or prospect and
the value and structure of assets or liabilities of Shanghai Magma will take place, and there exists no damage or loss to the assets of Shanghai Magma (whether insured or not) which will lead to any negative change to or in Shanghai Magma or its
condition (financial or otherwise). 

  

	 	(E)	Shanghai Magma regularly and continually repays debts to its creditors; 

  

	 	(F)	Shanghai Magma will not be obligated to undertake any accelerated repayment of any outstanding loan; 

  

	 	(G)	Shanghai Magma will not change its equity structure and articles of association, nor will it distribute its investment proceeds to the Transferors; 

  

	 	(H)	Unless as required in the ordinary course of business on a case-by-case basis, Shanghai Magma will not purchase, sell, assign or dispose of any assets of any nature, or release,
waive or compromise any credits or claim; and 

  

 14 

	 	(I)	Except for the liabilities disclosed in the audited financial statement as of the Execution Date and the existing liabilities incurred in the ordinary course of business as from the
benchmark date, Shanghai Magma will not pay off or perform any lien or encumbrance or any other (absolute or contingent )obligation or liability. 

  

	4.	Contracts and Covenants and Financial and Other Arrangements 

  

	 	(1)	Shanghai Magma does not have any outstanding: 

  

	 	(A)	agreement by which Shanghai Magma shall assume any actual or contingent obligations or liabilities (generated by way of security, indemnification, warranty, representation or by
other means) under one of following circumstances, except those agreements arising in normal and proper daily operation which have been disclosed in the accounts and that the Transferees (including its directors, officers, employees and agents)
should have known as of the Execution Date: 

  

	 	1)	With respect to any disposal by Shanghai Magma of its property or business or any part thereof; or 

  

	 	2)	With respect to obligations of any other people. 

  

	 	(B)	contracts to which Shanghai Magma is a party, which is on a long term basis and of a non-trade nature, or contain any prospective or existing undisclosed obligations or liabilities,
and it is reasonably expected that disclosure of such contract will affect the decision of purchasers as to value of any or all of the target equity. 

  

	 	(C)	material (contractual or non-contractual) arrangement between Shanghai Magma and any other party, which will be terminated or have undergone significant and negative change as a
result of the sale of target equity or enforcement of any other provision hereof; and 

  

	 	(D)	any contract which will substantially restrict Shanghai Magma from freely carrying out the existing business. 

  

	 	(2)	No interest, security right or third party’s right of any kind have been created or established, or to be created or established as permitted or promised by Shanghai Magma, on
any property of Shanghai Magma. 

  

	5.	Intangible Assets 

  

	 	(1)	Intangible Assets such as trademarks (registered or pending the 

  

 15 

 application thereof), domain names and software products listed in Exhibit 3 are property of Shanghai
Magma, which owns all the title and intellectual property rights thereto, free of any restriction from any third party, and no interest, security right or third party’s right of any kind have been created or established, or to be created or
established as permitted or promised by Shanghai Magma, on any of above intangible assets. 
  

	6.	Litigation 

  

	 	(1)	As from its incorporation, Shanghai Magma is not involved in any substantial litigation or arbitration, or any administrative, criminal or other proceedings, and there exists no
pending litigation or arbitration, or any administrative, criminal or other proceedings instituted against Shanghai Magma. 

  

	7.	Breaching Acts 

  

	 	(1)	As from its incorporation, Shanghai Magma has not committed any substantial crime or offense, or any behavior in violation of the law, without due authorization, or failed to comply
with any law, contract or other binding obligations, nor shall it be liable for any such behaviors. 

  

	8.	Taxes 

  

	 	(1)	Shanghai Magma has provided or caused others to provide all information with respect to taxes (including in Shanghai or in any other place of PRC) as required by tax authorities.

  

	III.	Special Warranties As to Material Breach 

 The following special warranties
made by the Transferors are key and vital to the Transferees and the transaction hereunder, and any breach thereof shall be deemed a material breach of this Agreement by the Transferors: 
  

	 	(1)	The Transferors understand and acknowledge, the Transferees will execute this Agreement in reliance on representations, covenants and warranties made by the Transferors herein,
notwithstanding that the Transferees or any of its directors, officers, employees, agents or consultants might have made relevant investigations and that each of above parties might have obtained important information as to Shanghai Magma.

  

	 	(2)	The Transferors warrant that Shanghai Magma is duly qualified to operate its main business within its existing business scope and owns a valid Multi-Area Value-Added Telecom
Business Operation License which allows it to carry out Java and WAP business nationwide; above license has been duly acquired and is valid; the Transferors will not unilaterally take any action that would impair Shanghai Magma’s existing
business eligibility or any part thereof. 

  

	 	(3)	The Transferors warrant that they explicitly understand that the 

  

 16 

 purpose of the Transferees for executing this Agreement is to carry out Java and WAP business nationwide.
The Transferors warrant that they will perform this Agreement in good faith and in all aspects to cause such purpose to be achieved. The Transferors warrant that, prior to handover of the company, they will promptly notify the Transferees of any
event coming to their attention that might affect the contract purpose (including without limitation to changes in policies of operators and any event occurred in the process of preparation and filing, which is unpredictable at the time of execution
hereof, etc.), and consult with the Transferees in good faith to work out countermeasures. 
  

	 	(4)	As of the Execution Date, Shanghai Magma does not have any outstanding contract, agreement or binding document other than the contracts, agreements and documents that have been
disclosed by the Transferors to the Transferees in attachments hereto (see Exhibit 2: Letter of Disclosure). 

  

	 	(5)	Shanghai Magma has not violated any material aspect of laws relating to taxes, employees, insurance and property; has never suffered any administrative penalties or penalties
imposed by mobile operators, and will not be subject to such penalties in the future due as a result of any action to date; and there does not exist any actual or threatened lawsuit. 

  

	 	(6)	The Transferors covenant that in the service period, it will behave in strict compliance with fundamental business ethnics, and will not cause irregular growth of its revenue by
deception, fraud, malicious self-dealing, etc. Any part of the revenue earned in such ways will not be included in the actual benchmark profit. The Parties further agree, in the event that the revenue of Shanghai Magma in a quarter has grown by over
200%, then the Transferees shall have the right to determine in its discretion whether such growth beyond 200% was resulted from any of the activities aforesaid, and the Transferees shall not be subject to the burden of proof with respect thereto.

  

	 	(7)	The Transferors shall be responsible for submitting a request for replacement of shareholders of Shanghai Magma to the Ministry of Information Industry (“MII”), and shall
ensure that approval for such request by the MII will be obtained no later than June 1, 2006. The Transferees agree to provide full assistance and relevant materials and information in this process. 

  

	 	(8)	The Cooperative Agreement regarding WAP between Shanghai Magma and China Mobile Communications Corporation shall have been executed by March 31, 2006, and the original copy
thereof shall be delivered to the board of directors of Shanghai Magma. 

  

	IV.	Other Warranties 

  

	 	(1)	There does not exist any material misstatement or any omission in any representations or warranties of the Transferors. The Transferors 

  

 17 

 shall indemnify, defend and hold harmless the Transferees against any and all the liabilities,
obligations, loss, damages, penalty, punishment, compensation, claim, law suit, fees, expenses and costs (including without limitation attorney fee and other legal costs) of whatever type, nature and category (collectively, the “Losses”)
suffered or incurred by the Transferees as a result of any falseness, inaccuracy or incompleteness of any representations or warranties of the Transferors, or arising from or in connection with any representations or warranties or claims (regardless
of whether such Losses were due to the action or omission of the Transferees). 
  

	 	(2)	Party C, Party D, Party E, Party F and Party G unanimously agree to assume several and joint obligations and liabilities hereunder; and agree further, the performance by Party A
and/or Party B of the obligations hereunder to any of Party C, Party D, Party E, Party F and Party G shall be deemed a performance to all of the Transferors. 

  

 18 

 Exhibit 2: Letter of Disclosure 
 List of Business Documents 
  

 19 

 Exhibit 3: Intangible Assets 
 At present Shanghai Magma holds the following intangible assets: 
 1. Trademark 
  

							
	 Trademark Name
	  	 Registrant/Applicants
	  	Category Identified	  	 Code and Duration

	 Yanjiang Digital (in colored Chinese characters)
	  	 Shanghai Magma
	  	Class 9	  	Application Number: 4373459 applied on 2004.11.22
				
	 Magma Digital M (graphics)
	  	 Shanghai Magma
	  	Class 9	  	Application Number: 4373460 applied on 2004.11.22
				
	 PP Piggy
	  	 Shanghai Magma
	  	Class 9	  	No.3668164 2005.3.14-2015.3.13
				
	 YY Cat
	  	 Shanghai Magma
	  	Class 9	  	No.3668165 2005.3.14-2015.3.13

 Notes: Items under Class 9 shall include: computer programs (downloadable software); computer game software;
electronic publications (downloadable); TV game cards; integrated circuit cards; computer software (recorded); magnetic data medium; compact disc; recorded computer programs; and recorded computer operating programs (end of items). 
 2. Domain Names 
  

							
	 Domain Name
	  	Registrant	  	Duration	  	Remarks
	 Magma—Digital.com
	  	Shanghai Magma	  	2001.10.1-2008.10.1	  	
	 Magma-land.com
	  	Shanghai Magma	  	2004.2.12-2006.2.12	  	

 3. Software Products 
  

							
	 Software Name
	  	Right Holder	  	Duration	  	Remarks
	 M—Box Software
	  	Company	  	2002.8.10-2007.8.10	  	

  

 20 

 Exhibit 4: Service Agreement 
  

 21 

 Exhibit 5: Non-competition Agreement 
  

 22 

 Schedule 1: Authorization Letter for General Manager 
  

 23

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