Document:

ex4-72.htm

    
      Execution
        Version

       

      Exhibit
        4.72

       

       

       

      SHARE
        PURCHASE AND SUBSCRIPTION AGREEMENT

       

       

      by
        and among

       

      Ixworth
        Enterprises Limited

       

      Beijing
        Ninetowns Network and Software Co., Ltd.

       

      Mr.
        Fan Hui Yang

       

      Zhi
        Sheng Limited

       

      Ample
        Spring Holdings Limited

       

      BeijingBaichuan
        Tongda Science and
        Technology Development Co., Ltd.

       

      and

       

      Mr.
        Zhou Peiji and Mr. Zhou Lijun

       

       

       

      April
        9, 2007

       

       

       

      

    
      SHARE
        PURCHASE AND SUBSCRIPTION AGREEMENT

      This
        SHARE PURCHASE AND SUBSCRIPTION AGREEMENT (this
“Agreement”) is entered
        into on April 9, 2007 by and among the following parties:

      A.         Ixworth
        Enterprises Limited, a British
        Virgin Islands company (the “Purchaser”);

       

      B.          Beijing
        Ninetowns Network and Software Co., Ltd., a wholly foreign-owned enterprise established
        under the laws of the PRC
        (the “WFOE”);

       

      
        	
                 

              	
                C.

              	
                Mr.
                  Fan Hui Yang (“Mr.
                  Fan”);

              

      

       

      
        	
                 

              	
                D.

              	
                Zhi
                  Sheng Limited, a British Virgin
                  Islands company (“Zhi
                  Sheng”);

              

      

       

      E.           Ample
        Spring Holdings Limited, a British
        Virgin Islands company (the “Company”);

       

      F.            BeijingBaichuan
        Tongda Science and
        Technology Development Co., Ltd.,a limited liability
        company formed under the laws of the PRC
        (“Baichuan”);
        and

       

      G.           Mr.Zhou
        Peiji and Mr.Zhou
        Lijun (each a “Baichuan
        Principal” and collectively, the
“Baichuan
        Principals”).

       

      RECITALS

      WHEREAS,
        Mr. Fan is the sole shareholder of
        Zhi Sheng and Zhi Sheng owns the entire issued share capital of the
        Company.

      WHEREAS,
        the Baichuan Principals
        collectively own all the equity interests in Baichuan.

      WHEREAS,
        to further develop and expand the
        Purchaser’s business in the PRC, the Purchaser desires to ensure that certain
        cooperation and service agreements are entered into by and among the WFOE,
        Baichuan and the Baichuan Principals, as applicable.

      WHEREAS,
        subject to the terms and conditions
        hereof, the Purchaser desires to acquire from Zhi Sheng thirty-five (35)
        issued
        and outstanding ordinary shares of the Company and to subscribe for thirty-five
        (35) new ordinary shares to be issued by the Company, in order for the Purchaser
        to hold seventy percent (70%) of the Company’s fully-diluted share capital, and
        Zhi Sheng desires to sell, and the Company desires to allot and issue such
        ordinary shares to the Purchaser.

       

      

    
      AGREEMENT

      NOW,
        THEREFORE, in consideration of the
        mutual promises, covenants and conditions hereinafter set forth, the parties
        hereto agree as follows:

      ARTICLE
        1

      DEFINITIONS.

      1.1          Certain
        Defined Terms. As used in this Agreement,
        the following terms shall have the following respective meanings:

      “Action”
shall
        mean any action, suit, proceeding, claim, arbitration or
        investigation.

      “Affiliate”
        shall mean, with respect to any given Person, a Person that Controls, is
        Controlled by, or is under common Control with the given Person, whereas
        “Control” means, when
        used with respect to any Person, the power to direct the management and policies
        of such Person, directly or indirectly, whether through the ownership of
        Equity
        Rights, by contract or otherwise, and the terms “Controlling” and “Controlled”
have
        meanings correlative to the
        foregoing.

      “Board”
shall
        mean the board of directors of the Company.

      “Business
        Day”
or “business
        day”shall mean any day
        that is not a Saturday, Sunday,
        legal holiday or a day on which banks are required to be closed in the British
        Virgin Islands, Hong Kong or the PRC.

      “Encumbrance”
        shall mean any lien, encumbrance, hypothecation, right of others, proxy,
        voting
        trust, or similar arrangement, pledge, security interest, collateral security
        agreement, mortgage, objection, title defect, title retention agreement,
        option,
        restrictive covenant, restriction on transfer, right of first refusal or
        first
        offer, or any other comparable interest of any nature whatsoever.

      “Environmental
        Claim” shall mean any claim, action, cause of action,
        investigation, or notice
        (written or oral) by any person or entity alleging potential liability arising
        out of, based on, or resulting from: (i) the presence, or release into the
        environment, of any Material of Environmental Concern at any location; or
        (ii)
        circumstances forming the basis of any violation, or alleged violation, of
        any
        Environmental Law.

      “Environmental
        Laws” shall mean all laws and regulations of any
        jurisdiction where a Group
        Company is or has engaged in business activities relating to pollution or
        protection of human health or the environment, or otherwise relating to the
        manufacture, processing, distribution, use, treatment, storage, disposal,
        transport or handling of any Materials of Environmental Concern. 

      “Group
        Companies” shall mean the Company and Baichuan (each
        a “Group Company”), unless
        the text
        specifically indicates otherwise.

       

      2

       

      

    
      “Government
        Authority” shall mean any court, tribunal, arbitrator,
        authority, agency,
        commission, official or other instrumentality, or governmental or
        quasi-governmental entity, or any regional, provincial, county, city or other
        political subdivision or regulatory body of the PRC, Hong Kong or British
        Virgin
        Islands.

      “Hong
        Kong”
shall mean the Hong Kong Special Administrative
        Region.

      “IAS”
shall
        mean
        the International Accounting Standards.

      “
        ICP License”
shall mean the Internet Content Provider
        License issued by the Ministry of
        Information Industry of the PRC.

      “Material
        Adverse Effect” means any change or effect (or aggregation
        of changes and effects) that
        is materially adverse to the business, financial condition, prospects, assets,
        liabilities or operations of any Group Company.

      “Materials
        of Environmental
        Concern” shall mean chemicals, pollutants,
        contaminants, wastes, toxic substances, hazardous substances, petroleum,
        and
        petroleum products.

      “Person”
shall
        mean any corporation, company, partnership, limited liability company, other
        business organization or entity, and any individual.

       

      “PRC”
shall
        mean
        the People’s Republic of China, excluding Hong Kong, the Macau Special
        Administrative Region, and the islands of Taiwan.

       

      “PRC
        GAAP”shall mean the accounting
        principles generally
        accepted in the PRC.

      “Proprietary
        Rights” shall mean any and all patents, patent rights
        and applications therefor
        and all reissues, re-examinations, continuations, continuations-in-part,
        divisions, and patent term extensions thereof, inventions (whether patentable
        or
        not), discoveries, improvements, concepts, innovations, industrial models,
        registered and unregistered copyrights, copyright registrations and
        applications, author’s rights, works of authorship (including artwork of any
        kind and software of all types in whatever medium, inclusive of computer
        programs, source code, object code and executable code, and related
        documentation), URLs, web sites, web pages and any part thereof, technical
        information, know-how, trade secrets, drawings, designs, design protocols,
        specifications for parts and devices, quality assurance and control procedures,
        design tools, manuals, research data concerning historic and current research
        and development efforts, including the results of successful and unsuccessful
        designs, databases and proprietary data, proprietary processes, proprietary
        rights, technology, engineering, discoveries, formulae, algorithms, operational
        procedures, trade names, trade dress, trademarks, domain names, service marks,
        mask works, and registrations and applications therefor, the goodwill of
        the
        business symbolized or represented by the foregoing, customer lists and other
        proprietary information and common law rights.

      “RMB”
shall
        mean
        the lawful currency of the PRC.

       

      3

       

      

    
      “Securities
        Act”
shall mean the U.S. Securities Act of 1933,
        as amended.

      “Shares”
shall
        mean the ordinary shares of the Company, par value US$1.00 per
        share.

      “Shareholders
        Agreement” shall mean the
        shareholders agreement to be entered into among the Company, the Purchaser,
        Mr.
        Fan and Zhi Sheng;

      “Subsidiary”
or
        “subsidiary”shall
        mean, with respect to any subject entity (the
“subject entity”), (i) any company, partnership or other entity (x) more than
        fifty percent (50%) of whose shares or other interests entitled to vote in
        the
        election of directors, or (y) more than a fifty percent (50%) interest in
        the
        profits or capital of such entity, are owned or controlled directly or
        indirectly by the subject entity or through one or more Subsidiaries of the
        subject entity; (ii) any entity whose assets, or portions thereof, are
        consolidated with the net earnings of the subject entity and are recorded
        on the
        books of the subject entity for financial reporting purposes in accordance
        with
        IAS; or (iii) any entity with respect to which the subject entity has the
        power
        to otherwise direct the business and policies of that entity directly or
        indirectly through another subsidiary.

      “Transaction
        Agreements” shall mean this Agreement, the Shareholders
        Agreement and the Baichuan
        Restructure Documents.

      “US$”
shall
        mean
        the lawful currency of the United States of America.

      “Warrantors”
        shall mean the Company, Baichuan, Zhi Sheng, Mr. Fan and the Baichuan
        Principals, unless the text specifically indicates otherwise.

      1.2          Definitions.
        The meanings of the following terms
        are specified in the Sections set forth below:

      
        	
                Definition

              	
                Location

              
	
                Baichuan
                  Principals

              	
                Preamble

              
	
                Baichuan
                  Replacement Shareholders

              	
                Section
                  6.1.11

              
	
                Baichuan
                  Restructure Documents

              	
                Section
                  6.1.12

              
	
                Business
                  Plan

              	
                Section
                  6.1.13

              
	
                Claim

              	
                Section
                  9.2.1

              
	
                Closing

              	
                Section
                  3.1.1

              
	
                Closing
                  Date

              	
                Section
                  3.1.1

              
	
                Damages

              	
                Section
                  9.1

              
	
                Deferred
                  Investment

              	
                Section
                  2.2.4

              
	
                Disclosure
                  Schedules

              	
                Article
                  4

              

      

       

       

      4

       

      

    
       

      
        	
                Definition

              	
                Location

              
	
                Employment
                  Contracts

              	
                Section
                  4.11.1

              
	
                Financial
                  Statements

              	
                Section
                  4.6

              
	
                Governmental
                  Authorizations

              	
                Section
                  4.4.1

              
	
                HKIAC

              	
                Section
                  11.13

              
	
                Holdback
                  Amount

              	
                Section
                  2.2.3

              
	
                Inbound
                  Technology Licenses

              	
                Section
                  4.10.4

              
	
                Indemnified
                  Persons

              	
                Section
                  9.1

              
	
                Knowledge

              	
                Article
                  4

              
	
                New
                  Shares

              	
                Section
                  2.1.2

              
	
                New
                  WFOE

              	
                Section
                  2.2.4

              
	
                Outbound
                  Technology Licenses

              	
                Section
                  4.10.4

              
	
                Public
                  Software

              	
                Section
                  4.10.14

              
	
                Purchase
                  Price

              	
                Section
                  2.2

              
	
                Sale
                  Shares

              	
                Section
                  2.1.1

              
	
                Subscription
                  Price

              	
                Section
                  2.2

              
	
                Technology

              	
                Section
                  4.10.1

              
	
                Technology
                  Agreements

              	
                Section
                  4.10.4

              
	
                Terms

              	
                Section
                  10.1

              

      

       

      1.3          Interpretation.
        Unless the context otherwise
        requires, any noun or pronoun utilized in this Agreement is deemed to include
        the plural as well as the singular and to cover all genders. Unless otherwise
        specified, words such as “herein,” “hereof,” “hereby,” “hereunder” and other
        words of similar import refer to this Agreement as a whole and not to any
        particular clause or sub-clause of this Agreement. References to “Articles,”
“sections” or “provisions” refer to particular Articles, sections or provisions
        of this Agreement. Unless otherwise specified, references to the word
“including” shall be deemed to be followed by words “without limitation,” “but
        not limited to,” or words of similar import as applicable.

      1.4          Warrantor
        Obligations. Where this Agreement or
        any Transaction Agreement places an obligation on any Warrantor, each other
        Warrantor shall use its best efforts to cause the obligated Warrantor to
        perform
        such obligation.

       

      5

       

      

    
      ARTICLE
        2

      AGREEMENT
        TO PURCHASE AND SUBSCRIBE SHARES.

      
        	
                 

              	
                2.1

              	
                Purchase
                  and Subscription of Shares. 
                  Subject to the terms and conditions
                  hereof:

              

      

      2.1.1      Purchase
        of Shares. Zhi Sheng shall sell, transfer, assign, and deliver
        to the Purchaser thirty-five (35) Shares held by Zhi Sheng free and clear
        of all
        Encumbrances, and the Purchaser shall purchase and acquire such thirty-five
        (35)
        Shares from Zhi Sheng at the Closing (the “Sale
        Shares”); and

      2.1.2      Subscription
        of Shares. The Company shall allot and issue, and the
        Purchaser shall subscribe from the Company, thirty-five (35) Shares at the
        Closing (the “New Shares”).

      2.2          Consideration.
        The consideration for the Sale
        Shares shall be RMB105,000,000 (the “Purchase
        Price”). The consideration for the New Shares shall
        be RMB105,000,000 (the “Subscription
        Price”). The parties hereto acknowledge and agree
        that no consideration other than the Purchaser’s payment of the Purchase Price
        and the Subscription Price shall be required in respect of any transaction
        concerning the Company under this Agreement. The Purchase Price and the
        Subscription Price shall be paid as follows: 

      2.2.1      An
        amount equal to RMB85,000,000 shall be paid to Zhi Sheng at the
        Closing (as defined below) in the manner set forth in Section 3.3.1;

      2.2.2      An
        amount equal to RMB2,500,000 shall be paid to the Company at the
        Closing in the manner set forth in Section 3.3.2;

      2.2.3      An
        amount equal to RMB20,000,000 (the “Holdback Amount”) shall be
        retained by the
        Purchaser to secure the indemnification obligations of the Warrantors under
        this
        Agreement. The Holdback Amount shall be released to Zhi Sheng in accordance
        with
        Section 9.3; and

      2.2.4      An
        amount equal to RMB102,500,000 (the “Deferred Investment”) shall be
        paid to the
        Company by the Purchaser at its sole discretion in accordance with capital
        requirement of the Company. The Deferred Investment shall be paid to the
        Company
        in any case no later than one (1) year after the successful establishment
        of a
        wholly foreign-owned enterprise in the PRC (the “New
        WFOE”) by the Company and the execution of an
        exclusive business cooperation agreement between the New WOFE and Baichuan,
        which supersedes the exclusive business cooperation agreement entered into
        among
        the WFOE, Baichuan and the Baichuan Principals prior to the Closing pursuant
        to
        Section 6.1.12 hereto.

      ARTICLE
        3

      CLOSING.

      
        	
                 

              	
                3.1

              	
                Closing. 
                  

              

      

      3.1.1      Subject
        to the satisfaction or waiver of all the conditions in ARTICLE 6
        and ARTICLE 7, the purchase of the Sale Shares and the subscription of the
        New
        Shares (the 

       

      6

       

      

    
      “Closing”)
        shall
        take place simultaneously and remotely through facsimile and other electronic
        transmissions or in such other manner and at such place as may be designated
        by
        the Purchaser, Zhi Sheng and the Company on April 20, 2007 or on such date
        that
        the Purchaser, Zhi Sheng and the Company may agree in writing (the
“Closing Date”).

      3.1.2      Except
        as otherwise specified, Zhi Sheng shall deliver to the Purchaser
        or its counsel the documents and assurances required under ARTICLE 6 on or
        before the Closing Date.

      3.2          Deliveries
        at the Closing. At the Closing, Zhi
        Sheng and the Company shall deliver the following items to the
        Purchaser:

      3.2.1      share
        certificate(s) duly issued to the Purchaser representing an
        aggregate of seventy (70) Shares;

      3.2.2      a
        copy of the Company’s register of members as at the Closing Date and
        giving effect to the transactions contemplated hereby, and a copy of the
        Company’s register of directors as at the Closing Date, both certified by a
        director of the Company to be a true and complete copy thereof;

      3.2.3      a
        certificate dated the Closing Date signed by Mr. Zhou Peiji and Mr.
        Zhou Lijun, certifying that all of the conditions set forth in Section 6.1,
        as
        applicable, have been fulfilled, and attaching and certifying as true and
        complete a copy of the Company’s Memorandum and Articles of Association as in
        effect on the Closing Date;

      3.2.4      a
        compliance certificate dated the Closing Date signed by each of the
        Warrantors certifying that the representations and warranties made by such
        Warrantor as provided in ARTICLE 4 hereof, to the extent applicable, are
        true,
        correct and complete in all material respects on the Closing Date;

      3.2.5      a
        certificate of good standing issued by the Registrar of Corporate
        Affairs of British Virgin Islands dated no more than ten (10) days prior
        to the
        Closing certifying that the Company is on the Register of Companies, has
        paid
        all required fees, annual fees and penalties that are due and payable and
        is not
        in voluntary liquidation;

      3.2.6      a
        legal opinion of the Company’s British Virgin Islands counsel covering,
        among other things, the capitalization of the Company, in form and substance
        satisfactory to the Purchaser and its legal counsel, dated the Closing Date
        and
        addressed to the Purchaser;

      3.2.7      a
        legal opinion of the Company’s PRC counsel covering, among other
        things, the establishment and equity transfer of Baichuan and the validity
        of
        the Baichuan Restructure Documents, in form and substance satisfactory to
        the
        Purchaser and its legal counsel, dated the Closing Date and addressed to
        the
        Purchaser; 

      3.2.8      a
        legal opinion of the Company’s Hong Kong counsel covering, among other
        things, the validity and enforceability of the provisions hereto, in form
        and
        substance satisfactory to the Purchaser and its legal counsel, dated the
        Closing
        Date and addressed to the Purchaser; and

       

      7

       

      

    
      3.2.9      Board
        and members resolutions of the applicable Group Companies approving
        the transactions contemplated herein and the execution of the Transaction
        Agreements by the appropriate Group Company.

      3.3          Proceedings
        at the Closing.    At
        the Closing, against
        simultaneous performance in full by Zhi Sheng and the Company of the obligations
        in Section 3.2,

      3.3.1      The
        Purchaser shall pay the amount required by Section 2.2.1 in U.S.
        Dollars via wire transfer of immediately available funds to one (1) bank
        account, which shall be designated in writing by Zhi Sheng not less than
        five
        (5) Business Days before the Closing; and

      3.3.2      The
        Purchaser shall pay the amount required by Section 2.2.2 in U.S.
        Dollars via wire transfer of immediately available funds to one (1) bank
        account, which shall be designated in writing by the Company not less than
        five
        (5) Business Days before the Closing.

       

      ARTICLE
        4

      REPRESENTATIONS
        AND WARRANTIES OF THE WARRANTORS.

      Unless
        specifically indicated otherwise, the Warrantors hereby jointly
        and severally represent and warrant to the Purchaser that the statements
        in this
        ARTICLE 4, except as set forth in the Disclosure Schedules (the
“Disclosure Schedules”)
        attached to this Agreement as Schedule I (the contents of which
        shall also be deemed to be representations and
        warranties hereunder), are all true, correct and complete on the date hereof
        and
        on the Closing Date. For purposes of this ARTICLE 4, any reference to a party’s
“Knowledge” means such
        party’s best knowledge and if applied to an entity, means such entity’s best
        knowledge, after due and diligent inquiries of officers, directors, and other
        employees of such party reasonably believed to have knowledge of the matter
        in
        question.

      
        	
                 

              	
                4.1

              	
                Organization,
                  Good Standing and Qualification.

              

      

      4.1.1      The
        Company is duly organized, validly existing and in good standing
        under, and by virtue of, the laws of the place of its incorporation or
        establishment and has all requisite power and authority to own its properties
        and assets and to carry on its business as now conducted and as presently
        proposed to be conducted. The Company is qualified to do business and is
        in good
        standing in each jurisdiction where it currently operates and failure to
        be so
        qualified would have a Material Adverse Effect on its financial condition,
        business, prospects or operations in such jurisdiction.

      4.1.2      Baichuan
        is a company duly organized and existing under the laws of the
        PRC, and has all powers and all governmental licenses, permits, authorizations,
        consents and approvals required to carry on its business as now conducted.
        Baichuan has paid all such governmental fees, taxes and stamp duty required
        to
        be paid by it under applicable PRC and other laws prior to or upon Closing.
        Copies of the business license, Articles of Association, and other
        organizational documents of Baichuan, as amended to date, have been delivered
        to
        the Purchaser and are true, correct and complete and are in full force and
        effect. 

       

      8

       

      

    
      4.2          Due
        Authorization. All corporate action on the
        part of each Group Company, their respective officers, directors and
        shareholders necessary for the authorization, execution and delivery of each
        Transaction Agreement, the authorization, issuance, and delivery of all of
        the
        Shares, the performance of their respective obligations under each Transaction
        Agreement and all other agreements, instruments and documents executed and
        delivered in connection with the transactions contemplated hereby, has been
        taken or will be taken prior to Closing. The Transaction Agreements are valid
        and binding obligations of each Group Company who is a party thereto,
        enforceable against such Group Company in accordance with their respective
        terms, subject, as to enforcement of remedies, to applicable bankruptcy,
        insolvency, moratorium, reorganization and similar laws affecting creditors’
rights generally and to general equitable principles. The Shares are not
        subject
        to any preemptive rights, rights of first refusal, or liens of any kind except
        for rights imposed under the Transaction Agreements.

      4.3          Capitalization.
        The authorized share capital of
        the Company will consist of the following immediately prior to the
        Closing:

      4.3.1      Shares.
        A total of fifty thousand (50,000) Shares
        are authorized, of which sixty-five (65) Shares are issued and
        outstanding.

      4.3.2      Options,
        Warrants, Available Shares. Except the Transaction
        Agreements, there are no options, warrants, conversion privileges or other
        rights or agreements outstanding or under which the Company is or may become
        obligated to issue any securities of any class or series. None of the Company’s
        outstanding shares, and no shares issuable upon exercise, conversion, or
        exchange of any outstanding options or other shares issuable by the Company,
        are
        subject to any preemptive rights, rights of first refusal, or other rights
        to
        purchase such shares (whether in favor of the Company or any other person),
        pursuant to any agreement or commitment to which the Company is a party or
        of
        which the Company is aware, except for the rights imposed in the Transaction
        Agreements.

      4.3.3      Outstanding
        Security Holders. Disclosure
        Schedule 4.3.3 sets forth a complete list of all
        outstanding shareholders, option holders and other security holders of the
        Company, and their ownership percentage, on a fully diluted basis, next to
        each
        shareholder’s, option holder’s and other security holder’s name immediately
        before the Closing.

       

      
        	
                 

              	
                4.4

              	
                Baichuan. 
                   

              

      

      4.4.1             All
        consents, approvals, orders, permits, licenses, authorizations or
        registrations, qualifications, designations, declarations or filings with
        any
        Governmental Authority (“Governmental
        Authorizations”) required under PRC laws for the
        due and proper establishment and operation of Baichuan as currently operated,
        or
        contemplated to be operated, have been duly obtained from the appropriate
        PRC
        authorities and are in full force and effect.

      4.4.2             All
        filings and registrations with the PRC authorities required in
        respect of Baichuan and its operations as currently operated, including the
        registrations with the State Administration of Industry and Commerce, the
        Ministry of Information Industry, tax 

       

      9

       

      

    
      bureau,
        customs authorities, product registration authorities and health
        regulatory authorities, as applicable, have been duly completed in accordance
        with the relevant rules and regulations.

      4.4.3             Baichuan
        has not received any letter or notice from any relevant
        authority notifying Baichuan of the revocation of any Governmental
        Authorization, permit or license issued to it for non-compliance or the need
        for
        compliance or remedial actions in respect of the activities carried out directly
        or indirectly by Baichuan.

      4.4.4             With
        respect to any land use right, building, property and investment
        held or leased by Baichuan, it has exclusive, full and unimpaired legal and
        beneficial ownership of its rights, leasehold interests, property and
        investments free from any mortgages or security interests of any nature,
        third
        party rights, conditions, orders or other restrictions and has obtained all
        necessary approvals and effected all necessary registrations with government
        authorities with respect thereto.

      4.4.5             Baichuan
        has been conducting its business activities within the permitted
        scope of business in its business license or is otherwise operating its business
        in compliance with all relevant legal requirements, including producing,
        processing and/or distributing products with all requisite licenses, permits
        and
        approvals granted by competent PRC authorities.

      4.4.6             No
        Warrantor has any valid reason to believe that any Governmental
        Authorization, license or permit requisite for the conduct of any part of
        Baichuan’s business, which is subject to periodic renewal, will not be granted
        or renewed by the relevant PRC authorities.

      4.4.7             All
        applicable laws and regulations with respect to the opening and
        operation of foreign exchange accounts and foreign exchange activities of
        Baichuan have been complied with, and all requisite approvals from the State
        Administration of Foreign Exchange in relation thereto have been duly
        obtained.

      4.4.8             With
        regard to employment and labor matters, Baichuan has complied with
        all applicable PRC laws and regulations, including laws and regulations
        pertaining to welfare funds, social benefits, medical benefits, insurance,
        retirement benefits, pensions, and the like.

      4.4.9             Baichuan
        owns, leases, rents or otherwise legally possesses all
        properties and assets, including Proprietary Rights, necessary for its
        operations as presently conducted.

      4.4.10           The
        equity interests of Baichuan are owned exclusively by the Baichuan
        Principals and in the amounts and percentages set forth in Disclosure Schedule 4.4.10. Baichuan does not
        have any shareholder, option holder or other security holder who is not set
        forth in Disclosure Schedule 4.4.10.

       

      10

       

      

    
      
        	
                 

              	
                4.5

              	
                Valid
                  Issuance of Shares.
                   

              

      

      4.5.1             The
        Shares, when issued, sold and delivered in accordance with the terms
        of this Agreement, will be duly authorized and validly issued, fully paid,
        non-assessable, and free of any liens. 

      4.5.2             All
        presently outstanding Shares of the Company are duly and validly
        issued, fully paid and non-assessable and free of any liens, and such Shares,
        and all outstanding shares, options and other securities of the Company,
        have
        been issued in full compliance with the requirements of all applicable
        securities laws and regulations, including the Securities Act, and all other
        anti-fraud and other provisions of applicable securities laws and
        regulations.

      4.6          Financial
        Statements. Disclosure Schedule
        4.6 attaches un-audited
        balance sheets of Baichuan as of February 28, 2007, and un-audited cash flow
        statements and un-audited income statements of Baichuan for the 14-month
        period
        then ended (all such financial statements being collectively referred to
        herein
        as the “Financial Statements”). Such Financial
        Statements (a) accord with the books and records of
        Baichuan, (b) are true, correct and complete and present fairly the financial
        condition and state of affairs of Baichuan at the date or dates therein
        indicated and the results of operations for the period or periods therein
        specified, and (c) have been prepared in accordance with IAS or PRC GAAP
        applied
        on a consistent basis, except, as to the un-audited financial statements,
        for
        the omission of notes thereto and normal year-end audit adjustments.
        Specifically, but not by way of limitation, the respective balance sheets
        included in the Financial Statements disclose all of Baichuan’s debts,
        liabilities and obligations of any nature, whether due or to become due,
        on
        their respective dates (including absolute, accrued, and contingent liabilities)
        to the extent such debts, liabilities and obligations are required to be
        disclosed in accordance with the IAS or PRC GAAP, and Baichuan has good and
        marketable unencumbered title to all assets set forth on the balance sheets
        included in the Financial Statements, except for such assets as have been
        spent,
        sold or transferred in the ordinary course of business since their respective
        dates.

      4.7          Liabilities.
        Except as described in
Disclosure Schedule 4.7, no Group
        Company has any indebtedness for borrowed money that it has directly or
        indirectly created, incurred, assumed, or guaranteed, or with respect to
        which
        such Group Company has otherwise become directly or indirectly liable, except
        as
        reflected on the Financial Statements and none of the Group Companies is
        unable
        to pay its debts as and when they fall due or is subject to any insolvency
        proceedings or has had a receiver, liquidator or administrator appointed
        over
        its assets.

      4.8          Title
        to Properties and Assets. Each Group
        Company has good and marketable title to all respective properties and assets
        reflected on the Financial Statements, in each case subject to no mortgage,
        pledge, lien, encumbrance, security interest or charge of any kind. With
        respect
        to the property and assets it leases, each Group Company and the lessor is
        in
        compliance with such leases and such Group Company holds valid leasehold
        interests in such assets free of any liens, encumbrances, security interests
        or
        claims of any party other than the lessors of such property and
        assets.

      4.9          Activities
        Prior to Closing. Except as described
        in Disclosure Schedule 4.9, none
        of the following events has occurred with respect to any Group Company prior
        to
        the Closing:

       

      11

       

      

    
      4.9.1             any
        declaration or payment of any dividend, or authorization or payment
        of any distribution upon or with respect to any class or series of its capital
        shares or any other equity interest;

      4.9.2             any
        incurrence of indebtedness for money borrowed or any other
        liabilities;

      
        	
                 

              	
                4.9.3

              	
                any
                  loans or advances to any
                  person;

              

      

      4.9.4             any
        sale, exchange, assignment, or other disposition of any assets or
        rights (including any Proprietary Rights or other intangible assets) or creation
        of any encumbrance on any of its assets or rights;

      4.9.5             any
        commercial agreement or transaction with any of its officers,
        directors or employees or any entity controlled by any of such individuals
        or
        with its shareholders or persons related to such shareholders;

      4.9.6             any
        damage, destruction or loss, whether or not covered by insurance,
        affecting its assets, properties, financial condition, operating results,
        prospects or business as presently conducted and as presently proposed to
        be
        conducted;

      
        	
                 

              	
                4.9.7

              	
                any
                  waiver of a valuable right or of a debt owed to
                  it;

              

      

      4.9.8             any
        satisfaction or discharge of any lien, claim or encumbrance or
        payment of any obligation that exceeds RMB100,000;

      4.9.9             any
        change or amendment to a material contract or arrangement by which
        any Group Company is bound or subject;

      4.9.10           any
        change in any compensation arrangement or agreement with any
        executive-level employee, contractor or director;

      4.9.11           any
        resignation or termination of any of its directors or key officers;
        or

      4.9.12           any
        other event or condition of any character which would materially
        affect its assets, properties, financial condition, operating results or
        business.

      
        	
                 

              	
                4.10

              	
                Intellectual
                  Property; Status of Proprietary Rights.

              

      

      4.10.1           Each
        Group Company (i) owns free and clear of all claims, security
        interests, liens and other encumbrances, or (ii) has the valid right or license
        to use, all products, materials, software, tools, software tools, computer
        programs, specifications, source code, object code, improvements, discoveries,
        user interfaces, mask works, internet domain names, enterprise or business
        names, logos, data, information and inventions, and all documentation and
        media
        constituting, describing or relating to the foregoing that is required or
        used
        in its business as currently conducted together with all Proprietary Rights
        in
        or to all of the foregoing (collectively, the “Technology”). Disclosure
        Schedule 4.10.1 contains a true,
        complete and accurate list of all Proprietary Rights of the Group Companies
        of
        which patents have been filed or proposed to be 

       

      12

       

      

    
      filed
        and are presently used by each Group Company or necessary for the
        conduct of each Group Company’s business as currently being conducted or
        proposed to be conducted, and such Group Companies own, or have the right
        to use
        under the agreements, all the Proprietary Rights as set out in Disclosure Schedule 4.10.1. 

      4.10.2          The
        possession, development, production, manufacturing, use, offering,
        marketing, licensing, distribution, sale and other exploitation by each Group
        Company of any Technology as now conducted does not (i) infringe, violate,
        misappropriate or otherwise interfere or conflict with any patent and trademark
        rights or (ii) infringe, violate, misappropriate or otherwise interfere or
        conflict with any other rights, title or interest of any third
        party.

      4.10.3           No
        Group Company has received any notice or claim (whether written,
        verbal or otherwise) that (i) contests or challenges in any manner whatsoever
        such Group Company’s ownership or other rights in any Technology, (ii) contests
        or challenges in any manner whatsoever the validity or enforceability of
        any of
        the Proprietary Rights of such Group Company in the Technology, or (iii)
        claims
        or otherwise asserts that such Group Company, the Technology or the conduct
        of
        such Group Company’s business as currently conducted infringes, violates,
        misappropriates or otherwise interferes or conflicts with any right, title
        or
        interest of any third party.

      4.10.4           There
        are no outstanding options, material licenses or agreements
        granting third parties any right to own or use any Technology owned by any
        Group
        Company (“Outbound Technology
        Licenses”), except as disclosed in Disclosure Schedule
        4.10.4. The material licenses
        or other agreements giving a Group Company the right to use a certain Technology
        are listed in Disclosure Schedule 4.10.4 (“Inbound
        Technology
        Licenses”). True and complete copies of all
        Outbound Technology Licenses and Inbound Technology Licenses (collectively,
        the
“Technology Agreements”) have been
        provided to the Purchaser.

      4.10.5           To
        the Knowledge of the Warrantors, all Technology Agreements are valid,
        binding and in full force and effect with respect to each Group Company,
        and
        each other party thereto. All parties to the Technology Agreements have
        performed in all material respects their obligations thereunder, and neither
        any
        Group Company nor any other party thereto is in material default thereunder,
        nor
        has there occurred any material event or circumstance that with notice or
        lapse
        of time or both would constitute a default or event of default on the part
        of
        such Group Company or any other party thereto or give to any other party
        thereto
        the right to terminate or modify any Technology Agreement. No Group Company
        has
        received written notice that any party to any Technology Agreement intends
        to
        cancel or terminate any Technology Agreement.

      4.10.6           No
        Group Company is or will be as a result of the execution or delivery
        of this Agreement and the other Transaction Agreements to which it is a party,
        the consummation of the transactions contemplated hereby and thereby or the
        performance of obligations hereunder or thereunder, or as a result of conducting
        its business as currently contemplated, in breach of any license or other
        agreement relating to Technology.

      4.10.7           No
        Warrantor is aware of any third party that is infringing upon any
        Technology.

       

      13

       

      

    
      4.10.8          To
        the Knowledge of the Warrantors, no Group Company’s employees,
        contractors or consultants is, nor is any Warrantor, obligated under any
        contract or agreement, or subject to any judgment, decree or order of any
        court
        or administrative agency, that would interfere with the use of his or her
        best
        efforts to promote the interests of such Group Company or that would conflict
        with such Group Company’s business.

      4.10.9           Each
        Group Company’s registered patents, copyrights, trademarks and
        service marks are in full force and effect, are not subject to any taxes,
        and
        each Group Company has paid all the maintenance fees with respect
        thereto.

      4.10.10         No
        Warrantor nor any current or former employee, contractor or consultant
        of a Group Company has developed any Technology that is subject to any agreement
        under which such employee, contractor or consultant has assigned or otherwise
        granted to any third party any rights in or to such Technology.

      4.10.11         No
        royalties, fees or other payments are payable by any Group Company to
        any third party by reason of the ownership, possession, sale, marketing,
        use or
        other exploitation of any Technology to the extent necessary for the conduct
        of
        such Group Company’s business as it is now conducted and none (or no additional
        amounts) will be payable as a result of the consummation of the transactions
        contemplated by this Agreement.

      4.10.12        Each
        Group Company maintains and diligently enforces commercially reasonable
        procedures to protect all confidential information relating to the Technology.
        No Group Company has deposited any source code or other Technology in any
        escrow
        account or otherwise delivered such source code or other Technology to any
        escrow agent.

      4.10.13         No
        government funding or facilities, facilities of any university,
        college or other educational institution or public research center, or funding
        or facilities from any third party was used in the development of any
        Technology.

      4.10.14         None
        of the software or firmware embedded or included in or on any
        hardware or other products sold by a Group Company or any other software
        or
        firmware that a Group Company now or in the future intends to sell or license
        either as a separate product or bundled with any other product or service,
        is
        required to be (i) disclosed or distributed in source code form, (ii) licensed
        for the purpose of making derivative works, or (iii) redistributable at no
        charge as the result of the use or incorporation of any Public Software (as
        defined below) in any Technology, the use of any Public Software in connection
        with the development of any Technology or for any other reason. For the purpose
        of this Section 4.10, the term “Public
        Software” means any software that contains, or is
        derived (in whole or in part) from any software that is distributed as free
        software, open source software or similar licensing or distribution
        models.

      
        	
                 

              	
                4.11

              	
                Contracts.

              

      

      4.11.1           Material
        Contracts and Obligations. All
        agreements, contracts, leases, licenses, instruments, commitments (verbal
        or
        written), indebtedness, liabilities and other obligations to which any Group
        Company is a party or by which it is bound, that (i) are material to the
        conduct
        and operations of its business and properties; (ii) involve any of the officers,
        

       

      14

       

      

    
      consultants,
        directors, employees or shareholders of any Group Company
        (the “Employment Contracts”); or (iii)
        obligate any Group Company to share, license or develop any
        material product or technology, are listed in Disclosure
        Schedule 4.11 and have been provided to the Purchaser
        and its counsel. For purposes of this Section 4.11, “material” shall mean
        any agreement,
        contract, indebtedness, liability, arrangement or other obligation either
        (i)
        having an aggregate value, cost, liability or amount of RMB500,000 or more,
        or
        (ii) not terminable upon no more than thirty (30) days notice without penalty
        or
        obligation, unless the aggregate value, cost, liability thereof is less than
        RMB500,000.

      4.11.2           Validity
        and Status. With the exception of the
        Employment Contracts, all material contracts listed in Disclosure Schedule 4.11 are legally valid
        and
        binding, in full force and effect, and enforceable in accordance with their
        respective terms against the parties thereto. The Employment Contracts are
        legally valid and binding, in full force and effect, and enforceable in
        accordance with their respective terms against the parties thereto in all
        material aspects. There is no existing default or breach by any party thereto
        and no Group Company has received any notice or claim or allegation of default
        or breach thereof from any party thereto.

      4.12       Litigation.
        There is no Action pending or
        currently threatened against any Group Company, any Group Company’s activities,
        properties or assets or against any officer, director or employee of any
        Group
        Company in connection with such officer’s, director’s or employee’s relationship
        with, or actions taken on behalf of, any Group Company. There is no factual
        or
        legal basis for any such Action that might result, individually or in the
        aggregate, in any material adverse change in the business, properties, assets,
        financial condition, affairs or prospects of any Group Company. No Group
        Company
        is a party to or subject to the provisions of any order, writ, injunction,
        judgment or decree of any court or government agency or instrumentality and
        there is no Action by any Group Company currently pending or which it intends
        to
        initiate.

      4.13       Governmental
        Consents. All Governmental
        Authorizations on the part of each Group Company required in connection with
        the
        consummation of the transactions contemplated herein and with the business
        of
        each Group Company have been obtained and are currently effective. The offer,
        sale and issuance of the Shares, in conformity with the terms of this Agreement,
        are exempt from the registration and prospectus delivery requirements of
        the
        Securities Act and all other applicable securities laws and regulations.
        

      4.14       Compliance
        with Other Instruments. No Group
        Company is in, nor will the conduct of business of any Group Company as proposed
        to be conducted result in, any violation, breach or default of any
        constitutional document of any Group Company, or in any material respect
        of any
        term or provision of any mortgage, indenture, contract, agreement or instrument
        to which any Group Company is a party or by which it may be bound, or of
        any
        provision of any judgment, decree, order, statute, rule or regulation applicable
        to or binding upon any Group Company. The execution, delivery and performance
        of
        and compliance with the Transaction Agreements and the consummation of the
        transactions contemplated hereby will not result in any such violation, breach
        or default, or be in conflict with or constitute, with or without the passage
        of
        time or the giving of notice or both, either a default under any such
        constitutional documents, or in any material respects, any such contract,
        agreement or instrument or a violation of any statutes, laws, regulations
        or
        orders, or an event which results in the creation of any lien, charge or
        encumbrance upon any asset of any Group Company. 

       

      15

       

      

    
      4.15       Registration
        Rights. No Group Company has granted
        or agreed to grant any Person or entity any registration rights with respect
        to
        any of the securities of any Group Company.

      4.16       Tax
        Matters. The provisions for taxes in the respective
        Financial Statements are sufficient for the payment of all accrued and unpaid
        applicable taxes of each Group Company, whether or not assessed or disputed
        as
        of the date of each such balance sheet. There have been no extraordinary
        examinations or audits of any tax returns or reports by any applicable
        governmental agency, and none are threatened or pending. Each Group Company
        has
        duly filed all tax returns required to have been completed and filed by it
        and
        paid all taxes shown to be due on such returns in a timely manner except
        in such
        cases where, individually or in the aggregate, that the failure to file such
        returns would not have a Material Adverse Effect on any Group Company. There
        are
        in effect no waivers of applicable statutes of limitations with respect to
        taxes
        for any year.

      4.17       Obligations
        of Management; Labor Agreement and Actions; Employee
        Compensation.  

      4.17.1           Each
        employee of each Group Company is identified in Disclosure Schedule 4.17.1 and each executive
        level employee is separately identified on the same schedule, and to the
        Knowledge of the Warrantors, all of whom are currently devoting one hundred
        percent (100%) of his or her working time to the conduct of the business
        of a
        Group Company. No Warrantor is aware that any such executive level employee
        is
        planning to work less than full time at a Group Company in the future. To
        the
        Knowledge of the Warrantors, no executive level employee is currently working
        for a competitive enterprise, whether or not such person is or will be
        compensated by such enterprise. 

      4.17.2           No
        Group Company is bound by or subject to (and none of its assets or
        properties is bound by or subject to) any written or verbal, express or implied,
        contract, commitment or arrangement with any labor union, and no labor union
        has
        requested or has sought to represent any of the employees, representatives
        or
        agents of a Group Company. There is no strike or other labor dispute involving
        a
        Group Company pending or threatened (nor has there been since the incorporation
        of each Group Company), nor is any Group Company aware of any labor organization
        activity involving its employees. 

      4.17.3           None
        of the officers or key employees, or any group of key employees, to
        the Knowledge of the Warrantors, intends to terminate his, her or their
        employment with a Group Company, nor does such Group Company have a present
        intention to terminate the employment of any of the foregoing individuals.
        Except as disclosed in Disclosure Schedule
        4.17.3, the employment of each officer and employee
        of a
        Group Company is terminable at the will of such Group Company. 

      4.17.4           Except
        as disclosed in Disclosure Schedule
        4.17.4, no Group Company is a party to or bound by any
        currently effective employment contract that provides for compensation exceeding
        the average of three (3) months’ remuneration of the employee upon termination,
        deferred compensation agreement, severance agreement, bonus plan, incentive
        plan, profit sharing plan, retirement agreement, or other employee compensation
        agreement.

       

      16

       

      

    
      4.17.5           Each
        Group Company has complied with all applicable national, provincial,
        local or municipal equal employment opportunity and other laws related to
        employment, except for any non-compliance or violation that would not have
        a
        Material Adverse Effect on any Group Company. 

      4.18       Employment
        Agreements; Consulting Agreements.
        Except as disclosed in Disclosure Schedule
        4.18, each employee (if applicable) and officer of
        each
        Group Company has entered into an employment agreement with such Group Company
        and each consultant of each Group Company has entered into a consulting
        agreement. 

      4.19       Interested
        Party Transactions. Except as
        disclosed in Disclosure Schedule 4.19 and other than pursuant
        to the Employment Contracts, no officer or
        director of a Group Company or any Affiliate of any such person has any
        agreement, understanding, or proposed transaction with, or is indebted to,
        any
        Group Company, nor is any Group Company indebted (or committed to make loans
        or
        extend or guarantee credit) to any of them. No officer or director of a Group
        Company has any direct or indirect ownership interest in any firm or corporation
        with which a Group Company is affiliated or with which a Group Company has
        a
        business relationship, or any firm or corporation that competes with a Group
        Company, except that any of the foregoing persons may have record ownership
        interest in the Company or own shares in publicly traded companies that may
        compete with a Group Company. No Affiliate of any officer or director of
        a Group
        Company is directly or indirectly interested in any material contract with
        a
        Group Company. No officer or director of a Group Company or any Affiliate
        of any
        such person has had, either directly or indirectly, any interest in: (a)
        any
        person or entity which purchases from or sells, licenses or furnishes to
        a Group
        Company any goods, property, intellectual or other property rights or services;
        or (b) any contract or agreement to which a Group Company is a party or by
        which
        it may be bound or affected.

      4.20       Option
        Agreements. Each person who, pursuant to any benefit,
        bonus or incentive plan of the Company, holds any option, warrant or right
        to
        acquire Shares or other securities of the Company, has entered into or is
        otherwise bound by, an agreement granting the Company (a) the right to
        repurchase any unvested shares for the original purchase price, or to cancel
        the
        unvested option, warrant or right, in the event the holder’s employment or
        services with the Company terminate for any reason, subject to release of
        such
        repurchase or cancellation right on terms and conditions specified by the
        Board,
        and (b) a right of first refusal with respect to all such shares. The Company
        has furnished to the Purchaser true and complete copies of the forms of all
        option agreements, as
        set forth onDisclosure Schedule
        4.20.

      4.21       Minute
        Books. The minute books of each Group Company made
        available to the Purchaser contain the resolutions of all meetings of directors
        and shareholders or owners of each Group Company since their respective time
        of
        formation, and reflect all transactions referred to in such meetings and
        actions
        accurately in all material respects. 

      4.22       Disclosure.
        No representation or warranty by any
        Warrantor in this Agreement or in any written statement or certificate furnished
        or to be furnished to the Purchaser pursuant to any Transaction Agreement
        contains or will contain any untrue statement of fact in any material respect
        or
        omits or will omit to state any fact required to be stated therein or necessary
        in order to make the statements therein, in light of the circumstances in
        which
        they are made, not misleading 

       

      17

       

      

    
      in
        any material respect. Each of the Warrantors has fully provided the
        Purchaser with all the information that the Purchaser has requested for deciding
        whether to purchase the Shares.

      4.23       Limitation
        of Liabilities. The provisions of this
        Section 4.23 shall operate to limit the liability of the Warrantors in respect
        of any claim for breach of any representation, warranty, covenant, undertaking
        and provision under this Agreement. The Parties agree as follows:

      4.23.1           The
        total amount of liabilities of the Warrantors under this Agreement
        for diminution in value of the Shares acquired by the Purchaser hereunder
        as a
        result of breach of any representation, warranty, covenant, undertaking and
        provision under this Agreement by the Warrantors shall not exceed the aggregate
        amount of the Purchase Price and the Subscription Price that has been received
        by the Warrantors under this Agreement other than as a result of fraud or
        intentional breach by the Warrantors.

      4.23.2           The
        Purchaser shall not bring any claims for breach of any
        representation, warranty, covenant, undertaking and provision hereunder until
        the aggregate amount of Damages it have incurred or could reasonably be expected
        to incur for all such breaches exceeds RMB1,000,000, in which event the
        Purchaser shall have the right to claim for the entire amount.

      4.23.3           The
        Warrantors shall have no liability in respect of the representations
        and warranties under this Agreement to the extent that the facts and
        circumstances giving rise to the claim have been specifically disclosed with
        reasonable details in the Disclosure Schedules and any Transaction
        Agreement.

      ARTICLE
        5

      REPRESENTATIONS
        AND WARRANTIES OF PURCHASER.

      The
        Purchaser hereby represents and warrants to the Company as follows,
        on the date hereof, and on the Closing Date:

      5.1          Authorization.
        The Purchaser has full power and
        authority to enter into this Agreement and the other Transaction Agreements,
        and
        each of the Transaction Agreements, when executed and delivered by the
        Purchaser, will constitute a valid and legally binding obligation of the
        Purchaser, subject as to enforcement of remedies to applicable bankruptcy,
        insolvency, moratorium, reorganization and similar laws affecting creditors’
rights generally and to general equitable principles.

      5.2          Investigation;
        Economic Risk. The Purchaser
        acknowledges that it has had an opportunity to discuss the business, affairs
        and
        current prospects of the Group Companies with their officers, and that it
        has
        had access to information about the Group Companies that it has requested.
        The
        Purchaser acknowledges that it is able to fend for itself in the transactions
        contemplated by this Agreement and has the ability to bear the economic risks
        of
        its investment in the Shares.

      5.3          Purchase
        for Own Account. The Purchaser is
        acquiring the Shares for its own account, not as a nominee or agent, and
        not
        with a view to or in connection with the sale or distribution of any part
        thereof. By executing this Agreement, the Purchaser further represents

       

      18

       

      

    
      that
        it does not have any contract, undertaking, agreement or arrangement
        with any person to sell, transfer or grant participation to such person or
        any
        third person, with respect to any Shares, other than, with respect to the
        Purchaser that is an investment fund, agreements or arrangements governing
        the
        acquisition, management and disposition of fund assets or interests in general
        fund assets with participants in the fund.

      ARTICLE
        6

      CONDITIONS
        TO PURCHASER’S OBLIGATIONS AT CLOSING.

      6.1          The
        obligation of the Purchaser to purchase and subscribe the Shares from
        Zhi Sheng and the Company, respectively, at the Closing is, unless otherwise
        waived in writing by the Purchaser, subject to the fulfillment to the
        satisfaction of the Purchaser on or prior to the Closing of the following
        conditions:

      6.1.1             Representations
        and Warranties Correct. The
        representations and warranties made by the Warrantors in ARTICLE 4 hereof
        shall
        be true and correct and complete with respect to the subjects covered therein
        when made, and shall be true and correct and complete in all material respects
        on the date of the Closing with the same force and effect as if they had
        been
        made on and as of such date except for such representations and warranties
        which
        pertain to a specific date (and such representations and warranties shall
        be
        true, correct and complete on such specific dates).

      6.1.2             Performance
        of Obligations. Each Warrantor shall
        have performed and complied with all agreements, obligations and conditions
        contained in this Agreement that are required or contemplated to be performed
        or
        complied with by it on or before the Closing.

      6.1.3             Due
        Diligence. The Purchaser shall have completed
        its due diligence investigation of the Group Companies, and any corrective
        items
        identified by the Purchaser shall have been corrected, and the results of
        the
        due diligence investigation in legal, financial, managerial and technological
        aspects shall be satisfactory to the Purchaser. Without limiting the foregoing,
        the Purchaser shall have received from the Group Companies all documents
        and
        other materials requested by the Purchaser for the purpose of examining and
        determining the rights in and to any Technology, products and Proprietary
        Rights
        now used, proposed to be used in, or necessary to, the business as now conducted
        and proposed to be conducted by the Group Companies, and the status of its
        ownership rights in and to all such Technology, products and Proprietary
        Rights
        shall be satisfactory to the Purchaser.

      6.1.4             Consents
        and Waivers. Each Warrantor shall have
        obtained any and all consents and waivers necessary or appropriate for
        consummation of the transactions contemplated by this Agreement.

      6.1.5             Laws.
        The offer and sale of the Shares to the
        Purchaser pursuant to this Agreement shall be exempt from the registration
        and
        prospectus delivery requirements of the Securities Act and shall not violate
        or
        breach or result in a violation or breach of any other applicable laws or
        regulations.

      6.1.6             No
        Litigation; No Material Change. Except as set
        forth in the Disclosure Schedules, to the Knowledge of the Warrantors, no
        Action
        shall have been threatened 

       

      19

       

      

    
      or
        instituted against any Warrantor or the Purchaser seeking to enjoin,
        challenge the validity of, or assert any liability against any of them on
        account of, any transactions contemplated by this Agreement or the other
        Transaction Agreements. There shall have been no material adverse change
        to the
        business, operations or prospects of any Group Company on the Closing
        Date.

      6.1.7             Transaction
        Agreements. Counterparts of all
        Transaction Agreements shall have been duly executed and delivered by the
        Company, Baichuan, Baichuan Principals and Mr. Fan (if applicable).

      6.1.8             Proceedings
        and Documents. All corporate and
        other proceedings of the Company, Zhi Sheng and Baichuan in connection with
        the
        transactions contemplated hereby and all documents and instruments incident
        to
        such transactions shall be reasonably satisfactory in substance and form
        to the
        Purchaser.

      6.1.9             Board.
        All actions shall have been taken to
        appoint the representatives that have been designated by the Purchaser as
        directors of the Company, effective upon the Closing.

      6.1.10           Employees.
        Each of the following shall be true in
        respect of the workforce of the Group Companies: (i) the “key employees” set
        forth in Exhibit A hereto shall
        have given assurances reasonably satisfactory to the Purchaser that they
        shall
        continue to work for the Group Companies following the Closing; and (ii)
        at
        least ninety percent (90%) of the headcount of the workforce of the Group
        Companies on the date hereof shall be maintained at Group Companies on the
        Closing Date.

      6.1.11           Shareholder
        Replacement. The Baichuan Principals
        shall have executed all the documents that would allow the Purchaser to transfer
        (i) at Closing, seventy percent (70%) of the equity interests in Baichuan,
        and
        (ii) upon the incorporation of the New WFOE, the remaining thirty percent
        (30%)
        of the equity interests in Baichuan that are held by the Baichuan Principals,
        to
        the new shareholders designated by the Purchaser at its sole discretion (any
        such new shareholders who become shareholders of Baichuan are hereinafter
        referred to as the “Baichuan Replacement
        Shareholders”). Such executed documents shall have
        been delivered to the Purchaser at least two (2) Business Days prior to the
        Closing Date.

      6.1.12           Baichuan
        Restructure Documents. (i) The Baichuan
        Replacement Shareholders, Baichuan and the WFOE shall have executed loan
        agreements, equity pledge agreements, exclusive purchase option agreements,
        power of attorneys or any other agreement in relation thereto at the request
        of
        the Purchaser and to the Purchaser’s full satisfaction; and (ii) the Baichuan
        Principals (or their designated entity), Baichuan and the WFOE shall have
        signed
        an exclusive business cooperation agreement and technical service agreement
        and
        any amendments thereof or any other agreement in relation thereto at the
        request
        of the Purchaser and to the Purchaser’s full satisfaction (all such documents
        under this Section 6.1.12 are collectively referred to as the
“Baichuan Restructure Documents”).

      6.1.13           Business
        Plan. The Purchaser has received a copy
        of the long-term business development plan (the “Business Plan”) of the
        Group Companies
        prepared by the Baichuan Principals and is fully satisfied with the content
        of
        such Business Plan, including the 

       

      20

       

      

    
      contemplated
        utilization of the Subscription Price by the Group Companies
        as set forth in such Business Plan.

      ARTICLE
        7

      CONDITIONS
        TO THE OBLIGATIONS OF ZHI SHENG AND THE COMPANY AT
        CLOSING.

      The
        obligation of Zhi Sheng to sell and the Company to allot and issue
        the Shares to the Purchaser at Closing, unless otherwise waived in writing
        by
        the Company and Zhi Sheng, is subject to the fulfillment to the Company’s and
        Zhi Sheng’s satisfaction on or prior to the Closing of the following
        conditions:

      7.1          Representations
        and Warranties Correct. The
        representations and warranties made by the Purchaser in ARTICLE 5 hereof
        shall
        be true and correct and complete in all material respects with respect to
        the
        subjects covered therein when made, and shall be true and correct and complete
        on the Closing Date with the same force and effect as if they had been made
        on
        such date, subject to changes contemplated by this Agreement.

      7.2          Performance
        of Obligations. The Purchaser shall
        have performed and complied with all agreements, obligations and conditions
        contained in this Agreement that are required or contemplated to be performed
        or
        complied with by it on or before the Closing.

      7.3          Laws.
        The offer and sale of the Shares to the
        Purchaser pursuant to this Agreement shall be exempt from the registration
        and
        prospectus delivery requirements of the Securities Act and shall not violate
        or
        breach or result in a violation or breach of any other applicable law or
        regulation.

      7.4          No
        Litigation. No Action shall have been
        threatened or instituted against the Purchaser seeking to enjoin, challenge
        the
        validity of, or assert any liability against any of them on account of, any
        transactions contemplated by this Agreement or the other Transaction
        Agreements.

      ARTICLE
        8

      COVENANTS
        OF THE WARRANTORS.

      Unless
        otherwise required by the Board to fulfill certain obligations and
        duties as an employee of the Company, if applicable, each Warrantor hereby
        jointly and severally covenants to the Purchaser as follows:

      
        	
                 

              	
                8.1

              	
                Implementation
                  of Business.  Each
                  Warrantor shall take all necessary actions
                  to:

              

      

      8.1.1      implement
        and carry out the business of the Group Companies as directed
        by the Board; and

      8.1.2      procure
        that Baichuan shall obtain certain PRC Governmental
        Authorizations required for the Group Companies’ business as currently operated
        and as proposed to be conducted, including but not limited to the Online
        News
        and Information Service Permit, and that such permit and license shall (i)
        be
        used only in connection with the business of 

       

      21

       

      

    
      the
        Group Companies; (ii) not be transferred, directly or indirectly,
        from Baichuan to any other party (other than another Group Company) without
        the
        Purchaser’s prior written approval and (iii) not be used for any purpose that is
        not expressly approved by the Board.

      8.2          Additional
        Covenants. Except as required by this
        Agreement, no resolution of the directors, owners, members, joint venture
        parties, or shareholders of any Group Company shall be passed nor shall any
        contract or commitment be entered into prior to the Closing without the written
        consent of the Purchaser, except that the Group Companies may carry on their
        businesses in the same manner as heretofore and may pass resolutions and
        enter
        into contracts and commitments in the ordinary course of business and consistent
        with past practice.

      8.3          Notice
        of Certain Events. If at any time before
        the Closing, any Warrantor comes to know of any material fact or event
        which:

      8.3.1      is
        in any way inconsistent with any of the representations and warranties
        in this Agreement;

      
        	
                 

              	
                8.3.2

              	
                renders
                  any fact warranted hereunder is false or misleading;
                  or

              

      

      8.3.3      might
        reasonably be expected to affect the willingness of a prudent
        investor to purchase the Shares on the terms contained in the Transaction
        Agreements or the amount of the consideration a prudent investor would be
        prepared to pay for the Shares; 

      then
        such Warrantor shall immediately notify the Purchaser and the other
        Warrantors in writing, describing the fact or event in reasonable
        detail.

      8.4          Registration
        of Intellectual Property Rights.
        Each Warrantor shall, as soon as practicable after the Closing, have any
        updated
        versions of software programs registered with the relevant PRC authorities,
        with
        Baichuan or the Company as the proprietor of each such intellectual property
        right.

      8.5          Tax
        Indemnity. Subject to the limitation
        provisions in Section 4.23 hereof, the Warrantors hereby jointly and severally
        undertake to indemnify the Purchaser against any and all losses, liabilities,
        damages, suits, obligations, judgments or settlements of any kind (including
        all
        reasonable legal costs, costs of recovery and other reasonable expenses incurred
        by the Purchaser) resulting from any claim of taxation (including those
        resulting from cancellation or reclamation of tax benefits of any kind relating
        to the Group Companies) arising from an event that occurred or is deemed
        to have
        occurred prior to the Closing.

      8.6          Limitation.
        Without prejudice to the limitation
        provisions in Section 4.23 hereof, the covenants contained in Section 8.5
        do not
        apply to any and all losses, liabilities, damages, suits, obligations,
        judgments, settlements of any kind and Damages:

      8.6.1      to
        the extent that full and sufficient provision or reserve in respect
        thereof has been made in the Financial Statements or to the extent that payment
        or discharge of such losses, liabilities, damages, suits, obligations,
        judgments, settlements of any kind and Damages has been taken into account
        therein; and

       

      22

       

      

    
      8.6.2      in
        respect of which provision or reserve has been made in the Financial
        Statements which is insufficient only by reason of any increase in rate of
        tax
        made after the Closing Date.

      8.7          Baichuan
        Replacement Shareholders. At any time
        after the Closing Date and upon the delivery by the Purchaser of a written
        notice to any Warrantor, the Warrantors shall:

      8.7.1      cause
        the Baichuan Principals, and assist the Purchaser with best efforts
        to cause the Company, to submit relevant documents to the PRC Government
        Authorities for approval of the transfer of the equity interests of Baichuan
        from the Baichuan Principals to the Baichuan Replacement Shareholders after
        the
        Closing Date; and

      8.7.2      use
        best efforts to provide any assistance reasonably requested by the
        Purchaser to facilitate the submission of documents to the relevant Government
        Authorities for the transfer of the equity interests of Baichuan from the
        Baichuan Principals to the Baichuan Replacement Shareholders and the granting
        of
        approvals thereon.

      8.8          Baichuan
        Principals. At any time prior to
        completion of the transfer of one hundred percent (100%) the equity interests
        in
        Baichuan from the Baichuan Principals to the Baichuan Replacement Shareholders,
        the Baichuan Principals shall not:

      8.8.1      sell,
        contract to sell, transfer, mortgage, or dispose in any manner any
        of the equity interests of Baichuan, or allow any placement thereon as a
        security interest, except to the WFOE or the New WFOE;

      8.8.2      cause
        the shareholders meeting or the board of directors of Baichuan to
        approve the sale, transfer, mortgage or disposition in any manner any of
        the
        equity interests of Baichuan, or allow the placement thereon of any security
        interest, except to the WFOE or the New WFOE; or

      8.8.3      cause
        Baichuan to supplement, change, or amend its articles of
        association in any manner, increase or decreases its registered capital,
        or
        change its share capital structure in any manner without the prior written
        consent of the Purchaser and the WFOE.

      ARTICLE
        9

      INDEMNIFICATION.

      9.1          Indemnification
        by the Warrantors. Subject to the
        limitation provisions in Section 4.23 hereof, the Warrantors shall, jointly
        and
        severally, indemnify the Purchaser and its employees, officers, directors,
        Affiliates and agents (the “Indemnified
        Persons”), in respect of, and hold the Indemnified
        Persons harmless against, any and all Damages resulting from:

      
        	
                 

              	
                9.1.1

              	
                a
                  Warrantor’s breach of any Transaction
                  Agreement;

              

      

      9.1.2      any
        audit or adjustment by a PRC tax or other government authority within
        twenty-four (24) months after the Closing with respect to any Group Company’s
        business activities conducted before the Closing; or

       

      23

       

      

    
      9.1.3      any
        Damages incurred by the Company within twenty-four (24) months after
        the Closing for infringement of third-party right or violation of any law,
        rule
        or regulation caused by or related to any of the Group Companies’ or their
        Affiliates’ business and operations, including the use of the Technology to
        transfer unlicensed media content over the internet, that occurred prior
        to the
        Closing.

      For
        purposes of this Agreement, “Damages” shall mean
        and include any and all
        monetary damages, fines, penalties, interest obligations, deficiencies
        (including amounts paid in settlement, interest, court costs, costs of
        investigators, fees and expenses of attorneys, accountants, financial advisors
        and other experts, and other expenses of litigation) incurred or suffered
        by an
        Indemnified Person or any Affiliate thereof.

       

      
        	
                 

              	
                9.2

              	
                Method
                  of Asserting Claims.

              

      

      9.2.1      The
        Indemnified Person shall give prompt written notification to the
        Warrantors of the Damages which form the basis of any claim for which the
        indemnification pursuant to this Section 9.2 may be sought (a
“Claim”), provided,
        however, that the failure to provide such notice shall not release the
        Warrantors from any obligations under this Section 9.2 except to the extent
        such
        Warrantors is materially prejudiced by such failure and shall not relieve
        such
        Warrantors from any other obligation or liability that it may have to any
        Indemnified Person otherwise than under this Section 9.2. Within ten (10)
        calendar days after delivery of such notification, the Warrantors may, upon
        written notice thereof to the Indemnified Person, assume control of the defense
        of such Claim with counsel reasonably satisfactory to the Indemnified Person,
        provided that the Warrantors acknowledges in writing to the Indemnified Person
        that any damages, fines, costs or other liabilities that may be assessed
        against
        the Indemnified Person in connection with such Claim constitute Damages for
        which the Indemnified Person shall be entitled to indemnification pursuant
        to
        this Section 9.2. If the Warrantors do not assume control of such defense,
        the
        Indemnified Person shall control such defense. The party not controlling
        the
        defense of such Claim may participate therein at its own expense; provided
        that
        if the Warrantors assumes control of such defense and the Indemnified Person
        reasonably concludes that the Warrantors and the Indemnified Person have
        conflicting interests or different defenses available with respect to such
        Claim, then the reasonable fees and expenses of counsel to the Indemnified
        Person shall be considered “Damages” for purposes
        of this
        Agreement.

      9.2.2      In
        the event that the Warrantors exercises the right to undertake any
        such defense against any such Claim as provided above, the Indemnified Person
        shall cooperate with the Warrantors in such defense and as soon as practicable
        make available to the Warrantors, at the Warrantors’ expense, all witnesses,
        pertinent records, materials and information in the Indemnified Person’s
        possession or under the Indemnified Person’s control relating thereto as is
        reasonably required by the Warrantors. Similarly, in the event the Indemnified
        Person is, directly or indirectly, conducting the defense against any such
        Claim, the Warrantors shall cooperate with the Indemnified Person in such
        defense and as soon as practicable make available to the Indemnified Person,
        at
        the Warrantors’ expense, all such witnesses, records, materials and information
        in the Warrantors’ possession or under the Warrantors’ control relating thereto
        as is reasonably required by the Indemnified Person. The party controlling
        such
        defense shall keep the other party advised of the status of such Claim and
        the
        defense thereof and shall consider in good faith recommendations made by
        the
        other party with respect thereto. The Indemnified 

       

      24

       

      

    
      Person
        shall not agree to any settlement of such Claim without the prior
        written consent of the Warrantors, which shall not be unreasonably
        withheld.

      9.2.3      If
        a third party asserts that an Indemnified Person is liable to such
        third party for a monetary or other obligation which may constitute or result
        in
        Damages for which such Indemnified Person may be entitled to indemnification
        pursuant to this Article 9, and such Indemnified Person reasonably determines
        that it has a valid business reason to fulfill such obligation, then (i)
        such
        Indemnified Person shall be entitled to satisfy such obligation, without
        prior
        notice to or consent from the Warrantors, (ii) such Indemnified Person may
        make
        a claim for indemnification pursuant to this Section 9.2, and (iii) such
        Indemnified Person shall be reimbursed for any such Damages for which it
        is
        entitled to indemnification pursuant to this Section 9.2.

      
        	
                 

              	
                9.3

              	
                Holdback.

              

      

      9.3.1      With
        respect to any Claim that has been accepted in writing by any
        Warrantor or resolved pursuant to Section 11.13, to the extent the Holdback
        Amount has not been consumed or paid to any Warrantor, the Purchaser shall
        satisfy such Claim from the Holdback Amount.

      9.3.2      On
        the first Business Day following the expiration of six (6) months
        after the Closing Date, the balance, if any, of the Holdback Amount after
        deducting (i) the amount of any Claim that has been accepted by any Warrantor
        in
        writing or resolved pursuant to Section 11.13, and (ii) any and all reasonable
        fees and expenses incurred by the Purchaser in connection with any Claim,
        shall
        be paid by the Purchaser to a single account specified by Zhi Sheng.

      9.3.3      Notwithstanding
        anything in the foregoing to the contrary, to the extent
        that at the time for payment to any Warrantor of the balance of the Holdback
        Amount there are any pending Claims, the Purchaser shall be entitled to retain
        the amount of such Claims until a resolution of such Claims is reached pursuant
        to Section 11.13, and upon such resolution, shall promptly pay any remaining
        balance of the Holdback Amount to a single account designated by Zhi
        Sheng.

      ARTICLE
        10

      CONFIDENTIALITY
        AND NON-DISCLOSURE.

      10.1       Disclosure
        of Terms. The terms and conditions of
        this Agreement and any other Transaction Agreements (collectively, the
“Terms”), including
        their existence, shall be considered confidential information and shall not
        be
        disclosed by any party hereto to any third party without the consent of all
        other parties except in accordance with the provisions set forth
        below.

      10.2       Legally
        Compelled Disclosure. In the event that any Party or any
        of its Affiliates is requested or becomes legally compelled (including without
        limitation, pursuant to securities laws and regulations of any jurisdiction)
        to
        disclose the existence of this Agreement or the content of any of the Terms
        in
        contravention of the provisions of this Section 10.2, that Party has the
        right
        to make such disclosure in its sole discretion and without giving prior written
        notice to any other party hereto.

       

      25

       

      

    
      10.3       Other
        Exceptions. Notwithstanding any other provision of this
        Section 10.3, the confidentiality obligations of the parties shall not apply
        to:
        (i) information which a disclosing party learns from a third party having
        the
        right to make the disclosure, provided the disclosing party complies with
        any
        restrictions imposed by the third party; (ii) information which is in the
        disclosing party’s possession prior to the time of disclosure by the protected
        party and not acquired by the disclosing party under a confidentiality
        obligation; (iii) information which enters the public domain without breach
        of
        confidentiality by the disclosing party; or (iv) any disclosure by a party
        to
        its employees, officers, bankers, partners, accountants, attorneys or other
        professional advisers, in each case only where such Persons are under
        appropriate confidentiality obligations.

      
        	
                 

              	
                10.4

              	
                Press
                  Releases.

              

      

      10.4.1    Mr.
        Fan and Zhi Sheng shall not issue any press release or make any public
        announcement with respect to this Agreement or any other Transaction Agreement
        or the transactions contemplated hereby without the prior written consent
        of the
        Purchaser.

      10.4.2    The
        Purchaser may issue any press release or make any public announcement as
        it
        deems to be appropriate with respect to this Agreement or any other Transaction
        Agreement or the transactions contemplated hereby at its own
        discretion.

      10.5               Other
        Information. The provisions of this ARTICLE
        10 shall survive the termination of this Agreement and shall be in addition
        to,
        and not in substitution for, the provisions of any separate non-disclosure
        agreement executed by any of the parties hereto with respect to the transactions
        contemplated hereby.

      ARTICLE
        11

      MISCELLANEOUS.

      11.1              Governing
        Law. This Agreement shall be governed
        in all respects by the laws of Hong Kong.

      11.2               Survival.
        The representations, warranties,
        covenants and agreements made herein shall survive any due diligence
        investigation made by any party hereto and shall survive the
        Closing.

      11.3               Successors
        and Assigns. Except as otherwise
        expressly provided herein, the provisions hereof shall inure to the benefit
        of,
        and be binding upon, the successors, permitted assigns, heirs, executors
        and
        administrators of the parties hereto whose rights or obligations hereunder
        are
        affected by such amendments. This Agreement and the rights and obligations
        herein may be assigned by the Purchaser to any Affiliate of the Purchaser.
        No
        Warrantor may assign its rights or delegate its obligations under this Agreement
        without the written consent of the Purchaser.

      11.4              Entire
        Agreement. This Agreement and the
        schedules and exhibits hereto and thereto and the Transaction Agreements,
        which
        are hereby expressly incorporated herein by this reference, constitute the
        entire understanding and agreement between the parties with regard to the
        subjects hereof and thereof. 

       

      26

       

      

    
      11.5               Notices.
        Except as may be otherwise provided
        herein, all notices, requests, waivers and other communications made pursuant
        to
        this Agreement shall be in writing and shall be conclusively deemed to have
        been
        duly given (i) when hand delivered to the other party; (ii) when sent by
        facsimile at the number set forth below, upon a successful transmission report
        being generated by the sender’s machine; or (iii) three (3) Business Days after
        deposit with an internationally-recognized overnight delivery service, postage
        prepaid, addressed to the parties as set forth in Exhibit
        B with next-business-day delivery guaranteed, provided
        that the sending party receives a confirmation of delivery from the delivery
        service provider. Each person making a communication hereunder by facsimile
        shall promptly confirm by telephone to the person to whom such communication
        was
        addressed each communication made by it by facsimile pursuant hereto but
        the
        absence of such confirmation shall not affect the validity of any such
        communication. A party may change or supplement the addresses given above,
        or
        designate additional addresses, for purposes of this Section 11.5 by giving
        the
        other party written notice of the new address in the manner set forth
        above.

      11.6              Amendments
        and Waivers. This Agreement may be
        amended only with the prior written consent of the Purchaser and the Baichuan
        Principals.

      11.7              Delays
        or Omissions. No delay or omission to
        exercise any right, power or remedy accruing to any party upon any breach
        or
        default of any other party hereto under this Agreement, shall impair any
        such
        right, power or remedy of the aggrieved party nor shall it be construed to
        be a
        waiver of any such breach or default, or an acquiescence therein, or of any
        similar breach of default thereafter occurring; nor shall any waiver of any
        other breach or default theretofore or thereafter occurring. Any waiver,
        permit,
        consent or approval of any kind or character on the part of any party of
        any
        breach of default under this Agreement or any waiver on the part of any party
        of
        any provisions or conditions of this Agreement, must be in writing and shall
        be
        effective only to the extent specifically set forth in such writing. All
        remedies, either under this Agreement, or by law or otherwise afforded to
        the
        parties shall be cumulative and not alternative.

      11.8               Finder’s
        Fees. Except as set forth in
Disclosure Schedule
        11.8 by the
        Company, each party (i) represents and warrants to the other party hereto
        that
        it has not retained any finder or broker in connection with the transactions
        contemplated by this Agreement, and (ii) hereby agrees to indemnify and to
        hold
        harmless the other party hereto from and against any liability for any
        commission or compensation in the nature of a finder’s fee of any broker or
        other person or firm (and the costs and expenses of defending against such
        liability or asserted liability) for which the indemnifying party or any
        of its
        employees or representatives are responsible.

      11.9              Interpretation;
        Titles and Subtitles. This
        Agreement shall be construed according to its fair language. The rule of
        construction to the effect that ambiguities are to be resolved against the
        drafting party shall not be employed in interpreting this Agreement. The
        titles
        of the sections and subsections of this Agreement are for convenience of
        reference only and are not to be considered in construing this
        Agreement.

       

      27

       

      

    
      11.10            Counterparts.
        This Agreement may be executed in
        any number of counterparts, each of which shall be an original, but all of
        which
        together shall constitute one instrument.

      11.11            Severability.
        Should any provision of this
        Agreement be determined to be illegal or unenforceable, such determination
        shall
        not affect the remaining provisions of this Agreement.

      11.12            Pronouns.
        All pronouns and any variations thereof
        are deemed to refer to the masculine, feminine, neuter, singular or plural,
        as
        the identity of the Person or Persons may require.

      11.13             Dispute
        Resolution. Any
        dispute, controversy or claim arising out of or relating to this
        Agreement, or the breach, termination or invalidity thereof, shall be settled
        by
        arbitration in accordance with the UNCITRAL arbitration rules then in effect.
        The appointing authority shall be Hong Kong International Arbitration Centre
        (“HKIAC”). The place
        of
        arbitration shall be in Hong Kong at HKIAC. There shall be three (3)
        arbitrators. The language to be used in the arbitral proceedings shall be
        English. Any such arbitration shall be administered by HKIAC in accordance
        with
        HKIAC procedures for arbitration in force at the date of this Agreement
        including such additions to the UNCITRAL arbitration rules as are therein
        contained.

       

      [Signature
        Page Follows]

       

      28

       

      

    
      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement on
        the day and year herein above first written.

       

       

      
        	
                Ixworth
                  Enterprises Limited

                 

                 

                By:
/s/
                  Wang Shuang

                Name:    Mr.
                  Wang Shuang

                Title:       Director

                 

                 

                 

              	
                Fan
                  Hui Yang

                 

                 

                /s/
                  Fan Hui Yang

                 

                 

                 

              
	
                Beijing
                  Ninetowns Network and Software Co.,
                  Ltd.

                 

                 

                By:
/s/
                  Ng Kin Fai

                Name:    Mr.
                  Ng Kin Fai

                Title:       Director

                 

                 

                 

              	
                Zhi
                  Sheng Limited

                 

                 

                By:
/s/
                  Fan Hui Yang

                Name:    Mr.
                  Fan Hui Yang

                Title:       Director

                 

              
	
                Zhou
                  Lijun

                 

                 

                /s/
                  Zhou Lijun

                 

                 

                 

                 

                 

              	
                Ample
                  Spring Holdings Limited

                 

                 

                By:
/s/
                  Fan Hui Yang

                Name:    Mr.
                  Fan Hui Yang

                Title:       Director

                 

                 

              
	
                Zhou
                  Peiji

                 

                 

                /s/
                  Zhou Peiji

                 

                 

              	
                Beijing
                  Baichuan Tongda Science and Technology Development Co.,
                  Ltd.

                 

                 

                By:
/s/
                  Zhou Peiji

                Name:    Mr.
                  Zhou Peiji

                Title:       Director

                 

              

      

       

       

      [Signature
        Page of Share Purchase and Subscription
        Agreement]

       

      

    
      Schedule
        I

      Disclosure
        Schedules

       

      

    
      Exhibit
        A

      Key
        Employees

      
        	
                 

              	
                §

              	
                Zhou
                  Peiji 

              

      

      
        	
                 

              	
                §

              	
                Zheng
                  Min 

              

      

      
        	
                 

              	
                §

              	
                Luo
                  Peng 

              

      

      
        	
                 

              	
                §

              	
                Wei
                  Wen Qi

              

      

      
        	
                 

              	
                §

              	
                Wang
                  Dong 

              

      

      
        	
                 

              	
                §

              	
                Liu
                  Shuang 

              

      

      
        	
                 

              	
                §

              	
                Zhang
                  Wen Jie 

              

      

      
        	
                 

              	
                §

              	
                Yao
                  Hu 

              

      

       

      

    
      Exhibit
        B

      Notice
        Addresses

       

      
        	
                To
                  the Purchaser and the WFOE:

              	
                Suites
                  1705-6,
17/F, Two Chinachem Exchange Square,
338
                  King’s Road,
North Point, Hong Kong
Attn: Tommy Siu Lun Fork
Fax
                  No.: (852) 2868 4483
 

              
	
                To
                  the Company:

              	
                Floor
                  14, Building B, Jinyun Plaza,
No. 43 Xizhimen North
                  Street,
Haidian District,
Beijing,
                  PRC
 
Attn:           Zhou
                  Peiji
Fax No.:    (8610)
                  58365355
 

              
	
                To
                  Baichuan:

              	
                Floor
                  14, Building B, Jinyun Plaza,
No. 43 Xizhimen North
                  Street,
Haidian District,
Beijing,
                  PRC
 
Attn:           Zhou
                  Peiji
Fax No.:    (8610)
                  58365355
 

              
	
                To
                  Mr. Fan, Zhi Sheng and the
Baichuan
                  Principals:

              	
                Floor
                  14, Building B, Jinyun Plaza,
No. 43 Xizhimen North
                  Street,
Haidian District,
Beijing,
                  PRC
 
Attn:           Zhou
                  Peiji
Fax No.:    (8610)
                  58365355ex4-73.htm

    
      Execution
        Version

       

      Exhibit
        4.73

       

      SHAREHOLDERS
        AGREEMENT

       

      by
        and among

       

      Ixworth
        Enterprises Limited

       

      Mr.
        Fan Hui Yang

       

      Zhi
        Sheng Limited

       

      and

       

      Ample
        Spring Holdings Limited

       

      April
        26, 2007

       

       

       

      

      

    
      SHAREHOLDERS
        AGREEMENT

       

      This
        Shareholders Agreement (this “Agreement”) is made
        on April 26, 2007 by and
        among the following parties:

      A.           Ixworth
        Enterprises Limited, a British
        Virgin Islands company (the “Investor,” together
        with the Founder, each a
“Shareholder” and
        collectively, the “Shareholders”);

      
        	
                 

              	
                B.

              	
                Mr.
                  Fan Hui Yang (ID No.
                  D538227(1));

              

      

      
        	
                 

              	
                C.

              	
                Zhi
                  Sheng Limited, a British Virgin
                  Islands company (the “Founder”);
                  and

              

      

      D.           Ample
        Spring Holdings Limited, a British
        Virgin Islands company (the “Company”).

      RECITALS

      WHEREAS,
        Mr. Fan Hui Yang is the sole shareholder of the Founder and the
        Founder currently owns the entire issued share capital of the
        Company.

      WHEREAS,
        the Investor is a party to that certain share purchase and
        subscription agreement dated April 9, 2007 among, inter alios, the Company
        and
        the Founder (the “Purchase and Subscription
        Agreement”). A condition to the Investor’s
        obligations at the closing as set forth under the Purchase and Subscription
        Agreement is the execution of this Agreement.

      WHEREAS,
        the Investor agreed to (i) subscribe from the Company, and the
        Company has agreed to issue and allot to the Investor, thirty-five (35) Ordinary
        Shares; and (ii) purchase from the Founder, and the Founder has agreed to
        sell
        to the Investor, thirty-five (35) Ordinary Shares, which collectively with
        the
        Ordinary Shares in (i) above represents seventy percent (70%) of the equity
        interest in the Company on a fully-diluted basis immediately after the closing
        of the transactions contemplated under the Purchase and Subscription Agreement,
        on the terms and conditions set forth in the Purchase and Subscription
        Agreement. 

      AGREEMENT

      NOW,
        THEREFORE, in consideration of the mutual promises and covenants
        herein contained, and other consideration, the receipt and adequacy of which
        is
        hereby acknowledged, the parties hereto agree as follows:

      
        	
                 

              	
                1.

              	
                Certain
                  Definitions.  

              

      

      1.1          Certain
        Defined Terms. As used in this Agreement,
        the following terms shall have the following respective meanings:

      “Affiliate”
        shall mean, with respect to any given Person, a Person that Controls, is
        Controlled by, or is under common Control with the given Person, whereas
        “Control” means, when
        

       

       

      
        	
                 

              	
                1

              

      

       

      

      

    
      used
        with respect to any Person, the power to direct the management and
        policies of such Person, directly or indirectly, whether through the ownership
        of equity rights, by contract or otherwise, and the terms “Controlling” and “Controlled”
have
        meanings correlative to the
        foregoing. 

      “Agreement”
        shall have the meaning as ascribed to it in the introductory paragraph of
        this
        Agreement. 

      “Baichuan
        Restructure
        Documents” shall have the meaning as ascribed to it
        in Section 6.1.12 of the Purchase and Subscription Agreement.

      “Board”
shall
        mean the board of directors of the Company. 

      “Business
        Day”
or “business
        day” shall
        mean any day that is not a Saturday, Sunday, legal holiday or a day on which
        banks are required to be closed in the British Virgin Islands, Hong Kong
        Special
        Administrative Region or the PRC.

      “Closing”
        shall have the meaning as ascribed
        to it in Section 3.1.1 of the Purchase and Subscription Agreement.

      “Company”
shall
        have the meaning as ascribed to it in the introductory paragraph of this
        Agreement.

      “Convertible
        Securities” shall mean all options, warrants and other
        securities convertible or
        exercisable into Ordinary Shares.

      “Exchange
        Act”
shall mean the U.S. Securities and Exchange
        Act of 1934, as
        amended.

      “Founder”
shall
        have the meaning as ascribed to it in the introductory paragraph of this
        Agreement.

      “Hong
        Kong”
shall mean the Hong Kong Special Administrative
        Region.

      “Investor”
        shallhave the meaning as ascribed to it in the introductory
        paragraph of this Agreement.

      “Ordinary
        Shares” shall mean the ordinary shares of the Company,
        par value of US$1.00 per
        share.

      “Person”
shall
        mean any corporation, company, partnership, limited liability company, other
        business organization or entity, and any individual.

      “PRC”
shall
        mean
        the People’s Republic of China, excluding the Hong Kong Special Administrative
        Region, the Macau Special Administrative Region and the islands of
        Taiwan.

      “Purchase
        and Subscription
        Agreement” shall have the meaning as ascribed to it
        in the recitals of this Agreement.

       

      
        	
                 

              	
                -2-

              

      

       

      

      

    
      “Qualified
        IPO”
shall mean either (i) a public offering of
        the Ordinary Shares (or depositary
        receipts or other securities evidencing Ordinary Shares) pursuant to an
        effective registration statement under the Securities Act of 1933, as amended,
        of the United States (the “Securities
        Act”), or (ii) any similar public offering on
        an
        internationally recognized stock exchange, covering the offer and sale of
        Ordinary Shares or the closing of a firm commitment public offering pursuant
        to
        an effective registration statement on Form F-1 under the Securities Act,
        which
        is underwritten by a managing underwriter of international standing and approved
        by the Investor in writing.

      “Registration”
shall
        mean registration effected by preparing and filing a registration
        statement under the Securities Act, and the declaration of effectiveness
        of such
        registration statement.

      “Registrable
        Securities” shall mean: (i) Ordinary Shares of the Company issued by
        the
        Company; (ii) Ordinary Shares of the Company issued as (or issuable upon
        the
        conversion or exercise of any warrant, right or other security which is issued
        as) a dividend or other distribution with respect to, or in exchange for
        or in
        replacement of, any of the foregoing; (iii) any other Ordinary Share owned
        or hereafter acquired by the Investor, including Ordinary Shares issued in
        respect of the Ordinary Shares described in (i)-(iii) above upon any share
        split, share dividend, recapitalization or a similar event; and (iv) any
        depositary receipts issued by an institutional depositary upon deposit of
        any of
        the foregoing. Notwithstanding the foregoing, “Registrable Securities” shall not
        include
        any Registrable Securities sold by a person in a transaction in which rights
        under this Agreement are not assigned in accordance with this Agreement or
        any
        Registrable Securities sold in a public offering, whether sold pursuant to
        Rule
        144 promulgated under the Securities Act, or in a registered offering, or
        otherwise.

      “Restated
        Articles” shall mean the Amended and Restated Memorandum
        and Articles of
        Association of the Company in substantially the form acceptable to the
        Shareholders.

      “RMB”
shall
        mean
        the lawful currency of the PRC.

      “SEC”
shall
        mean
        the U.S. Securities and Exchange Commission.

      “Securities
        Act”
shall mean the U.S. Securities Act of 1933,
        as amended.

      “Shareholder”
or
        “Shareholders”
shallhave
        the meaning as ascribed to it in the introductory
        paragraph of this Agreement.

      “Shares”
shall
        mean all Ordinary Shares now owned or subsequently acquired by any Shareholder.
        

      “Subsidiary”
or
        “subsidiary”shall
        mean, with respect to any subject entity, (i)
        any company, partnership or other Person (x) more than fifty percent (50%)
        of
        whose shares or other interests entitled to vote in the election of directors,
        or (y) more than a fifty percent (50%) interest in the profits or capital
        of
        such entity, are owned or controlled directly or indirectly by the subject
        entity or through one or more Subsidiaries of the subject entity; (ii) any
        entity whose assets, or 

       

      
        	
                 

              	
                -3-

              

      

       

      

      

    
      portions
        thereof, are consolidated with the net earnings of the subject
        entity and are recorded on the books of the subject entity for financial
        reporting purposes in accordance with IFRS or U.S. GAAP or other relevant
        generally accepted accounting practices; or (iii) any entity with respect
        to and
        which the subject entity has the power to otherwise direct the business and
        policies of that entity directly or indirectly through another subsidiary.
        

      “Transaction
        Agreements” shall mean this Agreement, the Purchase and
        Subscription Agreement and
        the Baichuan Restructure Documents.

      “Transfer”
shall
        mean, directly or indirectly, selling, transferring, assigning or otherwise
        disposing of, all or any of the Shares in the Company to any other
        Person.

      “U.S.
        GAAP”
shall mean the accounting principles generally
        accepted in the United
        States.

      1.2          Definitions.
        The following terms have the
        meanings set forth in the Sections below:

       

      
        	
                Definition

              	
                Location

              
	
                Confirmation
                  Notice

              	
                Section
                  6.1

              
	
                Co-Sale
                  Closing

              	
                Section
                  7.2

              
	
                Drag-Along
                  Notice

              	
                Section
                  8.2

              
	
                Drag-Along
                  Right

              	
                Section
                  8.1

              
	
                Drag-Along
                  Sale

              	
                Section
                  8.1

              
	
                Dragged
                  Shareholder

              	
                Section
                  8.1

              
	
                HKIAC

              	
                Section
                  16.12

              
	
                Information

              	
                Section
                  14.3

              
	
                Investor
                  Director

              	
                Section
                  14.1

              
	
                New
                  Securities

              	
                Section
                  4.3

              
	
                Offered
                  Price

              	
                Section
                  5.2

              
	
                Offered
                  Shares

              	
                Section
                  5.2

              
	
                Participation
                  Notice

              	
                Section
                  4.4

              
	
                Participation
                  Rights Holder

              	
                Section
                  4.1

              
	
                Prohibited
                  Transfer

              	
                Section
                  9.3

              

      

       

       

      
        	
                 

              	
                -4-

              

      

       

      

      

    
       

      
        	
                Definition

              	
                Location

              
	
                Proposed
                  Transferee

              	
                Section
                  5.2

              
	
                Pro
                  Rata Share

              	
                Section
                  4.2

              
	
                Put
                  Shares

              	
                Section
                  9.3

              
	
                Put
                  Notice

              	
                Section
                  9.3

              
	
                Refusal
                  Period

              	
                Section
                  6.1

              
	
                Residual
                  Shares

              	
                Section
                  7.1

              
	
                Restricted
                  Period

              	
                Section
                  5.1

              
	
                Right
                  of Co-Sale

              	
                Section
                  7

              
	
                Right
                  of First Refusal

              	
                Section
                  6

              
	
                Right
                  of Participation

              	
                Section
                  4.1

              
	
                Terms

              	
                Section
                  15.1

              
	
                Transfer
                  Notice

              	
                Section
                  5.2

              

      

       

      
        	
                 

              	
                2.

              	
                INFORMATION
                  AND INSPECTION RIGHTS.

              

      

      
        	
                 

              	
                2.1

              	
                Information
                  and Inspection Rights.

              

      

      (a)          Information
        Rights. The Company covenants and
        agrees that, commencing on the date hereof, the Company shall deliver to
        the
        Investor the following with respect to the Company and its
        Subsidiaries:

      (i)        annual
        audited consolidated financial statements within ninety (90) days
        after the end of each fiscal year, audited by an international accounting
        firm
        approved by the Investor;

      (ii)       six-month
        unaudited consolidated financial statements within thirty (30) days after
        the
        end of such six-month period;

      (iii)     monthly
        unaudited consolidated financial statements within ten (10) days
        after the end of each month; 

      (iv)      an
        annual consolidated operating budget and strategic plan for the
        following fiscal year within thirty (30) days prior to the end of each fiscal
        year; and

      (v)       upon
        the
        written request by the Investor, such other information as the Investor shall
        reasonably request.

       

      
        	
                 

              	
                -5-

              

      

       

      

      

    
      All
        financial statements to be provided to the Investor pursuant to this
        Section 2.1 and pursuant to any other Transaction Agreement, shall include
        a
        balance sheet, a statement of profit or loss and a statement of cash flows,
        and
        shall be prepared in the English language in accordance with the U.S. GAAP
        and
        shall consolidate all of the financial results of the Company and its
        Subsidiaries.

      (b)          Inspection
        Rights. The Company covenants and
        agrees that, commencing on the date hereof, the Investor or its appointee
        shall
        have the right of inspection, including the right to inspect the properties
        and
        facilities of the Company and/or any of its Subsidiaries and/or any of its
        joint
        venture companies and/or any of its Affiliates, to access, examine and copy
        all
        books or accounts of the Company and/or any of its Subsidiaries, and to discuss
        the business, operations and conditions of the Company and each of its
        Subsidiaries with their respective directors, officers, employees, accounts,
        legal counsel and investment bankers, with the full cooperation of the Company,
        during reasonable business hours.

      (c)          Termination
        of Rights. Except as set forth in
        Section 2.2 below, the foregoing information and inspection rights shall
        terminate upon the closing of a Qualified IPO.

      2.2          Information
        Rights After a Qualified IPO. The
        Company covenants that the Company shall deliver to the Investor (i) promptly
        after filing, copies of all of the Company’s annual and periodic reports made
        available to its shareholders as well as all public reports (including any
        periodic, interim, or extraordinary reports) filed with any stock exchange
        or
        securities regulatory authority, and (ii) promptly upon request, copies of
        the
        current versions of all documents relating to any subsequent financings by
        the
        Company, or otherwise affecting the Shares or the Investor, in each case
        with
        all amendments and restatements. This Section 2.2 shall survive any termination
        of this Agreement.

      2.3          Re-sale
        Rights.  The Company shall at its
        own cost use its best efforts to assist the Investor in the sale or disposition
        of its Registrable Securities, including without limitation (a) the prompt
        delivery of applicable instruction letters to the Company’s transfer agent to
        remove legends from the Investor’s share certificates, (b) causing the prompt
        delivery of appropriate legal opinions from the Company's counsels in forms
        reasonably satisfactory to the Investor’s counsel, (c) if the Company has
        depository receipts listed or traded on any exchange or inter-dealer quotation
        system, (i) the prompt delivery of instruction letters to the Company's share
        registrar and depository agent to convert the Investor’s securities into
        depository receipts or similar instruments to be deposited in the Investor’s
        brokerage account(s), and (ii) the prompt payment of all costs and fees related
        to such depositary facility, including conversion fees and maintenance fees
        for
        Registrable Securities held by the Investor.  The Company acknowledges that
        time is of the essence with respect to its obligations under this Section
        2.3,
        and that any delay will cause the Investor irreparable harm and constitutes
        a
        material breach of its obligations under this Agreement.

      
        	
                 

              	
                3.

              	
                PUBLIC
                  OFFERING RIGHTS.

              

      

      3.1          General.
        Prior to an initial public offering of
        the Company’s securities, the Company, the Investor and the Founder shall enter
        into a registration rights agreement on customary terms and conditions,
        providing that, among other things, the Investor shall be entitled to request
        three (3) demand registrations after the initial public offering of the
        Company’s securities, an 

       

      
        	
                 

              	
                -6-

              

      

       

      

      

    
      unlimited
        number of registration on either Form S-3 or Form F-3 and an
        unlimited number of piggyback registrations with respect to any registration
        by
        the Company and its securities, subject to customary underwriter cutbacks.
        The
        Company shall bear the costs and expenses of selling shareholders in connection
        with any public offering or registration (other than the underwriter’s
        commission), including the costs and expenses of two (2) counsels for the
        Investor.

      3.2          Rule
        144 Reporting. With a view to making
        available to the Investor the benefits of certain rules and regulations of
        the
        SEC, which may at any time permit the sale of the Registrable Securities
        to the
        public without registration or pursuant to a registration on Form S-3 or
        Form
        F-3, after such time as a public market exists for the Ordinary Shares, the
        Company agrees to:

      (a)          make
        and keep public information available, as those terms are understood
        and defined in Rule 144 under the Securities Act, at all times after the
        effective date of the first registration under the Securities Act filed by
        the
        Company for an offering of its securities to the general public;

      (b)          file
        with the SEC in a timely manner all reports and other documents
        required of the Company under the Securities Act and the Exchange Act (at
        any
        time after it has become subject to such reporting requirements);
        and

      (c)          so
        long as the Investor owns any Registrable Securities, to furnish to
        the Investor forthwith upon request (i) a written statement by the Company
        as to
        its compliance with the reporting requirements of Rule 144 (at any time after
        ninety (90) days after the effective date of the Company’s initial public
        offering), the Securities Act and the Exchange Act (at any time after it
        has
        become subject to such reporting requirements), or its qualification as a
        registrant whose securities may be resold pursuant to Form S-3 or Form F-3
        (at
        any time after it so qualifies), (ii) a copy of the most recent annual or
        quarterly report of the Company, and (iii) such other reports and documents
        of
        the Company as the Investor may reasonably request in availing itself of
        any
        rule or regulation of the SEC that permits the selling of any such securities
        without registration or pursuant to Form S-3 or Form F-3.

      
        	
                 

              	
                4.

              	
                RIGHT
                  OF PARTICIPATION.

              

      

      4.1          General.
        The Investor and any person to which
        rights under this Section 4 have been duly assigned in accordance with Section
        12 (each of the Investor and its assignees being hereinafter referred to
        as a
“Participation Rights Holder”) shall have
        a right of first refusal to purchase a Pro Rata Share of
        all or any part of the New Securities that the Company may from time to time
        issue after the date hereof (the “Right of
        Participation”).

      4.2          Pro
        Rata Share. A Participation Rights Holder’s
“Pro Rata Share”
is
        the
        ratio of (a) the number of Registrable Securities then held by such
        Participation Rights Holder, to (b) the total number of Ordinary Shares
        (assuming conversion of all Convertible Securities but excluding shares issuable
        under unexercised options or warrants into Ordinary Shares) then outstanding
        immediately prior to the issuance of New Securities giving rise to the Right
        of
        Participation. 

       

      
        	
                 

              	
                -7-

              

      

       

      

      

    
      4.3          New
        Securities. “New
        Securities” shall mean any Ordinary Shares, any
        other shares of the Company regardless of designation, or other voting shares
        of
        the Company, whether now authorized or not, and rights, options or warrants
        to
        purchase such Ordinary Shares and securities of any type whatsoever that are, or
        may become, convertible or exchangeable into such Ordinary Shares or other
        voting shares, provided,
however,
        that the term
“New Securities” shall
        not include:

      (a)          Ordinary
        Shares issued under the Purchase and Subscription
        Agreement;

      (b)          securities
        issued in connection with any share split, share dividend or
        other similar event in which all Participation Rights Holders are entitled
        to
        participate on a pro-rata basis;

      (c)          in
        the aggregate up to ten percent (10%) Ordinary Shares (proportionally
        adjusted to reflect any share dividends, share splits, or similar transactions)
        issued or issuable to officers, directors, employees and consultants of the
        Company or its Subsidiaries pursuant to any equity plan or incentive arrangement
        approved by the Board;

      (d)          options,
        warrants and other securities convertible or exercisable into
        Ordinary Shares, issued as part of a Board approved employee share option
        plan;

      (e)          those
        issued as a dividend or distribution on Ordinary Shares or any
        event for which adjustment is made;

      (f)           any
        securities issued pursuant to the acquisition of another corporation
        or entity by the Company by consolidation, merger, purchase of assets, or
        other
        reorganization in which the Company acquires, in a single transaction or
        series
        of related transactions, a majority of the assets, voting power or equity
        ownership of such other corporation or entity; and

      
        	
                 

              	
                (g)

              	
                any
                  securities offered in a Qualified IPO by the
                  Company.

              

      

      4.4          Procedures.
        In the event that the Company
        proposes to undertake an issuance of New Securities in a single transaction
        or a
        series of related transactions, it shall give to each Participation Rights
        Holder a written notice of its intention to issue New Securities (the
“Participation Notice”), describing
        the amount, the type and the price of New Securities and
        the general terms upon which the Company proposes to issue such New Securities.
        Each Participation Rights Holder shall be entitled to purchase such
        Participation Rights Holder’s Pro Rata Share of such New Securities at the price
        and upon the terms and conditions specified in the Participation Notice by
        giving a written notice to the Company and stating therein the number of
        New
        Securities to be purchased (such number shall not exceed such Participation
        Rights Holder’s Pro Rata Share) within twenty (20) Business Days from the date
        of such Participation Notice. If any Participation Rights Holder fails to
        send
        such written notice within the prescribed time period, then the right of
        such
        Participation Rights Holder to purchase its Pro Rata Share hereunder shall
        be
        forfeited.

       

      
        	
                 

              	
                -8-

              

      

       

      

      

    
      4.5          Failure
        to Exercise. In the event Participation
        Rights Holders do not exercise the Right of Participation with respect to
        all
        New Securities described in the Participation Notice, after twenty (20) Business
        Days following the date of the Participation Notice, the Company shall have
        a
        period of sixty (60) days thereafter to sell the New Securities described
        in the
        Participation Notice (with respect to which the Right of Participation was
        not
        fully exercised) at the same or a higher price and upon non-price terms not
        more
        favorable to the purchasers thereof than specified in the Participation Notice.
        In the event that the Company has not issued and sold such New Securities
        within
        such prescribed period, then the Company shall not thereafter issue or sell
        any
        New Securities without first offering such New Securities to the Participation
        Rights Holders pursuant to this Section 4.5.

      4.6          Termination.
        The Right of Participation under
        this Section 4 shall terminate upon the completion of a Qualified
        IPO.

      
        	
                 

              	
                5.

              	
                Restrictions
                  on Transfer. 
                   

              

      

      5.1          General.
        The Founder may not Transfer, directly
        or indirectly, any Shares without the Investor’s prior written approval for
        three (3) years after the Closing (the “Restricted
        Period”).

      5.2          Notice
        of Proposed Transfer. Prior to the Founder
        Transfers any of its Shares, the Founder shall simultaneously deliver to
        the
        Company and the Investor a written notice (the “Transfer Notice”) in the
        form attached
        hereto as Exhibit A,
        stating: (i) the Founder’s bona fide intention to sell or otherwise
        Transfer such Shares (the “Offered
        Shares”); (ii) the name, address and phone
        number of each proposed purchaser or other transferee (“Proposed Transferee”); (iii) the
        aggregate number of the Offered Shares proposed to be Transferred to each
        Proposed Transferee; (iv) the bona fide cash price or, in reasonable
        detail, other consideration for which the Founder proposes to Transfer the
        Offered Shares (the “Offered
        Price”); and (v) the Investor’s right to
        exercise its Right of First Refusal or its Right of Co-Sale with respect
        to the
        Offered Shares.

      
        	
                 

              	
                6.

              	
                Right
                  of First Refusal.

              

      

      6.1          Exercise
        by the Investor.The Investor and its
        affiliated assignees have the Right of First Refusal to purchase all or any
        part
        of the Offered Shares upon the terms and conditions set forth in the Transfer
        Notice; providedthat
        the Investor gives written notice of the
        exercise of such right to the Founder within thirty (30) days after the date
        on
        which the Transfer Notice is, pursuant to Section 5.2 deemed to have been
        delivered to the Investor (the “Refusal
        Period”). Within five (5) days after the expiration
        of the Refusal Period, the Founder will give written notice to the Company
        and
        the Investor specifying the number of Offered Shares that was subscribed
        by the
        Investor exercising its Right of First Refusal (the “Confirmation Notice”). The Confirmation
        Notice shall specify the number of Offered Shares to be purchased by the
        Investor.

      6.2          Purchase
        Price.The purchase price for the Offered
        Shares to be purchased by the Investor exercising its Right of First Refusal
        under this Agreement will be the Offered Price, and will be payable as set
        forth
        in Section 6.3 hereof. If the Offered Price includes consideration other
        than
        cash, the cash equivalent value of the non-cash consideration will be determined
        by the Board in 

       

      
        	
                 

              	
                -9-

              

      

       

      

      

    
      good
        faith, which determination will be binding upon the Company, the
        Investor and the Founder, absent fraud or error.

      6.3          Payment.
        Payment of the purchase price for the
        Offered Shares purchased by the Investor exercising its Right of First Refusal
        will be made within ten (10) days after the later of (i) delivery of the
        Confirmation Notice, or (ii) the end of the Refusal Period. Payment of the
        purchase price will be made, at the option of the Investor, (i) in cash (by
        check or wire transfer), (ii) by cancellation of all or a portion of any
        outstanding indebtedness of the Founder to the Investor, if any, or (iii)
        by any
        combination of the foregoing.

      6.4          Rights
        as a Shareholder. If the Investor
        exercises its Right of First Refusal to purchase the Offered Shares, then,
        upon
        the date that the notice of such exercise by the Investor is deemed delivered
        to
        the Founder pursuant to Section 6.1 hereof, the Founder will have no further
        rights as a holder of the Offered Shares except the right to receive payment
        for
        the Offered Shares from the Investor(s), in accordance with the terms of
        this
        Agreement, and the Founder will forthwith cause all certificate(s) evidencing
        such Offered Shares to be surrendered for Transfer to the Investor.

      6.5          Founder’s
        Right To Transfer. If the Investor has
        not elected to purchase all or any portion of the Offered Shares, then, with
        respect to that portion of Offered Shares that will not be purchased by the
        Investor pursuant to Section 6 hereof, the Right of First Refusal shall not
        apply to such Transfer, and the Founder may Transfer such portion of the
        Offered
        Shares which the Investor has not elected to purchase to any person named
        as a
        purchaser or other Transferee in the Transfer Notice, at the Offered Price
        or at
        a higher price; provided that
        such Transfer shall still be subject to the
        Investor’s Right of Co-Sale as defined in Section 7 hereof; provided further
        that
        such Transfer (i) is consummated within sixty (60) days after the end of
        the
        Refusal Period, (ii) is on the same terms as set forth in the Transfer Notice,
        and (iii) is in accordance with all the terms of this Agreement. If the Offered
        Shares are not so Transferred during such sixty (60) day period, then the
        Founder may not Transfer any of such Offered Shares without complying again
        in
        full with the provisions of this Agreement.

      
        	
                 

              	
                7.

              	
                Investor's
                  Right of Co-Sale.

              

      

      7.1          Exercise
        by the Investor. The Investor shall have
        the right to participate in the sale of the Offered Shares
        (“Right of Co-Sale”),
        which are not being purchased by the Investor pursuant to its Right of First
        Refusal in Section 6 hereof (“Residual
        Shares”), on the same terms and conditions as
        specified in the Transfer Notice. The Investor may sell all or any part of
        the
        Shares held by it equal to the product obtained by multiplying (i) the Residual
        Shares, by (ii) a fraction, the numerator of which shall be the number of
        Shares
        owned by the Investor and the denominator of which shall be the total number
        of
        the issued and outstanding Shares of the Company, calculated immediately
        prior
        to the time of the Transfer. To exercise its rights hereunder, the Investor
        must
        have provided a written notice to the Founder within the Refusal Period
        indicating the number of Shares that it wishes to sell pursuant to this Section
        7.1.

       

       

      
        	
                 

              	
                -10-

              

      

       

      

      

    
      7.2          Closing;
        Consummation of the Co-Sale. Subject to
        compliance with applicable state and federal securities laws, the sale of
        the
        Shares by the Investor pursuant to the Right of Co-Sale shall occur within
        ten
        (10) days after the later of (i) delivery of the Confirmation Notice and
        (ii) expiration of the Refusal Period (the “Co-Sale Closing”). The Investor
        shall
        deliver to the Founder at or before the Co-Sale Closing, one or more
        certificates, properly endorsed for Transfer (or with a duly executed separate
        instrument of transfer, as applicable), representing the number of Shares
        to
        which the Investor is entitled to sell pursuant to this Section 7. At the
        Co-Sale Closing, the Founder shall cause such certificates or other instruments
        to be Transferred and delivered to the Transferee pursuant to the terms and
        conditions specified in the Transfer Notice.

      7.3          Founder’s
        Right To Transfer. If any of the
        Offered Shares remain available after the exercise of the Investor’s Right of
        First Refusal and all Rights of Co-Sale, then the Founder shall be free to
        Transfer, subject to Section 8 below, any such remaining Shares to the
        Proposed Transferee at the Offered Price or a higher price in accordance
        with
        the terms set forth in the Transfer Notice; provided, however,
        that if the Offered Shares are not so
        Transferred during the sixty (60) day period following the deemed delivery
        of
        the Transfer Notice, then the Founder may not Transfer any of such remaining
        Offered Shares without complying again in full with the provisions of this
        Agreement.

      
        	
                 

              	
                8.

              	
                INVESTOR’S
                  DRAG-ALONG RIGHTS

              

      

      8.1          Exercise
        by the Investor. If a Qualified IPO does
        not occur on or before December 31, 2009 and the Investor approves an offer
        by
        any Person or Persons (for purposes of this Section 8, the “Proposed Transferee”) to purchase
        all or
        substantially all of the equity or assets, of the Company, or the business
        conducted by it (the “Drag-Along
        Sale”), then the Investor shall have the right,
        the
“Drag-Along Right”),
        but not the obligation, to require each other Shareholder (each a
“Dragged Shareholder”)
        to vote to approve such sale or to sell to the Proposed Transferee up to
        all the
        Shares or ownership interest in the Company held by such Dragged Shareholder,
        provided that the valuation of the Company at the time of such Drag-Along
        Sale
        is not less than RMB600,000,000 and, unless with the prior written consent
        of
        the Dragged Shareholder. Each Shareholder agrees to take all steps necessary
        to
        enable him or it to comply with the provisions of this Section 8.1, including,
        but not limited to, voting in favor of such Drag-Along Sale, converting
        Convertible Securities into Ordinary Shares and transferring its Shares or
        ownership interest in the Company involved in such Drag-Along Sale.
        Notwithstanding any provision to the contrary, the share Transfer restrictions
        as provided in Section 5, Section 6 and Section 7 shall not apply to any
        Transfers made pursuant to this Section 8.

      8.2          Closing;
        Consummation of Drag-Along Sale. To
        exercise a Drag-Along Right, the Investor shall give each Dragged Shareholder
        and the Company a written notice (for purposes of this Section 8.2, a
“Drag-Along Notice”)
        containing (a) the name and address of the Proposed Transferee and (b) the
        proposed purchase price, terms of payment and other material terms and
        conditions of the Proposed Transferee’s offer. Each Dragged Shareholder shall
        thereafter be obligated to sell the Ordinary Shares subject to such Drag-Along
        Notice, providedthat
        the sale to the Proposed Transferee is
        consummated within sixty (60) days of delivery of such Drag-Along Notice.
        If the
        sale is not consummated within such 60-day period, then each Dragged Shareholder
        shall no longer be 

       

      
        	
                 

              	
                -11-

              

      

       

      

      

    
      obligated
        to sell such Dragged Shareholder’s Shares pursuant to that
        specific Drag-Along Right but shall remain subject to the provisions of this
        Section 8. 

      8.3          Terms
        and Conditions. Any such sale or
        disposition by the Dragged Shareholders shall be on the same terms and
        conditions, including, without limitation, as to the form of consideration,
        as
        the proposed Drag-Along Sale by the Investor. The Dragged Shareholders shall
        be
        required to make customary and usual representations and warranties in
        connection with the Drag-Along Sale, including, without limitation, as to
        their
        ownership and authority to sell, free of all liens, claims and encumbrances
        of
        any kind, the Shares proposed to be Transferred or sold by such persons or
        entities and shall, without limitation as to time, indemnify and hold harmless
        to the full extent permitted by law, the Investor and the third party purchasers
        against all obligations, cost, damages, expenses, losses, judgments,
        assessments, or other liabilities including, without limitation, any special,
        indirect, consequential or punitive damages, any court costs, costs of
        preparation, attorney’s fees or expenses, or any accountant’s or expert witness’
fees arising out of, in connection with or related to any breach or alleged
        breach of any representation or warranty made by, or agreements, understandings
        or covenants of the Dragged Shareholders as the case may be, under the terms
        of
        the agreements relating to such Drag-Along Sale. 

      8.4          Deemed
        Transfers. At the closing of the
        Drag-Along Sale, each Dragged Shareholder shall deliver or cause to be delivered
        a certificate or certificates evidencing its Shares to be included in the
        Drag-Along Sale, duly endorsed for Transfer with signatures guaranteed, to
        such
        Proposed Transferee in the manner and at the address indicated in the Drag-Along
        Notice. If a Dragged Shareholder fails to deliver certificates evidencing
        its
        Shares as described in this Section 8 at such closing, it shall for all purposes
        be deemed no longer to be a shareholder of the Company (with the record books
        of
        the Company including, as appropriate, its register of shareholders updated
        to
        reflect such status), shall have no voting rights, shall not be entitled
        to any
        dividends or other distributions with respect to any Shares held by them,
        shall
        have no other rights or privileges as a shareholder of the Company and, in
        the
        event of liquidation of the Company, its rights with respect to any
        consideration it would have received if it had complied with this Section
        8, if
        any, shall be subordinate to the rights of any equity holder. In addition,
        upon
        demand by the Investor and in addition to any other rights or remedies of
        the
        Investor granted herein or otherwise, the Company shall stop any subsequent
        Transfer of any such Shares held by the Dragged Shareholders.

      
        	
                 

              	
                9.

              	
                Conditions
                  to Valid Transfer.

              

      

      9.1          Generally.
        Any attempt by the Founder to Transfer
        any Shares in violation of any provision of this Agreement will be null and
        void, shall not be recorded on the books of the Company or its transfer agent
        and shall not be recognized by the Company. Each party hereto acknowledges
        and
        agrees that any breach of this Agreement would result in substantial harm
        to the
        other parties hereto for which monetary damages alone could not adequately
        compensate. Therefore, the parties hereto unconditionally and irrevocably
        agree
        that any non-breaching party hereto shall be entitled to seek protective
        orders,
        injunctive relief and other remedies available at law or in equity (including,
        without limitation, seeking specific performance or the rescission of purchases,
        sales and other Transfers of Shares not made in strict compliance with this
        Agreement).

       

      
        	
                 

              	
                -12-

              

      

       

      

      

    
      9.2          Conditions.
        No securities shall be Transferred by
        the Founder unless (i) such Transfer is made in compliance with all of the
        terms of this Agreement and all applicable federal and state securities laws
        and
        (ii) prior to such Transfer, the transferee or transferees sign a
        counterpart to this Agreement pursuant to which it or they agree to be bound
        by
        the terms of this Agreement. The Company will not be required to
        (i) transfer on its books any Shares that have been sold, gifted or
        otherwise Transferred in violation of any provisions of this Agreement, or
        (ii) to treat as owner of such Shares, or accord the right to vote or pay
        dividends to any purchaser, donee or other transferee to whom such Shares
        may
        have been so Transferred. 

      9.3          Put
        Right. If the Founder Transfers any Shares in
        contravention of the Right of Co-Sale under this Agreement (a
“Prohibited Transfer”),
        or the Proposed Transferee is unwilling to purchase any securities from the
        Investor, the Investor may, by delivery of written notice to the Founder
        (a
“Put Notice”) within
        thirty (30) days after the date on which the Investor becomes aware of the
        Prohibited Transfer or the terms thereof, require the Founder to purchase
        from
        the Investor the number of Shares that is equal to the number of Residual
        Shares
        the Investor would have been entitled to Transfer to the purchaser (the
“Put Shares”). Such
        sale shall be made on the following terms and conditions:

      (a)          The
        price per share at which the Put Shares are to be sold to the Founder
        shall be equal to the price per share that the Investor would have received
        at
        the Co-Sale Closing of such Prohibited Transfer if the Investor had sold
        such
        Put Shares at the Co-Sale Closing. Such purchase price of the Put Shares
        shall
        be paid in cash or such other consideration as the Founder received in the
        Prohibited Transfer or at the Co-Sale Closing. The Founder shall also reimburse
        the Investor for any and all reasonable fees and expenses, including, but
        not
        limited to, legal fees and expenses, incurred pursuant to the exercise or
        attempted exercise of the Investor’s Rights of Co-Sale pursuant to Section 7 or
        in the exercise of its rights under this Section 9 with respect to the Put
        Shares.

      (b)          The
        Put Shares to be sold to the Founder shall be of the same class or
        type as Transferred in the Prohibited Transfer or at the Co-Sale Closing
        if the
        Investor then owns securities of such class or type. If the Investor does
        not
        own any of such class or type, the Put Shares shall be Ordinary
        Shares.

      (c)          The
        closing of such sale to the Founder will occur within ten (10) days
        after the date of the Investor’s Put Notice to the Founder. At such closing, the
        Investor shall deliver to the Founder the certificate or certificates
        representing the Put Shares to be sold, each certificate to be properly endorsed
        for transfer (or with a duly executed separate instrument of transfer, as
        applicable), and immediately upon receipt thereof, the Founder shall pay
        the
        aggregate purchase price therefor, and the amount of reimbursable fees and
        expenses, as specified in Section 9.3(a).

      
        	
                 

              	
                10.

              	
                Restrictive
                  Legend and Stop Transfer Orders. 
                   

              

      

      10.1       Legend.
        Each Shareholder understands and agrees
        that the Company will cause the legend set forth below, or a legend
        substantially equivalent thereto, to be placed upon any certificate(s) or
        other
        documents or instruments evidencing ownership of Shares:

       

      
        	
                 

              	
                -13-

              

      

       

      

      

    
      THE
        SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AND MAY ONLY BE
        SOLD, DISPOSED OF OR OTHERWISE TRANSFERRED IN COMPLIANCE WITH CERTAIN RIGHTS
        OF
        FIRST REFUSAL AND RIGHTS OF CO-SALE AS SET FORTH IN A SHAREHOLDERS AGREEMENT
        ENTERED INTO BY THE HOLDER OF THESE SHARES, THE COMPANY AND CERTAIN SHAREHOLDERS
        OF THE COMPANY. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE
        OF
        THE COMPANY. SUCH RIGHTS OF FIRST REFUSAL AND RIGHTS OF CO-SALE ARE BINDING
        ON
        CERTAIN TRANSFEREES OF THESE SHARES WHO ARE PARTIES TO THE SHAREHOLDERS
        AGREEMENT.

       

      10.2        Stop
        Transfer Instructions. In order to ensure
        compliance with the restrictions referred to herein, the Founder agrees that
        the
        Company may issue appropriate “stop transfer” certificates or instructions in
        the event of a Transfer in violation of any provision of this Agreement and
        that
        it may make appropriate notations to the same effect in its
        records.

      11.          TERMINATION.
        The Investor’s Right of First
        Refusal and Right of Co-Sale shall terminate upon the closing of a Qualified
        IPO. 

      
        	
                 

              	
                12.

              	
                ASSIGNMENT
                  AND AMENDMENT.

              

      

      12.1       Assignment.
        Notwithstanding anything herein to
        the contrary, the rights of the Investor under Sections 2.1 (prior to a
        Qualified IPO), 2.2 and 2.3 are transferable to any Affiliate of the Investor
        or
        to any person who holds or is acquiring Shares immediately after the Closing
        in
        a Transfer which does not breach any express provision of this Agreement;
        provided, however,
        that the Company is given a written
        notice stating the name and address of the assignee and identifying the
        securities of the Company as to which the rights in question are being assigned;
        and provided further that any
        such assignee shall receive such assigned rights, subject to all the terms
        and
        conditions of this Agreement, including the provisions of this Section 12.
        The
        registration rights of the Investor under Section 3 are fully assignable
        to any
        Affiliate of such Holder or to any person who holds or is acquiring Registrable
        Securities in a permitted Transfer; provided, however,
        that the Company is given a written
        notice stating the name and address of the assignee and identifying the
        securities of the Company as to which the rights in question are being assigned;
        and provided further that any
        such assignee shall receive such assigned rights, subject to all the terms
        and
        conditions of this Agreement, including the provisions of this Section 12.
        The
        Right of Participation of the Investor under Section 4 hereof is fully
        assignable to the Investor’s Affiliates or to any person who holds or is
        acquiring Ordinary Shares immediately after the Closing in a Transfer which
        does
        not breach any express provision of this Agreement; provided, however
        that any such assignee shall receive such
        assigned rights, subject to all the terms and conditions of this Agreement,
        including the provisions of this Section 12. The rights of the Investor
        under Section 6 are assignable prior to a Qualified IPO to any Affiliate of
        the Investor or to any person who holds or is acquiring Shares in a Transfer
        which does not breach any express provision of this Agreement; provided, however,
        that the Company and the Founder are
        given a written notice stating the name and address of the assignee and
provided further that any such
        assignee shall receive such assigned rights, subject to all the terms and
        conditions of this Agreement, including the provisions of this Section
        12.

       

      
        	
                 

              	
                -14-

              

      

       

      

      

    
      12.2       Deed
        of
        Adherence. For any Transfer of Shares to be deemed
        effective, the transferee shall assume the obligations of the transferor
        under
        this Agreement by executing and delivering to the Company a Deed of Adherence
        substantially in the form attached hereto as Exhibit
        B. Upon the execution and delivery of a Deed of
        Adherence by any transferee, such transferee shall be deemed to be a
        Shareholder, hereunder, as appropriate.

      12.3        No
        restriction or encumbrance on Ordinary Shares. The
        Transfer and assignment of Ordinary Shares or any right of the Investor under
        this Agreement or any other Transaction Agreements shall not be subject to
        any
        Rights of First Refusal or Co-Sale Rights or other restrictions or encumbrances
        on Transfer or assignment.

      12.4       Amendment
        of Rights. A provision of this
        Agreement may only be amended and the observance thereof may only be waived
        (either generally or in a particular instance and either retroactively or
        prospectively) with the written consent of the Company, the Investor and
        the
        Founder. Any amendment or waiver effected in accordance with this Section
        12.4
        shall be binding upon each party hereto and their respective
        successors.

      
        	
                 

              	
                13.

              	
                PROTECTIVE
                  PROVISIONS.

              

      

      13.1       Acts
        of
        the Company (General). Notwithstanding anything to the
        contrary in this Agreement, any action (whether in a single transaction or
        a
        series of related transactions) that effects or approves any of the following
        transactions involving the Company or any of its Subsidiaries shall require
        approval of a majority of the Board of the Company:

      (a)          any
        guarantee or agreement by the Company or any of its Subsidiaries to
        indemnify any other person against any loss or liability of any person’s
        obligations, except for the furtherance of the commercial benefits of the
        Company; 

      (b)          any
        borrowing of money, obtaining of financial facilities (including
        factoring, facility letters, undertakings, guarantees, indemnities, comfort
        letters, etc.) or incurrence of indebtedness by the Company or any of its
        Subsidiaries (including indebtedness in the form of assumption or guaranty
        of
        borrowing or indebtedness of any other person) which individually or together
        with all related borrowing equal to or exceed forty percent (40%) of the
        net
        debt equity ratio of the Company or any of its Subsidiaries at any
        time;

      (c)          any
        material change to the fundamental business character, plan or
        strategy of the Company or any of its Subsidiaries as now carried
        out;

      (d)          any
        investment in the securities or shares or other rights of any
        company;

      (e)          any
        purchase, lease, sale or other transaction by the Company or any of
        its Subsidiaries involving real property;

       

      
        	
                 

              	
                -15-

              

      

       

      

      

    
      (f)          any
        fee or monetary transaction or arrangement, including the acquisition
        or disposal of property or procurement of service, between the Company or
        any of
        its Subsidiaries and any of its shareholder or its Affiliate; 

      (g)          any
        change of the auditors of the Company and/or any of its Subsidiaries
        or any material change in the commencement date of the financial year of
        the
        Company or the relevant Subsidiary;

      (h)          any
        adoption, change or announcement of an employee share option plan of
        the Company; 

      (i)           any
        increase or decrease in the authorized number of the Ordinary Shares,
        allotment or issuance of any additional Ordinary Shares, amendment of the
        Company’s Restated Articles in a manner that adversely affects the rights of the
        holders of the Ordinary Shares; amendment of or change in the rights,
        preferences, privileges or powers of, or the restrictions provided for, the
        benefit of the holders of the Ordinary Shares;

      (j)           the
        authorization, creation or issuance of shares of any class of capital
        stock having preferences superior to or on a parity with the holders of the
        Ordinary Shares in liquidation, redemption, or dividend rights or other rights
        or privileges;

      (k)          any
        change in the authorized number, manner of election or term of the
        office of directors of the Company;

      (l)           the
        declaration or payment of any dividend or distribution of profits on
        any Shares ranking junior to the Ordinary Shares in liquidation, redemption,
        or
        dividend rights or privileges; or the redemption and repurchase of any Shares
        junior to the Ordinary Shares in liquidation, redemption, or dividend rights
        or
        privileges except for repurchases of Shares pursuant to a contractual right
        of
        repurchase upon termination of employment or service in a bona fide employment
        or service agreement;

      (m)         any
        merger, acquisition, consolidation, reorganization or other
        transaction of or involving one (1) or more other companies in which the
        shareholders of the Company immediately prior thereto shall not hold a majority
        of the outstanding voting power of each surviving or acquiring company pro-rata
        immediately thereafter;

      (n)          the
        sale, transfer (including a transfer by way of a spin-off, split-off
        or business separation) or disposition of the whole or a substantial part
        of the
        business, undertaking, goodwill, assets or intellectual property of the Company
        and/or any of its Subsidiaries, including the sale, transfer or other
        disposition of a subsidiary or the grant of an exclusive license to intellectual
        property;

      (o)          any
        resolution for the winding up, liquidation or dissolution of the
        Company and/or any of its Subsidiaries, application for the appointment of
        a
        receiver, manager or judicial manager or like officer or initiation of similar
        insolvency-related proceedings of which any of the Company or its Subsidiaries
        is the subject company;

       

      
        	
                 

              	
                -16-

              

      

       

      

      

    
      (p)         the
        creation of any mortgage, pledge, hypothecation, lien or charge
        (whether by way of fixed or floating charge, mortgage or other security)
        or
        other security interest on all or substantial part of the undertaking, assets,
        rights or properties (tangible or intangible) of the Company;

      (q)          any
        delegation of authority in respect of any of the foregoing matters to
        any committee of the Board; or

      (r)           any
        agreement, any commitment or the adoption of any corporate resolution
        to do any of the foregoing matters.

      13.2        Notwithstanding
        anything to the contrary in this Agreement, for as long
        as any Ordinary Share is outstanding, any alteration or amendment to the
        Restated Articles or any other charter documents of the Company or any of
        its
        Subsidiaries shall require the approval of the Investor.

      
        	
                 

              	
                14.

              	
                BOARD
                  MATTERS.

              

      

      14.1       Designation
        Right. The Board of the Company shall
        consist of not more than three (3) directors. The Investor shall be entitled
        to
        designate two (2) directors to the Board of the Company (each, an
“Investor Director” and
        collectively, the “Investor
        Directors”) and the Founder shall be entitled to
        designate one (1) director to the Board.

      14.2       Board
        Quorum; Meetings; Management, etc. The Company’s
        Restated Sections shall provide for a quorum (which shall exist at the time
        of
        the voting as well as the attendance of the Board meeting) of the Board for
        three (3) directors. Notices and agendas of the Board meetings as well as
        copies
        of all board papers shall be sent to all the relevant directors and to the
        Shareholders at least ten (10) Business Days prior to the relevant Board
        meeting, except for emergency Board meeting. The Company shall hold Board
        meetings at least once a quarter after Closing. Except for any contrary
        provision in the Transaction Agreements or the relevant laws, the Company
        shall
        be managed and controlled by the Board.

      14.3        Waiver.
        The Company acknowledges that the
        Investor will likely have, from time to time, information that may be of
        interest to the Company or its Subsidiaries (“Information”) regarding
        a wide variety of
        matters including (1) the Investor’s technologies, plans and services, and plans
        and strategies relating thereto, (2) current and future investments the Investor
        has made, may make, may consider or may become aware of with respect to other
        companies and other technologies, products and services, including technologies,
        products and services that may be competitive with those of the Company or
        any
        of its Subsidiaries, and (3) developments with respect to the technologies,
        products and services, and plans and strategies relating thereto, of other
        companies, including companies that may be competitive with the Company or
        any
        of its Subsidiaries. The Company recognizes that a portion of such Information
        may be of interest to the Company or any of its Subsidiaries. Such Information
        may or may not be known by the Investor Directors. The Company, as a material
        part of the consideration for this Agreement, agrees that the Investor Directors
        shall not have any duty to disclose any Information to the Company or any
        of its
        Subsidiaries, or permit the Company or any of its Subsidiaries to participate
        in
        any projects or 

       

      
        	
                 

              	
                -17-

              

      

       

      

      

    
      investments
        based on any Information, or otherwise to take advantage of
        any opportunity that may be of interest to the Company or any of its
        Subsidiaries if it were aware of such Information, and hereby waives, to
        the
        extent permitted by law, any claim based on the corporate opportunity doctrine
        or otherwise that could limit the Investor’s ability to pursue opportunities
        based on such Information or that would require the Investor, any
        representative, the Investor Directors to disclose any such Information to
        the
        Company or any of its Subsidiaries or offer any opportunity relating thereto
        to
        the Company or any of its Subsidiaries.

      14.4       Director
        Expenses. The Company shall reimburse each director of
        the Board for all reasonable expenses incurred in connection with Board duties
        and meetings. 

      14.5       Assignment
        and Termination. The rights of the
        Investor set forth in this Section 14 are fully assignable to any person
        who holds or is acquiring the Ordinary Shares in a Transfer which does not
        breach any express provision of this Agreement; provided, however,
        that the Company is given a written
        notice stating the name and address of the assignee and identifying the
        securities of the Company as to which the rights in question are being assigned;
        provided further, that the
        transferee executes and delivers a Deed of Adherence. The rights of the Investor
        in this Section 14 shall terminate upon completion of a Qualified
        IPO.

      
        	
                 

              	
                15.

              	
                CONFIDENTIALITY
                  AND NON-DISCLOSURE.

              

      

      15.1       Disclosure
        of Terms. The terms and conditions of
        this Agreement and any other Transaction Agreements (collectively, the
“Terms”), including
        their existence, shall be considered confidential information and shall not
        be
        disclosed by any party hereto to any third party without the consent of all
        other parties except in accordance with the provisions set forth
        below.

      15.2       Legally
        Compelled Disclosure. In the event that any Shareholder
        or any of its Affiliates is requested or becomes legally compelled (including
        without limitation, pursuant to securities laws and regulations of any
        jurisdiction) to disclose the existence of this Agreement or the content
        of any
        of the Terms in contravention of the provisions of this Section 15.2, such
        Shareholder has the right to make such disclosure in its sole discretion
        and
        without giving prior written notice to any other party hereto.

      15.3        Other
        Exceptions. Notwithstanding any other
        provision of this Section 15, the confidentiality obligations of the parties
        shall not apply to: (i) information which a disclosing party learns from
        a third
        party having the right to make the disclosure, provided the disclosing party
        complies with any restrictions imposed by the third party; (ii) information
        which is in the disclosing party’s possession prior to the time of disclosure by
        the protected party and not acquired by the disclosing party under a
        confidentiality obligation; (iii) information which enters the public domain
        without breach of confidentiality by the disclosing party; or (iv) any
        disclosure by a party to its employees, officers, bankers, partners,
        accountants, attorneys or other professional advisers, in each case only
        where
        such Persons are under appropriate confidentiality obligations.

      
        	
                 

              	
                15.4

              	
                Press
                  Releases.

              

      

       

      
        	
                 

              	
                -18-

              

      

       

      

      

    
      (a)         The
        Founder shall not issue any press release or make any public
        announcement with respect to this Agreement or any other Transaction Agreement
        or the transactions contemplated hereby without the prior written consent
        of the
        Investor.

      (b)          The
        Investor may issue any press release or make any public announcement
        as it deems to be appropriate with respect to this Agreement or any other
        Transaction Agreement or the transactions contemplated hereby at its own
        discretion.

      15.5        Other
        Information. The provisions of this Article
        15 shall survive the termination of this Agreement and shall be in addition
        to,
        and not in substitution for, the provisions of any separate non-disclosure
        agreement executed by any of the parties hereto with respect to the transactions
        contemplated hereby.

      
        	
                 

              	
                16.

              	
                Miscellaneous
                  Provisions.   

              

      

      16.1       Governing
        Law. This Agreement shall be governed
        in all respects by the laws of Hong Kong.

      16.2        Survival.
        The representations, warranties,
        covenants and agreements made herein shall survive any due diligence
        investigation made by any party hereto and shall survive the
        Closing.

      16.3        Successors
        and Assigns. Except as otherwise
        expressly provided herein, the provisions hereof shall inure to the benefit
        of,
        and be binding upon, the successors, permitted assigns, heirs, executors
        and
        administrators of the parties hereto. This Agreement and the rights and
        obligations herein may be assigned by the Investor to any Affiliate of the
        Investor. None of the Founder or the Company may assign its rights or delegate
        its obligations under this Agreement without the written consent of the
        Investor.

      16.4       Entire
        Agreement. This Agreement and the schedules and exhibits
        hereto and thereto and the Transaction Agreements, which are hereby expressly
        incorporated herein by this reference, constitute the entire understanding
        and
        agreement between the parties with regard to the subjects hereof and thereof.
        

      16.5        Notices.
        Except as may be otherwise provided
        herein, all notices, requests, waivers and other communications made pursuant
        to
        this Agreement shall be in writing and shall be conclusively deemed to have
        been
        duly given (i) when hand delivered to the other party; (ii) when sent by
        facsimile at the number set forth below, upon a successful transmission report
        being generated by the sender’s machine; or (iii) three (3) Business Days after
        deposit with an internationally-recognized overnight delivery service, postage
        prepaid, addressed to the parties as set forth in Exhibit
        C with next-business-day delivery guaranteed, provided
        that the sending party receives a confirmation of delivery from the delivery
        service provider. Each person making a communication hereunder via facsimile
        shall promptly confirm by telephone with the person to whom such communication
        was addressed regarding each communication made by it via facsimile pursuant
        to
        this Article 16., but the absence of such confirmation shall not affect the
        validity of any such communication. A party may change or supplement the
        addresses given above, or designate 

       

      
        	
                 

              	
                -19-

              

      

       

      

      

    
      additional
        addresses, for purposes of this Section 16.5 by giving the
        other party written notice of the new address in the manner set forth
        above.

      16.6       Amendments
        and Waivers. This Agreement may be
        amended only with the prior written consent of the Investor.

      16.7       Delays
        or Omissions. No delay or omission to exercise any
        right, power or remedy accruing to any party upon any breach or default of
        any
        other party hereto under this Agreement, shall impair any such right, power
        or
        remedy of the aggrieved party nor shall it be construed to be a waiver of
        any
        such breach or default, or an acquiescence therein, or of any similar breach
        of
        default thereafter occurring; nor shall any waiver of any other breach or
        default theretofore or thereafter occurring. Any waiver, permit, consent
        or
        approval of any kind or character on the part of any party of any breach
        of
        default under this Agreement or any waiver on the part of any party of any
        provisions or conditions of this Agreement, must be in writing and shall
        be
        effective only to the extent specifically set forth in such writing. All
        remedies, either under this Agreement, or by law or otherwise afforded to
        the
        parties shall be cumulative and not alternative.

      16.8        Interpretation;
        Titles and Subtitles. This
        Agreement shall be construed according to its fair language. The rule of
        construction to the effect that ambiguities are to be resolved against the
        drafting party shall not be employed in interpreting this Agreement. The
        titles
        of the sections and subsections of this Agreement are for convenience of
        reference only and are not to be considered in construing this
        Agreement.

      16.9      Counterparts.
        This Agreement may be executed in
        any number of counterparts, each of which shall be an original, but all of
        which
        together shall constitute one instrument.

      16.10     Severability.
        Should any provision of this
        Agreement be determined to be illegal or unenforceable, such determination
        shall
        not affect the remaining provisions of this Agreement.

      16.11     Pronouns.
        All pronouns and any variations thereof
        are deemed to refer to the masculine, feminine, neuter, singular or plural,
        as
        the identity of the Person or Persons may require.

      16.12     Dispute
        Resolution. Any
        dispute, controversy or claim arising out of or relating to this
        Agreement, or the breach, termination or invalidity thereof, shall be settled
        by
        arbitration in accordance with the UNCITRAL arbitration rules then in effect.
        The appointing authority shall be Hong Kong International Arbitration Centre
        (“HKIAC”). The place
        of
        arbitration shall be in Hong Kong at HKIAC. There shall be three (3)
        arbitrators. The language to be used in the arbitral proceedings shall be
        English. Any such arbitration shall be administered by HKIAC in accordance
        with
        HKIAC procedures for arbitration in force at the date of this Agreement
        including such additions to the UNCITRAL arbitration rules as are therein
        contained.

      16.13     Obligations
        of the Founder. Mr. Fan Hui Yang,
        jointly and severally, with the Founder, accepts all obligations of the Founder
        under this Agreement and shall procure the Founder to take all necessary
        actions
        to effect the covenants hereunder.

       

      
        	
                 

              	
                -20-

              

      

       

      

      

    
      16.14     Continuity
        of Other Restrictions. Any Shares not
        purchased by the Investor pursuant to its Right of First Refusal hereunder
        will
        continue to be subject to all other restrictions imposed upon such Shares
        hereunder and by law, including any restrictions imposed under the Restated
        Articles, or by agreement.

      16.15     Further
        Assurances. Each party hereto agrees to
        execute and deliver, by the proper exercise of its corporate, limited liability
        company, partnership or other powers, all such other and additional instruments
        and documents and do all such other acts and things as may be necessary to
        more
        fully effectuatethis Agreement.

      16.16     Conflict.
        In the event of any conflict between
        the terms of this Agreement and the Company’s Restated Articles, the terms of
        this Agreement shall control. In the event of any conflict between the terms
        of
        this Agreement and any other agreement to which a Shareholder is a party
        or by
        which such Shareholder is bound, the terms of this Agreement will control.
        In
        the event of any conflict between the Company’s books and records and this
        Agreement or any notice delivered hereunder, the Company’s books and records
        will control absent fraud or error.

      16.17     Attorney’s
        Fees. In the event that any suit or
        action is instituted to enforce any provision in this Agreement, the prevailing
        party in such dispute shall be entitled to recover from the losing party
        all
        fees, costs and expenses of enforcing any right of such prevailing party
        under
        or with respect to this Agreement, including without limitation, such reasonable
        fees and expenses of attorneys and accountants, which shall include, without
        limitation, all fees, costs and expenses of appeals.

      16.18     Telecopy
        Execution and Delivery. A facsimile,
        telecopy or other reproduction of this Agreement may be executed by one or
        more
        parties hereto and delivered by such party by facsimile or any similar
        electronic transmission device pursuant to which the signature of or on behalf
        of such party can be seen. Such execution and delivery shall be considered
        valid, binding and effective for all purposes. At the request of any party
        hereto, all parties hereto agree to execute and deliver an original of this
        Agreement as well as any facsimile, telecopy or other reproduction
        hereof.

      16.19       Share
        Split. All references to numbers of Shares in this
        Agreement shall be appropriately adjusted to reflect any share splits, share
        dividends, bonus issues, combinations, subdivisions, consolidations,
        recapitalizations and the like affecting the Ordinary Shares occurring after
        the
        date of this Agreement.

      [Signature
        Page Follows]

       

      
        	
                 

              	
                -21-

              

      

       

      

      

    
      IN
        WITNESS WHEREOF, the Parties hereto have executed this Agreement on
        the day and year herein above first written.

       

      
        	
                Ixworth
                  Enterprises Limited

                 

                By:
/s/
                  Wang Shuang

                Name:
                  Wang Shuang

                Title:
  Director

                 

              	
                 

              
	
                Zhi
                  Sheng Limited 

                 

                By:
/s/
                  Fan Hui Yang

                Name:
                  Fan Hui Yang

                Title:
  Director

                 

                 

                 

              	
                 

              
	
                Ample
                  Spring Holdings Limited

                 

                By:
/s/
                  Fan Hui Yang

                Name:
                  Fan Hui Yang

                Title:
  Director

              	
                 

              

      

       

       

      Fan
        Hui Yang

       

      Signature:
/s/
        Fan Hui Yang

       

      [Signature
        Page of Shareholders Agreement]

       

       

      

      

    
      EXHIBITA

      TRANSFER
        NOTICE

      I/We,
        ____________, wish to transfer ____________ (indicate number and
        class and, if applicable, series of the shares in question) shares of Ample
        Spring Holdings Limited (the “Company”) (the
“Shares”) pursuant to a (please check one): sale
        (  )
        other (  ) (please describe)                                           
                                       
                                                                                                                                                               .

      I
        propose to transfer Shares to the following entities and
        individuals:

      
        	
                1.           Proposed
                  Transferee #1
[Address]
[Phone
                  Number]

              	
                [amount,
                  type and price of shares]

              
	
                2.           Proposed
                  Transferee #2
[Address]
[Phone
                  Number]

              	
                [amount,
                  type and price of shares]

              
	
                3.           Proposed
                  Transferee #3
[Address]
[Phone
                  Number]

              	
                [amount,
                  type and price of shares]

              

      

      The
        cash consideration for Shares totals $________. The fair market value
        of the non-cash consideration for Shares, if any, as of the date of this
        Notice
        totals $________. 

      
        	
                 

              	
                The
                  non-cash consideration, if any, consists of (please describe in
                  reasonable detail):

                ___________________________________________________________

                ___________________________________________________________

              

      

      .

      Pursuant
        to the Shareholders Agreement, dated ______________, 2007, I/We
        write to inform you of your Right of First Refusal and your Right of Co-Sale
        with respect to Shares. If you choose to do so, you may exercise one (but
        not
        both) of these rights with respect to Shares by returning this Notice to
        me/us,
        at the address below, with a copy to the Company. If you decline your right
        to
        do so, you need not return anything.

      
        	
                 

              	
                I/We
                  exercise my Right of First Refusal

              	
                 ̈

              	
                
                

              

      

      
        	
                 

              	
                I/We
                  exercise my Right of Co-Sale

              	
                 ̈

              	
                
                

              

      

      I/We
        wish to (circle one, not both) buy/sell ________ shares of ________
        the Company.

      I/WE
        MUST RECEIVE YOUR NOTICE BY 30 DAYS
        AFTER NOTICE IF YOU INTEND TO EXERCISE
        YOUR RIGHT OF FIRST REFUSAL OR IF YOU INTEND TO EXERCISE YOUR RIGHT OF CO-SALE.
        THERE IS NO EXTENSION OF THIS DEADLINE.

      [Founder’s
        Address and Name]

      [Company’s
        Address and Contact]

       

      

      

    
      EXHIBIT
        B

      DEED
        OF ADHERENCE

      This
        Deed of Adherence (this “Deed of
        Adherence”) is executed as a deed by the
        undersigned (the “New
        Shareholder”) pursuant to the terms of that certain
        Shareholders Agreement dated April ____, 2007 (the “Agreement”) by and
        among Ample Spring
        Holdings Limited, a company incorporated under the laws of the British Virgin
        Islands (the “Company”)
        and certain of its shareholders, and in consideration of the Shares (as defined
        below) subscribed for, pledged to, transferred to or issued to the New
        Shareholder and other good and valuable consideration, the receipt and
        sufficiency of which are hereby acknowledged. Capitalized terms used but
        not
        defined herein shall have the respective meanings ascribed to such terms
        in the
        Agreement. 

      NOW
        THIS DEED WITNESSES as follows:

       

      1.            Acknowledgement.  
The
        New Shareholder
        acknowledges that Transferee is acquiring [number] [Preferred/Common] shares
        of
        the Company (the “Shares”), subject
        to the terms and conditions of the Agreement.

      2.            Agreement.  
Immediately
        upon transfer
        or issuance of the Shares, the New Shareholder (i) agrees that the Shares
        acquired by New Shareholder shall be bound by and subject to the terms of
        the
        Agreement applicable to the Founder (as defined in the Agreement), and (ii)
        hereby adopts the Agreement with the same force and effect as if the New
        Shareholder were originally the Founder.

      3.            Notice.  
Any
        notice required or permitted by the Agreement shall be given to the New
        Shareholder at the address listed beside the New Shareholder’s signature
        below.

      4.            Governing
        Law.   This Deed of Adherence
        is governed by, and shall be construed in all respects in accordance with,
        Hong
        Kong law.

      IN
        WITNESS whereof the Transferee has executed this Deed of Adherence on
        ________, 20__.

       

      

      

    
      If
        the Transferee is an individual

       

      
        	
                 

              	
                SIGNED,
                  SEALED AND DELIVERED

              	
                )

              

      

      
        	
                 

              	
                by
                  [Name of the Individual]

              	
                )

              

      

      
        	
                 

              	
                in
                  the presence of:

              	
                )

              

      

      
        	
                 

              	
                Address:............................................
                   

              	
                )

              

      

      
        	
                 

              	
                Fax:

              	
                )

              

      

       

      OR

       

      If
        the Transferee is a company

       

      
        	
                 

              	
                SIGNED,
                  SEALED AND DELIVERED

              	
                )

              

      

      
        	
                 

              	
                by
                  [Name of the Company]

              	
                )

              

      

      
        	
                 

              	
                and
                  SIGNED by:

              	
                )

              

      

      
        	
                 

              	
                in
                  the presence of:

              	
                )

              

      

      
        	
                 

              	
                Address:............................................ 

              	
                )

              

      

      
        	
                 

              	
                Fax:

              	
                )

              

      

       

      

      

    
      Exhibit
        C

      Notice
        Addresses

       

      
        	
                To
                  the Investor:

              	
                Suites
                  1705-6,
17/F, Two Chinachem Exchange Square,
338
                  King’s Road,
North Point, Hong Kong
 
Attn: Tommy Siu Lun
                  Fork
Fax No.: (852) 2868 4483
 

                
                

              
	
                To
                  Mr. Fan Hui Yang and the
Founder:

              	
                Floor
                  14, Building B, Jinyun Plaza,
No. 43 Xizhimen North
                  Street,
Haidian District,
Beijing,
                  PRC
 
Attn:           Zhou
                  Peiji
Fax No.:    (8610)
                  58365355
 
 

              
	
                To
                  the Company:

              	
                Floor
                  14, Building B, Jinyun Plaza,
No. 43 Xizhimen North
                  Street,
Haidian District,
Beijing,
                  PRC
 
Attn:           Zhou
                  Peiji
Fax No.:    (8610)
                  58365355

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