Document:

Stock Purchase Agreement

 Exhibit 10.1 
  

  
 STOCK PURCHASE AGREEMENT 
  
 among 
  
 SOHU.COM LIMITED 
  
 MARVEL HERO LIMITED 

 
  
 THE SHAREHOLDERS LISTED

 ON PART I OF EXHIBIT A 
  
 and 
  
 THE INDIVIDUALS LISTED ON PART II OF EXHIBIT A 
  
 Dated as of May 16, 2004 
  

 TABLE OF CONTENTS 
  

			
	 	  	Page

	ARTICLE I DEFINITIONS	  	 
		
	 SECTION 1.01. Certain Defined Terms
	  	1
	 SECTION 1.02. Definitions
	  	6
	 SECTION 1.03. Interpretation and Rules of Construction
	  	6
		
	ARTICLE II PURCHASE AND SALE	  	 
		
	 SECTION 2.01. Purchase and Sale of the Shares and the Registered Capital
	  	7
	 SECTION 2.02. Purchase Price
	  	7
	 SECTION 2.03. Closing
	  	8
	 SECTION 2.04. Closing Deliveries by the Company
	  	8
	 SECTION 2.05. Closing Deliveries by the Sellers
	  	9
	 SECTION 2.06. Closing Deliveries by the Purchaser
	  	9
		
	ARTICLE III	  	 
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY,
 EACH SELLER AND EACH SHAREHOLDER
	  	 
		
	 SECTION 3.01. Organization and Qualification
	  	10
	 SECTION 3.02. Affiliates
	  	10
	 SECTION 3.03. Authority; No Conflict; Required Filings and Consents
	  	10
	 SECTION 3.04. Capitalization of the Company; Affiliates
	  	11
	 SECTION 3.05. Capitalization of Goodfeel.
	  	12
	 SECTION 3.06. Financial Statements
	  	12
	 SECTION 3.07. Absence of Certain Changes or Events
	  	13
	 SECTION 3.08. Properties
	  	13
	 SECTION 3.09. Permits; Compliance
	  	13
	 SECTION 3.10. Contracts and Commitments
	  	14
	 SECTION 3.11. Intellectual Property
	  	16
	 SECTION 3.12. Litigation
	  	17
	 SECTION 3.13. [Reserved]
	  	18
	 SECTION 3.14. Insurance
	  	18
	 SECTION 3.15. Employee Benefit Matters
	  	18
	 SECTION 3.16. Labor Matters
	  	19
	 SECTION 3.17. Employees of the Business
	  	19
	 SECTION 3.18. Certain Interests
	  	20
	 SECTION 3.19. Taxes
	  	20
	 SECTION 3.20. Assets
	  	20
	 SECTION 3.21. Books and Records
	  	21
	 SECTION 3.22. Certain Business Practices
	  	21
	 SECTION 3.23. Brokers
	  	21
	 SECTION 3.24. Seller Authority; No Conflict; Required Filings and Consents
	  	21
	 SECTION 3.25. [Reserved]
	  	22
	 SECTION 3.26. Full Disclosure
	  	22

  

 i 

			
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	  	 
		
	 SECTION 4.01. Organization and Qualification
	  	22
	 SECTION 4.02. Authority; No Conflict; Required Filings and Consents
	  	22
	 SECTION 4.03. Brokers
	  	23
		
	ARTICLE V ADDITIONAL AGREEMENTS	  	 
		
	 SECTION 5.01. Conduct of Business
	  	23
	 SECTION 5.02. Access to Information
	  	25
	 SECTION 5.03. Confidentiality
	  	25
	 SECTION 5.04. Regulatory and Other Authorizations; Notices and Consents
	  	26
	 SECTION 5.05. Notice of Developments
	  	26
	 SECTION 5.06. No Solicitation or Negotiation
	  	27
	 SECTION 5.07. Use of Intellectual Property
	  	27
	 SECTION 5.08. Non-Competition
	  	27
	 SECTION 5.09. Release of Indemnity Obligations
	  	28
	 SECTION 5.10. Equity Transfer
	  	28
	 SECTION 5.11. Government Approvals
	  	28
	 SECTION 5.12. Further Action
	  	28
		
	ARTICLE VI CONDITIONS TO THE TRANSACTIONS	  	 
		
	 SECTION 6.01. Conditions to Obligations of the Company, the Sellers and the Founders
	  	29
	 SECTION 6.02. Conditions to Obligations of the Purchaser
	  	29
		
	ARTICLE VII INDEMNIFICATION	  	 
		
	 SECTION 7.01. Survival of Representations and Warranties
	  	31
	 SECTION 7.02. Indemnification by the Sellers and the Founders
	  	31
		
	ARTICLE VIII TERMINATION, AMENDMENT AND WAIVER	  	 
		
	 SECTION 8.01. Termination
	  	33
	 SECTION 8.02. Effect of Termination
	  	34
	 SECTION 8.03. Amendment
	  	34
	 SECTION 8.04. Waiver
	  	34
		
	ARTICLE IX	  	 
		
	POST CLOSING COVENANTS	  	 
		
	 SECTION 9.01. Post-Closing Employee Obligations.
	  	35
	 SECTION 9.02. Assistance with Goodfeel’s Trademark Application Assignment.
	  	35
	 SECTION 9.03. Assistance with Contract Renewal.
	  	35
	 SECTION 9.04. Assistance with Certain Contract Termination.
	  	35
	 SECTION 9.05. Equity Transfer Agreement.
	  	35
	 SECTION 9.06. Further Assurances .
	  	36
		
	ARTICLE X GENERAL PROVISIONS	  	 
		
	 SECTION 10.01. Expenses
	  	36
	 SECTION 10.02. Notices
	  	36
	 SECTION 10.03. Third-Party Beneficiaries
	  	37
	 SECTION 10.04. Public Announcements
	  	37
	 SECTION 10.05. Severability
	  	37

  

 ii 

			
	 SECTION 10.06. Assignment; Binding Effect
	  	37
	 SECTION 10.07. Incorporation of the Disclosure Schedule and the Exhibits
	  	38
	 SECTION 10.08. Governing Law
	  	38
	 SECTION 10.09. Dispute Resolution
	  	38
	 SECTION 10.10. Headings
	  	38
	 SECTION 10.11. Counterparts
	  	38
	 SECTION 10.12. Currency
	  	38
	 SECTION 10.13. Entire Agreement
	  	38

  

			
	 EXHIBITS
	 	 
		
	 Exhibit A
	 	The Sellers and the Founders
	 Exhibit B
	 	Form of Equity Transfer Agreement

  

			
	 DISCLOSURE SCHEDULE

		
	 Section 3.02
	 	Affiliates
	 Section 3.03
	 	Required Filings and Consents
	 Section 3.04
	 	Capitalization of the Company
	 Section 3.08
	 	Properties
	 Section 3.10
	 	Contracts and Commitments
	 Section 3.11
	 	Intellectual Property
	 Section 3.14
	 	Insurance
	 Section 3.15
	 	Employee Benefit Matters
	 Section 3.17
	 	Employees of the Business
	 Section 3.18
	 	Certain Interests
	 Section 9.04
	 	Certain Agreements

  

 iii 

 STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of May 16, 2004, among SOHU.COM
LIMITED, a company incorporated in the Cayman Islands (the “Purchaser “), MARVEL HERO LIMITED (

), a corporation organized under the laws of the Hong Kong Special Administrative Region (the “Company”), the shareholders of the Company listed on Part I of Exhibit A hereto
(collectively, the “Sellers” and individually, a “Seller”) and the individuals listed on Part II of Exhibit A hereto (collectively, the “Founders” and individually, a
“Founder”). 
  
 WHEREAS, the Company, through
Beijing G. Feel Technology Co., Ltd. (

 ) (“Goodfeel”), a limited liability company organized under the laws of the People’s Republic of China (the “PRC”), is engaged in the business of providing value-added
mobile data services (including the development and sales, through Monternet, of ring tones, pictures and K-Java games for mobile phones) in the PRC (the “Business”); 
  
 WHEREAS, each Seller owns such number of ordinary shares, par value HK$1.00 per share, of the Company (the “Company
Common Stock”) as is set forth opposite such Seller’s name on Part I of Exhibit A hereto, which collectively represent all of the outstanding share capital of the Company (the “Shares”); 
  
 WHEREAS, each of the Founders specified in Part II of Exhibit A hereto
owns the amount of registered capital of Goodfeel as is set forth opposite such Founder’s name on Part III of Exhibit A hereto, which collectively represent all of the subscribed and contributed registered capital of Goodfeel as of the
date hereof (the “Registered Capital”); 
  
 WHEREAS, the Sellers wish to sell to the Purchaser, and the Purchaser wishes to purchase or to cause its designee(s) (the “Purchaser Designees”) to purchase from the Sellers, the Shares, upon the terms and subject to the
conditions set forth in this Agreement; 
  
 WHEREAS, the Founders
wish to sell to the Purchaser, and the Purchaser wishes to purchase or to cause its Purchaser Designees to purchase from the Founders, the Registered Capital, upon the terms and subject to the conditions set forth in this Agreement and that certain
Equity Transfer Agreement set forth in the form attached as Exhibit B (the “Equity Transfer Agreement”); 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements and covenants hereinafter set forth, and intending to be legally bound, the
Purchaser, the Sellers, the Company and the Founders hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS

  
 SECTION 1.01. Certain Defined Terms. For purposes of
this Agreement: 
  
 “Action” means any claim,
action, suit, arbitration, inquiry, proceeding or investigation by or before any Governmental Authority. 
  
 “Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, such specified Person. For the avoidance of doubt, Goodfeel is an Affiliate of the Company. 

 “Ancillary Agreements” means the Employment Contracts and the Equity Transfer Agreement.

  
 “Assets” means the tangible and intangible
assets and properties of the Company and the Affiliates, including the Real Property. 
  
 “Business Day” means any day (other than a Saturday or Sunday) on which commercial banking institutions in the Hong Kong Special Administrative Region are open for business. 
  
 “China Mobile Cooperation Agreement” means the Corporation
Agreement signed by China Mobile Communications Group Corporation and Goodfeel on May 21, 2003. 
  
 “Claims” means any and all administrative, regulatory or judicial actions, suits, petitions, appeals, demands, demand letters, claims,
liens, notices of noncompliance or violation, investigations, proceedings, consent orders or consent agreements. 
  
 “Company Software” means all Software developed, used, owned, manufactured, sold, distributed or licensed by the Company or any of its
Affiliates. 
  
 “control” (including the terms
“controlled by” and “under common control with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative or
executor, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract, credit arrangement or otherwise.

  
 “Disclosure Schedule” means the Disclosure
Schedule attached hereto, dated as of the date hereof, delivered by the Company, Goodfeel, the Founders and the Sellers to the Purchaser in connection with this Agreement. 
  
 “Encumbrance” means any security interest, pledge, hypothecation, mortgage, lien (including environmental
and tax liens), violation, charge, lease, license, encumbrance, servient easement, adverse claim, reversion, reverter, preferential arrangement, restrictive covenant, condition or restriction of any kind, including any restriction on the use,
voting, transfer, receipt of income or other exercise of any attributes of ownership. 
  
 “Equity Amount” means RMB 4,000,000, net of individual income tax, which shall be withhold according to the PRC’s applicable taxation law, the purchase price for the Registered Capital paid by
the Purchaser or the Purchaser Designees pursuant to Section 2.02 of this Agreement and the Equity Transfer Agreement as of the date hereof. 
  
 “Governmental Authority” means any PRC or non-PRC national, supranational, state, provincial, local, or similar government, governmental,
regulatory or administrative authority, agency or commission or any court, tribunal, or judicial or arbitral body. 
  
 “Governmental Order” means any order, ruling, writ, judgment, injunction, decree, stipulation, determination or award entered by or with
any Governmental Authority. 
  

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 “Guangdong Mobile Cooperation Agreement” means the Cooperation Agreement signed by
Guangdong Mobile Communications Co., Ltd. and Goodfeel on December 27, 2003. 
  
 “HK$” means Hong Kong dollars, the lawful currency of the Hong Kong Special Administrative Region. 
  
 “Indebtedness” means, with respect to any Person, (a) all indebtedness of such Person, whether or not contingent, for borrowed money, (b)
all obligations of such Person for the deferred purchase price of property or services, (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any
conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of
such property), (e) all obligations of such Person as lessee under leases that have been or should be, in accordance with U.S. GAAP, recorded as capital leases, (f) all obligations, contingent or otherwise, of such Person under acceptance, letter of
credit or similar facilities, (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise acquire for value any capital stock or registered capital of such Person or any warrants, rights or options to acquire such capital
stock or registered capital, (h) all Indebtedness of others referred to in clauses (a) through (g) above guaranteed directly or indirectly in any manner by such Person, or in effect guaranteed directly or indirectly by such Person through an
agreement (i) to pay or purchase such Indebtedness or to advance or supply funds for the payment or purchase of such Indebtedness, (ii) to purchase, sell or lease (as lessee or lessor) property, or to purchase or sell services, primarily for the
purpose of enabling the debtor to make payment of such Indebtedness or to assure the holder of such Indebtedness against loss, (iii) to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or
services irrespective of whether such property is received or such services are rendered) or (iv) otherwise to assure a creditor against loss, and (i) all Indebtedness referred to in clauses (a) through (g) above secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Encumbrance on property (including accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness. 
  
 “Intellectual
Property” means (i) patents, patent applications and statutory invention registrations, (ii) trademarks, service marks, Company Marks, Internet domain names, trade dress, trade names, logos, and other source identifiers, including
registrations and applications for registration thereof, (iii) copyrights, including registrations and applications for registration thereof, (iv) Software, and (v) confidential and proprietary information, including trade secrets, know-how, designs
and drawings, engineering documents, technical manuals, patterns, processes, formulae, inventions and discoveries (whether patentable or not), and all related documentation, developer notes, comments and annotations, and other similar rights of the
Company and its Affiliates, and all applications therefor and registrations thereof, and all rights to sue for past, present and future infringement or other violations of the Intellectual Property, and all goodwill associated with any of the
foregoing. 
  
 “IP Agreements” means all (a)
licenses of Intellectual Property by the Company or any Affiliate to any third party, (b) licenses of Intellectual Property by any third party to the Company or any Affiliate, (c) agreements between the Company or any Affiliate and any third party
relating to the development or use of Intellectual Property, the 
  

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 development or transmission of data, or the use, modification, framing, linking, advertisement, or other practices with
respect to Internet web sites, and (d) consents, settlements, decrees, orders, injunctions, judgments or rulings governing the use, validity or enforceability of Intellectual Property. 
  
 “Law” means any PRC or non-PRC national, supranational, state, provincial, local or similar statute, law,
ordinance, regulation, rule, code, Governmental Order, requirement or rule of law (including common law). 
  
 “Leased Real Property” means the real property leased by the Company or any Affiliate as tenant, together with, to the extent leased by
the Company or any Affiliate, all buildings and other structures, facilities or improvements currently or hereafter located thereon, all fixtures, systems, equipment and items of personal property of the Company or any Affiliate attached or
appurtenant thereto and all easements, licenses, rights and appurtenances relating to the foregoing. 
  
 “Liabilities” means any and all debts, liabilities and obligations, whether accrued or fixed, absolute or contingent, matured or
unmatured or determined or determinable, including those arising under any Law (including any Tax Law), Action or Governmental Order and those arising under any contract, agreement, arrangement, commitment or undertaking. 
  
 “Licensed Intellectual Property” means all Intellectual
Property licensed to the Company or any Affiliate pursuant to the IP Agreements. 
  
 “Material Adverse Effect” means any event, circumstance, change in or effect on the Business, the Company and the Affiliates or the Purchaser and its Affiliates, as the context dictates, that,
individually or in the aggregate with all other events, circumstances, changes in or effects on the Business, the Company and the Affiliates or the Purchaser and its Affiliates, as the context dictates, has had or is reasonably expected to have a
material adverse effect on the business, operations, prospect assets or liabilities (including without limitation, contingent liabilities) results of operations or the condition (financial or otherwise) of the Business, the Company and the
Affiliates or the Purchaser and its Affiliates, as the context dictates, taken as a whole. 
  
 “Owned Intellectual Property” means all Intellectual Property owned by the Company or any Affiliate. 
  
 “Owned Real Property” means the real property in which the Company or any Affiliate has fee title (or equivalent) interest, together with
all buildings and other structures, facilities or improvements currently or hereafter located thereon, all fixtures, systems, equipment and items of personal property of the Company or any Affiliate attached or appurtenant thereto and all easements,
licenses, rights and appurtenances relating to the foregoing. 
  
 “PRC GAAP” means PRC Accounting Standards for Business Enterprises and other relevant accounting laws and regulations in effect from time to time applied consistently throughout the periods involved. 
  
 “Permitted Encumbrances” means such of the following as to
which no enforcement, collection, execution, levy or foreclosure proceeding shall have been 
  

 4 

 commenced and as to which neither the Company nor any Affiliate is otherwise subject to civil or criminal liability due
to its existence: (a) liens for Taxes not yet due and payable, for which adequate reserves have been maintained in accordance with U.S. GAAP; (b) Encumbrances imposed by Law, such as materialmen’s, mechanics’, carriers’,
workmen’s and repairmen’s liens and other similar liens arising in the ordinary course of business securing obligations that (i) are not overdue for a period of more than 30 days and (ii) are not in excess of RMB50,000 in the case of a
single property or RMB500,000 in the aggregate at any time; (c) pledges or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations; and (d) minor survey exceptions,
reciprocal easement agreements and other customary encumbrances on title to real property that (i) were not incurred in connection with any Indebtedness, (ii) do not render title to the property encumbered thereby unmarketable and (iii) do not,
individually or in the aggregate, materially adversely affect the value of or the use of such property for its current and anticipated purposes. 
  
 “Person” means any individual, partnership, firm, corporation, limited liability company, association, trust, unincorporated organization
or other entity, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Securities Exchange Act of 1934. 
  
 “RMB” means Renminbi Yuan, the lawful currency of the PRC. 
  
 “Real Property” means the Leased Real Property and the Owned Real Property. 
  
 “Reference Balance Sheet” means the unaudited balance sheet
(including the related notes and schedules thereto) of Goodfeel dated as of April 30, 2004 prepared in accordance with PRC GAAP. 
  
 “Software” means computer software, programs and databases in any form, including Internet web sites, web contentlinks, source code,
object code, operating systems and specifications, data, databases, database management code, utilities, graphical user interfaces, menus, images, icons, forms, methods of processing, software engines, platforms, and data formats, and all versions,
updates, corrections, enhancements, replacements, and modifications thereof, and all documentation related thereto. 
  
 “Tax” or “Taxes” shall mean any and all taxes, fees, levies, duties, tariffs, imposts and other charges of any kind
(together with any and all interest, penalties, additions to tax and additional amounts imposed with respect thereto) imposed by any Governmental Authority or taxing authority, including: taxes or other charges on or with respect to income,
franchise, windfall or other profits, gross receipts, property, sales, use, capital stock, payroll, employment, social security, workers’ compensation, unemployment compensation or net worth; taxes or other charges in the nature of excise,
withholding, ad valorem, stamp, transfer, value-added or gains taxes; license, registration and documentation fees; and customers’ duties, tariffs and similar charges. 
  
 “Technical Service Agreement” means the Technical Consulting and Service Agreement entered into by the
Company and Goodfeel on May 1, 2003, as amended as of February 1, 2004. 
  
 “U.S. GAAP” means United States generally accepted accounting principles and practices in effect from time to time applied consistently throughout the periods involved. 
  

 5 

 SECTION 1.02. Definitions The following terms have the meanings set forth in the Sections set
forth below: 
  

			
	 Definition

	  	Location

	 “Aggregate Purchase Price”
	  	2.02(a)
	 “Agreement”
	  	Preamble
	 “Business”
	  	Recitals
	 “Business Employee”
	  	9.01
	 “Closing”
	  	2.03
	 “Closing Date”
	  	2.03
	 “Closing Deliveries”
	  	2.02
	 “Closing Payment”
	  	2.02(b)
	 “Company”
	  	Preamble
	 “Company Common Stock”
	  	Recitals
	 “Company Marks”
	  	5.07
	 “Deposit”
	  	2.02 (b)(ii)
	 “Employee Obligations”
	  	9.01
	 “Employment Contracts”
	  	6.02
	 “Equity Transfer Agreement”
	  	Recitals
	 “Financial Statements”
	  	3.06(a)
	 “Founders”
	  	Preamble
	 “Goodfeel”
	  	Recitals
	 “Loss”
	  	7.02(a)
	 “Material Contracts”
	  	3.10(a)
	 “Operational Records”
	  	3.06
	 “Permits”
	  	3.09(a)
	 “Plans”
	  	3.15(a)
	 “PRC”
	  	Recitals
	 “Purchaser”
	  	Preamble
	 “Purchaser Designees”
	  	Recitals
	 “Purchaser Indemnified Party”
	  	7.01(a)(2)
	 “Registered Capital”
	  	Recitals
	 “Registration”
	  	2.02(b)
	 “Restricted Period”
	  	5.08(a)
	 “Sellers”
	  	Preamble
	 “Shares”
	  	Recitals
	 “Third Party Claims”
	  	7.02(b)
	 “Total Purchase Price”
	  	2.02(a)

  
 SECTION 1.03.
Interpretation and Rules of Construction. In this Agreement, except to the extent otherwise provided or that the context otherwise requires: 
  
 (a) when a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference is to an Article or Section of, or a Schedule
or Exhibit to, this Agreement unless otherwise indicated; 
  
 (b)
the table of contents and headings for this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation of this Agreement; 
  

 6 

 (c) whenever the words “include,” “includes” or “including” are used in
this Agreement, they are deemed to be followed by the words “without limitation”; 
  
 (d) the words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this
Agreement; 
  
 (e) all terms defined in this Agreement have the
defined meanings when used in any certificate or other document made or delivered pursuant hereto, unless otherwise defined therein; 
  
 (f) the definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms; 
  
 (g) any Law defined or referred to herein or in any agreement or instrument
that is referred to herein means such Law or statute as from time to time amended, modified or supplemented, including by succession of comparable successor Laws; 
  
 (h) references to a Person are also to its successors and permitted assigns; and 
  
 (i) the use of “or” is not intended to be exclusive unless
expressly indicated otherwise. 
  
 ARTICLE II 
  
 PURCHASE AND SALE 
  
 SECTION 2.01. Purchase and Sale of the Shares and the Registered
Capital. 
  
 (a) Upon the terms and subject to the conditions
of this Agreement, at the Closing, the Sellers shall sell, assign, transfer, convey and deliver, or cause to be sold, assigned, transferred, conveyed and delivered, to the Purchaser or to one or more Affiliates or Affiliates designated by the
Purchaser, the Shares and any and all right, title and interest of any Seller in and to the Shares, and the Purchaser shall purchase or shall cause such designee to purchase the Shares. 
  
 (b) The Founders shall sell, assign, transfer, convey and deliver to the Purchaser or the Purchaser Designees, and the
Purchaser shall cause the Purchaser or the Purchaser Designees to purchase, the Registered Capital pursuant to the terms of the Equity Transfer Agreement and as set forth herein prior to the Closing. 
  
 SECTION 2.02. Purchase Price The aggregate purchase price for the
Shares and the covenants contained in Section 5.08 shall be seventeen million five hundred sixteen thousand three hundred twenty-five U.S.dollars (U.S.$17,516,325) (the “Aggregate Purchase Price”). The Aggregate Purchase Price for
the Registered Capital shall be the Equity Amount payable in accordance with the terms of the Equity Transfer Agreement and as set forth herein. The Aggregate Purchase Price and the foregoing Equity Amount is referred to as the “Total
Purchase Price.”  
  
 (b) The Total Purchase Price
shall be paid as follows. 
  

 7 

 (i) Upon the signing of this Agreement, the Purchaser or its Purchaser Designees shall pay U.S. $500,000
by check or wire transfer of immediately available funds in the form of a deposit (the “Deposit”) to the Sellers to be credited at Closing towards the Aggregate Purchase Price. 
  
 (ii) Upon the registration of the transfer of the Registered Capital with the
appropriate Governmental Authority (the “Registration”), which shall occur on or about May 28, 2004, the Purchaser or the Purchaser Designees shall pay the Equity Amount to the Founders according to the ratio specified in the Equity
Transfer Agreement. 
  
 (iii) U.S. $8,316325 of the Aggregate
Purchase Price shall be paid by the Purchaser or the Purchaser Designees to the Sellers at the Closing by wire transfer of immediately available funds to the account(s) designated in writing by the Sellers to the Purchaser (the “Closing
Payment”). 
  
 (iv) The remainder of the Aggregate Purchase
Price (which for clarification is the Aggregate Purchase Price less the Deposit less the Closing Payment (i.e., US$8,700,000)) shall be paid by the Purchaser or the Purchaser Designees to the Sellers upon satisfaction by the Founders of their
obligations to be satisfied following the Closing under the Equity Transfer Agreement by wire transfer of immediately available funds to the account(s) designated in writing by the Sellers to the Purchaser. 
  
 (c) The Purchaser’s obligation to pay each installment of the Total
Purchase Price will be subject to the continued accuracy as of the date of such installment of the Company’s, the Affiliates’, Sellers’ and the Founders’ representations and warranties made herein and in the Equity Transfer
Agreement. At the Closing, the Company, the Sellers and the Founders shall make the closing deliveries as set forth in Section 2.04 and 2.05, as applicable and the Purchaser or the Purchaser Designees shall make the closing deliveries as set forth
in Section 2.06 (the “Closing Deliveries”). 
  
 SECTION 2.03. Closing Subject to the terms and conditions of this Agreement, the sale and purchase of the Shares contemplated by this Agreement shall take place at a closing (the “Closing”) to be held at the offices
of the Purchaser, which are located at 15/F, Tower 2, Bright China Chang An Building, 7 Jianguomennei Avenue, Beijing, PRC following the satisfaction or, if permissible, waiver of all conditions to the obligations of the parties set forth in Article
VI hereof (other than those conditions that will be satisfied at the Closing) which shall be targeted for May 28, 2004 but shall be no later than June 30, 2004, or at such other place or at such other time or on such other date as the parties may
mutually agree upon in writing. The date and time of the Closing are herein referred to as the “Closing Date”. 
  
 SECTION 2.04. Closing Deliveries by the Company. At the Closing, the Company shall deliver and the Sellers and the Founders shall cause to be
delivered to the Purchaser: 
  
 (a) a true and complete copy of
(i) the board resolutions duly and validly adopted by the Board of Directors of the Company and (ii) the resolutions of the shareholders of the Company, evidencing their respective authorization and approval of the execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby; 
  

 8 

 (b) a true and complete copy of the board resolutions duly and validly adopted by the Board of Directors
of the Company approving (i) the registration of the Purchaser or the Purchaser Designees as a shareholder of the Company subject only to the production of duly completed instruments of transfer in respect of the Shares; (ii) approving the
appointment of Victor Koo, Carol Yu and Kim Zhi Huan as directors of the Company; and (iii) approving the resignation of the Sellers as directors of the Company; 
  
 (c) stock certificates evidencing the Registered Capital duly endorsed in blank, or accompanied by stock powers duly
executed in blank, in form satisfactory to Purchaser and with all required stock transfer tax stamps affixed, along with the Purchaser Designees, investment certificates or other reasonable evidence issued by Goodfeel evidencing the ownership of the
Registered Capital by the Purchaser; 
  
 (d) all filings,
consents, approvals, permits and authorizations set forth in Section 6.02(iv); 
  
 (e) executed counterparts of the Employment Contracts; 
  
 (f) the opinion, certificates and other documents required to be delivered pursuant to Section 6.02. 
  
 SECTION 2.05. Closing Deliveries by the Sellers. At the Closing, each Seller shall deliver or cause to be delivered to Purchaser: 
  
 (a) duly executed instruments of transfer in respect of all of the Shares in
favor of the Purchaser or the Purchaser Designees together with the relevant share certificates evidencing the Shares, along with investment certificates or other reasonable evidence issued by the Company evidencing the ownership of the Shares by
the Purchaser or the Purchaser Designees; 
  
 (b) a receipt for
the portion of the Total Purchase Price to be paid at Closing pursuant to Section 2.2(b); 
  
 (c) a letter of resignation as director of the Company; 
  
 (d) except for the items set forth in the Equity Transfer Agreement which are post Closing deliveries, the original and duplicate materials for the amendment of the business license and other registrations of the
Company and/or Goodfeel evidencing the completion of the transactions contemplated by the Equity Transfer Agreement and of this Agreement; 
  
 (e) the opinion, certificates and other documents required to be delivered pursuant to Section 6.02.; and 
  
 (f) evidence that each of the Company and Goodfeel has removed those Persons
who were bank signatories to any and all bank and deposit accounts of the Company and Goodfeel immediately prior to the Closing from such bank and deposit accounts. 
  
 SECTION 2.06. Closing Deliveries by the Purchaser. At the Closing, the Purchaser shall deliver to the Company, the
Founders or the Sellers (as applicable): 
  
 (a) the portion of
the Total Purchase Price to be paid at Closing pursuant to Section 2.2(b), in U.S. dollars by wire transfer in immediately available funds to the bank account designated by the Sellers; 
  

 9 

 (b) a true and complete copy of the resolutions duly and validly adopted by the Board of Directors of the
Purchaser evidencing its authorization and approval of the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby; 
  
 (c) executed counterparts of the Employment Contracts; and 
  
 (d) the certificates and other documents required to be delivered pursuant to Section 6.01. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES 
 OF THE COMPANY, EACH SELLER AND EACH FOUNDER 
  
 As an inducement to the Purchaser to enter into this Agreement, the Company, each Seller and each Founder, jointly and severally, represent and warrant to the Purchaser as follows: 
  
 SECTION 3.01. Organization and Qualification. Each of the Company and
the Affiliates is a corporation duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its organization and has all requisite power and authority to own, lease and operate its properties and to carry on its
business as it is now being conducted. Neither the Company nor any Affiliate has conducted any business in any jurisdiction other than in the PRC. The Company has heretofore made available to the Purchaser a complete and correct copy of the
Certificate of Incorporation, the Memorandum of Association and the Articles of Association or the equivalent organizational documents of the Company and each Affiliate. Such Certificates of Incorporation, the Memorandum of Association and the
Articles of Association or equivalent organizational documents are in full force and effect. Neither the Company nor any Affiliate is in violation of any of the provisions of its Certificate of Incorporation, Memorandum of Association or Articles of
Association or equivalent organizational documents. The Company and the Affiliates have no subsidiaries. 
  
 SECTION 3.02. Affiliates. (a) Section 3.02(a) of the Disclosure Schedule sets forth a true and complete list of all Affiliates, listing for each
Affiliate its name, type of entity, the jurisdiction and date of its incorporation or organization, its authorized capital stock, registered capital, partnership capital or equivalent, the number and type of its issued and outstanding shares of
capital stock, registered capital, partnership interests or similar ownership interests and the current ownership of such shares, partnership interests or similar ownership interests. 
  
 (b) Other than the Company and Goodfeel, there are no other corporations, partnerships, joint ventures, associations or
other entities that participate in or that are involved in the Business. The Business is the sole business conducted, now and in the past, by the Company or Goodfeel. 
  
 SECTION 3.03. Authority; No Conflict; Required Filings and Consents. (a) Each of the Company and the Affiliates has
all necessary corporate (or other requisite) power 
  

 10 

 and authority to execute and deliver this Agreement and the Ancillary Agreements to which it is a party and to perform
its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the Ancillary Agreements by the Company and each Affiliate that is a party thereto and the
consummation by the Company and each such Affiliate of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate (or other requisite) action and no other corporate (or other requisite)
proceedings on the part of the Company or any Affiliate are necessary to authorize this Agreement or the Ancillary Agreements or to consummate the transactions contemplated hereby or thereby. This Agreement has been, and upon their execution the
Ancillary Agreements shall have been, duly and validly executed and delivered by the Company and each Affiliate that is a party thereto and, assuming the due authorization, execution and delivery by the Purchaser, constitutes, and upon their
execution the Ancillary Agreements shall constitute, a legal, valid and binding obligation of the Company and each Affiliate that is a party thereto, enforceable against the Company and such Affiliate in accordance with their respective terms.

  
 (b) The execution and delivery of this Agreement and the
Ancillary Agreements by the Company and each Affiliate that is a party thereto do not and will not as the case may be, and the performance of this Agreement and the Ancillary Agreements by the Company and each such Affiliate will not, (i) conflict
with or violate the Certificate of Incorporation, Memorandum of Association or Articles of Association or equivalent organizational documents of the Company or any Affiliate, (ii) assuming that all consents, approvals, authorizations and other
actions described in Section 3.03(c) of the Disclosure Schedule have been obtained and all filings and obligations described in Section 3.03(c) of the Disclosure Schedule have been made, conflict with or violate any Law applicable to the Company or
any Affiliate or by which any Asset is bound or affected, or (iii) result in any breach of or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any right of termination,
amendment, acceleration or cancellation of, or result in the creation of any Encumbrance on any capital stock or registered capital of the Company or any Affiliate, including the Shares and the Registered Capital or on any Asset pursuant to, any
note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation. 
  
 (c) Except as disclosed in Section 3.03(c) of the Disclosure Schedule, the execution and delivery of this Agreement and the Ancillary Agreements by the
Company and each Affiliate that is a party thereto do not and will not, as the case may be, and the performance of this Agreement and the Ancillary Agreements by the Company and each such Affiliate will not, require any consent, approval,
authorization or permit of, or filing with or notification to, any third party or any Governmental Authority. 
  
 SECTION 3.04. Capitalization of the Company. The authorized share capital of the Company consists of 10,000 shares, par value HK$1.00 of Company
Common Stock. As of the date hereof, (a) 2 shares of Company Common Stock are issued and outstanding, all of which are validly issued, fully paid and nonassessable and are owned of record by the Sellers and beneficially by Kim Zhi Huan, free and
clear of any Encumbrances (other than Encumbrances created by this Agreement), in the amounts set forth on Part I of Exhibit A hereto; such 2 shares constitute the “Shares;” and there are no issued shares of capital stock of the
Company other than the Shares, (b) no shares of Company Common Stock are held in the treasury of the Company, (c) 9,998 shares of Company Common Stock are reserved for future issuance. Except for the foregoing 10,000 shares of Company Common Stock

  

 11 

 described in the preceding sentence, there are no other shares of capital stock or securities convertible into or
exercisable for shares of capital stock of the Company issued and outstanding. There are no options, warrants, notes, convertible securities, rights of first refusal, preemptive rights, subscription rights or other rights, agreements, arrangements
or commitments of any character relating to the issued or unissued capital stock of the Company or obligating the Company to issue or sell any shares of capital stock, options, warrants or convertible securities of, or other interests in, the
Company. There are no outstanding contractual obligations of the Company to repurchase, redeem or otherwise acquire any shares of capital stock of the Company. Except for this Agreement and as set forth in Section 3.04(a) of the Disclosure Schedule,
there are no voting trusts, shareholder agreements, proxies or other agreements or understandings in effect with respect to the voting or transfer of any of the Shares. There are no material outstanding contractual obligations of the Company to
provide funds to, or make any investment (in the form of a loan, capital contribution or otherwise) in, any Person. Upon the Closing, (a) the Purchaser will own all of the issued and outstanding capital stock of the Company, beneficially and of
record, free and clear of all Encumbrances and (b) the Shares will be fully paid and nonassessable. 
  
 SECTION 3.05. Capitalization of Goodfeel. The Registered Capital of Goodfeel is RMB 1,000,000 of which 73% is held by Li Ming Zhe, and 27% is held
by Yang Xiang Hua. The Registered Capital is owned of record by the Founders and beneficially by Kim Zhi Huan, free and clear of any Encumbrances (other than Encumbrances created by this Agreement or the Equity Transfer Agreement). Upon the
consummation of the transactions contemplated by the Equity Transfer Agreement and this Agreement, the Purchaser or the Purchaser Designees will own all of the Registered Capital, beneficially and of record, free and clear of all Encumbrances.

  
 SECTION 3.06. Financial Statements. (a) True and
complete copies of the Reference Balance Sheet and the unaudited balance sheets of Goodfeel as at December 31, 2003 and April 30, 2004, respectively, and the related unaudited statements of operations, income, retained earnings, stockholders’
equity and cash flows for the fiscal year ended as of December 31, 2003 and for the month ended as of April 30, 2004, respectively, together with all related notes and schedules thereto (collectively, the “Financial Statements”)
have been delivered by the Company to the Purchaser. The Financial Statements (i) were prepared in accordance with the books of account and other financial records of Goodfeel, (ii) present fairly the consolidated financial condition and results of
operations of Goodfeel as of the dates thereof or for the respective periods indicated therein, (iii) have been prepared in accordance with PRC GAAP applied on a basis consistent with the past practices of Goodfeel and (iv) include all adjustments
(consisting only of normal recurring accruals) that are necessary for a fair presentation of the consolidated financial condition of Goodfeel and the results of the operations of Goodfeel as of the dates thereof or for the periods covered thereby.

  
 (b) There are no Liabilities of the Company or the Affiliates
other than Liabilities (i) reflected or reserved against on the Reference Balance Sheet, or (ii) incurred since April 30, 2004 in the ordinary course of business consistent with past practice that would not be material to the Company or Goodfeel
under U.S. GAAP. 
  
 (c) Complete and accurate copies of all
Operational Records at the end of each calendar month of 2003 and of the first quarter of 2004 have been provided by the Company to the Purchaser. Operational Records: (i) are in all material respects complete and correct, and do not contain or
reflect any material inaccuracies or discrepancies and (ii) have 
  

 12 

 been maintained in accordance with good business and accounting practices. As used herein the term “Operational
Records” means any and all of the books, records and accounts relating to the Business and which either are or have been (a) required by Law or prudent business practice to be maintained; or (b) in fact maintained by the Company or any
Affiliate. 
  
 SECTION 3.07. Absence of Certain Changes or
Events. Since December 31, 2003, except as otherwise permitted by this Agreement, the Company and each Affiliate has conducted its business only in the ordinary course and in a manner consistent with past practice. 
  
 SECTION 3.08. Properties. (a) The Company and the Affiliates own good,
valid and marketable title to all of the tangible personal property shown on the Reference Balance Sheet and thereafter acquired, free and clear of all Encumbrances, except for Permitted Encumbrances, and except for inventory and other personal
property sold, exchanged or otherwise disposed of in the ordinary course of business and in a manner consistent with past practice. 
  
 (b) Neither the Company nor any of its Affiliates has any Owned Real Property. 
  
 (c) Section 3.08(c) of the Disclosure Schedule lists: (i) the street address of each parcel of Leased Real Property, (ii)
the identity of the lessor, lessee and current occupant (if different from lessee) of each such parcel of Leased Real Property, (iii) the terms (referencing applicable renewal periods) and rental payment amounts (including all escalations)
pertaining to each such parcel of Leased Real Property, and (iv) the current use of each such parcel of Leased Real Property. 
  
 (d) There is no material violation of any Law (including any building, planning or zoning Law) relating to any of the Real Property. Neither the Company
nor any Affiliate has leased or subleased any parcel or any portion of any parcel of Real Property to any other Person and no other Person has any rights to the use, occupancy or enjoyment thereof pursuant to any lease, sublease, license, occupancy
or other agreement, nor has the Company or any Affiliate assigned its interest under any lease or sublease listed in Section 3.08(c) of the Disclosure Schedule to any third party. There are no condemnation proceedings or eminent domain proceedings
of any kind or other matters affecting materially and adversely the current use, occupancy or value of the Real Property pending or, to the knowledge of the Company after due inquiry, threatened against the Real Property. Each lease agreement in
respect of each parcel of Leased Real Property has been registered with the appropriate Governmental Authority. To the best knowledge of the Company after due inquiry, there are no facts that would prevent the Real Property from being occupied by
the Company or any Affiliate, as the case may be, after the Closing in the same manner as occupied by the Company or such Affiliate immediately prior to the Closing. The Company is not in default under any lease agreement to which it is a party with
respect to any Leased Real Property. 
  
 SECTION 3.09. Permits;
Compliance. (a) The Company and each Affiliate is in possession of all material franchises, grants, authorizations, licenses, certifications, permits, easements, variances, exceptions, consents, certificates, approvals and orders of any
Governmental Authority necessary for the Company and each Affiliate to own, lease and operate its properties or to carry the Business (the “Permits”), and no suspension or cancellation of any of the Permits is pending or, to the
knowledge of the Company, threatened. 
  

 13 

 (b) The Company and the Affiliates have each conducted and continue to conduct the Business in accordance
with all Laws applicable to the Company or any Affiliate or the Assets and neither the Company nor any Affiliate is in conflict with, or in default or violation of, any such Law or any Permits. 
  
 SECTION 3.10. Contracts and Commitments. (a) Section 3.10(a) of the
Disclosure Schedule lists each of the following contracts and agreements, whether written or oral, to which the Company or any Affiliate is a party as of the date hereof (such contracts and agreements, being “Material Contracts”):

  
 (i) any contract or agreement (including,
without limitation, purchase orders and acknowledgments) which (A) is likely to involve consideration in excess of US$50,000 during the fiscal year ending December 31, 2004, (B) is likely to involve consideration in excess of US$50,000 over the
remaining term of such contract or agreement or (C) except employment agreements with the employees (other than the senior management) of Goodfeel, cannot be cancelled by the Company or such Affiliate without penalty or further payment and without
more than 30 days’ notice; 
  
 (ii) any
sales, distributor, dealer, franchise, agency, promotion, marketing or advertising contract or agreement; 
  
 (iii) any management contract or agreement or contract or agreement with independent contractors, consultants or advisors that is not
cancelable without penalty or further payment and without more than 30 days’ notice; 
  
 (iv) any contract or agreement relating to Indebtedness and the respective principal amounts outstanding thereunder as of the date of this
Agreement; 
  
 (v) any contract or agreement with
any Governmental Authority; 
  
 (vi) any contract
or agreement that limits or purports to limit the ability of the Company or any Affiliate, or, to the Company’s knowledge, any employee of the Company or any Affiliate, to compete in any line of business or with any Person or in any geographic
area or during any period of time; 
  
 (vii) any
contract or agreement that contains restrictions with respect to payment of dividends or any other distribution in respect of the capital stock or registered capital of the Company or any Affiliate; 
  
 (viii) any contract or agreement concerning a partnership or
joint venture; 
  
 (ix) any contract or agreement
with any employee, consultant or advisor of the Company or any Affiliate or other individuals, including any existing severance (including early retirement and redundancy) plans or arrangements for any current or former employee of the Company or
any Affiliate; 
  
 (x) any contract or agreement
relating to the Real Property; 
  
 (xi) any
contract or agreement under which the Company or any Affiliate is lessee of or holds or operates any personal property providing for payments in excess of US$50,000 annually; 
  

 14 

 (xii) any contract or agreement relating to the acquisition or divestiture of the capital
stock or other equity securities, registered capital, assets or business of any Person involving the Company or any Affiliate or pursuant to which the Company or any Affiliate has any Liability, contingent or otherwise; 
  
 (xiii) any contract or agreement, other than contracts and
agreements entered into in the ordinary course of business, which prevents the Company or any Affiliate from disclosing confidential information; 
  
 (xiv) any warranty, guaranty or other similar undertaking with respect to a contractual performance extended by the Company or any
Affiliate; 
  
 (xv) any contract or agreement
pursuant to which the Company or any Affiliate has agreed to defend, indemnify or hold harmless any other Person; 
  
 (xvi) any contract or agreement under which the Company or any Affiliate has advanced or loaned any amount to any stockholder, director,
officer or employee of the Company or any Affiliate; 
  
 (xvii) any contract or agreement between the Company or any Affiliate on the one hand and any Founder or Seller or any Affiliate, spouse or relative of a Founder or Seller on the other hand; 
  
 (xviii) any inter-company contract or agreement between the
Company or any Affiliate on the one hand, and any Affiliate or Affiliate of an Affiliate on the other hand; 
  
 (xix) the IP Agreements; 
  
 (xx) any agreement pursuant to which the Company or any Affiliate has agreed to settle any Liability for Taxes; 
  
 (xxi) any agreement pursuant to which the Company or any
Affiliate has agreed to shift or allocate the Liability of the Company or any other person for Taxes; and 
  
 (xxii) any other contract or agreement, whether or not made in the ordinary course of business, which is material to the Company, any
Affiliate or the conduct of the Business, or the absence of which would have a Material Adverse Effect. 
  
 (b) Each Material Contract: (i) is legal, valid, binding and enforceable on the parties thereto and is in full force and effect and (ii) upon consummation
of the transactions contemplated by this Agreement shall continue in full force and effect and shall not give rise to any termination, amendment, acceleration, cancellation or penalty or other adverse consequence. None of the Company, any Affiliate
or any Founder is in breach of, or default under, any Material Contract. 
  
 (c) To the best knowledge of the Company and the Founders after due inquiry, no other party to any Material Contract is in breach thereof or default thereunder (nor 
  

 15 

 does there exist any condition which upon the passage of time or the giving of notice would cause such a breach thereof
or default thereunder), and none of the Company, any Affiliate or any Founder has received any notice of termination, cancellation, breach or default under any Material Contract. 
  
 (d) The Company has made available to the Purchaser true and complete copies of all written Material Contracts, together
with all material amendments, waivers or other changes thereto, and has been given a written description of all oral contracts. 
  
 (e) There is no contract, agreement or other arrangement granting any Person any preferential right to purchase, other than in the ordinary course of
business consistent with past practice, any of the Assets, Shares or Registered Capital. Without limiting the generality of the foregoing, there is no contract, agreement or other arrangement with Sina or any other Person and to which the Company,
any Affiliate, any Seller or any Founder is a party or subject (or otherwise impacting or affecting the Assets, Shares or Registered Capital) which (a) includes a “no-shop” provision or otherwise limits or restricts the ability of the
Company, any Affiliate, any Seller or any Founder to perform their obligations under this Agreement or the Ancillary Agreements or to consummate the transactions herein or therein; (b) limits or restricts the ability of the Company, any Affiliate,
any Seller or any Founder to provide to the Purchaser or its Affiliates any information or materials relating to the Company, any Affiliate, any Seller or any Founder, or the Business; or (c) otherwise would be breached by the execution and delivery
of, or performance of any obligations under, this Agreement or the Ancillary Agreements by the Company, any Affiliate, any Seller or any Founder. There is no contract or agreement to which a Founder or Seller or any spouse or relative or Affiliate
of such Founder or Seller is a party or is otherwise obligated relating to the Business, other than any Material Contract. 
  
 SECTION 3.11. Intellectual Property. (a) Section 3.11(a) of the Disclosure Schedule sets forth a true and complete list of (i) patents and patent
applications, trademark registrations and trademark applications, copyright registrations and copyright applications, Software and Internet domain names included in the Owned Intellectual Property, (ii) the IP Agreements, (iii) other Owned
Intellectual Property that is material to the Business and (iv) any Licensed Intellectual Property that is material to the Business. Except for the Owned Intellectual Property and the Licensed Intellectual Property, there are no other items of
Intellectual Property that are material to the ordinary conduct of the business of the Company. 
  
 (b) The operation of the business of the Company and the Affiliates as currently conducted or as contemplated to be conducted, and the use of the Owned
Intellectual Property and the Licensed Intellectual Property in connection therewith, do not conflict with, infringe, dilute, misappropriate or otherwise violate the Intellectual Property of any third party, and no claim is pending or threatened
against the Company or any Affiliate alleging any of the foregoing. 
  
 (c) To the best knowledge of the Company or any Seller or Founder after due inquiry, no person is engaging in any activity or using any Intellectual Property that infringes, dilutes, misappropriates or otherwise violates or conflicts with
the Owned Intellectual Property or Licensed Intellectual Property. 
  
 (d) The Company and the Affiliates are the exclusive owners of the entire and unencumbered right, title and interest in and to each item of the Owned Intellectual 
  

 16 

 Property, and are entitled to use the Owned Intellectual Property and Licensed Intellectual Property in the ordinary
course of their business as presently conducted or as contemplated to be conducted subject only to the terms of the IP Agreements. 
  
 (e) To the best knowledge of the Company or the Sellers and the Founders after due inquiry, the Owned Intellectual Property and the Licensed Intellectual
Property are subsisting, valid and enforceable and have not been adjudged invalid or unenforceable in whole or in part. To the best knowledge of the Company and the Founders after due inquiry, the Owned Intellectual Property and the Licensed
Intellectual Property, is not subject to any outstanding consent, settlement, decree, order, injunction, judgment or ruling restricting the use of such Intellectual Property or that would impair the validity or enforceability of such Intellectual
Property. 
  
 (f) To the best knowledge of the Company, the
Sellers and the Founders after due inquiry, no legal proceedings have been asserted, are pending or are threatened against the Company or any Affiliate (i) based upon or challenging or seeking to deny or restrict the use by the Company or any
Affiliate of any of the Owned Intellectual Property or Licensed Intellectual Property, (ii) alleging that any services provided by, processes used by, or products manufactured, used or sold by the Company or any Affiliate infringe, misappropriate or
otherwise violate any Intellectual Property right of any third party, or (iii) alleging that the Licensed Intellectual Property is being licensed in conflict with the terms of any license or other agreement. 
  
 (g) Neither the Company nor any Affiliate has granted any license or other
right to any third party with respect to the Owned Intellectual Property or Licensed Intellectual Property. The consummation of the transactions contemplated by this Agreement will not result in the termination or impairment of any Owned
Intellectual Property, Licensed Intellectual Property or the IP Agreements. 
  
 (h) The Company and each Affiliate has maintained the confidentiality of its trade secrets and other confidential Intellectual Property. There has been no misappropriation of any trade secrets or other confidential
Intellectual Property of the Company or any Affiliate by any person. No employee, independent contractor or agent of the Company or any Affiliate has misappropriated any trade secrets of any other Person. Each technical employee, contractor or agent
of the Company and the Affiliates has executed a confidentiality and non-compete agreement. No employee, independent contractor or agent of the Company or any Affiliate is in default or breach of any term of any employment agreement, confidentiality
and non-compete agreement or similar agreement or contract relating in any way to the protection, ownership, development, use or transfer of Intellectual Property. The Company and each Affiliate has the right to use all software development tools,
library functions, compilers and other third party software that are material to the Business. 
  
 SECTION 3.12. Litigation. There are no Actions by or against the Company or any Affiliate or otherwise affecting any of the Assets or the Business pending before any Governmental Authority (or, to the best
knowledge of the Company, any Seller or any Founder after due inquiry, threatened to be brought by or before any Governmental Authority). None of the Company, the Affiliates or any material Asset is subject to any Governmental Order (nor, to the
best knowledge of the Company, any Seller or any Founder after due inquiry, are there any such Governmental Orders threatened to be imposed by any Governmental Authority) or any continuing order of, judgment, award, consent decree, 
  

 17 

 injunction, order or settlement or other similar written agreement with any Governmental Authority (nor, to the best
knowledge of the Company, any Seller or any Founder after due inquiry, is there any continuing investigation by any Governmental Authority). 
  
 SECTION 3.13. [Reserved].  
  
 SECTION 3.14. Insurance. Section 3.14 of the Disclosure Schedule lists all insurance policies issued in favor of the Company or any Affiliate, as
the case may be. 
  
 SECTION 3.15. Employee Benefit
Matters. (a) Plans and Material Documents. Section 3.15(a) of the Company Disclosure Schedule lists (i) all employee benefit plans and all bonus, stock option, stock purchase, restricted stock, incentive, deferred compensation, retiree
medical or life insurance, supplemental retirement, severance or other benefit plans, programs or arrangements, and all employment, termination, severance or other contracts or agreements, whether legally enforceable or not, to which the Company or
any Affiliate is a party, with respect to which the Company or any Affiliate has any obligation or that are maintained, contributed to or sponsored by the Company or any Affiliate for the benefit of any current or former employee, officer or
director of the Business, (ii) any contracts, arrangements or understandings between the Company or any Affiliate and any employee of or consultant to any thereof including any contracts, arrangements or understandings relating to a sale of the
Shares, the Registered Capital or the Business (collectively, the “Plans”). Each Plan is in writing and the Company has furnished the Purchaser with a true and complete copy of each Plan and has delivered to the Purchaser a true and
complete copy of each material document, if any, prepared in connection with each such Plan. There are no other employee benefit plans, programs, arrangements or agreements, whether formal or informal, whether in writing or not, to which the Company
or any Affiliate is a party, with respect to which the Company or any Affiliate has any obligation or that are maintained, contributed to or sponsored by the Company or any Affiliate for the benefit of any current or former employee, officer or
director of the Company or any Affiliate. Neither the Company nor any Affiliate has any express or implied commitment, whether legally enforceable or not, (i) to create, incur Liability with respect to or cause to exist any other employee benefit
plan, program or arrangement, (ii) to enter into any contract or agreement to provide compensation or benefits to any individual or (iii) to modify, change or terminate any Plan, other than with respect to a modification, change or termination
required by applicable Law. 
  
 (b) Absence of Certain Types of
Plans. None of the Plans provides for the payment of separation, severance, termination or similar-type benefits to any person or obligates the Company or any Affiliate to pay separation, severance, termination or similar-type benefits solely or
partially as a result of any transaction contemplated by this Agreement and any Ancillary Agreements. None of the Plans provides for or promises retiree medical, disability or life insurance benefits to any current or former employee, officer or
director of the Company or any Affiliate. 
  
 (c)
Compliance. Each Plan is now and always has been operated in all material respects in accordance with its terms and the requirements of all applicable Law. The Company and each Affiliate have performed all obligations required to be performed
by it under, are not in any respect in default under or in violation of, and the Company has no knowledge of any default or violation by any party to, any Plan. No action, claim or proceeding is pending or, to the knowledge of the Company, any
Seller or any Founder, threatened with respect to any Plan (other than claims for benefits in the ordinary course) and no fact or event exists that could give rise to any such action, claim or proceeding. 
  

 18 

 (d) Plan Contributions and Funding. (i) All employer and employee contributions, premiums or
payments required to be made by applicable Law or by the terms of any Plan have been made on or before their due dates or, if applicable, accrued in accordance with applicable normal accounting practices. 
  
 (ii) The fair market value of the assets of each funded Plan, the liability
of each insurer for any Plan funded through insurance or the book reserve established for any Plan, together with any accrued contributions, is sufficient to procure or provide for the accrued benefit obligations, as of the date of this Agreement,
with respect to all current and former participants in such Plan according to the actuarial assumptions and valuations most recently used to determine employer contributions to such Plan and no transaction contemplated by this Agreement shall cause
such assets or insurance obligations to be less than such benefit obligations. 
  
 (e) Registration of Plans. Each Plan required to be registered has been registered and has been maintained in good standing with applicable regulatory authorities. 
  
 SECTION 3.16. Labor Matters. Neither the Company nor any Affiliate is
a party to any collective bargaining agreement or other labor union contract applicable to persons employed by the Company or any Affiliate or otherwise in the Business, and currently there are no organizational campaigns, petitions or other
unionization activities seeking recognition of a collective bargaining unit that could affect the Company, any Affiliate or the Business. There are no controversies, strikes, slowdowns or work stoppages pending or, to the best knowledge of the
Company, any Seller or any Founder, after due inquiry, threatened between the Company or any Affiliate and any of their respective employees, and neither the Company nor any Affiliate has experienced any such controversy, strike, slowdown or work
stoppage within the past three years. Neither the Company nor any Affiliate has breached or otherwise failed to comply with the provisions of any collective bargaining or union contract, and there are no grievances outstanding against the Company or
any Affiliate under any such agreement or contract that could materially and adversely affect the Company or any Affiliate. The Company and each Affiliate are currently in compliance with all applicable Law relating to the employment of labor,
including those related to wages, hours, collective bargaining and the payment and withholding of taxes and other sums as required by the appropriate Governmental Authority. There is no claim with respect to payment of wages, salary or overtime pay
that has been asserted or is now pending or threatened before any Governmental Authority with respect to any persons currently or formerly employed by the Company or any Affiliate. 
  
 SECTION 3.17. Employees of the Business. (a) Section 3.17(a) of the Company Disclosure Schedule lists the name, the
place of employment, the current salary rates, bonuses, deferred or contingent compensation, pension, social security and housing fund contributions, accrued vacation, severance and other like benefits paid or payable (in cash or otherwise) for the
month of April 2004, the date of employment and a description of the position and job function of each current salaried employee, officer, director, consultant or agent of the Company and each Affiliate who is employed or otherwise engaged in the
Business. 
  
 (b) All directors, officers, management employees,
and technical and professional employees of the Company and each Affiliate are under written obligation to the 
  

 19 

 Company and each Affiliate, as applicable, to maintain in confidence all confidential or proprietary information acquired
by them in the course of their employment and to assign to the Company and each Affiliate, as applicable, all inventions made by them within the scope of their employment during such employment and for a reasonable period thereafter. 
  
 SECTION 3.18. Certain Interests. (a) Except as set forth in Section
3.18(a) of the Disclosure Schedule, no officer, director, shareholder or Affiliate of the Company, any Affiliate, any Seller or any Founder, nor any Affiliate, relative or spouse of any such officer, director or shareholder or Affiliate: 

 
 (i) is a party to any agreement, contract, commitment,
arrangement or transaction with the Company or any Affiliate or is entitled to any payment or transfer of any Assets from the Company or any Affiliate or has any direct or indirect interest in any Asset; 
  
 (ii) has any direct or indirect financial interest in any
competitor, supplier or customer of the Company or any Affiliate or the Business; provided, however, that the ownership of securities representing no more than one percent of the outstanding voting power of any competitor, supplier or
customer, and which are also listed on any national securities exchange, shall not be deemed to be a “financial interest” so long as the Person owning such securities has no other connection or relationship with such competitor, supplier
or customer; or 
  
 (iii) has outstanding any
Indebtedness to the Company or any Affiliate. 
  
 (b) Except as
set forth in Section 3.18(a) of the Disclosure Schedule, neither the Company nor any Affiliate has any Liability or any other obligation of any nature whatsoever to any Founder or Seller or to any officer, director or shareholder of the Company or
any Affiliate or to any relative or spouse or Affiliate of any Founder or Seller or any such officer, director or shareholder. 
  
 SECTION 3.19. Taxes. The Company and the Affiliates have timely filed, or will timely filed, all Tax returns and reports required to be file by
them with respect to Taxes for any period ending on or before the Closing Date, and all such Tax returns and reports are, or will be (as of the Closing Date), true, accurate and complete in all material respects. All Taxes shown as due and owing on
such Tax returns have been paid or will be paid by the Closing Date except such Taxes that are being contested in good faith and have been adequately reserved for. Neither the Company nor any Affiliate has granted any waiver of any statute of
limitations with respect to Taxes or agreed to any extension of time with respect to any Tax assessment or deficiency. Neither the Company nor any of its Affiliates is a party to any income tax allocation or sharing agreement. There are no pending
or, to the best knowledge of the Company, the Sellers and the Founders after due inquiry, threatened actions or proceedings for the assessment or collection of Taxes against the Company or any Affiliate. 
  
 SECTION 3.20. Assets. The Company and the Affiliates own, lease or
have the legal right to use all of the material Assets, including, without limitation, the Real Property and personal property, used or intended to be used in the conduct of the Business or otherwise owned, leased or used by the Company or any
Affiliate and, with respect to 
  

 20 

 contract rights, is a party to and enjoys the right to the benefits of all Material Contracts. Either the Company or an
Affiliate has good and marketable title to, or, in the case of leased or subleased Assets, valid and subsisting leasehold interests in, all the Assets, free and clear of all Encumbrances, except Permitted Encumbrances. 
  
 SECTION 3.21. Books and Records. The minute books and similar records
of the Company and the Affiliates accurately reflect all material actions taken by the shareholders, board of directors and committees of the board of directors of the Company and the Affiliates at any meetings thereof, and of all written consents
executed in lieu of a meeting, through the date of this Agreement. 
  
 SECTION 3.22. Certain Business Practices. To the knowledge of the Company, the Sellers and the Founders, none of the Company, any Affiliate, any Seller or Founder or any director or officer of the Company, any Affiliate or any Seller
has, on behalf of the Company or any Affiliate, (a) used any funds of the Company or any Affiliate for unlawful contributions, gifts, entertainment or other unlawful payments relating to political activity or any activity relating to the Business or
(b) violated any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
  
 SECTION 3.23. Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based upon
arrangements made by or on behalf of the Founders, the Sellers, the Company or any of the Affiliates.  
  
 SECTION 3.24. Seller Authority; No Conflict; Required Filings and Consents. (a) Each of the Sellers and the Founders has full legal capacity and
authority to execute and deliver this Agreement and the Equity Transfer Agreement and to perform such person’s obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. This Agreement and the
Equity Transfer Agreement have been duly and validly executed and delivered by the Sellers and the Founders and (assuming due authorization, execution and delivery by the Purchaser and the Company) this Agreement and the Equity Transfer Agreement
each constitutes a legal, valid and binding obligation of each of the Sellers and the Founders enforceable against such Seller or Founder in accordance with their respective terms. 
  
 (b) The execution and delivery of this Agreement and the Equity Transfer Agreement by each of the Sellers and the Founders,
do not, and the performance of this Agreement and the Equity Transfer Agreement by such Seller or Founder will not (i) assuming that all consents, approvals, authorizations and other actions described in Section 3.03(c) have been obtained and all
filings and obligations described in Section 3.03(c) have been made, conflict with or violate any Law applicable to such Seller or Founder or by which the Company or any Affiliate or any Asset or any other property or asset of such Seller or Founder
is bound or affected, or (ii) result in any breach of or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any right of termination, amendment, acceleration or cancellation
of, or result in the creation of any Encumbrance on any capital stock or registered capital of the Company or any Affiliate, including, the Shares or Registered Capital or on any Assets or any other property or asset of such Founder or Seller
pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation, except to the extent that such breach or default does not have a Material Adverse Effect on the Business, the
Company or its Affiliates. Each Founder has 
  

 21 

 irrevocably waived the right of first refusal that such Founder has with respect to the transactions contemplated by the
Equity Transfer Agreement under applicable Laws and Article 7(6) of the Articles of Association of Goodfeel, as amended. 
  
 (c) Except as disclosed in Section 3.03(c) of the Disclosure Schedule, the execution and delivery of this Agreement and the Equity Transfer Agreement by
each Seller and Founder do not, and the performance of this Agreement and the Equity Transfer Agreement by such Founder will not, require any consent, approval, authorization or permit of, or filing with or notification to, any third party or any
Governmental Authority. 
  
 SECTION 3.25. [Reserved]
 
  
 SECTION 3.26. Full Disclosure. (a) Neither
the Company, any Seller nor any Founder is aware of any facts pertaining to the Company, any Affiliate, the Assets or the Business which could affect adversely affect the Company, any Affiliate, the Assets or the Business or which are likely in the
future to adversely affect the Company, any Affiliate, the Assets or the Business and which have not been disclosed in this Agreement or the Disclosure Schedule, or otherwise disclosed to the Purchaser by the Company in writing. 

 
 (b) No representation or warranty of the Company, the Sellers or the
Founders in this Agreement, nor any statement or certificate furnished or to be furnished to the Purchaser pursuant to this Agreement or the Ancillary Agreements, or in connection with the transactions contemplated by this Agreement or the Ancillary
Agreements, contains or will contain any untrue statement of material fact, or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
 OF THE PURCHASER 
  
 As an
inducement to the Company, the Sellers and the Founders to enter into this Agreement, the Purchaser hereby represents and warrants to the Company, each Seller and each Founder as follows: 
  
 SECTION 4.01. Organization and Qualification. The Purchaser is a
corporation duly incorporated, validly existing and in good standing under the laws of the Cayman Islands and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as it is now being
conducted. The Purchaser is duly qualified or licensed as a foreign corporation to do business, and is in good standing, in each jurisdiction where the character of the properties owned, leased or operated by it or the nature of its business makes
such qualification or licensing necessary. 
  
 SECTION 4.02.
Authority; No Conflict; Required Filings and Consents. (a) The Purchaser has all necessary corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement by the Purchaser and the consummation by the Purchaser of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action and no other
corporate proceedings on 
  

 22 

 the part of the Purchaser are necessary to authorize this Agreement or to consummate the transactions contemplated
hereby. This Agreement has been duly and validly executed and delivered by the Purchaser and, assuming the due authorization, execution and delivery by the Company, the Sellers and the Founders, constitutes a legal, valid and binding obligation of
the Purchaser, enforceable against the Purchaser in accordance with its terms. 
  
 (b) The execution and delivery of this Agreement by the Purchaser do not, and the performance of this Agreement by the Purchaser will not, (i) conflict with or violate the organizational documents of the Purchaser,
(ii) conflict with or violate any Law applicable to the Purchaser or by which any property or asset of the Purchaser is bound or affected, or (iii) result in any breach of or constitute a default (or an event which with notice or lapse of time or
both would become a default) under, or give to others any right of termination, amendment, acceleration or cancellation of, or result in the creation of any Encumbrance on any property or asset of the Purchaser pursuant to, any note, bond, mortgage,
indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation. 
  
 (c) The execution and delivery of this Agreement by the Purchaser do not, and the performance of this Agreement by the Purchaser will not, require any
consent, approval, authorization or permit of, or filing with or notification to, any third party or Governmental Authority, other than any of the foregoing required under US securities laws or which will not materially impair the Purchaser’s
ability to perform its obligations hereunder. 
  
 SECTION 4.03.
Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the
Purchaser. 
  
 ARTICLE V 
  
 ADDITIONAL AGREEMENTS 
  
 SECTION 5.01. Conduct of Business. (a) The Company, the Sellers and
the Founders covenant and agree that, between the date hereof and the time of the Closing, neither the Company nor any Affiliate shall conduct its business other than in the ordinary course and consistent with the Company’s and such
Affiliate’s prior practice. Without limiting the generality of the foregoing, the Company shall, and the Company and the Sellers shall cause each Affiliate to (i) continue their advertising and promotional activities, and pricing and purchasing
policies, in accordance with past practice; (ii) not shorten or lengthen the customary payment cycles for any of their payables or receivables; (iii) use their best efforts to (A) preserve intact their business organizations and the business
organization of the Business, (B) keep available to the Purchaser the services of the employees of the Company and each Affiliate, (C) continue in full force and effect without material modification all existing policies or binders of insurance
currently maintained in respect of the Company, each Affiliate and the Business, (D) preserve their current relationships with their customers, suppliers and other Persons with whom they have had significant business relationships and (E) maintain
and protect its interest in each item of Owned Intellectual Property and Licensed Intellectual Property; and (iv) not engage in any practice, take any action, fail to take any action or enter into any transaction which could cause any representation
or warranty of the Company, the Sellers and the Founders to be untrue or result in a breach of any covenant made by the Company, the Sellers and the Founders in this Agreement. 
  

 23 

 (b) The Company, the Sellers and the Founders covenant and agree that, between the date hereof and the
time of the Closing, without the prior written consent of the Purchaser, neither the Company nor any Affiliate will: 
  
 (i) permit or allow any of the Assets to be subjected to any Encumbrance, other than Permitted Encumbrances; 
  
 (ii) amend, terminate, cancel or compromise any material
claims of, or waive any other rights of substantial value to, the Company or any Affiliate; 
  
 (iii) sell, transfer, lease, sublease, license or otherwise dispose of any properties or assets, real, personal or mixed, with a value in
excess of U.S.$12,000 individually or in the aggregate (including, without limitation, leasehold interests and intangible property); 
  
 (iv) issue or sell any share capital, notes, bonds or other securities, or any option, warrant or other right to acquire the same, of the
Company or any Affiliate; 
  
 (v) redeem any of
the share capital or declare, make or pay any dividends or distributions (whether in cash, securities or other property) to the holders of share or registered capital of the Company or any Affiliate or otherwise, other than dividends, distributions
and redemptions declared, made or paid by any Affiliate solely to the Company; 
  
 (vi) merge with, enter into a consolidation with or acquire an interest of 5% or more in any Person or acquire a substantial portion of
the assets or business of any Person or any division or line of business thereof, or otherwise acquire any material assets other than in the ordinary course of business consistent with past practice; 
  
 (vii) make any capital expenditure or commitment for any
capital expenditure in excess of U.S. $12,000 individually or in the aggregate; 
  
 (viii) incur any Indebtedness in excess of U.S.$12,000 individually or in the aggregate; 
  
 (ix) fail to pay any creditor any amount owed to such
creditor when due; 
  
 (x) (i) grant any
increase, or announce any increase, in the wages, salaries, compensation, bonuses, incentives, pension or other benefits payable by the Company or any Affiliate to any of its employees, including, without limitation, any increase or change pursuant
to any plan, or (ii) establish or increase or promise to increase any benefits under any plan, in either case, except as required by Law for any severance payment; 
  
 (xi) enter into any agreement, arrangement or transaction with any of its directors, officers, employees or
shareholders (or with any relative, beneficiary, spouse or Affiliate of such Persons); 
  
 (xii) allow any Permit that was issued or relates to the Company or any Affiliate or otherwise relates to the Business to lapse or
terminate or fail to renew any insurance policy or Permit that is scheduled to terminate or expire prior to that date that is 45 calendar days after the Closing Date; 
  

 24 

 (xiii) amend, modify or consent to the termination of any Material Contract or the
Company’s or any Affiliate’s rights thereunder; 
  
 (xiv) amend or restate the Memorandum of Association and Articles of Association (or other organizational documents) of the Company or any Affiliate, except as provided in the Equity Transfer Agreement; 
  
 (xv) change any content of Operational Records; or

  
 (xvi) agree, whether in writing or otherwise,
to take any of the actions specified in this Section 5.01 or grant any options to purchase, rights of first refusal, rights of first offer or any other similar rights or commitments with respect to any of the actions specified in this Section 5.01,
except as expressly contemplated by this Agreement and the Ancillary Agreements. 
  
 SECTION 5.02. Access to Information. From the date hereof until the Closing, upon reasonable notice, the Company shall cause its officers, directors, employees, agents, representatives, accountants and counsel
and shall cause the Affiliates and each of the Affiliates’ officers, directors, employees, agents, representatives, accountants and counsel to afford the officers, employees, agents, accountants, counsel, financing sources and representatives
of the Purchaser reasonable access, during normal business hours, to the offices, properties, plants, other facilities, books and records of the Company and each Affiliate and to those officers, directors, employees, agents, accountants and counsel
of the Company and of each Affiliate who have any knowledge relating to the Company, any Affiliate or the Business. 
  
 SECTION 5.03. Confidentiality. The Company, the Sellers and the Founders agree to, and shall cause their respective agents, representatives,
affiliates, employees, officers and directors to: (a) treat and hold as confidential all (and not disclose or provide access to any Person to) any information relating to trade secrets, processes, patent and trademark applications, product
development, price, customer and supplier lists, pricing and marketing plans, policies and strategies, details of client and consultant contracts, operations methods, product development techniques, business acquisition plans, new personnel
acquisition plans and any and all other confidential or proprietary information with respect to the Business, the Company and each Affiliate, (b) in the event that the Company, any Seller, Founder or any such agent, representative, affiliate,
employee, officer or director becomes legally compelled to disclose any such information, provide the Purchaser with prompt written notice of such requirement so that the Purchaser, the Company or any Affiliate may seek a protective order or other
remedy or waive compliance with this Section 5.03, (c) in the event that such protective order or other remedy is not obtained, or the Purchaser waives compliance with this Section 5.03, furnish only that portion of such confidential information
which is legally required to be provided and exercise its best efforts to obtain assurances that confidential treatment will be accorded such information, and (d) promptly furnish (prior to, at, or as soon as practicable following, the Closing) to
the Company or the Purchaser any and all copies (in whatever form or medium) of all such confidential information (and any analysis, compilations, studies or other documents prepared in whole or in part on the basis thereof) then in the possession
of the Sellers and the Founders or any of their agents, representatives, affiliates, employees, officers and directors and destroy any and all additional copies then in the possession of the Sellers and the Founders or any of their agents,
representatives, affiliates, employees, officers and directors of such information, analyses, compilations, studies or other documents; provided, however, that this sentence shall not 
  

 25 

 apply to any information that, at the time of disclosure, is available publicly and was not disclosed in breach of this
Agreement or other obligation of confidentiality by the Company (prior to the Closing) or the Sellers or the Founders or any of their agents, representatives, affiliates, employees, officers or directors; and provided further that,
with respect to Intellectual Property, specific information shall not be deemed to be within the foregoing exception merely because it is embraced in general disclosures in the public domain. In addition, with respect to Intellectual Property, any
combination of features shall not be deemed to be within the foregoing exception merely because the individual features are in the public domain unless the combination itself and its principle of operation are in the public domain. The Company, the
Sellers and the Founders agree and acknowledge that remedies at law for any breach of its obligations under this Section 5.03 are inadequate and that in addition thereto the Purchaser shall be entitled to seek equitable relief, including injunction
and specific performance, in the event of any such breach. 
  
 SECTION 5.04. Regulatory and Other Authorizations; Notices and Consents. (a) The Company, the Sellers and the Founders shall use their best efforts to obtain (or cause the Affiliates to obtain) all authorizations, consents, orders
and approvals of all Governmental Authorities and officials that may be or become necessary for their execution and delivery of, and the performance of their obligations pursuant to, this Agreement and the Ancillary Agreements and will cooperate
fully with the Purchaser in promptly seeking to obtain all such authorizations, consents, orders and approvals. 
  
 (b) The Company, the Sellers and the Founders shall, or shall cause the Affiliates to, give promptly such notices to third parties and use its or their
best efforts to obtain such third party consents and estoppel certificates as the Purchaser may in its sole discretion deem necessary or desirable in connection with the transactions contemplated by this Agreement. 
  
 (c) The Purchaser shall cooperate and use all reasonable efforts to assist
the Company in giving such notices and obtaining such consents and estoppel certificates; provided, however, that the Purchaser shall have no obligation to give any guarantee or other consideration of any nature in connection with any
such notice, consent or estoppel certificate or to consent to any change in the terms of any agreement or arrangement which the Purchaser in its sole discretion may deem adverse to the interests of the Purchaser, the Company, any Affiliate or the
Business. 
  
 (d) None of the Company, the Sellers and the
Founders knows of any reason why all the consents, approvals and authorizations necessary for the consummation of the transactions contemplated by this Agreement and the Ancillary Agreement will not be received. 
  
 SECTION 5.05. Notice of Developments. Prior to the Closing, the
Company, the Sellers and the Founders shall promptly notify the Purchaser in writing of (a) all events, circumstances, facts and occurrences arising subsequent to the date of this Agreement which could result in any breach of a representation or
warranty or covenant of the Company, a Seller or a Founder in this Agreement, or which could have the effect of making any representation or warranty of the Company, a Seller or a Founder in this Agreement untrue or incorrect in any respect, and (b)
all other material developments affecting the Assets, Liabilities, business, condition (financial or otherwise), operations, results of operations, customer or supplier relations, employee relations, projections or prospects of the Company, any
Affiliate or the Business. 
  

 26 

 SECTION 5.06. No Solicitation or Negotiation. The Company, the Sellers and the Founders agree that
between the date of this Agreement and the earlier of (a) the Closing and (b) the termination of this Agreement without fault of the Company, the Affiliates, the Founders or the Sellers, none of the Company, the Affiliates, the Founders, the Sellers
or any of their respective Affiliates, officers, directors, representatives or agents will (i) solicit, initiate, consider, encourage or accept any other proposals or offers from any Person (A) relating to any acquisition or purchase of all or any
portion of the share or registered capital of the Company or any Affiliate or of the Assets (other than inventory to be sold in the ordinary course of business consistent with past practice), (B) to enter into any merger, consolidation or other
business combination with the Company or any Affiliate or (C) to enter into a recapitalization, reorganization or any other extraordinary business transaction involving or otherwise relating to the Company or any Affiliate or (ii) participate in any
discussions, conversations, negotiations and other communications regarding, or furnish to any other Person any information with respect to, or otherwise cooperate in any way, assist or participate in, facilitate or encourage any effort or attempt
by any other Person to seek to do, any of the foregoing. The Company, the Sellers and the Founders immediately shall cease and cause to be terminated all existing discussions, conversations, negotiations and other communications with any Persons
conducted heretofore with respect to any of the foregoing. The Company, the Sellers or the Founders, as the case may be, shall notify the Purchaser promptly if any such proposal or offer, or any inquiry or other contact with any Person with respect
thereto, is made and shall, in any such notice to the Purchaser, indicate in reasonable detail the identity of the Person making such proposal, offer, inquiry or contact and the terms and conditions of such proposal, offer, inquiry or contact. The
Company, the Sellers and the Founders agree not to, and to cause the Company and each Affiliate not to, without the prior written consent of the Purchaser, release any Person from, or waive any provision of, any confidentiality or standstill
agreement to which the Company, any Affiliate any Founder or any Seller is a party. 
  
 SECTION 5.07. Use of Intellectual Property. The Sellers and the Founders acknowledge that from and after the Closing, the name “Goodfeel”, “

” and all similar or related names, marks and logos (all of such names, marks and logos being the “Company Marks”) shall be owned by the Company or Goodfeel, that none of the Founders, the
Sellers or any of their Affiliates shall have any rights in the Company Marks and that none of the Founders, the Sellers or any of their Affiliates will contest the ownership or validity of any rights of the Purchaser, the Company or any Affiliate
in or to the Company Marks. 
  
 SECTION 5.08.
Non-Competition. (a) For a period of three (3) years after the Closing or, with respect to Kim Zhi Huan and Yang Xiang Hua, three (3) years after the termination of their employment with the Purchaser or one of its subsidiaries
(the “Restricted Period”), the Founders and the Sellers shall not engage, directly or indirectly, in any business anywhere in the PRC that manufactures, produces or supplies products or services of the kind manufactured, produced or
supplied by the Business, the Company, or any Affiliate as of the Closing Date or, without the prior written consent of the Purchaser, directly or indirectly, own an interest in, manage, operate, join, control, lend money or render financial or
other assistance to or participate in or be connected with, as an officer, employee, partner, stockholder, consultant or otherwise, any Person that competes with the Purchaser, the Business, the Company, or any Affiliate in manufacturing, producing
or supplying products or services of the kind produced or supplied by the Business, the Company, any Affiliate any Founder or any Seller as of the Closing Date; provided, however, that, for the purposes of this Section 5.08, ownership
of securities having no more than one percent of the outstanding 
  

 27 

 voting power of any competitor which are listed on any national securities exchange shall not be deemed to be in
violation of this Section 5.08 as long as the Person owning such securities has no other connection or relationship with such competitor.  
  
 (b) The Restricted Period shall be extended by the length of any period during which a Seller or a Founder is in breach of the terms of this Section 5.08.

  
 (c) The Sellers and Founders acknowledge that the covenants of
the Sellers and the Founders set forth in this Section 5.08 are an essential element of this Agreement and that, but for the agreement of the Sellers and the Founders to comply with these covenants, the Purchaser would not have entered into this
Agreement. The Sellers and the Founders acknowledge that this Section 5.08 constitutes an independent covenant and shall not be affected by performance or nonperformance of any other provision of this Agreement by the Purchaser. The Sellers and
Founders have independently consulted with their counsel and after such consultation agree that the covenants set forth in this Section 5.08 are reasonable and proper. 
  
 SECTION 5.09. Release of Indemnity Obligations. The Sellers and the Founders covenant and agree, on or prior to the
Closing, to execute and deliver to the Company, for the benefit of the Company and each Affiliate, a general release and discharge, in form and substance satisfactory to the Purchaser, releasing and discharging the Company and Affiliate from any and
all obligations to indemnify the Sellers and the Founders or otherwise hold any of them harmless pursuant to any agreement or other arrangement entered into prior to the Closing. 
  
 SECTION 5.10. Equity Transfer. The Founders shall transfer their respective equity interests in Goodfeel to the
Purchaser or the Purchaser Designees pursuant to the Equity Transfer Agreement. 
  
 SECTION 5.11. Government Approvals. As soon as is reasonably practicable, the Sellers, the Founders and the Company shall obtain, or cause to be obtained, (i) the registration of the Technical Service Agreement
with the Beijing Municipal Bureau of Commerce and (ii) the issuance of an amended Business License of Goodfeel by the Beijing Municipal Administration of Industry and Commerce, pursuant to which Goodfeel’s scope of business has been expanded to
include Internet information services (including ring tone downloading services for mobile phones). 
  
 SECTION 5.12. Further Action. Each of the parties hereto shall use all reasonable efforts to take, or cause to be taken, all appropriate action, do
or cause to be done all things necessary, proper or advisable under applicable Law, and to execute and deliver such documents and other papers, as may be required to carry out the provisions of this Agreement or the Ancillary Agreements and
consummate and make effective the transactions contemplated by this Agreement or the Ancillary Agreements. 
  

 28 

 ARTICLE VI 
  
 CONDITIONS TO THE TRANSACTIONS 
  
 SECTION 6.01. Conditions to Obligations of the Company, the Sellers and the Founders. The obligations of the Company, the Sellers and the Founders
to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or written waiver, at or prior to the Closing, of each of the following conditions: 
  
 (i) Representations, Warranties and Covenants. The representations and warranties of the Purchaser
contained in this Agreement shall have been true and correct when made and shall be true and correct in all material respects as of the Closing, except to the extent such representations and warranties are as of another date, in which case, such
representations and warranties shall be true and correct as of that date, in each case, with the same force and effect as if made as of the Closing Date, other than such representations and warranties as are made as of another date, the covenants
and agreements contained in this Agreement to be complied with by the Purchaser on or before the Closing Date shall have been complied with in all material respects, and the Sellers shall have received a certificate from the Purchaser to such effect
signed by a duly authorized officer thereof; and 
  
 (ii) No Proceeding or Litigation. No Action shall have been commenced by or before any Governmental Authority against either the Company or the Purchaser, seeking to restrain or materially and adversely alter the transactions
contemplated by this Agreement which is likely to render it impossible or unlawful to consummate such transactions; provided, however, that the provisions of this Section 6.01(ii) shall not apply if the Company or any Seller or Founder
has directly or indirectly solicited or encouraged any such Action. 
  
 SECTION 6.02. Conditions to Obligations of the Purchaser. The obligations of the Purchaser to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or written waiver, at or prior to the
Closing, of each of the following conditions: 
  
 (i) Representations, Warranties and Covenants. The representations and warranties of the Company, a Seller or a Founder contained in this Agreement (i) that are not qualified by “materiality” or “Material Adverse
Effect” shall have been true and correct in all material respects when made and shall be true and correct in all material respects as of the Closing Date with the same force and effect as if made as of the Closing Date and (ii) that are
qualified by “materiality” or “Material Adverse Effect” shall have been true and correct when made and shall be true and correct as of the Closing Date, except to the extent such representations and warranties are as of another
date, in which case, such representations and warranties shall be true and correct as of that date, in each case, with the same force and effect as if made as of the Closing Date, other than such representations and warranties as are made as of
another date, the covenants and agreements contained in this Agreement to be complied with by the Company, the Sellers or the Founders on or before the Closing Date shall have been complied with, and the Purchaser shall have received a certificate
of the Company and the Sellers signed by a duly authorized officer thereof and of the Founders and the Sellers to such effect; 
  

 29 

 (ii) No Proceeding or Litigation. No Action shall have been commenced or
threatened by or before any Governmental Authority against either the Company or the Purchaser, seeking to restrain or materially and adversely alter the transactions contemplated by this Agreement which, in the reasonable, good faith determination
of the Purchaser, is likely to render it impossible or unlawful to consummate such transactions or which could have a Material Adverse Effect or otherwise render inadvisable, in the sole discretion of the Purchaser, the consummation of the
transactions contemplated by this Agreement; 
  
 (iii) Consents and Approvals. Except for any items set forth in the Equity Transfer Agreement which are post Closing deliveries, the Purchaser, the Company and Goodfeel shall have received, each in form and substance satisfactory to
the Purchaser, all authorizations, consents, orders and approvals of all Governmental Authorities and officials which the Purchaser in its sole discretion deems necessary or desirable for the consummation of the transactions contemplated by this
Agreement and the Ancillary Agreements, including, without limitation, (i) the approval of the Equity Transfer Agreement by the Beijing Telecommunications Bureau, and (ii) the registration of the Technical Service Agreement with the Beijing
Municipal Bureau of Commence; 
  
 (iv) Equity
Transfer Agreement. Except for any items set forth in the Equity Transfer Agreement which are post Closing deliveries, the transactions contemplated by the Equity Transfer Agreements shall have been consummated and all conditions precedent
thereunder shall have been fully satisfied; 
  
 (v) Employment Contracts. Each of Kim Zhi Huan and Yang Xiang Hua shall have entered into employment contracts with the Purchaser or one of its subsidiaries for an employment term of no less than two (2) years commencing from the
Closing Date and employee confidentiality and non-compete agreements for a term of three (3) years commencing after the termination of their employment with the Purchaser or one of its subsidiaries, in each case substantially in the form
satisfactory to the Purchaser and on terms not more favorable to such individuals than the current terms of employment between Goodfeel and Kim Zhi Huan or Yang Xiang Hua (as applicable) (collectively, the “Employment Contracts”),
and such Employment Contracts shall be valid and binding with full force and effect; 
  
 (vi) No Material Adverse Effect. No event or events shall have occurred, or be reasonably likely to occur, which, individually or
in the aggregate, have, or could have, a Material Adverse Effect; 
  
 (vii) Resignation of Directors. The Purchaser shall have received the resignations, effect as of the Closing Date, of all of the directors and officers of the Company, except for such Persons as shall have been
designated in writing prior to the Closing by the Purchaser to the Company; and 
  
 (viii) Opinion of Counsel. An opinion of counsel to the Sellers and Founders, satisfactory in form and substance to the Purchaser,
shall have been delivered to the Purchaser. 
  

 30 

 ARTICLE VII 
  
 INDEMNIFICATION 
  
 SECTION 7.01. Survival of Representations and Warranties. The representations and warranties of the Company, a Seller or a Founder contained in
this Agreement and the Ancillary Agreements shall survive the Closing until the third anniversary of the Closing Date; provided, however, that (i) the representations and warranties made pursuant to Sections 3.01, 3.02, 3.03, 3.04,
3.05, 3.24, 3.25 and 3.26 shall survive the third anniversary of the Closing and continue thereafter, (ii) the representations and warranties made pursuant to Sections 3.11, 3.13 and 3.19 shall survive the Closing until the expiration of the
applicable statute of limitations (giving effect, in the case of tax matters, to any waiver, mitigation or extension thereof). Neither the period of survival nor the liability of the Company, the Sellers and the Founders with respect to the
Company’s, the Sellers’ and the Founder’s representations and warranties shall be reduced by any investigation made at any time by or on behalf of the Purchaser. If written notice of a claim has been given prior to the expiration of
the applicable representations and warranties by the Purchaser to the Company, any Seller or Founder, then the relevant representations and warranties shall survive as to such claim, until such claim has been finally resolved. 
  
 SECTION 7.02. Indemnification by the Sellers and the Founders. (a) The
Purchaser and its affiliates, officers, directors, employees, agents, successors and assigns (each a “Purchaser Indemnified Party”) shall be indemnified and held harmless by the Sellers and the Founders, jointly and severally, for
and against any and all Liabilities, losses, diminution in value, damages, claims (including, without limitation, claims by any third party against the Company or any Affiliate or the Purchaser alleging that the Company or any Affiliate infringed,
misappropriated or otherwise violated the Intellectual Property of such third party during any period prior to the Closing), costs and expenses (including, without limitation, costs and expenses resulting from the correction or rectification by the
Purchaser, the Company or any Affiliate after the Closing of any improper use, infringement, misappropriation or other violation by the Company or any Affiliate of the Intellectual Property of any third party during any period prior to the Closing)
actually suffered or incurred by them (including, without limitation, any Action brought or otherwise initiated by any of them) (hereinafter a “Loss”), arising out of or resulting from: 
  
 (i) the breach of any representation or warranty made by the
Company, a Seller or a Founder contained in this Agreement or in the Equity Transfer Agreement (it being understood that such representations and warranties shall be interpreted without giving effect to any limitations or qualifications as to
“materiality” (including the word “material”) or “Material Adverse Effect” set forth therein); or 
  
 (ii) the breach of any covenant or agreement by the Company, a Seller or a Founder contained in this Agreement or in the Equity Transfer
Agreement; and 
  
 (iii) fraud, deceit or willful
violation of Law by the Company, any Seller or any Founder. 
  
 To
the extent that a Seller’s and a Founders’ undertakings set forth in this Section 7.02 may be unenforceable, the Sellers and the Founders shall contribute the maximum amount that it is permitted to contribute under applicable Law to the
payment and satisfaction of all Losses incurred by the Purchaser Indemnified Parties. 
  

 31 

 (b) A Purchaser Indemnified Party shall give the Sellers and the Founders notice of any matter which a
Purchaser Indemnified Party has determined has given or could give rise to a right of indemnification under this Agreement within 60 days of such determination, stating the amount of the Loss, if known, and method of computation thereof, and
containing a reference to the provisions of this Agreement in respect of which such right of indemnification is claimed or arises. The obligations and Liabilities of the Sellers and the Founders under this Article VII with respect to Losses arising
from claims of any third party which are subject to the indemnification provided for in this Article VII (“Third Party Claims”) shall be governed by and be contingent upon the following additional terms and conditions: if a
Purchaser Indemnified Party shall receive notice of any Third Party Claim, the Purchaser Indemnified Party shall give the Sellers and the Founders notice of such Third Party Claim within 30 days of the receipt by the Purchaser Indemnified Party of
such notice; provided, however, that the failure to provide such notice shall not release the Sellers and the Founders from any of their obligations under this Article VII except to the extent that the Sellers and the Founders are
materially prejudiced by such failure and shall not relieve the Sellers or the Founders from any other obligation or Liability that such individuals may have to any Purchaser Indemnified Party otherwise than under this Article VII. If the Sellers
and the Founders acknowledge in writing its obligation to indemnify the Purchaser Indemnified Party hereunder against any Losses that may result from such Third Party Claim, then the Sellers and the Founders shall be entitled to assume and control
the defense of such Third Party Claim at their expense and through counsel of their choice if they give notice of their intention to do so to the Purchaser Indemnified Party within five days of the receipt of such notice from the Purchaser
Indemnified Party; provided, however, that if there exists or is reasonably likely to exist a conflict of interest that would make it inappropriate in the judgment of the Purchaser Indemnified Party in its sole and absolute discretion
for the same counsel to represent both the Purchaser Indemnified Party and the Sellers/the Founders, then the Purchaser Indemnified Party shall be entitled to retain its own counsel in each jurisdiction for which the Purchaser Indemnified Party
determines counsel is required, at the expense of the Sellers and the Founders. In the event that the Sellers and Founders exercise the right to undertake any such defense against any such Third Party Claim as provided above, the Purchaser
Indemnified Party shall cooperate with the Sellers and the Founders in such defense and make available to the Sellers and the Founders, at the Sellers’ and the Founders’ expense, all witnesses, pertinent records, materials and information
in the Purchaser Indemnified Party’s possession or under the Purchaser Indemnified Party’s control relating thereto as is reasonably required by the Sellers and the Founders. Similarly, in the event the Purchaser Indemnified Party is,
directly or indirectly, conducting the defense against any such Third Party Claim, the Sellers and the Founders shall cooperate with the Purchaser Indemnified Party in such defense and make available to the Purchaser Indemnified Party, at the
Sellers’ and the Founders’ expense, all such witnesses, records, materials and information in the Sellers’ and the Founders’ possession or under the Sellers’ and the Founders’ control relating thereto as is reasonably
required by the Purchaser Indemnified Party. No such Third Party Claim may be settled by the Sellers and the Founders without the prior written consent of the Purchaser Indemnified Party. 
  
 (c) In the event that (A) a Purchaser Indemnified Party claims an indemnification payment is due pursuant to Section
7.02(a), the Purchaser may withhold a portion of the Total Purchase Price which is payable after the date hereof under Section 2.2(b), up to the amount not more than the amount of the indemnifiable Loss in dispute. 
  

 32 

 (d) Notwithstanding the other provisions of this Article VII, in the event a Purchaser Indemnified Party
has a claim with respect to this Agreement or any Ancillary Agreement, it may proceed to collect and satisfy the same against any Seller or Founder pursuant to any right, remedy or relief available at Law. 
  
 ARTICLE VIII 
  
 TERMINATION, AMENDMENT AND WAIVER 
  
 SECTION 8.01. Termination. (a) This Agreement and the Equity Transfer Agreement may be terminated at any time prior to the Closing:

  
 (i) by the Purchaser by delivering written
notice to the Company and the Sellers at any time on or before 5:00 p.m., Beijing time, on May 21, 2004, if its termination is as a result of its good faith determination that, based upon the Purchaser’s due diligence review, the Company’s
and its Affiliates’ Business, operations, assets, financial statements, or business prospects are materially inferior to the reasonably ascertainable status of such matters presented to the Purchaser prior to the date hereof; 
  
 (ii) by the Purchaser if, between the date hereof and the
Closing: (i) an event or condition occurs that has resulted in a Material Adverse Effect, (ii) any representations and warranties of the Company, a Seller or a Founder contained in this Agreement or the Equity Transfer Agreement (1) that are not
qualified by “materiality” or “Material Adverse Effect” shall not have been true and correct in all material respects when made or (2) that are qualified by “materiality” or “Material Adverse Effect” shall not
have been true and correct when made, (iii) the Company, the Sellers and the Founders shall not have complied with the covenants or agreements contained in this Agreement or the Equity Transfer Agreement to be complied with by it, or (iv) the
Company or any Affiliate makes a general assignment for the benefit of creditors, or any proceeding shall be instituted by or against the Company or any Affiliate seeking to adjudicate any of them a bankrupt or insolvent, or seeking liquidation,
winding up or reorganization, arrangement, adjustment, protection, relief or composition of its debts under any Law relating to bankruptcy, insolvency or reorganization; 
  
 (iii) by the Purchaser if the Closing shall not have occurred by June 30, 2004; provided,
however, that the right to terminate this Agreement under this Section 8.01(ii) shall not be available to the Purchaser if its failure to fulfill any obligation under this Agreement or the Equity Transfer Agreement or its misrepresentation
shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to such date; 
  
 (iv) by either the Purchaser or the Company in the event that any Governmental Authority shall have issued an order, decree or ruling or
taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or other action shall have become final and nonappealable; or 
  
 (v) by the mutual written consent of the Company, the
Purchaser, the Sellers and the Founders. 
  

 33 

 (b) Notwithstanding the foregoing, the Purchaser shall have the right to rescind this Agreement and the
Equity Transfer Agreement at any time after the Closing by a written notice to the Company, the Sellers and the Founders in the event that (i) the Purchaser has sufficient evidence to determine that any revenue reported and recorded by Goodfeel in
its books was not (A) bona fide revenue generated from the value-added mobile data communications services provided by Goodfeel and (B) confirmed and paid by any PRC mobile communications operator, or (ii) any of the Company, the Affiliates, the
Sellers or the Founders committed fraud in connection with the operation of the Business and/or the transactions contemplated by this Agreement and the Ancillary Agreements prior to or after the Closing. 
  
 SECTION 8.02. Effect of Termination. (a) In the event of termination
of this Agreement and the Equity Transfer Agreement as provided in Section 8.01(a), this Agreement and the Equity Transfer shall forthwith become void and there shall be no liability on the part of any party hereto except (a) as set forth in
Sections 5.03, 8.02(c) and 10.01; (b) as specifically set forth in the Equity Transfer Agreement and (b) that nothing herein shall relieve any party from liability for any breach of this Agreement or the Equity Transfer Agreement. 
  
 (b) In the event of the rescission of this Agreement and the Equity Transfer
Agreement as provided in Section 8.01 (b), this Agreement and the Equity Transfer Agreement shall forthwith be revoked and become void and the parties hereto shall be restored to the status quo ante as if this Agreement and the Equity Transfer had
not been entered into except that nothing herein shall relieve any of the Sellers and the Founders from liability for any breach of this Agreement or the Equity Transfer Agreement. For clarification, in the event of termination of this Agreement and
the Equity Transfer Agreement as provided in Section 8.01(a) or 8.01(b) prior to the Closing but after the Registration, the Purchaser or the Purchaser Designees, the Founders and Goodfeel shall transfer the Registered Capital back to the Founders.

  
 (c) In the event of termination of this Agreement and the
Equity Transfer Agreement as provided in Section 8.01(a) or 8.01(b), the Founders and the Sellers shall be jointly and severally responsible for returning the Deposit and the Equity Amount (if the Equity Amount was paid as set forth in Section
2.02(b)) to a bank account designated by the Purchaser or the Purchaser Designees in immediately available funds not later than three (3) Business Days after the termination of this Agreement. 
  
 SECTION 8.03. Amendment. This Agreement may not be amended or modified
except (a) by an instrument in writing signed by, or on behalf of, the Company, the Purchaser, the Sellers and the Founders or (b) by a waiver in accordance with Section 8.04. 
  
 SECTION 8.04. Waiver. Any party to this Agreement may (a) extend the time for the performance of any of the
obligations or other acts of the other parties, (b) waive any inaccuracies in the representations and warranties of the other parties contained herein or in any document delivered by the other parties pursuant hereto or (c) waive compliance with any
of the agreements of the other parties or conditions to such parties’ obligations contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party to be bound thereby. Any waiver of
any term or condition shall not be construed as a waiver of any subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this Agreement. The failure of any party to assert any of its
rights hereunder shall not constitute a waiver of any of such rights. All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available. 
  

 34 

 ARTICLE IX 
  
 POST CLOSING COVENANTS 
  
 SECTION 9.01. Post-Closing Employee Obligations. 
  
 The Company and its Affiliates, Sellers, and Founders shall, promptly following Closing, pay or perform, or procure the Company and its Affiliates to pay
or perform, all Employee Obligations (as defined below), or, if applicable, reimburse the Purchaser for the payment of such Employee Obligations. As used above, the term “Employee Obligations” means any and all obligations or Liabilities
of the Company or its Affiliates, or any Affiliate thereof, to any employees of the Company or its Affiliates, or any Affiliate thereof (the “Business Employees”), which are due to such Business Employee as of the date of the Closing
arising from the employment or prior employment of any such Business Employee by the Company or its Affiliates, or any Affiliate thereof, whether arising under applicable Laws or otherwise, including without limitation any such obligations or
Liabilities with respect to accrued salary, social security contributions, vacation or sick pay, or severance, “stay-pay,” or other benefits. 
  
 SECTION 9.02. Assistance with Goodfeel’s Trademark Application Assignment. 
  
 The Sellers and the Founders shall use their best efforts to assist and shall work with the Company, Goodfeel and the
Purchaser to cause Goodfeel’s trademark registration application, which was accepted by the PRC Trademark Office on 12 January 2004, and any registered trademarks thereunder, to be assigned to the Purchaser as the owner of such trademark
registration application and any registered trademarks thereunder. 
  
 SECTION 9.03. Assistance with Contract Renewal. 
  
 The Sellers and the Founders shall use their best efforts to assist and shall work with the Company, Goodfeel and the Purchaser to renew the Guangdong Mobile Cooperation Agreement and the China Mobile Cooperation
Agreement for a period of at least two years, which shall commence on January 1, 2005 and expire on December 31, 2006.  
  
 SECTION 9.04. Assistance with Certain Contract Termination. The Sellers and the Founders shall use their best efforts to assist and shall work with the
Company, Goodfeel and the Purchaser to terminate the two (2) fee-based cooperation agreements by and between Goodfeel and the Korean companies who are parties thereto, as more specifically described on Schedule 9.04 of the Disclosure Schedule.

  
 SECTION 9.05. Equity Transfer Agreement. The Sellers
and the Founders shall assist and work with the Company, Goodfeel and the Purchaser to (i) file any necessary changes with respect to the Equity Transfer Agreement with any Governmental Authority, including but not limited to any changes with
respect to the web name registration, the domain name registration and any tax certification, and (ii) file any necessary changes with respect to the ICP license, the Import-Export Enterprise Certification and the Hi-Tech Enterprise Approval
Certificate, as set forth in the Equity Transfer Agreement.  
  

 35 

 SECTION 9.06. Further Assurances At any time and from time to time, the Sellers and Founders, on
the one hand, and Purchaser, on the other hand, shall promptly execute, acknowledge and deliver any other assurances or documents reasonably requested by the other, as the case may be, and necessary for it, as the case may be, to satisfy its
respective obligations hereunder or obtain the benefits contemplated hereby 
  
 ARTICLE X. 
  
 GENERAL PROVISIONS

  
 SECTION 10.01. Expenses. Except as otherwise expressly
provided in this Agreement, all costs and expenses, including, without limitation, all fees and disbursements of counsel, accountants, financial advisors, experts and consultants incurred in connection with this Agreement and the transactions
contemplated by this Agreement shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred. All stamp duty payable under any applicable law in connection with the completion of the transactions
contemplated hereunder shall be borne by the Purchaser and the Seller in equal shares.  
  
 SECTION 10.02. Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon
receipt) by delivery in person, by overnight courier service, by telecopy or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this Section 10.02): 
  

	 	(a)	if to the Purchaser: 

  
 c/o Sohu.com Inc 
 15/F Tower 2 Bright China
Chang An Building 
 7 Jianguomen Nei Avenue 
 Beijing, China 
 100005 
 Attn: Carol Yu 
  
 with copies to
each of: 
  
 Goulston & Storrs, P.C. 
 400 Atlantic Avenue 
 Boston, MA 02110-3333

 USA 
 Attn: Timothy B.
Bancroft, Esq. 
  

 36 

 And 
  
 TransAsia Lawyers 
 Suite 3718 China World
Tower 1 
 1 Jianguomenwai Avenue 
 Beijing 100004 
 China 
 Attn: Philip Qu, Esq. 
  

	 	(b)	if to the Company, the Sellers or the Founders: 

  
 B901, COFCO Plaza 
 8 Jianguomennei Dajie

 Dong Cheng District 
 Beijing, PRC 
 Telephone: (8610) 8512-0660/1/2 
 Telecopy: (8610) 8512-0665 
 Attention: Kim Zhi Huan 
  
 SECTION 10.03. Third-Party Beneficiaries. Except for the provisions of
Article VII relating to indemnified parties, this Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other
Person, including, without limitation, any union or any employee or former employee of the Company, any legal or equitable right, benefit or remedy of any nature whatsoever, including, without limitation, any rights of employment for any specified
period, under or by reason of this Agreement. 
  
 SECTION 10.04.
Public Announcements. No party to this Agreement shall make, or cause to be made, any press release or public announcement in respect of this Agreement or the transactions contemplated by this Agreement or otherwise communicate with any news
media without prior notification to the other party, and the parties shall cooperate as to the timing and contents of any such press release or public announcement. 
  
 SECTION 10.05. Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of
being enforced by any rule of Law or public policy, all other terms, conditions and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or legal substance of the transactions contemplated by
this Agreement is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the fullest extent
possible. 
  
 SECTION 10.06. Assignment; Binding Effect.
Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties; provided,
that, the Purchaser may assign any of its rights, interests or obligations to any Affiliate or Affiliate of the Purchaser. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. 
  

 37 

 SECTION 10.07. Incorporation of the Disclosure Schedule and the Exhibits. The Disclosure Schedule
and all Exhibits attached hereto and referred to herein are hereby incorporated herein by reference and made a part of this Agreement for all purposes as if fully set forth herein. 
  
 SECTION 10.08. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of Delaware applicable to contracts executed in and to be performed in that State. 
  
 SECTION 10.09. Dispute Resolution. All disputes among the parties arising out of or relating to this Agreement shall be finally settled in
accordance with the Rules of Arbitration of the International Chamber of Commerce. The arbitral tribunal shall be composed of three arbitrators. One arbitrator shall be appointed by the Company, the Founders and the Sellers, one arbitrator shall be
appointed by the Purchaser, and the third arbitrator, who shall serve as Chairman of the arbitration panel, shall be appointed through the mutual agreement of the other two arbitrators. The place of arbitration shall be in Beijing, PRC. The arbitral
procedure shall be conducted in the English language. The arbitrators shall not have the power to add to, subtract from or modify any of the terms or conditions of this Agreement. The arbitrators shall be experienced and have knowledge in the
subject matter of the dispute. The resolution of any dispute by the arbitrators pursuant to this Section 10.09 shall be non-appealable, final, binding and conclusive on the parties to such dispute and may be enforced and entered as a judgment in any
court of law with jurisdiction thereof. The fees and disbursements of the arbitrators shall be allocated to the party against whom any dispute decided hereunder is resolved. Each of the parties hereby irrevocably agrees that any service of process
made with respect to a dispute under this Agreement may be made pursuant to the notice procedures set forth in Section 10.02. 
  
 SECTION 10.10. Headings The descriptive headings contained in this Agreement are included for convenience of reference only and shall not affect in
any way the meaning or interpretation of this Agreement. 
  
 SECTION 10.11. Counterparts This Agreement may be executed and delivered (including by facsimile transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which, when executed
and delivered, shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. 
  
 SECTION 10.12. Currency. Unless otherwise specified in this Agreement, all references to currency and monetary values set forth herein shall mean
U.S. Dollars, and all payments hereunder shall be made in U.S. Dollars. If any amount payable hereunder is expressed in RMB, such amount shall be translated into U.S. Dollars at a rate of exchange of U.S.$1.00 = RMB 8.27. 
  
 SECTION 10.13. Entire Agreement. This Agreement (including the
Exhibits and the Disclosure Schedule) and the Ancillary Agreements constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof and thereof. 
  
 [END OF PAGE] 
  

 38 

 IN WITNESS WHEREOF, each of the Purchaser, the Sellers, the Company and the Founders has duly executed,
or has caused to be duly executed by their respective officers thereunto duly authorized, this Agreement as of the date first written above. 
  

			
	SOHU.COM LIMITED
		
	By:	 	 /s/ Charles Zhang

	Name:	 	Charles Zhang
	Title:	 	Chairman and CEO
	
	MARVEL HERO LIMITED 

		
	By:	 	 /s/ Kim Zhi Huan

	Name:	 	Kim Zhi Huan
	Title:	 	Director
	
	SELLERS:
	
	KIM DONG GU
		
	By:	 	 /s/ Kim Dong Gu

	
	KIM ZHI HUAN
		
	By:	 	 /s/ Kim Zhi Huan

	
	FOUNDERS:
		
	 	 	 /s/ Li Ming Zhe

	 	 	LI MING ZHE
		
	 	 	 /s/ Yang Xiang Hua

	 	 	YANG XIANG HUA

  

 39 

 EXHIBIT A 
  
 THE SELLERS AND THE FOUNDERS 
  
 Part I: The Sellers’ Ownership Interests in the Company 
  

					
	 Name of the Sellers

	  	 Number of Shares of Common
 Stock Owned in the Company

	  	Percentage of
Ownership

	 Kim Zhi Huan
	  	1	  	50%
	 Kim Dong Gu
	  	1	  	50%

  
 Part II: The Founders

  

	
	 Name of the Founders

	 Li Ming Zhe

	 Yang Xiang Hua

  

 1 

 Part III: The Founders’ Ownership Interests in Goodfeel 
  

					
	 Name of Founders

	  	 Amount of Registered Capital
 Owned in Goodfeel

	  	Percentage of
Ownership

	 Li Ming Zhe
	  	RMB730,000	  	73%
	 Yang Xiang Hua
	  	RMB270,000	  	27%

  

 22004 Equity Incentive Plan

 Exhibit 10.1 
  
  
 MPS GROUP, INC. 
 2004 EQUITY INCENTIVE PLAN 

 Table of Contents 
  

							
	 	  	Page

	 ARTICLE 1 -
GENERAL PROVISIONS
	  	1
	 	  	1.1	  	 
Establishment and Purposes of Plan
	  	1
	 	  	1.2	  	 
Types of Awards
	  	1
	 	  	1.3	  	 
Effective Date
	  	1
		
	 ARTICLE 2 -
DEFINITIONS
	  	1
		
	 ARTICLE 3 -
ADMINISTRATION
	  	4
	 	  	3.1	  	 
General
	  	4
	 	  	3.2	  	 
Authority of the Committee.
	  	5
	 	  	3.3	  	 
Delegation of Authority
	  	5
	 	  	3.4	  	 
Award Agreements
	  	5
	 	  	3.5	  	 
Indemnification
	  	5
		
	 ARTICLE 4 -
SHARES SUBJECT TO THE PLAN
	  	5
	 	  	4.1	  	 
Number of Shares
	  	5
	 	  	4.2	  	 
Individual Limits
	  	6
	 	  	4.3	  	 
Adjustment of Shares
	  	7
		
	 ARTICLE 5 -
STOCK OPTIONS
	  	7
	 	  	5.1	  	 
Grant of Options
	  	7
	 	  	5.2	  	 
Agreement
	  	7
	 	  	5.3	  	 
Option Price
	  	7
	 	  	5.4	  	 
Duration of Options
	  	7
	 	  	5.5	  	 
Exercise of Options
	  	7
	 	  	5.6	  	 
Payment
	  	8
	 	  	5.7	  	 
Nontransferability of Options.
	  	8
	 	  	5.8	  	 
Purchased Options
	  	8
	 	  	5.9	  	 
Special Rules for ISOs
	  	8
		
	 ARTICLE 6 -
STOCK APPRECIATION RIGHTS
	  	8
	 	  	6.1	  	 
Grant of SARs
	  	8
	 	  	6.2	  	 
Tandem SARs
	  	9
	 	  	6.3	  	 
Payment
	  	9
	 	  	6.4	  	 
Exercise of SARs
	  	9
		
	 ARTICLE 7 -
RESTRICTED STOCK AND RESTRICTED STOCK UNITS
	  	9
	 	  	7.1	  	 
Grant of Restricted Stock
	  	9
	 	  	7.2	  	 
Restricted Stock Agreement
	  	9
	 	  	7.3	  	 
Nontransferability
	  	10
	 	  	7.4	  	 
Certificates
	  	10
	 	  	7.5	  	 
Dividends and Other Distributions
	  	10
	 	  	7.6	  	 
Restricted Stock Units (or RSUs)
	  	10
		
	 ARTICLE 8 -
PERFORMANCE SHARES
	  	11
	 	  	8.1	  	 
Grant of Performance Shares
	  	11
	 	  	8.2	  	 
Value of Performance Shares
	  	11
	 	  	8.3	  	 
Earning of Performance Shares
	  	11
	 	  	8.4	  	 
Form and Timing of Payment of Performance Shares
	  	11
	 	  	8.5	  	 
Nontransferability
	  	11

  

 -i- 

 Table of Contents 
 (continued) 
  

							
	 	  	Page

	 ARTICLE 9 -
PERFORMANCE MEASURES
	  	11
		
	 ARTICLE 10 -
BENEFICIARY DESIGNATION
	  	12
		
	 ARTICLE 11 -
DEFERRALS
	  	12
		
	 ARTICLE 12 -
WITHHOLDING
	  	12
	 	  	12.1	  	 
Tax Withholding
	  	12
	 	  	12.2	  	 
Share Withholding
	  	13
		
	 ARTICLE 13 -
FOREIGN EMPLOYEES
	  	13
		
	 ARTICLE 14 -
AMENDMENT AND TERMINATION
	  	13
	 	  	14.1	  	 
Amendment of Plan
	  	13
	 	  	14.2	  	 
Amendment of Award Agreement; Repricing
	  	13
	 	  	14.3	  	 
Termination of Plan
	  	13
	 	  	14.4	  	 

Detrimental Activity
	  	13
	 	  	14.5	  	 
Assumption or Cancellation of Awards
	  	14
		
	 ARTICLE 15 -
MISCELLANEOUS PROVISIONS
	  	14
	 	  	15.1	  	 
Restrictions on Shares
	  	14
	 	  	15.2	  	 
No Implied Rights
	  	14
	 	  	15.3	  	 
Compliance with Laws.
	  	15
	 	  	15.4	  	 
Successors
	  	15
	 	  	15.5	  	 
Tax Elections
	  	15
	 	  	15.6	  	 
Legal Construction.
	  	15

  

 -ii- 

 
MPS GROUP, INC. 
 2004 EQUITY INCENTIVE PLAN 
  
 
ARTICLE 1 - GENERAL PROVISIONS 
  
 1.1 
Establishment and Purposes of Plan. MPS Group, Inc., a Florida corporation (the “Company”), hereby establishes an equity incentive plan to be known as the “MPS Group, Inc. 2004 Equity Incentive
Plan” (the “Plan”), as set forth in this document. The objectives of the Plan are (i) to provide incentives to those individuals who contribute significantly to the long-term performance and growth of the Company and its affiliates;
and (ii) to attract, motivate and retain employees, directors, consultants, advisors and other persons who perform services for the Company by providing compensation opportunities that are competitive with other companies; and (iii) to align the
long-term financial interests of employees and other Eligible Participants with those of the Company’s stockholders. 
  
 1.2 
Types of Awards. Awards under the Plan may be made to Eligible Participants who are employees in the form of (i) Incentive Stock Options, (ii) Nonqualified Stock Options, (iii) Stock Appreciation Rights, (iv)
Restricted Stock, (v) Restricted Stock Units, (vi) Performance Shares, or (vii) any combination of the foregoing. Awards under the Plan may be made to Eligible Participants who are not employees in the form of (i) Nonqualified Stock Options, (ii)
Stock Appreciation Rights; (iii) Restricted Stock; and (iv) Restricted Stock Units, or (v) any combination of the foregoing. 
  
 1.3 
Effective Date. The Plan shall be effective upon approval by the Company’s stockholders (the “Effective Date”). 
  

ARTICLE 2 - DEFINITIONS 
  
 Except where the context otherwise indicates, the following definitions apply: 
  
 2.1 “Agreement” means the written agreement evidencing an Award granted to the Participant under the Plan. 
  
 2.2 “Award” means an award granted to a Participant under the Plan that is an Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Performance Share, or combination of these. 
  
 2.3
“Board” means the Board of Directors of the Company. 
  
 2.4 “Cause” means, unless provided otherwise in the Agreement, the involuntary termination of a Participant by the Company for any of the following reasons: (a) as a result of an act or acts by the Participant which have been
found in an applicable court of law to constitute a felony (other than traffic-related offenses); (b) as a result of one or more acts by a Participant which in the good faith judgment of the Board are believed to be in violation of law or of
policies of the Company and which result in demonstrably material injury to the Company; (c) as result of an act or acts of proven dishonesty by the Participant resulting or intended to result directly or indirectly in significant gain or personal
enrichment to the Participant at the expense of the Company or public stockholders of the Company; or (d) upon the willful and continued failure by the Participant to perform his duties with the Company (other than any such failure resulting from
incapacity due to mental or physical illness not constituting a Disability), after a demand in writing for substantial performance is delivered by the Board, which demand specifically identifies the manner in which the Board believes that the
Participant has not substantially performed his duties. For purposes of this Plan, no act or failure to act by the Participant shall be deemed to be “willful” unless done or omitted to be done by the Participant not in good faith and
without reasonable belief that the Participant’s action or omission was in the best interests of the Company. “Cause” shall be determined by the Committee. Notwithstanding the foregoing, if the Participant has entered into an
employment agreement with the Employer that is binding as of the date of employment termination, and if such employment agreement defines “Cause,” then the definition of “Cause” in such agreement, in lieu of the definition
provided above, shall apply to the Participant for purposes of the Plan. 
  

 1 

 2.5 “Change in Control” means any of the following events: 
  
 (a) The acquisition by any “person,” as the term
person is used for purposes of Sections 13(d) or 14(d) of the Exchange Act, not a stockholder of the Company on the Effective Date, of legal or beneficial ownership of 35% or more of either (i) the then outstanding shares of common stock of the
Company or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors; 
  
 (b) Individuals who, on the Effective Date, constitute the Board cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising
the Board shall be considered as though such individual were a member of the Board as of the date hereof; 
  
 (c) Approval by the stockholders of the Company of a reorganization, merger, or consolidation, in each case unless the stockholders of the
Company immediately before such reorganization, merger, or consolidation own, directly or indirectly, immediately following such reorganization, merger, or consolidation at least a majority of the combined voting power of the outstanding voting
securities of the corporation resulting from such reorganization, merger, or consolidation in substantially the same proportion as their ownership of the voting securities immediately before such reorganization, merger or consolidation; or

  
 (d) Approval by the stockholders of the
Company of (i) a complete liquidation or dissolution of the Company, or (ii) the sale or other disposition of more than 50% of the assets of the Company within a twelve month period. 
  
 2.6 “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. All citations to
sections of the Code are to such sections as they may from time to time be amended or renumbered. 
  
 2.7 “Committee” means the Compensation Committee of the Board or such other committee consisting of two or more members of the Board as may be
appointed by the Board to administer this Plan pursuant to Article 3 of the Plan. If any member of the Committee does not qualify as (i) a “Non-Employee Director” within the meaning of Rule 16b-3 under the Act, and (ii) an “outside
director” within the meaning of Code Section 162(m), a subcommittee of the Committee shall be appointed to grant Awards to Named Executive Officers and to officers who are subject to Section 16 of the Act, and each member of such subcommittee
shall satisfy the requirements of (i) and (ii) above. References to the Committee in the Plan shall include and, as appropriate, apply to any such subcommittee. 
  

2.8 “Company” means MPS Group, Inc., a Florida corporation, and its successors and assigns. 
  
 2.9 “Director” means any individual who is a member of the Board of
Directors of the Company; provided, however, that any Director who is employed by the Company or any Employer shall not be considered a Director, but instead shall be considered an employee for purposes of the Plan. 
  
 2.10 “Disability” means, (i) with respect to a Participant who is
eligible to participate in the Employer’s program of long-term disability insurance, if any, a condition with respect to which the Participant is entitled to commence benefits under such program, and (ii) with respect to any Participant
(including a Participant who is eligible to participate in the Employer’s program of long-term disability insurance, if any), the inability of the Participant to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment expected to result in death or to be of continuous duration of six (6) months or more. For a Director, Disability shall mean the inability of the Director to perform his or her usual duties as a Board member by reason
of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of six (6) months or more. The determination of Disability shall be made by the Committee.  
  
 2.11 “Effective Date” shall have the meaning ascribed to such term
in Section 1.3 hereof. 
  

 2 

 2.12 “Eligible Participant” means an employee of the Employer (including an officer) as well as
any other person, including a Director and a consultant or advisor who provides bona fide services to the Employer, as shall be determined by the Committee. 
  
 2.13 “Employer” means the Company and any entity during any period that it is a “parent corporation” or a “subsidiary
corporation” with respect to the Company within the meaning of Code Sections 424(e) and 424(f). With respect to all purposes of the Plan, including, but not limited to, the establishment, amendment, termination, operation and administration of
the Plan, the Company shall be authorized to act on behalf of all other entities included within the definition of “Employer.” 
  
 2.14 “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended. All citations to sections of the
Exchange Act or rules thereunder are to such sections or rules as they may from time to time be amended or renumbered. 
  
 2.15 “Fair Market Value” means the fair market value of a Share, as determined in good faith by the Committee as follows: 
  
 (a) if the Shares are admitted to trading on a national
securities exchange, Fair Market Value on any date shall be the last sale price reported for the Shares on such exchange on such date or, if no sale was reported on such date, on the last date preceding such date on which a sale was reported;

  
 (b) if the Shares are admitted to quotation
on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) or other comparable quotation system and have been designated as a National Market System (“NMS”) security, Fair Market Value on any date
shall be the last sale price reported for the Shares on such system on such date or on the last day preceding such date on which a sale was reported; 
  
 (c) If the Shares are admitted to Quotation on the NASDAQ and have not been designated a NMS Security, Fair Market Value on any date shall
be the average of the highest bid and lowest asked prices of the Shares on such system on such date; or 
  
 (d) if (a), (b) and (c) do not apply, on the basis of the good faith determination of the Committee. 
  
 For purposes of subsection (a) above, if Shares are traded on more than one securities
exchange then the following exchange shall be referenced to determine Fair Market Value: (i) the New York Stock Exchange (“NYSE”), or (ii) if shares are not traded on the NYSE, the NASDAQ, or (iii) if shares are not traded on the NYSE or
NASDAQ, the largest regional exchange on which Shares are traded. 
  
 2.16 “Incentive Stock Option” or “ISO” means an Option granted to an Eligible Participant under Article 5 of the Plan which is intended to meet the requirements of Section 422 of the Code. 
  
 2.17 “Insider” shall mean an individual who is, on the relevant
date, subject to the reporting requirements of Section 16(a) of the Act. 
  
 2.18 “Named Executive Officer” means a Participant who is one of the group of “covered employees” as defined in the regulations promulgated or other guidance issued under Code Section 162(m), as
determined by the Committee. 
  
 2.19 “Nonqualified Stock
Option” or “NQSO” means an Option granted to an Eligible Participant under Article 5 of the Plan which is not intended to meet the requirements of Section 422 of the Code. 
  
 2.20 “Option” means an Incentive Stock Option or a Nonqualified Stock Option. An Option shall be designated as
either an Incentive Stock Option or a Nonqualified Stock Option, and in the absence of such designation, shall be treated as a Nonqualified Stock Option. 
  

 3 

 2.21 “Option Price” means the price at which a Share may be purchased by a Participant pursuant
to an Option. 
  
 2.22 “Participant” means an Eligible
Participant to whom an Award has been granted. 
  
 2.23
“Performance Measures” means the performance measures set forth in Article 9 which are used for performance based Awards to Named Executive Officers. 
  

2.24 “Performance Share” means an Award under Article 8 of the Plan that is valued by reference to a Share, which value may be paid to the
Participant by delivery of such property as the Committee shall determine, including without limitation, cash or Shares, or any combination thereof, upon achievement of such performance objectives during the relevant performance period as the
Committee shall establish at the time of such Award or thereafter, but not later than the time permitted by Code section 162(m) in the case of a Named Executive Officer, unless the Committee determines not to comply with Code section 162(m).

  
 2.25 “Permitted Transferee” means any members of the
immediate family of the Participant (i.e., spouse, children and grandchildren), any trusts for the benefit of such family members or any partnerships whose only partners are such family members. Appropriate evidence of any transfer to the
Permitted Transferees shall be delivered to the Company at its principal executive office. If all or part of an Option is transferred to a Permitted Transferee, the Permitted Transferee’s rights thereunder shall be subject to the same
restrictions and limitations with respect to the Option as the Participant. 
  
 2.26 “Plan” means the MPS Group, Inc. 2004 Equity Incentive Plan, as set forth herein and as it may be amended from time to time. 
  
 2.27 “Restricted Stock” means an Award of Shares under Article 7 of the Plan, which Shares are issued with such
restriction(s) as the Committee, in its sole discretion, may impose, including without limitation, any restriction on the right to retain such Shares, to sell, transfer, pledge or assign such Shares, to vote such Shares, and/or to receive any
dividends or distributions with respect to such Shares, which restrictions may lapse separately or in combination at such time or times, in installments or otherwise, as the Committee may deem appropriate. 
  
 2.28 “Restricted Stock Units” or “RSUs” means a right
granted under Article 7 of the Plan to receive a number of Shares or a cash payment for each such Share equal to the Fair Market Value of a Share on a specified date. 
  
 2.29 “Restriction Period” means the period commencing on the date an Award of Restricted Stock or Restricted Stock
Units is granted and ending on such date as the Committee shall determine. 
  
 2.30 “Retirement” means termination of employment other than for Cause after a Participant has (i) attained age 65; or (ii) reached the age of 55 years and has completed at least 10 years of service.

  
 2.31 “Share” means one share of common stock, par
value $.01 per share, of the Company, and as such Share may be adjusted pursuant to the provisions of Section 4.3 of the Plan. 
  
 2.32 “Stock Appreciation Right” or “SAR” means an Award granted under Article 6 of the Plan which provides for an amount payable in
Shares and/or cash, as determined by the Committee, equal to the excess of the Fair Market Value of a Share on the day the Stock Appreciation Right is exercised over the specified purchase price. 
  
 
ARTICLE 3 - ADMINISTRATION 
  
 3.1 
General. This Plan shall be administered by the Committee. The Committee, in its discretion, may delegate to one or more of its members, or to officers of the Company, such of its powers as it deems appropriate.

  

 4 

 3.2 
Authority of the Committee. 
  
 (a) The Committee shall have the exclusive right to interpret, construe and administer the Plan, to select the Eligible Participants who are eligible to receive an Award, and to act in all matters pertaining to the
granting of an Award and the contents of the Agreement evidencing the Award, including, without limitation, the determination of the number of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, or Performance Shares
subject to an Award and the form, terms, conditions and duration of each Award, and any amendment thereof consistent with the provisions of the Plan. The Committee may adopt such rules, regulations and procedures of general application for the
administration of this Plan, as it deems appropriate. 
  
 (b) The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Agreement in the manner and to the extent it shall deem desirable to carry it into effect. 
  
 (c) In the event the Company shall assume outstanding
employee benefit awards or the right or obligation to make future such awards in connection with the acquisition of another corporation or business entity, the Committee may, in its discretion, make such adjustments in the terms of Awards under the
Plan as it shall deem appropriate. 
  
 (d) All
acts, determinations and decisions of the Committee made or taken pursuant to grants of authority under the Plan or with respect to any questions arising in connection with the administration and interpretation of the Plan, including the
severability of any and all of the provisions thereof, shall be conclusive, final and binding upon all parties, including the Company, its stockholders, Participants, Eligible Participants and their estates, beneficiaries and successors. 

 
 3.3 
Delegation of Authority. Except with respect to Named Executive Officers and Insiders, the Committee may, at any time and from time to time, delegate to one or more persons any or all of its authority under Section
3.2, to the full extent permitted by law. 
  
 3.4 
Award Agreements. Each Award granted under the Plan shall be evidenced by a written Agreement. Each Agreement shall be subject to and incorporate, by reference or otherwise, the applicable terms and conditions of
the Plan, and any other terms and conditions, not inconsistent with the Plan, as may be imposed by the Committee, including without limitation, provisions related to the consequences of termination of employment. A copy of such document shall be
provided to the Participant, and the Committee may, but need not, require that the Participant sign a copy of the Agreement. 
  
 3.5 
Indemnification. In addition to such other rights of indemnification as they may have as directors, officers or as members of the Committee, directors and officers of the Company and the members of the Committee
shall be indemnified by the Company against reasonable expenses, including attorney’s fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which
they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Award granted hereunder, and against all amounts paid by them in settlement thereof, provided such settlement is approved
by independent legal counsel selected by the Company, or paid by them in satisfaction of a judgment or settlement in any such action, suit or proceeding, except as to matters as to which the director, officer or Committee member has been grossly
negligent or engaged in willful misconduct in the performance of his duties; provided, that within 60 days after institution of any such action, suit or proceeding, a director, officer or Committee member shall in writing offer the Company the
opportunity, at its own expense, to handle and defend the same. 
  
 
ARTICLE 4 - SHARES SUBJECT TO THE PLAN 
  
 4.1 
Number of Shares. (a) Subject to adjustment as provided in (b) below and in Section 4.3, the aggregate number of Shares which are available for issuance pursuant to Awards under the Plan is Five Million Seven

  

 5 

 
Hundred Thousand (5,700,000) Shares, plus the number of Shares subject to outstanding grants on the Effective Date under the Company’s Amended and
Restated 1995 Stock Option Plan (the “1995 Plan”), which are forfeited or expire on or after the Effective Date in accordance with the terms of such grants. The number of Incentive Stock Options that may be issued under the Plan is
5,700,000. Such Shares shall be made available from Shares currently authorized but unissued or Shares currently held (or subsequently acquired) by the Company as treasury shares, including Shares purchased in the open market or in private
transactions. Upon approval of this Plan by the stockholders of the Company, no further grants will be made under the Company’s Amended and Restated 1995 Stock Option Plan (the “1995 Plan”), but awards made under the 1995 Plan shall
remain outstanding in accordance with their terms. If Options, Restricted Stock or Restricted Stock Units are issued in respect of options, restricted stock, or restricted stock units of an entity acquired, by merger or otherwise, by the Company (or
any subsidiary of the Company or any Employer), to the extent such issuance shall not be inconsistent with the terms, limitations and conditions of Code section 422 or Exchange Act Rule 16b-3, the aggregate number of Shares for which Awards may be
made hereunder shall automatically be increased by the number of Shares subject to Awards so issued; provided, however, the aggregate number of shares for which Awards may be granted hereunder shall automatically be decreased by the number of Shares
covered by any unexercised portion of an Award so issued that has terminated for any reason, and the Shares subject to any such unexercised portion may not be the subject of an Award to any other person. 
  
 (b) The following rules shall apply for purposes of the
determination of the number of Shares available for grant under the Plan: 
  
 (i) If, for any reason, any Shares awarded or subject to purchase under the Plan are not delivered or purchased, or are reacquired by the Company, for reasons, including, but not limited to, a forfeiture of Restricted
Stock or termination, expiration or cancellation of an Option, a Stock Appreciation Right, Restricted Stock Units, or Performance Shares (“Returned Shares”), such shall not be charged against the aggregate number of Shares available for
issuance pursuant to Awards under the Plan and shall again be available for issuance pursuant to an Award under the Plan. If the exercise price and/or withholding obligation under an Award is satisfied by tendering Shares to the Company (either by
actual delivery or attestation), only the number of Shares issued net of the Shares so tendered shall be deemed delivered for purposes of determining the maximum number of Shares available for issuance under the Plan. 
  
 (ii) Each Performance Share awarded that may be settled in
Shares shall be counted as one Share subject to an Award. Performance Shares that may not be settled in Shares (or that may be settled in Shares but are not) shall not result in a charge against the aggregate number of Shares available for issuance
pursuant to Awards under this Plan. 
  
 (iii)
Each Stock Appreciation Right or Restricted Stock Unit that may be settled in Shares shall be counted as one Share subject to an Award. Stock Appreciation Rights or Restricted Stock Units that may not be settled in Shares (or that may be settled in
Shares but are not) shall not result in a charge against the aggregate number of Shares available for issuance pursuant to Awards under this Plan. In addition, if a Stock Appreciation Right is granted in connection with an Option and the exercise of
the Stock Appreciation Right results in the loss of the Option right, the Shares that otherwise would have been issued upon the exercise of such related Option shall not result in a charge against the aggregate number of Shares available for
issuance pursuant to Awards under this Plan. 
  
 4.2 
Individual Limits. Except to the extent the Committee determines that an Award to a Named Executive Officer shall not comply with the performance-based compensation provisions of Code Section 162(m), the following
rules shall apply to Awards under the Plan: 
  
 (a) Options and SARs. The maximum number of Options and Stock Appreciation Rights that, in the aggregate, may be granted pursuant to Awards in any one calendar year to any one Participant shall be Five Hundred Thousand (500,000).

  
 (b) Restricted Stock, Restricted Stock
Units and Performance Shares. The maximum number of Shares of Restricted Stock, number of Restricted Stock Units or Performance Shares that, in the aggregate, may be 

  

 6 

 
granted pursuant to Awards in any one calendar year to any one Participant shall be Five Hundred Thousand (500,000) Shares.  
  
 4.3 
Adjustment of Shares. If any change in corporate capitalization, such as a stock split, reverse stock split, stock dividend, or any corporate transaction such as a reorganization, reclassification, merger or
consolidation or separation, including a spin-off, of the Company or sale or other disposition by the Company of all or a portion of its assets, any other change in the Company’s corporate structure, or any distribution to stockholders (other
than a cash dividend) results in the outstanding Shares, or any securities exchanged therefor or received in their place, being exchanged for a different number or class of shares or other securities of the Company, or for shares of stock or other
securities of any other entity, or new, different or additional shares or other securities of the Company or of any other entity being received by the holders of outstanding Shares, then equitable adjustments shall be made by the Committee in:

  
 (a) the limitations on the aggregate number
of Shares that may be awarded as set forth in Section 4.1, including, without limitation, with respect to Incentive Stock Options; 
  
 (b) the limitations on the aggregate number of Shares that may be awarded to any one single Participant as set forth in Section 4.2;

  
 (c) the number and class of Shares that may
be subject to an Award, and which have not been issued or transferred under an outstanding Award; 
  
 (d) the Option Price under outstanding Options and the number of Shares to be transferred in settlement of outstanding Stock Appreciation
Rights; and 
  
 (e) the terms, conditions or
restrictions of any Award and Agreement, including the price payable for the acquisition of Shares; provided, however, that all such adjustments made in respect of each ISO shall be accomplished so that such Option shall continue to be an incentive
stock option within the meaning of Code Section 422. 
  
 
ARTICLE 5 - STOCK OPTIONS 
  
 5.1 
Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to Eligible Participants at any time and from time to time as shall be determined by the Committee. The Committee shall have
sole discretion in determining the number of Shares subject to Options granted to each Participant. The Committee may grant a Participant ISOs, NQSOs or a combination thereof, and may vary such Awards among Participants; provided that only an
employee may be granted ISOs. 
  
 5.2 
Agreement. Each Option grant shall be evidenced by an Agreement that shall specify the Option Price, the duration of the Option, the number of Shares to which the Option pertains and such other provisions as the
Committee shall determine. The Option Agreement shall further specify whether the Award is intended to be an ISO or an NQSO. Any portion of an Option that is not designated as an ISO or otherwise fails or is not qualified as an ISO (even if
designated as an ISO) shall be an NQSO. 
  
 5.3 
Option Price. The Option Price for each grant of an ISO or NQSO shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the date the Option is granted. 
  
 5.4 
Duration of Options. Each Option shall expire at such time as the Committee shall determine at the time of grant; provided, however, that no Option shall be exercisable later than the tenth (10th) anniversary of its grant date. 
  
 5.5 
Exercise of Options. Options granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, including conditions related
to the employment of or provision of services by the Participant with the Company or any Employer, which need 

  

 7 

 
not be the same for each grant or for each Participant. The Committee may provide in the Agreement for automatic accelerated vesting and other rights upon
the occurrence of a Change in Control of the Company or upon the occurrence of other events as specified in the Agreement. In addition, the Committee may provide in the Agreement for the right of a Participant to defer option gains related to an
exercise. 
  
 5.6 
Payment. Options shall be exercised by the delivery of a written notice of exercise to the Company, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment
for the Shares. The Option Price upon exercise of any Option shall be payable to the Company in full either: (a) in cash, (b) cash equivalent approved by the Committee, (c) if approved by the Committee, by tendering previously acquired Shares (or
delivering a certification or attestation of ownership of such Shares) having an aggregate Fair Market Value at the time of exercise equal to the total Option Price (provided that the tendered Shares must have been held by the Participant for any
period required by the Committee), or (d) by a combination of (a), (b) and (c). The Committee also may allow cashless exercises as permitted under the Federal Reserve Board’s Regulation T, subject to applicable securities law restrictions, or
by any other means which the Committee determines to be consistent with the Plan’s purpose and applicable law. 
  
 5.7 
Nontransferability of Options. 
  
 (a) Incentive Stock Options. No ISO granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.
Further, all ISOs granted to a Participant under the Plan shall be exercisable during his or her lifetime only by such Participant. 
  
 (b) Nonqualified Stock Options. Except as otherwise provided in a Participant’s Award Agreement with respect to transfers to
Permitted Transferees (any such transfers being subject to applicable laws, rules and regulations), no NQSO granted under this Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, except as otherwise provided in a Participant’s Award Agreement, all NQSOs granted to a Participant under this Article 5 shall be exercisable during his or her lifetime only by such Participant.

  
 5.8 
Purchased Options. The Committee shall also have the authority to grant Options to Participants in exchange for a stated purchase price for such Option (which may be payable by the Participant directly or, at the
election of the Participant, may be offset from bonus or other amounts owed to the Participant by the Company). 
  
 5.9 
Special Rules for ISOs. In no event shall any Participant who owns (within the meaning of Section 424(d) of the Code) stock of the Company possessing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company be eligible to receive an ISO at an Option Price less than one hundred ten percent (110%) of the Fair Market Value of a share on the date the ISO is granted or be eligible to receive an ISO that is exercisable
later than the fifth (5th) anniversary date of its grant. No Participant may be granted ISOs (under the Plan and all other incentive stock option plans of the Employer) which are first exercisable in any calendar year for Shares having an aggregate
Fair Market Value (determined as of the date an Option is granted) that exceeds One Hundred Thousand Dollars ($100,000). 
  
 
ARTICLE 6 - STOCK APPRECIATION RIGHTS 
  
 6.1 
Grant of SARs. A Stock Appreciation Right may be granted to an Eligible Participant in connection with an Option granted under Article 5 of this Plan or may be granted independently of any Option. A Stock
Appreciation Right shall entitle the holder, within the specified period (which may not exceed 10 years), to exercise the SAR and receive in exchange therefor a payment having an aggregate value equal to the amount by which the Fair Market Value of
a Share exceeds the exercise price, times the number of Shares with respect to which the SAR is exercised. The Committee may provide in the Agreement for automatic accelerated vesting and other rights upon the occurrence of a Change in Control or
upon the occurrence of other events specified in the 

  

 8 

 
Agreement. A SAR granted in connection with an Option (a “Tandem SAR”) shall entitle the holder of the related Option, within the period specified
for the exercise of the Option, to surrender the unexercised Option, or a portion thereof, and to receive in exchange therefore a payment having an aggregate value equal to the amount by which the Fair Market Value of a Share exceeds the Option
price per Share, times the number of Shares under the Option, or portion thereof, which is surrendered. SARs shall be subject to the same transferability restrictions as Nonqualified Stock Options. 
  
 6.2 
Tandem SARs. Each Tandem SAR shall be subject to the same terms and conditions as the related Option, including limitations on transferability, and shall be exercisable only to the extent such Option is exercisable
and shall terminate or lapse and cease to be exercisable when the related Option terminates or lapses. The grant of Stock Appreciation Rights related to ISOs must be concurrent with the grant of the ISOs. With respect to NQSOs, the grant either may
be concurrent with the grant of the NQSOs, or in connection with NQSOs previously granted under Article 5, which are unexercised and have not terminated or lapsed. 
  
 6.3 
Payment. The Committee shall have sole discretion to determine in each Agreement whether the payment with respect to the exercise of an SAR will be in the form of all cash, all Shares or any combination thereof. If
payment is to be made in Shares, the number of Shares shall be determined based on the Fair Market Value of a Share on the date of exercise. If the Committee elects to make full payment in Shares, no fractional Shares shall be issued and cash
payments shall be made in lieu of fractional shares. The Committee shall have sole discretion as to the timing of any payment made in cash or Shares, or a combination thereof, upon exercise of SARs. Payment may be made in a lump sum, in annual
installments or may be otherwise deferred (at the election of the Participant) and the Committee shall have sole discretion to determine whether any deferred payments may bear amounts equivalent to interest or cash dividends. 
  
 6.4 
Exercise of SARs. Upon exercise of a Tandem SAR, the number of Shares subject to exercise under any related Option shall automatically be reduced by the number of Shares represented by the Option or portion thereof
which is surrendered. 
  
 
ARTICLE 7 - RESTRICTED STOCK AND RESTRICTED STOCK UNITS 
  
 7.1 
Grant of Restricted Stock. Restricted Stock Awards may be made to Eligible Participants as a reward for past service or as an incentive for the performance of future services that will contribute materially to the
successful operation of the Employer. Awards of Restricted Stock may be made either alone or in addition to or in tandem with other Awards granted under the Plan and may be current grants of Restricted Stock or deferred grants of Restricted Stock.

  
 7.2 
Restricted Stock Agreement. The Restricted Stock Agreement shall set forth the terms of the Award, as determined by the Committee, including, without limitation: the purchase price, if any, to be paid for such
Restricted Stock, which may be more than, equal to, or less than Fair Market Value and may be zero, subject to such minimum consideration as may be required by applicable law; any restrictions applicable to the Restricted Stock such as continued
service or achievement of Performance Measures, the length of the Restriction Period and whether any circumstances, such as death, Disability, or a Change in Control, will shorten or terminate the Restriction Period; and rights of the Participant to
vote or receive dividends or distributions with respect to the Shares during the Restriction Period. Subject to shortening the length of the Restriction Period upon the occurrence of certain circumstances, such as death, Disability, or a Change in
Control, all grants of Restricted Stock not subject to Performance Measures shall have a Restriction Period of at least three (3) years but graded vesting may be provided. Restricted Stock Awards subject to Performance Measures shall have a
Restriction Period of at least one (1) year. Restricted Stock Awards issued in lieu of all or part of a cash bonus payment otherwise payable to the Participant shall be subject to a Restriction Period of not more than one (1) year. 
  
 Notwithstanding Section 3.4 of the Plan, a Restricted Stock Award must be
accepted within a period of sixty (60) days, or such other period as the Committee may specify, by executing a Restricted Stock Agreement and 

  

 9 

 
paying whatever price, if any, is required. The prospective recipient of a Restricted Stock Award shall not have any rights with respect to such Award,
unless and until such recipient has executed a Restricted Stock Agreement and has delivered a fully executed copy thereof to the Committee, and has otherwise complied with the applicable terms and conditions of such Award. 
  
 7.3 
Nontransferability. Except as otherwise provided in this Article 7, no shares of Restricted Stock nor any Restricted Stock Units received by a Participant shall be sold, exchanged, transferred, pledged, hypothecated
or otherwise disposed of during the Restriction Period. 
  
 7.4

Certificates. Upon an Award of Restricted Stock to a Participant, Shares of Restricted Stock shall be registered in the Participant’s name (or an appropriate book entry shall be made). Certificates, if issued,
may either be held in custody by the Company until the Restriction Period expires or until restrictions thereon otherwise lapse and/or be issued to the Participant and registered in the name of the Participant, bearing an appropriate restrictive
legend and remaining subject to appropriate stop-transfer orders. If required by the Committee, the Participant shall deliver to the Company one or more stock powers endorsed in blank relating to the Restricted Stock. If and when the Restriction
Period expires without a prior forfeiture of the Restricted Stock subject to such Restriction Period, unrestricted certificates for such shares shall be delivered to the Participant; provided, however, that the Committee may cause such legend or
legends to be placed on any such certificates as it may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission and any applicable federal or state law. 
  
 7.5 
Dividends and Other Distributions. Except as provided in this Article 7 or in the Award Agreement, a Participant receiving a Restricted Stock Award shall have, with respect to such Restricted Stock Award, all of the
rights of a stockholder of the Company, including the right to vote the Shares to the extent, if any, such Shares possess voting rights and the right to receive any dividends and distributions; provided, however, the Committee may require that any
dividends on such Shares of Restricted Stock shall be automatically deferred and reinvested in additional Restricted Stock subject to the same restrictions as the underlying Award, or may require that dividends and other distributions on Restricted
Stock shall be paid to the Company for the account of the Participant. The Committee shall determine whether interest shall be paid on such amounts, the rate of any such interest, and the other terms applicable to such amounts. In addition, with
respect to Named Executive Officers, the Committee may apply any restrictions it deems appropriate to the payment of dividends declared with respect to Restricted Stock such that the dividends and/or Restricted Stock maintain eligibility for the
performance-based compensation exception under Code Section 162(m). 
  
 7.6 
Restricted Stock Units (or RSUs). Awards of Restricted Stock Units may be made to Eligible Participants in accordance with the following terms and conditions: 
  
 (a) The Committee, in its discretion, shall determine the
number of RSUs to grant to a Participant, the Restriction Period and other terms and conditions of the Award, including whether the Award will be paid in cash, Shares or a combination of the two and the time when the Award will be payable
(i.e., at vesting, termination of employment or another date). 
  
 (b) Unless the Agreement provides otherwise, RSUs shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated. 
  
 (c) Awards of RSUs shall be subject to the same terms as
applicable to Awards of Restricted Stock under Section 7.2 of the Plan; provided, however, a Participant to whom RSUs are awarded has no rights as a stockholder with respect to the Shares represented by the RSUs unless and until the Shares are
actually delivered to the Participant; provided further, however, RSUs may have dividend equivalent rights if provided for by the Committee which may be subject to the same terms and conditions governing dividends and distributions applicable to
Restricted Stock Awards under Section 7.5 of this Plan with the exception that in no event shall RSUs possess voting rights. 
  
 (d) The Agreement shall set forth the terms and conditions that shall apply upon the termination of the Participant’s employment with
the Employer (including a forfeiture of RSUs for which the restrictions have 

  

 10 

 
not lapsed upon Participant’s ceasing to be employed) as the Committee may, in its discretion, determine at the time the Award is granted. 

 
 
ARTICLE 8 - PERFORMANCE SHARES 
  
 8.1 
Grant of Performance Shares. Performance Shares may be granted to Participants in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee. 
  
 8.2 
Value of Performance Shares. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant. The Committee shall set the Performance Measures in its discretion
which, depending on the extent to which they are met, will determine the number of Performance Shares that will be paid out to the Participant. For purposes of this Article 8, the time period during which the Performance Measures must be met shall
be called a “Performance Period.” 
  
 8.3 
Earning of Performance Shares. Subject to the terms of this Plan, after the applicable Performance Period has ended, the holder of Performance Shares shall be entitled to receive a payout of the number of
Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding Performance Measures have been achieved. The Committee may provide in the Agreement for automatic
accelerated vesting and other rights upon a Change in Control or upon the occurrence of other events specified in the Agreement. 
  
 8.4 
Form and Timing of Payment of Performance Shares. Subject to the terms of this Plan, the Committee, in its sole discretion, may pay earned Performance Shares in the form of cash or in Shares (or in a combination
thereof) with an aggregate Fair Market Value equal to the value of the earned Performance Shares at the close of the applicable Performance Period. Such Shares may be granted subject to any restrictions deemed appropriate by the Committee. The
determination of the Committee with respect to the form and timing of payout of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award. 
  
 Except as otherwise provided in the Participant’s Award Agreement, a Participant shall be entitled to receive any
dividends and distributions declared with respect to Shares that have been earned in connection with grants of Performance Shares but that have not yet been distributed to the Participant (such dividends and distributions shall be subject to the
same accrual, forfeiture, and payout restrictions as apply to dividends and distributions earned with respect to Restricted Stock, as set forth in Section 7.5 herein). In addition, unless otherwise provided in the Participant’s Award Agreement,
a Participant shall be entitled to exercise full voting rights with respect to Shares that have been earned in connection with grants of Performance Shares but that have not yet been distributed to the Participant. 
  
 8.5 
Nontransferability. Except as otherwise provided in a Participant’s Award Agreement, Performance Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by
will or by the laws of descent and distribution. Further, except as otherwise provided in a Participant’s Award Agreement, a Participant’s rights under the Plan shall be exercisable during the Participant’s lifetime only by the
Participant or the Participant’s legal representative. 
  
 
ARTICLE 9 - PERFORMANCE MEASURES 
  
 Until the Committee proposes for stockholder vote and stockholders approve a change in the general Performance Measures set forth in this Article 9, the attainment of which may determine the degree of payout and/or vesting with respect to
Named Executive Officers’ Awards that are intended to qualify under the performance-based compensation provisions of Code Section 162(m), the Performance Measure(s) to be used for purposes of such Awards shall be chosen from among the following
(which may relate to the Company or a business unit, division or subsidiary): earnings, earnings per share, consolidated pre-tax earnings, net earnings, 

  

 11 

 
operating income, EBIT (earnings before interest and taxes), EBITDA (earnings before interest, taxes, depreciation and amortization), gross margin, revenues,
revenue growth, market value added, economic value added, return on equity, return on investment, return on assets, return on net assets, return on capital employed, return on incremental equity, total stockholder return, profit, economic profit,
capitalized economic profit, after-tax profit, pre-tax profit, cash flow measures, cash flow return, sales, sales volume, revenues per employee, stock price, cost goals, budget goals, growth and expansion goals or goals related to acquisitions or
divestitures. The Committee can establish other Performance Measures for performance Awards granted to Eligible Participants that are not Named Executive Officers. 
  
 The Committee shall be authorized to make adjustments in performance based criteria or in the terms and conditions of other
Awards in recognition of unusual or nonrecurring events affecting the Company or its financial statements or changes in applicable laws, regulations or accounting principles. The Committee shall also have the discretion to adjust the determinations
of the degree of attainment of the pre-established Performance Measures; provided, however, that Awards which are designed to qualify for the performance-based compensation exception from the deductibility limitations of Code Section 162(m), and
which are held by Named Executive Officers, may not be adjusted upward (except as may be permitted by Code Section 162(m)), but the Committee shall retain the discretion to adjust such Awards downward. 
  
 If applicable tax and/or securities laws change to permit Committee
discretion to alter the governing Performance Measures without obtaining stockholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining stockholder approval. In addition, in the event that the
Committee determines that it is advisable to grant Awards which shall not qualify for the performance-based compensation exception from the deductibility limitations of Code Section 162(m), the Committee may make such grants without satisfying the
requirements of Code Section 162(m). 
  
 
ARTICLE 10 - BENEFICIARY DESIGNATION 
  
 Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case of his or her death before he or she
receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee, and will be effective only when filed by the Participant in writing with the
Committee during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
  
 
ARTICLE 11 - DEFERRALS 
  
 The
Committee may permit or require a Participant to defer under this Plan or to a separate deferred compensation arrangement of the Company such Participant’s receipt of the payment of cash or the delivery of Shares that would otherwise be due to
such Participant by virtue of the exercise of an Option or SAR, the lapse or waiver of restrictions with respect to Restricted Stock or Restricted Stock Units, or the satisfaction of any requirements or goals with respect to Performance Shares. If
any such deferral election is required or permitted, the Committee shall, in its sole discretion, establish rules and procedures for such payment deferrals. 
  
 
ARTICLE 12 - WITHHOLDING 
  
 12.1 
Tax Withholding. The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan. 
  

 12 

 12.2 
Share Withholding. With respect to withholding required upon the exercise of Options or SARs, upon the lapse of restrictions on Restricted Stock, or upon any other taxable event arising as a result of Awards granted
hereunder, unless other arrangements are made with the consent of the Committee, Participants shall satisfy the withholding requirement by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to
not more than the minimum amount of tax required to be withheld with respect to the transaction. All such elections shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 
  
 
ARTICLE 13 - FOREIGN EMPLOYEES 
  
 In order to facilitate the making of any grant of Awards under this Plan, the Committee may provide for such special terms for Awards to Participants who are foreign nationals or who are employed by the Company or any Employer outside of
the United States of America as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom, which special terms may be contained in an Appendix attached hereto. Moreover, the Committee may
approve such supplements to or amendments, restatements or alternative versions of this Plan as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of this Plan as in effect for any other purpose, and the
Secretary or other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as this Plan. No such special terms, supplements, amendments or restatements, however, shall include any
provisions that are inconsistent with the terms of this Plan as then in effect unless this Plan could have been amended to eliminate such inconsistency without further approval by the stockholders of the Company. 
  
 
ARTICLE 14 - AMENDMENT AND TERMINATION 
  
 14.1 
Amendment of Plan. The Committee may at any time terminate or from time to time amend the Plan in its discretion in whole or in part, but no such action shall adversely affect any rights or obligations with respect
to any Awards previously granted under the Plan, unless the affected Participants consent in writing. To the extent required by Code Section 162(m) or 422 and/or the rules of NASDAQ or any exchange upon which the Company lists the Shares for trading
or other applicable law, rule or regulation no amendment shall be effective unless approved by the stockholders of the Company at an annual or special meeting. 
  

14.2 
Amendment of Award Agreement; Repricing. The Committee may, at any time, in its discretion amend outstanding Agreements in a manner not inconsistent with the terms of the Plan; provided, however, except as provided
in Section 14.4, if such amendment is adverse to the Participant, as determined by the Committee, the amendment shall not be effective unless and until the Participant consents, in writing, to such amendment. To the extent not inconsistent with the
terms of the Plan, the Committee may, at any time in its discretion amend an outstanding Agreement in a manner that is not unfavorable to the Participant without the consent of such Participant. Notwithstanding the above provision, the Committee
shall not have the authority to decrease the Option Price of any outstanding Option, except in accordance with Section 4.3 or unless such an amendment is approved by the stockholders of the Company. 
  
 14.3 
Termination of Plan. No Awards shall be granted under the Plan after the tenth (10th) anniversary of the date the Board adopts the Plan. 
  
 14.4 
Detrimental Activity. The Committee may provide in the Award Agreement that if a Participant engages in any “Detrimental Activity” (as defined below), the Committee may, notwithstanding any other
provision in this Plan to the contrary, cancel, rescind, suspend, withhold or otherwise restrict or limit any unexpired, unexercised or unpaid Award as of the first date the Participant engages in the Detrimental Activity, unless sooner terminated
by operation of another term of this Plan or any other agreement. Without limiting the 

  

 13 

 
generality of the foregoing, the Agreement may also provide that if the Participant exercises an Option or SAR, receives a Performance Share or Restricted
Stock Unit payout, or receives Shares under an Award at any time during the period beginning six months prior to the date the Participant first engages in Detrimental Activity and ending six months after the date the Participant ceases to engage in
any Detrimental Activity, the Participant shall be required to pay to the Company the excess of the then Fair Market Value of the Shares subject to the Award over the total price paid by the Participant for such Shares. 
  
 For purposes of this Section, “Detrimental Activity” means any of
the following activities as further defined by the Committee in the Award Agreement and as determined by the Committee in good faith: (i) the violation of any agreement between the Company and the Participant relating to the disclosure of
confidential information or trade secrets, the solicitation of employees, customers, suppliers, licensees, licensors or contractors, or the performance of competitive services or (ii) conduct that constitutes Cause (as defined in Section 2.4 above),
whether or not the Participant’s employment is terminated for Cause. 
  
 14.5 
Assumption or Cancellation of Awards. In the event of a proposed sale of all or substantially all of the assets or stock of the Company, the merger of the Company with or into another corporation such that
stockholders of the Company immediately prior to the merger exchange their shares of stock in the Company for cash and/or shares of another entity or any other corporate transaction to which the Committee deems this provision applicable, each Award
shall be assumed or an equivalent Award shall be substituted by the successor corporation or a parent or subsidiary of such successor corporation (and adjusted as appropriate), unless such successor corporation does not agree to assume the Award or
to substitute an equivalent award, in which case the Committee may, in its sole discretion and in lieu of such assumption or substitution, provide for the Participant to have the right to exercise the Option or other Award as to all Shares,
including Shares as to which the Option or other Award would not otherwise be exercisable (or with respect to RSUs, Performance Shares or Restricted Stock, provide that all restrictions shall lapse or with respect to Performance Shares, provide that
the Performance Measures are satisfied) or provide for cancellation and for a cash payment for such Award. If the Committee makes an Option or other Award fully exercisable in lieu of assumption or substitution in the event of a merger or sale of
assets or stock or other corporate transaction, the Committee shall notify the Participant that, subject to rescission if the merger, sale of assets or stock or other corporate transaction is not successfully completed within a certain period, the
Option or other Award shall be fully exercisable for a period of fifteen (15) days from the date of such notice (or such other period as provided by the Committee), and, to the extent not exercised, the Option or other Award will terminate upon the
expiration of such period. 
  
 
ARTICLE 15 - MISCELLANEOUS PROVISIONS 
  
 15.1 
Restrictions on Shares. All certificates for Shares delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and
other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed and any applicable federal or state laws, and the Committee may cause a legend or legends to be placed on any such certificates to
make appropriate reference to such restrictions. In making such determination, the Committee may rely upon an opinion of counsel for the Company or Committee. 
  

Notwithstanding any other provision of the Plan, the Company shall have no liability to deliver any Shares under the Plan or make any other
distribution of the benefits under the Plan unless such delivery or distribution would comply with all applicable laws (including, without limitation, the requirements of the Securities Act of 1933), and the applicable requirements of any securities
exchange or similar entity. 
  
 15.2 No Implied Rights.
Nothing in the Plan or any Award granted under the Plan shall confer upon any Participant any right to continue in the service of the Employer, or to serve as a Director thereof, or interfere in any way with the right of the Employer to terminate
the Participant’s employment or other service relationship for any reason at any time. Unless agreed by the Board, no Award granted under the Plan shall be deemed salary 

  

 14 

 
or compensation for the purpose of computing benefits under any employee benefit plan, severance program, or other arrangement of the Employer for the
benefit of its employees. No Participant shall have any claim to an Award until it is actually granted under the Plan. To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall, except as
otherwise provided by the Committee, be no greater than the right of an unsecured general creditor of the Company. 
  
 15.3 
Compliance with Laws. 
  
 (a) At all times when the Committee determines that compliance with Code Section 162(m) is required or desirable, all Awards granted under this Plan to Named Executive Officers shall comply with the requirements of
Code Section 162(m). In addition, in the event that changes are made to Code Section 162(m) to permit greater flexibility with respect to any Awards under the Plan, the Committee may, subject to the requirements of Article 14, make any adjustments
it deems appropriate. 
  
 (b) The Plan and the
grant of Awards shall be subject to all applicable federal and state laws, rules, and regulations and to such approvals by any United States government or regulatory agency as may be required. Any provision herein relating to compliance with Rule
16b-3 under the Exchange Act shall not be applicable with respect to participation in the Plan by Participants who are not Insiders. 
  
 15.4 
Successors. The terms of the Plan shall be binding upon the Company, and its successors and assigns (whether by purchase, merger, consolidation or otherwise). 
  
 15.5 
Tax Elections. Each Participant agrees to give the Committee prompt written notice of any election made by such Participant under Code Section 83(b) or any similar provision thereof. 
  
 15.6 
Legal Construction. 
  
 (a) Severability. If any provision of this Plan or an Agreement is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any Agreement under any law deemed applicable by the
Committee, such provision shall be construed or deemed amended to conform to applicable laws or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Agreement,
it shall be stricken and the remainder of the Plan or the Agreement shall remain in full force and effect. 
  
 (b) Gender and Number. Where the context admits, words in any gender shall include the other gender, words in the singular shall
include the plural and words in the plural shall include the singular. 
  
 (c) Governing Law. To the extent not preempted by federal law, the Plan and all Agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Florida. 
  
  

 15

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