Document:

Unassociated Document

     

    DATED: 28
MARCH 2008

    Hong
Kong/-1/OPEN/-1/PYYL: L_LIVE_APAC1:505524v7

     

    Subscription
Agreement

     

    between

     

    Xdlong
International Company Limited

    as
Company

     

    Elevatech
Limited

    as
Investor

     

    and

     

    Mr Lin
Shuipan

    as
Founder Shareholder

     

    relating
to

     

    the
subscription for convertible redeemable preference 
shares in Xdlong
International Company Limited

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    CONTENTS

    

    
      
        
          
            
              
                
                  	
                          1.

                        	
                          Interpretation

                        	
                          1

                        
	 
      	 
      	 
      
	
                          2.

                        	
                          Issue
      and Subscription

                        	
                          5

                        
	 
      	 
      	 
      
	
                          3.

                        	
                          Consideration

                        	
                          5

                        
	 
      	 
      	 
      
	
                          4.

                        	
                          Conditions

                        	
                          5

                        
	 
      	 
      	 
      
	
                          5.

                        	
                          Provisions
      in relation to the Listing Process

                        	
                          6

                        
	 
      	 
      	 
      
	
                          6.

                        	
                          Completion

                        	
                          9

                        
	 
      	 
      	 
      
	
                          7.

                        	
                          Warranties

                        	
                          10

                        
	 
      	 
      	 
      
	
                          8.

                        	
                          Indemnification

                        	
                          12

                        
	 
      	 
      	 
      
	
                          9.

                        	
                          Undertakings
      by the Founder Shareholder and the Company

                        	
                          13

                        
	 
      	 
      	 
      
	
                          10.

                        	
                          Protection
      of the Company and Founder Shareholder

                        	
                          13

                        
	 
      	 
      	 
      
	
                          11.

                        	
                          Confidentiality

                        	
                          13

                        
	 
      	 
      	 
      
	
                          12.

                        	
                          Announcements

                        	
                          15

                        
	 
      	 
      	 
      
	
                          13.

                        	
                          Provisions
      relating to this Agreement

                        	
                          15

                        
	 
      	 
      	 
      
	
                          14.

                        	
                          Waiver

                        	
                          18

                        
	 
      	 
      	 
      
	15. 	Law
      and Jurisdiction 	
                          18

                        
	 	 	 
	
                          SCHEDULE
      1 : THE LETTER OF APPLICATION

                        	
                          
                            19

                          

                        
	 
      	 
      
	
                          SCHEDULE
      2 : ADJUSTMENT OF CONSIDERATION

                        	
                          
                            20

                          

                        
	 
      	 
      
	
                          SCHEDULE
      3 : PRINCIPAL TERMS Of THE PREFERENCE SHARES

                        	
                          
                            24

                          

                        
	 
      	 
      
	
                          SCHEDULE
      4 : PROTECTION OF THE COMPANY AND FOUNDER SHAREHOLDER

                        	
                          
                            26

                          

                        
	 
      	 
      
	
                          SCHEDULE
      5 : WARRANTIES

                        	
                          
                            29

                          

                        

                

              

            

          

        

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

     

    THIS
AGREEMENT is
dated 28 March 2008 and made

     

    BETWEEN:

     

    
      	
              (1)

            	
              XDLONG
      INTERNATIONAL COMPANY LIMITED, (the “Company”),
      registered in the Cayman Islands having company number CT-207339 and
      having its registered office at Cricket Square, Hutchins Drive, P.O. Box
      2681, Grand Cayman KY1-1111, Cayman
Islands;

            

    

    
      	
              (2)

            	
              ELEVATECH
      LIMITED,
      (“Investor”), a
      company incorporated in Hong Kong and having its registered office at
      68th
      Floor, Cheung Kong Center, 2 Queen’s Road Central, Hong Kong;
      and

            

    

    
      	
              (3)

            	
              MR
      LIN SHUIPAN (the “Founder
      Shareholder”), holder of PRC passport number G14386872 of No. 103,
      Qiancanggong Road, Huatingkou Village, Chendai Town, Jinjiang City, Fujian
      Province, PRC.

            

    

     

    BACKGROUND:

     

    
      	
              (1)

            	
              The
      Investor wishes to subscribe for the Subscription Shares from the
      Company.

            

    

     

    
      	
              (2)

            	
              The
      Founder Shareholder, as controlling shareholder of the Company, has agreed
      to give certain undertakings and to give Warranties to the Investor in
      connection with the Subscription.

            

    

     

    
      	
              (3)

            	
              Concurrently
      with the signing of this Agreement, the Investor, the Founder Shareholder,
      the Company, Richwise and Dr Shi Jinlei will enter into the Share Purchase
      Agreement in relation to the sale of 5.5% of the issued share capital of
      the Company, as enlarged as a result of the
  Subscription.

            

    

     

    THE PARTIES AGREE AS
FOLLOWS:

     

    
      	
              1.

            	
              Interpretation

            

    

     

    
      	
              1.1

            	
              Definitions

            

    

     

    In this
Agreement (including the Recitals) except where the context admits
otherwise:

     

    “Adjustment Event”
means the adjustments events set out in paragraphs 2.1, 3.1, 4.1 and 11 of
schedule 2 of this Agreement.

     

    “Affiliate” means, in
relation to a body corporate, any subsidiary undertaking or parent undertaking
of such body corporate, and any subsidiary undertaking of any such parent
undertaking for the time being.

     

    “Audited Accounts”
means the audited consolidated balance sheet, audited cash flow statement and
the audited consolidated profit and loss account of the Company and the
Subsidiaries in respect of each of the three financial years ended on 31
December 2005, 31 December 2006 and 31 December 2007 reported on by Ernst &
Young and prepared in accordance with the principles of merger accounting and
HKFRS, including, in each case, the notes thereto.

     

    “Authority” means any
competent governmental, administrative, supervisory, regulatory, judicial,
determinative, disciplinary, enforcement or tax raising body, authority, agency,
board, department court or tribunal of any jurisdiction and whether
supranational, national, regional or local.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Business Day” means a
day (other than a Saturday or Sunday) on which banks are open for ordinary
banking business in Hong Kong, the United States, the PRC, the Cayman
Islands.

     

    “BVI” means the
British Virgin Islands.

     

    “Completion” means
completion of the subscription of the Subscription Shares in accordance with
clause 6.

     

    “Completion Articles”
means the new articles of association of the Company to be adopted by the
Company in accordance with the Conditions, reflecting the relevant terms as set
out under this Agreement, the Share Purchase Agreement and the Shareholders’
Agreement in a form to be agreed between the Parties prior to
Completion.

     

    “Conditions” means the
conditions set out in clause 4.1.

     

    “Consent” means any
approval, consent, ratification, waiver or other authorisation;

     

    “Consideration” means
the consideration to be paid for the Subscription Shares in accordance with
clause 3.1.

     

    “Directors” means the
Directors of the Company or any of the Subsidiaries.

     

    “Disclosure Letter”
means the letter dated the date of this Agreement written and delivered by or on
behalf of the Company and the Founder Shareholder to the Investor.

     

    “Encumbrance” means
any, actual or contingent, (i) mortgage, charge (floating and fixed), pledge,
lien, assignment, hypothecation, deed of trust, security interest (including any
created by law), or other security agreement or arrangement that securing or
conferring any priority of payment in respect of any obligation of any person,
(ii) any lease, sub-lease, occupancy agreement, easement or covenant granting a
right of use or occupancy to any person and (iii) any proxy, power of attorney,
voting trust agreement, interest, option, right of first offer, negotiation or
refusal or transfer restriction in favour of any person; but does not include
any retention of title provision.

     

    “Estimated Profit” means the forecast net profit attributable to
the equity holders of the Company for the year ending 31 December 2008 under
HKFRS, excluding all non-recurring, exceptional and extraordinary items and
denominated in RMB, to be set out in the Profit Forecast Memo.

     

    “Founder Shareholder”
means Mr Lin Shuipan.

     

    “Group” means the
Company and each of its Subsidiaries.

     

    “HKFRS” means Hong
Kong Financial Reporting Standards as in effect from time to time, consistently
applied during the periods involved.

     

    “Hong Kong” means Hong
Kong Special Administrative Region of the People’s Republic of
China.

     

    “Hong Kong Stock
Exchange” means The Stock Exchange of Hong Kong Limited.

     

    “Initial Valuation”
means the amount in HK Dollars resulting from the following formula: 12.1
multiplied by Estimated Profit, where the HK Dollar amount shall be calculated
on the basis of RMB1:HK$1.0966.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “IPO” means an initial
public offering and listing of Ordinary Shares of the Company on a Stock
Exchange including a Qualified IPO.

     

    “IRR” means internal
rate of return.

     

    “Laws” means any
treaty, statute, directive, regulation, decision, order, instrument, by-law, or
any other law of, or having effect in, any jurisdiction.

     

    “Letter of
Application” means a letter of application for Preferred Shares
substantially in the form of schedule 1.

     

    “Listing Process”
shall mean the process of undertaking an application to a Stock Exchange for the
listing of and permission to deal in the Shares on that Stock
Exchange.

     

    “Ordinary Shares”
means the ordinary shares of HK$0.10 each in the share capital of the
Company.

     

    “Party” means a party
to this Agreement, and the meaning of “Parties” shall be construed accordingly.

     

    “Preferred Shares”
means the convertible redeemable preference shares of HK$0.10 each in the share
capital of the Company the principal terms of which are set out in schedule 3 of
this Agreement.

     

    “Profit Forecast Memo”
means the memorandum setting out the Estimated Profit to be prepared by the
Company pursuant to the requirements of the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited and which will be reviewed
for submission to the Hong Kong Stock Exchange by Ernst &
Young.

     

    “PRC” means the
People’s Republic of China, excluding for purposes of this Agreement, Hong Kong,
Macau Special Administrative Region of the People’s Republic of China and
Taiwan.

     

    “Qualified IPO” means
an IPO satisfying the following conditions: (i) it has been approved by the
Investor in accordance with clause 5.7 (for the avoidance of doubt this
condition shall only apply where the approval rights in clause 5.7 are
applicable), (ii) the offering places a market capitalisation on the Company of
at least US$650 million calculated on the basis of the offering price or the
Investor has otherwise been deemed to be satisfied with this condition pursuant
to clause 5.5(E), and (iii) upon the consummation of the IPO at least 25% of the
outstanding Ordinary Shares held by persons other than Affiliates of the
Company, may be traded without restriction (other than customary restrictions
contained in lock-up agreements with the managing underwriter).

     

    “Richwise” means
Richwise International Investment Group Limited.

     

    “RMB” means Renminbi,
the lawful currency of the People’s Republic of China.

     

    “Shares” means the
Ordinary Shares and the Preferred Shares in issue.

     

    “Share Purchase
Agreement” means the agreement entered into between the Investor, the
Company, the Founder Shareholder, Richwise and Dr Shi Jinlei in relation to the
sale and purchase of sale shares, representing 5.5 per cent. of the issued share
capital as enlarged by the Subscription.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Shareholders’
Agreement” means the agreement to be entered into between the Company,
the Founder Shareholder, Richwise, Tiancheng International Investment Group
Limited, HK Haima Group Limited, Eagle Rise Investments Limited and the
Investor, the form of which is attached as a schedule to the Share Purchase
Agreement.

     

    “Stock Exchange” means
any reputable international stock exchange to which the Company submits its
listing application, including but not limited to, the Hong Kong Stock
Exchange.

     

    “Subscription” means
the subscription of the Subscription Shares.

     

    “Subscription Shares”
means the 2,500 Preferred Shares to be allotted and issued by the Company and
subscribed by the Investor pursuant to clause 2 which will constitute 2.5 per
cent. of the issued share capital of the Company, as enlarged by the
Subscription.

     

    “Subsidiaries” means
the companies details of which are set out in schedule 3 to the Share Purchase
Agreement.

     

    “Warranties” means the
warranties set out in Schedule 5 and all other warranties, covenants and
indemnities on the part of the Company and the Founder Shareholder contained in
this Agreement or which are or may be implied by law.

     

    “XDLong Investment”
means XDLong Investment Holding Limited, a company incorporated in the British
Virgin Islands, further details of which are set out in Part 1 of schedule 3 to
the Share Purchase Agreement.

     

    
      	
              1.2

            	
              Construction
      of certain references

            

    

     

    In this
Agreement, where the context admits:

     

    
      	
               
      

            	
              (A)

            	
              where
      any statement is qualified by the expression “so far as the relevant
      Party is aware” or “to the best of the
      relevant Party’s knowledge and belief” or any similar expression in
      relation to any Party, that statement shall be deemed to be made after
      such Party has made reasonable
inquiries;

            

    

     

    
      	
               
      

            	
              (B)

            	
              references
      to clauses and schedules are references to clauses of and schedules to
      this Agreement, references to paragraphs are, unless otherwise stated,
      references to paragraphs of the schedule in which the reference appears,
      and references to this Agreement include the
  schedules;

            

    

     

    
      	
               
      

            	
              (C)

            	
              references
      to the singular shall include the plural and vice versa and references to
      the masculine, the feminine and the neuter shall include all such
      genders;

            

    

     

    
      	
               
      

            	
              (D)

            	
              “person”
      includes any individual, partnership, body corporate, corporation sole or
      aggregate, state or agency of a state, and any unincorporated association
      or organisation, in each case whether or not having separate legal
      personality;

            

    

     

    
      	
               
      

            	
              (E)

            	
              “company”
      includes any body corporate;

            

    

     

    
      	
               
      

            	
              (F)

            	
              references
      to the Selling Shareholders include a reference to each of them;
      and

            

    

     

    
      	
               
      

            	
              (G)

            	
              references
      to, or to any provision of, any Laws shall be construed also as references
      to all other Laws made under the Law referred to, and to all such Laws as
      for the time being amended, re-enacted (with or without amendment),
      consolidated or replaced or as their application is modified by other Laws
      from time to time.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
              1.3

            	
              Joint and Several
      liabilities

            

    

     

    All
warranties, representations, indemnities, covenants, agreements and obligations
given or entered into by the Company and the Founder Shareholder given in this
Agreement are given or entered into jointly and severally.

     

    
      	
              1.4

            	
              Headings

            

    

     

    The
headings and sub-headings are inserted for convenience only and shall not affect
the construction of this Agreement.

     

    
      	
              1.5

            	
              Schedules

            

    

     

    Each of
the schedules shall have effect as if set out herein.

     

    
      	
              2.

            	
              Issue
      and Subscription

            

    

     

    Subject
to the terms of this Agreement, the Investor agrees to subscribe for, and the
Company agrees to issue, the Subscription Shares (representing 2.5 per cent. of
the entire issued share capital of the Company following Completion as enlarged
by the allotment and issue of the Subscription Shares), free from all
Encumbrances on the terms and subject to the conditions of this
Agreement.

     

    
      	
              3.

            	
              Consideration

            

    

     

    
      	
              3.1

            	
              Amount

            

    

     

    The total
Consideration for the Subscription Shares shall be the sum which is 2.5% of the
Initial Valuation, but subject to adjustment pursuant to the Adjustment Events
referred to in schedule 2.

     

    
      	
              4.

            	
              Conditions

            

    

     

    
      	
              4.1

            	
              Conditions

            

    

     

    Completion
is conditional upon:

     

    
      	
               
      

            	
              (A)

            	
              the
      conditions referred to in clause 4.1 of the Share Purchase Agreement
      (other than condition 4.1 (J), being completion of the Subscription) being
      satisfied or waived in accordance with the terms of the Share Purchase
      Agreement;

            

    

     

    
      	
               
      

            	
              (B)

            	
              resolutions
      of the Company being duly passed by the Company in general meeting or by
      written resolution approving the terms of the transactions contemplated
      and contained in this Agreement;

            

    

     

    
      	
               
      

            	
              (C)

            	
              legal
      opinions addressed to the Investor being issued by PRC, BVI and Cayman
      Island legal counsels to the Company in a form to be agreed by the
      Parties; and

            

    

     

    
      	
               
      

            	
              (D)

            	
              all
      Warranties being true, accurate and complete in all material respects as
      of the date of Completion, 

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    and
in the event that all the Conditions shall not have been satisfied or waived in
accordance with clause 4.3 on or before the earlier of (i) 30 July 2008 and (ii) the date on
which the submission of formal application for listing (Form C1) is made to the
Hong Kong Stock Exchange, or such later date as the Parties may agree, this
Agreement shall lapse and no Party shall make any claim against any other in
respect hereof, save for any antecedent breach.

     

    
      	
              4.2

            	
              Disclosure of difficulties in
      satisfying Conditions

            

    

     

    Should
the Company, the Founder Shareholder or the Investor become aware of anything
which will or may prevent any of the Conditions from being satisfied they shall
disclose such matters to the other Parties.

     

    
      	
              4.3

            	
              Waiver

            

    

     

    The
Investor may waive in writing in whole or in part all of the
Conditions.

     

    
      	
              5.

            	
              Provisions
      in relation to the Listing
Process

            

    

     

    
      	
              5.1

            	
              Co-operation

            

    

     

    Without
prejudice to the rights and obligations of the relevant Parties under clause 11
and clause 12, the Company, the Founder Shareholder and the Investor severally
agree to co-operate in any dealings with or submission to any Authority pursuant
to the Listing Process such that:

     

    
      	
               
      

            	
              (A)

            	
              all
      requests and enquiries from any such Authority shall be dealt with
      promptly by the parties in consultation with each other and in any event
      in accordance with any relevant time limit, with each Party promptly
      providing all information and assistance reasonably required by any such
      Authority upon being requested to do so by such Authority or by any other
      Party;

            

    

     

    
      	
               
      

            	
              (B)

            	
              each
      Party shall provide copies of any proposed communication with any such
      Authority to the other parties, together with any supporting documentation
      or information reasonably requested by any other Party, and shall take due
      consideration of any comments that any other Party may have in relation to
      any such proposed communication prior to making it, provided that no party
      shall be required to disclose any confidential information or business secrets
      which have not
      previously been disclosed to such other Party;
  and

            

    

     

    
      	
               
      

            	
              (C)

            	
              each
      Party shall promptly provide each other Party with copies of written
      communications and reports of all other communications with any such
      Authority subject to the deletion of confidential information or business
      secrets which have not previously been disclosed to each other
      Party.

            

    

     

    
      	
              5.2

            	
              Listing Process

            

    

     

    In the
event that the Stock Exchange indicates in writing to the Company that for the
purpose of considering and approving the IPO, the Parties to this Agreement
should consider amending or deleting any provision of this Agreement, the
Company shall immediately inform the Parties of such written indication and,
after the Company has used its best endeavours in negotiating and in assisting
the Parties to undertake negotiations with the Stock Exchange in relation to
such amendments, the Parties shall act in good faith and use their reasonable
commercial endeavours to consult and to resolve such request of the Stock
Exchange in a manner that does not cause delay to the Listing
Process.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
              5.3

            	
              Amendments
      conditional

            

    

     

    Any
amendments to the rights of the Investor pursuant to clause 5.2 shall be
conditional upon completion of the IPO, which shall be deemed to take place upon
the commencement of trading of the Shares on the relevant Stock Exchange. If
completion of a proposed IPO does not occur within 6 months of the Investor
agreeing to any amendments to this Agreement in accordance with clause 5.2, such
amendments shall be void.

     

    
      	
              5.4

            	
              Investor’s Put
      Option

            

    

     

    
      	
               
      

            	
              (A)

            	
              Subject
      to clause 5.2, if the Stock Exchange requests any material amendments to
      any of the rights of the Investor in relation to the Adjustment Events,
      the Warranties or other Investor’s rights as set out under this clause
      5.4, in schedule 2 or schedule 3 of this Agreement and clause 6
      (Pre-emptions on issues of New Securities), clause 7 (Pre-emptions on
      transfers of Shares), clause 8 (Tag-along), clause 9 (Top-up acquisitions,
      Sale on IPO) and clause 11 (registration rights) of the Shareholders’
      Agreement, the Investor shall be entitled to require the Founder
      Shareholder to purchase all or part of the Subscription Shares at a price
      per Share equal to the sum of the Initial Valuation per share plus a
      return that yields 12% IRR.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      entitlement in clause 5.4 (A) is exercisable by the Investor giving a
      written notice to the Founder Shareholder at any time in the period
      commencing on the day on which the Stock Exchange requests in writing any
      amendments to this Agreement which falls under the scope of clause 5.4 (A)
      and ending on the 5th Business Day after such day.
      Completion of the transfer of Sale Shares pursuant to this clause 5.4
      shall occur on the third Business Day after such notice is
      given.

            

    

     

    
      	
              5.5

            	
              IPO other than a Qualified
      IPO

            

    

     

    
      	
               
      

            	
              (A)

            	
              Section
      (ii) of the definition of “Qualified IPO” in clause 1.1 contains a
      qualification that a Qualified IPO can only be achieved by the Company if
      at the time of listing the Company achieves a market capitalization of
      US$650 million. This clause 5.5 sets out circumstances in which a
      Qualified IPO can be achieved by the Company with a market capitalization
      below US$650 million.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      Founder Shareholder can jointly serve on the investor a notice setting out
      the pricing of the offer shares for the proposed IPO and the possible
      non-occurrence of a Qualified IPO (the “Pricing
      Notice”) if:

            

    

     

    
      	
               
      

            	
              (1)

            	
              a
      listing is granted by a Stock Exchange;
and

            

    

     

    
      	
               
      

            	
              (2)

            	
              in
      the final determination of the offer price, the Founder Shareholder become
      aware that a market capitalization of US$650 million may not be
      achieved.

            

    

     

    
      	
               
      

            	
              (C)

            	
              After
      the Investor has been served with the Pricing Notice, the Investor shall
      be entitled to require the Founder Shareholder to purchase, on a Pro-rata
      Basis and on a several basis, all (but not part only) of the Subscription
      Shares at a price per Share equal to the sum of the initial Valuation per
      share plus a return that yields 12%
IRR.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (D)

            	
              The
      entitlement in clause 5.5(C) is exercisable by the Investor giving a
      written notice to the Founder no later than 48 hours from the time that
      the Pricing Notice is given (or is deemed to be given pursuant to clause
      13.10(A)). Completion of the transfer of Subscription Shares pursuant to
      this clause 5.5 shall occur on the third Business Day after such notice is
      given by the Investor

            

    

     

    
      	
               
      

            	
              (E)

            	
              If
      the Investor does not exercise its entitlement to require the Founder
      Shareholder to purchase the Subscription Shares within the period
      specified in clause 5.5(D), the Investor is deemed to have satisfied
      itself with the market capitalization qualification in section (ii) of the
      definition of “Qualified IPO” in clause 1.1 notwithstanding a market
      capitalization of US$650 million may not be achieved, and the market
      capitalization qualification in the definition of “Qualified IPO” will be
      deemed to be satisfied.

            

    

     

    
      	
               
      

            	
              (F)

            	
              For
      the avoidance of doubt, notwithstanding the waiver by the Investor of the
      market capitalization qualification in this clause 5.5, the other
      Investor’s rights in this Agreement will not be waived as a consequence of
      such waiver.

            

    

     

    
      	
              5.6

            	
              The Founder Shareholder’s Call
      Option

            

    

     

    
      	
               
      

            	
              (A)

            	
              If:

            

    

     

    
      	
               
      

            	
              (1)

            	
              the
      Stock Exchange requests any material amendments to any of the rights of
      the Investor referred to in clause
5.4(A);

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      Investor refuses to accept such
amendments;

            

    

     

    
      	
               
      

            	
              (3)

            	
              the
      Stock Exchange would not approve the proposed IPO without such amendments
      being made; and

            

    

     

    
      	
               
      

            	
              (4)

            	
              the
      Investor indicates it will not exercise the put option set out in clause
      5.4 or upon the expiry of the period referred to in clause 5.4(B), during
      which the Investor may exercise its rights under clause
      5.4(A).

            

    

     

    the
Founder Shareholder shall be entitled to require the Investor to sell all (but
not part only) of the Subscription Shares at a price per Share equal to the sum
of the Initial Valuation per share plus a return that yields 12%
IRR.

     

    
      	
               
      

            	
              (B)

            	
              The
      entitlement in clause 5.6(A) is exercisable by the Founder Shareholder
      giving a written notice to the Investor at any time after the earlier
      of:

            

    

     

    
      	
               
      

            	
              (1)

            	
              the
      Investor indicating it will not exercise the put option set out in clause
      5.4; and

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      Business Day immediately following the expiry of the period referred to in
      clause 5.4(B), during which the Investor may exercise its rights under
      clause 5.4(A).

            

    

     

    Completion
of the transfer of Sale Shares pursuant to this clause 5.6 shall occur on the
third Business Day after such notice is given.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
              5.7

            	
              Approval of Qualified
      IPO

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      venue of any IPO (including a Qualified IPO) other than the Main Board of
      the Hong Kong Stock Exchange shall be subject to the Investor’s prior
      written consent.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      offering size of any IPO (including a Qualified IPO) shall be subject to
      Investor’s prior written consent if the number of newly issued Shares
      available for subscription (including new Shares to be issued pursuant to
      the exercise of the over-allotment option) would represent more than 25
      per cent. of the total number of Shares in issue following the completion
      of the IPO on a Fully Diluted
basis.

            

    

     

    
      	
              6.

            	
              Completion

            

    

     

    
      	
              6.1

            	
              Date and place of
      Completion

            

    

     

    Completion
shall take place at the offices of Simmons & Simmons in Hong Kong on the
4th
Business Day after both this Agreement and the Share Purchase Agreement
cease to be subject to any Conditions (as defined in the relevant agreement),
other those Conditions which will be satisfied on Completion, or any other place
or time as agreed between the parties.

     

    
      	
              6.2

            	
              Company’s
      obligations

            

    

     

    On
Completion the Company shall, subject to the due performance by the Investor of
its obligations under clause 6.3:

     

    
      	
            	
              (A) 

            	
              deliver
      to the Investor:

            

    

     

    
      
        	
              	
                (1)

              	
                copies
      of resolutions of the Company duly passed by the Company in general
      meeting or by written resolution approving the terms of the transactions
      contemplated and contained with this Agreement referred to in clause
      4.1(A);

              

      

    

     

    
      
        	
              	
                (2)

              	
                original
      legal opinions addressed to the Investor issued by the counsels to the
      Company in respect of the laws of the PRC, British Virgin Islands and
      Cayman Islands referred to in clause
4.1(C);

              

      

    

     

    
      
        	
                 
      

              	
                (B)

              	
                allot
      and issue to the Investor the Subscription Shares credited as fully paid
      and shall promptly register the Investor as a member of the Company in
      respect of the Subscription Shares;

              

      

       

      
        	
                 
      

              	
                (C)

              	
                deliver
      to the Investor the original share certificate(s) to be issued to the
      Investor in relation to the Subscription
Shares;

              

      

       

      
        	
                 
      

              	
                (D)

              	
                procure
      that a meeting of the Board is held at which Subscription Shares shall be
      allotted and issued to the Investor and registered in its name credited as
      fully paid; and

              

      

       

      
        	
                 
      

              	
                (E)

              	
                procure
      the delivery of a copy of register of members of the Company showing the
      Investor’s name recorded as a shareholder of the Company in connection
      with the Subscription Shares certified by a director or authorised officer
      of the Company.

              

      

    

     

    
      	
              6.3

            	
              Investor’s
      obligations

            

    

    

    On
Completion the Investor shall:

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (A)

            	
              deliver
      a Letter of Application in respect of the Subscription Shares to the
      Company; and

            

    

     

    
      	
               
      

            	
              (B)

            	
              pay
      the Consideration for the Subscription Shares as provided by clause 3
      (before any adjustment as is therein mentioned) by telegraphic transfer to
      such bank account as shall be notified by the Company to the Investor in
      writing on the Company’s letterhead and duly signed by an authorised
      representative of the Company, at least 3 Business Days prior to
      Completion.

            

    

     

    
      	
              7.

            	
              Warranties

            

    

     

    
      	
              7.1

            	
              General

            

    

     

    The
Founder Shareholder and the Company hereby jointly and severally represent and
warrant to the Investor in the terms of the Warranties.

     

    
      	
              7.2

            	
              Disclosure

            

    

     

    The
Warranties are given subject to facts and matters fairly and specifically
disclosed in or by this Agreement and the Disclosure Letter, and the Investor
shall accordingly have no claim in respect of any of the Warranties in relation
to any fact or matter so disclosed.

     

    
      	
              7.3

            	
              Warranties
      repeated

            

    

     

    Each of
the Warranties is given on the date of this Agreement on the basis that it is
true and accurate as of the date of the Agreement. Each of the Warranties is
given on the basis that it will remain true and accurate in all respects up to
and including Completion, and the Company and the Founder Shareholder undertake
to forthwith disclose in writing to the Investor any matter or thing which may
arise or become known to the Company and the Founder Shareholder after the date
of this Agreement and before Completion which is inconsistent with any of the
Warranties.

     

    
      	
              7.4

            	
              Consequences of
      breach

            

    

     

    In the
event of it becoming apparent on or before Completion that the Company or the
Founder Shareholder are in material breach of any of the Warranties or any other
term of this Agreement, the Investor may at its option:

     

    
      	
            	
              (A) 

            	
              rescind
      this Agreement by notice in writing to the other Parties;
    or

            

    

     

    
      
        
          	
                	
                  (B)

                	
                  proceed
      to Completion but without prejudice to their right to claim for breach of
      this Agreement or the
Warranties.

                

        

      

    

     

    
      	
              7.5

            	
              Warranties by
      Investor

            

    

     

    The
Investor warrants to each of the Company and Founder Selling Shareholder as
follows:-

     

    
      	
               
      

            	
              (A)

            	
              the
      Investor is validly incorporated, in existence and duly registered under
      the laws of the jurisdiction of its
  incorporation;

            

    

     

    
      	
               
      

            	
              (B)

            	
              the
      Investor has the requisite power and authority to enter into and perform
      this Agreement;

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (C)

            	
              this
      Agreement constitutes binding obligations of the Investor in accordance
      with its respective terms;

            

    

     

    
      	
               
      

            	
              (D)

            	
              no
      order has been made and no resolution has been passed for the winding up
      of the Investor or for a provisional liquidator to be appointed in respect
      of it and no petition has been presented and no meeting has been convened
      for the purposes of winding up the
Investor;

            

    

     

    
      	
               
      

            	
              (E)

            	
              no
      administration order has been made and no petition has been presented and
      no other action for such an order has been taken in respect of the
      Investor;

            

    

     

    
      	
               
      

            	
              (F)

            	
              no
      receiver (which expression shall include an administrative receiver) has
      been appointed in respect of the
Investor;

            

    

     

    
      	
               
      

            	
              (G)

            	
              the
      Investor is not insolvent or unable to pay its debts and has not stopped
      paying its debts as they fall due;
and

            

    

     

    
      	
               
      

            	
              (H)

            	
              the
      execution and delivery of, and the performance by the Investor of its
      obligations under, this Agreement will
not:

            

    

     

    
      
        	
                 
      

              	
                (1)

              	
                be
      or result in a breach of any provision of the memorandum or articles of
      association of the Investor;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                be
      or result in a breach of, or constitute a default under, any instrument to
      which the Investor is a Party or by which the Investor is bound and which
      is material in the context of the transactions contemplated by this
      Agreement;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                be
      or result in a breach of any order, judgment or decree of any court or
      governmental agency to which the Investor is a Party or by which the
      Investor is bound and which is material in the context of the transactions
      contemplated by this Agreement; or

              

      

       

      
        	
                 
      

              	
                (4)

              	
                require
      the Investor to obtain any consent or approval of, or give any notice to
      or make any registration with, any governmental or other authority which
      has not been obtained or made at the date hereof both on an unconditional
      basis and on a basis which cannot be revoked (save pursuant to any legal
      or regulatory entitlement to revoke the same other than by reason of any
      misrepresentation or
misstatement).

              

      

    

     

    Each of
the foregoing warranties given by the Investor (“Investor’s
Warranties”) is given on the basis that it will remain true and accurate
in all respects up to and including Completion and the investor undertakes to
forthwith disclose in writing to the Company and the Founder Shareholder any
matter or thing which may arise or become known to the Investor after the date
of this Agreement and before Completion which is inconsistent with any of the
Investor’s Warranties.

     

    
      	
              7.6

            	
              Breach of
      warranties

            

    

     

    In the
event of it becoming apparent on or before Completion that the Investor is in
material breach of any of the Investor’s Warranties or any other term of this
Agreement the Company and the Founder Shareholder may at their option
either:

     

    
      	
               
      

            	
              (A)

            	
              rescind
      this Agreement by notice in writing to the Investor;
  or

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (B)

            	
              proceed
      to Completion but without prejudice to their right to claim for breach of
      this Agreement or the investor’s
Warranties.

            

    

     

    
      	
              8.

            	
              Indemnification

            

    

     

    
      	
              8.1

            	
              Indemnification

            

    

     

    The
Company and Founder Shareholder on a joint and several basis hereby agree to
indemnify, defend and hold harmless the Investor, its Affiliates and their
respective successors and assigns, representatives, directors, officers,
members, partners, employees and agents (individually, an “Indemnified Party”
and, collectively, the “Indemnified Parties”)
from and against all and any losses, asserted against, imposed upon or incurred
by any Indemnified Party by reason of or resulting from a breach of the
Warranties or this Agreement by the Company or the Founder Shareholder (an
“Indemnified
Event”).

     

    
      	
              8.2

            	
              Defined
      terms

            

    

     

    For the
purposes of this clause 0 the Company and the Founder Shareholder are referred
to as the “Indemnifying
Parties”.

     

    
      	
              8.3

            	
              Indemnification
      Procedures

            

    

     

    
      	
               
      

            	
              (A)

            	
              If
      any Indemnified Party is entitled to indemnification hereunder, such
      indemnified Party shall give notice (an “Indemnity
      Notice”) to the Indemnifying Parties of any claim or of the
      commencement of any action or proceeding against such Indemnified Parties
      brought by any third party with respect to which such Indemnified Party
      seeks indemnification pursuant hereto as soon as practical following the
      time at which the
      Investor discovers such claim; provided, however, that any delay to so notify the
      Indemnifying Parties shall not relieve the Indemnifying Parties from any
      obligation or liability.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      Indemnifying Parties shall have the right, exercisable by giving written
      notice to an Indemnified Party within thirty (30) days after the receipt
      of an Indemnity Notice from such Indemnified Party of such claim, Action
      or Proceeding to assume, at the expense of such Indemnifying Parties, the
      defense of any such claim, action or proceeding with counsel reasonably
      satisfactory to such Indemnified
Party.

            

    

     

    
      	
               
      

            	
              (C)

            	
              The Indemnified
      Party shall have the right to control the defense or settlement of that
      portion of any claim which seeks an order, injunction or other
      equitable relief against the Indemnified Party which, if successful, could
      materially interfere with the business, operations, assets, financial
      condition or prospects of the Indemnified
Party.

            

    

     

    
      	
               
      

            	
              (D)

            	
              After
      notice from an Indemnifying Party to the Indemnified Party of its election
      to assume the defense of such claim, action or proceeding, none of such
      Indemnifying Parties shall be liable to the Indemnified Party for any
      legal or other expenses subsequently incurred by the Indemnified Party in
      connection with the defense thereof other than reasonable costs of
      investigation; provided that the Indemnified Party shall have the right to
      employ separate counsel to represent the Indemnified Party which may be
      subject to liability arising out of any claim in respect of which
      indemnity may be sought by the Indemnified Party against the indemnifying
      Parties, but the fees and expenses of such counsel shall be for the
      account of such Indemnified Party unless (i) the Indemnifying Parties and
      the Indemnified Party shall have mutually agreed to the retention of such
      counsel or (ii) in the reasonable opinion of counsel to such Indemnified
      Party, representation of both parties by the same counsel would be
      inappropriate due to actual or potential conflicts of interest between
      them, it being understood, however, that the Indemnifying Parties shall
      not, in connection with any one such claim, action or proceeding but
      substantially similar or related claims, action or proceeding in the same
      jurisdiction arising out of the same general allegations or circumstances,
      be liable for the fees and expenses of more than one separate firm of
      attorneys (together with appropriate local counsel) at any time for all
      Indemnified Parties.

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (E)

            	
              None
      of the Indemnifying Parties shall consent to entry of any judgment or
      enter into any settlement that does not include as an unconditional term
      thereof the giving by claimant or plaintiff to such Indemnified Party or
      Parties of a release from all liability in respect of such claim, action
      or proceeding.

            

    

     

    
      	
              9.

            	
              Undertakings
      by the Founder Shareholder and the
  Company

            

    

     

    
      	
              9.1

            	
              In
      consideration of the Investor entering into this Agreement at the request
      of the Founder Shareholder, the Founder Shareholder agrees and undertakes
      that as the controlling shareholder of the Company, he
    shall:

            

    

     

    
      	
               
      

            	
              (A)

            	
              duly
      observe and perform all his obligations under clauses 5.4 and 5.5 of this
      Agreement; and

            

    

     

    
      	
               
      

            	
              (B)

            	
              on
      the occurrence of an Adjustment Event, perform all his obligations
      referred to in schedule 2 to this
Agreement.

            

    

     

    
      	
              9.2

            	
              The
      Company agrees and undertakes that it will not take any action with
      respect to the use of the proceeds of the Subscription that would result
      in a violation by any person investing or participating in the
      Subscription of any regulation or statute administered by the Office of
      Foreign Assets Control of the United States Treasury Department (“U.S.
      Economic Sanctions”), including, without limitation, using the proceeds of
      the Subscription to fund, directly or indirectly, any business activities
      with, or for the benefit of, a government, national, resident or legal
      entity of Cuba, Sudan, Iran, Myanmar, or any other country with respect to
      which U.S. persons, as defined in U.S. Economic Sanctions, are prohibited
      from doing business.

            

    

     

    
      	
              10.

            	
              Protection
      of the Company and Founder
Shareholder

            

    

     

    The
provisions of schedule 4 shall apply.

     

    
      	
              11.

            	
              Confidentiality

            

    

     

    
      	
              11.1

            	
              Confidentiality

            

    

     

    Subject
to clause 11.2 and to clause 12, each Party:-

     

    
      
        	
              	
                (A)

              	
                shall
      treat as strictly confidential the provisions of this Agreement and the
      process of their negotiation and all information about the other Party
      obtained or received by it as a result of negotiating, entering into or
      performing its obligations under this Agreement (“Confidential
      Information”);
    and

              

      

    

     

    
      
        	
              	
                (B)

              	
                shall
      not, except with the prior written consent of each other Party (which
      shall not be unreasonably withheld or delayed), make use of (save for the
      purposes of performing its obligations under this Agreement) or disclose
      to any person any Confidential
Information.

              

      

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	
              11.2

            	
              Permitted disclosure or
      use

            

    

     

    Clause
11.1 shall not apply if and to the extent that the Party or its Affiliates
disclosing Confidential Information can demonstrate that:

     

    
      	
               
      

            	
              (A)

            	
              such
      disclosure by such Party or its Affiliates is required by law or is
      required or requested by any supervisory, regulatory or governmental body
      having jurisdiction over it (including but not limited to the Securities
      and Futures Commission, the Hong Kong Stock Exchange) and whether or not
      the requirement or request has the force of law;
  or

            

    

     

    
      	
               
      

            	
              (B)

            	
              such
      disclosure by such Party and/or its Affiliates is to its professional
      advisers in relation to the negotiation, entry into or performance of this
      Agreement or any matter arising out of the
same;

            

    

     

    
      	
               
      

            	
              (C)

            	
              in
      the case of the Investor, such disclosure is to its Affiliates and its and
      their respective directors, officers, employees, agents and advisers and
      any investor or fund manager of the
Investor;

            

    

     

    
      	
               
      

            	
              (D)

            	
              such
      disclosure is required to facilitate the Listing Process and to be made
      pursuant to clause 5.1;

            

    

     

    
      	
               
      

            	
              (E)

            	
              such
      disclosure is required and necessary for the satisfaction of any of the
      Conditions; or

            

    

     

    
      	
               
      

            	
              (F)

            	
              in
      the case of a disclosure or use, the Confidential Information concerned
      was lawfully in its possession (as evidenced by written records) prior to
      its being obtained or received as described in clause 11.1(A);
      or

            

    

     

    
      	
               
      

            	
              (G)

            	
              in
      the case of a disclosure or use, the Confidential Information concerned
      has come into the public domain other than through its fault or the fault
      of any person to whom such Confidential Information has been disclosed in
      accordance with clause 11.1(B).

            

    

     

    
      	
              11.3

            	
              Continuance of
      restrictions

            

    

     

    The
restrictions contained in this clause 11 shall survive Completion and shall
continue without limit of time.

     

    
      	
              11.4

            	
              Privilege

            

    

     

    Where any
confidential information is also privileged, the waiver of such privilege is
limited to the purposes of this Agreement and does not, and is not intended to,
result in any wider waiver of the privilege. Any Party hereto in possession of
any confidential information relating to any other Party hereto (a “privilege holder”) shall take all reasonable steps to protect the
privilege of the privilege holder therein and shall inform the privilege holder
if any step is taken by any other person to obtain any of its privileged
confidential information.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      	
              12.

            	
              Announcements

            

    

     

    
      	
              12.1

            	
              Restrictions

            

    

     

    Subject
to clause 12.2, and whether or not any restriction contained in clause 11
applies, no Party to this Agreement shall make any announcement, (including,
without limitation any communication to the public or to all or any of the
employees of the Company) concerning the provisions or subject matter of this
Agreement or containing any information about any other Party without the prior
written approval of the others (which shall not be unreasonably withheld or
delayed) nor shall any Party use the name of Goldman, Sachs & Co., or any
Affiliate of the Investor without obtaining in each instance the prior written
consent of the Investor.

     

    
      	
              12.2

            	
              Permitted
      announcements

            

    

     

    Clause
12.1 shall not apply if and to the extent that such announcement is required for
the Party and/or its Affiliates by law or by any supervisory, regulatory or
governmental body having jurisdiction over it or in connection with the Listing
Process or in the case of the Investor and/or its Affiliates, to its Affiliates
and its and their respective directors, officers, employees, agents and advisers
and its investors and/or fund managers and whether or not the requirement has
the force of law and provided that any such announcement shall be made only
after consultation with the other parties.

     

    
      	
              12.3

            	
              Continuance of
      restrictions

            

    

     

    The
restrictions contained in this clause 12 shall survive Completion and shall
continue without limit of time.

     

    
      	
              13.

            	
              Provisions
      relating to this Agreement

            

    

     

    
      	
              13.1

            	
              Successors and
      assigns

            

    

     

    This
Agreement shall be binding upon and enure for the benefit of the successors of
the parties but shall not be assignable, except for an assignment by the
Investor to any of its Affiliates. Any purported assignment, except for an
assignment by the Investor to any of its Affiliates, shall be void.

     

    
      	
              13.2

            	
              Whole
      agreement

            

    

     

    This
Agreement, together with any documents referred to in it, constitutes the whole
agreement between the Parties relating to its subject matter and supersedes and
extinguishes any prior drafts, agreements, and undertakings, whether in writing
or oral, relating to such subject matter.

     

    
      	
              13.3

            	
              Agreement survives
      Completion

            

    

     

    The
Warranties and all other provisions of this Agreement, in so far as the same
shall not have been performed at Completion, shall remain in full force and
effect notwithstanding Completion.

     

    
      	
              13.4

            	
              Rights cumulative and other
      matters

            

    

     

    
      
        	
              	
                (A)

              	
                The
      rights, powers, privileges and remedies provided in this Agreement are
      cumulative and are not exclusive of any rights, powers, privileges or
      remedies provided by law or
otherwise.

              

      

    

     

    
      
        	
              	
                (B)

              	
                No
      single or partial exercise of any right, power, privilege or remedy under
      this Agreement shall prevent any further or other exercise thereof or the
      exercise of any other right, power, privilege or
  remedy.

              

      

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	
              13.5

            	
              Invalidity

            

    

     

    If any
provision of this Agreement shall be held to be illegal, void, invalid or
unenforceable under the laws of any jurisdiction, the legality, validity and
enforceability of the remainder of this Agreement in that jurisdiction shall not
be affected, and the legality, validity and enforceability of the whole of this
Agreement in any other jurisdiction shall not be affected.

     

    
      	
              13.6

            	
              Severability

            

    

     

    The
provisions contained in each clause and/or sub-clause of this Agreement shall be
enforceable independently of the others and the invalidity of any one provision
shall not affect the validity of the others.

     

    
      	
              13.7

            	
              Variation

            

    

     

    No
variation of this Agreement shall be binding on any Party unless and to the
extent that the same is recorded in a written agreement duly entered into by all
Parties.

     

    
      	
              13.8

            	
              Counterparts

            

    

     

    This
Agreement may be executed in any number of counterparts, which shall together
constitute one Agreement. Any Party may enter into this Agreement by signing any
such counterpart.

     

    
      	
              13.9

            	
              Costs

            

    

     

    Save as
otherwise expressly provided herein, each Party shall bear its own costs arising
out of or in connection with the preparation, negotiation and implementation of
this Agreement.

     

    
      	
              13.10

            	
              Notices

            

    

     

    
      
        	
              	
                (A)

              	
                Any
      notice or other communication required to be given under this Agreement or
      in connection with the matters contemplated by it shall, except where
      otherwise specifically provided, be in writing in the English language and
      shall be addressed as provided in clause 13.10(B) and may
    be:

              

      

    

     

    
      
        	
                 
      

              	
                (1)

              	
                personally
      delivered, in which case it shall be deemed to have been given upon
      delivery at the relevant address;
or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                if
      within Hong Kong, sent by pre-paid post, in which case it shall be deemed
      to have been given two Business Days after the date of posting;
      or

              

      

       

      
        	
                 
      

              	
                (3)

              	
                if
      from or to any place outside Hong Kong, sent by pre-paid airmail or by air
      courier, in which case it shall be deemed to have been given seven
      Business Days after the date of posting in the case of airmail or two
      Business Days after delivery to the courier in the case of air courier;
      or

              

      

       

      
        	
                 
      

              	
                (4)

              	
                sent
      by fax, in which case it shall be deemed to have been given when
      despatched, subject to confirmation of uninterrupted transmission by a
      transmission report provided that any notice despatched by fax after 17.00
      hours (at the place where such fax is to be received) on any day shall be
      deemed to have been received at [08.00] on the next Business
      Day.

              

      

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    
      	
            	
              (B) 

            	
              The
      addresses and other details of the parties referred to in clause 13.10(A)
      are, subject to clause 13.10(D):

            

    

     

    
      
        
          	
                  For
      the Company:

                	 
      
	 
      	 
      
	
                  Name:

                	
                  XDLong
      International Company Limited

                
	 
      	 
      
	
                  Address:

                	
                  Xidelong
      Industrial Zone

                  Wudi,
      Chendai

                  Jinjiang

                  Fujian
      Province

                  China

                
	 
      	 
      
	
                  Fax
      number:

                	
                  (86)
      595 8206 9999

                
	 
      	 
      
	
                  For
      the Founder Shareholder:

                	 
      
	 
      	 
      
	
                  Name:

                	
                  Lin
      Shuipan

                
	 
      	 
      
	
                  Address:

                	
                  Xidelong
      Industrial Zone

                  Wudi,
      Chendai

                  Jinjiang

                  Fujian
      Province

                  China

                
	 
      	 
      
	
                  Fax
      number:

                	
                  (86)
      595 8206 9999

                
	 
      	 
      
	
                  For
      the Investor:

                	 
      
	 
      	 
      
	
                  Name:

                	
                  Elevatech
      Limited

                
	 
      	 
      
	
                  For
      the attention of:

                	
                  Raymond
      Chow/Wendy Koh

                
	 
      	 
      
	
                  Address:

                	
                  c/o
      Goldman Sachs (Asia) L.L.C.

                  68/F,
      Cheung Kong Center

                  2
      Queen’s Road Central

                  Hong
      Kong

                
	 
      	 
      
	
                  Fax
      number:

                	
                  +852
      2233 5619

                

        

      

    

     

    
      	
            	
              (C) 

            	
              In
      proving service of any notice it shall be sufficient to
    prove:

            

    

     

    
      
        	
                 
      

              	
                (1)

              	
                in
      the case of a notice sent by post that such notice was properly addressed,
      stamped and placed in the post;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                in
      the case of a notice personally delivered that it was declined to or left
      at the specified address;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                in
      the case of a notice sent by fax that it was duly despatched to the
      specified number as confirmed by a transmission report;
  and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                in
      the case of a notice sent by air courier that it was delivered to a
      representative of the
courier.

              

      

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (D)

            	
              Any
      Party to this Agreement may notify the other parties of any change to its
      address or other details specified in clause 13.10(B) provided that such
      notification shall only be effective on the date specified in such notice
      or five Business Days after the notice is given, whichever is
      later.

            

    

     

    
      	
              14.

            	
              Waiver

            

    

     

    
      	
              14.1

            	
              Failure
      by any Party at any time or times to require performance of any provision
      of this Agreement shall in no manner affect his right to enforce such
      provision at a later time.

            

    

     

    
      	
              14.2

            	
              No
      waiver by any party of any condition or the breach of any term, covenant,
      representation or warranty contained in this Agreement (whether by conduct
      or otherwise) shall be deemed to be, or construed as, a further or
      continuing waiver of any such condition or breach or a waiver of any other
      condition or be deemed to be, or construed as, the breach of, or a waiver
      of, any other term, covenant, representation or warranty contained in this
      Agreement.

            

    

     

    
      	
              15.

            	
              Law
      and Jurisdiction

            

    

     

    
      	
              15.1

            	
              Hong Kong
      Law

            

    

     

    This
Agreement shall be governed by, and construed in accordance with, the laws of
Hong Kong.

     

    
      	
              15.2

            	
              Dispute
      Resolution

            

    

     

    
      
        	
                 
      

              	
                (A)

              	
                Any
      dispute, controversy or claim arising out of or relating to this
      Agreement, or the breach, termination or invalidity thereof, shall be
      settled by arbitration in Hong Kong under the UNCITRAL Arbitration Rules
      in accordance with the Hong Kong International Arbitration Centre (HKIAC)
      Procedures for the Administration of International Arbitration in force at
      the date of this Agreement. The HKIAC shall be the arbitration
      commission.

              

      

       

      
        	
                 
      

              	
                (B)

              	
                The
      seat of the arbitration shall be Hong Kong and the arbitration shall take
      place at the HKIAC. The appointing authority shall be the HKIAC. There
      shall be three arbitrators, one of whom shall be nominated by the
      Investor, one of whom shall be jointly nominated by the other Parties to
      the arbitration and one of whom shall be nominated by the HKIAC, who shall
      act as the chairman of the tribunal. The award shall be given by majority
      decision. If there be no majority, the award shall be made by the Chairman
      of the tribunal alone.

              

      

       

      
        	
                 
      

              	
                (C)

              	
                The
      language to be used in the arbitral proceedings shall be
      English.

              

      

       

      
        	
                 
      

              	
                (D)

              	
                By
      agreeing to arbitration pursuant to this clause, the Parties waive
      irrevocably their right to any form of appeal, review or recourse to any
      state court of other judicial authority, insofar as such waiver may
      validly be made.

              

      

       

      
        	
                 
      

              	
                (E)

              	
                Any
      Party shall have the right to seek interim injunctive relief from a court
      of competent jurisdiction, both before and after the arbitrators have been
      appointed, at any time up until the arbitrators have made their final
      award.

              

      

    

     

    AS WITNESS the hands
of the duly authorised representatives of the parties on the date first before
written.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    	
                            Mr
      Lin Shuipan

                            duly
      authorised for and on

                            behalf
      of Xdlong International

                            Company
      Limited

                          	
                            )

                            )

                            )

                            )

                          	
                            

                          
	 
      	 
      	 
      
	
                            SIGNED
      by Mr Lin Shuipan

                          	
                            )

                          	
                            

                          
	 
      	 
      	 
      
	
                            SIGNED
      by Mr Kevin Zhang

                            duly
      authorised for and on

                            behalf
      of the Elevatech Limited

                          	
                            )

                            )

                            )

                          	
                            

                          

                  

                

              

            

          

        

      

    

    
      
         

      

      
        44Unassociated Document

 

    DATED: 28
MARCH 2008

    Hong
Kong/-1/OPEN/-1/PYYL: L_LIVE_APAC1:501246v8

    

    Share
Purchase Agreement

    

    between

    

    Mr Lin
Shuipan and Richwise International Investment Group
Limited

    as
Selling Shareholders

    

    Dr Shi
Jinlei

    as
Indemnifier

    

    Elevatech
Limited

    as
Investor

    

    and

    

    Xdlong
International Company Limited

    as
Company

    

    relating
to

    

    the sale
and purchase of shares in the issued share capital
of Xdlong International Company Limited

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    CONTENTS

    

    
      
        	
                1.

              	
                Interpretation

              	
                1

              
	 
      	 
      	 
      
	
                2.

              	
                Sale of Shares

              	
                6

              
	 
      	 
      	 
      
	
                3.

              	
                Consideration

              	
                7

              
	 
      	 
      	 
      
	
                4.

              	
                Conditions

              	
                 
      7

              
	 
      	 
      	 
      
	
                5.

              	
                Provisions in relation to the Listing Process

              	
                9

              
	 
      	 
      	 
      
	
                6.

              	
                Completion

              	
                12

              
	 
      	 
      	 
      
	
                7.

              	
                Warranties

              	
                14

              
	 
      	 
      	 
      
	
                8.

              	
                Indemnification

              	
                16

              
	 
      	 
      	 
      
	
                9.

              	
                Selling Shareholders’ Protection

              	
                18

              
	 
      	 
      	 
      
	
                10.

              	
                Covenants to the Investor

              	
                18

              
	 
      	 
      	 
      
	
                11.

              	
                Confidentiality

              	
                18

              
	 
      	 
      	 
      
	
                12.

              	
                Announcements

              	
                19

              
	 
      	 
      	 
      
	
                13.

              	
                Provisions relating to this Agreement

              	
                20

              
	 
      	 
      	 
      
	
                14.

              	
                Waiver

              	
                22

              
	 
      	 
      	 
      
	
                15.

              	
                Law and Jurisdiction

              	
                23

              
	 
      	 
      	 
      
	
                SCHEDULE 1 : 

              	
                THE SELLING SHAREHOLDERS

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE 2 : 

              	
                THE COMPANY

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE 3 : 

              	
                THE SUBSIDIARIES

              	
                 
      

              
	 
      	 
      	 
      
	
                SCHEDULE 4 : 

              	
                WARRANTIES

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE 5 : 

              	
                ADJUSTMENT OF CONSIDERATION

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE 6 : 

              	
                PRINCIPAL TERMS OF
      THE PREFERENCE SHARES

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE 7 : 

              	
                PARTICULARS OF PREMISES

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE 8 : 

              	
                SELLING SHAREHOLDERS PROTECTION

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE 9 : 

              	
                SHAREHOLDERS’ AGREEMENT

              	
                 

              

      

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

     

    
      THIS
AGREEMENT is dated 28 March 2008 and made

      

      BETWEEN:

      

      
        	
                (1)

              	
                MR
      LIN SHUIPAN, (“Founder
      Shareholder”) holder of PRC passport number G14386872 of No. 103,
      Qiancanggong Road, Huatingkou Village, Chendai Town, Jinjiang City, Fujian
      Province, PRC;

              

      

      
        	
                (2)

              	
                RICHWISE
      INTERNATIONAL INVESTMENT GROUP LIMITED, (“Richwise”) a
      company incorporated in the British Virgin Islands having its registered
      office at Sea Meadow House, Blackburne Highway, Road Town, Tortola,
      British Virgin Islands;

              

      

      
        	
                (3)

              	
                DR
      SHI JINLEI (“Indemnifier”),
      holder of Hong Kong identity card number R314914(4), whose address is at
      2/F, Eton Tower, 8 Hysan Avenue, Causeway Bay, Hong
  Kong;

              

      

      
        	
                (4)

              	
                ELEVATECH
      LIMITED,
      (“Investor”), a
      company incorporated in Hong Kong and having its registered office at
      68th
      Floor, Cheung Kong Center, 2 Queen’s Road, Central, Hong Kong;
      and

              

      

      
        	
                (5)

              	
                XDLONG
      INTERNATIONAL COMPANY LIMITED, (“Company”),
      registered in the Cayman Islands having company number CT-207339 and
      having its registered office at Cricket Square, Hutchins Drive, P.O. Box
      2681, Grand Cayman KY1-1111, Cayman
Islands.

              

      

      

      BACKGROUND:

      

      
        	
                (1)

              	
                The
      Selling Shareholders wish to sell and the Investor wishes to acquire the
      Sale Shares.

              

      

      

      
        	
                (2)

              	
                The
      Indemnifier has agreed to indemnify the Investor in the event of any
      breach of the Richwise Warranties and any breach by Richwise of its other
      obligations under this Agreement.

              

      

      

      
        	
                (3)

              	
                Concurrently
      with the signing of this Agreement, the Investor, the Company and the
      Founder Shareholder will enter into the Subscription Agreement for the
      subscription by the Investor of such number of Preferred Shares as shall
      represent 2.5% of the issued share capital of the Company as enlarged as a
      result of the completion of the
Subscription.

              

      

      

      THE PARTIES AGREE AS
FOLLOWS:

      

      
        	
                1. 

              	
                Interpretation

              

      

      

      
        	
                1.1 

              	
                Definitions

              

      

      

      In this
Agreement (including the Recitals) except where the context admits
otherwise:

      

      “Adjustment Event”
means the adjustments events set out in paragraphs 2.1, 3.1, 4.1 and 11 of
schedule 5 of this Agreement.

      

      “Affiliate” means, in
relation to a body corporate, any subsidiary undertaking or parent undertaking
of such body corporate, and any subsidiary undertaking of any such parent
undertaking for the time being.

      

      “Audited Accounts”
means the audited consolidated balance sheet, audited cash flow statement and
the audited consolidated profit and loss account of the Company and the
Subsidiaries in respect of each of the three financial years ended on 31
December 2005, 31 December 2006 and 31 December 2007 reported on by Ernst &
Young and prepared in accordance with the principles of merger accounting and
HKFRS, including, in each case, the notes thereto.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

     

    “Authority” means any
competent governmental, administrative, supervisory, regulatory, judicial,
determinative, disciplinary, enforcement or tax raising body, authority, agency,
board, department court or tribunal of any jurisdiction and whether
supranational, national, regional or local.

     

    “Balance Sheet Date”
means 31 December 2005 for the financial year of 2005, 31 December 2006 for the
financial year of 2006 and 31 December 2007 for the financial year of
2007.

     

    “Business Day” means a
day (other than a Saturday or Sunday) on which banks are open for ordinary
banking business in Hong Kong, the United States, the PRC, the Cayman
Islands.

     

    “BVI” means the
British Virgin Islands.

     

    “BVI Subscription
Agreement” means the agreement between Richwise, Founder Shareholder,
Chen Xiayu, XDLong Hong Kong and the PRC Subsidiaries dated 18 April 2007
concerning the subscription of shares by Richwise and the Founder Shareholder in
XDLong Investment.

     

    “Company Disclosure
Letter” means the letter dated the date of this Agreement written and
delivered by or on behalf of the Company and the Founder Shareholder and
addressed to the Investor on or before the execution of this
Agreement.

     

    “Completion” means
completion of the sale and purchase of the Sale Shares in accordance with clause
6.

     

    “Completion Articles”
means the new articles of association of the Company to be adopted by the
Company in accordance with the Conditions, reflecting the relevant terms as set
out under this Agreement, the Subscription Agreement and the Shareholders’
Agreement in a form to be agreed between the Parties prior to
Completion.

     

    “Completion Date”
means the day upon which Completion takes place.

     

    “Completion
Deliverables” means the documents to be delivered upon Completion as set
out in paragraph 2.2 in Part A of schedule 4.

     

    “Conditions” means the
conditions set out in clause 4.1.

     

    “Consent” means any
approval, consent, ratification, waiver or other authorisation;

     

    “Consideration” means
the consideration to be paid for the Sale Shares in accordance with clause
3.1.

     

    “Directors” means the
directors of the Company or any of the Subsidiaries.

     

    “Encumbrance” means
any, actual or contingent, (i) mortgage, charge (floating and fixed), pledge,
lien, assignment, hypothecation, deed of trust, security interest (including any
created by law), or other security agreement or arrangement that securing or
conferring any priority of payment in respect of any obligation of any person,
(ii) any lease, sub-lease, occupancy agreement, easement or covenant granting a
right of use or occupancy to any person and (iii) any proxy, power of attorney,
voting trust agreement, interest, option, right of first offer, negotiation or
refusal or transfer restriction in favour of any person; but does not include
any retention of title provision.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Estimated Profit”
means the forecast net profit attributable to the equity holders of the Company
for the year ending 31 December 2008 under HKFRS, excluding all non-recurring,
exceptional and extraordinary items and denominated in RMB, to be set out in the
Profit Forecast Memo.

     

    “Founder Shareholder”
means Mr Lin Shuipan.

     

    “Group” means the
Company and each of its Subsidiaries.

     

    “HKFRS” means Hong
Kong Financial Reporting Standards as in effect from time to time, consistently
applied during the periods involved.

     

    “Hong Kong” means Hong
Kong Special Administrative Region of the People’s Republic of
China.

     

    “Hong Kong Stock
Exchange” means The Stock Exchange of Hong Kong Limited.

     

    “Initial Valuation”
means the amount in HK Dollars resulting from the following formula: 12.1
multiplied by Estimated Profit, where the HK Dollar amount shall be calculated
on the basis of RMB1:HK$1.0966.

     

    “IPO” means an initial
public offering and listing of Ordinary Shares of the Company on a Stock
Exchange including a Qualified IPO.

     

    “IRR” means internal
rate of return.

     

    “Laws” means any
treaty, statute, directive, regulation, decision, order, instrument, by-law, or
any other law of, or having effect in, any jurisdiction.

     

    “Listing Process”
shall mean the process of undertaking an application to a Stock Exchange for the
listing of and permission to deal in the Shares on that Stock
Exchange.

     

    “Material Adverse
Effect” means, with respect to any person, any change, event or effect
that is materially adverse to the general affairs, business, management,
operations, assets, liabilities, cash flows, condition (financial or otherwise)
or results of operations or the ability to conduct the business (as currently
conducted or contemplated to be conducted) by such person.

     

    “Ordinary Shares”
means the ordinary shares of HK$0.10 each in the share capital of the
Company.

     

    “Party” means a party
to this Agreement, and the meaning of “Parties” shall be
construed accordingly.

     

    “Preferred Shares”
means the convertible redeemable preference shares of HK$0.10 each in the share
capital of the Company, the principal terms of which are set out in schedule 6
of this Agreement and to be set out in the Completion Articles.

     

    “PRC” means the
People’s Republic of China, excluding for purposes of this Agreement, Hong Kong,
Macau Special Administrative Region of the People’s Republic of China and
Taiwan.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “PRC Subsidiary” means
each of Xidelong (China) Limited  and Fujian
Xidelong Sports Goods Limited , both
incorporated under the laws of the PRC and collectively the “PRC
Subsidiaries”.

     

    “Premises” means the
land and premises the particulars of which are set out in schedule
7.

     

    “Profit Forecast Memo”
means the memorandum setting out the Estimated Profit to be prepared by the
Company pursuant to the requirements of the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited and which will be reviewed
for submission to the Hong Kong Stock Exchange by Ernst &
Young.

     

    “Pro-rata Basis” means
the proportion that the number of Sale Shares to be sold to the Investor by each
of the Selling Shareholders bears to the total number of Sale Shares, which
shall be 2/5.5 for the Founder Shareholder and 3.5/5.5 for
Richwise.

     

    “Qualified IPO” means
an IPO satisfying the following conditions: (i) it has been approved by the
Investor in accordance with clause 5.7 (for the avoidance of doubt this
condition shall only apply where the approval rights in clause 5.7 are
applicable), (ii) the offering places a market capitalisation on the Company of
at least US$650 million calculated on the basis of the offering price or the
Investor has otherwise been deemed to be satisfied with this condition pursuant
to clause 5.5(E), and (iii) upon the consummation of the IPO at least 25% of the
outstanding Ordinary Shares held by persons other than Affiliates of the
Company, may be traded without restriction (other than customary restrictions
contained in lock-up agreements with the managing underwriter).

     

    “Richwise” means
Richwise International Investment Group Limited.

     

    “Richwise Completion
Deliverables” means the deliverables as defined in paragraph 2.3 of Part
B of schedule 4.

     

    “Richwise Disclosure
Letter” means the letter dated the date of this Agreement written and
delivered by or on behalf of Richwise and the Indemnifier and addressed to the
Investor on or before the execution of this Agreement.

     

    “Richwise Warranties”
means the warranties set out in Part B of schedule 4.

     

    “RMB” means Renminbi,
the lawful currency of the People’s Republic of China.

     

    “Sale Shares” means
the Shares, which shall be reclassified as Preference Shares, to be bought and
sold pursuant to clause 2.1 and which will constitute 5.5 per cent. of the
issued share capital of the Company, as enlarged by the
Subscription.

     

    “Selling Shareholders”
means Richwise and Founder Shareholder.

     

    “Shares” means the
Ordinary Shares and the Preferred Shares in issue.

     

    “Shareholder” means
holders of Shares.

     

    “Shareholders’
Agreement” means the agreement to be entered into between the Company,
the Selling Shareholders, Tiancheng International Investment Group Limited, HK
Haima Group Limited, Eagle Rise Investments Limited and the Investor, the form
of which is attached as schedule 9.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    “Stock Exchange” means
any reputable international stock exchange to which the Company submits its
listing application, including but not limited to, the Hong Kong Stock
Exchange.

     

    “Subscription” means
the subscription of 2,500 Preferred Shares by the Investor from the Company,
representing 2.5 per cent. of the issued share capital as enlarged by the
allotment and issue of the subscription Shares pursuant to the Subscription
Agreement.

     

    “Subscription
Agreement” means the agreement to be entered into between the Investor,
the Company and the Founder Shareholder in relation to the Subscription on the
date of this Agreement.

     

    “Tax” means any
liability of any member of or all of the Group to any form of taxation
(including those of a provisional nature) whenever created or imposed and
whether created or imposed in the British Virgin Islands, the Cayman Islands,
Hong Kong, the PRC or of any other part of the world and without prejudice to
the generality of the foregoing includes profits tax, provisional profits tax,
interest tax, income tax, enterprise income tax, local income tax, business tax,
value added tax, salaries tax, property tax, estate duty, death duty, capital
duty, stamp duty, payroll tax, withholding tax, rates, customs and exercise
duties and generally any tax, duty, impost, levy or rate or any amount payable
to the revenue, customs, fiscal or other authorities whether of British Virgin
Islands, the Cayman Islands, Hong Kong, the PRC or of any other part of the
world and all interest, penalties, claim, damages, fines, costs, charges, public
censure imposed by any authority and expenses incidental or relating to such
Tax.

     

    “Subsidiaries” means
the companies, details of which are set out in schedule 3, and “Subsidiary” means any
of the Subsidiaries.

     

    “Warranties” means the
warranties set out in Part A of schedule 4 and all other warranties, covenants
and indemnities on the part of the Company and the Founder Shareholder contained
in this Agreement or which are or may be implied by law.

     

    “XDLong Hong Kong”
means Hei Dai Lung Group Company Limited , a
company incorporated in Hong Kong, further details of which are set out in Part
2 of
schedule 3.

     

    “XDLong Investment”
means XDLong Investment Holding Limited, a company incorporated in the British
Virgin Islands, further details of which are set out in Part 1 of schedule
3

     

    
      	
              1.2

            	
              Construction
      of certain references

            

    

     

    In this
Agreement, where the context admits:

     

    
      	
               
      

            	
              (A)

            	
              where
      any statement is qualified by the expression “so far as the relevant
      Party is aware” or “to the best of the
      relevant Party’s knowledge and belief” or any similar expression in
      relation to any Party, that statement shall be deemed to be made after
      such Party has made reasonable
inquiries;

            

    

     

    
      	
               
      

            	
              (B)

            	
              references
      to clauses and schedules are references to clauses of and schedules to
      this Agreement, references to paragraphs are, unless otherwise stated,
      references to paragraphs of the schedule in which the reference appears,
      and references to this Agreement include the
  schedules;

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (C)

            	
              references
      to the singular shall include the plural and vice versa and references to
      the masculine, the feminine and the neuter shall include all such
      genders;

            

    

     

    
      	
               
      

            	
              (D)

            	
              “person”
      includes any individual, partnership, body corporate, corporation sole or
      aggregate, state or agency of a state, and any unincorporated association
      or organisation, in each case whether or not having separate legal
      personality;

            

    

     

    
      	
               
      

            	
              (E)

            	
              “company”
      includes any body corporate;

            

    

     

    
      	
               
      

            	
              (F)

            	
              references
      to the Selling Shareholders include a reference to each of them;
      and

            

    

     

    
      	
               
      

            	
              (G)

            	
              references
      to, or to any provision of, any Laws shall be construed also as references
      to all other Laws made under the Law referred to, and to all such Laws as
      for the time being amended, re-enacted (with or without amendment),
      consolidated or replaced or as their application is modified by other Laws
      from time to time.

            

    

     

    
      	
              1.3

            	
              Several
      liabilities

            

    

     

    
      	
               
      

            	
              (A)

            	
              All
      warranties, representations, indemnities, covenants, agreements and
      obligations given or entered into by the Company and the Founder
      Shareholder in this Agreement are given or entered into by them jointly
      and severally.

            

    

     

    
      	
               
      

            	
              (B)

            	
              All
      warranties, representations, indemnities, covenants, agreements and
      obligations given or entered into by Richwise and the Indemnifier in this
      Agreement are given or entered into by them jointly and
      severally.

            

    

     

    
      	
              1.4

            	
              Headings

            

    

     

    The
headings and sub-headings are inserted for convenience only and shall not affect
the construction of this Agreement.

     

    
      	
              1.5

            	
              Schedules

            

    

     

    Each of
the schedules shall have effect as if set out herein.

     

    
      	
              2.

            	
              Sale of
      Shares

            

    

     

    
      	
              2.1

            	
              Sale
      and purchase

            

    

     

    Subject
to the terms of this Agreement, each of the Selling Shareholders shall sell free
from all Encumbrances and together with all rights now or thereafter attaching
thereto, the number of Sale Shares set opposite his name in the second column of
schedule 1, and the Investor shall purchase all such Sale Shares. The Sale
Shares will comprise 5.5 per cent. of the issued share capital of the Company,
as enlarged following the Subscription.

     

    
      	
              2.2

            	
              No
      sale of part only

            

    

     

    Neither
the Selling Shareholders nor the Investor shall be obliged to complete the sale
and purchase of any of the Sale Shares unless the sale and purchase of all the
Sale Shares is completed simultaneously.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
              2.3

            	
              Waiver
      of pre-emption rights

            

    

     

    Each of
the Selling Shareholders hereby waives, and agrees to procure that all other
Shareholders shall waive, any pre-emption rights he may have relating to the
Sale Shares whether conferred by the Company’s Articles of Association or
otherwise.

     

    
      	
              3.

            	
              Consideration

            

    

     

    
      	
              3.1

            	
              Amount

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      total Consideration for the Sale Shares shall be the sum which is 5.5 per
      cent. of the Initial Valuation, but subject to adjustment pursuant to the
      Adjustment Events referred to in schedule
5.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      Consideration shall be apportioned between the Selling Shareholders in the
      proportions set out in the third column of schedule
  1.

            

    

     

    
      	
              4.

            	
              Conditions

            

    

     

    
      	
              4.1

            	
              Conditions

            

    

     

    Completion
is conditional upon:

    

    
      	
               
      

            	
              (A)

            	
              resolutions
      of the Company being duly passed by the Company in general meeting or by
      written resolution and being implemented in accordance with their
      respective terms and all corporate and governmental approvals having been
      obtained and remaining in full force
for:

            

    

     

    
      	
               
      

            	
              (1)

            	
              approving
      the terms of the transactions contemplated under and contained in this
      Agreement;

            

    

     

    
      	
               
      

            	
              (2)

            	
              creating
      the Preferred Shares by reclassifiying 2,000 Ordinary Shares held by the
      Founder Shareholder and 3,500 Ordinary Shares held by Richwise as
      Preferred Shares; and

            

    

     

    
      	
               
      

            	
              (3)

            	
              adopting
      the Completion Articles as the articles of association of the
      Company;

            

    

     

    
      	
               
      

            	
              (B)

            	
              the
      reorganisation of the Group having been completed
  by:

            

    

     

    
      	
               
      

            	
              (1)

            	
              the
      Company entering into a sale and purchase agreement with the existing
      shareholders of XDLong Investment for the purchase of the entire issued
      share capital of XDLong Investment by the Company and the Company having
      become the sole legal and beneficial owner of the entire issued share
      capital of XDLong Investment;

            

    

     

    
      	
               
      

            	
              (2)

            	
              in
      consideration for the sale of the respective shareholdings in XDLong
      Investment to the Company by existing shareholders of XDLong Investment,
      the Company will have issued to the following persons the number of
      Ordinary Shares set opposite their names prior to or upon
      Completion:

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Names

                                      	 	
                                        No. of Shares

                                      	 	 	
                                        Percentage of

                                        Shares in the

                                        Company

                                      	 
	 
      	 	 	 	 	 	 
	
                                        The
      Founder Shareholder

                                      	 	
                                        63,374
      and credit 1

                                        subscriber
      share as fully paid

                                      	 	 	 	
                                        65%

                                      	 
	 
      	 	 	 	 	 	 	 
	
                                        Richwise

                                      	 	 	
                                        14,625  

                                      	 	 	 	
                                        15%

                                      	 
	 
      	 	 	 	 	 	 	 	 
	
                                        Tiancheng
      International Investment Group Limited

                                      	 	 	
                                        9,750  

                                      	 	 	 	
                                        10%

                                      	 
	 
      	 	 	 	 	 	 	 	 
	
                                        HK
      Haima Group Limited

                                      	 	 	
                                        4,875  

                                      	 	 	 	
                                        5%

                                      	 
	 
      	 	 	 	 	 	 	 	 
	
                                        Eagle
      Rise Investment Limited

                                      	 	 	
                                        4,875  

                                      	 	 	 	
                                        5%

                                      	 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      	
               
      

            	
              (3)

            	
              immediately
      prior to Completion, the Company having reclassified 2,000 Ordinary Shares
      held by the Founder Shareholder and 3,500 Ordinary Shares held by Richwise
      as Preferred Shares in accordance with clause 4.1(A)(2);
    and

            

    

    

    
      	
               
      

            	
              (4)

            	
              receiving
      all corporate and governmental approvals for the implementation and
      effectiveness of the reorganisation referred to in this clause 4.1
      (B);

            

    

    

    
      	
               
      

            	
              (C)

            	
              the
      completion of all necessary and required registrations with the State
      Administration for Foreign Exchange in the PRC as required under the
      applicable laws and regulations of the PRC, whether in respect of any
      member of the Group or any shareholder of XDLong Investment and of the
      Company or otherwise;

            

    

    

    
      	
               
      

            	
              (D)

            	
              receipt
      by the Investor of an advanced draft of the Audited Accounts, together
      with a written confirmation from Ernst & Young that the Audited
      Accounts will not contain any material changes other than those matters or
      events specifically referred to in the written confirmation and (i) any
      item of such matters or events shall not have an adverse effect of more
      than 5% on the net profit in any of the profit and loss accounts for the
      financial years ended 31 December 2005, 31 December 2006 and 31 December
      2007 (“Profit
      and Loss Accounts”) or 5% on the net assets in the balance sheet
      for the financial year ended on 31 December 2007 (“Balance
      Sheet”); and (ii) all such matters or events shall not have an
      aggregate adverse effect of more than 10% on the net profit in any of the
      Profit and Loss Accounts or 5% on the net assets in the Balance
      Sheet;

            

    

    

    
      	
               
      

            	
              (E)

            	
              receipt
      by the Investor not later than 5 days prior to the Completion Date of an
      advanced draft of the Profit Forecast
Memo;

            

    

    

    
      	
               
      

            	
              (F)

            	
              receipt
      by the Investor of a business plan for the Group for the financial years
      2008 to 2010;

            

    

    

    
      	
               
      

            	
              (G)

            	
              if
      required pursuant to the terms of the BVI Subscription Agreement,
      fulfilment of the obligations owed by Richwise pursuant to clause 4 of the
      BVI Subscription Agreement;

            

    

    

    
      	
               
      

            	
              (H)

            	
              legal
      opinions addressed to the Investor being issued by PRC, BVI and Cayman
      Island legal counsels to the Company in a form to be agreed by the
      Parties;

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (I)

            	
              executive
      employment contracts with non-compete undertakings being entered into by
      Lin Shuipan, Ding Dongdong, Sun Jun, Cai Wanjiang, Liu Ming, Fan Qi and
      Tai Yau Ting with the Company;

            

    

     

    
      	
               
      

            	
              (J)

            	
              the
      completion of the Subscription pursuant to the Subscription
      Agreement;

            

    

     

    
      	
               
      

            	
              (K)

            	
              the
      execution of the Shareholders’ Agreement by all the parties to that
      agreement;

            

    

     

    
      	
               
      

            	
              (L)

            	
              the
      Completion Articles becoming effective under the laws of the Cayman
      Islands;

            

    

     

    
      	
               
      

            	
              (M)

            	
              there
      has been no change having, or that would or is likely to have, a Material
      Adverse Effect;

            

    

     

    
      	
               
      

            	
              (N)

            	
              all
      Warranties and Richwise Warranties being true, accurate and complete in
      all material respects as of the date of
  Completion;

            

    

     

    
      	
               
      

            	
              (O)

            	
              the
      articles of association of each PRC Subsidiary having been amended and
      taken effect such that they are in full compliance with all applicable
      laws and regulations in the PRC;
and

            

    

     

    
      	
               
      

            	
              (P)

            	
              a
      certificate having been issued by the competent PRC authority with respect
      to each PRC Subsidiary that such PRC Subsidiary has made contributions to
      the social security fund accounts of all its current and past employees in
      full (including any penalties, interest, fees and other similar levies)
      and in a timely manner as required by applicable PRC laws and regulations
      for the period starting from its establishment and ending on the
      Completion Date,

            

    

     

    and in
the event that all the Conditions shall not have been satisfied or waived in
accordance with clause 4.3 on or before the earlier of (i) 30 July 2008 and (ii)
the date on which the submission of formal application for listing (Form C1) is
made to the Hong Kong Stock Exchange, or such later date the Parties may agree,
this Agreement shall lapse and no Party shall make any claim against any other
in respect hereof, save for any antecedent breach.

     

    
      	
              4.2

            	
              Disclosure
      of difficulties in satisfying
Conditions

            

    

     

    Should
the Selling Shareholders become aware of anything which will or may prevent any
of the Conditions from being satisfied they shall forthwith disclose such
matters to the other Parties.

     

    
      	
              4.3

            	
              Waiver

            

    

     

    The
Investor may waive in writing all of the Conditions, in whole or in
part.

     

    
      	
              5.

            	
              Provisions in relation
      to the Listing Process

            

    

     

    
      	
              5.1

            	
              Co-operation

            

    

     

    Without
prejudice to the rights and obligations of the relevant Parties under clause 11
and clause 12, the Investor and the Selling Shareholders severally agree to
co-operate in any dealings with or submission to any Authority pursuant to the
Listing Process such that:

     

    
      	
               
      

            	
              (A)

            	
              all
      requests and enquiries from any such Authority shall be dealt with
      promptly by the parties in consultation with each other and in any event
      in accordance with any relevant time limit, with each Party promptly
      providing all information and assistance reasonably required by any such
      Authority upon being requested to do so by such Authority or by any other
      Party;

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (B)

            	
              each
      Party shall provide copies of any proposed communication with any such
      Authority to the other parties, together with any supporting documentation
      or information reasonably requested by any other Party, and shall take due
      consideration of any comments that any other Party may have in relation to
      any such proposed communication prior to making it, provided that no Party
      shall be required to disclose any confidential information or business
      secrets which have not previously been disclosed to such other Party;
      and

            

    

     

    
      	
               
      

            	
              (C)

            	
              each
      Party shall promptly provide each other Party with copies of written
      communications and reports of all other communications with any such
      Authority subject to the deletion of confidential information or business
      secrets which have not previously been disclosed to each other
      Party.

            

    

     

    
      	
              5.2

            	
              Listing
      Process

            

    

     

    In the
event that the Stock Exchange indicates in writing to the Company that for the
purpose of considering and approving the IPO, the Parties to this Agreement
should consider amending or deleting any provision of this Agreement, the
Company shall immediately inform the Parties of such written indication and,
after the Company has used its best endeavours in negotiating and in assisting
the Parties to undertake negotiations with the Stock Exchange in relation to
such amendments, the Parties shall act in good faith and use their reasonable
commercial endeavours to consult and to resolve such request of the Stock
Exchange in a manner that does not cause delay to the Listing
Process.

     

    
      	
              5.3

            	
              Amendments
      conditional

            

    

     

    Any
amendments to the rights of the Investor pursuant to clause 5.2 shall be
conditional upon completion of the IPO, which shall be deemed to take place upon
the commencement of trading of the Shares on the relevant Stock Exchange. If
completion of a proposed IPO does not occur within 6 months of the Investor
agreeing to any amendments to this Agreement in accordance with clause 5.2, such
amendments shall be void.

     

    
      	
              5.4

            	
              Investor’s
      Put Option

            

    

     

    
      	
               
      

            	
              (A)

            	
              Subject
      to clause 5.2, if the Stock Exchange requests any material amendments to
      any of the rights of the Investor in relation to an Adjustment Event, the
      Warranties or the Richwise Warranties or other Investor’s rights as set
      out under this clause 5.4, in schedule 5 and schedule 6 of this Agreement
      and clause 6 (Pre-emptions on issues of New Securities), clause 7
      (Pre-emptions on transfers of Shares), clause 8 (Tag-along), clause 9
      (Top-up acquisitions, Sale on IPO) and clause 11 (registration rights) of
      the Shareholders’ Agreement, the Investor shall be entitled to require
      each of the Selling Shareholders to purchase, on a Pro-rata Basis and on a
      several basis, all or part of the Sale Shares at a price per Share equal
      to the sum of the Initial Valuation per share plus a return that yields
      12% IRR.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      entitlement in clause 5.4(A) is exercisable by the Investor giving a
      written notice to a Selling Shareholder at any time in the period
      commencing on the day on which the Stock Exchange requests in writing any
      amendments to this Agreement which falls under the scope of clause 5.4(A)
      and ending on the 5th
      Business Day after such day. Completion of the transfer of Sale Shares
      pursuant to this clause 5.4 shall occur on the third Business Day after
      such notice is given.

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	
              5.5

            	
              IPO
      other than a Qualified IPO

            

    

     

    
      	
               
      

            	
              (A)

            	
              Section
      (ii) of the definition of “Qualified
      IPO” in clause 1.1 contains a qualification that a Qualified IPO
      can only be achieved by the Company if at the time of listing the Company
      achieves a market capitalization of US$650 million. This clause 5.5 sets
      out circumstances in which a Qualified IPO can be achieved by the Company
      with a market capitalization below US$650
  million.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      Selling Shareholders can jointly serve on the Investor a notice setting
      out the pricing of the offer shares for the proposed IPO and the possible
      non-occurrence of a Qualified IPO (the “Pricing
      Notice”) if:

            

    

     

    
      	
               
      

            	
              (1)

            	
              a
      listing is granted by a Stock Exchange;
and

            

    

     

    
      	
               
      

            	
              (2)

            	
              in
      the final determination of the offer price, the Selling Shareholders
      become aware that a market capitalization of US$650 million may not be
      achieved.

            

    

     

    
      	
               
      

            	
              (C)

            	
              After
      the Investor has been served with the Pricing Notice, the Investor shall
      be entitled to require each of the Selling Shareholders to purchase, on a
      Pro-rata Basis and on a several basis, all (but not part only) of the Sale
      Shares at a price per Share equal to the sum of the Initial Valuation per
      share plus a return that yields 12%
IRR.

            

    

     

    
      	
               
      

            	
              (D)

            	
              The
      entitlement in clause 5.5(C) is exercisable by the Investor giving a
      written notice to a Selling Shareholder no later than 48 hours from the
      time that the Pricing Notice is given (or is deemed to be given pursuant
      to clause 13.10(A)). Completion of the transfer of Sale Shares pursuant to
      this clause 5.5 shall occur on the third Business Day after such notice is
      given by the Investor.

            

    

     

    
      	
               
      

            	
              (E)

            	
              If
      the Investor does not exercise its entitlement to require the Selling
      Shareholders to purchase the Sale Shares within the period specified in
      clause 5.5(D), the Investor is deemed to have satisfied itself with the
      market capitalization qualification in section (ii) of the definition of
      “Qualified IPO” in clause 1.1
      notwithstanding a market capitalization of US$650 million may not be
      achieved, and the market capitalization qualification in the definition of
      “Qualified IPO” will be deemed to be
      satisfied.

            

    

     

    
      	
               
      

            	
              (F)

            	
              For
      the avoidance of doubt, notwithstanding the waiver by the Investor of the
      market capitalization qualification in this clause 5.5, the other
      Investor’s rights in this Agreement will not be waived as a consequence of
      such waiver.

            

    

     

    
      	
              5.6

            	
              Selling
      Shareholders’ Call Option

            

    

     

    
      	
               
      

            	
              (A)

            	
              If:

            

    

     

    
      	
               
      

            	
              (1)

            	
              the
      Stock Exchange requests any material amendments to any of the rights of
      the Investor referred to in clause
5.4;

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      Investor refuses to accept such
amendments;

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (3)

            	
              the
      Stock Exchange would not approve the proposed IPO without such amendments
      being made; and

            

    

     

    
      	
               
      

            	
              (4)

            	
              the
      Investor indicates it will not to exercise the put option set out in
      clause 5.4 or upon expiry of the period referred to in clause 5.4(B),
      during which the Investor may exercise its rights under clause
      5.4(A),

            

    

     

    each of
the Selling Shareholders shall be entitled to require the Investor to sell all
(but not part only) of the Sale Shares to each of them on a Pro-rata Basis at a
price per Share equal to the sum of the Initial Valuation per share plus a
return that yields 12% IRR.

     

    
      	
               
      

            	
              (B)

            	
              The
      entitlement in clause 5.6(A) is exercisable by a Selling Shareholder
      giving a written notice to the Investor at any time after the earlier
      of:

            

    

     

    
      	
               
      

            	
              (1)

            	
              the
      Investor indicating it will not exercise the put option set out in clause
      5.4; and

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      Business Day immediately following the expiry of the period referred to in
      clause 5.4(B) during which the Investor may exercise its rights under
      clause 5.4(A).

            

    

     

    Completion
of the transfer of Sale Shares pursuant to this clause 5.6 shall occur on the
third Business Day after such notice is given.

     

    
      	
              5.7

            	
              Approval
      of Qualified IPO

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      venue of any IPO (including a Qualified IPO) other than the Main Board of
      the Hong Kong Stock Exchange shall be subject to the Investor’s prior
      written consent.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      offering size of any IPO (including a Qualified IPO) shall be subject to
      Investor’s prior written consent if the number of newly issued Shares
      available for subscription (including new Shares to be issued pursuant to
      the exercise of the over-allotment option) would represent more than 25
      per cent. of the total number of Shares in issue following the completion
      of the IPO on a Fully Diluted
basis.

            

    

     

    
      	
              6.

            	
              Completion

            

    

     

    
      	
              6.1

            	
              Date
      and place of Completion

            

    

     

    Completion
shall take place at the offices of Simmons & Simmons in Hong Kong on the 4th
Business Day after both this Agreement and the Subscription Agreement cease to
be subject to any Conditions (as defined in the relevant agreement), other than
those Conditions which will be satisfied on Completion, or any other place or
time as agreed between the parties.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	
              6.2

            	
              Selling
      Shareholders’ obligations

            

    

     

    On
Completion the Selling Shareholders shall, subject to the due performance by the
Investor of its obligations under clause 6.3:

     

    
      	
               
      

            	
              (A)

            	
              deliver
      to the Investor:

            

    
 

    
      	
               
      

            	
              (1)

            	
              copy
      of the resolutions of the Company duly passed by the Company in general
      meeting or by written resolution approving the terms of the transactions
      contemplated and contained with this Agreement, the creation of the
      Preferred Shares and the adoption of the Completion Articles as the
      articles of association of the Company referred to in clause
      4.1(A);

            

    

     

    
      	
               
      

            	
              (2)

            	
              copy
      of the register of members of XDLong Investment as evidence for the
      completion of the reorganisation of the Group referred to in clause
      4.1(B);

            

    

     

    
      	
               
      

            	
              (3)

            	
              copies
      of documents showing all necessary and required registrations with the
      State Administration for Foreign Exchange in the PRC as required under the
      applicable laws and regulations of the PRC in respect of the relevant
      member(s) of the Group or the relevant shareholder(s) of the Company
      referred to in clause 4.1(C);

            

    

     

    
      	
               
      

            	
              (4)

            	
              original
      legal opinions addressed to the Investor issued by counsels to the Company
      in respect of the laws of the PRC, British Virgin Islands and Cayman
      Islands referred to in clause
4.1(H);

            

    

     

    
      	
               
      

            	
              (5)

            	
              instruments
      of transfer of the Sale Shares duly executed by the registered holders
      thereof in favour of the Investor together with the relative original
      share certificates; and

            

    

     

    
      	
               
      

            	
              (6)

            	
              such
      waivers or consents as the Investor may require to enable the Investor to
      be registered as holder of the Sale
Shares;

            

    

     

    
      	
               
      

            	
              (B)

            	
              procure
      the delivery of executive employment contracts with non-compete
      undertakings being entered into with the Company referred to in clause
      4.1(I), each executed by the employee named
  therein;

            

    

     

    
      	
               
      

            	
              (C)

            	
              procure
      the delivery of the Shareholders’ Agreement referred to in clause 4.1(K)
      duly executed by all the parties
thereto;

            

    

     

    
      	
               
      

            	
              (D)

            	
              procure
      board meetings of the Company to be duly held at which there shall
      be:

            

    

     

    
      	
               
      

            	
              (1)

            	
              passed
      a resolution to approve the transfers of the Sale Shares and to register,
      in the register of members, the Investor as the holder of the Shares
      concerned; and

            

    

     

    
      	
               
      

            	
              (2)

            	
              appointed
      as a Director such person as the Investor may nominate, such appointment
      to take effect immediately on Completion, if required by the
      Investor;

            

    

     

    
      	
               
      

            	
              (E)

            	
              procure
      the delivery of a copy of updated register of members of the Company
      showing the Investor’s name recorded as a shareholder of the Company as
      the sole legal and beneficial owner of the Sale Shares and the
      Subscription Shares certified by a director or authorised officer of the
      Company;

            

    

     

    
      	
               
      

            	
              (F)

            	
              procure
      the delivery of the original share certificate(s) to be issued to the
      Investors in relation to the Sale
Shares;

            

    

     

    
      	
               
      

            	
              (G)

            	
              procure
      the delivery of a copy of updated register of directors of the
      Company;

            

    

     

    
      	
               
      

            	
              (H)

            	
              procure
      the delivery of evidence that the articles of association of the PRC
      Subsidiaries have been amended as referred to under clause 4.1(P);
      and

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (I)

            	
              procure
      the delivery of the official certificates with respect to social security
      contributions by the PRC Subsidiaries as referred to under clause
      4.1(Q).

            

    

     

    
      	
              6.3

            	
              Investor’s
      obligations

            

    

     

    On
Completion the Investor shall pay the Consideration for the Sale Shares as
provided by clause 3 (before any adjustment as is mentioned in clause 3) by
telegraphic transfer to such bank accounts as shall be notified by each of the
Selling Shareholders to the Investor in writing on the letterhead of the
relevant Selling Shareholder and duly signed by such Selling Shareholder and in
the case that the Selling Shareholder is a company, signed by an authorised
representative of the Selling Shareholder, at least 3 Business Days prior to
Completion.

     

    
      	
              7.

            	
              Warranties

            

    

     

    
      	
              7.1

            	
              General

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      Founder Shareholder and the Company hereby jointly and severally represent
      and warrant to the Investor in the terms of the
  Warranties.

            

    

     

    
      	
               
      

            	
              (B)

            	
              Richwise
      and the Indemnifier jointly and severally represent and warrant to the
      Investor in terms of the Richwise Warranties
  only.

            

    

     

    
      	
               
      

            	
              (C)

            	
              The
      Warranties and the Richwise Warranties are given subject to the provisions
      of this Agreement and in particular the exclusions and limitations in
      schedule 8.

            

    

     

    
      	
              7.2

            	
              Disclosure

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      Warranties are given subject to facts and matters fairly and specifically
      disclosed in or by this Agreement and the Company Disclosure Letter, and
      the Investor shall accordingly have no claim in respect of any of the
      Warranties in relation to any fact or matter so
  disclosed.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      Richwise Warranties are given subject to facts and matters fairly and
      specifically disclosed in or by this Agreement and the Richwise Disclosure
      Letter and the Investor shall accordingly have no claim in respect of any
      of the Richwise Warranties in relation to any fact or matter so
      disclosed.

            

    

     

    
      	
              7.3

            	
              Warranties
      repeated

            

    

     

    
      	
               
      

            	
              (A)

            	
              Each
      of the Warranties is given on the date of this Agreement on the basis that
      it is true and accurate as of the date of the Agreement. Each of the
      Warranties is given on the basis that it will remain true and accurate in
      all respects up to and including Completion, and the Company and the
      Founder Shareholder undertake to forthwith disclose in writing to the
      Investor any matter or thing which may arise or become known to the
      Company and the Founder Shareholder after the date of this Agreement and
      before Completion which is inconsistent with any of the
      Warranties.

            

    

     

    
      	
               
      

            	
              (B)

            	
              Each
      of the Richwise Warranties is given on the date of this Agreement on the
      basis that it is true and accurate as of the date of the Agreement. Each
      of the Richwise Warranties is given on the basis that it will remain true
      and accurate in all respects up to and including Completion, and Richwise
      and the Indemnifier undertake to forthwith disclose in writing to the
      Investor any matter or thing which may arise or become known to Richwise
      and the Indemnifier after the date of this Agreement and before Completion
      which is inconsistent with any of the Richwise
  Warranties.

            

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
      	
              7.4

            	
              Consequences
      of breach

            

    

     

    
      	
               
      

            	
              (A)

            	
              In
      the event of it becoming apparent on or before Completion that the Company
      or the Founder Shareholder are in material breach of any of the Warranties
      or any other term of this Agreement, the Investor may at its
      option:

            

    

     

    
      	
               
      

            	
              (1)

            	
              rescind
      this Agreement by notice in writing to the other Parties;
    or

            

    

     

    
      	
               
      

            	
              (2)

            	
              proceed
      to Completion but without prejudice to their right to claim for breach of
      this Agreement or the Warranties.

            

    

     

    
      	
               
      

            	
              (B)

            	
              In
      the event of it becoming apparent on or before Completion that Richwise or
      the Indemnifier are in material breach of any of the Richwise Warranties
      or any other term of this Agreement, the Investor may at its
      option:

            

    

     

    
      	
               
      

            	
              (1)

            	
              rescind
      this Agreement by notice in writing to the other Parties;
    or

            

    

     

    
      	
               
      

            	
              (2)

            	
              proceed
      to Completion but without prejudice to their right to claim for breach of
      this Agreement or the Richwise
Warranties.

            

    

     

    
      	
              7.5

            	
              Warranties
      by Investor

            

    

     

    The
Investor warrants to each of the Selling Shareholders as follows:-

     

    
      	
               
      

            	
              (A)

            	
              the
      Investor is validly incorporated, in existence and duly registered under
      the laws of the jurisdiction of its
  incorporation;

            

    

     

    
      	
               
      

            	
              (B)

            	
              the
      Investor has the requisite power and authority to enter into and perform
      this Agreement;

            

    

     

    
      	
               
      

            	
              (C)

            	
              this
      Agreement constitutes and will, when executed, constitute binding
      obligations of the Investor in accordance with its respective
      terms;

            

    

     

    
      	
               
      

            	
              (D)

            	
              no
      order has been made and no resolution has been passed for the winding up
      of the Investor or for a provisional liquidator to be appointed in respect
      of it and no petition has been presented and no meeting has been convened
      for the purposes of winding up the
Investor;

            

    

     

    
      	
               
      

            	
              (E)

            	
              no
      administration order has been made and no petition has been presented and
      no other action for such an order has been taken in respect of the
      Investor;

            

    

     

    
      	
               
      

            	
              (F)

            	
              no
      receiver (which expression shall include an administrative receiver) has
      been appointed in respect of the
Investor;

            

    

     

    
      	
               
      

            	
              (G)

            	
              the
      Investor is not insolvent or unable to pay its debts and has not stopped
      paying its debts as they fall due;
and

            

    

     

    
      	
               
      

            	
              (H)

            	
              the
      execution and delivery of, and the performance by the Investor of its
      obligations under, this Agreement will
not:

            

    

     

    
      	
               
      

            	
              (1)

            	
              be
      or result in a breach of any provision of the memorandum or articles of
      association of the Investor;

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (2)

            	
              be
      or result in a breach of, or constitute a default under, any instrument to
      which the Investor is a party or by which the Investor is bound and which
      is material in the context of the transactions contemplated by this
      Agreement;

            

    

     

    
      	
               
      

            	
              (3)

            	
              be
      or result in a breach of any order, judgment or decree of any court or
      governmental agency to which the Investor is a party or by which the
      Investor is bound and which is material in the context of the transactions
      contemplated by this Agreement; or

            

    

     

    
      	
               
      

            	
              (4)

            	
              require
      the Investor to obtain any consent or approval of, or give any notice to
      or make any registration with, any governmental or other authority which
      has not been obtained or made at the date hereof both on an unconditional
      basis and on a basis which cannot be revoked (save pursuant to any legal
      or regulatory entitlement to revoke the same other than by reason of any
      misrepresentation or misstatement).

            

    

     

    Each of
the foregoing warranties given by the Investor (“Investor’s
Warranties”) is given on the basis that it will remain true and accurate
in all respects up to and including Completion and the Investor undertakes to
forthwith disclose in writing to the Selling Shareholders any matter or thing
which may arise or become known to the Investor after the date of this Agreement
and before Completion which is inconsistent with any of the investor’s
Warranties.

     

    
      	
              7.6

            	
              Breach
      of warranties

            

    

     

    In the
event of it becoming apparent on or before Completion that the Investor is in
material breach of any of the Investor’s Warranties or any other term of this
Agreement the Selling Shareholders may at their option either:

     

    
      	
               
      

            	
              (A)

            	
              rescind
      this Agreement by notice in writing to the Investor;
  or

            

    

     

    
      	
               
      

            	
              (B)

            	
              proceed
      to Completion but without prejudice to their right to claim for breach of
      this Agreement or the Investor’s
Warranties.

            

    

     

    
      	
              8.

            	
              Indemnification

            

    

     

    
      	
              8.1

            	
              Indemnification

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      Company and Founder Shareholder on a joint and several basis hereby agree
      to indemnify, defend and hold harmless the Investor, its Affiliates and
      their respective successors and assigns, representatives, directors,
      officers, members, partners, employees and agents (individually, an “Indemnified
      Party” and, collectively, the “Indemnified
      Parties”) from and against all and any losses, asserted against,
      imposed upon or incurred by any Indemnified Party by reason of or
      resulting from a breach of the Warranties or this Agreement by the Company
      or the Founder Shareholder (a “Company Indemnified
      Event”).

            

    

     

    
      	
               
      

            	
              (B)

            	
              Richwise
      and the Indemnifier, on a joint and several basis hereby agree to
      indemnify, defend and hold harmless the Indemnified Parties from and
      against all and any losses, asserted against, imposed upon or incurred by
      any Indemnified Party by reason of or resulting from a breach of the
      Richwise Warranties or this Agreement by Richwise (a “Richwise Indemnified
      Event”).

            

    

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
      	
              8.2

            	
              Defined
      terms

            

    

     

    For the
purposes of this clause 8:

     

    
      	
               
      

            	
              (A)

            	
              the
      Company, the Founder Shareholder, Richwise and the Indemnifier are
      referred to as the “Indemnifying
      Parties”; and

            

    

     

    
      	
               
      

            	
              (B)

            	
              a
      Company Indemnified Event and a Richwise Indemnified Event shall are
      collectively referred to as an “Indemnified
      Event”.

            

    

     

    
      	
              8.3

            	
              Indemnification
      Procedures

            

    

     

    
      	
               
      

            	
              (A)

            	
              If
      any Indemnified Party is entitled to indemnification hereunder, such
      Indemnified Party shall give notice (an “Indemnity
      Notice”) to the relevant Indemnifying Parties of any claim or of
      the commencement of any action or proceeding against such Indemnified
      Parties brought by any third party with respect to which such Indemnified
      Party seeks indemnification pursuant hereto as soon as practical following
      the time at which the Investor discovers such claim; provided, however,
      that any delay to so notify the Indemnifying Parties shall not relieve the
      Indemnifying Parties from any obligation or
  liability.

            

    

     

    
      	
               
      

            	
              (B)

            	
              Such
      Indemnifying Parties shall have the right, exercisable by giving written
      notice to an Indemnified Party within thirty (30) days after the receipt
      of an Indemnity Notice from such Indemnified Party of such claim, Action
      or Proceeding to assume, at the expense of such Indemnifying Parties, the
      defense of any such claim, action or proceeding with counsel reasonably
      satisfactory to such Indemnified
Party.

            

    

     

    
      	
               
      

            	
              (C)

            	
              The
      Indemnified Party shall have the right to control the defense or
      settlement of that portion of any claim which seeks an order, injunction
      or other equitable relief against the Indemnified Party which, if
      successful, could materially interfere with the business, operations,
      assets, financial condition or prospects of the Indemnified
      Party.

            

    

     

    
      	
               
      

            	
              (D)

            	
              After
      notice from such Indemnifying Parties to the Indemnified Party of its
      election to assume the defense of such claim, action or proceeding, none
      of such Indemnifying Parties shall be liable to the Indemnified Party for
      any legal or other expenses subsequently incurred by the Indemnified Party
      in connection with the defense thereof other than reasonable costs of
      investigation; provided that the Indemnified Party shall have the right to
      employ separate counsel to represent the Indemnified Party which may be
      subject to liability arising out of any claim in respect of which
      indemnity may be sought by the Indemnified Party against such Indemnifying
      Parties, but the fees and expenses of such counsel shall be for the
      account of such Indemnified Party unless (i) such Indemnifying Parties and
      the Indemnified Party shall have mutually agreed to the retention of such
      counsel or (ii) in the reasonable opinion of counsel to such Indemnified
      Party, representation of both parties by the same counsel would be
      inappropriate due to actual or potential conflicts of interest between
      them, it being understood, however, that such Indemnifying Parties shall
      not, in connection with any one such claim, action or proceeding but
      substantially similar or related claims, action or proceeding in the same
      jurisdiction arising out of the same general allegations or circumstances,
      be liable for the fees and expenses of more than one separate firm of
      attorneys (together with appropriate local counsel) at any time for all
      Indemnified Parties.

            

    

     

    
      	
               
      

            	
              (E)

            	
              None
      of such Indemnifying Parties shall consent to entry of any judgment or
      enter into any settlement that does not include as an unconditional term
      thereof the giving by claimant or plaintiff to such Indemnified Party or
      Parties of a release from all liability in respect of such claim, action
      or proceeding.

            

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    
      	
              9.

            	
              Selling Shareholders’
      Protection

            

    

     

    The
provisions of schedule 8 shall apply.

     

    
      	
              10.

            	
              Covenants to the
      Investor

            

    

     

    
      	
              10.1

            	
              Use
      of Company’s Name and Logo

            

    

     

    The
Company hereby grants the Investor and its Affiliates permission to use the
Company’s name and logo in its or its Affiliate’s marketing materials. The
Investor or its Affiliate, as applicable, shall include a trademark attribution
notice giving notice of the Company’s ownership of its trademarks, trade name or
brand, as applicable, in the marketing materials in which the Company’s name and
logo appear.

     

    
      	
              10.2

            	
              OFAC
      Use of Proceeds Covenant

            

    

     

    Each
Selling Shareholder hereby covenants that it will not take any action with
respect to the use of the proceeds of sale of the Sale Shares pursuant to this
Agreement that would result in a violation by any person investing or
participating in the sale of the Sale Shares of any regulation or statute
administered by the Office of Foreign Assets Control of the United States
Treasury Department (“U.S. Economic
Sanctions”), including, without limitation, using the proceeds of the
Sale Shares to fund, directly or indirectly, any business activities with, or
for the benefit of, a government, national, resident or legal entity of Cuba,
Sudan, Iran, Myanmar, or any other country with respect to which U.S. persons,
as defined in U.S. Economic Sanctions, are prohibited from doing
business.

     

    
      	
              11.

            	
              Confidentiality

            

    

     

    
      	
              11.1

            	
              Confidentiality

            

    

     

    Subject
to clause 11.2 and to clause 12, each Party:-

     

    
      	
               
      

            	
              (A)

            	
              shall
      treat as strictly confidential the provisions of this Agreement and the
      process of their negotiation and all information about the other Party
      obtained or received by it as a result of negotiating, entering into or
      performing its obligations under this Agreement (“Confidential
      Information”); and

            

    

     

    
      	
               
      

            	
              (B)

            	
              shall
      not, except with the prior written consent of each other Party (which
      shall not be unreasonably withheld or delayed), make use of (save for the
      purposes of performing its obligations under this Agreement) or disclose
      to any person any Confidential
Information.

            

    

     

    
      	
              11.2

            	
              Permitted
      disclosure or use

            

    

     

    Clause
11.1 shall not apply if and to the extent that the Party or its Affiliates
disclosing Confidential Information can demonstrate that:

     

    
      	
               
      

            	
              (A)

            	
              such
      disclosure by such Party and/or its Affiliates is required by law or is
      required or requested by any supervisory, regulatory or governmental body
      having jurisdiction over it (including but not limited to the Securities
      and Futures Commission, the Hong Kong Stock Exchange) and whether or not
      the requirement or request has the force of law;
  or

            

    

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (B)

            	
              such
      disclosure by such Party and/or its Affiliates is to its professional
      advisers in relation to the negotiation, entry into or performance of this
      Agreement or any matter arising out of the
same;

            

    

     

    
      	
               
      

            	
              (C)

            	
              in
      the case of the Investor, such disclosure is to its Affiliates and its and
      their respective directors, officers, employees, agents and advisers and
      any investor or fund manager of the
Investor;

            

    

     

    
      	
               
      

            	
              (D)

            	
              such
      disclosure is required to facilitate the Listing Process and to be made
      pursuant to clause 5.1;

            

    

     

    
      	
               
      

            	
              (E)

            	
              such
      disclosure is required and necessary for the satisfaction of any of the
      Conditions;

            

    

     

    
      	
               
      

            	
              (F)

            	
              in
      the case of a disclosure or use, the Confidential Information concerned
      was lawfully in its possession (as evidenced by written records) prior to
      its being obtained or received as described in clause 11.1(A);
      or

            

    

     

    
      	
               
      

            	
              (G)

            	
              in
      the case of a disclosure or use, the Confidential Information concerned
      has come into the public domain other than through its fault or the fault
      of any person to whom such Confidential Information has been disclosed in
      accordance with clause 11.1(B).

            

    

     

    
      	
              11.3

            	
              Continuance
      of restrictions

            

    

     

    The
restrictions contained in this clause 11 shall survive Completion and shall
continue without limit of time.

     

    
      	
              11.4

            	
              Privilege

            

    

     

    Where any
confidential information is also privileged, the waiver of such privilege is
limited to the purposes of this Agreement and does not, and is not intended to,
result in any wider waiver of the privilege. Any Party in possession of any
confidential information relating to any other Party (a “privilege holder”)
shall take all reasonable steps to protect the privilege of the privilege holder
therein and shall inform the privilege holder if any step is taken by any other
person to obtain any of its privileged confidential information.

     

    
      	
              12.

            	
              Announcements

            

    

     

    
      	
              12.1

            	
              Restrictions

            

    

     

    Subject
to clause 12.2, and whether or not any restriction contained in clause 11
applies, no Party shall make any announcement, (including, without limitation
any communication to the public or to all or any of the employees of the
Company) concerning the provisions or subject matter of this Agreement or
containing any information about any other Party without the prior written
approval of all the other Parties (which shall not be unreasonably withheld or
delayed) nor shall any Party use the name of Goldman, Sachs & Co., or any
Affiliate of the Investor without obtaining in each instance the prior written
consent of Investor.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    
      	
              12.2

            	
              Permitted
      announcements

            

    

     

    Clause
12.1 shall not apply if and to the extent that such announcement is required for
the Party and/or its Affiliates by law or by any supervisory, regulatory or
governmental body having jurisdiction over it or in connection with the Listing
Process or in the case of the Investor and/or its Affiliates to its Affiliates
and its and their respective directors, officers, employees, agents and advisers
and its investors and/or fund managers and whether or not the requirement has
the force of law and provided that any such announcement shall be made only
after consultation with the other parties.

     

    
      	
              12.3

            	
              Continuance
      of restrictions

            

    

     

    The
restrictions contained in this clause 12 shall survive Completion and shall
continue without limit of time.

     

    
      	
              13.

            	
              Provisions
      relating to this Agreement

            

    

     

    
      	
              13.1

            	
              Successors
      and assigns

            

    

     

    This
Agreement shall be binding upon and enure for the benefit of the successors of
the parties but shall not be assignable, except for an assignment by the
Investor to any of its Affiliates. Any purported assignment, except for an
assignment by the Investor to any of its Affiliates, shall be void.

     

    
      	
              13.2

            	
              Whole
      agreement

            

    

     

    This
Agreement, together with any documents referred to in it, constitutes the whole
agreement between the parties relating to its subject matter and supersedes and
extinguishes any prior drafts, agreements, and undertakings, whether in writing
or oral, relating to such subject matter.

     

    
      	
              13.3

            	
              Agreement
      survives Completion

            

    

     

    The
Warranties, the Richwise Warranties and all other provisions of this Agreement,
in so far as the same shall not have been performed at Completion, shall remain
in full force and effect notwithstanding Completion.

     

    
      	
              13.4

            	
              Rights
      cumulative and other matters

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      rights, powers, privileges and remedies provided in this Agreement are
      cumulative and are not exclusive of any rights, powers, privileges or
      remedies provided by law or
otherwise.

            

    

     

    
      	
               
      

            	
              (B)

            	
              No
      single or partial exercise of any right, power, privilege or remedy under
      this Agreement shall prevent any further or other exercise thereof or the
      exercise of any other right, power, privilege or
  remedy.

            

    

     

    
      	
              13.5

            	
              Invalidity

            

    

     

    If any
provision of this Agreement shall be held to be illegal, void, invalid or
unenforceable under the laws of any jurisdiction, the legality, validity and
enforceability of the remainder of this Agreement in that jurisdiction shall not
be affected, and the legality, validity and enforceability of the whole of this
Agreement in any other jurisdiction shall not be affected.

     

    
      	
              13.6

            	
              Severability

            

    

     

    The
provisions contained in each clause and/or sub-clause of this Agreement shall be
enforceable independently of the others and the invalidity of any one provision
shall not affect the validity of the others.

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    
      	
              13.7

            	
              Variation

            

    

     

    No
variation of this Agreement shall be binding on any Party unless and to the
extent that the same is recorded in a written agreement duly entered into by all
Parties.

     

    
      	
              13.8

            	
              Counterparts

            

    

     

    This
Agreement may be executed in any number of counterparts, which shall together
constitute one Agreement. Any Party may enter into this Agreement by signing any
such counterpart.

     

    
      	
              13.9

            	
              Costs

            

    

     

    Save as
otherwise expressly provided herein, each Party shall bear its own costs arising
out of or in connection with the preparation, negotiation and implementation of
this Agreement.

     

    
      	
              13.10

            	
              Notices

            

    

     

    
      	
               
      

            	
              (A)

            	
              Any
      notice or other communication required to be given under this Agreement or
      in connection with the matters contemplated by it shall, except where
      otherwise specifically provided, be in writing in the English language and
      shall be addressed as provided in clause 13.10(B) and may
    be:

            

    

     

    
      	
               
      

            	
              (1)

            	
              personally
      delivered, in which case it shall be deemed to have been given upon
      delivery at the relevant address;
or

            

    

     

    
      	
               
      

            	
              (2)

            	
              if
      within Hong Kong, sent by pre-paid post, in which case it shall be deemed
      to have been given two Business Days after the date of posting;
      or

            

    

     

    
      	
               
      

            	
              (3)

            	
              if
      from or to any place outside Hong Kong, sent by pre-paid airmail or by air
      courier, in which case it shall be deemed to have been given seven
      Business Days after the date of posting in the case of airmail or two
      Business Days after delivery to the courier in the case of air courier;
      or

            

    

     

    
      	
               
      

            	
              (4)

            	
              sent
      by fax, in which case it shall be deemed to have been given when
      despatched, subject to confirmation of uninterrupted transmission by a
      transmission report provided that any notice despatched by fax after 17.00
      hours (at the place where such fax is to be received) on any day shall be
      deemed to have been received at 08.00 on the next Business
      Day.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      addresses and other details of the parties referred to in clause 13.8(A)
      are, subject to clause 13.8(D):

            

    

     

    For the
Selling Shareholders:

     

    
      
        
          	 
      	
                   Name:

                	
                  Mr
      Lin Shuipan

                
	 
      	 
      	 
      
	 
      	
                   Address:

                	
                  Xidelong
      Industrial Zone

                
	 
      	 
      	
                  Wudi,
      Chendai

                
	 
      	 
      	
                  Jinjiang

                
	 
      	 
      	
                  Fujian
      Province

                
	 
      	 
      	
                  China

                
	 
      	 
      	 
      
	 
      	
                   Fax
      number:

                	
                  (86)
      595 8206 9999

                

        

      

    

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    

    
      
        
          	 
      	
                   Name:

                	
                  Richwise
      International Investment Group Ltd

                
	 
      	 
      	 
      
	 
      	
                   For
      the attention of:

                	
                  Dr
      Kenry Shi

                
	 
      	 
      	 
      
	 
      	
                   Address:

                	
                  2/F,
      Eton Tower

                
	 
      	 
      	
                  8
      Hysan Avenue

                
	 
      	 
      	
                  Causeway
      Bay

                
	 
      	 
      	
                  Hong
      Kong.

                
	 
      	 
      	 
      
	 
      	
                   Fax
      number:

                	
                  (852)
      2526 2066

                
	 
      	 
      	 
      
	 
      	
                   For
      the Investor:

                	 
      
	 
      	 
      	 
      
	 
      	
                   Name:

                	
                  Elevatech
      Limited

                
	 
      	 
      	 
      
	 
      	
                   For
      the attention of:

                	
                  Raymond
      Chow / Wendy Koh

                
	 
      	 
      	 
      
	 
      	
                   Address:

                	
                  c/o
      Goldman Sachs (Asia) L.L.C.

                
	 
      	 
      	
                  68/F,
      Cheung Kong Center

                
	 
      	 
      	
                  2
      Queen’s Road Central

                
	 
      	 
      	
                  Hong
      Kong

                
	 
      	 
      	 
      
	 
      	
                   Fax
      number:

                	
                  +852
      2233 5619

                

        

      

    

    

    
      	
               
      

            	
              (C)

            	
              In
      proving service of any notice it shall be sufficient to
    prove:

            

    

     

    
      	
               
      

            	
              (1)

            	
              in
      the case of a notice sent by post that such notice was properly addressed,
      stamped and placed in the post;

            

    

     

    
      	
               
      

            	
              (2)

            	
              in
      the case of a notice personally delivered that it was declined to or left
      at the specified address;

            

    

     

    
      	
               
      

            	
              (3)

            	
              in
      the case of a notice sent by fax that it was duly despatched to the
      specified number as confirmed by a transmission report;
  and

            

    

     

    
      	
               
      

            	
              (4)

            	
              in
      the case of a notice sent by air courier that it was delivered to a
      representative of the courier.

            

    

     

    
      	
               
      

            	
              (D)

            	
              Any
      Party may notify the other parties of any change to its address or other
      details specified in clause 13.8(B) provided that such notification shall
      only be effective on the date specified in such notice or five Business
      Days after the notice is given, whichever is
  later.

            

    

     

    
      	
              14.

            	
              Waiver

            

    

     

    
      	
              14.1

            	
              Failure
      by any Party at any time or times to require performance of any provision
      of this Agreement shall in no manner affect his right to enforce such
      provision at a later time.

            

    

     

    
      	
              14.2

            	
              No
      waiver by any Party of any condition or the breach of any term, covenant,
      representation or warranty contained in this Agreement (whether by conduct
      or otherwise) shall be deemed to be, or construed as, a further or
      continuing waiver of any such condition or breach or a waiver of any other
      condition or be deemed to be, or construed as, the breach of, or a waiver
      of, any other term, covenant, representation or warranty contained in this
      Agreement.

            

    

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    
      	
              15.

            	
              Law and
      Jurisdiction

            

    

     

    
      	
              15.1

            	
              Hong Kong
Law

            

    

     

    This
Agreement shall be governed by, and construed in accordance with, the laws of
Hong Kong.

     

    
      	
              15.2

            	
              Dispute
      Resolution

            

    

     

    
      	
               
      

            	
              (A)

            	
              Any
      dispute, controversy or claim arising out of or relating to this
      Agreement, or the breach, termination or invalidity thereof, shall be
      settled by arbitration in Hong Kong under the UNCITRAL Arbitration Rules
      in accordance with the Hong Kong International Arbitration Centre (HKIAC)
      Procedures for the Administration of International Arbitration in force at
      the date of this Agreement. The HKIAC shall be the arbitration
      commission.

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      seat of the arbitration shall be Hong Kong and the arbitration shall take
      place at the HKIAC. The appointing authority shall be the HKIAC. There
      shall be three arbitrators, one of whom shall be nominated by the
      Investor, one of whom shall be jointly nominated by the other Parties to
      the arbitration and one of whom shall be nominated by the HKIAC, who shall
      act as the chairman of the tribunal. The award shall be given by majority
      decision. If there be no majority, the award shall be made by the Chairman
      of the tribunal alone.

            

    

     

    
      	
               
      

            	
              (C)

            	
              The
      language to be used in the arbitral proceedings shall be
      English.

            

    

     

    
      	
               
      

            	
              (D)

            	
              By
      agreeing to arbitration pursuant to this clause, the parties waive
      irrevocably their right to any form of appeal, review or recourse to any
      state court of other judicial authority, insofar as such waiver may
      validly be made.

            

    

     

    
      	
               
      

            	
              (E)

            	
              Any
      Party shall have the right to seek interim injunctive relief from a court
      of competent jurisdiction, both before and after the arbitrators have been
      appointed, at any time up until the arbitrators have made their final
      award.

            

    

     

    AS WITNESS the hands
of the duly authorised representatives of the parties on the date first before
written.

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	
                                                            SIGNED
      by Mr Lin Shuipan

                                                          	
                                                            )

                                                          	
	
                                                            SIGNED
      by Dr Kenry Shi

                                                            duly
      authorised for and on

                                                            behalf
      of Richwise International

                                                            Investment
      Group Limited

                                                          	
                                                            )

                                                            )

                                                            )

                                                            )

                                                          	 
	 
      	 
      	 
      
	
                                                            SIGNED
      by Dr. Kenry Shi

                                                          	
                                                            )

                                                          	
	 
      	 
      	 
      
	
                                                            SIGNED
      by Mr Kevin Zhang

                                                            duly
      authorised for and on

                                                            behalf
      of the Elevatech Limited

                                                          	
                                                            )

                                                            )

                                                            )

                                                          	
	 	 	 
	 
      	 
      	 
      
	
                                                            SIGNED
      by Mr Lin Shuipan

                                                            duly
      authorised for and on

                                                            behalf
      of Xdlong International

                                                            Company
      Limited

                                                          	
                                                            )

                                                            )

                                                            )

                                                            )

                                                          	

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        68

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]