Document:

Series A Preferred Share Purchase Agreement dated April 27, 2006

 Exhibit 4.36 
  

 SERIES A PREFERRED SHARE PURCHASE AGREEMENT 
 by and among 
 T2CN HOLDING LIMITED

 - and - 
 GIGAMEDIA CHINA
LIMITED 
 - and - 
 THE KEY
SHAREHOLDERS LISTED ON 
 EXHIBIT A HERETO 
 dated as of 
 April 27, 2006 

 Table of Contents 
  

					
	1. AGREEMENT TO SELL AND PURCHASE SHARES	  	1
	2. PAYMENT, DELIVERY AND CLOSING	  	2
	 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY, THE PRC SUBSIDIARY AND THE EXISTING SHAREHOLDERS
	  	2
	4. REPRESENTATIONS AND WARRANTIES OF THE INVESTORS	  	11
	5. COVENANTS OF THE COMPANY AND THE KEY SHAREHOLDERS	  	13
	6. CONDITIONS TO INVESTORS’ OBLIGATIONS AT THE CLOSING	  	14
	7. MISCELLANEOUS	  	16
	EXHIBIT A:	  	Schedule of Key Shareholders	  	23
	EXHIBIT B:	  	Schedule of Subsidiaries and Affiliates	  	24
	EXHIBIT C:	  	Restated Articles	  	25
	EXHIBIT D:	  	Disclosure Schedule	  	26
	EXHIBIT E:	  	Form of Shareholders Agreement	  	34
	EXHIBIT F:	  	Notices	  	35
	EXHIBIT G:	  	Memorandum and Articles of Association of the Company	  	38

 SERIES A PREFERRED SHARE PURCHASE AGREEMENT 
 THIS SERIES A PREFERRED SHARE PURCHASE AGREEMENT (the “Agreement”) is entered into as of April 27, 2006 by and between T2CN HOLDING
LIMITED, a British Virgin Islands company (the “Company”) with its registered address at the offices of S-HR&M Financial Services Limited of Kingston Chambers, P.O. Box 173, Road Town, Tortola, British Virgin Islands, the
persons listed on Exhibit A, each a shareholder of the Company (each a “Key Shareholder” and together, the “Key Shareholders”), and GIGAMEDIA CHINA LIMITED, a British Virgin Islands company (the
“Investor”) with its office at 122 TunHwa North Road – 14/F, Taipei, Taiwan ROC. 
 RECITALS: 
 A. The Company is engaged in the Internet online gaming and other related businesses through a number of
Subsidiaries and an Affiliated Company (both as defined herein); 
 B. The Company and the Investor agree to form a strategic partnership in
the table chess, card and board casual game sector and enter into a Strategic Partnership Agreement to expand and enrich the casual game offerings to the Group Company’s user base, for the mutual benefit of the Company and the Investor; and

 C. The Company desires to issue and sell to the Investor, and the Investor desires to purchase from the Company, certain newly issued
Series A Preferred Shares, par value US$0.01 per share, of the Company (the “Series A Shares”) on the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions hereinafter set forth, the Parties hereto do agree as follows: 
 1. AGREEMENT TO SELL AND PURCHASE SHARES 
 On the basis of the representations, warranties and covenants set
forth herein, the Company hereby agrees to issue and sell to Investor, and Investor agrees to buy from the Company, 7,500,000 newly issued Series A Shares (the “Purchase Shares”) at a price of US$2.00 per share, for an aggregate purchase
price of US$15,000,000 (the “Purchase Consideration”), subject in all cases to the terms and conditions herein. 
  

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 2. PAYMENT, DELIVERY AND CLOSING 
 2.1. The Closing. The Closing of the purchase and sale of the Purchase Shares hereunder shall be held at the offices of T2CN Information Technology
(Shanghai) Co., Ltd. in Shanghai, China, on May 8, 2006, or at such other time and place as the Company and the Investor may mutually agree upon (the “Closing”). 
 2.2. Payment and Delivery. At the Closing, the Company will deliver to the Investor (a) a Series A Share Certificate of the Company
representing the Purchase Shares and (b) all certificates and other documents specified under this Agreement to be delivered at Closing; and Investor will make payment of the Purchase Consideration to the Company via wire of immediately
available funds into the bank account designated by the Company. 
 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY, THE PRC SUBSIDIARY AND THE
EXISTING SHAREHOLDERS 
 The Company and each Key Shareholder, jointly and severally, hereby represent and warrant to the Investor that, except as set
forth in the Disclosure Schedule (the “Disclosure Schedule”) attached to this Agreement as Exhibit D (which Disclosure Schedule shall be deemed to be representations and warranties to the Investor), the statements in this
Section 3 are all true, correct and complete as of this date and as of Closing. In this Agreement, any reference to a party’s “knowledge” means such party’s actual knowledge; “Group Companies” means
the Company, each Subsidiary (as defined below) and each Affiliated Company (as defined below) (each a “Group Company”). 
 3.1. Organization, Standing and Qualification. Each Group Company is duly organized, validly existing and in good standing (or equivalent status in the relevant jurisdiction) under, and by virtue of, the laws of the place of its
incorporation or establishment and has all requisite power and authority to own its properties and assets and to carry on its business as now conducted and as proposed to be conducted. Each Group Company is qualified to do business and is in good
standing (or equivalent status in the relevant jurisdiction) in each jurisdiction where failure to be so qualified would have a material adverse effect on its financial condition, business, prospects or operations, or otherwise. The Memorandum and
the Articles of Association of the Company attached as Exhibit G are true and complete, and have never been amended as of the date hereof. There is no shareholder agreement signed by shareholders of the Company that has ever been put into force
prior to the date hereof. 
 3.2. Capitalization. Immediately prior to the Closing, the share capital of the Company consists of the
following: 
 (a) Ordinary Shares. A total of 50,000,000 authorized ordinary shares, par value US$0.01 per share, of the Company (the
“Ordinary Shares”), of which 31,928,001 shares are issued and outstanding. The Company has not authorized or issued any classes of shares other than the Ordinary Shares. 
  

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 (b) Preferred Shares. A total of 7,500,000 to-be authorized Preferred Shares, all of which are
designated as Series A Shares, none of which are issued and outstanding, having the rights, preferences, privileges and restrictions as set forth in the Amended and Restated Memorandum and Articles of Association of the Company (the
“Restated Articles”). 
 (c) Total Number of Shares. Upon the Closing, the Company will have a total of 57,500,000
authorized shares, with 50,000,000 Ordinary Shares and 7,500,000 Preferred Shares respectively. 
 (c) Options, Warrants, Reserved
Shares. The Company has reserved 7,500,000 Ordinary Shares for issuance upon the conversion of the Purchase Shares (the “Conversion Shares”). Except for (i) the conversion privileges of the Purchase Shares, (ii) the
preemptive rights provided in the Shareholders Agreement to be entered into at the Closing and attached hereto as Exhibit E (the “Shareholders Agreement”), (iii) 5,500,000 Ordinary Shares reserved for issuance to
employees pursuant to the Company’s equity incentive plans approved by the Board of Directors of the Company, (iv) 3,000,000 Ordinary Shares reserved for issuance to JC Entertainment Corp. pursuant to the warrant issued by the Company to
JC Entertainment Corp, (v) up to 8,500,000 Ordinary Shares reserved for issuance to certain shareholders of Chengdu Happy Digital Information Technology Co., Ltd. (“Happy Digital”) in exchange for their equity interest in Happy
Digital pursuant to satisfactory due diligence of Happy Digital performed by the Company and pursuant to certain agreement between the Company and Happy Digital and (vi) as contemplated hereby, there are no options, warrants, conversion
privileges or other rights, or agreements with respect to the issuance thereof, presently outstanding to purchase any of the shares of the Company. 
 Apart
from the exceptions noted in this Section 3.2 and the Shareholders Agreement, no shares (including the Purchase Shares and the Conversion Shares) of the Company’s outstanding share capital, or shares issuable upon exercise or exchange of
any outstanding options or other shares issuable by the Company, are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of the Company or any other person). 
 3.3. Valid Issuance of Purchase Shares. 
 (a) The Purchase Shares, when issued, sold and delivered in accordance with the terms of this Agreement, shall be duly and validly issued, fully paid and nonassessable. The Conversion Shares have been duly and validly reserved for issuance
in accordance with this Agreement, the Shareholders Agreement and the Restated Articles and, upon issuance in accordance with their conversion terms, will be duly and validly issued, fully paid and nonassessable. 
  

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 (b) The outstanding capital shares of the Company are duly and validly issued, fully paid and
nonassessable, and such capital shares, and all outstanding shares, options and other securities of the Company have been issued in full compliance with the requirements of all applicable securities laws and regulations. 
 (c) Outstanding Security Holders. A complete list of all outstanding shareholders, option holders and other security holders of the Company as of
the date hereof is contained in Section 3.3 (c) of the Disclosure Schedule, setting forth the type and number of shares, options or other securities held by each such shareholder, option holder or other security holder. 
 3.4. Subsidiaries and Affiliates. Except for the Subsidiaries and Affiliated Companies as disclosed in Section 3.4 of Exhibit B, the
Company does not presently own or control, directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, association, or other entity. None of the Subsidiaries and the Affiliated Company has any subsidiaries, owns
or controls, directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, association or other entity and does not maintain any offices or branches or subsidiaries. 
 3.5. Due Authorization. All corporate action on the part of the Company and each Key Shareholder and, as applicable, their respective officers,
directors and shareholders necessary for the authorization, execution and delivery of, and the performance of all obligations of the Company and each Key Shareholder under, this Agreement, the Shareholders Agreement and any other agreements to which
it is a party and the execution of which is necessarily contemplated hereunder (the “Ancillary Agreements”), and the authorization, issuance, reservation for issuance and delivery of all of the Purchase Shares under this Agreement
and of the Conversion Shares issuable upon conversion of such Purchase Shares has been taken or will be taken prior to the Closing. Each of this Agreement, the Shareholders Agreement and the Ancillary Agreements is a valid and binding obligation of
the Company and each Key Shareholder enforceable in accordance with its terms, subject, as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditors’ rights generally and
to general equitable principles. 
 3.6. Compliance with Laws; Governmental Consents. Except for matters as disclosed in
Section 3.6 of Exhibit D, none of the Group Companies is in violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of
its business or the ownership of its properties; all consents, approvals, orders, authorizations or registrations, qualifications, designations, declarations or filings with any governmental authority (including but not limited to approvals,
verifications or registrations in China, if any) on the part of each Group Company and each Key Shareholder required in connection 
  

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 with the consummation of the transactions contemplated hereunder including in this Agreement, the Shareholders Agreement
and the Ancillary Agreements shall have been obtained prior to and be effective as of the Closing; each Group Company has all franchises, permits, licenses and any similar authority necessary for the conduct of its business as now being conducted by
it, the lack of which could materially and adversely affect the business, properties, prospects or financial condition of such Group Company, and such Group Company believes it can obtain, without undue burden or expense, any similar authority for
the conduct of its business as proposed to be conducted; none of the Group Companies is in default in any material respect under any of such franchises, permits, licenses or other similar authority. 
 3.7. Compliance with Other Instruments and Agreements. Each Group Company is not in, nor shall the conduct of its business as currently or
proposed to be conducted result in, any violation, breach or default of any material term of its constitutional documents of the respective Group Company which may include, as applicable, memoranda and articles of association, by-laws, joint venture
contracts, feasibility studies for the PRC Subsidiary and the like (the “Constitutional Documents”), or in any material respect of any term or provision of any mortgage, indenture, contract, agreement or instrument to which the
Group Company is a party or by which it may be bound (the “Group Company Contracts”) or of any provision of any judgment, decree, order, statute, rule or regulation applicable to or binding upon the Group Company. The execution,
delivery and performance of and compliance with this Agreement, the Shareholders Agreement and any Ancillary Agreement and the consummation of the transactions contemplated hereby and thereby will not result in any material violation, breach or
default, or be in conflict with or constitute either a default under any Group Company’s Constitutional Documents or any Group Company Contract, or, to the best knowledge of each Key Shareholder, a violation of any statutes, laws, regulations
or orders, or an event which results in the creation of any lien, charge or encumbrance upon any asset of any Group Company. 
 3.8. Title
to Properties and Assets. Each Group Company has good and marketable title to its properties and assets held in each case subject to no mortgage, pledge, lien, encumbrance, security interest or charge of any kind. With respect to the property
and assets it leases, each Group Company is in compliance with such leases and, to the best knowledge of its and each Key Shareholder, such Group Company holds legal and valid leasehold interests in such assets free of any liens, encumbrances,
security interests or claims of any party other than the lessors of such property and assets. 
 3.9. Status of Proprietary Assets.
For purpose of this Agreement, “Proprietary Assets” shall mean all patents, patent applications, trademarks, service marks, trade names, domain names, copyrights, formulas, designs, trade secrets, confidential and proprietary
information, proprietary rights, know-how and processes of a company. Each Group Company owns or has a valid right to use all the Proprietary Assets necessary for its business as now conducted and as proposed to be conducted and, to the best
knowledge of each Key Shareholder, without any conflict with or infringement of any rights of any third 
  

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 party. Section 3.9 of the Disclosure Schedule contains a complete list of Proprietary Assets of each Group Company.
There are no outstanding options, licenses or agreements of any kind granted by any Group Company relating to any of its Proprietary Assets, nor is any Group Company bound by or a party to any options, licenses or agreements of any kind with respect
to the Proprietary Assets of any other person or entity, except, in either case, for standard end-user agreements with respect to commercially readily available intellectual property such as “off the shelf” computer software. No Group
Company has received any communications alleging that it has violated or, by conducting its business as proposed, would violate any Proprietary Assets of any other person or entity, nor, to the best knowledge of each Key Shareholder, are there any
potential allegations or any reasonable basis for any actual or potential allegations. Each Group Company is not aware that any of its officers, employees or consultants is obligated under any contract (including licenses, covenants or commitments
of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would interfere with the use of his, her or its best efforts to promote the interests of such Group Company or that would
conflict with the business of such Group Company as proposed to be conducted or that would prevent such officers, employees or consultants from assigning to such Group Company any and all inventions conceived or reduced to practice in connection
with services rendered to such Group Company. Neither the execution nor delivery of this Agreement, the Shareholders Agreement and any Ancillary Agreement, nor the carrying on of the business of any Group Company by its employees, nor the conduct of
the business of any Group Company as proposed, will, to the best knowledge of each Key Shareholder, conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default under, any contract, covenant or instrument
under which any of such employees is now obligated. No Group Company needs to utilize any inventions of any of its employees (or people it currently intends to hire) made prior to or outside the scope of their employment by such Group Company for
the purpose of conducting its business or proposed business. 
 3.10. Material Contracts and Obligations. All agreements, contracts,
leases, licenses, instruments, commitments (oral or written), indebtedness, liabilities and other obligations to which each Group Company is a party or by which it is bound that (i) are material to the conduct and operations of its business and
properties, (ii) involve any of the officers, consultants, directors, employees or shareholders of the Group Company; or (iii) obligate such Group Company to share, license or develop any product or technology, are listed in
Section 3.10 of the Disclosure Schedule and have been made available for inspection by the Investor and its counsel. For purposes of this Section 3.10. “ material” shall mean (i) having an aggregate value, cost or
amount, or imposing liability or contingent liability on any Group Company, in excess of US$50,000 or that extend for more than one year beyond the date of this Agreement, (ii) not terminable upon thirty (30) days notice without incurring
any penalty or obligation, (iii) containing exclusivity, non-competition, or similar clauses that might impair, restrict or impose conditions on any Group Company’s right to offer or sell products or services in specified areas, during
specified periods, or otherwise, (iv) not in the ordinary course of business, or (v) transferring or licensing any Proprietary Assets to or from any Group Company (other than licenses from commercially readily available “off the
shelf” computer software). 
  

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 3.11. Litigation. There is no action, suit, proceeding, claim, arbitration or investigation
(“Action”) pending (or, to the best knowledge of the Company and each Key Shareholder) or currently threatened against any of the Group Companies, any Group Company’s activities, properties or assets or , to the best knowledge
of the Company and each Key Shareholder, against any officer, director or employee of each Group Company in connection with such officer’s, director’s or employee’s relationship with, or actions taken on behalf of the Company. To the
best knowledge of the Company and each Key Shareholder, there is no factual or legal basis for any such Action that is likely to result, individually or in the aggregate, in any material adverse change in the business, properties, assets, financial
condition, affairs or prospects of any Group Company. By way of example, but not by way of limitation, there are no Actions pending against any of the Group Companies or, to the best knowledge of the Company and each Key Shareholder, threatened
against any of the Group Companies, relating to the use by any employee of any Group Company of any information, technology or techniques allegedly proprietary to any of their former employers, clients or other parties. No Group Company is a party
to or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality and there is no Action by any Group Company currently pending or which it intends to initiate. 
 3.12. Disclosure. Each of the Company and Key Shareholders has, in good faith, fully provided the Investor with all the information that the
Investor has reasonably requested for deciding whether to purchase the Purchase Shares and all information that the Company believes is reasonably necessary to enable the Investor to make such decision. No representation or warranty by the Company
or any Key Shareholder in this Agreement and no information or materials provided by the Company, the PRC Subsidiary or any Key Shareholder to the Investors in connection with the negotiation or execution of this Agreement contains any untrue
statement of a material fact or intentionally omits to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances in which they are made, not misleading. 
 3.13. Registration Rights. Except as provided in the Shareholders Agreement, the Company has not granted or agreed to grant any person or entity
any registration rights (including piggyback registration rights), nor is the Company obliged to list any of its shares on any securities exchange. To the best knowledge of the Company, except as contemplated under this Agreement, the Shareholders
Agreement and the Restated Articles, no voting or similar agreements exist related to the Company’s securities which are presently outstanding or that may hereafter be issued. 
 3.14. Financial Statements. Each of the Company and Key Shareholders hereby represents and warrants that prior to the Closing, the Company shall
have delivered to the Investor the consolidated balance sheet 
  

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 and income statement (the foregoing financial statements and any notes thereto are hereinafter referred to as the
“Financial Statements” ) as of March 31, 2006 (the “Balance Sheet Date”). Such Financial Statements (a) are in accordance with the books and records of the applicable Group Company, (b) are true,
correct and complete and present fairly in all material aspects the financial condition of such Group Company at the date or dates therein indicated and the results of operations for the period or periods therein specified, and (c) have been
prepared in accordance with US generally accepted accounting principles applied on a consistent basis, except as to the unaudited consolidated financial statements, for the omission of notes thereto and normal year-end audit adjustments.
Specifically, but not by way of limitation, the respective balance sheets of the Financial Statements disclose all of the respective Group Company’s material debts, liabilities and obligations of any nature, whether due or to become due, as of
their respective dates (including, without limitation, absolute liabilities, accrued liabilities, and contingent liabilities) to the extent such debts, liabilities and obligations are required to be disclosed in accordance with the US/PRC generally
accepted accounting principles. Each Group Company has good and marketable title to all assets set forth on the balance sheets of the respective Financial Statements, except for such assets as have been spent, sold or transferred in the ordinary
course of business since their respective dates. Except as disclosed in the Financial Statements, none of the Group Companies is a guarantor or indemnitor of any indebtedness of any other person or entity. Each Group Company maintains and will
continue to maintain a standard system of accounting established and administered in accordance with generally accepted accounting principles. 
 3.15. Activities Since Balance Sheet Date. Since the Balance Sheet Date, with respect to any Group Company, there has not been: 
 (a) any material change in the assets, liabilities, financial condition or operating results of such Group Company from that reflected in the Financial Statements, except changes in the ordinary course of business that have not been, in the
aggregate, materially adverse; 
 (b) any material change in the contingent obligations of such Group Company by way of guarantee,
endorsement, indemnity, warranty or otherwise; 
 (c) any damage, destruction or loss, whether or not covered by insurance, materially and
adversely affecting the assets, properties, financial condition, operating results, prospects or business of such Group Company (as presently conducted and as presently proposed to be conducted); 
 (d) any waiver by such Group Company of a valuable right or of a material debt; 
 (e) any satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by such Group Company, except such satisfaction,
discharge or payment made in the ordinary course of business that is not material to the assets, properties, financial condition, operating results or business of such Group Company; 
  

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 (f) any material change or amendment to a material contract or arrangement by which such Group Company
or any of its assets or properties is bound or subject, except for changes or amendments which are expressly provided for or disclosed in this Agreement; 
 (g) any material change in any compensation arrangement or agreement with any present or prospective employee, contractor or director not approved by such Group Company’s Board of Directors or comparable
governing body; 
 (h) any sale, assignment or transfer of any Proprietary Assets or other material intangible assets of such Group Company
(other than in the ordinary course of business); 
 (i) any resignation or termination of any key officer or employee of such Group Company;

 (j) any mortgage, pledge, transfer of a security interest in, or lien created by such Group Company, with respect to any of its material
properties or assets, except liens for taxes not yet due or payable; 
 (k) any debt, obligation, or liability incurred, assumed or
guaranteed by such Group Company individually in excess of US$25,000 or in excess of US$50,000 in the aggregate; 
 (l) any declaration,
setting aside or payment or other distribution in respect of any of such Group Company’s share capital, or any direct or indirect redemption, purchase or other acquisition of any of such share capital by such Group Company other than the
repurchase of share capital from employees, officers, directors or consultants pursuant to agreements approved by the Board of Directors of such Group Company under which such Group Company has the option to repurchase such shares at cost upon the
occurrence of certain events, such as termination of employment or consulting relationship; 
 (m) any failure to conduct business in the
ordinary course, consistent with such Group Company’s past practices that would cause material and adverse impact on the Group Companies; 
 (n) any transactions with any of its officers, directors or employees, or any members of their immediate families, or any entity controlled by any of such individuals, which adversely affect the interests of the Group Companies; 

(o) any other event or condition of any character which would materially and adversely affect the assets, properties, financial condition, operating
results or business of such Group Company; or 
  

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 (p) any agreement or commitment by such Group Company to do any of the things described in this Section.

 3.16. Liabilities. Except for the matters as disclosed in the Section 3.16 of the Disclosure Schedule, no Group Company has any
material indebtedness or liability for borrowed money that it has directly or indirectly created, incurred, assumed, or guaranteed, or with respect to which the Group Company has otherwise become directly or indirectly liable. 
 3.17. Operational Information. Each of the Company and Key Shareholders hereby represents and warrants that all the operational information in
relation to the Company, such as average number of online players, peak online players, registered users of the casual games, etc., provided by the Company to the Investor are true, correct and complete as of the date hereof. 
 3.18. Tax Matters. The provisions for taxes in the respective Financial Statements are sufficient for the payment of all accrued and unpaid
applicable taxes of the covered Group Company, whether or not assessed or disputed as of the date of each such balance sheet. There have been no examinations or audits of any tax returns or reports by any applicable governmental agency. Each Group
Company has duly filed all tax returns required to have been filed by it and paid all taxes shown to be due on such returns. Each Group Company is not subject to any waivers of applicable statutes of limitations with respect to taxes for any year.
Since Balance Sheet Date, none of the Group Companies has incurred any taxes, assessments or governmental charges other than in the ordinary course of business and each Group Company has made adequate provisions on its books of account for all
taxes, assessments and governmental charges with respect to its business, properties and operations for such period. 
 3.19. Interested
Party Transactions. Except for transactions in the ordinary course of the business of a Group Company and as disclosed in Section 3.19 of the Disclosure Schedule, to the best knowledge of each Key Shareholder, no officer or director of a
Group Company of any such person has any material agreement, understanding, proposed transaction with, or is indebted to, any Group Company, nor is any Group Company indebted (or committed to make loans or extend or guarantee credit) to any of them
(other than for accrued salaries, reimbursable expenses or other standard employee benefits). No officer or director of a Group Company has any direct or indirect ownership interest in any firm or corporation with which a Group Company is affiliated
or with which a Group Company has a business relationship, or any firm or corporation that competes with a Group Company, except that any of the foregoing persons may have record ownership interest in the Company or own shares in publicly traded
companies that may compete with a Group Company, and no officer or director of a Group Company has had, either directly or indirectly, a material interest in: (a) any person or entity which purchases from or sells, licenses or furnishes to a
Group Company any goods, property, intellectual or other property rights or services; or (b) any contract or agreement to which a Group Company is a party or by which it may be bound or affected. 
  

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 3.20. Environmental and Safety Laws. To the best knowledge of the Company and each Key
Shareholder, none of the Group Companies is in violation of any applicable statute, law, or regulation relating to the environment or occupational health and safety and no material expenditures are or will be required in order to comply with any
such existing statute, law or regulation. 
 3.21. No Other Business. The Company was formed solely to engage in the online gaming and
related services through its PRC Subsidiaries and the Affiliated Company (“Principal Business”) and since its formation has not engaged in any other business and has not incurred any liability except in the ordinary course of its business
of acquiring and holding its equity interest in the Subsidiaries. Other than the principal businesses of the Group Company, which are the online gaming and related services, none of the Subsidiaries and the Affiliated Company has engaged in any
business. 
 3.22 Budget. The budget to be delivered prior to the Closing is prepared based on reasonable business assumptions. Based
on our current knowledge, the Company and management expect that the Company will be able to deliver operational and financial results outlined by its current budget under normal business circumstances. 
 3.23. Minute Books. The minute books of each Group Company made available to the Investor contain a complete summary of all meetings and actions
taken by directors and shareholders or owners of such Group Company since its time of formation, and reflect all transactions referred to in such minutes accurately in all material respects. 
 4. REPRESENTATIONS AND WARRANTIES OF THE INVESTOR 
 The Investor represents and warrants to the Company as follows: 
 4.1. Authorization. The Investor has
all requisite power, authority and capacity to enter into this Agreement and the Shareholders Agreement, and to perform its obligations under this Agreement and the Shareholders Agreement. This Agreement has been duly authorized, executed and
delivered by such Investor. This Agreement and the Shareholders Agreement, when executed and delivered by the Investor, will constitute valid and legally binding obligations of such Investor, subject, as to enforcement of remedies, to applicable
bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditors’ rights generally and to general equitable principles. 
 4.2. Purchase for Own Account. The Purchase Shares and the Conversion Shares will be acquired for the Investor’s own account, not as a nominee or agent, and not with a view to or in connection with the sale or distribution of
any part thereof, and the Investor does not have a present intention of selling, granting any participation in, or otherwise distributing the same. 
  

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 4.3 Investment Experience. To the best knowledge of the
Investor, the Investor (i) is an “accredited investor” as that term is defined in Rule 501(a) promulgated under the Securities Act, (ii) is an investor experienced in the evaluation of businesses similar
to the Company, (iii) is able to fend for itself in the transactions contemplated by this Agreement, the Shareholders Agreement and the Ancillary Agreements, (iv) has such knowledge and experience of financial, business and investment
matters as to be capable of evaluating the merits and risks of this investment, (v) has the ability to bear the economic risks of this investment, and (vi) was not organized or reorganized for the specific purpose of acquiring the Series A
Shares. 
 4.4 Rule 144. To its best knowledge, the Investor acknowledges that Purchase Shares and Conversion Shares must be
held indefinitely unless subsequently registered under the Securities Act or under the securities laws of the relevant jurisdiction or unless an exemption from such registration is available, and the Investor is aware of the provisions of Rule 144
promulgated under the Securities Act which permit limited public resale of shares purchased in a private placement subject to the satisfaction of certain conditions. 
 4.5 Disclosure of Information. To the best knowledge of the Investor, it is not a U.S. person, it is acquiring the Purchase Shares in an “offshore transaction” (as defined under Rule 902 of
Regulation S) and it has not offered or sold, and does not currently anticipate selling any Series A Shares, the Purchase Shares and the Conversion Shares within the United States except in accordance with Rule 904 of Regulation S under the
Securities Act and, that neither it nor any of its Affiliates has engaged in any directed selling efforts with respect to such shares. Terms used herein shall have the meanings given to them by Regulation S under the Securities Act. 
 4.6 No Public Market. To its best knowledge, the Investor understands that no public market now exists for any of the securities issued by
the Company and that the Company has made no assurances that a public market will ever exist for the Company’s securities. 
 4.7 Tax Liability. To its best knowledge, the Investor has reviewed with its own tax advisors consequences of this investment and the transactions contemplated by this Agreement, the Shareholders Agreement and the Ancillary
Agreements, and the Investor understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement and the Shareholders Agreement.

  

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 5. COVENANTS OF THE COMPANY AND THE KEY SHAREHOLDERS. 
 The Company and the Key Shareholders covenant to the Investor as follows: 
 5.1. Use of Proceeds from the Sale of Purchase Shares. The Company shall use the the entire USD 15,000,000 proceeds (less reasonable expenses) from the sale of the Purchase Shares only for product development,
strategic acquisitions and general working capital in the Principal Business. 
 5.2. Business of the Company. The business of the
Company shall be restricted to engaging in the Principal Business . 
 5.3. Business of the Subsidiaries and Affiliated Company. The
business of the Subsidiaries and the Affiliated Company shall be restricted to engaging in the online gaming and related services. 
 5.4.
Employee Vesting. The Company shall not directly or indirectly issue Ordinary Shares, share options or other forms of equity of the Company to employees, directors or consultants except in accordance with incentive equity plans approved by
the Board of Directors of the Company and relevant Shareholders and in accordance with the Shareholders Agreement and the Restated Articles. 
 5.5. Filing of Restated Articles. The Company shall file, or cause to be filed, the Restated Articles with the British Virgin Islands Registrar of Companies as soon as practicable following the Closing. 
 5.6. Increase of Registered Capital. Each of the Company and the Key Shareholders shall use its best efforts to obtain, or cause to be obtained,
the necessary PRC governmental approvals required for the increase of registered capital of the PRC Subsidiary as soon as practicable following the date of this Agreement. 
 5.7. Additional Covenants. Except as required by this Agreement, no resolution of the directors, owners, members, partners or shareholders of any
Group Company shall be passed, nor shall any contract or commitment be entered into, in each case, prior to Closing without the written consent of the Investor, except that the Group Companies may carry on its respective business in the same manner
as heretofore and may pass resolutions and enter into contracts for so long as they are effected in the ordinary course of business. 
 If at
any time before Closing, the Company or any Key Shareholder comes to know of any fact or event which: 
 (a) is in any way materially
inconsistent with any of the representations and warranties given by the Company or the Key Shareholders, and/or 
  

 13 

 (b) suggests that any fact warranted may not be as warranted or may be misleading the Company and the
Key Shareholders shall give immediate written notice thereof to the Investor, in which event the Investor may within fourteen (14) business days of receiving such notice terminate this Agreement by a written notice without any penalty
whatsoever and without prejudice to any rights that the Investor may have under this Agreement or applicable law. 
 5.8 Register of Members. The
Company shall, as soon as possible, provide the Investor with a copy of the Company’s register of members, certified by the Chairman of the Company as true and complete as of the date of the Closing, updated to show such Investor as the holder
of its respective number of Purchase Shares. 
 5.9 No Action. Prior to the Closing, neither the Company nor any Key Shareholder will take any actions
that will make any representation or warranty in Article 3 untrue, incorrect or misleading. 
 6. CONDITIONS TO INVESTORS’ OBLIGATIONS AT THE
CLOSING. 
 The obligation of the Investor to purchase the Purchase Shares at the Closing is subject to the fulfillment or the written
waiver, on or prior to the Closing, of all of the following conditions: 
 6.1. Representations and Warranties True and Correct. Any
and all the representations and warranties made by the Company and the Shareholders in Section 3 hereof shall be true and correct and complete when made, and shall be true and correct and complete as of Closing with the same force and effect as
if they had been made on and as of such date, subject to changes contemplated by this Agreement. 
 6.2. Performance of Obligations.
Each of the Company, the PRC Subsidiary and each Key Shareholder shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the
Closing. 
 6.3. Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated
hereby and all documents and instruments necessary for conducting such transactions (including relevant resolutions passed by the board of directors, shareholders’ meeting of the Company approving the share acquisition and authorizing the
execution of this Agreement and other documents that might be required by applicable law). 
  

 14 

 6.4. Approvals, Consents and Waivers. Exception for those as disclosed in Section 3.6 of the
Disclosure Schedule, each Group Company shall have obtained, any and all approvals, consents and waivers necessary for consummation of the transactions contemplated by this Agreement, including, but not limited to (i) all permits,
authorizations, approvals, verifications, consents, permits or registrations of any governmental authority or regulatory body, and (ii) the waiver by the existing shareholders of the Company of any anti-dilution rights, rights of first refusal,
preemptive rights and all similar rights in connection with the issuance of the Purchase Shares. 
 6.5. Compliance Certificate. At
the Closing, the Company shall deliver to the Investor certificates, dated the date of Closing, signed by the Company’s President or director, certifying that the conditions specified in Sections 6 have been fulfilled and stating, where
applicable, that there shall have been no material adverse change in the business, affairs, prospects, operations, properties, assets or condition of the Company and the PRC Subsidiaries since the Balance Sheet Date. 
 6.6. Securities Laws. The offer and sale of the Purchase Shares to the Investor pursuant to this Agreement shall be exempt from the registration
and/or qualification requirements of all applicable securities laws in the United States, the BVI and Singapore. 
 6.7. Amendment to
Constitutional Documents. The Restated Articles shall have been duly adopted by the Company by all necessary corporate action of its Board of Directors and its shareholders and duly filed with the British Virgin Islands Registrar of Companies.

 6.8. Execution of Shareholders Agreement. The Company shall have delivered to the Investor the Shareholders Agreement, duly
executed by the Company and all other parties thereto. 
 6.9. Employee Vesting. All of the share options of the Company issued to the
employees, directors and consultants of the Company prior to the Closing, if any, shall have been issued subject to vesting or repurchase by the Company over [three (3)] years or other reasonable period as approved by the Board of Directors.

 6.10. Confidential Information and Invention Assignment Agreements. Each key officer and employee, as designated by the Investor
and set forth in Exhibit E hereto, shall have entered into a Confidential Information and Invention Assignment Agreement. 
 6.11. Good
Standing. The Investor shall have received a certificate of good standing issued by the Registrar of Companies of the British Virgin Islands certifying that, among other things, the Company was duly constituted, paid all required fees and is in
good legal standing. 
  

 15 

 6.12. Due Diligence. The Investor shall have completed its legal, financial and business due
diligence investigation of all Group Companies to its reasonable satisfaction. 
 6.13. Board of Directors. At the Closing, the Board
of Directors of the Company shall consist of the following persons: Jim Wang, Joe Teng, Bo Feng and Tao Feng. 
 6.14. Directors of
Subsidiaries. All necessary actions shall have been taken to ensure that all the directors of each subsidiary to be appointed by the Company shall be appointed by the Board of Directors of the Company. 
 6.15. Annual Budget. The Company shall have completed and provided the Investor with a detailed annual budget satisfactory to the Investor
pursuant to the business plan provided to the Investors. 
 7. CONDITIONS TO THE COMPANY’S OBLIGATIONS AT THE CLOSING 
 The obligations of the Company to the Investor under this Agreement are subject to the fulfillment or written waiver on or before the Closing of each of
the following conditions: 
 7.1 Representations and Warranties. The representations and warranties of the Investor contained in
Section 4 shall be true and complete on the date of the Closing with the same effect as though such representations and warranties had been made on and as of the Closing. 
 7.2 The Shareholders Agreement. The Investor shall have executed and delivered the Shareholders Agreement to the Company. 
 7.3 Restated Articles. The Investor shall have executed and delivered the Shareholders Agreement to the Company. 
 7.4 Good Standing. The Investor shall deliver to the Company a certificate of good standing by the Registrar of Companies of the BVI certifying that,
among other things, the Investor was duly incorporated, paid all required fees and is in good legal standing. 
 7.5 Approvals. The receipt
of any necessary approval of this Agreement, the Shareholders Agreement and the transactions contemplated herein or therein from the Board of Directors of the Investor. 
  

 16 

 8. MISCELLANEOUS 
 8.1. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to provisions regarding choice of laws or conflict of laws. 

8.2. Survival. The representations, warranties, covenants and agreements made herein shall survive the closing. 
 8.3. Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators of the parties hereto whose rights or obligations hereunder are affected by such amendments. This Agreement and the rights and obligations therein may not be assigned by any Investor
without the written consent of the Company except to a parent corporation, a subsidiary or an affiliate. This Agreement and the rights and obligations therein may not be assigned by one party without the written consent of all other parties.

 8.4. Entire Agreement. This Agreement, the Shareholders Agreement, any Ancillary Agreements, and the schedules and exhibits hereto
and thereto, which are hereby expressly incorporated herein by this reference constitute the entire understanding and agreement between the parties with regard to the subjects hereof and thereof; provided, however, that nothing in this
Agreement or related agreements shall be deemed to terminate or supersede the provisions of any confidentiality and nondisclosure agreements executed by the parties hereto prior to the date hereof, which agreements shall continue in full force and
effect until terminated in accordance with their respective terms. 
 8.5. Notices. Except as may be otherwise provided herein, all
notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to the other party; (b) when sent by facsimile at the
number set forth in Exhibit E hereto; (c) seven (7) business days after deposit in the mail as air mail or certified mail, receipt requested, postage prepaid and addressed to the other party as set forth in Exhibit E ; or
(d) three (3) business days after deposit with an overnight delivery service, postage prepaid, addressed to the parties as set forth in Exhibit E with next business-day delivery guaranteed, provided that the sending party receives a
confirmation of delivery from the delivery service provider. 
 Each person making a communication hereunder by facsimile shall promptly
confirm by telephone to the person to whom such communication was addressed each communication made by it by facsimile pursuant hereto but the absence of such confirmation shall not affect the validity of any such communication. A party may change
or supplement the addresses given above, or designate additional addresses, for purposes of this Section 8.5 by giving, the other party written notice of the new address in the manner set forth above. 
 8.6. Amendments and Waivers. Any term of this Agreement may be amended only with the written consent of all the parties. 
  

 17 

 8.7. Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to
the Company, a Key Shareholder, or the Investor, upon any breach or default of any party hereto under this Agreement, shall impair any such right, power or remedy of the Company, the Key Shareholder, or the Investor nor shall it be construed to be a
waiver of any such breach or default, or an acquiescence therein, or of any similar breach of default thereafter occurring; nor shall any waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or
approval of any kind or character on the part of the Company, a Key Shareholder, or the Investor of any breach of default under this Agreement or any waiver on the part of the Company, a Key Shareholder, or the Investor of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, or by law or otherwise afforded to the Company, the Key Shareholders, or
the Investor shall be cumulative and not alternative. 
 8.8. Finder’s Fees. Each party (a) represents and warrants to the
other party hereto that it has retained no finder or broker in connection with the transactions contemplated by this Agreement, and (b) hereby agrees to indemnify and to hold harmless the other party hereto from and against any liability for
any commission or compensation in the nature of a finder’s fee of any broker or other person or firm (and the costs and expenses of defending against such liability or asserted liability) for which the indemnifying party or any of its employees
or representatives are responsible. 
 8.9. Interpretation; Titles and Subtitles. This Agreement shall be construed according to its
fair language. The rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement. The titles of the sections and subsections of this Agreement are for
convenience of reference only and are not to be considered in construing this Agreement. 
 8.10. Counterparts. This Agreement may be
executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 
 8.11. Severability. Should any provision of this Agreement be determined to be illegal or unenforceable, such determination shall not affect the remaining provisions of this Agreement. 
 8.12. Confidentiality and Non-Disclosure. The parties hereto agree to be bound by confidentiality and non-disclosure obligations 
 8.13. Further Assurances. Each party shall from time to time and at all times hereafter make, do, execute, or cause or procure to be made, done
and executed such further acts, deeds, conveyances, consents and assurances without further consideration, which may reasonably be required to effect the transactions contemplated by this Agreement. 
  

 18 

 8.14. Dispute Resolution. 
 (a) Negotiation Between Parties; Mediations. The parties agree to negotiate in good faith to resolve any dispute between them regarding this
Agreement. If the negotiations do not resolve the dispute to the reasonable satisfaction of all parties, then each party shall nominate a representative (who shall be a senior officer of the rank of Vice President or higher if such party is a
business entity). The parties or their representatives, as the case may be, shall, within thirty (30) days of a written request by any party to call such a meeting, meet in person and alone (except for one assistant for each party) and shall
attempt in good faith to resolve the dispute. If the disputes cannot be resolved by such representative in such meeting, the parties agree that they shall, if requested in writing by either party, meet within thirty (30) days after such written
notification for one day with an impartial mediator and consider dispute resolution alternatives other than formal arbitration. If an alternative method of dispute resolution is not agreed upon within thirty (30) days after the one day
mediation, either party may begin formal arbitration proceedings to be conducted in accordance with subsection (b) below. This procedure shall be a prerequisite before taking any additional action hereunder. 
 (b) Arbitration. In the event the parties are unable to settle a dispute between them regarding this Agreement in accordance with subsection
(a) above, such dispute shall he referred to and finally settled by arbitration at the Hong Kong International Arbitration Centre in accordance with the UNCITRAL Arbitration Rules (the “UNCITRAL Rules”) in effect, which rules
are deemed to be incorporated by reference into this subsection (b). The arbitration tribunal shall consist of one arbitrator to be appointed according to the UNCITRAL Rules. The language of the arbitration shall be English. 
 8.15 Expenses. The Company shall not oblige to pay, or reimburse the Investor until and only upon Closing, its legal expenses associated with the
transaction contemplated under this Agreement and incurred by the Investor up to US$80,000, which amount shall be deducted from the Purchase Consideration. 
 8.16. Termination. This Agreement may be terminated by any party that has not materially breached its representations, warranties or covenants hereunder on or after May 31, 2006, by written notice to the
other parties, if the Closing has not occurred on or prior to the time of such termination. Such termination under this Section 8.16 shall be without prejudice to any claims for damages or other remedies that the parties may have under this
Agreement or applicable law. 
 — REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK — 
  

 19 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date herein above first
written. 
  

			
	T2CN HOLDING LIMITED
		
	By:	 	  

	Name:	 	Jun-Tse TENG
	Title:	 	Chief Executive Officer
	
	GIGAMEDIA CHINA LIMITED
		
	By:	 	  

	Name:	 	Arthur WANG
	Title:	 	Chief Executive Officer
	
	CHENGWEI (CHINA) INVESTMENT COMPANY
		
	By:	 	  

	Name:	 	Bo FENG
	Title:	 	Authorized Representative
	
	Ji WANG 

		
	Signed:	 	  

	
	Yanqing LI

		
	Signed:	 	  

	
	Jun-Tse TENG

		
	Signed:	 	  

  

 20 

			
	William ZHU
		
	Signed:	 	  

	
	Yu-Chia LEE
		
	Signed:	 	  

	
	Weigang YE
		
	Signed:	 	  

	
	NEWMARGIN T2CN INVESTMENT LTD.
		
	By:	 	  

	Name:	 	Tao FENG
	Title:	 	Authorized Representative
	
	KINGLAND OVERSEAS DEVELOPMENT INC.
		
	By:	 	  

	Name:	 	Jun-Tse TENG
	Title:	 	Authorized Representative

  

 21 

 LIST OF EXHIBITS 
  

			
	Exhibit A        	 	Schedule of Key Shareholders
		
	Exhibit B	 	Schedule of Subsidiaries and Affiliates
		
	Exhibit C	 	Restated Articles
		
	Exhibit D	 	Disclosure Schedule
		
	Exhibit E	 	Form of Shareholders Agreement
		
	Exhibit F	 	Notices

  

 22 

 EXHIBIT A: Schedule of Key Shareholders 
  

						
	 Full Name
	  	Share
Number	  	Shareholding
Percentage	 
	 Chengwei (China) Investment Company

	  	4,774,000	  	14.95	%
	 Ji WANG

	  	1,708,200	  	5.35	%
	 Yanqing LI

	  	832,200	  	2.61	%
	 Jun-Tse TENG

	  	457,245	  	1.43	%
	 William ZHU
	  	1,000,000	  	3.13	%
	 Yu-Chia LEE
	  	300,000	  	0.94	%
	 Weigang Ye
	  	200,000	  	0.63	%
	 NEWMARGIN T2CN INVESTMENT LTD.
	  	3,035,715	  	9.51	%
	 KINGLAND OVERSEAS DEVELOPMENT INC.
	  	5,964,285	  	18.68	%

  

 23 

 EXHIBIT B: Schedule of Subsidiaries and Affiliates 
 T2CN Information Technology (Shanghai) Co., Ltd. (“T2 Information”) 
 Date of Incorporation: Nov. 22, 2004 
 Place of Incorporation: Zhangjiang High-tech Park, Shanghai 
 Corporate Form: Limited
Liability 
 Registered Capital: USD 2.5 million 
 The ownership percentage held by the Company: 100% 
 Principal Business: Design, Development, Manufacture of Computer Software; 
 Sale of Self-Products; Design, Development of Computer Hardware;
Technical 
 Consultation and Technical Service. 
 J-Town
Information Technology Co., Ltd. (“J-Town”) 
 Date of Incorporation: Oct. 11, 2005 
 Place of Incorporation: Zhangjiang High-tech Park, Shanghai 
 Corporate Form: Limited Liability 
 Registered Capital: USD 1.5 million 
 The ownership percentage held by the Company: 65%

 Principal Business: Design, Manufacture of Software; Sale of Self-Products; 
 System Integration; Technical Consultation and Technical Service; Commercial 
 Service. 
 Shanghai T2 Entertainment Co., Ltd. (“T2 Entertainment”) 
 Date of Incorporation: Oct. 8, 2004 
 Place of Incorporation: No. 88, Qinjiang Road,
Shanghai 
 Corporate Form: Limited Liability 
 Registered Capital: RMB 1 million 
 The ownership percentage held by the Company: N/A 
 Principal Business: Technical
Development, Service, Transfer, Train, etc. of 
 Computer Software and Hardware and Others. 
 T2 Information and J-Town are together referred to as the “PRC Subsidiaries” in this Agreement and each, a “PRC Subsidiary”. T2
Entertainment is referred to as the “Affiliated Company”. 
  

 24 

			
	EXHIBIT C:	 	Restated Articles
		 	(Intentionally deleted)

  

 25 

 EXHIBIT D: Disclosure Schedule 
 3.3(c) The list of existing shareholders of the Company as of the date of the Agreement: 
  

						
	 Full Name
	  	Share Number	  	Shareholding
Percentage	 
	 Chengwei (China) Investment Company

	  	4,774,000	  	14.95	%
	 Ji WANG

	  	1,708,200	  	5.35	%
	 Yanqing LI

	  	832,200	  	2.61	%
	 Bin ZHENG

	  	194,755	  	0.61	%
	 Fei ZHANG

	  	233,600	  	0.73	%
	 Jun-Tse TENG

	  	457,245	  	1.43	%
	 Zhigang Li
	  	1,000,000	  	3.13	%
	 William ZHU
	  	1,000,000	  	3.13	%
	 Ye JIN
	  	250,000	  	0.78	%
	 Yu-Chia LEE
	  	300,000	  	0.94	%
	 Weigang Ye
	  	200,000	  	0.63	%
	 NEWMARGIN T2CN INVESTMENT LTD.
	  	3,035,715	  	9.51	%
	 KINGLAND OVERSEAS DEVELOPMENT INC.
	  	5,964,285	  	18.68	%
	 THE CALNEVA FINANCIAL GROUP, LTD. BRYAN M. DEAR
	  	700,002	  	2.19	%
	 MICHELLE COTE-DEAR
	  	200,000	  	0.63	%
	 TANDOOR HOLDINGS LTD.
	  	200,000	  	0.63	%
	 JACQUELINE J. McCLURE
	  	300,000	  	0.94	%
	 KEITH LIM INC.
	  	100,000	  	0.31	%
	 D. BRUCE HORTON
	  	850,000	  	2.66	%
	 T. ROBERT HORTON
	  	150,000	  	0.47	%
	 BRADLEY N. SCHARFE
	  	850,000	  	2.66	%
	 JASON SCHARFE
	  	49,999	  	0.16	%
	 GUY PECKHAM
	  	500,000	  	1.57	%
	 BELTRING LIMITED
	  	300,000	  	0.94	%
	 THE CALNEVA FINANCIAL GROUP, LTD.
	  	282,497	  	0.88	%
	 HAMPTON ASSOCIATES LIMITED
	  	500,000	  	1.57	%
	 JETCO HOLDINGS LTD.
	  	300,000	  	0.94	%
	 RICHARD DOUGLAS STEWART
	  	100,000	  	0.31	%
	 622416 ALBERTA LTD.
	  	28,000	  	0.09	%
	 GEORGE C. ROBERTSON
	  	65,000	  	0.20	%
	 ROBERT C. BARTON
	  	100,000	  	0.31	%
	 STEVE THACKRAY
	  	10,000	  	0.03	%
	 DONALD R. MACSORLEY
	  	26,667	  	0.08	%

  

 26 

						
	 Full Name
	  	Share Number	  	Shareholding
Percentage	 
	 JAMES S. BARTON
	  	100,000	  	0.31	%
	 RONNIE STEINER TRAVEL TOURS INC.
	  	10,000	  	0.03	%
	 THE MACLACHLAN INVESTMENTS CORPORATION
	  	133,333	  	0.42	%
	 RON JONES LTD.
	  	50,000	  	0.16	%
	 JOHN MICHAEL KEEGAN
	  	15,000	  	0.05	%
	 BRUNO BENEDET JR.
	  	40,000	  	0.13	%
	 DARYL TURNER
	  	40,000	  	0.13	%
	 ELLIOTT J. LIPSEY
	  	33,333	  	0.10	%
	 ERIC K. STEWART
	  	6,666	  	0.02	%
	 VERONA CAPITAL INTERNATIONAL
	  	66,667	  	0.21	%
	 MATRIX PARTNERS, INC.
	  	133,333	  	0.42	%
	 HUGH COOPER
	  	66,667	  	0.21	%
	 LEONARD CLOUGH
	  	28,533	  	0.09	%
	 KYUNG W. LEE, TRUSTEE
	  	20,000	  	0.06	%
	 EASTSIDE PINNACLE, LLC
	  	26,667	  	0.08	%
	 MICHEAL R. MUZOS
	  	6,000	  	0.02	%
	 MARTIN S. ROOD
	  	20,000	  	0.06	%
	 MON SZETO
	  	6,000	  	0.02	%
	 KATHLEEN WRIGHT
	  	6,667	  	0.02	%
	 KATHLEEN WRIGHT ROTH IRA
	  	6,667	  	0.02	%
	 KC GLOBAL HOLDINGS INC.
	  	53,333	  	0.17	%
	 ROBERT J. CHARLETON
	  	50,000	  	0.16	%
	 DR. BRANDT MILES INC.
	  	10,000	  	0.03	%
	 R.J. LABONTE & CO. LTD.
	  	12,000	  	0.04	%
	 UNITED TRIUMP INC.
	  	53,334	  	0.17	%
	 DEAN WILLIAMS
	  	26,667	  	0.08	%
	 RICK GRIFFITHS
	  	13,333	  	0.04	%
	 JAMES PALEOLOGOS
	  	80,000	  	0.25	%
	 VALEURS MOBILIERES DEJARDINS INC. ITF ROXY AND BEAR INVESTMENT
	  	200,000	  	0.63	%
	 JEFFREY SHEAR
	  	366,667	  	1.15	%
	 MICHAEL SHEAR
	  	166,667	  	0.52	%
	 SHEAR HOLDINGS LIMITED
	  	133,334	  	0.42	%
	 BIXBIE FINANCIAL CORP.
	  	267,000	  	0.84	%
	 WALLY MARCOLIN
	  	10,000	  	0.03	%
	 BRAD SHACKMAN
	  	10,000	  	0.03	%
	 RICHARD JEFFREY
	  	10,000	  	0.03	%
	 WINTON CAPITAL HOLDINGS LTD.
	  	250,000	  	0.78	%
	 DAVID L. DREYER
	  	10,000	  	0.03	%

  

 27 

						
	 Full Name
	  	Share Number	  	Shareholding
Percentage	 
	 BRENDAN G. MURRAY
	  	10,000	  	0.03	%
	 EVAN S. HO
	  	10,000	  	0.03	%
	 GRAHAM WATSON
	  	15,000	  	0.05	%
	 DEAN ROOSDAHL
	  	15,000	  	0.05	%
	 EDWARD MITCHUK
	  	1,000	  	0.00	%
	 ROCKY J. PAOLO
	  	25,000	  	0.08	%
	 ALEXANDER WONG
	  	10,000	  	0.03	%
	 LORINDA HOYEM
	  	10,000	  	0.03	%
	 619476 B.C. LTD.
	  	15,000	  	0.05	%
	 JOHN MICHAEL KEEGAN
	  	13,334	  	0.04	%
	 Ernest S. Pounder
	  	13,334	  	0.04	%
	 Norma Vandenberg
	  	10,000	  	0.03	%
	 David Vandenberg
	  	10,000	  	0.03	%
	 Shane Pierce
	  	10,000	  	0.03	%
	 Terry Bonneschranz
	  	1,000	  	0.00	%
	 Jay Browne
	  	500	  	0.00	%
	 Steve Pippy
	  	2,200	  	0.01	%
	 Austin J. Pippy
	  	400	  	0.00	%
	 Robert Vanoverschot
	  	1,000	  	0.00	%
	 Brenda Leighton
	  	2,500	  	0.01	%
	 Harold Leighton
	  	2,500	  	0.01	%
	 Marvin D. Kristoff
	  	500	  	0.00	%
	 Caroline Farrell
	  	1,000	  	0.00	%
	 Troy Leighton
	  	1,000	  	0.00	%
	 Ryan Leighton
	  	1,000	  	0.00	%
	 Kerri Leighton
	  	1,000	  	0.00	%
	 Concettina Amante
	  	1,700	  	0.01	%
	 Rosa Marie Amante
	  	500	  	0.00	%
	 Remo Pomponio
	  	500	  	0.00	%
	 Donald S. Reitsma
	  	1,000	  	0.00	%
	 Mark Storer
	  	500	  	0.00	%
	 Barbara A. Barker
	  	1,000	  	0.00	%
	 Calvin Thompson
	  	1,500	  	0.00	%
	 Conrad Lacker
	  	1,000	  	0.00	%
	 Don Gee
	  	1,000	  	0.00	%
	 Bruce Biles
	  	10,000	  	0.03	%
	 Bruce Biles In Trust For Brodie Biles
	  	2,000	  	0.01	%
	 Gerry Caul
	  	5,000	  	0.02	%

  

 28 

						
	  
 Full Name
	  	Share Number	  	Shareholding
Percentage	 
	 Dundee Securities Corp. In Trust For Robert Sali
	  	35,000	  	0.11	%
	 Byron Hampton
	  	1,000	  	0.00	%
	 Ken Nielsen
	  	5,000	  	0.02	%
	 Abraham Christopher Fehr
	  	1,000	  	0.00	%
	 Eric T. P. Lin
	  	100,000	  	0.31	%
	 Jung-His Tan
	  	100,000	  	0.31	%
	 Pui Pui Betty Ng
	  	28,000	  	0.09	%
	 Yao Fen Angela Hung
	  	50,000	  	0.16	%
	 Jao-Juen Hung
	  	150,000	  	0.47	%
	 Seung Chong Shin
	  	100,000	  	0.31	%
	 Ya-Tsen Lin
	  	50,000	  	0.16	%
	 JC Entertainment Corp.
	  	2,000,000	  	6.26	%
	 Red Deer Development Company, Ltd.
	  	450,000	  	1.41	%
	 F3 Holding Limited
	  	400,000	  	1.25	%
	 Yu-Hui Lee
	  	50,000	  	0.16	%
	 Wan Jiayi
	  	100,000	  	0.31	%
	 Total:
	  	31,928,001	  	100	%

 The Company issued to JC Entertainment Corp. (“JCE”) a warrant which is convertible into
3,000,000 Common Shares in the Company of par value of US$0.01 each, according to a Share Subscription Agreement between the Company and JC Entertainment Corp. dated September 1, 2005. 
  

	3.4	List of PRC Subsidiaries and PRC Affiliates: 

  

			
	PRC Subsidiaries:	  	T2CN Information Technology Co., Ltd.
		  	J-Town Information Technology Co., Ltd.
		
	PRC Affiliate:	  	Shanghai T2 Entertainment Co., Ltd.

  

	3.6	Disclosures in relation to compliance with laws and governmental consents. 

 China currently restricts a foreign invested company to hold ICP license. The Company entrusts PRC natural persons to hold shares of Shanghai T2 Entertainment Co., Ltd. for the purpose of obtaining the ICP license. 
 Certain existing shareholders of the Company and/or the Affiliated Company have not completed the overseas investment registration requirements at the State
Administration of Foreign Exchange. 
 Newmargin T2CN Investment Ltd. might not have complied with approval and registration requirements with respect to its
Investment in the Group Companies and to the consummation of transactions contemplated herein. 
  

 29 

 The above disclosure shall be deemed to be made anywhere relevant in this entire
Agreement. 
  

	3.9	List of Proprietary Assets 

  

	 	(1)	T2 Information: 

 The domain names listed below are
registered in the name of T2 Information: 
 www.shenmue-online.com.cn 
 www.t2dk.com 
 www.t2cn.com 
 www.fsjoy.com 
 www.t2uu.com 
 T2 Information has licensed the domain names to T2 Entertainment for its daily operation. 
  

	 	(2)	J-Town: 

 JCE granted to J-Town the exclusive,
non-sub-licensable, non-transferable right and license to manufacture, market, promote, use, distribute, publish and sell the localized Free Style game to subscribers in the PRC. 
  

	 	(3)	T2 Entertainment: 

 The domain names listed below are
registered in the name of T2 Information: 
 www.t2qq.com 
 www.t2ns.com 
  

	3.10	List of Material Contracts 

  

	 	(1)	Share Subscription Agreement entered into among the Company, Mr. WANG Ji

, Mr. LI Yanqing

, Chengwei (China) Investment Company, Mr. ZHENG Bin

, Mr. ZHANG Fei

, Mr. TENG Jun-Tse

, Newmargin T2CN Investment Ltd, and Kingland Overseas Development Inc., dated November 4, 2004; 

  

	 	(2)	Investors’ Rights Agreement entered into among the Company, Mr. WANG Ji

, Mr. LI Yanqing

, Chengwei (China) Investment Company, Mr. ZHENG Bin

, Mr. ZHANG Fei

, 

  

 30 

 Mr. TENG Jun-Tse

, Newmargin T2CN Investment Ltd, Kingland Overseas Development Inc. and Chengwei (China) Investment Company, dated November 4, 2004; 
  

	 	(3)	Service Agreement between the Company and Mr. WANG Ji

 dated May 7, 2004; 

  

	 	(4)	Service Agreement between the Company and Mr. LI Yanqing

 dated May 7, 2004; 

  

	 	(5)	Service Agreement between the Company and Chengwei (China) Investment Company dated May 7, 2004; 

  

	 	(6)	Service Agreement between the Company and Mr. TENG Jun-Tse

 dated May 7, 2004; 

  

	 	(7)	Consulting Service Agreement entered into between the Company and TC Entertainment Corporation dated July 4, 2005; 

  

	 	(8)	Solution Development Agreement entered into between the Company and TC Entertainment Corporation dated July 11, 2005; 

  

	 	(9)	Purchase Agreement entered into between the Company and TC Entertainment Corporation dated August 4, 2005; 

  

	 	(10)	Sports Portal Development Agreement entered into between the Company and TC Entertainment Corporation dated November 1, 2005; 

  

	 	(11)	Share Subscription Agreement between the Company and JC Entertainment Corp. dated September 1, 2005; 

  

	 	(12)	Exclusive Equity Transfer Option Agreement entered into among Feng Tao, Shanghai NewMargin Ventures Capital Co., Ltd. (“Shanghai NM”), T2 Entertainment and the Company
dated November 4, 2004; 

  

	 	(13)	Voting Rights Proxy Agreement entered into among Feng Tao, Shanghai NM, T2 Entertainment and T2CN Information, dated November 4, 2004; 

  

	 	(14)	Operation Agreement entered into among Feng Tao, Shanghai NM, T2 Entertainment and T2CN Information, dated November 4, 2004; 

  

	 	(15)	Equity Pledge Agreement entered into among Feng Tao, Shanghai NM and T2CN Information dated November 4, 2004; 

  

 31 

	 	(16)	Exclusive Technical Service and Consultancy Agreement entered into between T2 Entertainment and T2CN Information, dated November 4, 2004; 

  

	 	(17)	Novation Agreement entered into among Mr. WANG Ji

. Mr. FENG Ta

, Shanghai NM, T2 Entertainment and the Company dated May 13, 2005 regarding the original Exclusive Equity Transfer Option Agreement; 

  

	 	(18)	Novation Agreement entered into among Feng Tao, WANG Ji, Shanghai NM, T2 Entertainment and T2CN Information, dated June 6, 2005 regarding the original Voting Rights Proxy
Agreement; 

  

	 	(19)	Novation Agreement entered into among Feng Tao, WANG Ji, Shanghai NM, T2 Entertainment and T2CN Information, dated June 6, 2005 regarding the original Operation Agreement;

  

	 	(20)	Novation Agreement entered into among Mr. WANG Ji

. Mr. FENG Tao

, Shanghai NM and T2CN Information regarding the original Equity Pledge Agreement dated June 6, 2005; 

  

	 	(21)	Nominee Agreement made between Mr. Feng Tao and the Company dated November 4, 2004; 

  

	 	(22)	Nominee Agreement made between Mr. Wang Ji and the Company dated May 13, 2005; 

  

	 	(23)	Equity Transfer Agreement between Newmargin HappyDigital Investment Partners Inc. (“NHIP”) and the Company regarding the transfer of the equity interest held by NHIP in
Chengdu HappyDigital Information & Technology Co., Ltd. (“HappyDigital”), dated December 23, 2005; 

  

	 	(24)	Exclusive Software License Agreement between T2 Entertainment and JCE dated August 4, 2005 regarding the online game Free Style; 

  

	 	(25)	Purchase Agreement between the Company and JCE dated August 4, 2005 on ten casual online games; 

  

	 	(26)	Derivative Merchandise Agreement between the Company and JCE dated September 14, 2005; 

  

	 	(27)	Cooperation Agreement between J-Town and T2 Entertainment regarding operation of FreeStyle, dated December 2, 2005; 

  

 32 

	 	(28)	Exclusive Software License Agreement between J-Town and JCE regarding the online game Rush Online, dated October 10, 2004; 

  

	 	(29)	Software License Agreement among Sega Corporation, JCE and T2 Entertainment on Shenmue Online, dated October 15, 2004. 

 3.16 Disclosed liabilities 
 The Company has an existing loan
of USD 500,000 borrowed from Kinland Overseas Development Ltd. 
  

	3.19	Interested Party Transaction 

  

	 	a)	As disclosed above, the Company has borrowed RMB3.5 million from Kinland Overseas Development Ltd. 

  

	 	b)	Those as disclosed in Section 3.10 above. 

  

	 	c)	Certain Group Company(ies) has certain transactions with Happy Digital. (The Company will confirm and be more specific.) 

  

 33 

 EXHIBIT E: Form of Shareholders Agreement 
  

 34 

 EXHIBIT F: Notices 
  

	1.	T2CN HOLDINGS LIMITED 

 Address: offices of S-HR&M
Financial Service Limited of Kingston Chambers. P.O. Box 173, Road Tow, Tortola, British Virgin Islands 
 Attn: Mr.TENG Jun-Tse 

Fax: 8621-54262830 
 Tel: 
  

	2.	GIGAMEDIA CHINA LIMITED 

 Address: Chamber A, 26F,
Catic Mansion, No.212 JiangNing Road JingAn District 200041 Shanghai, China 
 Attn: Hsiang-Jen Chiang 
 Fax: +86-21-32180117: 
 Tel: +86-21-52895131

  

	3.	CHENGWEI (CHINA) INVESTMENT COMPANY 

 Address:
Scotia Centre, 4th Floor, P.O.Box 2804, George Town Grand Cayman, Cayman Island 
 Attn: Feng Bo 
 Fax: 8621-62137000 
 Tel: 
  

	4.	Ji WANG

 

 Address: No.94, Dongcheng Road, Hangzhou, Zhejiang Province 
 Fax: 8621-62137000 
 Tel: 
  

 35 

	5.	Yanqing LI

 

 Address: Room 301, Weat Unit, Block 13, East Guedang District, Hangzhou, Zhejiang
Province 
 Fax: 8621-54262830 
 Tel: 
  

	8.	Jun-Tse TENG

 

 Address: Floor 5 No.88, Qingjiang Road, Shanghai, PRC 
 Fax: 8621-54262830 
 Tel: 
  

	10.	William ZHU 

 Address: 777 Huajiang Road,
No. 53 California Garden, Shanghai, P. R. China 
 Fax: 8621-54262830 
 Tel: 
  

	11.	Yu-Chia LEE 

 Address: 2F., No. 11, Lane 23,
Zhongmei 3rd St., Hualien City, Hualien County 970, Taiwan R.O.C. 
 Fax: 
 Tel: 
  

	12.	Weigang YE 

 Address: 5597 Glenoak .Ct San Jose
..CA.95129.USA 
 Fax: 8621-62137000 
 Tel: 8621-62138000 
  

 36 

	13.	NEWMARGIN T2CN INVESTMENT LTD. 

 Address:
Drake chambers, Tortola, British Virgin Islands, British Virgin Islands, 
 Attn: Mr. FengTao 
 Fax: 8621-62137000 
 Tel: 8621-62138000

  

	14.	KINGLAND OVERSEAS DEVELOPMENT INC. 

 Address:
offices of Arias, Fabrega&Fabrega Trust Co. BVI Limited of Wick hams Cay, Road Town, Tortola, British Virgin Islands 
 Attn: TENG Jun-Tse

 Fax: 86-21-54262830 
 Tel:

  

 37 

 Exhibit G Memorandum and Articles of Association of the Company 
  

 38 

 EXHIBIT G: Budget 
  

 39Shareholders' Agreement dated April 27, 2006

 Exhibit 4.37 
  

 SHAREHOLDERS’ AGREEMENT 
 by and among 
 T2CN HOLDING LIMITED 
 - and - 
 THE SHAREHOLDERS LISTED ON

 SCHEDULE 2 HERETO 
 dated as of 
 April 27, 2006 
  

  

 1 

 CONTENTS 
 Table of Contents 
  

			
	 ARTICLE I. DEFINITIONS AND INTERPRETATION
	  	5
		
	 SECTION 1.01 Definitions
	  	4
	 SECTION 1.02 Interpretation
	  	11
		
	 ARTICLE II. OBJECTIVES AND CERTAIN UNDERTAKINGS
	  	13
		
	 SECTION 2.01 Objectives of the Company
	  	13
	 SECTION 2.02 Principal Business
	  	13
		
	 ARTICLE III. DIVIDEND RIGHTS
	  	13
		
	 SECTION 3.01 Dividend Rights
	  	13
		
	 ARTICLE IV. BOARD; SHAREHOLDERS' MEETING
	  	13
		
	 SECTION 4.01 Board of Directors
	  	13
	 SECTION 4.02 Shareholders' Meeting
	  	16
		
	 ARTICLE V. PROTECTIVE PROVISIONS
	  	17
		
	 SECTION 5.01 Protective Provisions for Preferred Shareholders
	  	17
		
	 ARTICLE VI. CONVERSION RIGHTS
	  	18
		
	 SECTION 6.01 Optional Conversion
	  	18
	 SECTION 6.02 Automatic Conversion
	  	18
	 SECTION 6.03 Preferred Share Conversion Price
	  	19
	 SECTION 6.04 Fractional Shares
	  	23
	 SECTION 6.05 Reservation of Shares Issuable Upon Conversion
	  	23
	 SECTION 6.06 Notices
	  	23
	 SECTION 6.07 Payment of Taxes
	  	23
		
	 ARTICLE VII. LIQUIDATION RIGHTS
	  	23
		
	 SECTION 7.01 Liquidation Preferences
	  	23
	 SECTION 7.02 Liquidation on Sale or Merger
	  	24
		
	 ARTICLE VIII. INFORMATION AND INSPECTION RIGHTS
	  	24
		
	 SECTION 8.01 Delivery of Financial Statements to Preferred Shareholders
	  	24
	 SECTION 8.02 Financial Statements
	  	24
	 SECTION 8.03 Inspection
	  	25
		
	 ARTICLE IX. RIGHTS OF FIRST REFUSAL; CO-SALE RIGHTS AND TRANSFER RESTRICTIONS
	  	25
		
	 SECTION 9.01 General
	  	29
	 SECTION 9.02 Special Provisions in Relation to the Founders
	  	29
	 SECTION 9.03 Rights of First Refusal for Key Shareholders
	  	29
		
	 ARTICLE X REGISTRATION RIGHTS
	  	29
		
	 SECTION 10.01 Demand Registration
	  	29
	 SECTION 10.02 Piggyback Registrations
	  	31
	 SECTION 10.03 Procedures
	  	33
	 SECTION 10.04 Indemnification under Registration Rights
	  	35

  

 2 

			
	 SECTION 10.05 Additional Undertakings
	  	37
		
	 ARTICLE XI. PRE-EMPTIVE RIGHT
	  	40
		
	 SECTION 11.01 Pre-emptive Right
	  	40
		
	 ARTICLE XII. REDEMPTION RIGHT
	  	41
		
	 SECTION 12.01 Redemption Rights of Preferred A Shareholders
	  	41
		
	 ARTICLE XIII. AFFILIATED TRANSACTION
	  	41
		
	 SECTION 13.01 Affiliated Transactions
	  	41
		
	 ARTICLE XIV. Put Option
	  	42
		
	 SECTION 14.01 Put Right
	  	42
	 SECTION 14.02 Net Operating Income
	  	42
		
	 ARTICLE XV. ISSUANCE OF ADDITIONAL PREFERRED SHARES
	  	42
		
	 SECTION 15.01 Issuance of Additional Preferred Shares based on 2006 Accounts
	  	44
	 SECTION 15.02 Issuance of Additional Shares based on 2007 Accounts
	  	45
	 SECTION 15.03 Exercise of Options
	  	45
	 SECTION 15.04 Net Operating Income
	  	46
		
	 ARTICLE XVI. MISCELLANEOUS
	  	47
		
	 SECTION 16.01 Insurance
	  	47
	 SECTION 16.02 Successors and Assigns
	  	47
	 SECTION 16.03 Cumulative Rights
	  	47
	 SECTION 16.04 Entire Agreement; Amendments
	  	47
	 SECTION 16.05 Further Assurance
	  	48
	 SECTION 16.06 Severability
	  	48
	 SECTION 16.07 Non-waiver
	  	48
	 SECTION 16.08 Counterparts
	  	48
	 SECTION 16.09 Dispute Resolution; Governing Law
	  	48
	 SECTION 16.10 Effectiveness
	  	49

  

 3 

 THIS SHAREHOLDERS AGREEMENT (the “Agreement”) is made on
27th of April, 2006 
 BY AND AMONG: 
  

	1.	T2CN HOLDING LTD., a limited liability company organized and existing under the laws of the British Virgin Islands (the “Company”), 

 

	2.	The key shareholders of the Company listed on Schedule 2 hereof (“Key Shareholders”, as further defined), 

  

	3.	Certain Ordinary Shareholders of the Company who has/have signed this Agreement prior to the Closing, and 

  

	4.	GIGAMEDIA CHINA LIMITED, a limited liability company organized and existing under the laws of the British Virgin Islands (“Investor”).

 The Company, the Key Shareholders and the Investor may hereinafter, as appropriate, respectively be referred to as a
“Party” and collectively be referred to as the “Parties”. 
 WHEREAS: 

 

	(A)	The Company is a company incorporated in the British Virgin Islands and the details of the Company as at the date of this Agreement are set out in Schedule 1 hereof; and

  

	(B)	The Company, the Preferred Shareholder (as defined below) and the Ordinary Shareholders (as defined below) were parties to a share purchase agreement dated April 27th, 2006 among the same Parties hereto (the “Series A Share Purchase Agreement”), under which the Company has
agreed to issue and allot 7,500,000 Series A Preferred Shares to the Investor. 

 In consideration of the premises set forth above, the mutual
promises and covenants set forth herein and other good and valuable consideration, 
 IT IS AGREED as follows:

 ARTICLE I. DEFINITIONS AND INTERPRETATION 
 SECTION 1.01 Definitions. 
  

			
	“Additional Shares”	  	as used in Section 6.03(e) hereof, means any Shares to be issued by the Company in subsequent funding transactions, subject to restrictions as provided in Section 6.03(e);

  

 4 

			
	“Additional Preferred Shares”	  	as used in Section 6.03(e) hereof, means any Shares issued by the Company;
		
	“Additional Transfer Notice”	  	has the meaning set forth in Sub-Section 9.01(b)(iii);
		
	“Applicable Securities Law”	  	means (i) with respect to any offering of securities in the United States of America, or any other act or omission within that jurisdiction, the securities law of the United States, as amended
from time to time, including the Exchange Act and the Securities Act, and any applicable law of any state of the United States of America, and (ii) with respect to any offering of securities in any jurisdiction other than the United States of
America, or any related act or omission in that jurisdiction, the applicable laws of that jurisdiction;
		
	“Affiliate”	  	with regard to a given Person, means a Person that controls, is controlled by or is under common control with the given Person. For purposes of this Agreement, except as otherwise expressly
provided, when used with respect to any Person, “control” means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the
terms “affiliated”, “controlling and “controlled” have meanings correlative to the foregoing;
		
	“Board of Directors”	  	means the board of directors of the Company;
		
	“Business”	  	has the meaning set forth in Section 2.01;
		
	“Business Day”	  	means a day (other than a Saturday or Sunday or national holiday) on which licensed banks are generally open in the PRC for general banking business;
		
	“Closing”	  	means the Closing under the Series A Share Purchase Agreement;

  

 5 

			
	“Commission”	  	means (i) with respect to any offering of securities in the United States of America, the Securities and Exchange Commission of the United States of America or any other federal agency at the
time administering the Securities Act, and (ii) with respect to any offering of securities in a jurisdiction other than the United States of America, the regulatory body of the jurisdiction with authority to supervise and regulate the sale of
securities in that jurisdiction;
		
	“Company”	  	means T2CN Holding Limited, a company incorporated in British Virgin Islands, with its registered address at the offices of S-HR&M Financial Services Limited of Kingston Chambers, P.O. Box
173, Road Town, Tortola, BVI, and/or its subsidiaries, where applicable;
		
	“Conversion Price”	  	has the meaning set forth in Section 6.03;
		
	“Domestic Company”	  	means T2 Entertainment Co., Ltd., a company incorporated under the laws of the PRC in Shanghai, PRC;
		
	“Effective Conversion Price”	  	means, with respect to any Ordinary Share Equivalent at a given time, an amount equal to the quotient of (i) the sum of any consideration, if any, received by the Company with
respect to the issuance of such Ordinary Share Equivalent and the consideration receivable by the Company, if any, upon the exercise, exchange or conversion of the Ordinary Share Equivalent over (ii) the number of Ordinary Shares
issuable upon the exercise, conversion or exchange of the Ordinary Share Equivalent;
		
	“Equity Securities”	  	means any Ordinary Shares or Ordinary Share Equivalents;
		
	“Form F-3”	  	means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC that permits inclusion or incorporation
of substantial information by reference to other documents filed by the Company with the SEC. Form F-3, as

  

 6 

			
		  	applied in this Agreement, could be either Form F-3, if the Company is deemed a foreign private issuer under the Securities Exchange Act of 1934, as amended, or Form S-3, if the Company is
deemed a domestic issuer under such Act;
		
	“Founder”	  	means such Key Shareholders as listed on Schedule 2-1 hereof;
		
	“GAAP”	  	means generally accepted accounting principles in the United States of America;
		
	“Group”	  	means the Company and its Subsidiaries and Affiliate(s);
		
	“Happy Digital”	  	means a company established in Chengdu City with the Chinese name of 

;
		
	“HKIAC”	  	means Hong Kong International Arbitration Center;
		
	“Holder” or “Holders”	  	means any person or persons owning or have the right to acquire Registrable Securities including the Founders and the Key Shareholders.
		
	“Initiating Holder”	  	means, with respect to a request duly made under Section 10.01 or Section 10.02 to register any Registrable Securities, the Holder owning at least twenty five percent (25%) of the Registrable
Securities including any Preferred Shareholder holding more than fifty percent (50%) of the Preferred Shares on an as-converted basis initiating such request;
		
	“Issuance Notice”	  	has the meaning set forth in Section 11.01(b);
		
	“Key Shareholder”	  	has the meaning set forth in the recitals, including the Founders, the Management and other shareholders listed on Schedule 2 hereof;
		
	“Listing”	  	means the admission or quotation of the Shares (including the Shares into which any Securities may convert) to the list of a quotation system of a stock exchange;

  

 7 

			
	“Management”	  	means such management staff and the Key Shareholder of the Company as listed on Schedule 2-2 hereof;
		
	“New Securities”	  	shall mean any Equity Securities of the Company to be issued after the closing of the transactions contemplated by the Series A Share Subscription Agreement; provided the term “New
Securities” does not include (i) securities issued upon conversion of the Preferred Shares; (ii) securities issued to employees, professional consultants, officers or directors of the Company pursuant to any stock option, stock purchase or
stock bonus plan, agreement or arrangement approved by the Board of Directors; (iii) securities issued in a Qualified Public Offering; (iv) securities issued pursuant to the acquisition of another corporation by the Company by merger or by purchase,
and (v) securities issued in connection with any stock split, stock dividend or re-capitalization of the Company;
		
	“Ordinary Shareholders”	  	means any Persons registered in the Company’s register of members as the holder of Ordinary Shares (including but not limited to the Key Shareholders), and the permitted transferees and
assigns of such Person;
		
	“Ordinary Shares”	  	means the Ordinary Shares of the Company with par value of US$0.01 per share;
		
	“Ordinary Share Equivalents”	  	means warrants, options and rights exercisable for Ordinary Shares and instruments convertible or exchangeable for Ordinary Shares;
		
	“Original Issue Price”	  	means, as to Series A Preferred Shares, US$2.00 each; or the aggregate amount of issue price based on such price per share;

  

 8 

			
	“Person”	  	means any individual, person corporate, corporation, partnership, limited partnership, proprietorship, association, limited liability company, firm, trust, estate or enterprise or
entity;
		
	“PRC”	  	means the People’s Republic of China, for the purpose of this agreement, excluding the Hong Kong Special Administrative Region, the Macau Special Administrative Region and
Taiwan;
		
	“Preferred Shares”	  	means the Company’s Series A Preferred Shares with par value of US$0.01 each with the rights and privileges as set forth in the Restated Memorandum and Articles;
		
	“Preferred Shareholder”	  	means the person(s) registered in the Company’s register of members as the holder of Series A Preferred Shares, and the permitted transferees and assigns of any Preferred
Shareholder;
		
	“Qualified Public Offering”	  	means a firm commitment public offering of Ordinary Shares that has been registered under the relevant securities act and jurisdiction with gross proceeds to the Company of at least
US$40,000,000, and in which situation the price of each share shall be at least 2.4 times the purchase price of each Series A Preferred Share;
		
	“Registrable Securities”	  	means (i) the Preferred Shares, (ii) the Ordinary Shares issuable or issued upon conversion of the Preferred Shares and (iii) any other Ordinary Shares now or later held by any holder of
Ordinary Shares including the Key Shareholders;
		
	“Registration”	  	means a registration effected by preparing and filing a Registration Statement and the declaration or ordering of the effectiveness of that Registration Statement; and the terms
“Register” and “Registered” have meanings concomitant with the foregoing;

  

 9 

			
	“Registration Statement”	  	means a registration statement prepared on Form F-1, F-2 or F-3 under the Securities Act, or on any comparable form in connection with registration in a jurisdiction other than the United
States;
		
	“Remaining Shares”	  	has the meaning set forth in Section 9.01(b)(iii);
		
	“Restated Memorandum and Articles”	  	means the Restated Memorandum and Articles of Association of the Company adopted pursuant to a shareholders special resolution of the Company, the form of which is attached as Exhibit 1
hereto;
		
	“Securities”	  	means shares, equity interests, debentures, stocks, bonds, notes, units, warrants, options, derivative instruments or any other instrument of whatsoever nature which may be converted into and/or
give rise to any rights in respect of or relating to shares or any equity interest or any other interests or securities, in or of the Company (or, where applicable, the holding company of the Company);
		
	“Securities Act”	  	means the United States Securities Act of 1933, as amended;
		
	“Selling Expenses”	  	means all underwriting discounts and selling commissions applicable to the sale of Registrable Securities pursuant to this Agreement;
		
	“Share”	  	means a share or, where applicable, Share Equivalent (on as-converted basis) in the share capital of the Company (of whatever class);
		
	“Share Offered by Shareholder”	  	has the meaning set forth in Section 9.01(b);
		
	“Series A Preferred Shares”	  	series A preferred shares of par value of US$0.01 each in the capital of the Company;
		
	“Series A Share Purchase Agreement”	  	has the meaning set forth in the Recitals of this Agreement;
		
	“Shareholder”	  	means a holder of Share(s) from time to time;

  

 10 

			
		
	“Stock Option Pool”	  	means up to 5,500,000 Ordinary Shares that the Company shall reserve for the issuance of stock option to certain directors, officers, employees, consultants and/or advisors of the Company as the
Board of Directors of the Company may approve from time to time;
		
	“Subsidiaries”	  	means the subsidiaries of the Company from time to time (and each a “Subsidiary”);
		
	“Trade Sale”	  	means an event where there shall be any offer or undertaking for the sale of all or substantially all of the equity or assets of the Company;
		
	“Transfer”	  	has the meaning set forth in Section 9.01(b);
		
	“Transfer Notice”	  	has the meaning set forth in Section 9.01(b);
		
	“Transferor”	  	has the meaning set forth in Section 9.01(b);
		
	“US and United States”	  	means the United States of America;
		
	“United States Dollars and US$”	  	means the lawful currency of the US;
		
	“Violation”	  	has the meaning set forth in Section 10.04(a)(i);

 SECTION 1.02 Interpretation. For all purposes of this Agreement, except as otherwise expressly provided:

  

	 	(i)	the terms defined in this Section 1 shall have the meanings assigned to them in this Section 1 and include the plural as well as the singular; 

  

	 	(ii)	references to a Shareholder shall include references to his successors or permitted assignees; 

  

	 	(iii)	all accounting terms not otherwise defined herein have the meanings assigned under GAAP; 

  

	 	(iv)	all references in this Agreement to designated “Sections” and other subdivisions are to the designated Sections and other subdivisions of the body of this Agreement;

  

	 	(v)	pronouns of either gender or neuter shall include, as appropriate, the other pronoun forms; 

  

 11 

	 	(vi)	the words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section or
other subdivision; and 

  

	 	(vii)	all references in this Agreement to designated Schedules, Exhibits and Annexes are to the Schedules, Exhibits and Annexes attached to this Agreement unless explicitly stated
otherwise. 

  

 12 

 ARTICLE II. OBJECTIVES AND CERTAIN UNDERTAKINGS 
 SECTION 2.01 Objectives of the Company. The objectives of the Company are, to directly or indirectly engage in the Internet online gaming and other related services (the “Business”).

 SECTION 2.02 Principal Business. The principal business of the Group shall be the Business, unless it is changed in accordance with the provisions
herein. 
 ARTICLE III. DIVIDEND RIGHTS 
 SECTION 3.01
Dividend Rights. No dividend shall be paid out unless approved by an unanimous resolution by all the members of the Board of Directors. The Preferred Shareholder shall be entitled to receive, out of funds legally available therefore,
cumulative dividends accrued at the rate of 8% per share per annum prior and in preference to the Ordinary Shareholders or any other class of shareholders of the Company on an as-converted basis. Accrued dividends shall be payable in cash or,
at the election of the Preferred Shareholder, be converted into Ordinary Shares at the then effective Conversion Price for the Series A Preferred Shares. 
 ARTICLE IV BOARD; SHAREHOLDERS’ MEETING 
 SECTION 4.01 Board of Directors. (a) The number of Persons comprising the Board of
Directors shall be five (5). The authorized number of directors may not be changed except by an amendment to the Restated Memorandum and Articles. So long as at least 50% of the Preferred Shares are outstanding, the Preferred Shareholder shall be
entitled to elect one (1) director of the Board. Board quorum shall consist of three (3) directors. 
 (b) Any Board resolutions
shall require a simple majority vote of the directors present at a duly convened Board meeting, except that the following matters shall require the vote of the director appointed by the Preferred Shareholder together with the simple majority vote of
such directors: 
 (i) establishment of any subsidiary or investment in any other company except for investment in operating or developing
online Mahjong, chess and poker game; 
 (ii) making of any distribution of profits amongst the shareholders by way of dividend,
capitalization of reserves, bonus share, special distribution or otherwise; 
 (iii) Approval of any transfer of shares in the Subsidiary
and/or the Domestic Company; 
 (iv) making of any alteration or amendment to the Memorandum and/or Articles of Association of the Company,
any Subsidiary and/or the Domestic Company; 
  

 13 

 (v) appointment or settlement of the terms of appointment of the chief executive officer and chief
financial officer; 
 (vi) settlement of or alteration of the terms of any bonus or profit sharing scheme or any share option plan (including
but not limited to employee share option) or share participation schemes; 
 (vii) sale, transferring, licensing, charging, encumbering or
otherwise disposition of any trademarks, patents or other intellectual property owned by the Company, any Subsidiary and/or the Domestic Company; 
  

 14 

 (viii) formulation of the preparation plan for the Qualified Public Offering and any amendment or
modification thereof; 
 (ix) incurrence of indebtedness in any form by the Company or any of its Subsidiaries and/or the Domestic Company in
excess of US$50,000 in one transaction other than the trade debts; 
 (x) creation of, allowing to arise, or issuance of any debenture or
undertaking constituting a pledge, lien or charge (whether by way of fixed or floating charge, mortgage encumbrance or other security) on all or any of the undertaking, shares, other equity interests, assets or rights of the Company, any Subsidiary
and/or the Domestic Company, or provision of a guarantee by the Company, any Subsidiary or the Domestic Company to any third party; 
 (xi)
approval of or making of adjustments or modifications to terms of transactions involving the interest of any director, officers, employees or shareholder of the Company or any Subsidiary and/or the Domestic Company, or other insiders or any of their
family members or affiliates, including but not limited to the making of any loans or advances, whether directly or indirectly, or the provision of any guarantee, indemnity or security for or in connection with any indebtedness of liabilities of any
director or shareholder of the Company or any Subsidiary and/or the Domestic Company, other than on an arms-length basis and upon full disclosure to shareholders; 
 (xii) entering into an affiliated transaction with an Affiliate of any of Key Shareholders or management or directors of the Company, other than on an arms-length basis and upon full disclosure to the Preferred
Shareholder; 
 (xiii) change to the previously adopted accounting policies and change to the financial year of the Company or any
Subsidiary; 
 (xv) appointment or removal of the auditors of the Company or any Subsidiary and/or the Domestic Company; 
 (xvi) approval of annual financial budget and the establishment of annual milestones; 
 (xvii) commencement or settlement of any litigation or arbitration by the Company or any Subsidiary and/or the Domestic Company; 
 (xviii) any adjustment in compensation of the annual remuneration of the five (5) most highly compensated employees of the Company; 
 (xix) any change in the important corporate or financial policy or milestones of the Company or any Subsidiary and/or the Domestic Company; and

 (xx) entering into or changing any commercial arrangements between the Domestic Company and the Company, any Subsidiary, or Key
Shareholders. 
  

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 (d) The Board of Directors shall convene a meeting at least once during each quarter of a year.

 (e) When convening a meeting of the Board of Directors, a director shall be given (i) a written notice of meeting; (ii) a
meeting agenda for the meeting; and (iii) documents to be reported and distributed to the directors at the meeting, at least seven (7) Business Days before the convention of the meeting. Any meeting held without seven (7) Business
Days’ written notice having been given to all directors shall be valid if all the directors entitled to vote at the meeting waive the notice of the meeting in writing; and for this purpose, the presence of a director at a meeting shall be
deemed to constitute a waiver on his part in respect of such meeting. 
 (f) The Company shall reimburse the directors for reasonable costs
incurred in relation to attending meetings of the Board of Directors, including without limitation, travel and accommodation expenses, and other reasonable costs incurred for the benefit of the Company and deemed acceptable to the Board of
Directors. 
 (g) Any member of the Board of Directors may participate in a meeting by means of conference telephone or similar communication
equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting by such means shall constitute presence in person at such meeting. 
 (h) Any action required or permitted to be taken at any meeting of the Board of Directors may be taken without a meeting by a written resolution;
provided, however, that such resolution shall have been signed by the director appointed by the Preferred Shareholder. 
 SECTION 4.02 Shareholders’
Meeting. (a) The Board of Directors shall give no less than fourteen (14) Business Days’ notice of meetings of Shareholders to those persons whose names on the date the notice is given appear as Shareholders in the register of
members of the Company and are entitled to vote at the meeting. 
 (b) The Preferred Shareholder shall be entitled to such number of votes as
equal to the whole number of Ordinary Shares into which such Preferred Shareholder’s aggregate number of Preferred Shares are convertible immediately after the close of business on the record date of the determination of the Company’s
shareholders entitled to vote, or if no such record date is established, at the date such vote is taken or any written consent of the Company’s shareholders is first solicited. Except for the matters provided in Section 5 hereof or in the
Restated Memorandum and Articles, the Preferred Shareholder shall vote together with the holders of Ordinary Shares as if they were the same classes of shareholders, and not as a separate class or series, on all matters put before the Shareholders.

  

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 (c) The Company shall take all steps as are necessary to cause the provisions of this Section 4 and
Section 5 below to apply mutatis mutandis to the governance of any Subsidiary, including without limitation, formulating the board of directors with the same constitution, function, convention, quorum, and voting rights same as those of
the Company, without contradicting applicable laws of the jurisdiction where the Subsidiary is situated. 
 ARTICLE V. PROTECTIVE PROVISIONS

 SECTION 5.01 Protective Provisions for Preferred Shareholder. For so long as at least 50% of the Preferred Shares remain outstanding, in
addition to any other vote or consent required herein or by law, an approval by the holders of at least 50% of the Preferred Shares shall be necessary to effect the following actions: 
 (1) authorization or issuance or creation of any class of stock, or securities exchangeable for or convertible into shares of the Company, any Subsidiary
and/or the Domestic Company, provided that this Section 5.01 does not apply to the issuance of no more than 3 million new shares (which have no right, preference or priority superior to the Preferred Shares) of the Company in the second
closing within 3 months after the Closing; 
 (2) Increasing, reduction or cancellation of the authorized or issued share capital, or split
or combination of Shares of the Company, any Subsidiary and/or the Domestic Company; 
 (3) ceasing to conduct or carry on or changing
the business of the Company, any Subsidiary and/or the Domestic Company substantially as now conducted or change any part of such business activities; 
 (4) reclassification of the issued Shares or any adjustment of the preferences, privileges, powers, rights or interest or the restrictions attached to any class of Shares; 
 (5) Passing of any resolution for the winding up of the Company or any Subsidiary and/or the Domestic Company or undertaking of any merger, sale,
consolidation, reconstruction, dissolution or liquidation exercise concerning the Company, any Subsidiary and/or the Domestic Company or apply for the appointment of a receiver, manager or judicial manager or like officer; 
 (6) Sale, transfer or disposition or purchase of the whole or a substantial part of the undertaking goodwill or the assets of the Company or any
Subsidiary and/or the Domestic Company or any of intellectual property rights; and. 
 (7) Any repurchase or redemption of shares of the
Company other than pursuant to restricted share agreements with employees with redemption provisions in the Restated Memorandum and Articles, provided that this Section 5.01 does not apply to any repurchase of the shares owned by either Zhigang
Li or Yan Jin; 
  

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 ARTICLE VI. CONVERSION RIGHTS 
 The Preferred Shareholder shall have the following rights described below with respect to the conversion of the Preferred Shares into Ordinary Shares: The initial conversion ratio for Preferred Shares to Ordinary
Shares shall be 1:1, subject to adjustments of the Conversion Price as set forth in Section 6.03 below. 
 SECTION 6.01 Optional Conversion.
(a) Subject to and in compliance with the provisions of this Section 6, any Preferred Share may, at the option of the Preferred Shareholders, be converted at any time into fully-paid and non-assessable Ordinary Shares pursuant to
Section 6.01(b) below. Upon such conversion, all preference rights attached to such Preferred Shares shall be automatically terminated 
 (b) The Preferred Shareholder who desires to convert such Preferred Shares into Ordinary Shares shall surrender the certificate or certificates therefore, duly endorsed, at the office of the Company or any transfer agent for the Preferred
Shares, and shall give written notice to the Company at such office that such Preferred Shareholder has elected to convert such Preferred Shares. Such notice shall state the number of Preferred Shares being converted. Thereupon, the Company shall
promptly issue and deliver to such Preferred Shareholder at such office a certificate or certificates for the number of Ordinary Shares to which the Preferred Shareholder is entitled and shall promptly pay (i) in cash or, to the extent
sufficient funds are not then legally available therefor, in Ordinary Shares (at the fair market value of an Ordinary Share determined by the Board of Directors as of the date of such conversion), any declared and unpaid dividends on the Preferred
Share being converted and (ii) in cash (at the fair market value of an Ordinary Share determined by the Board of Directors as of the date of conversion) the value of any fractional Ordinary Shares to which the Preferred Shareholder would
otherwise be entitled. Such conversion shall be deemed to have been made at the close of business on the date of the surrender of the certificates representing the Preferred Shares to be converted, and the person entitled to receive the Ordinary
Shares issuable upon such conversion shall be treated for all purposes as the record holder of such Ordinary Shares on such date. 
 SECTION 6.02
Automatic Conversion. (a) Each Preferred Share shall automatically be converted, based on the then-effective Conversion Price, immediately upon (i) the closing of a Qualified Public Offering, or (ii) the election of the holders
of at least 50% of the outstanding Preferred Shares, pursuant to Section 6.02(b) below. 
 (b) The Company shall not be obligated to
issue certificates for any Ordinary Shares issuable upon the automatic conversion of any Preferred Shares unless the certificate or certificates evidencing such Preferred Shares is either delivered as provided below to the Company or any transfer
agent for the Preferred 
  

 18 

 Shares, or any Preferred Shareholder notifies the Company or its transfer agent that such certificate has been lost,
stolen or destroyed and executes an agreement satisfactory to the Company to indemnify the Company from any loss incurred by it in connection with such certificate. The Company shall, as soon as practicable after receipt of certificates for
Preferred Shares, or satisfactory agreement for indemnification in the case of a lost certificate, promptly issue and deliver at its office to the Preferred Shareholder thereof a certificate or certificates for the number of Ordinary Shares to which
such Preferred Shareholder is entitled and shall promptly pay (i) in cash or, to the extent sufficient funds are not then legally available therefor, in Ordinary Shares (at the fair market value for a Ordinary Share determined by the Board of
Directors as of the date of such conversion), any declared and unpaid dividends on the Preferred Share being converted and (ii) in cash (at the fair market value of an Ordinary Share determined by the Board of Directors as of the date of such
conversion) the value of any fractional Ordinary Shares to which such Preferred Shareholder would otherwise be entitled. Any person entitled to receive Ordinary Shares issuable upon the automatic conversion of the Preferred Shares shall be treated
for all purposes as the record holder of such Ordinary Shares on the date of such conversion. 
 SECTION 6.03 Preferred Share Conversion Price. The
Conversion Price for the Preferred Shares shall initially equal the Original Issue Price and shall be adjusted from time to time as provided below: 
 (a) Adjustment for Share Splits and Combinations. If the Company shall at any time, or from time to time, effect a subdivision of the outstanding Ordinary Shares, the Conversion Price in effect immediately prior to such subdivision
shall be proportionately decreased. Conversely, if the Company shall at any time, or from time to time, combine the outstanding Ordinary Shares into a smaller number of shares, the Conversion Price in effect immediately prior to the combination
shall be proportionately increased. Any adjustment under this paragraph shall become effective at the close of business on the date the subdivision or combination becomes effective. 
 (b) Adjustment for Ordinary Share Dividends and Distributions. If the Company at any time, or from time to time, makes (or fixes a record date for
the determination of holders of Ordinary Shares entitled to receive) a dividend or other distribution to the holders of Ordinary Shares payable in Ordinary Shares, in each such event the Conversion Price then in effect shall be decreased as of the
time of such issuance (or in the event such record date is fixed, as of the close of business on such record date) by multiplying the Conversion Price then in effect by a fraction (i) the numerator of which is the total number of Ordinary
Shares issued and outstanding immediately prior to the time of such issuance or the close of business on such record date, and (ii) the denominator of which is the total number of Ordinary Shares issued and outstanding immediately prior to the
time of such issuance or the close of business on such record date plus the number of Ordinary Shares issuable in payment of such dividend or distribution. 
  

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 (c) Adjustments for Other Dividends. If the Company at any time, or from time to time, makes (or
fixes a record date for the determination of holders of Ordinary Shares entitled to receive) a dividend or other distribution payable in securities of the Company other than Ordinary Shares or equivalents of Ordinary Shares, then, and in each such
event, upon conversion of any Preferred Share thereafter, the Preferred Shareholder thereof shall receive, in addition to the number of Ordinary Shares issuable thereon, the amount of securities of the Company which the Preferred Shareholder of such
share would have received had the Preferred Shares been converted into Ordinary Shares immediately prior to such event, all subject to further adjustment as provided herein. 
 (d) Reorganizations, Mergers, Consolidations, Reclassifications, Exchanges, Substitutions. If at any time, or from time to time, any capital
reorganization or reclassification of the Ordinary Shares (other than as a result of a share dividend, subdivision, split or combination otherwise treated above) occurs or the Company is consolidated, merged or reorganized with or into another
Person (other than a consolidation, merger or reorganization treated in Section 7.02), then in any such event, upon conversion of any Preferred Share thereafter, the Preferred Shareholder thereof shall receive the kind and amount of shares and
other securities and property which the Preferred Shareholder of such share would have received had the Preferred Shares been converted into Ordinary Shares on the date of such event, all subject to further adjustment as provided herein, or with
respect to such other securities or property, in accordance with any terms applicable thereto. 
 (e) Sale of Shares Below the Conversion
Price. (A) If at any time, or from time to time, the Company shall issue or sell Additional Shares (other than (i) as a subdivision or combination of Ordinary Shares provided for in Section 6.03 (a) above, (ii) as a
dividend or other distribution provided for in Section 6.03 (b) above, (iii) the issuance of Additional Shares under the Stock Option Scheme or upon the exercise of options thereof, (iv) the conversion of Preferred Shares into
Ordinary Shares, or (v) the issuance of Additional Shares in a Qualified Public Offering) for a consideration of price per share less than the then-existing Conversion Price, then, and in each such case, the Conversion Price shall be reduced,
as of the opening of business on the date of such issue or sale, to the level of the price per share for the Additional Shares newly issued or sold by the Company. 
 (B) For the purpose of making any adjustment in the Conversion Price or number of Ordinary Shares issuable upon conversion of the Preferred Shares, as provided above: 
  

	 	(i)	To the extent it consists of cash, the consideration received by the Company for any issue or sale of securities shall be computed on the gross amount basis;

  

 20 

	 	(ii)	To the extent it consists of property other than cash, consideration other than cash received by the Company for any issue or sale of securities shall be computed on the gross
amount basis at the fair market value thereof, as determined in good faith by the Board of Directors as of the date of the adoption of the resolution specifically authorizing such issue or sale, irrespective of any accounting treatment of such
property ; and (iii) If Additional Shares or Ordinary Share Equivalents exercisable, convertible or exchangeable for Additional Shares are issued or sold together with other stock or securities or other assets of the Company for consideration
which covers both, the consideration received for the Additional Shares or Ordinary Share Equivalents shall be computed as that portion of the consideration received which is reasonably determined in good faith by the Board of Directors to be
allocable to such Additional Shares or Ordinary Share Equivalents. 

 (C) For the purpose of making any adjustment in the
Conversion Price provided in this Section 6.03(e), if at any time, or from time to time, the Company issues any Ordinary Share Equivalents exercisable, convertible or exchangeable for Additional Shares and the Effective Conversion Price of such
Ordinary Share Equivalents is less than the Conversion Price in effect immediately prior to such issuance, then, in each such case, at the time of such issuance, the Company shall be deemed to have issued the maximum number of Additional Shares
issuable upon the exercise, conversion or exchange of such Ordinary Share Equivalents and to have received in consideration for each Additional Share deemed issued an amount equal to the Effective Conversion Price. 
  

	 	(i)	In the event of any increase in the number of Ordinary Shares deliverable or any reduction in consideration payable upon exercise, conversion or exchange of any Ordinary Share
Equivalents where the resulting Effective Conversion Price is less than the Conversion Price at such date, including, but not limited to, a change resulting from the anti-dilution provisions thereof, the Conversion Price, shall be re-computed to
reflect such change as if, at the time of issue for such Ordinary Share Equivalent, such Effective Conversion Price applied. 

  

	 	(ii)	If any right to exercise, convert or exchange any Ordinary Share Equivalents shall expire without having been fully exercised, the Conversion Price as adjusted upon the issuance of
such Ordinary Share Equivalents shall be readjusted to the Conversion Price which would have been in effect had such adjustment been made on the basis that (A) the only Additional Shares to be issued on such Ordinary Share Equivalents were such
Additional Shares, if any, as were actually issued or sold in the exercise, conversion or exchange of any part of such Ordinary Share Equivalents prior to the expiration thereof and (B) such Additional Shares, if any, were issued or sold for
(x) the consideration actually received by the Company upon such exercise, conversion or exchange, plus (y) where the Ordinary Share Equivalents consist of options, warrants or rights to purchase 

  

 21 

	 	  	Ordinary Shares, the consideration, if any, actually received by the Company for the grant of such Ordinary Share Equivalents, whether or not exercised, plus (z) where the
Ordinary Share Equivalents consist of shares or securities convertible or exchangeable for Ordinary Shares, the consideration received for the issue or sale of Ordinary Share Equivalent actually converted. 

  

	 	(iii)	For any Ordinary Share Equivalent with respect to which the Conversion Price has been adjusted under this Sub-Section (iii), no further adjustment of the Conversion Price shall be
made solely as a result of the actual issuance of Ordinary Shares upon the actual exercise or conversion of such Ordinary Share Equivalent. 

 (f) Certificate of Adjustment. In the case of any adjustment or readjustment of the Conversion Price, the Company, at its sole expense, shall compute such adjustment or readjustment in accordance with the
provisions hereof and prepare a certificate showing such adjustment or readjustment, and shall mail such certificate, by first class mail, postage prepaid, to each registered Preferred Shareholder at the holder’s address as shown in the
Company’s books. The certificate shall set forth such adjustment or readjustment, showing in detail the facts upon which such adjustment or readjustment is based, including a statement of (i) the consideration received or deemed to be
received by the Company for any Additional Shares issued or sold or deemed to have been issued or sold, (ii) the number of Additional Shares issued or sold or deemed to be issued or sold, (iii) particulars of share splits or combination,
if any; (iv) particulars of the dividend or other distribution to holders of Ordinary Shares, if any; (v) the Conversion Price in effect after such adjustment or readjustment, and (vi) the number of Ordinary Shares and the type and
amount, if any, of other property which would be received upon conversion of the Preferred Shares after such adjustment or readjustment. 
 (g) Notice of Record Date. In the event the Company shall propose to take any action of the type or types requiring an adjustment to the Conversion Price or the number or character of the Preferred Shares as set forth herein, the
Company shall give notice to the Preferred Shareholders, which notice shall specify the record date, if any, with respect to any such action and the date on which such action is to take place. Such notice shall also set forth such facts with respect
thereto as shall be reasonably necessary to indicate the effect of such action (to the extent such effect may be known at the date of such notice) on the Conversion Price and the number, kind or class of shares or other securities or property which
shall be deliverable upon the occurrence of such action of deliverable upon the conversion of Preferred Shares. In the case of any action which would require the fixing of a record date, such notice shall be given at least 10 days prior to the date
so fixed, and in the case of all other actions, such notice shall be given at least 15 days prior to the taking of such proposed action. 
  

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 SECTION 6.04 Fractional Shares. No fractional Ordinary Shares shall be issued upon conversion of any Preferred
Share. All Ordinary Shares (including fractions thereof) issuable upon conversion of more than one Preferred Share by a Preferred Shareholder thereof shall be aggregated for purposes of determining whether the conversion would result in the issuance
of any fractional share. If, after such aggregation, the conversion would result in the issuance of any fractional share, the Company shall, in lieu of issuing any fractional share, pay cash equal to the product of such fraction multiplied by the
fair market value of a Ordinary Share (as determined by the Board of Directors) on the date of conversion. 
 SECTION 6.05 Reservation of Shares Issuable
Upon Conversion. The Company shall at all times reserve and keep available out of its authorized but unissued Ordinary Shares, solely for the purpose of effecting the conversion of the Preferred Shares, such number of its Ordinary Shares as
shall from time to time be sufficient to effect the conversion of all outstanding Preferred Shares. If at any time the number of authorized but unissued Ordinary Shares shall not be sufficient to effect the conversion of all then outstanding
Preferred Shares, the Company will take all necessary actions to increase its authorized but unissued Ordinary Shares to such number of Shares as shall be sufficient for such purpose. 
 SECTION 6.06 Notices. Any notice required by the provisions of this Section 6 shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified,
(ii) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient; if not, then on the next business day, (iii) five days after having been sent by registered or certified mail, return receipt requested,
postage prepaid, or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All notices shall be addressed to each Preferred Shareholder of record
at the address of such Preferred Shareholder appearing on the books of the Company. 
 SECTION 6.07 Payment of Taxes. The Company will pay all taxes
(other than taxes based upon income and withholding taxes) and other governmental charges that may be imposed with respect to the issue or delivery of Ordinary Shares upon conversion of Preferred Shares, excluding any tax or other charges imposed in
connection with any transfer involved in the issuance and delivery of Ordinary Shares in a name other than that in which the Preferred Shares so converted were registered. 
 ARTICLE VII. LIQUIDATION RIGHTS 
 SECTION 7.01 Liquidation Preferences. In the event of a liquidation of the
Company, the Preferred Shareholder shall first be paid an amount equal to 1.2 times the Original Issue Price plus a compound annual interest of 15% of such amount from the date of the payment of the Original Issue Price. Thereafter, the Preferred
Shareholder on a 
  

 23 

 deemed converted basis shall be entitled to participate ratably with the holders of other shares in the residue (if any)
of such surplus assets as shall remain after paying out the capital paid up on other shares. 
 SECTION 7.02 Liquidation on Sale or Merger. The
following events shall be treated as a liquidation under this Section 7: 
  

	 	(1)	any consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, in which the shareholders of the
Company immediately prior to such consolidation, merger or reorganization, own less than 50% of the Company’s voting power immediately after such consolidation, merger or reorganization, or any transaction or series of related transactions to
which the Company is a party in which in excess of 50% of the Company’s voting power is transferred, excluding any consolidation or merger effected exclusively to change the domicile of the Company; or 

  

	 	(2)	a sale, lease or other disposition of all or substantially all of the assets of the Company; 

 and upon any such event, any proceeds resulting to the Shareholders of the Company therefrom shall be distributed in accordance with the terms of
Section 7.01. 
 ARTICLE VIII. INFORMATION AND INSPECTION RIGHTS 
 SECTION 8.01 Delivery of Financial Statements to Preferred shareholder. The Company shall deliver to the Preferred Shareholder(s): 
 (a) within 90 days after the end of each fiscal year of the Company, annual operational reports and financial statements as of the end of the fiscal year, and audited and certified by independent certified public
accountants of recognized international standing and reputation selected by the Company; 
 (b) unaudited quarterly consolidated financial
statements and the quarterly operational report within fourty five (45) days of the end of each quarter; 
 (c) unaudited monthly
consolidated financial statements within thirty (30) days of the end of each month; and 
 (d) at least forty-five (45) days prior
to the end of each fiscal year, a budget for the succeeding fiscal year, setting forth for each month during such succeeding fiscal year projected balance sheets, income statements and statements of cash flows. 
 SECTION 8.02 Financial Statements. For the purpose of this Section 8, the term “financial statements” shall be construed to include a balance
sheet, statements of income and loss and cash flows for the applicable period, prepared in accordance with US GAAP and compared against the Company’s annual operating plan and budget. 
  

 24 

 SECTION 8.03 Inspection. The Company shall permit the Preferred Shareholder, at such Preferred Shareholder’s
expense, to visit and inspect any of the properties and examine the books of account and records of the Company and its Subsidiaries and discuss the affairs, finances and accounts of the Company and its Subsidiaries with the directors, officers,
employees, accountants, legal counsel and investment bankers of the Company, all at business hours as may be requested by such Preferred Shareholder by delivering three (3) days written notice to the Company, provided that such inspection
rights shall terminate upon a Qualified Public Offering. 
 ARTICLE IX. RIGHTS OF FIRST REFUSAL; CO-SALE RIGHTS AND TRANSFER RESTRICTIONS 

SECTION 9.01 (a) Right of First Refusal for Preferred Shareholders. (i) If at any time an Ordinary Shareholder who is a Key Shareholder of the
Company (a “Transferor”) proposes to transfer Equity Securities to one or more third parties pursuant to an understanding with such third parties (a “Transfer”), then the Transferor shall give the Preferred
Shareholder and the Company written notice of the Transferor’s intention to make the Transfer (the “Transfer Notice”), which shall include (i) a description of the Equity Securities to be transferred (“Shares
Offered by Ordinary Shareholder”), (ii) the identity of the prospective transferee and (iii) the consideration and the material terms and conditions upon which the proposed Transfer is to be made. The Transfer Notice shall certify
that the Transferor has received a firm offer from the prospective transferee and in good faith believes a binding agreement for the Transfer is obtainable on the terms set forth in the Transfer Notice. The Transfer Notice shall also include a copy
of any written proposal, term sheet or letter of intent or other agreement relating to the proposed Transfer. 
  

	 	(ii)	Preferred Shareholders’ Option: 

  

	 	(1)	The Preferred Shareholder shall have an option for a period of thirty (30) days from the receipt of the Transfer Notice to elect to purchase its respective pro rata shares of
the Shares Offered by Ordinary Shareholder at the same price and subject to the same material terms and conditions as described in the Transfer Notice. 

  

	 	(2)	The Preferred Shareholder may exercise such purchase option and, thereby, purchase all or a part of its respective pro rata shares of the Shares Offered by Ordinary Shareholder, by
notifying Transferor and the Company in writing, before expiration of the thirty (30) day period as to the number of such shares which it will purchase (including any re-allotment). 

  

	 	(3)	The Preferred Shareholder shall be entitled to apportion the Shares Offered by Ordinary Shareholder to be purchased 

  

 25 

	 	  	among its partners and affiliates, provided that such Preferred Shareholder notifies the Transferor of such allocation and upon receipt of written consent of the Transferor.

  

	 	(4)	If the Preferred Shareholder gives the Transferor notice that it desires to purchase all or part of its pro rata share of the Shares Offered by Ordinary Shareholder and, as the case
may be, its re-allotment, then payment for the Shares offered by Ordinary Shareholder shall be by check or wire transfer, against delivery of the Shares Offered by Ordinary Shareholder to be purchased at a place agreed by the Parties and at the time
of the scheduled closing therefore, which shall be no later than forty-five (45) days after the Preferred Shareholders’ receipt of the Transfer Notice, unless the Transfer Notice contemplated a later closing with the prospective third
party transferee or unless the value of the purchase price has not yet been established pursuant to Section 9.01(b)(v). 

 (iii) Additional Transfer Notice from Ordinary Shareholder. If the Preferred Shareholder has declined to purchase all, or a portion of, its respective pro rata shares of the Shares Offered by Ordinary Shareholder in connection with a
proposed Transfer, the Transferor shall give the Company an “Additional Transfer Notice” which shall include all of the information and certifications required in a Transfer Notice and shall additionally identify the Shares Offered
by Ordinary Shareholder which the Preferred Shareholders have declined to purchase (the “Remaining Shares”) and briefly describe the Company’s rights of first refusal and co-sale rights with respect to the proposed Transfer.

 (iv) Company’s Option to Buy the Remaining Shares. The Company shall have an option for a period of ten (10) days from receipt
of the Additional Transfer Notice to elect to purchase the Remaining Shares at the same price and subject to the same material terms and conditions as are described in the Additional Transfer Notice. The Company may exercise such purchase option
and, thereby, purchase all or a portion of the Remaining Shares by notifying the Transferor in writing before expiration of the ten day period as to the number of such shares which it wishes to purchase. If the Company gives the Transferor notice
that it desires to purchase such shares, then payment for the Remaining Shares shall be by check or wire transfer, against delivery of the Remaining Shares to be purchased, at a place agreed by the parties and at the time of the scheduled closing
therefor, which shall be no later than sixty (60) days after the Company’s receipt of the Transfer Notice, unless the Transfer Notice contemplated a later closing with the prospective third party transferee or unless the value of the
purchase price has not yet been established pursuant to Section 9.01(b)(v). 
  

	 	(v)	Valuation of Property. 

  

	 	(1)	Should the purchase price specified in the Transfer Notice or Additional Transfer Notice be payable in property other than cash or evidences of indebtedness, the Preferred
Shareholders (or the Company) shall have the right, upon 

  

 26 

	 	  	receipt of the Transferor’s written consent, to pay the purchase price in the form of cash equal in amount to the value of such property. 

  

	 	(2)	Subject to the paragraph above, if the Transferor and the Preferred Shareholder (or the Company) cannot agree on such cash value within ten days after the Preferred
Shareholders’ receipt of the Transfer Notice (or the Company’ receipt of the Additional Transfer Notice), the valuation shall be made by an appraiser of recognized standing selected by the Transferor and the Preferred Shareholders (or the
Company) or, if they cannot agree on an appraiser within twenty (20) days after the Preferred Shareholders’ receipt of the Transfer Notice (or the Company’ receipt of the Additional Transfer Notice), each shall select an appraiser of
recognized standing and the two appraisers shall designate a third appraiser of recognized standing, whose appraisal shall be determinative of such value. 

  

	 	(3)	The cost of such appraisal shall be borne by the Preferred Shareholder (or the Company). 

  

	 	(4)	If the time for the closing of the Preferred Shareholder’s purchase or the Company’s purchase has expired but for the determination of the value of the purchase price
offered by the prospective transferee, such closing shall be held on or prior to the fifth business day after such valuation shall have been made pursuant to this sub-Section. 

 (b) Preferred Shareholder’s Right of Co-Sale. (i) To the extent the Preferred Shareholder and the Company do not exercise their
respective rights of first refusal to all of the Shares Offered by Ordinary Shareholder pursuant to Section 9.01(b), the Preferred Shareholder shall have the right to participate in such sale of Equity Securities on the same terms and
conditions as specified in the Transfer Notice. 
 (ii) The Preferred Shareholder may elect to sell up to such number of Equity Securities
equal to (on a fully converted basis) the product obtained by multiplying (i) the aggregate number of Ordinary Shares covered by the Transfer Notice (including the number of Ordinary Shares that would be issuable upon the exercise, conversion
or exchange of Ordinary Share Equivalents) by (ii) a fraction, the numerator of which is the number of Ordinary Shares (including the number of Ordinary Shares that would be issuable upon the exercise, conversion or exchange of Ordinary Share
Equivalents) owned by the Selling Preferred Shareholder on the date of the Transfer Notice and the denominator of which is the total number of Ordinary Shares (including the number of Ordinary Shares that would be issuable upon the exercise,
conversion or exchange of Ordinary Share Equivalents) owned by the selling Ordinary Shareholders and all of the Selling Preferred Shareholders on the date of the Transfer Notice. 
  

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 (iii) The Preferred Shareholder shall effect its participation in the sale by delivering to the Ordinary
Shareholders for transfer to the prospective purchaser one or more certificates, properly endorsed for transfer, which represent the type and number of Equity Securities which the Selling Preferred Shareholder elects to sell; provided, however that
if the prospective third-party purchaser objects to the delivery of Equity Securities in lieu of Ordinary Shares, the Selling Preferred Shareholder shall convert such Equity Securities into Ordinary Shares and deliver certificates corresponding to
such Ordinary Shares. The Company agrees to make any such conversion concurrent with the actual transfer of such shares to the purchaser and contingent on such transfer. 
 (iv) The share certificate or certificates that the Preferred Shareholder delivers to the Ordinary Shareholders pursuant to Section 9.01(c)(iii) shall be transferred to the prospective purchaser in consummation
of the sale of the Equity Securities pursuant to the terms and conditions specified in the Transfer Notice, and the Ordinary Shareholders shall concurrently therewith remit to the Preferred Shareholder that portion of the sale proceeds to which the
selling Preferred Shareholder is entitled by reason of its participation in such sale. 
 (v) To the extent that any prospective purchaser
prohibits the participation of the selling Preferred Shareholder exercising its co-sale rights hereunder in a proposed Transfer or otherwise refuses to purchase shares or other securities from the selling Preferred Shareholder exercising its co-sale
rights hereunder, the Transferor shall not sell to such prospective purchaser any Equity Securities unless and until, simultaneously with such sale, the Transferor shall purchase such shares or other securities from the Selling Preferred Shareholder
for the same consideration and on the same terms and conditions as the proposed transfer described in the Transfer Notice. 
 (vi) The rights
provided in this Section 9.01 shall terminate upon a Qualified Public Offering. 
 (c) Limitations to Rights of First Refusal and
Co-Sale. Notwithstanding the provisions of this Section 9.01 and this Section 9.01 shall not apply to the followings: an Ordinary Shareholder may sell or otherwise assign, with or without consideration, Equity Securities to any spouse
or member of such Ordinary Shareholder’s immediate family, or to a custodian, trustee, executor, or other fiduciary for the account of the Ordinary Shareholder’s spouse or members of the Ordinary Shareholder’s immediate family, or to
a trust for the Ordinary Shareholders’ own self, or a charitable remainder trust, provided that each such transferee or assignee, prior to the completion of the sale, transfer, or assignment, shall have executed documents assuming the
obligations of the transferring Ordinary Shareholder under this Agreement with respect to the transferred securities. 
 (d) Accession of
Subsequent Shareholders. Prior to a Qualified Public Offering, no Ordinary Shareholder shall sell, assign, transfer, or hypothecate any Ordinary Shares (whether now owned or hereafter acquired) unless the transferee thereof shall agree in
writing in form reasonably acceptable to the Company to be bound by this Section 9.01, as if such transferee were an Ordinary Shareholder. 
  

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 SECTION 9.02 Special Provisions in Relation to the Founders and Management. (a) Unless otherwise approved by
the holders of at least 50% of the Preferred Shares, the Founders and the Management Shall not sell or transfer, or dispose of any Ordinary Shares during the three-year period from the Closing. (b) Each Founder and Management undertake not to
compete with the Company (including but not limited to directly or indirectly engaging in any business or conducting any activities that are same with or similar to those engaged in or conducted by the Company) or solicit any employees of the
Company for a period of one year following the termination of such Founder or Management’s employment relationship with the Company. 
 SECTION 9.03 Right of First Refusal for Key Shareholders. If at any time the Preferred Shareholder proposes to transfer 50% or more of the Preferred Shares to any third parties, each Key Shareholder shall have an option for a period
of thirty (30) days from the receipt of a written notice for such transfer to elect to purchase their respective pro rata shares of all (but not a portion) of the Preferred Shares offered at the same price and subject to the same material terms
and conditions as described in the said notice. If the Key Shareholders fail to exercise the option to purchase all the Preferred Shares offered, the Preferred Shareholder may sell the Preferred Shares to the said third parties. Unless otherwise
provided in this Section 9.03, other provisions regarding the Right of First Refusal for Preferred Shareholder in this Article IX shall apply to the Right of First Refusal for Key Shareholders herein, to the extent such provisions are
applicable. 
 ARTICLE X REGISTRATION RIGHTS 
 SECTION
10.01 Demand Registration. (a) Registration Other Than on Form F-3. (i) Subject to the terms of this Agreement, at any time after a Qualified Public Offering, an Initiating Holder may request the Company in writing to effect
the Registration of Registrable Securities for which the reasonably anticipated aggregate price to the public, would exceed US$15,000,000. Upon receipt of such a request, the Company shall (a) promptly give written notice of the proposed
Registration to all other Holders and (b) as soon as practicable, and in any event within sixty (60) days of the receipt of such request, cause Registrable Securities specified in the request, to be Registered and/or qualified for sale and
distribution in such jurisdictions as the Initiating Holder may reasonably request. The Company shall be obligated to effect only three (3) such Registrations. 
 (b) Registration on Form F-3. Subject to the terms of this Agreement, at any time after a Qualified Public Offering, an Initiating Holder may request the Company in writing to file a Registration Statement on
Form F-3 (or any successor form to Form F-3, or any comparable form for Registration in a jurisdiction other than the United States) for a public offering of Registrable Securities for which the reasonably anticipated aggregate price to the public,
would exceed 
  

 29 

 US$15,000,000, and the Company is entitled to use Form F-3 or a comparable form to Register the requested Registrable
Securities. Upon receipt of such a request the Company shall, as soon as practicable, and in any event within sixty (60) days of the receipt of such request, cause the Registrable Securities specified in the request, to be Registered and
qualified for sale and distribution in such jurisdictions as the Initiating Holder may reasonably request. The Company’s obligation to effect registrations pursuant to this Section 10.01(b) is unlimited. 
 (c) Right of Deferral. (i) The Company shall not be obligated to Register or qualify Registrable Securities pursuant to this
Section 10.01: 
  

	 	(1)	in any jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such Registration or qualification, unless the Company is
already subject to service of process in such jurisdiction; 

  

	 	(2)	if, within ten (10) days of the receipt of any request of the Initiating Holder to Register any Registrable Securities under Section 10.01(a) or Section 10.01(b), the
Company gives notice to the Initiating Holder of its bona fide intention to effect the filing for its own account of a Registration Statement with the Commission within sixty (60) days of receipt of that request (other than a registration of
securities in a transaction under Rule 145 of the Securities Act or an offering solely to employees), provided that the Company is actively employing in good faith all reasonable efforts to cause that Registration Statement to become
effective; or 

  

	 	(3)	within six (6) months immediately following the effective date of any Registration Statement pertaining to the securities of the Company (other than a registration of
securities in a transaction under Rule 145 of the Securities Act or with respect to an employee benefit plan). 

 (ii) if,
after receiving a request from the Initiating Holder pursuant to Section 10.01(a) or Section 10.01(b), the Company furnishes to the Initiating Holder a certificate signed by the Chief Executive Officer of the Company stating that, in the
good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company or its shareholders for a Registration Statement to be filed in the near future, the Company’s obligation to use its commercially
reasonable efforts to file a Registration Statement shall be deferred for a period not to exceed 120 days from the receipt of any request duly submitted by the Initiating Holder under Section 10.01(a) or 10.01(b) to Register Registrable
Securities; provided that the Company shall not exercise the right contained in this Section 10.1(c)(ii) more than twice in any twelve (12) month period. 
 (d) Underwritten Offerings. If, in connection with a request to Register Registrable Securities under Section 10.01(a) or Section 10.01(b), the Initiating Holder seek to distribute such Registrable
Securities in an underwriting, they has the 
  

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 right to so advise the Company as a part of the request, and the Company shall include such information in the written
notice to the other Holders described in Sections 10.01(a) and 10.01(b). In such event, the right of any Holders to include its Registrable Securities in such Registration shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by the Initiating Holder representing a majority in voting power of the Registrable Securities held by the Initiating
Holder) to the extent provided herein. The Initiating Holder proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such
underwriting by the Company (which underwriter or underwriters shall be reasonably acceptable to Initiating Holder representing a majority in voting power of the Registrable Securities held by the Initiating Holder). Notwithstanding any other
provision of this Agreement, if the managing underwriter advises the Company that marketing factors (including the aggregate number of securities requested to be Registered, the general condition of the market, and the status of the Persons
proposing to sell securities pursuant to the Registration) require a limitation of the number of Equity Securities to be underwritten, the underwriters may exclude some of the Registrable Securities from the underwriting if so justified after
excluding any other Equity Securities from the underwriting, provided that any Registration must include at lease 25% of the Shares requested to be included by the holders of Registrable Securities. If a limitation of the number of
Registrable Securities is required pursuant to this Section 10.01(d), the number of Registrable Securities that may be included in the underwriting by selling Holders shall be allocated among such Holders, in proportion, as nearly as
practicable, to the respective amounts of Registrable Securities which the Holders would otherwise be entitled to include in the Registration. Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from the
Registration. If shares of the Company are offered in an underwritten public offering (whether or not a Qualified Public Offering) for the account of any shareholder, each Preferred Shareholder shall have the right to include a pro rata number of
shares in the offering on terms and conditions no less favorable to the Preferred Shareholders than to any other selling shareholders. 
 SECTION 10.02
Piggyback Registrations. (a) Registration of the Company’s Securities. Subject to Section 10.02(c), if the Company proposes to Register for its own account any of its Equity Securities in connection with the public
offering of such securities, the Company shall promptly give the Holders written notice of such Registration and, upon the written request of the Holders given within twenty (20) days after delivery of such notice, the Company shall use
commercially reasonable efforts to include in such Registration any Registrable Securities thereby requested by the Holders. 
 (b) Right
to Terminate Registration. The Company shall have the right to terminate or withdraw any Registration initiated by it under Section 10.02(a) prior to the effectiveness of such Registration, whether or not the Holders have elected to
participate therein. The expenses of such withdrawn Registration shall be borne by the Company in accordance with Section 10.03(c). 
  

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 (c) Underwriting Requirements. (i) In connection with any offering involving an underwriting
of the Company’s Equity Securities, the Company shall not be required to Register the Registrable Securities of any Holder under this Section 10.02 unless such Holder’s Registrable Securities are included in the underwriting and such
Holder enters into an underwriting agreement in customary form with the underwriters selected by the Company and setting forth such terms for the underwriting as have been agreed upon between the Company and the underwriters. In the event the
underwriters advise the Holders seeking Registration of Registrable Securities pursuant to this Section 10.02 in writing that market factors (including the aggregate number of Registrable Securities requested to be Registered, the general
condition of the market, and the status of the persons proposing to sell securities pursuant to the Registration) require a limitation of the number of Equity Securities to be underwritten, the underwriters may exclude some or all Registrable
Securities from the Registration and underwriting if so justified after excluding any other Equity Securities (except for securities to be offered by the Company) from the Registration and underwriting, provided that any Registration must
include at lease 25% of the Shares requested to be included by the Holders. 
 (ii) If a limitation of the number of Registrable Securities
is required pursuant to Section 10.2(c)(i) the number of Registrable Securities that may be included in the Registration and underwriting by selling Holders shall be allocated among such Holders in proportion, as nearly as practicable, to the
respective amounts of Registrable Securities which the Holders would otherwise be entitled to include in the Registration. 
 (iii) If the
Holder disapproves of the terms of any underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriters delivered at least seven (7) days prior to the effective date of the Registration Statement.
Any Registrable Securities excluded or withdrawn from the underwriting shall be withdrawn from the Registration. 
  

 32 

 (d) Exempt Transactions. The Company shall have no obligation to Register any Registrable
Securities under this Section 10.02 in connection with a Registration by the Company (i) relating solely to the sale of securities to participants in a Company stock plan, (ii) relating to a corporate reorganization or other
transaction under Rule 145 of the Securities Act (or comparable provision under the laws of another jurisdiction, as applicable), or (iii) on any form that does not include substantially the same information as would be required to be included
in a Registration Statement covering the sale of the Registrable Securities. 
 SECTION 10.03 Procedures. (a) Registration Procedures and
Obligations. Whenever required under this Agreement to effect the Registration of any Registrable Securities, the Company shall, as expeditiously as possible: 
  

	 	(i)	Prepare and file with the Commission a Registration Statement with respect to those Registrable Securities and use its reasonable best efforts to cause that Registration Statement
to become effective, and, upon the request of the Holders holding a majority of the Registrable Securities Registered thereunder, keep the Registration Statement effective for up to 120 days; 

  

	 	(ii)	Prepare and file with the Commission amendments and supplements to that Registration Statement and the prospectus used in connection with the Registration Statement as may be
necessary to comply with the provisions of Applicable Securities Law with respect to the disposition of all securities covered by the Registration Statement; 

  

	 	(iii)	Furnish to the Holders the number of copies of a prospectus, including a preliminary prospectus, required by Applicable Securities Law, and any other documents as they may
reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 

  

	 	(iv)	Use its reasonable best efforts to Register and qualify the securities covered by the Registration Statement under the securities laws of any jurisdiction, as reasonably requested
by the Holders, provided that the Company shall not be required to qualify to do business or file a general consent to service of process in any such jurisdictions, and provided further that in the event any jurisdiction in which the
securities shall be qualified imposes a non-waivable requirement that expenses incurred in connection with the qualification of the securities be borne by selling shareholders, those expenses shall be payable pro rata by selling shareholders;

  

	 	(v)	In the event of any underwritten public offering, entering into and performing its obligations under an underwriting agreement, in usual and customary form, with the managing
underwriter of the offering. Each shareholder participating in the underwriting shall also enter into and perform its obligations under such an agreement; 

  

 33 

	 	(vi)	Notify the Holders of Registrable Securities covered by the Registration Statement at any time when a prospectus relating thereto is required to be delivered under Applicable
Securities Law or of the happening of any event as a result of which any prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; 

  

	 	(vii)	Provide a transfer agent and registrar for all Registrable Securities Registered pursuant to the Registration Statement and, where applicable, a CUSIP number for all those
Registrable Securities, in each case not later than the effective date of the Registration; 

  

	 	(viii)	Furnish, at the request of any Initiating Holder requesting Registration of Registrable Securities pursuant to this Agreement, on the date that such Registrable Securities are
delivered for sale in connection with a Registration pursuant to this Agreement, (i) an opinion, dated the date of the sale, of the counsel representing the Company for the purposes of the Registration, in form and substance as is customarily
given to underwriters in an underwritten public offering; and (ii) a comfort letter dated the date of the sale, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters; and 

  

	 	(ix)	Take all reasonable action necessary to list the Registrable Securities on the primary exchange upon which the Company’s securities are then traded. 

(b) Information From Holders. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Agreement
with respect to the Registrable Securities of the selling Holders that the selling Holders shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such
securities as shall be required to effect the Registration of such Holders’ Registrable Securities. 
 (c) Expenses of
Registration. All expenses, other than Selling Expenses, incurred in connection with Registrations, filings or qualifications pursuant to this Agreement, including (without limitation) all Registration, filing and qualification fees,
printers’ and accounting fees, fees and disbursements of counsel for the Company and underwriters but excluding any underwriting discounts and commissions, shall be borne by the Company. The Company shall not, however, be 
  

 34 

 required to pay for any expenses of any Registration proceeding begun pursuant to this Agreement if the Registration
request is subsequently withdrawn at the request of the Holders. 
 SECTION 10.04 Indemnification under Registration
Rights. 
  

	 	(a)	Company Indemnity. 

  

	 	(i)	To the extent permitted by law, the Company will indemnify and hold harmless the Holder, its officers, directors, shareholders, legal counsel and accountants, any underwriter (as
defined in the Securities Act) for such Holder and each Person, if any, who controls (as defined in the Securities Act) the Holder or underwriter against any losses, claims, damages or liabilities (joint or several) to which they may become subject
under laws which are applicable to the Company and relate to action or inaction required of the Company in connection with any Registration, qualification, or compliance, insofar as such losses, claims, damages, or liabilities (or actions in respect
thereof) arise out of or are based upon any of the following statements, omissions or violations (each a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such Registration
Statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state in the Registration Statement, including any preliminary prospectus
or final prospectus contained therein or any amendments or supplements thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company
of Applicable Securities Laws, or any rule or regulation promulgated under Applicable Securities Laws. The Company will reimburse the Holders, underwriter or controlling person for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage, liability or action. 

  

	 	(ii)	The indemnity agreement contained in this Section 10.04(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement
is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based
upon a Violation that occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such Registration by any such Holder, underwriter or controlling person of the Company. 

 

 35 

	 	(iii)	With respect to any preliminary prospectus, the foregoing indemnity shall not inure to the benefit of the Holders or underwriter, or any Person controlling (within the meaning of
the Securities Act) the Holders or underwriter, from whom the Person asserting any such losses, claims, damages or liabilities purchased shares in the offering, if a copy of the prospectus (as then amended or supplemented if the Company shall have
furnished any amendments or supplements thereto) was not sent or given by or on behalf of the Holders or underwriter to such Person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the shares to
such Person, and if the prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, claim, damage or liability. 

  

	 	(b)	Holders Indemnity. 

  

	 	(i)	To the extent permitted by law, the selling Holder will indemnify and hold harmless the Company, its directors, officers, legal counsel and accountants, any underwriter, and each
Person, if any, who controls (within the meaning of the Securities Act) the Company or such underwriter, against any losses, claims, damages or liabilities (joint or several) to which any of the foregoing persons may become subject, under Applicable
Securities Laws, or any rule or regulation promulgated under Applicable Securities Laws, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent
(and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by the Holders expressly for use in connection with such Registration; and the Holders will reimburse any person intended to be
indemnified pursuant to this Section 10.04(b), for any legal or other expenses reasonably incurred by such person in connection with investigating or defending any such loss, claim, damage, liability or action. 

  

	 	(ii)	The indemnity contained in this Section 10.04(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of the Holders (which consent shall not be unreasonably withheld), and in no event shall any indemnity under this Section 10.04(b) exceed the gross proceeds from the offering received by such Holders.

 (c) Notice of Indemnification Claim. Promptly after receipt by an indemnified party under Section 10.04(a) or
Section 10.04(b) of notice of the 
  

 36 

 commencement of any action (including any governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under Section 10.04(a) or Section 10.04(b), deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate
in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the indemnifying parties. An indemnified party (together with
all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party
by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this
Section 10.04, but the omission to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 10.04. 
 (d) Contribution. If any indemnification provided for in Section 10.04(a) or Section 10.04(b) is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and of the indemnified party, on
the other, in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified
party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified
party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. 
 (e) Underwriting Agreement. To the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the
foregoing provisions, the provisions in the underwriting agreement shall control. 
 (f) Survival. The obligations of the Company and
the Holders under this Section 10.04 shall survive the completion of any offering of Registrable Securities in a Registration Statement under this Agreement, and otherwise. 
 SECTION 10.05 Additional Undertakings. (a) Reports Under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 promulgated under the Securities Act and any comparable
provision of any Applicable Securities Law that may at any time permit a Holder to sell securities of the Company to the public 

  

 37 

 
without Registration or pursuant to a Registration on Form F-3 (or any comparable form in a jurisdiction other than the United States), the Company agrees
to: 
  

	 	(i)	make and keep public information available, as those terms are understood and defined in Commission Rule 144 (or comparable provision under Applicable Securities Laws in any
jurisdiction where the Company’s securities are listed), at all times following ninety (90) days after the effective date of a Qualified Public Offering; 

  

	 	(ii)	file with the Commission in a timely manner all reports and other documents required of the Company under all Applicable Securities Laws; and 

  

	 	(iii)	at any time following 90 days after the effective date of the Qualified Public Offering, promptly furnish to the Holders, upon request (i) a written statement by the Company
that it has complied with the reporting requirements of all Applicable Securities Laws at any time after it has become subject to such reporting requirements or, at any time after so qualified, that it qualifies as a registrant whose securities may
be resold pursuant to Form F-3 (or any form comparable thereto under Applicable Securities Laws of any jurisdiction where the Company’s securities are listed), (ii) a copy of the most recent annual or quarterly report of the Company and
such other reports and documents as may be filed by the Company with the Commission, and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the Commission, that permits the selling of
any such securities without Registration or pursuant to such form. 

 (b) Limitations on Subsequent Registration Rights.
From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holder, enter into any agreement with any holder or prospective holder of any Equity Securities of the Company that would allow such holder or
prospective holder (a) to include such securities in any Registration filed under Section 10.02, unless under the terms of such agreement such holder or prospective holder may include such Equity Securities in any such Registration only to
the extent that the inclusion of such securities will not reduce the amount of the Registrable Securities of the Holder that are included, (b) to demand Registration of their securities, or (c) to enjoy registration rights otherwise
superior to or in parity with the Preferred Shareholders except that this sentence will not apply in the situation where the Company issues no more than 3 million new shares which has the right, preference or priority on a parity with the
Preferred Shares. 
 (c) “Market Stand-Off” Agreement. Each Holder agrees that it will not, without the prior written
consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the Company’s initial public offering and ending on the date specified by the Company and the managing underwriter (such period
not to exceed l80 days) (i) lend, offer, pledge, sell, contract 

  

 38 

 
to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise
transfer or dispose of, directly or indirectly, any Registrable Securities or other shares of the Company (whether then owned or thereafter acquired) or (ii) enter into any swap or other arrangement that transfers to another, in whole or in
part, any of the economic consequences of ownership of the Shares of the Company, whether any such transaction described in Section (i) or (ii) above is to be settled by delivery of Equity Securities or such other securities, in cash or
otherwise. The underwriters in connection with the Company’s initial public offering are intended third party beneficiaries of this Section 10.05(c) and shall have the right, power and authority to enforce the provisions hereof as though
they were a party hereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities of each Holder (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such period. 
 (d) Termination of Registration Rights. Notwithstanding anything to the
contrary in this Agreement, if: (i) the Company obtains from the Commission a “no-action” letter in which the Commission indicated that it will take no action if, without Registration under the Securities Act or other Applicable
Securities Laws, any Holder disposes of Registrable Securities covered by any request for Registration made under this Agreement in the specific manner in which such Holder proposes to dispose of Registrable Securities included in that request
(including, without limitation, inclusion of the Registrable Securities in an underwriting initiated by either the Company or the Holders) and that the Registrable Securities may be sold to the public without Registration or (ii) in the opinion
of counsel for the Company , no Registration under the Securities Act (or other Applicable Securities Law) is required in connection with the disposition and that the Registrable Securities may be sold to the public without Registration, then the
Registrable Securities included in the request for Registration, shall not be eligible for Registration under Section 10.01 with respect to the proposed disposition. Any Registrable Securities not so disposed of shall be eligible for
Registration in accordance with the terms of this Agreement with respect to other proposed dispositions to which this Section 10.05(d) does not apply. In any event, these registration rights shall terminate on the fifth anniversary of a
Qualified Public Offering. 
 (e) Assignment of Registration Rights. The right to cause the Company to Register Registrable Securities
pursuant to this Agreement may be assigned by a Holder to a transferee or assignee of such securities [that (i) is an Affiliate of the Holder, or (ii) after such assignment or transfer, holds Registrable Securities representing at least
100,000 Ordinary Shares (subject to appropriate adjustment for stock splits, stock dividends, combinations and other recapitalizations)], provided that: (a) the Company is, within a reasonable time after such transfer, furnished with
written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; (b) such transferee or assignee agrees in writing to be bound by and subject to the
terms and conditions of this Agreement; (c) such transfer or assignment shall be effective only if immediately following such transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under
Applicable Securities Law; ; (e) the transfer is in connection with a transfer of all securities of the Company; and (f) the transfer is to constituent partners or 

  

 39 

 
shareholders who agree to act through a single representative. In the event of a transfer or assignment of Registrable Securities which does not satisfy the
conditions set forth above, such securities shall no longer be deemed to constitute “Registrable Securities” for purposes of this Agreement. 
 (f) Exercise of Preferred Shares. Notwithstanding anything to the contrary provided in this Agreement, the Company shall have no obligation to Register Registrable Securities which, if constituting Ordinary
Share Equivalents, have not been exercised, converted or exchanged, as applicable, for Ordinary Shares. 
 ARTICLE XI. PRE-EMPTIVE RIGHT 

SECTION 11.01 Pre-emptive Right. (a) General. The Company hereby grants to the Preferred Shareholder a right of first refusal to purchase up to a
pro rata share of the entirety of any New Securities which the Company may, from time to time, propose to sell and issue. A Preferred Shareholder’s “pro rata share”, for purposes of this pre-emptive right shall be determined according
to the number of Ordinary Shares owned by the Preferred Shareholder immediately prior to the issuance of the New Securities (assuming the exercise, conversion or exchange of any Ordinary Share Equivalents) in relation to the total number of Ordinary
Shares outstanding immediately prior to the issuance of the New Securities (assuming the exercise, conversion or exchange of any Ordinary Share Equivalents). 
 (b) Issuance Notice. In the event the Company proposes to undertake an issuance of New Securities, it shall give the Preferred Shareholder written notice (an “Issuance Notice”) of such
intention, describing the type of New Securities, and their price and the general terms upon which the Company proposes to issue the same. Each Preferred Shareholder shall have thirty (30) days after any such notice is mailed or delivered to
agree to purchase up to such Preferred Shareholder’s pro rata share of such New Securities for the price and upon the terms specified in the notice by giving written notice to the Company and stating therein the quantity of New Securities to be
purchased. 
 (c) Sales by the Company. Upon the expiration of the above thirty (30) days notice period, the Company may sell any
New Securities with respect to which the Preferred Shareholders’ right of first refusal under this Section 11.03 was not exercised, at a price and upon terms no more favorable to the purchasers thereof than specified in the Issuance
Notice. In the event the Company has not sold such New Securities within a 90-day period, the Company shall not thereafter issue or sell any New Securities, without first again offering such securities to the Preferred Shareholders in the manner
provided in Section 11.03(a) above. 
 (d) Assignments and Transfers. No Third Party Beneficiaries. This Agreement and the rights
and obligations of the parties hereunder shall inure to the benefit of, and be binding upon, their respective successors, assigns and legal representatives, but shall not otherwise be for the benefit of any third party. The rights of the Preferred
Shareholder hereunder are only assignable (i) by such Preferred Shareholder to any other Preferred Shareholder, if any, (ii) to a partner or affiliate of such Preferred Shareholder or (iii) to an assignee or transferee who acquires
all of the 

  

 40 

 
Equity Securities held by the Preferred Shareholder. This Agreement and the rights and obligations of any party hereunder shall not otherwise be assigned
without the mutual written consent of the other parties. 
 (e) Legend. Each existing or replacement certificate for shares now owned
or hereafter acquired by the Ordinary Shareholders shall, to the extent applicable, bear the following legend upon its face: 
 “THE
SALE, PLEDGE, HYPOTHECATION, ASSIGNMENT OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF RIGHT OF FIRST REFUSAL, CO-SALE AGREEMENT AND/OR OTHER TRANSFER RESTRICTIONS, AS APPLICABLE, BY AND
BETWEEN THE SHAREHOLDER, THE COMPANY AND CERTAIN PREFERRED SHAREHOLDERS OF SHARES OF THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.” 
 (f) Exception. Notwithstanding anything to the contrary contained in this Article XI, this Article XI shall not apply to the issuance of no more
than [3 million] new shares of the Company in the second closing within 3 months after the Closing. 
 (g) Termination. This Article
XI shall terminate upon a Qualified Public Offering. 
 ARTICLE XII. REDEMPTION RIGHT 
 SECTION 12.01 Redemption Rights of Preferred Shareholders. Subject to the terms and conditions of this Agreement and to the extent permitted by applicable laws, at any time and from time to time after
December 31, 2009, upon request by the holders of at least 50% of the Preferred Shareholders, the Company shall redeem all of the outstanding Series A Preferred Shares. The amount payable to the redeeming party shall be converted into a debt
payable over 12 months or on a payment schedule mutually agreed by the Company and the redeeming party. The redemption amount shall be equal to 1 time the original purchase price of the Series A Preferred Shares, as the case may be, plus a compound
annual interest of 10% of such amount over the repayment period. The redemption amount shall be proportionally adjusted for share splits, share dividends, recapitalizations and similar events. 
 ARTICLE XIII. AFFILIATED TRANSACTION 
 SECTION 13.01 Affiliated
Transactions. For any affiliated transaction that is to be entered into by the Company with any of its Affiliates or Affiliates of the Founders, the terms, conditions and consideration for such transaction shall be comparable to a normal
arms-length transaction that is to be conducted in the market at the time such transaction is conducted. However, the transactions between the Domestic Company 

  

 41 

 
and the Group shall not be construed as affiliated transactions for the purpose of this Section 13. 
 ARTICLE XIV. PUT OPTION 
 SECTION 14.01 Put
Right. Within two (2) years from the date of the Closing under the Series A Share Purchase Agreement, the Key Shareholders shall have the right to sell to the Preferred Shareholder the entire Shares held by such Key Shareholders pursuant to
and in compliance with the terms hereof (“Put Option”). Such sale shall be made on the following terms and conditions: 
 (a)
A Key Shareholder may exercise the Put Option only if all the Shares held by such Key Shareholder will be sold to the Preferred Shareholder, and a Key Shareholder is not allowed to only sell part of its/his Shares in exercising the Put Option;

 (b) Put Option enjoyed by Key Shareholders are not transferable, and no purchaser or assignee of the Shares has the right to exercise the
Put Option; 
 (c) The price per share at which the Shares are to be sold to the Preferred Shareholder shall be equal to eight point sixty
five (8.65) times of the Net Operating Income (as defined in Section 14.02) per Share in the complete fiscal year preceding to the notice as mentioned in sub-paragraph (ii) hereafter as reflected in the consolidated financial
statements of the Company audited by a Big-4 accounting firm. Any and all reasonable fees and expenses, including legal fees and out-of-pocket expenses, incurred pursuant to the exercise or the attempted exercise of such Put Option under this
Agreement shall be deducted from the price payable by the Preferred Shareholder to such Key Shareholder. 
 (d) A Key Shareholder is only
entitled to exercise Put Option once a year, subject to each sale of a minimum of 500,000 shares, within the two years of the Closing, and shall deliver a written notice (as specified in the subsection (c) below) within 10 days from the first
and second anniversaries respectively for the purpose of exercising the Put Option; 
 (e) The Company shall have Net Operating Income for
the first year of the Closing for exercising the first-year Put Option by a Key Shareholder, and shall have a higher amount of Net Operating Income for the second year than for the first year for exercising the second-year Put Option by the Key
Shareholder; 
 (f) A Key Shareholder shall, if exercising the right created hereby, deliver to the Preferred Shareholder a written notice of
selling all the Shares it/he holds in the Company to the Preferred Shareholder (“Put Option Notice”). 
 (g) The Preferred
Shareholder shall purchase the Shares specified to be sold under the Put Option Notice. The payment of the purchase price can be made in cash or shares issued by the Preferred Shareholder (“Consideration Shares”); 
  

 42 

 (h) At least 50% of the purchase price for the Shares shall be paid in cash up to USD 4,800,000 in
aggregate for total annual exercise; provided, however, that (i) if the Investor and exercising Key Shareholders mutually desire, the cash portion of the purchase price can be lower than 50%; or (ii) at the choice of the Preferred
Shareholder, the total annual cash payment can be higher than USD4,800,000. The Preferred Shareholder shall, within forty-five (45) days upon receipt of the notice described above from the Key Shareholder(s) exercising the right created hereby,
elect to pay the purchase price in cash or the Consideration Shares, after deducting the amount of reimbursable fees and expenses, as specified above. The price of the Consideration Shares shall be the average weighted trading price of the shares of
the Preferred Shareholder in the past thirty (30) trading days prior to the date of the Put Option Notice]. 
 (h) The payment of the
purchase price pursuant to paragraph (g) above shall be made against delivery of the certificate or certificates representing Shares to be sold, together with a transfer form signed by the Key Shareholder(s) transferring such Shares to the
Preferred Shareholder. 
 (i) The Consideration Shares obtained by the Shareholder(s) shall be subject to lock-up for a period of two
(2) years. A Key Shareholder can only dispose of one half (1/2) of the Consideration Shares it received in every year during such lock-up period. 
 (j) The Put Option will terminate upon the earliest to occur of (i) immediately prior to the effectiveness of the registration statement for the Company’s Qualified IPO, (ii) the effectiveness of any
reorganization, consolidation, merger, sale or transfer of the Company’s outstanding Shares or similar transaction (excluding a sale of shares by the Company for capital raising purposes) in which (A) the members of the Company immediately
prior to such reorganization, merger or consolidation, sale or transfer of shares or similar transaction do not (by virtue of their ownership of securities of the Company immediately prior to such transaction) beneficially own shares possessing a
majority of the voting power of the surviving company or companies immediately following such transaction and (B) the consideration received in such transaction by members of the Company (by virtue of their ownership of securities of the
Company immediately prior to such transaction) consists solely of cash and/or securities of any entity for which such class of securities has been and continues to be traded on an internationally-recognized securities exchange, and
(iii) immediately prior to the effectiveness of the sale, lease or disposition by the Company of all or substantially all of the Company’s assets in which (A) the members of the Company immediately prior to such sale, lease or
disposition do not (by virtue of their ownership of securities of the Company immediately prior to such transaction) beneficially own shares possessing a majority of the voting power of the purchasing entity and (B) the consideration received
in such transaction by the Company consists solely of cash and/or securities of any entity for which such class of securities has been and continues to be traded on an internationally-recognized securities exchange. 
 SECTION 14.02 Net Operating Income. For the purpose of this Clause, the “Net Operating Income” as used in this Section shall mean Net
Income less Non-Operating Income excluding Interest Income and Dividend Income (the terms 

  

 43 

 
“Net Income”, “Non-Operating Income”, “Interest Income” and “Dividend Income” are defined in US GAAP). 
 In calculating the “Net Operating Income”: 
 (a) No provision shall be made for revenues recognized but not collected for less than 3 months unless the customer in question has entered voluntary or involuntary bankruptcy proceeding, is under financial distress
or is otherwise in a condition which the Board shall reasonably believe will impact its ability to perform its payment obligations to the Company; 
 (b) Provisions shall be made for revenues recognized but not collected for 3 months or longer in the following percentages: 
 (i)
30%, if more than 3 months but less than 4 months, 
 (ii) 70%, if more than 4 months but less than 5 months, and 
 (iii) 100%, if more than 5 months; 
 which provisions shall be deducted from the Net Operating Income of the relevant fiscal year. 
 ARTICLE XV. ISSUANCE OF ADDITIONAL PREFERRED
SHARES 
 SECTION 15.01 Issuance of Additional Shares based on 2006 Accounts. Upon the delivery by the Company of the Company’s audited
consolidated financial statements for the 12 month period ending on March 31, 2007 prepared in accordance with the US GAAP and audited by a Big-Four accounting firm mutually selected by the Company and the Series A Preferred Shareholder
(the “2006 Accounts”): 
 If the Net Operating Income reflected in the 2006 Accounts (“2006N”) is less than
US$10,000,000, the Preferred Shareholder shall be entitled to purchase additional Preferred Shares from the Company at a consideration being par value of the Shares. The number of the additional Preferred Shares shall be calculated as follows:

 ANP = NP×(10,000,000/2006N* ISR2006 - 1) 
 For the purpose of this Section 15.01: 
 NP = The number of Series A Preferred Shares issued on Closing

  

 44 

 ANP = Additional number of preferred shares to be issued 
 ISR 2006 = (Number of issued shares and warrants as of December 31,2006- Ordinary Shares issued for the exercise of the employee Stock Option Pool)
/ (number of issued shares and warrants as of the Closing + Ordinary Shares actually issued for Happy Digital) 
 If 2006N is less than USD
5 million, the Preferred Shareholder has the option to further buy additional 6 million Series A Preferred Shares at the price of higher of 8.65 times of the Net Operating Income per Share or $1 per share. 
 Notwithstanding anything to the contrary in this Section 15.01, in no event should ANP exceed 7.5 million shares. 
 SECTION 15.02 Issuance of Additional Shares based on 2007 Accounts. Upon the delivery by the Company of the Company’s audited consolidated financial
statements for the fiscal year ending on December 31, 2007 prepared in accordance with the US GAAP and audited by a Big-Four accounting firm mutually selected by the Company and the Series A Preferred Shareholder (the “2007
Accounts”): 
 If the Net Operating Income reflected in the 2007 accounts (“2007N”) is less than US$17,000,000, the
Preferred Shareholders shall be entitled to purchase additional Preferred Shares from the Company at a consideration being par value of the Shares. The number of the additional Preferred Shares shall be calculated as follows: 
 ANP = NP×(17,000,000/2007N*ISR2007 - 1) 
 For the purpose of this Section 15.02: 
 NP = the number of Series A Preferred Shares issued on Closing 
 ANP = Additional number of preferred shares to be issued 
 ISR2007 = (Number of issued shares and warrants as of December 31,2007- Ordinary Shares issued in the exercise of the employee Stock Option Pool) /(number of issued shares and warrants as of Closing + Ordinary
Shares actually issued for Happy Digital) 
 In case the additional Preferred Shares have been already issued to the Preferred Shareholder
according to Section 15.01, then the additional Preferred Shares issued under this Section 15.02 shall be calculated as follows: 
 ANP = NP×(17,000,000/2007N*ISR2007 - 1) - ANP1 
  

 45 

 ANP1 = The number of additional Preferred Shares already issued according to Section 15.01

 Notwithstanding anything to the contrary in this Section 15.02, in no event should ANP plus ANP1 exceed 7.5 million shares.

 SECTION 15.03 Exercise of Options. The Preferred Shareholder’s option to purchase the additional shares under this Article XV shall expire
after the closing of a Qualified Public Offering. Prior to such expiry, the Preferred Shareholder may assign its right under the option to a no-competing third party. 
 SECTION 15.04 Net Operating Income. For the purpose of this Section, the “Net Operating Income” as used in this Section shall mean Net Income less (Non-Operating Income excluding Interest Income and
Dividend Income) plus Stock Based Compensation plus amortization expenses related to the 3 million shares of warrants issued to JCE to the extent that the valuation of such warrants exceeds $1 per share ( the terms “Net Income”,
“Non-Operating Income”, “Interest Income”, “Dividend Income” and “Stock Based Compensation” are defined in US GAAP). If the Net Operating Income is negative in either 2006 or 2007, then it will be 0 in
calculating the formula set forth in Sections 15.01 and 15.02. 
 In calculation of the Net Operating Income: 
 (a) No provision shall be made for revenues recognized but not collected for less than 3 months unless the customer in question has entered voluntary or
involuntary bankruptcy proceeding, is under financial distress or is otherwise in a condition which the Board shall reasonably believe will impact its ability to perform its payment obligations to the Company; 
 (b) Provisions shall be made for revenues recognized but not collected for 3 months or longer in the following percentages: 
 (i) 30%, if more than 3 months but less than 4 months, 
 (ii) 70%, if more than 4 months but less than 5 months, and 
 (iii) 100%, if more than 5 months; 

 

 46 

 which provisions shall be deducted from the Net Operating Income of fiscal year 2006 or 2007, as the case may be, unless
such provisions have already been reflected in the 2006 Accounts or 2007 Accounts, as the case may be. 
 (c) Upon actual collection in cash
of revenues for which provisions have been made hereunder, such collected revenues less collection expenses shall be deducted from the provisions account and reflected in the Net Operating Income for 2006 or 2007, as the case may be;
provided, however, that the cash collection period shall not exceed 12 months following the date on which the revenue recognition. 
 (d) The calculation of Net Operating Income as provided in this Section 15 shall be based on accounts closed on (A) March 31, 2007, in the case of the 2006 Accounts, and December 31, 2007, in the case of the 2007
Accounts, or (B) three months prior to a planned Qualified Public Offering, whichever is earlier. The Series A Preferred Shareholder shall have the right to retain an auditor at its own expense to validate the actual revenue collection for the
purpose of the adjustment to the Net Operating Income as provided hererin. Such adjustments to the calculation of Net Operating Income for the purpose of determining the number of additional Preferred Shares to be issued shall be deemed to be
effected immediately prior to the closing of the Qualified Public Offering. 
 ARTICLE XVI MISCELLANEOUS 
 SECTION 16.01 Insurance. The Company shall procure Directors’ Personal Liability Insurance for each of the Directors at least six months before a Qualified
Public Offering or liquidation. 
 SECTION 16.02 Successors and Assigns. (a) This Agreement is personal to the Parties hereto and save as
expressly provided herein, none of them may assign, mortgage, charge or sub-license any of their respective rights herein, or sub-contract or otherwise delegate any of its obligations herein, except with the prior written consent of the other
Parties hereto. 
 (b) Subject to sub-Section (a) above, this Agreement shall be binding on and inure for the benefit of the
successors, permitted assigns and personal representatives (as the case may be) of each of the Parties hereto. 
 SECTION 16.03 Cumulative Rights.
Unless otherwise provided in this Agreement, any remedy conferred on any Party hereto for breach of this Agreement shall be in addition and without prejudice to all other rights and remedies available to it. 
 SECTION 16.04 Entire Agreement; Amendments. (a) Entire Agreement. This Agreement shall supersede all and any previous agreements, understandings or
arrangements (if any) between and among the parties hereto or any of them in relation to the subject matter hereof and all or any such previous agreements, understandings or arrangements (if any) shall cease and determine with effect from the date
hereof. This Agreement constitutes the whole agreement between and among the Parties hereto or any of them in relation to the subject matter hereof (no Party having relied on any representation, warranty or undertaking made by any other party which
is not a term of this Agreement). 
  

 47 

 (b) Amendment. Any term of this Agreement may be amended and the observance of any term of this Agreement
may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of each of (i) the Company, (ii) the Preferred Shareholders, and (iii) Ordinary Shareholders
representing 60% of the Equity Securities (on as-converted basis) held by all the Ordinary Shareholders. Any amendment or waiver effected in accordance with this paragraph shall be binding upon the parties and their respective successors and
assigns. 
 SECTION 16.05 Further Assurance. Each of the Parties hereto undertakes with each of the other Parties that it shall do, or shall procure
to be done, all such acts and things and shall execute, or shall procure to be executed, all such documents as may be necessary or appropriate to implement the provisions of this Agreement or otherwise to give full legal force and effect thereof.

 SECTION 16.06 Severability. The Parties hereto intended that the provisions of this Agreement shall be enforced to the maximum extent permissible
under the laws applied in each jurisdiction in which enforcement of any provisions of this Agreement is sought. If any particular provision or part of this Agreement shall be held to be invalid or unenforceable, this Agreement shall be deemed to be
amended by the deletion of the provision or part held to be invalid or unenforceable or, to the extent permissible by the applicable laws of the relevant jurisdiction in which such enforcement is sought, such provision or part shall be deemed to be
varied in such a way as to achieve most closely the purpose of the original provision or part in a manner which is valid and enforceable, provided that for the avoidance of doubt, such amendments shall apply only with respect to the operation of
this Agreement in the particular jurisdiction in which the decision as to invalidity or unenforceability is made. 
 SECTION 16.07 Non-waiver. No
delay or omission on the part of any Party hereto in exercising any right, power or privilege shall operate to impair such right, power or privilege or be construed as a waiver by such Party of the same and no single or partial exercise or
non-exercise or delay in exercising any right, power or privilege by any Party hereto shall in any circumstances preclude any other or further exercise by such Party of such right, power or privilege or the exercise of any other right, power or
privilege by such Party. 
  

 48 

 SECTION 16.08 Counterparts. This Agreement may be executed in counterparts and by different Parties hereto on
separate copies or counterparts and which taken together shall constitute one and the same agreement. The facsimile transmissions of any executed original document (including without limitation, any page of an original document on which an original
signature appears) and/or retransmission of any such facsimile transmission shall be deemed to be the same as the delivery of an executed original. At the request of any Party hereto, the other Parties hereto shall confirm facsimile transmissions by
executing duplicate original documents and delivering the same to the requesting party or parties. 
 SECTION 16.09 Dispute Resolution; Governing Law.
(a) Any dispute, controversy or claim arising out of or relating to this Agreement, or the interpretation, breach, termination or validity hereof, shall be resolved through consultation. Such consultation shall begin immediately after one Party
hereto has delivered to the other Party hereto a written request for such consultation. If within thirty (30) days following the date on which such notice is given the dispute cannot be resolved, the dispute shall be submitted to arbitration
upon the request of either Party with notice to the other. 
 (b) The arbitration shall be conducted in Hong Kong under the auspices of the
Hong Kong International Arbitration Centre (“HKIAC”) in accordance with its arbitration rules. There shall be a single arbitrator. If the parties do not agree to appoint an arbitrator who has consented to participate within thirty
(30) days after a notice of arbitration, the relevant appointment shall be made by HKIAC. 
 (c) The arbitration proceedings shall be
conducted in English. 
 (d) Each Party hereto shall cooperate with the other(s) in making full disclosure of and providing complete access
to all information and documents requested by the other in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on such party. 
 (e) The award of the arbitration tribunal shall be final and binding upon the disputing parties, and the prevailing party may apply to a court of
competent jurisdiction for enforcement of such award. 
 (f) Any Party in dispute with another shall be entitled to seek preliminary
injunctive relief from any court of competent jurisdiction pending the constitution of the arbitral tribunal. 
 (g) This Agreement shall be
governed by and construed in accordance with the laws of the State of New York without regard to provisions regarding choice of laws or conflict of laws. 
  

 49 

 SECTION 16.10 Effectiveness. This Agreement shall take effect, after being duly executed and delivered by the
Investor and the Ordinary Shareholders (including the Key Shareholders) representing 51% or more of the vote of the Ordinary Shareholders, upon the effectiveness of the Series A Share Subscription Agreement. 
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 
  

 50 

 SCHEDULE 1 
 Particulars of the Company 
 as at the date of this Agreement 
  

					
	1.	  	Name:	  	T2CN Holding LTD.
			
	2.	  	Date of Incorporation:	  	May 7, 2004
			
	3.	  	Country of incorporation	  	British Virgin Islands,
		  	and status of company:	  	International Business Company
			
	4.	  	Registered number:	  	
			
	5.	  	Registered office:	  	offices of S-HR&M Financial Service Limited of Kingston Chambers P.O.Box 173, Road Tow, Tortola, British Virgin Islands
			
	6.	  	Share capital:	  	USD 500,000
			
	7.	  	Issued shares:	  	31,928,001
			
	8.	  	Directors:	  	TAO FENG, BO FENG, JI WANG, JUN-TSE TENG,
			
	9.	  	Secretary:	  	N/A
			
	10.	  	Financial year end:	  	December 31

 SCHEDULE 2 
 List of Key Shareholders 
 2-1    List of Founders 
 Ji Wang 

 
 Yanqing Li 

 
 Jun-Tse Teng 

 
 2-2    List of Management  
 William Zhu 
 Yu-Chia Lee 
 Weigang YE 
 2-3 List of Other Key Shareholders 
 Chengwei (China) Investment Company 

 
 Michelle Cote-Dear 
 D Bruce Horton 
 T. Robert Horton 
 Bradley N. Scharfe 
 Guy Peckham 
 Newmargin T2CN Investment Ltd. 
 Kingland and Overseas Development Inc. 
 Bryan M. Dear 
 Calneva Financial Group

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