Document:

Execution
        Version

    

    

      

       

      SHARE
        PURCHASE AGREEMENT

       

      For
        the
        Purchase of Common Shares

      

      of

      

      Legend
        Media Tianjin Investment Company Limited

      

      By

      

      Well
        Chance Investments Limited

      

      

      May
        8,
        2008

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      SHARE
        PURCHASE AGREEMENT

       

      This
        Share Purchase Agreement (the “Agreement”)
        is
        made and entered into as of May 8, 2008, by and among:

       

      	1.  	
              Legend
                Media Inc.,
                a
                corporation incorporated under the Laws of the State of Nevada, United
                States of America ( “Legend”);

            

       

      	2.  	
              Well
                Chance Investments Limited, an international business company incorporated
                under the Laws
                of the British Virgin Islands (the
                “Purchaser”);

            

       

      	3.  	
              Music
                Radio Limited, an international business company incorporated under
                the
                Laws of the British Virgin Islands (the "Seller"); and
                

            

       

      	4.  	
              Ju
                Baochun (巨宝春)
                an individual holding PRC ID card No. ______________; and
                Xue Wei (薛伟),
                an individual holding PRC ID card No. ______________
                (each a “Founder” and collectively the
                “Founders”).

            

       

      The
        Seller and the Founders are collectively referred to as the “Seller
        Parties”,
        and
        each individually as a “Seller
        Party”.
        The
        Purchaser and the Seller Parties are referred to herein collectively as the
        “Parties”
and
        each individually as a “Party”.
        Certain capitalized terms used in this Agreement are defined in Article 12
        of
        this Agreement.

       

      RECITALS

       

      	A.  	
              The
                Purchaser is a wholly-owned subsidiary of
                Legend.

            

       

      	B.  	
              Legend
                Media Tianjin Investment Company Limited is an international business
                company incorporated under the Laws of the British Virgin Islands
                (the
                “Company”)
                and a wholly-owned subsidiary of the
                Seller.

            

       

      	C.  	
              Legend
                Media Tianjin HK Limited is a Hong Kong company that will be a
                wholly-owned subsidiary of the Company (“HK
                Company”).

            

       

      	D.  	
              HK
                Company intends to set up a PRC Wholly Foreign Owned Entity, being
                a
                wholly-owned subsidiary of the HK Company (“PRC
                Subsidiary”).

            

       

      	E.  	
              Tianjin
                Yinse Lingdong Advertising Co., Ltd. is a PRC company limited by
                shares
                (“Yinse”).
                The Company, the HK Company, the PRC Subsidiary and Yinse are referred
                to
                herein collectively as the “Group
                Companies”
                and each individually as a “Group
                Company”.

            

       

      	F.  	
              The
                Founders are the sole shareholders of the Seller and
                Yinse.

            

       

      	G.  	
              On
                the terms and subject to the conditions set forth herein, the Purchaser
                desires to purchase, and the Seller desires to sell to the Purchaser,
                common shares of the Company (the “Purchased
                Shares”),
                which Purchased Shares constitute 80% of the
                Shares.

            

       

      
        
          
          

        

        
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      NOW,
        THEREFORE, the Parties hereby agree as follows:

       

      Article
        1  

       

      

       

      Share
        Purchase and Sale

       

      1.01.  Purchase
        and Sale. Subject
        to the terms and conditions hereof, at the Closing (as defined below), the
        Seller shall sell and transfer the Purchased Shares to the Purchaser, and
        the
        Purchaser shall purchase the Purchased Shares from the Seller. 

       

      1.02.  Purchase
        Price; Payment Schedule. 
        In
        consideration for the sale and transfer of the Purchased Shares to the
        Purchaser, the Purchaser shall pay to the Seller cash consideration and share
        consideration, as follows:

       

      (i)  Upon
        Closing, Purchaser shall deliver the share certificates representing the
        number
        of shares of common stock of Legend with an aggregate Issue Price of
        USD7,160,714 (the “Share Consideration”) to an escrow agent mutually
        designated by the Purchaser and Seller (the “Escrow Agent”) and subject
        to an escrow agreement (“Escrow Agreement”). The Escrow Agreement shall
        provide that the costs for the said escrow will be equally shared by the
        Purchaser and the Seller. The per share “Issue Price” is the weighted
        average trading price of one share of Legend’s common stock for the 90 trading
        days immediately prior to the date hereof. 

       

      (ii)  Within
        28
        days after Closing, Purchaser shall deposit USD2 million (the “Cash
        Consideration”) to an escrow account managed by the Escrow
        Agent.

       

      1.03.  Escrow
        Restrictions.
        The
        Share Consideration, Cash Consideration pursuant to Section 1.04 and the
        original certificates and documents pursuant to Section 1.08 shall be released
        by the Escrow Agent to the Seller or the Purchaser, as the case may be, upon
        occurrence of each of the followings:

       

      (i)  Yinse
        has
        entered into a contract with Atis Advertising (the “Atis Contract”) in
        form and content acceptable to Purchaser, pursuant to which (A) Yinse is
        granted
        the exclusive right to market and sell all broadcast advertising for China
        National Radio Station Music Radio in Tianjin, local frequency FM92.5, (B)
        the
        term of such exclusivity is at least 2 years, (C) and any fees payable for
        any
        subsequent 12-month period by Yinse under the Atis Contract shall not be
        increased by more than 20% of the fees payable in the first 12-month period.
        

       

      (ii)  Yinse
        and/or the Founders have entered into certain contracts designated by Purchaser,
        in form and content acceptable to Purchaser (the “Yinse Contracts”), that
        contain one or more of the following provisions: (A) the provision of exclusive
        technical consulting and services by the PRC Subsidiary to Yinse, (B) the
        right
        of the PRC Subsidiary to vote the Founders’ Yinse shares, (C) a pledge by the
        Founders to transfer Yinse shares to the PRC Subsidiary or its designee upon
        certain events of breach or default, (D) an option by PRC Subsidiary or its
        designee to purchase Founders’ Yinse’s shares, (E) powers of attorney permitting
        the PRC Subsidiary to act on behalf of the Founders in connection with the
        foregoing, and (F) non-disclosure obligations and non-competition obligations
        pursuant to the Section 4.06 of this Agreement on the part of the
        Founders.

       

      
        
          
          

        

        
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      1.04.  Release
        from Escrow.
        If the
        Atis Contract and the Yinse Contracts are fully executed on or prior to December
        31, 2008, the Cash Consideration and that portion of the Share Consideration
        with an aggregate Issue Price of USD2,160,714 shall be released to the Seller
        within 7 days after such execution, and the remaining Share Consideration
        shall
        be released within 7 days after determination of the 2008 Revenue (as defined
        below), in accordance with and subject to the terms of Section 1.05. If such
        execution fails to occur on or prior to December 31, 2008, the Share
        Consideration and the Cash Consideration shall be released to the Purchaser.
        The
        Purchaser shall have the right to seek release to Purchaser of any Share
        Consideration or Cash Consideration in an amount equal to any Loss incurred
        by
        Purchaser in accordance with Article 10.

       

      1.05.  Adjustment
        and Release of Remaining Share Consideration. 

       

      (i)  The
        Purchaser and Seller shall mutually select an impartial auditor (the “Initial
        Auditor”) to audit and determine, according to US GAAP, the gross revenues
        of Yinse for the period from June 1, 2008 through December 31, 2008 (the
        “2008Revenue”). Such determination shall be made within 90 days
        after December 31, 2008. Absent manifest error, such determination shall
        be
        final and conclusive. 

       

      (ii)  
        The
        aggregate Issue Price of the Share Consideration to be released to the Seller
        by
        the Escrow Agent upon determination of the 2008 Revenue shall be as
        follows:

       

      	(a)  	
              If
                the 2008 Revenue equals 90% or more of RMB 8.75 million (the “2008
                Target Revenue”), the aggregate Issue Price shall be USD5 million.
                

            

       

      	(b)  	
              If
                the 2008 Revenue equals less than 90% but more than 60%
                of the 2008 Target Revenue, the USD5 million aggregate Issue Price
                shall
                be reduced in accordance with the following calculation: USD5 million
                multiplied by (1 minus (the percentage shortfall from the 2008 Target
                Revenue minus 10%). For example, if the 2008 Revenue equals 80% of
                the
                2008 Target Revenue, the percentage shortfall is 20% and the aggregate
                Issue Price is calculated as follows: USD5,000,000 x (1-(0.20-0.10))
                =
                USD4.5 million, and the Seller would be entitled to receive the number
                of
                shares of Legend common stock equal to USD4.5 million divided by
                the Issue
                Price. 

            

       

      	(c)  	
              If
                the 2008 Revenue is equal to or less than 60%
                of the 2008 Target Revenue, the aggregate Issue Price shall be 0
                and none
                of the Share Consideration remaining with the Escrow Agent shall
                be
                released to the Seller.

            

       

      (iii)  
        After
        the release of Share Consideration, if any, to the Seller in accordance with
        this Section 1.05, all Share Consideration remaining with the Escrow Agent
        shall
        be released to the Purchaser. 

       

      
        
          
          

        

        
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      1.06.  Closing;
        Time and Place. Subject
        to the satisfaction or waiver of the conditions set forth in Sections 6 and
        7, the closing of the purchase and sale of the Purchased Shares (the “Closing”)
        shall take place on May 15, 2008 at 10:00 a.m., at 11F, Tower A, Building
        No. 1,
        GT International Center, Jia 3 Yongandongli, Jianguomenwai Avenue, Chaoyang
        District, Beijing, unless another place or time is agreed upon by the Purchaser
        and the Seller. The date upon which the Closing actually occurs is herein
        referred to as the “Closing Date”.

       

      1.07.  Deliveries
        by the Purchaser. At
        the
        Closing, the Purchaser shall deliver:

       

      (i)  to
        the
        Escrow Agent,
        a
        certificate or certificates representing the Share
        Consideration; and

       

      (ii)  to
        the
        Seller, a true and correct copy of the resolutions or minutes of the meetings
        of
        the board of directors of the Purchaser, and where required by applicable
        Laws,
        the shareholders of the Purchaser, or other relevant internal document
        evidencing approval of this Agreement and the matters contemplated hereby,
        certified by an authorized officer of the Purchaser.

       

      1.08.  Deliveries
        by the Seller.
        At the
        Closing, the following original certificates and documents shall be delivered
        to
        the Escrow Agent and released to the Purchaser on the same day when the Escrow
        Agent release the Cash Consideration and the Share Consideration to the Seller
        pursuant to the Section 1.04 of this Agreement, provided copies of such
        certificates and documents shall be delivered to the Purchaser on the Closing
        Date:

       

      (i)  The
        Purchased Shares.
        (1)
        A certificate
        representing the Purchased Shares, duly endorsed for transfer as required
        under
        applicable Laws;, and (2) duly executed instruments of transfer
        with
        respect to the Purchased Shares.

       

      (ii)  The
        Ancillary Agreements. The Seller shall deliver the Ancillary Agreements duly
        executed by the Seller Parties, as applicable.

       

      (iii)  The
        Resignation Letters. Duly executed letters of resignation by those current
        officers, directors, company secretaries and signatories, as applicable,
        of the
        Group Companies as directed by the Purchaser, in form and content acceptable
        to
        the Purchaser. 

       

      (iv)  Corporate
        Approvals of the Seller. A true and correct copy of the resolutions or
        minutes of the meetings of the Seller’s board of directors, and where required
        by applicable Laws, the Seller’s shareholders, or other relevant internal
        document evidencing approval of this Agreement and the matters contemplated
        hereby, certified by an authorized officer of the Seller. 

       

      (v)  Board
        Resolutions of the Company. A true and correct copy of the resolutions or
        minutes of a meeting of the Company’s board of directors or other relevant
        internal document evidencing approval of this Agreement and the matters
        contemplated hereby, certified by an authorized officer of the Company.

       

      
        
          
          

        

        
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      (vi)  Legal
        Opinion of the BVI Counsel . A legal opinion of the BVI counsel to the
        Company and the Seller on valid incorporation and good standing of the Company,
        the Seller, and any other issues as may be reasonably requested by the
        Purchaser.

       

      (vii)  Legal
        Opinion of the PRC Counsel. A legal opinion of the PRC counsel to the
        Company and the Seller on valid incorporation and existence of Yinse, the
        enforceability of the Yinse Contracts, and any other issues as may be reasonably
        requested by the Purchaser.

       

      (viii)  Share
        Register. A certified copy of the share register of the Company, certified
        by an officer of the Company and reflecting the Purchaser’s ownership of the
        Purchased Shares.

       

      (ix)  Compliance
        Certificate. Certificates signed by a duly authorized officer of the Seller
        and each of the Founders (in form and substance reasonably satisfactory to
        the
        Purchaser), dated as of the Closing Date, certifying that the matters set
        forth
        in Section 6.04
        have
        been fulfilled and are accurate and complete.

       

      Article
        2

       

      Representations
        and Warranties of the Seller
        and the Founders

       

      Subject
        to the exceptions set forth in the Disclosure Schedule, the Seller and the
        Founders hereby jointly and severally, represents and warrants to the Purchaser
        the following at the date of this Agreement and at the Closing Date;
provided,
        however,
        the
        representations and warranties made in respect of the Ancillary Agreements
        and
        the PRC Subsidiary under this Agreement shall be made at the Closing Date
        only:

       

      2.01.  Authority.
        The
        Seller is the sole and exclusive record holder of the Shares, free and clear
        of
        all Liens, and, there are no agreements, arrangements or understandings to
        which
        the Seller is a party (other than pursuant to this Agreement and the
        transactions contemplated hereby) involving the purchase, sale, voting, holding
        or other acquisition or disposition of the Shares or any interest therein.
        The
        Seller has fully paid for such Shares in accordance with applicable Laws,
        and
        the Shares are duly and validly issued.

       

      There
        is
        no action, suit, investigation, complaint or other proceeding pending against
        the Seller or, to the knowledge of the Seller or the Founders, threatened
        against the Seller or the Founders or any other Person that restricts in
        any
        respect or prohibits (or, if successful, would restrict or prohibit) the
        exercise by any Party or beneficiary of its rights under this Agreement or
        the
        performance by any Party of its obligations under this Agreement.

       

      The
        Seller and the Founders do not have any pre-emptive rights, rights of first
        refusal, co-sale rights or similar rights in respect of the Company or the
        Shares. In furtherance and not in limitation of the foregoing, the Seller
        and
        the Founders hereby waive any and all pre-emptive rights, rights of first
        refusal, co-sale rights or similar rights, as well as any entitlements to
        liquidation preferences or other preferences contemplated under the memorandum
        and articles of association of the Company or otherwise, to the extent that
        any
        such rights or preferences would be inconsistent with the transactions set
        forth
        in this Agreement or the Ancillary Agreements.

       

      
        
          
          

        

        
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      Each
        of
        the Founder, Seller and Group Company has all requisite corporate or other
        power
        and authority to execute and deliver this Agreement and the Ancillary Agreements
        to which it is a party and to perform the transactions contemplated by this
        Agreement and the Ancillary Agreements. The execution and delivery of this
        Agreement and the Ancillary Agreements to which such Party is a party and
        the
        performance by such Party of its obligations hereunder and thereunder, has
        been
        duly and validly authorized and no other corporate action on the part of
        such
        Party is necessary. This Agreement and the Ancillary Agreements, upon the
        execution and delivery by each of the Founders, Seller and Group Company
        (assuming due and valid execution and delivery by the Purchaser), will
        constitute legal, valid and binding obligations enforceable against such
        Party
        in accordance with their terms. 

       

      2.02.  Tax
        Matters.
        Each of
        the Seller and the Founders represents and warrants that the Seller or the
        Founders has had an opportunity to review with its own tax advisors the tax
        consequences to the Seller or the Founders of the sale of the Purchased Shares
        and the other transactions contemplated by this Agreement. Each of the Seller
        and the Founders understands that it must rely solely on its advisors and
        not on
        any statements or representations by the Purchaser, each Group Company or
        any of
        their respective agents. Each of the Seller and the Founders understands
        that,
        unless otherwise required under this Agreement, it shall be responsible for
        its
        own tax liability under relevant Law that may arise from the sale of the
        Purchased Shares and the other transactions contemplated by this
        Agreement.

       

      2.03.  Reliance
        by the Purchaser. Each of the Seller and the Founders understands and
        acknowledges that the Purchaser is entering into this Agreement in reliance
        upon
        the representations and warranties and covenants of the Seller Parties made
        herein (subject to the exceptions and disclosures contained in the Disclosure
        Schedule).

       

      2.04.  The
        Company

       

      (i)  Organization.
        The
        Company is an international business company duly incorporated, validly existing
        and in good standing under the Laws of the British Virgin Islands and has
        full
        corporate power and authority to conduct its business as now conducted and
        to
        own, use and lease its Assets and Properties. Except
        for the HK Company, the Company has no other subsidiaries or branches. There
        are
        no other companies, partnerships, joint ventures, associations or other entities
        in which the Company, of record or beneficially, has any direct or indirect
        equity or other interest or any right (contingent or otherwise) to acquire
        the
        same. The Company has not engaged in any substantive business since its
        incorporation.

       

      (ii)  Company
        Share Capital. The total authorized share capital of the Company consists of
        50,000 ordinary shares. The Shares are duly authorized, validly issued, fully
        paid and non-assessable and are owned, of record by the holders thereof free
        and
        clear of all Liens, and were either issued in accordance with all applicable
        securities Laws or pursuant to exemptions therefrom. There are no outstanding
        Options with respect to the Company. There are no currently outstanding offers
        to provide Options made by the Company that as at the date hereof have not
        been
        issued or granted. The Shares are not subject to and have not been issued
        in
        violation of any purchase option, call option, right of first refusal,
        preemptive right, subscription right or any similar right under any Laws,
        the
        charter documents or any contract to which the Company is a party or otherwise
        bound. There
        are
        no bonds, debentures, notes or other indebtedness of the Company having the
        right to vote (or convertible into, or exchangeable for, securities having
        the
        right to vote) on any matters on which holders of equity interests of the
        Company may vote. There are no voting trusts, shareholder agreements, proxies
        or
        other agreements or understandings in effect with respect to the voting or
        transfer of any of the equity interests to which the Company is a party or
        is
        otherwise bound. There is no outstanding equity or similar securities of
        the
        Company or any rights to acquire such securities of the Company.

       

      
        
          
          

        

        
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      2.05.  The
        HK
        Company

       

      (i)  Organization.
        The HK
        Company is duly incorporated, validly existing and in good standing under
        the
        Laws of the Hong Kong and has full corporate power and authority to conduct
        its
        business as now conducted and to own, use and lease its Assets and Properties.
        Except for the PRC Subsidiary, the HK Company has no other subsidiaries or
        branches. There are no other companies, partnerships, joint ventures,
        associations or other entities in which the Company, of record or beneficially,
        has any direct or indirect equity or other interest or any right (contingent
        or
        otherwise) to acquire the same. The HK Company has not engaged in any
        substantive business since its incorporation.

       

      (ii)  HK
        Company Share Capital. The total authorized share capital of the Company
        consists of 10,000 ordinary shares. The shares outstanding as at the date
        of
        this Agreement are duly authorized, validly issued, fully paid and
        non-assessable and are owned, of record by the holders thereof free and clear
        of
        all Liens, and were either issued in accordance with all applicable securities
        Laws or pursuant to exemptions therefrom. There are no outstanding Options
        with
        respect to the HK Company. There are no currently outstanding offers to provide
        Options made by the HK Company that as at the date hereof have not been issued
        or granted. The shares are not subject to and have not been issued in violation
        of any purchase option, call option, right of first refusal, preemptive right,
        subscription right or any similar right under any Laws, the charter documents
        or
        any contract to which the Company is a party or otherwise bound. 

       

      2.06.  The
        PRC
        Subsidiary. 

       

      (i)  The
        PRC
        Subsidiary is a corporation duly organized and validly existing under the
        Laws
        of the PRC, and has full corporate power and authority to conduct its business
        as now conducted and to own, use and lease its Assets and Properties. The
        PRC
        Subsidiary is duly qualified, licensed or admitted to do business in the
        PRC.
        All such registered capital has been duly authorized and is fully paid and
        is
        owned, of record or beneficially, by the HK Company free and clear of all
        Liens.
        There are no outstanding Options with respect to the PRC Subsidiary. The
        PRC
        Subsidiary does not have any subsidiaries, branches or representative offices.
        The PRC Subsidiary has not engaged in any substantive business since its
        incorporation.

       

      (ii)  The
        equity interests in the PRC Subsidiary are not subject to or issued in violation
        of any purchase option, call option, right of first refusal, preemptive right,
        subscription right or any similar right under any PRC Laws, the charter
        documents or any contract to which the PRC Subsidiary is a party or otherwise
        bound. 

       

      
        
          
          

        

        
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      2.07.  Yinse.
        

       

      (i)  Section
        2.07
        of the Disclosure Schedule lists the name of Yinse and all lines of business
        in which Yinse is engaged. Yinse is a corporation duly organized and validly
        existing under the Laws of the PRC, and has full corporate power and authority
        to conduct its business as now and proposed to be conducted and to own, use
        and
        lease its Assets and Properties. 

       

      (ii)  Yinse
        is
        duly qualified, licensed or admitted to do business in the PRC. The registered
        capital of Yinse has been duly authorized and is fully paid and is owned
        by the
        holders thereof free and clear of all Liens. There are no outstanding Options
        with respect to Yinse. Yinse does not have any subsidiaries, branches or
        representative offices. 

       

      (iii)  All
        the
        equity interests in Yinse are owned by the Founders and are not subject to
        or
        issued in violation of any purchase option, call option, right of first refusal,
        preemptive right, subscription right or any similar right under any PRC Laws,
        the charter documents or any contract to which Yinse or a Founder is a party
        or
        otherwise bound. 

       

      (iv)  No
        penalty has been imposed on Yinse by the relevant PRC governmental authorities
        due to its failure to comply with applicable Laws.

       

      2.08.  Governmental
        Approvals and Filings. No consent, approval or action of, filing with or
        notice to any Governmental Authority on the part of the Seller Parties is
        required in connection with the execution, delivery and performance of this
        Agreement or any of the Ancillary Agreements to which it is a party or the
        consummation of the transactions contemplated hereby or thereby.

       

      2.09.  Compliance
        with Laws and Orders. None of the Group Companies is or has at any time
        received any notice that it is or has at any time been, in any violation,
        breach
        or default of any term of its articles of association, or of any provision
        of
        Contract, or any PRC Laws applicable to or binding upon the Group Company
        or its
        Assets and Properties (as the case may be). 

       

      2.10.  Licenses.
        All
        consents, approvals, permits or Licenses required for the operation of the
        business of the Group Company have been obtained. The Group Company has at
        all
        times carried on its business in compliance with all applicable Laws. Neither
        the Group Company nor any of its directors, shareholders, and officers has
        committed any criminal offence or any breach of the requirements or conditions
        of any statute, treaty, legislation or regulation in the course of carrying
        on
        the Group Company’s business. The Group Company is not the subject of any
        ongoing or threatening inquiry that would have an adverse effect by any
        governmental or regulatory body. 

       

      Each
        License is valid, binding and in full force and effect; and no Group Company
        is
        or has at any time been, or has received any notice that it is or has at
        any
        time been, in default (or with the giving of notice or lapse of time or both,
        would be in default) under any such License.

       

      
        
          
          

        

        
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      2.11.  Contracts. 

       

      (i)  Section
        2.11
        of the Disclosure Schedule contains a true and complete list of each of the
        all Contracts, to which any Group Company is a party or by which any of its
        respective Assets and Properties is bound (including material Contracts that
        have expired by their terms or otherwise terminated but have liabilities
        that
        continue to attach to such Group Company):

       

      (ii)  The
        Seller has delivered to the Purchaser true and complete copies (or, if not
        in
        writing, reasonably complete and accurate written descriptions) of each Contract
        or other arrangement required to be listed on Section 2.11 of the Disclosure
        Schedule, together with all amendments and supplements thereto.

       

      (iii)  Each
        Contract to which each Group Company is a party is in full force and effect
        and
        constitutes a legal, valid and binding agreement, enforceable in accordance
        with
        its terms, of each party thereto; and neither any Group Company nor, to the
        knowledge of the Seller Parties, any other party to such Contract is, or
        has
        received notice that it is, in violation or breach of or default under any
        such
        Contract (or with notice or lapse of time or both, would be in violation
        or
        breach of or default under any such Contract) or that another party to a
        Contract listed in Section 2.11 of the Disclosure Schedule intends to
        cancel, terminate or refuse to renew such Contract. 

       

      (iv)  No
        Group
        Company is a party to or bound by any Contract that could result, individually
        or in the aggregate with any other such Contracts, in a Business Material
        Adverse Effect.

       

      2.12.  Real
        Property. 

       

      (i)  Each
        Group Company, as applicable, is in possession as lessee of each parcel of
        real
        property, together with all facilities, fixtures and other improvements thereon,
        and in each case such lease is, to the knowledge of the Group Companies,
        free
        and clear of all Liens. To the knowledge of the Group Companies, none of
        the use
        of such real property, facilities, fixtures or other improvements contravenes
        or
        violates any occupational safety and health or other applicable Law in any
        material respect. 

       

      (ii)  Each
        Group Company, as applicable, has a valid and subsisting leasehold estate
        in and
        the right to quiet enjoyment of the real properties used by it for the full
        term
        of the lease. Each lease referred to in paragraph above is a legal, valid
        and
        binding agreement of the applicable Group Company, enforceable in accordance
        with its terms, and to the knowledge of the Group Companies, is a legal,
        valid
        and binding agreement of each other Person that is a party thereto, and no
        Group
        Company has received notice of any default (or any condition or event which,
        after notice or lapse of time or both, would constitute a default)
        thereunder.

       

      (iii)  Prior
        to
        the execution of this Agreement, each Group Company has delivered to the
        Purchaser true and complete copies of all leases (including any amendments
        and
        renewal letters).

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      (iv)  No
        Group
        Company is a lessor under any lease, sublease, tenancy or license of, or
        entered
        into any rental agreement with respect to, any portion of the real property
        referred to in paragraph.

       

      2.13.  Insurance.
        No
        commercial insurance is used or necessary in the conduct of the business
        of the
        Group Companies.

       

      2.14.  Taxes.
        All Tax
        Returns required to be filed in respect of each Group Company have been duly
        and
        timely filed, have been prepared in compliance with all applicable Laws,
        and are
        true, correct and complete. All Taxes due and payable by each Group Company,
        whether or not shown as due on such Tax Returns, have been fully paid when
        due.

       

      2.15.  Legal
        Proceedings. There are no:

       

      (i)  Actions
        or Proceedings pending or, to the knowledge of the Seller or any Group Company,
        threatened against any of the Group Companies or any of their respective
        Assets
        and Properties;

       

      (ii)  Orders
        outstanding against any of the Group Companies; or

       

      (iii)  to
        the
        knowledge of the Seller Parties, facts or circumstances known to any of the
        Group Companies that could reasonably be expected to give rise to any Action
        or
        Proceeding that would be required to be disclosed pursuant to
        clause (i)
        or
(ii) above.

       

      2.16.  Affiliate
        Transactions.
        Except
        for the Ancillary Agreements, as at the date of this Agreement, (i) there
        are no inter-company Liabilities between a Group Company, on the one hand,
        and
        the Seller, or officer, director or Affiliate of the Seller, on the other,
        (ii) neither the Seller, nor any such officer, director or Affiliate
        provides or causes to be provided any assets, services or facilities to the
        Group Companies, (iii) no Group Company provides or causes to be provided
        any
        assets, services or facilities to the Seller or any officer, director or
        Affiliate of the Seller and (iv) no Group Company beneficially owns,
        directly or indirectly, any Investment Assets of the Seller or any such officer,
        director or Affiliate of the Seller. 

       

      2.17.  Employees;
        Labor Relations. 

       

      The
        Group
        Companies have complied with all applicable Laws relating to the employment
        of
        labor. 

       

      2.18.  Bank
        and Brokerage Accounts; Investment Assets. Section 2.18 of the Disclosure
        Schedule sets forth a true and complete list of the names and locations
        of all banks, trust companies, securities brokers and other financial
        institutions at which any Group Company has an account or safe deposit box
        or
        maintains a banking, custodial, trading or other similar
        relationship. 

       

      2.19.  Brokers.
        All
        negotiations relative to this Agreement and the transactions contemplated
        hereby
        have been carried out by the Seller directly with the Purchaser without the
        intervention of any Person on behalf of the Seller in such manner as to give
        rise to any valid claim by any Person against the Purchaser, or any of the
        Seller Parties for a finder’s fee, brokerage commission or similar
        payment.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      2.20.  Assets
        and Properties. The Group Company has good and marketable title to its owned
        properties and assets free and clear of liens or encumbrance. All facilities,
        machinery, equipment, fixtures, vehicle and other properties owned, leased
        or
        used by the Group Company are in good operating condition and repair, ordinary
        wear and tear excepted, and are reasonably fit and usable for purposes for
        which
        they are being used.

       

      2.21.  No
        Insolvency. No order has been made or petition presented or resolution
        passed for the winding up of a Group Company. None of the Group Companies
        is
        insolvent or unable to pay its debts as and when due.

       

      2.22.  No
        Conflicts. The execution, delivery and performance by each of the Founders
        and the Seller of this Agreement and the Ancillary Agreements to which such
        Person is a party and the consummation of the transactions contemplated hereby
        and thereby will not:

       

      (i)  conflict
        with or result in a violation or breach of any of the provisions of the
        memorandum and articles of association (or other comparable corporate charter
        documents) of the Seller and Group Company;

       

      (ii)  conflict
        with or result in a violation of any Law or Order applicable to the Seller,
        the
        Founders and Group Company or any of its Assets and Properties; or 

       

      (iii)  (a) conflict
        with or result in a violation of, (b) constitute (with or without notice or
        lapse of time or both) a default under, (c) require the Founders, the
        Seller and Group Company to obtain any consent, approval or action of, make
        any
        filing with or give any notice to any Person as a result or under the terms
        of,
        (d) result in or give to any Person any right of termination, cancellation,
        acceleration or modification in or with respect to or result in any loss
        of
        benefit under or with respect to, (e) result in or give to any Person any
        additional rights or entitlement to increased, additional, accelerated or
        guaranteed payments under, or (f) result in the creation or imposition of
        any Lien upon a Group Company or any of its respective Assets and Properties,
        under any Contract or License to which such Group Company is a party or by
        which
        any of its respective Assets and Properties is bound or any Law or Order
        applicable to a Group Company or any of its respective Assets and
        Properties.

       

      2.23.  No
        Dividend or Other Distribution.
        No
        dividend or other distribution has occurred since its establishment with
        respect
        to any of the Group Companies.

       

      2.24.  No
        Undisclosed Liabilities. There are no Liabilities against, relating to or
        affecting the Group Company or any of its Assets and Properties, other than
        Liabilities incurred in the ordinary course of business consistent with past
        practice. No Group Company is a guarantor, indemnitor, surety or other obligor
        of any indebtedness of any other Person.
        No Group
        Company has any interest payment obligation, including, without limitation,
        bank
        debt. Except as set forth in Section 2.24 of Disclosure Schedule, there
        is no capital commitment (including, without limitation, off-balance sheet
        capital commitment) for any Group Company.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      2.25.  No
        Powers of Attorney. Except as set forth in Section 2.25 of the Disclosure
        Schedule, no Group Company has any powers of attorney or comparable delegations
        of authority outstanding.

       

      2.26.  Absence
        of Changes. Except for the execution and delivery of this Agreement and the
        transactions to take place pursuant hereto on the Closing Date, since the
        establishment of the Group Companies there has not been any Business Material
        Adverse Effect on the Group Companies and none of the actions set forth in
        Section 4.05 has occurred except as otherwise agreed in writing by the Purchaser
        or as requested by the Purchaser. Without limiting the foregoing, there has
        not
        occurred since the establishment of the Group Companies until the date
        hereof:

       

      (i)  any
        (a) amendment of the memorandum and articles of association (or other
        comparable corporate charter documents) of, or (b) reorganization,
        liquidation or dissolution of any Group Company;

       

      (ii)  any
        capital expenditure, commitments for additions to property, plant, equipment
        or
        license of any Group Company constituting capital assets in an aggregate
        amount
        exceeding Ten Thousand US Dollars (US$10,000);

       

      (iii)  any
        entry
        into any exclusive distribution, marketing, sales or other similar agreement
        with any third person whereby any Group Company has granted any third party
        exclusivity right;

       

      (iv)  any
        material communication with a Governmental Authority;

       

      (v)  any
        transaction by a Group Company with the Seller, any officer, director or
        Affiliate of the Seller (a) outside the ordinary course of business
        consistent with past practice or (b) other than on an arm’s-length basis;

       

      (vi)  any
        material change in (a) any accounting, financial reporting, or Tax practice
        or policy of any Group Company or (b) the fiscal year of any Group
        Company;

       

      (vii)  any
        entering into of an agreement to do or engage in any of the foregoing after
        the
        date hereof, except as contemplated by this Agreement; or

       

      (viii)  any
        other
        transaction involving or affecting a Group Company outside the ordinary course
        of business consistent with past practice.

       

      2.27.  Disclosure.
        The
        Seller Parties have provided the Purchaser with all information that the
        Purchaser has requested (for deciding whether to acquire the Purchased Shares).
        The Seller Parties have provided the Purchaser with all information that,
        to the
        best knowledge of the Seller Parties, may materially and adversely impact
        the
        business and financial condition of the Yinse. The Seller Parties have not
        been
        aware of any fact which has not been disclosed to Purchaser, which could
        have a
        Business Material Adverse Effect on Yinse. If any of the representations
        and
        warranties by the Seller and the Founders in this Agreement, any of the other
        statements or certificates or other materials made or delivered to the Purchaser
        at any time in connection herewith, or materials provided to the Purchaser
        in
        connection with its due diligence, becomes untrue or misleading in any material
        respect, the Seller Parties shall, and shall promptly notify the Purchaser
        in
        writing of such fact and of the reasons for such change. 

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      No
        representation or warranty contained in this Agreement, and no statement
        contained in the Disclosure Schedule, contains any untrue statement of a
        material fact or omits to state a material fact necessary in order to make
        the
        statements herein or therein, in the light of the circumstances under which
        they
        were made, not misleading.
        Any
        certificate, list or other writing furnished to the Purchaser and/or its
        Affiliates and representatives is a genuine and truthful copy of the original
        copy. 

       

      Article
        3

       

      Representations
        and Warranties of the Purchaser

       

      The
        Purchaser hereby represents and warrants the following to the Seller and
        the
        Founders as at the date of this Agreement and as at the Closing
        Date:

       

      3.01.  Authorization
        by the Purchaser.
        The
        execution and delivery by the Purchaser of this Agreement and the Ancillary
        Agreements to which it is a party, and the performance by the Purchaser of
        its
        obligations hereunder and thereunder, have been duly and validly authorized
        by
        the board of directors of the Purchaser, no other corporate action on the
        part
        of the Purchaser or its shareholders being necessary. This Agreement has
        been
        duly and validly executed and delivered by the Purchaser and constitutes
        (assuming due and valid execution and delivery by the Seller Parties), and
        upon
        the execution and delivery by the Purchaser of the Ancillary Agreements to
        which
        it is a party, such Ancillary Agreements will constitute, legal, valid and
        binding obligations of the Purchaser enforceable against the Purchaser in
        accordance with their terms. 

       

      3.02.  Organization.
        The Purchaser is a corporation duly organized, validly existing under the
        Laws
        of its jurisdiction of formation. On the Closing Date and subject to other
        provisions of this Agreement, the Purchaser has full corporate power and
        authority to execute and deliver this Agreement and the Ancillary Agreements
        to
        which it is a party, to perform its obligations hereunder and thereunder
        and to
        consummate the transactions contemplated hereby and thereby. The Purchaser
        is
        duly qualified, licensed or admitted to do business in all jurisdictions,
        in
        which the ownership, use or leasing of its Assets and Properties, or the
        conduct
        or nature of its business, makes such qualification, licensing or admission
        necessary and in which the failure to be so qualified, licensed or admitted
        could reasonably be expected to have an adverse effect on the validity or
        enforceability of this Agreement or any of the Ancillary Agreements to which
        it
        is a party or on the ability of the Purchaser to perform its obligations
        hereunder or thereunder.

       

      3.03.  No
        Conflicts. The execution and delivery by the Purchaser of this Agreement
        does not, and the execution and delivery by the Purchaser of the Ancillary
        Agreements to which it is a party, the performance by the Purchaser of its
        obligations under this Agreement and such Ancillary Agreements and the
        consummation of the transactions contemplated hereby and thereby will
        not:

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      (i)  conflict
        with or result in a violation or breach of any of the terms, conditions or
        provisions of the organizational documents of the Purchaser, as the case
        may
        be;

       

      (ii)  conflict
        with or result in a violation or breach of any term or provision of any Law
        or
        Order applicable to the Purchaser or any of its respective Assets and Properties
        to the extent that such conflict, violation or breach would have a material
        adverse effect on the ability of the Purchaser to perform its obligations
        under
        this Agreement; or

       

      (iii)  require
        the Purchaser to obtain any consent, approval or action of, make any filing
        with
        or give any notice to any Person as a result or under the terms of any Contract
        or License to which the Purchaser is a party or by which any of its Assets
        and
        Properties is bound.

       

      3.04.  No
        Insolvency.
        No
        order has been made or petition presented or resolution passed for the winding
        up of the Purchaser. The Purchaser is not insolvent or unable to pay its
        debts
        as and when due and there is no unfulfilled insolvency-related decree or
        court
        order outstanding against the Purchaser.

       

      3.05.  Brokers.
        No broker, finder or investment banker is entitled to any brokerage, finder’s or
        other fee or commission in connection with the transactions contemplated
        by this
        Agreement based upon arrangements made by or on behalf of the
        Purchaser.
        Notwithstanding anything to the contrary of this Agreement, the Purchaser
        agrees
        to bear its own cost for such finder’s fee, brokerage commission or similar
        payment, if any.

       

      3.06.  Consideration
        Shares. The Share Consideration has been duly authorized, and when delivered
        in accordance with the terms of this Agreement, will be duly and validly
        issued,
        fully paid and non-assessable and will be free of restrictions on transfer
        other
        than the Lock-in and orderly market conditions or otherwise as contemplated
        under this Agreement. 

       

      3.07.  Litigation.
        As at the date hereof, no Action by or against the Purchaser is pending or,
        to
        the knowledge of the Purchaser, threatened, which could affect the legality,
        validity or enforceability of this Agreement, any of the Ancillary Agreements
        or
        the consummation of the transactions contemplated hereby or
        thereby.

       

      Article
        4

       

      Covenants
        of the Seller
        Parties

       

      Except
        as
        expressly set forth in this Article 4 or otherwise consented to by the
        Purchaser, the Seller and the Founders covenant and agree with the Purchaser
        that, at all times from and after the date hereof until the earlier of (a)
        the
        Closing Date and (b) the termination of this Agreement, except otherwise
        stipulated in this Agreement, the Seller and the Founders will comply with
        all
        covenants and provisions of this Article 4. For the purposes of this
        Article 4, the parties understand and agree that under all circumstances
        where
        the Seller and the Founders covenant to cause the Group Companies to take,
        or
        refrain from taking a particular action, each of the Seller and the Founders
        agree to exercise all control and power over the Group Companies available
        to
        the Seller and the Founders (whether by virtue of office, directorship,
        shareholder status, contract or otherwise) in order to cause the Group Companies
        to take, or refrain from taking, the specified action, provided that neither
        the
        Seller nor the Founders shall be obligated to exercise any control or power
        not
        available to it. 

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      4.01.  Investigation
        by the Purchaser.
        The
        Seller and
        the
        Founders will, and will cause the Group Companies to, (i) provide the
        Purchaser and its officers, directors, key employees, agents, counsel,
        accountants, financial advisors, consultants and other representatives with
        reasonable access, upon reasonable prior notice and during normal business
        hours, to all officers, employees, agents and accountants of the Group Companies
        and their Assets and Properties and books and records, and (ii) furnish the
        Purchaser and such other Persons with all such information and data (including
        copies of Contracts and other books and records) concerning the business
        and
        operations of the Group Companies as the Purchaser or any of such other Persons
        may reasonably request in connection with such investigation.

       

      4.02.  Conduct
        of Business. The Group Companies shall, and the Seller and
        Founders will
        cause the Group Companies to, conduct business only in the ordinary course
        consistent with past practice. Without limiting the generality of the foregoing,
        the Group Companies shall, and the Seller and
        Founders will
        cause the Group Companies to:

       

      (i)  (a) preserve
        intact the present business organization and reputation of the Group Companies,
        (b) keep available (subject to dismissals, resignations and retirements in
        the ordinary course of business consistent with past practice) the services
        of
        the present officers, employees and consultants of the Group Companies,
        (c) maintain the Assets and Properties of the Group Companies in good
        working order and condition, ordinary wear and tear excepted, (d) maintain
        the goodwill of customers, suppliers, lenders and other Persons to whom the
        Group Companies provide services or with whom any Group Company otherwise
        has a
        significant business relationship, and (e) continue all current sales,
        marketing and promotional activities relating to the business and operations
        of
        the Group Companies;

       

      (ii)  comply,
        in all respects, with all Laws and Orders applicable to them and promptly
        following receipt thereof give the Purchaser copies of any notice received
        from
        any Governmental Authority or other Person alleging any violation of any
        such
        Laws or Order.

       

      4.03.  Notice
        and Cure.
        The
        Seller Parties will notify the Purchaser promptly in writing of, and
        contemporaneously will provide the Purchaser with true and complete copies
        of
        any and all information or documents relating to, and will use all commercially
        reasonable efforts to cure before the Closing, any event, transaction or
        circumstance occurring after the date of this Agreement that causes or will
        cause any covenant or agreement of any of the Seller Parties under this
        Agreement to be breached or that renders or will render untrue in all
        respects
        any representation or warranty of the Seller Parties contained in this Agreement
        as if the same were made on or as at the date of such event, transaction
        or
        circumstance. The Seller Parties also will notify the Purchaser promptly
        in
        writing of, and to the extent requested by the Purchaser, will use all
        commercially reasonable efforts to cure, before the Closing, any violation
        or
        breach of any representation, warranty, covenant or agreement made by a Seller
        Party in this Agreement, whether occurring or arising before, on or after
        the
        date of this Agreement. 

       

      4.04.  Fulfillment
        of Conditions. The Seller Parties will execute and deliver at the Closing
        each Ancillary Agreement and other document or certificate that such Seller
        Party is required hereby to execute and deliver as a condition to the Closing,
        will take all commercially reasonable steps necessary or desirable and proceed
        diligently and in good faith to satisfy each other condition to the obligations
        of the Purchaser contained in this Agreement and will not, and will not permit
        the Seller Parties to take or fail to take any action that could reasonably
        be
        expected to result in the non-fulfillment of any such condition. Each of
        the
        Seller Parties will take any other action required to authorize, approve
        and
        make effective the Transactions in accordance with applicable Law. 

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      4.05.  Certain
        Restrictions. Except as otherwise agreed in writing by the Purchaser, the
        Group Companies shall, and the Seller and the Founders shall cause the Group
        Companies to refrain from:

       

      (i)  authorizing,
        issuing, selling or otherwise disposing of any capital shares with respect
        to
        any Group Company, or effecting any share split or other change in the
        capitalization of any Group Company, or modifying or amending any right of
        (a)
        any holder of outstanding capital shares with respect to any Group Company
        or
        (b) any holder of rights to acquire capital shares with respect to any Group
        Company; 

       

      (ii)  declaring,
        setting aside or paying any dividend or other distribution in respect of
        any
        capital shares of any Group Company;

       

      (iii)  
        (a) entering into, amending, modifying, terminating (partially or
        completely), granting any waiver under or giving any consent with respect
        to (1)
        any Contract or (2) any License or (b) granting any irrevocable powers of
        attorney, in each case other than in the ordinary course of business consistent
        with past practice;

       

      (iv)  violating,
        breaching or defaulting under in any respect, or taking or failing to take
        any
        action that (with or without notice or lapse of time or both) would constitute
        a
        violation or breach of, or default under, any term or provision of any License
        held or used by the Group Companies or any Contract to which any of the Group
        Companies is a party or by which any of their respective Assets and Properties
        is bound;

       

      (v)  (a) incurring
        any additional Indebtedness (other than Indebtedness incurred in the ordinary
        course of business), or (b) voluntarily purchasing, canceling, prepaying or
        otherwise providing for a complete or partial discharge in advance of a
        scheduled payment date with respect to, or waiving any right of any of the
        Group
        Companies under, any Indebtedness of or owing to any of them (other than
        Indebtedness incurred in the ordinary course of business);

       

      (vi)  making
        capital expenditures or commitments for additions to property, plant or
        equipment in an aggregate amount exceeding Ten Thousand US Dollars (US$10,000);
        

       

      (vii)  making
        any change in the lines of business in which they participate or are engaged
        which would result in a Business Material Adverse Effect; or

       

      (viii)  entering
        into any agreement to do or engage in any of the foregoing.

       

      4.06.  Post-Closing
        Covenants.
        The
        Founders covenant as follows:

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      (i)  From
        the
        date hereof until the earlier of the third anniversary of the date of this
        Agreement or the termination of the Founder’s employment with any of the Group
        Companies or any of their Affiliates, the Founders shall use best efforts
        to
        assist the Group Companies to:

       

      	(a)  	
              promptly
                procure and maintain all required Licenses to operate the business
                of the
                Group Companies (including Yinse’s registration of its branch office and
                update of its business license to reflect its branch offices) and
                shall
                not take or fail to take any action that results in, or would be
                reasonably likely to result in, the revocation or non-renewal of
                the
                Licenses of Yinse, or that would otherwise cause or result in the
                commencement of Actions or Proceedings by any governmental authorities
                that would be reasonably likely to result in a Business Material
                Adverse
                Effect on the Group Companies; and 

            

       

      	(b)  	
              unless
                otherwise expressly agreed by the Purchaser in writing, promptly
                file with
                the applicable PRC tax authority all required submissions, applications
                and other documents.

            

       

      (ii)  The
        Founders shall not sell, transfer or encumber the remaining Shares owned
        by the
        Founders without the prior written consent of the Purchaser.

       

      (iii)  Mr.
        Ju
        Baochun agrees and acknowledges that he will serve as executive management
        of
        Legend, subject to duty of care and duty of loyalty applicable to management
        of
        a public reporting company, including, without limitation, to refrain from
        engaging in any affiliated transaction or disclosing any non-public information
        of Legend and/or its Affiliates, conducting any activity that may be competitive
        with the current or proposed business of any of the Group Companies or Legend
        without the approval of the board of directors of Legend. Mr. Ju Baohcun
        agrees
        to cause any of his Affiliates to abide by the obligations under this
        paragraph.

       

      (iv)  The
        Founders and their Affiliates will not engage in any business related to
        radio
        advertising, including, without limitation, the obtaining of rights from
        any
        radio station, except as conducted through the PRC Subsidiary, Yinse or another
        newly-formed entity, the revenues and profits of which may be consolidated
        into
        the financial statements of Legend according to US GAAP.

       

      (v)  Notwithstanding
        the immediately foregoing subsections (iii) and (iv), the Parties acknowledge
        and agree to the following: 

       

      	(a)  	
              One
                Affiliate of Mr. Ju is engaged in the general advertising business,
                and
                such Affiliate may from time to time place radio advertisements on
                behalf
                of its clients, provided such advertisements are with radio stations
                that
                broadcast outside the current or proposed coverage area or territory
                of
                any of the Group Companies and their
                Affiliates.

            

       

      	(b)  	
               One
                Affiliate of Mr. Ju has entered into an exclusive agency agreement
                with a
                Beijing-based national radio channel. Legend is currently in negotiations
                with Mr. Ju regarding a transaction with such Affiliate. During the
                period
                prior to the consummation of such transaction, the operations of
                such
                Affiliate will not constitute a breach of this Agreement, provided
                that
                such consummation is not unreasonably delayed and in any event occurs
                prior to July 31, 2008.

            

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      (vi)  The
        Founders agree that the Share Consideration shall be subject to a 12-month
        Lock-in, starting from the issuance date of such Share Consideration, and
        that
        after the expiration of such Lock-in period, upon consultation with the broker
        of the Purchaser or Legend, the Founders shall sell such Share Consideration
        in
        a manner which maintains an orderly market in Legend's shares.

       

      ARTICLE
        5

       

      Covenants
        of the Purchaser 

       

      The
        Purchaser covenants
        and agrees with the Seller that, at all times from and after the date hereof
        until the Closing, the Purchaser will comply with all covenants and provisions
        of this Article 5, except to the extent the Seller may otherwise consent in
        writing.

       

      5.01.  Fulfillment
        of Conditions.
        The
        Purchaser will execute and deliver at the Closing each Ancillary Agreement
        that
        the Purchaser is hereby required to execute and deliver as a condition to
        the
        Closing, will take all commercially reasonable steps necessary or desirable
        and
        proceed diligently and in good faith to satisfy each other condition to the
        obligations of the Seller contained in this Agreement and will not take or
        fail
        to take any action that could reasonably be expected to result in the
        non-fulfillment of any such condition.

       

      5.02.  Notice
        and Cure. The Purchaser will notify the Seller and the Founders promptly in
        writing of, and contemporaneously will provide the Seller with true and complete
        copies of any and all information or documents relating to, and will use
        all
        commercially reasonable efforts to cure before the Closing, any event,
        transaction or circumstance occurring after the date of this Agreement that
        causes or will cause any covenant or agreement of the Purchaser under this
        Agreement to be breached or that renders or will render untrue any
        representation or warranty of the Purchaser contained in this Agreement as
        if
        the same were made on or as at the date of such event, transaction or
        circumstance. The Purchaser also will notify the Seller and the Founders
        promptly in writing of, and will use all commercially reasonable efforts
        to
        cure, before the Closing, any violation or breach of any representation,
        warranty, covenant or agreement made by the Purchaser in this Agreement,
        whether
        occurring or arising before, on or after the date of this Agreement. No notice
        given pursuant to this Section 5.02
        shall
        have any effect on the representations, warranties, covenants or agreements
        contained in this Agreement for purposes of determining satisfaction of any
        condition contained herein or shall in any way limit the Seller’s right to seek
        indemnity under Article10.

       

      5.03.  Shareholders
        Approval. In the event that the approval of shareholders of the Purchaser is
        required in order for the transactions contemplated under this Agreement
        and the
        Ancillary Agreements to be consummated, the Purchaser shall use its best
        efforts
        to obtain such approval within thirty (30) days after the date of this
        Agreement. 

       

      
        
          
          

        

        
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      ARTICLE
        6

       

      Conditions
        to Obligations of the Purchaser

       

      The
        obligations of the
        Purchaser hereunder are subject to the fulfillment, at or before the Closing,
        of
        each of the following conditions (all or any of which may be waived in whole
        or
        in part by the Purchaser in its sole discretion):

       

      6.01.  Regulatory
        Consents and Approvals.
        As at
        the Closing Date, all consents, approvals and actions of, filings with and
        notices to any Governmental Authority necessary to permit the Seller to perform
        its obligations under this Agreement and the Ancillary Agreements and to
        consummate the transactions contemplated hereby and thereby (a) shall have
        been duly obtained, made or given, (b) shall be in form and substance
        reasonably satisfactory to the Purchaser (c) shall not be subject to the
        satisfaction of any condition that has not been satisfied or waived and
        (d) shall be in full force and effect, and all terminations or expirations
        of waiting periods imposed by any Governmental Authority necessary for the
        consummation of the transactions contemplated by this Agreement and the
        Ancillary Agreements shall have occurred.

       

      6.02.  Orders
        and Laws. There shall not be in effect on the Closing Date any Order or Law
        restraining, enjoining or otherwise prohibiting or making illegal the
        consummation of any of the transactions contemplated by this Agreement or
        any of
        the Ancillary Agreements or which could reasonably be expected to have a
        Business Material Adverse Effect on the Group Companies, and there shall
        not be
        pending or threatened on the Closing Date any Actions or Proceedings or any
        other action, statement or objection in, before or by any Governmental Authority
        which could reasonably be expected to result in the issuance of any such
        Order
        or the enactment, promulgation or deemed applicability to the Purchaser,
        the
        Group Companies or the transactions contemplated by this Agreement or any
        of the
        Ancillary Agreements of any such Order or Law. 

       

      6.03.  Third
        Party Consents. The consents (or in lieu thereof waivers) and all other
        consents (or in lieu thereof waivers) to the performance by the Seller Parties
        of their obligations under this Agreement and the Ancillary Agreements or
        to the
        consummation of the transactions contemplated hereby and thereby as are required
        under any Contract to which any of the Seller Parties is a party or by which
        any
        of their respective Assets and Properties are bound and where the failure
        to
        obtain any such consent (or in lieu thereof waiver) could reasonably be
        expected, individually or in the aggregate with other such failures, to
        adversely affect the Purchaser or have a Business Material Adverse Effect
        on the
        Group Companies, (a) shall have been obtained, (b) shall be in form
        and substance reasonably satisfactory to the Purchaser, (c) shall not be
        subject to the satisfaction of any condition that has not been satisfied
        or
        waived and (d) shall be in full force and effect. 

       

      6.04.  Performance
        of Obligations; Representations and Warranties. Each Seller Party shall have
        performed and complied with all covenants, obligations and agreements contained
        in this Agreement that are required to be performed or complied with by it
        prior
        to or at the Closing and each of the representations and warranties made
        by such
        Seller Party in this Agreement and in each Ancillary Agreement to which it
        is a
        Party, shall be true and correct in all respects on the date hereof and on
        and
        at the Closing Date as though such representation or warranty was made on
        and at
        the Closing Date, and any representation or warranty made as at a specified
        date
        earlier than the Closing Date shall have been true and correct in all respects
        on such earlier date. 

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      6.05.  Closing
        Deliveries. The Seller Parties shall have delivered to the Purchaser all of
        the documents and agreements set forth in Section 1.08.

       

      6.06.  Certificates.
        The Purchaser shall have received certificates from each of the Seller Parties
        dated the Closing Date in form and substance reasonably
        satisfactory
        to the Purchaser, certifying that the conditions set forth herein have been
        satisfied. 

       

      6.07.  Proceedings.
        All board and/or shareholder approvals to be obtained on the part of the
        Seller
        and the Founders in connection with the transactions contemplated by this
        Agreement shall be reasonably satisfactory in form and substance to the
        Purchaser, and the Purchaser shall have received copies of all such documents
        and other evidences as the Purchaser may reasonably request in order to
        establish the consummation of such transactions and the taking of all
        proceedings in connection therewith. 

       

      6.08.  Directors
        and Management. The Group Companies shall have updated and filed their
        respective register of directors to accurately reflect their current directors
        and general managers (to the extent applicable), including the following
        directors of the Group Companies, who shall be appointed effective at the
        Closing:

       

      (a)  The
        Company
        :
        Jeffrey Dash, William Lee and Ju Baochun;

       

      (b)  The
        HK
        Company: Jeffrey Dash, William Lee and Ju Baochun; and

       

      (c)  The
        PRC Subsidiary: Jeffrey Dash, William Lee and Ju Baochun.

       

      6.09.  No
        Business Material Adverse Effect.
        There
        shall have been no Business Material Adverse Effect.

       

      6.10.  HK
        Company. Ownership of all the equity interests of the HK Company shall have
        been transferred to the Company.

       

      6.11.  Business
        License. The PRC Subsidiary shall have completed capital injection in the
        amount of 15% of its registered capital, among which 20% is contributed by
        the
        Seller and 80% contributed by the Purchaser and obtained the final business
        license from relevant PRC Governmental Authority.

       

      ARTICLE
        7

       

      Conditions
        to Obligations of the Seller

       

      The
        obligations of the
        Seller hereunder are subject to the fulfillment, at or before the Closing,
        of
        each of the following conditions (all or any of which may be waived in whole
        or
        in part by the Seller in their sole discretion):

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      7.01.  Orders
        and Laws.
        There
        shall not be in effect on the Closing Date any Order or Law restraining,
        enjoining or otherwise prohibiting or making illegal the consummation of
        any of
        the transactions contemplated by this Agreement or any of the Ancillary
        Agreements or which could reasonably be expected to have a Business Material
        Adverse Effect on the Purchaser, or there shall not be pending or threatened
        on
        the Closing Date any Action or Proceeding or any other action in, before
        or by
        any Governmental Authority which would result in the issuance of any such
        Order
        or the enactment, promulgation or deemed applicability to the Seller or the
        Founders or the transactions contemplated by this Agreement or any of the
        Ancillary Agreements of any such Order or Law. 

       

      7.02.  Regulatory
        Consents and Approvals. All consents, approvals and actions of, filings with
        and notices to any Governmental Authority necessary to permit the Purchaser
        to
        perform its obligations under this Agreement and the Ancillary Agreements
        and to
        consummate the transactions contemplated hereby and thereby (a) shall have
        been duly obtained, made or given, (b) shall not be subject to the
        satisfaction of any condition that has not been satisfied or waived and
        (c) shall be in full force and effect, and all terminations or expirations
        of waiting periods imposed by any Governmental Authority necessary for the
        consummation of the transactions contemplated by this Agreement and the
        Ancillary Agreements shall have occurred.

       

      7.03.  Representations
        and Warranties. The Purchaser shall have performed and complied with all
        covenants, obligations and agreements contained in this Agreement that are
        required to be performed or complied with by it prior to or at the Closing
        and
        each of the representations and warranties made by the Purchaser in this
        Agreement shall be true and correct in all respects on and as at (i) the
        date
        hereof, and (ii) the Closing Date as though such representation or warranty
        was
        made on and as at the Closing Date, and any representation or warranty made
        as
        at a specified date earlier than the Closing Date shall have been true and
        correct in all respects on and as at such earlier date.

       

      7.04.  Proceedings.
        All board and/or shareholder approvals to be obtained by the Purchaser in
        connection with the transactions contemplated by this Agreement and all
        documents incidental thereto shall be reasonably satisfactory in form and
        substance to the Seller and the Founders, and the Seller and the Founders
        shall
        have received copies of all such documents and other evidences as the Seller
        and
        the Founders may reasonably request in order to establish the consummation
        of
        such transactions and the taking of all proceedings in connection
        therewith.

       

      ARTICLE
        8

       

      Tax
        Matters and Post-Closing Taxes

       

      The
        Parties
        shall pay their respective sales, use, value added, transfer, real property
        transfer, recording, stamp stock transfer and other similar Taxes and fees
        arising out of the transactions effected pursuant to this Agreement and the
        Ancillary Agreements. 

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      ARTICLE
        9

       

      Survival
        of Representations, Warranties and Covenants

       

      Notwithstanding
        any right of the Purchaser (whether or not exercised) to investigate the
        affairs
        of the Group Companies or any right of any Party (whether or not exercised)
        to
        investigate the accuracy of the representations and warranties of the other
        Party contained in this Agreement, and notwithstanding anything known by
        any
        such Party or the fact of the Closing, the Purchaser has the right to rely
        fully
        upon the representations, warranties, covenants and agreements of the Seller
        Parties contained in this Agreement (subject to the exceptions and disclosures
        contained in the Disclosure Schedule). The
        Representations, warranties, covenants and agreements contained herein shall
        survive the Closing.

       

      ARTICLE
        10

       

      Indemnification

       

      10.01.  Indemnification by
        the
        Seller and the Founders.

       

      The
        Seller and the Founders shall jointly and severally indemnify the Purchaser
        and
        its officers, directors, employees, agents and Affiliates in respect of,
        and
        hold each of them harmless from and against, any and all Loss suffered, incurred
        or sustained by any of them or to which any of them becomes subject to,
        resulting from or arising out of any of the following:

       

      (i)  any
        misrepresentation, breach of warranty or non-fulfillment of or failure to
        perform any covenant or agreement on the part of any of the Seller Parties
        contained in this Agreement or in any Ancillary Agreement (subject always
        to the
        exceptions and disclosures contained in the Disclosure Schedule);
        or

       

      (ii)  any
        fraud
        or negligence by a Seller Party, or any of their respective employees, officers,
        directors or shareholders with respect to the subject matter of any of the
        representations, warranties, covenants or agreements contained or contemplated
        by this Agreement or in any Ancillary Agreement.

       

      10.02.  Indemnification
        by the Purchaser.

       

      The
        Purchaser shall indemnify the Seller and its officers, directors, employees,
        agents and Affiliates in respect of, and hold each of them harmless from
        and
        against, any and all Loss suffered, incurred or sustained by any of them
        or to
        which any of them becomes subject to, resulting from or arising out of any
        of
        the following:

       

      (i)  any
        misrepresentation, breach of warranty or non-fulfillment of or failure to
        perform any covenant or agreement on the part of the Purchaser contained
        in this
        Agreement or in any Ancillary Agreement; or

       

      (ii)  any
        fraud
        or negligence by the Purchaser, or any of its employees, officers, directors
        or
        shareholders with respect to the subject matter of any of the representations,
        warranties, covenants or agreements contained or contemplated by this Agreement
        or in any Ancillary Agreement.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        11

       

      Termination

       

      11.01.  Termination.
        

       

      This
        Agreement may be terminated, and the transactions contemplated hereby may
        be
        abandoned at any time prior to Closing:

       

      (i)  in
        the
        event of a material breach hereof by the non-terminating party if such
        non-terminating party fails to cure such breach within fifteen (15) Business
        Days following notification thereof by the terminating party;

       

      (ii)  if
        any
        Order enjoining the Purchaser or any Seller Party from consummating the
        transactions contemplated by this Agreement shall have become final and
        non-appealable; or

       

      (iii)  at
        any
        time after 90 days after the date hereof upon notification to the
        non-terminating party by the terminating party if the Closing has not occurred
        on or before such date;
        provided, however, that the right to terminate this Agreement
        under this Section 11.01
        shall
        not be available to any Party whose failure to fulfill any obligation under
        this
        Agreement shall have been the cause of, or shall have resulted in, the failure
        of the Closing to occur on or prior to such date.

       

      Notwithstanding
        with anything to the contrary in this Agreement, the Purchaser shall be entitled
        to terminate this Agreement and the Ancillary Agreements subsequent to the
        Closing, if Yinse fails to obtain the Atis Contract on or prior to December
        31,
        2008. Upon such termination, all Parties shall be restored to status quo,
        including, without limitation, the Cash Consideration and the Share
        Consideration being immediately returned to the Purchaser or Legend, as
        applicable, and the transfer of the Purchased Shares back to the
        Seller.

       

      11.02.  Effect
        of Termination.
        If this
        Agreement is validly terminated pursuant to Section 11.01,
        this
        Agreement will forthwith become null and void, and there will be no liability
        or
        obligation on the part of the Seller and the Founders, or the Purchaser (or,
        with regards to the Seller, and the Purchaser, any of their respective officers,
        directors, employees, agents or other representatives or Affiliates), except
        as
        provided in the next succeeding sentence and except that the provisions with
        respect to expenses in Section 13.04
        and
        confidentiality in Section 13.05
        will
        continue to apply following any such termination. Notwithstanding any other
        provision in this Agreement to the contrary, upon termination of this Agreement
        pursuant to Section 11.01(ii)
        or
(iii),
        any
        Party will remain liable to the non-breaching Party for any breach of this
        Agreement by the breaching Party existing
        at the time of such termination, and the non-breaching Party may seek such
        remedies, including damages and reasonable fees of attorneys, against the
        breaching Party with respect to any such breach as are provided in this
        Agreement or as are otherwise available at law or in equity. 

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      ARTICLE
        12

       

      Definitions

       

      12.01.  Definitions.

       

      (i)  As
        used
        in this Agreement, the following defined terms shall have the meanings indicated
        below:

       

      “Actions
        or Proceedings”
means
        (i) any action, suit, proceeding, arbitration or (ii) any Governmental Authority
        inquiry, investigation or audit.

       

      “Affiliate”
means
        any Person that directly or indirectly through one or more intermediaries,
        controls or is controlled by or is under common control with the Person
        specified. For the purposes of this definition, control of a Person means
        the
        power, direct or indirect, to direct or cause the direction of the management
        and policies of such Person whether by Contract or otherwise and, in any
        event
        and without limitation of the previous sentence, any Person owning twenty
        percent (20%) or more of the voting securities of a second Person shall be
        deemed to control that second Person. For the purposes of this definition,
        a
        Person shall be deemed to control any of his or her immediate family members.
        

       

      “Agreement”
has
        the
        meaning ascribed to it in the introductory paragraph. 

       

      “Ancillary
        Agreements”
means
        the Yinse Contracts and the Escrow Agreement. 

       

      “Assets
        and Properties”
of
        any
        Person means all assets and properties of every kind, nature, character and
        description (whether real, personal or mixed, whether tangible or intangible,
        whether absolute, accrued, contingent, fixed or otherwise and wherever
        situated), including the goodwill related thereto, operated, owned or leased
        by
        such Person, including cash, cash equivalents, Investment Assets, accounts
        and
        notes receivable, chattel paper, documents, instruments, general intangibles,
        real estate, equipment, inventory, goods and intellectual property.

       

      “Atis
        Advertising”
means
        Beijing Atis Advertising Co., Ltd. (北京阿提斯广告有限公司),
        a
        corporation incorporated under the Laws of PRC.

       

      “Atis
        Contract”
has
        the
        meaning ascribed to it in Section 1.02 of this Agreement.

       

      “Business
        Day”
means
        a
        day other than Saturday, Sunday or any day on which banks located in the
        PRC and
        the U.S. are authorized or obligated to close.

       

      “Business
        Material Adverse Effect”
means
        any material adverse effect on (i) the business, assets, condition
        (financial or otherwise), or results of operations of the Group Companies
        taken
        as a whole, or (ii) the ability of the Seller Parties to perform their
        obligations under this Agreement or any Ancillary Agreement in a timely manner
        or to consummate the transactions contemplated by this Agreement or the
        Ancillary Agreements without material delay. In determining whether there
        has
        been a Business Material Adverse Effect, any event, circumstance, change
        or
        effect shall be considered both individually and together with all other
        events,
        circumstances, changes or effects and any event, circumstance, change or
        effect
        that reasonably could be expected to result in a Business Material Adverse
        Effect (individually or together with one or more other events, circumstances,
        changes or effects) shall be considered a Business Material Adverse
        Effect.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      “BVI”
means
        British Virgin Islands.

       

      “Cash
        Consideration”
has
        the
        meaning ascribed to it in Section 1.02 of this Agreement.

       

      “Closing”
means
        the closing of the transactions contemplated by Section 1.06 of this
        Agreement.

       

      “Closing
        Date” has
        the
        meaning ascribed to it in Section 1.06 of this Agreement.

       

      “Contract”
means
        any agreement, lease, and evidence of Indebtedness, mortgage, indenture,
        security agreement or other contract (whether written or oral).

       

      “Disclosure
        Schedule”
means
        the Disclosure Schedule, including any document annexed to the Disclosure
        Schedule, attached hereto as the Exhibit,
        dated
        as at the date hereof and as updated immediately prior to the Closing Date,
        delivered to the Purchaser by the Seller Parties in connection with this
        Agreement. 

       

      “Escrow
        Agent”
has
        the
        meaning ascribed to it in Section 1.02 of this Agreement.

       

      “Escrow
        Agreement”
has
        the
        meaning ascribed to it in Section 1.02 of this Agreement.

       

      “Founders”
has
        the
        meaning ascribed to it in the forepart of this Agreement.

       

      “Governmental
        Authority”
means
        any court, tribunal, arbitrator, authority, agency, commission, official
        or
        other instrumentality of the PRC, any foreign country or any domestic or
        foreign
        state, county, city or other political subdivision including but not limited
        to
        the Ministry of Commerce and their respective local and provincial branches
        or
        departments.

       

      “HKIAC”
means
        Hong Kong International Arbitration Centre.

       

      “Hong
        Kong”
or
        “HK”
means
        the Hong Kong Special Administrative Region of the PRC. 

       

      “HK
        Company”
has
        the
        meaning ascribed to it in the Recitals to this Agreement.

       

      “Indebtedness”
of
        any
        Person means all obligations of such Person (i) for borrowed money,
        (ii) evidenced by notes, bonds, debentures or similar instruments,
        (iii) for the deferred purchase price of goods or services (other than
        trade payables, installment payments or accruals incurred in the ordinary
        course
        of business), (iv) under capital leases, or (v) in the nature of
        guarantees of the obligations described in clauses (i) through
        (iv) above of any other Person.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      “Investment
        Assets”
means
        all debentures, notes and other evidences of Indebtedness, stocks, securities
        (including rights to purchase and securities convertible into or exchangeable
        for other securities), interests in joint ventures and general and limited
        partnerships, mortgage loans and other investment or portfolio
        assets.

       

      “Issue
        Price”
has
        the
        meaning ascribed to it in Section 1.02 of this Agreement.

       

      “Laws”
means
        all laws, statutes, rules, regulations, ordinances and other pronouncements
        having the effect of law in the PRC, the United States, the British Virgin
        Islands or any other country, or any domestic or foreign state, county, city
        or
        other political subdivision or of any Governmental Authority.

       

      “Legend”
has
        the
        meaning ascribed to it in the forepart of this Agreement.

       

      “Liabilities”
means
        all Indebtedness, obligations and other liabilities of a Person (whether
        absolute, accrued, contingent, fixed or otherwise, or whether due or to become
        due).

       

      “Licenses”
means
        all licenses, permits, certificates of authority, authorizations, approvals,
        registrations, franchises and similar consents granted or issued by any
        Governmental Authority.

       

      “Liens”
means
        any mortgage, pledge, assessment, security interest, lease, lien, adverse
        claim,
        levy, charge or other encumbrance of any kind, or any conditional sale Contract,
        title retention Contract or other Contract to give any of the
        foregoing.

       

      “Lock-in”
means
        the prohibition of any sale or transfer of the Share Consideration.

       

      “Loss”
means
        any and all direct or indirect damages, fines, fees, penalties, losses and
        expenses (including interest, court costs, and reasonable fees of attorneys,
        accountants and other experts or other expenses of litigation or other
        proceedings or of any claim, default or assessment), whether foreseeable
        or not.

       

      “Option”
with
        respect to any Person means any security, right, subscription, warrant, option,
        “phantom” stock right or other Contract that gives the right to
        (i) purchase or otherwise receive or be issued any shares of capital stock
        of such Person or any security of any kind convertible into or exchangeable
        or
        exercisable for any shares of capital stock of such Person or (ii) receive
        any benefits or rights similar to any rights enjoyed by or accruing to the
        holder of shares of capital stock of such Person, including any rights to
        participate in the equity, income or election of directors or officers of
        such
        Person.

       

      “Order”
means
        (i) any writ, judgment, decree, injunction or (ii) any other decision, ruling,
        order or statement of any Governmental Authority (in each such case whether
        preliminary or final).

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      “Person”
means
        any natural person, corporation, general partnership, limited partnership,
        proprietorship, other business organization, trust, union, association or
        Governmental Authority.

       

      “PRC”
means
        the People’s Republic of China, and for the purpose of this Agreement, not
        including Hong Kong, Macau and Taiwan.

       

      “PRC
        Subsidiary”
has
        the meaning ascribed to it in the Recitals to this Agreement.

       

      “Purchased
        Shares”
has
        the
        meaning ascribed to it in Section 1.01
        of this
        Agreement.

       

      “Purchaser”
has
        the
        meaning ascribed to it in the forepart of this Agreement.

       

      “2008
        Revenue”
has
        the
        meaning ascribed to Section 1.03 of this Agreement.

       

      “2008
        Target Revenue”
has
        the
        meaning ascribed to Section 1.02 of this Agreement.

       

      “Seller”
has
        the
        meanings ascribed to them in the forepart of this Agreement.

       

      “Share
        Consideration”
as
        the
        meaning ascribed to Section 1.02 of this Agreement.

       

      “Shares”
means
        all the issued and outstanding common shares of the Company.

       

      “Tax
        Return”
means
        any declaration, statement, report, return, information return or claim for
        refund relating to Taxes (including information required to be supplied to
        a
        governmental entity in respect of such report or return) including, if
        applicable, combined or consolidated returns for any group of entities that
        includes any of the Group Companies.

       

      “Transactions”
means
        (1) the execution and delivery of this Agreement and the Ancillary Agreements,
        and (2) all of the transactions contemplated hereunder and thereunder, including
        the sale of the Purchased Shares by the Seller to the Purchaser, and the
        performance by the Purchaser and the Seller Parties of their respective
        obligations hereunder. 

       

      “USD”,
        “US$”
means
        U.S. dollars, the lawful currency of the United States of America.

       

        “US
        GAAP”
means
        the generally accepted accounting principles in the United States.

       

        “Yinse”
has
        the
        meaning ascribed to it in the Recitals to this Agreement.

       

      (ii)  Unless
        the context of this Agreement otherwise requires, (1) words of any gender
        include each other gender; (2) words using the singular or plural number
        also include the plural or singular number, respectively; (3) the terms
“hereof,” “herein,” “hereby” and derivative or similar words refer to this
        entire Agreement; (4) the terms “Article”, “Section” or “clause” refer to
        the specified Article, Section or clause of this Agreement; and (5) the
        phrases “ordinary course of business” and “ordinary course of business
        consistent with past practice” refer to the business and practice of the
        Company, and Yinse. All accounting terms used herein and not expressly defined
        herein shall have the meanings given to them under IFRS.

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      (iii)  As
        used
        in this Agreement, the words “include” and “including”, and variations thereof,
        shall not be deemed to be terms of limitation, but rather shall be deemed
        to be
        followed by the words “without limitation”. 

       

      (iv)  As
        used
        in this Agreement, a matter is "to the knowledge of" the Seller, the Seller
        Parties, the Founders or the Group Companies (as the case may be) if the
        Seller,
        Seller Parties, Founders or Group Companies (as the case may be) know or
        should
        have known such matter. 

       

      ARTICLE
        13

       

      Miscellaneous

       

      13.01.  Public
        Announcements.
        Subject
        to applicable Law, and the rules and regulations of any stock exchange on
        which
        the securities of Legend or its Affiliates are traded, none of the Seller
        or the
        Founders shall, nor shall any Seller or the Founders permit any of its
        Affiliates to, issue any press release, publicity statement, communication
        with
        stockholders, public notice or other public disclosure relating to this
        Agreement or the transactions contemplated hereby without prior notice to,
        consultation with, and the consent of the Purchaser.

       

      13.02.  Communication.
        None of the Seller Parties will undertake any communication with any
        Governmental Authority prior to the Closing without the prior consent of
        the
        Purchaser.

       

      13.03.  Notices.
        All notices, demands or other communications given hereunder (a) shall be
        deemed to have been duly given and received (i) upon personal delivery,
        (ii) if by facsimile, when confirmation of its error-free transmission has
        been recorded by the sender's fax machine, or (iii) the second succeeding
        Business Day after deposit with UPS or other equivalent air courier delivery
        service, unless the notice is held or retained by the customs service, in
        which
        case the date shall be the fifth succeeding Business Day after such deposit
        and
        (b) must be in writing and delivered personally, by a recognized courier
        service, by a recognized overnight delivery service, by facsimile or by
        registered or certified mail, postage prepaid, at the following addresses
        (or to
        the attention of such other Person or such other address as any party may
        provide to the other parties by notice in accordance with this
        Section 13.03):

       

      If
        to the
        Purchaser, to:

      Address:  
        Room 601-602, Tower C, Baoding Center, NO.7, DongDaMoChang Street, Chongwen
        District, Beijing

      Facsimile
        No: 010-67082707

      Attn:
        Shao Changjian

      

      If
        to the
        Seller or the Founders, to 

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      Address: 
         Room 8-3-101, Guanyuan Plaza, No. 1 Cuihua Street, Xicheng District,
        Beijing.

      Facsimile
        No: 010-66126396

      Attn:
        Ju
        Baochun

      

       

      13.04.  Expenses.
        Except
        as otherwise expressly provided in this Agreement, whether or not the
        transactions contemplated hereby are consummated, each party will pay its
        own
        costs and expenses. 

       

      13.05.  Confidentiality.
        The Parties recognize that, in connection with the performance of this Agreement
        and the Ancillary Agreements, each Party (in such capacity, the “Disclosing
        Party”) may disclose Confidential Information to the other party (the
“Receiving Party”). The Receiving Party agrees (x) not to use any
        such Confidential Information for any purpose other than in the performance
        of
        its obligations under this Agreement or any Ancillary Agreement and (y) not
        to disclose any such Confidential Information, except (1) to its employees
        who are reasonably required to have the Confidential Information in connection
        herewith or with any of the Ancillary Agreements, (2) to its agent,
        representatives, lawyers and other advisers that have a need to know such
        Confidential Information and (3) pursuant to, and to the extent of, a
        request or order by a Governmental Authority.
        “Confidential Information” shall mean (i) the terms of this Agreement and
        the other Ancillary Agreements and proprietary information (whether owned
        by the
        Disclosing Party or a third party to whom the Disclosing Party owes a
        non-disclosure obligation) regarding the Disclosing Party’s business and
        (ii) information which is marked as confidential at the time of disclosure
        to the Receiving Party, or if in oral form, is identified as confidential
        at the
        time of oral disclosure and reduced in writing or other tangible (including
        electronic) form including a prominent confidentiality notice and delivered
        to
        the Receiving Party within thirty (30) days of disclosure. “Confidential
        Information” shall not
        include
        information which: (A) was known to the Receiving Party at the time of the
        disclosure by the Disclosing Party; (B) has become publicly known through
        no wrongful act of the Receiving Party; (C) has rightfully been received by
        the Receiving Party from a third party; or (D) has been independently
        developed by the Receiving Party. 

       

      13.06.  Waiver.
        Any term or condition of this Agreement may be waived at any time by the
        party
        that is entitled to the benefit thereof, but no such waiver shall be effective
        unless set forth in a written instrument duly executed by or on behalf of
        the
        party waiving such term or condition. No waiver by any party of any term
        or
        condition of this Agreement, in any one or more instances, shall be deemed
        to be
        or construed as a waiver of the same or any other term or condition of this
        Agreement on any future occasion. All remedies, either under this Agreement
        or
        by Law or otherwise afforded, will be cumulative and not
        alternative.

       

      13.07.  No
        Third Party Beneficiary. The terms and provisions of this Agreement are
        intended solely for the benefit of each party hereto and their respective
        successors or permitted assigns, and it is not the intention of the Parties
        to
        confer third-party beneficiary rights upon any Person.

       

      13.08.  No
        Assignment; Binding Effect. Neither this Agreement nor any right, interest
        or obligation hereunder may be assigned by any party hereto without the prior
        written consent of the other party hereto and any attempt to do so will be
        void,
        except (i) for assignments and transfers by operation of Law and
        (ii) that the Purchaser may assign any or all of its rights, interests and
        obligations hereunder (including its rights under Article 10) to a
        subsidiary, provided that any such subsidiary agrees in writing to be bound
        by
        all of the terms, conditions and provisions contained herein. Subject to
        the
        preceding sentence, this Agreement is binding upon, inures to the benefit
        of and
        is enforceable by the parties hereto and their respective successors and
        assigns.

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      13.09.  Governing
        Law. This Agreement, the rights and obligations of the parties hereto, and
        any claims or disputes relating thereto, shall be governed by and construed
        in
        accordance with the Laws of the State of New York, without giving effect
        to the
        choice of law rules thereof. 

       

      13.10.  Arbitration. 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 Parties 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.

       

      All
        disputes arising out of or in connection with this Agreement shall be submitted
        to the Hong Kong International Arbitration Centre (the “HKIAC”) for arbitration
        in Hong Kong, which shall be conducted in accordance with HKIAC’s arbitration
        rules in effect at the time of applying for arbitration. The arbitral tribunal
        shall comprise three arbitrators, two appointed by the Purchaser and the
        Seller
        respectively and the third appointed jointly by the two arbitrators. The
        language of the arbitration shall be in English.

       

      13.11.  Waiver
        of Immunity. To the extent that the Purchaser or the Seller Parties
        (including assignees of any such rights or obligations hereunder) may be
        entitled, in any jurisdiction, to claim for itself or its revenues, assets
        or
        properties, immunity from service of process, suit, the jurisdiction of any
        court, an interlocutory order or injunction or the enforcement of the same
        against its property in such court, attachment prior to judgment, attachment
        in
        aid of execution of an arbitral award or judgment (interlocutory or final)
        or
        any other legal process, and to the extent that, in any such jurisdiction
        there
        may be attributed such immunity (whether claimed or not), the Purchaser and
        the
        Seller Parties hereby irrevocably waive such immunity. Any and all process
        may
        be served in any action, suit or proceeding arising in connection with this
        Agreement by complying with the provisions of Section 13.10. 

       

      13.12.  Entire
        Agreement. This Agreement and the Ancillary Agreements constitute the sole
        and entire agreement among the parties hereto with respect to the subject
        matter
        hereof and supersedes and renders of no force and effect all prior oral or
        written agreements, commitments and undertakings among the parties with respect
        to the subject matter hereof, including that certain Letter of Intent dated
        January 23, 2008 (as amended). 

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      13.13.  Amendment.
        This Agreement may be amended, supplemented or modified only by a written
        instrument duly executed by or on behalf of each of the parties to
        it.

       

      13.14.  Severability.
        If any provision of this Agreement is held to be illegal, invalid or
        unenforceable under any present or future Law, and if the rights or obligations
        of any party hereto under this Agreement will not be materially and adversely
        affected thereby, (a) such provision will be fully severable, (b) this
        Agreement will be construed and enforced as if such illegal, invalid or
        unenforceable provision had never comprised a part hereof, (c) the
        remaining provisions of this Agreement will remain in full force and effect
        and
        will not be affected by the illegal, invalid or unenforceable provision or
        by
        its severance herefrom and (d) in lieu of such illegal, invalid or
        unenforceable provision, there will be added as a part of this Agreement
        a
        mutually acceptable legal, valid and enforceable provision as similar in
        terms
        to such illegal, invalid or unenforceable provision as may be
        possible.

       

      13.15.  Headings.
        The headings used in this Agreement have been inserted for convenience of
        reference only and do not define or limit the provisions hereof.

       

      13.16.  Execution
        of Counterparts. This Agreement may be executed in any number of
        counterparts, each of which will be deemed an original, but all of which
        together will constitute one and the same instrument.

       

      13.17.  Language.
        This Agreement is prepared in both English and Chinese versions, with each
        version having equal validity and legal effect. In the event of discrepancy
        between the English and Chinese versions, the English version shall
        govern.

       

      13.18.  Taking
        Effect.
        This
        Agreement shall take effect on the date and year first above
        written.

       

      [SIGNATURE
        PAGES FOLLOW]

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Parties hereto have caused their respective duly authorized
        representatives to execute this Agreement as of the date and year first above
        written. 

       

      

      Legend
        Media Inc.

      
/s/
        Jeffrey Dash

      By:
        Jeffrey Dash

      Title:
        Chief Executive Officer 

      

      

      Well
        Chance Investments Limited

      

      /s/
        Jeffrey Dash

      By:
        Jeffrey Dash

      Title:
        President

      

      

      Music
        Radio Limited

      

      /s/
        Ju Baochun

      By:
        Ju
        Baochun

      Title:
        Executive Director

       

       

      The
        Founders

       

      
        /s/
          Ju Baochun

      

      Ju
        Baochun

      

       

      
        /s/
          Xue Wei

      

      Xue
        Wei

       

      

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      EXHIBIT
        

       

      DISCLOSURE
        SCHEDULE

       

      
        
          
          

        

        
          1SETTLEMENT
      AGREEMENT

     

    THIS
      SETTLEMENT AGREEMENT (the
      “Settlement
      Agreement”)
      is
      entered into by and between Chinamerica Fund, LP (“Chinamerica”)
      and
      China BAK Battery, Inc. (the “Company”)
      and
      its subsidiary BAK International, Ltd. (“BAK
      International”
and,
      together with the Company, “CBAK”).
      Chinamerica and CBAK are also each referred to separately as a “Party”
and
      together as the “Parties.”
The
      Parties, in order to resolve disputed and contested issues and to limit the
      hazards, uncertainties and inconvenience of potential litigation, enter into
      this Settlement Agreement.

     

    1. Escrow
      Agreement.
      On
      January 20, 2005, BAK International consummated a private placement of its
      common stock with unrelated investors whereby it issued an aggregate of
      8,600,433 shares of common stock for gross proceeds of US$17,000,000 (the
“Private
      Placement”).
      Immediately thereafter, the shares of BAK International were exchanged for
      shares of the Company. Chinamerica was an investor in the Private Placement
      and
      entered into a subscription agreement (the “Subscription
      Agreement”)
      in
      connection therewith. In conjunction with the Private Placement, pursuant to
      an
      Escrow Agreement dated January 20, 2005, Mr. Li Xiangqian, the Chairman and
      Chief Executive Officer of the Company, placed 2,179,550 shares of the Company’s
      common stock owned by him (the “Make
      Good Shares”)
      into
      an escrow account. The terms and conditions regarding release of the Make Good
      Shares from escrow was set forth in the Escrow Agreement. A dispute has arisen
      between Chinamerica and CBAK regarding 1,089,775 Make Good Shares (herein
      referred to as the “Released
      Shares”)
      released from the escrow account to Mr. Li and subsequently delivered by Mr.
      Li
      to BAK International, which then delivered the shares to the Company.

    

    The
      Parties have agreed, without any admission of liability, that it is in the
      interests of all of the Parties and their respective Affiliates and investors
      to
      resolve the issues relating to the Released Shares amicably. 

    

    2. Definitions.
      Capitalized terms not otherwise defined herein shall have the following
      meanings:

     

    
      	 	
              a.

            	
              Affiliates
                means all persons and entities controlling, controlled by or under
                common
                control with a Party. Investors in Chinamerica shall not be deemed
                Affiliates of Chinamerica for purposes of this Settlement Agreement,
                except to the extent of any rights that they may derive as an investor
                in
                Chinamerica.

            

    

     

    
      	 	
              b.

            	
              Claims means
                any and all claims, demands, causes of actions, or liabilities, of
                any and
                every character, kind and nature whatsoever, in law or in equity,
                whether
                known or unknown, foreseen or unforeseen, past, present, or future,
                accrued or unaccrued, contingent or fixed, arising out of or related
                to
                any or all of the Subscription Agreement, the Escrow Agreement, the
                Make
                Good Shares (including the Released Shares), and the Private Placement,
                including any registration rights (other than the registration rights
                granted pursuant to Section 3.b. of this Settlement Agreement) related
                thereto. 

            

    

    

      SETTLEMENT
        AGREEMENT

       

    

    
      
        
        

      

      
        Page
          1 of
          7

        
          

        

      

      
        
        

      

    

    
      	 	
              c.

            	
              Release
                Date
                means the earliest of (x) such time as all of the Chinamerica Shares
                have
                been sold by Chinamerica; (y) such
                time as all of the Chinamerica Shares may be sold by Chinamerica
                without
                volume limitations pursuant to Rule 144 under the Securities Act,
                as
                determined by the counsel to the Company pursuant to a written opinion
                letter to such effect, addressed and acceptable to the Company’s transfer
                agent;
                and (z) the date a Registration Statement on Form S-3 (or other
                appropriate form) covering the resale by Chinamerica of the Chinamerica
                Shares is declared effective by the SEC as set forth in Section
                3.b.

            

    

     

    
      	 	
              d.

            	
              SEC
                means the U.S. Securities and Exchange
                Commission.

            

    

     

    
      	 	
              e.

            	
              Securities
                Act
                means the U.S. Securities Act of 1933, as
                amended.

            

    

     

    3. Settlement
      Terms.

     

    
      	 	
              a.

            	
              Delivery
                of Shares.
                Upon execution of this Settlement Agreement by the Company and
                Chinamerica, the Company shall promptly, and no later than ten days
                after
                the date this Settlement Agreement is executed by the Parties, deliver
                to
                Chinamerica at the address set out below a certificate or certificates
                registered in the name of Chinamerica Fund, LP for 32,050 of the
                Released
                Shares (the “Chinamerica
                Shares”).

            

    

     

    
      	 	
              b.

            	
              Registration.
                On or prior to the date (the “Filing
                Date”)
                that is one month after the date that the Company’s Registration Statement
                on Form S-3 (Registration No. 333-148253) is declared effective by
                the SEC
                (or, if the Filing Date is not a business day, the first business
                day
                after the Filing Date), and provided that Chinamerica has provided
                the
                Company with a completed questionnaire in the form attached as
                Exhibit
                A
                hereto, the Company shall prepare and file with the SEC a Registration
                Statement on Form S-3 (or such other appropriate form for such purpose)
                covering the resale by Chinamerica of the Chinamerica Shares in an
                offering to be made on a continuous basis pursuant to Rule 415 under
                the
                Securities Act. Such Registration Statement may also include such
                other
                selling holders as the Company shall deem appropriate. The Company
                shall
                cause such Registration Statement to be declared effective under
                the
                Securities Act as soon as possible, and shall use its reasonable
                best
                efforts to keep such Registration Statement continuously effective
                under
                the Securities Act until the date which is the earliest of (i) two
                years after its effective date; (ii) such time as all of the Chinamerica
                Shares covered by such Registration Statement have been sold by
                Chinamerica; and (iii) such time as all of the Chinamerica Shares
                covered
                by such Registration Statement may be sold by Chinamerica without
                volume
                limitations pursuant to Rule 144, as determined by counsel to the
                Company
                pursuant to a written opinion letter to such effect, addressed and
                acceptable to the Company’s transfer agent. No later than 5:00 p.m.
                Eastern time on the day following the date the Registration Statement
                is
                declared effective, the Company shall file with the SEC in accordance
                with
                Rule 424 under the Securities Act the final prospectus to be used
                in
                connection with sales pursuant to such Registration Statement (whether
                or
                not such filing is technically required under such
                Rule).

            

    

    

      SETTLEMENT
        AGREEMENT

    

     

    
      
        
        

      

      
        Page
          2 of
          7

        
          

        

      

      
        
        

      

    

    
      	 	
              c.

            	
              Ability
                to Disclose Information.
                The Company agrees that Chinamerica may inform other investors in
                the
                Private Placement of the terms of this Settlement Agreement. The
                Company
                agrees that it will promptly furnish or file a report on Form 8-K
                regarding this Settlement Agreement, or otherwise make information
                regarding this Settlement Agreement available in accordance with
                Regulation FD. 

            

    

     

    
      	 	
              d.

            	
              Relief.
                The Company acknowledges that in the event it fails to deliver a
                certificate or certificates representing the Chinamerica Shares as
                provided in Section 3.a, any remedy at law may prove to be inadequate
                relief to Chinamerica. The Company agrees that Chinamerica may require
                specific performance of this Settlement Agreement by insisting upon
                delivery of the Chinamerica Shares, and shall be entitled to seek
                temporary and permanent injunctive relief without the necessity of
                proving
                actual damages and without posting a bond or other security.
                

            

    

     

    4 Interpretation.
      The
      Parties have participated jointly in the negotiation and drafting of this
      Settlement Agreement. If an ambiguity or question of intent or interpretation
      arises, this Settlement Agreement will be construed as if drafted jointly by
      the
      Parties, and no presumption or burden of proof will arise favoring or
      disfavoring any Party because of the authorship of any provision of this
      Settlement Agreement.

     

    5. No
      Admission.
      By
      entering into this Settlement Agreement, no Party is in any way admitting any
      liability to any other Party on account of any matter covered by this Settlement
      Agreement. Rather, this Settlement Agreement is entered into solely for the
      purpose of compromise and settlement of doubtful and contested claims and
      issues, to buy peace, and to avoid the hazards, delays, and uncertainties of
      litigation.

     

    6. Mutual
      Releases.
      Effective on the Release Date, Chinamerica, on behalf of itself and its
      Affiliates, releases,
      acquits, and forever discharges CBAK, its predecessors and successors in
      interest, its parent and subsidiary organizations, and its Affiliates, all
      of
      their respective officers, directors, employees, managers, shareholders,
      partners, attorneys, accountants, advisors, representatives, agents, insurers,
      heirs, executors and assigns (collectively, the “CBAK
      Releasees”)
      of and
      from any and all Claims; and Chinamerica covenants never to sue any of the
      CBAK
      Releasees upon any of the Claims hereby released.
      Effective on the Release Date, CBAK, on behalf of itself and its Affiliates,
      releases, acquits, and forever discharges Chinamerica and its Affiliates, and
      all of their respective officers, directors, employees, managers, shareholders,
      partners, attorneys, accountants, advisors, representatives, agents, insurers,
      heirs, executors, and assigns (collectively, the “Chinamerica
      Releasees”)
      of and
      from any and all Claims; and CBAK covenants never to sue any of the Chinamerica
      Releasees upon any of the Claims hereby released. For purposes of this
      paragraph, the Affiliates of Chinamerica and the Chinamerica Releases shall
      not
      include Taylor Investment Group, LLC (“TIG”)
      or
      Stephen Taylor (“Taylor”)
      as to
      any Claims other than Claims that TIG or Taylor derived from any investment
      by
      them, or either of them, directly in Chinamerica or any participation by them,
      or either of them, in the management of Chinamerica or Chinamerica Partners,
      L.P.

    

      SETTLEMENT
        AGREEMENT

    

     

    
      
        
        

      

      
        Page
          3 of
          7

        
          

        

      

      
        
        

      

    

    7. Indemnification.
      In the
      event that any of Chinamerica, its general partner Chinamerica Partners, L.P.,
      or Chinamerica Holdings, LLC institutes any proceedings or asserts any Claim
      against any of the CBAK Releasees, Chinamerica, to the fullest extent permitted
      under the law, shall hold harmless, defend and indemnify such CBAK Releasees
      with respect to such proceedings and asserted Claims. 

     

    8. Choice
      of Law.
      This
      Settlement Agreement shall be interpreted and construed according to the
      internal laws of the State of New York (without giving effect to any choice
      of
      law or conflict of law provisions of any jurisdiction), and applicable laws
      of
      the United States of America.

     

    9. Entire
      Agreement.
      This
      Settlement Agreement supersedes all other prior oral or written agreements
      between the Parties with respect to the matters set forth herein and contains
      the entire agreement of the Parties with respect to the matters set forth
      herein. If
      any
      provision of this Agreement shall be held invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Settlement Agreement in that
      jurisdiction or the validity or enforceability of that or any other provision
      of
      this Settlement Agreement in any other jurisdiction. 

     

    10. Amendments.
      This
      Settlement Agreement may be modified or amended only in writing, signed by
      each
      of the Parties to this Settlement Agreement prior to the effective date of
      any
      such modification or amendment. Any waiver must be in writing and signed by
      each
      Party whose interests are adversely affected by such waiver. No waiver granted
      in any one instance shall be construed as a continuing waiver or as a waiver
      applicable to any other provision.
      No
      exercise or failure to exercise any right shall preclude any other or further
      exercise of that right or any other right. 

     

    11. Representations.
      The
      Parties acknowledge that this Settlement Agreement is executed after
      substantial, long-term negotiations between and among representatives of the
      Parties. Each Party represents that: (a) such Party and its attorneys have
      conducted their own investigation concerning the facts surrounding the matters
      covered by this Settlement Agreement and in voluntarily choosing to execute
      this
      Settlement Agreement, have relied upon their own analysis of such facts and
      not
      on any information furnished by any other Party or its representatives;
      (b) there are no oral or other written agreements concerning the subject
      matter of this Settlement Agreement; (c) the right to rely on any oral or
      written statement of any Party or any failure of any Party to state any fact
      is
      expressly waived and released; (d) it owns and has the right to release any
      Claims released herein; (e) such Party has the requisite corporate power and
      authority to enter into and to perform this Settlement Agreement; and (f) the
      person signing the Settlement Agreement on behalf of such Party has been
      authorized to execute and deliver this Settlement Agreement on behalf of such
      Party. In addition, Chinamerica represents that
      it
      (i) is acquiring the Chinamerica Shares in the ordinary course of business
      for
      its own account and not with a view towards, or for resale in connection with,
      the sale or distribution thereof, except pursuant to sales registered or
      exempted under the Securities Act, (ii) does not have a present arrangement
      to
      effect any distribution of the Chinamerica Shares to or through any person
      or
      entity, (iii) does not presently have any agreement or understanding, directly
      or indirectly, with any person to distribute any of the Chinamerica Shares,
      (iv)
      is an “accredited investor” as that term is defined in Rule 501(a) of Regulation
      D under the Securities Act and (v) is not a registered broker-dealer under
      Section 15 of the Securities Exchange Act of 1934, as amended. Chinamerica
      understands that the Company is relying on specific exemptions from the
      registration requirements of United States federal and state securities laws
      and
      that the Company is relying in part upon the truth and accuracy of, and
      Chinamerica’s compliance with, its representations, warranties, agreements,
      acknowledgments and understandings set forth herein in order to determine the
      availability of such exemptions. When executed by all Parties and delivered
      by
      each Party to the other Parties, this Settlement Agreement will constitute
      the
      legal, valid and binding obligation of each Party. This Settlement Agreement
      shall be binding upon the assignees and successors of the Parties. This
      Settlement Agreement is personal to the Parties and is not intended to create
      any right in any third person who is not a Party or is not identified as a
      CBAK
      Releasee or a Chinamerica Releasee in Section 6 of this Settlement
      Agreement.

    

      SETTLEMENT
        AGREEMENT

    

     

    
      
        
        

      

      
        Page
          4 of
          7

        
          

        

      

      
        
        

      

    

    12. Notice.
      All
      notices, demands, waivers or other communications required or permitted under
      this Settlement Agreement must be in writing and will be deemed to have been
      delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
      when
      sent by facsimile evidenced by confirmation of transmission (provided a copy
      of
      such facsimile is also sent by one of the methods provided in (i), (iii) or
      (iv)
      of this Section 12 within 24 hours of transmission); (iii) two calendar days
      after deposit with a courier service that regularly conducts deliveries in
      the
      recipient’s jurisdiction; or (iv) if the recipient is located in the United
      States, five calendar days after deposit in the United States mail, postage
      prepaid, return receipt requested, in each case addressed to the addressees
      shown below:

     

    
      	
              If
                to Chinamerica:

            	 	
              If
                to CBAK:

            
	
              Joan
                C. Waller 

              Secore
                & Waller, L.L.P.

              Four
                Forest Plaza

              12222
                Merit Drive, Ste. 1350

              Dallas,
                TX 75251

              Tel:
                (972) 776-0200

              Fax:
                (972) 776-0240

              Email:
                jo@secorewaller.com 

            	 	
              Louis
                Bevilacqua 

              Thelen
                Reid Brown Raysman & 

              Steiner
                LLP 

              701
                Eighth Street, NW 

              Washington,
                DC 20001-3721 

              Tel:
                (202) 508-4281 

              Fax:
                (202) 654-1804 

              E-mail:
                lbevilacqua@thelen.com 

            

    

    

    Any
      Party
      may change such Party’s address for the purpose of notices, demands and requests
      required or permitted under this Settlement Agreement by providing written
      notice of such change of address to the other Party, which change of address
      shall only be effective when notice of the change is actually received by the
      Party who thereafter sends any notice, demand, or request.

     

    13. Counterparts.
      This
      Settlement Agreement may be executed in multiple counterparts, each of which
      shall be deemed an original and all of which shall constitute one and the same
      instrument. A facsimile or electronically reproduced signature shall constitute
      due execution, shall be admissible as evidence of execution, and shall be
      binding upon the signatory with the same force and effect as if the signature
      were an original.

     

    [Signature
      Page Follows]

    SETTLEMENT
      AGREEMENT

     

    
      
        
        

      

      
        Page
          5 of
          7

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Parties have executed and delivered this Settlement Agreement. 

     

    
      	
              CHINAMERICA
                FUND, LP

            
	 
	
              By
                Chinamerica Partners, LP

            
	
              Its
                General Partner

            
	 	 
	 	
              By
                Chinamerica Holdings, LLC

            
	 	
              Its
                General Partner

            
	 	 
	
              By:
                

            	 
	
              Name:  

            	
              Beau
                Johnson

            
	
              Title:

            	
              Its
                Manager

            
	 	 
	
              CHINA
                BAK BATTERY, INC.

            
	 	 
	
              By:

            	 
	
              Name:

            	
              Tony
                Shen

            
	
              Title:

            	
              Chief
                Financial Officer

            
	 	 
	
              BAK
                International, Inc.

            
	 	 
	
              By:

            	
               

            
	
              Name:

            	 
	
              Title:

            	 

    

    SETTLEMENT
      AGREEMENT

    
      
        
        

      

      
        Page
          6 of
          7

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    CHINA
      BAK BATTERY, INC.

    

    SELLING
      STOCKHOLDER QUESTIONNAIRE

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