Document:

Share Purchase Agreement, dated November 19, 2004

 Exhibit 4.46 
  
 Date:            , 2004 
  
 TOM ONLINE MEDIA GROUP LIMITED 
  
 ZHANG DONG 
  
 JIA SHU YUN 
  
 and 
  
 KEY RESULT HOLDINGS LIMITED 
  

  
 AGREEMENT 
  
 on sale and purchase of

  
 the entire issued shares of 
  
 Whole Win Investments Limited 
  

 TABLE OF CONTENTS 
  

			
	1.	  	DEFINITIONS
		
	2.	  	RESTRUCTURE AND TRANSFER FRAMEWORK
		
	3.	  	RESTRUCTURE
		
	4.	  	SHARE TRANSFER
		
	5.	  	RESTRICTIONS ON SALES OF CONSIDERATION SHARES
		
	6.	  	CONSOLIDATED STATEMENTS
		
	7.	  	CONDITIONS PRECEDENT ON SHARE TRANSFER
		
	8.	  	COMPLETION AND MANAGEMENT OF THE NEW COMPANY AND STARTONE AFTER COMPLETION
		
	9.	  	NON-COMPETITION
		
	10.	  	REPRESENTATIONS AND WARRANTIES OF THE PARTIES
		
	11.	  	DUE DILIGENCE
		
	12.	  	TAX AND COMPENSATION LIABILITIES
		
	13.	  	CONFIDENTIALITY
		
	14.	  	EXCLUSIVENESS
		
	15.	  	FORCE MAJEURE
		
	16.	  	BREACH OF AGREEMENT
		
	17.	  	APPLICABLE LAW
		
	18.	  	DISPUTE RESOLUTION
		
	19.	  	ENTIRE AGREEMENT AND AMENDMENT
		
	20.	  	NOTICE AND DELIVERY
		
	21.	  	EFFECTIVENESS

  

			
		
	SCHEDULE A	 	PARTICULARS OF PARTY B(1) AND PARTY B(2)
		
	SCHEDULE B	 	RESTRUCTURE FRAMEWORK CHART
		
	SCHEDULE C	 	MANAGEMENT LIST
		
	SCHEDULE D	 	RELEVANT CONTRACTS LIST

 AGREEMENT ON SALE AND PURCHASE OF THE ENTIRE 
  
 ISSUED SHARES OF WHOLE WIN INVESTMENTS LIMITED 
  
 THIS AGREEMENT is made as of
this             day of                , 2004 by and among: 
  

	(1)	Party A: TOM ONLINE MEDIA GROUP LIMITED, whose registered address is P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands;

  

	(2)	Party B(1) and Party B(2) (collectively referred to as Party B) whose information is listed in Schedule A hereto; and 

  

	(3)	Party C: Key Result Holdings Limited, whose registered address is P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. 

 
 WHEREAS: 
  

	(A)	Party A and Party C are limited liability companies duly incorporated and validly existing under the laws of BVI. 

  

	(B)	Party B(1) and Party B(2) (the information of both are listed in Schedule A hereto) are the only shareholders of Startone (as hereinafter defined). 

  

	(C)	Party B(1) (as hereinafter defined) and Party B(2) (as hereinafter defined) are the Chinese citizens with full civil capacity respectively, while Party B(1) owns 100% shares of
Party C who owns 100% shares of Startone (Beijing) Information Technology Company Limited (as hereinafter defined). In addition, Party B(1) owns 70% shares of Startone while Party B(2) owns 30% shares of Startone (See “Schedule B Restructure
Chart” for more details). 

  

	(D)	Party A, Party B and Party C unanimously agree that Party A shall, subject to the provisions hereof, purchase 100% shares of Whole Win held by Party C in order to strengthen Party
A’s leading position in the field of value-added wireless business. 

 NOW THEREFORE, the Parties have reached this agreement in respect of the cooperation matters as follows: 
  

	1.	Definitions 

  

	1.1	In this Agreement, unless the context otherwise requires, the following words and expressions shall have the following meanings: 

  
 “Party A” means a limited liability company duly incorporated and
existing under the laws of BVI; 
  
 “Natural Persons
Appointed by Party A” means Mr. Liu Bing Hai and Mr. Pu Dong Wan; 
  
 “Party B” means Mr. Zhang Dong and Ms. Jia Shu Yun with Mr. Zhang Dong as Party B(1) and Ms. Jia Shu Yun as Party B(2); 
  
 “Party C” means Key Result Holdings Limited, a limited liability company duly incorporated and validly existing under the laws of BVI;

  
 “Startone” means Startone (Beijing) Information
Technology Company Limited, a limited liability company in PRC incorporated and validly existing under the law of the People’s Republic of China, 70% and 30% of the shares of which are respectively in the possession of Party B(1) and Party
B(2). Startone’s major operation is value-added wireless business; 
  
 “Restructure and Transfer Framework” means a series of restructure and transfer which Party B is responsible to complete, including: 
  

	 	(1)	Whole Win shall purchase the entire shares of a wholly foreign-owned enterprise incorporated and existing in PRC (hereinafter referred to as the “New Company”, as defined
hereunder) whose business license number is No.QiDuJinZongFuZiDi020648 and whose business scope is those permitted by laws, regulations and industrial policies for foreign investment; 

  

	 	(2)	Party B shall hereunder make its greatest efforts to cause Startone (and/or its shareholders Party B(1) and Party B(2)) to execute relevant contracts (as hereinafter defined,
including legal documents such as Exclusive Technical and Consulting Services Agreement, Exclusive Option Agreement, Loan Agreement, Business Operation Agreement, Share Pledge Agreement, Share Transfer Agreement, Warranty and Indemnification
Agreement, and Power of Attorney, etc.) with Party A (including its appointed natural person(s)) and/or the New Company, in order to establish a series of legal relationship between the New Company and Startone; and 

  

	 	(3)	 Party A shall purchase the entire issued shares of Whole Win from Party C subject to the terms of this Agreement after: (i) Whole Win has obtained the shares of the

 
New Company, (ii) Relevant Contracts have been entered into and become effective among Party A (including its appointed natural person(s)), the New Company,
Startone and its shareholders Party B(1) and Party B(2), and (iii) the conditions precedent in respect of the share transfer herein have been satisfied; 
  
 “New Company” means Heng Dong Wei Xin (Beijing) Technology Company Limited, a wholly foreign-owned enterprise incorporated in Beijing, China.
Party B shall cause Whole Win to hold its entire shares; 
  
 “Share Transfer” means the entire issued shares of Whole Win. Party A shall purchase from Party C at the Completion Date after the New Company completes the restructure according to Article 3 hereunder and the Conditions Precedent
(as hereinafter defined) have been satisfied according to Article 7 hereunder; 
  
 “Completion” means legal and valid completion of share transfer pursuant to all applicable laws, regulations, bylaws and/or rules, which is symbolized by registration of all the issued shares of Whole Win
altered to the name of Party A, or as of April 30, 2005, if some of the conditions precedent have not been satisfied or waiver fails to apply subject to Article 7.2 hereunder, and Party A decides to adopt other legal arrangements, completion is
deemed done by Party A’s actually obtaining the entire shares of the New Company by other legal arrangements it selects and indirectly obtaining the interests of Startone by signing the Relevant Contracts; 
  
 “Completion Date” means a date no later than the tenth Business
Day after the date of fulfillment or waiver of the last of Conditions Precedent (or waiver applied in accordance with Article 7.2 hereunder), or a date otherwise agreed in writing by the parties hereto; 
  
 “Free of Pledge” means free of any mortgage, pledge, equity,
claim, priority or any other restrictions or third party rights on affiliated interests; 
  
 “China Mobile” means China Mobile Telecommunication Group Co., Ltd and/or its affiliated companies in relation to its business; 
  
 “PRC” or “China” means in terms of this Agreement, mainland of the People’s Republic of China,
excluding Hong Kong Special Administrative Region(as hereinafter defined), Macau Special Administrative Region and Taiwan; 
  
 “Hong Kong” means Hong Kong Special Administrative Region, China; 
  
 “HKSE” means Stock Exchange of Hong Kong Limited; 

 “Business Day” means any day (excluding Saturday and Sunday) on which banks are open in PRC for
the transaction of normal banking business; 
  
 “Listing
Rules of the Growth Enterprise Market” means Listing Rules of the Growth Enterprise Market of Stock Exchange of Hong Kong Limited; 
  
 “Conditions Precedent” means the conditions precedent set forth in Article 7.1 hereunder; 
  
 “Management Team” means the chief officers and other necessary
staff of Startone, whose names are listed in Schedule C; 
  
 “Relevant Contracts” means the legal documents that shall be executed among the New Company, Party A (including its appointed natural person(s)) and Startone (and/or its shareholders Party B(1) and Party B(2)), including Exclusive
Technical and Consulting Services Agreement, Exclusive Option Agreement, Loan Agreement, Business Operation Agreement, Share Pledge Agreement, Share Transfer Agreement, Warranty and Indemnification Agreement, and Power of Attorney, all having to be
agreed by Party A with its content and form (see relevant provisions in Schedule D for more details); 
  
 “Consideration” means the total consideration for the transactions hereunder as is calculated and decided in accordance with Article 4.2 hereof;

  
 “Audited” or “Financial Audit” means the
financial audit conducted by the auditor(s) acknowledged by Party A and Party B pursuant to the U.S. generally accepted accounting principles; 
  
 “BVI” means British Virgin Islands; 
  
 “NASDAQ” means the National Association of Securities Dealers Automated Quotations, USA; 
  
 “TOM Share” means the share of TOM Online with the par value of
HKD 0.10. 
  
 “TOM” or “TOM Online” means TOM
ONLINE INC., a limited liability company registered in Cayman Islands, whose share is listed in the growth enterprise market of HKSE and NASDAQ; 
  
 “WAP” means Wireless Application Protocol, a global standard for developing applied programs on wireless telecommunication net; 

 “Whole Win” means Whole Win Investments Ltd., a limited liability company incorporated and
validly existing under the laws of BVI, the entire shares of which are actually owned by Party C; and 
  
 “Whole Win Group” means Whole Win Investments Ltd., the New Company and Startone. 
  

	1.2	In this Agreement, unless the context otherwise requires: 

  

	 	(1)	Reference to all the liabilities (including but not limited to warranties and undertakings) of Party B shall include the separate and joint liabilities. Either of Party B(1) and
Party B(2) is obliged to perform relevant liabilities individually or jointly with the other of Party B until the fulfillment of all the liabilities; 

  

	 	(2)	The headings are inserted for convenience only and shall not construed as part of this Agreement and without assistance to the construction of this Agreement;

  

	 	(3)	The Schedules hereto shall be deemed integral parts of this Agreement and shall be in the same force and effect as the other parts of this Agreement. 

  

	 	(4)	The payment date hereunder will be automatically postponed to the next Business Date in case of non-Business Day. 

  

	2.	Restructure and Transfer Framework 

  

	2.1	Party B shall be obliged to cause Whole Win to purchase the shares of a New Company in Beijing, China and shall further cause Startone and/or its shareholders Party B(1) and Party
B(2) to execute the Relevant Contracts pursuant to this Agreement with the New Company and Party A (including its appointed natural person(s)). After the due establishment of the New Company, the proper execution of the Relevant Contracts and the
fulfillment or waiver of all the Conditions Precedent set forth in this Agreement, Party C shall sell to Party A the entire issued shares of Whole Win, while Party B shall, after the Completion of the Share Transfer, provide Party A and its group
with effective support by means of its current expertise, management and operation, technical capability in connection with value-added wireless business, in order to strengthen TOM Group’s leading position in the field of value-added wireless
business in China. 

	3.	Restructure 

  

	3.1	The share of the New Company purchased by Whole Win in Beijing is detailed as follows: 

  

	 	(1)	The nature of the New Company is a wholly foreign-owned enterprise. 

  

	 	(2)	The name of the New Company is Heng Dong Wei Xin (Beijing) Technology Company Limited, whose business license number is No.QiDuJinZongFuZiDi020648. 

  

	 	(3)	The registered capital of the New Company is USD 0.15 million. 

  

	 	(4)	The business scope of the New Company is the business operations not prohibited by laws, regulations; decisions issued by the State Council and industrial policies for foreign
investment and may be selected at its own discretion. 

  

	 	(5)	Party B shall make its best efforts to cause the New Company to legally conduct its independently chosen business operations and obtain all the necessary business permits for its
legal operation (if required). 

  

	3.2	Personnel Arrangement 

  
 Party B shall undertake to cause the chief officers and other necessary staff of Startone (i.e. Management Team, as listed in Schedule C) to execute a
service contract with the New Company prior to the Completion in the form and content satisfied by Party A and with a term of two years (from the Completion Date). 
  

	3.3	Contractual Relations 

  
 Party B undertakes and warrants that the New Company shall execute the Relevant Contracts with Startone (and/or its shareholders Party B(1) and Party
B(2)) and the Natural Persons Appointed by Party A. The content and form of the Relevant Contracts shall be in accordance with all the contracts listed in Schedule D and agreed by Party A, Party B, etc., which establishes a series of legal relations
between the New Company and Startone, including: 
  

	 	(1)	Exclusive Technical and Consulting Services Agreement between the New Company and Startone, according to which the New Company shall provide Startone with and Startone shall accept
the cooperation on technical consultancy and counseling and pay the New Company the profit accrued under this Agreement; 

	 	(2)	Business Operation Agreement among the New Company and Startone and its shareholders (the Natural Persons Appointed by Party A), according to which the New Company, for the purpose
of ensuring the normal business operation of Startone, shall act as the warrantor for Startone performing in all aspects the contracts, agreements or transactions relating to its business operation executed with any third party, and Startone, as the
counter-guarantor, agrees to mortgage to the New Company its receivables during its business operation and all its assets; 

  

	 	(3)	Exclusive Option Agreement between the shareholders of Startone (the Natural Persons Appointed by Party A) and Whole Win, according to which the shareholders of Startone shall grant
Whole Win the exclusive share purchase right to purchase all or part of its shares in Startone if PRC laws and regulations so permit. 

  

	 	(4)	Share Pledge Agreement between the shareholders of Startone (the Natural Persons Appointed by Party A) and the New Company, according to which the shareholders of Startone
(including all the shareholders before or after the Completion) shall pledge its shareholdings in Startone to the New Company as the guarantee for Startone to perform the payment of profits accrued from consultancy under the aforesaid Exclusive
Option Agreement; 

  

	 	(5)	Share Transfer Agreement among Party B(1), Party B(2) and the Natural Persons Appointed by Party A, according to which Party B(1) and Party B(2) shall transfer 70% and 30%
respectively of Startone’s shares in their hands to the Natural Persons Appointed by Party A; 

  

	 	(6)	Power of Attorney between the shareholders of Startone (the Natural Persons Appointed by Party A) and the persons appointed by the New Company, according to which the persons
appointed by the New Company shall be fully authorized to exercise all the rights as a shareholder of Startone under the Power of Attorney; 

  

	 	(7)	Loan Agreement between Whole Win and the Natural Persons Appointed by Party A, according to which Whole Win shall provide the Natural Persons Appointed by Party A with loan, while
the latter shall, after purchasing the shares of Startone transferred by Party B, use the loan solely in the business operation of Startone for the development of Startone’s business; 

  

	 	(8)	 Warranty and Indemnification Agreement between Party A and Party B, according to which Party B shall warrant to Party A to compensate for any loss Party A incurs
due to and in respect of the following matters: (i) those that should occur before Party A is registered as the shareholder of Whole Win by law; (ii) those that should 

 
occur before the Natural Persons Appointed by Party A purchase the shares of Startone transferred by Party B(1) and Party B(2); and (iii) Whole Win takes
hold of the shares of the New Company by law. 
  

	4.	Share Transfer 

  

	4.1	Share Transfer 

  
 At the Completion Date after the fulfillment of the Conditions Precedent set forth in Article 7.1 or any waiver thereof in accordance with Article 7.2,
Party C shall sell to Party A and Party A shall purchase from Party C the entire issued shares of Whole Win. The share shall be sold with all rights and interests attaching to share transfer together with the entire issued shares of Whole Win,
including the rights to receive all distributions and dividends as declared, made or paid in respect of such share on or after the Completion. 
  

	4.2	Consideration of Transaction 

  

	 	(1)	The consideration of transaction is calculated and based upon the estimated value subject to Article 4.2(3) plus RMB 9 million yuan with a cap of RMB 69 million yuan (viz. RMB
69,000,000 yuan), and paid in cash in HKD or USD based on Article 4.2(4). 

  

	 	(2)	The estimated price of Whole Win is calculated in the following method, provided that in no event the total estimation of Whole Win shall be more than RMB 60 million yuan (viz. RMB
60,000,000 yuan). 

  

	 	(3)	In terms of the estimation method in above-mentioned Article 4.2(2): 

  

	 	(a)	Where the audited and consolidated profit after taxation for the year 2004 of Whole Win Group is or less than RMB 6 million yuan, the estimated price shall be 5.5 times of such
profit. 

  

	 	(b)	Where the audited and consolidated profit after taxation for the year 2004 of Whole Win Group is more than RMB 6 million yuan but equals to or less than RMB 8 million yuan, the
estimated price shall be 6 times of such profit. 

  

	 	(c)	Where the audited and consolidated profit after taxation for the year 2004 of Whole Win Group is more than RMB 8 million yuan, the estimated price shall be 6.5 times of such profit.

	 	(d)	If the above audited profit of Whole Win Group or any part is received or recorded in the currency other than RMB, in terms of the calculation provided in the aforesaid (i), (ii)
and (iii), the profit shall be calculated on the basis of the foreign exchange rate (the mean price between purchase and sale) announced by Bank of China on the Business Day preceding the payment date. 

  

	 	(4)	When calculating the aforesaid audited and consolidated profit after taxation of Whole Win Group for the year 2004 set forth in aforesaid Article 4.2(3), the Parties agree to
exclude amortization of intangible assets arising from such share transfer. 

  

	4.3	Payment of Consideration 

  
 All Parties agree that after the fulfillment or waiver subject to Article 7.2 hereunder of all Conditions Precedent and further provided that Completion
has been legitimately and effectively achieved on the Completion Date, the transaction consideration shall be paid by Party A to Party C in two phases: 
  

	 	(1)	Initial Payment 

  
 The initial payment amounts to the HKD equivalent of RMB 27 million yuan (viz. RMB 27,000,000 yuan) (“Initial Payment”), RMB 18 million yuan of
which shall be paid to Party C in cash within 15 working days after the Completion and the remaining RMB 9 million yuan shall be paid to Startone in cash within 12 months after Completion subject to the instructions by Party C. 
  

	 	(2)	Second Payment 

  
 The total amount of the second payment is: the estimated value (determined in accordance with the rules set forth in Article 4.2(3)) save RMB 18 million
yuan of the Initial Payment (“Second Payment”). 
  
 If
the estimated value is higher than RMB 18 million yuan, then: 
  

	 	(a)	Party A shall pay all the Second Payment in cash; or 

  

	 	(b)	Party A shall pay before December 31, 2004 in either of the following ways: 

  

	 	i)	20% of the Second Payment in cash; and 

	 	ii)	the outstanding 80% of the Second Payment by TOM Share (“Consideration Share”). The offering price per Consideration Share shall be calculated on the basis of the average
stock price during 30 transaction days prior to the date issuing the annual audit report of Whole Win Group for the year 2004. 

  
 The payment shall be made within 15 business days after the annual audit report of Whole Win Group for the year 2004 is completed and submitted to Party A
and Party C by the auditor. 
  

	 	(3)	Deposit 

  

	 	(a)	Party C agrees to set aside the amount equivalent of RMB 5 million yuan from the Consideration Shares paid by Party A to Party C in the Second Payment as the deposit Party B put in
Party A’s hand, to ensure Party B to perform the warranties and undertakings under Article 11.2(1) hereof. If all the Second Payment is in cash, such HKD equivalent of RMB 5 million yuan shall be deposited in Party A’s designated account
in cash; and 

  

	 	(b)	If Party A is satisfied with Party B’s fulfillment of the warranties and undertakings under Article 11.2(1) hereof, it shall return to Party C the deposit in its hand
equivalent of RMB 5 million yuan or the equivalent Consideration Shares on or before January 31, 2006. 

  

	 	(4)	The foregoing Initial Payment and Second Payment shall both be made in HKD or USD on the basis of the foreign exchange rate (the mean price for purchase and sale) announced by the
Bank of China ten business days prior to the payment date. 

  

	4.4	After the Initial Payment has been made by Party A pursuant to Article 4.3 hereof, Party C shall return to Party A in cash the Relevant Discrepant Amount (as hereinafter defined)
after the estimated value has been determined under Article 4.2 hereof and within 45 business days after the auditor has submitted to Party A and Party C the annual financial audit report for the year 2004 of Whole Win Group, provided that the
estimated value determined under Article 4.2 hereof is lower than RMB 18 million yuan (the discrepant amount is referred to as the “Relevant Discrepant Amount”). 

  

	4.5	In terms of the foregoing Article 4.3, 

  

	 	(1)	 Party C agrees that Party A shall make the Initial Payment (HKD equivalent of RMB 18 million yuan) out of the transaction consideration in the way which is 

 
indicated in the written notice given by Party C. Party C warrants that such notice shall be sent to Party A at least three business days before the Initial
Payment date. 
  

	 	(2)	In case Party A makes the payment and returns the deposit under Article 4.3(2) and Article 4.3(3) hereof, Party C agrees that the relevant payment shall be made in the way which is
indicated in the written notice given by Party C to Party A. Party C warrants that such notice shall be sent to Party A at least three business days before the Second Payment date and the date when the deposit is returned. 

 

	 	(3)	Party A shall pay the Transaction Consideration according to Article 4.5(1) and Article 4.5(2) hereof only if the payment conditions decided by Party C is in compliance with laws
and regulations, or Party A shall be entitled to claim for the alteration of such in order for Party A to pay the Transaction Consideration in a legitimate way. 

  

	4.6	The average stock price of TOM Share during the relevant 30 transaction days refers to the quotient by dividing total completion price of each transaction day of such 30 days
announced by HKSE by 30 and then converted into the equivalent RMB amount based on the foreign exchange rate announced by the Bank of China ten business days prior to the payment date for the calculation use of the Consideration Shares under the
foregoing Article 4.3. 

  

	5.	Restrictions on Sales of Consideration Shares 

  

	5.1	Party C warrants to Party A that in respect of each batch of Consideration Shares, Party C shall not sell, lease, pledge or mortgage such batch or dispose of the Consideration
Shares or any part of which in any other way within 3 months after the relevant Consideration Shares have been issued (hereinafter referred to as the “Lockout Period”). After the Lockout Period, the aforementioned restrictions shall no
longer apply to this batch of Consideration Shares, but the quantity of such shares sold on each transaction date shall not exceed 5% of the same. Party C shall execute a Share Pledge Letter with the content and form to be agreed by Party A on
Completion stating that the Consideration Shares shall be mortgaged to Party A during the Lockout Period. 

  

	6.	Consolidated Statements 

  

	6.1	Party A shall be entitled to share and consolidate the income and profits of Whole Win Group from the execution date of this Agreement. 

	7.	Conditions Precedent on Share Transfer 

  

	7.1	The following Conditions Precedent herein shall be satisfied and shall come into effect unless they are waived according to Article hereof: 

  

	 	(1)	The PRC legal opinions submitted by Party B or Party C to Party A (The PRC law firm issuing such PRC legal opinion and the content and form of the same shall be to Party A’s
satisfaction) confirms and verifies the following matters: 

  

	 	(a)	The New Company has been established and registered under the PRC laws, obtained all the approvals, certificates of approval, business license and other licenses for its business
operation (if necessary by law) and entitled to be engaged in the business activities chosen independently; 

  

	 	(b)	This Agreement and Relevant Contracts are valid, legitimate, enforceable and have binding force by law and on the signing parties. The contemplated transaction is in compliance with
all the applicable PRC laws, regulations and bylaws and in force and effect in terms of its content, structure and payment for consideration; 

  

	 	(c)	Both Party B(1) and Party B(2) are Chinese citizens with full civil capacity; 

  

	 	(d)	Party B(1) legitimately and actually holds 70% of Startone’s shares; 

  

	 	(e)	Party B(2) legitimately and actually holds 30% of Startone’s shares; 

  

	 	(f)	Startone’s share is free of any mortgage, pledge, priority and any other restrictions on satisfying its interests; and 

  

	 	(g)	Holding of all the shares of the New Company by Whole Win is legitimate and the New Company would not encounter any obstacle hereby when executing the Relevant Contracts.

  

	 	(2)	The service contract with a term of 2 years between Party B(1) and each member of the Management Team as a party and the New Company as the other party in accordance with Article
3.2 hereof includes not participating any business operation or asset operation in relation to this transaction or any business competing with the business of the New Company or Startone, and not doing any harm to the interests of the New Company or
Startone. The form and content of the service contract shall be approved by Party A and Party B in writing. 

	 	(3)	The Relevant Contracts have been entered into among Party A (including its appointed natural person(s)), the New Company, Startone and/or its shareholders, Party B(1) and Party B(2)
with the content and form in strict compliance with Schedule D and such Relevant Contracts have gone through all the formalities by the law of its applicable country and become valid. 

  

	 	(4)	Startone has obtained Beijing License for Value-added Telecommunication Business regarding information service business of mobile net and the License for Cross-region Value-added
Telecommunication Business issued by the Ministry of Information Industry. 

  

	 	(5)	Party A, Party B and Party C or their authorized representatives have duly executed this Agreement. 

  

	 	(6)	The board of directors of Party A has passed the resolution on the terms and conditions of this Agreement and the contemplated transactions hereunder. 

  

	 	(7)	Party B has, as required by Party A and/or its appointed persons, provided Party A and/or its appointed persons with the true, accurate and complete documents evidencing the
business operation, assets, financial and legal status, profit performance and commercial prospects of Whole Win, the New Company and Startone and other institutions relating to this transaction. Party A and/or its appointed persons have completed
due diligence on the legal, financial and technological (except Party B as for this item) status of the companies relating to this transaction and Party B and the result of which shall be to the content of Party A who shall confirm that all the
obstacles to this transaction in the due diligence report stating the financial and legal status have been cleared to its satisfaction. 

  

	 	(8)	Party B(1) has provided Party A with the legal opinion issued by a lawyer registered in BVI to its satisfaction, which confirms and verifies that: (i) Party C and Whole Win have
been established, registered and validly existing under the laws of BVI; (ii) Party B owns 100% shares of Party C by the applicable law and in fact; (iii) Party C owns 100% shares of Whole Win by law and in fact; and (iv) all the relevant shares are
free of mortgage. 

  

	7.2	Party A may notify Party B in writing of waiver of any of the Conditions Precedent at any time except for those set forth in Article 7.1(6) hereof (if necessary).

	7.3	The Parties shall satisfy or cause the satisfaction of the Conditions Precedent set forth in Article 7.1(3) and (5) on or prior to the date designated in Article 7.4 hereof with
reasonable efforts, while Party B and/or Party C shall satisfy or cause the satisfaction of the Conditions Precedent set forth in Article 7.1(1) to (4), (7) and (8) on or prior to the date designated in Article 7.4 hereof with reasonable efforts.

  

	7.4	If any of the Conditions Precedent fails to be satisfied on or before April 30, 2005, or be waived under Article 7.2 hereof, this Agreement (except for Article 7, 13, 14, 15, 17 to
21, collectively as “Surviving Terms”) and all the liabilities and rights hereunder shall be deemed null and void. 

  

	8.	Completion 

  

	8.1	Completion of the transaction hereunder shall take place at Party A’s office on the Completion Date (or other date and/or place agreed by the Parties).

  

	8.2	Upon the completion, Party C shall (and Party B shall cause Party C to): 

  

	 	(1)	deliver the following documents and objects to Party A with regard to Whole Win: 

  

	 	(a)	Certificate of Good Standing and Certificate of Incumbency of Whole Win; 

  

	 	(b)	the originals of the shares regarding the entire issued shares of Whole Win and share transfer (Party A (or its agent) as the transferee) documents duly executed by the transferor;

  

	 	(c)	the board resolution of Whole Win which (aa) approves the transfer of the entire issued shares from Party C to Party A and Party A’s (or its agent) registration in the
shareholders name list of Whole Win which clarifies Party A’s acting as a shareholder of Whole Win; (bb) assumes the persons appointed by Party A as directors and corporate secretary of Whole Win; (cc) passes the resignation of the original
directors, corporate secretary and auditors of Whole Win; (dd) passes the alteration of registration for the offices (if necessary); and (ee) passes the replacement of the person whose signature is effective in banks (if necessary);

  

	 	(d)	the board of directors and shareholders of Party C shall pass the terms and condition of the master agreement and execute the relevant document regarding the share transfer;

	 	(e)	all power of attorney, waiver, consent, board resolution, resolution of shareholders and other documents required by completion of the share transfer and making Party A (or its
agent) registered holder of the entire issued shares of Whole win; 

  

	 	(f)	all the incorporation documents, legal documents and books, accounting books, name lists and records, registration certificate, corporate seals, stamps, stock books, depository
certificates, check books, monthly settlement bills and all the relevant materials of Whole Win; and 

  

	 	(2)	cause the persons appointed by Party A to be assumed directors and corporate secretary of Whole Win and after such assumption, cause the original directors and corporate secretary
of Whole Win to resign without compensation and confirm in writing there shall be no claim of any nature against Whole Win. 

  

	 	(3)	deliver the following documents and objects with regard to the New Company: 

  

	 	(a)	the original approvals and certificates of approval of the New Company; 

  

	 	(b)	original business license of the New Company; 

  

	 	(c)	original licenses for special business operation (if applicable); 

  

	 	(d)	corporate seal and all other seals; and 

  

	 	(e)	resignation letters of the original directors of the New Company (stating that they would not claim for any compensation or liabilities against the New Company and Whole Win),
letters issued by Whole Win for canceling the appointment of the original directors and documents appointing the persons validly designated by Party A the new directors of the New Company. 

  

	 	(4)	deliver to Party A the Beijing License for Value-added Telecommunication Business regarding information service business of mobile net and the License for Cross-region Value-added
Telecommunication Business issued by the Ministry of Information Industry which Startone has obtained. 

  

	 	(5)	Any documents listed in the checklist requested by Party A and its directly or indirectly held companies (if applicable) in accordance with the requirements of HKSE, Hong Kong
Securities and Futures Commission, Hong Kong Corporate Registry, NASDAQ and other relevant legal rules. 

  

	 	(6)	deliver to Party A the Relevant Contracts duly executed among the New Company, Startone, Party B and Party C. 

	 	(7)	alter the authorized executor and signing instructions in all bank accounts of Whole Win, the New Company and Startone as required by Party A and present the corresponding evidence.

  

	8.3	If Party B or Party C fails to complete all the matters set forth in Article 8.2 hereof, Party A shall be entitled to choose: 

  

	 	(1)	postponing the Completion (this Article 8.3 shall still prevail in such case); 

  

	 	(2)	conducting the Completion under the circumstances practicable (without prejudice to any rights of Party A hereunder); or 

  

	 	(3)	revoking this Agreement. 

  
 This Article 8.3 shall not affect any rights of Party A hereunder. 
  

	9.	Management of the New Company and Startone after Completion 

  

	9.1	Legitimate Operation 

  

	 	(1)	Party B(1) shall use its best efforts to ensure the legitimate business operation of the New Company after the Completion, and to obtain the necessary business licenses.

  

	 	(2)	Party B(1) shall use its best efforts to allow Startone to continue its current business in value-added wireless field by law, and to maintain the legitimate and valid status of all
its business licenses. 

  

	9.2	Day-to-day Management 

  
 After the Completion, Mr. Zhang Dong shall still be the general manager of Startone and is in charge of the day-to-to management. The deputy general
manager and the financial director of Startone shall be nominated by Party A and appointed by the board of Startone. 

	10.	Non-competition 

  

	10.1	Unless otherwise agreed by Party A in writing in advance, Party B warrants that, within three years after final agreement is signed, Party B and Party C shall not participate,
directly or indirectly, in the current business competing with that of Whole Win, the New Company or Startone in any form. Such warranty includes but not limited to: 

  

	 	(1)	Party B and Party C and their directly or indirectly controlled companies will not invest in or indirectly hold control or shares of any enterprise or other institution competing
with the current business of Whole Win, the New Company or Startone in any form. The behavior shall be deemed as attributing to Party B if such behavior is conducted by Party C and its subsidiaries or shareholding companies, enterprises and
institutions invested or controlled by Party B’s spouse, parents or children which contest the business of Whole Win, the New Company or Startone. 

  

	 	(2)	Party B shall not take any position in or be a counsel or provide consultancy service for any enterprise and institution competing with the business of Whole Win, the New Company or
Startone. The behavior would be deemed as attributing to Party B if such behavior is conducted by Party C and its subsidiaries or companies invested by Party C, Party B’s spouse, parents or children who takes a position in or provides
counseling or consultancy services for enterprises and institutions contesting the business of Whole Win, the New Company or Startone. 

  

	11.	Representations and Warranties of the Parties 

  

	11.1	Party A hereby represents and warrants that: 

  

	 	(1)	Party A is a limited liability company incorporated and validly existing under the laws of BVI, has obtained the corresponding approvals from the relevant authorities in terms of
the cooperation matters hereunder, has authorized its representative to execute the Agreement and has made Party A be bound by this Agreement. 

  

	 	(2)	Any document or written information in relation hereto provided by Party A for the execution and performance of this Agreement is in all aspects true and accurate.

  

	 	(3)	Party A shall pay for the Transaction Consideration to Party C subject to the terms, conditions and payment conditions hereunder. 

  

	11.2	Party B (including Party B(1) and Party B(2)), individually or collectively, consistently and irrevocably, makes the representations, warranties and undertakings as follows:

  

	 	(1)	Unless China Mobile adjusts the relevant business policies or TOM adjusts the operation strategies, Startone or TOM Online shall have at least 3 new WAP products (whatever the type)
in those that China Mobile promotes in Fresh-cooked, a WAP business column introducing monthly the classic products during 2005. 

 The Parties agree that, in case Party A incurs loss due to the foregoing reasons, Party A is entitled to
decide to deduct reasonable amount for compensation from the deposit under Article 4.3(3) hereof at its own discretion, and if China Mobile adjusts the relevant business policies or TOM adjusts the operation strategies, the Parties shall conduct
further discussion on another benchmark for business warranties; 
  

	 	(2)	Party B (Party B(1) or Party B(2)) is a Chinese citizen with full civil capacity, who is fully capable of performing the cooperation matters hereunder. In addition, Party B is able
to obtain all the approvals from the relevant authorities governing Startone, Party C, Whole Win and the New Company, to authorize its representative to execute other agreements and documents relating to this Agreement and to be bound by this
Agreement. 

  

	 	(3)	Party B warrants to establish in a timely manner the New Company according to Article 3 hereof and complete the matters under Article 3 such as restructure and building up
contractual relations; 

  

	 	(4)	Party B warrants that any document or information regarding this Agreement provided by Party B for the execution and performance of this Agreement is in all aspects true, complete
and accurate and is not fraud, omissive or misleading; 

  

	 	(5)	Startone is a limited liability company duly incorporated and validly existing, which is permitted to be engaged in value-added wireless business. All its current cooperation
agreements (listed in Schedule E) are true, legitimate and valid. After the Completion, Party B will make greatest efforts to ensure the normal execution of the major agreements during the terms thereof; 

  

	 	(6)	Startone and its branches have all obtained all approvals, licenses, registration certificates and registries required for operating the current business. All such approvals,
licenses, registration certificates have full legal force and effect, and will not terminate or be revoked due to this Agreement; 

  

	 	(7)	There is no potential or on-going or (to the best of Party B’s knowledge) pending litigation, arbitration or administrative proceedings or other claims relating to Party B,
Whole Win, Startone and the New Company other than those disclosed to Party A in writing before the execution date hereof (such disclosure letter shall be confirmed and signed by Party A and Party B); 

	 	(8)	All the assets of Whole Win, Startone and the New Company are owned by law, and free of any warranty, mortgage, pledge and other guarantee unless disclosed to Party A in writing
before the execution date hereof (such disclosure letter shall be confirmed and signed by Party A and Party B). Further, Whole Win, Startone and the New Company have not provided any guarantee in any form for any third party;

  

	 	(9)	Whole Win and the New Company have never been engaged in any business or activity, or executed any contract or agreement, or established any legal relationship, or created or
undertaken any indebtedness (including contingent indebtedness) or liability except for the contract executed and transaction conducted pursuant to Article 2 and Article 3 hereof and those disclosed to Party A in writing before the execution date
hereof (such disclosure letter shall be confirmed and signed by Party A and Party B); 

  

	 	(10)	Startone has never created or undertaken any indebtedness (including contingent indebtedness) or liability except for the contract executed and transaction conducted pursuant to
Article 2 and Article 3 hereof and those disclosed to Party A in writing before the execution date hereof (such disclosure letter shall be confirmed and signed by Party A and Party B); 

  

	 	(11)	All shares of Whole Win are free of any pledge, mortgage, warranty or other third party interest set by any party unless disclosed to Party A in writing before the execution date
hereof (such disclosure letter shall be confirmed and signed by Party A and Party B); 

  

	 	(12)	From the execution date till the Completion Date, all the business of Whole Win, Startone and the New Company is in its ordinary course, consistent and uninterrupted, and free of
any material and negative change; 

  

	 	(13)	Party B shall use its best efforts to satisfy the requirements of Party A and its directly or indirectly held companies (if applicable) to request Party C and/or Party B to provide
and/or issue any document pursuant to the rules of HKSE, Hong Kong Securities and Futures Commission, Hong Kong Corporate Registry, NASDAQ and other applicable laws and/or rules; 

  

	 	(14)	 Up to the Completion Date, Whole Win and/or the New Company and/or Startone has/have never been engaged in any business that has infringed or shall infringe 

 
any legal interest and right of any third party, including but not limited to patent, trademark, copyright and other similar right, and Party B shall
undertake for all the relevant liabilities due to such infringement; 
  

	 	(15)	Up to the Completion Date, Whole Win and the New Company and Startone and Party B have never been engaged or participated in any activity against any state or local laws and
regulations that may or shall incur Startone possible cancellation of business license or other legal or administrative penalty substantially affecting Startone’s business operation; 

  

	 	(16)	Up to the Completion Date, there is no unsettled credit or indebtedness between Party B and Startone or between Party C and Startone, and Party A or its appointed natural persons
would not inherit any indebtedness of Startone on Party B’s part due to the share transfer hereunder; 

  

	 	(17)	Up to the Completion Date, Whole Win and the New Company and Startone all have made full payment for due and payable tax, tax penalty, penalty interest and charges. No indebtedness,
loan or outstanding tax has been created out of the due course of business operation; 

  

	 	(18)	Up to the Completion Date, Startone undertakes no liability for payment the outstanding pension, unemployment insurance, welfare or any other fees and reserves in relation to
employees; 

  

	 	(19)	Up to the Completion Date, Startone has never violate any material agreement where it acts as one party and may not be under obligations due to any representations, warranties,
compensation or other liabilities; 

  

	 	(20)	Startone has never executed any contract that has or may have negative influence on its business, profit or assets where it acts as one party other than those contracts disclosed to
Party A; and 

  

	11.3	Party B(1) and Party B(2) are the sole shareholders of Startone upon execution date, and own respectively 70% and 30% of Startone’s shares. Party B(1) is the only and actual
shareholder of Party C and legitimately owns the entire interest of Party C. Party C consistently and irrevocably represents, warrants and undertakes to Party A that: 

  

	 	(1)	Party C is a limited liability company incorporated and validly existing under the laws of BVI, has obtained the corresponding approvals from the relevant authorities in terms of
the cooperation matters hereunder, has authorized its representative to execute the Agreement and has made Party C be bound by this Agreement. 

	 	(2)	Party B warrants that any document or information regarding this Agreement provided by Party B for the execution and performance of this Agreement is in all aspects true, complete
and accurate and is not fraud, omissive or misleading. 

  

	 	(3)	All shares of Whole Win are free of any pledge, mortgage, warranty or other third party interest set by any party unless disclosed to Party A in writing before the execution date
hereof (such disclosure letter shall be confirmed and signed by Party A and Party B). 

  

	 	(4)	Party C will use its best efforts to satisfy the requirements of Party A and its directly or indirectly controlled companies (if applicable) to request Party C and/or Party B to
provide and/or issue any document pursuant to the rules of HKSE, Hong Kong Securities and Futures Commission, Hong Kong Corporate Registry, NASDAQ and other applicable laws and/or rules. 

  

	 	(5)	Before the Completion, there is no unsettled credit or indebtedness between Party C and Startone. 

  

	11.4	Each of the representations, warranties and undertakings made by Party A, Party B and Party C respectively in the foregoing Article 11.1, 11.2 and 11.3 shall be deemed repeatedly
made on the basis of the then facts and situations of all the time from the execution date hereof to the date on which the Completion is conducted. 

  

	12.	Due Diligence 

  

	12.1	Party B and Party C agree that, after the execution of this Agreement, they shall, as required by Party A and/or its appointed persons, provide documents in a true, accurate and
complete manner evidencing the business operation, assets, financial and legal status, profit performance and commercial prospects of Party B, Party C, Whole Win, the New Company, Startone and other institutions relating to this transaction, and
shall assist Party A and/or its appointed persons in the due diligence. 

  

	13.	Tax and Compensation Liabilities 

  

	13.1	 Prior to the completion of the transaction hereunder, any possible and/or undisclosed legal and tax liability in relation to Whole Win, Startone and the New Company
shall be borne by Party B. Party B shall be responsible for any tax incurred from the cooperation 

 
matters hereunder or the establishment of the New Company hereunder. If Party A is incurred any loss due to any act or omission by Party B, Party C, Whole
Win, Startone and the New Company, Party A shall be entitled to directly deduct such from the outstanding transaction consideration and in that event, Party A shall not be responsible for the corresponding payment under Article 4 hereof and by no
means to be blamed for breach of this Agreement. In the event that the Parties by themselves fail to reach an agreement on the amount of Party A’s loss, both Party A and Party B agree to appoint an independent auditor to make an estimation on
Party A’s loss with the estimated amount to be final and binding upon Party A and Party B. 
  

	14.	Confidentiality 

  

	14.1	The Parties acknowledge and confirm that any information exchanged regarding the major terms hereof, whether oral or written, is confidential (including but not limited to this
major article and this transaction). The Parties shall keep all such information strictly confidential and shall not disclose such to any third party without the prior content of the other Party other than the following information:

  

	 	(1)	information required to disclose according to the applicable laws or the Listing Rules of the Growth Enterprise Market; and 

  

	 	(2)	information required to disclose by any Party in terms of the transaction under this major article to its legal or financial advisor who is bound by the confidentiality obligations
herein. 

  

	14.2	The Parties confirm and ensure that, prior to obtaining the content of all the other Parties, they shall not disclose any detail of the transaction hereunder in any form. Party B or
Party C shall, upon the approval of Party A, disclose the relevant information in accordance with the instructions given by Party A. 

  

	14.3	The Parties agree that the foregoing confidentiality obligations also apply to their appointed professional institutions and personnel for the execution of this Agreement.

  

	15.	Exclusiveness 

  

	15.1	Party B and Party C agree, on or before November 30, 2004, not to directly or indirectly discuss, consult, negotiate or execute any agreement or letter of intent (whether such
agreement or letter of intent has binding force on themselves) with any third party in terms of any covenants hereunder (including but not limited to share transfer and transfer of Startone’s shares). 

	16.	Force Majeure 

  

	16.1	In case of unforeseeable, unavoidable and irrecoverable force majeure, the Party affected by the force majeure shall, within fourteen (14) days after the occurrence of such force
majeure, give notice to the other Party, and provide the relevant details and an evidence issued and notarized by the relevant authority within thirty (30) days after such occurrence. The Parties shall settle the force majeure through negotiation.
If such force majeure lasts or remains effective for more than three (3) months and prevents any Party from performing this Agreement, any Party shall have the right to claim for the non-performance of their respective obligations hereunder.

  
 In this Agreement, Force Majeure shall mean any
of the following events which is uncontrollable, unforeseeable and unavoidable and which causes any Party to be unable to perform all or part of its obligations under this Agreement: earthquake, collapse, falling, flood, typhoon and other acts of
nature, and fire, explosion, accident, war, riot, social ferment or turbulence, destruction or all other similar or different incidents. 
  

	17.	Breach of Agreement 

  

	17.1	Any Party hereto violating or refusing to perform its representations, warranties and obligations hereunder constitutes a breach of agreement. Any Party shall compensate the other
Party or keep it harmless of any direct loss incurred from its breach of agreement. 

  

	18.	Applicable Law 

  

	18.1	The formation, validity, termination, interpretation and execution of this Agreement shall be governed by the laws of Hong Kong. 

  

	19.	Dispute Resolution 

  

	19.1	All disputes arising out of or in relation to the performance of this Agreement should be resolved by the Parties through friendly negotiation. Should the Parties fail to resolve
the dispute within sixty (60) days after one Party notifies the other Party the existence of such dispute (and demand for launching the negotiation), the dispute shall be submitted to the jurisdiction of Hong Kong court. 

	20.	Entire Agreement and Amendment 

  

	20.1	Entire Agreement 

  

	 	(1)	This Agreement constitutes the entire and sole agreement among the Parties in connection with the subject matter under this Agreement and supersedes all agreements, contracts,
understandings and communications relating hereto, whether oral or written, among the Parties. 

  

	 	(2)	All the agreements, files, authorizations, reports, checklists, permits, undertakings and waiver formed, made, executed and added pursuant to this Agreement constitute the
additional provisions to this Agreement and form an integral part free of violation which is in the same legal effect as this Agreement. 

  

	20.2	Amendment 

  

	 	(1)	Any amendment, complement, modification of this Agreement shall be achieved by the Parties in writing by negotiation and be effective upon signing by duly authorized representatives
of the Parties under this Agreement. 

  

	 	(2)	Any written amendment or modification of this Agreement by the Parties constitutes the integral part of this Agreement. 

  

	21.	Notice and Delivery 

  

	21.1	Any notice or other communication in connection with this Agreement shall be made in writing and sent to the Parties at the following addresses or other address notified in writing:

  

					
	 Party A:
	  	 TOM ONLINE MEDIA GROUP LIMITED

			
	 	  	 Address:
	 	 8F, West 3, Orient Square Building,

	 	  	 	 	 No.1 Chang’an Street East, Beijing, China

	 	  	 Fax:
	 	 (8610) 8518-1176

	 	  	 Attn.:
	 	 Yan Yingping

		
	 Party B:
	  	 Party B(1) Party B(2)

			
	 	  	 Address:
	 	 B6—1905, Sun Garden,
 Haidian District, Beijing

	 	  	 Fax:
	 	 (8610) 8398-8303

	 	  	 Attn.:
	 	 Zhang Dong

					
	 Party C:
	  	 Key Result Holdings Limited

			
	 	  	 Address:
	 	 B6—1905, Sun Garden,
 Haidian District, Beijing

	 	  	 Fax:
	 	 (8610) 8398-8303

	 	  	 Attn.:
	 	 Zhang Dong

  

	22.	Effectiveness 

  

	22.1	This Agreement shall become effective upon execution by duly authorized representatives of the Parties. 

 IN WITNESS WHEREOF, this Agreement is executed by the Parties hereto. 
  
 Party A: TOM ONLINE MEDIA GROUP LIMITED 
  
 Representative: Wang Lei Lei 
  
 Signature: 
  
 Corporate Seal: 
  
 Party B(1): Zhang Dong 
  
 Signature: 

 
 Party B(2): Jia Shu Yun 
  
 Signature: 
  
 Party C: Key Result Holdings Limited 
  
 Representative: Zhang Dong 
  
 Signature: 
  
 Corporate Seal: 

 SCHEDULE A 
  

PARTICULARS OF PARTY B(1) AND PARTY B(2) 
  

			
	 Party B(1)
	  	 
		
	 Name:
	  	 Zhang Dong

		
	 Nationality:
	  	 Chinese

		
	 PRC ID Number:
	  	 220105710206001

		
	 Address:
	  	 B6-1905, Sun Garden,
 Haidian District, Beijing

		
	 Party B(2)
	  	 
		
	 Name:
	  	 Jia Shu Yun

		
	 Nationality:
	  	 Chinese

		
	 PRC ID Number:
	  	 220105390103002

		
	 Address:
	  	 B6-1905, Sun Garden,
  
 Haidian District, Beijing

 SCHEDULE B 
  

RESTRUCTURE FRAMEWORK CHART 
  
  
 

 
  
  

 SCHEDULE C 
  

MANAGEMENT LIST 
  

			
	 OFFICER
	 	 POSITION

		
	 Zhang Dong
	 	 General Manager

		
	 Zhang Xin
	 	 Operation Director

		
	 Yang Bing
	 	 Market Director

		
	 Liu Song Tao
	 	 Technology Manager

		
	 Yang Qi Hua
	 	 Operation Manager

 SCHEDULE D 
  

RELEVANT CONTRACTS LIST 
  

			
	 1.
	  	Exclusive Technical and Consulting Services Agreement between the New Company and Startone
		
	 2.
	  	Business Operation Agreement among the New Company and Startone and its shareholders (the Natural Persons Appointed by Party A)
		
	 3.
	  	Exclusive Option Agreement between the shareholders of Startone (the Natural Persons Appointed by Party A) and Whole Win
		
	 4.
	  	Share Transfer Agreement between Zhang Dong and the Natural Persons Appointed by Party A
		
	 5.
	  	Share Pledge Agreement between the shareholders of Startone (the Natural Persons Appointed by Party A) and the New Company
		
	 6.
	  	Loan Agreement between Whole Win and the Natural Persons Appointed by Party A
		
	 7.
	  	Warranty and Indemnification Agreement between Party A and Party B
		
	 8.
	  	Power of Attorney between the shareholders of Startone (the Natural Persons Appointed by Party A) and the persons appointed by the New Company
		
	 9.
	  	Cooperation Agreement on WAP Service Provider between China Mobile Telecommunication Group Co., Ltd and Monternet as of October 14, 2003
		
	 10.
	  	Project Cooperation Contract with Beijing Liandongweiye Technology Development Co., Ltd as of August 18, 2004
		
	 11.
	  	Cooperation Agreement with China Birth Planning Publicity and Education Center as of November 14, 2003Employment Agreement between Susquehanna Bancshares, Inc. and William J. Reuter

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 AGREEMENT made as of this 25th day of March, 2005, by and between SUSQUEHANNA BANCSHARES, INC., a Pennsylvania corporation (the
“Company”), and WILLIAM J. REUTER, an adult individual whose principal residence is at 6 Apple Hill Drive, Lititz, Pennsylvania 17543 (the “Employee”), on the other side. 
  
 Background 
  
 The Company desires to induce the Employee to remain in its employment, and
the Employee hereby agrees to accept continuation of employment with the Company, on the terms and subject to the conditions hereinafter set forth. As additional consideration to induce the Employee to enter into this Agreement, the Company has
offered to enhance the benefits payable to Employee in connection with certain control transactions involving the Company. The Company and the Employee each agree that these benefits are all conditional on the Employee’s agreement to sign this
Agreement. This Agreement replaces and supersedes all previous Employment Agreements between the Employees and the Company or any Affiliate. 
  
 1. Position. The Company hereby agrees to continue the Employee’s employment and the Employee hereby agrees to continue employment, as
Chairman, President and Chief Executive Officer of the Company. 
  
 2. Duties. 
  
 2.1. The Employee agrees to assume
such duties and responsibilities as may be consistent with the position of Chairman, President and Chief Executive Officer of the Company and as may be assigned to the Employee by the Board of Directors or by the by-laws of the Company from time to
time. No change in the duties of the Employee shall in any way diminish the compensation payable to him or her pursuant to the provisions of paragraph 4 hereof. 

 2.2. The Employee agrees to devote his or her full time, skill, attention and energies and his or her
best efforts to the performance of his or her duties under this Agreement, consistent with practices and policies established from time to time by the Company. The Employee agrees, in addition to the covenants concerning Non-Competition contained in
Paragraph 15, that he or she will not engage in any other business activity (including, without limitation, participation by the Employee on any unaffiliated profit or non-profit board of directors) except: (i) upon the prior written notice to and
consent of the Company’s Board of Directors, or (ii) solely as an investor in real or personal property, the management of which shall not detract from the performance of his or her duties hereunder; provided, however, that the engagement by
the Employee in any such business activity shall at all times be in conformity with the Company’s Code of Conduct, as the same may be amended or supplemented from time to time. Notwithstanding anything herein to the contrary, the Employee shall
terminate any such activity upon reasonable request by the Company. 
  
 3. Period of Employment. 
  
 3.1. The period of
employment shall commence on the effective date of this Agreement and end on the third December 31 next following the date of this Agreement (as the same may be extended pursuant to this paragraph, the “Period of Employment”). If written
election not to renew by either party is not received by the other party by (a) November 1 of the year of the effective date of this Agreement, or (b) November 1 any subsequent year, if this Agreement has previously been extended pursuant to this
paragraph 3, then the Period of Employment will be automatically extended by one year. 
  
 3.2. Notwithstanding anything to the contrary set forth herein, the Employment Period will not extend beyond: 
  
 3.2.1. the last business day in the calendar year in which the Employee attains the age of 65 (the “Normal Retirement Date”), or 
  

 -2- 

 3.2.2. if a Change in Control has occurred prior to the Normal Retirement Date, the later of (a) the
Normal Retirement Date, or (b) the first anniversary of that Change in Control. 
  
 4. Compensation. For all services rendered by the Employee under this Agreement, the Company shall pay to the Employee compensation as provided below: 
  
 4.1. Base Salary. The Company shall pay the Employee a minimum annual
base salary at the rate of $541,190.00 per year. In connection with the annual review required by subparagraph 4.3 hereof, the Employee’s base salary shall be reviewed and in light of such review may be increased (but not decreased), taking
into account any change in the Employee’s responsibilities, performance of the Employee and other pertinent factors. Payment of any increase in the Employee’s base salary (if any) shall commence no later than July 1st of the year in which the increase is granted. 
  
 4.2. Bonus. The Company may, but shall not be required to, pay to the Employee annual bonus compensation in such
amount as may be determined by the appropriate Board of Directors or its designee within guidelines established by the Company. Such bonus shall not exceed the amount of the Employee’s base compensation. 
  
 4.3. Annual Review. The determination of compensation payable by the
Company hereunder shall be made by the Compensation Committee of the Company or its nominee, which shall perform an annual review of this Agreement, the Employee’s performance with the Company, and compensation payable hereunder. The results of
such review, including recommendation as to salary adjustment and bonus, shall be reported to the Company and shall be memorialized in the minutes of the meetings of the Company’s Board of Directors or held in a confidential file by the
Company’s Human Resources Department. 
  

 -3- 

 5. Employee Expenses. Subject to such general employee expense account policies as the Company may
from time to time adopt, the Company will pay or reimburse the Employee upon presentation of vouchers or invoices for reasonable expenses incurred by the Employee in the performance of his or her duties in carrying out the terms and provisions of
this Agreement, including, without limitation, expenses for such items as entertainment, travel, meals, hotel and similar items. In the event that any reimbursed expenses are disallowed by the Internal Revenue Service as deductions to the Company,
as the case may be, the Employee shall retain such reimbursed expense amounts which the Employee shall treat and report as additional compensation and which the Company shall treat as deductible salary expense. 
  
 The Company also shall provide the Employee during his or her employment
under this Agreement with the full time use of a car selected by the Employee and comparable to the car available at present. Such car shall be used by the Employee in accordance with any and all general car policy(ies) as the Company may from time
to time adopt. Such car shall be selected, maintained and replaced in accordance with the Company’s general policy on cars for employees having need of a car for such use. 
  
 6. Vacations. The Employee will be entitled to paid vacation annually as specified under the Company’s Vacation
Policy, to be taken at times reasonably convenient to the Company. 
  
 7. Benefits. 
  
 7.1. The Employee shall be
entitled to group term life insurance insuring the Employee’s life during the term of employment, disability insurance coverage, and accidental 

  

 -4- 

 
death and dismemberment benefits, including death benefit, in such amounts and in such coverage as shall be consistent with the insurance coverage programs
available to other salaried employees of the Company, as the same may change from time to time. The Employee shall designate the beneficiary of such policy and benefits. 
  
 7.2. The Employee shall be entitled to major medical and health insurance coverage for the Employee and his or her immediate
family on such terms, in such amounts and in such coverage as shall be consistent with the insurance coverage programs available to other salaried employees of the Company generally, as the same may change from time to time. 
  
 7.3. To the extent such benefits are not specifically described or duplicated
hereinabove in this Paragraph 7, the Employee shall also be entitled to participate in any and all thrift, profit sharing, pension and similar benefit plans (not including severance, change in control or other similar arrangements), now or hereafter
maintained by the Company and offered by the Company to its salaried, management employees generally, as the same may change from time to time. 
  
 8. Confidential Information. During the term of employment, and at any time thereafter, the Employee shall not, without the consent of a senior
officer of the Company, disclose to any person, firm or corporation (except, during the term of his or her employment, to the extent necessary to perform his or her duties hereunder) any customer lists, trade secrets, reports, correspondence,
mailing lists, manuals, price lists, employee lists, prospective employee lists, letters, records or any other confidential information relating to the business of the Company or any Affiliate of the Company and shall not, without the consent of a
senior officer of the Company, deliver any oral address or speech or publish, or knowingly permit to be published, any written matter in any way relating to confidential information regarding the business of the Company or any Affiliate of the
Company. 
  

 -5- 

 9. Property Rights. The Employee agrees that all literary work, copyrightable material or other
proprietary information or materials developed by the Employee during the term of this Agreement and relating to, or capable of being used or adopted for use in, the business of the Company shall inure to and be the property of the Company and must
be promptly disclosed to the Company. Both during employment by the Company and thereafter, the Employee shall, at the expense of the Company, execute such documents and do such things as the Company reasonably may request to enable the Company or
their nominee (i) to apply for copyright or equivalent protection in the United States, Canada and elsewhere for any literary work hereinabove referred in this paragraph, or (ii) to be vested with any such copyright protection in the United States,
Canada and elsewhere. 
  
 10. Termination. The Company may
terminate the Employee’s employment without Cause (as defined below) or as a result of a Disability (as defined below) at any time, with 90 days’ advance written notice (or pay in lieu thereof). The Company may terminate the
Employee’s employment for Cause at any time without notice. The Employee may terminate his employment at any time for any reason, with 90 days’ advance written notice (or such shorter notice as the Company will then accept). Upon
termination, the Employee will be entitled only to such compensation and benefits as described in this Paragraph 10. 
  
 10.1. Termination without Cause or Resignation due to an Adverse Change. If the Employee’s employment ceases due to a termination by the
Company without Cause or a resignation by the Employee due to an Adverse Change (as defined below), the Employee will be entitled to: 
  
 10.1.1. payment of all accrued and unpaid base salary through the date of such termination; 
  

 -6- 

 10.1.2. payment for all accrued but unused vacation days; 
  
 10.1.3. payment of any bonus payable with respect to a period ending prior to
such termination; 
  
 10.1.4. bi-weekly compensation continuation
payments for a period equal to the Non-Competition Period, with each payment equal to 1/26 of the Average Annual Compensation (provided, however, that it is understood that Employee shall not participate in any benefit plans covering employees,
except as specifically stated in this Paragraph 10); 
  
 10.1.5.
the benefit that the Employee would have accrued under all defined benefit pension plans had the Employee remained in the employ of the Company for the remainder of the Non-Competition Period, which benefits will be paid concurrently with the
benefits which would otherwise have been provided under such plans; and 
  
 10.1.6. all other employee benefits to which the Employee would have been entitled under paragraph 7 hereof if he had remained in the employ of the Company for the remainder of the Non-Competition Period. 
  
 Except as otherwise provided in this subparagraph 10.1, all compensation and
benefits will cease at the time of such termination and the Company will have no further liability or obligation by reason of such termination. The separation benefits described in this subparagraph 10.1 will be paid (or, in the case of the benefits
described in subparagraphs 10.1.4, 10.1.5 and 10.1.6, will begin to be paid or provided) as soon as the release described below in subparagraph 10.6 becomes irrevocable. 
  

 -7- 

 Notwithstanding the foregoing, if the terms of the Company’s group insurance arrangements do not
allow continuation of Employee’s group health or group term life insurance coverage for any part of the period(s) described in subparagraphs 10.1.5 and 10.1.6, Employee will instead receive an amount in cash equal to 150% of the Company’s
actual premium cost of providing comparable coverage to similarly situated active employees for the applicable period. Such amount may be paid in installments at the same intervals as group insurance premiums are generally paid by the Company and
such payment(s) will constitute a complete satisfaction of Employee’s entitlements under subparagraphs 10.1.5 and 10.1.6. 
  
 10.2. Other Terminations. If the Employee’s employment ceases for any reason other than as described in subparagraph 10.1, above (including,
but not limited, to (a) termination for Cause, (b) as a result of the Employee’s death or Disability (as defined below), (c) resignation by the Employee in the absence of an Adverse Change or (d) a retirement described in subparagraph 3.2),
then the Employee will receive payment for his accrued and unpaid base salary through the date of such cessation. All compensation and benefits will cease at the time of such termination and, except as otherwise provided herein, the Company will
have no further liability or obligation by reason of such termination. 
  
 10.3. Non-Disparagement. Upon termination of employment hereunder, the Employee shall not malign, criticize or otherwise disparage the Company, the Affiliates or their respective officers, employees or directors. 
  
 10.4. Claims. Any claims for benefits under paragraph 10 of the
Agreement shall be governed by the claims procedures in the Susquehanna Bancshares, Inc. Key Employee Severance Pay Plan, as amended from time to time. However, the provisions of Sections 10.1 and 11 of this Agreement shall govern in lieu of the
severance provisions of such Plan. Except 

  

 -8- 

 
as specifically provided in this Agreement, the payments and benefits provided under this Paragraph 10 are in lieu of, not in addition to, those provided by
the Company and its Affiliates under any other severance plan or arrangement. 
  
 10.5. Release. Notwithstanding any other provision of this Agreement, any severance or termination payments or benefits herein described are conditioned on the Employee’s execution and delivery to the
Company of a general release and non-disparagement agreement in a form prescribed by the Company and in a manner consistent with the requirements of the Older Workers Benefit Protection Act and any applicable state law. 
  
 10.6. Other Rights. Nothing is this Agreement is intended to limit the
Employee’s right to (a) payment or reimbursement for welfare benefit claims incurred prior to the cessation of his or her employment under any group insurance plan, policy or arrangement of the Company in accordance with the terms of such plan,
policy or arrangement, (b) except as otherwise provided in subparagraph 10.1.5, elect COBRA Benefits in accordance with applicable law, or (c) receive a distribution of vested accrued benefits from any employee pension benefit plan in accordance
with the terms of that plan. 
  
 11. Change in Control.

  
 11.1. Effect of a Change in Control. 
  
 11.1.1. Effect on LTI/STI Rights. With respect to any long-term,
short-term or any similar incentive program cycle in effect at the time of a Change in Control: 
  
 (a) Employee will become fully and immediately vested in his or her incentive awards upon the occurrence of the Change in Control; and 

 
 (b) such incentive awards will be payable at target levels (at the same
time and in the same form that such awards would otherwise be payable in the absence of this Agreement), without regard to whether Employee remains employed by the Company and without regard to the performance of Employee during those incentive
program cycles. 
  

 -9- 

 11.1.2. Effect on Pension Rights. In the event of a termination of employment providing for
payment of benefits under section 10.1, the Employee will accrue an additional, fully vested benefit under the Company’s non-qualified pension plan equal to the difference between: 
  
 (a) the benefit that the Employee would have accrued under all defined benefit pension plans of the Company or its
Affiliates in which the Employee participated immediately prior to the Change in Control, assuming: 
  
 (i) the Employee remained continuously employed by the Company until the fifth anniversary of the Change in Control, 
  
 (ii) the Employee’s compensation for purposes of calculating benefits
under such pension plans increased at a rate of four percent per year for the period of imputed service described above in subparagraph 11.1.3(a)(i), and 
  
 (iii) the terms of all such pension plans remained identical to those in effect immediately prior to the Change in Control; and 
  
 (b) the actual benefit due to the Employee under all defined benefit pension
plans of the Company and its Affiliates. 
  
 11.1.3. Effect on
Restrictive Covenants. Upon the occurrence of a Change in Control, the two year period referenced in Paragraph 15.1 will be revised automatically to equal the greater of two years or the period extending from the date of the termination of
active employment to the fifth anniversary of the Change in Control. 
  

 -10- 

 11.1.4. Transition Services. For two years following cessation of employment after any Change in
Control, the Employee agrees to remain available to provide the Company with transition assistance on matters with which the Employee was involved during his or her employment. The Employee will render such assistance in a timely manner on
reasonable notice from the Company. The Employee will not be entitled to any separate compensation for the services described in this paragraph (other than reimbursement for reasonable out-of-pocket expenses actually incurred). The Company agrees to
provide reasonable advance notice of the need for the Employee’s assistance and will exercise reasonable efforts to schedule and limit such matters so as to avoid interfering with the Employee’s personal and other professional obligations.

  
 11.2. Parachute Payments. 
  
 (a) Anything in this Agreement to the contrary notwithstanding, in the event
that it shall be determined that any payment or distribution by the Company or its Affiliates to or for the benefit of the Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, would
constitute an “excess parachute payment” within the meaning of §280G of the Internal Revenue Code of 1986, as amended (the “Code”) (each such payment, a “Parachute Payment”) and would result in the imposition on
the Employee of an excise tax under Code §4999, then, in addition to any other benefits to which the Employee is entitled under this Agreement or otherwise, the Employee shall be paid an amount in cash equal to the sum of the excise taxes
payable by the Employee by reason of receiving Parachute Payments plus the amount necessary to place the Employee in the same after-tax position (taking into account any and all applicable federal, state and local excise, income or other taxes at
the highest possible applicable rates on such Parachute Payments (including, 

  

 -11- 

 
without limitation, any payments under this subparagraph 11.2(a)) as if no excise taxes had been imposed with respect to Parachute Payments (the
“Parachute Gross-up”). Any Parachute Gross-up otherwise required by this subparagraph 11.2(a) shall not be made later than the time of the corresponding payment or benefit hereunder giving rise to the underlying Code §4999 excise tax
(to the extent such determination has been made prior to such time), even if the payment of the excise tax is not required under the Code until a later time. Any Parachute Gross-up otherwise required under this subparagraph 11.2(a) shall be made
whether or not there is a Change in Control, whether or not payments or benefits are payable under this Agreement, whether or not the payments or benefits giving rise to the Parachute Gross-up are made in respect of a Change in Control and whether
or not the Employee’s employment with the Employer shall have been terminated. 
  
 (b) All determinations to be made under this subparagraph 11.2 shall be made by an independent public accounting firm chosen by the Company (the “Accounting Firm”). 
  
 (c) In the event the Internal Revenue Service notifies the Employee of an
inquiry with respect to the applicability of Code §280G or Code §4999 to any payment by the Company or its Affiliates, or assessment of tax under Code §4999 with respect to any payment by the Company or its Affiliates, the Employee
shall provide notice to the Company of such inquiry or assessment within 10 days, and shall take no action with respect to such inquiry or assessment until the Company has responded thereto (provided such response is timely with respect to the
inquiry or assessment). The Company shall have the right to appoint an attorney or accountant to represent the Employee with respect to such inquiry or assessment, and the Employee shall fully cooperate with such representative as a condition of
receiving a Parachute Gross-up with respect to such inquiry or assessment. 
  

 -12- 

 (d) All of the fees and expenses of the Accounting Firm in performing the determinations referred to in
subparagraphs (a) and (b) above, or of the representative appointed pursuant to subparagraph (c) above, shall be borne solely by the Company. 
  
 (e) Notwithstanding the foregoing, if the imposition of a Code §4999 excise tax could be avoided by a reduction of the payments due to the Employee
(determined before application of subparagraph 11.2(a)) by an amount of 10% or less, then the total of all such payments will be reduced to an amount one dollar ($1.00) below the amount that would cause a Code §4999 excise tax to be imposed,
and subparagraph 11.2(a) will not apply. 
  
 11.3.
Enforcement. Following any Change in Control, the Company will pay all legal fees and costs incurred by the Employee to enforce his rights under this Agreement if (a) he or she is required to initiate a proceeding to enforce such rights and
(b) he or she is awarded any relief in that proceeding. 
  
 12.
Records. Upon the termination of employment hereunder, the Employee shall deliver to the Company all correspondence, reports, customer lists, office keys, manuals, advertising brochures, sample contracts, price lists, employee lists,
prospective employee lists, mailing lists, letters, records and any and all other documents pertaining to or containing information relative to the business of the Company, and the Employee shall not remove any of such records either during the
course of employment or upon the termination thereof. 
  
 The
Employee understands that in the event of a violation of the provisions of this paragraph 12, the Company shall have the right to seek injunctive relief, in addition to any other existing rights provided herein or by operation of law, without the
requirement of posting bond. The remedies provided in this paragraph 12 shall be in addition to any legal or equitable remedies existing between the Employee and the Company, and shall not be construed as a limitation upon, or as alternative or in
lieu of, such remedies. 
  

 -13- 

 13. Prohibited Assignment. The Employee shall have no right to exchange, convert, encumber or
dispose of the rights to receive the benefits or payments under this Agreement, which payments, benefits and rights thereto are expressly declared to be non-assignable and non-transferable. 
  
 14. Indemnification. To the extent permitted by law, the Company shall
indemnify the Employee and hold him or her harmless from all liability and claims, whether meritorious or not, including the cost of defense thereof (including reasonable attorneys’ fees) which have arisen or accrued or which hereafter may
arise or accrue and are based upon any act or omission which the Employee has taken or committed or hereafter may take or commit on behalf of or in connection with the Company in his or her official capacity, so long as the following conditions are
met with respect to such claim or liability: (a) if such action was taken in the exercise of reasonable business judgment and was taken in an area within the scope of responsibility of the Employee, or (b) if not within the scope of the
Employee’s responsibility, (i) at the time of such act or omission the Board of Directors of the Company had knowledge of the facts or circumstances pursuant to which such act was taken or such omission occurred and (ii) no written objection to
such act or omission was duly made by the Board. 
  
 Actions taken
by the Employee which are covered by this Agreement specifically include (by way of illustration), but are not limited to, (a) the payment of any salary, bonus or other compensation to any officer, director, or employee, (b) the reimbursement or
payment of any expenses incurred by any such officer, director or employee, (c) the making or retention of any investments (including, without limitation, loans) by the Company, or (d) injury claims against the Company or the Employee based on
negligence or other alleged tortious actions and which arise in connection with the conduct of the Company’s business. 
  

 -14- 

 The Employee shall indemnify the Company and hold it harmless from all liability and claims, whether
meritorious or not, including the cost of the defense thereof (including reasonable attorneys’ fees) which have arisen or accrued or which hereafter may arise or accrue and are based upon acts taken without the consent or approval of the Board
of Directors of the Company and which represent the Employee’s deliberate malfeasance or gross negligence. 
  
 15. Non-Competition. 
  
 15.1. During the Employee’s Period of Employment and for two years thereafter: 
  
 15.1.1. the Employee will not directly for himself or herself or any third party, become engaged in any business or activity
which is directly in competition with any services or financial products sold by, or any business or activity engaged in by, the Company, including, without limitation, any business or activity engaged in by any federally or state chartered bank,
savings bank, savings and loan association, trust company and/or credit union, and/or any services or financial products sold by such entities, including, without limitation, the taking and accepting of deposits, the provision of trust services, the
making of loans and/or the extension of credit, brokering loans and/or leases and the provision of insurance and investment services, within a 25 mile radius of any office or facility of the Company or any of its Affiliates. This provision shall not
restrict the Employee from owning or investing in publicly traded securities of financial institutions, so long as his or her aggregate holdings in any financial institution do not exceed ten percent (10%) of the outstanding capital stock of such
institution. 
  

 -15- 

 15.1.2. the Employee will not solicit any person who was a customer of the Company during the period of
the Employee’s employment hereunder, or solicit potential customers who are or were identified through leads developed during the course of employment with the Company, or otherwise divert or attempt to divert any existing business of the
Company within any area of 100 miles of any office or facility of the Company or any of its Affiliates. 
  
 15.1.3. the Employee will not, directly for himself or any third party, solicit, induce, recruit or cause another person in the employment of the Company
or any of its Affiliates to terminate his or her employment for the purposes of joining, associating, or becoming employed with any business or activity which is in competition with any services or financial products sold, or any business or
activity engaged in, by Company. 
  
 15.2. The Employee
understands that in the event of a violation of any provision of this Agreement, the Company shall have the right to seek injunctive relief, in addition to any other existing rights provided in this Agreement or by operation of law, without the
requirement of posting bond. The Employee understands that the Company may suspend future payments of the compensation continuation payments and benefits provided in Section 10.1, may forfeit the additional pension benefit provided under Section
11.1.2, and may seek, as a remedy, a return of any prior compensation continuation payments made under Section 10.1.4. The remedies provided in this paragraph shall be in addition to any legal or equitable remedies existing at law or provided for in
any other agreement between the Employee and the Company or any of its Affiliates, and shall not be construed as a limitation upon, or as an alternative or in lieu of, any such remedies. If any provisions of this paragraph shall be determined by a
court of competent jurisdiction to be unenforceable in part by reason of it being too great a period of time or covering too great a geographical area, it shall be in full force and effect as to that period of time or geographical area determined to
be reasonable by the court. 
  

 -16- 

 15.3. In the event of a Change in Control, the Employee acknowledges that the provisions of Paragraph 15
hereof shall extend to any offices or facilities of any business that becomes an affiliate of or successor to the Company on account of such Change in Control. 
  

16. Survival. Notwithstanding anything to the contrary in this Agreement, the parties agree that the Employee’s obligations under
Paragraphs 8, 9, 10.3, 12 and 15 of this Agreement will continue despite the expiration of the term of this Agreement or its termination. 
  
 17. Preemptive Considerations. Notwithstanding anything to the contrary set forth herein: 
  
 17.1. If the Employee is suspended and/or temporarily prohibited from
participating in the conduct of the Company’s affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(3) and (g)(1)) or any amendments or supplements thereto, the Company’s
obligations under this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Company may in its discretion (i) pay the Employee all or part of the
compensation withheld while this Agreement’s obligations were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were suspended. 
  
 17.2. If the Employee is removed and/or permanently prohibited from participating in the conduct of the Company’s or
any Affiliate’s affairs by an order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818 (e)(4) or (g)(1)) or any amendments or supplements thereto, or equivalent provisions relating to a regulator with
supervisory authority over the Company or an Affiliate, all obligations of the Company or the Affiliate under the contract shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected. 
  

 -17- 

 17.3. If the Company or any Affiliate is in default (as defined in Section 3(x)(1) of the Federal Deposit
Insurance Act or equivalent provisions relating to a regulator with supervisory authority over the Company or an Affiliate), all obligations under this Agreement shall terminate as of the date of default, but this subparagraph 17.3 shall not affect
any vested rights of the parties. 
  
 18. Definitions. For
purposes of this Agreement: 
  
 18.1. The term “Adverse
Change” shall include and be limited to (A) a significant change in the nature or scope of the Employee’s duties as set forth in the first sentence of Paragraph 2 hereof such that the Employee has been reduced to a position of materially
lesser authority, status or responsibility (provided, however, for purposes of this subparagraph, in circumstances not involving a Change in Control, so long as the Employee remains a senior officer (which shall mean and include any officer position
with the Company above the position of vice president), an Adverse Change shall not be deemed to have occurred), or the time required to be spent by the Employee 60 miles or more beyond the Company’s geographic market area shall be increased
without the Employee’s consent by more than twenty percent (20%), as compared to the average of the two (2) preceding years, or (B) a reduction in the Employee’s base compensation, (C) any other material and willful breach by the Company
of any other provision of this Agreement, or (D) delivery by the Company of notice of its intention not to renew this Agreement. 
  
 However, none of the foregoing events or conditions will constitute an Adverse Change unless: (x) the Employee provides the Company with written objection
to the event or condition 

  

 -18- 

 
within 60 days following the occurrence thereof, (y) the Company does not reverse or otherwise cure the event or condition within 30 days of receiving that
written objection, and (z) the Employee resigns his employment within 60 days following the expiration of that cure period. 
  
 18.2. The term “Affiliate” shall mean with respect to the Company, persons or entities controlling, controlled by or under common control with
the Company. 
  
 18.3. The term “Average Annual
Compensation” shall mean, as of any date, the arithmetic average of the base salary and annual bonuses received by the Employee with respect to the three most recently completed calendar years. 
  
 18.4. The term “Board” shall mean the board of directors of the
Company. 
  
 18.5. The term “Cause” shall mean any of
the following: (a) the Employee’s personal dishonesty; (b) the Employee’s incompetence; (c) the Employee’s willful misconduct; (d) the Employee’s breach of fiduciary duty involving personal profit; (e) the Employee’s
intentional failure to perform stated duties; (f) the Employee’s willful violation of any law, rule or regulation (other than traffic violations or similar offenses); (g) the issuance of a final cease-and-desist order by a state or federal
agency having jurisdiction over the Company or any entity which controls the Company to the extent such cease-and-desist order requires the termination of the Employee; or (h) a material breach by the Employee of any provision of this Agreement.

  
 18.6. The term “Change in Control” shall mean the
first to occur, after the date hereof, of any of the following: 
  
 (a) if any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act), directly or indirectly, of securities of the Company (not including in the securities
beneficially owned by such Person any securities acquired directly from the Company or its subsidiaries) representing 25% or more of either the then outstanding shares of stock of the Company or the combined voting power of the Company’s then
outstanding securities; 
  

 -19- 

 (b) if during any period of 24 consecutive months during the existence of this Agreement
commencing on or after the date hereof, the individuals who, at the beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason other than death to constitute at least a majority thereof; provided that a
director who was not a director at the beginning of such 24-month period shall be deemed to have satisfied such 24-month requirement (and be an Incumbent Director) if such director was elected by, or on the recommendation of or with the approval of,
at least two-thirds of the directors who then qualified as Incumbent Directors either actually (because they were directors at the beginning of such 24-month period) or by prior operation of this clause (b); 
  
 (c) the consummation of a merger or consolidation of the
Company with any other corporation other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 60% of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding
immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the beneficial owner, as defined in clause (a),
directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the 

  

 -20- 

 
Company or its subsidiaries) representing 40% or more of either the then outstanding shares of stock of the Company or the combined voting power of the
Company’s then outstanding securities; or 
  
 (d) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company, or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s
assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 60% of the combined voting power of the voting securities of which are owned by Persons in substantially the same
proportion as their ownership of the Company immediately prior to such sale. 
  
 Upon the occurrence of a Change in Control, no subsequent event or condition shall constitute a Change in Control for purposes of this Agreement, with the result that there can be no more than one Change in Control hereunder. 
  
 18.7. The term “Company” shall mean the Company as hereinbefore
defined or any entity succeeding to substantially all of the assets and business of the Company. 
  
 18.8. The term “COBRA Benefits” shall refer to continued group health insurance benefits under sections 601-607 of the federal Employee
Retirement Income Security Act, as amended, (29 U.S.C. part 6) Act and regulations promulgated thereunder. 
  
 18.9. The term “Disability” means a condition entitling the Employee to benefits under the Company’s long term disability plan, policy or
arrangement; provided, however, that if no such plan, policy or arrangement is then maintained by the Company and applicable to the Employee, “Disability” will mean the Employee’s inability to perform his duties under this
Agreement due to a mental or physical condition that can be expected to result 

  

 -21- 

 
in death or that can be expected to last (or has already lasted) for a continuous period of 180 days or more. Termination as a result of a Disability will
not be construed as a termination “without Cause.” 
  
 18.10. The term “Non-Competition Period” shall mean, with respect to a specified cessation of employment, the two (or, in the case of a Change in Control, up to five) year period specified in Section 15.1. 
  
 18.11. The term “Period of Employment” shall have the meaning
described in Paragraph 3. 
  
 18.12. The term “Person”
shall have the meaning ascribed thereto by Section 3(a)(9) of the Securities Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof (except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee
or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company, or (v) such Employee or any “group” (as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act) which includes the Employee). 
  
 19.
Miscellaneous. 
  
 19.1. Assignment. This Agreement
(including, without limitation, paragraph 14 hereof relating to non-competition) shall be binding upon the parties hereto, the heirs and legal representatives of the Employee and the successors and assigns of the Company. 
  
 19.2. Notices. Any notice required, permitted or intended to be given
under this Agreement shall be in writing and shall be deemed to have been given only if 

  

 -22- 

 
delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid to the appropriate address shown below, or such
revised address as is delivered to the other party by the same means. 
  

	 	(a)	Notices to the Company shall be sent to: 

  
 Susquehanna Bancshares 
 Attn. Director of
Human Resources 
 26 North Cedar Street 
 P.O. Box 1000 
 Lititz, PA 17543-7000 
  

	 	(b)	Notices to the Employee shall be sent to: 

  
 William J. Reuter 
 6 Apple Hill Drive

 Lititz, Pennsylvania 17543 
  
 19.3. Entire Agreement. This Agreement constitutes the entire agreement between the parties in connection with the subject matter hereof,
supersedes any and all prior agreements or understandings between the parties and may only be changed by agreement in writing between the parties. 
  
 19.4. Construction. This Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania, without
application of the principles of conflicts of laws. 
  
 19.5.
Paragraph Headings. The paragraph headings herein have been inserted for convenience of reference only and shall in no way modify or restrict any of the terms or provisions hereof. 
  

 -23- 

 IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this Agreement the day
and year first above written. 
  

							
	 	 	SUSQUEHANNA BANCSHARES, INC.
				
	Attest:	 	 /s/ James H. Foster

	 	By:	 	 /s/ Edward Balderston, Jr.

	 	 	Assistant Secretary	 	 	 	 Executive Vice President &
 Chief Administrative
Officer

		
	 	 	EMPLOYEE
	Witness:	 	 
		
	 /s/ Stephanie Carbonetta

	 	 /s/ William J. Reuter                                 
               (Seal)

  

 -24-

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