Document:

Unassociated Document

    Exhibit
      10.2

    
       

      MAKE
        GOOD ESCROW AGREEMENT 

       

       

      This
        Make
        Good Escrow Agreement (the "Make Good Agreement"), dated effective as of
        May 14,
        2007, is entered into by and among Intra-Asia Entertainment Corporation,
        a
        Nevada corporation (the "Company"), the Investors (as defined below), Antaeus
        Capital, Inc. (“Antaeus”), and Karmen Investment Holdings Ltd (“Karmen”). and
        Leguna Verde Investments Ltd. (“Leguna” together with Karmen, each a “Make Good
        Pledgor” and collectively, the "Make Good Pledgors") and Securities Transfer
        Corporation, as escrow agent ("Escrow Agent"). 

       

      WHEREAS,
        each of the investors in the private offering of securities of the Company
        (the
        "Investors") has entered into a Securities Purchase Agreement, dated May
        14,
        2007 (the "SPA"), evidencing their participation in the Company's private
        offering (the "Offering")
        of
        securities. As an inducement to the Investors to participate in the Offering
        and
        as set forth in the SPA, the Make Good Pledgors agreed to place certain shares
        of the Company’s common stock, par value $0.001 per share (the “Common Stock”)
        into escrow for the benefit of the Investors in the event the Company fails
        to
        satisfy certain financial thresholds. 

       

      WHEREAS,
        pursuant to the requirements of the SPA, the Company and the Make Good Pledgors
        have agreed to establish an escrow on the terms and conditions set forth
        in this
        Make Good Agreement; 

       

      WHEREAS,
        the Escrow Agent has agreed to act as escrow agent pursuant to the terms
        and
        conditions of this Make Good Agreement; and 

       

      WHEREAS,
        all capitalized terms used but not defined herein shall have the meanings
        assigned them in the SPA; 

       

      NOW,
        THEREFORE, in consideration of the mutual promises of the parties and the
        terms
        and conditions hereof, the parties hereby agree as follows: 

       

      1.
        Appointment of Escrow Agent.
        The Make
        Good Pledgors and the Company hereby appoint Escrow Agent to act in accordance
        with the terms and conditions set forth in this Make Good Agreement, and
        Escrow
        Agent hereby accepts such appointment and agrees to act in accordance with
        such
        terms and conditions. 

       

      2.
        Establishment of Escrow.
        Within
        three Trading Days following the Closing, the Make Good Pledgors shall deliver,
        or cause to be delivered, to the Escrow Agent certificates evidencing an
        aggregate of 29,166,667 shares
        of
        the Company’s Common Stock (the "Escrow Shares"), along with bank signature
        stamped stock powers executed in blank (or such other signed instrument of
        transfer acceptable to the Company’s Transfer Agent). As used in this Make Good
        Agreement, “Transfer Agent” means Interwest Stock Transfer, or such other entity
        hereafter retained by the Company as its stock transfer agent as specified
        in a
        writing from the Company to the Escrow Agent and Antaeus. The
        Company shall notify the Investors in writing that the Escrow Shares have
        been
        placed into escrow as required by this Make Good Agreement within two Trading
        Days following the deposit of such Escrow Shares into escrow in accordance
        with
        the terms of this Make Good Agreement.
        Each
        Make Good Pledgor hereby agrees that its obligation to transfer shares of
        Common
        Stock to Investors pursuant to Section 4.11 of the SPA and this Make Good
        Agreement shall continue to run to the benefit of any Investor who shall
        have
        transferred or sold all or any portion of its Securities, and that Investors
        shall have the right to retain, transfer or assign its rights to receive
        all or
        any such Escrow Shares to other Persons in conjunction with negotiated sales
        or
        transfers of any of its Securities. Each Make Good Pledgor hereby irrevocably
        agrees that other than in accordance with Section 4.11 of the SPA and this
        Make
        Good Agreement, such Make Good Pledgor will not offer, pledge, sell, contract
        to
        sell, sell any option or contract to purchase, loan, purchase any option
        or
        contract to sell, grant any option, right or warrant to purchase or otherwise
        transfer or dispose of, directly or indirectly, or announce the offering
        of any
        of the Escrow Shares (including any securities convertible into, or exchangeable
        for, or representing the rights to receive Escrow Shares). In furtherance
        thereof, the Company will (x) place an irrevocable stop order on all Escrow
        Shares covered by any registration statements, (y) notify the Transfer Agent
        in
        writing of the stop order and the restrictions on such Escrow Shares under
        this
        Make Good Agreement and direct the Transfer Agent not to process any attempts
        by
        either Make Good Pledgor to resell or transfer any Escrow Shares under such
        registration statements or otherwise in violation of Section 4.11 of the
        SPA and
        this Make Good Agreement including under Rule 144. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      3. Representations
        of the Make Good Pledgors and the Company.
        Each
        Make Good Pledgor and the Company hereby represent and warrant, severally
        and
        not jointly, as to itself only, to the Investors as follows: 

       

      (i)
        All
        of the Escrow Shares are validly issued, fully paid and nonassessable shares
        of
        the Company, and free and clear of all pledges, liens and encumbrances. Upon
        any
        transfer of Escrow Shares to Investors hereunder, Investors will receive
        full
        right, title and authority to such shares as holders of Common Stock of the
        Company.

       

      (ii) Performance
        of this Make Good Agreement and compliance with the provisions hereof will
        not
        violate any provision of any applicable law and will not conflict with or
        result
        in any breach of any of the terms, conditions or provisions of, or constitute
        a
        default under, or result in the creation or imposition of any lien, charge
        or
        encumbrance upon, any of the properties or assets of the Make Good Pledgors
        pursuant to the terms of any indenture, mortgage, deed of trust or other
        agreement or instrument binding upon any such Make Good Pledgor, other than
        such
        breaches, defaults or liens which would not have a material adverse effect
        taken
        as a whole. 

       

      4.
        Disbursement of Escrow Shares. 

       

      a. Each
        Make
        Good Pledgor
        agrees
        that in
        the
        event that the after tax net income reported in the Annual Report on Form
        10-KSB
        of the Company for the fiscal year ending December 31, 2007, as filed with
        the
        Commission (the “2007 Annual Report”) is less than $4,000,000 (the “2007
        Guaranteed ATNI”), the Make Good Pledgors will
        transfer to the Investors on a pro-rata basis (determined by dividing each
        Investor’s Investment Amount by the aggregate of all Investment Amounts
        delivered to the Company by the Investors hereunder) for no consideration
        other
        than their part of their respective Investment Amount at Closing, an aggregate
        of 14,583,333 shares of Common Stock (as
        equitably adjusted for any stock splits, stock combinations, stock dividends
        or
        similar transactions)
        (the
“2007 Make Good Shares”).

       

      
        
          
          

        

        
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      b. In
        the
        event that either (i) the earnings per share reported in the Annual Report
        on
        Form 10-KSB of the Company for the fiscal year ending December 31, 2008,
        as
        filed with the Commission (the “2008 Annual Report”) is less than $0.049 on a
        fully diluted basis (as equitably adjusted for any stock splits, stock
        combinations, stock dividends or similar transactions) (the “2008 Guaranteed
        EPS”) or (ii) the after tax net income reported in the 2008 Annual Report is
        less than $8,000,000
        (the
“2008 Guaranteed ATNI”),
        the
        Make Good Pledgors will transfer to the Investors on a pro rata basis
        (determined by dividing each Investor’s Investment Amount by the aggregate of
        all Investment Amounts delivered to the Company by the Investors hereunder)
        for
        no consideration other than their part of their respective Investment Amount
        at
        Closing, an aggregate of 14,583,333 shares of Common Stock (as
        equitably adjusted for any stock splits, stock combinations, stock dividends
        or
        similar transactions)
        (the
“2008 Make Good Shares”).

       

      c. In
        the
        event that the
        after
        tax net income reported in the 2007 Annual Report is equal to or greater
        than
        the 2007 Guaranteed ATNI,
        no
        transfer of the 2007 Make Good Shares shall be required to be made by the
        Make
        Good Pledgors to the Investors and such 2007 Make Good Shares shall be returned
        to the Make Good Pledgors in accordance with this Make Good
        Agreement.

       

      d. In
        the
        event that both (i)
        the
        earnings per share reported in the 2008 Annual Report is equal to or greater
        than the 2008 Guaranteed EPS and (ii) the after tax net income reported in
        the
        2008 Annual Report is equal to or greater than the 2008 Guaranteed
        ATNI,
        no
        transfer of the 2008 Make Good Shares shall be required to be made by the
        Make
        Good Pledgors to the Investors and such 2008 Make Good Shares shall be returned
        to the Make Good Pledgors in accordance with this Make Good
        Agreement.

       

      e. Any
        such
        transfer of the 2007 Make Good Shares or the 2008 Make Good Shares shall
        be made
        to the Investors or the Make Good Pledgors, as applicable, within 10
        Business
        Days after
        the date
which
        the
        2007
        Annual Report or 2008 Annual Report, as applicable, is filed with the Commission
        and otherwise in accordance with this Make Good Agreement.

       

      f. If
        the
        events described in Section 4(a) hereof occur, Antaeus will provide prompt
        written instruction to the Escrow Agent with regard to the distribution of
        the
        2007 Make Good Shares in an amount to each Investor as set forth on Exhibit
        A
        attached
        hereto (determined as set forth above). If the events described in Section
        4(b)
        occur, Antaeus will provide prompt written instruction to the Escrow Agent
        with
        regard to the distribution of the 2008 Make Good Shares in an amount to each
        Investor as set forth on Exhibit
        A
        attached
        hereto (determined as set forth above). The Escrow Agent need only rely on
        the
        letter of instruction from Antaeus in this regard and notwithstanding anything
        to the contrary contained herein will disregard any contrary instructions.
        

       

      
        
          
          

        

        
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      g. If
        the
        events described in Section 4(c) occur, Antaeus will provide prompt written
        instructions to the Escrow Agent for the release of the 2007 Make Good Shares
        to
        the Make Good Pledgors in an amount to each Make Good Pledgor as set forth
        on
Exhibit
        A
        attached
        hereto. If
        the
        events described in Section 4(d) occur, Antaeus
        will provide prompt written instructions to the Escrow Agent for the release
        of
        the 2008 Make Good Shares to the Make Good Pledgors in an amount to each
        Make
        Good Pledgor as set forth on Exhibit
        A
        attached
        hereto. 

       

      h. If
        Antaeus delivers a notice to the Escrow Agent that the Escrow Shares are
        to be
        transferred to the Investors, then the Escrow Agent shall immediately forward
        either the 2007 Make Good Shares or 2008 Make Good Shares, as the case may
        be,
        to the Company’s Transfer Agent for reissuance to the Investors in an amount to
        each Investor as set forth on Exhibit
        A
        attached
        hereto and otherwise in accordance with this Make Good Agreement. The Company
        covenants and agrees that upon any transfer of 2007 Make Good Shares or 2008
        Make Good Shares to the Investors in accordance with this Make Good Agreement,
        the Company shall promptly instruct its Transfer Agent to reissue such 2007
        Make
        Good Shares or 2008 Make Good Shares in the applicable Investor’s name and
        deliver the same as directed by such Investor in an amount to each Investor
        as
        set forth on Exhibit
        A
        attached
        hereto. If the Company does not promptly provide such instructions to the
        Transfer Agent of the Company, then Antaeus is hereby authorized to give
        such
        re-issuance instruction to the Transfer Agent of the Company. If a notice
        from
        Antaeus indicates that the Escrow Shares are to be returned to the Make Good
        Pledgors, then the Escrow Agent will promptly deliver either the 2007 Make
        Good
        Shares or 2008 Make Good Shares, as the case may be, to the Make Good Pledgors
        in an amount to each Make Good Pledgor as set forth on Exhibit
        A
        attached
        hereto and otherwise in accordance with this Make Good Agreement.

       

      i. Notwithstanding
        the foregoing, the parties agree that for purposes of determining whether
        or not
        the 2007 Guaranteed ATNI, the 2008 Guaranteed EPS or the 2008 Guaranteed
        ATNI
        have been achieved, (i) the release of the 2007 Make Good Shares or the 2008
        Make Good Shares to the Make Good Pledgors or any other Person designated
        by
        either of the Make Good Pledgors shall not be deemed to be an expense, charge,
        or other deduction from revenues even though GAAP may require contrary
        treatment, (ii) any
        registration liquidated damages (other than liquidated damages which may
        be
        owing by the Company due to the Company’s failure to file a Registration
        Statement by the applicable Filing Date (as defined in the Registration Rights
        Agreement)) accrued or paid by the Company for any registration rights will
        be
        excluded from the calculation of after-tax net income and earnings per share
        amounts, as applicable, and (iii) any increase in taxes payable by the Company
        or any Subsidiary as a result of recently adopted PRC tax laws or any related
        implementing regulations promulgated for the purpose of making more equal
        the
        tax treatment of foreign invested entities (including sino-foreign joint
        ventures) and domestic entities shall not be included as an
        expense.

       

      
        
          
          

        

        
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      j. The
        Company and each Make Good Pledgor covenant and agree, to provide the Escrow
        Agent with certified tax identification numbers by furnishing appropriate
        forms
        W-9 or W-8 and such other forms and documents that the Escrow Agent may request,
        including appropriate W-9 or W-8 forms for each Investor. The Company and
        each
        Make Good Pledgor understand that if such tax reporting documentation is
        not
        provided and certified to the Escrow Agent, the Escrow Agent may be required
        by
        the Internal Revenue Code of 1986, as amended, and the Regulations promulgated
        thereunder, to withhold a portion of any interest or other income earned
        on the
        investment of the Escrow Shares. 

       

      5.
        Duration.
        This
        Make Good Agreement shall terminate upon the distribution of all the Escrow
        Shares in accordance with the terms of this Make Good Agreement. The Company
        agrees to promptly provide the Escrow Agent written notice of the filing
        with
        the Commission of any financial statements or reports referenced
        herein.

       

      6.
        Escrow Shares.
        If any
        Escrow Shares are deliverable to the Investors pursuant to the SPA and in
        accordance with this Make Good Agreement, (i) each Make Good Pledgor covenants
        and agrees to execute all such instruments of transfer (including stock powers
        and assignment documents) as are customarily executed to evidence and consummate
        the transfer of the relevant portion of the Escrow Shares from such Make
        Good
        Pledgor to the Investors, to the extent not done so in accordance with Section
        2, and (ii) following its receipt of the documents referenced in Section
        6(i),
        the Company and Escrow Agent covenant and agree to cooperate with the Transfer
        Agent so that the Transfer Agent promptly reissues such Escrow Shares in
        the
        applicable Investor’s name and delivers the same as directed by such Investor.
        Until such time as (if at all) the Escrow Shares are required to be delivered
        pursuant to the SPA and in accordance with this Make Good Agreement, any
        dividends payable in respect of the Escrow Shares and all voting rights
        applicable to the Escrow Shares shall be retained by the applicable Make
        Good
        Pledgor. Should the Escrow Agent receive dividends or voting materials, such
        items shall not be held by the Escrow Agent, but shall be passed immediately
        on
        to the applicable Make Good Pledgor and shall not be invested or held for
        any
        time longer than is needed to effectively re-route such items to the applicable
        Make Good Pledgor. In the event that the Escrow Agent receives a
        communication requiring the conversion of the Escrow Shares to cash or
        the exchange of the Escrow Shares for that of an acquiring company, the Escrow
        Agent shall solicit and follow the written instructions of the applicable
        Make Good Pledgor; provided,
        that
        the cash or exchanged shares are instructed to be redeposited into the Escrow
        Account. The Make Good Pledgors shall be responsible for all taxes resulting
        from any such conversion or exchange.

       

      7.
        Interpleader. 
        Should
        any controversy arise among the parties hereto with respect to this Make
        Good
        Agreement or with respect to the right to receive the Escrow Shares, Escrow
        Agent and/or Antaeus shall have the right to consult and hire counsel and/or
        to
        institute an appropriate interpleader action to determine the rights of the
        parties. Escrow Agent and/or Antaeus are also each hereby authorized to
        institute an appropriate interpleader action upon receipt of a written letter
        of
        direction executed by the parties so directing either Escrow Agent or Antaeus.
        If Escrow Agent or Antaeus is directed to institute an appropriate interpleader
        action, it shall institute such action not prior to thirty (30) days after
        receipt of such letter of direction and not later than sixty (60) days after
        such date. Any interpleader action instituted in accordance with this Section
        7
        shall be filed in any court of competent jurisdiction in the State of New
        York,
        and the Escrow Shares in dispute shall be deposited with the court and in
        such
        event Escrow Agent and Antaeus shall be relieved of and discharged from any
        and
        all obligations and liabilities under and pursuant to this Make Good Agreement
        with respect to the Escrow Shares and any other obligations hereunder.

       

      
        
          
          

        

        
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      8. Exculpation
        and Indemnification of Escrow Agent and Antaeus. 

       

      a. Escrow
        Agent is not a party to, and is not bound by or charged with notice of any
        agreement out of which this escrow may arise. Escrow Agent acts under this
        Make
        Good Agreement as a depositary only and is not responsible or liable in any
        manner whatsoever for the sufficiency, correctness, genuineness or validity
        of
        the subject matter of the escrow, or any part thereof, or for the form or
        execution of any notice given by any other party hereunder, or for the identity
        or authority of any person executing any such notice. Escrow Agent will have
        no
        duties or responsibilities other than those expressly set forth herein. Escrow
        Agent will be under no liability to anyone by reason of any failure on the
        part
        of any party hereto (other than Escrow Agent) or any maker, endorser or other
        signatory of any document to perform such person's or entity's obligations
        hereunder or under any such document. Except for this Make Good Agreement
        and
        instructions to Escrow Agent pursuant to the terms of this Make Good Agreement,
        Escrow Agent will not be obligated to recognize any agreement between or
        among
        any or all of the persons or entities referred to herein, notwithstanding
        its
        knowledge thereof. Antaeus’ sole obligation under this Make Good Agreement is to
        provide written instruction to Escrow Agent (following such time as the Company
        files certain periodic financial reports as specified in Section 4 hereof)
        directing the distribution of the Escrow Shares. Antaeus will provide such
        written instructions upon review of the relevant earnings per share and/or
        after-tax net income amount reported in such periodic financial reports as
        specified in Section 4 hereof. Antaeus is not charged with any obligation
        to
        conduct any investigation into the financial reports or make any other
        investigation related thereto. In the event of any actual or alleged mistake
        or
        fraud of the Company, its auditors or any other person (other than Antaeus)
        in
        connection with such financial reports of the Company, Antaeus shall have
        no
        obligation or liability to any party hereunder.

       

      b. Escrow
        Agent will not be liable for any action taken or omitted by it, or any action
        suffered by it to be taken or omitted, absent gross negligence or willful
        misconduct. Escrow Agent may rely conclusively on, and will be protected
        in
        acting upon, any order, notice, demand, certificate, or opinion or advice
        of
        counsel (including counsel chosen by Escrow Agent), statement, instrument,
        report or other paper or document (not only as to its due execution and the
        validity and effectiveness of its provisions, but also as to the truth and
        acceptability of any information therein contained) which is reasonably believed
        by Escrow Agent to be genuine and to be signed or presented by the proper
        person
        or persons. The duties and responsibilities of the Escrow Agent hereunder
        shall
        be determined solely by the express provisions of this Make Good Agreement
        and
        no other or further duties or responsibilities shall be implied, including,
        but
        not limited to, any obligation under or imposed by any laws of the State
        of New
        York upon fiduciaries. THE
        ESCROW AGENT SHALL NOT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY (I) DAMAGES,
        LOSSES OR EXPENSES ARISING OUT OF THE SERVICES PROVIDED HEREUNDER, OTHER
        THAN
        DAMAGES, LOSSES OR EXPENSES WHICH HAVE BEEN FINALLY ADJUDICATED TO HAVE DIRECTLY
        RESULTED FROM THE ESCROW AGENT’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR (II)
        SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR LOSSES OF ANY KIND WHATSOEVER
        (INCLUDING, WITHOUT LIMITATION, LOST PROFITS), EVEN IF THE ESCROW AGENT HAS
        BEEN
        ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES AND REGARDLESS OF THE
        FORM
        OF ACTION.

       

      
        
          
          

        

        
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      c. The
        Company and each Make Good Pledgor hereby, jointly and severally, indemnify
        and
        hold harmless each of Escrow Agent, Antaeus and any of their principals,
        partners, agents, employees and affiliates from
        and
        against any expenses, including reasonable attorneys' fees and disbursements,
        damages or losses suffered by Escrow Agent or Antaeus in connection with
        any
        claim or demand, which, in any way, directly or indirectly, arises out of
        or
        relates to this Make Good Agreement or the services of Escrow Agent or Antaeus
        hereunder; except, that if Escrow Agent or Antaeus is guilty of willful
        misconduct or gross negligence under this Make Good Agreement, then Escrow
        Agent
        or Antaeus, as the case may be, will bear all losses, damages and expenses
        arising as a result of its own willful misconduct or gross negligence. Promptly
        after the receipt by Escrow Agent or Antaeus of notice of any such demand
        or
        claim or the commencement of any action, suit or proceeding relating to such
        demand or claim, Escrow Agent or Antaeus, as the case may be, will notify
        the
        other parties hereto in writing. For the purposes hereof, the terms "expense"
        and "loss" will include all amounts paid or payable to satisfy any such claim
        or
        demand, or in settlement of any such claim, demand, action, suit or proceeding
        settled with the express written consent of the parties hereto, and all costs
        and expenses, including, but not limited to, reasonable attorneys' fees and
        disbursements, paid or incurred in investigating or defending against any
        such
        claim, demand, action, suit or proceeding. The provisions of this Section
        8
        shall survive the termination of this Make Good Agreement, and the resignation
        or removal of the Escrow Agent. 

       

      9.
        Compensation of Escrow Agent.
        Escrow
        Agent shall be entitled to compensation for its services as stated in the
        fee
        schedule attached hereto as Exhibit
        B,
        which
        compensation shall be paid by the Company. The fee agreed upon for the services
        rendered hereunder is intended as full compensation for Escrow Agent's services
        as contemplated by this Make Good Agreement; provided,
        however,
        that in
        the event that Escrow Agent renders any material service not contemplated
        in
        this Make Good Agreement, or there is any assignment of interest in the subject
        matter of this Make Good Agreement, or any material modification hereof,
        or if
        any material controversy arises hereunder, or Escrow Agent is made a party
        to
        any litigation pertaining to this Make Good Agreement, or the subject matter
        hereof, then Escrow Agent shall be reasonably compensated by the Company
        for
        such extraordinary services and reimbursed for all costs and expenses, including
        reasonable attorney's fees, occasioned by any delay, controversy, litigation
        or
        event, and the same shall be recoverable from the Company. Prior
        to
        incurring any costs and/or expenses in connection with the foregoing sentence,
        Escrow Agent shall be required to provide written notice to the Company of
        such
        costs and/or expenses and the relevancy thereof and Escrow Agent shall not
        be
        permitted to incur any such costs and/or expenses which are not related to
        litigation prior to receiving written approval from the Company, which approval
        shall not be unreasonably withheld.

       

      
        
          
          

        

        
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      10.
        Resignation of Escrow Agent.
        At any
        time, upon ten (10) days' written notice to the Company, Escrow Agent may
        resign
        and be discharged from its duties as Escrow Agent hereunder. As soon as
        practicable after its resignation, Escrow Agent will promptly turn over to
        a
        successor escrow agent appointed by the Company the Escrow Shares held hereunder
        upon presentation of a document appointing the new escrow agent and evidencing
        its acceptance thereof. If, by the end of the 10-day period following the
        giving
        of notice of resignation by Escrow Agent, the Company shall have failed to
        appoint a successor escrow agent, Escrow Agent may interplead the Escrow
        Shares
        into the registry of any court having jurisdiction. 

       

      11.
        Records.
        Escrow
        Agent shall maintain accurate records of all transactions hereunder. Promptly
        after the termination of this Make Good Agreement or as may reasonably be
        requested by the parties hereto from time to time before such termination,
        Escrow Agent shall provide the parties hereto, as the case may be, with a
        complete copy of such records, certified by Escrow Agent to be a complete
        and
        accurate account of all such transactions. The authorized representatives
        of
        each of the parties hereto shall have access to such books and records at
        all
        reasonable times during normal business hours upon reasonable notice to Escrow
        Agent and at the requesting party’s expense. 

       

      12.
        Notice.
        All
        notices, communications and instructions required or desired to be given
        under
        this Make Good Agreement must be in writing and shall be deemed to be duly
        given
        if sent by registered or certified mail, return receipt requested, or overnight
        courier, to the addresses listed on the signature pages hereto.

       

      13.
        Execution in Counterparts.
        This
        Make Good Agreement may be executed in counterparts, each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument. 

       

      14.
        Assignment and Modification.
        This
        Make Good Agreement and the rights and obligations hereunder of any of the
        parties hereto may not be assigned without the prior written consent of the
        other parties hereto. Subject to the foregoing, this Make Good Agreement
        will be
        binding upon and inure to the benefit of each of the parties hereto and their
        respective successors and permitted assigns. No other person will acquire
        or
        have any rights under, or by virtue of, this Make Good Agreement. No portion
        of
        the Escrow Shares shall be subject to interference or control by any creditor
        of
        any party hereto, or be subject to being taken or reached by any legal or
        equitable process in satisfaction of any debt or other liability of any such
        party hereto prior to the disbursement thereof to such party hereto in
        accordance with the provisions of this Make Good Agreement. This Make Good
        Agreement may be amended or modified only in writing signed by all of the
        parties hereto. 

       

      
        
          
          

        

        
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      15.
        Applicable Law.
        This
        Make Good Agreement shall be governed by and construed in accordance with
        the
        laws of the State of New York without giving effect to the principles of
        conflicts of laws thereof. 

       

      16.
        Headings.
        The
        headings contained in this Make Good Agreement are for convenience of reference
        only and shall not affect the construction of this Make Good Agreement.

       

      17.
        Attorneys' Fees.
        If any
        action at law or in equity, including an action for declaratory relief, is
        brought to enforce or interpret the provisions of this Make Good Agreement,
        the
        prevailing party shall be entitled to recover reasonable attorneys' fees
        from
        the other party (unless such other party is the Escrow Agent), which fees
        may be
        set by the court in the trial of such action or may be enforced in a separate
        action brought for that purpose, and which fees shall be in addition to any
        other relief that may be awarded.

       

      18.
        Merger or Consolidation.
        Any
        corporation or association into which the Escrow Agent may be converted or
        merged, or with which it may be consolidated, or to which it may sell or
        transfer all or substantially all of its corporate trust business and assets
        as
        a whole or substantially as a whole, or any corporation or association resulting
        from any such conversion, sale, merger, consolidation or transfer to which
        the
        Escrow Agent is a party, shall be and become the successor escrow agent under
        this Make Good Agreement and shall have and succeed to the rights, powers,
        duties, immunities and privileges as its predecessor, without the execution
        or
        filing of any instrument or paper or the performance of any further act.
        

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the parties have duly executed this Make Good Agreement
        as of
        the date set forth opposite their respective names.

       

      
        	
                COMPANY:

              	
                INTRA-ASIA
                  ENTERTAINMENT CORPORATION

                By:_______________________________

                Name:
                  

                Title:
                  

                 

                Address:

                No.
                  113 Zhichunlu, Haidian District

                Beijing,
                  China 100086 

                Facsimile:
                  86-10-62637657

                Attn.:
                  Chairman

              
	 	 
	
                MAKE
                  GOOD PLEDGORS:

              	
                KARMEN
                  INVESTMENT HOLDINGS LTD.

                By:_______________________________

                Name:
                  

                Title:
                  

                 

                Address:

                c/o
                  Intra-Asia Entertainment Corporation

                No.
                  113 Zhichunlu, Haidian District 

                Beijing,
                  China 100086 

                Facsimile:
                  86-10-62637657

                Attn.:
                  Chairman

              
	 	 
	 	
                LEGUNA
                  VERDE INVESTMENTS LTD.

                By:_______________________________

                Name:
                  

                Title:
                  

                 

                Address:

                c/o
                  Intra-Asia Entertainment Corporation

                No.
                  113 Zhichunlu, Haidian District 

                Beijing,
                  China 100086 

                Facsimile:
                  86-10-62637657

                Attn.:
                  Chairman

              

      

       

      [REMAINDER
        OF THIS PAGE INTENTIONALLY LEFT BLANK

      SIGNATURE
        PAGE FOR OTHER PARTIES FOLLOWS]

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      
        	
                ESCROW
                  AGENT:

              	
                SECURITIES
                  TRANSFER CORPORATION

                 

                By:______________________________________

                Name:
                  

                Title:
                  

                 

                Address:

                2591
                  Dallas Parkway, Suite 102

                Frisco,
                  TX 75034

              
	 	 
	
                ANTAEUS:

              	
                ANTAEUS
                  CAPITAL, INC.

                 

                By:______________________________________

                Name:
                  

                Title:
                  

                 

                Address:

                9952
                  S. Santa Monica Blvd., Suite 210

                Beverly
                  Hills, CA 90212

                Fax:
                  310-943-2371

                Attention:
                  Cesar Moya, President

              
	 	 
	
                INVESTORS:

              	
                NAME
                  OF INVESTOR:

                 

                _________________________________________

                 

                By:      

                Name:
                  

                Title:
                  

                Address:__________________________________

                _________________________________________

                _________________________________________

                _________________________________________

                 

                 

                 

              

      

      

      
        
          
          

        

        
          11Unassociated Document

    Exhibit
      10.3

    
      

        CLOSING
          ESCROW AGREEMENT

        

        

        THIS
          CLOSING ESCROW AGREEMENT,
          dated
          May 14, 2007 (“Escrow
          Agreement”),
          is
          entered into by and between Intra-Asia Entertainment Corporation, a Nevada
          corporation (the "Company"),
          the
          selling stockholders identified on the signature pages hereto (each a
“Selling
          Stockholder” and
          collectively, the “Selling
          Stockholders”),
          Antaeus Capital, Inc. (the “Placement
          Agent”)
          and
          Thelen Reid Brown Raysman & Steiner LLP (the "Escrow
          Agent").

        

        WHEREAS,
          concurrently herewith the Company, the Selling Stockholders and Investors
          are
          entering into a Securities Purchase Agreement, dated as of the date hereof
          (the
          "Purchase
          Agreement"),
          pursuant to which each Investor (as defined therein) has agreed to purchase
          from
          the Company, and the Company has agreed to sell to each Investor, the number
          of
          Shares and each Investor has agreed to purchase from the Selling Stockholders,
          and the Selling Stockholders have agreed to sell to each Investor, the
          number of
          Selling Stockholder Shares identified therein (capitalized terms used and
          not
          otherwise defined herein shall have the meanings given such terms in the
          Purchase Agreement);

        

        WHEREAS, pursuant
          to the Purchase Agreement, the Company, the Selling Stockholders and the
          Investors have agreed to establish an escrow on the terms and conditions
          set
          forth in this Escrow Agreement; and

        

        WHEREAS,
          the
          Escrow Agent is willing to accept appointment as Escrow Agent for only
          the
          expressed duties outlined herein.

        

        NOW,
          THEREFORE,
          in
          consideration of the premises set forth above and other good and valuable
          consideration, the receipt of which is hereby acknowledged, the parties
          hereto
          agree as follows:

        

        1.
          Proceeds to be Escrowed. A
          copy of
          the Purchase Agreement is attached as Exhibit
          A.
          All
          amounts provided by the Investors in connection with their acquisition
          of the
          Securities as set forth in the Purchase Agreement shall be deposited directly
          with the Escrow Agent in immediately available funds by federal wire transfer,
          such funds being referred to herein as the “Escrow
          Funds.”
The
          Escrow Funds shall be retained in escrow by the Escrow Agent in a separate
          account and invested as stated below. 

        

        2.
          Identity of Investors. Concurrent
          with the execution of the Escrow Agreement, the Company shall furnish to
          the
          Escrow Agent the information comprising the identity of the Investors in
          the
          format set forth in the “List
          of Investors”
          attached as Exhibit
          B,
          or in
          an electronic spreadsheet format with the same information. All Escrow
          Funds
          shall remain the property of the Investors and shall not be subject to
          any liens
          or charges by the Company or the Escrow Agent or judgments or creditors'
          claims
          against the Company, until released to the Company as hereinafter provided.
          Escrow Agent will not use the information provided to it by the Company
          for any
          purpose other than to fulfill its obligations as Escrow Agent. The Company
          and
          the Escrow Agent will treat all Investor information as
          confidential.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        3.
          Disbursement of Funds.

        

        (a) The
          Escrow Agent shall continue to hold the Escrow Funds delivered for deposit
          hereunder by an Investor until the earlier of: (1) receipt of a joint written
          notice from the Company and the Investors evidencing termination under
          Section
          6.5(a) of the Purchase Agreement, (2) receipt of a written notice from
          the
          Company, a Selling Stockholder or such Investor evidencing termination
          under
          Section 6.5(b) of the Purchase Agreement (each of (1) and (2), a “Termination
          Election”)
          and
          (3) receipt of both (x) written notice from the Company that the conditions
          to
          closing under Section 5.1 of the Purchase Agreement have been satisfied
          or
          waived in accordance with the Purchase Agreement and (y) joint written
          notice
          from the Company and the Placement Agent to effect the Closing.

        

        (b) If
          the
          Escrow Agent receives a Termination Election prior to its receipt of the
          notices
          contemplated under Section 3(a)(3), then the Escrow Agent shall return
          the
          Escrow Funds delivered by such Investor as directed by such Investor. If
          the
          Escrow Agent receives the notices contemplated under Section 3(a)(3) prior
          to a
          Termination Election, then the Escrow Agent shall disburse the Escrow Funds
          in
          accordance with Exhibit
          C
          to this
          Escrow Agreement.

        

        4.
          Duty and Limitation on Liability of the Escrow Agent. The
          sole
          duty of the Escrow Agent shall be to receive the Escrow Funds and to hold
          them
          subject to release, in accordance herewith, and the Escrow Agent shall
          be under
          no duty to determine whether the Company is complying with requirements
          of the
          Escrow Agreement or the Purchase Agreement. The Escrow Agent may conclusively
          rely upon and shall be protected in acting upon any statement, certificate,
          notice, request, consent, order or other document believed by it to be
          genuine
          and to have been signed or presented by the proper party or parties. The
          Escrow
          Agent shall have no duty or liability to verify any such statement, certificate,
          notice, request, consent, order or other document, and its sole responsibility
          shall be to act only as expressly set forth in the Escrow Agreement. The
          Escrow
          Agent shall be under no obligation to institute or defend any action, suit
          or
          proceeding in connection with the Escrow Agreement unless first indemnified
          to
          its satisfaction. The Escrow Agent may consult counsel of its own choice
          with
          respect to any question arising under the Escrow Agreement and the Escrow
          Agent
          shall not be liable for any action taken or omitted in good faith upon
          advice of
          such counsel.  In
          the
          event that the Escrow Agent shall be uncertain as to its duties or rights
          hereunder or shall receive instructions with respect to the Escrow Funds
          which,
          in its sole opinion, are in conflict with either other instructions received
          by
          it or any provision of this Escrow Agreement, or if the Escrow Agent has
          not
          been provided with instructions regarding the Escrowed Funds, it shall
          be
          entitled to hold the Escrow Funds pending the resolution of such uncertainty
          to
          the Escrow Agent's sole satisfaction, final judgment of a court or courts
          of
          competent jurisdiction, or otherwise.

         

        In
          no
          event shall the Escrow Agent be liable, directly or indirectly, for any
          (a)
          damages or expenses arising out of the services provided hereunder, other
          than
          damages which result from the Escrow Agent’s gross negligence or willful
          misconduct or (b) special or consequential damages, even if the Escrow
          Agent has
          been advised of the possibility of such damages.

        

        The
          Escrow Agent shall be obligated only to perform the duties specifically
          set
          forth in this Escrow Agreement, which shall be deemed purely ministerial
          in
          nature, and shall under no circumstances be deemed to be a fiduciary to
          the
          Company, the Placement Agent or any other person. The Escrow Agent shall
          not
          assume any responsibility for the failure of the Company to perform in
          accordance with this Escrow Agreement. This Escrow Agreement sets forth
          all
          matters pertinent to the escrow contemplated hereunder, and no additional
          obligations of the Escrow Agent shall be implied by nor inferred from the
          terms
          of any other agreement, including, without limitation, the Purchase
          Agreement.

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        Under
          no
          circumstances shall the Escrow Agent be expected or required to use, risk
          or
          advance its own funds in the performance of its duties or exercise of its
          rights
          hereunder.

        

        The
          Investors (by agreeing to use this form of Closing Escrow Agreement), the
          Selling Stockholders and the Placement Agent acknowledge that they are
          aware
          that the Escrow Agent has represented the Company in connection with the
          Purchase Agreement and this Escrow Agreement and that Escrow Agent may
          continue
          to represent the Company in that connection and in connection with the
          transactions contemplated by those agreements, including, but not limited
          to, in
          connection with any disputes that may arise under either of those agreements.
          The Escrow Agent shall not be precluded from or restricted from representing
          the
          Company or any of its affiliates or otherwise acting as attorneys for the
          Company or any of its affiliates in any matter, including, but not limited
          to,
          any court proceeding or other matter related to the Purchase Agreement
          or the
          transactions contemplated by the Purchase Agreement, or this Escrow Agreement
          or
          the Escrow Funds, whether or not there is a dispute between the Investors,
          the
          Selling Stockholders, the Placement Agent and/or the Company with respect
          to any
          such matter. 

        

        5.
          Interpleader.
          The
          Escrow Agent may at any time commence an action in the nature of interpleader
          or
          other legal proceedings and may deposit the Escrow Funds with the clerk
          of the
          court. In the event of any dispute regarding who is entitled to the Escrow
          Funds
          at any time, the Escrow Agent may determine not to release the Escrow Funds
          to
          any Investor, the Company or a Selling Stockholder (as the case may be)
          and may
          commence an interpleader action as aforesaid or may cause the Escrow Funds
          to be
          deposited with a court of competent jurisdiction whereupon it shall cease
          to
          have any further obligation hereunder. Upon any delivery or deposit of
          the
          Escrow Funds as provided in this Section 5, the Escrow Agent shall be released
          and discharged from any further obligation under this Agreement.

        

        6.
          Investment of Proceeds.  The
          Escrow Funds shall be credited by Escrow Agent and recorded in a non-interest
          bearing escrow account. The
          Company agrees to indemnify and hold Escrow Agent harmless from and against
          any
          taxes, additions for late payment, interest, penalties and other expenses
          that
          may be assessed against Escrow Agent on or with respect to any payment
          or other
          activities under this Escrow Agreement unless any such tax, addition for
          late
          payment, interest, penalties and other expenses shall arise out of or be
          caused
          by the gross negligence or willful misconduct of the Escrow Agent.

         

        The
          Company acknowledges that Escrow Agent is not providing investment supervision,
          recommendations or advice.

         

        7.
          Notices. All
          notices, requests, demands and other communications under the Escrow Agreement
          shall be in writing and shall be deemed to have been duly given (a) on
          the date
          of service if served personally on the party to whom notice is to be given,
          (b)
          on the day of transmission if sent by facsimile/email transmission to the
          facsimile number/email address given below, and telephonic confirmation
          of
          receipt is obtained promptly after completion of transmission, (c) on the
          day
          after delivery to Federal Express or similar overnight courier or the Express
          Mail service maintained by the United States Postal Service or (d) on the
          fifth
          day after mailing, if mailed to the party to whom notice is to be given,
          by
          first class mail, registered or certified, postage prepaid, and properly
          addressed, return receipt requested, to the party as follows:

        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        

          
            	
                    If
                      to the Company:

                  	
                    Intra-Asia
                      Entertainment Corporation

                  
	 	
                    No.
                      113 Zhichunlu, Haidian District

                  
	
                     

                  	
                    Beijing,
                      China 100086

                  
	 	
                    Facsimile:
                      86-10-62637657

                  
	 	
                    Attn.:
                      Chairman

                  
	 	 
	 	 
	
                    If
                      to Escrow Agent:

                  	
                    Thelen
                      Reid Brown Raysman & Steiner LLP

                  
	 	
                    701
                      Eighth Street, NW

                  
	 	
                    Washington,
                      DC 20001

                  
	 	
                    Facsimile:
                      202-508-4321

                  
	 	
                    Attn.:
                      Louis A. Bevilacqua, Esq.

                  
	 	 
	
                    If
                      to the Placement Agent:

                  	
                    Antaeus
                      Capital, Inc.

                  
	 	
                    9952
                      S. Santa Monica Blvd.

                  
	 	
                    Suite
                      210

                  
	 	
                    Beverly
                      Hills, CA 90212

                  
	 	
                    Facsimile:
                      (310) 943-2371

                  
	 	
                    Attn.:
                      Cesar Moya

                  
	 	 
	
                    If
                      to a Selling:

                    Stockholder

                  	
                    To
                      the address set forth on its signature page
                      hereto.

                  

          

        

        Any
          party
          may change its address for purposes of this paragraph by giving the other
          party
          written notice of the new address in the manner set forth above.

        

        8.
          Indemnification of Escrow Agent. The
          Company hereby indemnifies and holds harmless the Escrow Agent from and
          against
          any and all loss, liability, cost, damage and expense, including, without
          limitation, attorneys fees and court costs, which the Escrow Agent may
          suffer or
          incur by reason of any action, claim or proceeding brought against the
          Escrow
          Agent arising out of or relating in any way to the Escrow Agreement or
          any
          transaction to which the Escrow Agreement relates unless such action, claim
          or
          proceeding is the result of the willful misconduct or gross negligence
          of the
          Escrow Agent. For this purpose, the term "attorneys' fees" includes fees
          payable
          to any counsel retained by the Escrow Agent in connection with its services
          under this Agreement and, with respect to any matter arising under this
          Escrow
          Agreement as to which the Escrow Agent performs legal services, if and
          to the
          extent that the Escrow Agent itself is a law firm, its standard hourly
          rates and
          charges then in effect. All of the Escrow Agent's rights of indemnification
          provided for in this Escrow Agreement shall survive the resignation of
          the
          Escrow Agent, its replacement by a successor Escrow Agent, its delivery
          or
          deposit of the Escrow Funds in accordance with this Escrow Agreement, the
          termination of this Escrow Agreement, and any other event that occurs after
          this
          date.

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        9.
          Successors and Assigns. Except
          as
          otherwise provided in the Escrow Agreement, no party hereto shall assign
          the
          Escrow Agreement or any rights or obligations hereunder without the prior
          written consent of the other parties hereto and each Investor and any such
          attempted assignment without such prior written consent shall be void and
          of no
          force and effect. The Escrow Agreement shall inure to the benefit of and
          shall
          be binding upon the successors and permitted assigns of the parties
          hereto.

        

        10.
          Governing Law; Jurisdiction. The
          Escrow Agreement shall be construed, performed and enforced in accordance
          with,
          and governed by the internal laws of the State of New York, without giving
          effect to the principles of conflicts of laws thereof.

        

        11.
          Severability. In
          the
          event that any part of the Escrow Agreement is declared by any court or
          other
          judicial or administrative body to be null, void, or unenforceable, said
          provision shall survive to the extent it is not so declared, and all of
          the
          other provisions of the Escrow Agreement shall remain in full force and
          effect.

        

        12.
          Amendments; Waivers. The
          Escrow Agreement may be amended or modified, and any of the terms, covenants,
          representations, warranties or conditions hereof may be waived, only by
          a
          written instrument executed by each of the parties hereto and the Investors
          then
          owning a majority of the Securities then held by Investors. Any waiver
          by any
          party of any condition or of the breach of any provision, term, covenant,
          representation or warranty contained in the Escrow Agreement, in any one
          or more
          instances, shall not be deemed to be nor construed as further or continuing
          waiver of any such condition, or of the breach of any other provision,
          term,
          covenant, representation or warranty of the Escrow Agreement.

        

        13.
          Entire Agreement. The
          Escrow Agreement contains the entire understanding among the parties hereto
          with
          respect to the escrow contemplated hereby and supersedes and replaces all
          prior
          and contemporaneous agreements and understandings, oral or written, with
          regard
          to such escrow.

        

        14.
          Section Headings. The
          section headings in the Escrow Agreement are for reference purposes only
          and
          shall not affect the meaning or interpretation of the Escrow
          Agreement.

        

        15.
          Counterparts. The
          Escrow Agreement may be executed in facsimile and in any number of counterparts,
          each of which when so executed and delivered shall be deemed an original,
          but
          all of which shall together constitute one and the same agreement.

        

        16.
          Resignation. Escrow
          Agent may resign upon 15 days advance written notice to the Company. If
          a
          successor escrow agent is not appointed within the 15-day period following
          such
          notice, Escrow Agent may petition any court of competent jurisdiction to
          name a
          successor escrow agent or interplead the Escrow Funds with such court,
          whereupon
          Escrow Agent’s duties hereunder shall terminate.

        

        17.
          Third-Party Beneficiaries.
          This
          Agreement is intended for the benefit of the parties hereto and their respective
          successors and permitted assigns and is not for the benefit of, nor may
          any
          provision hereof be enforced by, any other person or entity, except for
          the
          Investors.

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        IN
          WITNESS WHEREOF,
          the
          parties hereto have caused the Escrow Agreement to be executed the day
          and year
          first set forth above.

        

        INTRA-ASIA
          ENTERTAINMENT CORPORATION

        

        By: 
          /s/

        
          

        

        Name:
          

        Title:
          

        

        ANTAEUS
          CAPITAL, INC.

        

        
          By: 
            /s/

          
            

          

          Name:
            

          Title:
            

        THELEN
          REID BROWN RAYSMAN & STEINER LLP

        

        
          
            By: 
              /s/

            
              

            

            Name:
              

            Title:
              

        

        SELLING
          STOCKHOLDERS:

        

        WEICHENG
          INTERNATIONAL INC.

        
 

        
          
            By: 
              /s/

            
              

            

            Name:
              

            Title:
              

        

        Address:
          ___________________________________

        _____________________________________

        Fax:_______________________________________

        

        FOSTER
          GROWTH LTD.

         

        
           

          By: 
            /s/

          
            

          

          Name:
            

          Title:
            

           

        

        
          Address:
            ___________________________________

          _____________________________________

          Fax:_______________________________________

        

      

       

      
        
          
          

        

        
          6

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