Document:

Unassociated Document

     

    DATED: 2
June 2008

    Hong
Kong/020/063588-00001/JDH/PYYL:
L_LIVE_APAC1:549229v3

     

    Second
Amendment Agreement

     

    between

     

    Xdlong
International Company Limited

    as
Company

     

    Elevatech
Limited

    as
Investor

     

    and

    

    Mr Lin
Shuipan

    as Founder
Shareholder

     

    relating
to

     

    a Subscription Agreement
dated 28 March 2008 as amended and restated by an Amendment and
Restatement Agreement dated 30 April 2008

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    THIS
AGREEMENT is
dated 2 June 2008 and made

     

    BETWEEN:

     

    
      	
              (1)

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

            

    

    
      	
              (2)

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

            

    

    
      	
              (3)

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

            

    

     

    BACKGROUND:

     

    
      
        	
                A.

              	
                The
      parties to this Agreement (“Parties”)
      are parties to a subscription agreement with respect
      to a certain number of preferred shares in the issued share capital of the
      Company dated
      28 March 2008 as amended and restated by an amendment and
      restatement agreement
      dated 30 April 2008 between the Parties (“Subscription
      Agreement”).

              

      

    

     

    
      
        	
                B.

              	
                The
      Parties have agreed to further amend the Subscription Agreement on and
      subject to
      the
      terms of this Agreement.

              

      

    

     

    IN
CONSIDERATION OF THE MUTUAL PROMISES CONTAINED IN THIS AGREEMENT THE PARTIES
AGREE as
follows:

     

    
      	
              1.

            	
              Interpretation

            

    

     

    
      
        	
                1.1

              	
                The
      terms of clauses 1.1 and 1.2 of the Subscription Agreement shall apply to
      this Agreement with such changes as are
  necessary.

              

      

    

     

    
      	
              2.

            	
              Amendments to the
      Subscription Agreement

            

    

     

    
      
        	
                2.1

              	
                With
      effect from the date of this Agreement, the Subscription Agreement is
      further amended by:

              

      

    

     

    
      
        	
              	
                (A)

              	
                deleting
      the original clause 5.5(B) of the Subscription Agreement in its entirety
      and replacing
      by the following
      new clause 5.5(B):

              

      

    

     

    
      
        	
              	
                “(B)

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

              

      

    

     

    
      	
            	
              (1)

            	
              a
      listing is granted by a Stock Exchange;
and

            

    

     

    
      
        
          	
                	
                  (2)

                	
                  in
      the determination of the indicative price range for the proposed
      IPO,
      the Founder Shareholder becomes aware that a market capitalization
      of US$650 million may not be achieved based upon
      the
      price at the lower end of such indicative price
      range.”;

                

        

      

    

     

    
      
        	
              	
                (B)

              	
                deleting
      the words “, on a Pro-rata Basis and on a several basis,” on the
      second
      and
      third lines of clause 5.5(C) of the Subscription
  Agreement;

              

      

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                (C)

              	
                deleting
      the original paragraph 9.3 in schedule 2 – Adjustment of
      Consideration of
      the
      Subscription Agreement in its entirety and replacing by the following
      new
      paragraph
      9.3:

              

      

    

     

    
      
        	
              	
                “9.3

              	
                If,
      prior to a Qualified IPO, there is any shortfall between the number of
      Shares that are held and transferable by the Founder Shareholder to the
      Investor at the time of an Adjustment Event and the number of Shares the
      Founder Shareholder is obliged to transfer to the Investor pursuant to
      paragraphs 2, 3 and/or 4, the Investor shall have the right (but not the
      obligation) to require the Founder Shareholder to purchase all or a part
      of the Investor Shares for cash at a per Share price that shall be sum of
      the Initial Valuation per Share plus a return that yields 12% IRR of the
      Performance Adjusted Per Share Price. For the avoidance of doubt, the word
      “transferable” when used in this paragraph 9.3 in relation to Shares of
      the Founder Shareholder shall mean those Shares of the Founder Shareholder
      which are not subject to any disposal restriction under any applicable
      rules or regulations of the Stock
Exchange.”;

              

      

    

     

    
      
        	
              	
                (D)

              	
                deleting
      the original paragraph 10.1 in schedule 2 – Adjustment of
      Consideration of
      the
      Subscription Agreement in its entirety and replacing by the following
      new
      paragraph
      10.1:

              

      

    

     

    
      
        	
              	
                “10.1

              	
                The
      Investor shall have a right to elect, by notice in writing to the Founder
      Shareholder, that the value of the Adjustment Shares, the Further
      Adjustment Shares or the IPO Adjustment Shares (as the case may be) be
      paid in cash to the Investor by the Founder Shareholder in lieu of the
      Founder Shareholder transferring the Adjustment Shares, the Further
      Adjustment Shares or the IPO Adjustment Shares (as the case may
      be).

              

      

    

     

    
      
        	
              	
                (A)

              	
                The
      cash payable upon occurrence of any Adjustment Event pursuant to paragraph
      2 or 3 shall be calculated as
follows:

              

      

    

     

    
      
        
          	
                  Cash
      payment

                	= 
      	
                  the
      number of

                  Adjustment

                  Shares
      or

                  Further

                  Adjustment

                  Shares

                	
                  X   

                	
                  the
      average closing price of the Company’s Shares quoted by the Hong Kong
      Stock Exchange or any other Stock Exchange where the Company’s Shares are
      traded for the 10 trading days prior to the election by the
      Investor.

                

        

      

    

    
      
        
          
             

          

        

      

    

    
      
        	
              	
                (B)

              	
                The
      cash payable upon occurrence of an Adjustment Event pursuant to paragraph
      11 shall be calculated as
follows:

              

      

    

     

    
      
        	
                Cash
      payment

              	
                =

              	
                the
      number of IPO Adjustment
      Shares       X       IPO
      Price”; 

              

      

    

     

    
      
        	
              	
                (E)

              	
                immediately
      following the last sentence of paragraph 10.2 in schedule 2 –
      Adjustment of Consideration of the Subscription Agreement, insert the
      following:

              

      

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “For the
avoidance of doubt, the word “transferable” when used in this paragraph 10.2 in
relation to Shares of the Founder Shareholder shall mean those Shares of the
Founder Shareholder which are not subject to any disposal restriction under any
applicable rules or regulations of the Stock Exchange.”

     

    
      
        	
                2.2

              	
                With
      effect from the date of this Agreement, the rights and obligations of the
      Parties shall be governed by the Subscription Agreement as amended by this
      Agreement.

              

      

    

     

    
      	
              3. 

            	
              Amendments not to
      Affect Validity, Rights or
Obligations

            

    

     

    
      	
              3.1

            	
              Continuing
      Provisions

            

    

     

    The
provisions of the Subscription Agreement shall, in respect of the period up to
the date of this Agreement, continue in full force and effect in accordance with
their terms.

     

    
      	
              3.2

            	
              No
      Prejudice or Discharge

            

    

     

    Nothing
in this Agreement:

     

    
      
        	
              	
                (A)

              	
                prejudices
      or adversely affects any right, power, authority, discretion or remedy
      arising under the Subscription Agreement before the date of this
      Agreement; or

              

      

    

     

    
      
        	
              	
                (B)

              	
                discharges,
      releases or otherwise affects any liability or obligation arising under
      the Subscription Agreement before the date of this
    Agreement.

              

      

    

     

    
      	
              4.

            	
              General

            

    

     

    
      
        	
                4.1

              	
                The
      terms of clauses 13.2, 13.5, 13.7 and 13.8 of the Subscription Agreement
      shall be incorporated into this Agreement and have effect in full as if
      set out in this Agreement and as if references therein to “this Agreement”
      are references to this Agreement and such other changes as are
      necessary.

              

      

    

     

    
      	
              5.

            	
              Law and
      jurisdiction

            

    

     

    
      
        	
                5.1

              	
                The
      terms of clause 15 of the Subscription Agreement shall be incorporated
      into this Agreement and have effect in full as if set out in this
      Agreement and as if references therein to “this Agreement” are references
      to this Agreement and such other changes as are
  necessary.

              

      

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    AS
WITNESS the hands of the Parties or their duly authorised representatives
the day and year first above written.

     

    
      
        
          
            
              
                
                  
                    	
                            Mr
      Lin Shuipan

                            duly
      authorised for and on

                            behalf
      of XDLONG
      INTERNATIONAL

                            COMPANY
      LIMITED

                          	
                            )

                            )

                            )

                            )

                          	
	 	 	 
	
                            SIGNED
      by MR LIN
      SHUIPAN

                          	
                            )

                          	  
	 	 	 
	
                            SIGNED
      by Mr Kevin Zhang

                            duly
      authorised for and on

                            behalf
      of the ELEVATECH
      LIMITED

                          	
                            )

                            )

                            )

                          	 
      

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    AS
WITNESS the hands of the Parties or their duly authorised representatives
the day and year first above written.

    

    
      
        
          
            
              
                	
                        Mr
      Lin Shuipan

                        duly
      authorised for and on

                        behalf
      of XDLONG
      INTERNATIONAL

                        COMPANY
      LIMITED

                      	
                        )

                        )

                        )

                        )

                      	 
      
	 	 	 
	 	 	 
	
                        SIGNED
      by MR LIN
      SHUIPAN

                      	
                        )

                      	 
      
	 	 	 
	 	 	 
	
                        SIGNED
      by Mr Kevin Zhang

                        duly
      authorised for and on

                        behalf
      of the ELEVATECH
      LIMITED

                      	
                        )

                        )

                        )

                      	

              

            

          

        

      

    

     

    
      
        
        

      

      
        4DATED: 2
June 2008

    Hong
Kong/020/063588-00001/JDH/PYYL:
L_LIVE_APAC1:549180v3

     

    Second
Amendment Agreement

     

    between

     

    Mr Lin
Shuipan and Richwise International Investment Group Limited

    as
Selling Shareholders

     

    Dr Shi
Jinlei

    as
Indemnifier

     

    Elevatech
Limited

    as
Investor

     

    and

     

    Xdlong
International Company Limited

    as Company

     

    relating
to

     

    a Share
Purchase Agreement dated 28 March 2008 as amended and restated by an Amendment
and Restatement Agreement dated 30 April 2008

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    THIS
AGREEMENT is
dated 2 June 2008 and made 

     

    BETWEEN:

     

    
      	
              (1)

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

            

    

     

    
      	
              (2)

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

            

    

     

    
      	
              (3)

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

            

    

     

    
      	
              (4)

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

            

    

     

    
      	
              (5)

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

            

    

     

    BACKGROUND:

     

    
      
        	
                A.

              	
                The
      parties to this Agreement (“Parties”) are parties to a share purchase
      agreement with respect
      to a certain number of preferred shares in the issued share capital of the
      Company
      dated
      28 March 2008 as amended and restated by an Amendment and
      Restatement
      Agreement
      dated 30 April 2008 between the Parties (“Share Purchase
      Agreement”).

              

      

    

     

    
      
        	
                B.

              	
                The
      Parties have agreed to further amend the Share Purchase Agreement on and
      subject to
      the terms of this Agreement.

              

      

    

     

    IN
CONSIDERATION OF THE MUTUAL PROMISES CONTAINED IN THIS AGREEMENT THE PARTIES
AGREE as
follows:

     

    
      	
              1.

            	
              Interpretation

            

    

     

    
      
        	
                1.1

              	
                The
      terms of clauses 1.1 and 1.2 of the Share Purchase Agreement shall apply
      to this Agreement with such changes as are
  necessary.

              

      

    

     

    
      	
              2.

            	
              Amendments
      to the
      Share Purchase
      Agreement

            

    

     

    
      
        	
                2.1

              	
                With
      effect from the date of this Agreement, the Share Purchase Agreement is
      further amended by:

              

      

    

     

    
      
        	
              	
                (A)

              	
                deleting
      the original clause 5.5(B) of the Share Purchase Agreement in its entirety
      and replacing by the following new clause
  5.5(B):

              

      

    

     

    
      
        	
              	
                
                  “(B)

                

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

              

      

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (1)

            	
              a
      listing is granted by a Stock Exchange;
and

            

    

     

    
      
        	
              	
                (2)

              	
                in
      the determination of the indicative price range for the proposed IPO, the
      Selling Shareholders become aware that a market capitalization of US$650
      million may not be
      achieved based upon the price at the lower end of such indicative
      price range.”;

              

      

    

     

    
      
        	
              	
                (B)

              	
                deleting
      the original paragraph 9.3 in schedule 5 – Adjustment of Consideration
      of
      the
      Share Purchase Agreement in its entirety and replacing by the following
      new
      paragraph
      9.3:

              

      

    

     

    
      
        	
              	
                “9.3

              	
                If,
      prior to a Qualified IPO, there is any shortfall between the number of
      Shares that are held and transferable by any Selling Shareholder to the
      Investor at the time of an Adjustment Event and the number of Shares such
      Selling Shareholder is obliged to transfer to the Investor pursuant to
      paragraphs 2, 3 and/or 4, the Investor shall have the right (but not the
      obligation) to require the Selling Shareholders to purchase all or a part
      of the Investor Shares for cash at a per Share price that shall be sum of
      the Initial Valuation per Share plus a return that yields 12% IRR of the
      Performance Adjusted Per Share Price. For the avoidance of doubt, the word
      “transferable” when used in this paragraph 9.3 in relation to Shares of
      the Selling Shareholders shall mean those Shares of the Selling
      Shareholders which are not subject to any disposal restriction under any
      applicable rules or regulations of the Stock
  Exchange.”;

              

      

    

     

    
      
        	
              	
                (C)

              	
                deleting
      the original paragraph 10.1 in schedule 5 – Adjustment of Consideration
      of
      the
      Share Purchase Agreement in its entirety and replacing by the following
      new
      paragraph
      10.1:

              

      

    

     

    
      
        	
              	
                “10.1

              	
                The
      Investor shall have a right to elect, by notice in writing to the Selling
      Shareholders, that the value of the Adjustment Shares, the Further
      Adjustment Shares or the IPO Adjustment Shares (as the case may be) be
      paid in cash to the Investor by the Selling Shareholders in lieu of the
      Selling Shareholders transferring the Adjustment Shares, the Further
      Adjustment Shares or the IPO Adjustment Shares (as the case may
      be).

              

      

    

     

    
      
        	
              	
                (A)

              	
                The
      cash payable upon occurrence of any Adjustment Event pursuant to paragraph
      2 or 3 shall be calculated as
follows:

              

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Cash
      

                                    payment

                                  	= 
      	
                                    the
      number of

                                    Adjustment

                                    Shares
      or

                                    Further

                                    Adjustment

                                    Shares

                                  	
                                    X

                                  	
                                    the
      average closing price of the Company’s Shares quoted by the Hong Kong
      Stock Exchange or any other Stock Exchange where the Company’s Shares are
      traded for the 10 trading days prior to the election by the
      Investor.

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        	
              	
                (B)

              	
                The
      cash payable upon occurrence of an Adjustment Event pursuant to paragraph
      11 shall be calculated as
follows:

              

      

    

     

    
      
        	
                Cash
      payment

              	
                =

              	
                the
      number of IPO

                Adjustment Shares

              	
                X

              	
                IPO
      Price”;

              

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                (D)

              	
                immediately
      following the last sentence of paragraph 10.2 in schedule 5 – Adjustment
      of Consideration of the Share Purchase Agreement, insert the
      following:

              

      

    

     

    “For the
avoidance of doubt, the word “transferable” when used in this paragraph 10.2 in
relation to Shares of the Selling Shareholders shall mean those Shares of the
Selling Shareholders which are not subject to any disposal restriction under any
applicable rules or regulations of the Stock Exchange.”

     

    
      
        	
                2.2

              	
                With
      effect from the date of this Agreement, the rights and obligations of the
      Parties shall be governed by the Share Purchase Agreement as amended by
      this Agreement.

              

      

    

     

    
      	
              3.

            	
              Amendments not to
      Affect Validity, Rights or
  Obligations

            

    

     

    
      	
              3.1

            	
              Continuing
      Provisions

            

    

     

    The
provisions of the Share Purchase Agreement shall, in respect of the period up to
the date of this Agreement, continue in full force and effect in accordance with
their terms.

     

    
      	
              3.2

            	
              No
      Prejudice or Discharge

            

    

     

    Nothing
in this Agreement:

     

    
      
        	
              	
                (A)

              	
                prejudices
      or adversely affects any right, power, authority, discretion or remedy
      arising under the Share Purchase Agreement before the date of this
      Agreement; or

              

      

    

     

    
      
        	
              	
                (B)

              	
                discharges,
      releases or otherwise affects any liability or obligation arising under
      the Share Purchase Agreement before the date of this
      Agreement.

              

      

    

     

    
      	
              4.

            	
              General

            

    

     

    
      
        	
                4.1

              	
                The
      terms of clauses 13.2, 13.5, 13.7 and 13.8 of the Share Purchase Agreement
      shall be incorporated into this Agreement and have effect in full as if
      set out in this Agreement and as if references therein to “this Agreement”
      are references to this Agreement and such other changes as are
      necessary.

              

      

    

    

    
      	
              5.

            	
              Law and
      jurisdiction

            

    

     

    
      
        	
                5.1

              	
                The
      terms of clause 15 of the Share Purchase Agreement shall be incorporated
      into this Agreement and have effect in full as if set out in this
      Agreement and as if references therein to “this Agreement” are references
      to this Agreement and such other changes as are
  necessary.

              

      

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    AS
WITNESS the
hands of the Parties or their duly authorised representatives the day and year
first above written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  SIGNED
      by MR LIN
      SHUIPAN

                                	
                                  )

                                	
	 	 	 
	
                                  SIGNED
      by Dr Kenry Shi

                                  duly
      authorised for and on

                                  behalf
      of RICHWISE
      INTERNATIONAL

                                  INVESTMENT
      GROUP LIMITED

                                   

                                   

                                	
                                  )

                                  )

                                  )

                                  )

                                   

                                   

                                	
	 
      	 
      	 
      
	
                                  SIGNED
      by DR. KENRY
      SHI

                                	
                                  )

                                	  
	 
      	 
      	 
      
	
                                  SIGNED
      by Mr Kevin Zhang

                                  duly
      authorised for and on

                                  behalf
      of the ELEVATECH
      LIMITED

                                	
                                  )

                                  )

                                  )

                                	 
      
	 
      	 
      	 
      
	
                                  SIGNED
      by Mr Lin Shuipan

                                  duly
      authorised for and on

                                  behalf
      of XDLONG
      INTERNATIONAL

                                  COMPANY
      LIMITED

                                	
                                  )

                                  )

                                  )

                                	

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    AS
WITNESS the
hands of the Parties or their duly authorised representatives the day and year
first above written.

    
 

    
      
        
          
            
              
                	
                        SIGNED
      by MR LIN
      SHUIPAN

                      	
                        )

                      	 
      
	 	 	 
	 
      	 
      	 
      
	
                        SIGNED
      by Dr Kenry Shi

                        duly
      authorised for and on

                        behalf
      of RICHWISE
      INTERNATIONAL

                        INVESTMENT
      GROUP LIMITED

                      	
                        )

                        )

                        )

                        )

                      	 
      
	 	 	 
	 
      	 
      	 
      
	
                        SIGNED
      by DR. KENRY
      SHI

                      	
                        )

                      	 
      
	 	 	 
	 
      	 
      	 
      
	
                        SIGNED
      by Mr Kevin Zhang

                        duly
      authorised for and on

                        behalf
      of the ELEVATECH
      LIMITED

                      	
                        )

                        )

                        )

                      	  
	 	 	 
	 
      	 
      	 
      
	
                        SIGNED
      by Mr Lin Shuipan

                        duly
      authorised for and on

                        behalf
      of XDLONG
      INTERNATIONAL

                        COMPANY
      LIMITED

                      	
                        )

                        )

                        )

                      	 
      

              

            

          

        

      

    

     

    
      
        
        

      

      
        4

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