Document:

EX-10.168

Exhibit 10.168

TERMINATION AND RELEASE AGREEMENT

     This TERMINATION AND RELEASE AGREEMENT (this “Agreement”) is made as of December 8, 2008 by
and between Focus Media Holding Limited, a company with limited liability organized under the laws
of the Cayman Islands (“Buyer”); CGEN Digital Media Company Limited, a company with limited
liability organized under the laws of the Cayman Islands (the “Company”); Mr. Yising Chan (the
“Sellers’ Representative”) in his capacity as representative of certain former shareholders of the
Company as set forth on Schedule I hereto (collectively, the “Selling Shareholders”) and with
regard to Section 3 only, certain former option holders of the Company as set forth on Schedule II
hereto (collectively, the “Option Holders” and together with the Selling Shareholders, the
“Holders”); Mr. Yising Chan in his individual capacity; Mr. Guanyong Tian and Mr. Mei Lijun
(Messrs. Chan, Tian and Mei collectively, the “Management Parties”). Each of the above parties is
sometimes referred to herein individually as a “Party” and collectively as the “Parties.”
Capitalized terms used but not otherwise defined herein shall have the meanings given them in the
Purchase Agreement (as defined below).

RECITALS

     WHEREAS, Buyer, the Company, the Selling Shareholders and the Management Parties are parties
to that certain Share Purchase Agreement dated as of December 8, 2007 (the “Purchase Agreement”);

     WHEREAS, the First Closing took place on January 2, 2008 pursuant to Section 2.3 of the
Purchase Agreement and the Company has become a wholly owned subsidiary of Buyer;

     WHEREAS, Buyer entered into the Key Employee Service Agreements with the Management Parties on
the First Closing Date in connection with the First Closing;

     WHEREAS, Buyer and the Holders entered into the Registration Rights Agreement on the First
Closing Date in connection with the First Closing;

     WHEREAS, the Second Closing and Third Closing contemplated in the Purchase Agreement have not
taken place;

     WHEREAS, Section 2.2(b) (ii) of the Purchase Agreement provides that if the 2008 Audited
Annual Net Income is less than US$9,625,000, Buyer shall have the right to terminate the Management
Parties and terminate the Purchase Agreement immediately with no further responsibility for any
payment with respect to the Second Installment Consideration, the Third Installment Consideration,
the Base Catchup Amount or the Adjusted Catchup Amount;

     WHEREAS, the Parties agree and acknowledge that, based on the Company’s management accounts
covering the period from January 1 2008 through October 31 2008, which accounts are

 

 

attached hereto as Schedule III (the “Management Accounts”) as prepared by the Management
Parties, the 2008 Audited Annual Net Income will be significantly less than US$9,625,000 and wish
to terminate the Purchase Agreement, the Key Employee Service Agreement and Registration Rights
Agreement immediately.

     and

     WHEREAS, pursuant to Section 2.9 of the Purchase Agreement, the Selling Shareholders appointed
Mr. Yising Chan as the Selling Shareholder’s attorney-in-fact and representative, to amend, cancel
or extend, or waive the terms of, the Purchase Agreement and any of the Ancillary Documents in a
manner that would not disproportionately affect such Selling Shareholder as compared to the other
Selling Shareholders.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises set forth in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties agree as follows:

          1. Termination of Purchase Agreement. Except as provided in this Agreement, the
Parties hereby terminate the Purchase Agreement, effective immediately, and the Parties shall have
no further rights, obligations or responsibilities under the Purchase Agreement including, without
limitation, with respect to (i) Buyer’s responsibility for any payment with respect to the Second
Installment Consideration, the Third Installment Consideration, the Base Catchup Amount, and (ii)
each of the covenants and agreements set forth in Article VI of the Purchase Agreement.

          2. Termination of Key Employee Service Agreements. Buyer and each of the Management
Parties hereby terminate their respective Key Employee Service Agreements and the employment of the
Management Parties with Buyer is hereby terminated; provided, however, that, notwithstanding the
foregoing, each of Section 6 (Responsibilities of Termination), Section 7 (Post-termination
Activities), Section 8 (Proprietary Information), Section 12.7 (Notice), Section 12.8
(Severability; Enforceability), Section 12.9 (Governing Law), Section 12.10 (Dispute Resolution)
and Section 12.11 (Survival) of each such Key Employee Service Agreement shall survive such
termination and remain effective in accordance with its terms; provided further, however, that the
parties hereto agree that Section 7.2 (a) of each of the Key Employee Service Agreement shall be
amended and restated in its entirety to read as follows: “Within two (2) years after the expiration
or termination of this Agreement, the Key Employee shall not, directly or indirectly, be engaged in
any business providing in-store advertising through the use of flat-panel displays in hypermarkets,
supermarkets, home improvement stores and other retail or entertainment venues in any place
throughout China; provided, however, that the Key Employee may hold up to five percent of the
outstanding voting securities of any entity that is listed at a stock exchange and engaged in the
said business, to the extent that the Key Employee has no other relation or association with such
entity.”

          3. Termination of Registration Rights Agreement. The Parties agree and acknowledge
that no CGEN Registrable Securities (as defined in the Registration Rights Agreement) have been or

 

 

 will be issued to the Holders in connection with the Purchase Agreement and the Registration
Rights Agreement is therefore moot. Buyer and the Holders (via Sellers’ Representative) hereby
terminate the Registration Rights Agreement effective immediately and acknowledge and agree that
they shall have no further rights, obligations or responsibilities thereunder.

          4. Waiver and Release. Each Party, on its own behalf, and on behalf of its heirs,
family members, executors, agents, members, limited partners, shareholders, affiliates, employees,
officers, directors, successors and assigns, hereby fully and forever releases the other Parties
and their respective current and former officers, directors, employees, agents, attorneys,
trustees, shareholders, investors, stockholders, administrators, affiliates, divisions,
subsidiaries, predecessor and successor corporations and assigns, and agrees not to sue concerning,
or in any manner to institute, prosecute, or pursue, any and all claims, duties, charges,
complaints, obligations or causes of action relating to the declaration and/or payment of any
dividend paid pursuant to the Purchase Agreement and the terminated provisions of the Purchase
Agreement, the Key Employee Service Agreements and the Registration Rights Agreement, whether
presently known or unknown, suspected or unsuspected, that such Party may possess arising from any
and all omissions, acts, facts or damages that have occurred up until and including the date of
this Agreement with respect to the declaration and payment of any dividend paid pursuant to the
Purchase Agreement, the terminated provisions of the Purchase Agreement, the Key Employee Service
Agreement and Registration Rights Agreement (the “Waiver and Release”). Each Party agrees that the
Waiver and Release shall be and remain in effect in all respects as a complete general release as
to the matters released. This Waiver and Release does not extend to any obligations incurred under
this Agreement.

          5. Release of Unknown Claims. Each of the Parties acknowledges that it has been
advised to consult with legal counsel and is familiar with any applicable law that may otherwise
prohibit the release of unknown claims and hereby expressly waives any such rights such Party may
have thereunder.

          6. Miscellaneous. The rights and obligations under this Agreement shall not be
assignable by any Party without the consent of the other Parties. This Agreement shall be
governed, construed and interpreted in accordance with the laws of the State of New York, United
States without giving effect to principles of conflicts of law that would direct the application of
laws other than the laws of the State of New York. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which together shall constitute
one instrument. Any term of this Agreement may be amended or waived only with the written consent
of the Parties.

(Remainder of Page Intentionally Left Blank)

 

 

     IN WITNESS WHEREOF, the undersigned have executed this Termination and Release Agreement as of
the date first set forth above.

	 	 	 	 	 
	 	FOCUS MEDIA HOLDING LIMITED

 	 
	 	By:  	/s/ Jiang Nanchun
 	 
	 	Name: Jiang Nanchun 	 
	 	Title: Chairman 	 
	 
	 
	 	CGEN DIGITAL MEDIA COMPANY LIMITED

 	 
	 	By:  	/s/ Yi Sing Chan
 	 
	 	Name: Yi Sing Chan 	 
	 	Title: Director 	 
	 
	 
	 	CHAN YI SING

(in his capacity as Sellers’ Representative)

 	 
	 	/s/ Chan Yi Sing
 	 

Signature Page to Termination and Release Agreement

 

 

     IN WITNESS WHEREOF, the undersigned have executed this Termination and Release Agreement as of
the date first set forth above.

	 	 	 	 	 
	 	“MANAGEMENT PARTIES”

CHAN YI SING

 	 
	 	/s/ Chan Yi Sing
 	 
	 	 	 
	 	 	 
	 
	 	GUANYONG TIAN

 	 
	 	/s/ Guanyong Tian
 	 
	 	 	 
	 	 	 
	 
	 	MEI LIJUN

 	 
	 	/s/ Mei Lijun
 	 

Signature Page to Termination and Release Agreement

 

 

Schedule I

Selling Shareholders

 

 

Schedule II

Option Holders

 

 

Schedule III

Management AccountsEX-10.169

Exhibit 10.169

EQUITY PLEDGE AGREEMENT

AMONG

SHANGHAI OOH ADVERTISING CO., LTD

LIU YI NUO

AND

SHANGHAI CHUANZHI ADVERTISEMENT COMPANY LTD

DATED AS OF

April 28 2007

 

 

EQUITY PLEDGE AGREEMENT

This Equity Pledge Agreement (the “Agreement”) is entered into in Shanghai of the People’s Republic
of China (hereinafter “PRC”) as of April 28 2007 by and among the following Parties:

	(1)	 	Shanghai OOH Advertising Co., Ltd, (the “Pledgee”) a limited liability company, wholly owned
by legal person of Taiwan, Hong Kong or Macao, incorporated and validly existing in Shanghai,
PRC under PRC laws
	 
	(2)	 	Liu Yi Nuo (the “Pledgor”), a PRC citizen with ID card number 350102440827037
	 
	(3)	 	Shanghai Chuanzhi Advertisement Co., Ltd (“Shanghai Chuanzhi”), a limited liability company
incorporated and validly existing in Shanghai, PRC under PRC laws, with its registered address
at Unit 2329, Building 19, 266 Changjiang Street, Changjiang Farm, Chongming District,
Shanghai.

(The above parties hereinafter shall be individually referred to as a “Party” and collectively
referred to as the “Parties”. )

Whereas,

	(1)	 	As of the date of the Agreement, the Pledgor is the enrolled shareholder of Shanghai
Chuanzhi, legally holding 20% equity of Shanghai Chuanzhi
	 
	(2)	 	Pursuant to the Shareholders’ Voting Rights Proxy Agreement dated as of April 28, 2007 among
the Pledgee, the Pledgor and Shanghai Chuanzhi (the “Proxy Agreement”), Pledgor has already
entrusted Shanghai OOH with full power to exercise on his behalf all of his shareholder’s
voting rights in Shanghai Chuanzhi, and Pledgor undertakes to cause all current directors of
board of Shanghai Chuanzhi appointed by him to entrust respectively persons designated by
Shanghai OOH to exercise on their behalves relevant rights enjoyed by directors of board.
	 
	(3)	 	As security for performance by Pledgor of the Contract Obligations (as defined below) and
repayment of the Guaranteed Liabilities (as defined below), Pledgor agrees to pledge all of
his Shanghai Chuanzhi equity to the Pledgee and grant the Pledgee right to request for
repayment on first priority and Shanghai Chuanzhi agrees such equity pledge arrangement.

The Parties hereby have reached the following agreement upon friendly consultations:

Article 1 Definition

	1.1	 	Unless otherwise construed in the context, the following terms in the Agreement shall be
interpreted to have the following meanings:

	 	 	 	 	 
	 

	 	“Contract Obligations”:
	 	shall mean all contractual obligations of the Pledgor under the
Proxy Agreement; all contractual obligations of Shanghai Chuanzhi under Proxy
Agreement; and all contractual obligations of the Pledgor under this Agreement.
	 
	 	 	 	 
	 

	 	“Guaranteed Liabilities”:
	 	shall mean all direct, indirect and consequential losses and
losses of foreseeable profits suffered by Pledgee due to any Event of Default (as
defined below) by the Pledgor and/or Shanghai Chuanzhi, and all fees incurred by
Pledgee for the enforcement of the Contractual Obligations of the Pledgor

	Equity Pledge Agreement	1	 

 

	 	 	 	 	 
	 

	 	 	 	and/or Shanghai Chuanzhi.
	 
	 	 	 	 
	 

	 	“Transaction Agreements”
	 	shall mean the Proxy Agreement.
	 
	 	 	 	 
	 

	 	“Event of Default”
	 	shall mean any breach by Pledgor of its Contract Obligations under the
Proxy Agreement and/or this Agreement; any breach by Shanghai Chuanzhi of its
Contract Obligations under the Proxy Agreement and/or this Agreement.
	 
	 	 	 	 
	 

	 	“Pledged Property”
	 	shall mean all equity interest in Shanghai Chuanzhi which is legally
owned by the Pledgor as of the effective date hereof and is to be pledged by the
Pledgor to the Pledgee according to provisions hereof as security for performance of
the Pledgor and Shanghai Chuanzhi of their Contractual Obligations, and any
increased capital contribution and equity interest described in Articles 2.6 and 2.7
hereof.
	 
	 	 	 	 
	 

	 	“PRC Law”
	 	shall mean the then valid laws, administrative regulations,
administrative rules, local regulations, judicial interpretations and other binding
regulatory documents of the People’s Republic of China.

	1.2	 	The references to any PRC Law herein shall be deemed (1) to include any references to the
amendments, changes, supplements and reenactments of such law, irrespective of whether they
take effect before or after the formation of this Agreement; and (2) to include any references
to other decisions, notices or regulations enacted in accordance therewith or effective as a
result thereof.
	 
	1.3	 	Unless otherwise stated in the context herein, all references to an Article, clause, item or
paragraph shall refer to the relevant part of this Agreement.

Article 2 Equity Pledge

	2.1	 	Pledgor hereby agrees to pledge the Pledged Property, which he legally owns and has the right
to dispose of, to Pledgee according to the provisions hereof as the security for the
performance of the Contract Obligations and the repayment of the Guaranteed Liabilities.
Shanghai Chuanzhi hereby agrees that the Pledgor who legally holds equity interest in it to
pledge the Pledged Property to the Pledgee according to the provisions hereof.
	 
	2.2	 	Pledgor hereby undertakes that he will be responsible for, recording the arrangement of the
equity pledge hereunder (hereinafter, the “Equity Pledge”) on the shareholder register of
Shanghai Chuanzhi on the date hereof, and will do his best endeavor to make registration with
registration authorities of industry and commerce where Shanghai Chuanzhi registers. Shanghai
Chuanzhi undertakes that it will do its best to cooperate with the Pledgor to complete the
registration with authorities of industry and commerce under this Article.
	 
	2.3	 	During the valid term of this Agreement, except for the willful misconduct or gross
negligence of Pledgee which has direct cause and effect relationship with the reduction in
value of the Pledged Property, Pledgee shall not be liable in any way to, nor shall Pledgor
have any right to claim in any way or propose any demands on Pledgee, in respect of the said
reduction in value of the Pledged Property.
	 
	2.4	 	To the extent not violating provision of Article 2.3 above, in case of any possibility of
obvious reduction in value of the Pledged Property which is sufficient to jeopardize Pledgee’s
rights,

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	 	 	Pledgee may request Pledgor to provide additional security and in case where Pledgor
refuses to provide such additional security, Pledgee may at any time auction or sell off
the Pledged Property on behalf of Pledgor, and discuss with Pledgor to use the proceeds
from such auction or sale-off as pre-repayment of the Guaranteed Liabilities, or may
submit such proceeds to the local notary institution to keep where Pledgee are domiciled
(any fees incurred in relation thereto shall be borne by Pledgor).
	 
	2.5	 	The Pledgee as Pledgee shall be deemed to have created the encumbrance of first order in
priority on the Pledged Property, and in case of any Event of Default, Pledgee shall have the
right to dispose of the Pledged Property in the way set out in Article 4 hereof.
	 
	2.6	 	Only upon prior consent by Pledgee, Pledgor may increase his capital contribution to Shanghai
Chuanzhi. Further capital contribution made by Pledgor in Shanghai Chuanzhi shall also be part
of the Pledged Property.
	 
	2.7	 	Only upon prior consent by Pledgee, Pledgor may be able to receive dividends or share profits
from the Pledged Property. The dividends or the profits received by Pledgor from the Pledged
Property shall be deposited into a bank account designated by Pledgee to be under the
supervision of Pledgee and used as the Pledged Property to repay in priority the Guaranteed
Liabilities.

Article 3 Release of Pledge

In respect of equity interest of Shanghai Chuanzhi, upon full and complete performance by Pledgor
of all of his Contract Obligations and upon the full repayment by Pledgor of all the Guaranteed
Liabilities (if any), the Pledgee shall, at the request of Pledgor, release the pledge created on
Shanghai Chuanzhi under this Agreement, and shall cooperate with Pledgor to go through the
formalities to cancel the record of the Equity Pledge in the shareholder register of Shanghai
Chuanzhi; in case of the Equity Pledge having been recorded at the registration department of
Administration of Industry and Commerce where Shanghai Chuanzhi registers, the relevant Parties
shall cooperate with each other to go through the formalities to cancel such record of the Equity
Pledge. The reasonable fees incurred in connection with such release shall be borne by Pledgee.

Article 4 Disposal of the Pledged Property

	4.1	 	Pledgor, Shanghai Chuanzhi and Pledgee hereby agree that, in case of any Event of Default,
the Pledgee shall have the right to exercise, upon giving written notice to Pledgor, all of
the remedial rights and powers enjoyable by it under PRC Law, Transaction Agreements and the
terms hereof, including but not limited to being repaid in priority with proceeds from
auctions or sale-offs of the Pledged Property. Pledgee shall not be liable for any loss as the
result of its reasonable exercise of such rights and powers.
	 
	4.2	 	Pledgee shall have the right to designate in writing his legal counsel or other agents to
exercise on its behalf any and all rights and powers set out above, and neither Pledgor nor
Shanghai Chuanzhi shall not oppose thereto.
	 
	4.3	 	The reasonable costs incurred by Pledgee in connection with exercise of any and all rights
and powers set out above shall be borne by Pledgor, and Pledgee shall have the right to deduct
such costs actually incurred from the proceeds acquired from the exercise of the rights and
powers.
	 
	4.4	 	The proceeds that Pledgee acquires from the exercise of its rights and powers shall be used
in the priority order as follows:

3

 

	 	 	Firstly, to pay any cost incurred in connection with the disposal of the Pledged Property
and the exercise by Pledgee of his rights and powers (including remuneration paid to its
respective legal counsels and agents);
	 
	 	 	Secondly, to pay any taxes and levies payable for the disposal of the Pledged Property;
and
	 
	 	 	Thirdly, to repay Pledgee for the Guaranteed Liabilities.
	 
	 	 	In case of any balance after payment of the above amounts, Pledgee shall return it
to Pledgor or other persons entitled thereto according to the relevant laws and rules or
submit it to the local notary institution for keeping where Pledgee is domiciled (any
fees incurred in relation thereto shall be borne by Pledgor).
	 
	4.5	 	Pledgee shall have the option to exercise, simultaneously or in certain sequence, any of the
remedies at breaching that it is entitled to in respect of the equity interest of Shanghai
Chuanzhi held by Pledgor. Pledgee shall not be obliged to exercise any other remedies at
breaching before exercise of the right to the auctions or sale-offs of the Pledged Property
hereunder. Pledgor or Shanghai Chuanzhi shall not oppose to whether Pledgee exercises any part
of the right to the pledge or the sequence of exercising the pledge interest.

Article 5 Fees and Costs

All costs actually incurred in connection with the establishment of the Equity Pledge hereunder,
including but not limited to stamp duties, any other taxes, all legal fees, etc shall be borne by
the Pledgee.

Article 6 Continuity and No Waive

The Equity Pledge hereunder is a continuous guarantee, with its validity to continue until the full
performance of the Contract Obligations or the full repayment of the Guaranteed Liabilities.
Neither exemption or grace period granted by Pledgee to Pledgor in respect of his breach, nor delay
by Pledgee in exercising any of its rights under the Transaction Agreements and this Agreement
shall affect the rights of Pledgee under this Agreement, relevant PRC Law and the Transaction
Agreements, the rights of Pledgee to demand at any time thereafter the strict performance of the
Transaction Agreements and this Agreement by Pledgor or the rights Pledgee may be entitled to due
to subsequent breach by Pledgor of the obligations under the Transaction Agreements and/or this
Agreement.

Article 7 Representations and Warranties by Pledgor

Pledgor hereby, in respect of himself and Shanghai Chuanzhi in which he holds equity interest,
represents and warrants to Pledgee as follows:

	7.1	 	he has full and independent legal status and legal capacity to execute, deliver and perform
this Agreement with due authorization, and is capable to act independently as a subject of
legal actions.
	 
	7.2	 	Shanghai Chuanzhi in which the Pledgor holds equity interest is a limited liability
corporation duly incorporated and validly existing under PRC Law, it has independent status as
a legal person. It has full and independent legal status and capacity to execute, deliver and
perform this Agreement and can independently be a subject of actions. It has full right and
authorization to execute and deliver this Agreement and other documents relating to the
transaction as stipulated in this Agreement and to be executed by them. It also has full right
and authorization to complete the transaction stipulated in this Agreement.
	 
	7.3	 	All reports, documents and information concerning Pledgor and all matters as required by this

4

 

	 	 	Agreement which are provided by Pledgor to Pledgee before this Agreement comes into
effect are true, correct and effective in all material aspects as of the effectiveness
hereof.
	 
	7.4	 	All reports, documents and information concerning Pledgor and all matters as required by this
Agreement which are provided by Pledgor to Pledgee after this Agreement comes into effect are
true, correct and effective in all material aspects as of the time when such reports,
documents and information are provided.
	 
	7.5	 	At the time of the effectiveness of this Agreement, Pledgor is the sole legal owner of the
Pledged Property, with no existing dispute whatsoever concerning the ownership of the Pledged
Property. Pledgor has the right to dispose of the Pledged Property or any part thereof.
	 
	7.6	 	Except for the encumbrance set on the Pledged Property hereunder and the rights set under the
Transaction Agreements, there is no other encumbrance or third party interest set on the
Pledged Property.
	 
	7.7	 	The Pledged Property is capable of being pledged or transferred according to the laws, and
Pledgor has the full right and power to pledge the Pledged Property to Pledgee according to
this Agreement.
	 
	7.8	 	This Agreement constitutes the legal, valid and binding obligations on Pledgor when it is
duly executed by Pledgor.
	 
	7.9	 	Any consent, permission, waive or authorization by any third person, or any approval,
permission or exemption by any government authority, or any registration or filing formalities
(if required by laws) with any government authority to be handled or obtained in respect of
the execution and performance hereof and the Equity Pledge hereunder have already been handled
or obtained, and will be fully effective during the valid term of this Agreement.
	 
	7.10	 	The execution and performance by Pledgor of this Agreement are not in violation of or
conflict with any laws applicable to him, or any agreement to which he is a party or which has
binding effect on his assets, any court judgment, any arbitration award, or any administration
authority decision.
	 
	7.11	 	The pledge hereunder constitutes the encumbrance of first order in priority on the Pledged
Property.
	 
	7.12	 	All taxes and fees payable in connection with acquisition of the Pledged Property have
already been paid in full amount by Pledgor.
	 
	7.13	 	There is no pending or, to the knowledge of Pledgor, threatened litigation, legal process or
demand by any court or any arbitral tribunal against Pledgor, or his property, or the Pledged
Property, nor is there any pending or, to the knowledge of Pledgor, threatened litigation,
legal process or demand by any government authority or any administration authority against
Pledgor, or his property, or the Pledged Property, which is of material or detrimental effect
on the economic status of Pledgor or his capability to perform the obligations hereunder and
the Guaranteed Liabilities.
	 
	7.14	 	Pledgor hereby warrants to Pledgee that the above representations and warranties will remain
true, correct and effective at any time and under any circumstance before the Contractual
Obligations are fully performed or the Guaranteed Liabilities are fully repaid, and will be
fully complied with.

Article 8 Representations and Warranties by Shanghai Chuanzhi

5

 

Shanghai Chuanzhi hereby represents and warrants to Pledgee as follows:

	8.1	 	Shanghai Chuanzhi is a limited liability corporation duly incorporated and validly existing
under PRC Law, with full capacity of disposition and has obtained due authorization to
execute, deliver and perform this Agreement and can independently be a subject of actions.
	 
	8.2	 	All reports, documents and information concerning Pledged Property and all matters as
required by this Agreement which are provided by Shanghai Chuanzhi to Pledgee before this
Agreement comes into effect are true, correct and effective in all material aspects as of the
execution hereof
	 
	8.3	 	All reports, documents and information concerning Pledged Property and all matters as
required by this Agreement which are provided by Shanghai Chuanzhi to Pledgee after this
Agreement comes into effect are true, correct and effective in all material aspects upon
provision.
	 
	8.4	 	This Agreement constitutes the legal, valid and binding obligations on Shanghai Chuanzhi when
it is duly executed by Shanghai Chuanzhi.
	 
	8.5	 	It has full right and authorization to execute and deliver this Agreement and other documents
relating to the transaction as stipulated in this Agreement and to be executed by them. It
also has full right and authorization to complete the transaction stipulated in this
Agreement.
	 
	8.6	 	There is no pending or, to the knowledge of Shanghai Chuanzhi, threatened litigation, legal
process or demand by any court or any arbitral tribunal against Shanghai Chuanzhi, or its
property (including but are not limited to the Pledged Property), nor is there any pending or,
to the knowledge of Shanghai Chuanzhi, threatened litigation, legal process or demand by any
government authority or any administration authority against Shanghai Chuanzhi, or its
property (including but are not limited to the Pledged Property), which is of material or
detrimental effect on the economic status of Shanghai Chuanzhi or its capability to perform
the obligations hereunder and the Guaranteed Liabilities.
	 
	8.7	 	Shanghai Chuanzhi hereby agrees to bear joint responsibilities to Pledgee in respect of the
representations and Warranties made by Pledgor under Article 7.5, Article 7.6, Article 7.7,
Article 7.9 and Article 7.11 hereof.
	 
	8.8	 	Shanghai Chuanzhi hereby warrants to Pledgee that the above representations and warranties
will remain true, correct and effective at any time and under any circumstance before the
Contractual Obligations are fully performed or the Guaranteed Liabilities are fully repaid,
and will be fully complied with.

Article 9 Undertakings by Pledgor

Pledgor hereby undertakes to Pledgee in respect of himself and Shanghai Chuanzhi of which he holds
equity as follows:

	9.1	 	Without prior written consent by Pledgee, Pledgor shall not establish or permit to establish
any new pledge or any other encumbrance on the Pledged Property.
	 
	9.2	 	Without first giving written notice to Pledgee and having Pledgee’s prior written consent,
Pledgor shall not transfer the Pledged Property, and any attempt by Pledgor to transfer the
Pledged Property shall be null and void. The proceeds from transfer of the Pledged Property by
Pledgor shall be used to repay to Pledgee in advance the Guaranteed Liabilities or submit the
same to the third party agreed with Pledgee.

6

 

	9.3	 	In case of any litigation, arbitration or other demand which may affect detrimentally the
interest of Pledgor or Pledgee under the Transaction Agreements and hereunder or the Pledged
Property, Pledgor undertakes to notify Pledgee in writing as soon as possible and promptly and
shall take, at the reasonable request of Pledgee, all necessary measures to ensure the pledge
interest of Pledgee in the Pledged Property.
	 
	9.4	 	Pledgor shall not carry on or permit any act or action which may affect detrimentally the
interest of Pledgee under the Transaction Agreements and hereunder or the Pledged Property.
	 
	9.5	 	Pledgor guarantees that he shall, at the reasonable request of Pledgee, take all necessary
measures and execute all necessary documents (including but not limited to supplementary
agreement hereof) in respect of ensuring the pledge interest of Pledgee in the Pledged
Property and the exercise and realization of the rights thereof
	 
	9.6	 	In case of assignment of any Pledged Property as the result of the exercise of the right to
pledge hereunder, Pledgor guarantees that he will take all necessary measures to realize such
assignment.

Article 10 — Undertakings by Shanghai Chuanzhi

	10.1	 	Any consent, permission, waive or authorization by any third person, or any approval,
permission or exemption by any government authority, or any registration or filing formalities
(if required by laws) with any government authority to be handled or obtained in respect of
the execution and performance hereof and the Equity Pledge hereunder will be cooperated to
handle or obtain by Shanghai Chuanzhi to its best and will be ensured to remain full effective
during the valid term of this Agreement.
	 
	10.2	 	Without the prior written consent by Pledgee, Shanghai Chuanzhi shall not cooperate to
establish or permit to establish any new pledge or any other encumbrance on the Pledged
Property.
	 
	10.3	 	Without having Pledgee’s prior written consent, Shanghai Chuanzhi shall not cooperate to
transfer or permit to transfer the Pledged Property
	 
	10.4	 	In case of any litigation, arbitration or other demand which may affect detrimentally
Shanghai Chuanzhi, the equity of Shanghai Chuanzhi as the Pledged Property or the interest of
Pledgee under the Transaction Agreements and hereunder, Shanghai Chuanzhi undertakes to notify
Pledgee in writing as soon as possible and promptly and shall take, at the reasonable request
of Pledgee, all necessary measures to ensure the pledge interest of Pledgee in the Pledged
Property.
	 
	10.5	 	Shanghai Chuanzhi shall not carry on or permit any act or action which may affect
detrimentally the interest of Pledgee under the Transaction Agreements and hereunder or the
Pledged Property.
	 
	10.6	 	Shanghai Chuanzhi shall provide Pledgee with the financial statement of the last calendar
season within the first month of each calendar season, including but are not limited to the
balance sheet, the income statement and the statement of cash flow.
	 
	10.7	 	Shanghai Chuanzhi guarantees that it shall, at the reasonable request of Pledgee, take all
necessary measures and execute all necessary documents (including but not limited to
supplementary agreement hereof) in respect of ensuring the pledge interest of Pledgee in the
Pledged Property and the exercise and realization of the rights thereof.

7

 

	10.8	 	In case of assignment of any Pledged Property as the result of the exercise of the right to
the pledge hereunder, Shanghai Chuanzhi guarantees that it will take all necessary measures to
realize such assignment.

Article 11 Change of Circumstances

As supplement and subject to compliance with other terms of the Transaction Agreements and this
Agreement, in case that at any time the promulgation or change of any PRC Law, regulations or
rules, or change in interpretation or application of such laws, regulations and rules, or the
change of the relevant registration procedures enables Pledgee to believe that it will be illegal
or in conflict with such laws, regulations or rules to further maintain the effectiveness of this
Agreement and/or dispose of the Pledged Property in the way provided herein, Pledgor and Shanghai
Chuanzhi shall, at the written direction of Pledgee and in accordance with the reasonable request
of Pledgee, promptly take actions and/or execute any agreement or other document, in order to:

	 	(1)	 	keep this Agreement remain in effect;
	 
	 	(2)	 	facilitate the disposal of the Pledged Property in the way provided herein; and/or
	 
	 	(3)	 	maintain or realize the intention or the guarantee established hereunder.

Article 12 Effectiveness and Term of This Agreement

	12.1	 	This Agreement shall become effective when this Agreement is duly executed by Pledgee,
Shanghai Chuanzhi and Pledgor.
	 
	12.2	 	This Agreement shall have its valid term until the full performance of the Contract
Obligations or the full repayment of the Guaranteed Liabilities.

Article 13 Notice

	13.1	 	Any notice, request, demand and other correspondences made as required by or in accordance
with this Agreement shall be made in writing and delivered to the relevant Party.
	 
	13.2	 	The abovementioned notice or other correspondences shall be deemed to have been delivered
when it is transmitted if transmitted by facsimile; it shall be deemed to have been delivered
when it is delivered if received in person; it shall be deemed to have been delivered five (5)
days after posting the same if posted by mail.

Article 14 Miscellaneous

	14.1	 	Pledgee may, upon notice to Pledgor and Shanghai Chuanzhi but not necessarily with Pledgor
and Shanghai Chuanzhi’s consent, assign Pledgee’s rights and/or obligations hereunder to any
third party; provided that Pledgor or Shanghai Chuanzhi can not, without Pledgee’s prior
written consent, assign Pledgor’ rights, obligations and/or liabilities hereunder to any third
party. Successors or permitted assignees (if any) of Pledgor and Shanghai Chuanzhi shall
continue to perform respective obligations of Pledgor and Shanghai Chuanzhi under this
Agreement.

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	14.2	 	This Agreement shall be prepared in the Chinese language in four (4) original copies, with
each involved Party holding one (1) copy hereof and one (1) copy for registration of Equity
Pledge with industry and commerce administration.
	 
	14.3	 	The formation, validity, execution, amendment, interpretation and termination of this
Agreement shall be governed by PRC Law.
	 
	14.4	 	Any disputes arising hereunder and in connection herewith shall be settled through
consultations among the Parties, and if the Parties cannot reach an agreement regarding such
disputes within thirty (30) days of their occurrence, such disputes shall be submitted to
China International Economic and Trade Arbitration Commission for arbitration in Shanghai in
accordance with the arbitration rules of such Commission, and the arbitration award shall be
final and binding on all disputing Parties.
	 
	14.5	 	Any rights, powers and remedies empowered to any Party by any provisions herein shall not
preclude any other rights, powers and remedies enjoyed by such Party in accordance with laws
and other provisions under this Agreement, and the exercise of its rights, powers and remedies
by a Party shall not preclude its exercise of its other rights, powers and remedies by such
Party.
	 
	14.6	 	Any failure or delay by a Party in exercising any of its rights, powers and remedies
hereunder or in accordance with laws (hereinafter, the “Party’s Rights”) shall not lead to a
waiver of such rights, and the waiver of any single or partial exercise of the Party’s Rights
shall not preclude such Party from exercising such rights in any other way and exercising the
remaining part of the Party’s Rights
	 
	14.7	 	The titles of the Articles contained herein shall be for reference only, and in no
circumstances shall such titles be used in or affect the interpretation of the provisions
hereof.
	 
	14.8	 	Each provision contained herein shall be severable and independent from each of other
provisions, and if at any time any one or more articles herein become invalid, illegal or
unenforceable, the validity, legality or enforceability of the remaining provisions herein
shall not be affected as a result thereof.
	 
	14.9	 	This Agreement shall substitute any other documents on the same subject executed by relevant
Parties hereof once duly executed.
	 
	14.10	 	Any amendments or supplements to this Agreement shall be made in writing. Except for
assignment by Pledgee of its rights hereunder according to Article 14.1 of this Agreement, the
amendments or supplements to this Agreement shall take effect only when properly signed by the
Parties to this Agreement.
	 
	14.11	 	This Agreement shall be binding on the legal successors of Parties.

[The remainder of this page is left blank]

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IN WITNESS HEREOF, the following Parties have caused this Equity Pledge Agreement to be executed as
of the date and in the place first here above mentioned.

	 	 	 	 	 
	Shanghai OOH Advertising Co., Ltd	 	 
	 
	 	 	 	 
	Signature:
	 	 	 	 
	Name:

	 	 

	 	 
	Position:
	 	 	 	 
	 
	 	 	 	 
	Liu Yi Nuo	 	 
	 
	 	 	 	 
	Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Shanghai Chuanzhi Advertisement Co., Ltd	 	 
	 
	 	 	 	 
	Signature:
	 	 	 	 
	Name:

	 	 

	 	 
	Position:
	 	 	 	 

Equity Pledge Agreement Execution Page

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