Document:

exv10w5w4

Exhibit 10.5.4

Supplemental Agreement to the Subscription Agreement

THIS SUPPLEMENTAL AGREEMENT TO THE SUBSCRIPTION AGREEMENT is made in Beijing, the People’s
Republic of China (the PRC), on Feb 9, 2009

Among

Redgate Media Inc. (“Company”), a company incorporated under the laws of Cayman Islands with its
registered office at Scotia Centre, 4th Floor, P.O. Box 2804, George Town, Grand Cayman, Cayman
Islands, British West Indies;

and

Redgate Media AD Co., Ltd (“PRC Redgate”), a company incorporated under the laws of the PRC with
its registered office at B1807, Jianwai SOHO, 39 East 3rd-Ring Road, Chaoyang, Beijing,
China;

and

Lu Xiaoyi (“Subscriber”), citizen of the PRC, whose PRC passport number is G10765870

The Company, PRC Redgate and the Subscriber are collectively referred to as the “Parties” and
individually as a “Party”.

Whereas:

	(a)	 	The Company”), the PRC Redgate and the Subscribe had executed a Subscription Agreement
relating to subscription of some of the share capital of the Company on 8th
October, 2007 (“Subscription Agreement”);
	 
	(b)	 	Section 2.2 (Determination of Consideration)of the Subscription Agreement provides that:

(i) if the IPO occurs on or before 31 December 2008 then the Subscriber shall be entitled
to the following number of Tranche A Shares:

	 	 	 	 	 	 
	X

	 	=
	 	A x C x 40% x D
	 	 

	 	B

Where:

X = the number of the Tranche A Shares

A = the audited net profit of Meiyixinfeng for the year ended 31st December
2007 calculated in accordance with US GAAP. (“Meiyixinfeng 2007 Net Profit”),

 

 

B = the average of the closing price per Share for the ten (10)
trading days after the announcement of Listco’s audited accounts for the
financial year ended 31st December 2008.

C = the average of the daily forward price earnings ratio (P/E) of the Company as shown on
the official website of the stock exchange on which the IPO occurs for the ten trading
days immediately following the IPO .

D = 80%

(ii) if the IPO does not occur on or before 31 December 2008 and the Meiyixinfeng 2007 Net
Profit is more than zero then the Subscriber shall receive the Tranche A Cash Payment as
follows:

7 x A x 40%

Where:

A = the Meiyixinfeng 2007 Net Profit

or, if the Meiyixinfeng 2007 Net Profit is zero or less than zero then the Subscriber
shall receive 8000 USD as the Tranche A Cash Payment:

(iii) if the IPO occurs on or before 31 December 2008 then the Subscriber shall be
entitled to the following number of Tranche B Shares:

	 	 	 	 	 	 
	X

	 	=
	 	A x C x 60% x D
	 	 

	 	B

Where:

X = the number of the Tranche B Shares

A = the net profit of Meiyixinfeng for the year end 31st December 2008
calculated in accordance with US GAAP (“Meiyixinfeng 2008 Net Profit”),

B = the average of the closing price per share of the Company for the ten trading days
after the adoption of the Meiyixinfeng audited accounts for the financial year ended
31st December 2008 .

C = the average of the daily forward price earnings ratio (P/E) of the Company for the ten
trading days after the adoption of the Meiyixinfeng audited accounts for the financial
year ended 31st December 2008 as shown on the official website of the stock
exchange on which the IPO occurs.

D = 80%

 

 

(iv) if the IPO does not occur on or before 31 December 2008 and the Meiyixinfeng 2008
Net Profit is more than zero then the Subscriber shall receive the Tranche B Cash Payment
calculated as

= 7 x A x 60%

Where:

A = the Meiyixinfeng 2008 Net Profit

or, if the Meiyixinfeng 2008 Net Profit is zero or less than zero then the Subscriber
shall receive 12000 USD as the Tranche B Cash Payment:

	(c)	 	Section 2.4 (Conditions to the Tranche A Completion) and Section 2.5 (Conditions to the
Tranche B Completion)of the Subscription Agreement respectively provide the conditions to the
Tranche A Completion and Tranche B Completion of the subscriber’s subscription of some of the
share capital of the Company.
	 
	(d)	 	Substantial changes have been made in the transaction and the Parties now agree upon to amend
the Section 2.2, Section 2.4 and Section 2.5 of the Subscription Agreement.

In consideration of the terms and conditions and the mutual covenant and other good considerations
the receipt of which are hereby confirmed, the parties hereto agree and confirm as follows:

	(1)	 	Given the background as contemplated in the recital, the parties hereto agree to amend the
Section 2.2 of the Subscription Agreement as follows:

Payment for 2007 earning:

The Subscriber shall be entitled to the following number of cash payment:

A x 7 x 32.5%

Where:

A = the audited net profit of Meiyixinfeng for the year ended 31st December
2007 calculated in accordance with US GAAP. (“Meiyixinfeng 2007 Net Profit”).

 

 

Payment for 2008 earning:

The Subscriber shall be entitled to the following amount of payment:

Cash:

(B x 7 x 60% x 97.5%) – (A x 7 x 32.5% x 2.5%)

Share:

(A x 7 x 32.5% x 2.5% + B x 7 x 60% x 2.5%)/C

Where:

B = the net profit of Meiyixinfeng for the year end 31st December 2008
calculated in accordance with US GAAP (“Meiyixinfeng 2008 Net Profit”).

C = Price of Redgate Media share USD 400/share

Payment for 2009 earning:

The Subscriber shall be entitled to the following amount of cash payment:

D x 7 x 7.5%

Where:

D = the net profit of Meiyixinfeng for the year end 31st December 2009
calculated in accordance with US GAAP (“Meiyixinfeng 2009 Net Profit”).

Payment for year 2007 earning should be made in [10 ] business days after 2007 net earning number
is confirmed by auditor and condition precedents completed or exempt by the Company and PRC Redgate
in accordance to the Subscription Agreement. Such payment shall be made by no later than March 31,
2009.

Payment would be made in US Dollar and exchange rate for 2007 payment would be 1 USD = 7.2 RMB.

Payment for lesser of cash balance or retained earnings at Acquisition date will made in USD and
mid point exchange rate on Jan 23, 2009 (1USD = 6.838RMB) should be used for payment.

Payment for year 2008 and year 2009 earning should be made in 15 days after annual audited reported
is issued or announced and condition precedents completed or exempt by the Company and PRC Redgate
in accordance to the Subscription Agreement.

Payment would be made in US Dollar and exchange rate for year 2008 and 2009 will be based Bank of
China mid point exchange rate on 15 July 2009 & 2010 respectively.

 

 

Both Parties should use their best efforts to make sure Breeze’s business integrating into Redgate
smoothly and can continue operating as the way it was for 2007 and 2008 without material
interruption when the 2009 payment is made to the subscriber.

	(2)	 	The parties hereto agree to add one more condition, as follows, into the conditions provided
by Section 2.4 and Section 2.5 of the Subscription Agreement, and the added condition shall
respectively be Section 2.4.(i) and Section 2.5.(g) of the Subscription Agreement:

“As reasonably judged by the Company, the Subscriber has and has caused Meiyixinfeng to
compile Meiyixinfeng’s accounting book and financial report based on US GAAP; the
Subscriber has reported to the Company any information requested by the Company; the
Subscriber has engaged, at its costs and expenses, one of big four international
accountant firms designated by the Company for annual audit.

As reasonably judged by the Company, the Subscriber has used all reasonable endeavors to
assist Listco in its application for an IPO, including providing all information relating
to Meiyixinfeng or himself that is necessary for the inclusion in the prospectus of Listco
for the purpose of the IPO or as may be required to be provided to the relevant stock
exchange and governmental agency or authority, signing and executing all necessary
undertakings and documents and amending any terms and conditions of this Agreement, as may
be required by the applicable rules and regulations or the relevant stock exchange and
governmental agency or authority, or as may be required by the sponsors or underwriters of
the IPO. Moreover, as reasonably judged by the Company, the Subscriber has used all
reasonable endeavors to take all necessary actions to establish financial reporting
system, internal control system in Meiyixinfeng, or to do any other things as required for
Meiyixinfeng’s being a subsidiary of a listed company.”

	(3)	 	The parties hereto agree to add one more section, as follows, into Article 11 of the
Subscription Agreement, and the added section shall be Section 11.10 of the Subscription
Agreement:

“The Subscriber shall be responsible for all the taxation related to or arising from the
consideration, in whatever forms, provided in the Subscription Agreement.”

	(4)	 	Except for the amendment of Section 2.2, Section 2.4 and Section 2.5 of the Subscription
Agreement stipulated herein, the other sections and articles under the Subscription Agreement
are still binding upon the Parties pursuant to the terms and stipulations of the Subscription
Agreement.
	 
	(5)	 	This Supplemental Agreement amends Article 2, Section 2.4 (a) . The words “before
31st December 2007” shall be replaced with the words “before 31st December
2008”
	 
	(6)	 	This Supplemental Agreement adds the following item within Article 2, Section 2.2:

 

 

“(iii) In addition to the considerations set forth in (i) and (ii), the subscriber is entitled
to the lesser of (1) the balance of retained earnings account or (2) the cash balance, as of Oct.
30th, 2007.”

All capitalized terms used herein and defined or construed in the Subscription Agreement shall have
the same meanings as so defined or construed unless otherwise defined herein.

IN WITNESS WHEREOF, this Supplemental Agreement to the Subscription Agreement has been signed
on behalf of each of the Parties hereto as of the date first written above.

Redgate Media Inc.

	 	 	 	 	 
	By  	/s/ Peter Bush Brack
 	 	 	 
	 	Name:  	Brack, Peter Bush 	 	 
	 	Title:  	Chairman & CEO 	 	 
	 
	Redgate Media AD Co., Ltd.

 	 	 
	By  	/s/ Zhu Ying
 	 	 
	 	Name:  	Zhu Ying 	 	 
	 	Title:  	Board Chairman 	 	 
	 
	Lu Xiaoyi

 	 	 
	By  	/s/ Lu Xiaoyiexv10w5w5

Exhibit 10.5.5

The Second Supplemental Agreement to the Subscription Agreement

THIS SECOND SUPPLEMENTAL AGREEMENT TO THE SUBSCRIPTION AGREEMENT (this “Agreement”) is made in
Beijing, the People’s Republic of China (the “PRC”), on August 12, 2009 by and among

Redgate Media Group (“Company”), a company incorporated under the laws of Cayman Islands with its
registered office at Scotia Centre, 4th Floor, P.O. Box 2804, George Town, Grand Cayman, Cayman
Islands, British West Indies;

and

Redgate Media AD Co., Ltd (“PRC Redgate”), a company incorporated under the laws of the PRC with
its registered office at 8/F CITIC Bldg. B, 19 Jianguomenwai, Beijing, China 100004

and

Lu Xiaoyi (“Subscriber”), citizen of the PRC, whose PRC passport number is G10765870

The Company, PRC Redgate and the Subscriber are collectively referred to as the “Parties” and
individually as a “Party”.

Whereas:

	(a)	 	The Company, the PRC Redgate and the Subscriber executed a Subscription Agreement relating to
the subscription of the share capital of the Company on 8th October, 2007
(“Subscription Agreement”), and a Supplemental Agreement to the Subscription Agreement on
9th February, 2009  (“the First Supplemental Agreement”);
	 
	(b)	 	Section 2.2 (“Determination of Consideration”) of the Subscription Agreement provides the
determination method of the Subscribed Shares and the Cash Payment, and the Parties have
amended the provisions of Section 2.2 of the Subscription Agreement in the First Supplemental
Agreement (“New Section 2.2”). The New Section 2.2 provides the determination method of
“Payment for 2008 Earning”;
	 
	(c)	 	Substantial changes occurred after signing of the First Supplemental Agreement and the
Parties now agree to amend the provisions in relation to “Payment for 2008 Earning” under New
Section 2.2 of the Subscription Agreement. The Parties hereby acknowledge and agree that the
amendments hereunder shall supersede in all aspects the provisions in relation to “Payment for
2008 Earning” under New Section 2.2 of the Subscription Agreement as amended by the First
Supplemental Agreement.

 

 

In consideration of the terms and conditions and the mutual covenant and other good considerations
the receipt of which are hereby confirmed, the Parties hereto agree and confirm as follows:

	(1)	 	Given the background as contemplated in the recital, the provisions under the heading
“Payment for 2008 Earning” of New Section 2.2 of the Subscription Agreement shall be hereby
replaced in entirety by the following:
	 
	 	 	“Section 2.2 Determination of Consideration

	 	(II)	 	Payment for 2008 Earning:
	 
	 	 	 	The Parties hereby understand and agree that the total amount of the Payment for 2008
Earning (the “2008 Payment”) shall be calculated as follows:
	 
	 	 	 	2008 Payment = B x 7 x 60%
	 
	 	 	 	Where:
	 
	 	 	 	B = the net profit of Meiyixinfeng for the year end 31st December 2008
calculated in accordance with US GAAP (“Meiyixinfeng 2008 Net Profit”).
	 
	 	 	 	The Company shall pay the 2008 Payment to the Subscriber in the following three (3)
tranches:
	 
	 	 	 	(i) the first tranche of 2008 Payment (“First Tranche of 2008 Payment”)
	 
	 	 	 	The First Tranche of 2008 Payment shall be US$785,215. The Parties hereby further
understand and agree that the RMB582,025 (i.e., USD 85,215 calculated at the exchange
rate of 1USD=6.83RMB) debt owed by the Subscriber to Meiyixinfeng shall be deducted by
the Company from this payment of US$785,215.
	 
	 	 	 	(ii) the second tranche of 2008 Payment (“Second Tranche of 2008 Payment”)
	 
	 	 	 	The Second Tranche of 2008 Payment shall be calculated as follows:
	 
	 	 	 	          Second Tranche of 2008 Payment = D + E - RMB 500,000
	 
	 	 	 	Where:

2

 

	 	 	 	D = the cash that has been collected before December 31, 2009 from Meiyixinfeng’s
accounts receivable as indicated in its unaudited management accounts as of the date of
this Agreement (“Accounts Receivable”).
	 
	 	 	 	E = the cash balance in the China Merchant Bank account # 0785577710001 in the
name of Meiyixinfeng as at the signing date of this agreement. The cash balance amount at
August 12, 2009 is RMB 2,702,511 or USD 395,682 (I USD = 6.83 RMB).
	 
	 	 	 	The Parties hereby understand and acknowledge that PRC Redgate has duly and fully
paid the Subscriber and the other two shareholders of Meiyixinfeng an amount of RMB
500,000, to buy, acquire and enjoy all the one hundred percent (100%) equity interests of
Meiyixinfeng.
	 
	 	 	 	(iii) the third tranche of 2008 payment (“Third Tranche of 2008 Payment”)
	 
	 	 	 	The Third Tranche of 2008 Payment shall be calculated as follows:
	 
	 	 	 	Third Tranche of 2008 Payment = the 2008 Payment - the First Tranche of 2008 Payment -
the Second Tranche of 2008 Payment

The Parties hereby understand and agree that the payment schedule and method of the 2008 Payment
shall be as follows:

	 	 	The First Tranche of 2008 Payment shall be made by the Company to the Subscriber within one (1)
business day after August 12, 2009, and the Subscriber shall, within one (1) business day
following the payment of the First Tranche of 2008 Payment, hand over all chops, including but
not limited to the company chop and finance chop of Meiyixinfeng, and all the accounting and
statutory books and records of Meiyixinfeng to the Company or other entities as designated by
the Company.
	 
	 	 	The Subscriber shall, upon payment of the First Tranche of 2008 Payment by the Company, by
himself, and upon request of the Company, cause all management personnel of Meiyixinfeng to
warrant that all existing and potential liabilities/obligations of Meiyixinfeng have been
properly and duly reflected in Meiyixinfeng’s books and records up to the signing date without
untrue statements or omissions.
	 
	 	 	The Second Tranche of 2008 Payment shall be made by the Company to the Subscriber in accordance
with the terms and conditions herein within five (5) business days upon signing of this
Agreement. It is further agreed that any accounts receivable collected subsequently shall be
paid to the Subscriber within five (5) business days after the cash is cleared and available
for collection and cash balance is above RMB 20,000.

3

 

	 	 	If the Second Tranche remains unpaid five (5) business days after due date in accordance with
the provisions herein, the Company shall pay default interest on the Tranche B at 0.3% per day.
	 
	 	 	The Third Tranche of 2008 Payment should be made by the Company to the Subscriber within seven
(7) business days upon signing this agreement. The Parties hereby understand and agree that the
Third Tranche of 2008 Payment shall be in the form of a promissory note (the “Promissory
Note”). The amount payable under the Promissory Note shall be due on December 31, 2009,
subject to confirmation of net earning number for the fiscal year 2008 of Beijing Meiyixinfeng
Media Technology Co., Ltd. by PriceWaterhouseCoopers in accordance with US GAAP. The principal
sum payable in the Promissory Note shall be adjusted in accordance with the formula for
calculating the Third Tranche of 2008 Payment as stipulated above. The terms and conditions of
the Promissory Note are set forth in Appendix I.
	 
	 	 	Except as stipulated herein, all conditions precedent for 2008 Payment under the First
Supplemental Agreement and the Subscription Agreement are hereby waived by the Parties.
	 
	(2)	 	Except for the amendments stipulated hereunder, other sections and articles under the
Subscription Agreement shall remain binding upon the Parties pursuant to the terms and
conditions of the Subscription Agreement.
	 
	(3)	 	All capitalized terms used herein and defined or construed in the Subscription Agreement
shall have the same meanings as so defined or construed unless otherwise defined herein.

4

 

IN WITNESS WHEREOF, this Agreement has been signed on behalf of each of the Parties hereto as of
the date first written above.

	 	 	 	 	 
	Redgate Media Group

 	 	 
	By  	/s/ Zhu Ying
 	 	 
	 	Name:  	Zhu Ying 	 	 
	 	Title:  	President 	 	 
	 
	Redgate Media AD Co., Ltd.

 	 	 
	By  	/s/ Zhu Ying
 	 	 
	 	Name:  	Zhu Ying 	 	 
	 	Title:  	Board Chairman 	 	 
	 
	Lu Xiaoyi

 	 	 
	By  	/s/ Lu Xiaoyi
 	 	 
	 	 	 	 
	 	 	 	 

5

 

	 	 	 	 	 

Appendix I

Promissory Note

6

 

PROMISSORY NOTE

Dated as of August 12, 2009

Amount: United States Dollars 697,139

	 	1.	 	FOR VALUABLE CONSIDERATION RECEIVED, REDGATE MEDIA GROUP, a company incorporated
under the laws of Cayman Islands with its registered office at Scotia Centre, 4th Floor,
P.O. Box 2804, George Town, Grand Cayman, Cayman Islands, British West Indiesthe Company
(the “Company”) promises to pay to or to the order of LU XIAOYI, a Chinese citizen and
holder of People’s Republic of China passport number: G10765870 (the “Holder”) the amount
of United States Dollars 697,139 (the “Principal Sum”) subject to Section 3, on demand,
with an interest rate of 1.8% per annum.
	 
	 	2.	 	Subject to Section 3, this Promissory Note is repayable in full on December 31,
2009 and thereafter within seven (7) working days upon the Company’s receipt of a written
demand issued by the Holder to the Company.
	 
	 	3.	 	Any payment under this Promissory Note shall be subject to confirmation of net
earning number for the fiscal year 2008 of Beijing Meiyixinfeng Media Technology Co.,
Ltd. by PriceWaterhouseCoopers in accordance with US GAAP. The Principal Sum owing
hereunder and the interest thereon shall be adjusted in accordance with the formula for
calculation of the Third Tranche of 2008 Payment (the “Final Principal Sum”) as
stipulated in the Subscription Agreement signed by the Company, Holder and Redgate Media
AD Co., Ltd. on October 8, 2007 as amended by the Supplemental Agreement on February 9,
2009 and further amended by the Second Supplemental Agreement on August 12, 2009
(collectively, the “Subscription Agreement”). For avoidance of doubt, the Final
Principal Sum shall be binding and conclusive on both parties for the purpose of
calculating the actual amount owed by the Company to the Holder under this Promissory
Note.
	 
	 	4.	 	The Loan shall bear interest of 1.8% per annum prior to default. If the Principal
Sum remains unpaid seven (7) working days after the written demand from the Holder in
accordance with the provisions herein, the Company shall pay default interest on the
Principal Sum and any interest accrued and remaining unpaid from time to time at 0.3% per
day, calculated monthly from the date of demand hereunder.

7

 

	 	5.	 	The Company shall have the right and privilege of prepaying all or any part of the
Principal Sum outstanding without notice to the Holder and without penalty or bonus on
the amount so prepaid.
	 
	 	6.	 	Failure of the Holder to enforce any or his rights or remedies under shall not
constitute a waiver of the rights of the Holder to enforce such rights and remedies
thereafter.
	 
	 	7.	 	This Note is not a negotiable instrument and may not be assigned by the Holder
without the written consent by the Company. The obligations of the Company hereunder
shall be binding upon its successors and assigns.
	 
	 	8.	 	None of the terms or provisions under this Promissory Note may be waived, altered,
modified or amended except with the written consent of all parties hereto.
	 
	 	9.	 	This Promissory Note shall be governed by and construed in all respects in
accordance with the laws of the Hong Kong Special Administrative Region of the People’s
Republic of China.

IN WITNESS WHEREOF this Promissory Note has been executed by the Company as a deed on the day and
year first above written.

	 	 	 	 	 	 	 	 	 
	The Common Seal of
	 	 	)	 	 	 	 	 
	Redgate Media Group
	 	 	)	 	 	 	 	 
	was hereunto affixed
	 	 	)	 	 	 	 	 
	in the presence of:
	 	 	)	 	 	 	 	 
	 
	 	 	)	 	 	(seal)
	 
	 	 	)	 	 	 	 	 
	 
	 	 	)	 	 	 	 	 
	 
	 	 	)	 	 	 	 	 
	Name: Zhu Ying
	 	 	)	 	 	 	 	 
	Title: President
	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Acknowledged by:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Lu Xiaoyi
	 	 	 	 	 	 	 	 

8

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