Document:

EX-10.158 SHARE PURCHASE AGREEMENT, JULY 21, 2006

 

Exhibit 10.158

 

 

 

SHARE PURCHASE AGREEMENT

AMONG

EFG Partners Limited

FOCUS MEDIA HOLDING LIMITED

Appreciate Capital Ltd.

ZHANG QINGYONG

AND

WANG YONGMEI

DATED AS OF

July 21 2006

 

 

 

 

SHARE PURCHASE AGREEMENT

This Share Purchase Agreement (this “Agreement”), dated as of July 21, 2006, among EFG
Partners Limited, a company with limited liability incorporated and validly existing under the laws
of the British Virgin Islands (the “Seller”), FOCUS MEDIA HOLDING LTD., a company with
limited liability incorporated and validly existing under the laws of the Cayman Islands (the
“Buyer”), Appreciate Capital Ltd., a company with limited liability incorporated and
validly existing under the laws of the British Virgin Islands (the “Company”) and together
with Mr. Zhang Qingyong and Ms. Wang Yongmei, the shareholder of EFG Partners Limited. (the
“Seller’s Shareholder”).

WHEREAS:

     1. The Seller legally owns all issued shares of the Company.

     2. The Seller’s Shareholder and the board of directors of the Seller, through resolutions
duly passed in each case on July 20, 2006, respectively, have approved the sale of 70% of the
all issued shares of the Company (“the Shares”) to the Buyer.

     3. The Seller desires to sell, and the Buyer desires to purchase, the Shares, upon the
terms and subject to the conditions set forth in this Agreement.

          NOW, THEREFORE, in consideration of the premises and the representations, warranties, further
undertakings and agreements herein contained and intending to be legally bound hereby, the parties
hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

          1.01 Certain Defined Terms. As used in this Agreement:

          “ADRs” means the American depositary shares of Buyer as listed on the NASDAQ National
Market, Inc.

          “Sanwei Advertisement” means Beijing Yangshi Sanwei Advertisement Co., Ltd.

          “Shenzhen Yangshi Sanwei” means Shenzhen Yangshi Sanwei Advertisement Co., Ltd.

          “Approved Accounting Firm” means the accounting firm employed by the Buyer.

 

 

          “2006 Audited Financial Report” means the financial report issued by Approved
Accounting Firm in accordance with U.S. GAAP based on Sanwei Advertisement and its consolidated
subsidiaries’ audited financial status for the twelve-month period starting from September 1, 2006
and ending August 31, 2007.

          “2007 Audited Financial Report” means the financial report issued by Approved
Accounting Firm in accordance with U.S. GAAP based on Sanwei Advertisement and its consolidated
subsidiaries’ audited financial status for the twelve-month period starting from September 1, 2007
and ending August 31, 2008.

          “2008 Audited Financial Report” means the financial report issued by Approved
Accounting Firm in accordance with U.S. GAAP based on Sanwei Advertisement and its consolidated
subsidiaries’ audited financial status for the twelve-month period starting from September 1, 2008
and ending August 31, 2009.

          “2006 Audited Annual Appraised Net Income” or “P1” means annual net income for the
twelve-month period as set forth in the profit table of 2006 Audited Financial Report, plus the sum
of all amounts deducted in arriving at such audited net income to make provision for the adjustment
amount for appraised annual net income, bad account reserves, the goodwill impairment and the
reserve fund (including all other items which shall be withdrawn as defined under U.S. GAAP Income
Confirmation Principle).

           “2007 Audited Annual Appraised Net Income” or “P2” means annual net income for the
twelve-month period as set forth in the profit table of 2007 Audited Financial Report, plus the sum
of all amounts deducted in arriving at such audited net income to make provision for adjustment
amount for appraised annual net income, the bad account reserves, the goodwill impairment and the
reserve fund (including all other items which shall be withdrawn as defined under U.S. GAAP Income
Confirmation Principle).

          “2008 Audited Annual Appraised Net Income” or “P3” means annual net income for the
twelve-month period as set forth in the profit table of 2008 Audited Financial Report, plus the sum
of all amounts deducted in arriving at such audited net income to make provision for adjustment
amount for appraised annual net income, the bad account reserves, the goodwill impairment and the
reserve fund (including all other items which shall be withdrawn as defined under U.S. GAAP Income
Confirmation Principle).

          “Appraised Annual Net Income” means dated as of the end of the third month after the
end of every fiscal year (e.g. when appraising the annual net income of 2006 fiscal year, the time
dated as of November 30, 2007), 100% of the account receivable with account age exceeding 90 days.

          “C1”means the consideration amount the Buyer shall pay the Seller in the first year
(2007) after the Purchase Closing Date.

          “C2”means the consideration amount the Buyer shall pay the Seller in the second year
(2008) after the Purchase Closing Date.

          “C3”means the consideration amount the Buyer shall pay the Seller in the
third year (2009) after the Purchase Closing Date.

 

 

          “Gross Profit” means the difference of the audited turnover of Sanwei Advertisement
within a fiscal year less business tax and additional tax, less the hardware depreciation, less the
pre-film lease fees, less all the cost and expenses incurred for obtaining the pre-film lease
agreement, and less other relevant cost (including but not limited to salaries, welfares, and
social insurance of relevant staffs) (confirmed in accordance with U.S. GAAP).

          “Gross Profit Rate” means the proportion of Gross Profit of Sanwei Advertisement to
its turnover within a fiscal year.

          “M1” means the Gross Profit Rate of Sanwei Advertisement for the twelve-month period
starting from September 1, 2006 and ending August 31, 2007.

          “M2” means the Gross Profit Rate of Sanwei Advertisement for the twelve-month period
starting from September 1, 2007 and ending August 31, 2008.

          “M3” means the Gross Profit Rate of Sanwei Advertisement for the twelve-month period
starting from September 1, 2008 and ending August 31, 2009.

          “D” means the total consideration of the transaction under this Agreement, provided
that any of M1, M2 and M3 is lower than 55%,
(“D”) = (C1+C2+C3) × 75%.

          “FM Ordinary Shares” means the ordinary shares, $0.00005 par value per share, of
Buyer; such ordinary shares have the same right as other ordinary shares issued by the Buyer.

          “Dealing Price of FM Ordinary Share” means the average close price of Buyer’s shares
on the NASDAQ Market fifteen (15) days before the Purchase Closing Date.

          “Litigations” means claims, law suit, prosecution or arbitration, interpellation,
legal procedure or investigation raised by or against any Government Department.

          “Affiliate” means, with respect to any specified Person, any other Person that
directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under
common control with, such specified Person. In the former sentence, ”Control” (including the terms
“controlled by” and “under common control with”) means the possession, directly or indirectly, of
the power to direct or cause the direction of the affairs or management of a Person, whether
through the ownership of voting securities, by Contract or otherwise, including the constitution of
an actual control.

          “PRC” means the People’s Republic of China, but solely for the purposes of this
Agreement excluding the Hong Kong Special Administrative Region, Macau Special Administrative
Region and the island of Taiwan.

          “Business Day” means any day that is not a Saturday, a Sunday or other day when banks
are required or authorized by law to be closed in PRC or USA.

          “Agreement” means this Share Purchase Agreement among the parties hereto, as amended,
modified or supplemented from time to time.

          “Group Companies” means the Company, the subsidiaries of the Company, any variable
interest entity controlled by and consolidated with the Company, the Acquired

 

 

Businesses, and any
entities which is controlled by any of the aforesaid companies, a list of which companies is set
forth in Schedule 1.1 hereto.

          “Business” means cinema film advertisement agency, design, production and
dissemination business of the Group Companies, as currently operated.

          “Purchase Closing Date” means the date when all the conditions set forth in Article VI
and Article VII of this agreement are satisfied and other terms and conditions of this agreement
are complied with.

          “Competitive Business” means the following business which involves any party of this
Agreement: (i) cinema film advertisement agency, design, production and dissemination, (ii) media
marketing for elevator post of any commercial buildings, (iii)media marketing for of LCD
advertisement in any commercial buildings and media marketing of newspaper shift advertisement,
(iv) media marketing for out-of-home LED advertisement, and (v) wireless advertisement. The
“commercial buildings” shall include but not limited to commercial buildings, department stores,
places of catering and entertainment, shopping malls, hospitals, airports, railway stations, coach
stations, golf fields, health centers, automobile 4S stores, apartments, airport coach, banks,
governmental buildings and other public places.

          “Contract” means any contract, agreement, arrangement or understanding, whether
written or oral and whether express or implied.

          “Control” (including the terms “controlled by” and “under common control with”), with
respect to the relationship between or among two or more parties, means the possession, directly or
indirectly, of the power to direct or cause the direction of the affairs or management of a party,
whether through the ownership of voting securities, by Contract or otherwise, including the
ownership, directly or indirectly, of securities having the power to elect a majority of the board
of directors or similar body governing the affairs of such party.

          “Control Agreement” means, collectively, the agreements, contracts and instruments, a
list of which is attached hereto as Schedule 1.5, which enable the Buyer to control and consolidate
with its financial statements each Group Company and the Acquired Businesses.

          “Exchange Act” means the United States Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

          “Key
Management” means Mr. Zhang Qingyong
 and Ms. Wang Yongmei .

          “Material Adverse Effect” or “Material Adverse Change” means any effect or
change that would be materially adverse (i) to the business, assets, condition (financial or
otherwise), operating results, or operations of any Group Companies, or (ii) to the ability of any
of the Seller’s Shareholder to timely consummate the transactions contemplated by this Agreement or
by any of the Ancillary Documents.

 

 

          “Governmental Authority” means Chinese government or any government or governmental or
regulatory departments thereof, or administrative subdivision thereof, or any agency or committee
thereof, or any court or arbitrator.

          “Law” means any statute, code, law, ordinance, regulation or rule or other legally
binding requirement of any Governmental Authority.

          “Securities Act” means the United States Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

          “Ancillary Documents” means those agreements, documents and instruments as set forth
in Schedule 1.6.

          “Claim” means any and all administrative, supervisory or judicial
litigation/arbitration, prosecution, application, appeal, request, payment notice, compensation
claim, lien, or any notice, investigation, litigation procedure, consent order or consent agreement
concerning the lawful or unlawful activities.

          “Employee’s Misconduct” means an employee’s gross negligence in the performance of his
duties to the Group Companies; an employee’s misappropriation of assets of, or embezzlement from,
the Group Companies; willful breach by an employee of such employee’s material obligations under
the relevant Service Agreement entered into by the employee; a material breach by the employee of
this Agreement, the Confidentiality Agreement, the Manager Non-Compete Agreement and the Employee
Non-Compete Agreement entered into by such employee; and willful violation of Buyer’s Code of
Ethics or other written policy.

          “Encumbrance” means any security interest, pledge, mortgage, lien, charge, limitation,
condition, equitable interest, option, easement, encroachment, right of first refusal, adverse
claim or restriction of any kind, including any restriction on transfer or other assignment, as
security or otherwise, of or relating to use, quiet enjoyment, voting, receipt of income or
exercise of any other attribute of ownership.

          “Guaranty” means, as to any Person, any contract, agreement or understanding of such
Person pursuant to which such Person guarantees the indebtedness, Liabilities or obligations of
others, directly or indirectly, in any manner, including agreements to purchase such indebtedness,
Liabilities or obligations, or to supply funds to or in any manner invest in others, or to
otherwise assure the holder of such indebtedness, Liabilities or obligations against loss.

          “Intellectual Property” means (a) all rights in inventions (whether patentable or
un-patentable and whether or not reduced to practice), all improvements thereto, and all patents,
patent applications, and patent disclosures, statutory invention registrations together with all
re-issuances, divisions, continuations, continuations-in-part, revisions, extensions, and
reexaminations thereof and all rights therein provided by Law or international treaties and
conventions; (b) all trademarks, service marks, trade dress, logos, trade names, and corporate
names, together with all translations, adaptations, derivations, and combinations thereof and
including all goodwill associated therewith, and all applications, registrations, and renewals in
connection therewith; (c) all copyrightable works, all copyrights, and all applications,
registrations, and renewals in connection therewith; (d) all trade secrets and confidential
business information (including databases, ideas, research and development,

 

 

know-how, formulas, compositions, manufacturing and production processes and techniques,
technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost
information, and business and marketing plans and proposals); (e) all computer programs and
software (including data and source and object codes and related documentation); (f) all other
property rights in connection with the foregoing; and (g) all copies and tangible embodiments
thereof (in whatever form or medium).

          “Liabilities” means any debts, liability or obligation (whether known or unknown,
claimed or not, absolute or probable, individually or in the aggregate, liquidated or outstanding,
due or overdue), and any or all law suits, damages, tax variations, penalties fines, interests, tax
assessments, judgments, losses, taxes, court fees, costs (including but not limited in the attorney
fees, the expert consultant fees and the out-of-pocket fees).

          “Person” means any natural person, corporation, limited liability corporation,
unincorporated organization, partnership, association, joint stock company, joint venture, trust or
government, or any agency or political subdivision of any government, or any other entity.

ARTICLE II

PURCHASE AND SALE OF THE SHARES

          2.01 Purchase and Sale of the Shares. Subject to the terms and conditions set forth
in this Agreement, on the Purchase Closing Date, the Seller shall sell to Buyer the Shares and
Buyer shall purchase from the Seller the Shares, on a fully converted and diluted basis, for total
consideration consisting of the terms and conditions, as set forth below.

          2.02 Purchase Considerations. In consideration of purchasing the Shares, the Buyer
shall pay the Seller the amount calculated based on the financial performance (i.e. the “2006
Audited Annual Appraised Net Income”, the “2007 Audited Annual Appraised Net Income” and “2008
Audited Annual Appraised Net Income”) of Sanwei Advertisement after the Purchase Closing Date and
based on the gross profit rate for the continuous three (3) years after the Purchase Closing Date,
and such amount shall be calculated in accordance with the formula provided in Article 2.05. The
Seller undertakes that the audited annual net income of Sanwei Advertisement in the year of 2006,
2007 and 2008 will be at least then 2 million, 3 million and 5 million respectively.

          2.03 Purchase Deposit. Within seven (7) business days after the date of this
Agreement, the Buyer shall pay the Seller a Purchase Deposit (the “Deposit”) with the amount of USD
2.8 Million and the Seller shall provide the Buyer with a Purchase Deposit Receipt immediately.

          2.04 Purchase Closing.

          Unless this Agreement being terminated pursuant to Article VIII before the Purchase Closing
Date, subject to the terms and conditions set forth in this Agreement, the sale and purchase of the
Shares shall be accomplished within three (3) business days after the Purchase Closing Date.

 

 

          On
the Purchase Closing Date, the Seller shall deliver/accomplish or cause to be
delivered/accomplished the following items:

	 	(1)	 	all previously undelivered
documents and the Ancillary Documents required under Article VII
hereto;
	 
	 	(2)	 	in respect of Company, the business
license, common seal (if exists), registered certificates of
share or share certificate book (including the registered
certificates of those un-issued share) and all minute books and
other statutory books or equivalent items which shall be kept by
relevant shareholders, in accordance with the Law of the
jurisdiction where Company is registered ; and
	 
	 	(3)	 	any other procedures which are
necessary for the legal transfer of the Share to the Buyer on the
Purchase Closing Date.

          2.05 Formula for Calculation of Consideration and Payments Arrangement.

	 	(a)	 	Within fifteen (15) days after the issuance and delivery of the
2006 Audited Financial Report to both the Seller and the Buyer, the Buyer shall
pay the Seller the initial consideration(“C1”), C1 shall be calculated as the
followings:

	 	(1)	 	If P1 3 USD 2 million, C1 shall be
calculated by:
	 
	 	 	 	C1= P1×2×70%
	 
	 	 	 	The Buyer shall then pay the Seller the amount in cash equaling
the amount as for (C1 less Deposit), the USD 2.8 million Deposit
paid by the Buyer to the Seller shall be automatically transferred
as the part of such amount in cash.
	 
	 	(2)	 	If P1 < USD 2 million, C1 shall be
calculated by:
	 
	 	 	 	C1= P1×2×70%
	 
	 	 	 	The Seller shall then return the Buyer the balance between USD
2.8 million and the Deposit, i.e. the Seller shall return the
Buyer the amount as for (USD 2.8 million less C1) in cash. Such
amount shall be paid in USD to the account designated by the
Buyer within fifteen (15) business days after the issuance and
delivery of the 2006 Audited Financial Report to both the Seller
and the Buyer.

	 	(b)	 	Within fifteen (15) business days after the issuance and
delivery of the 2007 Audited Financial Report to both the Seller and the Buyer,
the Buyer shall pay the Seller the initial
consideration(“C2”), C2 shall be calculated as the followings:

 

 

	 	(1)	 	If P2 3 USD 2.7 million, C2 shall
be calculated by:
	 
	 	 	 	C2 = P2 ×2×70%
	 
	 	(2)	 	If P2 < USD 2.7 million, C2 shall
be calculated by:
	 
	 	 	 	C2 = P2 ×1×70%

50% of the C2 shall be paid by Buyer to Seller in cash, and the
other 50% amount shall be paid by FM Ordinary Shares with equal
value. The amount of FM Ordinary Shares shall be calculated by: (C2×50%) Dealing Price of FM Ordinary Shares.

	 	(c)	 	Within fifteen (15) business days after the issuance and
delivery of the 2008 Audited Financial Report to both the Seller and the Buyer,
the Buyer shall pay the Seller the initial consideration (“C3”), C3 shall be
calculated as the followings, except for the circumstances under (d) of this
Section, which shall be adjusted in accordance with (d):

	 	(1)	 	If P3 3 USD 3.6 million, C3 shall
be calculated by:
	 
	 	 	 	C3= P3×2×70%
	 
	 	(2)	 	If P3 < USD 3.6 million, C3 shall
be calculated by:
	 
	 	 	 	C3= P3×1×70%

50% of the C3 shall be paid by Buyer to Seller in cash, and the
other 50% amount shall be paid by FM Ordinary Shares with equal
value. The amount of FM Ordinary Shares shall be calculated by: (C3×50%) Dealing Price of FM Ordinary Shares. The lock-up period
for such shares shall be twelve (12) month from the date of the
issuance of such shares.

	 	(d)	 	Special Provision of Formula for Calculation of
Consideration. The Seller undertakes to the Buyer that the gross profit
rate (i.e. M1, M2 and M3) of Sanwei Advertisement will not less then 55% for
continuous three (3) years after the Purchase Closing Date. Should any of
M1, M2 or M3 less then 55%, the Seller agrees to adjust the consideration
amount under this Agreement as D, and the balance will be deducted upon the
payment of C3 in order to make the final payment made by the Buyer to the
Seller equal D-(C1+C2). If D-(C1+C2) <0, the Buyer shall not pay C3 and the
Seller shall pay the Buyer the balance between the amount being deducted and
C3, such

 

 

	 	 	 	amount shall be paid in USD to the bank account appointed by Buyer within
fifteen (15) business days after the issuance and delivery of the 2008
Audited Financial Report to both the Seller and the Buyer.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE SELLER

          The Seller and the Seller’s Shareholder, jointly and severally, represent and warrant to the
Buyer as follows as of the date hereof:

          3.01 Due Organization, Good Standing and Power. The Seller is a company duly
incorporated, validly existing and in good standing under the laws of the British Virgin Islands
with independent juristic personality. The Seller has the requisite power and authority (corporate
and other) to own, lease and operate its assets and to conduct the business now being conducted by
it. The Seller has all requisite power and authority to enter into this Agreement and the Ancillary
Documents to which it is a party and to perform its obligations hereunder and thereunder.

          3.02 Company Status. The Company is a holding company duly incorporated, validly
existing and in good standing under the laws of the British Virgin Islands which has no business
activities. The Company has no Liabilities or obligations and is not party to any Contract, other
than this Agreement and the Ancillary Documents to which it is a party.

          3.03 Authorization, Enforceability. The execution and delivery of this Agreement
and the Ancillary Documents to which the Seller has been duly authorized by all necessary corporate
action on the part of each such party. Subject to the public policies, each of this Agreement and
the Ancillary Documents constitutes a valid and binding agreement of the Seller, enforceable
against each of them in accordance with its terms.

          3.04 Capitalization; Ownership and Transfer of Shares; Valid Issuance.

          (a) The Shares set forth in Schedule 3.04 hereto constitute the only equity capital of the
Company. All of the Shares were duly authorized for issuance and are validly issued, fully paid and
non-assessable.

          (b) The Seller is the only record and beneficial owner of the said Shares and has good and
marketable title to such Shares, free and clear of any and all Encumbrances. The Seller has the
corporate or other applicable organizational power and authority to sell, transfer, assign and
deliver the Shares as provided in this Agreement, and such delivery will convey to the Buyer good
and valid title to the Shares, free and clear of any and all Encumbrances.

          3.05 Group Companies.

          a) Schedule 3.05 sets forth for each of the Group Companies (i) its jurisdiction of
incorporation, formation or organization, as applicable, and (ii) the number of authorized, issued
and outstanding shares of each class of its capital stock or other authorized,
issued and outstanding equity interests, as applicable, the names of the holders thereof, and
the number of shares or percentage interests, as applicable, held by each such holder. Except

 

 

as set forth in Schedule 3.05, each of the Group Companies is duly incorporated or formed, as
applicable, validly existing and, in good standing under the Laws of its jurisdiction of
incorporation or formation, as applicable, has the requisite corporate or similar power and
authority (corporate and other) to own, lease and operate its assets and to carry on its business
now being conducted by it. All the issued and outstanding shares of capital stock or other equity
interests of the Group Companies are owned of record, free and clear of any Encumbrances except as
set forth in Schedule 3.05.

          b) No shares of capital stock or other equity or ownership interests of any Group Company have
been issued in violation of any rights, agreements, arrangements or commitments under any provision
of applicable Law, the certificate of incorporation or bylaws or comparable organizational
documents of any Group Company or any Contract to which the Group Company is a party or by which
the Group Company is bound.

          3.06 Corporate Records. The Seller has made available to the Buyer true, correct
and complete copies of the certificates of incorporation, by-laws or comparable organizational
documents and business licenses of each Group Company. Such certificates of incorporation,
by-laws, or comparable organizational documents and business licenses are in full force and effect.
None of the Group Companies is in violation of any of the provisions of its certificate of
incorporation, bylaws or comparable organizational documents. The transfer books and minute books
of each Group Company that have been made available for inspection by Buyer prior to the date
hereof are true and complete.

          3.07 No Approvals or Conflicts. The execution, delivery and performance by the
Seller of this Agreement and the Ancillary Documents to which it is a party do not and will not (i)
violate, conflict with or result in a breach by any of the Seller Parties of the organizational
documents of any of the Seller, (ii) violate, or conflict with any Governmental Order or Law
applicable to the Seller, and require any order, consent, approval or authorization of, or notice
to, or declaration, filing, application, qualification or registration by the Seller with, any
Governmental Authority, except in the cases such violation, conflict, breach, default, termination,
acceleration, cancellation or failure to give notice, register or obtain approval would not
reasonably be expected to have a Material Adverse Effect. No Governmental Authorizations are
required for the execution and performance by the Seller of this Agreement and the Ancillary
Documents and the consummation by the Seller of the transactions contemplated hereby and thereby

          3.08 Compliance with Law; Governmental Authorizations. None of the Group Companies is
in violation of any Governmental Order or Law applicable to them or any of their respective
properties, except where any such violation would not reasonably be expected to have a Material
Adverse Effect.

          3.09 Licenses. Except otherwise agreed in Schedule 3.09, each of the Group
Companies has obtained all material licenses, consents, authorizations, approvals, and permits of
and from, and has made all declarations and filings with, all Governmental Authorities necessary
for the conduct of the Business and such licenses, consents, authorizations, approvals or permits
contain no materially burdensome restrictions or conditions. To the Knowledge of the Seller, no
government department is considering modifying, suspending or revoking any such licenses, consents,
authorizations or approvals and each of the Group Companies is in compliance with the provisions of
all such licenses,
consents, authorizations, approvals, orders, certificates or permits.

 

 

          3.10 Litigation. There are no suits, actions, arbitrations, proceedings or
investigations pending or, to the Knowledge of the Seller, threatened against any of the Seller and
the Group Companies.

          3.11 Tax Matters.

          (a) (i) All income Tax Returns required to be filed by or on behalf of the Group Companies has
been accurately prepared in all material respects and filed in a timely manner (within any
applicable extension periods) and are true, correct and complete in all material respects, (ii) all
Taxes shown to be due on such Tax Returns have been timely paid in full or will be timely paid in
full by the due date thereof, and the Group Companies have adequately provided for all Taxes for
which they are required to provide, except where any failure to pay or underpayment would not
reasonably be expected to have a Material Adverse Effect, (iii) no material claims being asserted
in writing with respect to any Taxes of any of the Group Companies; and, (iv) no material probable
claim for compensation being asserted with respect to any Taxes of any of the Group Companies.

          (b) Each of the Group Companies is and has been in compliance with all applicable Laws
relating to the payment, withholding and exemptions of Taxes and has duly and timely withheld from
employee salaries, wages and other compensation and has paid over to the appropriate taxing
authorities all amounts required to be so withheld and paid over for all periods under all
applicable Laws, except where any such noncompliance would not reasonably be expected to have a
Material Adverse Effect;

          (c) The Seller has made available to the Buyer complete copies of all approval documents with
respect of any Tax exemption or all statements to qualify for Tax exemptions;

          (d) There are no audits or investigations or penalties by any taxing authority of any of the
Group Companies in progress nor, to the Knowledge of the Seller is there any pending or threatened
audit or investigation or penalties by any Government Authority;

          (e) No Group Company is a party to any tax indemnity, tax allocation or tax sharing or similar
agreement or arrangement (whether or not written) pursuant to which it will have any obligation to
make any payments after the Purchase Closing.

          3.12 Officers, Employees and Labor.

          (a) Each of the Group Companies has complied in all material aspects with all applicable
Laws relating to the employment of labor, including provisions thereof relating to wages, hours,
social welfare, equal opportunity and collective bargaining. There is no organized labor strike,
dispute, slowdown or claim pending, or to the Knowledge of the Seller, threatened, against or
affecting any of the Group Companies. None of the Group Companies has any Contract with any labor
union.

          (b) None of the employees of the Group Companies is subject to any Governmental Order that
would interfere with the use of his or her best efforts to promote the interests of the Group
Companies. Any of such employees is now obligated: (i) the execution, delivery and performance of
any of this Agreement and the Ancillary Documents; (ii) the
conduct of the Business of any Group Company as currently conducted or as proposed to be
conducted.

 

 

          (d) Except as required by applicable laws and regulations, none of the Group Companies has
any obligation to provide retirement, death or disability benefits to any of the present or past
employees of the Group Companies, or to any other person.

          (e) None of the Seller and the businesses or entities operated or owned by the Seller,
nor, to the Knowledge of the Seller, any of their respective officers, directors, supervisors,
managers or employees have, directly or indirectly, owned any interest, in any entity, or have
entered into any transactions, that may compete with the Group Companies, or are otherwise involved
in the Business.

          (f) (i) no material labor dispute, work stoppage, slow down, strike or other conflict with
the employees of any of the Group Companies exists; (ii) none of the Group Companies is engaged in
any unfair labor practice (iii) there is no unfair labor practice complaint pending or, to the
Knowledge of the Seller, threatened against any of the Group Companies before any competent
Governmental Agency, and no grievance or arbitration proceeding arising out of.

          3.13 Loans.

          Except as described in this Agreement and the Ancillary Documents, none of the Group Companies
has, directly or indirectly: (i) extended credit, arranged to extend credit, or renewed any
extension of credit, to or for any director or executive officer of the Seller and the Group
Companies, or (ii) made any material modification to any term of any of the above mentioned
individuals.

          3.14 Prohibited Payments.

          To the Knowledge of the Seller, none of the Group Companies, nor any director, officer, agent,
employee or other person associated with or acting on behalf of the Group Companies, has used any
corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses
relating to a political activity, made any direct or indirect unlawful payment to any government
official or employee from corporate funds; or made any bribe, rebate, payoff, influence payment,
kickback or other unlawful payment.

          3.15 Share Option and Other Plans.

          None of the Group Companies has any pension, profit sharing, stock option, employee stock
purchase or other plan providing for incentives or other compensation to employees (aside from any
salary, bonus payable and social insurance arrangements provided by Laws).

 

 

          3.16 Intellectual Property.

          (a) The Group Companies have rights to acquire from its management and employees all
Intellectual Property material to the Business, including any job-related inventions as
Intellectual Property held by any management or employees of the Group Companies (including the
Intellectual Property holding by the senior management of the Group Companies).

          (b) Each Group Company has taken all reasonable steps in accordance with standard industry
practices to protect its rights in its Intellectual Property and at all times has maintained the
confidentiality of all information that constitutes or constituted a trade secret of each Group
Company.

          (c) No Group Company is a party to any pending legal proceedings which involve a claim of
infringement, unauthorized use, or violation of any intellectual property right by any Person
against such Group Company or challenging the ownership, use, validity or enforceability of, any
material Intellectual Property owned by or exclusively licensed to such Group Company.

          (d) To the Knowledge of Seller, no Person is infringing, violating, misusing or
misappropriating any material Intellectual Property owned by any Group Company, and no written
claims have been made against any Person by any Group Company.

          3.17 Material Contracts

          (a) Except as set forth on Schedule 3.17, on the Purchase Closing Date, none of the Group
Companies is a party to or is bound by:

	 	1.	 	any Contract which contains restrictions with
respect to payment of dividends or any other distribution in respect of
its capital stock, rights or other interests;
	 
	 	2.	 	any Contract requiring the applicable Group
Company to make future capital expenditures in excess of RMB 500,000
(either individually or in the aggregate);
	 
	 	3.	 	any Contract applicable to Group Company, which
lead to indebtedness with an amount in excess of RMB500,000;
	 
	 	4.	 	any loan or advance by a Group Company to, or
investment by a Group Company in, any Person, in each case, which
involves an amount in excess of RMB500,000, or any agreement, contract
or commitment relating to the making of any such loan, advance or
investment;
	 
	 	5.	 	any Contract with a Group Company, or any
management, service, consulting or any other similar type of Contract
requiring payment of fees in excess of RMB500,000 per year;
	 
	 	6.	 	any material warranty, guaranty Contract;
	 
	 	7.	 	any material Contract that cannot be terminated
by a Group Company without liability upon less than ninety (90) days’
notice;

 

 

	 	8.	 	any collective bargaining agreement with any
labor union or other representative of employees;
	 
	 	9.	 	any Contract that governs any joint venture,
partnership or other cooperative arrangement or any other relationship
involving a sharing of profits and risks;
	 
	 	10.	 	any Contract that would result in the merger
with or into or consolidation into another Person;
	 
	 	11.	 	any Contract for the sale of any of the assets
of any Group Company or for the grant to any Person of any preferential
rights to purchase any of its assets;
	 
	 	12.	 	any Contract in relation to real estate,
including but not limited to building purchase contract, building lease
contract;
	 
	 	13.	 	any Contract with any Governmental Authority;
or

any material amendment, modification or supplement in respect of any of the
foregoing made other than in the ordinary course of business consistent with past
practice (each of (1)-(13), a “Material Contract”).

     (b) True and correct copies (or, if oral, written summaries) of each of the Material Contracts
have been made available to the Buyer.

     (c) No condition exists or event has occurred that would constitute a default by (x) any of
the Group Companies under any Material Contract or (y) any other party to any Material Contract.

     3.20 Compliance with Laws. (a) Each of the Group Companies is, and at all times has
been, in full compliance with all applicable Laws in all material aspects.

     (a) No event has occurred or circumstance exists that (i) may constitute or result in a
violation by any of the Group Companies of any applicable Law where any such violation or failure
would reasonably expected to have a Material Adverse Effect, or (ii) may give rise to any
obligation on the part of any of the Group Companies to undertake, or to bear all or any portion of
the cost of, any remedial action of any nature and any such obligation would reasonably be expected
to have a Material Adverse Effect. None of the Group Companies has received any notice or other
communication (whether oral or written) of illegal behavior or probable illegal behavior from any
Governmental Authority.

     (b) To the Knowledge of Seller, none of the Group Companies or any director, officer, agent,
employee, or any other Person associated with or acting for or on behalf of the foregoing, has
offered, paid, and promised to pay any money to any Government department or its Official for the
benefits or interests of the Group Company.

     (c) To the Knowledge of Seller Parties, none of the beneficial owners of any interest in any
Group Company is a Government Official.

 

 

     3.21 None of the assets of the Group Companies constitute state-owned assets.

     3.22 The Seller and the Group Companies have fully provided Buyer with all the
information known to the Seller and Group Companies that Buyer has requested. None of this
Agreement, the Ancillary Documents or any other statements or certificates or other materials made
or delivered, or to be made or delivered to Buyer in connection herewith or therewith, contains any
untrue statement of a material fact or omits to state a material fact necessary to make the
statements herein or therein not misleading.

     3.23 No other Representations or Warranties. Except for the representations and the
warranties made in Article III herein, no other representations or warranty is expressed or implied
by the Seller or the Seller’s Shareholder to the Buyer.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

          Buyer hereby represents and warrants to the Seller on the date of this agreement as follows:

          4.01 Organization. Buyer is a corporation duly incorporated, validly existing and
in good standing under the Laws of the Cayman Islands. Buyer has all requisite corporate power and
authority to own its assets and to carry on its business as now being conducted by it and is duly
qualified or licensed to do business and is in good standing, except where the failure to be so
qualified or licensed would not reasonably be expected, individually or in the aggregate, to have a
material adverse effect on the ability of the Buyer to consummate the transactions contemplated by
this Agreement and by the Ancillary Documents to which it is a party.

          4.02 Authorization, Enforceability. Buyer has the corporate power and authority to
execute and deliver this Agreement and the Ancillary Documents. The execution and delivery of this
Agreement and the Ancillary Documents have been duly authorized by all necessary corporate action
on the part of Buyer and no other corporate or stockholder proceedings or actions are required to
consummate the transactions contemplated hereby. This Agreement has been duly executed and
delivered by the Buyer and constitutes a valid, enforceable and binding agreement of the Buyer.

          4.03 No Approvals or Conflicts. The execution, delivery and performance by the
Buyer of this Agreement and the Ancillary Documents and the consummation by the Buyer of the
transactions contemplated hereby and thereby do not and will not (i) violate, conflict with or result in a
breach by the Buyer of the certificates of incorporation, by-laws or equivalent documents of the
Buyer, (ii) violate, conflict with or result in a breach of, or constitute a default by the Buyer,
or give rise to any right of termination, cancellation or acceleration under, or result in the
creation of any Encumbrance upon any of the properties of the Buyer under, any note, bond,
mortgage, indenture, deed of trust, license, franchise, permit, lease, contract, agreement or other
instrument to which the Buyer or any of its properties may

 

 

be bound, (iii) violate or result in a
breach of any Governmental Order or Law applicable to the Buyer or any of its properties or (iv)
require any order, consent, approval or authorization of, or notice to, or declaration, filing,
application, qualification or registration with, any Governmental Authority, except, with respect
to the foregoing clauses (ii), (iii) and (iv) above, as would not, individually or in the
aggregate, reasonably be likely to have a material adverse effect on the ability of the Buyer to
consummate the transactions contemplated by this Agreement and by the Ancillary Documents to which
it is a party.

          4.04 No Other Representations or Warranties. Except for the representations and
warranties contained in this Article IV, the Buyer will not make any other express or implied
representation or warranty to the Seller.

ARTICLE V

FURTHER UNDERTAKINGS AND AGREEMENTS OF THE PARTIES

          5.01 Conduct of Business Prior to a Closing.

          (a) Without the prior consent of the Buyer, except as contemplated by this Agreement and the
Ancillary Documents, from and after the signing date of this Agreement and until the Purchase
Closing Date, (1) the Company shall cause the Group Companies to (i) conduct the Business in all
material respects in the ordinary course of business consistent with past practice, (ii) not change
the scope of the Business and (iii) use their commercially reasonable efforts to maintain
satisfactory relationships with cinemas, customers and others having material business
relationships with them. (2)Except as contemplated by this Agreement and except as set forth on
section 5.01, the Company shall cause the Group Companies to not do any of the following without
the prior written consent of the Buyer:

	 	(i)	 	except for purchases and sales by a Group Company to or from
another Group Company, purchase, sell or issue any of their capital stock or
other equity interests or grant or make any option, subscription, warrant,
call, commitment or agreement of any character in respect of their capital
stock or other equity interests;
	 
	 	(ii)	 	issue or pay any dividends other than to any of the Group
Companies;
	 
	 	(iii)	 	conduct any split, recombination or reclassification or
issuance of capital stock;
	 
	 	(iv)	 	sell or otherwise dispose of assets with value in the aggregate
in excess of RMB 1,000,000, including sales of assets in the ordinary course of
business;
	 
	 	(v)	 	other than the acquisitions, merge or consolidate with any
Person;
	 
	 	(vi)	 	acquire assets having an aggregate value exceeding RMB
1,000,000, including (A) acquisitions in the ordinary course of business and
(B) capital expenditures permitted by clause (vii) below;
	 
	 	(vii)	 	prior to the Purchase Closing Date, make capital expenditures
in

 

 

	 	 	 	excess of RMB1,000,000 in aggregate;
	 
	 	(viii)	 	provide loans or guarantee any indebtedness for borrowed money from the
Seller or its subsidiaries in the ordinary course of business;
	 
	 	(ix)	 	incur any Encumbrance of material assets, other than Permitted
Encumbrances;
	 
	 	(x)	 	increase the compensation of employees of the Group Companies
other than (A) in the ordinary course of business or (B) as required by any
agreement in effect as of the date hereof or as required by Law;
	 
	 	(xi)	 	make any material change in the accounting methods or practices
followed by any of the Group Companies (other than such changes that have been
required by Law or U.S. GAAP);
	 
	 	(xii)	 	enter into any contract that restricts the Group Companies
from engaging in any line of business in any geographic area or competing with
any Person that materially impairs the operation of the business of the Group
Companies, individually or taken as a whole;
	 
	 	(xiii)	 	enter into any partnership, limited liability company or joint venture
agreement;
	 
	 	(xiv)	 	terminate or make any material amendment to a material
contract;
	 
	 	(xv)	 	other than (A) in the ordinary course of business, (B) as
required by any agreement in effect as of the date hereof or (C) as required by
Law, enter into, adopt or amend any employment agreement or employee benefit
plan with or for the benefit of any of its employees;
	 
	 	(xvi)	 	purchase, cancel or terminate any insurance policy naming any
of the Group Companies as a beneficiary or a loss payee;
	 
	 	(xvii)	 	subject to the written consent of the Buyer, amend any of its organizational
documents; or
	 
	 	(xviii)	 	agree or commit to do any of the foregoing.

          (b) During the period commencing on the date hereof and ending on the Purchase
Closing Date, the Seller and the Seller’s shareholder will cause the Group Companies to afford
Buyer and its counsel, accountants and other authorized representatives, during normal business
hours, upon reasonable advance notice to the officers, directors, employees, accountants and
other advisors and agents, properties,
books, records and contracts of the Group Companies, provided that such access does not
interfere with normal business operations. The parties hereto agree that the provisions of the
Confidentiality Agreement shall continue in full force and effect following the execution and
delivery of this Agreement. All information obtained by the Buyer and its counsel, accountants
and representatives pursuant to this Section 5.1(b) shall be kept confidential in accordance
with the Confidentiality Agreements.

 

 

          5.02 Filing and Consents. Each of the Seller, the Seller’s Shareholder and the
Group Companies, on the one hand, and the Buyer, on the other hand, shall use all commercially
reasonable efforts to obtain and to cooperate in obtaining any consent, approval, authorization or
order of, and in making any registration or filing with, any Governmental Authority or other Person
required in connection with the execution, delivery or performance of this Agreement, including any
filings pursuant to (i) the Securities Act and Exchange Act, and (ii) any other applicable filings
or consents. To the extent feasible under applicable PRC laws and regulations, the Seller’s
Shareholder (including the Chinese resident who obtains the shares of the Seller after the
execution of this Agreement) shall complete all necessary filings or registrations, or obtain all
necessary approvals, as required by the State Administration for Foreign Exchange (“SAFE”)
after the Purchase Closing Date. The Seller and the Seller’s Shareholder hereby agree that, with
respect to the Shareholder that is a PRC resident and the Seller’s Shareholder (including the
Chinese resident who obtains the shares of the Seller after the execution of this Agreement) (each
a “SAFE Registrant”), unless and until Buyer has received sufficient documentation to its
satisfaction that such SAFE Registrant has completed all necessary filings or registrations
required to comply with the rules and regulations of SAFE, the Seller shall not release any FM
Ordinary Shares to any such SAFE Registrant or to dispose of any FM Ordinary Shares by any methods.

          5.03 Tax Matters; Cooperation; Preparation of Returns; Tax
Elections.

     (a) The Seller and the Seller’s Shareholder agree to furnish or cause to be furnished to
each other, as promptly as practicable, such information and assistance relating to any of the
Group Companies (including access to books and records, employees, contractors and
representatives) as is reasonably necessary for the filing of all Tax Returns, the making of
any election related to Taxes, the preparation for any audit by any Taxing Authority, and the
prosecution or defense of any claim, suit or proceeding relating to any Tax Return. The Seller
shall retain all books and records with respect to Taxes pertaining to the Group Companies
until the expiration of all relevant statutes of limitations. At the end of such period, each
party shall provide the other with at least ten days prior written notice before destroying any
such books and records, during which period the party receiving such notice can elect to take
possession, at its own expense, of such books and records.

     (b) The Company shall prepare, or cause to be prepared, all Tax Returns in respect of any
of the Group Companies for any taxable year ending on or before the Purchase Closing Date. The
Seller shall timely pay to the relevant Taxing Authority all Taxes due in connection with any
such Tax Returns.

     (c) The Group Companies shall pay all transfer, documentary, sales, use, registration and
other such Taxes (including all applicable real estate transfer Taxes, but excluding any Taxes
based on or attributable to income or gains) and related fees incurred in connection with this
Agreement and the Ancillary Documents and the transactions contemplated hereby and thereby.

          5.04 Non-Competition.

     (a) the Seller and the Seller’s Shareholder agree that for a period of (i) four (4)
years following the Purchase Closing Date and (ii) two (2) year following the termination or
expiration of the Service Agreement entered into between any of the Seller and Buyer (or a
Person designated by Buyer), whichever is later, other than the Group Companies’ Business, the
Seller and the Seller’s Shareholder will not directly or

 

 

indirectly engage or invest (other than
investments of less than 2% of the equity securities of any company listed on a domestic or
foreign securities exchange) in any Competitive Business.

     (b) the Seller and the Seller’s Shareholder agree that for a period of (i) four (4)
years following the Purchase Closing Date and (ii) two (2) year following the termination or
expiration of the Service Agreement entered into between the Seller and Buyer (or a Person
designated by Buyer), whichever is later, the Seller and the Seller’s Shareholder shall not, and
shall cause its Affiliates not to, solicit, recruit or hire any person who at any time on or
after the date of this Agreement is an employee of the Group Companies.

     (c) The Buyer hereby agrees that, within four (4) years from the Purchase Closing
Date, the Buyer shall not acquire the company with the same business as Sanwei Advertisement
(i.e. the agency, design, manufacture, dissemination of film advertisement), except for: (1) the
company acquired becoming the subsidiary of Sanwei Advertisement after restructure; (2) with
contents from the Seller and Seller’s shareholder.

     (d) Each of the parties hereto acknowledges and agrees that the remedy at Law for any
breach of the requirements of this Section 5.04 would be inadequate, and agrees and consents
that without intending to limit any additional remedies that may be available, temporary and
permanent injunctive and other equitable relief may be granted without proof of actual damage or
inadequacy of legal remedy.

          5.05 Working Capital Loans. The Buyer hereby undertake that: upon the execution of
this Agreement, the Buyer or any third party appointed by the Buyer shall provide Sanwei
Advertisement with a loan credit with the highest amount of RMB 15 Million. Upon Sanwei
Advertisement’s application, the Buyer or the said third party shall execute a Working Capital Loan
Agreement with Sanwei Advertisement, in which the annual interest rate shall be 6% and the term
shall be one year. Such loan shall be paid to an escrow account supervised by both of Sanwei
Advertisement and the Buyer/the said third party and shall only be used as the pre-film
advertisements lease fees and supplementing the operation fund of Sanwei Advertisement, provided
that the loan using for supplementing the operation fund of Sanwei Advertisement is not exceeding
RMB 4 million.

          5.06 Establishment of the Wholly-Foreign Owned Enterprise.

          The Seller and the Seller’s Shareholder undertake that prior to the Purchase Closing Date: (1)
cause the Company to establish a wholly-foreign owned enterprise in Beijing (the issuance of the
Business License shall be deemed to be the completion of the establishment), in which the Company
holds all the equity of interest; (2) such wholly-foreign
owned enterprise, Sanwei Advertisement and its shareholders shall entered into a series of
Controlling Agreements in accordance with the form set forth in Exhibit 5.06, which is valid,
binding and enforceable.

          5.07 Equity Transfer Agreement. The Seller and the Seller’s Shareholder undertake
that, prior to the Purchase Closing Date, the Seller and the Seller’s Shareholder will cause both
Sanwei Advertisement’s shareholders (Zhang Qingyong and Wang Yongmei)

 

 

to enter into Share Transfer
Agreement with the company or individual appointed by the Buyer in accordance with the form set
forth in Exhibit 5.07, which stipulates that Zhang Qingyong and Wang Yongmei shall once in a time
transfer 70% of the equity interest they held in Sanwei Advertisement to the company or individual
designated by the Buyer. The formalities of the alteration of registration of the above share shall
be completed with 15 days of the Purchase Closing Date.

          Moreover, the Seller and the Seller’s Shareholder undertake that, with respect to the
individual shareholders (Zhang Qingyong and Wang Yongmei)who is still holding 30% equity interest
in Sanwei Advertisement after the execution of the aforesaid transaction, if all or part of those
30% equity interest is to be transferred, the companies or individuals appointed by the Buyer shall
have the priority right of purchase; the issues agreed above shall be incorporated into articles of
association of Sanwei Advertisement’s.

          5.08 Key Management Independence.

     (a) The Buyer agrees that it shall, during the period commencing from the Purchase Closing
Date and ending on August 31, 2009, take all actions necessary and appropriate to enable the Key
Management to continue to run the Group Companies as an independent business unit of the Buyer,
provided that the Key Management’s ability to operate the Group Companies as an independent
business unit shall be subject to (i) the compliance with the Buyer’s code of ethics; (ii) any
relevant requirements of the Sarbanes-Oxley Act and other U.S. securities laws and regulations;
and (iii) no Employee’s Misconduct on the part of Key Management. In addition, the Group
Companies is entitled to dismiss any of the current management because of his/her misconduct.

     (b) If there is any Employee’s Misconduct on the part of the member of Key Management, the
Buyer is entitled to cause the Group Companies to dismiss such member of Key Management
immediately and the Group Companies shall act in accordance with the request.

     5.09 The Seller and the Seller’s Shareholder undertake that the following matters shall
be finalized before the Purchase Closing Date:

     (a) Sanwei Advertisement has repaid all his credits to its shareholder and there is no
Related Parties Transaction between Sanwei Advertisement and its shareholder.

     Related Parties Transaction means transactions concerning the resources and
liabilities between Sanwei Advertisement and its shareholder, including: purchase or sale
the assets, investments (money management by mandate and loan by mandate
included), financial supports, guarantees, assets lease, assets management, assets
donation, credits and/or liabilities re-arrangements, signing the licenses agreements, the
transfer of the research and development projects, the purchase of raw material, fuel and
power, products selling, labor relationship, marketing activities, joint venture
investments, and any other agreements/transactions which may course the transfer of
resources and liabilities.

 

 

     (b) All the agreements and/or contracts regarding the operation and distribution of
Changchun Branch entered by and between Sanwei Advertisement Changchun Branch and Mr. Han
Sheng (the director of Sanwei Advertisement Changchun Branch) shall be terminated; or
Changchun Branch shall be under the liquidation formalities in accordance with the law. The
potential legal risks of Sanwei Advertisement Changchun Branch shall be eliminated.

          5.10 The Seller Parties shall cause the Company to provide evidence satisfactory to
Buyer that the Group Companies’ total liabilities, including without limitation any debt, loan,
other debts (potential dispute, unpaid taxes due, etc.), shareholder loans and other account
payable as of the Purchase Closing Date shall not exceed the Group Companies’ accounts
receivable, cash, inventory and pre-payments as of the same date.

          5. 11 Management Accounts.

          Commencing from the Purchase Closing Date until August 31, 2009:

          (a) The Buyer, the Seller and the Seller’s Shareholder agree to cause the Company to
provide the management accounts of the Company with respect to each calendar month, which shall
be prepared in accordance with U.S. GAAP and in accordance with the accounting methods
satisfactory to the Buyer. The Company shall provide to the Buyer and the Seller the monthly
management accounts for the period by August 31, 2009 and such management accounts shall be
provided no later than ten (10) calendar days from the close of the previous month.

          (b) The Buyer, the Seller and the Seller’s Shareholder agree to cause the Company to
provide the management accounts of the Company with respect to each calendar quarter. The
Company shall provide the quarterly management accounts for the period by August 31, 2009 to
the Buyer and the Seller and such management accounts shall be provided no later than five (5)
calendar days from the close of the previous quarter.

          (c) Company shall appoint Approved Accounting Firm to review the quarterly management
accounts described in paragraph (b) above.

          (d) If the Buyer or the Seller disagrees with the audited quarterly management accounts,
the disagreed party shall give notice to the other party within five (5) business day upon the
acceptance of such quarterly management accounts. The Parties shall consult with each other
with respect to the quarterly management accounts. If no consensus with respect to the
quarterly management accounts can be reached within ten (10) business days upon the issuance of
the notice for the disagreement, the two parties
shall jointly appoint another international accounting firm to review the quarterly
management. The result of its review shall be final and binding to each party. The auditing
fees shall be equally born by the two parties. For the avoidance of doubt, the auditing of such
accounting firm shall be only for the purpose of confirming the appraised annual net income of
the Company as stipulated in Article II, and shall have no relation to the figures in the
management accounts publicly announced by the Buyer.

 

 

          5.12 Appointment of Management.

          The Seller agrees to authorize Buyer to appoint a vice-financial controller for the Company
and Sanwei Advertisement on or following the Purchase Closing Date.

          5.13 Confidentiality.

          Each party hereto shall keep confidential, and shall cause its officers, directors, and
employees to keep confidential, the terms and conditions hereof, of any predecessor agreement and
of any Ancillary Document (collectively, the “Confidential Information”) except as Buyer
and Seller mutually agree otherwise; provided that any party may disclose Confidential Information
(i) to the extent advised by competent legal advisors that such disclosure is required by
applicable Law and so long as, where such disclosure is to a Governmental Authority, such party
shall use all reasonable efforts to obtain confidential treatment of the Confidential Information
so disclosed, (ii) to the extent required by the rules of any stock exchange, (iii) to its
officers, directors, employees and professional advisors as necessary to the performance of its
obligations in connection herewith and with the Ancillary Documents so long as such party advises
each Person to whom the Confidential Information is so disclosed as to the confidential nature
thereof, and (iv) to its investors and any Person otherwise providing substantial debt or equity
financing to such party so long as the party advises each Person to whom the Confidential
Information is so disclosed as to the confidential nature thereof.

          5.14 Announcement.

          Without the violation of the law applicable to the Buyer, the commencing time for the
announcement with respect to the transaction under this Agreement shall be the date of this
Agreement. The Announcement shall be sent by the Buyer to the Seller for review in advance and
shall be agreed by both Parties.

ARTICLE VI

CONDITIONS TO THE SELLER’ OBLIGATIONS

          The obligation of the Seller to effect a Closing under this Agreement as specified below is
subject to the satisfaction, at or prior to the Purchase Closing Date, of each of the following
conditions, unless validly waived in writing by Seller.

          6.01 Representations and Warranties. Unless otherwise provided or expected by this
Agreement, the representations and warranties made by Buyer in this Agreement shall
be true and correct (in all material respects, in the case of those representations and
warranties which are not by their express terms qualified by reference to materiality) as of the
date of this Agreement and as of the Purchase Closing Date, except for changes permitted or
contemplated by this Agreement.

          6.02 Performance. Buyer shall have performed and complied in all material respects
with all agreements and obligations required by this Agreement and the Ancillary

 

 

Documents to be so
performed or complied with by it prior to the Purchase Closing Date.

          6.03 No Material Adverse Change. Since the date hereof until the Purchase Closing
Date, there shall not have been any effect or change that would be materially adverse to the
business, assets, condition (financial or otherwise), operating results, or operations of Buyer and
its subsidiaries, taken as a whole, or to the ability of Buyer to timely consummate the transaction
contemplated by this Agreement or by any of the Ancillary Documents.

          6.04 Injunction. At the Purchase Closing Date, there shall not be in effect any Law
or Governmental Order directing that the transactions provided for herein not be consummated as
provided herein or which has the effect of rendering it impossible to consummate such transactions.

ARTICLE VII

CONDITIONS TO BUYER’S OBLIGATIONS

          The obligation of the Buyer to effect a Closing under this Agreement as specified below is
subject to the satisfaction, at or prior to the Purchase Closing Date, of each of the following
conditions, unless validly waived in writing by Buyer.

          7.01 The representations and warranties made by the Seller and the Seller’s Shareholders
in this Agreement shall be true and correct (in all material respects, in the case of those
representations and warranties which are not by their express terms qualified by reference to
materiality) as of the date of this Agreement and as of the Purchase Closing Date.

          7.02 The Seller shall have performed and complied in all material respects with all
agreements and obligations required by this Agreement and the Ancillary Documents to be so
performed or complied with by it prior to the Purchase Closing Date.

          7.03 Proceedings and Documents. All corporate and other proceedings in
connection with the transactions contemplated at the Purchase Closing Date, and all documents
incident thereto, shall be in form and substance reasonably satisfactory to Buyer, and Buyer shall
have received all such counterpart original and certified or other copies of such documents as
Buyer may reasonably request.

          7.04 The consents, waivers, approvals or other authorizations involved in
the transaction of this Agreement shall have been obtained by Seller or otherwise satisfied
and shall continue to be in effect, including all consents of any competent Governmental Authority
or, under any of the Ancillary Documents or under other agreements to be entered into in connection
herewith.

          7.05 No Material Adverse Change. From the date of this Agreement until the
Purchase Closing Date, there shall not have been any Material Adverse Change to the

 

 

financial
condition and the assets of the Group Companies.

          7.06 No Indebtedness. As of the Purchase Closing Date, the Seller will have
taken such action, or caused the Group Companies to take such action, and provided to Buyer
documentation satisfactory to Buyer, evidencing that none of the Group Companies has any
outstanding indebtedness of any kind, including without limitation, any loan to Seller or Seller’s
Shareholder, bank loan or credits or unpaid liability relating to the Acquisitions.

          7.07 Share Transfer Agreement. Prior to the Purchase Closing Date, both Sanwei
Advertisement’s shareholders (Zhang Qingyong and Wang Yongmei) have entered into Share Transfer
Agreement with the company or individual appointed by the Buyer in accordance with the form set
forth in Exhibit 5.07, which stipulates that Zhang Qingyong and Wang Yongmei shall once in
a time transfer 70% of the equity interest they held in Sanwei Advertisement to the company or
individual designated by the Buyer.

          7.08 Prior to the Purchase Closing Date, Sanwei Advertisement has repaid all loan
borrowed from its shareholders and no Related Parties Transaction exist between Sanwei
Advertisement and its shareholders. The definition of Related Parties Transactions is the same as
defined in Section 5.09.

          7.09 Prior to the Purchase Closing Date, Key Management shall execute a Service Agreement,
and each employees of the Group Company shall execute an Employee Non-Compete Agreement in
accordance with the form as set forth in Exhibit 7.09, which agreement is in full force and
effect.

          7.10 Prior to the Purchase Closing Date, the Buyer shall have received the audited
financial statements of the Group Companies for the period from January 2005 to June 2006, which
shall be substantially complete in all material respects and contain key financial data reasonably
acceptable to Buyer.

          7.11 Prior to the Purchase Closing Date: (1) cause the Company to establish a wholly-foreign
owned enterprise in Beijing (the issuance of the Business License shall be deemed to be the
completion of the establishment), in which the Company holds all the equity of interest; (2) such
wholly-foreign owned enterprise, Sanwei and its shareholders shall entered into a series of
Controlling Agreements in accordance with the form set forth in Exhibit 5.06, which is
valid, bind and enforceable.

          7.12 Seller’s Corporate Documents. On or prior to the Purchase Closing Date, each
of the Seller Corporate Documents shall have been entered into and consummated by the Seller and
Seller’s Shareholder and is in full force and effect.

          7.13 Management Appointment. Seller shall have authorized Buyer to appoint the
financial controller for the Company and the Group Companies.

          7.14 Prior to the Purchase Closing Date, all the agreements and/or contracts regarding the
operation and distribution of Changchun Branch entered by and between Sanwei Advertisement
Changchun Branch and Mr. Han Sheng (the director of Sanwei Advertisement Changchun Branch) shall be
terminated; or Changchun Branch shall be under the liquidation formalities in accordance with the
law. The potential legal risks of Sanwei Advertisement Changchun Branch shall be eliminated.

 

 

          7.15 Prior to the Purchase Closing Date, Shenzhen Yangshi Sanwei shall become the subsidiary
of Sanwei Advertisement, i.e. at least 90% equity interest in Shenzhen Yangshi Sanwei shall be held
by Sanwei Advertisement and the remaining 10% equity interest in Shenzhen Yangshi Sanwei shall be
held by the Seller’s Shareholder.

          7.16 The Seller Parties has caused the Company to provide evidence satisfactory to Buyer that
the Group Companies’ total liabilities, including without limitation any debt, loan, other debts
(potential dispute, unpaid taxes due, etc.), shareholder loans and other account payable as of the
Purchase Closing Date shall not exceed the Group Companies’ accounts receivable, cash, inventory
and pre-payments as of the same date.

          7.17
Corporate Matters; Memorandum and Articles of Association. On or prior to the Purchase Closing Date, Seller shall have provided documentation to Buyer’s
reasonable satisfaction evidencing that (i) all shares of Company are ordinary shares, (ii) all
outstanding options (if any) of Company have been cancelled, (iii) the memorandum and articles of
association of Company has been converted to a standard British Virgin Islands form (using the
standard form of Offshore Incorporations Limited) which has no preferred shares or protective
provisions for investors provided therein and filed and registered with the British Virgin Islands
Companies Registry.

          7.18 Opinions of Counsel. As of the Purchase Closing Date, Buyer shall have
received from PRC counsel written opinions in form and substance satisfactory to Buyer.

          7. 19 Material Adverse Change. On or after the date hereof and prior to the
Purchase Closing Date, there shall not have occurred any of the following: (A) a suspension or
material limitation in trading in securities generally on the NASDAQ National Market, (B) a
suspension or material limitation in trading in Buyer’s securities on the NASDAQ National Market,
(C) a general moratorium on commercial banking activities in New York, the PRC or the British
Virgin Islands declared by the relevant authorities, or a material disruption in commercial banking
or securities settlement or clearance services in the United States, the PRC or the British Virgin
Islands, (D) the outbreak or escalation of hostilities involving the United States, the PRC or the
British Virgin Islands or the declaration by the United States, the PRC or the British Virgin
Islands of a national emergency or war or (E) the occurrence of any other calamity or crisis or any
change in financial, political or economic conditions or currency exchange rates or controls in the
United States, the PRC, the British Virgin Islands or elsewhere, if the effect of any such event
specified in clause (D) or (E) in the judgment of Buyer makes it impracticable or inadvisable to
proceed with the transaction contemplated in this Agreement and the Ancillary Documents.

          7.20 Injunction. On the Purchase Closing Date, there shall not be in effect any
Law or Governmental Order directing that the transactions provided for herein not be consummated as
provided herein or which has the effect of rendering it impossible to
consummate such transactions.

ARTICLE VIII

TERMINATION

          8.01 Termination. This Agreement may be terminated at any time prior to

 

 

the Purchase Closing Date:

	 	(a)	 	by the mutual written consent of the Seller and the Buyer;
	 
	 	(b)	 	by either the Seller or the Buyer if any Governmental
Authority of competent jurisdiction shall have issued an order, decree or
ruling or taken any other action restraining, enjoining or otherwise
prohibiting the transactions contemplated hereby and such order, decree or
ruling or other action shall have become final and non-appealable;
	 
	 	(c)	 	by Buyer, if Seller breach or fail to perform in any
respect any of their representations, warranties or covenants contained in
this Agreement or any Ancillary Document and such breach or failure to
perform (A) would give rise to the failure of a condition set forth in
Article VII; or (B) cannot be or has not been cured within 15 business days
following written notice of such breach or failure to perform; and relevant
claim rights have not been waived by Buyer.
	 
	 	(d)	 	by Seller, if Buyer breaches or fails to perform in any
respect any of its representation, warranties or covenants contained in this
Agreement or any Ancillary Document and such breach or failure to perform (A)
would give rise to the failure of a condition set forth in Article VI, (B)
cannot be or has not been cured within 15 business days following written
notice of such breach or failure to perform; and relevant claim rights have
not been waived by Seller.

          8.02 Procedure and Effect of Termination.

          In the event of the termination of this Agreement and the abandonment of the transactions
contemplated hereby pursuant to Section 8.01 hereof, written notice thereof shall forthwith be
given to all other parties. If this Agreement is terminated and the transactions contemplated by
this Agreement are abandoned as provided herein:

	 	(a)	 	The Buyer will redeliver to the Seller all documents, work
papers and other material of any the Seller relating to the transactions
contemplated hereby, whether so obtained before or after the execution
hereof;
	 
	 	(b)	 	The provisions of the Confidentiality Agreements shall
continue in full force and effect; and,
	 
	 	(c)	 	No party to this Agreement will have any liability under
this Agreement to any other except (i) that nothing herein shall relieve any
party from any liability for any willful breach of any of the
representations, warranties, covenants and agreements set forth in this
Agreement, and (ii) as contemplated by paragraph (b) above.

 

 

          8.03 Liquidated Damages.

          During the period from the date of this Agreement to the Purchase Closing Date, either the
Seller or the Buyer terminating this Agreement unilaterally with no reasonable excuse, or delaying
the performance of its obligations under this Agreement, which cause this Agreement unenforceable,
shall be responsible for paying the other party an amount of liquidated damages as for USD 3
Million. Such liquidated damages shall be paid in the form of cash or the shares of the listed
company.

          8.04 Force Majeure.

          (a) If Force Majeure occurs in the period from the date of this Agreement to the Purchase
Closing Date, either party is entitled to terminate this Agreement unilaterally without any
liability of breach. The Force Majeure expressed in this article shall cover all the events which
lead to the non-enforcement of this Agreement by either party. Such events, which cannot be imputed
to any party and are unforeseeable, unavoidable and insurmountable, shall include but not limit to
any strike, shutdown of the factory, explosion, shipwreck, natural disasters or hostility, fire,
flood, destruction, incidental affairs, war, insurgence, rebellion, interruption of traffic or
other similar affairs and the promulgation of the relevant regulations regarding the movie pre-film
advertisement or the circular adopted by the State Administration of Radio Film and Television,
which render the initial business purpose of the Group Company unrealizable or the daily business
of the Group Company not being normally operative.

          (b) If Force Majeure occurs during the Purchase Closing Date and August 31, 2009, and the
Force Majeure renders the business of Group Company being non-operative, the calculation of the Net
Incomes of the relevant year shall deduct the costs and the profits generated during the period of
the Force Majeure; at the same time, the deadline of the relevant accounting year shall be
accordingly extended. The period extended shall be as long as the period of the Force Majeure. The
Force Majeure expressed in this article shall refer to strike, shutdown of the factory, explosion,
shipwreck, natural disasters or hostility, fire, flood, destruction, incidental affairs, war,
insurgence, rebellion, interruption of traffic or infective viral affairs.

ARTICLE IX

INDEMNIFICATION

          9.01 Indemnification.

          (a) Indemnification by the Seller and Seller’s Shareholder

          (i) Subject to the limits set forth in this Section 9.01, after the Purchase Closing Date,
the Seller agree to indemnify the Buyer, its Affiliates (including, after the Purchase Closing
Date, the Group Companies) and its respective officers,
directors, stockholders, employees, agents and representatives (the “Buyer Indemnified
Persons”) harmless from and in respect of any and all losses, damages, costs and reasonable
expenses (collectively, “Losses”). The Seller’s aggregate liability for such Losses
shall not exceed USD 2 Million, and the Seller shall at the same time return to the Buyer the
Deposit previously paid by the Buyer, provided, however, that where such Losses are the result
of the gross negligence or willful misconduct of any of the Key Management, the aggregate
liability of the such Losses shall not exceed the Value of the

 

 

Aggregate Consideration paid by
the Buyer. The representations and warranties of the Seller set forth in Article III of this
Agreement shall survive for a period of three (3) years immediately following the Purchase
Closing Date (the “Indemnity Period”).

          (ii) Subject to the limits set forth in this Section 9.01, after the Purchase Closing
Date, the Seller’s Shareholders agree to indemnify the Buyer Indemnified Persons harmless from
and in respect of any and all Losses that they may incur arising out of or due to any breach
any of the representations or warranties of Article III, provided, however that Seller’s
Shareholder liability for such Losses shall in no event exceed USD 2 Million and shall at the
same time return to the Buyer the Deposit previously paid by the Buyer. The representations and
warranties of the Seller’s Shareholders set forth in Article III of this Agreement shall
survive for the Indemnity Period.

          (b) Indemnification by the Buyer.

          Subject to the limits set forth in this Section 9.01, after the Purchase Closing Date,
Buyer agrees to indemnify the Seller and its Affiliates and its respective officers, directors,
stockholders, employees, agents and representatives (the “Seller Indemnified Persons”)
harmless from and in respect of any and all losses, damages, costs and reasonable expenses
(collectively, “Losses”), provided, however, that the Losses that Seller may obtain in
accordance with the section hereof shall not exceed USD 2 Million, unless otherwise agreed in
this Agreement. The representations and warranties of the Buyer set forth in Article IV of this
Agreement shall survive for a period of six (6) months immediately following the Purchase
Closing Date.

          (c) Indemnification as Exclusive Remedy

          The indemnification provided in this Section 9.01, subject to the limitations set forth
herein, shall be the exclusive remedy available to any party in connection with any Losses
arising out of or resulting from this Agreement, the transactions contemplated hereby, any
property owned, based or subleased by any of the Group Companies or otherwise regarding any of
the Group Companies.

          (d) Notice and Opportunity to Defend

          If there occurs an event which a party asserts is an indemnifiable event pursuant to
Section 9.01, the party or parties seeking indemnification shall notify the other party or
parties obligated to provide indemnification (the “Indemnifying Party”) promptly. If
such event involves any claim or the commencement of any action or proceeding by a third
person, the party seeking indemnification will give such Indemnifying Party prompt written
notice of such claim or the commencement of such
action or proceeding; provided, however, that the failure to provide prompt notice as
provided herein will relieve the Indemnifying Party of its obligations hereunder only to the
extent that such failure prejudices the Indemnifying Party hereunder. In case any such action
shall be brought against any party seeking indemnification and it shall notify the Indemnifying
Party of the commencement thereof, the Indemnifying Party shall be entitled to assume the
defense thereof, with counsel selected by the Indemnifying Party and, after notice from the
Indemnifying Party to such party or parties seeking

 

 

indemnification of such election so to
assume the defense thereof, the Indemnifying Party shall not be liable to the party or parties
seeking indemnification hereunder for any legal expenses of other counsel or any other expenses
subsequently incurred by such party or parties in connection with the defense thereof. The
Indemnifying Party and the party seeking indemnification agree to cooperate fully with each
other and their respective counsel in connection with the defense, negotiation or settlement of
any such action or asserted liability. In no event shall an Indemnifying Party be liable for
any settlement effected without its written consent.

ARTICLE X

MISCELLANEOUS

          10.01 Notices. Any notice, demand, or communication required or permitted to be
given by any provision of this Agreement shall be deemed to have been sufficiently given or served
for all purposes if (i) personally delivered, (ii) sent by a nationally recognized overnight
courier service to the recipient at the address below indicated or (iii) delivered by facsimile
which is confirmed in writing by sending a copy of such facsimile to the recipient thereof pursuant
to clause (i) or (ii) above:

If to the Seller:

EFG Partners Limited

Add: 3-32A, No.45, Xiao Guan Bei Li, Chaoyang District, Beijing

Attn: Zhang Qingyong

Tax: 010-84898825-111; 13601119996

Fax: 010-84898825-112

If to the Buyer:

FOCUS MEDIA HOLDING LIMITED

Add: Floor 28, No. 369 Jiangsu Road, Changning District, Shanghai,

Attn: Jason Nanchun Jiang

Tel: 021-32124661

Fax: 021-52400228

If to the Company:

Appreciate Capital Ltd

Add: 3-32A, No.45, Xiao Guan Bei Li, Chaoyang District, Beijing

Attn: Zhang Qingyong

Tax: 010-84898825-111; 13601119996

Fax: 010-84898825-112

 

 

If to any of the Seller’s Shareholder:

Add: 3-32A, No.45, Xiao Guan Bei Li, Chaoyang District, Beijing

Attn: Zhang Qingyong

Tax: 010-84898825-111; 13601119996

Fax: 010-84898825-112

or to such other address as any party hereto may, from time to time, designate in a written notice
given in like manner.

          10.02 Fees and Expenses. The Seller, the Seller’s Shareholders and the Buyer shall
bear their own taxes and government’s charges which in connection with this Agreement or the
transaction herein respectively. Attorney fees and audit fees in connection with the transaction
herein shall be born by the Seller, which shall not exceed RMB 300,000 (such attorney fees and
audit fees shall be paid to the law firms and audit firms with 15 business days after the Purchase
Closing Date). The part exceed RMB 300,000 shall be born by the Buyer.

          10.03 Governing Law. This Agreement shall be construed under and governed by the
Laws of Hong Kong Special Administration Region.

          10.04 Dispute Resolution.

          (a) Any dispute, controversy or claim arising out of or relating to this Agreement, or the
interpretation, breach, termination or validity hereof, shall be resolved through consultation.
Such consultation shall begin immediately after one party hereto has delivered to any other party
hereto a written request for such consultation.

          (b) If within 90 days following the date on which such notice is given the dispute cannot be
resolved, the dispute shall be submitted to arbitration upon the request of either party with
notice to the other. The arbitration shall be conducted in Hong Kong under the auspices of the Hong
Kong International Arbitration Centre (the “ HKIAC”).

          (c) The arbitration tribunal shall consist of three arbitrators. Each opposing party to a
dispute shall be entitled to appoint one arbitrator, and the third arbitrator shall be jointly
appointed by the other appointed arbitrators. The third arbitrator shall be the chief arbitrator.

          (d) The arbitration proceedings shall be conducted in English and Chinese. The award of the
arbitration tribunal shall be final and binding upon the disputing parties. Either party shall be
entitled to seek preliminary injunctive relief from any court of competent jurisdiction pending the
constitution of the arbitral tribunal. And the prevailing party may apply to the arbitration
tribunal for recovering all the expenses (including reasonable attorney fees and other arbitration
costs).

          10.05 Counterparts. This Agreement may be executed in one or more counterparts, all
of which shall be considered one and the same agreement and each of which shall be deemed an
original.

          10.06 Amendment. This Agreement may not be amended, modified or supplemented except
upon the execution and delivery of a written agreement executed by the parties hereto.

 

 

          10.07 Waiver. Any of the terms or conditions of this Agreement which may be
lawfully waived may be waived in writing at any time by each party which is entitled to the
benefits thereof. Any waiver of any of the provisions of this Agreement by any party hereto shall
be binding only if set forth in an instrument in writing signed on behalf of such party. No failure
to enforce any provision of this Agreement shall be deemed to or shall constitute a waiver of such
provision and no waiver of any of the provisions of this Agreement shall be deemed to or shall
constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

          10.08 Assignment. No Party may assign its rights or obligations under this
Agreement without the prior written consent of each other party and any purported assignment
without such consent shall be void and without effect.

          10.09 Entire Agreement. This Agreement contains the entire understanding of the
parties with respect to the transaction hereof and thereof and supersedes all prior agreements and
understandings, both written and oral, between the parties with respect to the transaction hereof
and thereof.

          10.10 Further Assurances. Each Party shall execute all such documents and do all
such Other things within its power as may be required to give full effect to the terms of this
Agreement or to vest in any other Party its full rights and entitlements hereunder.

          10.11 Provisions Severable. If any provision of this Agreement is held to be illegal,
invalid Or unenforceable under any present or future law, (i) such provision will be fully
severable, (ii) this Agreement will be construed and enforced as if such illegal, invalid or
enforceable provision had never comprised a part hereof, and (iii) the remaining provisions of this
Agreement will remain in full force and effect and will not be affected by the illegal, invalid and
unenforceable provision or by its severance herefrom, it being intended that the rights of the
Parties hereunder shall be enforceable to the fullest extent permitted by law.

          10.12 Provisions Modifiable. If any restriction on any Party hereunder shall be
adjudged to be void or unenforceable because it exceeds what is reasonable in all the circumstances
for the protection of the interests of the Parties or any of them but would be valid if part of the
wording thereof were deleted or the periods thereof reduced or range of activities or area dealt
with thereby reduced in scope, such restriction shall apply with such modifications as may be
necessary to make it valid and effective.

          10.13 Headings. The headings contained in this Agreement are for reference only and
shall not affect in any way the meaning or interpretation of this Agreement.

          10.14 Language. This Agreement was written in Chinese.

[The rest is left blank]

 

 

[Execution Page]

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in each
case as of the date first above written.

	 	 	 	 	 	 	 	 	 
	EFG Partners Limited	 	FOCUS MEDIA HOLDING LIMITED	 	 
	 
	 	 	 	 	 	 	 	 
	Sign:

	 	 	 	Sign:	 	 	 	 
	 

	 	/s/ Zhang Qingyong
	 	 	 	/s/ Jason Nanchunag Jiang	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Zhang Qingyong
	 	 	 	Name: Jason Nanchun Jiang	 	 
	 

	 	Post: Executive Director
	 	 	 	Post: Chairman	 	 
	 
	 	 	 	 	 	 	 	 
	Appreciate Capital Ltd.	 	SELLER’S SHAREHOLDER	 	 
	 
	 	 	 	 	 	 	 	 
	Sign:

	 	 	 	Sign:	 	 	 	 
	 

	 	/s/ Zhang Qingyong
	 	 	 	/s/ Zhang Qingyong	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Zhang Qingyong
	 	 	 	Zhang Qingyong	 	 
	 

	 	Post: Executive Director	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Sign:	 	 	 	 
	 

	 	 	 	 	 	/s/ Wang Yongmei	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Wang Yongmei	 	 

 

 

Schedules

	 	 	 
	Schedule 1.1

	 	List of the Member of Group Company
	Schedule 1.5

	 	Controlling Agreements
	Schedule 1.6

	 	Ancillary Document
	Schedule 3.04

	 	Share Capital of Company
	Schedule 3.05

	 	Group Companies Information
	Schedule 3.09

	 	List of Group Companies’ Licenses, Consents, Authorizations,
Approvals, and Permits
	Schedule 3.17

	 	Material Contracts

Exhibits

	 	 	 
	Exhibit 5.06

	 	Form of Controlling Agreement
	Exhibit 5.07

	 	Form of Share Transfer Agreement
	Exhibit 7.09

	 	Form of Service Agreement and
Employee Non-Compete AgreementEX-10.159 REGISTRATION RIGHTS AGREEMENT

 

Exhibit 10.159

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of March 28,
2007 by and among Focus Media Holding Limited, a company with limited liability organized under the
laws of the Cayman Islands (the “Company”), each of
the Persons listed on Schedule A who represent certain
former shareholders, warrant holders and option holders (or entities controlled thereby) of Allyes
Information Technology Company Limited (“Allyes”), a company with limited liability organized under
the laws of the Cayman Islands (the “Allyes Holders” and, individually, an “Allyes Holder”).

RECITALS

     A.     The Allyes Holders have agreed to sell (or cancel, in the case of option holders and
warrant holders) all of their respective equity interests in Allyes to the Company, and as part of
the consideration, the Company has agreed to issue to each Allyes Holder, certain Ordinary Shares
(as defined below) of the Company on the terms and conditions set forth in that certain Share
Purchase Agreement dated as of February 28, 2007 (the “Allyes Purchase Agreement”) by and among the
Company, Allyes, the Allyes Holders and certain other parties thereto.

     B.      In connection with the consummation of the transactions contemplated by the Allyes Purchase
Agreement, the parties hereto desire to enter into this Agreement to enable the Allyes Holders from
time to time to register the Ordinary Shares that they receive pursuant to the Allyes Purchase
Agreement under the Securities Act (as defined below).

     C.      The Allyes Purchase Agreement provides that the execution and delivery of this Agreement by
the parties hereto shall be a condition precedent to the consummation of the transactions
contemplated thereunder.

     D.      The Company and the Allyes Holders seek to induce the Allyes Holders to consummate the
transactions contemplated in the Allyes Purchase Agreement, and to such ends, seek to satisfy the
conditions precedent to such transactions by entering into this Agreement.

 

 

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises hereinafter
set forth, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto further agree as follows:

SECTION 1 INTERPRETATION

     1.1      Definitions. Unless otherwise defined in this Agreement, capitalized terms used
in the English version of this Agreement shall have the following meanings:

     “Accounting Principles” means generally accepted accounting principles as applied in
the United States of America.

     “ADSs” means American depositary shares with each ADS as of the date of this Agreement
representing ten Ordinary Shares.

     “Affiliate” means, with respect to any given Person, a Person that Controls, is
Controlled by, or is under common Control with the given Person.

     “Agreement” has the meaning ascribed thereto in the preamble hereto.

     “Allyes Ancillary Documents” means this Agreement and the Allyes Lock-Up Agreements.

     “Allyes Holders” has the meaning ascribed thereto in the preamble hereof.

     “Allyes Lock-Up Agreements” means those certain Lock-Up Agreements, dated the date of
the closing of the transactions contemplated by the Allyes Purchase Agreement, by and among
the Company and each of the Allyes Holders.

     “Allyes Purchase Agreement” has the meaning ascribed thereto in the recitals hereof.

     “Allyes Registrable Securities” means (i) the Ordinary Shares received or to be
received by the Allyes Holders pursuant to the Allyes Purchase Agreement, including any
Earn-Out Shares, (including any ADSs related thereto) and (ii) any Equity Securities of the
Company issued as (or issuable upon the conversion or exercise of any Ordinary Share
Equivalent) a dividend or other distribution with respect to, or in exchange for, or in
replacement of, the shares referenced in clause (i).

     “Applicable Securities Law” means (i) with respect to any offering of securities in the
United States of America, or any other act or omission within that jurisdiction, the
securities law of the United States, including the Exchange Act and the Securities Act, and
any applicable law of any State of the United States, and (ii) with respect to any offering
of securities in any jurisdiction other than the United States of America, or any related
act or omission in that jurisdiction, the applicable laws of that jurisdiction.

     “Business Day” means any weekday that the banks in the PRC, Hong Kong and the United
States of America are generally open for business.

 

 

     “Centre” has the meaning ascribed thereto in Section 4.3(c).

     “Commission” means (i) with respect to any offering of securities in the United States
of America, the Securities and Exchange Commission of the United States or any other federal
agency at the time administering the Securities Act, and (ii) with respect to any offering
of securities in a jurisdiction other than the United States of America, the regulatory body
of the jurisdiction with authority to supervise and regulate the sale of securities in that
jurisdiction.

     “Company” has the meaning ascribed thereto in the preamble hereto.

     “Control” means, when used with respect to any Person, the power to direct the
management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise, and the terms “Controlling” and
“Controlled” have meanings correlative to the foregoing.

     “Depositary” means the depositary in respect of the Company’s ADSs, currently Citibank,
N.A.

     “Disclosing Party” has the meaning ascribed thereto in Section 3.4.

     “Dispute” has the meaning ascribed thereto in Section 4.3(a).

     “Earn-Out Shares” means any Ordinary Shares issued at the Earnout Closing, as such term
is defined in the Allyes Purchase Agreement.

     “Equity Securities” means any Ordinary Shares, Ordinary Share Equivalents or other
voting securities of the Company.

     “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

     “First Closing Date” has the meaning ascribed in the Allyes Purchase Agreement.

     “Form F-1” means Registration Statement on Form F-1 promulgated by the Commission under
the Securities Act or any substantially similar form then in effect.

     “Form F-3” means Registration Statement on Form F-3 promulgated by the Commission under
the Securities Act or any substantially similar form then in effect.

     “Form S-1” means Registration Statement on Form S-1 promulgated by the Commission under
the Securities Act or any substantially similar form then in effect.

     “Form S-3” means Registration Statement on Form S-3 promulgated by the Commission under
the Securities Act or any substantially similar form then in effect.

     “Holders” means the Allyes Holders together with the permitted transferees and assigns
of any Holder.

     “Hong Kong” means the Hong Kong Special Administrative Region.

 

 

     “IDG” means IDG Technology Venture Investments, LP, IDG-Accel China Growth
Fund-A L.P., IDG-Accel China Growth Fund L.P. and IDG-Accel China Investors L.P.

     “Initiating Holders” means, with respect to a request duly made to Register any
Registrable Securities under Section 2.1(a), the Holders initiating such request.

     “Newco” means Magic Elite Group Ltd.

     “Oak” means Oak Investment Partners XI, Limited Partnership, a Delaware limited
partnership.

     “Ordinary Shares” means the ordinary shares, par value US$0.00005 per share, of the
Company.

     “Ordinary Share Equivalents” means warrants, options and rights exercisable for
Ordinary Shares and instruments convertible or exchangeable for Ordinary Shares.

     “Parties” has the meaning ascribed thereto in Section 4.

     “Person” means any natural person, corporation limited liability company, joint stock
company, joint venture, partnership, enterprise, trust, unincorporated organization or any
other entity or organization.

     “Registration” means a registration effected by preparing and filing a Registration
Statement and the declaration or ordering of the effectiveness of that Registration
Statement, and the terms “Register” and “Registered” have meanings correlative with the
foregoing.

     “Registrable Securities” means the Allyes Registrable Securities, excluding in all
cases, however, any Equity Securities sold by a Person in a transaction other than an
assignment pursuant to Section 4.1.

     “Registration Statement” means a registration statement prepared on Forms S-3, F-3, S-1
or F-1 under the Securities Act, or on any comparable form in connection with registration
in a jurisdiction other than the United States.

     “Securities Act” means the United States Securities Act of 1933, as amended.

     “Underwritten Offering” has the meaning ascribed in Section 2.1(a)(1)

     “Violation” has the meaning ascribed thereto in Section 2.6(a).

     1.2     Interpretation. For all purposes of this Agreement, except as otherwise expressly
herein provided, (i) the terms defined in Section 1 shall have the meanings assigned to them in
Section 1 and include the plural as well as the singular, (ii) all references in this Agreement to
designated “Sections” and other subdivisions are to the designated Sections and other subdivisions
of the body of this Agreement, (iii) pronouns of either gender or neuter shall include, as
appropriate, the other pronoun forms, (iv) the words “herein,” “hereof” and “hereunder” and other
words of similar import refer to this Agreement as a whole and not to any particular Section or
other subdivision, and (v) all references in this Agreement to

 

 

designated Schedules, Exhibits and Annexes are to the Schedules, Exhibits and Annexes attached
to this Agreement.

SECTION 2 REGISTRATION RIGHTS.

          2.1     Demand Registration Rights.

	 	(a)	 	Registration.

                     (1) Subject to the terms of this Agreement and the Allyes Lock-up Agreements, from time to
time and at any time, Holders holding 3,000,000 Ordinary Shares (as equitably adjusted for any
stock splits, stock dividends, recapitalizations, reorganizations or similar events) that are
Registrable Securities originally issued pursuant to the Allyes Purchase Agreement may request the
Company in writing to register Registrable Securities (a “Registration”); provided however, that
if a request for Registration is for an underwritten public offering (an “Underwritten Offering”),
such request shall be subject to the reasonable requirement that the reasonably anticipated
aggregate price to the public not to be less than US$40,000,000 and represents at least 3,000,000
Ordinary Shares (as equitably adjusted for any stock splits, stock dividends, recapitalizations,
reorganizations or similar events) that are Registrable Securities. Upon receipt of such a
request, the Company shall (i) promptly, and in any event within ten (10) Business Days after
receipt of such written request, give written notice of the proposed Registration to all other
Holders and (ii) use best efforts to cause, as soon as practicable, the Registrable Securities
specified in the request, together with any Registrable Securities of any Holder who requests in
writing to join such Registration within twenty (20) Business Days after the Company’s delivery of
written notice, to be Registered and/or qualified for sale and distribution to the public in such
jurisdictions as the Initiating Holders may reasonably request. Notwithstanding anything contrary
contained herein, the Company shall be not obligated to effect more than three (3) Registrations
pursuant to this Section 2.1(a)(1).

                     (2) Subject to the terms of this Agreement and the Allyes Lock-up Agreements, on a date at
least 150 days and no more than 330 days following the First Closing Date, Newco may request the
Company in writing to effect a Registration, which shall not be an Underwritten Offering (a “Newco
Registration”); provided however the Company shall not be obligated to effect such Newco
Registration if the Company has previously effected a Registration pursuant to Section 2.1(a)(1)
above. Upon receipt of such a request, the Company shall (i) promptly, and in any event within ten
(10) Business Days after receipt of such written request, give written notice of the proposed
Registration to all other Holders and (ii) use best efforts to cause, as soon as practicable, the
Registrable Securities specified in the request, together with any Registrable Securities of any
Holder who requests in writing to join such Registration within twenty (20) Business Days after the
Company’s delivery of written notice, to be Registered and/or qualified for sale and distribution
to the public in such jurisdictions as the Initiating Holders may reasonably request.
Notwithstanding anything contrary contained herein, the Company shall not be obligated to effect
more than one (1) Registration pursuant to this Section 2.1(a)(2).

                     (3) Any Registration made pursuant to this Section 2.1 shall be made (x) if available, on the
Company’s existing Registration Statement on Form F-3ASR or (y) in each case subject to the terms
of this Section 2.1(a)(3) below, (i) if such F-3ASR is not available, on another Registration
Statement on Form F-3 (or any successor to Form F-3 or Form S-3) if

 

 

such form is available for use by the Company or (ii) otherwise on Form F-1 or Form S-1 (or
any successor to Form F-1 or S-1) if such form is available for use by the Company. In the event
that the Company becomes ineligible to use its existing Registration Statement on Form F-3ASR for
the reasons set forth in Schedule 2.1(a)(3) hereto, the Company shall not be obligated to effect a
Registration until it regains eligibility to use Form F-3ASR.

                     (4) Any Registrable Securities that were registered but not distributed by a Holder pursuant
to a Registration other than an Underwritten Offering shall cease to be considered Registrable
Securities.

                     (b) Right of Deferral. Notwithstanding anything to the contrary in this Section 2.1:

                     (1) The Company shall not be obligated to Register or qualify Registrable Securities for an
Underwritten Offering pursuant to any of the provisions of
Section 2.1 if, (x) within the six (6) month period preceding the date of such request, the Company has
either (i) already effected a Registration for an Underwritten Offering under any of the provisions
of Section 2.1 or (ii) already effected a Registration (other
than a registration of securities in a transaction under Rule 145 of the Securities Act or with
respect to an employee benefit plan) in which the Holders had an opportunity to participate
pursuant to the provisions of Section 2.2 and no Registrable Securities of the Holders were
excluded from such Registration pursuant to the provisions of Section 2.2(c), or (y) within the
three (3) month period preceding the date of such request, the Company has already effected a
Registration other than an Underwritten Offering under any of the provisions of Section 2.1.

                     (2) The Company shall not be obligated to Register or qualify Registrable Securities pursuant
to Section 2.1 if the Company shall furnish to the Holders a
certificate signed by the Chief Executive Officer of the Company stating that, in the good faith
judgment of the Board of Directors of the Company, it would be materially detrimental to the
Company and its shareholders for a Registration Statement to be filed in the near future.
Following delivery of such certificate, the Company shall have the right to defer such filing for a
period not to exceed ninety (90) days from the receipt of any request duly submitted by Holders
under Section 2.1 or to Register Registrable Securities;
provided, however, that the Company shall not utilize this right more than once in any
twelve (12) month period.

                     (c)          Underwritten Offerings. If, in connection with a request to Register Registrable
Securities under the provisions of Section 2.1 (1), the Initiating
Holders seek to distribute such Registrable Securities through an Underwritten Offering, they shall
so advise the Company as a part of the request, and the Company shall include such information in
the written notice to the other Holders described in to
Section 2.1 (1). In such event, the right of any Holder to include its Registrable Securities in such
Registration shall be conditioned upon such Holder’s participation in such Underwritten Offering
and the inclusion of such Holder’s Registrable Securities in the Underwritten Offering (unless
otherwise mutually agreed by Initiating Holders representing a majority in voting power of the
Registrable Securities held by the Initiating Holders) to the extent provided herein. All Holders
proposing to distribute their securities through such Underwritten Offering shall enter into an
underwriting agreement in customary form with the underwriter or underwriters selected for such

 

 

Underwritten Offering by the Company (which underwriter or underwriters shall be reasonably
acceptable to Initiating Holders representing a majority in voting power of the Registrable
Securities held by the Initiating Holders). Notwithstanding any other provision of this Agreement,
if the managing underwriter advises the Company that marketing factors (including the aggregate
number of securities requested to be Registered, the general condition of the market, and the
status of the Persons proposing to sell securities pursuant to the Registration) require a
limitation of the number of Equity Securities to be underwritten, the underwriters may exclude such
number of Registrable Securities from the Underwritten Offering as required (i) after excluding any
other Equity Securities from the Underwritten Offering (including, without limitation, any Equity
Securities which the Company may seek to include in the Underwritten Offering for its own account)
and (ii) so long as at least thirty percent (30%) in voting power of any Registrable Securities
requested by the Holders to be included in such Underwritten Offering and Registration shall be
included. If a limitation of the number of Registrable Securities is required pursuant to this
Section 2.1(c), the number of Registrable Securities that may be included in the Underwritten
Offering by selling Holders shall be allocated among such Holders, in proportion, as nearly as
practicable, to the respective amounts of Registrable Securities which the Holders would otherwise
be entitled to include in the Registration. If any Holder disapproves of the terms of any
Underwritten Offering, the Holder may elect to withdraw therefrom by written notice to the Company
and the underwriters delivered at least ten (10) Business Days prior to the effective date of the
Registration Statement. Any Registrable Securities excluded or withdrawn from such underwriting
shall be withdrawn from the Registration.

     2.2      Piggyback Registrations.

                     (a)           Registration of the Company’s Securities. Subject to Section 2.2(c) and the terms
of the Allyes Lock-up Agreements, if the Company proposes to Register for its own account any of
its Equity Securities in connection with the public offering of such securities, the Company shall
promptly give each Holder written notice of such Registration and, upon the written request of any
Holder given within twenty (20) days after delivery of such notice, the Company shall use its best
efforts to include in such Registration any Registrable Securities thereby requested by such
Holder. If a Holder decides not to include all or any of its Registrable Securities in such
Registration by the Company, such Holder shall nevertheless continue to have the right to include
any Registrable Securities in any subsequent Registration Statement or Registration Statements as
may be filed by the Company with respect to offerings of its securities, all upon the terms and
conditions set forth herein.

                     (b) Right to Terminate Registration. The Company shall have the right to terminate or
withdraw any Registration initiated by it under Section 2.2(a) prior to the effectiveness of such
Registration, whether or not any Holder has elected to participate therein. The expenses of such
withdrawn Registration shall be borne by the Company in accordance with Section 2.3.

	 	(c)	 	Underwriting Requirements.

                     (1) In connection with any offering involving an underwriting of the Company’s Equity
Securities, the Company shall not be required to Register the Registrable Securities of a Holder
under this Section 2.2 unless such Holder shall include such Registrable Securities in the
underwriting and such Holder enters into an underwriting agreement in customary form with the
underwriters selected by the Company and setting

 

 

forth such terms for the underwriting as have been agreed upon between the Company and the
underwriters. Subject to Section 2.2(c)(2), in the event the underwriters advise Holders seeking
Registration of Registrable Securities pursuant to this Section 2.2 in writing that market factors
(including the aggregate number of Registrable Securities requested to be Registered, the general
condition of the market, and the status of the Persons proposing to sell securities pursuant to the
Registration) require a limitation of the number of Equity Securities to be underwritten, the
underwriters may exclude some or all Registrable Securities from the Registration and underwriting
after excluding any other Equity Securities from the underwriting (other than any Equity Securities
which the Company may seek to include in the underwriting for its own account), and the number of
Equity Securities and Registrable Securities that may be included in the Registration and the
underwriting shall be allocated (i) first, to the Company and (ii) thereafter, among the Holders
requesting inclusion of their Registrable Securities in such Registration Statement in proportion,
as nearly as practicable, to the respective amounts of Registrable Securities which the Holders
would otherwise be entitled to include in the Registration.

                     (2) Notwithstanding anything to the contrary in this Section 2.2 (c), in connection with any
offering involving an underwriting of the Company’s Equity Securities, in no event shall the
underwriters exclude any Registrable Securities which Holders may seek to include in such
Registration and underwriting under this Section 2.2 unless at least thirty percent (30%) in voting
power of any Registrable Securities requested by the Holders to be included in such underwriting
and Registration shall be included.

                     (3) If any Holder disapproves of the terms of any underwriting, the Holder may elect to
withdraw therefrom by written notice to the Company and the underwriters delivered at least seven
(7) days prior to the effective date of the Registration Statement. Any Registrable Securities
excluded or withdrawn from the underwriting shall be withdrawn from the Registration.

                     (d)          Exempt Transactions. The Company shall have no obligation to Register any
Registrable Securities under this Section 2.2 in connection with a Registration by the Company (i)
relating solely to the sale of securities to participants in a Company share plan, (ii) relating to
a corporate reorganization or other transaction under Rule 145 of the Securities Act (or comparable
provision under the laws of another jurisdiction, as applicable), or (iii) on any form that does
not include substantially the same information as would be required to be included in a
Registration Statement covering the sale of the Registrable securities.

     2.3      Expenses. All expenses incurred in connection with Registrations, filings or
qualifications pursuant to this Agreement, including, without limitation, (i) any underwriting,
brokerage or similar commissions, compensation, discounts or concessions paid or allowed by the
Company incurred or to be incurred by the Selling Shareholders in connection with such issue or
sale, (ii) all expenses of any Persons in preparing or assisting in preparing, word processing,
printing and distributing any Registration Statement, any Prospectus, any amendments or supplements
thereto, any underwriting agreements, securities sales agreements and other documents relating to
the performance of and compliance with this Agreement (excluding expenses or costs in respect of
Company employees in connection therewith) , (iii) all fees and expenses incurred in connection
with the listing, if any, of any of the Registrable Securities on any securities exchange or
exchanges, (iv) all fees and expenses of the Depositary relating to the deposit of the Registrable
Securities into the deposit facility and issuance by the Depositary of shares or receipts
representing such Registrable Securities,

 

 

(v) the fees and disbursements of counsel for the Company and of the independent public
accountants of the Company specifically related to such Registration, including the expenses of any
special audits or “comfort” letters required by or incident to such performance and compliance,
(vi) the fees and expenses of share registry or custodian, and (vii) the reasonable fees and
disbursements of counsel representing the Holders of Registrable Securities, (viii) all U.S.
federal, “blue sky” and all foreign registration, filing and qualification fees, accounting fees,
and fees and disbursements of counsel for the Company (but excluding underwriters’ discounts and
commissions relating to shares sold by the Holders), shall be borne by the Holders (allocated pro
rata based on the Registratable Securities included in such Registration); provided, however, that
(i) where an offering of securities includes a primary offering by the Company or a secondary
offering of securities by other shareholders of the Company other than the Holders, the Holders
shall be bear the pro rata portion of expenses attributable to them based on the number of
Registrable Securities included in such Registration (for the avoidance of doubt, any such fees or
expenses that are incurred entirely as a result of sales by selling shareholders shall be borne on
a pro rata basis with regard only to the Registrable Securities
offered by the Selling
Shareholders in the aggregate and not by the Company) and (ii) the Company shall use
commercially reasonable efforts to minimize the amount of such expenses and, in connection with any
Underwritten Offering, use commercial reasonable efforts to cause the related underwriters to pay
such expenses to the extent possible (other than any related brokerage or selling commission or
discount); provided, however, that the failure or unwillingness of the related underwriters to
agree to pay such expenses in whole or in part shall not affect the selling shareholders’
obligations to pay any expenses pursuant to this Section.

     2.4      Obligations of the Company. Subject to the provisions of Section 2.3 hereof,
whenever required to effect the Registration of any Registrable Securities under this Agreement the
Company, shall as expeditiously as reasonably possible:

                     (a)           Registration Statement. Use its reasonable best efforts to ensure that its
existing Registration Statement is Effective; provided, that the Company shall not be
required to keep any such Registration Statement effective for more than (i) one (1) year in the
case of a Registration Statement on Form S-3, F-3, F-3ASR or (ii) ninety (90) days in the case of a
Registration Statement on Form S-1 or F-1.

                     (b)           Amendments and Supplements. Prepare and file with the Commission such amendments
and supplements to such Registration Statement and the prospectus used in connection with such
Registration Statement as may be necessary to comply with the provisions of Applicable Securities
Law with respect to the disposition of all securities covered by such Registration Statement.

                     (c)           Prospectuses. Furnish to the Holders such number of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the Applicable
Securities Law, and such other documents as such Holders may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by them that are included in such
Registration.

                     (d)           Blue Sky. Use its best efforts to register and qualify the securities covered by
such Registration Statement under such other securities or Blue Sky laws of such jurisdictions as
shall be reasonably requested by the Holders, provided that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to file a general
consent to service of process in any such states or jurisdictions.

 

 

                     (e)           Underwriting. In the event of any Underwritten Offering, enter into and perform
its obligations under an underwriting agreement in usual and customary form, with the managing
underwriter(s) of such offering. Each Holder participating in such underwriting shall also enter
into and perform its obligations under such an agreement.

                     (f)           Notification. Notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is required to be delivered
under Applicable Securities Law of the happening of any event as a result of which the prospectus
included in such registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or necessary to make
the statements therein not misleading in the light of the circumstances then existing.

                     (g)           Opinion and Comfort Letter. In the event of any Underwritten Offering, furnish, at
the request of any Holder requesting Registration of Registrable Securities, on the date that such
Registrable Securities are delivered to the underwriter(s) for sale, if such securities are being
sold through underwriters, or, if such securities are not being sold through underwriters, on the
date that the Registration Statement with respect to such securities becomes effective, (i) an
opinion, dated as of such date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in an underwritten
public offering and reasonably satisfactory to a majority in interest of the Holders requesting
Registration, addressed to the underwriters, if any, and to the Holders requesting registration of
Registrable Securities and (ii) a “comfort” letter dated as of such date, from the independent
certified public accountants of the Company, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten public offering and
reasonably satisfactory to a majority in interest of the Holders requesting registration, addressed
to the underwriters, if any, and to the Holders requesting registration of Registrable Securities.

                     (h)           Transfer Agent and CUSIP. Provide a transfer agent and registrar for all
Registrable Securities Registered pursuant to the Registration Statement and, where applicable, a
CUSIP number for all those Registrable Securities, in each case not later than the effective date
of the Registration.

                     (i)           Further Actions. Take all reasonable action necessary to: (i) cause the
Depositary to accept the deposit of the Registrable Securities into the deposit facility to issue
ADSs (or receipts) representing such Registrable Securities and to issue the related ADRs; (ii)
cause the Depositary to register with the SEC (to the extent necessary) such ADSs; and (iii) list
the Registrable Securities on the primary exchange upon which the Company’s securities are traded.

     2.5      Obligations of Holders. It shall be a condition precedent to the obligations of
the Company to Register the Registrable Securities of any Holder pursuant to this Section 2 that
the selling Holder shall furnish to the Company such information regarding itself, the Registrable
Securities held thereby and the intended method of disposition of such securities as shall be
required to timely effect the Registration of such Holder’s Registrable Securities.

     2.6      Indemnification. In the event any Registrable Securities are included in a
registration statement under this Section 2:

 

 

                     (a)           Company Indemnity. To the extent permitted by law, the Company will indemnify and
hold harmless each Holder, its partners, officers, directors, legal counsel, accountants, any
underwriter (as defined in the Securities Act) for such Holder and each Person, if any, who
controls (as defined in the Securities Act) such Holder or underwriter against any losses, claims,
damages, or liabilities (joint or several) to which they may become subject under laws which are
applicable in connection with any Registration, qualification, or compliance, of the Company’s
securities insofar as such losses, claims, damages, or liabilities (or actions in respect thereof)
arise out of or are based upon any of the following statements, omissions or violations
(collectively a “Violation”):

                     (1) any untrue statement or alleged untrue statement of a material fact contained in such
Registration Statement, including any preliminary prospectus or final prospectus contained therein
or any amendments or supplements thereto;

                     (2) the omission or alleged omission to state in the Registration Statement, including any
preliminary prospectus or final prospectus contained therein or any amendments or supplements
thereto, a material fact required to be stated therein, or necessary to make the statements therein
not misleading; or

                     (3) any violation or alleged violation by the Company of Applicable Securities Laws, or any
rule or regulation promulgated under Applicable Securities Laws;

and the Company will reimburse each such Holder, its partner, officer, director, legal counsel,
accountants, underwriter or controlling Person for any legal or other expenses reasonably incurred
by them, as incurred, in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the indemnity agreement contained in
this Section 2.6(a) shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the Company (which
consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for
any such loss, claim, damage, liability or action to the extent that it arises out of or is based
upon a Violation which occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such Registration by such Holder, underwriter or controlling
Person of such Holder.

                     (b)           Notice. Promptly after receipt by an indemnified party under this Section 2.6 of
notice of the commencement of any action (including any governmental action), such indemnified
party will, if a claim in respect thereof is to be made against any indemnifying party under this
Section 2.6, deliver to the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent the indemnifying
party so desires, jointly with any other indemnifying party similarly noticed, to assume the
defense thereof with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party shall have the right to retain its own counsel, with the
fees and expenses to be paid by the indemnifying party, if representation of such indemnified party
by the counsel retained by the indemnifying party would be inappropriate due to actual or potential
conflict of interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the indemnifying party within
a reasonable time of the commencement of any such action shall relieve such indemnifying party of
liability to the indemnified party under this Section 2.6 to the extent the indemnifying party is
prejudiced as a result thereof, but the omission to so deliver written notice to the indemnifying
party will not relieve it of any liability that it may have to any indemnified party otherwise than
under this Section 2.6.

 

 

                     (c)           Contribution. If any indemnification provided for in this Section 2.6 is held by a
court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss,
liability, claim, damage or expense referred to herein, the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such loss, liability, claim, damage or expense in such
proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one
hand, and of the indemnified party, on the other, in connection with the statements or omissions
that resulted in such loss, liability, claim, damage or expense, as well as any other relevant
equitable considerations. The relative fault of the indemnifying party and of the indemnified party
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties’ relative intent,
knowledge, access to information, and opportunity to correct or prevent such statement or omission.

                     (d)           Survival. The obligations of the Company and Holders under this Section 2.6 shall
survive the completion of any offering of Registrable Securities in a Registration Statement,
regardless of the expiration of any statutes of limitation or extensions of such statutes.

     2.7      Termination of the Company’s Obligations. The Company shall not be obligated under
this Section 2 to Register any Registrable Securities which a Holder proposes to sell after
September 18, 2009, or, if, in the reasonable opinion of counsel to the Company, all such
Registrable Securities proposed to be sold may then be sold without registration in any ninety (90)
day period pursuant to Rule 144 under the Securities Act.

     2.8      Rule 144 Reporting. With a view to making available the benefits of Rule 144
promulgated under the Securities Act and any comparable provision of Applicable Securities Law
which may at any time permit the sale of the Registrable Securities to the public without
registration or pursuant to a registration on Form S-1, F-1, S-3 or F-3, the Company agrees to:

                     (a)           Make and keep public information available, as those terms are understood and defined in
Rule 144 under the Securities Act (or comparable provision under Applicable Securities Laws in any
jurisdiction where the Company’s securities are listed), at all times;

                     (b)           Use reasonable, diligent efforts to file with the Commission in a timely manner all
reports and other documents required of the Company under Applicable Securities Law; and

                     (c)           So long as a Holder owns any Registrable Securities, to furnish to such Holder forthwith
upon request (i) a written statement by the Company as to its compliance with the reporting
requirements of all Applicable Securities Laws, or whether it qualifies as a registrant whose
securities may be resold pursuant to Form S-3 or F-3 (or any form comparable thereto under
Applicable Securities Laws of any jurisdiction where the Company’s securities are listed), (ii) a
copy of the most recent annual or quarterly report of the Company and such other reports and
documents as may be filed by the Company with the Commission, and (iii) such other reports and
documents of the Company as a Holder may reasonably request in availing itself of any rule or
regulation of the Commission that permits the selling of any such securities without registration
or pursuant to Form S-3 or F-3 (or any

 

 

form comparable thereto under Applicable Securities Laws of any jurisdiction where the
Company’s securities are listed).

     SECTION 3   CONFIDENTIALITY AND NON-DISCLOSURE.

     3.1      Disclosure of Terms. The terms and conditions (the “Financing Terms”) of this
Agreement, any agreement pursuant to which the Former Series A Holders subscribed to the Company’s
Equity Securities, together with any annexes, exhibits and schedules thereto, and any agreement
pursuant to which the Allyes Holders received the Company’s Equity Securities, together with any
annexes, exhibits and schedules thereto (including any Allyes Ancillary Document) (collectively,
the “Financing Documents”), including their existence, shall be considered confidential information
and shall not be disclosed by any party hereto to any third party except in accordance with the
provisions set forth below.

     3.2      Press Releases. None of the parties hereto shall issue any press release or
otherwise make any announcement in an advertisement, conference or otherwise disclosing any of the
Financing Terms without the prior approval in writing of the Company.

     3.3      Permitted Disclosures. Notwithstanding the foregoing, (i) any party may disclose
the existence of the financing (but not the Financing Terms) to any third party, and (ii) any party
may disclose any of the Financing Terms to its current or bona fide prospective investors,
employees, investment bankers, lenders, partners, accountants and attorneys, in the case of either
(i) or (ii), only where such Person is under appropriate non-disclosure obligations.

     3.4      Legally Compelled Disclosure. In the event that any party is requested or becomes
legally compelled (including without limitation, pursuant to securities laws and regulations) to
disclose the existence of any Financing Document or any of the Financing Terms hereof in
contravention of the provisions of this Section 3, such party (the “Disclosing Party”) shall
provide the other parties hereto with prompt written notice of that fact and use all reasonable
efforts to seek (with the cooperation and reasonable efforts of the other parties hereto) a
protective order, confidential treatment or other appropriate remedy. In any event, the Disclosing
Party shall furnish only that portion of the information which is legally required and shall
exercise reasonable efforts to keep confidential such information to the extent reasonably
requested by any other party hereto.

     3.5      Other Information. The provisions of this Section 3 shall be in addition to, and
not in substitution for, the provisions of any separate nondisclosure agreement executed by any of
the parties hereto with respect to the transactions contemplated hereby.]

SECTION 4     MISCELLANEOUS

     4.1 Binding Effect; Assignment.

                     (a)           Notwithstanding anything herein to the contrary, the rights of any Allyes Holder under
this Agreement may be assigned or transferred (i) by Newco to any of its current shareholders (or
any entity controlled by or beneficially owned by any such shareholders) in an amount not to be
fewer than 25,000 Ordinary Shares that are Registrable Securities in each assignment or transfer,
(ii) by other Allyes Holders to their respective

 

 

partners, general partners, limited partners or other entities contractually or legally
entitled to distributions from such a Holder, or (iii) by either IDG or Oak in an amount not to be
fewer than 1,000,000 Ordinary Shares that are Registrable Securities (or by both IDG and Oak of an
aggregate of no fewer than 1,000,000 Ordinary Shares that are Registrable Securities), in each case
if (x) the Company is, within a reasonable time after such transfer, furnished with written notice
of the name and address of such transferee or assignee and the securities with respect to which
such rights are being assigned and (y) such transferee or assignee agrees in writing to be bound by
and subject to the terms and conditions of this Section 4 and the terms and conditions of each
Section of this Agreement with respect to which any rights are being assigned thereto under this
clause. From the time of such transfer or assignment, for all purposes of each Section of this
agreement with respect to which rights are assigned thereto under this clause, such transferee or
assignee shall be treated as a “Allyes Holder”, as the case may be.

                     (b)          This Agreement shall be binding upon and shall be enforceable by each party, its
successors and permitted assigns. Except as provided in Section 4.1(a) and Section 4.1, no party may assign any of its rights or obligations hereunder without
the prior written approval of the other parties.

	 	4.2     	 	Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York.
	 
	 	4.3     	 	Dispute Resolution.

                     (a)           Any dispute, controversy or claim (each, a “Dispute”) arising out of or relating to this
Agreement, or the interpretation, breach, termination or validity hereof, shall be resolved at the
first instance through consultation between the representatives appointed by the highest ranking
corporate officer of the Company and a representative selected by a majority of the Registrable
Securities outstanding at the time of such dispute (provided any dispute as to any particular
Registration Statement shall be resolved by a representative selected by the Holders representing a
majority of the Registrable Securities included in such Registration Statement) (each a
“Party”). Such consultation shall begin immediately after either Party has delivered to the other
Party a written notice for such consultation.

                     (b)           If the Dispute is not resolved within sixty (60) days following the date on which such
notice is given, the Dispute shall be submitted to arbitration upon the request of either Party
with notice to the other Party (the “Arbitration Notice”).

                     (c)           The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong
International Arbitration Centre (the “Centre”). There shall be three (3) arbitrators. The
claimants in the Dispute shall collectively choose one arbitrator, and the respondents shall
collectively choose one arbitrator. The Secretary General of the Centre shall select the third
arbitrator, who shall be qualified to practice law in the State of New York. If any of the members
of the arbitral tribunal have not been appointed within thirty (30) days after the Arbitration
Notice is given, the relevant appointment shall be made by the Secretary General of the Centre.

                     (d)           The arbitration proceedings shall be conducted in English. The arbitration tribunal shall
apply the Arbitration Rules of the United Nations Commission on International Trade Law, as in
effect at the time of the arbitration. However, if such rules are

 

 

in conflict with the provisions of this Section 4.3, including the provisions concerning the
appointment of arbitrator, the provisions of this Section 4.3 shall prevail.

                     (e)           Each Party shall cooperate with the other in making full disclosure of and providing
complete access to all information and documents requested by the other in connection with such
arbitration proceedings, subject only to any confidentiality obligations binding on such Party.

                     (f)           The arbitrator shall decide any dispute submitted by the parties to the arbitration
strictly in accordance with the substantive law of the State of New York and shall not apply any
other substantive law.

                     (g)           The award of the arbitration tribunal shall be final and binding upon the Parties, and the
prevailing Party may apply to a court of competent jurisdiction for enforcement of such award.

                     (h)           Either Party shall be entitled to seek preliminary injunctive relief, if possible, from
any court of competent jurisdiction pending the constitution of the arbitral tribunal.

                     (i)           During the course of the arbitration tribunal’s adjudication of the dispute, this
Agreement shall continue to be performed except with respect to the part in dispute and under
adjudication.

                     (j)           The cost of arbitration (including legal, accounting and other professional fees and
expenses reasonably incurred, by any prevailing party with respect to the investigation,
collection, prosecution and/or defense of any claim in the Dispute) shall be borne pro rata by each
losing party.

     4.4      Amendments; Termination. This Agreement and its provisions may be amended,
changed, waived, discharged or terminated only by a writing signed by each of (i) the Company and
(ii) the Allyes Holders representing a majority in voting power of Allyes Registrable Securities
then outstanding and which were received pursuant to the Allyes Purchase Agreement. Any amendment,
change, waiver, discharge or termination effected in accordance with the preceding sentence shall
be binding upon each of the parties hereto and their successors and permitted assigns. Without
limiting the foregoing, any party hereto may in writing waive any right that it individually holds
hereunder without seeking the prior consent of any other party hereto. This Agreement shall
automatically terminate when all Holders cease to hold any Allyes Registrable Securities.

     4.5      Notices. All notices, claims, certificates, requests, demands and other
communications under this Agreement shall be made in writing and shall be delivered to any party
hereto by hand or sent by facsimile, or sent, postage prepaid, by reputable overnight courier
services at the address given for such party on the signature pages hereof (or at such other
address for such party as shall be specified by like notice), and shall be deemed given when so
delivered by hand, or if sent by facsimile, upon receipt of a confirmed transmittal receipt, or if
sent by overnight courier, five (5) calendar days after delivery to or pickup by the overnight
courier service.

     4.6      Further Assurances. Each Party shall do and perform, or cause to be done and
performed, all such further acts and things and shall execute and deliver all such other

 

 

agreements, certificates, instruments and documents as the other Party may reasonably request
to give effect to the terms and intent of this Agreement.

     4.7      Entire Agreement. This Agreement constitutes the entire agreement between the
Parties with respect to the subject matter hereof and supersedes all prior written or oral
understandings or agreements.

     4.8      Severability. If any provision of this Agreement shall be held invalid or
unenforceable to any extent, the remainder of this Agreement shall not be affected thereby and
shall be enforced to the greatest extent permitted by law.

     4.9      Remedies Cumulative. The rights and remedies available under this Agreement or
otherwise available shall be cumulative of all other rights and remedies and may be exercised
successively.

     4.10      Counterpart Execution. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

     4.11      No Third Party Beneficiary. Except as contemplated in Section 2.6, nothing in
this Agreement is intended to confer upon any Person other than the Parties hereto and their
respective successors and permitted assigns any rights, benefits, or obligations hereunder.

     [Signature pages follow.]

 

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its
duly authorized officer, in each case as of the date first above written.

	 	 	 	 	 
	 	FOCUS MEDIA HOLDING LIMITED
 	 
	 	By:  	/s/ Nanchun Jiang 	 
	 	 	Name:  	Nanchun Jiang 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

[Company
and Selling Shareholder Signature Pages Follow]

 

 

     IN WITNESS
WHEREOF, each of the parties hereto has caused this Agreement to be executed by its
duly authorized representative, in each case as of the date first above written.

	 	 	 	 	 
	 	IDG TECHNOLOGY VENTURE INVESTMENTS, L.P.

 	 
	 	By:  	/s/ Quan Zhou
 	 
	 	Name:  	 	Quan Zhou 	 
	 	Capacity:  	 	  
	 	Address:  	 	  
	 

	 	 	 	 	 
	 	IDG-ACCEL CHINA GROWTH FUND-A L.P.

 	 
	 	By:  	/s/ Quan Zhou
 	 
	 	Name:  	 	Quan Zhou 	 
	 	Capacity:  	 	  
	 	Address:  	 	  
	 

	 	 	 	 	 
	 	IDG-ACCEL CHINA INVESTORS L.P.

 	 
	 	By:  	/s/ Quan Zhou
 	 
	 	Name:  	 	Quan Zhou 	 
	 	Capacity:  	 	  
	 	Address:  	 	  
	 

	 	 	 	 	 
	 	IDG-ACCEL CHINA GROWTH FUND L.P.

 	 
	 	By:  	/s/ Quan Zhou
 	 
	 	Name:  	 	Quan Zhou 	 
	 	Capacity:  	 	  
	 	Address:  	 	  
	 

 

 

     IN WITNESS
WHEREOF, each of the parties hereto has caused this Agreement to be executed by its
duly authorized representative, in each case as of the date first above written.

	 	 	 	 	 
	 	OAK INVESTMENT PARTNERS XI, L.P.

 	 
	 	By:  	/s/ Fredric W. Harman
 	 
	 	Name:  	 	Fredric W. Harman 	 
	 	Capacity: 	 	 
	 	Address:	 	525 University Avenue, Suite 1300

Palo Alto, CA 94301

United States of America

Phone: (1-650) 614 -3700

Fax: (1-650) 328-6345

Attention: 	 
	 

 

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its
duly authorized representative, in each case as of the date first above written.

	 	 	 	 	 
	 	ALLYES INFORMATION TECHNOLOGY COMPANY LIMITED

 	 
	 	By:  	/s/ Hailong Zhu
 	 
	 	Name:  	 	Hailong ZHU 	 
	 	Capacity: 	 	Chief Executive Officer	 
	 	Address: 	 	21/F, No. 1018 Changning Road

Changning District, Shanghai 200040

People's Republic of China 	 
	 

	 	 	 	 	 
	 	AURA INVESTMENT HOLDINGS LIMITED

 	 
	 	By:  	/s/ Xiangdong Xiong
 	 
	 	Name:  	 	Xiangdong Xiong 	 
	 	Capacity: 	 	Authorized Representative
	 	Address: 	 	 
	 

	 	 	 	 	 
	 	CAPTAINS ENTERPRISES LIMITED

 	 
	 	By:  	/s/ Martin Maolin Chen
 	 
	 	Name:  	 	Taihong CHEN (Martin Maolin CHEN) 	 
	 	Capacity: 	 	Authorized Representative
	 	Address: 	 	 
	 

	 	 	 	 	 
	 	KINGHILL INTERNATIONAL HOLDING CO, LTD.

 	 
	 	By:  	/s/ Jiangang Wang
 	 
	 	Name:  	 	Jiangang WANG 	 
	 	Capacity: 	 	Authorized Representative
	 	Address: 	 	 
	 

	 	 	 	 	 
	 	LATITUDE HOLDINGS GROUP LIMITED

 	 
	 	By:  	/s/ Wei Chen
 	 
	 	Name:  	 	Wei CHEN 	 
	 	Capacity: 	 	Authorized Representative
	 	Address: 	 	 
	 

 

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its
duly authorized representative, in each case as of the date first above written.

	 	 	 	 	 
	 	LINKVALUE LTD.

 	 
	 	By:  	/s/
Li Jie, Rongzheng Xu	 
	 	Name:  	 	Lie Jie 	 
	 	Capacity: 	 	Authorized Representative
	 	Address: 	 	 
	 

	 	 	 	 	 
	 	PREMACY CO. LTD.

 	 
	 	By:  	/s/ Ting Jia
 	 
	 	Name:  	 	Ting Jia 	 
	 	Capacity: 	 	Authorized Representative
	 	Address: 	 	 
	 

	 	 	 	 	 
	 	SEA DRAGON HOLDING COMPANY LTD.

 	 
	 	By:  	/s/ Hailong Zhu
 	 
	 	Name:  	 	Hailong ZHU 	 
	 	Capacity: 	 	Authorized Representative
	 	Address: 	 	 
	 

	 	 	 	 	 
	 	SHARVEST CAPITAL LIMITED

 	 
	 	By:  	/s/ Yang Chen
 	 
	 	Name:  	 	Chen YANG 	 
	 	Capacity: 	 	Authorized Representative
	 	Address: 	 	 
	 

	 	 	 	 	 
	 	SMART MASTER INTERNATIONAL LIMITED

 	 
	 	By:  	/s/ Nanpeng Shen
 	 
	 	Name:  	 	Nanpeng SHEN 	 
	 	Capacity: 	 	Authorized Representative
	 	Address: 	 	 

 

 

     IN WITNESS
WHEREOF, each of the parties hereto has caused this Agreement to be executed by its
duly authorized representative, in each case as of the date first above written.

	 	 	 	 	 
	 	TECHWARE HOLDING COMPANY LTD.

 	 
	 	By:  	Jiangang
Wang	 
	 	Name:  	 	 	 
	 	Capacity: 	 	Authorized Representative
	 	Address: 	 	 
	 

	 	 	 	 	 
	 	TRANS CHINA LTD.

 	 
	 	By:  	/s/ Taihong Chen
 	 
	 	Name: 	 	Taihong CHEN 
	 	Capacity: 	 	Authorized Representative

	 

	 	 	 	 	 
	 	SAM ZHONGSHAN QIAN

 	 
	 	/s/ Sam Zhongshan Qian 	 
	 	Passport Number: 	 
	 	Address: 	 
	 

(LI JUNZHI)

	 	 	 	 	 
	 	 	 
	 	/s/ Junzhi Li 	 
	 	Address: 	 
	 	 	 
	 

(HAN YULING)

	 	 	 	 	 
	 	 	 
	 	/s/ Yuling Han 	 
	 	ID Number: 	 
	 	Address: 	 
	 

(ZHANG JUAN)

	 	 	 	 	 
	 	 	 
	 	/s/ Juan Zhang 	 
	 	ID Number: 	 
	 	Address: 	 
	 

 

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its
duly authorized representative, in each case as of the date first above written.

(BAI YUNHAI)

	 	 	 	 	 
	 	 	 
	 	/s/ Yunhai Bai 	 
	 	ID Number: 	 
	 	Address: 	 
	 

 (LI WEI)

	 	 	 	 	 
	 	 	 
	 	/s/ Wei Li
 	 
	 	ID Number: 	 
	 	Address: 	 
	 

 (ZHAI JUNNI)

	 	 	 	 	 
	 	 	 
	 	/s/ Junni Zhai 	 
	 	ID Number: 	 
	 	Address: 	 
	 

 (LI LU)

	 	 	 	 	 
	 	 	 
	 	/s/ Lu Li 	 
	 	ID Number: 	 
	 	Address: 	 
	 

 (ZHOU DAI)

	 	 	 	 	 
	 	 	 
	 	/s/ Dai Zhou 	 
	 	ID Number: 	 
	 	Address: 	 
	 

 

 

Schedule A
— Allyes Holders

IDG Technology Venture Investments, LP

IDG Technology Venture Investments, LP

IDG-ACCEL CHINA GROWTH FUND-A L.P.

IDG-ACCEL CHINA GROWTH FUND L.P.

IDG-ACCEL CHINA INVESTORS L.P.

Oak Investment Partners XI, L.P.

Techware Holding Company Ltd

KingHill International Holding Co, Limited

LinkValue Ltd.

Sharvest Capital Limited

Transchina

CAPTAINS ENTERPRISES LIMITED

AURA INVESTMENT HOLDINGS LIMITED

SMART MASTER INTERNATIONAL LIMITED

Sea Dragon Holding Company Ltd

Premacy Co. Limited

Latitude Holdings Group Limited

Sam Zhongshan Qian

Li Junzhi 

Han Yuling 

zhang Jun 

Bai Yunhai 

Li Wei 

Zhai Junni

Li Lu 

Zhou Dai 

 

 

Registration Rights Agreement Schedule 2.1(a)(3)

	 	1.	 	Deloitte Touche Tohmatsu’s inability or unwillingness to provide an audit report in
respect of Allyes Information Technology Company Limited for fiscal year 2006.
	 
	 	2.	 	Any issue or problem relating to SEC Rule 3-05 of Regulation S-X that arises as a
result of Focus Media Holding Limited’s acquisition of Allyes Information Technology
Company Limited.
	 
	 	3.	 	Any other issue or problem resulting from Focus Media Holding Limited’s acquisition of
Allyes Information Technology Company Limited and that renders Focus Media Holding Limited
ineligible to use Form F-3ASR.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]