Document:

Exhibit
10.1

 

ORDINARY SHARES PURCHASE AGREEMENT

 

THIS ORDINARY
SHARES PURCHASE AGREEMENT (this “Agreement”), is made as of this 30th
day of January 2005, by and among China HR.com
Holdings Ltd., an exempted company limited by shares incorporated under the
laws of the Cayman Islands (the “Company”), TMP Worldwide Limited, a
company incorporated under the laws of the United Kingdom (the “Investor”),
and the shareholders of the Company listed on Schedule A hereto
(which persons and entities are hereinafter collectively referred to as the “Shareholders”
and each individually as a “Shareholder”).

 

RECITALS

 

WHEREAS,
the Investor desires to purchase from the Company, and the Company desires to
sell to the Investor, 22,815,357 of the Company’s ordinary shares, U.S. $.05
par value per share, (the “Shares”), at U.S. $2.1915 per share.

 

NOW,
THEREFORE, in consideration of the mutual promises and
covenants set forth in this Agreement, and intending to be legally bound, the
parties agree as follows:

 

SECTION 1.  PURCHASE AND SALE OF SHARES.

 

1.1          Sale
of Ordinary Shares.  Subject to
the terms and conditions of this Agreement, the Investor agrees to purchase at
the Closing (as defined below) and Company agrees to issue and sell to the
Investor at the Closing (as defined below) the Shares for the aggregate
purchase price of Fifty Million United States Dollars (U.S. $50,000,000) (the “Purchase
Price”).  The purchase and sale of
the Shares shall take place at the offices of Morrison & Foerster,
Entertainment Building, 30 Queen’s Road Central, Hong Kong at 10:00 a.m.,
on February 1, 2005, or at such other time and place as the Company and
the Investor shall mutually agree in writing (the “Closing”).

 

1.2          Closing.  For purposes of this Agreement, the date of
the Closing shall be referred to as the “Closing Date”.  In addition to the other deliverables
specified herein, at the Closing, the Company shall deliver to the Investor a
share certificate registered in the name of the Investor representing the
Shares being purchased by it at the Closing. 
As payment in full for the Shares being purchased by it under this
Agreement, and against delivery of the share certificate or certificates
therefor as aforesaid, at the Closing the Investor shall deliver the Purchase
Price to the Company by wire transfer of immediately available funds in
accordance with wire instructions provided by the Company to the Investor.   The Company and the Investor each agree to
use their reasonable best efforts to satisfy promptly the conditions to their
respective obligations to consummate the transactions contemplated hereby.

 

1.3          Additional
Shares.  If at any time
subsequent to the Closing it shall be determined that the Company’s
representations and warranties in Section 2.5 of this Agreement were
incorrect as of the Closing such that (i) the total number of Shares held by
the Investor subsequent to the Closing was less than 40% of the Fully-Diluted
Outstanding Shares (as defined below) then the Company shall immediately issue
to the Investor for no additional consideration that number of Ordinary Shares
(as hereinafter defined) so that the total number of Shares the

 

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Investor holds
after such issuance would have equaled 40% of the Fully-Diluted Outstanding
Shares as of a date immediately subsequent to the Closing.  For purposes of this Section 1.3, the “Fully-Diluted
Outstanding Shares” at any particular time shall equal the sum of: (i) the
number of Ordinary Shares outstanding at such time, (ii) the number of Ordinary
Shares into which any outstanding Preference Shares (as hereinafter defined)
are convertible at such time, and (iii) the number of shares issuable upon
exercise or conversion of other securities of the Company (including, without
limitation, any options, rights, warrants, or indebtedness of the Company),
including a maximum total of 6,919,716 Ordinary Shares subject to the Company’s
2005 Incentive Stock Option Plan (the “2005 Plan”).

 

SECTION 2.  REPRESENTATIONS AND WARRANTIES OF THE
COMPANY.

 

The Company
hereby represents and warrants to the Investor that the statements contained in
this Section 2 are correct and complete as of the date of this Agreement,
and will be correct and complete on the Closing Date (as though made then and
as though the Closing Date were substituted for the date of this Agreement
throughout this Section 2), except as set forth in the Schedule of
Exceptions delivered by the Company on the date hereof (the “Schedule of
Exceptions”).  As used in this Section 2,
the “Company” shall mean the Company and its subsidiaries, including without
limitation, China-HR.com Corporation, China HR.com (Hong Kong) Limited, Ecareer
(Shanghai) Limited (“Ecareer Shanghai”) and Ecareer (Beijing) Limited (“Ecareer
Beijing”) (each subsidiary of the Company, whether or not specifically
identified in the preceding portion of this sentence, is referred to herein as
a “Subsidiary” and collectively, the “Subsidiaries”) unless the
context otherwise requires.  Nothing in
the Schedule of Exceptions shall be deemed adequate to disclose an
exception to a representation or warranty made herein, however, unless the Schedule of
Exceptions identifies the exception with reasonable particularity and describes
the relevant facts in reasonable detail. 
Without limiting the generality of the foregoing, the mere listing (or
inclusion of a copy) of a document or other item shall not be deemed adequate
to disclose an exception to a representation or warranty made herein (unless
the representation or warranty has to do with the existence of the document or
other item itself).  The Schedule of
Exceptions is arranged in paragraphs corresponding to the lettered and numbered
paragraphs contained in this Section 2.

 

2.1          Organization;
Power; Good Standing; Qualification. 
The Company is an exempted company limited by shares duly incorporated,
validly existing, and in good standing under the laws of the Cayman Islands,
has all requisite corporate power and authority to own and operate its
properties and assets and to carry on its business as now conducted and as
presently proposed to be conducted, to execute and deliver this Agreement and
any other agreement to which the Company is a party, the execution and delivery
of which is contemplated hereby, including the Shareholders Agreement attached
hereto as Exhibit A (the “Shareholders Agreement”), to issue and
sell the Shares and to carry out the provisions of this Agreement and the
Shareholders Agreement.  The Company is
duly qualified and is authorized to transact business in each jurisdiction in
which the conduct of the Company’s business or the nature of the property owned
by it requires such qualification and in which the failure so to qualify would
have a material adverse effect on its business, properties, prospects, or
financial condition.  Each Subsidiary is
validly existing and is in good standing in the jurisdiction of its
organization, has all requisite corporate power and authority to own and
operate its properties and assets and to carry on its business as now conducted
and as presently proposed to be conducted. 
Each Subsidiary is duly qualified and is authorized to transact business
in each jurisdiction in which

 

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the conduct of
such Subsidiary’s business or the nature of the property owned by it requires
such qualification and in which the failure so to qualify would have a material
adverse effect on its business, properties, prospects, or financial condition.

 

2.2          Authorization.  All corporate action on the part of the
Company, its officers, directors and shareholders necessary for the
authorization, execution and delivery of this Agreement and the Shareholders
Agreement, the performance of all obligations of the Company hereunder and
thereunder at the Closing and the authorization, issuance, sale and delivery of
the Shares have been taken or will be taken prior to the Closing, and this
Agreement and the Shareholders Agreement, when executed and delivered, will
constitute valid and legally binding obligations of the Company, enforceable in
accordance with its terms, except as such enforcement may be subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditor’s rights and general principles of
equity.

 

2.3          Corporate
Power.  The Company has all
requisite legal and corporate power and authority to execute and deliver this
Agreement and the Shareholders Agreement, to sell and issue the Shares
hereunder, and to carry out and perform its obligations under the terms of each
of the foregoing agreements.

 

2.4          Governmental
Consents.  No consent, approval,
qualification, order or authorization of, or filing with, any local, state, or
federal governmental authority is required on the part of the Company in
connection with its valid execution, delivery, or performance of this
Agreement, the Shareholders Agreement or the offer, sale or issuance of the
Shares, except such post-Closing filings as may be required under applicable
laws, all of which will be timely filed after the Closing within the applicable
periods therefor.

 

2.5          Capitalization
and Voting Rights.

 

(a)           The
Company has 16,403,875 authorized series A preference shares, U.S. $.05 par
value per share (the “Preference Shares”), all of which are issued and
outstanding.  All of the Preference
Shares shall be converted to Ordinary Shares immediately prior to the Closing.

 

(b)           The
Company has 400,000,000 authorized ordinary shares, U.S. $.05 par value per
share (the “Ordinary Shares”), of which 22,870,194 shares are issued and
outstanding.  The outstanding Ordinary
Shares are owned beneficially by the shareholders that are set forth on Schedule 2.5(b)
hereto.

 

(c)           The
outstanding Ordinary Shares have been duly authorized and validly issued, are
fully paid and nonassessable, and were issued in accordance with the
registration or qualification provisions of the United States Securities Act of
1933, as amended (the “Securities Act”) and any relevant state, foreign
and local securities and similar laws or pursuant to valid exemptions
therefrom, and were not issued in violation of any preemptive rights, rights of
first refusal and similar rights.

 

(d)           Except
as set forth on Schedule 2.5(d) and except for the rights
provided in the Shareholders Agreement, there are no outstanding options,
warrants, rights (including conversion or preemptive rights and rights of first
refusal), proxy or shareholder agreements or agreements of any kind for the
purchase or acquisition from the Company of any of the

 

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Company’s securities.  The
Company has reserved a total of 6,919,716 Ordinary Shares for issuance pursuant
to the 2005 Plan.  The Company has issued
warrants to purchase an aggregate of 4,000,000 Ordinary Shares.  Set forth on Schedule 2.5(d)
is a list of all holders of options, warrants or other securities exercisable
or convertible into share capital of the Company, the number of shares covered
thereby and the applicable exercise or conversion price.  Except for the Shareholders Agreement, the
Company is not a party or subject to any agreement or understanding and there
is no agreement or understanding between any persons (whether or not the
Company or any of its subsidiaries is a party thereto), that affects or relates
to the voting or giving of written consents with respect to any security or the
voting by a director of the Company.

 

(e)           The Company has an
aggregate of 50,193,785 outstanding Ordinary Shares and Ordinary Shares
issuable upon conversion of the Preference Shares or exercise of outstanding
options or warrants.  At the Closing, an
aggregate of 15,970,750 Ordinary Shares will be purchased from the
Shareholders, as set forth on Schedule A, at an aggregate purchase
price of U.S.$35,000,000, so that at the Closing and giving effect to such
repurchase and the sale of the Shares to the Investor, the Company will have
outstanding 57,038,392 Ordinary Shares.

 

2.6          Valid
Issuance of Shares.  The Shares
that are being purchased by the Investor hereunder, when issued, sold and
delivered in accordance with the terms of this Agreement for the consideration
expressed herein, will be duly and validly issued, fully paid, and
nonassessable, and will be free of restrictions on transfer other than
restrictions on transfer under this Agreement, the Shareholders Agreement and
under applicable securities laws of the United States and other jurisdictions.

 

2.7          Subsidiaries.  Except as set forth on Schedule 2.7,
the Company does not own or control, directly or indirectly, any interest in
any other corporation, partnership, limited liability company, association, or
other business entity.  The Company is
not a participant in any joint venture, partnership, or similar arrangement.

 

2.8          Contracts
and Other Commitments.  Except as
set forth on Schedule 2.8, the Company does not have and is not
bound by any contract, agreement, lease, or commitment, written or oral,
absolute or contingent, other than (i) contracts for
the purchase of supplies and services that were entered into in the ordinary
course of business and that do not involve more than Twenty-Five Thousand
United States Dollars (U.S. $25,000), and do not extend for more than one year
beyond the date hereof, (ii) sales contracts
entered into in the ordinary course of business, (iii) contracts
terminable at will by the Company on no more than thirty (30) days’ notice
without cost or liability to the Company which neither involve any employment
or consulting arrangement nor are material to the conduct of the Company’s
business, (iv) confidentiality agreements, and (v) contracts provided for in this Agreement.  Neither the Company, nor, to the Company’s
knowledge, any other party to any contract covered by clauses (i) to (v) above,
is in default (or would be in default in the event of the giving of notice or passage
of time or both) under any contract, agreement, lease or commitment, including
but not limited to those covered by clauses (i) to (v) above.  Notwithstanding the foregoing, employment and
consulting contracts and contracts with labor unions, and license agreements
and any other agreements relating to the Company’s acquisition or disposition
of patent, copyright, trade secret or other proprietary rights or technology
(other than standard end-user license agreements) shall not be considered to be
contracts entered into in the ordinary course of business.  The Company

 

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is not in
violation of or default (or would be in default in the event of the giving of
notice or passage of time or both) under any provision of either the Ecareer
Beijing Cooperative Contract, dated December 2, 1999 or the Ecareer
Shanghai Cooperative Contract, dated July 20, 2000.

 

2.9          Related-Party
Transactions.  Except as set
forth on Schedule 2.9, no employee, officer, shareholder or director
of the Company or member of his or her immediate family is indebted to the
Company, nor is the Company indebted (or committed to make loans or extend or
guarantee credit) to any of them.  To the
best of the Company’s knowledge, none of such persons has any direct or
indirect ownership interest in any firm or corporation with which the Company
is affiliated or with which the Company has a business relationship, or any
firm or corporation that competes with the Company, except that employees,
shareholders, officers, or directors of the Company and members of their
immediate families may own stock in publicly traded companies that may compete
with the Company (but not exceeding 2% of the outstanding capital stock of any
such firm or corporation).  No officer,
director, or shareholder or any member of their immediate families is, directly
or indirectly, interested in any contract(s) or transaction(s) with the
Company.

 

2.10        Registration
Rights.  The Company is presently
not under any obligation and has not granted any rights to register under the
Securities Act or the securities laws and regulations of any jurisdiction any
of its presently outstanding securities or any of its securities that may
subsequently be issued.

 

2.11        Permits.  Except as set forth on Schedule 2.11,
the Company has all franchises, permits, licenses, and any similar authority
necessary for the conduct of its business as now being conducted by it, the
lack of which could materially and adversely affect the business, properties,
prospects, or financial condition of the Company, and believes it can obtain,
without undue burden or expense, any similar authority for the conduct of its
business as presently planned to be conducted. 
The Company is not in default in any material respect under any of such
franchises, permits, licenses or other similar authority.  Ecareer Shanghai and Ecareer Beijing are
properly and fully licensed by all applicable governmental authorities of the
Peoples Republic of China (the “PRC”) and are established and are owned,
and have conducted their respective businesses in accordance with all relevant
permits, licenses, approvals and all other applicable legal requirements of the
PRC.

 

2.12        Compliance
With Other Instruments.  The
Company is not in violation or default of any provision of its Memorandum of
Association, Articles of Association or Certificate of Incorporation or in any
respect of any provision of any mortgage, indenture, agreement, instrument, or
contract to which the Company is a party or by which the Company or any of its
properties or assets is bound or of any foreign, federal, state or local
judgment, order, writ, decree, statute, rule, regulation or restriction
applicable to the Company.  The
execution, delivery, and performance by the Company of this Agreement and the
Shareholders Agreement, and the consummation of the transactions contemplated
hereby and thereby, will not result in any such violation or default or
constitute, with or without the passage of time or giving of notice, either a
default under any such provision or an event that results in the creation of
any lien, charge, or encumbrance upon any assets of the Company or the
suspension, revocation, impairment, forfeiture, or nonrenewal of any material
permit, license, authorization, or approval applicable to the Company, its
business or operations, or any of its assets or properties.

 

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2.13        Litigation.  There is no action, suit, proceeding,
or investigation pending or, to the Company’s knowledge, currently threatened
against the Company that questions the validity of this Agreement, or the
Shareholders Agreement or the right of the Company to enter into such
agreements, or to consummate the transactions contemplated hereby or thereby,
or that might result, either individually or in the aggregate, in any adverse
change in the business, properties, prospects, or financial condition of the
Company, or in any change in the current equity ownership of the Company.  The foregoing includes, without limitation,
any action, suit, proceeding, or investigation pending or currently threatened
involving the prior employment of any of the Company’s employees, their use in
connection with the Company’s business of any information or techniques
allegedly proprietary to any of their former employers, their obligations under
any agreements with prior employers, or negotiations by the Company with
potential backers of, or investors in, the Company or its proposed
business.  The Company is not a party to
or, to the Company’s knowledge, named in or subject to any order, writ,
injunction, judgment, or decree of any court, government agency, or
instrumentality.  Except as set forth on Schedule 2.13,
there is no action, suit, proceeding or investigation by the Company currently
pending or that the Company currently intends to initiate.

 

2.14        Disclosure.  The Company has provided the Investor
with all the information that the Investor has requested for deciding whether
to purchase the Shares.  Neither this
Agreement nor the Shareholders Agreement, or certificates made or delivered in
connection herewith contains any untrue statement of a material fact or omits
to state a material fact necessary to make the statements herein or therein, in
light of the circumstances in which they were made, not misleading.  There is no fact known to the Company which
has had or could be reasonably expected to have a material adverse effect on
the assets, business, properties, prospects, financial condition or results of
operation of the Company which has not been disclosed or provided to the
Investor.

 

2.15        Private
Offering.  Subject in part to the
truth and accuracy of the Investor’s representations set forth in this
Agreement, the offer, sale and issuance of the Shares as contemplated by this
Agreement is exempt from the registration requirements of the Securities Act
and from the registration or qualification requirements of applicable state
securities laws, and neither the Company nor any authorized agent acting on its
behalf will take any action hereafter that would cause the loss of such
exemptions.

 

2.16        Title
to Property and Assets; Leases.  The
Company does not own any real or immovable property.  The Company owns or has valid rights to use
all property and assets (tangible and intangible) necessary for the conduct of
its business as now conducted.  Except (i) for liens for current taxes not yet delinquent, (ii) for liens imposed by law and incurred in the
ordinary course of business for obligations, not past due, to carriers,
warehousemen, laborers, materialmen and the like, (iii) for
liens in respect of pledges or deposits under workers’ compensation laws or
similar legislation or (iv) for minor defects
in title, none of which, individually or in the aggregate, materially
interferes with the use of such property, the Company has good and marketable
title to its property and assets free and clear of all mortgages, liens,
claims, and encumbrances.  With respect
to the property and assets it leases, the Company is in compliance with such leases
and, to the Company’s knowledge, holds a valid leasehold interest free of any
liens, claims, or encumbrances, subject to clauses (i)-(iv) above.

 

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2.17        Financial
Information.  The Company has
delivered to the Investor the Company’s consolidated audited financial
statements (consolidated income statement, consolidated balance sheet,
consolidated statement of changes in equity and consolidated cash flow
statement), as of and for the fiscal years ended December 31, 2003 and December 31,
2002 (the “Annual Financial Statements”) and unaudited consolidated
financial statements for the nine months
ended September 30, 2004 (the “Interim
Financial Statements” and, together with the Annual Financial Statements,
the “Financial Statements”), which Financial Statements are attached
hereto as Schedule 2.17. The Financial Statements are true,
complete and correct in all material respects, are in accordance with the books
and records of the Company, and present fairly the financial position of the
Company as of and at the dates indicated and the results of their operations
and cash flows for the periods specified. 
The Financial Statements have been prepared in conformity with International
Standards on Accounting (“ISA”) on a consistent basis throughout the
periods involved, except as may be expressly stated in the related notes
thereto and subject, in the case of the Interim Financial Statements to normal
year end adjustments and the omission of certain footnotes that may be required
by ISA.  Except as set forth in the
Financial Statements, the Company does not have any liabilities (whether
accrued, absolute, unlimited, contingent or otherwise, whether due or to become
due, and regardless of when asserted) arising out of transactions entered into
at or prior to the Closing, or any action or inaction at or prior to the
Closing or any state of facts existing at or prior to the Closing other than
(i) immaterial liabilities and obligations, that have arisen after September 30,
2004 in the ordinary course of business (none of which is a liability resulting
from breach of contract, breach of warranty, infringement, claim or lawsuit),
or (ii) obligations that would not be required to be reflected in financial
statements presented in accordance with ISA. 
ISA, as it applies to the Financial Statements, is not materially
different than generally accepted accounting principles as applied in the
United States.  The consolidated income
statements included in the Financial Statements do not contain any material
items of non-recurring income or other income not earned in the ordinary course
of business except as expressly specified therein.

 

2.18        Changes.  Except as set forth in Schedule 2.18,
since September 30, 2004, there has not been:

 

(a)           any
change in the assets, liabilities, financial condition, or operating results of
the Company from that reflected in the Financial Statements, except for changes
in the ordinary course of business that have not been, in the aggregate,
materially adverse;

 

(b)           any
damage, destruction or loss, whether or not covered by insurance, materially
affecting the business, properties, prospects, or financial condition of the
Company (as such business is presently conducted and as it is presently
proposed to be conducted);

 

(c)           any
waiver or compromise by the Company of a valuable right or of a material debt
owed to it;

 

(d)           any
satisfaction or discharge of any lien, claim, or encumbrance or payment of any
obligation by the Company, except in the ordinary course of business and that
is not material to the business, properties, prospects or financial condition
of the Company;

 

(e)           any
material change to a material contract or arrangement by which the Company or
any of its assets is bound or subject;

 

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(f)            any
material change in any compensation arrangement or agreement with any employee,
officer, director or shareholder;

 

(g)           any
sale, assignment, or transfer of any patents, trademarks, copyrights, trade
secrets, or other intangible assets;

 

(h)           any
resignation or termination of employment of any key officer of the Company; and
the Company, to the best of the Company’s knowledge, does not know of the
impending resignation or termination of employment of any such officer;

 

(i)            receipt
of notice that there has been a loss of, or material order cancellation by, any
major customer of the Company;

 

(j)            any
mortgage, pledge, transfer of a security interest in, or lien, created by the
Company, with respect to any of its properties or assets, except liens for
taxes not yet due or payable;

 

(k)           any
loans or guarantees made by the Company to or for the benefit of its employees,
shareholders, officers, or directors, or any members of their immediate
families, other than travel advances and other advances made in the ordinary
course of its business;

 

(l)            any
declaration, setting aside, or payment of any dividend or other distribution of
the Company’s assets in respect of any of the Company’s share capital, or any
direct or indirect redemption, purchase, or other acquisition of any of such
shares by the Company;

 

(m)          to
the best of the Company’s knowledge, any other event or condition of any
character that is reasonably likely to materially and adversely affect the
business, properties, prospects, or financial condition of the Company (as such
business is presently conducted and as it is presently proposed to be
conducted); or

 

(n)           any
agreement or commitment by the Company to do any of the things described in
this Section 2.18.

 

2.19        Patents
and Trademarks.

 

(a)           Except
as set forth on Schedule 2.19, the Company owns or possesses full
legal rights to all patents, patent applications, patent rights, trademarks,
trademark applications, service marks, trade names, copyrights, trade secrets,
licenses, information, and proprietary rights and processes necessary for its
business as now conducted and as currently proposed to be conducted without any
conflict with, or infringement of, the rights of others. Schedule 2.19
contains a complete list of trademarks, trademark applications, patents and
pending patent applications of the Company, if any.  Except for agreements with its own employees
or consultants, substantially in the form referenced in Section 2.21
below, and end-user internal use software license and support/maintenance
agreements, there are no outstanding options, licenses, or agreements of any
kind relating to the foregoing, nor is the Company bound by or a party to any
options, licenses, or agreements of any kind with respect to the patents,
trademarks, service marks, trade names, copyrights, trade secrets, licenses,
information, and proprietary rights and processes of any other person or
entity.  The Company has not received any
notice of or

 

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communication alleging a violation of any patent, trademark, service
mark, trade name, copyright, trade secret, or other proprietary right or
process of any other person or entity. 
All prior art known to the Company which may be or may have been
pertinent to the examination of any United States patent or patent application
listed on Schedule 2.19 has been cited to the United States Patent
and Trademark Office.

 

(b)           To
the best knowledge of the Company,

 

(i)            the Company has not
violated or, by conducting its business as proposed, would not violate any of
the patents, trademarks, service marks, trade names, copyrights, trade secrets,
or other proprietary rights or processes of any other person or entity;

 

(ii)           All technical
information developed by and belonging to the Company which has not been
patented has been kept confidential;

 

(iii)          none of the Company’s
employees is obligated under any contract (including licenses, covenants, or
commitments of any nature) or other agreement, or subject to any judgment,
decree, or order of any court or administrative agency, that would interfere
with the use of such employee’s best efforts to promote the interests of the
Company or that would conflict with the Company’s business as currently
conducted or proposed to be conducted;

 

(iv)          neither the execution,
delivery and performance of this Agreement, nor the carrying on of the Company’s
business by the employees of the Company, nor the conduct of the Company’s
business as proposed, will conflict with or result in a breach of the terms,
conditions, or provisions of, or constitute a default under, any contract,
covenant, or instrument under which any of such employees is now obligated;

 

(v)           it would not be
necessary to use any inventions of any of the Company’s employees (or persons
the Company currently intends to hire) made prior to their employment by the
Company which use would be in violation of any such employee’s terms of
employment with such former employer; and

 

(vi)          neither the execution
nor delivery of this Agreement, nor the carrying on of the Company’s business
by the officers or other personnel of the Company, nor the conduct of the
Company’s business as currently proposed, will conflict with or result in a
breach of the terms, conditions, or provisions of, or constitute a default
under, any contract, covenant, or instrument under which any of such officers
or other personnel is now obligated.

 

2.20        Employees;
Employee Compensation.  There are
no strikes, labor disputes or union organization activities pending or, to the
best knowledge of the Company, threatened between the Company and its
employees, the Company is not party to any collective bargaining agreement and
the Company is not aware of any labor organization or activity involving its
employees.  To the best of the Company’s
knowledge, the Company has complied in all material respects with all
applicable laws related to employment. 
Except as set forth on Schedule 2.20(i), the Company is not
a party to or bound by any currently effective employment contract, deferred
compensation agreement, bonus plan, incentive plan, profit sharing plan,
retirement agreement, or other employee compensation agreement.  The Company does not have any Employee
Benefit Plan as defined in the Employee Retirement Income Security Act of 1974,
as amended. The Company is not aware that any officer or key employee, or that
any group of key employees,

 

9

 

intends to
terminate their employment with the Company, nor does the Company have a
present intention to terminate the employment of any of the foregoing. Subject
to general principles related to wrongful termination of employees and other
than as set forth on Schedule 2.20(ii), the employment of each
officer and employee of the Company is terminable at the will of the Company.

 

2.21        Employee
Confidentiality Agreements.  Except
as set forth on Schedule 2.21, each employee, consultant and
officer of the Company has on or prior to the date hereof executed a form of
proprietary information and inventions agreement.  The Company is not aware that any of its
employees, consultants or officers is in violation thereof, and the Company
will use its best efforts to prevent any such violation.

 

2.22        Development
and Marketing Rights.  To the best
of its knowledge, the Company has not granted rights to develop, manufacture,
license, market, distribute or sell any of its products or services to any
other person and is not bound by any agreement that affects the Company’s
exclusive right to develop, manufacture, license, market, distribute or sell
its products or services.

 

2.23        Taxes.

 

(a)           The
Company and each of its Subsidiaries has (i) filed all tax returns or reports
(federal, state, local or foreign) as required by law, and all such tax returns
and reports were true, correct and complete in all material respects, (ii) duly
and timely paid all taxes and other assessments due, except those contested by
it in good faith and for which adequate reserves have been set forth in the
Financial Statements, (iii) made adequate provisions in the Financial
Statements for all taxes, assessments, and governmental charges with respect to
its business, properties, and operations, and (iv) withheld or collected from
each payment made to each of its employees, the amount of all taxes, including,
but not limited to, income and employment taxes, required to be withheld or
collected therefrom, and paid the same to the proper tax receiving officers or
authorized depositories.  The Company has
provided the Investor with complete copies of all material income tax returns
of the Company or its Subsidiaries relating to taxable periods beginning after December 31,
2000 and any audit report issued in the last three years.

 

(b)           Neither
the Company nor any of its Subsidiaries has had any tax deficiency proposed or
assessed against it, or has executed any waiver of any statute of limitations
on the assessment or collection of any tax or governmental charge.  No tax proceedings, audits or other
investigations by or involving any taxing authority are currently in progress
with respect to the Company or any of its Subsidiaries, nor has the Company or
any of its Subsidiaries received any notice from any taxing authority that it
intends to conduct such a proceeding, audit or investigation.

 

(c)           Neither
the Company nor any of its Subsidiaries (i) is a party to any tax sharing or
allocation agreement, or (ii) has requested or received a ruling from any tax
authority or signed a closing or other agreement with any tax authority.  No Subsidiary of the Company is a corporation
organized under the laws of the United States, or any State or political
subdivision thereof.  Neither the Company
nor any of its Subsidiaries has ever been a member of any consolidated,
combined, unitary, aggregate, or affiliated group filing or required to file a
return on a consolidated, combined, unitary, aggregate, or affiliated group
basis, under the laws of any

 

10

 

jurisdiction, other than the group the parent of which is the
Company.  Neither the Company nor any of
its affiliates is currently a party to any joint venture, partnership or other
arrangement that could be treated as a partnership for U.S. income tax
purposes.

 

(d)           The
Company has provided the Investor with a true and complete list of each of the
shareholders of the Company and their respective interest in the Company.  None of the shareholders of the Company, nor,
to the knowledge of the Company, any of the beneficial owners of the
shareholders of the Company, are (i) a citizen or resident of the United
States, (ii) a corporation, partnership or other entity created or organized in
the United States or under the law of the United States or any state, (iii) an
estate, the income of which is subject to United States federal income taxation
regardless of its source or (iv) a trust which is subject to the supervision of
a court within the United States and the control of one or more United States
persons.    Neither the Company nor its
Subsidiaries holds any “United States property” within the meaning of Section 956
of the United States Internal Revenue Code of 1986, as amended (the “Code”).  The Company was not a “passive foreign
investment company” within the meaning of Section 1297 of the Code in 2004
and does not expect to be a passive foreign investment company in 2005.

 

(e)           The
Company and each of its Subsidiaries are in compliance in all material respects
with all terms and conditions of any tax exemptions, tax holiday or other tax
reduction agreement, approval or order of any government, and the consummation
of the transactions contemplated by this Agreement will not have any adverse
effect on the validity and effectiveness of any such tax exemptions, tax
holiday or other tax reduction agreement, approval or order.  The Schedule of Exceptions lists each
tax incentive granted to or enjoyed by Company or its Subsidiaries, the period
for which such tax incentive applies, and the nature of such tax
incentive.  Company and its Subsidiaries
have complied with all material requirements of applicable law to be entitled
to claim all such incentives. 
Consummation of the transactions contemplated by this Agreement will not
adversely affect the continued qualification for the incentives or the terms or
duration thereof or require any recapture of any previously claimed incentive,
and no consent or approval of any governmental authority is required, other
than as contemplated by the Schedule of Exceptions, prior to the
consummation of the transactions contemplated by this Agreement in order to
preserve the entitlement of the Company or its Subsidiaries to any such
incentive.

 

2.24        Insurance.
The Company will use its best efforts to obtain on commercially
reasonable terms, as soon as practicable after the Closing, fire and casualty
insurance policies and other insurance of the kinds and in the amounts (a)
sufficient for compliance by the Company with all requirements of law and of
all agreements to which the Company is a party and (b) not less than is
customarily obtained by corporations engaged in the same or similar business
and similarly situated.

 

2.25        Environmental
and Safety Laws.  The Company is
not in material violation of any applicable statute, law or regulation relating
to the environment or occupational health and safety, and no material
expenditures are or will be required in order to comply with any such existing
statute, law or regulation.

 

2.26        Customers.  Schedule 2.26 is a true, correct
and complete list of the Company’s ten (10) largest customers by dollar volume
of sales made or services provided for each of the

 

11

 

calendar year
2003 and the calendar year 2004.  In the
last twelve months, none of the Company’s customers, whether or not one of the
Company’s ten (10) largest, has before the scheduled expiration of its
arrangement with the Company canceled or otherwise terminated, or, to the
knowledge of the Company and the Shareholders, threatened to cancel or
otherwise terminate, its relationship with the Company before the scheduled
expiration of its arrangement with the Company. 
The Company has not received any notice and has no knowledge or reason
to believe that any customer intends to cancel or otherwise modify its
relationship with the Company on account of the transactions contemplated
hereby or otherwise.

 

2.27        No
Side Agreements.  Other than this
Agreement, the Shareholders Agreement, and the agreements expressly
contemplated hereby or thereby or disclosed herein or therein, there are no
agreements entered into, or currently intended to be entered into, between or
among the Company and any of its shareholders.

 

2.28        Books
and Records.  The books and
records of the Company, including, without limitation, its share capital record
books and minute books, are complete and correct in all material respects and
accurately and fairly reflect all meetings and other corporate actions of the
Company’s shareholders and its Board of Directors and committees thereof and
all material information relating to its business, the nature, acquisition,
maintenance, location and character of its assets, and the nature of all
transactions giving rise to its obligations or accounts receivable.

 

2.29        Brokers.  Except as set forth on Schedule 2.29,
the Company has no contract, arrangement or understanding with any broker,
finder or similar agent with respect to the transactions contemplated by this
Agreement.

 

2.30        Certain
Business Practices; Compliance with Laws.

 

(a)           Neither
the Company nor, to the knowledge of the Company or the Shareholders, any
director, officer, agent or employee of the Company has (i) used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses
relating to political activity, (ii)  issued any unlawful
payment or other consideration to foreign or domestic government
officials, suppliers, employees, other third parties or to foreign or
domestic political parties or campaigns
or  (iii) violated, any provision of the Foreign Corrupt
Practices Act of 1977, as amended (the “FCPA”), or (iii) made any other
unlawful payment under United States or other law.

 

(b)           No
payments or other consideration granted would violate any provision
of the FCPA if such payments had been made by the Investor, any domestic
concern (as defined in the FCPA) or any other concern which is subject to
the requirements of the FCPA.

 

(c)           The
Company and the Shareholders are in compliance with all laws, statutes, rules
and regulations, including but not limited to those of any federal, state or
local governmental authority in the United States applicable to such Person (as
hereinafter defined), including without limitation the requirements of
Executive Order No. 13224, 66 Fed. Reg. 49079 (September 25, 2001) (the “Order”)
and other similar requirements contained in the Office of Foreign asset
Control, Department of Treasury (“OFAC”) and in any enabling legislation
or other Executive Orders in respect thereof (the Order and such other rules,
regulations, legislation or orders are collectively called the “Orders”).  In addition, the representation and warranty

 

12

 

contained in the immediately preceding sentence would remain accurate
assuming for purposes hereof each of the following alternatives: that the
Investor was (i) the beneficial owner of in excess of 50% but less than 100% of
the fully-diluted shares of the Company and (ii) the beneficial owner of 100%
of the fully-diluted shares of the Company. For purposes of this Section, “Person”
shall mean any corporation, partnership, limited liability company, joint
venture, individual, trust, real estate investment trust, banking association,
federal or state savings and loan institution and any other legal entity,
whether or not a party hereto.

 

(d)           None
of the Company, any Shareholder nor any customer or supplier of the Company or
any other Person with whom the Company has done business at any time since January 1,
2004:

 

(i)            is listed on (a) the
Specially Designated Nationals and Blocked Persons List maintained by OFAC
and/or on any other list of terrorists or terrorist organizations maintained
pursuant to any of the rules and regulations of OFAC or pursuant to any other
applicable laws, regulations or orders, (b) the Denied Persons List maintained
by the United States Department of Commerce (the “DOC”), (c) the
Unverified List maintained by the DOC or (d) the Debarred List maintained by
the United States Department of State 
(such lists are collectively referred to as the “Lists”);

 

(ii)           has been indicted or
arrested for money laundering or for predicate crimes to money laundering,
convicted or pled nolo contendere to charges involving money laundering or
predicate crimes to money laundering;

 

(iii)          has been determined by
competent authority to be subject to the prohibitions contained in the Orders;

 

(iv)          is owned or controlled
by, nor acts for or on behalf of, any Person on the Lists or any other Person
who has been determined by competent authority to be subject to the
prohibitions contained in the Orders;

 

(v)           shall transfer or
permit the transfer of any interest in the Company, any such Shareholders or
any such other party to any Person who is, or whose beneficial owners are,
listed on the Lists; or

 

(vi)          shall assign this
Agreement or any interest herein, to any Person who is listed on the Lists or
who is engaged in illegal activities.

 

The
representation and warranties in this Section 2.30 are not intended in any
way to limit any of the other representations and warranties hereunder,
including but not limited to those set forth in Section 2.12.

 

SECTION 3.  REPRESENTATIONS AND WARRANTIES OF THE
INVESTOR.

 

The Investor
hereby represents and warrants to the Company that:

 

3.1          Authorization.   All corporate action on the part of the
Investor, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this

 

13

 

Agreement and
the Shareholders Agreement and the performance of all obligations of the
Investor hereunder and thereunder at the Closing have been taken or will be
taken prior to the Closing, and this Agreement and the Shareholders Agreement,
when executed and delivered, will constitute valid and legally binding
obligations of the Investor, enforceable in accordance with its terms, except as
such enforcement may be subject to bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect relating to
creditor’s rights and general principles of equity.

 

3.2          Purchase
Entirely for Own Account.  This
Agreement is made with the Investor in reliance upon the Investor’s
representation to the Company, which by the Investor’s execution of this
Agreement the Investor hereby confirms, that the Shares will be acquired for
investment for the Investor’s own account, not as a nominee or agent, and not
with a view to the resale, transfer or distribution of any part thereof, and
that the Investor has no present intention of selling, granting any
participation in, or otherwise distributing the same.  By executing this Agreement, the Investor
further represents that the Investor does not have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of
the Shares.

 

3.3          Reliance
Upon Investor’s Representations.  The
Investor understands that the Shares might not be registered under the
Securities Act on the ground that the sale provided for in this Agreement is
exempt from registration under the Securities Act pursuant to Section 4(2)
thereof, and that the Company’s reliance on such exemption is predicated on the
Investor’s representations set forth herein. 
The Investor realizes that the basis for the exemption may not be
present if, notwithstanding such representations, the Investor has in mind
merely acquiring the Shares for a fixed or determinable period in the future,
or for a market rise, or for sale if the market does not rise.  The Investor has no such intention.

 

3.4          Receipt
of Information.  The Investor
represents that it has had an opportunity to ask questions and receive answers
from the Company regarding the terms and conditions of the sale of the Shares
and the business, properties, prospects, and financial condition of the Company
and to obtain additional information necessary to verify the accuracy of any
information furnished to the Investor or to which the Investor had access; the
foregoing, however, does not limit or modify the representations and warranties
of the Company in Section 2 of this Agreement or the right of the Investor
to rely thereon.

 

3.5          Investment
Experience.  The Investor
represents that its is experienced in evaluating and investing in private
placement transactions of securities of companies in a similar stage of
development and acknowledges that the Investor is able to fend for itself, can
bear the economic risk of the Investor’s investment for an indefinite period of
time, and has such knowledge and experience in financial and business matters
that the Investor is capable of evaluating the merits and risks of the
investment in the Shares.

 

3.6          Accredited
Investor.  The Investor
represents to the Company that it is an “accredited investor” within the
meaning of Rule 501 of Regulation D adopted pursuant to the Securities Act.

 

3.7          Finder’s
Fees.  The Investor neither is
nor will be obligated for any finder’s fee or commission in connection with
this transaction.

 

14

 

3.8          Restricted
Shares.  The Investor understands
that the Shares it is purchasing may not be sold, transferred, or otherwise
disposed of without registration under the Securities Act or an exemption
therefrom, and that in the absence of an effective registration statement
covering the Shares or an available exemption from registration under the
Securities Act, the Shares must be held indefinitely.  In particular, the Investor is aware that the
Shares may not be sold pursuant to Rule 144 promulgated under the Securities
Act unless all of the conditions of that Rule are met.  Among the conditions for use of Rule 144 may
be the availability of current information to the public about the
Company.  Such information is not now
available.

 

3.9          Legends.  Each certificate or other document
evidencing any of the Shares shall be endorsed with the legends substantially
in the form set forth below:

 

(a)           The
following legend under the Securities Act:

 

“THE SHARES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT, OR UNLESS THE COMPANY
HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, SATISFACTORY TO THE
COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

(b)           Any
legend imposed or required by the Company’s Memorandum of Association, Articles
of Association, the Shareholders Agreement or any other applicable securities
laws.

 

SECTION 4.  CONDITIONS PRECEDENT TO INVESTOR’S
OBLIGATIONS.

 

The
obligations of the Investor under Section 1.1 of this Agreement are
subject to the fulfillment to the Investor’s satisfaction of each of the
following conditions as of the Closing Date (unless otherwise indicated):

 

4.1          Representations
and Warranties.  The
representations and warranties of the Company contained in Section 2 and
otherwise made by the Company in writing in connection with the Closing shall
be true, correct and complete in all material respects on and as of the Closing
Date.

 

4.2          Performance;
Due Diligence.  The Company shall
have performed and complied with all agreements, obligations, and conditions
contained in this Agreement that are required to be performed or complied with
by it.  As of the Closing Date, the
Investor shall have been satisfied in its sole discretion with its due diligence
examination of the business, prospects, financial condition, operations,
property and affairs of the Company.

 

4.3          No
Material Adverse Change.  There
shall not have occurred any material change, or event, development, or change
of circumstance that constitutes or could reasonably be expected to constitute,
individually or in the aggregate, a material adverse change in the business
operations, properties, assets, liabilities, financial condition, results of
operations or prospects of the Company.

 

15

 

4.4          Conversion
of Preference Shares.  Any and
all issued and outstanding Preference Shares shall have been converted into
Ordinary Shares of the Company and no outstanding shares of the Company shall
have any rights superior to those of the Ordinary Shares.

 

4.5          Qualifications.  All authorizations, approvals, or
permits, if any, of any governmental authority or regulatory body of the United
States or other country or of any state that are required in connection with
the lawful issuance and sale of the Shares pursuant to this Agreement shall be
duly obtained and effective.

 

4.6          Consents,
Waivers, Etc.  The Company shall
have obtained all consents or waivers, if any, necessary to execute and deliver
this Agreement and the Shareholders Agreement and issue the Shares, and to
carry out the transactions contemplated hereby and thereby, and all such
consents and waivers shall be in full force and effect.  All corporate and other actions or
proceedings and governmental filings necessary to effectuate the terms of this
Agreement, the Shareholders Agreement, and the other agreements and instruments
executed and delivered by the Company in connection herewith shall have been
made or taken, and shall be reasonably satisfactory in form and substance to
the Investor, except for any post-sale filing that may be required under
applicable laws.  In addition to the
documents set forth below in Section 4.7, the Company shall have provided
to the Investor any other information, counterpart original and/or certified or
other copies of documents that the Investor may reasonably request.

 

4.7          Closing
Documentation.  The Investor
shall have received prior to or at the Closing all of the following documents
or instruments, each in form and substance reasonably satisfactory to the
Investor and its counsel:

 

(a)           Director’s Certificate. 
A certificate of a Director of the Company certifying as to: (i) the
Company’s attached Memorandum of Association, (ii) the Company’s attached
Articles of Association, (iii) the Company’s attached Certificate of
Incorporation, (iv) the resolutions of the Company’s Board of Directors
approving this Agreement and the Shareholders Agreement, and authorizing the
issuance and/or sale of the Shares and the other transactions contemplated
hereby, and (v) the incumbency of the officers executing this Agreement, the
Shareholders Agreement, and the other agreements, certificates, documents and
instruments contemplated hereby and thereby. 
The Investor may conclusively rely on such certificate until it shall
receive a further certificate of the Director of the Company canceling or
amending the prior certificate and submitting the signatures of the officers
named in such further certificate.

 

(b)           Certificate of Good Standing.  A certificate of good standing as to the
Company certified by the Registrar of Companies of the Cayman Islands and a
certificate of good standing as to China-HR.com Corporation certified by the
Registrar of Companies of the British Virgin Islands, in each case as of a
reasonably recent date prior to the Closing Date.

 

(c)           Shareholders Agreement. 
The Shareholders Agreement in the form attached hereto as Exhibit A
duly executed and delivered by the parties named therein.

 

(d)           Share Certificates. 
The Company shall have delivered the share certificate or certificates
to the Investor for the Closing pursuant to Section 1.2 hereof.

 

16

 

4.8          Board
of Directors.  Effective as of
the Closing, (Kathy) XU Xin, Gordon KWONG Che Keung, Adrian FU Hau Chak and
(Jason) ZHANG Jianguo as well as Andrew J. McKelvey and two other directors
designated by the Investor shall be the only members of the Company’s Board of
Directors.

 

SECTION 5.  CONDITIONS OF THE COMPANY’S OBLIGATIONS AT
CLOSING.

 

The
obligations of the Company to the Investor under this Agreement are subject to
the fulfillment, on or before the Closing, of each of the following conditions
by the Investor:

 

5.1          Representations
and Warranties.  The
representations and warranties of the Investor contained in Section 3
shall be true and correct on and as of the Closing.

 

5.2          Payment
of Purchase Price.  The Investor
shall have delivered the Purchase Price specified in Section 1.1.

 

5.3          Qualifications.  All authorizations, approvals, or
permits, if any, of any governmental authority or regulatory body of the United
States or other country or of any state that are required in connection with
the lawful issuance and sale of the Shares pursuant to this Agreement shall be
duly obtained and effective.

 

5.4          Shareholders
Agreement.  The Investor shall
execute and deliver the Shareholders Agreement.

 

SECTION 6.  INDEMNIFICATION.

 

6.1          Indemnification
by the Company and the Shareholders.  The Company and each
Shareholder agrees, jointly and severally, to indemnify, defend and save the
Investor and its affiliates, and each of their respective officers, directors,
employees, agents, employee benefit plans and fiduciaries, plan administrators
or other parties dealing with any such plans (each, an “Indemnified Investor
Party”), harmless from and against, and to promptly pay to an Indemnified
Investor Party or reimburse an Indemnified Investor Party for, any and all
liabilities (whether contingent, fixed or unfixed, liquidated or unliquidated,
or otherwise), obligations, deficiencies, demands, claims, suits, actions,
causes of action, assessments, losses, costs, expenses, interest, fines,
penalties, actual and punitive damages and costs or expenses of any and all
investigations, proceedings, judgments, environmental analyses, remediations,
settlements and compromises (including reasonable fees and expenses of
attorneys, accountants and other experts incurred by any indemnified party in
any action or proceeding between such indemnified party and the indemnitor or
between any indemnified party and any third party or otherwise) (individually a
“Loss” and collectively, the “Losses”) sustained or incurred by
any Indemnified Investor Party relating to, resulting from, arising out of or
otherwise by virtue of (i) any misrepresentation or breach of a representation
or warranty made herein by the Company, (ii) any non-compliance with or breach
by the Company or a Shareholder, or any affiliate of the Company or a
Shareholder, of any of their respective covenants or agreements contained in
this Agreement or the Shareholders Agreement to be performed by the Company, a
Shareholder or any affiliate of the Company or a Shareholder or (iii) any
allegations by a third party that is not an Indemnified Investor Party which,
if true, would constitute a misrepresentation or breach of a representation or
warranty made herein by the Company or non-compliance with or breach by the
Company or a Shareholder of any of their respective covenants or agreements
contained in this Agreement or

 

17

 

the
Shareholders Agreement to be performed by the Company, a Shareholder or any of
their respective affiliates.

 

6.2          Indemnification
by the Investor.  The
Investor agrees to indemnify, defend and save the Company and each Shareholder
and his, her or its affiliates, and each of their respective officers,
directors, employees, agents, employee benefit plans and fiduciaries, plan
administrators or other parties dealing with such plans (each, an “Indemnified
Company Party”) harmless from and against, and to promptly pay to an
Indemnified Company Party or reimburse an Indemnified Company Party for, any
and all Losses sustained or incurred by any Indemnified Company Party relating
to, resulting from, arising out of or otherwise by virtue of (i) any
misrepresentation or breach of a representation or warranty made herein by the
Investor, (ii) any non-compliance with or breach by the Investor or its
affiliates of any of the covenants or agreements contained in this Agreement or
the Shareholders Agreement to be performed by the Investor or its affiliates or
(iii) any allegations by a third party that is not an Indemnified Company Party
which, if true, would constitute a misrepresentation or breach of a
representation or warranty made herein by the Investor or non-compliance with
or breach by the Investor of any of its covenants or agreements contained in
this Agreement or the Shareholders Agreement to be performed by the Investor or
its affiliates.

 

6.3          Procedure
for Indemnification.  The following procedure shall apply to the
foregoing agreements to indemnify and hold harmless:

 

(a)           The
party who is seeking indemnification (the “Claimant”) shall give written
notice to the party from whom indemnification is sought (the “Indemnitor”)
promptly after the Claimant learns of the claim or proceeding provided, that the failure to give such notice shall not
relieve the Indemnitor of its obligations hereunder except to the extent it is
actually damaged thereby.

 

(b)           With
respect to any third-party claims or proceedings as to which the Claimant is
entitled to indemnification, the Indemnitor shall have the right to select and
employ counsel of its own choosing to defend against any such claim or
proceeding, to assume control of the defense of such claim or proceeding, and
to compromise, settle or otherwise dispose of the same, if the Indemnitor deems
it advisable to do so, all at the expense of the Indemnitor.  The parties
will fully cooperate in any such action, and shall make available to each other
any books or records useful for the defense of any such claim or
proceeding.  The Claimant may elect to participate in the defense of any
such third party claim, and may, at its sole expense, retain separate counsel
in connection therewith.  Subject to the foregoing (i) the Claimant shall
not settle or compromise any such third party claim without the prior written
consent of the Indemnitor and (ii) the Indemnitor shall not settle or
compromise any such third party claim without the prior written consent of the
Claimant, in each case of (i) and (ii) which consent shall not be unreasonably
withheld.

 

6.4          Limitations
on Indemnification Rights.

 

(a)           Notwithstanding
anything to the contrary contained in this Agreement, it is understood and
agreed that no claim for recovery of indemnifiable damages may be asserted
based on a representation, warranty or applicable portion thereof set forth in
this Agreement or

 

18

 

the Shareholders Agreement after such representation, warranty or
applicable portion thereof has been extinguished in accordance with Section 7.2 hereof

 

(b)           Notwithstanding
anything to the contrary contained in this Agreement, neither the Indemnified
Investor Parties, on the one hand, nor the Indemnified Company Parties, on the
other hand, shall be entitled to be indemnified pursuant to Section 6.1,
Section 6.2 or any other provision hereof unless and until the aggregate
of all Losses incurred by the Indemnified Investor Parties or the Indemnified
Company Parties, as the case may be, exceeds $100,000.

 

(c)           Notwithstanding
anything to the contrary contained in this Agreement, (i) the indemnification
obligations of the Company under Section 6.1 shall not exceed
U.S.$17,500,000, (ii) the indemnification obligations of a Shareholder under Section 6.1
shall not exceed the amount payable by the Company to the Shareholder for the
purchase of such Shareholder’s Ordinary Shares as set forth on Schedule A
hereto and (iii) the indemnification obligations of the Investor under Section 6.2
shall not exceed U.S.$17,500,000.

 

6.5          Waiver
of Claims.  Without in any way limiting the obligations of the
Shareholders under this Agreement, the Shareholders hereby expressly and
irrevocably waive any rights of contribution, subrogation, recoupment,
counterclaim, set-off or indemnification that the Shareholders may have against
the Company.

 

6.6          Sole
Remedy for Damages.  The indemnification obligations of the
parties set forth in this Section 6
shall constitute the sole and exclusive remedy of the parties for the recovery
of money damages with respect to any and all matters arising out of this
Agreement.  Notwithstanding the foregoing, the terms of this Section 6.6 shall not be construed as limiting in any
way whatsoever any remedy to which any party may be entitled other than the
recovery of money damages, including but not limited to equitable remedies,
specific performance, injunctive relief and rescission.

 

SECTION 7.  MISCELLANEOUS.

 

7.1          Entire
Agreement.  This Agreement and
the documents referred to herein constitute the entire agreement among the
parties and no party shall be liable or bound to any other party in any manner
by any warranties, representations, or covenants except as specifically set
forth herein or therein.

 

7.2          Survival
of Warranties.  The warranties,
representations, and covenants of the Company and the Investor contained in or
made pursuant to this Agreement shall survive for a period of two years from
the Closing except for those set forth in Section 2.23, which shall
survive until the termination of the applicable statute of limitations, and
Sections 2.5 and 2.6, which shall survive indefinitely.

 

7.3          Successors
and Assigns.  Except as otherwise
provided herein, the terms and conditions of this Agreement shall inure to the
benefit of and be binding upon the respective successors and assigns of the
parties (including permitted transferees of any Shares).  Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

 

19

 

7.4          Governing
Law/Venue.  This Agreement shall
be governed by and construed under the laws of the State of New York without
regard to that state’s conflicts of laws principles.

 

7.5          Counterparts;
Originals.  This Agreement may be
executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.  This Agreement may be
executed and delivered by telecopy or facsimile and execution in such manner
shall constitute an original.

 

7.6          Titles
and Subtitles.  The titles and
subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

 

7.7          Notices.  All notices, request, demands,
claims, consents and other communications delivered hereunder (whether or not
required to be delivered hereunder) shall be deemed to be sufficient and duly
given if contained in a written instrument (a) delivered by messenger, (b) sent
by facsimile or (c) sent by an internationally recognized courier guaranteeing
delivery within two business days, in each case addressed as follows:

 

	
  (i)

  	
  If to the Company to:

  
	
   

  	
   

  
	
   

  	
  China HR.com Holdings Ltd.

  
	
   

  	
  4/F, CITIC Buildings #2

  
	
   

  	
  19 Jianguomenwai Dajie

  
	
   

  	
  Chaoyang District

  
	
   

  	
  Beijing, China

  
	
   

  	
  Telephone:

  
	
   

  	
  Facsimile:

  
	
   

  	
  Attention: Kathy Xu

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  Morrison and Foerster LLP

  
	
   

  	
  Entertainment Building, 21st Floor

  
	
   

  	
  30 Queen’s Road Central

  
	
   

  	
  Hong Kong

  
	
   

  	
  Telephone: 852-2585-0888

  
	
   

  	
  Facsimile: 852-2585-0800

  
	
   

  	
  Attention: Robert Woll, Esq.

  
	
   

  	
   

  
	
  (ii)

  	
  If to the Investor, to:

  
	
   

  	
   

  
	
   

  	
  Monster Worldwide, Inc.

  
	
   

  	
  622 Third Avenue

  
	
   

  	
  New York, New York 10017

  
	
   

  	
  Telephone: (212) 351-7000

  
	
   

  	
  Facsimile:

  
	
   

  	
  Attention: Andrew J. McKelvey

  

 

20

 

	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  Monster Worldwide, Inc.

  
	
   

  	
  622 Third Avenue

  
	
   

  	
  New York, New York 10017

  
	
   

  	
  Telephone: (212) 351-7000

  
	
   

  	
  Facsimile: (917) 256-8526

  
	
   

  	
  Attention: Myron Olesnyckyj, Esq.

  

 

(iii)          If
to a Shareholder, to the address set forth on Schedule A hereto,

 

or to such
other address as the party to whom such notice or other communication is to be
given may have furnished to each other party in writing in accordance
herewith.  Any such notice or
communication shall be deemed to have been received (i) when delivered, if
delivered by messenger, (ii) when sent, if sent by facsimile on a business day
with receipt electronically confirmed (or, if not sent on a business day, on
the next business day after the date sent by facsimile) and (iii) on the second
business day after dispatch, if sent by an internationally recognized courier
guaranteeing delivery within two business days.

 

7.8          Finder’s
Fees.  Except as set forth on Schedule 2.29,
each party represents that it neither is nor will be obligated for any finder’s
fee or commission in connection with this transaction.  The Company agrees to indemnify and to hold
harmless the Investor from any liability for any commission or compensation in
the nature of a finder’s fee (and the cost and expenses of defending against
such liability or asserted liability) for which the Investor or any of its
officers, partners, employees, or representatives is responsible.  The Investor agrees to indemnify and hold
harmless the Company from any liability for any commission or compensation in the
nature of a finder’s fee (and the costs and expenses of defending against such
liability or asserted liability) for which the Investor or any of its officers,
employees, or representatives is responsible.

 

7.9          Expenses.  The Company shall be responsible for
all of the costs and expenses in connection with the negotiation, execution,
delivery, and performance of this Agreement.

 

7.10        Amendments
and Waivers.  Any term of this
Agreement may be amended and the observance of any term of this Agreement may
be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of (a) the Company, and (b) the
Investor.  Any amendment or waiver
effected in accordance with this paragraph shall be binding upon each holder of
any securities purchased under this Agreement at the time outstanding, each
future holder of all such securities, and the Company.  No delay or failure on the part of any party
hereto in exercising any right, power or privilege under this Agreement shall
impair any such right, power or privilege or be construed as a waiver of any
default or any acquiescence therein.  No
single or partial exercise of any such right, power or privilege shall preclude
the further exercise of such right, power or privilege, or the exercise of any
other right, power or privilege.

 

7.11        Severability.  If one or more provisions of this
Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of the Agreement shall be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms.

 

21

 

7.12        Further
Assurances.  The parties agree,
from time to time and without further consideration, to execute and deliver
such further documents and take such further actions as reasonably may be
required to implement and effectuate the transactions contemplated in this
Agreement.

 

7.13        No
Third-Party Beneficiaries.  This
Agreement is intended to inure to the benefit of the parties hereto only, and
no other person shall have any rights, express or implied, by reason of this
Agreement.

 

7.14        Specific
Performance.  The rights of the
parties under this Agreement are unique and, accordingly, the parties shall
have the right, in addition to such other remedies as may be available to any
of them at law or in equity, to enforce their rights hereunder by actions for
specific performance in addition to any other legal or equitable remedies they
might have to the extent permitted by law.

 

22

 

IN WITNESS
WHEREOF, the parties have executed this Ordinary
Shares Purchase Agreement as of the date first above written.

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  CHINA HR.COM
  HOLDINGS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Xu Xin

  
	
   

  	
  Name: (Kathy)
  Xu Xin

  
	
   

  	
  Title:   Chairperson
  of the Board

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INVESTOR:

  
	
   

  	
   

  
	
   

  	
  TMP
  WORLDWIDE LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ S.J.
  Cooney

  
	
   

  	
  Name: S.J.
  Cooney

  
	
   

  	
  Title:   Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SHAREHOLDERS:

  
	
   

  	
   

  
	
   

  	
  E-CAREER
  HOLDINGS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Xu Xin

  
	
   

  	
  Name: (Kathy)
  Xu Xin

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  GOOD
  CONNECTION ENTERPRISES LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jiexian
  Zhang

  
	
   

  	
  Name: (James)
  Jiexian Zhang

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MACINTOSH
  ASSOCIATES LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Wong Siu Kong

  
	
   

  	
  Name: Wong
  Siu Kong

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SURBITON
  INVESTMENTS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adrian
  Fu Hau Chak

  
	
   

  	
  Name: Adrian
  Fu Hau Chak

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FULL MOON
  RESOURCES LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leung
  Pak To

  
	
   

  	
  Name: (Francis)
  Leung Pak To

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAUCHAMP
  INTERNATIONAL LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yip Shiu
  Kwong

  
	
   

  	
  Name:
  (James) Yip Shiu Kwong

  
	
   

  	
  Title:
  Director

  

 

 

SCHEDULE A

 

Shareholders

 

	
  Name
  and Address of Shareholder

  	
   

  	
  Number of Ordinary Shares Purchased at Closing

  
	
   

  	
   

  	
   

  
	
  E-Career Holdings Ltd

  	
   

  	
  6,480,279
  Ordinary Shares

  
	
  Huntlaw Building

  	
   

  	
   

  
	
  P.O. Box 2908

  	
   

  	
   

  
	
  George Town

  	
   

  	
   

  
	
  Grand Cayman

  	
   

  	
   

  
	
  Cayman Islands

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Good Connection Enterprises Limited

  	
   

  	
  3,471,577
  Ordinary Shares

  
	
  P.O. Box 957

  	
   

  	
   

  
	
  Offshore Incorporations Centre

  	
   

  	
   

  
	
  Road Town, Tortola

  	
   

  	
   

  
	
  British Virgin Islands

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Macintosh Associates Limited

  	
   

  	
  373,770
  Ordinary Shares

  
	
  P.O. Box 957

  	
   

  	
   

  
	
  Offshore Incorporations Centre

  	
   

  	
   

  
	
  Road Town, Tortola

  	
   

  	
   

  
	
  British Virgin Islands

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Surbiton Investments Limited

  	
   

  	
  3,459,616
  Ordinary Shares

  
	
  P.O. Box 71

  	
   

  	
   

  
	
  Craigmuir Chambers

  	
   

  	
   

  
	
  Road Town, Tortola

  	
   

  	
   

  
	
  British Virgin Islands

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Full Moon Resources Limited

  	
   

  	
  1,916,693
  Ordinary Shares

  
	
  P.O. Box 957

  	
   

  	
   

  
	
  Offshore Incorporations Centre

  	
   

  	
   

  
	
  Road Town, Tortola

  	
   

  	
   

  
	
  British Virgin Islands

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Beauchamp International Limited

  	
   

  	
  268,815
  Ordinary Shares

  
	
  P.O. Box 957

  	
   

  	
   

  
	
  Offshore Incorporations Centre

  	
   

  	
   

  
	
  Road Town, Tortola

  	
   

  	
   

  
	
  British Virgin Islands

  	
   

  	
   

  

 

 

Schedule
of Exceptions of China HR.com Holdings Ltd.

 

                The
Schedule of Exceptions to this Agreement have been omitted. The omitted
Schedule of Exceptions consists of:

 

	
  Schedule 2.5

  	
   

  	
  Capitalization and Voting
  Rights

  
	
   

  	
   

  	
   

  
	
  Schedule 2.6

  	
   

  	
  Valid Issuance of Shares

  
	
   

  	
   

  	
   

  
	
  Schedule 2.7

  	
   

  	
  Subsidiaries

  
	
   

  	
   

  	
   

  
	
  Schedule 2.8

  	
   

  	
  Contracts and Other
  Commitments

  
	
   

  	
   

  	
   

  
	
  Schedule 2.9

  	
   

  	
  Related-Party Transactions

  
	
   

  	
   

  	
   

  
	
  Schedule 2.11

  	
   

  	
  Permits

  
	
   

  	
   

  	
   

  
	
  Schedule 2.13

  	
   

  	
  Litigation

  
	
   

  	
   

  	
   

  
	
  Schedule 2.17

  	
   

  	
  Financial Information

  
	
   

  	
   

  	
   

  
	
  Schedule 2.18

  	
   

  	
  Changes

  
	
   

  	
   

  	
   

  
	
  Schedule 2.19

  	
   

  	
  Patents and Trademarks

  
	
   

  	
   

  	
   

  
	
  Schedule 2.20

  	
   

  	
  Employee; Employee
  Compensation

  
	
   

  	
   

  	
   

  
	
  Schedule 2.21

  	
   

  	
  Employee Confidentiality
  Agreements

  
	
   

  	
   

  	
   

  
	
  Schedule 2.23

  	
   

  	
  Taxes

  
	
   

  	
   

  	
   

  
	
  Schedule 2.26

  	
   

  	
  Customers

  
	
   

  	
   

  	
   

  
	
  Schedule 2.29

  	
   

  	
  Brokers

  

 

                The
Schedule of Exceptions to this Agreement will be furnished to the Securities
and Exchange Commission supplementally upon request.Exhibit
10.2

 

CERTAIN PORTIONS
OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934.  THE OMITTED MATERIALS HAVE BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

SHAREHOLDERS AGREEMENT

 

THIS SHAREHOLDERS
AGREEMENT (the “Agreement”) is made and dated as
of this 1st day of February 2005 by and among the individuals
and entities listed as Existing Shareholders of the Company on Schedule A
hereto (each an “Existing Shareholder” and,
collectively, the “Existing Shareholders”),
TMP Worldwide Limited, a company organized under the laws of the United Kingdom
(the “Investor”, and collectively with the
Existing Shareholders, the “Shareholders”
and each a “Shareholder”) and China HR.com
Holdings Ltd., an exempted company limited by shares incorporated under the
laws of the Cayman Islands (the “Company”).  Monster Worldwide, Inc., a Delaware
corporation (“Monster”), which is the ultimate
parent company of the Investor, is also a party to certain specified provisions
of this Agreement as more fully set forth below.

 

BACKGROUND

 

WHEREAS, the Shareholders
are holders of all of the issued and outstanding ordinary shares of the
Company, U.S.$.05 par value per share (the “Ordinary Shares”);

 

WHEREAS, the Company, the
Investor and certain Shareholders are parties to an Ordinary Shares Purchase
Agreement (the “Purchase Agreement”), dated January 30,
2005, pursuant to which the Investor is contemporaneously herewith acquiring 22,815,357
Ordinary Shares from the Company (the “Shares”);

 

WHEREAS, the Company and
certain of the Existing Shareholders are parties to the Share Subscription
Agreement, dated March 24, 2000 (the “2000 Subscription
Agreement”), which the parties thereto desire to terminate in
connection with entering into this Agreement and the Purchase Agreement;

 

WHEREAS, the Company and
certain of the Existing Shareholders are parties to the Subscription Agreement,
dated July 13, 2001 (the “2001 Subscription
Agreement”), which the parties thereto desire to terminate in
connection with entering into this Agreement and the Purchase Agreement;

 

WHEREAS, the Company and
certain of the Existing Shareholders are parties to the Shareholders’
Agreement, dated March 29, 2000 (the “Prior Agreement”),
as amended by the Supplemental Agreement, dated July 13, 2001 (the “Prior Agreement Supplement”), each of which the parties
thereto desire to terminate in connection with the entering into this Agreement
and the Purchase Agreement; and

 

WHEREAS, the parties’
obligations under the Purchase Agreement are conditioned upon the execution and
delivery of this Agreement by the Existing Shareholders, the Investor and the

 

 

Company and the
termination of the 2000 Subscription Agreement, the 2001 Subscription
Agreement, the Prior Agreement and the Prior Agreement Supplement
(collectively, the “Old Agreements”)
by the parties thereto.

 

NOW, THEREFORE, in
consideration of the mutual promises and covenants set forth in this Agreement,
and intending to be legally bound, the parties agree as follows:

 

SECTION 1.  DEFINITIONS.

 

1.1          “Affiliate”
shall mean, with respect to any specified person, (i) any other person that
owns (directly or indirectly), individually or as part of a group (as
determined pursuant to Rule 13d-5 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)),
greater than fifty percent (50%) of the voting shares or other capital interest
of such specified person, (ii) any other person of whom greater than fifty
percent (50%) of the voting shares or other capital interest is owned by
(directly or indirectly), individually or as part of a group (as determined
pursuant to Rule 13d-5 under the Exchange Act, by such person, and (iii) any
other person controlling, controlled by or under common control with such
person.

 

1.2          “Call
Fair Market Value” per Ordinary Share shall be equal to the amount
determined by [*].

 

1.3          “Fully
Diluted Ordinary Shares” shall mean the Company’s outstanding Ordinary
Shares and Ordinary Shares issued or issuable upon conversion of any of the
Company’s outstanding preference shares, or upon exercise of outstanding
rights, options and warrants to acquire Ordinary Shares and any other Ordinary
Share equivalents.

 

1.4          “Put
Fair Market Value” per Ordinary Share shall be equal to the amount
determined by [*].

 

1.5          “Qualified
IPO” shall mean a firm commitment initial public offering by the Company of
its Ordinary Shares pursuant to a registration statement under the United
States Securities Act (i) with an aggregate offering price of at least Fifty
Million United States Dollars (U.S.$50,000,000) and (ii) at a per share price
equal to at least U.S.$3.00 (subject to adjustment for share dividends,
recapitalizations, splits and similar events).

 

1.6          [*]

 

1.7          “Securities
Act” shall mean the Securities Act of 1933, as amended.

 

* Confidential

 

2

 

SECTION 2.  PROPOSED TRANSFERS BY THE SHAREHOLDERS.

 

2.1          Prohibitions.

 

(a)           Prohibitions During Standstill Period.  Except as otherwise
provided herein, within three (3) years from the date of this Agreement (the “Standstill Period”), no Shareholder may purchase, sell or transfer
his, her or its Ordinary Shares, or any options, warrants, or other securities
of any type whatsoever that are convertible into Ordinary Shares.  Ordinary Shares and any options, warrants or
other securities of any type whatsoever that are convertible into Ordinary
Shares are sometimes collectively referred to as “Equity
Securities”.

 

(b)           Other Prohibitions. 
Except for the Investor and its Affiliates, no Shareholder that is not a
natural person may permit the transfer of any equity securities or other
interests in such Shareholder at any time.

 

2.2          Right of First Refusal.

 

(a)           Transfer Notice.  Except
in the case of the Specified Redemption (as defined below), if at any time
after the end of the Standstill Period, any Shareholder (the “Selling Shareholder”) proposes, directly or indirectly, to
transfer by sale, assignment or gift any Ordinary Shares or any other Equity
Securities to one or more third parties pursuant to an understanding with such
third parties (a “Transfer”), then the Selling
Shareholder shall give the Company and the other Shareholders (the “Non-Selling Shareholders”), written notice of the Selling
Shareholder’s intention to make the Transfer (the “Transfer
Notice”), which Transfer Notice shall include (i) a description of
the Equity Securities to be transferred (the “Offered
Shares”), (ii) the identity of the prospective transferee(s) and
(iii) the consideration and the material terms and conditions upon which the
proposed Transfer is to be made.  The
Transfer Notice shall certify that the Selling Shareholder has received a firm
offer from the prospective transferee(s) and in good faith believes a binding
agreement for the Transfer is obtainable on the terms set forth in the Transfer
Notice.  The Transfer Notice shall also
include a copy of any written proposal, term sheet or letter of intent or other
agreement relating to the proposed Transfer.

 

(b)           Non-Selling Shareholders’ Option.  Each of the Non-Selling Shareholders shall
have an option for a period of thirty (30) days from its receipt of the
Transfer Notice to elect to purchase up to its Right of First Refusal Pro Rata
Portion (as defined below) of the Offered Shares at the same price and subject
to the same material terms and conditions as described in the Transfer
Notice.  With respect to each Non-Selling
Shareholder, its “Right of First Refusal Pro Rata Portion” shall mean the
number of Offered Shares multiplied by a fraction, the numerator of which shall
equal the number of Equity Securities then held by the Non-Selling Shareholder,
and the denominator of which shall equal the total number of Equity Securities
held by all Non-Selling Shareholders, in each case on a fully diluted basis
assuming full conversion, exercise and exchange of all options, warrants and
other convertible securities.  Each
Non-Selling Shareholder may exercise its right of first refusal by notifying
the Selling Shareholder and the Company in writing before expiration of the
thirty (30) day period as to the

 

3

 

number of Offered Shares which it wishes to
purchase.  Within five (5) days after the
expiration of the foregoing period, the Selling Shareholder shall give the
Company and the Non-Selling Shareholders written notice of the amount of
Offered Shares proposed to be sold after giving effect to the exercise of
rights under this Section 2.2(b) (the “Second Notice”).

 

2.3          Right of Co-Sale. At any time after the end of the
Standstill Period, to the extent the Non-Selling Shareholders do not exercise
their right of refusal as to all of the Offered Shares pursuant to Section 2.2
above, the Non-Selling Shareholders shall have the right to participate in the
proposed Transfer, to the extent of their respective Right of Co-Sale Pro Rata
Portion (as defined below), on the same terms and conditions as specified in
the Transfer Notice.  With respect to
each Non-Selling Shareholder, the Right of Co-Sale Pro Rata Portion shall mean
the number of Offered Shares proposed to be transferred to a prospective
transferee after giving effect to the exercise of rights under Section 2.2(b)
above multiplied by a fraction, the numerator of which shall equal the number
of Equity Securities then held by a Non-Selling Shareholder, and the
denominator of which shall equal the number of Equity Securities held by all
Shareholders, in each case on a fully diluted basis assuming full conversion,
exercise and exchange of all options, warrants and other convertible
securities.  Each Non-Selling Shareholder
shall exercise its right of co-sale by delivering a written notice to the
Selling Shareholder and the Company prior to the expiration of thirty (30) days
after receipt of the Second Notice, indicating the number of shares of Equity
Securities the Non-Selling Shareholder wishes to sell under its right to
participate. To the extent that the Non-Selling Shareholders exercise such
right of co-sale, the number of shares of Equity Securities that the Selling
Shareholder may sell in the Transfer shall be correspondingly reduced.

 

2.4          Non-Exercise of Rights. 
To the extent that the Non-Selling Shareholders have not exercised their
right to purchase the Offered Shares nor their right to participate in the sale
of the Offered Shares within the time periods specified in Section 2.2 and
Section 2.3, the Selling Shareholder shall have a period of thirty (30)
days from the expiration of the thirty (30)-day time period set forth in Section 2.3
in which to sell the Offered Shares to the third-party transferee(s) identified
in the Transfer Notice upon terms and conditions (including the purchase price)
no more favorable to the transferee(s) than those specified in the Transfer
Notice. In the event the Selling Shareholder does not consummate the sale or
disposition of the Offered Shares within the thirty (30) day period set forth
in this Section 2.4, the Non-Selling Shareholders’ first refusal rights
and co-sale rights shall continue to be applicable to any subsequent
disposition of the Offered Shares by the Selling Shareholder until such right
lapses in accordance with the terms of this Agreement. Furthermore, the
exercise or non-exercise of the rights of the Non-Selling Shareholders under
this Section 2.4 to purchase Equity Securities from the Selling
Shareholder or to participate in sales of Equity Securities by the Selling
Shareholder shall not adversely affect their rights to make subsequent
purchases from the Selling Shareholder of Equity Securities or subsequently
participate in sales of Equity Securities by the Selling Shareholder.

 

2.5          Closing.  Each
Non-Selling Shareholder shall effect its participation in a sale pursuant to Section 2.3
hereof by promptly delivering to the Selling Shareholder for transfer to the
prospective purchaser one or more certificates, properly endorsed for transfer,
which represent that number of Equity Securities which the Non-Selling
Shareholder elects to sell.  The share
certificate or certificates that the Non-Selling Shareholders deliver to the
Selling Shareholder pursuant to Section 2.3 shall be transferred to the
prospective purchaser in

 

4

 

consummation of the sale
of the Offered Shares pursuant to the terms and conditions specified in the
Transfer Notice, and the Selling Shareholder shall concurrently therewith remit
to each Non-Selling Shareholder that portion of the sale proceeds to which such
Non-Selling Shareholder is entitled by reason of its participation in such
sale.  To the extent that any prospective
purchaser, or purchasers, prohibits such assignment or otherwise refuses to
purchase shares or other securities from a Non-Selling Shareholder in
connection with the exercise of its rights of co-sale hereunder, the Selling
Shareholder shall not sell to such prospective purchaser or purchasers any
Offered Shares unless and until, simultaneously with such sale, the Selling
Shareholder shall purchase such shares or other securities from the Non-Selling
Shareholder.  To the extent that a
Non-Selling Shareholder elects to purchase any of the Offered Shares covered in
the Transfer Notice directly from the Selling Shareholder, then such Selling Shareholder
shall within ninety (90) days of the date of the Transfer Notice (or, if
earlier, simultaneous with the consummation of the sale of the Offered Shares
pursuant to the terms and conditions specified in the Transfer Notice) deliver
certificate(s) for such shares to the Non-Selling Shareholder who shall deliver
to the Selling Shareholder the consideration of the type and on the terms set
forth in the Transfer Notice.

 

SECTION 3.  EXEMPT TRANSFERS; PROHIBITIONS.

 

3.1          Certain Transfers. 
The provisions of Section 2 shall not apply to:  (a) any transfer of Equity Securities to the
ancestors, descendants, siblings or spouse of a Shareholder, or to trusts,
family limited partnerships or similar estate planning entities for the benefit
of such persons including such Shareholder; (b) any transfer of Equity
Securities to a subsidiary, affiliate, parent, partner, limited partner,
retired partner, member, retired member or shareholder of a holder of Equity
Securities, and (c) any bona fide gift, provided that,
in any such case described in (a) through (c) above the Shareholder gives the
Board of Directors of the Company prior written notice of such transfer or gift
and the transferee or donee shall first furnish the Company with a written
agreement, in form and substance reasonably acceptable to the Board of
Directors, to be bound by and comply with all provisions of this Agreement as
well as the terms of any other restrictive agreement to which such Equity
Securities are subject.  Such transferred
Equity Securities shall remain “Equity
Securities” hereunder, and such pledgee, transferee or donee shall
be treated as a “Shareholder” for purposes of this
Agreement.

 

3.2          Public Offering; Company Transfers.  Notwithstanding the foregoing, the provisions
of Section 2 shall not apply to the sale of any Equity Securities (a) to
the public in a Qualified IPO; or (b) to the Company, including but not limited
to the sale to the Company of 15,970,750 Ordinary Shares from Shareholders at
an aggregate purchase price of Thirty Five Million United States Dollars
(U.S.$35,000,000) and a purchase price per share equal to the purchase price
per share payable by the Investor under the Purchase Agreement (the “Specified Redemption”).

 

3.3          Prohibited Transfers. 
No Existing Shareholder shall either directly or indirectly, sell,
assign, mortgage, transfer, pledge, create a security interest in or lien upon,
encumber, give, place in trust, hypothecate, or otherwise in any manner
voluntarily or involuntarily dispose of, any or all of its Ordinary Shares or
any other Equity Securities except and only to the extent expressly permitted
by the provisions of Section 2, Sections 3.1 and 3.2, Section 4 and Section 5.

 

5

 

SECTION 4.  PROHIBITED TRANSFERS; EFFECT OF BREACH.

 

4.1          Put Option Right. 
In the event a Shareholder (the “Breaching Shareholder”)
should sell or attempt to sell any Equity Securities in contravention of the
provisions of Section 2 of this Agreement (a “Prohibited
Transfer”), the other Shareholders (the “Non-Breaching
Shareholders”), in addition to such other remedies as may be
available at law, in equity or hereunder, shall have the put option provided in
Section 4.2 below, and the Breaching Shareholder who breached or attempted
to breach such provisions shall be bound by the applicable provisions of such
option.

 

4.2          Put Option.  In
the event of a Prohibited Transfer, the Non-Breaching Shareholders shall have
the right to sell to the Breaching Shareholder the number of Equity Securities
equal to the number of Equity Securities the Non-Breaching Shareholders would
have been entitled to transfer to the transferee in the Prohibited Transfer had
the Prohibited Transfer under Section 2 hereof been effected pursuant to
and in compliance with the terms hereof. 
Such sale shall be made on the following terms and conditions:

 

(a)           the
price per share at which the Equity Securities are to be sold shall be equal to
the greater of (i)  the price per share
paid by the transferee in the Prohibited Transfer and (ii) the Call Fair Market
Value.  The Breaching Shareholder shall
also reimburse the Non-Breaching Shareholders for any and all fees and
expenses, including legal fees and expenses, incurred pursuant to the exercise
or the attempted exercise of the Non-Breaching Shareholders’ rights under Section 2;

 

(b)           within
ninety (90) days after the later of the dates on which the Non-Breaching
Shareholders (i) received notice of the Prohibited Transfer or (ii) otherwise
became aware of the Prohibited Transfer, the Non-Breaching Shareholders shall,
if exercising the option created hereby, deliver to the Breaching Shareholder
the certificate or certificates representing Equity Securities to be sold, each
certificate to be properly endorsed for transfer;

 

(c)           the
Breaching Shareholder shall, upon receipt of the certificate or certificates
for the Equity Securities to be sold by the Non-Breaching Shareholders,
pursuant to this Section 4.2, pay the aggregate purchase price therefor
and the amount of reimbursable fees and expenses, as specified in Section 4.2(a),
in cash or by other means acceptable to the Non-Breaching Shareholders; and

 

(d)           notwithstanding
the foregoing, any attempt by a Breaching Shareholder to transfer Equity
Securities in violation of Sections 2 or 3 hereof shall be void, and the Company
agrees that it will not effect such a transfer nor will it treat any alleged
transferee as the holder of such Equity Securities without the written consent
of the Non-Breaching Shareholders.  The
exercise of any Non-Breaching Shareholder’s rights under the provisions of this
Section 4.2 shall not be deemed to be consent to or ratification of a
violation of Section 2 hereof.

 

SECTION 5.  PUT AND CALL OPTION.

 

5.1          Put Option.  In
the event that the Company has not consummated a Qualified IPO prior to the third
anniversary of the date of this Agreement, the Investor hereby grants to the
Existing Shareholders the right and option (the “Put Option”),
exercisable at any time during the

 

6

 

eighteen (18) month period
immediately following the third anniversary of the date of this Agreement (the “Exercise Period”), to cause the Investor to purchase all,
but not less than all, of each and every Existing Shareholder’s Ordinary Shares
(the “Put Option Shares”) for the Put Fair
Market Value.

 

5.2          Exercise of Put Option. 
The Put Option must be exercised by each and every Existing Shareholder,
if at all, during the Exercise Period only by the delivery during the Exercise
Period of a written notice, signed by all of the Existing Shareholders, to the
Company and the Investor (the “Put Option Notice”)
specifying the (i) exercise of the Put Option, (ii) the Put Fair Market Value
and (iii) the proposed delivery date of the Put Option Shares which shall be at
least twenty (20) days from the date of the Put Option Notice (the “Put Option Closing Date”). 
In the event the Put Option is not exercised during the Exercise Period
in accordance with the terms hereof, the Put Option shall automatically expire
and be of no force or effect.

 

5.3          Put Option Closing. 
Upon the Existing Shareholders’ election to exercise the Put Option, on
the Put Option Closing Date each Existing Shareholder shall deliver (a) the
share certificate or certificates and a duly executed stock power in favor of
the Investor or its designee representing the Put Option Shares to the Investor
and (b) a duly executed ordinary shares purchase agreement in substantially the
form of the Purchase Agreement (the “Put Purchase Agreement”),
containing, among other things, (i) representations and warranties of the
Company and the Investor which shall speak on and as of the date of signing and
closing of such transaction and shall in other respects be identical to the
representations and warranties provided in Section 2 of the Purchase
Agreement and representations and warranties providing that upon delivery of
the Put Option Shares the Investor shall acquire good, valid and marketable
title to the Put Option Shares free and clear of any liens, claims or
encumbrances imposed by any action or omission of the Existing Shareholders or
the Company, provided, however, that (x) the Schedule of Exceptions thereto shall
be updated to reflect the then-current situation of the Company and its
subsidiaries, and (y) the financial information shall reflect the two most
recent fiscal years plus the most recent practicable interim period, (ii)
agreements and indemnities of the Company, the Existing Shareholders and the
Investor identical to those provided in Sections 6 and 7 of the Purchase Agreement
and (iii) covenants prohibiting the Existing Shareholders and their Affiliates
from directly or indirectly (x) competing in or into the Peoples Republic of
China and any other countries in which or into which the Company or its
subsidiaries conducts business or (y) soliciting, servicing or hiring any
then-current or former clients or employees of the Company or its subsidiaries,
in each case for a period of twenty-four (24) months from the date of the
closing of the Put Purchase Agreement and (iv) confidentiality agreements of
the Existing Shareholders.  It is
understood and agreed that the Investor may by written notice to the Company
refuse to consummate the Put Option in the event that (a) the information reflected
in the Schedule of Exceptions to the proposed Put Purchase Agreement as
compared to the Schedule of Exceptions attached to the Purchase Agreement
materially adversely affects the value of the Company and its subsidiaries or
the value to the Investor of the proposed investment, (b) there exists any
suit, action, proceeding, legislation, ruling, order or injunction (or
reasonable threat thereof) or set of facts restraining or prohibiting the
consummation of the transactions or which would compel the Investor to dispose
of, discontinue or materially restrict the operations of a significant portion
of the business of the Company and its subsidiaries, including but not limited
to any governmental or regulatory authority prohibition or limitation
materially affecting the Investor’s right to own shares of the Company or any
of its direct or

 

7

 

indirect subsidiaries,
including without limitation China-HR.com Corporation, China HR.com (Hong Kong)
Limited, Ecareer (Shanghai) Limited or Ecareer (Beijing Limited), (c) there has
been a material adverse change in the assets, condition (financial or
otherwise), operating results, business activities or operations of the Company
and its subsidiaries, or (d) the Company or any Existing Shareholder have
breached one or more provisions of this Agreement and such breaches,
individually or in the aggregate, materially adversely affect the value of the
Company and its subsidiaries or the value to the Investor of the proposed
investment.  The exercise of the Investor’s
rights under the immediately preceding sentence is sometimes called a “Put Refusal”.  Any
disputes over whether or not the Put Refusal grounds set forth above have been
met shall be submitted to binding arbitration in accordance with Section 5.15
below.  If the Investor refuses to or
fails to purchase the Put Option Shares for any reason other than a Put Refusal
(a “Put Breach”), including, without
limitation, the lack of funds to pay the Put Fair Market Value, then the
Existing Shareholders shall have the right and option to purchase at [*] (the “Repurchase Right”).
If the Existing Shareholders exercise the Repurchase Right, then the Repurchase
Right shall be their sole and exclusive remedy arising out of or in connection
with a Put Breach.  On the Put Option
Closing Date, the Investor shall concurrently therewith remit to each
Shareholder the Put Fair Market Value to which such Existing Shareholder is
entitled by reason of its exercise of the Put Option.  In the event the Company is unable to deliver
the Put Purchase Agreement in a form satisfactory to the Investor or the
Investor has exercised its right of Put Refusal, then the Investor shall have
no further obligation to purchase the Put Option Shares and the option
contemplated by this Section 5.3 shall automatically expire and be of no
further force or effect.  Notwithstanding
the foregoing, the Put Option Closing shall not occur until the Put Fair Market
Value is conclusively determined.

 

5.4          Company Call Option. 
In the event that the Investor exercises its right of Put Refusal, the
Investor hereby grants to the Company, the right and option (the “Company Call Option”), exercisable at any time after the
date the Investor exercises its right of Put Refusal and for a period of thirty
(30) days thereafter (the “Company Exercise Period”),
to elect to purchase from the Investor, all, but not less than all, of the
Ordinary Shares held by the Investor (the “Company Option Shares”)
for the Call Fair Market Value.

 

5.5          Exercise of Company Call Option.  The Company Call Option may be exercised by
the Company, if at all, during the Company Exercise Period only by the delivery
during the Company Exercise Period of a written notice to the Investor (the “Company Option Notice”) specifying the (i) exercise of the
Company Call Option, (ii) the Call Fair Market Value and (iii) the proposed
delivery date of the Company Option Shares which shall be at least twenty (20)
days from the date of the Company Option Notice (the “Company
Option Closing Date”).  In the
event the Company Call Option is not properly exercised during the Company
Exercise Period in accordance with the terms hereof, the Company Call Option
shall automatically expire and be of no force or effect and the Existing
Shareholders shall be entitled to the Existing Shareholders Call Option (as
hereinafter defined).

 

5.6          Company Call Option Closing.  Upon the Company’s election to exercise the
Company Call Option, on the Company Option Closing Date the Investor shall
deliver a share certificate or certificates and a duly executed stock power in
favor of the Company representing

 

* Confidential

 

8

 

its Company Option Shares
to the Company and the Company shall concurrently therewith remit to the
Investor the Call Fair Market Value to which the Investor is entitled by reason
of the Company’s exercise of the Company Call Option.  Upon delivery of the Company Option Shares to
the Company, the Company shall acquire good, valid and marketable title to the
Company Option Shares free and clear of any liens, claims or encumbrances
imposed by any action or omission of the Investor.

 

5.7          Existing Shareholder Call Option.  In the event that the Investor exercises its
right of Put Refusal and the Company does not properly exercise the Company
Call Option within the Company Exercise Period, the Investor hereby grants to
each Existing Shareholder, the right and option (the “Existing
Shareholder Call Option”), exercisable at any time after the
expiration of the Company Exercise Period and before the date which is one
hundred twenty (120) days after the date the Investor exercises its right of
Put Refusal (the “Existing Shareholder
Exercise Period”), to elect to purchase from the Investor on a
pro-rata basis, all, but not less than all, of the Ordinary Shares held by the
Investor (the “Existing Shareholder Option Shares”)
for the Call Fair Market Value.

 

5.8          Exercise of Existing Shareholder Call Option.  The Existing Shareholder Call Option may be
exercised by each and every Existing Shareholder, if at all, during the
Existing Shareholder Exercise Period only by the delivery during the Existing
Shareholder Exercise Period of a written notice to the Investor (the “Existing  Shareholder Option Notice”)
specifying the (i) exercise of the Existing Shareholder Call Option, (ii) the
Call Fair Market Value and (iii) the proposed delivery date of the Existing
Shareholder Option Shares which shall be at least twenty (20) days after the
date of the Existing Shareholder Option Notice (the “Existing
Shareholder Option Closing Date”). 
In the event the Existing Shareholder Call Option is not properly
exercised during the Existing Shareholder Exercise Period in accordance with
the terms hereof, the Existing Shareholder Call Option shall automatically
expire and be of no force or effect.

 

5.9          Existing Shareholder Call Option Closing.  Upon the Existing Shareholders’ election to
exercise the Existing Shareholder Call Option, on the Existing Shareholder
Option Closing Date the Investor shall deliver a share certificate or
certificates and a duly executed stock power in favor of each of the Existing
Shareholders representing their pro-rata portion Existing Shareholder Option
Shares to the Existing Shareholders and each Existing Shareholder shall
concurrently therewith remit to the Investor its pro-rata portion of the Call
Fair Market Value to which the Investor is entitled by reason of the
Shareholders’ exercise of the Shareholder Call Option.  Upon delivery of the Existing Shareholder
Option Shares to the Company, the Existing Shareholders shall acquire good,
valid and marketable title to the Existing Shareholder Option Shares free and
clear of any liens, claims or encumbrances imposed by any action or omission of
the Investor.

 

5.10        Call Option.  The
Existing Shareholders hereby grant to the Investor the right and option (the “Call Option”), exercisable at any time during the Exercise
Period, to elect to purchase from the Existing Shareholders all, but not less than all, of the Company’s issued and
outstanding Ordinary Shares owned by the Existing Shareholders (the “Call Option Shares”) at the Call Fair Market Value.

 

9

 

5.11        Exercise of Call Option. 
The Call Option must be exercised by the Investor, if at all, during the
Exercise Period only by the delivery during the Exercise Period of a written
notice to the Company (the “Call Option Notice”)
specifying the (i) exercise of the Call Option, (ii) the Call Fair Market Value
and (iii) the proposed delivery date of the Call Option Shares which shall be
at least twenty (20) days from the date of the Call Option Notice (the “Call Option Closing Date”). 
In the event the Call Option is not properly exercised during the
Exercise Period in accordance with the terms hereof, the Call Option shall
automatically expire and be of no force or effect.

 

5.12        Call Option Closing. 
Upon the Investor’s election to exercise the Call Option, on the Call
Option Closing Date each Existing Shareholder shall deliver (a) share
certificate or certificates and duly executed stock powers in favor of the
Investor or its designee representing the Call Option Shares to the Investor
and (b) a duly executed ordinary shares purchase agreement in substantially the
form of the Purchase Agreement (the “Call
Purchase Agreement”), containing, among other things, (i)
representations and warranties of the Company and the Investor which shall
speak on and as of the date of signing and closing of such transaction and
shall in other respects be identical to the representations and warranties
provided in Section 2 of the Purchase Agreement and representations and
warranties providing that upon delivery of the Call Option Shares the Investor
shall acquire good, valid and marketable title to the Call Option Shares free
and clear of any liens, claims or encumbrances imposed by any action or
omission of the Existing Shareholders or the Company, provided,
however, that (x) the Schedule of
Exceptions thereto shall be updated to reflect the then-current situation of
the Company and its subsidiaries, and (y) the financial information shall
reflect the two most recent fiscal years plus the most recent practicable
interim period, (ii) agreements and indemnities of the Company, the Existing
Shareholders and the Investor identical to those provided in Sections 6 and 7
of the Purchase Agreement, and (iii) covenants prohibiting the Existing
Shareholders and their Affiliates from directly or indirectly (x) competing in
or into the Peoples Republic of China and any other countries in which or into
which the Company or its subsidiaries conducts business or (y) soliciting,
servicing or hiring any then-current or former clients or employees of the
Company or its subsidiaries, in each case for a period of twenty-four (24)
months from the date of the closing of the Call Purchase Agreement and (iv)
confidentiality agreements of the Existing Shareholders.  It is understood and agreed that the Investor
may by written notice to the Company refuse to consummate the Call Option in
the event that (a) the information reflected in the Schedule of Exceptions
to the proposed Call Purchase Agreement as compared to the Schedule of
Exceptions attached to the Purchase Agreement materially adversely affects the
value of the Company and its subsidiaries or the value to the Investor of the
proposed investment, (b) there exists any suit, action, proceeding,
legislation, ruling, order or injunction (or reasonable threat thereof) or set
of facts restraining or prohibiting the consummation of the transactions or which
would compel the Investor to dispose of, discontinue or materially restrict the
operations of a significant portion of the business of the Company and its
subsidiaries, including but not limited to any governmental or regulatory
authority prohibition or limitation materially affecting the Investor’s right
to own shares of the Company or any of its direct or indirect subsidiaries,
including without limitation China-HR.com Corporation, China HR.com (Hong Kong)
Limited, Ecareer (Shanghai) Limited or Ecareer (Beijing Limited), (c) there has
been a material adverse change in the assets, condition (financial or
otherwise), operating results, business activities or operations of the Company
and its subsidiaries or (d) the Company or any Existing Shareholder have
breached one or more provisions of this Agreement and such

 

10

 

breaches, individually or
in the aggregate, materially adversely affect the value of the Company and its
subsidiaries or the value to the Investor of the proposed investment.  The exercise of the Investor’s rights under
the immediately preceding sentence is sometimes called a “Call Refusal”.  Any disputes over whether or not the Call
Refusal grounds set forth above have been met shall be submitted to binding
arbitration in accordance with Section 5.15 below.  On the Call Option Closing Date, the Investor
shall concurrently therewith remit to the Existing Shareholders the Call Fair
Market Value to which the Existing Shareholders are entitled by reason of the
Investor’s exercise of the Call Option.  In the event the Company is unable
to deliver the Call Purchase Agreement in a form reasonably satisfactory to the
Investor or the Investor has exercised its right of Call Refusal, then the
Investor shall have no further obligation to purchase the Call Option
Shares.  Notwithstanding the foregoing,
the Call Option Closing shall not occur until the Call Fair Market Value is
conclusively determined.

 

5.13        Payment of Put Fair Market Value/Call Fair Market Value.  The Put Fair Market Value or Call Fair Market
Value, as the case may be, payable to the Existing Shareholders by the Investor
under any provision of this Section 5 may, at the election of the
Investor, be paid in a combination of cash and unregistered shares of the
common stock of the Investor’s parent company, Monster (“Monster
Shares”), provided that Monster Shares shall constitute no more than
one-half (1/2) of the Put Fair Market Value or Call Fair Market Value, as the
case may be.  In the event the Investor
elects to deliver Monster Shares, such Monster Shares shall be valued at the
average of the closing prices per Monster Share as reported by the Nasdaq
National Market for each day in the ten (10) business day period ending three
(3) days before the applicable closing date and any Existing Shareholder
receiving Monster Shares shall become party to a registration rights agreement
which shall provide, among other things, for the filing of a registration
statement registering any Monster Shares issued hereby within ten (10) business
days from the Put Option Closing Date or Call Option Closing Date, as the case
may be, and customary indemnification. 
Notwithstanding anything to the contrary contained herein, if the
Investor, on the one hand, or the Existing Shareholders, on the other hand, in
their respective reasonable discretion, object to the computation of the Call
Fair Market Value or the Put Fair Market Value, as the case may be, the
Investor and the Existing Shareholders shall jointly retain a firm of
recognized financial experts who shall be instructed to conclusively establish
Call Fair Market Value or Put Fair Market Value, as the case may be.  The costs of such financial expert shall be
paid by the Company and the determination of the Call Fair Market Value or the
Put Fair Market Value by such financial expert shall be conclusive.

 

5.14        Conflicting Option
Exercises.  In the event
that both the Put Option Notice and the Call Option Notice are provided in
accordance with this Agreement and the transactions contemplated by the earlier
of such notices have not yet been consummated in accordance herewith, the Put
Option Notice shall prevail (irrespective of the order in which the competing
notices have been given).

 

5.15        Binding Arbitration.  If
any dispute arises over whether or not the Put Refusal or Call Refusal grounds
have been met or the Existing Shareholders seek any remedy for a Put Breach
other than the Repurchase Right, injunctive relief or specific performance, the
Existing Shareholders shall provide written notice of their objection or intent
to pursue remedies for a Put Breach other than the Repurchase Right to the
Investor no later than thirty (30) days after the Investor’s exercise of the
Put Refusal, the Call Refusal or the occurrence of a Put Breach, as the

 

11

 

case may be.  Promptly thereafter, such dispute shall be
submitted to binding arbitration at Hong Kong International Arbitration Centre
in accordance with the commercial UNCITRAL Arbitration Rules then in effect
(the “UNCITRAL Rules”).  The arbitration tribunal shall consist of
three (3) arbitrators experienced in New York corporate law and matters of this
nature who shall be appointed according the UNCITRAL Rules.  The language of the arbitration shall be
English.

 

SECTION 6.  LEGEND.

 

6.1          Legend.  Each
certificate representing Equity Securities now or hereafter owned by any
Shareholder, or issued to any person in connection with a transfer from a
Shareholder pursuant hereto shall be endorsed with the following legend:

 

“THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND
CONDITIONS OF A CERTAIN SHAREHOLDERS AGREEMENT BY AND AMONG THE COMPANY AND
CERTAIN SHAREHOLDERS OF THE COMPANY CONTAINING, AMONG OTHER THINGS CERTAIN
AGREEMENTS TO VOTE SUCH SECURITIES AS SPECIFIED IN SUCH AGREEMENT.  COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON
WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.”

 

6.2          Stop Orders.  Each
Shareholder agrees that the Company may instruct its transfer agent to impose
transfer restrictions on the shares represented by certificates bearing the
legend referred to in Section 6.1 above to enforce the provisions of this
Agreement and the Company agrees to do so promptly.  The legend shall be removed upon termination
of this Agreement.

 

SECTION 7.  AFFIRMATIVE COVENANTS OF THE COMPANY.

 

The Company hereby
covenants and agrees as follows:

 

7.1          Financial Information. 
The Company shall furnish the following reports to the Investor:

 

(a)           as
soon as practicable after the end of each fiscal year of the Company, and in
any event within sixty (60) days thereafter, management accounts for the
preceding fiscal year prepared by the Company in accordance with International
Standards on Accounting (“ISA”)
consistently applied and setting forth in each case in comparative form the
figures for the previous fiscal year;

 

(b)           as
soon as practicable after the end of each fiscal year of the Company, and in
any event within ninety (90) days thereafter, a consolidated balance sheet of
the Company and its subsidiaries, if any, as of the end of such fiscal year and
the related consolidated income statement, consolidated statement in changes in
equity and consolidated cash flow statement for the fiscal year then ended,
prepared in accordance with ISA consistently applied and setting forth in each
case in comparative form the figures for the previous fiscal year, and audited
and

 

12

 

certified by a firm of independent public accountants
of recognized international standing selected by the Board of Directors of the
Company;

 

(c)           as
soon as practicable after the end of each of the first three fiscal quarters of
each fiscal year of the Company, and in any event within forty-five (45) days
after the end of each of the first three fiscal quarters, a consolidated
balance sheet of the Company and its subsidiaries, if any as of the end of such
quarter, and the related consolidated income statement, consolidated statement
in changes in equity and consolidated cash flow statement of the
Company and its subsidiaries, if any, for the current fiscal year to date,
unaudited but prepared in accordance with ISA consistently applied and setting
forth in comparative form the figures for the corresponding periods of the
previous fiscal year, together with a comparison of such statements to the
Budget (as herein defined), subject to changes resulting from immaterial normal
year-end audit adjustments, all in reasonable detail and certified by the
principal financial officer of the Company; and

 

(d)           as
soon as practicable after the end of each month of each fiscal year of the
Company, and in any event within twenty (20) days after the end of each month,
a consolidated balance sheet of the Company and its subsidiaries, if any, as of
the end of such month, and the related consolidated income statement,
consolidated statement in changes in equity and consolidated cash flow
statement of the Company and its subsidiaries, if any, as of the end of such
month, unaudited but prepared in accordance with ISA consistently applied and
setting forth in comparative form the figures for the corresponding periods of
the previous fiscal year for the material business units, together with a
comparison of such statements to the Budget, subject to changes resulting from
immaterial normal year-end audit adjustments, all in reasonable detail and
certified by the principal financial officer of the Company.

 

Notwithstanding
anything to the contrary set forth above, each report delivered pursuant to
this Section 7.1 shall specifically (i) reconcile net income as reported
on the consolidated income statement according to ISA with net income according
to generally accepted accounting principles in the United States (“GAAP”) and such reconciliation shall be provided to the
Investor in a tabular format with each material reconciling item described and
quantified in reasonable detail, and (ii) indicate the amount of each material
variation between the amount of any line item appearing in the consolidated
balance sheet prepared in according to ISA and the amount of any line item
appearing on the consolidated balance sheet prepared according to GAAP.

 

7.2          Additional Information and Rights.

 

(a)           Upon
notification by the Investor, the Company shall permit the Investor to visit
and inspect any of the properties of the Company and its subsidiaries,
including its books of account and other records, including without limitation,
contracts, agreements and any other obligations enforceable against the Company
or its subsidiaries (and make copies thereof and take extracts therefrom), and
to discuss its affairs, finances and accounts with the officers of the Company
and its subsidiaries and its independent public accountants, all at such
reasonable times and as often as the Investor may reasonably request.

 

13

 

(b)           The
Company shall deliver to the Investor annually (and in any event no later than
thirty (30) days before the end of each fiscal year) a budget and business plan
of the Company and its subsidiaries for the next fiscal year and the next five
fiscal years (the “Budget”), in
such manner and form as approved by the Board of Directors of the Company,
including the Investor Directors (as hereinafter defined), which shall include
at least a projection of income and a projected cash flow statement for each
fiscal quarter in such fiscal year.  The
Company will use its best efforts to operate within the Budget, as approved by
the Board of Directors of the Company, applicable to each respective fiscal
year.  It is understood that no Budget
nor deviation therefrom shall be operative unless it is affirmatively approved
by at least one of the Investor Directors.

 

(c)           The
provisions of Section 7.1 and this Section 7.2 shall not be in
limitation of any rights which the Investor may have with respect to the books
and records of the Company and its subsidiaries, or to inspect their properties
or discuss their affairs, finances and accounts, under applicable law.

 

(d)           The
Investor hereby agrees to use all proprietary and confidential information
obtained from the Company under this Section 7 solely in connection with
its investment in the Company, to hold in confidence and trust and not to
misuse or disclose any confidential information provided pursuant to this Section 7.

 

7.3          Meetings of Directors. 
The Company shall hold meetings of the Company’s Board of Directors not
less than four (4) times a year on a quarterly basis, which may be held in
person or by conference telephone by means of which all persons participating
in the meeting can hear each other.

 

7.4          Expenses of Directors. 
The Company shall promptly reimburse in full, each director of the
Company who is not an employee of the Company attending a meeting of the Board
of Directors or any committee for all of his or her reasonable out-of-pocket
expenses incurred in attending each meeting of the Board of Directors of the
Company or any committee thereof.

 

7.5          Prompt Payment of Taxes, etc.  The
Company will promptly pay and discharge, or cause to be paid and discharged,
when due and payable, all lawful taxes, assessments and governmental charges or
levies imposed upon the income, profits, property or business of the Company or
any subsidiary; provided, however, that any such
tax, assessment, charge or levy need not be paid if the validity thereof shall
currently be contested in good faith by appropriate proceedings and if the
Company shall have set aside on its books adequate reserves with respect
thereto, and provided, further, that the Company will pay all such taxes,
assessments, charges or levies forthwith upon the commencement of proceedings
to foreclose any lien which may have attached as security therefor.

 

7.6          Tax Matters.  Upon
the Investor’s request, the Company shall provide the Investor with such
information as it shall reasonably request in connection with each of the
Investor’s and/or its Affiliates’ preparation of their respective tax returns
or to make any tax election that may be available to the Investor and/or its
Affiliates.  Neither the Company nor any

 

14

 

of its subsidiaries shall
make or agree to make any election for any United States tax purpose without
the prior written consent of the Investor.

 

7.7          Insurance.  The Company will keep its assets
and those of its subsidiaries which are of an insurable character insured by
financially sound and reputable insurers against loss or damage by fire,
explosion or other risks customarily insured against by companies in the
Company’s line of business, in amounts sufficient to prevent the Company or any
subsidiary from becoming a co-insurer and not in any event less than 100% of
the insurable value of the property insured; and the Company will maintain and
cause its subsidiaries to maintain, with financially sound and reputable
insurers, insurance against other hazards and risks and liability to persons
and property to the extent and in the manner customary for companies in similar
businesses similarly situated and to the extent available on commercially
reasonable terms.  In addition to the
foregoing, the Company shall obtain and maintain in full force and effect, from
financially sound and reputable insurers, directors and officers insurance in a
minimum amount deemed reasonable by the Board of Directors for the benefit of
each of its directors and officers.

 

7.8          Compliance with Certain Requirements.  The Company and all its subsidiaries shall
duly observe and conform to all requirements of governmental authorities
relating to the conduct of their businesses or their properties or assets.  The Company will use its best efforts to
ensure that the representations and warranties set forth in Sections 2.11,
2.12, 2.19, 2.23, 2.25, 2.28 and 2.30 of the Purchase Agreement remain true,
correct and complete from and after the date hereof on each and every day
during the term of this Agreement as if made on and as of each day during the
term hereof.  The Company shall use, and
cause its subsidiaries to use, commercially reasonable efforts to comply with
the best industry practices in the respective jurisdictions where it or they do
business.

 

7.9          Maintenance of Corporate Existence, etc.  The Company and its subsidiaries shall
maintain in full force and effect their corporate existence, permits, rights
and franchises necessary to conduct their business and all licenses and other
rights to use patents, processes, licenses, trademarks, trade names or
copyrights owned or possessed by it or any subsidiary necessary to conduct
their business.

 

7.10        Regulatory Compliance. 
The Company will use commercially reasonable efforts, and will cause its
subsidiaries, including without limitation, China-HR.com Corporation, China
HR.com (Hong Kong) Limited, Ecareer (Beijing) Limited, Ecareer (Shanghai)
Limited, and Beijing YiJiaXin (E-Channel) Enterprise Management and Consultant
Co. Ltd. (“E-Channel”) to use commercially reasonable
efforts, to obtain or maintain all such licenses, permits, certificates and approvals
necessary for ownership and operation of their business in China as soon as
practicable after the date of this Agreement and the Company hereby agrees that
the Investor shall have the right to approve any arrangements relating to the
relationship of the Company and/or any of its subsidiaries or affiliates with
E-Channel, including without limitation, the right to approve any new
shareholder or shareholders of E-Channel.

 

SECTION 8.  NEGATIVE COVENANTS OF THE COMPANY.

 

Without
the prior written approval of a majority of the members of the Board of
Directors and at least one Investor Director, the Company will not take or
permit to occur, and the

 

15

 

Shareholders will ensure
that the Company does not take or permit to occur, any of the actions set forth
in this Section 8.

 

8.1          Management.

 

(a)           Recruit,
hire or dismiss the Company’s chief executive officer or any employee or
officer who shall be assigned duties or responsibilities substantially similar
to those of such officer; or

 

(b)           Recruit,
hire or dismiss any of the Company’s chief financial officer or chief
technology officer, or any employee or officer who shall be assigned duties or
responsibilities substantially similar to those of such officers.

 

8.2          Affiliate Transactions. 
Enter into, or permit any subsidiary to enter into, any transaction with
any of its Affiliates, except for normal employment arrangements and benefit
programs on reasonable terms and except as approved by a majority of the members
of the Board who do not have an interest in any such transaction; provided, however, nothing in this Section 8.2 shall be
deemed to prohibit transactions between the Company and its subsidiaries or
between such subsidiaries.

 

8.3          Capital Expenditures. 
Make, or permit any subsidiary to make in any fiscal year, capital
expenditures or financial commitments (including, without limitation, payments
with respect to capital leases as determined in accordance with GAAP)
exceeding, in the aggregate and, on a consolidated basis, U.S.$75,000, except
as set forth in the Budget.

 

8.4          Employee Benefit Plan. 
Create or change any management or employee incentive plan, or any share
plan, option plan, or other agreement or understanding or right to purchase
capital shares of the Company, including but not limited to employee options.

 

8.5          Security Interests. 
Become subject to any mortgage, pledge, lien, encumbrance, charge,
restriction (including without limitation restrictions on transfer) or any
other security interest on any of the Company’s or its subsidiaries
intellectual property.

 

8.6          Indebtedness. 
Incur indebtedness in excess of U.S.$1,000,000 in the aggregate.

 

8.7          Joint Venture. 
Enter into a strategic acquisition, strategic alliance, joint venture or
any other relationship in a transaction or transactions with a third party.

 

8.8          Dividends; Redemption. 
Pay or declare any dividend or make any distribution on, redeem,
purchase or otherwise acquire any Ordinary Shares, except for the Specified
Redemption.

 

8.9          Issuance of Securities.  Issue
or enter into a contract to issue any Equity Securities.

 

16

 

SECTION 9.  ANTI-DILUTION PROTECTION.

 

The Investor shall
have the right and option to purchase up to its pro rata share of New
Securities (as defined below) which the Company may, from time to time, propose
to sell and issue to any third party, on the same terms and at the same price
that the Company proposes to sell and issue to such third party.  The Investor’s pro rata share, for purposes
of this right, is the ratio of the number of Fully Diluted Ordinary Shares
owned by the Investor immediately prior to the issuance of New Securities to
the total number of Fully Diluted Ordinary Shares outstanding immediately prior
to the issuance of New Securities.  For
the purposes of clarity, it is the parties intent that from and after the
closing of the transactions contemplated by the Purchase Agreement and the
concurrent closing of the Specified Redemption, and except as contemplated by Section 5
and Section 10.2 hereof, the Investor shall at all times during the term
of this Agreement own 40% of the Company’s Fully Diluted Ordinary Shares. The
reference to 40% in the immediately preceding sentence shall from time to time
automatically be deemed increased or decreased, as the case may be, as a result
of increases or decreases in the Investor’s percentage ownership resulting
directly from the Investor’s exercise of its rights under Sections 2 or 4.2
above. This right shall be subject to the following provisions:

 

(a)           “New Securities” shall mean any share capital (including
Ordinary Shares) of the Company whether now authorized or not, and rights,
options or warrants to purchase such share capital, and securities of any type
whatsoever that are, or may become, convertible into share capital; provided that the term “New
Securities” does not include: (i) securities
purchased or issued under the Purchase Agreement; (ii) securities
issued in a Qualified IPO; (iii) securities
issued in connection with any share split or share dividend of the Company as a
result of which the of ratio of the number of Fully Diluted Ordinary Shares
owned by the Investor to the total number of Fully Diluted Ordinary Shares
outstanding remains unchanged; and (iv) securities issued pursuant to the
conversion or exercise of convertible or exercisable securities or options
issued or granted as of the date hereof under the Company’s 2005 Stock
Incentive Plan.

 

(b)           In
the event the Company proposes to undertake an issuance of New Securities, it
shall give the Investor written notice of its intention, describing the type of
New Securities, their price and the general terms upon which the Company
proposes to issue the same.  If the
Investor elects to exercise its right to anti-dilution protection under this Section 9,
the Investor shall, within twenty (20) business days of its receipt of the
notice from the Company, deliver a written notice to the Company setting forth
the number of New Securities it wishes to purchase from the Company and the
aggregate purchase price.  The Company
shall issue to the Investor its pro rata share of the New Securities in
exchange for such purchase price.

 

(c)           The
provisions of this Section 9 shall not in any way limit the other provisions
of this Agreement, including but not limited to the provisions of Sections 7
and 8 hereof.

 

SECTION 10.  QUALIFIED
IPO.

 

10.1        Investor Assistance. 
At the Company’s request, the Investor shall in good faith cooperate
with the Company in order to facilitate the Company’s plans to effect a
Qualified IPO,

 

17

 

and in connection with
the foregoing the Investor shall take such actions as may be reasonably
requested from time to time by the Company. 
The parties understand and hereby agree that the Investor will not sell
any Shares as part of a Qualified IPO.

 

10.2        Qualified IPO Shares. 
In the event the Company consummates a Qualified IPO prior to the third
anniversary of the date of this Agreement, at or concurrently with the sale of
the Company’s Ordinary Shares pursuant to such Qualified IPO, the Investor
shall have the right to acquire directly from the Company at the Qualified IPO
price per share, an interest in the Company which subsequent to the consummation
of its Qualified IPO shall constitute fifty-one percent (51%) of the Company’s
Fully Diluted Ordinary Shares and shall entitle the Investor to seventy percent
(70%) of the voting power of the Company’s Fully Diluted Ordinary Shares.

 

SECTION 11.  BOARD
OF DIRECTORS.

 

(a)           Each
of the parties to this Agreement shall take all actions within their respective
power, including but not limited to, the voting of all share capital of the
Company owned by them, required to cause no less than forty percent (40%) of the
Board of Directors of the Company (the “Board of Directors”)
to consist of representatives designated from time to time by the Investor (the
“Investor Directors”) at all times. The
representatives initially designated to the Board of Directors by the Investor
shall be Andrew J. McKelvey and two other directors to be designated by the
Investor on or after the date of this Agreement.  The appointment of the three representatives of
the Investor shall be effective as of the date of this Agreement or, if later,
the date of designation by the Investor. 
Notwithstanding the foregoing, at no time shall the Investor Directors
constitute less than forty percent (40%) of the members of the Board of
Directors, in the event the size of the Board of Directors is increased or
decreased from time to time.

 

(b)           In
the event any director elected to the Board of Directors after being designated
by the Investor as a candidate for membership pursuant to this Section 11
dies, resigns, is removed or otherwise ceases to serve as a member of the Board
of Directors, the Company shall give notice thereof to the Investor and the
Investor shall promptly designate a successor and notify the Board of Directors
of its selection, and the Board of Directors shall act promptly to fill the vacancy
with such designee in accordance with this Section 11, the Company’s
Memorandum of Association and Articles of Association.

 

(c)           Each
party hereto hereby agrees to cast such party’s votes for, or give such party’s
written consent to, the removal of a designee of the Investor on the Board of
Directors at any time upon receipt of instructions in writing to such effect,
signed by the Investor.

 

(d)           The
Board of Directors of the Company shall have no right to fill any vacancy on
the Board for which the Investor has the right to designate a candidate unless
such vacancy is filled by a designee of the Investor having the right to
designate such director.

 

(e)           The
directors of the Company shall be insured by the Company as set forth in Section 7.8,
through the purchase of director’s liability insurance in such amount as is
determined by the Board of Directors, and shall be indemnified by the Company
to the fullest extent provided under applicable law.

 

18

 

(f)            The
voting agreements contained herein are coupled with an interest and may not be
revoked during the term of this Agreement.

 

SECTION 12.  NON-COMPETITION;
CONFIDENTIALITY.

 

12.1        Non-competition.  (a)  Each of the Investor and
Monster agrees that for a period of three (3) years after the date hereof, it and
its subsidiaries will not engage, directly or indirectly, in the Internet job
board business in or into China, it being understood, however, that the
foregoing shall not in any way be deemed to preclude: (i) posting of jobs or
acquisition of resume licenses, the viewing of jobs or posting of resumes, or
use of any other services or products by persons or entities based in China on
any websites of Monster or its subsidiaries not based in or targeted to China
(except as otherwise provided in (ii) and (iii) below; (ii) any and all current
or future activities of or relating to the Hong Kong job board of Monster or
its subsidiaries, currently located at www.monster.com.hk
<<http://www.monster.com.hk>>, including but not limited to posting
of jobs or acquisition of resumes licenses, the viewing of jobs or posting of
resumes, or use of any other services or products by persons or entities based
in China, whether or not such site is targeted to China (including but not
limited to programs similar to the “Destination China” program currently
available through <<http://destinationchina.comonster.com.hk>>);
and (iii) any and all activities
relating to the recruitment advertising business of Monster and its subsidiaries
including, without limitation, the placement of help wanted advertisements in
newspapers and online job boards of those who may be competitors of the
Company, whether or not such businesses are located in or targeted to China, it
being understood that the recruitment advertising business of Monster and its
subsidiaries is, among other things, in the process of applying for
representative office status in Shanghai and is anticipated to be involved in
the development of interactive products and online job boards for clients
within China and elsewhere.

 

(b)           Each
Existing Shareholder agrees that for a period of three (3) years after the date
hereof, neither it nor any of its affiliates will, directly or indirectly,
engage in the Internet job board business in or into China.

 

(c)           Notwithstanding
the foregoing, nothing contained in this Section 12.1 shall prohibit the
Investor, Monster, the Existing Shareholders nor any of their respective
affiliates from owning not more than an aggregate of five percent (5%) of any
class of stock of any company engaged directly or indirectly in the business in
China which is listed on a national securities exchange or traded in the
over-the-counter market. The Investor, Monster and each Existing Shareholder
acknowledges that the restrictions set forth herein are reasonable, valid and
necessary for the protection of the legitimate interest of the Company.

 

12.2        Confidentiality. 
The Company and each Existing Shareholder agrees to maintain the
confidentiality of the transactions contemplated by this Agreement and the
Purchase Agreement and not to use the Monster name or any abbreviation or
derivation thereof or hold itself out as having an affiliation with Monster,
except to the extent otherwise (i) required by law or the regulations of
applicable securities exchanges or (ii) consented to by the Investor or
Monster.  It is understood that a press
release and certain other general public disclosure is intended to be issued
and made by the Company in connection with the consummation of the transactions
contemplated hereby and by the Purchase Agreement and that such press release
and

 

19

 

the form and content of
any such general public disclosure shall be subject to the prior review and prior
approval of Monster.

 

SECTION 13.  MISCELLANEOUS.

 

13.1        Governing Law. 
This Agreement shall be governed by and construed under the laws of the
State of New York, without regard to that state’s conflicts of laws principles.

 

13.2        Amendment.  Any
provision of this Agreement may be amended and the observance thereof may be
waived (either generally or in a particular instance and either retroactively
or prospectively) only by the written consent of the Company, the Investor,
Monster and the holders of a majority of the then outstanding Ordinary Shares.

 

13.3        Termination.  The
rights and obligations set forth in Sections 7.1 and 7.2 shall terminate upon
the closing of a public offering by the Company which results in the Company
being required to file periodic reports under the Exchange Act.  Except for those set forth in Sections 12 and
13.11, all other rights and obligations established in this Agreement shall
terminate upon the earliest of (a) the closing
of a Qualified IPO (subject to concurrent compliance with the provisions of Section 10.2
above), (b) the closing of the Company’s sale
of all or substantially all of its assets or the acquisition of the Company by
another entity by means of a merger or consolidation resulting in the exchange
of the Company’s outstanding share capital for securities or consideration
issued, or caused to be issued, by the acquiring entity, its subsidiary or
another third party, provided that such sale has been approved by at least one
Investor Director or (c) the closing, if any, of the options contemplated by
Sections 5.3, 5.6, 5.9 or 5.12 hereof.

 

13.4        Notices.  All
notices and other communications required or permitted hereunder shall be in
writing and shall be mailed by United States first-class mail, postage prepaid,
sent by facsimile or delivered by a courier addressed (a) if
to a Shareholder, as may be indicated on Schedule A hereto, or at
such other address as such holder or permitted assignee shall have furnished to
the Company in writing, (b) if to the Investor, at the address or facsimile
number indicated on the signature page hereof or (c) if
to the Company, at the address or facsimile number indicated for the Company on
the signature page hereof.  All such
notices and other written communications shall be effective on the date of
mailing, the time of confirmed facsimile transmission or the date of delivery
if delivered by a courier, as the case may be. 
Changes of address, telephone or facsimile numbers may be made by
notices provided for herein.

 

13.5        Severability.  In
the event one or more of the provisions of this Agreement should, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other
provisions of this Agreement, and this Agreement shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.

 

13.6        Counterparts; Originals. 
This Agreement may be executed in two or more counterparts and delivered
via facsimile signature, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.  This Agreement may be

 

20

 

executed or delivered by
telecopy or facsimile and execution in such manner shall constitute an
original.

 

13.7        Entire Agreement; Consent; Termination of Agreements.  This Agreement constitutes the entire
agreement between the parties relative to the specific subject matter
hereof.  Any previous agreement among the
parties relative to the specific subject matter hereof is superseded by this
Agreement.  By their execution of this
Agreement, the parties hereto who were parties to the Old Agreements are, with
respect to the transactions contemplated hereby and by the Purchase Agreement,
waiving their rights of participation arising out of, and giving such consent
as may otherwise be required under the terms of each of the Old
Agreements.  By their execution of this
Agreement, the Company and the parties hereto who were parties to any of the
Old Agreements agree that the rights and obligations set forth in each of the
Old Agreements are automatically terminated and of no further force and effect
as of the date hereof.

 

13.8        Further Assurances. 
The parties agree, from time to time and without further consideration,
to execute and deliver such further documents and take such further actions as
reasonably may be required to implement and effectuate the transactions
contemplated in this Agreement.

 

13.9        Successors and Assigns; Shareholders. 
Except as otherwise provided herein, this Agreement will
bind and inure to the benefit of and be enforceable by the Company and its
successors and assigns and the Shareholders and the Investor and any subsequent
holder of Ordinary Shares and the respective successors and assigns of each of
them, so long as they hold such shares. 
None of the provisions hereof shall create, or be construed or deemed to
create, any right to employment in favor of any person by the Company.  This Agreement is not intended to create any
third party beneficiaries. 
Notwithstanding anything to the contrary contained herein, any holder of
Ordinary Shares may become party to this Agreement in such capacity by
executing and delivering a counterpart signature page to this Agreement and if
accepted by the Company and the Investor through delivery of their respective
signature pages to such holder, no further action or consent shall be required
by any Shareholder.  Any person so added
to this Agreement shall be listed on Schedule A hereto and shall
thereafter be deemed to be a Shareholder for all purposes of this
Agreement.  For the purposes of clarity,
it is understood and agreed that the term “Shareholder” as used herein, does
not include or refer to the Investor.

 

13.10      Attorney Fees.  In
the event that any dispute among the parties to this Agreement should result in
litigation, the prevailing party in such dispute shall be entitled to recover
from the losing party all fees, costs and expenses of enforcing any right of
such prevailing party under or with respect to this Agreement, including
without limitation, such reasonable fees and expenses of attorneys and
accountants, which shall include, without limitation, all fees, costs and
expenses of appeals.

 

13.11      “Market Stand-Off” Agreement. Except as otherwise
contemplated by or permitted in this Agreement and except for transfers to
Affiliates, the Investor agrees that from the date hereof until the date which
is 365 days after the effective date of a registration statement which is
actually utilized in conjunction with a Qualified IPO (the “Stand-Off
Period”), it shall not sell or otherwise transfer or dispose of any
Ordinary Shares of the Company held by the Investor.  Further, except as otherwise contemplated by
or permitted in this Agreement, the

 

21

 

Investor agrees that
during the Stand-Off Period, the Investor will not purchase or otherwise
acquire additional Ordinary Shares.  The
foregoing restrictions shall expire with respect to the Investor on the third
anniversary of the date of this Agreement if the Company has not consummated a
Qualified IPO prior to such date.  The
Company may impose stop-transfer instructions with respect to the Ordinary
Shares held by the Investor subject to the foregoing restriction until the end
of the Stand-Off Period.

 

13.12      Specific Performance. 
The parties hereby declare that it is impossible to measure in money the
damages which will accrue to a party hereto by reason of a failure to perform
any of the obligations under this Agreement. 
Therefore, in addition to all other rights and remedies, all parties
hereto shall have the right to specific performance of the obligations of the
other parties under this Agreement, and if any party hereto shall institute any
action or proceeding to enforce the provisions hereof, any person (including
the Company) against whom such action or proceedings is brought hereby waives
the claim or defense therein that such party has or have an adequate remedy at
law, and such person shall not urge in any such action or proceeding the claim
or defense that such remedy at law exists.

 

22

 

The foregoing
Shareholders Agreement is hereby executed as of the date first above written.

 

	
   

  	
  CHINA HR.COM
  HOLDINGS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/
  Xu Xin

  
	
   

  	
   

  	
  Name:

  	
  (Kathy)
  Xu Xin

  
	
   

  	
   

  	
  Title:

  	
  Chairperson
  of the Board

  
	
   

  	
   

  	
  Address:

  	
  4/F,
  CITIC Buildings #2

  
	
   

  	
   

  	
   

  	
  19
  Jianguomenwai Dajie

  
	
   

  	
   

  	
   

  	
  Chaoyang
  District

  
	
   

  	
   

  	
   

  	
  Beijing,
  China

  
	
   

  	
   

  	
  Telephone:

  
	
   

  	
   

  	
  Fax:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INVESTOR:

  
	
   

  	
   

  
	
   

  	
  TMP
  WORLDWIDE LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/
  S.J.  Cooney

  
	
   

  	
   

  	
  Name:

  	
  S.J.
  Cooney

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
  Address:

  	
  622 Third Avenue

  
	
   

  	
   

  	
   

  	
  New York, New York 10017

  
	
   

  	
   

  	
  Telephone: 
  (212) 351-7000

  
	
   

  	
   

  	
  Facsimile: 
  (917) 256-8526

  
						

 

 

	
   

  	
  EXISTING SHAREHOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  E-CAREER
  HOLDINGS LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/
  Xu Xin

  
	
   

  	
  Name:

  	
  (Kathy)
  Xu Xin

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOOD
  CONNECTION ENTERPRISES LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jiexian Zhang

  
	
   

  	
  Name:
  (James) Jiexian Zhang

  
	
   

  	
  Title:
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MACINTOSH
  ASSOCIATES LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wong Siu Kong

  
	
   

  	
  Name:  Wong Siu Kong

  
	
   

  	
  Title:
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SURBITON
  INVESTMENTS LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adrian Fu Hau Chak

  
	
   

  	
  Name:  Adrian Fu Hau Chak

  
	
   

  	
  Title:
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FULL
  MOON RESOURCES LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leung Pak To

  
	
   

  	
  Name:
  (Francis) Leung Pak To

  
	
   

  	
  Title:
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAUCHAMP
  INTERNATIONAL LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yip Shiu Kwong

  
	
   

  	
  Name:  (James) Yip Shiu Kwong

  
	
   

  	
  Title:
  Director

  

 

 

	
   

  	
  UNION
  ADVANCE GROUP LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Zhang Jianguo

  
	
   

  	
  Name:  Zhang
  Jianguo

  
	
   

  	
  Title:    Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GREAT
  STRATEGIES GROUP LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lu Xuebin

  
	
   

  	
  Name:  Lu
  Xuebin

  
	
   

  	
  Title:    Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALL
  UNITED CONSULTANTS GROUP

  LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Zhang Xiaowen

  
	
   

  	
  Name:  Zhang
  Xiaowen

  
	
   

  	
  Title:    Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPIRE
  PEOPLE LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tang Shengping

  
	
   

  	
  Name:  Tang
  Shengping

  
	
   

  	
  Title:    Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AS
  TO SECTIONS 5.13, 12 AND 13 ONLY:

  
	
   

  	
   

  
	
   

  	
  MONSTER
  WORLDWIDE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/
  Myron Olesnyckyj

  
	
   

  	
   

  	
  Name:

  	
  Myron
  Olesnckyj

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
  Address:

  	
  622 Third Avenue

  
	
   

  	
   

  	
   

  	
  New York, New York 10017

  
	
   

  	
   

  	
  Telephone: (212) 351-7000

  
	
   

  	
   

  	
  Facsimile: 
  (917) 256-8526

  
						

 

 

SCHEDULE A

 

Existing
Shareholders:

 

E-Career Holdings Ltd

Huntlaw Building

P.O. Box 2908

George Town

Grand Cayman

Cayman Islands

 

Good Connection Enterprises Limited

P.O. Box 957

Offshore Incorporations Centre

Road Town, Tortola

British Virgin Islands

 

Macintosh Associates Limited

P.O. Box 957

Offshore Incorporations Centre

Road Town, Tortola

British Virgin Islands

 

Surbiton Investments Limited

P.O. Box 71

Craigmuir Chambers

Road Town, Tortola

British Virgin Islands

 

Full Moon Resources Limited

P.O. Box 957

Offshore Incorporations Centre

Road Town, Tortola

British Virgin Islands

 

Beauchamp International Limited

P.O. Box 957

Offshore Incorporations Centre

Road Town, Tortola

British Virgin Islands

 

 

Union Advance
Group Limited

c/o China HR.com
Holdings Ltd.

4/F, CITIC
Buildings #2

19
Jianguomenwai Dajie

Chaoyang
District

Beijing, China

 

Great Strategies
Group Limited

c/o China HR.com
Holdings Ltd.

4/F, CITIC
Buildings #2

19
Jianguomenwai Dajie

Chaoyang
District

Beijing, China

 

All United
Consultants Limited

c/o China HR.com
Holdings Ltd.

4/F, CITIC
Buildings #2

19
Jianguomenwai Dajie

Chaoyang
District

Beijing, China

 

Empire
People Limited

c/o China HR.com
Holdings Ltd.

4/F, CITIC Buildings
#2

19
Jianguomenwai Dajie

Chaoyang
District

Beijing, China

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}]]