Document:

Exhibit 4.37

Exhibit 4.37

EXECUTION VERSION

SHARE PURCHASE AGREEMENT

BODHI INVESTMENTS LLC

- and -

GIGAMEDIA ASIA PACIFIC LIMITED

- and -

GIGAMEDIA LIMITED

APRIL 30, 2010

 

 

 

SHARE PURCHASE AGREEMENT

This Share Purchase Agreement (this “Agreement”) is entered into and made by and between the
following parties:

BODHI INVESTMENTS LLC, a limited liability company incorporated in the Republic of Mauritius
and having its registered office at International Financial Services Limited, IFS Court,
TwentyEight, Cybercity, Ebene, Mauritius (the “Selling Shareholder”);

GIGAMEDIA ASIA PACIFIC LIMITED, (IBC Number 1068168), a company incorporated in the British
Virgin Islands and having its registered office at Overseas Management Company Trust (B.V.I.) Ltd.,
OMC Chambers, P.O. Box 3152, Road Town, Tortola, British Virgin Islands (the “Purchaser”); and

GIGAMEDIA LIMITED, a company incorporated in Singapore and listed on NASDAQ Stock Market LLC
(with Company Registration Number 199905474H) and has its registered office at 8TH Floor, 207
Tiding Boulevard, Section 2, Taipei 114, Taiwan, R.O.C. (“GIGAMEDIA”).

WHEREAS,

(i) Infocomm Asia Holdings Pte. Ltd. (Company Registration Number 200414772H) (the “Company”)
is a private company limited by shares incorporated in Singapore with its registered office at 28
Maxwell Road Red Dot Traffic #04-01 Singapore 069120,

(ii) The Selling Shareholder owns a total of 208,881 Class B Shares,

(iii) The Selling Shareholder wishes to sell to the Purchaser and the Purchaser wishes to
purchase from the Selling Shareholder, a total of 208,881 Class B Shares (the “Purchase Shares”)
pursuant to Regulation S under the United States Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder (“Securities Act”), subject to the terms and conditions set
forth herein, and

(iv) GIGAMEDIA is the parent company of the Purchaser.

 

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NOW, THEREFORE, in consideration of the premises set forth above, the mutual covenants and
agreements set forth herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1 DEFINITIONS

“Articles” means the Memorandum and Articles of Association of the Company as may be further
amended from time to time.

“Class B Shares” means the Class B Shares of the Company, par value US$20.00 per share.

“Lien” shall mean with respect to any property or asset, any mortgage, lien, pledge, charge,
security interest, encumbrance or other adverse claim of any kind in respect of such share,
property or asset.

“Record Date” means in relation to any dividend, right, allotment or other distributions, the
date as at the close of business, on which shareholders of the Company must be registered in order
to participate in such dividend, right, allotment or other distributions.

“Shareholders’ Agreement” means the shareholders’ agreement dated of February 2, 2007 entered
into among, inter alia, the Purchaser, the Selling Shareholder and the Company to regulate the
affairs of the Company and the relationship of the shareholders of the Company.

“US$” shall mean the lawful currency of the United States of America.

SECTION 2 AGREEMENT TO PURCHASE AND SALE

2.1 Agreement to Purchase and Sale. Subject to the terms and conditions of this
Agreement, the Purchaser shall purchase the Purchase Shares from Selling Shareholder for an amount
as set out in Section 2.2 below. The issuance and delivery of the Purchase Shares shall convey good
title to the Purchase Shares, free and clear of any and all Liens and with all rights, attached or
accruing to them on and from the Closing;

 

2

 

2.2 Purchase Price. The total purchase price to be paid to the Selling
Shareholder for the Purchase Shares (“Purchase Price”) shall be US$2,668,430.

2.3 Payment of the Purchase Price.

(i) The Purchase Price shall be paid by the Purchaser at the Closing in 866,373 GIGAMEDIA
shares (“GigaMedia Exchange Shares”) as payment of the Purchase Payment under this Agreement
(“Purchase Payment”). The GigaMedia Exchange Shares shall be issued to the Selling Shareholder by
GIGAMEDIA in exchange for the Purchase Shares. The calculation price per such GIGAMEDIA share is
US$3.08 (“Calculation Price”). The issuance and delivery of the GigaMedia Exchange Shares shall
convey good title to the GigaMedia Exchange Shares, free and clear of any and all Liens and with
all rights, attached or accruing to them on and from the Closing.

(ii) The Selling Shareholder agrees that in the event that the GigaMedia Exchange Shares
cannot be issued within thirty (30) days of the date of this Agreement, the Purchase Price shall be
paid by the Purchaser at the Closing in cash via wire transfer of immediately available funds into
the bank account designated by the Selling Shareholder in cash upon receipt of Closing
Deliverables.

SECTION 3 CLOSING; DELIVERY

3.1 Closing. The transfer of the Purchase Shares (the “Closing”) shall take place at
the offices of the Company, 28 Maxwell Road Red Dot Traffic #04-01 Singapore 069120, on July 1,
2010 (the “Closing Date”), or at such other place and time as the parties hereto may mutually
agree. The Closing shall be no later than thirty (30) days from the execution date of this
Agreement. Upon the Closing, all the rights and benefits attached to and in relation to the
Purchase Shares (including but not limited to the dividends attributable to the Selling Shareholder
in respect of any and all Purchase Shares if any) shall be transferred from the Selling Shareholder
to the Purchaser.

3.2 Delivery at the Closing. (A) At the Closing, the Selling Shareholder shall deliver
the following items to the Purchaser:

(i) The total Purchase Shares, together with duly issued share certificate(s) of the
total Purchase Shares.

(ii) A compliance certificate, dated as of the Closing signed by duly authorized
representative of the Selling Shareholder certifying that all the

 

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representations and warranties set forth in Section 4 are true, correct and complete, and all
the conditions set forth in Section 6 have been fulfilled; and;

(iii) All such other documents as may be reasonably required by the Purchaser so as to
give effect to the provisions of this Agreement and the transactions hereby contemplated.

(B) At the Closing, the Purchaser shall deliver the following items to the Selling
Shareholder:

(i) The total GigaMedia Exchange Shares, together with duly issued share certificate(s)
of the total GigaMedia Exchange Shares.

(C) At the Closing, the Purchaser shall pay the Purchase Payment to the Selling Shareholder
against receipt of the deliverable under Section 3.2(A)(i), (ii) and (iii) hereof. On the date of
receipt of the Purchase Payment and the deliverable under Section 3.2(B)(i), the Selling
Shareholder shall issue a written receipt acknowledging such receipt to the Purchaser.

SECTION 4 REPRESENTATIONS AND WARRANTIES OF THE SELLING SHAREHOLDER

The Selling Shareholder hereby represents and warrants to the Purchaser that the statements in
this Section 4 are all true, correct and complete as of the date hereof, as of the Closing Date:

4.1 Valid Issuance of Purchase Shares. The Purchase Shares have been duly authorized
and validly issued and are fully paid and non-assessable, and free and clear of any and all
outstanding liens, security interests, adverse claims, charges or encumbrances (collectively
“Liens”). The Selling Shareholder is the true and lawful owner of the Purchase Shares with and the
full and valid title to any and all Purchase Shares.

4.2 Due Authorization. All corporate actions by the Selling Shareholder and, as
applicable, their respective officers, directors and shareholders necessary for the authorization,
execution and delivery of, and the performance of any and all obligations of the Selling
Shareholder under this Agreement and all other agreements, instruments and documents executed and
delivered in connection with the transactions contemplated hereby (the “Ancillary Agreements”), has
been taken or will be taken prior to the Closing. This Agreement and the Ancillary Agreements,
when executed and delivered by the Selling Shareholder, are valid and legally binding obligations
of

 

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the Selling Shareholder, subject, as to enforcement of remedies, to applicable bankruptcy,
insolvency, moratorium, reorganization and similar laws affecting creditors’ rights generally and
to general equitable principles.

4.3 No Conflicts. The execution and delivery of this Agreement and any and all
Ancillary Agreements by the Selling Shareholder and the performance of their respective obligations
hereunder and thereunder will not result in (i) any conflict with the memorandum and
articles of association of the Selling Shareholder, (ii) any breach or violation of,
conflict with or default under any law, statute, regulation, judgment, order, decree, license,
permit or other governmental authorization or any mortgage, lease, agreement, deed of trust,
indenture or any other agreements or instrument to which the Selling Shareholder is a party or by
which the Selling Shareholder or its respective properties or assets are bound, or (iii)
the creation or imposition of any Liens against the Company.

4.4 Disclosure. The Selling Shareholder has provided the Purchaser with all
information needed for the Purchaser to decide whether to purchase the Purchase Shares. There has
been no omission of any material facts or misrepresentation of any statement herein.

4.5 Governmental Consents. All consent, approval or authorization of, or registration
or filling with, any governmental agency or authority required for the execution and delivery by
the Selling Shareholder of this Agreement and the Ancillary Agreements have been obtained prior to
the Closing.

4.6 Securities Law Compliance. The Selling Shareholder represents and agrees that the
GigaMedia Exchange Shares have not been and will not be registered under the Securities Act and may
not be offered or sold within the United States or to, or for the account or benefit of, U.S.
persons except pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act.  Neither the Selling Shareholder, its affiliates, nor any
persons acting on its or their behalf, have engaged or will engage in any directed selling efforts
with respect to the GigaMedia Exchange Shares. Neither the Selling Shareholder, nor any of its
affiliates (as defined in Rule 501(b) of Regulation D under the Securities Act), nor any person
acting on its or their behalf has engaged or will engage in any form of general solicitation or
general advertising (within the meaning of Regulation D under the Securities Act) in connection
with any offer and sale of the GigaMedia Exchange Shares in the United States. The Selling
Shareholder is not in the United States and is not a U.S. person (within the meaning of Regulation
S under the Securities Act), is not an affiliate of the Company or a person acting on behalf of
such an affiliate and is purchasing such GigaMedia Exchange Shares, or the beneficial interest
therein, in a transaction made in accordance with Rule 903 or Rule 904 of Regulations S.

 

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SECTION 5 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER AND GIGAMEDIA

The Purchaser and GIGAMEDIA hereby represent and warrant to the Selling Shareholder that the
statements in this Section 5 are all true, correct and complete as of the date hereof and as of the
Closing Date:

5.1 Authorization. All corporate actions by the Purchaser and GIGAMEDIA and, as
applicable, their officers, directors and shareholders necessary for the authorization, execution
and delivery of, and the performance of any and all of its obligations under this Agreement and the
Ancillary Agreements has been taken or will be taken prior to the Closing. This Agreement and the
Ancillary Agreements, when executed and delivered by the Purchaser and GIGAMEDIA, constitute valid
and legally binding obligations of the Purchaser and GIGAMEDIA, subject, as to enforcement of
remedies, to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws
affecting creditors’ rights generally and to general equitable principles.

5.2 No Conflicts; Consents and Approvals, etc. The execution and delivery of this
Agreement by the Purchaser and GIGAMEDIA and the performance of its obligations hereunder will not
result in (i) any conflict with the certificate of incorporation, by-laws or other
constitutive documents of the Purchaser and GIGAMEDIA, or (ii) any breach or violation of,
conflict with or default under any applicable law, statute, regulation, judgment, order, decree,
license, permit or other governmental authorization.

5.3 Securities Law Compliance. Neither GIGAMEDIA or the Purchaser, nor any of their
affiliates (as defined in Rule 501(b) of Regulation D promulgated under the Securities Act
(“Regulation D”)), nor any person acting on its or their behalf (i) has made or will make offers or
sales of any security, or has solicited or will solicit offers to buy, or otherwise has negotiated
or will negotiate in respect of, any security, under circumstances that would require the
registration of the GigaMedia Exchange Shares under the Securities Act; or (ii) has engaged or will
engage in any form of general solicitation or general advertising (within the meaning of Regulation
D under the Securities Act) in connection with any offer or sale of GigaMedia Exchange Shares in
the United States. Neither GIGAMEDIA or the Purchaser, nor any of their affiliates (as defined in
Rule 405 under the Securities Act), nor any person acting on its or their behalf has engaged, or
will engage, in any “directed selling efforts” (as defined in Regulation S under the Securities
Act) with respect to the GigaMedia Exchange Shares. GIGAMEDIA is a “foreign issuer” (as defined in
Regulation S under the Securities Act) that reasonably believes that there is no “substantial U.S.
market interest” (as defined in Regulation S under the Securities Act) in the GigaMedia Exchange
Shares or any securities of the same class as the GigaMedia Exchange Shares.

 

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SECTION 6 CONDITIONS TO CLOSING BY PURCHASER

The obligations of the Purchaser to complete the Closing are subject to the fulfillment on or
prior to the Closing Date of the following conditions by the Selling Shareholder, any one or more
of which may be waived by the Purchaser in writing:

6.1 Representations and Warranties True and Correct. Any and all the representations
and warranties made by the Selling Shareholder in Section 4 hereof shall be true and correct and
complete when made, and shall be true and correct and complete as of the Closing Date.

6.2 Performance of Obligations. The Selling Shareholder 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 on or before the Closing.

6.3 Selling Shareholder’s Deliverables. The Selling Shareholder shall have delivered
to the Purchaser the deliverables specified in Section 3.2 prior to or on the Closing Date.

6.4 Provision of Information and Materials. The Selling Shareholder shall have
provided, in the timely manner, all necessary documents, information and statements to GIGAMEDIA
for issuance of the GIGAMEDIA shares to the Selling Shareholder.

6.5 Consents and Approvals. The Selling Shareholder shall have obtained all necessary
external and internal consents and approvals for the transfer of the Purchase Shares contemplated
by this Agreement, including but not limited to (i) the approval of its board of directors, and
(ii) all other relevant shareholders’, regulatory and governmental approvals, where necessary.

6.6 Waiver. The Selling Shareholder shall have obtained waivers from all other
shareholders of the Company of any pre-emption rights and tag along rights they may possess under
the Shareholders’ Agreement and the Articles of the Company in relation to the share transfer
contemplated by this Agreement.

6.7 Voting Rights. The Selling Shareholder hereby undertakes to the Purchaser, during
the period between the execution date of this Agreement and the Closing Date, to exercise or direct
the exercise of the voting and other rights attached to any and all Purchase Shares in the same
manner as the Purchaser exercises its equivalents rights in respect of its existing shareholding in
the Company, whether

 

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pursuant to a right of the shareholder of the Company under the Shareholders’ Agreement or
under the Articles. The Selling Shareholder shall procure that the director appointed by it on the
board of directors of the Company exercises his/her rights in the same manner as the director
appointee of the Purchaser on the board of the Company in respect of the exercise of the rights
described above.

SECTION 7 GREEN SHOE OPTION

7.1 Green Shoe Option. Subject to the terms and conditions of this Agreement,
GIGAMEDIA shall grant to the Selling Shareholder an option to subscribe for such number of
GIGAMEDIA shares as determined by the Selling Shareholder up to the number of 630,805 GIGAMEDIA
shares (the “Green Shoe Shares”) for an amount as set out in Section 7.3 below. The issuance and
delivery of the Green Shoe Shares shall convey good title to the Green Shoe Shares, free and clear
of any and all Liens and with all rights, attached or accruing to them on and from the Closing. If
an Enlarged Green Shoe Option (as defined below) has been exercised in accordance with Section 7.6,
the Green Shoe Option shall be deemed to have expired and may no longer be exercised.

7.2 Exercise Period. On the terms and subject to the conditions of this Agreement, the
Selling Shareholder may exercise the Green Shoe Option at any time during the period of forty five
(45) days commencing from the date of the Closing (the “Exercise Period”).

7.3 Green Shoe Consideration. Following the exercise of the Green Shoe Option,
GIGAMEDIA shall allot and issue the Green Shoe Shares, and the Selling Shareholder shall subscribe
and pay for the Green Shoe Consideration. The consideration for the Green Shoe Shares shall be
equal to the Calculation Price per GIGAMEDIA share multiplied by the number of Green Shoe Shares
(the “Green Shoe Consideration”).

7.4 Option Notice. The Green Shoe Option may be exercised by the Subscriber by serving
a notice in writing on the Company, stating (i) its intention to exercise the Green Shoe Option;
and (ii) the proposed date of completion of the issuance of the Green Shoe Shares, at any time
during the Exercise Period (the “Option Notice”). The Option Notice shall, once issued, be
irrevocable.

7.5 Issuance of Green Shoe Shares. Subject to the payment by the Selling Shareholder
of the Green Shoe Consideration in accordance with Clause 7.3, the Green Shoe Shares shall be
allotted and issued by the Company to the Selling Shareholder free from all claims, charges, liens
and other Encumbrances whatsoever, except that

 

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they will not rank for any dividend, right, allotment or other distributions, the Record Date
for which falls before the issue of such shares.

7.6 Enlarged Green Shoe Option. In the event the Purchase Price shall be paid by the
Purchaser at the Closing in cash in accordance with Section 2.3(ii), GIGAMEDIA shall grant to the
Selling Shareholder an option to subscribe for such number of shares as determined by the Selling
Shareholder up to a number equivalent to the GigaMedia Exchange Shares plus the Green Shoe Shares
(collectively as “Enlarged Green Shoe Shares”). The consideration for the Enlarged Green Shoe
Shares shall be equal to the Calculation Price per GIGAMEDIA share multiplied by the number of the
Enlarged Green Shoe Shares. On the terms and subject to the conditions of this Agreement, the
Selling Shareholder may exercise the Enlarged Green Shoe Option at any time during the period of
forty five (45) days commencing from the date of the Closing. Section 7.4 and Section 7.5 shall
apply to the Enlarged Green Shoe Shares.

SECTION 8 CONFIDENTIALITY

8.1 Confidential Information. For purpose of this Section 8, the term “Confidential
Information” shall mean the execution, delivery and performance of this Agreement and any and all
information delivered by a party hereto to any of the other party hereto in connection with the
transactions contemplated hereby.

8.2 Non-Disclosure.

(i) Without the prior written consent of the disclosing party, any party receiving the
Confidential Information (a) may not use or disclose to any person any Confidential Information;
and (b) shall make every effort to prevent the use or disclosure of Confidential Information. The
said provisions do not apply to (a) disclosure of Confidential Information to a director or
employee of the receiving party whose function requires him to have the Confidential Information,
(b) disclosure of Confidential Information to a professional adviser for the purpose of advising
the Purchaser, or the Selling Shareholder, (c) Confidential Information which has become public
knowledge other than, directly or indirectly, through the receiving party’s breach of this Section
8.2, or (d) disclosure of Confidential Information required by law or regulation or any competent
authorities, or NASDAQ listing contract, (and then if and to the extent practicable only after
consulting and taking into account the reasonable requirements of the Purchaser, or the Selling
Shareholder, where applicable); provided, however, that in the above situations (a) and (b) the
persons receiving the Confidential Information have undertaken the confidentiality obligations
herein.

 

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(ii) Without the prior written consents of the Purchaser and the Company, the Selling
Shareholder may not disclose to any third party any confidential information about the Company that
it has received.

(iii) Notwithstanding the foregoing, GIGAMEDIA shall be entitled to disclose the
Confidential Information as may be required in order to register GIGAMEDIA shares.

SECTION 9 MISCELLANEOUS

9.1 Binding Effect; Assignment. This Agreement shall be binding upon and shall be
enforceable by each party, its successors and permitted assigns. No party may assign any of its
rights or obligations hereunder without the prior written consent of the other parties.

9.2 Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the Hong Kong Special Administrative Region without giving effect to the conflict
of law rules thereof to the extent such rules would require or permit the application of the laws
of another jurisdiction.

9.3 Dispute Resolution. Any dispute relating to or arising from the performance of
this Agreement shall be settled through consultations among the Parties, and if the parties hereto
cannot reach an agreement regarding such disputes within thirty (30) days of their occurrence, such
disputes shall be submitted to the Hong Kong International Arbitration Center for arbitration in
accordance with the UNCITRAL Arbitration Rules then in force.

9.4 Costs and Expenses. The Purchaser shall pay the Selling Shareholder up to
US$15,000 incident to its negotiation and entry into this Agreement and any other related
agreements or instruments contemplated hereunder or thereunder and to its performance of and
compliance with all agreements and conditions contained herein or therein on its part to be
performed or complied with, including the fees, expenses and disbursements of any counsel and/or
accountants that it may have retained.

9.5 Notices. All notices, requests, demands, waivers and other communications
required or permitted to be given under this Agreement shall be in writing and delivered in person,
by courier or by facsimile (along with a copy by certified or registered mail) to the following
addresses:

	 	(a)	 	If to the Selling Shareholder, to:

 

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	 	 	BODHI INVESTMENTS LLC
	 
	 	 	 	 
	 

	 	Address:
	 	International Financial Services Limited, IFS Court, TwentyEight, Cybercity, Ebene, Mauritius
	 
	 	 	 	 
	 

	 	Facsimile:	 	 
	 

	 	Telephone:	 	 
	 

	 	Attention:	 	 

	 	(b)	 	If to the Purchaser, to:

	 	 	 	 	 
	 	 	GIGAMEDIA ASIA PACIFIC LIMITED
	 
	 	 	 	 
	 

	 	Address:
	 	The Centrium, 22/F, 60 Wyndham Street, Central, Hong Kong
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+852-3166-9831
	 

	 	Telephone:
	 	+852-3166-9800
	 

	 	Attention:
	 	General Counsel

	 	(c)	 	If to the Purchaser, to:

	 	 	 	 	 
	 	 	GIGAMEDIA LIMITED
	 
	 	 	 	 
	 

	 	Address:
	 	The Centrium, 22/F, 60 Wyndham Street, Central, Hong Kong
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+852-3166-9831
	 

	 	Telephone:
	 	+852-3166-9800
	 

	 	Attention:
	 	General Counsel

or, in each case, at such other address as may be specified in writing to the other parties in
accordance with the requirements of this Section 9.5. All such notices, requests, demands, waivers
and other communications shall be deemed to have been received (x) if by personal delivery
or courier, on the day delivered, or (y) if by facsimile, (A) if during business
hours on a Business Day, on the day on which such facsimile was sent, or (B) otherwise on
the Business Day immediately following the day on which such facsimile was sent, provided that a
copy is also sent by certified or registered mail.

9.6 Counterparts. This Agreement may be executed in counterparts and by different
parties hereto on separate copies or counterparts and which taken together shall constitute one and
the same instrument. The facsimile transmissions of any

 

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executed original document (including without limitation, any page of an original document on
which an original signature appears) and/or retransmission of any such facsimile transmission shall
be deemed to be the same as the delivery of an executed original. At the request of any party
hereto, the other parties hereto shall confirm facsimile transmissions by executing duplicate
original documents and delivering the same to the requesting party or parties.

[SIGNATURE PAGE FOLLOWS]

 

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(Signature Page)

IN WITNESS WHEREOF the parties hereto have caused their duly authorized representatives to execute
this Agreement as of the date first written above.

	 	 	 	 	 
	 	BODHI INVESTMENTS LLC

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GIGAMEDIA ASIA PACIFIC LIMITED

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GIGAMEDIA LIMITED

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:Exhibit 4.38

Exhibit 4.38

GIGAMEDIA ASIA PACIFIC LIMITED

MANAGEMENT CAPITAL INTERNATIONAL LTD

CHINA INTERACTIVE LIMITED

AS GUARANTORS AND INDEMNIFIERS

IN FAVOUR OF

BLIZZARD ENTERTAINMENT INTERNATIONAL

AS BENEFICIARY

 

DEED OF GUARANTEE, UNDERTAKING AND INDEMNITY

 

 

 

 

 

CONTENTS

	 	 	 	 	 
	CLAUSE	 	PAGE	 
	 
	 	 	 	 
	1. DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	2. GUARANTEE
	 	 	5	 
	 
	 	 	 	 
	3. HELLGATE INDEMNITY
	 	 	6	 
	 
	 	 	 	 
	4. NON-COMPETITION AND OTHER UNDERTAKINGS
	 	 	7	 
	 
	 	 	 	 
	5. PRESERVATION OF RIGHTS
	 	 	8	 
	 
	 	 	 	 
	6. REPRESENTATIONS AND WARRANTIES
	 	 	10	 
	 
	 	 	 	 
	7. PAYMENTS AND INTEREST
	 	 	10	 
	 
	 	 	 	 
	8. CURRENCY CONVERSION
	 	 	11	 
	 
	 	 	 	 
	9. CONTINUING SECURITY
	 	 	11	 
	 
	 	 	 	 
	10. SUSPENSE ACCOUNT
	 	 	11	 
	 
	 	 	 	 
	11. NOTICES
	 	 	11	 
	 
	 	 	 	 
	12. SPECIFIC PERFORMANCE
	 	 	13	 
	 
	 	 	 	 
	13. COSTS AND EXPENSES
	 	 	13	 
	 
	 	 	 	 
	14. ASSIGNMENTS AND SUCCESSORS
	 	 	13	 
	 
	 	 	 	 
	15. JOINT AND SEVERAL LIABILITIES
	 	 	13	 
	 
	 	 	 	 
	16. PARTIAL INVALIDITY
	 	 	13	 
	 
	 	 	 	 
	17. GOVERNING LAW AND DISPUTE RESOLUTION
	 	 	13	 
	 
	 	 	 	 
	18. ENTIRE GUARANTEE
	 	 	14	 
	 
	 	 	 	 
	Schedule 1 COMPETITORS OF BLIZZARD
	 	 	1	 

 

 

 

THIS DEED OF GUARANTEE, UNDERTAKING AND INDEMNITY (this “Deed”) is dated as of April 30, 2010 by:

Gigamedia Asia Pacific Limited, a limited liability company incorporated under the laws of the
British Virgin Islands (IBC number 1068168), with its registered office at Overseas Management
company Trust (B.V.I.) Ltd., OMC Chambers, P.O. box 3152, Road Town, Tortola, British Virgin
Islands (the “Gigamedia”)

Management Capital International Ltd, a limited liability company incorporated under the laws of
the British Virgin Islands (registered number UF39947Z), whose registered office is at Portcullis
Trustnet Chambers, P.O. Box 3444, Road Town, Tortola, British Virgin Islands (“MCIL”); and

China Interactive Limited, a limited liability company incorporated under the laws of the Marshall
Islands (registered number UF36488Z), whose registered office is at Trust Company Complex, Ajeltake
Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (“CIL”, and collectively with Gigamedia
and MCIL, the “Guarantors”)

in favour of

Blizzard Entertainment International, a division of Coöperatie Activision Blizzard International
U.A., a co-operative association, with its corporate seat in Amsterdam and office address at
Beechavenue 131 D, 1119 RB Schiphol-Rijk, The Netherlands, registered with the Trade Register under
number 34324431 (“Blizzard”).

WHEREAS:

	(A)	 	The Guarantors are shareholders of the Company, which in turn owns 100% of the shares in
Monsoon.

	(B)	 	Blizzard has agreed to license certain game products to Monsoon in accordance with the terms
of the Legacy Distribution Agreement and the SCII Licence and Distribution Agreement and
related transaction documents, including the Guaranteed Agreements.

	(C)	 	Each of the Guarantors has agreed to provide certain guarantees and to give certain
indemnities, undertakings and covenants in favour of Blizzard as set out in this Deed.

	1.	 	DEFINITIONS

	1.1	 	In this Deed:

“Applicable Laws” means, as to any person, any law, statute, rule, regulation, notice,
order, policy, or determination of an arbitrator or a court or other government authority or
stock exchange, in each case applicable or binding upon such person or any of its properties
or to which such person or any of its properties is subject or pertaining to any or all of
the transactions contemplated or referred to herein;

“Business Day” means a day (other than a Saturday or Sunday or public holiday) when banks
are open for general business in the United States of America or Singapore;

 

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“Blizzard Services Agreement” means the Service Agreement to be entered into
between an affiliate of Blizzard and Monsoon on or about the date of this Deed, pursuant to
which such affiliate of Blizzard will provide certain back-end services to Monsoon relating
to Battle.net Services;

“Company” means Infocomm Asia Holdings Pte. Ltd., a private limited liability company
incorporated under the laws of Singapore (registered number 200414722H), with its registered
office at 28 Maxwell Road Red Dot Traffic #04-01 Singapore 069120;

“Competing Business” means any business competing with the Monsoon Business through,
including without limitation, licensing or operating (a) any real time strategy game
software and/or (b) any online system that facilitates the match-making of game players, in
each case without the prior written approval of Blizzard (except for FIFA Online 2 and
Counter Strike Online which the Company is licensing and/or operating at the date of this
Deed);

“Control” means:

	 	(a)	 	the power (whether directly or indirectly and whether by the ownership of
share capital, the possession of voting power, contract or otherwise) to appoint
and/or remove all or such of the members of the board or other governing body of a
person as are able to cast a majority of the votes capable of being cast by the
members of that board or body on all, or substantially all, matters, or otherwise to
control or have the power to control the policies and affairs of that person; and/or

	 	(b)	 	the holding and/or possession of the beneficial interest in and/or the
ability to exercise the voting rights applicable to shares or other securities in any
person (whether directly or by means of holding such interests in one or more other
persons) which confer in aggregate on the holders hereof more than fifty per cent
(50%) of the total voting rights exercisable at general meetings of that person,

and to “Control” or to be “Controlled” shall be construed accordingly;

“Dispute” has the meaning given to it in clause 17.2;

“Guaranteed Agreements” means the Licence Agreements and the Blizzard Services Agreement and
“Guaranteed Agreement” means any one of them;

“Hellgate Indemnity” means the indemnity in respect of the Hellgate LDAs as described in
Clause 3;

“Hellgate LDAs” means the licensing and distribution agreements (i) dated 1 June 2006
between, amongst others, HanbitSoft, Inc. and the Company and (ii) dated 13 December 2006
between, amongst others, HanbitSoft, Inc. and DragonGate Enterprises Ltd, both relating to
the game known as “Hellgate: London”;

“Legacy Distribution Agreement” means the Distributor Agreement entered into by and among
Blizzard, Monsoon and the Company on January 12, 2010;

 

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“Licence Agreements” means both the Legacy Distribution Agreement and the SCII Licence and
Distribution Agreement; and “Licence Agreement” means any one of them as the context
requires;

“Licence Term” means the period from the date hereof until the date on which both of the
Licence Agreements have been terminated or have expired, provided that if Blizzard or any of
its Affiliates enters into any other licence agreements with Monsoon or the Company or any
of their Affiliates, then the Licence Term shall be deemed to be extended to the extent of
any such extension or new licence agreement term;

“Loss” means all losses, damages, liabilities, deficiencies, costs, expenses, penalties,
fines, obligations and liabilities of any kind and expenditures, including, without
limitation, reasonable attorney’s fees and court and investigation costs, but in the case of
clauses 2.1.1(c), 2.1.2(c) and 2.1.3(c) only, excluding consequential damages;

“Monsoon” means Monsoon Online Pte. Ltd., a Singapore corporation with its principal place
of business at 28 Maxwell Road #04-01, Red Dot Traffic, Singapore 069120;

“Monsoon Business” means the business carried on by Monsoon from time to time, including
pursuant to the terms of the Licence Agreements to distribute videogame software and operate
online videogames and related services;

“Proceedings” has the meaning given to it in clause 17.4;

“Process Agent” has the meaning given to it in clause 17.4;

“Related Party” means, in relation to a person, any of its shareholders, directors, senior
officers or associated companies or any person directly or indirectly Controlling or
Controlled by or under direct or indirect common Control with the first-mentioned person,
any of its shareholders (including the Subsidiaries and the associated companies thereof),
directors, senior officers or associated companies;

“SCII Licence and Distribution Agreement” means the License and Distribution Agreement to be
entered into by and among Blizzard, Monsoon and the Company at or about the date of this
Deed;

“Subsidiary” means in relation to any company, corporation or entity, a company, corporation
or entity:

	 	(a)	 	which is Controlled, directly or indirectly, by the first mentioned company,
corporation or entity;

	 	(b)	 	more than half the issued share capital, registered capital or equity
interest of which is beneficially owned, directly or indirectly, by the first
mentioned company, corporation or entity; or

	 	(c)	 	which is a Subsidiary of another Subsidiary of the first mentioned company,
corporation or entity;

“Territory” means Singapore, Malaysia, Thailand, Indonesia and the Philippines;

 

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“Warrant Instrument” means the warrant instrument dated on or about the date hereof in
respect of the Company; and

“Warrants” means the warrants to be issued to Blizzard pursuant to the terms of the Warrant
Instrument.

	1.2	 	The headings in this Deed do not affect its interpretation.

	1.3	 	In this Deed, a reference to:

	 	1.3.1	 	a clause, paragraph or schedule, unless specifically provided otherwise, is a
reference to a clause or paragraph of, or schedule to, this Deed;

	 	1.3.2	 	a “person” includes a reference to a corporation, body corporate, association
or partnership, individual, and to that person’s legal personal representatives,
successors and assigns;

	 	1.3.3	 	any statutory provision or statute includes all modifications thereto and all
re enactments (with or without modification) thereof and all subordinate legislation
made thereunder, in each case for the time being in force, except where the context
requires otherwise;

	 	1.3.4	 	the singular includes the plural and vice versa (unless the context requires
otherwise);

	 	1.3.5	 	a company is an “associated company” of another company for the purpose of
this Deed if:

	 	(a)	 	one of them has power to vote or otherwise controls no less
than 20 per cent of the voting shares of the other company; or

	 	(b)	 	one of them holds, owns or otherwise controls no less than 20
per cent of the issued share capital or registered capital of the other
company; or

	 	(c)	 	both are associated companies (as defined in Clause 1.3.5(a)
or 1.3.5(b)) of the same company.

	 	1.3.6	 	words incorporating one gender shall include each gender; and

	 	1.3.7	 	a reference to a written agreement includes a reference to such agreement as
may be amended or supplemented from time to time in accordance with its terms.

	1.4	 	The Schedules form part of this Deed and shall have the same force and effect as if set out
in the body of this Deed and references to this Deed include the Schedules.

	1.5	 	Unless otherwise expressly provided to the contrary in this Deed, a person who is not a party
to this Deed has no right under the Contracts (Rights of Third Parties) Act, Chapter 53B of
Singapore to enforce or to enjoy the benefit of any term of this Deed.

 

 - 4 - 

 

	1.6	 	Unless otherwise defined herein, all capitalized terms shall have the meaning provided for
such term in the Licence Agreements.

	2.	 	GUARANTEE

	2.1	 	In consideration of Blizzard entering into the Guaranteed Agreements, each of the Guarantors
irrevocably and unconditionally:

2.1.1 in the case of the Legacy Distribution Agreement:

	 	(a)	 	guarantees to Blizzard the due and punctual observance by
each of Monsoon and the Company of all of its respective financial obligations
under or pursuant to the Legacy Distribution Agreement, including but not
limited to payment of the Royalties, License Fee and the Legacy Minimum
Guarantee for Contract Year 1 under the Legacy Distribution Agreement and
establishment of the Letter of Credit (the “Legacy Guaranteed Obligations”),
and agrees to pay to Blizzard from time to time on demand by Blizzard under
this Deed all sums of money which either Monsoon and/or the Company is at any
time liable to pay to Blizzard under or pursuant to the Legacy Distribution
Agreement which have become due and payable but have not been paid at the time
such demand is made;

	 	(b)	 	undertakes (to the extent practicable) to duly and punctually
perform or procure the due and punctual performance of the Legacy Guaranteed
Obligations by Monsoon and the Company; and

	 	(c)	 	agrees as a primary obligation to indemnify Blizzard from
time to time on demand by Blizzard from and against any Loss incurred or
suffered by Blizzard as a result of, arising from or in connection with the
failure of either Monsoon and/or the Company to duly and punctually observe
their respective Legacy Guaranteed Obligations.

	 	2.1.2	 	in the case of the SCII Licence and Distribution Agreement:

	 	(a)	 	guarantees to Blizzard the due and punctual observance by
each of Monsoon and the Company of all of its respective financial obligations
and undertakings under or pursuant to the SCII Licence and Distribution
Agreement, including but not limited to payment of the Royalties, License Fee
and the SC II Minimum Guarantee for Contract Year 1 under the SCII Licence and
Distribution Agreement and establishment of the SCII Letter of Credit (the
“SCII Guaranteed Obligations”), and agrees to pay to Blizzard from time to
time on demand by Blizzard under this Deed all sums of money which either
Monsoon and/or the Company is at any time liable to pay to Blizzard under or
pursuant to the SCII Licence and Distribution Agreement which have become due
and payable but have not been paid at the time such demand is made;

 

 - 5 - 

 

	 	(b)	 	undertakes (to the extent practicable) to duly and punctually
perform or procure the due and punctual performance of the SCII Guaranteed
Obligations by Monsoon and the Company; and

	 	(c)	 	agrees as a primary obligation to indemnify Blizzard from
time to time on demand by Blizzard from and against any Loss incurred or
suffered by Blizzard as a result of, arising from or in connection with of the
failure of either Monsoon and/or the Company to duly and punctually observe
their respective SCII Guaranteed Obligations.

	 	2.1.3	 	in the case of the Blizzard Services Agreement:

	 	(a)	 	guarantees to Blizzard the due and punctual observance by
each of Monsoon and the Company of all of its respective financial obligations
and undertakings under or pursuant to the Blizzard Services Agreement,
including but not limited to payment of the Consulting Fee, the Battle.net
Related Consulting Fee MG, the Localization Related Consulting Fee Advance,
the Community Management Related Consulting Fee Advance and establishment of
the Letter of Credit (in each case as such terms are defined in the Blizzard
Services Agreement) (the “Blizzard Services Guaranteed Obligations”), and
agrees to pay to Blizzard from time to time on demand by Blizzard under this
Deed all sums of money which either Monsoon and/or the Company is at any time
liable to pay to Blizzard under or pursuant to the Blizzard Services Agreement
which have become due and payable but have not been paid at the time such
demand is made;

	 	(b)	 	undertakes (to the extent practicable) to duly and punctually
perform or procure the due and punctual performance of the Blizzard Services
Guaranteed Obligations by Monsoon and the Company; and

	 	(c)	 	agrees as a primary obligation to indemnify Blizzard from
time to time on demand by Blizzard from and against any Loss incurred or
suffered by Blizzard as a result of, arising from or in connection with of the
failure of either Monsoon and/or the Company to duly and punctually observe
their respective Blizzard Services Guaranteed Obligations.

	3.	 	HELLGATE INDEMNITY

	3.1	 	Subject to Clause 3.2, each of the Guarantors shall indemnify Blizzard, and at all times keep
Blizzard indemnified, (and at the direction of Blizzard pay such indemnity to the Company (or
any other person designated by Blizzard)) immediately on demand by Blizzard, from and against:

	 	3.1.1	 	any Loss incurred or suffered by the Company and/or Blizzard as a result of,
arising from or in connection with a claim by HanbitSoft, Inc., Flagship Studios, Inc.
and/or the receiver or liquidator of Flagship Studios, Inc. (or any other person having
similar rights, powers or authority) in relation to the Hellgate LDAs; and

 

 - 6 - 

 

	 	3.1.2	 	without prejudice to the generality of the foregoing, any Loss incurred or
suffered by the Company and/or Blizzard as a result of defending or settling such claim
or commencing a counterclaim in respect of such claim.

	3.2	 	The obligation set out in Clause 3.1 shall terminate upon presentation of a letter agreement,
satisfactory to Blizzard, signed by HanbitSoft, Inc., Flagship Studios, Inc. and/or the
receiver or liquidator of Flagship Studios, Inc. (or any other person having similar rights,
powers or authority in relation to Flagship Studios, Inc.) in relation to the Hellgate LDAs,
and acknowledging and undertaking that there are no due and payable financial obligations or
liabilities of the Company or its affiliates under the Hellgate LDAs, and that any financial
obligations or liabilities of the Company or its affiliates shall only become due and payable
upon the commercial release of a new game developed by HanbitSoft Inc. in accordance with a
new licence and distribution agreement to be entered into by HanbitSoft Inc. and the Company
or its affiliate (if any).

	4.	 	NON-COMPETITION AND OTHER UNDERTAKINGS

	4.1	 	Non-competition undertaking

	 	4.1.1	 	Each of the Guarantors shall not, and each of the Guarantors shall procure
that none of its Subsidiaries or Related Parties shall:

	 	(a)	 	at any time during the Licence Term, carry on or be engaged
or interested in or assist any person in carrying on any Competing Business
(and in the case of Gigamedia only, such obligations shall be limited to the
geographical scope of the Territory);

	 	(b)	 	at any time during the Licence Term (and in the case that
Blizzard exercises its buy-out right pursuant to the Management Agreement in
respect of the shares in Monsoon, for a period of one (1) year after the end
of the Licence Term), without the prior written consent of Blizzard, either
solely or jointly with or on behalf of any person, directly or indirectly,
employ or engage (or solicit or contact with a view to the engagement or
employment in a Competing Business) any person who is, or was at any time
during the preceding twelve (12) months, employed or engaged by Monsoon or
Monsoon’s Subsidiaries, or is or was temporarily transferred from the Company
or its Subsidiaries to Monsoon or Monsoon’s Subsidiaries and working
substantially full-time on the Monsoon Business at any time during the
preceding twelve (12) months.

	 	4.1.2	 	Each undertaking contained in Clause 4.1 shall be read and construed
independently of the other covenants therein contained so that if one or more should be
held to be invalid as an unreasonable restraint of trade or for any other reason
whatsoever, then the remaining covenants shall be valid to the extent that they are not
held to be so invalid.

	 	4.1.3	 	While the covenants in Clause 4.1 are considered by the Guarantors and
Blizzard to be reasonable in all the circumstances, if one or more should be held to be
invalid as an unreasonable restraint of trade or for any other reason
whatsoever, but would have been valid if part of the wording thereof had been
deleted or the period thereof reduced or the range of activities or area dealt with
thereby reduced in scope, the said covenants shall apply with such modifications as
may be necessary to make them valid and effective.

 

 - 7 - 

 

	4.2	 	Undertaking in relation to sale of shares in the Company

During the term of this Deed, the Guarantors shall not, and the Guarantors shall procure
that each of its Subsidiaries and their Related Parties shall not, directly or indirectly,
sell any shares in the Company to any direct competitors of Blizzard, including without
limitation those listed in Schedule 1.

	4.3	 	Undertaking in relation to the Warrant Instrument

During the term of this Deed, each of the Guarantors undertakes (i) to perform all acts and
do all things necessary to facilitate the issue of the Warrants to Blizzard and the issuance
of ordinary shares in the Company upon future exercise of such Warrants and (ii) to use its
rights and powers to procure that the Company complies with the provisions of clause 7.1 of
the Warrant Instrument.

	5.	 	PRESERVATION OF RIGHTS

	5.1	 	The obligations of the Guarantors contained in this Deed shall be in addition to and
independent of every other security which Blizzard may at any time hold in respect of any of
the Company or Monsoon’s obligations under the Guaranteed Agreements.

	5.2	 	Neither the obligations of the Guarantors contained in this Deed (whether in relation to the
Guaranteed Agreements or the Hellgate Indemnity) nor the rights, powers and remedies conferred
in respect of the Guarantors upon Blizzard by this Deed or by law shall be satisfied,
prejudiced, discharged, released, impaired, affected, lessened, diminished or otherwise
affected by:

	 	5.2.1	 	the winding-up, dissolution, administration or reorganisation of the Company,
Monsoon or any other person or any change in their respective statuses, functions,
control or ownership;

	 	5.2.2	 	any time or other indulgence being granted or agreed to be granted to the
Company, Monsoon or any other person in respect of any of their respective obligations
under the Guaranteed Agreements (as the case may be) or under any other security;

	 	5.2.3	 	any amendment, novation, supplement, extension, restatement or replacement of
the Guaranteed Agreements or any other document or security including without
limitation any amendment to, or any variation, of, any obligation of the Company,
Monsoon or any other person under the Guaranteed Agreements or under any other
security;

	 	5.2.4	 	any failure to take, or to fully take, any security contemplated by the
Guaranteed Agreements or otherwise agreed to be taken in respect of the
Company or Monsoon’s respective financial obligations under the Guaranteed
Agreements;

 

 - 8 - 

 

	 	5.2.5	 	any failure to realise, or to fully realise, the value of, or any release,
discharge, exchange or substitution of, any security taken in respect of the Company or
Monsoon’s respective financial obligations under the Guaranteed Agreements; or

	 	5.2.6	 	any other act, event or omission which, but for this Clause 5.2, might
operate to discharge, impair or otherwise affect any of the obligations of the
Guarantors contained in this Deed or any of the rights, powers or remedies conferred
upon Blizzard by the Guaranteed Agreements, this Deed or by law.

	5.3	 	Any settlement or discharge given by Blizzard to the Guarantors in respect of the Guarantors’
obligations under this Deed or any other agreement reached between Blizzard and the Guarantors
in relation to it shall be, and be deemed always to have been, void if any act on the faith of
which Blizzard gave the Guarantors that settlement or discharge or entered into that agreement
is subsequently avoided by or in pursuance of any provision of law.

	5.4	 	In the event the Company or Monsoon fails to pay any amount due and payable to Blizzard in
connection with their respective financial obligations under the Guaranteed Agreements or the
Hellgate LDAs, Blizzard shall not be obliged before exercising any of the rights, powers or
remedies conferred upon it in respect of the Guarantors by this Deed or by law:

	 	5.4.1	 	to proceed against or enforce any other rights or security or claim payment
from any person;

	 	5.4.2	 	to take any action or obtain judgment in any court against the Company or
Monsoon;

	 	5.4.3	 	to make or file any claim or proof in a winding-up or dissolution of the
Company or Monsoon; or

	 	5.4.4	 	to enforce or seek to enforce any security taken in respect of any of the
financial obligations of the Company or Monsoon under the Guaranteed Agreements or the
Hellgate LDAs (as the case may be).

	5.5	 	Each of the Guarantors agrees that, so long as the Company or Monsoon is under any actual or
contingent obligations under the Guaranteed Agreements or the Hellgate LDAs (as the case may
be) or Blizzard has not received payment in full of any financial obligation of the Company or
Monsoon under the Guaranteed Agreements or in connection with the Hellgate Indemnity, no
Guarantor shall exercise any rights which the Guarantor may at any time have by reason of
performance by it of its obligations under this Deed:

	 	5.5.1	 	to be indemnified by the Company or Monsoon or to receive any collateral from
the Company or Monsoon; and/or

 

 - 9 - 

 

	 	5.5.2	 	to claim any contribution from the Company or Monsoon as guarantor of the
Company or Monsoon’s financial obligations under the Guaranteed Agreements or the
Hellgate LDAs; and/or

	 	5.5.3	 	to take the benefit (in whole or in part and whether by way of subrogation or
otherwise) of any rights of Blizzard under the Guaranteed Agreements or the Hellgate
LDAs or of any other security taken pursuant to, or in connection with, the Guaranteed
Agreements or the Hellgate LDAs by Blizzard.

	5.6	 	The Guarantors’ liabilities contained in this Deed are not affected by the avoidance of an
assurance, security or payment or a release, settlement or discharge which is given or made on
the faith of an assurance, security or payment, in either case, under an enactment relating to
bankruptcy or insolvency.

	5.7	 	Each of the Guarantors agrees that that any award rendered against the Company or Monsoon
resulting from an arbitration or any another dispute resolution procedure under the Guaranteed
Agreements or the Hellgate LDAs (as the case may be) shall be conclusive and binding on the
Guarantors for the purposes of determining the Guarantors’ obligations under this Deed to the
same extent that such award is binding on the Company or Monsoon (as the case may be).

	 
	6.	 	REPRESENTATIONS AND WARRANTIES

Each of the Guarantors represents and warrants to Blizzard that:

	 	6.1.1	 	it is a company duly incorporated and validly existing under the laws of the
jurisdiction of its incorporation and has and will have the necessary power to enable
it to enter into and perform its obligations under this Deed;

	 	6.1.2	 	this Deed constitutes its legal, valid and binding obligations, enforceable
against it in accordance with its terms;

	 	6.1.3	 	all necessary authorisations to enable it to enter into this Deed have been
obtained and are and will remain in full force and effect;

	 	6.1.4	 	no security interest exists over all or any of its present or future revenues
or assets; and

	 	6.1.5	 	the execution, delivery and performance of this Deed will not conflict with
(a) any agreement binding on it or any of its assets; (b) its constitutive documents;
or (c) any applicable law.

	7.	 	PAYMENTS AND INTEREST

	7.1	 	The provisions of each Guaranteed Agreement relating to the payments to be made under it
(including, without limitation, those regulating what is to happen if either the Company
and/or Monsoon is required by law to make a deduction or withholding from any such payment)
shall apply mutatis mutandis to payments to be made under this Deed.

 

 - 10 - 

 

	7.2	 	If Blizzard makes a demand under this Deed, the Guarantors shall pay interest
on each sum demanded (before and after any judgment and to the extent interest at a default rate
is not otherwise being paid on such sum(s)) from seven (7) days after the
date of demand until the date of payment calculated at a rate per annum equal to
the lesser of (i) five one hundredths of one per cent (0.05%) per day, not compounded,
or (ii) the maximum amount permitted by Applicable Laws.

	8.	 	CURRENCY CONVERSION

Blizzard may convert any money received or realised by it under or pursuant to this Deed
which is not in the currency in which the relevant sum is due and payable under the
Guaranteed Agreements or the Hellgate LDAs (as the case may be) from that currency into the
currency in which such sum is due at the then prevailing commercial rate of exchange for the
relevant conversion.

	9.	 	CONTINUING SECURITY

The obligations of the Guarantors contained in this Deed shall constitute and be continuing
obligations notwithstanding any settlement of account or other matter or thing whatsoever,
and shall not be considered satisfied by any intermediate payment or satisfaction of any of
the obligations of the Company or Monsoon under the Guaranteed Agreements and shall continue
in full force and effect until the satisfaction in full of all obligations of the Company
and Monsoon under the Guaranteed Agreements and total satisfaction of all the Company and
Monsoon’s actual and contingent financial obligations under the Guaranteed Agreements.

	10.	 	SUSPENSE ACCOUNT

All monies received, recovered or realised by Blizzard under or pursuant to this Deed
(including the proceeds of any conversion of currency) may in its discretion be credited to
and held in any suspense or impersonal account pending their application from time to time
in or towards the discharge of this Deed.

	11.	 	NOTICES

	11.1	 	Any notice or demand to be made by one person to another in respect of this Deed (a “Notice”)
shall be given:

	 	11.1.1	 	in writing; and

	 	11.1.2	 	shall be delivered personally or sent by courier by an internationally recognised
courier company (e.g. FedEx, DHL) or by fax, to the party due to receive the Notice at
its address set out in Clause 11.3 or to such other address, person, or fax number as
the party may specify by not less than seven (7) days’ written notice to the other
parties before the Notice was dispatched.

	11.2	 	In the absence of evidence of earlier receipt, a Notice shall be deemed to have been duly
given if:

	 	11.2.1	 	delivered personally, when left at the address referred to in Clause 11.1.2;

	 	11.2.2	 	sent by courier, two (2) Business Days after posting it;

 

 - 11 - 

 

	 	11.2.3	 	sent by fax, when confirmation of its transmission has been recorded on the sender’s
fax machine,

provided that any Notice to be served on Blizzard shall be effective only when actually
received by Blizzard, marked for the attention of the department or officer specified by
Blizzard for such purpose.

	11.3	 	The address referred to in Clause 11.1.2 is:

	 	11.3.1	 	in the case of the Guarantors:

	 	 	 	Gigamedia Asia Pacific Limited

The Centrium, 22/F, 60 Wyndham Street, Central, Hong Kong

Fax No: +852 3166 9831

For the attention of: Chief Executive Officer

	 
	 	 	 	Management Capital International Ltd

28 Maxwell Road #04-01, Red Dot Traffic

Singapore 069120Fax No: +65-6898-8881

For the attention of: Mr Richard Chua

	 
	 	 	 	China Interactive Limited

28 Maxwell Road #04-01, Red Dot Traffic

Singapore 069120

Fax No: +65-6898-8881

For the attention of: Mr Roland Ong

	 	11.3.2	 	in the case of Blizzard:

	 	 	 	Blizzard Entertainment International, a division of Coöperatie Activision

	 
	 	 	 	Blizzard International U.A.

Beechavenue 131 D

1119 RB Schiphol-Rijk

The Netherlands

Fax: +31 20 715 7701

Attention: Chief Executive Officer

	 
	 	 	 	With a copy to:

	 
	 	 	 	Blizzard Entertainment, Inc.

16215 Alton Parkway

Irvine, California 92618

Fax: +1 949 737 7666

Attention: Chief Operating Officer

 

 - 12 - 

 

	12.	 	SPECIFIC PERFORMANCE

If any of the Guarantors fails to comply with its undertakings in this Deed, Blizzard may
take proceedings to enforce specific performance of this Deed. Nothing in this Deed
shall preclude Blizzard from taking other steps or remedies to enforce its rights under this
Deed or otherwise, including claiming damages or other equitable remedies.

	13.	 	COSTS AND EXPENSES

All Blizzard’s costs and expenses (including legal fees, stamp duties and any value added
tax) incurred in connection with the enforcement of this Deed or otherwise in relation to it
shall be reimbursed by the Guarantors on demand on a full indemnity basis together with
interest from the date such costs and expenses were incurred to the date of payment at the
rate provided in Clause 7.2.

	14.	 	ASSIGNMENTS AND SUCCESSORS

Blizzard may at any time assign all or any of its rights and benefits under this Deed to its
Affiliates and this Deed shall remain in effect despite any amalgamation or merger (however
effected) relating to Blizzard. References to Blizzard shall be deemed to include any
assignee or successor in title of Blizzard and any person who, under the laws of its
jurisdiction of incorporation or domicile, has assumed the rights and obligations of
Blizzard under this Deed or to which under such laws the same have been transferred. No
other party may, without the prior written consent of Blizzard, transfer or assign any of
its rights and/or obligations hereunder.

	15.	 	JOINT AND SEVERAL LIABILITIES

The liabilities and obligations of the Guarantors under this Deed shall be joint and
several.

	16.	 	PARTIAL INVALIDITY

If at any time, any provision of this Deed is or becomes illegal, invalid or unenforceable
in any respect under the law of any jurisdiction, neither the legality, validity or
enforceability of the remaining provisions of this Deed nor of such provisions under the law
of any other jurisdiction shall in any way be affected or impaired thereby.

	17.	 	GOVERNING LAW AND DISPUTE RESOLUTION

	17.1	 	This Deed is governed by, and shall be construed in accordance with, the laws of Singapore.

	17.2	 	Any dispute, controversy or claim arising out of or in connection with this Deed (a
“Dispute”), including any question regarding its existence, validity, interpretation, breach
or termination, shall be referred to and finally resolved by arbitration in Singapore in
accordance with the Arbitration Rules of the Singapore International Arbitration Centre for
the time being in force, which rules are deemed to be incorporated by reference in this
clause. The seat of arbitration shall be Singapore. The language of the arbitration
proceedings shall be English. Any award of the Tribunal shall be final and binding on the
parties from the day it is made. The parties undertake to carry out the award without delay.

 

 - 13 - 

 

	17.3	 	The arbitral tribunal (“Tribunal”) shall consist of three (3) arbitrators. The Guarantors
shall jointly appoint one (1) arbitrator and Blizzard shall appoint one (1) arbitrator. The
third arbitrator is to be jointly appointed by the first two (2) arbitrators and will act as
the Chairman of the Tribunal. The Chairman shall not be a citizen of the United States of
America or Singapore. The seat of arbitration shall be Singapore. The language of the
arbitration proceedings shall be English. Any award of the Tribunal shall be final and
binding on the parties from the day it is made. The parties undertake to carry out the award
without delay.

	17.4	 	The Guarantors agree that the documents which start any proceedings relating to a Dispute
(the “Proceedings”) and any other documents required to be served in relation to those
Proceedings may be served (in the case of MCIL and CIL) on their legal advisers at the date of
this Deed and (in the case of Gigamedia) on Tricor Singapore Pte. Ltd. at 8 Cross Street,
#11-00 PWC Building, Singapore 048424 (Tel: +65 6236 3503; Fax: +65 6236 4399 ) for the
attention of Ms. Lotus Isabella Lim Mei Hua, on their behalf and irrevocably appoints the same
as their agents to accept service of Proceedings (the “Process Agent”). These documents may,
however, be served in any other manner allowed by law. This clause applies to all Proceedings
wherever started. If for any reason the Process Agent of a Guarantor ceases to be able to act
as such, the Guarantor shall immediately inform each other party of this, and undertake to
appoint a substitute Process Agent, and to deliver to each other party a copy of the
substitute Process Agent’s acceptance of that appointment, within thirty (30) days of the
original Process Agent ceasing to act as such.

	18.	 	ENTIRE GUARANTEE

This Deed is intended by the parties as a final expression of their agreement and intended
to be a complete and exclusive statement of the agreement and understanding of the parties
hereto in respect of the subject matter contained herein. This Deed supersedes all prior
agreements and understandings between the parties with respect to such subject matter.

[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 - 14 - 

 

IN WITNESS WHEREOF this Deed has been executed as a deed by the Guarantors and Blizzard and is
intended to be and is hereby delivered by it as a deed on the date specified above.

	 	 	 
	The Guarantor
	 	 
	 
	 	 
	under its common seal
	 	 
	The COMMON SEAL of

	 	 ) 
	GIGAMEDIA ASIA PACIFIC LIMITED

	 	 ) 
	was hereunto affixed in the presence of:

	 	 ) 

	 	 	 
	 

Director/Authorised Signatory

	 	 
	 
	 	 
	 

Director/Secretary/Authorised Signatory

	 	 

[SIGNATURE PAGE TO DEED OF GUARANTEE, UNDERTAKING AND INDEMNITY]

 

  

 

	 	 	 
	The Guarantor
	 	 
	 
	 	 
	under its common seal
	 	 
	The COMMON SEAL of

	 	 ) 
	MANAGEMENT CAPITAL INTERNATIONAL LTD

	 	 ) 
	was hereunto affixed in the presence of:

	 	 ) 

	 	 	 
	 

	 	 
	Director/Authorised Signatory
	 	 
	 
	 	 
	 

	 	 
	Director/Secretary/Authorised Signatory
	 	 

[SIGNATURE PAGE TO DEED OF GUARANTEE, UNDERTAKING AND INDEMNITY]

 

  

 

	 	 	 
	The Guarantor
	 	 
	 
	 	 
	under its common seal
	 	 
	The COMMON SEAL of

	 	 ) 
	CHINA INTERACTIVE LIMITED

	 	 ) 
	was hereunto affixed in the presence of:

	 	 ) 

	 	 	 
	 

Director/Authorised Signatory

	 	 
	 
	 	 
	 

Director/Secretary/Authorised Signatory

	 	 

[SIGNATURE PAGE TO DEED OF GUARANTEE, UNDERTAKING AND INDEMNITY]

 

  

 

	 	 	 	 	 
	SIGNED, SEALED and DELIVERED

	 	 ) 	 	 
	as a DEED by:

	 	 ) 
	 	L.S.
	for and on behalf of:

	 	 ) 	 	 
	BLIZZARD ENTERTAINMENT INTERNATIONAL

	 	 ) 	 	 
	a division of Coöperatie Activision

	 	 ) 	 	 
	Blizzard International U.A.

	 	 ) 	 	 
	in the presence of:

	 	Name:	 	 
	 

	 	Title:	 	 

Witness:

Name of witness:

Address of witness:

Occupation of witness:

[SIGNATURE PAGE TO DEED OF GUARANTEE, UNDERTAKING AND INDEMNITY]

 

  

 

SCHEDULE 1

COMPETITORS OF BLIZZARD

1. Atari

2. Anipark

3. Bandai Games

4. Bungie

5. Capcom

6. Codemasters

7. CCR

8. CJ Internet

9. Dragon Fly Games

10. Disney and Disney Interactive

11. Electronic Arts

12. East Soft

13. Flagship Studio

14. Gamehi

15. Gravity

16. Hanbit Soft

17. Konami

18. JC Entertainment

19. Lucas Arts

20. Mgame

21. Microsoft

22. Namco

23. Nintendo

24. Midway

25. NC Soft

26. Ndoors

27. Neople

28. Neowiz Games

29. Nexon

30. NHN

31. NHN Games

32. Ntreeve Soft

33. Sony and Sony Online

34. Sega

35. SCi Games

36. Square Enix Online

37. T3 Entertainment

38. Take 2

39. The9 Ltd

40. THQ

41. Ubisoft

42. Valve

43. Viacom (MTV Games)

44. Webzen

45. Wemade Entertainment

46. Yedang Online

47. YNK Korea

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]