Hurray!HoldingCo.,Ltd.andNihon-EnterpriseMobile,Ltd.----------AgreementonTransferofSharesofBeijingEnterpriseMobileTechnologyCo.,Ltd.----------April13,2004<PAGE>--------------------------------------------------------------------------------ThisAgreementisexecutedonApril13,2004inBeijingbythefollowingparties:PartyA:Hurray!HoldingCo.,Ltd.Registeredaddress:CricketSquare,HutchinsDrive,POBox2681GT,GeorgeTown,GrandCayman,CaymanIslands(hereinafterthe"Transferee")AndPartyB:Nihon-EnterpriseMobile,Ltd.Registeredaddress:1-17-8,Shibuya,Shibuya-ku,Tokyo,Japan(hereinafterthe"Transferor")WHEREAS:1.BeijingEnterpriseMobileTechnologyCo.,Ltd.(hereinafterthe"EnterpriseMobile")isaSino-foreignjointventurelegallyestablishedandvalidlyexistingunderChineselaws.ItsregisteredcapitalisUS$410,000,ofwhichUS$369,000iscontributedbytheTransferor,makingitentitledto90percentequitiesoftheEnterpriseMobileTheTransferorislegallyentitledtoallshareholderrightsinlightofitscontributionasattheexecutiondateof
thisAgreement.2.TheTransfereeisalegalpersonlegallyestablishedandvalidlyexistingunderthelawsofCaymanIslands.ItdesirestoacceptallsharesofEnterpriseMobileheldbytheTransferor.Inconsiderationoftheforegoingsharetransfer,thepartiesherebyagreeasfollowsthroughfriendlyconsultationinaccordancewithrelevantlawsandregulationsandinthespiritofmutualbenefit,honestyandgoodfaith:I.ShareTransfer1.TheTransferoragreestotransferallofitssharesofEnterpriseMobiletotheTransfereeontheTransferEffectiveDate(asdefinedhereinafter)providedunderArticleIIIofthisAgreementaccordingtotermsandconditionsofthisAgreement.1<PAGE>--------------------------------------------------------------------------------TheTransfereeagreestoacceptsuchsharesaccordingtotermsandconditionsofthisAgreement(hereinafter"ShareTransfer").2.UnlessotherwiseprovidedunderthisAgreement,theTransfereeshallbecomethelegalownerofthesharescontemplatedtobetransferredunderthisAgreementandhaveallrightsandobligationsinrespectofShareTransfer(suchrightsincludingallrights,interestsanddutiesinrespectofitscontribution),andtheTransferorshallnothaveanyright,obligationorresponsibilityinrespectofShareTransfer,asoftheTransferEffectiveDateprovidedunderArticleIIIofthisAgreement.3.ThepartiesheretoagreetoeffectallproceduresinrespectofShareTransferaccordingtothetermsandtimeprovidedunderthisAgreement,includingwithoutlimitationsecuringapprovaldocumentsforShareTransfer/acceptanceaccordingtothelawsoftheirrespectiveincorporationplace.4.TheTransferorshalltransfertotheTransfereeanyandallmaterialsheldbytheTransferornecessaryforappropriateexerciseofshareholderrights
bytheTransfereeasoftheTransferEffectiveDateofthisAgreement,includingwithoutlimitationboardresolutionsandminutesofEnterpriseMobile,allsealsofEnterpriseMobile(includingwithoutlimitationcorporateseal,financesealandcontractseal),approvaldocumentsofEnterpriseMobile,approvaldocumentsofforeign-investedenterprise,businesslicense(originalsandcopies),certificates,checkbooks,materialsrelatingtobankaccountandchangesthereto,propertytitledocumentsandapprovals.II.ShareTransferPriceandPayment1.ThepartiesheretoagreethatthepriceofShareTransferisUSD4,050,000(USDollarFourMillionFiftyThousandonly)(hereinafter"ShareTransferPrice").2.ThepartiesheretoagreethattheTransfereeshallpaytotheTransferorbytelegraphictransferwithinfiveworkingdaysafterexecutionofthisAgreement25percentofShareTransferPrice,i.e.,US$1,012,500("FirstPayment"),and,within15daysofTransferEffectiveDate,theremaining75percentofShareTransferPrice,i.e.,US$3,037,500.IfShareTransferfailstobeeffectivewithin90daysafterexecutionofthisAgreementbyreasonsotherthanthoseonthepartoftheTransfereeaftertheTransfereeeffectedtheFirstPaymenttotheTransferor,theTransferorshallrefundto2<PAGE>--------------------------------------------------------------------------------theTransfereefullamountofFirstPaymentattheearlierof:(1)withinfiveworkingdaysaftertheTransferorisexpresslyinformedthatShareTransferfailstobeeffectiveasscheduled,or(2)90daysafterexecutionofthisAgreement.III.EffectiveDateofthisAgreementandofShareTransfer1.ThisAgreementshallbeeffectiveuponexecutionbythepartiesheretoortheirrespectiveauthorizedrepresentativesandaffixtureofseals.2.ShareTransfercontemplatedunderthisAgreementshallbeeffectiveuponrealizationofallconditionsprecedentsetoutbelow,andthedateofrealizationshallbeTransferEffectiveDate:
(1)thisAgreementislegallyexecutedbythepartiesheretoortheirrespectiveauthorizedrepresentatives;(2)thisAgreementandtheShareTransfercontemplatedhereunderareapprovedfortransfer/acceptancebytherespectiveauthoritiesoftheTransferorandTransferee;(3)thisAgreementandtheShareTransfercontemplatedhereunderareapprovedbytheboardofEnterpriseMobile;(4)thisAgreementandtheShareTransfercontemplatedhereunderareapprovedbytheoriginalapprovalauthorityandapprovaldocumentsaresecured;(5)othershareholdersofEnterpriseMobileissuewarrantyletterconsentingtotheShareTransferandwaivingtherightoffirstrefusalinrespectofthesharesintendedfortransfer;and(6)otherlegaldocumentsrequiredfortheShareTransferhavebeenappropriatelysecuredandrelatingproceduresorformalitieshavebeenvalidlyeffected.3.Thepartiesheretoshall,ingoodfaith,completeanyactivitiesnecessaryforeffectingtheShareTransferprovidedhereunderwithinthreemonthsafterthisAgreementiseffectiveoranytimeotherwiseagreeduponbybothparties,includingwithoutlimitationexecutingorcausingthirdpartytoexecuteanydocumentorapplication,orsecuringanyrelevantapproval,consentorpermittoeffect3<PAGE>--------------------------------------------------------------------------------performanceofthisAgreement.4.TheTransferoragreesthattheShareTransfershallnotbeeffectiveuntilallconditionsprecedentsetoutinSection2ofthisArticlearerealizedwithinagreed-upontime,andtheTransfereebearsnoliabilitythereforunlessthefailureofsuchrealizationiscausedbytheerroroftheTransferee.IfsuchconditionprecedentfailstoberealizedaccordingtothetermsorwithinthetimeprovidedhereunderduetotheerroroftheTransferor,theTransferor
shallbeliabletoanylossesorexpensesthusincurredbytheTransferee;ifsuchconditionprecedentfailstoberealizedaccordingtothetermsorwithinthetimeprovidedhereunderduetotheerroroftheTransferee,theTransfereeshallbeliabletoanylossesorexpensesthusincurredbytheTransferor.IV.Representations,CovenantsandWarrantiesoftheTransferor1.EnterpriseMobileisalimitedliabilitycompanylegallyestablishedandvalidlyexistingunderChineselaws.TheTransferorhasdulypaidupitssubscribedcapitalinlightofcapitalpercentageandsecuredcorrespondingsharerightsaccordingtolaws.TheTransferorhasperformedallofitsobligationsasshareholderinstrictcompliancewitharticlesofassociationofEnterpriseMobile2.TheTransferorhasallrights,powersandauthoritiestoenterintoandperformalldutiesandresponsibilitiesunderthisAgreement.ThisAgreementislegallybindingupontheTransferoruponexecution.3.TheTransferorlegallyandactuallyownsthesharesintendedtobetransferredunderthisAgreement,andiscapableinrightandactiontotransfersuchshares,andhassecuredallnecessaryapprovalstherefor.4.ExecutionorperformanceofthisAgreementbytheTransferordoesnotbreachlaws,articlesofassociation,contracts,agreementsoranyotherlegaldocumentswhichtheTransferorissubjectto.5.Thesharesintendedfortransferarecompleteandhavenotbeenpledged,subjecttoanypreferentialrightoranythirdpartyinterest,orhaveanyrightdefect.6.ThebalancesheetofEnterpriseMobileandotherfinancialmaterialsandinformationprovidedbytheTransferortotheTransfereearecomplete,trueandaccurate.Exceptfortheliabilities(includingactualliabilitiesandcontingentliabilities)4<PAGE>--------------------------------------------------------------------------------disclosedbytheTransferortotheTransferee,EnterpriseMobilehasnootherliabilities("UndisclosedLiabilities").IfanyUndisclosedLiabilitiesexist,
theTransferorshallbeliableforitsfullrepayment.IftheTransfereeorEnterpriseMobilesuffersanylossduetoUndisclosedLiabilities,theTransferorshallbeliabletoalldamagestherefrom.7.TheTransferoragreesnottoconductwithinChinaanybusinessthatdirectlyorindirectlycausescompetitionwiththeTransfereeanditsaffiliateswithinoneyearafterthisAgreementbecomeseffective.TheTransferordoesnotprecludecooperationwiththeTransfereeononeorseveralbusinessesduringsuchperiod,thedetailsofcooperationbeseparatelynegotiated.8.Thereexistsnobreachoflaw,proceedingsorpotentialproceedingsinrespectoftax,accounting,employment,insuranceandpropertyofEnterpriseMobile9.AsofeffectivedateofthisAgreementuntilTransferEffectiveDate(includingeffectivedateofthisAgreementandTransferEffectiveDate),unlesspriorwrittenconsentissecuredfromtheTransferee,theTransferorshallwarrant:(1)EnterpriseMobileshallkeepnormalbusinessoperation,andanyexpenditureintheamounthigherthanRMB10,000(includingRMB10,000)shallbenotifiedtotheTranfereetwoworkingdaysinadvanceandsubjecttotheapprovaloftheTransferee;(2)TheassetsandfinancialpositionofEnterpriseMobileshallnotundertakematerialchange(includingwithoutlimitationassignment,impositionofanypledgeoranythirdpartyinterest);(3)EnterpriseMobileshallnotdistributeinvestmentgainstoTransferororanyothershareholders;(4)Exceptforanypriorsharetransferagreed-uponbyrelatedparties,EnterpriseMobileshallnotchangeitssharestructureorarticlesofassociation;(5)AssetsofEnterpriseMobileshallnotundertakeanymaterialchangeinquantityandstructure(includingwithoutlimitationassignment,impositionofanypledgeoranythirdpartyinterest);(6)TheTransferorshalluseitsbestendeavorstoprotecttheoperationofEnterpriseMobilefromanyadverseimpact;and
(7)Nottoappoint,engage,orremoveanydirector,officer,orkey5<PAGE>--------------------------------------------------------------------------------employee.10.AnyrepresentationorwarrantymadebytheTransferorunderthisAgreementcontainsnomaterialfalsehoodoranyomissions.11.ThewarrantiesmadebytheTransferorunderthisArticlearevalidforoneyearfromtheTransferEffectiveDate.Aftersuchperiod,theTransferorbearsnoobligationtotheTransfereeinrespectofanywarranty,repaymentorcompensationprovidedunderthisArticle.12.TheTransferorrepresentsthatithasallinformationrelatingtothistransaction,includingthetransactionarrangementbetweentheTransfereeanditsaffiliateswithothershareholdersofEnterpriseMobileV.Representations,CovenantsandWarrantiesoftheTransferee1.TheTransfereeisthelegalpersonlegallyestablishedandvalidlyexistingunderthelawsofCaymanIslands.2.TheTransfereehasfullrightstoconductthemattersinrespectofacceptingsharesfromtheTransferorasprovidedunderthisAgreement,andhassecuredallapprovalsand/orauthorizationsinrespectofexecutionandperformanceofthisAgreement.3.ExecutionorperformanceofthisAgreementbytheTransfereeisinnobreachofthelaws,articlesofassociation,contracts,agreementsorotherlegaldocumentswhichtheTransfereeissubjectto.4.TheTransfereeshallperformtheobligationofpayingtransferpricetotheTransferorinstrictcompliancewithtermsofthisAgreement,andwarrantnottowithdrawcontributionaftersuchpaymentobligationisfulfilledandtheregistrationofthecompanyischanged.VI.Confidentiality
UnlessexpresslyrequiredbyrelevantChineselawsandregulations,relevantarticlesofassociation,orotherapplicablelawsandregulations,nopartyshalldisclosethetermsofthisAgreementtoanythirdpartyotherthanthepartiesheretowithoutthepriorwrittenconsentoftheotherpartybeforecompletionofthetransaction6<PAGE>--------------------------------------------------------------------------------contemplatedhereunder.Thisprovisiondoesnotapplytoaffiliatesofandprofessionalsengagedbythepartieshereto.VII.FeesandExpenses1.Thepartiesheretoagreetobeartheirrespectivefeesincurredforengagementoflawyers,accountants,appraisers,financialadvisorsandotherprofessionals.2.AnytaxableliabilityincurredundertheShareTransfershallbebornebytheTransferorandtheTransfereerespectivelyaccordingtolaws.3.AnyotherexpensesoccurredinconnectionwiththeShareTransfer(includingwithoutlimitationtheexpensesrelatingtochangeregistrationatindustrialandcommercialbureau)shallbeequallybornebytheTransferorandtheTransferee.VIII.OtherMattersrelatingandAmendmenttothisAgreement1.ThepartiesheretoagreetofurthernegotiateothermattersinrespectofthisAgreementafterexecutionofthisAgreementandenterintosupplementalagreementinwriting.SuchsupplementalagreementconstitutesanintegralpartofthisAgreement.2.AnyamendmenttothisAgreementshallbeinwritingandsignedbybothparties.AnyamendmentoradditionshallconstituteanintegralpartofthisAgreement.IX.BreachLiability1.AnypartyheretoshallbedeemedinbreachofthisAgreementifsuch
party:(1)failstoperformanyobligationunderthisAgreement;(2)breachesanyofitsrepresentation,covenantorwarrantymadeunderthisAgreement;or(3)itsrepresentationorwarrantymadeunderthisAgreementisinconsistentwithfactsormisleading(ingoodfaithorinbadfaith).2.Underoccurrenceofsuchbreach,thenon-breachingpartyhastherighttorequirethebreachingpartytocorrectwithin10days;ifthebreachingpartyfailsto7<PAGE>--------------------------------------------------------------------------------correctwithinthespecifiedtime,thenon-breachingpartyhastherighttoterminatethisAgreementandclaimdamagesfromthebreachingparty.3.Thepartiesheretocovenantstoeachotherthatwithoutprejudicetotherighttoclaimdamagesbythenon-breachingpartyagainstthebreachofcovenant,warrantyorobligationbythebreachingpartyunderthisAgreement,thebreachingpartyshallbeliabletothefollowingdamagesasrequiredbythenon-breachingparty:(1)AcertainsumofdamageswhichissufficienttorestorebothpartiestothestatusasiftheAgreementisnotbreached;(2)Expensesorcostsdirectlyorindirectlyincurredbythenon-breachingpartyarisingoutofthebreachoftheAgreement(includingwithoutlimitationlitigation,arbitrationand/orlawyerfeesreasonablyincurredbythenon-breachingpartytherefrom).X.DisputeResolution1.AnydisputearisingoutoforrelatingtothisAgreementshallbesettledbythepartiesheretothroughfriendlyconsultation.
2.Ifanydisputeisnotsettledthroughfriendlyconsultationbythepartiesheretowithinthirtydaysafteritsoccurrence,suchdisputeshallbesubmittedtotheChinaInternationalEconomicandTradeArbitrationCommissionforarbitrationaccordingtoitsrulesthenineffect.Theawardofarbitrationisfinalandbindinguponbothparties.TheseatofthearbitrationisinBeijing,China.3.IfanyprovisionofthisAgreementshallbedeterminedtobeinvalidaccordingtorelevantlaws,theremainingofthisAgreementshallcontinuetobevalidandenforceable.XI.ApplicableLawsTheexecution,validity,interpretationandperformanceofthisAgreement,anddisputeresolutionthereofshallbegovernedbyrelevantlawsofChina.XII.AgreementRight8<PAGE>--------------------------------------------------------------------------------NopartyshallassignitsrightsunderthisAgreementwithoutpriorwrittenconsentoftheotherparty.RespectivesuccessorsandpermittedassignsofthepartiesheretoaresubjecttoprovisionsofthisAgreement.XIII.ForceMajeure1.ForceMajeuremeansanyoccurrencethatisuncontrollable,unpredictableor,ifpredictable,unavoidablebythepartieshereto,causinghindrance,impactordelayonthepartofeitherpartytoperformallorpartofitsobligationsunderthisAgreement.Suchoccurrenceincludeswithoutlimitationearthquake,typhoon,flood,fireorotheractsofGod,war,riot,strikeorothersimilaroccurrences.Thepartiesheretoagreeandacknowledgethatnon-performanceofthisAgreementonthepartofeitherpartyduetoForceMajeuredoesnotconstitutethebreachprovidedunderSection1ofArticleIX,norshallthenon-performingpartybeliabletoanydamagesorcompensationtherefor.2.InoccurrenceofForceMajeure,theaffectedpartyshallnotifythe
otherpartyimmediatelybythemostexpedientmeanspossibleandprovidewithin15daysdocumentsevidencingtheparticularsofsuchoccurrenceandreasonsfornon-performanceofallorpartofthisAgreementordelayperformanceofthisAgreement.ThenthepartiesheretoshallnegotiateastowhethertodelayperformanceoforterminatethisAgreement.XIV.EntireAgreementThisAgreementconstitutesallrepresentationsandagreementsbetweenthepartiesheretoandsupersedesallpriororalandwrittenrepresentations,warranties,understandingsandagreementsbetweenthepartiesrelatingtothesubjectmatterofthisAgreement.ThepartiesheretoagreeandacknowledgethatanyrepresentationorcovenantthatisnotprovidedunderthisAgreementshallnotconstitutebasisofthisAgreementand,therefore,shallnotbethebasistodeterminerespectiverightsandobligationsofthepartiesortointerprettermsandconditionsofthisAgreement.XV.Notices9<PAGE>--------------------------------------------------------------------------------AllnoticesrequiredunderthisAgreementshallbewritteninChineseanddeliveredbyregisteredmail,telecopyorothertelecommunicationmeans.Noticesshallbedeemeddulygivenuponarrivalattheregisteredaddressoftherecipient.Whendeliveredbyregisteredmail,thenoticeshallbedeemedtobedulygivenonthedayofreceiptnotedonthereturnreceipt.Whendeliveredbytelecopy,thenoticeshallbedeemedtobedulygivenwhenthedeliveryisconfirmedbythetelecopymachine.XVI.CounterpartsThisAgreementismadeinChineseinsixoriginalcopies.Eachpartyshallholdoneoriginalcopyandtheremainingcopiesshallbeusedforthepurposeofapprovalbyauthoritiesandregistrationatindustrialandcommercialbureau.Eachcopyshallhavethesamelegaleffect.XVII.SupplementalAgreementorAttachment
Uponagreementandvalidexecutionofthepartieshereto,otherdocumentwhichsupplementsoramendsthisAgreementisanattachmenttothisAgreementandconstitutesanintegralpartofthisAgreement.10<PAGE>--------------------------------------------------------------------------------ExecutionPage(Notext)INWITNESSWHEREOF,thepartiesheretohavecausedthisAgreementtobeexecutedonthedatefirstwrittenabove.By:/s/WangQindai------------------------------------PartyA:Hurray!HoldingCo.,Ltd.LegalRepresentative/AuthorizedRepresentative:WangQindaiBy:/s/[NAMEINCHINESE]------------------------------------PartyB:Nihon-EnterpriseMobile,Ltd.AuthorizedRepresentative:[NAMEINCHINESE]
