Exhibit 10.8
EQUITY PLEDGE AGREEMENT
BY
AND AMONG
ORIENTAL INTRA-ASIA ENTERTAINMENT (CHINA) LIMITED
SHUDONG XIA
ZHIPING ZHANG
ZHIBIN LAI
AND
WEI GAO
EQUITY PLEDGE
AGREEMENT
This Equity Pledge Agreement (the
“Agreement”) is entered into on the day
of February 3, 2009 by and among the following
parties:
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Oritental
Intra-Asia Entertainment (China) Limited
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1701 Yingu
Mansion, No. 9 Beisihuan Road, Haidian District, Beijing,
China.
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Shudong Xia,
Zhiping Zhang, Zhibin Lai, and Wei Gao having the
addresses below:
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Identification
Card No: 422125721020561
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Room 7-3-802
Xingbiaojiayuan,Wanliu,
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Haidian
District, Beijing,China
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Identification
Card No: 11010819690428187X
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Room 14-8-602,
Anheyuan, Tianxiuhuayuan, Haidian District, Beijing,
China
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Identification
Card No: 35262719731111001X
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Room 2010, No.1
Building, Bixingyuanxiaoqu, Luozhuangxili, Zhichun Road, Haidian
District, Beijing, China
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Identification
Card No: 110108197910135427
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Room 307, Unit
3, Building A7, Courtyard #11, Fucheng Road, Haidian District,
Beijing, China
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All of the
Pledgors are the citizen of the People’s Republic of China
("PRC”). The Pledgors, collectively, own 100% of
the Equity Interest in China TransInfo Technology Group Co., Ltd.
(“ Group ”). Group is a company
registered in Beijing carrying on traffic information service
business.
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The Pledgee, a
wholly foreign-owned company registered in Beijing, PRC, has been
licensed by the PRC relevant government authority to carry on the
business of computer and information technology development. The
Pledgee and Group entered into Exclusive Technical Development
and Consulting Agreement (the “Service Agreement”)
on February 3, 2009.
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In order to
ensure that the Pledgee collects development and consulting service
fees from Group, the Pledgors are willing to pledge all of their
equity interest in Group to the Pledgee as a security for the
Pledgee to collect technical consulting and service fees under the
Service Agreement.
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In order to
define each Party’s rights and obligations, the Pledgee and
the Pledgors through mutual negotiations hereby enter into this
Agreement based upon the following terms:
1.
DEFINITIONS AND INTERPRETATIONS
Unless
otherwise provided in this Agreement, the following terms shall
have the following meanings:
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Pledge means
the full meaning assigned to that term in Article 2.
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Equity Interest
means all its 100% equity interests in Group legally held by the
Pledgors.
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Rate of Pledge
means the ratio between the value of the pledge under this
Agreement and the technical consulting and service fees under the
Service Agreement.
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Term of Pledge
means the period provided for under Article 3.2
hereunder.
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Service
Agreement means the Exclusive Technical Consulting and Service
Agreement entered into by and between Group and the
Pledgee.
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Event of
Default means any event in accordance with Article 7
hereunder.
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Notice of
Default means the notice of default issued by the Pledgee in
accordance with this Agreement.
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The Pledgors
agree to pledge all of their Equity Interest in Group to the
Pledgee as a guarantee for the technical consulting and service
fees payable to the Pledgee under the Service Agreement.
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Pledge under
this Agreement refers to the rights owned by the Pledgee who shall
be entitled to have priority in receiving payment or proceeds from
the auction or sale of the equity interests pledged by the Pledgors
to the Pledgee.
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3.
RATE OF PLEDGE AND TERM OF PLEDGE
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The Rate of
Pledge shall be 100%.
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The Pledge of
the Equity Interest under this Agreement shall take effect as of
the date when the Equity Interest under this Agreement are recorded
in the Register of Shareholder of Group and registered with the
competent Administration for Industry and Commerce. The
Term of the Pledge is the same as the term of Service
Agreement.
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During the Term
of Pledge, the Pledgors shall not be entitled to dispose of the
Equity Interests.
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4.
PHYSICAL POSSESSION OF DOCUMENTS
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The Pledgors
shall not be entitled to collect the dividends from the Equity
Interest and any dividends paid upon the Equity Interest shall be
immediately delivered to the Pledgee.
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5.
WARRANTIES AND REPRESENTATIONS OF THE PLEDGORS
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The Pledgors
are the legal owners of the Equity Interest.
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Except as
otherwise provided hereunder, the Pledgee shall not be interfered
with by any parties at any time when the Pledgee exercises its
rights in accordance with this Agreement.
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Except as
otherwise provided hereunder, the Pledgee shall be entitled to
dispose of or assign the Pledge in accordance with this
Agreement.
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The Pledgors
will not pledge or encumber the Equity Interest to any other person
except for the Pledgee.
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6.
COVENANT OF THE PLEDGORS
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During the
effective term of this Agreement, the Pledgors covenant to the
Pledgee that the Pledgors shall:
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Comply with and
implement laws and regulations with respect to the pledge of
rights, present to the Pledgee the notices, orders or suggestions
with respect to the Pledge issued or made by the competent
authority within five (5) days upon receiving such notices, orders
or suggestions and comply with such notices, orders or suggestions,
or object to the foregoing matters at the reasonable request of the
Pledgee or with consent from the Pledgee.
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Timely notify
the Pledgee of any events or any received notices which may affect
the Pledgors’ Equity Interest or any part of its right, and
any events or any received notices which may change the
Pledgors’ any covenant and obligation under this Agreement or
which may affect the Pledgors’ performance of its obligations
under this Agreement.
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The Pledgors
agree that the Pledgee’s right to exercise the Pledge
obtained from this Agreement shall not be suspended or hampered
through legal procedure by the Pledgors or any successors of the
Pledgors or any person authorized by the Pledgors.
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The Pledgors
warrant to the Pledgee that in order to protect or perfect the
security over the payment of the technical consulting and service
fees under the Service Agreement, the Pledgors shall execute in
good faith and cause other parties who have interests in the Pledge
to execute all the title certificates, contracts, and or perform
and cause other parties who have interests to take action as
required by the Pledgee and make a
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