UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
 
SCHEDULE 13D/A
 
Under the Securities Exchange Act of 1934
(Amendment No.5)*
_______________________
 
Shanda Games Limited
(Name of Issuer)
 
Class A Ordinary Shares, par value US$0.01 per share
(Title of Class of Securities)
 
81941U105**
(CUSIP Number)
 
Premium Lead Company Limited
Shanda Interactive Entertainment Limited
Shanda SDG Investment Limited
8 Stevens Road
Singapore 257819
(65) 6361 0060
(Name, Address and Telephone Number of
Person Authorized to Receive Notices
and Communications)

with a copy to:

Zhan Chen, Esq.
Wilson Sonsini Goodrich & Rosati, P.C.
Unit 1001, 10/F Henley Building
5 Queen’s Road Central
Hong Kong
(852) 3972-4955
______________________
 
September 1, 2014
(Date of Event which Requires Filing
of this Statement)
 
If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 1(f) or 1(g), check the following box [ ].
 
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-1(a) for other parties to whom copies are to be sent.
 
*The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
 
** This CUSIP applies to the American Depositary Shares, evidenced by American Depositary Receipts, each representing two Class A ordinary shares.
 
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
 
 
 

 
 

CUSIP No. 81941U105
1.
Names of Reporting Persons.
 
Premium Lead Company Limited
2.
Check the Appropriate Box if a Member of a Group (See Instructions).
 
(a)  x
(b)  o
3.
SEC Use Only
 
 
4.
Source of Funds (See Instructions)
 
PF, OO
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
 
 
6.
Citizenship or Place of Organization
 
British Virgin Islands
Number of Shares Beneficially
Owned by
Each Reporting
Person With
7.
 
Sole Voting Power   0
 
8.
 
Shared Voting Power  349,801,719 Class B ordinary Shares(1)
 
9.
 
Sole Dispositive Power   0
 
10.
 
Shared Dispositive Power   349,801,719 Class B ordinary Shares (1)
 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
 
349,801,719 Class B ordinary Shares (1)
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
 
 
13.
Percent of Class Represented by Amount in Row (11)
 
100.0% (2)(3)
14.
Type of Reporting Person (See Instructions)
 
 
CO
 
 
(1)  
representing 349,801,719 Class B ordinary shares held by Shanda SDG Investment Limited, a British Virgin Islands corporation and a direct wholly owned subsidiary of Shanda Interactive Entertainment Limited, which is in turn wholly owned by Premium Lead Company Limited.
 
(2)  
percentage calculated based on total Class B ordinary shares outstanding as of August 31, 2014. As of August 31, 2014, 187,395,237 Class A ordinary shares (including Class A ordinary shares represented by American Depositary Shares “ADSs”) and 349,801,719 Class B ordinary shares were outstanding.
 
(3)  
each Class A ordinary share is entitled to one vote per share and is not convertible into Class B ordinary share. Each Class B ordinary share is entitled to 10 votes per share and is convertible at any time into one Class A ordinary share at the election of its holder. The 349,801,719 Class B ordinary shares held by Shanda SDG Investment Limited of record represent approximately 65.1% of the total outstanding shares (including Class A ordinary shares (including Class A ordinary shares represented by ADSs) and Class B ordinary shares) and 94.9% of the total voting rights as of August 31, 2014.
 
 
 

 
 

CUSIP No. 81941U105
1.
Names of Reporting Persons.
 
Shanda Interactive Entertainment Limited
2.
Check the Appropriate Box if a Member of a Group (See Instructions).
 
(a)  x
(b)  o
3.
SEC Use Only
 
 
4.
Source of Funds (See Instructions)
 
PF, OO
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
 
 
6.
Citizenship or Place of Organization
 
Cayman Islands
Number of Shares Beneficially
Owned by
Each Reporting
Person With
7.
 
Sole Voting Power   0
 
8.
 
Shared Voting Power  349,801,719 Class B ordinary Shares (1)
 
9.
 
Sole Dispositive Power   0
 
10.
 
Shared Dispositive Power   349,801,719 Class B ordinary Shares (1)
 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
 
349,801,719 Class B ordinary Shares (1)
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
 
 
13.
Percent of Class Represented by Amount in Row (11)
 
100.0% (2)(3)
14.
Type of Reporting Person (See Instructions)
 
 
CO
 
 
(1)  
representing 349,801,719 Class B ordinary shares held by Shanda SDG Investment Limited, a British Virgin Islands corporation and a direct wholly owned subsidiary of Shanda Interactive Entertainment Limited, a Cayman Islands corporation.
 
(2)  
percentage calculated based on total Class B ordinary shares outstanding as of August 31, 2014. As of August 31, 2014, 187,395,237 Class A ordinary shares (including Class A ordinary shares represented by ADSs) and 349,801,719 Class B ordinary shares were outstanding.

(3)  
each Class A ordinary share is entitled to one vote per share and is not convertible into Class B ordinary share. Each Class B ordinary share is entitled to 10 votes per share and is convertible at any time into one Class A ordinary share at the election of its holder. The 349,801,719 Class B ordinary shares held by Shanda SDG Investment Limited of record represent approximately 65.1% of the total outstanding shares (including Class A ordinary shares (including Class A ordinary shares represented by ADSs) and Class B ordinary shares) and 94.9% of the total voting rights as of August 31, 2014.
 
 
 
 

 


CUSIP No. 81941U105
1.
Names of Reporting Persons.
 
Shanda SDG Investment Limited
2.
Check the Appropriate Box if a Member of a Group (See Instructions).
 
(a)  
(b)  
3.
SEC Use Only
 
 
4.
Source of Funds (See Instructions)
 
PF, OO
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
 
 
6.
Citizenship or Place of Organization
 
British Virgin Islands
Number of Shares Beneficially
Owned by
Each Reporting
Person
With
7.
 
Sole Voting Power   0
 
8.
 
Shared Voting Power  349,801,719 Class B ordinary Shares (1)
 
9.
 
Sole Dispositive Power   0
 
10.
 
Shared Dispositive Power   349,801,719 Class B ordinary Shares (1)
 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
 
349,801,719 Class B ordinary Shares (1)
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
 
 
13.
Percent of Class Represented by Amount in Row (11)
 
100.0% (2)(3)
14.
Type of Reporting Person (See Instructions)
 
 
CO
 
 
(1)  
representing 349,801,719 Class B ordinary shares held by Shanda SDG Investment Limited, a British Virgin Islands corporation.
 
(2)  
percentage calculated based on total Class B ordinary shares outstanding as of August 31, 2014. As of August 31, 2014, 187,395,237 Class A ordinary shares (including Class A ordinary shares represented by ADSs) and 349,801,719 Class B ordinary shares were outstanding.

(3)  
each Class A ordinary share is entitled to one vote per share and is not convertible into Class B ordinary share. Each Class B ordinary share is entitled to 10 votes per share and is convertible at any time into one Class A ordinary share at the election of its holder. The 349,801,719 Class B ordinary shares held by Shanda SDG Investment Limited of record represent approximately 65.1% of the total outstanding shares (including Class A ordinary shares (including Class A ordinary shares represented by ADSs) and Class B ordinary shares) and 94.9% of the total voting rights as of August 31, 2014.


 
 

 


Introduction

This Schedule 13D/A (the “Schedule 13D/A”) amends the previous Schedule 13D filed by the Reporting Persons (as defined below) with the SEC on January 30, 2014, as amended and supplemented by the Amendment No. 1 filed under Schedule 13D/A on February 19, 2014, the Amendment No. 2 filed under Schedule 13D/A on April 21, 2014, the Amendment No. 3 filed under Schedule 13D/A on April 28, 2014 and the Amendment No. 4 filed under Schedule 13D/A on May 19, 2014 (the “Original 13D”) with respect to Shanda Games Limited (the “Company”). Except as amended and supplemented herein, the information set forth in the Original 13D remains unchanged.  Capitalized terms used herein without definition have meanings assigned thereto in the Original 13D.
  
Item 2. Identity and Background.

Item 2 is hereby amended and restated as follows:

This Statement is being jointly filed by a group, as defined in Rule 13d-5 of the General Rules and Regulations promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The members of the group are:

 
1)  
Premium Lead Company Limited (“Premium Lead”), a company established under the laws of the British Virgin Islands, with its registered office at Woodbourne Hall, Road Town, Tortola, British Virgin Islands, its principal business address at 8 Stevens Road 257819 Singapore and its principal business in investment holding;
 
 
2)  
Shanda Interactive Entertainment Limited (“Shanda Interactive”), a company established under the laws of the Cayman Islands, with its registered office at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands, its principal business address at 8 Stevens Road 257819 Singapore and its principal business in investment holding;
 
 
3)  
Shanda SDG Investment Limited (“SDG” and together with Premium Lead and Shanda Interactive, the “Reporting Persons”), a company established under the laws of the British Virgin Islands, with its registered office at Commere House, Wickhams Cay 1, P.O. Box 3140, Road Town, Tortola, British Virgin Islands VG1110, its principal business address at Unit 403A, 4/F Golden Centre, 188 Des Voeux Road Central, Hong Kong and its principal business in investment holding.

SDG is the record holder of 349,801,719 Class B Ordinary Shares. All of the shares in SDG are held by Shanda Interactive. All of the shares in Shanda Interactive are held by Premium Lead. The board of directors of Premium Lead has three members, Mr. Tianqiao Chen, Ms. Qian Qian Chrissy Luo and Mr. Danian Chen. Premium Lead is beneficially owned as to 40% by Mr. Tianqiao Chen, 30% by Mr. Danian Chen and 30% by Ms. Qian Qian Chrissy Luo.

During the last five years, none of the Reporting Persons has been (i) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
 
 
 

 

 
Item 4. Purpose of Transaction.

Item 4 is hereby amended and restated as follows: 

On January 27, 2014, Shanda Interactive and  Primavera Capital (Cayman) Fund I L.P. (“Primavera”, together with Shanda Interactive, the “Consortium” and each member in the Consortium, a “Consortium Member”) entered into a consortium agreement (the “Consortium Agreement”). Under the Consortium Agreement, the Consortium Members agreed, among other things, (i) to jointly deliver a preliminary non-binding proposal (the “Proposal”) to the Board to acquire the Company in a going private transaction (the “Transaction”), (ii) to deal exclusively with each other with respect to the Transaction until the earlier of (x) 9 months after the date thereof, and (y) termination of the Consortium Agreement by all Consortium Members, (iii) to use their reasonable efforts and cooperate in good faith to arrange debt financing to support the Transaction, and (iv) to cooperate and proceed in good faith to negotiate and consummate the Transaction.

On January 27, 2014, the Consortium Members submitted the Proposal to the Board. In the Proposal, the Consortium Members proposed to acquire the Company in a going private transaction at a price of US$6.90 in cash per ADS (each representing two Class A Ordinary Shares) or $3.45 in cash per Class A or Class B Ordinary Share. According to the Proposal, the Consortium Members do not intend to sell their stake in the Company to any third party. SDG may consider selling additional shares of the Company to the Consortium. The Consortium Members intend to finance the Transaction through a combination of debt and equity financing. For a brief description of the financing plan, please refer to Item 3 of the Original 13D.

On January 27, 2014, SDG and  Primavera entered into a share purchase agreement (the “PV Share Purchase Agreement”) pursuant to which SDG agreed to sell, and Primavera agreed to purchase, 28,959,276 Class A Ordinary Shares (the “PV Purchase Shares”) at US$2.7625 per Class A Ordinary Share (the “PV Purchase Price”) subject to the terms and conditions thereof. Pursuant to the PV Share Purchase Agreement, if (i) a going-private transaction occurs within one year of the closing date of the sale of PV Purchase Shares where Primavera is part of the buyer consortium and the price per share in the going-private transaction (“Going-private Price”) is higher than the PV Purchase Price, or (ii) a going-private transaction occurs within one year of the closing date of the sale of PV Purchase Shares where Primavera is not part of the buyer consortium due to its own decision or election without SDG’s written consent and the Going-private Price is higher than the PV Purchase Price, Primavera shall pay SDG the shortfall between the PV Purchase Price and the Going-private Price with respect to all PV Purchase Shares.  Pursuant to the PV Share Purchase Agreement, if a going-private transaction is not consummated within one year of the closing date of the sale of PV Purchase Shares solely due to SDG’s failure to vote in favor of such going-private transaction, SDG shall repurchase the PV Purchase Shares at a per share price equal to the PV Purchase Price. The purchase and sale of the PV Purchase Shares was completed on February 17, 2014.

On April 18, 2014, SDG and Perfect World Co., Ltd. (“Perfect World”) entered into a share purchase agreement (the “PW Share Purchase Agreement”) pursuant to which SDG agreed to sell, and Perfect World agreed to purchase, 30,326,005 Class A Ordinary Shares (the “PW Purchase Shares”) at US$3.2975 per Class A Ordinary Share (the “PW Purchase Price”) subject to the terms and conditions thereof. Pursuant to the PW Share Purchase Agreement, if (i) a going-private transaction occurs within one year of the closing date of the sale of PW Purchase Shares where Perfect World is part of the buyer consortium and the Going-private Price is higher than the PW Purchase Price, or (ii) a going-private transaction occurs within one year of the closing date of the sale of PW Purchase Shares where Perfect World is not part of the buyer consortium due to its own decision or election without SDG’s written consent and the Going-private Price is higher than the PW Purchase Price, Perfect World shall pay SDG the shortfall between the PW Purchase Price and the Going-private Price with respect to all PW Purchase Shares.  Pursuant to the PW Share Purchase Agreement, if a going-private transaction is not consummated within one year of the closing date of the sale of PW Purchase Shares solely due to SDG’s failure to vote in favor of such going-private transaction, SDG shall repurchase the PW Purchase Shares at a per share price equal to the PW Purchase Price. The purchase and sale of the PW Purchase Shares was completed on May 16, 2014.
 
 
 

 

 
Concurrently with the execution of the PW Share Purchase Agreement, Shanda Interactive, Primavera and Perfect World entered into an adherence agreement (the “PW Adherence Agreement”), pursuant to which Perfect World became a party to the Consortium Agreement and joined the Consortium. References to “Consortium” or “Consortium Members” after April 18, 2014 shall include Perfect World.

On April 25, 2014, FV Investment Holdings (“FV Investment”), which is an affiliate of FountainVest Partners, Shanda Interactive, Primavera and Perfect World entered into an adherence agreement (the “FV Adherence Agreement”), pursuant to which FV Investment became a party to the Consortium Agreement and joined the Consortium. References to “Consortium” or “Consortium Members” after April 25, 2014 shall include FV Investment.

On May 19, 2014, CAP IV Engagement Limited (“Carlyle”), which is an affiliate of Carlyle Asia Partners IV, L.P., Shanda Interactive, Primavera, Perfect World and FV Investment entered into an adherence agreement (the “Carlyle Adherence Agreement”), pursuant to which Carlyle became a party to the Consortium Agreement and joined the Consortium. References to “Consortium” or “Consortium Members” after May 19, 2014 shall include Carlyle.

On August 31, 2014, SDG and Orient Finance Holdings (Hong Kong) Limited, a company limited by shares incorporated and existing under the laws of Hong Kong  (“Orient Finance”) entered into a share purchase agreement (the “Orient Share Purchase Agreement”) pursuant to which SDG agreed to sell, and Orient Finance agreed to purchase, 123,552,669 Class A Ordinary Shares (the “Orient Purchase Shares”) at US$3.45 per Class A Ordinary Share (the “Orient Purchase Price”) subject to the terms and conditions thereof. Pursuant to the Orient Share Purchase Agreement, if (i) a going-private transaction occurs within one year of the closing date of the sale of Orient Purchase Shares where Orient Finance is part of the buyer consortium and the Going-private Price is higher than the Orient Purchase Price, or (ii) a going-private transaction occurs within one year of the closing date of the sale of Orient Purchase Shares where Orient Finance is not part of the buyer consortium due to its own decision or election without SDG’s written consent and the Going-private Price is higher than the Orient Purchase Price, Orient shall pay SDG the shortfall between the Orient Purchase Price and the Going-private Price with respect to all Orient Purchase Shares.  Pursuant to the Orient Share Purchase Agreement, if a going-private transaction is not consummated within one year of the closing date of the sale of Orient Purchase Shares solely due to SDG’s failure to vote in favor of such going-private transaction, SDG shall repurchase the Orient Purchase Shares at a per share price equal to the Orient Purchase Price.

On September 1, 2014, Perfect World, FV Investment and Carlyle withdrew from the Consortium pursuant to a withdrawal notice (the “Withdrawal Notice”). References to “Consortium” or “Consortium Members” after September 1, 2014 shall not include Perfect World, FV Investment and Carlyle.
 
 
 

 

 
On September 1, 2014, Shanda Interactive, Primavera and Orient entered into an adherence agreement (the “Orient Adherence Agreement”), pursuant to which Orient became a party to the Consortium Agreement and joined the Consortium. References to “Consortium” or “Consortium Members” after September 1, 2014 shall include Orient Finance.

On September 1, 2014, SDG and Shanghai Buyout Fund L.P., a limited partnership formed under the laws of the People’s Republic of China (“Haitong”) entered into a share purchase agreement (the “Haitong Share Purchase Agreement”) pursuant to which SDG agreed to sell, and Haitong  agreed to purchase, 48,152,848 Class A Ordinary Shares (the “Haitong Purchase Shares”) at US$3.45 per Class A Ordinary Share (the “Haitong Purchase Price”) subject to the terms and conditions thereof. Pursuant to the Haitong Share Purchase Agreement, if (i) a going-private transaction occurs within one year of the closing date of the sale of Haitong Purchase Shares where Haitong is part of the buyer consortium and the Going-private Price is higher than the Haitong Purchase Price, or (ii) a going-private transaction occurs within one year of the closing date of the sale of Haitong Purchase Shares where Haitong is not part of the buyer consortium due to its own decision or election without SDG’s written consent and the Going-private Price is higher than the Haitong Purchase Price, Haitong shall pay SDG the shortfall between the Haitong Purchase Price and the Going-private Price with respect to all Haitong Purchase Shares.  Pursuant to the Haitong Share Purchase Agreement, if a going-private transaction is not consummated within one year of the closing date of the sale of Haitong Purchase Shares solely due to SDG’s failure to vote in favor of such going-private transaction, SDG shall repurchase the Haitong Purchase Shares at a per share price equal to the Haitong Purchase Price.

Concurrently with the execution of the Haitong Share Purchase Agreement, Primavera, Perfect World and Haitong entered into a share purchase agreement, pursuant to which Haitong agreed to purchase 28,959,276 and 30,326,005 Class A Ordinary Shares from Primavera and Perfect World, respectively. In connection with that transaction, SDG, Primavera and Perfect World entered into a consent and release dated as of September 1, 2014 (the “Consent and Release”), pursuant to which all remaining obligations of Primavera and its affiliates and SDG and its affiliates under the PV Share Purchase Agreement, and all remaining obligations of Perfect World and its affiliates and SDG and its affiliates under the PW Share Purchase Agreement, as applicable, shall automatically terminate. The transaction is expected to be consummated within 30 days, subject to the satisfaction of customary closing conditions.

On the same day, Shanda Interactive, Primavera and Haitong entered into an adherence agreement (the “Haitong Adherence Agreement”), pursuant to which Haitong became a party to the Consortium Agreement and joined the Consortium. References to “Consortium” or “Consortium Members” after September 1, 2014 shall include Haitong.

On September 1, 2014, SDG and Ningxia Zhongyincashmere International Group Co., Ltd., a company formed under the laws of People’s Republic of China (“Ningxia”) entered into a share purchase agreement (the “Ningxia Share Purchase Agreement”) pursuant to which SDG agreed to sell, and Ningxia  agreed to purchase, 80,577,828 Class A Ordinary Shares (the “Ningxia Purchase Shares”) at US$3.45 per Class A Ordinary Share (the “Ningxia Purchase Price”) subject to the terms and conditions thereof. Pursuant to the Ningxia Share Purchase Agreement, if (i) a going-private transaction occurs within one year of the closing date of the sale of Ningxia Purchase Shares where Ningxia is part of the buyer consortium and the Going-private Price is higher than the Ningxia Purchase Price, or (ii) a going-private transaction occurs within one year of the closing date of the sale of Ningxia Purchase Shares where Ningxia is not part of the buyer consortium due to its own decision or election without SDG’s written consent and the Going-private Price is higher than the Ningxia Purchase Price, Ningxia shall pay SDG the shortfall between the Ningxia Purchase Price and the Going-private Price with respect to all Ningxia Purchase Shares.  Pursuant to the Ningxia Share Purchase Agreement, if a going-private transaction is not consummated within one year of the closing date of the sale of Ningxia Purchase Shares solely due to SDG’s failure to vote in favor of such going-private transaction, SDG shall repurchase the Ningxia Purchase Shares at a per share price equal to the Ningxia Purchase Price.
 
 
 

 

 
On the same day, Shanda Interactive, Primavera and Ningxia entered into an adherence agreement (the “Ningxia Adherence Agreement”), pursuant to which Ningxia became a party to the Consortium Agreement and joined the Consortium. References to “Consortium” or “Consortium Members” after September 1, 2014 shall include Ningxia.

On September 1, 2014, Primavera withdrew from the Consortium pursuant to a withdrawal notice (the “Primavera Withdrawal Notice”). References to “Consortium” or “Consortium Members” after September 1, 2014 shall not include Primavera.

If the Transaction is completed, the ADSs would be delisted from the NASDAQ Global Select Market and the Company’s obligations to file periodic report under the Exchange Act would be terminated.

Description of the Proposal, the Consortium Agreement, the PV Share Purchase Agreement, the PW Share Purchase Agreement, the Orient Share Purchase Agreement, the Haitong Share Purchase Agreement, the Ningxia Share Purchase Agreement, the PW Adherence Agreement, the FV Adherence Agreement, the Carlyle Adherence Agreement,  the Orient Adherence Agreement, the Haitong Adherence Agreement, the Ningxia Adherence Agreement, the Withdrawal Notice, the Primavera Withdrawal Notice, and the Consent and Release in this Schedule 13D/A are qualified in their entirety by reference to the Proposal, the Consortium Agreement, the PV Share Purchase Agreement, the PW Share Purchase Agreement, the Orient Share Purchase Agreement, the Haitong Share Purchase Agreement, the Ningxia Share Purchase Agreement, the PW Adherence Agreement, the FV Adherence Agreement, the Carlyle Adherence Agreement, the Orient Adherence Agreement, the Haitong Adherence Agreement and the Ningxia Adherence Agreement copies of which are filed as Exhibits 7.02, 7.03, 7.04, 7.05, 7.06, 7.07,7.08, 7.09, 7.10, 7.11, 7.12, 7.13, 7.14, 7.15, 7.16 and 7.17 hereto and incorporated herein by reference in their entirety.

In addition, consummation of the Transaction could result in one or more of the actions specified in clauses (a)-(j) of Item 4 of Schedule 13D/A, including the acquisition or disposition of securities of the Company, a merger or other extraordinary transaction involving the Company, a change to the Board (as the board of the surviving company in the merger) to consist solely of persons to be designated by the Consortium Members, and a change in the Company’s memorandum and articles of association to reflect that the Company would become a privately held company. No assurance can be given that any proposal, any definitive agreement or any transaction relating to the Transaction will be entered into or be consummated. The Proposal provides that no binding obligation shall arise with respect to the Transaction unless and until definitive agreements have been executed.
 
 
 

 

 
Item 5. Interest in Securities of the Issuer.

Item 5(a) – (b) is hereby amended and restated as follows:
 
(a) – (b) As of the date hereof, Premium Lead beneficially owns 349,801,719 Class B Ordinary Shares, all of which are held of record by SDG, accounting for 100% of the total Class B Ordinary Shares and approximately 65.1% of the total outstanding shares (including Class A Ordinary Shares (including Class A Ordinary Shares represented by ADSs) and Class B Ordinary Shares) of the Company and representing approximately 94.9% of the total voting rights in the Company. Mr. Tianqiao Chen, Ms. Qian Qian Chrissy Luo and Mr. Danian Chen, who are the directors as well as the beneficial owners of Premium Lead, share voting and dispositive control over such Class B Ordinary Shares.

As of the date hereof, Shanda Interactive beneficially owns 349,801,719 Class B Ordinary Shares, all of which are held of record by SDG, accounting for 100% of the total Class B Ordinary Shares and approximately 65.1% of the total outstanding shares (including Class A Ordinary Shares (including Class A Ordinary Shares represented by ADSs) and Class B Ordinary Shares) of the Company and representing approximately 94.9% of the total voting rights in the Company. Mr. Tianqiao Chen, Ms. Qian Qian Chrissy Luo and Mr. Danian Chen, who are the directors as well as the beneficial owners of Premium Lead, share voting and dispositive control over such Class B Ordinary Shares.

As of the date hereof, SDG beneficially owns 349,801,719 Class B Ordinary Shares, all of which are held of record by itself, accounting for 100% of the total Class B Ordinary Shares and approximately 65.1% of the total outstanding shares (including Class A Ordinary Shares (including Class A Ordinary Shares represented by ADSs) and Class B Ordinary Shares) of the Company and representing approximately 94.9% of the total voting rights in the Company. Mr. Tianqiao Chen, Ms. Qian Qian Chrissy Luo and Mr. Danian Chen, who are the directors as well as the beneficial owners of Premium Lead, share voting and dispositive control over such Class B Ordinary Shares.

In addition, pursuant to Section 13(d)(3) of the Act, Orient Finance, Haitong, Ningxia and the Reporting Persons may, on the basis of the facts described elsewhere herein, be considered to be a “group”. Neither the filing of this Schedule 13D/A nor any of its contents shall be deemed to constitute an admission by the Reporting Persons that they are the beneficial owner of any Ordinary Shares as may be beneficially owned by Orient Finance, Haitong or Ningxia for purposes of Section 13(d) of the Act or for any other purpose, and such beneficial ownership is expressly disclaimed.
 
 
 

 

 
Item 7. Materials to be Filed as Exhibits.

Exhibit 7.01:
 
Joint Filing Agreement dated January 30, 2014 (incorporated by reference to Exhibit 7.01 of the Schedule 13D filed by the Reporting Persons on January 30, 2014)
     
Exhibit 7.02:
 
Proposal dated January 27, 2014 (incorporated by reference to Exhibit 7.02 of the Schedule 13D filed by the Reporting Persons on January 30, 2014)
     
Exhibit 7.03:
 
Consortium Agreement dated January 27, 2014 (incorporated by reference to Exhibit 7.03 of the Schedule 13D filed by the Reporting Persons on January 30, 2014)
     
Exhibit 7.04:
 
PV Share Purchase Agreement dated January 27, 2014 (incorporated by reference to Exhibit 7.04 of the Schedule 13D filed by the Reporting Persons on January 30, 2014)
     
Exhibit 7.05:
 
PW Share Purchase Agreement dated April 18, 2014 (incorporated by reference to Exhibit 7.05 of the Schedule 13D/A filed by the Reporting Persons on April 21, 2014)
     
Exhibit 7.06:
 
PW Adherence Agreement dated April 18, 2014 (incorporated by reference to Exhibit 7.06 of the Schedule 13D/A filed by the Reporting Persons on April 21, 2014)
     
Exhibit 7.07:
 
FV Adherence Agreement dated April 25, 2014 (incorporated by reference to Exhibit 7.07 of the Schedule 13D/A filed by the Reporting Persons on April 28, 2014)
     
Exhibit 7.08:
 
Carlyle Adherence Agreement dated May 19, 2014 (incorporated by reference to Exhibit 7.08 of the Schedule 13D/A filed by the Reporting Persons on May 19, 2014)
     
Exhibit 7.09:
 
Orient Share Purchase Agreement dated August 31, 2014
     
Exhibit 7.10:
 
Haitong Share Purchase Agreement dated September 1, 2014
     
Exhibit 7.11:
 
Ningxia Share Purchase Agreement dated September 1, 2014
     
Exhibit 7.12:
 
Orient Adherence Agreement dated September 1, 2014
     
Exhibit 7.13:
 
Haitong Adherence Agreement dated September 1, 2014
     
Exhibit 7.14:
 
Ningxia Adherence Agreement dated September 1, 2014
     
Exhibit 7.15:
 
Withdrawal Notice dated September 1, 2014
     
Exhibit 7.16:
 
Primavera Withdrawal Notice dated September 1, 2014
     
Exhibit 7.17:
 
Consent and Release dated September 1, 2014
 

 
 
 

 

SIGNATURE
 
After reasonable inquiry and to the best of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.
 
Dated September 2, 2014
 
 
 
Premium Lead Company Limited
 
By:       /s/Tianqiao Chen
 
Name: Tianqiao Chen
 
Title: Director
   
 
 
 
 
Shanda Interactive Entertainment Limited
 
By:      /s/Tianqiao Chen
 
Name: Tianqiao Chen
 
Title: Director
   
 
 
 
 
Shanda SDG Investment Limited
 
By:      /s/Tianqiao Chen
 
Name: Tianqiao Chen
 
Title: Director
   
   
 
 
 


 


 


Exhibit 7.09

 
SHARE PURCHASE AGREEMENT

SHARE PURCHASE AGREEMENT, dated as of August 31, 2014 (this “Agreement”), by and between Shanda SDG Investment Limited (the “Seller”), a British Virgin Islands corporation and a direct wholly-owned subsidiary of Shanda Interactive Entertainment Limited, a Caymans Islands company, and Orient Finance Holdings (Hong Kong) Limited, a Hong Kong company (together with any permitted transferee or assignee thereof under this Agreement, the “Purchaser”, together with the Seller, each a “Party” and collectively, the “Parties”). Capitalized terms not otherwise defined shall have the meaning ascribed in Section 6.1 hereof.

W I T N E S S E T H :

WHEREAS, the Seller is the owner of 123,552,669 Class B Ordinary Shares of the Issuer (the “Class B Shares”) and intends to convert such shares into the same number of Class A Ordinary Shares of the Issuer (as converted, the “Shares”); and

WHEREAS, the Seller intends to sell to the Purchaser, and the Purchaser intends to purchase from the Seller, all of the Seller’s right, title and interest in and pertaining to the Shares at the Purchase Price, all upon the terms and conditions hereinafter set forth;

NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained, it is agreed as follows:
 
1. PURCHASE AND SALE

1.1 Purchase and Sale. Subject to the terms and conditions set forth in this Agreement, the Purchaser agrees to purchase from the Seller, and the Seller agrees to sell, transfer and assign to the Purchaser, on the Closing Date, all of the Seller’s right, interest and title in the Shares (including all dividends, distributions and other benefits attaching to the Shares) for the Purchase Price. On the Closing Date, the Purchaser shall pay the Purchase Price to the Seller by a wire transfer of immediately available funds in U.S. dollars into an account designated by the Seller.

1.2 The Closing.

(a) The closing of the purchase and sale of the Shares and the other transactions contemplated hereby (the “Closing”) shall take place no later than the fifteenth (15th) Business Day immediately after the date of this Agreement, or such other date as may be agreed by both Parties in writing (the “Closing Date”).

(b) At the Closing:

(i) the Seller shall deliver, or cause to be delivered, to the Purchaser:

(A) the original stock certificates representing the Shares, if any;
 
 
 

 
 
(B) a share transfer form duly executed by the Seller in respect of the Shares in favor of the Purchaser;

(C) a certified copy of the updated register of members of the Issuer reflecting the Purchaser as the sole holder of the Shares;

(D) a new share certificate in the name of the Purchaser in respect of the Shares;

 (E) all such other documents and instruments, if any, that are mutually determined by the Seller and the Purchaser to be necessary to effectuate the transactions contemplated by this Agreement; and
 
(ii) the Purchaser shall deliver, or cause to be delivered, to the Seller

 (A) a wire transfer of immediately available funds into an account designated by the Seller in the amount of the Purchase Price; and

(B) all such other documents and instruments, if any, that are mutually determined by such Seller and the Purchaser to be necessary to effectuate the transactions contemplated by this Agreement.

(c) Unless otherwise agreed by the Seller and the Purchaser, all actions at Closing are inter-dependent and will be deemed to take place simultaneously and no delivery or payment will be deemed to have been made until all deliveries and payments under this Agreement due to be made at Closing have been made.

2. PURCHASER’S REPRESENTATIONS AND WARRANTIES

The Purchaser makes the following representations and warranties to the Seller, each and all of which shall be true and correct as of the date of this Agreement and the Closing Date:

2.1 Authority; Binding Effect. The Purchaser has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly and validly executed and delivered by the Purchaser and (assuming the due execution and delivery thereof by the Seller) constitutes the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms.

2.2 No Conflicts. Except as would not have a material impact on the Purchaser’s ability to consummate the transactions contemplated by this Agreement, the execution and delivery of this Agreement and the consummation of the transactions contemplated herein and compliance by the Purchaser with its obligations hereunder do not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default under, or result in the creation or imposition of any tax, lien, charge or encumbrance upon any property or assets of the Purchaser pursuant to any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, license, lease or other agreement or instrument to which the Purchaser is a party or by which the Purchaser is bound, or to which any of the property or assets of the Purchaser is subject, nor does such
 
 
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action result in any violation of the provisions of Organizational Documents of the Purchaser or any applicable treaty, law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court, domestic or foreign, having jurisdiction over the Purchaser or any of its property or assets.

2.3 No Consents. No filing with, or consent, approval, authorization, order, registration, qualification or decree of, any court or governmental authority or agency, of any country or nation, is necessary or required for entry into this Agreement by the Purchaser or the performance by the Purchaser of its obligations hereunder.

2.4 Purchase for Investment. The Purchaser is acquiring the Shares for investment for its own account and not with a view toward any resale or distribution thereof except in compliance with the Securities Act. The Purchaser does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to any person with respect to the Shares. The Purchaser hereby acknowledges that the Shares have not been registered pursuant to the Securities Act and may not be transferred in the absence of such registration thereunder or an exemption therefrom.

2.5 Purchaser Status. The Purchaser is either (i) not a U.S. Person (as defined in Rule 902 of Regulation S promulgated under the Securities Act) or (ii) an “accredited investor” within the meaning in Rule 501 of Regulation D promulgated under the Securities Act. Such Investor has the knowledge, sophistication and experience necessary to make an investment decision like that involved in the purchase of the Shares and can bear the economic risk of its investment in the Shares.

2.6 Access. The Purchaser has and had access to such reports, statements and announcements publicly released or published by the Issuer as shall have been reasonably necessary for the Purchaser to be capable of evaluating the merits and risks of the transactions contemplated by this Agreement. The Purchaser has such knowledge and experience in financial and business matters as to enable the Purchaser to make an informed decision with respect to the Purchaser’s purchase of the Shares. The Purchaser is a sophisticated investor and has independently evaluated the merits of its decision to purchase the Shares pursuant to this Agreement. In connection with such purchase, the Purchaser is not relying on the Seller or any of its affiliates or representatives (including any act, representation or warranty by the Seller or any of its affiliates or representatives) in any respect in making its decision to make such purchase except for such representations and warranties of the Seller made under Section 3 below.

3. SELLER’S REPRESENTATIONS AND WARRANTIES

The Seller makes the following representations and warranties to the Purchaser, each and all of which shall be true and correct as of the date of this Agreement and the Closing Date:

3.1 Authority; Binding Effect. The Seller has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly and validly executed and delivered by the Seller and (assuming the due execution and delivery thereof by the Purchaser) constitutes the legal, valid and binding obligations of the Seller, enforceable against the Seller in accordance with its terms.
 
 
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3.2 Ownership and Transfer. The Seller has valid title to the Class B Shares, and will have valid title to the Shares prior to the Closing, in each case free and clear of all security interests, claims, liens, equities or other encumbrances (collectively, “Liens”). Upon transfer, assignment and delivery of the Shares and payment therefor in accordance with the terms of this Agreement, the Purchaser will acquire good and marketable title to the Shares, free and clear of any and all Liens.

3.3 Litigation. There is no legal proceeding pending or, to the knowledge of the Seller, threatened, against the Seller or to which the Seller is otherwise a party relating to this Agreement or the transactions contemplated hereby.

3.4 No Conflicts.  Except as disclosed in the SEC Documents, the execution and delivery of this Agreement and the sale and delivery of the Shares by the Seller and the consummation of the transactions contemplated herein and compliance by the Seller with its obligations hereunder do not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default under, or result in the creation or imposition of any tax, lien, charge or encumbrance upon the Shares or any property or assets of the Seller pursuant to any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, license, lease or any other agreement or instrument to which the Seller is a party or by which the Seller is bound, or to which any of the property or assets of the Seller is subject, nor does such action result in any violation of the provisions of Organizational Documents of the Seller or any applicable treaty, law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court, domestic or foreign, having jurisdiction over the Seller or any of its property or assets.
 
 
3.5 No Consents. No filing with, or consent, approval, authorization, order, registration, qualification or decree of, any court or governmental authority or agency, of any country or nation, is necessary or required for the performance by the Seller of its obligations hereunder, or in connection with the sale and delivery of the Shares hereunder or the consummation of the transactions contemplated by this Agreement.

3.6 SEC Documents. To the knowledge of the Seller, the Issuer has filed with the Securities and Exchange Commission of the United States of America (the “SEC”) all forms, reports, schedules, statements, exhibits and other documents required to be filed under the Exchange Act or the Securities Act (all forms, reports, schedules, statements, exhibits and other documents filed or furnished by the Issuer with the SEC, collectively, the “SEC Documents”). To the knowledge of the Seller, as of its filing date, or, if amended, as of the date of the last such amendment, each SEC Document did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.

3.7 Absence of Certain Developments. To the best knowledge of the Seller, since December 31, 2013 there has been no Material Adverse Effect that is required to be, but has not been, disclosed in the SEC Documents, other than adverse effects relating to changes in general economic or political conditions or changes generally affecting the industry in which the Issuer operates.

4. CONDITIONS PRECEDENT
 
 
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4.1 The obligations of the Seller under Sections 1.1 and 1.2(b)(i) hereof are subject to the following conditions:

(a) All of the representations and warranties of the Purchaser contained in Section 2 shall be true and correct in all material respects (other than the Purchaser’s representations and warranties set forth in Section 2.1 which shall be true and correct in all respects) on and as of the date hereof and on the Closing Date, and

(b) The Purchaser has performed all of its obligations contained in this Agreement (to be performed prior to the Closing) in all material respects.

4.2 The obligations of the Purchaser under Sections 1.1 and 1.2(b)(ii) hereof are subject to the following conditions:

(a) All of the representations and warranties of the Seller contained in Section 3 shall be true and correct in all material respects (other than the representations and warranties set forth in Sections 3.1 and 3.2 which shall be true and correct in all respects) on and as of the date hereof and on the Closing Date, and

(b) The Seller has performed all of its obligations contained in this Agreement (to be performed prior to the Closing) in all material respects.
 
5. COVENANTS

5.1 Notification. Each party to this Agreement will notify the other party as soon as reasonably practicable (but in any event prior to the Closing Date) in the event it comes to such party’s attention that any of such party’s representations or warranties set out in this Agreement has ceased to be true and accurate in any material respect or there has been any breach by such party of any of its agreements contained in this Agreement or any failure by such party to comply with any of its obligations contained in this Agreement.

5.2 Price Adjustment; Return of Purchase Price.

(a) If within 1 year of the Closing Date, (i) a Take-Private Transaction is consummated, (ii) the Take-Private Per Share Consideration is greater than the Per Share Consideration and (iii) the Purchaser is a member of the consortium acquiring control of the Issuer in the Take-Private Transaction, the Purchaser shall deliver, or cause to be delivered, within 7 Business Days after the consummation of the Take-Private Transaction, a wire transfer of immediately available funds into an account designated by the Seller in an amount (the “Make-whole Payment”) equal to the product of (A) number of Shares multiplied by (B) the result of (1) the Take-Private Per Share Consideration minus (2) the Per Share Consideration.

(b) If within 1 year of the Closing Date, (i) a Take-Private Transaction is consummated, (ii) the Take-Private Per Share Consideration is greater than the Per Share Consideration and (iii) the Purchaser is not a member of the consortium acquiring control of the Issuer in the Take-Private Transaction solely due to the Purchaser’s own decision or election not to participate in the Take-Private Transaction without the Seller’s written consent, the Purchaser shall deliver, or cause to be delivered, within 7 Business Days after the consummation of the Take-Private Transaction, a wire transfer of immediately available
 
 
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funds into an account designated by the Seller the Make-whole Payment as calculated in accordance with Section 5.2(a) above.

(c) If within 1 year of the Closing Date, (i) a Take-Private Transaction by a consortium including the Purchaser and the Seller is not consummated and (ii) such non-consummation is solely caused by the Seller failing to vote in favor of such Take-Private Transaction at the shareholders meeting called for the purposes of approving such transaction, the Seller shall deliver (in exchange for the delivery by the Purchaser to the Seller of the Shares, free and clear of all Liens), within 7 Business Days after the one-year anniversary of the Closing Date, by a wire transfer of immediately available funds into an account designated by the Purchaser, an amount equal to the Purchase Price.

5.3 Conversion to ADS. From and after the Consortium Agreement is terminated with respect to the Purchaser, at the request of the Purchaser, the Seller shall use its reasonable best efforts to cause the Issuer to cause, and cooperate with, the Depositary (as defined in the Deposit Agreement) to establish procedures enabling the deposit of the Shares with the Depositary in order to enable the Purchaser to hold its ownership interests in the Shares in the form of ADSs in accordance with Section 3 of the Deposit Agreement.

5.4 Indemnification. The Seller shall keep the Purchaser indemnified against any losses, liabilities, costs, claims, actions and demands (including any properly incurred expenses arising in connection therewith) which the Purchaser may incur, or which may be made against the Purchaser as a result of or in relation to any breach by the Seller of this Agreement or any misrepresentation in or breach of any of the Seller’s representations and warranties and the Seller shall reimburse the Purchaser for all properly incurred costs, charges and expenses which the Purchaser may pay or incur in connection with investigating, disputing or defending any such loss, liability, action or claim; provided that the representations and warranties of the Seller shall survive the Closing for 12 months.

5.5 SEC Filings. Each Party agrees, confirms and undertakes that promptly upon the signing of this Agreement and in any event within the time required by applicable law, such Party shall file a Form 13D to announce the entry into this Agreement.

5.6 Dividends. The Parties agree that any Post-Closing Dividends are for the account of the Purchaser. If any Post-Closing Dividend is paid to the Seller, the Seller shall pay (within 7 Business Days of the receipt of the Post-Closing Dividend by the Seller) such Post-Closing Dividend to the Purchaser by a wire transfer of immediately available funds into an account designated by the Purchaser; provided that at the time of such transfer of the Post-Closing Dividend from the Seller to the Purchaser, the Purchaser shall have paid the Purchase Price in full (together with interest, if any, accrued thereon in accordance with Section 5.7).

5.7 Interest. Starting on the day after the Closing Date, for every calendar day after the Closing Date, simple interest will accrue at a rate equal to 5% per annum in excess of the prime rate published by Citibank N.A. from time to time, calculated based on a 360-day year on any amounts required to be paid under this Agreement by the Purchaser to the Seller at the Closing, but not actually paid by the Purchaser to the Seller on the Closing Date.

5.8 Merger Price. The Purchaser agrees that it shall not, and shall cause its affiliates and any consortium of which it or any of its affiliates is a member not to, enter into any definitive agreement with the Issuer in connection with any Take-Private Transaction in
 
 
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which the Take-Private Per Share Consideration is below the Per Share Consideration, nor consummate any such Take-Private Per Share Consideration.

6. MISCELLANEOUS

6.1 Certain Definitions. For purposes of this Agreement, the following terms shall have the meanings specified in this Section 6.1:

ADS” means the American Depositary Shares of the Issuer, each representing two Class A Ordinary Shares.

ADS/Share Ratio” means such portion of ADSs that is equivalent to one Class A Ordinary Share if one ADS does not represent one Class A Ordinary Share, which for the avoidance of doubt is ½ as of the date hereof.

Affiliated Entities” means all companies listed on Exhibit 8.1 to the Form 20-F for the fiscal year ended December 31, 2013 filed with the SEC on April 29, 2014, and any other person (other than a natural person) (i) that is directly or indirectly controlled by the Issuer or (ii) whose assets, or portions thereof, are consolidated with the net earnings of the Issuer and are recorded on the books of the Issuer for financial reporting purposes in accordance with US GAAP.

Business Day” means any day except any Saturday, any Sunday, any day that is a federal legal holiday in the United States of America, a public holiday in the People’s Republic of China, Hong Kong, or the Cayman Islands, or any day on which banking institutions in the State of New York, the People’s Republic of China, Hong Kong, or the Cayman Islands are authorized or required by law or other governmental action to close.

Class A Ordinary Shares” means ordinary shares, US$0.01 par value, of the Issuer.

Class B Ordinary Shares” means ordinary shares, US$0.01 par value, of the Issuer.

 “Consortium Agreement” means the Consortium Agreement, dated as of January 27, 2014, by and between Shanda Interactive Entertainment Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands and Primavera Capital (Cayman) Fund I L.P., a limited partnership organized under the laws of the Cayman Islands, to which several entities joined as party after the signing date thereof.

Deposit Agreement” means the Deposit Agreement, dated as of September 24, 2009 by and among (i) the Issuer, (ii) JPMorgan Chase Bank, N.A. and (iii) all holders and beneficial owners of ADSs issued thereunder.

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

Issuer” means Shanda Games Limited, a Cayman Islands exempted company.

knowledge of” means, with respect to any person, the actual knowledge and constructive knowledge of such person.
 
 
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Material Adverse Effect” means a material adverse change in the business, properties, condition, financial or otherwise, or in the earnings, business affairs or prospects of the Issuer and the Affiliated Entities taken as a whole, whether or not arising in the ordinary course of business.

Organizational Documents” means, with respect to any person, the memorandum of association, articles of association, articles of incorporation, certificate of incorporation, bylaws and any charter, partnership agreements, joint venture agreements or other organizational documents of such entity and any amendments thereto.

Per Share Consideration” means US$3.45.

Post-Closing Dividend” means any dividend with respect to the Shares for which the record date is on or after the date of the Closing Date.

Purchase Price” means the aggregate amount equal to the Per Share Consideration multiplied by the number of Shares.

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

Take-Private Per Share Consideration” means the consideration paid per ADS multiplied by the ADS/Share Ratio in a Take-Private Transaction.

Take-Private Transaction” means an acquisition transaction pursuant to which the ADSs (and the underlying Class A Ordinary Shares) would be delisted from the NASDAQ Stock Market and deregistered under the Exchange Act.

6.2 Termination. This Agreement may be terminated prior to the Closing as follows:

(a) at the election of the Seller on or after September 30, 2014 (the “Long Stop Date”), if the Closing shall not have occurred by the close of business on such date as a direct result of the breach by the Purchaser of its obligations hereunder; provided that the Purchaser shall remain liable for its breach after such termination;

(b) at the election of the Purchaser on or after the Long Stop Date, if the Closing shall not have occurred by the close of business on such date as a direct result of the breach by the Seller of its obligations hereunder; provided that the Seller shall remain liable for its breach after such termination; or

(c) by mutual written consent of the Seller and Purchaser.

6.3 Further Assurances. The Seller and the Purchaser agree to execute and deliver such other documents or agreements and to take such other action as may be necessary or desirable for the implementation of this Agreement and the consummation of the transactions contemplated hereby.

6.4 Complete Agreement; Amendments; Waivers. This Agreement constitutes the complete agreement between the parties with respect to the subject matter hereof, supercedes any previous agreement or understanding between them relating hereto and may not be
 
 
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modified, altered or amended except as provided herein. This Agreement can be amended, supplemented or changed, and any provision hereof can be waived, only by written instrument making specific reference to this Agreement signed by the party against whom enforcement of any such amendment, supplement, modification or waiver is sought. No action taken pursuant to this Agreement shall be deemed to constitute a waiver by the party taking such action or compliance with any representation, warranty, covenant or agreement contained herein. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law.

6.5 Expenses. Each party hereto shall bear its own expenses incurred in connection with the negotiation and execution of this Agreement and each other document and instrument contemplated by this Agreement and the consummation of the transactions contemplated hereby and thereby.

6.6 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic and legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions be consummated as originally contemplated to the fullest extent possible.

6.7 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and permitted assigns. Nothing in this Agreement shall create or be deemed to create any third party beneficiary rights in any person or entity not a party to this Agreement. No assignment of this Agreement or of any rights or obligations hereunder may be made by any party hereto (by operation of law or otherwise) without the prior written consent of the other parties hereto and any attempted assignment without the required consent shall be void; provided that, notwithstanding the foregoing, (i) Orient Finance Holdings (Hong Kong) Limited may assign to an affiliate formed under the laws of the Cayman Islands, the British Virgin Islands or Hong Kong all of its rights, remedies, obligations or liabilities arising hereunder or by reason hereof, in which case such assignee shall execute and deliver to the Seller an agreement to be bound by the terms of this Agreement and (ii) in connection with any assignment to such affiliate referenced in clause (i), Orient Finance Holdings (Hong Kong) Limited hereby fully and unconditionally guarantees to the Seller, as primary obligor and not merely as a surety, the prompt and full discharge of all of the obligations of such affiliate as the “Purchaser” under this Agreement.

6.8 Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.
 
 
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6.9 Dispute Resolution.

(a) Subject to Section 6.9(b), any disputes, actions and proceedings against any Party or arising out of or in any way relating to this Agreement shall be submitted to the Hong Kong International Arbitration Centre (“HKIAC”) and resolved in accordance with the Arbitration Rules of HKIAC in force at the relevant time and as may be amended by this Section 6.9. The place of arbitration shall be Hong Kong. The official language of the arbitration shall be English and the tribunal shall consist of three arbitrators (each, an “Arbitrator”). The claimant(s), irrespective of number, shall nominate jointly one Arbitrator; the respondent(s), irrespective of number, shall nominate jointly one Arbitrator; and a third Arbitrator will be nominated jointly by the first two Arbitrators and shall serve as chairman of the Tribunal. In the event the claimant(s) or respondent(s) or the first two Arbitrators shall fail to nominate or agree the joint nomination of an Arbitrator or the third Arbitrator within the time limits specified by the Rules, such Arbitrator shall be appointed promptly by the HKIAC. The Tribunal shall have no authority to award punitive or other punitive-type damages. The award of the arbitration tribunal shall be final and binding upon the disputing parties. Any party to an award may apply to any court of competent jurisdiction for enforcement of such award and, for purposes of the enforcement of such award, the Parties irrevocably and unconditionally submit to the jurisdiction of any court of competent jurisdiction and waive any defenses to such enforcement based on lack of personal jurisdiction or inconvenient forum.

(b) Notwithstanding the foregoing, the Parties hereby consent to and agree that in addition to any recourse to arbitration as set out in this Section 6.9, any Party may, to the extent permitted under the laws of the jurisdiction where application is made, seek an interim injunction from a court or other authority with competent jurisdiction and, notwithstanding that this Agreement is governed by the laws of the State of New York, a court or authority hearing an application for injunctive relief may apply the procedural law of the jurisdiction where the court or other authority is located in determining whether to grant the interim injunction. For the avoidance of doubt, this Section 6.9(b) is only applicable to the seeking of interim injunctions and does not restrict the application of Section 6.9(a) in any way.

(c) Each Party acknowledges and agrees that the other Parties would be irreparably injured by a breach of this Agreement by it and that money damages alone are an inadequate remedy for actual or threatened breach of this Agreement. Accordingly, each Party shall be entitled to bring an action for specific performance and/or injunctive or other equitable relief (without posting a bond or other security) to enforce or prevent any violations of any provision of this Agreement, in addition to all other rights and remedies available at law or in equity to such Party, including the right to claim money damages for breach of any provision of this Agreement.

6.10 Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given when delivered personally, by international courier or by e-mail (with confirmation of receipt) to the parties at the following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision):

If to the Seller, to:
 
 
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Shanda SDG Investment Limited
8 Stevens Road
Singapore 257819
Attention: Ms. Han Li
 
 
With a copy to (which shall not constitute notice):

Wilson Sonsini Goodrich & Rosati
Unit 1001, 10/F, Henley Building
5 Queen’s Road, Central
Hong Kong
Attention: Zhan Chen

If to the Purchaser, to:

Orient Finance Holdings (Hong Kong) Limited
28/F-29/F, 100 Queen’s Road Central,
Central, Hong Kong
Attention: Ning Guan

6.11 Survival. All of the covenants and agreements of the parties in this Agreement shall survive the Closing.

6.12 Section and Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

6.13 Counterparts. This Agreement may be executed and delivered (including by facsimile transmission, e-mail of .pdf version or delivery of photographic copy via text message or WeChat) in one or more counterparts, all of which when executed and delivered shall be considered one and the same agreement.

[signature page follows]

 
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IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the day and year first above written.
 
 
 
SELLER:
 
SHANDA SDG INVESTMENT LIMITED
 
         
         
         
  By: /s/ Tianqiao Chen  
    Name: Tianqiao Chen  
    Title: Director  
 
 
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IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the day and year first above written.

 
 
PURCHASER:
 
 
ORIENT FINANCE HOLDINGS (HONG KONG) LIMITED
 
           
     
           
  By: /s/ Ning Guan  
    Name: Ning Guan  
    Title: Chief Executive Officer  


 


Exhibit 7.10

SHARE PURCHASE AGREEMENT

SHARE PURCHASE AGREEMENT, dated as of September 1, 2014 (this “Agreement”), by and between Shanda SDG Investment Limited (the “Seller”), a British Virgin Islands corporation and a direct wholly-owned subsidiary of Shanda Interactive Entertainment Limited, a Caymans Islands company, and Shanghai Buyout Fund L.P. , a limited partnership formed under the laws of the People’s Republic of China (together with any permitted transferee or assignee thereof under this Agreement, the “Purchaser”, together with the Seller, each a “Party” and collectively, the “Parties”). Capitalized terms not otherwise defined shall have the meaning ascribed in Section 6.1 hereof.

W I T N E S S E T H :

WHEREAS, the Seller is the owner of 48,152,848 Class B Ordinary Shares of the Issuer (the “Class B Shares”) and intends to convert such shares into the same number of Class A Ordinary Shares of the Issuer (as converted, the “Shares”);

WHEREAS, the Seller intends to sell to the Purchaser, and the Purchaser intends to purchase from the Seller, all of the Seller’s right, title and interest in and pertaining to the Shares at the Purchase Price, all upon the terms and conditions hereinafter set forth; and

WHEREAS, concurrently with the entry into this Agreement, the Purchaser is entering into a share purchase agreement with each of Primavera Capital (Cayman) Fund I L.P. and Perfect World Co., Ltd. to purchase additional shares of the Issuer.

NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained, it is agreed as follows:
 
1. PURCHASE AND SALE

1.1 Purchase and Sale. Subject to the terms and conditions set forth in this Agreement, the Purchaser agrees to purchase from the Seller, and the Seller agrees to sell, transfer and assign to the Purchaser, on the Closing Date, all of the Seller’s right, interest and title in the Shares (including all dividends, distributions and other benefits attaching to the Shares) for the Purchase Price. On the Closing Date, the Purchaser shall pay the Purchase Price to the Seller by a wire transfer of immediately available funds in U.S. dollars into an account designated by the Seller.

1.2 The Closing.

(a) The closing of the purchase and sale of the Shares and the other transactions contemplated hereby (the “Closing”) shall take place no later than the fifteenth (15th) Business Day immediately after the date of this Agreement, or such other date as may be agreed by both Parties in writing (the “Closing Date”).

(b) At the Closing:
 
 
 

 

 
(i) the Seller shall deliver, or cause to be delivered, to the Purchaser:

(A) the original stock certificates representing the Shares, if any;

(B) a share transfer form duly executed by the Seller in respect of the Shares in favor of the Purchaser;

(C) a certified copy of the updated register of members of the Issuer reflecting the Purchaser as the sole holder of the Shares;

(D) a new share certificate in the name of the Purchaser in respect of the Shares;

 (E) all such other documents and instruments, if any, that are mutually determined by the Seller and the Purchaser to be necessary to effectuate the transactions contemplated by this Agreement; and
 
(ii) the Purchaser shall deliver, or cause to be delivered, to the Seller

 (A) a wire transfer of immediately available funds into an account designated by the Seller in the amount of the Purchase Price; and

(B) all such other documents and instruments, if any, that are mutually determined by such Seller and the Purchaser to be necessary to effectuate the transactions contemplated by this Agreement.

(c) Unless otherwise agreed by the Seller and the Purchaser, all actions at Closing are inter-dependent and will be deemed to take place simultaneously and no delivery or payment will be deemed to have been made until all deliveries and payments under this Agreement due to be made at Closing have been made.

2. PURCHASER’S REPRESENTATIONS AND WARRANTIES

The Purchaser makes the following representations and warranties to the Seller, each and all of which shall be true and correct as of the date of this Agreement and the Closing Date:

2.1 Authority; Binding Effect. The Purchaser has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly and validly executed and delivered by the Purchaser and (assuming the due execution and delivery thereof by the Seller) constitutes the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms.

2.2 No Conflicts. Except as would not have a material impact on the Purchaser’s ability to consummate the transactions contemplated by this Agreement, the execution and delivery of this Agreement and the consummation of the transactions contemplated herein and compliance by the Purchaser with its obligations hereunder do not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of,
 
 
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or default under, or result in the creation or imposition of any tax, lien, charge or encumbrance upon any property or assets of the Purchaser pursuant to any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, license, lease or other agreement or instrument to which the Purchaser is a party or by which the Purchaser is bound, or to which any of the property or assets of the Purchaser is subject, nor does such action result in any violation of the provisions of Organizational Documents of the Purchaser or any applicable treaty, law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court, domestic or foreign, having jurisdiction over the Purchaser or any of its property or assets.

2.3 No Consents. No filing with, or consent, approval, authorization, order, registration, qualification or decree of, any court or governmental authority or agency, of any country or nation, is necessary or required for entry into this Agreement by the Purchaser or the performance by the Purchaser of its obligations hereunder.

2.4 Purchase for Investment. The Purchaser is acquiring the Shares for investment for its own account and not with a view toward any resale or distribution thereof except in compliance with the Securities Act. The Purchaser does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to any person with respect to the Shares. The Purchaser hereby acknowledges that the Shares have not been registered pursuant to the Securities Act and may not be transferred in the absence of such registration thereunder or an exemption therefrom.

2.5 Purchaser Status. The Purchaser is either (i) not a U.S. Person (as defined in Rule 902 of Regulation S promulgated under the Securities Act) or (ii) an “accredited investor” within the meaning in Rule 501 of Regulation D promulgated under the Securities Act. Such Investor has the knowledge, sophistication and experience necessary to make an investment decision like that involved in the purchase of the Shares and can bear the economic risk of its investment in the Shares.

2.6 Access. The Purchaser has and had access to such reports, statements and announcements publicly released or published by the Issuer as shall have been reasonably necessary for the Purchaser to be capable of evaluating the merits and risks of the transactions contemplated by this Agreement. The Purchaser has such knowledge and experience in financial and business matters as to enable the Purchaser to make an informed decision with respect to the Purchaser’s purchase of the Shares. The Purchaser is a sophisticated investor and has independently evaluated the merits of its decision to purchase the Shares pursuant to this Agreement. In connection with such purchase, the Purchaser is not relying on the Seller or any of its affiliates or representatives (including any act, representation or warranty by the Seller or any of its affiliates or representatives) in any respect in making its decision to make such purchase except for such representations and warranties of the Seller made under Section 3 below.

3. SELLER’S REPRESENTATIONS AND WARRANTIES

The Seller makes the following representations and warranties to the Purchaser, each and all of which shall be true and correct as of the date of this Agreement and the Closing Date:
 
 
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3.1 Authority; Binding Effect. The Seller has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly and validly executed and delivered by the Seller and (assuming the due execution and delivery thereof by the Purchaser) constitutes the legal, valid and binding obligations of the Seller, enforceable against the Seller in accordance with its terms.

3.2 Ownership and Transfer. The Seller has valid title to the Class B Shares, and will have valid title to the Shares prior to the Closing, in each case free and clear of all security interests, claims, liens, equities or other encumbrances (collectively, “Liens”). Upon transfer, assignment and delivery of the Shares and payment therefor in accordance with the terms of this Agreement, the Purchaser will acquire good and marketable title to the Shares, free and clear of any and all Liens.

3.3 Litigation. There is no legal proceeding pending or, to the knowledge of the Seller, threatened, against the Seller or to which the Seller is otherwise a party relating to this Agreement or the transactions contemplated hereby.

3.4 No Conflicts.  Except as disclosed in the SEC Documents, the execution and delivery of this Agreement and the sale and delivery of the Shares by the Seller and the consummation of the transactions contemplated herein and compliance by the Seller with its obligations hereunder do not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default under, or result in the creation or imposition of any tax, lien, charge or encumbrance upon the Shares or any property or assets of the Seller pursuant to any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, license, lease or any other agreement or instrument to which the Seller is a party or by which the Seller is bound, or to which any of the property or assets of the Seller is subject, nor does such action result in any violation of the provisions of Organizational Documents of the Seller or any applicable treaty, law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court, domestic or foreign, having jurisdiction over the Seller or any of its property or assets.
 
3.5 No Consents. No filing with, or consent, approval, authorization, order, registration, qualification or decree of, any court or governmental authority or agency, of any country or nation, is necessary or required for the performance by the Seller of its obligations hereunder, or in connection with the sale and delivery of the Shares hereunder or the consummation of the transactions contemplated by this Agreement.

3.6 SEC Documents. To the knowledge of the Seller, the Issuer has filed with the Securities and Exchange Commission of the United States of America (the “SEC”) all forms, reports, schedules, statements, exhibits and other documents required to be filed under the Exchange Act or the Securities Act (all forms, reports, schedules, statements, exhibits and other documents filed or furnished by the Issuer with the SEC, collectively, the “SEC Documents”). To the knowledge of the Seller, as of its filing date, or, if amended, as of the date of the last such amendment, each SEC Document did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.

3.7 Absence of Certain Developments. To the best knowledge of the Seller, since December 31, 2013 there has been no Material Adverse Effect that is required to be, but has
 
 
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not been, disclosed in the SEC Documents, other than adverse effects relating to changes in general economic or political conditions or changes generally affecting the industry in which the Issuer operates.

4. CONDITIONS PRECEDENT

4.1 The obligations of the Seller under Sections 1.1 and 1.2(b)(i) hereof are subject to the following conditions:

(a) All of the representations and warranties of the Purchaser contained in Section 2 shall be true and correct in all material respects (other than the Purchaser’s representations and warranties set forth in Section 2.1 which shall be true and correct in all respects) on and as of the date hereof and on the Closing Date, and

(b) The Purchaser has performed all of its obligations contained in this Agreement (to be performed prior to the Closing) in all material respects.

4.2 The obligations of the Purchaser under Sections 1.1 and 1.2(b)(ii) hereof are subject to the following conditions:

(a) All of the representations and warranties of the Seller contained in Section 3 shall be true and correct in all material respects (other than the representations and warranties set forth in Sections 3.1 and 3.2 which shall be true and correct in all respects) on and as of the date hereof and on the Closing Date, and

(b) The Seller has performed all of its obligations contained in this Agreement (to be performed prior to the Closing) in all material respects.
 
 
5. COVENANTS

5.1 Notification. Each party to this Agreement will notify the other party as soon as reasonably practicable (but in any event prior to the Closing Date) in the event it comes to such party’s attention that any of such party’s representations or warranties set out in this Agreement has ceased to be true and accurate in any material respect or there has been any breach by such party of any of its agreements contained in this Agreement or any failure by such party to comply with any of its obligations contained in this Agreement.

5.2 Price Adjustment; Return of Purchase Price.

(a) If within 1 year of the Closing Date, (i) a Take-Private Transaction is consummated, (ii) the Take-Private Per Share Consideration is greater than the Per Share Consideration and (iii) the Purchaser is a member of the consortium acquiring control of the Issuer in the Take-Private Transaction, the Purchaser shall deliver, or cause to be delivered, within 7 Business Days after the consummation of the Take-Private Transaction, a wire transfer of immediately available funds into an account designated by the Seller in an amount (the “Make-whole Payment”) equal to the product of (A) number of Shares multiplied by (B) the result of (1) the Take-Private Per Share Consideration minus (2) the Per Share Consideration.
 
 
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(b) If within 1 year of the Closing Date, (i) a Take-Private Transaction is consummated, (ii) the Take-Private Per Share Consideration is greater than the Per Share Consideration and (iii) the Purchaser is not a member of the consortium acquiring control of the Issuer in the Take-Private Transaction solely due to the Purchaser’s own decision or election not to participate in the Take-Private Transaction without the Seller’s written consent, the Purchaser shall deliver, or cause to be delivered, within 7 Business Days after the consummation of the Take-Private Transaction, a wire transfer of immediately available funds into an account designated by the Seller the Make-whole Payment as calculated in accordance with Section 5.2(a) above.

(c) If within 1 year of the Closing Date, (i) a Take-Private Transaction by a consortium including the Purchaser and the Seller is not consummated and (ii) such non-consummation is solely caused by the Seller failing to vote in favor of such Take-Private Transaction at the shareholders meeting called for the purposes of approving such transaction, the Seller shall deliver (in exchange for the delivery by the Purchaser to the Seller of the Shares, free and clear of all Liens), within 7 Business Days after the one-year anniversary of the Closing Date, by a wire transfer of immediately available funds into an account designated by the Purchaser, an amount equal to the Purchase Price.

5.3 Conversion to ADS. From and after the Consortium Agreement is terminated with respect to the Purchaser, at the request of the Purchaser, the Seller shall use its reasonable best efforts to cause the Issuer to cause, and cooperate with, the Depositary (as defined in the Deposit Agreement) to establish procedures enabling the deposit of the Shares with the Depositary in order to enable the Purchaser to hold its ownership interests in the Shares in the form of ADSs in accordance with Section 3 of the Deposit Agreement.

5.4 Indemnification. The Seller shall keep the Purchaser indemnified against any losses, liabilities, costs, claims, actions and demands (including any properly incurred expenses arising in connection therewith) which the Purchaser may incur, or which may be made against the Purchaser as a result of or in relation to any breach by the Seller of this Agreement or any misrepresentation in or breach of any of the Seller’s representations and warranties and the Seller shall reimburse the Purchaser for all properly incurred costs, charges and expenses which the Purchaser may pay or incur in connection with investigating, disputing or defending any such loss, liability, action or claim; provided that the representations and warranties of the Seller shall survive the Closing for 12 months.

5.5 SEC Filings. Each Party agrees, confirms and undertakes that promptly upon the signing of this Agreement and in any event within the time required by applicable law, such Party shall file a Form 13D to announce the entry into this Agreement.

5.6 Dividends. The Parties agree that any Post-Closing Dividends are for the account of the Purchaser. If any Post-Closing Dividend is paid to the Seller, the Seller shall pay (within 7 Business Days of the receipt of the Post-Closing Dividend by the Seller) such Post-Closing Dividend to the Purchaser by a wire transfer of immediately available funds into an account designated by the Purchaser; provided that at the time of such transfer of the Post-Closing Dividend from the Seller to the Purchaser, the Purchaser shall have paid the Purchase Price in full (together with interest, if any, accrued thereon in accordance with Section 5.7).

5.7 Interest. Starting on the day after the Closing Date, for every calendar day after the Closing Date, simple interest will accrue at a rate equal to 5% per annum in excess of the
 
 
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prime rate published by Citibank N.A. from time to time, calculated based on a 360-day year on any amounts required to be paid under this Agreement by the Purchaser to the Seller at the Closing, but not actually paid by the Purchaser to the Seller on the Closing Date.

5.8 Merger Price. The Purchaser agrees that it shall not, and shall cause its affiliates and any consortium of which it or any of its affiliates is a member not to, enter into any definitive agreement with the Issuer in connection with any Take-Private Transaction in which the Take-Private Per Share Consideration is below the Per Share Consideration, nor consummate any such Take-Private Per Share Consideration.

5.9 Consortium. The Seller shall use its reasonable best efforts to cause the Purchaser to become a member of the consortium under the Consortium Agreement as soon as practically after the Closing.

6. MISCELLANEOUS

6.1 Certain Definitions. For purposes of this Agreement, the following terms shall have the meanings specified in this Section 6.1:

ADS” means the American Depositary Shares of the Issuer, each representing two Class A Ordinary Shares.

ADS/Share Ratio” means such portion of ADSs that is equivalent to one Class A Ordinary Share if one ADS does not represent one Class A Ordinary Share, which for the avoidance of doubt is ½ as of the date hereof.
 
Affiliated Entities” means all companies listed on Exhibit 8.1 to the Form 20-F for the fiscal year ended December 31, 2013 filed with the SEC on April 29, 2014, and any other person (other than a natural person) (i) that is directly or indirectly controlled by the Issuer or (ii) whose assets, or portions thereof, are consolidated with the net earnings of the Issuer and are recorded on the books of the Issuer for financial reporting purposes in accordance with US GAAP.

Business Day” means any day except any Saturday, any Sunday, any day that is a federal legal holiday in the United States of America, a public holiday in the People’s Republic of China, Hong Kong, or the Cayman Islands, or any day on which banking institutions in the State of New York, the People’s Republic of China, Hong Kong, or the Cayman Islands are authorized or required by law or other governmental action to close.

Class A Ordinary Shares” means ordinary shares, US$0.01 par value, of the Issuer.

Class B Ordinary Shares” means ordinary shares, US$0.01 par value, of the Issuer.

 “Consortium Agreement” means the Consortium Agreement, dated as of January 27, 2014, by and between Shanda Interactive Entertainment Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands and Primavera Capital (Cayman) Fund I L.P., a limited partnership organized under the laws of the Cayman Islands, to which several entities joined as party after the signing date thereof.
 
 
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Deposit Agreement” means the Deposit Agreement, dated as of September 24, 2009 by and among (i) the Issuer, (ii) JPMorgan Chase Bank, N.A. and (iii) all holders and beneficial owners of ADSs issued thereunder.

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

Issuer” means Shanda Games Limited, a Cayman Islands exempted company.

knowledge of” means, with respect to any person, the actual knowledge and constructive knowledge of such person.

Material Adverse Effect” means a material adverse change in the business, properties, condition, financial or otherwise, or in the earnings, business affairs or prospects of the Issuer and the Affiliated Entities taken as a whole, whether or not arising in the ordinary course of business.

Organizational Documents” means, with respect to any person, the memorandum of association, articles of association, articles of incorporation, certificate of incorporation, bylaws and any charter, partnership agreements, joint venture agreements or other organizational documents of such entity and any amendments thereto.

Per Share Consideration” means US$3.45.

Post-Closing Dividend” means any dividend with respect to the Shares for which the record date is on or after the date of the Closing Date.

Purchase Price” means the aggregate amount equal to the Per Share Consideration multiplied by the number of Shares.

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

Take-Private Per Share Consideration” means the consideration paid per ADS multiplied by the ADS/Share Ratio in a Take-Private Transaction.

Take-Private Transaction” means an acquisition transaction pursuant to which the ADSs (and the underlying Class A Ordinary Shares) would be delisted from the NASDAQ Stock Market and deregistered under the Exchange Act.

6.2 Termination. This Agreement may be terminated prior to the Closing as follows:

(a) at the election of the Seller on or after November 30, 2014 (the “Long Stop Date”), if the Closing shall not have occurred by the close of business on such date as a direct result of the breach by the Purchaser of its obligations hereunder; provided that the Purchaser shall remain liable for its breach after such termination;

(b) at the election of the Purchaser on or after the Long Stop Date, if the Closing shall not have occurred by the close of business on such date as a direct result of the breach by the
 
 
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Seller of its obligations hereunder; provided that the Seller shall remain liable for its breach after such termination; or

(c) by mutual written consent of the Seller and Purchaser.

6.3 Further Assurances. The Seller and the Purchaser agree to execute and deliver such other documents or agreements and to take such other action as may be necessary or desirable for the implementation of this Agreement and the consummation of the transactions contemplated hereby.

6.4 Complete Agreement; Amendments; Waivers. This Agreement constitutes the complete agreement between the parties with respect to the subject matter hereof, supercedes any previous agreement or understanding between them relating hereto and may not be modified, altered or amended except as provided herein. This Agreement can be amended, supplemented or changed, and any provision hereof can be waived, only by written instrument making specific reference to this Agreement signed by the party against whom enforcement of any such amendment, supplement, modification or waiver is sought. No action taken pursuant to this Agreement shall be deemed to constitute a waiver by the party taking such action or compliance with any representation, warranty, covenant or agreement contained herein. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law.

6.5 Expenses. Each party hereto shall bear its own expenses incurred in connection with the negotiation and execution of this Agreement and each other document and instrument contemplated by this Agreement and the consummation of the transactions contemplated hereby and thereby.

6.6 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic and legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions be consummated as originally contemplated to the fullest extent possible.

6.7 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and permitted assigns. Nothing in this Agreement shall create or be deemed to create any third party beneficiary rights in any person or entity not a party to this Agreement. No assignment of this Agreement or of any rights or obligations hereunder may be made by any party hereto (by operation of law or otherwise) without the prior written consent of the other parties hereto and any attempted assignment without the required consent shall be void; provided that, notwithstanding the
 
 
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foregoing, (i) Shanghai Buyout Fund L.P. may assign to an affiliate formed under the laws of the Cayman Islands, the British Virgin Islands or Hong Kong all of its rights, remedies, obligations or liabilities arising hereunder or by reason hereof, in which case such assignee shall execute and deliver to the Seller an agreement to be bound by the terms of this Agreement and (ii) in connection with any assignment to such affiliate referenced in clause (i), Shanghai Buyout Fund L.P. hereby fully and unconditionally guarantees to the Seller, as primary obligor and not merely as a surety, the prompt and full discharge of all of the obligations of such affiliate as the “Purchaser” under this Agreement.

6.8 Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

6.9 Dispute Resolution.

(a) Subject to Section 6.9(b), any disputes, actions and proceedings against any Party or arising out of or in any way relating to this Agreement shall be submitted to the Hong Kong International Arbitration Centre (“HKIAC”) and resolved in accordance with the Arbitration Rules of HKIAC in force at the relevant time and as may be amended by this Section 6.9. The place of arbitration shall be Hong Kong. The official language of the arbitration shall be English and the tribunal shall consist of three arbitrators (each, an “Arbitrator”). The claimant(s), irrespective of number, shall nominate jointly one Arbitrator; the respondent(s), irrespective of number, shall nominate jointly one Arbitrator; and a third Arbitrator will be nominated jointly by the first two Arbitrators and shall serve as chairman of the Tribunal. In the event the claimant(s) or respondent(s) or the first two Arbitrators shall fail to nominate or agree the joint nomination of an Arbitrator or the third Arbitrator within the time limits specified by the Rules, such Arbitrator shall be appointed promptly by the HKIAC. The Tribunal shall have no authority to award punitive or other punitive-type damages. The award of the arbitration tribunal shall be final and binding upon the disputing parties. Any party to an award may apply to any court of competent jurisdiction for enforcement of such award and, for purposes of the enforcement of such award, the Parties irrevocably and unconditionally submit to the jurisdiction of any court of competent jurisdiction and waive any defenses to such enforcement based on lack of personal jurisdiction or inconvenient forum.

(b) Notwithstanding the foregoing, the Parties hereby consent to and agree that in addition to any recourse to arbitration as set out in this Section 6.9, any Party may, to the extent permitted under the laws of the jurisdiction where application is made, seek an interim injunction from a court or other authority with competent jurisdiction and, notwithstanding that this Agreement is governed by the laws of the State of New York, a court or authority hearing an application for injunctive relief may apply the procedural law of the jurisdiction where the court or other authority is located in determining whether to grant the interim injunction. For the avoidance of doubt, this Section 6.9(b) is only applicable to the seeking of interim injunctions and does not restrict the application of Section 6.9(a) in any way.

(c) Each Party acknowledges and agrees that the other Parties would be irreparably injured by a breach of this Agreement by it and that money damages alone are an inadequate remedy for actual or threatened breach of this Agreement. Accordingly, each Party shall be entitled to bring an action for specific performance and/or injunctive or other equitable relief
 
 
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(without posting a bond or other security) to enforce or prevent any violations of any provision of this Agreement, in addition to all other rights and remedies available at law or in equity to such Party, including the right to claim money damages for breach of any provision of this Agreement.

6.10 Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given when delivered personally, by international courier or by e-mail (with confirmation of receipt) to the parties at the following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision):

If to the Seller, to:

Shanda SDG Investment Limited
8 Stevens Road
Singapore 257819
Attention: Ms. Han Li
 
 
With a copy to (which shall not constitute notice):

Wilson Sonsini Goodrich & Rosati
Unit 1001, 10/F, Henley Building
5 Queen’s Road, Central
Hong Kong
Attention: Zhan Chen

If to the Purchaser, to:

Shanghai Buyout Fund L.P.
Room 2802, No. 689 Guangdong Road,
Huangpu District,
Shanghai, China
Attention: Jing Liu

6.11 Survival. All of the covenants and agreements of the parties in this Agreement shall survive the Closing.

6.12 Section and Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

6.13 Counterparts. This Agreement may be executed and delivered (including by facsimile transmission, e-mail of .pdf version or delivery of photographic copy via text message or WeChat) in one or more counterparts, all of which when executed and delivered shall be considered one and the same agreement.

[signature page follows]

 
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IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the day and year first above written.
 
 
 
SELLER:
 
SHANDA SDG INVESTMENTLIMITED
 
         
         
         
  By: /s/ Tianqiao Chen  
    Name: Tianqiao Chen  
    Title: Director  
 
 
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IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the day and year first above written.


 
PURCHASER:
 
SHANGHAI BUYOUT FUND L.P.
 
 
           
 
BY: HAITONG M&A CAPITAL MANAGEMENT (SHANGHAI) CO., LTD. , its general partner
 
           
           
     
           
  By: /s/ Yanhua Yang  
    Name: Yanhua Yang  
    Title: Chairman of the Board  
 


 


Exhibit 7.11
 

SHARE PURCHASE AGREEMENT

SHARE PURCHASE AGREEMENT, dated as of September 1, 2014 (this “Agreement”), by and between Shanda SDG Investment Limited (the “Seller”), a British Virgin Islands corporation and a direct wholly-owned subsidiary of Shanda Interactive Entertainment Limited, a Caymans Islands company, and Ningxia Zhongyincashmere International Group Co., Ltd., a company formed under the laws of People’s Republic of China, (together with any permitted transferee or assignee thereof under this Agreement, the “Purchaser”, together with the Seller, each a “Party” and collectively, the “Parties”). Capitalized terms not otherwise defined shall have the meaning ascribed in Section 6.1 hereof.

W I T N E S S E T H :

WHEREAS, the Seller is the owner of 80,577,828 Class B Ordinary Shares of the Issuer (the “Class B Shares”) and intends to convert such shares into the same number of Class A Ordinary Shares of the Issuer (as converted, the “Shares”); and

WHEREAS, the Seller intends to sell to the Purchaser, and the Purchaser intends to purchase from the Seller, all of the Seller’s right, title and interest in and pertaining to the Shares at the Purchase Price, all upon the terms and conditions hereinafter set forth;

NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained, it is agreed as follows:

 
 
1. PURCHASE AND SALE

1.1 Purchase and Sale. Subject to the terms and conditions set forth in this Agreement, the Purchaser agrees to purchase from the Seller, and the Seller agrees to sell, transfer and assign to the Purchaser, on the Closing Date, all of the Seller’s right, interest and title in the Shares (including all dividends, distributions and other benefits attaching to the Shares) for the Purchase Price. On the Closing Date, the Purchaser shall pay the Purchase Price to the Seller by a wire transfer of immediately available funds in U.S. dollars into an account designated by the Seller.

1.2 The Closing.

(a) The closing of the purchase and sale of the Shares and the other transactions contemplated hereby (the “Closing”) shall take place no later than the fifteenth (15th) Business Day immediately after the date of this Agreement, or such other date as may be agreed by both Parties in writing (the “Closing Date”).

(b) At the Closing:

(i) the Seller shall deliver, or cause to be delivered, to the Purchaser:

(A) the original stock certificates representing the Shares, if any;
 
 
 

 

 
(B) a share transfer form duly executed by the Seller in respect of the Shares in favor of the Purchaser;

(C) a certified copy of the updated register of members of the Issuer reflecting the Purchaser as the sole holder of the Shares;

(D) a new share certificate in the name of the Purchaser in respect of the Shares;

 (E) all such other documents and instruments, if any, that are mutually determined by the Seller and the Purchaser to be necessary to effectuate the transactions contemplated by this Agreement; and
 
(ii) the Purchaser shall deliver, or cause to be delivered, to the Seller

 (A) a wire transfer of immediately available funds into an account designated by the Seller in the amount of the Purchase Price; and

(B) all such other documents and instruments, if any, that are mutually determined by such Seller and the Purchaser to be necessary to effectuate the transactions contemplated by this Agreement.

(c) Unless otherwise agreed by the Seller and the Purchaser, all actions at Closing are inter-dependent and will be deemed to take place simultaneously and no delivery or payment will be deemed to have been made until all deliveries and payments under this Agreement due to be made at Closing have been made.

2. PURCHASER’S REPRESENTATIONS AND WARRANTIES

The Purchaser makes the following representations and warranties to the Seller, each and all of which shall be true and correct as of the date of this Agreement and the Closing Date:

2.1 Authority; Binding Effect. The Purchaser has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly and validly executed and delivered by the Purchaser and (assuming the due execution and delivery thereof by the Seller) constitutes the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms.

2.2 No Conflicts. Except as would not have a material impact on the Purchaser’s ability to consummate the transactions contemplated by this Agreement, the execution and delivery of this Agreement and the consummation of the transactions contemplated herein and compliance by the Purchaser with its obligations hereunder do not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default under, or result in the creation or imposition of any tax, lien, charge or encumbrance upon any property or assets of the Purchaser pursuant to any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, license, lease or other agreement or instrument to which the Purchaser is a party or by which the Purchaser is bound, or to which any of the property or assets of the Purchaser is subject, nor does such
 
 
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action result in any violation of the provisions of Organizational Documents of the Purchaser or any applicable treaty, law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court, domestic or foreign, having jurisdiction over the Purchaser or any of its property or assets.

2.3 No Consents. Except for  (i) the approval of the Ningxia Hui Autonomous  Region Development and Reform Commission, (ii) the approval of the Ministry of Commerce of the People’s Republic of China, and (iii) registrations with relevant local branch of State Administration of Foreign Exchange of the People’s Republic of China in charge of relevant foreign exchange transactions in connection with the payment of the Purchase Price, no filing with, or consent, approval, authorization, order, registration, qualification or decree of, any court or governmental authority or agency, of any country or nation, is necessary or required for entry into this Agreement by the Purchaser or the performance by the Purchaser of its obligations hereunder.

2.4 Purchase for Investment. The Purchaser is acquiring the Shares for investment for its own account and not with a view toward any resale or distribution thereof except in compliance with the Securities Act. The Purchaser does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to any person with respect to the Shares. The Purchaser hereby acknowledges that the Shares have not been registered pursuant to the Securities Act and may not be transferred in the absence of such registration thereunder or an exemption therefrom.

2.5 Purchaser Status. The Purchaser is either (i) not a U.S. Person (as defined in Rule 902 of Regulation S promulgated under the Securities Act) or (ii) an “accredited investor” within the meaning in Rule 501 of Regulation D promulgated under the Securities Act. Such Investor has the knowledge, sophistication and experience necessary to make an investment decision like that involved in the purchase of the Shares and can bear the economic risk of its investment in the Shares.

2.6 Access. The Purchaser has and had access to such reports, statements and announcements publicly released or published by the Issuer as shall have been reasonably necessary for the Purchaser to be capable of evaluating the merits and risks of the transactions contemplated by this Agreement. The Purchaser has such knowledge and experience in financial and business matters as to enable the Purchaser to make an informed decision with respect to the Purchaser’s purchase of the Shares. The Purchaser is a sophisticated investor and has independently evaluated the merits of its decision to purchase the Shares pursuant to this Agreement. In connection with such purchase, the Purchaser is not relying on the Seller or any of its affiliates or representatives (including any act, representation or warranty by the Seller or any of its affiliates or representatives) in any respect in making its decision to make such purchase except for such representations and warranties of the Seller made under Section 3 below.

3. SELLER’S REPRESENTATIONS AND WARRANTIES

The Seller makes the following representations and warranties to the Purchaser, each and all of which shall be true and correct as of the date of this Agreement and the Closing Date:
 
 
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3.1 Authority; Binding Effect. The Seller has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly and validly executed and delivered by the Seller and (assuming the due execution and delivery thereof by the Purchaser) constitutes the legal, valid and binding obligations of the Seller, enforceable against the Seller in accordance with its terms.

3.2 Ownership and Transfer. The Seller has valid title to the Class B Shares, and will have valid title to the Shares prior to the Closing, in each case free and clear of all security interests, claims, liens, equities or other encumbrances (collectively, “Liens”). Upon transfer, assignment and delivery of the Shares and payment therefor in accordance with the terms of this Agreement, the Purchaser will acquire good and marketable title to the Shares, free and clear of any and all Liens.

3.3 Litigation. There is no legal proceeding pending or, to the knowledge of the Seller, threatened, against the Seller or to which the Seller is otherwise a party relating to this Agreement or the transactions contemplated hereby.

3.4 No Conflicts.  Except as disclosed in the SEC Documents, the execution and delivery of this Agreement and the sale and delivery of the Shares by the Seller and the consummation of the transactions contemplated herein and compliance by the Seller with its obligations hereunder do not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default under, or result in the creation or imposition of any tax, lien, charge or encumbrance upon the Shares or any property or assets of the Seller pursuant to any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, license, lease or any other agreement or instrument to which the Seller is a party or by which the Seller is bound, or to which any of the property or assets of the Seller is subject, nor does such action result in any violation of the provisions of Organizational Documents of the Seller or any applicable treaty, law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court, domestic or foreign, having jurisdiction over the Seller or any of its property or assets.
 
3.5 No Consents. No filing with, or consent, approval, authorization, order, registration, qualification or decree of, any court or governmental authority or agency, of any country or nation, is necessary or required for the performance by the Seller of its obligations hereunder, or in connection with the sale and delivery of the Shares hereunder or the consummation of the transactions contemplated by this Agreement.

3.6 SEC Documents. To the knowledge of the Seller, the Issuer has filed with the Securities and Exchange Commission of the United States of America (the “SEC”) all forms, reports, schedules, statements, exhibits and other documents required to be filed under the Exchange Act or the Securities Act (all forms, reports, schedules, statements, exhibits and other documents filed or furnished by the Issuer with the SEC, collectively, the “SEC Documents”). To the knowledge of the Seller, as of its filing date, or, if amended, as of the date of the last such amendment, each SEC Document did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.

3.7 Absence of Certain Developments. To the best knowledge of the Seller, since December 31, 2013 there has been no Material Adverse Effect that is required to be, but has
 
 
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not been, disclosed in the SEC Documents, other than adverse effects relating to changes in general economic or political conditions or changes generally affecting the industry in which the Issuer operates.

4. CONDITIONS PRECEDENT

4.1 The obligations of the Seller under Sections 1.1 and 1.2(b)(i) hereof are subject to the following conditions:

(a) All of the representations and warranties of the Purchaser contained in Section 2 shall be true and correct in all material respects (other than the Purchaser’s representations and warranties set forth in Section 2.1 which shall be true and correct in all respects) on and as of the date hereof and on the Closing Date, and

(b) The Purchaser has performed all of its obligations contained in this Agreement (to be performed prior to the Closing) in all material respects.

4.2 The obligations of the Purchaser under Sections 1.1 and 1.2(b)(ii) hereof are subject to the following conditions:

(a) All of the representations and warranties of the Seller contained in Section 3 shall be true and correct in all material respects (other than the representations and warranties set forth in Sections 3.1 and 3.2 which shall be true and correct in all respects) on and as of the date hereof and on the Closing Date, and

(b) The Seller has performed all of its obligations contained in this Agreement (to be performed prior to the Closing) in all material respects.
 
5. COVENANTS

5.1 Notification. Each party to this Agreement will notify the other party as soon as reasonably practicable (but in any event prior to the Closing Date) in the event it comes to such party’s attention that any of such party’s representations or warranties set out in this Agreement has ceased to be true and accurate in any material respect or there has been any breach by such party of any of its agreements contained in this Agreement or any failure by such party to comply with any of its obligations contained in this Agreement.

5.2 Price Adjustment; Return of Purchase Price.

(a) If within 1 year of the Closing Date, (i) a Take-Private Transaction is consummated, (ii) the Take-Private Per Share Consideration is greater than the Per Share Consideration and (iii) the Purchaser is a member of the consortium acquiring control of the Issuer in the Take-Private Transaction, the Purchaser shall deliver, or cause to be delivered, within 7 Business Days after the consummation of the Take-Private Transaction, a wire transfer of immediately available funds into an account designated by the Seller in an amount (the “Make-whole Payment”) equal to the product of (A) number of Shares multiplied by (B) the result of (1) the Take-Private Per Share Consideration minus (2) the Per Share Consideration.
 
 
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(b) If within 1 year of the Closing Date, (i) a Take-Private Transaction is consummated, (ii) the Take-Private Per Share Consideration is greater than the Per Share Consideration and (iii) the Purchaser is not a member of the consortium acquiring control of the Issuer in the Take-Private Transaction solely due to the Purchaser’s own decision or election not to participate in the Take-Private Transaction without the Seller’s written consent, the Purchaser shall deliver, or cause to be delivered, within 7 Business Days after the consummation of the Take-Private Transaction, a wire transfer of immediately available funds into an account designated by the Seller the Make-whole Payment as calculated in accordance with Section 5.2(a) above.

(c) If within 1 year of the Closing Date, (i) a Take-Private Transaction by a consortium including the Purchaser and the Seller is not consummated and (ii) such non-consummation is solely caused by the Seller failing to vote in favor of such Take-Private Transaction at the shareholders meeting called for the purposes of approving such transaction, the Seller shall deliver (in exchange for the delivery by the Purchaser to the Seller of the Shares, free and clear of all Liens), within 7 Business Days after the one-year anniversary of the Closing Date, by a wire transfer of immediately available funds into an account designated by the Purchaser, an amount equal to the Purchase Price.

5.3 Conversion to ADS. From and after the Consortium Agreement is terminated with respect to the Purchaser, at the request of the Purchaser, the Seller shall use its reasonable best efforts to cause the Issuer to cause, and cooperate with, the Depositary (as defined in the Deposit Agreement) to establish procedures enabling the deposit of the Shares with the Depositary in order to enable the Purchaser to hold its ownership interests in the Shares in the form of ADSs in accordance with Section 3 of the Deposit Agreement.

5.4 Indemnification. The Seller shall keep the Purchaser indemnified against any losses, liabilities, costs, claims, actions and demands (including any properly incurred expenses arising in connection therewith) which the Purchaser may incur, or which may be made against the Purchaser as a result of or in relation to any breach by the Seller of this Agreement or any misrepresentation in or breach of any of the Seller’s representations and warranties and the Seller shall reimburse the Purchaser for all properly incurred costs, charges and expenses which the Purchaser may pay or incur in connection with investigating, disputing or defending any such loss, liability, action or claim; provided that the representations and warranties of the Seller shall survive the Closing for 12 months.

5.5 SEC Filings. Each Party agrees, confirms and undertakes that promptly upon the signing of this Agreement and in any event within the time required by applicable law, such Party shall file a Form 13D to announce the entry into this Agreement.

5.6 Dividends. The Parties agree that any Post-Closing Dividends are for the account of the Purchaser. If any Post-Closing Dividend is paid to the Seller, the Seller shall pay (within 7 Business Days of the receipt of the Post-Closing Dividend by the Seller) such Post-Closing Dividend to the Purchaser by a wire transfer of immediately available funds into an account designated by the Purchaser; provided that at the time of such transfer of the Post-Closing Dividend from the Seller to the Purchaser, the Purchaser shall have paid the Purchase Price in full (together with interest, if any, accrued thereon in accordance with Section 5.7).

5.7 Interest. Starting on the day after the Closing Date, for every calendar day after the Closing Date, simple interest will accrue at a rate equal to 5% per annum in excess of the
 
 
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prime rate published by Citibank N.A. from time to time, calculated based on a 360-day year on any amounts required to be paid under this Agreement by the Purchaser to the Seller at the Closing, but not actually paid by the Purchaser to the Seller on the Closing Date.

5.8 Merger Price. The Purchaser agrees that it shall not, and shall cause its affiliates and any consortium of which it or any of its affiliates is a member not to, enter into any definitive agreement with the Issuer in connection with any Take-Private Transaction in which the Take-Private Per Share Consideration is below the Per Share Consideration, nor consummate any such Take-Private Per Share Consideration.
 
6. MISCELLANEOUS

6.1 Certain Definitions. For purposes of this Agreement, the following terms shall have the meanings specified in this Section 6.1:

ADS” means the American Depositary Shares of the Issuer, each representing two Class A Ordinary Shares.

ADS/Share Ratio” means such portion of ADSs that is equivalent to one Class A Ordinary Share if one ADS does not represent one Class A Ordinary Share, which for the avoidance of doubt is ½ as of the date hereof.
 
Affiliated Entities” means all companies listed on Exhibit 8.1 to the Form 20-F for the fiscal year ended December 31, 2013 filed with the SEC on April 29, 2014, and any other person (other than a natural person) (i) that is directly or indirectly controlled by the Issuer or (ii) whose assets, or portions thereof, are consolidated with the net earnings of the Issuer and are recorded on the books of the Issuer for financial reporting purposes in accordance with US GAAP.

Business Day” means any day except any Saturday, any Sunday, any day that is a federal legal holiday in the United States of America, a public holiday in the People’s Republic of China, Hong Kong, or the Cayman Islands, or any day on which banking institutions in the State of New York, the People’s Republic of China, Hong Kong, or the Cayman Islands are authorized or required by law or other governmental action to close.

Class A Ordinary Shares” means ordinary shares, US$0.01 par value, of the Issuer.

Class B Ordinary Shares” means ordinary shares, US$0.01 par value, of the Issuer.

 “Consortium Agreement” means the Consortium Agreement, dated as of January 27, 2014, by and between Shanda Interactive Entertainment Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands and Primavera Capital (Cayman) Fund I L.P., a limited partnership organized under the laws of the Cayman Islands, to which several entities joined as party after the signing date thereof.

Deposit Agreement” means the Deposit Agreement, dated as of September 24, 2009 by and among (i) the Issuer, (ii) JPMorgan Chase Bank, N.A. and (iii) all holders and beneficial owners of ADSs issued thereunder.
 
 
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Exchange Act” means the Securities Exchange Act of 1934 of the United States of America, as amended.

Issuer” means Shanda Games Limited, a Cayman Islands exempted company.

knowledge of” means, with respect to any person, the actual knowledge and constructive knowledge of such person.

Material Adverse Effect” means a material adverse change in the business, properties, condition, financial or otherwise, or in the earnings, business affairs or prospects of the Issuer and the Affiliated Entities taken as a whole, whether or not arising in the ordinary course of business.

Organizational Documents” means, with respect to any person, the memorandum of association, articles of association, articles of incorporation, certificate of incorporation, bylaws and any charter, partnership agreements, joint venture agreements or other organizational documents of such entity and any amendments thereto.

Per Share Consideration” means US$3.45.

Post-Closing Dividend” means any dividend with respect to the Shares for which the record date is on or after the date of the Closing Date.

Purchase Price” means the aggregate amount equal to the Per Share Consideration multiplied by the number of Shares.

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

Take-Private Per Share Consideration” means the consideration paid per ADS multiplied by the ADS/Share Ratio in a Take-Private Transaction.

Take-Private Transaction” means an acquisition transaction pursuant to which the ADSs (and the underlying Class A Ordinary Shares) would be delisted from the NASDAQ Stock Market and deregistered under the Exchange Act.

6.2 Termination. This Agreement may be terminated prior to the Closing as follows:

(a) at the election of the Seller on or after September 30, 2014 (the “Long Stop Date”), if the Closing shall not have occurred by the close of business on such date as a direct result of the breach by the Purchaser of its obligations hereunder; provided that the Purchaser shall remain liable for its breach after such termination;

(b) at the election of the Purchaser on or after the Long Stop Date, if the Closing shall not have occurred by the close of business on such date as a direct result of the breach by the Seller of its obligations hereunder; provided that the Seller shall remain liable for its breach after such termination; or

(c) by mutual written consent of the Seller and Purchaser.
 
 
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6.3 Further Assurances. The Seller and the Purchaser agree to execute and deliver such other documents or agreements and to take such other action as may be necessary or desirable for the implementation of this Agreement and the consummation of the transactions contemplated hereby.

6.4 Complete Agreement; Amendments; Waivers. This Agreement constitutes the complete agreement between the parties with respect to the subject matter hereof, supercedes any previous agreement or understanding between them relating hereto and may not be modified, altered or amended except as provided herein. This Agreement can be amended, supplemented or changed, and any provision hereof can be waived, only by written instrument making specific reference to this Agreement signed by the party against whom enforcement of any such amendment, supplement, modification or waiver is sought. No action taken pursuant to this Agreement shall be deemed to constitute a waiver by the party taking such action or compliance with any representation, warranty, covenant or agreement contained herein. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law.

6.5 Expenses. Each party hereto shall bear its own expenses incurred in connection with the negotiation and execution of this Agreement and each other document and instrument contemplated by this Agreement and the consummation of the transactions contemplated hereby and thereby.

6.6 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic and legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions be consummated as originally contemplated to the fullest extent possible.

6.7 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and permitted assigns. Nothing in this Agreement shall create or be deemed to create any third party beneficiary rights in any person or entity not a party to this Agreement. No assignment of this Agreement or of any rights or obligations hereunder may be made by any party hereto (by operation of law or otherwise) without the prior written consent of the other parties hereto and any attempted assignment without the required consent shall be void; provided that, notwithstanding the foregoing, (i) Ningxia Zhongyincashmere International Group Co., Ltd. may assign to an affiliate formed under the laws of the Cayman Islands, the British Virgin Islands or Hong Kong all of its rights, remedies, obligations or liabilities arising hereunder or by reason hereof, in which case such assignee shall execute and deliver to the Seller an agreement to be bound by the terms of this Agreement and (ii) in connection
 
 
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with any assignment to such affiliate referenced in clause (i), Ningxia Zhongyincashmere International Group Co., Ltd. hereby fully and unconditionally guarantees to the Seller, as primary obligor and not merely as a surety, the prompt and full discharge of all of the obligations of such affiliate as the “Purchaser” under this Agreement.

6.8 Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

6.9 Dispute Resolution.

(a) Subject to Section 6.9(b), any disputes, actions and proceedings against any Party or arising out of or in any way relating to this Agreement shall be submitted to the Hong Kong International Arbitration Centre (“HKIAC”) and resolved in accordance with the Arbitration Rules of HKIAC in force at the relevant time and as may be amended by this Section 6.9. The place of arbitration shall be Hong Kong. The official language of the arbitration shall be English and the tribunal shall consist of three arbitrators (each, an “Arbitrator”). The claimant(s), irrespective of number, shall nominate jointly one Arbitrator; the respondent(s), irrespective of number, shall nominate jointly one Arbitrator; and a third Arbitrator will be nominated jointly by the first two Arbitrators and shall serve as chairman of the Tribunal. In the event the claimant(s) or respondent(s) or the first two Arbitrators shall fail to nominate or agree the joint nomination of an Arbitrator or the third Arbitrator within the time limits specified by the Rules, such Arbitrator shall be appointed promptly by the HKIAC. The Tribunal shall have no authority to award punitive or other punitive-type damages. The award of the arbitration tribunal shall be final and binding upon the disputing parties. Any party to an award may apply to any court of competent jurisdiction for enforcement of such award and, for purposes of the enforcement of such award, the Parties irrevocably and unconditionally submit to the jurisdiction of any court of competent jurisdiction and waive any defenses to such enforcement based on lack of personal jurisdiction or inconvenient forum.

(b) Notwithstanding the foregoing, the Parties hereby consent to and agree that in addition to any recourse to arbitration as set out in this Section 6.9, any Party may, to the extent permitted under the laws of the jurisdiction where application is made, seek an interim injunction from a court or other authority with competent jurisdiction and, notwithstanding that this Agreement is governed by the laws of the State of New York, a court or authority hearing an application for injunctive relief may apply the procedural law of the jurisdiction where the court or other authority is located in determining whether to grant the interim injunction. For the avoidance of doubt, this Section 6.9(b) is only applicable to the seeking of interim injunctions and does not restrict the application of Section 6.9(a) in any way.

(c) Each Party acknowledges and agrees that the other Parties would be irreparably injured by a breach of this Agreement by it and that money damages alone are an inadequate remedy for actual or threatened breach of this Agreement. Accordingly, each Party shall be entitled to bring an action for specific performance and/or injunctive or other equitable relief (without posting a bond or other security) to enforce or prevent any violations of any provision of this Agreement, in addition to all other rights and remedies available at law or in equity to such Party, including the right to claim money damages for breach of any provision of this Agreement.
 
 
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6.10 Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given when delivered personally, by international courier or by e-mail (with confirmation of receipt) to the parties at the following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision):

If to the Seller, to:

Shanda SDG Investment Limited
8 Stevens Road
Singapore 257819
Attention: Ms. Han Li
 
 
With a copy to (which shall not constitute notice):

Wilson Sonsini Goodrich & Rosati
Unit 1001, 10/F, Henley Building
5 Queen’s Road, Central
Hong Kong
Attention: Zhan Chen

If to the Purchaser, to:

Ningxia Zhongyincashmere International Group Co., Ltd.
Zhongyin Avenue
The Cashmere Industrial Park
Lingwu, Ningxia Province
China
Attention: Xiaofei Chen

6.11 Survival. All of the covenants and agreements of the parties in this Agreement shall survive the Closing.

6.12 Section and Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

6.13 Counterparts. This Agreement may be executed and delivered (including by facsimile transmission, e-mail of .pdf version or delivery of photographic copy via text message or WeChat) in one or more counterparts, all of which when executed and delivered shall be considered one and the same agreement.

[signature page follows]

 
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IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the day and year first above written.
 
 
 
SELLER:
 
SHANDA SDG INVESTMENTLIMITED
 
         
         
         
  By: /s/ Tianqiao Chen  
    Name: Tianqiao Chen  
    Title: Director  

 
 
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IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the day and year first above written.

 
 
PURCHASER:
 
 
NINGXIA ZHONGYINCASHMERE INTERNATIONAL GROUP CO., LTD.
 
         
         
         
  By: /s/ Shengming Ma  
    Name: Shengming Ma  
    Title: Chairman of the Board  



 


Exhibit 7.12
 
ADHERENCE AGREEMENT
 
THIS ADHERENCE AGREEMENT (this “Agreement”) is entered into on September 1, 2014
 
BY:
 
ORIENT FINANCE HOLDINGS (HONG KONG) LIMITED, a company limited by shares incorporated and existing under the laws of Hong Kong with its office address at 28/F-29/F, 100 Queen’s Road Central, Central, Hong Kong (the “New Sponsor”).
 
RECITALS:
 
(A)
On January 27, 2014, the parties listed at Annex A (the “Existing Parties”) entered into a consortium agreement (the “Consortium Agreement”) and proposed to undertake an acquisition transaction (the “Transaction”) with respect to Shanda Games Limited (the “Target”), a company incorporated under the laws of the Cayman Islands and listed on the Nasdaq Stock Market (“NASDAQ”), pursuant to which the Target would be delisted from NASDAQ and deregistered under the United States Securities Exchange Act of 1934, as amended.
 
(B)
Additional sponsors may be admitted to the Consortium pursuant to Section 1.2(f) of the Consortium Agreement.
 
(C)
On April 18, 2014, Perfect World Co., Ltd., a company limited by shares incorporated and existing under the laws of the Cayman Islands (“Perfect World”), entered into an adherence agreement with the Existing Parties, pursuant to which Perfect World became a party to the Consortium Agreement.
 
(D)
On April 25, 2014, FV Investment Holdings, a company limited by shares incorporated and existing under the laws of the Cayman Islands (“FountainVest”), entered into an adherence agreement with the Existing Parties and Perfect World, pursuant to which FoundtainVest became a party to the Consortium Agreement.
 
(E)
On May 19, 2014, Cap IV Engagement Limited, a company limited by shares incorporated and existing under the laws of the Cayman Islands (“Cap IV”), entered into an adherence agreement with the Existing Parties, Perfect World and FountainVest, pursuant to which Cap IV became a party to the Consortium Agreement.
 
(F)
On September 1, 2014, each of Perfect World, FountainVest and Cap IV withdrew from the Consortium.
 
(G)
The New Sponsor now wishes to participate in the Transaction contemplated under the Consortium Agreement, to sign this Agreement, and to be bound by the terms of the Consortium Agreement as a Sponsor and a Party thereto.
 
THIS AGREEMENT WITNESSES as follows:
 
1.
DEFINED TERMS AND CONSTRUCTION
 
1.1
Capitalized terms used but not defined herein shall have the meaning set forth in the Consortium Agreement.
 
 
 

 
 
1.2
This Agreement shall be incorporated into the Consortium Agreement as if expressly incorporated into the Consortium Agreement.
 
2.
UNDERTAKINGS
 
2.1
Assumption of obligations
 
The New Sponsor undertakes, to each other party to this Agreement that it will, with effect from the date hereof, perform and comply with each of the obligations of a Sponsor as if it had been a Party to the Consortium Agreement at the date of execution thereof and the Existing Parties agree that where there is a reference to a “Sponsor” or “Party”, it shall be deemed to include a reference to the New Sponsor and with effect from the date hereof, all the rights of a Sponsor provided under the Consortium Agreement will be accorded to the New Sponsor as if the New Sponsor had been a Sponsor and a Party under the Consortium Agreement at the date of execution thereof .
 
3.
REPRESENTATIONS AND WARRANTIES
 
3.1
The New Sponsor represents and warrants to each of the other Parties as follows:
 
 
3.1.1
Status
 
It is a company duly organized, established and validly existing under the laws of the jurisdiction stated in preamble 1 of this Agreement and has all requisite power and authority to own, lease and operate its assets and to conduct the business which it conducts.
 
 
3.1.2
Due Authorization
 
It has full power and authority to execute and deliver this Agreement and the execution, delivery and performance of this Agreement by the New Sponsor has been duly authorized by all necessary action on behalf of the New Sponsor.
 
 
3.1.3
Legal, Valid and Binding Obligation
 
This Agreement has been duly executed and delivered by the New Sponsor and constitutes the legal, valid and binding obligation of the New Sponsor, enforceable against it in accordance with the terms hereof.
 
 
3.1.4
Reliance
 
Each Party acknowledges that the other Parties have entered into this Agreement on the basis of and reliance upon (among other things) the representations and warranties in Sections 3.1.1 to 3.1.4 and have been induced by them to enter into this Agreement.
 
4.
NOTICE
 
Any notice, request, instruction or other document to be provided hereunder by any Party to another Party shall be in writing and delivered personally or sent by facsimile, overnight courier or electronic mail, to the address, facsimile number or electronic mail address provided under the other Party’s signature page to the Consortium Agreement, or to any other address, facsimile number or electronic mail address as a Party may hereafter specify for the purpose by notice to the other Parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by
 
 
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the recipient thereof if received prior to 6:00 p.m. on a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed to have been received on the next succeeding Business Day in the place of receipt.
 
5.
GOVERNING LAW.
 
This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to any choice of law or conflict of law rules or provisions that would cause the application of the laws of any jurisdiction other than the State of New York.
 
6.
DISPUTE RESOLUTION.
 
6.1
Any disputes, actions and proceedings against any Party or arising out of or in any way relating to this Agreement shall be submitted to the Hong Kong International Arbitration Centre (“HKIAC”) and resolved in accordance with the Arbitration Rules of HKIAC in force at the relevant time and as may be amended by this Section 6.1. The place of arbitration shall be Hong Kong. The official language of the arbitration shall be English and the tribunal shall consist of three arbitrators (each, an “Arbitrator”). The claimant(s), irrespective of number, shall nominate jointly one Arbitrator; the respondent(s), irrespective of number, shall nominate jointly one Arbitrator; and a third Arbitrator will be nominated jointly by the first two Arbitrators and shall serve as chairman of the Tribunal. In the event the claimant(s) or respondent(s) or the first two Arbitrators shall fail to nominate or agree the joint nomination of an Arbitrator or the third Arbitrator within the time limits specified by the Rules, such Arbitrator shall be appointed promptly by the HKIAC. The Tribunal shall have no authority to award punitive or other punitive-type damages. The award of the arbitration tribunal shall be final and binding upon the disputing parties. Any party to an award may apply to any court of competent jurisdiction for enforcement of such award and, for purposes of the enforcement of such award, the Parties irrevocably and unconditionally submit to the jurisdiction of any court of competent jurisdiction and waive any defenses to such enforcement based on lack of personal jurisdiction or inconvenient forum.
 
6.2
Notwithstanding the foregoing, the Parties hereby consent to and agree that in addition to any recourse to arbitration as set out in this Section 6, any Party may, to the extent permitted under the laws of the jurisdiction where application is made, seek an interim injunction from a court or other authority with competent jurisdiction and, notwithstanding that this Agreement is governed by the laws of the State of New York, a court or authority hearing an application for injunctive relief may apply the procedural law of the jurisdiction where the court or other authority is located in determining whether to grant the interim injunction. For the avoidance of doubt, this Section 6.2 is only applicable to the seeking of interim injunctions and does not restrict the application of Section 6.1 in any way.
 
7.
SPECIFIC PERFORMANCE.
 
Each Party acknowledges and agrees that the other Parties would be irreparably injured by a breach of this Agreement by it and that money damages alone are an inadequate remedy for actual or threatened breach of this Agreement. Accordingly, each Party shall be entitled to specific performance or injunctive or other equitable relief (without posting a bond or other security) to enforce or prevent any violations of any provision of this Agreement, in addition to all other rights and remedies available at law or in equity to such Party, including the right to claim money damages for breach of any provision of this Agreement.
 
 
-3-

 

 
8.
TERMINATION.
 
This Agreement shall terminate automatically if and when the Share Purchase Agreement dated as of the date hereof by and between the New Sponsor and Shanda SDG Investment Limited, a British Virgin Islands corporation is terminated pursuant to the terms thereof.
 
 
[Signature page follows.]
 
 
-4-

 
 

 
IN WITNESS WHEREOF, the New Sponsor has caused this Agreement to be duly executed by its respective authorized officers as of the day and year first above written.
 
 
ORIENT FINANCE HOLDINGS (HONG KONG) LIMITED
 
       
       
       
  By: /s/ Ning Guan  
  Name: Ning Guan  
  Position: Chief Executive Officer  
       
       
 
Notice details
Address: 28/F-29/F, 100 Queen’s Road Central, Central, Hong Kong
Email: gning@orientsec.com.cn
Facsimile: +852-22599188
 
 
-5-

 
 
Acknowledged and agreed:


SHANDA INTERACTIVE ENTERTAINMENT LIMITED

 
     
By: /s/ Tianqiao Chen  
Name: Tianqiao Chen  
Title:
Director
 

 
-6-

 
 
PRIMAVERA CAPITAL (CAYMAN) FUND I L.P.
 
By:           PRIMAVERA CAPITAL (CAYMAN) GP1 L.P., its General Partner
 
By:           PRIMAVERA (CAYMAN) GP1 LTD, its General Partner
 
     
By:    
Name:    
Title:
 
 

 
-7-

 

 
ANNEX A
 
Existing Parties
 
 
1.
Shanda Interactive Entertainment Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands

 
 
2.
Primavera Capital (Cayman) Fund I L.P., a limited partnership organized under the laws of the Cayman Islands
 
 
-8-



Exhibit 7.13
 

ADHERENCE AGREEMENT
 
THIS ADHERENCE AGREEMENT (this “Agreement”) is entered into on September 1, 2014
 
BY:
 
SHANGHAI BUYOUT FUND L.P. , a limited partnership formed under the laws of the People’s Republic of China with its office address at Room 2802, No. 689 Guangdong Road, Huangpu District, Shanghai, China (the “New Sponsor”).
 
RECITALS:
 
(A)
On January 27, 2014, the parties listed at Annex A (the “Existing Parties”) entered into a consortium agreement (the “Consortium Agreement”) and proposed to undertake an acquisition transaction (the “Transaction”) with respect to Shanda Games Limited (the “Target”), a company incorporated under the laws of the Cayman Islands and listed on the Nasdaq Stock Market (“NASDAQ”), pursuant to which the Target would be delisted from NASDAQ and deregistered under the United States Securities Exchange Act of 1934, as amended.
 
(B)
Additional sponsors may be admitted to the Consortium pursuant to Section 1.2(f) of the Consortium Agreement.
 
(C)
On April 18, 2014, Perfect World Co., Ltd., a company limited by shares incorporated and existing under the laws of the Cayman Islands (“Perfect World”), entered into an adherence agreement with the Existing Parties, pursuant to which Perfect World became a party to the Consortium Agreement.
 
(D)
On April 25, 2014, FV Investment Holdings, a company limited by shares incorporated and existing under the laws of the Cayman Islands (“FountainVest”), entered into an adherence agreement with the Existing Parties and Perfect World, pursuant to which FoundtainVest became a party to the Consortium Agreement.
 
(E)
On May 19, 2014, Cap IV Engagement Limited, a company limited by shares incorporated and existing under the laws of the Cayman Islands (“Cap IV”), entered into an adherence agreement with the Existing Parties, Perfect World and FountainVest, pursuant to which Cap IV became a party to the Consortium Agreement.
 
(F)
On September 1, 2014, each of Perfect World, FountainVest and Cap IV withdrew from the Consortium.
 
(G)
The New Sponsor now wishes to participate in the Transaction contemplated under the Consortium Agreement, to sign this Agreement, and to be bound by the terms of the Consortium Agreement as a Sponsor and a Party thereto.
 
THIS AGREEMENT WITNESSES as follows:
 
1.
DEFINED TERMS AND CONSTRUCTION
 
1.1
Capitalized terms used but not defined herein shall have the meaning set forth in the Consortium Agreement.
 
 
 

 
 
1.2
This Agreement shall be incorporated into the Consortium Agreement as if expressly incorporated into the Consortium Agreement.
 
2.
UNDERTAKINGS
 
2.1
Assumption of obligations
 
The New Sponsor undertakes, to each other party to this Agreement that it will, with effect from the date hereof, perform and comply with each of the obligations of a Sponsor as if it had been a Party to the Consortium Agreement at the date of execution thereof and the Existing Parties agree that where there is a reference to a “Sponsor” or “Party”, it shall be deemed to include a reference to the New Sponsor and with effect from the date hereof, all the rights of a Sponsor provided under the Consortium Agreement will be accorded to the New Sponsor as if the New Sponsor had been a Sponsor and a Party under the Consortium Agreement at the date of execution thereof .
 
3.
REPRESENTATIONS AND WARRANTIES
 
3.1
The New Sponsor represents and warrants to each of the other Parties as follows:
 
 
3.1.1
Status
 
It is a company duly organized, established and validly existing under the laws of the jurisdiction stated in preamble 1 of this Agreement and has all requisite power and authority to own, lease and operate its assets and to conduct the business which it conducts.
 
 
3.1.2
Due Authorization
 
It has full power and authority to execute and deliver this Agreement and the execution, delivery and performance of this Agreement by the New Sponsor has been duly authorized by all necessary action on behalf of the New Sponsor.
 
 
3.1.3
Legal, Valid and Binding Obligation
 
This Agreement has been duly executed and delivered by the New Sponsor and constitutes the legal, valid and binding obligation of the New Sponsor, enforceable against it in accordance with the terms hereof.
 
 
3.1.4
Reliance
 
Each Party acknowledges that the other Parties have entered into this Agreement on the basis of and reliance upon (among other things) the representations and warranties in Sections 3.1.1 to 3.1.4 and have been induced by them to enter into this Agreement.
 
4.
NOTICE
 
Any notice, request, instruction or other document to be provided hereunder by any Party to another Party shall be in writing and delivered personally or sent by facsimile, overnight courier or electronic mail, to the address, facsimile number or electronic mail address provided under the other Party’s signature page to the Consortium Agreement, or to any other address, facsimile number or electronic mail address as a Party may hereafter specify for the purpose by notice to the other Parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by
 
 
 

 
 
the recipient thereof if received prior to 6:00 p.m. on a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed to have been received on the next succeeding Business Day in the place of receipt.
 
5.
GOVERNING LAW.
 
This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to any choice of law or conflict of law rules or provisions that would cause the application of the laws of any jurisdiction other than the State of New York.
 
6.
DISPUTE RESOLUTION.
 
6.1
Any disputes, actions and proceedings against any Party or arising out of or in any way relating to this Agreement shall be submitted to the Hong Kong International Arbitration Centre (“HKIAC”) and resolved in accordance with the Arbitration Rules of HKIAC in force at the relevant time and as may be amended by this Section 6.1. The place of arbitration shall be Hong Kong. The official language of the arbitration shall be English and the tribunal shall consist of three arbitrators (each, an “Arbitrator”). The claimant(s), irrespective of number, shall nominate jointly one Arbitrator; the respondent(s), irrespective of number, shall nominate jointly one Arbitrator; and a third Arbitrator will be nominated jointly by the first two Arbitrators and shall serve as chairman of the Tribunal. In the event the claimant(s) or respondent(s) or the first two Arbitrators shall fail to nominate or agree the joint nomination of an Arbitrator or the third Arbitrator within the time limits specified by the Rules, such Arbitrator shall be appointed promptly by the HKIAC. The Tribunal shall have no authority to award punitive or other punitive-type damages. The award of the arbitration tribunal shall be final and binding upon the disputing parties. Any party to an award may apply to any court of competent jurisdiction for enforcement of such award and, for purposes of the enforcement of such award, the Parties irrevocably and unconditionally submit to the jurisdiction of any court of competent jurisdiction and waive any defenses to such enforcement based on lack of personal jurisdiction or inconvenient forum.
 
6.2
Notwithstanding the foregoing, the Parties hereby consent to and agree that in addition to any recourse to arbitration as set out in this Section 6, any Party may, to the extent permitted under the laws of the jurisdiction where application is made, seek an interim injunction from a court or other authority with competent jurisdiction and, notwithstanding that this Agreement is governed by the laws of the State of New York, a court or authority hearing an application for injunctive relief may apply the procedural law of the jurisdiction where the court or other authority is located in determining whether to grant the interim injunction. For the avoidance of doubt, this Section 6.2 is only applicable to the seeking of interim injunctions and does not restrict the application of Section 6.1 in any way.
 
7.
SPECIFIC PERFORMANCE.
 
Each Party acknowledges and agrees that the other Parties would be irreparably injured by a breach of this Agreement by it and that money damages alone are an inadequate remedy for actual or threatened breach of this Agreement. Accordingly, each Party shall be entitled to specific performance or injunctive or other equitable relief (without posting a bond or other security) to enforce or prevent any violations of any provision of this Agreement, in addition to all other rights and remedies available at law or in equity to such Party, including the right to claim money damages for breach of any provision of this Agreement.
 
 
 

 

 
8.
TERMINATION.
 
This Agreement shall terminate automatically if and when the Share Purchase Agreement dated as of the date hereof by and between the New Sponsor and Shanda SDG Investment Limited, a British Virgin Islands corporation is terminated pursuant to the terms thereof.
 
 
[Signature page follows.]
 
 
 
 

 

 
IN WITNESS WHEREOF, the New Sponsor has caused this Agreement to be duly executed by its respective authorized officers as of the day and year first above written.
 
 
SHANGHAI BUYOUT FUND L.P.
 
       
 
BY: HAITONG M&A CAPITAL MANAGEMENT (SHANGHAI) CO., LTD. , its general partner
 
       
       
  By: /s/ Yanhua Yang  
  Name: Yanhua Yang  
  Position: Chairman of the Board  
 
 
Acknowledged and agreed:
 


SHANDA INTERACTIVE ENTERTAINMENT LIMITED

 
     
By: /s/ Tianqiao Chen  
Name: Tianqiao Chen  
Title:
Director
 


 
 

 
 
 
PRIMAVERA CAPITAL (CAYMAN) FUND I L.P.
 
By:           PRIMAVERA CAPITAL (CAYMAN) GP1 L.P., its General Partner
 
By:           PRIMAVERA (CAYMAN) GP1 LTD, its General Partner
 

     
By:    
Name:    
Title:    

 
 

 

 
ANNEX A
 
Existing Parties
 
 
1.
Shanda Interactive Entertainment Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands
 
 
 
2.
Primavera Capital (Cayman) Fund I L.P., a limited partnership organized under the laws of the Cayman Islands
 
 
 



Exhibit 7.14
 

ADHERENCE AGREEMENT
 
THIS ADHERENCE AGREEMENT (this “Agreement”) is entered into on September 1, 2014
 
BY:
 
NINGXIA ZHONGYINCASHMERE INTERNATIONAL GROUP CO., LTD. , a company formed under the laws of People’s Republic of China with its office address at Zhongyin Avenue, The Cashmere Industrial Park, Lingwu, Ningxia Province, China (the “New Sponsor”).
 
RECITALS:
 
(A)  
On January 27, 2014, the parties listed at Annex A (the “Existing Parties”) entered into a consortium agreement (the “Consortium Agreement”) and proposed to undertake an acquisition transaction (the “Transaction”) with respect to Shanda Games Limited (the “Target”), a company incorporated under the laws of the Cayman Islands and listed on the Nasdaq Stock Market (“NASDAQ”), pursuant to which the Target would be delisted from NASDAQ and deregistered under the United States Securities Exchange Act of 1934, as amended.
 
(B)  
Additional sponsors may be admitted to the Consortium pursuant to Section 1.2(f) of the Consortium Agreement.
 
(C)  
On April 18, 2014, Perfect World Co., Ltd., a company limited by shares incorporated and existing under the laws of the Cayman Islands (“Perfect World”), entered into an adherence agreement with the Existing Parties, pursuant to which Perfect World became a party to the Consortium Agreement.
 
(D)  
On April 25, 2014, FV Investment Holdings, a company limited by shares incorporated and existing under the laws of the Cayman Islands (“FountainVest”), entered into an adherence agreement with the Existing Parties and Perfect World, pursuant to which FoundtainVest became a party to the Consortium Agreement.
 
(E)  
On May 19, 2014, Cap IV Engagement Limited, a company limited by shares incorporated and existing under the laws of the Cayman Islands (“Cap IV”), entered into an adherence agreement with the Existing Parties, Perfect World and FountainVest, pursuant to which Cap IV became a party to the Consortium Agreement.
 
(F)  
On September 1, 2014, each of Perfect World, FountainVest and Cap IV withdrew from the Consortium.
 
(G)  
The New Sponsor now wishes to participate in the Transaction contemplated under the Consortium Agreement, to sign this Agreement, and to be bound by the terms of the Consortium Agreement as a Sponsor and a Party thereto.
 
THIS AGREEMENT WITNESSES as follows:
 
1.  
DEFINED TERMS AND CONSTRUCTION
 
1.1  
Capitalized terms used but not defined herein shall have the meaning set forth in the Consortium Agreement.
 
 
 

 
 
1.2  
This Agreement shall be incorporated into the Consortium Agreement as if expressly incorporated into the Consortium Agreement.
 
2.  
UNDERTAKINGS
 
2.1  
Assumption of obligations
 
The New Sponsor undertakes, to each other party to this Agreement that it will, with effect from the date hereof, perform and comply with each of the obligations of a Sponsor as if it had been a Party to the Consortium Agreement at the date of execution thereof and the Existing Parties agree that where there is a reference to a “Sponsor” or “Party”, it shall be deemed to include a reference to the New Sponsor and with effect from the date hereof, all the rights of a Sponsor provided under the Consortium Agreement will be accorded to the New Sponsor as if the New Sponsor had been a Sponsor and a Party under the Consortium Agreement at the date of execution thereof .
 
3.  
REPRESENTATIONS AND WARRANTIES
 
3.1  
The New Sponsor represents and warrants to each of the other Parties as follows:
 
 
3.1.1  
Status
 
It is a company duly organized, established and validly existing under the laws of the jurisdiction stated in preamble 1 of this Agreement and has all requisite power and authority to own, lease and operate its assets and to conduct the business which it conducts.
 
 
3.1.2  
Due Authorization
 
It has full power and authority to execute and deliver this Agreement and the execution, delivery and performance of this Agreement by the New Sponsor has been duly authorized by all necessary action on behalf of the New Sponsor.
 
 
3.1.3  
Legal, Valid and Binding Obligation
 
This Agreement has been duly executed and delivered by the New Sponsor and constitutes the legal, valid and binding obligation of the New Sponsor, enforceable against it in accordance with the terms hereof.
 
 
3.1.4  
Reliance
 
Each Party acknowledges that the other Parties have entered into this Agreement on the basis of and reliance upon (among other things) the representations and warranties in Sections 3.1.1 to 3.1.4 and have been induced by them to enter into this Agreement.
 
4.  
NOTICE
 
Any notice, request, instruction or other document to be provided hereunder by any Party to another Party shall be in writing and delivered personally or sent by facsimile, overnight courier or electronic mail, to the address, facsimile number or electronic mail address provided under the other Party’s signature page to the Consortium Agreement, or to any other address, facsimile number or electronic mail address as a Party may hereafter specify for the purpose by notice to the other Parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by
 
 
 

 
 
the recipient thereof if received prior to 6:00 p.m. on a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed to have been received on the next succeeding Business Day in the place of receipt.
 
5.  
GOVERNING LAW.
 
This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to any choice of law or conflict of law rules or provisions that would cause the application of the laws of any jurisdiction other than the State of New York.
 
6.  
DISPUTE RESOLUTION.
 
6.1  
Any disputes, actions and proceedings against any Party or arising out of or in any way relating to this Agreement shall be submitted to the Hong Kong International Arbitration Centre (“HKIAC”) and resolved in accordance with the Arbitration Rules of HKIAC in force at the relevant time and as may be amended by this Section 6.1. The place of arbitration shall be Hong Kong. The official language of the arbitration shall be English and the tribunal shall consist of three arbitrators (each, an “Arbitrator”). The claimant(s), irrespective of number, shall nominate jointly one Arbitrator; the respondent(s), irrespective of number, shall nominate jointly one Arbitrator; and a third Arbitrator will be nominated jointly by the first two Arbitrators and shall serve as chairman of the Tribunal. In the event the claimant(s) or respondent(s) or the first two Arbitrators shall fail to nominate or agree the joint nomination of an Arbitrator or the third Arbitrator within the time limits specified by the Rules, such Arbitrator shall be appointed promptly by the HKIAC. The Tribunal shall have no authority to award punitive or other punitive-type damages. The award of the arbitration tribunal shall be final and binding upon the disputing parties. Any party to an award may apply to any court of competent jurisdiction for enforcement of such award and, for purposes of the enforcement of such award, the Parties irrevocably and unconditionally submit to the jurisdiction of any court of competent jurisdiction and waive any defenses to such enforcement based on lack of personal jurisdiction or inconvenient forum.
 
6.2  
Notwithstanding the foregoing, the Parties hereby consent to and agree that in addition to any recourse to arbitration as set out in this Section 6, any Party may, to the extent permitted under the laws of the jurisdiction where application is made, seek an interim injunction from a court or other authority with competent jurisdiction and, notwithstanding that this Agreement is governed by the laws of the State of New York, a court or authority hearing an application for injunctive relief may apply the procedural law of the jurisdiction where the court or other authority is located in determining whether to grant the interim injunction. For the avoidance of doubt, this Section 6.2 is only applicable to the seeking of interim injunctions and does not restrict the application of Section 6.1 in any way.
 
7.  
SPECIFIC PERFORMANCE.
 
Each Party acknowledges and agrees that the other Parties would be irreparably injured by a breach of this Agreement by it and that money damages alone are an inadequate remedy for actual or threatened breach of this Agreement. Accordingly, each Party shall be entitled to specific performance or injunctive or other equitable relief (without posting a bond or other security) to enforce or prevent any violations of any provision of this Agreement, in addition to all other rights and remedies available at law or in equity to such Party, including the right to claim money damages for breach of any provision of this Agreement.
 
 
 

 
 
8.  
TERMINATION.
 
This Agreement shall terminate automatically if and when the Share Purchase Agreement dated as of the date hereof by and between the New Sponsor and Shanda SDG Investment Limited, a British Virgin Islands corporation is terminated pursuant to the terms thereof.
 
 
[Signature page follows.]
 
 
 

 
 

 
IN WITNESS WHEREOF, the New Sponsor has caused this Agreement to be duly executed by its respective authorized officers as of the day and year first above written.
 
 
 
  NINGXIA ZHONGYINCASHMEREINTERNATIONAL GROUP CO., LTD.  
       
       
  By: /s/ Shengming Ma  
  Name: Shengming Ma  
  Position: Chairman of the Board  
 
 

 
 

 
 
Acknowledged and agreed:
 
 
SHANDA INTERACTIVE ENTERTAINMENT LIMITED
 
     
     
By: /s/ Tianqiao Chen  
Name: Tianqiao Chen  
Title:
Director
 

 
 
 

 
 
 
PRIMAVERA CAPITAL (CAYMAN) FUND I L.P.
 
By:           PRIMAVERA CAPITAL (CAYMAN) GP1 L.P., its General Partner
 
By:           PRIMAVERA (CAYMAN) GP1 LTD, its General Partner

 
     
By:    
Name:    
Title:
 
 

 
 

 


 
ANNEX A
 
Existing Parties
 
 
1.  
Shanda Interactive Entertainment Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands
 
 
 
2.  
Primavera Capital (Cayman) Fund I L.P., a limited partnership organized under the laws of the Cayman Islands
 
 
 



Exhibit 7.15
 
 
WITHDRAWAL NOTICE
 
dated as of September 1, 2014
 
Shanda Interactive Entertainment Limited
8 Stevens Road
Singapore 257819
Attention: Ms. Han Li
 
Primavera Capital Group
28/F, 28 Hennessy Road
Wanchai
Hong Kong
Attention: Jie Lian, Lawrence Wang
 
Re: Withdrawal from the Consortium
 
Reference is made to the Consortium Agreement (as amended and supplemented, the “Agreement”) dated as of January 27, 2014 by and between Shanda Interactive Entertainment Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands (“Shanda Interactive”) and Primavera Capital (Cayman) Fund I L.P., a limited partnership organized under the laws of the Cayman Islands (“Primavera”), to which several entities joined as party after the signing date thereof. Capitalized terms used but not defined herein shall have the meanings ascribed to them under the Agreement.
 
1.  
Each of Perfect World Co., Ltd., a company limited by shares incorporated and existing under the laws of the Cayman Islands (“Perfect World”), FV Investment Holdings, a company limited by shares incorporated and existing under the laws of the Cayman Islands (“FV Investment”), and CAP IV Engagement Limited, a company limited by shares incorporated and existing under the laws of Cayman Islands (“CAP IV”, together with Perfect World and FV Investment, the “Withdrawing Parties”) hereby withdraws from the Consortium.  The withdrawal by the Withdrawing Parties from the Consortium (the “Withdrawal”) will become effective upon the counter-signing of this Withdrawal Notice by each of Shanda Interactive and Primavera (together, the “Remaining Parties”).
 
2.  
Upon the effectiveness of the Withdrawal, each Withdrawing Party shall cease to be a party to the Agreement and shall not be liable to any other Withdrawing Party or any Remaining Party under or in relation to the Agreement, whether in respect of actions taken by such Withdrawing Party prior to, on or after the date of this Withdrawal Notice; provided that the provisions of Section 6.2 (Confidentiality) of the Agreement shall remain in full force and effect and continue to bind the Withdrawing Parties.
 
3.  
Upon the effectiveness of the Withdrawal, each Remaining Party shall cease to be liable to any Withdrawing Party under or in relation to the Agreement, whether in respect of actions taken by such Remaining Party prior to, on or after the date of this Withdrawal Notice; provided that (i) the provisions of Section 6.2 (Confidentiality) of the Agreement shall remain in full force and effect and continue to bind the Remaining Parties and (ii) the Remaining Parties shall pay, on behalf of the Withdrawing Party, the reasonable fees, expenses and disbursements of advisors (including, for the avoidance of doubt, Clifford Chance, Commerce and Finance Law Offices, KPMG, Latham & Watkins, McKinsey & Company and Shin & Kim) incurred by the Withdrawing Party on behalf of and for the benefit of the
 
 
 

 
 
 
Consortium between January 27, 2014 and the date hereof in connection with the Transaction and such fees, expenses and disbursements shall be deemed Consortium Transaction Expenses and be payable by the Remaining Parties upon consummation of the Transaction or at the time of termination of the Agreement, whichever comes earlier.
 
4.  
In consideration of the covenants, agreements and undertakings of the parties under this Withdrawal Notice, upon the effectiveness of this Withdrawal Notice, except for obligations remaining after the effectiveness of the Withdrawal as expressly stated herein, each Withdrawing Party, on behalf of itself and its present and former parents, subsidiaries, affiliates, officers, directors, shareholders, members, successors and assigns (collectively, “Withdrawing Party Releasors”) hereby releases, waives and forever discharges each Remaining Party and each of their respective present and former parents, subsidiaries, affiliates, employees, officers, directors, shareholders, members, agents, representatives, successors and assigns (collectively, “Remaining Party Releasees”) of and from any and all actions, causes of action, suits, losses, liabilities, rights, obligations, costs, expenses, claims, and demands, of every kind and nature whatsoever, whether now known or unknown, foreseen or unforeseen, matured or unmatured (collectively, “Claims”), which any of such Withdrawing Party Releasors ever had, now have, or may have against any of such Remaining Party Releasees by reason of any matter, cause, or thing whatsoever arising out of or relating to the Agreement.
 
5.  
In consideration of the covenants, agreements and undertakings of the parties under this Withdrawal Notice, upon the effectiveness of this Withdrawal Notice, except for obligations remaining after the effectiveness of the Withdrawal as expressly stated herein, each Remaining Party, on behalf of itself and its present and former parents, subsidiaries, affiliates, officers, directors, shareholders, members, successors and assigns (collectively, “Remaining Party Releasors”) hereby releases, waives and forever discharges each Withdrawing Party and each of their respective present and former parents, subsidiaries, affiliates, employees, officers, directors, shareholders, members, agents, representatives, successors and assigns (collectively, “Withdrawing Party Releasees”) of and from any and all Claims which any of such Remaining Party Releasors ever had, now have, or may have against any of such Withdrawing Party Releasees by reason of any matter, cause, or thing whatsoever arising out of or relating to the Agreement.
 
6.  
This Withdrawal Notice shall be governed by, and construed and enforced in accordance with, the laws of the State of New York regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.
 
7.  
This Withdrawal Notice may be executed and delivered (including by facsimile transmission, e-mail of .pdf version or delivery of photographic copy via text message or WeChat) in one or more counterparts, all of which when executed and delivered shall be considered one and the same agreement
 
[Signature Page follows]
 
 
 

 

 
 
IN WITNESS WHEREOF, the parties hereto have caused this withdrawal notice to be executed as of the date first written above by their respective duly authorized officers.


 
PERFECT WORLD CO., LTD.
 
         
         
         
  By:  /s/ Hong Xiao  
    Name:
Hong Xiao
 
    Title: Chief Executive Officer  
 
 
 
 
 
 

 
 
IN WITNESS WHEREOF, the parties hereto have caused this withdrawal notice to be executed as of the date first written above by their respective duly authorized officers.


 
 
FV INVESTMENT HOLDINGS
 
         
         
         
  By:  /s/ TANG Kui  
    Name:
TANG Kui
 
    Title: Director  
 
 
 
 

 
 
 
IN WITNESS WHEREOF, the parties hereto have caused this withdrawal notice to be executed as of the date first written above by their respective duly authorized officers.

 
 
CAP IV ENGAGEMENT LIMITED
 
         
         
         
  By:  /s/ Eric Zhang  
    Name: Eric Zhang  
    Title: Managing Director  
 
 
 
 

 

Acknowledged and agreed:
 
 
 
SHANDA INTERACTIVE ENTERTAINMENT LIMITED
 
           
           
           
  By:  /s/ Tianqiao Chen  
    Name: Tianqiao Chen  
    Title: Director  
           
  Date:   09/01/2014    
 
 
 

 
 
Acknowledged and agreed:
 
 
 
PRIMAVERA CAPITAL (CAYMAN) FUND I L.P.
 
           
 
BY: PRIMAVERA CAPITAL (CAYMAN) GP1 L.P., ITS GENERAL PARTNER
 
           
           
 
BY: PRIMAVERA (CAYMAN) GP1 LTD, ITS GENERAL PARTNER
 
           
  By: /s/ Lawrence Wang  
    Name:
Lawrence Wang
 
    Title:
Authorized Signatory
 
           
  Date:   09/01/2014    
 



Exhibit 7.16
 

 
WITHDRAWAL NOTICE
 
dated as of September 1, 2014
 

Shanda Interactive Entertainment Limited
8 Stevens Road
Singapore 257819
Attention: Ms. Han Li

Orient Finance Holdings (Hong Kong) Limited
28/F-29/F, 100 Queen’s Road Central
Central, Hong Kong
Attention: Ning Guan

Shanghai Buyout Fund L.P.
Room 2802, No. 689 Guangdong Road,
Huangpu District,
Shanghai, China
Attention: Jing Liu

Ningxia Zhongyincashmere International Group Co., Ltd. 
Zhongyin Avenue
The Cashmere Industrial Park, Lingwu
Ningxia Province, China
Attention: Xiaofei Chen
 
Re: Withdrawal from the Consortium
 
Reference is made to the Consortium Agreement (as amended and supplemented, the “Agreement”) dated as of January 27, 2014 by and between Shanda Interactive Entertainment Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands (“Shanda Interactive”) and Primavera Capital (Cayman) Fund I L.P., a limited partnership organized under the laws of the Cayman Islands (the “Withdrawing Party”), to which Orient Finance Holdings (Hong Kong) Limited, a company limited by shares incorporated and existing under the laws of Hong Kong (“Orient Finance”), Shanghai Buyout Fund L.P. , a limited partnership formed under the laws of the People’s Republic of China (“Haitong”) and Ningxia Zhongyincashmere International Group Co., Ltd. , a company formed under the laws of People’s Republic of China (Zhongyincashmere) joined as party on September 1, 2014. Capitalized terms used but not defined herein shall have the meanings ascribed to them under the Agreement.
 
1.
The Withdrawing Party hereby withdraws from the Consortium.  The withdrawal by the Withdrawing Party from the Consortium (the “Withdrawal”) will become effective upon the counter-signing of this Withdrawal Notice by each of Shanda Interactive, Orient Finance, Haitong and Zhongyincashmere (collectively, the “Remaining Parties”).
 
 
 

 
 
2.
Upon the effectiveness of the Withdrawal, the Withdrawing Party shall cease to be a party to the Agreement and shall not be liable to any Remaining Party under or in relation to the Agreement, whether in respect of actions taken by the Withdrawing Party prior to, on or after the date of this Withdrawal Notice; provided that the provisions of Section 6.2 (Confidentiality) of the Agreement shall remain in full force and effect and continue to bind the Withdrawing Party.
 
3.
Upon the effectiveness of the Withdrawal, each Remaining Party shall cease to be liable to the Withdrawing Party under or in relation to the Agreement, whether in respect of actions taken by such Remaining Party prior to, on or after the date of this Withdrawal Notice; provided that (i) the provisions of Section 6.2 (Confidentiality) of the Agreement shall remain in full force and effect and continue to bind the Remaining Parties and (ii) the Remaining Parties shall pay, on behalf of the Withdrawing Party, the reasonable fees, expenses and disbursements of advisors (including, for the avoidance of doubt, Clifford Chance, Commerce and Finance Law Offices, KPMG, Latham & Watkins, McKinsey & Company and Shin & Kim) incurred by the Withdrawing Party on behalf of and for the benefit of the Consortium between January 27, 2014 and the date hereof in connection with the Transaction and such fees, expenses and disbursements shall be deemed Consortium Transaction Expenses and be payable by the Remaining Parties upon consummation of the Transaction or at the time of termination of the Agreement, whichever comes earlier.
 
4.
In consideration of the covenants, agreements and undertakings of the parties under this Withdrawal Notice, upon the effectiveness of this Withdrawal Notice, except for obligations remaining after the effectiveness of the Withdrawal as expressly stated herein, the Withdrawing Party, on behalf of itself and its present and former parents, subsidiaries, affiliates, officers, directors, shareholders, members, successors and assigns (collectively, “Withdrawing Party Releasors”) hereby releases, waives and forever discharges each Remaining Party and each of their respective present and former parents, subsidiaries, affiliates, employees, officers, directors, shareholders, members, agents, representatives, successors and assigns (collectively, “Remaining Party Releasees”) of and from any and all actions, causes of action, suits, losses, liabilities, rights, obligations, costs, expenses, claims, and demands, of every kind and nature whatsoever, whether now known or unknown, foreseen or unforeseen, matured or unmatured (collectively, “Claims”), which any of such Withdrawing Party Releasors ever had, now have, or may have against any of such Remaining Party Releasees by reason of any matter, cause, or thing whatsoever arising out of or relating to the Agreement.
 
5.
In consideration of the covenants, agreements and undertakings of the parties under this Withdrawal Notice, upon the effectiveness of this Withdrawal Notice, except for obligations remaining after the effectiveness of the Withdrawal as expressly stated herein, each Remaining Party, on behalf of itself and its present and former parents, subsidiaries, affiliates, officers, directors, shareholders, members, successors and assigns (collectively, “Remaining Party Releasors”) hereby releases, waives and forever discharges the Withdrawing Party and each of its respective present and former parents, subsidiaries, affiliates, employees, officers, directors, shareholders, members, agents, representatives, successors and assigns (collectively, “Withdrawing Party Releasees”) of and from any and all Claims which any of such Remaining Party Releasors ever had, now have, or may have against any of such Withdrawing Party Releasees by reason of any matter, cause, or thing whatsoever arising out of or relating to the Agreement.
 
6.
This Withdrawal Notice shall be governed by, and construed and enforced in accordance with, the laws of the State of New York regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.
 
 
 

 
 
7.
This Withdrawal Notice may be executed and delivered (including by facsimile transmission, e-mail of .pdf version or delivery of photographic copy via text message or WeChat) in one or more counterparts, all of which when executed and delivered shall be considered one and the same agreement
 
 
[Signature Page follows]
 
 
 

 
 
 
IN WITNESS WHEREOF, the parties hereto have caused this withdrawal notice to be executed as of the date first written above by their respective duly authorized officers.
 
 
  PRIMAVERA CAPITAL (CAYMAN) FUND I L.P.  
         
  BY: PRIMAVERA CAPITAL (CAYMAN) GP1 L.P., ITS GENERAL PARTNER  
         
  BY: PRIMAVERA (CAYMAN) GP1 LTD, ITS GENERAL PARTNER  
         
         
  By:  /s/ Lawrence Wang  
   
Name:
Lawrence Wang  
   
Title:
Authorized Signatory  
 
 
 
[Signature Page to Withdrawal Notice]
 
 

 
 
Acknowledged and agreed:
 
 
SHANDA INTERACTIVE ENTERTAINMENT LIMITED
 
           
           
           
  By:  /s/ Tianqiao Chen  
   
Name:
Tianqiao Chen  
   
Title:
Director  
           
  Date:  09/01/2014    
 
[Signature Page to Withdrawal Notice]
 
 

 
 
Acknowledged and agreed:
 

 
ORIENT FINANCE HOLDINGS (HONG KONG) LIMITED
 
           
           
           
  By:  /s/ Ning Guan  
   
Name:
Ning Guan  
   
Title:
Chief Executive Officer  
           
  Date:  09/01/2014    
 
 
[Signature Page to Withdrawal Notice]
 
 

 
 
 
Acknowledged and agreed:
 
 

 
SHANGHAI BUYOUT FUND L.P.
 
           
 
BY: HAITONG M&A CAPITAL MANAGEMENT (SHANGHAI) CO., LTD. , its general partner
 
           
           
  By:  /s/ Yanhua Yang  
   
Name:
Yanhua Yang  
   
Title:
Chairman of the Board  
           
  Date:   09/01/2014    
 
[Signature Page to Withdrawal Notice]
 
 

 
 
Acknowledged and agreed:
 

 
NINGXIA ZHONGYINCASHMERE INTERNATIONAL GROUP CO., LTD.
 
           
 
BY: HAITONG M&A CAPITAL MANAGEMENT (SHANGHAI) CO., LTD. , its general partner
 
           
           
  By:  /s/ Shengming Ma  
   
Name:
Shengming Ma  
   
Title:
Chairman of the Board  
           
  Date:   09/01/2014    
 
[Signature Page to Withdrawal Notice]
 
 



Exhibit 7.17
 
 
CONSENT AND RELEASE
 
dated as of September 1, 2014
 
Reference is made to (i) that certain share purchase agreement dated as of January 27, 2014 (the “PV Share Purchase Agreement”) by and between Shanda SDG Investment Limited (the “Seller”) and Primavera Capital (Cayman) Fund I L.P. (“PV”) and (ii) that certain share purchase agreement dated as of April 18, 2014 (the “PW Share Purchase Agreement”) by and between the Seller and Perfect World Co., Ltd. (“PW”).
 
Whereas, pursuant to the PV Share Purchase Agreement, Mage Capital Limited, a British Virgin Islands corporation and an indirect wholly-owned subsidiary of PV, purchased 28,959,276 Class A ordinary shares of Shanda Games Limited (the “PV Sale Shares”) from the Seller.
 
Whereas, pursuant to the PW Share Purchase Agreement, PW purchased 30,326,005 Class A ordinary shares of Shanda Games Limited (the “PW Sale Shares”) from the Seller.
 
Whereas, PV, PW and Shanghai Buyout Fund L.P. , a limited partnership formed under the laws of the People’s Republic of China entered into a share purchase agreement (the “Haitong SPA”) dated as of September 1, 2014, pursuant to which PV intends to sell the PV Sale Shares, and PW intends to sell the PW Sale Shares, to Shanghai Buyout Fund L.P.
 
NOW, THEREFORE, in consideration of the premises set forth above and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
 
 
1.
Effective upon consummation of the transactions contemplated by the Haitong SPA, (i) all remaining obligations, whether actual or contingent, of PV and its affiliates under the PV Share Purchase Agreement, and PW and its affiliates under the PW Share Purchase Agreement, as applicable, shall automatically terminate; and (ii) all remaining obligations, whether actual or contingent, of the Seller and its affiliates under the PV Share Purchase Agreement and the PW Share Purchase Agreement shall automatically terminate.
 
 
2.
In consideration of the covenants, agreements and undertakings of the parties under this Consent and Release, effective upon the consummation of the transactions contemplated by the Haitong SPA, the Seller, on behalf of itself and its present and former parents, subsidiaries, affiliates, officers, directors, shareholders, members, successors and assigns (collectively, "Seller Releasors") hereby releases, waives and forever discharges PV, PW and each of their respective present and former parents, subsidiaries, affiliates, employees, officers, directors, shareholders, members, agents, representatives, successors and assigns (collectively, " PV/PW Releasees") of and from any and all actions, causes of action, suits, losses, liabilities, rights, obligations, costs, expenses, claims, and demands, of every kind and
 
 
 

 
 
 
 
nature whatsoever, whether now known or unknown, foreseen or unforeseen, matured or unmatured (collectively, "Claims"), which any of such Seller Releasors ever had, now have, or may have against any of such PV/PW Releasees by reason of any matter, cause, or thing whatsoever arising out of or relating to the PV Share Purchase Agreement or the PW Share Purchase Agreement.
 
 
3.
In consideration of the covenants, agreements and undertakings of the parties under this Consent and Release, effective upon the consummation of the transactions contemplated by the Haitong SPA, PV, on behalf of itself and its present and former parents, subsidiaries, affiliates, officers, directors, shareholders, members, successors and assigns (collectively, "PV Releasors") hereby releases, waives and forever discharges the Seller and each of its present and former parents, subsidiaries, affiliates, employees, officers, directors, shareholders, members, agents, representatives, successors and assigns (collectively, "Seller Releasees") of and from any and all Claims which any of such PV Releasors ever had, now have, or may have against any of such Seller Releasees by reason of any matter, cause, or thing whatsoever arising out of or relating to the PV Share Purchase Agreement.
 
 
4.
In consideration of the covenants, agreements and undertakings of the parties under this Consent and Release, effective upon the consummation of the transactions contemplated by the Haitong SPA, PW, on behalf of itself and its present and former parents, subsidiaries, affiliates, officers, directors, shareholders, members, successors and assigns (collectively, "PW Releasors") hereby releases, waives and forever discharges the Seller Releasees of and from any and all Claims which any of such PW Releasors ever had, now have, or may have against any of such Seller Releasees by reason of any matter, cause, or thing whatsoever arising out of or relating to the PW Share Purchase Agreement.
 
 
5.
This Consent and Release shall be governed by, and construed and enforced in accordance with, the laws of the State of New York regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.
 
 
6.
This Consent and Release may be executed and delivered (including by facsimile transmission, e-mail of .pdf version or delivery of photographic copy via text message or WeChat) in one or more counterparts, all of which when executed and delivered shall be considered one and the same agreement.
 
 [Signature Page follows]
 
 
 

 
 
 
IN WITNESS WHEREOF, the parties hereto have caused this consent and release to be executed as of the date first written above by their respective duly authorized officers.
 
 
 
SHANDA SDG INVESTMENT LIMITED
 
       
       
       
  By:  /s/ Tianqiao Chen  
  Name: Tianqiao Chen  
  Title: Director  

 
 

 

 
IN WITNESS WHEREOF, the parties hereto have caused this consent and release to be executed as of the date first written above by their respective duly authorized officers.
 
 
 
PRIMAVERA CAPITAL (CAYMAN) FUND I L.P.
 
         
 
BY: PRIMAVERA CAPITAL (CAYMAN) GP1 L.P., ITS GENERAL PARTNER
 
         
 
BY: PRIMAVERA (CAYMAN) GP1 LTD, ITS GENERAL PARTNER
 
         
  By:  /s/ Lawrence Wang  
    Name: Lawrence Wang  
    Title: Authorized Signatory  
 
 
 

 
 
 
IN WITNESS WHEREOF, the parties hereto have caused this consent and release to be executed as of the date first written above by their respective duly authorized officers.
 
 
 
 
PERFECT WORLD CO., LTD.
 
         
         
         
  By:  /s/ Hong Xiao  
    Name: Hong Xiao  
    Title: Chief Executive Officer  
 
 

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