EX-10.7



 Exhibit 10.7 

Loan Agreement 
 This Loan
Agreement (the “Agreement”) is made and entered into by and between the Parties below as of March 12, 2014 in Beijing, the People’s Republic of China (“China” or the “PRC”): 

 

	(1)	Chuangmeng Wuxian (Beijing) Information & Technology Co., Ltd. (the “Lender”), a wholly foreign-owned enterprise, organized and existing under the laws of the PRC, with its address at Room
1325, Ruicheng Hotel, No.9 Xicui Road, Haidian District, Beijing, China; 

  

	(2)	CHEN Xiangyu (the “Borrower”), a citizen of China with Chinese Identification No.:             . 


The Lender and the Borrower shall each be hereinafter referred to as a “Party” respectively, and they shall be collectively referred
to as the “Parties.” 
 Whereas: 
  

	 	1.	“As of the date hereof, the Borrower holds 100% of equity interests in Shenzhen iDreamSky Technology Co., Ltd. (the “Borrower Company”). All of the equity interest now held and hereafter acquired by the
Borrower in the Borrower Company shall be referred to as the “Borrower Equity Interest;” 

  

	 	2.	The Lender confirms that it provided to the Borrower, and the Borrower confirms that he received from the Borrower, a loan in the amount of RMB 10,000,000 to be used for the purposes set forth under this Agreement.


 After friendly consultation, the Parties agree as follows: 

 

	1	Loan 

  

	 	1.1	The Lender and the Borrower hereby acknowledge and confirm that the Lender provided to the Borrower and the Borrower obtained from the Lender, a loan in the amount of RMB10,000,000 (the “Loan”). The Parties
confirm that the term of the Loan shall be 10 years from the effective date of this Agreement, which may be extended upon mutual written consent of the Parties. During the term of the Loan or the extended term of the Loan, the Borrower shall
immediately repay the full amount of the Loan in the event that any of the following circumstances occur: 

  

	 	1.1.1	30 days elapse after the Borrower receives a written notice from the Lender requesting repayment of the Loan; 

  

	 	1.1.2	The Borrower’s death, lack, or limitation of civil capacity; 

  

	 	1.1.3	The Borrower ceases (for any reason) to be an employee of the Lender, the Borrower Company or their affiliates; 

  

	 	1.1.4	The Borrower engages in or is involved in criminal activities; 

  

	 	1.1.5	According to the applicable laws of China, foreign investors are permitted to invest in the principle business that is currently conducted by the Borrower Company in China with a controlling stake and/or in the form of
wholly foreign-owned enterprises, the relevant competent authorities of China begin to approve such investments, and the Lender exercises the exclusive option under the Exclusive Option Agreement by and among the Lender, the Borrower and the
Borrower Company (the “Exclusive Option Agreement”). 

  

	 	1.2	The Loan provided by the Lender under this Agreement shall inure to the Borrower’s benefit only and not to the Borrower’s successor(s) or assign(s). 









	 	1.3	The Borrower hereby agrees and warrants that he shall use the Loan for paying the registered capital of the Borrower Company. Without the Lender’s prior written consent, the Borrower shall not use the Loan for any
purpose other than as set forth herein. 

  

	 	1.4	The Lender and the Borrower hereby agree and acknowledge that the Borrower’s method of repayment shall be at the sole discretion of the Lender, and shall at the Lender’s option take the form of the
Borrower’s transferring the Borrower Equity Interest in whole to the Lender or the Lender’s designated persons (legal or natural persons) pursuant to the Lender’s exercise of its right to acquire the Borrower Equity Interest under the
Exclusive Option Agreement, and any proceeds from the transfer of the Borrower Equity Interest (to the extent permissible) shall be used by the Borrower to repay the Loan to the Lender, in accordance with this Agreement and in the manner designated
by the Lender. 

  

	 	1.5	The Lender and the Borrower hereby agree and acknowledge that to the extent permitted by the applicable laws, the Lender shall have the right but not the obligation to purchase or designate other persons (legal or
natural persons) to purchase the Borrower Equity Interest in part or in whole at any time, at the price stipulated in the Exclusive Option Agreement. 

  

	 	1.6	The Borrower confirms that he has executed an irrevocable Power of Attorney (the “Power of Attorney”), which authorizes the Lender or a legal or natural person designated by the Lender to exercise all of the
Borrower’s rights as a shareholder of the Borrower Company. 

  

	 	1.7	When the Borrower transfers the Borrower Equity Interest to the Lender or the Lender’s designated person(s), in the event that the transfer price of such equity interest is equal to or lower than the principal of
the Loan under this Agreement, the Loan under this Agreement shall be deemed an interest-free loan. In the event that the transfer price of such equity interest exceeds the principal of the Loan under this Agreement, the excess over the principal
shall be deemed the interest of the Loan under this Agreement payable by the Borrower to the Lender, to the extent permitted by PRC law. 

  

	2	Representations and Warranties 

  

	 	2.1	Between the date of this Agreement and the date of termination of this Agreement, the Lender hereby makes the following representations and warranties to the Borrower: 


 

	 	2.1.1	The Lender is a corporation duly organized and legally existing in accordance with the laws of China; 

  

	 	2.1.2	The Lender has the legal capacity to execute and perform this Agreement. The execution and performance by the Lender of this Agreement is consistent with the Lender’s scope of business and the provisions of the
Lender’s corporate bylaws and other organizational documents, and the Lender has obtained all necessary and proper approvals and authorizations for the execution and performance of this Agreement; and 


 

	 	2.1.3	This Agreement constitutes the Lender’s legal, valid, and binding obligations enforceable in accordance with its terms. 

  

	 	2.2	Between the date of this Agreement and the date of termination of this Agreement, the Borrower hereby makes the following representations and warranties: 


 

	 	2.2.1	The Borrower has the legal capacity to execute and perform this Agreement. The Borrower has obtained all necessary and proper approvals and authorizations for the execution and performance of this Agreement;


  

	 	2.2.2	This Agreement constitutes the Borrower’s legal, valid, and binding obligations enforceable in accordance with its terms; and 


  
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	 	2.2.3	There are no disputes, litigations, arbitrations, administrative proceedings, or any other legal proceedings relating to the Borrower, nor are there any potential disputes, litigations, arbitrations, administrative
proceedings, or any other legal proceedings relating to the Borrower. 

  

	3	Borrower’s Covenants 

  

	 	3.1	As and when he/she becomes, and for so long as he/she remains a shareholder of the Borrower Company, the Borrower irrevocably covenants that during the term of this Agreement, the Borrower shall cause the Borrower
Company: 

  

	 	3.1.1	to strictly abide by the provisions of the Exclusive Option Agreement and the Exclusive Business Cooperation Agreement (the “Exclusive Business Cooperation Agreement”) to which the Borrower Company is a party,
and to refrain from any action/omission that may affect the effectiveness and enforceability of the Exclusive Option Agreement and the Exclusive Business Cooperation Agreement. 


 

	 	3.1.2	at the request of the Lender (or a party designated by the Lender), to execute the contracts/agreements on business cooperation with the Lender (or a party designated by the Lender), and to strictly abide by such
contracts/agreements; 

  

	 	3.1.3	to provide the Lender with all of the information on the Borrower Company’s business operations and financial condition at the Lender’s request; 


 

	 	3.1.4	to immediately notify the Lender of the occurrence or possible occurrence of any litigation, arbitration, or administrative proceedings relating to the Borrower Company’s assets, business, or income;


  

	 	3.1.5	at the request of the Lender, to appoint any persons designated by the Lender as directors of the Borrower Company; 

  

	 	3.2	The Borrower covenants that during the term of this Agreement, he/she shall: 

  

	 	3.2.1	endeavor to keep the Borrower Company engaged in its principle businesses and to keep the specific business scope of its business license; 


 

	 	3.2.2	abide by the provisions of this Agreement, the Power of Attorney, the Equity Interest Pledge Agreement (the “Equity Interest Pledge Agreement”) and the Exclusive Option Agreement to which the Borrower is a
party, perform his/her obligations under this Agreement, the Power of Attorney, the Equity Interest Pledge Agreement and the Exclusive Option Agreement, and refrain from any action/omission that may affect the effectiveness and enforceability of
this Agreement, the Power of Attorney, the Equity Interest Pledge Agreement and the Exclusive Option Agreement; 

  

	 	3.2.3	not sell, transfer, mortgage or dispose of in any other manner the legal or beneficial interest in the Borrower Equity Interest, or allow the encumbrance thereon of any security interest, except in accordance with the
Equity Interest Pledge Agreement; 

  

	 	3.2.4	cause any shareholders’ meeting and/or the board of directors of the Borrower Company to not approve the sale, transfer, mortgage or disposition in any other manner of any legal or beneficial interest in the
Borrower Equity Interest, or allow the encumbrance thereon of any security interest, except to the Lender or the Lender’s designated person; 


  
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	 	3.2.5	cause any shareholders’ meeting and/or the board of directors of the Borrower Company to not approve the merger or consolidation of the Borrower Company with any person, or its acquisition of or investment in any
person, without the prior written consent of the Lender; 

  

	 	3.2.6	immediately notify the Lender of the occurrence or possible occurrence of any litigation, arbitration or administrative proceedings relating to the Borrower Equity Interest; 


 

	 	3.2.7	to the extent necessary to maintain his/her ownership of the Borrower Equity Interest, execute all necessary or appropriate documents, take all necessary or appropriate actions and file all necessary or appropriate
complaints or raise necessary and appropriate defense against all claims; 

  

	 	3.2.8	without the prior written consent of the Lender, refrain from any action/omission that may have a material impact on the assets, business and liabilities of the Borrower Company; 


 

	 	3.2.9	appoint any designee of the Lender as director of the Borrower Company, at the request of the Lender; 

  

	 	3.2.10	to the extent permitted by the laws of China, at the request of the Lender at any time, promptly and unconditionally transfer all of the Borrower Equity Interest to the Lender or the Lender’s designated
representative(s) at any time, and cause the other shareholders of the Borrower Company to waive their right of first refusal with respect to the share transfer described in this Section; 


 

	 	3.2.11	to the extent permitted by the laws of China, at the request of the Lender at any time, cause the other shareholders of the Borrower Company to promptly and unconditionally transfer all of their equity interests to the
Lender or the Lender’s designated representative(s) at any time, and the Borrower hereby waives his/her right of first refusal (if any) with respect to the share transfer described in this Section; 


 

	 	3.2.12	in the event that the Lender purchases the Borrower Equity Interest from the Borrower in accordance with the provisions of the Exclusive Option Agreement, use such purchase price obtained thereby to repay the Loan to
the Lender; and 

  

	 	3.2.13	without the prior written consent of the Lender, not cause the Borrower Company to supplement, change, or amend its articles of association in any manner, increase or decrease its registered capital or change its share
capital structure in any manner. 

  

	4	Liability for Default 

  

	 	4.1	If the Borrower conducts any material breach of any term of this Agreement, the Lender shall have the right to terminate this Agreement and require the Borrower to compensate all damages; this Section 4.1 shall not
prejudice any other rights of the Lender herein. 

  

	 	4.2	The Borrower shall not terminate this Agreement in any event unless otherwise required by the applicable laws. 

  

	 	4.3	In the event that the Borrower fails to perform the repayment obligations set forth in this Agreement, the Borrower shall pay an overdue interest of 0.01% per day for the outstanding payment, until the day the
Borrower repays the full principal of the Loan, overdue interests and other payable amounts. 


  
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	5	Notices 

  

	 	5.1	All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, prepaid postage, commercial courier service or by facsimile
transmission to the address of such Party set forth below. A confirmation copy of each notice shall also be sent by email. The dates on which such notices are deemed to have been effectively given shall be determined as follows: 


 

	 	5.1.1	Notices given by personal delivery, courier service, registered mail or prepaid postage, shall be deemed effectively given on the date of delivery. 


 

	 	5.1.2	Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of the transmission). 


 

	 	5.2	For the purpose of notices, the addresses of the Parties are as follows: 

  

			
	Lender:	  	Chuangmeng Wuxian (Beijing) Information & Technology Co., Ltd.
	Address:	  	Room 1325, Ruicheng Hotel, No.9 Xicui Road, Haidian District, Beijing, China
	Attn:	  	CHEN Xiangyu
	Phone:	  	0755-86110235
	Facsimile:	  	0755-86530126
		
	Borrower:	  	CHEN Xiangyu
	Address:	  	Flat 01, 16/F, Unit 2, Block A, Ke Xing Science Park, Ke Yuan Road, Middle Area of Hi-Tech Park, Nanshan District, Shenzhen.
	Phone:	  	0755-86110235
	Facsimile:	  	0755-86530126

  

	 	5.3	Any Party may at any time change its address for notices by having a notice delivered to the other Party in accordance with the terms hereof. 


 

	6	Confidentiality 

 The Parties acknowledge that the existence and the terms of this
Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance of this Agreement are regarded as confidential information. Each Party shall maintain the confidentiality of all such
confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain
(other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government
authorities; or (c) is required to be disclosed by any Party to its shareholders, directors, employees, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, directors,
employees, legal counsels or financial advisors shall be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the shareholders, director, employees of or agencies engaged
by any Party shall be deemed disclosure of such confidential information by such Party and such Party shall be held liable for breach of this Agreement. 
  

	7	Governing Law and Resolution of Disputes 

  

	 	7.1	The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes shall be governed by the laws of China. 


  
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	 	7.2	In the event of any dispute with respect to the construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an
agreement on the dispute within 30 days after either Party’s request to the other Party for resolution of the dispute through negotiations, either Party may submit the relevant dispute to the China International Economic and Trade Arbitration
Commission for arbitration, in accordance with its then effective arbitration rules. The arbitration shall be conducted in Beijing. The arbitration award shall be final and binding on all Parties. 


 

	 	7.3	Upon the occurrence of any disputes arising from the construction and performance of this Agreement or during the pending arbitration of any dispute, except for the matters under dispute, the Parties to this Agreement
shall continue to exercise their respective rights under this Agreement and perform their respective obligations under this Agreement. 

  

	8	Miscellaneous 

  

	 	8.1	This Agreement should become effective upon execution by the Parties, and shall expire upon the date of full performance by the Parties of their respective obligations under this Agreement. 


 

	 	8.2	This Agreement shall be written in both Chinese and English language in two copies, each Party having one copy. The Chinese version and English version shall have equal legal validity. 


 

	 	8.3	This Agreement may be amended or supplemented through written agreement by and between the Lender and the Borrower. Such written amendment agreement and/or supplementary agreement executed by and between the Lender and
the Borrower are an integral part of this Agreement, and shall have the same legal validity as this Agreement. 

  

	 	8.4	In the event that one or several of the provisions of this Agreement are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability
of the remaining provisions of this Agreement shall not be affected or compromised in any respect. The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the
greatest extent permitted by law the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions. 


 

	 	8.5	The attachments (if any) to this Agreement shall be an integral part of this Agreement and shall have the same legal validity as this Agreement. 


 

	 	8.6	Any obligations that occur or that are due as a result of this Agreement upon the expiration or early termination of this Agreement shall survive the expiration or early termination thereof. The provisions of Sections
4, 6, 7 and this Section 8.6 shall survive the termination of this Agreement. 


  
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 IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Loan
Agreement as of the date firs above written. 
 Lender:     Chuangmeng Wuxian (Beijing) Information & Technology Co., Ltd.

  

			
	[Company seal is affixed.]
		
	By:	 	 /s/ CHEN Xiangyu

	Name:	 	CHEN Xiangyu
	Title:	 	Legal Representative
	
	Borrower: CHEN Xiangyu
		
	By:	 	 /s/ CHEN Xiangyu