Exhibit 10.23


 


Exclusive Option Agreement


 


This
Exclusive Option Agreement (this “Agreement”) is executed by and among the following Parties as of July 31, 2008 in
Beijing, People’s Republic of China (“PRC”):


 


Party A:       ChinaCache Network Technology (Beijing) Co., Ltd., a wholly owned foreign enterprise incorporated and
existing under the laws of the PRC,
with its address at Floor 6, Tower A, Galaxy Plaza, No.10 Jiu Xian Qiao Middle
Road, Chaoyang District, 100016, Beijing;


 


Party B:       Huiling Ying,
a citizen of PRC with Chinese Identification No.:           ; and


 


Party C:       Beijing Jingtian Technology Co., Ltd., a wholly owned foreign
enterprise incorporated and existing under the laws of the PRC, with its address at  807, Tower D, No.9 Shang Di Third Street, Haidian
District, Beijing


 


In
this Agreement, each of Party A, Party B and Party C shall be referred to as a “Party” respectively, and they shall be
collectively referred to as the “Parties”.


 


Whereas:


 


1.      Party B holds 50% of the equity interest in Party C;


 


2.      Party
A and Party B executed a  Loan
Agreement
on July 31, 2008, under which Party A
provides a loan of RMB50,000 to Party B to acquire 50% of the equity interest
of Party C.


 


Now
therefore, upon mutual discussion and negotiation, the Parties have reached the
following agreement:


 


1.      Sale and
Purchase of Equity Interest


 


1.1        Grant
of Right


 


In
consideration of the payment  by Party A of RMB10, the receipt and sufficiency of which is
hereby acknowledged by Party B, Party
B hereby irrevocably grants Party A an irrevocable and
exclusive right to purchase, or designate one or more
persons (each, a “Designee”) to purchase  the equity interests in Party C then held by Party B once or at multiple times
at any time in part or in whole at Party A’s sole and absolute discretion to
the extent permitted by Chinese laws and at the price described in Section 1.3
herein (such right being the “Equity Interest Purchase Option”). Except for
Party A and the Designee(s), no other person shall be entitled to the Equity
Interest Purchase Option or other rights with respect to the equity interests
of Party B. Party C hereby agrees to the grant by Party B of the Equity
Interest Purchase Option to Party A. The term “person” as used herein shall
refer to


 


1

















 


individuals,
corporations, partnerships, partners, enterprises, trusts or non-corporate organizations.


 


1.2     Steps
for Exercise of Equity Interest Purchase Option


 


Subject
to the provisions of the laws and regulations of China, Party A may exercise
the Equity Interest Purchase Option by issuing a written notice to Party B (the
“Equity Interest Purchase Option Notice”), specifying:  (a) Party A’s decision to exercise the
Equity Interest Purchase Option; (b) the
portion of equity interests to be purchased from Party B (the “Optioned
Interests”); and (c) the date for purchasing the Optioned Interests and/or the date for transfer of
the Optioned Interests.


 


1.3     Equity
Interest Purchase Price


 


The
purchase price for the Optioned Interest shall be RMB10 (“Base Purchase Price”).  If an
appraisal is required by the laws of China applicable to the Equity Interest
Purchase Option when exercised by Party A, the parties shall
determine such based on the principle of good faith, and shall make necessary
adjustment to the purchase price based on the appraisal to comply with any
applicable PRC laws (collectively, the “Equity
Interest Purchase Price”)


 


1.4     Transfer
of Optioned Interests


 


For each exercise of the Equity Interest
Purchase Option:


 


1.4.1        Party B, as a
shareholder, shall transfer the Optioned Interest to Party A and/or Designee,
the decision of which shall be in writing, and shall be signed by Party B and
be kept with Party C;


 


1.4.2        Party B shall execute
share transfer agreement for each transfer with Party A and/or Designee (when
applicable) in accordance with this Agreement and the Equity Interest Purchase Option Notice;


 


1.4.3        Before exercising the
Equity Interest Purchase Option, Party A shall obtain relevant shareholders’
resolution signed by Party C’s shareholders, which shall expressly approve such
share transfer.  Party B shall cause such
resolution to be signed and passed;


 


1.4.4        The relevant Parties
shall execute all other necessary contracts, agreements or documents, obtain
all necessary government licenses and permits and take all necessary actions to
transfer valid ownership of the Optioned Interests to Party A and/or the
Designee(s), unencumbered by any security interests, and cause Party A and/or
the Designee(s) to become the registered owner(s) of the Optioned
Interests. For the purpose of this Section and this Agreement, “security
interests” shall include securities, mortgages, third party’s rights or
interests, any stock options, acquisition right, right of first refusal, right to
offset, ownership retention or other


 


2

















 


security arrangements, but shall be deemed to
exclude any security interest created by this Agreement and Party B’s Share
Pledge Agreement. “Party B’s Share Pledge Agreement” as used in this Section and
this Agreement shall refer to the Share Pledge Agreement (“Share Pledge
Agreement”) executed by and among Party A, Party B and Party C as of the date
hereof, whereby Party B pledges all of its equity interests in Party C to Party
A, in order to guarantee Party C’s performance of its obligations under the
Exclusive Business Corporation Agreement executed by and between Party C and
Party A.


 


1.5        Upon
exercise of the Equity Interest Purchase Option by Party A, if Party B as borrower has not fully repaid to
Party A the loan under the Loan Agreement, the outstanding amount of the loan
owed by Party B to Party A shall be used to make payment of the Equity Interest
Purchase Price, in which case Party A shall not be required to pay any
additional Equity Interest Purchase Price to Party B, and Party B’s outstanding
loan shall be cancelled.


 


2.      Covenants


 


2.1        Covenants
regarding Party C


 


Party B (as the shareholders of Party C) and
Party C hereby covenant as follows:


 


2.1.1       Without the prior written
consent of Party A, they shall not in any manner supplement, change or amend the articles of association and bylaws of Party C,
increase or decrease its registered capital, or change its structure of
registered capital in other manners;


 


2.1.2       They shall maintain Party
C’s corporate existence in accordance with good financial and business
standards and practices by prudently and effectively operating its business and
handling its affairs;


 


2.1.3       Without the prior written
consent of Party A, they shall not at any time following the date hereof, sell,
transfer, mortgage or dispose of in any manner any assets of Party C or legal
or beneficial interest in the business or revenues of Party C, or allow the
encumbrance thereon of any security interest;


 


2.1.4       Without the prior written
consent of Party A, they shall not incur, inherit, guarantee or suffer the
existence of any debt, except for (i) debts incurred in the ordinary
course of business other than through loans; and (ii) debts disclosed to
Party A for which Party A’s written consent has been obtained;


 


3

















 


2.1.5       They shall always operate
all of Party C’s businesses during the ordinary course of business to maintain
the asset value of Party C and refrain from any action/omission that may affect
Party C’s operating status and asset value;


 


2.1.6       Without the prior written
consent of Party A, they shall not cause Party C to execute any major contract,
except the contracts in the ordinary course of business (for purpose of this
subsection, a contract with a value exceeding RMB500,000 shall be deemed a
major contract);


 


2.1.7      Without the prior written
consent of Party A, they shall not cause Party C to provide any person with any
loan or credit;


 


2.1.8       They shall provide Party
A with information on Party C’s business operations and financial condition at
Party A’s request;


 


2.1.9       If requested by Party A,
they shall procure and maintain insurance in respect of Party C’s assets and
business from an insurance carrier acceptable to Party A, at an amount and type
of coverage typical for companies that operate similar businesses;


 


2.1.10     Without the prior written
consent of Party A, they shall not cause or permit Party C to merge,
consolidate with, acquire or invest in any person;


 


2.1.11     They shall immediately
notify Party A of the occurrence or possible occurrence of any litigation,
arbitration or administrative proceedings relating to Party C’s assets,
business or revenue;


 


2.1.12     To maintain the ownership
by Party C of all of its assets, they shall execute all necessary or
appropriate documents, take all necessary or appropriate actions and file all
necessary or appropriate complaints or raise necessary and appropriate defenses
against all claims;


 


2.1.13     Without the prior written
consent of Party A, they shall ensure that Party C shall not in any manner
distribute dividends to its shareholders, provided that upon Party A’s written
request, Party C shall immediately distribute all distributable profits to its
shareholders; and


 


2.1.14     At the request of Party
A, they shall appoint any persons designated by Party A as directors of Party
C.


 


2.2        Covenants
of Party
B and Party C


 


Party B hereby covenants as follows:


 


4

















 


2.2.1       Without the prior written
consent of Party A, Party B shall not sell, transfer, mortgage or dispose of in
any other manner any legal or beneficial interest in the equity interests in
Party C held by Party B, or allow the encumbrance thereon of any security
interest, except for the pledge placed on these equity interests in accordance
with Party B’s Share Pledge Agreement;


 


2.2.2       Party B shall cause the
shareholders’ meeting and/or the board of directors of Party C not to approve
the sale, transfer, mortgage or disposition in any other manner of any legal or
beneficial interest in the equity interests in Party C held by Party B, or
allow the encumbrance thereon of any security interest, without the prior
written consent of Party A, except for the pledge placed on these equity
interests in accordance with Party B’s Share Pledge Agreement;


 


2.2.3       Party B shall cause the
shareholders’ meeting or the board of directors of Party C not to approve the
merger or consolidation with any person, or the acquisition of or investment in
any person, without the prior written consent of Party A;


 


2.2.4       Party B shall immediately
notify Party A of the occurrence or possible occurrence of any litigation,
arbitration or administrative proceedings relating to the equity interests in
Party C held by Party B;


 


2.2.5       Party B shall cause the
shareholders’ meeting or the board of directors of Party C to vote their
approval of the transfer of the Optioned Interests as set forth in this
Agreement and to take any and all other actions that may be requested by Party
A;


 


2.2.6       To the extent necessary
to maintain Party B’s ownership in Party C, Party B shall execute all necessary
or appropriate documents, take all necessary or appropriate actions and file
all necessary or appropriate complaints or raise necessary and appropriate
defenses against all claims;


 


2.2.7       Party B shall appoint any
designee of Party A as director of Party C, at the request of Party A;


 


2.2.8       At the request of Party A
at any time, Party B shall promptly and unconditionally transfer its equity
interests in Party C to Party A’s Designee(s) in accordance with the
Equity Interest Purchase Option under this Agreement, and Party B hereby waives
its right of first refusal to the share transfer by the other existing shareholder
of Party C (if any); and


 


2.2.9       Party B shall strictly
abide by the provisions of this Agreement and other contracts jointly or
separately executed by and among Party B, Party C and Party A, perform the
obligations hereunder and


 


5

















 


thereunder, and refrain from any action/omission
that may affect the effectiveness and enforceability thereof. To the extent
that Party B has any remaining rights with respect to the equity interests
subject to this Agreement or under the Share Pledge Agreement of Party B or
under the Power of Attorney granted in favor of Party A, Party B shall not
exercise such rights except in accordance with the written instructions of
Party A.


 


3.      Representations and
Warranties


 


Party B and Party C hereby represent and
warrant to Party A, jointly and severally, as of the date of this Agreement and
each date of transfer of the Optioned Interests, that:


 


3.1        They
have the authority to execute and deliver this Agreement and any share transfer
contracts to which they are a party concerning the Optioned Interests to be
transferred thereunder (each, a “Transfer Contracts”), and to perform their
obligations under this Agreement and any Transfer Contracts. Party B and Party
C agree to enter into Transfer Contracts consistent with the terms of this
Agreement upon Party A’s exercise of the Equity
Interest Purchase Option. This Agreement and the Transfer Contracts to which they are a party constitute
or will
constitute their legal, valid and binding obligations and shall be enforceable
against them in accordance with the provisions thereof;


 


3.2        The
execution and delivery of this Agreement or any Transfer Contracts and the obligations under this Agreement or
any Transfer Contracts shall not: (i) cause any violation of any applicable laws of
China; (ii) be inconsistent with the articles
of association, bylaws or other
organizational documents of Party C; (iii) cause the violation of any contracts or instruments to
which they are a party or which are binding on them, or constitute any breach
under any contracts or instruments to which they are a party or which are
binding on them; (iv) cause any violation of any condition for the grant
and/or continued effectiveness of any licenses or permits issued to either of
them; or (v) cause the suspension or revocation of or imposition of
additional conditions to any licenses or permits issued to either of them;


 


3.3        Party
B has a good and merchantable title to the equity interests in Party C he holds.
Except for Party B’s Share Pledge Agreement, Party B has not placed any
security interest on such equity interests;


 


3.4        Party
C has a good and merchantable title to all of its assets, and has not placed any security interest on the aforementioned assets;


 


6

















 


3.5        Party
C does not have any outstanding debts, except for (i) debt incurred in the
ordinary course of business; and (ii) debts disclosed to Party A for which
Party A’s written consent has been obtained.


 


3.6        Party
C has complied with all laws and regulations of China applicable to asset
acquisitions; and


 


3.7        There
are no pending or threatened litigation, arbitration or administrative proceedings relating to the
equity interests in Party C, assets of Party C  or Party C.


 


4.      Effective Date


 


This Agreement shall become effective upon the date
hereof, and remain effective for a term of 10 years, and may be renewed for an additional10
years at Party A’s election.


 


5.      Governing Law and Resolution
of Disputes


 


5.1        Governing law


 


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


 


5.2        Methods of Resolution of Disputes


 


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 Parties 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, and the language used in arbitration shall be Chinese. The
arbitration award shall be final and binding on all Parties.


 


6.      Taxes and Fees


 


Each Party shall pay any and all transfer and
registration tax, expenses and fees incurred
thereby or levied thereon in accordance with the laws of China in connection
with the preparation and execution of this Agreement and the Transfer Contracts,
as well as the consummation of the transactions contemplated under this Agreement
and the Transfer Contracts.


 


7.      Notices


 


7.1        All
notices and other communications required or permitted to be given pursuant to
this Agreement shall be delivered personally or sent by registered mail,
postage prepaid, by a commercial courier service or by


 


7

















 


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 notices shall be deemed to
have been effectively given shall be determined as follows:


 


7.1.1          Notices given by personal delivery, by courier service or by registered
mail, postage prepaid, shall be deemed effectively given on the date of
delivery or refusal at the address specified for notices.


 


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


 


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


 


Party A: Floor 6, Tower A, Galaxy Plaza, No.10 Jiu
Xian Qiao Middle Road, Chaoyang District, 100016, Beijing

Fax: + 8610-6437 4251


 


Party
B: Floor 6, Tower A, Galaxy Plaza, No.10 Jiu
Xian Qiao Middle Road, Chaoyang District, 100016, Beijing

Fax: + 8610-6437 4251


 


Party
C: 807, Tower D, No.9 Shang Di Third Street, Haidian District, Beijing

Fax:


 


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


 


8.      Confidentiality


 


The
Parties acknowledge that any oral or written information exchanged among them
with respect to this Agreement is confidential information. Each Party shall
maintain the confidentiality of all such information, and without obtaining the
written consent of other Parties, it shall not disclose any relevant
information to any third parties, except in the following circumstances: (a) such
information is or will be in the public domain (provided that this is not the
result of a public disclosure by the receiving Party); (b) information
disclosed as required by applicable laws or rules or regulations of any
stock exchange; or (c) information required to be disclosed by any Party
to its legal counsel or financial advisor regarding the transaction contemplated
hereunder, and such legal counsel or financial advisor are also bound by
confidentiality duties similar to the duties in this Section. Disclosure of any
confidential information by the staff members or agency hired by any Party
shall be deemed disclosure of such confidential information by such Party,
which Party shall be held liable for breach of this


 


8

















 


Agreement.
This Section shall survive the termination of this Agreement for any
reason.


 


9.      Further Warranties


 


The
Parties agree to promptly execute documents that are reasonably required for or
are conducive to the implementation of the provisions and purposes of this
Agreement and take further actions that are reasonably required for or are
conducive to the implementation of the provisions and purposes of this
Agreement.


 


10.    Miscellaneous


 


10.1         Amendment, change and supplement


 


Any
amendment, change and supplement to this Agreement shall require the execution
of a written agreement by all of the Parties.


 


10.2         Entire agreement


 


Except
for the amendments, supplements or changes in writing executed after the
execution of this Agreement, this Agreement shall constitute the entire
agreement reached by and among the Parties hereto with respect to the subject
matter hereof, and shall supercede all prior oral and written consultations,
representations and contracts reached with respect to the subject matter of
this Agreement.


 


10.3         Headings


 


The
headings of this Agreement are for convenience only, and shall not be used to
interpret, explain or otherwise affect the meanings of the provisions of this
Agreement.


 


10.4         Language


 


This
Agreement is written in Chinese in three copies, each Party having one copy
with equal legal validity.


 


10.5         Severability


 


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 and 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.


 


9

















 


10.6         Successors


 


Party
A is entitled to transfer its rights and obligations under this Agreement to
third parties on its own discretion, without the need to obtain prior consent
of Party B and Party C; without Party A’s prior written consent, Party B and
Party C shall not transfer their rights and obligations under this Agreement to
third parties. This Agreement shall be binding on and shall inure to the
interest of the respective successors of the Parties and the permitted assigns
of such Parties.


 


10.7         Survival


 


10.7.1      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.


 


10.7.2      The provisions of
Sections 5, 7, 8 and this Section 10.7 shall survive the termination of
this Agreement.


 


10.8         Waivers


 


Any Party may waive the terms and conditions of
this Agreement, provided that such a waiver must be provided in writing and
shall require the signatures of the Parties. No waiver by any Party in certain
circumstances with respect to a breach by other Parties shall operate as a
waiver by such a Party with respect to any similar breach in other
circumstances.


 


10

















 


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


 


 


Party A: ChinaCache Network Technology (Beijing) Co., Ltd.


 


 


	
  By:

  	
      /s/ Song Wang

  	
   

  
	
  Name: Song Wang

  	
   

  
	
  Title: Legal Representative

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Party B: Huiling Ying

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/ Huiling Ying

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Party C: Beijing Jingtian
  Technology Co., Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
        /s/
  Xinxin Zheng

  	
   

  
	
  Name: Xinxin Zheng

  	
   

  
	
  Title: Legal
  Representative

  	
   

  



 


11














 


Exclusive Option Agreement


 


This
Exclusive Option Agreement (this “Agreement”) is executed by and among the following Parties as of July 31, 2008 in
Beijing, People’s Republic of China (“PRC”):


 


Party A:                     ChinaCache Network Technology (Beijing) Co., Ltd., a wholly owned foreign enterprise incorporated and
existing under the laws of the PRC,
with its address at Floor 6, Tower A, Galaxy Plaza, No.10 Jiu Xian Qiao Middle
Road, Chaoyang District, 100016, Beijing;


 


Party B:                      Xinxin Zheng,
a citizen of PRC with Chinese Identification No.:           ; and


 


Party C:                     Beijing Jingtian Technology Co., Ltd.,
a wholly owned foreign enterprise incorporated and existing under the laws of
the PRC, with its address at  807, Tower D, No.9
Shang Di Third Street, Haidian District, Beijing


 


In
this Agreement, each of Party A, Party B and Party C shall be referred to as a “Party” respectively, and they shall be
collectively referred to as the “Parties”.


 


Whereas:


 


1.                   Party B holds 50% of the equity interest in Party C;


 


2.                   Party
A and Party B executed a  Loan
Agreement
on July 31, 2008, under which Party A
provides a loan of RMB50,000 to Party B to acquire 50% of the equity interest
of Party C.


 


Now
therefore, upon mutual discussion and negotiation, the Parties have reached the
following agreement:


 


1.                  Sale and
Purchase of Equity Interest


 


1.1              Grant
of Right


 


In
consideration of the payment  by Party A of RMB10, the receipt and sufficiency of which is
hereby acknowledged by Party B, Party
B hereby irrevocably grants Party A an irrevocable and
exclusive right to purchase, or designate one or more
persons (each, a “Designee”) to purchase  the equity interests in Party C then held by Party B once or at multiple times
at any time in part or in whole at Party A’s sole and absolute discretion to
the extent permitted by Chinese laws and at the price described in Section 1.3
herein (such right being the “Equity Interest Purchase Option”). Except for
Party A and the Designee(s), no other person shall be entitled to the Equity
Interest Purchase Option or other rights with respect to the equity interests
of Party B. Party C hereby agrees to the grant by Party B of the Equity
Interest Purchase Option to Party A. The term “person” as used herein shall
refer to


 

















 


individuals,
corporations, partnerships, partners, enterprises, trusts or non-corporate organizations.


 


1.2               Steps for Exercise of Equity Interest Purchase Option


 


Subject
to the provisions of the laws and regulations of China, Party A may exercise
the Equity Interest Purchase Option by issuing a written notice to Party B (the
“Equity Interest Purchase Option Notice”), specifying:  (a) Party A’s decision to exercise the
Equity Interest Purchase Option; (b) the
portion of equity interests to be purchased from Party B (the “Optioned
Interests”); and (c) the date for purchasing the Optioned Interests and/or the date for transfer of
the Optioned Interests.


 


1.3               Equity Interest Purchase Price


 


The
purchase price for the Optioned Interest shall be RMB10 (“Base Purchase Price”).  If an
appraisal is required by the laws of China applicable to the Equity Interest
Purchase Option when exercised by Party A, the parties shall
determine such based on the principle of good faith, and shall make necessary
adjustment to the purchase price based on the appraisal to comply with any
applicable PRC laws (collectively, the “Equity
Interest Purchase Price”)


 


1.4               Transfer of Optioned Interests


 


For each exercise of the Equity Interest
Purchase Option:


 


1.4.1                       Party B, as a shareholder, shall transfer the Optioned Interest to Party
A and/or Designee, the decision of which shall be in writing, and shall be
signed by Party B and be kept with Party C;


 


1.4.2                       Party B shall execute share transfer agreement for each transfer with
Party A and/or Designee (when applicable) in accordance with this Agreement and
the Equity Interest Purchase Option Notice;


 


1.4.3                       Before exercising the Equity Interest Purchase Option, Party A shall
obtain relevant shareholders’ resolution signed by Party C’s shareholders,
which shall expressly approve such share transfer.  Party B shall cause such resolution to be
signed and passed;


 


1.4.4                       The relevant Parties shall execute all other necessary contracts,
agreements or documents, obtain all necessary government licenses and permits
and take all necessary actions to transfer valid ownership of the Optioned
Interests to Party A and/or the Designee(s), unencumbered by any security
interests, and cause Party A and/or the Designee(s) to become the
registered owner(s) of the Optioned Interests. For the purpose of this Section and
this Agreement, “security interests” shall include securities, mortgages, third
party’s rights or interests, any stock options, acquisition right, right of
first refusal, right to offset, ownership retention or other


 

















 


security arrangements, but shall be deemed to
exclude any security interest created by this Agreement and Party B’s Share
Pledge Agreement. “Party B’s Share Pledge Agreement” as used in this Section and
this Agreement shall refer to the Share Pledge Agreement (“Share Pledge
Agreement”) executed by and among Party A, Party B and Party C as of the date
hereof, whereby Party B pledges all of its equity interests in Party C to Party
A, in order to guarantee Party C’s performance of its obligations under the
Exclusive Business Corporation Agreement executed by and between Party C and
Party A.


 


1.5                       Upon exercise of the Equity Interest Purchase Option by Party A, if Party B as borrower has not fully repaid to
Party A the loan under the Loan Agreement, the outstanding amount of the loan
owed by Party B to Party A shall be used to make payment of the Equity Interest
Purchase Price, in which case Party A shall not be required to pay any
additional Equity Interest Purchase Price to Party B, and Party B’s outstanding
loan shall be cancelled.


 


2.                  Covenants


 


2.1                       Covenants regarding Party C


 


Party B (as the shareholders of Party C) and
Party C hereby covenant as follows:


 


2.1.1                      Without the prior written consent of Party A,
they shall not in any manner supplement,
change or amend the articles of association and bylaws of Party C, increase or decrease its registered capital, or change
its structure of registered capital
in other manners;


 


2.1.2                      They shall maintain Party C’s corporate existence in accordance with
good financial and business standards and practices by prudently and
effectively operating its business and handling its affairs;


 


2.1.3                      Without the prior written consent of Party A, they shall not at any time
following the date hereof, sell, transfer, mortgage or dispose of in any manner
any assets of Party C or legal or beneficial interest in the business or
revenues of Party C, or allow the encumbrance thereon of any security interest;


 


2.1.4                      Without the prior written consent of Party A, they shall not incur,
inherit, guarantee or suffer the existence of any debt, except for (i) debts
incurred in the ordinary course of business other than through loans; and (ii) debts
disclosed to Party A for which Party A’s written consent has been obtained;


 

















 


2.1.5                      They shall always operate all of Party C’s businesses during the
ordinary course of business to maintain the asset value of Party C and refrain
from any action/omission that may affect Party C’s operating status and asset
value;


 


2.1.6                      Without the prior written consent of Party A, they shall not cause Party
C to execute any major contract, except the contracts in the ordinary course of
business (for purpose of this subsection, a contract with a value exceeding
RMB500,000 shall be deemed a major contract);


 


2.1.7                  Without
the prior written consent of Party A, they shall not cause Party C to provide
any person with any loan or credit;


 


2.1.8                      They shall provide Party A with information on Party C’s business
operations and financial condition at Party A’s request;


 


2.1.9                      If requested by Party A, they shall procure and maintain insurance in
respect of Party C’s assets and business from an insurance carrier acceptable
to Party A, at an amount and type of coverage typical for companies that
operate similar businesses;


 


2.1.10                Without
the prior written consent of Party A, they shall not cause or permit Party C to
merge, consolidate with, acquire or invest in any person;


 


2.1.11                They
shall immediately notify Party A of the occurrence or possible occurrence of
any litigation, arbitration or administrative proceedings relating to Party C’s
assets, business or revenue;


 


2.1.12                To
maintain the ownership by Party C of all of its assets, they shall execute all
necessary or appropriate documents, take all necessary or appropriate actions
and file all necessary or appropriate complaints or raise necessary and
appropriate defenses against all claims;


 


2.1.13                Without
the prior written consent of Party A, they shall ensure that Party C shall not
in any manner distribute dividends to its shareholders, provided that upon
Party A’s written request, Party C shall immediately distribute all
distributable profits to its shareholders; and


 


2.1.14                At
the request of Party A, they shall appoint any persons designated by Party A as
directors of Party C.


 


2.2                       Covenants of Party B and Party C


 


Party B hereby covenants as follows:


 

















 


2.2.1                      Without the prior written consent of Party A, Party B shall not sell,
transfer, mortgage or dispose of in any other manner any legal or beneficial
interest in the equity interests in Party C held by Party B, or allow the
encumbrance thereon of any security interest, except for the pledge placed on
these equity interests in accordance with Party B’s Share Pledge Agreement;


 


2.2.2                      Party B shall cause the shareholders’ meeting and/or the board of directors
of Party C not to approve the sale, transfer, mortgage or disposition in any
other manner of any legal or beneficial interest in the equity interests in
Party C held by Party B, or allow the encumbrance thereon of any security
interest, without the prior written consent of Party A, except for the pledge
placed on these equity interests in accordance with Party B’s Share Pledge
Agreement;


 


2.2.3                      Party B shall cause the shareholders’ meeting or the board of directors
of Party C not to approve the merger or consolidation with any person, or the
acquisition of or investment in any person, without the prior written consent
of Party A;


 


2.2.4                      Party B shall immediately notify Party A of the occurrence or possible
occurrence of any litigation, arbitration or administrative proceedings
relating to the equity interests in Party C held by Party B;


 


2.2.5                      Party B shall cause the shareholders’ meeting or the board of directors
of Party C to vote their approval of the transfer of the Optioned Interests as
set forth in this Agreement and to take any and all other actions that may be
requested by Party A;


 


2.2.6                      To the extent necessary to maintain Party B’s ownership in Party C,
Party B shall execute all necessary or appropriate documents, take all
necessary or appropriate actions and file all necessary or appropriate
complaints or raise necessary and appropriate defenses against all claims;


 


2.2.7                      Party B shall appoint any designee of Party A as director of Party C, at
the request of Party A;


 


2.2.8                      At the request of Party A at any time, Party B shall promptly and
unconditionally transfer its equity interests in Party C to Party A’s Designee(s) in
accordance with the Equity Interest Purchase Option under this Agreement, and
Party B hereby waives its right of first refusal to the share transfer by the
other existing shareholder of Party C (if any); and


 


2.2.9                      Party B shall strictly abide by the provisions of this Agreement and
other contracts jointly or separately executed by and among Party B, Party C
and Party A, perform the obligations hereunder and


 

















 


thereunder, and refrain from any action/omission
that may affect the effectiveness and enforceability thereof. To the extent
that Party B has any remaining rights with respect to the equity interests
subject to this Agreement or under the Share Pledge Agreement of Party B or
under the Power of Attorney granted in favor of Party A, Party B shall not
exercise such rights except in accordance with the written instructions of
Party A.


 


3.                  Representations
and Warranties


 


Party B and Party C hereby represent and
warrant to Party A, jointly and severally, as of the date of this Agreement and
each date of transfer of the Optioned Interests, that:


 


3.1                       They have the authority to execute and deliver this Agreement and any
share transfer contracts to which they are a party concerning the Optioned
Interests to be transferred thereunder (each, a “Transfer Contracts”), and to perform
their obligations under this Agreement and any Transfer Contracts. Party B and
Party C agree to enter into Transfer Contracts consistent with the terms of
this Agreement upon Party A’s exercise of the Equity
Interest Purchase Option. This Agreement and the Transfer Contracts to which they are a party constitute
or will
constitute their legal, valid and binding obligations and shall be enforceable
against them in accordance with the provisions thereof;


 


3.2                       The execution and delivery of this Agreement or any Transfer Contracts and the obligations under this Agreement or
any Transfer Contracts shall not: (i) cause any violation of any applicable laws of
China; (ii) be inconsistent with the articles
of association, bylaws or other
organizational documents of Party C; (iii) cause the violation of any contracts or instruments to
which they are a party or which are binding on them, or constitute any breach
under any contracts or instruments to which they are a party or which are
binding on them; (iv) cause any violation of any condition for the grant
and/or continued effectiveness of any licenses or permits issued to either of
them; or (v) cause the suspension or revocation of or imposition of
additional conditions to any licenses or permits issued to either of them;


 


3.3                       Party B has a good and merchantable title to the equity interests in
Party C he holds. Except for Party B’s Share Pledge Agreement, Party B has not
placed any security interest on such equity interests;


 


3.4                       Party C has a good and merchantable title to all of its assets, and has not placed any security interest on the aforementioned assets;


 

















 


3.5                       Party C does not have any outstanding debts, except for (i) debt incurred
in the ordinary course of business; and (ii) debts disclosed to Party A
for which Party A’s written consent has been obtained.


 


3.6                       Party C has complied with all laws and regulations of China applicable
to asset acquisitions; and


 


3.7                       There are no pending or threatened
litigation, arbitration or administrative
proceedings relating to the equity interests in Party
C, assets of Party C  or
Party C.


 


4.                  Effective Date


 


This Agreement shall become effective upon the date
hereof, and remain effective for a term of 10 years, and may be renewed for an additional10
years at Party A’s election.


 


5.                  Governing Law and Resolution
of Disputes


 


5.1                       Governing law


 


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


 


5.2                       Methods of Resolution of Disputes


 


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 Parties 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, and the language used in arbitration shall be Chinese. The
arbitration award shall be final and binding on all Parties.


 


6.                  Taxes and Fees


 


Each Party shall pay any and all transfer and
registration tax, expenses and fees incurred
thereby or levied thereon in accordance with the laws of China in connection
with the preparation and execution of this Agreement and the Transfer Contracts,
as well as the consummation of the transactions contemplated under this
Agreement and the Transfer Contracts.


 


7.                  Notices


 


7.1                       All notices and other communications required or permitted to be given
pursuant to this Agreement shall be delivered personally or sent by 


 

















 


registered mail, postage prepaid, by a
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 notices shall be deemed to
have been effectively given shall be determined as follows:


 


7.1.1                              Notices given by personal delivery, by courier service or by registered
mail, postage prepaid, shall be deemed effectively given on the date of
delivery or refusal at the address specified for notices.


 


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


 


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


 


Party A: Floor 6, Tower A, Galaxy Plaza, No.10 Jiu
Xian Qiao Middle Road, Chaoyang District, 100016, Beijing

Fax: + 8610-6437 4251


 


Party
B: Floor 6, Tower A, Galaxy Plaza, No.10 Jiu
Xian Qiao Middle Road, Chaoyang District, 100016, Beijing

Fax: + 8610-6437 4251


 


Party
C: 807, Tower D, No.9 Shang Di Third Street, Haidian District, Beijing

Fax:


 


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


 


8.                  Confidentiality


 


The
Parties acknowledge that any oral or written information exchanged among them
with respect to this Agreement is confidential information. Each Party shall
maintain the confidentiality of all such information, and without obtaining the
written consent of other Parties, it shall not disclose any relevant
information to any third parties, except in the following circumstances: (a) such
information is or will be in the public domain (provided that this is not the
result of a public disclosure by the receiving Party); (b) information
disclosed as required by applicable laws or rules or regulations of any
stock exchange; or (c) information required to be disclosed by any Party
to its legal counsel or financial advisor regarding the transaction
contemplated hereunder, and such legal counsel or financial advisor are also
bound by confidentiality duties similar to the duties in this Section.
Disclosure of any confidential information by the staff members or agency hired
by any Party shall be deemed disclosure of such confidential information by
such Party, which Party shall be held liable for breach of this


 

















 


Agreement.
This Section shall survive the termination of this Agreement for any
reason.


 


9.                  Further Warranties


 


The
Parties agree to promptly execute documents that are reasonably required for or
are conducive to the implementation of the provisions and purposes of this
Agreement and take further actions that are reasonably required for or are
conducive to the implementation of the provisions and purposes of this
Agreement.


 


10.           Miscellaneous


 


10.1                           Amendment, change and supplement


 


Any
amendment, change and supplement to this Agreement shall require the execution
of a written agreement by all of the Parties.


 


10.2                           Entire agreement


 


Except
for the amendments, supplements or changes in writing executed after the
execution of this Agreement, this Agreement shall constitute the entire
agreement reached by and among the Parties hereto with respect to the subject
matter hereof, and shall supercede all prior oral and written consultations,
representations and contracts reached with respect to the subject matter of
this Agreement.


 


10.3                           Headings


 


The
headings of this Agreement are for convenience only, and shall not be used to
interpret, explain or otherwise affect the meanings of the provisions of this
Agreement.


 


10.4                           Language


 


This
Agreement is written in Chinese in three copies, each Party having one copy
with equal legal validity.


 


10.5                           Severability


 


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 and 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.


 

















 


10.6                           Successors


 


Party
A is entitled to transfer its rights and obligations under this Agreement to
third parties on its own discretion, without the need to obtain prior consent
of Party B and Party C; without Party A’s prior written consent, Party B and
Party C shall not transfer their rights and obligations under this Agreement to
third parties. This Agreement shall be binding on and shall inure to the
interest of the respective successors of the Parties and the permitted assigns
of such Parties.


 


10.7                           Survival


 


10.7.1                  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.


 


10.7.2                  The
provisions of Sections 5, 7, 8 and this Section 10.7 shall survive the
termination of this Agreement.


 


10.8                           Waivers


 


Any Party may waive the terms and conditions of
this Agreement, provided that such a waiver must be provided in writing and
shall require the signatures of the Parties. No waiver by any Party in certain
circumstances with respect to a breach by other Parties shall operate as a
waiver by such a Party with respect to any similar breach in other
circumstances.


 

















 


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


 


 


Party A: ChinaCache Network Technology (Beijing) Co., Ltd.


 


 


	
  By:

  	
      /s/ Song Wang

  	
   

  
	
  Name: Song Wang

  	
   

  
	
  Title: Legal Representative

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Party B: Xinxin Zheng

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/ Xinxin Zheng

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Party C: Beijing Jingtian
  Technology Co., Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
        /s/
  Xinxin Zheng

  	
   

  
	
  Name: Xinxin Zheng

  	
   

  
	
  Title: Legal
  Representative