Exhibit 10.3


 


EXCLUSIVE
PURCHASE OPTION AGREEMENT


 


This
EXCLUSIVE PURCHASE OPTION AGREEMENT (this “Agreement”), dated July 31, 2019, is made in Tianjin, the People’s
Republic of China (the “PRC”) by and among:


 


Party
A: Chain Cloud Mall Network and Technology (Tianjin) Co., Ltd., a wholly foreign owned company incorporated in the PRC with registered
address at A-19 Zhongguancun Kexin Industrial Park, Shuangjie Town, Beichen District, Tianjin;


 


Party
B: Zeyao Xue; Kai Xu;


 


And


 


Party
C: Chain Cloud Mall E-commerce (Tianjin) Co., Ltd., a limited liability company incorporated and existing under the laws of the
PRC, with registered address at A-19 Zhongguancun Kexin Industrial Park, Shuangjie Town, Beichen District, Tianjin.


 


(Party
A, Party B and Party C individually being referred to as a “Party” and collectively the “Parties”)


 


Whereas,


 


1.
Party C is a limited liability company duly incorporated and validly existing under the PRC laws. Party B has an aggregate holding
of 100% equity interests in Party C, with Zeyao Xue and Kai Xu holding 90% and 10% thereof, respectively;


 


2.
Party A and Party B have made an Equity Pledge Agreement (the “Equity Pledge Agreement”) dated July 31, 2019.


 


NOW,
THEREFORE, the Parties hereby agree as follows through negotiations:


 


1.
Purchase and Sale of Equity Interests


 


1.1
Grant of Right


 


Party
B hereby exclusively and irrevocably grants Party A an exclusive option to purchase or designate one or several person(s) (the
“Designated Person”) to purchase all or any part of the equity interests held by Party B in Party C (the “Purchase
Option”) at any time from Party B at the price specified in Article 1.3 of this Agreement in accordance with the procedures
determined by Party A at its own discretion and to the extent permitted by the PRC laws. No party other than Party A and the Designated
Person may have the Purchase Option. Party C hereby agrees Party B to grant the Purchase Option to Party A. For purpose of this
Section 1.1 and this Agreement, “person” means any individual, corporation, joint venture, partnership, enterprise,
trust or non-corporation organization.


 


1.2
Procedures


 


Party
A may exercise the Purchase Option subject to its compliance with the PRC laws and regulations. Upon exercising the Purchase Option,
Party A will issue a written notice (the “Equity Interest Purchase Notice”) to Party B which notice will specify:
(i) Party A’s decision to exercise the Purchase Option; (ii) the percentage of equity interest to be purchased from Party
B (the “Purchased Equity Interest”); (iii) the date of purchase/equity interest transfer, and (iv) and the purchase
price.


 






     


     


    

 


1.3
Purchase Price


 


1.3.1.
When Party A exercises the Purchase Option, the purchase price of the Purchased Equity Interest


 


(“Purchase
Price”) shall be equal to the registered capital paid by Party B for the Purchased Equity Interest, unless applicable PRC
laws and regulations require appraisal of the Purchased Equity Interest or any other restriction on the Purchase Price.


 


1.3.2.
If applicable PRC laws require appraisal of the Purchased Equity Interest or any other restrictions on the Purchase Price in connection
with exercise of the Purchase Option by Party A, Party A and Party B agree that the Purchase Price of the Purchased Equity Interest
shall be the lowest price permissible under applicable laws.


 


1.4
Transfer of the Purchased Equity Interest


 


When
Party A exercises the Purchase Option:


 


1.4.1.
Party B shall cause Party C to promptly convene a shareholders’ meeting, during which a resolution shall be adopted to approve
transfer of the equity interest to Party A and/or the Designated Person and waiver of its right of first refusal regarding the
Purchased Equity Interest by Party B;


 


1.4.2.
Party B shall enter into an equity interest transfer agreement with Party A and/or the Designated


 


Person
pursuant to the terms and conditions of this Agreement and the Purchase Notice;


 


1.4.3.
The Parties shall execute all other contracts, agreements or documents, obtain all governmental approvals and consents, and conduct
all actions that are necessary to transfer the ownership of the Purchased Equity Interest to Party A and/or the Designated Person
free from any Security Interest and cause Party A and/or the Designated Person to be registered as the owner of the Purchased
Equity Interest. For the purpose of this Section 1.4.3 and this Agreement, “Security Interest” includes guarantees,
mortgages, pledges, third-party rights or interests, any purchase option, right of acquisition, right of first refusal, right
of set-off, ownership detainment or other security arrangements, but excludes any security interest arising from this Agreement
or the Equity Pledge Agreement.


 


1.4.4.
Party B and Party C shall unconditionally use its best efforts to assist Party A in obtaining the governmental approvals, permits,
registrations, filings and complete all formalities necessary for the transfer of the Purchased Equity Interest.


 


2.
Covenants regarding the Equity Interest


 


2.1
Party C hereby covenants that:


 


2.1.1
Without prior written consent by Party A, it will not supplement, change or amend the Articles of


 


Association,
increase or decrease the registered capital, or otherwise change the registered capital structure of Party C;


 






    2


     


    

 


2.1.2
It will maintain due existence of Party C, prudently and effectively operate and handle its business in accordance with fair financial
and business standards and customs;


 


2.1.3
Without prior written consent of Party A, it will not sell, transfer, pledge or otherwise dispose any legal or beneficial interest
of any assets, businesses or income of Party C, or permit existence of such Security Interest;


 


2.1.4
Without prior written consent by Party A, it will not incur, inherit, guarantee or allow the existence of any debt, except for
(i) any debt incurred during its ordinary course of business rather than from borrowing; and (ii) any debt which has been disclosed
to and obtained the written consent from Party A;


 


2.1.5
It will always conduct business operations in the ordinary course to maintain its asset value, and refrain from any action/omission
that may adversely affect its business operations and asset value;


 


2.1.6
Without prior written consent by Party A, it will not to enter into any material agreement other than those executed in its ordinary
course of business (for purpose of this Section 2.1.6, a material agreement means any agreement with a contract value exceeding
RMB one hundred thousand Yuan (RMB 100,000));


 


2.1.7
Without prior written consent by Party A, it will not provide any loan or guaranty to any person;


 


2.1.8
Upon Party A’s request, it will provide Party A with information regarding its operations and financial conditions;


 


2.1.9
It will buy and maintain requisite insurance policies from an insurer acceptable to Party A, the amount and type of which will
be the same with those maintained by the companies having similar operations, properties or assets in the same region;


 


2.1.10
Without prior written consent by Party A, it will not combine, merge with, acquire or make investment to any person;


 


2.1.11
It will immediately notify Party A of any actual or potential litigation, arbitration or administrative proceeding regarding its
assets, business and income;


 


2.1.12
In order to keep its ownership of the equity interest of Party C, it will execute all requisite or appropriate documents, conduct
all requisite or appropriate actions, and make all requisite or appropriate claims, or make requisite or appropriate defense against
all claims; and


 


2.1.13
Without prior written consent by Party A, it will not distribute any dividend or bonus to any of its shareholders.


 


2.2
Party B hereby covenants that:


 


2.2.1
Without prior written consent by Party A, it will not supplement, change or amend the Articles of


 


Association,
increase or decrease the registered capital, or otherwise change the registered capital structure of Party C;


 






    3


     


    

 


2.2.2
Without the prior written consent by Party A, it will not sell, transfer, pledge or otherwise dispose any legal or beneficial
interest of the equity interests of Party C held by it, or allow other security interests to be created on it, except for the
pledge set upon Party C’s equity interests held by Party B pursuant to the Equity Pledge Agreement;


 


2.2.3
It will procure that without prior written consent by Party A, no resolution be made at any meeting of Party C’s shareholders
to approve Party C to sell, transfer, pledge or otherwise dispose any legal or beneficial interest of the equity interests of
Party C held by it, or allow other security interests to be created on it, except for the pledge set upon Party C’s equity
interests held by Party B pursuant to the Equity Pledge Agreement;


 


2.2.4
It will procure that without prior written consent by Party A, no resolution be made at any meeting of Party C’s shareholders
to approve merger, consolidation, purchase or investment with or any person by Party C;


 


2.2.5
It will immediately notify Party A of any actual or potential litigation, arbitration or administrative proceeding regarding its
assets, business and income;


 


2.2.6
It will cause Party C’s shareholders’ meeting to vote for the transfer of the Purchased Equity Interest provided hereunder;


 


2.2.7
In order to keep its ownership of the equity interests of Party C, it will execute all requisite or appropriate documents, conduct
all requisite or appropriate actions, and make all requisite or appropriate claims, or make requisite or appropriate defense against
all claims;


 


2.2.8
At the request of Party A, it will appoint any person nominated by Party A to the board of Party C;


 


2.2.9
At the request of Party A at any time, it will transfer unconditionally and immediately the Purchased Equity Interest to Party
A or any Designated Person and waive the right of first refusal regarding the Purchased Equity Interest. If the equity interest
of Party C could be sold or transferred to any party other than Party A or the Designated Person, Party B may not waive its right
of first refusal without Party A’s consent;


 


2.2.10
It will strictly comply with the provisions of this Agreement and other agreements jointly or severally executed by any of the
Parties, duly perform all obligations under such agreements, and will not make any act or omission which may affect the validity
and enforceability of these agreements; and


 


2.2.11
It irrevocably undertakes to be severally and jointly liable for the obligations provided hereunder.


 


2.3
Party A hereby convenants that:


 


To
satisfy the cash flow requirements with regard to the business operations of Party C or make up Party C’s losses accured
through such operations, Party A agrees that it shall, through itself or its designated person, provide financial support to Party
C.


 






    4


     


    

 


3.
Representations and Warranties


 


Each
of Party B and Party C represents and warrants, jointly and severally, to Party A that as of the date of this Agreement:


 


3.1
It has the rights and powers to execute and deliver this Agreement and any equity interest transfer agreement (the “Transfer
Agreement”) executed for each transfer of the Purchased Equity Interest contemplated hereunder to which it is a party, and
perform its obligations under this Agreement and any Transfer Agreement. Once executed, this Agreement and the Transfer Agreement
to which it is a party will be its legal, valid and binding obligations and enforceable against it according to the terms of this
Agreement and the Transfer Agreement.


 


3.2
None of its execution, delivery and performance of this Agreement or any Transfer Agreement will:


 


(i)
breach any applicable PRC laws; (ii) conflict with its articles of association or any other organizational documents;(iii) breach
any agreement or document to which it is a party or binding upon it, or constitute breach of any such agreement or document; (iv)
breach any condition on which basis any of its permits or approvals is granted and/or will continue to be effective; or (v) cause
any of its permits or approvals to be suspended, cancelled or imposed with additional conditions.


 


3.3
Party B has good and entire ownership of and creates no security interest or encumbrance upon any of its assets.


 


3.4
Party C has no outstanding debt, except for those (i) incurred during its ordinary course of business, and (ii) disclosed to and
approved in writing by Party A.


 


3.5
Party C is in compliance with all applicable laws and regulations.


 


4.
Effectiveness and Term


 


4.1
This Agreement shall be effective as of the date of its execution.


 


4.2
The term of this Agreement is ten (10) years. This Agreement may be extended for another ten (10) years upon Party A’s written
confirmation prior to the expiration of this Agreement, and so forth thereafter.


 


4.3
During the term provided in Section 4.2, if Party A or Party C is terminated at expiration of their respective operation term
(including any extension of such term) or by any other reason, this Agreement shall be terminated upon such termination.


 


5.
Termination


 


5.1
At any time during the term of this Agreement and any extended term hereof, if Party A cannot exercise the Purchase Option pursuant
to Section 1 due to then applicable laws, Party A can, at its own discretion, unconditionally terminate this Agreement by issuing
a written notice to Party B without any liability.


 


5.2
If Party C is terminated due to bankruptcy, dissolution or being ordered to close down by the laws during the term of this Agreement
and its extension period,, the obligations of Party B hereunder shall be terminated upon the termination of Party C; notwithstanding
anything to the contrary, Party B shall immediately repay the principal and any interest accrued thereupon under accrued thereupon
under any loan agreement between the Party A and Party C.


 






    5


     


    

 


5.3
Except under circumstances indicated in Section 5.2, Party B may not unilaterally terminate this Agreement at any time during
the term and extension periods of this Agreement without Party A’s written consent.


 


6.
Taxes and Expenses


 


Each
Party shall bear any and all taxes, costs and expenses related to transfer and registration as required by the PRC laws incurred
by or imposed on such Party arising from the preparation and execution of this Agreement and the consummation of the transaction
contemplated hereunder.


 


7.
Breach of Contract


 


7.1
If either Party (“Defaulting Party”) breaches any provision of this Agreement, which causes damage to other Parties
(“Non-defaulting Party”), the Non-defaulting Party could notify the Defaulting Party in writing and request it to
rectify and correct such breach of contract; if the Defaulting Party fails to take any action satisfactory to the Non-defaulting
Party to rectify and correct such breach within fifteen (15) days upon the issuance of the written notice by the Non-defaulting
Party, the Non-defaulting Party may take the actions pursuant to this Agreement or take other remedies in accordance with the
laws.


 


7.2
The following events shall constitute a default by Party B:


 


(1)
Party B breaches any provision of this Agreement, or any representation or warranty made Party B under this Agreement is untrue
or proves inaccurate in any material aspect;


 


(2)
Party B assigns or otherwise transfers or disposes of any of its rights under this Agreement without the prior written consent
by Party A; or


 


(3)
Any breaches by Party B which renders this Agreement and the Equity Pledge Agreement unenforceable.


 


7.3
Should a breach of contract by Party B or violation by Party B of the Equity Pledge Agreement occur, Party A may request Party
B to immediately transfer all or any part of the Purchased Equity Interests to Party A or the Designated Person pursuant to this
Agreement.


 


8.
Notices


 


Notices
or other communications required to be given by any Party pursuant to this Agreement shall be made in writing and delivered personally
or sent by mail or facsimile transmission to the addresses of the other Parties set forth below or other designated addresses
notified by such other Parties to such Party from time to time. The date when the notice is deemed to be duly served shall be
determined as the follows: (a) a notice delivered personally is deemed duly served upon the delivery; (b) a notice sent by mail
is deemed duly served on the seventh (7) day after the date when the air registered mail with postage prepaid has been sent out
(as is shown on the postmark), or the fourth (4 ) day after the delivery date to the internationally recognized courier service
agency; and (c) a notice sent by facsimile transmission is deemed duly served upon the receipt time as is shown on the transmission
confirmation of relevant documents.


 






    6


     


    

 


If
to Party A: Chain Cloud Mall Network and Technology (Tianjin) Co., Ltd.


 


Address:
A-19 Zhongguancun Kexin Industrial Park, Shuangjie Town, Beichen District, Tianjin


 


Phone:
86-


 


Attention:
Yongning Jia


 


If
to Party B: 


 


乙方:


 


Zeyao
Xue


 


Address:
23F, China Development Bank Tower, No. 2 Gaoxin 1st Road, Xi'an, Shaanxi


 


Phone:
86-29-


 


Kai
Xu


 


Address:
A-19 Zhongguancun Kexin Industrial Park, Shuangjie Town, Beichen District, Tianjin


 


Phone:
86-


 


If
to Party C: Chain Cloud Mall E-commerce (Tianjin) Co., Ltd


 


Address:
A-19 Zhongguancun Kexin Industrial Park, Shuangjie Town, Beichen District, Tianjin


 


Phone:
86-


 


Attention:
Kai Xu


 


9.
Applicable Law and Dispute Resolution


 


9.1
The formation, validity, performance and interpretation of this Agreement and the disputes resolution under this Agreement shall
be governed by the PRC laws.


 


9.2
The Parties shall strive to settle any dispute arising from or in connection with this Agreement through friendly consultation.
In case no settlement can be reached through consultation within thirty (30) days after the request for consultation is made by
any Party, any Party can submit such matter to China International Economic and Trade Arbitration Commission for arbitration in
accordance with its then effective rules. The arbitration shall take place in Beijing. The arbitration award shall be final and
binding upon all the Parties.


 






    7


     


    

 


10.
Confidentiality


 


All
Parties acknowledge and confirm that any oral or written materials exchanged by and between the Parties in connection with this
Agreement are confidential. All Parties shall keep in confidence all such information and not disclose it to any third party without
prior written consent from other Parties unless: (a) such information is known or will be known by the public(except by disclosure
of the receiving party without authorization); (b) such information is required to be disclosed in accordance with applicable
laws or rules or regulations; or (c) if any information is required to be disclosed by any party to its legal or financial advisor
for the purpose of the transaction of this Agreement, such legal or financial advisor shall also comply with the confidentiality
obligation similar to that stated hereof. Any disclosure by any employee or agency engaged by any Party shall be deemed the disclosure
of such Party and such Party shall assume the liabilities for its breach of contract pursuant to this Agreement. This Article
shall survive expiration or termination of this Agreement.


 


11.
Miscellaneous


 


11.1
The headings contained in this Agreement are for the convenience of reference only and shall not be used to interpret, explain
or otherwise affect the meaning of the provisions of this Agreement.


 


11.2
The Parties agree to promptly execute any document and take any other action reasonably necessary or advisable to perform provisions
and purpose of this Agreement.


 


11.3
The Parties confirm that this Agreement shall, upon its effectiveness, constitute the entire agreement and common understanding
of the Parties with respect to the subject matters herein and fully supersede all prior verbal and/or written agreements and understandings
with respect to the subject matters herein.


 


11.4
The Parties may amend and supplement this Agreement in writing. Any amendment and/or supplement to this Agreement by the Parties
is an integral part of and has the same effect with this Agreement.


 


11.5
This Agreement shall be binding upon and for the benefit of all the Parties hereto and their respective inheritors, successors
and the permitted assigns.


 


11.6
Any Party’s failure to exercise the rights under this Agreement in time shall not be deemed as its waiver of such rights
and would not affect its future exercise of such rights.


 


11.7
If any provision of this Agreement is held void, invalid or unenforceable by a court of competent jurisdiction, governmental agency
or arbitration authority, the validity, legality and enforceability of the other provisions hereof shall not be affected or impaired
in any way. The Parties shall cease performing such void, invalid or unenforceable provisions and revise such void, invalid or
unenforceable provisions only to the extent closest to the original intention thereof to recover its validity or enforceability
for such specific facts and circumstances.


 


11.8
Unless with prior written consent from Party A, none of Party B or Party C may assign any of its rights and obligations under
this Agreement to any third party.


 


11.9
This Agreement is made in four (4) originals with each Party holding one (1) original. Each original has the same effect.


 


(No
text below)


 






    8


     


    

 


(Signature
Page)


 


IN
WITNESS THEREOF, each Party has signed or caused its authorized representative to sign this Agreement as of the date first written
above.


 


Party
A: Chain Cloud Mall Network and Technology (Tianjin) Co., Ltd.


 


(Seal
of Chain Cloud Mall Network and Technology (Tianjin) Co., Ltd.)


 


	By:	/s/
    Yongning Jia	 
	 	 	 
	Party B:	 
	 	 	 
	Zeyao Xue	 
	 	 	 
	By:	/s/
    Zeyao Xue	 
	 	 	 
	Kai Xu	 
	 	 	 
	By:	/s/
    Kai Xu	 
	 	 	 
	Party C: Chain Cloud Mall E-commerce
    (Tianjin) Co., Ltd.	 
	 	 	 
	/s/ Chain Cloud Mall E-commerce
    (Tianjin) Co., Ltd.	 
	 	 	 
	By:	(Seal
    of Chain Cloud Mall E-commerce (Tianjin) Co., Ltd.)	 




 


 


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