Document:

Exhibit 10.45

 

UXIN LIMITED

 

UCAREASE HOLDING LIMITED

 

UXIN USED CAR LIMITED

 

PERFECT HARMONY GROUP LIMITED

 

UXIN HONG KONG LIMITED

 

(優信互聯香港有限公司)

 

GLORYFIN INTERNATIONAL GROUP HOLDING COMPANY LIMITED

 

(锦融国际控股集团有限公司)

 

UCARSHOW HK LIMITED

 

(優車秀香港有限公司)

 

FAIRLUBO AUCTION COMPANY LIMITED

 

FAIRLUBO AUCTION HK COMPANY LIMITED

 

UCARBUY HOLDING LIMITED

 

UCARBUY HK LIMITED

 

XIN LIMITED

 

XIN HK LIMITED

 

BEIJING YOUXIN FENGSHUN LUBAO VEHICLE AUCTION CO., LTD.

 

(北京优信丰顺路宝机动车拍卖有限公司)

 

BEIJING FENGSHUN LUBAO VEHICLE AUCTION CO., LTD.

 

(北京丰顺路宝机动车拍卖有限公司)

 

SHANGHAI FENGSHUN LUBAO VEHICLE AUCTION CO., LTD.

 

(上海丰顺路宝机动车拍卖有限公司)

 

TIANJIN FENGSHUN LUBAO VEHICLE CONSULTING CO., LTD.

 

(天津丰顺路宝机动车信息咨询服务有限公司)

 

KAIFENG FINANCING LEASE (HANGZHOU) CO., LTD.

 

(凯枫融资租赁(杭州)有限公司)

 

BOYU FINANCING LEASE (TIANJIN) CO., LTD.

 

(博裕融资租赁(天津)有限公司)

 

YOUXINPAI (BEIJING) INFORMATION TECHNOLOGY CO., LTD.

 

(优信拍(北京)信息科技有限公司)

 

YOUXIN INTERNET (BEIJING) INFORMATION TECHNOLOGY CO., LTD.

 

 

(优信互联(北京)信息技术有限公司)

 

YOUTU (BEIJING) TRANSPORTATION AGENT CO., LTD.

 

(优途(北京)运输代理有限公司)

 

YOUXINPAI (BEIJING) AUCTION CO., LTD.

 

(优信拍(北京)拍卖有限公司)

 

SICHUAN YOUXINPAI AUCTION CO., LTD.

 

(四川优信拍拍卖有限公司)

 

YOUXINPAI (BEIJING) SECOND HAND CAR APPRAISAL AND EVALUATION CO., LTD.

 

(优信拍(北京)二手车鉴定评估有限公司)

 

YOUXINHULIAN (BEIJING) BUSINESS AND TRADE CO., LTD.

 

(优信互联(北京)商贸有限公司)

 

BEIJING YOUXIN RUIDA ASSETS MANAGEMENT CO., LTD.

 

(北京优信睿达资产管理有限公司)

 

BEIJING YOUXIN YILIAN INVESTMENT CO., LTD.

 

(北京优信易联投资有限公司)

 

CHENGDU YOUXIN JINCHENG SECOND HAND CAR MARKET CO., LTD.

 

(成都优信锦城二手车市场有限公司)

 

SHENZHEN YOUXIN PENGCHENG SECOND HAND CAR TRADE MARKET CO., LTD.

 

(深圳市优信鹏城二手车交易市场有限公司)

 

SHENZHEN YOUXIN PENGDA SECOND HAND CAR BROKERAGE CO., LTD.

 

(深圳市优信鹏达二手车经纪有限公司)

 

YOUHAN (SHANGHAI) INFORMATION TECHNOLOGY CO., LTD.

 

(上海优晗信息科技有限公司)

 

YOUXIN (SHANGHAI) AUCTION CO., LTD.

 

(优信(上海)拍卖有限公司)

 

YOUXIN AUTOMOBILE ONLINE TRADE MARKET SERVICE CO., LTD.

 

(优新机动车网上交易市场服务有限公司)

 

GUANGZHOU YOUXIN YUECHENG SECOND HAND CAR SEREVICES CO., LTD.

 

(广州市优信粤诚二手车服务有限公司)

 

 

YOUGU (SHANGHAI) INFORMATION TECHNOLOGY CO., LTD.

 

(优估(上海)信息科技有限公司)

 

YOUXUAN (BEIJING) INFORMATION TECHNOLOGY CO., LTD.

 

(优轩(北京)信息科技有限公司)

 

YOUZHEN (BEIJING) BUSINESS CONSULTING CO., LTD.

 

(优臻(北京)商务咨询有限公司)

 

YOUFANG (BEIJING) INFORMATION TECHNOLOGY CO., LTD.

 

(优舫(北京)信息科技有限公司)

 

YOUXIN SHUXIANG (BEIJING) INFORMATION TECHNOLOGY CO., LTD.

 

(优信数享(北京)信息技术有限公司)

 

YOUXIN (SHANGHAI) SECOND HAND CAR BUSINESS CO., LTD.

 

(优歆(上海)二手车经营有限公司)

 

YOUYUAN (BEIJING) INFORMATION TECHNOLOGY CO., LTD.

 

(优辕(北京)信息科技有限公司)

 

XINHONG (SHANGHAI) INFORMATION TECHNOLOGY CO., LTD.

 

(新宏(上海)信息科技有限公司)

 

YOUXIN YISHOUCHE (BEIJING) INFORMATION TECHNOLOGY CO., LTD.

 

(优信易手车(北京)信息技术有限公司)

 

CHEBOLE (BEIJING) INFORMATION TECHNOLOGY CO., LTD.

 

(车伯乐(北京)信息科技有限公司)

 

FOUNDER

 

FOUNDER HOLDING COMPANY

 

AND

 

INVESTOR

 

 

SERIES G+ SHARE SUBSCRIPTION 
 AGREEMENT

 

 

Dated December 6, 2017

 

 

SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

This SERIES G+ SHARE SUBSCRIPTION AGREEMENT (this “Agreement”) is made on December 6, 2017 by and among:

 

(1)                                 Uxin Limited, an exempted company duly incorporated and validly existing under the laws of the Cayman Islands with its registered address at the offices of Offshore Incorporations (Cayman) Limited, Grand Pavilion, Hibiscus Way, 802 West Bay Road, P.O. Box 31119, KY1-1205, Cayman Islands (the “Company”);

 

(2)                                 UcarEase Holding Limited, a BVI business company duly incorporated and validly existing under the laws of British Virgin Islands with its registered address at the offices of OMC Chambers, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands (“UcarEase BVI”);

 

(3)                                 Uxin Used Car Limited, an exempted company duly incorporated and validly existing under the laws of Cayman Islands with its registered address at Sertus Chambers, P.O. Box 2547, Cassia Court, Camana Bay, Grand Cayman, Cayman Islands (“Uxin Used Car Cayman”);

 

(4)                                 Perfect Harmony Group Limited, a BVI business company duly incorporated and validly existing under the laws of British Virgin Islands with its registered address at P.O. Box 905, Quastisky Building, Road Town, Tortola, British Virgin Islands (“Perfect Harmony”);

 

(5)                                 Uxin Hong Kong Limited (優信互聯香港有限公司), a company duly incorporated and validly existing under the laws of Hong Kong with its registered address at Room 502, Bank of America Tower, 12 Harcourt Road, Central, Hong Kong (“Uxin HK”);

 

(6)                                 GloryFin International Group Holding Company Limited (錦融國際控股集團有限公司), a company duly incorporated and validly existing under the laws of Hong Kong with its registered address at Room 19C, Lockhart Centre, 301-307 Lockhart Rd., Wan Chai, Hong Kong (“GloryFin HK”);

 

(7)                                 UcarShow HK Limited (優車秀香港有限公司), a company duly incorporated and validly existing under the laws of Hong Kong with its registered address at Room 1907, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong (“UcarShow HK”);

 

(8)                                 Fairlubo Auction Company Limited, a limited liability company duly incorporated and validly existing under the laws of Cayman Islands with its registered address at the offices of Offshore Incorporations (Cayman) Limited, Floor 4, Willow House, Cricket Square, P O Box 2804, Grand Cayman KY1-1112, Cayman Islands (“Fairlubo”);

 

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(9)                                 Fairlubo Auction HK Company Limited, a company duly incorporated and validly existing under the laws of Hong Kong with its registered address at Room 1907, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong (“Fairlubo HK”);

 

(10)                          UcarBuy Holding Limited, a BVI business company duly incorporated and validly existing under the laws of British Virgin Islands with its registered address at the offices of OMC Chambers, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands (“UcarBuy BVI”);

 

(11)                          UcarBuy HK Limited, a company duly incorporated and validly existing under the laws of Hong Kong with its registered address at Room 1907, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong (“UcarBuy HK”);

 

(12)                          Xin Limited, a limited liability company duly incorporated and validly existing under the laws of Cayman Islands with its registered address at the offices of Sertus Chambers, P.O. Box 2547, Cassia Court, Camana Bay, Grand Cayman, Cayman Islands;

 

(13)                          Xin HK Limited, a limited liability company duly incorporated and validly existing under the laws of Hong Kong with its registered address at Room 1907, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong (“Xin HK”);

 

(14)                          Beijing Youxin Fengshun Lubao Vehicle Auction Co., Ltd. (北京优信丰顺路宝机动车拍卖有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 1632 of 1-16, Building A, Floor 16, Building No. 1, No. Jia 6, Jianguomen Outer Avenue, Chaoyang District, Beijing, China (北京市朝阳区建国门外大街甲6号1幢16层A座1-16内1632) (“Lubao WFOE”);

 

(15)                          Beijing Fengshun Lubao Vehicle Auction Co., Ltd. (北京丰顺路宝机动车拍卖有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room1416, Floor 14, Fengkai Wangyuan Technology Incubator Center (Wangyuan Building), No. 56, South Road of 4th West Ring, Fengtai District, Beijing, China (北京市丰台区西四环南路56号丰开望园科技孵化中心(望园大厦)14层1416房间) (“Fengshun Lubao”);

 

(16)                          Shanghai Fengshun Lubao Vehicle Auction Co., Ltd.(上海丰顺路宝机动车拍卖有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 312, No. 579, An Chi Road, Anting, Diading District, Shanghai, China (上海市嘉定区安亭镇安驰路569号312室) (“Shanghai Lubao”);

 

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(17)                          Tianjin Fengshun Lubao Vehicle consulting Co., Ltd. (天津丰顺路宝机动车信息咨询服务有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 1-208, No. 146, Wei Guo Avenue, Hedong District, Tianjin, China (天津市河东区卫国道136号1-208) (“Tianjin Lubao”);

 

(18)                          Kaifeng Financing Lease (Hangzhou) Co., Ltd. (凯枫融资租赁(杭州)有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 1501-11, North Building No. 1, Yang Guang Hua Cheng Chuang Fu Center, No. 386, Xue Zheng Street, Hangzhou Economic and Technological Development Zone, Hangzhou, Zhejiang Province, China (杭州经济技术开发区学正街386号阳光华城创富中心北1幢1501-11室) (“Kaifeng Financing Lease”);

 

(19)                          Boyu Financing Lease (Tianjin) Co., Ltd. (博裕融资租赁(天津)有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at No. 565, Lanzhou Avenue, Dongjiang Bonded Port Area, Tianjin, China (Haize Logistics Park 6-4-47) (天津东疆保税港区兰州道565号(海泽物流园6-4-47)) (“Boyu Financing Lease”);

 

(20)                          Youxinpai (Beijing) Information Technology Co., Ltd. (优信拍(北京)信息科技有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323701, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China  (北京市朝阳区阜通东大街1号院5号楼323701室) (the “WFOE”);

 

(21)                          Youxin Internet (Beijing) Information Technology Co., Ltd. (优信互联(北京)信息技术有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 2106-A030, No. 9, North 4th Ring West Road, Haidian District, Beijing, China (北京市海淀区北四环西路9号2106-A030) (the “PRC Domestic Company”);

 

(22)                          Youtu (Beijing) Transportation Agent Co., Ltd. (优途(北京)运输代理有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323702, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323702室) (“Youtu Beijing”);

 

(23)                          Youxinpai (Beijing) Auction Co., Ltd. (优信拍(北京)拍卖有限公司), a limited liability company duly incorporated and validly existing under the laws of the 

 

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People’s Republic of China with its registered address at Room 323705, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323705室) (“Youxinpai Auction”);

 

(24)                          Sichuan Youxinpai Auction Co., Ltd. (四川优信拍拍卖有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at 1/F, Building No. 7, No. 2 Huan San Xiang, Xiao Jia He, High and New Technology Development Zone, Chengdu, Sichuan Province, China (成都高新区肖家河环三巷2号7幢1层) (“Youxinpai Sichuan Auction”);

 

(25)                          Youxinpai (Beijing) Second Hand Car Appraisal and Evaluation Co., Ltd. (优信拍(北京)二手车鉴定评估有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323706, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323706室) (“Youxinpai Second Hand Car”);

 

(26)                          Youxinhulian (Beijing) Business and Trade Co., Ltd. (优信互联(北京)商贸有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323703, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323703室) (“Youxin Business”);

 

(27)                          Beijing Youxin Ruida Assets Management Co., Ltd. (北京优信睿达资产管理有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323603, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323603室) (“Youxin Ruida Assets”);

 

(28)                          Beijing Youxin Yilian Investment Co., Ltd. (北京优信易联投资有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323601, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323601室) (“Youxin Yilian”);

 

(29)                          Chengdu Youxin Jincheng Second Hand Car Market Co., Ltd. (成都优信锦城二手车市场有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at No. 846, South Section, Tianfu Avenue, Huayang Street, Tianfu New District, Chengdu, Sichuan Province, China (四川省成都市天府新区华阳街道天府大道南段846号) (“ Youxin Chengdu”);

 

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(30)                          Shenzhen Youxin Pengcheng Second Hand Car Trade Market Co., Ltd. (深圳市优信鹏城二手车交易市场有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 218, Building Yiben, No. 1063, Chaguang Road, Nanshan District,  Shenzhen, China (深圳市南山区茶光路1063号一本大楼218) (“Youxin Pengcheng”, together with Youtu Beijing, Youxinpai Auction, Youxinpai Sichuan Auction, Youxinpai Second Hand Car, Youxin Business, Youxin Yilian, and Youxin Chengdu ,the “PRC Subsidiaries”, and each a “PRC Subsidiary”);

 

(31)                          Shenzhen Youxin Pengda Second Hand Car Brokerage Co., Ltd. (深圳市优信鹏达二手车经纪有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 203, Building Yiben, No. 1063, Chaguang Road, Nanshan District, Shenzhen, China (深圳市南山区茶光路1063号一本大楼203) (“Youxin Pengda”);

 

(32)                          Youhan (Shanghai) Information Technology Co., Ltd. (上海优晗信息科技有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 1118, No. 106, Xinling Road, Free Trade Zone, Shanghai, China (中国(上海)自由贸易试验区新灵路106号1118室) (“Youhan Shanghai”);

 

(33)                          Youxin (Shanghai) Auction Co., Ltd. (优信(上海)拍卖有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at No. 4616, Caoan Road, Anting Town, Jiading District, Shanghai, China (上海市嘉定区安亭镇曹安路4616号) (“Youxin Auction”);

 

(34)                          Youxin Automobile Online Trade Market Service Co., Ltd. (优新机动车网上交易市场服务有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 109, Building No. 2, No. 4616, Caoan Road, Anting Town, Jiading District, Shanghai, China (上海市嘉定区安亭镇曹安路4616号2幢109室) (“Youxin Automobile”);

 

(35)                          Guangzhou Youxin Yuecheng Second Hand Car Services Co., Ltd. (广州市优信粤诚二手车服务有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 301, No. 402, Longxi Avenue, Liwan District, Guangzhou, China (广州市荔湾区龙溪大道402号301房) (“Youxin Yuecheng”);

 

(36)                          Yougu (Shanghai) Information Technology Co., Ltd. (优估(上海)信息科技有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 368, Area 

 

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302, No. 211, North Fute Road, Free Trade Zone, Shanghai, China (中国(上海)自由贸易试验区富特北路211号302部位368室) (“Yougu Shanghai”);

 

(37)                          Youxuan (Beijing) Information Technology Co., Ltd. (优轩(北京)信息科技有限公司), a limited liability company duly incorporated and validly existing under the  laws of the People’s Republic of China with its registered address at Room 323605, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323605室) (“Youxuan Beijing”);

 

(38)                          Youzhen (Beijing) Business Consulting Co., Ltd. (优臻(北京)商务咨询有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323608, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323608室) (“Youzhen Beijing”);

 

(39)                          Youfang (Beijing) Information Technology Co., Ltd. (优舫(北京)信息科技有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323607, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323607室) (“Youfang Beijing”);

 

(40)                          Youxin Shuxiang (Beijing) Information Technology Co., Ltd. (优信数享(北京)信息技术有限公司) , a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323610, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323610室) (“Youxin Shuxiang”);

 

(41)                          Youxin (Shanghai) Second Hand Car Business Co., Ltd. (优歆(上海)二手车经营有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room D-09, Floor 2, Building No. 1, No. 198, Huashen Road, Free Trade Zone, Shanghai, China (中国(上海)自由贸易试验区华申路198号1幢楼二层D-09室) (“Youxin Shanghai”);

 

(42)                          Youyuan (Beijing) Information Technology Co., Ltd. (优辕(北京)信息科技有限公司), a limited liability company duly incorporated and validly existing under 

 

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the laws of the People’s Republic of China with its registered address at Room 323606, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323606室) (“Youyuan Beijing”);

 

(43)                          Xinhong (Shanghai) Information Technology Co., Ltd. (新宏(上海)信息科技有限公司), a limited liability company duly incorporated and validly existing under

 

the laws of the People’s Republic of China with its registered address at No. 105-35, Floor 1, Building 2, No. 38, Debao Road, Free Trade Zone, Shanghai, China (中国(上海)自由贸易试验区德堡路38号2幢1层105-35室) (“Xinhong Shanghai”);

 

(44)                          Youxin Yishouche (Beijing) Information Technology Co., Ltd. (优信易手车(北京)信息技术有限公司), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323602, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323602室) (“Youxin Yishouche”);

 

(45)                          Chebole (Beijing) Information Technology Co., Ltd. (车伯乐(北京)信息科技有限公司) (was previously named as Banmaxiu (Beijing) Information Technology Co., Ltd. (斑马秀(北京)信息科技有限公司)), a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China with its registered address at Room 323609, Building No. 5, Compound No.1, Futong East Avenue, Chaoyang District, Beijing, China (北京市朝阳区阜通东大街1号院5号楼323609室) (“Chebole Beijing”);

 

(46)                          the individual listed in Part I(a) of EXHIBIT A (the “Founder”);

 

(47)                          the company listed in Part I(b) of EXHIBIT A (the “Founder Holding Company”); and

 

(48)                          Huangpu Investment Holding Limited, a company duly incorporated and validly existing under the laws of British Virgin Islands (The “Investor”).

 

The Company, UcarEase BVI, Uxin Used Car Cayman, Perfect Harmony, Uxin HK, GloryFin HK, UcarShow HK, Fairlubo, Fairlubo HK, UcarBuy BVI, UcarBuy HK, Xin Limited, Xin HK, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, the WFOE, the PRC Domestic Company, the PRC Subsidiaries, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing, Youxin Ruida Assets, the Founder, the Founder Holding Company and the Investor are hereinafter collectively referred to as the “Parties” and individually as a “Party”.

 

RECITALS

 

A.                                    The Company desires to issue and allot a number of Series G+ redeemable convertible preferred shares, par value US$0.001 per share, of the Company (the “Series G+ Preferred Shares” to the Investor. The holders of any Series G+ Preferred Shares are hereinafter collectively referred to as the “Series G+ Preferred Shareholders” and each a “Series G+ Preferred Shareholder”) (the “Series G+ Financing”).

 

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B.                                    The Company desires to issue and allot to the Investor and the Investor desires to subscribe for that number of Series G+ Preferred Shares as set forth opposite the Investor’s name in Part III of EXHIBIT A, on the terms and conditions set forth in this Agreement.

 

C.                                    As of the date hereof, the Founder Holding Company owns 4,931,886 ordinary shares, par value US$0.001 per share, of the Company (the “Ordinary Shares”); certain other Persons (as defined below) whose names are listed in Part I of EXHIBIT B collectively own 5,000,000 Series A redeemable convertible preferred shares, par value US$0.001 per share, of the Company (the “Series A Shares”); certain other Persons  whose names are listed in Part I of EXHIBIT B collectively own 491,089 Series A-1 redeemable convertible preferred shares, par value US$0.001 per share, of the Company (the “Series A-1 Shares”, together with the Series A Shares, the “Series A Preferred Shares”, and the holders of any Series A Preferred Shares are hereinafter collectively referred to as the “Series A Preferred Shareholders” and each a “Series A Preferred Shareholder”); certain other Persons whose names are listed in Part I of EXHIBIT B collectively own 7,060,263 Series B redeemable convertible preferred shares, par value US$0.001 per share, of the Company (the “Series B Preferred Shares”, and the holders of any Series B Preferred Shares are hereinafter collectively referred to as the “Series B Preferred Shareholders” and each a “Series B Preferred Shareholder”); certain other Persons whose names are listed in Part I of EXHIBIT B collectively own 8,670,877 Series C-1 redeemable convertible preferred shares, par value US$0.001 per share, of the Company (the “Series C-1 Preferred Shares”); certain other Persons whose names are listed in Part I of EXHIBIT B collectively own 1,055,891 Series C-2 redeemable convertible preferred shares, par value US$0.001 per share, of the Company (the “Series C-2 Preferred Shares”, together with the Series C-1 Preferred Shares, the “Series C Preferred Shares”, and each a “Series C Preferred Share”; and the holders of any Series C Preferred Share are hereinafter collectively referred to as the “Series C Preferred Shareholders” and each a “Series C Preferred Shareholder”); certain other Persons whose names are listed in Part I of EXHIBIT B collectively own 15,935,515 Series D redeemable convertible preferred shares, par value US$0.001 per share, of the Company (the “Series D Preferred Shares” and the holders of any Series D Preferred Shares are hereinafter collectively referred to as the “Series D Preferred Shareholders” and each a “Series D Preferred Shareholder”); and certain other Persons whose names are listed in Part I of EXHIBIT B collectively own 8,947,749 Series E redeemable convertible preferred shares, par value US$0.001 per share, of the Company (the “Series E Preferred Shares” and the holders of any Series E Preferred Shares are hereinafter collectively referred to as the “Series E Preferred Shareholders” and each a “Series E Preferred Shareholder”); and certain other Persons whose names are listed in Part I of EXHIBIT B collectively own 8,516,220 Series F redeemable convertible preferred shares, par value US$0.001 per share, of the Company (the “Series F Preferred Shares”, and the holders of any Series F Preferred Shares are hereinafter collectively referred to as the “Series F Preferred Shareholders” and each a “Series F Preferred Shareholder”); and certain other Persons whose names are listed in Part I of EXHIBIT B collectively own 13,038,473 Series G redeemable convertible preferred shares, par value US$0.001 per share, of the Company (the “Series G Preferred Shares”, and the holders of any Series G Preferred Shares are hereinafter collectively referred to as the “Series G Preferred Shareholders” and each a “Series G Preferred Shareholder”, the Series G+ Preferred Shares together with the Series A Preferred Shares, the Series B Preferred Shares, the Series C Preferred Shares, the Series D Preferred Shares, the Series E Preferred Shares, the Series F Preferred Shares and the Series G Preferred Shares, the “Preferred Shares”).  The number of the Series A Preferred Shares, the Series B Preferred Shares, the Series C Preferred Shares, the Series D Preferred Shares, the Series E 

 

8

 

Preferred Shares, the Series F Preferred Shares, the Series G Preferred Shares and the Ordinary Shares as shown in Part I of EXHIBIT B represents 100% of the issued and outstanding share capital of the Company as of the date hereof.

 

D.                                    The Company owns one hundred percent (100%) equity interest in Uxin HK (on a fully diluted basis), Uxin HK in turn owns one hundred percent (100%) equity interest in the WFOE, free and clear of any Encumbrance (as defined below) and the WFOE in turn owns one hundred percent (100%) equity interest in Youxin Pengda (on a fully diluted basis), Youhan Shanghai (on a fully diluted basis), Youxin Auction (on a fully diluted basis), Youxin Automobile (on a fully diluted basis), and Youxin Yuecheng  (on a fully diluted basis), in each case free and clear of any Encumbrance (as defined below).

 

E.                                     The Company owns one hundred percent (100%) equity interest in UcarEase BVI (on a fully diluted basis), UcarEase BVI in turn owns one hundred percent (100%) equity interest in GloryFin HK (on a fully diluted basis) and GloryFin HK in turn owns hundred percent (100%) equity interest in Kaifeng Financing Lease and Boyu Financing Lease (on a fully diluted basis), in each case free and clear of any Encumbrance.

 

F.                                      The Company owns one hundred percent (100%) equity interest in Uxin Used Car Cayman(on a fully diluted basis), Uxin Used Car Cayman in turn owns one hundred percent (100%) equity interest in UcarShow HK (on a fully diluted basis) and UcarShow HK in turn owns one hundred percent (100%) equity interest in Yougu Shanghai (on a fully diluted basis), in each case free and clear of any Encumbrance.

 

G.                                    The Company owns one hundred percent (100%) equity interest in Perfect Harmony (on a fully diluted basis), Perfect Harmony in turns owns fifty two point six one five four percent (52.6154%) equity interest in Fairlubo (on a fully diluted basis), Fairlubo in turn owns one hundred percent (100%) equity interest in Fairlubo HK, and Fairlubo HK in turn owns one hundred percent (100%) equity interest in Lubao WFOE.

 

H.                                   The Company owns one hundred percent (100%) equity interest in UcarBuy Holding (on a fully diluted basis), UcarBuy Holding in turn owns one hundred percent (100%) equity interest in UcarBuy HK (on a fully diluted basis), UcarBuy HK in turn owns one hundred percent (100%) equity interest in Youxin Shanghai (on a fully diluted basis) and Youxin Shanghai in turn owns one hundred percent (100%) equity interest in Youyuan Beijing (on a fully diluted basis), in each case free and clear of any Encumbrance.

 

I.                                        The Company owns one hundred percent (100%) equity interest in Xin Limited (on a fully diluted basis), Xin Limited in turn owns one hundred percent (100%) equity interest in Xin HK (on a fully diluted basis) and Xin HK in turn owns hundred percent (100%) equity interest in Xinhong Shanghai (on a fully diluted basis), in each case free and clear of any Encumbrance.

 

J.                                        As of the date of this Agreement, Dai Kun (戴琨) and Min Si Lian Hua (as defined below) hold 99.9923% and 0.0077% respectively of equity interest in the PRC Domestic Company (on a fully diluted basis).

 

K.                                    The PRC Domestic Company owns one hundred percent (100%) equity interest in each of the PRC Subsidiaries other than Youxinpai Sichuan Auction and Youxin Yilian (on a fully diluted basis). Youxinpai Auction owns one hundred percent (100%) equity interest in Youxinpai Sichuan Auction, free and clear of any Encumbrance. The PRC 

 

9

 

Domestic Company owns seventy-three percent (73%) equity interest in Youxin Yilian, Youxin Yilian in turns owns one hundred percent (100%) equity interest in Youxin Chengdu, free and clear of any Encumbrance.

 

L.                                     As of the date of this Agreement, each of the WFOE, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, PRC Domestic Company and the PRC Subsidiaries shall be engaged in the business of Business-to-Business (“B2B”) second-hand car trading and related services and such other business activities as set out in their respective business licenses in the PRC (“WFOE Principal Business”), PRC Domestic Company and the PRC Subsidiaries shall be exclusively engaging the WFOE and the other Group Companies (as defined below) to provide technical support and advisory services as contemplated under the Restructuring Documents (as defined below) for its business, Kaifeng Financing Lease and Boyu Financing Lease shall be engaged in the business of providing financing lease and financial information services and such other business activities as set out in its business license in the PRC (the “Kaifeng Principal Business”), each of Yougu Shanghai, Youfang Beijing, Youxin Shuxiang, Youxuan Beijing and Youzhen Beijing shall be engaged in the business of Business-to-Customer (“B2C”) second-hand car trading and such other business activities as set out in its business license in the PRC (the “Yougu/Youfang Principal Business”), Youxin Shanghai and Xinhong Shanghai shall be engaged in the business of Customer-to-Business (“C2B”) second hand-car trading and such other business activities as set out in its business license in the PRC (the “Youxin Principal Business”) and each of Lubao WFOE, Fengshun Lubao, Shanghai Lubao and Tianjin Lubao shall be engaged in the business relating to the auctioning of residual second-hand vehicles and other second-hand vehicles (the “Fengshun Lubao Principal Business”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1.                                      DEFINITIONS

 

1.1                               Definitions.  Unless otherwise defined in this Agreement, capitalized terms used in this Agreement shall have the following meanings:

 

	
“Action”
    	
 
    	
has the meaning set out   in Section 10 of Part I of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Affiliate”
    	
 
    	
with respect to a   specified Person means (a) in the case of an individual, such Person’s   spouse and lineal descendants (whether natural or adopted), brother, sister,   parent, or any trust formed and maintained solely for the benefit of such   Person or such Person’s spouse, lineal descendants, brother, sister and/or   parent, or trustee of any such trust, or any entity or company Controlled by   any of the aforesaid Persons, (b) in the case of any Person other than   an individual, any other Person that directly, or indirectly through one or   more intermediaries, Controls or is Controlled by, or is under common Control   with, the Person specified, and (c) in the case of the Investor being an   investment fund (or a Subsidiary of an investment fund), the term “Affiliate” shall also include any other investment fund   (or a
    

 

10

 

	
 
    	
 
    	
Subsidiary of any such investment fund) managed by   the same manager of the Investor (or, if the Investor is a Subsidiary of an   investment fund, the same manager of the investment fund of which the   Investor is a Subsidiary) and any other limited partners, general partners,   shareholders and fund managers of the Investor or of such investment fund or   of such Subsidiary, in addition to the Persons specified in item   (b) above.
    
	
 
    	
 
    	
 
    
	
“Agreement”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“AIC”
    	
 
    	
means the State Administration for Industry and   Commerce or its local counterparts.
    
	
 
    	
 
    	
 
    
	
“Applicable Laws”   or “Applicable Law”
    	
 
    	
means, with respect to any Person, relevant   provisions of any constitution, treaty, statute, law, regulation, ordinance,   code, rule, judgment, rule of common law, order, decree, award,   injunction, government approval, concession, grant, franchise, license,   agreement, directive, requirement, or other governmental restriction or any   similar form of decision of, or determination by, or interpretation and   administration of any of the foregoing by, any Governmental Authority,   whether in effect as at the date hereof or thereafter and in each case as   amended or re-enacted, applicable to such Person or any of its assets or   undertakings.
    
	
 
    	
 
    	
 
    
	
“Arbitration Notice”
    	
 
    	
has the meaning set out in Section 10.4(a).
    
	
 
    	
 
    	
 
    
	
“Associate”
    	
 
    	
means with respect to any Person, (a) a   corporation or organization (other than the Group Companies) of which such   Person is an officer or partner or is, directly or indirectly, the beneficial   owner of ten percent (10%) or more of any class of equity securities,   (b) any trust or other estate in which such Person has a substantial   beneficial interest or as to which such Person serves as trustee or in a   similar capacity, and (c) any relative or spouse of such Person, or any   relative of such spouse who has the same home as such Person.
    
	
 
    	
 
    	
 
    
	
“B2B”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“B2C”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Board”
    	
 
    	
means the board of directors of the Company.
    
	
 
    	
 
    	
 
    
	
“Boyu Financing Lease”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Business Day”
    	
 
    	
any day (excluding Saturdays, Sundays and public   holidays in Hong Kong, New York or the PRC) on which banks generally are open   for business in Hong Kong, New York and the PRC.
    
	
 
    	
 
    	
 
    
	
“C2B”
    	
 
    	
has the meaning set out in the Recitals.
    

 

11

 

	
“Chebole Beijing”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Circular No. 37”
    	
 
    	
has the meaning set out in   Section 21(d) of Part I of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Circular No. 75”
    	
 
    	
has the meaning set out in   Section 21(d) of Part I of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Closing”
    	
 
    	
has the meaning set out in Section 3.1.
    
	
 
    	
 
    	
 
    
	
“Company”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Confidentiality   Agreement”
    	
 
    	
has the meaning set out in Section 18 of Part I   of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Constitutional Documents”
    	
 
    	
means, with respect to any Person, the certificate   of incorporation, memorandum of association, articles of association, joint   venture agreement, shareholders agreement or security holders agreement,   business license or similar constitutive documents for such Person.
    
	
 
    	
 
    	
 
    
	
“Contract”
    	
 
    	
means any agreement, arrangement, bond, commitment,   franchise, indemnity, indenture, instrument, lease, license, permit, or   binding understanding, whether or not in writing.
    
	
 
    	
 
    	
 
    
	
“Control”
    	
 
    	
(including the correlative meanings of the terms “Controlling,” “Controlled by”   and “under common Control with”) means,   with respect to any Person, direct or indirect possession of the power to   direct or cause the direction of the management or policies (with respect to   operational or financial control or otherwise) of such Person, whether   through the ownership of securities, by contract or otherwise.
    
	
 
    	
 
    	
 
    
	
“Conversion Shares”
    	
 
    	
has the meaning set out in Section 2.3.
    
	
 
    	
 
    	
 
    
	
“Covenantor Contracts”
    	
 
    	
has the meaning set out in Section 12 of Part I   of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Covenantors”
    	
 
    	
means the Group Companies, the Founder and the   Founder Holding Company, and a “Covenantor”   means any of the Covenantors.
    
	
 
    	
 
    	
 
    
	
“Disclosing Party”
    	
 
    	
has the meaning set out in Section 8.4.
    
	
 
    	
 
    	
 
    
	
“Disclosure Letter”
    	
 
    	
has the meaning set out in Section 4.1.
    
	
 
    	
 
    	
 
    
	
“Dispute”
    	
 
    	
has the meaning set out in Section 10.4(a).
    

 

12

 

	
“Encumbrance”
    	
 
    	
means (a) any mortgage, charge, pledge, lien,   hypothecation, deed of trust, title retention, security interest, or other   third-party rights of any kind securing or conferring any priority of payment   in respect of any obligation of any Person, any other restriction or   limitation; (b) any easement or covenant granting a right of use or   occupancy to any Person; (c) any proxy, power of attorney, voting trust   agreement, interest, option, right of first offer, right of pre-emptive   negotiation, or refusal or transfer restriction in favor of any Person; or   (d) any adverse claim as to title, possession, or use, and includes any   agreement or arrange for any of the same.
    
	
 
    	
 
    	
 
    
	
“Environmental Licenses”
    	
 
    	
has the meaning set out in   Section 22(a) of Part I of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“ESOP”
    	
 
    	
has the meaning set out in   Section 2(a)(xi) of Part I of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Fairlubo”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Fairlubo HK”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Fengshang”
    	
 
    	
means Shanghai Fengshang Equity Investment Fund   Partnership (Limited Partnership), a limited partnership established and   existing under the laws of the People’s Republic of China.
    
	
 
    	
 
    	
 
    
	
“Fengshun Lubao”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Fengshun Lubao Principal   Business”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Fengshun Lubao   Restructuring Documents”
    	
 
    	
means the Contracts entered into by and among, inter   alios, equity holders of Fengshun Lubao, Lubao WFOE that provide control to   Fengshun Lubao by Lubao WFOE, including without limitation, (a) the   Exclusive Business Cooperation Agreement entered into by and between Fengshun   Lubao and the Lubao WFOE, dated April 18, 2015; (b) the Equity   Interest Pledge Agreement entered into by and among Fengshun Lubao, Youxin   Yishouche and Lubao WFOE dated August 17, 2016; (c) the Equity   Interest Pledge Agreement entered into by and among Fengshun Lubao, Xing   Zhanming and Lubao WFOE dated August 17, 2015; (d) the Equity   Interest Pledge Agreement entered into by and among Fengshun Lubao, Fengshang   and Lubao WFOE dated August 17, 2016; (e) the Exclusive Option   Agreement entered into by and among Fengshun Lubao, Youxin Yishouche and   Lubao WFOE dated August 17, 2016; (f) the Exclusive Option   Agreement entered into by and among Fengshun Lubao, Xing Zhanming and Lubao   WFOE dated August 17, 2015; (g) the Exclusive Option Agreement entered   into by and among Fengshun Lubao, Fengshang and Lubao WFOE dated   August 17, 2016; (h) the Power of Attorney issued by Youxin   Yishouche to Lubao WFOE on August 17, 2016; (i) the Power of   Attorney issued by Xing Zhanming to Lubao WFOE on August 17, 2015;   (j) the Power of Attorney issued 
    

 

13

 

	
 
    	
 
    	
by Fengshang to Lubao WFOE on August 17, 2016;   (k) the Spousal Consent issued by the spouse of Xing Zhanming on   August 17, 2015, each as amended from time to time.
    
	
 
    	
 
    	
 
    
	
“Financial Statement Date”
    	
 
    	
has the meaning set out in Section 6(a) of   Part I of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Financial Statements”
    	
 
    	
has the meaning set out in Section 6(a) of   Part I of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Financing Terms”
    	
 
    	
has the meaning set out in Section 8.1.
    
	
 
    	
 
    	
 
    
	
“Founder”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Founder Holding Company”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“GloryFin HK”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Government Official”
    	
 
    	
has the meaning set out in   Section 11(c) of Part I of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Governmental Authority”
    	
 
    	
means any government or political subdivision   thereof, whether on a federal, central, state, provincial, municipal or local   level and whether executive, legislative or judicial in nature, including any   agency, authority, board, bureau, commission, court, department or other   instrumentality thereof.
    
	
 
    	
 
    	
 
    
	
“Group Companies”
    	
 
    	
means the Company, UcarEase BVI, Uxin Used Car   Cayman, Perfect Harmony, Uxin HK, GloryFin HK, UcarShow HK, Fairlubo,   Fairlubo HK, UcarBuy BVI, UcarBuy HK, Xin Limited, Xin HK, Lubao WFOE,   Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu   Financing Lease, the WFOE, the PRC Domestic Company, the PRC Subsidiaries,   Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin   Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing,   Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing Xinhong Shanghai, Youxin   Yishouche, Chebole Beijing, Youxin Ruida Assets and all other direct or   indirect, current or future Subsidiaries and branches of the foregoing, and a   “Group Company” means any of the Group   Companies.
    
	
 
    	
 
    	
 
    
	
“HKIAC”
    	
 
    	
has the meaning set out in Section 10.4(b).
    
	
 
    	
 
    	
 
    
	
“Hong Kong”
    	
 
    	
means the Hong Kong Special Administrative Region of   the PRC.
    
	
 
    	
 
    	
 
    
	
“IFRS”
    	
 
    	
means the International Financial Reporting   Standards promulgated by the International Accounting Standards Board (IASB)   (which includes standards and interpretations approved by the IASB and   International Accounting Principles issued under previous 
    

 

14

 

	
 
    	
 
    	
constitutions), together with its pronouncements   thereon from time to time, and applied on a consistent basis.
    
	
 
    	
 
    	
 
    
	
“Indemnified Parties”
    	
 
    	
has the meaning set out in Section 7.1.
    
	
 
    	
 
    	
 
    
	
“Investor”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Issuance Window”
    	
 
    	
has the meaning set out in Section 35 of   Part I of Exhibit F.
    
	
 
    	
 
    	
 
    
	
“WFOE Principal Business”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Kaifeng Principal Business”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Kaifeng Financing Lease”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Key Employees”
    	
 
    	
means key officers or employees as set forth in Exhibit C   hereto.
    
	
 
    	
 
    	
 
    
	
“knowledge”
    	
 
    	
means, with respect to a Person’s “knowledge”, the   actual knowledge of such Person or that knowledge which should have been   acquired by such Person after making such due inquiry and exercising such due   diligence as a prudent business Person would have made or exercised in the management   of his or her business affairs, including due inquiry of those officers,   directors, key employees and professional advisers (including attorneys,   accountants and consultants) of the Person and its Affiliates.
    
	
 
    	
 
    	
 
    
	
“Long-Stop Date”
    	
 
    	
has the meaning set out in Section 9.1.
    
	
 
    	
 
    	
 
    
	
“Losses”
    	
 
    	
means all direct or indirect losses, liabilities,   damages, deficiencies, diminution in value, suits, debts, obligations,   interest, penalties, expenses, judgments or settlements of any nature or   kind, including all costs and expenses related thereto, including without   limitation reasonable attorneys’ fees and disbursements, court costs, amounts   paid in settlement and expenses of investigation, whether at law or in   equity, whether known or unknown, foreseen or unforeseen, of any kind or   nature.
    
	
 
    	
 
    	
 
    
	
“Lubao WFOE”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Material Adverse Effect”
    	
 
    	
means any (a) event, occurrence, fact,   condition, change or development that has had, has, or could reasonably be   expected to have a material adverse effect on the business (as presently   conducted and proposed to be conducted), properties, assets, employees,   operations, results of operations, condition (financial or otherwise),   prospects or liabilities of the Person(s) specified, (b) material   impairment of the ability of any Covenantor to perform its material 
    

 

15

 

	
 
    	
 
    	
obligations under this Agreement or under any other   Transaction Agreement, as applicable, or (c) material impairment of the   validity or enforceability of this Agreement or any other Transaction   Agreement against any Covenantor.
    
	
 
    	
 
    	
 
    
	
“Min Si Lian Hua”
    	
 
    	
means Beijing Min Si Lian Hua Investment Management   Co., Ltd.   (北京敏思联华投资管理有限公司)
    
	
“MOFCOM”
    	
 
    	
means the Ministry of Commerce or its local   counterparts.
    
	
 
    	
 
    	
 
    
	
“New Securities”
    	
 
    	
has the same meaning as set out in the Shareholders   Agreement and the Restated Articles.
    
	
 
    	
 
    	
 
    
	
“Non-Disclosing Party”
    	
 
    	
has the meaning set out in Section 8.4.
    
	
 
    	
 
    	
 
    
	
“Ordinary Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Party” and “Parties”
    	
 
    	
have the respective meanings set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Perfect Harmony”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Person”
    	
 
    	
shall be construed as broadly as possible and shall   include an individual, a partnership (including a limited liability   partnership), a company, an association, a joint stock company, a limited   liability company, a trust, a joint venture (including a Sino-foreign equity   joint venture or Sino-foreign cooperative joint venture), an unincorporated   organization and a Governmental Authority.
    
	
 
    	
 
    	
 
    
	
“PRC”
    	
 
    	
means the People’s Republic of China, solely for   purposes of this Agreement, excluding Hong Kong, the Macau Special   Administrative Region of the PRC and Taiwan.
    
	
 
    	
 
    	
 
    
	
“PRC Domestic Company”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“PRC Domestic Company Restructuring   Documents”
    	
 
    	
means (a) the Amended and Restated Exclusive   Business Cooperation Agreement entered into by and between the WFOE and the   PRC Domestic Company, dated September 11, 2014; (b) the Fourth   Amended and Restated Equity Interest Pledge Agreements entered into by and   among the WFOE, the PRC Domestic Company and Dai Kun dated November 23,   2016; (c) the Amended and Restated Equity Interest Pledge Agreements   entered into by and among the WFOE, the PRC Domestic Company and Min Si Lian   Hua, dated September 11, 2014; (d) the Fourth Amended and Restated   Exclusive Option Agreements entered into by and among the WFOE, the PRC   Domestic Company and Dai Kun dated November 23, 2016; (e) the   Amended and Restated Exclusive Option Agreements entered into by and among   the WFOE, the PRC Domestic Company and Min Si Lian 
    

 

16

 

	
 
    	
 
    	
Hua, dated September 11, 2014; (f) the   Fourth Amended and Restated Power of Attorneys issued by Dai Kun to the WFOE   dated November 23, 2016; (g) the Power of Attorneys issued by Min   Si Lian Hua, to the WFOE, dated September 11, 2014; and (h) the   Spousal Consent Letter issued by Dai Kun’s spouse dated November 23,   2016, each as amended from time to time.
    
	
 
    	
 
    	
 
    
	
“PRC GAAP”
    	
 
    	
means the China Accounting Standards   (企业会计准则) as promulgated and amended   from time to time and their interpretations, guidelines and implementation   rules, which collectively are accepted as generally accepted accounting   principles in the PRC.
    
	
 
    	
 
    	
 
    
	
“PRC Subsidiaries”   and “PRC Subsidiary”
    	
 
    	
have the respective meanings set out in the   Preamble.
    
	
 
    	
 
    	
 
    
	
“Preamble”
    	
 
    	
means the preamble of this Agreement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
“Preferred Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Principals”
    	
 
    	
include any owners, directors, or executives of any   Group Company, of its Subsidiaries or of its Affiliates.
    
	
 
    	
 
    	
 
    
	
“Prohibited Lists”
    	
 
    	
include the Specially Designated Nationals and   Blocked Persons list, and any other publicly available list of terrorists,   terrorist organizations, narcotics traffickers or other similarly proscribed   parties, maintained by the U.S. Department of the Treasury’s Office of   Foreign Assets Control or by any other U.S. Governmental Authorities.
    
	
 
    	
 
    	
 
    
	
“Proprietary Assets”
    	
 
    	
means all patents, patent applications, trademarks,   trademark applications, service marks, trade names, domain names, copyrights,   copyright registrations, licenses, and applications and all other rights   corresponding thereto, inventions, databases and all rights therein, all computer   software including all source code, object code, firmware, development tools,   files, records and data, including all media on which any of the foregoing is   stored, formulas, designs, trade secrets, confidential and proprietary   information, proprietary rights, know-how and processes of a company, and all   documentation related to any of the foregoing.
    
	
 
    	
 
    	
 
    
	
“Recitals”
    	
 
    	
means the recitals of this Agreement.
    
	
 
    	
 
    	
 
    
	
“Registered Intellectual   Property”
    	
 
    	
means all Proprietary Assets of any Group Company, wherever   located, that is the subject of an application, certificate, filing,   registration or other document issued by, filed with or recorded by any   Governmental Authority.
    
	
 
    	
 
    	
 
    
	
“Regulation D”
    	
 
    	
has the meaning set out in Section 5(c) of   Part I of EXHIBIT D.
    

 

17

 

	
“Relevant Period”
    	
 
    	
has the meaning set out in Section 28 of   Part I of EXHIBIT F.
    
	
 
    	
 
    	
 
    
	
“Restated Articles”
    	
 
    	
has the meaning set out in Section 2.1.
    
	
 
    	
 
    	
 
    
	
“Restricted Country”
    	
 
    	
include Iran, Cuba, Sudan or any other country the   government or nationals of which the Investor or any other Person subject to   the jurisdiction of the United States is or becomes prohibited from dealing   with under sanctions or embargo programs administered by the U.S. Department   of the Treasury’s Office of Foreign Assets Control or by any other U.S.   Governmental Authorities.
    
	
 
    	
 
    	
 
    
	
“Restriction Period”
    	
 
    	
has the meaning set out in   Section 28(a) of Part I of EXHIBIT F.
    
	
 
    	
 
    	
 
    
	
“Restructuring Documents”
    	
 
    	
means the Contracts entered into by and among, inter   alios, equity holders of the PRC Domestic Company, the WFOE, the PRC Domestic   Company and other Group Companies (as the case may be) that provide Control   to the WFOE over the PRC Domestic Company (and any other similar Contracts   entered or to be entered into by the Group Companies through which a Group   Company (the “Controller”) Controls   (financially, operationally or otherwise) another Group Company (the “Controlled Company”) and the financial results for such   Controlled Company shall be consolidated into the consolidated financial   statements for the Company even though the Controller does not have any   equity interest in the Controlled Company and designated as “Restructuring   Documents” by the Company and the Investor), including without limitation the   Fengshun Lubao Restructuring Documents, the PRC Domestic Company   Restructuring Documents and the Youxin Yishouche Restructuring Documents.
    
	
 
    	
 
    	
 
    
	
“RMB”
    	
 
    	
means the lawful currency of the PRC.
    
	
 
    	
 
    	
 
    
	
“SAFE”
    	
 
    	
has the meaning set out in   Section 21(c) of Part I of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“SEC”
    	
 
    	
means the U.S. Securities and Exchange Commission.
    
	
 
    	
 
    	
 
    
	
“Securities Act”
    	
 
    	
has the meaning set out in Section 5(b) of   Part I of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Series A Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series A Preferred   Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series A Preferred   Shareholders” or “Series A Preferred   Shareholder”
    	
 
    	
have their respective meanings set out in the   Recitals.
    
	
 
    	
 
    	
 
    
	
“Series A-1 Shares”
    	
 
    	
has the meaning set out in the Recitals.
    

 

18

 

	
“Series B Preferred   Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series B Preferred   Shareholders” or “Series B Preferred   Shareholder”
    	
 
    	
have their respective meanings set out in the   Recitals.
    
	
 
    	
 
    	
 
    
	
“Series C Preferred   Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series C Preferred   Shareholders” or “Series C Preferred   Shareholder”
    	
 
    	
have their respective meanings set out in the   Recitals.
    
	
 
    	
 
    	
 
    
	
“Series C-1   Preferred Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series C-2   Preferred Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series D Preferred   Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series D Preferred   Shareholders” or “Series D Preferred   Shareholder”
    	
 
    	
have their respective meanings set out in the   Recitals.
    
	
 
    	
 
    	
 
    
	
“Series E Preferred Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series E Preferred Shareholders”   or “Series E Preferred Shareholder”
    	
 
    	
have their respective meanings set out in the   Recitals.
    
	
 
    	
 
    	
 
    
	
“Series F Preferred Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series F Preferred Shareholders”   or “Series F Preferred Shareholder”
    	
 
    	
have their respective meanings set out in the   Recitals.
    
	
 
    	
 
    	
 
    
	
“Series G Preferred Shares”
    	
 
    	
has the meaning set out in the Recitals.
    

 

19

 

	
“Series G Preferred Shareholders”   or “Series G Preferred Shareholder”
    	
 
    	
have their respective meanings set out in the   Recitals.
    
	
 
    	
 
    	
 
    
	
“Series G+ Financing”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series G+ Per Share   Price”
    	
 
    	
has the meaning set out in Section 2.2.
    
	
 
    	
 
    	
 
    
	
“Series G+ Preferred Shares”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series G+ Preferred Shareholders”   or “Series G+ Preferred Shareholder”
    	
 
    	
have their respective meanings set out in the   Recitals.
    
	
 
    	
 
    	
 
    
	
“Series G+   Subscription Price”
    	
 
    	
has the meaning set out in Section 2.2.
    
	
 
    	
 
    	
 
    
	
“Shanghai Lubao”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Shareholders Agreement”
    	
 
    	
has the meaning set out in Section 2.1.
    
	
 
    	
 
    	
 
    
	
“Subscribed Shares”
    	
 
    	
has the meaning set out in Section 2.3.
    
	
 
    	
 
    	
 
    
	
“Subsidiary”
    	
 
    	
means, with respect to any given Person, any other   Person that is not an individual and (a) that is Controlled by such   given Person or (b) whose assets, or portions thereof, are consolidated   with the net earnings of the given Person and are recorded on the books of   the given Person for financial reporting purposes in accordance with IFRS.   For the avoidance of doubt, the Subsidiaries of the Company shall include   UcarEase BVI, Uxin Used Car Cayman, Uxin HK, GloryFin HK, UcarShow HK,   Perfect Harmony, Fairlubo, Fairlubo HK, UcarBuy BVI, UcarBuy HK, Xin Limited,   Xin HK, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng   Financing Lease, Boyu Financing Lease, Yougu Shanghai, Youzhen Beijing,   Youxuan Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan   Beijing, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing and Youxin Ruida   Assets. And Subsidiaries of the WFOE shall include Youxin Pengda, Youhan   Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng the PRC Domestic   Company and the PRC Subsidiaries.
    

 

20

 

	
“Tax”
    	
 
    	
means all forms of taxation, withholdings,   deductions, duties, imposts, levies, fees, charges, excises, stamp duty,   social security contributions and rates and any statutory, Government   Authority or local government charges imposed, levied, collected, withheld,   assessed or enforced by any Tax Authority and any interest, penalty,   surcharge, charges or fine or additional taxes in connection therewith and “Taxation” shall have a corresponding meaning.
    
	
 
    	
 
    	
 
    
	
“Tax Authority”
    	
 
    	
means any Tax authority or other authority or   Government Authority competent to impose, assess or enforce any liability to   Tax, wherever situated.
    
	
 
    	
 
    	
 
    
	
“Tianjin Lubao”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Transaction Agreements”
    	
 
    	
has the meaning set out in Section 4 of Part I   of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“UcarBuy BVI”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“UcarBuy HK”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“UcarEase BVI”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Ucar Ease HK”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“US$”
    	
 
    	
means the lawful currency of the United States of   America.
    
	
 
    	
 
    	
 
    
	
“Uxin HK”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Uxin Used Car Cayman”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Xin HK”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Xin Limited”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Xinhong Shanghai”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youfang Beijing”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youtu Beijing”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Yougu Shanghai”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Yougu/ Youfang Principal   Business”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Youhan Shanghai”
    	
 
    	
has the meaning set out in the Preamble.
    

 

21

 

	
“Youxin Auction”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxin Automobile”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxin Business”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxin Shanghai”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxin Shuxiang”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxinpai Auction”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxinpai Sichuan   Auction”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxinpai Second Hand   Car”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxin Chengdu”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxin Principal   Business”
    	
 
    	
has the meaning set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Youxin Ruida Assets”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxin Yishouche”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxin Yishouche   Restructuring Documents”
    	
 
    	
means (a) the Exclusive Business Cooperation   Agreement entered into by and between Youxin Yishouche and Yougu Shanghai,   dated July 13, 2016; (b) the Equity Interest Pledge Agreement   entered into by and among Youxin Yishouche, Dai Kun and Yougu Shanghai dated   July 13, 2016; (c) the Equity Interest Pledge Agreement entered   into by and among Youxin Yishouche, Min Si Lian Hua and Yougu Shanghai dated   July 13, 2016; (d) the Exclusive Option Agreement entered into by   and among Youxin Yishouche, Dai Kun and Yougu Shanghai dated July 13,   2016; (e) the Exclusive Option Agreement entered into by and among   Youxin Yishouche, Min Si Lian Hua and Yougu Shanghai dated July 13,   2016; (f) the Power of Attorney issued by Dai Kun to Yougu Shanghai on   July 13, 2016, each as amended from time to time.
    
	
 
    	
 
    	
 
    
	
“Youxin Yilian”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxin Pengcheng”
    	
 
    	
has the meaning set out in the Preamble.
    

 

22

 

	
“Youxin   Pengda”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxin Yuecheng”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youxuan Beijing”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youyuan Beijing”
    	
 
    	
has the meaning set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Youzhen Beijing”
    	
 
    	
has the meaning set out in the Preamble.
    

 

1.2                               Interpretation.  For all purposes of this Agreement, except as otherwise expressly provided:

 

(a)                                 the terms defined in this Section 1 shall have the meanings assigned to them in this Section 1 and include the plural as well as the singular;

 

(b)                                 all accounting terms not otherwise defined herein have the meanings assigned under IFRS;

 

(c)                                  all references in this Agreement to designated “Sections” and other subdivisions are to the designated Sections and other subdivisions of the body of this Agreement;

 

(d)                                 pronouns of either gender or neuter shall include, as appropriate, the other pronoun forms;

 

(e)                                  the words “herein”, “hereof”, and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision;

 

(f)                                   all references in this Agreement to designated exhibits or schedules are to the exhibits or schedules attached to this Agreement unless explicitly stated otherwise;

 

(g)                                  “include”, “includes”, “including”, and other words of similar import are deemed to be followed by “without limitation” whether or not they are in fact followed by such words or words of like import;

 

(h)                                 the titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement;

 

(i)                                     any reference in this Agreement to any “Party” or any other Person shall be construed so as to include its successors in title, permitted assigns, permitted transferees and any Person deriving title under them;

 

(j)                                    any reference in this Agreement to any agreement or instrument is a reference to that agreement or instrument as amended or novated;

 

(k)                                 references to statutory provisions shall be construed as references to those provisions as respectively amended or re-enacted (whether before or after the date of 

 

23

 

this Agreement) from time to time and shall include any provision of which they are re-enactments (whether with or without modification) and any subordinate legislation made under such statutory provisions; and

 

(l)                                     this Agreement shall be construed according to its fair language. The rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement.

 

1.3                               Schedules and Exhibits.  The recitals, the schedules and the exhibits form part of this Agreement and shall have the same force and effect as if expressly set out in the body of this Agreement and any reference to this Agreement shall include the recitals, the schedules and the exhibits.

 

2.                                      AGREEMENT TO PURCHASE AND ALLOT SHARES

 

2.1                               Authorization. As of the Closing, the Company will have authorized the issuance of 135,844 Series G+ Preferred Shares pursuant to the terms and conditions of this Agreement, having the rights, preferences, privileges and restrictions as set forth in the amended and restated Memorandum and Articles of Association of the Company (the “Restated Articles”) and in the amended and restated shareholders agreement (the “Shareholders Agreement”) to the satisfaction of the Investor and all the shareholders in the Company.

 

2.2                               Agreement to Issue and Subscribe. Subject to the terms and conditions hereof, the Company hereby agrees to issue and allot to the Investor, the Investor hereby agrees to subscribe from the Company, on the date of the Closing, at the price of US$36.806924 per share (the “Series G+ Per Share Price”), such number of Series G+ Preferred Shares as set forth opposite the Investor’s name in Part III of EXHIBIT A.  The aggregate subscription price to be paid by the Investor to the Company is US$5,000,000 (the “Series G+ Subscription Price”), payable in the manner set forth in Section 3, at the Closing (as defined below).

 

2.3                               Subscribed Shares and Conversion Shares.  The Series G+ Preferred Shares to be subscribed pursuant to this Agreement by the Investor are collectively referred to in this Agreement as the “Subscribed Shares,” and the Ordinary Shares issuable upon conversion of the Series G+ Preferred Shares are collectively referred to in this Agreement as the “Conversion Shares”.

 

2.4                               Payment of Series G+ Subscription Price.   The Invesor shall pay the Series G+ Subscription Price for which it is responsible according to Part III of EXHIBIT A by wire transfer of immediately available funds as soon as possible before the Closing (as defined below), to the bank account the details of which shall be specified by the Company in writing or by such other payment methods as may be mutually agreed by the Company and the Investor, and all bank charges and related expenses for remittance and receipt of funds shall be for the account of the Company.  In the event that the Closing (as defined below) does not take place within five (5) Business Days after the Company has received all Series G+ Subscription Price from the Investor, the Company agrees to remit back all Series G+ Subscription Price to the bank account the details of which shall be specified by the Investor in writing and the payment of the Seires G+ Subscription Price shall be made in a way as then agreed by Parties.

 

24

 

3.                                      CLOSINGS; DELIVERIES

 

3.1                               Closing. The purchase and sale of the Subscribed Shares (the “Closing”) shall take place remotely via the exchange of closing documents and signatures as set forth in Section 3.2(b) on the date that is within five (5) Business Days after the satisfaction or waiver of all the conditions set forth in Section 6.1 and Section 6.2 hereto (other than conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions), or at such other time and date as may be mutually agreed upon by the Company and the Investor.

 

3.2                               Closing Deliveries.  At the Closing:

 

(a)                                  The Investor shall execute and deliver to the Company signature pages to the Transaction Agreements to which it is a party remotely via facsimile or electronic mail, or by such other methods as mutually agreed by the Company and the Investor; and

 

(b)                                 The Company shall (i) deliver to the Investor, free and clear of any Encumbrance, a share certificate registered in its name, evidencing the number of the Series G+ Preferred Shares subscribed by the Investor hereunder, (ii) enter the Investor in the register of members of the Company as a holder of the Series G+ Preferred Shares subscribed by the Investor hereunder, free and clear of any Encumbrance, evidencing such Series G+ Preferred Shares as having been issued and credited as fully paid, (iii) deliver to the Investor a copy of the register of members of the Company reflecting the issuance of the Series G+ Preferred Shares subscribed by the Investor hereunder, certified as a true and correct copy by the registered agent or a director of the Company, and (iv) deliver to the Investor all other items required at the Closing under Section 6.1.

 

4.                                      REPRESENTATIONS AND WARRANTIES

 

4.1                               Representations and Warranties of Covenantors.  Except as set forth in the disclosure letter dated the date hereof delivered by the Covenantors to the Investor and attached hereto as EXHIBIT I (the “Disclosure Letter”) (which Disclosure Letter shall be deemed to modify the representations and warranties set forth in EXHIBIT D):

 

(a)                                 the Covenantors, jointly and severally, hereby represent and warrant to the Investor that the representations and warranties set forth in Part I of EXHIBIT D are true, correct, complete and not misleading as of the date hereof and will be true, correct, complete and not misleading as of the date of the Closing (except for such representations and warranties that speak as of a particular date, in which case, such representations and warranties shall be true, correct, complete and not misleading as of such date); and

 

(b)                                 the Founder hereby further represents and warrants to the Investor that the representations and warranties set forth in Part II of EXHIBIT D are true, correct, complete and not misleading as of the date hereof and will be true, correct, complete and not misleading as of the date of the Closing (except for such representations and warranties that speak as of a particular date, in which case, such representations and warranties shall be true, correct, complete and not misleading as of that date).

 

4.2                               Representations and Warranties of the Investor. The Investor hereby represents and warrants to the Company that the representations and warranties set forth in EXHIBIT E are true as of the date hereof and will be true as of the date of the Closing.

 

25

 

5.                                      COVENANTS

 

5.1                                Each of the Covenantors jointly and severally covenants to the Investor the full compliance of each provision set forth in Part I of EXHIBIT F.

 

5.2                                The Investor covenants to each Covenantor the full compliance of each provision set forth in Part II of EXHIBIT F.

 

6.                                      CLOSING CONDITIONS

 

6.1                               Conditions to the Investor’s Obligations at Closing.  The obligation of the Investor under Section 3.2(a) is subject to the fulfillment by the Covenantors, on or prior to the date of the Closing, to the satisfaction of, or otherwise waiver in writing by the Investor, of all the conditions as set forth in EXHIBIT G.

 

6.2                               Conditions to the Company’s Obligations at Closing.  The obligation of the Company to allot and issue the Series G+ Preferred Shares subscribed by the Investor hereunder to the Investor at the Closing is subject to the fulfillment by the Investor, or otherwise waiver in writing by the Company, of the conditions as set forth in EXHIBIT H.

 

7.                                      INDEMNIFICATION

 

7.1                               Indemnification to the Investor.  Subject to Section 7.2 below, the Covenantors shall jointly and severally indemnify, defend and hold harmless the Investor, each Group Company and their respective Affiliates, together with the employees, officers, directors, managing directors, shareholders and partners of the foregoing (the “Indemnified Parties”), from and against any and all Losses, directly or indirectly, arising out of, relating to, connected with or incidental to (a) any breach of any representation (except as specifically disclosed in the Disclosure Letter), warranty, covenant or agreement made by any of the Covenantors in this Agreement or in any Transaction Agreements; or (b) any liability or penalty which has been made or imposed or may hereafter be made or imposed by any Governmental Authority or any other Person wholly or partly in respect of or in consequence of any event with respect to any Covenantor occurring on or before the Closing, except as specifically disclosed in the Disclosure Letter; or (c) any claim for Tax of whatever type (including without limitation national, provincial or local income, sales, real and personal property, gross receipt, capital stock, business, employment, social insurance related or withholding Tax, or any other type of Tax, assessment or duty), whether disclosed in the Disclosure Letter or not, which has been made or may hereafter be made wholly or partly in respect of or in consequence of any event with respect to any Covenantor occurring (including failure to withhold), or any income, profits or gains earned, accrued or received by such Person, on or before the Closing and which is not reflected in the Financial Statements, including without limitation any claim for Tax in respect of or in consequence of (i) any transfer, redemption or repurchase of any share or equity interest in the Company, the WFOE or GloryFin HK up to the date hereof and since 2014; or (ii) the transaction on May 31, 2016 where Uxin HK transferred its equity interet in the WFOE to the then shareholders of the WFOE.  The rights contained in this Section 7.1 shall not be deemed to preclude or otherwise limit in any way the exercise of any other rights or pursuit of other remedies for the breach of any Transaction Agreement or with respect to any misrepresentation thereunder.  The agreements in this Section 7 shall survive any termination of this Agreement.

 

26

 

Notwithstanding any provision to the contrary in this Agreement, the Investor may, in its sole discretion, require that any or all of the Covenantors to satisfy the entirety of an obligation under Section 7.1, without first requiring contribution from other Covenantors, but no Group Company shall exercise its rights to indemnification under Section 7.1 unless with prior written consent of the Investor.

 

7.2                               Limitation.  The Parties acknowledge and agree that the maximum liability of the Covenantors towards the Investor in respect of any breach of representation made under Section 4.1 shall not exceed the Series G+ Subscription Price actually paid by the Investor.  Notwithstanding the foregoing, the foregoing limitation shall not be applied to any other breach, obligation or liability of any Covenantor under any Transaction Agreement, at law or in equity; provided that, in which case, the indemnification amount under this Section 7 shall be determined by the award of the arbitration tribunal in accordance with Section 10.4 of this Agreement.

 

7.3                               Survival of Warranties.  The representations of the Covenantors contained in or made pursuant to Section 4 of this Agreement shall survive the execution and delivery of this Agreement, and shall survive the Closing.

 

7.4                               Undertaking.  For the avoidance of doubt, each of the Covenantors hereby agrees and covenants that (a) it will not challenge or raise a defense to any claim against any Covenantor or the exercise of any right or remedy against any Covenantor (whether under this Section 7 or any other provision of this Agreement or any other Transaction Agreement) on the grounds that such claim, right or remedy is not enforceable or permitted by Applicable Law, and (b) it will do all such things and undertake all such actions, including without limitation any applications to and registrations with the Governmental Authorities and any other protective measures reasonably requested by the Investor, to ensure that the agreement of the Parties with respect to joint and several liability of the Covenantors under the Transaction Agreements is given full force and effect.

 

8.                                      CONFIDENTIALITY AND NON-DISCLOSURE

 

8.1                               Disclosure of Terms. The terms and conditions of this Agreement and all exhibits and schedules attached hereto (collectively, the “Financing Terms”), including their existence, shall be considered confidential information and shall not be disclosed by any Party hereto to any third party except as the Company and the Investor shall mutually agree otherwise or in accordance with the provisions set forth below; provided that such confidential information shall not include any information that is in the public domain other than caused by the breach of the confidentiality obligations hereunder.

 

8.2                               Press Releases, Etc. Any press release issued by Parties other than the Investor and/or their Affiliates shall not disclose any of the Financing Terms and the final form of such press release shall be approved in advance in writing by the Investor.  No other announcement regarding any of the Financing Terms in a press release, conference, advertisement, announcement, professional or trade publication, mass marketing materials or otherwise to the general public may be made without the prior written consent of the Investor.  Unless approved by the Investor, the Parties (other than the Investor) and/or their Affiliates shall not use the Investor’s name in any manner, context or format (including but not limited to reference on or links to website, press release, etc.).

 

27

 

8.3                               Permitted Disclosures. Notwithstanding the foregoing, any Party may disclose any of the Financing Terms:

 

(a)                                 to the extent required by Applicable Law or the rules of any stock exchange;

 

(b)                                 to its officers, directors, employees and professional advisors on a need-to-know basis for the performance of its obligations in connection herewith so long as such Party advises each Person to whom any Financing Term is so disclosed as to the confidential nature thereof;

 

(c)                                  in the case of the Investor, its fund manager, other funds managed by its fund manager and their respective auditors, counsel, directors, officers, employees, shareholders, partners or investors for the purposes of fund reporting or inter-fund reporting so long as the Investor advises each Person to whom any Financing Term is so disclosed as to the confidential nature thereof; and

 

(d)                                 to its current or bona fide prospective investors, investment bankers and any Person otherwise providing substantial debt or equity financing to such Party so long as the Party advises each Person to whom any Financing Term is so disclosed as to the confidential nature thereof.

 

8.4                               Legally Compelled Disclosure.  In the event that any Party is requested or becomes legally compelled (including without limitation, pursuant to securities laws and regulations or rules of any stock exchange) to disclose the Financing Terms (including their existence), such Party (the “Disclosing Party”) shall, to the extent legally permissible, provide the other Parties (the “Non-Disclosing Parties”) with prompt written notice of that fact and use all reasonable endeavors to seek (with the cooperation and reasonable endeavors of the other Parties) a protective order, confidential treatment or other appropriate remedy.  In such event, the Disclosing Party shall furnish only that portion of the information which is legally required to be disclosed and shall exercise reasonable endeavors to keep confidential such information to the extent reasonably requested by any Non-Disclosing Party.

 

8.5                               Other Information. The provisions of this Section 8 shall be in addition to, and not in substitution for, the provisions of any separate nondisclosure agreement executed by any of the Parties with respect to the transactions contemplated hereby.

 

8.6                               No Use of Investor’s Name. Without the prior written consent of the Investor, none of the Parties other than the Investor shall use, publish, reproduce, or refer to the Investor’s name (including similar names), trademark or logo in any discussion, documents or materials for marketing or advertising purposes.

 

8.7                               Notices. All notices required under this Section 8 shall be made pursuant to Section 10.6 of this Agreement.

 

9.                                      TERMINATION

 

9.1                               Termination of Agreement.  Notwithstanding any provision to the contrary in any Transaction Agreement, this Agreement may be terminated by the Investor, in respect of its investment in the Company, at any time after March 6, 2017, the 90th day following the execution of this Agreement (the “Long-Stop Date”), by written notice to the Company, if

 

28

 

the Closing has not occurred on or prior to the Long-Stop Date; provided that the right to terminate this Agreement pursuant to this Section 9.1 shall not be available to the Investor if the Investor’s material breach of this Agreement has resulted in the failure of the Closing to be consummated by such time. Such termination under this Section 9 shall be without prejudice to any claims for damages or other remedies that the Investor may have under this Agreement, any other Transaction Agreement or applicable Law.

 

9.2                               Effect of Termination.  If this Agreement is terminated pursuant to the provisions of Section 9.1 above, this Agreement shall become void and have no further effect as between the Covenantors and the Investor; provided, that no Party shall be relieved of any liability of any nature for a breach of this Agreement or for any misrepresentation hereunder, nor shall such termination be deemed to constitute a waiver of any available remedy (including specific performance if available) for any such breach or misrepresentation.

 

9.3                               Survival.  Notwithstanding any provision to the contrary, the provisions of Section 7 (Indemnification), Section 8 (Confidentiality and Non-Disclosure), this Section 9 (Termination), and Section 10 (Miscellaneous) shall survive any expiration or termination of this Agreement.

 

10.                               MISCELLANEOUS

 

10.1                        Binding Effect; Assignment.  This Agreement shall be binding on and shall enure for the benefit of the successors, heirs, executors and administrators and permitted transferees and assignees of the Parties hereto but shall not be capable of being assigned or transferred by any Covenantor without the prior consent in writing of the Investor.  This Agreement and the rights and obligations herein may not be assigned and transferred by the Investor to any Person (other than its Affiliates) unless with the written consent of the Company; for the avoidance of doubt, this Agreement and the rights and obligations herein may be assigned and transferred by the Investor to its Affiliates without the written consent of the other Parties hereto.

 

10.2                        Expenses. Each Party shall pay all of its own costs and expenses incurred in connection with the negotiation, execution, delivery and performance of this Agreement and other Transaction Agreements and the transactions contemplated hereby and thereby.  No Party shall be liable to any other party for any fee, cost or expense of any investment banker, investment advisor, broker, finder or agent employed or alleged to have been employed by, or claiming by or through, any other party in connection with the transaction as contemplated in the Transaction Agreements.

 

10.3                        Governing Law.  This Agreement shall be governed by and construed in all respects in accordance with the laws of Hong Kong, without regard to principles of conflict of laws thereunder.

 

10.4                        Dispute Resolution.

 

Any dispute, controversy or claim (each, a “Dispute”) arising out of or relating to this Agreement or the interpretation, breach, termination or validity hereof shall be submitted to arbitration in accordance with the UNCITRAL Arbitration Rules as at present in force upon the request of any Party to the Dispute with notice to each other Party to the Dispute (the “Arbitration Notice”).  However, if such rules are in conflict with the 

 

29

 

provisions of this Section 10.4, including the provisions concerning the appointment of arbitrators below, the provisions of this Section 10.4 shall prevail.

 

(a)                                  The place of arbitration shall be Hong Kong at the Hong Kong International Arbitration Centre (the “HKIAC”).  The appointing authority shall be the HKIAC.

 

(b)                                  There shall be three (3) arbitrators.  The Investor shall choose one (1) arbitrator, the Covenantors shall collectively choose one (1) arbitrator and the two (2) arbitrators shall jointly select the third arbitrator who shall act as the presiding arbitrator of the arbitration tribunal.  If any of the members of the arbitration tribunal have not been appointed within thirty (30) days after the Arbitration Notice is given, the relevant appointment(s) shall be made by the Secretary General of the HKIAC.

 

(c)                                   The language to be used in the arbitration proceedings shall be English.

 

(d)                                  The costs of arbitration shall be borne by the losing Party, unless otherwise determined by the arbitration tribunal.

 

(e)                                   When any Dispute occurs and when any Dispute is under arbitration, except for the matters in dispute, the Parties shall continue to fulfill their respective obligations and shall be entitled to exercise their rights under this Agreement.

 

(f)                                    The award of the arbitration tribunal shall be final and binding upon the Parties, and the prevailing Party may apply to a court of competent jurisdiction for enforcement of such award.

 

(g)                                   Any Party shall be entitled to seek preliminary injunctive relief from any court of competent jurisdiction pending the constitution of the arbitration tribunal.

 

10.5                        Entire Agreement.  This Agreement, other Transaction Agreements and any transaction agreement the execution of which is contemplated hereunder and thereunder and the schedules and exhibits hereto and thereto constitute and contain the entire agreement and understanding of the Parties with respect to the subject matter hereof and thereof and supersede any and all prior written or oral negotiations, correspondence, agreements, understandings, duties or obligations between the Parties respecting the subject matter hereof and thereof.

 

10.6                        Notices.  Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to the other Parties, upon delivery; (b) when sent by facsimile at the number set forth on Part V of EXHIBIT A hereto, upon receipt of confirmation of error-free transmission; (c) when sent by electronic mail at the address set forth on Part V of EXHIBIT A hereto, on the same day that it was sent and it shall not be necessary for the receipt of the electronic mail to be acknowledged by the recipient; (d) seven (7) Business Days after deposit in the mail as air mail or certified mail, receipt requested, postage prepaid and addressed to the other Parties as set forth on Part V of EXHIBIT A hereto; or (e) three (3) Business Day after deposit with an international overnight delivery service, postage prepaid, addressed to the other Parties as set forth on Part V of EXHIBIT A hereto with next Business Day delivery guaranteed, provided that the sending Party receives a confirmation of delivery from the delivery service provider.

 

30

 

A Party may change or supplement the facsimile number, electronic mail address or mailing address given in Part V of EXHIBIT A, or designate an additional facsimile number, electronic mail address or mailing address, for purposes of this Section 10.6 by giving the other Parties written notice of the new facsimile number, electronic mail address or mailing address in the manner set forth above.

 

10.7                        Amendments and Waivers.

 

(a)                                 Any provision of this Agreement may be amended only with the written consent of the Company and the Investor.

 

(b)                                 Any amendment effected in accordance with this Section 10.7 shall be binding upon the Parties hereto and their respective permitted transferees, assignees and successors in interest.

 

(c)                                  Notwithstanding anything to the contrary in this Section 10.7, no amendment to this Agreement shall be effective or enforceable against any Party unless a copy of the final executed version of the amendment shall be provided to such Party.

 

(d)                                 Notwithstanding the foregoing, any Party may waive the observance as to such Party of any provision of this Agreement which such Party has a right to enforce (either generally or in a particular instance, and either retroactively or prospectively) by an instrument in writing signed by such Party without obtaining the consent of any other Party.  No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

10.8                        Delays or Omissions.  No delay or omission in exercising any right, power or remedy accruing to any Party hereto, upon any breach or default of any other Party under this Agreement, shall impair any such right, power or remedy of such Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character on the part of any Party of any breach or default under this Agreement or any waiver of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Agreement, or by law or otherwise afforded to any Party shall be cumulative and not alternative.

 

10.9                        Severability.  If any provision of this Agreement is found to be invalid or unenforceable, then such provision shall be construed, to the extent feasible, so as to render the provision enforceable and to provide for the consummation of the transactions contemplated hereby on substantially the same terms as originally set forth herein, and if no feasible interpretation would save such provision, it shall be severed from the remainder of this Agreement, which shall remain in full force and effect unless the severed provision is essential to the rights or benefits intended by the Parties.  In such event, the Parties shall use best endeavours to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which most nearly effects the Parties’ intent in entering into this Agreement.

 

31

 

10.10                 Adjustments for Share Splits, Etc.  Wherever in this Agreement there is a reference to a specific number of Series A Preferred Shares, Series B Preferred Shares, Series C Preferred Shares, Series D Preferred Shares, Series E Preferred Shares, Series F Preferred Shares, Series G Preferred Shares, Series G+ Preferred Shares or Ordinary Shares of the Company, then, upon the occurrence of any subdivision, combination or share dividend of the Series A Preferred Shares, Series B Preferred Shares, Series C Preferred Shares, Series D Preferred Shares, Series E Preferred Shares, Series F Preferred Shares, Series G Preferred Shares, Series G+ Preferred Shares or Ordinary Shares, the specific number of shares so referenced in this Agreement shall automatically be proportionally adjusted to reflect the effect on the outstanding shares of such class or series of shares by such subdivision, combination or share dividend.

 

10.11                 Specific Performance etc.  The Parties unconditionally and irrevocably acknowledge, agree and declare that it is impossible to measure in money the damages that would be suffered by a Party by reason of the failure by any other Party to perform any of the obligations under any this Agreement or other Transaction Agreements.  Therefore, if any Party shall institute any action or proceeding to enforce the provisions hereof or thereof (including without limitation seeking protective orders, injunctive relief, specific performance and other remedies available at law or in equity), any Party against whom such action or proceeding is brought hereby waives any claim or defense therein that the other Parties have an adequate remedy at law.

 

10.12                 No Commitment for Additional Financing.  Each Covenantor acknowledges and agrees that the Investor has not made any representation, undertaking, commitment or agreement to provide or assist any Group Company in obtaining any financing, investment or other assistance, other than the purchase of the Subscribed Shares as set forth herein and subject to the conditions set forth herein.  In addition, each Covenantor acknowledges and agrees that (a) no oral statements made by the Investor or its representatives on or after the date of this Agreement shall create an obligation, commitment or agreement to provide or assist any Group Company in obtaining any financing or investment, (b) none of the Group Companies shall rely on any such statement by the Investor or its representatives and (c) an obligation, commitment or agreement to provide or assist any Group Company in obtaining any financing or investment may only be created by a written agreement, signed by the Investor and the relevant Group Company, setting forth the terms and conditions of such financing or investment and stating that the parties intend for such writing to be a binding obligation or agreement.  The Investor shall have the right, in its sole and absolute discretion, to refuse or decline to participate in any other financing of or investment in any Group Company, and shall have no obligation to assist or cooperate with any Group Company in obtaining any financing, investment or other assistance.

 

10.13                 Series G+ Financing. The Parties acknowledge and agree that, the Company may issue and allot additional Series G+ Preferred Shares to other investors, in connection with the Series G+ Financing.

 

10.14                 Counterparts.  This Agreement may be executed and delivered by facsimile or other electronic signature and in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

 

[SIGNATURE PAGE TO FOLLOW]

 

32

 

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

 

COMPANY:

 

UXIN LIMITED

 

	
By:
    	
 /s/DAI KUN
    	
 
    
	
Name:
    	
 DAI KUN (戴琨)
    	
 
    
	
Title:
    	
 Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

UCAREASE BVI:

 

UCAREASE HOLDING LIMITED

 

	
By:
    	
 /s/DAI KUN
    	
 
    
	
Name:
    	
 DAI KUN (戴琨)
    	
 
    
	
Title:
    	
 Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

UXIN USED CAR CAYMAN:

 

UXIN USED CAR LIMITED

 

	
By:
    	
 /s/DAI KUN
    	
 
    
	
Name:
    	
 DAI KUN (戴琨)
    	
 
    
	
Title:
    	
 Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

PERFECT HARMONY:

 

PERFECT HARMONY GROUP LIMITED

 

	
By:
    	
 /s/DAI KUN
    	
 
    
	
Name:
    	
 DAI KUN (戴琨)
    	
 
    
	
Title:
    	
 Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

UXIN HK:

 

UXIN HONG KONG LIMITED

(優信互聯香港有限公司)

 

	
By:
    	
 /s/DAI KUN
    	
 
    
	
Name:
    	
 DAI KUN (戴琨)
    	
 
    
	
Title:
    	
 Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

GLORYFIN HK:

 

GLORYFIN INTERNATIONAL GROUP HOLDING COMPANY LIMITED

(錦融國際控股集團有限公司)

 

	
By:
    	
 /s/DAI KUN
    	
 
    
	
Name:
    	
 ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
 Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

UCARSHOW HK:

 

UCARSHOW HK LIMITED

(優車秀香港有限公司)

 

	
By:
    	
 /s/DAI KUN
    	
 
    
	
Name:
    	
 DAI KUN (戴琨)
    	
 
    
	
Title:
    	
 Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

FAIRLUBO:

 

FAIRLUBO AUCTION COMPANY LIMITED

 

	
By:
    	
 /s/DAI KUN
    	
 
    
	
Name:
    	
 DAI KUN (戴琨)
    	
 
    
	
Title:
    	
 Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
FAIRLUBO   HK:
    	
 
    
	
 
    	
 
    
	
FAIRLUBO AUCTION HK COMPANY   LIMITED
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/DAI KUN
    	
 
    
	
Name:
    	
DAI KUN (戴琨)
    	
 
    
	
Title:
    	
Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
UCARBUY   BVI:
    	
 
    
	
 
    	
 
    
	
UCARBUY HOLDING LIMITED
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/DAI KUN
    	
 
    
	
Name:
    	
DAI KUN (戴琨)
    	
 
    
	
Title:
    	
Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
XIN LIMITED
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/DAI KUN
    	
 
    
	
Name:
    	
DAI KUN (戴琨)
    	
 
    
	
Title:
    	
Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
XIN HK LIMITED
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/DAI KUN
    	
 
    
	
Name:
    	
DAI KUN (戴琨)
    	
 
    
	
Title:
    	
Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
UCARBUY HK:
    	
 
    
	
 
    	
 
    
	
UCARBUY HK LIMITED
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/DAI KUN
    	
 
    
	
Name:
    	
DAI KUN (戴琨)
    	
 
    
	
Title:
    	
Director
    	
 
    

 

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
LUBAO WFOE:
    	
 
    
	
 
    	
 
    
	
BEIJING YOUXIN FENGSHUN   LUBAO VEHICLE AUCTION CO., LTD.
    
	
(北京优信丰顺路宝机动车拍卖有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/XING ZHANMING
    	
 
    
	
Name:
    	
XING ZHANMING (邢占明)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
FENGSHUN LUBAO:
    	
 
    
	
 
    	
 
    
	
BEIJING FENGSHUN LUBAO   VEHICLE AUCTION CO., LTD.
    
	
(北京丰顺路宝机动车拍卖有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/XING ZHANMING
    	
 
    
	
Name:
    	
XING ZHANMING (邢占明)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
SHANGHAI LUBAO:
    	
 
    
	
 
    	
 
    
	
SHANGHAI FENGSHUN LUBAO VEHICLE AUCTION   CO., LTD.
    
	
(上海丰顺路宝机动车拍卖有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/HUANG SHUO
    	
 
    
	
Name:
    	
HUANG SHUO (黄硕)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
TIANJIN LUBAO:
    	
 
    
	
 
    	
 
    
	
TIANJIN FENGSHUN LUBAO VEHICLE CONSULTING   CO., LTD.
    
	
(天津丰顺路宝机动车信息咨询服务有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/HUANG SHUO
    	
 
    
	
Name:
    	
HUANG SHUO (黄硕)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
KAIFENG   FINANCING LEASE:
    	
 
    
	
 
    	
 
    
	
KAIFENG FINANCING LEASE   (HANGZHOU) CO., LTD.
    	
 
    
	
(凯枫融资租赁(杭州)有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
BOYU   FINANCING LEASE:
    	
 
    
	
 
    	
 
    
	
BOYU FINANCING LEASE   (TIANJIN) CO., LTD.
    	
 
    
	
(博裕融资租赁(天津)有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
WFOE:
    	
 
    
	
 
    	
 
    
	
YOUXINPAI (BEIJING)   INFORMATIONTECHNOLOGY CO., LTD.
    
	
(优信拍(北京)信息科技有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
PRC DOMESTIC COMPANY:
    	
 
    
	
 
    	
 
    
	
YOUXIN INTERNET (BEIJING)   INFORMATIONTECHNOLOGY CO., LTD.
    
	
(优信互联(北京)信息技术有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN(曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
PRC SUBSIDIARY:
    	
 
    
	
 
    	
 
    
	
YOUTU (BEIJING)   TRANSPORTATIONAGENT CO., LTD.
    
	
(优途(北京)运输代理有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/LI SHUBO
    	
 
    
	
Name:
    	
LI SHUBO (李舒波)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
PRC SUBSIDIARY:
    	
 
    
	
 
    	
 
    
	
YOUXINPAI (BEIJING)   AUCTION CO., LTD.
    	
 
    
	
(优信拍(北京)拍卖有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/CHEN GUANG
    	
 
    
	
Name:
    	
CHEN GUANG(陈光)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
PRC SUBSIDIARY:
    	
 
    
	
 
    	
 
    
	
SICHUAN YOUXINPAI AUCTION   CO., LTD.
    	
 
    
	
(四川优信拍拍卖有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/JING WENBING
    	
 
    
	
Name:
    	
JING WENBING (井文兵)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
PRC SUBSIDIARY:
    	
 
    
	
 
    	
 
    
	
YOUXINPAI (BEIJING)   SECOND HAND CAR APPRAISAL AND EVALUATION CO., LTD.
    
	
(优信拍(北京)二手车鉴定评估有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/LI YANG
    	
 
    
	
Name:
    	
LI YANG (李洋)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
PRC SUBSIDIARY:
    	
 
    
	
 
    	
 
    
	
YOUXINHULIAN (BEIJING)   BUSINESS ANDTRADE CO., LTD.
    
	
(优信互联(北京)商贸有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/LI SHUBO
    	
 
    
	
Name:
    	
LI SHUBO (李舒波)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUXIN RUIDA ASSESTS:
    	
 
    
	
 
    	
 
    
	
BEIJING YOUXIN RUIDA   ASSETS MANAGEMENT CO., LTD.
    
	
(北京优信睿达资产管理有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
PRC SUBSIDIARY:
    	
 
    
	
 
    	
 
    
	
BEIJING YOUXIN YILIAN   INVESTMENT CO., LTD.
    	
 
    
	
(北京优信易联投资有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/JING WENBING
    	
 
    
	
Name:
    	
JING WENBING (井文兵)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
PRC SUBSIDIARY:
    	
 
    
	
 
    	
 
    
	
CHENGDU YOUXIN JINCHENG   SECOND HAND CAR MARKET CO., LTD.
    
	
(成都优信锦城二手车市场有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/JING WENBING
    	
 
    
	
Name:
    	
JING WENBING (井文兵)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
PRC SUBSIDIARY:
    	
 
    
	
 
    	
 
    
	
SHENZHEN YOUXIN PENGCHENG   SECOND HAND CAR TRADE MARKET CO., LTD.
    
	
(深圳市优信鹏城二手车交易市场有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/JING WENBING
    	
 
    
	
Name:
    	
JING WENBING (井文兵)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUXIN PENGDA:
    	
 
    
	
 
    	
 
    
	
SHENZHEN YOUXIN PENGDA   SECOND HAND CAR BROKERAGE CO., LTD.
    
	
(深圳市优信鹏达二手车经纪有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/LI SHUBO
    	
 
    
	
Name:
    	
LI SHUBO (李舒波)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUHAN   SHANGHAI:
    	
 
    
	
 
    	
 
    
	
YOUHAN (SHANGHAI) INFORMATION TECHNOLOGY   CO., LTD.
    
	
(上海优晗信息科技有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUXIN   AUCTION:
    	
 
    
	
 
    	
 
    
	
YOUXIN (SHANGHAI) AUCTION CO., LTD.
    	
 
    
	
(优信(上海)拍卖有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUXIN   AUTOMOBILE:
    	
 
    
	
 
    	
 
    
	
YOUXIN AUTOMOBILE ONLINE TRADE MARKET SERVICE   CO., LTD.
    
	
(优新机动车网上交易市场服务有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUXIN   YUECHENG:
    	
 
    
	
 
    	
 
    
	
GUANGZHOU YOUXIN YUECHENG SECOND HAND CAR   SEREVICES CO., LTD.
    
	
(广州市优信粤诚二手车服务有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/XIE DONG
    	
 
    
	
Name:
    	
XIE DONG (谢东)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUGU   SHANGHAI:
    	
 
    
	
 
    	
 
    
	
YOUGU (SHANGHAI)   INFORMATION TECHNOLOGY CO., LTD.
    
	
(优估(上海)信息科技有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUXUAN BEIJING:
    	
 
    
	
 
    	
 
    
	
YOUXUAN (BEIJING) INFORMATION TECHNOLOGY   CO., LTD.
    
	
(优轩(北京)信息科技有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUZHEN BEIJING:
    	
 
    
	
 
    	
 
    
	
YOUZHEN (BEIJING) BUSINESS CONSULTING   CO., LTD.
    
	
(优臻(北京)商务咨询有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUFANG BEIJING:
    	
 
    
	
 
    	
 
    
	
YOUFANG (BEIJING) INFORMATION TECHNOLOGY   CO., LTD.
    
	
(优舫(北京)信息科技有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUXIN SHUXIANG:
    	
 
    
	
 
    	
 
    
	
YOUXIN SHUXIANG (BEIJING) INFORMATION TECHNOLOGY   CO., LTD.
    
	
(优信数享(北京)信息技术有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUXIN SHANGHAI:
    	
 
    
	
 
    	
 
    
	
YOUXIN (SHANGHAI) SECOND HAND CAR BUSINESS   CO., LTD.
    
	
(优歆(上海)二手车经营有限公司)
    	
 
    
	
[Company seal   is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUYUAN BEIJING:
    	
 
    
	
 
    	
 
    
	
YOUYUAN (BEIJING) INFORMATION TECHNOLOGY   CO., LTD.
    
	
(优辕(北京)信息科技有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
XINHONG SHANGHAI:
    	
 
    
	
 
    	
 
    
	
XINHONG (SHANGHAI) INFORMATION TECHNOLOGY   CO., LTD.
    
	
(新宏(上海)信息科技有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
YOUXIN YISHOUCHE :
    	
 
    
	
 
    	
 
    
	
YOUXIN YISHOUCHE   (BEIJING) INFORMATION TECHNOLOGY CO., LTD.
    
	
(优信易手车(北京)信息技术有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
CHEBOLE BEIJING:
    	
 
    
	
 
    	
 
    
	
CHEBOLE (BEIJING) INFORMATION TECHNOLOGY   CO., LTD.
    
	
(车伯乐(北京)信息科技有限公司)
    	
 
    
	
[Company   seal is affixed]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ZENG ZHEN
    	
 
    
	
Name:
    	
ZENG ZHEN (曾真)
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
FOUNDER:
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/DAI KUN
    	
 
    
	
Name:
    	
DAI KUN (戴琨)
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
FOUNDER   HOLDING COMPANY:
    	
 
    
	
 
    	
 
    
	
XIN GAO GROUP LIMITED
    	
 
    
	
(信高集團有限公司)
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/DAI KUN
    	
 
    
	
Name:
    	
DAI KUN (戴琨)
    	
 
    
	
Title:
    	
Director
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

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

 

	
INVESTOR:
    	
 
    
	
 
    	
 
    
	
HUANGPU INVESTMENT   HOLDING LIMITED
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/Liu Juan
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

SIGNATURE PAGE TO SERIES G+ SHARE SUBSCRIPTION AGREEMENT

 

 

LIST OF EXHIBITS

 

	
Exhibit A
    	
 
    	
Parties
    
	
 
    	
 
    	
 
    
	
Exhibit B
    	
 
    	
Company Information
    
	
 
    	
 
    	
 
    
	
Exhibit C
    	
 
    	
Key Employees
    
	
 
    	
 
    	
 
    
	
Exhibit D
    	
 
    	
Representations and   Warranties of Covenantors / Representations and Warranties of Founder
    
	
 
    	
 
    	
 
    
	
Exhibit E
    	
 
    	
Representation and   Warranties of Investor
    
	
 
    	
 
    	
 
    
	
Exhibit F
    	
 
    	
Covenants of   Covenantors / Covenants of Investor
    
	
 
    	
 
    	
 
    
	
Exhibit G
    	
 
    	
Conditions to The   Investor’ Obligations at Closing
    
	
 
    	
 
    	
 
    
	
Exhibit H
    	
 
    	
Conditions to Company’s   Obligations at Closing
    
	
 
    	
 
    	
 
    
	
Exhibit I
    	
 
    	
Disclosure Letter
    

 

 

EXHIBIT A

 

PARTIES

 

Part I                                                               Founder and Founder Holding Company

 

(a)                                 Founder

 

1.                                      Dai Kun (戴琨), a Chinese citizen (PRC identity card number ******************).

 

(b)                                 Founder Holding Company

 

1.                                      Xin Gao Group Limited (信高集團有限公司), a limited liability company duly established and validly existing under the laws of the British Virgin Islands, which, as of the date hereof, is wholly owned by Dai Kun (戴琨) (on a fully diluted basis), and the board of directors of which consists of Dai Kun (戴琨) only.

 

Part II                                                          Investor

 

1.                                     Huangpu Investment Holding Limited, a limited liability company duly incorporated and validly existing under the laws of British Virgin Islands.

 

 

Part III Series G+ Preferred Shares, Series G+ Subscription Price

 

	
Investor
    	
 
    	
Series G+
   Preferred Shares
    	
 
    	
Series G+
   Subscription Price
   (US$)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Huangpu   Investment Holding Limited
    	
 
    	
135,844
    	
 
    	
5,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TOTAL
    	
 
    	
135,844
    	
 
    	
5,000,000
    	
 
    

 

 

Part V Notice Address

 

For the purpose of the notice provisions contained in this Agreement, the following are the initial addresses of each Party:

 

If to any of the Group Companies:

 

	
Address:
    	
 
    	
Floor 37th, Building B, Tower 3, Wangjing Soho   Center, No. 10, Wangjing Street, Chaoyang District, Beijing (100102)
    
	
Fax Number:
    	
 
    	
+8610-5631-2701
    
	
Email:
    	
 
    	
daikun@xin.com
    
	
Attention:
    	
 
    	
Dai Kun
    
	
 
    	
 
    	
 
    
	
If to Founder or   Founder Holding Company:
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
Floor 37th, Building B, Tower 3, Wangjing Soho   Center, No. 10, Wangjing Street, Chaoyang District, Beijing (100102)
    
	
Fax Number:
    	
 
    	
+8610-5631-2701
    
	
Email:
    	
 
    	
daikun@xin.com
    
	
Attention:
    	
 
    	
Dai Kun
    
	
 
    	
 
    	
 
    
	
If to the   Investor:
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
14F, China Huatong Tower, No.60 Gloucester Road, Wan   Chai, Hong Kong
    
	
Fax Number:
    	
 
    	
+852-3198-5785
    
	
Email:
    	
 
    	
yushouyi@chamc.com.cn
    
	
Attention:
    	
 
    	
Mark Yu
    
	
Phone:
    	
 
    	
+852-3198-5551
    

 

 

EXHIBIT B

 

COMPANY INFORMATION

 

Part I     Capitalization Table of the Company as of the date hereof

 

Authorized capital: US$200,000 divided into: (i) 131,283,923 Ordinary Shares, (ii) 5,000,000 Series A Shares, (iii) 491,089 Series A-1 Shares, (iv) 7,060,263 Series B Preferred Shares, (v) 8,670,877 Series C-1 Preferred Shares, (vi) 1,055,891 Series C-2 Preferred Shares, (vii) 15,935,515 Series D Preferred Shares, (viii) 8,947,749 Series E Preferred Shares, (ix) 8,516,220 Series F Preferred Shares, and (x) 13,038,473 Series G Preferred Shares.

 

	
Name of Shareholder
    	
 
    	
Class of
   Shares
    	
 
    	
Number of
   Shares
    	
 
    	
Percentage
   (on a fully
   diluted basis)
    	
 
    
	
Xin Gao Group Limited
    	
 
    	
Ordinary
    	
 
    	
4,931,886
    	
 
    	
6.1535
    	
%
    
	
ESOP
    	
 
    	
Ordinary
    	
 
    	
6,500,000
    	
 
    	
8.1100
    	
%
    
	
Ordinary Total
    	
 
    	
 
    	
 
    	
11,431,886
    	
 
    	
14.2635
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
LC Fund V, L.P.
    	
 
    	
Series A
    	
 
    	
1,864,078
    	
 
    	
2.4954
    	
%
    
	
LC Parallel Fund V, L.P.
    	
 
    	
Series A
    	
 
    	
135,922
    	
 
    
	
KINGKEY NEW ERA AUTO INDUSTRY LIMITED (京基新興汽車產業有限公司)
    	
 
    	
Series A
    	
 
    	
2,000,000
    	
 
    	
2.4954
    	
%
    
	
Gao Li Group Limited
    	
 
    	
Series A
    	
 
    	
668,602
    	
 
    	
0.8342
    	
%
    
	
Xin Gao Group Limited
    	
 
    	
Series A
    	
 
    	
331,398
    	
 
    	
0.4135
    	
%
    
	
Haixia Uxin   International Limited Partnership
    	
 
    	
Series A-1
    	
 
    	
491,089
    	
 
    	
0.6127
    	
%
    
	
Series A Total
    	
 
    	
 
    	
 
    	
5,491,089
    	
 
    	
6.8512
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
LC Fund V, L.P.
    	
 
    	
Series B
    	
 
    	
2,632,176
    	
 
    	
3.5236
    	
%
    
	
LC Parallel Fund V, L.P.
    	
 
    	
Series B
    	
 
    	
191,929
    	
 
    
	
KINGKEY NEW ERA AUTO INDUSTRY LIMITED (京基新興汽車產業有限公司)
    	
 
    	
Series B
    	
 
    	
1,412,053
    	
 
    	
1.7618
    	
%
    
	
Gao Li Group Limited
    	
 
    	
Series B
    	
 
    	
1,059,039
    	
 
    	
1.3214
    	
%
    
	
Tencent Growthfund Limited
    	
 
    	
Series B
    	
 
    	
176,507
    	
 
    	
2.2023
    	
%
    
	
THL A7 Limited
    	
 
    	
Series B
    	
 
    	
1,588,559
    	
 
    
	
Series B Total
    	
 
    	
 
    	
 
    	
7,060,263
    	
 
    	
8.8090
    	
%
    
	
Redrock Holding Investments Limited
    	
 
    	
Series C-1
    	
 
    	
6,878,078
    	
 
    	
8.5817
    	
%
    
	
KINGKEY NEW ERA AUTO INDUSTRY
    	
 
    	
Series C-1
    	
 
    	
614,755
    	
 
    	
0.7670
    	
%
    

 

 

	
Name of Shareholder
    	
 
    	
Class of
   Shares
    	
 
    	
Number of
   Shares
    	
 
    	
Percentage
   (on a fully
   diluted basis)
    	
 
    
	
LIMITED (京基新興汽車產業有限公司)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
DCM Hybrid RMB Fund, L.P.
    	
 
    	
Series C-1
    	
 
    	
335,547
    	
 
    	
0.4187
    	
%
    
	
Xin Gao Group Limited
    	
 
    	
Series C-1
    	
 
    	
842,497
    	
 
    	
1.0512
    	
%
    
	
LC Fund V, L.P.
    	
 
    	
Series C-2
    	
 
    	
980,359
    	
 
    	
1.3174
    	
%
    
	
LC Parallel Fund V, L.P.
    	
 
    	
Series C-2
    	
 
    	
75,532
    	
 
    
	
Series C Total
    	
 
    	
 
    	
 
    	
9,726,768
    	
 
    	
12.1360
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tiger Global Eight Holdings
    	
 
    	
Series D
    	
 
    	
5,794,733
    	
 
    	
7.2300
    	
%
    
	
Hillhouse UX Holdings Limited
    	
 
    	
Series D
    	
 
    	
5,794,733
    	
 
    	
7.2300
    	
%
    
	
Redrock Holding Investments Limited
    	
 
    	
Series D
    	
 
    	
2,897,366
    	
 
    	
3.6150
    	
%
    
	
Coatue Hybrid Asia II LLC
    	
 
    	
Series D
    	
 
    	
1,448,683
    	
 
    	
1.8075
    	
%
    
	
Series D Total
    	
 
    	
 
    	
 
    	
15,935,515
    	
 
    	
19.8826
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Baidu (Hong Kong) Limited
    	
 
    	
Series E
    	
 
    	
5,965,166
    	
 
    	
7.4427
    	
%
    
	
Turbo Wise Investment Limited
    	
 
    	
Series E
    	
 
    	
1,789,550
    	
 
    	
2.2328
    	
%
    
	
Hillhouse UX Holdings Limited
    	
 
    	
Series E
    	
 
    	
477,213
    	
 
    	
0.5954
    	
%
    
	
Internet Fund II Pte. Ltd.
    	
 
    	
Series E
    	
 
    	
477,213
    	
 
    	
0.5954
    	
%
    
	
Coatue Hybrid Asia II LLC
    	
 
    	
Series E
    	
 
    	
238,607
    	
 
    	
0.2977
    	
%
    
	
Series E Total
    	
 
    	
 
    	
 
    	
8,947,749
    	
 
    	
11.1640
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
JenCap UX
    	
 
    	
Series F
    	
 
    	
2,421,674
    	
 
    	
3.0215
    	
%
    
	
Baidu (Hong   Kong) Limited
    	
 
    	
Series F
    	
 
    	
2,018,062
    	
 
    	
2.5179
    	
%
    
	
Hillhouse UX   Holdings Limited
    	
 
    	
Series F
    	
 
    	
403,612
    	
 
    	
0.5036
    	
%
    
	
Redrock Holding   Investments Limited
    	
 
    	
Series F
    	
 
    	
605,418
    	
 
    	
0.7554
    	
%
    
	
Internet Fund II   Pte. Ltd.
    	
 
    	
Series F
    	
 
    	
322,890
    	
 
    	
0.4029
    	
%
    
	
Turbo Wise   Investment Limited
    	
 
    	
Series F
    	
 
    	
322,890
    	
 
    	
0.4029
    	
%
    
	
Shanghai   Huasheng Lingfei Equity Investment (Limited Partnership)
    	
 
    	
Series F
    	
 
    	
1,210,837
    	
 
    	
1.5108
    	
%
    
	
Snow Lake China   Master Fund, Ltd.
    	
 
    	
Series F
    	
 
    	
1,210,837
    	
 
    	
1.5108
    	
%
    
	
Series F Total
    	
 
    	
 
    	
 
    	
8,516,220
    	
 
    	
10.6256
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TPG Growth III SF   Pte. Ltd,
    	
 
    	
Series G
    	
 
    	
2,013,285
    	
 
    	
2.5120
    	
%
    

 

 

	
Name of Shareholder
    	
 
    	
Class of
   Shares
    	
 
    	
Number of
   Shares
    	
 
    	
Percentage
   (on a fully
   diluted basis)
    	
 
    
	
Zhuhai Hengqin   Wuzhouhuaxin Equity Investment Fund (Limited Partnership) (珠海横琴五洲华新股权投资基金(有限合伙))
    	
 
    	
Series G
    	
 
    	
1,529,729
    	
 
    	
1.9086
    	
%
    
	
Zhuhai Hengqin   Boruihuaxin Investment Partnership (Limited Partnership) (珠海横琴博睿华新投资合伙企业(有限合伙))
    	
 
    	
Series G
    	
 
    	
43,475
    	
 
    	
0.0542
    	
%
    
	
Zhuhai Guangkong   Zhongying Industrial Investment Fund (Limited Partnership) (珠海光控众盈产业投资基金合伙企业(有限合伙))
    	
 
    	
Series G
    	
 
    	
1,449,178
    	
 
    	
1.8081
    	
%
    
	
Redrock Holding   Investments Limited
    	
 
    	
Series G
    	
 
    	
838,869
    	
 
    	
1.0467
    	
%
    
	
Internet Fund II   Pte. Ltd.
    	
 
    	
Series G
    	
 
    	
503,321
    	
 
    	
0.6280
    	
%
    
	
JenCap UX
    	
 
    	
Series G
    	
 
    	
335,547
    	
 
    	
0.4187
    	
%
    
	
Turbo Wise   Investment Limited
    	
 
    	
Series G
    	
 
    	
268,438
    	
 
    	
0.3349
    	
%
    
	
Ray Galaxy   Limited
    	
 
    	
Series G
    	
 
    	
134,219
    	
 
    	
0.1675
    	
%
    
	
PINE CASTLE HOLDINGS LIMITED
    	
 
    	
Series G
    	
 
    	
1,593,850
    	
 
    	
1.9886
    	
%
    
	
ClearVue UXin Holdings, Ltd.
    	
 
    	
Series G
    	
 
    	
838,869
    	
 
    	
1.0467
    	
%
    
	
Xinyu Youteng Investment Partnership (Limited Partnership) (新余优腾投资合伙企业(有限合伙))
    	
 
    	
Series G
    	
 
    	
335,547
    	
 
    	
0.4187
    	
%
    
	
KINGKEY NEW ERA AUTO INDUSTRY LIMITED (京基新興汽車產業有限公司)
    	
 
    	
Series G
    	
 
    	
1,677,737
    	
 
    	
2.0933
    	
%
    
	
BOCOM   International Supreme Investment Limited
    	
 
    	
Series G
    	
 
    	
1,476,409
    	
 
    	
1.8421
    	
%
    
	
Series G Total
    	
 
    	
 
    	
 
    	
13,038,473
    	
 
    	
16.2680
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Preferred Total
    	
 
    	
 
    	
 
    	
68,716,077
    	
 
    	
85.7365
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
80,147,963
    	
 
    	
100.0000
    	
%
    

 

 

Part III     Corporate Information (before Closing)

 

 

 

For the purpose of the Exhibit B Part III of this Agreement only, the capitalized terms shall have the following meanings:

 

	
Capitalized Term
    	
 
    	
Shareholding Entity in the Company
    
	
Founder
    	
 
    	
Xin Gao Group Limited
    
	
ESOP
    	
 
    	
ESOP
    
	
WP
    	
 
    	
Redrock Holding   Investments Limited
    
	
Baidu
    	
 
    	
Baidu (Hong Kong)   Limited
    
	
Tiger
    	
 
    	
Tiger Global Eight   Holdings
   Internet Fund II Pte. Ltd.
    
	
Hillhouse
    	
 
    	
Hillhouse UX Holdings   Limited
    
	
LC
    	
 
    	
LC Fund V, L.P. LC
   Parallel Fund V, L.P.
    
	
KINGKEY
    	
 
    	
KINGKEY NEW ERA AUTO   INDUSTRY LIMITED   (京基新興產業汽車有限公司)
    
	
JC
    	
 
    	
JenCap UX
    
	
KKR
    	
 
    	
Turbo Wise Investment   Limited
    
	
TPG
    	
 
    	
TPG Growth III SF Pte.   Ltd.
    
	
Tencent
    	
 
    	
Tencent Growthfund   Limited THL A7 Limited
    
	
GL
    	
 
    	
Gao Li Group Limited
    
	
Coatue
    	
 
    	
Coatue Hybrid Asia II   LLC
    
	
New China
    	
 
    	
PINE CASTLE HOLDINGS   LIMITED
    

 

 

	
Huaxin
    	
 
    	
Zhuhai Hengqin   Wuzhouhuaxin Equity Investment Fund (Limited Partnership)   (珠海横琴五洲华新股权投资基金(有限合伙))

Zhuhai Hengqin   Boruihuaxin Investment Partnership (Limited Partnership)   (珠海横琴博睿华新投资合伙企业(有限合伙))
    
	
Everbright
    	
 
    	
Zhuhai Guangkong   Zhongying Industrial Investment Fund (Limited Partnership)   (珠海光控众盈产业投资基金合伙企业(有限合伙))
    
	
BOCOM
    	
 
    	
BOCOM International   Supreme Investment Limited
    
	
SL
    	
 
    	
Snow Lake China Master   Fund, Ltd.
    
	
Huasheng
    	
 
    	
Shanghai Huasheng   Lingfei Equity Investment (Limited Partnership)   (上海华晟领飞股权投资合伙企业(有限合伙))   

Ray Galaxy Limited
    
	
ClearVue
    	
 
    	
ClearVue UXinD   Holdings, Ltd.
    
	
Haixia
    	
 
    	
Haixia Uxin   International Limited Partnership
    
	
DCM
    	
 
    	
DCM Hybrid RMB Fund,   L.P.
    
	
HeYu
    	
 
    	
Xinyu Youteng   Investment Partnership (Limited Partnership)   (新余优腾投资合伙企业(有限合伙))
    

 

 

EXHIBIT C

 

KEY EMPLOYEES

 

	
No.
    	
 
    	
Name
    	
 
    	
Department
    	
 
    	
Title
    
	
1.
    	
 
    	
Dai Kun   (戴琨)
    	
 
    	
CEO Office   (CEO办公室)
    	
 
    	
CEO
    
	
2.
    	
 
    	
Zeng Zhen   (曾真)
    	
 
    	
Financial &   Legal Center (财法中心)
    	
 
    	
CFO
    
	
3.
    	
 
    	
William Peng   (彭惟廉)
    	
 
    	
Uxin Used Car   (优信二手车)
    	
 
    	
Executive Director
    
	
4.
    	
 
    	
Jing Wenbing   (井文兵)
    	
 
    	
Uxin Auction   (优信拍)
    	
 
    	
Executive Director
    

 

 

EXHIBIT D

 

Part I

 

REPRESENTATIONS AND WARRANTIES OF COVENANTORS

 

1.                                      Organization, Standing and Qualification. Each of the Group Companies and the Founder Holding Company is duly organized, validly existing and in good standing (or equivalent status in the relevant jurisdiction) under, and by virtue of, the laws of the place of its incorporation or establishment (in respect of each of the WFOE, Kaifeng Financing Lease, Boyu Financing Lease, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, the PRC Domestic Company, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing, Youxin Ruida Assets and the PRC Subsidiaries, its registered capital has been contributed in accordance with its articles of association) and has all requisite power and authority to own its properties and assets and to carry on its business as now conducted and as proposed to be conducted, and to perform each of its obligations hereunder and under any Transaction Agreement or Restructuring Document to which it is a party.  Each of the Group Companies and the Founder Holding Company is qualified or licensed to do business and is in good standing (or equivalent status in the relevant jurisdiction) in each relevant jurisdiction.  Each of the Group Companies and the Founder Holding Company is not in receivership or liquidation; no steps have been taken to enter into liquidation; and no petition has been presented for winding up any Group Company or the Founder Holding Company; and there are no grounds on which a petition or application might be based for the winding up or appointment of a receiver of any Group Company or the Founder Holding Company.

 

2.                                      Capitalization.

 

(a)                                 Immediately prior to the Closing, the authorized share capital of the Company consists of the following:

 

(i)                                     Ordinary Shares.  A number of authorized Ordinary Shares that equals to the difference between 131,283,923 and authorized Series G+ Preferred Shares as set forth in Section 2(a)(ix), of which 4,931,886 Ordinary Shares are issued and outstanding immediately prior to the Closing.

 

(ii)                                  Series A Shares. A total of 5,000,000 authorized Series A Shares, all of which are issued and outstanding immediately prior to the Closing.

 

(iii)                               Series A-1 Shares. A total of 491,089 authorized Series A-1 Shares, all of which are issued and outstanding immediately prior to the Closing.

 

(iv)                              Series B Preferred Shares. A total of 7,060,263 authorized Series B Preferred Shares, all of which are issued and outstanding immediately prior to the Closing.

 

 

(v)                                 Series C Preferred Shares.  A total of 8,670,877 authorized Series C-1 Preferred Shares and 1,055,891 authorized Series C-2 Preferred Shares, all of which are issued and outstanding immediately prior to the Closing.

 

(vi)                              Series D Preferred Shares.  A total of 15,935,515 authorized Series D Preferred Shares, all of which are issued and outstanding immediately prior to the Closing.

 

(vii)                           Series E Preferred Shares.  A total of 8,947,749 authorized Series E Preferred Shares, all of which are issued and outstanding immediately prior to the Closing.

 

(viii)                        Series F Preferred Shares.  A total of 8,516,220 authorized Series F Preferred Shares, all of which are issued and outstanding immediately prior to the Closing.

 

(ix)                              Series G Preferred Shares.  A total of 13,038,473 authorized Series G Preferred Shares, all of which are issued and outstanding immediately prior to the Closing.

 

(x)                                 Series G+ Preferred Shares.  A number of authorized Series G+ Preferred Shares that are sufficient for issue under the Transaction Agreements, none of which is issued and outstanding immediately prior to the Closing.

 

(xi)                              Treasury Shares.  The Company holds no treasury shares.

 

(xii)                           Options, Warrants, Reserved Shares. The Company has reserved sufficient Ordinary Shares for issuance upon the conversion of the Series A Preferred Shares, Series B Preferred Shares, Series C Preferred Shares, Series D Preferred Shares, Series E Preferred Shares, Series F Preferred Shares, Series G Preferred Shares, and Series G+ Preferred Shares.  Except for (A) the conversion privileges of the Series A Preferred Shares, Series B Preferred Shares, Series C Preferred Shares, Series D Preferred Shares, Series E Preferred Shares, Series F Preferred Shares, Series G Preferred Shares, and Series G+ Preferred Shares, (B) the preemptive rights provided in the Shareholders Agreement, (C) as at immediately after the Closing, 6,500,000 Ordinary Shares (and options and warrants therefor) reserved for issuance to officers, directors, employees of, and consultants to, any Group Company under the Company’s employee equity incentive plans or purchase plans adopted or to be adopted by the Company in form and substance satisfactory to the Investor (the “ESOP”) (of such 6,500,000 reserved Ordinary Shares, options to purchase 3,948,426 Ordinary Shares under the ESOP have been granted as of the date hereof), and (D) the transactions contemplated by the Transaction Agreements, there are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of the Company.  Except as set forth in the preceding sentence, the 

 

 

Shareholders Agreement and the Restated Articles, no shares (including the Series G+ Preferred Shares and the Conversion Shares) of the Company’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by the Company, are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of the Company or any other Person).

 

(b)                                 The capital structures (including its authorized and issued share capital, and the holders thereof) of the Company as set forth in Part I of EXHIBIT B are complete, true and accurate.

 

(c)                                  UcarEase BVI.  Immediately prior to the Closing, UcarEase BVI is authorized to issue 50,000 ordinary shares, par value US$1.00, of which 2 shares are issued and outstanding and the Company owns one hundred percent (100%) of the issued and outstanding shares of UcarEase BVI (on a fully diluted basis) which are free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of the UcarEase BVI.  There are no shares of the UcarEase BVI’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by UcarEase BVI, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of UcarEase BVI or any other Person).

 

(d)                                 Uxin Used Car Cayman.  Immediately prior to the Closing, the authorized share capital of Uxin Used Car Cayman is US$50,000, consisting of 50,000 ordinary shares, par value US$1.00, of which 1 is issued and outstanding and the Company owns one hundred percent (100%) of the issued and outstanding share capital of the Uxin Used Car Cayman (on a fully diluted basis) which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of the Uxin Used Car Cayman. There are no shares of the Uxin Used Car Cayman’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by Uxin Used Car Cayman, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of Uxin Used Car Cayman or any other Person).

 

(e)                                  Perfect Harmony. Immediately prior to the Closing, Perfect Harmony is authorized to issue 50,000 ordinary shares, par value US$1.00, of which 1 is issued and outstanding and the Company owns one hundred percent (100%) of the issued and outstanding shares of Perfect Harmony (on a fully diluted basis) which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of Perfect Harmony.  There are no shares of Perfect Harmony’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by Perfect Harmony, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of Perfect Harmony or any other Person).

 

 

(f)                                   Uxin HK.  Immediately prior to the Closing, the authorized share capital of Uxin HK is HK$10,000, consisting of 10,000 ordinary shares, par value HK$1.00, of which 100 is issued and outstanding and the Company owns one hundred percent (100%) of the issued and outstanding share capital of Uxin HK (on a fully diluted basis) which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of Uxin HK.  There are no shares of Uxin HK’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by Uxin HK, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of Uxin HK or any other Person).

 

(g)                                  GloryFin HK.  Immediately prior to the Closing, the authorized share capital of GloryFin is HK$10,000, consisting of 10,000 ordinary shares, par value HK$1.00, of which 10,000 is issued and outstanding and UcarEase BVI owns one hundred percent (100%) of the issued and outstanding share capital of the GloryFin HK (on a fully diluted basis) which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of the GloryFin HK.  There are no shares of the GloryFin HK’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by GloryFin HK, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of GloryFin HK or any other Person).

 

(h)                                 UcarShow HK.  Immediately prior to the Closing, the authorized share capital of UcarShow HK is HK$10,000, consisting of 10,000 ordinary shares, par value HK$1.00, of which 10,000 is issued and outstanding and Uxin Used Car Cayman owns one hundred percent (100%) of the issued and outstanding share capital of UcarShow HK (on a fully diluted basis) which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of UcarShow HK.  There are no shares of UcarShow HK’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by UcarShow HK, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of UcarShow HK or any other Person).

 

(i)                                     Fairlubo.  Immediately prior to the Closing, the authorized share capital of Fairlubo is US$100,000, consisting of (a) 690,833,334 Ordinary Shares, par value US$0.0001; (b) 30,000,000 Series A Preferred Shares, par value US$0.0001; (c) 133,333,333 Series A1 Preferred Shares, par value US$ 0.0001; and (d) 145,833,333 Series B Preferred Shares, par value US$ 0.0001. Perfect Harmony owns fifty two point six one five four percent (52.6154%) of the issued and outstanding share capital of Farilubo (on a fully diluted basis) which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other 

 

 

rights or Contracts with respect to the issuance or transfer of any shares of Fairlubo.  There are no shares of Fairlubo’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by Fairlubo, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (not including such rights designated to Perfect Harmony).

 

(j)                                    Fairlubo HK.  Immediately prior to the Closing, the authorized share capital of Fairlubo HK is HK$10,000, consisting of 10,000 ordinary shares par value HK$1.00, of which 10,000 is issued and outstanding and Fairlubo owns one hundred percent (100%) of the issued and outstanding share capital of Fairlubo HK (on a fully diluted basis) which is free and clear of any Encumbrance. There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of Fairlubo HK.  There are no shares of Fairlubo HK’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by Fairlubo HK, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (not including such rights designated to Fairlubo).

 

(k)                                 UcarBuy BVI.  Immediately prior to the Closing, UcarBuy BVI is authorized to issue 50,000 ordinary shares, par value US$1.00, of which 1 is issued and outstanding and the Company owns one hundred percent (100%) of the issued and outstanding shares of UcarBuy BVI (on a fully diluted basis) which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of UcarBuy BVI.  There are no shares of UcarBuy BVI’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by UcarBuy BVI, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of UcarBuy BVI or any other Person).

 

(l)                                     UcarBuy HK.  Immediately prior to the Closing, the authorized share capital of UcarBuy HK is HK$10,000 consisting of 10,000 ordinary shares par value HK$1.00, of which 10,000 is issued and outstanding and UcarBuy BVI owns one hundred percent (100%) of the issued and outstanding share capital of UcarBuy HK (on a fully diluted basis) which is free and clear of any Encumbrance. There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of UcarBuy HK.  There are no shares of UcarBuy HK’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by UcarBuy HK, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of UcarBuy HK or any other Person).

 

(m)                             Xin Limited.  Immediately prior to the Closing, Xin Limited is authorized to issue 500,000,000 ordinary shares, par value US$0.0001, of which 1 is issued and outstanding and the Company owns one hundred percent (100%) of the issued and outstanding shares of Xin Limited (on a fully diluted basis) which is free and clear of any Encumbrance.  There are no subscriptions, options, 

 

 

warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of Xin Limited.  There are no shares of Xin Limited’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by Xin Limited, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of Xin Limited or any other Person).

 

(n)                                 Xin HK.  Immediately prior to the Closing, the authorized share capital of Xin HK is HK$1.00 consisting of 1 ordinary shares par value HK$1.00, of which 1 is issued and outstanding and Xin Limited owns one hundred percent (100%) of the issued and outstanding share capital of Xin HK (on a fully diluted basis) which is free and clear of any Encumbrance. There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance or transfer of any shares of Xin HK.  There are no shares of Xin HK’s outstanding share capital, or shares issuable upon exercise or exchange of any outstanding options or other shares issuable by Xin HK, that are subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of Xin HK or any other Person).

 

(o)                                 Lubao WFOE. Immediately prior to the Closing, the registered capital of Lubao WFOE is US$25,000,000, RMB108,234,800 of which has been contributed in accordance with its articles of association.  Fairlubo HK owns one hundred percent (100%) of the registered capital of Lubao WFOE (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Lubao WFOE.

 

(p)                                 Fengshun Lubao.  Immediately prior to the Closing, the registered capital of Fengshun Lubao is RMB20,000,000, all of which has been contributed in accordance with its articles of association. Immediately prior to the Closing, Youxin Yishouche, Xing Zhanming and Fengshang collectively hold one hundred percent (100%) of the registered capital of Fengshun Lubao (on a fully diluted basis), which is free and clear of any Encumbrance other than the Encumbrance created under the relevant Restructuring Documents.  Except for the transactions contemplated by the relevant Restructuring Documents, there are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Fengshun Lubao.

 

(q)                                 Shanghai Lubao.  Immediately prior to the Closing, the registered capital of Shanghai Lubao is RMB2,000,000, all of which has been contributed in accordance with its articles of association. Immediately prior to the Closing, Fengshun Lubao holds one hundred percent (100%) of the registered capital of Shanghai Lubao (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance 

 

 

of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Shanghai Lubao.

 

(r)                                    Tianjin Lubao.  Immediately prior to the Closing, the registered capital of Tianjin Lubao is RMB2,000,000, all of which has been contributed in accordance with its articles of association. Immediately prior to the Closing, Fengshun Lubao holds one hundred percent (100%) of the registered capital of Tianjin Lubao (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Tianjin Lubao.

 

(s)                                   Kaifeng Financing Lease. Immediately prior to the Closing, the registered capital of Kaifeng Financing Lease is US$58,000,000, US$46,758,975.7 of which has been contributed in accordance with its articles of association.  GloryFin HK owns one hundred percent (100%) of the registered capital of Kaifeng Financing Lease (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Kaifeng Financing Lease.

 

(t)                                    Boyu Financing Lease. Immediately prior to the Closing, the registered capital of Boyu Financing Lease is US$30,000,000, US$0 of which has been contributed in accordance with its articles of association.  GloryFin HK owns one hundred percent (100%) of the registered capital of Boyu Financing Lease (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Boyu Financing Lease.

 

(u)                                 WFOE. Immediately prior to the Closing, the registered capital of the WFOE is US$233,798,846, all of which has been contributed in accordance with its articles of association. Uxin HK owns one hundred percent (100%) of the registered capital of the WFOE (on a fully diluted basis), which is free and clear of any Encumbrance. Except for the transactions contemplated by the Transaction Agreements, there are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of the WFOE.

 

(v)                                 PRC Domestic Company.  Immediately prior to the Closing, the registered capital of the PRC Domestic Company is RMB104,008,008, all of which has been contributed in accordance with its articles of association.  The contributed registered capital of the PRC Domestic Company has been duly verified by an accountant registered in the PRC, and the verification report has been accepted by the relevant PRC Governmental Authority. Immediately 

 

 

prior to the Closing, the Founder and Min Si Lian Hua collectively hold one hundred percent (100%) of the registered capital of the PRC Domestic Company (on a fully diluted basis), which is free and clear of any Encumbrance other than the Encumbrance created under the relevant Restructuring Documents.  Except for the transactions contemplated by the relevant Restructuring Documents, there are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of the PRC Domestic Company.

 

(w)                               PRC Subsidiaries.  Immediately prior to the Closing, the registered capital of Youtu Beijing is RMB200,000, all of which has been contributed in accordance with its articles of association.  Immediately prior to the Closing, the registered capital of Youxinpai Auction is RMB1,000,000, all of which has been contributed in accordance with its articles of association.  Immediately prior to the Closing, the registered capital of Youxinpai Sichuan Auction is RMB2,000,000, all of which has been contributed in accordance with its articles of association. Immediately prior to the Closing, the registered capital of Youxinpai Second Hand Car is RMB500,000, all of which has been contributed in accordance with its articles of association.  Immediately prior to the Closing, the registered capital of Youxin Business is RMB1,500,000, all of which has been contributed in accordance with its articles of association.  Immediately prior to the Closing, the registered capital of Youxin Pengcheng is RMB2,000,000. Immediately prior to the Closing, the registered capital of Youxin Yilian is RMB1,000,000.  Immediately prior to the Closing, the registered capital of Youxin Chengdu is RMB2,000,000.  Except for Youxin Ruida Assets, Youxin Ruitong Service, Youxin Pengcheng, Youxin Yilian and Youxin Chengdu, the contributed registered capital of each PRC Subsidiary has been duly verified by an accountant registered in the PRC, and the verification report has been accepted by the relevant PRC Governmental Authority.  Immediately prior to the Closing, the PRC Domestic Company owns one hundred percent (100%) of the registered capital of each PRC Subsidiary other than Youxinpai Sichuan Auction, Youxin Yilian and Youxin Chengdu, Youxinpai Auction owns one hundred percent (100%) of the registered capital of Youxinpai Sichuan Auction, the PRC Domestic Company owns 73% of the registered capital of Youxin Yilian, and Youxin Yilian owns one hundred percent (100%) of the registered capital of Youxin Chengdu, in each case on a fully diluted basis and free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of any PRC Subsidiary.

 

(x)                                 Youxin Pengda. Immediately prior to the Closing, the registered capital of Youxin Pengda is RMB100,000.  WFOE owns one hundred percent (100%) of the registered capital of Youxin Pengda (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities 

 

 

convertible into or exchangeable for any equity interest or registered capital, of Youxin Pengda.

 

(y)                                 Youhan Shanghai. Immediately prior to the Closing, the registered capital of Youhan Shanghai is RMB1,250,000.  WFOE owns one hundred percent (100%) of the registered capital of Youhan Shanghai (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youhan Shanghai.

 

(z)                                  Youxin Auction. Immediately prior to the Closing, the registered capital of Youxin Auction is RMB312,500,000.  WFOE owns one hundred percent (100%) of the registered capital of Youxin Auction (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youxin Auction.

 

(aa)                          Youxin Automobile. Immediately prior to the Closing, the registered capital of Youxin Automobile is RMB53,125,000.  WFOE owns one hundred percent (100%) of the registered capital of Youxin Automobile (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youxin Automobile.

 

(bb)                          Youxin Yuecheng. Immediately prior to the Closing, the registered capital of Youxin Yuecheng is RMB5,000,000.  WFOE owns one hundred percent (100%) of the registered capital of Youxin Yuecheng (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youxin Yuecheng.

 

(cc)                            Yougu Shanghai. Immediately prior to the Closing, the registered capital of Yougu Shanghai is US$200,000,000, US$130,000,000 of which has been contributed in accordance with its articles of association.  UcarShow HK owns one hundred percent (100%) of the registered capital of Yougu Shanghai (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Yougu Shanghai.

 

(dd)                          Youxuan Beijing. Immediately prior to the Closing, the registered capital of Youxuan Beijing is RMB10,000,000.  Yougu Shanghai owns one hundred

 

 

percent (100%) of the registered capital of Youxuan Beijing (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youxuan Beijing.

 

(ee)                            Youzhen Beijing. Immediately prior to the Closing, the registered capital of Youzhen Beijing is RMB2,000,000.  Yougu Shanghai owns one hundred percent (100%) of the registered capital of Youzhen Beijing (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youzhen Beijing.

 

(ff)                              Youfang Beijing. Immediately prior to the Closing, the registered capital of Youfang Beijing is US$30,000,000.  UcarShow HK owns one hundred percent (100%) of the registered capital of Youfang Beijing (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youfang Beijing.

 

(gg)                            Youxin Shuxiang. Immediately prior to the Closing, the registered capital of Youxin Shuxiang is US$3,000,000.  UcarShow HK owns one hundred percent (100%) of the registered capital of Youxin Shuxiang (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youxin Shuxiang.

 

(hh)                          Youxin Shanghai. Immediately prior to the Closing, the registered capital of Youxin Shanghai is US$50,000,000.  UcarBuy HK owns one hundred percent (100%) of the registered capital of Youxin Shanghai (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youxin Shanghai.

 

(ii)                                  Youyuan Beijing. Immediately prior to the Closing, the registered capital of Youyuan Beijing is RMB 10,000,000.  Youxin Shanghai owns one hundred percent (100%) of the registered capital of Youyuan Beijing (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youyuan Beijing.

 

 

(jj)                                Xinhong Shanghai. Immediately prior to the Closing, the registered capital of Xinhong Shanghai is US$1,000,000.  Xin HK owns one hundred percent (100%) of the registered capital of Xinhong Shanghai (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Xinhong Shanghai.

 

(kk)                          Youxin Yishouche. Immediately prior to the Closing, the registered capital of Youxin Yishouche is RMB1,000,000.  Dai Kun owns ninty-nine point nine thousand nine hundred and ninty-nine percent (99.9999%) and Min Si Lian Hua owns zero point zero zero zero one percent (0.0001%) of the registered capital of Youxin Yishouche (on a fully diluted basis), which is free and clear of any Encumbrance other than the Encumbrance created under the relevant Resturcturing Documents. Except for the transactions contemplated by the relevant Resturucturing Documents, there are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youxin Yishouche.

 

(ll)                                  Youxin Ruida Assets.  Immediately prior to the Closing, the registered capital of Youxin Ruida Assets is RMB2,000,000.  Youxin Yishouche owns one hundred percent (100%) of the registered capital of Youxin Ruida Assets (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Youxin Ruida Assets.

 

(mm)                  Chebole Beijing. Immediately prior to the Closing, the registered capital of Chebole Beijing is RMB1,000,000.  Chebole Beijing was preivously named as Banmaxiu (Beijing) Information Technology Co., Ltd. (斑马秀(北京)信息科技有限公司). Youxin Yishouche owns one hundred percent (100%) of the registered capital of Chebole Beijing (on a fully diluted basis), which is free and clear of any Encumbrance.  There are no subscriptions, options, warrants, conversion privileges, pre-emptive or other rights or Contracts with respect to the issuance of any equity interest or registered capital, or any securities convertible into or exchangeable for any equity interest or registered capital, of Chebole Beijing.

 

(nn)                          No Encumbrance.  Except for the transactions contemplated under the Transaction Agreements and the Restructuring Documents, none of the Covenantors or any of their respective Affiliates is a party to any Contracts by which any of them is bound or obligated to acquire, dispose of, transfer or assign or create any Encumbrance on any interest, economic or otherwise, in any equity interests of any Group Company to any Person.  Except for the Transaction Agreements, the Restructuring Documents and the documents related to option issuance under ESOP of the Company (if any) disclosed in 

 

 

Section 2 of the Disclosure Letter, there are no other Contracts between or among the Founder, any Group Company and/or any other shareholder of any Group Company with respect to the ownership or voting or Control of any Group Company.

 

3.                                      Subsidiaries; Group Structure. Except as specified in this Section 3 of Part I of EXHIBIT D, and subject to Section 3 of the Disclosure Letter, no Covenantor has any Subsidiary or presently owns or Controls, directly or indirectly, any interest in any other Person (other than the Group Companies listed in Section 2).  The corporate structure of the Group Companies as set forth in Part III of EXHIBIT B is complete, true and accurate as of the date of this Agreement and as of the date of the Closing. Each Group Company as disclosed in Section 3 of the Disclosure Letter is the legal and beneficial owner of all the equity interest as specified in Section 3 of the Disclosure Letter where such Group Company holds minority equity interests in relevant company, in each case free and clear of any Encumbrance.

 

4.                                      Due Authorization.  All corporate action on the part of the Group Companies, the Founder Holding Company and, as applicable, their respective officers, directors and shareholders necessary for (a) the authorization, execution and delivery of, and the performance of all obligations of the Group Companies and the Founder Holding Company under this Agreement, the Disclosure Letter, the Shareholders Agreement, the Restated Articles and any other agreements the execution of which is contemplated hereunder or thereunder (together the “Transaction Agreements”) and the Restructuring Documents to which it is a party, and (b) the authorization, issuance, reservation for issuance and delivery of all of the Subscribed Shares being sold under this Agreement and of the Conversion Shares has been taken or will be taken prior to the Closing.  Each of the Covenantors has all requisite power and authority to execute and deliver this Agreement and other Transaction Agreements and the Restructuring Documents to which it is a party.  Upon execution, each of the Transaction Agreements and the Restructuring Documents to which a Covenantor is a party is a valid and binding obligation of such Covenantor, enforceable against it in accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, and (ii) the effect of rules of law governing the availability of equitable remedies.

 

5.                                      Valid Issuance.

 

(a)                                 The Series G+ Preferred Shares and the Conversion Shares, when issued, sold and delivered in accordance with the terms of this Agreement will be duly and validly authorised and issued, credited as fully paid, and non-assessable.

 

(b)                                 The issued and outstanding share capital of the Group Companies are duly and validly authorized and issued, fully paid and non-assessable (and in case of each of the WFOE, Kaifeng Financing Lease, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Youxin Pengda, the PRC Domestic Company, the PRC Subsidiaries, Youhan Shanghai, Youxin Auction, Youxin Automobile, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youxin Yishouche and Banmaxiu Beijing its registered capital has been contributed in accordance with its articles of association).  All outstanding shares, options, warrants and 

 

 

other securities of the Company or the WFOE (as the case may be) have been issued (and the issuance of Subscribed Shares or Conversion Shares shall be) in full compliance with the requirements of all Applicable Laws, including, to the extent applicable, the registration and prospectus delivery requirements of the United States Securities Act of 1933, as amended (the “Securities Act”), or in compliance with applicable exemptions therefrom, and all other provisions of applicable securities laws and regulations, including, without limitation, anti-fraud provisions, and the Constitutional Documents of the Company or the WFOE (as the case may be)at the time of such issuance.

 

(c)                                  Neither the Company, nor any of its affiliates (as defined in Rule 501(b) of Regulation D promulgated under the Securities Act (“Regulation D”)), nor any Person acting on its or their behalf (i) has made or will make offers or sales of any security, or has solicited or will solicit offers to buy, or otherwise has negotiated or will negotiate in respect of, any security, under circumstances that would require the registration of the Subscribed Shares under the Securities Act; or (ii) has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with any offer or sale of Subscribed Shares in the United States.

 

(d)                                 Neither the Company, nor any of its affiliates (as defined in Rule 405 under the Securities Act) nor any Person acting on its or their behalf has engaged, or will engage, in any “directed selling efforts” (as defined in Regulation S under the Securities Act) with respect to the Subscribed Shares.

 

(e)                                  The Company is a “foreign issuer” (as defined in Regulation S under the Securities Act) that reasonably believes that there is no “substantial U.S. market interest” (as defined in Regulation S under the Securities Act) in the shares of the Company or any securities of the same class as the Subscribed Shares.

 

6.                                      Financial Statements.

 

(a)                                 Prior to the date of the Closing, the Group Companies have delivered to the Investor their unaudited consolidated financial statements and management accounts of the Company (including balance sheet, profit and loss statement, and cash flow statement) as of December 31, 2016 (the “Financial Statement Date”) (collectively, the “Financial Statements”).

 

(b)                                 The Financial Statements have been prepared in accordance with PRC GAAP.  Since the Financial Statement Date, none of the Group Companies has changed any of the accounting principles or practices used by it in the past.

 

(c)                                  The Financial Statements are accurate and complete and present fairly the financial position of each Group Company as of the respective dates thereof and the results of operations of each Group Company for the periods covered thereby.  In particular, the Financial Statements reflect all debts, liabilities, and obligations of any nature whether due or to become due (including, without limitation, absolute liabilities, accrued liabilities, and contingent liabilities) of the Group Companies as of the Financial Statement Date, and contain all 

 

 

necessary reserves, provisions and accruals in accordance with PRC GAAP.  The Financial Statements present an accurate picture of the net assets, financing and results of operations of the Group Companies taken as a whole in accordance with PRC GAAP as of the Financial Statement Date.

 

(d)                                 All transactions conducted by the Group Companies have been duly recorded on their books and in their accounting records to the extent required by PRC GAAP and other applicable local accounting provisions and regulations.  As of the Financial Statement Date, the Group Companies have not incurred, assumed or guaranteed any liabilities or debts of any nature (whether due, fixed, contingent or otherwise) that were not reflected or expressly provisioned against in the Financial Statements.

 

(e)                                  Except as set forth in the Financial Statements and in the Disclosure Letter, (i) none of the Group Companies has any liability or obligation, absolute or contingent (individually or in the aggregate), or any indebtedness for borrowed money that it has directly or indirectly created, incurred, assumed or guaranteed, (ii) no Group Company is a guarantor or indemnitor of any liability, obligation or indebtedness of any Person, (iii) none of the Founder, the Founder Holding Company nor any of their respective Affiliates is a guarantor or indemnitor of any liability, obligation or indebtedness of any Group Company, (iv) none of the Group Companies has made any loan or advance to any Person (other than trade receivables in the ordinary course of business) and (v) none of the Covenantors has pledged or created any Encumbrance over any of its interest in the securities of any Group Company other than the equity pledge created under the Restructuring Documents.

 

(f)                                   All of the accounts receivable owing to the Group Companies, including without limitation all accounts receivable set forth in the Financial Statements, constitute valid and enforceable claims and are good and collectible in the ordinary course of business, net of any reserves shown on the Financial Statements (which reserves are adequate and were calculated on a basis consistent with PRC GAAP), and no further goods or services are required to be provided in order to complete the sales and to entitle the Group Companies to collect in full.  There are no contingents or asserted claims, refusals to pay, or other rights of set-off with respect to any accounts receivable of the Group Companies.

 

7.                                      Title to Properties and Assets. Each Group Company has good and marketable title to its properties and assets, and none of its properties and assets is subject to any Encumbrance.  There are no material facilities, services, assets or properties shared with any Person other than the Group Company which are used in connection with the business of any Group Company.  With respect to the properties and assets it leases, the lessors under the relevant leases have the legal right to lease such properties, and each Group Company is in compliance with each lease to which it is a party and such Group Company holds valid leasehold interests in such properties and assets.  Each Group Company has filed any and all leases it enters into with the relevant Governmental Authority pursuant to the Applicable Laws.  There exists no pending or threatened condemnation, confiscation, dispute, claim, demand or similar proceeding with respect to, or which might materially and adversely affect, the continued use and enjoyment of properties and assets that any Group Company owns or leases, nor is 

 

 

there any factual or legal basis therefor.  All machinery, vehicles, equipment and other tangible personal property owned or leased by a Group Company are (i) in good condition and repair (reasonable wear and tear excepted) and (ii) not obsolete or in need of renewal or replacement, except for renewal or replacement in the ordinary course of business.

 

8.                                      Status of Proprietary Assets.

 

(a)                                 Each Group Company (i) has independently developed and owns free and clear of any Encumbrance, or (ii) has sufficient valid and exclusive right and/or license to use, all Proprietary Assets, including Registered Intellectual Property, necessary and appropriate for its business as now conducted and as proposed to be conducted and without any conflict with or infringement of the rights of other Persons.  Section 8 of the Disclosure Letter contains a complete list of Proprietary Assets, including all Registered Intellectual Properties, owned, licensed to or used by each Group Company.  Each of the Group Companies has taken all steps it reasonably considers necessary (including registrations with, or applications to register with, the appropriate Governmental Authority) to perfect or protect its actual and alleged Proprietary Assets and such Proprietary Assets are valid and enforceable.

 

(b)                                 There are no outstanding options, licenses, Contracts or rights of any kind granted by any Group Company or any other Person relating to any Group Company’s Proprietary Assets, nor is any Group Company bound by or a party to any options, licenses, Contracts or rights of any kind with respect to the Proprietary Assets of any other Person, except, in either case, for standard end-user agreements with respect to commercially readily available intellectual property such as “off the shelf” computer software.

 

(c)                                  No Covenantor has received any communications alleging that it has violated or, by conducting its business as proposed, might violate any Proprietary Assets of any other Person, nor is there any reasonable basis therefor.  To the best knowledge of the Covenantors, no other Person is infringing any Proprietary Assets of any Group Company.

 

(d)                                 None of the Founder nor any of the current or former officers, employees or consultants of any Group Company (at the time of their employment or engagement by a Group Company) has been or is obligated under any Contract, or subject to any judgment, decree or order of any court or administrative agency, that might interfere with the use of his, her or its best endeavors to promote the interests of such Group Company or that could conflict with the business of such Group Company as proposed to be conducted or that might prevent the Founder, officers, employees or consultants from assigning to such Group Company inventions conceived or reduced to practice in connection with services rendered to such Group Company.  Each of the Founder and the Founder Holding Company has assigned to the Group Companies all Proprietary Assets rights owned by it that are related to the business of the Group Companies currently conducted or proposed to be conducted.  Neither the execution, delivery nor performance of the Transaction Agreements or the Restructuring Documents, nor the carrying on of the business of any Group Company by its employees, nor the conduct 

 

 

of the business of any Group Company as proposed, will, to the best knowledge of the Covenantors, conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default under, any Contract under which any of the Founder, officers, employees or consultants is now or was previously obligated.  No government funding, facilities of any educational institution or research center, or funding from third parties has been used in the development of any Proprietary Assets of any Group Company.

 

(e)                                  The trademark applications with the application number of 9676439 has been transferred to the PRC Domestic Company.

 

9.                                      Material Contracts and Obligations.

 

(a)                                 All Contracts, indebtedness, liabilities and other obligations, the term of which has not yet expired and to which a Group Company is a party or by which it is bound, that (i) are material to the conduct and operations of such Group Company’s business and properties (including without limitation the Restructuring Documents), (ii) involve any of the Founder, the Founder Holding Company, officers, consultants, directors, employees, shareholders or Affiliates of such Group Company (other than the labor-related agreements between any of them and any Group Company entered in the ordinary course of business of such Group Company); or (iii) obligate such Group Company to share, license or develop any product or technology (except licenses granted in the ordinary course of business), are disclosed in Section 9 of the Disclosure Letter and have been made available for inspection by the Investor and its counsels.  Such Contract, indebtedness, liabilities and obligations are valid and binding, in full force and effect and enforceable against such Group Company in accordance with its terms.  The Group Companies have duly performed all of their obligations under each such Contract, indebtedness, liabilities and obligations.  None of the Group Companies (and to the best knowledge of the Covenantors, no other party thereto) is in default or breach under or amends or proposes to amend or terminates or proposes to terminate any of such Contract, indebtedness, liabilities and obligations.  No Group Company has received any notice (whether written or not) that it has breached, violated or defaulted under any such Contract, indebtedness, liabilities and obligations or that any other party thereto intends to terminate it.

 

(b)                                 Without prejudice to the foregoing, the Restructuring Documents are valid and binding, in full force and effect and enforceable against each party thereto in accordance with its terms, and none of the parties thereto is in default or breach under any of the Restructuring Documents.

 

(c)                                  For purposes of this Section 9 of Part I of EXHIBIT D, “material” shall mean (i) having value, cost or amount, or imposing liability or contingent liability on any Group Company, in excess of RMB5,000,000 per annum or in aggregate or that extend for more than one (1) year beyond the date of this Agreement, (ii) not terminable upon thirty (30) days notice without incurring any penalty or obligation, (iii) containing exclusivity, non-competition, or similar clauses that impair, restrict or impose conditions on any Group Company’s right to offer or sell products or services in specified areas, during specified periods, or otherwise, (iv) not entered into in the ordinary course of business, (v) 

 

 

transferring or licensing any Proprietary Assets to or from any Group Company (other than licenses granted in the ordinary course of business or licenses for commercially readily available “off the shelf” computer software), (vi) involving acquisition of assets of or by, or investment in any other Person (other than the Group Companies) (whether through equity investment,  merger or otherwise) by, any Group Company, or any other similar transaction to which any Group Company is a party or by which it may be bound, involving an amount in excess of RMB10,000,000, other than those made in the ordinary course of business, or (vii) an agreement the termination of which might be reasonably likely to have a Material Adverse Effect on any Group Company.

 

10.                               Litigation.  There is no action, suit, proceeding, claim, litigation, arbitration or investigation (the “Action”) pending or currently threatened, against any of the Covenantors, any Covenantor’s activities, properties or assets, or, to the best knowledge of the Covenantors, against any officer, director, employee or shareholder of a Group Company in connection with such officer’s, director’s, employee’s or shareholder’s relationship with, or actions taken for or on behalf of, the Group Company or otherwise, except for Actions of disputes on vehicles and labor.  No Action with respect to any Applicable Law relating to anti-money laundering is taking place or threatened against any Covenantor in any court or Governmental Authority.  To the best knowledge of the Covenantors, there is no factual or legal basis for any such Action.  None of the Covenantors is a party to or subject to the provisions of any order, writ, injunction, judgment or decree of any court or Governmental Authority or instrumentality and there is no Action by any Covenantor currently pending or which it intends to initiate. No Government Authority has at any time challenged or questioned in writing the legal right of any Group Company to conduct its business as presently being conducted or proposed to be conducted. No Group Company has received any opinion or memorandum or advice from any legal counsel to the effect that it is exposed, from a legal standpoint, to any liability or disadvantage which may be material to its business as presently being conducted or proposed to be conducted.

 

11.                               Compliance with Laws; Consents and Permits.

 

(a)                                 None of the Group Companies is in violation of any Applicable Law (including without limitation Applicable Laws relating to Tax, labor, social or housing security payment, borrowing, foreign exchange control, anti-money laundering, anti-corruption, corporate formation and governance, conduct of business in general, possession of necessary and effective licenses and permits and ownership of assets and properties).  Each Group Company has complied with all Applicable Laws (including without limitation Applicable Laws relating to Tax, labor, social or housing security payment, borrowing, foreign exchange control, anti-money laundering, anti-corruption, corporate formation and governance, conduct of business in general, possession of necessary and effective licenses and permits and ownership of assets and properties) within the relevant jurisdictions.  No Covenantor has received any notice from any Governmental Authority regarding (i) any actual, alleged, possible or potential violation of, or failure to comply with, any Applicable Law or any governmental order or (ii) any actual, alleged, possible or potential obligation on the part of any Covenantor to undertake, or to bear all or any portion of the 

 

 

cost of, any remedial action of any nature. No Covenantor is under investigation with respect to a violation of any Applicable Law or governmental order.

 

(b)                                 All consents, permits, approvals, orders, authorizations or registrations, qualifications, designations, declarations or filings by or with any Governmental Authority or any third party (including without limitation any lender, if applicable), which are required to be obtained or made by each Covenantor or any Affiliate or Associate of such Covenantor in connection with the consummation of the transactions contemplated under the Transaction Agreements and the Restructuring Documents shall have been obtained or made prior to and be effective as of the date hereof and will remain effective as of the date of the Closing.  Each Group Company has all franchises, permits, licenses and any similar authority necessary for the conduct of its business as currently conducted and as proposed to be conducted, which are in full force and effect.  None of the Group Companies is in default under any of such franchise, permit, license or other similar authority.  No Covenantor has received any written notice from any Governmental Authority regarding any actual or possible default or violation of any such franchise, permit, license or other similar authority; and no suspension, cancellation or termination of any such franchise, permit, license or other similar authority is threatened or imminent.

 

(c)                                 For purposes of this Agreement, “Government Official” means (i) a governmental official or (ii) an officer, employee or Person acting in an official capacity for or on behalf of a government, Governmental Authority, public international organization, state-owned enterprise, state-controlled enterprise or entities otherwise holding legislative, administrative or judicial office.  Each of the Covenantors, and, to the best knowledge of the Covenantors, all of its directors, officers, shareholders, agents, employees or representatives or any other Persons associated with or acting for or on behalf of the foregoing (each a “Representative”) are in compliance with and have complied with all Applicable Law relating to anti-bribery, anti-corruption, anti-money laundering, recordkeeping and internal controls.  Without limiting the generality of the foregoing, none of the Covenantors, nor, to the best knowledge of the Covenantors, any of its Representatives, has (A) offered to pay, paid, promised to pay, or authorized the payment of any money, or (B) offered to give, given, promised to give, or authorized the giving of anything of value,

 

(I)                                  to any Government Official or political party or official thereof or any candidate for political office (or a Person that a Covenantor or a Representative might reasonably expect to deliver such money or gift or portion thereof, directly or indirectly, to a Government Official or political party or official thereof or any candidate for political office) for the purpose of:

 

(i)                                     (x) influencing any act or decision of such Government Official or political party or official thereof or any candidate for political office, (y) inducing a Government Official or political party or official thereof or any candidate for political office to do or omit to do any act in 

 

 

violation of the lawful duty of such Government Official or political party or official thereof or any candidate for political office, or (z) securing any improper advantage; or

 

(ii)                                  inducing such Government Official or political party or official thereof or any candidate for political office to use his or her or its influence with any Governmental Authority to affect or influence any act or decision of such Governmental Authority, in order to help a Covenantor to obtain, retain business for or with, or direct business to any Covenantor.

 

(II)                             to any other Person with the express intention of achieving the purposes set forth in (i) and /or (ii) above indirectly.

 

(d)                                 Neither the Group Companies, nor, to the best knowledge of the Covenantors, any of their respective Subsidiaries, Affiliates, Principals or Representatives, is identified on the Prohibited Lists as subject to prohibitions on financial transactions with United States persons.  Neither the Group Companies, nor, to the best knowledge of the Covenantors, their respective Subsidiaries, Affiliates or Principals has any business relationship with any Restricted Country or with any Person on the Prohibited Lists.

 

12.                               Non-Contravention.  None of the Covenantors is in, nor shall the conduct of its business as currently or proposed to be conducted result in, violation, breach or default of (a) any term of the Constitutional Documents of any Group Company or the Founder Holding Company, or (b) in any material respect any term or provision of any Contract to which such Covenantor is a party or by which it may be bound, including without limitation the Restructuring Documents (the “Covenantor Contracts”) or (c) any provision of any judgment, decree, order or Applicable Law applicable to or binding upon any Covenantor.  None of the activities, Contract, or rights of any Covenantor is ultra vires or unauthorized or in violation of any Applicable Law.  The execution, delivery and performance of and compliance with the Transaction Agreements and the Restructuring Documents, and the consummation of the transactions contemplated hereby or thereby do not and will not result in any such violation, breach or default, or conflict with or constitute, with or without the passage of time or the giving of notice or both, either a default under any Constitutional Documents of any Group Company or the Founder Holding Company or any Covenantor Contract, or a violation of any Applicable Law, or an event which results in the creation of any Encumbrance (or any obligation to create any Encumbrance) upon any asset of any Covenantor.

 

13.                               Disclosure.  Each of the Covenantors has provided the Investor with all the information that the Investor has requested for deciding whether to purchase the Subscribed Shares and all information that each of the Covenantors believes is reasonably necessary to enable the Investor to make such decision.  No representation or warranty by the Covenantors in the Transaction Agreements and no information or materials provided by the Covenantors to the Investor in connection with the negotiation, execution, delivery or performance of the Transaction Agreements contains or will contain any untrue statement of fact, or omits or will omit to state any fact required to be stated therein or necessary in order to make the statements therein,

 

 

in light of the circumstances in which they are made, not misleading, including without limitation the Financial Statements and any information contained therein.

 

14.                               Registration Rights.  Except as provided in the Transaction Agreements, none of the Covenantors has granted or agreed to grant any Person any registration rights with respect to, nor is any Group Company obliged to list or register, any Group Company’s equity or registered capital on any securities exchange.

 

15.                               Activities Since Financial Statements.  Excepted as provided in Section 15 of the Disclosure Letter, since the date of the Financial Statements, (a) each Group Company has conducted their respective businesses in ordinary course, in substantially the same manner in which they had been previously conducted, and has not taken any actions that might require the consent of any Series A Preferred Shareholder, any Series B Preferred Shareholder, any Series C Preferred Shareholder, any Series D Preferred Shareholder, any Series E Preferred Shareholder, any Series F Preferred Shareholder, any Series G Preferred Shareholder or the Investor or any director nominated or  appointed by such shareholder under any Transaction Agreement, (b) there has not been any event or condition of any character which might have a Material Adverse Effect on any Covenantor, and (c) there has not been any dividend or other distributions declared or made by any Group Company to or for the benefit of its equity holders.

 

16.                               Tax Matters.

 

(a)                                 Each of the Group Companies has timely filed all Tax returns and reports as required by Applicable Law.  Such Tax returns and reports were properly prepared in compliance with Applicable Laws and were (and will be) true, accurate and correct.  None of such Tax returns contains a statement that is false or misleading or omits any matter that is required to be included or without which the statement would be false or misleading. There is no pending dispute with, or notice from, any Tax Authority relating to any such Tax returns filed by any Group Company.

 

(b)                                 No Group Company has been the subject of any examination or investigation by any Tax Authority relating to the conduct of its business or the payment or withholding of Taxes that has not been resolved or is currently the subject of any examination or investigation by any Tax Authority relating to the conduct of its business or the payment or withholding of Taxes.  No Group Company is responsible for the Taxes of any other Person by reason of contract, successor liability or otherwise.

 

(c)                                  All Taxes actually assessed against each of the Group Companies (whether or not shown on any Tax return or report) have been paid on or prior to the due date for such Taxes.  None of Group Companies is currently the beneficiary of an extension of time within which to file any Tax return or report with any applicable Tax Authority.

 

(d)                                 There has been no unresolved deficiency for Taxes or social or housing security payments assessed against any of the Group Companies by any Tax Authority and no circumstances exist, to the knowledge of the Covenantors 

 

 

that might reasonably be expected to cause any Group Company to be assessed for a Tax deficiency.

 

(e)                                  Each of the Group Companies keeps all of its financial books and accounting records in accordance with PRC GAAP and the Applicable Laws, and none of the Group Company keeps or has kept any financial books or accounting records for any deceitful purpose that is prohibited by the Applicable Laws.

 

(f)                                   To the best knowledge of the Covenantors and except as disclosed in Section 16 of the Disclosure Letter, the Group Companies do not have any pending Tax liability in any jurisdiction other than the PRC, including not creating any Tax residency or taxable or permanent establishment in any jurisdiction other than the PRC.

 

(g)                                  Except as disclosed in Section 16 of the Disclosure Letter, all related party transactions of the Group Companies (except for transaction between Group Companies incorporated in the PRC) are conducted on an arm’s length basis in accordance with Applicable Laws.

 

(h)                                 To the best knowledge of the Covenantors and except as disclosed in Section 16 of the Disclosure Letter, no Group Company has entered into or been engaged in or been a party to any transaction which is artificial or fictitious or any transaction or series of transactions or scheme or arrangement of which the main or dominant purpose or one of the main or dominant purposes was the avoidance or deferral of or reduction in the liability to Tax of the Group Companies.

 

(i)                                     No Group Company is, nor expects to become, a passive foreign investment company or controlled foreign corporation as defined in the United States Internal Revenue Code of 1986, as amended.

 

(j)                                    No shareholder of any member of a Group Company, solely by virtue of its status as shareholder of such Group Company, has personal liability under local law for the debts and claims of such Group Company.  There has been no communication from any Tax Authority relating to or affecting the Tax classification of any member of the Group Company.

 

17.                               Interested Party Transactions.

 

(a)                                 Except as disclosed in Section 17 of the Disclosure Letter, none of the Covenantors, officer, employee or director of a Group Company or of the Founder Holding Company or any Affiliate or Associate of any such Person has any Contract, understanding, proposed transaction with, or is indebted to, any Group Company, nor is any Group Company indebted (or committed to make loans or extend or guarantee credit) to any of such Persons (other than for accrued salaries, reimbursable expenses or other standard employee benefits) (other than those transactions contemplated in the Transaction Agreements).  None of the Founder and his Affiliates has, may have or may claim to have any claims, obligations or liabilities against any Group Company.

 

 

(b)                                 Neither any officer, employee or director of a Covenantor, nor any Affiliate or Associate of any such Person has any direct or indirect ownership interest in any firm or corporation with which a Covenantor is affiliated or with which a Covenantor has a business relationship, or any firm or corporation that competes with a Group Company.  Neither the Founder nor any of his Affiliate or Associate has any direct or indirect ownership interest in any firm or corporation with which a Group Company is affiliated or with which a Group Company has a business relationship, or any firm or corporation that competes with a Group Company (other than other Group Companies).

 

(c)                                  None of the Covenantors nor officer, employee or director of a Covenantor or any Affiliate or Associate of any such Person has had, either directly or indirectly, a material interest in: (i) any Person which purchases from or sells, licenses or furnishes to a Group Company any goods, property, intellectual or other property rights or services; or (ii) any Contract to which another Covenantor is a party or by which it may be bound or affected (other than those Contracts contemplated in the Transaction Agreements).

 

(d)                                 All transactions entered or to be entered into by any Group Company shall be for the benefit of the Group Companies.

 

18.                               Employee Matters.  No Group Company is delinquent in payments to any of its employees, consultants, officers or independent contractors for any wages, salaries, commissions, bonuses, or other compensation for any service performed for it or amounts required to be reimbursed to such employees, consultants, officers or independent contractors.  Each Group Company has complied with all applicable employment and labor laws.  Except as set forth in Section 18 of the Disclosure Letter or as required by Applicable Laws, none of the Group Companies has policy, practice, plan, or program of paying severance pay or any form of severance compensation in connection with the termination of employment services.  To the best knowledge of the Covenantors, none of the Group Company’s Key Employees intends to terminate his or her employment with such Group Company, nor does any Group Company have a present intention to terminate the employment of any Key Employee.  None of the Group Companies is a party to or bound by any currently effective incentive plan (other than the ESOP), profit sharing plan, retirement agreement or other employee compensation agreement.  The name of each ESOP option holder (if any) and the number of Ordinary Shares that such ESOP option holder has purchased or is entitled to purchase are disclosed in Section 18 of the Disclosure Letter.  Each such ESOP option holder (if any) has duly entered into an employee stock option agreement with the Company which has been provided to the Investor for review prior to the date of the Closing.  Each of the Key Employees of the Group Companies has duly executed a non-compete, non-solicitation, confidential information and invention assignment agreement with such Group Company in the form or forms delivered to the counsel for the Investor (the “Confidentiality Agreement”).  The Covenantors have no knowledge that any of the Key Employees are in violation thereof.  Unless disclosed in Section 18 of the Disclosure Letter, neither the Founder nor the Key Employees of any Group Company are involved in any daily business, operation, management and administration of any entity other than the Group Companies.  Each of the Key Employees of the Group Companies and the Founder has devoted his/her full business efforts and time to the Group Companies, and the performance of his/her duties to the 

 

 

Group Companies will not constitute a breach of, or otherwise contravene, the terms of any employment or other agreement or policy to which he/she is a party or is otherwise bound.  Nothing contained in the Confidentiality Agreement or other related agreements will modify the provisions hereof and in the case of any conflict, this provision shall prevail. No Group Company is bound by or subject to (and none of its assets or properties is bound by or subject to) any written or oral, express or implied, Contract with any labor union, and no labor union has requested or, to the best knowledge of the Covenantors, has sought to represent any of the employees, representatives or agents of any Group Company.  There is no strike or other labor dispute involving any Group Company pending, or to the best knowledge of the Covenantors, threatened, nor is any Covenantor aware of any labor organization activity involving any employee of any Group Company.

 

19.                               No Other Business.  The Company was formed solely to acquire and hold an equity interest in Uxin HK, UcarEase BVI, Perfect Harmony, UcarBuy BVI, Xin Limited and Uxin Used Car Cayman.  Since its formation, the Company has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. UcarEase BVI was formed solely to acquire and hold an equity interest in GloryFin HK. Since its formation, UcarEase BVI has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. Uxin Used Car Cayman was formed solely to acquire and hold an equity interest in UcarShow  HK.  Since its formation, Uxin Used Car Cayman has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. Perfect Harmony was formed solely to acquire and hold an equity interest in Failubo. Since its formation, Perfect Harmony has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. UcarBuy BVI was formed solely to acquire and hold an equity interest in UcarBuy HK. Since its formation, UcarBuy BVI has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. Xin Limited was formed solely to acquire and hold an equity interest in Xin HK. Since its formation, Xin Limited has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. Uxin HK was formed solely to acquire and hold an equity interest in the WFOE. Since its formation, Uxin HK has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT E, has not incurred any liability.   GloryFin HK was formed solely to acquire and hold an equity interest in Kaifeng Financing Lease and Boyu Financing Lease.  Since its formation, GloryFin HK has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. UcarShow HK was formed solely to acquire and hold an equity interest in Yougu Shanghai, Youfang Beijing and Youxin Shuxiang.  Since its formation, UcarShow HK has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. UcarBuy HK was formed solely to acquire and hold an equity interest in Youxin Shanghai.  Since its formation, UcarBuy HK has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. Xin HK was formed solely to acquire and hold an equity interest in Xinhong Shanghai.  Since its formation, Xin HK has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. Fairlubo was formed solely to acquire and hold an equity interest in Fairlubo HK.  Since its formation, Fairlubo has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any 

 

 

liability.  Fairlubo HK was formed solely to acquire and hold an equity interest in Lubao WFOE.  Since its formation, Fairlubo HK has not engaged in any other business and, subject to Section 6 of Part I of EXHIBIT D, has not incurred any liability. Since the WFOE’s establishment, it has engaged solely in the WFOE Principal Business and in acquiring and holding equity interest in Youxin Pengda, Youhan Shanghai, Youxin Auction and Youxin Automobile, and has not engaged in any other activities. Since their respective establishment, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile and Youxin Yuecheng have engaged solely in the WFOE Principal Business and have not engaged in any other activities. Since their respective establishment, Kaifeng Financing Lease and Boyu Financing Lease have engaged solely in the Kaifeng Principal Business and have not engaged in any other activities. Since their respective establishment, each of the PRC Domestic Company and the PRC Subsidiaries have engaged solely in the WFOE Principal Business and has not engaged in any other activities. Since their resptecitve establishment,  Yougu Shanghai, Youfang Beijing, Youxin Shuxiang, Youxuan Beijing, Youzhen Beijing, Youxin Yishouche and Chebole Beijing have engaged solely in the Yougu/Youfang Principal Business and have not engaged in any other activities.  Since its establishment, each of Youxin Shanghai, Youyuan Beijing and Xinhong Shanghai has engaged solely in the Youxin Principal Business and has not engaged in any other activities.  Since its establishment, each of Lubao WFOE, Fengshun Lubao, Shanghai Lubao and Tianjin Lubao has engaged solely in the Fengshun Lubao Principal Business and has not engaged in any other activities.

 

20.                               Financial Advisor Fees.  Except as set forth in Section 20 of the Disclosure Letter, there exists no Contract between any Covenantor or any of their respective Affiliates on one hand, and any investment bank or other financial advisor on the other hand under which any Covenantor or any of their respective Affiliates may owe any brokerage, placement or other fees relating to the transactions contemplated by this Agreement or by other Transaction Agreements.

 

21.                               Other Representations and Warranties Relating to the WFOE, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing, Youxin Ruida Assets, the PRC Domestic Company and the PRC Subsidiaries.

 

(a)                                 The Constitutional Documents and certificates and related contracts and agreements of each of the WFOE, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing, Youxin Ruida Assets, the PRC Domestic Company and the PRC Subsidiaries are valid and binding and have been duly approved or issued (as applicable) by and filed with the competent PRC Governmental Authorities.

 

(b)                                 Except as set forth in Section 21(b) of the Disclosure Letter, all material consents, approvals, authorizations or licenses for the due and proper 

 

 

establishment of, and operation of business by, each of the WFOE, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing, Youxin Ruida Assets, the PRC Domestic Company and the PRC Subsidiaries have been duly obtained from the relevant PRC Governmental Authorities and are in full force and effect.

 

(c)                                  All material filings and registrations with the PRC Governmental Authorities required in respect of each of the WFOE, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing, Youxin Ruida Assets, the PRC Domestic Company and the PRC Subsidiaries and its respective operations, including but not limited to the registrations with the MOFCOM, the AIC, the State Administration for Foreign Exchange of the PRC (the “SAFE”), Tax bureau of the PRC and customs authorities of the PRC have been duly completed in accordance with the relevant PRC Applicable Laws.

 

(d)                                 Except as set forth in Section 21(d) of the Disclosure Letter, the Founder has fully complied with all legal requirements with respect to his direct or indirect holding of equity interest in the Founder Holding Company and the Ordinary Shares or other securities in the Company (if any), and their indirect holding of the equity interests in UcarEase BVI, Uxin Used Car Cayman, Perfect Harmony, Uxin HK, GloryFin HK, UcarShow HK, Fairlubo, Fairlubo HK, UcarBuy BVI, UcarBuy HK, Xin Limited, Xin HK, Lubao WFOE, Kaifeng Financing Lease, Boyu Financing Lease, the WFOE, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Xinhong Shanghai, and Chebole Beijing and with respect to the Restructuring Documents on a continuing basis, including but not limited to registering such shareholding with the SAFE, in a timely manner, as required under the Notice on Relevant Issues concerning Foreign Exchange Administration of Overseas Investment and Financing as well as Inbound Investment through Offshore Special Purpose Companies by Domestic Residents (《国家外汇管理局关于境内居民通过特殊目的公司境外投融资及返程投资外汇管理有关问题的通知》issued by the SAFE on July 4, 2014, (“Circular No. 37”) (and its predecessor rule, the Notice on Relevant Issues concerning Foreign Exchange Administration of Oversea Financing and Roundtrip Investment through Offshore Special Purpose Companies by Domestic Residents (《国家外汇管理局关于境内居民通过境外特殊目的公司融资及返程投资外汇管理有关问题的通知》, “Circular No. 75”) as well as implementation rules promulgated by the SAFE thereunder collectively, the “SAFE Regulations”), and any other applicable requirements imposed by the 

 

 

PRC Governmental Authorities, and obtaining all necessary consents, approvals, permits and registrations in connection therewith.

 

(e)                                  None of the WFOE, the PRC Domestic Company, the PRC Subsidiaries, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Youxin Ruida Assets and Chebole Beijing is in receipt of any letter or notice from any relevant Governmental Authority notifying revocation of any permits or licenses issued to it for non-compliance or the need for compliance or remedial actions in respect of the activities carried out directly or indirectly by it.

 

(f)                                   Each of the WFOE, the PRC Domestic Company, the PRC Subsidiaries, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Youxin Ruida Assets and Chebole Beijing has been conducting and will conduct its business activities within the permitted scope of business or is otherwise operating its business in compliance with all Applicable Laws in all material aspects and with all requisite or material licenses, permits and approvals granted by the competent PRC Governmental Authorities and/or any other Person.

 

(g)                                  In respect of approvals, licenses or permits requisite for the conduct of any part of the business of the WFOE, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing, Youxin Ruida Assets, the PRC Domestic Company and the PRC Subsidiaries which are subject to periodic renewal or examination, none of the Covenantors has any reason to believe that such requisite renewals will not be timely granted, or examinations passed, by the relevant PRC Governmental Authorities and/or any other Person.

 

(h)                                 Each of the WFOE, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing, Youxin Ruida Assets, the PRC Domestic Company and the PRC Subsidiaries has passed its annual inspection by, or submitted annual reports to, the relevant Governmental Authorities for its operation in its last three years (where applicable), and the competent AIC has affixed an annual inspection chop on its business license, where applicable.

 

 

(i)                                     Except as set forth in Section 21(i) of the Disclosure Letter, with regard to employment and staff or labor management, each of the the WFOE, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Xinhong Shanghai, Youyuan Beijing, Youxin Yishouche, Chebole Beijing, Youxin Ruida Assets, the PRC Domestic Company and the PRC Subsidiaries has complied with all PRC Applicable Laws in all material aspects, including without limitation, laws and regulations pertaining to social insurance, medical insurance, retirement insurance, maternity insurance, work-related injury insurance, non-employment insurance and housing fund.

 

(j)                                    Each of the WFOE, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing, Youxin Ruida Assets, the PRC Domestic Company and the PRC Subsidiaries has registered each of its offices, which are providing the services to its clients and locating at the address other than its registered address, as the branch with the competent AIC.

 

(k)                                 Each branch of the WFOE has already obtained the following certificates for its valid existence:

 

(i)                           Organization Code Certificate (if not integrated into the Business License); and

 

(ii)                        State and Local Tax Certificate (if not integrated into the Business License).

 

(l)                                     Each branch of Kaifeng Financing Lease has already obtained the following certificates for its valid existence:

 

(i)                           Organization Code Certificate (if not integrated into the Business License); and

 

(ii)                        State and Local Tax Certificate (if not integrated into the Business License).

 

22.                               Environmental Matters

 

(a)                                 Each Group Company is not required to obtain any permits, licenses or other approval (collectively, “Environmental Licenses”) required by or in relation to and has complied with all applicable environmental laws of the relevant jurisdictions.

 

(b)                                 No Group Company has used, disposed of, generated, stored, processed, transported, dumped, released, deposited, buried or emitted any dangerous substance at, on, from, to or under any of its assets or at, on, from, to or under 

 

 

any other property which is in breach of any applicable environmental laws of any jurisdictions.

 

23.                               Minute Books.  The internal records of each Group Company contain a complete summary of all material meetings and actions taken by directors and equity interest holders of such Group Company since its time of formation, and reflect all transactions referred to in such minutes accurately in all material respects.

 

24.                               Insurance.  Each Group Company’s insurance policies currently in effect have been disclosure in Section 24 of the Disclosure Letter.  Each of the Group Companies maintains insurance which meets the relevant legal requirement in accordance with the Applicable Laws.  None of the Group Companies has done or omitted to do or suffered anything to be done or not to be done other than any acts in the ordinary course of business which has or might render any policies of insurance taken out by it or by any other Person in relation to any of such Group Company’s assets void or voidable or which might result in an increase in the rate of premiums on the said policies and there are no claims outstanding and, to the Covenantors’ best knowledge, no circumstances which might give rise to any claim under any of such policies of insurance.  None of the Covenantors has received notice that any insurer under any such policy is denying liability with respect to a claim or defending under a reservation of rights clause.  All such policies are legal, valid, binding and enforceable, and are in full force and effect and have not been cancelled.  All premiums on such policies have been paid in full when due and the policies are not subject to cancellation.  None of the Group Companies is in breach or default of any policy.  There are no claims that have not been reimbursed to any Group Company.

 

25.                               No Immunity.  Each of the Covenantors is generally subject to civil and commercial law with respect to its obligations under each of the Transaction Agreements and the Restructuring Documents to which it is a party; the execution, delivery and performance of the Transaction Agreements and the Restructuring Documents by it constitutes private and commercial acts and neither it nor any of its assets enjoy any right of immunity from set-off, suit or execution in respect of its obligations under each of the Transaction Agreements and the Restructuring Documents to which it is a party.

 

26.                               Reliance on the Due Diligence Reports. Each of the Covenantors hereby acknowledges the issuance of  the Due Diligence Reports by KPMG and Han Kun Law Offices and represents and warrants that (i) all information provided by any of the Covenantors to KPMG and Han Kun Law Offices is true, accurate and complete and (ii) the facts and assumptions in the Due Diligence Reports are true and accurate as of their respective issuance date.

 

 

Part II

 

REPRESENTATIONS AND WARRANTIES OF FOUNDER

 

1.                                      The Founder is not declared nor deemed bankrupt or insolvent in any applicable bankruptcy or insolvency proceedings.

 

2.                                      The Founder is not, for any reason, in violation of any fiduciary or confidential relationship with any Group Companies.

 

3.                                      The Founder has not been (i) subject to voluntary or involuntary petition under any applicable bankruptcy laws or any applicable insolvency law or the appointment of a manager, receiver, or similar officer by a court for his business or property; (ii) convicted in a criminal proceeding or named as a subject of a pending criminal proceeding (excluding traffic violations and other minor offences); (iii) subject to any order, judgment, or decree of any court of competent jurisdiction permanently or temporarily enjoining him from engaging, or otherwise imposing limits or conditions on his engagement in any securities, investment advisory, banking, insurance, or other type of business or acting as an officer or director of a public company; or (iv) found by a court of competent jurisdiction in a civil action or by any Governmental Authority to have violated any securities, commodities or unfair trade practices law, which such judgment or finding has not been subsequently reversed, suspended, or vacated.

 

4.                                      The Founder is of full age and of sound mind and has full capacity to enter into and perform his obligations under this Agreement and other Transaction Agreements to which he is a party.

 

5.                                      The Founder is not subject to any Contracts or any other obligations which prohibit or restrict the Founder’s investment or involvement in any Group Company or the Founder Holding Company.

 

6.                                      Prior to the signing of this Agreement, the Founder has been advised by the Investor:

 

(a)                                 that he has the choice not to proceed with the transaction in connection with this Agreement and other Transaction Agreements to which he is a party;

 

(b)                                 to seek independent legal advice in relation to his obligations and liabilities under this Agreement and other Transaction Agreements to which he is a party;

 

(c)                                  to obtain the financial information of the other Covenantors and engage his own financial advisers to advise him on such financial information before signing this Agreement and other Transaction Agreements to which he is a party; and

 

(d)                                 that he has been provided with a copy of each of the Transaction Agreements.

 

7.                                      The Founder has obtained independent legal advice and fully understands the nature and extent of his obligations and liabilities under this Agreement and other 

 

 

Transaction Agreements to which he is a party and has acted independently and free from any undue influence of any Person.

 

 

EXHIBIT E

 

REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

 

1.                                      Due Organization.  The Investor is duly organized, validly existing and in good standing (or equivalent status in the relevant jurisdiction) under, and by virtue of, the laws of the place of its incorporation or establishment.

 

2.                                      Authorization. The Investor has all requisite power, authority and capacity to enter into the Transaction Agreements to which it is a party, and to perform its obligations hereunder and thereunder.  Each Transaction Agreement to which it is a party has been duly authorized, executed and delivered by the Investor.  Each Transaction Agreement to which it is a party, when executed and delivered by the Investor, will constitute valid and legally binding obligations of the Investor, enforceable against it in accordance with its terms, except as may be limited by (a) applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, and (b) the effect of rules of law governing the availability of equitable remedies.

 

 

EXHIBIT F

 

PART I

 

COVENANTS OF COVENANTORS

 

1.                                      Conversion.  The Company covenants to at all times reserve sufficient Ordinary Shares or, if the reservation is insufficient, the Covenantors shall take all actions necessary to authorize such additional Ordinary Shares, for issuance upon conversion of all Series G+  Preferred Shares under the Transaction Agreements.

 

2.                                      Use of the Series G+ Subscription Price. Unless otherwise approved in writing by the Investor, the Series G+ Subscription Price shall be exclusively used to fund the development and operation of the Group Companies’ business and other general business activities in the WFOE Principal Business, Kaifeng Principal Business, Yougu/Youfang Principal Business, or Youxin Principal Business in accordance with the budget and business plan as approved in accordance with the terms and provisions of the Transaction Agreements.

 

3.                                      Business of the Company.  Unless otherwise approved by the Investor, the business of the Company shall be restricted to the holding, management and disposition of an equity interest in Uxin HK, UcarEase BVI, Perfect Harmony, Uxin Used Car Cayman, Xin Limited and UcarBuy BVI.

 

4.                                      Business of UcarEase BVI. Unless otherwise approved by the Investor, the business of UcarEase BVI shall be restricted to the holding, management and disposition of the equity interest in GloryFin HK.

 

5.                                      Business of Uxin Used Car Cayman. Unless otherwise approved by the Investor, the business of the Uxin Used Car Cayman shall be restricted to the holding, management and disposition of the equity interest in UcarShow HK.

 

6.                                      Business of Perfect Harmony. Unless otherwise approved by the Investor, the business of Perfect Harmony shall be restricted to the holding, management and disposition of the equity interest in Fairlubo.

 

7.                                      Business of Uxin HK. The business of Uxin HK shall be subject to the prior approval of the Investor.

 

8.                                      Business of GloryFin HK. Unless otherwise approved by the Investor, the business of GloryFin HK shall be restricted to the holding, management and disposition of the equity interest in Kaifeng Financing Lease and Boyu Financing Lease.

 

9.                                      Business of UcarShow HK. Unless otherwise approved by the Investor, the business of UcarShow HK shall be restricted to the holding, management and disposition of the equity interest in Yougu Shanghai, Youfang Beijing and Youxin Shuxiang.

 

10.                               Business of Fairlubo. Unless otherwise approved by the Investor, the business of Fairlubo shall be restricted to the holding, management and disposition of the equity interest in Fairlubo HK.

 

 

11.                               Business of Fairlubo HK. Unless otherwise approved by the Investor, the business of Fairlubo HK shall be restricted to the holding, management and disposition of the equity interest in Lubao WFOE.

 

12.                               Business of UcarBuy BVI. Unless otherwise approved by the Investor, the business of the UcarBuy BVI shall be restricted to the holding, management and disposition of the equity interest in UcarBuy HK.

 

13.                               Business of UcarBuy HK. Unless otherwise approved by the Investor, the business of the UcarBuy HK shall be restricted to the holding, management and disposition of the equity interest in Youxin Shanghai and Xinhong Shanghai.

 

14.                               Business of Xin Limited. Unless otherwise approved by the Investor, the business of the Xin Limited shall be restricted to the holding, management and disposition of the equity interest in Xin HK.

 

15.                               Business of Xin HK. Unless otherwise approved by the Investor, the business of the Xin HK shall be restricted to the holding, management and disposition of the equity interest in Xinhong Shanghai.

 

16.                               Business of Lubao WFOE, Fengshun Lubao, Shanghai Lubao and Tianjin Lubao. Unless otherwise approved by the Investor, the business of Lubao WFOE, Fengshun Lubao, Shanghai Lubao and Tianjin Lubao shall be restricted to the Fengshun Lubao Principal Business, and the holding, management and disposition of the equity interest in its Subsidiaries.

 

17.                               Business of Yougu Shanghai, Youfang Beijing, Youxin Shuxiang, Youxuan Beijing, Youzhen Beijing, Youxin Yishouche, Youxin Ruida Assets and Chebole Beijing. Unless otherwise approved by the Investor, the business of Yougu Shanghai, Youfang Beijing, Youxin Shuxiang, Youxuan Beijing, Youzhen Beijing, Youxin Yishouche, Youxin Ruida Assets and Chebole Beijing shall be restricted to the Yougu/Youfang Principal Business, and the holding, management and disposition of the equity interest in its Subsidiaries.

 

18.                               Business of Kaifeng Financing Lease and Boyu Financing Lease. Unless otherwise approved by the Investor, the business of Kaifeng Financing Lease and Boyu Financing Lease shall be restricted to the Kaifeng  Principal Business, and the holding, management and disposition of the equity interest in its Subsidiaries.

 

19.                               Business of Youxin Shanghai, Youyuan Beijing and Xinhong Shanghai. Unless otherwise approved by the Investor, the business of Youxin Shanghai, Youyuan Beijing and Xinhong Shanghai shall be restricted to the Youxin Principal Business, and the holding, management and disposition of the equity interest in its Subsidiaries.

 

20.                               Business of the WFOE, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng, the PRC Domestic Company and the PRC Subsidiaries.  Unless otherwise approved by the Investor, the business of the WFOE, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Youxin Yuecheng the PRC Domestic Company and the PRC Subsidiaries shall be restricted to the WFOE Principal Business, and the holding, management and disposition of the equity interest in their Subsidiaries.

 

 

21.                               Governance of Group Company.  Except as otherwise provided in the Transaction Agreements, the Covenantors shall not grant any additional Board seats or have any outstanding observation rights.  The board of directors of each Group Company shall be re-constituted so that it shall have the same number of directors as the Company.  All directors of any Group Company (other than the Company) shall be appointed and removed only by the Company pursuant to action of the Board.  The Covenantors shall procure that all corporate actions of any Group Company shall not be in violation of the Shareholders Agreement, the Restated Articles, other Transaction Agreements and the Restructuring Documents.

 

22.                               Board Meeting.  At least one (1) Board meeting shall be held every quarter.

 

23.                               Confidentiality Agreement.  The Covenantors shall cause all of the respective current and future key employees, directors (other than any director nominated or appointed by any Series A Preferred Shareholder, Series B Preferred Shareholder, Series C Preferred Shareholder, Series D Preferred Shareholder, Series E Preferred Shareholder, Series F Preferred Shareholder, or Series G Preferred Shareholder), officers and consultants of any Group Company and the Founder to enter into each applicable Group Company’s standard form Confidentiality Agreement in form and substance satisfactory to the Investor.

 

24.                               Additional Covenants.  Except as required by this Agreement, no resolution of the directors, owners, or shareholders of any of the Group Companies shall be passed, nor shall any Contract be entered into, in each case, prior to the Closing without the prior written consent of the Investor, except that each of the Group Companies may carry on its respective business in the same manner as heretofore and may pass resolutions and enter into Contracts for so long as they are effected in the ordinary course of business.

 

25.                               Conduct of Business.  Between the date hereof and the date of the Closing, each Group Company shall conduct its respective business in the ordinary course, unless otherwise contemplated by the Transaction Agreements.

 

26.                               Notice of Changes.  Between the date hereof and the date of the Closing, if any of the Covenantors becomes aware of any fact or event that might cause the representations and warranties of the Covenantors set forth in Part I of EXHIBIT D or representations and warranties of the Founder set forth in Part II of EXHIBIT D to (a) fail to be true and correct, or (b) be misleading, such Covenantor shall give immediate written notice thereof to the Investor in which event the Investor may at any time after receiving such notice terminate the rights and obligations between the Covenantors, on one hand, and the Investor, on the other hand, under this Agreement by written notice without any penalty whatsoever and without prejudice to any rights that the Investor may have under this Agreement, any Transaction Agreement or Applicable Law.

 

27.                               Further Assurance.  Each of the Covenantors shall jointly and severally (a) cooperate with the Investor to provide all due diligence requested by the Investor; (b) take all necessary or appropriate corporate and other actions to consummate the transactions contemplated by this Agreement and by other Transaction Agreements, including the satisfaction of the closing conditions set forth in any Transaction Agreement; and (c) do and perform, or cause to be done and performed, all such further acts, and execute and deliver all such other agreements, certificates, instruments and documents required to give effect to the terms and intent of this Agreement and other Transaction Agreements.

 

 

28.                               Compliance.

 

(a)                                 Each of the Covenantors shall at all times ensure that all activities of the Group Companies and the transactions contemplated under any Transaction Agreement (including without limitation the issuance of Subscribed Shares) shall be in compliance with all Applicable Laws (including without limitation the Applicable Laws relating to financing, Tax, labor (including non-domestic employees), information services, intellectual property, social or housing security payment, borrowing, foreign exchange control, anti-money laundering, corporate formation and governance and conduct of business in general, possession of necessary and effective licenses and permits and ownership of assets and properties), except for any non-compliance that would not have any Material Adverse Effect on any Covenantor.  Each of the Covenantors shall also at all times comply with any applicable laws in relation to anti-corruption.

 

(b)                                 Each of the Covenantors shall at all times ensure that all Group Companies shall maintain valid, and in full force and effect, any and all licenses and permits, except for those the lack of which would not have any Material Adverse Effect on any Covenantor.  Without limiting the generality of the foregoing, each of Youxinpai Auction, Youxin Auction, Lubao WFOE, Fengshun Lubao and Youxinpai Sichuan Auction shall (and the Covenantors shall procure each of Youxinpai Auction, Youxin Auction, Lubao WFOE, Fengshun Lubao and Youxinpai Sichuan Auction to) at all times maintain valid, and in full force and effect, any and all licenses and permits that are necessary for the operation and auction business of it in accordance with the PRC Applicable Laws (including without limitation Approval Certificate on Auction Operation (拍卖经营批准证书)). The Covenantors shall obtain the Approval Certificate on Auction Operation (拍卖经营批准证书) for the Group Company if requested by the Investor.

 

(c)                                  Each of the Covenantors undertakes that he or it shall not, and each of them shall not cause or permit any other Covenantor, or any of its director, officer, shareholder, agent, employee, representative or any other Person associated with or acting for or on behalf of the foregoing to, offer, pay, promise to pay, or authorize the payment of any money, or offer, give, promise to give, or authorize the giving of any gift, to any Government Official, political party or official thereof or any candidate for political office (or to any Person that any of the Covenantors might reasonably expect to deliver such money or gift to a Government Official, political party or official thereof or any candidate for political office) for the purposes as specified in Section 11(c)(I)(i) or Section 11(c)(I)(ii) of Part I of EXHIBIT D.  The Covenantors shall immediately notify the Investor of any action that may constitute a violation of this Section 26 of Part I of EXHIBIT F.  The Covenantors further undertake that it shall and shall cause each of its Subsidiaries and Affiliates to  maintain systems of internal controls, to the Investor’s satisfaction, (including, but not limited to, accounting systems, purchasing systems and billing systems) to ensure compliance with any applicable anti-bribery or anti-corruption law.

 

(d)                                 Each of the Group Companies shall keep all of its financial books and accounting records in accordance with PRC GAAP and the Applicable Laws, 

 

 

and none of the Group Company shall keep any financial books or accounting records for any deceitful purpose that is prohibited by the Applicable Laws.

 

(e)                                  So long as the Investor directly or indirectly owns or holds any interest in any Group Company, neither the Group Companies, nor their respective Subsidiaries, Affiliates or Principals, will become identified as Persons on the Prohibited Lists or have any business relationship with any Restricted Country or with any Person on the Prohibited Lists.  Without prejudice to any rights that the Investor may have under this Agreement, any Transaction Agreement or Applicable Law, in the event this condition is breached, the Covenantors will, and will procure other Covenantors to, immediately take whatever action the Investor deems necessary to redress the breach.

 

(f)                                   The Investor shall have the right, upon request given with reasonable notice, to obtain from any Covenantor information regarding the Group Companies’ sales, marketing, Affiliates, Subsidiaries, principals and investors to the extent as provided under Section 2.1 of the Shareholders Agreement.

 

(g)                                  Each Group Company operating auction business shall, and the other Covenantors shall cause each Group Company operating auction business to, employ auctioneers and auction practitioners in accordance with the requirements of Applicable Laws, and maintain its Approval Certificate for Auction Operation (拍卖经营批准证书) in full force and effect.

 

29.                               Interested Party Transactions.  All transactions entered or to be entered into by any Group Company shall be for the benefit of the Group Companies.  None of Contracts, transactions, activities, interests, acts and things as described in Section 17 of Part I of EXHIBIT D shall be entered into, performed, incurred or committed, unless it is approved pursuant to the Shareholders Agreement and the Restated Articles. Without prejudice to the foregoing, if any Covenantor contemplates to enter into any transaction, activities, Contracts, interest, acts and things as described in Section 17 of Part I of EXHIBIT D, the interested Covenantors and/or the interested director nominated by the Covenantors shall make full disclosure to the meeting of shareholders and/or the Board (as the case may be) with respect to the interested nature of such transaction.

 

30.                               Non-Compete Covenants.  The Founder shall not, and shall procure none of his Affiliate or Associate will, directly or indirectly, either by himself or herself or itself or in conjunction with or through any other Person:

 

(a)                                 during the Relevant Period and for a period of two (2) years after the Relevant Period (collectively “Restriction Period”), participate, assist, advise, consult, be concerned with, engaged or interested in, any business or Person in any manner, which is in competition with the business carried on by any Group Company at any time during the Restriction Period;

 

(b)                                 during the Restriction Period, solicit in any manner any Person who is or has been during the Restriction Period a customer or client of any Group Company for the purpose of offering to such Person any goods or services similar to or competing with any of the businesses conducted by any Group Company at any time during the Restriction Period;

 

 

(c)                                  during the Restriction Period, solicit or entice away, or endeavour to solicit or entice away, any Person who is employed or contracted by or works for any Group Company at any time within six (6) months preceding the date of such solicitation; or

 

(d)                                 at any time disclose to any Person, or use for any purpose (except for the ordinary business of the Group Companies), any information concerning the business, accounts, finance, transactions or Proprietary Assets rights of any Group Company or any trade secrets or confidential information of or relating to any of the Group Companies.

 

Each undertaking in paragraphs (a), (b), (c), and (d) of this Section 28 of Part I of EXHIBIT F shall be treated as independent of the other undertakings so that, if any of them is held to be invalid or unenforceable for any reason, the remaining undertakings shall be valid to the extent that they are not affected.

 

The Founder hereby expressly acknowledges and declares that he has duly considered the undertakings set out in this Section 28 of Part I of EXHIBIT F and considers that they are reasonable in the circumstances and warrants and undertakes to the Investor that he shall not challenge or query the validity and enforceability of these undertakings.

 

For the purposes of this Section 28 of Part I of EXHIBIT F, “Relevant Period” means, in relation to the Founder, the Founder Holding Company or any Affiliate or Associate of the foregoing, the period during which such Founder, the Founder Holding Company or such Affiliate or Associate is a shareholder, director, employee and/or has any direct or indirect interest (legal or beneficial) in the capital of any of the Group Companies.

 

31.                               Equity Transfer.  Unless with the written approval of the Preferred Majority Holders (as defined in the Shareholders Agreement) and notwithstanding other provisions of the Transaction Agreements, before a Qualified IPO (as defined in the Restated Articles), none of the Founder, the Founder Holding Company, nor other holders of Ordinary Shares shall directly or indirectly transfer or dispose of any of his or her or its equity interest in any Group Company or in the Founder Holding Company, nor shall they grant an Encumbrance over such equity interest or enter into any Contract in respect of the votes attached to such equity interest, to any other Person.

 

32.                               Fulfillment of Closing Conditions. Each of the Covenantors shall use its best endeavors to fulfill each of the closing conditions set forth in this Agreement and other Transaction Agreements, including without limitation Section 6.1 hereof.

 

33.                               Registration Rights.  Upon request of the Investor, each Covenantor shall procure any Group Company that plans to have public offering to grant the Investor rights to register with the United States Securities and Exchange Commission up to all securities of such company held by the Investor (including without limitation three (3) demand registration rights and unlimited “piggyback” and unlimited Form S-3 or Form F-3 (or any successor registration form under the Securities Act) registration rights) (to the satisfaction of the Investor) or equivalent or analogous rights with respect to any other offering of any Group Company’s securities in any other jurisdiction in which such Group Company undertakes to publicly offer or list such securities for trading on a recognized securities exchange, as specifically provided in the Shareholders Agreement.

 

 

34.                               Transfer of Proprietary Assets.  Subject to the requirements under Applicable Laws for the operation of PRC Domestic Company and the PRC Subsidiaries, unless otherwise approved by the Investor, the Covenantors shall (a) as soon as practicable after the date of the Closing, transfer such technologies, technical platforms and Proprietary Assets of the PRC Domestic Company and the PRC Subsidiaries, including without limitation the Proprietary Assets listed in Section 8 of the Disclosure Letter, and/or (b) immediately after such Proprietary Assets of the PRC Domestic Company or any PRC Subsidiary being registered, filed with or recorded by any Governmental Authority, transfer such registered Proprietary Assets, to the WFOE as determined by the Investor as necessary for the operation of the WFOE at no consideration, free from any Encumbrance and in accordance with Applicable Laws, to the satisfaction of the Investor.  Unless otherwise approved by the Investor, to the maximum extent permitted by the Applicable Laws, any future Proprietary Assets as necessary for the operation of any Group Company’s WFOE Principal Business shall be owned and held in the WFOE’s name and any future business Contract relating to the WFOE Principal Business shall be entered into by the WFOE.  The WFOE shall be primarily responsible for the research and development of technology related to the Group Companies’ WFOE Principal Business.

 

35.                               Restructuring Documents.  Each Covenantor shall procure (and to the satisfaction of the Investor) that each Restructuring Document is valid and binding, in full force and effect and enforceable in accordance with its terms.  Each of the Covenantors undertakes that to the extent that any of the Restructuring Documents is or becomes unenforceable or invalid, the Covenantors shall make an alternative arrangements so as to maintain the economic interests of the shareholders of the Company, and consolidate the financial results of certain Group Companies (including without limitation, Kaifeng Financing Lease, Boyu Financing Lease, Lubao WFOE, Fengshun Lubao, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Youyuan Beijing, Xinhong Shanghai, Youxin Yishouche, Youxin Ruida Assets and Chebole Beijing) into the Company’s financial statements, and certain other Group Companies (including without limitation Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, the PRC Domestic Company and the PRC Subsidiaries) into the WFOE’s financial statements.

 

36.                               Pledge Registration.  As soon as practicable but no later than three (3) months from the Closing date, the Covenantors shall, and shall also procure XING Zhanming to submit the application of pledge registration as to all of his respective percentage of the equity pledges contemplated under the relevant Restructuring Documents in accordance with all Applicable Laws (including without limitation completing the registrations of such share pledges with the relevant Governmental Authorities) and provide submission records to the Investor.

 

37.                               Equity Compensation.  The Covenantors shall not directly or indirectly issue any Ordinary Share, share option or any other form of equity of any Group Company to officers, directors, employees or consultants, except in accordance with the ESOP or other employee equity compensation plans as approved in accordance with the terms and provisions of the Transaction Agreements.  The Covenantors agree that the number of Ordinary Shares issued and issuable under the ESOP (i.e., 6,500,000 Ordinary Shares immediately following the Closing) shall only be changed in accordance with the terms and provisions of the Transaction Agreements.  The Covenantors shall use their best endeavours to obtain (or cause other relevant Group Companies to obtain) all

 

 

authorizations, consents, orders and approvals of all Governmental Authorities and officials that may be or become necessary to adopt the ESOP in compliance with the PRC Applicable Laws, and will cooperate fully with the Investor in promptly seeking to obtain all such authorizations, consents, orders and approvals.

 

38.                               Filing of Restated Articles.  The Company shall and the other Covenantors shall cause the Company to file the Restated Articles with the Registrar of Companies of the Cayman Islands within five (5) Business Days after the Closing.

 

39.                               Proceedings and Documents.  Originals or certified true copies of all documents and instruments specified under Section 3 of EXHIBIT G shall be delivered to the Investor within fifteen (15) days after the date of the Closing.

 

40.                               Settlement of Indebtedness Resulting from Foreign Exchange Conversion. Upon the Investor’s written request to the Company, each Group Company shall, and the other Covenantors shall cause each Group Company to, settle the indebtedness between such Group Company and any other Person resulting from the arrangements whereby such other Person borrows loans in US$ or other foreign currencies from those Group Companies incorporated outside of the PRC while providing RMB loans to those Group Companies incorporated within the PRC, as soon as practicable but no later than six (6) months prior to the Qualified IPO (as defined in the Restated Articles) or within such longer time period as determined by the Board.

 

41.                               SAFE Registration. The Founder shall, and the Covenantors shall procure any Person deemed as “Domestic Resident” under the Circular No. 37 to, fully comply with all legal requirements (including any filing or registration requirements) with respect to his direct or indirect holding of equity interest of the Founder Holding Company and the Ordinary Shares or other securities in the Company (if any), and with respect to the transaction contemplated hereunder, and with respect to the Restructuring Documents on a continuing basis, including but not limited to registering such shareholding with the SAFE, in a timely manner, as required under the Circular No. 37 if it is applicable, and any other applicable requirements imposed by the PRC Governmental Authorities, and obtaining all necessary consents, approvals, permits and registrations in connection therewith.

 

42.                               The Covenantors shall procure that, to the extent permitted by Applicable Laws, once a foreign-invested enterprise is permitted to operate the profitable value added telecommunication business conducted by the WFOE, the PRC Domestic Company, Fengshun Lubao and Youxin Yishouche and their respective Subsidiaries under Applicable Laws in the PRC and is also able to obtain the relevant necessary license and permits with commercially reasonable efforts in the practice (nationally or locally, as the case may be), the Board of the Company shall discuss the possibility, timing and manner considering the region, business, financial and legal effect on the Group Companies and decide whether to (i) set up one or more direct or indirect wholly-owned subsidiary(ies) in the PRC or use the existing direct or indirect wholly-owned subsidiary(ies) in the PRC to apply for and hold the relevant licenses and permits and operate the appropriate portion of the relevant business, and (ii) transfer the relevant business, assets and personnel to such wholly-owned subsidiary(ies).

 

43.                               Filing as Second-hand Car Operator. As soon as practicable after the Closing,Youxin Shanghai, Fengshun Lubao and its Subsidiaries, Youxin Pengcheng, Yougu Shanghai,

 

 

Youxin Auction, Youxin Pengda shall make commercially reasonable efforts to file with the MOFCOM as a second-hand car operator (二手车经营主体).

 

44.                               Setting Up Branches.  As soon as practicable after the Closing, each of the WFOE, Kaifeng Financing Lease, Yougu Shanghai, Youxin Pengda, the PRC Domestic Company and the PRC Subsidiaries shall register each of its offices, which are providing or will provide the services to its clients and locating at the address other than its registered address, as the branch with the competent AIC in compliance with Applicable Laws.

 

45.                               Operation of Auction Business. The Covenantors shall make commercially reasonable efforts to ensure that the operation of auction business of the Covenantors satisfies the requirements of China Securities Regulatory Commission, SEC or other Governmental Authority for IPO (as defined in the Restated Articles).

 

46.                               Filing of Lease Agreement. As soon as practicable after the Closing, each Group Company shall duly file with the relevant Governmental Authorities pursuant to the Applicable Laws any and all leases it enters into and provide with the Investor the evidence of such filing (to the satisfaction of the Investor).

 

47.                               Ownership of Leased Properties. The Covenantors shall make commercially reasonable efforts to ensure that the ownership of leased properties of the Covenantors satisfies the requirements of China Securities Regulatory Commission, SEC or other Governmental Authority for IPO (as defined in the Restated Articles).

 

48.                               Youfang Beijing as a Cost Center. The Covenantors shall make commercially reasonable efforts to adjust the business line in order to satisfy the requirements of China Securities Regulatory Commission, SEC or other Governmental Authority for IPO (as defined in the Restated Articles).

 

49.                               Fengshun Lubao shall obtain a Permit for Operation of Value-added Telecommunication Services (增值电信业务经营许可证) for its business from Beijing Communications Administration within eight (8) months after Closing.

 

 

Part II

 

COVENANTS OF THE INVESTOR

 

1.                                      No Investment in Direct Competitor.  Notwithstanding anything to the contrary contained herein or contained in other Transaction Agreements, without the prior written consent of the Founder, the Investor shall not, and shall procure its Related Entities not to, on or after the date of this Agreement, make any direct equity investment in any Person (each, a “Direct Competitor”) that owns, operates or Controls the website located at www.cheyipai.com under the trade name of Che Yi Pai (车易拍), or the website located at www.carsing.com.cn under the trade name of Kai Xin (开新), or the website located at www.souche.com under the trade name of Da Sou Che (大搜车), or the website located at www.renrenche.com under the trade name of Ren Ren Che (人人车), or the website located at www.ttpai.cn under the trade name of Tian Tian Pai Che (天天拍车), or the website located at www.guazi.com under the trade name of Gua Zi Er Shou Che (瓜子二手车).  For the purpose of this Section 1 of Part II of EXHIBIT F, “Related Entities” shall mean any investment fund that Controls the Investor and any other investment fund (or a Subsidiary of any such investment fund) currently managed by the same manager of the Investor (or, if the Investor is a Subsidiary of an investment fund, the same manager of the investment fund of which the Investor is a Subsidiary), provided that none of the portfolio companies of any such private equity investment funds shall be deemed as a Related Entity.

 

The obligations in this Section 1 of Part II of Exhibit F shall terminate upon the earlier of (i) the consummation of the listing or trading of any equity securities of such Direct Competitor or its Affiliates on any securities exchange in case of such Direct Competitor, and (ii) when all the other holders of Preferred Shares are fully released from the similar restrictions in relation to non-investment in these Direct Competitors.

 

 

EXHIBIT G

 

CONDITIONS TO THE INVESTOR’S OBLIGATIONS AT CLOSING

 

1.                                      Representations and Warranties. The representations and warranties made by the Covenantors and the Founder in Part I and Part II of EXHIBIT D hereof shall be true and correct and complete in all respects, as of the date hereof and as of the date of the Closing, with the same force and effect as if they were made on and as of such date.

 

2.                                      Performance of Obligations.  Each of the Covenantors shall have performed and complied with all agreements, obligations and conditions contained in the Transaction Agreements that are required to be performed or complied with by it on or before the Closing.  The Company shall have delivered each of the items that are required to be delivered by it under Section 3 of this Agreement.

 

3.                                      Proceedings and Documents.  All corporate and other proceedings on the part of the Company, UcarShow HK and Yougu Shanghai in connection with the transactions contemplated under this Agreement and other Transaction Agreements and all documents and instruments incident to such transactions shall be completed and satisfactory in substance and form to the Investor, and the Investor shall have received all such copies of such documents as it may reasonably request.

 

4.                                      No Material Adverse Effect.  Since the date of the Financial Statements, no Group Company has suffered a Material Adverse Effect.

 

5.                                      Compliance Certificate.  Each of the Covenantors shall deliver to the Investor a certificate, dated the date of the Closing, signed by the chief executive officer or director of each of the Founder Holding Company, the Company, UcarEase BVI, Uxin Used Car Cayman, Perfect Harmony, Uxin HK, GloryFin HK, UcarShow HK, Fairlubo, Fairlubo HK, UcarBuy BVI, UcarBuy HK, Xin Limited and Xin HK, the legal representative of each of the WFOE, Lubao WFOE, Fengshun Lubao, Shanghai Lubao, Tianjin Lubao, Kaifeng Financing Lease, Boyu Financing Lease, Youxin Pengda, Youhan Shanghai, Youxin Auction, Youxin Automobile, Yougu Shanghai, Youxuan Beijing, Youzhen Beijing, Youfang Beijing, Youxin Shuxiang, Youxin Shanghai, Xinhong Shanghai, Youxin Yishouche, Chebole Beijing, the PRC Domestic Company and the PRC Subsidiaries, and the Founder, certifying that closing conditions set forth in this EXHIBIT G have been fulfilled.

 

6.                                      Approvals, Consents and Waivers. The Company, and Yougu Shanghai shall have obtained all approvals, consents and waivers necessary for consummation of the transactions contemplated by this Agreement and the Transaction Agreements which shall remain effective as of the date of the Closing, including, but not limited to, (a) all permits, authorizations, approvals or consents of, notice to or registration with any Governmental Authority or regulatory body or other Person in relation to transactions contemplated under or as required by this Agreement and the Transaction Agreements (including, but not limited to, the Restructuring Documents), and (b) the waiver by all shareholders of the Company and Yougu Shanghai of any anti-dilution rights, rights of first refusal, preemptive rights and all similar rights in connection with the issuance of the Subscribed Shares at the Closing.

 

 

7.                                      No Order.  No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Applicable Law that has the effect of making any of the transactions contemplated by this Agreement and other Transaction Agreements (including but not limited to the Restructuring Documents) illegal or otherwise restraining or prohibiting any of the items above mentioned.

 

8.                                      Securities Exemptions. The offer and sale of the Subscribed Shares to the Investor pursuant to this Agreement shall be exempt from the registration and/or qualification requirements of all applicable securities laws.

 

9.                                      Restated Articles Effective. The Restated Articles shall have been duly adopted by the Company by all necessary corporate action of its Board and its shareholders and shall have become and remain effective under the Applicable Laws of the Cayman Islands.  Constitutional Documents of each other Group Company shall also be amended to the satisfaction of the Investor and shall have been duly adopted by such Group Company by all necessary corporate action of its board of directors and its shareholders and duly filed with the relevant Governmental Authorities.

 

10.                               Execution of Transaction Agreements.  The Transaction Agreements shall be in form and substance reasonably satisfactory to the Investor and each party (other than the Investor) to the Transaction Agreements shall have duly executed and delivered to the Investor each of the Transaction Agreements to the satisfaction of the Investor.

 

11.                               No Contravention.  No party is in violation, breach or default of any term or provision of the Restructuring Documents and other Transaction Agreements.

 

12.                               Financial Statements and Forecasts.  The Company shall have delivered to the Investor the Financial Statements and one-year financial forecast for the financial year of 2017 for the Group Companies, all in form and substance satisfactory to the Investor.

 

13.                               No Dividend.  From the date of Financial Statements until the Closing, no dividend or other distributions has been paid or declared directly or indirectly to the Founder or any other shareholder of any Group Company, unless with the prior written approval of the Investor.

 

14.                               Operational Data.  The Company shall have delivered to the Investor, in form and substance satisfactory to the Investor, operational data of the Group Companies, including without limitation cars up for auction online, cars sold online, online commission rate, online seller rebates, online buyer subsidies, online unique buyers, online unique sellers; cars up for auction offline, cars sold offline, offline commission rate, offline seller subsidies, offline buyer subsidies, offline unique buyers, offline unique sellers etc.

 

15.                               Shareholders’ Agreements in respect of the Company. The Shareholders Agreement shall be in form and substance reasonably satisfactory to the Investor and shall have been entered into by each party thereto (other than the Investor).

 

16.                               Due Diligence. The Investor shall have completed its business, legal, financial due diligence investigation of the Group Companies to its reasonable satisfaction.

 

 

EXHIBIT H

 

CONDITIONS TO COMPANY’S OBLIGATIONS AT CLOSING

 

1.                                      Representations and Warranties.  The representations and warranties of the Investor contained in EXHIBIT E hereof shall be true and correct as of the date hereof and as of the date of the Closing.

 

2.                                      Securities Exemptions.  The offer and sale of the Series G+ Preferred Shares to the Investor pursuant to this Agreement shall be exempt from the registration and/or qualification requirements of all applicable securities laws.

 

3.                                      Transaction Agreements.  The Investor shall have duly executed and delivered to the Company each of the Transaction Agreements to which it is a party.

 

4.                                      Payment of the Series G+ Subscription Price.  The Investor shall have duly paid the Series G+ Subscription Price according to Section 2.4 hereunder.

 

 

EXHIBIT I

 

DISCLOSURE LETTERExhibit 10.46

 

FAIRLUBO AUCTION COMPANY LIMITED

 

THIRD AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT

 

May 27, 2017

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS
    	
2
    
	
 
    	
 
    	
 
    
	
2.
    	
INFORMATION   RIGHTS, INSPECTION RIGHTS AND BOARD REPRESENTATION
    	
9
    
	
 
    	
 
    	
 
    
	
 
    	
2.1
    	
Information Rights and   Inspection Rights
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.2
    	
Board of Directors
    	
10
    
	
 
    	
 
    	
 
    
	
3.
    	
REGISTRATION RIGHTS
    	
12
    
	
 
    	
 
    	
 
    
	
 
    	
3.1
    	
Applicability of Rights
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.2
    	
Definitions
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.3
    	
Demand Registration
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.4
    	
Piggyback Registrations
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.5
    	
Form F-3 or   Form S-3 Registration
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.6
    	
Expenses
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.7
    	
Obligations of the   Company
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.8
    	
Furnish Information
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.9
    	
Indemnification
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.10
    	
Termination of the   Company’s Obligations
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.11
    	
No Registration Rights   to Third Parties
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.12
    	
Assignment of   Registration Rights
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.13
    	
Market Stand-Off
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.14
    	
Rule 144 Reporting
    	
23
    
	
 
    	
 
    	
 
    
	
4.
    	
RIGHT OF PARTICIPATION
    	
24
    
	
 
    	
 
    	
 
    
	
 
    	
4.1
    	
Pro Rata Share
    	
24
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.2
    	
New Securities
    	
24
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.3
    	
Procedures
    	
25
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.4
    	
Failure to Exercise
    	
26
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.5
    	
Termination
    	
26
    
	
 
    	
 
    	
 
    
	
5.
    	
TRANSFER RESTRICTIONS
    	
27
    
	
 
    	
 
    	
 
    
	
 
    	
5.1
    	
Co-Sale Right with   respect to the Transfer by Perfect Harmony
    	
27
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.2
    	
Term
    	
28
    

 

1

 

	
 
    	
5.3
    	
Accession to this   Agreement
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.4
    	
Transfer by the   Investors
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
DRAG-ALONG
    	
28
    
	
 
    	
 
    	
 
    
	
7.
    	
PROTECTIVE PROVISIONS   AND PREFERENCE OF PREFERRED SHARES
    	
30
    
	
 
    	
 
    	
 
    
	
 
    	
7.1
    	
Matters Requiring   Consent of Preferred Shares
    	
30
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
7.2
    	
Dividends
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
7.3
    	
Liquidation Preference
    	
34
    
	
 
    	
 
    	
 
    
	
8.
    	
CONFIDENTIALITY AND NON   DISCLOSURE
    	
35
    
	
 
    	
 
    	
 
    
	
 
    	
8.1
    	
Disclosure of Terms
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.2
    	
Press Release
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.3
    	
Permitted Disclosures
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.4
    	
Legally Compelled   Disclosure
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.5
    	
Other Exceptions
    	
36
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.6
    	
Other Information
    	
36
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.7
    	
Survival
    	
36
    
	
 
    	
 
    	
 
    
	
9.
    	
ASSIGNMENT AND   AMENDMENT
    	
36
    
	
 
    	
 
    	
 
    
	
 
    	
9.1
    	
Assignment
    	
36
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.2
    	
Amendment of Rights
    	
37
    
	
 
    	
 
    	
 
    
	
10.
    	
OTHER UNDERTAKINGS OF   PARTIES
    	
37
    
	
 
    	
 
    	
 
    
	
 
    	
10.1
    	
Non-Competition
    	
37
    
	
 
    	
 
    	
 
    
	
 
    	
10.2
    	
Tax Matters
    	
38
    
	
 
    	
 
    	
 
    
	
 
    	
10.3
    	
Control of Subsidiaries
    	
39
    
	
 
    	
 
    	
 
    
	
 
    	
10.4
    	
Control Documents
    	
40
    
	
 
    	
 
    	
 
    
	
 
    	
10.5
    	
Compliance with Law
    	
42
    
	
 
    	
 
    	
 
    
	
 
    	
10.6
    	
Management Personnel   and Key Employees
    	
42
    
	
 
    	
 
    	
 
    
	
 
    	
10.7
    	
Agreements among the   Investors
    	
42
    
	
 
    	
 
    	
 
    
	
11.
    	
GENERAL PROVISIONS
    	
43
    
	
 
    	
 
    	
 
    
	
 
    	
11.1
    	
Notices
    	
43
    
	
 
    	
 
    	
 
    
	
 
    	
11.2 
    	
Entire Agreement
    	
44
    
	
 
    	
 
    	
 
    
	
 
    	
11.3 
    	
Governing Law
    	
44
    
	
 
    	
 
    	
 
    
	
 
    	
11.4
    	
Severability
    	
44
    

 

2

 

	
 
    	
11.5
    	
Third Parties
    	
44
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.6
    	
Successors and Assigns
    	
44
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.7
    	
Interpretation;   Captions
    	
45
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.8
    	
Counterparts
    	
45
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.9
    	
Adjustments for Share   Splits, Etc.
    	
45
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.10
    	
Aggregation of Shares
    	
45
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.11
    	
Shareholders’ Agreement   to Control
    	
45
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.12
    	
Dispute Resolution
    	
45
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.13
    	
Limitations on   Subsequent Rights
    	
46
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.14
    	
Replacement
    	
46
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.15
    	
Several Obligations of   Parties
    	
46
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
EXHIBITS
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Schedule of Notice

 

Exhibit A: Particulars of Investors

 

–            Part I:   Particulars of Series A Investor

 

–            Part II:   Particulars of Series Al Investor

 

–            Part III:   Particulars of Series B Investors
    	
 
    

 

3

 

THIS THIRD AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT (this “Agreement”) is made and entered into as of May 27, 2017 by and among:

 

(1)           Fairlubo Auction Company Limited, an exempted company duly incorporated and validly existing under the Laws of the Cayman Islands with its registered address at the offices of Offshore Incorporations (Cayman) Limited, Floor 4, Willow House, Cricket Square, P O Box 2804, Grand Cayman KY1-1112, Cayman Islands (the “Company”);

 

(2)           Fairlubo Auction HK Company Limited, a company duly incorporated and validly existing under the Laws of Hong Kong with its registered address at Rm. 1501 Grand Millennium Plaza (Lower Block), 181 Queen’s Road Central, Hong Kong (the “HK Company”);

 

(3)           Beijing Youxin Fengshun Lubao Vehicle Auction Co., Ltd. (北京优信丰顺路宝机动车拍卖有限公司), a wholly foreign owned company duly incorporated and validly existing under the Laws of the PRC with its registered address at Room 1632, #1-16, Building 1, No. A6, Jianguomenwai Street, Chaoyang District, Beijing (北京市朝阳区建国门外大街甲6号1 幢16 层A 座1-16 内 1632) (the “WFOE”);

 

(4)           Beijing Fengshun Lubao Vehicle Auction Co., Ltd. (北京丰顺路宝机动车拍卖有限公司), a limited liability company duly incorporated and validly existing under the Laws of the PRC with its registered address at Room 1416, 14th Floor, Fengkai Wangyuan Technology Incubation Center (Wangyuan Tower), # 56 West Fourth Ring South Road, Fengtai District, Beijing (北京市丰台区西四环南路56 号丰开望园科技孵化中心(望园大厦)14 层1416 房间) (the “PRC Domestic Company”);

 

(5)           Tianjin Fengshun Lubao Vehicle Information Consulting Services Co., Ltd. (天津丰顺路宝机动车信息咨询服务有限公司), a limited liability company duly incorporated and validly existing under the Laws of the PRC with its registered address at Room 1-208, #136 Weiguo Road, Hedong District, Tianjin (天津市河东区卫国道136 号1-208) (the “Tianjin Subsidiary”);

 

(6)           Shanghai Fengshun Lubao Vehicle Auction Co., Ltd. (上海丰顺路宝机动车拍卖有限公司), a limited liability company duly incorporated and validly existing under the Laws of the PRC with its registered address at Room 312, #569 Anchi Road, Anting Town, Jiading District, Shanghai (上海市嘉定区安亭镇安驰路569 号312 室) (the “Shanghai Subsidiary”);

 

(7)           The Person listed in Part I of Exhibit A (the “Series A Investor”);

 

(8)           The Person listed in Part II of Exhibit A (the “Series Al Investor”); and

 

(9)           The Persons listed in Part III of Exhibit A (collectively the “Series B Investors” and each a “Series B Investor”).

 

1

 

Each of the Series A Investor, the Series Al Investor, the Series B Investors and any and all other persons and entities holding any shares of the Company from time to time shall be hereinafter referred to as a “Shareholder” and collectively, the “Shareholders.”

 

Capitalized terms used in this Agreement shall have the meanings ascribed to them in Section 1.

 

RECITALS

 

A.            On May 27, 2017, certain Shares Purchase Agreement was entered into by and among Fairlubo Corporate Limited„ PERFECT HARMONY and certain other parties named therein, pursuant to which Fairlubo Corporate Limited agreed to transfer and sell to PERFECT HARMONY a total of 70,000,000 Ordinary Shares (as defined below).

 

B.            On January 12, 2016, the Company, the Series A Investor, the Series Al Investor, the HK Company, the PRC Domestic Company, the WFOE, the Tianjin Subsidiary, the Shanghai Subsidiary and certain other parties named therein entered into the Secnond Amended and Restated Shareholders’ Agreement (the “Prior Shareholders Agreement).

 

C.            The Parties intends to enter into this Agreement to reflect the above share transfer.

 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

AGREEMENT

 

1.             DEFINITIONS

 

For purposes of this Agreement, the following terms shall have the following meanings:

 

“Additional Number” has the meaning set forth in Section 4.3(b).

 

“Affiliate” means (a) with respect to a Person, any other Person that, directly or indirectly, Controls, is Controlled by or is under common Control with such Person; and (b) in the case of an individual, shall include his/her spouse, children, siblings, parents, grandchild, grandparent, and other immediate family members (connected by birth, adoption, or marriage), trustee of any trust in which any aforesaid individual is a beneficiary or a discretionary object, or any Person Controlled by any of the aforesaid individuals. In the case of an Investor, the term “Affiliate” also includes (v) any shareholder of such Investor, (w) any of such shareholder’s or Investor’s general partners or limited partners, (x) the fund manager managing or advising such shareholder or Investor (and general partners, limited partners and officers thereof) and other funds managed or advised by such fund manager, and (y) trusts Controlled by or for the benefit of any such Person referred to in (v), (w) or (x), and (z) any fund or holding company formed for investment purposes that is promoted, sponsored, managed, advised or serviced by such Investor. For the avoidance of doubt, an Investor shall not be deemed to be an Affiliate of any Group Company.

 

“Agreement” has the meaning set forth in the preamble.

 

2

 

“Amended M & AA” means the Fourth Amended and Restated Memorandum and Articles of Association of the Company as amended from time to time by Special Resolutions (as defined in the Amended M&AA).

 

“Applicable Price” has the meaning set forth in Section 10.7.

 

“As Adjusted” means as appropriately adjusted for any subsequent bonus issue, share split, consolidation, subdivision, reclassification, recapitalization or similar arrangement.

 

“Board” means the board of directors of the Company.

 

“Business” means the auction of Residual Second Hand Vehicles and other vehicles.

 

“Business Days” means any day that is not a Saturday, Sunday, legal holiday or other day on which commercial banks are required or authorized by law to be closed in the PRC, the Cayman Islands, or Hong Kong.

 

“CFC” has the meaning set forth in Section 10.2(a).

 

“Circular 37” means the Circular 37, issued by SAFE on July 4, 2014, titled “Notice Regarding Certain Administrative Measures on Offshore Financing and Round-trip Investments by PRC Residents Through Special Purpose Vehicles,” effective as of July 4, 2014, and any implementation or successor rule or regulation under the PRC law.

 

“Closing” has the meaning given to this term in the Series B Purchase Agreement.

 

“Code” has the meaning set forth in Section 10.2(a).

 

“Company” has the meaning set forth in the preamble.

 

“Confidential Information” has the meaning set forth in Section 8.1.

 

“Control” of a given Person means the power or authority, whether exercised or not, to direct the business, management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, which power or authority shall conclusively be presumed to exist upon possession of beneficial ownership or power to direct the vote of more than fifty percent (50%) of the votes entitled to be cast at a meeting of the members or shareholders of such Person or power to control the composition of more than fifty percent (50%) of the board of directors of such Person; the term “Controlled” has the meaning correlative to the foregoing.

 

“Control Documents” means the Control Documents as  defined in the Series B Purchase Agreement or, upon execution of the Amended Control Documents as  defined in the Series B Purchase Agreement, the Amended Control Documents.

 

“Conversion Shares” means the Ordinary Shares issued or issuable pursuant to conversion of the Preferred Shares.

 

3

 

“Disclosing Party” has the meaning set forth in Section 8.4.

 

“Equity Securities” means, with respect to a Person, any shares, share capital, registered capital, ownership interest, equity interest, or other securities of such Person, and any option, warrant, call, notes, or right to subscribe for, acquire or purchase any of the foregoing, or any other security or instrument convertible into or exercisable or exchangeable for any of the foregoing, or any equity appreciation, phantom equity, equity plans or similar rights with respect to such Person, or any Contract of any kind for the purchase or acquisition from such Person of any of the foregoing, either directly or indirectly.

 

“Fengshion Capital” means Fengshion Capital Investment Fund, LP, a limited liability partnership duly incorporated and validly existing under the Laws of Cayman Islands, being a Series B Investor under this Agreement.

 

“Fengshion Capital Director” has the meaning set forth in Section 2.2.

 

“Fengshion Nominee” has the meaning given to this term in the Series B Purchase Agreement.

 

“Financing Terms” has the meaning set forth in Section 8.1.

 

“First Participation Notice”  has  the meaning set forth in Section 4.3(a).

 

“Fully Participating Investor” has the meaning set forth in Section 4.3(b).

 

“Group” or “Group Companies” means the Company and its Subsidiaries (including without limitation the HK Company and the PRC Companies), and “Group Company” means any of them.

 

“Governmental Authority” means any nation or government or any province or state or any other political subdivision thereof, or any entity, authority or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any government authority, agency, department, board, commission or instrumentality or any political subdivision thereof, any court, tribunal or arbitrator, and any self-regulatory organization.

 

“HK Company”  has  the meaning set forth in the preamble.

 

“Hong Kong” means the Hong Kong Special Administrative Region of the PRC.

 

“IFRS” means the International Financial Reporting Standards promulgated by the International Accounting Standards Board (IASB) (which includes standards and interpretations approved by the IASB and International Accounting Principles issued under previous constitutions), together with its pronouncements thereon from time to time, and applied on a consistent basis.

 

“Information Rights” has the meaning set forth in Section 2.1 (a)(vii).

 

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“Initiating Holders” has the meaning set forth in Section 3.3(b).

 

“Inspection Rights” has the meaning set forth in Section 2.1(b).

 

“Investors” means the Series A Investor, the Series Al Investor and the Series B Investors, and “Investor” means any of them.

 

“Investor Directors” means the Perfect Harmony Directors and the Fengshion Capital Director, and “Investor Director” means any of them.

 

“IPO” means the first firm-commitment underwritten initial public offering by the Company of its Ordinary Shares pursuant to a registration statement that is filed with and declared effective by either the SEC under the Securities Act or another Governmental Authority for a Registration in a jurisdiction other than the United States.

 

“Junior Securities” means with respect to any Share, all equity securities of the Company rank junior to such Share with respect to dividends or distribution upon liquidation or redemption, as  applicable. For example, (1) in case of Series B Preferred Shares, Junior Securities shall include the Series A Preferred Shares, the Series Al Preferred Shares, the Ordinary Shares and other securities of the Company, and (2) in case of the Series A Preferred Shares and the Series Al Preferred Shares, Junior Securities shall include the Ordinary Shares and other securities of the Company (other than Series B Preferred Shares).

 

“Law” or “Laws” means any constitutional provision, statute or other law, rule, regulation, official policy or interpretation of any Governmental Authority and any Governmental Order.

 

“LC” means collectively LC Fund V, L.P. and LC Parallel Fund V, L.P., each being a Series B Investor under this Agreement.

 

“Governmental Order” means any applicable order, ruling, decision, verdict, decree, writ, subpoena, mandate, precept, command, directive, consent, approval, award, judgment, injunction or other similar determination or finding by, before or under the supervision of any Governmental Authority.

 

“Liquidation Event” has the meaning set forth in Section 7.3(b).

 

“New Securities” has the meaning set forth in Section 4.2.

 

“Ordinary Shares” means the ordinary shares of the Company with par value of US$0.0001 per share.

 

“Original Series A Issue Price” means a price of US$0.279140 per Series A Preferred Share.

 

“Original Series Al Issue Price” means a price of US$0.075 per Series Al Preferred Share.

 

“Original Series B Issue Price” means a price of US$0.17 per Series B Preferred Share.

 

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“Overallotment New Securities” has the meaning set forth in Section 4.3(b).

 

“Oversubscribing Fully Participating Investor” has the meaning set forth in Section 4.3(b).

 

“Participation Rights Holders” has the meaning set forth in Section 4.

 

“Perfect Harmony” means Perfect Harmony Group Limited, a BVI business company established under the Laws of the British Virgin Islands, being the Series A Investor, the Series Al Investor and a Series B Investor under this Agreement.

 

“Perfect Harmony Directors” has the meaning set forth in Section 2.2.

 

“Perfect Harmony Parent” has the meaning set forth in Section 10.7.

 

“Perfect Harmony Offered Shares” has the meaning set forth in Section 5.1.

 

“Perfect Harmony Transfer Notice” has the meaning set forth in Section 5.1.

 

“Person” means any individual, sole proprietorship, partnership, limited partnership, limited liability company, firm, joint venture, estate, trust, unincorporated organization, association, corporation, institution, public benefit corporation, entity or governmental or regulatory authority or other enterprise or entity of any kind or nature.

 

“PFIC” has the meaning set forth in Section 10.2(b).

 

“PRC” or “China” means the People’s Republic of China but solely for the purposes of this Agreement and other Transaction Documents excluding Hong Kong, the Macau Special Administrative Region and Taiwan.

 

“PRC Companies” means the WFOE, the PRC Domestic Company, the Tianjin Subsidiary, the Shanghai Subsidiary and any other Subsidiaries to be set up by any Group Company in China from time to time; and “PRC Company” means any of them.

 

“PRC Domestic Company” has the meaning set forth in the preamble.

 

“PRC GAAP” means the generally accepted accounting principles in the PRC in effect from time to time.

 

“Preferred Majority” means the holder(s) of at least fifty-one percent (51%) of the issued and outstanding Preferred Shares calculated on an as-converted basis.

 

“Preferred Supermajority” means the holder(s) of at least seventy-five percent (75%) of the issued and outstanding Preferred Shares calculated on an as-converted basis.

 

“Prior Shareholders Agreement” has the meaning set forth in the recitals.

 

“Preferred Shares” means collectively, the Series A Preferred Shares, the Series Al Preferred Shares and the Series B Preferred Shares, and a “Preferred Share” means any of them.

 

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“Qualified IPO” has the meaning given to such term in the Amended M &AA.

 

“Request Notice” has the meaning set forth in Section 3.3(a).

 

“Residual Second Hand Vehicles” means the second hand vehicles that are materially deteriorated and become immovable.

 

“Right of Participation” has the meaning set forth in Section 4.

 

“SAFE” means the State Administration of Foreign Exchange of the PRC, including its local counterparts.

 

“Second Participation Notice” has the meaning set forth in Section 4.3(b).

 

“Second Participation Period” has the meaning set forth in Section 4.3(b).

 

“Securities Act” means the U.S. Securities Act of 1933, as amended and interpreted from time to time.

 

“Series Al Closing” means the closing of the purchase and sale of Series Al Preferred Shares as contemplated under the Series Al Purchase Agreement.

 

“Series A Investor” has the meaning set forth in the preamble.

 

“Series A1 Investor” has the meaning set forth in the preamble.

 

“Series B Investors” has the meaning set forth in the preamble.

 

“Series A Preferred Shares” means the series A preferred shares of the Company, par value US$0.0001 per share, having the rights and privileges in this Agreement and the Amended M&AA.

 

“Series Al Preferred Shares” means the series Al preferred shares of the Company, par value US$0.0001 per share, having the rights and privileges in this Agreement and the Amended M&AA.

 

“Series B Preferred Shares” means the series B preferred shares of the Company, par value US$0.0001 per share, having the rights and privileges in this Agreement and the Amended M&AA.

 

“Series A Purchase Agreement” means certain Series A Preferred Shares Purchase Agreement entered into by and among the Series A Investor, the Company, the HK Company, the PRC Domestic Company, the WFOE, the Tianjin Subsidiary, the Shanghai Subsidiary, and certain other parties named therein on April 18, 2015, pursuant to which the Company issued to the Series A Investor 30,000,000 Series A Preferred Shares.

 

“Series Al Purchase Agreement” means certain Series Al Preferred Shares Purchase Agreement entered into by and among the Series Al Investor, the Company, the HK Company,

 

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the PRC Domestic Company, the WFOE, the Tianjin Subsidiary, the Shanghai Subsidiary, and certain other parties named therein on August 3, 2015, pursuant to which the Company issued to the Series Al Investor 133,333,333 Series Al Preferred Shares.

 

“Series B Closing Date” means January 21, 2016.

 

“Series B Purchase Agreement” means certain Series B Preferred Shares Purchase Agreement dated as of January 12, 2016 entered into by and among the Series B Investor, the Company, the HK Company, the PRC Domestic Company, the WFOE, the Tianjin Subsidiary, the Shanghai Subsidiary and certain other parties named therein, pursuant to which the Company issued to the Series B Investor 145,833,333 Series B Preferred Shares .

 

“Share” means the Ordinary Shares, the Series A Preferred Shares, the Series Al Preferred Shares, the Series B Preferred Shares and shares of any other class or series in the share capital of the Company, and “Share” means any of them.

 

“Shareholder” or “Shareholders” has the meaning set forth in the preamble.

 

“Special Co-Sale Notice” has the meaning set forth in Section 5.1.

 

“Subsidiary” means, with respect to a specific entity, (i) any entity (x) more than fifty percent (50%) of whose shares or other interests entitled to vote in the election of directors or (y) more than a fifty percent (50%) of whose interests in the profits or capital of such entity are owned or controlled directly or indirectly by the subject entity or through one (1) or more Subsidiaries of the subject entity; (ii) any entity whose assets, or portions thereof, are consolidated with the net earnings of the subject entity and are recorded on the books of the subject entity for financial reporting purposes in accordance with U.S. GAAP or IFRS; or (iii) any entity with respect to which the subject entity has the power to otherwise direct the business and policies of that entity directly or indirectly through another subsidiary. For the avoidance of doubt, the Subsidiaries of the Company shall include the HK Company, the PRC Companies and any other Subsidiary to be established by any of them from time to time.

 

“Target Shares” has the meaning set forth in Section 5.1.

 

“Trade Sale” means (i) a merger, amalgamation, consolidation or other business combination of any Group Company with or into any Person, or any other transaction or series of transactions, as a result of which the Shareholders of the Company immediately prior to such transaction or series of transactions will cease to beneficially own a majority of the voting power of the surviving entity immediately after consummation of such transaction or series of transactions, (ii) the sale, lease, transfer, exclusive license to a third party or other disposition of all or substantially all of the assets of the Group Companies taken as a whole (including the equity securities and/or contractual arrangements by which any Group Company owns and/or Controls any other Group Company, the licenses and permits necessary to conduct the business of the Group Companies in the PRC and the intellectual property assets of the Group Companies taken as a whole) or (iii) the sale (whether by merger, reorganization or other transaction) of a majority of the issued and outstanding share capital of the Company or a majority of the voting power of the Company.

 

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“Transaction Documents” means this Agreement, the Series B Purchase Agreement, the Amended M &AA, the Management Rights Letter (as defined in the Series B Purchase Agreement), the Director Indemnification Agreement (as defined in the Series B Purchase Agreement), the Control Documents, the exhibits and the schedules attached to any of the foregoing and each of the agreements and other documents otherwise required in connection with implementing the transactions contemplated by any of the foregoing.

 

“Transfer Percentage” has the meaning set forth in Section 5.1.

 

“U.S. GAAP” means the generally accepted accounting principles in the United States of America in effect from time to time.

 

“Uxin WFOE” has the meaning given to this term in the Series B Purchase Agreement.

 

“Vacant Investor Director” has the meaning set forth in Section 2.2(a)(ii).

 

“Violation” has the meaning set forth in Section 3.9(a).

 

“WFOE” has the meaning set forth in the preamble.

 

2.             INFORMATION RIGHTS, INSPECTION RIGHTS AND BOARD REPRESENTATION

 

2.1          Information Rights and Inspection Rights

 

(a)     Information Rights

 

The Company covenants and agrees that, commencing on the date of this Agreement, so long as an Investor holds any Preferred Share or Conversion Share, the Company will deliver to such Investor:

 

(i)            within ninety (90) days after the end of each fiscal year, audited annual consolidated financial statements of the Group Companies for such fiscal year, audited by an accounting firm approved pursuant to Section 7 hereof in accordance with PRC GAAP;

 

(ii)           within forty-five (45) days after the end of each of the first, second and third calendar quarter, unaudited quarterly consolidated financial statements of the Group Companies;

 

(iii)          within thirty (30) days after the end of each month, unaudited monthly consolidated financial statements of the Group Companies, accompanied by an up-to-date capitalization table of the Company (containing information of each Shareholder and the type of equity securities of the Company);

 

(iv)          no later than thirty (30) days before each fiscal year, an annual consolidated budget of the Group Companies for the such fiscal year;

 

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(v)             disclosure of major projects and interested party transactions of the Group Companies, within ten (10) days after the end of each calendar month, or such other periodic operating metrics of the Group Companies as reasonably requested by such Investor;

 

(vi)            (x) prompt written notice of any material litigation, material judgment against any of the Group Companies, and any other event that may have a material adverse effect on the operations and financial condition of any of the Group Companies, and (y) prompt written notice of any notice from any Governmental Authority of the material non-compliance with any Laws by any of the Group Companies;

 

(vii)           any information delivered by the Group Companies to any of the Company’s Shareholder(s) other than such Investor (if any); and

 

(viii)          upon the written request by an Investor, such other information of the Group Companies as such Investor shall reasonably request (the rights to have access to the information set out in (i) to (viii) collectively, the “Information Rights”).

 

All the financial statements to be provided to the Investors pursuant to this Section 2.1 shall be prepared in conformance with PRC GAAP and shall consolidate all of the financial results of the Group Companies. All the information (including without limitation the financial statements) provided by the Company to the Investors pursuant to this Section 2.1 shall be verified and certified as true, correct and not misleading by the Chief Executive Officer and the Chief Financial Officer of the Company.

 

(b)   Inspection Rights

 

Each of the Group Companies covenants and agrees that, commencing on the date of this Agreement, so long as an Investor holds any Preferred Share or Conversion Share, such Investor and Persons appointed by such Investor shall have the right to (i) visit and inspect the facilities and properties of each of the Group Companies, and examine and copy records and books of each of the Group Companies at any time during regular working hours upon reasonable prior notice to the relevant Group Company, and (ii) discuss the business, operations and conditions of the Group Companies with their respective directors, officers, employees, accountants and legal counsel (the “Inspection Rights”).

 

(c)   Termination of Rights

 

The Information Rights and Inspection Rights shall terminate upon consummation of a Qualified IPO.

 

2.2          Board of Directors

 

(a)     Number of Directors

 

(i)            The Company’s Amended M & AA shall provide that the Board consists of up to five (5) members, and the maximum number of directors shall not be changed except pursuant to an ordinary resolution of the shareholders in accordance with this Agreement and the Amended M&AA. Perfect Harmony shall have the right to appoint three (3) directors (the

 

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“Perfect Harmony Directors”, each a “Perfect Harmony Director”) and may in like manner remove with or without cause any Perfect Harmony Director so appointed and may in like manner appoint another person in his stead. Fengshion Capital may appoint one (1) director (the “Fengshion Capital Director”) and may in like manner remove with or without cause the Fengshion Capital Director so appointed and may in like manner appoint another person in his stead. The holders of a majority of the Ordinary Shares, voting as a separate class, may appoint one (1) director (the “Ordinary Director”) and may in like manner remove with or without cause the Ordinary Director so appointed and may in like manner appoint another person in his stead. Kun DAI , as long as he is a director of the Company, shall be the chairman of the Board, having the right and obligation as set forth in the Amended M &AA.

 

(ii)        As long as Perfect Harmony has not appointed all of the Perfect Harmony Directors to the Board of the Company and the board of directors of the HK Company in accordance with this Section, then (A) with respect to each Perfect Harmony Director whose seat is vacant (the “Vacant Investor Director”), the existing Perfect Harmony Director (Kun DAI) shall be entitled to, and have the right to exercise, all the vote(s) that each such Vacant Investor Director shall have if he/she had been appointed to the Company and the HK Company, for all matters that are submitted for approval by, and in all meetings of, the Board of the Company and board of directors of the HK Company. In particular, in case of one (1) Vacant Investor Director, the existing Perfect Harmony Director (Kun DAI) shall be entitled to two (2) votes, and in case of two (2) Vacant Investor Directors, the existing Perfect Harmony Director (Kun DAI) shall be entitled to three (3) votes, for all matters that are submitted for approval by, and in all meetings of, the Board of the Company and board of directors of the HK Company; and (B) if at any time after the Series B Closing Date, Perfect Harmony notifies the Company and the HK Company in writing that it will appoint one or two Perfect Harmony Director(s) to the Board of the Company and the board of directors of the HK Company, each of the Company and the HK Company shall take all necessary corporate action to give effect to the appointment of such Perfect Harmony Director(s) and shall provide to Perfect Harmony with a copy of the updated register of directors of each of the Company and the HK Company, certified by the Chief Executive Officer of the Company as true and complete, which reflect the appointment of such Perfect Harmony Director(s), within ten (10) Business Days after Perfect Harmony’s written notice. Upon the appointment of a Perfect Harmony Director (other than Kun DAI) by Perfect Harmony, such Perfect Harmony Director shall have one (1) vote and Kun DAI shall cease to be entitled to the one vote that such Perfect Harmony Director is entitled to on the Board of the Company and the board of directors of the HK Company. Upon vacancy of a Perfect Harmony Director (other than Kun DA I) on the Board of the Company and/or the HK Company occurring because of the death, resignation or removal, the voting arrangements described in this Section 2.2(a)(ii) shall apply again.

 

(b)     Subsidiary Boards

 

The board of directors of each Subsidiary of the Company (each, a “Subsidiary Board”) shall have the same number of directors as the Board of the Company. Each Investor shall be entitled to nominate and designate the same number of director(s) to each Subsidiary Board as it is entitled to appoint to the Board of the Company as provided in Section 2.2(a) above. If at any time after the date hereof, any Investor requests in writing, each of the Group Companies shall promptly take all necessary actions and execute all necessary documents to

 

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establish or re-compose each Subsidiary Board, such that each Subsidiary Board shall consist of all of the director(s) that such Investor is entitled to appoint to the Board of the Company in accordance with this Agreement, and shall provide to such Investor with evidence proving completion of such establishment or re-composition to the satisfaction of such Investor as soon as practicably but in any case no later than one (1) month upon receipt of the foregoing request. So long as Perfect Harmony hold any Shares of the Company, Perfect Harmony shall have the right, but not the obligation, to appoint three (3) directors to serve on each Subsidiary Board, and so long as Fengshion Capital hold any Shares of the Company, Fengshion Capital shall have the right, but not the obligation, to appoint one (1) director to serve on each Subsidiary Board, provided that the maximum number of directors of such Subsidiary Board shall not exceed five (5). Each of the Group Companies covenants and agrees to take any and all action necessary to ensure that directors appointed by an Investor to serve on the Subsidiary Boards are not removed unless requested by such Investor.

 

(c)   Committees

 

Any committee, if established by any Group Company, shall include all of the Investor Directors. The number of votes that the existing Perfect Harmony Director (currently Kun DAI) may be entitled to in any committee meeting shall be consistent with the number of votes that he is entitled to in any Board meeting as provided for in Section 2.2(a)(ii). Each of the Group Companies covenants and agrees to take any and all action necessary to ensure that each Investor Director to serve on the committee is not removed unless requested by the Investor appointed him/her.

 

(d)   Observer

 

LC shall have the right, but not the obligation, to designate one representative to attend meetings of the Board and any Subsidiary Board in a non-voting observer capacity.

 

3.                                      REGISTRATION RIGHTS

 

3.1          Applicability of Rights

 

Each Investor shall be entitled to the following rights with respect to any potential public offering of the Company’s Ordinary Shares in the United States and shall be entitled to reasonably analogous or equivalent rights with respect to any other offering of the Company’s securities in any other jurisdiction in which the Company undertakes to publicly offer or list such securities for trading on a recognized securities exchange.

 

3.2          Definitions

 

For purposes of this Section 3:

 

(a)           Registration. The terms “register,” “registered,” and “registration” refer to a registration effected by filing a registration statement which is in a form which complies with, and is declared effective by the SEC (as defined below) in accordance with, the Securities Act.

 

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(b)           Registrable Securities. The term “Registrable Securities” means: (1) any Ordinary Shares of the Company issued or issuable pursuant to the conversion of any of the Preferred Shares issued (A) under the Series A Purchase Agreement, the Series Al Purchase Agreement and the Series B Purchase Agreement, or (B) pursuant to the Right of Participation under Section 4, and (2) any Ordinary Shares issued (or issuable upon the conversion or exercise of any warrant, right or other security which is issued) as a dividend or other distribution with respect to, or in exchange for or in replacement of, any Preferred Shares described in clause (1) of this subsection (b), and (3) Ordinary Shares issued or issuable in respect of the Ordinary Shares described in clause (1) and (2) above upon any share split, share dividend, share combination or consolidation, recapitalization, reclassification or other similar event in relation to the Shares, and (4) any depositary receipts issued by an institutional depositary representing any of the foregoing. Notwithstanding the foregoing, “Registrable Securities” shall exclude any Registrable Securities sold by a Person in a transaction in which rights under this Section 3 are not assigned in accordance with this Agreement, and any Registrable Securities which are sold in a registered public offering under the Securities Act or analogous statute of another jurisdiction, or sold pursuant to Rule 144 promulgated under the Securities Act or analogous rule of another jurisdiction.

 

(c)           Registrable Securities Then Outstanding. The number of shares of “Registrable Securities then outstanding” shall mean the number of Ordinary Shares of the Company that are Registrable Securities and are then issued and outstanding or would be outstanding assuming full conversion of all securities, warrants or other rights which are, directly or indirectly, convertible, exercisable or exchangeable into or for Registrable Securities.

 

(d)           Holder. For purposes of this Section 3, the term “Holder” means any person owning or having the rights to acquire Registrable Securities or any permitted assignee of record of such Registrable Securities to whom rights under this Section 3 have been duly assigned in accordance with this Agreement.

 

(e)           Form F-3 or Form S-3. The term “Form F-3” or “Form S-3” means such respective form under the Securities Act (including Form S-3 or Form F-3, as appropriate) or any successor registration form under the Securities Act subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC.

 

(f)            SEC. The term “SEC” or “Commission” means the U.S. Securities and Exchange Commission.

 

(g)           Registration Expenses. The term “Registration Expenses” shall mean all expenses incurred by the Company in complying with Sections 3.3, 3.4 and 3.5 hereof, including, without limitation, all registration and filing fees, printing expenses, fees, disbursements of counsels for the Company, fees and disbursements of one counsel for the Holders, fees and disbursements for any special legal opinions as requested by the Company, the underwriters or their counsels, “blue sky” fees and expenses and the expense of any special audits incidental to or required by any such registration (but excluding the compensation of regular employees of the Company which shall be paid in any event by the Company).

 

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(h)           Selling Expenses.   The term “Selling Expenses” shall mean all underwriting discounts and selling commissions applicable to the sale of Registrable Securities pursuant to Sections 3.3, 3.4 or 3.5 hereof.

 

(i)           Exchange Act.   The term “Exchange Act” shall mean the United States Securities Exchange Act of 1934, as amended, and any successor statute.

 

3.3          Demand Registration

 

(a)             Request by Holders. Subject to the terms of this Agreement, if the Company shall, at any time after the expiry of one hundred eighty (180) days following the effective date of a registration statement for an IPO, receive a written request from the Holders of at least ten percent (10%) of the Registrable Securities then outstanding that the Company file a registration statement under the Securities Act (other than Form F-3 or Form S-3) covering the registration of a minimum fifteen percent (15%) of the Registrable Securities of such requesting Holders with an anticipated gross proceeds from the registration exceeding US$500,000 pursuant to this Section 3.3, then the Company shall, within ten (10) Business Days of the receipt of such written request, give written notice of such request (“Request Notice”) to all the Holders, and use its best efforts to effect, as soon as practicable, the registration under the Securities Act of all the Registrable Securities that the Holders request to be registered and included in such registration by a written notice given by such Holders to the Company within twenty (20) days after receipt of the Request Notice.

 

For the purposes of this Agreement, reference to registration of securities under the Securities Act and the Exchange Act shall be deemed to mean the equivalent registration in a jurisdiction other than the United States as designated by such Holders, it being understood and agreed that in each such event all references in this Agreement to the Securities Act, the Exchange Act and rules, forms of registration statements and registration of securities thereunder, and to U.S. law and the SEC, shall be deemed to refer to the equivalent statutes, rules, forms of registration statements, registration of securities and laws of and equivalent government authority in the applicable non-U.S. jurisdiction.

 

(b)           Underwriting. If the Holders initiating the registration request under this Section 3.3 (the “Initiating Holders”) intend to distribute the Registrable Securities covered by their request by means of an underwriting, then they shall so advise the Company as a part of their request made pursuant to this Section 3.3 and the Company shall include such information in the Request Notice. In such event, the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriters selected for such underwriting by the Holders of a majority of the Registrable Securities being registered and reasonably acceptable to the Company. Notwithstanding any other provision of this Section 3.3, if the underwriter(s) advise(s) the Company in writing that marketing factors require a limitation of the number of securities to be underwritten, then the Company shall so advise all Holders of Registrable Securities which would otherwise be

 

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registered and underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be reduced as required by the underwriter(s) and allocated among the Holders of Registrable Securities on a pro rata basis according to the number of Registrable Securities then outstanding held by each Holder requesting registration (including the Initiating Holders); provided, however, that the number of shares of Registrable Securities to be included in such underwriting and registration shall not be reduced unless all other securities are first entirely excluded from the underwriting and registration including, without limitation, all shares that are not Registrable Securities and are held by any other Person, including, without limitation, any Person who is an employee, officer or director of the Company or any Subsidiary of the Company; provided  further, that at least thirty percent (30%) of shares of Registrable Securities requested by the Holders to be included in such underwriting and registration shall be so included. If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter(s), delivered at least ten (10) Business Days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration.

 

(c)           Maximum Number of Demand Registrations. The Company shall not be obligated to effect more than three (3) such demand registrations pursuant to this Section 3.3 provided that if the sale of all of the Registrable Securities sought to be included pursuant to this Section 3.3 is not consummated for any reason other than due to the action or inaction of the Holders including Registrable Securities in such Registration, such Registration shall not be deemed to constitute one of the Registration rights granted pursuant to this Section 3.3.

 

(d)             Deferral. Notwithstanding the foregoing, if the Company shall furnish to the Holders requesting registration pursuant to this Section 3.3, a certificate signed by the President or Chief Executive Officer of the Company stating that in the good faith judgment of the Board, it would be materially detrimental to the Company and its shareholders for such registration statement to be filed at such time, then the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request of the Initiating Holders; provided, however, that the Company may not utilize this right more than once in any twelve (12) month period; provided  further, that the Company shall not register any other of its Shares during such twelve (12) month period. A demand right shall not be deemed to have been exercised until such deferred registration shall have been effected.

 

3.4          Piggyback Registrations

 

Subject to the terms of this Agreement, if the Company proposes to register for its own account any of its equity securities in connection with the public offering of such securities, or if any demand registration of equity securities is requested by investors making equity investment in the Company subsequent to the equity investment in the Company by the Holders, the Company shall notify all the Holders of the Registrable Securities in writing at least thirty (30) days prior to filing any registration statement under the Securities Act for purposes of effecting a public offering of securities of the Company (including, but not limited to, registration statements relating to secondary offerings of securities of the Company, but excluding registration statements relating to any registration under Section 3.3 or Section 3.5 of this Agreement or to any employee benefit plan or a corporate reorganization), and shall afford

 

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each such Holder an opportunity to include in such registration statement all or any part of the Registrable Securities then held by such Holder. Each Holder desiring to include in any such registration statement all or any part of the Registrable Securities held by it shall within twenty (20) days after receipt of the above described notice from the Company, so notify the Company in writing, and in such notice shall inform the Company of the number of Registrable Securities such Holder wishes to include in such registration statement. If a Holder decides not to include all of its Registrable Securities in any registration statement thereafter filed by the Company or any subsequent investors, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company or any subsequent investors with respect to offerings of its securities, all upon the terms and conditions set forth herein. No Shareholder of the Company shall be granted the piggyback registration right under this Section 3.4 that is superior to those of the Holders without prior written consent of the Preferred Supermajority.

 

(a)           Underwriting. If a registration statement under which the Company gives notice under this Section 3.4 is for an underwritten offering, then the Company shall so advise the Holders of the Registrable Securities. In such event, the right of any such Holder’s Registrable Securities to be included in a registration pursuant to this Section 3.4 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All the Holders proposing to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriters selected for such underwriting. Notwithstanding any other provision of this Agreement but subject to Section 3.13, if the managing underwriter(s) determine(s) in good faith that marketing factors require a limitation of the number of shares to be underwritten, then the managing underwriter(s) may exclude shares from the registration and the underwriting, and the number of shares that may be included in the registration and the underwriting shall be allocated, first, to the Company, second, to each of the Holders requesting inclusion of their Registrable Securities in such registration statement on a pro rata basis based on the total number of shares of Registrable Securities then held by each such Holder, and third, to holders of other securities of the Company; provided, however, that the right of the underwriter(s) to exclude shares (including the Registrable Securities) from the registration and underwriting as described above shall be restricted so that (i) the number of the Registrable Securities included in any such registration is not reduced below thirty percent (30%) of the aggregate number of shares of the Registrable Securities, on a pro rata basis, for which inclusion has been requested; and (ii) all shares that are not Registrable Securities and are held by any other Person, including, without limitation, any Person who is an employee, officer or director of the Company (or any subsidiary of the Company) shall first be excluded from such registration and underwriting before any Registrable Securities are so excluded. If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter(s), delivered at least ten (10) Business Days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration.

 

(b)           Not Demand Registration. Registration pursuant to this Section 3.4 shall not be deemed to be a demand registration as described in Section 3.3 above. There shall be no

 

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limit on the number of times the Holders may request registration of Registrable Securities under this Section 3.4.

 

3.5          Form F-3 or Form S-3 Registration

 

In case the Company shall receive from any Holder or Holders of any Registrable Securities then outstanding a written request or requests that the Company effect a registration on Form F-3 or Form S-3 for which the reasonably anticipated aggregate offering price to the public would exceed US$500,000 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, then the Company will:

 

(a)             Notice. Promptly give written notice of the proposed registration and the Holder’s or Holders’ request therefor, and any related qualification or compliance, to all other Holders of the Registrable Securities; and

 

(b)             Registration. As soon as practicable, effect such registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within twenty (20) days after the Company provides the notice contemplated by Section 3.5(a); provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance pursuant to this Section 3.5:

 

(i)              if Form F-3 or Form S-3 is not available for such offering by the Holders;

 

(ii)             if the Company shall furnish to the Holders a certificate signed by the Chief Executive Officer of the Company stating that in the good faith judgment of the Board, it would be materially detrimental to the Company and its shareholders for such Form F-3 or Form S-3 registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form F-3 or Form S-3 registration statement no more than once during any twelve (12) month period for a period of not more than sixty (60) days after receipt of the request of the Holder or Holders initiating such registration request pursuant to this Section 3.5; provided that the Company shall not register any of its other Shares during such sixty (60) day period. A registration right under Section 3.5 shall not be deemed to have been exercised until such deferred registration shall have been effected.

 

(iii)            if the Company has, within the twelve (12) month period preceding the date of such request, already effected two Form F-3 or Form S-3 registrations pursuant to this Section 3.5; or

 

(iv)            in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance.

 

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Subject to the foregoing, the Company shall file a Form F-3 or Form S-3 registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders.

 

(c)           Not Demand Registration. Form F-3 registrations shall not be deemed to be demand registrations as described in Section 3.3 above. Except as otherwise provided herein, there shall be no limit on the number of times the Holders may request registration of the Registrable Securities under this Section 3.5.

 

(d)           Underwriting. If the Holders of Registrable Securities requesting registration under this Section 3.5 intend to distribute the Registrable Securities covered by their request by means of an underwriting, the provisions of Section 3.3(b) shall apply to such registration.

 

3.6          Expenses

 

All Registration Expenses incurred in connection with any registration pursuant to Sections 3.3, 3.4 or 3.5 (but excluding the Selling Expenses) shall be borne by the Company. Each Holder participating in a registration pursuant to Sections 3.3, 3.4 or 3.5 shall bear such Holder’s proportionate share (based on the total number of shares sold in such registration other than for the account of the Company) of all the Selling Expenses, in connection with such offering by the Holders.

 

3.7         Obligations of the Company

 

Whenever required to effect the registration of any Registrable Securities under this Agreement the Company shall, as expeditiously as reasonably possible:

 

(a)           Registration Statement. Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to ninety (90) days or, in the case of the Registrable Securities registered under Form F-3 or Form S-3 in accordance with Rule 415 under the Securities Act or a successor rule, until the distribution contemplated in the registration statement has been completed; provided, however, that (i) such ninety (90) day period shall be extended for a period of time equal to the period any Holder refrains from selling any securities included in such registration at the request of the underwriter(s), and (ii) in the case of any registration of the Registrable Securities on Form F-3 which are intended to be offered on a continuous or delayed basis, such ninety (90) day period shall be extended, if necessary, to keep the registration statement effective until all such Registrable Securities are sold.

 

(b)           Amendments and Supplements. Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement.

 

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(c)                             Prospectuses. Furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of the Registrable Securities owned by them that are included in such registration.

 

(d)                            Blue Sky. Use its best efforts to register and qualify the securities covered by such registration statement under such other securities or “blue sky” laws of such jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act.

 

(e)                             Underwriting. In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement in usual and customary form, with the managing underwriter(s) of such offering.

 

(f)                              Notification. Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of (i) the issuance of any stop order by the SEC in respect of such registration statement, or (ii) the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing.

 

(g)                             Opinion and Comfort Letter. Furnish, at the request of any Holder requesting registration of the Registrable Securities, on the date that such Registrable Securities are delivered to the underwriter(s) for sale, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering and reasonably satisfactory to a majority in interest of the Holders requesting registration, addressed to the underwriters, if any, and (ii) letters dated as of (x) the effective date of the registration statement covering such Registrable Securities and (y) the closing date of the offering, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering and reasonably satisfactory to a majority in interest of the Holders requesting registration, addressed to the underwriters, if any.

 

3.8                               Furnish Information

 

It shall be a condition precedent to the obligations of the Company to take any action pursuant to Sections 3.3, 3.4 or 3.5 that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities as shall be required to timely effect the registration of their Registrable Securities.

 

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3.9                               Indemnification

 

In the event any Registrable Securities are included in a registration statement under Sections 3.3, 3.4 or 3.5:

 

(a)                                 By the Company. To the extent permitted by law, the Company will indemnify and hold harmless each Holder, its partners, officers, directors, legal counsel, any underwriter (as defined in the Securities Act) for such Holder and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act, or other United States federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”):

 

(i)                                     any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto;

 

(ii)                                  the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or

 

(iii)                               any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any United States federal or state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any United States federal or state securities law in connection with the offering covered by such registration statement;

 

and the Company will reimburse each such Holder, its partner, officer, director, legal counsel, underwriter or controlling Person for any legal or other expenses reasonably incurred by them, as such expenses are incurred, in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this subsection (a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by such Holder, partner, officer, director, legal counsel, underwriter or controlling Person of such Holder.

 

(b)                                 By Selling Holders. To the extent permitted by law, each selling Holder will, if the Registrable Securities held by such Holder are included in the securities as to which such registration qualifications or compliance is being effected, indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities Act, any underwriter and any other Holder selling securities under such registration statement or any of such other Holder’s partners, directors, officers, legal counsel or any Person who controls such Holder within the meaning of the Securities Act or the Exchange Act, against any losses, claims,

 

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damages or liabilities (joint or several) to which the Company or any such director, officer, legal counsel, controlling Person, underwriter or such other Holder, partner or director, officer or controlling Person of such other Holder may become subject under the Securities Act, the Exchange Act or other United States federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer, controlling Person, underwriter or other Holder, partner, officer, director or controlling Person of such other Holder in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this subsection (b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided, further, that in no event shall any indemnity under this Section (b) exceed the net proceeds received by such Holder in the registered offering out of which the applicable Violation arises.

 

(c)                                  Notice. Promptly after receipt by an indemnified party under this Section 3.9 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 3.9, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential conflict of interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of liability to the indemnified party under this Section 3.9 to the extent the indemnifying party is prejudiced as a result thereof, but the omission to so deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 3.9.

 

(d)                                 Contribution. In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any indemnified party makes a claim for indemnification pursuant to this Section 3.9 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 3.9 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any indemnified party in circumstances for which indemnification is provided under this Section 3.9; then, and in each such case, the indemnified party and the indemnifying party will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in such proportion so that a Holder (together with its related persons) is

 

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responsible for the portion represented by the percentage that the public offering price of its Registrable Securities offered by and sold under the registration statement bears to the public offering price of all securities offered by and sold under such registration statement, and the Company and other selling Holders are responsible for the remaining portion. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case: (A) no Holder will be required to contribute any amount in excess of the net proceeds to such Holder from the sale of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement; and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation.

 

(e)                                  Survival; Consents to Judgments and Settlements. The obligations of the Company and Holders under this Section 3.9 shall survive the completion of any offering of Registrable Securities in a registration statement, regardless of the expiration of any statutes of limitation or extensions of such statutes. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.

 

3.10                  Termination of the Company’s Obligations

 

The Company’s obligations under Sections 3.3, 3.4 and 3.5 with respect to any Registrable Securities proposed to be sold by a Holder in a registration pursuant to Sections 3.3, 3.4 or 3.5 shall terminate upon the seventh (7th) anniversary of the Qualified IPO.

 

3.11                  No Registration Rights to Third Parties

 

Without the prior written consent of the Preferred Supermajority, the Company covenants and agrees that it shall not grant, or cause or permit to be created, for the benefit of any Person any registration rights of any kind (whether similar to the demand, “piggyback” or Form F-3 registration rights described in this Section 3, or otherwise) relating to any securities of the Company which are senior to, or on a parity with, those granted to the Holders of Registrable Securities. In any event, if the Company grants to any holder of the Company’s security any registration right of any nature that are superior to the Holders, as determined in good faith by the Board, the Company shall grant such superior registration right to the Holders as well.

 

3.12                  Assignment of Registration Rights

 

Subject to prior written notification by the Holder to the Company, the right to cause the Company to register Registrable Securities pursuant to this Agreement may be assigned by a Holder provided that: (i) the Holder is transferring all its Registrable Securities; (ii)

 

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the Holder is transferring at least 100,000 Registrable Securities; (iii) the Holder is transferring its Registrable Securities to a constituent partner or shareholder who agrees to act through a single representative; or (iv) the Holder is transferring its Registrable Securities an Affiliate of such Holder; provided that: (a) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; (b) such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement. In the event of a transfer or assignment of Registrable Securities which does not satisfy the conditions set forth above, such securities shall no longer be deemed to constitute “Registrable Securities” for purposes of this Agreement.

 

3.13                        Market Stand-Off

 

Each of the Shareholders (if any) hereby agrees that, if and to the extent requested by the Company or the underwriters managing the initial public offering of the Company’s securities, it will not sell or otherwise transfer or dispose of any securities of the Company (other than those permitted to be included in the registration and other transfers to Affiliates permitted by law) without the prior written consent of the Company or such underwriters, as the case may be, for a period of time specified by the representative of the underwriters not to exceed one hundred and eighty (180) days from the effective date of the registration statement covering such initial public offering or the pricing date of such offering as may be requested by the underwriters. The foregoing provision of this Section 3.13 applies only to the first registration statement of the Company which covers securities to be sold on its behalf to the public in an underwritten offering, but not to the Registrable Securities actually sold pursuant to such registration statement, and shall only be applicable to the Holders if all officers, directors and holders of one percent (1%) or more of the Company’s outstanding share capital enter into similar agreements, and if the Company or any underwriter releases any officer, director or holder of one percent (1%) or more of the Company’s outstanding share capital from his or her sale restrictions so undertaken, then each Holder shall be notified prior to such release and shall itself be simultaneously released to the same proportional extent. The Company shall require all future acquirers of the Company’s securities holding at least one percent (1%) of the then outstanding share capital of the Company to execute prior to a Qualified I PO a market stand-off agreement containing substantially similar provisions as those contained in this Section 3.13.

 

3.14                        Rule 144 Reporting

 

With a view to making available to the Holders the benefits of certain rules and regulations of the SEC which may at any time permit the sale of the Registrable Securities to the public without registration or pursuant to a registration on Form F-3, after such time as a public market exists for the Ordinary Shares, the Company agrees to:

 

(a)                                 make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times after the effective date of the first registration under the Securities Act filed by the Company for an offering of its securities to the general public;

 

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(b)                            file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements); and

 

(c)                             so long as a Holder owns any Registrable Securities, to furnish to such Holder forthwith upon request (i) a written statement by the Company as to its compliance with the reporting requirements of Rule 144 (at any time after ninety (90) days after the effective date of the Company’s initial public offering), the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or its qualification as a registrant whose securities may be resold pursuant to Form F-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company, and (iii) such other reports and documents of the Company as a Holder may reasonably request in availing itself of any rule or regulation of the SEC that permits the selling of any such securities without registration or pursuant to Form F-3.

 

4.                                      RIGHT OF PARTICIPATION

 

Each Investor, and any other holder of the Preferred Shares to which rights under this Section 4 have been duly assigned in accordance with Section 8.1 (each hereinafter referred to as a “Participation Rights Holder”) shall have the right of first refusal to purchase such Participation Rights Holder’s Pro Rata Share (as defined in Section 4.1), of all (or any part) of any New Securities (as defined in Section 4.2) that the Company may from time to time issue after the date of this Agreement (the “Right of Participation”). Each Participation Rights Holder may apportion, at its sole discretion, its Pro Rata Shares among its Affiliates in any proportion.

 

4.1                               Pro Rata Share

 

A Participation Rights Holder’s “Pro Rata Share” for purposes of the Right of Participation is the ratio of (a) the number of Ordinary Shares (calculated on a fully-diluted and as-converted basis) held by such Participation Rights Holder, to (b) the total number of the Ordinary Shares (calculated on a fully-diluted and as-converted basis) held by all Participation Rights Holders immediately prior to the issuance of the New Securities giving rise to the Right of Participation.

 

4.2                               New Securities

 

“New Securities” shall mean any Preferred Shares, any other Shares of the Company designated as “preferred shares”, Ordinary Shares or other Shares of the Company, whether now authorized or not, any Equity Securities of the Company, or rights to purchase the said Equity Securities, or securities of any class whatsoever that are, or may become, convertible or exchangeable into said Equity Securities, provided, however, that the term “New Securities” shall not include:

 

(a)                                 (i) any of the options, warrants or other securities arrangements to purchase any Ordinary Shares issued from time to time to the employees, officers or directors of the Group Companies pursuant to the Company’s employee stock option plan or other equity incentive plan having been approved pursuant to Section 7 hereof and the Amended M&AA; and

 

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(ii) any Ordinary Shares issuable upon exercise or conversion of the forgoing options, warrants or other securities arrangements;

 

(b)                                 any Series B Preferred Shares issued under the Series B Purchase Agreement, and any Ordinary Shares issued pursuant to the conversion of any Preferred Shares;

 

(c)                                  any securities issued or issuable in connection with any share split, share dividend or any subdivision of Ordinary Shares or other similar event in which all the Participation Rights Holders are entitled to participate on a pro rata basis;

 

(d)                                 any securities issued as a dividend or distribution on the Preferred Shares in accordance with the Amended M&AA;

 

(e)                                  any securities issued pursuant to transactions with strategic partners or transactions with financial institutions or lessors in connection with loans, credit arrangements, equipment financings or similar transactions, each such transaction having been approved pursuant to Section 7 hereof and the Amended M &AA;

 

(f)                                   any securities issued pursuant to a Qualified IPO; and

 

(g)                                  any securities issued pursuant to the acquisition of another corporation or entity by the Company by consolidation, merger, purchase of assets, or other reorganization in which the Company acquires, in a single transaction or a series of related transactions, all or substantially all assets of such other corporation or entity, or fifty percent (50%) or more of the equity ownership or voting power of such other corporation or entity, provided that such acquisition has been approved pursuant to Section 7 hereof and the Amended M&AA.

 

4.3                               Procedures

 

(a)                                 First Participation Notice. In the event that the Company proposes to undertake an issuance of any New Securities (in a single transaction or a series of related transactions), it shall give to each Participation Rights Holder written notice of its intention to issue such New Securities (the “First Participation Notice”), describing the amount and class of the New Securities, the price and the general terms upon which the Company proposes to issue such New Securities. Each Participation Rights Holder shall have thirty (30) days from the date of receipt of any such First Participation Notice to agree on behalf of itself or its Affiliates in writing to purchase such Participation Rights Holder’s Pro Rata Share of such New Securities for the price and upon the terms and conditions specified in the First Participation Notice by giving written notice to the Company and stating therein the quantity of the New Securities to be purchased (not to exceed such Participation Rights Holder’s Pro Rata Share). If any Participation Rights Holder fails to so agree in writing within such thirty (30) day period to purchase such Participation Rights Holder’s full Pro Rata Share of an offering of such New Securities, then such Participation Rights Holder shall forfeit the right hereunder to purchase that part of its Pro Rata Share of such New Securities that it did not agree to purchase.

 

(b)                                 Second Participation Notice; Oversubscription. If any Participating Rights Holder fails or declines to fully exercise its Right of Participation in accordance with subsection (a) above, the Company shall promptly give notice (the “Second Participation Notice”) to the

 

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other Participation Rights Holders who have fully exercised their Right of Participation (the “Fully Participating Investors”) in accordance with subsection (a) above, which notice shall set forth the number of the New Securities not purchased by the other Participating Rights Holders pursuant to subsection (a) above (such shares, the “Overallotment New Securities”). Each Fully Participating Investor shall have ten (10) days from the date of receipt of the Second Participation Notice (the “Second Participation Period”) to notify the Company of its desire to purchase more than its Pro Rata Share of the New Securities, stating the number of the additional New Securities it proposes to buy (the “Additional Number”). Such notice may be made by telephone if confirmed in writing within two (2) Business Days. If, as a result thereof, the total number of additional New Securities the Fully Participating Investors propose to buy exceeds the total number of the Overallotment New Securities, each Fully Participating Investor who proposes to buy more than such number of additional New Securities equal to the product obtained by multiplying (i) the number of the Overallotment New Securities by (ii) a fraction, the numerator of which is the number of the Ordinary Shares (calculated on a fully-diluted and as- converted basis) held by such Fully Participating Investor and the denominator of which is the total number of Ordinary Shares (calculated on a fully-diluted and as-converted basis) held by all Fully Participating Investors (each, an “Oversubscribing Fully Participating Investor”) will be cut back by the Company with respect to its oversubscription to that number of the Overallotment New Securities equal to the lesser of (x) its Additional Number and (y) the product obtained by multiplying (i) the number of the Overallotment New Securities available for subscription by (ii) a fraction, the numerator of which is the number of the Ordinary Shares (calculated on a fully-diluted and as-converted basis) held by such Oversubscribing Fully Participating Investor and the denominator of which is the total number of the Ordinary Shares (calculated on a fully-diluted and as-converted basis) held by all the Oversubscribing Fully Participating Investors. Each Fully Participating Investor shall be obligated to buy such number of New Securities as determined by the Company pursuant to this Section 4.3 and the Company shall so notify the Fully Participating Investors within fifteen (15) days following the date of the Second Participation Notice.

 

4.4                               Failure to Exercise

 

If Participating Rights Holders fail or decline to exercise their rights or purchase all New Securities included in the First Participation Notice in accordance with Section 4.3, the Company shall have ninety (90) days following the expiration of the periods as provided in Section 4.3, to sell the New Securities described in the First Participation Notice (with respect to which the Right of Participation hereunder were not exercised) at the same or higher price and upon non-price terms no more favorable to the purchasers thereof than specified in the First Participation Notice. In the event that the Company has not issued and sold such New Securities within such ninety (90)-day period, then the Company shall not thereafter issue or sell any New Securities without again first offering such New Securities to the Participation Rights Holders pursuant to this Section 4.

 

4.5                               Termination

 

The Right of Participation shall terminate upon the closing of a Qualified IPO.

 

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5.                                      TRANSFER RESTRICTIONS

 

5.1                               Co-Sale Right with respect to the Transfer by Perfect Harmony.

 

If at any time after the date hereof, Perfect Harmony proposes to sell or transfer any Shares held by it (such shares, “Perfect Harmony Offered Shares”) to any Person (other than to an Affiliate of Perfect Harmony), Perfect Harmony shall promptly notify other Series B Investors (excluding such Series B Investor itself or its Affiliates being a transferee or acquirer of the Perfect Harmony Offered Shares, the “Special Co-Sale Holder”) by a written notice (“Perfect Harmony Transfer Notice”) describing in reasonable detail the proposed sale or transfer or exchange including, without limitation, the number and class of Perfect Harmony Offered Shares to be sold or transferred or exchanged, the nature of such sale or transfer or exchange, the consideration to be paid, and the name of each prospective purchaser or transferee or acquirer, and each Special Co-Sale Holder shall have the right, exercisable upon written notice to Perfect Harmony (the “Special Co-Sale Notice”) within twenty (20) days after receipt of the Perfect Harmony Transfer Notice, to participate in such sale or transfer or exchange at the same price and subject to the same terms and conditions as set forth in the Perfect Harmony Transfer Notice. The Special Co-Sale Notice shall set forth the number of Shares (on an as-converted basis) that the Special Co-Sale Holder wishes to include in such sale or transfer or exchange, which amount shall not exceed the total number of Shares (on an as-converted basis) held by such Special Co- Sale Holder. To the extent any Special Co-Sale Holder exercises such right of co-sale in accordance with the terms and conditions set forth below, the number of the Perfect Harmony Offered Shares that Perfect Harmony may sell in the transaction shall be correspondingly reduced. The co-sale right of the Special Co-Sale Holders shall be subject to the following terms and conditions:

 

(a)                                 Co-Sale Portion. Each Special Co-Sale Holder shall be entitled to sell up to all of the Shares held by it (on an as-converted basis) pursuant to its co-sale right under this Section 5.1.

 

(b)                                 Transferred Shares. Each Special Co-Sale Holder shall effect its participation in the sale by promptly delivering to Perfect Harmony for transfer to the prospective purchaser one or more duly executed instruments of transfer and other transfer documents required by the applicable Laws, which represent the number of the Shares which such Special Co-Sale Holder elects to sell.

 

(c)                                  Payment to Special Co-Sale Holders; Registration of Transfer. The duly executed instruments of transfer that each Special Co-Sale Holder delivers to Perfect Harmony pursuant to subsection (b) above shall be transferred to the prospective purchaser in consummation of the sale of Shares pursuant to the terms and conditions specified in the Perfect Harmony Transfer Notice, and Perfect Harmony shall concurrently therewith remit to each Special Co-Sale Holder that portion of the sale proceeds received by Perfect Harmony to which such Special Co-Sale Holder is entitled by reason of its participation in such sale. To the extent that any prospective purchaser or purchasers prohibits such assignment or otherwise refuses to purchase shares or other securities from any Special Co-Sale Holder, Perfect Harmony shall not sell to such prospective purchaser or purchasers any Shares unless and until, simultaneously with such sale, Perfect Harmony shall purchase from such Special Co-Sale Holder such Shares or other securities such Special Co-Sale Holder elects to sell; provided that such purchase shall be effected immediately prior to or concurrently with the sale of the Perfect Harmony Offered

 

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Shares and the payment of the consideration made by Perfect Harmony to such Special Co-Sale Holder shall be conditioned on, and take place after, the actual and full payment made by the transferee or acquirer of the Perfect Harmony Offered Shares, provided further, if the transferee or acquirer pays the consideration for the Perfect Harmony Offered Shares in instalments, Perfect Harmony shall make payment to such Special Co-Sale Holder on a pro rata basis immediately after receiving each instalment. The Company shall, upon surrendering by the prospective purchaser or Perfect Harmony of the duly executed instruments of transfer and certificates for the Shares being transferred from such Special Co-Sale Holder as provided above, make proper entries in the register of members of the Company and cancel the surrendered certificates and issue any new certificates in the name of the prospective purchaser or Perfect Harmony, as the case may be, as necessary to consummate the transactions in connection with the exercise by any Special Co-Sale Holder of its co-sale rights under this Section 5.1.

 

5.2                               Term

 

The provisions under this Section 5 shall terminate upon the consummation of a Qualified IPO.

 

5.3                         Accession to this Agreement

 

Each party agrees that, if any Shareholder transfers any Shares to any third party transferee, such Shareholder shall cause such third party transferee to execute a deed of accession in form and substance approved by the Board and become a party to, and to be bound by, this Agreement (and each other relevant Transaction Documents), assuming all the rights and obligations of such Shareholder under this Agreement (and each other relevant Transaction Documents) with respect to the Shares to be transferred.

 

5.4                         Transfer by the Investors

 

For the avoidance of doubt, subject to Section 5.1, each Investor shall have the right to sell, assign and transfer any and all of the Shares or Equity Securities of the Company held by it to any Person, provided that such Investor shall notify the Company of such proposed transfer and assignment in advance. The transfer restrictions and requirements provided in this Section 5 (except for Section 5.1 with respect to Perfect Harmony) shall not apply to any sale or transfer of any Shares or Equity Securities by any Investor.

 

6.                                      DRAG-ALONG

 

6.1                               Drag-Along

 

If after the fourth (4th) anniversary of the Series B Closing Date, the Preferred Supermajority (the “Drag-Along Requestors”) approves a Trade Sale which values the Company at least US$180,000,000 (the “Drag-Along Transaction”) and notify the Company and other Shareholders in writing (“Drag Notice”), then each Shareholder hereby agrees:

 

(a)                                 if such Drag-Along Transaction requires a Shareholder’s approval, with respect to all Shares that such Shareholder owns or over which such Shareholder otherwise exercises voting power, to vote (in person, by proxy or by action by written consent, as 

 

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applicable) all Shares in favor of, and adopt, such Drag-Along Transaction (together with any related amendment to the Amended M&AA required in order to implement such Drag-along Transaction) and to vote in opposition to any and all other proposals that could reasonably be expected to delay or impair the ability of the Company to consummate such Drag-along Transaction;

 

(b)                            if such Drag-along Transaction is a sale of Shares of the Company, to sell the same proportion of Shares of the Company held by such Shareholder as is being sold by the Drag-Along Requestor(s) to the Person(s) to whom the Drag-Along Requestor(s) propose to sell their Shares, and on the same terms and conditions as the Drag-Along Requestor(s);

 

(c)                             to execute and deliver all related documentation and take such other action in support of the Drag-Along Transaction as shall reasonably be requested by the Company or the Drag-Along Requestor(s) in order to carry out the terms and provision of this Section 6, including without limitation executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, indemnity agreement, escrow agreement, consent, waiver, governmental filing, share certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances) and any similar or related documents;

 

(d)                            not to deposit, and to cause their Affiliates or Permitted Transferee not to deposit, except as provided in this Agreement, any Shares of the Company owned by such party or Affiliate or Permitted Transferee in a voting trust or subject any Shares to any arrangement or agreement with respect to the voting of such Shares, unless specifically requested to do so by the acquiror in connection with the Drag-Along Transaction;

 

(e)                             to refrain from exercising any dissenters’ rights or rights of appraisal under applicable law at any time with respect to such Drag-Along Transaction; and

 

(f)                              if the consideration to be paid in exchange for the Shares pursuant to this Section 6 includes any securities and due receipt thereof by any Shareholder would require under applicable law (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities or (y) the provision to any Shareholder of any information other than such information as a prudent issuer would generally furnish in an offering made solely to “accredited investors” as defined in Regulation D promulgated under the Securities Act, the Company may cause to be paid to any such Shareholder in lieu thereof, against surrender of the Shares which would have otherwise been sold by such Shareholder, an amount in cash equal to the fair value (as determined in good faith by the Company) of the securities which such Shareholder would otherwise receive as of the date of the issuance of such securities in exchange for the Shares.

 

Notwithstanding any provision in this Agreement and the Amended M&A to the contrary (including without limitation Section 7.1), to the extent permitted by applicable laws, any Drag-Along Transaction contemplated under this Section 6 shall not be subject to a prior written consent or approval of any shareholder except those specifically set forth in this Section 6, and the proceeds of transactions contemplated under this Section 6 shall be distributed pursuant to Section 7.3. The Company shall use all reasonable efforts to cause all Members to be subject to the obligations set forth in this Section 6.

 

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6.2                               Termination.

 

The obligation under this Section 6 shall be terminated upon a Qualified IPO. 

 

7.                                      PROTECTIVE PROVISIONS AND PREFERENCE OF PREFERRED SHARES

 

7.1                               Matters Requiring Consent of Preferred Shares

 

In addition to any other vote or consent required elsewhere in this Agreement, the Amended M&AA or by any applicable Law, each Group Company shall not take any of the following actions without the affirmative vote or prior written consent of the Preferred Supermajority:

 

(a)                                 any amendment or change of the rights, preferences, privileges or powers of, or the restrictions provided for the benefit of, any class, series or type of Preferred Shares;

 

(b)                                 any issuance of the Series A Preferred Shares other than in accordance with the Series A Purchase Agreement, any issuance of the Series Al Preferred Shares other than in accordance with the Series Al Purchase Agreement, or any issuance of the Series B Preferred Shares other than in accordance with the Series B Purchase Agreement;

 

(c)                                  any authorization, creation or issuance by the Company of any class or series of Shares or Equity Securities, any instruments that are convertible into Equity Securities, or the reclassification of any outstanding securities into Equity Securities, having rights, powers or preferences, such as dividend rights, redemption rights or liquidation preferences, superior to or on a parity with the Series A Preferred Shares, the Series Al Preferred Shares or the Series B Preferred Shares;

 

(d)                                 any issuance, increase or reduction of any Equity Securities of any Group Company, or any issuance, increase or reduction of any options or warrants for, or any securities exchangeable for or convertible into, or any right to purchase, any Equity Securities of any Group Company, or any action to dilute or reduce any Investor’s equity interest in any Group Company;

 

(e)                                  adoption, amendment, alteration, or waiver of any provision of the memorandum and articles of association or other charter documents of any Group Company;

 

(f)                                   unless otherwise provided in this Agreement, any increase or decrease in the authorized number of shares of any class of shares or the registered capital of any Group Company;

 

(g)                                  any repurchase or redemption of any Equity Securities of any Group Company, other than pursuant to (1) the redemption right of the holders of the Preferred Shares as provided in the Amended M&AA or (2) contractual rights to repurchase Ordinary Shares from the employees, officers, directors or consultants of the Group Companies upon termination of their employment or services pursuant to any incentive plan or award agreement approved in accordance with this Agreement and the Amended M&AA;

 

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(h)                                 any Trade Sale;

 

(i)                                     any increase or decrease in the authorized size of the board of directors of any Group Company, or amendment to the rules or mechanisms for the appointment, removal or replacement of any director or to the power of any director;

 

(j)                                    any reorganization, split, Liquidation Event or any filing by or against any Group Company for the appointment of a receiver, administrator or other form of external manager, or the winding up, liquidation, bankruptcy or insolvency of any Group Company;

 

(k)                                 any mergers, acquisition, spin-off or reorganization of any Group Company, or any waiver or dilution of any Group Company’s equity interest;

 

(l)                                     termination of, or any amendment to, any Control Document or any other document through which a Group Company effects Control over another Group Company;

 

(m)                             declaration and/or payment of any dividends or other distributions on any securities of any Group Company;

 

(n)                                 adoption of or any amendment to the annual business plan or annual budget of any Group Company;

 

(o)                                 any lease or rent of fixed assets or real properties in excess of US$100,000 in a fiscal year by any Group Company to any Person;

 

(p)                                 any transaction involving a Group Company, on the one hand, and any Group Company’s employees, officers, directors or shareholders or any Affiliate of the Group Company’s shareholders or any of its officers, directors or shareholders, on the other hand, except for employment contracts between a Group Company and an employee or officer; or any transfer of assets or other related transaction between any Group Companies or any payment made by any Group Company to any Related Party (as  defined in the Series B Purchase Agreement), each in excess of US$500,000 in a single transaction or in excess of US$3,000,000 in aggregate in any financial year;

 

(q)                                 any investment by any Group Companies;

 

(r)                                    establishment of any joint venture with any third party or Subsidiaries with any third party;

 

(s)                                   any material alteration or change to, or termination of any principal business of any Group Company or entry into a new line of business;

 

(t)                                    except in the course of conducting ordinary business by the Group Companies as approved by the Board, sell, transfer, license, charge, mortgage, license, encumber or otherwise dispose of or create any exclusive third party right on intellectual  property of any Group Company;

 

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(u)                                 incurrence of any indebtedness or loan from any bank or financial institution in excess of US$100,000 in one transaction or in excess of US$250,000 annually, incurrence of any loan or obtaining financial support from any Person other than a bank or a financial institution, provision of any loan to any party, provision of any guarantee for indebtedness, provision of mortgage or other security with any asset of any Group Company, or any issuance or creation of any bond or debenture by any Group Company to any Person (including without limitation, any employee or director of any Group Company) except for trade payables or accruals incurred in the ordinary course of business;

 

(v)                                 adoption or approval of, or any amendment to, the compensation systems, annual bonus plans, distribution and allocation plans, employee stock option plan or other equity incentive plan, or share purchase programs of any Group Company;

 

(w)                               appointment, replacement or removal of the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, president, vice president, chairman, manager or other officers at the same or senior level of any Group Company whose annual salary and bonus exceeds US$100,000;

 

(x)                                 appointment or change of the auditors of any Group Company or any adoption or change of any treasury policy, accounting policy, or fiscal policy, or any change to the fiscal year of any Group Company;

 

(y)                                 initiation, waiver, compromise, or settlement of any dispute, claim, litigation or arbitration involving claims of more than RMB1,000,000;

 

(z)                                  making any raise by more than fifty percent (50%) in compensation in any twelve (12) month period of any employee or director of any Group Company with yearly salary of at least RMB300,000;

 

(aa)                          any incurrence of expenditure in excess of ten percent (10%) of the monthly consolidated budget of the Company, except for those in accordance with the previously approved annual budget, business and financial plan;

 

(bb)                          entry into any commitment which involve expenditure of US$200,000 or more by the Group Companies in aggregate;

 

(cc)                            any other event which may negatively affect the rights, preferences, privileges or powers of any Preferred Shares herein; or

 

(dd)                          any agreement or commitment to do any of the foregoing, or any resolution approving any of the foregoing,

 

provided that, where a Special Resolution or an ordinary resolution, as the case may be, is required by applicable Law to approve any of the matters listed above, and such matter has not received consent of the Preferred Supermajority, then the Shares held by the holders who voted against the Special Resolution or the ordinary resolution, as the case may be, shall together carry the number of votes equal to the votes of all members who voted for the resolution plus one; provided, further, that, if the occurrence of the matter as set forth in item (i) above adversely

 

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affects any Investor’s right to appoint, remove or replace any director of any Group Company, such matter shall also require the consent of such Investor so affected.

 

7.2                                             Dividends

 

(a)                                 Subject to the provisions of this Agreement, the Amended M&AA and any applicable Laws, the Board may from time to time declare dividends and other distributions on the issued and outstanding Shares of the Company and authorize payment of the same out of the funds of the Company legally available therefor.

 

(b)                                 As to the dividend payment, (1) the Preferred Shares shall rank senior and prior to the Ordinary Shares and other Junior Securities, (2) the Series B Preferred Shares shall rank senior and prior to the Series A Preferred Shares and the Series A1 Preferred Shares, and (3) Series A Preferred Shares and Series A1 Preferred Shares shall rank pari passu with each other.

 

(c)                                  Subject to Section 7.1, the Board may from time to time declare dividends and other distributions on issued and outstanding shares of the Company and authorize payment of the same out of the funds of the Company lawfully available therefor. When and if declared by the Board, (A) each holder of the Series B Preferred Shares shall be entitled to, prior and in preference to any declaration or payment of any dividend on the Series A Preferred Shares, Series Al Preferred Shares, the Ordinary Shares and other Junior Securities, dividends carried at the rate of five percent (5%) per annum of the Original Series B Issue Price (As Adjusted) on each Series B Preferred Share held by such holder, for each year such Series B Preferred Share was issued and outstanding (or pro rata for a partial year); (B) after the payment of dividends on the Series B Preferred Shares in full, each holder of the Series A Preferred Shares and each holder of the Series Al Preferred Shares shall be entitled to, prior and in preference to any declaration or payment of any dividend on the Ordinary Shares and other Junior Securities, dividends carried at the rate of five percent (5%) per annum of the Original Series A Issue Price (As Adjusted) on each such Series A Preferred Share held by such holder and dividends carried at the rate of five percent (5%) per annum of the Original Series Al Issue Price (As Adjusted) on each such Series Al Preferred Share held by such holder (as the case may be), for each year such Series A Preferred Share or such Series Al Preferred Share (as the case may be) was issued and outstanding (or pro rata for a partial year); and (C) each holder of the Preferred Shares shall have the right to participate in any distribution among other Shares or Equity Securities of the Company pro rata based on the number of Ordinary Shares held by each such holder (calculated on an as-converted basis). Unless and until any dividends or other distributions in like amount have been paid in full on the Series B Preferred Shares (on an as-converted basis), the Company shall not declare, pay or set apart for payment, any dividend and other distributions on any Junior Securities or make any payment on account of, or set apart for payment, money for a sinking or other similar fund for, the purchase, redemption or other retirement of, any Junior Securities or any warrants, rights, calls or options exercisable or exchangeable for or convertible into any Junior Securities, or make any distribution in respect thereof, either directly or indirectly, and whether in cash, obligations or shares of the Company or other property. Unless and until any dividends or other distributions in like amount have been paid in full on the Series A Preferred Shares and the Series Al Preferred Shares (on an as-converted basis), the Company shall not declare, pay or set apart for payment, any dividend and other distributions on any Junior Securities or make any payment on account of, or set apart for payment, money for a sinking or

 

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other similar fund for, the purchase, redemption or other retirement of, any Junior Securities or any warrants, rights, calls or options exercisable or exchangeable for or convertible into any Junior Securities, or make any distribution in respect thereof, either directly or indirectly, and whether in cash, obligations or shares of the Company or other property. The above dividends shall be payable and accrue when, as and if declared by the Board and shall be cumulative;

 

(d)                                 If the Company has declared or accrued but unpaid dividends with respect to any Preferred Share upon the conversion of such Preferred Share as  provided in Amended M&AA, then the Company shall, at its discretion, opt to, (i) as  agreed by the holders of such Preferred Shares to be converted, convert all such declared or accrued but unpaid dividends on such Preferred Share to be converted into the Ordinary Shares pursuant to Amended M&AA at the then-effective applicable Conversion Price (as defined in the Amended M&AA) on the same basis as  such Preferred Share to be converted, or (ii) pay off all such dividends by cash upon conversion of such Preferred Shares.

 

7.3                               Liquidation Preference

 

(a)                                 Upon the occurrence of any Liquidation Event, whether voluntary or involuntary, the assets of the Company legally available for distribution shall be distributed among the holders of the issued and outstanding Shares in the following order and manner:

 

(i)                       in priority to any payment to the holders of Series A Preferred Shares, the holders of Series Al Preferred Shares, the holders of Ordinary Shares and the holders of other Junior Securities, pay to each holder of Series B Preferred Shares an amount per Series B Preferred Share equal to (x) one hundred and fifty percent (150%) of the Original Series B Issue Price (As Adjusted), plus (y) any declared but unpaid dividend on such Series B Preferred Shares;

 

(ii)                    after the payment to the holders of Series B Preferred Shares has been fully made in accordance with Section 7.3(a)(i), in priority to any payment to the holders of Ordinary Shares and the holders of other Junior Securities, pay to each holder of Series A Preferred Shares and each holder of Series Al Preferred Shares, pari passu as  between themselves, an amount per Series A Preferred Share or per Series Al Preferred Share, as the case may be, equal to (x) one hundred and fifty percent (150%) of the Original Series A Issue Price (As Adjusted) or one hundred and fifty percent (150%) of the Original Series Al Issue Price (As Adjusted), as the case may be, plus (y) any declared but unpaid dividend on such Series A Preferred Shares or such Series Al Preferred Shares, as  the case may be; and

 

(iii)                 after the payments to the holders of the Series B Preferred Shares, the holders of the Series A Preferred Shares and the holders of the Series Al Preferred Shares have been fully made in accordance with Section 7.3(a)(i) and Section 7.3(a)(ii), pay and distribute all of the remaining assets of the Company available for distribution among the holders of the Preferred Shares and the holders of the Ordinary Shares pro rata based on the number of Ordinary Shares held by each such holder (assuming full conversion of all Preferred Shares).

 

(b)                            Liquidation Event. Any of the following events shall be treated as  a liquidation (each, a “Liquidation Event”) under this Section 7.3 unless waived in writing by the Preferred

 

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Supermajority: (i) any liquidation, winding-up, or dissolution of any Group Company, and (ii) any Trade Sale.

 

8.                                      CONFIDENTIALITY AND NON DISCLOSURE 

 

8.1                               Disclosure of Terms

 

The terms and conditions of this Agreement and the other Transaction Documents, any term sheet or memorandum of understanding entered into pursuant to the transactions contemplated hereby and thereby, all exhibits and schedules attached hereto and thereto, the transactions contemplated hereby and thereby (collectively, the “Financing Terms”), including their existence, and the documents, materials, and other information of the Group Companies of a confidential nature obtained by the holders of the Preferred Shares upon exercising the Information Rights and Inspection Rights, and all information of a confidential nature furnished by any party hereto and by representatives of such party to any other party hereto or any of the representatives of such party shall be considered confidential information (collectively with the Financing Terms, the “Confidential Information”) and shall not be disclosed by any party hereto to any third party except in accordance with the provisions set forth below.

 

8.2                               Press Release

 

No announcement regarding any of the Financing Terms (including an Investor’s subscription of Preferred Shares of the Company) in a press release, conference, advertisement, announcement, professional or trade publication, mass marketing materials or otherwise to the general public may be made without the prior written consent of the Board and the Preferred Supermajority.

 

8.3                               Permitted Disclosures

 

Notwithstanding the foregoing, the Company and the Investors may disclose (i) the Confidential Information to its current or bona f ide prospective investors, Affiliates and their respective employees, bankers, lenders, accountants, legal counsels, business partners or representatives or advisors who need to know such information, in each case only where such Persons are informed of the confidential nature of the Confidential Information and are under appropriate nondisclosure obligations substantially similar to those set forth in this Section 8, (ii) such Confidential Information as is required to be disclosed pursuant to routine examination requests from Governmental Authorities with authority to regulate such party’s operations, in each case as  such party reasonably deems appropriate, and (iii) the Confidential Information to any Person to which disclosure is approved in writing by the other parties hereto. Any party hereto may also provide disclosure in order to comply with applicable laws, as  set forth in Section 8.4 below.

 

8.4                               Legally Compelled Disclosure

 

Except asset forth in Section 8.2 above, in the event that any party is requested or becomes legally compelled (including without limitation, pursuant to any applicable tax, securities, or other laws and regulations of any jurisdiction) to disclose any Confidential

 

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Information, such party (the “Disclosing Party”) shall, to the extent legally permitted and reasonably possible, provide the other parties hereto with prompt written notice of that fact and consult with the other parties hereto regarding such disclosure. At the request of the other parties, the Disclosing Party shall, to the extent reasonably possible and with the cooperation and reasonable efforts of the other parties, seek a protective order, confidential treatment or other appropriate remedy. In any event, the Disclosing Party shall furnish only that portion of the information that is legally required and shall exercise reasonable efforts to obtain reliable assurance that confidential treatment will be accorded to such information

 

8.5                         Other Exceptions

 

Notwithstanding any other provision of this Section 8, the confidentiality obligations of the parties shall not apply to: (i) information which a restricted party learns from a third party having the right to make the disclosure, provided the restricted party complies with any restrictions imposed by the third party; (ii) information which is rightfully in the restricted party’s possession prior to the time of disclosure by the protected party and not acquired by the restricted party under a confidentiality obligation; or (iii) information which enters the public domain without breach of confidentiality by the restricted party.

 

8.6                         Other Information

 

The provisions of this Section 8 shall be in addition to, and not in substitution for, the provisions of any separate nondisclosure agreement executed by any of the parties with respect to the transactions contemplated hereby.

 

8.7                               Survival

 

The obligations of each party hereto under this Section 8 shall survive and continue to be binding upon such party for a period of five (5) years after the earlier of (i) the termination of this Agreement; and (ii) the first date that such party no longer holds any Shares and ceases to be a party to this Agreement.

 

9.             ASSIGNMENT AND AMENDMENT

 

9.1                               Assignment

 

Notwithstanding anything herein to the contrary:

 

(a)                                      Information Rights, Inspection Rights. The rights of each Investor under Section 2.1 may be assigned to any permitted transferee(s) of such Investor; provided, however, that no party may be assigned any of the foregoing rights unless the Company is given written notice by the assigning party stating the name and address of the assignee and identifying the securities of the Company as  to which the rights in question are being assigned; and provided  further, that any such assignee shall receive such assigned rights subject to all the terms and conditions of this Agreement, including without limitation the provisions of this Section 9.

 

(b)                                      Rights of Participation; Right of First Refusal; Co-Sale Rights; Drag- Along Rights; Protective Provisions; other Preference Rights. The rights of each Investor under

 

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Sections 4, 5, 6 and 7 are fully assignable in connection with a transfer of the Shares entitled to such rights by such Investor, as  the case may be; provided, however, that no party may be assigned any of the foregoing rights unless the Company is given written notice by such assigning party at the time of such assignment, stating the name and address of the assignee and identifying the securities of the Company as  to which the rights in question are being assigned; and provided further, that any such assignee shall receive such assigned rights subject to all the terms and conditions of this Agreement, including without limitation the provisions of this Section 9.

 

9.2                               Amendment of Rights

 

Any provision in this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only by the written consent of (i) as  to the Company, only by the Company; and (ii) as  to an Investor, only by such Investor; and (iii) as to the holders of the Ordinary Shares, by the Shareholders holding at least a majority of the issued and outstanding Ordinary Sharesprovided, however. Any amendment or waiver effected in accordance with this Section 9 shall be binding upon the Company, the Investors, each holder of the Shares and their respective Permitted Transferees.

 

10.                               OTHER UNDERTAKINGS OF PARTIES 

 

10.1                        Non-Competition

 

Each Series B Investor respectively agrees that, without the consent of the Company, (i) for as  long as  Perfect Harmony holds any Shares, (A) Perfect Harmony shall not, and shall procure its Affiliates not to engage in the auction business of Residual Second Hand Vehicles within the territory of the PRC other than through the Group Companies, and (B) if the Board approves that any Group Company shall engage in the trading of auto parts, Perfect Harmony shall not, and shall procure its Affiliates not to engage in the trading of auto parts that may compete with the Group Companies; For the avoidance of doubt, except for the restrictions as  set forth in the preceding sentence, Perfect Harmony and its Affiliates (other than the Group Companies) shall have the right and at its sole discretion to conduct any kind or type of business, whether or not competing with the business the Group Companies currently conducting or proposing to conduct;

 

(ii)                                  for as  long as  an Investor holds any Shares, such Investor shall not make any equity investment (including without limitation, by means of setting up new Subsidiary, joint venture, or acquiring securities thereof) and shall cause its Affiliates not to make any equity investment, in any Person that (i) owns, operates or Controls the website located at www.bochewang.com.cn or under the trade name of “博车”, or (ii) owns, operates or Controls the website located at www.jingyoutimes.com or under the trade name of “精友”, (iii) owns, operates or Controls the website located at www.tengxincar.com or under the trade name of “腾信”, (iv) owns, operates or Controls the website located at www.bjdxh.com or under the trade name of “德信行”, or (v) owns, operates or Controls the website located at www.7-che.com or under the trade name of “7 车”; For the avoidance of doubt, except for the Persons as  set forth in

 

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the preceding sentence, each Investor and its Affiliates shall have the right and at its sole discretion to invest in any kind or type of business, whether or not competing with the business the Group Companies currently conducting or proposing to conduct;

 

(iii)                               for as  long as  an Investor holds any Shares, such Investor shall, within its capacity and to the extent practical, provide technical and general operational support to the Group Companies for carrying out the Business; and

 

(iv)                              for as  long as  an Investor holds any Shares, in the event that the Company seeks the possibility of an IPO, such Investor shall cooperate with the Company to enter into a customary non-compete agreement as expressly required by the applicable listing rule.

 

10.2                        Tax Matters

 

(a)                                      The Company shall not, without the written consent of the Preferred Majority, issue or transfer securities in the Company to any investor if following such issuance or transfer the Company, in the determination of counsel or accountants for the investor, would be a “Controlled Foreign Corporation” (“CFC”) as defined in the U.S. Internal Revenue Code of 1986, as amended (or any successor thereto) (the “Code”) with respect to the securities held by investor. No later than two (2) months following the end of each Company taxable year, the Company shall provide the following information to the Investors: (i) the Company’s capitalization table as  of the end of the last day of such taxable year and (ii) a report regarding the Company’s status as a CFC. In addition, the Company shall provide each Investor with access to such other Company information as  may be required by such Investor to determine the Company’s status as a CFC to determine whether such Investor is required to report its pro rata portion of the Company’s “Subpart F income” (as defined in Section 952 of the Code) on its United States federal income tax return, or to allow such Investor to otherwise comply with applicable United States federal income tax laws. The Company shall make due inquiry with its tax advisors on at least an annual basis regarding its status as  a CFC and regarding whether any portion of the Company’s is income is Subpart F income. In the event that the Company is determined by the Company’s tax advisors or by the counsel or accountants for any Investor to be a CFC with respect to the securities held by such Investor, the Company agrees to use commercially reasonable efforts to avoid generating Subpart F income. In the event that the Company is determined by the counsel or accountants for any Investor to be a CFC with respect to the securities held by such Investor, the Company agrees, to the extent permitted by law, to annually make dividend distributions to such Investor in an amount equal to 50% of any income deemed distributed to such Investor pursuant to Section 951(a) of the Code.

 

(b)                                      The Company will not be at any time during the calendar year in which the Closing (as defined in the Series B Purchase Agreement) occurs a “passive foreign investment company” within the meaning of Section 1297 of the Code (a “PFIC”). The Company shall use its best efforts to avoid being a PFIC. The Company shall make due inquiry with its tax advisors on at least an annual basis regarding its status as a PFIC, and if the Company is informed by its tax advisors that it has become a PFIC, or that there is a likelihood of the Company being classified as a PFIC for any taxable year, the Company shall promptly notify each Investor of such status or risk, as the case may be. In connection with a “Qualified Electing Fund” election made by any Investor pursuant to Section 1295 of the Code or a

 

38

 

“Protective Statement” filed by such Investor pursuant to Treasury Regulation Section 1.1295-3, as amended (or any successor thereto), the Company shall provide annual financial information to each Investor in the form satisfactory to such Investor as  soon as  reasonably practicable following the end of each taxable year of such Investor (but in no event later than 90 days following the end of each such taxable year), and shall provide such Investor with access to such other Company information as  may be required for purposes of filing U.S. federal income tax returns in connection with such Qualified Electing Fund election or Protective Statement. In the event that any Investor who has made a “Qualified Electing Fund” election must include in its gross income for a particular taxable year its pro rata share of the Company’s earnings and profits pursuant to Section 1293 of the Code, the Company agrees, to the extent permitted by law, to make a dividend distribution to such Investor (no later than 90 days following the end of such Investor’s taxable year or, if later, 90 days after the Company is informed by such Investor that such Investor has been required to recognize such an income inclusion) in an amount equal to 50% of the amount so included by such Investor.

 

(c)                                       The Company shall take such actions, including making an election to be treated as  a corporation or refraining from making an election to be treated as  a partnership, as  may be required to ensure that at all times the Company is treated as  corporation for United States federal income tax purposes.

 

(d)                                      The Company shall make due inquiry with its tax advisors on at least an annual basis regarding whether any Investor’s interest in the Company is subject to the reporting requirements of either or both of Sections 6038 and 6038B (and the Company shall duly inform such Investor of the results of such determination), and in the event that the Company’s tax advisors or any Investor’s tax advisors determine that such Investor’s interest in the Company is subject to any such reporting requirements, the Company agrees, upon a request from such Investor, to provide such information to such Investor as  may be necessary to fulfill such Investor’s obligations thereunder.

 

10.3                        Control of Subsidiaries

 

(a)                                      All material aspects of the formation, maintenance and compliance by any direct or indirect Subsidiary of the Company or Person Controlled by the Company, whether now in existence or formed in the future, shall be subject to the review and approval by the Board and the Company shall promptly provide the Investors with copies of all material related documents and correspondence.

 

(b)                                      The Company shall at any time institute and shall keep in place arrangements reasonably satisfactory to the Board such that the Company will be permitted to properly consolidate the financial results of any direct or indirect Subsidiary of the Company (including without limitation the PRC Companies) in consolidated financial statements for the Company prepared under the PRC GAAP.

 

(c)                                       The Company shall take all necessary actions to maintain any direct or indirect Subsidiary or Person Controlled by it, whether now in existence or formed in the future, as is necessary to conduct the Business as conducted or as proposed to be conducted.

 

39

 

(d) The Company shall use its best efforts to cause any direct or indirect Subsidiary, whether now in existence or formed in the future, to comply in all material respects with all applicable Laws.

 

10.4                        Control Documents

 

(A) Each Group Company, hereby jointly and severally represents, warrants and covenants to the Investors that as of the date hereof, and during the term of the relevant Control Documents, each of the statements contained in this Section 10.4(A) is true, accurate and complete.

 

(a)                                 Each Group Company has  the legal right, power and authority (corporate and other) to enter into and perform its/his/her obligations under each Control Document to which it/he/she is a party and has taken all necessary corporate action to authorize the execution, delivery and performance of, and has authorized, executed and delivered, each Control Document to which it/he/she is a party.

 

(b)                                 Each Control Document constitutes a valid and legally binding obligation of the parties named therein enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

(c)                                  The execution and delivery by each party named in each Control Document, and the performance by such party of its obligations thereunder and the consummation by it of the transactions contemplated therein shall not (i) result in any violation of, be in conflict with, or constitute a default under, with or without the passage of time or the giving of notice, any provision of its constitutional documents as  in effect at the date hereof, any applicable Law, or any Contract to which a Group Company is a party or by which a Group Company is bound, (ii) accelerate, or constitute an event entitling any Person to accelerate, the maturity of any indebtedness or other liability of any Group Company or to increase the rate of interest presently in effect with respect to any indebtedness of any Group Company, or (iii) result in the creation of any lien, claim, charge or encumbrance upon any of the properties or assets of any Group Company.

 

(d)                                 All approvals, permits and consents required in connection with the Control Documents have been obtained in writing, and no such approval, permit or consent has been withdrawn or be subject to any condition precedent which has not been fulfilled or performed.

 

(e)                                  Each Control Document is in full force and effect and no party to any Control Document is in breach or default in the performance or observance of any of the terms or provisions of such Control Document. None of the parties to any Control Document has  sent or received any communication regarding termination of or intention not to renew any Control Document, and no such termination or non-renewal has been threatened by any of the parties thereto.

 

40

 

(B) Perfect Harmony represents, warrants and covenants to Fengshion Capital and LC that as of the date hereof, and during the term of the relevant Control Documents, each of the statements contained in this Section 10.4(B) is true, accurate and complete.

 

(a)                                 Uxin WFOE has the legal right, power and authority (corporate and other) to enter into and perform its obligations under each Control Document to which it is a party and has  taken all necessary corporate action to authorize the execution, delivery and performance of, and has  authorized, executed and delivered, each Control Document to which it is a party.

 

(b)                                 Each Control Document to which Uxin WFOE is a party to constitutes a valid and legally binding obligation of Uxin WFOE enforceable in accordance with its terms, except (i) as  limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

(c)                                  The execution and delivery by Uxin WFOE of each Control Document to which it is party, and the performance by it of its obligations thereunder and the consummation by it of the transactions contemplated therein shall not (i) result in any violation of, be in conflict with, or constitute a default under, with or without the passage of time or the giving of notice, any provision of its constitutional documents as  in effect at the date hereof, any applicable Law, or any Contract to which a Group Company is a party or by which a Group Company is bound, (ii) accelerate, or constitute an event entitling any Person to accelerate, the maturity of any indebtedness or other liability of any Group Company or to increase the rate of interest presently in effect with respect to any indebtedness of any Group Company, or (iii) result in the creation of any lien, claim, charge or encumbrance upon any of the properties or assets of any Group Company.

 

(C) Fengshion Capital represents, warrants and covenants to Perfect Harmony and LC that, during the term of the relevant Control Documents, each of the statements contained in this Section 10.4(C) is true, accurate and complete.

 

(a)                                 Fengshion Nominee has  the legal right, power and authority (corporate and other) to enter into and perform its obligations under each Control Document to which it is a party and has taken all necessary corporate action to authorize the execution, delivery and performance of, and has authorized, executed and delivered, each Control Document to which it is a party.

 

(b)                                 Each Control Document to which Fengshion Nominee is a party to constitutes a valid and legally binding obligation of Fengshion Nominee enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

(c)                                  The execution and delivery by Fengshion Nominee of each Control Document to which it is party, and the performance by it of its obligations thereunder and the 

 

41

 

consummation by it of the transactions contemplated therein shall not (i) result in any violation of, be in conflict with, or constitute a default under, with or without the passage of time or the giving of notice, any provision of its constitutional documents as  in effect at the date hereof, any applicable Law, or any Contract to which a Group Company is a party or by which a Group Company is bound, (ii) accelerate, or constitute an event entitling any Person to accelerate, the maturity of any indebtedness or other liability of any Group Company or to increase the rate of interest presently in effect with respect to any indebtedness of any Group Company, or (iii) result in the creation of any lien, claim, charge or encumbrance upon any of the properties or assets of any Group Company.

 

10.5                        Compliance with Law

 

The Group Companies shall comply with (i) all applicable PRC Laws including but not limited to applicable PRC Laws relating to auction, telecommunication business, second hand vehicles, software, advertisement, Intellectual Property, anti-monopoly, taxation, employment, social welfare and benefits, and foreign exchange, and (ii) the US Foreign Corrupt Practices Act, as amended, on an ongoing basis.

 

10.6                        Management Personnel and Key Employees

 

Senior management personnel of the Group Companies, including without limitation the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, president, vice president, chairman, manager or other officers at the same or senior level of any Group Company whose annual salary and bonus exceeds US$100,000 shall be appointed, removed or replaced by the Preferred Supermajority. The engagement, dismissal and replacement of any Key Employee (as defined in the Series B Purchase Agreement) shall be approved by the Preferred Supermajority.

 

10.7                        Agreements among the Investors

 

(a)                                      The Investors agree that as long as both Perfect Harmony and any other Series B Investor hold any Shares in the Company (such other Series B Investor, each, a “Swapping Investor”), and if the parent company or other Affiliate of Perfect Harmony (the “Perfect Harmony Parent”) has successfully consummated an initial public offering in U.S., Hong Kong or any jurisdiction on an internationally recognized stock exchange, each Swapping Investor shall have the right (but not obligation), at its sole discretion upon serving a written notice to Perfect Harmony, to convert up to all its Shares in the Company into such number of offering securities of the Perfect Harmony Parent as calculated based on (1) the value of the Shares held by such Swapping Investor in the Company (calculated based pursuant to Section10.7(c) below) and (2) fixed offering price of the Perfect Harmony Parent’s offering securities determined by Perfect Harmony Parent and the underwriter(s) participating in such offering.

 

(b)                                      The Investors agree that as long as both Perfect Harmony and any Swapping Investor hold any Shares in the Company, if the number of directors Perfect Harmony is entitled to appoint to the Board of the Company is less than the majority number of the directors of the Company, then each Swapping Investor shall have the right to (but not 

 

42

 

obligation), at its sole discretion upon serving a written notice to Perfect Harmony, convert up to all its Shares in the Company into such number of shares of the Perfect Harmony Parent as calculated based on (1) the value of the Shares held by such Swapping Investor in the Company (calculated pursuant to Section 10.7(c) below) and (2) the Applicable Price of the shares of the Perfect Harmony Parent at the time of the conversion. The “Applicable Price” of the shares of the Perfect Harmony Parent at the time of the conversion shall be determined as follows: (1) if the shares of the Perfect Harmony Parent are listed on an established stock exchanges, such Applicable Price shall be the average closing sales price for such shares as quoted on the principal exchange on which the Perfect Harmony Parent’s shares are listed during the thirty-trading-day period prior to the date of conversion; (2) in the absence of an established public market for the shares of the Perfect Harmony Parent, the Applicable Price shall be the sales price in the latest Qualified Equity Financing of the Perfect Harmony Parent. For the purpose of this Section 10.7, a “Qualified Equity Financing” shall mean a bona fide equity financing with the net proceeds from which is no less than US$10,000,000.

 

(c)                                       In the conversion described in Sections 10.7(a) and (b) above, the value of the Shares held by each Swapping Investor in the Company shall be determined by the higher of: (1) the value of the Shares of the Company as determined by an independent appraiser jointly approved by the Series A1 investor and the Series B Investors holding at least two-thirds (2/3) of the issued and outstanding Series B Preferred Shares, and (2) the total investment amount paid by such Swapping Investor to the Company plus an internal return rate of 50% per annum.

 

(d)                                      Perfect Harmony hereby covenants to each Swapping Investor that Perfect Harmony shall take all necessary steps to ensure that the Swapping Investor can exercise its rights under this Section 10.7 pursuant to the terms and conditions hereunder.

 

11.                               GENERAL PROVISIONS

 

11.1                                   Notices

 

(a)                                 Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to the other party, upon delivery; (b) when sent by facsimile at the number set forth in  Schedule of Notice hereto, upon receipt of confirmation of error-free transmission; (c) seven (7) Business Days after deposit in the mail as air mail or certified mail, receipt requested, postage prepaid and addressed to the other party as set forth in Schedule of Notice; or (d) three (3) Business Days after deposit with an international overnight delivery service, postage prepaid, addressed to the parties as  set forth in Schedule of Notice with next Business Day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider.

 

(b)                                 Each person making a communication hereunder by facsimile shall promptly confirm by telephone to the person to whom such communication was addressed for each communication made by it by facsimile pursuant hereto but the absence of such confirmation shall not affect the validity of any such communication. A party may change or supplement the addresses given in Schedule of Notice, or designate additional addresses, for

 

43

 

purposes of this Section 11.1 by giving the other party written notice of the new address in the manner set forth above.

 

11.2                        Entire Agreement

 

This Agreement, the Series A Purchase Agreement, the Series Al Purchase Agreement, the Series B Purchase Agreement and any other Transaction Document, together with all the exhibits hereto and thereto, constitute and contain the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements, understandings, duties or obligations between the parties respecting the subject matter hereof (including, without limitation the Prior Shareholders Agreement).

 

11.3                        Governing Law

 

This Agreement shall be governed by and construed under the laws of Hong Kong, without regard to principles of conflict of laws thereunder.

 

11.4                        Severability

 

If any provision of this Agreement is found to be invalid or unenforceable, then such provision shall be construed, to the extent feasible, so as to render the provision enforceable and to provide for the consummation of the transactions contemplated hereby on substantially the same terms as  originally set forth herein, and if no feasible interpretation would save such provision, it shall be severed from the remainder of this Agreement, which shall remain in full force and effect unless the severed provision is essential to the rights or benefits intended by the parties. In such event, the parties shall use best efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which most nearly effects the parties’ intent in entering into this Agreement.

 

11.5                        Third Parties

 

Nothing in this Agreement, express or implied, is intended to confer upon any Person, other than the parties hereto and their permitted successors and assigns any rights or remedies under or by reason of this Agreement.

 

11.6                        Successors and Assigns

 

Subject to the provisions of Section 9.1, the provisions of this Agreement shall inure to the benefit of, and shall be binding upon, the successors and permitted assigns of the parties hereto. This Agreement and the rights and obligations herein may be assigned by any Investor to any Person without the written consent of the other parties. None of the Group Companies may assign its rights or delegate its obligations under this Agreement without the written consent of the Investors except in connection with a permitted transfer in compliance with Section 5 of this Agreement.

 

44

 

11.7                        Interpretation; Captions

 

This Agreement shall be construed according to its fair language. The rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement. The captions to sections of this Agreement have been inserted for identification and reference purposes only and shall not be used to construe or interpret this Agreement. Unless otherwise expressly provided herein, all references to Sections and Exhibits herein are to Sections and Exhibits of this Agreement.

 

11.8                        Counterparts

 

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile and e-mailed copies of signatures shall be deemed to be originals for purposes of the effectiveness of this Agreement.

 

11.9                        Adjustments for Share Splits, Etc.

 

Wherever in this Agreement there is a reference to a specific number of shares of the Preferred Shares or Ordinary Shares of the Company, then, upon the occurrence of any subdivision, combination or share dividend of the Preferred Shares or Ordinary Shares, the specific number of shares so referenced in this Agreement shall automatically be proportionally adjusted to reflect the effect on the outstanding shares of such class or series of shares by such subdivision, combination or share dividend.

 

11.10                 Aggregation of Shares

 

All the Preferred Shares or Ordinary Shares held or acquired by the affiliated entities or persons (as  defined in Rule 144 under the Securities Act) shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.

 

11.11                 Shareholders’ Agreement to Control

 

If and to the extent that there are inconsistencies between the provisions of this Agreement and those of the Amended M &AA, the terms of this Agreement shall prevail as  between the parties hereto (with the exception of the Company). Each party hereby undertakes to take all actions necessary or advisable, as  promptly as  practicable after the discovery of such inconsistency, to amend the Amended M &AA so as to eliminate such inconsistency to the fullest extent as permitted by the applicable Law.

 

11.12                 Dispute Resolution

 

Each of the parties hereto irrevocably (i) agrees that any dispute or controversy arising out of, relating to, or concerning any interpretation, construction, performance or breach of this Agreement, shall be settled by arbitration to be held in Hong Kong which shall be administered by the Hong Kong International Arbitration Centre (“HKIAC”) in accordance with the Hong Kong International Arbitration Centre Administered Arbitration Rules in force at the time of the commencement of the arbitration (the “Arbitration Rules”), (ii) waives, to the fullest extent it may effectively do so, any objection which it may now or hereafter have to the laying of venue of any such arbitration, and (iii) submits to the exclusive jurisdiction of Hong Kong in any

 

45

 

such arbitration. There shall be one (1) arbitrator. The HKIAC Council shall select the arbitrator, who shall be qualified to practice law in Hong Kong. The arbitration shall be conducted in English and Chinese. The decision of the arbitration tribunal shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitration tribunal’s decision in any court having jurisdiction. The parties to the arbitration shall each pay an equal share of the costs and expenses of such arbitration, and each party shall separately pay for its respective counsel fees and expenses; provided, however, that the prevailing party in any such arbitration shall be entitled to recover from the non-prevailing party its reasonable costs and attorney fees. The parties acknowledge and agree that, in addition to contract damages, the arbitrator may award provisional and final equitable relief, including injunctions, specific performance, and lost profits.

 

11.13                 Limitations on Subsequent Rights

 

Without the prior written consent of the Preferred Supermajority, the Company covenants and agrees that it shall not create, grant or issue, or cause or permit to be created, granted or issued, for the benefit of any Person any right or privilege of any nature relating to any Equity Securities of the Company which are senior to, or on a parity with, those granted to the holders of the Series B Preferred Shares. In any event and subject to the foregoing sentence, if the Company grants or issues to any Person any right or privilege of any nature relating to any Equity Securities of the Company that are superior to those of the holders of the Series B Preferred Shares, as  determined in good faith by the Board, the Company shall grant such superior right or privilege to all the holders of the Series B Preferred Shares as  well.

 

11.14                 Replacement

 

Upon execution of this Agreement, the Prior Shareholders Agreement will terminate immediately and be replaced and superseded by this Agreement in its entirety.

 

11.15                 Several Obligations of Parties

 

The Investors’ obligations under this Agreement shall be several and not joint.

 

— REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK —

 

46

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
Fairlubo Auction Company Limited
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Zhanming   Xing
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
Director
    

 

	
 
    	
HK COMPANY:
    
	
 
    	
 
    
	
 
    	
Fairlubo Auction HK Company Limited
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Zhanming   Xing
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
Director
    

 

	
 
    	
WFOE:
    
	
 
    	
 
    
	
 
    	
Company seal is affixed
    
	
 
    	
 
    
	
 
    	
Beijing Youxin Fengshun Lubao Vehicle Auction   Co., Ltd.
    
	
 
    	
(北京优信丰顺路宝机动车拍卖有限公司)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Zhanming   Xing
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
Legal Representative
    

 

	
 
    	
PRC DOMESTIC COMPANY:
    
	
 
    	
 
    
	
 
    	
Company seal is affixed
    
	
 
    	
 
    
	
 
    	
Beijing Fengshun Lubao Vehicle Auction   Co., Ltd.
    
	
 
    	
(北京丰顺路宝机动车拍卖有限公司)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Zhanming   Xing
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
Legal Representative
    

 

SIGNATURE PAGE TO

THIRD AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	
 
    	
TIANJIN   SUBSIDIARY:
    
	
 
    	
 
    
	
 
    	
Company seal is affixed
    
	
 
    	
 
    
	
 
    	
Tianjin Fengshun Lubao Vehicle Information Consulting Services   Co., Ltd.
    
	
 
    	
(天津丰顺路宝机动车信息咨询服务有限公司)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Zhen Zeng
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
Legal   Representative
    

 

	
 
    	
SHANGHAI   SUSIDIARY:
    
	
 
    	
 
    
	
 
    	
Company seal is affixed
    
	
 
    	
 
    
	
 
    	
Shanghai Fengshun Lubao Vehicle Auction Co., Ltd.
    
	
 
    	
(上海丰顺路宝机动车拍卖有限公司)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Zhen Zeng
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
Legal   Representative 
    

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	
 
    	
SERIES   A INVESTOR, SERIES A1 INVESTOR AND SERIES B INVESTOR:
    
	
 
    	
 
    
	
 
    	
PERFECT   HARMONY GROUP LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kun Dai
    
	
 
    	
 
    	
Name:
    	
KUN DAI (戴琨)
    
	
 
    	
 
    	
Title:
    	
Director
    

 

SIGNATURE PAGE TO

THIRD AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	
 
    	
SERIES B INVESTOR:
    
	
 
    	
 
    
	
 
    	
FENGSHION   CAPITAL INVESTMENT FUND, LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	

    

 

SIGNATURE PAGE TO

THIRD AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	
 
    	
SERIES B INVESTOR:
    
	
 
    	
 
    
	
 
    	
LC Fund V, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lin Zhang
    
	
 
    	
 
    	
Name: 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

SIGNATURE PAGE TO
 THIRD AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	
 
    	
SERIES B INVESTOR:
    
	
 
    	
 
    
	
 
    	
LC   Parallel Fund V, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lin Zhang
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

SIGNATURE PAGE TO

THIRD AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT

 

 

SCHEDULE OF NOTICE

 

If to Group Companies:

 

	
Address:
    	
Miaopu, #35 Dahuangzhuang, Chaoyang District, Beijing (北京市朝阳区大黄庄苗圃35 号)
    
	
Fax No.:
    	
86 10 85550900
    
	
Tel No.:
    	
86 10 85550966
    
	
Email:
    	
huangshuol@lubaocar.com
    
	
Contact Person: 
    	
Mr. Shuo HUANG (黄硕)
    
			

 

If to Perfect Harmony:

 

	
Address:
    	
Floor 37th, Building B, Tower 3, Wangjing Soho Center, No. 10,
    
	
 
    	
Wangjing Street, Chaoyang District, Beijing (100102) (北京市朝阳区望京街10 号望京SOHO 中心塔三B 段37 层,邮编:100102)
    
	
Fax No.:
    	
(86) 010 5631 2701
    
	
Email:
    	
zengzhen@xin.com
    
	
Contact Person: 
    	
Mr. Then ZENG (曾真)
    
			

 

If to Fengshion Capital:

 

	
Address:
    	
5/F, No.2 Lane 1279, West Zhongshan Road, Changning District,
    
	
 
    	
Shanghai, PRC 上海市长宁区中山西路1279 弄2 号楼5 层
    
	
Tel No.:
    	
(86) 021-62954441
    
	
Email:
    	
charlieg@qq.com
    
	
Contact Person:
    	
Mr. Feng GAO
    
			

 

If to LC:

 

	
Address:
    	
16F, Tower B, Raycom Infotech Park, No. 2 Kexueyuan South
    
	
 
    	
Road, Zhongguancun, Haidian District, Beijing
    
	
Tel No.:
    	
+86 10 8913 9000
    
	
Email:
    	
zhanglina@legendcapital.com.cn
    
	
Contact Person:
    	
张林
    
			

 

 

EXHIBIT A

 

PARTICULARS OF INVESTORS

 

Part I: Particulars of Series A Investor

 

	
Name of Series A Investor
    	
 
    	
Registered Office
    
	
PERFECT HARMONY GROUP LIMITED
    	
 
    	
Sertus Incorporations (BVI) Limited, Sertus   Chambers, P.O. Box 905, Quastisky Building, Road Town, Tortola, British   Virgin Islands.
    

 

Part II: Particulars of Series A1 Investor

 

	
Name of Series Al Investor
    	
 
    	
Registered Office
    
	
PERFECT HARMONY GROUP LIMITED
    	
 
    	
Sertus Incorporations (BVI) Limited, Sertus   Chambers, P.O. Box 905, Quastisky Building, Road Town, Tortola, British   Virgin Islands.
    

 

Part III: Particulars of Series B Investors

 

	
Name of Series B Investor
    	
 
    	
Registered Office
    
	
PERFECT HARMONY GROUP LIMITED
    	
 
    	
Sertus Incorporations (BVI) Limited, Sertus   Chambers, P.O. Box 905, Quastisky Building, Road Town, Tortola, British   Virgin Islands.
    
	
FENGSHION CAPITAL INVESTMENT FUND, LP
    	
 
    	
Maples Corporate Services Limited, P.O. Box   309, Ugland House, Grand Cayman, KY1- 1104, Cayman Islands.
    
	
LC Fund V, L.P.
    	
 
    	
PO Box 309, Ugland House, Grand Cayman, KY1-1104,   Cayman Islands.
    
	
LC Parallel Fund V, L.P.
    	
 
    	
PO Box 309, Ugland House, Grand Cayman, KY1-1104,   Cayman Islands.

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