Document:

Exhibit 10.1

 

WOWO LIMITED
 2011 SHARE INCENTIVE PLAN

 

1.              Purpose of the Plan

 

The purpose of the Plan is to aid the Company and its Affiliates in recruiting and retaining key employees, directors or consultants of outstanding ability and to motivate such employees, directors or consultants to exert their best efforts on behalf of the Company and its Affiliates by providing incentives through the granting of Awards.  The Company expects that it will benefit from the added interest which such key employees, directors or consultants will have in the welfare of the Company as a result of their proprietary interest in the Company’s success.

 

2.              Definitions

 

The following capitalized terms used in the Plan have the respective meanings set forth in this Section:

 

(a)                                 Applicable Laws: All laws, statutes, regulations, ordinances, rules or governmental requirements that are applicable to this Plan or any Award granted pursuant to this Plan, including but not limited to applicable laws of the People’s Republic of China, the United States and the Cayman Islands, and the rules and requirements of any applicable national securities exchange.

 

(b)                                 Act:  The U.S. Securities Exchange Act of 1934, as amended, or any successor thereto.

 

(c)                                  Affiliate:  With respect to the Company, any entity directly or indirectly controlling, controlled by, or under common control with, the Company or any other entity designated by the Board in which the Company or an Affiliate has an interest.

 

(d)                                 Award:  An Option, Restricted Share or Other Share-Based Award granted pursuant to the Plan.

 

(e)                                  Beneficial Owner:  A “beneficial owner”, as such term is defined in Rule 13d-3 under the Act (or any successor rule thereto).

 

(f)                                   Board:  The Board of Directors of the Company.

 

(g)                                  Cause: “Cause” as defined in any employment agreement then in effect between the Participant and the Company or if not defined therein or, if there shall be no such agreement, (i) Participant’s engagement in misconduct which is materially injurious to the Company or its affiliates, (ii) Participant’s continued failure to substantially perform his duties to the Company, (iii) Participant’s repeated dishonesty in the performance of his duties to the Company, (iv) Participant’s commission of an act or acts constituting any (x) fraud against, or misappropriation or embezzlement from the Company or any of its affiliates, (y)

 

 

crime involving moral turpitude, or (z) offense that could result in a jail sentence of at least 30 days or (v) Participant’s material breach of any confidentiality or non-competition covenant entered into between the Participant and the Company.  The determination of the existence of Cause shall be made by the Committee in good faith, which determination shall be conclusive for purposes of this Agreement.

 

(h)                                 Change in Control:  The occurrence of any of the following events:

 

(i) the sale or disposition, in one or a series of related transactions, of all or substantially all, of the assets of the Company to any “person” or “group” (as such terms are defined in Sections 13(d)(3) or 14(d)(2) of the Act) other than the Permitted Holders;

 

(ii) any person or group, other than the Permitted Holders, is or becomes the Beneficial Owner (except that a person shall be deemed to have “beneficial ownership” of all shares that any such person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total voting power of the voting shares of the Company (or any entity which controls the Company), including by way of merger, consolidation, tender or exchange offer or otherwise; or

 

(iii)  during any period of two consecutive years, individuals who at the beginning of such period constituted the Board (together with any new directors whose election by such Board or whose nomination for election by the shareholders of the Company was approved by a vote of a majority of the directors of the Company, then still in office, who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board, then in office.

 

(i)                                     Code:  The U.S. Internal Revenue Code of 1986, as amended, or any successor thereto.

 

(j)                                    Committee:  The Compensation Committee of the Board, or in the absence of such committee, the Board.

 

(k)                                 Company: Wowo Limited, a company incorporated under the laws of the Cayman Islands.

 

(l)                                     “Disability”: “Disability” as defined in any employment agreement then in effect between the Participant and the Company or if not defined therein or if there shall be no such agreement, as defined in the Company’s long-term disability plan as in effect from time to time, or if there shall be no plan or if not defined therein, the Participant’s becoming physically or mentally incapacitated and consequent inability for a period of six (6) months in any twelve (12) consecutive month period to perform his duties to the Company.

 

 

(m)                             Effective Date:  The date the Board approves the Plan, or such later date as is designated by the Board.

 

(n)                                 Employment:  The term “Employment” as used herein shall be deemed to refer to (i) a Participant’s employment if the Participant is an employee of the Company or any of its Affiliates, (ii) a Participant’s services as a consultant, if the Participant is consultant to the Company or its Affiliates and (iii) a Participant’s services as an non-employee director, if the Participant is a non-employee member of the Board.

 

(o)                                 Fair Market Value:  On a given date, (i) if there should be a public market for the Shares on such date, the arithmetic mean of the high and low prices of the Shares as reported on such date on the Composite Tape of the principal national securities exchange on which such Shares are listed or admitted to trading, or, if no sale of Shares shall have been reported on the Composite Tape of any national securities exchange on such date, then the immediately preceding date on which sales of the Shares have been so reported or quoted shall be used, or (ii) if there should not be a public market for the Shares on such date, the Fair Market Value shall be the value established by the Committee in good faith.

 

(p)                                 ISO:  An Option that is also an incentive share option granted pursuant to Section 6(d) of the Plan.

 

(q)                                 Other Share-Based Awards:  Awards granted pursuant to Section 8 of the Plan.

 

(r)                                    Option:  A share option granted pursuant to Section 6 of the Plan.

 

(s)                                   Option Price:  The purchase price per Share of an Option, as determined pursuant to Section 6(a) of the Plan.

 

(t)                                    Participant:  An employee, director or consultant who is selected by the Committee to participate in the Plan.  To the extent required by Applicable Laws, Awards may be limited to employees and officers or employees and directors.

 

(u)                                 Permitted Holder: means, as of the date of determination, (i) the Company or (ii) any employee benefit plan (or trust forming a part thereof) maintained by (A) the Company or (B) any corporation or other Person of which a majority of its voting power of its voting equity securities or equity interest is owned, directly or indirectly, by the Company.

 

(v)                                 Person:  A “person”, as such term is used for purposes of Section 13(d) or 14(d) of the Act (or any successor section thereto).

 

(w)                               Plan:  This Wowo Limited 2011 Share Incentive Plan.

 

(x)                                 Restricted Share:  A Restricted Share granted pursuant to Section 7 of the Plan.

 

(y)                                 Shares:  Ordinary shares of the Company.

 

 

(z)                                  Subsidiary:  A corporation or other entity of which a majority of the outstanding voting shares or voting power is beneficially owned directly or indirectly by the Company.

 

(y)                                 Vested Portion: The portion of the Option which has become vested and exercisable.

 

3.              Shares Subject to the Plan

 

The total number of Shares which may be issued under the Plan, when aggregated with any Shares issued or issuable upon the exercise of all of the Awards granted under the Plan, shall not exceed 10% of the issued and outstanding share capital of the Company from time to time (subject to adjustment for share splits, reverse share splits or similar events as set forth in Section 9 hereof).  The Shares may consist, in whole or in part, of authorized and unissued Shares, treasury Shares or Shares purchased on the open market.  The issuance of Shares or the payment of cash upon the exercise of an Award or in consideration of the cancellation or termination of an Award shall reduce the total number of Shares available under the Plan, as applicable.  Shares which are subject to Awards which terminate or lapse without the payment of consideration may be granted again under the Plan.

 

4.              Administration

 

The Plan shall be administered by the Committee, which may delegate its duties and powers in whole or in part to any subcommittee thereof consisting solely of at least two individuals who are intended to qualify as “Non-Employee Directors” within the meaning of Rule 16b-3 under the Act (or any successor rule thereto) and an “independent director” as defined in NYSE Rule 303A.02 Independence Tests (or any successor rule thereto).  Notwithstanding the foregoing, at any time prior to the date on which any equity interests of the Company, including, without limitation, the Shares, have been registered under the Act or any other securities laws, members of the current Board, as of the date hereof, may approve and authorize the Company to make an Award to other members of the Board under the Plan (provided the recipient Board member shall not vote with respect to such Award), and, prior to such registration, the current Board may approve and authorize the Company to make Awards under the Plan to any other employees, directors or consultants of the Company or any of its Affiliates.  Awards may, in the discretion of the Committee, be made under the Plan in assumption of, or in substitution for, outstanding awards previously granted by the Company or its affiliates or a company acquired by the Company or with which the Company combines.  The number of Shares underlying such substitute awards shall be counted against the aggregate number of Shares available for Awards under the Plan.  The Committee is authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan.  The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or desirable.  Any decision of the Committee in the interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their  beneficiaries or successors).  The Committee shall have the full power and authority to establish 

 

 

the terms and conditions of any Award consistent with the provisions of the Plan and to waive any such terms and conditions at any time (including, without limitation, accelerating or waiving any vesting conditions).  The Committee shall require payment of any amount it may determine to be necessary to withhold for any applicable taxes as a result of the exercise, grant or vesting of an Award.  Unless the Committee specifies otherwise, the Participant may elect to pay a portion or all of such withholding taxes by (a) delivery in Shares or (b) having Shares withheld by the Company from any Shares that would have otherwise been received by the Participant.

 

5.              Limitations

 

No Award may be granted under the Plan after the fifth anniversary of the Effective Date, but Awards theretofore granted may extend beyond that date.

 

6.              Terms and Conditions of Options

 

Options granted under the Plan shall be, as determined by the Committee, non-qualified or incentive share options for U.S. federal income tax purposes, as evidenced by the related Award agreements, and shall be subject to the foregoing and the following terms and conditions and to such other terms and conditions, not inconsistent therewith, as the Committee shall determine:

 

(a)                                 Option Price.  The Option Price per Share shall be determined by the Committee, and unless specifically approved by the Board of Directors of the Company, shall not be less than 100% of the Fair Market Value of the Shares on the date an Option is granted.

 

(b)                                 Vesting.

 

If the Participant’s Employment with the Company is terminated for any reason, the Option shall, to the extent not then vested, be canceled by the Company without consideration and the Vested Portion of the Option shall remain exercisable for the period set forth in Section 6(c).

 

Notwithstanding any other provisions of this Agreement to the contrary, the Option shall, to the extent not then vested and not previously canceled, become fully vested and exercisable immediately prior to a Change in Control.

 

(c)                                  Exercisability.  Options granted under the Plan shall be exercisable at such time and upon such terms and conditions as may be determined by the Committee, but in no event shall an Option be exercisable more than five years after the date it is granted.

 

Subject to the provisions of the Plan, the Participant may exercise all or any part of the Vested Portion of the Option at any time prior to the earliest to occur of:

 

(i)                                     the fifth anniversary of the Date of Grant;

 

(ii)                                  one year following the date of the Participant’s termination of 

 

 

Employment due to death or “Disability”;

 

(iii)                               six months following the date of the Participant’s termination of Employment by the Company without “Cause”; and

 

(iv)                              the date of the Participant’s termination of Employment by the Company for “Cause” or by the Participant for any reason.

 

(d)                                 Exercise of Options.  Except as otherwise provided in the Plan or in an Award agreement, an Option may be exercised for all, or from time to time any part, of the Shares for which it is then exercisable.  For purposes of Section 6 of the Plan, the exercise date of an Option shall be the later of the date a notice of exercise is received by the Company and, if applicable, the date payment is received by the Company pursuant to clauses (i), (ii), (iii) or (iv) in the following sentence.  The purchase price for the Shares as to which an Option is exercised shall be paid to the Company in full at the time of exercise at the election of the Participant  (i) in cash or its equivalent (e.g., by check), (ii) to the extent permitted by the Committee, in Shares having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee; provided, that such Shares have been held by the Participant for no less than six months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment applying generally accepted accounting principles), (iii) partly in cash and, to the extent permitted by the Committee, partly in such Shares or (iv) if there is a public market for the Shares at such time, through the delivery of irrevocable instructions to a broker to sell Shares obtained upon the exercise of the Option and to deliver promptly to the Company an amount out of the proceeds of such Sale equal to the aggregate Option Price for the Shares being purchased.  No Participant shall have any rights to dividends or other rights of a shareholder with respect to Shares subject to an Option until the Participant has given written notice of exercise of the Option, paid in full for such Shares and, if applicable, has satisfied any other conditions imposed by the Committee pursuant to the Plan.

 

Notwithstanding any other provision of the Plan to the contrary, the Option may not be exercised prior to the completion of any registration or qualification of the Option or the Shares under applicable U.S. federal and state securities or other laws, or under any ruling or regulation of any governmental body or national securities exchange that the Committee shall in its sole discretion determine to be necessary or advisable.

 

 

In the event of the Participant’s death, the Vested Portion of the Option shall remain exercisable by the Participant’s executor or administrator, or the person or persons to whom the Participant’s rights shall pass by will or by the laws of descent and distribution as the case may be, to the extent set forth in this Plan.  Any heir or legatee of the Participant shall take rights herein granted subject to the terms and conditions hereof.

 

(e)                                  ISOs.  The Committee may grant Options under the Plan that are intended to be ISOs.  Such ISOs shall comply with the requirements of Section 422 of the Code (or any successor section thereto).  No ISO may be granted to any Participant who at the time of such grant, owns more than ten percent of the total combined voting power of all classes of shares of the Company or of any Subsidiary, unless (i) the Option Price for such ISO is at least 110% of the Fair Market Value of a Share on the date the ISO is granted and (ii) the date on which such ISO terminates is a date not later than the day preceding the fifth anniversary of the date on which the ISO is granted.  Any Participant who disposes of Shares acquired upon the exercise of an ISO either (i) within two years after the date of grant of such ISO or (ii) within one year after the transfer of such Shares to the Participant, shall notify the Company of such disposition and of the amount realized upon such disposition.  All Options granted under the Plan are intended to be nonqualified share options, unless the applicable Award agreement expressly states that the Option is intended to be an ISO.  If an Option is intended to be an ISO, and if for any reason such Option (or portion thereof) shall not qualify as an ISO, then, to the extent of such nonqualification, such Option (or portion thereof) shall be regarded as a nonqualified share option granted under the Plan; provided that such Option (or portion thereof) otherwise complies with the Plan’s requirements.  In no event shall any member of the Committee, the Company or any of its Affiliates (or their respective employees, officers or directors) have any liability to any Participant (or any other Person) due to the failure of an Option to qualify for any reason as an ISO.

 

(f)                                   Attestation.  Wherever in this Plan or any agreement evidencing an Award a Participant is permitted to pay the exercise price of an Option or taxes relating to the exercise of an Option by delivering Shares, the Participant may, subject to procedures satisfactory to the Committee, satisfy such delivery requirement by presenting proof of beneficial ownership of such Shares, in which case the Company shall treat the Option as exercised without further payment and shall withhold such number of Shares from the Shares acquired by the exercise of the Option.

 

7.              Terms and Conditions of Restricted Shares

 

(a)                                 Grants.  Restricted Shares may be granted in the form of Shares or share units having a value equal to an identical number of Shares.  The employment conditions and the length of the period for vesting of Restricted Shares shall be established by the Committee at time of grant.  In the event that a share certificate is issued in respect of Restricted Shares,

 

 

such certificate shall be registered in the name of the Participant but shall be held by the Company until the end of the restricted period.  During the restricted period, Restricted Shares may not be sold, assigned, transferred or otherwise disposed of, or pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or for any other purpose as the Committee shall determine.

 

(b)                                 Terms.  The Committee shall determine in its sole discretion whether Restricted Shares granted in the form of share units shall be paid in cash, Shares, or a combination of cash and Shares.

 

8.              Other Share-Based Awards

 

The Committee, in its sole discretion, may grant or sell Awards of Shares and Awards that are valued in whole or in part by reference to, or are otherwise based on the Fair Market Value of, Shares (“Other Share-Based Awards”).  Such Other Share-Based Awards shall be in such form, and dependent on such conditions, as the Committee shall determine, including, without limitation, the right to receive, or vest with respect to, one or more Shares (or the equivalent cash value of such Shares) upon the completion of a specified period of service, the occurrence of an event and/or the attainment of performance objectives.  Other Share-Based Awards may be granted alone or in addition to any other Awards granted under the Plan.  Subject to the provisions of the Plan, the Committee shall determine to whom and when Other Share-Based Awards will be made, the number of Shares to be awarded under (or otherwise related to) such Other Share-Based Awards; whether such Other Share-Based Awards shall be settled in cash, Shares or a combination of cash and Shares; and all other terms and conditions of such Awards (including, without limitation, the vesting provisions thereof and provisions ensuring that all Shares so awarded and issued shall be fully paid and non-assessable).

 

9.              Adjustments Upon Certain Events

 

Notwithstanding any other provisions in the Plan to the contrary, the following provisions shall apply to all Awards granted under the Plan:

 

(a)                                 Generally.  In the event of any change in the outstanding Shares after the Effective Date by reason of any Share dividend or split, reorganization, recapitalization, merger, consolidation, spin-off, combination, combination or transaction or exchange of Shares or other corporate exchange, or any distribution to shareholders of Shares other than regular cash dividends or any transaction similar to the foregoing, the Committee in its sole discretion and without liability to any person shall make such substitution or adjustment, if any, as it deems to be equitable, as to (i) the number or kind of Shares or other securities issued or reserved for issuance pursuant to the Plan or pursuant to outstanding Awards, (ii) the maximum number of Shares for which Options or Restricted Shares may be granted during a calendar year to any Participant, (iii) the maximum number of Shares for which Other Share-Based Awards may be granted during a calendar year to any Participant, (iv) the maximum amount of an

 

 

Award that is valued in whole or in part by reference to, or is otherwise based on the Fair Market Value of, Shares that may be granted during a calendar year to any Participant, (v) the Option Price or number of Restricted Share and/or (vi) any other affected terms of such Awards.

 

(b)                                 Change in Control. In the event of a Change of Control after the Effective Date, (i) if determined by the Committee in the applicable Award agreement or otherwise, any outstanding Awards then held by Participants which are unexercisable or otherwise unvested or subject to lapse restrictions shall automatically be deemed exercisable or otherwise vested or no longer subject to lapse restrictions, as the case may be, as of immediately prior to such Change of Control and (ii) the Committee may, but shall not be obligated to, (x) cancel such Awards for fair value (as determined in the sole discretion of the Committee) which, (A) in the case of Options, may equal the excess, if any, of value of the consideration to be paid in the Change of Control transaction to holders of the same number of Shares subject to such Options (or, if no consideration is paid in any such transaction, the Fair Market Value of the Shares subject to such Options) over the aggregate exercise price of such Options or (B) in the case of Restrict Shares, may equal the value of the consideration to be paid in the Change of Control transaction to holders of the same number of Shares (or, if no consideration is paid in any such transaction, the Fair Market Value of the Restricted Shares) or (y) provide for the issuance of substitute Awards that will substantially preserve the otherwise applicable terms of any affected Awards previously granted hereunder as determined by the Committee in its sole discretion or (z) provide that for a period of at least 15 days prior to the Change of Control, such Options shall be exercisable as to all shares subject thereto and that upon the occurrence of the Change of Control, such Options shall terminate and be of no further force and effect.

 

10.       No Right to Employment or Awards

 

The granting of an Award under the Plan shall impose no obligation on the Company or any Affiliate to continue the Employment of a Participant and shall not lessen or affect the Company’s or Affiliate’s right to terminate the Employment of such Participant.  No Participant or other Person shall have any claim to be granted any Award, and there is no obligation for uniformity of treatment of Participants, or holders or beneficiaries of Awards.  The terms and conditions of Awards and the Committee’s determinations and interpretations with respect thereto need not be the same with respect to each Participant (whether or not such Participants are similarly situated).

 

11.       Successors and Assigns

 

The Plan shall be binding on all successors and assigns of the Company and a Participant, including without limitation, the estate of such Participant and the executor,

 

 

administrator or trustee of such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors.

 

12.       Nontransferability of Awards

 

Unless otherwise determined by the Committee, an Award shall not be transferable or assignable by the Participant otherwise than by will or by the laws of descent and distribution.  An Award exercisable after the death of a Participant may be exercised by the legatees, personal representatives or distributees of the Participant. No such permitted transfer of the Option to heirs or legatees of the Participant shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof.  During the Participant’s lifetime, the Option is exercisable only by the Participant.

 

13.       Securities Laws

 

Upon the acquisition of any Shares pursuant to the exercise of the Option, the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Agreement.

 

14.       Legend on Certificates.

 

The certificates representing the Shares purchased by exercise of the Option shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable U.S. federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

15.       Withholding

 

The Participant may be required to pay to the Company or any Affiliate and the Company shall have the right and is hereby authorized to withhold, any applicable withholding taxes in respect of the Option, its exercise or any payment or transfer under or with respect to the Option and to take such other action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes.

 

16.       Amendments or Termination

 

The Board may amend, alter or discontinue the Plan, but no amendment, alteration or discontinuation shall be made, (a) without the approval of the shareholders of the Company, if such action would (except as is provided in Section 9 of the Plan), increase the total number of Shares reserved for the purposes of the Plan or change the maximum number of Shares for which Awards may be granted to any Participant or (b) without the consent of a Participant, if such action would diminish any of the rights of the Participant under any Award

 

 

theretofore granted to such Participant under the Plan; provided, however, that the Committee may amend the Plan in such manner as it deems necessary to permit the granting of Awards meeting the requirements of any Applicable Laws.

 

Without limiting the generality of the foregoing, to the extent applicable, notwithstanding anything herein to the contrary, this Plan and Awards issued hereunder shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretative guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date.  Notwithstanding any provision of the Plan to the contrary, in the event that the Committee determines that any amounts payable hereunder will be taxable to a Participant under Section 409A of the Code and related Department of Treasury guidance prior to payment to such Participant of such amount, the Company may (a) adopt such amendments to the Plan and Awards and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Committee determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder and/or (b) take such other actions as the Committee determines necessary or appropriate to comply with the requirements of Section 409A of the Code.

 

17.       Jurisdictions

 

In order to assure the viability of Awards granted to Participants employed in various jurisdictions, the Committee may, in its sole discretion, may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy or custom applicable in the jurisdiction in which the Participant resides or is employed.  Moreover, the Committee may approve such supplements to, amendments, restatements, or alternative versions of the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in effect for any other purpose; provided, however, that no such supplements, restatements or alternative versions shall increase the Share limitation contained in Section 3 hereof.  Notwithstanding the foregoing, the Committee may not take any actions hereunder, and no Awards shall be granted that would violate any Applicable Laws.

 

18.       Distribution of Shares

 

The obligation of the Company to make payments in Shares pursuant to an Award shall be subject to all Applicable Laws and to any such approvals by government agencies as may be required.  Without limiting the generality of the foregoing, Shares distributed pursuant to an Award may consists, in whole or in part, of authorized and unissued Shares, treasury Shares or Shares purchased on the open market.  Additionally, in the discretion of the Committee, American Depository Shares may be distributed in lieu of Shares in settlement of any Award, provided that the American Depository Shares shall be of equal value to the Shares that would have otherwise been distributed.  If the number of Shares represented by an American Depository Share is other than on a one-to-one basis, the limitations of Section 3 shall be adjusted to reflect the distribution of American Depository Shares in lieu of Shares.

 

 

19.       Taxes

 

No Shares shall be delivered under the Plan to any Participant until such Participant has made arrangements acceptable to the Committee for the satisfaction of any income and employment tax withholding obligations under any Applicable Laws, in particular, the tax laws, rules, regulations and government orders of the People’s Republic of China or the U.S. federal, state or other local tax laws, as applicable.  The Company and each of its Subsidiaries shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local and foreign taxes (including the Participant’s payroll tax obligations, if any) required to be withheld under any Applicable Laws with respect to any Award issued to the Participant hereunder.  The Committee may in its discretion and in satisfaction of the foregoing requirement allow a Participant to elect to have the Company withhold Shares otherwise issuable under an Award (or allow the return of Shares) having a Fair Market Value equal to the sums required to be withheld.  Notwithstanding any other provision of the Plan, the number of Shares which may be withheld with respect to the issuance, vesting, exercise or payment of any Award (or which may be repurchased form the Participant of such Award after such Shares were acquired by the Participant from the Company) in order to satisfy the Participant’s federal, state, local and other income and payroll tax liabilities with respect to the issuance, vesting, exercise or payment of the Award shall, unless specifically approved by the Committee, be limited to the number of Shares which have a Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal, state, local and other income tax any payroll tax purposes that are applicable to such taxable income.

 

20.       Choice of Law

 

The Plan shall be governed by and construed in accordance with the laws of the state of New York.

 

21.       Effectiveness of the Plan

 

The Plan shall be effective as of the Effective Date and shall terminate five years later, subject to earlier termination by the Board pursuant to Section 13 hereof.Exhibit 10.4

 

AMENDED AND RESTATED EXCLUSIVE CALL OPTION AGREEMENT

 

This Exclusive Call Option Agreement (this “Agreement”) is entered into as of August 6th, 2014 in Beijing, People’s Republic of China (“PRC”) by and between the following Parties:

 

Party A: Beijing Wowo Shijie Information Technology Co., Ltd

Address: Room 107, First Floor, South side of No.27 building, Zaoying Beili, Chaoyang District, Beijing.

 

Party B:

 

Maodong Xu:

Residence: People’s Republic of China

 

Hanyu Liu:

Residence: People’s Republic of China

(In this Agreement, Maodong Xu and Hanyu Liu are collectively as the “Party B”)

 

Party C: Beijing Wowo Tuan Information Technology Co., Ltd.

Address: Room 3001, Third Floor, No.18, Shang Di Xinxi Road, Haidian District, Beijing.

 

(In this agreement, all the above parties are called collectively as the “Parties” and respectively as a “Party”)

 

Whereas,

 

1.                   Party A is a wholly foreign owned company duly incorporated and existing under the laws of the PRC.

 

2.                   Party C is a limited liability company duly incorporated and validly existing under the PRC laws. Party B holds whole equity interests of Party C, of which Maodong Xu holds 95% equity interests and Hanyu Liu holds 5% equity interests.;

 

3.                   The parties have entered into an Amended and Restated Equity Pledge Agreement (“the Amended and Restated Equity Pledge Agreement”) on August 6th, 2014.

 

4.                   Party A and Party B entered into an “Exclusive Call Option Agreement” (“the original exclusive call option agreement”) on August 22nd, 2012. The Parties agree to restate and amend the terms and conditions of the original exclusive call option agreement, to supersede the original exclusive call option agreement.

 

 

NOW, THEREFORE, the Parties hereby agree as follows through amicable consultation:

 

1. Grant of Exclusive Equity Call Option

 

1.1 Call Option

 

Party B irrevocably agree hereby to grant jointly and severally to Party A or one or more persons designated by Party A, to the extent permitted by the PRC laws and regulations, the Option subject to the terms and conditions set forth in this Agreement to purchase all or part of the Shares at the Share Purchase Price (as defined in Article 3.2 hereunder) based on its needs in accordance with the procedures determined by Party A.

 

1.2 Effectiveness

 

This Agreement shall take effect as of the date of the execution by the Parties or their respective authorized representatives.

 

2. Exercise of Exclusive Call Option

 

2.1 Time of Exercise

 

2.1.1                    Each of Party B agrees that Party A may at any time, and from time to time after the effective date hereof, exercise the Option, in whole or in part, to acquire all or a portion of the Shares, subject only to applicable laws of the PRC.

 

2.1.2                    For the avoidance of doubt, each of Party B hereby agrees that Party A shall be entitled to exercise the Option for an unlimited number of times, until all of the Shares have been acquired by Party A.

 

2.1.3                    Party B agree that when exercising the Option, Party A may designate itself or any authorized third party as the transferee of the Shares.

 

2.2 Transfer

 

Party B agree that the Option shall be freely transferable, in whole or in part, by Party A to any third party, and that upon such transfer, the Option may be exercised by such third party upon the terms and conditions set forth herein, as if such third party were a party to this Agreement, and that such third party shall assume the rights and obligations of Party A hereunder.

 

 

2.3 Notice Requirement

 

If Party A wishes to exercise the Option, it shall send a written notice to each of Party B by no later than thirty (30) days in advance of such exercise, specifying therein:

 

2.3.1 The date of execution of the Share Transfer Agreement (as defined in Article 3.1 hereunder);

 

2.3.2 The name of the person to whom the Shares shall be transferred;

 

2.3.3 The amount of the Shares to be purchased from each of Party B;

 

2.3.4 The Share Purchase Price (as defined in Article 3.2 hereunder) of the Shares to be transferred this time, which shall be defined pursuant to the Proportion of the Shares to be purchased; and

 

2.3.5 a letter of authorization, where a third party has been designated to exercise the Option.

 

2.4 Set-off

 

Party B entered into an Amended and Restated equity pledge agreement with Party A as of the even date hereof, in which Party B assign Party A pledge over the Shares. After each exercise of the Option and the consequent transfer of the Shares, the pledge over the Shares transferred will disappear, and the Shares in pledge will be reduced in the same proportion.

 

3. Completion of Exclusive Call Option

 

3.1                       Share Transfer Agreement

 

Party B shall execute a share transfer agreement in form and substance substantially the same as the annex attached hereto (the “Share Transfer Agreement”), together with any other documents necessary to give effect to the transfer to Party A or its nominee of all or part of the Shares within thirty (30) days after Party A’s sending the written notice in accordance with Article 2.3 above.

 

3.2                       Share Purchase Price

 

The share purchase price to be paid by Party A or its nominee when exercising the Option under this Agreement, shall be the minimum price allowable by the PRC laws, unless otherwise required by PRC laws or agreed in writing by the 

 

 

Parties.

 

3.3                       Waiver of the Priority Purchase Right

 

Upon an exercise of the Option by Party A and Party B hereby undertake separately and/or jointly that they waive the priority purchase right they enjoy to the Shares transferred.

 

3.4                       Shareholders’ Resolution

 

Upon an exercise of the Option by Party A and Party B shall execute and deliver one or more resolutions of the shareholders’ meeting of Party C (“Resolutions”) within thirty (30) days after the execution of the Share Transfer Agreement, approving, including but not limited to, the following:

 

3.4.1 The transfer in the name of Party A or its nominee of all or part of the Shares; and/or

 

3.4.2             Upon the request by Party A, resignation by Party B from the position of directors and/or other positions.

 

4. Representations, Warranties and Undertakings

 

4.1 Representations and Warranties

 

4.1.1                     Each of the Parties severally represents and warrants to each other that:

 

(1)                                It has the full power and authority to enter into this Agreement;

 

(2)                                Its signing of this Agreement or fulfilling of any of its obligations hereunder does not violate any laws, regulations and contracts to which it is bound, or require any government authorization or approval;

 

(3)                                There is no lawsuit, arbitration or other legal or government procedures pending which, based on its knowledge, shall materially and adversely affect this Agreement and the performance thereof;

 

(4)                                It has disclosed to other Parties all documents issued by any government department that might cause a material adverse effect on the performance of its obligations under this Agreement;

 

 

4.2 Undertakings

 

4.2.1 Each of Party B separately and jointly covenants and undertakes to Party A that:

 

(1)    It will complete all such formalities as are necessary to make Party A or its nominee a full and proper shareholder of Party C. Such formalities include, but are not limited to, revising the Articles of Association of Party C, changing the list of shareholders and undertaking any other changes at the relevant administrative department of industry and commerce.

 

(2)    For a period as from the date hereof until two (2) years after the date on which all of the Shares are acquired by Party A:

 

(a)   except operating Party C or the business invested or controlled by Party C, or employed by Party A or other PRC companies invested or controlled by Wowo Limited (if applicable), it will not, either directly or indirectly, engage or be engaged in business which is the same or similar to that of Party C within the PRC or any other jurisdictions wherein Party C operates;

 

(b)   it will not take employment with any person who is engaged by Party C or Party A, or with any person directly or indirectly assisting any such person with technical, commercial or professional advice, except that such person is employed by Party C the business invested or controlled by Party C, Party A or other PRC companies invested or controlled by Wowo Limited;

 

(c)   it will not be engaged or otherwise involved as principal, shareholder, employee or agent, whether directly or indirectly, in any company, firm or business which, with regards to any goods or services, is supplier to or a customer of Party C or Party A, except for the business invested or controlled by Party C, Party A or other PRC companies invested or controlled by Wowo Limited; and

 

(d)   it will not at any time either on its own account or for any person solicit business from any person who has dealt with Party C or Party A.

 

(3) Party B and Party C hereby further undertake to Party A that it will cause Party C:

 

(a) to keep validly existing and prudently and effectively operate its business and handle related corporate affairs following good commercial and business standards and practices; endeavor to 

 

 

ensure itself keep holding its licenses, certificates and approvals as requisite for its business operations, and keep such licenses, certificates and approvals from being revoked; and endeavor to keep the current corporate structure and senior managements, and maintain the relationships with its customers to ensure Party C’s reputation and operation will not be materially or adversely affected upon the exercise of the Option hereunder by Party A or its nominee;

 

(b) Without prior written consent of Party A, not to increase or decrease its registered capital of Party C, or change the capital structure in any other form;

 

(c)  Without prior written consent of Party A, not to revise its articles of association or other constituent documents with respect to its material matters, including but not limited to its organization structure, internal institutions and authority, registered capital changes, share transfers, voting rules and matters;

 

(d) Without the prior written consent by Party A, not to affirmatively vote for, support or execute any shareholders’ resolution at Party C’s shareholders’ meeting to approve to sell, transfer, pledge or otherwise dispose of the legitimate or other beneficial interest in the equity interests of Party C, nor to allow other security interests to be created on it, except the pledge right set on Party C’s equity interests pursuant to Amended and Restated Equity Pledge Agreement;

 

(e) without prior written consent of Party A, not to sell, transfer, mortgage or otherwise dispose of any asset, income, legitimate or beneficial interests in its business, or allow creation of any other security interest at any time as from the date hereof, except the pledge right set on Party C’s equity interests pursuant to Amended and Restated Equity Pledge Agreement;

 

(f) without prior written consent of Party A, not to inherit, guarantee or allow the existence of any debt, with the exception of (i) the debts incurred during the ordinary or daily course of business, and (ii) the debts which have been disclosed to Party A and for which written consents from Party A have been obtained;

 

(g) to normally operate businesses to maintain its assets value, and not to result in any materially adverse affect on its business operation and the value of its assets by any acts or omissions; and without prior written consent of Party A, not to change its businesses in any material respect;

 

 

(h) without prior written consent of Party A, not to enter into any material agreement except for the agreements entered into during the ordinary course of business (for the purpose of this section,  an agreement or a series of related agreements should be deemed as a material agreement if the amount of which exceeds RMB 2,000,000);

 

(i) without prior written consent of Party A, not to provide any loan, credit or guarantee to anyone;

 

(j) At the request of Party A, to provide all materials related to its business and financial conditions to Party A;

 

(k) Without the prior written consent by Party A, not to affirmatively vote for, support or execute any shareholders’ resolution at Party C’s shareholders’ meeting to approve Party C’s merger or combination with any person, acquisition by any person, or Party C’s acquisition of or investment in any person;

 

(l) To promptly inform Party A of any existing or potential litigation,   arbitration, or administrative proceedings in relation to its assets, business or revenues;

 

(m) In order to keep the ownership of the equity interest held by Party B and/or Party C, to execute all requisite or appropriate documents, conduct all requisite or appropriate actions, and make all requisite or appropriate claims, or make requisite or appropriate defense against all claims;

 

(n) in order to maintain its ownership of all its assets, to execute all necessary or appropriate documents, commence all necessary or appropriate claims, or make all necessary or proper defenses to all claims;

 

(o) without prior written consent of Party A, not to distribute any dividends to its shareholders in any form, nevertheless upon request of Party A, immediately to distribute all payable dividends to the shareholders; and

 

(p) To cause Party C’s shareholders’ meeting to vote affirmatively for the transfer of the Purchased Equity Interest stipulated hereunder;

 

 

(q) Subject to the Power of Attorney executed by Party B on August 6th, 2014, to exercise any and all the rights as Party C’s shareholder only upon the request by Party A and only upon Party A’s written authorization; and

 

(r) At the request of Party A, to appoint the person designated by Party A to be its executive director;

 

(s) To strictly comply with the provisions of this Agreement and other agreements jointly or severally executed by Party B, Party C and Party A, and to duly perform all obligations under such agreements, without taking any act or omission that suffices to affect the validity and enforceability of these agreements.

 

5. Default Liabilities

 

The Parties agree and confirm that, if any Party (the “Defaulting Party”) breaches any of the provisions herein, or fails to perform or delays in the performance of any obligation under this Agreement in any material aspect, such breach, failure or delay shall constitute a default under this Agreement (the “Default”), and the non-defaulting Party (the “Non-defaulting Party”) is entitled to require the Defaulting Party to rectify such Default or take remedial measures within a reasonable period of time. If the Defaulting Party fails to rectify such Default or take any remedial measures within reasonable period of time or within ten (10) days upon receipt of the written notice of the Non-defaulting Party, the Non-defaulting Party is entitled to decide, at its sole discretion as follows: (1) If the Defaulting Party is Party B, Party A is entitled to terminate this Agreement and claim damages from the Defaulting Party; (2) If the Defaulting Party is Party A, the Non-defaulting Party is entitled to claim damages from the Defaulting Party; however, the Non-defaulting Party may not terminate this Agreement in any event unless otherwise provided under the laws.

 

6. Governing Law and Dispute Resolution

 

6.1 This Agreement’s execution, interpretation, and performance, and the disputes resolution under this Agreement shall be governed by the PRC laws.

 

6.2 Any disputes arising from or relating to this Agreement shall be resolved through consultation by the Parties. In case of a failure to reach an agreement through consultations within thirty (30) days of their occurrence, each Party can submit the disputes to China International Economics and Trade Arbitration Commission for arbitration in accordance with its Arbitration Rules in effect at the time of the 

 

 

arbitration. The arbitration shall be held in Beijing and the language used will be Chinese. The arbitral award shall be final and binding upon the Parties.

 

7. Effectiveness and Term

 

This Agreement takes effect as of the date when it is signed by the Parties. Upon its effectiveness, the Agreement shall supersede the prior “exclusive call option agreement” that the Parties have signed. The term of this Agreement is ten (10) years. This Agreement shall be extended upon Party A’s written confirmation prior to the expiration of this Agreement and the extended term shall be determined by Party A.

 

8. Termination of the agreement

 

8.1 At any time within the term hereof, in case Party A is unable to exercise the option hereof because of the then-applicable laws, Party A may, at its sole discretion, unconditionally terminate this Agreement by notifying Party B in writing within thirty (30) days, without assuming any liabilities there from.

 

8.2 Except under circumstances indicated in Article 8.1, Party B shall not have the right to unilaterally dissolve this Agreement at any time during the term and extension periods of this Agreement.

 

9. Costs and Other Expenses

 

All actual expenses related to prepare, sign and implement this Agreement, including but not limited to the stamp duty, any other taxes and etc., shall be assumed by the Parties respectively.

 

10. Confidentiality

 

10.1 Whether this Agreement is terminated or not, either party (“receiving party”) shall be obliged to keep in strict confidence the commercial secrets and proprietary information of the other Party acquired during the performance of this Agreement, the Customer Information jointly owned by both Parties and any unpublished information of the other Party (collectively, the “Confidential Information”). The receiving party of the Confidential Information shall not disclose the Confidential Information or any part thereof to any third parties unless it obtains prior written consent of the other Party, or is required by relevant laws and regulations or must to meet the requirements of relevant stock exchange. The aforesaid clauses are not applied for the information that: (a) is obtained legally by the receiving party before the disclosing party has disclosed it which has written proof; (b) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (c) is obtained by receiving 

 

 

party from the third party who has not obliged to keep in confidence.

 

10.2 If any party requires disclose the materials regarding the transaction contemplated hereunder to its legal counsels or financial advisors, these parties shall be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the staff members or agencies hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Agreement.

 

10.3 Notwithstanding any other provisions herein, the validity of this Article shall survive the suspension or termination of this Agreement.

 

11. Miscellaneous

 

11.1 No amendment or modification to this Agreement shall be valid unless made in writing and executed by the Parties.

 

11.2 Any appendices attached hereto shall be an integral part of this Agreement and equally authentic as this Agreement.

 

11.3 Notices

 

11.3.1 Unless otherwise designated by the other Party, any notices of other correspondences among the Parties in connection with the performance of this Agreement shall be delivered in person, by express mail, e-mail, facsimile or registered mail to the following correspondence addresses:

 

If to the Party A: Beijing Wowo Shijie Information Technology Co., Ltd.

Address:  Room 107, First Floor, South side of No.27 building, Zaoying Beili, Chaoyang District, Beijing.

ZIP Code: 100101

Contact Person: Maodong Xu

 

If to the Party B: Hanyu Liu

 

If to Party C: Beijing Wowo Tuan Information Technology Co., Ltd.

Address:  Room 3001, Third Floor, No.18, Shang Di Xinxi Road, Haidian District, Beijing.

ZIP Code: 100085

Contact Person: Tiezheng Liu

 

11.3.2 Notices and correspondences shall be deemed to have been effectively delivered:

 

 

(1)           At the exact time displayed in the corresponding transmission record, if delivered by facsimile, unless such facsimile is sent after 5:00 pm or on a non-business day in the place where it is received, in which case the date of receipt shall be deemed to be the following business day;

 

(2)           On the date that the receiving Party signs for the document if delivered in person (including express mail);

 

(3)           On the fifteenth (15th) day after the date shown on the registered mail receipt, if sent by registered mail;

 

(4)           On the successful printing by the sender of a transmission report evidencing the delivery of the relevant e-mail, if sent by e-mail.

 

11.4 This Agreement shall be binding on the successors of the Parties and the assigns as designated by Party A.

 

11.5 The Parties may, upon mutual agreement, conclude supplementary agreements regarding any issues not covered in this Agreement. The supplementary agreements shall be of equal force with this Agreement.

 

11.6 This Agreement shall be made in Chinese version with English translation enclosed. In case of discrepancies between the two versions, the Chinese version shall prevail. This Agreement shall be executed in 6 originals, including three (3) original copies to be held by Party A, two (2) by Party B, another one (1) to be held by Party C

 

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IN WITNESS HEREOF, the Parties have caused this Amended and Restated Exclusive Call Option Agreement to be executed on the date and at the place first above written.

 

	
Party A: Beijing Wowo   Shijie Information Technology Co., Ltd. (Seal)
    
	
Authorized   Representative (Signature):
    	
/s/ Maodong Xu
    	
 
    

 

	
Party B:
    	
 
    
	
Maodong Xu (Signature):
    	
/s/ Maodong Xu
    	
 
    
				

 

	
Hanyu   Liu (Signature):
    	
/s/ Hanyu Liu
    	
 
    

 

	
Party C: Beijing Wowo   Tuan Information Technology Co., Ltd. ( Seal)
    
	
Authorized   Representative (Signature):
    	
/s/ Maodong Xu
    	
 
    

 

 

APPENDIX

 

SHARE TRANSFER AGREEMENT

 

THIS SHARE TRANSFER AGREEMENT (this “Agreement”) is entered into as of [                ] in Beijing by and between the following parties:

 

Transferor: Name: [ ]

 

ID No.: [ ]

 

Transferee:  Beijing Wowo Shi Jie Information Technology Co., Ltd. (the “Transferee”)

 

(the Transferors and the Transferee collectively the “Parties”)

 

WHEREAS

 

(1)                       The Transferors holds [ ] % shares in [ ].

 

(2)                       The Transferor desires to transfer to the Transferee all his/her [ ] % shares in [ ], and the Transferee agrees to accept such transfers under the terms and conditions of this Agreement.

 

THE PARTIES THEREFORE AGREE AS FOLLOWS:

 

Article 1: TRANSFER OF EQUITY INTEREST

 

1.1                       Transfer Agreement

 

1.1.1                             Subject to the terms and conditions of this Agreement, the Transferors hereby agree to transfer [ ] % shares they held in [ ] to the Transferee (the “Transfer”) at the Effective Date of this Agreement (as defined in Article 5.1 below) as of the Effective Date of this Agreement, and acquires all the related rights and interests accordingly.

 

1.1.2                             The Transferors and the Transferee have entered into a shares pledge 

 

 

agreement, under which the Transferors in favor of Party A pledged the entire shares as held by them in [ ]. Upon the execution of the Transfer in accordance with this Agreement, the portion of the pledge over the shares as transferred will disappear and the shares in pledge will be reduced in the same proportion.

 

1.2                       Transfer Price 

 

The purchase price of the [ ] % shares is RMB [ ].

 

Article 2: CLOSING

 

2.1                       Subject to terms and conditions of this Agreement, the closing of the Transfer involved in this Agreement (“Closing”) shall be deemed as having accomplished at the Effective Date of this Agreement.

 

2.2                       The Transferors shall submit to the Transferee any and all legal documents with respect to the Transfer being referred hereto at the Effective Date of this Agreement, in a way satisfactory to the Transferee formally and virtually.

 

2.3                       The Parties of this Agreement hereby agree that, with respect to the Transfer hereunder, the Transferors shall be responsible to file with the original registration authority of [ ]  for the purpose of all necessary registration change within thirty (30) days after the execution of this Agreement, and the Transferee shall offer necessary assistance and cooperation at the same time.

 

Article 3: REPRESENTATIONS AND WARRANTIES

 

3.1                       Representations and Warranties of the Transferors

 

The Transferors hereby make following representations and warranties to the Transferee,

 

3.1.1                  The Transferors have full legal power and authority to sign and execute this Agreement and transfer the shares referred to under this Agreement. The Transferors have taken all proper and necessary actions for the Transfer referred to under this Agreement. Upon the signing of this Agreement, it constitutes a legal, valid and binding obligation to the 

 

 

Transferors, and shall be enforceable against the Transferors according to its terms.

 

3.1.2                  In any event, the liabilities of the Transferors to [ ] and the Transferee are limited to the shares as each held thereby.

 

3.1.3                  The representations and warranties hereby made by the Transferors are true and accurate in all aspects at the Effective Date of this Agreement.

 

3.1.4                  Upon the effectiveness of this Agreement, the Transferors shall be responsible to effect all necessary internal and external procedures in respect of the Transfer, including but not limited to, signing resolutions of the shareholders’ meeting and making related registration change and filings.

 

3.2                       Representations and Warranties of the Transferee

 

The Transferee hereby makes the following representations and warranties to the Transferors,

 

3.2.1                  The Transferee has full legal power and authority to sign and execute this Agreement and carry out the Transfer hereunder. Upon the signing of this Agreement, it constitutes a legal, valid and binding obligation to the Transferee, and will be enforceable against the Transferee according to its terms.

 

3.2.2                  The liabilities of the Transferors to [ ] and the Transferee are limited to the shares as each held thereby before or after the Effective Date of this Agreement.

 

3.2.3                  The representations and warranties hereby made by the Transferee are true and accurate in all aspects at the Effective Date of this Agreement.

 

3.2.4                  Upon the effectiveness of this Agreement, the Transferee shall offer necessary assistance and cooperation to the Transferors for them to perform the obligations referred to in Article 3.1.4.

 

Article 4: THE CONTINUOUS EFFECTIVENESS OF WARRANTIES; COMPENSATION

 

4.1                       The Continuous Effectiveness of Warranties

 

The representations and warranties made by the Transferors and the Transferee 

 

 

respectively and any certificate or other documents submitted previously shall not be seen as waiver or be impacted as a result of any adjustment made by the Transferors and the Transferee and each of representations and warranties shall be continuous effective after the Closing.

 

4.2                       Compensation

 

If the Transferee or the Transferors bear any cost, expense, liability or loss owing to the Transferors or the Transferee violating this Agreement before the Effective Date of this Agreement, the defaulting party shall make compensation to the non-defaulting party and make the non-defaulting party free with any cost, expense, liability or loss incurred because of the foregoing reason.

 

Article 5: MISCELLANEOUS

 

5.1                       Effective Date of this Agreement

 

This Agreement shall take effect as of the date of execution by the Parties or their respective authorized representatives.

 

5.2                       Governing Law and Disputes Resolution

 

5.2.1                             The conclusion, validity, interpretation, performance, and the dispute resolution of this Agreement shall be governed by the laws of PRC.

 

5.2.2                             Any disputes arising from or relating to this Agreement shall be resolved through consultation in good faith by the Parties. In case of a failure to reach an agreement through such consultation, the Parties agree to submit the disputes to China International Economics and Trade Arbitration Commission for arbitration in accordance with its Arbitration Rules in effect at the time of the arbitration. The arbitration shall be held in Beijing and the language used will be Chinese. The arbitral award shall be final and binding upon the Parties.

 

5.3                       Language and Version

 

This Agreement shall be made in Chinese with an English translation. In case of discrepancies between the two versions, the Chinese version shall prevail. This Agreement has six (6) originals with each of the Transferors and the Transferee keeping one original. Other originals of this Agreement shall be used to conducting necessary changing registration procedures.

 

 

(Remainder of this page intentionally left blank.)

 

IN WITNESS HEREOF, the Parties have caused this Share Transfer Agreement to be executed on the date and at the place first above written.

 

Party A:

By:

Party B:

Authorized Representative:

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