Document:

Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”), is entered into as of                 (the “Effective Date”), by and between Xunlei Limited, a company incorporated and existing under the laws of the Cayman Islands (the “Company”) and                  , an individual (the “Executive”).  Except with respect to the direct employment of the Executive by the Company, the term “Company” as used herein with respect to all obligations of the Executive hereunder shall be deemed to include the Company and all of its subsidiaries and affiliated entities (collectively, the “Group”).

 

RECITALS

 

A. The Company desires to employ the Executive as its                 and to assure itself of the services of the Executive during the term of Employment (as defined below).

 

B. The Executive desires to be employed by the Company as its                during the term of Employment and upon the terms and conditions of this Agreement.

 

AGREEMENT

 

The parties hereto agree as follows:

 

1.                   POSITION 

 

The Executive hereby accepts a position of                (the “Employment”) of the Company.

 

2.                   TERM 

 

Subject to the terms and conditions of this Agreement, the initial term of the Employment shall be five years commencing on the Effective Date, unless terminated earlier pursuant to the terms of this Agreement. Upon expiration of the initial five-year term, the parties may extend the Employment term by entering into negotiations within one month prior to the expiration.

 

3.      PROBATION 

 

No probationary period.

 

4.      DUTIES AND RESPONSIBILITIES 

 

The Executive’s duties at the Company will include all jobs assigned by the Company’s Board of the Directors (the “Board”) or the Company’s Chief Executive Officer, as the case may be.

 

The Executive shall devote all of his or her working time, attention and skills to the performance of his or her duties at the Company and shall faithfully and diligently serve the Company in accordance with this Agreement, the Memorandum and Articles of Association of the Company, as amended and restated from time to time (the “Articles of Association”), and the guidelines, policies and procedures of the Company approved from time to time by the Board.

 

The Executive shall use his or her best efforts to perform his or her duties hereunder. The Executive shall not, without the prior written consent of the Board, become an employee of any entity other than the Company and any subsidiary or affiliate of the

 

1

 

Company, and shall not be concerned or interested in any business or entity that engages in the same business in which the Company engages (any such business or entity, a “Competitor”), provided that nothing in this clause shall preclude the Executive from holding any shares or other securities of any Competitor that is listed on any securities exchange or recognized securities market anywhere. The Executive shall notify the Company in writing of his or her interest in such shares or securities in a timely manner and with such details and particulars as the Company may reasonably require.

 

5.      NO BREACH OF CONTRACT 

 

The Executive hereby represents to the Company that: (i) the execution and delivery of this Agreement by the Executive and the performance by the Executive of the Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or otherwise bound except for agreements entered into by and between the Executive and any member of the Group pursuant to applicable law, if any; (ii) that the Executive has no information (including, without limitation, confidential information and trade secrets) relating to any other person or entity which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his or her duties hereunder; (iii) that the Executive is not bound by any confidentiality, trade secret or similar agreement (other than this) with any other person or entity except for other member(s) of the Group, as the case may be.

 

6.      LOCATION 

 

The Executive will be based in Shenzhen, China. The Company reserves the right to transfer or second the Executive to any location in China or elsewhere in accordance with its operational requirements.

 

7.                   COMPENSATION AND BENEFITS 

 

(a)               Cash Compensation. The Executive’s cash compensation (including salary and bonus) shall be determined by the Company and specified in a standalone agreement between the Executive and the Company’s designated subsidiary or affiliated entity and such compensation is subject to annual review and adjustment by the Company. 

 

(b)              Equity Incentives. To the extent the Company adopts and maintains a share incentive plan, the Executive will be eligible for participating in such plan pursuant to the terms thereof as determined by the Company.

 

(c)               Benefits. The Executive is eligible for participation in any standard employee benefit plan of the Company that currently exists or may be adopted by the Company in the future, including, but not limited to, any retirement plan, life insurance plan, health insurance plan and travel/holiday plan. 

 

8.                   TERMINATION OF THE AGREEMENT 

 

(a)               By the Company.

 

(i) For Cause. The Company may terminate the Employment for cause, at any time, without notice or remuneration (unless notice or remuneration is specifically

 

2

 

required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), if:

 

(1) the Executive is convicted or pleads guilty to a felony or to an act of fraud, misappropriation or embezzlement,

 

(2) the Executive has been grossly negligent or acted dishonestly to the detriment of the Company, or

 

(3) the Executive has engaged in actions amounting to willful misconduct or failed to perform his or her duties hereunder and such failure continues after the Executive is afforded a reasonable opportunity to cure such failure.

 

(ii) For death and disability. The Company may also terminate the Employment, at any time, without notice or remuneration (unless notice or remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), if:

 

(1) the Executive has died, or

 

(2) the Executive has a disability which shall mean a physical or mental impairment which, as reasonably determined by the Board, renders the Executive unable to perform the essential functions of his or her employment with the Company, even with reasonable accommodation that does not impose an undue hardship on the Company, for more than 180 days in any 12-month period, unless a longer period is required by applicable law, in which case that longer period would apply.

 

(iii) Without Cause. The Company may terminate the Employment without cause, at any time, upon a two-month written notice.  Upon termination without cause, the Company shall provide the following severance payments and benefits to the Executive: (1) a lump sum cash payment equal to               months of the Executive’s base salary at a rate equal to the greater of his/her annual salary in effect immediate1y prior to the termination, or his/her then current annua1 salary as of the date of such termination; (2) a lump sum cash payment equal to a pro-rated amount of his/her target annual bonus for the year immediately preceding the termination; (3) payment of premiums for continued health benefits under the Company’s health plans for                 months fo1lowing the termination; and (4) immediate vesting of             % of the then-unvested portion of any outstanding equity awards held by the Executive.

 

(iv) Change of Control Transaction.  If the Company or its successor terminates the Employment upon a merger, consolidation, or transfer or sale of all or substantially all of the assets of the Company with or to any other individual(s) or entity (the “Change of Control Transaction”), the Executive shall be entitled to the following severance payments and benefits upon such termination: (1) a lump sum cash payment equal to               months of the Executive’s base salary at a rate equal to the greater of his/her annual salary in effect immediate1y prior to the termination, or his/her then current annua1 salary as of the date of such termination; (2) a lump sum cash payment equal to a pro-rated amount of his/her target annual bonus for the year immediately preceding the termination; (3) payment of premiums for continued health benefits under the Company’s health plans for                 months

 

3

 

fo1lowing the termination; and (4) immediate vesting of              % of the then-unvested portion of any outstanding equity awards held by the Executive.

 

(b)              By the Executive. The Executive may terminate the Employment at any time with a one-month prior written notice to the Company, if (1) there is a material reduction in the Executive’s authority, duties and responsibilities, or (2) there is a material reduction in the Executive’s annual salary before the next annual salary review.  Upon the Executive’s termination of the Employment due to either of the above reasons, the Company shall provide compensation to the Executive equivalent to               months of the Executive’s cash compensation that he/she is entitled to immediately prior to such termination.  In addition, the Executive may resign prior to the expiration of the Agreement if such resignation is approved by the Board or an alternative arrangement with respect to the Employment is agreed to by the Board.

 

(c)               Notice of Termination. Any termination of the Executive’s employment under this Agreement shall be communicated by written notice of termination from the terminating party to the other party. The notice of termination shall indicate the specific provision(s) of this Agreement relied upon in effecting the termination. 

 

9.      CONFIDENTIALITY AND NONDISCLOSURE 

 

(a)               Confidentiality and Non-disclosure. The Executive hereby agrees at all times during the term of the Employment and after its termination, to hold in the strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, corporation or other entity without written consent of the Company, any Confidential Information. The Executive understands that “Confidential Information” means any proprietary or confidential information of the Company, its affiliates, or their respective clients, customers or partners, including, without limitation, technical data, trade secrets, research and development information, product plans, services, customer lists and customers, supplier lists and suppliers, software developments, inventions, processes, formulas, technology, designs, hardware configuration information, personnel information, marketing, finances, information about the suppliers, joint ventures, franchisees, distributors and other persons with whom the Company does business, information regarding the skills and compensation of other employees of the Company or other business information disclosed to the Executive by or obtained by the Executive from the Company, its affiliates, or their respective clients, customers or partners either directly or indirectly in writing, orally or otherwise, if specifically indicated to be confidential or reasonably expected to be confidential. Notwithstanding the foregoing, Confidential Information shall not include information that is generally available and known to the public through no fault of the Executive. 

 

(b)              Company Property. The Executive understands that all documents (including computer records, facsimile and e-mail) and materials created, received or transmitted in connection with his or her work or using the facilities of the Company are property of the Company and subject to inspection by the Company, at any time. Upon termination of the Executive’s employment with the Company (or at any other time when requested by the Company), the Executive will promptly deliver to the Company all documents and materials of any nature pertaining to his work with the Company and will provide written certification of his or her compliance with this

 

4

 

Agreement. Under no circumstances will the Executive have, following his or her termination, in his or her possession any property of the Company, or any documents or materials or copies thereof containing any Confidential Information. 

 

(c)               Former Employer Information. The Executive agrees that he or she has not and will not, during the term of his or her employment, (i) improperly use or disclose any proprietary information or trade secrets of any former employer or other person or entity with which the Executive has an agreement or duty to keep in confidence information acquired by Executive, if any, or (ii) bring into the premises of the Company any document or confidential or proprietary information belonging to such former employer, person or entity unless consented to in writing by such former employer, person or entity. The Executive will indemnify the Company and hold it harmless from and against all claims, liabilities, damages and expenses, including reasonable attorneys’ fees and costs of suit, arising out of or in connection with any violation of the foregoing. 

 

(d)              Third Party Information. The Executive recognizes that the Company may have received, and in the future may receive, from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. The Executive agrees that the Executive owes the Company and such third parties, during the Executive’s employment by the Company and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person or firm and to use it in a manner consistent with, and for the limited purposes permitted by, the Company’s agreement with such third party. 

 

This Section 9 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 9, the Company shall have right to seek remedies permissible under applicable law.

 

10.            CONFLICTING EMPLOYMENT. 

 

The Executive hereby agrees that, during the term of his or her employment with the Company, he or she will not engage in any other employment, occupation, consulting or other business activity related to the business in which the Company is now involved or becomes involved during the term of the Executive’s employment, nor will the Executive engage in any other activities that conflict with his or her obligations to the Company without the prior written consent of the Company.

 

11.            NON-COMPETITION AND NON-SOLICITATION 

 

In consideration of the salary paid to the Executive by the Company and subject to applicable law, the Executive agrees that during the term of the Employment and for a period of one (1) year following the termination of the Employment for whatever reason:

 

(a)               The Executive will not approach clients, customers or contacts of the Company or other persons or entities introduced to the Executive in the Executive’s capacity as a representative of the Company for the purposes of doing business with such persons or entities which will harm the business relationship between the Company and such persons and/or entities;

 

5

 

(b)              unless expressly consented to by the Company, the Executive will not assume employment with or provide services as a director or otherwise for any Competitor, or engage, whether as principal, partner, licensor or otherwise, in any Competitor; and

 

(c)               unless expressly consented to by the Company, the Executive will not seek, directly or indirectly, by the offer of alternative employment or other inducement whatsoever, to solicit the services of any employee of the Company employed as at or after the date of such termination, or in the year preceding such termination.

 

The provisions contained in Section 11 are considered reasonable by the Executive and the Company. In the event that any such provisions should be found to be void under applicable laws but would be valid if some part thereof was deleted or the period or area of application reduced, such provisions shall apply with such modification as may be necessary to make them valid and effective.

 

This Section 11 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 11, the Executive acknowledges that there will be no adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a decree for specific performance, and such other relief as may be proper (including monetary damages if appropriate). In any event, the Company shall have right to seek all remedies permissible under applicable law.

 

12.    WITHHOLDING TAXES 

 

Notwithstanding anything else herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

13.            ASSIGNMENT 

 

This Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; provided, however, that (i) the Company may assign or transfer this Agreement or any rights or obligations hereunder to any member of the Group without such consent, and (ii) in the event of a Change of Control Transaction, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of the Company hereunder.

 

14.            SEVERABILITY 

 

If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.

 

15.            ENTIRE AGREEMENT 

 

This Agreement constitutes the entire agreement and understanding between the Executive and the Company regarding the terms of the Employment and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter.

 

6

 

The Executive acknowledges that he or she has not entered into this Agreement in reliance upon any representation, warranty or undertaking which is not set forth in this Agreement. Any amendment to this Agreement must be in writing and signed by the Executive and the Company.

 

16.    GOVERNING LAW; JURISDICTION 

 

This Agreement shall be governed by and construed in accordance with the laws of the Cayman Islands. Each party hereto irrevocably agrees that                shall have jurisdiction to hear and determine any suit, action or proceeding, and to settle any disputes which may arise out of or in connection with this Agreement and for such purposes irrevocably submits to the jurisdiction of such courts.

 

17.    AMENDMENT 

 

This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

 

18.    WAIVER 

 

Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

19.    NOTICES 

 

All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii) sent by a recognized courier with next-day or second-day delivery to the last known address of the other party.

 

20.    COUNTERPARTS 

 

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

 

Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

21.    NO INTERPRETATION AGAINST DRAFTER 

 

Each party recognizes that this Agreement is a legally binding contract and acknowledges that it, he or she has had the opportunity to consult with legal counsel of

 

7

 

choice. In any construction of the terms of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such terms.

 

[Remainder of this page has been intentionally left blank.]

 

8

 

IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

 

 

	
 
    	
 
    	
Xunlei   Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Executive
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
					

 

9

 

Schedule A

 

Cash Compensation

 

	
 
    	
 
    	
Amount
    	
 
    	
Pay Period
    	
 
    
	
Salary
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Bonus
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

10Exhibit 10.4

 

Business Operation Agreement

 

This BUSINESS OPERATION AGREEMENT (this “Agreement”), dated November 15, 2006, is made in Shenzhen by and between:

 

Party A: Giganology (Shenzhen) Ltd.

 

Legal Address: 11th Floor, Shuguang Plaza, South District of High-tech Park, Nanshan District, Shenzhen, Guangdong, PRC;

 

And

 

Party B: Shenzhen Xunlei Networking Technologies Co., Ltd.

 

Legal Address: 11th Floor East, Shuguang Plaza, Ke Ji Nan Shi Er Road, Nanshan District, Shenzhen, Guangdong, PRC

 

And

 

Party C:

 

(1)   Zou Shenglong, PRC resident ID number ####, with home address located at Room 18C, No. 29 Tower, Mei Lin Yi Cun, Futian District, Shenzhen, Guangdong, PRC;

 

(2)   Cheng Hao, PRC resident ID number ####, with home address located at 3102, Tower A, Lan Wan Ban Dao, Fudian District, Shenzhen, Guangdong, PRC;

 

(3)   Wang Fang, PRC resident ID number ####, with home address located at Staff Apartment Building, Dayu Trading Company, Zhenxing Road, Shenzhen, Guangdong, PRC;

 

(4)   Shi Jianming, PRC resident ID number ####, with home address located at 204 Wukang Road, Xuhui District, Shanghai, PRC; and

 

(5)   Guangzhou Shulian Information Investment Co., Ltd., business license No. ####, with registered address located at Room 404, 1069 Xiagang Avenue, Guanghzou Economy & Technology Development Zone, Guangdong, PRC.

 

(Collectively, the “Parties”)

 

WHEREAS:

 

1.             Party A is a duly registered and established wholly foreign owned enterprise in the People’s Republic of China (the “PRC”);

 

2.             Party B is a limited liability company registered and established in the PRC;

 

3.             Party A and Party B has established a business cooperation relationship by entering into the Software and Proprietary Technology License Agreement, Exclusive Technical Support and Services Agreement, Exclusive Technology Consulting and Training Agreement, Supplemental Agreement to Exclusive Technical Support and Services Agreement, and Supplemental Agreement to Exclusive Technology Consulting and Training Agreement; Party B will make certain payments to Party A under the above mentioned agreements. Therefore, the daily business operation of Party B will substantially affect its ability to pay to Party A.

 

4.             The individuals of Party C are Party B’s shareholder (“Shareholders”), which jointly hold 100% equity interests of Party B.

 

1

 

NOW, THEREFORE, the Parties agree and intend to be bound as follows through friendly negotiations and in accordance with the principles of equality and mutual benefit:

 

1.             Obligations of Omission

 

In order to ensure Party B’s performance of all the aforesaid agreements entered into by it with Party A as well as Party B’s performance of all of its obligations thereunder, the Shareholders hereby confirm and agree that, unless consented by Party A, Party A’s parent company, or any other designated parties in advance, Party B will not conduct any transaction which might substantially affect Party B’s assets, business, employees, obligations, rights or operation, including with limitation:

 

1.1           to conduct any activity beyond the company’s business scope, or to conduct the business in a way different from the past adopted ways or normal ways operating business;

 

1.2           to borrow money from any third party, or become liable for any third party;

 

1.3           to change or fire any director of the company, or replace any senior management of the company;

 

1.4           to sell to or buy from any third party, or dispose of in any other way, any asset or right in a value above Renminbi Two Hundred Thousand Yuan (RMB200,000), including without limitation any intellectual property;

 

1.5           to provide to any third party, any guaranty by means of its assets or intellectual property, or any other guaranty in any other form, or create any other encumbrances over its assets;

 

1.6           to amend the articles of association of the company, or change the business scope of the company;

 

1.7           to change the company’s normal operation procedure, or amend any major internal rules or systems of the company;

 

1.8           to assign any of its rights or obligations hereunder to any third party;

 

1.9           to make major change to its business operation model, marketing strategy, operation plan or client relationship; or

 

1.10         to conduct any distribution of dividends or bonuses.

 

2.             Operation Management and Human Resources Management

 

2.1           Party B and the Shareholders hereby agree to accept the suggestions that Party A may from time to time make, regarding Party B’s employee recruitment and dismissal, daily corporate operation and management, and financial management system, to be strictly complied with by Party B.

 

2.2           Party B and the Shareholders hereby agree that, the Shareholders will, in accordance the procedures provided by laws, regulations, and the articles of association of Party B, elect the persons nominated by Party A as Party B’s directors and cause such directors to elect the person nominated by Party A as the Chairman of the Board of Directors, and appoint the persons nominated by Party A to serve the posts of Party B’s general manger, financial director or other senior management positions.

 

2.3           In the event that any of above mentioned directors or senior management nominated by Party A resigns from Party A, voluntarily or dismissed by Party A, such person will immediately lose the qualification to serve any post at Party B. In this circumstance, the Shareholders will immediately dismiss such person from the post severed by him or her at Party B, and elect and engage any other person nominated by Party A to serve such vacant post at Party B.

 

2

 

2.4           For the purpose of the above Article 2.3, the Shareholders will take all necessary internal and external corporate procedures to complete the above voting rights of such shareholders dismissal and engagement procedures pursuant to laws, the articles of association of the company, and this Agreement.

 

2.5           The Shareholders agree to additionally sign a Letter of Authorization substantially similar to the Schedule A hereto at the execution of this Agreement, in accordance with which, the Shareholders will irrevocably authorize the person nominated by Party A to exercise the rights of Shareholders on behalf of the Shareholders, and to exercise, in the name of the shareholders, all the Shareholder, at the Shareholders Meeting of Party B. The Shareholders further agree that they will replace the authorized person specified in the above Letter of Authorization from time to time according to Party A’s requirement.

 

3.             Others

 

3.1           In the event that any agreement by and between Party A and Party B terminates or expires, Party A shall be entitled to decide whether to terminate all the agreements by and between Party A and Party B, including without limitation the Technical Consulting and Support Contract.

 

3.2           Considering that Party A and Party B have already established business cooperation by signing agreements including the technical development contract, Party B’s daily business operation activities will substantially affect its ability to pay Party A. The Shareholders agree that, if they receive any bonuses or dividends distributed by Party B, or any other earnings or benefits from Party B (in whatever form) as Party B’s shareholders, then, the Shareholders shall unconditionally pay or transfer at no charge to Party A all the earnings or benefits received from Party B, and provide all the documents and take all the actions required by Party A for realization of such payment or transfer of the above-mentioned earnings or benefits.

 

4.             Integrity and Amendment

 

4.1           This Agreement, all the other agreements and/or documents referred to herein and all the agreements and/or documents expressly contemplated herein constitute the whole agreement reached by the Parties with respect to the subject matter of this Agreement, and replace all preceding oral and written agreements, contracts, memorandums of understanding and communications among the Parties regarding the subject matter of this Agreement.

 

4.2           No amendment to this Agreement shall become effective unless signed by the Parties in writing. Any amendment or supplemental to this Agreement duly signed by the Parties is an integral part of this Agreement, and shall have the same legal effect with this Agreement.

 

5.             Governing Law

 

The execution, validity, performance of this Agreement and the resolution of dispute in connection with this Agreement shall be governed by and interpreted in accordance with PRC laws.

 

6.             Dispute Resolution

 

6.1           Any dispute arising from the execution, performance, termination or validity of this Agreement or in connection with this Agreement shall be resolved by the Parties through friendly negotiations and, if negations fail, shall be submitted to China International Trade and Economic Arbitration Commission South China Sub-commission (“CIETAC South China Sub-commission”) for arbitration according to its then effective rules and proceeding. There will be one arbitrator who shall be

 

3

 

appointed by the CIETAC South China Sub-commission according to above mentioned rules and proceeding. The arbitral award is final and binding upon the Parties. Unless otherwise provided by the arbitral award, the losing Party shall assume all the costs and expenses of arbitration and reimburse all the costs and expenses of arbitration incurred by the winning Party. If either Party needs to file a lawsuit for enforcement of the arbitral award, the losing Party shall reimburse the other Party for all reasonable expenses and legal fee so incurred by the other Party.

 

6.2           Each Party shall continue the performance of its obligations hereunder with good faith pursuant to this Agreement, unless it is disputed among the Parties.

 

7.             Notice

 

All the notices given by each Party for purpose of performance its rights or obligations hereunder shall be made in writing, and shall be delivered to the addresses of related Party or other Parties specified below in person, by registered mail, pre-paid post, recognized courier, or facsimile.

 

	
Party A:
    	
 
    	
Giganology   (Shenzhen) Ltd.
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
11th Floor, Shuguang Plaza, South District of   High-tech Park, Nanshan District, Shenzhen, Guangdong, PRC
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
0755-26996974
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
0755-26996887
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
Zou Shenglong
    
	
 
    	
 
    	
 
    
	
Party B:
    	
 
    	
Shenzhen Xunlei Networking Technologies Co., Ltd.
    	
 

	
 
    	
 
    	
 
    	
 

	
Address:
    	
 
    	
11th Floor East, Shuguang Plaza, Ke Ji Nan Shi Er   Road, Nanshan District, Shenzhen, Guangdong, PRC
    	
 

	
 
    	
 
    	
 
    	
 

	
Facsimile:
    	
 
    	
0755-26993074
    	
 

	
 
    	
 
    	
 
    	
 

	
Telephone:
    	
 
    	
0755-26993076
    	
 

	
 
    	
 
    	
 
    	
 

	
Attention:
    	
 
    	
Zou Shenglong
    	
 

 

Party C:

 

(1)           Zou Shenglong

 

	
Address:
    	
 
    	
Room 18C,   No. 29 Tower, Mei Lin Yi Cun, Futian District, Shenzhen, Guangdong, PRC
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
0755-26993074
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
13922896966
    

 

4

 

(2)           Cheng Hao

 

	
Address:
    	
 
    	
3102, Tower A, Lan   Wan Ban Dao, Fudian District, Shenzhen, Guangdong, PRC
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
0755-26993074
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
13928471684
    

 

(3)           Wang Fang

 

	
Address:
    	
 
    	
Staff Apartment   Building, Dayu Trading Company, Zhenxing Road, Shenzhen, Guangdong, PRC
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
0755-26993074
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
13802265001
    

 

(4)           Shi Jianming

 

	
Address:
    	
 
    	
204 Wukang Road, Xuhui District, Shanghai, PRC
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
021-61197500
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
13601666206
    

 

(5)           Guangzhou Shulian Information Investment Co., Ltd.

 

	
Address:
    	
 
    	
Room 404,   1069 Xiagang Avenue, Guanghzou Economy & Technology Development Zone,   Guangdong, PRC
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
020-38295235
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
020-38295116
    

 

8.             Effectiveness, Term and Others

 

8.1           Any written consent, suggestion or appointment or any decision which may have major impact on Party B’s daily operation that is made by Party A and referenced herein, shall be made by the Board of Directors of Party A.

 

8.2           This Agreement is signed by the Parties and becomes effective on the date first above written. The term of this Agreement is ten (10) years after becoming effective, unless Party A early terminates this Agreement. In the event that before this Agreement expires Party A intends to renew this Agreement, then the Parties shall extend the term of this Agreement according to Party A’s requirement, and additionally sign another business operation agreement or continue to perform this Agreement according to Party A’s requirement.

 

5

 

8.3           Throughout the term hereof, neither Party B nor the Shareholders may early terminate this Agreement. Party A has the right to terminate this Agreement at any time by giving a thirty(30)-day written notice to Party B and the Shareholders.

 

8.4           The Parties hereby acknowledges that, this Agreement is reached by the Parties according to the principle of equality and mutual benefit on a fair and reasonable basis. If any term or provision herein becomes illegal or unenforceable due to the governing law, then such term or provision shall be deemed to have been deleted from this Agreement and become invalid, however provided that, the remaining terms herein still remain valid, and the above mentioned term or provision shall be deemed not contemplated in this Agreement from the conclusion hereof. The Parties shall replace the deleted terms with legal and valid terms which are acceptable to all the Parties through negotiations.

 

8.5           Any failure or delay to exercise any of its rights, power, or privileges under this Agreement by either Party will not operate as its waiver of such right, power or privilege. Single or partial exercise of any right, power or privilege by either Party shall not exclude its exercise of any other rights, power or privileges.

 

8.6           The Parties signed a Equity Interests Disposal Agreement, which becomes effective as of the effectiveness of this Agreement.

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written.

 

6

 

[Execution page of this Business Operation Agreement]

 

 

Party A: Giganology (Shenzhen) Ltd.

 

	
By:
    	
/s/ Legal   Representative/Authorized Representative
    	
 
    
	
 
    	
 
    
	
(Affixed with common seal of the company)
    	
 
    

 

 

Party B: Shenzhen Xunlei Networking Technologies Co., Ltd.

 

	
By:
    	
/s/ Legal   Representative/Authorized Representative
    	
 
    
	
 
    
	
(Affixed with common seal of the company)
    

 

 

Party C:

 

	
By:
    	
/s/ Zou Shenglong
    	
 
    
	
 
    	
 
    
	
(Signature/Seal)
    	
 
    

 

 

	
By:
    	
/s/ Cheng Hao
    	
 
    
	
 
    	
 
    	
 
    
	
(Signature/Seal)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Wang Fang
    	
 
    
	
 
    	
 
    	
 
    
	
(Signature/Seal)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Shi Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
(Signature/Seal)
    	
 
    

 

 

Guangzhou Shulian Information Investment Co., Ltd.

 

By:          /s/ Legal Representative/Authorized Representative

 

(Affixed with common seal of the company)

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]