Document:

Exhibit 10.15

 

EQUITY PLEDGE AGREEMENT

This Equity Pledge Agreement (this “Agreement”) is made and entered into by the parties below on June 11, 2018 in Beijing:

 

Pledgee:

 

Beijing Zhong Zhi Shi Zheng Data Information Technology Co., Ltd., a wholly foreign owned enterprise established in China with its registered address at Room 208A, 2nd Floor, Building No. 14, South District of No. 46 Zhongguancun South Street, Haidian District, Beijing

 

Pledgor I: Tianquan Mo, Chinese, ID No.: [REDACTED], address: Tower A, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing

 

Pledgor II: Yu Huang, Chinese, ID No.: [REDACTED], address: Tower A, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing

 

Pledgor I and Pledgor II are hereinafter referred to as the “Pledgor(s),” and the Pledgee and the Pledgors, collectively, the “Parties.” Pledgor I and Pledgor II pledge all of their equity interests in Beijing Zhong Zhi Hong Yuan Data Information Technology Co., Ltd. The pledge amount is the entire registered capital of the company, which is RMB 1,500,000 recorded on the business license of the company, and the target of the pledge is the 100% equity interest in the company. Pledgor I pledges its equity interests of 80% in the company (i.e., 80% of the company’s entire equity interests, representing RMB1,200,000 in the registered capital), and the respective amount of the secured claim is RMB1,200,000 (i.e., securing 80% of the debts owed by the company to the Pledgee). Pledgor II pledges its equity interests of 20% in the company (i.e., 20% of the company’s entire equity interests, representing RMB300,000 in the registered capital), and the respective amount of the secured claim RMB 300,000 (i.e., securing 20% of the debts owed by the company to the Pledgee).

 

Whereas:

 

Each Pledgor is a PRC citizen holding equity interests of 80% (i.e., RMB1,200,000) and 20% (i.e. RMB300,000), respectively, in Beijing Zhong Zhi Hong Yuan Data Information Technology Co., Ltd. (hereinafter referred to as “Beijing Zhong Zhi Hong Yuan”).

 

Beijing Zhong Zhi Hong Yuan, a company registered in Beijing, China, is engaged in the business of technology services; information consulting (excluding agency services); design, produce, and publish advertisements and act as advertising agency; sales of computers, software and auxiliary equipment, hardware and electrical appliance (excluding electric bicycles, and not operating in physical stores), machinery and equipment; as well as Internet information services.

 

The Pledgee is a wholly foreign owned enterprise registered in Beijing, China, licensed by relevant government departments to lawfully engage in the business of development and production of computer multimedia system software; provision of electronic and information technology services; as well as sales of self-produced products.  The Pledgee and Beijing Zhong Zhi Hong Yuan which is owned by the Pledgors have entered into the Exclusive Technical Consultancy and Services Agreement (hereinafter referred to as the “Service Agreement”) on June 11, 2018.

 

In order to ensure that the Pledgee can collect consulting and services fees pursuant to the Service Agreement from Beijing Zhong Zhi Hong Yuan which is owned by the Pledgors, the Pledgors hereby pledge all of their Equity Interests in Beijing Zhong Zhi Hong Yuan (i.e., RMB1,500,000) to the Pledgee as a guarantee for the payment of the consulting and services fees under the Service Agreement. Pledgor I pledges its equity interests of 80% in Beijing Zhong Zhi Hong Yuan ( i.e., 80% of the company’s entire equity interests, representing RMB1,200,000 in the registered capital), and the respective amount of the secured claim is RMB1,200,000 (i.e., securing 80% of the debts owed by the company to the Pledgee). Pledgor II pledges its equity interests of 20% in Beijing Zhong Zhi Hong Yuan (i.e., 20% of the company’s entire equity interests, representing RMB300,000 in the registered capital), and the respective amount of the secured claim RMB 300,000 (i.e., securing 20% of the debts owed by the company to the Pledgee).

 

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NOW, THEREFORE, the Pledgors and the Pledgee, through negotiations on the principle of equality, agree as follows:

 

1.                   Definition

 

Unless otherwise provided in this Agreement, the following terms shall have the following meanings:

 

1.1            Right of Pledge: as specified in Article 2 of this Agreement.

 

1.2            Equity Interests: 100% of the equity interests held by the Pledgors in Beijing Zhong Zhi Hong Yuan, representing RMB1,500,000 in the registered capital.

 

1.3            Term of Pledge: the term specified in Article 3 hereunder.

 

1.4            Service Agreement: the Exclusive Technical Consultancy and Services Agreement entered into by Beijing Zhong Zhi Hong Yuan and the Pledgee on June 11, 2018.

 

1.5            Breach of Agreement: any circumstance specified in Article 6.1 hereunder.

 

1.6            Notice of Breach: a notice sent by the Pledgee under this Agreement declaring a Breach of Agreement.

 

1.7            Terms not specifically defined hereunder shall have the same meaning as the corresponding terms contained in the Service Agreement.

 

2.                   Pledge and Right of Pledge

 

2.1            The Pledgors pledge all their Equity Interests in Beijing Zhong Zhi Hong Yuan to the Pledgee. The Right of Pledge means the priority right enjoyed by the Pledgee to claim the consulting and services fees, which the Pledgee is entitled to under the Service Agreement from funds obtained through conversion, auction or sale of the Equity Interests that the Pledgors pledge to the Pledgee.

 

3.                   Term of Pledge

 

3.1            This Agreement shall become effective upon its execution by the authorized representatives of all Parties hereto on the date first written above. The pledge of Equity Interest under this Agreement shall come into force upon the date when the pledge of Equity Interests hereunder is recorded in accordance with applicable laws, and such pledge shall remain valid till June 11, 2028. The Term of Pledge can be extended for ten (10) years upon expiration, at the option of the Pledgee.  Thereafter, the Pledgee is entitled to unilaterally extend the term of this Agreement, and the Pledgors must unconditionally consent to the Pledgee’s decision to extend the term of this Agreement.

 

3.2            During the Term of Pledge, the Pledgee is entitled to exercise its Right of Pledge should Beijing Zhong Zhi Hong Yuan not disburse part or all of the consulting and services fees under the Service Agreement.

 

4.                   Custody of the Certificate for Pledge

 

4.1            During the Term of Pledge under this Agreement, the Pledgee shall keep in custody the investment certificates of the Equity Interests in Beijing Zhong Zhi Hong Yuan and the register of shareholders of Beijing Zhong Zhi Hong Yuan in which the pledge of the Equity Interests hereunder is recorded. Within one (1) week of the execution of this Agreement, the Pledgors shall deliver these aforesaid documents to the Pledgee.

 

4.2            The Pledgee is entitled to collect dividends arising out of the Equity Interests.

 

5.                   Representations and Warranties of the Pledgors

 

5.1            The Pledgors are PRC citizens with full capacity for civil act, with full and independent legal status, and are legally competent to sign, deliver and perform this Agreement. Each of the Pledgors can sue or be sued in a litigation.

 

5.2            The Pledgors are the lawful owners of the Equity Interests.

 

5.3            The Pledgors can sign this Agreement without the consent of any third party.

 

5.4            When exercising its Right of Pledge under this Agreement, the Pledgee shall not be interfered by any other party.

 

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5.5            Except for the Right of Pledge, there are no other liens, pledges, mortgages, claims or other guarantee rights, or restrictions imposed by or belonging to any third party, in the Equity Interests.

 

5.6            Without the prior written consent of the Pledgee, the Pledgors shall not transfer the Equity Interests, nor shall they establish or permit to be established any liens, pledges, mortgages, claims or other guarantee rights, or restrictions in favor of any third party, that may affect the rights and interests of the Pledgee.

 

5.7            The Pledgors shall observe and comply with any and all provisions of laws and regulations concerning the pledge. Within five (5) days after receiving any notice or decree issued or provided by relevant authorities, the Pledgors shall present such notice or decree to the Pledgee, and issue opinion on the aforesaid matters upon the reasonable request of the Pledgee.

 

5.8            The Pledgors shall promptly notify the Pledgee of any event or circumstance that may affect the Equity Interests pledged, change any of the Pledgors’ warranties and obligations, or affect the performance of the Pledgors’ obligations hereunder.

 

5.9            The Pledgors hereby agree that the Right of Pledge to be exercised by the Pledgee shall not be disrupted or impaired by the Pledgors, the Pledgors’ successors, or trustees, or any other person.

 

5.10     Each of the Pledgors has full power to sign, deliver and perform this Agreement. This Agreement shall be signed and delivered by the Pledgors legally and properly. This Agreement shall be binding upon the Pledgors and may be enforced against the Pledgors in accordance with the terms and conditions hereunder.

 

5.11     The Pledgors shall complete the procedures for registration and filing with the relevant government departments, including but not limited to the State Administration of Industry and Commerce in China (if needed).

 

5.12     In the interests of the Pledgee, the Pledgors shall observe and perform all of the aforesaid warranties, undertakings, agreements, representations and conditions. Should any of the Pledgors not perform or fully perform such warranties, undertakings, agreements, representations and conditions, it shall be liable for damages to the Pledgee for any loss suffered by the Pledgee arising therefrom.

 

6.                   Breach of Agreement

 

6.1            Any of the following events shall be deemed a Breach of Agreement:

 

6.1.1           Beijing Zhong Zhi Hong Yuan fails to promptly disburse the total consulting and services fees under the Service Agreement.

 

6.1.2           Any of the representations and warranties contained in Article 5 are materially misleading or false, and/or the Pledgors breach any of the representations and warranties contained in Article 5.

 

6.1.3           The Pledgors breach any of the terms and conditions of this Agreement.

 

6.1.4           Unless otherwise agreed under Article 5.6, the Pledgors forfeit the Equity Interests pledged or transfer such Equity Interests without the written consent of the Pledgee.

 

6.1.5           Any loan, guaranty, indemnification, undertaking or other responsibility that Beijing Zhong Zhi Hong Yuan owes to any third party (1) is requested to be repaid or performed in advance due to breach of contract by Beijing Zhong Zhi Hong Yuan; or (2) is due but not repaid or performed by Beijing Zhong Zhi Hong Yuan such that the Pledgee believes that the capacity of Beijing Zhong Zhi Hong Yuan to perform its obligations has been affected thereby.

 

6.1.6           The Pledgors fail to repay any of their own debts.

 

6.1.7           This Agreement becomes illegal due to the publication of relevant laws or the Pledgors fail to continue performing their obligations hereunder.

 

6.1.8           Any consent, approval or authorization by government organizations required to render this Agreement enforceable, legal, or valid is rescinded, terminated, invalidated or materially amended.

 

6.1.9           Properties owned by the Pledgors have suffered an adverse change such that the Pledgee believes that the capacity of the Pledgors to perform their obligations has been adversely affected thereby.

 

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6.1.10    The successor or custodian of Beijing Zhong Zhi Hong Yuan performs only part of, or refuses to perform, the payment obligations under the Service Agreement.

 

6.1.11    The Pledgee is unable to exercise its Right of Pledge under the relevant laws.

 

6.2            The Pledgors shall notify the Pledgee in writing if the Pledgors become aware of, or find out about, the occurrence of any of the events or circumstances specified in Article 6.1 or occurrences that may lead to the aforesaid events or circumstances.

 

6.3            Unless the events or circumstances specified in Articles 6.1 under this Agreement have been settled to the Pledgee’s satisfaction, the Pledgee may send a Notice of Breach in writing to the Pledgors at any time during or after a Breach of Agreement by the Pledgors, requesting the Pledgors to forthwith pay any and all debts under the Service Agreement and other debts due, or it may exercise its Right of Pledge in accordance with the provisions contained in Article 7 hereunder.

 

7.                   Exercise of Right of Pledge

 

7.1            Before repaying in full the consulting and services fees under the Service Agreement, the Pledgors shall not transfer the Equity Interests pledged without the written consent of the Pledgee.

 

7.2            The Pledgee shall send a Notice of Breach to the Pledgors when the Pledgee exercises its Right of Pledge.

 

7.3            The Pledgee can exercise its Right of Pledge when it sends a Notice of Breach or at any time after sending such Notice in accordance with the provisions contained in Article 6.3.

 

7.4            The Pledgee has priority in receiving repayment from funds obtained through conversion, auction or sale of part or all of the Equity Interests under this Agreement pursuant to legal procedures, until the consulting and services fees remaining unpaid under the Service Agreement and all other payments due have been paid off.

 

7.5            When the Pledgee exercises its Right of Pledge under this Agreement, the Pledgors shall not obstruct such exercise in any way and shall instead render any necessary assistance so that the Pledgee can realize its Right of Pledge.

 

8.                   Transfer

 

8.1            Unless previously consented to in writing by the Pledgee, none of the Pledgors shall have any right to donate or transfer the rights and obligations under this Agreement.

 

8.2            This Agreement shall be binding upon the Pledgors, the Pledgors’ successors and transferees of the Equity Interests pledged with the consent of the Pledgee, and shall remain a valid obligation on the Pledgee and any of its successors and transferees.

 

8.3            The Pledgee can transfer, at any time, any and all rights and obligations under the Service Agreement to any person designated by the Pledgee. Under such circumstances, the transferee shall have the same rights and obligations of the Pledgee under this Agreement as if it were a Party hereto. The Pledgors shall sign any relevant agreements and/or documents effecting such transfer upon the request of the Pledgee when the Pledgee transfers the aforesaid rights and obligations.

 

8.4            If the identity of the Pledgee or Pledgors changes due to the aforesaid transfer of the rights and obligations herein, the new parties involved in the pledge shall sign a new pledge agreement.

 

9.                   Termination

 

9.1            When the consulting and services fees under the Service Agreement are fully repaid and Beijing Zhong Zhi Hong Yuan has performed all other obligations under the Service Agreement, this Agreement shall be terminated.

 

10.            Expenses

 

10.1     Any and all expenses relating to this Agreement, to the extent reasonable, including but not limited to the legal fees, production costs, stamp duties and any other taxes and expenses, shall be borne by the Pledgors. Should the Pledgee pay any such expenses or taxes, the Pledgors shall fully reimburse the Pledgee for the aforesaid expenses or taxes paid by the Pledgee.

 

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10.2     The Pledgee may take any measure to claim from the Pledgors any such expenses or taxes arising under this Agreement or such other expenses or taxes that the Pledgors agreed to pay but have not yet paid. Any and all expenses (including but not limited to taxes and expenditures, handling charges, overhead expenses, legal costs, attorney’s fees and insurance premiums) arising out of the aforesaid claims shall be borne by the Pledgors.

 

11.            Force Majeure

 

11.1     “Force majeure” means any unforeseeable circumstance which is beyond the control of a Party, or any unavoidable event, even if foreseeable, as a result of which such Party is unable to perform its obligations, in whole or in part, under this Agreement. Such circumstances include, but are not limited to, any strike, factory closure, explosion, maritime peril, natural disaster, act by a public enemy, fire, flood, accident, war, riot, insurgence or any other similar event.

 

11.2     Should the affected Party be prevented from performing its obligations hereunder due to any force majeure event, the aforesaid obligations shall be suspended during the continuation of such force majeure event, and the time for performing such obligations shall be extended automatically until the force majeure event ends. The affected Party shall not be liable for its non-performance during the force majeure event.

 

11.3     Any Party encountering a force majeure event shall forthwith notify the other Parties in writing and supply proper evidence of the inception of the force majeure event and its continuing period. Such Party shall make every reasonable endeavor to mitigate the damages of such event of force majeure.

 

11.4     If a force majeure event occurs, the Parties shall forthwith negotiate a fair solution, and shall make any and all reasonable efforts to minimize the effects of any event of force majeure.

 

11.5     If the force majeure event lasts over ninety (90) days and the Parties fail to reach any agreement on a just solution, any of the Parties shall be entitled to terminate this Agreement. In case of termination of this Agreement pursuant to the aforesaid provision, none of the Parties shall have any rights or obligations subsequent thereto, but the rights and obligations of each Party arising hereunder before such termination shall not be affected.

 

12.            Dispute Resolution

 

12.1     The PRC law shall govern the execution, validity, interpretation, amendment, termination and resolution of disputes arising out of this Agreement. The PRC law referred to herein does not include the laws of Taiwan, the Hong Kong Special Administration Region or the Macau Special Administration Region.

 

12.2    Any dispute arising from or related to this Agreement shall be settled first through friendly negotiations. If such dispute cannot be settled within thirty (30) days after the start of negotiations, it shall be submitted to the China International Economic and Trade Arbitration Commission for arbitration and be arbitrated in Beijing, China in accordance with its arbitration rules when such arbitration application was submitted. The arbitral award shall be final and binding upon all Parties. Unless otherwise decided by the arbitration commission, arbitration fees and other expenses in relation to such arbitration shall be borne by the losing Party.

 

13.           Notice

 

13.1     Any notice or other communication sent by any Party shall be written in Chinese, and sent by mail or facsimile transmission to the addresses of the other Parties set forth below or to other designated addresses previously notified by any such other Party. If any Party changes its address, it shall notify the other Parties of such change in a timely and effective manner. The dates on which such notices are deemed to have been effectively given shall be determined as follows:

 

(A)            Notices given by personal delivery shall be deemed effectively given on the date of personal delivery;

(B)            Notices sent by registered airmail (postage prepaid) shall be deemed effectively given on the seventh (7th) day after the date on which they were mailed (as indicated by the postmark), or notices sent by a courier recognized by the Parties shall be deemed effectively given on the third (3rd) day after they were sent to such courier service agency; and

(C)            Notices sent by facsimile transmission shall be deemed effectively given on the first (1st) business day following the date of transmission, as indicated on the document.

 

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Pledgee: Beijing Zhong Zhi Shi Zheng Data Information Technology Co., Ltd.
 Address: Room 208A, 2nd Floor, Building No. 14, South District of No. 46 Zhongguancun South Street, Haidian District, Beijing
 Fax: [REDACTED] 
 Tel: [REDACTED]

 

Pledgor I: Tianquan Mo
 Address: Tower A, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing 
 Fax: [REDACTED] 
 Tel: [REDACTED]

 

Pledgor II: Yu Huang
 Address: Tower A, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing 
 Fax: [REDACTED] 
 Tel: [REDACTED]

 

14.            Schedule

 

14.1     The schedules contained herein constitute an integral part of this Agreement.

 

15.            Effectiveness

 

15.1     This Agreement and any amendment, supplement or modification hereto shall be made in writing and come into force upon execution and seal of the Parties.

 

15.2     This Agreement is made in Chinese with five (5) copies.

 

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[Signature Page to Equity Pledge Agreement]

 

 

Pledgee (Seal): Beijing Zhong Zhi Shi Zheng Data Information Technology Co., Ltd.

 

	
Legal representative or authorized agent   (Signature):
    	
/s/ Tianquan Mo
    	
 
    

 

 

	
Pledgor I: Tianquan Mo
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Tianquan Mo
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Pledgor II: Yu Huang
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Yu Huang
    	
 
    

 

 

Date: June 11, 2018

 

7Exhibit 10.16

 

SHAREHOLDERS’ PROXY AGREEMENT

 

This Agreement is made and entered into by the Parties below on June 11, 2018 in Beijing.

 

1.                        Beijing Zhong Zhi Shi Zheng Data Information Technology Co., Ltd. (“Beijing Zhong Zhi Shi Zheng”) Registered Address: Room 208A, 2nd Floor, Building No. 14, South District of No. 46 Zhongguancun South Street, Haidian District, Beijing;

 

2.                        Beijing Zhong Zhi Hong Yuan Data Information Technology Co., Ltd. (“Beijing Zhong Zhi Hong Yuan”) Registered Address: Room 1105, 11th Floor, Building No. 2, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing;

 

3.                        Tianquan Mo

PRC ID No.: [REDACTED]

Address: Tower A, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing

 

4.                        Yu Huang

PRC ID No.: [REDACTED]

Address: Tower A, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing

 

Tianquan Mo and Yu Huang are hereinafter collectively referred to as the “Shareholders.”

 

WHEREAS

 

1.                        The Shareholders are all the current shareholders of Beijing Zhong Zhi Hong Yuan, holding all the equity interests in Beijing Zhong Zhi Hong Yuan; and

 

2.                        Each of the Shareholders intends to appoint Beijing Zhong Zhi Shi Zheng to act as its proxy to exercise its voting rights in Beijing Zhong Zhi Hong Yuan, and Beijing Zhong Zhi Shi Zheng intends to accept such appointment.

 

The Parties through friendly negotiations hereby agree as follows:

 

Article 1   Proxy

 

1.1                 The Shareholders hereby irrevocably appoint Beijing Zhong Zhi Shi Zheng, to act as proxy for the Shareholders to exercise their respective rights described below (the “Proxy Rights”) which the Shareholders are entitled to as shareholders of Beijing Zhong Zhi Hong Yuan under the Articles of Association of Beijing Zhong Zhi Hong Yuan then in effect:

 

(1)                   to represent the Shareholders to attend meetings of shareholders (“Shareholders Meetings”) of Beijing Zhong Zhi Hong Yuan;

 

(2)                   to represent the Shareholders to vote on all matters to be discussed and resolved by the Shareholders;

 

(3)                   to propose to convene interim Shareholders Meetings;

 

(4)                   other shareholders’ voting rights under the Articles of Association of Beijing Zhong Zhi Hong Yuan  (including any other shareholders’ voting rights provided in the amendments to such Articles of Association, if any).

 

1.2                 The Shareholders shall recognize any legal consequence arising out of exercising the aforesaid Proxy Rights by Beijing Zhong Zhi Shi Zheng and shall bear corresponding responsibilities therefor.

 

1.3                 The Shareholders hereby confirm that Beijing Zhong Zhi Shi Zheng can exercise the aforesaid Proxy Rights without seeking the opinions of the Shareholders. Beijing Zhong Zhi Shi Zheng shall notify the Shareholders in a timely manner of any resolution, or any proposal to hold interim Shareholders Meetings, after such resolution or proposal is made.

 

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Article 2   Rights to Know

 

2.1                 In order to exercise the Proxy Rights hereunder, Beijing Zhong Zhi Shi Zheng is entitled to inspect all relevant information about the operations, businesses, customers, finances, employees and the like of Beijing Zhong Zhi Hong Yuan, and refer to any relevant materials and documents of Beijing Zhong Zhi Hong Yuan and Beijing Zhong Zhi Hong Yuan shall render its full cooperation.

 

Article 3   Exercise of the Proxy Rights

 

3.1                 The Shareholders shall recognize that Beijing Zhong Zhi Shi Zheng may re-appoint, when necessary, specific person(s) in itself, to act as proxy for Beijing Zhong Zhi Shi Zheng to exercise any or all of its Proxy Rights within the scope of Article 1 and the Shareholders shall agree to bear all corresponding legal responsibilities.

 

3.2                 The Shareholders shall render full assistance to Beijing Zhong Zhi Shi Zheng in exercising its Proxy Rights, including the timely signing of resolutions of the Shareholders Meetings or other relevant legal documents of Beijing Zhong Zhi Hong Yuan when necessary (e.g. upon the request of government departments to submit documents for examination and approval, registration and reference).

 

3.3                 If, at any time during the term of this Agreement and for any reason, the Proxy Rights hereunder cannot be granted or exercised (except for breach of this Agreement by the Shareholders or Beijing Zhong Zhi Hong Yuan), the Parties shall forthwith seek a substitute similar to this Agreement, and sign, when necessary, a supplemental agreement to amend or modify the terms and conditions herein in order to ensure the continuing performance of this Agreement.

 

Article 4   Exemption and Compensation

 

4.1                 The Parties hereby confirm that Beijing Zhong Zhi Shi Zheng shall not be required to bear any responsibility for, or make any compensation, financially or otherwise, to the other Parties or any third party, with respect to the exercise of the Proxy Rights under this Agreement.

 

4.2                 The Shareholders and Beijing Zhong Zhi Hong Yuan hereby agree to indemnify Beijing Zhong Zhi Shi Zheng for, and hold it harmless against, all losses suffered or likely to be suffered from exercising the Proxy Rights, including but not limited to any loss resulting from any litigation, collection, arbitration, claim or administrative investigation or punishment by governmental agency brought by any third party. However, losses due to intentional or serious misconduct of Beijing Zhong Zhi Shi Zheng shall not be compensated.

 

Article 5   Representations and Warranties

 

5.1                 The Shareholders hereby respectively and jointly represent and warrant as follows:

 

5.1.1       Each party is a PRC citizen with full capacity for civil conduct, and has full and independent legal status and capacity to sign, deliver and perform this Agreement. It can become a party as the subject of litigation independently.

 

5.1.2       Each party has full power to sign and deliver this Agreement and all other documents related to the transactions described herein and to be signed by such party  and each party  has full power to complete the transactions described in this Agreement. This Agreement shall be binding upon, and may be enforced against, such Party in accordance with the terms and conditions hereunder.

 

5.1.3       Each party  is a legal shareholder of Beijing Zhong Zhi Hong Yuan at the time this Agreement comes into force. Other than the rights defined under this Agreement, no third-party rights exist in the Proxy Rights. Under this Agreement, Beijing Zhong Zhi Shi Zheng may fully and completely exercise such Proxy Rights in accordance with the Articles of Association of Beijing Zhong Zhi Hong Yuan then in effect.

 

5.2                 Beijing Zhong Zhi Shi Zheng and Beijing Zhong Zhi Hong Yuan hereby respectively represent and warrant as follows:

 

5.2.1       Each party is a company with limited liability duly organized and validly existing under the laws where it is registered, with the qualification of independent legal person and fully independent legal status, and is legally competent to execute, deliver and undertake this Agreement. It can become a party as the subject of litigation independently.

 

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5.2.2       Each party has full power and authorization to sign and deliver this Agreement and all other documents related to the transactions described herein and to be signed by such party; and each party has full power and authorization to complete the transactions described in this Agreement.

 

5.3                 Beijing Zhong Zhi Hong Yuan hereby declares and warrants as follows:

 

5.3.1       The Shareholders are all the legal shareholders registered in Beijing Zhong Zhi Hong Yuan when this Agreement comes into force. Under this Agreement, Beijing Zhong Zhi Shi Zheng can fully and completely exercise its Proxy Rights in accordance with the Articles of Association of Beijing Zhong Zhi Hong Yuan then in effect.

 

Article 6   Term of this Agreement

 

6.1                 This Agreement shall come into force upon due execution on the date first written above. Unless it is agreed in writing by the parties herein to terminate in advance, the term of this Agreement shall be extended indefinitely, provided that any of the Shareholders remains a shareholder of Beijing Zhong Zhi Hong Yuan.

 

6.2                 If any of the Shareholders transfers all its equity interest in Beijing Zhong Zhi Hong Yuan with prior consent of Beijing Zhong Zhi Shi Zheng, such party shall no longer be a party herein, but the obligations and undertakings of the other parties herein shall not be affected.

 

Article 7   Notice

 

7.1                 Any notice or other communication sent by any Party shall be written in Chinese, and sent by mail or facsimile transmission to the addresses of the other Parties set forth below or to other designated addresses previously notified by any such other Party. If any Party changes its address, it shall notify the other Parties of such change in a timely and effective manner. The dates on which such notices are deemed to have been effectively given shall be determined as follows:

 

(A)                 Notices given by personal delivery shall be deemed effectively given on the date of personal delivery;

 

(B)                 Notices sent by registered airmail (postage prepaid) shall be deemed effectively given on the seventh (7th) day after the date on which they were mailed (as indicated by the postmark), or notices sent by a courier recognized by the Parties shall be deemed effectively given on the third (3rd) day after they were sent to such courier service agency; and

 

(C)                 Notices sent by facsimile transmission shall be deemed effectively given on the first (1st) business day following the date of transmission, as indicated on the document.

 

Beijing Zhong Zhi Shi Zheng Data Information Technology Co., Ltd.
 Address: Room 208A, 2nd Floor, Building No. 14, South District of No. 46 Zhongguancun South Street, Haidian District, Beijing
 Fax: [REDACTED]
 Tel: [REDACTED]
 Attention: Tianquan Mo

 

Beijing Zhong Zhi Hong Yuan Data Information Technology Co., Ltd.
 Address: Room 1105, 11th Floor, Building No. 2, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing
 Fax: [REDACTED]
 Tel: [REDACTED]
 Attention: Tianquan Mo

 

Shareholder: Tianquan Mo
 Address: Tower A, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing 
 Fax: [REDACTED]
 Tel: [REDACTED]

 

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Shareholder: Yu Huang
 Address: Tower A, No. 20 Guogongzhuang Middle Street, Fengtai District, Beijing 

Fax: [REDACTED]
 Tel: [REDACTED]

 

Article 8   Breach and Liabilities

 

8.1                 The parties herein hereby agree and confirm that if one party (“Breaching Party”) materially breaches any of the agreed terms and conditions under this Agreement, or materially fails to perform any of its obligations herein, such Breaching Party shall be deemed to have breached this Agreement (“Breach”), any of the other non-breaching parties (“Non-Breaching Parties”) is entitled to request the Breaching Party to redress or take remedial measures within a reasonable time period. If the Breaching Party, within a reasonable time period or within thirty (30) days upon receiving the written notice from any Non-Breaching Party requesting redress, but fails to redress or take remedial measures, then (1) Beijing Zhong Zhi Shi Zheng shall be entitled to terminate this Agreement and claim damages from the Breaching Party should the Shareholders or Beijing Zhong Zhi Hong Yuan breach this Agreement; (2) the Non-Breaching Parties shall be entitled to claim damages but not be entitled to terminate or abrogate this Agreement or trust herein should Beijing Zhong Zhi Shi Zheng breach this Agreement.

 

8.2                 Notwithstanding the other provisions herein, the validity of this Article shall not be affected by the suspension or termination of this Agreement.

 

Article 9   Miscellaneous

 

9.1                 This Agreement is made in Chinese with four (4) original copies in total, each Party to hold one.

 

9.2                 The Laws of the People’s Republic of China shall govern the conclusion, effectiveness, performance, amendment, interpretation and termination of this Agreement. The Laws of the People’s Republic of China referred to herein does not include the laws of Taiwan, the Hong Kong Special Administration Region or the Macau Special Administration Region.

 

9.3                 Any dispute arising hereof or other relevant disputes shall be settled through negotiations. If such dispute cannot be settled within thirty (30) days after the negotiations start, it shall be submitted to the China International Economic and Trade Arbitration Commission and arbitrated in Beijing in accordance with the arbitration rules of such arbitration commission. The arbitration award shall be accepted as final and binding upon the Parties.

 

9.4                 Any rights, power or remedy of the parties under any term and conditions herein shall not deprive such parties of any other rights, power or remedy under the laws and this Agreement. A party’s exercise of its rights, power and remedy shall not affect the exercise of its other rights, powers and remedies.

 

9.5                 One party’s failure to exercise or delay in exercising any of its rights, powers or remedies (“Rights of Such Party”) under this Agreement or laws shall not lead to the waiver of the Rights of Such Party. Any individual or partial waiver of the Rights of Such Party shall not deprive such party’s rights in exercising in other ways of the Rights of Such Party or exercise other rights of such party.

9.6                 The title of each article is for reference and shall under no circumstance be used for, or affect, the interpretation of the terms and conditions hereunder.

 

9.7                 Any of the terms and conditions hereunder can be severed and independent from the others. If one or more of such terms and conditions shall be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining terms and conditions hereunder shall not be in any way affected or impaired.

 

9.8                 Any amendment and supplement to this Agreement shall be made in writing, and come into force upon proper signature by the parties herein.

 

9.9                 Without the prior written consent of the other parties herein, any party shall not transfer any of its rights and/or obligations hereunder to any third party.

 

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9.10          This Agreement shall be binding upon each party’s legal successors and transferees permitted by the other parties as if they were a contracting party to this Agreement.

 

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[Signature Page to Shareholders’ Proxy Agreement]

 

 

Beijing Zhong Zhi Shi Zheng Data Information Technology Co., Ltd. (Seal)

	
Legal representative or authorized agent (Signature):
    	
/s/ Tianquan Mo
    	
 
    

 

 

Beijing Zhong Zhi Hong Yuan Data Information Technology Co., Ltd. (Seal)

	
Legal representative or authorized agent (Signature):
    	
/s/ Yu Huang
    	
 
    

 

 

Tianquan Mo

 

	
Signature:
    	
/s/ Tianquan Mo
    	
 
    

 

Yu Huang

 

	
Signature: 
    	
/s/ Yu Huang
    	
 
    

 

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