Document:

Exhibit 4.46

 

Development Cooperation Agreement

 

THIS AGREEMENT (“this Agreement”) is entered into by and between the two parties below in Beijing on December 10, 2013.

 

Party A: Beijing Perfect World Digital Technology Co., Ltd.

Address: A801, Floor 8, Building 1, Yard No. 1 Shangdi East Road, Haidian District, Beijing

 

Party B: Beijing Perfect World Game Software Co., Ltd.

Address: Room 5465, Building 3, No. 3 Xijing Road, Badachu Hi-tech Park, Shijingshan District, Beijing

 

WHEREAS:

 

1. Party A is a limited liability company incorporated and existing under the laws of the People’s Republic of China (hereinafter referred to as “China”), which is engaged in Internet information services;

 

2. Party B is a wholly foreign-owned enterprise incorporated and existing under Chinese laws, which is engaged in the R & D and transfer of software technologies, technology consultancy and technology services;

 

3. Both parties cooperate to develop, jointly own the intellectual property rights and share the proceeds from such rights on an agreed percentage.

 

NOW, THEREFORE, through friendly negotiations and abiding by the principle of equality and mutual benefit, both parties hereby agree as follows:

 

1. Technology Development Work: Sole and Exclusive Interests

 

1.1 During the valid term of this Agreement, Party B agrees to, as Party A’s exclusive technology development provider, render to Party A relevant technology development work and results with respect to the software technologies required for all business operations of Party A pursuant to the provisions of this Agreement.

 

1.2 Party A agrees to accept the technology development work and results provided by Party B within the valid term of this Agreement and authorize Party B to complete the technology development matters required for all its business operations. Given the value of the technology development work provided by Party B and the good cooperation relationships between both parties, Party A further agrees that within the term of this Agreement, it will not accept any third party as its technology development provider without Party B’s prior written 

 

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consent.

 

1.3 Any and all intellectual property rights (including, but not limited to, copyright, patent right, know-how, trade secrets, etc) resulting from the performance by Party B of the technology development work under this Agreement, whether development is carried out by Party B independently or on the basis of Party A’s intellectual property rights, shall be jointly owned by both parties, and both parties share the proceeds from such rights on an agreed percentage.

 

1.4 In consideration of the good cooperation relationships between both parties, Party A undertakes that if it intends to engage in any business cooperation with any other enterprises, it shall obtain the prior consent of Party B and under the equal conditions, Party B or any of its affiliates shall be entitled to the cooperation priority right.

 

2. Technology Development Royalty (“Royalty”)

 

2.1 Party A shall pay technology development royalty with respect to its use of the intellectual property rights arising from Party B’s development. The royalty under this Agreement is 50%-70% of the business income calculated by the billing system of Party A’s relevant project in connection with the technology development implemented by Party B on the basis of this Agreement, as confirmed by both parties. The specific percentage shall be determined by both parties depending on the actual situation of services rendered.

 

2.2 The percentage of royalty is based on the following factors:

 

2.2.1 the technical difficulty and complexity of technology development work and results;

 

2.2.2 the time and expenses spent by Party B and its employees on technology development work and results;

 

2.2.3 the specifics and commercial value of technology development work and results; and

 

2.2.4 the market reference price of the same type of technology development work and results.

 

2.3 Party B will summarize the royalty on a monthly basis and within the first 15 days of any month, issue the bill for previous month’s technology development royalty in writing to Party A. Within 10 workdays after receiving this notice, Party A shall pay the royalty to the bank account designated by Party B.

 

2.4 If both parties are of the opinion that the pricing mechanism of the work and results as set out in this Article becomes

inappropriate for whatsoever reason and needs to be adjusted, 

 

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either party shall, within 10 workdays after receiving the written notice about fee adjustment from the other party, negotiate actively and in good faith so as to determine the new fee standard or mechanism. If the recipient fails to reply within 10 workdays hereof, it shall be deemed as having accepted the royalty adjustment.

 

2.5 Party B shall be entitled to assign its employee or an intermediary in China or abroad (hereinafter referred to as “Party B’s Authorized Representative”) to check Party A’s billing system at its own expenses so as to verify the calculation method and amount of royalty. For this purpose, Party A shall provide Party B’s Authorized Representative with the documents, accounts, records, data, etc as required by Party B’s Authorized Representative so that Party B’s Authorized Representative determines the sum of royalty.

 

2.6 Unless otherwise agreed upon by both parties, the royalty paid by Party A to Party B according to this Agreement shall be free and clear of any deduction or setoff (e.g. bank service charge, etc).

 

2.7 Party B is entitled to request Party A to make the commitment about the minimum sum of the royalty for each product developed by Party B. Where the royalty is below the minimum sum for Party A’s reason, Party B is entitled to request Party A to make payment at the minimum sum.

 

3. Representations and Warranties

 

3.1 Party B hereby makes the following representations and warranties:

 

3.1.1 Party B is a company duly incorporated and validly existing under Chinese laws;

 

3.1.2 Party B performs this Agreement within its authority and business scope; it has obtained necessary authorization as well as the consents and approvals from third parties or government departments and does not violate the legal or contractual restrictions binding upon or influencing it;

 

3.1.3 Upon the execution, this Agreement shall constitute a legal instrument that is legal, valid, binding and enforceable for Party B.

 

3.2 Party A hereby makes the following representations and warranties:

 

3.2.1 Party A is a company duly incorporated and validly existing under Chinese laws;

 

3.2.2 Party A signs and performs this Agreement within its authority and business scope; it has obtained necessary authorization as well as the consents and approvals from third parties or government departments and does not violate the legal or contractual restrictions binding upon or influencing it;

 

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3.2.3 Once signed, this Agreement shall constitute a legal instrument that is legal, valid, binding and enforceable for Party A.

 

4. Confidentiality

 

4.1 Party A and Party B agree to take reasonable measures to keep in confidence the confidential data and information (“Confidential Information”) made available to or given access to them (when the data and information provider provides the data and information, it shall give a written statement indicating their confidentiality); without the prior written consent of the Confidential Information provider, shall not disclose, give or transfer the Confidential Information (including the merger of the Confidential Information recipient with or by any third party or its direct or indirect control by any third party) to any third party. Once this Agreement is terminated, Party A or Party B shall return all documents, materials or software containing the Confidential Information to the original owner or provider of the Confidential Information or destroy them with the consent of the original owner or provider, including delete any Confidential Information from all memory devices concerned and not continue to use such Confidential Information. Party A shall take necessary measures to disclose the Confidential Information only to Party A’s employees, agents or consultants on a need-to-know basis, and cause Party A’s such employees, agents or consultants to comply with the confidentiality obligations under this Agreement. Party A shall sign specific confidentiality agreements with Party B as well as Party A’s employees, agents or consultants and each party shall follow such agreements.

 

4.2 The above confidentiality obligations shall not apply to the information which:

 

4.2.1 already enters the public domain at the time of disclosure;

 

4.2.2 is publicly available after disclosure other than through the fault of Party A or Party B;

 

4.2.3 is already possessed by Party A or Party B before disclosure and not received from other parties directly or indirectly, which is supported by the evidence;

 

4.2.4 is disclosed by Party A or Party B to relevant government department, stock agency, etc under requirement of law or is disclosed by Party A or Party B to its direct legal counsel and financial consultant to the extent required by its normal operations.

 

4.2.5 Both parties agree that this article shall survive the modification, rescission or termination of this Agreement.

 

5. Indemnity

 

5.1 Except as otherwise specified herein, should Party A fail to fully perform or suspend the performance of its obligations under this Agreement and not cure its acts within 30 days upon receipt of the notice of Party B, or its representations and warranties are untrue, Party A shall 

 

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be deemed to be in breach of this Agreement.

 

5.2 Where either party (“Breaching Party”) breaches this Agreement or any of its representations and warranties under this Agreement, the other party (“Non-breaching Party”) may give a written notice to the Breaching Party, requesting it to cure its breach within 10 days upon receipt of this notice, take relevant effective measures to avoid damages in time and continue to perform this Agreement. If damages are caused, the Breaching Party shall make compensations to the Non-breaching Party so that the Non-breaching Party obtains all acquirable rights and interests arising from performance of this Agreement.

 

5.3 Where the Breaching Party causes the Non-breaching Party to bear any expenses, responsibilities or losses (including, without limitation, loss of profits, loss of interest, lawyer’s fee, etc caused by such default), the Breaching Party shall compensate them to the Non-breaching Party. The total compensation paid by the Breaching Party to the Non-breaching Party shall be equal to the losses caused by such breach. The above compensation shall contain the interests obtainable by the Non-breaching Party from its performance of this Agreement and not exceed the reasonable expectation of both parties.

 

5.4 Party A shall be fully responsible for any and all claims made by any person due to Party A’s failure to comply with Party B’s instructions or improper use of Party B’s intellectual property rights or inappropriate technical operations. Where Party A finds that any person uses Party B’s intellectual property rights without lawful authorization, Party A shall forthwith notify Party B and assist in any action taken by Party B.

 

5.5 If both parties violate this Agreement, their compensations shall be determined in proportion to the extent of their respective breaches.

 

6. Effectiveness, Performance and Term

 

6.1 This Agreement shall be signed and come into effect as of the date first above written.

 

6.2 Except termination by both parties in advance, this Agreement shall be valid until December 10, 2033. Before the expiration of this Agreement, both parties shall, upon request by Party B, extend the term of this Agreement and sign another exclusive technology development agreement separately or continue to perform this Agreement.

 

7. Termination

 

7.1 Within the valid term of this Agreement, if Party A terminates this Agreement prematurely 

 

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without good reasons, it shall compensate all losses thus incurred to Party B, along with the royalty of already completed services.

 

7.2 This Agreement may be terminated by a mutual consent.

 

7.3 The rights and obligations of both parties under Articles 4 and 5 hereof shall survive the termination of this Agreement.

 

8. Settlement of Disputes

 

8.1 Any dispute arising in connection with the interpretation and performance of the provisions of this Agreement shall be settled by both parties in good faith and through amicable negotiations. In case no settlement can be reached, either party may submit such dispute to Beijing Arbitration Commission for arbitration in accordance with its arbitration rules then in effect. The arbitral award shall be final and binding upon both parties. This provision shall not be affected by the termination or rescission of this Agreement. Arbitration costs (including but not limited to arbitration fees and counsel fees) shall be borne by the losing party, unless otherwise awarded by the arbitral award.

 

8.2 Except for the matters involved in a dispute, both parties shall continue to perform their respective obligations under this Agreement in good faith.

 

9. Force Majeure

 

9.1 An Event of Force Majeure means any event that is beyond the reasonable control of either party and unavoidable or unpreventable after it gives due attention, including, but not limited to, government act, act of God, fire, explosion, storm, flood, earthquake, tide, lightning or war, but insufficiency of credit standing, funds or financing shall not be deemed to be beyond the reasonable control of either party. The party seeking the exemption from its liabilities under this Agreement due to an Event of Force Majeure shall, without undue delay, inform the other party of such exemption and the steps required to be taken to perform its liabilities.

 

9.2 Should the performance of this Agreement be delayed or hindered due to any Event of Force Majeure as defined above, the prevented party shall not be liable therefor only to the extent being delayed or hindered. The prevented party shall take suitable measures to lower or eliminate the impact of such Event of Force Majeure, and make endeavors to resume the performance of the obligations delayed or hindered by Event of Force Majeure. Both parties agree to try their best efforts to continue to perform this Agreement once the Event of Force 

 

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Majeure is eliminated.

 

10. Notice

 

Any notice required to be made by the Parties when performing the rights and obligations hereunder shall be in the written form and delivered to the following address of the Parties involved by personal delivery, registered mail, certified mail (postage prepaid), recognized courier service or fax:

 

Party A: Beijing Perfect World Digital Technology Co., Ltd.

Address: A801, Floor 8, Building 1, Yard No. 1 Shangdi East Road, Haidian District, Beijing

Post Code:

Attn:

Fax:

Phone:

E-mail :

 

Party B: Beijing Perfect World Game Software Co., Ltd.

Address: Room 5465, Building 3, No. 3 Xijing Road, Badachu Hi-tech Park, Shijingshan District, Beijing

Post Code:

Attn:

Fax:

Phone:

E-mail :

 

11. Transfer

 

Without Party B’s prior written consent, Party A shall not transfer its rights and obligations hereunder to any third party. Party B may transfer its rights and obligations hereunder to any of its affiliates without Party A’s consent, but such transfer shall be notified to Party A.

 

12. Severability

 

Each party hereby acknowledges that this Agreement is signed by following the principles of equality and mutual benefit and its provisions are fair and reasonable. Should any provision of this Agreement be held invalid or unenforceable by applicable law, such provision shall be invalid or unenforceable only to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remainder of this Agreement.

 

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13. Amendments and Supplements

 

This Agreement may be amended or supplemented by a written instrument. All amendments and supplements to this Agreement duly signed by both parties shall form an integral part of this Agreement and have the same legal effect as this Agreement.

 

14. Miscellaneous

 

14.1 The formation, validity, performance and interpretation of and settlement of disputes in connection with this Agreement shall be governed and construed by the Chinese laws.

 

14.2 Both parties may sign a separate technology development contract with respect to a specific project in accordance with this Agreement. Such separate project development contract is intended for detailing and supplements to this Agreement. This Agreement shall apply to anything not covered in this separate project development contract. In case of any discrepancy between separate project development contract and this Agreement, this Agreement shall prevail.

 

14.3 This Agreement is executed in duplicate, with each party hereto holding one (1) copy. Both copies shall be equally authentic. This Agreement shall become effective on and as of its date of execution.

 

IN WITNESS WHEREOF, both parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the day and the year first above written.

 

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(Signature page, no text below)

 

Party A: /s/ Beijing Perfect World Digital Technology Co., Ltd.

 

Party B: /s/ Beijing Perfect World Game Software Co., Ltd.

 

9Exhibit 4.47

 

Business Operation Agreement

 

This Business Operation Agreement (hereinafter referred to as “this Agreement”) is hereby made and concluded by and between the following Parties in Beijing, People’s Republic of China (hereinafter referred to as “China”) on December 10, 2013.

 

Party A: Beijing Perfect World Game Software Co., Ltd.

Address: Room 5465, Building 3, No. 3 Xijing Road, Badachu Hi-tech Park, Shijingshan District, Beijing

 

Party B: Beijing Perfect World Digital Technology Co., Ltd.

Address: A801, Floor 8, Building 1, Yard No. 1 Shangdi East Road, Haidian District, Beijing

 

Party C: Yufeng Chi

ID No.: ***

 

Party D: Xiaoxi Yang

ID No.: ***

 

Whereas:

 

1. Party A is an existing wholly foreign-owned enterprise legally established in China.

 

2. Party B is a limited liability company incorporated in China dealing with the Internet information service;

 

3. Party A and Party B have established business relations through signing the Exclusive Technology Consultation and Service Agreement and other agreements on December 10, 2013, under which Party B shall effect payments to Party A. Therefore, Party B’s daily business operations will have a material impact on its capacity of paying the corresponding amount to Party A;

 

4. Party C and Party D are stockholders of Party B (hereinafter referred to as “Party B’s stockholders”), holding 90% and 10% of Party B’s equity, respectively.

 

Accordingly, the Parties, on the principle of equality and mutual benefit and through amicable negotiation, hereby agree as follows:

 

1. Obligation of Omission

 

To ensure that Party B performs the agreements concluded with Party A and the obligations thereunder towards Party A, Party B’s stockholders hereby acknowledge and agree that,

 

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without the prior written consent of Party A or the Party (Parties) designated by Party A, Party B will not be engaged in any transaction that may substantially influence Party B’s assets, business, personnel, obligations, rights or operations as confirmed by Party A, including but not limited to:

 

1.1 engage in any activity that is beyond Party B’s normal business scope or operate the company business in a way not consistent with the past or not usual;

 

1.2 borrow a single amount of over RMB 400,000 from any third party or assume any debt of over RMB 400,000;

 

1.3 change or dismiss Party B’s directors, or replace any senior managers thereof;

 

1.4 sell or acquire any assets or rights to or from any third party, including but not limited to any intellectual property rights;

 

1.5 provide a security for any third party by means of Party B’s assets, intellectual property rights or any other form of security, or set any encumbrance on its assets;

 

1.6 amend Party B’s articles of association or change its business scope;

 

1.7 change Party B’s normal operation procedures or amend any of its significant internal rules and regulations;

 

1.8 transfer Party B’s right and obligations hereunder to any third party.

 

2. Operation Management and Personnel Arrangement

 

2.1 Party B and Party B’s stockholders hereby agree to accept and strictly execute the advice raised by Party A from time to time concerning the recruitment and dismissal, daily operation management as well as the financial management system of Party B.

 

2.2 Party B and Party B’s stockholders hereby agree to elect the candidates designated by Party A as Party B’s directors in accordance with the procedures specified in the laws, regulations and Party B’s articles of association, and ensure that the elected directors will elect the chairman of board of directors among the candidates recommended by Party A and appoint the personnel designated by Party A as Party B’s general manager, chief financial officer and other senior managers.

 

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2.3 In the event that any of the above-mentioned director or senior manager designated by Party A no longer serves Party A, whether he/she resigns or is dismissed by Party A, he/she will lose the qualification of holding any post at Party B at the same time. In this case, Party B’s stockholders will elect another candidate designated by Party A to fill the vacancy.

 

2.4 For the purpose specified in 2.3, Party B’s stockholders will take any and all internal and external procedures necessary to fulfill the foregoing dismissal and recruitment in line with the laws, Party B’s articles of association and the provisions prescribed herein.

 

2.5 Party B’s stockholders hereby agree to sign the power of attorney attached hereto as the Appendix 1 at the time of signing this Agreement. According to the power of attorney, Party B’s stockholders will irrevocably authorize Party A’s designee to exercise their rights as stockholders and to exercise all voting rights enjoyed by Party B’s stockholders at the general meeting of Party B’s stockholders. Party B’s stockholders further agree to replace the authorized person in the power of attorney upon Party A’s request from time to time.

 

3. Other Provisions

 

3.1 Upon the termination or expiry of any agreement concluded between Party A and Party B, Party A shall have the right to determine whether or not to terminate all the agreements between them, including but not limited to the Exclusive Technology Consultation and Service Agreement.

 

3.2 Considering that Party A and Party B have established business relations by signing the Exclusive Technology Consultation and Service Agreement and other agreements, Party B’s daily business operations will have a material impact on its capacity of paying the corresponding amount to Party A. Party B’s stockholders agree that, to the extent permitted by Chinese policies and relevant laws and regulations, relevant laws and regulations, all dividends, bonuses or any other proceeds or benefits (in whatsoever form) obtained by them as Party B’s stockholders from Party B shall be unconditionally forthwith paid or transferred to Party A.

 

4. Entirety and Amendments

 

4.1 This Agreement, along with all agreements and/or documents referred to or contemplated herein, constitutes the entire agreement among the Parties hereto concerning the subject matter hereof and shall supersede any and all previous oral and written agreements, contracts, understandings and communications among the Parties.

 

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4.2 Amendments to this Agreement shall become effective upon the signing of the Parties involved by a written instrument. The amendments and supplements hereto duly signed by the Parties shall form an integral part of this Agreement and have the same legal force as this Agreement.

 

5. Applicable Laws

 

The execution, effectiveness, performance, interpretation and dispute resolution in connection with this Agreement shall be governed and construed by the Chinese laws.

 

6. Dispute Resolution

 

6.1 Any dispute arising from the interpretation and performance of the provisions under this Agreement shall be settled by the Parties in good faith and through amicable negotiations. In case no settlement can be reached, either Party may submit such dispute to the Beijing Arbitration Commission for arbitration in accordance with then effective arbitration rules. The arbitral award shall be final and binding upon the Parties. Arbitration costs (including but not limited to arbitration fees and counsel fee) shall be borne by the losing party, unless otherwise awarded by the arbitral award.

 

6.2 Apart from the matter(s) in dispute, the Parties hereto shall continue to perform their respective obligations prescribed hereunder in good faith.

 

7. Effectiveness, Valid Period and Others

 

7.1 Party A’s written consents, advice, designation and other decisions that have a significant impact upon Party B’s daily operations under this Agreement shall be made by the board of directors of Party A.

 

7.2 This Agreement is signed by the Parties on the day as indicated in the first paragraph hereof and shall come into force upon their signing. The valid term of this Agreement is from the date of signing to December 10, 2033.

 

7.3 Within the valid period of this Agreement, neither Party B nor Party B’s stockholders shall terminate this Agreement in advance. Party A is entitled to terminate this Agreement at any time by giving a written notice thirty (30) days in advance to Party B and Party B’s stockholders.

 

7.4 In case that any clause or provision of this Agreement is determined to be illegal or unenforceable under any applicable law, such clause or provision shall be deemed as deleted 

 

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from this Agreement and become invalid, and the remaining clauses and provisions shall remain in full force and effect. The deleted clause or provision shall be deemed as not included herein from the very beginning. The Parties shall negotiate to replace the deleted clause or provision by one (ones) that is (are) legal, valid and acceptable to the Parties involved.

 

Failure on the part of any Party to exercise any right, power or privilege under this Agreement shall not operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude the exercise of any other rights, powers or privileges.

 

In witness whereof, the Parties hereto have entered into this Agreement by their respective authorized representative on the day as indicated in the first paragraph of this Agreement.

 

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(Signature page with no text)

 

	
Party A:
    	
/s/   Beijing Perfect World Game Software   Co., Ltd.
    
	
 
    	
 
    
	
Party B:
    	
/s/   Beijing Perfect World Digital Technology   Co., Ltd.
    
	
 
    	
 
    	
 
    
	
Party C:
    	
/s/ Yufeng Chi
    	
 
    
	
 
    	
 
    	
 
    
	
Party D:
    	
/s/ Xiaoxi Yang
    	
 
    

 

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