Document:

Exhibit 4.6

 

EXECUTION COPY

 

FOUNDERS NAMED IN EXHIBIT A-1

 

58.COM INC.

 

CHINA CLASSIFIED NETWORK CORPORATION

 

CHINA CLASSIFIED INFORMATION CORPORATION LIMITED

 

BEIJING CHENGSHI WANGLIN INFORMATION TECHNOLOGY CO., LTD.

 

BEIJING 58 INFORMATION TECHNOLOGY CO., LTD.

 

AND

 

WP X ASIA ONLINE INVESTMENT HOLDINGS LIMITED

 

 

SERIES B-1 PREFERENCE SHARE
 SUBSCRIPTION AGREEMENT

 

 

Dated July 23, 2011

 

Orrick, Herrington & Sutcliffe LLP

43rd Floor, Gloucester Tower
 The Landmark
 15 Queen’s Road Central
 Hong Kong

 

 

58.COM INC.

 

SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT

 

THIS SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT (this “Agreement”) is made on July 23, 2011 by and among:

 

(1)                                 The Persons listed in EXHIBIT A-1 (the “Founders” and each a “Founder”);

 

(2)                                 58.COM INC., a company incorporated in the Cayman Islands, with its registered office located at the offices of Codan Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands (the “Company”);

 

(3)                                 CHINA CLASSIFIED NETWORK CORPORATION, a company limited by shares incorporated in the British Virgin Islands, with its registered office at the offices of P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands (the “BVI Subsidiary”);

 

(4)                                 CHINA CLASSIFIED INFORMATION CORPORATION LIMITED  (中国分类信息集团有限公司), a limited liability company incorporated under the laws of Hong Kong, with its registered office at flat 2, 19/F, Henan Building, 90-92 Jaffe Road, Wanchai, Hong Kong (the “HK Subsidiary”);

 

(5)                                 BEIJING CHENGSHI WANGLIN INFORMATION TECHNOLOGY CO., LTD. (北京城市网邻信息技术有限公司), a wholly foreign owned enterprise incorporated in the People’s Republic of China, with its registered office at Building 6 Yi 108 Beiyuan Road, Chaoyang District, Beijing, PRC, 100101, its legal representative being Jinbo YAO (姚劲波) (the “PRC Subsidiary”);

 

(6)                                 BEIJING 58 INFORMATION TECHNOLOGY CO., LTD. (北京五八信息技术有限公司), a limited liability company incorporated in the People’s Republic of China, with its registered office at No. 2 Pingfang Yi 108 Beiyuan Road, Chaoyang District, Beijing, its legal representative being Jinbo YAO (姚劲波) (the “Domestic Enterprise”); and

 

(7)                                 WP X ASIA ONLINE INVESTMENT HOLDINGS LIMITED, a company limited by shares incorporated in the British Virgin Islands, with its registered office at 2/F Palm Grove House, PO Box 3340, Road Town, Tortola, British Virgin Islands (the “Investor”).

 

The Founders, the Company, the BVI Subsidiary, the HK Subsidiary, the PRC Subsidiary, the Domestic Enterprise, and the Investor are hereinafter collectively referred to as the “Parties” and individually as a “Party”.

 

RECITALS

 

A.            Immediately prior to the First Closing (as defined below), the Company shall have an authorized capital consisting of (i) 4,912,433,396 ordinary shares, par value US$0.00001 per share (each an “Ordinary Share”), of  which 44,245,388 have been issued

 

 

and are fully paid up, (ii) 27,028,572 Series A convertible preference shares, par value US$0.00001 per share (each a “Series A Share”), all of which have been issued and are fully paid up, (iii) 19,047,620 Series A-1 convertible preference shares, par value US$0.00001 per share (each a  “Series A-1 Share”), all of which have been issued and are fully paid-up, (iv) 26,247,412 Series B convertible and redeemable preference shares, par value US$0.00001 per share (each a “Series B Share”), all of which has been issued, and (v) 15,243,000 Series B-1 convertible and redeemable preference shares, par value US$0.00001 per share (each a “Series B-1 Share”, together with the Series A Shares, Series A-1 Shares and Series B Shares, the “Preference Shares”), none of which has been issued;

 

B.            The Company desires to issue and allot to the Investor and the Investor desires to subscribe for up to 15,242,995 Series B-1 Shares on the terms and conditions set forth in this Agreement;

 

C.            The Company owns hundred percent (100%) equity interest in the BVI Subsidiary which owns hundred percent (100%) equity interest in the HK Subsidiary, which in turn owns hundred percent (100%) equity interest in the PRC Subsidiary (on a fully diluted basis), free and clear of any Encumbrance (as defined below); and

 

D.            The Domestic Enterprise and the Domestic Subsidiaries (as defined below) shall be engaged in the business of internet information services and such other business activities as set out in its business license in the PRC (as defined below), and exclusively engaging the PRC Subsidiary and the other Group Companies (as defined below) to provide technical support for their business (the “Domestic Principal Business”) and the PRC Subsidiary shall be engaged in the business of the research and development of technologies, and such other business activities as set out in its business license in the PRC (the “PRC Subsidiary Principal Business”).

 

AGREEMENT

 

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

 

1.             DEFINITIONS

 

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

 

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

 

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specified, and   (c) in the case of the Investor being an investment fund (or a   Subsidiary of an investment fund), the term “Affiliate”   shall include any other investment fund (or a Subsidiary of any such   investment fund) managed by the same manager of the Investor (or, if the   Investor is a Subsidiary of an investment fund, the same manager of the   investment fund of which the Investor is a Subsidiary).
    
	
 
    	
 
    	
 
    
	
“Agreement”
    	
 
    	
has the meaning   set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Applicable Laws”
   or “Applicable Law”
    	
 
    	
means, with   respect to any Person, relevant provisions of any constitution, treaty,   statute, law, regulation, ordinance, code, rule, judgment, rule of   common law, order, decree, award, injunction, government approval,   concession, grant, franchise, license, agreement, directive, requirement, or   other governmental restriction or any similar form of decision of, or   determination by, or interpretation and administration of any of the   foregoing by, any Governmental Authority, whether in effect as at the date   hereof or thereafter and in each case as amended or re-enacted, applicable to   such Person or any of its assets or undertakings.
    
	
 
    	
 
    	
 
    
	
“Arbitration Notice”
    	
 
    	
has the meaning   set out in Section 10.4(b).
    
	
 
    	
 
    	
 
    
	
“Associate”
    	
 
    	
means with respect   to any Person, (a) a corporation or organization (other than the Group   Companies) of which such Person is an officer or partner or is, directly or   indirectly, the beneficial owner of ten percent (10%) or more of any class of   equity securities, (b) any trust or other estate in which such Person   has a substantial beneficial interest or as to which such Person serves as   trustee or in a similar capacity, and (c) any relative or spouse of such   Person, or any relative of such spouse who has the same home as such Person.
    
	
 
    	
 
    	
 
    
	
“Board”
    	
 
    	
means the board of   directors of the Company.
    
	
 
    	
 
    	
 
    
	
“Business Day”
    	
 
    	
any day (excluding   Saturdays, Sundays and public holidays in Hong Kong, New York or the PRC) on   which banks generally are open for business in Hong Kong, New York and the   PRC.
    
	
 
    	
 
    	
 
    
	
“BVI Subsidiary”
    	
 
    	
has the meaning   set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Centre”
    	
 
    	
has the meaning   set out in Section 10.4(c).
    
	
 
    	
 
    	
 
    
	
“Closing”
    	
 
    	
has the meaning   set out in Section 3.5.
    
	
 
    	
 
    	
 
    
	
“Closing Account”
    	
 
    	
has the meaning   set out in Section 20 of EXHIBIT G.
    
	
 
    	
 
    	
 
    
	
“Company”
    	
 
    	
has the meaning   set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Confidential
   Information”
    	
 
    	
has the meaning   set out in Section 8.
    

 

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“Confidentiality Agreement”
    	
 
    	
has the meaning   set out in Section 18 of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Constitutional
   Documents”
    	
 
    	
means, with   respect to any Person, the certificate of incorporation, memorandum of   association, articles of association, joint venture agreement, shareholders   agreement, or similar constitutive documents for such Person.
    
	
 
    	
 
    	
 
    
	
“Contract”
    	
 
    	
means any   agreement, arrangement, bond, commitment, franchise, indemnity, indenture,   instrument, lease, license, permit, or binding understanding, whether or not   in writing.
    
	
 
    	
 
    	
 
    
	
“Control”
    	
 
    	
(including the   correlative meanings of the terms “Controlling,”   “Controlled by” and “under common Control with”) means, with respect to any   Person, direct or indirect possession of the power to direct or cause the   direction of the management or policies (with respect to operational or   financial control or otherwise) of such Person, whether through the ownership   of securities, by contract or otherwise.
    
	
 
    	
 
    	
 
    
	
“Conversion Shares”
    	
 
    	
has the meaning   set out in Section 2.3.
    
	
 
    	
 
    	
 
    
	
“Covenantors”
    	
 
    	
means the Group   Companies and the Founders, and “Covenantor”   means any of the Covenantors.
    
	
 
    	
 
    	
 
    
	
“Disclosure
   Schedule”
    	
 
    	
has the meaning   set out in Section 4.1.
    
	
 
    	
 
    	
 
    
	
“Dispute”
    	
 
    	
has the meaning   set out in Section 10.4(a).
    
	
 
    	
 
    	
 
    
	
“Domestic
   Enterprise”
    	
 
    	
has the meaning   set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Domestic Principal
   Business”
    	
 
    	
has the meaning   set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Domestic
   Subsidiaries”
    	
 
    	
means direct or   indirect, current or future Subsidiaries of the Domestic Enterprise   (including without limitation the entities set forth in EXHIBIT N),   and the “Domestic Subsidiary” means any   of the Domestic Subsidiaries.
    
	
 
    	
 
    	
 
    
	
“Encumbrance”
    	
 
    	
means (a) any   mortgage, charge, pledge, lien, hypothecation, deed of trust, title   retention, security interest, or other third-party rights of any kind   securing or conferring any priority of payment in respect of any obligation   of any Person, any other restriction or limitation; (b) any easement or   covenant granting a right of use or occupancy to any Person; (c) any proxy,   power of attorney, voting trust agreement, interest, option, right of first   offer, right of pre-emptive negotiation, or refusal or transfer restriction   in favor of any Person; (d) any
    

 

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adverse claim as   to title, possession, or use, and includes any agreement or arrange for any   of the same.
    
	
 
    	
 
    	
 
    
	
“ESOP”
    	
 
    	
has the meaning   set out in Section 9 of EXHIBIT F.
    
	
 
    	
 
    	
 
    
	
“Financial
   Statements”
    	
 
    	
has the meaning   set out in Section 6(a) of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“First Closing”
    	
 
    	
has the meaning   set out in Section 3.1.
    
	
 
    	
 
    	
 
    
	
“Founder” and
   “Founders”
    	
 
    	
have the   respective meanings set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Government Official”
    	
 
    	
has the meaning   set out in Section 11(c) of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Governmental
   Authority”
    	
 
    	
means any   government or political subdivision thereof, whether on a federal, central,   state, provincial, municipal or local level and whether executive,   legislative or judicial in nature, including any agency, authority, board,   bureau, commission, court, department or other instrumentality thereof.
    
	
 
    	
 
    	
 
    
	
“Group Company
   Contracts”
    	
 
    	
has the meaning   set out in Section 12 of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Group Companies”
    	
 
    	
means the Company,   the BVI Subsidiary, the HK Subsidiary, the PRC Subsidiary, the Domestic   Enterprise, the Domestic Subsidiaries and all other direct or indirect,   current or future Subsidiaries of the foregoing, and the “Group Company” means any of the Group Companies.
    
	
 
    	
 
    	
 
    
	
“HK Subsidiary”
    	
 
    	
has the meaning   set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Hong Kong”
    	
 
    	
means the Hong   Kong Special Administrative Region of the PRC.
    
	
 
    	
 
    	
 
    
	
“Investor”
    	
 
    	
has the meaning   set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Investor Director”
    	
 
    	
means any director   nominated to the Board by holder(s) of more than fifty percent (50%) of   the aggregate number of Ordinary Shares into which the then outstanding   Series B Shares and Series B-1 Shares are convertible.
    
	
 
    	
 
    	
 
    
	
“Key Employee”
    	
 
    	
has the meaning   set out in Section 11 of EXHIBIT G.
    
	
 
    	
 
    	
 
    
	
“knowledge”
    	
 
    	
means, with   respect to a Person’s “knowledge,” the actual knowledge of such Person or that   knowledge which should have been acquired by such Person after making such   due inquiry and exercising such due diligence as a prudent business Person   would have made or exercised in the management of his or her business   affairs, including due inquiry of those officers, directors, key employees   and
    

 

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professional   advisers (including attorneys, accountants and consultants) of the Person and   its Affiliates.
    
	
 
    	
 
    	
 
    
	
“Losses”
    	
 
    	
means all direct   or indirect losses, liabilities, damages, deficiencies, diminution in value,   suits, debts, obligations, interest, penalties, expenses, judgments or   settlements of any nature or kind, including all costs and expenses related   thereto, including without limitation reasonable attorneys’ fees and   disbursements, court costs, amounts paid in settlement and expenses of   investigation, whether at law or in equity, whether known or unknown,   foreseen or unforeseen, of any kind or nature.
    
	
 
    	
 
    	
 
    
	
“Material Adverse
   Effect”
    	
 
    	
means a material   adverse effect on the condition (financial or otherwise), assets relating to,   or results or prospects of operation of or business (as presently conducted   and proposed to be conducted) of the Person(s) specified.
    
	
 
    	
 
    	
 
    
	
“Ordinary Shares”
    	
 
    	
has the meaning   set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Ordinary
   Shareholders”
    	
 
    	
means holders of   the Ordinary Shares, and an “Ordinary Shareholder”   means any of the Ordinary Shareholders.
    
	
 
    	
 
    	
 
    
	
“Party” and
   “Parties”
    	
 
    	
have the   respective meanings set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“Person”
    	
 
    	
shall be construed   as broadly as possible and shall include an individual, a partnership   (including a limited liability partnership), a company, an association, a   joint stock company, a limited liability company, a trust, a joint venture   (including a sino-foreign equity joint venture or sino-foreign cooperative   join venture), an unincorporated organization and a Governmental Authority.
    
	
 
    	
 
    	
 
    
	
“PRC”
    	
 
    	
means the People’s   Republic of China, solely for purposes of this Agreement, excluding Hong   Kong, the Macau Special Administrative Region and Taiwan.
    
	
 
    	
 
    	
 
    
	
“PRC GAAP”
    	
 
    	
means the   generally accepted accounting principles in the PRC in effect from time to   time.
    
	
 
    	
 
    	
 
    
	
“PRC Subsidiary”
    	
 
    	
has the meaning   set out in the Preamble.
    
	
 
    	
 
    	
 
    
	
“PRC Subsidiary
   Principal Business”
    	
 
    	
has the meaning   set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Preamble”
    	
 
    	
means the preamble   of this Agreement.
    
	
 
    	
 
    	
 
    
	
“Preference Shares”
    	
 
    	
has the meaning   set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Proceeds”
    	
 
    	
has the meaning   set out in Section 2 of EXHIBIT F.
    

 

6

 

	
“Proprietary Assets”
    	
 
    	
means all patents,   patent applications, trademarks, service marks, trade names, domain names,   copyrights, copyright registrations and applications and all other rights   corresponding thereto, inventions, databases and all rights therein, all   computer software including all source code, object code, firmware,   development tools, files, records and data, including all media on which any   of the foregoing is stored, formulas, designs, trade secrets, confidential and   proprietary information, proprietary rights, know-how and processes of a   company, and all documentation related to any of the foregoing.
    
	
 
    	
 
    	
 
    
	
“Recitals”
    	
 
    	
means the recitals   of this Agreement.
    
	
 
    	
 
    	
 
    
	
“Registered
   Intellectual
   Property”
    	
 
    	
means all   Proprietary Assets of any Group Company, wherever located, that is the   subject of an application, certificate, filing, registration or other   document issued by, filed with or recorded by any Governmental Authority.
    
	
 
    	
 
    	
 
    
	
“Relevant Period”
    	
 
    	
has the meaning set out in Section 19 of EXHIBIT F.
    
	
 
    	
 
    	
 
    
	
“Restated Articles”
    	
 
    	
has the meaning set out in Section 14 of EXHIBIT F.
    
	
 
    	
 
    	
 
    
	
“Restricted Period”
    	
 
    	
has the meaning set out in Section 19 of EXHIBIT F.
    
	
 
    	
 
    	
 
    
	
“Restructuring
   Documents”
    	
 
    	
means Equity   Pledge Agreements entered into among the PRC Subsidiary, the Domestic   Enterprise, and each shareholder of the Domestic Enterprise dated   August 23, 2010, Exclusive Option Agreements entered into among the PRC   Subsidiary, the Domestic Enterprise, and each shareholder of the Domestic   Enterprise dated March 15, 2010 or August 23, 2010 (as the case may   be); Exclusive Business Cooperation Agreement between the PRC Subsidiary and   the Domestic Enterprise dated March 15, 2010; Power of Attorney from   each of shareholders of the Domestic Enterprise to the PRC Subsidiary dated   March 15, 2010 or August 23, 2010 (as the case may be); Undertaking   Letter from each shareholder of the Domestic Enterprise to the PRC Subsidiary   dated March 15, 2010 or August 23, 2010 (as the case may be) and   Termination Agreement entered into among Chengshi Wangxun (Beijing) Information Technology Co., Ltd. (城市网讯(北京)信息技术有限公司), the Domestic   Enterprise, certain Founders and Shangji Zaixian (Beijing) Network Technology   Co., Ltd. (商机在线(北京)网络技术有限公司) dated March 15, 2010, and any other similar   agreement entered or to be entered into between the Group Companies through which a Group Company Controls   (financially, operationally or otherwise) another Group Company and the financial results for such latter Group Company shall be consolidated into consolidated   financial statements for the Company.
    
	
 
    	
 
    	
 
    
	
“RMB”
    	
 
    	
means the lawful   currency of the PRC.
    
	
 
    	
 
    	
 
    
	
“SAFE”
    	
 
    	
has the meaning   set out in Section 21(c) of EXHIBIT D.
    

 

7

 

	
“SAFE Circular”
    	
 
    	
has the meaning   set out in Section 21 of EXHIBIT F.
    
	
 
    	
 
    	
 
    
	
“Second Closing”
    	
 
    	
has the meaning   set out in Section 3.3.
    
	
 
    	
 
    	
 
    
	
“Securities Act”
    	
 
    	
has the meaning   set out in Section 5(b) of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“Series A
   Shareholders”
    	
 
    	
means holders of   the Series A Shares, and a “Series A   Shareholder” means any of the Series A Shareholders.
    
	
 
    	
 
    	
 
    
	
“Series A Shares”
    	
 
    	
has the meaning   set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series A-1
   Shareholders”
    	
 
    	
means holders of   the Series A-1 Shares, and a “Series A-1   Shareholder” means any of the Series A-1 Shareholders.
    
	
 
    	
 
    	
 
    
	
“Series A-1 Shares”
    	
 
    	
has the meaning   set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series B
   Shareholders”
    	
 
    	
means holders of   the Series B Shares, and a “Series B   Shareholder” means any of the Series B Shareholders.
    
	
 
    	
 
    	
 
    
	
“Series B Shares”
    	
 
    	
has the meaning   set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Series B-1
   Shareholders”
    	
 
    	
means holders of   the Series B-1 Shares, and a “Series B-1   Shareholder” means any of the Series B-1 Shareholders.
    
	
 
    	
 
    	
 
    
	
“Series B-1 Shares”
    	
 
    	
has the meaning   set out in the Recitals.
    
	
 
    	
 
    	
 
    
	
“Shareholders
   Agreement”
    	
 
    	
has the meaning   set out in Section 14 of EXHIBIT F.
    
	
 
    	
 
    	
 
    
	
“Subscribed Shares”
    	
 
    	
has the meaning   set out in Section 2.3.
    
	
 
    	
 
    	
 
    
	
“Subscription Price”
    	
 
    	
has the meaning   set out in Section 2.2.
    
	
 
    	
 
    	
 
    
	
“Subsidiary”
    	
 
    	
means, with   respect to any given Person, any other Person that is not a natural person   and that is Controlled by such given Person.
    
	
 
    	
 
    	
 
    
	
“Termination Date”
    	
 
    	
has the meaning   set out in Section 9.1.
    
	
 
    	
 
    	
 
    
	
“Transaction
   Agreements”
    	
 
    	
has the meaning   set out in Section 4 of EXHIBIT D.
    
	
 
    	
 
    	
 
    
	
“US$”
    	
 
    	
means the lawful   currency of the United States of America.
    
	
 
    	
 
    	
 
    
	
“US GAAP”
    	
 
    	
means the   generally accepted accounting principles in the United States of America in   effect from time to time.
    
	
 
    	
 
    	
 
    
	
“Yao SPV”
    	
 
    	
means Nihao China   Corporation, a company limited by shares incorporated in the British Virgin   Islands.
    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(k)           references to statutory provisions shall be construed as references to those provisions as respectively amended or re-enacted (whether before or after the date of this Agreement) from time to time and shall include any provision of which they are re-enactments (whether with or without modification) and any subordinate legislation made under such statutory provisions; and

 

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

 

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

 

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2.             AGREEMENT TO PURCHASE AND ALLOT SHARES

 

2.1          Authorization. As of the First Closing, the Company will have authorized the issuance, pursuant to the terms and conditions of this Agreement, of 15,242,995 Series B-1 Shares having the rights, preferences, privileges and restrictions as set forth in the Restated Articles.

 

2.2          Agreement to Purchase and Sell. Subject to the terms and conditions hereof:

 

(a)           the Company hereby agrees to issue and allot to the Investor, and the Investor hereby agrees to purchase from the Company, on the date of the First Closing, 11,640,105 Series B-1 Shares, and

 

(b)           the Company hereby agrees to issue and allot to the Investor, and the Investor hereby agrees to purchase from the Company, on the date of the Second Closing, 3,602,890 Series B-1 Shares,

 

at a price equal to US$3.608 per Series B-1 Share, determined based on a pre-money valuation of the Company at US$445,000,000, amounting to an aggregate purchase price of US$55,000,000 (the “Subscription Price”).  The Subscription Price shall be paid by the Investor to the Company on the date of each Closing in the manner set forth in Section 3.

 

2.3          Conversion Shares.  The Series B-1 Shares to be subscribed pursuant to this Agreement will be collectively hereinafter referred to as the “Subscribed Shares” and the Ordinary Shares issuable upon conversion of the Subscribed Shares shall be collectively hereinafter referred to as the “Conversion Shares”.  Immediately after the Second Closing contemplated under this Agreement, the shareholding of the Ordinary Shareholders, Series A Shareholder, Series A-1 Shareholders, Series B Shareholders and the Investor (on a fully diluted and as converted basis) shall be as set forth in EXHIBIT B.

 

3.             CLOSINGS; DELIVERIES

 

3.1          First Closing. The purchase by the Investor of 11,640,105 Series B-1 Shares (the “First Closing”) shall take place remotely via the exchange of documents and signatures on the date that is five (5) Business Days after the satisfaction or waiver of all the conditions set forth in Section 6 hereto, or at such other time and date as may be mutually agreed upon by the Company and the Investor.

 

3.2          First Closing Deliveries.  At the First Closing:

 

(a)               The parties to the Transaction Agreements shall exchange duly executed signature pages to the Transaction Agreements remotely via facsimile, or by such other methods as mutually agreed by the parties thereto;

 

(b)               The Investor shall pay US$42,000,000 by wire transfer of immediately available funds to the Closing Account or by such other payment methods as may be mutually agreed upon by the Company and the Investor; and

 

10

 

(c)               The Company shall (i) deliver to the Investor, free and clear of any Encumbrance, a share certificate registered in its name or the name(s) of its nominee(s) as directed by the Investor, evidencing the number of Subscribed Shares subscribed by the Investor, (ii) enter the Investor in the register of members of the Company as a holder of the Subscribed Shares subscribed by it, free and clear of any Encumbrance, evidencing the Investor’s Subscribed Shares as having been issued and credited as fully paid, (iii) deliver to the Investor a certified true copy of the register of members of the Company reflecting the issuance of the Subscribed Shares subscribed by the Investor, and (iv) deliver to the Investor all other items required at the First Closing under Section 6.1.

 

3.3          Second Closing.  At the sole discretion by the Investor, the Investor shall have the right, but not obligation, to purchase 3,602,890 Series B-1 Shares from the Company (the “Second Closing”), unless otherwise agreed by the Investor and the Company in writing, at any time within two (2) months after the date of the First Closing pursuant to terms and conditions of this Agreement.  Once the Investor decides to proceed to the Second Closing, the Company shall be obliged to issue and allot all but not part of 3,602,890 Series B-1 Shares to the Investor at the Second Closing pursuant to this Agreement.   Unless otherwise agreed by the Investor and the Company in writing, if the Second Closing shall have not occurred within two (2) months after the date of the First Closing, the Investor shall have no further obligation to subscribe from the Company, and the Company shall have no further obligation to issue and allot to the Investor, any additional Series B-1 Shares pursuant to this Agreement.  The Parties hereto acknowledge and agree that the Investor shall not be liable for any Losses, liabilities, obligations, responsibilities or debts, of whatever nature, incurred from or arose out of or as a result of the failure to complete the Second Closing.

 

3.4          Second Closing Deliveries.  At the Second Closing:

 

(a)               The Investor shall pay US$13,000,000 by wire transfer of immediately available funds to the Closing Account or by such other payment methods as may be mutually agreed upon by the Company and the Investor; and

 

(b)               The Company shall (i) deliver to the Investor, free and clear of any Encumbrance, a share certificate registered in its name or the name(s) of its nominee(s) as directed by the Investor, evidencing the number of Subscribed Shares subscribed by the Investor, (ii) enter the Investor in the register of members of the Company as a holder of the Subscribed Shares subscribed by it, free and clear of any Encumbrance, evidencing the Investor’s Subscribed Shares as having been issued and credited as fully paid, and (iii) deliver to the Investor a certified true copy of the register of members of the Company reflecting the issuance of the Subscribed Shares subscribed by the Investor.

 

3.5          Closing.  For purposes of this Agreement, the term “Closing” shall mean any of the First Closing or the Second Closing.

 

4.             REPRESENTATIONS AND WARRANTIES

 

4.1          Representations and Warranties of Covenantors.  Unless otherwise provided in EXHIBIT D, the Covenantors, jointly and severally, hereby represent and warrant to the Investor, except as set forth in the Disclosure Schedule (the “Disclosure Schedule”) attached to this Agreement as EXHIBIT C (which Disclosure Schedule shall be deemed to modify the representations and warranties set forth in this Agreement), that the representations and warranties set forth in EXHIBIT D are true as of the date hereof and will be true as of the

 

11

 

date of each Closing (except for such representations and warranties that speak as of a particular date, in which case, such representations and warranties shall be true as of such date).

 

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

 

5.             COVENANTS

 

Unless otherwise provided in EXHIBIT F, each of the Covenantors jointly and severally covenants to the Investor as set forth in EXHIBIT F.

 

6.             CLOSING CONDITIONS

 

6.1          Conditions to Investor’s Obligations at First Closing.  The obligation of the Investor to purchase the relevant portion of the Subscribed Shares subscribed by it at the First Closing is subject to the fulfillment by the Covenantors on or prior to the First Closing, to the satisfaction of the Investor, or waiver by the Investor, of the conditions set forth in EXHIBIT G.

 

6.2          Conditions to Company’s Obligations at First Closing.  The obligation of the Company at the First Closing is subject to the fulfillment by the Investor, or waiver by the Company, of the conditions set forth in EXHIBIT H.

 

7.             INDEMNIFICATION

 

7.1          Indemnification.  The Covenantors shall, jointly and severally, indemnify, defend and hold harmless the Investor and its respective Affiliates, together with the employees, officers, directors, managing directors and partners of the foregoing, from and against any and all Losses, directly or indirectly, arising out of, relating to, connected with or incidental to any breach of any representation, warranty, covenant or agreement made by any of the Covenantors in this Agreement or in any Transaction Agreements (the “Indemnifiable Losses”).  The Investor shall not be liable for any Losses, liabilities, obligations, responsibilities or debts, whether contractual or otherwise, or any taxes or any other undertakings of any of the Group Companies incurred from or arose out of or as a result of events which happened before the First Closing.

 

7.2          Payment. At the absolute discretion of the Investor, all Indemnifiable Losses suffered by the Investor may be settled by (a) payment of cash in an amount equal to the Indemnifiable Losses, or (b) the transfer of such number of Ordinary Shares or Preference Shares (at the sole discretion of the Investor) equal to (i) the amount of Indemnifiable Losses suffered by the Investor divided by (ii) the fair market value of one Ordinary Share or Preference Share (as the case may be) as determined in good faith by the Board (with the consent of the Investor Director), or (c) the Company’s allotment and issuance of such number of Ordinary Shares or Preference Shares (at the sole discretion of the Investor) equal to (i) the amount of Indemnifiable Losses suffered by the Investor divided by (ii) the fair market value of one Ordinary Share or Preference Share (as the case may be) as determined in good faith by the Board (with the consent of the Investor Director), provided, that any such

 

12

 

allotment and issuance shall be grossed up and shall not have any dilutive effect on the Investor, or a combination of the above.

 

7.3          Limitation.  Notwithstanding any other provision to the contrary contained herein, the maximum liability of the Covenantors to the Investor under the Transaction Agreements shall not exceed US$55,000,000 in aggregate.

 

7.4          Survival.  The agreements in this Section 7 shall survive the execution and delivery or any termination of this Agreement.

 

7.5          Survival of Representations and Warranties. All actions for breach of, or indemnifications with respect to, any of the representations and warranties contained in this Agreement must be asserted within two (2) years after the date of the First Closing or, if there is the Second Closing, within two (2) years after the date of the Second Closing.

 

8.             CONFIDENTIALITY AND NON-DISCLOSURE

 

8.1          Confidentiality.  From the date hereof, each Party shall, and shall cause any Person who is Controlled by such Party to, keep confidential the terms, conditions, and existence of this Agreement and the Transaction Agreements and any related documentation, the identities of any of the Parties, and other information of a non-public nature received from any other Party or prepared by such Party exclusively in connection herewith or therewith (collectively, the “Confidential Information”) except as the Company and the Investor shall mutually agree otherwise; provided, that any Party hereto may disclose Confidential Information or permit the disclosure of Confidential Information (a) to the extent required by Applicable Law or the rules of any stock exchange; provided that such Party shall, where practicable and to the extent permitted by Applicable Law, provide the other Parties with prompt written notice of that fact and use all reasonable endeavors to seek (with the cooperation and reasonable endeavors of the other Parties) a protective order, confidential treatment or other appropriate remedy; and in such event, such Party shall furnish only that portion of the information which is legally required to be disclosed and shall exercise reasonable endeavors to keep such information confidential to the extent reasonably requested by any such other Parties, (b) to its officers, directors, employees, and professional advisors on a need-to-know basis for the performance of its obligations in connection herewith so long as such Party advises each Person to whom any Confidential Information is so disclosed as to the confidential nature thereof, (c) in the case of the Investor, its fund manager, other funds managed by its fund manager and their respective auditors, counsel, directors, officers, employees, shareholders, partners or investors for the purposes of fund reporting or inter-fund reporting so long as the Investor advises each Person to whom any Confidential Information is so disclosed as to the confidential nature thereof, and (d) to its current or bona fide prospective investors, investment bankers and any Person otherwise providing substantial debt or equity financing to such Party so long as the Party advises each Person to whom any Confidential Information is so disclosed as to the confidential nature thereof.  For the avoidance of doubt, Confidential Information does not include information that (i) was already in the possession of the receiving Party before such disclosure by the disclosing Party, (ii) is or becomes available to the public other than as a result of disclosure by the receiving Party in violation of this Section 8, or (iii) is or becomes available to the receiving Party from a third party not known by the receiving Party to be in breach of any legal or contractual obligation not to disclose such information to it.

 

13

 

8.2          Press Releases. The Parties shall not make any announcement regarding the consummation of the transaction contemplated by this Agreement, other Transaction Agreements and any related documentation in a press release, conference, advertisement, announcement, professional or trade publication, marketing materials or otherwise to the general public without the Company’s and the Investor’s prior written consent.

 

9.             TERMINATION

 

9.1          Termination of Agreement.  Subject to other provisions herein, this Agreement and the transactions contemplated by this Agreement shall terminate (a) at the election of the Company or the Investor on or after three (3) months after the date hereof (such elected date hereinafter referred to as the “Termination Date”), if the First Closing shall not have occurred on or before such date, provided that (i) the terminating Party is not in material default of any of its obligations hereunder, and (ii) the right to terminate this Agreement pursuant to this Section 9.1 shall not be available to any Party whose breach of any provision of this Agreement has been the cause of, or resulted, directly or indirectly, in, the failure of the First Closing to be consummated by such date; or (b) upon the mutual consent in writing of the Company and the Investor.

 

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

 

9.3          Survival.  Notwithstanding any provision to the contrary, the provisions of Section 7 (Indemnification), Section 8 (Confidentiality and Non-Disclosure), this Section 9 (Termination), Section 10.2 (Expenses), Section 10.3 (Governing Law) and Section 10.4 (Dispute Resolution) shall survive any expiration or termination of this Agreement.

 

10.          MISCELLANEOUS

 

10.1        Binding Effect; Assignment.  This Agreement shall be binding on and shall enure for the benefit of the successors, heirs, executors and administrators and permitted transferees and assignees of the Parties hereto but shall not be capable of being assigned by any Covenantor nor Yao SPV without the prior consent in writing of the Investor.  This Agreement and the rights and obligations herein may be assigned and transferred by the Investor to any Person without the written consent of the other Parties hereto.

 

10.2        Expenses.

 

(a)           The Company shall pay the Investor (or its transferees or assignees) for all costs and expenses incurred by the Investor (or its transferees or assignees) in connection with negotiation and preparation of this Agreement and any Transaction Agreements, the performance of and compliance with all agreements and conditions contained herein or therein, including the fees, expenses, taxes, duties and disbursements of any counsel and/or accountants that may be retained.

 

(b)           If the transactions contemplated by this Agreement and any other Transaction Agreements do not result in the First Closing, the Company will bear fifty

 

14

 

percent (50%) and the Investor (or its transferees or assignees) will bear fifty percent (50%) of such costs and expenses incurred by the Investor (or its transferees or assignees) since July 1, 2011.  The Parties agree that such aggregate costs and expenses to be reimbursed by the Company hereunder shall be limited to a maximum amount of US$300,000.

 

10.3        Governing Law.  This Agreement shall be governed by and construed in all respects in accordance with the laws of Hong Kong.

 

10.4        Dispute Resolution.

 

(a)           Any dispute, controversy or claim (each, a “Dispute”) arising out of or relating to this Agreement or the interpretation, breach, termination or validity hereof, shall be resolved at the first instance through consultation between the Parties to such Dispute.  Such consultation shall begin immediately after any Party has delivered written notice to any Party to the Dispute requesting such consultation.

 

(b)           If the Dispute is not resolved within fifteen (15) days following the date on which such notice is given, the Dispute shall be submitted to arbitration upon the request of any Party to the Dispute with notice to each other Party to the Dispute (the “Arbitration Notice”).

 

(c)           The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the “Centre”).  There shall be three (3) arbitrators.  The Investor shall choose one (1) arbitrator, the Covenantors shall collectively choose one (1) arbitrator and the two (2) arbitrators shall jointly select the third arbitrator who shall serve as the chairman of the arbitral tribunal.  If any of the members of the arbitral tribunal have not been appointed within thirty (30) days after the Arbitration Notice is given, the relevant appointment shall be made by the Secretary General of the Centre.

 

(d)           The arbitration proceedings shall be conducted in English.  The arbitral tribunal shall apply the Arbitration Rules of the United Nations Commission on International Trade Law, as administered by the Centre at the time of the arbitration.  However, if such rules are in conflict with the provisions of this Section 10.4, including the provisions concerning the appointment of arbitrators, the provisions of this Section 10.4 shall prevail.

 

(e)           The arbitrators shall decide any Dispute submitted by the Parties strictly in accordance with the substantive law of Hong Kong; provided that when the published laws of Hong Kong do not cover a certain matter, international legal principles and practices shall apply.

 

(f)            Each Party to the arbitration shall cooperate with the other Parties to the arbitration in making full disclosure of and providing complete access to all information and documents requested by such other Party in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on such Party.

 

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

 

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

 

15

 

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

 

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

 

(k)           During the course of the arbitral tribunal’s adjudication of the Dispute, this Agreement shall continue to be performed except with respect to the part in dispute and under adjudication.

 

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

 

10.6        Notices.  Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to the other Party, upon delivery; (b) when sent by facsimile at the number set forth on EXHIBIT L hereto, upon receipt of confirmation of error-free transmission; (c) when sent by electronic mail at the address set forth on EXHIBIT L hereto, on the same day that it was sent and it shall not be necessary for the receipt of the electronic mail to be acknowledged by the recipient; (d) three (3) Business Days after deposit in the mail as air mail or certified mail, postage prepaid and addressed to the other Parties as set forth on EXHIBIT L hereto; or (e) one (1) Business Day after deposit with an overnight delivery service, postage prepaid, addressed to the other Parties as set forth on EXHIBIT L hereto with next Business Day delivery guaranteed.  A Party may change or supplement the facsimile number, electronic mail address or mailing address given in EXHIBIT L, or designate an additional facsimile number, electronic mail address or mailing address, for purposes of this Section 10.6 by giving the other Parties written notice of the new facsimile number, electronic mail address or mailing address in the manner set forth above.

 

10.7        Amendments and Waivers.

 

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

 

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

 

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

 

16

 

(d)           No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

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

 

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

 

10.10      Adjustments for Share Splits, Etc.  Wherever in this Agreement there is a reference to a specific number of Series B-1 Shares, Series B Shares, Series A-1 Shares, Series A Shares or Ordinary Shares of the Company, then, upon the occurrence of any subdivision, combination or share dividend of the Series B-1 Shares, Series B Shares, Series A-1 Shares, Series A Shares or Ordinary Shares, the specific number of shares so referenced in this Agreement shall automatically be proportionally adjusted to reflect the effect on the outstanding shares of such class or series of shares by such subdivision, combination or share dividend.

 

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

 

10.12      Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

 

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[SIGNATURE PAGE TO FOLLOW]

 

18

 

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

 

	
FOUNDER:
    	
 
    
	
 
    	
 
    
	
EXECUTED   AS A DEED
    	
)
    
	
 
    	
)
    
	
SIGNED, SEALED and DELIVERED
    	
)
    
	
 
    	
)
    
	
by JINBO YAO (姚劲波)
    	
)  /s/ Jinbo Yao
    	
L.S.
    
	
 
    	
)
    
	
the holder of the   People’s Republic of China
    	
)
    
	
 
    	
)
    
	
in the presence   of:
    	
)
    
	
 
    	
)
    
	
Name of Witness:
    	
)
    
	
Address of   Witness:
    	
)
    

 

[SIGNATURE PAGE TO SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT]

 

 

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

 

 

	
FOUNDER:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED   AS A DEED
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
SIGNED, SEALED and DELIVERED
    	
)
    	
 
    
	
 
    	
)
    	
L.S.
    
	
by JIANBO SU (苏剑波)
    	
)
    	
/s/ Jianbo Su
    	
 
    
	
 
    	
)
    	
 
    
	
the holder of the   People’s Republic of China
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
in the presence   of:
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
Name of Witness:
    	
)
    	
 
    
	
Address of   Witness:
    	
)
    	
 
    

 

[SIGNATURE PAGE TO SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT]

 

 

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

 

 

	
FOUNDER:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED   AS A DEED
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
SIGNED, SEALED and DELIVERED
    	
)
    	
 
    
	
 
    	
)
    	
L.S.
    
	
by BAOSHAN WANG (王宝珊)
    	
)
    	
/s/ Baoshan Wang
    	
 
    
	
 
    	
)
    	
 
    
	
the holder of the   People’s Republic of China
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
in the presence   of:
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
Name of Witness:
    	
)
    	
 
    
	
Address of   Witness:
    	
)
    	
 
    

 

[SIGNATURE PAGE TO SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT]

 

 

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

 

 

	
FOUNDER:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED   AS A DEED
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
SEALED with the COMMON   SEAL
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
of NIHAO CHINA CORPORATION
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
and SIGNED by JINBO YAO
    	
)
    	
/s/ Jinbo Yao
    
	
 
    	
)
    	
 
    
	
(Director)
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
in the presence   of:-
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
Name of witness:
    	
)
    	
 
    
	
Address of   witness:
    	
)
    	
 
    

 

[SIGNATURE PAGE TO SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT]

 

 

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

 

 

	
COMPANY:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED   AS A DEED
    	
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SEALED with the COMMON   SEAL
    	
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)
    	
 
    
	
of 58.COM INC.
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
and SIGNED by JINBO YAO
    	
)
    	
/s/ Jinbo Yao
    
	
 
    	
)
    	
 
    
	
(Director)
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
in the presence   of:-
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
Name of witness:
    	
)
    	
 
    
	
Address of   witness:
    	
)
    	
 
    

 

[SIGNATURE PAGE TO SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT]

 

 

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

 

 

	
BVI   SUBSIDIARY:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED   AS A DEED
    	
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SEALED with the COMMON   SEAL
    	
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)
    	
 
    
	
of CHINA CLASSIFIED NETWORK
    	
)
    	
 
    
	
CORPORATION
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
and SIGNED by JINBO YAO
    	
)
    	
/s/ Jinbo Yao
    
	
 
    	
)
    	
 
    
	
(Director)
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
in the presence   of:-
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
Name of witness:
    	
)
    	
 
    
	
Address of   witness:
    	
)
    	
 
    

 

[SIGNATURE PAGE TO SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT]

 

 

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

 

 

	
HK   SUBSIDIARY:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED   AS A DEED
    	
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)
    	
 
    
	
SEALED with the COMMON   SEAL
    	
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)
    	
 
    
	
of CHINA CLASSIFIED INFORMATION
    	
)
    	
 
    
	
CORPORATION LIMITED
    	
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(中国分类信息集团有限公司)
    	
)
    	
 
    
	
 
    	
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and SIGNED by JINBO YAO
    	
)
    	
/s/ Jinbo Yao
    
	
 
    	
)
    	
 
    
	
(Director)
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
in the presence   of:-
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
Name of witness:
    	
)
    	
 
    
	
Address of   witness:
    	
)
    	
 
    

 

[SIGNATURE PAGE TO SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT]

 

 

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

 

 

	
PRC SUBSIDIARY:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED
    	
 
    	
 
    
	
 
    	
)
    	
 
    
	
SIGNED SEALED and DELIVERED
    	
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by JINBO YAO
    	
)
    	
/s/ Jinbo Yao
    	
 
    	
L.S.
    
	
 
    	
)
    	
 
    
	
the lawful   attorney of
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
BEIJING   CHENGSHI WANGLIN
    	
)
    	
 
    
	
INFORMATION   TECHNOLOGY CO., LTD.
    	
)
    	
 
    
	
(北京城市网邻信息技术有限公司))
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
in the presence   of:-
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
Name of witness:
    	
)
    	
 
    
	
Address of   witness:
    	
)
    	
 
    

 

[SIGNATURE PAGE TO SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT]

 

 

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

 

 

	
DOMESTIC ENTERPRISE:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED   AS A DEED
    	
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SIGNED SEALED and DELIVERED
    	
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by JINBO YAO
    	
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/s/ Jinbo Yao
    	
 
    	
L.S.
    
	
 
    	
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the lawful   attorney of
    	
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BEIJING 58 INFORMATION
    	
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TECHNOLOGY CO., LTD.
    	
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(北京五八信息技术有限公司)
    	
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in the presence   of:-
    	
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Name of witness:
    	
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Address of   witness:
    	
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[SIGNATURE PAGE TO SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT]

 

 

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

 

	
INVESTOR:
    
	
 
    
	
WP X ASIA ONLINE INVESTMENT HOLDINGS LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Timothy J.   Curt
    	
 
    
	
Name:
    	
Timothy J. Curt
    	
 
    
	
Title:
    	
Director
    	
 
    

 

[SIGNATURE PAGE TO SERIES B-1 PREFERENCE SHARE SUBSCRIPTION AGREEMENT]Exhibit 10.5

 

Amended and Restated Equity Interest Pledge Agreement

 

This Amended and Restated Equity Interest Pledge Agreement (this “Agreement”) has been executed by and among the following parties on June 28, 2013 in Beijing, the People’s Republic of China (“China” or the “PRC”):

 

Party A:                  Beijing Chengshi Wanglin Information Technology Co., Ltd. (hereinafter “Pledgee”), a wholly foreign owned enterprise, organized and existing under the laws of the PRC, with its address at No.6 Building, Yi 108, Beiyuan Road, Chaoyang District, Beijing, PRC;

 

Party B:                  Jinbo Yao (hereinafter “Pledgor”), a Chinese citizen with Chinese Identification No.:           ; and

 

Party C:                  Beijing 58 Information Technology Co., Ltd., a limited liability company organized and existing under the laws of the PRC, with its address at No.2 Building, Yi 108, Beiyuan Road, Chaoyang District, Beijing, PRC.

 

In this Agreement, each of Pledgee, Pledgor and Party C shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas:

 

1.                   Pledgor is a citizen of China who as of the date hereof holds 37.8% of equity interests of Party C, representing RMB3,780,000 in the registered capital of Party C.  Party C is a limited liability company registered in Beijing, China, engaging in Internet information services and advertising services. Party C acknowledges the respective rights and obligations of Pledgor and Pledgee under this Agreement, and intends to provide any necessary assistance in registering the Pledge;

 

2.                   Pledgee is a wholly foreign-owned enterprise registered in China. Pledgee and Party C partially owned by Pledgor have executed an Exclusive Business Cooperation Agreement (as defined below) in Beijing; Party C, Pledgee and Pledgor have executed an Exclusive Option Agreement (as defined below); Pledgee and Pledgor have executed a Loan Agreement (as defined below); and Pledgor has executed a Power of Attorney to Pledgee.

 

3.                   To ensure that Party C and Pledgor fully perform their obligations under the Exclusive Business Cooperation Agreement, the Exclusive Option Agreement, the Loan Agreement and the Power of Attorney, Pledgor hereby pledges to the Pledgee all of the equity interest he holds in Party C as security for Party C’s and Pledgor’s obligations under the Exclusive Business Cooperation Agreements, the Exclusive Option Agreement, the Loan Agreement and the Power of Attorney.

 

4.                   Pledgee, Pledgor and Party C entered into an equity interest pledge agreement (the “Old Agreement”) on October 10, 2011. Party A, Party B and Party C intend to enter this Agreement to replace and supersede the Old Agreement and all

 

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documents executed by the Parties in connection with the Old Agreement.

 

5.                   The Parties agree to amend certain provisions of the Old Agreement by executing this Agreement, which shall supersede and replace the Old Agreement upon the execution.

 

To perform the provisions of the Transaction Documents, the Parties have mutually agreed to execute this Agreement upon the following terms.

 

1.                   Definitions

 

Unless otherwise provided herein, the terms below shall have the following meanings:

 

1.1            Pledge: shall refer to the security interest granted by Pledgor to Pledgee pursuant to Article 2 of this Agreement, i.e., the right of Pledgee to be compensated on a preferential basis with the conversion, auction or sales price of the Equity Interest.

 

1.2            Equity Interest: shall refer to all of the equity interest now held and hereafter acquired by Pledgor in Party C.

 

1.3            Term of Pledge: shall refer to the term set forth in Section 3.2 of this Agreement.

 

1.4            Transaction Documents: shall refer to the Amended and Restated Exclusive Business Cooperation Agreement executed by and between Party C and Pledgee on October 10, 2011 (the “Exclusive Business Cooperation”), the Amended and Restated Exclusive Option Agreement executed by and among Party C, Pledgee and Pledgor on June 28, 2013 (the “Exclusive Option Agreement”), the Loan Agreement executed by and between Pledgee and Pledgor on June 28, 2013 (the “Loan Agreement”), Power of Attorney executed on June 28, 2013 by Pledgor (the “Power of Attorney”) and any modification, amendment and restatement to the aforementioned documents.

 

1.5            Contract Obligation: shall refer to all the obligations of Pledgor under the Exclusive Option Agreement, the Power of Attorney, the Loan Agreement and this Agreement; all the obligations of Party C under the Exclusive Cooperation Agreement, the Exclusive Option Agreement and this Agreement.

 

1.6            Secured Indebtedness: shall refer to all the direct, indirect or derivative losses of Pledgee, including loss of expected profits, incurred as a result of any Event of Default (as defined below). The amount of such loss shall be based on, including but not limited to the reasonable business plan and profit forecast of Pledgee, the consulting and service fees payable to Pledgee under the Exclusive Business Cooperation Agreement and all expenses occurred in connection with enforcement by Pledgee of Pledgor’s and/or Party C’s Contract Obligation.

 

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1.7            Event of Default: shall refer to any of the circumstances set forth in Article 7 of this Agreement.

 

1.8            Notice of Default: shall refer to the notice issued by Pledgee in accordance with this Agreement declaring an Event of Default.

 

2.                   The Pledge

 

2.1            Pledgor agrees to pledge all the Equity Interest as security for performance of the Contract Obligation and payment of the Secured Indebtedness under this Agreement. Party C hereby assents that Pledgor pledges the Equity Interest to the Pledgee pursuant to this Agreement.

 

2.2            During the term of the Pledge, Pledgee is entitled to receive dividends distributed on the Equity Interest. Pledgor may receive dividends distributed on the Equity Interest only with prior written consent from Pledgee. Dividends received by Pledgor on Equity Interest shall be, subject to requirement of Pledgee, (1) deposited into an account designated and supervised by Pledgee and used to secure the Contract Obligations and pay the Secured Indebtedness prior and in preference to make any other payment; or (2) unconditionally give to Pledgee or any other person designated by Pledgee to the extent permitted under applicable PRC laws.

 

2.3            Pledgor may subscribe for capital increase in Party C only with prior written consent of Pledgee. Any equity interest obtained by the Pledgor in future capital increase shall be deemed as Equity Interest as well.

 

2.4            In the event that Party C is required by PRC law to be liquidated or dissolved, any interest distributed to Pledgor upon Party C’s dissolution or liquidation shall be (1) deposited into an account designate and supervised by Pledgee and used to secure the Contract Obligations and pay the Secured Indebtedness prior and in preference to make any other payment; or (2) unconditionally give to Pledgee or any other person designated by Pledgee to the extent permitted under applicable PRC laws.

 

3.                   Term of Pledge

 

3.1            The Pledge shall become effective on such date when the pledge of the Equity Interest contemplated herein has been registered with relevant administration for industry and commerce (the “AIC”). The Pledge shall be continuously valid until all Contract Obligations and Secured Indebtedness have been fully performed and paid. Pledgor and Party C shall (1) deregister the pledge under the Old Agreement, and register the Pledge in the shareholders’ register of Party C within 3 business days following the execution of this Agreement, and (2) submit an application to the AIC for deregistration of the pledge under the Old Agreement and the registration of the Pledge of the Equity Interest contemplated herein within 30 business days following the execution of this Agreement. The parties covenant that for the purpose of registration of the Pledge, the parties hereto and all other

 

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shareholders of Party C shall submit to the AIC this Agreement or an equity interest pledge contract in the form required by the AIC at the location of Party C which shall truly reflect the information of the Pledge hereunder (the “AIC Pledge Contract”).  For matters not specified in the AIC Pledge Contract, the parties shall be bound by the provisions of this Agreement. Pledgor and Party C shall submit all necessary documents and complete all necessary procedures, as required by the PRC laws and regulations and the relevant AIC, to ensure that the Pledge of the Equity Interest shall be registered with the AIC as soon as possible after filing.

 

3.2            During the Term of Pledge, in the event Pledgor and/or Party C fails to perform the Contract Obligation or pay Secured Indebtedness, Pledgee shall have the right, but not the obligation, to exercise the Pledge in accordance with the provisions of this Agreement.

 

4.                   Custody of Records for Equity Interest subject to Pledge

 

4.1            During the Term of Pledge set forth in this Agreement, Pledgor shall deliver to Pledgee’s custody the capital contribution certificate for the Equity Interest and the shareholders’ register containing the Pledge within one week from the execution of this Agreement. Pledgee shall have custody of such documents during the entire Term of Pledge set forth in this Agreement.

 

5.                   Representations and Warranties of Pledgor and Party C

 

As of the execution date of this Agreement, Pledgor and Party C hereby jointly and severally represent and warrant to Pledgee that:

 

5.1            Pledgor is the sole legal and beneficial owner of the Equity Interest.

 

5.2            Pledgee shall have the right to dispose of and transfer the Equity Interest in accordance with the provisions set forth in this Agreement.

 

5.3            Except for the Pledge, Pledgor has not placed any security interest or other encumbrance on the Equity Interest.

 

5.4            Pledgor and Party C have obtained any and all approvals and consents from applicable government authorities and third parties (if required) for execution, delivery and performance of this Agreement.

 

5.5            The execution, delivery and performance of this Agreement will not: (i) violate any relevant PRC laws; (ii) conflict with Party C’s articles of association or other constitutional documents; (iii) result in any breach of or constitute any default under any contract or instrument to which it is a party or by which it is otherwise bound; (iv) result in any violation of any condition for the grant and/or maintenance of any permit or approval granted to any Party; or (v) cause any permit or approval granted to any Party to be suspended, cancelled or attached with additional conditions.

 

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6.                   Covenants of Pledgor and Party C

 

6.1            Pledgor and Party C hereby jointly and severally covenant to the Pledgee:

 

6.1.1                     Pledgor shall not transfer the Equity Interest, place or permit the existence of any security interest or other encumbrance on the Equity Interest or any portion thereof, without the prior written consent of Pledgee, except for the performance of the Transaction Documents;

 

6.1.2                     Pledgor and Party C shall comply with the provisions of all laws and regulations applicable to the pledge of rights, and within 5 days of receipt of any notice, order or recommendation issued or prepared by relevant competent authorities regarding the Pledge, shall present the aforementioned notice, order or recommendation to Pledgee, and shall comply with the aforementioned notice, order or recommendation or submit objections and representations with respect to the aforementioned matters upon Pledgee’s reasonable request or upon consent of Pledgee;

 

6.1.3                     Pledgor and Party C shall promptly notify Pledgee of any event or notice received by Pledgor that may have an impact on Pledgee’s rights to the Equity Interest or any portion thereof, as well as any event or notice received by Pledgor that may have an impact on any guarantees and other obligations of Pledgor arising out of this Agreement.

 

6.1.4                     Party C shall complete the registration procedures for extension of the term of operation within three (3) months prior to the expiration of such term to maintain the validity of this Agreement.

 

6.2            Pledgor agrees that the rights acquired by Pledgee in accordance with this Agreement with respect to the Pledge shall not be interrupted or harmed by Pledgor or any heirs or representatives of Pledgor or any other persons through any legal proceedings.

 

6.3            To protect or perfect the security interest granted by this Agreement for the Contract Obligation and Secured Indebtedness, Pledgor hereby undertakes to execute in good faith and to cause other parties who have an interest in the Pledge to execute all certificates, agreements, deeds and/or covenants required by Pledgee.  Pledgor also undertakes to perform and to cause other parties who have an interest in the Pledge to perform actions required by Pledgee, to facilitate the exercise by Pledgee of its rights and authority granted thereto by this Agreement, and to enter into all relevant documents regarding ownership of Equity Interest with Pledgee or designee(s) of Pledgee (natural persons/legal persons).  Pledgor undertakes to provide Pledgee within a reasonable time with all notices, orders and decisions regarding the Pledge that are required by Pledgee.

 

6.4            Pledgor hereby undertakes to comply with and perform all guarantees,

 

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promises, agreements, representations and conditions under this Agreement. In the event of failure or partial performance of its guarantees, promises, agreements, representations and conditions, Pledgor shall indemnify Pledgee for all losses resulting therefrom.

 

7.                   Event of Breach

 

7.1            The following circumstances shall be deemed Event of Default:

 

7.1.1                     Pledgor’s any breach to any obligations under the Transaction Documents and/or this Agreement.

 

7.1.2                     Party C’s any breach to any obligations under the Transaction Documents and/or this Agreement.

 

7.2            Upon notice or discovery of the occurrence of any circumstances or event that may lead to the aforementioned circumstances described in Section 7.1, Pledgor and Party C shall immediately notify Pledgee in writing accordingly.

 

7.3            Unless an Event of Default set forth in this Section 7.1 has been successfully resolved to Pledgee’s satisfaction within twenty (20) days after the Pledgee and /or Party C delivers a notice to the Pledgor requesting ratification of such Event of Default, Pledgee may issue a Notice of Default to Pledgor in writing at any time thereafter, demanding the Pledgor to immediately exercise the Pledge in accordance with the provisions of Article 8 of this Agreement.

 

8.                   Exercise of Pledge

 

8.1            Pledgee may issue a Notice of Default to Pledgor when exercising the Pledge.

 

8.2            Subject to the provisions of Section 7.3, Pledgee may exercise the right to enforce the Pledge at any time after the issuance of the Notice of Default in accordance with Section 8.1. Once Pledgee elects to enforce the Pledge, Pledgor shall cease to be entitled to any rights or interests associated with the Equity Interest.

 

8.3            After Pledgee issues a Notice of Default Pledgee in accordance with Section 8.1, Pledgee may exercise any remedy measure under applicable PRC laws, the Transaction Documents and this Agreement, including but not limited to be compensated in priority by the conversion of the Equity Pledge or from the proceeds from auction or sale of the Equity Interest.  The Pledgee shall have no liability for any loss incurred by its duly exercise of such rights and powers.

 

8.4            The proceeds from exercise of the Pledge by Pledgee shall be used to pay for tax and expenses incurred by disposing the Equity Interest and perform Contract Obligations and pay the Secured Indebtedness prior and in

 

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preference to any other payment.  After the payment of the aforementioned amounts, the remaining balance shall be returned to Pledgor or any other person who have rights to such balance under applicable laws or be deposited to the local notary public office where Pledgor resides, with all expense incurred being borne by Pledgor.  To the extent permitted under applicable PRC laws, Pledgor shall unconditionally give the aforementioned proceeds to Pledgee or any other person designated by Pledgee.

 

8.5            Pledgee has the right to exercise any remedy measure available simultaneously or in any order.  Pledgee may exercise the right to be compensated from in priority by the conversion of the Equity Pledge or from the proceeds from auction or sale of the Equity Interest under this Agreement, without exercising any other remedy measure first.

 

8.6            Pledgee is entitled to designate an attorney or other representatives to exercise the Pledge on its behalf and Pledgor and Party C shall not raise any objection to such exercise.

 

8.7            When Pledgee disposes of the Pledge in accordance with this Agreement, Pledgor and Party C shall provide necessary assistance to enable Pledgee to enforce the Pledge in accordance with this Agreement.

 

9.                   Breach of Agreement

 

9.1            If Pledgor or Party C conducts any material breach of any term of this Agreement, Pledgee shall have right to terminate this Agreement and require Pledgor or Party C to compensate all damages; this Section 9 shall not prejudice any other rights of Pledgee herein;

 

9.2            If Pledgee conducts any breach of any term of this Agreement, Pledgor or Party C shall not terminate this Agreement in any event unless otherwise required by applicable laws.

 

10.            Assignment

 

10.1     Without Pledgee’s prior written consent, Pledgor shall not have the right to assign or delegate its rights and obligations under this Agreement.

 

10.2     This Agreement shall be binding on Pledgor and its successors and permitted assigns, and shall be valid with respect to Pledgee and each of its successors and assigns.

 

10.3     At any time, Pledgee may assign any and all of its rights and obligations under the Transaction Documents to its designee(s), in which case the assigns shall have the rights and obligations of Pledgee under this Agreement, as if it were the original party to this Agreement. When the Pledgee assigns the rights and obligations under the Business Cooperation Agreement, upon Pledgee’s request, Pledgor and/or Party C shall execute relevant agreements or other documents relating to such assignment.

 

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10.4     In the event of a change in Pledgee due to an assignment, Pledgor and/or Party C shall, at the request of Pledgee, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement, and register the same with the relevant AIC.

 

10.5     Pledgor and Party C shall strictly abide by the provisions of this Agreement and other contracts jointly or separately executed by the Parties hereto or any of them, including the Transaction Documents, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability thereof. Any remaining rights of Pledgor with respect to the Equity Interest pledged hereunder shall not be exercised by Pledgor except in accordance with the written instructions of Pledgee.

 

11.            Termination

 

11.1     Upon the fulfillment of all Contract Obligation and the full payment of all Secured Indebtedness by Pledgor and Party C, Pledgee shall release the Pledge under this Agreement upon Pledgor’s request as soon as reasonably practicable and shall assist Pledgor to de-register the Pledge from the shareholders’ register of Party C and with relevant PRC local administration for industry and commerce.

 

11.2     The provisions under Sections 9, 13, 14 and 11.2 herein of this Agreement shall survive the expiration or termination of this Agreement.

 

12.            Handling Fees and Other Expenses

 

All fees and out of pocket expenses relating to this Agreement, including but not limited to legal costs, costs of production, stamp tax and any other taxes and fees, shall be borne by Party C.

 

13.            Confidentiality

 

The Parties acknowledge that the existence and the terms of this Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance this Agreement are regarded as confidential information. Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders, investors, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, investors, legal counsels or financial advisors shall  be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the staff members or agencies

 

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hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Agreement. This Section shall survive the termination of this Agreement for any reason.

 

14.            Governing Law and Resolution of Disputes

 

14.1     The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the laws of China.

 

14.2     In the event of any dispute with respect to the construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement on the dispute within 30 days after either Party’s request to the other Parties for resolution of the dispute through negotiations, either Party may submit the relevant dispute to the China International Economic and Trade Arbitration Commission for arbitration, in accordance with its Arbitration Rules. The arbitration shall be conducted in Beijing, and the language used in arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties.

 

14.3     Upon the occurrence of any disputes arising from the construction and performance of this Agreement or during the pending arbitration of any dispute, except for the matters under dispute, the Parties to this Agreement shall continue to exercise their respective rights under this Agreement and perform their respective obligations under this Agreement.

 

15.            Notices

 

15.1     All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such party set forth below. A confirmation copy of each notice shall also be sent by E-mail. The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

15.2     Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively given on the date of delivery or refusal at the address specified for notices.

 

15.3     Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of transmission).

 

15.4     For the purpose of notices, the addresses of the Parties are as follows:

 

	
Party   A:
    	
Beijing   Chengshi Wanglin Information Technology Co., Ltd.
    
	
Address:
    	
No.6 Building, Yi 108, Beiyuan Road, Chaoyang District, 
    

 

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Beijing
    
	
Attn:
    	
Jinbo Yao
    
	
Phone:
    	
+8610 64435588-8888
    
	
Facsimile:
    	
+8610-64459926
    
	
 
    	
 
    
	
Party B:  
    	
Jinbo Yao
    
	
Address:
    	
D701, Rome Garden, Hui Xin West Street, Chaoyang District,

Beijing
    
	
Phone:
    	
+8610 64435588-8888
    
	
Facsimile:
    	
+8610-64459926
    
	
 
    	
 
    
	
Party C: 
    	
Beijing 58 Information Technology Co., Ltd.
    
	
Address:
    	
No.2 Building, Yi 108, Beiyuan Road, Chaoyang District,

Beijing
    
	
Attn:
    	
Jinbo Yao
    
	
Phone:
    	
+8610 64435588-8888
    
	
Facsimile:
    	
+8610-64459926
    

 

15.5     Any Party may at any time change its address for notices by a notice delivered to the other Parties in accordance with the terms hereof.

 

16.            Severability

 

In the event that one or several of the provisions of this Contract are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Contract shall not be affected or compromised in any respect. The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

17.            Attachments

 

The attachments set forth herein shall be an integral part of this Agreement.

 

18.            Effectiveness

 

18.1     This Agreement shall become effective upon execution by the Parties and shall replace and supersede the Old Agreement and all documents executed by the Parties in connection with the Old Agreement in its entirety from the date it becomes effective.

 

18.2     Any amendments, changes and supplements to this Agreement shall be in writing and shall become effective upon completion of the governmental filing procedures (if applicable) after the affixation of the signatures or seals of the Parties.

 

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19.            Language and Counterparts

 

This Agreement is written in Chinese and English in four copies. Pledgor, Pledgee and Party C shall hold one copy respectively and the other copy shall be used for registration.  Each copy of this Agreement shall have equal validity.  In case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.

 

[The Remainder of this page is intentionally left blank]

 

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IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Amended and Restated Equity Interest Pledge Agreement as of the date first above written.

 

 

	
Party A:
    	
Beijing Chengshi Wanglin Information Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jinbo Yao and company seal
    	
 
    
	
Name:
    	
Jinbo Yao
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party   B:
    	
Jinbo Yao
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jinbo Yao
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party C:
    	
Beijing   58 Information Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jinbo Yao and company seal
    	
 
    
	
Name:
    	
Jinbo Yao
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

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Attachments:

 

1.                              Shareholders’ Register of Party C;

 

2.                              The Capital Contribution Certificate for Party C;

 

3.                              Amended and Restated Exclusive Business Cooperation Agreement;

 

4.                              Loan Agreement;

 

5.                              Amended and Restated Exclusive Option Agreement;

 

6.                              Power of Attorney.

 

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Equity Interest Pledge Agreement

 

This Equity Interest Pledge Agreement (this “Agreement”) has been executed by and among the following parties on June 28, 2013 in Beijing, the People’s Republic of China (“China” or the “PRC”):

 

Party A:            Beijing Chengshi Wanglin Information Technology Co., Ltd. (hereinafter “Pledgee”), a wholly foreign owned enterprise, organized and existing under the laws of the PRC, with its address at No.6 Building, Yi 108, Beiyuan Road, Chaoyang District, Beijing, PRC;

 

Party B:            Lianqing Zhang (hereinafter “Pledgor”), a Chinese citizen with Chinese Identification No.:           ; and

 

Party C:            Beijing 58 Information Technology Co., Ltd., a limited liability company organized and existing under the laws of the PRC, with its address at No.2 Building, Yi 108, Beiyuan Road, Chaoyang District, Beijing, PRC.

 

In this Agreement, each of Pledgee, Pledgor and Party C shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas:

 

1.                   Pledgor is a citizen of China who as of the date hereof holds 39.82% of equity interests of Party C, representing RMB3,982,000 in the registered capital of Party C. Party C is a limited liability company registered in Beijing, China, engaging in Internet information services and advertising services. Party C acknowledges the respective rights and obligations of Pledgor and Pledgee under this Agreement, and intends to provide any necessary assistance in registering the Pledge;

 

2.                   Pledgee is a wholly foreign-owned enterprise registered in China. Pledgee and Party C partially owned by Pledgor have executed an Exclusive Business Cooperation Agreement (as defined below) in Beijing; Party C, Pledgee and Pledgor have executed an Exclusive Option Agreement (as defined below); Pledgee and Pledgor have executed a Loan Agreement (as defined below); and Pledgor has executed a Power of Attorney to Pledgee.

 

3.                   To ensure that Party C and Pledgor fully perform their obligations under the Exclusive Business Cooperation Agreement, the Exclusive Option Agreement, the Loan Agreement and the Power of Attorney, Pledgor hereby pledges to the Pledgee all of the equity interest he holds in Party C as security for Party C’s and Pledgor’s obligations under the Exclusive Business Cooperation Agreements, the Exclusive Option Agreement, the Loan Agreement and the Power of Attorney.

 

To perform the provisions of the Transaction Documents, the Parties have mutually agreed to execute this Agreement upon the following terms.

 

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1.                   Definitions

 

Unless otherwise provided herein, the terms below shall have the following meanings:

 

1.1            Pledge: shall refer to the security interest granted by Pledgor to Pledgee pursuant to Article 2 of this Agreement, i.e., the right of Pledgee to be compensated on a preferential basis with the conversion, auction or sales price of the Equity Interest.

 

1.2            Equity Interest: shall refer to all of the equity interest now held and hereafter acquired by Pledgor in Party C.

 

1.3            Term of Pledge: shall refer to the term set forth in Section 3.2 of this Agreement.

 

1.4            Transaction Documents: shall refer to the Amended and Restated Exclusive Business Cooperation Agreement executed by and between Party C and Pledgee on October, 10, 2011 (the “Exclusive Business Cooperation”), the Exclusive Option Agreement executed by and among Party C, Pledgee and Pledgor on June 28, 2013 (the “Exclusive Option Agreement”), the Loan Agreement executed by and between Pledgee and Pledgor on June 28, 2013 (the “Loan Agreement”), Power of Attorney executed on June 28, 2013 by Pledgor (the “Power of Attorney”) and any modification, amendment and restatement to the aforementioned documents.

 

1.5            Contract Obligation: shall refer to all the obligations of Pledgor under the Exclusive Option Agreement, the Power of Attorney, the Loan Agreement and this Agreement; all the obligations of Party C under the Exclusive Cooperation Agreement, the Exclusive Option Agreement and this Agreement.

 

1.6            Secured Indebtedness: shall refer to all the direct, indirect or derivative losses of Pledgee, including loss of expected profits, incurred as a result of any Event of Default (as defined below). The amount of such loss shall be based on, including but not limited to the reasonable business plan and profit forecast of Pledgee, the consulting and service fees payable to Pledgee under the Exclusive Business Cooperation Agreement and all expenses occurred in connection with enforcement by Pledgee of Pledgor’s and/or Party C’s Contract Obligation.

 

1.7            Event of Default: shall refer to any of the circumstances set forth in Article 7 of this Agreement.

 

1.8            Notice of Default: shall refer to the notice issued by Pledgee in accordance with this Agreement declaring an Event of Default.

 

2.                   The Pledge

 

2.1            Pledgor agrees to pledge all the Equity Interest as security for performance of the Contract Obligation and payment of the Secured Indebtedness under this Agreement. Party C hereby assents that Pledgor pledges the Equity

 

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Interest to the Pledgee pursuant to this Agreement.

 

2.2            During the term of the Pledge, Pledgee is entitled to receive dividends distributed on the Equity Interest. Pledgor may receive dividends distributed on the Equity Interest only with prior written consent from Pledgee. Dividends received by Pledgor on Equity Interest shall be, subject to requirement of Pledgee, (1) deposited into an account designated and supervised by Pledgee and used to secure the Contract Obligations and pay the Secured Indebtedness prior and in preference to make any other payment; or (2) unconditionally give to Pledgee or any other person designated by Pledgee to the extent permitted under applicable PRC laws.

 

2.3            Pledgor may subscribe for capital increase in Party C only with prior written consent of Pledgee. Any equity interest obtained by the Pledgor in future capital increase shall be deemed as Equity Interest as well.

 

2.4            In the event that Party C is required by PRC law to be liquidated or dissolved, any interest distributed to Pledgor upon Party C’s dissolution or liquidation shall be (1) deposited into an account designate and supervised by Pledgee and used to secure the Contract Obligations and pay the Secured Indebtedness prior and in preference to make any other payment; or (2) unconditionally give to Pledgee or any other person designated by Pledgee to the extent permitted under applicable PRC laws.

 

3.                   Term of Pledge

 

3.1            The Pledge shall become effective on such date when the pledge of the Equity Interest contemplated herein has been registered with relevant administration for industry and commerce (the “AIC”). The Pledge shall be continuously valid until all Contract Obligations and Secured Indebtedness have been fully performed and paid. Pledgor and Party C shall (1) register the Pledge in the shareholders’ register of Party C within 3 business days following the execution of this Agreement, and (2) submit an application to the AIC for the registration of the Pledge of the Equity Interest contemplated herein within 30 business days following the execution of this Agreement. The parties covenant that for the purpose of registration of the Pledge, the parties hereto and all other shareholders of Party C shall submit to the AIC this Agreement or an equity interest pledge contract in the form required by the AIC at the location of Party C which shall truly reflect the information of the Pledge hereunder (the “AIC Pledge Contract”).  For matters not specified in the AIC Pledge Contract, the parties shall be bound by the provisions of this Agreement. Pledgor and Party C shall submit all necessary documents and complete all necessary procedures, as required by the PRC laws and regulations and the relevant AIC, to ensure that the Pledge of the Equity Interest shall be registered with the AIC as soon as possible after filing.

 

3.2            During the Term of Pledge, in the event Pledgor and/or Party C fails to perform the Contract Obligation or pay Secured Indebtedness, Pledgee shall have the right, but not the obligation, to exercise the Pledge in accordance

 

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with the provisions of this Agreement.

 

4.                   Custody of Records for Equity Interest subject to Pledge

 

4.1            During the Term of Pledge set forth in this Agreement, Pledgor shall deliver to Pledgee’s custody the capital contribution certificate for the Equity Interest and the shareholders’ register containing the Pledge within one week from the execution of this Agreement. Pledgee shall have custody of such documents during the entire Term of Pledge set forth in this Agreement.

 

5.                   Representations and Warranties of Pledgor and Party C

 

As of the execution date of this Agreement, Pledgor and Party C hereby jointly and severally represent and warrant to Pledgee that:

 

5.1            Pledgor is the sole legal and beneficial owner of the Equity Interest.

 

5.2            Pledgee shall have the right to dispose of and transfer the Equity Interest in accordance with the provisions set forth in this Agreement.

 

5.3            Except for the Pledge, Pledgor has not placed any security interest or other encumbrance on the Equity Interest.

 

5.4            Pledgor and Party C have obtained any and all approvals and consents from applicable government authorities and third parties (if required) for execution, delivery and performance of this Agreement.

 

5.5            The execution, delivery and performance of this Agreement will not: (i) violate any relevant PRC laws; (ii) conflict with Party C’s articles of association or other constitutional documents; (iii) result in any breach of or constitute any default under any contract or instrument to which it is a party or by which it is otherwise bound; (iv) result in any violation of any condition for the grant and/or maintenance of any permit or approval granted to any Party; or (v) cause any permit or approval granted to any Party to be suspended, cancelled or attached with additional conditions.

 

6.                   Covenants of Pledgor and Party C

 

6.1            Pledgor and Party C hereby jointly and severally covenant to the Pledgee:

 

6.1.1                     Pledgor shall not transfer the Equity Interest, place or permit the existence of any security interest or other encumbrance on the Equity Interest or any portion thereof, without the prior written consent of Pledgee, except for the performance of the Transaction Documents;

 

6.1.2                     Pledgor and Party C shall comply with the provisions of all laws and regulations applicable to the pledge of rights, and within 5 days of receipt of any notice, order or recommendation issued or prepared

 

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by relevant competent authorities regarding the Pledge, shall present the aforementioned notice, order or recommendation to Pledgee, and shall comply with the aforementioned notice, order or recommendation or submit objections and representations with respect to the aforementioned matters upon Pledgee’s reasonable request or upon consent of Pledgee;

 

6.1.3                     Pledgor and Party C shall promptly notify Pledgee of any event or notice received by Pledgor that may have an impact on Pledgee’s rights to the Equity Interest or any portion thereof, as well as any event or notice received by Pledgor that may have an impact on any guarantees and other obligations of Pledgor arising out of this Agreement.

 

6.1.4                     Party C shall complete the registration procedures for extension of the term of operation within three (3) months prior to the expiration of such term to maintain the validity of this Agreement.

 

6.2            Pledgor agrees that the rights acquired by Pledgee in accordance with this Agreement with respect to the Pledge shall not be interrupted or harmed by Pledgor or any heirs or representatives of Pledgor or any other persons through any legal proceedings.

 

6.3            To protect or perfect the security interest granted by this Agreement for the Contract Obligation and Secured Indebtedness, Pledgor hereby undertakes to execute in good faith and to cause other parties who have an interest in the Pledge to execute all certificates, agreements, deeds and/or covenants required by Pledgee.  Pledgor also undertakes to perform and to cause other parties who have an interest in the Pledge to perform actions required by Pledgee, to facilitate the exercise by Pledgee of its rights and authority granted thereto by this Agreement, and to enter into all relevant documents regarding ownership of Equity Interest with Pledgee or designee(s) of Pledgee (natural persons/legal persons).  Pledgor undertakes to provide Pledgee within a reasonable time with all notices, orders and decisions regarding the Pledge that are required by Pledgee.

 

6.4            Pledgor hereby undertakes to comply with and perform all guarantees, promises, agreements, representations and conditions under this Agreement. In the event of failure or partial performance of its guarantees, promises, agreements, representations and conditions, Pledgor shall indemnify Pledgee for all losses resulting therefrom.

 

7.                   Event of Breach

 

7.1            The following circumstances shall be deemed Event of Default:

 

7.1.1                     Pledgor’s any breach to any obligations under the Transaction Documents and/or this Agreement.

 

7.1.2                     Party C’s any breach to any obligations under the Transaction

 

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Documents and/or this Agreement.

 

7.2            Upon notice or discovery of the occurrence of any circumstances or event that may lead to the aforementioned circumstances described in Section 7.1, Pledgor and Party C shall immediately notify Pledgee in writing accordingly.

 

7.3            Unless an Event of Default set forth in this Section 7.1 has been successfully resolved to Pledgee’s satisfaction within twenty (20) days after the Pledgee and /or Party C delivers a notice to the Pledgor requesting ratification of such Event of Default, Pledgee may issue a Notice of Default to Pledgor in writing at any time thereafter, demanding the Pledgor to immediately exercise the Pledge in accordance with the provisions of Article 8 of this Agreement.

 

8.                   Exercise of Pledge

 

8.1            Pledgee may issue a Notice of Default to Pledgor when exercising the Pledge.

 

8.2            Subject to the provisions of Section 7.3, Pledgee may exercise the right to enforce the Pledge at any time after the issuance of the Notice of Default in accordance with Section 8.1. Once Pledgee elects to enforce the Pledge, Pledgor shall cease to be entitled to any rights or interests associated with the Equity Interest.

 

8.3            After Pledgee issues a Notice of Default Pledgee in accordance with Section 8.1, Pledgee may exercise any remedy measure under applicable PRC laws, the Transaction Documents and this Agreement, including but not limited to be compensated in priority by the conversion of the Equity Pledge or from the proceeds from auction or sale of the Equity Interest.  The Pledgee shall have no liability for any loss incurred by its duly exercise of such rights and powers.

 

8.4            The proceeds from exercise of the Pledge by Pledgee shall be used to pay for tax and expenses incurred by disposing the Equity Interest and perform Contract Obligations and pay the Secured Indebtedness prior and in preference to any other payment.  After the payment of the aforementioned amounts, the remaining balance shall be returned to Pledgor or any other person who have rights to such balance under applicable laws or be deposited to the local notary public office where Pledgor resides, with all expense incurred being borne by Pledgor.  To the extent permitted under applicable PRC laws, Pledgor shall unconditionally give the aforementioned proceeds to Pledgee or any other person designated by Pledgee.

 

8.5            Pledgee has the right to exercise any remedy measure available simultaneously or in any order.  Pledgee may exercise the right to be compensated from in priority by the conversion of the Equity Pledge or from the proceeds from auction or sale of the Equity Interest under this

 

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Agreement, without exercising any other remedy measure first.

 

8.6            Pledgee is entitled to designate an attorney or other representatives to exercise the Pledge on its behalf and Pledgor and Party C shall not raise any objection to such exercise.

 

8.7            When Pledgee disposes of the Pledge in accordance with this Agreement, Pledgor and Party C shall provide necessary assistance to enable Pledgee to enforce the Pledge in accordance with this Agreement.

 

9.                   Breach of Agreement

 

9.1            If Pledgor or Party C conducts any material breach of any term of this Agreement, Pledgee shall have right to terminate this Agreement and require Pledgor or Party C to compensate all damages; this Section 9 shall not prejudice any other rights of Pledgee herein;

 

9.2            If Pledgee conducts any breach of any term of this Agreement, Pledgor or Party C shall not terminate this Agreement in any event unless otherwise required by applicable laws.

 

10.            Assignment

 

10.1     Without Pledgee’s prior written consent, Pledgor shall not have the right to assign or delegate its rights and obligations under this Agreement.

 

10.2     This Agreement shall be binding on Pledgor and its successors and permitted assigns, and shall be valid with respect to Pledgee and each of its successors and assigns.

 

10.3     At any time, Pledgee may assign any and all of its rights and obligations under the Transaction Documents to its designee(s), in which case the assigns shall have the rights and obligations of Pledgee under this Agreement, as if it were the original party to this Agreement. When the Pledgee assigns the rights and obligations under the Business Cooperation Agreement, upon Pledgee’s request, Pledgor and/or Party C shall execute relevant agreements or other documents relating to such assignment.

 

10.4     In the event of a change in Pledgee due to an assignment, Pledgor and/or Party C shall, at the request of Pledgee, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement, and register the same with the relevant AIC.

 

10.5     Pledgor and Party C shall strictly abide by the provisions of this Agreement and other contracts jointly or separately executed by the Parties hereto or any of them, including the Transaction Documents, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability thereof. Any remaining rights of Pledgor with respect to the Equity Interest pledged hereunder shall not be exercised by Pledgor except in accordance with the written instructions of

 

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Pledgee.

 

11.            Termination

 

11.1     Upon the fulfillment of all Contract Obligation and the full payment of all Secured Indebtedness by Pledgor and Party C, Pledgee shall release the Pledge under this Agreement upon Pledgor’s request as soon as reasonably practicable and shall assist Pledgor to de-register the Pledge from the shareholders’ register of Party C and with relevant PRC local administration for industry and commerce.

 

11.2     The provisions under Sections 9, 13, 14 and 11.2 herein of this Agreement shall survive the expiration or termination of this Agreement.

 

12.            Handling Fees and Other Expenses

 

All fees and out of pocket expenses relating to this Agreement, including but not limited to legal costs, costs of production, stamp tax and any other taxes and fees, shall be borne by Party C.

 

13.            Confidentiality

 

The Parties acknowledge that the existence and the terms of this Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance this Agreement are regarded as confidential information. Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders, investors, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, investors, legal counsels or financial advisors shall  be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the staff members or agencies hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Agreement. This Section shall survive the termination of this Agreement for any reason.

 

14.            Governing Law and Resolution of Disputes

 

14.1     The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the laws of China.

 

14.2     In the event of any dispute with respect to the construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement on the

 

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dispute within 30 days after either Party’s request to the other Parties for resolution of the dispute through negotiations, either Party may submit the relevant dispute to the China International Economic and Trade Arbitration Commission for arbitration, in accordance with its Arbitration Rules. The arbitration shall be conducted in Beijing, and the language used in arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties.

 

14.3     Upon the occurrence of any disputes arising from the construction and performance of this Agreement or during the pending arbitration of any dispute, except for the matters under dispute, the Parties to this Agreement shall continue to exercise their respective rights under this Agreement and perform their respective obligations under this Agreement.

 

15.            Notices

 

15.1     All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such party set forth below. A confirmation copy of each notice shall also be sent by E-mail. The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

15.2     Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively given on the date of delivery or refusal at the address specified for notices.

 

15.3     Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of transmission).

 

15.4     For the purpose of notices, the addresses of the Parties are as follows:

 

	
Party A:
    	
Beijing   Chengshi Wanglin Information Technology Co., Ltd.
    
	
Address: 
    	
No.6 Building, Yi 108, Beiyuan Road, Chaoyang District, Beijing
    
	
Attn:
    	
Jinbo Yao
    
	
Phone:
    	
  +8610 64435588-8888
    
	
Facsimile:
    	
  +8610-64459926
    
	
 
    	
 
    
	
Party B:
    	
Lianqing Zhang
    
	
Address:
    	
No. 187,   Anwai Street, Dongcheng District, Beijing
    
	
Phone:
    	
+8610 65630314
    
	
Facsimile:
    	
+8610 65630202
    
	
 
    	
 
    
	
Party C: 
    	
 Beijing   58 Information Technology Co., Ltd.
    
	
Address: 
    	
No.2 Building, Yi   108, Beiyuan Road, Chaoyang District, Beijing
    

 

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Attn:
    	
Jinbo Yao
    
	
Phone:
    	
+8610 64435588-8888
    
	
Facsimile:
    	
+8610-64459926
    

 

15.5     Any Party may at any time change its address for notices by a notice delivered to the other Parties in accordance with the terms hereof.

 

16.            Severability

 

In the event that one or several of the provisions of this Contract are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Contract shall not be affected or compromised in any respect. The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

17.            Attachments

 

The attachments set forth herein shall be an integral part of this Agreement.

 

18.            Effectiveness

 

18.1     This Agreement shall become effective upon execution by the Parties and shall, together with the amended and restated equity interest pledge agreements entered into by Party A and Party C respectively with Su Jianbo, Wang Baoshan, Yao Jinbo and Beijing Wanglingtong Information Techonology Co., Ltd as described in the preamble hereof, replace and supersede the Old Agreement in its entirety from the date it becomes effective.

 

18.2     Any amendments, changes and supplements to this Agreement shall be in writing and shall become effective upon completion of the governmental filing procedures (if applicable) after the affixation of the signatures or seals of the Parties.

 

19.            Language and Counterparts

 

This Agreement is written in Chinese and English in four copies. Pledgor, Pledgee and Party C shall hold one copy respectively and the other copy shall be used for registration.  Each copy of this Agreement shall have equal validity.  In case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.

 

[The Remainder of this page is intentionally left blank]

 

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IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Amended and Restated Equity Interest Pledge Agreement as of the date first above written.

 

 

	
Party A:
    	
Beijing Chengshi Wanglin Information Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jinbo Yao and company seal
    	
 
    
	
Name:
    	
Jinbo Yao
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party   B:
    	
Lianqing Zhang
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Lianqing Zhang
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party C:
    	
Beijing   58 Information Technology Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jinbo Yao and company seal
    	
 
    
	
Name:
    	
Jinbo Yao
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

11

 

Attachments:

 

1.                              Shareholders’ Register of Party C;

 

2.                              The Capital Contribution Certificate for Party C;

 

3.                              Amended and Restated Exclusive Business Cooperation Agreement;

 

4.                              Loan Agreement;

 

5.                              Exclusive Option Agreement;

 

6.                              Power of Attorney.

 

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Amended and Restated Equity Interest Pledge Agreement

 

This Amended and Restated Equity Interest Pledge Agreement (this “Agreement”) has been executed by and among the following parties on June 28, 2013 in Beijing, the People’s Republic of China (“China” or the “PRC”):

 

Party A:                  Beijing Chengshi Wanglin Information Technology Co., Ltd. (hereinafter “Pledgee”), a wholly foreign owned enterprise, organized and existing under the laws of the PRC, with its address at No.6 Building, Yi 108, Beiyuan Road, Chaoyang District, Beijing, PRC;

 

Party B:                    Jianbo Su (hereinafter “Pledgor”), a Chinese citizen with Chinese Identification No.:             ; and

 

Party C:                    Beijing 58 Information Technology Co., Ltd., a limited liability company organized and existing under the laws of the PRC, with its address at No.2 Building, Yi 108, Beiyuan Road, Chaoyang District, Beijing, PRC.

 

In this Agreement, each of Pledgee, Pledgor and Party C shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas:

 

1.                   Pledgor is a citizen of China who as of the date hereof holds 9.04% of equity interests of Party C, representing RMB904,000 in the registered capital of Party C. Party C is a limited liability company registered in Beijing, China, engaging in Internet information services and advertising services. Party C acknowledges the respective rights and obligations of Pledgor and Pledgee under this Agreement, and intends to provide any necessary assistance in registering the Pledge;

 

2.                   Pledgee is a wholly foreign-owned enterprise registered in China. Pledgee and Party C partially owned by Pledgor have executed an Exclusive Business Cooperation Agreement (as defined below) in Beijing; Party C, Pledgee and Pledgor have executed an Exclusive Option Agreement (as defined below); Pledgee and Pledgor have executed a Loan Agreement (as defined below); and Pledgor has executed a Power of Attorney to Pledgee.

 

3.                   To ensure that Party C and Pledgor fully perform their obligations under the Exclusive Business Cooperation Agreement, the Exclusive Option Agreement, the Loan Agreement and the Power of Attorney, Pledgor hereby pledges to the Pledgee all of the equity interest he holds in Party C as security for Party C’s and Pledgor’s obligations under the Exclusive Business Cooperation Agreements, the Exclusive Option Agreement, the Loan Agreement and the Power of Attorney.

 

4.                   Pledgee, Pledgor and Party C entered into an equity interest pledge agreement (the “Old Agreement”) on October 10, 2011. Party A, Party B and Party C intend to enter this Agreement to replace and supersede the Old Agreement and all

 

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documents executed by the Parties in connection with the Old Agreement.

 

5.                   The Parties agree to amend certain provisions of the Old Agreement by executing this Agreement, which shall supersede and replace the Old Agreement upon the execution.

 

To perform the provisions of the Transaction Documents, the Parties have mutually agreed to execute this Agreement upon the following terms.

 

1.                   Definitions

 

Unless otherwise provided herein, the terms below shall have the following meanings:

 

1.1            Pledge: shall refer to the security interest granted by Pledgor to Pledgee pursuant to Article 2 of this Agreement, i.e., the right of Pledgee to be compensated on a preferential basis with the conversion, auction or sales price of the Equity Interest.

 

1.2            Equity Interest: shall refer to all of the equity interest now held and hereafter acquired by Pledgor in Party C.

 

1.3            Term of Pledge: shall refer to the term set forth in Section 3.2 of this Agreement.

 

1.4            Transaction Documents: shall refer to the Amended and Restated Exclusive Business Cooperation Agreement executed by and between Party C and Pledgee on October 10, 2011 (the “Exclusive Business Cooperation”), the Amended and Restated Exclusive Option Agreement executed by and among Party C, Pledgee and Pledgor on June 28, 2013 (the “Exclusive Option Agreement”), the Loan Agreement executed by and between Pledgee and Pledgor on June 28, 2013 (the “Loan Agreement”), Power of Attorney executed on June 28, 2013 by Pledgor (the “Power of Attorney”) and any modification, amendment and restatement to the aforementioned documents.

 

1.5            Contract Obligation: shall refer to all the obligations of Pledgor under the Exclusive Option Agreement, the Power of Attorney, the Loan Agreement and this Agreement; all the obligations of Party C under the Exclusive Cooperation Agreement, the Exclusive Option Agreement and this Agreement.

 

1.6            Secured Indebtedness: shall refer to all the direct, indirect or derivative losses of Pledgee, including loss of expected profits, incurred as a result of any Event of Default (as defined below). The amount of such loss shall be based on, including but not limited to the reasonable business plan and profit forecast of Pledgee, the consulting and service fees payable to Pledgee under the Exclusive Business Cooperation Agreement and all expenses occurred in connection with enforcement by Pledgee of Pledgor’s and/or Party C’s Contract Obligation.

 

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1.7            Event of Default: shall refer to any of the circumstances set forth in Article 7 of this Agreement.

 

1.8            Notice of Default: shall refer to the notice issued by Pledgee in accordance with this Agreement declaring an Event of Default.

 

2.                   The Pledge

 

2.1            Pledgor agrees to pledge all the Equity Interest as security for performance of the Contract Obligation and payment of the Secured Indebtedness under this Agreement. Party C hereby assents that Pledgor pledges the Equity Interest to the Pledgee pursuant to this Agreement.

 

2.2            During the term of the Pledge, Pledgee is entitled to receive dividends distributed on the Equity Interest. Pledgor may receive dividends distributed on the Equity Interest only with prior written consent from Pledgee. Dividends received by Pledgor on Equity Interest shall be, subject to requirement of Pledgee, (1) deposited into an account designated and supervised by Pledgee and used to secure the Contract Obligations and pay the Secured Indebtedness prior and in preference to make any other payment; or (2) unconditionally give to Pledgee or any other person designated by Pledgee to the extent permitted under applicable PRC laws.

 

2.3            Pledgor may subscribe for capital increase in Party C only with prior written consent of Pledgee. Any equity interest obtained by the Pledgor in future capital increase shall be deemed as Equity Interest as well.

 

2.4            In the event that Party C is required by PRC law to be liquidated or dissolved, any interest distributed to Pledgor upon Party C’s dissolution or liquidation shall be (1) deposited into an account designate and supervised by Pledgee and used to secure the Contract Obligations and pay the Secured Indebtedness prior and in preference to make any other payment; or (2) unconditionally give to Pledgee or any other person designated by Pledgee to the extent permitted under applicable PRC laws.

 

3.                   Term of Pledge

 

3.1            The Pledge shall become effective on such date when the pledge of the Equity Interest contemplated herein has been registered with relevant administration for industry and commerce (the “AIC”). The Pledge shall be continuously valid until all Contract Obligations and Secured Indebtedness have been fully performed and paid. Pledgor and Party C shall (1) deregister the pledge under the Old Agreement, and register the Pledge in the shareholders’ register of Party C within 3 business days following the execution of this Agreement, and (2) submit an application to the AIC for deregistration of the pledge under the Old Agreement and the registration of the Pledge of the Equity Interest contemplated herein within 30 business days following the execution of this Agreement. The parties covenant that for the purpose of registration of the Pledge, the parties hereto and all other

 

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shareholders of Party C shall submit to the AIC this Agreement or an equity interest pledge contract in the form required by the AIC at the location of Party C which shall truly reflect the information of the Pledge hereunder (the “AIC Pledge Contract”).  For matters not specified in the AIC Pledge Contract, the parties shall be bound by the provisions of this Agreement. Pledgor and Party C shall submit all necessary documents and complete all necessary procedures, as required by the PRC laws and regulations and the relevant AIC, to ensure that the Pledge of the Equity Interest shall be registered with the AIC as soon as possible after filing.

 

3.2            During the Term of Pledge, in the event Pledgor and/or Party C fails to perform the Contract Obligation or pay Secured Indebtedness, Pledgee shall have the right, but not the obligation, to exercise the Pledge in accordance with the provisions of this Agreement.

 

4.                   Custody of Records for Equity Interest subject to Pledge

 

4.1            During the Term of Pledge set forth in this Agreement, Pledgor shall deliver to Pledgee’s custody the capital contribution certificate for the Equity Interest and the shareholders’ register containing the Pledge within one week from the execution of this Agreement. Pledgee shall have custody of such documents during the entire Term of Pledge set forth in this Agreement.

 

5.                   Representations and Warranties of Pledgor and Party C

 

As of the execution date of this Agreement, Pledgor and Party C hereby jointly and severally represent and warrant to Pledgee that:

 

5.1            Pledgor is the sole legal and beneficial owner of the Equity Interest.

 

5.2            Pledgee shall have the right to dispose of and transfer the Equity Interest in accordance with the provisions set forth in this Agreement.

 

5.3            Except for the Pledge, Pledgor has not placed any security interest or other encumbrance on the Equity Interest.

 

5.4            Pledgor and Party C have obtained any and all approvals and consents from applicable government authorities and third parties (if required) for execution, delivery and performance of this Agreement.

 

5.5            The execution, delivery and performance of this Agreement will not: (i) violate any relevant PRC laws; (ii) conflict with Party C’s articles of association or other constitutional documents; (iii) result in any breach of or constitute any default under any contract or instrument to which it is a party or by which it is otherwise bound; (iv) result in any violation of any condition for the grant and/or maintenance of any permit or approval granted to any Party; or (v) cause any permit or approval granted to any Party to be suspended, cancelled or attached with additional conditions.

 

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6.                   Covenants of Pledgor and Party C

 

6.1            Pledgor and Party C hereby jointly and severally covenant to the Pledgee:

 

6.1.1                     Pledgor shall not transfer the Equity Interest, place or permit the existence of any security interest or other encumbrance on the Equity Interest or any portion thereof, without the prior written consent of Pledgee, except for the performance of the Transaction Documents;

 

6.1.2                     Pledgor and Party C shall comply with the provisions of all laws and regulations applicable to the pledge of rights, and within 5 days of receipt of any notice, order or recommendation issued or prepared by relevant competent authorities regarding the Pledge, shall present the aforementioned notice, order or recommendation to Pledgee, and shall comply with the aforementioned notice, order or recommendation or submit objections and representations with respect to the aforementioned matters upon Pledgee’s reasonable request or upon consent of Pledgee;

 

6.1.3                     Pledgor and Party C shall promptly notify Pledgee of any event or notice received by Pledgor that may have an impact on Pledgee’s rights to the Equity Interest or any portion thereof, as well as any event or notice received by Pledgor that may have an impact on any guarantees and other obligations of Pledgor arising out of this Agreement.

 

6.1.4                     Party C shall complete the registration procedures for extension of the term of operation within three (3) months prior to the expiration of such term to maintain the validity of this Agreement.

 

6.2            Pledgor agrees that the rights acquired by Pledgee in accordance with this Agreement with respect to the Pledge shall not be interrupted or harmed by Pledgor or any heirs or representatives of Pledgor or any other persons through any legal proceedings.

 

6.3            To protect or perfect the security interest granted by this Agreement for the Contract Obligation and Secured Indebtedness, Pledgor hereby undertakes to execute in good faith and to cause other parties who have an interest in the Pledge to execute all certificates, agreements, deeds and/or covenants required by Pledgee.  Pledgor also undertakes to perform and to cause other parties who have an interest in the Pledge to perform actions required by Pledgee, to facilitate the exercise by Pledgee of its rights and authority granted thereto by this Agreement, and to enter into all relevant documents regarding ownership of Equity Interest with Pledgee or designee(s) of Pledgee (natural persons/legal persons).  Pledgor undertakes to provide Pledgee within a reasonable time with all notices, orders and decisions regarding the Pledge that are required by Pledgee.

 

6.4            Pledgor hereby undertakes to comply with and perform all guarantees,

 

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promises, agreements, representations and conditions under this Agreement. In the event of failure or partial performance of its guarantees, promises, agreements, representations and conditions, Pledgor shall indemnify Pledgee for all losses resulting therefrom.

 

7.                   Event of Breach

 

7.1            The following circumstances shall be deemed Event of Default:

 

7.1.1                     Pledgor’s any breach to any obligations under the Transaction Documents and/or this Agreement.

 

7.1.2                     Party C’s any breach to any obligations under the Transaction Documents and/or this Agreement.

 

7.2            Upon notice or discovery of the occurrence of any circumstances or event that may lead to the aforementioned circumstances described in Section 7.1, Pledgor and Party C shall immediately notify Pledgee in writing accordingly.

 

7.3            Unless an Event of Default set forth in this Section 7.1 has been successfully resolved to Pledgee’s satisfaction within twenty (20) days after the Pledgee and /or Party C delivers a notice to the Pledgor requesting ratification of such Event of Default, Pledgee may issue a Notice of Default to Pledgor in writing at any time thereafter, demanding the Pledgor to immediately exercise the Pledge in accordance with the provisions of Article 8 of this Agreement.

 

8.                   Exercise of Pledge

 

8.1            Pledgee may issue a Notice of Default to Pledgor when exercising the Pledge.

 

8.2            Subject to the provisions of Section 7.3, Pledgee may exercise the right to enforce the Pledge at any time after the issuance of the Notice of Default in accordance with Section 8.1. Once Pledgee elects to enforce the Pledge, Pledgor shall cease to be entitled to any rights or interests associated with the Equity Interest.

 

8.3            After Pledgee issues a Notice of Default Pledgee in accordance with Section 8.1, Pledgee may exercise any remedy measure under applicable PRC laws, the Transaction Documents and this Agreement, including but not limited to be compensated in priority by the conversion of the Equity Pledge or from the proceeds from auction or sale of the Equity Interest.  The Pledgee shall have no liability for any loss incurred by its duly exercise of such rights and powers.

 

8.4            The proceeds from exercise of the Pledge by Pledgee shall be used to pay for tax and expenses incurred by disposing the Equity Interest and perform Contract Obligations and pay the Secured Indebtedness prior and in

 

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preference to any other payment.  After the payment of the aforementioned amounts, the remaining balance shall be returned to Pledgor or any other person who have rights to such balance under applicable laws or be deposited to the local notary public office where Pledgor resides, with all expense incurred being borne by Pledgor.  To the extent permitted under applicable PRC laws, Pledgor shall unconditionally give the aforementioned proceeds to Pledgee or any other person designated by Pledgee.

 

8.5            Pledgee has the right to exercise any remedy measure available simultaneously or in any order.  Pledgee may exercise the right to be compensated from in priority by the conversion of the Equity Pledge or from the proceeds from auction or sale of the Equity Interest under this Agreement, without exercising any other remedy measure first.

 

8.6            Pledgee is entitled to designate an attorney or other representatives to exercise the Pledge on its behalf and Pledgor and Party C shall not raise any objection to such exercise.

 

8.7            When Pledgee disposes of the Pledge in accordance with this Agreement, Pledgor and Party C shall provide necessary assistance to enable Pledgee to enforce the Pledge in accordance with this Agreement.

 

9.                   Breach of Agreement

 

9.1            If Pledgor or Party C conducts any material breach of any term of this Agreement, Pledgee shall have right to terminate this Agreement and require Pledgor or Party C to compensate all damages; this Section 9 shall not prejudice any other rights of Pledgee herein;

 

9.2            If Pledgee conducts any breach of any term of this Agreement, Pledgor or Party C shall not terminate this Agreement in any event unless otherwise required by applicable laws.

 

10.            Assignment

 

10.1     Without Pledgee’s prior written consent, Pledgor shall not have the right to assign or delegate its rights and obligations under this Agreement.

 

10.2     This Agreement shall be binding on Pledgor and its successors and permitted assigns, and shall be valid with respect to Pledgee and each of its successors and assigns.

 

10.3     At any time, Pledgee may assign any and all of its rights and obligations under the Transaction Documents to its designee(s), in which case the assigns shall have the rights and obligations of Pledgee under this Agreement, as if it were the original party to this Agreement. When the Pledgee assigns the rights and obligations under the Business Cooperation Agreement, upon Pledgee’s request, Pledgor and/or Party C shall execute relevant agreements or other documents relating to such assignment.

 

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10.4     In the event of a change in Pledgee due to an assignment, Pledgor and/or Party C shall, at the request of Pledgee, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement, and register the same with the relevant AIC.

 

10.5     Pledgor and Party C shall strictly abide by the provisions of this Agreement and other contracts jointly or separately executed by the Parties hereto or any of them, including the Transaction Documents, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability thereof. Any remaining rights of Pledgor with respect to the Equity Interest pledged hereunder shall not be exercised by Pledgor except in accordance with the written instructions of Pledgee.

 

11.            Termination

 

11.1     Upon the fulfillment of all Contract Obligation and the full payment of all Secured Indebtedness by Pledgor and Party C, Pledgee shall release the Pledge under this Agreement upon Pledgor’s request as soon as reasonably practicable and shall assist Pledgor to de-register the Pledge from the shareholders’ register of Party C and with relevant PRC local administration for industry and commerce.

 

11.2     The provisions under Sections 9, 13, 14 and 11.2 herein of this Agreement shall survive the expiration or termination of this Agreement.

 

12.            Handling Fees and Other Expenses

 

All fees and out of pocket expenses relating to this Agreement, including but not limited to legal costs, costs of production, stamp tax and any other taxes and fees, shall be borne by Party C.

 

13.            Confidentiality

 

The Parties acknowledge that the existence and the terms of this Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance this Agreement are regarded as confidential information. Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders, investors, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, investors, legal counsels or financial advisors shall  be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the staff members or agencies

 

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hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Agreement. This Section shall survive the termination of this Agreement for any reason.

 

14.            Governing Law and Resolution of Disputes

 

14.1     The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the laws of China.

 

14.2     In the event of any dispute with respect to the construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement on the dispute within 30 days after either Party’s request to the other Parties for resolution of the dispute through negotiations, either Party may submit the relevant dispute to the China International Economic and Trade Arbitration Commission for arbitration, in accordance with its Arbitration Rules. The arbitration shall be conducted in Beijing, and the language used in arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties.

 

14.3     Upon the occurrence of any disputes arising from the construction and performance of this Agreement or during the pending arbitration of any dispute, except for the matters under dispute, the Parties to this Agreement shall continue to exercise their respective rights under this Agreement and perform their respective obligations under this Agreement.

 

15.            Notices

 

15.1     All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such party set forth below. A confirmation copy of each notice shall also be sent by E-mail. The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

15.2     Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively given on the date of delivery or refusal at the address specified for notices.

 

15.3     Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of transmission).

 

15.4     For the purpose of notices, the addresses of the Parties are as follows:

 

	
Party A:
    	
Beijing   Chengshi Wanglin Information Technology Co., Ltd.
    
	
Address:
    	
No.6 Building, Yi 108, Beiyuan Road, Chaoyang District,
    

 

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Beijing
    
	
Attn:
    	
  Jinbo Yao
    
	
Phone:
    	
     +8610 64435588-8888
    
	
Facsimile:
    	
   +8610-64459926
    
	
 
    	
 
    
	
Party B:
    	
Jianbo Su
    
	
Address:
    	
Room1001, Unit 1, Building 8, Lecheng Guoji, 76 Bai Zi Wan Er Road,   Chaoyang District, Beijing
    
	
Phone:
    	
+8610 64435588-8888
    
	
Facsimile:
    	
+8610-64459926
    
	
 
    	
 
    
	
Party C:
    	
 Beijing 58   Information Technology Co., Ltd.
    
	
Address:
    	
No.2 Building, Yi   108, Beiyuan Road, Chaoyang District, Beijing
    
	
Attn:
    	
Jinbo Yao
    
	
Phone:
    	
+8610 64435588-8888
    
	
Facsimile:
    	
+8610-64459926
    

 

15.5     Any Party may at any time change its address for notices by a notice delivered to the other Parties in accordance with the terms hereof.

 

16.            Severability

 

In the event that one or several of the provisions of this Contract are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Contract shall not be affected or compromised in any respect. The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

17.            Attachments

 

The attachments set forth herein shall be an integral part of this Agreement.

 

18.            Effectiveness

 

18.1     This Agreement shall become effective upon execution by the Parties and shall replace and supersede the Old Agreement and all documents executed by the Parties in connection with the Old Agreement in its entirety from the date it becomes effective.

 

18.2     Any amendments, changes and supplements to this Agreement shall be in writing and shall become effective upon completion of the governmental filing procedures (if applicable) after the affixation of the signatures or seals of the Parties.

 

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19.            Language and Counterparts

 

This Agreement is written in Chinese and English in four copies. Pledgor, Pledgee and Party C shall hold one copy respectively and the other copy shall be used for registration.  Each copy of this Agreement shall have equal validity.  In case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.

 

[The Remainder of this page is intentionally left blank]

 

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IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Amended and Restated Equity Interest Pledge Agreement as of the date first above written.

 

 

	
Party A:
    	
Beijing Chengshi Wanglin Information Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jinbo Yao and company seal
    	
 
    
	
Name:
    	
Jinbo Yao
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party   B:
    	
Jianbo Su
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jianbo Su
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party C:
    	
Beijing   58 Information Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jinbo Yao and company seal
    	
 
    
	
Name:
    	
Jinbo Yao
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

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Attachments:

 

1.                              Shareholders’ Register of Party C;

 

2.                              The Capital Contribution Certificate for Party C;

 

3.                              Amended and Restated Exclusive Business Cooperation Agreement;

 

4.                              Loan Agreement;

 

5.                              Amended and Restated Exclusive Option Agreement;

 

6.                              Power of Attorney.

 

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Amended and Restated Equity Interest Pledge Agreement

 

This Amended and Restated Equity Interest Pledge Agreement (this “Agreement”) has been executed by and among the following parties on June 28, 2013 in Beijing, the People’s Republic of China (“China” or the “PRC”):

 

Party A:                    Beijing Chengshi Wanglin Information Technology Co., Ltd. (hereinafter “Pledgee”), a wholly foreign owned enterprise, organized and existing under the laws of the PRC, with its address at No.6 Building, Yi 108, Beiyuan Road, Chaoyang District, Beijing, PRC;

 

Party B:                    Beijing Wanglintong Information Technology Co., Ltd. (hereinafter “Pledgor”), a limited liability company organized and existing under the laws of the PRC, with its address at Room 201 and Room 202, No. 10 Building, Yi108 Beiyuan Road, Chaoyang District, Beijing, PRC; and

 

Party C:                    Beijing 58 Information Technology Co., Ltd., a limited liability company organized and existing under the laws of the PRC, with its address at No.2 Building, Yi 108, Beiyuan Road, Chaoyang District, Beijing, PRC.

 

In this Agreement, each of Pledgee, Pledgor and Party C shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas:

 

1.                   Pledgor is a limited liability company registered in Beijing, China who as of the date hereof holds 13.34% of equity interests of Party C, representing RMB1,334,000 in the registered capital of Party C. Party C is a limited liability company registered in Beijing, China, engaging in Internet information services and advertising services. Party C acknowledges the respective rights and obligations of Pledgor and Pledgee under this Agreement, and intends to provide any necessary assistance in registering the Pledge;

 

2.                   Pledgee is a wholly foreign-owned enterprise registered in China. Pledgee and Party C partially owned by Pledgor have executed an Exclusive Business Cooperation Agreement (as defined below) in Beijing; Party C, Pledgee and Pledgor have executed an Exclusive Option Agreement (as defined below); Pledgee and Pledgor have executed a Loan Agreement (as defined below); and Pledgor has executed a Power of Attorney to Pledgee.

 

3.                   To ensure that Party C and Pledgor fully perform their obligations under the Exclusive Business Cooperation Agreement, the Exclusive Option Agreement, the Loan Agreement and the Power of Attorney, Pledgor hereby pledges to the Pledgee all of the equity interest he holds in Party C as security for Party C’s and Pledgor’s obligations under the Exclusive Business Cooperation Agreements, the Exclusive Option Agreement, the Loan Agreement and the Power of Attorney.

 

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4.                   Pledgee, Pledgor and Party C entered into an equity interest pledge agreement (the “Old Agreement”) on October 10, 2011. Party A, Party B and Party C intend to enter this Agreement to replace and supersede the Old Agreement and all documents executed by the Parties in connection with the Old Agreement.

 

5.                   The Parties agree to amend certain provisions of the Old Agreement by executing this Agreement, which shall supersede and replace the Old Agreement upon the execution.

 

To perform the provisions of the Transaction Documents, the Parties have mutually agreed to execute this Agreement upon the following terms.

 

1.                   Definitions

 

Unless otherwise provided herein, the terms below shall have the following meanings:

 

1.1            Pledge: shall refer to the security interest granted by Pledgor to Pledgee pursuant to Article 2 of this Agreement, i.e., the right of Pledgee to be compensated on a preferential basis with the conversion, auction or sales price of the Equity Interest.

 

1.2            Equity Interest: shall refer to all of the equity interest now held and hereafter acquired by Pledgor in Party C.

 

1.3            Term of Pledge: shall refer to the term set forth in Section 3.2 of this Agreement.

 

1.4            Transaction Documents: shall refer to the Amended and Restated Exclusive Business Cooperation Agreement executed by and between Party C and Pledgee on October 10, 2011 (the “Exclusive Business Cooperation”), the Amended and Restated Exclusive Option Agreement executed by and among Party C, Pledgee and Pledgor on June 28, 2013 (the “Exclusive Option Agreement”), the Loan Agreement executed by and between Pledgee and Pledgor on June 28, 2013 (the “Loan Agreement”), Power of Attorney executed on June 28, 2013 by Pledgor (the “Power of Attorney”) and any modification, amendment and restatement to the aforementioned documents.

 

1.5            Contract Obligation: shall refer to all the obligations of Pledgor under the Exclusive Option Agreement, the Power of Attorney, the Loan Agreement and this Agreement; all the obligations of Party C under the Exclusive Cooperation Agreement, the Exclusive Option Agreement and this Agreement.

 

1.6            Secured Indebtedness: shall refer to all the direct, indirect or derivative losses of Pledgee, including loss of expected profits, incurred as a result of any Event of Default (as defined below). The amount of such loss shall be based on, including but not limited to the reasonable business plan and profit forecast of Pledgee, the consulting and service fees payable to

 

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Pledgee under the Exclusive Business Cooperation Agreement and all expenses occurred in connection with enforcement by Pledgee of Pledgor’s and/or Party C’s Contract Obligation.

 

1.7            Event of Default: shall refer to any of the circumstances set forth in Article 7 of this Agreement.

 

1.8            Notice of Default: shall refer to the notice issued by Pledgee in accordance with this Agreement declaring an Event of Default.

 

2.                   The Pledge

 

2.1            Pledgor agrees to pledge all the Equity Interest as security for performance of the Contract Obligation and payment of the Secured Indebtedness under this Agreement. Party C hereby assents that Pledgor pledges the Equity Interest to the Pledgee pursuant to this Agreement.

 

2.2            During the term of the Pledge, Pledgee is entitled to receive dividends distributed on the Equity Interest. Pledgor may receive dividends distributed on the Equity Interest only with prior written consent from Pledgee. Dividends received by Pledgor on Equity Interest shall be, subject to requirement of Pledgee, (1) deposited into an account designated and supervised by Pledgee and used to secure the Contract Obligations and pay the Secured Indebtedness prior and in preference to make any other payment; or (2) unconditionally give to Pledgee or any other person designated by Pledgee to the extent permitted under applicable PRC laws.

 

2.3            Pledgor may subscribe for capital increase in Party C only with prior written consent of Pledgee. Any equity interest obtained by the Pledgor in future capital increase shall be deemed as Equity Interest as well.

 

2.4            In the event that Party C is required by PRC law to be liquidated or dissolved, any interest distributed to Pledgor upon Party C’s dissolution or liquidation shall be (1) deposited into an account designate and supervised by Pledgee and used to secure the Contract Obligations and pay the Secured Indebtedness prior and in preference to make any other payment; or (2) unconditionally give to Pledgee or any other person designated by Pledgee to the extent permitted under applicable PRC laws.

 

3.                   Term of Pledge

 

3.1            The Pledge shall become effective on such date when the pledge of the Equity Interest contemplated herein has been registered with relevant administration for industry and commerce (the “AIC”). The Pledge shall be continuously valid until all Contract Obligations and Secured Indebtedness have been fully performed and paid. Pledgor and Party C shall (1) deregister the pledge under the Old Agreement, and register the Pledge in the shareholders’ register of Party C within 3 business days following the execution of this Agreement, and (2) submit an application to the AIC for deregistration of the pledge under the Old Agreement and the registration of

 

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the Pledge of the Equity Interest contemplated herein within 30 business days following the execution of this Agreement. The parties covenant that for the purpose of registration of the Pledge, the parties hereto and all other shareholders of Party C shall submit to the AIC this Agreement or an equity interest pledge contract in the form required by the AIC at the location of Party C which shall truly reflect the information of the Pledge hereunder (the “AIC Pledge Contract”).  For matters not specified in the AIC Pledge Contract, the parties shall be bound by the provisions of this Agreement. Pledgor and Party C shall submit all necessary documents and complete all necessary procedures, as required by the PRC laws and regulations and the relevant AIC, to ensure that the Pledge of the Equity Interest shall be registered with the AIC as soon as possible after filing.

 

3.2            During the Term of Pledge, in the event Pledgor and/or Party C fails to perform the Contract Obligation or pay Secured Indebtedness, Pledgee shall have the right, but not the obligation, to exercise the Pledge in accordance with the provisions of this Agreement.

 

4.                   Custody of Records for Equity Interest subject to Pledge

 

4.1            During the Term of Pledge set forth in this Agreement, Pledgor shall deliver to Pledgee’s custody the capital contribution certificate for the Equity Interest and the shareholders’ register containing the Pledge within one week from the execution of this Agreement. Pledgee shall have custody of such documents during the entire Term of Pledge set forth in this Agreement.

 

5.                   Representations and Warranties of Pledgor and Party C

 

As of the execution date of this Agreement, Pledgor and Party C hereby jointly and severally represent and warrant to Pledgee that:

 

5.1            Pledgor is the sole legal and beneficial owner of the Equity Interest.

 

5.2            Pledgee shall have the right to dispose of and transfer the Equity Interest in accordance with the provisions set forth in this Agreement.

 

5.3            Except for the Pledge, Pledgor has not placed any security interest or other encumbrance on the Equity Interest.

 

5.4            Pledgor and Party C have obtained any and all approvals and consents from applicable government authorities and third parties (if required) for execution, delivery and performance of this Agreement.

 

5.5            The execution, delivery and performance of this Agreement will not: (i) violate any relevant PRC laws; (ii) conflict with Party C’s articles of association or other constitutional documents; (iii) result in any breach of or constitute any default under any contract or instrument to which it is a party or by which it is otherwise bound; (iv) result in any violation of any condition for the grant and/or maintenance of any permit or approval

 

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granted to any Party; or (v) cause any permit or approval granted to any Party to be suspended, cancelled or attached with additional conditions.

 

6.                   Covenants of Pledgor and Party C

 

6.1            Pledgor and Party C hereby jointly and severally covenant to the Pledgee:

 

6.1.1                     Pledgor shall not transfer the Equity Interest, place or permit the existence of any security interest or other encumbrance on the Equity Interest or any portion thereof, without the prior written consent of Pledgee, except for the performance of the Transaction Documents;

 

6.1.2                     Pledgor and Party C shall comply with the provisions of all laws and regulations applicable to the pledge of rights, and within 5 days of receipt of any notice, order or recommendation issued or prepared by relevant competent authorities regarding the Pledge, shall present the aforementioned notice, order or recommendation to Pledgee, and shall comply with the aforementioned notice, order or recommendation or submit objections and representations with respect to the aforementioned matters upon Pledgee’s reasonable request or upon consent of Pledgee;

 

6.1.3                     Pledgor and Party C shall promptly notify Pledgee of any event or notice received by Pledgor that may have an impact on Pledgee’s rights to the Equity Interest or any portion thereof, as well as any event or notice received by Pledgor that may have an impact on any guarantees and other obligations of Pledgor arising out of this Agreement.

 

6.1.4                     Party C shall complete the registration procedures for extension of the term of operation within three (3) months prior to the expiration of such term to maintain the validity of this Agreement.

 

6.2            Pledgor agrees that the rights acquired by Pledgee in accordance with this Agreement with respect to the Pledge shall not be interrupted or harmed by Pledgor or any heirs or representatives of Pledgor or any other persons through any legal proceedings.

 

6.3            To protect or perfect the security interest granted by this Agreement for the Contract Obligation and Secured Indebtedness, Pledgor hereby undertakes to execute in good faith and to cause other parties who have an interest in the Pledge to execute all certificates, agreements, deeds and/or covenants required by Pledgee.  Pledgor also undertakes to perform and to cause other parties who have an interest in the Pledge to perform actions required by Pledgee, to facilitate the exercise by Pledgee of its rights and authority granted thereto by this Agreement, and to enter into all relevant documents regarding ownership of Equity Interest with Pledgee or designee(s) of Pledgee (natural persons/legal persons).  Pledgor undertakes to provide Pledgee within a reasonable time with all notices, orders and decisions

 

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regarding the Pledge that are required by Pledgee.

 

6.4            Pledgor hereby undertakes to comply with and perform all guarantees, promises, agreements, representations and conditions under this Agreement. In the event of failure or partial performance of its guarantees, promises, agreements, representations and conditions, Pledgor shall indemnify Pledgee for all losses resulting therefrom.

 

7.                   Event of Breach

 

7.1            The following circumstances shall be deemed Event of Default:

 

7.1.1                     Pledgor’s any breach to any obligations under the Transaction Documents and/or this Agreement.

 

7.1.2                     Party C’s any breach to any obligations under the Transaction Documents and/or this Agreement.

 

7.2            Upon notice or discovery of the occurrence of any circumstances or event that may lead to the aforementioned circumstances described in Section 7.1, Pledgor and Party C shall immediately notify Pledgee in writing accordingly.

 

7.3            Unless an Event of Default set forth in this Section 7.1 has been successfully resolved to Pledgee’s satisfaction within twenty (20) days after the Pledgee and /or Party C delivers a notice to the Pledgor requesting ratification of such Event of Default, Pledgee may issue a Notice of Default to Pledgor in writing at any time thereafter, demanding the Pledgor to immediately exercise the Pledge in accordance with the provisions of Article 8 of this Agreement.

 

8.                   Exercise of Pledge

 

8.1            Pledgee may issue a Notice of Default to Pledgor when exercising the Pledge.

 

8.2            Subject to the provisions of Section 7.3, Pledgee may exercise the right to enforce the Pledge at any time after the issuance of the Notice of Default in accordance with Section 8.1. Once Pledgee elects to enforce the Pledge, Pledgor shall cease to be entitled to any rights or interests associated with the Equity Interest.

 

8.3            After Pledgee issues a Notice of Default Pledgee in accordance with Section 8.1, Pledgee may exercise any remedy measure under applicable PRC laws, the Transaction Documents and this Agreement, including but not limited to be compensated in priority by the conversion of the Equity Pledge or from the proceeds from auction or sale of the Equity Interest.  The Pledgee shall have no liability for any loss incurred by its duly exercise of such rights and powers.

 

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8.4            The proceeds from exercise of the Pledge by Pledgee shall be used to pay for tax and expenses incurred by disposing the Equity Interest and perform Contract Obligations and pay the Secured Indebtedness prior and in preference to any other payment.  After the payment of the aforementioned amounts, the remaining balance shall be returned to Pledgor or any other person who have rights to such balance under applicable laws or be deposited to the local notary public office where Pledgor resides, with all expense incurred being borne by Pledgor.  To the extent permitted under applicable PRC laws, Pledgor shall unconditionally give the aforementioned proceeds to Pledgee or any other person designated by Pledgee.

 

8.5            Pledgee has the right to exercise any remedy measure available simultaneously or in any order.  Pledgee may exercise the right to be compensated from in priority by the conversion of the Equity Pledge or from the proceeds from auction or sale of the Equity Interest under this Agreement, without exercising any other remedy measure first.

 

8.6            Pledgee is entitled to designate an attorney or other representatives to exercise the Pledge on its behalf and Pledgor and Party C shall not raise any objection to such exercise.

 

8.7            When Pledgee disposes of the Pledge in accordance with this Agreement, Pledgor and Party C shall provide necessary assistance to enable Pledgee to enforce the Pledge in accordance with this Agreement.

 

9.                   Breach of Agreement

 

9.1            If Pledgor or Party C conducts any material breach of any term of this Agreement, Pledgee shall have right to terminate this Agreement and require Pledgor or Party C to compensate all damages; this Section 9 shall not prejudice any other rights of Pledgee herein;

 

9.2            If Pledgee conducts any breach of any term of this Agreement, Pledgor or Party C shall not terminate this Agreement in any event unless otherwise required by applicable laws.

 

10.            Assignment

 

10.1     Without Pledgee’s prior written consent, Pledgor shall not have the right to assign or delegate its rights and obligations under this Agreement.

 

10.2     This Agreement shall be binding on Pledgor and its successors and permitted assigns, and shall be valid with respect to Pledgee and each of its successors and assigns.

 

10.3     At any time, Pledgee may assign any and all of its rights and obligations under the Transaction Documents to its designee(s), in which case the assigns shall have the rights and obligations of Pledgee under this Agreement, as if it were the original party to this Agreement. When the

 

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Pledgee assigns the rights and obligations under the Business Cooperation Agreement, upon Pledgee’s request, Pledgor and/or Party C shall execute relevant agreements or other documents relating to such assignment.

 

10.4     In the event of a change in Pledgee due to an assignment, Pledgor and/or Party C shall, at the request of Pledgee, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement, and register the same with the relevant AIC.

 

10.5     Pledgor and Party C shall strictly abide by the provisions of this Agreement and other contracts jointly or separately executed by the Parties hereto or any of them, including the Transaction Documents, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability thereof. Any remaining rights of Pledgor with respect to the Equity Interest pledged hereunder shall not be exercised by Pledgor except in accordance with the written instructions of Pledgee.

 

11.            Termination

 

11.1     Upon the fulfillment of all Contract Obligation and the full payment of all Secured Indebtedness by Pledgor and Party C, Pledgee shall release the Pledge under this Agreement upon Pledgor’s request as soon as reasonably practicable and shall assist Pledgor to de-register the Pledge from the shareholders’ register of Party C and with relevant PRC local administration for industry and commerce.

 

11.2     The provisions under Sections 9, 13, 14 and 11.2 herein of this Agreement shall survive the expiration or termination of this Agreement.

 

12.            Handling Fees and Other Expenses

 

All fees and out of pocket expenses relating to this Agreement, including but not limited to legal costs, costs of production, stamp tax and any other taxes and fees, shall be borne by Party C.

 

13.            Confidentiality

 

The Parties acknowledge that the existence and the terms of this Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance this Agreement are regarded as confidential information. Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders, investors, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided

 

8

 

that such shareholders, investors, legal counsels or financial advisors shall  be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the staff members or agencies hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Agreement. This Section shall survive the termination of this Agreement for any reason.

 

14.            Governing Law and Resolution of Disputes

 

14.1     The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the laws of China.

 

14.2     In the event of any dispute with respect to the construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement on the dispute within 30 days after either Party’s request to the other Parties for resolution of the dispute through negotiations, either Party may submit the relevant dispute to the China International Economic and Trade Arbitration Commission for arbitration, in accordance with its Arbitration Rules. The arbitration shall be conducted in Beijing, and the language used in arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties.

 

14.3     Upon the occurrence of any disputes arising from the construction and performance of this Agreement or during the pending arbitration of any dispute, except for the matters under dispute, the Parties to this Agreement shall continue to exercise their respective rights under this Agreement and perform their respective obligations under this Agreement.

 

15.            Notices

 

15.1     All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such party set forth below. A confirmation copy of each notice shall also be sent by E-mail. The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

15.2     Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively given on the date of delivery or refusal at the address specified for notices.

 

15.3     Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of transmission).

 

15.4     For the purpose of notices, the addresses of the Parties are as follows:

 

9

 

	
Party   A:
    	
Beijing   Chengshi Wanglin Information Technology Co., Ltd.
    
	
Address:
    	
No.6 Building, Yi 108, Beiyuan Road, Chaoyang District, Beijing
    
	
Attn:
    	
Jinbo Yao
    
	
Phone:
    	
  +8610 64435588-8888
    
	
Facsimile:
    	
  +8610-64459926
    
	
 
    	
 
    
	
Party B:
    	
Beijing Wanglintong Information   Technology Co., Ltd.
    
	
Address:
    	
Room 201 and Room 202, No. 10 Building, Yi108 Beiyuan   Road, Chaoyang District, Beijing
    
	
Phone:
    	
  +8610 64435588-8888
    
	
Facsimile:
    	
  +8610-64459926
    
	
 
    	
 
    
	
Party C:
    	
Beijing 58 Information   Technology Co., Ltd.
    
	
Address:
    	
No.2 Building, Yi   108, Beiyuan Road, Chaoyang District, Beijing
    
	
Attn:
    	
Jinbo Yao
    
	
Phone:
    	
  +8610 64435588-8888
    
	
Facsimile:
    	
  +8610-64459926
    

 

15.5     Any Party may at any time change its address for notices by a notice delivered to the other Parties in accordance with the terms hereof.

 

16.            Severability

 

In the event that one or several of the provisions of this Contract are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Contract shall not be affected or compromised in any respect. The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

17.            Attachments

 

The attachments set forth herein shall be an integral part of this Agreement.

 

18.            Effectiveness

 

18.1     This Agreement shall become effective upon execution by the Parties and shall replace and supersede the Old Agreement and all documents executed by the Parties in connection with the Old Agreement in its entirety from the date it becomes effective.

 

18.2     Any amendments, changes and supplements to this Agreement shall be in writing and shall become effective upon completion of the governmental

 

10

 

filing procedures (if applicable) after the affixation of the signatures or seals of the Parties.

 

19.            Language and Counterparts

 

This Agreement is written in Chinese and English in four copies. Pledgor, Pledgee and Party C shall hold one copy respectively and the other copy shall be used for registration.  Each copy of this Agreement shall have equal validity.  In case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.

 

[The Remainder of this page is intentionally left blank]

 

11

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Amended and Restated Equity Interest Pledge Agreement as of the date first above written.

 

 

	
Party A:
    	
Beijing Chengshi Wanglin Information Technology Co., Ltd.
    
	
 
    	
 
    
	
By:
    	
/s/ Jinbo Yao and company seal
    	
 
    
	
Name:
    	
Jinbo Yao
    
	
Title:
    	
Legal Representative
    
	
 
    	
 
    
	
 
    	
 
    
	
Party   B:
    	
Beijing Wanglintong   Information Technology Co., Ltd.
    
	
 
    	
 
    
	
By:
    	
/s/ Jinbo Yao and company seal
    	
 
    
	
Name:
    	
Jinbo Yao
    
	
Title:
    	
Legal Representative
    
	
 
    	
 
    
	
 
    	
 
    
	
Party C:
    	
Beijing   58 Information Technology Co., Ltd.
    
	
 
    	
 
    
	
By:
    	
/s/ Jinbo Yao and company seal
    	
 
    
	
Name:
    	
Jinbo Yao
    
	
Title:
    	
Legal Representative
    

 

12

 

Attachments:

 

1.                              Shareholders’ Register of Party C;

 

2.                              The Capital Contribution Certificate for Party C;

 

3.                              Amended and Restated Exclusive Business Cooperation Agreement;

 

4.                              Loan Agreement;

 

5.                              Amended and Restated Exclusive Option Agreement;

 

6.                              Power of Attorney.

 

13

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