Document:

Exhibit 4.14

 

LOAN CONTRACT

 

This Loan Contract (this “Contract”) is executed on October 10, 2018 in Beijing, the People’s Republic of China (the “PRC”) by and between:

 

Party A:          Beijing Shijitong Technology Co., Ltd. (the “Lender”)

 

Unified Social Credit         91110108397827646N

Code:

 

Party B:

 

XIAO Wenjie (“Party B1”), a Chinese citizen whose ID number is ******************;

 

LIU Qiangdong (“Party B2”, collectively the “Borrowers” with Party B1), a Chinese citizen whose ID number is ******************;

 

The Lender and the Borrowers are hereinafter referred to as a “Party” individually and the “Parties” collectively.

 

WHEREAS:

 

The Borrowers hold in aggregate 100% equity interests (the “Borrower Interests”) in Beijing Lejiaxin Network Technology Co., Ltd.  (the “Borrower Company”), a limited liability company incorporated in Shenzhen, the PRC with a registered capital of RMB50,000,000.00.

 

The Lender intends to extend a loan to the Borrowers for the purposes set out in this Contract. The Parties hereby agree as follows through friendly consultations:

 

1.                            Loan

 

1.1                 In accordance with the terms and conditions of this Contract, the Lender agrees to extend a loan totaling RMB49,900,000.00 (the “Loan”) to the Borrowers. The term of the Loan shall be ten (10) years as from the execution date of this Contract. Unless otherwise agreed by the Parties in writing, the term of the Loan shall be renewed automatically upon each of its expirations for another ten (10) years.

 

1.2                 During the original or renewed term of the Loan, the Borrowers must make prepayment immediately upon occurrence of any of the following circumstances:

 

1.1.1                where the 30-day period expires after the Borrowers receive the written notice demanding repayment from the Lender;

 

1.1.2                where the Borrower, in the case of an individual, dies, losses or becomes limited in terms of civil capacity, or in the case of a limited liability company, is dissolved or liquidated;

 

1.1.3                where the Borrowers are no longer employed by the Lender, the Borrower Company or their affiliates for whatever reason;

 

1.1.4                where the Borrowers are engaged or involved in criminal activities;

 

 

1.1.5                where any third party make claims against the Borrowers with an amount of RMB100,000 or more; or

 

1.1.6                where in accordance with the applicable PRC laws, the Lender may directly hold the equity interests in the Borrower Company, the Borrower Company may lawfully continue with its business, and the Lender decides to exercise its exclusive purchase option under the exclusive purchase option contract (the “Exclusive Purchase Option Contract”) referred to herein.

 

1.2                 Subject to satisfaction of all conditions precedent set out in Section 2, the Lender agrees to remit the Loan to the bank account designated by the Borrowers within twenty (20) days of the receipt of the written notice indicating the Borrowers’ demand for the Loan. The Borrowers shall issue an acknowledgement of receipt to the Lender on the same day when they receive such amount. The Loan extended by the Lender under this Contract shall be utilized by the Borrowers only, and shall not be used by the successors or assignees of the Borrowers.

 

1.3                 The Borrowers agree to accept the above Loan extended by the Lender, and hereby agree and undertake to use the Loan for funding business development of the Borrower Company. Without prior written consent of the Lender, the Borrowers shall not use such amount for any other purpose.

 

1.4                 Both the Lender and the Borrowers agree and acknowledge that the Borrowers may make repayment only in following manner determined by the Lender: the Borrowers shall transfer all the Borrower Interests they hold to the Lender or the legal or natural person designated by the Lender upon the Lender’s exercise of its option to buy the Borrower Interests under the Exclusive Purchase Option Contract.

 

1.5                 Both the Lender and the Borrowers agree and acknowledge that, to the extent permitted, any proceeds obtained by the Borrowers from transfer of the Borrower Interests shall be used for repaying for the Loan in accordance with this Contract in such manner as designated by the Lender.

 

1.6                 Both the Lender and the Borrowers agree and acknowledge that, to the extent permitted by applicable laws, the Lender shall have the right but no obligation to buy, or designated other legal or natural persons to buy, in whole or in part the Borrower Interests at any time at the purchase price agreed under the Exclusive Purchase Option Contract.

 

1.7                 Both the Lender and the Borrowers agree and acknowledge that the Borrowers agree to create a pledge over all the equity interests they hold in the Borrower Company in favor of the Lender to secure the debt repayment hereunder. For the avoidance of doubt, the Parties acknowledge that, in addition to the debt under this Contract, the principal debt secured by the equity pledge under this section also includes all the debts owed by the Borrowers and the Borrower Company to the Lender under the Exclusive Business Cooperation Agreement, the Exclusive Purchase Option Contract and the Power of Attorney Agreement (as defined below).

 

1.8                 Each of the Borrowers has executed an irrevocable Power of Attorney Agreement (the “Power of Attorney Agreement”), under which they authorize the Lender or any legal or natural person designated by the Lender to exercise all their rights as the shareholders of the Borrower Company.

 

1.9                 When the Borrowers transfer their Borrower Interests to the Lender or the person designated by the Lender, if the transfer price is equal to or lower than the principal of the Loan under this Contract, the Loan under this Contract shall be deemed to be interest free loan; if the transfer price is higher than the principal of the Loan under this Contract, the portion of the transfer price in excess of the principal shall be deemed to be the interests on the principal of the Loan and shall be repaid by the Borrowers to the Lender.

 

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2.                            Conditions Precedent for Loan Extending

 

The Lender will not be obligated to extend the Loan to the Borrowers in accordance with Section 1.1 unless and until all the conditions below are satisfied or waived by the Lender in writing.

 

2.1                 The Lender receives on time the drawdown notice duly signed by the Borrowers in accordance with Section 1.2. The Borrower Company and the Lender or the legal or natural person designated by the Lender has duly entered into a definite exclusive business cooperation agreement (the “Exclusive Business Cooperation Agreement”), under which the Lender or the person designated by the Lender will, to the extent permitted by the PRC laws, provide the Borrower Company with technical services and business consultancy services in the capacity of an exclusive service provider.

 

2.2                 The Borrower, the Borrower Company and the Lender or the legal or natural person designated by the Lender have duly entered into a definite equity pledge contract (the “Equity Pledge Contract”), under which the Borrowers agree to create a pledge over all the Borrower Interests in favor of the Lender or the person designated by the Lender.

 

2.3                 The Borrower, the Lender and the Borrower Company have duly entered into a definite Exclusive Purchase Option Contract, under which the Borrowers will, to the extent permitted by the PRC laws, irrevocably grant the Lender an exclusive Purchase Option to buy all Borrower Interests.

 

2.4                 The Borrowers and the Lender have entered into an irrevocable Power of Attorney Agreement, under which the Borrowers authorize the Lender or any legal or natural person designated by the Lender to exercise all their rights as the shareholders of the Borrower Company

 

2.5                 The above Equity Pledge Contract, Power of Attorney Agreement, Exclusive Purchase Option Contract and Exclusive Business Cooperation Agreement are executed on or prior to the execution date of this Contract, and entered into full legal force. There have been no event that breaches or prejudices any of such contracts or agreements, and all the relevant filings, approvals, authorizations, registrations and government procedures have been secured or completed in accordance with such contracts or agreements, if required.

 

2.6                 The representations and warranties made by the Borrowers under Section 3.2 are truthful, complete and accurate, and contain no misleading content.

 

2.7                 The Borrowers have not breached any of the undertakings they make under Section 4 of this Contract, and there is no actual or threatened event that may affect the performance of their obligations under this Contract.

 

3.                            Representations and Warranties

 

3.1                 From the execution date to the termination of this Contract, the Lender represents and warrants to the Borrowers as follows:

 

3.1.1                The Lender is a company duly incorporated and existing under the PRC laws;

 

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3.1.2                The Lender has the authority to execute and perform this Contract. Its execution and performance of this Contract are in line with its scope of business and the provisions in its articles of association and other constitutional documents. The Lender has obtained all necessary and appropriate approvals and authorizations required for the execution and performance of this Contract; and

 

3.1.3                Upon execution, this Contract shall constitute lawful, valid and enforceable obligations for the Lender.

 

3.2                 From the execution date to the termination of this Contract, the Borrowers represent and warrant as follows:

 

3.2.1                The Borrowers have the authority to execute and perform this Contract, and have obtained all necessary and appropriate approvals and authorizations required for the execution and performance of this Contract;

 

3.2.2                Upon execution, this Contract shall constitute lawful, valid and enforceable obligations for the Borrowers; and

 

3.2.3                There is no actual or potential dispute, action, arbitration, administrative procedures or other legal proceedings involving the Borrowers.

 

4.                            Undertakings of the Borrowers

 

4.1                 The Borrowers irrevocably undertake in the capacity of the shareholders of the Borrower Company that they will, during the term of this Contract, procure the Borrower Company:

 

4.1.1                to strictly comply with the provisions of the Exclusive Purchase Option Contract and the Exclusive Business Cooperation Agreement, and not to engage in any action or omission that is sufficient to affect the validity and enforceability of the Exclusive Purchase Option Contract and the Exclusive Business Cooperation Agreement;

 

4.1.2                to enter into contracts/agreements on business cooperation with the Lender or the person designated by the Lender or the person designated by the Lender at any time as requested by the Lender, and ensure the strict performance of such contracts/agreements;

 

4.1.3                to provide the Lender with all its operating and financial information at the request of the Lender;

 

4.1.4                to inform the Lender promptly of any existing or potential litigation, arbitration or administrative procedures in connection with its assets, business and revenue; and

 

4.1.5                to appoint any person designated by the Lender as director of the Borrower Company at the request of the Lender.

 

4.2                 The Borrowers undertake that during the term of this Contract:

 

4.2.1                they shall exert their best efforts to cause the Borrower Company to continue with its existing business;

 

4.2.2                they shall strictly comply with the provisions of this Contract, the Power of Attorney Agreement, the Equity Pledge Contract and the Exclusive Purchase Option Contract, and shall not engage in any action or omission that is sufficient to affect the validity and enforceability of this Contract, the Power of Attorney Agreement, the Equity Pledge Contract and the Exclusive Purchase Option Contract;

 

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4.2.3                unless otherwise provided under the Equity Pledge Contract, they shall not sell, transfer, charge or otherwise dispose of the legal or beneficial interests in the Borrower Interests, or permit any other security interests to be created over the same;

 

4.2.4                they shall procure the shareholders meeting and/or board of directors of the Borrower Company to disapprove any sale, transfer, charge or other disposal of the legal or beneficial interests in the Borrower Interests, or permission of any other security interests to be created over the same, in each case without prior written consent of the Lender, unless in favor of the Lender or the person designated by the Lender;

 

4.2.5                they shall procure the shareholders meeting and/or board of directors of the Borrower Company to disapprove the merger or consolidation of the Borrower Company with any person or acquisition of or investment in any person by the Borrower Company, in each case without prior written consent of the Lender;

 

4.2.6                they shall inform the Lender promptly of any actual or threatened litigation, arbitration or administrative procedures in connection with the Borrower Interests;

 

4.2.7                they shall execute all such documents, take all such actions, make all such allegations, or present such defense against all claims as are necessary and appropriate for maintaining their ownership over the Borrower Interests;

 

4.2.8                without prior written consent of the Lender, they shall not take any action or omission that may cause a material adverse effect on the assets, business and liabilities of the Borrower Company;

 

4.2.9                they shall, at the request of the Lender, appoint any person designated by the Lender as director of the Borrower Company;

 

4.2.10         to the extent permitted by the PRC laws, they shall, upon the request of the Lender from time to time, unconditionally transfer the Borrower Interests to the Lender or the person designated by the Lender, and cause other shareholders of the Borrower Company to waive their pre-emptive rights to the equity interests transfer under this paragraph;

 

4.2.11         to the extent permitted by the PRC laws, they shall, upon the request of the Lender from time to time, cause other shareholders of the Borrower Company to unconditionally transfer all the equity interests they hold in the Borrower Company to the Lender or the representative designated by the Lender, in which case, the Borrowers shall waive their pre-emptive rights to the equity interests transfer under this paragraph;

 

4.2.12         the Borrowers shall use the purchase price for repaying for the Loan first if the Lender purchases the Borrower Interests from them in accordance with the Exclusive Purchase Option Contract; and

 

4.2.13         without prior written consent of the Lender, they shall not supplement, change or amend their articles of association in any manner, increase or decrease the registered capital, or change the capital structure in any form.

 

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5.                            Liabilities for Breach of Contract

 

5.1                 Either Party that breaches this Contract and thus causes it impossible to perform this Contract in whole or in part shall bear the liability for breach of contract, and indemnify the other Party against the losses (including litigation fees and attorney fees) thus caused. Where both Parties are in breach of this Contract, they shall bear their respective liabilities according to the actual circumstances.

 

5.2                 Where the Borrowers fail to perform their obligations to make repayment within the period set out in this Contract, they shall pay the default interests at a rate of 0.1% of the overdue amount on a daily basis, until all the principal, default interests and other amount are paid up.

 

6.                            Notice

 

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

 

6.1.1                Notices given by personal delivery, courier service, registered mail with postage prepaid shall be deemed effectively given on the date of receipt or rejection at the address specified for notices; or

 

6.1.2                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).

 

6.2                 The addresses of the Parties for receiving notices are as follows:

 

Lender:

 

	
Beijing Shijitong Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
27/F, CES Tower, No. 3099 Keyuan South Road,   Nanshan District, Shenzhen
    
	
 
    	
 
    	
 
    
	
Attn:
    	
 
    	
XIAO Wenjie
    
	
 
    	
 
    	
 
    
	
Tel.:
    	
 
    	
0755-3368 8788
    

 

Borrowers:

 

	
XIAO Wenjie/LIU Qiangdong
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
27/F, CES Tower, No. 3099 Keyuan South Road,   Nanshan District, Shenzhen
    
	
 
    	
 
    	
 
    
	
Tel.:
    	
 
    	
0755-********
    

 

6.3                 Any Party may send a notice to the other Party as provided in this Section to change its address used to receive notice.

 

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7.                            Confidentiality

 

The Parties acknowledge that any oral or written information exchanged between the Parties in connection with the preparation and performance this Contract constitute 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: (i) is or becomes available to the general public (other than through the receiving Party’s unauthorized disclosure); (ii) is required to be disclosed by applicable laws or regulations or rules or regulations of any stock exchange; or (iii) is necessary to be disclosed by any Party to its legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such 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 employees of or agencies engaged by any Party shall be deemed disclosure by such Party itself and such Party shall be held liable for breach of this Contract. This Section shall survive the termination of this Agreement for any reason.

 

8.                            Governing Law and Dispute Resolution

 

8.1                 The execution, effectiveness, construction, performance, amendment and termination of this Contract and the resolution of disputes hereunder shall be governed by the formally published and publicly available laws of China. Matters not covered by formally published and publicly available laws of China shall be governed by international legal principles and practices.

 

8.2                 In the event of any dispute with respect to the construction and performance of this Contract, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement within 30 days after either Party requests 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 then effective arbitration rules. The arbitration shall be conducted in Beijing, and the language shall be Chinese. The arbitration award shall be final and binding on all Parties.

 

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

 

9.                            Miscellaneous

 

9.1                 This Contract shall take effect on the day when it is executed by the Parties and expire on the day when the Parties have completed the performance of their obligations under this Contract.

 

9.2                 This Contract is made in Chinese in four counterparts of equal legal force with each of the Lender and the Borrower holding one.

 

9.3                 The Parties may amend and supplement this Contract by written agreement. The amendment agreement and/or supplementary agreement among the Parties in connection with this Contract shall be integral part of and have the equal legal effect with this Contract.

 

9.4                 In the event that one or several provisions hereof 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 Agreement shall not be affected or compromised in any aspect. The Parties shall negotiate in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law 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.

 

9.5                 The schedules, if any, to this Contract shall be integral part of and have equal legal effect with this Contract.

 

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[Signature page follows]

 

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IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute sign this Loan Contract as of the date first above written.

 

	
Lender:
    	
 
    
	
 
    	
 
    
	
Beijing Shijitong Technology Co., Ltd. (Seal)
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ XIAO Wenjie
    	
 
    
	
 
    	
 
    	
 
    
	
Name: 
    	
XIAO Wenjie
    	
 
    
	
 
    	
 
    
	
Title: 
    	
Legal Representative
    	
 
    
	
 
    	
 
    
	
Borrowers:
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ XIAO Wenjie
    	
 
    
	
 
    	
 
    	
 
    
	
Name: 
    	
XIAO Wenjie
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ LIU Qiangdong
    	
 
    
	
 
    	
 
    	
 
    
	
Name: 
    	
LIU Qiangdong
    	
 
    
				

 

 

Appendix 1

 

Loan Amount

 

	
Borrower
    	
 
    	
Loan Amount (RMB)
    	
 
    
	
XIAO Wenjie
    	
 
    	
49,835,320
    	
 
    
	
LIU Qiangdong
    	
 
    	
64,680
    	
 
    
	
Total
    	
 
    	
49,900,000Exhibit 4.17

 

Equity Pledge Contract

 

This Equity Pledge Contract (this “Contract”) is made and entered into by and among the following parties on June 1, 2018, in Beijing, the People’s Republic of China (“China” or “PRC”):

 

	
Party A:
    	
 
    	
Beijing Shijitong Technology Co., Ltd. (“Pledgee”)
    
	
 
    	
 
    	
 
    
	
Unified Social Credit Code:
    	
 
    	
91110108397827646N
    
	
 
    	
 
    	
 
    
	
Party B:
    	
 
    	
XIAO Wenjie (“Party B1”), a Chinese citizen whose ID number is   ******************;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LI Wenbin (“Party B2”), a Chinese citizen whose ID number is   ******************;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Party B1 and Party B2 are collectively referred to   as the “Pledgers” or “Party B”.
    
	
 
    	
 
    	
 
    
	
Party C:
    	
 
    	
Shenzhen Xinjie Investment Co., Ltd.
    
	
 
    	
 
    	
 
    
	
Unified Social Credit Code:
    	
 
    	
91440300359619977T
    

 

In this Contract, The Pledgee, the Pledgers and the Party C are hereinafter referred to individually as a “Party” and collectively the “Parties”.

 

Whereas:

 

1.                        The Pledgers are citizens/limited liability companies of China who as of the date hereof hold 100% of equity interests of Party C in total. Party C is a limited liability company registered in Beijing, China, engaging in investment management, investment consulting, guarantee business (excluding financing guarantee business and other restricted businesses) , industrial and commercial investments (specific projects to be separately applied for); economic information consulting; entrusted asset management(shall not engage in trust, financial asset management, securities asset management and other business), equity investment, equity investment fund management (securities investment, raising funds publicly and management of publicly raised funds prohibited); enterprise management consulting, enterprise image planning, enterprise financial consulting, supply chain management and supporting services; online commercial activities, sales of dyed knitwear and electronic products; domestic trade; import/export business; and real estate development and operation on land plots for which use rights have been lawfully obtained. Party B1 and Party B2 respectively hold 95% and 5% of Party C’s equity interests. Party C acknowledges the respective rights and obligations of the Pledgers and the Pledgee hereunder and agrees to provide any necessary assistance for the registration of the Pledge;

 

2.                        The Pledgee is a wholly foreign-owned enterprise registered in Beijing, China. The Pledgee and Party C entered into an Exclusive Business Cooperation Agreement (“Exclusive Business Cooperation Agreement”) on December 22, 2015; the Pledgee entered into an Exclusive Purchase Option Contract (“Exclusive Purchase Option Contract”) with the Pledgers and Party C on March 10, 2017; the Pledgers and Pledgee signed an Power of Attorney Agreement (“Power of Attorney Agreement”) on June 1, 2018; the Pledgers and Pledgee signed an Loan Contract on May 10, 2017 and June 1, 2018, respectively (“Loan Contract”);

 

 

3.                        To ensure the performance by Party C and the Pledgers of their obligations under the Exclusive Business Cooperation Agreement, Exclusive Purchase Option Contract, Power of Attorney Agreement (collectively referred to as “Transaction Documents”), the Pledgers pledge with the Pledgee all of their equity in Party C as security for the performance of the Exclusive Business Cooperation Agreement, the Exclusive Purchase Option Contract, and the Power of Attorney Agreement by Party C and the Pledgers.

 

To perform the provisions of the Transaction Documents, the Parties hereby agree as follows through mutual negotiations.

 

1.                            Definitions

 

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

 

1.1                 “Pledge”: shall refer to the security interest created by the Pledgers in favor of the Pledgee pursuant to Section 2 of this Contract, i.e., the right of the Pledgee to be paid in priority from the proceeds from the transfer, auction or sale of the Equity Interest.

 

1.2                 “Equity Interest”: shall refer to all equity interests currently held by and hereafter acquired by the Pledgers in Party C.

 

1.3                 “Term of Pledge”: shall refer to the term set forth in Section 3 of this Contract.

 

1.4                 “Transaction Documents”: shall refer to the Exclusive Business Cooperation Agreement, the Exclusive Purchase Option Contract, the Power of Attorney Agreement and any revision, amendment and/or restatement thereto.

 

1.5                 “Contractual Obligations”: shall refer to all the obligations of the Pledgers under the Exclusive Purchase Option Contract, the Power of Attorney Agreement and this Contract; as well as all the obligations of Party C under the Exclusive Business Cooperation Agreement, the Exclusive Purchase Option Contract and this Contract.

 

1.6                 “Secured Indebtedness”: shall refer to any and all direct, indirect, derivative losses and losses of predictable benefits incurred due to any default by the Pledgers and/or Party C, the amount of which shall be determined based on the pledgee’s reasonable business plan and profit forecast; service fees payable by Party C under the Exclusive Business Cooperation Agreement; and all costs and expenses incurred by the Pledgee in enforcing the Pledgers and/or Party C to perform their contractual obligations.

 

1.7                 “Event of Default”: shall refer to any of the circumstances as enumerated in Section 7 of this Contract.

 

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

 

2.                            Pledge

 

2.1                 The Pledgers agree to pledge all the Equity Interest that it lawfully owns and has the right to dispose of to the Pledgee as security for payment of the Secured Indebtedness under this Contract, and Party C hereby assents to such pledge.

 

2.2                 During the Term of Pledge, the Pledgee is entitled to receive dividends distributed on the Equity Interest. The Pledgers may receive dividends distributed on the Equity Interest only with prior written consent of the Pledgee. Dividends received by the Pledgers on Equity Interest shall be, as required by the Pledgee, (1) deposited into an account designated and supervised by the Pledgee and applied first to pay the Secured Indebtedness; or (2) unconditionally donated to the Pledgee or any other person designated by the Pledgee to the extent permitted under applicable PRC laws.

 

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2.3                 The Pledgers may subscribe for capital increase in Party C only with prior written consent of the Pledgee. Any equity interest obtained by the Pledgers as a result of the Pledgers’ subscription of the increased registered capital of the Company shall also be deemed as Equity Interest.

 

2.4                 In the event that Party C is to be liquidated or dissolved under compulsory laws of China, any interest distributed to the Pledgers upon Party C’s dissolution or liquidation shall, at the request of the Pledgee, be (i) deposited into an account designate and supervised by the Pledgee and applied first to pay the Secured Indebtedness; or (ii) unconditionally donated to the Pledgee or any other person designated by the Pledgee to the extent permitted under applicable PRC laws.

 

3.                            Term of Pledge

 

3.1              The Pledge shall become effective on such date when it is registered with competent administration for industry and commerce (the “AIC”) at the location of Party C. The Pledge shall remain effective until full discharge of all Contractual Obligations. All Parties agree that the Pledgers and Party C shall (i) register the Pledge in the shareholders’ register of Party C within 3 business days following execution of this Contract, and (ii) 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 Contract. The Pledgers and Party C shall submit to the AIC all necessary documents and complete all necessary formalities to ensure that the Pledge of the Equity Interest shall be registered with the AIC as soon as possible.

 

3.2              During the Term of Pledge, in the event that the Pledgers and/or Party C fail to perform the Contractual Obligations, the Pledgee shall have the right, but not the obligation, to dispose of the Pledge in accordance with the provisions of this Contract.

 

4.                            Custody of Equity Interest Records

 

4.1                 During the Term of Pledge, the Pledgers shall deliver to the Pledgee’s custody the capital contribution certificate for the Equity Interest and the shareholders’ register indicating the Pledge within one week following execution of this Contract. The Pledgee shall have custody of such documents during the entire Term of Pledge.

 

4.2                 During the Term of Pledge, the Pledgers shall have the right to collect dividends accrued on the Equity Interest.

 

5.                            Representations and Warranties of the Pledgers and Party C

 

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

 

5.1                 The Pledgers are the sole legal and beneficial owner of the Equity Interest.

 

5.2                 Except for the Pledge, the Pledgers have not created any security interest or other encumbrance on the Equity Interest.

 

5.3                 The Pledgee shall have the right to dispose of and transfer the Equity Interest in accordance with the provisions of this Contract.

 

5.4                 The Pledgers and Party C have obtained any and all approvals and consents from competent government authorities and third parties (if required) for execution, delivery and performance of this Contract.

 

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5.5                 The execution, delivery and performance of this Contract 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 imposed with additional conditions.

 

6.                            Covenants and Further Agreement of the Pledgers and Party C

 

6.1                 During the term of this Contract, the Pledgers and Party C hereby jointly and severally covenant to the Pledgee that the Pledgers and Party C:

 

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

 

6.1.2                shall promptly notify the Pledgee of any event or notice received by the Pledgers that may have an impact on the Equity Interest or any portion thereof, as well as any event or notice received by the Pledgers that may have an impact on any guarantees and other obligations of the Pledgers hereunder.

 

6.2                 The Pledgers agree that the rights acquired by the Pledgee in accordance with this Contract with respect to the Pledge shall not be interrupted or jeopardized by the Pledgers or any heirs or representatives of the Pledgers or any other persons through any legal proceedings.

 

6.3                 To protect or perfect the security hereunder for the Contractual Obligations and Secured Indebtedness, the Pledgers hereby undertakes to execute in good faith and to cause other parties who have an interest in the Pledge to execute all such certificates, contracts, deeds and/or covenants, and take all such actions as required by the Pledgee, to facilitate the exercise by the Pledgee of its rights and authority hereunder, to enter into all relevant documents regarding ownership of Equity Interest with the Pledgee or assignee(s) of the Pledgee (natural persons/legal persons), and to provide the Pledgee within a reasonable time with all notices, orders and decisions regarding the Pledge that the Pledgee deems necessary.

 

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

 

7.                            Event of Breach

 

7.1                 The following circumstances shall be deemed Event of Default:

 

7.1.1                The Pledgers and/or Party B breach any obligations under the Transaction Documents and/or this Contract;

 

7.1.2                The Pledgers have serious misstatement or mistake in any statement or warranty made in Section 5 of this Contract and/or the Pledgers violate any warranty in Section 5 of this Contract;

 

4

 

7.1.3                The Pledgers and Party C fail to complete the registration of equity pledge with the registration authority in accordance with Section 3.1.

 

7.1.4                The Pledgers and Party C violate any provision of this Contract;

 

7.1.5                Except otherwise clearly stipulated in Section 6.1.1, the Pledgers transfer or intend to transfer or surrender the Equity Interest or assign the Equity Interest without the Pledgee’s written consent;

 

7.1.6                The Pledgers (i) are required to repay or perform in advance or (ii) fails to repay or perform upon maturity any debt obligations owed to any third party such as loan, guarantee, indemnification and promise;

 

7.1.7                Any government approval, license, permit or authorization that renders this Contract enforceable, lawful and valid is withdrawn, terminated, invalid or substantially changed;

 

7.1.8                The enactment of governing laws renders this Contract unlawful or makes the Pledgers unable to continue performing its obligations hereunder;

 

7.1.9                The Pledgers’ assets experience negative change to the extent that affects the Pledgers’ ability to perform its obligations hereunder;

 

7.1.10         Party B’s heirs or custodians only partially perform or refuse to perform their payment obligations under the Transaction Documents;

 

7.1.11         Any other circumstance where the Pledgers cannot or possibly cannot exercise its rights over the Pledge.

 

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, the Pledgers shall immediately notify the Pledgee in writing accordingly.

 

7.3                 Unless an Event of Default set forth in this Section 7.1 has been successfully resolved to the Pledgee’s satisfaction, the Pledgee may issue a Notice of Default to the Pledgers upon the occurrence of the Event of Default or at any time thereafter, demanding the Pledgers and/or Party C to immediately perform their due obligations under the Transaction Documents and/or dispose of the Pledge in accordance with Section 8 of this Contract.

 

8.                            Exercise of Pledge

 

8.1                 When the Pledgers and Party C are yet to fully perform their Contractual Obligations under the Transaction Documents, the Pledgers shall not transfer the Pledge or its Equity Interest in Party C without the Pledgee’s written consent.

 

8.2                 The Pledgee may issue a written Notice of Default to the Pledgers when it exercises the Pledge.

 

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

 

8.4                 The Pledgee shall the have right to be paid in priority with all or part of the Equity Interest from the proceeds from the transfer, auction or sale of the Equity Interest until the complete compensation of all outstanding payments due under the Transaction Documents and all other due payments to the Pledgee. The Pledgee shall not be liable for any loss incurred by its due exercise of such rights and powers.

 

5

 

8.5                 The Pledgee may exercise any remedy available simultaneously or in any order. The Pledgee may exercise the right to be paid in priority with the Equity Interest from the proceeds from auction or sale of the Equity Interest under this Contract, without recourse to any other remedy measure first.

 

8.6                 When the Pledgee disposes of the Pledge in accordance with this Contract, the Pledgers and Party C shall provide necessary assistance to enable the Pledgee to enforce the Pledge in accordance with this Contract.

 

9.                            Assignment

 

9.1                 Without the Pledgee’s prior written consent, the Pledgers shall not assign or delegate their rights and obligations under this Contract.

 

9.2                 This Contract shall be binding on the Pledgers and his/her successors and permitted assignees, and shall be valid with respect to the Pledgee and each of his/her successors and assignees.

 

9.3                 The Pledgee may at any time assign any and all of its rights and obligations under the Transaction Documents to its assignee(s) (natural persons/legal persons), in which case the assignee shall enjoy and undertake the rights and obligations of the Pledgee under this Contract, as if it were the original party to this Contract. When the assignee transfers its rights and obligations under the Transaction Documents, the Pledgers shall execute relevant agreements or other documents related to such transfer as required by the Pledgee.

 

9.4                 In the event of change of the Pledgee due to assignment, the Pledgers shall, at the request of the Pledgee, execute a new pledge contract with the new the Pledgee on the same terms and conditions as this Contract.

 

9.5                 The Pledgers shall strictly abide by the provisions of this Contract and other contracts jointly or separately executed by all or any of the Parties hereto, including the Exclusive Purchase Option Contract and the Power of Attorney Agreement, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability hereof and thereof. Any residual rights of the Pledgers with respect to the Equity Pledged hereunder shall not be exercised by the Pledgers except in accordance with the written instructions of the Pledgee.

 

10.                     Termination

 

Upon the sufficient and complete fulfillment of all Contractual Obligations and the full payment of all Secured Indebtedness by the Pledgers and Party C, this Contract shall be terminated and the Pledgee shall terminate this Contract within reasonable and effective scope.

 

Sections 10, 12 and 14 of this Contract shall survive the expiration or termination of this Contract.

 

11.                     Handling Fees and Other Expenses

 

All fees and out of pocket expenses relating to this Contract, including but not limited to legal costs, costs of production, stamp tax and any other taxes and fees, shall be borne by Party C. If the Pledgee is required under applicable laws to bear certain taxes and fees, the Pledgers shall cause Party C to reimburse in full such taxes and fees paid by the Pledgee.

 

6

 

12.                     Confidentiality

 

The Parties acknowledge that any oral or written information exchanged between the Parties in connection with the preparation and performance this Contract constitute 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: (i) is or becomes available to the general public (other than through the receiving Party’s unauthorized disclosure); (ii) is required to be disclosed by applicable laws or regulations or rules or regulations of any stock exchange; or (iii) is necessary to be disclosed by any Party to its legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such 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 employees of or agencies engaged by any Party shall be deemed disclosure by such Party itself and such Party shall be held liable for breach of this Contract. This Section shall survive the termination of this Agreement for any reason.

 

13.                     Governing Law and Dispute Resolution

 

13.1          The execution, effectiveness, construction, performance, amendment and termination of this Contract and the dispute resolution hereunder shall be governed by the promulgated and publicly available laws of China. For matters not covered by the promulgated and publicly available laws of China, the principles and practices of international laws shall apply.

 

13.2          In the event of any dispute with respect to the construction and performance of this Contract, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement within 30 days after either Party requests 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 (CIETAC) for arbitration in accordance with its then effective Arbitration Rules. The arbitration shall be conducted in Beijing. The language of arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties.

 

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

 

14.                     Notices

 

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

 

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

 

14.1.2         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).

 

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14.2          The addresses of the Parties for receiving notices are as follows:

 

	
Party A:
    	
 
    
	
 
    	
 
    
	
Address:
    	
27/F CSE Tower, N0.3099 Keyuan South Road,   Nanshan District, Shenzhen
    
	
 
    	
 
    
	
Attn:
    	
XIAO Wenjie
    
	
 
    	
 
    
	
Tel.:
    	
0755-********
    
	
 
    	
 
    
	
 
    	
 
    
	
Party B:
    	
 
    
	
 
    	
 
    
	
XIAO Wenjie
    	
 
    
	
 
    	
 
    
	
Address:
    	
27/F CSE Tower, N0.3099 Keyuan South Road,   Nanshan District, Shenzhen
    
	
 
    	
 
    
	
Tel.:
    	
0755-********
    
	
 
    	
 
    
	
LI Wenbin
    	
 
    
	
 
    	
 
    
	
Address:
    	
27/F CSE Tower, N0.3099 Keyuan South Road,   Nanshan District, Shenzhen
    
	
 
    	
 
    
	
Tel.:
    	
***********
    
	
 
    	
 
    
	
 
    	
 
    
	
Party C:
    	
 
    
	
 
    	
 
    
	
Address:
    	
27/F CSE Tower, N0.3099 Keyuan South Road,   Nanshan District, Shenzhen
    
	
 
    	
 
    
	
Attn:
    	
XIAO Wenjie
    
	
 
    	
 
    
	
Tel.:
    	
0755-********
    

 

14.3          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.

 

15.                     Severability

 

In the event that one or several provisions hereof 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 Agreement shall not be affected or compromised in any aspect. The Parties shall negotiate in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law 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.

 

16.                     Schedules

 

The schedules hereto shall form an integral part of this Contract.

 

17.                     Effectiveness

 

17.1          This Contract shall come into force upon being signed by the Parties. Any amendment, change and supplement to this Contract shall be made in written form and become effective after being signed and stamped by the Parties and upon the completion of the registration with the government (if applicable).

 

8

 

17.2          This Contract is written in Chinese in four counterparts of equal legal force, with each Party holding one.

 

17.3  The Equity Pledge Agreement signed the Parties on March 10, 2017 and the Supplementary Agreement to the Equity Pledge Agreement signed on May 10, 2017 shall be automatically terminated as at the execution date hereof.

 

[Signature page follows]

 

9

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Equity Pledge Contract as of the date first above written.

 

	
Party A:
    	
Beijing   Shijitong Technology Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ XIAO Wenjie
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
XIAO Wenjie
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party B:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ XIAO Wenjie
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
XIAO Wenjie
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ LI Wenbin
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
LI Wenbin
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party C:
    	
Shenzhen Xinjie   Investment Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ XIAO Wenjie
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
XIAO Wenjie
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

 

Schedules

 

1.                        Capital Contribution Certificate

 

2.                        Shareholders’ Register of Shenzhen Xinjie Investment Co., Ltd.

 

 

Schedule 1

 

Capital Contribution Certificate

 

This is to certify that XIAO Wenjie (ID No. ******************) has subscribed to the contribution of RMB47,500,000.00, thus holding 95% equity interest of Shenzhen Xinjie Investment Co., Ltd. and that all of such 95% equity interest has been pledged to Beijing Shijitong Technology Co., Ltd.

 

	
 
    	
Company:
    	
Shenzhen   Xinjie Investment Co., Ltd.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/XIAO Wenjie
    
	
 
    	
 
    	
Name:
    	
XIAO Wenjie
    
	
 
    	
 
    	
Title:
    	
Legal Representative
    
	
 
    	
 
    	
Date:
    	
June 1, 2018
    

 

 

Schedule 1

 

Capital Contribution Certificate

 

This is to certify that LI Wenbin (ID No. ******************) has subscribed to the contribution of RMB2,500,000.00, thus holding 5% equity interest of Shenzhen Xinjie Investment Co., Ltd. and that all of such 5% equity interest has been pledged to Beijing Shijitong Technology Co., Ltd.

 

	
 
    	
Company:
    	
Shenzhen   Xinjie Investment Co., Ltd.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ XIAO Wenjie
    
	
 
    	
 
    	
Name:
    	
XIAO Wenjie
    
	
 
    	
 
    	
Title:
    	
Legal Representative
    
	
 
    	
 
    	
Date:
    	
June 1, 2018
    

 

 

Schedule 2

 

Shareholders’ Register

of

Shenzhen Xinjie Investment Co., Ltd.

 

	
Shareholder’s
   name
    	
 
    	
ID No. /
   Registration No.
    	
 
    	
Amount of
   Subscription
   (RMB)
    	
 
    	
Ratio of 
   Contribution
    	
 
    	
Equity Pledge
    
	
XIAO Wenjie
    	
 
    	
******************
    	
 
    	
46,500,000.00
    	
 
    	
95%
    	
 
    	
XIAO Wenjie owns 95% equity interest of Shenzhen   Xinjie Investment Co., Ltd. and all of such 95% equity interest has been   pledged to Beijing Shijitong Technology Co., Ltd.
    
	
LI Wenbin
    	
 
    	
*************
   *****
    	
 
    	
2,500,000.00
    	
 
    	
5%
    	
 
    	
LI Wenbin owns 5% equity interest of Shenzhen Xinjie   Investment Co., Ltd. and all of such 5% equity interest has been pledged   to Beijing Shijitong Technology Co., Ltd.
    

 

	
 
    	
Company:
    	
Shenzhen Xinjie   Investment Co., Ltd.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ XIAO Wenjie
    
	
 
    	
 
    	
Name:
    	
XIAO Wenjie
    
	
 
    	
 
    	
Title:
    	
Legal Representative
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Shareholder:
    	
XIAO   Wenjie
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature:
    	
/s/ XIAO Wenjie
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Shareholder:
    	
LI Wenbin
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature:
    	
/s/ LI Wenbin
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Dated  :
    	
June 1, 2018

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