Document:

Exhibit 4.11

 

Business Operations Agreement

 

This Business Operations Agreement (this “Agreement”) is made as of June 15, 2016, in Beijing, the People’s Republic of China (the “PRC”) by and among:

 

Beijing Jingdong Century Trade Co., Ltd., with registered address at Room B168, Building 2, 99 Kechuang 14 Street, Beijing Economic and Technological Development Zone, Beijing (“Party A”)

 

Beijing Jingdong 360 Degree E-Commerce Co., Ltd., a limited liability company incorporated and existing under the laws of the PRC, with registered address at Room 222, Building C, No. 18 Kechuang Street, Beijing Economic and Technological Development Zone, Beijing (“Party B”).

 

And

 

Richard Qiangdong Liu, with PRC identification number of  ***;

 

Yayun Li, with PRC identification number of ***; and

 

Pang Zhang, with PRC identification number of ***

 

(LIU Qiangdong, Yayun Li and Pang Zhang collectively, “Party C”)

 

(Party A, Party B and Party C Individually a “Party”, and collectively the “Parties”)

 

WHEREAS:

 

A                                       Party A is a wholly foreign-owned enterprise duly incorporated and validly existing under the PRC laws;

 

B                                       Party B is a limited liability company duly incorporated and validly existing under the PRC laws;

 

C                                       A business relationship has been established between Party A and Party B by entering into an Exclusive Consulting and Services Agreement, whereby Party B is required to make all payments to Party A thereunder. Therefore, the daily operations of Party B will have a material impact on its ability to pay the payables to Party A; and

 

D                                       Party C is shareholders of Party B whose 45%, 30% and 25% equity interests are respectively owned by Richard Qiangdong Liu, Yayun Li and Pang Zhang.

 

NOW, THEREFORE, the Parties hereby agree and intend to be legally bound as follows through friendly negotiations and in the principles of equity and mutual benefit:

 

 

1.                                      Negative Undertakings

 

In order to ensure Party B’s performance of the agreements between Party A and Party B and all its obligations owed to Party A, Party B and Party C hereby confirm and agree that unless with prior written consent from Party A or a third party appointed by Party A, Party B shall not conduct any transaction which may materially affect any of its assets, businesses, employees, duties, rights or operations, including but not limited to the following:

 

1.1                               to conduct any business that is beyond the normal business scope or in a manner inconsistent with past practices;

 

1.2                               to borrow money or incur any debt from any third party;

 

1.3                               to change or dismiss any director or to dismiss and replace any senior management member;

 

1.4                               to sell to or acquire from any third party, or otherwise dispose any of its material assets or rights, including but not limited to any intellectual property rights;

 

1.5                               to provide guarantee in favor of any third party or impose any encumbrance upon any of its assets (including intellectual property rights);

 

1.6                               to amend its articles of association or change its scope of business;

 

1.7                               to change its ordinary course of business or modify any material internal bylaws or systems;

 

1.8                               to assign any of the rights or obligations under this Agreement to any third party;

 

1.9                               to make significant adjustment to any of its business operations, marketing strategies, operation policies or client relations; and

 

1.10                        to make any form of distribution of dividend or bonus.

 

2.                                      Operational and Human Resource Management

 

2.1                               Party B and Party C hereby agree to accept and strictly perform the comments and instructions from Party A from time to time regarding employment and dismissal of its employees, the daily business management and financial management.

 

2.2                               Party B and Party C hereby jointly and severally agree that Party C shall appoint the person elected in accordance with the procedures required by applicable laws and regulations and the articles of association of Party B or designated by Party A as director (or managing director) or supervisor of Party B, and cause such director to elect the person recommended by Party A as the chairman of the board (if any), and appoint the persons designated by Party A as Party B’s General Manager, Chief Financial Officer, and other officers.

 

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2.3                               If any of the above directors or officers resigns or is dismissed by Party A, he or she will lose the qualification to hold any position in Party B and, under such circumstance, Party C shall remove such person from his or her position in Party B and immediately elect or appoint any other candidate designated by Party A to assume such position.

 

2.4                               For the purpose of Section 2.3, Party C shall effect all internal or external procedures necessary to accomplish the dismissal and appointment in accordance with relevant laws and regulations, the articles of association of Party B and this Agreement.

 

2.5                               Party C hereby agree to, upon execution of this Agreement, simultaneously sign a Power of Attorney whereby Party C shall authorize irrevocably any individual  appointed by Party A to exercise shareholders’ rights, including the full voting right of a shareholder at Party B’s shareholders’ meetings.  Party C further agrees to replace the authorized person appointed according to the above mentioned power of attorney (the “Trustee”) at any time pursuant to the requirements of Party A by revoking its authorization to the Trustee and granting the same authorization to such other person designated by Party A by execution of a power of attorney in the form and substance similar to that contemplated in the preceding sentence with immediate effect.

 

3.                                      Right of Information

 

The Trustee may be provided with any information regarding operations, clients, financial conditions and employees of Party B and have access to relevant materials of Party B in connection with exercising any of the rights authorized to it.  The right of information provided in this Section 3 shall be the same with the right to access Party B’s information by any of its shareholders, and will be exercised with sufficient facility from Party B without any interference.

 

4.                                      Waiver

 

It is agreed by the Parties that unless caused by the material neglect or willful misconduct of Party A, Party A will not be held liable for any indemnity by any other Party or any third Party due to the Trustee’s exercise of any of its rights.

 

5.                                      Representations and Warranties by Party C

 

5.1                               Party C, in the capacity of natural person, is Chinese citizens having full civil capabilities to execute, deliver and perform this Agreement and perform its obligations hereunder or, in the capacity of legal person, is a limited liability company duly incorporated and validly existing under the PRC laws, has full and independent capabilities to execute, deliver and perform this Agreement.

 

5.2                               Party C has the right to execute, deliver and perform this Agreement without any approval or authorization.

 

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5.3                               None of Party C’s execution and performance of this Agreement is in violation of any of its articles of association, or any laws, regulations, governmental approvals, authorizations, notices or other documents binding upon or having effect upon Party C, or any contracts with or any covenants to any third party by Party C.

 

5.4                               Once executed, this Agreement will constitute legal and valid obligations enforceable against Party C.

 

5.5                               Unless otherwise provided under this Agreement or the Equity Pledge Agreement, there is no mortgage, pledge or any other security interest, or restrictive agreement with any third party, or offer to transfer to any third party, or covenant in response to any offer to buy from any third party, or any agreement with any third party to transfer, in each case regarding any of Party B’s equity interests by Party C.

 

5.6                               Party C will be in strict compliance with this Agreement and actively perform its obligations hereunder.  Party C will also cause Party B to be in strict compliance with this Agreement and refrain from any action or omission which may affect validity or enforceability of this Agreement.

 

6.                                      Representations and Warranties by Party B

 

6.1                               Party B is a limited liability company duly incorporated and validly existing under the PRC laws.

 

6.2                               Party B has received all consents and authorizations necessary and desirable to execute, deliver and perform this Agreement.

 

6.3                               Party C will be in strict compliance with this Agreement, actively perform its obligations hereunder, and refrain from any action or omission which may affect validity or enforceability of this Agreement.

 

7.                                      Breach Liability

 

7.1                               Subject to provisions under Section 4 of this Agreement, Party B and Party C shall jointly and severally indemnify and hold harmless Party A and any of its shareholders, directors, employees, affiliates, agents, successors and trustees from any claim, harm, expenses, indemnities, liabilities, fines or any other loss or damages arising from:

 

7.1.1                     any breach or failure to perform this Agreement by Party C and/or Party B; or

 

7.1.2                     any material neglect or willful misconduct, or any breach of applicable laws or regulations by Party C and/or Party B.

 

7.2                               Without prejudice to the indemnity liability provided under Section 7.1, Party A may require Party C and Party B to stop or prevent any breach of this Agreement, and/or require Party C and Party B to perform its obligations under this Agreement.

 

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8.                                      Confidentiality

 

Each of the Parties acknowledges and confirms that the existence and terms of this Agreement, as well as any oral or written information exchanged among the Parties in connection with preparation or performance of this Agreement, will be confidential information.  Each of Party C and party B will keep all confidential information in confidence and, without prior written consent from Party A, may not disclose any confidential information to any third party, unless such information (a) is in the public domain (not due to unauthorized disclosure by the receiving Party); (b) is required for disclosure by any applicable laws or regulations, rules of any exchange, or requirements or orders from any government authority or court having jurisdiction; or (c) is disclosed by Party C or Party B to any of its legal or financial advisors on as-needed basis, provided that such legal or financial advisor shall comply with the confidentiality obligations similar to this Section 8.  Disclosure of any confidential information by any person or entity engaged by Party C or Party B shall be deemed as disclosure of such information by Party C and/or Party B, and consequently Party C and/or Party B shall be held liable for beach of this Agreement.

 

9.                                      Other Agreements

 

9.1                               This Agreement shall be binding on and inure to the benefit of each of the Parties and their respective successors, heirs and permitted assigns.  Without prior written consent from Party A, Party C may not transfer any of its rights, interests or obligations under this Agreement.

 

9.2                               Party C hereby agrees that Party A may transfer any of its rights and obligations under this Agreement to any third party at its discretion with notice to Party C in writing but without consent from Party C.

 

9.3                               If any agreement between Party A and Party B terminates or expires, Party A will have the right to terminate all of the agreements between Party A and Party B including, among others, the Exclusive Consulting and Services Agreement.

 

9.4                               Considering the business relationship between Party A and Party B has been established through execution of the Exclusive Consulting and Services Agreement, and daily business activities of Party B will have a material impact on Party B’s ability to pay the payables to Party A, Party C agrees that subject to Section 1 of this Agreement, any dividend, distribution or other gain or interest received by it as shareholder of Party B will be immediately, unconditionally and freely paid or transferred to Party A, and provide any document or take any action necessary to accomplish such payment or transfer at the request of Party A.

 

9.5                               Party C will provide assistance sufficient for the Trustee to exercise any right authorized to it, including without limitation prompt signing any resolution of the shareholders or any other relevant legal document when it is necessary to do so (including required in connection with any approval, registration and filing from or with any government authority).  Party C hereby confirms that its covenants under Section 9.5 of this Agreement will not restrict its authorization of any right to the Trustee.

 

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10.                               Entire Agreements and Amendments

 

10.1                        This Agreement and all agreements and/or documents referred to or expressly included herein represent all agreements among the Parties regarding the subject matter hereof, and supersede all previous agreements, contracts, understandings and communications among all the Parties, oral or written, with respect to the subject matters of this Agreement.

 

10.2                        Any amendment of this Agreement will not be effective without agreement of the Parties in writing. Any amendment and supplement duly executed by the Parties shall be an integral part of and have the same effect with this Agreement.

 

11.                               Governing Law

 

This Agreement shall be governed by and construed in accordance with the PRC laws.

 

12.                               Dispute Resolution

 

12.1                        Any dispute arising from or in connection with this Agreement will be settled through negotiations and, if the negotiations fail, be submitted to Beijing Arbitration Commission (“BAC”) for arbitration in accordance with its rules then effect.  The arbitration shall take place in Beijing. The language of arbitration shall be in Chinese. The arbitrary award shall be final and binding upon each of the Parties.  This Section 12.1 will survive termination or expiration of this Agreement.

 

12.2                        each of the Parties shall continue to perform its obligations under this Agreement in good faith other than the matter under dispute.

 

13.                               Notice

 

Any and all notices given by any of the Parties regarding any of its rights or obligations under this Agreement shall be made in writing and delivered in person, by registered mail, postage prepaid mail, recognized courier service or facsimile to the following addresses.

 

If to Party A: Beijing Jingdong Century Trade Co., Ltd.

 

	
Address:
    	
Room B168, Building 2, 99 Kechuang 14   Street, Beijing Economic and Technological Development Zone, Beijing
    
	
Phone:
    	
010-58955008
    
	
Fax:
    	
010-58955990
    
	
Attention:
    	
LIU Qiangdong
    

 

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If to Party B: Beijing Jingdong 360 Degree E-Commerce Co., Ltd. with registered address at

 

	
Address:
    	
Room 222, Building C, No. 18 Kechuang   Street, Beijing Economic and Technological Development Zone, Beijing
    
	
Phone:
    	
010-58955008
    
	
Fax:
    	
010-58955990
    
	
Attention:
    	
LIU Qiangdong
    

 

If to Party C:

 

	
Richard Qiangdong Liu
    
	
Address:
    	
Room B168, Building 2, 99 Kechuang 14   Street, Beijing Economic and Technological Development Zone, Beijing
    
	
Phone: 
    	
010-58955008
    
	
Fax:
    	
010-58955990
    

 

	
Yayun Li
    
	
Address:
    	
Room B168, Building 2, 99 Kechuang 14   Street, Beijing Economic and Technological Development Zone, Beijing
    
	
Phone: 
    	
010-58955008
    
	
Fax:
    	
010-58955990
    

 

	
Pang Zhang
    
	
Address:
    	
Room B168, Building 2, 99 Kechuang 14   Street, Beijing Economic and Technological Development Zone, Beijing
    
	
Phone: 
    	
010-58955008
    
	
Fax:
    	
010-58955990
    

 

14.                               Effect, Term and Others

 

14.1                        Any written consent, proposal, appointment relating to Party A under this Agreement and any other decision having material effect upon daily business operations of Party B will be made by the board of directors/managing director of Party A.

 

14.2                        The term of this Agreement will commence as of the date hereof and, unless early terminated by Party A, expire upon dissolution of Party B under the PRC laws.  At the request of Party A, the Parties may extend the term of this Agreement prior to its expiration, and enter into separate business operation agreement or continue to perform this Agreement, in each case at the request of Party A.

 

14.3                        Neither Party B nor Party C may terminate this Agreement during the term hereof.  Party A shall have the right to terminate this Agreement at any time with written notice to Party B and Party C no less than thirty (30) days in advance.

 

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14.4                        It is confirmed by the Parties that this Agreement represent their fair and reasonable agreements made on the basis of equity and mutual benefits.   If any clause hereof is held invalid or unenforceable under applicable laws, such clause shall be deemed to have been deleted from this Agreement and invalid, and the remainder of this Agreement will continue to have effect and be deemed to have excluded such clause. The Parties will negotiate to replace the deleted clause with legal, valid one acceptable to each of the Parties.

 

14.5                        Any failure or delay on the part of any Party to exercise any rights, powers or privileges hereunder shall not operate as a waiver thereof. Any single or partial exercise of such rights, powers or privileges shall not preclude any further exercise of such rights, powers or privileges.

 

14.6                        This Agreement is in four originals with each Party holding one thereof.  Each of the originals has the same effect.

 

[Remaining intentionally left blank]

 

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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed on their behalf by a duly authorized representative as of the date first written above.

 

	
PARTY   A: BEIJING JINGDONG CENTURY TRADE CO., LTD.
    
	
 
    	
 
    
	
/s/ Beijing Jingdong Century   Trade Co., Ltd.
    	
 
    
	
(Seal of Beijing Jingdong   Century Trade Co., Ltd.)
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Richard Qiangdong Liu
    	
 
    
	
 
    	
 
    	
 
    
	
PARTY B: Beijing Jingdong 360 Degree E-Commerce   Co., Ltd.
    
	
 
    	
 
    
	
/s/ Beijing Jingdong 360 Degree E-Commerce Co., Ltd.
    	
 
    
	
(Seal of Beijing Jingdong 360 Degree E-Commerce   Co., Ltd.)
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Richard Qiang Dong Liu
    	
 
    
	
 
    	
 
    	
 
    
	
PARTY C:
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ LIU Qiangdong
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Yayun Li
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Pang Zhang
    	
 
    

 

9Exhibit 4.12

 

AMENDED AND RESTATED LOAN AGREEMENT

 

This AMENDED AND RESTATED LOAN AGREEMENT (this “Agreement”), dated June 15, 2016, is made in Beijing, the People’s Republic of China (“PRC”) by and among:

 

Lender:                                                   Beijing Jingdong Century Trade Co., Ltd., with registered address at Room B168, Building 2, No. 99, Kechuang 14 Street, Beijing Economic and Technological Development Zone, Beijing;

 

And

 

Borrowers:                               Jiangsu Yuanzhou E-Commerce Co., Ltd.

 

Richard Qiangdong Liu;

 

Pang Zhang; and

 

Yayun Li

 

(In this Agreement, the Lender and the Borrowers are individually referred to as a “Party”, collectively the “Parties”)

 

1.                                      Loan

 

1.1                               Subject to the terms and conditions of this Agreement, the Lender agrees to provide a loan at an aggregate amount of twenty two million (¥22,000,000) (the “Loan”) to the Borrowers, which Loan will be provided by Richard Qiangdong Liu, Pang Zhang and Yayun Li at the amount of RMB nine million and nine hundred thousand (¥9,900,000), RMB five million and five hundred thousand (¥ 5,500,000) and RMB six million and six hundred thousand (¥ 6,600,000), respectively.

 

1.2                               It is confirmed that the Lender has provided, and the Borrowers have received, the full amount of the Loan upon execution of this Agreement.

 

1.3                               The Borrowers agree to use the Loan to pay for their investment in the registered capital of the Borrower Company and, unless with prior written consent of the Lender, will not use the Loan for any other purpose, or transfer or pledge its shares or other interests in the Borrower Company to any third party.

 

1.4                               The Borrowers confirm that they have received the Loan upon execution of this Agreement and used the Loan to pay for their investment in the Registered Capital of the Borrower Company. The Borrowers may not withdraw such investment during the term of operations of the Borrower Company.

 

 

1.5                               It is confirmed that the Lender will not charge any interest upon the Loan, unless otherwise provided herein.

 

2.                                      Term of Loan

 

2.1                               The term of the Loan hereunder shall be ten (10) years from the date when the Borrowers actually receive all or any part of the Loan. Unless otherwise indicated by the Lender prior to its expiration, the term of the Loan will be automatically extended for another ten (10) years, and so forth thereafter.

 

2.2                               During the term or any extended term of the Loan, the Loan will become immediately due and payable by the Borrowers pursuant to the terms of this Agreement if:

 

(1)                                 The Borrowers die or become a person incapacitated or with limited capacity for civil acts;

 

(2)                                 The Borrowers resign or are dismissed by the Lender, the Borrower Company or any affiliate of the Lender;

 

(3)                                 The Borrowers commit a crime or are involved in a crime;

 

(4)                                 Any third party pursue any claim of more than RMB 100,000 against any of the Borrowers and the Lender has reasonable ground to believe that the Borrowers will not be capable to pay for such claim;

 

(5)                                 The Lender decides to perform the Exclusive Purchase Option Agreement (as defined below) when foreign enterprises are allowed to control or wholly own the Borrower Company under applicable PRC laws;

 

(6)                                 The Borrowers fail to comply with or perform any of their commitments or obligations under this Agreement (or any other agreement between them and the Lender), and further fails to remedy such breach within 30 business days upon its occurrence; and

 

(7)                                 This Agreement, the Equity Pledge Agreement, or the Exclusive Purchase Option Agreement is terminated or held invalid by any court for any reason other than the Lender’s.

 

3.                                      Repayment of Loan

 

3.1                               The Lender and the Borrowers agree and confirm that the Loan will be repaid in the following manner only: the Borrowers will transfer all of their equity interests in the Borrower Company to the Lender or any legal or natural person designated by the Lender pursuant to requirements from the Lender.

 

3.2                               The Lender and the Borrowers agree and confirm that to the extent permitted by the laws, the Lender has the right but no obligation to purchase or designate any legal or natural person designated by it to purchase all or any part of the equity interests in the Borrower Company from the Borrowers at the price set forth under the Exclusive Purchase Option Agreement.

 

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3.3                               It is agreed and confirmed by the Parties that the Borrowers shall be deemed to have fulfilled their repayment obligations hereunder only after both of the following conditions have been satisfied.

 

(1)                                 The Borrowers have transferred all of their equity interests in the Borrower Company to the Lender and/or their designated person; and

 

(2)                                 The Borrowers have repaid to the Lender all of the transfer proceeds or an amount equivalent to the maximum amount permitted by the laws.

 

3.4                               The Loan will be deemed as a zero interest loan if the price to transfer the equity interests in the Borrower Company to the Lender from the Borrowers concluded by the Parties under this Agreement any other related agreements is equal or less than the amount of the Loan. Under such circumstance, the Borrowers are not required to repay any remaining amount of and/or any interest upon the Loan; provided, however, that if the equity interest transfer price exceeds the amount of the Loan, the exceeding amount will be deemed as the interest upon the Loan (calculated by the highest interest permitted by the PRC laws) and financing cost thereof.

 

3.5                               Notwithstanding anything to the contrary, if the Borrower Company goes bankruptcy, dissolution or is ordered for closure during the term or extended term of this Agreement, and Borrowers will liquidate the Borrower Company according to laws and all of the proceeds from such liquidation will be used to repay the principal, interest (calculated by the highest interest permitted by the PRC laws) and financing cost of the Loan.

 

4.                                      Obligations of the Borrowers

 

4.1                               The Borrowers will repay the Loan according to the provisions of this Agreement and requirements from the Lender.

 

4.2                               The Borrowers will enter into an Amended and Restated Equity Pledge Agreement (the “Equity Pledge Agreement”) with the Lender and the Borrower Company, whereby the Borrowers agree to pledge all of their equity interests in the Borrower Company to the Lender.

 

4.3                               The Borrowers will enter into an Amended and Restated Exclusive Purchase Option Agreement (the “Exclusive Purchase Option Agreement”) with the Lender and the Borrower Company, whereby the Borrowers will to the extent permitted by the PRC laws grant an irrevocable and exclusive purchase option for the Lender to purchase all or any part of the equity interest in the Borrower Company from the Borrowers.

 

4.4                               The Borrowers will perform their obligations under this Agreement, the Equity Pledge Agreement and the Exclusive Purchase Option Agreement, and provide support for the Lender to complete all filings, approvals, authorizations, registration and other government procedures necessary to perform such agreements.

 

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4.5                               The Borrowers will sign an irrevocable power of attorney authorizing a person designated by the Lender to exercise on its behalf all of its rights as the shareholder of the Borrower Company.

 

5.                                      Representations and Warranties

 

5.1                               The Lender represents and warrants to the Borrowers that from the date of this Agreement until termination hereof:

 

(1)                                 It is a wholly foreign-owned company duly incorporated and validly existing under the laws of the PRC;

 

(2)                                 It has the power and receives all approvals and authorities necessary and appropriate to execute and perform this Agreement. Its execution and performance of this Agreement are in compliance with its articles of association or other organizational documents;

 

(3)                                 None of its execution or performance of this Agreement is in breach of any law, regulation, government approval, authorization, notice or any other government document, or any agreement between it and any third party or any covenant issued to any third party; and

 

(4)                                 This Agreement, once executed, becomes legal, valid and enforceable obligations upon the Lender.

 

5.2                               The Borrowers represent and warrant that from the date of this Agreement until termination hereof:

 

(1)                                 They are fully capable to conduct civil acts;

 

(2)                                 The Borrower Company is a limited liability company incorporated and validly existing under the PRC laws, and the Borrowers are the legal owners of the Borrower Equity;

 

(3)                                 None of their execution or performance of this Agreement is in breach of any law, regulation, government approval, authorization, notice or any other government document, or any agreement between them and any third party or any covenant issued to any third party;

 

(4)                                 This Agreement, once executed, becomes legal, valid and enforceable obligations upon the Borrowers;

 

(5)                                 They have paid the full investment relating to the Borrower Equity according to law, and received a verification report for such payment from a qualified accounting firm;

 

(6)                                 Except for those provided under the Equity Pledge Agreement, they create no mortgage, pledge or any other security upon the Borrower Equity, provides no offer to any third party to transfer the Borrower Equity, make no covenant regarding any offer to purchase the Borrower Equity from any third party, or enter into any agreement with any third party to transfer the Borrower Equity;

 

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(7)                                 There is no existing or potential dispute, suit, arbitration, administrative proceeding or any other legal proceeding in which the Borrowers and/or the Borrower Equity is involved; and

 

(8)                                 The Borrower Company has completed all government approvals, authorizations, licenses, registrations and filings necessary to conduct its businesses and own its assets.

 

6.                                      Covenants from the Borrowers

 

6.1                               The Borrowers covenant in their capacity of the shareholders of the Borrower Company that during the term of this Agreement they will procure the Borrower Company:

 

(1)                                 without prior written consent from the Lender, not to supplement, amend or modify its articles of association, or increase or decrease its registered capital, or change its capital structures of the Company;

 

(2)                                 to maintain its existence, prudently and effectively operate its businesses and deal with its affairs in line with fair financial and business standards and customs;

 

(3)                                 without prior written consent from the Lender, not to sell, transfer, pledge or otherwise dispose any legal or beneficial interest of any of its assets, businesses or income, or allow creation of any other security interests thereupon;

 

(4)                                 without prior written consent from the Lender, not to incur, inherit, guarantee or allow the existence of any debt, except for (i) any debt incurred during its ordinary course of business rather than from borrowing; and (ii) any debt which has been disclosed to and obtained the written consent from The Lender;

 

(5)                                 to always conduct its business operations in ordinary course to maintain the value of its assets;

 

(6)                                 without prior written consent from the Lender, not to enter into any material agreement other than those executed in its ordinary course of business (for purpose of this Section 6.1.6, a material agreement means any agreement with a contact value exceeding RMB one hundred thousand Yuan (RMB 100,000));

 

(7)                                 not to provide any loan or credit to any party without prior written consent from the Lender;

 

(8)                                 to provide any and all information regarding its operations and financial conditions at the request from the Lender;

 

(9)                                 to buy and maintain requisite insurance policies from an insurer acceptable to the Lender, the amount and type of which will be the same with those maintained by the companies having similar operations, properties or assets in the same region;

 

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(10)                          without prior written consent from the Lender, not to combine, merge with, acquire or make investment to any person;

 

(11)                          to immediately notify the Lender of any actual or potential litigation, arbitration or administrative proceeding regarding its assets, business and income;

 

(12)                          to execute any document, conduct any action, and make any claim or defense necessary or appropriate to maintain its ownership of all of its assets;

 

(13)                          without prior written consent from the Lender, not to distribute any dividend or bonus to any of its shareholders;

 

(14)                          to appoint any person nominated by the Lender or the parent of the Lender to its board at the request of the Lender; and

 

(15)                          to strictly comply with the provisions of the Exclusive Purchase Option Agreement, and not to make any act or omission which may affect its validity and enforceability.

 

6.2                               The Borrowers covenant during the term of this Agreement:

 

(1)                                 except those provided under the Equity Pledge Agreement and without prior written consent from the Lender, not to sell, transfer, pledge or otherwise dispose any legal or beneficial interest of the Borrower Equity, or allow creation of any other security interests thereupon;

 

(2)                                 to procure the shareholders of the Borrower Company not to approve any sale, transfer, pledge or otherwise disposal of any legal or beneficial interest of the Borrower Equity, or creation of any other security interests thereupon without prior written consent from the Lender, except to the Lender or its designated person;

 

(3)                                 to procure the shareholders of the Borrower Company not to approve its merger or association with, or acquisition of or investment in any person without prior written consent from the Lender;

 

(4)                                 to immediately notify the Lender of any actual or potential litigation, arbitration or administrative proceeding regarding the Borrower Equity;

 

(5)                                 to execute any document, conduct any action, and make any claim or defense necessary or appropriate to maintain its ownership of the Borrower Equity;

 

(6)                                 not to make any act and/or omission which may affect any asset, business or liability of the Borrower Company without prior written consent from the Lender;

 

(7)                                 to appoint any person nominated by the Lender or the parent of the Lender to the board of the Borrower Company at the request of the Lender;

 

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(8)                                 to the extent permitted under the PRC laws and at the request of the Lender at any time, to transfer unconditionally and immediately all of the equity interests owned by the Borrowers to the Lender or any person designated by it, and procure any other shareholder of the Borrower Company to waive the right of first refusal regarding such equity interests;

 

(9)                                 to the extent permitted under the PRC laws and at the request of the Lender at any time, to procure any other shareholder of the Borrower Company to transfer unconditionally and immediately all of the equity interests owned by such shareholder to the Lender or any person designated by it, and the Borrowers hereby waive their right of first refusal regarding such equity interests;

 

(10)                          if the Lender purchases the Borrower Equity from the Borrowers pursuant to the Exclusive Purchase Option Agreement, to use the price of such purchase to repay the Loan to the Lender on priority; and

 

(11)                          to strictly comply with the provisions of this Agreement, the Equity Pledge Agreement and the Exclusive Purchase Option Agreement, perform its obligations under each of such agreements, and not to make any act or omission which may affect the validity and enforceability of each of such agreements.

 

7.                                      Liabilities for Breach of Contract

 

7.1                               If any party (“Defaulting Party”) breaches any provision of this Agreement, which causes damage to the other party (“Non-defaulting Party”), the Non-defaulting Party could notify the Defaulting Party in writing and request it to rectify and correct such breach of contract; if the Defaulting Party fails to take any action satisfactory to the Non-defaulting Party to rectify and correct such breach within fifteen (15) working days upon the issuance of the written notice by the Non-defaulting Party, the Non-defaulting Party may immediately take the actions pursuant to this Agreement or take other remedies in accordance with laws.

 

7.2                               If the Borrowers fail to repay the Loan pursuant to the terms under this Agreement, they will be liable for a penalty interest accrued upon the amount due and payable at a daily interest rate of 0.02% until the Loan as well as any penalty interest and any other amount accrued thereupon are fully repaid by the Borrowers.

 

8.                                      Notices

 

Notices or other communications required to be given by any Party pursuant to this Agreement shall be made in writing and delivered personally or sent by mail or facsimile transmission to the addresses of the other Parties set forth below or other designated addresses notified by such other Parties to such Party from time to time. The date when the notice is deemed to be duly served shall be determined as the follows: (a) a notice delivered personally is deemed duly served upon the delivery; (b) a notice sent by mail is deemed duly served on the seventh (7th) day after the date when the air registered mail with postage prepaid has been sent out (as is shown on the postmark), or the fourth (4th) day after the delivery date to the internationally recognized courier service agency; and (c) a notice sent by facsimile transmission is deemed duly served upon the receipt time as is shown on the transmission confirmation of relevant documents.

 

7

 

If to the Lender: Beijing Jingdong Century Trade Co., Ltd.

 

	
Address:
    	
Room B168, Building 2,   No. 99, Kechuang 14 Street,
    
	
 
    	
Beijing Economic and   Technological Development
    
	
 
    	
Zone, Beijing
    
	
Phone:
    	
010-58955008
    
	
Fax:
    	
010-58955990
    
	
Attention:
    	
Richard Qiangdong Liu
    

 

If to the Borrowers:

 

	
Richard Qiangdong Liu
    
	
Address:
    	
Room B168, Building 2,   No. 99, Kechuang 14 Street,
    
	
 
    	
Beijing Economic and   Technological Development Zone,
    
	
 
    	
Beijing
    
	
Phone:
    	
010-58955008
    
	
Fax:
    	
010-58955990
    
	
 
    	
 
    
	
Pang Zhang
    	
 
    
	
Address:
    	
Room B168, Building 2,   No. 99, Kechuang 14 Street,
    
	
 
    	
Beijing Economic and   Technological Development Zone,
    
	
 
    	
Beijing
    
	
Phone:
    	
010-58955008
    
	
Fax:
    	
010-58955990
    
	
 
    	
 
    
	
Yayun Li
    	
 
    
	
Address:
    	
Room B168, Building 2,   No. 99, Kechuang 14 Street,
    
	
 
    	
Beijing Economic and   Technological Development Zone,
    
	
 
    	
Beijing
    
	
Phone:
    	
010-58955008
    
	
Fax:
    	
010-58955990
    

 

9.                                      Confidentiality

 

All Parties acknowledge and confirm that any oral or written materials exchanged by and between the Parties in connection with this Agreement are confidential. All Parties shall keep in confidence all such information and not disclose it to any third party without prior written consent from other Parties unless: (a) such information is known or will be known by the public (except by disclosure of the receiving party without authorization); (b) such information is required to be disclosed in accordance with applicable laws or rules or regulations; or (c) if any information is required to be disclosed by any party to its legal or financial advisor for the purpose of the transaction of this Agreement, such legal or financial advisor shall also comply with the confidentiality obligation similar to that stated hereof. Any disclosure by any employee or agency engaged by any Party shall be deemed the disclosure of such Party and such Party shall assume the liabilities for its breach of contract pursuant to this Agreement. This Article shall survive expiration or termination of this Agreement.

 

8

 

10.                               Applicable Law and Dispute Resolution

 

10.1                        The formation, validity, performance and interpretation of this Agreement and the disputes resolution under this Agreement shall be governed by the PRC laws.

 

10.2                        The Parties shall strive to settle any dispute arising from or in connection with this Agreement through friendly consultation. In case no settlement can be reached through consultation within thirty (30) days after the request for consultation is made by any Party, any Party can submit such matter to China International Economic and Trade Arbitration Commission for arbitration in accordance with its then effective rules. The arbitration shall take place in Beijing. The arbitration award shall be final and binding upon all the Parties.

 

11.                               Miscellaneous

 

11.1                        The headings contained in this Agreement are for the convenience of reference only and shall not be used to interpret, explain or otherwise affect the meaning of the provisions of this Agreement.

 

11.2                        This Agreement shall be effective as of the date of its execution. The Parties agree and confirm that the effect of this Agreement shall retrospect to June 15, 2016. Once effective, this Agreement will expire until the Parties have performed their respective obligations under this Agreement.

 

11.3                        The Parties agree to promptly execute any document and take any other action reasonably necessary or advisable to perform provisions and purpose of this Agreement.

 

11.4                        The Parties confirm that this Agreement shall, upon its effectiveness, constitute the entire agreement and common understanding of the Parties with respect to the subject matters herein and fully supersede all prior verbal and/or written agreements and understandings with respect to the subject matters herein.

 

11.5                        The Parties may amend and supplement this Agreement in writing. Any amendment and/or supplement to this Agreement by the Parties is an integral part of and has the same effect with this Agreement.

 

11.6                        This Agreement shall be binding upon and for the benefit of all the Parties hereto and their respective inheritors, successors and the permitted assigns.

 

11.7                        Any Party’s failure to exercise the rights under this Agreement in time shall not be deemed as its waiver of such rights and would not affect its future exercise of such rights.

 

11.8                        If any provision of this Agreement is held void, invalid or unenforceable by a court of competent jurisdiction, governmental agency or arbitration authority, the validity, legality and enforceability of the other provisions hereof shall not be affected or impaired in any way. The Parties shall cease performing such void, invalid or unenforceable provisions and revise such void, invalid or unenforceable provisions only to the extent closest to the original intention thereof to recover its validity or enforceability for such specific facts and circumstances.

 

9

 

11.9                        Unless with prior written consent from the Lender, the Borrowers may not assign any of their rights and obligations under this Agreement to any third party.

 

11.10                 This Agreement is made in four (4) originals with each Party holding one (1) original. Each original has the same effect.

 

(No text below)

 

10

 

(Signature Page)

 

IN WITNESS THEREOF, each Party has signed or caused its legal representative to sign this Agreement as of the date first written above.

 

	
Party A: Beijing Jingdong   Century Trade Co., Ltd.
    
	
 
    
	
/s/ Beijing Jingdong Century   Trade Co., Ltd.
    	
 
    
	
(Seal of Beijing Jingdong   Century Trade Co., Ltd.)
    

 

	
By:
    	
/s/ Richard Qiangdong Liu
    	
 
    
	
 
    
	
Party B:
    
	
 
    
	
Richard Qiangdong Liu
    
	
 
    

 

	
By:
    	
/s/ Richard Qiangdong Liu
    	
 
    
	
 
    
	
Pang Zhang
    
	
 
    

 

	
By:
    	
/s/ Pang Zhang
    	
 
    
	
 
    
	
Yayun Li
    
	
 
    
	
By:
    	
/s/ Yayun Li
    	
 
    
	
 
    

 

11

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