Document:

Exhibit 10.8

 

Exclusive Assets Option Agreement

 

This Exclusive Assets Option Agreement (this “Contract”) was concluded and signed in China on October 31, 2018 by and between:

 

Party A: Beijing Yueke Technology Co., Ltd.

 

Address: Room 115, Floor 1, Building 26, No.44 North Third Ring Middle Road, Haidian District, Beijing

 

Party B: Beijing Wuxin Technology Co., Ltd.

 

Address: Room 207-056, Floor 2, Building 23, Yard 8, Dongbeiwang West Road, Haidian District, Beijing

 

In this Contract, Party A and Party B shall hereinafter be referred to individually as a “Party” and collectively the “Parties”.

 

Now therefore, the Parties have reached agreement as follows through consultation:

 

1.                     Transfer of Underlying Assets

 

1.1                                  Granting of Rights

 

Party B hereby irrevocably grants to Party A an irrevocable exclusive option to purchase from Party B or to designate one or more persons (each, a “Designated Person”) to purchase from Party B all intellectual properties and all other assets owned by Party B and its holding subsidiaries (including but not limited to Shenzhen Wuxin Technology Co., Ltd.) now or in the future (hereinafter referred to as the “Underlying Assets”) from time to time, in each case, in accordance with the steps determined by Party A at its sole discretion and at the price set forth in Section 1.3 hereof, and to the extent permitted by the Chinese law (the “Option to Purchase Underlying Assets”). Except for Party A and the Designated Person(s), no third party shall enjoy the Option to Purchase Underlying Assets. “Person” as defined in this Paragraph and this Contract means any individual, company, joint venture, partnership, enterprise, trust or non-corporate organization.

 

For the avoidance of doubt, the terms of this Contract shall apply to the holding subsidiaries of Party B (including without limitations Shenzhen Wuxin Technology Co., Ltd.).

 

1.2                                  Steps for Exercising the Option

 

Party A’s exercise of its Option to Purchase Underlying Assets shall be subject to compliance with the provisions of Chinese laws and regulations. When exercising the Option to Purchase Underlying Assets, Party A shall send a written notice (the “Underlying Assets Purchase Notice”) to Party B, specifying: (a) Party A’s decision to exercise the Option to Purchase Underlying Assets; (b) the Underlying Assets to be purchased by Party A from Party B (the “Purchased Underlying Assets”); and (c) the date of purchase/transfer of the Purchased Underlying Assets.

 

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1.3                                  Transfer Price of Underlying Assets

 

Subject to the applicable laws, the transfer price of the Purchased Underlying Assets shall be the lowest price permitted by the Chinese laws when the Purchased Underlying Assets are transferred. By mutual consent, the transfer price of Underlying Assets hereunder may be offset against the relevant amount payable by Party B to Party A.

 

1.4                               Transfer of the Purchased Underlying Assets

 

Each time Party A exercises the Option to Purchase Underlying Assets:

 

(1)          If required by Party A, Party B shall convene a shareholders’ meeting in a timely manner. At such meeting, a resolution approving the transfer of the Underlying Assets by Party B to Party A and/or the Designated Person(s) shall be adopted;

 

(2)          Party B shall enter into an underlying assets transfer contract (the “Underlying Assets Transfer Contract”) with Party A or the Designated Person(s) (as the case may be) in accordance with the provisions of this Contract and the Underlying Assets Purchase Notice.

 

2.                     Party B’s Undertakings

 

(1)           Without Party A’s prior written consent, Party B shall not sell, transfer, mortgage, permit others to use or otherwise dispose of any Underlying Asset held by it at any time from the date of signing this Contract;

 

(2)          Party B shall cause its board of shareholders, without Party A’s prior written consent, not to approve to sell, transfer, mortgage, permit others to use or otherwise dispose of any Underlying Asset held by it;

 

(3)          Party B shall immediately notify Party A of any litigation, arbitration or administrative proceeding which has arisen or which is likely to arise with respect to the Underlying Assets;

 

(4)          Party B shall cause its board of shareholders to vote for the transfer of the Underlying Assets under this Contract at the request of Party A;

 

(5)          To maintain its ownership of the Underlying Assets, Party B shall sign such documents, take such actions, and make such claims or defense against all claims as necessary or desirable;

 

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(6)          At Party A’s request from time to time, Party B shall immediately and unconditionally transfer its Underlying Assets to Party A or the Designated Person(s);

 

(7)          Party B shall strictly comply with the provisions of this Contract and other contracts entered into by the Parties, perform its obligations under this Contract and such other contracts, and refrain from any act/omission which may affect validity and enforceability hereof and thereof.

 

3.                     Representations and Warranties

 

3.1               Party A’s Representations and Warranties

 

Party A hereby represents and warrants to Party B on the date of signing this Contract and on each transfer date, as follows:

 

(1)                                Party A is a company duly registered and validly existing under the Chinese laws;

 

(2)                                The execution and performance of this Contract by Party A is within the scope of its corporate power and its business operation; Party A has taken the necessary corporate actions to acquire duly authorization and obtained the consent and approval of third parties and government authorities; and Party A shall not violate any legal and contractual restrictions that have a binding force or influence on Party A;

 

(3)                                This Contract upon its execution constitutes legal, valid and binding obligations of Party A, enforceable in accordance with the terms of this Contract.

 

3.2               Party B’s Representations and Warranties

 

Party B hereby represents and warrants to Party A on the date of signing this Contract and on each transfer date, as follows:

 

(1)                                Party B has exclusive ownership of the Underlying Assets and the use of the Underlying Assets will not infringe the rights of any third party. In addition, there is no litigation or other disputes relating to the Underlying Assets;

 

(2)                                The execution and performance of this Contract by Party B is within the scope of its power and its business operation; Party B has taken the necessary corporate actions to acquire duly authorization and obtained the consent and approval of third parties and government authorities; and Party B will not violate any legal and contractual restrictions that have a binding force or influence on Party B;

 

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(3)                                This Contract upon its execution constitutes legal, valid and binding obligations of Party B, enforceable in accordance with the terms of this Contract;

 

(4)                                Party B has the authority and capacity to execute and deliver this Contract and any Underlying Assets Transfer Contract to which it is a Party concluded and signed for each transfer of the Purchased Underlying Assets in accordance herewith and to perform its obligations under this Contract and any Underlying Assets Transfer Contract. This Contract and the Underlying Assets Transfer Contracts to which it is a Party upon execution constitute or will constitute legal, valid and binding obligations of Party B, enforceable in accordance with their terms;

 

(5)                                Neither the execution and delivery of this Contract or any Underlying Assets Transfer Contract nor the performance of its obligations under this Contract or any Underlying Assets Transfer Contract will: (i) result in any breach of any applicable law in China; (ii) conflict with Party B’s articles of association or other organizational documents; (iii) cause any breach of or constitute any default under any contract or instrument to which it is a party or to which it is bound; (iv) violate any condition under which any permit or license is granted to it and (or) continues to be in effect; or (v) lead to suspension of or revocation of or imposition of additional conditions on any permit or license granted to it.

 

4.                     Effectiveness and Term

 

This Contract shall come into effect on the date of being signed by the Parties, with the valid term of ten (10) years. Party A has the option to renew this Contract.

 

5.                     Governing Law and Dispute Settlement

 

5.1                    Governing Law

 

The execution, validity, interpretation and performance of this Contract and the settlement of disputes under this Contract shall be governed by the Chinese laws.

 

5.2                    Dispute Settlement

 

Any dispute arising from the interpretation and performance of this Contract shall first be settled by the Parties through consultation in good faith. If the Parties fail to reach an agreement on the settlement of the dispute within thirty (30) days after either Party issues a written notice requiring the other Party to settle the dispute through consultation, either Party may submit the dispute to China International Economic and Trade Arbitration Commission (CIETAC) for arbitration which shall be conducted in accordance with the CIETAC’s arbitration rules in effect at the time of applying for arbitration. The arbitration shall take place in Beijing. The arbitral award shall be final and binding upon the Parties.

 

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6.                     Notice

 

Unless there is a written notice to change the following address, all notices under this Contract shall be delivered by hand, fax or registered mail to the address of such Party set forth below. If a notice is sent by registered mail, the date of receipt of the registered mail shall be deemed to be the date of service; if it is sent by hand or by fax, the date of delivery shall be deemed to be the date of service. If sent by fax, the original shall be sent to the following address by registered mail or by personal delivery immediately after being sent.

 

Party A: Beijing Yueke Technology Co., Ltd.

Address: Room 115, Floor 1, Building 26, No.44 North Third Ring Middle Road, Haidian District, Beijing

Attention: WANG Ying

Telephone: [***]

 

Party B: Beijing Wuxin Technology Co., Ltd.

Address: Room 207-056, Floor 2, Building 23, Yard 8, Dongbeiwang West Road, Haidian District, Beijing

Attention: WANG Ying

Telephone: [***]

 

7.                     Confidentiality

 

The Parties acknowledge that any oral or written information exchanged in connection with this Contract is confidential. The Parties shall keep confidential all such information and not disclose any such information to any third party without the written consent of the other Party, except for the information that (a) is or becomes generally available to the public (other than as a result of any disclosure by the recipient to the public); (b) is required to be disclosed by the applicable laws or regulations; or (c) is required to be disclosed by either Party to its legal counsels or financial advisers in connection with the transactions contemplated hereunder, provided that such legal counsels or financial advisers shall be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the employees or agencies engaged by a Party shall be deemed as disclosure of such confidential information by such Party, and such Party shall be liable for breach of this Contract by the aforesaid employees or agencies. This Section shall survive termination of this Contract for any reason whatsoever.

 

8.                     Further Assurance

 

The Parties agree to promptly execute such documents as may reasonably be necessary or beneficial for the performance of the provisions and purposes of this Contract and to take such further actions as may reasonably be necessary or beneficial for the performance of the provisions and purposes of this Contract.

 

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9.                     Miscellaneous

 

9.1                               Amendments, Modifications and Supplements

 

Any amendment, modification or supplement to this Contract shall be agreed in writing by the Parties.

 

9.2                              Compliance with Laws and Regulations

 

The Parties shall comply with and ensure that their operations are in full compliance with all laws and regulations officially published and publicly available in China.

 

9.3                              Entire Contract

 

Except as amended, supplemented or modified in writing after the execution hereof, this Contract shall constitute the entire contract between the Parties hereto with respect to the subject matter hereof and supersede all prior oral or written negotiations, representations and contracts with respect to the subject matter hereof.

 

9.4                              Headings

 

The headings in this Contract are inserted for convenience only, which shall not be used to interpret, illustrate or otherwise affect the meaning of the provisions of this Contract.

 

9.5                              Language

 

This Contract is made in Chinese in duplicate.

 

9.6                               Severability

 

If one or more provisions of this Contract are held invalid, illegal or unenforceable in any respect pursuant to any law or regulation, the validity, legality or enforceability of the remaining provisions of this Contract shall not in any way be affected or impaired. The Parties shall, through consultations in good faith, strive to replace such invalid, illegal or unenforceable provisions with effective provisions, 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.

 

9.7                               Successors

 

This Contract shall be binding upon and inure to the benefit of the respective successors and permitted assigns of the Parties.

 

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9.8                               Survival

 

(a)                       Any obligation arising out of or becoming due under this Contract prior to expiry or early termination of this Contract shall survive the expiry or early termination of this Contract.

 

(b)                       The provisions under Sections 5, 7 and 9.8 hereof shall survive the termination of this Contract.

 

9.9                               Waiver

 

Either Party may waive the terms and conditions of this Contract, provided that such waiver is made in writing and signed by the Parties. A waiver by either Party in respect of a default by the other Party under certain circumstances shall not be deemed to be a waiver by such Party in respect of a similar default by the other Party under other circumstances.

 

IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be executed as of the date first above written.

 

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No text below and the Signature Page of the Exclusive Assets Option Agreement

 

	
Party A: Beijing Yueke   Technology Co., Ltd. (Seal)
    	
 
    
	
[Company seal is affixed]
    	
 
    
	
Legal Representative:
    	
/s/ WANG Ying
    	
 
    
	
 
    	
 
    
	
Party B: Beijing Wuxin Technology Co., Ltd. (Seal)
    	
 
    
	
[Company seal is affixed]
    	
 
    
	
Legal Representative:
    	
/s/ WANG YingExhibit 10.9

 

Strictly Confidential

 

THE SYMBOL “[***]” DENOTES PLACES WHERE CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (i) NOT MATERIAL, AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

Exclusive Smoore Factory Cooperation Agreement

 

Signing Place: Shenzhen, Guangdong

 

Signing Date: October 24, 2019

 

Party A1:  Beijing Wuxin Technology Co., Ltd.

 

Legal Representative: WANG Ying

 

Address: Room 501-A2, Floor 5, No.20 Gongti East Road, Chaoyang District, Beijing

 

Party A2: Shenzhen Wuxin Technology Co., Ltd.

 

Legal Representative: WANG Ying

 

Address: B402, Phase II, Boton Science Park, No.1044 Chaguang Road, Shuguang Community, Xili Street, Nanshan District, Shenzhen

 

Party A3: Ningbo Wuxin Information Technology Co., Ltd.

 

Legal Representative: WANG Ying

 

Address: Room 555, Office Building 19, No.1 Meishan Saltworks, Beilun District, Ningbo

 

Party A4: Shenzhen Wuxin Brothers Technology Co., Ltd. (in Establishing)

 

Party A5: Shenzhen Wuxin Brothers Technology Co., Ltd. Shiyan Branch (in Establishing)

 

(Party A1, Party A2, Party A3, Party A4 and Party A5 are hereinafter collectively referred to as “Party A”)

 

Party B1: Shenzhen Smoore Technology Co., Ltd.

 

Legal Representative: CHEN Zhiping

 

Address: No.16 Dongcai Industrial Zone, Gushu Community, Bao’an District, Shenzhen

 

Party B2: Shenzhen Smoore Brothers Technology Co., Ltd.

 

Legal Representative: BU Zhiqiang

 

Address: Building 1, No.1 Datianyang South 2 Road, Hongxing Community, Songgang Street, Bao’an District, Shenzhen

 

Party B3: Shenzhen Smoore Brothers Technology Co., Ltd. Shiyan Branch

 

Legal Representative: BU Zhiqiang

 

Address:  Floor 1, Building 2, Wangda Industrial Park, West of Songbai Highway, Tangtou Community, Shiyan Street, Bao’an District, Shenzhen

 

(Party B1, Party B2 and Party B3 are hereinafter collectively referred to as “Party B”)

 

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Based on the principles of fairness, justice and mutual benefit, the Parties enter into this Agreement through consultation in order to establish a long-term, stable and close cooperative partnership. The specific terms of this Agreement are as follows:

 

	
No.
    	
 
    	
Content
    
	
1.
    	
 
    	
Party B has leased from the owner the electronic   atomizer production factory located at Qinshi Building, Wangda Industrial   Zone, Tangtou Village, Shiyan Street, Bao’an District, Shenzhen (“Shiyan   Factory”). The factory has skilled workers and management team that can meet   the production requirements and operate at full capacity. The factory has   been put into production and the production is in good condition. With the   prior consent of the owner of Shiyan Factory, Party B agrees that Party A   will lease the factory directly from the owner to meet the production needs   of Party A’s electronic atomizers. In order to reflect the spirit of friendly   cooperation between the Parties, Party B has implemented the new cooperation   mode between the Parties through the price settlement method and unit price   mutually agreed upon by the Parties from October, 2019.
    
	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Party A agrees to pay Party B a lump sum of RMB[***]   (amount in words: RMB[***]) (“Party A’s One-time Fixed Investment”). The   money will be used to purchase all the equipment involved in the production   of electronic atomizer products at Shiyan Factory, and Party B will pay all   the decoration expenses. Party A shall remit the above sum to the bank   account designated by Party B in a lump sum before November 5, 2019.

 

Thereinto, Party A shall bear the decoration amount   of RMB[***] (tax inclusive) and the equipment amount of RMB[***] (tax   inclusive). Please refer to the Attachment hereto for the corresponding lists   of the above amounts, calculation method and the amounts exclusive of tax.
    
	
 
    	
 
    	
 
    
	
3.
    	
 
    	
The Parties agree that: Party B will issue VAT   special invoices with a tax rate of [***]% for machinery and equipment based   on the actual situation. Party B will issue VAT special invoices with a tax   rate of [***]% for decoration (subject to the invoices approved by the tax   authority) based on the actual situation (The specific payable amount shall   be subject to the tax rate recognized by the tax authority and the qualified   invoices that can be issued (price with tax included). If the tax rate is   lower than [***]%, the invoice and settlement amount shall be determined in   principle that the amount excluding tax remains unchanged). If Party B is   unable to issue the invoices for decoration, both Parties shall enter into a   supplementary agreement through friendly negotiation.

 

The Parties agree and confirm that, in order to   facilitate Party A’s compliance with its financial and audit requirements,   formal handover and invoicing of the above equipment and decoration shall   begin immediately after Party A5 (Party A’s project company) has been   successfully registered and qualified as a general taxpayer. All risks and   rewards of the above-mentioned equipment and decoration will then be transferred.   Party A shall complete the above matters as soon as possible so that Party B   can issue relevant invoices.

 

The above matters at the execution level of both   Parties shall be post-contract obligations, which shall not affect the timely   performance of other rights and obligations under this Agreement.
    

 

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4.
    	
 
    	
The term of cooperation under this Agreement shall   be from the date of this Agreement until April 30, 2023 (or if earlier,   the date of the owner’s unilateral resumption of the factory). Within 6   months prior to the termination of this Agreement, Party A and Party B may   negotiate on matters concerning the continuation of cooperation and enter   into a separate written agreement for confirmation.
    
	
 
    	
 
    	
 
    
	
5.
    	
 
    	
On the premise of meeting all order requirements,   product specifications and quality requirements of Party A, Party A warrants   that Party B shall be the only exclusive supplier for the production and   manufacture of its ceramic heating atomizers during the aforementioned period   of cooperation.

 

Party B warrants that Shiyan Factory shall only   produce Party A’s products and guarantees that the production capacity of the   factory shall be optimized and effectively utilized. However, in the event of   force majeure, Party B may, upon prior written notice and with consent of the   senior management of both Parties through friendly consultation, use the   spare capacity to produce other products in accordance with the agreed scope   to maintain labor relationship with skilled workers and perform its   employment obligations. In order to meet the order requirements of Party A,   Party B guarantees that the monthly production capacity of Shiyan Factory   will be no less than [***] million cartomizers.
    
	
 
    	
 
    	
 
    
	
6.
    	
 
    	
In order to ensure normal production and meet the   order requirements of Party A, Party A shall, with the prior consent of the   owner, directly lease from the owner the premises of Shiyan Factory   (including the in-factory dormitory) as from November 1, 2019. In addition,   the expenses for materials, labor and utilities shall be borne by Party B.   Other lease-related issues shall be subject to the lease contract by and   between Party A and the owner.

 

The transition period shall be from the date of   signing of this Agreement to October 31, 2019. The Parties agree to   enter into a tripartite agreement with the owner to enable Party A5 to   register the second floor as its registered address and Party B3 to continue   to maintain the first floor of the premises as its registered address.

 

Party A may set up a wholly-owned subsidiary at   Shiyan Factory as Party A5, which shall assume the same rights and   obligations in accordance with this Agreement.

 

During the period of cooperation, Party B shall bear   the daily maintenance expenses of all the equipment in the normal operation   of Shiyan Factory. If it is necessary to replace or improve the equipment,   Party B shall be responsible for replacing or improving the equipment,   provided that Party A shall pay the expenses incurred by Party B in such   process.
    

 

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7.
    	
 
    	
Both Parties agree that the purchase price of the   products during the cooperation period will be based on the operation mode of   this Agreement and determined separately by a written supplementary agreement   in the principle of mutual benefit. In case of major changes in the market   situation during the cooperation period, both Parties shall make   corresponding adjustments through consultation.
    
	
 
    	
 
    	
 
    
	
8.
    	
 
    	
In order to carry out close cooperation and achieve   effective production and marketing coordination, the designated personnel of   Party A shall prepare and update the monthly demand information for the next   3 months in advance and send it to the designated personnel of Party B in   writing, so as to facilitate Party B’s arrangement of the production plan. If   Party B has to crash the schedule or be in idle due to Party A’s temporary   change of monthly demand plan, Party A shall bear the waste of materials and   labor losses caused thereby.
    
	
 
    	
 
    	
 
    
	
9.
    	
 
    	
Both Parties agree that the ownership and other   risks of the products required by Party A’s orders will be transferred to   Party A immediately after Party B delivers the products to the finished   product warehouse designated by both Parties at Shiyan Factory. After that,   Party A shall be responsible for the distribution and transportation of   relevant goods.
    
	
 
    	
 
    	
 
    
	
10.
    	
 
    	
Other than the relevant intellectual properties that   Party B authorizes Party A to use for the purpose of this Agreement, the   Parties confirm that neither Party shall, as a result of this Agreement,   acquire any intellectual property or other property rights belonging to the   other Party in connection with the contents hereof.

 

Party A and Party B guarantee that they will not   infringe the intellectual properties or other property rights of the other   Party or any third party during the performance of this Agreement. Otherwise,   such Party shall compensate the other Party or any third party for all losses   caused thereby.

 

If either Party intends to use the trademark, image   or materials of the other Party for publicity and promotion, prior written   consent shall be obtained from the other Party.
    
	
 
    	
 
    	
 
    
	
11.
    	
 
    	
Each Party shall keep strictly confidential all   information obtained at any time and in any way from the other Party   (including but not limited to business materials, trade secrets, business   models, design ideas, customer lists, financial information) and information   related to this Agreement. The foregoing information belongs to the property   of the other Party and shall be returned or deleted upon the request of the   other Party.

 

Without the prior written consent of the other   Party, neither Party shall in any way disclose the above confidential   information to any third party or use the above confidential information for   purposes other than this Agreement. Otherwise, all losses caused thereby,   including but not limited to claims, litigation and arbitration fees,   attorney’s fees, investigation and evidence collection fees incurred by the   other Party shall be borne by the disclosing Party. The obligations of the   Parties under this Section shall survive the termination or expiration   of this Agreement.
    

 

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12.
    	
 
    	
After this Agreement comes into effect, except as   otherwise provided in laws, regulations and other normative documents or   otherwise agreed herein, neither Party shall alter, terminate or rescind this   Agreement without the written consensus of both Parties.

 

Party A and Party B shall abide by the provisions of   this Agreement. If either Party breaches this Agreement, the non-default   Party shall have the right to require the default Party to bear the   corresponding liability for damages caused to the non-default Party. Party A   and Party B agree that, with respect to the following agreement, in case of   breach of contract, the liquidated damages shall be calculated at [***]% of   the actual transaction amount of the Parties for [***] months prior to the   occurrence of the breach, but the maximum amount shall be RMB[***]:

 

(I)           Party A, in violation   of the exclusive purchase provisions of this Agreement and without the prior   written consent of Party B’s authorized representative, purchases from any   third party and/or entrusts a third party to produce ceramic heating atomizer   components to be utilized in ceramic electric atomizer products for external   sales by Party A. Notwithstanding the foregoing, in the event that Party B is   unable to meet Party A’s order requirements, product specifications or   quality requirements or there is any other material production or capacity   issue (including but not limited to investigation by the government,   compliance issues, integrity issues, quality recall problems, infringement of   intellectual properties, and product liability litigation), the senior   management of both Parties shall, prior to the occurrence of breach,   determine the settlement and solution through friendly negotiation.

 

(II)        Without the prior   written consent of Party A’s authorized representative, Party B arranges the   production of other customer orders at Shiyan Factory.

 

(III)      Either Party breaches the   confidentiality obligation hereunder.

 

(IV)      Either Party unilaterally   changes the mode of production, manufacturing and service cooperation   hereunder.

 

(V)         Either Party   unilaterally terminates this Agreement early during the term of cooperation.
    
	
 
    	
 
    	
 
    
	
13.
    	
 
    	
The execution, performance, termination and dispute   settlement of this Agreement shall be governed by and construed in accordance   with the laws of the People’s Republic of China.

 

Any dispute arising from or in connection with the   performance of this Agreement shall be settled by the Parties through   consultation. If no agreement can be reached through consultation, either Party   may submit the dispute to the Shenzhen Court of International Arbitration for   arbitration. The losing Party shall bear reasonable costs for the settlement   of the dispute, including but not limited to arbitration fees and attorney’s   fees. The arbitration shall take place in Shenzhen. The Parties agree that   the arbitration process shall be kept strictly confidential.
    

 

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14.
    	
 
    	
All notices, requests, inquiries and other   communications shall be sent in writing in English or in Chinese by mail or   letter to the addresses set forth below. The contact persons and contact   information of both Parties are as follows:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Party A’s Contact Person: WEN Yilong
    	
Party B’s Contact Person: HAN Jiyun
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address: [***]
    	
Address: [***]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Telephone: [***]
    	
Telephone: [***]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Email: [***]
    	
Email: [***]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Any information or document sent by a Party shall be   deemed to have been served as follows:

 

(1)          If   it is sent by hand, on the date of receiving the service return receipt;

 

(2)          If   it is sent by courier, on the date of delivery or on the third working day   after delivery to the courier (whichever is earlier);

 

(3)          If   sent by E-mail, SMS or instant messenger, when successfully sent.

 

In order to protect the rights and interests of the   Parties, the Parties confirm and agree the above means of communication   (including those after being changed), which can also be used as the address   and means of communication for effective service of the documents sent by   judicial organs, administrative organs and arbitration commissions settling   disputes. In case no one signs, replies or anyone refuses to receive the   documents, the above-mentioned units shall also be deemed to have served the   documents after recording the relevant situation, which shall be legally   effective to the Parties.
    
	
 
    	
 
    	
 
    
	
15.
    	
 
    	
1.       Both   Parties agree that this Agreement shall also apply to the new factory located   in Shiyan Street in the future, with the investment and rent to be discussed   separately by both Parties then.

 

2.       During   the term of cooperation, Party B will not carry out its own-brand enclosed   mini vape business.

 

3.       The   Parties agree that, since they are composed of multiple affiliates, the   Parties shall be jointly and severally liable for the rights and obligations   of their respective affiliates under this Agreement.

 

4.       Nothing   in this Agreement is intended or shall be deemed to create an   employer-employee relationship or a joint venture relationship between the   Parties.
    

 

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5.       Failure   by either Party to exercise, exercise in part or delay in exercising any of   its rights under this Agreement does not constitute a waiver of such rights   or any other rights unless such Party expressly waives its rights in writing.

 

6.       Neither   Party shall assign its rights or obligations under this Agreement without the   written consent of the other Party.

 

7.       Matters   not covered herein shall be settled by a written supplementary agreement   signed by both Parties through friendly consultation. The supplementary   agreements shall have the same legal effect as this Agreement.

 

8.       This   Agreement shall come into effect upon being sealed or signed by authorized   representatives of both Parties. This Agreement is made in octuplicate, with   one counterpart held by each Party respectively, which shall have the same   legal effect.
    

 

7

 

(Signature Page)

 

 

Party A1 (Seal): [Beijing Wuxin Technology Co., Ltd. company seal is affixed]

 

	
Representative (Signature):
    	
/s/ WEN Yilong
    	
 
    

 

 

Party A2 (Seal): [Shenzhen Wuxin Technology Co., Ltd. company seal is affixed]

 

	
Representative (Signature):
    	
/s/ WEN Yilong
    	
 
    

 

 

Party A3 (Seal): [Ningbo Wuxin Information Technology Co., Ltd. company seal is affixed]

 

	
Representative (Signature):
    	
/s/ WEN Yilong
    	
 
    

 

 

Party A4 (Seal):

 

	
Representative (Signature):
    	
/s/ WEN Yilong
    	
 
    

 

 

Party A5 (Seal):

 

	
Representative (Signature):
    	
/s/ WEN Yilong
    	
 
    

 

 

Party B1 (Seal): [Shenzhen Smoore Technology Co., Ltd. company seal is affixed]

 

	
Representative (Signature):
    	
/s/ HAN Jiyun
    	
 
    

 

 

Party B2 (Seal): [Shenzhen Smoore Brothers Technology Co., Ltd. company seal is affixed]

 

	
Representative (Signature):
    	
/s/ HAN Jiyun
    	
 
    

 

 

Party B3 (Seal): [Smoore Brothers Technology Co., Ltd. Shiyan Branch company seal is affixed]

 

	
Representative (Signature):
    	
/s/ HAN Jiyun
    	
 
    

 

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Attachment

 

	
Item
    	
 
    	
Contract Amount
   (Tax Exclusive)
    	
 
    	
Contract Amount
   (Tax Inclusive)
    	
 
    	
Type for Invoices
    
	
Equipment
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
Machinery and Equipment
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Decoration
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
Service Fee - Agency   Fee
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
[***]
    	
 
    	
[***]
    	
 
    	
—
    

 

List of Equipment

 

	
No.
    	
 
    	
Name and Type of Construction Installation Equipment
    	
 
    	
Total Invoice Amount
   (Tax Inclusive)
    
	
1
    	
 
    	
Ink-jet Printer
    	
 
    	
[***]
    
	
2
    	
 
    	
Ultrasonic Welding   Machine
    	
 
    	
[***]
    
	
3
    	
 
    	
Heat Shrinkable Furnace
    	
 
    	
[***]
    
	
4
    	
 
    	
Three-dimensional   Packer
    	
 
    	
[***]
    
	
5
    	
 
    	
Air Compressor
    	
 
    	
[***]
    
	
 
    	
 
    	
Air Dryer
    	
 
    	
[***]
    
	
 
    	
 
    	
Air Tank
    	
 
    	
[***]
    
	
 
    	
 
    	
Adsorption Dryer
    	
 
    	
[***]
    
	
6
    	
 
    	
Guohong Laser Marker
    	
 
    	
[***]
    
	
7
    	
 
    	
Han’s Laser Marker
    	
 
    	
[***]
    
	
8
    	
 
    	
Model 125 Encapsulator
    	
 
    	
[***]
    
	
9
    	
 
    	
Model 260 Encapsulator   + Manipulator Arm
    	
 
    	
[***]
    
	
10
    	
 
    	
Tooling Fixtures
    	
 
    	
[***]
    
	
11
    	
 
    	
Toolings
    	
 
    	
[***]
    
	
12
    	
 
    	
Two-dimensional   Measuring Instrument
    	
 
    	
[***]
    
	
13
    	
 
    	
Japanese Gaussmeter
    	
 
    	
[***]
    
	
14
    	
 
    	
Analog Battery Meter
    	
 
    	
[***]
    
	
15
    	
 
    	
Battery Tester
    	
 
    	
[***]
    
	
16
    	
 
    	
Paper Tape   Wear-resistant Tester
    	
 
    	
[***]
    
	
 
    	
 
    	
Salt Spray Tester
    	
 
    	
[***]
    
	
 
    	
 
    	
Simulation Transportation   Vibration Tester
    	
 
    	
[***]
    
	
 
    	
 
    	
Pneumatic Sealer
    	
 
    	
[***]
    
	
 
    	
 
    	
Digital Depth Meter
    	
 
    	
[***]
    
	
17
    	
 
    	
Sealing Tester
    	
 
    	
[***]
    
	
18
    	
 
    	
Button Life Tester
    	
 
    	
[***]
    
	
19
    	
 
    	
High-altitude   Low-pressure Simulation Box
    	
 
    	
[***]
    
	
20
    	
 
    	
Cold and Thermal Shock   Tester
    	
 
    	
[***]
    

 

9

 

	
21
    	
 
    	
Ampere Meter
    	
 
    	
[***]
    
	
22
    	
 
    	
Tooling Fixtures
    	
 
    	
[***]
    
	
23
    	
 
    	
Pressing Machine
    	
 
    	
[***]
    
	
24
    	
 
    	
Laser Marker
    	
 
    	
[***]
    
	
 
    	
 
    	
Laser Engraving Tray   Loader
    	
 
    	
[***]
    
	
 
    	
 
    	
Ink-jet Printer
    	
 
    	
[***]
    
	
 
    	
 
    	
Encapsulator (125)
    	
 
    	
[***]
    
	
 
    	
 
    	
Automatic Drip Machine   (Desk)
    	
 
    	
[***]
    
	
 
    	
 
    	
Atomizing Core Pressing   Machine
    	
 
    	
[***]
    
	
 
    	
 
    	
Thimble Pressing   Machine
    	
 
    	
[***]
    
	
 
    	
 
    	
10-Pump Liquid Injector
    	
 
    	
[***]
    
	
 
    	
 
    	
Resistance Tester
    	
 
    	
[***]
    
	
25
    	
 
    	
Transformer   Modification
    	
 
    	
[***]
    
	
26
    	
 
    	
Drinking Water in the Dormitories   of the Factory
    	
 
    	
[***]
    
	
27
    	
 
    	
Kitchen Utensils and   Appliances
    	
 
    	
[***]
    
	
28
    	
 
    	
Air Conditioners for   Dormitories in Building A
    	
 
    	
[***]
    
	
29
    	
 
    	
Shoe Cabinet
    	
 
    	
[***]
    
	
30
    	
 
    	
Shiyan Automatic   Assembly Line
    	
 
    	
[***]
    
	
31
    	
 
    	
Air-source Heat Pumps   for Shiyan Dormitories in Buildings A, C and D
    	
 
    	
[***]
    
	
32
    	
 
    	
Heat Pumps for the   Dormitories in Building A
    	
 
    	
[***]
    
	
33
    	
 
    	
Chigo Air Conditioners
    	
 
    	
[***]
    
	
34
    	
 
    	
Air-source Heat Pump   Heater
    	
 
    	
[***]
    
	
35
    	
 
    	
Air Conditioners in   Buildings A, C and D
    	
 
    	
[***]
    
	
36
    	
 
    	
Dormitory Beds in the   Factory
    	
 
    	
[***]
    
	
37
    	
 
    	
Office Furniture and   Shelf
    	
 
    	
[***]
    
	
38
    	
 
    	
Office Furniture
    	
 
    	
[***]
    
	
39
    	
 
    	
Three-drawer Cabinet   and Workbench
    	
 
    	
[***]
    
	
40
    	
 
    	
Stainless Steel Frame
    	
 
    	
[***]
    
	
41
    	
 
    	
Stainless Steel Shelf
    	
 
    	
[***]
    
	
42
    	
 
    	
Material Rack and   Wardrobe
    	
 
    	
[***]
    
	
43
    	
 
    	
Aging Rack
    	
 
    	
[***]
    
	
44
    	
 
    	
Kitchen Tableware
    	
 
    	
[***]
    
	
 
    	
 
    	
Invoice Amount (Tax   Inclusive)
    	
 
    	
[***]
    

 

List of Decoration

 

	
No.
    	
 
    	
Project Name
    	
 
    	
Amount Exclusive of Tax
   (Yuan)
    
	
01
    	
 
    	
Wall and Ceiling   Demolishing
    	
 
    	
[***]
    
	
02
    	
 
    	
Firefighting   Engineering
    	
 
    	
[***]
    
	
03
    	
 
    	
Decoration Design Fee
    	
 
    	
[***]
    
	
04
    	
 
    	
Workshop Decoration   Project
    	
 
    	
[***]
    
	
05
    	
 
    	
Office Decoration
    	
 
    	
[***]
    

 

10

 

	
06
    	
 
    	
Dining Room Decoration
    	
 
    	
[***]
    
	
07
    	
 
    	
Natural Gas Pipeline   Project
    	
 
    	
[***]
    
	
08
    	
 
    	
Weak Current   Engineering
    	
 
    	
[***]
    
	
09
    	
 
    	
Changes to Workshop   Decoration Project
    	
 
    	
[***]
    
	
10
    	
 
    	
Changes to Workshop   Decoration Project
    	
 
    	
[***]
    
	
 
    	
 
    	
Invoice   Amount (Tax Inclusive)
    	
 
    	
[***]
    

 

11

 

Supplementary Agreement to Exclusive Smoore Factory Cooperation Agreement

 

Signing Date: October 25, 2019

 

Whereas the Parties to the Exclusive Smoore Factory Cooperation Agreement (the “Original Agreement”) have agreed in detail on the cooperation matters between the Parties, this Supplementary Agreement only covers part of the rent paid by Party B before signing the Original Agreement and the rent paid by Party A for November on behalf of Party B, and the Parties hereby make the following supplementary agreement:

 

Both Parties confirm that, before signing the Original Agreement, Party B has paid part of the rent to the owner, i.e., RMB[***] (amount in words: RMB[***]), and Party A will pay the rent for November on behalf of Party B in the amount of RMB[***] (amount in words: RMB[***]).

 

Party A and Party B agree that the above rent will be apportioned among the payment for goods payable by Party A in October 2019. The specific way of operation is as follows: both Parties agree to temporarily increase the settlement amount of the payment for goods in October 2019. The specific increase amount is the same as the total rent above, i.e., the increase amount shall be RMB[***] (amount in words: RMB[***]). The payment time of the increase amount shall be the same as that of the Original Agreement.

 

The other terms of the Original Agreement shall remain unchanged, and the matters agreed in this Supplementary Agreement shall take precedence over the relevant terms of the Original Agreement.

 

(No text below)

 

Party A1 (Seal): Beijing Wuxin Technology Co., Ltd.

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/   WEN Yilong
    	
 
    

 

 

Party A2 (Seal): Shenzhen Wuxin Technology Co., Ltd.

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/   WEN Yilong
    	
 
    

 

1

 

Party A3 (Seal): Ningbo Wuxin Information Technology Co., Ltd.

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/   WEN Yilong
    	
 
    

 

 

Party A4 (Seal): Shenzhen Wuxin Brothers Technology Co., Ltd. (in Establishing)

 

	
Representative (Signature):
    	
/s/   WEN Yilong
    	
 
    

 

 

Party A5 (Seal): Shenzhen Wuxin Brothers Technology Co., Ltd. Shiyan Branch (in Establishing)

 

	
Representative (Signature):
    	
/s/   WEN Yilong
    	
 
    

 

 

Party B1 (Seal): Shenzhen Smoore Technology Co., Ltd.

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/ HAN Jiyun
    	
 
    

 

 

Party B2 (Seal): Shenzhen Smoore Brothers Technology Co., Ltd.

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/ HAN Jiyun
    	
 
    

 

 

Party B3 (Seal): Shenzhen Smoore Brothers Technology Co., Ltd. Shiyan Branch

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/ HAN Jiyun
    	
 
    

 

2

 

The Second Supplementary Agreement to Exclusive Smoore Factory Cooperation Agreement

 

Signing Date: October 26, 2019

 

Whereas the Parties to the Exclusive Smoore Factory Cooperation Agreement (the “Original Agreement”) have agreed in detail on the cooperation matters between the Parties, this Supplementary Agreement only covers Section 3 of the Original Agreement and the Parties hereby make the following supplementary agreement:

 

	
3.
    	
The Parties agree that: Party B will issue VAT   special invoices with a tax rate of [***]% for machinery and equipment based   on the actual situation. Party B will issue VAT special invoices with a tax   rate of [***]% for decoration (subject to the invoices approved by the tax   authority) based on the actual situation (The specific payable amount shall   be subject to the tax rate recognized by the tax authority and the qualified   invoices that can be issued (price with tax included). If the tax rate is   lower than [***]%, the invoice and settlement amount shall be   determined in principle that the amount excluding tax remains unchanged). If   Party B is unable to issue the invoices for decoration, both Parties shall enter into a supplementary   agreement through friendly negotiation. The invoicing of the above equipment   and decoration shall begin immediately after Party A5 (Party A’s project   company) has been successfully registered and qualified as a general   taxpayer. Party A shall complete the above matters as soon as possible so that   Party B can issue relevant invoices. The Parties agree and confirm that, in the actual performance of the   Original Agreement by the Parties, the decoration and equipment under the Original Agreement will be handed over and all related risks will be transferred on November 1, 2019. The   above matters at the execution level of both Parties shall be post-contract obligations, which shall not affect the   timely performance of other rights and obligations under the Original Agreement.
    

 

The other terms of the Original Agreement shall remain unchanged, and the matters agreed in this Supplementary Agreement shall take precedence over the relevant terms of the Original Agreement.

 

(No text below)

 

1

 

Party A1 (Seal): Beijing Wuxin Technology Co., Ltd.

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/   WEN Yilong
    	
 
    

 

 

Party A2 (Seal): Shenzhen Wuxin Technology Co., Ltd.

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/   WEN Yilong
    	
 
    

 

 

Party A3 (Seal): Ningbo Wuxin Information Technology Co., Ltd.

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/   WEN Yilong
    	
 
    

 

 

Party A4 (Seal): Shenzhen Wuxin Brothers Technology Co., Ltd. (in Establishing)

 

	
Representative (Signature):
    	
/s/   WEN Yilong
    	
 
    

 

 

Party A5 (Seal): Shenzhen Wuxin Brothers Technology Co., Ltd. Shiyan Branch (in Establishing)

 

	
Representative (Signature):
    	
/s/   WEN Yilong
    	
 
    

 

 

Party B1 (Seal): Shenzhen Smoore Technology Co., Ltd.

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/   HAN Jiyun
    	
 
    

 

 

Party B2 (Seal): Shenzhen Smoore Brothers Technology Co., Ltd.

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/ HAN Jiyun
    	
 
    

 

2

 

Party B3 (Seal): Shenzhen Smoore Brothers Technology Co., Ltd. Shiyan Branch

 

[Company seal is affixed]

 

	
Representative (Signature):
    	
/s/   HAN Jiyun
    	
 
    

 

3

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