Document:

Exhibit 4.32

 

SHARE PURCHASE AGREEMENT

 

THIS SHARE PURCHASE AGREEMENT (this “Agreement”) is made as of February 10, 2015 by and among:

 

(1)                                 IDG Technology Venture Investment V, L.P., a limited partnership organized and existing under the laws of the State of Delaware (“IDG”);

 

(2)                                 Yifang Technology Group, Ltd., an international business company incorporated in and existing under the laws of the the British Virgin Islands (“Yifang” and together with IDG, the “Sellers” and each, a “Seller”); and

 

(3)                                 Phoenix New Media Limited (the “Investor”).

 

Each of the foregoing parties is referred to herein individually as a “Party” and collectively as the “Parties”.

 

RECITALS

 

A.                                    IDG desires to sell to the Investor, and the Investor desires to purchase from IDG, 20,370,000 ordinary shares of Particle Inc., an exempted limited liability company incorporated under the laws of the Cayman Islands (the “Company”), par value of US$0.0001 each (the “Ordinary Shares”) on the terms and conditions set forth in this Agreement.

 

B.                                    Yifang desires to sell to the Investor, and the Investor desires to purchase from Yifang, 41,783,703 Class A ordinary shares of the Company, par value of US$0.0001 each (the “Class A Ordinary Shares”) on the terms and conditions set forth in this Agreement.

 

C.                                    On February 10, 2015, the Investor, the Company and certain other parties thereto entered into a share purchase agreement (the “Series C Purchase Agreement”) pursuant to which the Investor will subscribe for certain series C preferred shares of the Company, par value US$0.0001 each (the “Series C Shares”).

 

D.                                    The Parties desire to enter into this Agreement and make their respective representations, warranties, covenants and agreements set forth herein.

 

THE PARTIES HEREBY AGREE AS FOLLOWS:

 

SECTION 1.
 SALE AND PURCHASE OF PURCHASED SHARES

 

1.1                               Sale of Purchased Shares. Subject to the terms and conditions hereof and in consideration of the Purchase Price set forth below, each Seller hereby agrees to sell to the Investor, and the Investor hereby agrees to purchase from each Seller, such number of the Ordinary Shares or Class A Ordinary Shares set forth opposite to such Seller’s name on Schedule I hereto (collectively, the “Purchased Shares”), at a price of US$0.443205 per Purchased Share, amounting to an aggregate purchase price of US$27,546,832 (the “Purchase Price”). Immediately following the sale and delivery of the Purchased Shares to the Investor by each Seller, each such Purchased Share shall be repurchased and cancelled by the Company and one Series C Share shall be issued for each such Purchased Share.

 

 

SECTION 2.
 CLOSING

 

2.1                               The Closing. The closing of the sale and purchase of the Purchased Shares between a Seller and the Investor hereunder shall take place remotely via the exchange of documents and signatures on the third (3rd) Business Day after the satisfaction or otherwise waiver of the relevant conditions as set forth in Section 6 and Section 7 by the Party entitled to waive such condition (except for the conditions that by their nature are to be satisfied at closing, but subject to the satisfaction or waiver of those conditions at closing), or at such other time and place as mutually agreed by such Seller and the Investor (the “Closing”, and such date the “Closing Date”).

 

2.2                               Deliveries.  At the Closing.

 

(a)                                 Each Seller shall deliver to the Investor, in addition to any item the delivery of which is made an express closing condition pursuant to Section 6 hereof, (i) an instrument of transfer duly executed by each Seller in respect of the Purchased Shares to be sold by such Seller, and (ii) to the extent that one has been issued, a certificate representing the number of the Purchased Shares to be sold by such Seller to the Investor.  Each Seller agrees to use best efforts to request from the Company the delivery of an updated register of members of the Company certified by a director of the Company as true and complete as of the Closing Date reflecting the Investor as the holder of a number of Series C Shares equal to the number of Purchased Shares; and

 

(b)                                 the Investor shall pay to each Seller the Purchase Price set forth opposite to its name on Schedule I, in each case by wire transfer of immediately available funds to an bank account outside the People’s Republic of China (the “PRC”, for the purpose of this Agreement, excluding Hong Kong, Macau and Taiwan) designated by such Seller no later than five (5) days prior to the Closing.

 

SECTION 3.
 REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

 

The Investor hereby represents and warrants to each Seller as follows:

 

3.1                               Organization, Good Standing and Qualification. The Investor is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all requisite corporate power and authority to carry on its business as now conducted and as proposed to be conducted.

 

3.2                               Authorization. The Investor has all requisite power, authority and capacity to enter into this Agreement and any other agreements to which it is a party and the execution of which is contemplated hereunder (collectively, the “Ancillary Agreements”), and to perform its obligations under this Agreement and each of the Ancillary Agreements. This Agreement has been duly authorized, executed and delivered by the Investor. This Agreement and the Ancillary Agreements, when executed and delivered by the Investor, will constitute valid and legally binding obligations of the Investor, subject, as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditors’ rights generally and to general equitable principles.

 

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3.3                               Compliance with Laws; Consents and Permits.

 

(a)                                 None of the execution, delivery and performance by the Investor of this Agreement or the other Transaction Documents to which it is a party, the consummation of the transactions contemplated hereby or thereby, or compliance by the Investor with any of the provisions hereof or thereof will breach or conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) or loss of a benefit under, or give rise to a right of termination, consent or cancellation or increase in any fee, liability or obligation under, any provision of (i) the organizational documents of the Investor; (ii) any agreement to which the Investor is a party or by which any of its properties or assets are bound; (iii) any order, injunction, judgment, decree, legally binding notice, ruling, writ, assessment or arbitration award of any supranational, national, state, municipal or local court or tribunal or administrative, governmental or regulatory body, agency or authority (a “Governmental Authority”) applicable to the Investor or by which any of its properties or assets are bound; or (iv) any applicable Law. “Law” means foreign, federal, state, municipal or local law, statute, code, ordinance, rule, decree, regulation or any common law of any Government Authority or jurisdiction.

 

(b)                                 No consent, approval, order or authorization of or registration, qualification, designation, declaration or filing with, any Governmental Authority is required on the part of the Investor is required in connection with the valid execution and delivery by the Investor of this Agreement or any other Transaction Documents to which it is a party and the consummation of the transactions contemplated hereunder or thereunder.

 

3.4                               Purchase for Own Account. The Investor is acquiring the Purchased Shares solely for investment for its own account not as a nominee or agent, and not with a view to the resale or distribution of any part thereof.

 

3.5                               Investment Experience. The Investor (i) has such knowledge and experience in financial and business matters as to be capable of evaluating the merits, risks and suitability of the transactions contemplated by this Agreement, (ii) is able to bear the risk of an entire loss of its investment herein, and (iii) is consummating the Agreement and any relevant Ancillary Agreements with a full understanding of all of the terms, conditions and risks and willingly assumes those terms, conditions and risks.

 

SECTION 4.
 REPRESENTATIONS AND WARRANTIES OF THE SELLERS

 

Each Seller hereby, severally and not jointly, represents and warrants to the Investor that, as of the date hereof and as of the Closing Date:

 

4.1                               Organization, Good Standing and Qualification. Such Seller is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all requisite corporate power and authority to carry on its business as now conducted and as proposed to be conducted.

 

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4.2                               Authorization. All corporate action on the part of such Seller necessary for the authorization, execution and delivery of this Agreement and each of the Ancillary Agreements, and the performance of all obligations of such Seller hereunder and thereunder, and the sale and delivery of the Purchased Shares to be sold by such Seller has been taken or will be taken prior to the Closing. Each of this Agreement and the Ancillary Agreement (the “Transaction Documents”) constitutes the valid and legally binding obligation of such Seller, enforceable against such Seller in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium fraudulent conveyance, or other Laws of general application relating to or affecting the enforcement of creditors’ rights generally, and (ii) as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

4.3                               Title to Shares. Such Seller is the sole record owner of the Purchased Shares to be sold by it. Such Seller has good and marketable title to the Purchased Shares to be sold by it free and clear of any liens (including, without limitation, tax lien), encumbrance, pledge, mortgage, deed of trust, security interest, claim, lease, charge, option, restrictive covenant, right of first refusal, right of first offer, easement, servitude or other restriction having similar effect (collectively, “Liens”) and has the sole and absolute authority to transfer and deliver such Purchased Shares to the Investor pursuant to this Agreement at Closing, and such delivery will convey to the Investor good and marketable title to such Purchased Shares, free and clear of any Liens.

 

4.4                               Compliance with Laws; Consents and Permits.

 

(a)                                 None of the execution, delivery and performance by such Seller of this Agreement or the other Transaction Documents to which it is a party, the consummation of the transactions contemplated hereby or thereby, or compliance by such Seller with any of the provisions hereof or thereof will breach or conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) or loss of a benefit under, or give rise to a right of termination, consent or cancellation or increase in any fee, liability or obligation under, any provision of (i) the organizational documents of such Seller; (ii) any agreement to which such Seller is a party or by which any of its properties or assets are bound; (iii) any order, injunction, judgment, decree, legally binding notice, ruling, writ, assessment or arbitration award of any Governmental Authority applicable to such Seller or by which any of its properties or assets are bound; or (iv) any applicable Law.

 

(b)                                 No consent, approval, order or authorization of or registration, qualification, designation, declaration or filing with, any Governmental Authority is required on the part of such Seller is required in connection with the valid execution and delivery by such Seller of this Agreement or any other Transaction Documents to which it is a party and the consummation of the transactions contemplated hereunder or thereunder.

 

4.5                               Consent from the Company and the Existing Shareholders. Prior to Closing, each of the Company and its shareholders has (a) consented to and authorized the sale of the Purchased Shares and the other transactions as contemplated by this Agreement, (b) waived any preemptive rights, right of first refusal, right of first offer, tag-along right, veto rights and any other rights in the similar nature it may have in relation to the sale of Purchased Shares.

 

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4.6                               No Additional Representations.  Except for the representations and warranties made by the Sellers in this Section 4, no Seller makes any other express or implied representation or warranty with respect to the Company or any of its subsidiaries or their respective business, operations, assets, liabilities, condition (financial or otherwise) or prospects or any other information relating to the Company. Neither the Sellers nor any other Person will have or be subject to any liability or indemnity obligations to the Investor resulting from the distribution or disclosure or failure to distribute or disclose to the Investor, or its use of, any information, unless and to the extent such information is expressly included in or required by the representations and warranties contained in this Section 4.

 

SECTION 5.
 COVENANTS OF SELLERS AND INVESTOR

 

5.1                               Tax Matters.  Each Seller shall duly and timely comply with all of its or his tax payment obligations as required by applicable Law in connection with the transactions contemplated under this Agreement, including without limitation timely making all filings required under Circular 698 in respect of the transactions contemplated hereby and pay all taxes due and payable in accordance with official assessments in respect of such filings. “Circular 698” means Circular No. 698 (国税函[2009] 698号) issued by the PRC State Administration of Taxation on December 10, 2009, titled “Notice on Strengthening the Administration of Enterprise Income Tax on Income Derived from Equity Transfer Made by Non-Resident Enterprise (关于加强非居民企业股权转让所得企业所得税管理的通知)”, including any amendment, implementing rules, or official interpretation thereof or any replacement, successor or alternative legislation having the same subject matter thereof.

 

5.2                               Resignation of Directors. Prior to the Closing, each Seller shall cause its representative to resign from the board of directors of the Company, effective no later than the Closing Date.

 

5.3                               Closing Conditions. Each Party shall use its reasonable best efforts to timely satisfy each of the conditions to be satisfied by it as provided in Sections 6 and 7 of this Agreement.

 

SECTION 6.
 CONDITIONS TO INVESTOR’S OBLIGATIONS AT THE CLOSING

 

6.1                               The obligation of the Investor to purchase any Purchased Shares in relation to the transaction contemplated hereby is subject to the fulfillment, or waiver by the Investor, of the following conditions:

 

(a)                                 Representations and Warranties True and Correct. The representations and warranties of the Sellers contained in Section 4 shall be true and correct and complete in all material aspects when made, and shall be true and correct and complete in all material aspects as of the Closing Date with the same force and effect as if they had been made on and as of such date, subject to changes contemplated by this Agreement.

 

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(b)                                 Performance of Obligations. Each Seller shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing.

 

(c)                                  Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions to be passed, executed and/or delivered by the Sellers shall be satisfactory in substance and form to the Investor, and the Investor shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request.

 

(d)                                 Consents and Waivers. Each Seller shall have obtained any and all approvals, consents and waivers necessary for consummation of the transactions contemplated under the Transaction Documents, including without limitation the waiver by the existing shareholders of the Company and the Company of any rights of consent, rights of first refusal, right of first offer, tag-along right, veto right and all similar rights (if any) in connection with the sale of the Purchased Shares to be purchased by the Investor at Closing and the Reclassification Transactions, in each case, the Investor shall have received copies of such consents and waivers to its satisfaction.

 

(e)                                  Shareholders Resolution.  The Investor shall have received a copy of the resolutions duly and validly adopted by the board of directors of the Company and the shareholders of the Company, each certified by a director of the Company, evidencing the Company’s and the shareholders’ authorization of the repurchase and cancellation of each Purchased Share held by Phoenix immediately after the Closing and the issuance of one Series C Share for each such Purchased Share (such transaction collectively, the “Reclassification Transactions”).

 

(f)                                   Transfer or Increase of Equity Interests of Domestic Enterprise.  An individual designated by the Investor (the “Investor Nominee”) shall have become a shareholder of Beijing Yidianwangju Technology Co., Ltd. (北京一点网聚科技有限公司), a company incorporated under the laws of the PRC (the “Domestic Enterprise”) holding 46.85% of the equity interests in the Domestic Enterprise, either by acquiring equity interests from the shareholders of the Domestic Enterprise or subscribing for increased registered capital of the Domestic Enterprise, and the application to record the Investor Nominee as a shareholder of the Domestic Enterprise holding 46.85% of its equity interests shall have been submitted to the applicable Administration for Industry and Commerce. The Control Documents (as defined under the currently effective memorandum and articles of association of the Company) shall have been amended in form and substance satisfactory to the Investor to reflect to foregoing acquisition or subscription.

 

(g)                                  Series C Purchase Agreement. The closing under the Series C Purchase Agreement shall have occurred.

 

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(h)                                 Closing Deliverables. Each Seller shall have delivered each of the items set forth in Section 2.2(a) and the Company shall have delivered to the Investor an updated register of members of the Company certified by a director of the Company as true and complete as of the Closing Date reflecting the Investor as the holder of a number of Series C Shares equal to the number of Purchased Shares.

 

SECTION 7.
 CONDITIONS TO SELLERS’ OBLIGATIONS AT THE CLOSING

 

7.1                               The obligations of each Seller to sell the Purchased Shares to be sold by it to the Investor under this Agreement are subject to the fulfillment, or waiver by each Seller, as the case may be, at or before the Closing of the following conditions:

 

(a)                                 Representations and Warranties True and Correct. The representations and warranties made by the Investor in Section 3 hereof shall be true and correct and complete in all material aspects when made, and shall be true and correct and complete in all material aspects as of the date hereof and as of the Closing Date as with the same force and effect as if they had been made on and as of such dates, subject to changes contemplated by this Agreement.

 

(b)                                 Performance of Obligations. The Investor shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing.

 

(c)                                  Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions to be passed by the Investor shall have been obtained prior to the Closing.

 

(d)                                 Closing Deliverables. The Investor shall have delivered each of the items required to be delivered by it set forth in Section 2.2(b).

 

SECTION 8.
 MISCELLANEOUS

 

8.1                               No-Shop. Each Seller agrees that, from the date hereof until the earlier of the Closing or the termination of this Agreement (the “Exclusivity Period”), without the prior written consent of the Investor, such Seller shall not, directly or indirectly, take any action to solicit, encourage others to solicit, encourage or accept any offers for the purchase or acquisition of the Purchased Shares owned by such Seller.

 

8.2                               Indemnification. Subject to the Investor’s representations and warranties and the terms and conditions of this Section 8.2, each Seller hereby agrees to severally and not jointly indemnify and hold harmless the Investor, and the Investor’s affiliates, directors, officers, agents and assigns, from and against any and all losses, liabilities, damages, claims, obligations, costs and expenses, interest, awards, judgments and penalties (including, without limitation, arbitral tribunal fees, reasonable attorneys’ and consultants’ fees and expenses) (collectively, “Losses”) actually and directly suffered or incurred by the Investor, or the Investor’s affiliates, directors, officers, agents and assigns (each, an “Indemnified Person”), as a result of, or based upon or arising from any inaccuracy in, or breach or non-performance of any of the representations, warranties, covenants or agreements made by such Seller in or pursuant to this Agreement or any of the other Transaction Documents. The rights contained in this Section 8.2 shall not be deemed to preclude or otherwise limit in any way the exercise of any other rights or pursuit of other remedies for the breach of this Agreement.

 

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8.3                               Governing Law. This Agreement shall be governed by and construed exclusively in accordance the laws of the Hong Kong Special Administrative Region of China (“Hong Kong”) without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than Hong Kong to the rights and duties of the Parties hereunder.

 

8.4                               Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the Parties hereto whose rights or obligations hereunder are affected by such amendments. This Agreement and the rights and obligations therein may not be assigned by such Seller without the written consent of the Investor.

 

8.5                               Entire Agreement. The Transaction Documents, and the schedules and exhibits hereto and thereto, which are hereby expressly incorporated herein by this reference constitute the entire understanding and agreement between the Parties with regard to the subjects hereof and thereof; provided, however, that nothing in this Agreement or related agreements shall be deemed to terminate or supersede the provisions of any confidentiality and nondisclosure agreements executed by the Parties hereto prior to the date hereof, which agreements shall continue in full force and effect until terminated in accordance with their respective terms.

 

8.6                               Notices. Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to the other Party, upon delivery; (b) when sent by facsimile at the number set forth in Exhibit A hereto, upon receipt of confirmation of error-free transmission; (c) seven (7) business days after deposit in the mail as air mail or certified mail, receipt requested, postage prepaid and addressed to the other Party as set forth in Exhibit A; (d) three (3) business days after deposit with an overnight delivery service, postage prepaid, addressed to the Parties as set forth in Exhibit A with next business-day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider or (e) when sent by electronic mail to the address set forth in Exhibit A hereto, during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s next business day.  Each person making a communication hereunder by facsimile shall promptly confirm by telephone to the person to whom such communication was addressed each communication made by it by facsimile pursuant hereto but the absence of such confirmation shall not affect the validity of any such communication. A Party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 8.6 by giving, the other Party written notice of the new address in the manner set forth above.

 

8.7                               Amendments and Waivers. Any term of this Agreement may be amended only with the written consent of all Parties hereto, provided that any terms solely relating to a Seller may be amended with the written consent of such Seller and the Investor. 

 

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8.8          Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any Party hereto, upon any breach or default of any other Party hereto under this Agreement, shall impair any such right, power or remedy of such former Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach of default thereafter occurring.

 

8.9          Interpretation; Titles and Subtitles. This Agreement shall be construed according to its fair language. The rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. Unless otherwise expressly provided herein, all references to Sections and Exhibits herein are to Sections and Exhibits of this Agreement.

 

8.10        Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.  This Agreement shall become effective when each Party shall have signed a counterpart.  Facsimile, PDF and e-mailed copies of signatures shall be deemed to be originals for purposes of the effectiveness of this Agreement.

 

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

 

8.12        Confidentiality and Non-Disclosure.

 

(a)           Disclosure of Terms. The terms and conditions of the Transaction Documents and all exhibits and schedules attached hereto and thereto (collectively, the “Financing Terms”), including their existence, shall be considered confidential information and shall not be disclosed by any party hereto to any third party except in accordance with the provisions set forth below; provided that such confidential information shall not include any information that is in the public domain other than caused by the breach of the confidentiality obligations hereunder.

 

(b)           Permitted Disclosures. Notwithstanding the foregoing, any Party may disclose any of the Financing Terms to its current or bona fide employees, investment bankers, lenders, partners, accountants and attorneys, in each case only where such persons or entities are under appropriate nondisclosure obligations.

 

(c)           Legally Compelled Disclosure. In the event that any Party is requested or becomes legally required (including without limitation, pursuant to securities laws and regulations) to disclose the existence of any Transaction Document or any of the exhibits and schedules attached hereto or thereto, or any of the Financing Terms hereof in contravention of the provisions of this Section 8.12, such party (the “Disclosing Party”) shall provide the other Parties (the “Non-Disclosing Parties”) with prompt written notice of that fact and use all reasonable efforts to seek (with the cooperation and reasonable efforts of the other parties) a protective order, confidential treatment or other appropriate remedy. In such event, the Disclosing Party shall furnish only that portion of the information which is legally required to be disclosed and shall exercise reasonable efforts to keep confidential such information to the extent reasonably requested by any Non-Disclosing Party. Notwithstanding anything contained herein to the contrary, the Investor shall be entitled to issue one or more press release in connection with its execution of this Agreement and the transactions contemplated hereby, subject to prior consent by the Sellers of the content of the press release, provided, however, no consent by the Sellers shall be required if the Investor is requested or is or becomes legally required (including without limitation, pursuant to securities laws and regulations) to issue such press release.

 

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(d)           Other Information. The provisions of this Section 8.12 shall be in addition to, and not in substitution for, the provisions of any separate nondisclosure agreement executed by any of the parties with respect to the transactions contemplated hereby.

 

8.13        Further Assurances. Each Party shall from time to time and at all times hereafter make, do, execute, or cause or procure to be made, done and executed such further acts, deeds, conveyances, consents and assurances without further consideration, which may reasonably be required to effect the transactions contemplated by this Agreement.

 

8.14        Dispute Resolution. All disputes and controversies arising out of or in connection with this Agreement shall be resolved by arbitration in Hong Kong by the Hong Kong International Arbitration Centre using the Hong Kong International Arbitration Centre Administered Arbitration Rules (the “Rules”) in force when the Notice of Arbitration (as defined by the Rules) is submitted in accordance with the Rules.  The award of the arbitration tribunal shall be final and binding upon the Parties.  The validity, construction and interpretation of this dispute resolution clause shall be governed by the laws of Hong Kong.

 

8.15        Expenses. Each Party shall be responsible for its own costs and expenses in connection with the negotiation, execution, and delivery of this Agreement and the other Transaction Documents.

 

8.16        Termination. This Agreement may be terminated on or after May 5, 2015

 

(a)           by any Seller, as between such Seller and the Investor, or

 

(b)           by the Investor, as between the Investor and any Seller;

 

by written notice to each of the other Parties, if the Closing has not occurred on or prior to such date, provided that the right to terminate this Agreement shall not be available to any Party whose breach of the terms of this Agreement has resulted in the failure of the Closing to occur prior to such date. Such termination shall (i) be without prejudice to any claims for damages or other remedies that the Parties may have under this Agreement or applicable law, and (ii) not affect the rights and obligations contained in this Agreement between the Parties with respect to whom this Agreement has not been terminated. The provisions of Section 8 shall survive the termination of this Agreement.

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

 

 

	
 
    	
IDG Technology Venture Investment V, L.P.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ HO Chi Sing
    
	
 
    	
Name:
    	
HO Chi Sing
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

 

 

	
 
    	
Yifang Technology Group, Ltd.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ XU Yong
    
	
 
    	
Name:
    	
XU Yong
    
	
 
    	
Title:
    	
Director
    

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

 

 

	
 
    	
Phoenix New Media Limited
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ LI Ya
    
	
 
    	
Name:
    	
LI Ya
    
	
 
    	
Title:
    	
Directorexh_101.htm

EXHIBIT 10.1

 

SEPARATION AGREEMENT

 

This Separation Agreement (this “Agreement”) is made by and between Marlin Business Services Corp. (the “Company”) and Lynne C. Wilson (the “Employee”). The Company and the Employee are each referred to individually herein as a “Party” and, collectively, as the “Parties.”

 

WHEREAS, the Employee is employed as an at-will employee by the Company as its Chief Financial Officer and Senior Vice President;

 

WHEREAS, the Employee has agreed that she will voluntarily resign her employment, and that the Company intends to accept said resignation; and

 

WHEREAS, the Company and the Employee have reached a full and final agreement between and among them relating to the Employee’s employment with the Company and separation of employment from the Company.

 

NOW THEREFORE, in exchange for their mutual promises herein set forth, each intending to be legally bound hereby, and in consideration of the following mutual promises and covenants, the Parties hereby agree as follows:

 

1.  Transition Period and Resignation Date.

 

(a)  Notwithstanding any other provision of this Agreement, unless otherwise agreed to in writing by the Parties, Employee shall resign her employment with Company (as well as from all director, officer or other positions she holds on behalf of the Company and its affiliates) effective May 31, 2015, on which date her employment with the Company shall terminate (the “Separation Date”). On or about the Separation Date, the Employee agrees to sign the documents attached hereto as Exhibit “A” to facilitate this resignation.

 

(b)  The time between the date Employee executes this Agreement and the Separation Date shall be known as the “Transition Period.”  The Employee’s duties during the Transition Period shall be as directed by the Chief Executive Officer of the Company and shall be consistent with the reasonable duties previously performed in Employee’s capacity as Chief Financial Officer and Senior Vice President. For example, the Chief Executive Officer may require the employee to perform work necessary to complete projects relating to her duties as the Chief Financial Officer of the Company. Additionally, the Chief Executive Officer may require the Employee to assist in other reasonable transition matters.  The Employee is expected to perform her duties efficiently and faithfully.  The Company may, at its discretion, end the Transition Period before the Separation Date, if the Employee knowingly and willfully fails to perform duties in accordance with this Agreement or if the Employee otherwise knowingly and willfully acts in a manner that materially harms the Company or any of its affiliates (for “Cause”).  If the Company terminates the Employee’s employment prior to the Separation Date for Cause, the Employee shall not be entitled to payments or benefits under this Agreement for periods after the end of the date of such termination for Cause (the “Termination Date”), which includes, for the avoidance of doubt, the separation benefits set forth in Section 2 of this Agreement.

 

(c)  The Company shall continue to employ Employee through the Separation Date or the Termination Date (as applicable), and, through the Separation Date or the Termination Date (as applicable), the Company will pay the Employee no less than her normal base salary, less applicable deductions for state, federal, and local taxes and any other payroll deductions that are on record for her, on the same schedule as payroll for similarly-situated active employees.  Through the Separation Date or the Termination Date (as applicable), the Employee will continue to earn additional vacation/sick/paid time off days and the Employee will continue to be eligible to participate in all other employee benefits available to active employees. Through April 30, 2015, the Parties agree that the Employee has nine accrued and unused vacation/sick/paid time off days.

 

  

  

  

(d)  The Employee will be paid her full bi-weekly salary through the Separation Date or the Termination Date (as applicable) on the same schedule as payroll for similarly-situated active employees.  Additionally, regardless of whether the Employee signs this Agreement, the Company will pay the Employee for (i) all accrued but unused vacation/sick/personal time off through the Separation Date or the Termination Date (as applicable); (ii) any reimbursements for business expenses incurred prior to the Separation Date or the Termination Date (as applicable), subject to the Company’s reimbursement policy; and (iii) any other vested benefits to which she is entitled under the Company’s employee benefit plans.  All such payments and benefits shall be made or provided in accordance with applicable law and, if applicable, the terms of the employee benefit plans.

 

(e)  The Employee represents that, as of the date the Employee executes this Agreement, she has been paid in full for all time actually worked and all amounts owed under normal Company policies.

 

2.  Separation Benefits.  Unless the Company terminates the Employee for Cause prior to the Separation Date, then, in consideration of the Employee’s promises hereunder and subject to the terms and conditions of this Agreement:

 

(a)  The Company will pay the Employee cash “Severance Pay” equal to $275,049.00, payment of which shall commence as of the Payment Start Date (as defined below) and shall be paid in accordance with the normal payroll practices of the Company over a period of 12 months following the Payment Start Date.

 

(b)  For the period commencing on the Separation Date, and ending on the date on which COBRA continuation coverage otherwise ends by its terms, the Employee shall be entitled to COBRA coverage at the rate that applies for corresponding coverage for employees whose employment has not terminated.  The Employee must elect COBRA continuation coverage in accordance with applicable law and the terms of the applicable Company plans. The parties intend that the coverage afforded to the Employee under COBRA be the same as the Company would otherwise afford a separating eligible Company employee for whom the Company previously provided health insurance for the employee, the employee’s spouse, and children (i.e., family coverage).

 

(c)  As of the Payment Start Date, the Employee shall be vested in 10,043 shares of outstanding restricted stock held by the Employee as of the Separation Date which would not otherwise be vested as of the Separation Date.  The Employee will forfeit any outstanding shares of restricted stock held by the Employee as of the Separation Date other than the shares described in the preceding sentence.

 

  

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The “Payment Start Date” is the date that is five days after the Separation Date.  No payments or benefits shall be provided to the Employee pursuant to this Section 2 unless, as of the Payment Start Date, this Agreement has been executed and the revocation period has expired and the Employee has not revoked the Release.

 

3.  Consideration.  The Employee understands and agrees that the separation benefits specified above in Section 2 are greater than the separation benefits that would otherwise be available to her, and that she would not be entitled to receive this level of separation benefits, except for her execution of this Agreement on or before April 22, 2015, non-revocation, re-affirmation (if applicable) and fulfillment of the promises contained herein.

 

4.  Release of Claims.  The Employee knowingly and voluntarily releases and forever discharge the Company, and its past, present and future affiliates, partners, representatives, successors, assigns, directors, officers, executives, agents, trustees, administrators and fiduciaries under any Company benefit program (collectively “Releasees”) from any and all known (or, through reasonable diligence, should have known) claims, obligations and causes of actions, which the Employee, her family, heirs, executors, administrators, successors and assigns have or may have as of the date of execution of this Agreement in connection with her employment with and separation of employment from the Company, including, but not limited to, any claims related to pay, commission, hours, bonuses, pension, disability, physical or mental affliction, benefits (including vacation/sick/paid time off days and payment for unused vacation/sick/paid time off days), terms and conditions of employment and claims of discrimination on account of age, race, color, sex, sexual harassment, sexual orientation, marital status, disability, national origin, citizenship, religion or retaliation, including any alleged violation of (a)the Age Discrimination in Employment Act of 1967, as amended; (b) Title VII of the Civil Rights Act of 1964, as amended; (c) the Civil Rights Act of 1991; (d) Section 1981 through 1988 of Title 42 of the United States Code, as amended; (e) the Employee Retirement Income Security Act of 1974, as amended; (f) the Immigration Reform Control Act, as amended; (g) the Americans with Disabilities Act of 1990, as amended; (h) the National Labor Relations Act, as amended; (i) the Fair Labor Standards Act, as amended; (j) the Occupational Safety and Health Act, as amended; (k) the Family and Medical Leave Act of 1993; (l) the Sarbanes-Oxley Act; (m) the federal Worker Adjustment and Retraining Notification Act and any similar state laws, (n) the Lilly Ledbetter Fair Pay Act; (o) the New Jersey Law Against Discrimination; (p) the New Jersey Wage and Hour Law, (q) any state or local antidiscrimination law; (r) any state or local wage and hour law; (s) any other local, state or federal law, regulation or ordinance; (t) any whistleblower law; (u) any public policy, contract, tort, or common law; or (v) any allegation for costs, fees, or other expenses including attorneys’ fees incurred in these matters.  The Employee specifically releases any claim based on any amendment to the laws referenced, whenever such amendment was enacted.  The Employee does not, however, release any claim which a statute provides may not be released under any circumstances. The Employee expressly reserves the right to file for unemployment compensation, which the Company agrees not to contest, unless Employee is terminated for Cause during the Transition Period.  

 

  The Employee represents that she has not submitted any claim or lawsuit against the Releasees unless such submission has been disclosed to the Company (and the Company states that no such disclosure has been received).  The Employee agrees not to sue the Releasees in any court proceeding for any released claims.

 

  

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The Employee acknowledges that this Agreement does not limit either Party’s right, where applicable, to file or participate in any charge of discrimination or other investigative proceeding of any federal, state or local governmental agency.  To the extent permitted by law, the Employee agrees that if such an administrative claim is made against any Releasee(s), she shall not be entitled to recover any individual monetary relief or other individual remedies beyond what is provided in this Agreement. 

 

5.  Knowing and Voluntary.  The Employee agrees that this Agreement is being given knowingly and voluntarily and acknowledges that:

 

(a)  This Agreement is written in a manner understood by her.

 

(b)  This Agreement refers to rights under the Age Discrimination in Employment Act, as amended.

 

(c)  This Agreement does not release any claims regarding matters that have occurred after the date she signs this Agreement and Release.

 

(d)  She has been advised to consult with an attorney prior to signing this Agreement.

 

(e)  She has received valuable consideration for this Agreement other than amounts she is already entitled to receive.

 

(f)  The Employee has received this Agreement on April 1, 2015 and acknowledges that the Company has provided her with at least twenty-one (21) days to consider whether to sign it.  The Employee agrees that changes or modifications to this Agreement do not restart or otherwise extend the above twenty-one (21) day period.  If the Employee chooses to sign this Agreement before twenty-one (21) days has passed, she certifies that she does so voluntarily and without coercion.  If the Employee signs this Agreement before the Separation Date, she agrees to re-sign this Agreement on or after the Separation Date, thereby reaffirming her commitment to the terms and conditions of this Agreement through the Separation Date.

 

(g)  The Employee has seven (7) days following the date she signs this Agreement during which to revoke it, by notifying in writing Edward R. Dietz, Senior Vice President and General Counsel, 300 Fellowship Road, Mount Laurel, NJ 08054.  This Agreement will not be effective until the eighth (8th) day following the Company’s receipt of this Agreement signed by the Employee. No Separation Benefits described in Section 2 above shall be due, owing or paid by the Company unless and until this Agreement becomes effective (“Effective Date”). The Employee shall forfeit all Separation Benefits described in Section 2 above if she revokes this Agreement prior to the Effective Date.

 

6.  Confidentiality Obligations.  The Employee agrees that any and all information known to her to be proprietary and confidential information obtained by or disclosed to her at any time during her employment with the Company which is not generally known to the public, including, but not limited to, information concerning financing, marketing, methods of operation, policies, programs, procedures, and/or information regarding personnel, past or current litigation, clients, potential financing, or potential contract negotiations, shall not be knowingly disclosed, discussed, or revealed to any person or organization, without prior written approval of the Company or except as required by process of law. Proprietary and confidential information does not include either specific information that the Employee can demonstrate to have possessed prior to the disclosure by the Company, or information that is, or becomes generally known or available to the public through no fault, act or omission of the Employee.

 

  

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7.  Mutual non-disparagement.  The Employee agrees not to make any defamatory or disparaging statement, writing, or communication pertaining to the character, reputation, business practices or conduct of the Company or the Releasees.  The Company agrees to notify the following people of their obligation not to make any defamatory or disparaging statement, writing, or communication pertaining to the character, reputation, business practices or conduct of the Employee: Daniel Dyer, Edward Siciliano, Edward Dietz and all members of the Company’s Human Resources department and Board of Directors.  For the avoidance of doubt, the foregoing restrictions include any such statement, writing or communication made on social media.

 

8.  Return of Company Property.  The Employee represents and warrants that she will return to the Company all of the Company’s property of which she is aware to be in her possession, custody or control, including all confidential or information as described above (in whatever form, including without limitation electronic format, computer disk or paper copies), computers, keys, badge, automobile, phone cards, blackberries, mobile phones, passwords, credit cards, accessories, papers, notebooks, price lists, customer lists, samples, books, manuals, employee handbooks, lists, correspondence, as well as any other matters or materials which may involve the Company’s business, and all of the tangible and intangible property belonging or relating to the Company, by the Separation Date, or, if applicable, within five (5) business days following the Termination Date.  The Employee further represents and warrants that she shall not thereafter retain any copies, electronic or otherwise, of such property.

 

9.  Cooperation.  The Employee shall reasonably and in good faith cooperate with and assist the Company in any dispute or investigation in which the Company is involved and in which the Employee may have been involved.  Such cooperation and assistance shall be provided at a time and manner that are mutually and reasonably agreeable to the Employee and the Company, and shall include, but is not limited to, providing information, documents, and testimony, submitting to depositions, and generally cooperating to assist the Company.  The Company shall pay or reimburse the Employee for any reasonable out-of-pocket expenses incurred by the Employee in connection with such cooperation, and for all attorney’s fees and costs the Employee incurs in connections with same.

 

10.  Restrictive Covenants.

 

(a)  Non-competition.

 

(i)  During the Employee’s employment with the Company, and during the period of twelve (12) months commencing on the Separation Date (“Restrictive Period”), the Employee shall not directly or indirectly (whether as owner, partner, consultant, employee or otherwise) knowingly engage in or contribute her knowledge to any business or venture that competes, directly or indirectly, with the Company’s Business (as defined below) within any geography or area in which the Company conducted Business as of the Separation Date.  “Business” shall mean the “small ticket” equipment leasing and small business working capital lending business.

 

  

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(ii)  The Employee acknowledges that any violation of the provisions of this Section 10 may cause irreparable harm to the Company and that money damages may not be an adequate remedy for any such violation.  Therefore, the Company may seek injunctive or other equitable relief to prevent any actual or threatened breach of any of such provisions and to enforce such provisions specifically, by a New Jersey court of competent jurisdiction.  The remedies provided in this Section 10 are cumulative and shall not exclude any other remedies to which the Company may be entitled under this Agreement or law, and the exercise of a remedy under this Section 10 shall not be deemed an election excluding any other remedy.

 

(b)  Non-solicitation of employees. The Employee further agrees that, during the Restrictive Period, she shall not directly or indirectly through another entity (i) knowingly induce or attempt to induce any employee of the Company to leave the employ of the Company, or in any way knowingly interfere with the relationship between the Company and any employee, including, without limitation, inducing or attempting to induce any employee or group of employees to interfere with the Business or operations of the Company, or (ii) knowingly hire any person who was an employee of the Company at any time within the 12-month period prior to the date the Employee employs or seeks to employ such person.

 

(c)  Non-solicitation of customers. The Employee further agrees that during the Restrictive Period, she shall not directly or indirectly through another entity, knowingly solicit a customer or client of the Company to perform Business services that the Company rendered as of the Separation Date (“Services”), or assist others to do the same, for any person or entity: (i) for which the Employee provided Services as an employee of the Company during the two years prior to the Employee’s Separation Date; or (ii) that was a client or customer of the Company that received Services from the Company during the two years prior to the Employee’s Separation Date . Additionally, the Employee further agrees that during the Restrictive Period, she shall not directly or indirectly through another entity, induce or attempt to induce any dealer, manufacturer, supplier, distributor, franchisee, licensee or other business relation of the Company to cease doing business with the Company, or in any way interfere with the relationship between any such dealer, manufacturer, supplier, distributor, franchisee, licensee or business relation and the Company.

 

(d)  If any court determines that the foregoing restrictions are too broad or otherwise unreasonable under law, including with respect to time or geographical scope, such court is hereby requested and authorized by the Parties to revise the foregoing restriction to include the maximum restrictions allowable under law.  The Employee acknowledges, however, that this Section 10 has been negotiated by the Parties and that the geographical scope and time limitations, as well as the limitation on activities, are reasonable in light of the circumstances pertaining to the Business of the Company.

 

(e)  For the avoidance of doubt, if the Company terminates the Employee’s employment prior to the Separation Date for Cause, the Employee will not be bound by the restrictive covenants in this Section 10.

 

  

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11.  No Admission.  It is understood that this Agreement does not constitute an admission of any violation of law, and in fact all such claims or charges are expressly denied.  The Parties further agree that this Agreement shall not be admissible in any proceeding as evidence of any improper action by any Party.

 

12.  Section 409A.  It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and all regulations, guidance and other interpretive authority issued thereunder (“Section 409A”) so as not to subject the Employee to payment of any additional tax, penalty or interest imposed under Section 409A. The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest extent reasonably possible) the intended benefit payable to Executive.  Notwithstanding any other provision of this Agreement to the contrary, if any payment or benefit hereunder is subject to Section 409A:

 

(a)  and if the Employee is a specified employee (within the meaning of section 409A(a)(2)(B) of the Code) and if any such payment or benefit is required to be made or provided prior to the first day of the seventh month following the Employee’s separation from service or termination of employment, such payment or benefit shall be delayed until the first day of the seventh month following the Employee’s separation from service; and

 

(b)  the determination as to whether the Employee has had a termination of employment (or separation from service) shall be made in accordance with the provisions of Section 409A and the guidance issued thereunder without application of any alternative levels of reductions of bona fide services permitted thereunder.

 

Notwithstanding the foregoing, if the Payment Start Date can possibly span over two calendar years following the Separation Date in connection with an issue concerning execution of this Agreement, payment will begin in such second calendar year, regardless of when this Agreement is signed.

 

13.  General

 

(a)  In the event of a material breach of a term of this Agreement, the aggrieved Party may institute litigation to specifically enforce the terms of this Agreement to seek actual damages resulting from such breach. The Employee agrees that if she ever challenges the validity of this Agreement, she will return all money paid to her pursuant to Section 2 of this Agreement if required by a court to do so.

 

(b)  Upon a breach or violation of any of the release of claims or covenant not to sue provisions set forth in Section 4, confidentiality provision set forth in Section 6, non-disparagement provision set forth in Section 7 or non-competition and non-solicitation provisions set forth in Section 10 of this Agreement by the Employee, and due to the difficulties in calculating the damages that might be sustained (directly or indirectly) as a result of such breach or violation, if ordered by a court to do so, the Employee shall forfeit her right to any and all payments to be provided pursuant to Section 2 of this Agreement, or in the event she has already been paid such payments, and a court so orders, she shall return such payments to the Company.  The Company may, subject to any applicable defenses of the Employee, all of which are reserved, seek an order from a court of competent jurisdiction to withhold any payments otherwise due under this Agreement pending final adjudication of any such claim of material breach or violation.

 

  

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(c)  The Parties understand and agree that this Agreement will be construed in accordance with the laws of the State of New Jersey, except where preempted by federal law.

 

(d)  The Parties understand and agree that this Agreement sets forth the entire agreement between the Parties and supersedes any written or oral understanding, promise, or agreement directly or indirectly related to it, which is not referred to and incorporated here.

 

(c)        The Parties understand and agree that if any portion of this Agreement is found to be unenforceable, it will be severed (separated) from the rest of this Agreement and this will not affect the enforceability of the remaining provisions; provided, however, that if the provision of this Agreement applicable to Releasees is found to be unenforceable, the Agreement will be voidable at the option of the Company.

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the Employee hereby knowingly and voluntarily executes this Agreement as of the date set forth below.

 

	
LYNNE C. WILSON

	  
	  	  
	  	  
	
Signature

	  
	  	  
	
Date

	  
	  	  
	
Re-affirmation by Lynne C. Wilson (to be re-signed on or after the Separation Date)

	  	  
	 	 
	
Signature

	  
	  	  
	
Date

	  
	  	  
	  	  
	
MARLIN BUSINESS SERVICES CORP.

	  	  
	  	  
	
Signature

	  
	  	  
	
Title

	  
	  	  
	
Date

	  

 

 

 

 

 

 

 

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