Document:

Exhibit 4.28

 

LOAN AGREEMENT

 

This LOAN AGREEMENT (this “Agreement”), dated August 25, 2016, is made in Beijing, the People’s Republic of China (“PRC”) by and among:

 

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

 

And

 

Borrowers:

 

Richard Qiangdong Liu;

 

Pang Zhang;

 

Yayun Li

 

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

 

NOW, THEREFORE, the Parties hereby agree as follows through friendly negotiations:

 

1.                                      Loan

 

1.1                               Subject to the terms and conditions of this Agreement, the Lender agrees to provide a loan at an aggregate amount of one million (¥1,000,000.00) (the “Loan”) to the Borrowers, which Loan will be provided by Richard Qiangdong Liu, Pang Zhang and Yayun Li at the amount of RMB four hundred and fifty thousand (¥450,000.00), RMB two hundred and fifty thousand (¥250,000.00) and RMB three hundred thousand (¥300,000.00), respectively.

 

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

 

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

 

1.4                               The Borrowers confirm that they have received the Loan upon execution of this Agreement and used the Loan to pay for their investment in the Registered Capital of the Borrower Company.

 

 

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

 

2.                                      Term of Loan

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3.                                      Repayment of Loan

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4.                                      Obligations of the Borrowers

 

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

 

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

 

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

 

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

 

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

 

5.                                      Representations and Warranties

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.                                      Covenants from the Borrowers

 

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

 

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

 

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

 

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

 

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

 

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

 

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(6)                                 without prior written consent from the Lender, not to enter into any material agreement other than those executed in its ordinary course of business;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.2                               The Borrowers covenant during the term of this Agreement:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7.                                      Liabilities for Breach of Contract

 

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

 

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

 

8.                                      Notices

 

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

 

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

 

	
Address:
    	
***
    
	
 
    	
***
    
	
Phone:
    	
***
    
	
Fax:
    	
***
    
	
Attention:
    	
***
    

 

If to the Borrowers:

 

	
Richard   Qiangdong Liu
    
	
 
    	
 
    
	
Address:
    	
***
    
	
 
    	
***
    
	
Phone:
    	
***
    
	
Fax:
    	
***
    

 

	
Pang Zhang
    
	
 
    	
 
    
	
Address:
    	
***
    
	
 
    	
***
    
	
Phone:
    	
***
    
	
Fax:
    	
***
    

 

8

 

	
Yayun Li
    
	
 
    	
 
    
	
Address:
    	
***
    
	
 
    	
***
    
	
Phone:
    	
***
    
	
Fax:
    	
***
    

 

9.                                      Confidentiality

 

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

 

10.                               Applicable Law and Dispute Resolution

 

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

 

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

 

11.                               Miscellaneous

 

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

 

11.2                        This Agreement shall be effective as of the date of its execution.  The Parties agree and confirm that the effect of this Agreement shall retrospect to August 25, 2016.  Once effective, this Agreement will replace the Original Loan Agreement and expire until the Parties have performed their respective obligations under this Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

11.10                 This Agreement is made in three (3) originals with each Party holding one (1) original.  Each original has the same effect.

 

(No text below)

 

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(Signature Page)

 

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

 

	
Party A:   Beijing Jingdong Century Trade Co., Ltd.
    	
 
    
	
 
    	
 
    
	
/s/ Beijing Jingdong Century Trade Co., Ltd.
    	
 
    
	
 
    	
 
    
	
(Seal of Beijing Jingdong Century Trade   Co., Ltd.)
    	
 
    
	
By:
    	
/s/ Richard Qiangdong Liu
    	
 
    
	
 
    	
 
    
	
Party B:
    	
 
    
	
 
    	
 
    
	
Richard   Qiangdong Liu
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Richard Qiangdong Liu
    	
 
    
	
 
    	
 
    	
 
    
	
Pang Zhang
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pang Zhang
    	
 
    
	
 
    	
 
    	
 
    
	
Yayun Li
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pang Zhang
    	
 
    

 

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Schedule A

 

The following schedule sets forth all other similar agreements the registrant entered into with the relevant Chinese variable interest entity. Other than the information set forth below, there is no material difference between such other agreements and this exhibit.

 

	
VIE
    	
 
    	
Executing Parties
    	
 
    	
Loan Amount
    	
 
    	
Effective Date
    	
 
    	
Execution Date
    
	
Beijing Yuanyi Freight Forwarding Co., Ltd.
    	
 
    	
Lender: Beijing Jingdong Century Trade   Co., Ltd.

   Borrowers: Richard Qiangdong Liu, Yayun Li and Pang Zhang
    	
 
    	
Amount: an aggregate of RMB3,000,000.00 lent to the   Borrowers, of which RMB 1,350,000.00 will be provided to Richard Qiangdong   Liu, RMB 900,000.00 will be provided to Yayun Li and RMB 750,000 will be   provided to Pang Zhang
    	
 
    	
January 5, 2017
    	
 
    	
January 5, 2017
    
	
Jiangsu Jingdong Bangneng Investment Management   Co., Ltd.
    	
 
    	
Lender: Beijing Jingdong Century Trade   Co., Ltd.
    
   Borrowers: Richard Qiangdong Liu, Yayun Li and Pang Zhang
    	
 
    	
Amount: an aggregate of RMB80,000,000.00 lent to the   Borrowers, of which RMB 36,000,000.00 will be provided to Richard Qiangdong   Liu, RMB 20,000,000.00 will be provided to Pang Zhang and RMB 24,000,000 will   be provided to Yayun Li.
    	
 
    	
September 8, 2016
    	
 
    	
September 8, 2016
    
	
Suqian Limao Donghong Investment Management   Co., Ltd.
    	
 
    	
Lender: Suqian Yitong Information Technology   Co., Ltd.
    
   Borrowers: Richard Qiangdong Liu and Yayun Li
    	
 
    	
Amount: an aggregate of RMB1,000,000.00 lent to the   Borrowers, of which RMB 620,000.00 will be provided to Richard Qiangdong Liu   and RMB 380,000.00 will be provided to Yayun Li.
    	
 
    	
December 28, 2016
    	
 
    	
December 28, 2016
    
	
Beijing Andist Technology Co., Ltd.
    	
 
    	
Lender: Beijing Jingdong Century Trade   Co., Ltd.
    
   Borrowers: Richard Qiangdong Liu, Yayun Li and Pang Zhang
    	
 
    	
Amount: an aggregate of RMB2,000,000.00 lent to the   Borrowers, of which RMB 900,000.00 will be provided to Richard Qiangdong Liu,   RMB 500,000.00 will be provided to Pang Zhang and RMB 600,000 will be   provided to Yayun Li.
    	
 
    	
December 1, 2016
    	
 
    	
December 1, 2016
    
	
Shanghai Jingdong Cai’ao E-commercial Co., Ltd.
    	
 
    	
Lender: Beijing Jingdong Century Trade   Co., Ltd.
    
   Borrowers: Richard Qiangdong Liu, Yayun Li and Pang Zhang
    	
 
    	
Amount: an aggregate of RMB1,000,000.00 lent to the   Borrowers, of which RMB 4,500,000.00 will be provided to Richard Qiangdong   Liu, RMB 2,500,000.00 will be provided to Pang Zhang and RMB 3,000,000 will   be provided to Yayun Li.
    	
 
    	
December 20, 2016
    	
 
    	
December 20, 2016
    
	
Xi’an   Jingdong Xincheng Information Technology Co., Ltd.
    	
 
    	
Lender: Xi’an Jingxundi Supply Chain Technology   Co., Ltd.

 

Borrowers:   Richard Qiangdong Liu, Pang Zhang and Yayun Li
    	
 
    	
Amount:   an aggregate of RMB1,000,000.00 lent to the Borrowers, of which RMB450,000.00   will be provided to Richard Qiangdong Liu, RMB250,000.00 will be provided to   Pang Zhang and RMB300,000.00 will be provided to Yayun Li.
    	
 
    	
June 23,   2017
    	
 
    	
June 23,   2017
    
	
Suzhou   Guanyinghou Media Technology Co., Ltd.
    	
 
    	
Lender: Suqian Daxi Information Technology   Co., Ltd.

 

Borrower:   Qian Yang
    	
 
    	
Amount:   an aggregate of RMB10,000,000.00 lent to Qian Yang.
    	
 
    	
December 11,   2017
    	
 
    	
December 11,   2017
    

 

12Exhibit 4.38

 

Conditional Share Subscription Agreement

 

By and between

 

China United Network Communications Limited

 

and

 

Suqian Jingdong Sanhong Enterprise Management Center (Limited Partnership)

 

August 2017

 

 

This conditional share subscription agreement (“this Agreement”) was made as of August 16, 2017 by and between:

 

Party A: China United Network Communications Limited (“Issuer”)

 

Registered address: ***

 

Legal representative: ***

 

Party B: Suqian Jingdong Sanhong Enterprise Management Center (Limited Partnership) (“Subscriber”)

 

Registered address: ***

 

Representative appointed by executive partner: ***

 

(Collectively referred to as the “Parties” and individually referred to as a “Party”)

 

WHEREAS:

 

Party A intends to issue A shares through a non-public offering. Party B intends to subscribe such shares in accordance with this Agreement, and Party A agrees to issue such shares to Party B in accordance with this Agreement.

 

NOW THEREFORE, the Parties enter into this conditional share subscription agreement in accordance with laws and regulations such as the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China and the Contract Law of the People’s Republic of China, as well as regulatory documents issued by Chinese authority competent for securities regulation and administration.

 

Chapter I Definitions

 

Unless otherwise stated herein, the following terms shall have the meaning assigned to them herein:

 

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“A share” shall mean the common stock issued by Party A, dominated in RMB and having par value of RMB 1.00 when such stock is traded in RMB on the  exchange.

 

“This issuance” shall mean that Party A proposes to issue A shares to Party B and any other particular object through a non-public offering.

 

“Ending date of issuance” shall mean the date on which shares offered in this issuance are registered in the name of the subscriber with the Shanghai Branch of China Securities Depository and Clearing Corporation Limited.

 

“Signing date” shall mean the date on which the Parties sign this Agreement, which shall be the date written on the first page hereof.

 

“Effective date” shall mean the effective date of this Agreement, which shall be determined under paragraph 7.1 hereof.

 

“Payment date” shall mean the date on which Party B pays Party A the subscription price under paragraph 2.4.1 hereof.

 

“Pricing benchmark date” shall mean the date on which Party A announces its resolution of board of directors in connection with this issuance.

 

“China” shall mean the People’s Republic of China, and excludes Hong Kong, Macao and Taiwan regions for the purpose of this Agreement.

 

“CSRC” shall mean China Securities Regulatory Commission.

 

“SASAC” shall mean State-owned Assets Supervision and Administration Commission of the State Council.

 

“Exchange or SSE” shall mean Shanghai Stock Exchange

 

“SDCC” shall mean Shanghai Branch of the China Securities Depository and Clearing Corporation Limited.

 

“Business day” shall mean any day other than holiday or rest day specified by the government.

 

“Deposit interest” shall mean the interest on the deposit, which is calculated at the demand deposit interest rate of the bank over the same period, for the period from the date on which the deposit paid by Party B under paragraph 2.5.1 hereof is paid into the deposit account of Party A to either of (i) the date on which the subscription price is offset under paragraph 2.5.3 hereof; or (ii) the date on which Party A refunds the deposit to Party B under paragraphs 2.5.3 or 2.5.4 hereof.

 

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“RMB” shall mean Renminbi.

 

Chapter II Subscription

 

2.1                  Subscription method and number of subscribed shares

 

Party B intends to subscribe 732,064,421 A shares under this issuance with par value of RMB 1.00 in cash. If SASAC, CSRC, or the board of directors or shareholders’ meeting of the Issuer adjusts the number of shares under this issuance, the number of shares to be subscribed by Party B may be accordingly adjusted, provided that the Parties shall execute a written supplementary agreement through negotiations.

 

In the event that Party A, for the period from the pricing benchmark date to the ending date of issuance, engages in ex-dividend and ex-right conducts such as declaration and payment of share dividends, conversion into share capital or allotment of shares, the number of shares to be subscribed as mentioned above shall be adjusted in such way that the percentage of the number of shares held by Party B in Party A to the number of all outstanding shares of Party A remains unchanged after completion of this issuance.

 

2.2                  Subscription price and pricing method:

 

The pricing benchmark date on which Party A issues A shares to Party B shall be the date on which Party A announces its resolution of board of directors in connection with this issuance. The price at which Party B subscribes a share shall not be less than 90% of the traded average price of shares of Party A over the 20 trading days before the pricing benchmark date, and the final subscription price is determined to be RMB 6.83 per share. The traded average price of shares of Party A over the 20 trading days before the pricing benchmark date shall be calculated according to the following formula: Traded average price of shares of Party A over the 20 trading days before the pricing benchmark date = aggregate price of shares of Party A that are traded over the 20 trading days before the pricing benchmark date/aggregate number of shares of Party A that are traded over the said 20 trading days before the pricing benchmark date. The total subscription price Party B shall pay for the subscribed shares (“Subscription Price”) shall be calculated as follows: subscription price per share x the number of subscribed shares, i.e. RMB 4,999,999,995.43.

 

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If SASAC, CSRC, or the board of directors or shareholders’ meeting of the Issuer adjusts the subscription price per share or pricing method of shares under this issuance, the Parties shall negotiate price or pricing method for the subscription contemplated hereunder as soon as possible, and the price or pricing method of shares to be subscribed by Party B may be accordingly adjusted, provided that the Parties shall execute a written supplementary agreement through negotiations.

 

Notwithstanding the forgoing, if Party A, for the period from the pricing benchmark date to the ending date of issuance, engages in ex-dividend and ex-right conducts such as declaration and payment of cash dividends or share dividend, conversion into share capital or allotment of shares, the said subscription price per share shall be adjusted according to the following formula:

 

In case of declaration or payment of share dividends or conversion of capital reserve into share capital: P1 = P0/(1 + n);

 

In case of allotment of shares: P1 = (P0 + A x k)/(1 + k);

 

In case of combination of the above two items: P1 = (P0 + A x k)/(1 + n + k);

 

In case of declaration and payment of cash dividends: P1 = P0-D;

 

In case of combination of the above three items: P1 = (P0-D + A x k)/(1 + n + k).

 

where, P0 represents the valid subscription price per share prior to adjustment, n the percentage of issued bonus share or percentage of converting share capital, k allotment rate, A allotment price, D cash dividend per share that is paid, and P1 the valid subscription price per share after adjustment.

 

2.3                  Lock-up period:

 

Party B undertakes that it shall not assign, directly or indirectly, A shares subscribed by Party B under this issuance, and shares held by Party B in Party A as a result of Party A’s declaration and payment of share dividends or share capital conversion on the basis of A shares subscribed by Party B under this issuance, within 36 months from the ending date of issuance. Upon expiration of such lock-up period, any assignment of shares subscribed by Party B shall also comply with the relevant laws, regulations and regulatory documents.

 

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2.4                  Payment method:

 

2.4.1        After this agreement comes into force, and provided that representation, warranty and undertaking made by Party A in paragraph 3.2 are authentic and accurate in all material aspects as of the payment date, Party B shall, within 10 business days upon receipt of payment notice of Subscription Price from Party A, transfer full Subscription Price  (amount after deduction of deposit paid by Party B if Party B opts to offset the deposit against the subscription price under paragraph 2.5.3 hereof) into the account designated by the sponsor (lead underwriter). The sponsor (lead underwriter) shall, after capital verification and deduction of the relevant charges, transfer the remaining subscription price into the special account for raised fund designated by Party A.

 

2.4.2        If Party B predicts that it cannot fully pay the Subscription Price within the payment period, it shall immediately notify Party A. Where Party B fails to fully pay the Subscription Price within the payment period, Party A is entitled to determine to disqualify Party B for subscribing the whole or any part of shares covered by this issuance. If Party A determines to thoroughly disqualify Party B for the subscription, it may terminate this Agreement, and shall otherwise dispose of shares subscribed by Party B under paragraph 2.1 hereof, in which case the portion of subscription price paid by Party B (if any), after offset against the liquidated damages under paragraph 6.4 hereof, shall be refunded (without interest); and if Party A determines to partially disqualify Party B for the subscription, Party B shall be deemed to automatically waive the right to subscribe the shares related to the unpaid subscription price, in which case Party A has the right to otherwise dispose of such shares. In any of circumstances mentioned in the preceding sentence, Party B shall bear liability for breach of contract in accordance with paragraph 6.3 hereof.

 

2.5                  Deposit

 

2.5.1        The Parties agree that Party B shall, within 10 business days upon the signing date, pay the deposit equal to five percent of aggregate Subscription Price hereunder (i.e. RMB 249,999,999.78) to the following deposit account:

 

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Account name:
    	
 
    	
***
    
	
Account number:
    	
 
    	
***
    
	
Opening bank:
    	
 
    	
***
    

 

2.5.2        In the event that Party B fails to fully pay the deposit within the period set out in paragraph 2.5.1, and still fails to make such payment within 2 business days after written notice from Party A, Party A has the right to terminate this Agreement, disqualify Party B for subscription, and collect liquidated damages equal to ten percent of the aggregate Subscription Price from Party B.

 

2.5.3        For the paid deposit, the Parties agree that Party B has the option to either (1) apply such deposit to offset subscription price payable by Party B, in which case Party A shall, within 5 business days after Party B fully pays the remaining subscription price under paragraph 2.4.1, refund interest on such deposit to Party B; or (2) fully pay the subscription price under paragraph 2.4.1, in which case Party A shall, within 5 business days after such payment, refund such deposit and its interest to Party B. If Party B fails to fully pay the subscription price within the payment period, and Party A determines to wholly or partially disqualify Party B for subscription pursuant to paragraph 2.4.2, Party A shall refund deposit paid by Party B and interest on such deposit to Party B after being offset against the liquidated damages under paragraph 6.4 hereof.

 

2.5.4        Where this Agreement is terminated under paragraph 7.2 hereof, Party A shall, within 5 business days upon such termination, refund principal of deposit received from Party B and interest thereon unless the deposit and its interest are applied to offset liquidated damages payable by Party B pursuant to paragraph 6.4 hereof.

 

Chapter III Representation, warranty and undertaking

 

3.1                  On the signing date, effective date and payment date, Party B respectively represents, warrants and undertakes to Party A as follows:

 

3.1.1        Party B is lawfully incorporated and validly exists under the laws of China, and holds a valid business license.

 

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3.1.2        Party B owns any necessary corporate power and authority for executing this Agreement and fulfilling its obligations hereunder. In connection with subscription of shares covered by this issuance contemplated hereunder, Party B has, on the signing date, obtained any and all internal valid approvals required for executing and performing this agreement and effecting the subscription in accordance with its relevant internal rules and regulations.

 

3.1.3        There is no pending suit, action or legal proceeding against Party B which has a material adverse effect on its execution or performance of this agreement or obligations set out in this Agreement.

 

3.1.4        This Agreement shall, upon execution by Party B and effecting, shall be lawful and valid for, binding upon and enforceable against Party B.

 

3.1.5        A valid power of attorney or legal representative has proved that any person who signs this agreement for and on behalf of Party B has been fully authorized to execute this agreement for and on behalf of Party B.

 

3.1.6        Execution and performance of this Agreement will not conflict with or result in any violation of the following documents, or give rise to termination or cancellation of obligation of any third party, or accelerated exercise of right by any third party:

 

(1)                    constitutional documents of Party B;

 

(2)                    any material contract or agreement to which Party B is a party or which is binding upon Party B or its assets;

 

(3)                    any law of China applicable to Party B.

 

3.1.7        Financial capability of Party B is sufficient to fulfill its obligation of payment of subscription price hereunder.

 

3.1.8        Representations, warranties and undertakings made by Party B in this Agreement, and undertakings made by Party B in the Letter of Commitment and Letter of Commitment Regarding Funds for Subscription Party B issues to Party A for the purpose of subscription of shares under this issuance are authentic and correct as of the signing date, and remain authentic and correct as of the effective date and payment date.

 

3.1.9        Party B undertakes and agrees that Party B shall fully pay the funds for subscription under this issuance in accordance with paragraph 2.4.1 hereof.

 

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3.1.10               Party B undertakes that it shall notify Party A immediately after it is or should be aware of (i) any significant event that occurs to Party B and is connected with Party B’s information disclosed in the proposal for this issuance of Party A, or (ii) any event, circumstance and fact that may result in Party B’s breach of any representation, warranty or undertaking it makes hereunder or may cause any such representation, warranty or undertaking to be untrue in any material aspect.

 

3.1.11               Party B undertakes that any material Party B provides for Party A in the course of negotiation and consultation in connection with execution of this Agreement is authentic and accurate in any and all material aspects and does not contain any false record, misleading statement or significant omission.

 

3.1.12               Party B undertakes that it will coordinate with Party A and the sponsor in connection with application for the issuance, and that subject to necessary internal approval of Party B, it will provide the relevant materials promptly as required by the CSRC, SSE and SDCC.

 

3.2                  On the signing date, effective date and payment date, Party A respectively represents, warrants and undertakes to Party B as follows:

 

3.2.1        Party A is a corporate lawfully incorporated and validly existing under the laws of China, holds a valid business license and any qualification certificate that are necessary for business operation as explicitly provided by the laws and regulations, has not engaged in any illegal event influencing operation of the company since its date of incorporation, and possess the status of entity issuing shares through non-public offering as set forth in the laws, regulations, rules and regulatory documents currently in force.

 

3.2.2        Unless conditions to be satisfied as agreed herein, Party A owns any necessary corporate power and authority for executing this Agreement and fulfilling its obligations hereunder, and in connection with subscription of shares covered by this issuance contemplated hereunder, Party A, on the signing date, has obtained or will obtain any and all internal valid approvals required for executing and performing this agreement and effecting this issuance in accordance with its relevant internal rules and regulations.

 

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3.2.3        There is no pending suit, action or legal proceeding against Party A which has a material adverse effect on (1) its execution and performance of this Agreement or obligations set forth herein; or (2) its business operation.

 

3.2.4        This Agreement shall, upon execution by Party A and effecting, be lawful and valid for, binding upon and enforceable against Party A.

 

3.2.5        A valid power of attorney or legal representative has proved that any person who signs this agreement for and on behalf of Party A has been fully authorized to execute this Agreement for and on behalf of Party A.

 

3.2.6        Execution and performance of this Agreement will not conflict with or result in any violation of the following documents, or give rise to termination or cancellation of obligation of any third party, or accelerated exercise of right by any third party:

 

(1)                    constitutional documents of Party A;

 

(2)                    any material contract or agreement to which Party A is a party or which is binding upon Party A or its assets;

 

(3)                    any law of China applicable to Party A.

 

3.2.7        Shares covered by this issuance are shares listed and traded on SSE, and unless otherwise agreed herein, such shares are free from any pledge and any other security right and also not subject to right restrictions such as third-party right of first refusal and freezing. As of the ending date of issuance, unless otherwise provided by laws or unless restrictions explicitly agreed herein, Party B shall own the full and complete title of shares it actually subscribes.

 

3.2.8        Audited consolidated balance sheets that have been disclosed by Party A for the three fiscal years as of December 31, 2014, December 31, 2015 and December 31, 2016, and the audited consolidated profit statement and cash flow related thereto (including the corresponding notes and schedules): (i) are prepared in accordance with accounting standards of China that are constantly applicable, and (ii) fairly present the company’s consolidated financial position, operational results and cash flow as of the date of statement or for the period covering the date of statement in all material aspects.

 

3.2.9        Party A and, to reasonable knowledge of Party A, directors, supervisors and officers of Party A, comply with applicable laws and regulations of China currently in force in connection with bribery or corruption.

 

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3.2.10               Since its incorporation, Party A has been complying with current laws and regulations of China in connection with tax in all material aspects, and its business operation has never suffered from material adverse effect as a result of its overdue payment of tax.

 

3.2.11               As of December 31, 2016, no event, change or circumstance that would exert material adverse influence on Party A has occurred to Party A, and Party A has been normally carrying on its businesses in all material aspects.

 

3.2.12               Party A has complied with applicable laws and regulations in connection with disclosure of information in all material aspects, and information Party A has disclosed is true and accurate, and free from false record, misleading statement or significant omission.

 

3.2.13               Party A undertakes that any material Party A provides for Party B in the course of negotiation and consultation in connection with execution of this Agreement is authentic and accurate and does not contain any false record, misleading statement or significant omission.

 

3.2.14               Representations, warranties and undertakings made by Party A in this Agreement are authentic and correct as of the signing date, and remain authentic and correct as of the effective date and payment date.

 

3.2.15               Party A shall, after Party B pays the subscription price agreed herein, and through the security registration system of SDCC, register the shares Party B actually subscribes in the name of Party B to realize the delivery, in accordance with procedures of CSRC, SSE and SDCC. Upon completion of this issuance, Party B will be entitled to the complete shareholder’s right under such shares, and no encumbrance or restriction has been created onto such right (unless otherwise provided by the laws and regulations or unless otherwise stated herein).

 

3.2.16               Unless otherwise stated herein, if Party A, after 30 business days upon receipt of subscription price from Party B, fails in this issuance, and it has registered those shares actually subscribed by Party B in the name of Party B, Party A shall fully refund subscription price then already paid by Party B, and such subscription price shall bear interest at demand deposit interest rate of the bank over the same period from the date on which Party A actually receives such price.

 

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3.2.17               Party A shall promptly notify Party B of the following circumstances in writing: (i) any event, circumstance and fact that may result in Party A’s breach of any representation, warranty or undertaking it makes hereunder or may cause any such representation, warranty or undertaking to be untrue in any material aspect, and (ii) any fact, change, condition and circumstance which is known by Party A and will give rise to, or on the basis of reasonable anticipation, is very likely to result in failure to satisfy any condition set out in paragraph 7.1 hereof.

 

Chapter IV Settlement of dispute

 

4.1                  This Agreement shall be performed and constructed in accordance with the laws and regulations of China.

 

4.2                  Any dispute in connection with this Agreement shall be settled by the Parties through friendly negotiations. Either Party requesting to settle any such dispute shall give the other Party a dated notice, stating occurrence and nature of the dispute. In the event that any such dispute cannot be settled through negotiations within 90 days as of the date of the said notice, either Party is entitled to submit such dispute to China International Economic and Trade Arbitration Commission for arbitration in Beijing under its rules then in force. Arbitration award is final and binding upon the Parties.

 

4.3                  Commencement of arbitration proceeding shall not give rise to termination of this Agreement, and this Agreement shall remain in full force and effect until award is entered by arbitrators.

 

Chapter V Force majeure

 

5.1                  In the event that either Party hereto fails to fulfill its obligations hereunder in whole or in part as a result of any force majeure event (the term “force majeure event” means any event that is beyond control of the affected party, unforeseeable, unavoidable or insurmountable, occurs after the signing date, and that causes whole or partial performance of this Agreement on part of the party in question to become impossible or impractical objectively), fulfillment of such obligation shall be suspended as long as such force majeure event hinders such fulfillment.

 

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5.2                  The Party alleging to be affected by a force majeure event shall notify the other Party of the occurrence of such force majeure event in writing as soon as possible, and shall, within fifteen days upon occurrence of such event, provide the other Party with proper evidence of such event and its duration. The Party alleging that its performance of this Agreement objectively becomes impossible or impractical as a result of a force majeure event has the duty to take any and all reasonable efforts to eliminate or mitigate influence of such event.

 

5.3                  Upon the occurrence of a force majeure event, the Parties shall immediately determine how to implement this Agreement through friendly negotiations. The Parties shall resume fulfillment of their own obligations hereunder immediately after termination or elimination of a force majeure event or its influence.

 

Chapter VI Liabilities for breach

 

6.1                  Unless otherwise agreed by the Parties, any Party shall be liable for any and all losses incurred to the other Party due to its violation of representations, warranties or undertakings it makes in this Agreement, and any other form of representation, warranty and undertaking it makes with respect to this issuance.

 

6.2                  Unless otherwise agreed by the Parties, any Party shall be liable for any and all losses incurred to the other Party due to its violation of or failure to fulfill any or all its obligations hereunder, including but not limited to failure of Party B to fulfill obligation of subscription hereunder, and failure of Party A to issue shares to Party B and to register such shares as agreed. However, actual or whole performance of this Agreement becoming impossible due to adjustment in the scheme for this issuance made by supervision authority including CSRC shall not constitute breach event on part of Party A, in which case Party A shall not bear any legal liability and Party B shall not impose such demand as claim onto Party A in any way.

 

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6.3                  The Parties further agree that if Party B fails to fulfill its obligation of subscription hereunder in connection with this issuance, Party B shall be liable for liquidated damages to Party A. In the event that Party B fails to fully pay the subscription price under paragraph 2.4.1 hereof, it shall pay Party A the liquidated damages equal to (full subscription price payable by Party B hereunder - subscription price actually paid by Party B) x 100%. For avoidance of doubt, where Party B pays a portion of subscription price, and Party A determines to thoroughly disqualify Party B for subscription under paragraph 2.4.2 hereof, and for the sole purpose of calculating the liquidated damages set out herein, that portion of subscription price paid by Party B shall be still be deemed as “subscription price actually paid by Party B” under this provision.

 

6.4                  Liquidated damages agreed in paragraph 6.3 hereof shall be paid within 10 business days as of the date on which Party A issues the written notice to Party B; and deposit paid by Party B and interest accrued thereon, and subscription price shall be applied to offset liquidated damages payable by Party B prior to refund by Party A (deposit and deposit interest shall be firstly applied to offset liquidated damages), and if the said deposit, deposit interest and subscription price are insufficient to cover the liquidated damages, Party B shall pay the amount difference.

 

6.5                  Party B’s payment of liquidated damages under paragraphs 6.3 and 6.4 hereof shall not relieve Party B from its compensation liability under paragraphs 6.1 and 6.2 hereof.

 

6.6                  Liquidated damages and amount of other compensation borne by any Party shall in no event exceed fifteen percent of the subscription price agreed herein.

 

Chapter VII Formation, coming into force and termination

 

7.1                  This Agreement is formed after being signed and affixed with common seals by legal representatives or duly-authorized representatives of the Parties. Provisions of this Agreement, other than paragraph 2.5, Chapter III, Chapter IV, Chapter V, paragraph 6.1 and paragraph 6.6, Chapter VII and Chapter VIII which shall come into force as of the date of formation of this Agreement, shall come into force only if the following conditions are all satisfied, and the completion dates of the following events shall be effective date of this Agreement, whichever comes later:

 

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7.1.1        This agreement has been executed by the Parties;

 

7.1.2        This issuance has been approved by the board of directors and shareholders’ meeting of Party A;

 

7.1.3        This issuance has been approved by SASAC;

 

7.1.4        This issuance has been approved by CSRC.

 

7.2                  This agreement shall terminate if:

 

7.2.1        this agreement is terminated due to arbitration award;

 

7.2.2        the Parties unanimously agree to terminate this agreement, for which the Parties sign a written agreement;

 

7.2.3        this agreement is terminated when its performance becomes impossible due to any force majeure;

 

7.2.4        If SASAC, CSRC, or the board of directors or shareholders’ meeting of the Issuer adjusts subscription price or pricing method of shares under this issuance, and the Parties fails to reach consensus and sign a written supplementary agreement in connection with the subscription price or pricing method within 30 days as of the date on which such adjustment or decision is made, this agreement shall automatically terminate upon expiration of the said 30 days, in which case neither Party shall bear liability for breach;

 

7.2.5        Where this issuance is still not completed on the expiration date of 12 months following execution of this agreement (“Final Deadline Date”), either Party is entitled to notify the other Party of terminating this Agreement in writing, provided that if failure to complete this issuance on and before the final deadline date is mainly caused by material breach of this Agreement on part of any Party and if such Party fails to promptly take effective remedial actions, such Party is not entitled to the right of unilaterally terminating this Agreement as set forth in this provision;

 

7.2.6        Other circumstances in which this Agreement shall terminate as required by laws.

 

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Chapter VIII Miscellaneous

 

8.1                  Each Party shall bear its payable taxes and duties (including stamp duty and other taxes) incurred or caused by this issuance in accordance with applicable laws of China. If payment of any such tax and duty is not provided in the applicable law, the incurring Party shall be liable for such tax and duty.

 

8.2                  Unless otherwise required by applicable laws, listing rules of SSE or competent governmental authority, after execution of this Agreement, either Party is obliged to keep matters hereunder and trade secret and other documentations of the other Party it knows due to this issuance in confidence without prior written exemption of the other Party, whether this issuance contemplated hereunder is completed or not, and whether this agreement is terminated, canceled, withdrawn, deemed to be invalid or has been performed or not.

 

8.3                  Any notice or correspondence specified under or connected with this Agreement shall be in writing, and shall be delivered by hands, facsimile or express mail service. Unless specially indicated in the notice issued by the other Party, notice to each Party shall be given to the address and contact person set forth below:

 

Party A: China United Network Communications Limited

Address: ***

Addressee: ***

Tel: ***

Email: ***

 

Party B: Suqian Jingdong Sanhong Enterprise Management Center (Limited Partnership)

Address: ***

Addressee: ***

Phone: ***

Email: ***

 

15

 

8.4                  Any amendment to this Agreement shall be invalid unless agreed and signed by the Parties in writing. The Parties agree that if CSRC directs to adjust contents of this Agreement and/or other issues connected with this issuance in the course of its review of this issuance, the Parties shall make their commercially reasonable efforts to negotiate with each other, sign a written supplementary agreement provided that they reach a consensus, and shall provide coordination to perform the relevant internal and external approval procedures (if needed).

 

8.5                  If any provision of this Agreement, upon its execution, is held by an arbitration agency with jurisdiction to be invalid or unenforceable, or becomes invalid or unenforceable due to legislation after upon execution of this Agreement, the remaining provisions of this Agreement shall not be affected.

 

8.6                  Either Party shall not transfer any of its rights and obligations under this Agreement without prior written consent of the other Party.

 

8.7                  Failure of either Party to exercise any of its rights hereunder within the time limit agreed herein shall neither constitute or be constructed as waiver of such right nor affect future exercise of such right on part of such party in any aspect.

 

8.8                  The headings in this Agreement are inserted for convenience only and shall not be used in any other construction intended to affect contents of this Agreement.

 

8.9                  This Agreement is written in Chinese, and this Agreement is signed in eight originals, each of which shall have the same legal effects. Each Party shall hold one original respectively, and the remaining originals shall be retained for the purpose of governmental approval, registration or filing.

 

[Intentionally left blank below]

 

16

 

(This page is intentionally left bank and it is execution page of the Conditional Share Subscription Agreement by and between China United Network Communications Limited and Suqian Jingdong Sanhong Enterprise Management Center (Limited Partnership)).

 

Party A: China United Network Communications Limited (seal)

 

	
Legal   representative or duly-authorized representative: 
    	
/s/ WEN Ningrui
    	
 
    

 

17

 

(This page is intentionally left bank and it is execution page of the Conditional Share Subscription Agreement by and between China United Network Communications Limited and Suqian Jingdong Sanhong Enterprise Management Center (Limited Partnership)).

 

Party B: Suqian Jingdong Sanhong Enterprise Management Center (Limited Partnership) (seal)

 

Executive partner: Jiangsu Jingdong Bangneng Investment Management Co., Ltd.

 

	
Authorized   representative: 
    	
/s/ Zhang Fang
    	
 
    

 

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