Document:

qtt-ex427_164.htm

 

 

 

Exhibit 4.27

 

Share Pledge Agreement

 

THIS Share Pledge Agreement (this “Agreement”) is executed on September 29, 2019 by and among the following parties in Shanghai, the People’s Republic of China (the “PRC” or “China”):

 

	
1.
	
Wanting Xu, Chinese, ID No.: [REDACTED];

 

	
2.
	
Min Gao, Chinese, ID No.: [REDACTED] (together with Wanting Xu hereinafter referred to respectively or collectively as “Pledgor” or “Pledgors” ); 

 

	
3.
	
Shanghai Quyun Internet Technology Co., Ltd., a limited liability company established and validly existing under PRC law with its registered address at [REDACTED] (the “Pledgee”); and

 

	
 
	
4.
	
Anhui Zhangduan Internet Technology Co., Ltd., a limited liability company established and validly existing under PRC law with its registered address at [REDACTED] (“Company”).

 

In this Agreement, the above parties hereto may be individually referred to as a “Party” and collectively referred to as the “Parties”.

 

Whereas:

 

	
1.
	
The Pledgors are registered shareholders of the Company, collectively hold 100% of the Company’s equity interests. As of the date of this Agreement, the respective amount of capital contribution and proportion of shareholding of the Pledgors in the Company are as stated in Schedule I.

 

	
2.
	
Pursuant to the Exclusive Option Agreement (including the Agreement itself and any of its amendments or restatements, hereinafter referred to as the “Option Agreement”) executed by and among the Parties on the date of this Agreement, the Pledgors and/or the Company shall, as per requested by the Pledgee and to the extent permitted under the PRC law, transfer all or part of the equity interest held by the Pledgors and/or all or part of the assets in the Company to the Pledgee and/or any other entity or individual designated by the Pledgee.

 

	
3.
	
Pursuant to the Loan Agreement (including the Agreement itself and any of its amendments or restatements, hereinafter referred to as the “Loan Agreement”) executed by the Pledgors and the Pledgee on the date of this Agreement, the Pledgee agrees to provide loans to the Pledgors in accordance with the terms and conditions stipulated in the Loan Agreement.

 

	
4.
	
Pursuant to the Voting Rights Proxy Agreement (including the Agreement itself and any of its amendments or restatements, hereinafter referred to as the “Voting Rights Proxy Agreement”) executed by the Parties on the date of this Agreement, the Pledgors have irrevocably and fully authorized the person appointed by the Pledgee at that time to represent the Pledgors to exercise all their voting rights as 

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shareholders in the Company.

 

	
5.
	
Pursuant to the Exclusive Technical and Consulting Services Agreement (including the Agreement itself and any of its amendments or restatements, hereinafter referred to as the “Consulting Services Agreement”) executed by the Company and the Pledgee on the date of this Agreement, the Company has exclusively engaged the Pledgee to provide the Company relevant technical support and consultation services, and has agreed to pay corresponding service fees to the Pledgee for such provision of services.

  

	
6.
	
To secure the performance of the Pledgors and the Company of the Contractual Obligations (as defined below) and the repayment of the Secured Indebtedness (as defined below), the Pledgors agree to pledge all of their equity interests in the Company in favor of the Pledgee, and grant the Pledgee the first priority right of pledge.

 

By friendly negotiation, the Parties agree as follows:

 

	
1.
	
Definitions

 

Unless otherwise provided herein, the following words and terms shall have the respective meanings set forth below:

 

	
 
	
1.1
	
“Contractual Obligations” means all Contractual Obligations of the Pledgors and/or the Company under the Loan Agreement, the Consulting Service Agreement, the Option Agreement, the Voting Rights Proxy Agreement and this Agreement (and any of its amendments or restatements thereof).

 

	
 
	
1.2
	
“Pledge” means the security interest granted by the Pledgors to the Pledgee in accordance with Article 2 of this Agreement, which refers to the right to be compensated on a preferential basis with the conversion, auction or sales price of the equity interest enjoyed by the Pledgee.

 

	
 
	
1.3
	
“Transaction Agreements” means the Loan Agreement, the Option Agreement, the Voting Rights Proxy Agreement and the Consulting Service Agreement.

 

	
 
	
1.4
	
“Secured Indebtedness” includes all service fees as well as the interests incurred accordingly that shall be payable to the Pledgee and the repayment of the loan along with the interests incurred that shall be made by the Pledgors to the Pledgee under the Transaction Agreements; the amount of all direct, indirect and predictable loss of benefits raising out of any Event of Default (as defined below) caused by the Pledgors and/or the Company as determined by the Pledgee on its sole discretion (to the extent permitted by PRC law) which shall be fully binding on the Pledgors and the Company; all expenses of the Pledgee incurred from forcing the the Pledgors and/or the Company to perform the Contract Obligations, and fees and expenses for the enforcement of the Pledge (including but not limited to the legal fees, arbitration fees, costs of assessment and auction of the Pledged Interests 

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and etc.).

 

	
 
	
1.5
	
“Pledged Interests” means all of the Company’s equity interests legally owned by the Pledgors as of the date of effectiveness of this Agreement which shall, pursuant to this Agreement, be pledged to the Pledgee as collateral security for the performance of the Contractual Obligations (as specifically stated in Schedule I).

 

	
 
	
1.6
	
“Term of the Pledge” refers to the term set forth in Article 3 of this Agreement.

 

	
 
	
1.7
	
“Event of Default” refers to any of the circumstances listed in Article 7 of this Agreement. 

 

	
 
	
1.8
	
“Notice of Default” refers to the notice issued by the Pledgee in accordance with this Agreement declaring an Event of Default.

 

	
2.
	
Pledge of Equity Interests

 

Pursuant to this Agreement, the Pledgors hereby agree to pledge, all of the equity interest which are legally held and are entitled to be disposed by the Pledgors (collectively representing 100% equity interest in the Company) to the Pledgee, as a jointly liability guarantee to secure the performance of the Contractual Obligations and the repayment of the Secured Indebtedness of the Pledgors and the Company. 

 

	
3.
	
Term of the Pledge

 

	
 
	
3.1
	
This Pledge shall become effective on such date when the pledge of the equity interest contemplated herein is registered with competent authority of Administration for Industry and Commerce (“AIC”). The Pledge shall continue until all Contractual Obligations have been fully performed by the Pledgors and the Company and all Secured Indebtedness have been paid in full, or all of the Transaction Agreements have been terminated or turned invalid, or the Contractual Obligations have been terminated for legal reasons.

 

	
 
	
3.2
	
The Pledgors and the Company shall (1) record the Pledge made under this Agreement on the Company’s register of shareholders when appropriate after the execution of this Agreement, and (2) file the Pledge with the appropriate AIC to complete the pledge registration of the Pledged Interests under this Agreement after the execution of this Agreement when appropriate. Such registration of Pledged Interests shall be completed within 20 working days after the date of this Agreement or other time period agreed by the Parties, and the certification documents concerning the registration with AIC shall be delivered to and kept by the Pledgee. The Parties jointly confirm that, in order to complete the procedure of pledge registration with AIC, the Parties and other shareholders of the Company shall submit this Agreement, or, a Pledge Contract executed in the way complying with the requirements of the AIC of the registered place of the 

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Company in which truly reflects the information of the Pledge under this Agreement (“Pledge Agreement for AIC Registration”) to AIC. Matters that are not specified in the Pledge Agreement for AIC Registration shall be subject to the provisions of this Agreement. The Pledgors and the Company shall, as per required by relevant AIC and pursuant to the PRC laws and regulations, submit all necessary documents and complete all necessary procedures to ensure that the Pledge will be registered as soon as possible after filing the application.

 

	
 
	
3.3
	
In case of any Event of Default, the Pledgee shall be entitled to dispose the Pledged Interests in accordance with Article 8 of this Agreement.

 

	
 
	
3.4
	
Within the Term of Pledge, the Pledgors may, after obtaining prior consent from the Pledgee, receive dividends, bonuses or other profits generated from the Pledged Interests. The Pledgors agree that during the duration of the pledge of the equity interests, the Pledgee shall have the right to receive any dividend or bonus generated from the Pledged Interests. The Company shall pay such portion of fund to the bank account designated by the Pledgee.

 

	
4.
	
Custody of Pledge Certificate

 

Within the Term of Pledge set forth in this Agreement, the Pledgors shall deliver the capital contribution certificate for the equity interest in the Company and the register of shareholders containing the Pledge to the Pledgee for the Pledgee’s custody of such items. The Company shall not set up any register of shareholders other than the aforesaid one. The Pledgors shall deliver the above-mentioned capital contribution certificate and the register of shareholders to the Pledgee on the date of this Agreement, and the Pledgee shall maintain custody of such items throughout the entire Term of Pledge.

 

	
5.
	
Representations and Warranties of the Pledgors

 

	
 
	
5.1
	
The Pledgors are the legal owners of the Pledged Interests and there is no existing dispute in relation to the ownership of the Pledged Interests.

 

	
 
	
5.2
	
The Pledged Interests are free to be pledged and transferred according to laws, and the Pledgors have full rights and authorities to pledge the Pledged Interests to the Pledgee in accordance with the provisions of this Agreement.

 

	
 
	
5.3
	
The Pledgors have not placed any right of pledge or other security interests on the Pledged Interests except for the Pledge.

 

	
 
	
5.4
	
The Pledge under this Agreement constitutes the first priority right of pledge placed on the Pledged Interests.

 

	
 
	
5.5
	
The Pledgors and the Company warrant to the Pledgee that the above-mentioned representations and warranties are true and correct and will be completely complied with in any case before the Contract Obligations have been fully performed or the Secured Indebtedness has been completely repaid. 

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6.
	
The Pledgors’ Covenants and Acknowledgements

 

	
 
	
6.1
	
The Pledgors hereby covenant to the Pledgee, that during the term of this Agreement, the Pledgors shall:

 

	
 
	
6.1.1
	
not transfer the Pledged Interests or create or permit the existence of any guarantee or other encumbrance on the Pledged Interests without prior written consent from the Pledgee, except for the performance of the Option Agreement;

 

	
 
	
6.1.2
	
comply with and execute all the laws and regulations applicable to the pledge of rights, present the notice, order or recommendation issued or promulgated by relevant competent authorities regarding the Pledge to the Pledgee within 5 days upon receipt such item, and comply with the aforementioned notice, order or recommendation, or, as per reasonable requested or consent of the Pledgee, submit objections and representations with respect to the aforementioned matters;

 

	
 
	
6.1.3
	
promptly notify the Pledgee of any event or notice received by the Pledgors that may have an impact on the Pledgee’s rights to the equity interests or any portion thereof, and any event or notice received by the Pledgors that may have an impact on any warrant, obligation of the Pledgors or their performance of this Agreement.

 

	
 
	
6.2
	
The Pledgors agree that the right enjoyed by the Pledgee under the terms of this Agreement with respect to the Pledge shall not be interrupted or harmed by the Pledgors or any successor or representative of the Pledgors or any other person through any legal proceeding. 

	
 
	
6.3
	
The Pledgors guarantee the Pledgee that, in order to protect or perfect the security interests granted under this Agreement securing the payment of the consulting and service fees under the Transaction Agreements, the Pledgors agree to execute in good faith and to cause other parties who have an interest in the Pledge to execute all certificates, agreements, and/or perform and cause other parties who have an interest in the Pledge to perform as required by the Pledgee. The Pledgors further agree to facilitate the exercise by the Pledgee of its rights and authorities granted thereto by this Agreement, and to enter into all relevant documents regarding the ownership of equity interest with the Pledgee or designees of the Pledgee (individuals/legal entities). The Pledgors agree to provide the Pledgee within a reasonable time with all notices, orders and decisions regarding the Pledge that are required by the Pledgee.

	
 
	
6.4
	
The Pledgors guarantee the Pledgee that the Pledgors will comply with and perform all the guarantees, promises, agreements, representations and conditions under this Agreement. If the Pledgors is not performing or fail to fully perform its guarantees, promises, agreements, representations and conditions, the Pledgors shall compensate the Pledgee for all losses suffered 

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thereby.

 

	
7.
	
Event of Default

 

	
 
	
7.1
	
Each of the following circumstances shall be considered as Event of Default:

 

	
 
	
7.1.1
	
Any breach of any of the Pledgors and/or the Company of any Contractual Obligation under the Loan Agreement, the Option Agreement, the Voting Rights Proxy Agreement, the Consulting Service Agreement, and/or this Agreement (and any amendment or restatement thereof);

 

	
 
	
7.1.2
	
Except for Article 6.1.1 of this Agreement, any waiver of the Pledgors of the Pledged Interests or any transfer or intended transfer of the Pledged Interests without written consent from the Pledgee;

	
 
	
7.1.3
	
Any external loan, guarantee, compensation, commitment or other payment liability of any of the Pledgors and/or the Company is required to be repaid or performed in advance, or is expired but cannot be repaid or performed as scheduled, which, at Pledgee’s discretion, may be considered materially and adversely affect the ability of the Pledgors and/or the Company to perform its obligations hereunder;

 

	
 
	
7.1.4
	
Any occurrence of any material adverse change to the property of the Pledgors and/or the Company, which, at Pledgee’s discretion, may be considered materially affect the ability of the Pledgors and/or the Company to perform its obligations hereunder; and

 

	
 
	
7.1.5
	
Occurrence of any event that prevents the Pledgee to exercise its right with respect to the Pledge.

 

	
 
	
7.2
	
Upon notice or awareness of the occurrence of any circumstance or event that may lead to the above-mentioned circumstances described in Article 7.1, the Pledgors shall immediately notify the Pledgee in writing accordingly.

 

	
8.
	
Exercise of the Pledge

 

	
 
	
8.1
	
The Parties hereby agree that in the Event of Default, the Pledgee shall have the right to exercise all the rights and authorities of remedy for breach of contract enjoyed under the PRC laws, Transaction Agreements and this Agreement, including (but not limited to) auction or sale of the Pledged Interests and to be compensated in priority from what it gains after giving written notice to the Pledgors. The Pledgee is not responsible for any loss caused by its lawful and reasonable exercise of such rights and authorities.

 

	
 
	
8.2
	
Before the full payment of the consultation service fees and other fees under the Transaction Agreements has been made, the Pledgors shall not transfer the Pledge or the equity interest held in the Company without the Pledgee’s 

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written consent.

 

	
 
	
8.3
	
For reasonable expenses incurred when the Pledgee exercises any or all of the above-mentioned rights and authorities, the Pledgee shall have the right to deduct such expenses from the funds obtained from the exercise of its rights and authorities, based on the actual situation.

	
 
	
8.4
	
The fund obtained from the exercise of the Pledgee of its rights and authorities shall be processed in the following order: 

 

Firstly, to pay for all expenses (including paying the emoluments of its attorneys and agents) arising from the disposal of the Pledged Interests and the exercise of the Pledgee of its rights and authorities;

 

Secondly, to pay payable taxes arising from the disposal of the Pledged Interests;

 

Thirdly, repay the Secured Indebtedness to the Pledgee;

 

The remaining fund after the deduction of the aforesaid items shall be returned by the Pledgee to the Pledgors or other person who enjoyed the right to the fund under relevant laws and regulations, or be deposited to the local notary office of the location of the Pledgee (any cost generated arising from such deposit shall be undertaken by the Pledgee).

 

	
 
	
8.5
	
The Pledgee has the right to appoint its legal counsels or other agents to exercise the Pledge on its behalf, and the Pledgor or the Company shall not raise any objections.

 

	
 
	
8.6
	
When the Pledgee disposes the Pledge in accordance with this Agreement, the Pledgors and the Company shall provide necessary assistance to enable the Pledgee to realize its Pledge.

 

	
 
	
8.7
	
The Pledgee shall be entitled to choose to, simultaneously or successively, exercise any of the remedies it enjoys for breach of contract. The Pledgee is not required to exercise any other remedy for breach of contract before exercising the right to auction or sell the Pledged Interests under this Agreement. The Pledgors or the Company does not have the right to challenge the Pledgee whether to exercise part of the Pledge or the sequential order of the exercise of the Pledge.

 

	
9.
	
Liability of Breach

 

	
 
	
9.1
	
The Pledgee has the right to terminate this Agreement and/or require the the Pledgor and the Company to fully indemnify the Pledgee if the Pledgor or the Company substantially breach any articles hereof; this article 9 shall not preclude any other rights of the Plegee hereunder.

 

	
 
	
9.2
	
Unless otherwise provided for by applicable laws, the Pledgor or the Company have no right to terminate or cancel this Agreement.

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10.
	
Assignment

 

	
 
	
10.1
	
The Pledgors shall not grant or transfer its rights and obligations under this Agreement without prior consent from the Pledgee.

 

	
 
	
10.2
	
This Agreement shall be binding on the Pledgors, their successors and authorized assignees, and shall be valid to the Pledgee and each of its successors and assignees.

 

	
 
	
10.3
	
The Pledgee may assign all or any of its rights and obligations under the Transaction Agreements to its designees (individuals/legal entities) at any time. In such case, the assignee shall have the rights and obligations that the Pledgee enjoys and undertakes under this Agreement, as if it was the original party to this Agreement. When the Pledgee assigns the rights and obligations under the Transaction Agreements, the Pledgors shall, upon the Pledgee’s request, execute relevant agreements and/or documents relating to such assignment.

 

	
 
	
10.4
	
In the event of a change of the Pledgee due to the assignment, at the request of the Pledgee, the Pledgors shall execute a new pledge agreement with the new Pledgee on the same terms and conditions as this Agreement, and shall register such pledge with the relevant AIC.

 

	
 
	
10.5
	
The Pledgors shall strictly comply with the provisions of this Agreement and other relevant agreements jointly or respectively executed by the Parties, including the Exclusive Option Agreement and the Power of Attorney granted to the Pledgee, fulfill the obligations under each agreement, and refrain from any action/omission that may affect the effectiveness and enforceability of the Agreement. Any remaining right of the Pledgors with respect to the Pledged Interests hereunder shall not be exercised by the Pledgors except in accordance with written instructions from the Pledgee.

 

	
11.
	
Termination

 

	
 
	
11.1
	
Upon fully fulfilled its obligations hereunder and paid all the guaranteed debts, the Pledgor shall have the right to require the Pledgee to release the Pledge under this Agreement, within a reasonable time period, and the Pledgee shall taje necessary actions to deregister the Pledge with the relevant AIC.

 

	
 
	
11.2
	
Articles 9, 13, 14 and this article 11.2 will survive the termination of the Agreement.

 

	
12.
	
Service fees and other expenses

 

All fees and actual expenses relating to this Agreement, including but not limited to legal fees, costs of production, stamp duties, and any other tax, fee and etc. shall be borne by the Company.

 

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13.
	
Confidentiality

 

Each Party hereto acknowledges and confirms to treat any oral or written material relating to this Agreement, the content of this Agreement and exchanged among for preparing or performing this Agreement as confidential information. Each party shall maintain the confidentiality of all such confidential information and shall not disclose any confidential information to any third party without the written consent of the other Parties, except for (a) any information is or will be acknowledged by the public (provided that it is not the result of a disclosure to the public without authorization made by a party who receives the confidential information); (b) any information required to disclose under the applicable laws and regulations, stock trading rules, or orders of government departments or courts; or (c) information required to be disclosed by any Party to its shareholders, investors, legal or financial counsels regarding the transaction stated in this Agreement, and such shareholders, legal or financial counsels shall also be required to comply with the confidentiality duties similar to the duties contained under this clause. Any disclosure by staff or agencies hired by a Party should be deemed as a disclosure by such party and such party shall be liable for breach of this Agreement. This article shall survive regardless of the termination of this Agreement for any reason. 

 

	
14.
	
Applicable Law and Dispute Resolution

 

	
 
	
14.1
	
The execution, effectiveness, interpretation, implementation, amendment and termination of this Agreement and the resolution of disputes shall be governed by PRC law.

 

	
 
	
14.2
	
Any dispute arising from interpretation and implementation of this Agreement shall be firstly solved by the Parties through friendly negotiation. If the dispute cannot be resolved within 30 days after the written notice sent from one party to the other for negotiation and resolution, any party may submit the relevant dispute to China International Economic and Trade Arbitration Commission for arbitration in accordance with the arbitration rules then effective. The arbitration shall be conducted in Shanghai and the language used is Chinese. The award of the arbitral tribunal shall be final and binding on the Parties.

 

	
 
	
14.3
	
When any dispute arising from interpretation and implementation of this Agreement occurs and when any dispute is under arbitration, except for the matters under dispute, the Parties shall continue to exercise their other rights under this Agreement and perform their other obligations under this Agreement.

 

	
15.
	
Notices

 

	
 
	
15.1
	
All notices and other communications required or sent under this Agreement shall be delivered personally, registered post, postage paid or business express service or fax to the Party’s following address. Each notice shall also be delivered by email. The dates on which the notices shall be deemed to have been effectively delivered shall be determined as follows:

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15.2
	
For notices delivered by personal delivery, express service or registered post, postage paid, the effectively delivered date shall be deemed as the date of delivery or refusal at the address specified for notices.

 

	
 
	
15.3
	
For the notices delivered by fax, the effectively delivered date shall be deemed as the date of delivered successfully. (as evidenced by an automatically generated confirmation of transmission)

 

	
 
	
15.4
	
For the purpose of notice, the addresses of the Parties are as follows:

 

The Pledgors:

Wanting Xu

Address: [REDACTED]

Recipient: [REDACTED]

Mobile: [REDACTED]

 

Min Gao

Address: [REDACTED]

Recipient: [REDACTED]

Mobile: [REDACTED]

 

The Pledgee: Shanghai Quyun Internet Technology Co., Ltd.

Address: [REDACTED]

Recipient: [REDACTED]

Mobile: [REDACTED]

 

The Company: Anhui Zhangduan Internet Technology Co., Ltd.

Address: [REDACTED]

Recipient: [REDACTED]

Mobile: [REDACTED]

 

	
 
	
15.5
	
Any Party may at any time send notice to other Parties in accordance with this Article to change its address for the purpose of receiving notice.

 

	
16.
	
Severability

 

If one or several provisions of this Agreement are found to be invalid, illegal or unenforceable according to any law or regulation in any aspect, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or damaged in any aspect. The Parties shall strive for replacing those invalid, illegal or unenforceable provisions with effective provisions within the highest limit of permission of laws and expectation of the Parties by sincerely negotiation, and the economic effects of such effective provisions shall as close as possible to that of those invalid, illegal or unenforceable provisions.

 

	
17.
	
Effectiveness

 

	
 
	
17.1
	
This Agreement shall become effective upon execution of the Agreement by all Parties.

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17.2
	
Any amendment, supplement or change to this Agreement shall be made in writing and shall become effective upon completion of the governmental filing procedures (if applicable) after execution or affixing with seals of the Parties.

 

	
 
	
17.3
	
This Agreement is written in Chinese in four (4) originals. Each Party of this Agreement shall have one (1) and all the originals shall have equal legal validity.

 

 [The remainder of this page intentionally left blank.]

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 [Signature Page]

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

 

Wanting Xu

Signature: /s/ Wanting Xu   

 

 

Min Gao 

Signature: /s/ Min Gao      

 

 

 

Shanghai Quyun Internet Technology Co., Ltd.

 (Seal)

 

Signature: /s/ Fei Shen      

Name: Fei Shen

Title: Legal Representative

 

 

Anhui Zhangduan Internet Technology Co., Ltd.

 (Seal)

 

Signature: /s/ Mengdie Hua  

Name: Mengdie Hua

Title: Legal Representative

 

 

 

The Signature Page of Share Pledge Agreement

 

 

 

Schedule I

Company Name: Anhui Zhangduan Internet Technology Co., Ltd.

Shareholding Structure:

			
	
Shareholder Name
	
Amount of Contribution of Company’s registered capitals

(RMB/Yuan)
	
Shareholding Ratio

	
Wanting Xu
	
6,000,000
	
60%

	
Min Gao 
	
4,000,000
	
40%

	
Total
	
10,000,000
	
100%qtt-ex428_163.htm

 

Exhibit 4.28

 

Shareholders’ Voting Rights Proxy Agreement

 

THIS Shareholders’ Voting Rights Proxy Agreement (this “Agreement”) is executed on September 29, 2019 by and among the following parties in Shanghai, the People’s Republic of China (“PRC”):

 

	
1.
	
Wanting Xu, Chinese, ID No.: [REDACTED];

 

	
2.
	
Min Gao, Chinese, ID No.: [REDACTED] (together with Wanting Xu hereinafter referred to as “Shareholders”);

 

	
3.
	
Shanghai Quyun Internet Technology Co., Ltd., a limited liability company established and validly existing under PRC law with its registered address at [REDACTED] (“Sole Copporation”); and 

 

	
4.
	
Anhui Zhangduan Internet Technology Co., Ltd., a limited liability company established and validly existing under PRC law with its registered address at [REDACTED] (“Company”).

 

In this Agreement, the above parties hereinafter shall be individually referred to as a “Party” and collectively referred to as the “Parties”.

 

Whereas:

 

	
1.
	
The Shareholders, being the Company’s current shareholders, collectively hold 100% equity interest of the Company. As of the date of this Agreement, the amount of contribution and proportion of shareholding in the Company are as stated in Schedule I;

 

	
2.
	
The Shareholders intend to delegate a person appointed by the Sole Corporation to exercise the Shareholders’ voting rights in the Company and the Sole Corporation intend to appoint a person to accept such delegation.

 

The Parties come to an agreement as follows by friendly negotiation:

 

	
 
	
Article 1
	
Voting Rights Proxy

 

	
1.1
	
The Shareholders hereby irrevocably agree that after the Sole Corporation appoint someone other than staff of the Sole Corporation as an Assignee (definite as follows), the Shareholders will execute the Power of Attorney of which the content and format are as stated in Schedule II of this Agreement, authorizing the person designated by the Sole Corporation at that time (the “Assignee”) to, at his own will and discretion and on behalf of the Shareholders, exercise the following rights respectively enjoyed by the Shareholders under the 

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articles of association of the Company then effective. (“Delegated Right”):

 

	
 
	
(1)
	
propose to convene and attend a shareholders meeting of the Company according to the Company’s articles of association as the proxy of each of the Shareholders;

 

	
 
	
(2)
	
exercise the voting rights on behalf of the Shareholders on the matters which are required to be discussed and resolved in the shareholders meeting, including, but not limited to the appointment and election of the directors of the Company and other senior management that should be appointed or dismissed by the Shareholders;

 

	
 
	
(3)
	
exercise other Shareholder’s voting rights under the Company’s article of association (including any other voting right of the Shareholders specified after the modification of such article of association).

 

	
1.2
	
The above-mentioned authorization and delegation shall subject to the condition that the Assignee is a Chinese and the Sole Corporation agrees with such authorization and delegation. The Assignee has the right to recommit. In terms of the above-mentioned matters, the Assignee may recommit other person or entity to handle such matters by neither sending prior notice to relevant shareholders nor obtaining the consent from relevant shareholders. When and only when the Sole Corporation sends a written notice to the Shareholders to dismiss or replace the Assignee, the Shareholders shall immediately authorize another Chinese person designated by the Sole Corporation to exercise such right. The new appointment shall replace the former one immediately upon execution and except for such situation, the Shareholders shall not revoke the delegation and authorization to the Assignee.

 

	
1.3
	
The Assignee shall prudently and diligently perform the Delegated Right within the scope of authorization specified in this Agreement. The Shareholders agree to recognize and be responsible for the corresponding liability of any legal consequence caused by the Assignee exercising the above-mentioned Delegated Right.

 

	
1.4
	
The Shareholders hereby confirm that the Assignee may exercise such Delegated Right without asking for the Shareholders’ opinion in advance. However, the Assignee shall inform the Shareholders in time of the resolutions or proposals of convening temporary shareholders meeting are made.

 

	
1.5
	
The Shareholders hereby confirm that any action taken by the Assignee shall be deemed as an action of the Shareholders, and any documents or materials executed by the Assignee shall be deemed dully executed by the Shareholders with an authentic intention to do so.

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Article 2
	
Right to Know

 

	
2.1
	
For the purpose of exercising the rights hereunder, the Assignee shall be entitled to get access to related information with respect to the Company’s operation, business, client, finance, staff, etc. and to look up related materials. The Company shall cooperate sufficiently to this.

 

	
 
	
Article 3
	
Exercise of the Delegated Right

 

	
3.1
	
The shareholders will provide sufficient assistance with respect to the exercise of the Delegated Right by the Assignee, including promptly executing the Resolution of the shareholders meeting or other related legal documents made by the Assignee when necessary (to satisfy the requirements of the governmental authorities with respect to the documents submitted for approval, registration and filing).

 

	
3.2
	
If, at any time during the term of this Agreement, the authorization or exercise of the Delegated Right under this Agreement becomes unenforceable for any reason (except for breach of contract of the Shareholders or the Company), the Parties shall seek for an alternative solution most similar to the unenforceable provision and, if necessary, execute the supplementary agreement to amend or adjust the terms of this Agreement to make sure the purpose of this Agreement can be realized.

 

	
 
	
Article 4
	
Exemption and Indemnification

 

	
4.1
	
The Parties acknowledge that the Sole Corporation shall not be required to be liable for any responsibility to other parties or any third party or compensate in economic or other aspect due to the exercise of Delegated Right by Assignee under this Agreement.

 

	
4.2
	
The Shareholders and the Company agree to indemnify in full and hold harmless the Sole Corporation for any loss incurred or likely to incur by appointing the Assignee to exercise the Delegated Right, including but not limited to any loss caused by lawsuit, recovery, arbitration, claim bring by any third party against it or administrative investigation, punishment made by government departments, unless such loss is resulting from wilful misconduct or gross negligence of the Assignee.

 

	
 
	
Article 5
	
Representations and Warranties

 

	
5.1
	
The Shareholders hereby respectively and jointly represent and warrant the Sole Corporation that:

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5.1.1
	
He/It is a Chinese citizen with full capacity or a limited liability company/limited partnership duly registered and validly existing under laws of domicile. He/It has complete and independent legal status and ability and is properly authorized to execute, deliver and perform this Agreement and can be a subject of litigation independently.

 

	
 
	
5.1.2
	
He/It has the complete right and authorization to execute and deliver this Agreement and all other documents he/it is going to execute related to the transaction stated hereunder and has the full right and authorization to complete such transaction. This Agreement is executed and delivered legally and appropriately. This Agreement constitutes a legal and binding obligation of him/it and can be enforceable according to the provisions of this Agreement.

 

	
 
	
5.1.3
	
He/It is a legally registered shareholder of the Company as of the effectiveness of this Agreement. Except for the rights set according to this Agreement, the Share Pledge Agreement and the Exclusive Option Agreement executed on the same date of this Agreement among the Shareholders, the Company and the Sole Corporation, there is no other third-party rights on the Delegated Right. In accordance with this Agreement, the Assignee may completely and sufficiently exercise its Delegated Right according to the Company’s article of association then effective.

 

	
5.2
	
The Sole Corporation and the Company hereby respectively represents and warrants that:

 

	
 
	
5.2.1
	
It is a limited liability company duly registered and validly existing under the laws of domicile and has independent legal personality. It has complete and independent legal status and the ability to execute, deliver and perform this Agreement and can be a subject of litigation independently.

 

	
 
	
5.2.2
	
It has the complete internal right and authorization of the Company to execute and deliver this Agreement and all other documents it is going to execute related to the transaction stated hereunder and has the full right and authorization to complete such transaction. 

 

	
5.3
	
The Company further represents and warrants that:

 

	
 
	
5.3.1
	
The Shareholders are legally registered shareholders of the Company as of the effectiveness of this Agreement. Except for the right set according to this Agreement, the Share Pledge Agreement and Exclusive Option 

4

 

 

	
 
		
Agreement executed among the Shareholders, the Company and the Sole Corporation, there is no other third-party rights on the Delegated Right. In accordance with this Agreement, the Assignee may completely and sufficiently exercise its Delegated Right according to the Company’s article of association then effective.

 

	
 
	
Article 6
	
Term of Agreement

 

	
6.1
	
Subject to Article 6.2 of this Agreement, this Agreement shall come into effect on the date the Parties executed formally. Unless and until earlier terminated with the Parties’ written agreement or in accordance with Article 9.1 of this Agreement, this Agreement shall remain effective and in force.

 

	
6.2
	
This Agreement shall be terminated under the situation that the Company or the Sole Corporation does not complete the approval and registration procedure of extending the operating period when it expires.

 

	
6.3
	
This Agreement shall automatically be terminated if the Shareholders transfer all the equity interest of the Company they held to the Sole Corporation or the entity appointed by the Sole Corporation with the Sole Corporation’s prior written consent.

 

	
 
	
Article 7
	
Notice

 

	
7.1
	
All notices and other communications required or sent under this Agreement shall be delivered personally, registered post, postage paid or business express service or fax to the Party’s following address. Each notice shall also be delivered by email. The dates on which the notices shall be deemed to have been effectively delivered shall be determined as follows:

 

	
 
	
7.1.1
	
For notices delivered by personal delivery, express service or registered post, postage paid, the effectively delivered date shall be deemed as the date of delivery or refusal at the address specified for notices.

 

	
 
	
7.1.2
	
For the notices delivered by fax, the effectively delivered date shall be deemed as the date of delivered successfully. (as evidenced by an automatically generated confirmation of transmission)

 

	
7.2
	
For the purpose of notice, the addresses of the Parties are as follows:

 

Shareholders:

Wanting Xu

Address: [REDACTED]

Recipient: [REDACTED]

Mobile: [REDACTED]

5

 

 

 

Min Gao

Address: [REDACTED]

Recipient: [REDACTED]

Mobile:    [REDACTED]

 

The Sole Corporation: Shanghai Quyun Internet Technology Co., Ltd.

Address: [REDACTED]

Recipient: [REDACTED]

Mobile: [REDACTED]

 

The Company: Anhui Zhangduan Internet Technology Co., Ltd.

Address: [REDACTED]

Recipient: [REDACTED]

Mobile: [REDACTED]

 

	
7.3
	
Any Party may at any time send notice to other Parties in accordance with this Article to change its address for the purpose of receiving notices.

 

	
 
	
Article 8
	
Confidentiality

 

	
8.1
	
Regardless of the termination of this Agreement, the Parties shall maintain the confidentiality of all information relating to other party’s trade secret, proprietary information, client information and all other information with confidentiality acknowledged during the course of execution and performance of this Agreement (“Confidential Information”). The Party receiving the Confidential Information shall not disclose any Confidential Information to any third party except with the disclosing party of the Confidential Information’s prior written consent or required by provisions of related laws, regulations or the listing location of the affiliated company of One Party to disclose to third parties; Except for the purpose of performing this Agreement, the recipient shall not use or indirectly use any Confidential Information.

 

	
8.2
	
The following information is not deemed as Confidential Information:

 

	
 
	
(a)
	
Any information is acknowledged by the recipient previously through legitimate form which could be evidenced by written proof;

	
 
	
(b)
	
Information of the public which is not due to the recipient’s fault; or 

	
 
	
(c)
	
Information obtained through other legitimate form by the recipient after the recipient received the information.

 

	
8.3
	
The Party receiving the Confidential Information can disclose the information to its related staff, agents or professionals hired by the Party. However, the recipient shall make sure that such person will comply with the related terms and conditions of this Agreement and the recipient shall be liable for such person’s breaching relating terms and conditions of this Agreement. 

6

 

 

 

	
8.4
	
The effect of this Article shall not be influenced by the termination of this Agreement regardless of other provisions of this Agreement.

 

	
 
	
Article 9
	
Default Liability

 

	
9.1
	
The Parties agree and confirm that any substantial violation of any of the provisions under this Agreement of any Party (“Defaulting Party”), or any substantial failure of, or any delay on, performing any obligation under this Agreement will constitute a default under this Agreement (the “Default”) and any party who is not a Defaulting Party (“Non-Defaulting Party”) shall have the right to require the Defaulting Party to correct or take remedial measures in reasonable time period. If the Defaulting Party does not correct or take remedial measures in reasonable time period or ten (10) days after the other party informs the Defaulting Party in written of compensation requirements, then:

 

	
 
	
9.1.1
	
If the Shareholders or the Company is the Defaulting Party, the Sole Corporation shall have the right to terminate this Agreement and require the Defaulting Party to compensate.

 

	
 
	
9.1.2
	
If the Sole Corporation is the Defaulting Party, the Non-Defaulting Parties shall have the right to require the Defaulting Party to compensate. However, unless otherwise specified in laws, the Non-Defaulting Parties are not entitled to terminate or relieve this Agreement under any circumstance.

 

	
 
	
9.1.3
	
Regardless of any provision otherwise agreed under this Agreement, the effectiveness of this Article shall not be affected by suspension or termination of this Agreement.

 

	
 
	
Article 10
	
Miscellaneous

 

	
10.1
	
This Agreement is written in Chinese in four (4) originals. Each Party of this Agreement shall have one (1) and all the originals shall have equal legal validity.

 

	
10.2
	
PRC law will apply to the execution, effectivity, implementation, amendment, interpretation and termination of this Agreement.

 

	
10.3
	
Any dispute arising from interpretation and implementation of this Agreement shall be firstly resolved by the Parties through friendly negotiation. If the dispute cannot be resolved in thirty (30) days after the written notice sent from one party to the other for negotiation and resolution, any party may submit the relevant dispute to China International Economic and Trade Arbitration Commission for arbitration in accordance with the arbitration rules then effective. The arbitration 

7

 

 

		
shall be conducted in Shanghai and the language used is Chinese. The award of the arbitral tribunal shall be final and binding on all Parties.

 

	
10.4
	
Any right, power and remedy empowered to any Party by any provision of this Agreement shall not exclude any other right, power and remedy enjoyed by such Party in accordance with laws and other provisions under this Agreement, and a Party’s exercise of its rights, powers and remedies shall not exclude its exercise of other rights, powers and remedies enjoyed.

 

	
10.5
	
Any Party’s failure or delay to exercise any right, power and remedy enjoyed by this Agreement or laws (“the Party’s Rights”) shall not cause waiver of such rights. In addition, the waiver of any single or part of the Party’s Right shall not exclude such Party’s exercising such rights in other ways and exercising other rights.

 

	
10.6
	
The title of Articles in this Agreement is set for reference only, and such titles shall not be used to or affect the interpretation of Articles in this Agreement under any circumstance.

 

	
10.7
	
Each provision of this Agreement can be severable and independent from any other provision. If one or several provisions of this Agreement are found to be invalid, illegal or unenforceable at any time, the validity, legality or enforceability of remaining provisions of this Agreement shall not be affected.

 

	
10.8
	
Any amendment, supplement of this Agreement shall be made in written and come into effect after proper execution of the Parties of this Agreement. Regardless of any provision otherwise agreed in this Agreement, without Sole Corporation’s prior written consent, any Shareholder shall not revoke delegation of the Delegated Right under this Agreement and any Shareholder and the Company shall not terminate this Agreement. However, the Sole Corporation may, at any time inform the Shareholders and the Company to terminate this Agreement by sending written notice thirty (30) days in advance.

 

	
10.9
	
Without prior written consent from the Sole Corporation, other Parties are not allowed to transfer any right and/or obligation under this Agreement to any third party; the Shareholders and the Company hereby agree that the Sole Corporation has the right to transfer its any right and/or obligation under this Agreement to any third party without prior notice to related Shareholders or the Company or their consent.

 

	
10.10
	
This Agreement shall be binding on the legal successors of the Parties.

 

	
10.11
	
Every of the Shareholders shall be jointly liable for the obligations of the other Shareholders under this Agreement.

8

 

 

 

 [The remainder of this page intentionally left blank.]

 

9

 

 

 [Signature Page]

 

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

 

Wanting Xu

Signature: /s/ Wangting Xu  

 

 

Min Gao

Signature: /s/ Min Gao 

 

 

Shanghai Quyun Internet Technology Co., Ltd.

 (Seal)

 

Signature: /s/ Fei Shen

Name: Fei Shen

Title: Legal Representative

 

 

Anhui Zhangduan Internet Technology Co., Ltd.

 (Seal)

 

Signature: /s/ Mengdie Hua

Name: Mengdie Hua

Title: Legal Representative

 

 

股东表决权委托协议签署页

The Signature Page of the Voting Rights Proxy Agreement

 

 

Schedule I

 

Company Name: Anhui Zhangduan Internet Technology Co., Ltd.

Shareholding Structure:

 

			
	
Shareholder Name
	
Amount of Contribution of Company’s registered capitals

(RMB/Yuan)
	
Shareholding Ratio

	
Wanting Xu
	
6,000,000
	
60%

	
Min Gao 
	
4,000,000
	
40%

	
Total
	
10,000,000
	
100%

 

 

 

 

 

 

Schedule II:

 

Power of Attorney

 

This Power of Attorney (hereinafter referred to as the “POA”) is executed by Wanting Xu (ID No.: [REDACTED]) on _______, 2019 and provided to _______(ID No. __________) (hereinafter referred to as “Assignee”).

 

I, Wanting Xu, hereby irrevocably grant the Assignee a comprehensive power of attorney, authorize the Assignee to represent me as my proxy, in the name of me, at his/her own will and discretion to exercise the following rights enjoyed for being a shareholder of Anhui Zhangduan Internet Technology Co., Ltd. (hereinafter referred to as the “Company”):

 

	
 
	
(1)
	
propose to convene and attend shareholders meeting of the Company according to the Company’s articles of association as my proxy;

 

	
 
	
(2)
	
exercise the voting rights as my proxy on the matters which are required to be discussed and resolved on the shareholders meeting, including, but not limited to the appointment and election of the directors of the Company and other senior management that shall be appointed or dismissed by the shareholders meeting;

 

	
 
	
(3)
	
exercise other Shareholder’s voting rights as my proxy under the Company’s article of association (including any other voting right of Shareholders specified after the modification of such article of association).

 

The Assignee has the right to recommit. In terms of the above-mentioned matters, the Assignee may recommit other person or entity to handle such matters by neither sending prior notice to me nor obtaining consent from me.

 

I, hereby irrevocably confirm that, unless [     ] (“Sole Corporation”) requires me to change the Assignee, the period of validity of this POA shall continue until the Voting Rights Proxy Agreement executed by the Sole Corporation, the Company and the Shareholders on [   ] [   ], 2019 expires or early terminates.

 

Hereby authorized.

 

 

 

                  Name:

                                       

Signature: _________________

                                                                                    Date:   _____, 2019.

 

 

 

Schedule II:

 

Power of Attorney

 

This Power of Attorney (hereinafter referred to as the “POA”) is executed by Min Gao (ID No.: [REDACTED]) on _______, 2019 and provided to _______(ID No. __________) (hereinafter referred to as “Assignee”)

 

I, Min Gao, hereby irrevocably grant the Assignee a comprehensive power of attorney, authorize the Assignee to represent me as my proxy, in the name of me, at his/her own will and discretion to exercise the following rights enjoyed for being a shareholder of Anhui Zhangduan Internet Technology Co., Ltd. (hereinafter referred to as the “Company”):

 

	
 
	
(1)
	
propose to convene and attend shareholders meeting of the Company according to the Company’s articles of association as my proxy;

 

	
 
	
(2)
	
exercise the voting rights as my proxy on the matters which are required to be discussed and resolved on the shareholders meeting, including, but not limited to the appointment and election of the directors of the Company and other senior management that shall be appointed or dismissed by the shareholders meeting;

 

	
 
	
(3)
	
exercise other Shareholder’s voting rights as my proxy under the Company’s article of association (including any other voting right of Shareholders specified after the modification of such article of association).

 

The Assignee has the right to recommit. In terms of the above-mentioned matters, the Assignee may recommit other person or entity to handle such matters by neither sending prior notice to me nor obtaining consent from me.

 

I, hereby irrevocably confirm that, unless [     ] (“Sole Corporation”) requires me to change the Assignee, the period of validity of this POA shall continue until the Voting Rights Proxy Agreement executed by the Sole Corporation, the Company and the Shareholders on [   ] [   ], 2019 expires or early terminates.

 

Hereby authorized.

 

 

 

                                                                             Name:

                                       

Signature: _________________

                                                                                    Date:   _____, 2019.

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