Document:

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”), is entered into as of                      by and between Kuke Music Holding Limited, a company incorporated and existing under the laws of the Cayman Islands (the “Company”), and                     , an individual (the “Executive”). The term “Company” as used herein with respect to all obligations of the Executive hereunder shall be deemed to include the Company and all of its direct or indirect parent companies, subsidiaries, affiliates, or subsidiaries or affiliates of its parent companies (collectively, the “Group”).

 

RECITALS

 

The Company desires to employ the Executive and to assure itself of the services of the Executive during the term of Employment (as defined below).

 

The Executive desires to be employed by the Company during the term of Employment and upon the terms and conditions of this Agreement.

 

AGREEMENT

 

The parties hereto agree as follows:

 

1.              POSITION

 

The Executive hereby accepts a position of                    of the Company (the “Employment”).

 

2.              TERM

 

Subject to the terms and conditions of this Agreement, the initial term of the Employment shall be [three] years, commencing on                      (the “Effective Date”), unless terminated earlier pursuant to the terms of this Agreement. Upon expiration of the initial-year term, the Employment shall be automatically extended for successive                    -year terms unless either party gives the other party hereto a [three]-month prior written notice to terminate the Employment prior to the expiration of such                    -year term or unless terminated earlier pursuant to the terms of this Agreement.

 

3.              PROBATION

 

No probationary period.

 

4.              DUTIES AND RESPONSIBILITIES

 

The Executive’s duties at the Company will include all jobs assigned by the Company’s Board of Directors (the “Board”) and/or the Chief Executive Officer of the Company.

 

The Executive shall devote all of his/her working time, attention and skills to the performance of his/her duties at the Company and shall faithfully and diligently serve the Company in accordance with this Agreement, the Memorandum and Articles of Association of the Company (the “Articles of Association”), and the guidelines, policies and procedures of the Company approved from time to time by the Board.

 

 

The Executive shall use his/her best efforts to perform his/her duties hereunder. The Executive shall not, without prior consent of the Board, become an employee of any entity other than the Company and any subsidiary or affiliate of the Company, and shall not be concerned or interested in any business or entity that directly or indirectly competes with the Group (any such business or entity, a “Competitor”), provided that nothing in this clause shall preclude the Executive from holding up to     % of shares or other securities of any Competitor that is listed on any securities exchange or recognized securities market anywhere, provided however, that the Executive shall notify the Company in writing prior to his/her obtaining a proposed interest in such shares or securities in a timely manner and with such details and particulars as the Company may reasonably require. The Company shall have the right to require the Executive to resign from any board or similar body which he/she may then serve if the Board reasonably determines in writing that the Executive’s service on such board or body interferes with the effective discharge of the Executive’s duties and responsibilities to the Company or that any business related to such service is then in competition with any business of the Company or any of its subsidiaries or affiliates.

 

5.              NO BREACH OF CONTRACT

 

The Executive hereby represents to the Company that: (i) the execution and delivery of this Agreement by the Executive and the performance by the Executive of the Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or otherwise bound, except for agreements that are required to be entered into by and between the Executive and any member of the Group pursuant to applicable law of the jurisdiction where the Executive is based, if any; (ii) that the Executive has no information (including, without limitation, confidential information and trade secrets) relating to any other person or entity which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his/her duties hereunder; (iii) that the Executive is not bound by any confidentiality, trade secret or similar agreement (other than this) with any other person or entity except for other member(s) of the Group, as the case may be.

 

6.              LOCATION

 

The Executive will be based in Beijing, the People’s Republic of China, until both parties hereto agree to change otherwise. The Executive acknowledges that he/she may be required to travel from time to time in the course of performing his/her duties for the Company.

 

7.              COMPENSATION AND BENEFITS

 

(a)         Compensation. The Executive’s cash compensation (inclusive of the statutory welfare reserves that the Company is required to set aside for the Executive under applicable law) shall be provided by the Company pursuant to Schedule A hereto or as specified in a separate agreement between the executive and the company’s designated subsidiary or affiliated entity, subject to annual review and adjustment by the Company or the compensation committee of the Board. The cash compensation may be paid by the Company, a subsidiary or affiliated entity or a combination thereof, as designated by the Company from time to time.

 

(b)         Equity Incentives. To the extent the Company adopts and maintains a share incentive plan, the Executive will be eligible to participate in such plan pursuant to the terms thereof.

 

(c)          Benefits. The Executive is eligible for participation in any standard employee benefit plan of the Company that currently exists or may be adopted by the Company in the future, including, but not limited to, any retirement plan, life insurance plan, health insurance plan and travel/holiday plan.

 

 

8.              TERMINATION OF THE AGREEMENT

 

(a)         By the Company. The Company may terminate the Employment for cause, at any time, without notice or remuneration, if the Executive (1) commits any serious or persistent breach or non-observance of the terms and conditions of your employment; (2) is convicted of a criminal offence other than one which in the opinion of the Board does not affect the executive’s position as an employee of the Company, bearing in mind the nature of your duties and the capacity in which the executive is employed; (3) willfully disobeys a lawful and reasonable order; (4) misconducts himself/herself and such conduct being inconsistent with the due and faithful discharge of the Executive’s material duties; (5) is guilty of fraud or dishonesty; or (6) is habitually neglectful in his/her duties. The Company may terminate the Employment without cause at any time with a three-month prior written notice to the Executive or by payment of three months’ salary in lieu of notice.

 

(b)         By the Executive. The Executive may terminate the Employment at any time with a three-month prior written notice to the Company or by payment of three months’ salary in lieu of notice. In addition, the Executive may resign prior to the expiration of the Agreement if such resignation or an alternative arrangement with respect to the Employment is approved by the Board.

 

(c)          Notice of Termination. Any termination of the Executive’s employment under this Agreement shall be communicated by written notice of termination from the terminating party to the other party. The notice of termination shall indicate the specific provision(s) of this Agreement relied upon in effecting the termination.

 

9.              CONFIDENTIALITY AND NONDISCLOSURE

 

(a)         Confidentiality and Non-disclosure. The Executive hereby agrees at all times during the term of his/her employment and after termination, to hold in the strictest confidence, and not to use, except for the benefit of the Group, or to disclose to any person, corporation or other entity without written consent of the Company, any Confidential Information. The Executive understands that “Confidential Information” means any proprietary or confidential information of the Group, its affiliates, their clients, customers or partners, and the Group’s licensors, including, without limitation, technical data, trade secrets, research and development information, product plans, services, customer lists and customers (including, but not limited to, customers of the Group on whom the Executive called or with whom the Executive became acquainted during the term of his/her employment), supplier lists and suppliers, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, personnel information, marketing, finances, information about the suppliers, joint ventures, licensors, licensees, distributors and other persons with whom the Group does business, information regarding the skills and compensation of other employees of the Group or other business information disclosed to the Executive by or obtained by the Executive from the Group, its affiliates, or their clients, customers or partners either directly or indirectly in writing, orally or by drawings or observation of parts or equipment, if specifically indicated to be confidential or reasonably expected to be confidential. Notwithstanding the foregoing, Confidential Information shall not include information that is generally available and known to the public through no fault of the Executive. 

 

 

(b)         Company Property. The Executive understands that all documents (including computer records, facsimile and e-mail) and materials created, received or transmitted in connection with his/her work or using the facilities of the Group are property of the Group and subject to inspection by the Group, at any time. Upon termination of the Executive’s employment with the Company (or at any other time when requested by the Company), the Executive will promptly deliver to the Company all documents and materials of any nature pertaining to his/her work with the Company and will provide written certification of his compliance with this Agreement. Under no circumstances will the Executive have, following his/her termination, in his/her possession any property of the Group, or any documents or materials or copies thereof containing any Confidential Information.

 

(c)          Former Employer Information. The Executive agrees that he has not and will not, during the term of his/her employment, (i) improperly use or disclose any proprietary information or trade secrets of any former employer or other person or entity with which the Executive has an agreement or duty to keep in confidence information acquired by Executive, if any, or (ii) bring into the premises of the Group any document or confidential or proprietary information belonging to such former employer, person or entity unless consented to in writing by such former employer, person or entity. The Executive will indemnify the Group and hold it harmless from and against all claims, liabilities, damages and expenses, including reasonable attorneys’ fees and costs of suit, arising out of or in connection with any violation of the foregoing.

 

(d)         Third Party Information. The Executive recognizes that the Group may have received, and in the future may receive, from third parties their confidential or proprietary information subject to a duty on the Group’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. The Executive agrees that the Executive owes the Group and such third parties, during the Executive’s employment by the Company and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person or firm and to use it in a manner consistent with, and for the limited purposes permitted by, the Group’s agreement with such third party.

 

This Section 9 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 9, the Company shall have right to seek remedies permissible under applicable law.

 

10.       INVENTIONS 

 

(a)         Inventions Retained and Licensed. The Executive has attached hereto, as Schedule B, a list describing all inventions, ideas, improvements, designs and discoveries, whether or not patentable and whether or not reduced to practice, original works of authorship and trade secrets made or conceived by or belonging to the Executive (whether made solely by the Executive or jointly with others) that (i) were developed by Executive prior to the Executive’s employment by the Company (collectively, “Prior Inventions”), (ii) relate to the Group’s actual or proposed business, products or research and development, and (iii) are not assigned to the Group hereunder; or, if no such list is attached, the Executive represents that there are no such Prior Inventions. Except to the extent set forth in Schedule B, the Executive hereby acknowledges and represents that, if in the course of his/her service for the Group, the Executive incorporates into a Group product, process or machine a Prior Invention owned by the Executive or in which he/she has an interest, (a) the Group is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual,

 

 

worldwide right and license (which may be freely transferred by the Group to any other person or entity) to make, have made, modify, use, sell, sublicense and otherwise distribute such Prior Invention as part of or in connection with such product, process or machine, and (b) he/she has all necessary rights, powers and authorization to use such Prior Invention in the manner it is used and such use will not infringe any right of any company, entity or person. The Executive hereby agrees to indemnify the Group and hold it harmless from all claims, liabilities, damages and expenses, including reasonable legal fees and costs for resolving disputes arising out of or in connection with any violation or claimed violation of a third party’s rights resulting from any use, sub-licensing, modification, transfer or sale by the Group of such Prior Invention.

 

(b)         Disclosure and Assignment of Inventions. The Executive understands that the Company engages in research and development and other activities in connection with its business and that, as an essential part of the Employment, the Executive is expected to make new contributions to and create inventions of value for the Company.

 

From and after the Effective Date, the Executive shall make full written disclosure in confidence to the Company all inventions, improvements, designs, original works of authorship, formulas, processes, compositions of matter, computer software programs, databases, mask works, concepts and trade secrets, whether or not patentable or registrable under patent, copyright, circuit layout design or similar laws in China or anywhere else in the world, which the Executive may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of the Executive’s Employment at the Company (whether or not during business hours) that are either related to the scope of his/her Employment at the Company or make use, in any manner, of the resources of the Group (collectively, the “Inventions”). The Executive hereby acknowledges that the Company or the Group shall be the sole owner of all rights, title and interest in the Inventions created hereunder. In the event the foregoing assignment of Inventions to the Company or the Group is ineffective for any reason, each member of the Group is hereby granted and shall have a royalty-free, sub-licensable, transferable, irrevocable, perpetual, worldwide license to make, have made, modify, use, and sell such Inventions as part of or in connection with any product, process or machine. Such exclusive license shall continue in effect for the maximum term as may now or hereafter be permissible under applicable law. Upon expiration, such license, without further consent or action on the Executive’s part, shall automatically be renewed for the maximum term as is then permissible under applicable law, unless, within the six-month period prior to such expiration, the Company and the Executive have agreed that such license will not be renewed. The Executive also hereby forever waives and agrees never to assert any and all rights he may have in or with respect to any Inventions even after termination of his/her employment with the Company. The Executive hereby further acknowledges that all Inventions created by him/her (solely or jointly with others) are, to the extent permitted by applicable law, “works made for hire” or “inventions made for hire,” as those terms are defined in the People’s Republic of China (“PRC”) Copyright Law, the PRC Patent Law and the Regulations on Computer Software Protection, respectively, and all titles, rights and interests in or to such Inventions are or shall be vested in the Company.

 

(c)          Patent and Copyright Registration. The Executive agrees to assist the Company or its designees in every proper way to obtain for the Company and enforce patents, copyrights, mask work rights, trade secret rights, and other legal protection for the Inventions in any and all countries. The Executive will execute any documents that the Company may reasonably request for use in obtaining or enforcing such patents, copyrights, mask work rights, trade secrets and other legal protections. The Executive’s obligations under this paragraph will continue beyond the termination of the Employment with the Company, provided that the Company will reasonably compensate the Executive after such termination for time or expenses actually spent by the Executive at the Company’s request

 

 

on such assistance. The Executive appoints the Company and its duly authorized officers and agents as the Executive’s attorney-in-fact to execute documents on the Executive’s behalf for this purpose.

 

(d)         Remuneration. The Executive hereby agrees that the remuneration received by the Executive pursuant to this Agreement with the Company includes any remuneration which the Executive may be entitled to under applicable PRC law for any “works made for hire,” “inventions made for hire” or other Inventions assigned to the Company pursuant to this Agreement.

 

(e)          Return of Confidential Material. In the event of the Executive’s termination of employment with the Company for any reason whatsoever, Executive agrees promptly to surrender and deliver to the Company all records, materials, equipment, drawings, documents and data of any nature pertaining to any confidential information or to his/her employment, and Executive will not retain or take with him/her any tangible materials or electronically-stored data, containing or pertaining to any confidential information that Executive may produce, acquire or obtain access to during the course of his/her employment.

 

This Section 10 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 10, the Company shall have right to seek remedies permissible under applicable law.

 

11.       CONFLICTING EMPLOYMENT 

 

The Executive hereby agrees that, during the term of his/her employment with the Company, he/she will not engage in any other employment, occupation, consulting or other business activity related to the business in which the Group is now involved or becomes involved during the term of the Executive’s employment, nor will the Executive engage in any other activities that conflict with his/her obligations to the Company without the prior written consent of the Company.

 

12.       NON-COMPETITION AND NON-SOLICITATION

 

In consideration of the salary paid to the Executive by the Company, the Executive undertakes that for a period of one (1) year after he/she ceases to be employed by the Company, he/she will not, without the prior written consent of the Company:

 

(a)         in the territory of the PRC (for the purpose of this Section 12, the PRC shall include Hong Kong, Macau and Taiwan) (the “Territory”), either on his/her own account or through any of his/her affiliates, or in conjunction with or on behalf of any other person, carry on or be engaged, concerned or interested directly or indirectly whether as shareholder, director, employee, partner, agent or otherwise carry on any business in direct competition with the business of the Group, provided that the Executive is reasonably compensated by the Company during such period;

 

(b)         either on his/her own account or through any of his/her affiliates or in conjunction with or on behalf of any other person, solicit or entice away or attempt to solicit or entice away from the Group, any person, firm, company or organization who is or shall at any time within two (2) years prior to such cessation have been a customer, client, representative or agent of the Group or in the habit of dealing with the Group;

 

(c)          either on his/her own account or through any of his/her affiliates or in conjunction with or on behalf of any other person, employ, solicit or

 

 

entice away or attempt to employ, solicit or entice away from the Group any person who is or shall have been at the date of or within twelve (12) months prior to such cessation of employment an officer, manager, consultant or employee of any such the Group whether or not such person would commit a breach of contract by reason of leaving such employment; or

 

(d)         either on his/her own account or through any of his/her affiliates or in conjunction with or on behalf of any other person, in relation to any trade, business or company use a name including the words of “Kuke,” “Kuke Music,” “Kukey,” “BMF,” “Beijing Music Festival,” “库客,” “库客音乐,” “北京国际音乐节” or any other words hereafter used by the Group in its name or in the name of any of its products, services or their derivative terms, or the Chinese or English equivalent or any similar word in such a way as to be capable of or likely to be confused with the name of the Group or the product or services or any other products or services of the Group, and shall use all reasonable endeavors to procure that no such name shall be used by any of his/her affiliates or otherwise by any person with which he/she is connected.

 

Each and every obligation under Section 12 shall be treated as a separate obligation and shall be severally enforceable as such and in the event of any obligation or obligations being or becoming unenforceable in whole or in part, such part or parts which are unenforceable shall be deleted from such section and any such deletion shall not affect the enforceability of the remainder parts of such section.

 

The Executive agrees that in light of the circumstances, the restrictive covenants contained in Section 12 are reasonable and necessary for the protection of the Group, and further agrees that the said covenants are not excessive or unduly onerous upon the Executive. However, it is recognized that restrictions of the nature in question may fail for technical reasons currently unforeseen and accordingly it is hereby agreed and declared that if any of such restrictions shall be adjudged to be void as going beyond what is reasonable, in light of the circumstances, for the protection of the Group, but would be valid if part of the wording thereof were deleted or the periods thereof reduced or the range of activities or area dealt with thereby reduced in scope, the said restriction shall apply with such modification as may be necessary to make it valid and effective.

 

This Section 12 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 12, the Executive acknowledges that there will be no adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a decree for specific performance, and such other relief as may be proper (including monetary damages if appropriate). In any event, the Company shall have right to seek all remedies permissible under applicable law.

 

13.       WITHHOLDING TAXES

 

Notwithstanding anything else herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

14.       NOTIFICATION OF NEW EMPLOYER

 

In the event that the Executive leaves the employ of the Company, the Executive hereby grants consent to notification by the Company to his/her new employer about his/her rights and obligations under this Agreement.

 

 

15.       ASSIGNMENT

 

This Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; provided, however, that (i) the Company may assign or transfer this Agreement or any rights or obligations hereunder to any member of the Group without such consent, and (ii) in the event of a merger, consolidation, or transfer or sale of all or substantially all of the assets of the Company with or to any other individual(s) or entity, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of the Company hereunder.

 

16.       SEVERABILITY

 

If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.

 

17.       ENTIRE AGREEMENT

 

This Agreement constitutes the entire agreement and understanding between the Executive and the Company regarding the terms of the Employment and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter, other than any such agreement under any employment agreement entered into with a subsidiary of the Company at the request of the Company to the extent such agreement does not conflict with any of the provisions herein. The Executive acknowledges that he/she has not entered into this Agreement in reliance upon any representation, warranty or undertaking which is not set forth in this Agreement. Any amendment to this Agreement must be in writing and signed by the Executive and the Company.

 

18.       REPRESENTATIONS

 

The Executive hereby agrees to execute any proper oath or verify any proper document required to carry out the terms of this Agreement. The Executive hereby represents that the Executive’s performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by the Executive in confidence or in trust prior to his/her employment by the Company. The Executive has not entered into, and hereby agrees that he/she will not enter into, any oral or written agreement in conflict with this Section 18. The Executive represents that the Executive will consult his/her own consultants for tax advice and is not relying on the Company for any tax advice with respect to this Agreement or any provisions hereunder.

 

19.       GOVERNING LAW

 

This Agreement shall be governed by and construed in accordance with the laws of People’s Republic China.

 

20.       ARBITRATION

 

Any dispute arising out of, in connection with or relating to, this Agreement shall be resolved through arbitration pursuant to this Section 20. The arbitration shall be conducted in the People’s Republic China under the auspices of the Hong Kong International Arbitration Centre (the “Centre”) in accordance with the rules of the United Nations Commission of International Trade Law (“UNCITRAL Rules”) in effect at the time of the arbitration. There shall be one arbitrator. The award of the arbitration tribunal shall be final and binding upon the disputing parties, and any party may apply to a court of competent jurisdiction for enforcement of such award.

 

 

21.       AMENDMENT

 

This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

 

22.       WAIVER

 

Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

23.       NOTICES

 

All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii) sent by a recognized courier with next-day or second-day delivery to the last known address of the other party.

 

24.       COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

25.       NO INTERPRETATION AGAINST DRAFTER

 

Each party recognizes that this Agreement is a legally binding contract and acknowledges that such party has had the opportunity to consult with legal counsel of choice. In any construction of the terms of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such terms. The Executive agrees and acknowledges that he/she has read and understands this Agreement, is entering into it freely and voluntarily, and has been advised to seek counsel prior to entering into this Agreement and has ample opportunity to do so.

 

 

[Remainder of this page has been intentionally left blank.]

 

 

IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

 

 

	
Kuke Music Holding   Limited
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Executive
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    

 

[Signature Page to Employment Agreement]

 

 

Schedule A

 

Cash Compensation

 

	
 
    	
 
    	
Amount
    	
 
    	
Pay Period
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Salary
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
annually
    	
 
    	
to be paid monthly
    

 

 

Schedule B

 

List of Prior Inventions

 

	
Title
    	
 
    	
Date
    	
 
    	
Identifying Number
   or Brief Description
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

o No inventions or improvements

o Additional Sheets Attached

 

	
Signature of  Executive:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Print Name of  Executive:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:Exhibit 10.3

 

Power of Attorney

 

This Power of Attorney (the “Agreement”) is executed in the Chaoyang District of Beijing, the People’s Republic of China, on February 26, 2018, by the following parties.

 

Party A: Kuke Future International Technology (Beijing) Co., Ltd. (“WFOE”)

Unified Social Credit Code: 91110105MA019CH24W

Address: Room 105, Building 96, No.4 Sanjianfangnanli, Chaoyang District, Beijing

 

Party B:

 

1.                  Beijing Geligao Consulting Services Co., Ltd.

Unified Social Credit Code: 91110105062848234W

Legal Representative: He YU

Address: Room 208, Building 96, No.4 Sanjianfangnanli, Chaoyang District, Beijing

 

2.                  Kunshan Maidun Culture Industry Investment Enterprise (Limited Partnership)

Unified Social Credit Code: 91320583060164613P

Managing Partner: Kunshan Maidun Hengfeng Equity Investment Management Enterprise()

Address: Room 5143 International Finance Building, No. 538 Shang Yin Road, Huaqiao Town

 

3.                  Tian LV

ID: 110102198212013314

Address: 1-402 Building 17, No.34 Fuwai Street, Xicheng District, Beijing

 

4.                  Jun MA

ID: 11010519630501181x

Address: 7-401 Building 10, Maizidian Street, Chaoyang District, Beijing

 

5.                  He YU

ID: 110108197306035737

Address: 2-301, Building 236, Huixinli, Chaoyang District, Beijing

 

6.                  Peixian TAN

ID: 110105198210254113

Address: No. 101, Unit 3, Building 1, North Lane, Nantaipingzhuang, Chaoyang District, Beijing, China

 

7.                  Xingping ZUO

ID: 110108196504140015

Address: No. 910, 60th Floor, North Li Shi Road, Xicheng District, Beijing, China

 

 

8.                  Rongtao JIANG

ID: 110104197703051612

Address: 501, West Gate 6, 9/F, Caiyuan Dongli, Xuanwu District, Beijing, China

 

9.                  Jianming JIN

ID: 310223195801100257

Address:No.723, Huaxin Yuan, Dafang Town, Baoshan District, Shanghai, China.

 

10.           Liwei LIANG

ID: 130423198510014018

Address: No.23 Xiaokang Road, Shazhuang Village, Yanzhaiying Township, Linzhang County, Handan City, Hebei Province, China.

 

11.           Liping QIU

ID: 110105196409258139

Address: No. 1602, Gate 1, Building 18, Anyuan District, Anhui Beili, Chaoyang District, Beijing, China.

 

12.           Wei ZHAO

ID: 11010119820721203X

Address: No. 1201, Gate 3, 1st Floor, Anwai Donghayan, Dongcheng District, Beijing, China

 

13.           Hua XING

ID: 110108196308012307

Address: No. 202, 4th Floor, Zone 7, No. 15A, Wanshou Road, Haidian District, Beijing, China.

 

14.           Yuanxin XIU

ID: 370883198208030423

Address: No. 1002, Unit 1, Building 7, No. 8, Zhongtancun Avenue, Changping District, Beijing, China

 

15.           Haoxuan DIAO

ID: 110102197705070427

Address: No.10, Gate 4, Building 2, No.45, Xihuangchenggen South Street, Xicheng District, Beijing, China.

 

16.           Dingfeng LIU

ID: 410526196311150140

Address: No. 102, Unit 3, Building 5A, Tanghekou Street, Huairou District, Beijing, China

 

 

17.           Hanqing HUANG

ID: 310102198308172827

Address: 175 Baidu Road, Huangpu District, Shanghai, China

 

18.           Zheng TU

ID: 330501197803270015

Address: Room 401, Building 51, East Baiyutan District, Longquan Street, Wuxing District, Huzhou City, Zhejiang Province, China.

 

Parties B 1-18 above are collectively referred to as the “Target Company Shareholders”.

 

Party C: Beijing Kuke Music Co., Ltd. (“Target Company”)

Unified Social Credit Code: 91110105717747136P

Address: Room 207, Building 96, No.4 Sanjianfangnanli, Chaoyang District, Beijing

 

The foregoing Parties A, B and C shall be referred to in this Agreement individually as “Party” and collectively as the “Parties”.

 

WHEREAS:

 

1. Party B is a registered shareholder of the Target Company, and Party B holds in aggregate 100% of the equity interest in the Target Company, the shareholding structure of which is shown in Annex 1.

 

2. WFOE and the Target have concurrently entered into an Exclusive Consulting Service Agreement and an Exclusive Intellectual Property Rights Licensing Agreement as of the date of this Agreement.

 

3. The parties hereto have executed both the Equity Interest Pledge Agreement and the Exclusive Option Agreement as of the date hereof (this Agreement, the Exclusive Consulting Service Agreement, the Exclusive Intellectual Property Rights Licensing Agreement, the Equity Interest Pledge Agreement and the Exclusive Option Agreement, collectively, the “Contractual Arrangements”).

 

4. Subject to the terms of this Agreement, the Target Company Shareholders agree to unconditionally and irrevocably appoint WFOE or a person designated by WFOE (the “Nominee”, including, without limitation, directors of WFOE and/or its foreign parent company, successors in place of such directors, and the liquidator) to exercise its rights and obligations with respect to its holdings of the Target Company voting rights and all other shareholder rights arising out of the Target Company’s equity interest; WFOE agrees to accept such proxy.

 

 

Accordingly, the parties have agreed to the following in connection with the said proxy.

 

Article 1 Shareholders’ mandates

 

1. Target Company’s Shareholders, subject to compliance with the laws and regulations of the PRC, agree to unconditionally and irrevocably authorize WFOE or a nominee to exercise, on behalf of the shareholders of the Target Company, the voting rights of the shareholders of the Target Company in respect of their equity interests in the Target Company and the rights of all other shareholders pursuant to the Articles of Association of the Target Company then in effect (collectively, the “WFOEs”), on the condition that they comply with the laws and regulations of the PRC. “Shareholder Rights”), including, but not limited to.

 

(1) To propose, on behalf of the Target Company’s shareholders, the convening of and participate in the Target Company’s general meeting of shareholders and sign the minutes and resolutions of the meeting, to exercise voting rights on all matters requiring discussion and resolution at the general meeting of shareholders (including but not limited to the appointment, election or removal of the Target Company’s directors, supervisors and senior management), and to sign, on behalf of the Target Company’s shareholders, all documents requiring the signature of the Target Company’s shareholders and to submit any document to the company’s registrar for filing purposes.

 

(2) To make resolutions on the disposal of the Target Company’s assets on behalf of the Target Company’s shareholders.

 

(3) To make resolutions on the dissolution and liquidation of the Target Company on behalf of the Target Company’s shareholders and to form a liquidation group on behalf of the Target Company’s shareholders and to exercise the powers and functions that the liquidation group enjoys during liquidation in accordance with the law, including but not limited to making resolutions on the disposal of the Target Company’s assets.

 

(4) Deciding to transfer or otherwise dispose of the equity interests in the Target Company held by the shareholders of the Target Company.

 

(5) other shareholder rights under other applicable PRC laws and regulations (including amendments, changes, additions and re-enactments thereof, whether effective before or after the conclusion of this Agreement) and the Target Company’s Articles of Incorporation (and amendments thereto from time to time).

 

2. in the event that the Target Company’s shareholders are directors and officers of WFOE or WFOE’s foreign parent company, the Target Company’s shareholders will authorize WFOE, or at the direction of WFOE, to authorize other directors and officers, other than the Target Company’s shareholders, to exercise the rights under Article 1. 

 

 

The shareholders of the Target Company shall not revoke any mandate and authorization made to WFOE or a nominee, and shall not make any commitment to or enter into any agreement with any third party where such commitment or agreement is in conflict of interest with any agreement entered into between the shareholders of the Target Company and WFOE, and shall ensure that no potential conflict of interest exists between the shareholders of the Target Company and WFOE, and shall not do any act that would result in the Target Company any conflict of interest between the shareholder and WFOE; if such a conflict of interest arises (and WFOE has the sole discretion to determine whether such a conflict of interest arises), the shareholder of the Target Company will, subject to PRC laws and regulations, take any action directed by WFOE to eliminate such conflict of interest, or if such conflict of interest cannot be eliminated (and WFOE has the sole discretion to determine whether such conflict of interest can be eliminated). Subject to the laws and regulations of the PRC, WFOE may exercise the exclusive purchase right under the structured contract.

 

3. Target Company’s Shareholders undertake that they will not, directly or indirectly (whether by themselves or through any other natural person or legal entity), participate in, or engage in, acquire or hold (in any case whether as shareholders, partners, agents, employees or otherwise) any business which is or may be in competition with the Target Company or any of its subsidiaries or other related parties, or which is or may be in competition with the Target Company or any of its subsidiaries or other related parties, without the written consent of WFOE. in which they have an interest.

 

4. If WFOE or the Nominee decides to liquidate and dissolve the Target Company pursuant to Article 1.(3) of this Agreement, the Target Company Shareholders shall ensure and urge the Target Company to cooperate with the liquidator in the completion of all relevant liquidation and dissolution proceedings and shall ensure that all assets remaining after the liquidation and dissolution of the Target Company are transferred to WFOE without compensation. The Target Company Shareholders shall cooperate fully with all proceedings or documents required to be performed or executed for the purposes of such liquidation dissolution or transfer.

 

5. WFOE shall have the right, in its sole discretion, to authorize its Nominees to exercise shareholder rights at any time, and the WFOE shall have the right to remove the Nominees at any time with prior notice to the Target Company’s shareholders. The exercise of the power of attorney by such designated person shall be deemed to be an exercise of such power of attorney by WFOE and shall have the same legal force and effect as the exercise of such power of attorney by WFOE under this Agreement.

 

6. When WFOE or a nominee exercises shareholder rights on behalf of the Target Company’s shareholders, it shall comply with the provisions of the Target Company’s bylaws and relevant laws.

 

 

7. Target Company’s Shareholders covenant not to exercise any shareholder rights without the prior written consent of WFOE; nor to interfere with the exercise of shareholder rights by WFOE or the Nominee, and to use their best efforts to cooperate with WFOE or the Nominee in the exercise of such rights. The Target Company Shareholders further agree to promptly execute all agreements, resolutions and other documents reasonably necessary and to perform all actions reasonably necessary to enforce this Agreement and to assist WFOE or the Nominee in the exercise of its rights as a Shareholder.

 

8. the Target Company Shareholders agree that WFOE or the Nominee may exercise the Shareholder Rights at its own discretion without prior consultation with the Target Company Shareholders, and that the exercise of such proxy by WFOE or the Nominee shall be deemed to be the act of the Target Company Shareholders and the execution of the documents by WFOE or the Nominee shall be deemed to be the execution of the Target Company Shareholders. Each shareholder acknowledges and recognizes the consequences arising from the exercise of the above-mentioned power of attorney by WFOE or the nominee, and shall bear the corresponding legal responsibilities and consequences.

 

9. Target Company Shareholders shall each sign an authorization in substance identical to Annex II to this Agreement, authorizing WFOE or the Nominee to exercise the Shareholder Rights. If, at any time during the term of this Agreement, WFOE notifies the Target Shareholders in writing of the termination of the authorization of a particular Nominee, the Target Company Shareholders shall immediately terminate the authorization of such Nominee and separately authorize another person designated by WFOE to exercise the rights agreed upon in Article 1.1 of this Agreement.

 

10. At any time during the term of this Agreement, if for any reason (other than default by the Target Company Shareholders), the grant or exercise of such rights by the shareholders is prevented from being realized, the Parties shall immediately seek alternatives that most closely resemble the provisions of this Agreement and, if necessary, enter into a supplemental agreement to amend or adjust the terms of this Agreement to ensure that the purposes of this Agreement may continue to be achieved.

 

11. For the purpose of exercising its delegated rights under this Agreement, WFOE or the Nominee shall have the right to obtain information on the operations, business, customers, finances, employees, etc. of the Target Company and to inspect relevant materials of the Target Company. The Target Company shall cooperate with such access.

 

Article 2 Duration of the mandate

 

1. This Agreement shall be effective from the date it is signed by the parties and completed on the date each of the Contractual Arrangements is signed until WFOE has terminated this Agreement in writing or the entire equity interest in the Target Company held by the Shareholders of the Target Company has been legally and validly transferred to WFOE and/or the Nominee (i.e. the entire equity interest in the Target Company is shown to be registered in the name of WFOE and/or the Nominee in the Business Register) or the Target Company’s The date on which all assets have been legally and validly transferred to the ownership of WFOE and/or the Nominee.

 

 

2. No shareholder of the Target Company may transfer his or her shareholding (whether in part or in whole) to any institution or person other than WFOE, unless such institution or person is designated by WFOE. If any one of the Target Company Shareholders has the prior written consent of WFOE to transfer all of its equity interests in the Target Company and has completed the delivery of the equity transfer, such party will cease to be a party to this Agreement, but the obligations and commitments of the other Target Company Shareholders under this Agreement shall not be affected in any way. Any transfer of equity interests in the Target Company (whether partial or total) by the Target Company’s shareholders shall be conditioned upon the transferee undertaking that it will assume all of the rights and obligations of the transferor under this Agreement and cause the transferee to replace the transferor as a party to this Agreement.

 

Article 3 Representations and warranties

 

1. Each party to this Agreement makes the following representations and warranties to the other parties.

 

(1) The party is an entity established in accordance with legal procedures and is validly subsisting, with the relevant formalities complete, or is an entity with full civil acts and rights, or is a natural person of Chinese nationality with full civil acts and rights.

 

(2) Its authority to enter into this Agreement and to perform its obligations hereunder.

 

(3) Such party has granted its authorized representative the right to sign this Agreement and the terms of this Agreement shall be legally binding upon it as of the Effective Date.

 

(4) The execution, delivery, and performance of this Agreement: (i) will not conflict with or violate the provisions of (A) its business license, bylaws, license, approval of its incorporation by a governmental authority, agreement relating to its incorporation, or any other programmatic document, (B) any Chinese law or any other document to which it is bound, after notice thereof or the passage of time. law, (C) any contract or other document to which it is a party or to which it is bound or to which its assets are bound, either individually or jointly; (ii) does not result in the creation of any encumbrance or other encumbrance of rights over its assets or entitle any third party to create any encumbrance or encumbrance of rights over its assets other than those created on the Target Company’s equity pursuant to the Equity Interest Pledge Agreement entered into by the parties as of the date of this Agreement Pledge and the Exclusive Purchase Rights created by the Exclusive Option Agreement; (iii) will not result in the termination or modification of the terms of any contract or other document to which it is a party or to which it is bound or to which its assets are bound, or in the right of any other third party to terminate or modify the terms of such document; (iv) will not result in the suspension, revocation of any governmental approvals, permits, registrations, etc. applicable to it, the damage, confiscation or non-renewal after expiry.

 

 

(5) There is no litigation, arbitration or other judicial or administrative proceeding that has occurred and is pending that would affect the ability of such party to perform its obligations under this Agreement, and no threat of such action is known to such party.

 

(6) Such party has disclosed to the other party all documents issued by any governmental agency that could materially and adversely affect its ability to fully perform its obligations under this Agreement, and no misrepresentation or omission of any material fact is contained in any document previously provided by such party to the other party.

 

(7) Upon WFOE’s request, such party will execute all necessary documents to the satisfaction of WFOE, take all necessary actions to cooperate with WFOE in the completion of the transfer of the Target Company’s shares.

 

2. Target Company Shareholders warrant to WFOE that it is a Shareholder of the Target Company registered in the business register and included in the Register of Shareholders at the time this Agreement becomes effective. Pursuant to this Agreement, WFOE may fully exercise its rights in accordance with the Articles of Association of the Target Company as well as laws and regulations in effect at the time.

 

3. Target Company Shareholders warrant to WFOE that it has made and caused its shareholders (including indirect shareholders and beneficial interest holders), directors and partners (as applicable) to make all appropriate arrangements and sign all necessary documents to ensure that in the event of (a) a merger, demerger, dissolution, liquidation, cancellation and/or (b) a change in the controlling shareholder or general partner or beneficial owner, or (c) In the event of other circumstances that may affect the exercise of their shareholdings, their successors, liquidation groups, creditors and other persons who may acquire shareholdings or related rights as a result cannot influence or hinder the performance of this Agreement. Each Target Company Shareholder warrants to WFOE that it has made and caused its shareholders (including indirect shareholders and beneficial interest holders), directors and partners (as applicable) to make all proper arrangements and execute all documents required to facilitate the effective survival of such Target Company Shareholder.

 

4. In the event of a change in the controlling shareholder (or general partner) or beneficial owner of a particular Target Company Shareholder, such Target Company Shareholder shall obtain the prior consent of WFOE, provided that WFOE shall not withhold its consent if the proposed new controlling shareholder (or general partner) or beneficial owner consents in writing and undertakes to procure the continuation of this Agreement by such Target Company Shareholder.

 

 

5. In the event of a merger, demerger, dissolution, liquidation, filing for bankruptcy, or cancellation of a particular Target Company Shareholder, such Target Company Shareholder shall obtain the prior consent of WFOE, but WFOE shall not withhold its consent in the event that such Target Company Shareholder’s successor consents in writing and undertakes to cause such Target Company Shareholder to continue to perform under this Agreement.

 

6. Target Company Shareholder warrants to WFOE that in the event of death, divorce, bankruptcy, liquidation or other circumstances that may affect the exercise of his or her directly or indirectly held equity interest in the Target Company, his or her spouse, heirs, liquidators and any other person/entity who directly or indirectly acquires an equity interest or related interest as a result of such event will not impair or hinder the performance of this Agreement.

 

7. Target Company shareholders warrant to WFOE that they hereby waive their shareholder rights and that they shall not exercise such rights on their own.

 

8. WFOE warrants that it will exercise the exclusive right to purchase under the Exclusive Option Agreement as soon as possible from the date on which the PRC law allows foreign investors to directly or indirectly hold shares to operate the business of the Target Company, in order for WFOE to directly operate the business of the Target Company or to directly hold a corporate equity interest in the Target Company and to terminate the structured contract with the Target Company and other related parties.

 

9. If the representations and warranties of either party are untrue or inaccurate, they shall constitute a material breach by such party.

 

Article 4 Liability for breach of contract

 

1. The Parties agree and acknowledge that a material breach by either party (hereinafter referred to as the “Defaulting Party”) of any of the undertakings made under this Agreement, or a material failure or delay in performance of any of its obligations under this Agreement, shall constitute a default under this Agreement and the Defaulting Party shall be entitled to require the Defaulting Party to rectify or Take Remedial Measures. If the breaching party fails to correct or remedy the breach within a reasonable period of time or within 10 days after written notice to the breaching party and a request for correction, the complying party shall have the right, at its sole discretion, to.

 

(1) WFOE shall have the right to terminate this Agreement and seek damages from the Defaulting Party if the Target Company Shareholder or the Target Company is the Defaulting Party.

 

 

(2) In the event that WFOE is the defaulting party, the party in compliance shall have the right to seek damages from WFOE, but it shall not have any right to terminate or rescind this Agreement under any circumstances unless otherwise provided by law.

 

2. Notwithstanding the foregoing, the parties agree and acknowledge that in no event shall the Target Company and the Target Company Shareholders be entitled to terminate this Agreement for any reason whatsoever, unless otherwise provided or agreed by law or this Agreement. The validity of this clause shall not be affected by the termination of this Agreement.

 

Article 5 Exclusion and indemnification

 

1. The parties acknowledge that WFOE or the Nominee shall not be held liable or be required to indemnify the other parties to this Agreement in any way, financial or otherwise, in connection with the exercise of the shareholder rights.

 

2. the Target Company Shareholders and the Target Company agree to indemnify and hold harmless WFOE or the Nominee from and against all losses suffered by WFOE or the Nominee as a result of the exercise of its shareholder rights, including, without limitation, any losses arising from any lawsuit, charge or claim brought against it by any third party, or from any administrative investigation or sanction by any governmental authority. Provided, however, that no indemnification shall be made for losses that arise out of the willful or gross negligence of the WFOE or Nominee.

 

Article 6 Application of Law and Dispute Resolution

 

1. The conclusion, entry into force, interpretation and dispute settlement of this Agreement shall be governed by PRC law.

 

2. All disputes under this Agreement shall first be settled through friendly consultation. If the dispute is not settled by negotiation within thirty (30) days after the dispute arises, either party shall have the right to submit the dispute to the China International Economic and Trade Arbitration Commission (CIETAC) for arbitration in Beijing by three arbitrators in accordance with the arbitration rules in force at the time of the application. The arbitral award shall be final and binding on all parties to the arbitration. While the arbitration is in progress, each party shall continue to perform its obligations under this Agreement, except for the matter or obligation under dispute.

 

3. If necessary, the arbitration institution shall have the right, prior to making a final decision on the dispute between the parties, to grant WFOE appropriate legal remedies under its authority by either awarding the defaulting party immediate cessation of the default or awarding the defaulting party not to engage in conduct that would cause further damage to the defending party, including: (1) awarding such remedies against the equity or assets of Target Company; (2) awarding such remedies against the equity or assets of Target Company (e.g., to order the Festival Culture to remain in operation or to compel the transfer of assets); (3) awarding the dissolution or liquidation of the Target Company.

 

 

4. Subject to PRC law, and on the condition that complying with PRC laws, regulations and valid arbitration rules, a court of competent jurisdiction (i.e. the courts of the PRC, the Hong Kong Special Administrative Region of the PRC, the Cayman Islands and the location of the parties’ principal assets) shall have the authority to grant interim relief (e.g. preservation of property, preservation of evidence) in support of the arbitration prior to the constitution of the arbitral tribunal or in appropriate circumstances, ex officio. Or, on the basis of an interlocutory decision of the arbitral institution, to rule that the breaching party immediately ceases the breach or that the breaching party refrains from acts that would cause further damage to the complying party.

 

Article 7 Confidentiality

 

1. The Confidential Information (including, but not limited to, business information, customer information, financial information, contracts, etc.) of a party (the “Disclosing Party”) has been or may be disclosed from time to time to the other party (the “Recipient”) prior to the conclusion of this Agreement and during the term of this Agreement. . The Recipient must maintain the confidentiality of the Confidential Information and shall not use the Confidential Information for any purpose other than as expressly provided herein. The foregoing confidentiality provisions shall not apply to information (a) that the Recipient has evidence that it had lawful possession of such information prior to its disclosure to the Disclosing Party; (b) that such information is or will be in the public domain not as a result of the Recipient’s breach of this Agreement; (c) that the Recipient has obtained such information from a third party who is not under a duty of confidentiality with respect to such information; and (d) that any party, in accordance with applicable laws, regulations or regulatory requirements or disclosed to its employees, agents, legal counsel or financial advisors in connection with its normal operations (provided that the Recipient shall ensure that such persons comply with the relevant terms and conditions of this Agreement and shall assume any liability arising from any breach by such persons of the relevant terms and conditions of this Agreement).

 

2. The above obligations of confidentiality are ongoing for the parties to this Agreement and shall not be terminated by the termination of this Agreement.

 

Article 8 Other Terms and Conditions

 

1. Each party shall complete the approval and registration procedures for the extension of the term of operation no later than 3 months prior to the expiry of the term of operation so that this Agreement shall remain in force.

 

 

2. During the term of this Agreement, one party may not assign its rights or obligations under this Agreement, in part or in whole, to any third party without the prior written consent of the other party, except that WFOE shall have the right to assign all or part of its rights and obligations under this Agreement.

 

3. If any provision of this Agreement is invalid, illegal or unenforceable under Chinese law, all other provisions of this Agreement shall remain in full force and effect. In the event that any provision of this Agreement is held to be invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith and amend this Agreement to achieve the original intent of the parties as nearly as possible in an acceptable manner.

 

4. If any amendment to this Agreement is proposed by the relevant regulatory authority, the parties shall negotiate an amendment to this Agreement accordingly.

 

5. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior negotiations, talks and agreements between the parties with respect to such subject matter.

 

6. Failure or delay by a party to exercise a right under this Agreement shall not constitute a waiver of that right and shall not prevent the party from exercising that right again in the future if it has already exercised or partially exercised that right.

 

7. This Agreement shall be legally binding upon the parties hereto and their lawful successors and assigns.

 

8. The Parties may enter into supplemental agreements in connection with this Agreement and its related matters. Any amendment, supplement to this Agreement must be in writing and, except for the assignment by WFOE of its rights under this Agreement pursuant to Article 8.2, no amendment, supplement to this Agreement shall become effective until duly signed by the parties hereto. If any modification or supplement to this Agreement is required by law to obtain a license and/or registration or filing with any governmental agency, the parties shall obtain such license and/or complete such registration or filing in accordance with law.

 

9. This Agreement shall be written in Chinese in 21 original copies, one copy for each of the parties, and others shall be retained by the Target Company and shall be of equal legal effect.

 

(No text below, followed by the signature page)

 

 

Annex I

 

Share structure of Beijing Kuke Music Co., Ltd

 

	
No.
    	
 
    	
Name
    	
 
    	
Amount
    	
 
    	
Percentage
    	
 
    
	
1.
    	
 
    	
Beijing Geligao Consulting Services Co., Ltd.
    	
 
    	
578,967
    	
 
    	
3.5709
    	
%
    
	
2.
    	
 
    	
Kunshan Maidun Culture Industry Investment   Enterprise (Limited Partnership)
    	
 
    	
1,448,511
    	
 
    	
8.9341
    	
%
    
	
3.
    	
 
    	
TIAN LV
    	
 
    	
244,000
    	
 
    	
1.5049
    	
%
    
	
4.
    	
 
    	
JUN MA
    	
 
    	
552,479
    	
 
    	
3.4076
    	
%
    
	
5.
    	
 
    	
HE YU
    	
 
    	
5,762,723
    	
 
    	
35.5433
    	
%
    
	
6.
    	
 
    	
PEIXIAN TAN
    	
 
    	
98,548
    	
 
    	
0.6079
    	
%
    
	
7.
    	
 
    	
XINGPING ZUO
    	
 
    	
4,201,335
    	
 
    	
25.9129
    	
%
    
	
8.
    	
 
    	
RONGTAO JIANG
    	
 
    	
78,548
    	
 
    	
0.4845
    	
%
    
	
9.
    	
 
    	
JIANMING JIN
    	
 
    	
1,464,786
    	
 
    	
9.0345
    	
%
    
	
10.
    	
 
    	
LIWEI LIANG
    	
 
    	
78,548
    	
 
    	
0.4845
    	
%
    
	
11.
    	
 
    	
LIPING QIU
    	
 
    	
195,000
    	
 
    	
1.2027
    	
%
    
	
12.
    	
 
    	
WEI ZHAO
    	
 
    	
10,000
    	
 
    	
0.0617
    	
%
    
	
13.
    	
 
    	
HUA XING
    	
 
    	
687,515
    	
 
    	
4.2404
    	
%
    
	
14.
    	
 
    	
YUANXIN XIU
    	
 
    	
10,000
    	
 
    	
0.0617
    	
%
    
	
15.
    	
 
    	
HAOXUAN DIAO
    	
 
    	
162,804
    	
 
    	
1.0041
    	
%
    
	
16.
    	
 
    	
HANQING HUANG
    	
 
    	
282,511
    	
 
    	
1.7425
    	
%
    
	
17.
    	
 
    	
DINGFENG LIU
    	
 
    	
200,000
    	
 
    	
1.2336
    	
%
    
	
18.
    	
 
    	
ZHENG TU
    	
 
    	
157,000
    	
 
    	
0.9683
    	
%
    
	
 
    	
 
    	
Total
    	
 
    	
16,213,275
    	
 
    	
100
    	
%
    

 

 

Annex II

Authorization

 

Beijing Geligao Consulting Services Co., Ltd., Kunshan Maidun Culture Industry Investment Enterprise (Limited Partnership), Tian LV, Jun MA, He YU, Peixian TAN, Xingping ZUO, Rongtao JIANG, Jianming JIN, Liwei LIANG, Liping QIU, Wei ZHAO, Hua XING, Yuanxin XIU, Haoxuan DIAO, Hanqing HUANG, Dingfeng LIU, Zheng TU, Beijing Kuke Music Co., Ltd. and Kuke Future International Technology (Beijing) Co., Ltd. has signed the Power of Attorney on [date]. In accordance with the agreement, the Company/I hereby issue this Authorization.

 

The Company/I, as a shareholder holding a total of 100% equity interest in Beijing Kuke Music Co., Ltd. (“Kuke Music”), hereby unconditionally and irrevocably authorize WFOE and any of its authorized directors, successors or liquidators (hereinafter referred to as the “Representatives”), as the sole representative of the Company/I, to exercise all shareholder voting rights and other shareholder rights enjoyed by the Company/I in Music Festival Culture in accordance with the Articles of Association of Music Festival Culture and relevant laws, including but not limited to:

 

1. to propose, on behalf of the Company/I, to convene and participate in the general meeting of Music Festival Culture and to sign the minutes and resolutions of the meeting, to exercise the right to vote on all matters requiring discussion and resolution at the general meeting (including but not limited to the appointment, election or removal of directors, supervisors and senior management of the target company), and to sign on behalf of the Company/I any document requiring the signature of the shareholders of Music Festival Culture and to submit to the Company any document requiring the signature of the shareholders of Music Festival Culture. (ii) Any document submitted by the registry authority for filing purposes.

 

2. to make resolutions on behalf of the Company/I on the disposal of the cultural assets of Kuke Music.

 

3. to make resolutions on behalf of the Company/I with respect to the dissolution and liquidation of Kuke Music and to form a liquidation group on behalf of the Company/I and to exercise the powers of the liquidation group during the liquidation in accordance with the law, including but not limited to making resolutions with respect to the disposal of the assets of Kuke Music.

 

4. to decide to transfer or otherwise dispose of the Company’s/my shareholding in the Kuke Music.

 

5. any other rights of shareholders to which the Company/I am entitled by virtue of the Articles of Incorporation of Kuke Music or by law.

 

 

The Company/I hereby agrees and acknowledges that the Representative shall have full authority to exercise the rights within the above authority in such manner as the Company/I deem appropriate and the Company/I undertake to accept the obligations or liabilities arising from the exercise of such rights by the Representative. All acts done by the Representative in connection with the Company’s/my shareholding shall be deemed to be the Company’s/my own acts and all documents signed by the Representative shall be deemed to be signed by the Company/my own. The Representative may do all such acts on his or her own volition and without seeking the prior consent of the Company/me. For the avoidance of doubt, if necessary (e.g. to meet governmental requirements for approval, registration or filing of documents), the Company/I will provide full assistance to the representative in exercising the power of attorney, including the timely execution of relevant legal documents.

 

This authorization shall be effective from the date of signature by the Company/I, and shall remain valid during the period of validity of the Agreement.

 

The authorization is hereby given.

 

(No text below, followed by signature page)

 

 

Power of Attorney

 

This Power of Attorney (the “Agreement”) is executed in the Chaoyang District of Beijing, the People’s Republic of China, on February 28, 2020, by the following parties.

 

PARTY A: Beijing Lecheng Future Culture Communications Co., Ltd. (“WFOE”)

Unified Social Credit Code: 91110105MA01P1Q96Y

Address: Room 402, 4/F, Building 96, No.4 Sanjianfangnanli, Chaoyang District, Beijing

 

PARTY B:

 

1.  Ningbo Huaqiang Ruizhe Investment Partnership (Limited Partnership)

Unified Social Credit Code: 91330206MA281W0HXN

Address: G2130, A-401, Building 1, No.88, Qixing Road, Meishan, Beilun District, Ningbo, Zhejiang Province

 

2. Suzhou Fengqiao Jichu Chuangye Investment Partnership (Limited Partnership)

Unified Social Credit Code: 91320509MA1X8HL53Q

Address: 2F, Building 3, Taihu New City Technopark, No.18 Suzhou River Road, Wujiang District, Suzhou Province

 

3. Tianjin Shengxin Enterprise Management Consulting Partnership (Limited Partnership)

Unified Social Credit Code: 91320509MA1X8HL53Q

Address: 464 East Government Road, Huanghuadian Town, Wuqing District, Tianjin

 

4. Long YU

ID: 310104196407011635

Address: 5-1273 Huaihai Middle Road, Xuhui District, Shanghai

 

5. He YU

ID: 110108197306035737

Address: 2-301, Building 236, Huixinli, Chaoyang District,        Beijing

 

6. Zheng TU

ID: 330501197803270015

Address: Room 401, Building 51, East Baiyutan District, Longquan, Wuxing District, Huzhou City, Zhejiang Province

 

Parties B 1-6 above are collectively referred to as the “Target Company Shareholders”.

 

 

PARTY C: Beijing Music Festival Culture Communications Co., Ltd. (“Target Company”)

Unified Social Credit Code: 91110105754181557D

Address: Room 401, 4/F, Building 96, No.4 Sanjianfangnanli, Chaoyang District, Beijing

 

The foregoing Parties A, B and C shall be referred to in this Agreement individually as “Party” and collectively as the “Parties”.

 

WHEREAS:

 

1. Party B is a registered shareholder of the Target Company, and Party B holds in aggregate 100% of the equity interest in the Target Company, the shareholding structure of which is shown in Annex 1.

 

2. WFOE and the Target have concurrently entered into an Exclusive Consulting Service Agreement as of the date of this Agreement.

 

3. The parties hereto have executed both the Equity Interest Pledge Agreement and the Exclusive Option Agreement as of the date hereof (this Agreement, the Exclusive Consulting Service Agreement, the Equity Interest Pledge Agreement and the Exclusive Option Agreement, collectively, the “Contractual Arrangements”).

 

4. Subject to the terms of this Agreement, the Target Company Shareholders agree to unconditionally and irrevocably appoint WFOE or a person designated by WFOE (the “Nominee”, including, without limitation, directors of WFOE and/or its foreign parent company, successors in place of such directors, and the liquidator) to exercise its rights and obligations with respect to its holdings of the Target Company voting rights and all other shareholder rights arising out of the Target Company’s equity interest; WFOE agrees to accept such proxy.

 

Accordingly, the parties have agreed to the following in connection with the said proxy.

 

Article 1 Shareholders’ mandates

 

1. Target Company’s Shareholders, subject to compliance with the laws and regulations of the PRC, agree to unconditionally and irrevocably authorize WFOE or a nominee to exercise, on behalf of the shareholders of the Target Company, the voting rights of the shareholders of the Target Company in respect of their equity interests in the Target Company and the rights of all other shareholders pursuant to the Articles of Association of the Target Company then in effect (collectively, the “WFOEs”), on the condition that they comply with the laws and regulations of the PRC. “Shareholder Rights”), including, but not limited to.

 

 

(1) To propose, on behalf of the Target Company’s shareholders, the convening of and participate in the Target Company’s general meeting of shareholders and sign the minutes and resolutions of the meeting, to exercise voting rights on all matters requiring discussion and resolution at the general meeting of shareholders (including but not limited to the appointment, election or removal of the Target Company’s directors, supervisors and senior management), and to sign, on behalf of the Target Company’s shareholders, all documents requiring the signature of the Target Company’s shareholders and to submit any document to the company’s registrar for filing purposes.

 

(2) To make resolutions on the disposal of the Target Company’s assets on behalf of the Target Company’s shareholders.

 

(3) To make resolutions on the dissolution and liquidation of the Target Company on behalf of the Target Company’s shareholders and to form a liquidation group on behalf of the Target Company’s shareholders and to exercise the powers and functions that the liquidation group enjoys during liquidation in accordance with the law, including but not limited to making resolutions on the disposal of the Target Company’s assets.

 

(4) Deciding to transfer or otherwise dispose of the equity interests in the Target Company held by the shareholders of the Target Company.

 

(5) other shareholder rights under other applicable PRC laws and regulations (including amendments, changes, additions and re-enactments thereof, whether effective before or after the conclusion of this Agreement) and the Target Company’s Articles of Incorporation (and amendments thereto from time to time).

 

2. in the event that the Target Company’s shareholders are directors and officers of WFOE or WFOE’s foreign parent company, the Target Company’s shareholders will authorize WFOE, or at the direction of WFOE, to authorize other directors and officers, other than the Target Company’s shareholders, to exercise the rights under Article 1. The shareholders of the Target Company shall not revoke any mandate and authorization made to WFOE or a nominee, and shall not make any commitment to or enter into any agreement with any third party where such commitment or agreement is in conflict of interest with any agreement entered into between the shareholders of the Target Company and WFOE, and shall ensure that no potential conflict of interest exists between the shareholders of the Target Company and WFOE, and shall not do any act that would result in the Target Company any conflict of interest between the shareholder and WFOE; if such a conflict of interest arises (and WFOE has the sole discretion to determine whether such a conflict of interest arises), the shareholder of the Target Company will, subject to PRC laws and regulations, take any action directed by WFOE to eliminate such conflict of interest, or if such conflict of interest cannot be eliminated (and WFOE has the sole discretion to determine whether such conflict of interest can be eliminated). Subject to the laws and regulations of the PRC, WFOE may exercise the exclusive purchase right under the structured contract.

 

 

3. Target Company’s Shareholders undertake that they will not, directly or indirectly (whether by themselves or through any other natural person or legal entity), participate in, or engage in, acquire or hold (in any case whether as shareholders, partners, agents, employees or otherwise) any business which is or may be in competition with the Target Company or any of its subsidiaries or other related parties, or which is or may be in competition with the Target Company or any of its subsidiaries or other related parties, without the written consent of WFOE. in which they have an interest.

 

4. If WFOE or the Nominee decides to liquidate and dissolve the Target Company pursuant to Article 1.(3) of this Agreement, the Target Company Shareholders shall ensure and urge the Target Company to cooperate with the liquidator in the completion of all relevant liquidation and dissolution proceedings and shall ensure that all assets remaining after the liquidation and dissolution of the Target Company are transferred to WFOE without compensation. The Target Company Shareholders shall cooperate fully with all proceedings or documents required to be performed or executed for the purposes of such liquidation dissolution or transfer.

 

5. WFOE shall have the right, in its sole discretion, to authorize its Nominees to exercise shareholder rights at any time, and the WFOE shall have the right to remove the Nominees at any time with prior notice to the Target Company’s shareholders. The exercise of the power of attorney by such designated person shall be deemed to be an exercise of such power of attorney by WFOE and shall have the same legal force and effect as the exercise of such power of attorney by WFOE under this Agreement.

 

6. When WFOE or a nominee exercises shareholder rights on behalf of the Target Company’s shareholders, it shall comply with the provisions of the Target Company’s bylaws and relevant laws.

 

7. Target Company’s Shareholders covenant not to exercise any shareholder rights without the prior written consent of WFOE; nor to interfere with the exercise of shareholder rights by WFOE or the Nominee, and to use their best efforts to cooperate with WFOE or the Nominee in the exercise of such rights. The Target Company Shareholders further agree to promptly execute all agreements, resolutions and other documents reasonably necessary and to perform all actions reasonably necessary to enforce this Agreement and to assist WFOE or the Nominee in the exercise of its rights as a Shareholder.

 

8. the Target Company Shareholders agree that WFOE or the Nominee may exercise the Shareholder Rights at its own discretion without prior consultation with the Target Company Shareholders, and that the exercise of such proxy by WFOE or the Nominee shall be deemed to be the act of the Target Company Shareholders and the execution of the documents by WFOE or the Nominee shall be deemed to be the execution of the Target Company Shareholders. Each shareholder acknowledges and recognizes the consequences arising from the exercise of the above-mentioned power of attorney by WFOE or the nominee, and shall bear the corresponding legal responsibilities and consequences.

 

 

9. Target Company Shareholders shall each sign an authorization in substance identical to Annex II to this Agreement, authorizing WFOE or the Nominee to exercise the Shareholder Rights. If, at any time during the term of this Agreement, WFOE notifies the Target Shareholders in writing of the termination of the authorization of a particular Nominee, the Target Company Shareholders shall immediately terminate the authorization of such Nominee and separately authorize another person designated by WFOE to exercise the rights agreed upon in Article 1.1 of this Agreement.

 

10. At any time during the term of this Agreement, if for any reason (other than default by the Target Company Shareholders), the grant or exercise of such rights by the shareholders is prevented from being realized, the Parties shall immediately seek alternatives that most closely resemble the provisions of this Agreement and, if necessary, enter into a supplemental agreement to amend or adjust the terms of this Agreement to ensure that the purposes of this Agreement may continue to be achieved.

 

11. For the purpose of exercising its delegated rights under this Agreement, WFOE or the Nominee shall have the right to obtain information on the operations, business, customers, finances, employees, etc. of the Target Company and to inspect relevant materials of the Target Company. The Target Company shall cooperate with such access.

 

Article 2 Duration of the mandate

 

1. This Agreement shall be effective from the date it is signed by the parties and completed on the date each of the Contractual Arrangements is signed until WFOE has terminated this Agreement in writing or the entire equity interest in the Target Company held by the Shareholders of the Target Company has been legally and validly transferred to WFOE and/or the Nominee (i.e. the entire equity interest in the Target Company is shown to be registered in the name of WFOE and/or the Nominee in the Business Register) or the Target Company’s The date on which all assets have been legally and validly transferred to the ownership of WFOE and/or the Nominee.

 

2. No shareholder of the Target Company may transfer his or her shareholding (whether in part or in whole) to any institution or person other than WFOE, unless such institution or person is designated by WFOE. If any one of the Target Company Shareholders has the prior written consent of WFOE to transfer all of its equity interests in the Target Company and has completed the delivery of the equity transfer, such party will cease to be a party to this Agreement, but the obligations and commitments of the other Target Company Shareholders under this Agreement shall not be affected in any way. Any transfer of equity interests in the Target Company (whether partial or total) by the Target Company’s shareholders shall be conditioned upon the transferee undertaking that it will assume all of the rights and obligations of the transferor under this Agreement and cause the transferee to replace the transferor as a party to this Agreement.

 

 

Article 3 Representations and warranties

 

1. Each party to this Agreement makes the following representations and warranties to the other parties.

 

(1) The party is an entity established in accordance with legal procedures and is validly subsisting, with the relevant formalities complete, or is an entity with full civil acts and rights, or is a natural person of Chinese nationality with full civil acts and rights.

 

(2) Its authority to enter into this Agreement and to perform its obligations hereunder.

 

(3) Such party has granted its authorized representative the right to sign this Agreement and the terms of this Agreement shall be legally binding upon it as of the Effective Date.

 

(4) The execution, delivery, and performance of this Agreement: (i) will not conflict with or violate the provisions of (A) its business license, bylaws, license, approval of its incorporation by a governmental authority, agreement relating to its incorporation, or any other programmatic document, (B) any Chinese law or any other document to which it is bound, after notice thereof or the passage of time. law, (C) any contract or other document to which it is a party or to which it is bound or to which its assets are bound, either individually or jointly; (ii) does not result in the creation of any encumbrance or other encumbrance of rights over its assets or entitle any third party to create any encumbrance or encumbrance of rights over its assets other than those created on the Target Company’s equity pursuant to the Equity Interest Pledge Agreement entered into by the parties as of the date of this Agreement Pledge and the Exclusive Purchase Rights created by the Exclusive Option Agreement; (iii) will not result in the termination or modification of the terms of any contract or other document to which it is a party or to which it is bound or to which its assets are bound, or in the right of any other third party to terminate or modify the terms of such document; (iv) will not result in the suspension, revocation of any governmental approvals, permits, registrations, etc. applicable to it, the damage, confiscation or non-renewal after expiry.

 

(5) There is no litigation, arbitration or other judicial or administrative proceeding that has occurred and is pending that would affect the ability of such party to perform its obligations under this Agreement, and no threat of such action is known to such party.

 

(6) Such party has disclosed to the other party all documents issued by any governmental agency that could materially and adversely affect its ability to fully perform its obligations under this Agreement, and no misrepresentation or omission of any material fact is contained in any document previously provided by such party to the other party.

 

 

(7) Upon WFOE’s request, such party will execute all necessary documents to the satisfaction of WFOE, take all necessary actions to cooperate with WFOE in the completion of the transfer of the Target Company’s shares.

 

2. Target Company Shareholders warrant to WFOE that it is a Shareholder of the Target Company registered in the business register and included in the Register of Shareholders at the time this Agreement becomes effective. Pursuant to this Agreement, WFOE may fully exercise its rights in accordance with the Articles of Association of the Target Company as well as laws and regulations in effect at the time.

 

3. Target Company Shareholders warrant to WFOE that it has made and caused its shareholders (including indirect shareholders and beneficial interest holders), directors and partners (as applicable) to make all appropriate arrangements and sign all necessary documents to ensure that in the event of (a) a merger, demerger, dissolution, liquidation, cancellation and/or (b) a change in the controlling shareholder or general partner or beneficial owner, or (c) In the event of other circumstances that may affect the exercise of their shareholdings, their successors, liquidation groups, creditors and other persons who may acquire shareholdings or related rights as a result cannot influence or hinder the performance of this Agreement. Each Target Company Shareholder warrants to WFOE that it has made and caused its shareholders (including indirect shareholders and beneficial interest holders), directors and partners (as applicable) to make all proper arrangements and execute all documents required to facilitate the effective survival of such Target Company Shareholder.

 

4. In the event of a change in the controlling shareholder (or general partner) or beneficial owner of a particular Target Company Shareholder, such Target Company Shareholder shall obtain the prior consent of WFOE, provided that WFOE shall not withhold its consent if the proposed new controlling shareholder (or general partner) or beneficial owner consents in writing and undertakes to procure the continuation of this Agreement by such Target Company Shareholder.

 

5. In the event of a merger, demerger, dissolution, liquidation, filing for bankruptcy, or cancellation of a particular Target Company Shareholder, such Target Company Shareholder shall obtain the prior consent of WFOE, but WFOE shall not withhold its consent in the event that such Target Company Shareholder’s successor consents in writing and undertakes to cause such Target Company Shareholder to continue to perform under this Agreement.

 

6. Target Company Shareholder warrants to WFOE that in the event of death, divorce, bankruptcy, liquidation or other circumstances that may affect the exercise of his or her directly or indirectly held equity interest in the Target Company, his or her spouse, heirs, liquidators and any other person/entity who directly or indirectly acquires an equity interest or related interest as a result of such event will not impair or hinder the performance of this Agreement.

 

 

7. Target Company shareholders warrant to WFOE that they hereby waive their shareholder rights and that they shall not exercise such rights on their own.

 

8. WFOE warrants that it will exercise the exclusive right to purchase under the Exclusive Option Agreement as soon as possible from the date on which the PRC law allows foreign investors to directly or indirectly hold shares to operate the business of the Target Company, in order for WFOE to directly operate the business of the Target Company or to directly hold a corporate equity interest in the Target Company and to terminate the structured contract with the Target Company and other related parties.

 

9. If the representations and warranties of either party are untrue or inaccurate, they shall constitute a material breach by such party.

 

Article 4 Liability for breach of contract

 

1. The Parties agree and acknowledge that a material breach by either party (hereinafter referred to as the “Defaulting Party”) of any of the undertakings made under this Agreement, or a material failure or delay in performance of any of its obligations under this Agreement, shall constitute a default under this Agreement and the Defaulting Party shall be entitled to require the Defaulting Party to rectify or Take Remedial Measures. If the breaching party fails to correct or remedy the breach within a reasonable period of time or within 10 days after written notice to the breaching party and a request for correction, the complying party shall have the right, at its sole discretion, to.

 

(1) WFOE shall have the right to terminate this Agreement and seek damages from the Defaulting Party if the Target Company Shareholder or the Target Company is the Defaulting Party.

 

(2) In the event that WFOE is the defaulting party, the party in compliance shall have the right to seek damages from WFOE, but it shall not have any right to terminate or rescind this Agreement under any circumstances unless otherwise provided by law.

 

2. Notwithstanding the foregoing, the parties agree and acknowledge that in no event shall the Target Company and the Target Company Shareholders be entitled to terminate this Agreement for any reason whatsoever, unless otherwise provided or agreed by law or this Agreement. The validity of this clause shall not be affected by the termination of this Agreement.

 

Article 5 Exclusion and indemnification

 

1. The parties acknowledge that WFOE or the Nominee shall not be held liable or be required to indemnify the other parties to this Agreement in any way, financial or otherwise, in connection with the exercise of the shareholder rights.

 

 

2. the Target Company Shareholders and the Target Company agree to indemnify and hold harmless WFOE or the Nominee from and against all losses suffered by WFOE or the Nominee as a result of the exercise of its shareholder rights, including, without limitation, any losses arising from any lawsuit, charge or claim brought against it by any third party, or from any administrative investigation or sanction by any governmental authority. Provided, however, that no indemnification shall be made for losses that arise out of the willful or gross negligence of the WFOE or Nominee.

 

Article 6 Application of Law and Dispute Resolution

 

1. The conclusion, entry into force, interpretation and dispute settlement of this Agreement shall be governed by PRC law.

 

2. All disputes under this Agreement shall first be settled through friendly consultation. If the dispute is not settled by negotiation within thirty (30) days after the dispute arises, either party shall have the right to submit the dispute to the China International Economic and Trade Arbitration Commission (CIETAC) for arbitration in Beijing by three arbitrators in accordance with the arbitration rules in force at the time of the application. The arbitral award shall be final and binding on all parties to the arbitration. While the arbitration is in progress, each party shall continue to perform its obligations under this Agreement, except for the matter or obligation under dispute.

 

3. If necessary, the arbitration institution shall have the right, prior to making a final decision on the dispute between the parties, to grant WFOE appropriate legal remedies under its authority by either awarding the defaulting party immediate cessation of the default or awarding the defaulting party not to engage in conduct that would cause further damage to the defending party, including: (1) awarding such remedies against the equity or assets of Target Company; (2) awarding such remedies against the equity or assets of Target Company (e.g., to order the Festival Culture to remain in operation or to compel the transfer of assets); (3) awarding the dissolution or liquidation of the Target Company.

 

4. Subject to PRC law, and on the condition that complying with PRC laws, regulations and valid arbitration rules, a court of competent jurisdiction (i.e. the courts of the PRC, the Hong Kong Special Administrative Region of the PRC, the Cayman Islands and the location of the parties’ principal assets) shall have the authority to grant interim relief (e.g. preservation of property, preservation of evidence) in support of the arbitration prior to the constitution of the arbitral tribunal or in appropriate circumstances, ex officio. Or, on the basis of an interlocutory decision of the arbitral institution, to rule that the breaching party immediately ceases the breach or that the breaching party refrains from acts that would cause further damage to the complying party.

 

 

Article 7 Confidentiality

 

1. The Confidential Information (including, but not limited to, business information, customer information, financial information, contracts, etc.) of a party (the “Disclosing Party”) has been or may be disclosed from time to time to the other party (the “Recipient”) prior to the conclusion of this Agreement and during the term of this Agreement. . The Recipient must maintain the confidentiality of the Confidential Information and shall not use the Confidential Information for any purpose other than as expressly provided herein. The foregoing confidentiality provisions shall not apply to information (a) that the Recipient has evidence that it had lawful possession of such information prior to its disclosure to the Disclosing Party; (b) that such information is or will be in the public domain not as a result of the Recipient’s breach of this Agreement; (c) that the Recipient has obtained such information from a third party who is not under a duty of confidentiality with respect to such information; and (d) that any party, in accordance with applicable laws, regulations or regulatory requirements or disclosed to its employees, agents, legal counsel or financial advisors in connection with its normal operations (provided that the Recipient shall ensure that such persons comply with the relevant terms and conditions of this Agreement and shall assume any liability arising from any breach by such persons of the relevant terms and conditions of this Agreement).

 

2. The above obligations of confidentiality are ongoing for the parties to this Agreement and shall not be terminated by the termination of this Agreement.

 

Article 8 Other Terms and Conditions

 

1. Each party shall complete the approval and registration procedures for the extension of the term of operation no later than 3 months prior to the expiry of the term of operation so that this Agreement shall remain in force.

 

2. During the term of this Agreement, one party may not assign its rights or obligations under this Agreement, in part or in whole, to any third party without the prior written consent of the other party, except that WFOE shall have the right to assign all or part of its rights and obligations under this Agreement.

 

3. If any provision of this Agreement is invalid, illegal or unenforceable under Chinese law, all other provisions of this Agreement shall remain in full force and effect. In the event that any provision of this Agreement is held to be invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith and amend this Agreement to achieve the original intent of the parties as nearly as possible in an acceptable manner.

 

4. If any amendment to this Agreement is proposed by the relevant regulatory authority, the parties shall negotiate an amendment to this Agreement accordingly.

 

 

5. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior negotiations, talks and agreements between the parties with respect to such subject matter.

 

6. Failure or delay by a party to exercise a right under this Agreement shall not constitute a waiver of that right and shall not prevent the party from exercising that right again in the future if it has already exercised or partially exercised that right.

 

7. This Agreement shall be legally binding upon the parties hereto and their lawful successors and assigns.

 

8. The Parties may enter into supplemental agreements in connection with this Agreement and its related matters. Any amendment, supplement to this Agreement must be in writing and, except for the assignment by WFOE of its rights under this Agreement pursuant to Article 8.2, no amendment, supplement to this Agreement shall become effective until duly signed by the parties hereto. If any modification or supplement to this Agreement is required by law to obtain a license and/or registration or filing with any governmental agency, the parties shall obtain such license and/or complete such registration or filing in accordance with law.

 

9. This Agreement shall be written in Chinese in nine original copies, one copy for each of the parties, and others shall be retained by the Target Company and shall be of equal legal effect.

 

(No text below, followed by the signature page)

 

 

Annex I

 

Share structure of Beijing Music Festival Culture Communications Co., Ltd

 

	
No.
    	
 
    	
Name
    	
 
    	
Percentage
    	
 
    
	
1
    	
 
    	
Ningbo Huaqiang Ruizhe   Investment Partnership (Limited Partnership)
    	
 
    	
15.3846%
    	
 
    
	
2
    	
 
    	
Suzhou Fengqiao Jichu   Chuangye Investment Partnership (Limited Partnership)
    	
 
    	
6.1538%
    	
 
    
	
3
    	
 
    	
Tianjin Shengxin   Enterprise Management Consulting Partnership (Limited Partnership)
    	
 
    	
15.3846%
    	
 
    
	
4
    	
 
    	
Long YU
    	
 
    	
38.4616%
    	
 
    
	
5
    	
 
    	
He YU
    	
 
    	
23.0769%
    	
 
    
	
6
    	
 
    	
Zheng TU
    	
 
    	
1.5385%
    	
 
    
	
 
    	
 
    	
Total
    	
 
    	
100%
    	
 
    

 

 

Annex II

 

Authorization

 

Ningbo Huaqiang Ruizhe Investment Partnership (Limited Partnership), Suzhou Fengqiao Jichu Chuangye Investment Partnership (Limited Partnership), Tianjin Shengxin Enterprise Management Consulting Partnership (Limited Partnership), Long YU, He YU and Zheng TU(the Company or I), Beijing Music Festival Culture Communications Co., Ltd., and Beijing Lecheng Future Culture Communications Co., Ltd has signed the Power of Attorney on [date]. In accordance with the agreement, the Company/I hereby issue this Authorization.

 

The Company/I, as a shareholder holding a total of 100% equity interest in Beijing Music Festival Culture Communications Co., Ltd. (“Music Festival Culture”), hereby unconditionally and irrevocably authorize WFOE and any of its authorized directors, successors or liquidators (hereinafter referred to as the “Representatives”), as the sole representative of the Company/I, to exercise all shareholder voting rights and other shareholder rights enjoyed by the Company/I in Music Festival Culture in accordance with the Articles of Association of Music Festival Culture and relevant laws, including but not limited to:

 

1. to propose, on behalf of the Company/I, to convene and participate in the general meeting of Music Festival Culture and to sign the minutes and resolutions of the meeting, to exercise the right to vote on all matters requiring discussion and resolution at the general meeting (including but not limited to the appointment, election or removal of directors, supervisors and senior management of the target company), and to sign on behalf of the Company/I any document requiring the signature of the shareholders of Music Festival Culture and to submit to the Company any document requiring the signature of the shareholders of Music Festival Culture. (ii) Any document submitted by the registry authority for filing purposes.

 

2. to make resolutions on behalf of the Company/I on the disposal of the cultural assets of Music Festival Culture.

 

3. to make resolutions on behalf of the Company/I with respect to the dissolution and liquidation of Music Festival Culture and to form a liquidation group on behalf of the Company/I and to exercise the powers of the liquidation group during the liquidation in accordance with the law, including but not limited to making resolutions with respect to the disposal of the assets of Music Festival Culture.

 

4. to decide to transfer or otherwise dispose of the Company’s/my shareholding in the Music Festival Culture.

 

5. any other rights of shareholders to which the Company/I am entitled by virtue of the Articles of Incorporation of Music Festival Culture or by law.

 

 

The Company/I hereby agrees and acknowledges that the Representative shall have full authority to exercise the rights within the above authority in such manner as the Company/I deem appropriate and the Company/I undertake to accept the obligations or liabilities arising from the exercise of such rights by the Representative. All acts done by the Representative in connection with the Company’s/my shareholding shall be deemed to be the Company’s/my own acts and all documents signed by the Representative shall be deemed to be signed by the Company/my own. The Representative may do all such acts on his or her own volition and without seeking the prior consent of the Company/me. For the avoidance of doubt, if necessary (e.g. to meet governmental requirements for approval, registration or filing of documents), the Company/I will provide full assistance to the representative in exercising the power of attorney, including the timely execution of relevant legal documents.

 

This authorization shall be effective from the date of signature by the Company/I, and shall remain valid during the period of validity of the Agreement.

 

The authorization is hereby given.

 

(No text below, followed by signature page)

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