Document:

Exhibit 4.10

 

RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT

 

This RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT (this “Agreement”) is entered into as of May 22, 2014 by and among:

 

(1)              JUPAI INVESTMENT GROUP (the “Company”), a company organized and existing under the laws of the Cayman Islands;

 

(2)              the Persons listed on part 1 of Exhibit A to this Agreement (each a “Founding Shareholder” and collectively the “Founding Shareholders”);

 

(3)              the Persons listed on part 2 of Exhibit A to this Agreement (each an “Founder” and collectively the “Founders”);

 

(4)              the Persons listed on part 3 of Exhibit A to this Agreement (each a “Key Holder Holdco” and collectively the “Key Holder Holdcos”);

 

(5)              the Persons listed on part 4 of Exhibit A to this Agreement (each a “Key Holder” and collectively the “Key Holders”);

 

(6)              the Person listed on part 1 of Exhibit B to this Agreement (the “Series A Investor”); and

 

(7)              the Person listed on part 2 of Exhibit B to this Agreement. (the “Series B Investors”, together with the Series A Investor, each an “Investor” and collectively, the “Investors”).

 

(The above parties are referred to hereinafter individually as a “Party” and collectively the “Parties”).

 

RECITALS

 

WHEREAS, the Series A Investor entered into that certain Series A Convertible Preferred Shares Purchase Agreement, dated as of 20 February 2013, with the Company, the Founding Shareholders, the Founders and certain other parties described therein (as supplemented by a supplemental agreement dated 30 September 2013, the “Series A Share Purchase Agreement”) with respect to the issuance and sale by the Company of 4,216,867 shares (the “Series A Purchased Shares”) of Convertible, Redeemable and Participating Series A Preferred Shares, par value of

 

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US$0.0005 per share, of the Company (the “Series A Preferred Shares”) to the Series A Investor at an aggregate consideration of US$1,500,000.

 

WHEREAS, the Series B Investors entered into that certain Series B Convertible Preferred Shares Purchase Agreement, dated as of 12 November, 2013, as amended from time to time, with the Company, the Founding Shareholders, the Founders and certain other parties described therein (the “Series B Share Purchase Agreement”) with respect to (a) the issuance and sale by the Company of 12,918,340 shares of Convertible, Redeemable and Participating Series B Preferred Shares, par value of US$0.0005 per share, of the Company to E-House (China) Capital Investment Management Limited (“E-House”) at an aggregate consideration of RMB48,000,000;(b) the sale and transfer by Jupai Holding Inc. of 12,918,340 shares of Ordinary Shares, par value of US$0.0005 per share, of the Company to E-House at an aggregate consideration of RMB48,000,000 and 12,918,340 shares of Ordinary Shares, par value of US$0.0005 per share, of the Company to SINA Hong Kong Limited (“SINA”) at an aggregate consideration of RMB48,000,000, which will be re-designated into 25,836,680 Series B Preferred Shares at the closing of Series B financing (collectively, the “Series B Preferred Shares”).

 

WHEREAS, it is a condition precedent to the consummation of transaction contemplated under the Series B Share Purchase Agreement that the parties hereto enter into this Agreement to govern certain transfer of shares of the Company by the Founding Shareholder, Founders, Key Holder Holdcos, Key Holders and the Investors.

 

WHEREAS, the parties hereto intend that this Agreement shall take effect subject to and immediately following the Series B Closing, from and as of the date of the Series B Closing Date (the “Effective Date”).

 

WITNESSETH

 

NOW, THEREFORE, in consideration of the premises set forth above, the mutual promises and covenants set forth herein and other good and valuable consideration, the parties hereby agree as follows:

 

1.              DEFINITIONS.

 

1.1.                  As used in this Agreement:

 

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“Adoption Agreement” means, an agreement, in such form and on such terms as approved by the Preferred Holders, which a Person is required to enter into with or in favour of all the parties pursuant to Section 9.15.

 

“Affiliate” means, (a) with respect to any specified Person, any other Person who or which, directly or indirectly, controls, is controlled by, or is under common control with such specified Person; and (b) in the case of an individual, shall include, without limitation, his spouse, child, brother, sister, parent, trustee of any trust in which such individual or any of his immediate family members is a beneficiary or a discretionary object, or any entity or company Controlled by any of the aforesaid persons. In the case of a Preferred Holder, shall include (i) any Person who holds the Preferred Shares as a nominee for such Preferred Holder, (ii) any shareholder of such Preferred Holder, (iii) any entity or individual who has a direct or indirect interest in such Preferred Holder (including, if applicable, any general partner or limited partner) or any fund manager thereof, (iv) any Person that directly or indirectly Controls, is Controlled by, under common Control with, or is managed by such Preferred Holder or its fund manager, (v) the relatives of any individual referred to in (iii) above, and (vi) any trust Controlled by or held for the benefit of such individuals. For the avoidance of doubt, a Preferred Holder shall not be deemed to be an Affiliate of any Group Company.

 

“Board” means the board of directors of the Company constituted from time to time.

 

“Business Day” shall mean any day that is not a Saturday, Sunday, legal holiday or other day on which commercial banks are required or authorized by law to be closed in the Cayman Islands, Hong Kong, the People’s Republic of China or New York.

 

“Control” means, when used with respect to any Person, power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “affiliated,” “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Conversion Shares” means the Ordinary Shares issued or issuable upon conversion of any Preferred Shares.

 

“Equity Securities” means any Ordinary Shares or Ordinary Share Equivalents or Preferred Shares of the Company now owned or subsequently acquired by any Shareholder.

 

“Exchange Act” means the U.S. Securities and Exchange Act of 1934 and the rules and regulations promulgated thereunder, as amended from time to time.

 

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“Exchange Act Registration” means registration of a company under Section 12 of the Exchange Act or when a company becomes subject to Exchange Act reporting requirements under Section 15(d) of the Securities Act or otherwise.

 

“Preferred Holders” means the holders of Preferred Shares and their permitted transferees and assigns.

 

“Investors’ Rights Agreement” means the Investors’ Rights Agreement among the Investors, the Company, the Founding Shareholders, the Founders and certain other parties described therein dated as of even date hereof.

 

“Majority Holders” means the collectively, the holders of a simple majority of the Series A Preferred Shares, and the holders of a simple majority of the Series B Preferred Shares.

 

“Memorandum and Articles” means the amended and restated memorandum of association and articles of association of the Company previously adopted by resolution in writing of all Shareholders of the Company.

 

“Ordinary Shares” means the Ordinary Shares in the share capital of the Company, par value of US$0.0005 per share.

 

“Ordinary Share Equivalents” means, with respect to any Shareholder, Ordinary Shares owned by such Shareholder together with the Ordinary Shares into or for which any issued and outstanding Preferred Shares or any other issued and outstanding convertible securities (excluding, for the avoidance of doubt, unexercised options or warrants) owned by such Shareholder shall be convertible.

 

“Person” or “person” shall be construed as broadly as possible and shall include an individual, a partnership, a limited liability company, a company, an association, a trust, a joint venture or unincorporated organization and any government organization or authority.

 

“Qualified IPO” has the meaning given to such term in the Memorandum and Articles of the Company, as amended from time to time.

 

“Series A Preferred Shares” means the convertible, redeemable and participating Series A Preferred Shares in the share capital of the Company, par value of US$0.0005 per share.

 

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“Series B Director” has the meaning given to such term in the Memorandum and Articles of the Company, as amended from time to time.

 

“Series B Preferred Shares” means the convertible, redeemable and participating Series B Preferred Shares in the share capital of the Company, par value of US$0.0005 per share.

 

“Shareholder” shall mean a registered holder of Equity Securities (collectively, the “Shareholders”).

 

“Transaction Documents” shall mean this Agreement, the Series B Share Purchase Agreement, the Investors’ Rights Agreement, the Memorandum and Articles, the Director Indemnification Agreement and the Management Rights Letter.

 

1.2.                 Capitalized terms used by not otherwise defined in this Agreement shall have the meanings given them in the Series B Share Purchase Agreement.

 

2.                            RESTRICTIONS ON TRANSFER.

 

2.1.                  Except as otherwise provided in this Agreement, none of the holders of the Ordinary Shares (other than the Conversion Shares) may, directly or indirectly, transfer, sell, give, assign, hypothecate, pledge, encumber, grant a security interest in or otherwise dispose of (whether by operation of law or otherwise) any Equity Securities held by it or any right, title or interest therein or thereto without the prior written consent of the Majority Holders. Any attempt to transfer any Equity Securities or any rights thereunder in violation of the provisions of this Agreement shall be null and void ab initio.

 

2.2.                  Each of the beneficial owners of the Ordinary Shares (other than the Conversion Shares) covenants and agrees to (a) comply with the provisions of this Agreement as if such beneficial owner was the direct and registered holder of such Ordinary Shares; (b) procure that any Shareholder in which such beneficial owner holds a direct or indirect interest complies with the provisions of this Agreement; and (c) not take any action, or omit to take any action, which contravenes the provisions of this Agreement, including this Section 2.2. To avoid any ambiguity, unless this Agreement or any other Transaction Documents expressly provide otherwise, none of the Founders shall, directly or indirectly, transfer, sell, give, assign, hypothecate, pledge, encumber, grant a security interest in or otherwise dispose of (whether by operation of law or otherwise) any Equity Securities it holds in the relevant Founding

 

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Shareholder or any right, title or interest therein or thereto without the prior written consent of the Majority Holders.

 

2.3.                  For the avoidance of doubt, each Preferred Holder may assign and transfer, to any Affiliate of such Preferred Holder or any third party any Equity Securities of the Company held by such Preferred Holder, provided that such Preferred Holder shall notify the Company of such proposed transfer and assignment in advance. The transfer restrictions and requirements provided in this Agreement (except for Section 7.1 and Section 8) shall not apply to any sale or transfer of any Equity Securities by any Preferred Holders.

 

3.                            RIGHT OF FIRST REFUSAL.

 

3.1.                  Transfer Notice. Subject always to Section 2, if at any time a holder of Ordinary Shares (other than the holders of Conversion Shares) (the “Transferor”) proposes to sell, assign, transfer, pledge, hypothecate, or otherwise encumber or dispose of in any way (including transfer by gift), all or any part of any interest in the Equity Securities now or hereafter owned or held by such Transferor to one or more Persons (the “Transferee”) pursuant to an understanding with such Transferee (a “Transfer”), then the Transferor shall give the Company and each other Preferred Holder a written notice of the Transferor’s intention to make the Transfer (the “Transfer Notice”), which Transfer Notice shall include (i) a description of the Equity Securities to be transferred (the “Offered Shares”), (ii) the identity of the prospective Transferee, (iii) the consideration to be paid for each Offered Share (the “Offered Price”), and (iv) the material terms and conditions upon which the proposed Transfer is to be made. The Transfer Notice shall certify that the Transferor has received a bona fide firm offer from the prospective Transferee and in good faith believes a binding agreement for the Transfer is obtainable on the terms set forth in the Transfer Notice.

 

3.2.                  Preferred Holder’s Option.

 

(a)              The Preferred Holders shall have the opportunity to purchase all or any part of the Offered Shares. Each Preferred Holder shall have an option for a period of thirty (30) days (the “Investor Refusal Period”) from the receipt by such Preferred Holder of the Transfer Notice to submit notice of its irrevocable commitment to elect to purchase its respective pro rata share of the Offered Shares at a price per share equal to the Offered Price, and subject to the same material terms and conditions as described in the Transfer Notice.

 

(b)              Each Preferred Holder may exercise such purchase option and, thereby, purchase all

 

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or any portion of its pro rata share (with any re-allotments as provided below) of the Offered Shares, by notifying the Transferor and the Company in writing, before expiration of the Investor Refusal Period as to the number of such Offered Shares which it wishes to purchase (including any re-allotment). For the purposes of sub-section (a) and this subsection (b), each Preferred Holder’s “pro rata” share of the Offered Shares shall be a fraction of such Offered Shares, of which the number of Equity Securities (assuming the exercise, conversion and exchange of all such Equity Securities) owned by such Preferred Holder on the date of the Transfer Notice shall be the numerator and the total number of Equity Securities (assuming the exercise, conversion and exchange of all Equity Securities) held by all Preferred Holders of Equity Securities on the date of the Transfer Notice shall be the denominator.

 

(c)               If any Preferred Holder fails to exercise its right to purchase its full pro rata share of the Offered Shares, the Transferor shall deliver written notice within five (5) days after the expiration of the Investor Refusal Period to the Company and any other Preferred Holders specifying the number of unpurchased Offered Shares (the “Second Transfer Notice”). Each other Preferred Holder that exercises in full its right of first refusal under sub-section (b) above (an “Exercising Holder”) shall have a right of re-allotment, and may exercise an additional right to purchase such unpurchased Offered Shares by notifying the Transferor and the Company in writing within ten (10) days after receipt of the Second Transfer Notice; provided, however, that if the Exercising Holders desire to purchase in aggregate more than the number of such unpurchased Offered Shares, then such unpurchased Offered Shares will be allocated to the extent necessary among the Exercising Holders in accordance with their relative pro rata shares.

 

(d)              Each Preferred Holder shall be entitled to apportion Offered Shares to be purchased among its Affiliates, provided that such Preferred Holder notifies the Transferor of such allocation.

 

(e)               If any Preferred Holder gives the Transferor notice that it desires to purchase its pro rata share of the Offered Shares and, as the case may be, its re-allotment, then payment for the Offered Shares shall be by check or wire transfer, against delivery of the Offered Shares to be purchased at a place agreed by the parties and at the time of the scheduled closing therefor, which shall be no later than sixty (60) days after the Preferred Holder’s receipt of the Transfer Notice, unless the value of the purchase price has not yet been established pursuant to Section 3.3.

 

(f)                Immediately after the purchase by any holder of the Series A Preferred Shares of all or any portion of its pro rata share of the Offered Shares, the parties shall procure such Offered Shares to be converted into Series A Preferred Shares or preferred shares with rights and privileges that are same with or pari passu with Series A Preferred Shares, as such holder of the Series A Preferred

 

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Holder may elect, at the then applicable conversion ratio. Immediately after the purchase by any holder of the Series B Preferred Shares of all or any portion of its pro rata share of the Offered Shares, the parties shall procure such Offered Shares to be converted into Series B Preferred Shares or preferred shares with rights and privileges that are same with or pari passu with Series A Preferred Shares, as such holder of the Series B Preferred Holder may elect, at the then applicable conversion ratio.

 

3.3.         Valuation of Property.  Should the purchase price specified in the Transfer Notice be payable in whole or in part in property other than cash or evidences of indebtedness, the cash equivalent value of the non-cash consideration will be determined by the Board (including the affirmative consent of the Series B Director which shall not be unreasonably withheld or delayed by the Series B Director) in good faith, which determination shall be binding upon the relevant parties, absent fraud or error.

 

4.                   HOLDERS’ CO-SALE RIGHT.

 

4.1.         In the event of any proposed Transfer pursuant to Section 3, to the extent any Preferred Holder does not exercise its rights of first refusal as to all or any part of the Offered Shares pursuant to Section 3.2, each Preferred Holder (a “Selling Holder”) that does not purchase Offered Shares pursuant to Section 3.2 shall have an option for a period of thirty (30) days from the end of the Investor Refusal Period to participate in such sale of Equity Securities on the same terms and conditions as those being offered to the Transferor and in no event less favorable to the Transferor than those specified in the Transfer Notice. Each Selling Holder shall send notice to the Transferor indicating the number of Equity Securities the Selling Holder wishes to sell under its right to participate. To the extent one or more of the Selling Holders exercise such right of participation in accordance with the terms and conditions set forth below, the number of Equity Securities that the Transferor may sell in the Transfer to the Transferee shall be correspondingly reduced.

 

4.2.         Each Selling Holder may elect to sell up to such number of Equity Securities equal to (on a fully converted basis) the product obtained by multiplying (i) the aggregate number of Ordinary Shares proposed to be sold to the Transferee (including the number of Ordinary Shares that would be issuable upon the exercise, conversion or exchange of Ordinary Share Equivalents) by (ii) a fraction, the numerator of which is the number of Ordinary Shares (including the number of Ordinary Shares that would be issuable upon the exercise, conversion or exchange of Ordinary Share Equivalents) owned by the Selling Holder on the date of the Second Transfer Notice and the denominator of which is the total number of Ordinary Shares (including the

 

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number of Ordinary Shares that would be issuable upon the exercise, conversion or exchange of Ordinary Share Equivalents) owned by all Selling Holders and the Transferor on the date of the Second Transfer Notice.

 

4.3.         Each Selling Holder shall effect its participation in the sale by promptly delivering to the Transferor for transfer to the Transferee one or more certificates, properly endorsed for transfer, which represent the type and number of Equity Securities which such Selling Holder elects to sell; provided, however that if the prospective Transferee objects to the delivery of Equity Securities in lieu of Ordinary Shares, such Selling Holder shall convert such Equity Securities into Ordinary Shares and deliver certificates corresponding to such Ordinary Shares. The Company agrees to make any such conversion of Equity Securities concurrent with the actual transfer of Ordinary Shares to the Transferee and contingent on such transfer.

 

4.4.         The share certificate or certificates that a Selling Holder delivers to the Transferor pursuant to Section 4.3 shall be transferred to the prospective Transferee in consummation of the sale of the Equity Securities pursuant to the terms and conditions specified in the Transfer Notice, and the Transferor shall concurrently therewith remit to such Selling Holder that portion of the sale proceeds to which such Selling Holder is entitled by reason of its participation in such sale.

 

4.5.         To the extent that any prospective Transferee prohibits the participation of a Selling Holder exercising its co-sale rights hereunder in a proposed Transfer or otherwise refuses to purchase shares or other securities from a Selling Holder exercising its co-sale rights hereunder, the Transferor shall not sell to such prospective Transferee any Equity Securities unless and until, simultaneously with such sale, the Transferor shall purchase such shares or other securities from such Selling Holder for the same consideration and on the same terms and conditions as the proposed Transfer described in the Transfer Notice.

 

5.                   NON-EXERCISE OF RIGHTS.

 

5.1.         To the extent that the Preferred Holders have not exercised their rights to purchase all or any part of the Offered Shares within the time periods specified in Section 3 and have not exercised their rights to participate in the sale of all of the remaining Offered Shares within the time periods specified in Section 4, the Transferor shall have a period of ninety (90) days from the expiration of such rights in which to sell the remaining Offered Shares to the Transferee identified in the Transfer Notice upon terms and conditions (including the purchase price) no more favorable than those specified in the Transfer Notice.

 

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5.2.         The Parties agree that each Transferee shall, prior to the consummation of any Transfer, have executed documents, to the satisfaction of the Preferred Holders and the Company, assuming the obligations of such Transferor under this Agreement and other Transaction Documents with respect to the transferred Ordinary Shares. In the event the Transferor does not consummate the sale or disposition of the Offered Shares within ninety (90) days from the expiration of such rights, the Preferred Holders’ first refusal rights under Section 3 and the Preferred Holders’ co-sale rights under Section 4 shall continue to be applicable to any subsequent disposition of the Offered Shares by the Transferor until such rights lapse in accordance with the terms of this Agreement.

 

5.3.         The exercise or non-exercise under Sections 3 and Section 4 of the rights of the Holders to purchase Equity Securities from a Transferor or the Holders to participate in the sale of Equity Securities by a Transferor shall not adversely affect their rights to make subsequent purchases from the Transferor of Equity Securities or subsequently participate in sales of Equity Securities by Transferor hereunder.

 

6.                   PERMITTED TRANSFER.

 

6.1.         The restrictions set forth in Sections 3 and Section 4 shall not apply to:

 

(a)                       any sale or transfer of Ordinary Shares to the Company pursuant to a repurchase right or right of first refusal held by the Company in the event of a termination of employment or consulting relationship or for other reasons that are approved by the Board including the affirmative vote of the Series B Director which shall not be unreasonably withheld or delayed by the Series B Director; and/or

 

(b)                       any transfer to the parents, children or spouse, or any offshore holding companies solely owned by such holder legally and beneficially, or a trust for the benefit of such persons, of any holder of Ordinary Shares for bona fide estate planning purposes (each transferee pursuant to the foregoing subsection (a) and this subsection (b), a “Permitted Transferee”), provided that adequate documentation therefor, including without limitation to the reasonable evidence of the bona fide estate planning or bona fide tax planning purpose for such Transfer and reasonable evidence of the satisfaction of all applicable filings or registrations required by SAFE, is provided to the Preferred Holders to their satisfaction and that any such Permitted Transferee agrees in writing to be bound by this Agreement in place of the relevant transferor; provided, further, that such Transferor shall remain jointly and severally liable for any breach by such Permitted Transferee (other than the Company in its capacity as Permitted Transferee) of any provision hereunder.

 

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6.2.                            If a Transferor wishes to transfer Equity Securities to a Permitted Transferee under Section 6.1, it shall give notice to the Company and the Preferred Holders of its intention to make such a transfer not less than seven (7) days prior to effecting such transfer, which notice shall state the name and address of each Permitted Transferee to whom such transfer is proposed, the relationship of such Permitted Transferee to the Transferor, and the number of Equity Securities proposed to be transferred to such Permitted Transferee.

 

6.3.                            No transfer may be made pursuant to Section 6.1 unless:

 

(a)                                 the transferee has agreed in writing to be bound by the terms and conditions of this Agreement and other Transaction Documents pursuant to an instrument in form and substance reasonably acceptable to the Preferred Holders;

 

(b)                                 the transfer complies in all respects with the applicable provisions of this Agreement;

 

(c)                                  the transfer complies in all respects with applicable federal and state securities laws and other applicable laws and regulations, including, without limitation, the Securities Act, and will not affect the record of continuous operation of the Company according to US GAAP or IFRS. If requested by the Company, an opinion of counsel to such transferring Shareholder shall be supplied to the Company, at such transferring Shareholder’s expense, to the effect that such transfer complies with the applicable federal and state securities laws and has no adverse affect on the continuous operation record of the Company; and

 

(d)                                 each such Transferee (except the Company in its capacity as the Transferee), prior to the consummation of the Transfer, shall have executed documents satisfactory to the Preferred Holders and the Company, assuming the obligations of such Founder, Founding Shareholder, Key Holder, and/or Key Holder Holdco, as the case may be, under this Agreement and other Transaction Documents as a Founder, Founding Shareholder, Key Holder, and/or Key Holder Holdco with respect to the Offered Shares, provided further, that the Transferor shall remain liable for any breach by such Permitted Transferee of any provision under this Agreement and other Transaction Documents.

 

7.                                      PROHIBITED TRANSFER.

 

7.1.                            Prohibited Transferees. Notwithstanding anything to the contrary in this Agreement, no Transferor shall transfer any Equity Securities of the Company to (i) any entity which, in the determination of the majority of the Company’s Board, including the affirmative approval or consent of Series B Director which shall not be unreasonably withheld or delayed by the

 

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Series B Director, directly or indirectly competes with the Company, or (ii) any customer, distributor or supplier of the Company, if the majority of the Company’s Board, including the Series B Director should determine that such transfer would result in such customer, distributor or supplier receiving information that would place the Company at a competitive disadvantage with respect to such customer, distributor or supplier.

 

7.2.                            Prohibited Transfer. In the event any holder of Equity Securities (the “Transferring Holder”) should sell any Equity Securities in disregard or in contravention of the right of first refusal or co-sale rights under this Agreement (a “Prohibited Transfer”), the Preferred Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and such Transferring Holder shall be bound by the applicable provisions of such option.

 

7.3.                            Put Right. Without prejudice to any other rights and remedies available to the Preferred Holders, in the event of a Prohibited Transfer, each Preferred Holder shall have the right to sell to the Transferring Holder the type and number of Equity Securities equal to the number of Equity Securities such Preferred Holder would have been entitled to transfer to the third-party Transferee under Section 4 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms hereof. Such sale shall be made on the following terms and conditions:

 

(a)                                 The price per share at which the Equity Securities are to be sold to the Transferring Holder shall be equal to the price per share paid by the third-party Transferee to the Transferring Holder in the Prohibited Transfer. The Transferring Holder shall also reimburse each Preferred Holder for any and all reasonable fees and expense, including legal fees and out-of-pocket expenses, incurred pursuant to the exercise or the attempted exercise of such Preferred Holder’s rights under Section 3 and Section 4.

 

(b)                                 Within ninety (90) days after the later of the date on which the Preferred Holder (i) receives notice of the Prohibited Transfer or (ii) otherwise becomes aware of the Prohibited Transfer, such Preferred Holder shall, if exercising its rights under this Section 7, deliver to the Transferring Holder the certificate or certificates and instruments of transfer properly endorsed for transfer representing the Equity Securities to be sold under this Section 7 by such Preferred Holder.

 

(c)                                  The Transferring Holder shall, within seven (7) Business Days upon receipt of the certificate or certificates and instruments of transfer for the Equity Securities to be sold by a Preferred Holder pursuant to this Section 7, pay the aggregate purchase price therefor and the amount of

 

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reimbursable fees and expenses, as specified in Section 7.3(a), in cash or by other means acceptable to the Preferred Holder. The Company will concurrently therewith record such transfer on its books and update its register of members and will promptly thereafter and in any event within five (5) Business Days reissue certificates, as applicable, to the Transferring Holder and the Preferred Holder reflecting the new securities held by them giving effect to such transfer.

 

7.4.                            Voidability of Prohibited Transfer. Any attempt to transfer Equity Securities in violation of Section 2, Section 3 or Section 4 shall be void, and the Company agrees it will not effect such a transfer nor will it treat any alleged Transferee as the holder of such Equity Securities without the written consent of the Majority Holders.

 

8.                                      LOCK-UP

 

8.1.                            Agreement to Lock-Up. Each party to this Agreement hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the Company’s initial public offering (the “IPO”) and ending on the date specified by the Company and the managing underwriter (which period shall not exceed 180 days) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Equity Securities of the Company held immediately prior to the effectiveness of the registration statement for the IPO or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such Equity Securities, whether any such transaction described in subsection (i) or (ii) above is to be settled by delivery of Ordinary Shares or other securities, in cash or otherwise. The foregoing provisions of this Section 8 shall apply only to the IPO, shall not apply to the sale of any Equity Securities to an underwriter pursuant to an underwriting agreement, and shall only be applicable to the Preferred Holders if all officers, directors and greater than one percent (1%) stockholders of the Company enter into similar agreements. The underwriters in connection with the IPO are intended third-party beneficiaries of this Section 8 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each party to this Agreement further agrees to execute such agreements as may be reasonably requested by the underwriters in the IPO that are consistent with this Section 8 or that are necessary to give further effect thereto.

 

8.2.                            Stop Transfer Instructions. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Equity Securities of any party to this Agreement (and transferees and assignees thereof) until the end of such restricted period.

 

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9.                                      MISCELLANEOUS.

 

9.1.                            Governing Law. This Agreement shall be governed by and construed under the laws of the Hong Kong Special Administrative Region of the PRC, without regards to conflicts of law principles.

 

9.2.                            Dispute Resolution.

 

(a)                                 Any dispute, controversy or claim arising out of or relating to this Agreement, or the interpretation, breach, termination or validity hereof, shall first be subject to resolution through consultation of the parties to such dispute, controversy or claim. Such consultation shall begin immediately after one party hereto has delivered to the other party hereto a written request for such consultation (the “Consultation Request”). If within thirty (30) days following the date on which the Consultation Request is delivered the dispute cannot be resolved, the dispute shall be submitted to arbitration upon the request of either party with notice to the other (the “Notice”).

 

(b)                                 The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the “Centre”) in accordance with the then effective arbitration rules of the Centre. There shall be three arbitrators. The complainant and the respondent to such dispute shall each select one arbitrator within thirty (30) days after giving or receiving the Notice. The Chairman of the Centre shall select the third arbitrator, who shall be qualified to practice law in Hong Kong. All such arbitrators shall be freely selected, and the parties and the Chairman of the Center shall not be limited in their selection to any prescribed list. If either party does not appoint an arbitrator who has consented to participate within thirty (30) days after selection of the first arbitrator, the relevant appointment shall be made by the Chairman of the Centre.

 

(c)                                  The arbitration proceedings shall be conducted in English. The arbitration tribunal shall apply the Arbitration Rules of the Centre in effect at the time of the Notice. However, if such rules are in conflict with the provisions of this Section 9.2, including the provisions concerning the appointment of arbitrators, the provisions of this Section 9.2 shall prevail.

 

(d)                                 Each party hereto shall cooperate with the other in making full disclosure of and providing complete access to all information and documents requested by the other in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on such party.

 

(e)                                  The award of the arbitration tribunal shall be final and binding upon the disputing parties, and either party may apply to a court of competent jurisdiction for enforcement of such award.

 

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(f)                                   Either party shall be entitled to seek preliminary injunctive relief, if possible, from any court of competent jurisdiction pending the constitution of the arbitral tribunal.

 

9.3.                            Notices. Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (i) when hand delivered to the other party; (ii) when sent by facsimile at the number set forth on the signature page hereof upon successful transmission report being generated by the sender’s machine; (iii) three (3) Business Days after deposit with an international overnight delivery service, postage prepaid, addressed to the parties as set forth on the signature page with next-business-day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider, or (iv) when sent by electronic mail at the email address set forth in Exhibit Chereof.

 

Each person making a communication hereunder by facsimile or electronic mail shall promptly confirm by telephone to the person to whom such communication was addressed each communication made by it by facsimile or electronic mail pursuant hereto but the absence of such confirmation shall not affect the validity of any such communication. A party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 9.3 by giving the other party written notice of the new address in the manner set forth above.

 

9.4.                            Entire Agreement; Prior Agreements; Conflicts. This Agreement, together with all the exhibits and schedules hereto, constitutes and contains the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements, understandings, duties or obligations between the parties respecting the subject matter hereof. In the event of any conflicts with the Memorandum and Articles, the provisions of this Agreement shall prevail.

 

9.5.                            Severability. In the event one or more of the provisions of this Agreement should, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

 

9.6.                            Counterparts; Facsimile. This Agreement may be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

15

 

9.7.                            Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

9.8.                            Language. This Agreement and all other Transaction Agreement are entered into in English only. Any Chinese translation of the Transaction Agreements, if any, is for reference only and shall not be a legally binding document. Accordingly, the English version will prevail in the event of any inconsistency between the English and any Chinese translations thereof.

 

9.9.                            Effective Date. This Agreement shall take effect subject to and immediately following the Series B Closing, from and as of the date of the Series B Closing.

 

9.10.                     Further Assurances. At any time or from time to time after the date hereof, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder.

 

9.11.                     Costs of Enforcement. If any party to this Agreement seeks to enforce its rights under this Agreement by legal proceedings, the non-prevailing party shall pay all costs and expenses incurred by the prevailing party, including, without limitation, all reasonable attorneys’ fees.

 

9.12.                     Aggregation of Rights. All Ordinary Shares, Preferred Shares, and Ordinary Share Equivalents held or acquired by a Preferred Holder and its Affiliates or held or acquired by each of the Founders, the Key Holders and its/his Affiliates directly or indirectly shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.

 

9.13.                     Interpretation; Captions. This Agreement shall be construed according to its fair language. The rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement. The captions to sections of this Agreement have been inserted for identification and reference purposes only and shall not be used to construe or interpret this Agreement.

 

9.14.                     Consent Required to Amend, Terminate or Waive. This Agreement may be amended or modified and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (i) the Company, (ii) the holders of a majority of the Ordinary Shares (excluding the Conversion Shares) (voting together as a single class and on an as-converted basis); and (iii)

 

16

 

the holders of a majority of the Ordinary Shares issued or issuable upon conversion of the Preferred Shares (voting as a single class and on an as-converted basis).

 

9.15.                     New Shareholders; Assignment of Rights. Any Transferor shall cause any Transferee of its Equity Securities in the Company that is not already a party to this Agreement, as a condition to the transfer of Equity Securities to such new shareholder, to become a party to this Agreement by executing and delivering (i) the Adoption Agreement attached to this Agreement as Exhibit D or (ii) a counterpart signature page hereto agreeing to be bound by and subject to the terms of this Agreement as a Shareholder hereunder. In any event, provided that the transfer or issuance of such Equity Securities shall not have been made in contravention of this Agreement or applicable laws, each such person shall thereafter be deemed a Shareholder for all purposes under this Agreement and the provisions of this Agreement shall inure to the benefit of, and shall be binding upon, the successors and permitted assigns of the parties hereto. The Company shall not record the transfer of any equity securities of the Company on its Register of Members, or issue share certificates with respect to such transfers of equity securities of the Company, unless such transfer is made in compliance with this Section 9.15. Except as expressly stated otherwise, the rights of the Preferred Holders set forth in this Agreement are fully assignable to any person who holds or is acquiring the Preferred Shares through a permitted transfer.

 

9.16.                     Termination. The rights and obligations of the Parties under Section 3,  Section 4 and Section 7 shall terminate upon the earlier of (i) the closing of a Qualified IPO by the Company of its Ordinary Shares, (ii) the closing of a sale of all or substantially all of the Company’s assets or the acquisition of the Company by another entity by means of merger or consolidation resulting in the exchange of the outstanding shares of the Company’s shares for securities issued or other consideration paid, or caused to be issued or paid, by the acquiring entity or its subsidiary approved by the Majority Holders, or (iii) the date on which this Agreement is terminated by operation of law or the occurrence of an Exchange Act Registration; provided, that upon the transfer by any Shareholder of all securities in the Company owned by it in accordance with the provisions hereof, such Shareholder shall automatically cease to be a party to this Agreement and shall have no further rights or obligations hereunder.

 

9.17.                     Endorsement of Share Certificates. Each certificate representing any Equity Securities now or hereafter owned by a Shareholder or issued to any Person in connection with a transfer pursuant to Section 3 or Section 4 hereof shall be endorsed by the Company with a legend reading substantially as follows:

 

17

 

“THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO CERTAIN TERMS, CONDITIONS AND RESTRICTIONS SET FORTH IN A RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT BY AND AMONG THE HOLDER HEREOF, THE COMPANY AND CERTAIN OTHER SHAREHOLDERS OF THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.”

 

The Company, by its execution of this Agreement, agrees that it will cause the certificates evidencing Equity Securities subject to this Agreement issued after the date hereof to bear the legend required by this Section 9.17 of this Agreement, and it shall supply, free of charge, a copy of this Agreement to any holder of a certificate evidencing Equity Securities upon written request from such holder to the Company at its principal office. The parties to this Agreement do hereby agree that the failure to cause the certificates evidencing the Equity Securities to bear the legend required by this Section 9.17 herein and/or the failure of the Company to supply, free of charge, a copy of this Agreement as provided hereunder shall not affect the validity or enforcement of this Agreement.

 

9.18.                     Share Splits, Share Dividends, etc. In the event of any issuance of Equity Securities of the Company hereafter to any of the Founding Shareholders (including, without limitation, in connection with any share split, share dividend, recapitalization, reorganization, or the like), such Equity Securities shall become subject to this Agreement and shall be endorsed with the legend set forth in Section 9.17.

 

[The remainder of this page intentionally left blank]

 

18

 

IN WITNESS WHEREOF, the parties hereto have executed this Right of First Refusal and Co-sale Agreement as of the day and year herein above first written. 

 

	
 
    	
COMPANY:   
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Jupai   Investment Group (Cayman) 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Hu Tianxiang
    
	
 
    	
Name:   Hu Tianxiang
    
	
 
    	
Title:   Director
    

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Right of First Refusal and Co-sale Agreement as of the day and year herein above first written. 

 

	
 
    	
FOUNDERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   HU TIANXIANG
    
	
 
    	
HU   TIANXIANG 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Li Keliang
    
	
 
    	
Li   Keliang 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ YAO WEISHI
    
	
 
    	
YAO   WEISHI 
    

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Right of First Refusal and Co-sale Agreement as of the day and year herein above first written.

 

 

	
 
    	
FOUNDING   SHAREHOLDERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Jupai   Holding Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Hu Tianxiang
    
	
 
    	
Name:   Hu Tianxiang
    
	
 
    	
Title:   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Jupai   Capital Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Li Keliang
    
	
 
    	
Name:   Li Keliang
    
	
 
    	
Title:   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Century   Crest Global Limited
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Yao Weishi
    
	
 
    	
Name:   Yao Weishi
    
	
 
    	
Title:   Director
    

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Right of First Refusal and Co-sale Agreement as of the day and year herein above first written.

 

	
 
    	
KEY   HOLDERS
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Shen Yacheng
    
	
 
    	
 
    
	
 
    	
Shen   Yacheng 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Zhang Yichi
    
	
 
    	
 
    
	
 
    	
Zhang   Yichi 
    

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Right of First Refusal and Co-sale Agreement as of the day and year herein above first written. 

 

 

	
 
    	
KEY   HOLDER’S HOLDCOS
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Golden   Keen Enterprise Limited.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Shen Yacheng
    
	
 
    	
 
    
	
 
    	
Name:   Shen Yacheng
    
	
 
    	
Title:   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Beijing   Dragon Limited
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Zhang Yichi
    
	
 
    	
Name:   Zhang Yichi
    
	
 
    	
Title:   Director
    

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Right of First Refusal and Co-sale Agreement as of the day and year herein above first written. 

 

 

	
 
    	
SERIES   A INVESTOR:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ZERO2IPO   CHINA FUND II, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Danny Chung
    
	
 
    	
Name:   Danny Chung
    
	
 
    	
Title:   Managing Director
    

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Right of First Refusal and Co-sale Agreement as of the day and year herein above first written. 

 

 

	
 
    	
SERIES   B INVESTOR:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
E-HOUSE   (CHINA) CAPITAL INVESTMENT
    
	
 
    	
MANAGEMENT   LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Xin Zhou
    
	
 
    	
Name:    (Xin Zhou)
    
	
 
    	
Title:   Director
    

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Right of First Refusal and Co-sale Agreement as of the day and year herein above first written. 

 

 

	
 
    	
SERIES   B INVESTOR:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SINA   HONG KONG LIMITED 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Charles Guowei Chao 
    
	
 
    	
Name:   Charles Guowei Chao 
    
	
 
    	
Title:   Director
    

 

 

EXHIBIT A

 

Part 1 Founding Shareholders

 

	
Name of Founding
   Shareholders
    	
 
    	
Place of Incorporation
   and Company Number
    	
 
    	
Ultimate
   Beneficiary
    	
 
    	
Number of Ordinary
   Shares Held
    
	
Jupai Holding Inc
    	
 
    	
British Virgin Islands

 

BVI Company Number:   1717817
    	
 
    	
Tianxiang HU

 

    	
 
    	
46,155,647 Ordinary Shares
    
	
Jupai Capital Inc
    	
 
    	
British Virgin Islands

 

BVI Company Number:   1717734
    	
 
    	
Keliang LI

 

    	
 
    	
8,332,974 Ordinary Shares
    
	
Century Crest Global   Limited
    	
 
    	
British Virgin Islands

 

BVI Company Number:   1793044
    	
 
    	
Weishi YAO

 

    	
 
    	
7,674,699 Ordinary Shares
    

 

 

EXHIBIT A

 

Part 2 Founders

 

	
Name of Founder
    	
 
    	
PRC Identity
   Card No.
    	
 
    	
Address
    	
 
    	
Number of Ordinary
   Shares owned
   beneficially
    
	
Tianxiang HU

 

    	
 
    	
 
    	
 
    	
 
    	
 
    	
46,155,647 Ordinary Shares
    
	
Keliang LI

 

    	
 
    	
 
    	
 
    	
 
    	
 
    	
8,332,974 Ordinary Shares
    
	
Weishi YAO

 

    	
 
    	
 
    	
 
    	
 
    	
 
    	
7,674,699 Ordinary Shares
    

 

 

EXHIBIT A

 

Part 3 Key Holder Holdcos

 

	
Name of Key
   Holder Holdcos
    	
 
    	
Place of Incorporation
   and Company Number
    	
 
    	
Ultimate
   Beneficiary
    	
 
    	
Number of Ordinary
   Shares Held
    
	
Golden Keen Enterprises   Limited
    	
 
    	
British Virgin Islands

 

BVI Company Number:   1790503
    	
 
    	
Yacheng SHEN

 

    	
 
    	
6,000,000 Ordinary Shares
    
	
Beijing Dragon Limited
    	
 
    	
British Virgin Islands

 

BVI Company Number:   1793137
    	
 
    	
Yichi ZHANG

 

    	
 
    	
6,000,000 Ordinary Shares
    

 

 

EXHIBIT A

 

Part 4 Key Holders

 

	
Name of Key Holders
    	
 
    	
PRC Identity
   Card No.
    	
 
    	
Address
    	
 
    	
Number of Ordinary
   Shares owned
   beneficially (subject to
   repurchase pursuant to
   Section 7.13)
    
	
Yacheng SHEN

    	
 
    	
 
    	
 
    	
 
    	
 
    	
6,000,000 Ordinary Shares
    
	
Yichi ZHANG

    	
 
    	
 
    	
 
    	
 
    	
 
    	
6,000,000 Ordinary Shares
    

 

 

EXHIBIT B

 

Part 1 Series A Investor

 

Name of Investor

 

Zero2IPO China Fund II, L.P.

 

 

EXHIBIT B

 

Part 2 Series B Investors

 

Name of Investors

 

E-House (China) Capital Investment Management Limited (“E-House”)

 

SINA Hong Kong Limited (“SINA”)

 

 

EXHIBIT C

 

Notices

 

Company

 

Address: SuiteA-C,10/F,Jinsui Building,No.379 South Pudong Road,Pudong District, Shanghai, PRC

Telephone: +86 (021) 68367031

Fax No.: +86 (021) 68367031

Contact Person: Li Zhuoran

 

BVI Company

 

Address: SuiteA-C,10/F,Jinsui Building,No.379 South Pudong Road,Pudong District, Shanghai, PRC

Telephone: +86 (021) 68367031

Fax No.: +86 (021) 68367031

Contact Person: Li Zhuoran

 

HK Company

 

Address: SuiteA-C,10/F,Jinsui Building,No.379 South Pudong Road,Pudong District, Shanghai, PRC

Telephone: +86 (021) 68367031

Fax No.: +86 (021) 68367031

Contact Person: Li Zhuoran

 

WFOE

 

Address: SuiteA-C,10/F,Jinsui Building,No.379 South Pudong Road,Pudong District, Shanghai, PRC

Telephone:+86 (021) 68367031

Fax No.:+86 (021) 68367031

Contact Person: Li Zhuoran

 

Domestic Entity

 

Address: SuiteA-C,10/F,Jinsui Building,No.379 South Pudong Road,Pudong District, Shanghai, PRC

Telephone:+86 (021) 68367031

Fax No.:+86 (021) 68367031

Contact Person: Li Zhuoran

 

Founders

 

HU Tianxiang

 

Address:

Telephone:

Fax No.: 

 

LI Keliang

 

 

Address: 

Telephone:

Fax No.:

 

YAO Weishi

 

Address: 

Telephone:

Fax No.: 

 

Founding Shareholders

 

Jupai Holding Inc

 

Address:SuiteA-C,10/F,Jinsui Building,No.379 South Pudong Road,Pudong District, Shanghai, PRC

Telephone:+86 (021) 68367031

Fax No.: +86 (021) 68367031

Contact Person: Li Zhuoran

 

Jupai Capital Inc.

 

Address:SuiteA-C,10/F,Jinsui Building,No.379 South Pudong Road,Pudong District, Shanghai, PRC

Telephone:+86 (021) 68367031

Fax No.:+86 (021) 68367031

Contact Person: Li Zhuoran

 

Century Crest Global Limited

 

Address:SuiteA-C,10/F,Jinsui Building,No.379 South Pudong Road,Pudong District, Shanghai, PRC

Telephone:+86 (021) 68367031

Fax No.:+86 (021) 68367031

Contact Person: Li Zhuoran

 

Key Holders

 

SHEN Yacheng

 

Address: 

Telephone:

Fax No.:

 

ZHANG Yichi

 

Address: 

Telephone:

Fax No.:

 

Key Holder Holdcos

 

Golden Keen Enterprises Limited

 

Address:SuiteA-C,10/F,Jinsui Building,No.379 South Pudong Road,Pudong District, Shanghai, PRC

Telephone:+86 (021) 68367031

 

 

Fax No.:+86 (021) 68367031

Contact Person: Li Zhuoran

 

Beijing Dragon Limited

 

Address:SuiteA-C,10/F,Jinsui Building,No.379 South Pudong Road,Pudong District, Shanghai, PRC

Telephone:+86 (021) 68367031

Fax No.:+86 (021) 68367031

Contact Person: Li Zhuoran

 

Series A Investor

 

Zero2IPO Fund II, L.P.

 

Address: 2101,21/F Westlands Centre, 20 Westlands Road, Quarry Bay, HongKong

Telephone: 86 18601712515

Fax No.:

Contact Person: Ni Zhengdong

 

Series B Investors

 

E-House (China) Capital Investment Management Limited

 

Address: Room 1706, 17/F, Two Exchange Square, Central, Hong Kong

Telephone: 852 2110 1400

Fax No.: 852 2110 1404

E-mail: michelle@ehousehk.com

Contact Person: Ms Michelle Chu

 

SINA Hong Kong Limited

 

Address:  

Telephone:010-58983036

Fax No.:010-82607527

Contact Person: Gu Haiyan 

 

 

EXHIBIT D

 

ADOPTION AGREEMENT

 

This Adoption Agreement (the “Adoption Agreement”) is executed on                        , 201    , by the undersigned (the “Holder”) pursuant to the terms of that certain Right of First Refusal and Co-Sale Agreement dated as of                    , 201     (the “Agreement”), by and among Jupai Investment Group (the “Company”) and certain of its shareholders, as such Agreement may be amended or amended and restated hereafter. Capitalized terms used but not defined in this Adoption Agreement shall have the respective meanings ascribed to such terms in the Agreement. By the execution of this Adoption Agreement, the Holder agrees as follows.

 

1.1                               Acknowledgement. The Holder acknowledges that the Holder is acquiring certain shares of the capital stock of the Company (the “Stock”) for one of the following reasons (Check the correct box):

 

o                                    as a transferee of Ordinary Shares from a party in such party’s capacity as a holder of Ordinary Shares (other than the Conversion Shares) bound by the Agreement, or a new party who is receiving Ordinary Shares from the Company, and after such transfer or receipt, the Holder shall be considered a holder of Ordinary Shares (other than the Conversion Shares) and a “Shareholder” for all purposes of the Agreement.

 

o                                    as a transferee of Equity Securities from a party in such party’s capacity as a holder of the Preferred Shares (including any Conversion Shares) bound by the Agreement, or a new party who is receiving Equity Securities from the Company, and after such transfer, the Holder shall be considered a holder of the Preferred Shares and a “Shareholder” for all purposes of the Agreement.

 

1.2                               Agreement. The Holder hereby (a) agrees that the Stock, and any other shares of capital stock or securities required by the Agreement to be bound thereby, shall be bound by and subject to the terms of the Agreement and (b) adopts the Agreement with the same force and effect as if the Holder were originally a party thereto.

 

1.3                               Notice. Any notice required or permitted by the Agreement shall be given to the Holder at the address or facsimile number listed below the Holder’s signature hereto.

 

 

	
HOLDER:
    	
 
    	
 
    	
ACCEPTED AND AGREED:
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
JUPAI INVESTMENT GROUP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name and Title of Signatory
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
Facsimile Number:Exhibit 4.11

 

SHARE PURCHASE AGREEMENT

 

THIS SHARE PURCHASE AGREEMENT (this “Agreement”) is made and entered into on August 22, 2014, by and among:

 

(1)                               Jupai Investment Group, an exempted limited liability company organized under the laws of the Cayman Islands (the “Company”),

 

(2)                               Jupai Holding Inc., a limited liability company organized under the laws of the British Virgin Islands (the “Selling Shareholder”),

 

(3)                               Mr. Hu Tianxiang (胡天翔), a PRC citizen (Mr. Hu); and

 

(4)                               E-House (China) Real Estate Asset Management Ltd., an exempted limited liability company organized under the laws of the Cayman Islands (the “Investor”).

 

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

 

RECITALS

 

A.                                    The Company is an exempted limited liability company established under the laws of the Cayman Islands;

 

B.                                    The Selling Shareholder desires to sell and transfer to the Investor certain equity interest of the Company held by it, and the Investor desires to acquire and purchase from the Selling Shareholder certain equity interest of the Company held by the Selling Shareholder, on the terms and conditions set forth in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.                                      DEFINITIONS

 

For purposes of this Agreement, the following terms shall have the following meanings:

 

“Affiliate” means, with respect to a person, any other person that, directly or indirectly, controls, is controlled by or is under common control with such person, and any shareholder, member or partner of such person.

 

“Agreement” has the meaning set forth in the preamble.

 

“Board of Directors” means the board of Directors of the Company.

 

 

“Circular 37” means the Notice on Relevant Issues Concerning Foreign Exchange Administration for Domestic Residents to Engage in Overseas Investment and Financing and Round Trip Investment via Special Purpose Companies issued by SAFE on July 4, 2014. and the implementation rules promulgated thereunder.

 

“Closing” has the meaning set forth in Section 3.1.

 

“Closing Date” has the meaning set forth in Section 3.1.

 

“Company” has the meaning set forth in the preamble.

 

“Confidential Information” has the meaning set forth in Section 10.14(a).

 

“Conversion Shares” means the ordinary shares of the Company issuable upon conversion of the Purchased Shares.

 

“Directors” means the directors, from time to time, of the Company.

 

“Disclosing Party” has the meaning set forth in Section 10.14(c).

 

“ESOP” means the employee stock option plan of the Company to be adopted by the Company, under which a total of 12,048,193 Ordinary Shares have been reserved for the purpose of motivating employees, officers and consultants of the Company.

 

“HKIAC” has the meaning set forth in Section 10.12(b).

 

“Indemnifiable Loss” means, with respect to any person, any action, claim, cost, damage, deficiency, diminution in value, disbursement, expense, liability, loss, obligation, penalty, settlement, suit, or Tax of any kind or nature, together with all interest, penalties, legal, accounting and other professional fees and expenses incurred in the investigation, collection, prosecution and defense of claims and amounts paid in settlement, that may be imposed on or otherwise incurred or suffered by such person.

 

“Indemnitor” has the meaning set forth in Section 9(a).

 

“Indemnitee” has the meaning set forth in Section 9(a).

 

“Investor” has the meaning set forth in the preamble.

 

“Lien” has the meaning set forth in Section 4.3(a).

 

“Ordinary Shares” means the ordinary shares of the Company, par value US$0.0005per share.

 

“Party/Parties” has the meaning set forth in the preamble.

 

“PRC” means the People’s Republic of China but, solely for the purposes of this Agreement and the other Transaction Documents, excluding the Hong Kong, Macau Special Administrative Region and the island of Taiwan.

 

2

 

“Preferred Share” means any of the Series A Preferred Shares and the Series B Preferred Shares.

 

“Purchased Price” has the meaning set forth in Section 2.1.

 

“Purchased Shares” has the meaning set forth in Section 2.1.

 

“Restated Articles” means the Second Amended and Restated Memorandum and Articles of Association of the Company adopted on May 22, 2014.

 

“Right of First Refusal and Co-sale Agreement” means the Right of First Refusal and Co-Sale Agreement entered into by and among the Company, the Investor and certain other parties thereto on May 22, 2014.

 

“RMB” means Renminbi, the lawful currency of the PRC.

 

“SAFE” means PRC State Administration for Foreign Exchange or any of its local counterparts.

 

“SAFE Rules and Regulations” means Circular 37 and any other applicable SAFE rules and regulations.

 

“Series A Shares” means the series A preferred shares, par value US$0.0005 per share, of the Company.

 

“Series B Shares” means the series B preferred shares, par value US$0.0005 per share, of the Company.

 

“Transactions” means, collectively, the transactions contemplated under Section 2.1.

 

“Transaction Agreements” means this Agreement, the exhibits and appendices attached to the foregoing and each of the agreements and other documents otherwise required in connection with the implementing the transactions contemplated by any of the foregoing.

 

“USD” or “US$” means the United States dollar, the lawful currency of the United States of America.

 

“Warrantors” has the meaning set forth in Section 4.

 

2.                                      AGREEMENT TO PURCHASE AND SELL SHARES

 

2.1                                Sale of Ordinary Shares.  Subject to the terms and conditions hereof and in consideration of the Purchase Price set forth below, the Selling Shareholder hereby agrees to sell to the Investor, and the Investor hereby agrees to purchase from the Selling Shareholder, on the Closing Date, 12,918,340 Ordinary Shares, par value of US$0.0005 per share each, of the Company (the “Purchased Shares”) for an aggregate purchase price of USD10,116,352 (the “Purchase Price”).  The Purchased Shares shall, at the Closing, be re-designated into 12,918,340 Series B Shares.

 

3

 

3.                                      CLOSING; DELIVERY

 

3.1.                          Closing.  The consummation of the sale and purchase of the Purchased Shares hereunder (the “Closing”, and such date of the Closing, the “Closing Date”) shall take place remotely via the exchange of documents and signatures as soon as practicable after all closing conditions (except for such conditions that will be satisfied at the Closing, but nonetheless subject to the satisfaction thereof at the Closing) specified in Section 7 and Section 8 hereof have been waived or satisfied, or at such other time and place as the Parties shall mutually agree in writing.

 

3.2.                            Delivery.  At the Closing, in addition to any item the delivery of which is made an express closing condition pursuant to Sections 7 and 8 hereof,

 

(a)                                the Company shall deliver to the Investor (i) the updated register of members of the Company, certified by the registered agent of the Company, reflecting the transfer to the Investor of the Purchased Shares (including the re-designated Series B Shares) being purchased by the Investor at the Closing, and (ii) a duly executed share certificate representing the aggregate number of the Series B Shares being held by the Investor at the Closing, including the Series B Shares that are re-designated from the Purchased Shares being purchased by the Investor at the Closing;

 

(b)                                the Investor shall deliver to the Selling Shareholder the Purchase Price by wire transfer of immediately available funds in USD to an account designated by the Company;

 

(c)                                 the Selling Shareholder shall deliver to the Company share certificate(s) representing all the Ordinary Shares of the Company held by the Selling Shareholder immediately prior to the Closing and the duly executed instrument of transfer in respect of the Ordinary Shares; and

 

(d)                                 the Company shall deliver to the Selling Shareholder a share certificate representing that number of Ordinary Shares that is equal to the number of Ordinary Shares held by the Selling Shareholder immediately prior to the Closing less the number of Purchased Shares.

 

4.                                      REPRESENTATIONS AND WARRANTIES OF THE WARRANTORS

 

Each of the Company, the Selling Shareholder and Mr. Hu (each a “Warrantor”, and collectively, the “Warrantors”), jointly and severally, hereby represent and warrant to the Investor, which identifies exceptions by specific section references and which shall be deemed to be representations and warranties of the Warrantors, as of the date hereof and the Closing Date hereunder, as follows:

 

4.1.                          Capitalization.

 

(a)                               Immediately prior to the Closing, the authorized share capital of the Company consists of the following:

 

(i)                                     Ordinary Shares.  A total of 155,020,080 ordinary shares, par value US$0.0005 per share, of the Company, with rights, privileges and preferences as stated in the Restated Articles (the “Ordinary Shares”), of which:

 

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(1)                               74,163,320 shares are issued and outstanding;

 

(2)                               38,755,020 shares are reserved for issuance upon conversion of the Series B Shares; and

 

(3)                               12,048,193 shares are reserved for issuance to officers, directors, employees, consultants or service providers of the Company under an employee stock option plan (the “ESOP”) to be adopted by the Board of Directors after the Closing.

 

(ii)                                Preferred Shares.  A total of 42,971,887 preferred shares, par value US$0.0005 per share, of the Company, with rights, privileges and preferences as stated in the Restated Articles (the “Preferred Shares”), of which:

 

(1)                               4,216,867 shares are designated as Series A Shares, all of which are issued and outstanding; and

 

(2)                               38,755,020 shares are designated as Series B Shares, all of which are issued and outstanding.

 

The capitalization tables set forth in Part 1 of Schedule 1 and Part 2 of Schedule 1 completely and accurately list the share capital of the Company and the holders thereof, as of (1) immediately prior to the Closing; and (2) immediately after the Closing, respectively.

 

(d)                                                    Right of First Refusal.  Apart from the right of first refusal set forth in the Right of First Refusal and Co-sale Agreement, the Purchased Shares are not subject to any preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of the Company or any other person) or any agreement that affects the voting or relates to the giving of written consents with respect to such shares.

 

4.2.                                             Due Authorization and Enforceability.  Each Warrantor has all requisite power and authority to execute and deliver the Transaction Agreements to which it is a party and to carry out and perform its obligations thereunder.  All action on the part of each Warrantor (and, as applicable, its officers, directors and shareholders) necessary for the authorization, execution and delivery of the Transaction Agreements to which it is a party, the performance of all obligations of each Warrantor thereunder, and the sale and transfer and delivery of the Purchased Shares, has been taken or will be taken prior to the Closing.  This Agreement has been duly executed and delivered by each Warrantor.  This Agreement and each of the Transaction Agreements are, or when executed and delivered by such Warrantor shall be, valid and legally binding obligations of such Warrantor, enforceable against such Warrantor in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.  The Transaction is not subject to any preemptive rights or rights of first refusal, or if any such preemptive rights or rights of first refusal exist, waiver of such rights has been obtained from the holders thereof.

 

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4.3.                            Title to the Purchased Shares.

 

(a)                                  The Selling Shareholder has legal and valid title to the Purchased Shares, free from any mortgage, pledge, claim, security interest, encumbrance, title defect, lien, charge or other restriction or limitation.  The Purchased Shares, when sold, re-designated and delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly sold, redesignated, fully paid and non-assessable, free and clear of any mortgage, pledge, claim, security interest, encumbrance, title defect, lien, charge or other restriction or limitation (each, a “Lien”) and will be free of restrictions on transfer (except for any restrictions on transfer set forth under applicable securities laws and regulations). Subject in part to the accuracy of the representations of the Investor in Section 5 of this Agreement, the Purchased Shares will be sold and transferred in compliance with all applicable securities laws.  The ordinary shares issuable upon conversion of the Purchased Shares (“Conversion Shares”) have been duly reserved for issuance, and upon issuance in accordance with the terms of the Restated Articles, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer set forth in applicable securities laws and liens or encumbrances created by or imposed by the Investor.  The Conversion Shares will be issued in compliance with all applicable securities laws.

 

(c)                                  All presently outstanding equity securities of the Company were duly and validly issued (or subscribed for) in compliance with all applicable laws, pre-emptive rights of any person, and applicable contracts, and are fully paid and non-assessable. All share capital of the Company is and as of the Closing shall be free of any and all Liens.  There are no (a) resolutions pending to increase the share capital of the Company or cause the liquidation, winding up, or dissolution of the Company, (b) dividends which have accrued or been declared but are unpaid by the Company or (c) outstanding or authorized equity appreciation, phantom equity, equity plans or similar rights with respect to the Company.

 

5.                                      REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

 

The Investor hereby represents and warrants to the Company and the Selling Shareholder as follows:

 

5.1.                            Authorization.  The Investor has all requisite power, authority and capacity to enter into the Transaction Agreements, and to perform its obligations under the Transaction Agreements.  This Agreement has been duly authorized, executed and delivered by the Investor. The Transaction Agreements, when executed and delivered by the Investor and subject to the execution and delivery by other parties thereto, will constitute valid and legally binding obligations of the Investor, subject, as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditors’ rights generally and to general equitable principles.

 

5.2.                            Accredited Investor.  To the extent applicable and necessary, the Investor represents that it is an “accredited investor” within the definition set forth in Rule 501(a) under Regulation D of the Securities Act, as presently in effect.

 

5.3.                            Purchase for Own Account.  The Purchased Shares will be acquired for the Investor’s own account or the account of one or more of any of the Investor’s Affiliates, not as a nominee or agent, and not with a view to or in connection with the sale or 

 

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distribution of any part thereof, other than pursuant to agreements or arrangements governing the acquisition, management and disposition of fund assets or interests in general fund assets with participants in the fund.

 

5.4.                            Restricted Securities.   The Investor understands that the Purchased Shares are characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company and the Selling Shareholder in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act, only in certain limited circumstances.  The Investor understands that the Purchased Shares are not registered or listed publicly and must be held indefinitely unless they are subsequently registered or listed publicly or an exemption from such registration or listing is available.

 

6.                                      COVENANTS

 

Each of the Warrantors jointly and severally covenants to the Investor as follows:

 

6.1                                 Compliance with SAFE Rules and Regulations.  As soon as practicable after the Closing and in any event within two (2) months after the Closing Date, Mr. Hu shall duly complete all necessary filings or registrations with the relevant local SAFE in connection with the consummation of the transactions as contemplated by this Agreement in compliance with the registration and any other requirements of the SAFE Rules and Regulations.

 

6.2                                 Other Actions.  At any time after the date hereof, the Warrantors shall, at the request of the Investor and so far as it lies within their respective control and power, execute or procure that there shall be executed all such documents and do all such acts and things as the Investor may reasonably require for the purpose of implementing or giving effect to the provisions of this Agreement.

 

7.                                      CONDITIONS TO THE INVESTOR’S OBLIGATIONS AT THE CLOSING

 

The obligation of the Investor to purchase the Purchased Shares at the Closing is subject to the fulfillment and to the satisfaction of the Investor on or prior to the Closing, unless otherwise waived by the Investor, of the following conditions:

 

7.1                               Representations and Warranties True and Correct.  The representations and warranties made by the Warrantors in Section 4 hereof shall be true and correct and complete when made, and shall be true and correct and complete as of the Closing Date with the same force and effect as if they had been made on and as of such date, subject to changes contemplated by this Agreement.

 

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

 

7.3                               Proceedings and Documents.  All corporate and other proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions to be passed, executed and/or delivered by any Warrantor shall 

 

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be reasonably satisfactory in substance and form to the Investor, and the Investor shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request.

 

7.4                               Approvals, Consents and Waivers.  The Company or the Selling Shareholder, as the case may be, shall have obtained any and all approvals, consents and waivers necessary for consummation of the Transaction as contemplated hereby, including, but not limited to, (i) all permits, authorizations, approvals, consents or permits of any governmental authority or regulatory body, and (ii) the waiver by the then existing shareholders of the Company of any anti-dilution rights, rights of first refusal, preemptive rights and all similar rights in connection with the Transaction; and (iii) the approval from the internal investment committee of the Investor.

 

8.                                      CONDITIONS TO SELLING SHAREHOLDER’S OBLIGATIONS AT THE CLOSING

 

The obligations of the Selling Shareholder under this Agreement at the Closing are subject to the fulfillment, to its satisfaction, or waiver by the Selling Shareholder, at or before the Closing, of the following conditions:

 

8.1                               Representations and Warranties True and Correct.  The representations and warranties of the Investor contained in Section 5 hereof shall be true and correct as of the Closing.

 

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

 

8.3                               Proceedings and Documents.  All corporate and other proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions shall have been passed and executed by the Investor.

 

9.                                      INDEMNITY

 

(a)                                  Each of Mr. Hu and the Selling Shareholder (each, an “Indemnitor”) hereby jointly and severally agrees to indemnify and hold harmless the Investor, and the Investor’s Affiliates, directors, officers, agents and assigns (each, an “Indemnitee”), from and against any and all Indemnifiable Losses suffered by such Indemnitee as a result of, or based upon or arising from:

 

(i) any breach, violation or non-performance of, or inaccuracy or misrepresentation in, any of the representations, warranties, covenants or agreements made by any Indemnitor in or pursuant to this Agreement or any of the other Transaction Agreements; or

 

(ii) any third-party claim raised by any person or entity due to the consummation of the Transaction; or

 

(b)                                 Without limiting the provisions of Sections 9(a), each of the Indemnitors hereby undertakes to pay to an Indemnitee, upon the written request of the Investor, an amount equivalent to any Indemnifiable Loss, whether arising prior to or after 

 

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the Closing, suffered or incurred by such Indemnitee as a result of or in connection with any failure by the Selling Shareholder to comply with the requirements under Circular 698 issued by the State Administration of Taxation of PRC on December 10, 2009, titled “Circular on Strengthening  the Administration of Enterprise Income Tax on Income Derived from the Transfer of Equity of Non-Tax-resident Enterprises”, effective retroactively as of January 1, 2008, or any successor rule or regulation under PRC law.

 

(c)                                   If any Indemnitee believes that it has a claim that may give rise to an obligation of any Warrantor pursuant to this Section 10, it shall give prompt notice thereof to the Warrantors stating specifically the basis on which such claim is being made, the material facts related thereto, and the amount of the claim asserted.

 

(d)                                  The rights contained in this Section 10 shall not be deemed to preclude or otherwise limit in any way the exercise of any other rights or pursuit of other remedies for the breach of this Agreement or with respect to any misrepresentation.  This Section 10 shall survive any termination of this Agreement.

 

10.                               MISCELLANEOUS

 

10.1.                     Governing Law.  This Agreement shall be governed by and construed exclusively in accordance with the laws of Hong Kong.

 

10.2.                     Survival.  The representations and warranties made herein shall survive any investigation made by any Party hereto and the Closing.

 

10.3.                     Successors and Assigns.  Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the Parties hereto whose rights or obligations hereunder are affected by such amendments.  This Agreement and the rights and obligations therein may not be assigned by the Investor without the written consent of the Seller and the Company provided that the Investor may assign its rights and obligations to one or more of its parent corporation, subsidiary, or Affiliate.  This Agreement and the rights and obligations therein may not be assigned by the Parties other than the Investor without the written consent of the Investor.

 

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

 

10.5.                     Notices.  Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand-delivered to the other party, upon delivery; (b) when sent by facsimile at the number set forth in Schedule 2 hereto, upon receipt of confirmation of error-free transmission; (c) seven (7) business days after deposit in the mail as air mail or certified mail, receipt requested, postage prepaid and 

 

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addressed to the other Parties as set forth in Schedule 2; or (d) three (3) business days after deposit with an overnight delivery service, postage prepaid, addressed to the Parties as set forth in Schedule 2 with next-business-day delivery guaranteed, provided that the sending Party receives a confirmation of delivery from the delivery service provider.

 

Each person communicating hereunder by facsimile shall promptly confirm by telephone with the person to whom such communication was addressed the receipt of each communication made by it by facsimile pursuant hereto but the absence of such confirmation shall not affect the validity of any such communication.  A Party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 10.5, by giving the other Parties written notice of the new address in the manner set forth above.

 

10.6.                     Amendments and Waivers.  Any term of this Agreement may be amended only with the written consent of the Company, the Selling Shareholder and the Investor.

 

10.7.                     Delays or Omissions.  No delay or omission to exercise any right, power or remedy accruing to any Party, upon any breach or default of any other Party under this Agreement, shall impair any such right, power or remedy of such Party, nor shall it be construed to be a waiver of any such breach or default, or of an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall it be construed to be any waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character on the part of any Party of any breach or default under this Agreement or any waiver on the part of any Party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Agreement or by law or otherwise afforded to any Party, shall be cumulative and not alternative.

 

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

 

10.9.                     Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

 

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

 

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

 

10.12.              Dispute Resolution.

 

(a)                                  Negotiation Between Parties.  The Parties agree to negotiate in good faith to resolve any dispute between them regarding this Agreement.  If the negotiations do not resolve the dispute to the reasonable satisfaction of all parties within thirty (30) days from the commencement of such negotiations, Section 10.12(b) shall apply.

 

(b)                                  Arbitration.  In the event the parties are unable to settle a dispute between them regarding this Agreement in accordance with subsection (a) above, such dispute shall be referred to and finally settled by arbitration at Hong Kong International Arbitration Centre (the “HKIAC”) in accordance with the Hong Kong International Arbitration Centre Administered Arbitration Rules (the “HKIAC Rules”) in force at the time of the initiation of the arbitration, which rules are deemed to be incorporated by reference into this subsection (b).  The arbitration tribunal shall consist of one arbitrator to be appointed according to the HKIAC Rules.  The language of the arbitration shall be English.

 

10.13                 Expenses.

 

The Company and the Selling Shareholder shall pay all of their own costs and expenses incurred in connection with the negotiation, execution, delivery and performance of this Agreement and other Transaction Agreements and the transactions contemplated hereby and thereby.

 

10.14                 Confidentiality and Non Disclosure.

 

(a)                                 The terms and conditions of this Agreement the other Transaction Agreements, any term sheet or memorandum of understanding entered into pursuant to the transactions contemplated hereby, all exhibits and schedules attached hereto and thereto, the transactions contemplated hereby and thereby, including their existence, and all information furnished by any Party hereto and by representatives of such Parties to any other Party hereof or any of the representatives of such Parties (collectively, the “Confidential Information”), shall be considered confidential information and shall not be disclosed by any Party hereto to any third party except in accordance with the provisions set forth below. The obligations of each party hereto under this Section 10.14 shall survive and continue to be binding upon such Party for a period of three (3) years after the termination of this Agreement.

 

(b)                                 Notwithstanding the foregoing, the Company and the Investor may disclose (i) the Confidential Information to its current or bona fide prospective investors, Affiliates of the Company and the Investor and their respective employees, bankers, lenders, accountants, legal counsels, business partners or representatives or advisors who need to know such information, in each case only where such persons or entities are informed of the confidential nature of the Confidential Information and are under appropriate nondisclosure obligations substantially similar to those set forth in this Section 10.14, (ii) such Confidential Information as is required to be disclosed pursuant to routine examination requests from Governmental Authorities with authority to regulate such Party’s operations, in each case as 

 

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such Party deems appropriate in its reasonable discretion, and (iii) the Confidential Information to any person to which disclosure is approved in writing by the other Parties hereto.  Any Party  hereto may also provide disclosure in order to comply with applicable laws, as set forth in Section 10.14(c) below.

 

(c)                                  Except as set forth in Section 10.14(b)(i) and (iii) above, in the event that any Party is requested or becomes legally compelled (including without limitation, pursuant to any applicable tax, securities, or other laws and regulations of any jurisdiction) to disclose the existence of this Agreement or any other Transaction Agreement or content of any of the financing terms hereunder, such party (the “Disclosing Party”) shall provide the other Parties hereto with prompt written notice of that fact and shall consult with the other Parties hereto regarding such disclosure. At the request of the other Parties, the Disclosing Party shall, to the extent reasonably possible and with the cooperation and reasonable efforts of the other Parties, seek a protective order, confidential treatment or other appropriate remedy. In any event, the Disclosing Party shall furnish only that portion of the information that is legally required and shall exercise reasonable efforts to obtain reliable assurance that confidential treatment will be accorded to such information.

 

(d)                                 Notwithstanding any other provision of this Section 10.14, the confidentiality obligations of the Parties shall not apply to:  (i) information which a restricted party learns from a third party which the receiving party reasonably believes to have the right to make the disclosure, provided the restricted party complies with any restrictions imposed by the third party; (ii) information which is rightfully in the restricted party’s possession prior to the time of disclosure by the protected party and not acquired by the restricted party under a confidentiality obligation; or (iii) information which enters the public domain without breach of confidentiality by the restricted party.

 

10.15                 Termination of this Agreement.

 

This Agreement may be terminated by each of the Selling Shareholder and the Investor on or after the later of (i) three (3) months after the date of execution of this Agreement, and (ii) another date mutually agreed upon by the Parties hereto by written notice to the other Parties, if the Closing has not occurred on or prior to such date, provided that (i) the Company’s termination right under this Section 10.15 shall be conditional upon the fact that the Warrantors have not materially breached their representations, warranties or covenants hereunder and the failure of the Closing is not due to the fault of any Warrantor; (ii) the Investor’s termination rights under this Section 10.15 shall be conditional upon the fact that the Investor has not materially breached its representations, warranties or covenants hereunder and the failure of the Closing is not due to the fault of the Investor. Upon termination of this Agreement under this Section 10.15, this Agreement shall forthwith become wholly void and of no effect and the Parties shall be released from all future obligations hereunder, except as otherwise expressly provided herein; provided that nothing herein shall relieve any Party from liability for any breach of this Agreement occurring prior to such termination.

 

10.16                 Effectiveness and Validity.

 

Upon execution of this Agreement by any of the signing Parties listed in the signing columns at the end of this Agreement, this Agreement shall become immediately 

 

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effective and binding among all those Parties which have duly executed, either sequentially or concurrently, copies of this Agreement.

 

— REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK -

 

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

 

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
Jupai Investment Group (Cayman)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Tianxiang Hu
    
	
 
    	
Name: Tianxiang Hu
    
	
 
    	
Title: Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SELLING SHAREHOLDER:
    
	
 
    	
 
    
	
 
    	
Jupai Holding Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tianxiang Hu
    
	
 
    	
Name: Tianxiang Hu
    
	
 
    	
Title: Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MR. HU:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Tianxiang Hu
    
	
 
    	
HU TIANXIANG (胡天翔)
    

 

 

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

 

 

	
 
    	
INVESTOR:
    
	
 
    	
 
    
	
 
    	
E-House (China) Real Estate Asset   Management Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Xin Zhou
    
	
 
    	
Name: Xin Zhou
    
	
 
    	
Title: Director

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