Document:

World of Tea Inc.: Exhibit 10.5 - Prepared by TNT Filings Inc.

  

Exhibit 10.5

 
Purchase Option Agreement

This purchase option agreement (“Agreement”) is entered into by the following parties on November 13, 2007:

 

“Company”

 

	
  Beijing BBMAO Network Technology Co., Ltd. 
  (北京比比猫网络技术有限公司)

	
  
  Address:

	
  
  Suite 418, No. 17, Xiaoying Road, Chaoyang District, Beijing, People’s Republic of China

	
  
  Represented by:

	
  Xiaozhi ZHANG (张小知)

	
  
  Telephone:

	 

 

“Option Holder”

 

	
  
  BWA (Shanghai) Co., Ltd. (亚宽管理咨询(上海)有限公司)

	
  
  Address:

	
  
  Suite 1201, Shanghai Times Square, No. 93, Middle Huai Hai Road, Luwan District, Shanghai, People’s Republic of China

	
  
  Represented by:

	 
	
  
  Telephone:

	 

 

“Shareholder A”

 

	
  Xiaozhi ZHANG (张小知)

	
  
  ID number:

	 
	
  
  Address:

	 
	
  
  Telephone:

	 

 

“Shareholder B”

 

	
  Xiaohong DONG (董晓虹)

	
  
  ID number:

	 
	
  
  Address:

	 
	
  
  Telephone:

	 

 

Shareholder A and Shareholder B are collectively referred to as “Shareholders”.  Company, Option Holder and Shareholders are collectively referred to as “Parties” and individually as “Party”.

 

 

	Purchase Option
    Agreement	
    1
	 

 

WHEREAS,

(1)

Shareholder A and Shareholder B hold 50% and 50% of the Company’s shares respectively;

(2)

Option Holder, a limited liability company legally organized and validly existing in China, provides the services of management consulting and technology consulting for Company, who has been an important companion of Company; and

(3)

The Parties intend to give the Option Holder the exclusive option to purchase all or part of the Company’s shares held by Shareholders or one Shareholder from time-to-time in accordance with Chinese laws.

 

Under the principle of sincere cooperation, equal and mutual benefit and common development, through friendly negotiations and pursuant to PRC laws and regulations, the Parties  agree as follows:

 

ARTICLE 1

AUTHORIZATION AND EXERTION OF PURCHASE OPTION

 

1.1

The Parties agree that, upon execution of this Agreement, the Option Holder owns the exclusive option and is entitled to purchase all or part of the Company’s  shares held by the Shareholders, or all or part of the Company’s  assets at any time in accordance with the provisions set forth herein.  Parties agree that once the option is authorized, by execution of this Agreement, the option shall be irrevocable during the life of this Agreement.

 

1.2

The purchase option shall be exercised on the condition that the shares or assets of Company held by the Option Holder directly or held by other qualified entity appointed by the Option Holder shall not violate applicable PRC laws and regulations.

 

1.3

To exercise the purchase option, the Option Holder shall inform the Company or Shareholders, of the Option Holder’s intent to exercise its purchase option by serving both the Company and Shareholders with a copy of the Notice of Option Exertion (“Notice of Option Exertion”, which is annexed hereto as Exhibit I).

 

1.4

Within thirty (30) days of receipt of the Notice of Option Exertion, the Company or Shareholder shall sign the share or asset transfer agreement or other necessary documents (collectively, “Transfer Documents”) with the Option Holder (or other qualified entity appointed by Option Holder), which shall conform with the Notice of Option Exertion.

 

1.5

In accordance with the governing laws and Option Holder’s decision to exercise the purchase option, the Company and Shareholders shall assist the Option Holder in its procurement of the necessary government approvals, permits, registration and other formalities unconditionally.

 

	 	
    2
	 

 

ARTICLE 2

PRICE OF PURCHASE OPTION EXERTION

 

2.1

Except for the evaluation demanded by governing laws, the price of the Company’s shares or assets shall be the higher one of the following two: (1) RMB 1 or (2) the lowest price allowed by law.  If the Option Holder chooses to purchase partial shares or assets, the price of the purchase option shall be adjusted in proportion to the price of the shares or assets of the whole Company.  The lump-sum of the purchase option shall be paid to Shareholders or other appointed person by the Option Holder when the Option Holder exercises the purchase option.

 

ARTICLE 3

REPRESENTATIONS AND WARRANTY

 

3.1

Each Party states and warrants to the other Parties as follows:

 

(1)

He/She/It owns all the necessary rights, abilities and authorizations to execute and fulfill all the obligations and responsibilities identified under this Agreement;

 

(2)

Signing and fulfilling this Agreement does not violate any important contract or agreement that binds any party and/or its assets.

 

3.2

The Company and Shareholders further state, individually and collectively, and warrant to the Option Holder the following:

 

(1)

On the date of this Agreement’s execution, the Shareholders legally own the Company’s  shares, and own the entire, effective disposal rights of such shares (excluding limitations under Chinese laws and regulations).  The Company’s  shares owned by Shareholders, have no mortgage, impawn, preemption or other rights and benefits of any third party, and there is no third party claim for compensation (except for that which has been disclosed to the Option Holder and confirmed by the Option Holder in writing.)

 

(2)

Except to fulfill the repayment obligations of the Shareholders under the Loan Agreement during the life of this Agreement, the Shareholders shall not transfer their shares of the Company to any third party unless agreed to in writing by the Option Holder.

 

(3)

During the life of this Agreement, the Company’s business shall conform to all applicable Chinese laws, regulations and administrative rules and provisions, and shall not take any actions that might have a negative effect on the Company’s business or assets due to a violation of applicable Chinese laws, regulations and administrative rules and provisions.

 

 

	 	
    3
	 

 

(4)

Until such time as the Option Holder (or qualified entity appointed by Option Holder) exercises the purchase option to acquire all the shares or assets of the Company, the Company shall not engage in the following:

 

(a)

Sell, transfer, pledge or through any other methods dispose of any asset, business or rights and benefits of legal or beneficial income, or permit selling other guarantee rights concerning same (except those activities that are generated by normal or daily business or those activities that have been disclosed to the Option Holder and consented to by the Option Holder in writing);

 

(b)

Transactions which materially affect assets, responsibility, operation, shares and other legal rights (except generated by normal or daily business or have been disclosed to the Option Holder and consented to by the Option Holder in writing);

 

(c)

Pay a dividend in any form to the shareholders (except for dividend payments resolved by unanimous consent by Shareholders according to Article 4.1 herein)

 

(5)

Until such time as the Option Holder (or qualified entity appointed by Option Holder) exercises the purchase option to acquire all the shares or assets of the Company, the Shareholders shall not engage in the following either individually or collectively:

 

(a)

Supply, modify or amend the articles of association of the Company in any form, and/or cause there to be any material affect on assets, responsibility, operation, shares and other legal rights (except to increase capital to meet legal requirements);

 

(b)

Prompt the Company to conclude the transaction which shall materially affect assets, responsibility, operation, shares and other legal rights (except generated by normal or daily business or have been disclosed to the Option Holder and consented to by the Option Holder in writing);

 

(c)

Prompt a shareholders meeting or the Board of Directors of Company to pass a resolution of dividend payment.

 

(6)

During the life of this Agreement, unless otherwise specified herein or agreed by the Option Holder in writing, the Shareholders, individually or collectively, shall prompt the Company as follows:

 

 

	 	
    4
	 

 

(a)

Maintain the Company’s  existence, operate the business, dispose affairs prudently and effectively, make best efforts to ensure that the Company continuously holds licenses, permits and approvals needed for its operation, and ensure that such licenses, permits and approvals will not be canceled;

 

(b)

Maintain the tangible assets of Company with good operation, except for normal wear and tear;

 

(c)

Refuse to compromise or relinquish rights related to pending litigation matters, except with the prior written consent of the Option Holder;

 

(d)

Make best efforts to maintain the the Company’s organizational structure and senior managers, continue to maintain relationships with clients to ensure that the reputation and business of Company will not be affected after completing the transaction of shares or assets hereof;

 

(e)

Shall not provide a loan or any form of debit or credit, except with the prior written consent of Option Holder;

 

(f)

Shall not merge with a third party and shall not purchase a third party’s assets or business or transfer the Company’s assets or other rights to a third party, except with the prior written consent of Option Holder;

 

(g)

Inform the Option Holder in writing immediately of any important negative changes to Company or any events, facts, conditions, changes or other situations which may lead to a violation of the terms and conditions identified herein;

 

(h)

Shall make best efforts to acquire all the necessary government approvals and other consent for completing the shares transfer, in the event that the Option Holder exercises the purchase option in accordance with the conditions of this Agreement.

 

ARTICLE 4

SPECIAL AGREEMENTS

 

The Parties  further agree:

 

4.1

The Shareholders promise they will sign the Power of Attorney which is annexed hereto as Exhibit II when they sign this Agreement, and authorize ____________________(ID Number:______________) and ________________(ID Number:______________) (collectively referred to as “Trustees”) as their authorized representative to execute and deliver all documents and to go through all necessary government registration formalities relating to the transfer of the equity or assets hereunder.  The premise of the authorization and trust is that the Trustees shall be Chinese citizens and consent to the authorization and trust set forth herein.  Upon the Option Holder informing the Company of dismissing and replacing the Trustee in writing, the Company shall withdraw the trust and authorization immediately, and shall appoint another Chinese citizen nominated by the Option Holder to exercise the rights hereinbefore as Trustees at the shareholders meeting of Company when Company received such notice. Without the prior written consent by Option Holder, Shareholders shall not withdraw the Trustees’ trust and authorization. Trustees shall fulfill the obligation prudentially and diligently according to the scope of authorization identified in this Agreement and avoid the Shareholders’ potential loss due to the authorization (except the loss due to Shareholders with any malice or big fault); otherwise the Trustees shall take related responsibility to Shareholders and Company.  Such promise shall be irrevocable during the life of this Agreement.

 

 

	 	
    5
	 

 

4.2

If permitted by applicable law, Shareholders shall extend the Company’s business period according to the Option Holder’s prospective period of operation and make the Company’s business period equal to the Option Holder’s business period.

 

ARTICLE 5

CONFIDENTIALLY

 

5.1

Notwithstanding whether this Agreement is validly existing, the parties herein shall safeguard as confidential all the following information (“Confidential Information”) (1) this Agreement’s signature, fulfillment and its content; (2) acknowledgement or receipt of Option Holder’s business secrets, exclusive information and customer information due to signing or fulfilling this Agreement; and (3) acknowledgement or receipt of the Company’s  business secrets, exclusive information and customer information due to being the shareholder of Company.  Each shareholder shall use Confidential Information for the purpose of fulfilling his/her obligation under this Agreement.  Without the Option Holder’s written consent, each shareholder of Company shall not disclose Confidential Information to third parties.  Such disclose is a material breach of this Agreement.

 

5.2

After this Agreement terminates, upon request of the Option Holder, each Shareholder shall return, destroy or otherwise dispose of all documents, information or software which contain Confidential Information and shall cease using Confidential Information.  Failure to do so constitutes a material breach of this Agreement.

 

5.3

Notwithstanding any other contrary terms and conditions herein stipulated, Article 5 shall not be affected on breaking off, terminating or failing to enforce this Agreement.

 

 

	 	
    6
	 

 

ARTICLE 6

LIABILITIES FOR BREACH

 

6.1

If any party violates any provisions of this Agreement or fails to fulfill any obligation contained herein (“Breaching Party”), such violation shall be deemed a breach of this Agreement (“Breach”).  The non-breaching party or parties (“Non-breaching Party”) shall inform the Breaching Party that it must remedy or take effective action to cure its breach during a period of time designated determined by the Non-breaching Party.  If the Breaching Party fails to remedy or take effective action within the time designated by the Non-breaching Party, the breaching party shall be penalized as follows:

 

6.1.1

Pay RMB 1,000,000 to the Non-breaching Party, and

 

6.1.2

Compensate the Non-breaching Party for any and all losses caused by the Breaching Party’s violation.

 

ARTICLE 7

APPLICABLE LAWS AND SETTLEMENT OF DISPUTES

 

7.1

This Agreement shall be governed and construed by the laws of China.

7.2

In the event of any dispute arising from, or in connection with this Agreement, the Parties will first attempt to resolve the dispute through friendly consultations.  In the event that satisfactory resolution is not reached within thirty (30) days after the occurrence of such disputes, the dispute will be submitted to resolution by arbitration by the China International Economic and Trade Arbitration Commission (Commission”) in Beijing, in accordance with the then-effective procedural rules of the Commission.  The arbitration shall be conducted in Chinese.  The arbitral award will be final and binding upon all Parties hereto.  The arbitration fee shall be born by the losing Party.  All the other terms than the disputing portion of this Agreement shall remain effective.

 

 

	 	
    7
	 

 

ARTICLE 8

LIFE OF AGREEMENT

 

8.1

This Agreement shall become effective on the date which is executed by the Parties and shall terminate on the date the Option Holder exercises its purchase option and acquires all the shares or assets of the Company pursuant to the terms of this Agreement.

 

8.2

Notwithstanding the provisions set forth hereinbefore, the Option Holder may rescind this Agreement by informing the other parties in writing thirty (30) days in advance of its intent to rescind this Agreement.

 

ARTICLE 9

MODIFICATION OF THIS AGREEMENT

 

9.1

Any amendment or supplement to this Agreement shall be in writing, and shall become effective upon execution by all parties.

 

ARTICLE 10

COUNTERPART

 

10.1

This Agreement is written in Chinese and English and in five counterparts, with each Party holding one counterpart of each version.  In the case of conflicts between the Chinese and English versions, the English version shall prevail.

 

ARTICLE 11

MISCELLANEOUS

 

11.1

Shareholders shall be held jointly and severally liable for the fulfillment of their duties, obligations, commitments and responsibilities under this Agreement.

 

11.3

This Agreement and its exhibits constitute the entire agreement with respect to the transaction identified in this Agreement, which shall supersede any and all oral or written correspondence, consent, memoranda or other discussion concerning this Agreement or the transaction referenced herein.

 

11.4

The headings contained in this Agreement are inserted for convenience only and will not affect the meaning or interpretation of this Agreement or any provision hereof.

 

11.5

Each part of this Agreement is intended to be severable.  If any term, covenant, condition or provision hereof is unlawful, invalid, or unenforceable for any reason whatsoever, then all such remaining parts hereof will be valid and enforceable and have full force and effect as if the invalid or unenforceable part had not been included.

 

 

	 	
    8
	 

 

11.6

When executing this Agreement, Shareholders shall sign a power of attorney at the same time (“Power of Attorney”, a copy of which is annexed hereto as Exhibit III), to irrevocably authorize a Chinese law firm appointed by the Option Holder to represent Shareholders in the execution of this Agreement.  The Power of Attorney shall be kept by the Option Holder.  In addition, the Option Holder may require Shareholders to sign several counterparts of such Power of Attorney at any time.

 

[The remainder of this page is intentionally left blank.]

 

 

	 	
    9
	 

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties as of the date first set forth above.

 

	
  
  “Option Holder”

	
  
  “Company”

	
  
  BWA (Shanghai) Co., Ltd. (亚宽管理咨询(上海)有限公司)

	
  Beijing BBMAO Network Technology Co., Ltd. 
  (北京比比猫网络技术有限公司)

	
  
  

By:__________________________

	
  
  

By:__________________________

	
  
  

Title:__________________________

	
  
  

Title:__________________________

	 	 
	
  
  “Shareholder A”

	
  
  “Shareholder B”

	
  Xiaozhi ZHANG (张小知)

	
  Xiaohong DONG (董晓虹)

	
  
  

By: /s/ Xiaoxhi Zhang_________

	
  
  

By:/s/ Xiaohong Dong_____

	 	 

 

	 	
    10
	 

 

Exhibit I

 

Notice of Purchase Option Exertion

 

To: Shareholders of Beijing BBMAO Network Technology Co., Ltd. / Beijing BBMAO Network Technology Co., Ltd.

 

Whereas, the “Purchase Option Agreement”, entered into by you and our Company on November 13, 2007, sets forth that, on the basis of Chinese laws and regulations and in accordance with the demand of our Company, sell Beijing BBMAO Network Technology Co., Ltd.’s shares / assets to our Company or other company / individual appointed by our Company.

 

Therefore, our Company  informs you as follows:

 

Our company  demands to exercise the purchase option under the “Purchase Option Agreement” at the price of RMB [_________] and purchase [the Company’s  name]’s shares of its __% Registered Capital / the following listed assets (a copy of which is annexed hereto) (collectively referred to as “Prospective transfer shares / Prospective transfer assets”) by our Company  / ________ appointed by our Company.  Please sell all Prospective transfer shares / Prospective transfer assets to our Company / ________ appointed by our Company in accordance with the terms of the “Purchase Option Agreement” upon receipt of this notice.

 

	
  
  BWA (Shanghai) Co., Ltd. (亚宽管理咨询(上海)有限公司)

	
  
  

By:__________________________

	
  
  

Title:__________________________

 

	 	
    11
	 

 

Exhibit II

 

Power of Attorney

I, the undersigned, __________________ (Chinese ID Card Number: ___________________), hereby irrevocably authorize ___________________, as my representative, to execute and deliver all documents and to go through all necessary government registration formalities relating to the transfer of the equity or assets of ___________________ under the Purchase Option Agreement entered into as of _______________ between ________________ or any entity or person designated by _________________ and me.  This Power of Attorney shall not be terminated due to my abscondence, death or lost of civil capacity.

By: _________________

Date: ___ ___, _____

 

 

	 	
    12
	 

 

Exhibit III

 

 

 

 

 

 

	 	
    13World of Tea Inc.: Exhibit 10.6 - Prepared by TNT Filings Inc.

  

Exhibit 10.6

 
Equity Pledge Agreement

This Equity Pledge Agreement (“Agreement”) is entered into as of November 13, 2007 by and among:

 

“Pledgor A”

 

	
  Xiaozhi ZHANG (张小知)

	
  
  ID Card Number:

	 
	
  
  Address:

	 
	
  
  Telephone:

	 

 

“Pledgor B”

 

	
  Xiaohong DONG (董晓虹)

	
  
  ID Card Number:

	 
	
  
  Address:

	 
	
  
  Telephone:

	 

 

“Company”

 

	
  Beijing BBMAO Network Technology Co., Ltd. 
  (北京比比猫网络技术有限公司)

	
  
  Address:

	
  
  Suite 418, No. 17, Xiaoying Road, Chaoyang District, Beijing, People’s Republic of China

	
  
  Represented By:

	
  Xiaozhi ZHANG (张小知)

	
  
  Telephone:

	 

 

“Pledgee”

 

	
  
  BWA (Shanghai) Co., Ltd. (亚宽管理咨询(上海)有限公司)

	
  
  Address:

	
  
  Suite 1201, Shanghai Times Square, No. 93, Middle Huai Hai Road, Luwan District, Shanghai, People’s Republic of China

	
  
  Represented By:

	 
	
  
  Telephone:

	 

 

Pledgor A and Pledgor B are collectively referred to as “Pledgors”.

 

 

WHEREAS,

 

(1)

Pledgors are the registered shareholders of the Company.  Pledgors legally hold all shares of the Company (“Company Shares”) and will hold all company shares on the date the parties execute this Agreement.  Each Pledgor’s contribution of the Company’s Registered Capital and the Share Holding Proportion are identified in Exhibit I.

 

(2)

Pursuant to that certain Exclusive Management Consulting Services Agreement between the Pledgee, the Company and the Pledgors dated as of November 23, 2007, that certain Exclusive Technology Consulting Agreement between the Pledgee and the Company dated as of November 13, 2007, and that certain Purchase Option Agreement between the Pledgee, the Company and the Pledgors dated as of November 13, 2007 (collectively, the “Business Cooperation Agreements”), the Pledgors have guaranteed the performance by themselves, and by the Company of its obligations under the Business Cooperation Agreements, as that term is defined therein, and have agreed to pledge all of the Company shares they own (the “Pledged Equity”) to secure that guarantee.

 

Through the friendly negotiation, the parties hereby agree:

 

ARTICLE 1

 

EQUITY PLEDGE

 

1.1

Pledgee will own priority of payment of the interest from the Pledged Equity converted into money, or the money from Pledged Equity’s auction or sale (“Pledge Right”).  The effectiveness of the Pledge Right will extend to any bonus arising from the Pledged Equity.

 

1.2

Pledgors will identify the agreement concerning the Pledged Equity in Company’s shareholders’ prospectus on the day of execution and deliver the share contribution certificate of the Company to the Pledgee within three (3) days from the date of execution.  The bonus Pledged Equity will be deposited into a bank account appointed and supervised by Pledgee.

 

1.3

The scope of the pledge guarantee hereby includes any payment under the Business Cooperation Agreements, any and all associated penal sum(s) and other expenses incurred in connection with the pledge guarantee as well as the expense of realizing the Pledgee's rights,.

 

1.4

Pledgors will not hold Pledgee responsible for any decrease in value of the Pledged Equity during the period this Agreement is in effect.

 

1.5

If the Pledgors engage in activity to intentionally reduce the value of the Pledged Equity, Pledgee may auction or sell off the Pledged Equity, and Pledgors agree to use the money from the auction or sale of the Pledged Equity to pay off the debts guaranteed by the Pledged Equity in advance.

 

1.6

Pledgors may contribute additional capital into Company only with the prior written consent of Pledgee.  This increased capital contribution regarded as additional Pledged Equity.

 

1.7

The period of Pledged Equity under this Agreement will commence on the date the Pledged Equity is registered in Company’s shareholders prospectus, and ends on the date when the Pledgors and the Company satisfies their obligations under the Business Cooperation Agreements.

 

2

 

 

ARTICLE 2

 

WARRANTY AND COMMITMENT OF PLEDGOR

 

Pledgors hereby warrant and represent respectively and collectively to Pledgee as follows:

 

2.1

Pledgors have read this entire Agreement and understands the content contained herein.

 

2.2

All expressions of Pledgors’ intent contained in this Agreement are true.

 

2.3

Pledgors’ execution and fulfillment of this Agreement is voluntary.

 

2.4

Pledgors are the legal owner of the Pledged Equity and warrants that there is no current ownership dispute of Pledged Equity.  Pledgors will be entitled to dispose of the Pledged Equity and any part of such equity.

 

2.5

With the exception of the pledge rights identified in this Agreement, there are no other outstanding pledge rights and benefits or third party’s pledge rights and benefits on the Pledged Equity identified in this Agreement.

 

2.6

All documents, information and reports provided by Pledgors to Pledgee were true, complete and effective at the time of their production and are true, complete and effective as of the date of execution of this Agreement.

 

2.7

Without the prior written agreement of Pledgee, Pledgors will not transfer the Pledged Equity, make any other agreement or pledge concerning the Pledged Equity or take any action that will dispose or negatively influence the Pledged Equity or Right.

 

2.8

Pledgors will immediately inform Pledgee in writing of any possible event or act which may affect the Pledge Right.

 

2.9

Pledgors will take every necessary measure and sign every necessary document to ensure the Pledge Right can be exercised and realized.

 

ARTICLE 3

 

WARRANTY AND COMMITMENT OF COMPANY

 

3.1

Company hereby agrees that it will take joint responsibility with Pledgors’ for the warranties and representations made by Pledgors to Pledgee in Article 2.

 

3.2

Company promises that it will not pass any resolutions concerning the Pledge Right which may have an affect on the exertion and realization of the Pledge Rights under this Agreement.

 

ARTICLE 4

 

LIFE AND TRANSFER OF AGREEMENT

 

4.1

This Agreement will be effective on the execution date of this Agreement, and will end on the date Pledgors fulfill the obligations of paying off the loan under the Loan Agreement.

 

4.2

This Agreement is binding on all legal heirs and/or successors of the parties hereby.

 

3

 

 

 

4.3

This Agreement, nor any of the duties and obligations identified herein, can be transferred to a third party, except by Pledgee’s prior written consent.

 

ARTICLE 5

 

FORCE MAJEURE

 

5.1

“Force Majeure” under this Agreement is identified as war, fire acts of god, such as an earthquake or flood, as well as government order, government action, or related laws and regulations that are unforeseeable, irresistible and/or unavoidable events (“Force Majeure event”).

 

5.2

Any Party who fails to perform or fails all or any partial obligations under this Agreement (“Breaching Party”) due to a Force Majeure will not be held responsible for the breach if the Breaching Party has taken every effort to fulfill its other obligations under this Agreement.  Once the Force Majeure event no longer prevents the Breaching Party from fulfilling its obligations under this Agreement, the Breaching Party agrees to recommence performance of its obligations. If the Force Majeure event has made fulfillment of this Agreement impossible, the Parties will make best efforts to fulfill the purpose of this Agreement.

 

ARTICLE 6

 

NOTICES

 

6.1

Any notice, request, demand or other communication required by this Agreement or made according to this Agreement will be delivered to the relevant Party in writing.

 

6.2

Notices given by personal delivery or mail will be deemed effective on the date of receipt.  Notices given by facsimile transmission or email will be deemed effective on the date of transmission or, if the transmission date is not a working day or the transmission time is after regular business hours (defined as 9:00-18:00), then the effective date will be the first (1st) business day following the date of transmission.

 

ARTICLE 7

 

LIABILITIES FOR BREACH OF CONTRACT

 

7.1

If any Party to this Agreement fails in any of its representations, warranties or covenants under this Agreement, or if fails to perform any of its obligations under this Agreement, such failure will constitute a breach under this Agreement (“Breach”).

 

7.2

The Party that does not breach this Agreement (“Non-breaching Party”) will have the right to require the Breaching Party to rectify or take remedial actions within an agreed period.  If the Breaching Party fails to rectify its breaching activities within the agreed period, the Non-Breaching Party has the right, at its own discretion, to choose one of the following remedies: (1) terminate this Agreement and require the Breaching party to compensate all the losses incurred to the other Party due to its Breach; or (2) require enforcement of the obligations of the Breaching Party under this Agreement and require compensation for all losses incurred to the other party due to the Breach.

 

4

 

 

ARTICLE 8

 

APPLICABLE LAWS AND SETTLEMENT OF DISPUTES

 

8.1

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

 

8.2

In the event of a dispute arising from, or in connection with, this Agreement, the Parties will first attempt to resolve the dispute through friendly consultations.  In the event that satisfactory resolution is not reached within thirty (30) days after the occurrence of such dispute, the parties will submit the dispute for resolution by arbitration to the China International Economic and Trade Arbitration Commission (“Commission”) in Beijing, in accordance with the then-effective procedural rules of the Commission.  The arbitration will be conducted in Chinese.  The arbitral award will be final and binding upon all Parties.  The arbitration fee will be born by the losing Party.  All other terms in this Agreement, other than the disputed portion of this Agreement, will remain effective.

 

ARTICLE 9

 

MISCELLANEOUS

 

9.1

This Agreement is written in Chinese and English and has five (5) counterparts, with each Party holding one (1) counterpart of each version.  In the case of conflicts between the Chinese and English versions, the English version shall prevail.

 

9.2

The headings contained in this Agreement are inserted for convenience only and should not be interpreted as having any affect on the meaning or interpretation of this Agreement or any provision hereof.

 

9.3

This Agreement will take effect upon execution and will be binding on the Parties.

 

9.4

Each part of this Agreement is intended to be severable.  If any term, covenant, condition or provision hereof is unlawful, invalid or unenforceable for any reason whatsoever, then all such remaining parts hereof will be valid and enforceable and have full force and effect as if the invalid or unenforceable part had not been included in the Agreement.

 

9.5

This Agreement may not be amended, altered or modified except by a subsequent written document signed by all Parties.

 

[The remainder of this page is intentionally left blank.]

5

 

 

IN WITNESS WHEREOF, this Equity Pledge Agreement has been executed by the Parties on the date first above written.

 

	
  
  “Pledgee”

	
  
  “Company”

	
  
  BWA (Shanghai) Co., Ltd. (亚宽管理咨询(上海)有限公司)

	
  Beijing BBMAO Network Technology Co., Ltd. 
  (北京比比猫网络技术有限公司)

	
  
  

By: __________________________

	
  
  

By: __________________________

	
  
  

	
  
  

Its: __________________________

	 	 
	
  
  “Pledgor A”

	
  
  “Pledgor B”

	
  Xiaozhi ZHANG (张小知)

	
  Xiaohong DONG (董晓虹)

	
  
  

By:  /s/Xiaozhi Zhang

	
  
  

By:  Xiaohong Dong

	 	 

6

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