Document:

qtt-ex429_162.htm

 

Exhibit 4.29

 

Exclusive Technical and Consulting Service Agreement

 

THIS Exclusive Technical and Consulting Service Agreement (this “Agreement”) is made on September 29, 2019 by the following two parties in Shanghai, the People’s Republic of China (“PRC”):

 

	
1.
	
Shanghai Quyun Internet Technology Co., Ltd., a limited liability company established and validly existing under PRC law with its registered address at [REDACTED]  (“Party A”); and 

 

	
2.
	
Anhui Zhangduan Internet Technology Co., Ltd., a limited liability company established and validly existing under PRC law with its registered address at [REDACTED]  (“Party B”).

 

Party A and Party B are hereinafter referred to individually as “a Party” and collectively as “Parties”.

 

Whereas: Party A is a wholly foreign owned company established in the Republic of China (“PRC”), with the necessary and appropriate resources to provide technical and consulting services.

 

Whereas: Party B is a domestic company established in the PRC, with a business scope of providing services such as information technology, computer science, technical services, technology research, technology transfer, technical consulting, design, make, act as agent for advertisement, making plans for cultural and art exchange, enterprise image, marketing strategy, and so on (the activities conducted by Party B currently or from time to time during the term of this Agreement, collectively “Main Business”)

 

Whereas: Party B wishes to engage Party A to provide Party B with certain technical support and consulting services.

 

By friendly negotiation, the Parties agree as follows:

 

	
1.
	
Service Provision

 

	
 
	
1.1
	
Pursuant to the terms and conditions of this Agreement, during the term of this Agreement, Party B hereby appoints Party A as Party B’s exclusive service provider to provide Party B with comprehensive technical support, business support and related consulting services, which shall include services as determined necessary by Party A from time to time within the approved business scope of Party B, including but not limited to technical services, business consultations, assets equipment leasing, market consultancy, system integration, product research and system maintenance. 

 

	
 
	
1.2
	
Party B agrees to accept the consultations and services provided by Party A. Party B further agrees that during the term of this Agreement, in terms of the services or other matters stipulated in this Agreement, it shall 

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neither, directly or indirectly, accept any consultation and/or service that is the same as or similar to which under this Agreement provided by any third party, nor establish any similar cooperative relationship with any third party regarding the matters stated in this Agreement without Party A’s prior written consent. The Parties agree that Party A may appoint any other party (who may be designated to enter into certain agreements with Party B as described in Article 1.3), to provide Party B with the services and/or supports described under this Agreement.

 

1.3Services Delivery

 

	
 
	
1.3.1
	
Party A and Party B agree that during the term of this Agreement, Party B may further enter into technical service agreement and consulting service agreement with Party A or other parties designated by Party A, as appropriate, in which shall describe the specific contents, manner, personnel and fees for each technical service and consulting service.

 

	
 
	
1.3.2
	
For better performance of this Agreement, the Parties agree that within the term of this Agreement, Party B will, as appropriate, based on the needs of business development, enter into Equipment/Asset Leasing Agreement with Party A or its designated party pursuant to which Party A or its designated party shall provide related equipment and assets to Party B.

 

	
 
	
1.3.3
	
Party B hereby grants to Party A an irrevocable and exclusive right to purchase, at Party A’s option and in compliance with the laws and regulations of PRC, all or part of Party B’s assets and business, at the lowest price as permitted by the PRC law. The Parties will enter into a separate agreement with respect to the terms and conditions of such transfer.

 

	
 
	
1.3.4
	
Party A has the right to assign part of the services to be performed under this Agreement to a third party.

 

	
2.
	
Service Fees and Payment

 

The Parties agree that in consideration of the all the services provided by Party A to Party B under this Agreement, Party A shall provide bills to Party B on the basis of the price determined by Party A as well as the workload of services provided to Party B. Party B shall pay relevant service fees (“Service Fees”) to Party A in accordance with the date and amount specified in the bills. Party A may unilaterally make other arrangements with respect to the payment of Service Fees at any time. If Party A adjusts the amount of Service Fees and informs Party B by prior written notice for such adjusted Service Fees, Party B shall pay the Service Fees at the adjusted amount. Service Fees shall be settled monthly on the basis of the actual services provided by Party A to Party B; Party B shall, within 30 days from the last day of each month, (a) provide Party A with the management statement, operating statistics and other financial information for the current month, including the income of Party B during the 

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month; (b) pay the monthly Service Fees to Party A (“Monthly Service Fee”). Party B shall, within 90 days from the end of every financial year, (a) provide Party A with the audited financial statement of the current financial year, which shall be audited and certified by the independent chartered accountant approved by Party A; (b) If according to the audited financial statement, the total amount of the payment by Party B to Party A have any deficiency within the financial year, Party B shall pay Party A the balance.

 

	
3.
	
Intellectual Property and Confidentiality

 

	
 
	
3.1
	
To the extent permitted under the PRC law, Party A shall have the exclusive rights and interests in all rights, ownership, interests and intellectual properties arising out of or created during the performance of this Agreement, which shall include, but not limited to, copyrights, patents, patent applications, software, technology secrets, trade secrets and other rights and interests. Party B shall sign all necessary documents, take all appropriate actions, submit all the documents and/or applications, provide all proper assistances and take all other actions solely determined by Party A as necessary to give all the ownership, rights and interests of such intellectual property to Party A, and/or perfect the protection of Party A’s intellectual property rights.

 

	
 
	
3.2
	
Party B agrees to indemnify Party A for any and all economic losses that Party A suffers as a result of Party B’s infringement of the intellectual property right of any third party (including copyright, trademark, patent and know-how).

 

	
 
	
3.3
	
The Parties acknowledge and confirm that any oral or written information exchanged between the Parties related to this Agreement, the content of this Agreement, and for preparing or performing this Agreement is confidential information. Each party shall maintain the confidentiality of the information and without the written consent of the other party, it shall not disclose any confidential information to any third parties, excluding the following: (a) any information is or will be acknowledged by the public (provided that it is not the result of a disclosure to the public without authorization made by a party who receives the confidential information ); (b) any information required to disclose under the applicable laws and regulations, stock trading rules, or orders of government departments or courts; or (c) information required to be disclosed by any Party to its shareholders, investors, legal or financial counsels regarding the transaction stated in this Agreement, and such shareholders, legal or financial counsels shall also be required to comply with the confidentiality duties similar to the duties contained under this clause. Any disclosure by staff or agencies hired by a Party should be deemed as a disclosure by such party and such party shall be liable for breach of this Agreement. This article shall survive regardless of the termination of this Agreement for any reason.

 

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3.4
	
Both Parties agree that this article shall survive and remain in full force and effect regardless of any modification, rescission or termination of this Agreement.

 

4.Representations and Warranties

 

	
 
	
4.1
	
Party A hereby represents and warrants as follows:

 

	
 
	
4.1.1
	
Party A is an exclusively foreign-owned enterprise legally registered and validly existing in accordance with PRC laws.

 

	
 
	
4.1.2
	
Party A has taken necessary corporate actions, achieved necessary authorizations, and obtained all consents and approvals by third parties and governmental authorities (if needed) for the execution and performance of this Agreement. The execution and performance of this Agreement by Party A does not violate any specific provision of laws or regulations.

 

	
 
	
4.1.3
	
This Agreement constitutes legal, valid and binding obligations of Party A, enforceable against it pursuant hereto.

 

	
 
	
4.2
	
Party B hereby represents and warrants as follows:

 

	
 
	
4.2.1
	
Party B is an enterprise legally registered and validly existing in accordance with PRC laws. Party B has obtained the permits and licenses issued by the governmental authorities required for engaging in main business.

 

	
 
	
4.2.2
	
Party B has taken necessary corporate actions, achieved necessary authorizations, and obtained all consents and approvals by third parties and governmental authorities (if needed) for the execution and performance of this Agreement. The execution and performance of this Agreement by Party B does not violate any specific provision of laws or regulations.

 

	
 
	
4.2.3
	
This Agreement constitutes legal, valid and binding obligations of Party B, enforceable against it pursuant hereto.

 

 

5.Effectiveness and Term of the Agreement

 

	
 
	
5.1
	
This Agreement is executed and taken effect on the date written first above. Unless earlier terminated in accordance with the terms of this Agreement or determined by Party B, this Agreement shall be effective indefinitely. 

 

	
 
	
5.2
	
In case that either Party’s business period expires, such Party shall, in a timely manner, to extend its business period to the extent such that this Agreement could be in effect and carried out on an ongoing basis. If either party’s application to extend its business term is declined, this 

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Agreement shall be void and null when the business term of such Party expires. 

 

	
 
	
5.3
	
The rights and obligations of both Parties under sections 3,6,7,9 and this section 5.3 shall survive after the termination of this Agreement .

 

6.Applicable Law and Dispute Resolution

 

	
 
	
6.1
	
The execution, effectiveness, interpretation, implementation, amendment and termination of this Agreement and the resolution of disputes shall be governed by PRC law.

 

	
 
	
6.2
	
Any dispute arising from interpretation and implementation of this Agreement shall be firstly solved by both Parties through friendly negotiation. If the dispute cannot be resolved within 30 days after the written notice sent from one party to the other for negotiation and resolution, any party may submit the relevant dispute to China International Economic and Trade Arbitration Commission for arbitration in accordance with the arbitration rules then effective. The arbitration shall be conducted in Shanghai and the language used is Chinese. The award of the arbitral tribunal shall be final and binding on both Parties.

 

	
 
	
6.3
	
When any dispute arising from interpretation and implementation of this Agreement occurs and when any dispute is under arbitration, except for the matters under dispute, both Parties shall continue to exercise their other rights under this Agreement and perform their other obligations under this Agreement.

 

7.Indemnification

 

	
 
	
7.1
	
Party A has the right to terminate this Agreement and/or require Party B to fully indemnify Party A if Party B substantially breach any sections hereof; this section 7.1 shall not preclude any other rights of Party A hereof.

 

	
 
	
7.2
	
Unless specifically provided for by applicable laws, Party A has no right, under any circumstances, to terminate or cancel this Agreement.

 

	
 
	
7.3
	
Party B shall indemnify in full and hold harmless of Party A for any loss, damage, liability or fee arising from the lawsuits, requests or other demands against Party A arising from the consulting and service provided to Party B according to this Agreement, unless such losses, damages, liabilities or fees are resulting from gross negligence or willful misconduct of Party A. 

 

8. Force Majeure

 

	
 
	
8.1
	
Neither Party is responsible for any failure to perform its obligation under this Agreement, if it is prevented or delayed in performing those 

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obligations by an event or circumstance which is beyond the control, unforeseeable, and unavoidable by such Party including, but not limited to, earthquake, typhoon, flood, fire, epidemic, war, strike (“Force Majeure”).

 

	
 
	
8.2
	
Where there is an event of force majeure, the Party prevented from or delayed in performing its obligations under this Agreement shall immediately notify the other Party of such event, and within 15 days thereafter provide the other Party with full particulars of the event of force majeure, and the reasons for the event of force majeure preventing that Party from, partially or fully, or delaying that Party in performing its obligations under this Agreement.

 

	
 
	
8.3
	
Failure to notify the other Party and to provide the particulars and reasons will subject that Party to liabilities for not fully performing its obligations under this Agreement. The Party claiming an event of force majeure shall use its reasonable efforts to mitigate the effect of the event of force majeure, and upon the termination of such event of force majeure, immediately fulfil its obligation hereunder. Failure to perform its obligations hereunder after the termination of an event of force majeure will subject such Party to liabilities.

 

9.Notice

 

	
 
	
9.1
	
All notices and other communications required or sent under this Agreement shall be delivered personally, registered post, postage paid or business express service or fax to the Party’s following address. Each notice shall also be delivered by email. The dates on which the notices shall be deemed to have been effectively delivered shall be determined as follows:

 

	
 
	
9.1.1
	
For notices delivered by personal delivery, express service or registered post, postage paid, the effectively delivered date shall be deemed as the date of delivery or refusal at the address specified for notices.

 

	
 
	
9.1.2
	
For the notices delivered by fax, the effectively delivered date shall be deemed as the date of delivered successfully (as evidenced by an automatically generated confirmation of transmission). 

 

	
 
	
9.2
	
For the purpose of notice, the addresses of the Parties are as follows:

 

Party A  Shanghai Quyun Internet Technology Co., Ltd.

Address:  [REDACTED]

Recipient:  [REDACTED]

Mobile:    [REDACTED]

 

Party B:  Anhui Zhangduan Internet Technology Co., Ltd.

Address:  [REDACTED]

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Recipient:  [REDACTED]

Mobile:    [REDACTED]

 

	
 
	
9.3
	
Any Party may at any time change its address for notices by a notice delivered to the other Party in accordance with the terms hereof.

 

10.Assignment

 

	
 
	
10.1
	
Without Party A’s prior written consent, Party B shall not assign its rights and obligations to any third party.

 

	
 
	
10.2
	
Party B hereby agrees that Party A is entitled to assign its rights and obligations under this Agreement to any third party when necessary without prior notice to Party B or consent from Party B.

 

11.Severability

 

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

 

12.Amendments and supplements

 

Both Parties may make amendments and supplements to this Agreement by written agreement. The amendments and supplements regarding this Agreement executed by both Parties are the constituent parts of this Agreement and shall have equivalent legal effect as this Agreement.

 

13.Language and Copies

 

This Agreement is written in Chinese in two originals. Each party shall retain one and all the originals shall be equally valid.

 

 [The remainder of this page intentionally left blank.]

 

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 [Signature Page]

 

 

 

Shanghai Quyun Internet Technology Co., Ltd.

 (Seal)

 

Signature: /s/ Fei Shen       

Name: Fei Shen

Title: Legal Representative

 

 

 

 

 

 

 

Anhui Zhangduan Internet Technology Co., Ltd.

 (Seal)

 

Signature: /s/ Mengdie Hua   

Name: Mengdie Hua

Title: Legal Representative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Signature Page of Exclusive Technical and Consulting Service Agreementqtt-ex430_161.htm

Exhibit 4.30

 

Exclusive Option Agreement

 

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

 

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

 

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

 

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

 

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

 

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

 

Whereas:

 

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

 

	
2.
	
The Shareholders intend to grant the Sole Corporation an irrevocable and exclusive option to buy all the equity interest of the Company held by shareholders.

 

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

 

	
1.
	
Sales and Purchase of Equity Interests

 

	
 
	
1.1
	
Option Granted

 

The Shareholders hereby irrevocably grant the Sole Corporation an irrevocable and exclusive right to purchase the equity interest without any additional condition (“Equity Interest Purchase Option”), pursuant to which the Sole Corporation is granted to require the Shareholders to perform and complete all the approval and registration procedure required by PRC law so as the Sole Corporation may, at the price stated in Article 1.3 in this Agreement and in accordance with the steps decided solely by itself to the extent permitted by PRC law, to purchase, or designate a person or several persons (each, a “Designee”) to purchase, once or at multiple times at any time, all or part of the equity interest held by the Shareholders. The Sole 

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Corporation agrees to accept such Equity Interest Purchase Option. The Equity Interest Purchase Option shall be exclusive. Except for the Sole Corporation and its Designees, no other third parties shall have the Equity Interest Purchase Option or other rights related to the Shareholders’ equity interest. The Company hereby agrees to the Shareholder’s grant of the Equity Interest Purchase Option to the Sole Corporation. The term “Person” used in this Article and this Agreement shall refer to individuals, corporations, cooperative enterprises, partnerships, enterprises, trusts or non-corporate organizations.

 

	
 
	
1.2
	
Steps for Exercise

 

Subject to the compliance with PRC laws and regulations, the Sole Corporation may exercise its Equity Interest Purchase Option by sending a written notice to the Shareholders (“Equity Interest Purchase Option Notice”), in which shall specify: (a) the decision of the Sole Corporation to exercise its Equity Interest Purchase Option; (b) the percentage of equity interest the Sole Corporation intend to purchase from the Shareholders (“Optioned Interests”); and (c) the date for purchasing/transferring the Optioned Interests (“Transferring Date”).

 

	
 
	
1.3
	
Equity Interest Purchase Price

 

When exercising its option, before the Shareholders are required to process the related Industry and Commerce Modification Registration, the Sole Corporation or its appointed entities or persons shall pay the Shareholders the corresponding transfer price which is the lowest price permitted under the PRC law and in accordance with the corresponding percentage of the Company’s equity interest to be transferred. The Shareholders agree that upon receiving such amount of transfer price, it shall, following specific instructions of the Sole Corporation, (i) use such transfer price to repay the loan under the Loan Contract (including the amendments, supplements and restatements from time to time) executed by the Shareholders and the Sole Corporation on the same date of this Agreement, and/or (ii) return to the Sole Corporation or its Designees by legal means.

 

	
 
	
1.4
	
Transfer of Optioned Interests

 

For each exercise of the Equity Interest Purchase Option by the Sole Corporation:

 

	
 
	
1.4.1
	
the Shareholders shall instruct the Company to convene a shareholders meeting in time, at which a resolution shall be adopted to approve the Shareholder’s transfer of the Optioned Interests to the Sole Corporation and/or the Designees.

 

	
 
	
1.4.2
	
the Shareholders shall obtain written statements from the other shareholders of the Company in which such shareholders shall agree with such transfer and to waive the right of first refusal in terms of transferring the Optioned Interests to the Sole Corporation and/or the 

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Designee s from the Shareholders.

 

	
 
	
1.4.3
	
the Shareholders shall execute an Equity Transfer Contract for every transfer with the Sole Corporation and/or (if applicable) the Designee according to the provisions of this Agreement and the Equity Interest Purchase Option Notice.

 

	
 
	
1.4.4
	
the relevant Parties shall execute all other necessary contracts, agreements or documents, obtain all necessary government permits and approvals and take all necessary actions to transfer the valid ownership of the Optioned Interests to the Sole Corporation and/or the Designees under the circumstances that there is no additional security interests, and cause the Sole Corporation and/or the Designees to become the registered owners of the Optioned Interests. For the purpose of this Article and this Agreement, the “Security Interests” shall include securities, mortgages, third party’s rights or interests, any purchase right, acquisition right, right of first refusal, right to offset, ownership retention or other guarantee arrangement; but for sake of clarity, it does not include any security interest created by this Agreement and the Share Pledge Agreement. The “Share Pledge Agreement” specified in this Article and this Agreement refers to the Share Pledge Agreement executed by the Sole Corporation, the Shareholders and the Company on the date of this Agreement. (“Share Pledge Agreement”)

 

	
2.
	
Covenants

 

	
 
	
2.1
	
Covenants concerning the Company

 

The Shareholders and the Company hereby covenant as follows:

 

	
 
	
2.1.1
	
without prior written consent of the Sole Corporation, not to supplement, change or amend the Company’s articles of association, increase or decrease its registered capital, or change its registered capital structure in any other manner;

 

	
 
	
2.1.2
	
to maintain the Company’s existence, manage its business and deal with its affairs prudently and effectively in accordance with good financial and business standards and practices;

 

	
 
	
2.1.3
	
without prior written consent of the Sole Corporation, not to sell, transfer, mortgage, or in any other manner dispose, or to create any other security interest on any asset, business or legal right to collect interests or beneficial interest of the Company at any time after the execution of this Agreement;

 

	
 
	
2.1.4
	
without prior written consent of the Sole Corporation, not to create, succeed to, guarantee or permit any debt, except for (i) any debt  incurred in the course of the ordinary or daily business operation other than through loans, and (ii) any debt disclosed to and agreed by the 

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Sole Corporation in writing;

 

	
 
	
2.1.5
	
to manage all the business in the course of the ordinary business operation to maintain the asset value of the Company, not to conduct any action/omission which is sufficient to affect its operating conditions and asset value;

 

	
 
	
2.1.6
	
without prior written consent of the Sole Corporation, not to execute any material contract, except for contracts executed in the course of the ordinary business operation (a contract will be deemed material if its total value exceeds RMB 1,000,000 in this Article);

 

	
 
	
2.1.7
	
without prior written consent of the Sole Corporation, not to provide a loan or financial credit to anyone;

 

	
 
	
2.1.8
	
to provide all material related to operation and financial condition of the Company as required by the Sole Corporation;

 

	
 
	
2.1.9
	
to purchase and hold, if required by the Sole Corporation, the insurance related to its assets and business from insurance companies acceptable to the Sole Corporation, at an amount and type of coverage typical for companies that operate similar businesses;

 

	
 
	
2.1.10
	
without prior written consent of the Sole Corporation, not to merge or combine with any person, or acquire or invest in any person with transaction value exceeding US$2,000,000;

 

	
 
	
2.1.11
	
to inform the Sole Corporation immediately upon the occurrence or possible occurrence of any litigation, arbitration or administrative proceeding concerning the assets, business or income of the Company;

 

	
 
	
2.1.12
	
to the extent necessary to maintain the Company’s ownership of its all assets, to execute all necessary or appropriate documents, take all necessary or appropriate actions and bring all necessary or appropriate lawsuits or make all necessary and appropriate defense against all claims;

 

	
 
	
2.1.13
	
without prior written consent of the Sole Corporation, not to distribute dividends in any way to each shareholder, except required by the Sole Corporation, the Company shall immediately distribute all the allocable profit to each shareholder;

 

	
 
	
2.1.14
	
in the event that the Company admits any new shareholder with the prior written consent of the Sole Corporation, to procure that the new shareholder sign an accession agreement to accede to this Agreement and assume the same obligations under this Agreement as the Shareholders;

 

	
 
	
2.1.15
	
to appoint anyone designated by the Sole Corporation to be the director or senior manager of the Company as required by the Sole 

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Corporation; 

 

	
 
	
2.1.16
	
not to engage in any business or activities that compete with the business of the Sole Corporation without the written consent of the Sole Corporation; and

 

	
 
	
2.1.17
	
not to dissolve the company or applying for a liquidation without the written consent of the Sole Corporation, unless mandatorily required by PRC laws.

 

	
 
	
2.2
	
Covenants concerning the Shareholders

 

The Shareholders hereby covenant as follows:

 

	
 
	
2.2.1
	
without prior written consent of the Sole Corporation, not to sell, transfer, mortgage, or in any other manner dispose, or to create any security interest on the legal interest or beneficial interest of the shares of the Company held by the Shareholders, except for the pledge set according to the Shareholder’s Share Pledge Agreement;

 

	
 
	
2.2.2
	
to procure the Company’s Shareholders Meeting and/or Board of Directors to disapprove to sell, transfer, mortgage, or in any other manner dispose, or to create any security interest on the legal interest or beneficial interest of the equity interest of the Company held by the shareholders without prior written consent of the Sole Corporation, except for the pledge set according to the Shareholder’s Share Pledge Agreement;

 

	
 
	
2.2.3
	
without prior written consent of the Sole Corporation, to procure the Company’s Shareholders Meeting or the Board of Directors not to approve the Company to merge or combine with, acquire or invest in, any person;

 

	
 
	
2.2.4
	
to inform the Sole Corporation upon the occurrence or possible occurrence of any litigation, arbitration or administrative proceeding concerning the equity interest they held;

 

	
 
	
2.2.5
	
to procure the Company’s Shareholders Meeting or the Board of Directors to vote to approve the transferring of the Optioned Interest stated in this Agreement and take any other action as required by the Sole Corporation; 

 

	
 
	
2.2.6
	
to the extent necessary to maintain its ownership of the equity interests, to execute all necessary or appropriate documents, take all necessary or appropriate actions and bring all necessary or appropriate lawsuits or make all necessary and appropriate defense against all claims.

 

	
 
	
2.2.7
	
to appoint anyone designated by the Sole Corporation to be the 

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director and/or the executive director of the Company as required by the Sole Corporation.

 

	
 
	
2.2.8
	
as required by the Sole Corporation at any time, to transfer its equity interest immediately to the representative appointed by the Sole Corporation at any time without any condition according to the Equity Interest Purchase Option under this Agreement and waive its right of first refusal of transferring corresponding equity interest of any other shareholder; 

 

	
 
	
2.2.9
	
to, in compliance with applicable PRC laws, donate the profits, dividend, and distributions from liquidation of the Company to the Sole Corporation or a person designated by the Sole Corporation in a timely manner; and

 

	
 
	
2.2.10
	
to strictly comply with this Agreement and any provision of other contracts executed by the Shareholders, the Company and the Sole Corporation jointly or respectively, to practically perform each of the obligations under such contracts and do not conduct any action/omission which is sufficient to affect the validity and enforceability of such contracts;

 

	
3.
	
Representations and Warranties

The Shareholders and the Company hereby represent and warrant to the Sole Corporation, jointly and respectively, as of the date of this Agreement and as of each Transferring Date, that:

 

	
 
	
3.1
	
They have the authority to execute and deliver this Agreement, any share transfer contract executed for each assignment of the Optioned Interests (each referred to as a “Transfer Contract”) to which they are parties according to this Agreement, and have the authority and ability to perform their obligations under this Agreement and any of the Transfer Contracts. The Shareholders and the Company agree to enter into the Transfer Contracts consistent with the terms of this Agreement when the Sole Corporation exercises the purchase options. This Agreement and the Transfer Contracts to which they are parties constitute or shall constitute their legal, valid and binding obligations and shall be enforceable against them in accordance with the provisions upon execution;

 

	
 
	
3.2
	
The execution and delivery of this Agreement or any of the Transfer Contracts and the performance of the obligations under this Agreement or any of the Transfer Contracts shall not: (i) cause the violation of any related PRC law; (ii) be inconsistent with the articles of association or other constitutional documents; (iii) cause the violation of any contract or document to which they are parties or are binding to them, or constitute breach of contract under any contract or document to which they are parties or are binding to them; (iv) cause the violation of any condition for the grant and/or continued effectiveness of any permit or approval issued to any party; or (v) cause the suspension, or revocation of, or additional conditions to any 

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permit or approval issued to any party;

 

	
 
	
3.3
	
The shareholders have a good and merchantable title on the equity interest of the Company, and have not placed any security interest on such equity interests except for the pledge set pursuant to Shareholders’ Share Pledge Agreements;

 

	
 
	
3.4
	
The Company has a good and merchantable title to all the assets and the Company has not set any security interest on such assets.

 

	
 
	
3.5
	
The Company does not have any outstanding debt, except for (i) debts incurred in the ordinary course of business, and (ii) debts disclosed to and agreed by the Sole Corporation in writing;

 

	
 
	
3.6
	
The Company complies with all the laws and regulations applicable to the acquisition of equity interest and assets; and

 

	
 
	
3.7
	
There are no pending or threatening lawsuits, arbitrations or administrative proceedings related to equity interest, assets of the Company or the Company at present.

 

	
4.
	
Effective Date

 

This Agreement shall come into effect upon the execution of this Agreement of the Parties, and remain effect and force until the Shareholders have transferred the whole Equity Interest in accordance with terms of this Agreement to the Sole Corporation or designated person of the Sole Corporation.

 

	
5.
	
Applicable Law and Dispute Resolution

 

	
 
	
5.1
	
Applicable Law

 

The execution, effectiveness, interpretation, implementation, amendment and termination of this Agreement and the resolution of disputes shall be governed by officially issued PRC laws publically available. For the matters that are not regulated under officially issued PRC laws publically available, International laws and conventions shall apply.

 

	
 
	
5.2
	
Dispute Resolution

 

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

 

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6.
	
Taxes and Expenses

 

Each Party shall pay any and all of the taxes, costs and expenses for transfer and registration incurred thereby or levied thereon under PRC law in connection with the preparation and execution of this Agreement and other Transfer Contracts and the consummation of the transactions contemplated under this Agreement and other Transfer Contracts. 

 

	
7.
	
Notice

 

	
 
	
10.1
	
All notices and other communications required or sent under this Agreement shall be delivered personally, registered post, postage paid or business express service or fax to the Party’s following address. Each notice shall also be delivered by email. The dates on which the notices shall be deemed to have been effectively delivered shall be determined as follows:

 

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

 

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

 

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

 

Shareholders:

Wanting Xu

Address: [REDACTED]

Recipient: [REDACTED]

Mobile:  [REDACTED]

 

Min Gao

Address: [REDACTED]

Recipient: [REDACTED]

Mobile:  [REDACTED]

 

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

Address: [REDACTED]

Recipient: [REDACTED]

Mobile:  [REDACTED]

 

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

Address: [REDACTED]

Recipient: [REDACTED]

Mobile:  [REDACTED]

 

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

8

 

 

	
8.
	
Confidentiality

 

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

 

	
9.
	
Further Covenants

 

The Parties agree to promptly execute documents that are reasonably required for or are conducive to the implementation of the provisions and purposes of this Agreement and take further actions that are reasonably required for or are conducive to the implementation of the provisions and purposes of this Agreement. 

 

	
10.
	
Liability of Breach

 

	
 
	
10.1
	
The Sole Corporation has the right to terminate this Agreement and/or require the Shareholders and the Company to fully indemnify the Sole Corporation if the Shareholders or the Company substantially breach any sections hereof; this section 10 shall not preclude any other rights of the Sole Corporation hereunder.

 

	
 
	
10.2
	
Unless otherwise provided for by applicable laws, the Shareholders or the Company have no right to terminate or cancel this Agreement.

 

	
11.
	
Miscellaneous

 

	
 
	
11.1
	
Revision, Amendment and Supplement

 

Any revision, amendment or supplement to this Agreement shall be executed in a written agreement by each Party. 

 

	
 
	
11.2
	
Entire Contract

 

Except for the revisions, supplements or amendments in writing executed after the execution of this Agreement, this Agreement shall constitute an 

9

 

entire contract reached by and among the Parties hereto with respect to the subject matter hereof, replacing all prior oral or written negotiations, statements and contracts beforehand in terms of the object of this Agreement.

 

	
 
	
11.3
	
Title

 

The title of this Agreement is only set for convenience, which shall not be used to interpret, state or otherwise affect the meaning of all the provisions in this Agreement.

 

	
 
	
11.4
	
Language

 

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

 

	
 
	
11.5
	
Severability

 

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

 

	
 
	
11.6
	
Assignment

 

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

 

	
 
	
11.7
	
Successors

 

This Agreement shall be binding on the successor of each party and the permitted transferee.

 

	
 
	
11.8
	
Survival

 

	
 
	
11.8.1
	
Any obligation caused or due by this Agreement upon the expiration or early termination of this Agreement shall survive and remain in force after the expiration or early termination of this Agreement.

 

	
 
	
11.8.2
	
Article 5, 7, 8 and 11.8 of this Agreement shall survive and remain 

10

 

	
 
		
in force after the termination of this Agreement. 

 

	
 
	
11.9
	
Waivers

 

Any Party may waive the terms and conditions of this Agreement in writing with signatures of the Parties. No waiver by any Party in certain circumstances with respect to a breach by other Parties shall operate as a waiver by such a Party with respect to any similar breach in other circumstances.

 

 

[The remainder of this page intentionally left blank.]

11

 

 [Signature Page]

 

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

 

 

Wanting Xu

Signature: /s/ Wanting Xu   

 

 

Min Gao

Signature: /s/ Min Gao     

 

 

Shanghai Quyun Internet Technology Co., Ltd.

 (Seal)

 

Signature: /s/ Fei Shen     

Name: Fei Shen 

Title: Legal Representative

 

 

Anhui Zhangduan Internet Technology Co., Ltd.

 (Seal)

 

Signature: /s/ Mengdie Hua  

Name: Mengdie Hua 

Title: Legal Representative

 

 

The Signature Page of Exclusive Option Agreement

Schedule I

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

Shareholding Structure:

			
	
Shareholder Name
	
Amount of Contribution of Company’s registered capitals

(RMB/Yuan)
	
Shareholding Ratio

	
Wanting Xu
	
6,000,000
	
60%

	
Min Gao
	
4,000,000
	
40%

	
Total
	
10,000,000
	
100%

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