Document:

Exhibit 4.41

 

SUBSCRIPTION AGREEMENT

 

by and between

 

JD.COM, INC.

 

and

 

GOOGLE LLC

 

Dated as of June 18, 2018

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I   DEFINITION AND INTERPRETATION
    	
1
    
	
Section 1.1
    	
Definition, Interpretation   and Rules of Construction
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II   CERTAIN TRANSACTIONS; CLOSING
    	
6
    
	
Section 2.1
    	
Certain Transactions
    	
6
    
	
Section 2.2
    	
Closing and Closing   Deliverables
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE III   REPRESENTATIONS AND WARRANTIES
    	
8
    
	
Section 3.1
    	
Representations and   Warranties of the Company
    	
8
    
	
Section 3.2
    	
Representations and   Warranties of the Purchaser
    	
16
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   COVENANTS
    	
18
    
	
Section 4.1
    	
Post-Closing   Obligations
    	
18
    
	
Section 4.2
    	
Securities Law Filings
    	
18
    
	
Section 4.3
    	
Distribution Compliance   Period
    	
18
    
	
Section 4.4
    	
Compliance with   Transaction Agreements
    	
18
    
	
 
    	
 
    	
 
    
	
ARTICLE V   INDEMNIFICATION
    	
19
    
	
Section 5.1
    	
Indemnification
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE VI   MISCELLANEOUS
    	
19
    
	
Section 6.1
    	
Survival of the   Representations and Warranties
    	
19
    
	
Section 6.2
    	
Governing Law;   Arbitration
    	
19
    
	
Section 6.3
    	
Third Party   Beneficiaries
    	
19
    
	
Section 6.4
    	
Amendment
    	
19
    
	
Section 6.5
    	
Binding Effect
    	
20
    
	
Section 6.6
    	
Assignment
    	
20
    
	
Section 6.7
    	
Notices
    	
20
    
	
Section 6.8
    	
Entire Agreement
    	
21
    
	
Section 6.9
    	
Severability
    	
21
    
	
Section 6.10
    	
Fees and Expenses
    	
21
    
	
Section 6.11
    	
Confidentiality
    	
22
    
	
Section 6.12
    	
Specific Performance
    	
22
    
	
Section 6.13
    	
Headings
    	
23
    
	
Section 6.14
    	
Execution in   Counterparts
    	
23
    
	
Section 6.15
    	
Public Disclosure
    	
23
    
	
Section 6.16
    	
Waiver
    	
23
    
	
Section 6.17
    	
No Partnership
    	
24
    
	
 
    	
 
    	
 
    
	
Schedule 1
    	
 
    	
S-1-1
    

 

i

 

SUBSCRIPTION AGREEMENT

 

This Subscription Agreement (this “Agreement”) is made as of June 18, 2018, by and between:

 

1.             JD.com, Inc., a company incorporated under the laws of the Cayman Islands (the “Company”); and

 

2.             Google LLC, a Delaware limited liability company (the “Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS, the Purchaser desires to subscribe for and be issued from the Company, and the Company desires to allot and issue to the Purchaser, certain class A ordinary shares, each with a par value US$0.00002 per share of the Company (“Class A Ordinary Shares”), pursuant to the terms and conditions set forth in this Agreement;

 

WHEREAS, in relation to this Agreement, the Company and the Purchaser desire to enter into an investor rights agreement (the “Investor Rights Agreement”), in substantially the same form attached hereto as Exhibit A, to memorialize their mutual agreements and understandings relating to the Purchaser’s ownership of the Class A Ordinary Shares and certain rights granted to the Purchaser by the Company in relation thereto; and

 

WHEREAS, in relation to this Agreement, the Company and the Purchaser desire to enter into the BCA (as defined below) pursuant to the terms and conditions set forth in this Agreement and the other Transaction Agreements (as defined below).

 

NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements set forth herein, as well as other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the Parties hereto, intending to be legally bound, agrees as follows:

 

ARTICLE I

 

DEFINITION AND INTERPRETATION

 

Section 1.1            Definition, Interpretation and Rules of Construction.

 

(a)           As used in this Agreement, the following terms have the following meanings:

 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls or is controlled by the subject Person or together with the subject Person is jointly controlled by any third party. “control” of a given Person means the power or authority, whether exercised or not, to direct the business, management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; provided, that such power or authority shall conclusively be presumed to exist upon possession of beneficial ownership or power to direct the vote of fifty percent (50%) or more of the votes entitled  to be cast at a meeting of the members or shareholders of such Person or power to control the composition of a majority of the board of directors of such Person; the terms “controlled” and “controlling” have meanings correlative to the foregoing. With respect to any Person, its “Affiliates” includes the Subsidiaries, whether directly or indirectly owned, that are controlled by it (including the PRC domestic affiliate companies controlled by such Person through a VIE structure).

 

1

 

“Applicable Laws” means any and all provisions of any applicable constitution, treaty, statute, law, regulation, ordinance, code, rule, or rule of common law, any governmental approval, concession, grant, franchise, license, agreement, directive, requirement, or other governmental restriction or any similar form of decision of, or determination by, or any formally issued written interpretation or administration of any of the foregoing by, any Governmental Entity, in each case as amended, and any and all applicable government orders.

 

“Approvals” means any license, consent, authorization, order, confirmation, qualification, permission, certificate, approval, record-filing, registration and/or permit.

 

“BCA” means the business cooperation agreement entered into by and between the Company and the Purchaser on the date hereof.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in the PRC, Hong Kong or New York are required or authorized by Applicable Law or executive order to be closed or on which a tropical cyclone warning no. 8 or above or a “black” rainstorm warning signal is hoisted in Hong Kong at any time between 9:00 a.m. and 5:00 p.m. Hong Kong time.

 

“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, or any successor statute.

 

“Contracts” means any contract, agreement, indenture, note, bond, loan, instrument, lease, conditional sale contract, mortgage, security agreement, license, franchise, commitment or other arrangement or agreement, whether written or oral.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

“Fundamental Representations” means (i) the representations and warranties that are identified as “Fundamental Representations” in any other Transaction Agreement and (ii) the representations and warranties set forth under Section 3.1(a), Section 3.1(b), Section 3.1(c), Section 3.1(g), Section 3.2(a), Section 3.2(b) and Section 3.2(c) of this Agreement.

 

“Governmental Entity” means any federal, national, state, provincial or local, whether domestic (i.e., in the PRC) or foreign, government or any court of competent jurisdiction, administrative agency or commission or other governmental, regulatory, self-regulatory or enforcement authority or instrumentality, whether domestic, foreign or supranational, in each case including any successor entity performing the same or a similar function and including any arbitrator.

 

2

 

“Hong Kong” means the Hong Kong Special Administrative Region of the PRC.

 

“Lien” means any claim, charge, easement, encumbrance, lease, covenant, security interest, lien, option, pledge, rights of others, mortgage,  power of sale, hypothecation, retention of title, right of pre-emption, court freezing order or other judicial order preventing or restricting dispositions or other restriction (whether on voting, sale, transfer, disposition or otherwise), whether imposed by contract, law, equity or otherwise.

 

“Material Adverse Effect” means any event, fact, circumstance or occurrence that, individually or in the aggregate with any other events, facts, circumstances or occurrences, has had, has, or would reasonably be expected to have a material adverse change in or a material adverse effect on (i) the condition (financial or otherwise), affairs, assets, properties, employees, liabilities, results of operations, business or operations of such party and its Affiliates taken as a whole, or (ii) the ability of such party to consummate the transactions contemplated by the Transaction Agreements and to timely perform its material obligations hereunder and thereunder, in each case except to the extent that any such material adverse change or effect results or arises from (A) any action required to be taken pursuant to the terms and conditions of this Agreement, (B) changes in generally accepted accounting principles that are generally applicable to comparable companies (to the extent not materially disproportionately affecting such party or its Affiliates), (C) changes in general economic and market conditions (to the extent not materially disproportionately affecting such party or its Affiliates), (D) the execution, announcement or disclosure of this Agreement or any other Transaction Agreement or the pendency or consummation of the transactions hereunder or thereunder, (E) actions or omissions of the other Party or its Affiliates, or actions or omissions of a Party or its Affiliates that have been consented to by the other Party in writing or otherwise contemplated by the Transaction Agreements, (F) changes in general legal, tax or regulatory conditions (to the extent not materially disproportionately affecting such party or its Affiliates), (G) changes in national or international political or social conditions, including any engagement in hostilities or the occurrence of any military or terrorist attack or civil unrest, or (H) earthquakes, hurricanes, floods or other natural disasters.

 

“Person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, or unincorporated organization, or any Governmental Entity, officer, department, commission, board, bureau, or instrumentality thereof.

 

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

 

“Representatives” means, with respect to any Person, such Person’s officers, directors, employees and agents.

 

“Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002, as amended.

 

“SEC” means the Securities and Exchange Commission of the United States of America or any other federal agency at the time administering the Securities Act.

 

3

 

“Significant Subsidiaries” means the Subsidiaries of the Company as listed in Exhibit 8.1 of the Form 20-F of the Company for the fiscal year ended December 31, 2017 (but excluding Fortune Rising Holdings Limited), each a “Significant Subsidiary”.

 

“Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

“Subsidiary” with respect to any Person, means any other Person, whether or not existing on the date hereof, in which the specified Person directly or indirectly through Affiliates or otherwise, beneficially owns at least fifty percent (50%) of either the equity interests or voting power of or in such other Person or otherwise controls such other Person, whether through Contract or otherwise (including, for the avoidance of doubt, any VIEs that are consolidated into the financial statements of such Person in accordance with the generally accepted accounting principles applicable to such Person).

 

“Tax” or “Taxes” means (i) all taxes, governmental levies, or other like governmental assessments including all federal, state, county, local, municipal, or foreign corporate franchise, income, sales, use, ad valorem, receipts, value added, profits, license, withholding, payroll, employment, property, customs, net worth, capital gains, transfer, stamp, documentary, social security, environmental, alternative minimum, occupation, recapture, accumulated earnings, windfall profits, estimated and other taxes, charges, duties or levies imposed or collected by any Governmental Entity, including any amount owed in respect of any Applicable Law relating to unclaimed property or escheat, all interest, penalties and additions imposed with respect to such amounts, and (ii) any amount owing in respect of clause (i) as a result of being a member of a combined, consolidated, unitary, affiliated or similar group, as a transferee or successor, by Contract or pursuant to Applicable Law.

 

“Transaction Agreements” means this Agreement, the Investor Rights Agreement, the BCA and each other document or agreement that is (i) confirmed in writing by the Company (or any of its Affiliates) and Purchaser (or any of its Affiliates) as a Transaction Agreement, or (ii) entered into or delivered in connection with the transactions contemplated hereby and thereby by and among the Company or any of its Subsidiaries and Affiliates on the one hand, and the Purchaser or any of its Subsidiaries and Affiliates on the other hand.

 

“U.S. GAAP” means the generally accepted accounting principles of the United States.

 

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

 

“VIE” means variable interest entity.

 

(b)           Each of the following terms is defined in the Section set forth opposite such term:

 

4

 

	
Term
    	
 
    	
Section
    
	
“ADSs”
    	
 
    	
3.1(f)
    
	
“Agreement”
    	
 
    	
Preamble
    
	
“CFC”
    	
 
    	
3.1(p)
    
	
“Class A Ordinary Shares”
    	
 
    	
Recitals
    
	
“Closing”
    	
 
    	
2.2(a)
    
	
“Closing Date”
    	
 
    	
2.2(a)
    
	
“Company”
    	
 
    	
Preamble
    
	
“Company Financial Statements”
    	
 
    	
3.1(h)(ii)
    
	
“Confidential Information”
    	
 
    	
6.11(a)
    
	
“Dispute”
    	
 
    	
6.2
    
	
“Disqualification Event”
    	
 
    	
3.1(u)
    
	
“FINRA”
    	
 
    	
3.2(f)(vi)
    
	
“Government Officials”
    	
 
    	
3.1(o)(iii)
    
	
“Investor Rights Agreement”
    	
 
    	
Recitals
    
	
“Issue Price”
    	
 
    	
2.1
    
	
“Issuer Covered Person”
    	
 
    	
3.1(u)
    
	
“Material Contracts”
    	
 
    	
3.1(l)
    
	
“Material Permits”
    	
 
    	
3.1(o)(vii)
    
	
“Nasdaq”
    	
 
    	
3.1(f)
    
	
“PFIC”
    	
 
    	
3.1(q)
    
	
“Purchaser”
    	
 
    	
Preamble
    
	
“SEC Documents”
    	
 
    	
3.1(h)(i)
    
	
“Subpart F Income”
    	
 
    	
3.1(p)
    
	
“Subscription Shares”
    	
 
    	
2.1(a)
    

 

(c)           In this Agreement, except to the extent otherwise provided or that the context otherwise requires:

 

(i)            The words “Party” and “Parties” shall be construed to mean a party or the parties to this Agreement, and any reference to a party to this Agreement or any other agreement or document contemplated hereby shall include such party’s successors and permitted assigns.

 

(ii)           When a reference is made in this Agreement to an Article, Section, Exhibit or clause, such reference is to an Article, Section, Exhibit or clause of this Agreement.

 

(iii)          The headings for this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation of this Agreement.

 

(iv)          Whenever the words “include,” “includes” or “including” are used in this Agreement, they are deemed to be followed by the words “without limitation.”

 

(v)           The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this Agreement.

 

(vi)          All terms defined in this Agreement have the defined meanings when used in any certificate or other document made or delivered pursuant hereto, unless otherwise defined therein.

 

5

 

(vii)         The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms.

 

(viii)        The use of “or” is not intended to be exclusive unless expressly indicated otherwise.

 

(ix)          The term “$” means United States Dollars.

 

(x)           The word “will” shall be construed to have the same meaning and effect as the word “shall.”

 

(xi)          A reference to any legislation or to any provision of any legislation shall include any modification, amendment, re-enactment thereof, any legislative provision substituted therefor and all rules, regulations and statutory instruments issued or related to such legislation.

 

(xii)         References herein to any gender include the other gender.

 

(xiii)        The Parties hereto have each participated in the negotiation and drafting of this Agreement and if any ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted jointly by the Parties hereto and no presumption or burden of proof shall arise favoring or burdening any Party by virtue of the authorship of any of the provisions in this Agreement or any interim drafts thereof.

 

ARTICLE II

 

CERTAIN TRANSACTIONS; CLOSING

 

Section 2.1            Certain Transactions. Upon the terms and subject to the conditions contained in this Agreement, the Purchaser shall subscribe for and purchase, and the Company shall issue and sell to the Purchaser, 27,106,948 shares of Class A Ordinary Shares (the “Subscription Shares”), free and clear of all Liens (except for restrictions created by virtue of this Agreement or any other Transaction Agreements), at an issue price (the “Issue Price”) of US$20.29 per Subscription Share, or US$549,999,974.92 in the aggregate.

 

Section 2.2            Closing and Closing Deliverables.

 

(a)           Closing. The closing of the transactions contemplated hereunder (the “Closing”) shall take place remotely via the electronic exchange of the closing documents and signatures (followed by prompt delivery of the originals therefor) concurrently with the satisfaction or waiver of all conditions and delivery obligations of the Parties set forth herein on the date hereof (the “Closing Date”). All transactions occurring at the Closing shall be deemed to occur simultaneously, and shall be effective as of the Closing and upon occurrence of all transactions contemplated by Section 2.1. For the avoidance of doubt, the consummation of the transactions contemplated by this Agreement and the Transaction Agreements shall occur together, and the Closing shall be deemed not to have occurred if any Party fails to deliver any agreement or other instrument or document required or contemplated under this Section 2.2.

 

6

 

(b)                                 At the Closing, the Purchaser shall:

 

(i)                                     pay to the Company the Issue Price by wire transfer of funds to a bank account in the name of the Company outside the PRC designated by the Company in writing; provided, that the Purchaser shall be deemed to have complied with this Section 2.2(b) so long as the Purchaser provides the Company with a copy of the irrevocable instructions provided to the Purchaser’s bank authorizing the wire at the Closing;

 

(ii)                                  deliver to the Company copies of the Transaction Agreements duly and validly executed by the Purchaser; and

 

(iii)                               deliver or cause the delivery of all the documents expressly required under the Transaction Agreements required to be delivered to the Company at Closing.

 

(c)                                  At the Closing, the Company shall:

 

(i)                                     allot and issue to the Purchaser, the Subscription Shares;

 

(ii)                                  cause its register of members to be duly updated to reflect the issue and allotment of the Subscription Shares to the Purchaser, and deliver to the Purchaser (1) a certified copy of such updated register of members, and (2) share certificate(s) representing the Subscription Shares in the name of the Purchaser;

 

(iii)                               deliver to the Purchaser copies of the Transaction Agreements duly and validly executed by the Company; and

 

(iv)                              deliver to the Purchaser a certificate signed by an authorized signatory of the Company, certifying that all corporate actions required to be taken by the Company in connection with the transactions contemplated under the Transaction Agreements have been completed.

 

(d)                                 Restrictive Legend. Each certificate representing any of the Subscription Shares shall be endorsed with the following legend:

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (AS AMENDED, THE “SECURITIES ACT”) OR UNDER THE SECURITIES LAWS OF ANY STATE. THIS SECURITY MAY NOT BE TRANSFERRED, SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED: (A) IN THE ABSENCE OF (1) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (2) AN EXEMPTION OR QUALIFICATION UNDER APPLICABLE SECURITIES LAWS, AND (B) IF NOT OTHERWISE IN COMPLIANCE WITH THE SUBSCRIPTION AGREEMENT BETWEEN THE COMPANY AND GOOGLE LLC, DATED JUNE 18, 2018 (THE “SUBSCRIPTION AGREEMENT”) AND THE INVESTOR RIGHTS AGREEMENT BETWEEN THE COMPANY AND GOOGLE LLC, DATED JUNE 18, 2018 (THE “INVESTOR RIGHTS AGREEMENT”). ANY ATTEMPT TO TRANSFER, SELL, PLEDGE OR HYPOTHECATE THIS SECURITY IN VIOLATION OF THESE RESTRICTIONS OR ANY OTHER RESTRICTIONS SET FORTH IN THE SUBSCRIPTION AGREEMENT OR THE INVESTOR RIGHTS AGREEMENT SHALL BE VOID.

 

7

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES

 

Section 3.1                                    Representations and Warranties of the Company. The Company hereby represents and warrants to the Purchaser, as of the date hereof and as of the Closing, that:

 

(a)                                 Due Formation and Qualification.

 

(i)                                     The Company is an exempted company, duly incorporated, validly existing and in good standing under the laws of the Cayman Islands, has the requisite corporate power and authority to own, lease and operate its business and assets and to conduct its business as currently conducted and as described in the SEC Documents, and is duly qualified to transact business in all material respects in each jurisdiction in which the conduct of its business or its ownership, leasing or operation of property requires such qualification.

 

(ii)                                  Except as set forth in the SEC Documents, (1) the Company owns, directly or indirectly, the capital stock or other equity interests of each Significant Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Significant Subsidiary are (A) validly issued, (B) either fully paid, or duly paid in accordance with the payment schedule set forth in its articles of association, bylaws or other organizational or charter documents, (C) non-assessable and (D) free of preemptive (except for those statutory rights provided for under Applicable Law) and similar rights to subscribe for or purchase securities; (2) each Significant Subsidiary of the Company is an entity duly incorporated or otherwise organized, validly existing and in good standing (or its foreign equivalent) under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted, in all material respects; and (3) neither the Company nor any of its Significant Subsidiaries is in material violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents.

 

(b)                                 Authority; Valid Agreement. The Company has all requisite legal power and authority to execute, deliver and perform its obligations under the Transaction Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of each of the Transaction Agreements by the Company have been duly authorized by all necessary corporate action on the part of the Company. This Agreement has been, and each other Transaction Agreement will be duly executed and delivered by the Company and, assuming due authorization, execution and delivery by the Purchaser and the other parties thereto, constitutes (or, when executed and delivered in accordance therewith will constitute) a legal, valid and binding obligation of the Company, as the case may be, enforceable against the Company 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 Applicable Laws relating to the availability of specific performance, injunctive relief, or other equitable remedies or general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or Applicable Law).

 

8

 

(c)                                  Due Issuance of the Subscription Shares. The Subscription Shares are duly authorized and, when issued in accordance with this Agreement, will be validly issued, fully paid and non-assessable and free and clear of any Lien, right of first refusal, third party right or interest, claim or restriction of any kind or nature, except for restrictions arising under the Securities Act or created by virtue of this Agreement or any other Transaction Agreements. Upon entry of the Purchaser into the register of members of the Company as the legal owner of the Subscription Shares, the Company will transfer to the Purchaser good and valid title to the Subscription Shares.

 

(d)                                 Non-contravention. None of the execution and the delivery of this Agreement and the other Transaction Agreements nor the consummation of the transactions contemplated hereby or thereby, by the Company will (i) violate any provision of the organizational documents of the Company or violates any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any Governmental Entity to which the Company is subject, or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of or creation of an Lien under, or create in any party the right to accelerate, terminate, modify, or cancel, any material Contract to which the Company is a party or by which the Company is bound or to which any of the Company’s assets are subject. There is no existing, pending or threatened action, suit or proceeding against the Company that questions the validity of the Transaction Agreements or the right of the Company to enter into this Agreement or any other Transaction Agreement to which it is a party or to consummate the transactions contemplated hereby or thereby.

 

(e)                                  Consents and Approvals. Subject to the accuracy of the representations and warranties of the Purchaser under this Agreement and other Transaction Agreements, none of the execution and delivery by the Company of this Agreement or any other Transaction Agreements to which it is a party, nor the consummation by the Company of any of the transactions contemplated hereby or thereby, nor the performance by the Company of this Agreement or such other Transaction Agreements in accordance with their respective terms requires the Approval, order or authorization of, or registration with, or the giving notice to, any Governmental Entity or any third party, except such as have been or will have been obtained, made or given on or prior to the Closing and those filings required to be made with the SEC (including, without limitation, a Form 6-K and a Form D).

 

(f)                                   Compliance with Nasdaq requirements. The Company is, and the consummation of the transactions contemplated hereby will be, in compliance with the applicable listing and corporate governance rules and regulations of the Nasdaq Stock Market LLC (“Nasdaq”). The Company has not taken any action designed to, or reasonably likely to have the effect of, delisting the American Depositary Shares representing Class A Ordinary Shares (the “ADSs”) from Nasdaq. The Company has not received any notification that the SEC or Nasdaq is contemplating suspending or terminating such listing (or the applicable registration under the Exchange Act related thereto). The Company is in compliance with the Sarbanes-Oxley Act and any and all applicable rules and regulations promulgated by the SEC thereunder in all material respects.

 

9

 

(g)                                  Capitalization.

 

(i)                                     The authorized share capital of the Company is US$2,000,000 divided into 99,000,000,000 Class A Ordinary Shares of a nominal or par value of US$0.00002 each and 1,000,000,000 class B ordinary shares of a nominal or par value of US$0.00002 each, of which 2,418,641,702 Class A Ordinary Shares and 460,631,551 class B ordinary shares are issued and outstanding as of May 31, 2018. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all applicable securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except as set forth in the SEC Documents, the Company has no outstanding bonds, debentures, notes or other obligations, the holders of which have the right to vote (or which are convertible into or exercisable for securities having the right to vote) with the shareholders of the Company on any matter. The Subscription Shares will represent 0.93% of the outstanding share capital of the Company (prior to the issuance of such Subscription Shares) on a Fully-Diluted (by Treasury Method) (as defined in the Investor Rights Agreement) basis as of May 31, 2018.

 

(ii)                                  Except as set forth above in this Section 3.1(g) and in the SEC Documents, there are no outstanding (A) shares of capital stock or voting securities of the Company, (B) securities of the Company convertible into or exchangeable for shares of capital stock or voting securities of the Company or (C) preemptive or other outstanding rights, options, warrants, conversion rights, “phantom” stock rights, stock appreciation rights, redemption rights, repurchase rights, agreements, arrangements, calls, commitments or rights of any kind that obligate the Company to issue or sell any shares of capital stock or other securities of the Company or any securities or obligations convertible or exchangeable into or exercisable for, or giving any Person a right to subscribe for or acquire, any securities of the Company, and no securities or obligations evidencing such rights are authorized, issued or outstanding.

 

(iii)                               Except as set forth in the SEC Documents, there are no stockholders agreements or voting agreements or registration rights, rights of first offer, rights of first refusal, tag-along rights, director appointment rights, governance rights or other similar rights with respect to the securities of the Company that have been granted to any Person.

 

(h)                                 SEC Matters; Financial Statements.

 

(i)                                     The Company has filed or furnished, as applicable, on a timely basis, all registration statements, proxy statements and other statements, reports, schedules, forms and other documents required to be filed or furnished by it with the SEC (all of the foregoing documents filed with or furnished to the SEC and all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”). As of their respective effective dates (in the case of the SEC Documents that are registration statements filed pursuant to the requirements of the Securities Act) and as of their respective SEC filing dates (in the case of all other SEC Documents), or in each case, if amended prior to the date hereof, as of the date of the last such amendment: (A) each of the SEC Documents complied in all material respects with the applicable requirements of the Securities Act, the Exchange Act and the Sarbanes-Oxley Act and any rules and regulations promulgated thereunder applicable to the SEC Documents (as the case may be) and (B) none of the SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the material statements therein, in the light of the circumstances under which they were made, not misleading, except that the Company will file Exhibit 99.1, 99.2 and 99.3 to its Form 20-F for the fiscal year ended December 31, 2017 by an amendment to the Form 20-F by June 30, 2018 as permitted by the applicable securities laws.

 

10

 

(ii)                                  The financial statements (including any related notes) contained in the SEC Documents (collectively, the “Company Financial Statements”): (A) complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, (B) were prepared in accordance with U.S. GAAP applied on a consistent basis throughout the periods covered thereby and (C) fairly present in all material respects the consolidated financial position of the Company and its Subsidiaries as of the respective dates thereof and the consolidated results of operations and cash flows of the Company and its Subsidiaries for the periods covered thereby, except as disclosed therein and as permitted under the Exchange Act.

 

(iii)                               The Company has established and maintains a system of internal control over financial reporting (as defined in Rule 13a-15 or 15d-15, as applicable, under the Exchange Act) sufficient to provide reasonable assurance regarding the reliability of financial reporting, including policies and procedures that (A) mandate the maintenance of records that in reasonable detail accurately and fairly reflect the material transactions and dispositions of the assets of the Company, (B) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and (C) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of material assets of the Company. There were no material weaknesses or significant deficiencies in the Company’s internal controls as of December 31, 2017. The Company’s auditors and the audit committee of the board of directors of the Company have not been advised of any fraud that involves management or other employees who have a significant role in the Company’s internal controls over financial reporting. Since December 31, 2017, there has been no change in the Company’s internal control over financial reporting that has materially adversely affected, or is reasonably likely to materially adversely affect, the Company’s internal control over financial reporting.

 

(iv)                              The “disclosure controls and procedures” (as defined in Rules 13a-15(e) or 15d-15(e), as applicable, under the Exchange Act) of the Company are designed to ensure that all material information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the management of the Company as appropriate to allow timely decisions regarding required disclosure.

 

(v)                                 The Company is not a party to and has no commitment to become a party to, any joint venture, off-balance sheet partnership or any similar Contracts or undertaking, or any “off-balance sheet arrangements” (as defined in Item 303(a) of Regulation S-K promulgated by the SEC), where the result, purpose or intended effect of such Contract or undertaking is to avoid disclosure of any material transaction involving, or material liabilities of, the Company in the Company’s published financial statements or other SEC Documents.

 

11

 

(i)                                     No Undisclosed Liabilities. Except as set forth in the SEC Documents, neither the Company nor any of its Subsidiaries has incurred or undertaken any material liabilities or obligations, whether direct or indirect, liquidated or contingent, matured or unmatured, or entered into any material transactions, including any acquisition or disposition of any material business or asset, that would be required to be disclosed on a consolidated balance sheet of the Company prepared in accordance with U.S. GAAP, other than (i) liabilities or obligations disclosed and provided for in the Company Financial Statements or in the notes thereto or otherwise disclosed in the SEC Documents, (ii) liabilities or obligations that have been incurred by the Company since December 31, 2017 in the ordinary course of business or (iii) liabilities or obligations arising under or in connection with the transactions contemplated by this Agreement or any other Transaction Agreements.

 

(j)                                    Investment Company. The Company is not and, after giving effect to the offering and sale of the Subscription Shares, will not be an “investment company,” as such term is defined in the U.S. Investment Company Act of 1940, as amended.

 

(k)                                 Brokers. The Company has not dealt with any broker, finder, commission agent, placement agent or arranger in connection with the sale of the Subscription Shares, and the Company is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Subscription Shares.

 

(l)                                     Contracts. The Company has filed as exhibits to the SEC Documents all Contracts and instruments (including all amendments thereto) that are required to be filed in the SEC Documents (the “Material Contracts”). Each Material Contract is in full force and effect, except those that have been fully performed or have expired or terminated in accordance with their terms. The Company is not in material default under, or in material breach or violation of, any Material Contract.

 

(m)                             Litigation. There are no pending or, to the knowledge of the Company, contemplated or threatened actions, claims, demands, investigations, examinations, indictments, litigations, suits or other criminal, civil or administrative or investigative proceedings before or by any Governmental Entity or by any other Person against the Company, its Subsidiaries or any of their respective directors or officers in their capacities as such, which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Agreements or the issuance and allotment of the Subscription Shares or (ii) would, if decided adversely, have or reasonably be expected to result in a Material Adverse Effect on the Company. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company or any director or officer of the Company.

 

(n)                                 Absence of Certain Changes. Except as set forth in the SEC Documents, since December 31, 2017, (i) there has been no event, occurrence of development that has had, has or would reasonably be expected to result in a Material Adverse Effect on the Company, (ii) the Company has not altered its method of accounting, (iii) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (iv) the Company has not issued any equity securities to any officer, director, employee or Affiliate of the Company and its Subsidiaries, except pursuant to existing stock option plans.

 

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(o)                                 Compliance with Laws.

 

(i)                                     The business of the Company and its Subsidiaries is being conducted in  compliance with all Applicable Laws or government order applicable to the Company or its Subsidiaries, including Applicable Laws relating to VIE, labor, anti-unfair competition, anti-trust and monopolistic market conduct, consumer rights protection, data and privacy protection, intellectual rights protection, anti-counterfeiting, anti-money laundering, online payments, consumer finance, insurance brokerage, online food business operation, online lottery issuance/sale, online pharmaceutical/medical device sales, multi-purpose commercial prepaid cards issuance and Tax, except as set forth in the SEC Documents and except for non-compliance that has not had, does not have or would not be reasonably expected to have a material adverse impact on the Company and its Subsidiaries taken as a whole.

 

(ii)                                  None of the Company nor its Subsidiaries, to the knowledge of the Company, any Representative of the Company or its Subsidiaries nor any independent sales representative, consultant, intermediary, distributor or any other Person acting on behalf of the Company or its Subsidiaries, has, directly or indirectly, taken any action which would cause them or any other Person to be in material violation of: (i) the Foreign Corrupt Practices Act of 1977, as amended, or any rules or regulations thereunder; (ii) the UK Bribery Act 2010; or (iii) any other applicable anti-corruption and/or anti-bribery laws, statutes, rules, regulations, ordinances, judgments, orders, decrees, injunctions, and writs of any Governmental Entity of China including the PRC Criminal Law and the PRC Anti-unfair Competition Law or any other jurisdiction applicable to the Company (whether by virtue of jurisdiction of organization or conduct of business).

 

(iii)                               None of the Company nor, to the knowledge of the Company, any Representative of the Company nor any independent sales representative, consultant, intermediary, distributor or any other Person acting on behalf of the Company, has, directly or indirectly, offered, paid, promised to pay, or authorized a payment, of any money or other thing of value (including any fee, gift, sample, travel expense or entertainment) or any commission payment, or any payment related to political activity, to any of the following persons for the purpose of influencing any act or decision of such person in his official capacity, inducing such person to do or omit to do any act in violation of the lawful duty of such official, securing any improper advantage, or inducing such person to use his influence with a foreign government or instrumentality thereof to affect or to influence any act or decision of such government or instrumentality, in order to assist the Company in obtaining or retaining business for or with, or directing the business to, any Person: (i) any person who is an agent, representative, official, officer, director, or employee of any non-U.S. government or any department, agency, or instrumentality thereof (including officers, directors, and employees of state-owned, operated or controlled entities) or of a public international organization; (ii) any person acting in an official capacity for or on behalf of any such government, department, agency, instrumentality, or public international organization; (iii) any political party or official thereof; (iv) any candidate for political or political party office (such recipients in clauses (i), (ii), (iii) and (iv) of this subsection collectively, “Government Officials”); or (v) any other individual or entity while knowing or having reason to believe that all or any portion of such money or thing of value would be offered, given, or promised, directly or indirectly, to any Government Official.

 

13

 

(iv)                              The books, records and accounts of the Company have at all times, in all material respects, accurately and fairly reflected, in reasonable detail, the transactions and dispositions of their respective funds and assets. There have never been any false or fictitious entries made in the books, records or accounts of the Company relating to any illegal payment or secret or unrecorded fund, and the Company has not established or maintained a secret or unrecorded fund.

 

(v)                                 None of the Company nor, to the knowledge of the Company, any Representative of the Company nor any independent sales representative, consultant, intermediary, distributor or any other Person acting on behalf of the Company, has, directly or indirectly, made any payments or transfers of value with the intent, or which have the purpose or effect, of engaging in commercial bribery, or acceptance of or acquiescence in kickbacks or other unlawful or improper means of obtaining business.

 

(vi)                              Except for those circumstances which would not result in violation of applicable anti-corruption and/or anti-bribery laws, neither the Company nor any of its directors, officers or employees is a Government Official.

 

(vii)                           The Company and its Subsidiaries possess all valid certificates, authorizations and Approvals issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Documents, including with respect to the following businesses of its Subsidiaries in China: value-added telecommunication services; distributions of food, books, audio and video products, medical devices; provision of drug sales marketplace services, courier and transportation services, air transportation sales agency services, drug information services, and distribution or provision of such other products or services which are subject to administrative permitting requirements in and under the Applicable Laws of, the PRC, except where the failure to possess such certificates, authorizations and permits would not reasonably be expected to result in a Material Adverse Effect on the Company (“Material Permits”), and neither the Company nor its Subsidiaries has received any notice of proceedings relating to the revocation or modification of any Material Permit, nor does there exist any event, fact, circumstance or development which would reasonably be expected to cause the revocation or cancellation of any Material Permit or the relevant Governmental Entities’ refusal to renew the same in the future on expiry of the same, except as would not reasonably be expected to result in a Material Adverse Effect on the Company.

 

(p)                                 Controlled Foreign Corporation. Immediately after the Closing, the Company will not be a “Controlled Foreign Corporation” (“CFC”) as defined in the Code with respect to the Subscription Shares. In the event that the Company is determined by its Tax advisors or the Tax advisors of the Purchaser to be a CFC with respect to the Subscription Shares, the Company agrees to use commercially reasonable efforts to avoid generating Subpart F Income (as defined in Section 952 of the Code) (“Subpart F Income”). The Company shall provide the Purchaser with access to such Company information as may be required by the Purchaser to determine the Company’s status as a CFC and to determine whether the Purchaser or any of the Purchaser’s Partners is required to report its pro rata portion of the Company’s Subpart F Income on its United States federal income tax return, or to allow the Purchaser or the Purchaser’s Partners to otherwise comply with applicable United States federal income tax laws. For purposes of this Section 3.1(p) and Section 3.1(q) below, (i) the term “Purchaser’s Partners” shall mean each of the Purchaser’s shareholders, members or other equity holders and any direct or indirect equity owners of such entities and (ii) the “Company” shall mean the Company and any of its Subsidiaries.

 

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(q)                                 Passive Foreign Investment Company. To its knowledge after consultation with its Tax advisors, the Company was not a “passive foreign investment company” (“PFIC”) within the meaning of Section 1297 of the Code for its taxable year ended December 31, 2017 and does not anticipate being a PFIC for its taxable year ending December 31, 2018. The Company shall make due inquiry with its Tax advisors on at least an annual basis regarding its status as a PFIC, and if the Company is informed by its tax advisors that it has become a PFIC, or that there is a likelihood of the Company being classified as a PFIC for any taxable year, the Company shall promptly notify the Purchaser in writing of such status or risk, as the case may be. In connection with a “Qualified Electing Fund” election made by a Purchaser or any of a Purchaser’s Partners pursuant to Section 1295 of the Code or a “Protective Statement” filed by such Purchaser or any of such Purchaser’s Partners pursuant to Treasury Regulation Section 1.1295-3, as amended (or any successor thereto), the Company shall provide annual financial information to the Purchaser in a form reasonably requested by Purchaser as soon as reasonably practicable following the end of each taxable year of the Company (but in no event later than 90 days following the end of each such taxable year), and shall provide the Purchaser with access to such other Company information as may be required for purposes of filing U.S. federal income tax returns in connection with such Qualified Electing Fund election or Protective Statement.

 

(r)                                    Acknowledgment Regarding Purchaser’s Purchase of Securities.  The Company acknowledges and agrees that the Purchaser is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Agreements and the transactions contemplated thereby.  The Company further acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Agreements and the transactions contemplated thereby and any advice given by the Purchaser or any of its Representatives or agents in connection with the Transaction Agreements and the transactions contemplated thereby is merely incidental to the Purchaser’s purchase of the Subscription Shares.

 

(s)                                   Private Placement.  Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Subscription Shares by the Company to the Purchaser as contemplated hereby.

 

(t)                                    No General Solicitation.  Neither the Company nor any Person acting on behalf of the Company has offered or sold any of the Subscription Shares by any form of general solicitation or general advertising.  The Company has offered the Subscription Shares for sale only to the Purchaser.

 

(u)                                 No Disqualification Events.  With respect to the Subscription Shares to be offered and sold hereunder in reliance on Rule 506 under the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e).

 

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(v)                                 Notice of Disqualification Events.  The Company will notify the Purchaser in writing, prior to the Closing Date of (i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, reasonably be expected to become a Disqualification Event relating to any Issuer Covered Person, in each case of which it is aware.

 

Section 3.2                                    Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants to the Company, as of the date hereof and as of the Closing, that:

 

(a)                                 Due Formation. The Purchaser is duly formed, validly existing and in good standing in the jurisdiction of its organization. The Purchaser has all requisite power and authority to carry on its business as it is currently being conducted.

 

(b)                                 Authority. The Purchaser has full power and authority to enter into, execute and deliver the Transaction Agreements to which it is or is to become a party and each other agreement, certificate, document and instrument to be executed and delivered by the Purchaser pursuant to each such Transaction Agreement and to perform its obligations hereunder and thereunder and consummate the transactions contemplated hereby or thereby. The execution and delivery by the Purchaser or of each Transaction Agreement to which it is or is to become a party and the performance by the Purchaser of its obligations hereunder and thereunder have been duly authorized by all requisite actions on its part.

 

(c)                                  Valid Agreement. This Agreement has been, and each other Transaction Agreement to which the Purchaser is or is to become a party will be, duly executed and delivered by the Purchaser and constitutes (or, when executed and delivered in accordance therewith will constitute), the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other Applicable Laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by Applicable Laws relating to the availability of specific performance, injunctive relief, or other equitable remedies or general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or Applicable Law).

 

(d)                                 Non-contravention. None of the execution and the delivery of this Agreement or any other Transaction Agreement, nor the consummation of the transactions contemplated hereby or thereby, by the Purchaser will (i) violate any provision of the organizational documents of the Purchaser or violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any Governmental Entity to which the Purchaser is subject, or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of or creation of a Lien under, or create in any party the right to accelerate, terminate, modify, or cancel, any material Contract to which the Purchaser is a party or by which the Purchaser is bound or to which the Purchaser’s assets are subject. There is no action, suit or proceeding, pending or, to the knowledge of the Purchaser, threatened against the Purchaser that questions the validity of any Transaction Agreement or the right of the Purchaser to enter into any Transaction Agreement to which the Purchaser is or is to become a party or to consummate the transactions contemplated hereby or thereby.

 

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(e)                                  Consents and Approvals. None of the execution and delivery by the Purchaser of this Agreement and the other Transaction Agreements to which the Purchaser is or is to become a Party, nor the consummation of any of the transactions contemplated hereby or thereby, nor the performance by the Purchaser of this Agreement or any such Transaction Agreements in accordance with their respective terms requires the Approval, order or authorization of, or registration with, or the giving notice to, any Governmental Entity or any third party, except such as have been or will have been obtained, made or given on or prior to the Closing.

 

(f)                                   Status and Investment Intent.

 

(i)                                     Experience. The Purchaser has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Subscription Shares. The Purchaser is capable of bearing the economic risks of such investment, including a complete loss of its investment.

 

(ii)                                  Purchase Entirely for Own Account. The Purchaser is acquiring the Subscription Shares that it is purchasing pursuant to this Agreement for its own account for investment purpose only and not with the view to, or with any intention of, resale, distribution or other disposition thereof. The Purchaser does not have any direct or indirect arrangement, or understanding with any other Persons to distribute, or regarding the distribution of the Subscription Shares in violation of the Securities Act or any other applicable state securities law.

 

(iii)                               Solicitation. The Purchaser was not identified or contacted through the marketing of the transactions contemplated by this Agreement. The Purchaser did not contact the Company as a result of any general solicitation or directed selling efforts. The purchase of the Subscription Shares by the Purchaser was not solicited by or through anyone other than the Company.

 

(iv)                              Restricted Securities. The Purchaser acknowledges that the Subscription Shares are “restricted securities” that have not been registered under the Securities Act or any applicable state securities law. The Purchaser further acknowledges that, absent an effective registration under the Securities Act, the Subscription Shares may only be offered, sold or otherwise transferred (x) to the Company, (y) outside the United States in accordance with Rule 904 of Regulation S under the Securities Act or (z) pursuant to an exemption from registration under the Securities Act.

 

(v)                                 Status. The Purchaser is an “accredited investor” within the meaning of SEC Rule 501 of Regulation D, as presently in effect, under the Securities Act.

 

17

 

(vi)                              FINRA. The Purchaser does not, directly or indirectly, own more than five percent (5%) of the outstanding common stock (or other voting securities) of any member of the Financial Industry Regulatory Authority, Inc. (“FINRA”) or a holding company for a FINRA member, and is not otherwise a “restricted person” for the purposes of the Free-Riding and Withholding Interpretation of FINRA.

 

(g)                                  Brokers. The Purchaser has not dealt with any broker, finder, commission agent, placement agent or arranger in connection with any transactions contemplated under any Transaction Agreements, and the Purchaser is not under or subject to any obligation to pay any broker’s fee or commission in connection with any transactions contemplated under any Transaction Agreements.

 

ARTICLE IV

 

COVENANTS

 

Section 4.1                                    Post-Closing Obligations. Subject to the terms and conditions of this Agreement, the Company and the Purchaser will, and cause their respective Subsidiaries and Affiliates to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary to consummate the transactions contemplated by this Agreement and the other Transaction Agreements. On and after the Closing Date, and subject to the provisions of this Agreement, the Company and the Purchaser agree to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions as may be reasonably necessary or desirable in order to implement the transactions contemplated by this Agreement and the other Transaction Agreements.

 

Section 4.2                                    Securities Law Filings. The Purchaser and the Company shall timely file all forms, reports and documents required to be filed by each with the SEC (including, if necessary, filing any required statements of beneficial ownership on Schedule 13D or Schedule 13G and such filings as may be required under Section 16 of the Exchange Act) as a result of the issuance of the Subscription Shares, provided that each Party shall provide the other with reasonable chance to review the relevant documents prior to the filing.

 

Section 4.3                                    Distribution Compliance Period. The Purchaser agrees not to resell, pledge or transfer any Subscription Shares within the United States or to any U.S. Person, as each of those terms is defined in Regulation S, during the 40 days following the Closing.

 

Section 4.4                                    Compliance with Transaction Agreements. The Purchaser hereby covenants and agrees with the Company to cause each covenant and agreement of any of its Affiliates party to each of the Transaction Agreements to be fully performed, satisfied and discharged, as if such covenants and agreements were set forth herein and repeated by the Purchaser hereunder as a primary obligor. The Company hereby covenants and agrees with the Purchaser to cause each covenant and agreement of any of its Affiliates party to each of the Transaction Agreements to be fully performed, satisfied and discharged, as if such covenants and agreements were set forth herein and repeated by the Company hereunder as a primary obligor.

 

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ARTICLE V

 

INDEMNIFICATION

 

Section 5.1                                    Indemnification. The Parties hereby agree to the provisions set forth in Schedule 1, which is incorporated hereby into this Agreement.

 

ARTICLE VI

 

MISCELLANEOUS

 

Section 6.1                                    Survival of the Representations and Warranties. All representations and warranties made by any Party hereunder and in each other Transaction Agreement shall expire on the date that is eighteen (18) months after the Closing, except as to any claims hereunder and thereunder which have been asserted in writing pursuant to Section 1 of Schedule 1 against the Party making such representations and warranties on or prior to such applicable expiration date and the relevant party’s Fundamental Representations, each of which shall survive until the expiration of the applicable statute of limitations.

 

Section 6.2                                    Governing Law; Arbitration. This Agreement shall be governed and interpreted in accordance with the laws of New York State, U.S. Any dispute arising out of or relating to this Agreement, including any question regarding its existence, construction, interpretation, validity, termination or implementation (“Dispute”) shall be referred to and finally resolved by arbitration at the Hong Kong International Arbitration Centre in accordance with the Hong Kong International Arbitration Centre Administered Arbitration Rules then in force. There shall be three arbitrators. The Company shall have the right to appoint one arbitrator, the Purchaser shall have the right to appoint one arbitrator, and the third arbitrator shall be appointed by the Hong Kong International Arbitration Centre. The law of this arbitration clause shall be New York law. The seat of arbitration shall be in Hong Kong. The arbitration proceedings shall be conducted in English. Each of the Parties irrevocably waives any immunity to jurisdiction to which it may be entitled or become entitled (including without limitation sovereign immunity, immunity to pre-award attachment, post-award attachment or otherwise) in any arbitration proceedings and/or enforcement proceedings against it arising out of or based on this Agreement or the transactions contemplated hereby. Notwithstanding the foregoing, either Party may seek immediate injunctive relief or other interim relief from any court of competent jurisdiction as necessary to enforce the provisions of this Agreement.

 

Section 6.3                                    Third Party Beneficiaries. This Agreement shall be binding upon and inure solely to the benefit of the Parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, except as set forth in Schedule 1 with respect to Indemnified Parties (as defined therein) or as expressly provided otherwise in this Agreement.

 

Section 6.4                                    Amendment. This Agreement shall not be amended, changed or modified, except by another agreement in writing executed by the Parties hereto.

 

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Section 6.5                                    Binding Effect. This Agreement shall inure to the benefit of, and be binding upon, each of the Parties and their respective heirs, successors and permitted assigns and legal representatives.

 

Section 6.6                                    Assignment. Neither this Agreement nor any of the rights, duties or obligations hereunder may be assigned by any Party without the express written consent of the other Parties. Any purported assignment in violation of the foregoing sentence shall be null and void.

 

Section 6.7                                    Notices. All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly given to the Party at the address set forth below (a) if in writing and served by personal delivery upon the Party for whom it is intended, on the date of such delivery; (b) if delivered by certified mail, registered mail or courier service, return-receipt received, on the date of such delivery; or (c) if delivered by email, upon confirmation of receipt by a non-automated response:

 

	
If to the Company, at:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
21/F, Building A, No.18 Kechuang 11th Street,
   Yizhuang Economic and Technological Development
   Zone, Daxing District, Beijing 101111, PRC
    	
 
    
	
Attn.:
    	
Juexi Liu, Legal Department (Mergers and   Acquisitions
   Group)
    	
 
    
	
E-mail:
    	
Jessie.liu@jd.com; legalnotice@jd.com
    	
 
    
	
 
    	
 
    	
 
    
	
With a copy to   (which shall not constitute notice):
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Skadden, Arps, Slate, Meagher & Flom LLP
    	
 
    
	
 
    	
 
    	
c/o 42/F, Edinburgh Tower, The Landmark
    	
 
    
	
 
    	
 
    	
15 Queen’s Road Central
    	
 
    
	
 
    	
 
    	
Hong Kong
    	
 
    
	
 
    	
 
    	
Attn: Z. Julie Gao
    	
 
    
	
 
    	
 
    	
Email: julie.gao@skadden.com
    	
 
    
	
 
    	
 
    	
Facsimile No.: +852 3910 4863
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
If to the Purchaser, at:
    	
 
    	
Google LLC
    	
 
    
	
 
    	
 
    	
1600 Amphitheatre Parkway
    	
 
    
	
 
    	
 
    	
Mountain View, CA 94043
    	
 
    
	
 
    	
 
    	
Attn: Sanjay Kapoor, VP, Corporate
   Development; and Tim Reusing, Director,
   Legal
    	
 
    
	
 
    	
 
    	
Email: investments-notice@google.com
    	
 
    
	
 
    	
 
    	
Telephone No.: 650-253-0000
    	
 
    
	
 
    	
 
    	
Facsimile No.: (650) 877-1790
    	
 
    

 

20

 

	
 
    	
With a copy   (which shall not constitute notice) to:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Hogan Lovells US   LLP
    	
 
    	
 
    
	
 
    	
 
    	
875 Third Avenue
    	
 
    	
 
    
	
 
    	
 
    	
New York, NY   10022
    	
 
    	
 
    
	
 
    	
 
    	
Attn: Alexander   B. Johnson, Mahvesh A. Qureshi
    	
 
    	
 
    
	
 
    	
 
    	
Email: alex.johnson@hoganlovells.com; mahvesh.qureshi@hoganlovells.com
    	
 
    	
 
    
	
 
    	
 
    	
Telephone No.:   (212) 918-3030; (202) 637-3677
    	
 
    	
 
    
	
 
    	
 
    	
Facsimile No.:   (212) 918-3100
    	
 
    	
 
    

 

Any Party may change its address for purposes of this Section 6.7 by giving the other Parties hereto written notice of the new address in the manner set forth above.

 

Section 6.8                                    Entire Agreement. This Agreement and the other Transaction Agreements (together with the schedules and exhibits hereto and thereto) together constitute the entire understanding and agreement between the Parties with respect to the matters covered hereby and thereby, and all prior agreements and understandings, oral or in writing, if any, between the Parties with respect to the matters covered hereby and thereby are superseded by this Agreement and the other Transaction Agreements.

 

Section 6.9                                    Severability. If any provisions of this Agreement shall be adjudicated to be illegal, invalid or unenforceable in any action or proceeding whether in its entirety or in any portion, then such provision shall be deemed amended, if possible, or deleted, as the case may be, from the Agreement in order to render the remainder of the Agreement and any provision thereof both valid and enforceable, and all other provisions hereof shall be given effect separately therefrom and shall not be affected thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such a determination, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

 

Section 6.10                             Fees and Expenses. Except as otherwise provided in this Agreement or any other Transaction Agreements, the Parties will bear their respective expenses incurred in connection with the negotiation, preparation and execution of this Agreement and the other Transaction Agreements and the transactions contemplated hereby and thereby, including fees and expenses of attorneys, accountants, consultants and financial advisors.

 

21

 

Section 6.11                             Confidentiality.

 

(a)                                 Each Party shall, and shall cause its Affiliates to, keep confidential any non-public material or information with respect to this Agreement and the other Transaction Agreements, any of the terms and conditions of, and the status or other facts with respect to, this Agreement and the other Transaction Agreements and the transactions contemplated hereby and thereby, including the existence of this agreement and the other Transaction Agreements (including written or non-written information, hereinafter the “Confidential Information”). Confidential Information shall not include any information that is (a) previously known on a non-confidential basis by the receiving Party, (b) in the public domain through no fault of such receiving Party, its Affiliates or its or its Affiliates’ officers, directors or employees, (c) received from a party other than the Parties or their Affiliates, representatives or agents, so long as such party was not, to the knowledge of the receiving Party, subject to a duty of confidentiality to such Party or Affiliates or (d) developed independently by the receiving Party without reference to confidential information of the disclosing Party. No Party shall disclose such Confidential Information to any third Party. Either Party may use the Confidential Information only for the purpose of, and to the extent necessary for performing this Agreement and shall not use such Confidential Information for any other purposes.

 

(b)                                 Notwithstanding any other provisions in this Section 6.11, if any Party believes in good faith that any announcement or notice must be prepared or published pursuant to Applicable Laws (including any rules or regulations of any relevant securities exchange or valid legal process) or information is otherwise required to be disclosed to any Governmental Entity, such Party may, in accordance with its understanding of the Applicable Laws, make the required disclosure in the manner it deems in compliance with the requirements of Applicable Laws, rules or regulations; provided that, the Party who is required to make such disclosure shall, to the extent permitted by Applicable Law and so far as it is reasonably practicable, provide the other Parties with prompt notice of such requirement and reasonably cooperate with the other Parties at such other Parties’ request and at the requesting Party’s cost, to enable such other Parties to seek an appropriate protection order or remedy. In addition, each Party may disclose, after giving prior notice to the other Parties to the extent reasonably practicable under the circumstances and subject to any practicable arrangements to protect confidentiality, Confidential Information to the extent required under judicial or regulatory process or in connection with any judicial process regarding any legal action, suit or proceeding arising out of or relating to this Agreement or any other Transaction Agreement; provided that, the Party who is required to make such disclosure shall, to the extent permitted by Applicable Law and so far as it is reasonably practicable, at the other Parties’ request and at the requesting Party’s cost, reasonably cooperate with the other Parties to enable such other Parties to seek an appropriate protection order or remedy.

 

(c)                                  Each Party may disclose the Confidential Information only to its Affiliates and its and its Affiliates’ officers, directors, employees, agents and representatives on a need-to-know basis in the performance of the Transaction Agreements; provided that, such Party shall ensure such Persons strictly abide by the confidentiality obligations hereunder.

 

(d)                                 The confidentiality obligations of each Party hereunder shall survive the termination of this Agreement for a period of five (5) years. Each Party shall continue to abide by the confidentiality clause hereof and perform the obligation of confidentiality it undertakes until the other Party approves release of that obligation or until a breach of the confidentiality clause hereof will no longer result in any prejudice to the other Party.

 

Section 6.12                             Specific Performance. The Parties agree that irreparable damage would occur in the event any provision of this Agreement or any other Transaction Agreements were not performed in accordance with the terms hereof or thereof and that the Parties shall be entitled to seek specific performance of the terms hereof or thereof, in addition to any other remedy at law or equity.

 

22

 

Section 6.13                             Headings. The headings of the various articles and sections of this Agreement are inserted merely for the purpose of convenience and do not expressly or by implication limit, define or extend the specific terms of the section so designated.

 

Section 6.14                             Execution in Counterparts. For the convenience of the Parties and to facilitate execution, this Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. Signatures in the form of facsimile or electronically imaged “PDF” shall be deemed to be original signatures for all purposes hereunder.

 

Section 6.15                             Public Disclosure. Without limiting any other provision of this Agreement, the Parties will issue a joint press release mutually agreeable to both Parties with respect to the execution of this Agreement and any other Transaction Agreement and the transactions contemplated hereby and thereby.  Thereafter neither the Company nor the Purchaser, nor any of their respective Affiliates, shall issue any press release or other public announcement or communication (to the extent not previously publicly disclosed or made in accordance with this Agreement or any other Transaction Agreements) with respect to the transactions contemplated hereby or thereby without the prior written consent of the other Party (such consent not to be unreasonably withheld, conditioned or delayed), except to the extent a Party’s counsel deems such disclosure necessary or desirable in order to comply with any Applicable Law or the regulations or policies of any securities exchange or other similar regulatory body (in which case the disclosing Party shall give the other Party prior written notice of any required disclosure to the extent permitted by Applicable Law), shall limit such disclosure to the information such counsel advises is required to comply with such Applicable Law or regulations, and shall consult with the other Party regarding such disclosure and give good faith consideration to any suggested changes to such disclosure from the other Party. Notwithstanding anything to the contrary in this Section 6.15, the Purchaser and the Company may make public statements without the other Party’s consent, so long as any such statements are not materially inconsistent with previous press releases, public disclosures or public statements made by the Company or the Purchaser and do not reveal material, non-public information regarding the other Party or the transactions contemplated by this Agreement.

 

Section 6.16                             Waiver. No waiver of any provision of this Agreement shall be effective unless set forth in a written instrument signed by the Party waiving such provision. No failure or delay by a Party in exercising any right, power or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of the same preclude any further exercise thereof or the exercise of any other right, power or remedy.

 

23

 

Section 6.17                             No Partnership. The relationship between the Parties established by this Agreement and each of the other Transaction Agreements is that of independent contractors, and nothing contained in this Agreement or any of the other Transaction Agreements shall be construed to (i) give any Party the power to direct or control the day-to-day activities of any other Party, or (ii) allow any Party to create or assume any obligation on behalf of the other Party for any purpose whatsoever. The Parties acknowledge and agree the relationship between the Parties does not and will not constitute a partnership (including a limited partnership) or a joint venture by reason of this Agreement, any other Transaction Agreement or otherwise, that no Party is or will be, by reason of this Agreement, any other Transaction Agreement or otherwise, a partner or joint venturer of the other Party for any purpose, and that this Agreement and each of the other Transaction Agreements shall not be construed to suggest otherwise.

 

[SIGNATURE PAGE FOLLOWS]

 

24

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the day and year first above written.

 

	
 
    	
JD.COM, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Qiangdong   Liu
    
	
 
    	
Name:
    	
Qiangdong Liu
    
	
 
    	
Title:
    	
Chief Executive   Officer
    

 

[Signature Page to Subscription Agreement]

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the day and year first above written.

 

	
 
    	
GOOGLE   LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sundar   Pichai
    
	
 
    	
Name:
    	
Sundar Pichai
    
	
 
    	
Title:
    	
Chief Executive   Officer
    

 

[Signature Page to Subscription Agreement]

 

 

Schedule 1

 

Indemnification

 

Section 1                                              Indemnification

 

(a)                                 From and after the Closing Date, each Party, as applicable (the “Indemnifying Party”), shall indemnify and hold the other Party and its directors, officers, employees, agents, Subsidiaries and Affiliates (collectively, the “Indemnified Party”) harmless from and against any losses, claims, damages, liabilities, judgments, fines, obligations, expenses and liabilities of any kind or nature whatsoever, including but not limited to any investigative, legal and other expenses incurred in connection with, and any amounts paid in settlement of, any pending or threatened legal action or proceeding, and any taxes or levies that may be payable by such person by reason of the indemnification of any indemnifiable loss hereunder (collectively, “Losses”) resulting from or arising out of: (i) the breach of any representation or warranty of the Indemnifying Party or its Subsidiaries or Affiliates contained in the Transaction Agreements or (ii) the violation or nonperformance, partial or total, of any covenant or agreement of the Indemnifying Party or its Subsidiaries or Affiliates contained in the Transaction Agreements.

 

(b)                                 No Indemnifying Party shall be liable for any Loss consisting of punitive damages (except to the extent that such punitive damages are awarded to a third party against an Indemnified Party in connection with a Third Party Claim (as defined below)).

 

(c)                                  No Indemnified Party shall be entitled to recover any Losses, other than with respect to breaches of Fundamental Representations, until such time as the aggregate amount of all such Losses that have been suffered or incurred by any one or more of the Indemnified Parties exceeds $1,500,000 (the “Loss Threshold”), provided, however, that once the aggregate amount of all such Losses exceeds the Loss Threshold, the Indemnifying Party shall be liable for all such Losses (including the Loss Threshold).

 

(d)                                 The maximum aggregate amount of Losses that the Indemnified Parties will be entitled to recover pursuant to this Schedule 1, other than with respect to breaches of any Fundamental Representations or violation or nonperformance of any covenant or agreement, shall be limited to $109,999,994.98.  The maximum aggregate amount of Losses that the Indemnified Parties will be entitled to recover for breaches of Fundamental Representations (inclusive and not in duplication of the amounts recoverable in the preceding sentence) shall be limited to $549,999,974.92.  Notwithstanding the foregoing or anything else to the contrary contained herein, the limitations on indemnification set forth in this Agreement (including, without limitation, the limitations set forth in this Section 1) shall not apply to any claim based on fraud or willful misconduct of the Indemnifying Party or its Subsidiaries or Affiliates.

 

(e)                                  Notwithstanding any other provision in this Agreement, for the purposes of this Section 1, in determining the amount of any Losses suffered by any Indemnified Parties as a result of, arising out or in connection with any such breach, violation, inaccuracy in each such case for which the Indemnifying Party is required to indemnify and hold harmless the Indemnified Parties pursuant to this Schedule 1, all qualifications and limitations in such representations and warranties included in any Transaction Agreement, in each case, with respect to material adverse effect, Material Adverse Effect, materiality, material or similar terms shall be entirely disregarded and will not have any effect.

 

S-1-1

 

(f)                                   The Indemnified Party shall not be entitled to recover from the Indemnifying Party under this Agreement or any other Transaction Agreement more than once in respect of the same Losses suffered.

 

(g)                                  Notwithstanding any other provision contained herein, the remedies contained in this Schedule 1 shall be the sole and exclusive monetary remedy of the Indemnified Parties for any claim arising out of or resulting from this Agreement and the other Transaction Agreements, except that no limitation or exceptions with respect to the obligations or liabilities on either Party provided hereunder shall apply to a Loss incurred by any Indemnified Party arising due to the fraud or fraudulent misrepresentation of the Indemnifying Party or its Subsidiaries or Affiliates. Nothing in this Schedule 1 or elsewhere in this Agreement shall affect any parties’ rights to specific performance or other equitable or non-monetary remedies with respect to the covenants and agreements in this Agreement or any of the other Transaction Agreements or that are to be performed at or after the Closing; provided that for the avoidance of doubt, except in the case of fraud or fraudulent misrepresentation, nothing contained herein shall permit any party to rescind this Agreement or any other Transaction Agreement.

 

(h)                                 The amount of any Losses for which indemnification is provided under this Schedule 1 shall be reduced by (i) any amounts that have been recovered by any Indemnified Party from any third party, and (ii) any insurance proceeds or other cash receipts or source of reimbursement that have been received by any Indemnified Party with respect to such Losses, in each case, net of any costs of recovery. If any amount to be reduced under this section from any payment required under this Schedule 1 is determined after the date on which the Indemnifying Party has paid such indemnification claim, the Indemnified Party shall reasonably promptly reimburse the Indemnifying Party any amount that the Indemnifying Party would not have had to pay pursuant to this Schedule 1 had such determination been made at the time of such indemnification payment by the Indemnifying Party.

 

(i)                                     Each Indemnified Party shall use commercially reasonable efforts to mitigate the Losses it incurs.

 

Section 2                                              Third Party Claims.

 

(a)                                 If any third party shall notify any Indemnified Party in writing with respect to any matter involving a claim by such third party (a “Third Party Claim”) which such Indemnified Party believes would give rise to a claim for indemnification against the Indemnifying Party under this Schedule 1, then the Indemnified Party shall promptly following receipt of notice of such claim (i) notify the Indemnifying Party thereof in writing and (ii) transmit to the Indemnifying Party a written notice (“Claim Notice”) describing in reasonable detail the nature of the Third Party Claim, a copy of all papers served with respect to such claim (if any), and the basis of the Indemnified Party’s request for indemnification under this Agreement. Notwithstanding the foregoing, no failure, delay or other deficiency in providing such notice shall constitute a waiver or otherwise modify the Indemnified Party’s right to indemnity hereunder, except to the extent that the Indemnifying Party shall have been prejudiced by such failure, delay or deficiency.

 

S-1-2

 

(b)                                 Upon receipt of a Claim Notice with respect to a Third Party Claim, the Indemnifying Party shall have the right, but not the obligation, to assume the defense of any Third Party Claim by, within 30 days of receipt of the Claim Notice, notifying the Indemnified Party in writing that the Indemnifying Party elects to assume the defense of such Third Party Claim, and upon delivery of such notice by the Indemnifying Party, the Indemnifying Party shall have the right to fully control and settle the proceeding, provided, that, any such settlement or compromise shall be permitted hereunder only with the written consent of the Indemnified Party. Notwithstanding the foregoing, the Indemnifying Party shall not be entitled to assume the defense of any Third Party Claim if (i) the Third Party Claim relates to or arises in connection with any criminal action, (ii) the Third Party Claim seeks an injunction or equitable relief against any Indemnified Party (other than immaterial equitable relief in connection with an award of monetary damages), or (iii) the Third Party Claim is or would reasonably be expected to result in Losses in excess of the amounts available for indemnification pursuant to this Agreement. If the Indemnifying Party assumes the defense of a Third Party Claim pursuant to this Section 2(b), the Indemnifying Party shall conduct such defense in good faith.

 

(c)                                  If requested by the Indemnifying Party, the Indemnified Party shall, at the sole cost and expense of the Indemnifying Party, cooperate reasonably with the Indemnifying Party and its counsel in contesting any Third Party Claim which the Indemnifying Party elects to contest, including in connection with the making of any related counterclaim against the person asserting the Third Party Claim or any cross complaint against any person. The Indemnified Party shall have the right to receive copies of all pleadings, notices and communications with respect to any Third Party Claim, other than any privileged communications between the Indemnifying Party and its counsel, and shall be entitled, at its sole cost and expense, to retain separate co-counsel and participate in, but not control, any defense or settlement of any Third Party Claim assumed by the Indemnifying Party pursuant to Section 2(b) above.

 

(d)                                 In the event of a Third Party Claim for which the Indemnifying Party elects not to assume the defense or fails to make such an election within the 30 days of the Claim Notice, the Indemnified Party may, at its option, defend, settle, compromise or pay such action or claim at the expense of the Indemnifying Party; provided that any such settlement or compromise shall be permitted hereunder only with the written consent of the Indemnifying Party, which consent shall not be unreasonably withheld or delayed.

 

Section 3                                              Other Claims.  In the event any Indemnified Party should have a claim against the Indemnifying Party hereunder which does not involve a Third Party Claim, the Indemnified Party shall promptly transmit to the Indemnifying Party a written notice (the “Indemnity Notice”) describing in reasonable detail the nature of the claim, the Indemnified Party’s good faith estimate of the amount of Losses attributable to such claim and the basis of the Indemnified Party’s request for indemnification under this Agreement; provided, that no failure, delay or deficiency in providing such notice shall constitute a waiver or otherwise modify the Indemnified Party’s right to indemnity hereunder, except to the extent that the Indemnifying Party shall have been prejudiced by such failure, delay or deficiency. If the Indemnifying Party does not notify the Indemnified Party within 30 days from its receipt of the Indemnity Notice that the Indemnifying Party disputes such claim, the Indemnifying Party shall be deemed to have accepted and agreed with such claim.

 

S-1-3Exhibit 4.42

 

PRIVATE AND CONFIDENTIAL

	
 
    	
 
    	
 
    

 

JD LOGISTICS PROPERTIES CORE FUND, L.P.

 

 

SUBSCRIPTION AGREEMENT

 

	
 
    	
 
    	
 
    

 

 

DIRECTIONS FOR THE COMPLETION 
 OF THIS SUBSCRIPTION AGREEMENT

 

1.              Introduction

 

This subscription agreement (“Subscription Agreement”) relates to the offering of limited partnership interests (the “Interests”) in JD Logistics Properties Core Fund, L.P. (the “Fund”).  This Subscription Agreement contains all of the materials necessary (and, in the case of Form W-9 and Form W-8, where to find such forms) for all prospective investors to subscribe for an Interest in the Fund.  For purposes of this Subscription Agreement, the “Purchaser” is the person or entity for whose account the Interests are being purchased.  Another person or entity with investment authority may execute this Subscription Agreement on behalf of the Purchaser, but should indicate the capacity in which it is doing so and the name of the Purchaser.  Prior to completing such materials, the Purchaser should read all sections, paragraphs and appendices of this Subscription Agreement and the Amended and Restated Exempted Limited Partnership Agreement of the Fund (as may be amended and restated from time to time, the “Partnership Agreement”).  All capitalized terms used but not otherwise defined herein shall have the meanings given to such terms by the Partnership Agreement.

 

2.              Execution

 

Subscriptions may be made only by written application using this Subscription Agreement.  The General Partner reserves the right to reject subscriptions, in whole or in part.

 

Please complete and execute this Subscription Agreement and the appendices as follows:

 

·                                          Subscription Agreement

 

·                                          Please complete the information on page 1 of the Subscription Agreement as to whether the Purchaser is or is not a U.S. Person.

 

·                                          Please fill out, date and sign on the appropriate section of the signature page.  Please enter the date that the Purchaser executed the Subscription Agreement.

 

Please note that this Subscription Agreement must be entered into as a deed pursuant to the laws of the Cayman Islands.  For companies, this typically requires signature by a director or the company secretary in the presence of a witness who shall attest this Subscription Agreement.  For individuals, this typically requires signature in the presence of a witness who must also sign his or her own name.  Purchasers that are not corporations or individuals should execute this Subscription Agreement in the manner prescribed by the laws of the jurisdiction of their incorporation or residence.

 

·                                          Appendix A. Purchaser Questionnaire

 

·                                          All Purchasers should complete the relevant portions of Part I of Appendix A.

 

·                                          Please answer all questions in Parts II, III and IV of Appendix A.  If the Purchaser believes that certain questions in Part III are not applicable, please fill out “N/A” as answers to such questions.

 

i

 

·                                          All Purchasers who may potentially hold 20% or more in Interests in the Fund should complete Part V of Appendix A, and Purchasers should contact the General Partner if they are not certain whether they should be completing Part V of Appendix A.

 

·                                          Each Purchaser who is a Hong Kong Investor (as defined herein) and/or indirectly owned by one or more Hong Kong Investor should complete Part VI of Appendix A.

 

·                                          Appendix B. Anti-Money Laundering Information and Evidence of Authorization1

 

·                                          All Purchasers need to submit satisfactory evidence of authorization (i.e. board minutes pursuant to Sections B.11, C.3, D.7, E.4 or F.3 of Appendix B, as applicable).

 

·                                          All Purchasers will need to submit the applicable anti-money laundering documentation outlined in Appendix B (see point 4 below).

 

·                                          Appendix C. Certain Investment, Regulatory, Tax and Other Considerations; Notices to Certain Investors

 

·                                          All Purchasers must read and be informed of the risk factors and potential conflicts of interest, as well as the regulatory, tax and other considerations regarding the Fund and an investment therein as set out in Appendix C.  Purchasers should also read the applicable notices to certain investors set out in Appendix C.

 

·                                          Appendix D. Privacy Notice and Practices (for natural persons and certain entities that are “alter egos” of natural persons only)

 

·                                          All Purchasers who are natural persons or certain entities that are essentially “alter egos” of natural persons (e.g., revocable grantor trusts, individual retirement accounts or certain estate planning vehicles) should read the privacy notice and practices set out in Appendix D, which explains the manner in which the General Partner and its Affiliates collect and maintain non-public personal information about the applicable Purchaser.

 

·                                          Appendix E. Individual Self-Certification Form

 

·                                          All Purchasers who are individuals should complete the relevant portions of Appendix E, if applicable.

 

·                                          Appendix F. Entity Self-Certification Form

 

·                                          All Purchasers that are entities should complete the relevant portions of Appendix F, if applicable.

 

·                                          Appendix G. Reverse Solicitation Letter

 

·                                          All Purchasers should complete and sign Appendix G.

 

1  Per Section 4, Purchaser may either comply with the Bank Account Requirements (as defined herein) or provide the documents requested under Appendix B.

 

ii

 

If this Subscription Agreement, or any document submitted as part of the Purchaser’s application, is executed for the Purchaser by its attorney, a copy of the relevant power of attorney must be submitted with the Purchaser’s Subscription Agreement.

 

3.              Taxpayer Identification Number and Certificate

 

The Purchaser must fully and accurately complete and deliver to the Fund an Internal Revenue Service (“IRS”) Form W-9 (for Purchasers who are U.S. Persons for U.S. Tax Purposes2), or successor form thereto (“Form W-9”) or Form W-8 BEN (or other applicable version of Form W-8) (for persons other than U.S. Persons for U.S. Tax Purposes), or successor form thereto (“Form W-8”), available at the IRS website at www.irs.gov, in accordance with the instructions to such forms.  This is necessary for the Fund to comply with its tax filing obligations and to establish that the Purchaser is not subject to certain U.S. withholding taxes. The Purchaser must also fully and accurately complete and deliver to the Fund the Individual Self-Certification Form in Appendix E or Entity Self-Certification Form in Appendix F (as applicable).  Failure to include a properly completed and executed tax form may result in amounts being withheld for taxes at the maximum applicable rates when a lower rate might have applied if the appropriate tax form had been included.

 

4.              Anti-Money Laundering Information and Evidence of Authorization

 

The General Partner is required to comply with relevant anti-money laundering regulations in relation to the admission of the Purchaser to the Fund.  Purchasers must also provide the satisfactory evidence of authorization and anti-money laundering documentation outlined in Appendix B.  The Purchaser will not be admitted into the Fund unless and until all relevant information (which may be more extensive than is indicated in Appendix B) has been received.

 

5.              Completed Subscription Agreement

 

A properly completed and signed copy of this Subscription Agreement must be submitted to the General Partner by electronic mail at legalnotice@jd.com, with a copy being sent to Jun Fu of the Fund at fujun3@jd.com and Mengqi Zhang of Skadden, Arps, Slate, Meagher & Flom LLP at Mengqi.Zhang@skadden.com.

 

The original completed and executed Subscription Agreement and all related documents shall be sent to Jessie Liu at the address shown within one month of the closing applicable to the Purchaser:

 

Legal Department (M&A team), 21/F, Building A, No.18 Kechuang 11th Street, Yizhuang Economic and Technological Development Zone, Daxing District, Beijing 101111, PRC

 

Attn.: Jessie Liu (刘觉西)  E-mail:  legalnotice@jd.com

 

If you have any queries in relation to the completion of this Subscription Agreement, please contact Mengqi Zhang of Skadden, Arps, Slate, Meagher & Flom LLP (tel: +852-3740-4787; email: Mengqi Zhang@skadden.com).

 

2  For purposes of this paragraph, “U.S. Person for U.S. Tax Purposes” shall have the meaning set forth in Appendix A-1.

 

iii

 

SUBSCRIPTION AGREEMENT

 

JD LOGISTICS PROPERTIES CORE FUND

 

JD Logistics Properties Core Fund GP Ltd.

Vistra (Cayman) Limited, P. O. Box 31119

Grand Pavilion, Hibiscus Way, 802 West Bay Road,

Grand Cayman, KY1 — 1205, Cayman Islands

 

Ladies and Gentlemen:

 

The undersigned (the “Purchaser”)1 hereby agrees to irrevocably and unconditionally subscribe for and purchase from JD Logistics Properties Core Fund, L.P., a Cayman Islands exempted limited partnership (the “Fund”), a non-redeemable participating interest as a limited partner in the Fund (an “Interest”) in the amount set forth opposite the Purchaser’s signature on the signature page(s) at the end of this Subscription Agreement (the “Subscription Amount,” and upon acceptance by the General Partner, the Purchaser’s “Commitment”), based on the Amended and Restated Exempted Limited Partnership Agreement of the Fund (as may be amended and restated from time to time, the “Partnership Agreement”) and the Side Letter entered into between the General Partner and the Purchaser in connection with the Purchaser’s subscription of the Fund’s Interest (as may be amended or modified from time to time, the “Purchaser’s Side Letter”).  The Purchaser further acknowledges that its subscription (i) is conditioned upon acceptance by JD Logistics Properties Core Fund GP Ltd. (the “General Partner”) acting on behalf of the Fund and (ii) may be accepted or rejected in whole or in part by the General Partner in its sole discretion.  The Purchaser agrees to be bound by all the terms and provisions of the Partnership Agreement, upon its admission as a limited partner of the Fund (a “Limited Partner”).  Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Partnership Agreement.  References herein to the Fund taking a certain action shall mean, wherever the context requires, the General Partner taking such action (in its capacity as such) on behalf of the Fund.

 

To induce the General Partner to accept this subscription, the Purchaser acknowledges and agrees as follows:

 

1.             The Purchaser hereby represents and warrants that: (Please tick as appropriate):

 

o                 the Purchaser is not a U.S. Person2 and it hereby declares, represents and warrants to the General Partner, the Fund and the Advisor the terms as set out in Section 9; or

 

o                 the Purchaser is a U.S. Person.

 

1  In the case of a subscription for the account of a trust or other entity, “Purchaser” shall refer to the trustee, fiduciary or representative making the investment decision and executing this Subscription Agreement, or the trust or other entity, or both, as appropriate.

 

2   For purposes hereof, “U.S. Person” shall have the meaning set forth in Appendix A-1.

 

1

 

2.                                      The Purchaser agrees that the acceptance by the General Partner of this Subscription Agreement shall constitute the General Partner’s agreement to admit the Purchaser as a Limited Partner on the terms of the Partnership Agreement as if the Purchaser was a party to such agreement and, in this regard, the Purchaser hereby appoints the General Partner (or the successor thereof) as general partner of the Fund and further appoints each of the General Partner (or successor thereof) and its officers, with full power of substitution, as its true and lawful representative and attorney-in-fact and agent of the Purchaser, (a) to receive and pay over to the Fund, on behalf of the Purchaser, to the extent set forth in this Subscription Agreement, all funds received hereunder; (b) to complete or correct, on behalf of the Purchaser, all documents to be executed by the Purchaser in connection with its subscription for the Interest, including, without limitation, filling in or amending amounts, dates, and other pertinent information; and (c) to execute, acknowledge, verify, swear to, deliver, record and file, in the Purchaser’s name, place and stead and on its behalf, (i) the Partnership Agreement, any counterparts of the Partnership Agreement to be entered into pursuant to this Subscription Agreement and any amendments to which the Purchaser is a signatory (to the extent such amendments are authorized pursuant to the terms of Partnership Agreement or otherwise authorized by the Purchaser); (ii) any amendments to any such amendments (as duly adopted pursuant to the Partnership Agreement); (iii) any agreements or other documents relating to the obligations of the Fund, as limited and defined in the Partnership Agreement; (iv) any certificates of limited partnership required by law and all amendments thereto; (v) any certificates or other instruments which may be required to effectuate any change in the membership of the Fund pursuant to the Partnership Agreement; (vi) all assignments, conveyances or other instruments or documents necessary to effect the winding up or dissolution of the Fund in accordance with the Partnership Agreement; (vii) all other filings with any governmental agencies of the Cayman Islands or any other jurisdiction, which the General Partner considers necessary to carry out the purposes of this Subscription Agreement, the Partnership Agreement and the business of the Fund; and (viii) such other matters as permitted under the Partnership Agreement pursuant to the power of attorney clause granted therein. The power of attorney granted hereby is intended to secure an interest in property and, in addition, the obligations of the Purchaser under this Subscription Agreement. The Purchaser acknowledges and agrees that the Partnership Agreement also grants further powers of attorney to the General Partner.  The Purchaser further confirms and ratifies the execution of the Partnership Agreement by the General Partner on its behalf.

 

3.                                      Subject to the terms of the Partnership Agreement, the Purchaser’s Side letter and this Subscription Agreement, the Purchaser’s obligation to pay for the Interest being purchased by the Purchaser hereunder shall be unconditional, complete and binding upon the acceptance of this Subscription Agreement by the General Partner; provided that for the convenience of the Fund, the Purchaser’s Commitment shall be payable in installments.

 

4.                                      The Purchaser acknowledges that the Fund has entered into or expects to enter into separate subscription agreements (the “Other Subscription Agreements”) with the other purchasers of Interests (the “Other Purchasers”) providing for the sale to the Other Purchasers of Interests and the admission of the Other Purchasers as Limited Partners.  The Purchaser further agrees and acknowledges that this Subscription Agreement and the Other Subscription Agreements are separate agreements, and the sales of Interests to the Purchaser and the Other Purchasers are separate sales.

 

5.                                      The Fund, the General Partner, the Advisor and their respective legal counsel(s), agents, delegates and representatives (together, the “Indemnified Persons”) may rely on the undertakings, representations, warranties and acknowledgements set out in this Subscription Agreement and information provided herein (including the questionnaire attached hereto) and, to the fullest extent permitted by applicable law, the Purchaser hereby agrees to indemnify and hold harmless each of the Indemnified Persons from and against all claims, liabilities, demands, losses, damages, costs and expenses whatsoever or howsoever arising as a result of, or in connection with, (i) any breach by the Purchaser of such undertakings, representations, warranties or acknowledgements, including in connection with the questionnaire attached hereto, or in any other document provided by the Purchaser to the Fund or in any agreement (other than the Partnership Agreement) executed by the Purchaser with the Fund or the General Partner in connection with the Purchaser’s investment in the Interests and (ii) the Purchaser’s failure to disclose any relevant details or to provide the General Partner with all the information required by it to fulfil the General Partner’s responsibility for the prevention of money laundering.  The Purchaser shall promptly notify the General Partner in writing if at any time during the term of the Fund, the Purchaser shall no longer be in compliance with the undertakings, representations, warranties or acknowledgements contained herein.  The Purchaser understands that a misrepresentation of any  warranty or agreement made by the Purchaser in this Subscription Agreement and/or the Partnership Agreement could subject the Fund to significant damages.

 

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6.                                      If at any time the General Partner reasonably believes that there has been any breach of any of such undertakings, representations, warranties or acknowledgements set out in this Subscription Agreement by the Purchaser, as a result of which the Fund or any member of the Sponsor Group, as applicable:

 

6.1                               has or is likely to become required to be registered as an investment company as defined under the Investment Company Act, including the rules and regulations promulgated thereunder;

 

6.2                               is or is likely to be in breach of the Securities Act, including the rules promulgated thereunder, the Partnership Law or any other securities legislation;

 

6.3                               is or is likely to be required to register the Interests pursuant to Section 12(g) of the Exchange Act, including the rules promulgated thereunder, the Securities Act or the laws of any U.S. state or other jurisdiction;

 

6.4                               shall be subject to additional fiduciary duties in relation to the Fund and its assets than may be required under the Partnership Law by virtue of the Purchaser’s Interest;

 

6.5                               is or is likely to be in breach of any material law, rule or regulation of any jurisdiction applicable to the Fund;

 

6.6                               will be, or likely will be, unable to (i) comply with (a) sections 1471 to 1474 of the Code and any associated legislation, regulations or guidance, and any other similar legislation, regulations or guidance enacted in any other jurisdiction which seeks to implement similar tax reporting and/or withholding tax regimes; (b) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters — the Common Reporting Standard (“CRS”) and any associated guidance; (c) any intergovernmental agreement, treaty, regulation, guidance, standard or any other agreement between the Cayman Islands (or any Cayman Islands government body) and the United States or any other jurisdiction (including any government bodies in such jurisdiction), entered into in order to comply with, facilitate, supplement or implement the legislation, regulations or guidance or standards described in clauses (a) and (b); and (d) any legislation, regulations or guidance in the Cayman Islands that give effect to the matters outlined in the preceding clauses (a) through (c) (collectively, “FATCA”); (ii) satisfy any information reporting requirements imposed by FATCA; or (iii) satisfy any requirements necessary to avoid withholding taxes under FATCA with respect to any payments to be received or made by the Fund; or

 

6.7                               has or is likely to become required to be registered as an investment adviser under the  Investment Advisers Act, including the rules promulgated thereunder; then the Purchaser shall, as soon as reasonably practicable upon receipt of written notice of the same from the General Partner, take such action reasonably necessary for (and required by) the General Partner to ensure that none of the other Partners or the Fund are adversely affected by the foregoing.

 

7.                                      Representations, Warranties and Covenants.  The Purchaser further represents, warrants and covenants (as applicable) to the Fund and the General Partner as of the date that this Subscription Agreement is signed by the Purchaser, as of each date on which the Purchaser’s Subscription Amount is admitted to the Fund as specified below (as and to the extent specified below) that:

 

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7.1                               Single Legal Entity.  Unless otherwise disclosed to the General Partner in writing, the Purchaser is a single legal entity and will, as a result, be regarded as a single legal entity in the Fund and the sole beneficial and record owner of the Interests under the Securities Act, the Investment Company Act, the Exchange Act and the laws of the jurisdictions in which the Purchaser is constituted.

 

7.2                               Purchase for Investment.  The Purchaser is not acquiring the Interest with a view to or for sale in connection with any distribution of all or any part of such Interest and that the Purchaser has no present intention of selling, granting participation in, or otherwise distributing the same.  The Purchaser will not, directly or indirectly, Transfer all or any part of such Interest (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of all or any part of such Interest) except in accordance with the terms of the Partnership Agreement.  The Purchaser further represents that the Purchaser does not have any contract, undertaking, agreement, or arrangement with any person to transfer the Interests to any third party. The Purchaser understands that the Purchaser must bear the economic risk of the Purchaser’s investment in an Interest for an indefinite period of time because, among other reasons, the Interests generally cannot be sold other than through a privately negotiated transaction.

 

7.3                               Evaluation of and Ability to Bear Risks.  The Purchaser has such knowledge and experience in financial and business affairs that the Purchaser is capable of evaluating the merits and risks of purchasing, and other considerations relating to, the Interest to be purchased by the Purchaser pursuant to this Subscription Agreement, and the Purchaser has not relied in connection with the Purchaser’s purchase of an Interest upon any representations, warranties or agreements other than those set forth in this Subscription Agreement, the Partnership Agreement and the Purchaser’s Side letter. The Purchaser has evaluated the risks involved in investing in the Interest and has determined that the Interest is a suitable investment for the Purchaser. The aggregate amount of the investments the Purchaser has in, and the Purchaser’s commitments to, all similar investments that are illiquid is reasonable in relation to the Purchaser’s net worth, both before and after the subscription for and purchase of the Interest pursuant to this Subscription Agreement. The Purchaser’s financial situation is such that the Purchaser can afford to bear the economic risk of holding the Interest for an indefinite period of time, and the Purchaser can afford to suffer the complete loss of the Purchaser’s Interest and Commitment.

 

7.4                               Risk Factors and Conflicts of Interest.  The Purchaser has carefully read and understands the items described under “Risk Factors” section and “Certain Investment Structuring, Legal, Tax and Other Considerations” section, including “Conflicts of Interest”, set forth in Appendix C, and the manner in which profits and losses will be distributed in accordance with the Partnership Agreement.  The Purchaser confirms that (i) it is aware that an investment in the Fund involves substantial risks and has determined that an investment in an Interest is a suitable investment for it, and (ii) it has such knowledge and experience in financial and business matters as to be capable of evaluating the merits of, and it is able to bear the economic risk of (including a complete loss thereto), its investment in the Fund.

 

7.5                               Compliance with Laws.  The Purchaser is in compliance with the legal requirements applicable to it in the jurisdiction in which it was established and/or is resident and the Interest has not been offered or promoted to it in violation of any securities laws applicable to it. The execution and delivery of this Subscription Agreement and the Partnership Agreement (and the Purchaser’s Side letter), the consummation of the transactions contemplated hereby and thereby, and the performance of the Purchaser’s obligations hereunder and thereunder do not and will not conflict with, or result in any violation of or default under, any provision of any certificate of incorporation, memorandum and articles of association, by-laws, trust agreement, partnership agreement or other organizational or governing instrument applicable to the Purchaser, or any agreement or other instrument to which the Purchaser is a party or by which the Purchaser or any of the Purchaser’s properties are bound, or any permit, franchise, judgment, decree, statute, order, rule or regulation applicable to the Purchaser or to the Purchaser’s business or properties.

 

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7.6                               No General Solicitation.  The Purchaser was not offered the opportunity to subscribe for an Interest (or otherwise invest) in the Fund by means of any form of general solicitation or advertising, such as media advertising, public seminars or pursuant to a generally accessible website.  None of the General Partner, the Advisor, or any person acting on their behalf (or on behalf of the Fund) offered to sell the Purchaser any Interest by means of general solicitation.

 

7.7                               Access to Information.  The Purchaser has either consulted its own investment advisor, attorney or accountant about the investment and proposed purchase of the Interest and its suitability to the Purchaser, or chosen not to do so, despite the recommendation of that course of action by the General Partner.  Any special acknowledgement set forth below with respect to any statement in Appendix C shall not be deemed to limit the generality of this representation and warranty.

 

The Purchaser has been furnished with a copy of the Partnership Agreement.  The Purchaser has reviewed such document and understands the risks of, and other considerations relating to, the purchase of an Interest, including the risks set forth in “Risk Factors” section and “Certain Investment Structuring, Legal, Tax and Other Considerations” section of Appendix C and the effect of the default and indemnification provisions of the Partnership Agreement.  The Purchaser has been provided an opportunity to ask questions of, and the Purchaser has received answers thereto satisfactory to the Purchaser from, the Fund and its representatives regarding the terms and conditions of the offering of the Interests, and the Purchaser has obtained any and all additional information requested by the Purchaser of the Fund and its representatives to verify the accuracy of all information furnished to the Purchaser regarding the offering of the Interests.  The Purchaser is purchasing an Interest relying solely on the information contained in the Partnership Agreement, this Subscription Agreement, the Purchaser’s Side letter and legal opinion (if any) provided to it in determining to make its investment in the Fund, and is not relying on any other oral or written statement, representation, warranty or guarantee with respect to the offering of Interests by the Fund, any members of the Sponsor Group, any placement agent or any other representative, agent or affiliate of any of them (and none of such persons have made any representation to the Purchaser regarding the legality of its investment in the Interest under applicable legal investment or similar laws or regulations).

 

7.8                               Nominee Ownership.  If the Purchaser is acquiring an Interest as nominee for another person, the Purchaser hereby confirms that such person (if any) on whose behalf it is acquiring an Interest is as set forth in Appendix A and the confirmations, representations and warranties given by it pursuant to this Subscription Agreement are given both on behalf of itself and also separately on behalf of each such person and consequently, where appropriate, (a) references to the Purchaser in this Subscription Agreement shall be read as including references to each such person; and (b) it hereby confirms that it is duly authorised to execute and deliver this Subscription Agreement on behalf of such person and is liable to the Fund for any claims or  damages arising out of any breach of any confirmations, representations, or warranties made by such person hereunder.

 

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7.9                               Unregistered Offering.  The Purchaser understands that the Interests have not been approved by the U.S. Securities and Exchange Commission, any state securities commission, the China Securities Regulatory Commission, or other regulatory authority in any jurisdiction, nor have any of the foregoing authorities passed upon the merits of this offering or the adequacy of the offering materials.

 

7.10                        Authorization of Purchase.  (a) If the Purchaser is an entity of the kind set forth in Appendix A, then (i) it is duly organized, formed or incorporated, as the case may be, and validly existing and in good standing, under the laws of the Purchaser’s jurisdiction of organization, formation or incorporation set forth in Appendix A, and (ii) the Purchaser has all requisite power and authority to execute, deliver and perform the Purchaser’s obligations under this Subscription Agreement and the Partnership Agreement, and to subscribe for and purchase an Interest hereunder.  The individual or individuals signing this Subscription Agreement and giving these warranties, as the case may be, on behalf of the Purchaser have been duly authorized by the Purchaser to do so and their execution of this Subscription Agreement (and the Purchaser’s Side letter) is sufficient (by itself without the additional consent of any person not listed on the signature pages hereto) to constitute legal, valid and binding obligations of the Purchaser in accordance with the applicable laws and by-laws of the Purchaser, and this Subscription Agreement is, upon acceptance by the General Partner, and the Partnership Agreement will be, the Purchaser’s legal, valid and binding obligations, enforceable against the Purchaser in accordance with their respective terms save as such terms are modified by operation of law, principles of equity or bankruptcy.

 

(b) If the Purchaser is an individual, then he/she has all requisite legal capacity to acquire and hold the Interests and to execute, deliver and comply with the terms of each of the documents required to be executed and delivered by him/her in connection with his/her investment in the Fund.  This Subscription Agreement is, upon acceptance by the General Partner, and the Partnership Agreement will be, his/her legal, valid and binding obligation, enforceable against him/her in accordance with their respective terms save as such terms are modified by operation of law, principles of equity or bankruptcy.

 

Each of consent, approval, order, registration, qualification, designation, declaration, and filing with, any governmental or regulatory authority or other person (to the extent applicable) in any jurisdiction that will be required in connection with the execution, delivery and performance of this Subscription Agreement and the consummation of the transactions contemplated hereby or thereby, has been obtained by the Purchaser and remains in full force and effect.  The execution and delivery by the Purchaser of, and compliance by the Purchaser with, this Subscription Agreement, the Partnership Agreement and each other document required to be executed and delivered by the Purchaser in connection with this subscription for Interests does not violate, represent a breach of, or constitute a default under, any instruments governing the Purchaser, any applicable law, regulation or order, or any agreement to which the Purchaser is a party or by which the Purchaser is bound.

 

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7.11                        Compliance with Anti-Money Laundering Regulations.  The Purchaser acknowledges that, pursuant to anti-money laundering laws and such other regulations and other laws and regulations within their respective jurisdictions, the Fund, the General Partner and/or any administrator may be required to collect further documentation verifying the Purchaser’s identity and the source of funds used to purchase an Interest before, and from time to time after, acceptance by the General Partner of this Subscription Agreement.  The Purchaser hereby consents to the disclosure to relevant third parties of information provided pursuant to the foregoing sentence and to hold harmless and indemnify each of the Indemnified Persons against any direct losses arising from the failure to process the Purchaser’s subscription of the Interest if the Purchaser does not provide such requested information. To comply with applicable anti-money laundering laws and regulations of the Cayman Islands and other applicable jurisdictions, (i) all payments and contributions by the Purchaser to the Fund and all payments and distributions to the Purchaser from the Fund will only be made in the Purchaser’s name and (ii) to and from a bank account of a bank based or incorporated in or formed under the laws of the United States or a bank that is registered in the Cayman Islands or that is regulated in and either based or incorporated in or formed under the laws of the United States or another “Approved Country” and that is not a “foreign shell bank” within the meaning of the U.S. Bank Secrecy Act (31 U.S.C. § 5311 et seq.), as amended, and the regulations promulgated thereunder by the U.S. Department of the Treasury, as such regulations may be amended from time to time (clauses (i) and (ii) collectively, the “Bank Account Requirements”).  The Purchaser further understands and agrees that any such payments or distributions will be paid to the same account from which its investment in the Fund was originally remitted unless the General Partner, in its sole discretion, agrees with the Purchaser otherwise.  For purposes of this Subscription Agreement, an “Approved Country” means a country or territory that under the Cayman Islands Money Laundering Regulations (as amended), issued pursuant to the Proceeds of Crime Law of the Cayman Islands (as amended), as such regulations may be amended from time to time, is recognised as having anti-money laundering legislation equivalent to that of the Cayman Islands.  The Purchaser further acknowledges that, if the Purchaser is an individual and is subscribing for an Interest in his or her own personal capacity, he or she may be required to provide additional information and related regulatory documentation.

 

The Purchaser acknowledges that the General Partner will not accept any investment by natural persons or entities acting, directly or indirectly, in contravention of any applicable anti-money laundering or other regulations or conventions of the Cayman Islands or any other jurisdictions, or on behalf of terrorists, terrorist organisations or narcotics traffickers, including those persons or entities that are included on any relevant lists maintained by the United Nations, the North Atlantic Treaty Organization, the Organisation for Economic Cooperation and Development, the Financial Action Task Force, the U.S. Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”), the U.S. Securities and Exchange Commission, the U.S. Federal Bureau of Investigation, the U.S. Central Intelligence Agency, the U.S. Internal Revenue Service (“IRS”) and the Cayman Islands all as may be amended from time to time (“Prohibited Investment”).  The Purchaser represents and warrants that the proposed investment to be made by it in the Fund does not directly or indirectly (a) contravene any applicable anti-money laundering or other regulations or conventions, or (b) constitute a Prohibited Investment.  The Purchaser further represents and warrants that the funds invested by it in the Fund are not derived from illegal or illegitimate activities and that it will promptly notify the General Partner in writing of any change in its status or the status with respect to its representations and warranties regarding Prohibited Investments.  The Purchaser agrees to promptly provide such information and documents, at any time, including after its admission as a Limited Partner of the Fund, as may be requested by the Advisor, the General Partner, any administrator or custodian of the Fund or any of their respective agents and/or delegates to ensure compliance by each of them, or any other person, with applicable anti-money laundering laws and regulations in the Cayman Islands or other  jurisdictions (including, without limitation, any information regarding the Purchaser’s ownership or control (both direct and indirect)). The Purchaser represents and warrants that neither the Purchaser nor any person controlling or controlled by it (including its officers and directors) nor any of its beneficial owners, nor any person for whom the Purchaser is acting as agent or nominee in connection with the acquisition of an Interest, (i) appears on the Specially Designated Nationals and Blocked Persons List of OFAC, in the Annex to United States Executive Order 132224 — Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism, or on the United Kingdom HM Treasury consolidated list of financial sanctions targets, (ii) is a “foreign shell bank” within the meaning of the U.S. Bank Secrecy Act (31 U.S.C. §5311 et seq.), as amended, and the regulations promulgated thereunder by the U.S. Department of the Treasury, (iii) is otherwise a “Prohibited Person” (as defined in Appendix A-1) under the laws of the United States, (iv) identified as a terrorist organization on any relevant lists maintained by governmental authorities, or (v) is the target of any sanction, regulation or law promulgated by OFAC, the United Kingdom HM Treasury or any other governmental authority (such sanctions, regulations and laws, together with any supplement or amendment thereto, the “Sanctions Laws”) such that entering into this Subscription Agreement or the Partnership Agreement or the performance of any of the transactions contemplated hereby or thereby would contravene such Sanctions Laws.  The Purchaser further represents that it does not know or have any reason to suspect that (A) the monies used to fund its investment in the Fund have been or will be derived from or related to any illegal activities, including, but not limited to, money laundering activities and (B) the proceeds from its investment in the Fund will be used to finance any illegal activities.  The Purchaser understands and agrees that, by law, the General Partner may be obligated to “freeze” its account in the Fund, by prohibiting additional investments from it, declining any withdrawal requests and/or segregating the assets in the account or any distributions relating thereto in compliance with applicable governmental regulations, and the General Partner may be required to report such action and to disclose the Purchaser’s identity to OFAC or any government authorities with jurisdiction.

 

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The representations and warranties set forth in this Section 7.11 shall be deemed repeated and reaffirmed by the Purchaser as of each date that the Purchaser is required to make a contribution of capital to or receives a distribution from the Fund.  If at any time during the term of the Fund the representations and warranties set forth in this Section 7.11 shall cease to be true, the Purchaser shall promptly so notify the General Partner in writing.

 

7.12                        Additional Information. The Purchaser acknowledges that the Fund could be requested or required to obtain certain assurances from investors subscribing for Interests in connection with any disclosure of information pertaining to such investors to governmental, regulatory or other authorities, financial intermediaries and Persons, in each case, in compliance with applicable anti-money laundering, embargo and trade sanctions, “Know-Your-Client”, or similar laws, regulations, requirements (whether or not with force of law) or regulatory, disclosure or compliance policies (collectively, “Requirements”).  It is the Fund’s policy to comply with Requirements to which it is or may become subject to and to interpret them broadly in favor of disclosure.  The Purchaser hereby agrees that it will provide additional information or take such other actions as may be reasonably necessary or advisable for the Fund or its counterparties (in the sole judgment of the Fund, the General Partner and/or its Affiliates) to comply with any Requirements to which they are subject, related legal process or appropriate formal requests.  The Purchaser, by executing this Subscription Agreement, consents and by owning Interests is deemed to have consented, to disclosure by the Fund, the General Partner, its Affiliates and/or their respective agents to relevant third parties of information pertaining to it in respect of Requirements or information requests related thereto.

 

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7.13                        Related Investors.  The Purchaser covenants that it will disclose to the General Partner any other investor or potential investor of Interests that may be related to such Purchaser.  If the Purchaser is related to any other existing or potential investor of Interests, please list the identity of such other investor in Appendix A.

 

7.14                        Default Provisions.  The Purchaser understands that it will be subject to the default provisions set forth in the Partnership Agreement in the event the Purchaser fails to make Capital Contributions as required by the Partnership Agreement.

 

7.15                        Other Activities of the General Partner.  The Purchaser understands that the General Partner and its affiliates will receive substantial compensation in connection with the Fund irrespective of the success of its operation and, to the extent permitted by the Partnership Agreement and applicable law, the General Partner and its affiliates are (and in the future may continue to be) engaged in businesses that are competitive with that of the Fund.  Subject to the restrictions contained in the Partnership Agreement and the Purchaser’s Side Letter, the Purchaser agrees and consents to these activities of the General Partner and its affiliates even though there are conflicts of interest inherent in such activities and even though the Purchaser will have no interest in such activities except as set forth in the Partnership Agreement.

 

7.16                        Politically Exposed Person.  Unless otherwise disclosed in Appendix A, the Purchaser represents and warrants that neither it nor, so far as known to it, any individual referred to in Section B7 or D3 (as applicable) of Appendix B is an individual who is a “Politically Exposed Person” (as defined in Appendix A-1).

 

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7.17                        Tax Reporting Requirements.  The Purchaser has completed and delivered to the Fund (i) an IRS Form W-9 (for Purchasers who are U.S. Persons for U.S. Tax Purposes3), or successor form thereto (“Form W-9”) or Form W-8 BEN (or other applicable version of Form W-8) (for persons other than U.S. Persons for U.S. Tax Purposes), or successor form thereto (“Form W-8”), as applicable, and (ii) the Individual Self-Certification Form in Appendix E or Entity Self-Certification Form in Appendix F, as applicable, and certifies that the information contained in such executed document submitted herewith is complete and accurate.  The Purchaser shall promptly inform the General Partner of any change in such information. The Purchaser agrees to complete and execute an updated, complete, accurate and valid Form W-9 or Form W-8, as applicable, on or before the date that the previously submitted form expires or becomes obsolete or incorrect.  In addition, the Purchaser covenants that, if admitted as a Limited Partner, it also will provide, and cause its direct and indirect owners or beneficiaries to provide, any information, documentation, and representations as the Fund, the General Partner or any affiliate thereof may from time to time request (including, without limitation, information with respect to the Purchaser’s identity, citizenship, residency, tax status, taxable year end, business, control or ownership) so as to permit the Fund, the General Partner or any affiliate thereof to avoid withholding taxes in any jurisdiction or to comply with any applicable legal, regulatory or tax requirements (including any information reporting, disclosure or similar requirements), including pursuant to any provision of FATCA, or Article 63 Notifications under the Financial Instruments and Exchange Act of Japan, and any guidance with respect thereto. The Purchaser shall promptly inform the General Partner of any change in such information, documentation or representations. The Purchaser agrees that any such information, documentation and representations shall be true, correct, and complete in all material respects and may be disclosed as reasonably necessary or advisable to avoid such withholding taxes or to comply with any such requirements.  In the event that the Purchaser fails to promptly provide the reasonably requested information, documentation and representations, the Purchaser understands that the Fund or the General Partner may require such Purchaser to indemnify the Fund, the General Partner and the Other Purchasers for any direct liabilities (including taxes, interest and penalties) solely arising out of such failure. The Purchaser hereby indemnifies the General Partner and the Fund for any FATCA-related loss, cost, expenses, damage, claims and/or demands (including, but not limited to, any withholding tax, penalties or interest suffered by the Fund and/or the General Partner) which the General Partner and/or the Fund may incur solely as a result of any fraudulent or felonious action or inaction (directly or indirectly) of the Purchaser resulting in a material adverse effect on the Fund and/or the General Partner; and this indemnification shall survive the Purchaser’s death or dissolution or disposition of its Interests.  The Purchaser acknowledges and agrees that it shall have no claim against the Fund, or its agents, for any form of damages or liability as a result of actions taken or remedies pursued by or on behalf of the Fund in order to comply with FATCA; provided, that any such damages or liability is not attributable to any fraud, gross negligence, willful misconduct, bad faith or reckless disregard of duties under or material breach of the Partnership Agreement (as applicable) by the Fund or its agents.  By executing this Agreement, the Purchaser, subject to the Purchaser’s Side Letter, waives any provision under the laws and regulations of any jurisdiction that would, in the absence of such waiver, prevent or inhibit the Fund’s compliance with applicable law as described in this paragraph, including (but not limited to) preventing (i) the Purchaser from providing any requested information or documentation, or (ii) the disclosure by the Fund or its agents of the provided information or documentation to applicable governmental or regulatory authorities.  The Purchaser further acknowledges that the Fund and the Advisor may take such action as each of them considers necessary in accordance with applicable law in relation to the Purchaser’s holding to ensure that any withholding tax payable by the Fund, and any related costs, interest, penalties and other losses and liabilities suffered by the Fund, the administrator, or any other investor, or any agent, delegate, employee, director, officer or affiliate of any of the foregoing persons, solely arising from the Purchaser’s failure to provide any requested documentation or other information to the Fund, is reasonably economically borne by the Purchaser.

 

7.18                        Correctness of Information.  All information furnished by the Purchaser on this Subscription Agreement, Appendix A, Appendix B and Appendix E or Appendix F and in any IRS or other tax form delivered to the Fund or the General Partner, is or will be (as of the date of delivery) true and complete.

 

7.19                        No Separate Counsel.  With regard to the tax, legal, regulatory and other economic considerations related to its investment, the Purchaser has only relied on the advice of, or has only consulted with, its own professional advisers.  The Purchaser understands that Skadden, Arps, Slate, Meagher & Flom LLP and Walkers (Hong Kong) act as counsels (the “Counsels”) to the General Partner and/or certain of their affiliates and, in connection with this offering of Interests and subsequent advice to the General Partner, the Counsels will not be representing investors of the Fund (including the Purchaser) and no independent counsel has been retained to represent investors in the Fund.

 

3  For purposes of this paragraph, “U.S. Person for U.S. Tax Purposes” shall have the meaning set forth in Appendix A-1.

 

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7.20                        Member of the Public in the Cayman Islands.  The Purchaser is not a member of the public in the Cayman Islands.

 

7.21                        No Public Disclosure Requirements.  The Purchaser is not subject to the Freedom of Information Act, 5 U.S.C. § 552 (“FOIA”), any state public records access laws, any state or other jurisdiction’s laws similar in intent or effect to FOIA, or any other similar statutory or regulatory requirement that might result in the disclosure of confidential information relating to the Fund except as previously disclosed to the General Partner in writing.

 

7.22                        Privacy Notice. If the Purchaser is a natural person (or an entity that is an “alter ego” of a natural person (e.g., a revocable grantor trust, an individual retirement account or an estate planning vehicle)), the Purchaser acknowledges that he or she has received and read a copy of the privacy notice and practices with respect to the General Partner’s or its Affiliate’s collection and maintenance of non-public personal information relating to the Purchaser set forth in Appendix D hereof.

 

7.23                        If the Purchaser is (or will be at any time during the period which the Purchaser holds any Interest in the Fund) a partnership, limited liability company, grantor trust, estate or S corporation for United States federal income tax purposes (a “flow-through entity”), then (i) none of the Purchaser’s (direct or indirect) beneficial owners will have substantially all of the value of its direct or indirect interest in the Purchaser attributable to the Purchaser’s interest in the Fund, and (ii) the Purchaser was not formed for a principal purpose of permitting the Fund to satisfy the 100-partner limitation of United States Treasury Regulation Section 1.7704-1(h)(1). If the Purchaser is an entity disregarded as separate from its owner for U.S. federal income tax purposes (a “Disregarded Entity”) and the first direct or indirect beneficial owner of the Purchaser that is not a Disregarded Entity (the “Purchaser’s Owner”) is a flow-through entity, the Purchaser represents and warrants that the representations in this Section 7.23 would be true if all references to “the Purchaser” were replaced with “the Purchaser’s Owner.”

 

7.24                        Disqualifying Event.  Neither the Purchaser (nor any person who would, through the Purchaser’s ownership in the Fund, be deemed to beneficially own an interest in the Fund) is or has been subject to, is experiencing or has experienced (in each case, within the period of time prescribed by the applicable disqualifying or disclosable event under Rule 506(d) under the Securities Act) any of the events described in Rule 506(d)(1)(i)-(viii) under the Securities Act (a “Disqualifying Event”).4  The Purchaser shall promptly notify the General Partner if the Purchaser or any such other person becomes subject to or experiences a Disqualifying Event or becomes the subject of a formal proceeding that would, if adversely determined, constitute a Disqualifying Event.

 

7.25                        Unregistered Offering in Hong Kong.  The Purchaser understands that the Fund and/or the Interests have not been authorized by the Securities and Futures Commission of Hong Kong (the “SFC”), and this Subscription Agreement and the appendices thereof have not been reviewed or approved by the SFC, nor has a copy of them been registered by the Registrar of Companies of Hong Kong.  The Purchaser has been advised to exercise caution in relation to the offer or solicitation and in case doubt about any of the contents of this Subscription Agreement and the appendices thereof, the Purchaser should obtain independent professional advice.

 

4  Please refer to Appendix A-2 for more information on “Disqualifying Events”.

 

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7.26                        Borrowings.  The Purchaser acknowledges that the General Partner shall have the right to make a collateral assignment to a lender or other credit party of the right to issue drawdown notices and other related rights, titles, interests, remedies, powers and privileges of the Fund and/or the General Partner with respect to the Commitments and Capital Contributions of the Partners in accordance with Section 3 of Appendix I of the Partnership Agreement (subject to the Purchaser’s Side Letter) and in connection therewith, the Purchaser agrees that it shall honor any drawdown notice issued by any such lender or other credit party, provided that any exercise of such rights shall be in accordance with the Partnership Agreement.

 

7.27                        Residence.  The Purchaser maintains its domicile or principal place of business at the residential or legal address as shown in Appendix A and the Purchaser is not merely transient or temporarily resident there.

 

7.28                        No Litigation.  There is no litigation, investigation or other proceeding pending or, to the knowledge of the Purchaser, threatened against the Purchaser or any of its Affiliates which, if adversely determined, would adversely affect the Purchaser’s business or financial condition or the Purchaser’s ability to perform its obligations under this Subscription Agreement or the Partnership Agreement.

 

7.29                        Publicly Traded Partnership.  By the purchase of the Interest, the Purchaser represents to the General Partner and the Fund that (i) the Purchaser has neither acquired nor will the Purchaser transfer or assign the Interest the Purchaser purchases (or any interest therein) or cause the Interest (or any interest therein) to be marketed on or through an “established securities market” within the meaning of section 7704(b)(1) of the Code or a “secondary market” (or the substantial equivalent thereof) within the meaning of section 7704(b)(2) of the Code, including, without limitation, an over-the-counter-market or an interdealer quotation system that regularly disseminates firm buy or sell quotations, and (ii) the Purchaser either (A) is not, and will not become, a partnership, Subchapter S corporation, or grantor trust for U.S. Federal income tax purposes, or (B) is such an entity, but none of the direct or indirect beneficial owners of any of the interests in such entity have allowed or caused, or will allow or cause, 40 percent or more of the value of the beneficial owners’ respective ownership interests in the Purchaser to be attributable to the Purchaser’s ownership of Interest in the Fund.  Further, the Purchaser agrees that if the Purchaser determines to transfer or assign any of the Interest pursuant to the provisions hereof and of the Partnership Agreement, the Purchaser will cause its proposed transferee(s) to agree to the transfer restrictions set forth herein and therein and to make the representations set forth in (i) and (ii) above.

 

8.                                      Representation Specifically by Non-U.S. Persons.  The Purchaser hereby (a) declares, warrants, represents and agrees with, the General Partner and the Fund that the following statements are true as of the date hereof and will be true as of the Closing Date and as of each date the Purchaser makes additional Capital Contributions to the Fund and (b) undertakes and agrees to comply with the covenants set forth below:

 

8.1                               Neither the Purchaser, nor any other person (if any) on whose behalf it is acquiring a beneficial interest in the Fund is a U.S. Person.  The Purchaser and each person (if any) on whose behalf it is acquiring a beneficial interest in the Fund have not been offered, and are not acquiring or purchasing, the Interests in the United States.  In addition, the Purchaser is not funding its investment in the Fund with funds obtained from U.S. Persons;

 

12

 

8.2                               All offers to sell and offers to buy Interests were made to or by the Purchaser while it was outside the United States and at the time that its order to buy the Interests was originated outside the United States, or it is a United States dealer or other professional fiduciary acting on behalf of a discretionary account or similar account (other than an estate or trust) held for the benefit or account of a person other than a U.S. Person;

 

8.3                               The Purchaser understands that the Interests have not been and will not be registered under the Securities Act, the Exchange Act, or the securities laws of any State within the United States and accordingly may not be offered, sold, transferred or pledged by it or on its behalf (a) outside the United States to a non-U.S. Person, or (b) in the United States or to a U.S. Person unless:

 

(i)                                     the Interests are duly registered under the Securities Act and all applicable State securities laws; or

 

(ii)                                  such offer or sale is made in accordance with the provisions of Regulation D under the Securities Act or pursuant to another applicable exemption from registration, and, if requested, the General Partner has received an opinion of counsel to such effect satisfactory to it; or

 

(iii)                               in the case of transfers outside the United States to non-U.S. Persons, such offer or sale is made in accordance with the provisions of Regulation S under the Securities Act or pursuant to another applicable exemption from registration, and, if requested, the General Partner has received an opinion of counsel to such effect satisfactory to it.

 

8.4                               The Purchaser hereby represents and warrants that it was offered the Interests in the jurisdiction listed in Question 7 of Part III of Appendix A or in another jurisdiction outside the United States.

 

8.5                               The Purchaser will notify the General Partner immediately if the Purchaser becomes a U.S. Person at any time during which the Purchaser holds or owns any Interests.

 

9.                                      Save as otherwise disclosed in Appendix A, the Purchaser is not subject to any public disclosure law or to any similar regulation of any relevant stock exchange or any regulatory authority that would require it to disclose to any person any confidential information which may have come to its knowledge as a result of being a Limited Partner in the Fund, including information concerning:

 

(a)                                 the affairs of the Fund, including, without limitation, the terms of the Partnership Agreement, financial statements or other financial information regarding the Fund, or information regarding the performance of the Fund or any or all of its Investments;

 

(b)                                 any of the Partners (including their identity); or

 

(c)                                  concerning any proposed or actual Investment by the Fund.

 

If the Purchaser may be subject to any such public disclosure laws, the Purchaser agrees that it has indicated the relevant laws to which the Purchaser is subject and provided any additional explanatory information required pursuant to Appendix A.

 

13

 

10.                               The Purchaser hereby represents and warrants the following statements are true and correct (and will continue to be true and correct throughout the entire period during which it holds an Interest):

 

(a)                                 it agrees not to offer, sell, transfer, charge, pledge, hypothecate or otherwise dispose of, directly or indirectly, all or any part of its Interest or any interest therein, except in accordance with the terms and provisions of the Partnership Agreement and applicable law (including, without limitation, the registration requirements of the Securities Act or an exemption therefrom, the Exchange Act, and any other applicable securities laws), in a manner that would (i) cause the Fund to be in violation of, or be required to register the Interests under, the laws of any jurisdiction, (ii) require the Fund to register as an investment company under the Investment Company Act, (iii) cause the Fund to be treated as an association taxable as a corporation, disqualified or terminated as a partnership for tax or non-tax purposes, or (iv) result in any other material adverse tax consequences for the Fund; and

 

(b)                                 it is not currently making (and at the time of its admission as a Limited Partner to the Fund will not be making) a market in the Interests and will not, at any time after its admission as Limited Partner to the Fund, make a market in any such interests.

 

11.                               Confidentiality.  The Purchaser acknowledges and agrees that (i) it has received and will in the future receive confidential information regarding the Fund, the General Partner, the Advisor, the direct and indirect equity owners of the General Partner, any other member of the Sponsor Group, the Portfolio Companies as well as the other Partners (the “Confidential Information”), (ii) such Confidential Information contains trade secrets and is proprietary, and (iii) disclosure of such Confidential Information would cause substantial harm and damages to the above entities and the Partners.  The Purchaser hereby represents and warrants that except as previously disclosed in writing to the General Partner, it has taken all actions and obtained all consents necessary to enable it to comply with the provisions of Article 17 of the Partnership Agreement. The Purchaser hereby agrees that (i) it will not use any Confidential Information it receives for any purpose other than as permitted by this Subscription Agreement, the Partnership Agreement or the Purchaser’s Side letter; (ii) it will promptly return or destroy all Confidential Information if being notified by the General Partner that it will not be admitted to the Fund as a Limited Partner; and (iii) it shall comply with the requirements set forth in Article 17 of the Partnership Agreement, subject to the Purchaser’s Side letter.

 

12.                               Amendments, Waivers and Notices.  This Subscription Agreement may be amended and the observance of any provision hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Purchaser and the General Partner (acting on behalf of the Fund).  Each notice relating to this Subscription Agreement shall be delivered in the manner required of notices under the Partnership Agreement.

 

13.                               Survival of Representations and Warranties.  All representations, warranties and covenants contained herein or made in writing by the Purchaser, or by or on behalf of the Fund in connection with the transactions contemplated by this Subscription Agreement shall survive the execution and delivery of this Subscription Agreement, any investigation at any time made by or on behalf of the Fund, the General Partner or the Purchaser, and the issue and sale of Interests.

 

14.                               Successors and Assigns.  This Subscription Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective heirs, successors and permitted assigns of the parties hereto.

 

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15.                               Applicable Law.  THIS SUBSCRIPTION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE INTERPRETED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE CAYMAN ISLANDS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED WHOLLY WITHIN THAT JURISDICTION.  The General Partner hereby submits to the non-exclusive jurisdiction of the courts of the Cayman Islands for the resolution of all matters pertaining to the enforcement and interpretation of this Subscription Agreement.  To the fullest extent permitted by applicable law, the Purchaser hereby irrevocably accepts for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of the aforesaid courts.  The Purchaser hereby further irrevocably waives any claim that any such courts lack personal jurisdiction over it, and agrees not to plead or claim, in any legal action proceeding with respect to this Subscription Agreement in any of the aforementioned courts, that such courts lack personal jurisdiction over it.

 

16.                               Rights of Third Parties.  Subject to the Contracts (Rights of Third Parties) Law, 2014, as amended, modified, re-enacted or replaced, or any law having similar effect (the “Third Party Rights Law”),  a person who is not a party to this Subscription Agreement may not, in its own right or otherwise, enforce any term of this Subscription Agreement, except that an Indemnified Person may in its own right enforce Section 5 and Section 7.11 and any Other Purchaser may in its own right enforce Section 7.17, subject to and in accordance with the provisions of the Third Party Rights Law.  Notwithstanding any other term of this Subscription Agreement, the consent of any person who is not a party to this Subscription Agreement (including, without limitation, any Indemnified Person) is not required for any variation of, amendment to, or release, rescission, or termination of, this Subscription Agreement (including without limitation, any amendment, release, rescission or termination of any provision conferring any right or benefit on any Indemnified Person).

 

17.                               Data Protection of EEA Data Subjects.

 

(a)                                 For the purposes of this Section 17, (i) the term “Data Protection Laws” means any applicable data protection laws relating to the protection of individuals with regard to the processing of personal data including: (A) the General Data Protection Regulation 2016/679/EU on the protection of natural persons with regard to the processing of personal data and on the free movement of such data (the “GDPR”) and any national laws supplementing the GDPR (including in the United Kingdom, the Data Protection Act 2018); (B) Directive 2002/58/EC on privacy and electronic communications (ePrivacy Directive) as implemented under national laws and (C) any other data protection laws, regulations or regulatory requirements, guidance and codes of practice applicable to the processing of personal data (as amended and/or replaced from time to time); and (ii) the terms “controller”, “data subject”, “personal data” and “processing” shall have the meanings given to them in the GDPR. Accordingly, “data subject” shall include any natural person located in the EEA, including the Purchaser (if applicable) and/or any of the Purchaser’s partners, members, shareholders, managers, directors, officers, employees, agents, representatives and/or any other natural person associated with the Purchaser, and “personal data” shall include any information relating to any such data subject captured in, for example: (i) any identification documents, bank statements or other documents provided by the Purchaser to the General Partner, any person who has been appointed to provide administration, legal, compliance and/or similar services in respect of the Fund (“Service Providers”) or any of their Affiliates; and (ii) any information obtained by the General Partner, any Service Provider or any of their Affiliates in respect of the Purchaser, or any data subjects associated with it, from any of the sources referred to in the privacy statement included in Appendix D (the “Privacy Statement”), including (but not limited to) a person’s name, identification numbers, location data, financial information or other information relating to the identity of such person.

 

15

 

(b)                                 The Purchaser represents, warrants and confirms that:

 

(i)                                     the Purchaser has carefully read the terms of the Privacy Statement;

 

(ii)                                  where the Purchaser has provided personal data about a data subject, the Purchaser has (A) provided a fair processing notice to such data subject in accordance with the Data Protection Laws, including the purposes for which their personal data will be processed and transferred by the Purchaser to countries located outside the EEA, with reference to the appropriate safeguards implemented to protect any transferred personal data, the legal basis for such processing and the categories of recipients of the personal data (among which the General Partner will be included); and (B) made available to such data subjects the information referred to in the Data Protection Laws including Article 14 GDPR in relation to the processing of personal data carried out by the General Partner in relation to the Subscription Agreement; and

 

(iii)                               the Purchaser understands and agrees that the General Partner shall be a separate controller in relation to the processing of any personal data provided by the Purchaser or otherwise provided or obtained in relation to the Purchaser and/or the Purchaser’s data subjects in respect of the Purchaser’s investment in the Fund, and shall independently determine the purposes and means of the processing of any such personal data.

 

(c)                                  By submitting personal data to the General Partner, any Service Provider and/or any of their respective Affiliates, the Purchaser represents, warrants, confirms and agrees, as applicable, that:

 

(i)                                     as controller of such personal data, the Purchaser complies with the requirements of the Data Protection Laws applicable to controllers in connection with this Subscription Agreement and shall not knowingly do anything which might lead to a breach by the General Partner of the Data Protection Laws;

 

(ii)                                  the Purchaser has obtained all appropriate consents, approvals and/or authorisation to process and transfer such personal data lawfully and in accordance with the Data Protection Laws, including in relation to any personal data that is or may be provided to the General Partner, any Service Provider or any of their affiliates for the purposes specified in the Privacy Statement; and

 

(iii)                               there is no prohibition or restriction which would prevent or restrict:  (A) the Purchaser from disclosing or transferring such personal data to the General Partner, any Service Provider and/or any of their Affiliates; (B) the General Partner, any Service Provider and/or any of their Affiliates from lawfully disclosing or transferring such personal data to the General Partner, any Service Provider and/or any of their Affiliates, or to any such person’s employees, officers, agents, delegates, sub-processors, sub-contractors, tax, legal and other advisors, auditors, accountants, administrators, brokers, depositaries, custodians, investors and/or potential investors, placement agents, vendors or purchasers of investments, banks or other financial institutions or finance providers, registrars, tax authorities and/or other competent regulatory or governmental authorities or bodies, or to any of the aforementioned persons’ service providers or advisors, in each case for the purposes specified in the Privacy Statement; or (C) the General Partner, any Service Provider, any of their respective Affiliates or any of the other persons referred to in paragraph sub-clause (B) above from processing such personal data for the purposes specified in the Privacy Statement.

 

16

 

(d)                                 The Purchaser acknowledges and agrees that in relation to this Subscription Agreement, personal data may be transferred or otherwise processed to entities located outside of the EEA.  To the extent that these jurisdictions do not ensure an adequate level of protection of personal data, such transfer of personal data shall be made in compliance with the Data Protection Laws, including, where applicable, subject to appropriate safeguards or based on one of the derogations set out under Article 49 GDPR.

 

(e)                                  The Purchaser is hereby notified that the Purchaser and/or any data subject in relation to which the Purchaser has provided personal data have certain rights in relation to the processing of their personal data that they may wish to exercise as set out under the Data Protection Laws, including but not limited to the right to rectify, restrict the use of, request erasure of, or object to processing of, the Purchaser’s or their personal data, or withdraw the Purchaser’s or their consent to the processing and/or transfer of such personal data, in each case in accordance with the Data Protection Laws.  The Purchaser acknowledges and agrees that in the event that any data subject in relation to which the Purchaser has provided personal data to the General Partner, any Service Provider or any of their Affiliates exercises any such rights, and without prejudice to each party complying with such request in compliance with the Data Protection Laws, if the General Partner reasonably determines that the exercising of such rights could materially adversely affect the Fund or any investor in the Fund, then this may result in the General Partner no longer being able to accept the Purchaser’s subscription under this Subscription Agreement, and therefore the General Partner shall be entitled, upon written consent of the Purchaser (where such consent shall not be unreasonably withheld), to withdraw the Purchaser completely from, or transfer the Purchaser’s Interest, in each case in accordance with the terms of the Partnership Agreement and this Subscription Agreement.

 

18.                               Joint and Several Obligations.  If the Purchaser consists of more than one person, this Subscription Agreement shall consist of the joint and several obligation of all such persons.

 

19.                               Suspension of Distributions.  The General Partner shall, by written notice to the Purchaser, have the power and authority to suspend any distribution rights that the Purchaser may possess with respect to the Interest if: (a) the Purchaser is identified as (i) a person appearing on the Specially Designated Nationals and Blocked Persons List of OFAC, (ii) a person named in the Annex to United States Executive Order 132224 — Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism, as amended from time to time; or (iii) a person that is known by the General Partner as being affiliated with any person, government, country or entity as described in (i) or (ii) above; (b) the General Partner is so ordered by a court or government authority; (c) the General Partner reasonably deems it necessary to do so in order to comply with  any applicable anti-money laundering or other regulations or conventions applicable to the General Partner, the Fund or its service providers; or (d) pursuant to the terms of the Partnership Agreement.

 

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20.                               Headings, etc.  The cover page, the table of contents and the headings of the paragraphs of this Subscription Agreement are inserted for convenience only and shall not be deemed to constitute a part hereof.

 

21.                               Entire Agreement.  This Subscription Agreement and the Partnership Agreement contain the entire agreement of the parties with respect to the subject matter hereof and thereof, and there are no representations, covenants or other agreements except as set forth herein or therein.

 

22.                               Counterparts.  This Subscription Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument. The execution of this Subscription Agreement may be satisfied in the form of an electronic signature as defined in the Electronic Transactions Law (2003 Revision) of the Cayman Islands (the “Electronic Transactions Law”). Sections 8 and 19(3) of the Electronic Transactions Law do not apply to this Subscription Agreement.

 

[Remainder of page intentionally left blank.]

 

18

 

IN WITNESS WHEREOF, the undersigned Purchaser has duly executed and delivered this Subscription Agreement as a deed on the date set forth below.

 

	
THE PURCHASER:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
RMB (in equivalent of U.S.$ payable)
    	
 
    
	
(Please print or type   name of Purchaser)
    	
Amount of Commitment
    
	
 
    	
 
    
	
 
    	
 
    
	
Executed as a Deed 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
					

 

	
Date:
    	
 
    	
, 2019.
    	
 
    
	
Signed in the presence of:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name of witness:
    	
 
    

 

PLEASE REMEMBER TO COMPLETE APPENDIX A, APPENDIX B, APPENDIX E OR APPENDIX F, AND APPENDIX G.

 

Signature-1

 

 

The General Partner hereby accepts the Purchaser’s application for subscription for Interests in the amount set forth below and the undersigned have duly executed and delivered this Subscription Agreement as a deed on the date set forth below.

 

	
NAME OF   PURCHASER:
    
	
 
    
	
 
    
	
Subscription Amount Accepted:
    	
 
    
	
EXECUTED AND ACCEPTED on this ___ day of               2019.
    

 

	
THE FUND: 
    	
 
    
	
Executed as a Deed 
    	
 
    
	
JD LOGISTICS PROPERTIES CORE FUND, L.P.  
    	
 
    
	
By: JD LOGISTICS PROPERTIES CORE FUND GP LTD., its General Partner 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Witness:
    	
 
    
	
Name: 
    	
 
    	
Name:  
    
	
Title:     Director
    	
 
    	
Occupation:
    
					

 

	
THE EXISTING PARTNERS OF THE FUND: 
    	
 
    
	
Executed as a Deed 
    	
 
    
	
JD LOGISTICS PROPERTIES CORE FUND GP LTD., as   attorney-in-fact 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Witness:
    	
 
    
	
Name: 
    	
 
    	
Name: 
    
	
Title:     Director 
    	
 
    	
Occupation:
    
					

 

	
THE GENERAL PARTNER: 
    	
 
    
	
Executed as a Deed  
    	
 
    
	
JD LOGISTICS PROPERTIES CORE FUND GP LTD., on its own behalf  
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Witness:
    	
 
    
	
Name:
    	
 
    	
Name: 
    
	
Title:     Director 
    	
 
    	
Occupation:
    
					

 

Signature-2

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