Document:

Exhibit 10.7

 

LOAN AGREEMENT

 

This Loan Agreement (this “Agreement”) is dated as of February     , 2011 between Synergy Pharmaceuticals, Inc., a Florida corporation (the “Company”), and the lender identified on the signature page hereto (the “Lender”).

 

WHEREAS, the Company is borrowing from Lender, and Lender is lending to the Company, the aggregate principal amount of $950,000 upon the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE, the Company and the Lender agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1           Definitions.  In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Note (as defined herein), and (b) the following terms have the meanings set forth in this Section :

 

“Action” shall have the meaning ascribed to such term in Section 2.1 (g).

 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.  With respect to a Lender, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Lender will be deemed to be an Affiliate of such Lender.

 

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

 

“Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Commission” means the Securities and Exchange Commission.

 

“Company Counsel” means Sichenzia Ross Friedman Ference LLP, with offices located at 61 Broadway, New York, New York 10006.

 

“Note” means the Promissory Notes due, subject to the terms therein, April 1, 2011, issued by the Company to the Lender hereunder, in the form of Exhibit A attached hereto.

 

“Disclosure Schedules” shall have the meaning ascribed to such term in Section.

 

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

 

“GAAP” shall have the meaning ascribed to such term in Section 2.1(e).

 

“Liens” means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material Adverse Effect” shall have the meaning assigned to such term in Section 2.10.

 

“Material Permits” shall have the meaning ascribed to such term in Section 2.1(i).

 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

“Lender Party” shall have the meaning ascribed to such term in Article III.

 

“SEC Reports” means all reports, schedules, forms, statements and other documents, including any amendments, the exhibits thereto and documents incorporated by reference therein, required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof.

 

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

 

“Trading Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the American Stock Exchange, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the New York Stock Exchange or the OTC Bulletin Board.

 

“Transaction Documents” means this Agreement and the Note, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

1.2           Purchase and Sale.

 

(a)   Simultaneously with the execution and delivery of this Agreement,

 

(i)            Lender is disbursing or causing to be disbursed in accordance with a separate letter of instructions provided by the Company the principal sum of $500,000; and

 

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(ii)           the Company is delivering or causing to be delivered to the Lender, a Note payable to the Lender in the principal amount of $500,000.

 

(b)   On February 21, 2011,

 

(i)            Lender will disburse or cause to be disbursed in accordance with a separate letter of instructions provided by the Company an additional principal amount of $450,000; and

 

(ii)           The Company will deliver or cause to be delivered to the Lender, a Note payable to the Lender in the principal amount of $450,000.

 

ARTICLE II.

REPRESENTATIONS AND WARRANTIES

 

2.1           Representations and Warranties of the Company.  The Company makes the representations and warranties set forth below to the Lender.  Except as set forth under the corresponding section of the disclosure schedules delivered to the Lender concurrently herewith (the “Disclosure Schedules”) which Disclosure Schedules shall be deemed a part hereof, and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules, or as set forth in the Company’s filings with the Securities and Exchange Commission.

 

(a)           Organization and Qualification.  The Company is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite corporate power and corporate authority to own and use its properties and assets and to carry on its business as currently conducted.  The Company is not in violation or default of any of the provisions of its certificate or articles of incorporation, bylaws or other organizational or charter documents.  The Company is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business  or condition (financial or otherwise) of the Company, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(b)           Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.  The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly

 

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authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection therewith.  Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(c)           No Conflicts.  The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the other transactions contemplated hereby and thereby do not and will not: (i) conflict with or violate any provision of the Company’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the Company is a party or by which any property or asset of the Company is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(d)           Filings, Consents and Approvals.  The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, except for SEC filings.

 

(e)           Financial Statements. The financial statements included in the SEC Reports have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries, if any, as of the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(f)            Material Changes. Since the date of the latest audited financial statements included within the SEC Reports (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company

 

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has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP, (iii) the Company has not altered its method of accounting and (iv) 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.

 

(g)           Litigation.  Except as disclosed in the SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company or any its properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Note or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect.

 

(h)           Compliance.  The Company has not received notice that it (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company under), nor has the Company received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(i)            Regulatory Permits. The Company possesses all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct its business as described in the SEC Reports, except where the failure to possess such permits could not have or reasonably be expected to result in a Material Adverse Effect (“Material  Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

(j)            Title to Assets.  The Company has good and marketable title in fee simple to all real property owned or leased by it that is material to the business of the Company and good and marketable title in all personal property owned or leased by it that is material to the business of the Company, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties.  Any real property and facilities held under lease by the Company are held by it under valid, subsisting and enforceable leases with which the Company is in compliance in all material respects.

 

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(k)           Certain Fees.  No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.  The Lender shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

 

(l)            Disclosure.  All disclosure furnished by or on behalf of the Company to the Lender regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.

 

(m)          Tax Status.            Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company.

 

(n)           No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Notes by any form of general solicitation or general advertising.  The Company has offered the Notes for sale only to the Lender, who is an “accredited investor” within the meaning of Rule 501 under the Securities Act.

 

(o)           Foreign Corrupt Practices.  Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is  in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

2.2           Representations and Warranties of the Lender.  The Lender hereby, represents and warrants as of the date hereof and as of the Closing Date to the Company as follows:

 

(a)           Authority.  Each Transaction Document to which it is a party has been duly executed by such Lender, and when delivered by such Lender in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Lender, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)

 

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insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)           General Solicitation.  The Lender is not purchasing the Note as a result of any advertisement, article, notice or other communication regarding the Note published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

 

(c)           Lender Status.  At the time such Lender was offered the Notes, it was, and as of the date hereof it is, it will be (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.  Such Lender is not required to be registered as a broker-dealer under Section 15 of the Exchange Act.

 

(d)           Experience of Such Lender.  Such Lender, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Notes, and has so evaluated the merits and risks of such investment.  Such Lender is able to bear the economic risk of an investment in the Notes and, at the present time, is able to afford a complete loss of such investment.

 

ARTICLE III. INDEMNIFICATION OF LENDER

 

The Company will indemnify and hold the Lender  (a “Lender Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Lender Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the Lender, or any of its Affiliates, by any stockholder of the Company who is not an Affiliate of the Lender, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of the Lender’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Lender may have with any such stockholder or any violations by the Lender of state or federal securities laws or any conduct by such Lender which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Lender Party in respect of which indemnity may be sought pursuant to this Agreement, such Lender Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Lender Party.  Any Lender Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Lender Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the position of such Lender Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.  The Company will not be liable to any Lender Party under this Agreement (y) for any settlement by a Lender

 

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Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Lender Party’s breach of any of the representations, warranties, covenants or agreements made by such Lender Party in this Agreement or in the other Transaction Documents.

 

ARTICLE IV.

MISCELLANEOUS

 

4.1           Entire Agreement.  The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

4.2           Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

4.3           Amendments; Waivers.  No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed by the Company and the Lender.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

4.4           Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

4.5           Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Lender (other than by merger).

 

4.6           No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section .

 

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4.7           Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York.

 

4.8           Survival.  The representations and warranties shall survive the Closing and the delivery of the Notes for the applicable statue of limitations.

 

4.9           Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

4.10         Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

4.11         Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

 

4.12         Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Loan Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
SYNERGY   PHARMACEUTICALS, INC.
    	
Address   for Notice:
    
	
 
    	
Synergy   Pharmaceuticals, Inc.
    
	
 
    	
420   Lexington Avenue, Suite 1609
    
	
 
    	
New   York, NY 10170
    
	
By:
    	
 
    	
 
    	
Fax: (212) 297-0019
    
	
 
    	
Name:
    	
Gary   S. Jacob
    	
 
    
	
 
    	
Title:
    	
CEO
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
With   a copy to (which shall not constitute notice):
    	
 
    
	
Sichenzia   Ross Friedman Ference LLP
    	
 
    
	
61   Broadway
    	
 
    
	
New   York, NY 10006
    	
 
    
	
Attn:   Jeffrey J. Fessler, Esq.
    	
 
    
					

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR LENDER FOLLOWS]

 

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CONFIDENTIAL INVESTOR QUESTIONNAIRE

 

The Lender represents and warrants that he, she or it comes within one category marked below, and that for any category marked, he, she or it has truthfully set forth, where applicable, the factual basis or reason the Lender comes within that category.  ALL INFORMATION IN RESPONSE TO THIS SECTION WILL BE KEPT STRICTLY CONFIDENTIAL.  The undersigned agrees to furnish any additional information which the Company deems necessary in order to verify the answers set forth below.

 

	
Category   A o
    	
The   undersigned is an individual (not a partnership, corporation, etc.)   whose individual net worth, or joint net worth with his or her spouse,   presently exceeds $1,000,000 (excluding the value of such person’s primary   residence).
    
	
 
    	
 
    
	
Category   B o
    	
The   undersigned is an individual (not a partnership, corporation, etc.) who   had an income in excess of $200,000 in each of the two most recent years, or   joint income with his or her spouse in excess of $300,000 in each of those   years (in each case including foreign income, tax exempt income and full   amount of capital gains and losses but excluding any income of other family   members and any unrealized capital appreciation) and has a reasonable expectation   of reaching the same income level in the current year.
    
	
 
    	
 
    
	
Category   C o
    	
The   undersigned is a director or executive officer of the Company which is   issuing and selling the Notes.
    
	
 
    	
 
    
	
Category   D o
    	
The   undersigned is a bank; a savings and loan association; insurance company;   registered investment company; registered business development company;   licensed small business investment company (“SBIC”); or employee benefit plan   within the meaning of Title 1 of ERISA and (a) the investment decision   is made by a plan fiduciary which is either a bank, savings and loan   association, insurance company or registered investment advisor, or   (b) the plan has total assets in excess of $5,000,000 or (c) is a   self directed plan with investment decisions made solely by persons that are   accredited investors. (describe entity)
    
	
 
    	
 
    
	
 
    	
 
    
	
Category   E o
    	
The   undersigned is a private business development company as defined in section   202(a)(22) of the Investment Advisors Act of 1940. (describe entity)
    
	
 
    	
 
    
	
 
    	
 
    
	
Category   F o
    	
The   undersigned is either a corporation, partnership, Massachusetts business   trust, or non-profit organization within the meaning of   Section 501(c)(3) of the Internal Revenue Code, in each case not   formed for the specific purpose of acquiring the Notes and with total assets   in excess of $5,000,000. (describe entity)
    

 

 

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Category   G o
    	
The   undersigned is a trust with total assets in excess of $5,000,000, not formed   for the specific purpose of acquiring the Notes, where the purchase is   directed by a “sophisticated investor” as defined in Regulation   506(b)(2)(ii) under the Act.
    
	
 
    	
 
    
	
Category   H o
    	
The   undersigned is an entity (other than a trust) in which all of the equity   owners are “accredited investors” within one or more of the above categories.   If relying upon this Category alone, each equity owner must complete a   separate copy of this Agreement. (describe entity)
    
	
 
    	
 
    
	
 
    	
 
    
	
Category   I o
    	
The   undersigned is not within any of the categories above and is therefore not an   accredited investor.
    
	
 
    	
 
    
	
 
    	
The   undersigned agrees that the undersigned will notify the Company at any time   on or prior to the Closing in the event that the representations and   warranties in this Agreement shall cease to be true, accurate and complete.
    
	
 
    	
 
    
	
MANNER IN WHICH NOTE IS TO BE HELD.  (circle one)
    
	
 
    	
 
    
	
 
    	
(a)
    	
Individual   Ownership
    
	
 
    	
(b)
    	
Community   Property
    
	
 
    	
(c)
    	
Joint   Tenant with Right of Survivorship (both parties must sign)
    
	
 
    	
(d)
    	
Partnership*
    
	
 
    	
(e)
    	
Tenants   in Common
    
	
 
    	
(f)
    	
Company*
    
	
 
    	
(g)
    	
Trust*
    
	
 
    	
(h)
    	
Other*
    

 

The undersigned is informed of the significance to the Company of the foregoing representations and answers contained in the Confidential Investor Questionnaire and such answers have been provided under the assumption that the Company will rely on them.

 

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[LENDER SIGNATURE PAGES TO THE SYNERGY PHARMACEUTICALS, INC. LOAN AGREEMENT]

 

IN WITNESS WHEREOF, the undersigned have caused this Loan Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

	
Name   of Lender:
    
	
 
    
	
Signature   of Authorized Signatory of Lender:
    	
 
    	
 
    
	
 
    	
 
    
	
Name   of Authorized Signatory:
    
	
 
    
	
Title   of Authorized Signatory:
    
	
 
    
	
Email Address of Lender:
    	
 
    	
 
    
	
 
    	
 
    
	
Facsimile Number of Lender:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address   for Notice of Lender:
    
							

 

 

Address for Delivery of securities for Lender (if not same as address for notice):

 

 

EIN Number (if applicable):  [PROVIDE THIS UNDER SEPARATE COVER]

 

[SIGNATURE PAGES CONTINUE]

 

13Exhibit 10.58

 

QIHOO 360 TECHNOLOGY CO. LTD.

 

March 14, 2011

 

TB ALTERNATIVE ASSETS LTD.

 

HIGHLAND VII - PRI (2) S.à r.l.

HIGHLAND VIIB - PRI (2) S.à r.l.

HIGHLAND VIIC - PRI (2) S.à r.l.

HIGHLAND ENT VII - PRI (2) S.à r.l.

(collectively, the “Highland Entities”)

 

SEQUOIA CAPITAL CHINA I, L.P.

SEQUOIA CAPITAL CHINA PARTNERS FUND I, L.P.

SEQUOIA CAPITAL CHINA PRINCIPALS FUND I, L.P.

(collectively, the “Sequoia Entities”)

 

CDH NET TECHNOLOGY LIMITED

 

Dear Sirs:

 

This letter agreement is to confirm our agreement relating to the purchase by the investors listed in Schedule A hereof (the “Investors”), of an aggregate of US$50,000,000 of Class A ordinary shares in the form of American depositary shares (“ADS”) as set forth in Schedule A hereof (“Shares”) in Qihoo 360 Technology Co. Ltd., a company incorporated in the Cayman Islands (the “Company”), on the terms and subject to the conditions set forth herein.  The Investors’ purchase of the Shares will be subject to and concurrent with the Company’s initial public offering (the “IPO”) of ADSs each representing such number of Shares as specified in the registration statement on Form F-1 (the “Registration Statement”) that the Company has filed with the U.S. Securities and Exchange Commission (the “Commission”) in connection with the IPO or any amendments thereto.

 

In furtherance of the foregoing, the parties hereto agree as follows:

 

1.            Purchase.  Upon the terms and subject to the conditions of this letter agreement, each Investor shall purchase from the Company, and the Company shall issue, sell and deliver to each Investor, at the Closing (as defined below), the number of Shares (the “Purchased Shares”) equivalent to the subscription amount set forth opposite the name of such Investor in Schedule A hereof (the “ Subscription  Amount”) divided by the initial public offering price of the ADSs specified in the final prospectus filed with the Commission, free and clear of all liens or encumbrances (other than those created by virtue of this letter agreement).  In consideration for the issuance and sale of the Purchased Shares, against delivery thereof to each Investor, and upon the terms and subject to the conditions of this letter agreement, at the Closing, each Investor shall pay or cause to be paid to the Company by wire transfer in immediately available funds in United States dollars to an account designated by the Company an amount equal to the Subscription Amount of such Investor.

 

 

All such sales shall be made (i) on the same terms as the ADSs being offered in the IPO and (ii) pursuant to and in reliance upon Regulation S (“Regulation S”) or pursuant to Section 4(2) under the Securities Act of 1933, as amended (the “Securities Act”).

 

2.            Closing; Conditions.

 

(a)           The closing of the sale and purchase of the Purchased Shares (the “Closing”) shall take place, subject to the conditions set forth in paragraph 2(b) below, concurrently with the consummation of the IPO at Latham & Watkins LLP, Unit 2318, China World Office 2, 1 Jian Guo Men Wai Avenue, Beijing 100004, PRC, or at such other place as the Company and the Investors may mutually agree.

 

(b)           The Closing shall be conditioned upon (i) the consummation of the IPO and the purchase of the ADSs by the underwriters for offer to the public in the IPO at the same purchase price (less any underwriting discounts or commissions) per ADS payable by the Investors hereunder, pursuant to an underwriting agreement to be entered into by and among the Company and several underwriters of the IPO named therein (the “Underwriting Agreement”), and (ii) the execution of a registration rights agreement dated the date hereof between the Company and the Investors (the “Registration Rights Agreement”) and (iii) the fact that no action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental or regulatory authority that would, as of the date of the Closing, prevent the issuance or sale of the Shares; and no injunction or order of any shall have been issued that would, as of the date of the Closing, prevent the issuance or sale of the Shares (iv) with respect to the obligation of the Investors to purchase the Purchased Shares, the representations and warranties of the Company contained herein shall be true and correct on the date hereof and on the date of the Closing, and (v) with respect to the obligation of the Company to allot and sell the Purchased Shares, the representations and warranties of the Investors contained herein shall be true and correct on the date hereof and on the date of the Closing.

 

3.            [Intentionally Omitted].

 

4.             General Representations and Warranties of the Parties.  Each of the Investors, severally but not jointly, and the Company represents and warrants, as of the date hereof and as of the date of the Closing, to the other party hereto as follows:

 

(a)           Such party is an entity duly organized or formed, validly existing and in good standing under the laws of its jurisdiction of organization or formation and has taken all action necessary on the part of such party (and, to the extent applicable, its members, partners or equity holders have taken all necessary required action) for the authorization, execution and delivery of this letter agreement and the performance of all obligations of such party hereunder.

 

(b)           This letter agreement constitutes, and when entered by such party and the other parties thereto, the Registration Rights Agreement (upon its effectiveness) will constitute, a valid and legally binding obligation of such party, enforceable against such party in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies.

 

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(c)           The execution, delivery and performance of this letter agreement does not and will not (i) conflict with or result in any breach of any of, constitute a default under, or result in a violation of any law, rule, regulation or judgment applicable to such party, (ii) conflict with, or result in a breach of the organizational documents of such party, (iii) violate or conflict in any material respect with, or result in a material breach of any provision of, or constitute a material default under, or result in the creation of any material lien or encumbrance upon any of the material assets of such party (other than the Purchased Shares) under, any of the terms, conditions or provisions of any material agreement or other obligation of such party.

 

5.             Representations and Warranties of the Investors.

 

(a) Each Investor, severally but not jointly,  represents and warrants, as of the date hereof and as of the date of the Closing, to the Company as follows:

 

(i)            It has received and reviewed the Registration Statement, including the prospectus therein, with respect to the IPO.

 

(ii)           It does not, directly or indirectly, own more than five per cent 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 FINRA Rule 5130.

 

(iii)          It has received all the information that it considers necessary and appropriate to decide whether to acquire the Purchased Shares hereunder, and it is not relying on any statements or representations made in connection with the transactions contemplated hereby other than representations contained in this letter agreement.

 

(iv)          It is relying solely on its own counsel and other advisors for legal, financial and other advice with respect to this investment or the transactions contemplated by this letter agreement and any related documents, and not on any statements or representations of any of the Company, the underwriters of the IPO, or its or their agents, written or oral, other than the representations made by the Company in this letter agreement.

 

(v)           It acknowledges that the Purchased Shares must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available.

 

(vi)          It is acquiring the Purchased Shares for investment for its own account and not with a view to, or for resale in connection with, any distribution thereof.  Investor understands that the Purchased Shares have not been registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent as expressed herein.

 

(b) Each of the Sequoia Entities and CDH Net Technology Limited, severally but not jointly, represents and warrants, as of the date hereof and as of the date of the Closing, to the Company that it is not a U.S. Person (as defined in Regulation S) and it is acquiring the Purchased Shares in an offshore transaction in reliance on Regulation S.

 

3

 

(c) Each of TB Alternative Assets Ltd. and the Highland Entities, severally but not jointly, represents and warrants, as of the date hereof and as of the date of the Closing, to the Company that it is an “Accredited Investor” within the meaning of Rule 501 of Regulation D under the Securities Act, as presently in effect.

 

6.             Representations and Warranties of the Company.  Except with respect to the representation contained in paragraph 6(b), which shall be made only as of the date of the Closing, the Company represents and warrants, as of the date hereof and as of the date of the Closing, to each Investor as follows:

 

(a)           The Purchased Shares to be issued to each Investor at the Closing pursuant to the terms of this letter agreement have been duly and validly authorized and when such Purchased Shares are issued to the Investor in accordance with the terms of this letter agreement, all of such Purchased Shares will be validly issued, fully paid and non-assessable, and will be delivered to the Investor free and clear of all liens and encumbrances (other than pursuant to this letter agreement).

 

(b)          No directed selling efforts (as defined Regulation S) and no general solicitation or general advertising (as defined in Regulation D under the Securities Act) have been made by the Company, any of its affiliates or any person acting on its behalf with respect to any Purchased Shares that are not registered under the Securities Act; and none of such persons has taken any actions that would result in the sale of the Purchased Shares to the Investors under this letter agreement requiring registration under the Securities Act; and the Company is a “foreign issuer” (as defined in Regulation S).

 

(c)           (i) The prospectus in the form first used to confirm sales of ADSs, and (ii) the Registration Statement if and when declared effective by the Commission, will comply in all material respects with the applicable provisions of the Securities Act and the rules and regulations promulgated thereunder and will not (except for the absence of pricing related information) contain an untrue statement of a material fact and will not omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(d)           Assuming the accuracy of the Investors’ representations and warranties under Sections 4 and 5 of this letter agreement, the offer, sale and issuance of the Purchased Shares as contemplated by this letter agreement is exempt from the qualification, registration and prospectus delivery requirements of the Securities Act and any applicable securities laws.

 

7.             Investor Information.   Each Investor hereby consents and undertakes to promptly provide to the Company information relating to such Investor that is reasonably required by the Company for the purpose of satisfying the disclosure obligations in connection with the Registration Statement and the prospectus therein under applicable laws (the “Investor Information”), regulations and the rules of the New York Stock Exchange.  Each Investor also consents to the inclusion of the Investor Information, the Investor’s name as well as the matters relating to the Investor’s subscription of the Purchased Shares in the Registration Statement and the prospectus therein, and in press releases and other marketing

 

4

 

materials for the IPO.  Additionally, each Investor hereby consents to the filing of this Agreement as an exhibit to the Registration Statement.  Each Investor acknowledges that the Company and others will rely upon the truth and accuracy of the Investor Information, and it agrees to notify the Company promptly in writing if any of the content contained therein ceases to be accurate and complete or becomes misleading.

 

8.             Restrictive Legend.   Each certificate representing the Purchased Shares shall be endorsed with the following legend (in addition to any legend required under applicable state securities laws):

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (AS AMENDED, THE “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 ACT, (2) AN EXEMPTION OR QUALIFICATION UNDER APPLICABLE SECURITIES LAWS OR (3) DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED; AND (B)   WITHIN THE UNITED STATES OR TO ANY U.S. PERSON, AS EACH OF THOSE TERMS IS DEFINED IN REGULATION S UNDER THE ACT, DURING THE 40 DAYS FOLLOWING CLOSING OF THE PURCHASE.  ANY ATTEMPT TO TRANSFER, SELL, PLEDGE OR HYPOTHECATE THIS SECURITY IN VIOLATION OF THESE RESTRICTIONS SHALL BE VOID.

 

9.             Indemnification.  Notwithstanding anything to the contrary in this letter agreement, the Company shall indemnify and hold harmless each Investor and its respective partners, directors, officers and affiliates from and against all losses, costs, claims, damages, liabilities, expenses (including reasonable attorneys’ and accountants’ fees, costs of investigation, costs of suit and costs of appeal), fines and penalties actually incurred arising out of or relating to any breach of the representations and warranties made by the Company herein.

 

10.          Miscellaneous.  The Company shall afford each Investor a reasonable opportunity to review and comment on any description of such Investor and/or the transactions contemplated by this letter agreement that is to be included in the Registration Statement filed after the date hereof, press releases or other marketing materials.

 

Neither this letter agreement nor any provision hereof may be amended, modified or waived except by an instrument in writing signed by the parties hereto.  The failure or delay of any party to enforce or exercise any rights under any of the provisions of this letter agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce or exercise any rights under each and every provision of this letter agreement in accordance with its terms.  The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

This letter agreement contains the full and entire understanding and agreement among the parties hereto with regard to the subject matters hereof and thereof and supersedes 

 

5

 

all prior understandings and agreements, written or oral, relating to the matters set forth herein and therein.  Except for (i) any transfer of Purchased Shares as permitted in paragraph 3(a) of this letter agreement or (ii) any transfer of Purchased Shares by any parties hereto to its respective affiliates or subsidiaries, neither this letter agreement nor any of their rights hereunder shall be assigned by any of the parties hereto without the prior written consent of the other parties.

 

Any term or provision of this letter agreement which is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this letter agreement or affecting the validity or enforceability of any of the terms or provisions of this letter agreement in any other jurisdictions, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

 

This letter agreement and the rights and obligations of the parties hereunder shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York, shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and shall not be construed to inure to the benefit of any other party.  Any dispute arising out of or relating to this letter agreement, including any question regarding its existence, validity or termination (“Dispute”) shall be referred to and finally resolved by arbitration at the Hong Kong International Arbitration Centre in accordance with the UNCITRAL Arbitration Rules.  There shall be three arbitrators.  The language to be used in the arbitration proceedings shall be English.  Each of the parties hereto 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 letter agreement or the transactions contemplated hereby.

 

Except for the representations and warranties of the Company made in paragraph 6(a) hereof, which shall survive indefinitely, each of the representations and warranties of the Company and the Investors contained in this letter agreement shall survive the Closing for a period of one year following the Closing.

 

This letter agreement may be signed in counterparts, each of which shall constitute an original and which together shall constitute one and the same agreement.

 

This letter agreement shall automatically terminate upon the earliest to occur of (i) the written consent of each of the Company and the Investors, (ii) the withdrawal by the Company of the Registration Statement, (iii) following the execution of the Underwriting Agreement, the termination of such Underwriting Agreement in accordance with its terms, or (iv) May 31, 2011, if the closing of the IPO has not occurred on or prior to such date.  Upon such termination, this letter agreement will have no further force or effect, provided that any termination of this letter agreement will not relieve any party for any liability arising from a breach of representation, warranty, covenant or agreement occurring prior to such termination.

 

[remainder of page intentionally left blank]

 

6

 

	
 
    	
Very truly   yours,
    
	
 
    	
 
    
	
 
    	
QIHOO 360   TECHNOLOGY CO. LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Xiangdong Qi
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

[Signature page to Subscription Agreement]

 

 

Agreed and Accepted

as of the date first set forth above

 

 

TB ALTERNATIVE ASSETS LTD.

(on behalf of Trustees of Columbia University in the City of New York)

 

 

	
By: 
    	
/s/[illegible]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature page to Subscription Agreement]

 

8

 

HIGHLAND VII - PRI (2) S.à r.l.

 

 

	
By: 
    	
/s/ Kathleen A.   Barry
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:  
    	
Kathleen A.   Barry
    	
 
    
	
 
    	
Title:  
    	
Class A   Manager
    	
 
    

 

[Signature page to Subscription Agreement]

 

9

 

HIGHLAND VIIB - PRI (2) S.à r.l.

 

 

	
By: 
    	
/s/ Kathleen A.   Barry
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:  
    	
Kathleen A.   Barry
    	
 
    
	
 
    	
Title:  
    	
Class A   Manager
    	
 
    

 

[Signature page to Subscription Agreement]

 

10

 

HIGHLAND VIIC - PRI (2) S.à r.l.

 

 

	
By: 
    	
/s/ Kathleen A.   Barry
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:  
    	
Kathleen A.   Barry
    	
 
    
	
 
    	
Title:  
    	
Class A   Manager
    	
 
    

 

[Signature page to Subscription Agreement]

 

11

 

	
HIGHLAND ENT VII - PRI   (2) S.à r.l.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Kathleen A.   Barry
    	
 
    
	
 
    	
 
    
	
Name: Kathleen   A. Barry
    	
 
    
	
Title:   Class A Manager
    	
 
    
			

 

[Signature page to Subscription Agreement]

 

12

 

	
SEQUOIA CAPITAL CHINA I, L.P.
    	
 
    
	
By:
    	
Sequoia Capital China Management I, L.P.,
    	
 
    
	
 
    	
a Cayman Islands Exempted Limited
    	
 
    
	
 
    	
Partnership, its General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
SC China Holding Limited, a Cayman
    	
 
    
	
 
    	
Islands Limited Liability Company, its
    	
 
    
	
 
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Kok Wai Yee
    	
 
    
	
 
    	
Name: Kok Wai   Yee
    	
 
    
	
 
    	
Title:   Authorized Signatory
    	
 
    

 

[Signature page to Subscription Agreement]

 

13

 

	
SEQUOIA CAPITAL CHINA PARTNERS FUND I, L.P.
    	
 
    
	
By:
    	
Sequoia Capital China Management I, L.P., a 
    	
 
    
	
 
    	
Cayman Islands Exempted Limited
    	
 
    
	
 
    	
Partnership, its General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
SC China Holding Limited, a Cayman
    	
 
    
	
 
    	
Islands Limited Liability Company, its
    	
 
    
	
 
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Kok Wai Yee
    	
 
    
	
 
    	
Name: Kok Wai   Yee
    	
 
    
	
 
    	
Title:   Authorized Signatory
    	
 
    

 

[Signature page to Subscription Agreement]

 

14

 

	
SEQUOIA CAPITAL CHINA PRINCIPALS FUND I, L.P.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
Sequoia Capital China Management I, L.P., a
    	
 
    
	
 
    	
Cayman Islands Exempted Limited Partnership,   its
    	
 
    
	
 
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
SC China Holding Limited, a Cayman
    	
 
    
	
 
    	
Islands Limited Liability Company, its
    	
 
    
	
 
    	
General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Kok Wai Yee
    	
 
    
	
 
    	
Name: Kok Wai   Yee
    	
 
    
	
 
    	
Title:   Authorized Signatory
    	
 
    

 

[Signature page to Subscription Agreement]

 

15

 

	
CDH NET TECHNOLOGY LIMITED
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Gongquan   Wang
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature page to Subscription Agreement]

 

16

 

SCHEDULE A

 

The Investors and Purchased Amount

 

	
Name of Investor
    	
 
    	
Purchased Amount
    	
 
    
	
TB ALTERNATIVE ASSETS LTD. 
    	
 
    	
25,000,000
    	
 
    
	
HIGHLAND VII - PRI (2) S.à r.l. 
    	
 
    	
6,147,991
    	
 
    
	
HIGHLAND VIIB - PRI (2) S.à r.l. 
    	
 
    	
1,489,778
    	
 
    
	
HIGHLAND VIIC - PRI (2) S.à r.l. 
    	
 
    	
2,169,587
    	
 
    
	
HIGHLAND ENT VII - PRI (2) S.à r.l. 
    	
 
    	
192,644
    	
 
    
	
SEQUOIA CAPITAL CHINA I, L.P.  
    	
 
    	
3,938,000
    	
 
    
	
SEQUOIA CAPITAL CHINA PARTNERS FUND I, L.P. 
    	
 
    	
452,500
    	
 
    
	
SEQUOIA CAPITAL CHINA PRINCIPALS FUND I, L.P.
    	
 
    	
609,500
    	
 
    
	
CDH NET TECHNOLOGY LIMITED  
    	
 
    	
10,000,000
    	
 
    
	
Total 
    	
 
    	
50,000,000

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