Document:

Exhibit 10.15

 

Exclusive Option Agreement

 

This Exclusive Option Agreement (this “Agreement”) is executed by and among the following Parties on April 27, 2020 in Beijing, the People’s Republic of China (“China” or the “PRC”, for the purposes of this Agreement, excluding Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region of the People’s Republic of China):

 

Party A:            Beike Jinke (Tianjin) Technology Co., Ltd.

 

Legal representative: FAN Zhuopeng

 

Party B:        Shareholders of Party C as listed in Annex 1 to this Agreement (hereinafter collectively referred to as “Party B” or “Existing Shareholders”)

 

Party C:            Beijing Yiju Taihe Technology Co. Ltd.

 

Legal Representative: WEI Yong

 

In this Agreement, each of Party A, Party B and Party C shall be hereinafter referred to as a “Party” individually, and as the “Parties” collectively.

 

Whereas:

 

(1)         Party B is the shareholders of Party C; Party C’s ownership structure as of the date hereof is as shown in Annex I hereto.

 

(2)         Party B agrees to grant Party A an equity interests option right pursuant to this Agreement, and Party A agrees to accept such option right upon exercise of which to purchase all or part of the equity interests held by Party B in Party C.

 

Now, therefore, upon mutual discussion and negotiation, the Parties have reached the following agreement:

 

Section 1     Sale and Purchase of Equity Interest

 

1.1             Option Granted

 

Existing Shareholders hereby irrevocably grant Party A an irrevocable and exclusive option upon one or more exercise at any time to purchase either by itself or by one or more persons designated by it (each, a “Designee”) the equity interests in Party C then held by Existing Shareholders in part or in whole to the extent permitted by Chinese laws and according to procedures determined at Party A’s sole and absolute discretion and at the price described in Section 1.3 herein (such right being the “Equity Interest Purchase Option”). Except for Party A and the Designee(s), no other person shall be entitled to the Equity Interest Purchase Option or other rights with respect to the equity interests of Existing Shareholders.  Party C hereby agrees to the grant by Existing Shareholders of the Equity Interest Purchase Option to Party A.  The term “person” as used herein shall refer to

 

 

individuals, corporations, partnerships, partners, enterprises, trusts or non-corporate organizations.

 

1.2             Steps for Exercise of the Equity Interest Purchase Option

 

Subject to the provisions of the laws and regulations of China, Party A may exercise the Equity Interest Purchase Option by issuing a written notice to Existing Shareholders (the “Equity Interest Purchase Option Notice”), specifying:(a) Party A or Designee(s)’ decision to exercise the Equity Interest Purchase Option; (b) the portion of equity interests to be purchased by Party A or the Designee from Existing Shareholders (the “Optioned Interests”); and (c) the date for purchasing the Optioned Interests or the date for the transfer of the Optioned Interests.  After the receipt of the Equity Interest Purchase Option Notice, the Existing Shareholders shall transfer all Optioned Interests to Party A and/or the Designee pursuant to such notice and in accordance with the methods described in Section 1.4 of this Agreement.

 

1.3             Equity Interest Purchase Price

 

The total price for the purchase by Party A of all Optioned Interests held by Existing Shareholders in Party C shall be RMB 1 yuan. If at the time when Party A exercises the Equity Interest Purchase Option, the minimum price permitted under PRC law is higher than the aforementioned price, then the purchase price shall be such minimum price permitted by PRC law (collectively, the “Equity Interest Purchase Price”).

 

1.4             Transfer of Optioned Interests

 

For each exercise of the Equity Interest Purchase Option:

 

1.4.1                    Existing Shareholders shall cause Party C to promptly convene a shareholders’ meeting, at which a resolution shall be adopted approving Existing Shareholders’ transfer of the Optioned Interests to Party A and/or the Designee(s);

 

1.4.2                    Existing Shareholders shall obtain written statements from the other shareholders of Party C giving consent to the transfer of the Optioned Interests by Existing Shareholders to Party A and/or the Designee(s) and waiving any right of first refusal with respect thereto;

 

1.4.3                    Existing Shareholders shall execute an equity interest transfer contract in form and content satisfactory to Party A and/or the Designee(s) with respect to each transfer with Party A and/or each Designee (whichever is applicable), in accordance with the provisions of this Agreement and the Equity Interest Purchase Option Notice regarding the Optioned Interests;

 

1.4.4                    Existing Shareholders shall, within thirty (30) days after receipt of the Equity Interest Purchase Option Notice, execute all necessary contracts, agreements or documents with relevant parties, obtain all necessary government approvals and permits, and take all necessary actions, so as to

 

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transfer valid ownership of the Optioned Interests to Party A and/or the Designee(s), unencumbered by any security interests, and cause Party A and/or the Designee(s) to become the registered owner(s) of the Optioned Interests.  For the purpose of this Section and this Agreement, “security interests” shall include securities, mortgages, third party’s rights or interests, any stock options, acquisition right, right of first refusal, right to offset, ownership retention or other security arrangements, but shall be deemed to exclude any security interest created by this Agreement, Existing Shareholders’ Equity Interest Pledge Agreement and Existing Shareholders’ Power of Attorney; “Existing Shareholders’ Equity Interest Pledge Agreement” as used in this Agreement shall refer to the Equity Interest Pledge Agreement executed by and among Party A, Existing Shareholders and Party C on the date hereof and any modification, amendment and restatement thereto.; “Existing Shareholders’ Power of Attorney” as used in this Agreement shall refer to the Power of Attorney executed by Existing Shareholders on the date hereof granting Party A with a power of attorney and any modification, amendment and restatement thereto.

 

Section 2     Covenants

 

1                 2                         2.1           Covenants regarding Party C

 

 Existing Shareholders (as a shareholder of Party C) and Party C hereby severally but not jointly covenant as follows:

 

2.1.1                     Without the prior written consent of Party A, they shall not in any manner supplement, change or amend the articles of association of Party C, increase or decrease its registered capital, or change its structure of registered capital in other manners;

 

2.1.2                     They shall maintain Party C’s corporate existence in accordance with good financial and business standards and practices, obtain and maintain all necessary government licenses and permits by prudently and effectively operating its business and handling its affairs;

 

2.1.3                     Without the prior written consent of Party A, they shall not at any time following the effective date hereof, sell, transfer, mortgage or dispose of in any manner any material assets of Party C with the value exceeding RMB 10,000,000 or legal or beneficial interest in the material business or revenues of Party C, or allow the encumbrance thereon of any security interest;

 

2.1.4                     Without the prior written consent of Party A, they shall not incur, inherit, guarantee or suffer the existence of any debt, except for payables incurred in the ordinary course of business other than through loans;

 

2.1.5                     They shall always operate all of Party C’s businesses within the ordinary course of business to maintain the asset value of Party C and refrain from any action/omission that may affect Party C’s operating status and asset value;

 

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2.1.6                     Without the prior written consent of Party A, they shall not cause Party C to execute any major contract, except the contracts in the ordinary course of business (for the purposes of this Paragraph, “ major contract” refers to a contract with the total amount exceeding RMB 10,000,000);

 

2.1.7                     Without the prior written consent of Party A, they shall not cause Party C to provide any person with any loan or credit;

 

2.1.8                     They shall provide Party A with information on Party C’s business operations and financial condition at Party A’s request;

 

2.1.9                     If requested by Party A, they shall procure and maintain insurance in respect of Party C’s assets and business from an insurance carrier acceptable to Party A, at an amount and type of coverage typical for companies that operate similar businesses;

 

2.1.10              Without the prior written consent of Party A, they shall not cause or permit Party C to merge, consolidate with, acquire or invest in any person;

 

2.1.11              They shall immediately notify Party A of the occurrence or possible occurrence of litigation, arbitration or administrative proceedings relating to Party C’s assets, business or revenue;

 

2.1.12              To maintain the ownership by Party C of all of its assets, they shall execute all necessary or appropriate documents, take all necessary or appropriate actions, file all necessary or appropriate complaints, and raise necessary or appropriate defenses against all claims;

 

2.1.13              Without the prior written consent of Party A, Party C shall not in any manner distribute dividends to its shareholders, provided that upon Party A’s written request, Party C shall immediately distribute all distributable profits to its shareholders;

 

2.1.14              At the request of Party A, they shall appoint any person designated by Party A as the director or senior officer of Party C.

 

2.1.15              Without Party A’s prior written consent, Party C shall not engage in any business in competition with Party A or its affiliates; and

 

2.1.16              Unless otherwise required by PRC law, Party C shall not be dissolved or liquated without prior written consent by Party A;

 

2.1.17              Once PRC laws permits foreign investors to invest in the principal business of Party C in China, with a controlling stake and/or in the form of wholly foreign-owned enterprises, and the competent government authorities of China begin to approve such investments, upon Party A’s exercise of the Equity Interest Purchase Option, Existing Shareholders shall immediately transfer to Party A or the Designee(s) the equity interest in Party C held by

 

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Existing Shareholders and Party C shall assist with the equity transfer procedures.

 

2.1.18              Regarding the covenants applicable to Party C under this Section 2.1, the Existing Shareholders and Party C shall cause Party C ‘s subsidiaries to comply with such covenants where applicable, as if such subsidiaries are Party C under the corresponding provisions.

 

2.2           Covenants of Existing Shareholders

 

Existing Shareholders hereby covenant as follows:

 

2.2.1                      Without the prior written consent of Party A, Existing Shareholders shall not sell, transfer, mortgage or dispose of in any other manner any legal or beneficial interest in the equity interests in Party C held by Existing Shareholders, or allow the encumbrance thereon, except for the interest placed in accordance with Existing Shareholders’ Equity Interest Pledge Agreement, Existing Shareholders’ Power of Attorney and this Agreement;

 

2.2.2                      Without the prior written consent of Party A, Existing Shareholders shall cause the shareholders’ meeting and/or the directors (or the executive director) of Party C not to approve any sale, transfer, mortgage or disposition in any other manner of any legal or beneficial interest in the equity interests in Party C held by Existing Shareholders, or not to allow the imposing of any security interest thereupon, except for the interests placed thereupon in accordance with Existing Shareholders’ Equity Interest Pledge Agreement, Existing Shareholders’ Power of Attorney;

 

2.2.3                      Without the prior written consent of Party A, Existing Shareholders shall cause the shareholders’ meeting or the directors (or the executive director) of Party C not to approve the merger or consolidation with any person, or the acquisition of or investment in any person;

 

2.2.4                      Existing Shareholders shall immediately notify Party A of the occurrence or possible occurrence of any litigation, arbitration or administrative proceedings relating to the equity interests in Party C held by Existing Shareholders;

 

2.2.5                      Existing Shareholders shall cause the shareholders’ meeting or the directors (or the executive director) of Party C to vote in favor of the transfer of the Optioned Interests as set forth in this Agreement and to take any and all other actions that may be requested by Party A;

 

2.2.6                      To the extent necessary to maintain Existing Shareholders’ ownership of equities interests in Party C, Existing Shareholders shall execute all necessary or appropriate documents, take all necessary or appropriate actions, file all necessary or appropriate complaints, and raise necessary or appropriate defenses against all claims;

 

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2.2.7                      Existing Shareholders shall appoint any designee of Party A as the director or senior officer of Party C, at the request of Party A;

 

2.2.8                      Existing Shareholders hereby waive their right of first refusal (if any) with respect to the transfer of equity interests to Party A by other shareholders of Party C, and gives consent to the execution by each of the other shareholders of Party C with Party A and Party C of the exclusive option agreement, the equity interest pledge agreement and the power of attorney similar to this Agreement, Existing Shareholders’ Equity Interest Pledge Agreement and Existing Shareholders’ Power of Attorney, and undertakes not to take any action in conflict with such documents (if any) executed by such other shareholders.

 

2.2.9                      If Existing Shareholders received any profit, interest, dividend or proceeds of liquidation from Party C, Existing Shareholders shall promptly donate all such profit, interest, dividend or proceeds of liquidation to Party A or any other person designated by Party A as permitted by the applicable PRC laws; and

 

2.2.10               Existing Shareholders shall strictly abide by the provisions of this Agreement and other contracts jointly or separately executed by and among Existing Shareholders, Party C and Party A, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability thereof.  To the extent that Existing Shareholders have any remaining rights with respect to the equity interests subject to this Agreement hereunder or under the Existing Shareholders’ Equity Interest Pledge Agreement or under the Existing Shareholders’ Power of Attorney, Existing Shareholders shall not exercise such rights except in accordance with the written instructions of Party A.

 

Section 3     Representations and Warranties

 

3.1.                  Covenants of Existing Shareholders and Party C

 

3.1.1                    They have the power, capacity and authority to execute and deliver this Agreement and any equity interest transfer contracts to which they are parties concerning each transfer of the Optioned Interests as described thereunder (each, a “Transfer Contract”), and to perform their obligations under this Agreement and any Transfer Contracts.  Existing Shareholders and Party C agree to enter into Transfer Contracts consistent with the terms of this Agreement upon Party A’s exercise of the Equity Interest Purchase Option. This Agreement and the Transfer Contracts to which they are parties constitute or will constitute their legal, valid and binding obligations and shall be enforceable against them in accordance with the provisions thereof;

 

3.1.2                    Existing Shareholders and Party C have obtained any and all approvals and consents from the competent government authorities and third parties (if required) for the execution, delivery and performance of this Agreement;

 

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3.1.3                    The execution and delivery of this Agreement or any Transfer Contracts and the obligations under this Agreement or any Transfer Contracts shall not: (i) cause any violation of any applicable laws of China; (ii) be inconsistent with the articles of association, bylaws or other organizational documents of Party C; (iii) cause the violation of any contracts or instruments to which they are a party or which are binding on them, or constitute any breach under any contracts or instruments to which they are a party or which are binding on them; (iv) cause any violation of any condition for the grant and/or continued effectiveness of any licenses or permits issued to either of them; or (v) cause the suspension or revocation of or imposition of additional conditions to any licenses or permits issued to either of them;

 

3.1.4                    Existing Shareholders have the good and marketable title to the equity interests held by it in Party C.  Except for Existing Shareholders’ Equity Interest Pledge Agreement and Existing Shareholders’ Power of Attorney, Existing Shareholders have not placed any security interest on such equity interests;

 

3.1.5                    Party C has the good and marketable title to all of the assets, and has not placed any security interest on the aforementioned assets;

 

3.1.6                    Party C does not have any outstanding debts, except for (i) debt incurred during the ordinary course of business; and (ii) debts disclosed to Party A for which Party A’s written consent has been obtained;

 

3.1.7                    Party C has complied with all laws and regulations in connection with assets acquisition; and

 

3.1.8                    There are no pending or threatened litigation, arbitration or administrative proceedings relating to the equity interests in Party C, assets of Party C or Party C.

 

Section 4     Effective Date and Term

 

This Agreement shall become effective upon execution by the Parties(if an individual, upon execution; if an non-individual, upon seal), and shall terminate upon all equity interests held by Existing Shareholders in Party C have been legally transferred or assigned to Party A and/or any other person designated by Party A in accordance with this Agreement or as otherwise mutually agreed by the Parties.

 

Section 5     Governing Law and Resolution of Disputes

 

5.1            Governing Law

 

The execution, effectiveness, interpretation, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the laws of the PRC.

 

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5.2            Methods of Resolution of Disputes

 

In the event of occurrence of any dispute arising from or with respect to the performance of this Agreement, either Party may submit such dispute to the Beijing Arbitration Commission for arbitration in Beijing in accordance with the arbitration procedures and rules of such arbitration commission effective at that time. The arbitration tribunal shall consist of three arbitrators appointed in accordance with arbitration rules, among which one is appointed by applicant of the arbitration, one is appointed by the respondent of the arbitration and the third one is jointly appointed by the first two arbitrators through consultations or by Beijing Arbitration Commission. The arbitration shall be conducted in a confidential manner. The language of arbitration shall be Chinese. The arbitral award shall be final and binding upon both Parties. Where appropriate, the arbitration tribunal or the arbitrators may, in accordance with the dispute resolution provisions and/or the applicable PRC laws, adjudicate indemnification or injunctive relief (including, without limitation, for the need of the conduct of the business or the compulsory transfer of assets) against the equity interests, assets, property interests or land assets of Party C and its subsidiaries or adjudicate the winding up of Party C and its subsidiaries. In addition, in the period of composition of the arbitral tribunal or if it is appropriate, upon the request of a Party of the dispute, a court of competent jurisdiction, including a PRC court, shall be entitled to impose an interim injunction or other interim relief in aid of the arbitration, and for the purpose of this Paragraph, in addition to the PRC courts, the courts of Hong Kong, the courts of Cayman Islands and the courts of where the major assets of Party C and/or its subsidiaries are located shall also be deemed to have jurisdiction for such above purpose. During the  arbitration period, the Parties shall continue to exercise their rights and shall continue to perform their obligations under this Agreement except for the part under dispute and submitted to arbitration.

 

Section 6     Taxes and Fees

 

Each Party shall undertake their respective taxes incurred or levied thereon in accordance with the laws of China in connection with the preparation and execution of this Agreement.

 

Section 7     Notices

 

7.1           All notices and other communications required to be given pursuant to this Agreement shall be delivered personally, or sent by registered mail, prepaid postage, a commercial courier service or facsimile transmission to the receiving Party with one additional copy delivered via email.  The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

7.1.1                  Notices given by personal delivery (including express services) shall be deemed effectively given on the date of signed receipt;

 

7.1.2                  Notices given by registered mail with postage prepaid shall be deemed effectively given on the fifteenth day following the date indicated on the return receipt;

 

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7.1.3                  Notices given by facsimile transmission shall be deemed effectively given on the date as recorded in the fax. If such facsimile is delivered after 5 p.m. or on a non-business day, the notice shall be deemed to be effectively given on the next business day.

 

7.2           For the purpose of notices, the addresses of the Parties are as described in Annex II hereto:

 

7.3           Any Party may change its address for notices by a notice delivered to the other Parties in accordance with the terms of this Section.

 

Section 8     Confidentiality

 

The Parties acknowledge that the existence and the terms of this Agreement, and any oral or written information exchanged between the Parties in connection with the preparation and performance of this Agreement are regarded as confidential information.  Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of other Parties, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders, directors, employees, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, directors, employees, legal counsels, or financial advisors shall be bound by the confidentiality obligations similar to those set forth in this Section.  Disclosure of any confidential information by the shareholders, director, employees of, or agencies engaged by any Party shall be deemed disclosure of such confidential information by such Party and such Party shall be held liable for breach of this Agreement.

 

Section 9     Further Warranties

 

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

 

Section 10                          Breach of Agreement

 

10.1    If Existing Shareholders or Party C materially breach any provision under this Agreement, Party A is entitled to terminate this Agreement or require Existing Shareholders or Party C to pay compensation for damages. This Section 10 shall not prejudice any other rights of Party A under this Agreement.

 

10.2    Existing Shareholders or Party C shall not terminate or cancel this Agreement in any event unless otherwise required by the applicable laws.

 

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Section 11                          Miscellaneous

 

11.1     Amendments, changes and supplements

 

Any amendment, change and supplement to this Agreement shall be made in the form of a written agreement executed by all Parties.

 

11.2     Entire agreement

 

Except for the amendments, supplements or changes in writing executed after the execution of this Agreement, this Agreement shall constitute the entire agreement reached by and among the Parties hereto with respect to the subject matter hereof, and shall supersede all prior oral and written consultations, representations and contracts reached with respect to the subject matter of this Agreement. The Parties hereby agree that this Agreement, from the effective date hereof, the Exclusive Option Agreement executed by all Parties (except for Beijing Lianjia Real Estate Agency Co., Ltd.) on December 28, 2018 shall be fully terminated and entirely superseded and replaced by this Agreement.

 

11.3     Headings

 

The headings of this Agreement are for convenience only, and shall not be used to interpret, explain or otherwise affect the meanings of the provisions of this Agreement.

 

11.4     Severability

 

In the event that one or several of the provisions of this Agreement are held to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or compromised in any respect.  The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

11.5     Successors

 

This Agreement shall be binding on and inure to the benefits of the respective successors and permitted assignees of each Party.

 

11.6     Survival

 

Any obligations that occurred or that are due in connection with this Agreement before the expiration or early termination of this Agreement shall survive the expiration or early termination thereof. The provisions of Sections 5, 8, 10 and this Section 11.6 shall survive the termination of this Agreement.

 

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11.7     Waivers

 

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

 

11.8     Language

 

This Agreement is written in Chinese in multiple copies, with each copy having the same legal effects.

 

[The Reminder of This Page is Intentionally Left Blank. Signature Pages Follow.]

 

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IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

Beike Jinke (Tianjin) Technology Co., Ltd. (Seal)

 

 

	
By:
    	
/s/ FAN Zhuopeng
    	
 
    
	
Name: FAN Zhuopeng
    
	
Title: Legal Representative
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

ZUO Hui

 

 

	
By:
    	
/s/ ZUO Hui
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

SHAN Yigang

 

 

	
By:
    	
/s/ SHAN   Yigang
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

XU Wan’gang

 

 

	
By:
    	
/s/ XU   Wan’gang
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

DANG Jie

 

 

	
By:
    	
/s/ DANG   Jie
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

DU Xin

 

 

	
By:
    	
/s/ DU Xin
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

CHEN Rong

 

 

	
By:
    	
/s/ CHEN   Rong
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

RUAN Guangjie

 

 

	
By:
    	
/s/ RUAN   Guangjie
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

GAO Jun

 

 

	
By:
    	
/s/ GAO Jun
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

Tianjin Gaotong Business Consulting Co., Ltd. (Seal)

 

 

	
By:
    	
/s/ (Seal)
    	
 
    
	
Name:
    	
 
    
	
Title:   Authorised Representative
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

Tianjin Juge Business Consulting Partnership (Limited Partnership) (Seal)

 

 

	
By:
    	
/s/ (Seal)
    	
 
    
	
Name:
    	
 
    
	
Title:   Authorised Representative
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

Tianjin Jingchuang Business Consulting Partnership (Limited Partnership)

(Seal)

 

 

	
By:
    	
/s/ (Seal)
    	
 
    
	
Name:
    	
 
    
	
Title:   Authorised Representative
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

Tianjin Jingda Business Consulting Partnership (Limited Partnership)

(Seal)

 

 

	
By:
    	
/s/ (Seal)
    	
 
    
	
Name:
    	
 
    
	
Title:   Authorised Representative
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

Tianjin Mingchen Business Consulting Partnership (Limited Partnership) (Seal)

 

 

	
By:
    	
/s/ (Seal)
    	
 
    
	
Name:
    	
 
    
	
Title:   Authorised Representative
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

Tianjin Jurui Business Consulting Partnership (Limited Partnership) (Seal)

 

 

	
By:
    	
/s/ (Seal)
    	
 
    
	
Name:
    	
 
    
	
Title:   Authorised Representative
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

Tianjin Chuangtian Business Consulting Partnership (Limited Partnership) (Seal)

 

 

	
By:
    	
/s/ (Seal)
    	
 
    
	
Name:
    	
 
    
	
Title:   Authorised Representative
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

Tianjin Fuxun Business Consulting Partnership (Limited Partnership) (Seal)

 

 

	
By:
    	
/s/ (Seal)
    	
 
    
	
Name:
    	
 
    
	
Title:   Authorised Representative
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

Beijing Lianjia Real Estate Agency Co., Ltd. (Seal)

 

 

	
By:
    	
/s/ PENG   Yongdong
    	
 
    
	
Name: PENG Yongdong
    	
 
    
	
Title:    Legal Representative
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Option Agreement on the date as first mentioned above, which shall take effects in accordance with provisions hereof.

 

 

Beijing Yiju Taihe Technology Co., Ltd. (Seal)

 

 

	
By:
    	
/s/ WEI   Yong
    	
 
    
	
Name: WEI Yong
    	
 
    
	
Title: Legal   Representative
    	
 
    

 

Signature Page to Exclusive Option Agreement

 

 

Annex I: Party C’s Ownership Structure

 

	
Shareholder
    	
 
    	
Subscribed
   Registered
   Capital (RMB)
    	
 
    	
Shareholding
   Percentage
    	
 
    
	
ZUO Hui
    	
 
    	
18,950,000
    	
 
    	
2.5365
    	
%
    
	
Tianjin Gaotong Business Consulting Co., Ltd.
    	
 
    	
69,022,335
    	
 
    	
9.2388
    	
%
    
	
Tianjin Juge Business Consulting Partnership   (Limited Partnership)
    	
 
    	
5,968,681
    	
 
    	
0.7989
    	
%
    
	
Tianjin Jingchuang Business Consulting Partnership   (Limited Partnership)
    	
 
    	
7,212,370
    	
 
    	
0.9654
    	
%
    
	
Tianjin Jingda Business Consulting Partnership   (Limited Partnership)
    	
 
    	
7,580,000
    	
 
    	
1.0146
    	
%
    
	
Tianjin Mingchen Business Consulting Partnership   (Limited Partnership)
    	
 
    	
1,793,496
    	
 
    	
0.2401
    	
%
    
	
Tianjin Jurui Business Consulting Partnership   (Limited Partnership)
    	
 
    	
5,167,286
    	
 
    	
0.6917
    	
%
    
	
SHAN Yigang
    	
 
    	
5,235,696
    	
 
    	
0.7008
    	
%
    
	
DANG Jie
    	
 
    	
720,998
    	
 
    	
0.0965
    	
%
    
	
XU Wan’gang
    	
 
    	
2,428,897
    	
 
    	
0.3251
    	
%
    
	
GAO Jun
    	
 
    	
2,299,877
    	
 
    	
0.3078
    	
%
    
	
Tianjin Chuangtian Business Consulting Partnership (Limited   Partnership)
    	
 
    	
16,299,662
    	
 
    	
2.1818
    	
%
    
	
Tianjin Fuxun Business Consulting Partnership   (Limited Partnership)
    	
 
    	
946,298
    	
 
    	
0.1267
    	
%
    
	
DU Xin
    	
 
    	
3,027,332
    	
 
    	
0.4052
    	
%
    
	
CHEN Rong
    	
 
    	
355,776
    	
 
    	
0.0476
    	
%
    
	
RUAN Guangjie
    	
 
    	
80,159
    	
 
    	
0.0107
    	
%
    
	
Beijing Lianjia Real Estate Agency Co., Ltd.
    	
 
    	
600,000,000
    	
 
    	
80.3117
    	
%
    
	
Total
    	
 
    	
747,088,863
    	
 
    	
100.0000
    	
%
    

 

Annex I

 

Annex II Address for Notices

 

To Each Party:

 

Address: Building 1, Yard 9, Jiuxianqiao East Road, Chaoyang

 

District, Beijing

 

Tel.: *********** (WANG Qingsong); *********** (GUO Shanshan)

 

Email: ***********; ***********
 Contact person: WANG Qingsong; GUO Shanshan

 

Annex IIExhibit 10.16

 

THE SYMBOL “[***]” DENOTES PLACES WHERE CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (i) NOT MATERIAL, AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

STRATEGIC COOPERATION FRAMEWORK AGREEMENT

 

This Strategic Cooperation Framework Agreement (this “Agreement”) is made by the following parties in Nanshan District, Shenzhen, PRC on December 28, 2018:

 

(1)              Shenzhen Tencent Computer Systems Co., Ltd. (深圳市腾讯计算机系统有限公司), a company incorporated in accordance with the laws of the PRC, whose registered address is at 5th — 10th Floor, Feiyada Building, No.1 South Road, High Tech Zone, Nanshan District, Shenzhen (“Tencent Computer”);

 

(2)              KE Holdings Inc., a company incorporated in accordance with the laws of Cayman Islands, whose registered address is at Harneys Fiduciary (Cayman) Limited, 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman, KY1-1002, Cayman Islands (“LJ Cayman”);

 

(3)              Jinbei (Tianjin) Technology Co., Ltd. (金贝(天津)技术有限公司), a company incorporated in accordance with the laws of the PRC, whose registered address is at No.28, Room 212, 2nd Floor, Office Building C, Nangang Industrial Multiple Service Zone, Economy and Technology Development, Tianjin (“LJ WFOE”);

 

(4)              Tianjin Xiaowu Information & Technology Co., Ltd. (天津小屋信息科技有限公司), a company incorporated in accordance with the laws of the PRC, whose registered address is at No.59, Room 112, 1st Floor, Office Building C, Nangang Industrial Multiple Service Zone, Economy and Technology Development, Tianjin (“Tianjin Xiaowu”); and

 

(5)              Beijing Lianjian Real Estate Brokerage Co., Ltd. (北京链家房地产经纪有限公司), a company incorporated in accordance with the laws of the PRC, whose registered address is at Room 610, No. 16 Building, No. 5, Yard, Jiangtai Road, Chaoyang District, Beijing (“Beijing LJ Broker”, together with LJ WFOE and Tianjin Xiaowu, collectively, “LJ China”, LJ China and LJ Cayman, collectively referred to as the “LJ Entities”, each a “LJ Entity”).

 

Tencent Computer and LJ Entities are each referred to as a “Party”, and collectively referred to as the “Parties”.

 

WHEREAS:

 

(1)              Tencent (as defined below) is one of the largest internet services providers in the PRC, and is one of the internet enterprises that serve the largest number of users in the PRC.

 

(2)              LJ Group (as defined below) is the operator of a leading platform in the real estate and lifestyle service industry in the PRC, which conducts new property, second hand property, property rental, real estate brokerage, decoration and Franchising (as defined below) business (“LJ’s Principal Business”) and operates www.lianjia.com, www.ke.com and other operation platforms and APPs that are related to LJ’s Principal Business.

 

(3)              On November 8, 2018, Tencent Mobility Limited, Parallel Galaxy Investment Limited and LJ Cayman and certain other parties thereto entered into a Share Purchase Agreement (as defined below), pursuant to which, Tencent Mobility Limited and Parallel Galaxy Investment Limited agree to subscribe for an aggregate number of 42,105,263 Series D Preferred Shares of LJ Cayman.

 

1

 

(4)              The Parties intend to increase the competitive advantages of LJ Group both in online and offline areas and to expand the user base of LJ Group by the strategic cooperation contemplated in this Agreement.

 

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the Parties agree as follows in respect of the strategic cooperation:

 

1                     DEFINITION AND INTERPRETATION

 

1.1           Definition

 

Unless otherwise provides or defined in the Agreement, the following terms shall have the following respective meanings:

 

	
“Confidential Information”
    	
means: (i) any non-public material that is   related to incorporation, business, technology, investment, finance, trade,   transaction or matters of any Party , whether it is in writing, oral, or   other forms, (ii) the existence and content of this Agreement, the terms   of any other agreements made in accordance with this Agreement; and   (iii) any material that is marked to be confidential by a Party, or any   materials that contain any Confidential Information.
    
	
 
    	
 
    
	
“Force Majeure”
    	
means any event that cannot be reasonably controlled   by any Party (including strikes, suspension or other conduct in the industry,   act of God, war or war threats, accident, intentional riots, breakdown or interruption   of settlement system, suspension or interruption of bank or any other event   that is deemed as a Force Majeure event according to international business   customs).
    
	
 
    	
 
    
	
“Restructuring Memorandum”
    	
means the Beike Group Restructuring Plan set forth   in Exhibit I attached to the Share Purchase Agreement or other   relevant written agreements concluded by Tencent and LJ Group (if any).
    
	
 
    	
 
    
	
“Restructuring Agreement”
    	
means the Framework Agreement on Onshore and   Offshore Restructuring Transactions of Beike Group made by Beijing LJ Broker,   Beijing Boheng Taihe Advertising Co., Ltd., Tianjin Xiaowu, LJ Cayman   and certain other parties thereto on December 5, 2018.
    
	
 
    	
 
    
	
“Restructuring”
    	
means the relevant provisions in the Restructuring   Memorandum and the Restructuring Agreement.
    
	
 
    	
 
    
	
“Business Day”
    	
means a day that is not a Saturday, Sunday or any   statutory public holiday in the PRC.
    

 

2

 

	
“Affiliate”
    	
in respect of a certain entity, means any other   entity that, directly, or indirectly, through one or more intermediaries,   Controls, is Controlled by, or is under common Control with such entity; in   the case of a natural person, means the close relative of such person,   including, such person’s parents, spouse, adult children and their respective   spouse, siblings and their respective spouse.
    
	
 
    	
 
    
	
“Share Purchase Agreement”
    	
means the Series D Preferred Shares Purchase   Agreement made by Tencent Mobility Limited, Parallel Galaxy Investment   Limited, LJ Cayman and certain other parties thereto in respect of   subscription of Series D preferred shares of LJ Cayman on   November 8, 2018.
    
	
 
    	
 
    
	
“Series D Purchase Price”
    	
means the Series D Purchase Price as defined in   the Share Purchase Agreement.
    
	
 
    	
 
    
	
“Transaction Documents”
    	
means the Transaction Documents as defined in the   Share Purchase Agreement. This Agreement is a part of Transaction Documents.
    
	
 
    	
 
    
	
“Control”
    	
in case of relationship between two or more   entities, means the power or authority, whether exercised or not, to direct   the business, matters, management and policies of such entity, directly or   indirectly, whether through ownership of shares, voting rights, voting   securities, by contract, contractual arrangements, trust or otherwise,   including, (i) having more than fifty (50%) of issued and outstanding   shares or equity interests in such entity, directly or indirectly;   (ii) having more than fifty percent (50%) of the votes rights of such   entity, directly or indirectly; or (iii) power to control the composition   of a majority of the board of directors or similar authority of such entity,   directly or indirectly. The terms “Controlled” and “under common Control”   have meanings correlative to the foregoing.
    
	
 
    	
 
    
	
“Effective Date”
    	
means the effective date of this Agreement. This   Agreement shall become effective upon the Closing under the Share Purchase   Agreement simultaneously. The Effective Date hereof shall be the Closing Date   under the Share Purchase Agreement.
    
	
 
    	
 
    
	
“Applicable Laws”
    	
means, in the case of any person, all applicable   laws, regulations, rules, instructions, treaties, judgements, orders,   notices, decrees and judicial interpretations of the any governmental agency,   regulatory authority and securities exchange commissions.
    

 

3

 

	
“Restricted Persons”
    	
means the Restricted Persons as defined in the   Transaction Documents.
    
	
 
    	
 
    
	
“Franchising”
    	
means the enterprise having operation recourses,   such as trademark, logo, patent, and know-how (the “Franchisor”)   contractually licenses such operation resources to other business operators   (the “Franchisee”), whereby the Franchisee   operate its business under the same business model in accordance with the   franchise agreement and in return, the Franchisee pays certain fees to   Franchisor. For the purpose of this Agreement, the Franchising business   operated by LJ Group set forth in this Agreement refers to the second-hand   real estate brokerage business under the brand of De You (德佑)   conducted by Shanghai Lianjia Real Estate Brokerage Co., Ltd.
    
	
 
    	
 
    
	
“Tencent”
    	
means TENCENT HOLDINGS LIMITED and its Affiliates   Controlled by it (may refer to as one or several companies, subject to the   provisions of this Agreement).
    
	
 
    	
 
    
	
“LJ Group”
    	
means LJ Cayman and its Controlled Affiliates,   Beijing LJ Broker and its subsidiaries, Beijing Boheng Taihe Advertising   Co., Ltd. and its subsidiaries, Tianjin Xiaowu Information &   Technology Co., Ltd. and its subsidiaries (it can be referred to as one   or several companies, subject to the provisions of this Agreement). For the   avoidance of doubt, this definition shall include any entity that becomes the   Affiliate Controlled by LJ Cayman, the subsidiary of Beijing LJ Broker,   Beijing Boheng Taihe Advertising Co., Ltd., or Tianjin Xiaowu Information &   Technology Co., Ltd. after execution of this Agreement.
    
	
 
    	
 
    
	
“LJ Platform”
    	
means Lianjia’s website (www.lianjia.com), Beike’s   website (www.ke.com) and the mobile applications, Weixin Official Accounts,   Weixin Mini Programs and other related platforms in connection with LJ’s   Principal Business operated by LJ Group, including any self-owned platform   and website created by LJ China in accordance with this Agreement (if there   is any change to any domain name or mobile application in connection with LJ Platform   after this Agreement becomes effective, this definition shall include such   new websites and mobile applications. For the avoidance of any doubt, such   change shall include but not limited to change of name, supplementing or   amending any websites or mobile applications that is similar or identical in   nature or function to that of the original websites or mobile applications).
    
	
 
    	
 
    
	
“Weixin”
    	
means the cross-platform communication tool provided   by Tencent in the PRC, supporting real time communication between two or   multiple individuals via text, voice messages, pictures and videos, including   functions and services such as Weixin Official Account, and Weixin open   platform, etc. (excluding WeChat, the international version).
    

 

4

 

	
“Weixin Pay Entry Point”
    	
means the service entry points on Weixin Pay’s   existing interface; for example, the entry point of ‘Movies, Shows and   Matches’ on the Weixin Pay interface of the current version of Weixin APP   (iOS 6.7.3) is one of the Weixin Pay Entry Points. For the purpose of this   Agreement, the category name (such as “Movies, Shows and Matches”) is subject   to adjustment. Tencent reserves the right to adjust relevant details in   accordance with its business needs at any time, such as the category name,   logo and the specific location and interface of the Weixin Pay Entry Points.
    
	
 
    	
 
    
	
“Weixin   Pay”
    	
means the payment solution available on Weixin, with   multiple means of payment such as scanning of QR code, in-APP payment, Weixin   Official Account payment and other methods developed by Weixin after   execution of this Agreement.
    
	
 
    	
 
    
	
“Function   Placement”
    	
means the navigation bar on top of Household Channel   on QQ.com, which is set forth in the Part A of Exhibit B   attached to this Agreement as of the date hereof.
    
	
 
    	
 
    
	
“Advertising   Placement”
    	
means the modules for placing advertisements on the   page of the Household Channel on QQ.com.
    
	
 
    	
 
    
	
“Content   Placement”
    	
means the spaces and modules other than function   modules and advertising modules on the page of the Household Channel on   QQ.com.
    
	
 
    	
 
    
	
“Content Page”
    	
means every level of page via the Content   Placement.
    
	
 
    	
 
    
	
“QQ.com”
    	
means the web portal (http://www.qq.com) operated by   Tencent.
    
	
 
    	
 
    
	
“QQ.com Channel”
    	
means on QQ.com, the page that can be accessed   by the categorized items shown on the navigation bar of the home page of   QQ.com. For example, the page that can be accessed by “News” on the   navigation bar of the home page of QQ.com is one of the QQ.com Channels.   The name of each channel, such as “News”, is subject to the category of such   item. Tencent reserves the right to adjust relevant details in accordance   with its business needs at any time, such as the category name, logo,   navigation bar and the specific location and interface of each QQ.com   Channel.
    

 

5

 

	
“Tencent News APP”
    	
means the news application operated by Tencent, such   as the current ‘Tencent News’ APP (iOS and Android versions).
    
	
 
    	
 
    
	
“Tencent News APP Channel”
    	
means the pages that can be accessed by the   categorized items shown on the multiple levels of the navigation bar on the   interface of Tencent News APP. For example, the page of “Videos” under   the “Channels” in the current version of Tencent News APP (iOS 5.6.81) is one   of the Tencent News APP Channels. For the purpose of this Agreement, all   websites on Tencent News APP Channels shall be placed on servers provided on   Tencent, under the domain name of qq.com. The name of each item, such as   “Channels” and “Videos, is subject to the category of such item. Tencent   reserves the right to adjust relevant details in accordance with its business   needs at any time, such as the category name, logo, navigation bar and the   specific location and interface of Tencent News APP Channels.
    
	
 
    	
 
    
	
“Term”
    	
means the term of this Agreement, namely,   (i) the termination date of the Business Cooperation, or (ii) the   earlier date pursuant to the provisions in respect of early termination in   this Agreement.
    
	
 
    	
 
    
	
“PRC”
    	
the People of Republic of China, which, for purposes   of this agreement only, does not include the Hong Kong Special Administrative   Region, the Macau Special Administrative Region or Taiwan.
    

 

1.2           Interpretation

 

In this Agreement, except as otherwise expressly provided:

 

(1)             The headings of articles hereof are inserted for convenience only and neither limit nor amplify the provisions of this Agreement;

 

(2)             “including” means “including without limitation”; and

 

(3)             The “month” or “year” referred to herein is from a certain day in that month or that year to the same day in the following month or year.

 

2                     COOPERATION

 

2.1           The Parties agree that Tencent will provide LJ China with the access for the Weixin Pay Entry Point, relevant QQ.com Channels or their respective entry points, Tencent News APP Channels, and Tencent will provide advertising and Tencent Cloud services to LJ China (the “Business Cooperation”) pursuant to the Tencent Cooperation Plan and Principles set out in Exhibit A. The Business Cooperation shall be deemed as the in-kind contribution in respect of the Series D Purchase Price payable by Tencent. The details on the cooperation term and commencement date of the aforementioned matters are set out in Exhibit A hereto. The Parties agree to negotiate in good faith to resolve relevant issues if there is any change to the original cooperation resources during the Term of the Business Cooperation.

 

6

 

2.2           In terms of the Business Cooperation, if LJ China intends to register or use any software, product, function, interface (including but not limited to Weixin, QQ.com and Tencent News APP) and any form of the Intellectual Property developed, owned or operated by Tencent, LJ China shall conform with all Tencent’s agreements and rules in connection with such software, product, function and interface, including without limitation, the service agreement, sole function agreement and operation principles.

 

2.3           Each of the LJ Entities agrees and covenants to use Weixin Pay as the default payment method for any payment made by their users on the relevant online product platforms operated by LJ Group. Each of the LJ Entities further covenants that (i) it will cause Weixin Pay to appear with priority to other payment methods (i.e. sticky) in respect of payment functions on the relevant online product platforms operated by LJ Group with marks as “Recommended” or other similar words or marks; and (ii) it will display other payment methods in the form agreed by the Parties. For the purpose of protection of the option right of users, each of the users may, at his/her own discretion, select his/her preferred payment method. LJ Group shall not fold or hide Weixin Pay on the check-out page of its online products platforms by any means for any reason. LJ Group shall cause Weixin Pay to appear with priority to other payment methods in all relevant advertising materials in connection with payment used by its offline stores. LJ Group shall conform with the framework standards of Weixin to complete the construction and display of payment methods when conducting its business on the Weixin platforms (including without limitation, Weixin Pay Entry Point, Weixin Official Accounts, and Weixin Mini Programs), so as to maintain the level of users’ experience and secure the stability of connection systems.

 

2.4           Subject to the provisions in Section 2.3, during the Term of the Business Cooperation, LJ Group may use the payment method exclusively owned and used by LJ Group (the “LJ’s Own Payment Method”) as the default payment method on the relevant online product platforms operated by LJ Group. LJ Group shall cause the LJ’s Own Payment Method to appear with priority to other payment methods in respect of payment page on the relevant online product platforms operated by LJ Group with marks as “Recommended” or other similar words, and cause Weixin Pay to be the second priority in the payment methods and be marked as “Recommended” or other similar words. Other payment methods shall be displayed in the form agreed by the Parties. LJ Group may cause LJ’s Own Payment Method to appear with priority to other payment methods and recommend users to use it in all relevant advertising materials in connection with payment used by its offline stores. Notwithstanding the forgoing, LJ Group shall cause Weixin Pay to appear with priority to other payment methods (other than LJ’s Own Payment Method) and recommend users to use Weixin Pay in such materials. The forgoing is referred to as the Self-Owned Payment Arrangement. Given prior to execution of this Agreement, Caifutong Payment Technology Co., Ltd. (财付通支付科技有限公司) and Beijing Lifangtong Payment Technology Co., Ltd. (北京理房通支付科技有限公司) entered into an Cooperation Agreement and a Supplementary Agreement to the Cooperation Agreement on October 30, 2018, whereby the parties thereto reach an agreement in respect of payment arrangement, such as default payment method, priority of payment methods and adding “Recommended” marks (the “Original Agreement”). The Parties agree to perform their respective obligations in respect of the payment arrangement under the Original Agreement during the term of the Original Agreement. Upon the expiration of the Original Agreement, the Parties shall perform their respective obligations in respect of the Self-Owned Payment Arrangement under this Section 2.4 or other arrangement otherwise agreed by the Parties. Notwithstanding the forgoing in Section 2.4, the Parties acknowledge that if there is any conflict between the written agreement otherwise made by Tencent Computer (or its Affiliates) and LJ Entities (or its Affiliates) and the provisions in this Section 2.4, the former written agreement made by Tencent Computer (or its Affiliates) and LJ Entities (or its Affiliates) shall prevail.

 

7

 

2.5           Within three (3) years after the Effective Date, if LJ Group intends to use any cloud services, it shall use Tencent Cloud with priority, provided that the overall cooperation terms and conditions provided by Tencent Cloud to LJ Group is not less favourable than those provided by other third parties. Tencent Cloud services include without limitation public cloud, internet infrastructure, public internet broadband, personalized servers, security components, software structure and related operation and maintenance services.

 

2.6           Without the prior written consent of Tencent, LJ China shall not:

 

(1)             license or sub-license any technology for entry point, security agreement, certificate, technology plan or technical information in connection with the business cooperation contemplated hereunder to any third party or use such information for any purpose other than for the purpose of the business cooperation contemplated hereunder, whether directly or indirectly;

 

(2)             disclose either the technology plan or technical information owned by Tencent to any third party;

 

(3)             provide any product or service (including but not limited to trademarks, websites, texts, images, audios, videos and tables) provided by Tencent (including but not limited to Tencent Computer) in connection with the Business Cooperation to any third party or license any third party, in any means, to use such products or services; or

 

(4)             use any materials on users obtained from the business cooperation contemplated hereunder for any purpose other than for the purpose of the business cooperation contemplated hereunder (including but not limited to sending to users any information or notices that are irrelevant to the products and services purchased by the users) or disclose such materials to any third party.

 

For the avoidance of doubt, LJ China may disclose such information to any entity of the LJ Group, provided, however, that such disclosure is limited to the extent necessary and any of the receiving parties are under the confidentiality obligations similar to those of LJ China.

 

2.7           The Parties hereby acknowledge that, upon execution of this Agreement (including all exhibits hereto), the obligations of in-kind contributions under the Share Purchase Agreement shall be deemed to be fully performed by Tencent. Tencent shall have full rights and ownership of the purchased shares under the Share Purchase Agreement and its ownership of such shares shall not be affected by any amendment, performance, expiration or termination of this Agreement. If this Agreement is terminated earlier and the Parties have any issue on indemnification, the Parties shall resolve such issue in accordance with the relevant provisions in the Share Purchase Agreement and this Agreement.

 

2.8           Unless otherwise agreed by the Parties, the Parties or their respective Affiliates shall refer to the Tencent Cooperation Plan and Principles and sign a detailed cooperation agreement or other written documentation for the Business Cooperation (the “Specified Business Cooperation Agreement”).

 

2.9           Each of the LJ Entities covenants that it has obtained the relevant qualifications for the provision of the products and services in respect of the Business Cooperation to users or other third parties and will not infringe any interest of Tencent, users or any third parties. LJ Entities will be responsible for all obligations and liabilities arising from such claims and indemnify and hold harmless Tencent, users of Tencent and other parties from and against any and all losses suffered by such party.

 

8

 

2.10    The Parties acknowledge that LJ Group is in the process of Restructuring and the PRC entities in the LJ Group (other than LJ China) (the “LJ New Operation Entities”, each, a “LJ New Operation Entity”) will participate in the Business Cooperation with Tencent, provided that it is approved by Tencent in writing. Each of the LJ Entities shall cause each of LJ New Operation Entities to become a party of this Agreement and the Specified Business Cooperation Agreement and perform the obligations performed by the relevant LJ Entities under such agreements, where Tencent shall provide necessary cooperation (if necessary, including cooperation with the execution of a joinder agreement by the LJ New Operation Entity approved by Tencent).

 

3                     REPRESENTATIONS, WARRANTIES AND COVENANTS

 

3.1           Each Party represents and warrants to the other Parties that as of the execution date of this Agreement:

 

(1)             Such Party is legally incorporated and existing in accordance with the Applicable Laws of the place of its incorporation, and has the full power and authorizations to sign, deliver and perform this Agreement and to implement the cooperation contemplated hereunder;

 

(2)             The execution and delivery of this Agreement by such Party and the implementation of the cooperation contemplated hereunder have been properly authorized by the governance authorization of this Party. The execution, delivery and performance of this Agreement by such Party does not violate or contravene the provisions of its organizational documents nor does it violate or contravene any Applicable Laws on its assets, businesses or properties; and

 

(3)             This Agreement shall constitute legal, effective and binding obligations on such Party provided that such Party properly authorizes, signs and delivers this Agreement.

 

3.2           The Parties shall cooperate with each other to ensure the Business Cooperation contemplated hereunder are carried out in legitimate manners.

 

4                     CONFIDENTIALITY

 

4.1           General Obligations

 

Each Party hereby undertakes to other Parties that it will not disclose any Confidential Information to any third party without the consent of said Parties.

 

4.2           Exceptions

 

The provisions of Section 4.1 do not apply under any of the following circumstances:

 

(1)             A Party may disclose the Confidential Information to its directors, current or future partners, shareholders, senior officers, employees, consultants, auditors, or professional consultants (collectively referred to as “Representatives”) for the purpose of performance of this Agreement, provided that such Representatives is bounded by the same confidentiality obligations applicable to the disclosing Party;

 

9

 

(2)             A Party may disclose the Confidential Information that has become known to public or entered into the public domain, provided that the publication of such disclosure is not resulted from violation of this Agreement by any of the disclosing Party or its Representative;

 

(3)             A Party may disclose the Confidential Information to its Affiliates; and

 

(4)             A Party may disclose the Confidential Information according to the Applicable Laws or rules of any stock exchange where the securities of the Party or its parent company are listed for trading, the requirements of any judicial or regulatory procedures, or requirements of the litigation or other proceedings in connection with this Agreement, provided that the disclosing Party notifies other Parties in advance and limit the scope of the disclosure to the extent as required by the relevant rules, laws and procedures, and such disclosing Party is subject to any practicable confidentiality arrangement.

 

4.3           Notwithstanding the provisions of Section 4.2 above, the Parties shall cooperate with each other to adjust or re-sign this Agreement and other Business Cooperation agreements to ensure that fulfillment of obligations under the Section 4.1, to the maximum extent of the satisfaction of necessary disclosure requirements, subject to the relevant regulations and rules and provided that the rights and obligations of the Parties are not changed.

 

5                     NOTICE

 

5.1           Form of Notice

 

All notices under this Agreement (“Notice”) shall be made:

(1)                in writing;

(2)                in Chinese; and

(3)             Delivered to the address or email address of the recipient as specified in Section 5.3, by hand or via a well-known domestic express delivery service, or delivered to other address or email address as notified by the recipient no later than five (5) Business Days before sending the notice.

 

5.2           Service

 

The Notice shall be deemed to be formally served under the following circumstances unless an earlier delivery is proved by evidence:

 

(1)             When hand delivered to the other Party, upon the delivery to the address as set out in Section 5.3;

 

(2)             When delivered by a well-known domestic express delivery service provider, three (3) Business Days after delivery; and

 

(3)             If sent via email, upon confirmation of delivery from the receiving Party by email or any other methods.

 

5.3           Contact

 

To Tencent:

 

Address: Tencent Binhai Building, No. 33 Haitian Second Road, Nanshan District, Shenzhen, Guangdong, China

Zip Code: 518064

Attn: ****************

Email: ****************

 

10

 

Copy to:

Address: Tencent Binhai Building, No. 33 Haitian Second Road, Nanshan District, Shenzhen, Guangdong, China

Zip Code: 518064

Attn: ****************

Email: ****************

 

To LJ Entities:

 

Address: Building 16, No.5 Courtyard, Jutai Road, Chaoyang District, Beijing

Attn: ****************

Email: ****************

 

6                     EFFECTIVENESS, AMENDMENTS AND TERMINATION

 

6.1           This Agreement shall be duly executed by the Parties (in the case of onshore entities, with the seal of such entity; in the case of offshore entities, with the signature of authorized signatory) and become effective on the Effective Date.

 

6.2           This Agreement shall be terminated upon:

 

(1)              mutual agreement by the Parties; or

(2)              the expiration date where the Parties fail to reach an agreement on extension.

 

6.3           Upon the occurrence of any of the following events, Tencent Computer shall be entitled terminate the relevant Business Cooperation by written notice to LJ Entities:

 

(1)             if, during the Term of cooperation, any of the LJ Entities breaches applicable laws, regulations, policies or requirements of any governmental authority or regulatory authority in any material respects, or breaches any relevant platform principle, service agreement, sole function agreement or operation standards of Tencent, or materially breaches any obligation hereunder, or materially infringes any interest of any third party, or causes material damages to Tencent due to its misconduct, or causes adversely material impact on the publicity, brand or reputation of Tencent, and fails to rectify or eliminate such effect within the period reasonably specified by Tencent;

(2)             any of the LJ Entities materially breaches any provisions of this Agreement or the Specified Business Cooperation Agreement and fails to rectify such breach within the period specified by Tencent;

(3)             any suspension of the matters on the Business Cooperation more than ninety (90) days or any other period of time otherwise agreed by the Parties pursuant to Section 6.4 hereof.

 

6.4           Upon the occurrence of any of the following events, Tencent Computer may notify the relevant LJ Entities in writing to suspend all or part of the matters on the Business Cooperation (at the sole discretion of Tencent, the period of suspension shall be excluded from the calculation of the applicable period of the Business Cooperation). The Parties shall not restart the suspended cooperation under this Agreement until LJ has resolved the relevant issues or performed its obligations pursuant to applicable Transaction Agreements to the reasonable satisfactory of Tencent (the applicable period of the Business Cooperation shall be extended accordingly. For the avoidance of doubt, if any BusinessCooperation matter is suspended more than ninety (90) days or any other period of time otherwise agreed by the Parties, Tencent shall be entitled to terminate the relevant Business Cooperation in accordance with Section 6.3):

 

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(1)             any of the LJ Entities materially breaches any provision of the Share Purchase Agreement (including the Restructuring Memorandum) or Restructuring Agreement and such entity fails to rectify such breach within the period required by Tencent;

(2)             the LJ Entities fail to complete the Restructuring pursuant to the Share Purchase Agreement (including the Restructuring Memorandum) or Restructuring Agreement and fail to rectify within the period of time agreed by Tencent;

(3)             any of the LJ Entities breaches the provisions on the Restricted Persons under the Transaction Documents; or

(4)             the occurrence of any of the Liquidation Event, Trade Sale or Redemption Triggering Event under the Transaction Documents.

 

6.5           Upon the occurrence of any of the following events, the Parties shall negotiate in good faith to resolve the relevant issues:

 

(a)             any cooperated business under this Agreement is unable to continue due to any applicable laws, regulations, policies, requirements imposed by the applicable governmental authority or regulatory authority or any governmental conduct; or

(b)             if any of the Force Majeure lasts more than six (6) months and the Party affected by such Force Majeure is unable to perform its principal obligations hereunder.

 

6.6           If this Agreement is terminated or suspended pursuant to Section 6.3 or Section 6.4, unless otherwise agreed in the Specified Business Cooperation Agreement, the Specified Business Cooperation Agreement shall be deemed to be terminated or suspended simultaneously.

 

6.7           Unless otherwise agreed by the Parties, all rights and obligations of the Parties under this Agreement shall terminate upon the termination of this Agreement, provided that:

 

(1)             The termination of this Agreement shall not affect the obligations and liabilities existed prior to the termination of this Agreement; and

(2)             Section 4 (Confidentiality), Section 5 (Notice), Section 7 (Liability of Breach of Contract), and Section 8 (Governing Law and Dispute Resolution) shall survive any termination of this Agreement.

 

7                     LIABILITY OF BREACH OF CONTRACT

 

7.1                     If a Party fails to perform any of its obligations hereunder, such Party (the “Defaulting Party”) shall be deemed as breach of contract. The Defaulting Party shall rectify such breach within ten (10) Business Days upon receipt of notice stating the details on breach of contract from the other Party (the “Non-defaulting Party”) or other longer period of time otherwise agreed by the Non-defaulting Party. If the Defaulting Party fails to rectify such breach with such prescribed period of time, the Defaulting Party shall indemnify the Non-defaulting Party from any actual losses incurred by the Non-defaulting Party, without limiting the Non-defaulting Party’s rights to obtain other remedies hereunder.

7.2                     If Tencent breaches any provision by cancelling the Weixin Pay Entry Point, QQ.com Channels or its portals, or Tencent News APP Channel portal opened by LJ China, Tencent shall be liable for breach of contract to LJ Entities.

7.3                     The Parties hereto acknowledge and agree that such Party signs this Agreement on behalf of itself or its respective Affiliates and is obliged to cause and procure its respective Affiliates to conform with and perform this Agreement.

 

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8                     GOVERNING LAW AND DISPUTE RESOLUTION

 

8.1                     Governing Law

 

The conclusion, validity, interpretation and implementation of this Agreement shall be governed by and interpreted in accordance with the Applicable Laws of PRC.

 

8.2                     Dispute Resolution

 

(1)             If there is any dispute, conflict or claim arising out of or related to this Agreement (including but not limited to: (i) any contractual, pre-contract or non-contractual rights, obligations or liabilities; and (ii) the conclusion, effectiveness and termination of this Agreement) (the “Disputes”), the Disputes shall be settled by the representative of each Party through friendly negotiation.

(2)             If the Dispute is resolved through negotiations within fifteen (15) days from the date of occurrence of the Dispute, no Party can claim against the other Parties for the losses it suffered due to the Dispute. If the Dispute fails to be resolved within fifteen (15) days from the date of occurrence of the Dispute in accordance with the above Section 8.2 (i), the Parties agree to submit the Dispute to the China International Economic and Trade Arbitration Commission in Beijing for exclusive and final resolution. The arbitration shall be conducted in accordance with the commission’s arbitration rules in effects when the dispute is submitted for arbitration, and the arbitration rules shall be deemed to be incorporated into this Agreement by reference. The arbitration award shall be final and binding upon the Parties. Unless otherwise ruled by the arbitration award, the arbitration fees shall be borne by the losing Party.

(3)             The Parties agree that, without prejudice to the right of the Parties to bring the Dispute to arbitration in accordance with the above section, prior to the Dispute is being resolved through negotiations between the Parties or is being arbitrated by the arbitration tribunal, the Parties shall continue to perform their respective obligations under this Agreement, unless otherwise adjudicated by the arbitration tribunal or it is determined that the continuous performance is impossible considering the situation of the Dispute.

 

9                     MISCELLANEOUS

 

9.1           Independent Contracting Party

 

During the performance of this Agreement, the contracting Parties hereto are independent from each other, and no contents of this Agreement shall be interpreted to have created any other relationship between the Parties, including agency, partnership and employment relationship. Neither Party has any right or power to impose any obligations on or act on behalf of the other Parties. Neither Party may claim itself as the manager, partner, employee, nor agent of the other Parties due to existence of this Agreement, the cooperation contemplated hereunder or for any other reasons.

 

9.2           Severability

 

If any provision of this Agreement is determined to be invalid or ineffective under any  Applicable Laws, such provision shall be deemed to be invalid or ineffective only to the extent necessary, and the Parties shall immediately negotiate in good faith to reach consensus to revise the invalid or ineffective provision in the manner permitted by laws so as to achieve the original commercial purpose of the invalid or ineffective provision. If any provision under this Agreement becomes invalid, illegal or unenforceable, the validity of the remaining provisions shall not be affected.

 

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9.3           Assignment

 

Without the prior written consent of Tencent Computer, none of the LJ Entities can assign all or any part of its rights or obligations under this Agreement to any third Party. Any such assignment or attempted assignment in violation of this Article shall be invalid.

 

9.4           Fees

 

Unless as otherwise expressly stipulated in this Agreement or otherwise expressly agreed by the Parties in writing, each Party shall bear its own fees and expenses incurred in connection with negotiation, preparation, execution and implementation of this Agreement and all other documents referred in this Agreement.

 

9.5           Supplement and Amendment

 

Any supplement and amendment to this Agreement can only be made in writing and shall take effects after being signed or affixed with the official seal by the authorized representatives of the Parties.

 

9.6           Waiver

 

Except as otherwise provided in this Agreement, any failure or delay in the exercise of any right or remedy described in this Agreement or granted by Applicable Laws does not impair such right or remedy, or constitute a waiver of such right or remedy, or constitute waiver of any other rights or remedies. The sole or partial exercise of any right or remedy described in this Agreement or granted by Applicable Laws does not prevent the further exercise of such right or remedy or the exercise of any other rights or remedies.

 

9.7           Non-exclusive Relief

 

The rights and remedies granted to the Parties under this Agreement are cumulative and do not prevent other rights or remedies to which they are entitled under the Applicable Laws.

 

9.8           Counterparts

 

This Agreement is signed in multiple counterparts. Each executed and delivered copy is an original copy and shall have same legal effects.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

14

 

IN WITNESS WHEREOF, the Parties to this Agreement have caused their respective duly authorized representatives to sign this Agreement on the date as first mentioned above.

 

	
 
    	
Shenzhen Tencent Computer System Co., Ltd.   (Seal)
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shenzhen Tencent Computer System   Co., Ltd.
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

15

 

IN WITNESS WHEREOF, the Parties to this Agreement have caused their respective duly authorized representatives to sign this Agreement on the date as first mentioned above.

 

 

	
 
    	
KE Holdings Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ ZUO Hui
    
	
 
    	
Name: ZUO Hui
    
	
 
    	
Title: Director
    
	
 
    	
 
    
	
 
    	
Jinbei (Tianjin) Technology Co., Ltd. (Seal)
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jinbei (Tianjin) Technology Co., Ltd.
    
	
 
    	
Name: (Seal)
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Tianjin Xiaowu Information & Technology   Co., Ltd. (Seal)
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tianjin Xiaowu Information &   Technology Co., Ltd. (Seal)
    
	
 
    	
Name: (Seal)
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Beijing Lianjian Real Estate Brokerage   Co., Ltd. (Seal)
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Beijing Lianjian Real Estate Brokerage   Co., Ltd. (Seal)
    
	
 
    	
Name: (Seal)
    
	
 
    	
Title:
    

 

16

 

Exhibit A

Tencent Cooperation Plan and Principles

 

[***]

 

 

Exhibit B

Function Placement/Function Modules

 

[***]

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