Document:

raymondcheungemploymentc

Exhibit 10.1  NeoPhoconics (China) Co., Ltd.  Labor Contract  Printed in May 2011    Employer: (hereinafter referred to as Party A)                          Employee: (hereinafter referred to as Party B)  Name: NeoPhoconics (China) Co., Ltd.                                    Name: CHEUNG, CHI YUE                                          Type of Corporation: Hong Kong Invested                               Gender: Male   Age: 49  Address: NeoPhotonics Building, 8 Keji                                   ID Card ( Passport ) No.H0714306401  South 12th Road, South Hi-Tech Industry                                  Park, Shen Zhen  Legal Representative:Timothy S.Jenks                                   Domicile:Shenzhen  TEL:0755-26748225                                                               Registered Permanent Residence : Hong Kong  In accordance with the Labor Law of the People's Republic of China, Labor Contract Law of the  People's Republic of China and Regulations of Shenzhen Economic Zone on Labor Contract, as well as  other relevant laws and regulations, the Parties enter into this contract based on the principles of legality,  justice, equality, free will, negotiated consensus and good faith.  Type, Term and Probation Period of Labor Contract  Article 1  The Parties agree to determine the type, term and probation period of the labor contract  according to the second methods:  1. This contract is a fixed term contract, and the effective date of the contract is  from_________to_________ including a probation period of_________ months.   2. This contract is a non-fixed term contract, the effective date of the contract will be  from July 1, 2016.  3. The term of this contract shall be based on the completion of a certain work task..  The symbol of completing work task is _________. Or otherwise agreed by both parties  in writing, indicating the work tasks to be completed by Party B and indicating the  completion of work tasks.  Work Cope and Workplace  Article 2  Party B agrees to work on the position of Chief Operating Officer, based on the  business needs of Party A. The location of work is in Shenzhen Economic Zone,  provided that Party B may be on business trips in and out of China.  

 

The specific jobs and duties of Party B's position shall be determined according to the  position duties specified in the rules and regulations of Party A or otherwise agreed by  both parties.  If Party A reaches an agreement through consultation with Party B, Party A will have  the right to adjust the job position, duties and working location of Party B in accordance  with the needs of the operation and management.  Article 3  Party B shall, based on the requirements of Party A, conduct the stipulated quantity of  work on time and meet the stipulated quality standards.  During the labor contract valid period between the Parties, without Party A's written  permission, Party B shall not be employed by any other company, nor shall he provide  paid services for any other company, nor shall he be engaged in any business activity  (except for non-business investment activities such as purchasing valuable securities  and investment funds during his/her non-working time).  Labor Remuneration  Article 4  Party B shall have the right to obtain labor remuneration deserved after Party B  normally attends work and performs normal work. The wage calculation and payment  method set forth in the preceding clause (1) shall be implemented for the position of  Party B. (Salary payable prior to tax, monetary unit is RMB)  1. Monthly salary form: the salaries for Party B's normal working hours see the salary  adjustment list, of which the salaries for the probation period are RMB_____per month,  post allowance is RMB_____, service allowance is RMB_____, skill allowance is  RMB_____ and management allowance is RMB_____. If Party A arranges Party B to  work overtime, Party A shall pay overtime wages or arrange overtime leave for Party  B in accordance with the law on the basis of 1 RMB/hour for Party B's normal working  hours.   2. Time formula: Party B's wage for normal working hours shall be RMB_____/hour,  of which the probation period shall be RMB_____/month. The wage for normal  working hours shall be RMB_____/month. The wage for normal working hours shall  not be lower than the national minimum wage standard. If the minimum wage standard  is adjusted, the adjusted standard shall prevail. If Party A arranges for Party B to work  overtime, Party A shall pay overtime wages to Party B in accordance with law based  on the wages in the normal working hours (for overtime work during the probation  period, the corresponding wages during the probation period shall be used as the base).  3. Party B's lump sum salary is RMB_____/month (the salary for the probation period  is RMB_____ /month). Such lump sum wage shall include wage for normal working  hours and overtime wage, but the converted wage for normal working hours shall not  be lower than the minimum wage announced by the Shenzhen Government in the  current year.  4.Other forms of: wages  

 

Party A shall be entitled (but not obliged) to increase the remuneration of Party B in  accordance with its normal salary adjustment system. Party A shall have the right to  adjust the labor remuneration of Party B in accordance with the salary system for the  Party B's position upon an agreement with Party A between Party A and Party B.  Party A shall be entitled to deduct and withhold the individual income tax, social  insurance premium and other taxes that Party B shall undertake from Party B's  remuneration directly in accordance with the law.  Article 5  Party A shall pay Party B wages in the form of currency on a monthly basis. In principle,  the 7th day of the month shall be the pay day for the previous month, and under special  circumstances, it shall not be later than the 15th day of the same month.  Article 6  When Party A extends Party B's working hours, requests Party B to work on off days  or statutory holidays, Party A shall arrange compensatory time-off for Party B or pay  corresponding labor remuneration.  Working Hours, Off Days and Vacations  Article 7  Party A carries out a working hour system of 8 working hours a day and 40 working  hours a week. Party A shall reasonably arrange Party B's rest and vacation time  according to relevant laws and regulations and company's rules. The specific working  hours and off hours for Party B each day shall be implemented according to Party A's  rules and regulations and/or specific arrangement of Party A.  Article 8  Due to business needs, Party A requests Party B to extend Party B's working hours or  to work overtime on holidays, Party B shall obey Party A's uniform arrangement; Party  A shall pay Party B overtime remuneration according to relevant laws and regulations  to ensure the lawful rights and interests of Party B.  Article 9  Overtime work shall be confirmed and approved by Party A, otherwise Party B shall  not be deemed as overtime work, and Party B shall not be entitled to overtime  remuneration.  Article 10  Party B shall be entitled to statutory holidays, annual leave, marriage leave, maternity  leave, compassionate leave and other vacations according to the laws.  Labor Protection, Working Conditions and Protections Against Occupational Hazard  Article 11  Party A shall provide Party B with a labor condition and a safe and healthy work  environment in conformity with relevant national, provincial and municipal provisions  on labor protection and provide Party B with necessary labor protection articles in  accordance with the characteristics of enterprise production and operation and relevant  provisions. Party B shall wear the said labor protection articles strictly as required and  cooperate with Party A in all labor protection work.  Party A shall provide female employees and juvenile employees with special labor  protection in accordance with relevant national, provincial and municipal laws and  regulations.  

 

Article 12  Party A shall, in accordance with law, perform its obligation of informing Party B of  any position that may cause occupational hazards and shall prevent occupational  hazards during work; Party B shall strictly observe relevant operation procedures and  safety system, etc., and actively cooperate with Party A in the prevention of  occupational hazards.  Article 13  Party A shall provide Party B with necessary education and training on professional  skills, safety and sanitation, rules and regulations, etc. Party B shall seriously  participate in the necessary education and training organized by Party A.  Social Insurance  Article 14  Parties shall participate in social insurance and pay social insurance premium according  to relevant laws and regulations of the state, province and Shenzhen.  Labor Discipline  Article 15  Party B shall conscientiously abide by the laws, regulations, stipulations, normative  documents and professional ethics effectively implemented by the state, province and  city, and vindicate Party A's reputation and interests. Party A shall be entitled to check  and supervise Party B's fulfillment of obligations and provide reward/punishment in  accordance with the relevant regulations.  Article 16  Party A shall establish and improve various internal rules and regulations in  accordance with the law. Party A shall publicize or inform the employees the set or  changed internal rules and regulations of Party A, Party B shall obey strictly.  Article 17  Without Party A's agreement, Party B shall not engage in any second occupation or  activity which conflict with the interest of Party A. For the purpose of protecting Party  A's business secrets and intellectual property rights, Party A may request Party B to  sign a non-competition agreement with Party A during the validity or termination of  the labor contract and may stipulate that Party B shall comply with such agreement  within the non-competition period after the termination or expiration of the labor  contract.  Article 18  Party B shall strictly keep Party A's business secrets and respect Party A's intellectual  property right. Party B shall obey any written or unwritten non-disclosure regulations,  rules and regulations, and fulfill the non-disclosure obligations related to his/her  position. The non-disclosure obligations of Party B shall not be eliminated, reduced, or  exempted due to the termination or expiration of the labor contract between Party A  and Party B. The non-disclosure period for the non-disclosure or non-disclosure of  Party A's business secrets that Party B has known or has access to during the term of  employment shall continue until Party A announces that the secret or information is  declassified, or the confidential information is actually open to the public (except for  the disclose or disclosure made by Party B without authorized authorization). For job  needs, Party A can negotiate and sign a non-disclosure agreement with Party B, and  Party B shall strictly obey this non-disclosure agreement concluded with Party A.  Party A and Party B hereof confirm that to strictly keep Party A's business secrets and  respect Party A's intellectual property right is the most basic professional ethics of Party  

 

B. Any violation of this non-disclosure regulation by Party B shall constitute a serious  breach of the rules and regulations of the employer, and Party B shall compensate all  losses (including direct losses, indirect losses, actual losses, and loss of anticipated  profit) of Party A due to his/her breach of this confidentiality regulation.  Meanwhile, Party B agrees that Party A has taken into full consideration of Party B's  non-disclosure obligation during and after the termination of employment at the time  of determining the salary of Party B. The non-disclosure fee is included in the salary  of Party B. Therefore, Party A shall not be obligated to pay any non-disclosure fee to  Party B during and after the termination of employment with Party B.  Article 19  Party A shall have the right to impose disciplinary and/or economic punishment on  Party B or even terminate the Contract in accordance with relevant national, provincial  and municipal regulations and rules and regulations of the employer in the event that  Party B violates labor disciplines or rules and regulations of the employer.  Termination and Expiration of the Labor Contract  Article 20  Termination of the labor contract means the legal action which, after the conclusion of  the labor contract and before the full performance of the contract, causes one or both  parties to terminate the labor relations in advance due to certain reasons.  Article 21  Party A and Party B hereof have the right to terminate the Labor Contract in accordance  with the provisions of the state, provincial or municipal laws, regulations and rules that  apply to both parties. In case either party terminates the contract in violation of the  provisions and rules, such party shall compensate the other party financially and  compensate the other party economically.  Article 22  Party A has the right to terminate the Labor Contract without paying any advance notice  deposit or economic compensation to Party B under any of the following  circumstances:  1. During the probationary period, Party B is proved not to meet the employing  requirements;  2 . Party B seriously violates Party A's rules and regulations;  3. Party B seriously neglects his duty, engages in embezzlement, and causes severe  losses to Party A's interests;  4. Party B concurrently establishes an employment with other employer (s), severely  hampering his/her ability to complete his/her duties with Party A, or Party B refuses to  rectify the matter following a request to do so by Party A;  5. Labor Contract is deemed null and void as a result of the use of fraud, coercion or  exploitation of the unfavorable position of the other party, resulting in the conclusion  or modification of the Labor Contract against the true intentions of the other party; or  6 . Party B is being pursued for criminal liabilities.  Party A and Party B hereof agree that, if Party B violates the national, provincial or  municipal regulations or the rules and regulations of Party A, which would give rise to  

 

the penalty of expulsion, dismissal or termination of the labor contract against Party B,  Party B's violation shall be regarded as a material violation of the rules and regulations  of the State, province or city.  Article 23  The labor contract shall expire under any of the following circumstances:  1. The term of the labor contract expires;  2. Party B has started to enjoy basic pension insurance treatment;  3. Party B dies, or is declared dead, deceased, or missing by the People's Court;  4. Party A is declared bankrupt or bankrupt in accordance with the law;  5. Party A's business license is revoked, or Party A is ordered to close or is closed  down, or Party A determines to dissolve before the schedule; or  6 . Other circumstances stipulated by the law, or regulations  Party A and Party B hereof agree that, if Party B is still employed by Party A but the  labor contract between the Parties has not yet been terminated after the expiration of  the labor contract, this contract will continue to be binding to both parties except the  agreed upon term of contract until the parties have not renewed this contract or notified  the other party of termination of the labor contract.  Article 24  Party B shall hand over the job to Party B according to the agreement by both parties  or the relevant regulations and requirements of Party A, if the Parties intend to  terminate or terminate this contract. Party A shall issue a written certificate to Party B  and make the file and social insurance transfer procedures for Party B according to the  law.  Liability for Breach of Contract  Article 25  The breaching party shall assume the liability for compensation in accordance with the  laws, decrees and relevant regulations of national, provincial and city if any loss or  damage occurs to the other party due to breach of this contract.  Article 26  In addition, the Parties agree on the following liability for breach of contract:  1. Before signing the labor contract, Party B shall disclose to Party A his or her basic  information that directly relates to this labor contract and the situation obtained from  Party B by Party A. Party A shall have the right to immediately terminate this labor  contract and terminate this labor contract if the personal information and materials  provided by Party B are found untrue. Party A shall have the right to deem that Party  B is proved to be unqualified for this job and terminate this labor contract immediately.  2. If Party B intends to terminate this labor contract during the term of the labor contract  subject to providing 30 days' prior notification to Party A in writing. However, Party B  fails to comply with such notification, Party B shall compensate Party A for all the  losses resulting from such termination (such losses include but are not limited to the  direct and indirect losses resulting from the inconveniences of Party A's operations and  management resulted from Party B's abrupt departure, recruitment and training fees  

 

incurred by Party A in case of temporarily recruiting any other person or persons in  lieu of Party B's position, etc.); If it is difficult to calculate the loss accurately, the  compensation payable to Party A shall be equivalent to one month salary of Party B  (refers to the average monthly salary of Party B for the 12 months prior to the  departure).  Other Matters Agreed upon by the Parties  Article 27  The rules and regulations of Party A (including but not limited to the Employee  Handbook,    responsibilities and safety standards of posts, etc.), the Training and  Service Agreement, Non-disclosure Agreement and any other agreements or  documents related to the Labor Contract signed or agreed upon by the Parties during  the existence of the Labor Contract shall constitute main appendix of the Labor  Contract and shall have the same legal force as the terms and conditions hereof.  Article 28  Party B confirms that when Party A recruits Party B, Party A has truthfully informed  Party B of the job description, working conditions, working location, occupational  hazards, conditions of safety production, labor remuneration and other information  requested by Party B.  Article 29  The current laws and regulations shall prevail if there are items not covered by this  contract or any terms hereof that are in conflict with current laws and regulations.  Settlement of Labor Dispute  Article 30  If there is any dispute arising from the contract or have labor dispute between the  Parties, it should first be resolved through amicable negotiation. If the negotiation fails,  either party can submit the dispute to the Labor Dispute Arbitration Committee at Party  A's location for labor arbitration. Both parties must comply with the arbitration award  if both parties agree to it. If either party disagrees with the arbitration award, it can file  a lawsuit in the People's Court at Party A's location.  Supplementary Provisions  Article 31  IN WITNESS WHEREOF, the parties have executed this contract in duplicate with  each Party hold one copy. The Contract shall take effect upon signing (or sealing) by  the Parties.      Seal of Party A                                                                                     Signature of Party B  Seal of Representative                                                                           Fingerprint of Party B    Date of Signing the Contract: June 13, 2016    

 

Signed by: Tim Jenks  /s/Tim Jenks  Dated: June 13, 2016    Signed by: Raymond Cheung  /s/ Raymond Cheung  Dated: June 13, 2016           I have received one set of each of the materials listed in the following two items:  I 、 Labor Contract:  II 、 Agreement on Confidentiality of Trade Secrets and Intellectual Property Ownership  Receipt: Date:feng-ex410c_261.htm

 

                                                       

Exhibit 4.10C

 

Equity Pledge Agreement 

 

of 

 

Beijing Chenhuan Technology Co., Ltd.

 

by and among

 

Chen Ming

 

He Yansheng

 

and 

 

Qie Yi You (Beijing) Information Technology Co., Ltd.

 

 

May 7, 2021

 

 

 

 

 

Equity Pledge Agreement

This Equity Pledge Agreement (the “Agreement”) is entered into by the following parties on May 7, 2021 in Beijing, the People’s Republic of China (“PRC” or “China”):

 

	
(1)
	
Chen Ming

 

	
(2)
	
He Yansheng

 

(Chen Ming and He Yansheng are referred to hereinafter individually as a “Pledger” and collectively as “Pledgers”)

 

and

 

	
(3)
	
Qie Yi You (Beijing) Information Technology Co., Ltd.(“Pledgee”)

 

Each of the foregoing parties is referred to hereinafter individually as a “Party” and collectively as “Parties”. 

 

WHEREAS:

 

	
(1)
	
Pledgers are shareholders on record of Beijing Chenhuan Technology Co., Ltd. (the “Company”, with its registered address at #3-71 Building No. 6 Ronghui Plaza, Linkong Economic Zone, Shunyi District, Beijing, China and its legal representative being Chen Ming) holding all the equity interest in the Company (the “Company Equity”); and as of the date hereof, the amount of capital contributed and the percentage of shares held by each Pledger in the registered capital of the Company are set forth in Exhibit 1 hereto;

 

	
(2)
	
Pursuant to the Loan Agreement dated March 30, 2021 by and between Pledgee and Pledgers (the “Loan Agreement”), Pledgee advanced a loan in the aggregate amount of RMB1.5 million to Pledgers;

 

	
(3)
	
Pursuant to the Exclusive Equity Option Agreement dated May 7, 2021 by and among Pledgers, Pledgee and the Company (the “Equity Option Agreement”), Pledgers shall at Pledgee’s request transfer their equity interests in the Company, in whole or in part, to Pledgee and/or its designated entity or individual to the extent permitted by the PRC Law;

 

	
(4)
	
Pursuant to the Voting Right Entrust Agreement dated May 7, 2021 by and among Pledgee, the Company and Pledgers (the “Voting Right Entrust Agreement”), certain individuals designated by Pledgee have been fully entrusted by Pledgers to exercise on their behalf all the voting rights Pledgers enjoy as shareholders of the Company;

 

 

 

	
(5)
	
Pursuant to the Exclusive Technical Consulting and Service Agreement dated May 7, 2021 by and between Pledgee and the Company (the “Service Agreement”), Pledgee has been engaged by the Company exclusively to provide the Company with relevant technical license and technical support services, for which the Company will pay Pledgee corresponding license and services fees; and

 

	
(6)
	
as a collateral security for the performance of the Contractual Obligations (defined below) by Pledgers and the Company and for the discharge of the Secured Liabilities (defined below), Pledgers agree to pledge all the Company Equity held by Pledgers to Pledgee and give Pledgee a first priority right of compensation. 

 

NOW, THEREFORE, the Parties have agreed as follows upon friendly consultation: 

 

 

ARTICLE ONE DEFINITION

 

	
1.1
	
Unless otherwise interpreted pursuant to the terms or context herein, each of the terms used herein shall have the meaning ascribed to it below:

 

“Contractual Obligations” shall mean all contractual obligations of Pledgers under the Equity Option Agreement, the Voting Right Entrust Agreement, the Loan Agreement, and this Agreement as well as all contractual obligations of the Company under the Equity Option Agreement, the Voting Right Entrust Agreement, and the Service Agreement.

 

“Event of Default” shall mean any of the following event: (i) any breach by any Pledger of any of its Contractual Obligations under the Equity Option Agreement, the Loan Agreement, the Voting Right Entrust Agreement, or this Agreement; (ii) any breach by the Company of any of its Contractual Obligations under the Equity Option Agreement, the Voting Right Entrust Agreement or the Service Agreement; or (iii) any of the Equity Option Agreement, the Loan Agreement, the Voting Right Entrust Agreement, the Service Agreement or this Agreement is rendered invalid or unenforceable on account of change(s) to any PRC Law or the promulgation of new PRC Law(s) or otherwise and no alternative arrangement can be found by Pledgee for the realization of its purposes under the Transaction Documents.

 

“Equity Pledge” shall have the meaning ascribed to it in Section 2.2 hereof.

 

“Secured Liabilities” shall mean any and all direct, indirect, incidental losses and loss of foreseeable profit of Pledgee as a result of any Event of Default of 

 

 

Pledger(s) and/or the Company, the amount of which may to be determined by Pledgee in its absolute discretion to the extent permitted by the PRC Laws and to which Pledger(s) shall be subject, as well as all costs and expenses incurred by Pledgee in enforcing the Contractual Obligations of Pledger(s) and/or the Company.

 

“Collateral” shall mean all the Company Equity which Pledgers legally hold as of the date hereof and will pledge to Pledgee pursuant to this Agreement as a collateral security for the performance of the Contractual Obligations by Pledgers and the Company (the specific equity interests of each Pledger to be so pledged are set forth in Exhibit 1 thereto), as well as additional capital contributions made and dividends distributed pursuant to Sections 2.6 and 2.7 hereof.  

 

“PRC Law” shall mean the then current PRC laws, regulations, rules, local stipulations, interpretations and other normative documents with binding force.

 

“Power of Attorney” shall have the meaning ascribed to it in Section 12.12 hereof. 

 

“Rights” shall have the meaning ascribed to it in Section 12.7 hereof. 

 

“Transaction Documents” shall mean the Equity Option Agreement, the Loan Agreement, the Voting Right Entrust Agreement and the Service Agreement.

 

	
1.2
	
Any reference herein to any PRC Law shall be deemed: 

 

	
 
	
(1)
	
to include amendments, revisions, additions and updates to such PRC Law, whether enacted prior to or after the execution of this Agreement; and 

 

	
 
	
(2)
	
to include other decisions, notices and rules promulgated or enacted in accordance with the provisions of such PRC Law. 

 

	
1.3
	
Unless otherwise stated herein, references to articles, sections, subsections and paragraphs herein shall mean Articles, Sections, Subsections and Paragraphs of this Agreement.

 

 

 

 

ARTICLE TWO EQUITY PLEDGE

 

	
2.1
	
Pledgers hereby agree to pledge to Pledgee the Collateral which Pledgers legally own and of which Pledgers have the right to dispose pursuant to this Agreement as a collateral security for the performance of the Contractual Obligations and the discharge of the Secured Liabilities.

 

	
2.2
	
Pledgers shall cause entry of the pledge arrangement of the equity interest hereunder (the “Equity Pledge”) onto the shareholder register of the Company on the date hereof, provide the entry document thereof to Pledgee in form satisfactory to it, and issue to Pledgee a certification document evidencing that the Equity Pledge has been registered with the relevant administration for industry and commerce within fifteen (15) days following the execution of this Agreement.

 

	
2.3
	
Pledgee shall not be held responsible for any depreciation of value of the Collateral during the term hereof and Pledgers shall not have any right of recourse or claim against Pledgee, unless such value depreciation arises out of Pledgee’s willful misconduct, or out of Pledgee’s gross negligence which constitutes the immediate cause of such depreciation. 

 

	
2.4
	
Subject to the provisions of Section 2.3 above, in the event that Pledgee’s interests is fully exposed to any possible material depreciation of value of the Collateral, Pledgee may at any time sell off or auction the Collateral on behalf of Pledgers and, upon mutual agreement with Pledgers, the proceeds thereof may be applied to earlier discharge of the Secured Liabilities or placed in escrow with the public notary of the area where Pledgee is located at Pledgers’ own expense.

 

	
2.5
	
In the event of any Event of Default, Pledgee shall have the right to dispose of the Collateral pursuant to Article Four hereof.

 

	
2.6
	
Pledgers may increase their contribution to the registered capital of the Company only upon Pledgee’s prior consent. Any such additional capital contribution of Pledgers shall also be deemed part of Collateral. 

 

	
2.7
	
Pledgers are entitled to receive dividend or interest in respect of the Collateral only upon Pledgee’s prior consent. Such dividend or interest shall be deposited into an escrow account designated and supervised by Pledgee, and be applied to the discharge of the Secured Liabilities in the first priority.

 

	
2.8
	
In the event of occurrence of any Event of Default, Pledgee shall have the right to dispose of any Collateral pursuant to the provisions hereof.

 

 

 

 

ARTICLE THREE RELEASE OF PLEDGE

 

Upon the full and complete fulfillment of the Contractual Obligations and discharge of the Secured Liabilities by Pledgers and the Company, Pledgee shall, upon Pledgers’ request, release the pledge hereunder and assist Pledgers in deregistering the Equity Pledge with the relevant administration for industry and commerce, and reasonable expenses arising out of such deregistration shall be borne by Pledgee.

 

ARTICLE FOUR DISPOSITION OF COLLATERAL

 

	
4.1
	
Pledgers and Pledgee hereby agree that following the occurrence of any Event of Default, Pledgee, upon notifying Pledgers in writing, shall have the right to exercise all remedies and power available to Pledgee under the PRC Law, the Transaction Documents, and the terms and conditions of this Agreement, including but not limited to selling off or auctioning the Collateral so as to satisfy its first priority right of compensation, and Pledgee will not be responsible for any losses arising out of its reasonable exercise of such remedies and power.

 

	
4.2
	
Pledgee shall have the right to designate in writing its counsel or other attorney to exercise any or all of the foregoing remedies and power on behalf of Pledgee and Pledgers may not raise any objection to such designation.

 

	
4.3
	
All reasonable costs and expenses incurred by Pledgee in exercising any or all of the foregoing remedies and power shall be borne by Pledgers and Pledgee shall have the right to deduct such costs and expenses from the proceeds generated by such exercise.

 

	
4.4
	
Any and all proceeds obtained by Pledgee from exercising any or all of the foregoing remedies and power shall be applied in the following order:

 

	
 
	
(a)
	
to the payment of any and all costs and expenses of the disposition of the Collateral and the exercise of the remedies and power by Pledgee, including without limitation the court fees and Pledgee’s counsel and attorney fees;

 

	
 
	
(b)
	
to the payment of taxes payable in connection with the disposition of the Collateral; and

 

	
 
	
(c)
	
to the repayment of the Secured Liabilities to Pledgee. 

 

Any surplus then remaining from such proceeds shall be handed over by Pledgee to Pledgers or any other person who is entitled to such proceeds 

 

 

pursuant to law and regulation, or placed in escrow, at Pledgers’ costs and expenses, with the public notary of the area where Pledgee is located.

 

	
4.5
	
Pledgee shall have the option to exercise its remedies concurrently or otherwise and will not be obligated to exercise any other remedies before exercising its right to sell off or auction the Collateral hereunder. 

 

ARTICLE FIVE COSTS AND EXPENSES

 

All actual costs and expenses arising out of the creation of the Equity Pledge hereunder, including without limitation stamp tax, any other taxes and all legal expenses, shall be borne by Pledgee.

 

ARTICLE SIX CONTINUITY; NO WAIVER

 

The Equity Pledge created hereunder shall constitute a continuous security, the validity of which shall continue until the Contractual Obligations are fully performed or the Secured Liabilities fully discharged. No waiver or excuse by Pledgee of any Event of Default by Pledgers and no delay in exercising by Pledgee of any of its rights under the Transaction Documents and this Agreement shall impair Pledgee’s right under this Agreement, the relevant PRC Law and the Transaction Documents to require at any time hereafter for the strict compliance with the Transaction Documents and this Agreement by Pledgers or any other right Pledgee may have as a result of any breach by Pledgers of their obligations under the Transaction Documents and/or this Agreement.  

 

ARTICLE SEVEN REPRESENTATIONS AND WARRANTIES

 

Each Pledger hereby, jointly and severally, represents and warrants to Pledgee that 

 

	
7.1
	
each of them is a PRC citizen with full capacity, has full and independent legal status and capacity, has obtained appropriate authorization to sign, deliver and perform this Agreement, and may act as an independent litigation subject;

 

	
7.2
	
each of them has full power and authorization to sign and deliver this Agreement as well as all other documents to be signed by each in connection with the transaction anticipated herein and to consummate such transaction; 

 

	
7.3
	
all reports, documents and information provided by Pledgers to Pledgee prior to the coming into effect of this Agreement in connection with Pledgers and matters required hereunder are true, correct, and valid in all material aspects at the time the same were provided;

 

 

 

 

	
7.4
	
all reports, documents and information provided by Pledgers to Pledgee following the coming into effect of this Agreement in connection with Pledgers and matters required hereunder are true, correct, and valid in all material aspects at the time the same were provided;

 

	
7.5
	
at the time this Agreement becomes effective, Pledgers are the only legal owner of the Collateral with full power to dispose of the Collateral or any part thereof, and there is no existing dispute over the ownership of the Collateral;

 

	
7.6
	
apart from the security interests placed on the Collateral pursuant to this Agreement or the rights created under the Transaction Documents, there is no other security interests or third party right over the Collateral;

 

	
7.7
	
the Collateral is pledgeable and assignable under law and Pledgers have full rights and power to pledge the Collateral to Pledgee in accordance with the provisions hereof; 

 

	
7.8
	
this Agreement is duly signed by Pledgers and constitutes their legal, valid and binding obligations; 

 

	
7.9
	
any third party consent, permission, waiver, authorization, or any government approval, license, exemption, or any registration or filing procedures with any government agency in connection with the execution and performance of this Agreement and the creation of the Equity Pledge hereunder, has been obtained or processed (to the extent legally required) and will remain fully valid during the term hereof;

 

	
7.10
	
the execution and performance by Pledgers of this Agreement will not violate or conflict with all laws applicable to Pledgers, or any agreement, judgment, arbitral award, administrative decision to which they are a party or by which any of their assets are bound;

 

	
7.11
	
the pledge hereunder shall constitute the first priority security on the Collateral;

 

	
7.12
	
there is no pending, or to the best knowledge of Pledgers, threatened litigation, legal proceeding or claim against Pledgers, their assets, or the Collateral before any court or arbitration tribunal, and there is no pending, or to the best knowledge of Pledgers, threatened litigation, legal proceeding or claim against Pledgers, their assets, or the Collateral at any government or any administrative organization, which may have material or adverse effect on the financial status of Pledgers or their ability to fulfill their obligations and responsibilities hereunder; and 

 

 

 

 

	
7.13
	
the foregoing representations and warranties is true and correct at any time and in any circumstances and be fully abided by the Pledgers until all the Contractual Obligations are performed or all the Secured Liabilities are discharged. 

 

ARTICLE EIGHT PLEDGERS’ UNDERTAKING

 

Each Pledger hereby, jointly and severally, undertakes to Pledgee that 

 

	
8.1
	
without Pledgee’s prior consent in writing, Pledgers may not create or permit to be created any new pledge or any other security interests on the Collateral, and any and all pledges or any other security interests placed on the Collateral, in whole or in part, without Pledgee’s prior consent in writing shall be null and void;

 

	
8.2
	
Pledgers may not transfer the Collateral without first notifying Pledgee in writing and obtaining its prior consent in writing, and any and all attempted transfers of the Collateral by Pledgers shall be null and void; proceeds from Pledgers’ transfer of the Collateral shall be first applied to the earlier discharge of the Secured Liabilities or placed in escrow with the third party agreed to by Pledgee; and transfer by any Pledger of the Collateral in its possession upon Pledgee’s consent shall not affect the Collateral under possession of the other Pledger, which shall continue to be bound by this Agreement;

 

	
8.3
	
in the event of any litigation, legal proceeding or claim which may have any adverse effect on the interest of Pledgers or Pledgee under the Transaction Documents and this Agreement or the Collateral, Pledgers shall promptly notify Pledgee in writing and. at Pledgee’s reasonable request, take all necessary actions to safeguard Pledgee’s interests in the Collateral;

 

	
8.4
	
Pledgers will not take or permit to be taken any action which may have any adverse effect on Pledgee’s interests under the Transaction Documents and this Agreement or the Collateral;

 

	
8.5
	
at Pledgee’s reasonable request, Pledgers will take all necessary measures and sign all necessary documents, including but not limited to any supplemental agreement hereto, to ensure the execution and realization of Pledgee’s interests in and rights to the Collateral; and 

 

	
8.6
	
in the event of any transfer of the Collateral as a result of the exercise of the pledge right hereunder, Pledgers shall take all necessary measures to effectuate such transfer. 

 

 

 

 

ARTICLE NINE CHANGE OF CIRCUMSTANCES

 

In addition to but not in contradiction with the other terms and conditions of the Transaction Documents and this Agreement, if at any time due to the promulgation or change of any PRC Law, or any change to the interpretation or application thereof, or any change to the relevant registration procedures, maintaining the validity of this Agreement and/or disposing of the Collateral in the manner described herein is deemed by Pledgee to be invalid or contradictory to such PRC Law, Pledgers shall forthwith take any action and/or sign any document or other instrument according to the written instructions and reasonable request of Pledgee, so as to

 

	
(1)
	
keep this Agreement valid;

 

	
(2)
	
facilitate the disposition of the Collateral in the manner described herein; and

 

	
(3)
	
maintain or realize the purposes of this Agreement or the security interests created hereunder.

 

ARTICLE TEN EFFECTIVENESS AND TERM

 

	
10.1
	
This Agreement shall become effective on the date on which it is duly signed by the Parties.

 

	
10.2
	
The term of this Agreement shall continue until the Contractual Obligations are fully performed or the Secured Liabilities are fully discharged. 

 

ARTICLE ELEVEN NOTICE

 

	
11.1
	
Any and all notices, requests, instructions or other communications required to be made hereof or made pursuant to this Agreement by one Party to the other hereunder shall be made in writing.

 

	
11.2
	
The foregoing notice or other communication shall be deemed duly given upon its delivery by fax or telex or personal delivery or five (5) days following its delivery by mail.

 

ARTICLE TWELVE MISCELLANEOUS

 

	
12.1
	
Upon notifying Pledgers, Pledgee may transfer its rights and/or obligations hereunder to any third party without Pledgers consent, but Pledgers may not transfer their rights, obligations or liabilities hereunder to any third party without Pledgee’s prior consent in writing. The successors or permitted assigns of Pledgers (if any) shall continue to perform Pledgers’ obligations under this Agreement.

 

 

 

	
12.2
	
The amount of the Secured Liabilities determined by Pledgee at its own discretion when exercising its right of pledge to the Collateral pursuant to this Agreement shall be conclusive evidence of the Secured Liabilities hereunder.  

 

	
12.3
	
This Agreement is made in Chinese in three (3) original copies, with each Party hereto holding one (1) copy, provided that more duly signed copies of this Agreement may be added for registration or filing purposes (where necessary).

 

	
12.4
	
The execution, effectiveness, performance, amendment, interpretation and termination of this Agreement shall be governed by the PRC Law.

 

	
12.5
	
Any dispute arising out of or in connection with this Agreement shall be resolved by the Parties through negotiation. In the event that the Parties cannot reach an agreement within thirty (30) days following the occurrence of such dispute, the dispute shall be submitted to China International Economic and Trade Arbitration Commission for arbitration in accordance with the arbitration rules of such commission then in effect. The arbitration shall be conducted in Beijing and the arbitral award shall be final and binding upon both Parties. 

 

	
12.6
	
The rights, power and remedies provided for either Party herein shall not exclude any other rights, power or remedies to which such Party is entitled under law, regulations, and other provisions herein, and the exercise by one Party of its right, power, or remedies shall not hinder its exercise of any other right, power, or remedies. 

 

	
12.7
	
Failure to exercise or delay in exercising any right, power, or remedies under this Agreement or law (collectively, the “Rights”) shall not be deemed a waiver of such Rights, and waiver of any single or partial exercise of the Rights shall not exclude the exercise of the Rights in any other manner or the exercise of any other Rights. 

 

	
12.8
	
Headings herein are inserted for ease of reference only. In no event may such headings be used to interpret or affect the interpretation of the provisions herein.

 

	
12.9
	
All provisions herein are separable and independent of any other provisions. If one or more provisions hereof are held invalid, illegal or unenforceable at any time, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be adversely affected thereby.

 

 

 

 

	
12.10
	
Amendment or addition to this Agreement shall be made in writing and may not become effective unless and until duly executed by the Parties, Pledgee’s transfer of its rights hereunder pursuant to Section 12.1 hereof excepted.  

 

	
12.11
	
Subject to Section 12.1 above, this Agreement shall be binding on the legal assigns of the Parties hereto. 

 

	
12.12
	
Pledgers agree to authorize any individual (“Trustee”) appointed by Pledgee to sign on their behalf any and all legal documents required by Pledgee in exercising its rights hereunder. Concurrently herewith, Pledgers shall each sign a power of attorney in form attached hereto as Exhibit 2 (“Power of Attorney”) and place such Power of Attorney as duly signed by them under the custody of Pledgee, who may submit such Power of Attorney to the relevant government whenever necessary. Upon and only upon notification in writing from Pledgee to Pledgers regarding the replacement of Trustee, Pledgers shall forthwith cancel their authorization to the existing Trustee and authorize such other Trustee appointed by Pledgee then to sign on their behalf any and all legal documents required by Pledgee in exercising its rights hereunder. The new Power of Attorney, once made, shall replace the original one. In no other circumstances may Pledgers cancel their Power of Attorney to the Trustee.

 

 

 

[Remainder of the page left blank intentionally]

 

 

 

 

 

[signature page]

 

IN WITNESS HEREOF, the Parties have signed this Equity Pledge Agreement as of the date and in the place first written above. 

 

 

 

Chen Ming

 

	
By:
	
/s/ Chen Ming

 

 

 

He Yansheng

 

 

	
By:
	
/s/ He Yansheng

 

 

 

Qie Yi You (Beijing) Information Technology Co., Ltd.(seal)

 

 

 

 

EXHIBIT 1: 

 

Background Information of the Company

 

		
	
Name: 
	
Beijing Chenhuan Technology Co., Ltd.

	
 

	
Registered Address: 
	
#3-71 Building No. 6 Ronghui Plaza, Linkong Economic Zone, Shunyi District, Beijing, China

	
 
	
 

	
Registered Capital:
	
RMB1.5 Million

	
 
	
 

	
Legal Representative: 
	
Chen Ming

	
 
	
 

	
Equity Structure:
	
 

 

	
Shareholder

Name
	
Amount of Registered Capital

Owned
	
Percentage of Capital

Contribution

	
Chen Ming
	
RMB0.765 Million
	
51%

	
He Yansheng
	
RMB0.735 Million
	
49%

	
Total
	
RMB1.5 Million
	
100%

 

 

 

 

EXHIBIT 2: 

 

Power of Attorney

 

I, Chen Ming, hereby irrevocably authorize __________ (ID No.: ____________) to act as my trustee, who in such capacity may sign any and all legal documents required by Qie Yi You (Beijing) Information Technology Co., Ltd.in exercising its rights under the Equity Pledge Agreement of Beijing Chenhuan Technology Co., Ltd. by and among such company, myself and another party thereto and handle all registration procedures required by the equity pledge hereunder with the relevant administration for industry and commerce.

 

	
By:
	
 
	
(signed)

Name: Chen Ming 

Date: 

 

 

 

 

Power of Attorney

 

I, He Yansheng, hereby irrevocably authorize __________ (ID No.: ____________) to act as my trustee, who in such capacity may sign any and all legal documents required by Qie Yi You (Beijing) Information Technology Co., Ltd.in exercising its rights under the Equity Pledge Agreement of Beijing Chenhuan Technology Co., Ltd. by and among such company, myself and another party thereto and handle all registration procedures required by the equity pledge hereunder with the relevant administration for industry and commerce.

 

	
By:
	
 
	
(signed)

Name: He Yansheng

Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00344-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00344-of-00352.parquet"}]]