Document:

Exhibit 4.62

 

 

SHAREHOLDERS’ VOTING RIGHTS ENTRUSTMENT AGREEMENT

 

Regarding

 

[BEIJING YOUYUE HUDONG INFORMATION SCIENCE CO., LTD.]

 

 

By and among

 

[BEIJING MIYUAN INFORMATION TECHNOLOGY CO., LTD.]

 

[BEIJING YOUYUE HUDONG INFORMATION SCIENCE CO., LTD.]

 

[TAO LU]

 

[HUI SONG]

 

And

 

OTHERS

 

December 1, 2015

 

 

SHAREHOLDERS’ VOTING RIGHTS ENTRUSTMENT AGREEMENT

 

This SHAREHOLDERS’ VOTING RIGHTS ENTRUSTMENT AGREEMENT (the “Agreement”) is entered into on December 1, 2015 in [Beijing], the People’s Republic of China (“China” or “PRC”) by and among the following Parties:

 

(1)             [BEIJING MIYUAN INFORMATION TECHNOLOGY CO., LTD.] (the “WFOE”)

 

Registered address: [South of 04-00 & 01, 14F, No.35 Anding Road, Chaoyang District, Beijing]

 

Legal representative: [ Yahong ZHANG ]

 

(2)             [BEIJING HUDONG YOUYUE INFORMATION SCIENCE CO., LTD.] (the “Domestic Company”)

 

Registered address: [Building 2, No.12 Jia, West Dawang Road, Chaoyang District, Beijing (No.22678, Fuhuaqi, National Advertising Industry Park)]

 

Legal representative: [ Tao LU ]

 

(3)             [ Tao LU ], a citizen of China

 

(4)             [ Hui SONG], a citizen of China

 

(5)             [ Yu ZHANG ], a citizen of China

 

(Tao LU, Hui SONG, Yu ZHANG are collectively referred to as the “Existing Shareholders”)

 

WHEREAS:

 

1.                  As of the date of the signing of this Agreement, the Existing Shareholders are the entire existing shareholders of the Domestic Company, and hold all the equity interests in the Domestic Company;

 

2.                  The Existing Shareholders intend to grant the person designated by the WFOE the authority to exercise the voting rights enjoyed by them in the Domestic Company, and the WFOE agrees to designate the relevant person to accept such authorization.

 

NOW, THEREFORE, upon friendly negotiations, the Parties agree as follows:

 

ARTICLE I. ENTRUSTMENT OF VOTING RIGHTS

 

1.1       The Existing Shareholders hereby irrevocably warrant that, after the execution of this Agreement, they will execute a power of attorney to authorize the individual designated by the WFOE (the “Authorized Person”) to exercise the following rights enjoyed by the Existing Shareholders as the shareholders of the Domestic Company as granted by the articles of association of the Domestic Company then in effect (collectively the “Authorized Rights”):

 

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(1)         attending the shareholders’ meeting of the Domestic Company as the representative of the Existing Shareholders;

 

(2)         representing the Existing Shareholders to vote for all the matters that shall be discussed and resolved by the shareholders’ meeting;

 

(3)         proposing the convention of the extraordinary shareholders’ meeting;

 

(4)         any shareholders’ rights as specified by laws; and

 

(5)         other shareholders’ voting rights under the articles of association of the Domestic Company (including any other shareholders’ voting rights as provided in such amended articles of association).

 

1.2           The precondition for the above authorization and entrustment is that the Authorized Person shall be a Chinese citizen and that the WFOE consents to the above authorization and entrustment.  Only when the WFOE delivers written notice to the Existing Shareholders requiring replacement of the Authorized Person, shall the Existing Shareholders promptly revoke the authorization to the existing Authorized Person hereunder and authorize the Chinese citizen otherwise designated by the WFOE to exercise the Authorized Rights according to this Agreement, and the new authorization and entrustment, once made, shall supersede the original authorization and entrustment; except for the above circumstance, the Existing Shareholders shall not revoke the authorization and entrustment granted to the Authorized Person.

 

1.3           The Authorized Person shall perform the entrusted obligations within the scope of the authorization under this Agreement in a prudent and diligent manner.  The Existing Shareholders shall acknowledge and be liable for any legal consequences arising from the exercise of any of the Authorized Rights by the Authorized Person.

 

1.4       The Existing Shareholders hereby confirm that the Authorized Person does not need to seek the opinion from the Existing Shareholders before exercising the above Authorized Rights, unless otherwise provided by PRC Laws.  However, after each resolution is adopted or the proposal for convention of extraordinary shareholders’ meeting is made, the Authorized Person shall notify the Existing Shareholders regarding such promptly.

 

1.5          The Existing Shareholders hereby confirm that the Authorized Person has the right to designate any entity or individual to exercise the Authorized Rights under Article 1.1 of this Agreement without consent of the Existing Shareholders.

 

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1.6          The Existing Shareholders hereby confirm that after the execution of this Agreement, they will authorize the Authorized Person to exercise the entire shareholder’s rights which they have, no matter what kind of changes take place in their shareholding percentages of the Domestic Company.

 

ARTICLE II. RIGHT TO INFORMATION

 

For the purpose of exercising the Authorized Rights hereunder, the Authorized Person shall be entitled to have access to various information of the Domestic Company such as the operation, business, clients, finance, employees of the company, and the relevant materials of the Domestic Company (including but not limited to any accounts, financial statements, contracts, internal correspondences, meeting minutes of board of directors and other documents related to the finance, business and operation), and the Existing Shareholders and the Domestic Company shall fully cooperate with the exercising of the above rights by the Authorized Person.

 

ARTICLE III. EXERCISE OF THE AUTHORIZED RIGHTS

 

3.1       The Existing Shareholders shall provide full assistance to the exercise of the Authorized Rights by the Authorized Person, including promptly executing the shareholders’ resolution of the Domestic Company as adopted by the Authorized Person or other relevant legal documents when necessary (including for satisfying the documentation requirements for government approvals, registrations and filings).

 

3.2       At any time during the term of this Agreement, if the Existing Shareholders sell or transfer part or all of their equity interests to any third party after obtaining consent of the WFOE, the Existing Shareholders shall ensure the aforesaid third party to sign an agreement before the closing of such equity interests transfer, of which both the form and content are basically consistent with this Agreement, unless such requirement is exempted pursuant to a prior written consent by the WFOE.

 

3.3       In case at any time during the term of this Agreement, the grant or exercise of the Authorized Rights hereunder cannot be realized for any reason (except for default by the Existing Shareholders or the Domestic Company), the Parties shall promptly seek the alternative arrangement most similar to the provision that cannot be realized, and execute a supplementary agreement amending or adjusting the provisions of this Agreement when necessary, so as to ensure the sustainable realization of the purpose of this Agreement.

 

ARTICLE IV. EXEMPTION AND INDEMNITY

 

4.1       The Parties acknowledge that the WFOE shall not be required to be liable to or make any economic or other indemnity to other Parties or any third party due to the exercise of the Authorized Rights by the entity/ person designated by the WFOE under this Agreement, if the WFOE designate any entity/ individual to exercise the Authorized Rights under this Agreement.

 

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4.2       The Domestic Company and the Existing Shareholders agree to severally and jointly indemnify and hold harmless the WFOE and the Authorized Person from all losses incurred or may be incurred due to the exercise of the Authorized Rights by the Authorized Person, including but not limited to any losses caused by lawsuits, demands, arbitrations, claims initiated by any third parties or administrative investigations initiated and penalties imposed by government agencies.  If such losses are due to the WFOE’s deliberate action or gross negligence, such losses shall be excluded from such indemnity.

 

ARTICLE V.  REPRESENTATIONS AND WARRANTIES

 

5.1       The Existing Shareholders hereby represent and warrant as follows:

 

5.1.1                              The Existing Shareholders are Chinese citizens with full civil capacity, full and independent legal status and legal capacity, and may act as an eligible party to litigation independently.

 

5.1.2                              The Existing Shareholders have the full power and authorization to execute and deliver this Agreement and all other documents relevant to the contemplated transaction hereunder to be executed by them, and to consummate the contemplated transaction hereunder.

 

5.1.3                              This Agreement shall be legally and duly executed and delivered by the Existing Shareholders.  This Agreement shall constitute legal and binding obligation upon the Existing Shareholders, and can be enforced against the Existing Shareholders in accordance with this Agreement.

 

5.1.4                              The Existing Shareholders are the registered legal shareholders of the Domestic Company when this Agreement comes into effect, and have paid the full amount of their subscribed registered capital contribution to the Domestic Company. Except for the rights created under this Agreement, the Equity Pledge Agreement by and among the Shareholders and the WFOE, and the Exclusive Purchase Option Agreement by and among the Shareholders, the Domestic Company and the WFOE, the Authorized Rights shall be free of any third party rights. Pursuant to this Agreement, the Authorized Person may completely and fully exercise the Authorized Rights in accordance with the articles of association of the Domestic Company then in effect.

 

5.2       The WFOE and the Domestic Company hereby respectively represent and warrant as follows:

 

5.2.1                              Each of the WFOE and the Domestic Comapny is a limited liability company duly registered and existing under the PRC Laws with independent legal person status.  Each of the WFOE and the Domestic Company has full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and may act as an eligible party to litigation independently.

 

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5.2.2                              Each of the WFOE and the Domestic Company has the full internal corporate power and authorization to execute and deliver this Agreement and all other documents relevant to the contemplated transaction to be executed by it, and to consummate the contemplated transaction.

 

5.3       The Domestic Company further represents and warrants that the Existing Shareholders are the registered and legal shareholders of the Domestic Company when this Agreement comes into effect, and have paid the full amount of their subscribed registered capital contribution to the Domestic Company.  Pursuant to this Agreement, the Authorized Person may completely and fully exercise the Authorized Rights in accordance with the articles of association of the Domestic Company then in effect.

 

ARTICLE VI. TERM OF THE AGREEMENT

 

6.         This Agreement shall become effective upon the execution by the Parties, and shall remain in effect unless terminated in accordance with Article 8.1 of this Agreement or pursuant to the WFOE’s request in writing.

 

ARTICLE VII. NOTICE

 

7.1       All notices, requests, demands and other correspondences required by or in accordance with this Agreement shall be delivered to the relevant Party in writing.

 

7.2       The above notices or other correspondences shall be deemed to be properly delivered upon sending when delivered through fax or telegraph, upon delivered in person when personally delivered, or at the fifth (5th) day of mailing if sent by mail.

 

ARTICLE VIII. DEFAULT LIABILITIES

 

8.1       The Parties agree and acknowledge that, in the event that a Party (the “Defaulting Party”) substantially violates any of the agreements hereunder or fails to perform any of its obligations hereunder substantially, it shall constitute a default under this Agreement (the “Default”).  Any of the non-defaulting parties (the “Non-defaulting Party”) shall be entitled to request the Defaulting Party to rectify the Default or take remedial measures within a reasonable period.  In the event that the Defaulting Party fails to rectify the Default or take remedial measures within a reasonable period or within ten (10) days after a written notice sent by the Non-defaulting Party to the Defaulting Party requesting for the rectification, and if the Defaulting Party is any of the Existing Shareholders or the Domestic Company, the Non-defaulting Party shall be entitled to determine, at its sole discretion, to: (1) terminate this Agreement and request the Defaulting Party to indemnify all losses incurred by the Non-defaulting Party, or (2) request the Defaulting Party to continue to perform its obligations hereunder and indemnify all losses incurred by the Non-defaulting Party; if the Defaulting Party is the WFOE, the Non-defaulting Party shall be entitled to request the Defaulting Party to continue to perform its obligations hereunder and to indemnify all losses incurred by the Non-defaulting Party.

 

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8.2       The Parties agree and acknowledge that the Existing Shareholders or the Domestic Company shall not request to early terminate this Agreement for any reason under any circumstances, except otherwise required under the law or under this Agreement.

 

8.3       Notwithstanding any other provisions hereunder, this Article shall survive the suspension or termination of this Agreement.

 

ARTICLE IX. MISCELLANEOUS

 

9.1       This Agreement shall be signed in eight [5] originals in Chinese. Each original shall have equal legal force, and each Party shall retain one (1) original of this Agreement in each language.

 

9.2       The conclusion, validity, performance, amendment, interpretation and termination of this Agreement shall be governed by the laws of the People’s Republic of China.

 

9.3       Any dispute arising out of or relating to this Agreement shall be settled by the disputing Parties through consultation. In case the disputing Parties fail to reach an agreement within thirty (30) days of the dispute, such dispute may be submitted by any Party to the [Beijing] Arbitration Commission (“BAC”) for arbitration by three arbitrators designated in accordance with the arbitration rules of BAC then in effect.  The arbitration award shall be final and binding upon the disputing Parties.

 

9.4       Any right, power and remedy granted to a Party under any provision of this Agreement shall not preclude any other right, power or remedy such Party is entitled to under any laws or regulations or any other provision of this Agreement.  The exercise of its right, power and remedy by a Party shall not preclude the exercise of any other right, power and remedy that such Party is entitled to.

 

9.5       Any Party’s failure or delay in exercising any of its right, power and remedy (“Such Rights”) under this Agreement or laws shall not result in a waiver of Such Rights, nor shall any single or partial waiver of any Such Right preclude any exercise of Such Right in other manner or the exercise of any other Such Rights by such Party.

 

9.6       The headings in this Agreement shall be for reference purpose only and shall not be used for or affect the construction of the Agreement in any event.

 

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9.7       Each provision of this Agreement shall be severable and independent of each of the other provision. In the event that one or several provisions of this Agreement become invalid, illegal or unenforceable at any time, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected.

 

9.8       Any amendment or supplement to this Agreement shall be made in writing, and shall take effect after duly executed by the Parties.

 

9.9       Without prior written consent of the WFOE, the Domestic Company and the Existing Shareholders shall not transfer any of its rights and/or obligations under this Agreement to any third party. The WFOE shall be entitled to transfer any of its rights and/or obligations hereunder to any third party designated by it after notifying the Existing Shareholders and the Domestic Company.

 

9.10 This Agreement shall be binding upon the legal successor of each Party.

 

(Remainder of this page is intentionally left blank)

 

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[Signature Page of the Shareholders’ Voting Rights Entrustment Agreement]

 

IN WITNESS WHEREOF, this Shareholders’ Voting Rights Entrustment Agreement has been duly executed by the Parties as of the date and at the place first above written

 

	
[BEIJING   MIYUAN INFORMATION TECHNOLOGY CO., LTD.]
    
	
(Company Seal)
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Zhang Yahong
    	
 
    	
 
    
	
Name:
    	
[ Yahong ZHANG ]
    	
 
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[ Tao LU ]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Lu Tao
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[ Hui SONG ]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Song Hui
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[ Yu ZHANG ]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Zhang Yu
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

	
[ BEIJING YOUYUE HUDONG   INFORMATION SCIENCE CO., LTD. ]
    	
 
    	
 
    
	
(Company Seal)
    	
 
    	
 
    
	
Signature:
    	
/s/ Lu Tao
    	
 
    	
 
    
	
Name:
    	
[ Tao LU ]
    	
 
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    	
 
    

 

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Exhibit I. Power of Attorney

 

I, [             ], hereby irrevocably authorize [                ] to act as my authorized representative to exercise the shareholder’s rights corresponding to the entire equity interests which I hold in [                ] (“Domestic Company”), in accordance with the Shareholders’ Voting Rights Entrustment Agreement entered by [               ] and me, including:

 

(1)         attending the shareholders’ meeting of the Domestic Company as the representative of the Existing Shareholder;

 

(2)         representing the Existing Shareholder to vote for all the matters that shall be discussed and resolved by the shareholders’ meeting;

 

(3)         proposing the convention of the extraordinary shareholders’ meeting;

 

(4)         any shareholders’ rights as specified by laws; and

 

(5)         other shareholders’ voting rights under the articles of association of the Domestic Company (including any other shareholders’ voting rights as provided in such amended articles of association).

 

	
 
    	
 
    	
Signature:
    
	
 
    	
 
    	
Date:
    

 

10Exhibit 4.63

 

Confidential

 

 

EXCLUSIVE PURCHASE OPTION AGREEMENT

 

Regarding

 

[BEIJING YOUYUE HUDONG INFORMATION SCIENCE CO., LTD.]

 

 

By and among

 

[TAO LU

 

HUI SONG]

 

AND OTHERS

 

[BEIJING MIYUAN INFORMATION TECHNOLOGY CO., LTD.]

 

And

 

[BEIJING YOUYUE HUDONG INFORMATION SCIENCE CO., LTD.]

 

December 1, 2015

 

 

EXCLUSIVE PURCHASE OPTION AGREEMENT

 

This EXCLUSIVE PURCHASE OPTION AGREEMENT (this “Agreement”) is entered into on December 1, 2015 in [Beijing], the People’s Republic of China (“China” or “PRC”) by and among the following parties:

 

1.              [BEIJING YOUYUE HUDONG INFORMATION SCIENCE CO., LTD.] (the “Domestic Company”)

 

Registered address: Building 2, No.12 Jia, West Dawang Road, Chaoyang District, Beijing (No.22678, Fuhuaqi, National Advertising Industry Park)

 

2.              [TAO LU], a citizen of China;

 

3.              [HUI SONG], a citizen of China;

 

4.              [YU ZHANG], a citizen of China;

 

(TAO LU, HUI SONG, YU ZHANG are hereinafter individually and collectively referred to as the “Existing Shareholder(s)”.)

 

5.              [BEIJING MIYUAN INFORMATION TECHNOLOGY CO., LTD.], (the “WFOE”)

 

Registered address: [South of 04-00 & 01, 14F, No.35 Anding Road, Chaoyang District, Beijing]

 

(For the purpose of this Agreement, the above parties are hereinafter individually referred to as a “Party” and collectively as the “Parties”.)

 

WHEREAS:

 

(1) The Existing Shareholders legally hold all the equity interests in the Domestic Company as of the date hereof.

 

(2) The Existing Shareholders intend to transfer all of their respective equity interests in the Domestic Company to the WFOE and/or any other entity or individual designated by the WFOE and WFOE intends to accept such transfer, subject to PRC Laws.

 

(3) In order to realize the above equity transfer, the Existing Shareholders agree to jointly grant the WFOE an exclusive and irrevocable option to purchase the equity interest (the “Purchase Option”), pursuant to which, the Existing Shareholders shall, upon the WFOE’s request, transfer the Option Equity Interests (as defined below) to the WFOE and/or any other entity or individual designated by the WFOE in accordance with the terms of this Agreement and subject to PRC Laws.

 

(4) The Domestic Company agrees the Existing Shareholders to grant the Purchase Option to the  WFOE according to this Agreement.

 

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NOW, THEREFORE, upon negotiations, the Parties agree as follows:

 

ARTICLE I. DEFINITIONS

 

1.1                   Unless otherwise provided according to the context, in this Agreement, the following terms shall have the meanings given below:

 

	
“Authorized Person”
    	
 
    	
has the meaning as specified in Article 3.7   hereof.
    
	
 
    	
 
    	
 
    
	
“Business Licenses”
    	
 
    	
refers to any approval, permit, filing, registration   etc. required for the Domestic Company to legally and effectively carry out   [its Internet information services], including but not limited to the   Business License for Enterprise Legal Person, Tax Registration Certificate,   other licenses regarding the business operation, and other relevant permits   and licenses as required by PRC Laws then in effect.
    
	
 
    	
 
    	
 
    
	
“Defaulting Party”
    	
 
    	
has the meaning as specified in Article 10.1   hereof.
    
	
 
    	
 
    	
 
    
	
“Default”
    	
 
    	
has the meaning as specified in Article 10.1   hereof.
    
	
 
    	
 
    	
 
    
	
“Exercise Notice”
    	
 
    	
has the meaning as specified in Article 3.5   hereof.
    
	
 
    	
 
    	
 
    
	
“the Domestic Company’s
    	
 
    	
 
    
	
Registered Capital”
    	
 
    	
refers to the registered capital of [RMB1 million]   of the Domestic Company as of the date hereof, and any increased registered   capital as a result of capital increase during the term of this Agreement.
    
	
 
    	
 
    	
 
    
	
“the Domestic Company’s Assets”
    	
 
    	
refers to all tangible and intangible assets that   the Domestic Company owns or has the right to use during the term of this   Agreement, including but not limited to any real properties, personal   properties, as well as intellectual properties such as trademarks,   copyrights, patents, proprietary technologies, domain names, software use   rights.
    
	
 
    	
 
    	
 
    
	
“Material Agreements”
    	
 
    	
refers to agreements to which the Domestic Company   is a party and which has material effect on the Domestic Company’s business   or assets, including but not limited to the Exclusive Technology License and   Services Agreement by and between the Domestic Company and the WFOE and other   agreements regarding the business of the Domestic Company.
    

 

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“Non-defaulting Party”
    	
 
    	
has the meaning as specified in Article 10.1   hereof.
    
	
 
    	
 
    	
 
    
	
“Option Equity Interests”
    	
 
    	
with respect to the Existing Shareholders, refers to   all of his/her equity interests in the Domestic Company’s Registered Capital,   which refers to 100% of the equity interests in the Domestic Company’s   Registered Capital.
    
	
 
    	
 
    	
 
    
	
“PRC Laws”
    	
 
    	
refers to the laws, administrative regulations,   administrative rules, local regulations, judicial interpretations and other   binding regulatory instruments of China then in effect.
    
	
 
    	
 
    	
 
    
	
“Power of Attorney”
    	
 
    	
has the meaning as specified in Article 3.7   hereof.
    
	
 
    	
 
    	
 
    
	
“Such Right”
    	
 
    	
has the meaning as specified in Article 11.5   hereof.
    
	
 
    	
 
    	
 
    
	
“Shareholding Percentage Cap”
    	
 
    	
has the meaning as specified in Article 3.2   hereof.
    
	
 
    	
 
    	
 
    
	
“Transfer Equity Interests”
    	
 
    	
refers to the equity interests in the Domestic   Company that the WFOE is entitled to the Existing Shareholders to transfer to   the WFOE or any of its designated entity or individual according to   Article 3.2 hereof when the WFOE exercises its Purchase Option (the “Exercise”), the amount of which may be all or part of the   Option Equity Interests, to be determined in the sole discretion by the WFOE   according to the PRC Laws then in effect and its own commercial   considerations.
    
	
 
    	
 
    	
 
    
	
“Transfer Price”
    	
 
    	
refers to, in accordance with Article IV   hereof, all the consideration which shall be paid by the WFOE or its   designated entity or individual to the Existing Shareholders for acquiring   the Transferred Equity Interests upon each Exercise.
    

 

1.2                   Reference to any PRC Laws hereunder shall be deemed to include:

 

(1)         any amendments, changes, extensions and reenactment pertaining to such PRC Laws, whether the effective dates of which are prior to or after the date of this Agreement; and

 

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(2)         any other decisions, notices and regulations promulgated in accordance with or taking effect as a result of such PRC Laws.

 

1.3                   Unless otherwise provided in the context hereof, references to the articles and clauses in this Agreement shall mean the corresponding articles and clauses of this Agreement.

 

ARTICLE II. GRANT OF PURCHASE OPTION

 

2.1                   The Existing Shareholders hereby agree to irrevocably and unconditionally grant to the WFOE an exclusive Purchase Option, pursuant to which the WFOE shall be entitled, subject to PRC Laws, to request the Existing Shareholders to transfer the Option Equity Interests to the WFOE or other entity or individual designated by the WFOE in accordance with this Agreement.  The WFOE hereby agrees to accept such Purchase Option.

 

2.2                   The Domestic Company hereby agrees to the grant of such Purchase Option to the WFOE by the Existing Shareholders in accordance with Article 2.1 above and other provisions of this Agreement.

 

ARTICLE III. EXERCISE

 

3.1                   To the extent as allowed under the PRC Laws, the WFOE shall have the absolute sole discretion as to determine the timing, method and number of times of its Exercise.

 

3.2                   In the event that the PRC Laws then in effect allow the WFOE and/or other entity or individual designated by the WFOE to hold all the equity interests in the Domestic Company, the WFOE shall have the right to choose to exercise all of its Purchase Option at one time or by installment, pursuant to which the WFOE and/or other entity or individual designated by the WFOE will purchase all of the Option Equity Interests from the Existing Shareholders at one time or by installment; in the event that the PRC Laws then in effect only allow the WFOE and/or other entity or individual designated by the WFOE to hold part of the equity interests in the Domestic Company, the WFOE shall have the right to determine the amount of the Transferred Equity Interests which shall not exceed the upper limit of the shareholding percentage as provided by PRC Laws then in effect (the “Shareholding Percentage Cap”), pursuant to which the WFOE and/or other entity or individual designated by the WFOE will purchase such amount of the Transferred Equity Interests from the Existing Shareholders.  Under the latter circumstance, with the gradual increase of the Shareholding Percentage Cap allowed under the PRC Laws, the WFOE shall have the right to exercise its Purchase Option for more than one time accordingly, so as to ultimately obtain all of the Option Equity Interests.

 

3.3                   Upon each Exercise, the WFOE shall have the right to determine at its sole discretion the amount of the Transferred Equity Interests that shall be transferred by the Existing Shareholders to the WFOE and/or other entity or individual designated by the WFOE under such Exercise, and the Existing Shareholders shall transfer the Transferred Equity Interests in the amount determined by the WFOE to the WFOE and/or other entity or individual designated by the WFOE.  The WFOE and/or other entity or individual designated by the WFOE shall pay the Transfer Price for the acquired Transferred Equity Interests to the Existing Shareholders who sell such Transferred Equity Interests under each Exercise.  The WFOE and/or other entity or individual designated by the WFOE shall have the right to offset the Transfer Price by the creditor’s rights held by it against the Existing Shareholders (including but not limited to loans).

 

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3.4                   Upon each Exercise, the WFOE may purchase the Transferred Equity Interests on its own or designate any third party to purchase all or part of the Transferred Equity Interests.

 

3.5                   After the WFOE determines to exercise its Purchase Option, it shall deliver a notice on Exercise of Purchase Option to the Existing Shareholders (the “Exercise Notice”, a form of which is set forth in Exhibit I attached hereto).  After receiving the Exercise Notice, the Existing Shareholders shall, according to the Exercise Notice, promptly transfer the Transferred Equity Interests to the WFOE and/or other entity or individual designated by the WFOE at one time in the manner as provided in Article 3.3 hereof.

 

3.6                   The Existing Shareholders hereby covenant and guarantee, once the WFOE delivers the Exercise Notice, the Existing Shareholders shall:

 

(1)                                 promptly adopt written resolutions and carry out all other necessary actions to approve the transfer of all the Transferred Equity Interests to the WFOE and/or other entity or individual designated by the WFOE at the Transfer Price;

 

(2)                                 promptly execute the equity transfer agreement with the WFOE and/or other entity or individual designated by the WFOE regarding the transfer of all the Transferred Equity Interests to the WFOE and/or other entity or individual designated by the WFOE at the Transfer Price; and

 

(3)                                 pursuant to the WFOE’s request and the provisions of laws and regulations, provide necessary assistance to the WFOE (including the provision and execution of all relevant legal documents, performance of all necessary procedures of government approvals and registrations and all relevant obligations), so as to ensure the WFOE and/or other entity or individual designated by the WFOE can obtain all of the Transferred Equity Interests without legal defects.

 

3.7                   The Existing Shareholders agree that, upon execution of this Agreement, the Existing Shareholders shall each execute a power of attorney (the “Power of Attorney”, form of which is set forth in Exhibit II attached hereto), authorizing in writing any person appointed by the WFOE (the “Authorized Person”) to represent the Existing Shareholders to execute any and all necessary legal documents according to this Agreement, so as to ensure the WFOE and/or other entity or individual designated by the WFOE can obtain all of the Transferred Equity Interests without legal defects.  Such Power of Attorney shall be kept in the WFOE’s custody, and where necessary, the WFOE may request at any time the Existing Shareholders to execute multiple counterparts of such Power of Attorney and submit such to the relevant government authorities.  Only when the WFOE delivers written notice to the Existing Shareholders requesting replacement of the Authorized Person, shall the Existing Shareholders promptly revoke the authorization to the existing Authorized Person and authorize the Authorized Person otherwise appointed by the WFOE to represent the Existing Shareholders to execute any and all necessary legal documents according to this Agreement, and the new Power of Attorney, once executed, shall supersede the original Power of Attorney; except for the above circumstance, the Existing Shareholders shall not revoke the Power of Attorney made to the Authorized Person.

 

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ARTICLE IV. TRANSFER PRICE

 

4.1                   Upon each Exercise by the WFOE, the Transfer Price to be paid by the WFOE or the entity or individual designated by the WFOE to the Existing Shareholders shall be the amount of the Domestic Company’s Registered Capital at that time multiplying by the percentage of the Transferred Equity Interests in the total equity interests of the Domestic Company.  In the event there is any compulsory requirement provided by PRC Laws then in effect with respect to the Transfer Price, the WFOE or the entity or individual designated by the WFOE shall be entitled to purchase the Transferred Equity Interests at a Purchase Price which is the lowest price allowed under the PRC Laws.

 

4.2                   The WFOE and/or other entity or individual designated by the WFOE shall have the right to offset the Transfer Price by the creditor’s rights held by it against the Existing Shareholders (including but not limited to loans).

 

ARTICLE V. REPRESENTATIONS AND WARRANTIES

 

5.1                   The Existing Shareholders and the Domestic Company hereby severally and jointly represent and warrant as follows, and such representations and warranties shall remain in effect as if they are made upon the transfer of the Option Equity Interests.

 

5.1.1                     The Existing Shareholders are Chinese citizens with full civil capacity, full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and may act as an eligible party to litigation independently.

 

5.1.2                     The Domestic Company is a limited liability company duly registered and existing under the PRC Laws with independent legal person status, full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and may act as an eligible party to litigation independently.

 

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5.1.3                     The Existing Shareholders and the Domestic Company have the full power and authorization to execute and deliver this Agreement and all other documents relevant to the contemplated transaction hereunder to be executed by them, and to consummate the contemplated transaction hereunder. The execution or performance of this Agreement will not in any material aspect violate or have conflicts with (i) any agreement, arrangement or obligation of which the Existing Shareholder or the Domestic Company is a party; or (ii) any existing regulatory laws, regulations, statutes or policies in effect.

 

5.1.4                     This Agreement shall be legally and duly executed and delivered by the Existing Shareholders and the Domestic Company.  This Agreement shall constitute legal and binding obligation upon the Existing Shareholders, and can be enforced against the Existing Shareholders in accordance with this Agreement.

 

5.1.5                     The Existing Shareholders are the registered legal owners of the Option Equity Interests when this Agreement comes into effect.  Except for the rights created under this Agreement, the Equity Pledge Agreement by and among the Existing Shareholders and the WFOE, and the Shareholders’ Voting Rights Delegation Agreement by and among the Existing Shareholders, the WFOE and the Domestic Company, the Option Equity Interests shall be free of any lien, pledge, claim and other encumbrances and third party rights.  Pursuant to this Agreement, after the Exercise, the WFOE and/or other entity or individual designated by the WFOE shall obtain the title to the Transferred Equity Interests which is in good standing and free of any lien, pledge, claim and other encumbrances and third party rights.

 

5.1.6                     As of the date of this Agreement, the Domestic Company has no pending or potential litigations, arbitrations or administrative investigations relating to its equity interests, assets or the Domestic Company.

 

5.2                   The WFOE hereby represents and warrants as follows:

 

5.2.1                     The WFOE is a wholly foreign-owned limited liability company duly registered and existing under the PRC Laws with independent legal person status. The WFOE has full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and may act as a party to litigation independently.

 

5.2.2                     The WFOE has the full internal corporate power and authorization to execute and deliver this Agreement and all other documents relevant to the transactions contemplated hereunder to be executed by it, and the full power and authorization to consummate the contemplated transaction hereunder.

 

5.2.3                    This Agreement shall be legally and duly executed and delivered by the WFOE. This Agreement constitutes legal and binding obligations of the WFOE.

 

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ARTICLE VI. COVENANTS OF EXISTING SHAREHOLDERS

 

The Existing Shareholders hereby covenant as follows:

 

6.1                   During the term of this Agreement, the Existing Shareholders shall take all necessary measures to ensure that the Domestic Company is able to obtain in a timely manner all Business Licenses required to carry out its business operations and maintain all the Business Licenses in effect at any time.

 

6.2                   During the term of this Agreement, without the prior written consent of the WFOE:

 

6.2.1                     the Existing Shareholders shall not transfer or otherwise dispose of any Option Equity Interests or create any encumbrances or other third party rights thereon;

 

6.2.2                     the Existing Shareholders shall not increase or reduce the Domestic Company’s Registered Capital or alter the shareholding structure of the Domestic Company as of the date of this Agreement in any manner;

 

6.2.3                     the Existing Shareholders shall not transfer, pledge or dispose of in any other manner or cause the management of the Domestic to transfer, pledge, or dispose of any of the Domestic Company’s Assets, lawful income or profits (except for those during the ordinary business operation);

 

6.2.4                     the Existing Shareholders shall not terminate or cause the management of the Domestic Company to terminate any of the Material Agreements executed by the Domestic Company, or to enter into any other agreements in conflict with the existing Material Agreements;

 

6.2.5                     the Existing Shareholders shall not appoint or replace any directors, supervisors, or any other management personnel of the Domestic Company which may be appointed and removed by the Existing Shareholders;

 

6.2.6                     the Existing Shareholders shall not cause or approve the Domestic Company to declare any distribution of or actually distribute any distributable profits, dividends or dividend on shares;

 

6.2.7                     the Existing Shareholders shall ensure the Domestic Company being duly existing and not terminated, liquidated or dissolved;

 

6.2.8                     any of the Existing Shareholders shall not cause or approve the Domestic Company to amend its articles of association;

 

6.2.9                     any of the Existing Shareholders shall ensure the Domestic Company not to lend or borrow any loan or provide guarantee or security of any kind, or to undertake any other material obligations beyond its ordinary business operations; or

 

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6.2.10              any of the Existing Shareholders shall ensure the Domestic Company not to merge with any third party, acquire the assets or equity interests of any third party, or otherwise invest in any third party.

 

6.3                   During the term of this Agreement, the Existing Shareholders shall take all necessary measures to ensure that the Domestic Company appoints directors, supervisors, or any other management personnel of the Domestic Company which may be appointed and removed by the Existing Shareholders pursuant to instructions of the WFOE.

 

6.4                   During the term of this Agreement, the Existing Shareholders shall timely notify the WFOE regarding any potential or pending litigations, arbitrations or administrative procedures relating to the assets, business or revenues of the Domestic Company.

 

6.5                   During the term of this Agreement, the Existing Shareholders shall ensure to pay the WFOE all the received profits or other distributions of the Domestic Company if the WFOE agrees that the Domestic Company distributes dividends or profits to the Existing Shareholders.

 

6.6                   During the term of this Agreement, the Existing Shareholders shall use their best endeavors and take all necessary measures to safeguard their share rights and interests in the Domestic Company, including but not limited to executing all necessary documents, bringing all necessary actions and taking all necessary means of defense.

 

6.7                   The Existing Shareholders shall strictly comply with the terms of this Agreement and other agreements entered with the Domestic Company or the WFOE, and shall do any act or omit to do any act which may damage the effectiveness and compulsory enforcement of such agreements.

 

ARTICLE VII. COVENANTS OF THE DOMESTIC COMPANY

 

7.1                   In the event that the execution and performance of this Agreement and the grant of the Purchase Option hereunder are subject to any third party consent, permit, waiver, authorization or any governmental approval, permit, exemption or registration or filing procedures with any government authorities (if legally required), the Domestic Company shall use its best endeavors to assist in satisfying the above requirements.

 

7.2.                Without the prior written consent of the WFOE, the Domestic Company shall not take any of the following conducts:

 

7.2.1                     amending the articles of association of the Domestic Company, increasing or reducing the Domestic Company’s Registered Capital or altering the shareholding structure of the Domestic Company as of the date of this Agreement in any manner;

 

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7.2.2                     assisting or permitting the Existing Shareholders to transfer or otherwise dispose of any Option Equity Interests or create any encumbrances or other third party rights thereon;

 

7.2.3                     terminating any of the Material Agreements executed by the Domestic Company, or entering into any other agreements in conflict with the existing Material Agreements;

 

7.2.4                     making any payment of which the amount of a single payment is not less than (or equivalent to) RMB 50 thousand or the cumulative total amount is not less than (or equivalent to) RMB 1 million;

 

7.2.5                     liquidating, dissolving or declaring termination;

 

7.2.6                     merging with any third party, acquiring the assets or equity interests of any third party, or otherwise invest in any third party; or

 

7.2.7                     lending or borrowing any loan or providing guarantee or security of any kind, or to undertake any other material obligations beyond its ordinary business operations.

 

7.3.                The Domestic Company covenants, the Existing Shareholders will ensure the Domestic Company not to take or allow any conduct or act which may have adverse effect on the benefits of the WFOE under this Agreement.

 

7.4                   During the term of this Agreement, the Domestic Company shall use its best endeavors and take all necessary measures to safeguard the shareholding structure of the Domestic Company, ensure the Domestic Company’s ability to timely obtain all Business Licenses required to carry out its business operations, and maintain all the Business Licenses in effect at any time. Meanwhile, the Domestic Company shall use its best endeavors and take all necessary measures to develop the Domestic Company’s business and ensure the legitimate operations of the Domestic Company. The Domestic Company shall guarantee that they will not do any act or omit to do any act which may damage the Domestic Company’s Assets or business reputation.

 

7.5                   During the term of this Agreement, upon the WFOE’s request, the Domestic Company shall provide the WFOE with all its operating and financial information.

 

7.6                   Without the WFOE’s prior written consent, the Domestic Company shall not distribute dividends or profits to the Existing Shareholders. Once the WFOE requests in writing, the Domestic Company shall distribute all distributable profits to the Existing Shareholders as soon as possible.未

 

7.7                   During the term of this Agreement, the Domestic Company shall timely notify the WFOE regarding any potential or pending litigations, arbitrations or administrative procedures relating to the assets, business or revenues of the Domestic Company.

 

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7.8                   The Domestic Company shall strictly comply with the terms of this Agreement and other agreements entered with the Existing Shareholders or the WFOE, and shall do any act or omit to do any act which may damage the effectiveness and compulsory enforcement of such agreements.

 

ARTICLE VIII. TERM OF THE AGREEMENT

 

8.                          This Agreement shall come into effect from the date of execution by the Parties, and shall terminate once all of the Option Equity Interests have been legally transferred to the WFOE and/or other entity or individual designated by the WFOE as agreed in accordance with this Agreement.

 

ARTICLE IX. NOTICE

 

9.1                   All notices, requests, demands and other correspondences required by or in accordance with this Agreement shall be delivered to the relevant Party in writing.

 

9.2                   The above notices or other correspondences shall be deemed to be properly delivered upon sending when delivered through fax or telegraph, upon delivered in person when personally delivered, or at the fifth (5th) day of mailing if sent by mail.

 

ARTICLE X. DEFAULT LIABILITIES

 

10.1             The Parties agree and acknowledge that, in the event that a Party (the “Defaulting Party”) substantially violates any of the agreements hereunder or fails to perform any of its obligations hereunder substantially, it shall constitute a default under this Agreement (the “Default”).  The non-defaulting party (the “Non-defaulting Party”) shall be entitled to request the Defaulting Party to rectify the Default or take remedial measures within a reasonable period.  In the event that the Defaulting Party fails to rectify the Default or take remedial measures within a reasonable period or within ten (10) days after a written notice sent by the Non-defaulting Party to the Defaulting Party requesting for the rectification, and if the Defaulting Party is the Existing Shareholder or the Domestic Company, the Non-defaulting Party shall be entitled to determine, at its sole discretion, to: (1) terminate this Agreement and request the Defaulting Party to indemnify all losses incurred by the Non-defaulting Party, or (2) request the Defaulting Party to continue to perform its obligations hereunder and indemnify all losses incurred by the Non-defaulting Party; if the Defaulting Party is the WFOE, the Non-defaulting Party shall be entitled to request the Defaulting Party to continue to perform its obligations hereunder and to indemnify all losses incurred by the Non-defaulting Party.

 

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10.2            The Parties agree and acknowledge that the Existing Shareholders and the Domestic Company shall not request to terminate this Agreement for any reason under any circumstances.

 

10.3            The rights and remedies hereunder shall be accumulative and shall not preclude any other statutory rights or remedies.

 

10.4            Notwithstanding any other provisions hereunder, this Article shall survive the suspension or termination of this Agreement.

 

ARTICLE XI. MISCELLANEOUS

 

11.1            This Agreement shall be signed in eight [5] originals in Chinese. Each original shall have equal legal force, and each Party shall retain one (1) original of this Agreement in each language.

 

11.2            The conclusion, validity, performance, amendment, interpretation and termination of this Agreement shall be governed by the laws of the People’s Republic of China.

 

11.3            Any dispute arising out of or relating to this Agreement shall be settled by the disputing Parties through consultation. In case the disputing Parties fail to reach an agreement within thirty (30) days of the dispute, such dispute may be submitted by any Party to the [Beijing] Arbitration Commission (“BAC”) for arbitration by three arbitrators designated in accordance with the arbitration rules of BAC then in effect.  The arbitration award shall be final and binding upon any Party.

 

11.4            Any right, power and remedy granted to a Party under any provision of this Agreement shall not preclude any other right, power or remedy such Party is entitled to under any laws or regulations or any other provision of this Agreement.  The exercise of its right, power and remedy by a Party shall not preclude the exercise of any other right, power and remedy that such Party is entitled to.

 

11.5            Any Party’s failure or delay in exercising any of its right, power and remedy (“Such Rights”) under this Agreement or laws shall not result in a waiver of Such Rights, nor shall any single or partial waiver of any Such Right preclude any exercise of Such Right in other manner or the exercise of any other Such Rights by such Party.

 

11.6            The headings in this Agreement shall be for reference purpose only and shall not be used for or affect the construction of the Agreement in any event.

 

11.7            Each provision of this Agreement shall be severable and independent of each of the other provision.  In the event that one or several provisions of this Agreement become invalid, illegal or unenforceable at any time, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected.

 

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11.8            This Agreement, once executed, shall supersede any prior other legal documents executed previously by and among the Parties regarding the same subject hereof. Any amendment or supplement to this Agreement shall be made in writing, and shall take effect after duly executed by the Parties.

 

11.9            Without prior written consent of the WFOE, the Existing Shareholders shall not transfer any of its rights and/or obligations hereunder to any third party.  The WFOE shall be entitled to transfer any of its rights and/or obligations hereunder to any third party designated by it after notifying the Existing Shareholders and the Domestic Company.

 

11.10     This Agreement shall be binding upon the legal successor of each Party.

 

[Remainder of this page is intentionally left blank]

 

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[Signature Page of the Exclusive Purchase Option Agreement]

 

IN WITNESS WHEREOF, this Exclusive Purchase Option Agreement has been duly executed by the Parties as of the date and at the place first above written.

 

	
[BEIJING YOUYUE HUDONG INFORMATION SCIENCE   CO., LTD.]
    
	
(Company Seal)
    
	
 
    	
 
    
	
Signature:
    	
/s/ Lu Tao
    	
 
    
	
Name:
    	
[ Tao LU ]
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[ Tao LU ]
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Lu Tao
    	
 
    
	
 
    	
 
    	
 
    
	
[ Hui SONG ]
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Song Hui
    	
 
    
	
 
    	
 
    	
 
    
	
[ Yu ZHANG ]
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Zhang Yu
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[BEIJING MIYUAN INFORMATION TECHNOLOGY CO., LTD.   ]
    
	
(Company Seal)
    
	
 
    	
 
    
	
Signature:
    	
/s/ Yahong Zhang
    	
 
    
	
Name:
    	
[ Yahong ZHANG ]
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

15

 

Exhibit I:

 

Form of Exercise Notice

 

To: [Name of the Existing Shareholders]

 

 

 

Whereas our company has entered into an EXCLUSIVE PURCHASE OPTION AGREEMENT (the “Agreement”) with you and [     ] (“Domestic Company”) on                    , 2015, under which, to the extent as allowed under the PRC laws and regulations, you shall, upon request of our company, transfer to our company or any third party designated by our company the equity interests held by you in the Domestic Company.

 

Now therefore, our company hereby notifies you as follows:

 

Our company hereby request to exercise the Purchase Option under the Agreement to purchase                    % of the equity interests held by you in the Domestic Company (the “Equity Interests to Be Transferred”) by our company/[name of the company/individual] designated by our company.  Once you receive this notice, please promptly transfer the Equity Interests to Be Transferred to our company/[name of the company/individual] designated by our company in accordance with the Agreement.

 

	
Yours Sincerely,
    	
 
    
	
 
    	
 
    
	
 
    	
[                  ]   (Company Seal)
    
	
 
    	
 
    
	
 
    	
Legal   Representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
 
    

 

16

 

Exhibit II:

 

Form of Power of Attorney

 

 

I, [                    ], hereby irrevocably authorize [                     ] to act as my authorized representative to execute the Equity Transfer Agreement regarding the transfer of the equity interests in [the Domestic Company], by and among [the Domestic Company], [the WFOE] and me, and other relevant legal documents.

 

 

	
 
    	
Signature:
    
	
 
    	
 
    
	
 
    	
Date:
    

 

17

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