Document:

rere-ex437_84.htm

Exhibit 4.37

 

Option Purchase Agreement

 

This Option Purchase Agreement (this “Agreement”) is entered into by and between the following parties on March 17, 2022. 

 

Party A: Shanghai Aihui Trading Co., Ltd. 

Address: Room 611, Building 1, No.1616 Changyang Road, Yangpu District, Shanghai

Legal Representative: Chen Yike (ID No.: ***)

 

Party B: Xianxing HUANG (Exit-Entry Permit Number for Travelling to and from Hong Kong and Macao: ***)

 

For the purposes hereof, Party A and Party B are hereinafter referred to individually as a “Party” and collectively as the “Parties”.

 

WHEREAS:

 

	
 
	
1.
	
Party A is a wholly foreign-owned enterprise registered, duly incorporated and validly existing in the People’s Republic of China;

 

2.Shanghai Wanwuxinsheng Environmental Protection Technology Group Co., Ltd. (the “Company”) is a limited liability company registered incorporated in the PRC;

 

3.Party B is a shareholder of the Company, holding 1% of the Company’s equity interests;

 

NOW THEREFORE, upon mutual discussion and negotiation, the Parties have reached the following agreement:

 

	
1.
	
Grant of Option

 

	
1.1
	
Grant

 

The Parties agree that, as of the execution date of this Agreement, Party A has an exclusive option (the “Option”) to, subject to the provisions hereof, purchase or have any third party designated by it to purchase, all or part of the Company’s equity interests currently held and may in the future be held by Party B. Party A or any third party designated by it may exercise such Option at the lowest price permitted under applicable PRC laws. This Agreement, upon being signed by the Parties, grants Party A the Option, which grant once made shall be irrevocable during the term hereof.

 

	
1.2
	
Term

 

This Agreement shall become effective as of the date when it is signed by the Parties and shall terminate on the date when Party A acquires all of the Company’s equity interests held by Party B to the extent permitted under the laws of the PRC.

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2.
	
Exercise of Option and Closing

 

	
2.1
	
Exercise Schedule

 

	
 
	
(1)
	
Party B agrees that, to the extent permitted under the laws of the PRC, Party A may exercise all or part of the Option hereunder at any time hereafter. 

 

	
 
	
(2)
	
Party B agrees that there is no limit to the number of times that Party A may exercise the Option, unless Party A has acquired all of the Company’s equity interests held by Party B. 

 

	
 
	
(3)
	
Party B agrees that Party A may appoint a third party as its attorney-in-fact to exercise the Option, provided that Party A shall notify Party B in writing prior to such exercise.

 

	
2.2
	
Transfer

 

Party B agrees that Party A may transfer to any third party all or part of the Option hereunder, whereupon such third party will be entitled to exercise the Option subject to the provisions hereof and have Party A’s rights and obligations hereunder as if it were a party hereto.

 

	
2.3
	
Exercise Notice

 

	
 
	
(1)
	
Party A who intends to exercise the Option shall notify Party B in writing ten (10) business days prior to the Closing Date (as defined below), which notice shall specify the following:

 

	
 
	
(a)
	
the date of effective closing of the equity interests acquired upon exercise of the Option (the “Closing Date”);

 

	
 
	
(b)
	
the name of registered holder of the equity interests acquired upon exercise of the Option;

 

	
 
	
(c)
	
number of equity interests acquired from Party B;

 

	
 
	
(d)
	
payment terms; and

 

	
 
	
(e)
	
power of attorney (if exercised by any third party on its behalf).

 

	
 
	
(2)
	
The Parties agree that Party A may at any time appoint any third party to exercise the Option and register the equity interests subject to the Option in the name of such third party.

 

	
2.4
	
Transfer of Acquired Equity Interests

 

Whenever Party A exercises powers,

 

	
 
	
(1)
	
Party B shall cause the Company to promptly hold a shareholders’ meeting, at which a resolution shall be passed to approve the transfer of equity interests by Party B to Party A and (or) any designated person; and

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(2)
	
All concerned parties shall execute all such other contracts, agreements or documents, obtain all such government approvals and consents and take all such actions as may be necessary to: (i) transfer good title to the acquired equity interests to Party A and (or) such designated person, free and clear of any security interest; (ii) cause Party A and (or) the designated person to become the registered holder of such equity interests; and (iii) submit to Party A or such designated person the business license, approval certificates and other relevant documents most recently issued by competent PRC authority, which shall reflect, among other things, any change of equity interests, directors and legal representative.

 

	
3.
	
Representations and Warranties

 

	
3.1
	
Party B represents and warrants as follows:

 

	
 
	
(1)
	
Party B has full right and authority to execute and perform this Agreement;

 

	
 
	
(2)
	
Party B’s performance of this Agreement or obligations hereunder does not constitute a violation of any laws, regulations and other agreements binding upon him, other than the Share Pledge Agreement (as may be amended and restated from time to time, the “Share Pledge Agreement”) dated as of the date hereof by and among Party A, Party B and other shareholders of the Company, nor does such performance require the approval or authorization by competent government authority; 

 

	
 
	
(3)
	
There is no litigation, arbitration or other judicial or administrative proceeding that is pending or is likely to have a substantial effect on the performance hereof;

 

	
 
	
(4)
	
Party B has disclosed to Party A all government documents that are likely to have an adverse effect on the performance hereof;

 

	
 
	
(5)
	
Party B has not been declared bankrupt;

 

	
 
	
(6)
	
The Company’s equity interests held by Party B are not subject to any pledge, security, liability or other third party encumbrance, and are free from any third party claim, except for the pledge created pursuant to the Share Pledge Agreement;

 

	
 
	
(7)
	
The Company’s equity interests held by Party B will not be subject to any pledge, liability or other third party encumbrance, nor will such equity interests be transferred, gifted, pledged or otherwise disposed of to any third person other than Party A or its designated person, except for the pledge created pursuant to the Share Pledge Agreement;

 

	
 
	
(8)
	
The Option granted to Party A shall be exclusive, and Party B shall not grant any other third party the Option or similar rights in any other manner;

 

	
 
	
(9)
	
During the term hereof, the Company will conduct its business in accordance with applicable laws, regulations and rules as well as other administrative 

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rules and guidelines promulgated by competent administrative authorities of the PRC, and there will be no violation of any of the foregoing that constitutes a material adverse effect on the Company’s business or assets;

 

	
 
	
(10)
	
Party B will keep the Company in good standing in accordance with good financial and commercial standards and practices, and operate the Company’s business and handle its affairs in a diligent and effective manner, and will make his best efforts to obtain all such permits, licenses, and approvals as may be necessary for the Company’s ongoing operations, and ensure that such permits, licenses, and approvals will not be canceled;

 

	
 
	
(11)
	
Party B will, upon Party A’s request, provide Party A with all operating and financial information of the Company;

 

	
 
	
(12)
	
Before all of the Company’s equity interests or assets are acquired by Party A (or any qualified subject designated by it) through exercising the Option, unless otherwise agreed by Party A in writing, the Company will not engage in such actions as:

 

	
 
	
(a)
	
selling, transferring, pledging, or otherwise disposing of or permitting to create any encumbrance on any legal or beneficial interests in any asset, business or income (unless arising in the normal or ordinary course of business or already disclosed to and agreed in writing by Party A);

 

	
 
	
(b)
	
entering into any transaction that will substantially affect its assets, obligations, operations, equity and other legitimate rights (unless arising in the normal or ordinary course of business or already disclosed to and agreed in writing by Party A);

 

	
 
	
(c)
	
distributing dividends or bonuses to shareholders in any form;

 

	
 
	
(d)
	
inheriting, providing guarantee or permitting to incur any debt without the prior written consent of Party A, except for (i) debts incurred in the ordinary course of business other than incurred by loan; and (ii) debts that have been disclosed to and consented in writing by Party A;

 

	
 
	
(e)
	
entering into any material contract without the prior written consent of Party A, except for contracts entered into in the normal course of business (for the purposes of this paragraph, a contract with a value of more than RMB100,000 shall be deemed a material contract); and;

 

	
 
	
(f)
	
merging with or acquiring any other persons or making any investments in other persons without the prior written consent of Party A. 

 

	
 
	
(13)
	
Before all of the Company’s equity interests or assets are acquired by Party A (or any qualified subject designated by it) through exercising the Option, unless otherwise agreed by Party A in writing, Party B, individually or jointly with any other shareholder of the Company, will not engage in such actions as:

 

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(a)
	
supplementing, modifying or amending any constitutional document of the Company in any form, which supplement, modification or amendment will substantially affect the Company’s assets, obligations, operations, equity and other legitimate rights (other than to make an additional capital contribution in proportion to his shareholding as required by applicable laws);

 

	
 
	
(b)
	
causing the Company to enter into any transaction that will substantially affect its assets, obligations, operations, equity and other legitimate rights (unless arising in the normal or ordinary course of business or already disclosed to and agreed in writing by Party A);

 

	
 
	
(c)
	
causing the board of shareholders of the Company to pass any resolution on distribution of dividends or bonuses;

 

	
 
	
(d)
	
selling, transferring, pledging, or otherwise disposing of or permitting to create any encumbrance on any legal or beneficial interests in any equity without the prior written consent of Party A, except for the purpose of performing the Share Pledge Agreement;

 

	
 
	
(e)
	
causing the board of shareholders of the Company to approve the sale, transfer, pledge or otherwise disposition of or permission to create any encumbrance on any legal or beneficial interests in any equity without the prior written consent of Party A, except for the purpose of performing the Share Pledge Agreement;

 

	
 
	
(f)
	
causing the board of shareholders of the Company to approve any merger with or acquisition of any other persons or investment in other persons without the prior written consent of Party A;

 

	
 
	
(g)
	
immediately notifying Party A of the occurrence or possible occurrence of any litigation, arbitration or administrative proceeding with respect to the equity interests owned by it;

 

	
 
	
(h)
	
causing the board of shareholders of the Company to vote for the transfer of the equity interests acquired hereunder, upon which transfer (i) Party B shall and shall cause the Company to amend its articles of association to reflect the transfer of such equity interests from Party B to Party A or Party A’s designated person and other changes described herein, and forthwith go through change registration procedures with competent PRC authority, and (ii) Party B shall and shall cause the Company to appoint any person designated by Party A or its designated person as the new director and the new legal representative by resolution passed at a shareholders’ meeting;

 

	
 
	
(i)
	
executing all such documents, taking all such actions, filing all such complaints or raising all such defenses against all claims as necessary or appropriate to retain ownership of his equity interests;

 

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(j)
	
immediately upon Party A’s request from time to time, unconditionally transferring his equity interests to Party A’s designated attorney-in-fact at any time, and waiving his right of first refusal with respect to the transfer of such equity interests to other existing shareholders; and;

 

	
 
	
(k)
	
strictly complying with the provisions of this Agreement and other contracts jointly or severally executed by Party B and Party A, practicably performing the obligations hereunder and thereunder, and refraining from committing any act/omission that will affect the validity and enforceability hereof and thereof. 

 

	
3.2
	
Covenants

 

	
 
	
(1)
	
Party B hereby covenants to Party A that he will bear all costs and expenses incurred in connection with equity transfer and complete all such procedures as may be necessary for Party A or its designated person to become a shareholder of the Company, including, without limitation, assisting Party A in obtaining requisite approvals of competent government authority with respect to equity transfer and submitting to competent AIC the relevant equity delivery agreement in an effort to amend the Company’s articles of association or shareholder register and make other adjustments. 

 

	
 
	
(2)
	
Party B covenants that he shall, within ten (10) business days after receipt of the equity transfer price paid by Party A or its designated person upon exercise of the Option hereunder, fully refund to Party A or its designated person such equity transfer price; meanwhile, Party B acknowledges that he has obtained corresponding compensation from Party A. 

 

	
 
	
(3)
	
Party B hereby represents and warrants to Party A that, as of the execution date hereof and each transfer date:

 

	
 
	
(a)
	
Party B has the power and ability to execute and deliver this Agreement and any equity transfer agreement to which he is a party and which is executed with respect to each transfer of the acquired equity interests pursuant to this Agreement (each “Transfer Agreement”), and to perform his obligations hereunder and thereunder. This Agreement and each Transfer Agreement to which he is a party, upon being executed, will constitute his legal, valid and binding obligations, enforceable against him in accordance with their terms;

 

	
 
	
(b)
	
Neither his execution and delivery of this Agreement or any Transfer Agreement nor his performance of obligations hereunder or thereunder will: (i) constitute a violation of any applicable PRC laws; (ii) contravene the articles of association or other organizational documents of Party B; (iii) constitute a breach of any contract or instrument to which he is a party or by which he is bound, or constitute a default thereunder; (iv) constitute a breach of any condition with respect to the grant and (or) survival of any permit or approval issued to him; or (v) result in suspension or revocation or attaching any condition to any permit or approval issued to him;

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(c)
	
Party B has a good and merchantable title to the equity interest held by it in the Company. Except for the Equity Interest Pledge Agreement, Party B has not placed any security interest on such equity interest;

 

	
 
	
(d)
	
There are no outstanding debts, except for (i) debts incurred in the ordinary course of business of Party B; and (ii) debts that have been disclosed to and consented in writing by Party A. 

 

	
 
	
(e)
	
The Company will comply with all laws and regulations applicable to the acquisition of assets; and;

 

	
 
	
(f)
	
There is no ongoing, pending or threatened litigation, arbitration or administrative proceeding with respect to the Company or its equity interests or assets. 

 

	
4.
	
Default

 

In the event that either Party hereto commits a breach of any of its or his representations, warranties, covenants or obligations hereunder, then the breaching Party shall compensate the non-breaching Party for actual losses sustained thereby.

 

	
5.
	
Governing Law and Dispute Resolution

 

	
5.1.
	
Governing Law

 

The conclusion, validity, interpretation and performance of and resolution of disputes from this Agreement shall be governed by the laws of the PRC. 

 

	
5.2.
	
Dispute Resolution

 

Any and all disputes arising from the interpretation and performance of this Agreement shall be firstly resolved by the Parties through amicable negotiations. Should the Parties be unable to resolve such dispute through negotiations within thirty (30) days after a Party’s written notice to the other Party to that effect, then either Party may refer the same to Shanghai Arbitration Commission for arbitration in accordance with its arbitration rules then in effect. The arbitration proceedings shall be conducted in Chinese. The arbitral award shall be final and binding upon the Parties. 

 

	
6.
	
Taxes and Fees

 

The Parties shall, in accordance with the laws of the PRC, bear any and all transfer and registration taxes, expenses and fees incurred thereby or levied thereon respectively in connection with the preparation and execution of this Agreement and each Transfer Agreement and the consummation of transactions contemplated hereunder and thereunder. 

 

	
7.
	
Notices

 

Any notice or other communication required to be sent by either Party or the 

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Company hereunder shall be written in Chinese and sent by personal delivery, mail or fax to the designated address notified by the other Party thereto from time to time. Any notice shall be deemed to have been duly delivered: (a) if delivered personally, on the date of delivery; (b) if sent by mail, on the tenth (10th) day following the date of posting (indicated by the postmark) of a registered air mail, postage prepaid, or on the fourth (4th) day upon delivery to an internationally recognized courier service; or (c) if sent by fax, at the time of receipt shown on the transmission confirmation receipt.

 

	
8.
	
Confidentiality

 

The Parties acknowledge and confirm that any oral or written information exchanged between them in connection with this Agreement are confidential. Both Parties shall keep all such information confidential and, without the prior written consent of the other Party, may not disclose any confidential information to a third party, except for: (a) any information that is already known or will be known to the public for reasons other than unauthorized disclosure by the Party receiving such information, any of its Affiliates or their respective personnel; (b) any information required to be disclosed by applicable laws; or (c) any information required to be disclosed by either Party to its or his legal or financial consultant in connection with the transaction hereunder, provided that such legal or financial consultant shall be subject to confidentiality obligations similar to those provided herein. Any disclosure of confidential information made by any staff member of or institution engaged by either Party shall be deemed to be made by such Party itself, for which such Party shall be liable in accordance with this Agreement. This provision shall remain in force regardless of the termination of this Agreement for any reason. 

 

	
9.
	
Further Assurance

 

The Parties agree to, as soon as practicable, execute all such documents and take all such further actions as reasonably required or beneficial for the implementation of the provisions and purpose of this Agreement.

 

	
10.
	
Miscellaneous

 

	
10.1.
	
Amendment, Modification and Supplement

 

Any amendment, modification and supplement hereto must be made in writing and signed by the Parties. 

 

	
10.2.
	
Compliance with Laws and Regulations

 

The Parties shall and shall cause their business operations to comply with all laws and regulations that have been officially published by the PRC and made available to the public.

 

	
10.3.
	
Entire Agreement

 

This Agreement, together with any written amendments, supplements or modifications hereto made hereafter, constitutes the entire agreement reached by the Parties with respect to the subject matter hereof, and supersedes all prior oral or written 

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negotiations, representations and agreements between the Parties with respect thereto. 

 

	
10.4.
	
Headings

 

The headings used herein are for convenience of reference only and shall not be used to construe, explain or otherwise affect the meaning of any of the provisions hereof.

 

	
10.5.
	
Language

 

This Agreement is written in Chinese and executed in two (2) originals. 

 

	
10.6.
	
Severability. 

 

If any one or more provisions hereof are determined to be invalid, illegal or unenforceable in any respect under any applicable laws or regulations, the validity, legality or enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby. The Parties shall endeavor in good faith negotiations to replace such invalid, illegal or unenforceable provision with a valid, legal or enforceable provision, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provision. 

 

	
10.7.
	
Successors

 

This Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties.

 

	
10.8.
	
Survival

 

Any obligation arising from or becoming due in connection with this Agreement prior to the expiration or early termination hereof shall survive such expiration or early termination.

 

Articles 5 and 8 and this Article hereof shall survive the termination of this Agreement.

 

	
10.9.
	
Waiver

 

Either Party may waive any terms or conditions hereof, provided that such waiver must be made in writing. No waiver made by either Party of any breach by the other Party under certain circumstances shall operate as a waiver of any similar breach by the other Party under any other circumstances.

 

IN WITNESS WHEREOF, the Parties have caused their respective authorized representatives to execute this Agreement as of the date first set forth above. 

 

 

(Remainder of this page is intentionally left blank)

 

 

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(Signature Page to the Option Purchase Agreement)

 

 

	
Shanghai Aihui Trading Co., Ltd. (Seal)

	
/s/ Shanghai Aihui Trading Co., Ltd.

	
 

	
By:
	
 
	
/s/ Yike CHEN

	
Name:
	
 
	
Yike CHEN

	
Title:
	
 
	
Legal Representative

 

 

 

 

(Signature Page to the Option Purchase Agreement)

 

	
Xianxing HUANG

	
 
	
 

	
By:
	
 
	
/s/ Xianxing HUANGrere-ex438_83.htm

Exhibit 4.38

 

Share Pledge Agreement

 

This Share Pledge Agreement (this “Agreement”) is entered into by and between the following parties on March 17, 2022. 

 

	
 
	
(1)
	
Shanghai Aihui Trading Co., Ltd. (a wholly foreign-owned enterprise duly incorporated and validly existing under the laws of the PRC) with its registered address at Room 611, Building 1, 1616 Changyang Road, Yangpu District, Shanghai (the “Pledgee”); and

 

	
 
	
(2)
	
Xianxing HUANG ((Exit-Entry Permit Number for Travelling to and from Hong Kong and Macao: ***) (the “Pledgor”). 

 

WHEREAS, the Pledgor holds the equity interests in Shanghai Wanwuxinsheng Environmental Protection Technology Group Co., Ltd. (a limited liability company duly incorporated and validly existing under the laws of the PRC with its registered address at Room 1101-1103, No. 433 Songhu Road, Yangpu District, Shanghai (the “Company”) in proportion to the capital contribution as set out below:

 

	
Shareholder
	
Subscribed Capital Contribution
	
Shareholding Percentage

	
Xianxing HUANG
	
RMB500,000
	
1.0000%

 

WHEREAS, (i) the Company (formerly known as: Shanghai Yueyee Network Information Technology Co., Ltd.) and the Pledgee entered into the Exclusive Technical Consulting and Management Services Agreement on August 31, 2012 (including any and all subsequent amendments thereto and restatements thereof, the “Service Agreement”); (ii) the Company, the Pledgee and its shareholders entered into the Business Operation Agreement on August 31, 2012 (including any and all subsequent amendments thereto and restatements thereof, the “Business Operation Agreement”); (iii) the Company, the Pledgee and its shareholders entered into the Voting Proxy Agreement on August 31, 2012 (including subsequent amendments thereto and restatements thereof, the “Voting Proxy Agreement”); (iv) the Company, the Pledgee and the Pledgor entered into the Joinder Agreement upon execution hereof (including subsequent amendments thereto and restatements thereof, the “Joinder Agreement”), and thereby entered into the Business Operation Agreement and Voting Proxy Agreement as the Founding Shareholder and the Principal respectively; (v) the Pledgor issued the Power of Attorney to the Pledgee upon execution hereof (including subsequent amendments thereto and restatements thereof, the “Power of Attorney”); (vi) the Pledgee and the Pledgor entered into the Option Purchase Agreement upon execution hereof (including subsequent amendments thereto and restatements thereof, the “Option Purchase Agreement”) (the Service Agreement, the Business Operation Agreement, the Voting Proxy Agreement, the Joinder Agreement, the Power of Attorney and the Option Purchase Agreement are hereinafter referred to collectively as the “Master Agreement”), pursuant to which the Company and/or the Pledgor shall be obligated to pay the service fees and relevant interest, liquidated damages, compensations and other losses caused to the Pledgee as a result of any default committed by the Company and/or the Pledgor (the “Secured Obligations”);

 

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WHEREAS, the Pledgor agrees to pledge his equity interest in the registered capital of the Company to the Pledgee to guarantee (i) the performance of the aforementioned Secured Obligations by the Pledgor and the Company, and (ii) the performance of all the contractual obligations of the Pledgor and the Company under the Master Agreement (“Contract Obligations”), and the Pledgee is willing to accept such pledge in accordance with the terms and conditions set forth herein. 

 

NOW, THEREFORE, the Pledgor and the Pledgee agree as follows:

 

	
1.
	
Pledge

 

	
1.1
	
Subject Matter of Pledge

 

The subject matter pledged by the Pledgor to the Pledgee hereunder shall be his equity interests in the Company’s registered capital, whether now owned or hereafter acquired by the Pledgor, together with all dividends and bonuses acquired therefrom during the term hereof (the “Pledged Equity Interests”) in which the Pledgor pledges to the Pledgee his equity interests held in the Company in an amount of RMB500,000. 

 

	
1.2
	
Pledge

 

The Pledgor is willing to pledge the Pledged Equity Interests described above to guarantee the performance of all Secured Obligations and Contractual Obligations by the Pledgor and the Company.

 

	
1.3
	
Realization of Pledge 

 

In the event that (i) the Company fails to perform the Secured Obligations pursuant to the Master Agreement, or (ii) the Pledgor or the Company fails to perform the Contractual Obligations pursuant to the Master Agreement, the Pledgee shall dispose of the Pledged Equity Interests in accordance with the Civil Code of the People’s Republic of China and other pertinent laws and regulations, and shall have the right to firstly by law get compensated from the proceeds of such disposal and apply them to the satisfaction of the Secured Obligations and payment of any other relevant expenses. It is agreed that the proceeds acquired under this Article shall be applied in the following order of priority: (1) the payment of all taxes incurred due to the disposal of the Pledged Equity Interests; (2) the repayment of outstanding Secured Obligations owed by the Pledgor; (3) if there remains any balance upon deduction of the payments set forth in the preceding Items from such proceeds, in the absence of any payable by the Pledgor or the Company to the Pledgee, the Pledgee shall refund such balance to the Pledgor. In such case, the Pledgor, as a shareholder of the Company, agrees to waive his right of first refusal and agrees that the Pledgee has the right to purchase such Pledged Equity Interests.

 

Unless otherwise agreed in writing by the Pledgee in writing upon execution hereof, the pledge hereunder may be released subject to the Pledgee’s written approval and only to the extent that the Company and the Pledgor have duly performed all their obligations and responsibilities under the Master Agreement. In the event that the Pledgor fails to fully perform all or any part of their obligations or responsibilities under the Master Agreement as of the expiration thereof, the Pledgee remains entitled to the pledge 

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hereunder until all such obligations and responsibilities have been fully performed.

 

 

	
1.4
	
Term of Pledge

 

The pledge hereunder shall take effect as of the date on which the pledge of the Pledged Equity Interests hereunder is registered with competent administration for market regulation, and shall lapse upon the satisfaction of all Secured Obligations and performance of all Contractual Obligations.

 

	
2.
	
Representations and Warranties

 

	
2.1
	
The Pledgor hereby represents and warrants to Pledgee that:

 

	
 
	
(1)
	
The Pledgor is the legal owner of the Pledged Equity Interests and has the right to pledge the same to the Pledgee, whereupon the Pledgee will not be legally or factually inhibited from exercising the pledge. 

 

	
 
	
(2)
	
The Pledgor has obtained all such approvals and authorizations as may be necessary to execute this Agreement, and this Agreement is valid and binding upon the Pledgor, enforceable against the Pledgor in accordance with its terms. 

 

	
 
	
(3)
	
The execution and performance of this Agreement by the Pledgor will not constitute a violation of any other agreement to which he is a party (other than the Option Purchase Agreement) or any applicable laws and regulations and relevant government approvals, licenses or authorizations by which he is bound. 

 

	
 
	
(4)
	
There is no security interest, right of set-off or other similar encumbrance on the Pledged Equity Interests on the execution date hereof, except for the option granted to the Pledgee under the Option Purchase Agreement.

 

	
 
	
(5)
	
At no time shall the exercise of the Pledgee’s rights by its board of directors pursuant to this Agreement be interfered with by any other party, unless by judicial or administrative authorities. 

 

	
 
	
(6)
	
Without the prior written consent of the Pledgee, the Pledgor shall not transfer or otherwise dispose of the Pledged Equity Interests (or any part thereof), nor shall the Pledgor directly or indirectly cause or allow any other encumbrance to be created on the Pledged Equity Interests, other than the option granted by the Pledgor to the Pledgee pursuant to the Option Purchase Agreement. 

 

	
 
	
(7)
	
Without the prior written consent of the Pledgee, the Pledgor shall not change or allow the change of the Pledged Equity Interests that may decrease the value of the Pledged Equity Interests (except for the purpose of performing the Master Agreement). 

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(8)
	
There is no pending civil, administrative or criminal proceeding, administrative penalty or arbitration with respect to the Pledged Equity Interests on the execution date hereof. 

 

	
 
	
(9)
	
There is no outstanding tax or cost or legal proceeding or procedure that should be completed but not completed with respect to the Pledged Equity Interests on the execution date hereof. 

 

	
 
	
(10)
	
Pledgor agrees to execute an irrevocable proxy power of attorney. 

 

	
 
	
(11)
	
The Pledgor agrees that the exercise by the Pledgee of its rights pursuant to this Agreement shall not be interrupted or hindered by the Pledgor or any of his successors or assigns or any other person. 

 

	
 
	
(12)
	
All provisions hereof represent the true intention of the Pledgor, and are legally binding upon the Pledgor. In the event that the Pledgor fails to perform or fully perform any of his warranties, covenants, agreements or representations, the Pledgor shall indemnify the Pledgee against actual losses incurred thereby. 

 

	
2.2
	
The Pledgee hereby represents and warrants that:

 

	
 
	
(1)
	
Pledgee is a wholly foreign-owned enterprise duly incorporated and validly existing under the laws of the People's Republic of China. 

 

	
 
	
(2)
	
Pledgee has obtained all necessary approvals and authorizations as may be necessary to execute this Agreement, and this Agreement is valid and binding upon the Pledgee. 

 

	
3.
	
Effectiveness and Term

 

	
 
	
3.1
	
This Agreement shall become effective as of the date it is signed by authorized representatives of the parties. The pledge hereunder shall take effect on the date of completion of the pledge registration procedures of the Pledged Equity Interests with competent administration for market regulation at the place of registration of the Company.

 

	
 
	
3.2
	
It is agreed to record the pledge of the Pledged Equity Interests in the Company’s shareholder register on the execution date hereof.

 

	
 
	
3.3
	
This Agreement shall terminate upon the termination of the Master Agreement by law and the satisfaction of all Secured Obligations in accordance with the terms and conditions contained therein. 

 

	
4.
	
Possession and Custody of Share Certificates

 

	
4.1
	
During the term of the pledge set forth herein, the Pledgor shall deliver to the Pledgee the possession of an original copy of their respective share certificates issued by the Company. The Pledgor shall deliver an original copy of such share 

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certificates to the Pledgee within five (5) business days of the execution date hereof, and shall furnish the Pledgee with proof evidencing that the pledge hereunder has been duly recorded in the shareholder register, and shall complete all such approvals, registrations and filings as required by the laws of the People’s Republic of China (including but not limited to the registration of the pledge of the Pledged Equity Interests with competent administration for market regulation at the place of registration of the Company). 

 

	
4.2
	
To the extent required by law to change any pledge related matter recorded in the Company’s shareholder register, the Pledgor shall record such change within fifteen (15) days thereof and go through relevant change registration procedures with competent administration for market regulation at the place of registration of the Company. 

 

	
4.3
	
During the term of the pledge, the Pledgor shall instruct the Company not to distribute any dividend or bonus or adopt any profit distribution plan; if the Pledgor acquires monetary interests of any nature from the Pledged Equity Interests other than dividends, bonuses or other profit distribution plans, the Pledgor shall, upon the request of the Pledgee, instruct the Company to remit relevant funds directly into the Pledgee’s designated bank account, which funds shall not be used by the Pledgor without the prior written consent of the Pledgee. 

 

	
4.4
	
During the term of the pledge, if the Pledgor acquires additional equity interests as a result of the distribution plan adopted by the Company for its shareholders or their additional capital contributions to the Company or otherwise, then such additional equity interests shall automatically become the Pledged Equity Interests hereunder, and the Pledgor shall complete all such procedures as may be necessary to pledge such equity interests upon acquisition thereof. In the event that the Pledgor fails to complete relevant procedures as per the preceding provision, the Pledgee shall have the right to forthwith realize the pledge pursuant to Article 6 hereof. 

 

	
4.5
	
In the case of the Pledgor being the Pledgee’s employees, if either Pledgor terminates his employment relationship with the Pledgee during the term of the pledge, the Pledgor hereby agrees and covenants that he will transfer all of the Company’s equity interests held by him to any third person designated by the Pledgee, whereupon such third person shall have all rights and obligations of such Pledgor under the Master Agreement. Such covenant shall be irrevocable during the term of this Agreement. 

 

	
5.
	
Event of Default

 

	
5.1.
	
Any one of the following events shall be deemed an event of default hereunder:

 

	
 
	
(1)
	
The Company or any of its successors or assigns fails to timely and fully pay any service fees payable under the Service Agreement, or either Pledgor or any of his successors or assigns fails to perform the Business Operation Agreement and the Option Purchase Agreement;

5

 

 

	
 
	
(2)
	
Any representation, warranty or covenant made by either Pledgor in Article 2 hereof is substantially misleading or incorrect, and/or is breached by such Pledgor;

 

	
 
	
(3)
	
The Pledgor commits a serious breach of any provision hereof;

 

	
 
	
(4)
	
The Pledgor relinquishes the Pledged Equity Interests or arbitrarily transfers or otherwise disposes of the Pledged Equity Interests without the written consent of the Pledgee;

 

	
 
	
(5)
	
Any of the Pledgor’s external loans, guaranties, compensations, undertakings or other obligations (i) is required to be repaid or performed prior to the scheduled due date due to his default hereunder or (ii) becomes due but cannot be repaid or performed as scheduled, thus causing the Pledgee to believe that the Pledgor’s ability to perform his obligations hereunder has been affected, which would have an adverse effect on the Pledgee’s interests;

 

	
 
	
(6)
	
The Pledgor is unable to repay general debts or other debts, which would have an adverse effect on the Pledgee’s interests;

 

	
 
	
(7)
	
This Agreement is rendered illegal or the Pledgor is rendered incapable of continuing to perform his obligations hereunder by reason of the promulgation of applicable laws;

 

	
 
	
(8)
	
Any government consent, license, approval or authorization necessary to render this Agreement to be enforceable, legal or valid is withdrawn, suspended or substantially modified or lapses; or

 

	
 
	
(9)
	
There is any adverse change to any property owned by the Pledgor, causing the Pledgee to believe that the Pledgor’s ability to perform his obligations hereunder has been affected.

 

	
5.2.
	
The Pledgor shall notify the Pledgee in writing as soon as they become aware of or discover the occurrence of any event described in Article 5.1 or any event that might give rise thereto.

 

	
5.3.
	
Unless any of the above events set out in Article 5.1 has been solved to the satisfaction of the Pledgee, the Pledgee may, at the time of occurrence of such event or at any time thereafter, (a) send a written default notice to the Pledgor, requesting the Pledgor to forthwith make all outstanding payments and other payables under the Service Agreement, or promptly perform the Option Purchase Agreement or the Business Operation Agreement, or (b) exercise the pledge pursuant to Article 6 hereof.

 

	
6.
	
Exercise of Pledge

 

	
6.1
	
Prior to the satisfaction of all Secured Obligations and performance of all Contractual Obligations hereunder, the Pledgor shall not transfer or otherwise dispose of the Pledged Equity Interests without the Pledgee’s written consent.

6

 

 

	
6.2
	
The Pledgee shall issue to the Pledgor a default notice in exercising the pledge. 

 

	
6.3
	
Subject to Article 5.3, the Pledgee may exercise the pledge concurrently with the giving of the default notice as per Article 5.3 or at any time thereafter.

 

	
6.4
	
The Pledgee shall have the priority to be indemnified in the form of all or part of the Pledged Equity Interests based on the conversion value thereof, or from the proceeds from the auction or sale of all or part of the Pledged Equity Interests in accordance with legal procedures, until the repayment of all outstanding service fees and other payables under the Service Agreement and the full performance of the Option Purchase Agreement and the Business Operation Agreement.

 

	
6.5
	
The Pledgor shall not hinder the Pledgee from and shall provide necessary assistance to the Pledgee in exercising the pledge pursuant to this Agreement in order for the Pledgee to realize such pledges.

 

	
7.
	
Miscellaneous

 

	
7.1
	
This Agreement is ancillary to the Master Agreement, provided that the validity of this Agreement shall not be affected thereby.

 

	
7.2
	
Any modification, extension, transfer and early termination of this Agreement shall be subject to the prior written consent of the Pledgee.

 

	
7.3
	
This Agreement shall be governed by and construed in accordance with the laws of the People’s Republic of China.

 

	
7.4
	
All disputes arising from or in connection with this Agreement shall be resolved by the parties through amicable negotiations. Should such negotiations fail, either party may refer the dispute to Shanghai Arbitration Commission for arbitration in accordance with its arbitration rules then in effect. The arbitration proceedings shall be conducted in Chinese. The arbitral award shall be final and binding on the parties.

 

	
7.5
	
During the term hereof, any moratorium/extension granted by the Pledgee to the Pledgor with respect to any default or delay in performance thereby shall not affect, impair or restrict any right or power conferred upon the Pledgee hereunder and as a creditor under applicable laws and regulations, and shall not be deemed to be its consent to such default, or constitute its waiver of any existing or future default thereby.

 

	
7.6
	
The Pledgor shall not be entitled to grant or transfer any of their rights and obligations hereunder without the prior consent of the Pledgee. This Agreement shall be binding upon the Pledgor and his respective successors, and upon the Pledgee and each of its successors and assigns. The Pledgee may at any time transfer all or any of its rights and obligations under the Master Agreement to its designated person (natural person/legal person), whereupon the transferee shall have all rights and obligations of the Pledgee hereunder as if such 

7

 

		
transferee were a party hereto. After the Pledgee has been changed as a result of the said transfer, the new parties to the pledge shall execute a new pledge contract.

 

	
7.7
	
All costs and out-of-pocket expenses in connection with this Agreement shall be for the account of the Pledgee.

 

	
7.8
	
This Agreement is written in Chinese and executed in five (5) originals, with one (1) original to be held by the Pledgor and Pledgee, one (1) original submitted to competent administration for market regulation, and the remaining original to be held by the Company.

 

	
7.9
	
IN WITNESS WHEREOF, the parties hereto have caused their respective authorized representatives to execute this Agreement as of the date first written above.

 

[Remainder of this page is intentionally left blank]

 

 

8

 

[Signature Page to the Share Pledge Agreement]

 

 

Pledgee:

 

Shanghai Aihui Trading Co., Ltd. 

 

 

	
By:
	
 
	
/s/ Yike CHEN

	
Name:
	
 
	
Yike CHEN

	
Title:
	
 
	
Legal Representative

 

 

 

[Signature Page to the Share Pledge Agreement]

 

 

Pledgor:

 

Xianxing HUANG

 

 

	
By:
	
 
	
/s/ Xianxing HUANG

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