Document:

Exhibit 4.38

 

EXCLUSIVE TECHNICAL SUPPORT AGREEMENT

 

This Agreement is entered into in Shanghai as of December 31, 2013 by and between the following Parties:

 

Party A: Shanghai Yifang Software Technology Co., Ltd.

Address: Room 213, Building 10, No. 1766 Gongye Road, Jinhui Town, Fengxian District, Shanghai

 

Party B: Shanghai Kushuo Information Technology Co., Ltd.

Address: Room A482, Building 7, No. 700 Wanrong Road, Zhabei District, Shanghai

 

WHEREAS:

 

(1)                                 Party A is a limited liability company established and duly existing in Shanghai, China, which mainly engages in the business of 1) the design, development and production of computer software and hardware; 2) technology transfer, technology consulting and technology service, 3) the provision of investment managerial consulting services, enterprise management consulting services and business information consulting services.

 

(2)                                 Party B is a limited liability company registered in Shanghai, China, which mainly engages in the business of 1) technology development and technology services, 2) the provision of investment managerial consulting services, and enterprise management consulting services.

 

(3)                                 Required for its business, Party B decides to engage Party A as its exclusive technology service provider, to provide Party B with the relevant services such as technology transfer, technology license, technology service and provision of equipment. Party A agrees to provide Party B with the Technology Service in accordance with this Agreement.

 

THEREFORE, through amicable consultations, the Parties have reached the following agreements on the detailed matters related to the provision of exclusive Technology Service by Party A to Party B.

 

Article 1 Definitions and Interpretation

 

1.1                               “Websites” shall mean all websites operated by Party B.

 

1.2                               “Internet Information Service” shall mean the business of providing the Internet users with various information services via the Internet, including without limitation, search engine, Internet publication, online games, email and development of websites.

 

1.3                               “Technology Service” shall mean all technological service provided by Party A to Party B in accordance with this Agreement, including without limitation, technology transfer, technology license, technology service and provision of equipment.

 

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Article 2 Exclusive Cooperation

 

2.1                               Party A is Party B’s exclusive technology service provider. Unless any event described in Article 2.2 or 2.3 of this Agreement occurs, all of the Technology Service (including without limitation, technology transfer, technology license, technology service and provision of equipment) required for any of the business operated by Party B (including without limitation, the E-Commerce, Internet Information Service and the Internet Advertising Service) shall be provided by Party A on an exclusive basis. Without Party A’s prior written consent, Party B shall not seek any third party other than Party A to provide any part of the Technology Service under this Agreement in any manner.

 

2.2                               Party B agrees that in case Party A objectively does not have the ability to provide Party B with certain part of the Technology Service, Party A may exclusively designate an appropriate third party to provide Party B with such part of the Technology Service in accordance with the terms and conditions provided in this Agreement. Party B further agrees that in any case, Party A is entitled to entrust, without any reason, any properly qualified third party to provide Party B with the Technology Service that should, pursuant to this Agreement, be provided by Party A to Party B. Party B agrees to accept the Technology Service provided by such appropriate third party entrusted by Party A.

 

2.3                               In case of any of the following circumstances, Party B is entitled to, at its own discretion, seek any third party to provide the Technology Service:

 

2.3.1                     Party A voluntarily abandons its right to act as an exclusive technology service provider and gives a written consent to the provision of the Technology Service by a third party to Party B;

 

2.3.2                     Party A is objectively unable to provide Party B with certain part of the Technology Service and fails to designate any appropriate third party to provide Party B with such part of the Technology Service; or

 

2.3.3                     Party A decides to neither provide Party B with certain part of the Technology Service nor designate any appropriate third party to provide Party B with such part of the Technology Service.

 

Article 3 Technology Transfer

 

3.1                               Unless any event described in Article 2.2 or 2.3 of this Agreement occurs, all of the technology required to be purchased for any of Party B’s business shall be provided by Party A on an exclusive basis. Party A will try its best to develop and transfer to Party B the technology that is required for Party B’s business and owned by Party A.

 

3.2                               The Parties shall negotiate with each other to enter into specific technology transfer contracts to expressly specify the detail matters such as the technology to be transferred, transfer fees and payment.

 

Article 4 Technology License

 

4.1                               Unless any event described in Article 2.2 or 2.3 of this Agreement occurs, all of the technology required to be licensed for any of Party B’s business shall be provided by Party A on an exclusive basis.

 

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Party A will try its best to license Party B to use the technology owned by Party A, or re-license Party B to use the technology as approved by the owner.

 

4.2                               The Parties shall negotiate with each other to enter into specific technology license contracts to expressly specify the detail matters such as the technology to be licensed, the method to license the technology, license fees and payment.

 

Article 5 Technology Service

 

5.1                               Unless any event described in Article 2.2 or 2.3 of this Agreement occurs, all of the technology service (including without limitation, technology support, technology training and technology consulting, see Appendix I to this Agreement (List of Technology Service) for details) required for any of Party B’s business shall be provided by Party A on an exclusive basis. Party A will try its best to provide Party B with the technology service required for and related to Party B’s business.

 

5.2                               Party B shall provide all necessary assistance to Party A’s provision of technology service, including without limitation:

 

5.2.1                     Party B shall cause its employees to take an appropriately and reasonably prudent attitude when using and operating the system and equipment;

 

5.2.2                     Party B shall notify Party A immediately of any circumstance that may affect Party B’s business;

 

5.2.3                     Party B shall allow Party A and its authorized personnel to enter into, at any reasonable time, the premises owned or rent by Party B to place any system or equipment related to Party B’s business; and

 

5.2.4                     Any other necessary assistance.

 

5.3                               The Parties agree to enter into (if necessary) separate technology service agreements on the details of various technology services during the valid term of this Agreement to specify or adjust the technology services to be provided, the methods to provide such services and the technicians within the framework provided in this Agreement.

 

5.4                               With regard to the technology services provided by Party A to Party B, the Parties agree, based on the number of working hours of Party A’s engineers to provide the technology services to Party B (on an hourly basis), to calculate the fees for the technology services at the following rates:

 

5.4.1                     for the technology service provided by a Party A’s senior engineer to Party B, Party B shall calculate and pay to Party A the technology service fee at the rate of RMB4,000 per hour per capita;

 

5.4.2                   for the technology service provided by a Party A’s mid-level engineer to Party B, Party B shall calculate and pay to Party A the technology service fee at the rate of RMB2,000 per hour per capita; and

 

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5.4.3                     for the technology service provided by a Party A’s junior engineer to Party B, Party B shall calculate and pay to Party A the technology service fee at the price of RMB1,000 per hour per capita.

 

5.4.4                     Party B shall calculate and pay to Party A the technical support fee at the rate of RMB20,000/month;

 

5.4.5                     Party B shall calculate and pay to Party A the technical training fee at the rate of RMB10,000/month;

 

5.4.6                     Party B shall calculate and pay to Party A the technical consulting fee at the rate of RMB20,000/month;

 

5.4.7                     If the agreement is executed after its expiration date, such prices can be re-calculated each year.

 

5.4.8                     The workload of each project: both parties shall budget at the early stage of the project and determine the final settlement of account when the project is finished. The workload shall be calculated according to the final settlement of account.

 

5.4.9                     Time and method of settling accounts: both parties shall settle the account at December 20 each year according to actual situation and issue a sheet of settlement of account for both parties’ confirmation.

 

5.5                               Party A shall, within the first five working days of each month, issue a bill to Party B of the working hours for the technology services provided by Party A to Party B during the last month at the rates agreed by the Parties. The bill shall indicate the level of Party A’s engineers who provided the technology services to Party B and their respective working hours, and Party B shall, within three working days after its receipt of the bill, pay to Party A the technology service fee in accordance with the amount in the bill.

 

Article 6 Provision of Equipment

 

6.1                               Unless any event described in Article 2.2 or 2.3 of this Agreement occurs, all of the equipment required for any of Party B’s business shall be provided by Party A on an exclusive basis or be provided by the equipment supplier designated by Party A. The specific way to provide such equipment (including without limitation, lease, sales and transfer) shall be decided by Party A unilaterally.

 

6.2                               The Parties shall negotiate with each other to enter into specific equipment transfer agreements or equipment lease agreements to expressly specify the detail matters such as the method to provide such equipment, price and term.

 

Article 7 Payment

 

7.1                               For the Technology Service provided by Party A to Party B, Party B shall, based on actual circumstances, pay to Party A the technology transfer fee, technology license fee, technology service fee and equipment fee etc. in accordance with the relevant provisions in this Agreement.

 

7.2                               For the above fees paid by Party B, Party A shall issue corresponding invoices to Party B.

 

7.3                               If Party A designates a third party to provide Party B with the Technology Service in accordance with this Agreement, Party A may choose any of the following ways of payment for such third party’s fees and require Party B to implement:

 

7.1.1                     Party B pays the fees for the Technology Service to the third party directly; or

 

7.1.2                     Party B pays the fees for the Technology Service to Party A directly and Party A is responsible for settling with such third party.

 

7.4                               Where Party A designates a third party to provide Party B with the Technology Service in accordance with this Agreement, if Party A, for whatever reasons, assumes any joint and several liability to such third party due to Party B’s reasons, Party B shall compensate Party A for all economic losses incurred thereby.

 

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Article 8 Ownership of Assets

 

8.1                               The Parties agree that the following assets originated from the Technology Service provided by Party A to Party B shall be owned by Party A:

 

8.1.1                     the words, images, layouts and any other graphic designs or information content created or made by Party A, except those whose copyrights belong to third parties;

 

8.1.2                     the database (including without limitation, the database storing contents and the database storing information of registered users) developed by Party A for Party B and all of the content contained therein; and

 

8.1.3                     any other tangible or intangible assets originated or derived from the Technology Service provided by Party A to Party B in accordance with this Agreement, except those owned by Party B on clear grounds.

 

8.2                               Party B recognizes Party A’s ownership of the assets above and undertakes not to make any claim on any assets above. Where necessary and requested by Party A, Party B shall provide all necessary assistance (including without limitation, issuing corresponding certificates) to make clear Party A’s ownership of the assets above.

 

8.3                               During the term of cooperation between the Parties, except as specifically provided in this Agreement or other relevant written agreements that the ownership shall be transferred from Party A to Party B, all assets provided to Party B such as equipment, technology and software shall still be owned by Party A, and Party B shall only have the right of use over the assets during the valid term of this Agreement.

 

Article 9 Confidentiality

 

9.1                               Either Party shall keep confidential any confidential material and information of the other Party known or accessed due to the execution or performance of this Agreement (the “Confidential Information”). Without the other Party’s written consent, neither Party shall disclose, give or transfer such Confidential Information to any third parties.

 

9.2                               If requested by either Party, the other Party shall return, destroy, or otherwise dispose of all of the documents, materials, or software that contain any Confidential Information as requested, and stop using the Confidential Information.

 

9.3                               The Parties’ obligations under this Article shall survive the termination of this Agreement. Either Party shall still comply with the confidentiality terms of this Agreement and fulfill the confidentiality obligations as promised, until the other Party gives consent to the release of such obligations or as a matter of fact, violation of the confidentiality terms herein will not cause damage of any form to the other Party.

 

Article 10 Payment of Taxes

 

10.1                        The Parties shall respectively pay taxes to relevant tax authorities in accordance with relevant laws, regulations and State policies.

 

10.2                        In the event that either Party pays any tax for the other Party, the paying Party shall submit the tax certificate to the payable Party as soon as possible, and the payable Party shall compensate the equivalent amount to the paying Party within seven days after the receipt of such tax certificate.

 

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Article 11 Representations, Covenants and Warranties

 

11.1                        Either of the Parties represents, covenants and warrants to the other Party as follows:

 

11.1.1              It is a company lawfully established and duly existing;

 

11.1.2              It is qualified to conduct the transaction hereunder and such transaction is in line with its business scope;

 

11.1.3              It has full power to enter into this Agreement, and its authorized representative has obtained full authorization to execute this Agreement on behalf of it;

 

11.1.4              It has the ability to perform its obligations hereunder, and such performance will not violate any restrictions of legal documents binding upon it;

 

11.1.5              It is not subject to any liquidation, dissolution or bankruptcy procedures.

 

11.2                        Party B covenants that during the valid term of this Agreement, Party B shall notify Party A of any change in Party B’s shareholding structure thirty days in advance.

 

11.3                        Party B covenants that except as required for the works provided in this Agreement, Party B shall not use or copy the trademarks, signs or company names of Party A or its affiliates without Party A’s prior written consent.

 

11.4                        Party B shall neither conduct, nor allow any third party to conduct any act or omission that is detrimental to Party A’s ownership of technology or any other intellectual property or any other rights of Party A.

 

Article 12 Liability for Breach of Contract

 

12.1                        Either Party’s direct or indirect violation of any provisions herein or failure in assuming or untimely or insufficient assumption of any of its obligations hereunder shall constitute a breach of contract. The non-breaching Party (the “Non-Breaching Party”) is entitled to send to the breaching Party (the “Breaching Party”) a written notice, requesting the Breaching Party to rectify its breach, take sufficient, effective and timely measures to eliminate the effects of breach, and compensate the Non-Breaching Party for any losses incurred by the breach.

 

12.2                        After the occurrence of breach, in case such breach has made it impossible or unfair for the Non-Breaching Party to perform its corresponding obligations hereunder based on the Non-Breaching Party’s reasonable and objective judgments, the Non-Breaching Party is entitled to send to the Breaching Party a written notice of its temporary suspension of performance of corresponding obligations hereunder, until the Breaching Party stops the breach, takes sufficient, effective and timely measures to eliminate the effects of breach, and compensate the Non-Breaching Party for any losses incurred by the breach.

 

12.3                        The losses of the Non-Breaching Party that should be compensated by the Breaching Party include direct economic losses and any foreseeable indirect losses and extra expenses incurred by the breach, including without limitation, the attorneys’ fee, litigation and arbitration fee, financial expense and travel charge.

 

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Article 13 Force Majeure

 

13.1                        “Force Majeure” shall mean events beyond the reasonable control of the Parties that are unforeseeable or foreseeable but unavoidable, which cause obstruction in, impact on or delay in either Party’s performance of part or all of its obligations in accordance with this Agreement, including without limitation, government acts, natural disasters, wars, hacker attacks or any other similar events.

 

13.2                        The Party affected by Force Majeure may suspend the performance of relevant obligations hereunder that cannot be performed due to Force Majeure until the effects of Force Majeure are eliminated, without having to assume any liability for breach of contract, provided however that, such Party shall endeavor to overcome such events and reduce the negative effects to the best of its abilities.

 

13.3                        The Party affected by Force Majeure shall provide the other Party with valid certificate documents verifying the occurrence of Force Majeure events, which documents shall be issued by the notary office where the events occur (or other appropriate agencies). In case the Party affected by Force Majeure cannot provide such certificate documents, the other Party may request it to assume the liability for breach of contract in accordance with this Agreement.

 

Article 14 Effectiveness, Amendment and Termination

 

14.1                        This Agreement takes effect as of the date when it is signed and stamped by the authorized representatives of the Parties, and shall be terminated on the date when Party B dissolves according to law.

 

14.2                        Unless provided otherwise herein, Party A is entitled to immediately early terminate this Agreement unilaterally by sending a written notice upon any of the followings happening to Party B:

 

14.2.1              Party B breaches this Agreement, and within thirty (30) days after Party A sends out the written notice, fails to rectify its breach, take sufficient, effective and timely measures to eliminate the effects of breach, and compensate Party A for any losses incurred by the breach.

 

14.2.2              Party B is bankrupt or is subject to any liquidation procedure and such procedure is not revoked within seven (7) days; and

 

14.2.3              due to any event of Force Majeure, Party B’s failure to perform this Agreement lasts for over twenty (20) days.

 

14.3                        Except as provided in the immediate precedent clause, Party B agrees that Party A is entitled to early terminate this Agreement at any time by sending a written notice twenty days in advance without any reason. However, Party B is not entitled to early terminate this Agreement unless as provided herein.

 

14.4                        The early termination of this Agreement shall not affect the rights and obligations of the Parties arising out of this Agreement prior to the early termination date.

 

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Article 15 Delivery of Notice

 

15.1                        Notices relevant to this Agreement sent by one Party to the other shall be made in written form and delivered in person, or by fax, telegram, telex or email, or by registered mail (postage paid) or express mail. As to those delivered in person or by fax, telegram, telex or email, the delivery date shall be the date when it is sent; as to those delivered by registered mail (postage paid) or express mail, the delivery date shall be the third day after it is sent.

 

Article 16 Dispute Resolution

 

16.1                        With regard to disputes arising out of the interpretation and performance of the terms hereunder, the Parties shall resolve the disputes through consultations in good faith.

 

16.2                        In case no resolution can be made, the dispute shall be submitted to China International Economic and Trade Arbitration Commission for arbitration in Beijing in accordance with its arbitration rules then effective. The arbitration shall be conducted in Chinese. The arbitration award shall be final and binding upon the Parties.

 

16.3                        The conclusion, effectiveness, implementation and interpretation of this Agreement and resolution of disputes shall all be governed by the PRC laws.

 

Article 17 Miscellaneous

 

17.1                        This Agreement is written in two originals. Each of the Parties shall hold one original with each having the same legal effect.

 

17.2                        The headings in this Agreement are written for the ease of reference only, and in no event shall they affect the interpretation of any terms of this Agreement.

 

17.3                        The Parties may amend and supplement this Agreement in the way of a written agreement. Amendment agreements and supplement agreements executed by the Parties are both part of this Agreement, having the same legal effect as this Agreement.

 

17.4                        In case any term herein becomes all or partly invalid or unenforceable due to the violation of law or governmental regulations or other reasons, the affected part of such term shall be considered to have been removed, provided however that, the removal of the affected part of such term shall not affect the legal effect of the remaining part of such term or other terms herein. The Parties shall conclude new terms through consultations to replace such invalid or unenforceable terms.

 

17.5                        Unless provided otherwise, a Party’s failure or delay in exercising any of the rights, powers or privileges that it is entitled to under this Agreement shall not be considered its waiver of such rights, powers or privileges, nor shall any single or partial exercise of any rights, powers or privileges by a Party preclude its exercise of other rights, powers or privileges.

 

17.6                        This Agreement constitutes all agreements reached by the Parties on the subject matter of the cooperation project, and supersedes any previous or concurrent oral and written agreement, understanding and correspondence relevant to the subject matter of the cooperation project between the Parties. Unless specifically provided herein, there is no other explicit or implicit obligation or covenant between the Parties.

 

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17.7                        Matters not covered in this Agreement shall be determined by the Parties separately through consultations. 

 

Shanghai Yifang Software Technology Co., Ltd.

 

Authorized Representative: /seal/ 

 

Shanghai Kushuo Information Technology Co., Ltd.

 

Authorized Representative: /seal/

 

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Appendix I: List of Technology Service

 

The Parties agree that, the technology services described in this Agreement includes without limitation: 

 

1 Technology Support for Mobile Value-Added Telecommunication Service

 

1.1                               Party A agrees to act as Party B’s technology service provider and provide Party B with the technology services required for the operation of the Mobile Value-Added Telecommunication Service in accordance with the conditions of this Agreement, with the specific content including without limitation, the following items in connection with the Mobile Value-Added Telecommunication Service.

 

1.1.1       Development, update and upgrade of the client side software;

 

1.1.2       Development, update and upgrade of the web server side software;

 

1.1.3       Technology development and maintenance of the database;

 

1.1.4       Technology development of the system;

 

1.1.5       General design scheme of the system;

 

1.1.6       Installation and debugging of the system;

 

1.1.7       Trial run and testing of the system;

 

1.1.8       Installation and debugging of the system’s expansion;

 

1.1.9       Inspection and maintenance of the hardware equipment for operation;

 

1.1.10              Daily maintenance of the system software;

 

1.1.11              Improvement and upgrade of the system software.

 

Article 2 Technology Support for Internet Information Service

 

2.1                               Party A agrees to provide Party B with the technology services in connection with the Internet Information Service. The specific content of the technology services includes without limitation:

 

2.1.1       Development, update and upgrade of the client side software;

 

2.1.2       Development, update and upgrade of the web server side software; 

 

2.1.3       Technology development and maintenance of the database;

 

2.1.4       Technology development of the system, general design, testing, installation and debugging, installation and debugging of the expansion, inspection and maintenance of the hardware equipment for operation, daily maintenance of the software, improvement and upgrade of the software in connection with the Internet Information Service.

 

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2.2                               Compilation, gathering statistics and integration as well as database programming and design of technical platform of various information required to be used by Party B in the operation of the Internet Information Service, including without limitation, news, finance and economics, science and technology, sports, entertainment, games, fashion, education, medical treatment, health, culture and resources of professionals, assisting in the determination of the framework and channel structural design of the same, and provision of content update services at the technical level.

 

2.3                               Providing Party B with design and technical support of web pages, and assisting Party B in providing end users with relaxing and friendly interfaces of various services such as news browsing, shopping, medical treatment, chatting, entertainment, search and registration.

 

2.4                               With regard to the system software required for the website operation that is provided by Party A to Party B, Party A shall provide Party B with materials and documents of the system such as user guide and manual of such system software for the website operation.

 

2.5                               In case that Party B needs to change the system environment of the website, including operating system environment, database environment and so forth, where Party A’s assistance is required, Party A shall provide corresponding solutions.

 

2.6                               Assisting Party B in resolving problems occurred during the process of installation and operation of the website operating equipment.

 

Article 3 Technology Training

 

3.1                               Party A agrees to provide Party B and staff of Party B with the following training:

 

3.1.1       Skills training in respect of the installation and operation of equipment and facilities;

 

3.1.2       Training on providing appropriate customer services or techniques and other aspects;

 

3.1.3       Training on using the on-line editing software.

 

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Article 4 Technology Consulting

 

4.1                               To provide consulting service for the purchase of relevant equipment and software and hardware system required for Party B’s operation of the Internet Information Service, including without limitation, to provide technical advice for the selection and installation and debugging of various tool software, application software and technical platform, and the purchase, types and performance of various matching hardware facilities and equipment.

 

4.2                               With regard to the technical projects designated by Party B, Party A agrees to provide Party B with technology consulting services such as technological demonstration, technological forecasting, special technological investigation and analysis and assessment report.

 

4.3                               To provide technology consulting services for the application of the Internet software, hardware, equipment and system on-line editing software installed or to be installed by Party B.

 

4.4                               To provide Party B with the following information: investigation, analysis and assessment report of the trend, technology, expense and income of domestic, foreign and Party B’s various Internet services (including special Internet services).

 

4.5                               Party B may conduct inquiries or function consulting on specific technical problems with Party A’s technical support department in the way of email, telephone and fax and etc. Party A’s engineers will reply to the questions and assist the clients in resolving the problem.

 

4.6                               In case of emergencies that Party B is unable to handle, Party A’s engineers, upon consent by Party B, may conduct remote login to check the system status and resolve the problem.

 

4.7                               Party A may, within its ability, satisfy the other technology consulting requirements raised by Party B. 

 

[The remainder of this page intentionally left blank]

 

12Exhibit 4.39

 

MASTER TRANSACTION AGREEMENT

 

 

MASTER TRANSACTION AGREEMENT

 

BETWEEN

 

E-HOUSE (CHINA) HOLDINGS LIMITED

 

and

 

LEJU HOLDINGS LIMITED

 

Dated as of March 10, 2014

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 1.
    	
 
    	
DEFINITIONS
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.1
    	
Defined Terms
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 2.
    	
 
    	
DOCUMENTS AND ITEMS TO BE DELIVERED PRIOR TO F-1 FILING
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.1
    	
Documents to be delivered by E-House
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.2
    	
Documents to be delivered by Leju
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 3.
    	
 
    	
THE IPO AND ACTIONS PENDING THE IPO
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.1
    	
Transactions prior to the IPO
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.2
    	
Cooperation
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 4.
    	
 
    	
COVENANTS AND OTHER MATTERS
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.1
    	
Other Agreements and Instruments
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.2
    	
Further Instruments
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.3
    	
Agreement for Exchange of Information
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.4
    	
Auditors and Audits; Financial Statements;   Accounting Matters
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.5
    	
Confidentiality
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.6
    	
Privileged Matters
    	
 
    	
18
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.7
    	
Future Litigation and Other Proceedings
    	
 
    	
21
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.8
    	
Mail and other Communications
    	
 
    	
21
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.9
    	
Certain Services to be Provided by E-House Research   and Training Institute
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.10
    	
Other Inter-Company Services Agreements
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.11
    	
Payment of Expenses
    	
 
    	
22
    

 

 

	
ARTICLE 5.
    	
 
    	
MUTUAL RELEASES; INDEMNIFICATION
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.1
    	
Release of Claims
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.2
    	
Indemnification by Leju
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.3
    	
Indemnification by E-House
    	
 
    	
25
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.4
    	
Procedures for Defense, Settlement and Indemnification   of the Third Party Claims
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.5
    	
Additional Matters
    	
 
    	
27
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.6
    	
Survival of Indemnities
    	
 
    	
27
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 6.
    	
 
    	
DISPUTE RESOLUTION
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
6.1
    	
Dispute Resolution
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 7.
    	
 
    	
MISCELLANEOUS
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.1
    	
Consent of E-House
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.2
    	
Limitation of Liability
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.3
    	
Entire Agreement
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.4
    	
Governing Law and Jurisdiction
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.5
    	
Termination; Amendment
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.6
    	
Notices
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.7
    	
Counterparts
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.8
    	
Binding Effect; Assignment
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.9
    	
Severability
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.10
    	
Failure or Indulgence not Waiver; Remedies   Cumulative
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.11
    	
Authority
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.12
    	
Interpretation
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.13
    	
Conflicting Agreements
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.14
    	
Third Party Beneficiaries
    	
 
    	
32
    

 

 

MASTER TRANSACTION AGREEMENT

 

This Master Transaction Agreement is dated as of March 10, 2014, by and between E-House (China) Holdings Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands (“E-House”), and Leju Holdings Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands (“Leju”) (each of E-House and Leju a “Party” and, together, the “Parties”).

 

Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in Article I hereof.

 

R E C I T A L S

 

WHEREAS, E-House is the registered and beneficial owner of all of the issued and outstanding Ordinary Shares of Leju;

 

WHEREAS, E-House has been engaged in the Leju Business through Leju and/or Leju’s subsidiaries and VIEs, as more fully described in a draft Registration Statement on Form F-1 confidentially submitted for review and comment by the SEC under the Securities Act (as so submitted and as amended from time to time prior to the Live Filing Date, the “Draft IPO Registration Statement”) to be filed publicly with the SEC via its EDGAR system (the date of such public filing, the “Live Filing Date”) following the substantial completion of such review and comment and as financial market conditions permit (as so filed, and as amended thereafter from time to time, the “IPO Registration Statement”);

 

WHEREAS, prior to the date hereof, all the then existing assets and liabilities in connection with the Leju Business have already been transferred to or assumed by Leju and/or its subsidiaries and VIEs;

 

WHEREAS, the Parties currently contemplate that Leju will make an initial public offering (“IPO”) pursuant to the IPO Registration Statement;

 

WHEREAS, the Parties intend in this Agreement, including the Exhibits and Schedules hereto, to set forth and memorialize the principal arrangements between E-House and Leju regarding the relationship of the Parties from and after the filing of the IPO Registration Statement and the consummation of the IPO; and

 

NOW, THEREFORE, in consideration of the mutual agreements, covenants and provisions contained in this Agreement, the Parties, intending to be legally bound, agree as follows:

 

 

ARTICLE 1. DEFINITIONS.

 

1.1                               Defined Terms.  The following capitalized terms have the meanings given to them in this Section 1.1:

 

“Action” means any demand, action, suit, countersuit, claim, counterclaim, arbitration, inquiry, proceeding or investigation by or before any Governmental Authority or any arbitration or mediation tribunal.

 

“ADSs” has the meaning set forth in Section 3.1(c) of this Agreement.

 

“Agreement” means this Master Transaction Agreement, together with the Schedules and Exhibits hereto, as the same may be amended from time to time in accordance with the provisions hereof.

 

“Confidential Business Information” has the meaning set forth in Section 4.5(b)(iii) of this Agreement.

 

“Confidential Information” has the meaning set forth in Section 4.5(b)(i) of this Agreement.

 

“Confidential Technical Information” has the meaning set forth in Section 4.5(b)(ii) of this Agreement.

 

“Contract” means any contract, agreement, lease, license, sales order, purchase order, instrument or other commitment that is binding on any Person or any part of its property under applicable law.

 

“Control Ending Date” means the earlier of (i) the first date upon which members of the E-House Group no longer collectively own at least twenty percent (20%) of the voting power of the then outstanding securities of Leju and (ii) the first date upon which E-House, collectively with the other members of the E-House Group, ceases to be the largest beneficial owner of the then outstanding voting securities of Leju (for purposes of this clause (ii), without considering holdings of institutional investors that have acquired Leju securities in the ordinary course of their business and not with a purpose nor with the effect of changing or influencing the control of Leju).

 

“Customized Services” has the meaning set forth in Section 4.9(a) of this Agreement.

 

“Direct Costs” has the meaning set forth in Section 4.10 of this Agreement.

 

“Dispute” has the meaning set forth in Section 6.1(a) of this Agreement.

 

“Dispute Resolution Commencement Date” has the meaning set forth in Section 6.1(a) of this Agreement.

 

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“Draft IPO Registration Statement” has the meaning set forth in the recitals to this Agreement.

 

“E-House” has the meaning set forth in the preamble to this Agreement.

 

“E-House’s Auditors” has the meaning set forth in Section 4.4 (a)(i) of this Agreement.

 

“E-House Business” means any business that is conducted by E-House and its subsidiaries and VIEs and described in its periodic filings with the SEC, other than the Leju Business.

 

“E-House Group” means E-House and its subsidiaries and VIEs, other than Leju and its subsidiaries and VIEs.

 

“E-House Indemnitees” means E-House and its subsidiaries and VIEs (excluding Leju and its subsidiaries and VIEs) and each of their respective directors, officers and employees.

 

“E-House Liabilities” means (without duplication) the following Liabilities:

 

(i)                                     all Liabilities, whether arising before, on or after the Live Filing Date, that relate to, arise or result from the operation of the E-House Business, other than Leju Liabilities; and

 

(ii)                                  Liabilities of E-House and its subsidiaries and VIEs under this Agreement or any of the Inter-Company Agreements.

 

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

 

“Governmental Authority” shall mean any national, state or local, foreign or international court, government, department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority.

 

“Indemnifying Party” means any party which may be obligated to provide indemnification to an Indemnitee pursuant to Section 5.2 or Section 5.3 hereof or any other section of this Agreement or any Inter-Company Agreement.

 

“Indemnitee” means any party which may be entitled to indemnification from an Indemnifying Party pursuant to Section 5 hereof or any other section of this Agreement or any Inter-Company Agreement.

 

“Indirect Costs” has the meaning set forth in Section 4.10 of this Agreement.

 

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“Information” means information, whether or not patentable or copyrightable, in written, oral, electronic or other tangible or intangible forms, stored in any medium, including studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other software, marketing plans, customer names, communications by or to attorneys (including attorney-client privileged  communications), memos and other materials prepared by attorneys or under their direction (including attorney work product), and other technical, financial, employee or business information or data.

 

“Inter-Company Agreements” means the Offshore Transitional Services Agreement, the Onshore Transitional Services Agreement and the Non-Competition Agreement.

 

“IPO” has the meaning set forth in the recitals to this Agreement.

 

“IPO Registration Statement” has the meaning set forth in the recitals to this Agreement.

 

“Leju” has the meaning set forth in the preamble to this Agreement.

 

“Leju’s Auditors” has the meaning set forth in Section 4.4(a)(i) of this Agreement.

 

“Leju Balance Sheet” means Leju’s unaudited consolidated balance sheet as of the end of the most recently completed fiscal quarter prior to the Live Filing Date.

 

“Leju Business” means the provision of real estate e-commerce, online advertising and listing services as currently conducted or contemplated to be conducted by the Leju Group anywhere in the world, as more completely described in the IPO Registration Statement.

 

“Leju Indemnitees” means Leju and its subsidiaries and VIEs and each of their respective directors, officers and employees.

 

“Leju Liabilities” means (without duplication) the following Liabilities:

 

(iii)                               all Liabilities reflected in the Leju Balance Sheet;

 

(iv)                              all Liabilities of E-House or its subsidiaries and VIEs that arise after the date of the Leju Balance Sheet that would be reflected in a Leju balance sheet as of the date of such Liabilities, if such balance sheet was prepared using the same principles and accounting policies under which the Leju Balance Sheet was prepared;

 

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(v)                                 all Liabilities that should have been reflected in the Leju Balance Sheet but are not reflected in the Leju Balance Sheet due to mistake or unintentional omission;

 

(vi)                              all Liabilities, whether arising before, on or after the Live Filing Date, that relate to, arise or result from: (1) the operation of the Leju Business or (2) the operation of any business conducted by Leju and its subsidiaries and VIEs at any time after the Live Filing Date; and

 

(vii)                           Liabilities of Leju and its subsidiaries and VIEs under this  Agreement or any of the Inter-Company Agreements.

 

“Liabilities” means all debts, liabilities, guarantees, assurances, commitments and obligations, whether fixed, contingent or absolute, asserted or unasserted, matured or unmatured, liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due, whenever or however arising (including, without limitation, whether arising out of any Contract or tort based on negligence or strict liability) and whether or not the same would be required by U.S. GAAP to be reflected in financial statements or disclosed in the notes thereto.

 

“Live Filing Date” has the meaning set forth in the recitals to this Agreement.

 

“Loss” and “Losses” mean any and all damages, losses, deficiencies, Liabilities, obligations, penalties, judgments, settlements, claims, payments, fines, interest, costs and expenses (including, without limitation, the costs and expenses of any and all Actions and demands, assessments, judgments, settlements and compromises relating thereto and the reasonable costs and expenses of attorneys’, accountants’, consultants’ and other professionals’ fees and expenses incurred in the investigation or defense thereof or the enforcement of rights hereunder), but excluding punitive damages (other than punitive damages awarded to any third party against an indemnified party).

 

“Non-Competition Agreement” has the meaning set forth in Section 2.1 of this Agreement.

 

“Offshore Transitional Services Agreement” has the meaning set forth in Section 2.1 of this Agreement.

 

“Onshore Transitional Services Agreement” has the meaning set forth in Section 2.1 of this Agreement.

 

“Ordinary Shares” means the shares of Leju, par value $0.001 per share (including shares represented by ADSs and held of record by the depositary bank for the ADSs).

 

“Party” or “Parties” has the meaning set forth in the preamble of this Agreement.

 

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“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof.

 

“Privileges” has the meaning set forth in Section 4.6(a) of this Agreement.

 

“Privileged Information” has the meaning set forth in Section 4.6(a) of this Agreement.

 

“Regular Services” has the meaning set forth in Section 4.9(a) of this Agreement.

 

“Rule 10A-3(b)(2)” means Rule 10A-3(b)(2) (or any successor rule to similar effect)  promulgated under the Exchange Act.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Third Party Claim” has the meaning set forth in Section 5.4(a) of this Agreement.

 

“Underwriters” has the meaning set forth in Section 3.1(a) of this Agreement.

 

“Underwriting Agreement” has the meaning set forth in Section 3.1(a) of this Agreement.

 

“U.S. GAAP” means generally accepted accounting principles in the United States as in effect from time to time.

 

“VIE” of any Person means any entity that controls, is controlled by, or is under common control with such Person and is deemed to be a variable interest entity consolidated with such Person for purposes of U.S. GAAP. As used herein, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through ownership of voting securities or other interests, by contract or otherwise.

 

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ARTICLE 2. DOCUMENTS AND
 ITEMS TO BE DELIVERED PRIOR TO F-1 FILING.

 

2.1                               Documents to be delivered by E-House.  E-House has delivered and its subsidiaries have delivered, as appropriate, or E-House will deliver, or will cause its subsidiaries to deliver, as appropriate, prior to the Live Filing Date, to Leju: (a) a duly executed Offshore Transitional Services Agreement, substantially in the form attached to the Draft IPO Registration Statement as an exhibit, with such changes, if any, to such form as may be agreed to by the Parties prior to such execution (the “Offshore Transitional Services Agreement”); (b) a duly executed Onshore Transitional Services Agreement, substantially in the form attached to the Draft IPO Registration Statement as an exhibit, with such changes, if any, to such form as may be agreed to by the Parties prior to such execution (the “Offshore Transitional Services Agreement”); (b) a duly executed Onshore Transitional Services Agreement, substantially in the form attached to the Draft IPO Registration Statement as an exhibit, with such changes, if any, to such form as may be agreed to by the Parties prior to such execution (the “Onshore Transitional Services Agreement”); (c) a duly executed Non-Competition Agreement, substantially in the form attached to the Draft IPO Registration Statement as an exhibit, with such changes, if any, to such form as may be agreed to by the Parties prior to such execution (the “Non-Competition Agreement”); and (d) such other agreements, documents or instruments as the Parties may agree are necessary or desirable in order to achieve the purposes hereof. For purposes of this Agreement, Leju and its subsidiaries and VIEs will not be considered subsidiaries and VIEs of E-House.

 

2.2                               Documents to be delivered by Leju.  Leju has delivered and its subsidiaries and VIEs have delivered, as appropriate, or Leju will deliver, or will cause its subsidiaries and VIEs to deliver, as appropriate, prior to the Live Filing Date, to E-House or its subsidiaries, as appropriate: (a) in each case where Leju or any of its subsidiaries or VIEs is a party to any agreement or instrument referred to in Section 2.1, a duly executed counterpart  of such agreement or instrument; and (b) such other agreements, documents or instruments as the Parties may agree are necessary or desirable in order to achieve the purposes hereof.

 

ARTICLE 3. THE IPO AND ACTIONS PENDING THE IPO.

 

3.1                               Transactions prior to the IPO.  Subject to the occurrence of the events described in this Article III, the Parties intend to consummate the IPO and to take, or cause to be taken, the actions specified in this Section 3.1.

 

(a)                                 Registration Statement. Leju has submitted or plans to submit on a confidential basis for review by the SEC the Draft IPO Registration Statement, and intends to submit such amendments or supplements thereto as may be requested by the SEC staff in connection with such review and agreed to by Leju, and subsequently to file with the SEC the IPO Registration Statement and make such amendments and supplements thereto as may be necessary or desirable in order to cause the same to comply with the Securities Act and other applicable law, to become and remain effective under the Securities Act, or as may be requested by the representatives of the underwriters for the IPO (the “Underwriters”), including, without limitation, filing such amendments or supplements to the IPO Registration Statement as may be required by the underwriting agreement to be entered into among Leju and the Underwriters (the “Underwriting Agreement”) following the effectiveness of the IPO Registration Statement under the Securities Act.

 

(b)                                 Underwriting Agreement. Following the effectiveness of the IPO Registration Statement, Leju will enter into the Underwriting Agreement, which shall in form and substance be satisfactory to Leju, as determined by its board of directors or authorized designees, as appropriate, and Leju shall comply with its obligations thereunder.

 

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(c)                                  NASDAQ Global Market or NYSE Listing. Leju plans to prepare, file and have approved an application for listing on the NASDAQ Global Market or the New York Stock Exchange of the American depositary shares, representing Ordinary Shares, to be offered and sold in the IPO (the “ADSs”).

 

3.2                               Cooperation.  E-House and Leju shall each consult with, and cooperate in all respects with, the other in connection with the marketing, including any roadshow presentations, and pricing of the ADSs and shall take any and all actions as may be reasonably necessary or desirable to consummate the IPO as contemplated by the IPO Registration Statement and the Underwriting Agreement.

 

ARTICLE 4. COVENANTS AND OTHER MATTERS.

 

4.1                               Other Agreements and Instruments.  Each of the Parties agrees to execute or cause to be executed by the appropriate parties and deliver, as appropriate, such other agreements, instruments and other documents as may be necessary or desirable in order to effect the purposes of this Agreement and the Inter-Company Agreements.

 

4.2                               Further Instruments.  (a)  To the extent it has not been done prior to the date hereof, E-House will execute and deliver, and will cause its subsidiaries to execute and deliver, to Leju and/or its subsidiaries and VIEs, as the case may be, such instruments of transfer, conveyance, assignment, substitution and confirmation, and will take such action as may be reasonably necessary or desirable in order to transfer, convey and assign to Leju and/or its subsidiaries and VIEs and confirm Leju’s and/or its subsidiaries’ and VIEs’ title to all assets, rights, interests and other things of value used in or necessary for the conduct and operation of the Leju Business on or prior to the Live Filing Date or to be transferred or licensed to Leju and/or its subsidiaries and VIEs pursuant to this Agreement or any document referred to herein, to put Leju and its subsidiaries and VIEs in actual possession and operating control thereof and to permit Leju and its subsidiaries and VIEs to exercise all rights with respect thereto (including, without limitation, rights under Contracts and other arrangements as to which the consent of any third party to the transfer thereof have not previously been obtained) relating to the Leju Business; provided, however, that in the absence of such execution and delivery by E-House and/or its subsidiaries, such execution and delivery shall be deemed for all purposes to have occurred subject only to Leju’s obligation to pay to E-House or its applicable subsidiary an amount equal to the book value thereof to the extent not previously so paid.

 

(b)                                 E-House will execute and deliver, and will cause its appropriate subsidiaries to execute and deliver, to Leju and/or its subsidiaries and VIEs, as the case may be, all instruments, assumptions, novations, undertakings, substitutions or other documents and take such other action as may be reasonably necessary or desirable in order to have E-House and/or its subsidiaries, as the case may be, fully and unconditionally assume and discharge the E-House Liabilities; provided, however, that in the absence of such execution and delivery by E-House and/or such appropriate subsidiaries, such execution and delivery shall be deemed for all purposes to have occurred.

 

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(c)                                  Leju will, and will cause its appropriate subsidiaries and VIEs to, execute and deliver to E-House and its subsidiaries all instruments, assumptions, novations, undertakings, substitutions or other documents and take such other action as may be reasonably necessary or desirable in order to have Leju and/or its subsidiaries and VIEs, as the case may be, fully and unconditionally assume and discharge the Leju Liabilities; provided, however, that in the absence of such execution and delivery by Leju and/or such  appropriate subsidiaries and VIEs, such execution and delivery shall be deemed for all purposes to have occurred.

 

(d)                                 Except as hereinabove provided, neither E-House, Leju, nor their respective subsidiaries and VIEs shall be obligated, in connection with the foregoing matters set forth in this Section, to expend money other than reasonable out-of-pocket expenses, attorneys’ fees and recording or similar fees, unless reimbursed by the other relevant Party. Furthermore, each Party, at the request of the other Party hereto, shall execute and deliver such other instruments and do and perform such other acts and things as may be necessary or desirable for effecting completely the consummation of the transactions contemplated hereby.

 

4.3                               Agreement for Exchange of Information.  (a)  Generally. Each of the Parties agrees to provide, or cause to be provided, to the other Party, at any time, promptly after written request therefor, all reports and other Information regularly provided by one Party to the other Party prior to the Live Filing Date and any Information in the possession or under the control of such Party to the extent reasonably requested by the requesting Party (i) to comply with reporting, disclosure, filing or other requirements imposed on the requesting Party (including under applicable securities laws) by a Governmental Authority having jurisdiction over the requesting Party, (ii) for use in any other judicial, regulatory, administrative or other proceeding or in order to satisfy audit, accounting, claims, regulatory, litigation or other similar requirements, (iii) to comply with its obligations under this Agreement or any Inter-Company Agreement or (iv) at any time after the Live Filing Date to the extent such Information and cooperation are necessary to comply with such reporting, filing and disclosure obligations, for the preparation of financial statements or completing an audit, and as reasonably necessary to conduct the ongoing businesses of E-House or Leju, as the case may be. Each of the Parties agrees to make their respective personnel available to discuss the Information exchanged pursuant to this Section 4.3. In the event that any Party determines that any such provision of Information or other actions contemplated by this Section 4.3 could be commercially detrimental, violate any law or agreement, or waive any attorney-client privilege, the Parties shall take all reasonable measures to permit the compliance with such obligations in a manner that avoids any such harm or consequence

 

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(b)                                 Internal Accounting Controls; Financial Information. After the Live Filing Date, (i) each Party shall maintain in effect at its own cost and expense adequate systems and controls for its business to the extent necessary to enable the other Party to satisfy its reporting, tax return, accounting, audit and other obligations, and (ii) each Party shall provide, or cause to be provided, to the other Party and its subsidiaries and VIEs in such form as such requesting Party shall request, at no charge to the requesting Party, all financial and other data and information as the requesting Party determines necessary or advisable in  order to prepare its financial statements and reports or filings with any Governmental Authority.

 

(c)                                  Ownership of Information. Any Information owned by a Party that is provided to a requesting Party pursuant to this Section 4.3 shall be deemed to remain the property of the providing Party. Unless specifically set forth herein, nothing contained in this Agreement shall be construed as granting or conferring rights of license or otherwise in any such Information.

 

(d)                                 Record Retention. To facilitate the possible exchange of Information pursuant to this Section 4.3 and other provisions of this Agreement, each Party agrees to use its reasonable best efforts for a period of ten (10) years to retain all Information in its respective possession or control substantially in accordance with its respective record retention policies and/or practices as in effect on the Live Filing Date, and for such longer period as may be required by any Governmental Authority, any litigation matter, any applicable law or any Inter-Company Agreement. However, at any time after such ten (10)-year period each Party may amend its respective record retention policies at such Party’s discretion; provided, however, that the amending Party must give thirty (30) days prior written notice of such change in the policy to the other Party. No Party will destroy, or permit any of its subsidiaries or VIEs to destroy, any Information that exists on the Live Filing Date (other than Information that is permitted to be destroyed under the current respective record retention policies of each Party) and that falls under the categories listed in Section 4.3(a), without first notifying the other Party of the proposed destruction and giving the other Party the opportunity to take possession or make copies of such Information prior to such destruction.

 

(e)                                  Limitation of Liability. Each Party will use its reasonable best efforts to ensure that Information provided to the other Party hereunder is accurate and complete; provided, however, that no Party shall have any liability to the other Party if any Information exchanged or provided pursuant to this Section 4.3 is found to be inaccurate, in the absence of gross negligence, bad faith, or willful misconduct by the Party providing the Information. No Party shall have any liability to the other Party if any Information is destroyed or lost after the relevant Party has complied with the provisions of Section 4.3(d).

 

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(f)                                   Other Agreements Providing For Exchange of Information. The rights and obligations granted under this Section 4.3 are subject to any specific limitations, qualifications or additional provisions on the sharing, exchange or confidential treatment of Information set forth in this Agreement and any Inter-Company Agreement.

 

(g)                                  Production of Witnesses; Records; Cooperation. For a period of five (5) years after the Control Ending Date, and except in the case of a legal or other proceeding by one Party against the other Party, each Party shall use its reasonable best efforts to make available to the other Party, upon written  request, the former, current and future directors, officers, employees, other personnel and agents of such Party as witnesses and any books, records or other documents within its control or which it otherwise has the ability to make available, to the extent that any such individual (giving consideration to business demands of such directors, officers, employees, other personnel and agents) or books, records or other documents may reasonably be required in connection with any legal, administrative or other proceeding in which the requesting Party may from time to time be involved, regardless of whether such legal, administrative or other proceeding is a matter with respect to which indemnification may be sought hereunder. The requesting Party shall bear all costs and expenses in connection therewith.

 

4.4                               Auditors and Audits; Financial Statements; Accounting Matters.  Each Party agrees that:

 

(a)                                 Selection of Auditors.

 

(i)                                     Until the first E-House fiscal year end occurring after the Control Ending Date, Leju shall use its reasonable best efforts to select the independent registered public accounting firm used by E-House (“E-House’s Auditors” and, for the avoidance of doubt, should E-House at any time change the independent registered public accounting firm serving as its auditors, “E-House’s Auditors” shall thereafter mean the new firm serving as E-House’s auditors) to serve as its auditors (“Leju’s Auditors”) for purposes of providing an opinion on its consolidated financial statements; provided, however, that Leju’s Auditors may be different from E-House’s Auditors if necessary to comply with applicable laws regarding auditor independence and qualifications (provided, however, that Leju shall not take any actions, and shall use its reasonable best efforts to cause its directors, officers and employees not to take any actions, that could reasonably be expected to require Leju to engage auditors other than E-House’s Auditors). After the Live Filing Date, the foregoing shall not be construed so as to unlawfully limit any responsibility of the audit committee of Leju’s board of directors, pursuant to SEC Rule 10A-3(b)(2) and rules of the NASDAQ Global Market or the New York Stock Exchange, as applicable, to appoint, compensate, retain and oversee the work of the registered public accounting firm Leju engages.

 

(ii)                                  Until the first E-House fiscal year end occurring after the Control Ending Date, Leju shall provide to E-House as much prior notice as reasonably practical of any change in Leju’s Auditors for purposes of providing an opinion on its consolidated financial statements.

 

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(b)                                 Date of Auditors’ Opinion and Quarterly Reviews. Until the first E-House fiscal year end occurring after the Control Ending Date, and thereafter  to the extent necessary for the purpose of preparing financial statements or completing a financial statement audit, Leju shall use its reasonable best efforts to enable Leju’s Auditors to complete their audit such that they will date their opinion on Leju’s audited annual financial statements on the same date that E-House’s Auditors date their opinion on E-House’s audited annual financial statements, and to enable E-House to meet its timetable for the printing, filing and public dissemination of E-House’s annual financial statements. Until the first E-House fiscal year end occurring after the Control Ending Date, and thereafter to the extent necessary for the purpose of preparing financial statements or completing a financial statement audit, Leju shall use its reasonable best efforts to enable Leju’s Auditors to complete their annual audit and quarterly review procedures such that they will provide clearance on such Party’s annual and quarterly financial statements on the same date that E-House’s Auditors provide clearance on E-House’s annual and quarterly financial statements.

 

(c)                                  Annual and Quarterly Financial Statements. Until the Control Ending Date, Leju shall not change its fiscal year and, until the first E-House fiscal year end occurring after the Control Ending Date, and thereafter to the extent necessary for the purpose of preparing financial statements or completing a financial statement audit, shall provide to E-House on a timely basis all Information that E-House reasonably requires to meet its schedule for the preparation, printing, filing, and public dissemination of E-House’s annual and quarterly financial statements. Without limiting the generality of the foregoing, Leju will provide all required financial Information with respect to Leju and its subsidiaries and VIEs to Leju’s Auditors in a sufficient and reasonable time and in sufficient detail to permit Leju’s Auditors to take all steps and perform all procedures necessary to provide sufficient assistance to E-House’s Auditors with respect to financial Information to be included or contained in E-House’s annual and quarterly financial statements. Similarly, E-House shall provide to Leju on a timely basis all financial Information that Leju reasonably requires to meet its schedule for the preparation, printing, filing, and public dissemination of Leju’s annual and quarterly financial statements. Without limiting the generality of the foregoing, E-House will provide all required financial Information with respect to E-House and its subsidiaries and VIEs to E-House’s Auditors in a sufficient and reasonable time and in sufficient detail to permit E-House’s Auditors to take all steps and perform all procedures necessary to provide sufficient assistance to Leju’s Auditors with respect to Information to be included or contained in Leju’s annual and quarterly financial statements.

 

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(d)                                 Certifications and Attestations.

 

(i)                                     Until the first E-House fiscal year end occurring after the Control Ending Date, and thereafter to the extent necessary for the timely filing by E-House of annual and quarterly reports under the Exchange Act or in connection with any investigations of prior periods,  Leju shall cause its principal executive officer and principal financial officer to provide to E-House on a timely basis and as reasonably requested by E-House (A) any certificates requested as support for the certifications and attestations required by Sections 302, 906 and 404 of the Sarbanes-Oxley Act of 2002 to be filed with such annual and quarterly reports, (B) any certificates or other written Information which such principal executive officer or principal financial officer received as support for the certificates provided to E-House and (C) a reasonable opportunity to discuss with such principal financial officer and other appropriate officers and employees of Leju any issues reasonably related to the foregoing.

 

(ii)                                  To the extent necessary for the timely filing by Leju of annual and quarterly reports under the Exchange Act or in connection with any investigations of prior periods, E-House shall cause its appropriate officers and employees to provide to Leju on a timely basis and as reasonably requested by such Party (A) any certificates requested as support for the certifications and attestations required by Sections 302, 906 and 404 of the Sarbanes-Oxley Act of 2002 to be filed with such annual and quarterly reports, (B) any certificates or other Information which such appropriate officers and employees received as support for the certificates provided to Leju and (C) a reasonable opportunity to discuss with such appropriate officers and employees any issues reasonably related to the foregoing.

 

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(e)                                  Compliance With Laws, Policies and Regulations. Until the Control Ending Date, Leju shall comply with all financial accounting and reporting rules, policies and directives of E-House, to the extent such rules, policies and directives have been previously communicated to Leju, and fulfill all timing and reporting requirements, applicable to E-House subsidiaries and VIEs that are consolidated with E-House for financial statement purposes. Without limiting the foregoing, Leju shall comply with all financial accounting and reporting rules and policies, and fulfill all timing and reporting requirements, under applicable federal securities laws and the rules of the NASDAQ Global Market or the New York Stock Exchange, as applicable. Leju shall not be deemed to be in breach of its obligations set forth in this provision to the extent that it is unable to comply with such obligations as a result of the actions or inactions of E-House.

 

(f)                                   Identity of Personnel Performing the Annual Audit and Quarterly Reviews. Until the Control Ending Date, and thereafter to the extent such information and cooperation is necessary for the preparation of financial statements or completing a financial statements audit, Leju shall authorize Leju’s Auditors to make available to E-House’s Auditors both the personnel who performed or will perform the annual audits and quarterly reviews of Leju and work papers related to the annual audits and quarterly reviews of Leju, in all cases within a reasonable time prior to Leju’s Auditors’ opinion date, so  that E-House’s Auditors are able to perform the procedures they consider necessary to take responsibility for the work of Leju’s Auditors as it relates to E-House’s Auditors’ report on E-House’s financial statements, all within sufficient time to enable E-House to meet its timetable for the printing, filing and public dissemination of E-House’s annual and quarterly financial statements. Similarly, E-House shall authorize E-House’s Auditors to make available to Leju’s Auditors both the personnel who performed or will perform the annual audits and quarterly reviews of E-House and work papers related to the annual audits and quarterly reviews of E-House, in all cases within a reasonable time prior to E-House’s Auditors’ opinion date, so that Leju’s Auditors are able to perform the procedures they consider necessary to take responsibility for the work of E-House’s Auditors as it relates to Leju’s Auditors’ report on Leju’s financial statements, all within sufficient time to enable Leju to meet its timetable for the printing, filing and public dissemination of Leju’s annual and quarterly financial statements.

 

(g)                                  Access to Books and Records. Until the Control Ending Date, and thereafter to the extent such information and cooperation is necessary for the preparation of financial statements or completing a financial statements audit, all governmental audits are complete and the applicable statute of limitations for tax matters has expired, Leju shall provide E-House’s internal auditors, counsel and other designated representatives of E-House access during normal business hours to (i) the premises of Leju and its subsidiaries and VIEs and all Information (and duplicating rights) within the knowledge, possession or control of Leju and its subsidiaries and VIEs and (ii) the officers and employees of Leju and its subsidiaries and VIEs, so that E-House may conduct reasonable audits relating to the financial statements provided by Leju pursuant hereto as well as to the internal accounting controls and operations of Leju. Similarly, E-House shall provide Leju’s internal auditors, counsel and other designated representatives of Leju access during normal business hours to (x) the premises of E-House and its subsidiaries and VIEs and all Information (and duplicating rights with respect thereto) within the knowledge, possession or control of E-House and its subsidiaries and VIEs and (y) the officers and employees of E-House and its subsidiaries and VIEs, so that Leju may conduct reasonable audits relating to the financial statements provided by E-House pursuant hereto as well as to the internal accounting controls and operations of E-House and its subsidiaries and VIEs.

 

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(h)                                 Notice of Change in Accounting Principles. Until the Control Ending Date, and thereafter if a change in accounting principles by a Party would affect the historical financial statements of the other Party, no such Party shall make or adopt any significant changes in its accounting estimates or accounting principles from those in effect on the Live Filing Date without first consulting with the other Party, and if requested by the other Party, such other Party’s independent registered public accounting firm with respect thereto. E-House shall give Leju as much prior notice as reasonably practical of any  proposed determination of, or any significant changes in, its accounting estimates or accounting principles from those in effect on the Live Filing Date. E-House will consult with Leju and, if requested by Leju, Leju’s independent registered public accounting firm with respect thereto. Leju shall give E-House as much prior notice as reasonably practical of any proposed determination of, or any significant changes in, its accounting estimates or accounting principles from those in effect on the Live Filing Date. Leju will consult with E-House and, if requested by E-House, E-House’s independent registered public accounting firm with respect thereto.

 

(i)                                     Conflict With Third-Party Agreements. Nothing in Section 4.3 or this Section 4.4 shall require a Party to violate any agreement with any third party regarding the confidentiality of confidential and proprietary Information relating to that third party or its business; provided, however, that in the event that a Party is required under Section 4.3 or this Section 4.4 to disclose any such Information, such Party shall use its reasonable best efforts to seek to obtain such third party’s consent to the disclosure of such Information.

 

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4.5                               Confidentiality.  (a)  Each of the Parties shall hold and shall cause each of their respective subsidiaries and VIEs to hold, and shall each cause their respective officers, employees, agents, consultants and advisors and those of their respective subsidiaries and VIEs to hold, in strict confidence and not to disclose or release without the prior written consent of the other Party, any and all Confidential Information concerning such other Party and its respective subsidiaries and VIEs; provided, that each of the Parties may disclose, or may permit disclosure of, Confidential Information (i) to their respective subsidiaries and VIEs, auditors, attorneys, financial advisors, bankers and other appropriate consultants and advisors who have a need to know such information and, in each case, are informed of their obligation to hold such information confidential to the same extent as is applicable to the Parties hereto and in respect of whose failure to comply with such obligations, Leju or E-House, as the case may be, will be responsible, (ii) if the Parties or any of their respective subsidiaries or VIEs are compelled to disclose any such Confidential Information by judicial or administrative process or (iii) if the Parties reasonably determine in good faith that such disclosure is required by other requirements of law. Notwithstanding the foregoing, in the event that any demand or request for disclosure of Confidential Information is made in connection with any judicial or administrative process, or a Party determines in good faith that disclosure is otherwise required by law, such Party shall promptly notify the other Party of the existence of such request, demand, or conclusion, and shall provide such other Party a reasonable opportunity to seek an appropriate protective order or other remedy, which the notifying Party will cooperate in obtaining. In the event that an appropriate protective order or other remedy is not obtained, the Party whose Confidential Information is required to be disclosed shall or shall cause the notifying Party to furnish, or cause to be furnished, only that portion of the Confidential  Information that is required to be disclosed and shall use its reasonable best efforts to obtain reasonable assurances that confidential treatment will be accorded to such Information.

 

(b)                                 As used in this Section 4.5:

 

(i)                                     “Confidential Information” shall mean Confidential Business Information and Confidential Technical Information concerning one Party which, prior to, on or following the Live Filing Date, has been disclosed by such Party or its subsidiaries or VIEs, that (1) is in written, recorded, graphical or other tangible form and is marked “Proprietary,” “Confidential” or “Trade Secret,” or where it is evident from the nature and content of such Information that the disclosing Party considers it to be confidential, (2) is in oral form and identified by the disclosing Party as “Proprietary”, “Confidential” or “Trade Secret” at the time of oral disclosure, including pursuant to the access provisions of Section 4.3 or Section 4.4 hereof or any other provision of this Agreement or where it is evident from the nature and content of such Information that the disclosing Party considers it to be confidential, or (3) in the case of such Information disclosed on or prior to the date hereof, either such Information is identified by the owning Party to the other relevant Party as Confidential Business Information or Confidential Technical Information, orally or in writing on or prior to the Live Filing Date, or it is evident from the nature and content of such Information that the disclosing Party considers it to be confidential, and includes any modifications or derivatives prepared by the receiving Party that contain or are based upon any Confidential Information obtained from the disclosing Party, including any analysis, reports, or summaries of the Confidential Information. Confidential Information may also include Information disclosed to a disclosing Party by third parties. Confidential Information shall not, however, include any information which (A) was publicly known and made generally available in the public domain prior to the time of disclosure by the disclosing Party; (B) becomes publicly known and made generally available after disclosure by the disclosing Party to the receiving Party through no action or inaction of the receiving Party; (C) is obtained by the receiving Party from a third party without a breach of such third party’s obligations of confidentiality; or (D) is on or after the Live Filing Date independently developed by the receiving Party without use of or reference to the disclosing Party’s Confidential Information.

 

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(ii)                                  “Confidential Technical Information” shall mean all proprietary scientific, engineering, mathematical or design information, data and material of the disclosing Party including, without limitation, (a) specifications, ideas, concepts, models, and strategies for products or services, (b) quality assurance policies, procedures and  specifications, (c) source code and object code, (d) training materials and information, and (e) all other know-how, methodology, processes, procedures, techniques and trade secrets related to product or service design, development, manufacture, implementation, use, support and maintenance.

 

(iii)                               “Confidential Business Information” shall mean all proprietary information, data or material of the disclosing Party other than Confidential Technical Information, including, but not limited to (a) proprietary earnings reports and forecasts, (b) proprietary macro-economic reports and forecasts, (c) proprietary business plans, (d) proprietary general market evaluations and surveys, (e) proprietary financing and credit-related information, and (f) customer information.

 

(c)                                  Nothing in this Agreement shall restrict (i) the disclosing Party from using, disclosing, or disseminating its own Confidential Information in any way, or (ii) reassignment of the receiving Party’s employees. Moreover, nothing in the Agreement supersedes any restriction imposed by third parties on their Confidential Information, and there is no obligation on the disclosing Party to conform third party agreements to the terms of this Agreement except as expressly set forth therein.

 

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(d)                                 Notwithstanding anything to the contrary set forth herein, (i) a Party and its subsidiaries and VIEs shall be deemed to have satisfied their obligations hereunder with respect to Confidential Information if they exercise the same degree of care (but no less than a reasonable degree of care) as they take to preserve confidentiality for their own similar Information and (ii) confidentiality obligations provided for in any agreement between a Party or any of its subsidiaries or VIEs and any employee of such Party or any of its subsidiaries or VIEs shall remain in full force and effect.

 

(e)                                  Confidential Information of a Party and its subsidiaries and VIEs in the possession of and used by the other Party as of the Live Filing Date may continue to be used by such Party in possession of the Confidential Information in and only in the operation of the E-House Business, in the case of E-House and its subsidiaries and VIEs, or the Leju Business, in the case of Leju and its subsidiaries and VIEs, and may be used only so long as the Confidential Information is maintained in confidence and not disclosed in violation of Section 4.5(a). Such continued right to use Confidential Information may not be transferred, including by merger, consolidation, reorganization, operation of law, or otherwise, to any third party unless such third party (A) purchases all or substantially all of the business or business line and assets in one transaction or in a series of related transactions for which or in which the relevant Confidential Information is used or employed and (B) expressly agrees in writing to be bound by the provisions of this Section 4.5. In the event that such right to use is transferred in accordance with the preceding sentence, the transferring Party shall not disclose the source of  the relevant Confidential Information.

 

4.6                               Privileged Matters.  (a)  The Parties agree that their respective rights and obligations to maintain, preserve, assert or waive any or all privileges belonging to each such Party or its subsidiaries or VIEs including but not limited to the attorney-client and work product privileges (collectively, “Privileges”), shall be governed by the provisions of this Section 4.6. With respect to Privileged Information (as defined below) of E-House, E-House shall have sole authority in perpetuity to determine whether to assert or waive any or all Privileges, and Leju shall take no action (nor permit any of its subsidiaries or VIEs to take action) without the prior written consent of E-House that could result in any waiver of any Privilege that could be asserted by E-House or any of its subsidiaries or VIEs under applicable law and this Agreement. With respect to Privileged Information of Leju, Leju shall have sole authority in perpetuity to determine whether to assert or waive any or all Privileges, and E-House shall take no action (nor permit any of its subsidiaries or VIEs to take action) without the prior written consent of Leju that could result in any waiver of any Privilege that could be asserted by Leju or any of its subsidiaries or VIEs under applicable law and this Agreement.

 

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(b)                                 The rights and obligations created by this Section 4.6 shall apply to all Information as to which the Parties or their respective subsidiaries or VIEs would be entitled to assert or has asserted a Privilege (“Privileged Information”). Privileged Information of E-House includes but is not limited to (i) any and all Information regarding the business of E-House and its subsidiaries and VIEs (other than Information regarding the Leju Business), whether or not it is in the possession of Leju or any of its subsidiaries and VIEs; (ii) all communications subject to a Privilege between counsel for E-House (including in-house counsel) and any individual who, at the time of the communication, was an employee of E-House, regardless of whether such employee is or becomes an employee of Leju or any of its subsidiaries and VIEs and (iii) all Information generated, received or arising after the Live Filing Date that refers or relates to Privileged Information of E-House generated, received or arising prior to the Live Filing Date. Privileged Information of Leju includes but is not limited to (x) any and all Information regarding the Leju Business, whether or not it is in the possession of E-House or any of its subsidiaries and VIEs; (y) all communications subject to a Privilege occurring after the Live Filing Date between counsel for Leju (including in-house counsel and former in-house counsel who are or were employees of E-House) and any person who, at the time of the communication, was an employee of Leju, regardless of whether such employee was, is or becomes an employee of E-House or any of its subsidiaries or VIEs and (z) all Information generated, received or arising after the Live Filing Date that refers or relates to Privileged Information of Leju generated, received or arising prior to the Live Filing Date.

 

(c)                                  Upon receipt by a Party or its subsidiaries or VIEs of any subpoena,  discovery or other request from any third party that actually or arguably calls for the production or disclosure of Privileged Information of the other Party or its subsidiaries or VIEs, or if a Party or any of its subsidiaries or VIEs obtains knowledge that any of its current or former employees has received any subpoena, discovery or other request from any third party that actually or arguably calls for the production or disclosure of Privileged Information of the other Party or its subsidiaries or VIEs, such Party shall promptly notify that other Party of the existence of the request and shall provide that other Party a reasonable opportunity to review the Information and to assert any rights such other Party may have under this Section 4.6 or otherwise to prevent the production or disclosure of Privileged Information. E-House or its subsidiaries or VIEs, or Leju or its subsidiaries and VIEs, as the case may be, will not produce or disclose to any third party any of the other Party’s Privileged Information under this Section 4.6 unless (a) such other Party has provided its express written consent to such production or disclosure or (b) a court of competent jurisdiction has entered an order not subject to interlocutory appeal or review finding that the Information is not entitled to protection from disclosure under any applicable privilege, doctrine or rule.

 

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(d)                                 E-House’s transfer of books and records pertaining to the Leju Business and other Information pertaining to Leju, if any, E-House’s agreement to permit Leju to obtain Information existing prior to the Live Filing Date, Leju’s transfer of books and records and other Information pertaining to E-House, if any, and Leju’s agreement to permit E-House to obtain Information existing prior to the Live Filing Date are made in reliance on E-House’s and Leju’s respective agreements, as set forth in Section 4.5 and this Section 4.6, to maintain the confidentiality of such Information and to take the steps provided herein for the preservation of all Privileges that may belong to or be asserted by E-House, or Leju, as the case may be. The access to Information, witnesses and individuals being granted pursuant to Section 4.3 and Section 4.4 and the disclosure to one Party of Privileged Information relating to the other Party’s businesses pursuant to this Agreement shall not be asserted by E-House or Leju to constitute, or otherwise be deemed, a waiver of any Privilege that has been or may be asserted under this Section 4.6 or otherwise. Nothing in this Agreement shall operate to reduce, minimize or condition the rights granted to, or the obligations imposed upon, E-House and Leju by this Section 4.6.

 

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4.7                               Future Litigation and Other Proceedings.  In the event that Leju (or any of its subsidiaries or VIEs or any of its or their respective officers or directors) or E-House (or any of its subsidiaries or VIEs or any of its or their respective officers or directors) at any time after the date hereof initiates or becomes subject to any litigation or other proceedings before any Governmental Authority or arbitration panel with respect to which the Parties have no prior agreements (as to indemnification or otherwise), the Party (and its subsidiaries and VIEs and its and their respective officers and directors) that has not initiated and is not subject to such litigation or other proceedings shall comply, at the litigant Party’s expense, with any reasonable requests by the litigant Party for assistance in connection with such litigation or other proceedings (including by way of provision of Information and making available of employees as witnesses). In the event that Leju (or any of its subsidiaries or VIEs or any of its or their respective officers or directors) and E-House (or any of its subsidiaries or VIEs or any of its or their respective officers or directors), or any combination thereof, at any time after the date hereof initiate or become subject to any litigation or other proceedings before any Governmental Authority or arbitration panel with respect to which the litigant Parties have no prior agreements (as to indemnification or otherwise), each litigant Party (and its officers and directors) shall, at their own expense, coordinate their strategies and actions with respect to such litigation or other proceedings to the extent such coordination would not be detrimental to their respective interests and shall comply, at the expense of the requesting Party, with any reasonable requests of such Party for assistance in connection therewith (including by way of provision of information and making available of employees as witnesses).

 

4.8                               Mail and other Communications.  Each of E-House and Leju may receive mail, facsimiles, packages and other communications properly belonging to the other. Accordingly, each Party authorizes each of the other Party to receive and open all mail, telegrams, packages and other communications received by it and not unambiguously intended for the other Party or any of the other Party’ officers or directors, and to retain the same to the extent that they relate to the business of the receiving Party or, to the extent that they do not relate to the business of the receiving Party, the receiving Party shall promptly deliver such mail, telegrams, packages or other communications, including, without limitation, notices of any liens or encumbrances on any asset transferred to Leju or its subsidiaries or VIEs in connection with the separation from E-House, if any, (or, in case the same relate to both businesses, copies thereof) to the other Party as provided for in Section 7.6 hereof. The provisions of this Section 4.8 are not intended to, and shall not, be deemed to constitute (a) an authorization by either E-House or Leju to permit the other to accept service of process on its behalf and no Party is or shall be deemed to be the agent of the other Party for service of process purposes or (b) a waiver of any Privilege with respect to Privileged Information contained in such mail, telegrams, packages or other communications.

 

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4.9                               Certain Services to be Provided by E-House Research and Training Institute.

 

(a)                                 Services.  Until the Control Ending Date, E-House Research and Training Institute, or another member of the E-House Group performing similar functions, shall provide Leju and its subsidiaries and VIEs with (i) regular macro-economic and real estate industry research and information services, including without limitation monthly general research reports in  respect of China’s real estate industry, monthly special research reports in respect of certain specific aspects of China’s real estate industry, and regular training seminars (the “Regular Services”), and (ii) customized real estate industry research and information services from time to time based on the specific requests of Leju or any of its subsidiaries and VIEs (the “Customized Services”).

 

(b)                                 Service Fee.  The Regular Services and the Customized Services shall be provided free of charge.

 

(c)                                  Intellectual Property Rights.  E-House Research and Training Institute reserves all intellectual property rights in respect of the services it provides under this Section 4.9. Leju and its subsidiaries and affiliates may use the work products produced by E-House Research and Training Institute for the operation of their business, including without limitation the operation of Leju’s proprietary real estate information database and analysis system, and may, for the purpose of the operation of their business, authorize third parties to use such work products.

 

4.10                        Other Inter-Company Services Agreements.  To the extent not covered under the Inter-Company Agreements, E-House and its subsidiaries and VIEs, on the one hand, and Leju and its subsidiaries and VIEs, on the other, may enter into interim services agreements from time to time covering the provision of various interim services, if any, including financial, accounting, legal, and other services by E-House (and its subsidiaries and VIEs) to Leju (and its subsidiaries and VIEs) or, in certain circumstances, vice versa. Such services will generally be provided for a fee equal to the actual Direct Costs and Indirect Costs of providing such services plus an additional amount as agreed to by the Parties, subject to other consideration’s being agreed to by the Parties. “Direct Costs” shall include compensation and travel expenses attributable to employees, temporary workers, and contractors directly engaged in performing the services as well as materials and supplies consumed in performing the services. “Indirect Costs” shall include occupancy, IT supervision and other overhead burden of the department incurring the direct costs of providing the service. Payment for any such services will be due within thirty (30) days after E-House renders an invoice for such services.

 

4.11                        Payment of Expenses.  Except as otherwise provided in this Agreement, the Inter-Company Agreements or any other agreement between the Parties relating to the IPO, (i) all costs and expenses of the Parties in connection with the IPO (including costs associated with drafting this Agreement, the Inter-Company Agreements and the documents relating to the formation of Leju and its subsidiaries and VIEs) shall be paid by Leju and (ii) all costs and expenses of the Parties in connection with any matter not relating to the IPO shall be paid by the Party which incurs such cost or expense. Notwithstanding the foregoing, Leju and E-House shall each be responsible for their own internal fees, costs and expenses (e.g., salaries of personnel) incurred in connection with the IPO.

 

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ARTICLE 5. MUTUAL RELEASES; INDEMNIFICATION.

 

5.1                               Release of Claims.

 

(a)                                 Leju Release. Except as provided in Section 5.1(c), Leju, for itself and as agent for each of its subsidiaries and VIEs, does hereby assume, and does hereby remise, release and forever discharge the E-House Indemnitees from, any and all Liabilities whatsoever, whether at law or in equity (including any right of contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any past acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the Live Filing Date, including in connection with the transactions and all other activities to implement the IPO.

 

(b)                                 E-House Release. Except as provided in Section 5.1(c), E-House, for itself and as agent for each of its subsidiaries and VIEs, does hereby remise, release and forever discharge the Leju Indemnitees from any and all Liabilities whatsoever, whether at law or in equity (including any right of contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any past acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the Live Filing Date, including in connection with the transactions and all other activities to implement the IPO.

 

(c)                                  No Impairment. Nothing contained in Section 5.1(a) or Section 5.1(b) shall limit or otherwise affect any Party’s rights or obligations pursuant to or contemplated by this Agreement or any Inter-Company Agreement, in each case in accordance with its terms, including, without limitation, any obligations relating to indemnification, including indemnification pursuant to Section 5.2 and Section 5.3 of this Agreement.

 

5.2                               Indemnification by Leju.Except as otherwise provided in this Agreement, Leju shall, for itself and as agent for each of its subsidiaries and VIEs, indemnify, defend (or, where applicable, pay the defense costs for) and hold harmless the E-House Indemnitees from and against, and shall reimburse the E-House Indemnitees with respect to, any and all Losses that any third party seeks to impose upon the E-House Indemnitees, or which are imposed upon the E-House Indemnitees, and that relate to, arise or result from, whether prior to, on or following the Live Filing Date, any of the following items (without duplication):

 

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(a)                                 any Leju Liability;

 

(b)                                 any breach by Leju or any of its subsidiaries and VIEs of this Agreement or any of the Inter-Company Agreements; and

 

(c)                                  any Liabilities relating to, arising out of or resulting from any untrue  statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, with respect to all information (i) contained in the IPO Registration Statement, any issuer free writing prospectus or any preliminary, final or supplemental prospectus forming a part of the IPO Registration Statement (other than information provided in writing by E-House or any of its subsidiaries or VIEs to Leju specifically for inclusion in the IPO Registration Statement, any issuer free writing prospectus or any preliminary, final or supplemental prospectus forming a part of the IPO Registration Statement), (ii) contained in any public filings made by Leju with the SEC following the Live Filing Date or (iii) provided in writing by Leju or its subsidiaries or VIEs to E-House specifically for inclusion in E-House’s annual or quarterly reports following the Live Filing Date to the extent (A) such information pertains to (x) Leju or its subsidiaries or VIEs or (y) the Leju Business or (B) E-House has provided prior written notice to Leju that such information will be included in one or more annual or quarterly reports, specifying how such information will be presented, and the information is included in such annual or quarterly reports; provided that this sub-clause (B) shall not apply to the extent that any such Liability arises out of or results from, or in connection with, any action or inaction of E-House or any of its subsidiaries or VIEs, including as a result of any misstatement or omission of any information by E-House or its subsidiaries or VIEs to Leju.

 

In the event that Leju or any of its subsidiaries or VIEs makes a payment to the E-House Indemnitees hereunder, and any of the E-House Indemnitees subsequently diminishes the Liability on account of which such payment was made, either directly or through a third-party recovery (other than a recovery indirectly from E-House or its subsidiaries or VIEs), E-House will promptly repay (or will procure an E-House Indemnitee to promptly repay) Leju (or its subsidiary or VIE that has made the payment) the amount by which the payment made by Leju (or its subsidiary or VIE that has made the payment) exceeds the actual cost of the associated indemnified Liability.

 

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5.3                               Indemnification by E-House.  Except as otherwise provided in this Agreement, E-House shall, for itself and as agent for each of its subsidiaries and VIEs, indemnify, defend (or, where applicable, pay the defense costs for) and hold harmless the Leju Indemnitees from and against, and shall reimburse each such Leju Indemnitee with respect to, any and all Losses that any third party seeks to impose upon the Leju Indemnitees or which are imposed upon the Leju Indemnitees to the extent relating to, arising from or resulting from, whether prior to, on or following the Live Filing Date, any of the following items (without duplication):

 

(a)                                 any Liability of E-House or its subsidiaries or VIEs and all Liabilities arising out of the operation or conduct of the E-House Business (in each case excluding the Leju Liabilities);

 

(b)                                 any breach by E-House or any member of the E-House Group of this  Agreement or any of the Inter-Company Agreements; and

 

(c)                                  any Liabilities relating to, arising out of or resulting from any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, with respect to all information (i) contained in the IPO Registration Statement, any issuer free writing prospectus or any preliminary, final or supplemental prospectus forming a part of the IPO Registration Statement and provided in writing by E-House or any of its subsidiaries or VIEs to Leju specifically for inclusion in the IPO Registration Statement, any issuer free writing prospectus or any preliminary, final or supplemental prospectus forming a part of the IPO Registration Statement), (ii) contained in any public filings made by E-House with the SEC following the Live Filing Date or (iii) provided in writing by E-House or its subsidiaries or VIEs to Leju specifically for inclusion in Leju’s annual or quarterly reports following the Live Filing Date to the extent (A) such information pertains to (x) E-House or any of its subsidiaries or VIEs or (y) the E-House Business or (B) Leju has provided prior written notice to E-House that such information will be included in one or more annual or quarterly reports, specifying how such information will be presented, and the information is included in such annual or quarterly reports; provided that this sub-clause (B) shall not apply to the extent that any such Liability arises out of or results from, or in connection with, any action or inaction of Leju or any of its subsidiaries or VIEs, including as a result of any misstatement or omission of any information by Leju or any of its subsidiaries or VIEs to E-House.

 

In the event that E-House or any of its subsidiaries or VIEs makes a payment to the Leju Indemnitees hereunder, and any of the Leju Indemnitees subsequently diminishes the Liability on account of which such payment was made, either directly or through a third-party recovery (other than a recovery indirectly from Leju or its subsidiaries or VIEs), Leju will promptly repay (or  will procure a Leju Indemnitee to promptly repay) E-House (or its subsidiary or VIE that has made the payment) the amount by which the payment made by E-House (or its subsidiary or VIE that has made the payment) exceeds the actual cost of the indemnified Liability.

 

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5.4                               Procedures for Defense, Settlement and Indemnification of the Third Party Claims.

 

(a)                                 Notice of Claims. If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including any Governmental Authority) other than E-House, Leju and their subsidiaries and VIEs of any claim or of the commencement by any such Person of any Action (collectively, a “Third Party Claim”) with respect to which an Indemnifying Party may be obligated to provide indemnification, E-House or Leju, as applicable, will ensure that such Indemnitee shall give such Indemnifying Party written notice thereof within thirty (30) days after becoming aware of such Third Party Claim. Any  such notice shall describe the Third Party Claim in reasonable detail. Notwithstanding the foregoing, the delay or failure of any Indemnitee or other Person to give notice as provided in this Section 5.4 shall not relieve the related Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is actually and substantially prejudiced by such delay or failure to give notice.

 

(b)                                 Defense by Indemnifying Party. An Indemnifying Party shall be entitled to participate in the defense of any Third Party Claim and, to the extent that it wishes, at its cost, risk and expense, to assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee, unless the Indemnifying Party is also a party to such proceeding and the Indemnitee determines in good faith that joint representation would be materially prejudicial to the Indemnitee’s defense. After timely notice from the Indemnifying Party to the Indemnitee of such election to so assume the defense thereof, the Indemnifying Party shall not be liable to the Indemnitee for any legal expenses of other counsel or any other expenses subsequently incurred by the Indemnitee in connection with the defense thereof. The Indemnitee agrees to cooperate in all reasonable respects with the Indemnifying Party and its counsel in the defense against any Third Party Claim. The Indemnifying Party shall be entitled to compromise or settle any Third Party Claim as to which it is providing indemnification, provided that any compromise or settlement shall be made only with the written consent of the Indemnitee, such consent not to be unreasonably withheld.

 

(c)                                  Defense by Indemnitee. If an Indemnifying Party fails to assume the defense of a Third Party Claim within thirty (30) days after receipt of notice of such claim, the Indemnitee will, upon delivering notice to such effect to the Indemnifying Party, have the right to undertake the defense, compromise or settlement of such Third Party Claim on behalf of and for the account of the Indemnifying Party subject to the limitations as set forth in this Section 5.4; provided, however, that such Third Party Claim shall not be compromised or settled without the written consent of the Indemnifying Party, which consent shall not be unreasonably withheld. If the Indemnitee assumes the defense of any Third Party Claim, it shall keep the Indemnifying Party reasonably informed of the progress of any such defense, compromise or settlement. The Indemnifying Party shall reimburse all such costs and expenses of the Indemnitee in the event it is ultimately determined that the Indemnifying Party is obligated to indemnify the Indemnitee with respect to such Third Party Claim. In no event shall an Indemnifying Party be liable for any settlement effected without its consent, which consent shall not be unreasonably withheld.

 

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5.5                               Additional Matters.

 

(a)                                 Cooperation in Defense and Settlement. With respect to any Third Party Claim that implicates both Leju and E-House in a material way due to the allocation of Liabilities, responsibilities for management of defense and  related indemnities set forth in this Agreement or any of the Inter-Company Agreements, the Parties agree to cooperate fully and maintain a joint defense (in a manner that will preserve the attorney-client privilege, joint defense or other privilege with respect thereto) so as to minimize such Liabilities and defense costs associated therewith. Any Party that is not responsible for managing the defense of such Third Party Claims shall, upon reasonable request, be consulted with respect to significant matters relating thereto and may, if necessary or helpful, engage counsel to assist in the defense of such claims.

 

(b)                                 Subrogation. In the event of payment by or on behalf of any Indemnifying Party to or on behalf of any Indemnitee in connection with any Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee, in whole or in part based upon whether the Indemnifying Party has paid all or only part of the Indemnitee’s Liability, as to any events or circumstances in respect of which such Indemnitee may have any right, defense or claim relating to such Third Party Claim against any claimant or plaintiff asserting such Third Party Claim or against any other person. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right, defense or claim.

 

5.6                               Survival of Indemnities.  The rights and obligations of the Parties under this Article V shall survive the sale or other transfer by any Party of any of its assets or businesses or the assignment by it of any Liabilities or the acquisition of control of such Party (by sale of capital stock or other equity interests, merger, consolidation or otherwise).

 

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ARTICLE 6. DISPUTE RESOLUTION.

 

6.1                               Dispute Resolution.

 

(a)                                 Any dispute, controversy or claim arising out of or relating to this Agreement, Offshore Transitional Service Agreement, or Non-Competition Agreement, or the breach, termination or validity thereof (“Dispute”) which arises between the Parties shall first be negotiated between appropriate senior executives of each Party who shall have the authority to resolve the matter. Such executives shall meet to attempt in good faith to negotiate a resolution of the Dispute prior to pursuing other available remedies, within ten (10) days of receipt by a Party of written notice of a Dispute, which date of receipt shall be referred to herein as the “Dispute Resolution Commencement Date.” Discussions and correspondence relating to trying to resolve such Dispute shall be treated as Confidential Information and Privileged Information of each of E-House and Leju developed for the purpose of settlement and shall be exempt from discovery or production and shall not be admissible in any subsequent proceeding between the Parties.

 

(b)                                 If the senior executives are unable to resolve the Dispute within 60  days from the Dispute Resolution Commencement Date, then, the Dispute will be submitted to the boards of directors of E-House and Leju. Representatives of each board of directors shall meet as soon as practicable to attempt in good faith to negotiate a resolution of the Dispute.

 

(c)                                  If the representatives of the two boards of directors are unable to resolve the Dispute within one hundred and twenty (120) days from the Dispute Resolution Commencement Date, on the request of any Party, the Dispute will be mediated by a mediator appointed pursuant to the mediation rules of the American Arbitration Association. Both Parties will share the administrative costs of the mediation and the mediator’s fees and expenses equally, and each Party shall bear all of its other costs and expenses related to the mediation, including but not limited to attorney’s fees, witness fees, and travel expenses. The mediation shall take place in Shanghai, China or in whatever alternative forum on which the Parties may agree.

 

(d)                                 If the Parties cannot resolve any Dispute through mediation within forty five (45) days after the appointment of the mediator (or the earlier withdrawal thereof), each Party shall be entitled to seek relief in a court of competent jurisdiction.

 

Unless otherwise agreed in writing, the Parties will continue to provide service and honor all other commitments under this Agreement and each Inter-Company Agreement during the course of dispute resolution pursuant to the provisions of this Section 6.1 with respect to all matters not subject to such dispute, controversy or claim.

 

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ARTICLE 7. MISCELLANEOUS.

 

7.1                               Consent of E-House.

 

(a)                                 Any consent of E-House pursuant to this Agreement or any of the Inter-Company Agreements shall not be effective unless it is in writing and evidenced by the signature of the Chief Executive Officer, Chief Operating Officer or Chief Financial Officer of E-House (or such other person that the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer or board of directors of E-House has specifically authorized in writing to give such consent).

 

(b)                                 Any consent of Leju pursuant to this Agreement or any of the Inter-Company Agreements shall not be effective unless it is in writing and evidenced by the signature of the Chief Executive Officer or Chief Financial Officer of Leju (or such other person that the Chief Executive Officer, Chief Financial Officer or board of directors of Leju has specifically authorized in writing to give such consent).

 

7.2                               Limitation of Liability.  IN NO EVENT SHALL E-HOUSE OR ANY MEMBER OF THE E-HOUSE GROUP OR LEJU OR ANY OF ITS SUBSIDIARIES OR VIES BE LIABLE TO THE OTHER PARTY, OR ITS AFFILIATED COMPANIES FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT EACH PARTY’S INDEMNIFICATION OBLIGATIONS FOR LIABILITIES AS SET FORTH IN THIS AGREEMENT OR IN ANY INTER-COMPANY AGREEMENT.

 

7.3                               Entire Agreement.  This Agreement, the Inter-Company Agreements and the Exhibits and Schedules referenced or attached hereto and thereto constitute the entire agreement among the Parties with respect to the subject matter hereof and thereof and shall supersede all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof and thereof.

 

7.4                               Governing Law and Jurisdiction.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, U.S.A. Subject to Section 6.1, each of the Parties hereby submits unconditionally to the jurisdiction of, and agrees that venue shall lie exclusively in, the federal and state courts located in the City of New York for purposes of the resolution of any disputes arising under this Agreement.

 

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7.5                               Termination; Amendment.This Agreement may be terminated or amended by mutual consent of the Parties, evidenced by an instrument in writing signed on behalf of each of the Parties. In the event of termination pursuant to this Section 7.5, no Party shall have any liability of any kind to the other Party. This Agreement shall terminate on the date that is five (5) years after the first date upon which members of the E-House Group no longer collectively own at least twenty percent (20%) of the voting power of the then outstanding securities of Leju; provided, however, that the provisions of Section 4.7 shall survive for a period of seven (7) years after the termination of this Agreement and the provisions of Section 4.5, Article V, Article VI and Article VII shall survive indefinitely after the termination of this Agreement.

 

7.6                               Notices.  Notices, offers, requests or other communications required or permitted to be given by a Party pursuant to the terms of this Agreement shall be given in writing to the other Party to the following addresses:

 

if to E-House:

 

Qiushi Building, 11/F

383 Guangyan Road, Zhabei District

Shanghai 200072

People’s Republic of China

Attention: Li-Lan Cheng

Facsimile: + 86 (21) 6133 0707

Email: chenglilan@ehousechina.com

 

if to Leju:

 

15/F Floor, Shoudong International Plaza, No. 5 Building, Guangqu Home

Dongcheng District, Beijing 100022

People’s Republic of China

Attention: Geoffrey Yinyu He

Facsimile: + 86 (10) 8722 4920

Email: yinyu@leju.com

 

or to such other address, facsimile number or email address as the Party to whom notice is given may have previously furnished to the other in writing as provided herein. Any notice involving non-performance or termination shall be sent by hand delivery or recognized overnight courier. All other notices may also be sent by facsimile or email, confirmed by mail. All notices shall be deemed to have been given when received, if hand delivered; when transmitted, if transmitted by facsimile or email; upon confirmation of delivery, if sent by recognized overnight courier; and upon receipt if mailed.

 

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7.7                               Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement.

 

7.8                               Binding Effect; Assignment.  This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement. This Agreement may be enforced separately by each Party’s subsidiaries and VIEs. No Party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other Party, and any such assignment shall be void; provided, however, each Party may assign this Agreement to a successor entity in conjunction with such Party’s reincorporation in another jurisdiction or into another business form.

 

7.9                               Severability.  If any term or other provision of this Agreement or the Exhibits or Schedules attached hereto is determined by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the  Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible.

 

7.10                        Failure or Indulgence not Waiver; Remedies Cumulative.  No failure or delay on the part of any Party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement or the Exhibits or Schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

7.11                        Authority.  Each of the Parties hereto represents to the others that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles.

 

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7.12                        Interpretation.  The headings contained in this Agreement, in any Exhibit or Schedule hereto and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized term used in any Exhibit or Schedule but not otherwise defined therein, has the meaning assigned to such term in this Agreement.  . For all purposes of this Agreement: (i) all references in this Agreement to designated “Sections”, “Schedules”, “Exhibits” and other subdivisions are to the designated Sections, Schedules, Exhibits and other subdivisions of the body of this Agreement unless otherwise indicated; (ii) the words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision; (iii) “or” is not exclusive; (iv) “including” and “includes” will be deemed to be followed by “but not limited to” and “but is not limited to”, respectively; (v) any definition of, or reference to, any law, agreement, instrument or other document herein will be construed as referring to such law, agreement, instrument or other document as from time to time amended, supplemented or otherwise modified; and (vi) any definition of, or reference to, any statute will be construed as referring also to any rules and regulations promulgated thereunder.

 

7.13                        Conflicting Agreements.  None of the provisions of this Agreement is intended to supersede any provision in any Inter-Company Agreement or any other agreement with respect to the respective subject matters thereof. In the event of conflict between this Agreement and any Inter-Company Agreement or other agreement executed in connection herewith, the provisions of such other agreement shall prevail.

 

7.14                        Third Party Beneficiaries.  None of the provisions of this Agreement shall be for the benefit of or enforceable by any third party, including any creditor of any Person. No such third party shall obtain any right under any provision of this Agreement or shall by reasons of any such provision make any claim in respect of any Liability (or otherwise)  against either Party hereto.

 

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WHEREFORE, the Parties have signed this Master Transaction Agreement effective as of the date first set forth above.

 

	
 
    	
/s/ E-House   (China) Holdings Limited
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Leju Holdings   Limited

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