Document:

Exhibit 10.12

 

EXCLUSIVE TECHNOLOGY CONSULTING AND SERVICES AGREEMENT

 

This EXCLUSIVE TECHNOLOGY CONSULTING AND SERVICES AGREEMENT is entered into on October 10, 2017 by and between:

 

PARTY A: HODE SHANGHAI LIMITED

Registration Number: 310141400014371

Registered Address: Room 551, Level 5, No. 55 Jilong Road, China (Shanghai) Pilot Free Trade Zone

 

PARTY B: SHANGHAI HODE INFORMATION TECHNOLOGY CO., LTD.

Registration Number: 91310115067801988G

Registered Address: Room 905-906, No. 2277-1 Zuchongzhi Road, Zhangjiang Hi-Tech Park, Shanghai

 

hereinafter individually referred to as a “Party”, collectively the “Parties”.

 

WHEREAS:

 

(1)                       Party A is a wholly foreign-owned enterprise incorporated under the laws of the People’s Republic of China (“PRC”);

 

(2)                       Party B is a limited liability company incorporated in Shanghai, China, of which the principal business includes transfer of technology, technology consulting and service of information technology, computer software and hardware as well as network engineering; business information consultation (except brokerage); corporate image planning; sale of toys, handicrafts and apparel; advertising design, production and agency; advertising on self-owned media; intellectual property agency (except patent agency) etc..

 

THEREFORE, upon consultations, the Parties hereby agree as follows:

 

1.                            DEFINITIONS AND INTERPRETATIONS:

 

1.1                     Unless otherwise provided herein, the terms below shall have the following meanings:

 

	
“this Agreement”
    	
 
    	
means the main body and appendices of this   Agreement;
    
	
 
    	
 
    	
 
    
	
“Date of Execution”
    	
 
    	
means the date on which the Agreement is duly   executed as written herein;
    
	
 
    	
 
    	
 
    
	
“Party B’s Business”
    	
 
    	
means any and all businesses that Party B may be   engaged in according to the operational licenses which are currently   maintained or will be obtained by Party B in future.
    
	
 
    	
 
    	
 
    
	
“Services”
    	
 
    	
means the services that Party A agrees to provide to   Party B pursuant to Article 2 of this Agreement
    
	
 
    	
 
    	
 
    
	
“Service Term”
    	
 
    	
means the term during which Party A provides to   Party B the services specified in Article 2 of this Agreement
    
	
 
    	
 
    	
 
    
	
“Service Fees”
    	
 
    	
means fees payable by Party B to Party A specified   in Article 3 of this Agreement
    

 

2.                            TERM AND SCOPE OF SERVICES:

 

2.1                  The term of services provided by Party A shall be 10 years, commencing from the Date of Execution. Unless Party B informs Party A otherwise at least 90 days before the expiration of the Service Term, the Service Term shall be automatically extended for another ten (10) years upon its first expiration and the subsequent expiration of any extended term.

 

2.2                  During the term of this Agreement, Party A agrees to, as the exclusive technology consulting and service provider of Party B, provide the relevant technology consulting and services to Party B (please refer to the details in Appendix I) in accordance with the terms and conditions of this Agreement.

 

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2.3                 Party B agrees to accept the exclusive technology consulting and services provided by Party A and further agrees that, during the term of this Agreement, it shall not accept any technology consulting and services in respect of Party B’s Business provided by any third party which are same as or similar (to those provided by Party A) without the prior written consent of Party A.

 

2.4                 Party A shall be the sole and exclusive owner of all rights and interests arising from or in connection with the performance of this Agreement, including without limitation the proprietary rights, intellectual property rights such as copyright, patent, know-how, trade secret and others, regardless of whether it is developed by Party A or by Party B based on the intellectual property owned by Party A.

 

3.                            CALCULATION AND PAYMENT OF FEES FOR TECHNOLOGY CONSULTING AND SERVICES (“CONSULTING SERVICE FEES”)

 

3.1                     The Parties agree that the Consulting Service Fees shall be calculated and paid in the manner set out in Appendix II of this Agreement.

 

3.2                     Party B shall pay to Party A the Service Fees under this Agreement in the manner and at the time designated by Party A. The Parties Agree that, payment of Service Fees may be deferred by Party B with prior written consent of Party A, or upon mutual agreement between the Parties, the payment schedule for the Service Fees payable by Party B to Party A provided in Article 3.1 of this Agreement may be adjusted in writing.

 

3.3                 Party A agrees that, during the Service Term, Party A shall be entitled to all economic benefits and bear all risks arising from or in connection with Party B’s Business; Party A shall provide financial support to Party B in the event that Party B is having operating losses or severe difficulties in operation, in which circumstances, Party A shall have the right to request Party B to cease operation and Party B shall comply with Party A’s request unconditionally.

 

3.4                     The obligation of Party B to pay to Party A the Service Fees under this Agreement shall be secured by the equity pledge provided by the shareholders of Party B over the equity interests held by them.

 

4.                            REPRESENTATIONS AND WARRANTIES

 

4.1                     Each Party hereby represents and warrants to the other Party, as at the Date of the Execution of this Agreement, that:

 

(1)                      it is a duly incorporated and validly existing legal person, has obtained all governmental approvals, licenses and permits required for its relevant business in accordance with the applicable laws and has the power to execute this Agreement and perform the obligations hereunder; all corporate actions necessary to authorize the execution, delivery and performance of this Agreement have been duly and validly taken by it at the general meeting of shareholders or its other governing body; this Agreement, upon due execution, shall constitute its valid and binding obligations, and enforceable against it pursuant to the terms of this Agreement.

 

(2)                      The execution, delivery and performance of its obligations under this Agreement: (a) will not be in conflict with, or result in a breach of any provision of the following documents, from time to time or after receipt of relevant notice: (i) its business license, articles or association, permit, governmental approval of its incorporation, agreements in connection with its incorporation or other constitutional documents, (ii) any other laws and regulations by which it is bound, (iii) any contract or other documents to which it is a party or by which it or its assets are bound; (b) will not cause any pledge or other encumbrances to be created by it or any third party over its assets; (c) will not cause any provisions of any contract or other documents to which it is a party or by which it or its assets are bound, to be terminated or amended by it or any third party; (d) will not cause the suspension, revocation, confiscation, damages or expiration without extension of any applicable governmental approval, permit and registration etc.;

 

 

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(3)                       there is no ongoing and pending litigation, arbitration or administrative proceedings which may affect its ability to perform its obligations under this Agreement, and to the best of its knowledge, there is no such threatened actions; and

 

(4)                       it has disclosed to the other Party all agreements, governmental approvals, permits or other documents to which it is a party or by which it or its assets are bound that may have a material adverse effect to its ability to fully perform its obligations under this Agreement, and it has not made any untrue statements of material fact or omitted to state material facts in the documents provided to the other Party previously.

 

4.2                     Party B hereby further represents and warrants to Party A as follows:

 

(1)                       Party B shall pay the Service Fees in full to Party A in a timely manner.

 

(2)                       During the Service Term, it will:

 

(a)                       maintain the continuous validity of all permits and licenses applicable to Party B’s Business; and

 

(b)                       promptly cooperate with Party A in its provision of services, and accept the reasonable opinions and suggestions given by Party A to Party B’s Business.

 

4.3                 During the Service Term, without prior written consent of Party A, Party B will not accept any services provided by any third party other than Party A which are same as or similar to those under Article 2.2 of this Agreement.

 

4.4                     Without prior written consent of Party A, it shall not sell, transfer, pledge or otherwise dispose of any legal interests in its assets (other than in the ordinary course of business), business or income, provide guarantee to any third party, or permit any security interest to be created by any third party over such interests at any time from the Date of Execution of this Agreement.

 

4.5                     Without prior written consent of Party A, it shall not inherent or assume any indebtedness (other than in the ordinary course of business) from the Date of Execution of this Agreement.

 

4.6                     Without prior written consent of Party A, it shall not enter into any material contract (other than in the ordinary course of business) from the Date of Execution of this Agreement.

 

4.7                    without prior written consent of Party A, it shall not merge, consolidate with or form a joint entity with any third party, acquire or be acquired or controlled by any third party, increase or reduce its registered capital or otherwise change the structure of its registered capital, from the Date of Execution of this Agreement.

 

4.8                  To the extent permitted by the laws of the PRC, Party B will appoint any person nominated by Party A as directors and senior management of the company; Party B shall not refuse to appoint such person nominated by Party A, unless otherwise agreed by Party A in writing or with legal grounds.

 

4.9                  Party A shall be entitled to inspect the accounts of Party B regularly or at any time. During the Service Term, Party B shall cooperate with Party A and its direct or indirect shareholders in audit and due diligence, provide relevant information and documents with respect to the operation, business, customers, finance and employees of Party B to the auditors and/or other professionals engaged by Party A, and give consent to Party A or its shareholders’ disclosure of such information and documents as and when required and necessary for listing.

 

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4.10          Each Party further warrants to the other Party that, it will execute all documents and take all actions, including without limitation the issuance of requisite authorizations, as may be reasonably necessary to carry out the purposes and intent of this Agreement.

 

4.11          Each Party further warrants to the other Party that, in the event that it is permitted by the laws of the PRC for Party A to directly hold Party B’s shares without affecting the legality of Party B’s conduct of its business, Party A shall be entitled to immediately exercise the Exclusive Call Option under the Exclusive Call Option Agreement entered into by and among Party A, Party B and shareholders of Party B on the Date of Execution of this Agreement in full.

 

5.                            CONFIDENTIALITY

 

5.1                 A Party (“Disclosing Party”) may have disclosed or will, from time to time, disclose to the other Party (“Receiving Party”) its confidential information (including without limitation information about business, customers, finance and agreements etc.). The Receiving Party shall be obliged to keep in strict confidence the confidential information, and shall not use the confidential information for purposes other than provided in this Agreement. The preceding provision shall not apply to the following information which: (a) as shown by written evidence of the Receiving Party, was rightfully known to the Receiving Party prior to the disclosure by the Disclosing Party; (b) enters or will enter the public domain through no breach by the Receiving Party of this Agreement; (c) is rightfully acquired by the Receiving Party from a third party without confidentiality obligation; and (d) is required to be disclosed in accordance with applicable laws, regulations or regulatory bodies’ requirement, or to its legal or financial advisor in the ordinary course of business.

 

5.2                 To the extent not in violation of Article 5.1, Party B agrees to use all reasonable methods to keep in confidence Party A’s confidential documents and information acknowledged or received by Party B in the course of receiving the exclusive consulting and services from Party A (hereinafter referred to as “Confidential Information”); Party B shall not divulge, provide or transfer any Confidential Information to any third party without Party A’s prior written consent. Upon termination of this Agreement, Party B shall, at the request of Party A, return any and all documents, information or software containing any such Confidential Information to Party A, or destroy them, delete all of such Confidential Information from any memory devices, and cease to use such Confidential Information.

 

5.3                 The Parties agree that this Article shall survive the amendment, termination and expiration of this Agreement.

 

6.                            INDEMNITY

 

Party B shall indemnify Party A against any loss, damage, liability and/or cost caused by any litigation, claim or other demands against Party A arising out of or in connection with the technology consulting and services required by Party B. Party B shall also hold Party A harmless against any loss and damage caused by Party B’s act or any claim from any third party as a result of Party B’s act.

 

7.                            LIABILITIES FOR BREACH OF CONTRACT

 

Unless otherwise provided in this Agreement, in the event that one Party (“Defaulting Party”) fails to perform any obligation hereunder or otherwise breaches this Agreement, the other Party (“Non-Defaulting Party”) may:

 

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(1)                       issue a written notice to the Defaulting Party indicating the nature and scope of the breach, and demanding the Defaulting Party to rectify (the breach) at its own cost within a reasonable period stipulated in the notice (“Rectification Period”); and

 

(2)                       if the Defaulting Party fails to rectify (the breach) within the Rectification Period, the Non-defaulting Party shall be entitled to demand the Defaulting Party to indemnify it against all liabilities arising from the breach, and to compensate the Non-defaulting Party for all its actual economic losses incurred as a result of the breach, including but not limited to the lawyer’s fee and legal expenses for litigation or arbitration in relation to such breach, in addition to the specific performance of this Agreement by the Defaulting Party. The Non-defaulting Party may also apply to the applicable arbitration body or court for the order of specific performance and/or enforcement of the provisions herein. The exercise of the aforesaid remedial rights shall not preclude the exercise of other remedies provided herein or under laws and regulations.

 

8.                            EFFECTIVENESS AND TERMINATION

 

8.1                 This Agreement shall become effective upon due execution by the Parties hereto.

 

8.2                 The effective term of this Agreement shall be terminated when all shares and/or assets of Party B held by the shareholders of Party B are legally transferred in full to Party A and/or one or more persons designated by Party A in accordance with the provisions of the Exclusive Call Option Agreement. Notwithstanding the foregoing, Party A shall have the right to terminate this Agreement with 30 days’ prior written notice to Party B at any time, and Party A shall not be liable for any breach of contract by unilaterally terminating this Agreement.

 

9.                            GOVERNING LAW AND DISPUTE RESOLUTION

 

9.1                 The effectiveness, interpretation, performance, and dispute resolution and so forth of this Agreement shall be governed by the laws of the PRC.

 

9.2                 Any dispute arising between the Parties in connection with the interpretation and performance of the provisions in this Agreement shall be resolved amicably through consultations between the Parties. If the Parties are unable to reach an agreement within thirty (30) days from the date of written notice served by one Party to the other Party requesting for such consultation, either Party may submit such dispute to China International Economic and Trade Arbitration Commission for arbitration in accordance with the arbitration rules thereof then in effect. The place of arbitration shall be in Beijing; the language to be used in arbitration shall be Chinese. The arbitral award shall be final and equally binding on the Parties of this Agreement.

 

9.3                 During the period while the arbitration proceedings are ongoing, except for the matters or obligations in dispute submitted for arbitration, both Parties shall continue to perform other obligations under this Agreement. The arbitrator shall have the right to make an appropriate award taking into account the actual circumstances so that Party A will receive appropriate legal remedy, including without limitation a restriction on the participation in the business operation of Party B, a restriction, prohibition or order on the transfer or disposal of the shares or assets of Party B, a demand to wind up Party B.

 

9.4                 Upon the request of one Party, the court with jurisdiction shall have the right to award provisional remedy, such as a judgement or ruling to seize or freeze the assets or shares of the defaulting party.  Upon the effectiveness of the arbitral award, either Party shall be entitled to apply for the execution of the arbitral award to the competent court with jurisdiction.

 

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10.                     FORCE MAJEURE

 

10.1              No Party shall be held liable for any delay or interruption in the performance of this Agreement to the extent such delay or interruption is caused by a “force majeure event”. A “Force Majeure Event” means any event beyond reasonable control of one Party and cannot be prevented with reasonable care of the party so affected, including without limitation, governmental action, acts of nature, fire, explosion, geographic changes, typhoon, flood, earthquake, tide, lightning or war.  However, any shortage of credit, capital or financing shall not be regarded as an event beyond reasonable control of the Party. The affected Party who is claiming to be exempted from its failure of fulfilling the obligations under this Agreement or any provisions hereunder by a Force Majeure Event shall as soon as practicable notify the other Party of such exemption and the necessary steps to be taken for the fulfillment of such obligations.

 

10.2              The Party affected by a Force Majeure Event shall not be held liable under this Agreement provided that the Party so affected shall make all reasonable efforts to perform this Agreement and the Party seeking exemption shall only be exempted from the obligations to the extent that the performance of which is delayed or prevented. Once the cause of such exemption has been corrected or rectified, both Parties agree to resume the performance of this Agreement with their best efforts.

 

11.                     NOTICES

 

Unless otherwise notified in writing of any change to the following addresses, all notices required to be given or made pursuant to this Agreement shall be delivered to the following addresses by hand, fax or registered mail.  The notice shall be deemed to be duly served on the date of acknowledgment receipt if sent by registered mail, or the date on which it is sent or transmitted if sent by hand or by fax as the case may be.  Where the notice is sent by fax, the original of such written notice shall be delivered to the following addresses by registered mail or by hand immediately after transmission.

 

Party A: Hode Shanghai Limited

Address: Room 551, Level 5, No. 55 Jilong Road, China (Shanghai) Pilot Free Trade Zone

Tel/Fax: [021-25099255

Attention: [Xu Yi]

 

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

Address: Room 905-906, No. 2277-1 Zuchongzhi Road, China (Shanghai) Pilot Free Trade Zone

Tel/Fax: [021-25099255]

Attention: [Chen Rui]

 

12.                     ASSIGNMENT

 

During the effective term of this Agreement, neither Party shall assign or transfer any or all their rights and/or obligations under this Agreement without prior written consent of the other Party to any third party save for Party A’s related parties.

 

13.                     SEVERABILITY

 

In the event that any provision of this Agreement is held invalid or unenforceable due to unconformity with relevant laws, such provisions shall become invalid or unenforceable only to the extent under such applicable laws and the legal effect of the remaining provisions hereunder shall not be affected.

 

14.                     AMENDMENT AND SUPPLEMENT OF THIS AGREEMENT

 

The Parties may amend and supplement this Agreement in writing. Any amendment and/or supplement to this Agreement by the Parties, upon due execution by the Parties is an integral part of and has the same effect with this Agreement.

 

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15.                               MISCELLANEOUS

 

15.1          No failure or delay by either Party in exercising any right pursuant to this Agreement shall be deemed as a waiver of such right, nor shall any exercise of any right in full or partially by a Party preclude such Party from exercising such right in future.

 

15.2          This Agreement shall be legally binding on the Parties and their legal successors or assigns.

 

15.3          In the event that any provision of this Agreement is held invalid, illegal or unenforceable by the laws of the PRC, all other provisions hereunder shall remain in full force and effect. Upon such determination that any provision is invalid, illegal or unenforceable, the Parties 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.

 

15.4              This Agreement constitutes the entire agreement between the Parties with respect to the subject matter contemplated in this Agreement, and supersedes all prior discussions, negotiations and agreements between the Parties with respect to such subject matter, including the Exclusive Technology Consulting and Services Agreement executed by the Parties on November 3, 2014.

 

15.5              This Agreement is made in Chinese and multiple originals with the same legal effect. The Parties may execute this Agreement in counterparts.

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives on the date first above written.

 

(End of body)

 

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[Signature Page]

 

	
PARTY A: HODE SHANGHAI LIMITED (COMPANY STAMP)
    
	
/s/ Hode Shanghai Limited
    
	
 
    
	
By:
    	
/s/ Chen Rui
    	
 
    
	
Legal / Authorized Representative:
    

 

	
PARTY B: SHANGHAI HODE INFORMATION   TECHNOLOGY CO., LTD. (COMPANY STAMP)
    
	
 
    
	
/s/ Shanghai Hode Information Technology   Co., Ltd.
    
	
 
    
	
By:
    	
/s/ Xu Yi
    	
 
    
	
Legal / Authorized Representative:
    

 

Signature page to the Exclusive Consulting and Services Agreement

 

 

Appendix I: List of Technology Consulting and Services

 

Party A will provide Party B the following technology consulting and services:

 

(1)             research and development of relevant technologies necessary for Party B’s Business, which include the development, design and creation of database software for the storage of relevant business information, UI software and other relevant technologies, and grant a license to Party B for the use of such technologies;

(2)             apply and implement the relevant technologies for the operation of Party B’s Business, including without limitation the systematic master design proposal, system installation, debugging and text run;

(3)             provide technology services including advertising design proposal, software design and creation of webpage with respect to Party B’s advertising business operation, and provide management consultancy and advice;

(4)             be responsible for daily maintenance, monitoring, test run and debugging of Party B’s computer network equipment, including entering users’ information into database in a timely manner, or updating the database with other business information provided by Party B from time to time. Update user interface on a regular basis and provide other relevant technology services;

(5)             provide consulting service on the procurement of relevant equipment, software and hardware necessary for the provision of network service by Party B, including without limitation the selection, system installation and testing of various utility software, application software and technology platform, and provide consultancy and advice on the selection, model and performance of various types of accessorial hardware, facilities and equipment;

(6)             provide adequate training and technology support and assistance to the employees of Party B, including without limitation the training on customer service or techniques and others; brief Party B and its employees with its knowledge and experience in the installation and operation of system and equipment, and assist Party B in resolving all issues arising therefrom at any time; provide consultancy and advice on other online editing platform or software application, and assist Party B in compiling, and collecting various types of information and contents;

(7)             advice on and respond to any technology inquiries of Party B in relation to network equipment, technology products and software;

(8)             other technology and consulting services as may be necessary for Party B’s Business; and

(9)             other services.

 

 

Appendix II: Calculation and Payment of Technology Consulting and Services Fees

 

I.                     Technology Consulting and Service Fees

 

Subject to the laws of China, after offsetting the losses of previous years (if necessary) and deducting all costs, expenses and taxes necessary for its business operation, Party B shall pay to Party A the sum which is equivalent to the full amount of its profit before tax excluding the technology consulting and service fees under this Agreement as the agreed technology consulting and service fees provided in this Agreement. Party A shall have the right to make adjustments to the amount of such fees taking into account the details of the technology consulting and services provided by it to Party B, Party B’s business condition and the requirement of Party B’s growth.

 

II.                Payment Method

 

Party A shall, within 15 days from the end of each quarter, issue an invoice to Party B based on the forecast of the aforesaid fees of the preceding quarter. Party B shall, within 15 days upon receipt of such invoice pay the amount set out therein to a bank account designated by Party A. Party B shall pay any unpaid balance of the aforesaid fees to a bank account designated by Party A, based on the audited financial statements of the preceding year on or before March 31 of each year. Party A shall return any excessive amount of the aforesaid fees to a bank account designated by Party B, based on the audited financial statements of the preceding year on or before March 31 of each year. Party A may agree to the deferred payment or adjustment of the amount of any specific payment to be made by Party B should it deem necessary, or the Parties may consult with each other to agree on the adjustments to be made to the payment schedule for and amount of the said fees.Exhibit 10.13

 

EXCLUSIVE CALL OPTION AGREEMENT

 

This EXCLUSIVE CALL OPTION AGREEMENT (this “Agreement”) is entered into on October 10, 2017 by and among:

 

1.                            HODE SHANGHAI LIMITED, a wholly foreign-owned enterprise incorporated in China with its registered address at Room 551, Level 5, No. 55 Jilong Road, China (Shanghai) Pilot Free Trade Zone (“Party A”);

 

2.                            XU YI, Identity Card Number: ***, a holder of 34.7833% of the equity interests in Shanghai Hode Information Technology Co., Ltd.;

 

3.                            CHEN RUI, Identity Card Number: ***, a holder of 52.3030% of the equity interests in Shanghai Hode Information Technology Co., Ltd.;

 

4.                            CAO XI, Identity Card Number: ***, a holder of 2.5397% of the equity interests in Shanghai Hode Information Technology Co., Ltd.;

 

5.                            WEI QIAN, Identity Card Number: ***, a holder of 6.9850% of the equity interests in Shanghai Hode Information Technology Co., Ltd.;

 

6.                            LI NI, Identity Card Number: ***, a holder of 3.3890% of the equity interests in Shanghai Hode Information Technology Co., Ltd.

 

(XuYi, Chen Rui, Cao Xi, Wei Qian and Li Ni, collectively “Party B”);

 

7.                            SHANGHAI HODE INFORMATION TECHNOLOGY CO., LTD. (“Shanghai Hode”), a limited liability company registered and existing under the laws of China with its registered address at Room 905-906, No. 2277-1 Zuchongzhi Road, Zhangjiang Hi-Tech Park, Shanghai (“Party C”).

 

In this Agreement, each of the above individually being referred to as a “Party”, collectively the “Parties”.

 

WHEREAS:

 

1.                            As at the date of this Agreement, Party B holds in aggregate 100% equity interests of the Party C.

 

2.                            Party B and Party C are in desirous of granting Party A and/or a person or persons designated by it, to the extent permitted by the laws of China, an exclusive call option to purchase all or part of the shares and/or assets held by Party C, and Party A is in desirous of accepting such option.

 

THEREFORE, upon consultations, the Parties hereby agree as follows:

 

1.                            SALE AND PURCHASE OF SHARES AND ASSETS

 

1.1                     Grant of Option

 

Party B hereby irrevocably grant Party A or a person or persons designated by it (“Nominee”, means (a) the direct or indirect shareholder(s) of Party A and the direct or indirect subsidiary(ies) of such shareholder(s); (b) Chinese national directors in Party A, direct or indirect shareholder(s) of Party A and the direct or indirect subsidiary(ies) of such shareholders(s)), to the extent permitted by the laws of China (including all laws,  regulations, rules, circulars, interpretations and regulatory documents with binding effects promulgated by legislative, administrative and judicial departments at both national or local levels before or after the execution of this Agreement, hereinafter referred to as “PRC Laws”), during the effective term of this Agreement and in accordance with the steps of exercise determined by Party A in its sole and absolute discretion, an exclusive and irrevocable option to purchase all or part of the shares held by Party B in Party C (“Purchased Shares”) at the price stipulated in Article 1.2 of this Agreement (“Exclusive Share Purchase Option”). Party C hereby agrees to the grant of the share purchase option granted to Party A by Party B. Reference to “person” in this Article and this Agreement includes any individual, corporation, joint venture, partnership, enterprise, trust or non-corporate entity.

 

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Party C hereby irrevocably grants Party A or its Nominee, to the extent permitted by the PRC Laws, during the effective term of this Agreement and in accordance with the steps of exercise determined by Party A in its sole and absolute discretion, an exclusive and irrevocable option to purchase all or part of the assets (“Purchased Assets”) of Party C (“Exclusive Asset Purchase Option”, together with the “Exclusive Share Purchase Option”, collectively referred to as “Exclusive Call Option”).

 

The Exclusive Call Option is an exclusive right owned by Party A. Without prior written consent of Party A, Party B shall not sell, offer to sell, transfer, gift, pledge or otherwise dispose of all or part of the Purchased Shares to any other person, and shall not authorize other person to purchase all or part of the Purchased Shares; neither shall Party B sell, offer to sell, transfer, gift, pledge or otherwise dispose of all or part of the Purchased Assets to any other person, and nor shall it authorize other person to purchase all or part of the Purchased Assets;

 

1.2                     Purchase Price

 

Upon exercise of the Exclusive Call Option by Party A, with respect to the Purchased Shares, the purchase price shall be the lowest price permitted by the PRC Laws effective as at the transfer of shares; with respect to the Purchased Assets, the purchase price shall be the net book value of the Purchased Assets, provided that the lowest price permitted by the PRC Laws then in effect is lower than the net book value of the Purchased Assets. Otherwise, the purchase price shall be the lowest price permitted by the PRC Laws instead.

 

1.3                     Exercise of Option

 

The exercise of the Exclusive Call Option by Party A shall be subject to, and in compliance with the PRC Laws. Party A has the absolute discretion to determine the time, manner and number of times of its exercise of the Exclusive Call Option.

 

At each exercise of the Exclusive Share Purchase Option decided by Party A, a notice specifying the number of Purchased Shares to be acquired from Party B by Party A (“Share Purchase Notice”), shall be served by Party A to Party B and Party C (the form of the Share Purchase Notice is attached hereto as Appendix I).

 

At each exercise of the Exclusive Asset Purchase Option decided by Party A, a notice specifying the amount of assets to be acquired from Party C by Party A (“Asset Purchase Notice”, together with the “Share Purchase Notice”, collectively referred to as “Purchase Notice”), shall be served by Party A to Party B and Party C (the form of the Asset Purchase Notice is attached hereto as Appendix II).

 

1.4                     Actions in connection with the Exercise of Option

 

In the event that Party A exercises the Exclusive Call Option, to ensure that the transfer of shares/assets is in full compliance with the provisions of this Agreement and the applicable laws, in substance and procedure, Party B and Party C severally and jointly covenant to take the following actions:

 

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(1)                      Within seven working days from the service of the Purchase Notice upon Party B and Party C, Party B and Party C shall prepare and execute all necessary documents in connection with the transfer of the Purchased Shares/Assets including the share/asset transfer agreements, and transfer all the Purchased Shares/Assets to Party A and/or its Nominee on a lump-sum basis;

 

(2)                      Party B shall procure Party C to hold a shareholders’ meeting to pass resolutions at such meeting to approve the transfer of shares/assets from Party B or Party C to Party A and/or its Nominee;

 

(3)                       with respect to the transfer of Purchased Shares, if necessary, Party B and Party C shall execute a share transfer agreement in the form of Appendix III (“Share Transfer Agreement”) attached hereto or in such other substance and form prescribed by the PRC Laws in relation to the share transfer agreement. Completion of the transfer of Purchased Shares (upon completion of the registration for the change with the industrial and commercial administration authority) shall take place no later than the fifteenth working day from the service of the Share Purchase Notice upon Party B and Party C, unless otherwise agreed by the parties taking into account the actual circumstances.

 

(4)                       upon execution of this Agreement, Party B and Party C shall execute one or several sets of power of attorney in substance and form as set forth in Appendix IV of this Agreement, to authorize any person designed by Party A to execute and deliver to Party C, on the behalf of Party B, the share/asset transfer agreement and any other documents required under this Agreement.

 

(5)                       Party B and Party C shall take all necessary actions, to process without delay and complete the procedures for relevant approvals and registrations, so that the Purchased Shares/Assets will be registered in the name of Party A and/or its Nominee free from any security interests. Reference to “security interests” includes guarantee, mortgage, pledge, third party right or interests, any option to purchase shares, right to acquire, right of first refusal, right to set-off, retention of title or other arrangement of guarantee, but excludes any security interests created pursuant to the Equity Pledge Agreement (as defined below);

 

(6)                       Party B and Party C shall take all necessary actions to ensure that the transfer of the Purchased Shares/Assets will not be hindered in substance or procedure. Save as expressly provided under the conditions of this Agreement, neither Party B nor Party C shall create any obstacle or restrictive conditions to the transfer of Purchased Shares/Assets.

 

1.5                     The Parties hereby agree that at the exercise of the Exclusive Call Option by Party A, Party B and/or Party C shall pay to Party A or its Nominee all proceeds from such transfer without any consideration.

 

2.                            COVENANTS OF THE PARTIES

 

2.1                     Covenants of Party B and Party C

 

Each of Party B and Party C hereby irrevocably covenants that:

 

(1)                       it shall not, without prior written consent of Party A or Bilibili Inc., the parent company of Party A (“Party A’s Parent Company”), supplement, modify or amend the constitutional documents of party C, increase or reduce the registered capital of Party C, or otherwise change the structure of the registered capital of Party C;

 

3

 

(2)                       it shall maintain the financial position and business standard and practice, and ensure that Party C and its subsidiaries are validly existing, and continue to carry out its business and manage its affairs in a diligent and effective way;

 

(3)                       without prior written consent of Party A or Party A’s Parent Company, it shall not sell, transfer, pledge or otherwise dispose of any legal or beneficial interests in the assets, business or income of Party C, or permit to create any security interest over such interests at any time after the date of this Agreement;

 

(4)                       without prior written consent of Party A or Party A’s Parent Company, it shall not incur, inherent, assume or permit the existence of any indebtedness, save for those (i) incurred in the usual or ordinary course of business other than by way of borrowing; and (ii) which has been disclosed to Party A whose prior written consent has been obtained;

 

(5)                       it shall continue to carry on the business in the ordinary course to preserve the value of Party C’s assets, and nothing that may have material effect on the condition of business and asset value of Party C shall be caused by its act or omission;

 

(6)                       without prior written consent of Party A or Party A’s Parent Company, it shall not enter into any material procurement contract, other than in the ordinary course of business (for the purpose of this paragraph, any contract with a value exceeding RMB500,000 shall be deemed a material contract);

 

(7)                       without prior written consent of Party A or Party A’s Parent Company, it shall not extend any loan or credit to any person;

 

(8)                       it will provide to Party A, at its request, all the operational and financial information of Party C;

 

(9)                       Party C shall purchase from and maintain with an insurer acceptable to Party A adequate insurance, the insured amount and coverage of which are comparable to what is usually maintained by a company running similar business and owing similar properties or assets in the same area;

 

(10)                without prior written consent of Party A or Party A’s Parent Company, it shall not merge, consolidate with, acquire or invest in any person;

 

(11)                it shall immediately notify Party A of any actual or possible litigation, arbitration or administrative proceedings in relation to the assets, business and income of Party C;

 

(12)                it will execute all documents, take all actions, submit all claims or defend against all claims, which are necessary or appropriate to protect Party C’s proprietary rights over its assets;

 

(13)                without prior written consent of Party A or Party A’s Parent Company, it will not distribute any dividends, attributable profits and/or any assets to the shareholders; in the event Party B receives any of the abovementioned interests, it shall, within three working days, notify Party A and immediately transfer such interests to Party A without any consideration;

 

2.2                     Covenants of Party B

 

Party B hereby irrevocably covenants that:

 

4

 

(1)                       without prior written consent of Party A or Party A’s Parent Company, it shall not sell, transfer, pledge or otherwise dispose of any legal or beneficial interests in Party C’s shares held by it, or permit to create any security interest over such interests at any time after the date of this Agreement, save for the equity pledge created over Party C’s shares held by Party B pursuant to the “Equity Pledge Agreement” entered into between the parties at the date of this Agreement (“Equity Pledge Agreement”);

 

(2)                       without prior written consent of Party A or Party A’s Parent Company, it shall not vote for or support at any shareholders’ meeting or sign any shareholders’ resolution which approves to sell, transfer, pledge or otherwise dispose of any legal or beneficial interests in any shares or assets, or permit to create any security interests over such interests, save as created in favor of Party A or its Nominee;

 

(3)                       without prior written consent of Party A or Party A’s Parent Company, it shall not vote for or support at any shareholders’ meeting or sign any shareholders’ resolution which approves any merger or consolidation with, acquisition of or investment in any person by Party C, or any spin-off, change in registered capital and corporate structure of Party C;

 

(4)                       it shall procure the passing of resolution at shareholders’ meeting of Party C approving the transfer of Purchased Shares pursuant to this Agreement;

 

(5)                       it will execute all documents, take all actions, submit all claims or defend against all claims, which are necessary or appropriate to protect its ownership over the shares held by it;

 

(6)                       it will appoint any person nominated by Party A as a director of Party C, at the request of Party A;

 

(7)                       as and when requested by Party A, it will immediately transfer, unconditionally, the Purchased Shares to Party A or its Nominee, and waive its right of first refusal with respect to such transfer of shares by the other shareholders;

 

(8)                       it shall fully comply with all provisions of this Agreement and other agreements jointly or separately entered into by Party A, Party A’s Parent Company, Party B and Party C, duly perform all obligations under such agreements, and nothing that may have material effect on the validity and enforceability of such agreements shall be caused by its act or omission to act.

 

3.                            REPRESENTATIONS AND WARRANTIES OF PARTY B AND PARTY C

 

Each of Party B and Party C hereby severally and jointly represents and warrants to Party A, as at the date of this Agreement and at each transfer, that:

 

3.1                  It has the power and capacity to execute and deliver this Agreement, and any share/asset transfer agreement (collectively, the “Transfer Agreements”) executed for each transfer of the Purchased Shares/Assets contemplated thereunder to which it is a party, and to perform its obligations under this Agreement and any Transfer Agreements. This Agreement and any Transfer Agreements to which it is a party, upon due execution, shall constitute its legal, valid and binding obligations, and enforceable against it pursuant to the terms of this Agreement and the Transfer Agreements.

 

3.2                  The execution, delivery and performance of its obligations under this Agreement or the relevant share/asset transfer agreements: (a) will not be in conflict with, or result in a breach of any provision of the following documents, from time to time or after receipt of relevant notice: (i) its business license, articles or association, permit, governmental approval of its incorporation, agreements in connection with its incorporation or other constitutional documents, (ii) any other laws and regulations by which it is bound, (iii) any contract, agreement, lease or other documents to which it is a party or by which it or its assets are bound; (b) will not cause any pledge or other encumbrances to be created by it or any third party over its assets, save for the equity pledge created over Party C’s shares pursuant to the Equity Pledge Agreement; (c) will not cause any provisions of any contract, agreement, lease or other documents to which it is a party or by which it or its assets are bound, to be terminated or amended by it or any third party; (d) will not cause the suspension, revocation, confiscation, damages or expiration without extension of any applicable governmental approval, permit and registration etc.;

 

5

 

3.3                 Party C has the good and transferrable title over all its assets free from any security interests.

 

3.4                 Party C does not have any outstanding liabilities, save for those (i) incurred in the ordinary course of business; and (ii) has been disclosed to Party A whose prior written consent has been obtained; Party C’s shares are legally and validly owned by Party B. No encumbrance is created by Party B over Party C’s shares, save for the equity pledge created over Party C’s shares pursuant to the Equity Pledge Agreement.

 

3.5                 Party C complies with all applicable laws and obligations; and

 

3.6                 there is no ongoing, pending or possible litigation, arbitration or administrative proceedings in relation to the shares and assets of Party C.

 

Party B undertakes to Party A that it has made appropriate arrangement and executed all necessary documents to ensure that in the event of his or her death, loss of capacity, bankruptcy, divorce or other circumstances that may affect his or her ability to exercise shareholder’s rights, the performance of this Agreement shall not be affected or impaired by persons who may acquire the shares or relevant rights as a result thereof such as his or her heir and successor, guardian, creditor or spouse etc..

 

Each Party warrants that, in the event that it is permitted by the PRC Laws for Party A to directly hold Party C’s shares without affecting the legality of Party C’s conduct of its business, Party A shall be entitled to exercise the Exclusive Call Option in full immediately.

 

4.                            EFFECTIVE DATE AND TERM

 

This Agreement shall become effective upon due execution by the Parties hereto.

 

The effective term of this Agreement shall be terminated when all shares and/or assets of Party C held by Party B are legally transferred in full to Party A and/or its Nominee in accordance with the provisions of this Agreement. Notwithstanding the foregoing, Party A shall have the right to terminate this Agreement with 30 days’ prior written notice to Party B and Party C at any time, and Party A shall not be liable for any breach of contract by unilaterally terminating this Agreement.

 

5.                            GOVERNING LAW AND DISPUTE RESOLUTION

 

5.1                    The effectiveness, interpretation, performance, and dispute resolution and so forth of this Agreement shall be governed by the PRC Laws.

 

5.2                    Any dispute arising between the Parties in connection with the interpretation and performance of the provisions in this Agreement shall be resolved amicably through consultations between the Parties. If the Parties are unable to reach an agreement within thirty (30) days from the date of written notice served by one Party to the other Party requesting for such consultation, any Party may submit such dispute to China International Economic and Trade Arbitration Commission for arbitration in accordance with the arbitration rules thereof then in effect. The place of arbitration shall be in Beijing; the language to be used in arbitration shall be Chinese. The arbitral award shall be final and equally binding on the Parties of this Agreement.

 

6

 

5.3                     During the period while the arbitration proceedings are ongoing, except for the matters or obligations in dispute submitted for arbitration, both Parties shall continue to perform other obligations under this Agreement. The arbitrator shall have the right to make an appropriate award taking into account the actual circumstances so that Party A will receive appropriate legal remedy, including without limitation a restriction on the participation in the business operation of Party C by Party B, a restriction, prohibition or order on the transfer or disposal of the shares or assets of Party C held by Party B, a demand on Party B to wind up Party C.

 

5.4                     Upon the request of one Party, the court with jurisdiction shall have the right to award provisional remedy, such as a judgement or ruling to seize or freeze the assets or shares of the defaulting party.  Upon the effectiveness of the arbitral award, any Party shall be entitled to apply for the execution of the arbitral award to the competent court with jurisdiction.

 

6.                            TAXES AND EXPENSES

 

Each Party shall bear any and all taxes, costs and expenses related to transfer and registration incurred by or imposed on such Party arising from the preparation and execution of this Agreement and Transfer Agreements and the consummation of the transactions contemplated thereunder.

 

7.                            NOTICES

 

Unless otherwise notified in writing of any change to the following addresses, all notices required to be given or made pursuant to this Agreement shall be delivered to the following addresses by hand, fax or registered mail.  The notice shall be deemed to be duly served on the date of acknowledgment receipt if sent by registered mail, or the date on which it is sent or transmitted if sent by hand or by fax as the case may be.  Where the notice is sent by fax, the original of such written notice shall be delivered to the following addresses by registered mail or by hand immediately after transmission:

 

Party A: Hode Shanghai Limited

Address: Room 551, Level 5, No. 55 Jilong Road, China (Shanghai) Pilot Free Trade Zone

Tel/Fax: [021-25099255]

Attention: [Xu Yi]

 

Party B:

 

Xu Yi

Address: [Block 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District, Shanghai]

Tel: [021-25099255]

Attention: Xu Yi

 

Chen Rui

Address: [Block 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District, Shanghai]

Tel: [021-25099255]

Attention: Chen Rui

 

Cao Xi

Address: [Block 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District, Shanghai]

Tel: [021-25099255]

Attention: Cao Xi

 

7

 

Wei Qian

Address: [Block 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District, Shanghai]

Tel: [021-25099255]

Attention: Wei Qian

 

Li Ni

Address: [Block 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District, Shanghai]

Tel: [021-25099255]

Attention: [Li Ni]

 

Party C: Shanghai Hode Information Technology Co., Ltd.

Address: [Block 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District, Shanghai]

Tel/Fax: [021-25099255]

Attention: [Chen Rui]

 

8.                            CONFIDENTIALITY OBLIGATIONS

 

8.1                 A Party (“Disclosing Party”) may have disclosed or will, from time to time, disclose to the other Party (“Receiving Party”) its confidential information (including without limitation information about business, customers, finance and agreements etc.). The Receiving Party shall be obliged to keep in strict confidence the confidential information, and shall not use the confidential information for purposes other than provided in this Agreement. The preceding provision shall not apply to the following information which: (a) as shown by written evidence of the Receiving Party, was rightfully known to the Receiving Party prior to the disclosure by the Disclosing Party; (b) enters or will enter the public domain through no breach by the Receiving Party of this Agreement; (c) is rightfully acquired by the Receiving Party from a third party without confidentiality obligation; and (d) is required to be disclosed in accordance with applicable laws, regulations or regulatory bodies’ requirement, or to its legal or financial advisor in the ordinary course of business.

 

8.2                 The abovementioned obligations of confidentiality on each Party hereto are continuous and shall survive the termination of this Agreement.

 

9.                            FURTHER ASSURANCE

 

The Parties agree to execute such further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement.

 

10.                     FORCE MAJEURE

 

10.1             No Party shall be held liable for any delay or interruption in the performance of this Agreement to the extent such delay or interruption is caused by a “force majeure event”. A “Force Majeure Event” means any event beyond reasonable control of one Party and cannot be prevented with reasonable care of the party so affected, including without limitation, governmental action, acts of nature, fire, explosion, geographic changes, typhoon, flood, earthquake, tide, lightning or war.  However, any shortage of credit, capital or financing shall not be regarded as an event beyond reasonable control of the Party. The affected Party who is claiming to be exempted from its failure of fulfilling the obligations under this Agreement or any provisions hereunder by a Force Majeure Event shall as soon as practicable notify the other Party of such exemption and the necessary steps to be taken for the fulfillment of such obligations.

 

10.2             The Party affected by a Force Majeure Event shall not be held liable under this Agreement provided that the Party so affected shall make all reasonable efforts to perform this Agreement and the Party seeking exemption shall only be exempted from the obligations to the extent that the performance of which is delayed or prevented. Once the cause of such exemption has been corrected or rectified, both Parties agree to resume the performance of this Agreement with their best efforts.

 

8

 

11.                     MISCELLANEOUS

 

11.1              Variation, Amendment and Supplement

 

The Parties may amend and supplement this Agreement in writing. Any amendment and/or supplement to this Agreement by the Parties, upon due execution by the Parties is an integral part of and has the same effect with this Agreement.

 

11.2              Entire Agreement

 

Save as amended, supplemented or varied in writing subsequent to the execution of this Agreement, this Agreement constitutes the entire agreement between the Parties with respect to the subject matter contained herein, and supersedes all prior oral or written negotiations, representations and agreements between the Parties with respect to such subject matter, including the Exclusive Call Option Agreement executed by the Parties and other relevant parties on December 23, 2014.

 

11.3              Headings

 

The headings of the Articles in this Agreement are inserted for the convenience of reference only, and under no circumstances shall be used in or otherwise affect the construction or interpretation of this Agreement.

 

11.4              Language

 

This Agreement is made in Chinese and multiple originals.

 

11.5              Severability

 

In the event that any one or several provisions of this Agreement is held invalid, illegal or unenforceable in any way by any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or impaired in any way. The Parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.

 

11.6              Successor

 

This Agreement shall be binding on the successors or permitted assigns of the Parties.

 

11.7              Survival

 

Any obligations which accrued or due under this Agreement prior to the expiration or early termination of this Agreement shall survive the expiration or early termination thereof.

 

The provisions of Articles 6, 8 and 11.8 shall survive the termination of this Agreement.

 

11.8              Waiver

 

A waiver of the terms and conditions of this Agreement by any Party shall be made in writing and unanimous agreed and signed by all Parties. The waiver by any Party of any breach by the other Party shall not be deemed as a waiver of any other breach by the said other Party of a similar nature.

 

9

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties on the date first above written.

 

10

 

(End of body)

 

	
PARTY A: HODE SHANGHAI   LIMITED (COMPANY STAMP)
    
	
 
    	
 
    
	
/s/ Hode Shanghai Limited
    	
 
    
	
 
    	
 
    	
 
    
	
Authorized Representative:
    	
/s/ Chen Rui
    	
 
    

 

PARTY B:

 

	
XU YI
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Xu Yi
    	
 
    
	
 
    	
 
    	
 
    
	
CHEN RUI
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Chen Rui
    	
 
    
	
 
    	
 
    	
 
    
	
CAO XI
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Cao Xi
    	
 
    
	
 
    	
 
    	
 
    
	
WEI QIAN
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Wei Qian
    	
 
    
	
 
    	
 
    	
 
    
	
LI NI
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Li Ni
    	
 
    

 

Signature page to the Exclusive Call Option Agreement

 

 

(End of body)

 

	
PARTY C: SHANGHAI HODE   INFORMATION TECHNOLOGY CO., LTD. (COMPANY STAMP)
    
	
 
    
	
/s/ Shanghai Hode Information Technology   Co., Ltd.
    
	
 
    	
 
    	
 
    
	
Authorized Representative:
    	
Xu Yi
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Xu Yi
    	
 
    
	
 
    	
 
    	
 
    
				

 

Signature page to the Exclusive Call Option Agreement

 

 

Appendix I

 

Share Purchase Notice

 

To: Xu Yi, Chen Rui, Cao Xi, Wei Qian, Li Ni

 

Xu Yi, Chen Rui, Cao Xi, Wei Qian, Li Ni and us entered into an Exclusive Call Option Agreement on October 10, 2017. Terms used in this notice shall have the same meanings as ascribed to them in the agreement.

 

We hereby request to exercise the Exclusive Share Purchase Option under the Exclusive Call Option Agreement and we/ [           ] [name of company/individual] designated by us as the Nominee will acquire 34.7833%, 52.3030%, 2.5397%, 6.9850% and 3.3890% of the equity interests in Shanghai Hode Information Technology Co., Ltd. held by Xu Yi, Chen Rui, Cao Xi, Wei Qian and Li Ni respectively. Xu Yi, Chen Rui, Cao Xi, Wei Qian and Li Ni shall, upon receipt of this notice, complete the transfer of the Purchased Shares within fifteen working days in accordance with the provisions of the Exclusive Call Option Agreement.

 

	
 
    	
Shanghai   Hode Information Technology Co., Ltd. (Company Stamp)
    
	
 
    	
/s/ Shanghai Hode Information Technology Co., Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date:
    

 

 

Appendix II:

 

Asset Purchase Notice

 

To: Shanghai Hode Information Technology Co., Ltd.

 

Xu Yi, Chen Rui, Cao Xi, Wei Qian, Li Ni and us entered into an Exclusive Call Option Agreement on October 10, 2017. Terms used in this notice shall have the same meanings as ascribed to them in the agreement.

 

We hereby request to exercise the Exclusive Asset Purchase Option under the Exclusive Call Option Agreement and we/ [           ] [name of company/individual] designated by us as the Nominee will acquire all your assets as set out in a separate list (the “Proposed Acquired Assets”). You shall, upon receipt of this notice, transfer all the Proposed Acquired Assets to us/[name of the designated company/individual] in accordance with the provisions of the Exclusive Call Option Agreement.

 

	
 
    	
Hode   Shanghai Limited (Company Stamp)
    
	
 
    	
/s/ Hode Shanghai Limited
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date:
    

 

 

Appendix III

 

Share Transfer Agreement

 

This SHARE TRANSFER AGREEMENT (this “Agreement”) is entered into on [   ] by and among:

 

TRANSFEROR: XU YI

Identity Card Number: ***

Residential address:

 

TRANSFEROR: CHEN RUI

Identity Card Number: ***

Residential address:

 

TRANSFEROR: CAO XI

Identity Card Number: ***

Residential address:

 

TRANSFEROR: WEI QIAN

Identity Card Number: ***

Residential address:

 

TRANSFEROR: LI NI

Identity Card Number: ***

Residential address:

 

TRANSFEREE: [HODE SHANGHAI LIMITED OR ITS NOMINEE]

Registration Number:

Address:

 

The Parties agree as follows:

 

1.                            Xu Yi, Chen Rui, Cao Xi, Wei Qian and Li Ni agree to sell at the lowest price permitted by the laws of China, and the Transferee agrees to purchase, 34.7833%, 52.3030%, 2.5397%, 6.9850% and 3.3890% shares in Shanghai Hode Information Technology Co., Ltd. held by Xu Yi, Chen Rui, Cao Xi, Wei Qian and Li Ni respectively (hereinafter referred to as “Purchased Shares”) on the same terms and conditions.

 

2.                           Upon completion of the transfer of the Purchased Shares, the Transferors shall cease to have any rights over the Purchased Shares, and the Transferee shall have acquired all rights attached to the Purchased Shares.

 

3.                           The effectiveness, interpretation, performance, and dispute resolution and so forth of this Agreement shall be governed by the laws of China. Matters that are not covered by this Agreement or any dispute arising between the Parties in connection with the interpretation and performance of the provisions in this Agreement shall be resolved amicably in accordance with the provisions of the Exclusive Call Option Agreement or through consultations between the Parties. If the Parties are unable to reach an agreement within thirty (30) days from the occurrence of the dispute, any Party may submit such dispute to China International Economic and Trade Arbitration Commission for arbitration in accordance with the arbitration rules thereof then in effect. The place of arbitration shall be in Beijing; the Tribunal shall consist of three arbitrators. Each of the claimant and respondent shall select one arbitrator and the third arbitrator shall be selected by China International Economic and Trade Arbitration Commission. If the claimant or the respondent consists of more than two persons (natural or legal person), the arbitrator shall be appointed by mutual written agreement between the two persons. The arbitral award shall be final and equally binding on the Parties of this Agreement. During the period while the arbitration proceedings are ongoing, except for the matters or obligations in dispute submitted for arbitration, both Parties shall continue to perform other obligations under this Agreement. The arbitrator shall have the right to make an appropriate award taking into account the actual circumstances so that the Transferee will receive appropriate legal remedy, including without limitation a restriction on the participation in the business operation of Shanghai Hode Information Technology Co., Ltd., a restriction, prohibition or order on the transfer or disposal of the shares or assets of Shanghai Hode Information Technology Co., Ltd. held by the Transferors, a demand on the Transferors to wind up Shanghai Hode Information Technology Co., Ltd..

 

 

4.                            Upon the request of the Transferee, the court with jurisdiction shall have the right to award provisional remedy, such as a judgement or ruling to seize or freeze the assets or shares of the defaulting party.  Upon the effectiveness of the arbitral award, any Party shall be entitled to apply for the execution of the arbitration award to the competent court with jurisdiction.

 

5.                            This Agreement shall become effective upon execution by the Parties hereto.

 

	
TRANSFEROR:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
XU   YI (Signature)
    	
/s/ Xu Yi
    	
 
    
	
 
    	
 
    	
 
    
	
CHEN   RUI (Signature)
    	
/s/ Chen Rui
    	
 
    
	
 
    	
 
    	
 
    
	
CAO   XI (Signature)
    	
/s/ Cao Xi
    	
 
    
	
 
    	
 
    	
 
    
	
WEI   QIAN (Signature)
    	
/s/ Wei Qian
    	
 
    
	
 
    	
 
    	
 
    
	
LI   NI (Signature)
    	
/s/ Li Ni
    	
 
    

 

 

	
TRANSFOREE:   
    	
 
    
	
 
    	
 
    
	
[HODE   SHANGHAI LIMITED OR ITS NOMINEE]
    	
 
    
	
/s/ Hode Shanghai Limited
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Legal Representative or Authorized Representative: 
    	
 
    
	
 
    	
 
    
	
/s/ Chen Rui
    	
 
    
	
 
    	
 
    

 

 

Appendix IV

 

Irrevocable Power of Attorney (I)

 

Pursuant to the Exclusive Call Option Agreement entered into by and among myself, Hode Shanghai Limited and Shanghai Hode Information Technology Co., Ltd. on October 10, 2017, I hereby execute this Power of Attorney.

 

I hereby irrevocably appoint and authorize [              ] (hereinafter referred to as “Attorney-in-fact”) as my Attorney-in-fact, with full authority to: (1) prepare and execute the Share Transfer Agreement (as defined in the Exclusive Call Option Agreement); (2) prepare and execute all other necessary documents in connection with the transfer of the Purchased Shares (as defined in the Exclusive Call Option Agreement); (3) proceed with all relevant legal procedures for the approvals and registrations with respect to the transfer of the Purchased Shares.

 

I hereby agree and acknowledge that, the Attorney-in-fact shall have the full power to exercise the rights within the scope of authorization set out above in its sole and absolute discretion. I undertake to be bound by any obligations or liabilities arising from the exercise of such rights by the Attorney-in-fact.

 

This Power of Attorney shall become effective from the date of execution and remain valid throughout the effective term of the Exclusive Call Option Agreement.

 

The authorization is hereby granted.

 

	
Xu   Yi (Signature)
    	
 
    
	
/s/ Xu Yi
    	
 
    
	
 
    	
 
    
	
Date:                     2017
    	
 
    

 

 

Appendix IV

 

Irrevocable Power of Attorney (II)

 

Pursuant to the Exclusive Call Option Agreement entered into by and among myself, Hode Shanghai Limited and Shanghai Hode Information Technology Co., Ltd. on October 10, 2017, I hereby execute this Power of Attorney.

 

I hereby irrevocably appoint and authorize [              ] (hereinafter referred to as “Attorney-in-fact”) as my Attorney-in-fact, with full authority to: (1) prepare and execute the Share Transfer Agreement (as defined in the Exclusive Call Option Agreement); (2) prepare and execute all other necessary documents in connection with the transfer of the Purchased Shares (as defined in the Exclusive Call Option Agreement); (3) proceed with all relevant legal procedures for the approvals and registrations with respect to the transfer of the Purchased Shares.

 

I hereby agree and acknowledge that, the Attorney-in-fact shall have the full power to exercise the rights within the scope of authorization set out above in its sole and absolute discretion. I undertake to be bound by any obligations or liabilities arising from the exercise of such rights by the Attorney-in-fact.

 

This Power of Attorney shall become effective from the date of execution and remain valid throughout the effective term of the Exclusive Call Option Agreement.

 

The authorization is hereby granted.

 

	
Chen   Rui (Signature)
    	
 
    
	
/s/ Chen Rui
    	
 
    
	
 
    	
 
    
	
Date:                     2017
    	
 
    

 

 

Appendix IV

 

Irrevocable Power of Attorney (III)

 

Pursuant to the Exclusive Call Option Agreement entered into by and among myself, Hode Shanghai Limited and Shanghai Hode Information Technology Co., Ltd. on October 10, 2017, I hereby execute this Power of Attorney.

 

I hereby irrevocably appoint and authorize [              ] (hereinafter referred to as “Attorney-in-fact”) as my Attorney-in-fact, with full authority to: (1) prepare and execute the Share Transfer Agreement (as defined in the Exclusive Call Option Agreement); (2) prepare and execute all other necessary documents in connection with the transfer of the Purchased Shares (as defined in the Exclusive Call Option Agreement); (3) proceed with all relevant legal procedures for the approvals and registrations with respect to the transfer of the Purchased Shares.

 

I hereby agree and acknowledge that, the Attorney-in-fact shall have the full power to exercise the rights within the scope of authorization set out above in its sole and absolute discretion. I undertake to be bound by any obligations or liabilities arising from the exercise of such rights by the Attorney-in-fact.

 

This Power of Attorney shall become effective from the date of execution and remain valid throughout the effective term of the Exclusive Call Option Agreement.

 

The authorization is hereby granted.

 

	
Cao   Xi (Signature)
    	
 
    
	
/s/ Cao Xi
    	
 
    
	
 
    	
 
    
	
Date:                     2017
    	
 
    

 

 

Appendix IV

 

Irrevocable Power of Attorney (IV)

 

Pursuant to the Exclusive Call Option Agreement entered into by and among myself, Hode Shanghai Limited and Shanghai Hode Information Technology Co., Ltd. on October 10, 2017, I hereby execute this Power of Attorney.

 

I hereby irrevocably appoint and authorize [              ] (hereinafter referred to as “Attorney-in-fact”) as my Attorney-in-fact, with full authority to: (1) prepare and execute the Share Transfer Agreement (as defined in the Exclusive Call Option Agreement); (2) prepare and execute all other necessary documents in connection with the transfer of the Purchased Shares (as defined in the Exclusive Call Option Agreement); (3) proceed with all relevant legal procedures for the approvals and registrations with respect to the transfer of the Purchased Shares.

 

I hereby agree and acknowledge that, the Attorney-in-fact shall have the full power to exercise the rights within the scope of authorization set out above in its sole and absolute discretion. I undertake to be bound by any obligations or liabilities arising from the exercise of such rights by the Attorney-in-fact.

 

This Power of Attorney shall become effective from the date of execution and remain valid throughout the effective term of the Exclusive Call Option Agreement.

 

The authorization is hereby granted.

 

	
Wei   Qian (Signature)
    	
 
    
	
/s/ Wei Qian
    	
 
    
	
 
    	
 
    
	
Date:                     2017
    	
 
    

 

 

Appendix IV

 

Irrevocable Power of Attorney (V)

 

Pursuant to the Exclusive Call Option Agreement entered into by and among myself, Hode Shanghai Limited and Shanghai Hode Information Technology Co., Ltd. on October 10, 2017, I hereby execute this Power of Attorney.

 

I hereby irrevocably appoint and authorize [              ] (hereinafter referred to as “Attorney-in-fact”) as my Attorney-in-fact, with full authority to: (1) prepare and execute the Share Transfer Agreement (as defined in the Exclusive Call Option Agreement); (2) prepare and execute all other necessary documents in connection with the transfer of the Purchased Shares (as defined in the Exclusive Call Option Agreement); (3) proceed with all relevant legal procedures for the approvals and registrations with respect to the transfer of the Purchased Shares.

 

I hereby agree and acknowledge that, the Attorney-in-fact shall have the full power to exercise the rights within the scope of authorization set out above in its sole and absolute discretion. I undertake to be bound by any obligations or liabilities arising from the exercise of such rights by the Attorney-in-fact.

 

This Power of Attorney shall become effective from the date of execution and remain valid throughout the effective term of the Exclusive Call Option Agreement.

 

The authorization is hereby granted.

 

	
Li   Ni (Signature)
    	
 
    
	
/s/ Li Ni
    	
 
    
	
 
    	
 
    
	
Date:                     2017

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