Document:

Operation and Intellectual
Property Service Agreement

 

THE OPERATION AGREEMENT
(the "Agreement") is made on October 20, 2015, and signed by the following parties in Beijing, China.

 

Party A:

		(1)	Mr. Liu Fu ,

Address Group 1, Committee 9, BaoAn Street, Kedong Town, Kedong County Heilongjiang Province

ID
No. 230230196505050257, 

The shareholder holding
65 percent of the shares of Shuhai Information Technology Co., Ltd ("the underlying shares ");

		(2)	Mrs. LIU Zhixin, 

Address Room
1204, Unit 3, Building 7, Tianqinwan Wuyi Road, Xinxiu District, Xianghe County, Langfang City,
Hebei Province.

ID
No. 230230198601020225, 

The shareholder holding
35 percent of the shares of Shuhai Information Technology Co., Ltd ("the underlying shares ");

		(3)	Shuhai Information Technology Co., Ltd ("domestic company")
is a company duly organized, validly existing and in good standing as a legal person under the laws of China.

The number of business
License 110106018653375,

The
registered address Room 21BC1 No.1 Xinghuo Road, Fengtai District, Beijing City 

 

Party B:

Tianjin Information Sea Information
Technology Co., Ltd, 

The
registered address Room
1704-8359 Block A, Building Kuangshiguoji Xiangluowan Tianjin Free Trade (Central Business District).

 

The
legal representative Liu Zhixin;

 

    

     

    

WHEREAS:

1. Party A is a domestic company with
all its shareholders. The domestic company and its two shareholders here are regarded as a joint party in this Agreement.

2. Party B is lawfully formed and validly
existing by virtue of the laws of China.

The license
number is 230100401000531, and the registered address is No.2 Floor 8 Unit 3 Building 206-1 Xianfengmarui Community Nangang
District, Harbin City;

3. Party A intends to entrust Party B
to operate the domestic company;

4. Party A intends to employ party B to
provide intellectual property services to the domestic company;

5. Party B operates the domestic company
and provides intellectual property services to the domestic company when receiving a commission of party A.

 

NOW, THEREFORE, in consideration of the
premises and the mutual promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:

 

Article I Operation

1.1 In accordance with the terms of the
Agreement, party A agrees to entrust Party B to operate the domestic company, Party B agrees to operate the domestic company.

1.2 The Agreement is valid
from the commencement date. And in the case of any of the following circumstances, this Agreement shall be terminated.

(1) The company is
at the expiration of its functioning term; the follow-up company is established.

(2)
Acquisition completed date of domestic companies.

1.3 Party B should be solely responsible
for the management of the domestic company during the operation period, the management services shall include but not limited to:

(1) Party B should
be solely responsible for the management of the domestic company, including the appointment of the board of directors, hiring managers
and so on. Party A or its polling agent should be based on party B’s board resolutions making

    

     

    

the resolution of shareholder meeting
or the board resolution.

(2) Party B should
manage and control all assets of the domestic company, the domestic company shall open an operating account or an existing account
designated as an operating account. Party B has the right to decide to use the funds of the operating account, the signer of the
account should be designated or confirmation by party B. All funds of the domestic company should be stored in operating account,
including but not limited to: the existing working capital; the income of selling production equipment, inventory, raw materials
and accounts receivable to party B; all payment should be completed through the operating account, including but not limited to:
the existing accounts payable and operating costs, the payment of staff’s salaries and asset purchases; operating income
should be stored in this account.

(3) Party B has the
right to full control and manage the domestic company’s financial affairs and daily maintenance,
such as the signing and execution of the contract, the payment of taxes and fees, and so on.

(4) Party B shall provide
intellectual property services for the domestic company.

(5) Party B shall provide
purchasing management services for the domestic company.

(6) Party B shall provide
marketing management services for the domestic company.

(7) Party B shall provide
inventory management services for the domestic company.

(8) If the domestic
company needs extra money to sustain the operations of a company, party B shall through bank loans or other ways, fully complying
with Chinese laws and regulations, to provide the additional funds; while party A shall provide necessary assistance.

1.4 In view of party B’s consideration
for the above services, party A should pay operation fee equaling to pre-tax income of the domestic company to party B. Operation
fees are as follows: The operating fees is monthly income deducting operating costs, charges and taxes (income tax exclusions).
Those fees should be equal to the expected pre-tax income of the domestic company during the term of

    

     

    

Agreement. If there is no pre-tax income,
the domestic company does not need to pay the operating fee. When the company suffers losses, correlative fees should be carried
forward to the next month to offset next month’s operation fees. Both parties should make calculations. Party A shall pay
the operating fees for this month before the 20th next month. The operating fees should be adjusted once a quarter (quarterly adjustment)
before the tax declaration to ensure the after-tax profits of the company is zero in this quarter. Furthermore, the operating fees
should be adjusted (annual adjustment) once a year before the annual tax declaration to ensure the annual after-tax profits of
the company is zero in this year.

1.5 When the domestic company lacks
enough money to repay the owed debt, party B shall pay off the debts on behalf of the domestic company. If the domestic
company's net asset is lower than its registered capital, party B shall provide capital for the domestic company to make up
for the deficit.

 

ARTICLE II Rights and obligations
of both parties

2.1 In accordance with the terms of the
Agreement, the rights and obligations of party A as follows:

(1) During the period of validity of the
Agreement, party A shall transfer management of the company and all business information including business license and articles
of association to party B;

(2) Without the consent of party B, party
A shall not be entitled to make any business decision about domestic company;

(3) Party A shall have the right to
be informed of operating conditions of the domestic company and put forward the corresponding suggestion;

(4) According to the requirements of party
B, party A shall assist party B’s activities of operation;

(5) In accordance with the provisions
of "shareholder vote agency”, party A shall perform its obligation and not be in violation of the Agreement;

(6) Party A shall not use the
identity of the shareholder status in any forms to interfere in party B’s management of the domestic company;

    

     

    

(7) Without the consent of party B, party
A shall not entrust or award a third party other than the party B to exercise the shareholders' rights ;

(8) Without the consent of party B, party
A shall not entrust a third party other than the party B to manage the domestic company in any forms;

(9) Party A shall not unilaterally terminate
the Agreement for any reasons;

(10) Under the provisions of the Agreement,
party A shall enjoy their other rights and perform their other obligations.

2.2 In accordance with the terms of the
Agreement, the rights and obligations of party B as follows:

(1) Party B shall have the right independently
and fully to manage the domestic company;

(2) Party B shall have the right to
dispose all assets of the domestic company;

(3) Party B shall have the right to delegate
all directors of the domestic company;

(4) Party B shall have the right to
delegate the domestic company's general manager, deputy general manager, financial manager and other senior management
personnel;

(5) In accordance with the provisions
of "shareholder vote agency”, party B shall convene the shareholders’ meeting and sign shareholders’ resolution;

(6) Under the provisions
of the Agreement, party B shall enjoy their other rights and perform their other obligations.

 

ARTICLE III Guarantees and commitments

From the date of the Agreement, both parties
shall make the following guarantees and commitments to each other:

(1) Both parties have the right to sign
the Agreement, and have the ability to fulfill the Agreement;

(2) Both parties should timely complete
the authorization of the Agreement’s execution and handover in the form of shareholder resolutions;

(3) The two parties on behalf of the staff
have got the proper authorization to execute the Agreement;

(4) After the implementation Agreement,
both parties have no reasons to deny that the

    

     

    

Agreement shall be binding on both parties
and the Agreement is valid for both parties;

(5) To perform the Agreement not
mean to :

•
violate their business license, articles of association or terms of other similar document;

•
violate the provisions of Chinese laws and regulations or other government regulations;

•
lead to the other contract (one party involved ) default.

 

ARTICLE IV Effectiveness

The Agreement shall take effect after
it is signed and sealed by the authorized representatives of both parties.

 

ARTICLE V Responsibility for breach of
the Agreement

During the term of the Agreement, violation
of any provision of the Agreement is deemed to breach, the default party should bear the non-breaching party’s losses caused
by breach.

 

ARTICLE VI Force majeure

If the Agreement or part of the terms
cannot be fulfilled due to force majeure, cannot be regarded as default. The affected party should gather the evidence of force
majeure for the first time; both parties shall negotiate to solve the problem due to force majeure of unfulfilled agreement.

 

ARTICLE VII Governing law

The
validity, interpretation
and performance implementation of, and the settlement of disputes in respect of, the Agreement shall be governed by the laws and
regulations of the PRC.

 

ARTICLE VIII Dispute resolution

    

     

    

All disputes in connection with the Agreement
or the execution there of shall be settled through friendly negotiations. In case no settlement can be reached through negotiations,
the case should then be submitted for arbitration to China International Economic and Trade Arbitration Commission, Beijing. The
arbitral award is final and binding upon both parties.

 

ARTICLE IX Confidentiality

9.1 Without judicial authorities or government
departments’ legal requirements or another party’s agreement, the employees and representatives of both parties who
contact and understand the terms of the Agreement shall keep strictly confidential and not disclose any provisions to third parties,
otherwise, the party or person shall bear the corresponding legal responsibility.

9.2 The above confidentiality obligations
will not be terminated due to termination of this Agreement.

 

ARTICLE X Severability

10.1 Due to legal concerns lead to any
provision of the Agreement is invalid or unenforceable, the offending provision shall be stricken without affecting the remaining
provisions of the Agreement.

10.2 In the above case, the parties shall
through friendly consultations, as soon as possible to prepare the supplementary agreement to replace the invalid provision.

 

ARTICLE XI No-waiver

11.1 No failure or delay in exercising
any right hereunder this agreement or under the law shall be deemed a waiver therefore by any party.

11.2 No partly failure in exercising the
party’s rights shall be deemed as a waiver thereof the rest of the party’s rights.

11.3 If one party excuses the other party
does not fulfill some of the provisions of the Agreement, such excuses shall not be considered excuses for failing to perform the
same terms.

    

     

    

 

XII. Nontransferable

Unless specified in the Agreement, any
party shall not assign any rights and obligations of the Agreement to third parties without written consent of the other party,
nor provide third-parties guarantees or similar behavior.

 

XIII. Other matters

13.1 Both parties should bear all
the taxes and fees of the execution of the Agreement in accordance with the laws and regulations.

13.2 When the Agreement comes into
effect, any revision by both parties shall be an integral part of this Agreement and have the same effect. In the case of
revision are inconsistent with the Agreement, shall be subject to revision. If there are multiple corrections, the latest
revision shall prevail.

13.3 The present Agreement shall be made
out in sextuplicate. Each party keeps one original. And the rest will be used for registration or other necessary government approval
purposes.

13.4 The Agreement shall come into effect
and be implemented from the date of signature of both parties.

 

 

 

 

 

 

 

 

 

 

 

 

    

     

    

 

 

 

(No Text on this Page, only for Signature.)

 

	Party A:	 	 	 
	Mr. Liu Fu	 	 	Mrs. Liu Zhixin
	 	 	 	 
	 	 	 	 
	Signature:   /s/ Fu Liu          	 	 	Signature:/s/ Liu Zhixin

 

	Shuhai Information Technology Co., Ltd
	 
	Signature: /s/ Liu Zhixin                                  
	 
	Name:     Liu
    Zhixin                         
	 
	Position:Legal representative
	 
	 
	Party B:
	 
	Tianjin Information Sea Information Technology Co., Ltd
	 
	Signature: /s/ Liu Zhixin                                           
	 
	Name:   Liu Zhixin                                    
	 
	Position:Legal representativeShareholders’ Voting rights
Entrustment Agreement

 

 

The following parties in Beijing sign this
agreement:

 

		(1)	Tianjin Information Sea Information
Technology Co., Ltd,

The
registered address Room 1704-8359 Block A Building Kuangshiguoji Xiangluowan Tianjin Free Trade
(Central Business District),

The
legal representative Liu Zhixin(“Party
A”);

 

		(2)	Shuhai Information Technology Co., Ltd,

The
registered address Room 21BC1 No.1 Xinghuo Road, Fengtai District, Beijing City,

The
legal representative  Liu Zhixin (“Party
B”)

 

		(3)	Mr Liu Fu,

The
house address: Group 1, Committee 9, BaoAn Street, Kedong Town, Kedong County Heilongjiang Province,

ID
No. 230230196505050257;

 

Mrs
Liu Zhixi,

The
house address : Room 1204, Unit 3, Building 7, Tianqinwan Wuyi Road, Xinxiu District, Xianghe
County, Langfang City, Hebei Province.,

ID
No. 230230198601020225;

 

(Hereinafter“Party
C”);

 

WHEREAS,

		1.	Party C is the present shareholder of Party B, having a 100% stake
of Party B;

 

		2.	Party C entrusts Party A to exercise their voting rights of Party
B, and Party A accepts the entrustment. 

 

NOW, THEREFORE, Parties have reached an agreement
through friendly consultation to conclude the following contract.

 

I.    Voting
rights commission

 

		1.1	Party C hereby irrevocably promised that Party A or its designated person is full authorized to
exercise Party C’s right as the shareholder of Party B. Based on the then articles of Party B, Party A shall have the following
rights respectively (hereinafter jointly referred to as authorization):

 

		(1)	Be present at the shareholders meeting of Party B as Party C’s
agent;

		(2)	Exercise the voting right to vote on issues to be discussed or decide
on behalf of Party C. 

		(3)	The right to nominate and elect directors;

		(4)	Propose for an interim meeting;

		(5)	Other shareholder voting rights under the articles of party B (including
any other

    -1-

     

    

shareholder voting rights after
the modified articles).

 

		1.2	Any legal consequences arising from the exercise of the above authorization is recognized and assumed
by Party C.

 

		1.3	Party C hereby confirms that Party A can exercise the above delegate rights without prior consent
of Party C. Party A shall inform Party C promptly.

 

II    Right
to know

 

		2.1	For the purpose of exercising the entrust right of this agreement, Party B is entitled to know
the operation, business, customer, finance, staff and other relevant information of the company, Party B should provide active
coordination.

 

III    Exercise of the
entrusment right

  

		3.1	If necessary, Party A can appoint or entrust specific person within the company (one or more person(s))
to exercise part or all of the delegate rights within the agreed scope of the first one, this will be recognized and assumed by
Party C.

 

		3.2	Party C shall provide adequate assistance when Party A exercises the authorization, if necessary
(for example, in order to meet government’s requirement of approval, registration and recording), Party C shall sign on shareholder
resolutions made by Party B or other relevant legal documents on time.

 

		3.3	Awarding or exercise of the authorization can not be achieved under this Agreement for any reason
(except for default of Party C or B) at any time within the term of this Agreement, both parties should seek alternative scheme
immediately, and sign supplementary agreement or modify or adjust the terms of this agreement if necessary to ensure the purposes
of the present agreement.

 

IV    Liability exemption
and Compensation

 

		4.1	Party B agrees to compensate all the losses that Party A and the designated person suffered or
likely to be incurred for exercising the authorization, including but not limited to any loss that third party brings a lawsuit,
recover, arbitration, claims or government administrative investigation or punishment. However, if due to malice or gross negligence
of Party A, such losses are not covered.

 

		4.2	Party A agrees to compensate all the losses in the process of exercising the authorization for
their malicious or gross negligence and to keep Party C not be harmed, including but not limited to any losses that third party
brings a lawsuit, recover, arbitration, claims or government administrative investigation or punishment.

 

V    Representations and Warranties

 

		5.1	Party C hereby declare and guarantee as follows;

		5.1.1	They have full capacity for civil conduct as Chinese citizen. They also have full and independent
legal status and legal capacity. They are duly authorized to sign, deliver and perform this Agreement and can be sued as an

    -2-

     

    

independent party.

 

		5.1.2	They have full power and authority to sign and deliver this agreement and all other documents related
to the transactions involved in this agreement. They should sign and deliver this agreement They should sign this agreement legally
and properly. This Agreement is legally binding on them.

 

		5.1.3	When the agreement comes into effect, they will be referred to as party B's registered legal shareholder.
In addition to this agreement and signed with A’s "Share Pledge Agreement" and "Option Agreement" involved
rights, entrusted right without any third party rights. According to the agreement, Party A can completely and fully exercise entrust
rights in accordance with the articles of association of Party B .

 

		5.1.4	Signed, submitted and performance of this agreement: (i)It does not conflict with the following
documents or in violation of the provisions, and not violate the following documents after receiving the notice or with the passage
of time: (A) any Chinese laws or other legal provisions which is legally binding, (B) as the parties concerned, the constrained,
the assets subject to the constraints of any contract, agreement, lease or other documents; (ii) It does not cause any third party
has the right to set any of its assets mortgage or encumbrances; (iii)It does not lead to it as a party or its or their assets
subject to constraints bound of any terms and conditions of the contract, agreement, lease or other documents to terminate or modify
or cause the third party has the right to terminate or amend the terms of such documents; (iv)It does not lead to a its applicable
government approval, license, registration suspended, revoked, damaged, abandoned or maturity cannot be renewed.

 

		5.1.5	There is no conditions that affect its ability to fulfill the obligations under this contract,
has been and remains unresolved litigation, arbitration, bankruptcy or other judicial or administrative procedures, and according
to the known no one claimed to take the above actions.

 

		5.1.6	It has disclosed all documents to other parties for any current valid issued by the Chinese government
agencies, those documents may have significant adverse effect on the parties’ ability to fully perform obligations under
this contract. The previous documents provided to other parties without either for any misrepresentation or omission of important
facts.

 

		5.2	Party A and Party B representations and warranties as follows:

 

		5.2.1	They are registered under registered legal and legitimate existence of a limited liability company.
They are an independent legal person status; they have complete and independent legal status and legal capacity to sign, deliver
and perform this agreement and can be sued as an independent party.

		5.2.2	They have full power and authorization given by the company for signing and delivering this Agreement
and other agreements related to the mentioned in this agreement, within the company which has full power and authority to complete
the transaction.

 

		5.3	Party B Represents and Warranties, Party C is the legally shareholders
registered at the

    -3-

     

    

commencement of this agreement.
According to the agreement, Party A can completely and fully exercised delegate rights according to the effect articles of associations.

 

VI    Term of Agreement

 

		6.1	Since the date of both parties signed, the agreement will take effect, unless the parties have
agreed in writing to terminate early, or as long as any Party of party C is still the shareholder of Party B, this Agreement shall
remain in force indefinitely.

 

		6.2	If any Party of Party C through prior consent of Party A agreed to transfer entire share, then
the party will no longer be a party of this Agreement, but the obligations and commitments of other parties in this Agreement will
not get adverse effects.

 

VII    Notification

 

		7.1	All notices, requirement and other communication required or permitted by this agreement shall
be in writing and shall be deemed sufficient where sent by certified mail to the receiving party at the address set forth above
or at such other address as that party may have designated in writing. 

 

		7.2	Except as otherwise provided herein, all notices or demands sent by registered mail shall be deemed
received 5 days after they have been sent and notices or demands sent by telex or fax shall be deemed received at the time of the
dispatch thereof.

 

VIII    Default Clause

 

		8.1	The parties agree that if any party ("Defaulting Party") was a material breach of
this Agreement, or fails to perform them after being urged to do so, which shall be a breach of this Agreement. Either party that
fails to perform its obligations under the Agreement or fails to perform them as contracted shall be bear the liability for the
breach of contract by continuing to perform the obligations, taking remedial measures, compensating for losses. If a party has
delayed the performance of the main obligations, and fails to perform them in a reasonable limit after being urged to do so. Then
other parties have the right to require the defaulting party correct or remedial measures within ten days. Then (1) if Party C
or Party B are the defaulting parties, Party A demanding remedy shall be entitled to claim compensation for losses and damages;
(2) If Party A is the defaulting party, other parties are entitled to require the defaulting party compensate, but Party A has
no right to terminate this agreement at any case.

 

		8.2	The rights and remedies in this Agreement are cumulative and not exclusive of any rights and remedies
provided by law.

 

		8.3	If any provision of this section is held invalid, the remainder of this section shall not be affected
thereby.

 

IX    MISCELLANEOUS 

 

    -4-

     

    

		9.1	The agreement is made in Chinese, original quadruplicates (4) copies, and each has the same legal
effect.

 

		9.2	This agreement shall be governed, construed and interpreted in accordance with the laws of the
People’s Republic of China.

 

		9.3	All disputes in connection with this Agreement or the execution there of shall be settled through
friendly negotiations. In case no settlement can be reached through negotiations within 30 days, the disputes shall be submitted
to China International Economic and Trade Arbitration Commission for arbitration that shall be conducted in accordance with the
Commission's arbitration rules in effect at the time of applying for arbitration. The arbitral award is final and binding upon
both parties.

 

		9.4	The rights, powers and remedies herein provided by this agreement do not exclude any other rights,
powers and remedies provided by law. And any rights, powers and remedies enacted by one of the parties do not exclude that party
executes other rights, powers and remedies.

 

		9.5	No failure or delay in exercising any right hereunder this agreement or under the law (“the
party’s rights”) shall be deemed a waiver thereof by any party. In addition, no partly failure or delay in exercising
the party’s rights shall be deemed as a waiver thereof the rest of the party’s rights.

 

		9.6	The title of each provision of this agreement is only for the index, and such headings shall not
be used to explain or affect the provisions of this agreement in any case.

 

		9.7	Every clause of this agreement is separable and independent from any other provision. For any one
or more clauses of this agreement becomes invalid, illegal, or cannot be performed, the rest clauses of this agreement shall not
be affected.

 

		9.8	This Agreement cannot be altered or amended except by an instrument in writing signed by both parties.

 

		9.9	Neither party shall transfer or assign any rights or delegate any obligations hereunder, in whole
or in part, whether voluntarily or by operation of law, without the prior written consent of the other party except for the related
parties.

 

		9.10		The parties agree that this Agreement will bind all the parties , its successors and
better assignee by these presents.

 

 

In Testimony Whereof we have hereto signed
this Document on October 27, 2015 accepted on October 27, 2015.

 

 

    -5-

     

    

 

Tianjin
Information Sea Information Technology Co., Ltd

 

 

Signature:/s/
Liu Zhixin

 

 

 

Name:
Ms. Liu Zhixin              

Position:
Legal representative

 

 

Shuhai Information
Technology Co., Ltd

 

Mr.
Liu Fu

 

Signature:
 /s/ Liu Fu                   

 

 

Mrs
Liu Zhixin

 

Signature:/s/
Liu Zhixin                

 

 

 

 

 

    -6-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}]]