Document:

Exhibit 10.12

 

LOAN AGREEMENT

  BETWEEN

  Zuyu DING

 Weijie MA

  AND

  SHANGHAI YI YUE INFORMATION TECHNOLOGY CO., LTD.

 

DATED SEPTEMBER 20, 2011

	
 
    

 

 

LOAN AGREEMENT

 

This LOAN AGREEMENT (“this Agreement”) is entered into on September 20, 2011 by:

 

1.              ZUYU DING

 

Identity Card Number:

 

2.              WEIJIE MA

 

Identity Card Number:

 

(ZUYU DING and WEIJIE MA are collectively referred to as the “Borrowers”)

 

3.              SHANGHAI YI YUE INFORMATION TECHNOLOGY CO., LTD. (the “Lender”)

 

Registered Address: Room 103, Building 1, No. 84, Lane 453, Hutai Road, Shanghai

 

(In this Agreement, the above parties are referred to individually as a “Party” and collectively the “Parties”.) WHEREAS:

 

1.              Shanghai Yi Xin E-Commerce Co., Ltd. (“Shanghai Yi Xin”) is a limited liability company duly incorporated and validly existing in Shanghai, China under the laws of the PRC, mainly operating the e-commerce business, of which the registered address is                                          and the registered capital is RMB15,000,000 (in words: fifteen million Yuan).

 

2.              The Lender intends to provide a loan to ZUYU DING and WEIJIE MA respectively for the purpose of establishing Shanghai Yi Xin and make the Borrowers become 100% equity interest holders of the Company.

 

In order to clarify the rights and obligations of the Lender and the Borrowers under

 

 

the above loan arrangement, the Parties hereby agree as follows:

 

ARTICLE ONE DEFINITIONS

 

1.1            Unless otherwise specified in this Agreement, the following terms used in this Agreement shall have the meanings prescribed thereto below.

 

“Loan” means the loan provided by the Lender to the Borrowers in the amount of RMB15,000,000 (in words: fifteen million Yuan) pursuant to Article 2.1, among which a loan in the amount of RMB10,500,000 (in words: ten million and five hundred thousand Yuan) is provided to ZUYU DING, and a loan in the amount of RMB4,500,000 (in words: four million and five hundred thousand Yuan) is provided to WEIJIE MA.

 

“Outstanding Amount” means the respective unpaid amount payable by the Borrowers under the Loan.

 

“PRC” means the People’s Republic of China, for the purpose of this Agreement, excluding Hong Kong, Macao, and Taiwan.

 

“Term” has the meaning prescribed in Article 4.1 hereof.

 

“Repayment Notice” has the meaning prescribed in Article 5.2 hereof.

 

“Repayment Request” has the meaning prescribed in Article 5.3 hereof.

 

“Confidential Information” has the meaning prescribed in Article 7.1 hereof.

 

“Available Rights” has the meaning prescribed in Article 10.5 hereof.

 

1.2            Any reference in this Agreement to the following terms shall be interpreted as the following meanings.

 

“Article” shall be interpreted as an article in this Agreement, unless otherwise specified in the context of this Agreement.

 

“Taxes” shall be interpreted to include any taxes, fees, duties, or other charges of the same nature (including but not limited to any penalties or interests related to any unpaid or overdue amount of such Taxes).

 

“Borrowers” or “Lender” shall be interpreted to include the successors and assignees of such Party.

 

1.3            Unless otherwise specified, any reference in this Agreement to this Agreement or any other agreement or document shall, as the case may be, be interpreted as the

 

 

reference to the amendments, modifications, replacements or supplements to this Agreement or such other agreement or document that are already made or may be made in the future from time to time.

 

ARTICLE TWO LOAN

 

2.1            Pursuant to the terms and conditions of this Agreement, the Lender agrees to provide the Loan to the borrowers. The Parties confirm that after the signing of this agreement, the Lender shall provide the Loan in the amount of RMB15,000,000 (in words: fifteen million Yuan), among which,

 

The Lender has provided a loan in the amount of RMB10,500,000 (in words: ten million and five hundred thousand Yuan) to ZUYU DING and a loan in the amount of RMB4,500,000 (in words: four million and five hundred thousandYuan) to WEIJIE MA.

 

The Borrowers cannot use the Loan under this Agreement unless for the purpose of establishing Shanghai Yi Xin and make the Borrowers become 100% equity interest holders of Shanghai Yi Xin.  Without the prior written consent of the Lender, the Borrowers cannot use any part of the Loan for any other purpose.

 

2.2            The Parties confirm that the Borrowers shall repay the Loan to the Lender in accordance with, and perform all of its other obligations under, this Agreement. Without the prior written consent of the Lender, the Borrowers cannot use any part of the Loan for any other purpose.

 

2.3            The Borrowers shall enter into an equity interest pledge agreement with the Lender in accordance with the requirements of the Lender, to pledge, in favor of the Lender, all of its equity interest in Shanghai Yi Xin, to secure the Borrowers’ performance of all of their obligations under this Agreement. The Borrowers shall also cooperate with the Lender to register the equity interest pledge agreement with the competent administration for industry and commerce.

 

ARTICLE THREE INTEREST

 

The Lender confirms that there shall be no interest accruing on the Loan.

 

ARTICLE FOUR TERM

 

4.1            The term of any part of the Loan under this Agreement shall commence on the date on which the Lender provides the Loan to the Borrowers and end on the earliest of (1) the twentieth (20th) anniversary of the signing date of this Agreement, (2) the expiration date of the business term of the Lender (including its business term as extended), and (3) the expiration date of the business term of Shanghai Yi Xin (including its business term as extended) (the “Term”).

 

 

ARTICLE FIVE REPAYMENT

 

5.1            On the expiration date of the Term, unless the Parties unanimously agree to extend the Term to the extent permitted by the applicable laws and regulations, the Borrowers shall fully repay the Outstanding Amount on a one-off basis. Under such circumstance, to the extent not in violation of the applicable laws and regulations, the Lender has the right to purchase, itself or by any designated third party, all of the equity interest in Shanghai Yi Xin held by the Borrowers at that time, the purchase price for which shall be equal to the Outstanding Amount.

 

5.2            During the Term, the Lender may, at any time, determine at its sole discretion to accelerate the repayment of the Loan and require any or both of the Borrowers to repay all or any part of the Outstanding Amount by a written notice to any of the Borrowers thirty (30) days in advance (the “Repayment Notice”).

 

If the Lender requires any of the Borrowers to repay any amount pursuant to the previous Paragraph, to the extent not in violation of the applicable laws and regulations, the Lender has the right to purchase, itself or by any designated third party, certain portion of the equity interest in Shanghai Yi Xin held by such Borrower, the purchase price for which shall be equal to that portion of the Outstanding Amount required to be repaid, and the percentage of the equity interest required to be sold against the equity interest in Shanghai Yi Xin held by such Borrower on the signing date of this Agreement shall be equal to the percentage of the Outstanding Amount required to be repaid against the total amount of the Loan borrowed by such Borrower under this Agreement.

 

5.3            To the extent the applicable laws and regulations allow the Lender to hold the equity interest in Shanghai Yi Xin, any of the Borrowers may, at any time, give a repayment request to the Lender thirty (30) days in advance to request to prepay all or any part of the Outstanding Amount (the “Repayment Request”).

 

Under such circumstance, to the extent not in violation of the applicable laws and regulations, the Lender has the right to purchase, itself or by any designated third party, certain portion of the equity interest in Shanghai Yi Xin held by the Borrower proposing the repayment, the purchase price for which shall be equal to that portion of the Outstanding Amount proposed to be repaid, provided that the percentage of the equity interest required to be sold against the equity interest in Shanghai Yi Xin held by such Borrower on the signing date of this Agreement shall be equal to the percentage of the Outstanding Amount proposed to be repaid against the total amount of the Loan borrowed by such Borrower under this Agreement.

 

5.4            The Borrower required or proposing to repay any amount shall repay the relevant Outstanding Amount in cash or in such other manner as approved by the Lender in writing in advance and permitted by the applicable laws and regulations.

 

 

5.5            When the Borrowers repay the Outstanding Amount pursuant to the above provisions of this Article 5, the Parties shall complete the equity interest transfer provided in this Article 5 at the same time to ensure that, at the same time when the Outstanding Amount is repaid, the Lender or any third party designated by the Lender has lawfully and fully accepted the relevant equity interest in Shanghai Yi Xin pursuant to the above provisions, and such equity interest is free and clear of any pledge or any other form of encumbrance. When the equity interest in Shanghai Yi Xin is to be transferred pursuant to the above provisions, the Borrowers shall provide all reasonable assistance and shall waive all of their rights of first refusal to purchase such equity interest.

 

5.6            After the Borrowers transfer all of their equity interest in Shanghai Yi Xin to the Lender or any third party designated by the Lender and repay all of the Outstanding Amount pursuant to the above provisions of this Article 5, the Borrowers have no obligations of repayment under this Agreement.

 

ATTICLE SIX TAXES

 

The Lender shall assume all of the Taxes related to the Loan.

 

ARTICLE SEVEN CONFIDENTIALITY

 

7.1            Irrespective of the termination of this Agreement, the Borrowers are obligated to keep confidential the trade secrets, proprietary information, clients’ information and all other information of confidential nature related to the Lender that are known to or received by the Borrowers as a result of the execution or performance of this Agreement (collectively the “Confidential Information”). The Borrowers shall not use such Confidential Information for any purpose other than for the performance of its obligations under this Agreement. Unless otherwise approved by the Lender in writing in advance or required by the relevant laws or regulations, the Borrowers shall not disclose any of the Confidential Information to any third party.

 

7.2            The Confidential Information does not include:

 

(a)    the information that has been lawfully acquired by the Party receiving the information before as evidenced by certain written evidence;

 

(b)    the information entering the public domain without attribution to any fault of the Party receiving the information; and

 

(c)     the information lawfully acquired by the Party receiving the information from other sources after being received by the Party.

 

 

7.3            After the termination of this Agreement, the Borrowers shall, as requested by the Lender, return, destroy, or otherwise dispose of all of the documents, datum, or software provided by the Lender that contain any Confidential Information, and stop using the Confidential Information.

 

7.4            Notwithstanding any other provision of this Agreement, the effect of this Article 7 shall not be affected by the suspension or termination of this Agreement.

 

ARTICLE EIGHT NOTICE

 

8.1            Any notice, request, demand or other correspondence required under or in accordance with this Agreement shall be delivered to the related Party in writing.

 

8.2            The above notice or other correspondence, shall be deemed to be delivered (i) upon being sent out if by facsimile or electric transmission, or (ii) upon handover in person if by hand delivery; or (iii) upon the fifth (5th) day of being posted if by mail.

 

ARTICLE NINE DEFAULT LIABILITIES

 

9.1            The Borrowers undertake to indemnify the Lender against any actions, charges, claims, costs, damage, demands, expenses, liabilities, losses or procedures suffered or incurred by the Lender due to any breach by the Borrowers of any of their obligations under this Agreement.

 

9.2            Notwithstanding any other provision of this Agreement, the effect of this Article shall not be affected by the suspension or termination of this Agreement.

 

ARTICLE TEN MISCELLANEOUS

 

10.1     This Agreement is written in Chinese in three (3) originals. Each of the Parties to this Agreement shall hold one (1) original.

 

10.2     The execution, effectiveness, performance, modification, interpretation and termination of this Agreement shall be governed by the laws of the PRC.

 

10.3     Any dispute arising out of or in connection with this Agreement shall be resolved by the Parties through consultation. In the event the Parties fail to agree with each other within thirty (30) days after the dispute arises, the dispute shall be submitted to China International Economic and Trade Arbitration Commission Shanghai Commission for arbitration in Shanghai in accordance with the arbitration rules thereof effective at the submission of the application for arbitration. The arbitration award shall be final and binding upon the Parties.

 

 

10.4     Any right, power or remedy granted to each of the Parties by any provision of this Agreement shall not preclude any other rights, powers or remedies that such Party is entitled to under the laws and under any other provisions of this Agreement, and any Party’s exercise of any of its rights, powers or remedies shall not preclude its exercise of any other rights, powers or remedies that it is entitled to.

 

10.5     A Party’s failure or delay in exercising any of its rights, powers or remedies that it is entitled to under this Agreement or under the laws (the “Available Rights”) shall not constitute its waiver of such rights, nor shall any single or partial waiver of any Available Rights by a Party preclude its exercise of those rights in another manner or its exercise of any other Available Rights.

 

10.6     The headings in this Agreement are written for the ease of reference only, and shall in no event be used for, or affect, the interpretation to this Agreement.

 

10.7     Each provision of this Agreement is severable and independent from any of the other provisions. If at any time any one or more provisions of this Agreement become invalid, illegal or unenforceable, the validity, legality and enforceability of the other provisions of this Agreement shall not be affected thereby.

 

10.8     This Agreement, upon signing, shall supersede any other legal documents executed by the Parties in respect  of the subject of this Agreement. Any amendment or supplement to this Agreement shall not come into effect unless made in writing and duly executed by the Parties.

 

10.9     Without the prior written consent of the Lender, the Borrowers shall not transfer any of their rights and/or obligations under this Agreement to any third party. The Lender has the right to transfer any of its rights under this Agreement to any third party upon the prior written notice to the other Parties.

 

[INTENTIONALLY LEFT BLANK BELOW]

 

 

[EXECUTION PAGE]

 

IN WITNESS WHEREOF, this LOAN AGREEMENT is executed by the following Parties on the date first written above.

 

	
ZUYU DING
    	
 
    
	
 
    	
 
    
	
Signature: 
    	
/s/ Zuyu DING
    	
 
    
	
 
    	
 
    
	
WEIJIE MA
    	
 
    
	
 
    	
 
    
	
Signature: 
    	
/s/ Weijie MA
    	
 
    
	
 
    	
 
    
	
SHANGHAI YI YUE INFORMATION TECHNOLOGY CO., LTD.
    
	
 
    	
 
    
	
(Seal)
    	
 
    
	
 
    	
 
    
	
Signature: 
    	
/seal/
    	
 
    
	
 
    	
 
    	
 
    
	
Name: 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:Exhibit 10.13

 

 

 

Zuyu DING

 

Weijie MA

 

Shanghai Yi Yue Information Technology Co., Ltd.  

 

AND

 

Shanghai Yi Xin E-Commerce Co., Ltd.

	
 
    	
 
    	
 
    

 

Shareholder Voting Right Proxy Agreement

In respect of Shanghai Yi Xin E-Commerce Co., Ltd.

	
 
    	
 
    	
 
    

 

December 5, 2011

 

 

 

 

Shareholder Voting Right Proxy Agreement

 

This Shareholder Voting Right Proxy Agreement (this “Agreement”) is entered into as of December 5, 2011 by and between the following Parties:

 

1.     Zuyu DING

 

ID Card No.:

 

2.     Weijie MA

 

ID Card No:

 

(Zuyu DING and Weijie MA are hereinafter referred to individually as a “Shareholder” and collectively as the “Shareholders”.)

 

3.     Shanghai Yi Yue Information Technology Co., Ltd. (hereinafter, the “WFOE”)

 

Registered address: Room 103, Building 1, No. 84, Lane 453, Hutai Road, Shanghai

 

4.     Shanghai Yi Xin E-Commerce Co., Ltd. (hereinafter, the “Company”)

 

Registered address:

 

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

 

WHEREAS:

 

1.     The Shareholders are the current shareholders of the Company, holding 100% equity interest of the Company.

 

2.    The Shareholders intend to severally entrust their voting rights in the Company to the individuals designated by the WFOE, and the WFOE intends to designate the individuals to accept such entrust.

 

NOW, THEREFORE, the Parties, after friendly consultations, hereby mutually agree below:

 

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Article 1 Voting Right Delegation

 

1.1  The Shareholders hereby irrevocably undertake to respectively sign a power of attorney in substance and form as set forth in Annex 1 hereof after the signing of this Agreement, to respectively entrust the individuals then designated by the WFOE (hereinafter, the “Entrusted Persons”) to exercise, on behalf of each of the Shareholders, the following rights that the Shareholders are entitled to in the capacity of shareholders of the Company under the then effective articles of association of the Company (collectively, the “Entrusted Rights”):

 

(1)   To propose to convene and attend Shareholders’ meetings of the Company as the representative of each of the Shareholders according to the articles of association of the Company;

 

(2)   To exercise, on behalf of each of the Shareholders, their voting rights on all matters requiring discussion or resolutions of the Shareholders’ meetings of the Company, including without limitation, the appointment and election of the Company’s directors and other senior management to be appointed and removed by the Shareholders;

 

(3)   To exercise other voting rights of the Shareholder as specified in the articles of association of the Company (including any other shareholder voting rights as specified in the amended articles of association).

 

The above authorization and entrustment are granted on the condition that the Entrusted Persons are PRC citizens and that the WFOE approves such authorization and entrustment. Upon and only upon written notice of dismissing and replacing the Entrusted Person(s) given by the WFOE to each of the Shareholders shall the Shareholder promptly entrust another PRC citizen then designated by the WFOE to exercise the above Entrusted Rights, and the new authorization and entrustment shall, upon the grant supersede the previous authorization and entrustment. The Shareholders shall not revoke the authorization and entrustment to the Entrusted Person(s) unless as provided in this Article.

 

1.2  The Entrusted Persons shall perform their obligations in respect of the entrustment hereunder to the extent authorized hereunder with due care and diligence and in compliance with laws. The Shareholders acknowledge and shall assume liabilities for any legal consequences arising as a result of the Entrusted Persons’ exercise of the foregoing Entrusted Rights.

 

1.3  The Shareholders hereby confirm that the Entrusted Persons are not required to seek opinions from the relevant Shareholder prior to their exercise of the foregoing Entrusted Rights. However, the Entrusted Persons shall inform the Shareholders in a timely manner of any resolution or proposal on convening an interim shareholders’ meeting after such resolution or proposal is made.

 

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Article 2 Right to Information

 

2.1  For the purpose of exercising the Entrusted Rights hereunder, the Entrusted Persons are entitled to know various relevant information of the Company such as those in respect of its operation, business, customers, finance and employees, and shall have access to the relevant documentations and materials of the Company. The Company shall fully cooperate with the Entrusted Persons in this regard.

 

Article 3 Exercise of the Entrusted Rights

 

3.1  The Shareholders will provide sufficient assistances to the Entrusted Persons with regard to their exercise of the Entrusted Rights, including timely execution where necessary of resolutions of shareholders’ meetings adopted by the Entrusted Persons or other pertinent legal documents (e.g., where the same is required in order to submit documents for purpose of governmental approvals, registrations or filings.).

 

3.2  If at any time within the term of this Agreement, the grant or exercise of the Entrusted Rights hereunder is unrealizable for whatever cause (except for default of any Shareholder or the Company), the Parties shall immediately seek the most similar alternative solution and, if necessary, enter into a supplementary agreement to amend or adjust the provisions herein, in order to ensure the realization of the purpose of this Agreement.

 

Article 4 Exemption and Compensation

 

4.1  The Parties acknowledge that in no case shall the WFOE be required to be liable to or compensate (monetary or otherwise) the other Parties or any third party in respect of exercise of the Entrusted Rights hereunder by the individuals designated by it.

 

4.2  The Shareholders and the Company agree to indemnify and hold the WFOE free from and harmless against all losses incurred or likely to be incurred due to exercise of the Entrusted Rights by the Entrusted Persons designated by the WFOE, including without limitation, any loss resulted from any litigation, demand, arbitration or claim by any third party against it or from administrative investigation or penalty, PROVIDED, HOWEVER, THAT no indemnification is available for any losses caused by a willful default or gross negligence of the Entrusted Persons.

 

Article 5 Representations and Warranties

 

5.1  Each Shareholder hereby represents and warrants severally that:

 

5.1.1.              It is a Chinese citizen with full capacity of action. It has the complete and

 

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independent legal status and legal capacity to execute, deliver and perform this Agreement. It may sue or be sued independently.

 

5.1.2. It has the full power and authority to execute and deliver this Agreement and all other documents relating to the transaction contemplated hereby that are to be executed by it; and the full power and authority to consummate the transaction contemplated hereby. This Agreement is duly executed and delivered by it. This Agreement shall constitute its legal and binding obligation and may be enforceable against it in accordance with the terms hereof.

 

5.1.3. It is the registered legal shareholder of the Company as of the effective date of this Agreement. Except for those rights created under this Agreement, the Equity Pledge Agreement and the Exclusive Call Option Agreement entered into by and between the Shareholders, the Company and the WFOE on the date hereof, the Entrusted Rights are free of any third-party right. Pursuant to this Agreement, the Entrusted Persons may exercise the Entrusted Rights fully and completely in accordance with the then effective articles of association of the Company.

 

5.2  Each of the WFOE and the Company hereby represents and warrants severally that:

 

5.2.1  It is a limited liability company duly registered and validly existing under the laws where it is registered and has the independent legal person status. It has the full and independent legal status and legal capacity to execute, deliver and perform this Agreement and may sue or be sued independently.

 

5.2.1  It has the full corporate power and authority to execute and deliver this Agreement and all other documents relating to the transaction contemplated hereby that are to be executed by it. It has the full power and authority to consummate the transaction contemplated hereby.

 

5.3  The Company further represents and warrants that:

 

5.3.1  Each Shareholder is the registered legal shareholder of the Company as of the effective date of this Agreement. Except for the rights under this Agreement, the Equity Pledge Agreement and the Exclusive Call Option Agreement entered into by and between the Shareholders, the Company and the WFOE on the date hereof, the Entrusted Rights are free of any third-party right. Pursuant to this Agreement, the Entrusted Persons may exercise the Entrusted Rights fully and completely in accordance with the then effective articles of association of the Company.

 

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Article 6 Term of this Agreement

 

6.1  Subject to the provisions of Articles 6.2 and 6.3 hereof, the term of this Agreement shall be twenty (20) years, unless it is early terminated by the Parties in writing or pursuant to Article 9.1 hereof. The term of this Agreement will not be extended upon expiration; provided, however, that the term of this Agreement will be automatically extended for one (1) year upon the expiration, if the WFOE gives the other Parties written notice requiring the extension thereof, and the same mechanism will apply subsequently upon the expiration of each extended term.

 

6.2  This Agreement shall terminate, if the Company or the WFOE, upon expiry of its business term, fails to deal with the approval and registration for the extension thereof.

 

6.3  If any Shareholder transfers all of the equity interest it holds in the Company to any person with the WFOE’s prior consent, the Shareholder will no longer be a Party hereto and the obligations and undertakings of any other Parties hereunder will not be adversely affected.

 

Article 7 Notices

 

7.1  Any notice, request, demand and other correspondences required by this Agreement or made in accordance with this Agreement shall be delivered in writing to the relevant Party(ies).

 

7.2  The above notices or other correspondence shall be deemed delivered (i) upon being sent out if by facsimile or electric transmission, or (ii) upon handover in person if by hand delivery; or (iii) upon the fifth (5th) day of being posted if by mail.

 

Article 8 Confidentiality

 

8.1  Regardless of the termination of this Agreement, each Party is obligated to keep strictly confidential trade secrets, proprietary information, clients’ information and all other information of confidential nature related to the other Parties that are known to the former Party during the course of its execution and performance of this Agreement (the “Confidential Information”). Unless as agreed to by the Party who disclosed the Confidential Information (the “Disclosing Party”) in writing in advance, or as required by the relevant laws, regulations or the requirements applicable where the publicly listed affiliated company of any Party is located, the receiving party of the Confidential Information (the “Receiving Party”) shall not disclose to any third party any of such Confidential Information. Except for the purpose of performing this Agreement, the Receiving Party shall not use any Confidential Information.

 

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8.2  The Confidential Information does not include:

 

(a)   the information that has been lawfully acquired by the Party receiving the information before as evidenced by certain written evidence;

 

(b)   the information entering the public domain without attribution to any fault of the Party receiving the information; and

 

(c)   the information lawfully acquired by the Party receiving the information from other sources after being received by the Party.

 

8.3  The Receiving Party may, for the purpose of performing this Agreement, disclose Confidential Information to its relevant employees, agents or professionals engaged by it, provided, however, the Receiving Party shall ensure that such persons shall abide by the relevant terms and conditions of this Article 8, and shall assume any liability incurred as a result of the breach by any of such persons of the relevant terms and conditions of this Article 8.

 

8.4  Notwithstanding any other provision of this Agreement, the effect of this Article 8 shall not be affected by the termination of this Agreement.

 

Article 9 Liabilities for Breach

 

9.1  The Parties agree and confirm that, if any of the Parties (the “Breaching Party”) is materially in breach of any provision hereof, or materially fails or delays in performing any of the obligations hereunder, a breach hereof is constituted (a “Breach”), and any of the other Parties which does not commit any Breach (a “Non-breaching Party”) has the right to require that the Breaching Party rectify it or take a remedial action within a reasonable period. If the Breaching Party fails to rectify the Breach or take remedial actions within the reasonable period or within ten (10) days of the other Party’s written rectification notice, then:

 

9.1.1. if any Shareholder or the Company is the Breaching Party, the WFOE is entitled to terminate this Agreement and require the Breaching Party to indemnify it against its damage;

 

9.1.2. if the WFOE is the Breaching Party, each of the Non-defaulting Parties is entitled to require the Breaching Party to indemnify it against its damage; but unless otherwise provided for by law, in no case does it have the right to terminate or cancel this Agreement.

 

9.2  Notwithstanding any other provision herein, the effect of this Article 9 shall not be affected by the suspension or termination of this Agreement.

 

Article 10 Miscellaneous

 

10.1        This Agreement is written in Chinese in four (4) originals. Each of the Parties to

 

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this Agreement shall hold one (1) original.

 

10.2 The execution, effectiveness, performance, revision, interpretation and termination of this Agreement shall be governed by laws of People Republic of China.

 

10.3 Any dispute arising out of or in connection with this Agreement shall be resolved by the Parties through consultation. In the event the Parties fail to agree with each other within thirty (30) days after the dispute arises, the dispute shall be submitted to China International Economic and Trade Arbitration Commission Shanghai Commission for arbitration in Shanghai in accordance with the arbitration rules thereof effective at the submission of the application for arbitration. The arbitration award shall be final and binding upon the Parties.

 

10.4 None of the rights, powers or remedies granted to each of the Parties by any provision of this Agreement shall preclude any other rights, powers or remedies that such Party is entitled to under the laws and under any other provisions of this Agreement, and any Party’s exercise of any of its rights, powers or remedies shall not preclude its exercise of any other rights, powers or remedies that it is entitled to.

 

10.5 A Party’s failure or delay in exercising any of its rights, powers or remedies that it is entitled to under this Agreement or under the laws (the “Available Rights”) shall not constitute its waiver of such rights, nor shall any single or partial waiver of any Available Rights by a Party preclude its exercise of those rights in another manner or its exercise of any other Available Rights.

 

10.6 The headings in this Agreement are written for the ease of reference only, and in no event, shall be used for, or affect, the interpretation to this Agreement.

 

10.7 Each provision herein is separable and independent from all other provisions herein. If any one provision or more provisions of this Agreement become invalid, illegal or unenforceable at any time, the validity, legality and enforceability of other provisions herein shall not be affected.

 

10.8 This Agreement, after signing, shall supersede any other prior legal documents among the Parties with respect to the subject matter hereof. Any amendment or supplement hereto shall be made in writing and shall not become effective until its due execution by the Parties hereto.

 

10.9 Without the WFOE’s prior written consent, none of the other Parties may transfer any of its rights and/or obligations hereunder to any third party. The Shareholders and the Company hereby agree that the WFOE is entitled to transfer any of its rights and/or obligations hereunder to any third party upon written notice thereof to the Shareholders and the Company.

 

10.10 This Agreement shall be binding on the legal successors of the Parties.

 

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[SIGNATURE PAGE]

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

 

	
Zuyu DING
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Zuyu DING
    	
 
    
	
 
    	
 
    	
 
    
	
Weijie MA
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Weijie MA
    	
 
    
	
 
    	
 
    	
 
    
	
Shanghai Yi Yue Information Technology Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    
	
(Company   seal)
    	
 
    
	
 
    	
 
    
	
By: 
    	
/seal/
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
Title:
    	
 
    
	
 
    	
 
    
	
Shanghai Yi Xin E-Commerce Co., Ltd.
    	
 
    
	
 
    	
 
    
	
(Company   seal)
    	
 
    
	
 
    	
 
    
	
By: 
    	
/seal/
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
Title:
    	
 
    

 

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Annex 1:

 

Power of Attorney

 

THIS POWER OF ATTORNEY (hereinafter, the “Power of Attorney”) is executed by Zuyu DING (Domicile [*], ID card No.: [*]) as of [*], 2011 and issued to Xin ZHOU (Domicile [*], ID card No.: [*]) (hereinafter, the “Entrusted Person”).

 

I, Zuyu DING, hereby entrust the Entrusted Person with full representative power to exercise the following rights owned by me in the capacity of a shareholder of Shanghai Yi Xin E-Commerce Co., Ltd. (hereinafter, the “Company”) on my behalf:

 

(1)   As my representative, to propose to convene and attend Shareholders’ meetings of the Company according to the articles of association of the Company;

 

(2)   As my representative, to exercise, on behalf of each of the Shareholders, their voting rights on all matters requiring discussion or resolutions of the Shareholders’ meetings of the Company, including without limitation, the appointment and election of the Company’s directors and other officers to be appointed and removed by the Shareholders;

 

(3)   As my representative, to exercise other voting rights of a shareholder as specified in the articles of association of the Company (including any other shareholder voting rights as specified in the amended articles of association).

 

I hereby irrevocably confirm that this Power of Attorney shall continue to be valid unless and until the Shareholder Voting Right Proxy Agreement executed by and between Shanghai Yi Yue Information Technology Co., Ltd. (hereinafter, the “WFOE”), the Company and the Shareholders of the Company as of [*], 2011 expires or is early terminated, unless the WFOE gives me a direction to replace the Entrusted Person.

 

	
Authorization is hereby made.
    	
 
    
	
 
    	
 
    
	
 
    	
Name: Zuyu DING
    
	
 
    	
 
    
	
 
    	
Signature: 
    	
 
    
	
 
    	
 
    
	
 
    	
Date: [*], 2011
    

 

9

 

Power of Attorney

 

THIS POWER OF ATTORNEY (hereinafter, the “Power of Attorney”) is executed by Weijie MA (Domicile [*], ID card No.: [*]) as of [*], 2011 and issued to Xin ZHOU (Domicile [*], ID card No.: [*]) (hereinafter, the “Entrusted Person”).

 

I, Weijie MA, hereby entrust the Entrusted Person with full representative power to exercise the following rights owned by me in the capacity of a shareholder of Shanghai Yi Xin E-Commerce Co., Ltd. (hereinafter, the “Company”) on my behalf:

 

(1)     As my representative, to propose to convene and attend Shareholders’ meetings of the Company according to the articles of association of the Company;

 

(2)     As my representative, to exercise, on behalf of each of the Shareholders, their voting rights on all matters requiring discussion or resolutions of the Shareholders’ meetings of the Company, including without limitation, the appointment and election of the Company’s directors and other officers to be appointed and removed by the Shareholders;

 

(3)     As my representative, to exercise other voting rights of a shareholder as specified in the articles of association of the Company (including any other shareholder voting rights as specified in the amended articles of association).

 

I hereby irrevocably confirm that this Power of Attorney shall continue to be valid unless and until the Shareholder Voting Right Proxy Agreement executed by and between Shanghai Yi Yue Information Technology Co., Ltd. (hereinafter, the “WFOE”), the Company and the Shareholders of the Company as of [*], 2011 expires or is early terminated, unless the WFOE gives me a direction to replace the Entrusted Person.

 

	
Authorization is hereby made.
    	
 
    
	
 
    	
 
    
	
 
    	
Name: 
    	
Weijie MA
    
	
 
    	
Signature: 
    	
 
    
	
 
    	
Date: [*], 2011
    
				

 

10

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