Document:

Exhibit 10.17

 

YAO FANG INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD.

 

And

 

GUANGDONG YIHAO PHARMACEUTICAL CHAIN CO., LTD.

 

Regarding

 

SHANGHAI YAOWANG E-COMMERCE CO., LTD.

 

Exclusive Option Agreement

 

September 5, 2013

 

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This Exclusive Option Agreement (“Agreement”) was made and entered into on September 5, 2013 by and among the following parties in Shanghai, the People’s Republic of China (“China”):

 

YAO FANG INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD., a wholly foreign owned enterprise duly organized and existing under the laws of China, with its legal address at Room 805, Suite B, No.1 Building, No.977, Shangfeng Road, Tang Town, Pudong New Area, Shanghai, China (“Party A”); and

 

GUANGDONG YIHAO PHARMACEUTICAL CHAIN CO., LTD. a limited liability company duly organized and existing under the laws of China with its legal address at 2/F, No.1 Gonghe Road (West), Yuexiu District, Guangzhou, China (“Party B”).(Party A and Party B are hereinafter collectively referred to as “Parties” and individually as “Party”.)

 

WHEREAS:

 

(1)                         Party A is a wholly foreign owned enterprise duly established and validly existing under the laws of China, and has its independent legal personality;

 

(2)                         Party B is a limited liability company duly organized and existing under the laws of China and holds 100% equity in SHANGHAI YAOWANG E-COMMERCE CO., LTD. (“Operating Company”);

 

(3)                         On the same date of this Agreement, Party A and the Operating Company entered into an Exclusive Support Services Agreement, whereby Party A shall provide the exclusive support service to the Operating Company and the Operating Company shall pay the service fee and perform other obligations to Party A;

 

(4)                         On the same date of this Agreement, the Parties entered into an Equity Pledge Agreement, whereby Party B shall pledge their entire equity in the Operating Company for the benefits of Party A to secure the Operating Company’s performance of its obligations under the Exclusive Support Services Agreement;

 

(5)                         The Parties further agree that Party A has the right to purchase the entire equity in the Operating Company held by Party B.

 

NOW, THEREFORE, in the consideration of the premises mentioned above and the undertakings and covenants of both Parties herein, the Parties hereby agree as follows:

 

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ARTICLE 1 EXCLUSIVE RIGHT

 

1. Grant of Right

 

Party B hereby irrevocably grants to Party A or a third party considered as appropriate by Party A at its own discretion an exclusive right, namely:

 

a.              Party A or its designated third party has the right to purchase all or part of the equity in the Operating Company held by Party B at any time, to the extent permitted by the laws and regulations of China.

 

b.              Party A has the right (but is not obliged) to purchase or designate a third party to purchase all or part of the equity in the Operating Company held by Party B.

 

c.               Without Party A’s prior written consent, Party B may not transfer any part of their equity in the Operating Company by whatever means directly or indirectly to any third party.

 

2. Exercise of the Exclusive Right

 

a.              To the extent permitted by the laws and regulations of China, Party A may exercise its right to purchase the equity at any time by giving a written notice to Party B specifying the percentage of equity to be purchased.

 

b.              The ways in which Party A may choose to exercise the right to purchase the equity include but are not limited to:

 

(i)                                     Enforce the pledge in accordance with the provisions of the Equity Pledge Agreement; and

 

(ii)                                  Purchase the equity of the Operating Company without consideration or at the minimum consideration to the extent permitted by the laws and regulations of China.

 

c.               If the laws of China at that time permit Party A or any third party designated by Party A to hold the entire equity in the Operating Company, Party A may choose to exercise its exclusive rights to purchase the entire equity in the Operating Company at one time, and thus either Party A or the third party designated by Party A may acquire the entire equity in the Operating Company from Party B at one time; If the laws of China at that time permit Party A or any third party designated by Party A to hold a part of equity in the Operating Company, Party A may determine the percentage of equity to be acquired to the maximum extent permitted by the laws of China, and thus either Party A or the third party designated by Party A may acquire such percentage of equity in the Operating Company from Party B. In the latter case, Party A may exercise its exclusive right to purchase the equity in the Operating Company in installments to the gradually

 

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increased percentage permitted by the laws of China, so that it may eventually acquire the entire equity in the Operating Company.

 

d. Party B undertake and warrant that upon issuance of the exercise notice by Party A:

 

(i)                                     It shall immediately convene a shareholders’ meeting, pass the resolutions of the shareholders’ meeting and take all other necessary actions, approving the transfer of the entire equity to Party A or its designated third party;

 

(ii)                                  It shall immediately sign an equity transfer agreement with Party A or its designated third party to transfer the entire equity to Party A or its designated third party; and

 

(iii)                               It shall provide Party A with necessary support (including delivering and executing all relevant legal documents, going through all procedures for government approvals and registrations and performing all related obligations) according to Party A’s requirements and the applicable laws and regulations, so that Party A or its designated third party may acquire the entire equity without legal defect.

 

f.                For the avoidance of doubt, each of Party B hereby unconditionally and irrevocably confirms that, after his death, it will gift all the equity in the Operating Company it holds at that time to Party A, and that no person (including Party B’s parents, spouse, children or any other relatives) other than Party A and its designated third party shall have the ownership, title or any other interest in such equity.

 

ARTICLE 2 REPRESENTATIONS AND WARRANTIES

 

1.              On the date of this Agreement, Party A represents and warrants to Party B that:

 

a.              Party A is a wholly foreign owned enterprise duly established under the laws of China;

 

b.              Party A has obtained all the necessary and appropriate licenses and authorizations for executing and performing this Agreement.  Its execution and performance of this Agreement are consistent with Party A’s business scope, its articles of association and other corporate documents; and

 

c.               Party A’s execution and performance of this Agreement will not violate any laws, regulations, government permits, government notices or other government documents that bind or affect it, or breach any of

 

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agreements signed by it with any third party.

 

2.              On the date of this Agreement, Party B represents and warrants that:

 

a.              Party B and the Operating Company is respectively a limited liability company duly established and existing under the laws of China;

 

b.              Party B has obtained all the necessary and appropriate licenses and authorizations for executing and performing this Agreement;

 

c.               Party B’s execution and performance of this Agreement will not violate any laws, regulations, government permits, government notices or other government documents that bind or affect it, or breach any of agreements signed by it with any third party;

 

d.              Party B is the legal owner of entire equity in the Operating Company and has the right to dispose of such equity or any part thereof, and there is no dispute over the pledged equity. Except for the Equity Pledge Agreement signed by the Parties on the same date of this Agreement, Party B has not and will not create any mortgage, pledge or other security upon the equity in the operating company for the benefits of any third party;

 

e.               There is no pending or threatening dispute, lawsuit, arbitration, administrative dispute or other legal dispute with respect to Party B or Party B’s equity in the Operating Company;

 

f.                The Operating Company has obtained all government approvals, permits, licenses, registrations and filings necessary to operate and own its assets within its business scope; and

 

g.               There is no pending or threatening dispute, lawsuit, arbitration, administrative dispute or other legal dispute with respect to the Operating Company.

 

ARTICLE 3 PARTY B’S SPECIAL REPRESENTATIONS AND WARRANTIES

 

1.              As the shareholder of the Operating Company, Party B warrants that the Operating Company will:

 

a.              Without Party A’s prior written consent, not supplement or amend its articles of association in whatever forms, or increase or decrease its registered capital or change its capital structure by whatever means;

 

b.              Carefully and effectively maintain the operations of the Operating Company based on good financial and business standards;

 

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c.               Without Party A’s prior written consent, not transfer, pledge or otherwise dispose of the lawful rights and interests in its assets or income, or create encumbrance upon the security interest in its assets or income at any time;

 

d.              Not create, inherit, guarantee or permit to exist any debt, unless such debt is generated from the normal operations of the Operating Company or has been accepted or recognized by Party A in advance;

 

e.               Without Party A’s prior written consent, not enter into any material contract;

 

f.                Without Party A’s prior written consent, not provide any loan or guarantee to any third party;

 

g.               Upon request of Party A, provide Party A with all information about the business and financial conditions of the Operating Company;

 

h.              Purchase insurance from an insurer accepted by Party A, with the amount and coverage of insurance same as the insurance taken by other companies that are operating similar business and owning similar assets at the place of the Operating Company;

 

i.                  Without Party A’s prior written consent, not merge with any third party, purchase any third party or invest in any third party;

 

j.                 Immediately notify Party A of any litigation, arbitration or administrative dispute over the Operating Company’s assets, business or income that occurs or would occur; and

 

k.              Without Party A’s prior written consent, not distribute dividends to its shareholders in any form.

 

2.              Party B warrants that it shall:

 

a.              Except for the provisions of this Agreement and the Equity Pledge Agreement, without Party A’s prior written consent, not transfer, pledge or otherwise dispose of their equity in the Operating Company at any time;

 

b.              Without Party A’s prior written consent, not cause its directors to approve that the Operating Company will merge with any third party, purchase any third party or invest in any third party, or make any resolution or thing in violation of the undertakings made by Party B to Party A herein;

 

c.               Immediately notify Party A of any litigation, arbitration or administrative

 

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dispute over their equity in the Operating Company that occurs or would occur;

 

d.              Without Party A’s prior written consent, not engage in any action or omission that would have a material effect on the assets, business or liabilities of the Operating Company;

 

e.               Upon Party A’s request, appoint Party A’s designated individuals as the directors of the Operating Company;

 

f.                To the extent permitted by the laws of China and upon request of Party A at any time, immediately and unconditionally transfer all their equity in the Operating Company to Party A or its designated third party;

 

g.               To the extent permitted by the laws of China and upon request of Party A at any time, make best efforts to cause other shareholders of the Operating Company (if any) to immediately and unconditionally transfer all their equity in the Operating Company to Party A or its designated third party, and waive their preemptive right in respect of such transfer;

 

h.              For the purpose of this Agreement, Party B will make its best efforts to take actions and execute documents as Party A reasonably deems necessary;

 

i.                  Party B hereby expressly waives any rights (including but not limited to any relevant right of subrogation or prior consent) that they may have under the laws of China and would affect Party A’s interests hereunder; and

 

j.                 Strictly comply with this Agreement, the Equity Pledge Agreement and the Exclusive Support Services Agreement, effectively perform their obligations hereunder and thereunder, and not engage in any action or omission that would affect the validity or enforceability of such agreements; when Party A exercises its rights hereunder, it shall be responsible for assisting with the procedures for the registration of changes related to equity transfer.

 

ARTICLE 4 TAXES AND COSTS

 

Each Party shall pay all costs that shall be borne by it/they in accordance with the applicable laws of China, including but not limited to the transfer and registration costs incurred from preparing and executing this Agreement and completing the transactions contemplated herein.

 

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ARTICLE 5 NOTICE

 

All notices in relation to this Agreement shall be sent to the following address by personal delivery, registered mail or fax, unless a written notice has been given to change the following address. If sent by registered mail, it shall be deemed as duly served on the date indicated in the return receipt of the registered mail; if by personal delivery, on the date of delivery; if by fax, on the date indicated in the transmission confirmation of the fax, provided that the original copy of the notice is sent to the following address by personal delivery or registered mail immediately after the fax is transmitted.

 

Party A:

 

Address: No.10 Building, No.114, Lane 572, Bibo Road, Pudong New Area, Shanghai

Zip Code: 201203

Attention: Hua CHEN

Tel.: 021-58381172

Fax: 021-58381091

 

Party B:

 

Address: No.10 Building, No.114, Lane 572, Bibo Road, Pudong New Area, Shanghai

Zip Code: 201203

Attention: Hua CHEN

Tel.: 021-58381172

Fax: 021-58381091

 

ARTICLE 6 GOVERNING LAW AND DISPUTE SETTLEMENT

 

1.              The validity, construction, performance as well as dispute settlement of or in connection with this Agreement shall be governed by the applicable laws of the People’s Republic of China.

 

2.              The Parties agree and confirm that if either of Party B (“Breaching Party”) materially violates any covenant made herein or materially fails to perform any obligation hereunder, it shall constitute a breach hereunder, and Party A may request the Breaching Party to make correction or

 

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remedy within a reasonable period. If the Breaching Party fails to make correction or remedy within the reasonable period or 10 days upon receipt of the written notice from Party A requesting the remedy, Party A may at its sole discretion choose one or several of the following remedies: (1) terminate this Agreement and demand the Breaching Party to fully indemnify Party A against all damages; (2) enforce the obligations of the Breaching Party hereunder and demand the Breaching Party to fully indemnify Party A against all damages; or (3) dispose of the pledged equity at a discounted price or by auction or sale according to the provisions of the Equity Pledge Agreement, get payment in priority from the proceeds thereof and demand the Breaching Party to pay all damages arising therefrom.

 

3.              Any dispute arising from the performance of this Agreement or in connection with this Agreement shall be settled by the Parties through friendly negotiation. If no settlement can be reached through negotiation within 30 days, any Party may submit the dispute to Shanghai International Economic and Trade Arbitration Commission for arbitration in accordance with its then effective arbitration rules. For the avoidance of doubt, each Party may appoint an arbitrator and the both Parties irrevocably appoint and authorize the Chairman of the Arbitration Commission to appoint the third arbitrator. The arbitration tribunal shall be composed of these three arbitrators. All arbitration proceeding shall be conducted in Chinese language. The arbitral award shall be final and binding upon the Parties.

 

4.              During the settlement of a dispute, each Party shall continue to perform the provisions hereof, except for those involved in the dispute.

 

ARTICLE 7 MISCELLANEOUS

 

1.              This Agreement shall become effective when it is duly signed or sealed by the Parties. The term of this Agreement is same as the term of the Exclusive Support Services Agreement.

 

2.              This Agreement shall be read and understood in conjunction with the Equity Pledge Agreement and the Exclusive Support Services Agreement.  If there is any ambiguity, it shall be interpreted with reference to the provisions and purposes of the Equity Pledge Agreement and the Exclusive Support Services Agreement.

 

4.              Any amendment or supplement to this Agreement shall not become effective unless the same is signed by the Parties in writing.

 

5.              Invalidation of any part of this Agreement will not affect the validity of the remaining parts hereof.

 

6.              This Agreement shall be made and executed in three originals and written in Chinese, one for each Party and each being of equal legal effect. The

 

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Parties may make and execute several counterparts of this Agreement as needed.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK; THE SIGNATURE PAGE IS ATTACHED HEREINBELOW]

 

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IN WITNESS WHEREOF, the Parties have executed or have caused their respective duly authorized representatives to execute this Exclusive Option Agreement on the date indicated first above.

 

	
YAO FANG INFORMATION TECHNOLOGY (SHANGHAI)   CO., LTD.
    
	
 
    	
 
    
	
Signature: 
    	
/s/ Hua CHEN
    	
 
    
	
Name: Hua CHEN
    	
 
    
	
Title: Legal Representative
    	
 
    
	
Seal: /s/ Company seal
    	
 
    
	
 
    	
 
    
	
GUANGDONG YIHAO   PHARMACEUTICAL CHAIN CO., LTD.
    	
 
    
	
 
    	
 
    
	
Signature: 
    	
/s/ Hua CHEN
    	
 
    
	
Name: Hua CHEN
    	
 
    
	
Title: Legal   Representative
    	
 
    
	
Common Seal: /s/   Seal of Guangdong Yihao Pharmaceutical Chain Co., Ltd.
    	
 
    

 

11Exhibit 10.18

 

Equity Pledge Agreement

 

Regarding

 

SHANGHAI YAOWANG E-COMMERCE CO., LTD.

 

by and between

 

YAO FANG INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD.

 

And

 

GUANGDONG YIHAO PHARMACEUTICAL CHAIN CO., LTD.

 

Date: September 5, 2013

 

 

This Equity Pledge Agreement (this “Agreement”) is made in Shanghai, the People’s Republic of China (“PRC”) as of September 5, 2013 by and between:

 

YAO FANG INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD., a wholly foreign-owned enterprise organized and existing under the laws of the PRC with its legal address at Room 805, Suite B, No.1 Building, No.977, Shangfeng Road, Tang Town, Pudong New Area, Shanghai, China (“Party A”); and

 

GUANGDONG YIHAO PHARMACEUTICAL CHAIN CO., LTD., a limited liability company organized and existing under the laws of the PRC with its legal address at 2/F, No.1 Gonghexi Road, Yuexiu District, Guangzhou, China (“Party B”).

 

(Party A and Party B herein collectively referred to as the “Parties”, and individually referred to as the “Party” or “each Party”).

 

WHEREAS:

 

(1)             Party A is a wholly foreign-owned enterprise duly organized and validly existing under the laws of the PRC with independent legal personality;

 

(2)             Party B is a limited liability company organized and existing under the laws of the PRC, Party B holds 100% of the shares of SHANGHAI YAOWANG E-COMMENCE CO., LTD. (“Operating Company”);

 

(3)             Prior to the signature date of this Agreement, Party A and the Operating Company have entered into the Exclusive Support Services Agreement, pursuant to which Party A will provide the Operating Company with exclusive support services, and the Operating Company will pay service fees to Party A and perform other obligations;

 

(4)             Prior to the signature date of this Agreement, Party A and Party B have entered into the Exclusive Option Agreement, pursuant to which Party B grants Party A or any third party deems appropriate by Party A an irrevocable and exclusive right to purchase all or part of the shares held by Party B in the Operating Company;

 

(5)             Prior to the signature date of this Agreement, Party A and Party B have entered into the Proxy Agreement , pursuant to which Party B entrusts and authorizes Party A to exercise, on its behalf, its voting right of shareholders, managerial power and other rights held by it in the Operating Company; and

 

(6)             Party B agrees to pledge all of the shares held by it in the Operating Company to Party A as security for the performance of the obligations of the Operating Company under the Exclusive Support Services Agreement, and the obligations of Party B under the Exclusive Option Agreement and the Proxy Agreement  (collectively referred to as “Contractual Obligations”), and discharge of the debts, liabilities and monetary obligations and other sums of whatever kind payable or owed by the Operating Company and by Party B to Party A from time to time (collectively referred to as “Secured Debts”).

 

THEREFORE, in consideration of the aforesaid premises and the commitments and agreements contained herein, it is agreed as follows:

 

I                       Pledge of shares

 

1.                  Party B agrees to pledge all of the shares held by it in the Operating Company, including any shares acquired by Party B in the Operating Company at present or any time in the future, and all the derivative interests owned by Party B at present or in the future in connection with the shares held by it in the Operating Company (collectively referred to as “Pledged

 

 

Shares”), to Party A as security for the performance of the Contractual Obligations and discharge of the Secured Debts by the Operating Company and by Party B. For the avoidance of doubt, the Parties acknowledge that the amount of the Secured Debts is RMB 1.0 million as of the signature date of this Agreement, in the meanwhile, the Secured Debts shall also include other Secured Debts, if any, owed by the Operating Company and by Party B to Party A from time to time after the signature date of this Agreement.

 

2.                  Without the prior written consent of Party A, Party B shall not transfer the Pledged Shares to any other party, nor distribute any dividend or bonus in respect of the Pledged Shares. All such dividends and bonuses received by Party B with the prior written consent of Party A shall be deposited in the account designated by Party A, subject to the supervision of Party A and included in the collateral hereunder.

 

3.                  On the signature date of this Agreement, Party B shall cause the Operating Company to enter conditions of the share pledge herein in the register of shareholders of the Operating Company. This Agreement shall take effect on the date that the share pledge is entered in the register of shareholders of the Operating Company. Party B shall cause the Operating Company to place its register of shareholders as updated in the custody of Party A.

 

4.                  Within five business days upon the execution date of this Agreement, the Parties shall jointly apply for the registration of the share pledge herein with the administration for industry and commerce in the place of incorporation of the Operating Company. Such pledge shall be effectively created on the date of completion of the registration procedures with the administration for industry and commerce. Party B shall cause the Operating Company to provide necessary assistance therein. Party B shall place the registration certificates of share pledge, such as notice of registration of share pledge, in the custody of Party A.

 

II                  Representations and warranties of Party B

 

1.                  Except for the pledge hereunder, Party B has not created and will not create any other pledge or right limitation over the Pledged Shares.

 

2.                  Without the prior written consent of Party A, Party B shall not transfer the Pledged Shares.

 

3.                  In case of any event that would affect the pledge held by Party A hereunder or the obligations of Party B and the Operating Company under this Agreement, the Exclusive Support Services Agreement, the Exclusive Option Agreement or the Proxy Agreement , as the case may be, Party B shall immediately notify Party A. Party B shall not engage in or permit any act that may have an adverse effect on the obligations of Party B and the Operating Company under this Agreement, the Exclusive Support Services Agreement, the Exclusive Option Agreement or the Proxy Agreement .

 

4.                  Without the prior written consent of Party A, Party B shall not engage in any act that may affect the status of its assets, including without limitation any borrowing, guarantee or acquisition or disposal of any material assets.

 

5.                  Party B warrants that the pledge held by Party A hereunder will be free from any interference or damage by Party B, its successors, representatives or any other third party.

 

6.                  For the effectuate of the purpose of this Agreement, Party B shall take the actions reasonably considered necessary by Party A with might and main, including registration of the share pledge herein, and execute the documents that Party A is deemed as necessary.

 

7.                  Party B hereby expressly waive any right may available to it under the laws of the PRC that may affect the pledge held by Party A hereunder, including without limitation any related preemptive right, right of subrogation and right of prior consent.

 

 

8.                  Party B legally owns the Pledged Shares and has the right to pledge, transfer or otherwise dispose of the Pledged Shares or any portion thereof. The Pledged Shares are free from any dispute over ownership as of the signature date of this Agreement.

 

9.                  Party B undertakes to comply with and perform all the guarantees, commitments, agreements, representations and terms contained herein. In the event of any default or failure to perform any part of this Agreement on the part of Party B, Party A shall have the right to file an indemnity to Party B for its losses arising therefrom.

 

III             Enforcement of pledge

 

1.                  The Parties agree that during the term of pledge, where Party B or the Operating Company breaches any obligation under this Agreement, the Exclusive Support Services Agreement, the Exclusive Option Agreement or the Proxy Agreement, as a result of which Party A suffers any loss or damage or incurs any expenses, Party A shall have the right to discount, auction or sell off the Pledged Shares, whether or not at reduced prices, pursuant to the provisions hereof and use the proceeds therefrom to make up for its losses in priority.

 

2.                  Where Party A enforces its pledge pursuant to the provisions of Paragraph 1 above, Party B shall not interpose any obstacle, and shall provide active cooperation for Party A, to ensure successful enforcement of the pledge by Party A.

 

3.                  Party A shall send a written notice to Party B five business days prior to the enforcement of the pledge hereunder.

 

4.                  Any reasonable expenses actually incurred by Party A in the exercise of all or any of its rights and powers as described above shall be borne by Party B, Party A is entitled to deduct such expenses according to the actual amount from the payment obtained from aforesaid exercise.

 

5.                  Party A shall have the right to, at its option, exercise any remedies against default available to it concurrently or successively. Party A shall not be required to exercise other remedy against default prior to exercise the right to discount, auction or sell off the Pledged Shares, whether or not at reduced prices, pursuant to the provisions hereof.

 

IV              Assignment of rights and obligations

 

1.                  Without the prior consent of Party A, Party B has no right to assign its rights and obligations hereunder.

 

2.                  Party A shall have the right to assign all or part of its rights and obligations hereunder to any third party at any time, in which case such third party shall be deemed as a party hereto, enjoy the rights and perform the obligations of Party A hereunder. Party B shall execute such agreements and/ documents relating to such assignment as Party A may request.

 

V                   Effectiveness and term of agreement

 

1.                  This Agreement shall take effect when it is signed or sealed by the Parties and the share pledge herein is entered in the register of shareholders of the Operating Company.

 

2.                  The share pledge contemplated herein shall be a continuing security which shall remain in full force and effect until full performance of the obligations of Party B and the Operating Company and all of the Contractual Obligations and full repayment or discharge of all of the Secured Debts.

 

 

VI              Notices

 

Any notice relating to this Agreement shall be delivered to the addresses set forth below (unless changed by written notice) by hand, registered mail or facsimile and shall be deemed to have been effectively delivered on the date indicated on the return receipt if delivered by registered mail, or  on the date in which it is delivered by hand, or on the date indicated on the confirmation of successful transmission if delivered by facsimile, provided that if delivered by facsimile, the original of the notice shall be immediately sent to the following addresses by hand or registered mail:

 

If to Party A:

 

Address: Building 10#, No. 115 Lane 572 Bibo Road, Pudong New Area, 201203, Shanghai

Attention: Hua CHEN

Telephone: 021-58381172

Facsimile: 021-58381091

 

If to Party B:

 

Address: Building 10#, No. 115 Lane 572 Bibo Road, Pudong New Area, 201203, Shanghai

Attention: Hua CHEN

Telephone: 021-58381172

Facsimile: 021-58381091

 

VII         Governing law and dispute resolution

 

1.                  The validity, interpretation, performance and dispute resolution in respect of this Agreement shall be governed by the laws of the PRC.

 

2.                  All the disputes arising from or in connection with this Agreement shall be settled by the Parties through consultation. In case any dispute fails to be settled through consultation within 30 days, either Party may submit the dispute to the Shanghai International Economic and Trade Arbitration Commission (“Commission”) to be settled through arbitration in accordance with the then effective arbitration rules of the Commission. For the avoidance of any doubt, each Party shall have the right to appoint one arbitrator and the Parties irrevocably appoint and authorize the Chairman of the Commission to select the third arbitrator. Such three arbitrators shall form the arbitration tribunal. The language of arbitration proceedings shall be Chinese. The arbitration award shall be final and binding on both Parties.

 

VIII    Miscellaneous

 

1.                  Party A shall be solely responsible for the expenses incurred in the execution and performance of this Agreement, including without limitation relevant legal costs and other expenses relating to the share pledge herein, if any. Where Party A is required to pay any expenses pursuant to the applicable laws of the PRC, Party A shall have the right to request Party B to reimburse such expenses after payment thereof.

 

2.                  The successor of each Party shall enjoy the rights and assume the separate obligations of such Party hereunder, as if it were a Party hereto.

 

3.                  Unless requested or agreed by Party A in writing in advance, no amendment or supplement may be made to this Agreement. If so requested by Party A, Party B shall give consent and cooperation to such amendment or supplement. With respect to any amendment or supplement to this Agreement made with the prior written consent of Party A, the Parties shall enter into a separate written agreement.

 

4.                  This Agreement shall be read and construed together with the Exclusive Support Services Agreement, the Exclusive Option Agreement and the Proxy Agreement. In case of any conflict, interpretations shall be made by reference to the relevant

 

 

provisions and purposes of the Exclusive Support Services Agreement, the Exclusive Option Agreement and the Proxy Agreement.

 

5.                  This Agreement shall made in Chinese in quadruplicate counterparts with equal legal effect, with each party holding one counterpart respectively, and one counterpart to be used in the registration of the share pledge herein. The Parties may execute additional counterparts of this Agreement where necessary.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK; THE SIGNATURE PAGE IS ATTACHED HEREINBELOW]

 

 

IN WITNESS WHEREOF, the Parties have executed or caused their respective authorized representatives to execute this Equity Pledge Agreement on the date first written above.

 

	
YAO FANG INFORMATION TECHNOLOGY (SHANGHAI)   CO., LTD.
    
	
 
    	
 
    
	
Signature:
    	
/s/ Hua CHEN
    	
 
    
	
Name: Hua CHEN
    	
 
    
	
Title: Legal Representative
    	
 
    
	
Seal: /s/ Company seal
    	
 
    
	
 
    	
 
    
	
GUANGDONG   YIHAO PHARMACEUTICAL CHAIN CO., LTD.
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Hua CHEN
    	
 
    
	
Name: Hua CHEN
    	
 
    
	
Title: Legal representative
    	
 
    
	
Seal: /s/ Seal of Guangdong Yihao   Pharmaceutical Chain Co., Ltd.
    	
 
    
				

 

 

Register of Shareholders of SHANGHAI YAOWANG E-COMMERCE CO., LTD.

 

	
Shareholder
    	
 
    	
Amount of capital
   contribution
    	
 
    	
Form of capital
   contribution
    	
 
    	
Percentage of
   shareholding
    	
 
    	
Remark
    
	
GUANGDONG YIHAO PHARMACEUTICAL CHAIN CO., LTD.
    	
 
    	
RMB1.0 million
    	
 
    	
Cash
    	
 
    	
100
    	
%
    	
Pursuant to the Equity Pledge Agreement entered into between YAO   FANG INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD. on the one part, and GUANGDONG YIHAO PHARMACEUTICAL CHAIN CO., LTD. on the other   part, GUANGDONG YIHAO PHARMACEUTICAL   CHAIN CO., LTD. has pledge all the shares held by it to YAO FANG INFORMATION TECHNOLOGY   (SHANGHAI) CO., LTD.
    

 

SHANGHAI YAOWANG E-COMMERCE CO., LTD. (Seal)

September 5, 2013

Seal: /s/ Seal of Shanghai Yaowang E-Commerce Co., Ltd.

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