Document:

Exhibit 10.30

 

SEPARATION AGREEMENT AND RELEASE

 

This Separation Agreement and Release (“Agreement and Release”) is made and entered into by and between Patricia S. Andrews (“Employee”) and Incyte Corporation (“Employer” or “Company”) in connection with Employee’s separation of employment with Employer, effective as of August 29, 2012.

 

RECITALS

 

WHEREFORE, Employee will separate from employment with Employer as of August 29, 2012; and 

 

WHEREFORE,  pursuant to the terms and conditions of Employee’s Offer Letter with Employer, dated September 10, 2008,   Employer is willing to provide to Employee a severance payment to assist Employee in transitioning to new employment, contingent upon Employee’s execution of this Agreement and Release.

 

NOW, THEREFORE, in consideration of the mutual promises and releases contained herein and other good and valuable consideration as set forth herein, it is hereby agreed as follows:

 

(1)           Severance.  In full and final settlement of any claims and demands for relief which may be asserted by Employee against Employer, its predecessors, successors and assigns, and the employees, directors, trustees, officers, agents, attorneys and representatives of same, Employer will:

 

(a)                                 pay Employee a separation amount of $573,648.19, an amount equal to one (1) year of Employee’s current base salary ($382,432.13) plus target bonus ($191,216.06), less all applicable withholdings (the “Separation Payment”). Employee acknowledges and agrees that the Company had no previous obligation to pay Employee this Separation Payment, absent her signing this Agreement and Release.  The Company will pay the Separation Payment to Employee as a lump sum payable on the next regular payroll date following the Effective Date, as defined in Paragraph twelve (12).

 

(b)                                 pay for twelve (12) months following the Effective Date (as defined in Paragraph 12), the full monthly premium for Employee’s continued participation in the Company’s group health coverage pursuant to COBRA, provided that Employee is eligible for and elects to receive COBRA coverage on a timely basis.  Thereafter, Employee’s continued participation in the Company’s

 

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group health coverage pursuant to COBRA shall be at her sole expense.

 

(c)                                  pay the cost of a 12-month outplacement package through Lee Hecht Harrison.  The amount due under this Paragraph will be paid directly to Lee Hecht Harrison and shall not exceed $14,000.  Employee is not permitted to seek outplacement services pursuant to this Paragraph until after the Effective Date (as defined in Paragraph 12).

 

(d)                                 pay the cost of Employee’s reasonable attorney fees up to and including September 12, 2012 (but specifically excluding the attorney fees for the draft complaint), upon presentation of a detailed invoice of such fees to the Company.

 

(e)                                  extend to a total of one hundred eighty (180) days the period during which Employee may exercise any of her stock options which were vested as of August 29, 2012.

 

(f)                                   employee will not be eligible for the payments and other benefits described in this Paragraph until:  (i) the Company has received an executed copy of this Agreement and Release, which Employee has not revoked pursuant to Paragraph 11 below; and (ii) Employee has returned all Company property and documents in accordance with Paragraph 15 below.

 

(2)           No Other Compensation.  Except as provided in Paragraph one (1), all other benefits, bonuses and compensation provided by Employer to Employee will cease on August 29, 2012, provided that Employee shall be paid all accrued but unpaid vacation due in the amount of $22,798.84.

 

(3)           Release.  Employee hereby expressly agrees and acknowledges that any and all claims and demands for damages, of whatever nature or kind, including attorneys’ fees and costs, which Employee ever had or now has against Employer, its predecessors, successors, employees, trustees, directors, officers, assigns, agents, attorneys and representatives or affiliates, which arose out of or relate in any way to Employee’s employment with or separation from employment with Employer and/or its predecessors, shall be forever waived, released or discharged.  Without limiting the generality of the foregoing waiver and release, such claims include, but are not limited to (i) any claims under the Employee Retirement Income Security Act, 29 U.S.C. Section 1001 et  seq.; the Age Discrimination in Employment Act, 29 U.S.C. Section 621 et  seq.; Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000e et  seq.; the Civil Rights Act of 1991, 42 U.S.C. Sections 1981 and 1981a; the Americans with Disabilities Act, 42 U.S.C. Section 12100 et  seq.; the Sarbanes-Oxley Act of 2002, as amended, 18 U.S.C. Section 1514A; the Delaware Discrimination in Employment Act, 19 Del. C. Section 710 et  seq.; the Delaware Handicapped Persons Protections Act, 19 Del. C. Section

 

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720; Delaware Whistleblowers’ Protection Act, 19 Del. C. Section 1701 et  seq., and any other federal, state or local laws prohibiting employment discrimination; (ii) claims relating to harassment, breach of contract or wrongful discharge, or breach of express or implied covenants; (iii) claims arising from any legal restrictions on Employer’s right to terminate its employees; and (iv) claims that Employee was fraudulently induced to enter into this Release.  Notwithstanding the foregoing, however, Employee and Employer agree that Employee does not release or waive any claims that may arise after the date that Employee signs this Agreement and Release or any other claims that cannot legally be waived by this Agreement and Release.  Employee represents that, to the best of her knowledge, no off-label promotion occurred during the period of her employment by Company and that the Company took appropriate steps to clarify for its employees any and all compliance-related concerns raised by the Employee.

 

(4)           Understanding of Agreement and Release.  Employee represents and agrees that she has not relied on any statements by Employer regarding her rights under the various federal and state laws prohibiting discrimination in the workplace.  Employee further acknowledges and agrees that Employer hereby recommends, advises, counsels, and encourages Employee to consult with an attorney of her own choosing and to discuss all aspects of this Agreement and Release with such attorney of her own choosing.  Employee further acknowledges that by delivery of this Agreement and Release, Employer has again advised Employee to consult with an attorney prior to executing this Agreement and Release.  Employee represents and agrees that she has carefully read this Agreement and Release, that she understands and has full knowledge of all of the provisions of this Agreement and Release, that she has consulted with an attorney of her own choosing, and that she is voluntarily and of her own free will and without any duress of any kind or nature entering into this Agreement and Release.

 

(5)           Confidentiality of Agreement and Release.  Employee represents and agrees that the terms of this Agreement and Release are confidential and further represents and agrees that she will not disclose said terms to any person other than her legal or financial advisors and members of her immediate family who will be advised by Employee of the confidential nature of this Agreement and Release.  Employee hereby agrees that a violation of the confidentiality provision by her, or by any other of the aforementioned persons, shall constitute a breach of the terms of this Agreement and Release.

 

(6)           Non-Disparagement.  Employee agrees that she will not make any negative comments or disparaging remarks, in writing, orally or electronically, about Company or any other related or affiliated entity, including their respective officers, directors, managers and employees, and their respective products and services.  However, nothing in this Agreement and Release is intended to or shall be interpreted:  (i) to restrict or otherwise interfere with Employee’s obligation to testify truthfully in any forum; or (ii) to restrict or otherwise interfere with Employee’s right and/or obligation to contact, cooperate with or provide information to any government agency or commission.  Company agrees that its officers, directors and executives will not make any negative comments or disparaging remarks, in writing, orally or electronically, about Employee’s relationship with Company or the performance of her duties with Employer.

 

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Nothing in this paragraph or this Agreement and Release shall be interpreted to restrict or inhibit in any manner Employer’s right and obligation (i) to testify truthfully in any forum; or (ii) to contact, cooperate with or provide information to any governmental agency.

 

(7)           Sufficiency of Consideration.  Employee acknowledges that the payments and other benefits under Paragraph 1 are sufficient consideration adequate to support the Release set forth in Paragraph 3 above, since the Employee is receiving benefits she otherwise would not have been entitled to receive had she not signed this Agreement and Release.

 

(8)           No Amendment.  Employee and Employer further expressly agree and understand that, other than the Confidential Information and Inventions Assignment Agreement referred to in paragraph 13 which remains in full force and effect,  this Agreement and Release constitutes the complete and entire agreement of the parties with respect to the subject matter hereof, and that any other promises, inducements, representations, warranties, or agreements with respect to the subject matter hereof have been superseded hereby and are not intended to survive this Agreement and Release.  No amendment or modification of this Agreement and Release shall be effective unless set forth in writing and signed by both the Employee and a duly authorized officer of Employer.

 

(9)           Severability.  Nothing in this Agreement and Release is intended to violate any law or shall be interpreted to violate any law.  If any paragraph or part or subpart of any paragraph in this Agreement and Release or the application thereof is construed to be overbroad and/or unenforceable, then the court making such determination shall have the authority to narrow the paragraph or part or subpart of the paragraph as necessary to make it enforceable and the paragraph or part or subpart of the paragraph shall then be enforceable in its/their narrowed form.  Moreover, each paragraph or part or subpart of each paragraph in this Agreement and Release is independent of and severable (separate)  from each other.  In the event that any paragraph or part or subpart of any paragraph in this Agreement and Release is determined to be legally invalid or unenforceable by a court and is not modified by a court to be enforceable, the affected paragraph or part or subpart of such paragraph shall be stricken from the Agreement and Release, and the remaining paragraphs or parts or subparts of such paragraphs of this Agreement and Release shall remain in full, force and effect.

 

(10)         Choice of Law.  Employee and Employer agree that all matters relative to the construction and interpretation of this Agreement and Release shall be construed and interpreted in accordance with the laws of the State of Delaware.

 

(11)         Revocation.  Employee represents and agrees that she has been provided a period of twenty-one (21) days to consider the terms of this Agreement and Release and has been advised that, once executed, this Agreement and Release may be revoked by Employee within seven (7) days of the date Employee signed this Agreement and Release.  Employee agrees that such revocation, if any, shall be provided in writing to Employer, no later than seven (7) days following the date Employee first signed this Agreement and Release, at the following address:

 

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Incyte Corporation

Experimental Station

Rt. 141 & Henry Clay Rd.

Building E336/204

Wilmington, DE  19880

Phone: [                   ]

Facsimile: [                 ]

Attn: Paula Swain, Human Resources

 

(12)         Effective Date.  This Agreement and Release shall not become effective or enforceable until the eighth (8th) day after execution by Employee (the “Effective Date”), provided that she has not earlier revoked this Release as provided in Paragraph eleven (11).

 

(13)         Confidential Information.  Regardless of whether Employee signs this Agreement and Release, she remains obligated to continue to comply with the Confidential Information and Invention Assignment Agreement which she executed as a condition of employment pursuant to the terms and conditions of her Offer Letter with Company, dated September 10, 2008.

 

(14)         Duty to Notify.  In the event Employee receives a request or demand, orally, in writing, electronically or otherwise, for the disclosure or production of confidential information which Employee created or acquired in the course of her employment (as defined in the Confidential Information and Invention Assignment Agreement referenced above in Paragraph 13), Employee must notify immediately the Company’s General Counsel by calling [             ].  Regardless of whether Employee is successful in reaching the Company’s General Counsel by telephone, Employee also must notify the Company’s General Counsel immediately in writing, via certified mail, at the following address:  Incyte Corporation, Experimental Station, Rt. 141 & Henry Clay Road, Building E336/226, Wilmington, DE 19880.  A copy of the request or demand as well as any and all documents potentially responsive to the request or demand shall be included with the written notification.  Employee shall wait a minimum of ten (10) days (or the maximum time permitted by such legal process, if less) after sending the letter before making a disclosure or production to give the Company time to determine whether the disclosure or production involves confidential and/or proprietary information, in which event the Employer may seek to prohibit and/or restrict the production and/or disclosure and/or to obtain a protective order with regard thereto.

 

(15)         Company Property and Documents.  Regardless of whether Employee signs this Agreement and Release, and as a condition of receiving the payments and other benefits set forth in Paragraph 1, Employee must return to Paula Swain, retaining no copies, (i) all Company property (including, but not limited to, office, desk or file cabinet keys, identification/key cards and parking passes, and equipment, such as computers and prints outs) and (ii) all Company documents (including, but not limited to, all hard copy, electronic and other files, forms, lists, charts, photographs, correspondence, computer records, programs, notes,

 

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memos, disks, DVDs, etc.)  Regardless of whether Employee signs this Agreement and Release, and as a condition of receiving the payments and other benefits set forth in Paragraph 1 above, Employee also must download all Employer-related electronically stored information (including but not limited to emails) from any personal computer and/or other storage devices or equipment or personal email accounts and  return all downloaded  material or otherwise electronically stored information and completely remove all such electronically stored information from the hard drive of such personal computer and/or all other storage devices or personal email accounts and, if requested, certify to Paula Swain that Employee has done so.

 

(16)         Statement of Non-Admission.  Nothing in this Agreement and Release is intended as or shall be construed as an admission or concession of liability or wrongdoing by Employer or any related of affiliated entity.  Rather, the proposed Agreement is being offered for the sole purpose of settling cooperatively and amicably any and all possible disputes between the parties.

 

 

	
/s/   Laurence V. Cronin
    	
 
    	
/s/   Patricia S. Andrews
    
	
Witness
    	
Patricia   S. Andrews
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
10/12/12
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Incyte   Corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
10/15/12
    	
 
    	
By:
    	
/s/   Paula J. Swain
    
	
 
    	
 
    	
Paula   J. Swain
    
	
 
    	
 
    	
Executive   Vice President, Human Resources
    

 

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Initials  PSA / PJSExhibit 10.4

 

Second Amended and Restated Equity Interest Pledge Agreement

 

This Second Amended and Restated Equity Interest Pledge Agreement (“this Agreement”) has been executed by and among the following parties on October 17, 2012 in Guangzhou, the People’s Republic of China (the “China”):

 

Party A: Vipshop (China) Co., Ltd. (“Party A” or “Pledgee”)

Address: Building 6, No. 20, Huahai Street, Fang Village, Liwan District, Guangzhou

 

Party B: Shen Ya

ID No.:

 

Party C: Hong Xiaobo

ID No.:

 

Party D: Wu Bin

ID No.:

 

Party E: Peng Xing

ID No.:

 

Party F: Guangzhou Vipshop Information Technology Co., Ltd.

Address: Building 1-5, No. 20, Huahai Street, Fang Village, Liwan District, Guangzhou

 

In this Agreement, Party B, Party C, Party D and Party E shall be collectively referred to as the “Pledgors”; each of Party A, Party B, Party C, Party D, Party E and Party F shall be referred to as a “Party” respectively, and collectively referred to as the “Parties”.

 

Whereas:

 

1.              Pledgors are citizens of China, and totally hold 100% of the equity interest in Party F. Party F is a limited liability company registered in Guangzhou, China, engaging in technical consulting service. Party F acknowledges the respective rights and obligations of Pledgors and Pledgee under this Agreement, and intends to provide any necessary assistance in registering the Pledge with the competent governmental authorities;

 

2.              Pledgee is a wholly foreign-owned enterprise registered in China. Pledgee and Party F owned by Pledgors have executed an Amended and Restated Exclusive Business Cooperation Agreement on October 8, 2011 (the “Business Cooperation Agreement”) and an Exclusive Purchase Framework Agreement in 2011 (the “Framework Agreement”);;

 

3.              Pledgee, Pledgors and Party F have executed a Second Amended and Restated Exclusive Option Agreement on October 17, 2012 (the “Exclusive Option Agreement”);

 

4.              Party B, Party C, Party D, Party E and Xu Yu (PRC ID Card No.:         ), the 

 

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former shareholder of Party F (“Xu Yu”) have jointly executed an Amended and Restated Equity Interest Pledge Agreement with Party A and Party F on October 8, 2011 (the “Original Equity Interest Pledge Agreement”);

 

5.              Party B and Xu Yu have executed an Equity Transfer Agreement on October 12, 2012, according to which Xu Yu transferred all of his equity interest in Party F to Party B.  After such share transfer is completed, Xu Yu is no longer the shareholder of Party F and Pledgors are all the shareholders of Party F.

 

6.              To ensure that Party F, Pledgors fully performs its or his obligations under the Business Cooperation Agreement, the Framework Agreement and/or the Exclusive Option Agreement and pay the consulting and service fees thereunder to Pledgee when the same becomes due, Pledgors hereby pledge to Pledgee all of the equity interest they now and in the future hold in Party F (whether or not the percentage of the equity interest is changed in the future) as collateral for payment of the consulting and service fees by Party F under the Business Cooperation Agreement.

 

7.              Due to the change of circumstances, the Parties wish to execute this Agreement to replace the Original Equity Interest Pledge Agreement.

 

To perform the provisions of the Business Cooperation Agreement, the Parties have agreed to execute this Agreement upon the following terms.

 

1.              Definitions

 

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

 

1.1                     Pledge: shall refer to the security interest granted by Pledgors to Pledgee pursuant to Article 2 of this Agreement, i.e., the right of Pledgee to be compensated on a preferential basis with the conversion, auction or sales price of the Equity Interest.

 

1.2                     Equity Interest: shall refer to all of the equity interest lawfully now held and hereafter acquired by Pledgors in Party F (whether or not the percentage of the equity interest is changed in the future).

 

1.3                     Term of Pledge: shall refer to the term set forth in Section 3 of this Agreement.

 

1.4                     Business Cooperation Agreement: shall refer to the Amended and Restated Exclusive Business Cooperation Agreement executed by and between Party F and Pledgee on October 8, 2011, as such may be amended from time to time.

 

1.5                     Event of Default: shall refer to any of the circumstances set forth in Article 7 of this Agreement.

 

1.6                     Notice of Default: shall refer to the notice issued by Pledgee in accordance 

 

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with this Agreement declaring an Event of Default.

 

2.              The Pledge

 

As collaterals for the timely and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of any or all of the payments due by Party F, including without limitation, the consulting and services fees payable to Pledgee under the Business Cooperation Agreement, Pledgors hereby pledge to Pledgee a first security interest in all of Pledgors’ rights, title and interests, whether now owned or hereafter acquired by Pledgors, in the Equity Interest of Party F.

 

3.              Term of Pledge

 

3.1                 The Pledge shall become effective on such date when the pledge of the Equity Interest contemplated herein has been registered with relevant administration for industry and commerce (the “AIC”). The Pledge shall be continuously valid until all payments due under the Business Cooperation Agreement, the Framework Agreement and the Exclusive Option Agreement have been fulfilled by Party F. Pledgors and Party F shall (1) register the Pledge in the shareholders’ register of Party F within 3 business days following the execution of this Agreement, and (2) submit an application to the AIC for the registration of the Pledge of the Equity Interest contemplated herein within 10 business days following the execution of this Agreement. The parties covenant that for the purpose of registration of the Pledge (including re-registration of the Pledge when the percentage of equity interest the Pledgors hold in Party F), the Parties hereto shall submit to the AIC the Equity Interest Pledge Contract as set forth in the Attachment 4 of this Agreement in the form required by the AIC at the location of Party F which shall truly reflect the information of the Pledge hereunder (the “AIC Pledge Contract”).  For matters not specified in the AIC Pledge Contract, the parties shall be bound by the provisions of this Agreement. Pledgors and Party F shall submit all necessary documents and complete all necessary procedures, as required by the PRC laws and regulations and the relevant AIC, to ensure that the Pledge of the Equity Interest shall be registered with the AIC as soon as possible after filing.

 

3.2                 During the Term of Pledge, in the event Party F fails to pay the exclusive consulting or service fees in accordance with the Business Cooperation Agreement, Pledgee shall have the right, but not the obligation, to dispose of the Pledge in accordance with the provisions of this Agreement.

 

4.              Custody of Records for Equity Interest subject to Pledge

 

4.1                 During the Term of Pledge set forth in this Agreement, Pledgors shall deliver to Pledgee’s custody the original capital contribution certificate for the Equity Interest (the Attachment 2) and the original shareholders’ register containing the Pledge (the Attachment 1) within five (5) working days from the execution of this Agreement or from completion of the 

 

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re-registration of shareholding when percentage of equity interest changed (in that case, Pledgors shall deliver to Pledgee’s custody the updated original capital contribution certificate for the Equity Interest and the updated original shareholders’ register containing the Pledge as attachment to this Agreement). Pledgee shall have custody of such original documents during the entire Term of Pledge set forth in this Agreement.

 

4.2                 Pledgee shall have the right to collect dividends generated by the Equity Interest during the Term of Pledge.

 

5.              Representations and Warranties of Pledgors

 

5.1                 Pledgors are the sole legal and beneficial owners of the Equity Interest.

 

5.2                 Pledgee shall have the right to dispose of and transfer the Equity Interest in accordance with the provisions set forth in this Agreement.

 

5.3                 Upon execution, this Agreement shall constitute the Pledgors’s legal, valid and binding obligations in accordance with the provisions herein.

 

5.4                 Except for the Pledge, Pledgors have not placed any security interest or other encumbrance on the Equity Interest.

 

5.5                 There is no pending disputes or litigation proceeding related to the Equity Interest.

 

6.              Covenants and Further Agreements of Pledgors

 

6.1                 Pledgors hereby covenant to Pledgee, that during the term of this Agreement, Pledgors shall:

 

6.1.1                    not transfer the Equity Interest, place or permit the existence of any security interest or other encumbrance on the Equity Interest, or disposal of the Equity Interest in any other means, without the prior written consent of Pledgee, except for the performance of the Exclusive Option Agreement executed by Pledgors,  Pledgee and Party F on the execution date of this Agreement;

 

6.1.2                    comply with the provisions of all laws and regulations applicable to the pledge of rights, and within five (5) working days of receipt of any notice, order or recommendation issued or prepared by relevant competent authorities regarding the Pledge, shall present the aforementioned notice, order or recommendation to Pledgee, and shall comply with the aforementioned notice, order or recommendation or submit objections and representations with respect to the aforementioned matters upon Pledgee’s reasonable request or upon consent of Pledgee;

 

6.1.3                    promptly notify Pledgee of any event or notice received by Pledgors that may have an impact on Pledgee’s rights to the Equity Interest or 

 

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any portion thereof, as well as any event or notice received by Pledgors that may have an impact on any guarantees and other  obligations of Pledgors arising out of this Agreement.

 

6.2                 Pledgors agree that the rights acquired by Pledgee in accordance with this Agreement with respect to the Pledge shall not be interrupted or harmed by Pledgors or any heirs or representatives of Pledgors or any other persons through any legal proceedings.

 

6.3                 To protect or perfect the security interest granted by this Agreement for payment of the consulting and service fees under the Business Cooperation Agreement, Pledgors hereby undertake to execute in good faith and to cause other parties who have interests in the Pledge to execute all certificates, agreements, deeds and/or covenants required by Pledgee. Pledgors also undertake to perform and to cause other parties who have interests in the Pledge to perform actions required by Pledgee, to facilitate the exercise by Pledgee of its rights and authority granted thereto by this Agreement, and to enter into all relevant documents regarding ownership of Equity Interest with Pledgee or designee(s) of Pledgee (natural persons/legal persons).  Pledgors undertake to provide Pledgee within a reasonable time with all notices, orders and decisions regarding the Pledge that are required by Pledgee.

 

6.4                 Pledgors hereby undertake to comply with and perform all guarantees, promises, agreements, representations and conditions under this Agreement. In the event of failure or partial performance of its guarantees, promises, agreements, representations and conditions, Pledgors shall indemnify Pledgee for all losses resulting therefrom.

 

6.5                     Pledgors hereby acknowledge that the transfer of equity interest under the Original Equity Interest Pledge Agreement shall not release the pledge of such equity interest. Part B hereby agrees to unconditionally assume any and all of the obligations of Xu Yu under the Original Equity Interest Pledge Agreement upon the transfer effective time.

 

7.              Event of Breach

 

7.1                 The following circumstances shall be deemed Event of Default:

 

7.1.1                    Party F fails to fully and timely fulfill any liabilities under the Business Cooperation Agreement or the Framework Agreement, including without limitation failure to pay in full any of the consulting and service fees payable under the Business Cooperation Agreement or breaches any other obligations of Party F thereunder;

 

7.1.2                    Pledgors or Party F has committed a material breach of any provisions of this Agreement;

 

7.1.3                    The Pledgors and Party F fail to register the Pledge in the shareholders’ register of Party F or fail to complete the Registration 

 

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of Pledge stipulated in Section 3.1;

 

7.1.4                    Except as expressly stipulated in Section 6.1.1, Pledgors transfer or purport to transfer or abandon the Equity Interest pledged or assign the Equity Interest pledged without the written consent of Pledgee; and

 

7.1.5                    The successor or custodian of Party F is capable of only partially performing or refuse to perform the payment obligations under the Business Cooperation Agreement.

 

7.2                 Upon notice or discovery of the occurrence of any circumstances or event that may lead to the aforementioned circumstances described in Section 7.1, Pledgors shall immediately notify Pledgee in writing accordingly.

 

7.3                 Unless an Event of Default set forth in this Section 7.1 has been successfully resolved to Pledgee’s satisfaction within twenty (20) working days after Pledgee delivers a notice to Pledgors requesting ratification of such Event of Default, Pledgee may issue a Notice of Default to Pledgors in writing at any time thereafter, demanding Pledgors to immediately dispose of the Pledge in accordance with the provisions of Article 8 of this Agreement.

 

8.              Exercise of Pledge

 

8.1                 Prior to the full payment of the consulting and service fees described in the Business Cooperation Agreement, without Pledgee’s written consent, Pledgors shall not assign the Pledge or the Equity Interest in Party F.

 

8.2                 Pledgee may issue a Notice of Default to Pledgors when exercising the Pledge.

 

8.3                 Subject to the provisions of Section 7.3, Pledgee may exercise the right to enforce the Pledge at the time when, or at any time after, the issuance of the Notice of Default in accordance with Section 8.2. Once Pledgee elects to enforce the Pledge, Pledgors shall cease to be entitled to any rights or interests associated with the Equity Interest.

 

8.4                 In the event of default, Pledgee is entitled to dispose of the Equity Interest pledged in accordance with applicable PRC laws. Only to the extent permitted under applicable PRC laws, Pledgee has no obligation to account to Pledgors for proceeds of disposition of the Equity Interest, and Pledgors hereby waive any rights they may have to demand any such accounting from Pledgee; Likewise, in such circumstance Pledgors shall have no obligation to Pledgee for any deficiency remaining after such disposition of the Equity Interest pledged.

 

8.5                 When Pledgee disposes of the Pledge in accordance with this Agreement, Pledgors and Party F shall provide necessary assistance to enable Pledgee to enforce the Pledge in accordance with this Agreement.

 

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9.              Assignment

 

9.1                 Without Pledgee’s prior written consent, Pledgors shall not have the right to  assign or delegate its rights and obligations under this Agreement.

 

9.2                 This Agreement shall be binding on Pledgors and its successors and permitted assigns, and shall be valid with respect to Pledgee and each of its successors and assigns.

 

9.3                 At any time, Pledgee may assign any and all of its rights and obligations under the Business Cooperation Agreement to its designee(s) (natural/legal persons), in which case the assigns shall have the rights and obligations of Pledgee under this Agreement, as if it were the original party to this Agreement. When the Pledgee assigns the rights and obligations under the Business Cooperation Agreement, upon Pledgee’s request, Pledgors shall execute relevant agreements or other documents relating to such assignment.

 

9.4                 In the event of a change in Pledgee due to an assignment, Pledgors shall, at the request of Pledgee, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement, and register for change of the same with the competent AIC.

 

9.5                 Pledgors shall strictly abide by the provisions of this Agreement and other contracts jointly or separately executed by the Parties hereto or any of them, including the Exclusive Option Agreement and the Power of Attorney granted to Pledgee, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability thereof. Any remaining rights of Pledgors with respect to the Equity Interest pledged hereunder shall not be exercised by Pledgors except in accordance with the written instructions of Pledgee.

 

10.       Termination

 

Upon the full payment of the consulting and service fees under the Business Cooperation Agreement and upon termination of Party F’s obligations under the Business Cooperation Agreement, this Agreement shall be terminated, and Pledgee shall then cancel or terminate this Agreement as soon as reasonably practicable.

 

11.       Handling Fees and Other Expenses

 

All fees and out of pocket expenses relating to this Agreement, including but not limited to legal costs, costs of production, stamp tax and any other taxes and fees, shall be borne by Party F.

 

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12.       Confidentiality

 

The Parties acknowledge that the existence and the terms of this Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance this Agreement are regarded as confidential information. Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall  not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders, investors, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, investors, legal counsels or financial advisors shall  be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the staff members or agencies hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Agreement. This Section shall survive the termination of this Agreement for any reason.

 

13.       Governing Law and Resolution of Disputes

 

13.1              The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the laws of China.

 

13.2              In the event of any dispute with respect to the construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement on the dispute within 30 days after either Party’s request to the other Parties for resolution of the dispute through negotiations, either Party may submit the relevant dispute to the China International Economic and Trade Arbitration Commission South China Sub-Commission for arbitration, in accordance with its Arbitration Rules. The arbitration shall be conducted in Guangzhou, and the language used in arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties.

 

13.3              Upon the occurrence of any disputes arising from the construction and performance of this Agreement or during the pending arbitration of any dispute, except for the matters under dispute, the Parties to this Agreement shall continue to exercise their respective rights under this Agreement and perform their respective obligations under this Agreement.

 

14.       Notices

 

14.1              All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such party set forth below. A confirmation copy of each notice shall also be sent by E-mail. The dates on which notices shall be deemed to have been effectively given shall be 

 

8

 

determined as follows:

 

14.2              Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively given on the date of delivery or refusal at the address specified for notices.

 

14.3              Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of transmission).

 

14.4              For the purpose of notices, the addresses of the Parties are as follows:

 

	
Party   A:
    	
Vipshop   (China) Co., Ltd.
    
	
Address:
    	
Building 6,   No. 20, Huahai Street, Fang Village, Liwan District, Guangzhou
    
	
Attn:
    	
Shen Ya
    
	
Phone:
    	
020-22330008
    
	
Facsimile:
    	
020-22330111
    
	
 
    	
 
    
	
Party B:
    	
Shen   Ya
    
	
Address:
    	
Building 6,   No. 20, Huahai Street, Fang Village, Liwan District, Guangzhou
    
	
Phone:
    	
020-22330008
    
	
 
    	
 
    
	
Party   C:
    	
Hong Xiaobo
    
	
Address:
    	
Building 6,   No. 20, Huahai Street, Fang Village, Liwan District, Guangzhou
    
	
Phone:
    	
020-22330008
    
	
 
    	
 
    
	
Party   D:
    	
Wu Bin
    
	
Address:
    	
Building 6,   No. 20, Huahai Street, Fang Village, Liwan District, Guangzhou
    
	
电话:
    	
020-22330008
    
	
Phone:
    	
020-22330008
    
	
 
    	
 
    
	
Party   E:
    	
Peng Xing
    
	
Address:
    	
Building 6,   No. 20, Huahai Street, Fang Village, Liwan District, Guangzhou
    
	
Phone:
    	
020-22330008
    
	
 
    	
 
    
	
Party   F:
    	
Guangzhou   Vipshop Information Technology Co., Ltd.
    
	
Address:
    	
Building 1-5,   No. 20, Huahai Street, Fang Village, Liwan District, Guangzhou
    
	
Attn:
    	
Shen Ya
    
	
Phone:
    	
020-22330008
    
	
Facsimile:
    	
020-22330111
    

 

14.5              Any Party may at any time change its address for notices by a notice delivered to the other Parties in accordance with the terms hereof.

 

9

 

15.       Severability

 

In the event that one or several of the provisions of this Contract are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Contract shall not be affected or compromised in any respect. The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

16.       Attachments

 

The attachments set forth herein shall be an integral part of this Agreement.

 

17.       Effectiveness

 

17.1             Any amendments, changes and supplements to this Agreement shall be in writing and shall become effective upon completion of the governmental filing procedures (if applicable) after the affixation of the signatures or seals of the Parties.

 

17.2             The Parties agree that this Agreement shall replace the Original Equity Interest Pledge Agreement after this Agreement becomes effective.

 

17.3             This Agreement is written in Chinese and English in six copies. Each Party shall hold one copy respectively. Each copy of this Agreement shall have equal validity. In case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.

 

[The Remainder of this page is intentionally left blank]

 

10

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Second Amended and Restated Equity Interest Pledge Agreement as of the date first above written.

 

 

Party A: Vipshop (China) Co., Ltd.

 

 

	
By:
    	
/s/ Shen Ya
    	
 
    
	
Name:
    	
Shen Ya
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

11

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Second Amended and Restated Equity Interest Pledge Agreement as of the date first above written.

 

 

	
Party   B:  Shen Ya
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Shen Ya
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Party   C:  Hong Xiaobo
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Hong Xiaobo
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Party   D:  Wu Bin
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Wu Bin
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Party   E:  Peng Xing
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Peng Xing
    	
 
    

 

12

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Second Amended and Restated Equity Interest Pledge Agreement as of the date first above written.

 

 

Party F: Guangzhou Vipshop Information Technology Co., Ltd.

 

 

	
By:
    	
/s/ Shen Ya
    	
 
    
	
Name:
    	
Shen Ya
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

13

 

Attachments:

 

1.                              Shareholders’ Register of Guangzhou Vipshop Information Technology Co., Ltd.;

 

2.                              The Capital Contribution Certificate for Guangzhou Vipshop Information Technology Co., Ltd.;

 

3.                              Amended and Restated Exclusive Business Cooperation Agreement;

 

14

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