Document:

Exhibit 10.17

 

EXCLUSIVE TECHNICAL SUPPORT AGREEMENT

 

This Agreement is entered into in Haidian District, Beijing as of December 5, 2011 by and between the following Parties:

 

Party A: Shanghai Yi Yue Information Technology Co., Ltd.

Address: Room 404, Building 1, No. 84, Lane 453, Hutai Road, Shanghai

Party B: Shanghai Yi Xin E-Commerce Co., Ltd.

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

 

WHEREAS:

 

(1)           Party A is a limited liability company established and duly existing in Shanghai, China, which mainly engages in the business of 1) the design, development and production of computer software and hardware; 2) the sales of self-produced products; 3) the provision of technology service; 4) the provision of investment managerial consulting services, enterprise management consulting services and business information consulting services.

 

(2)           Party B is a limited liability company registered in Shanghai, China, which mainly engages in the business of 1) e-commerce, 2) technology development and technology services; 3) .the design and production of advertisement; 4) real estate agency services; 5) the provision of investment managerial consulting services and enterprise management consulting services.

 

(3)           Required for its business, Party B decides to engage Party A as its exclusive technology service provider, to provide Party B with the relevant services such as technology transfer, technology license, technology service and provision of equipment. Party A agrees to provide Party B with the Technology Service in accordance with this Agreement.

 

THEREFORE, through amicable consultations, the Parties have reached the following agreements on the detailed matters related to the provision of exclusive Technology Service by Party A to Party B.

 

Article 1 Definitions and Interpretation

 

1.1          “Websites” shall mean all websites operated by Party B.

 

1.2          “e-commerce” shall means the buying and selling of products or services over electronic systems such as the Internet and other computer networks.

 

1.3          “Internet Information Service” shall mean the business of providing the Internet users with various information services via the Internet, including without limitation, search engine, Internet publication, online games, email and development of websites.

 

1.4          “Internet Advertising Service” shall mean the business of publishing online advertisements for the customers via the Internet.

 

1.5          “Technology Service” shall mean all technological service provided by Party A to Party B in accordance with this Agreement, including without limitation, technology transfer, technology license, technology service and provision of equipment.

 

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Article 2 Exclusive Cooperation

 

2.1          Party A is Party B’s exclusive technology service provider. Unless any event described in Article 2.2 or 2.3 of this Agreement occurs, all of the Technology Service (including without limitation, technology transfer, technology license, technology service and provision of equipment) required for any of the business operated by Party B (including without limitation, the Internet Information Service and the Internet Advertising Service) shall be provided by Party A on an exclusive basis. Without Party A’s prior written consent, Party B shall not seek any third party other than Party A to provide any part of the Technology Service under this Agreement in any manner.

 

2.2          Party B agrees that in case Party A objectively does not have the ability to provide Party B with certain part of the Technology Service, Party A may exclusively designate an appropriate third party to provide Party B with such part of the Technology Service in accordance with the terms and conditions provided in this Agreement. Party B further agrees that in any case, Party A is entitled to entrust, without any reason, any properly qualified third party to provide Party B with the Technology Service that should, pursuant to this Agreement, be provided by Party A to Party B. Party B agrees to accept the Technology Service provided by such appropriate third party entrusted by Party A.

 

2.3          In case of any of the following circumstances, Party B is entitled to, at its own discretion, seek any third party to provide the Technology Service:

 

2.3.1       Party A voluntarily abandons its right to act as an exclusive technology service provider and gives a written consent to the provision of the Technology Service by a third party to Party B;

 

2.3.2       Party A is objectively unable to provide Party B with certain part of the Technology Service and fails to designate any appropriate third party to provide Party B with such part of the Technology Service; or

 

2.3.3       Party A decides to neither provide Party B with certain part of the Technology Service nor designate any appropriate third party to provide Party B with such part of the Technology Service.

 

Article 3 Technology Transfer

 

3.1          Unless any event described in Article 2.2 or 2.3 of this Agreement occurs, all of the technology required to be purchased for any of Party B’s business shall be provided by Party A on an exclusive basis. Party A will try its best to develop and transfer to Party B the technology that is required for Party B’s business and owned by Party A.

 

3.2          The Parties shall negotiate with each other to enter into specific technology transfer contracts to expressly specify the detail matters such as the technology to be transferred, transfer fees and payment.

 

Article 4 Technology License

 

4.1          Unless any event described in Article 2.2 or 2.3 of this Agreement occurs, all of the technology required to be licensed for any of Party B’s business 

 

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shall be provided by Party A on an exclusive basis. Party A will try its best to license Party B to use the technology owned by Party A, or re-license Party B to use the technology as approved by the owner.

 

4.2          The Parties shall negotiate with each other to enter into specific technology license contracts to expressly specify the detail matters such as the technology to be licensed, the method to license the technology, license fees and payment.

 

Article 5 Technology Service

 

5.1          Unless any event described in Article 2.2 or 2.3 of this Agreement occurs, all of the technology service (including without limitation, technology support, technology training and technology consulting, see Appendix Ito this Agreement (List of Technology Service) for details) required for any of Party B’s business shall be provided by Party A on an exclusive basis. Party A will try its best to provide Party B with the technology service required for and related to Party B’s business.

 

5.2          Party B shall provide all necessary assistance to Party A’s provision of technology service, including without limitation:

 

5.2.1       Party B shall cause its employees to take an appropriately and reasonably prudent attitude when using and operating the system and equipment;

 

5.2.2       Party B shall notify Party A immediately of any circumstance that may affect Party B’s business;

 

5.2.3       Party B shall allow Party A and its authorized personnel to enter into, at any reasonable time, the premises owned or rent by Party B to place any system or equipment related to Party B’s business; and

 

5.2.4       Any other necessary assistance.

 

5.3          The Parties agree to enter into (if necessary) separate technology service agreements on the details of various technology services during the valid term of this Agreement to specify or adjust the technology services to be provided, the methods to provide such services and the technicians within the framework provided in this Agreement.

 

5.4          With regard to the technology services provided by Party A to Party B, the Parties agree, based on the number of working hours of Party A’s engineers to provide the technology services to Party B (on an hourly basis), to calculate the fees for the technology services at the following rates:

 

5.4.1       for the technology service provided by a Party A’s senior engineer to Party B, Party B shall calculate and pay to Party A the technology service fee at the rate of RMB4,000 per hour per capita;

 

5.4.2       for the technology service provided by a Party A’s mid-level engineer to Party B, Party B shall calculate and pay to Party A the technology service fee at the rate of

 

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RMB2,000 per hour per capita; and

 

5.4.3       for the technology service provided by a Party A’s junior engineer to Party B, Party B shall calculate and pay to Party A the technology service fee at the price of RMB1,000 per hour per capita.

 

5.4.4       Party B shall calculate and pay to Party A the technical support fee at the rate of RMB20,000/month;

 

5.4.5       Party B shall calculate and pay to Party A the technical training fee at the rate of RMB10,000/month;

 

5.4.6       Party B shall calculate and pay to Party A the technical consulting fee at the rate of RMB20,000/month;

 

5.4.7       If the agreement is executed after its expiration date, such prices can be re-calculated each year.

 

5.4.8       The workload of each project: both parties shall budget at the early stage of the project and determine the final settlement of account when the project is finished. The workload shall be calculated according to the final settlement of account.

 

5.4.9       Time and method of settling accounts: both parties shall settle the account at December 20 each year according to actual situation and issue a sheet of settlement of account for both parties’ confirmation.

 

5.5          Party A shall, within the first five working days of each month, issue a bill to Party B of the working hours for the technology services provided by Party A to Party B during the last month at the rates agreed by the Parties. The bill shall indicate the level of Party A’s engineers who provided the technology services to Party B and their respective working hours, and Party B shall, within three working days after its receipt of the bill, pay to Party A the technology service fee in accordance with the amount in the bill.

 

Article 6 Provision of Equipment

 

6.1          Unless any event described in Article 2.2 or 2.3 of this Agreement occurs, all of the equipment required for any of Party B’s business shall be provided by Party A on an exclusive basis or be provided by the equipment supplier designated by Party A. The specific way to provide such equipment (including without limitation, lease, sales and transfer) shall be decided by Party A unilaterally.

 

6.2          The Parties shall negotiate with each other to enter into specific equipment transfer agreements or equipment lease agreements to expressly specify the detail matters such as the method to provide such equipment, price and term.

 

Article 7 Payment

 

7.1          For the Technology Service provided by Party A to Party B, Party B shall, based on actual circumstances, pay to Party A the technology transfer fee, technology license fee, technology service fee and equipment fee etc. in accordance with the relevant provisions in this Agreement.

 

7.2          For the above fees paid by Party B, Party A shall issue corresponding invoices to Party B.

 

7.3          If Party A designates a third party to provide Party B with the Technology Service in accordance with this Agreement, Party A may choose any of the following ways of payment for such third party’s fees and require Party B to implement:

 

7.1.1       Party B pays the fees for the Technology Service to the third party directly; or

 

7.1.2       Party B pays the fees for the Technology Service to Party A directly and Party A is responsible for settling with such third party.

 

7.4          Where Party A designates a third party to provide Party B with the Technology Service in accordance with this Agreement, if Party A, for whatever reasons, assumes any joint and several liability to such third party due to Party B’s reasons, Party B shall compensate Party A for all economic losses incurred thereby.

 

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Article 8 Ownership of Assets

 

8.1          The Parties agree that the following assets originated from the Technology Service provided by Party A to Party B shall be owned by Party A:

 

8.1.1       the words, images, layouts and any other graphic designs or information content created or made by Party A, except those whose copyrights belong to third parties;

 

8.1.2       the database (including without limitation, the database storing contents and the database storing information of registered users) developed by Party A for Party B and all of the content contained therein; and

 

8.1.3       any other tangible or intangible assets originated or derived from the Technology Service provided by Party A to Party B in accordance with this Agreement, except those owned by Party B on clear grounds.

 

8.2          Party B recognizes Party A’s ownership of the assets above and undertakes not to make any claim on any assets above. Where necessary and requested by Party A, Party B shall provide all necessary assistance (including without limitation, issuing corresponding certificates) to make clear Party A’s ownership of the assets above.

 

8.3          During the term of cooperation between the Parties, except as specifically provided in this Agreement or other relevant written agreements that the ownership shall be transferred from Party A to Party B, all assets provided to Party B such as equipment, technology and software shall still be owned by Party A, and Party B shall only have the right of use over the assets during the valid term of this Agreement.

 

Article 9 Confidentiality

 

9.1          Either Party shall keep confidential any confidential material and information of the other Party known or accessed due to the execution or performance of this Agreement (the “Confidential Information”). Without the other Party’s written consent, neither Party shall disclose, give or transfer such Confidential Information to any third parties.

 

9.2          If requested by either Party, the other Party shall return, destroy, or otherwise dispose of all of the documents, materials, or software that contain any Confidential Information as requested, and stop using the Confidential Information.

 

9.3          The Parties’ obligations under this Article shall survive the termination of this Agreement. Either Party shall still comply with the confidentiality terms of this Agreement and fulfill the confidentiality obligations as promised, until the other Party gives consent to the release of such obligations or as a matter of fact, violation of the confidentiality terms herein will not cause damage of any form to the other Party.

 

Article 10 Payment of Taxes

 

10.1        The Parties shall respectively pay taxes to relevant tax authorities in accordance with relevant laws, regulations and State policies.

 

10.2        In the event that either Party pays any tax for the other Party, the paying Party shall submit the tax certificate to the payable Party as soon as possible, and the payable Party shall compensate the equivalent amount to the paying Party within seven days after the receipt of such tax certificate.

 

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Article 11 Representations, Covenants and Warranties

 

11.1        Either of the Parties represents, covenants and warrants to the other Party as follows:

 

11.1.1     It is a company lawfully established and duly existing;

 

11.1.2     It is qualified to conduct the transaction hereunder and such transaction is in line with its business scope;

 

11.1.3     It has full power to enter into this Agreement, and its authorized representative has obtained full authorization to execute this Agreement on behalf of it;

 

11.1.4     It has the ability to perform its obligations hereunder, and such performance will not violate any restrictions of legal documents binding upon it;

 

11.1.5     It is not subject to any liquidation, dissolution or bankruptcy procedures.

 

11.2        Party B covenants that during the valid term of this Agreement, Party B shall notify Party A of any change in Party B’s shareholding structure thirty days in advance.

 

11.3        Party B covenants that except as required for the works provided in this Agreement, Party B shall not use or copy the trademarks, signs or company names of Party A or its affiliates without Party A’s prior written consent.

 

11.4        Party B shall neither conduct, nor allow any third party to conduct any act or omission that is detrimental to Party A’s ownership of technology or any other intellectual property or any other rights of Party A.

 

Article 12 Liability for Breach of Contract

 

12.1        Either Party’s direct or indirect violation of any provisions herein or failure in assuming or untimely or insufficient assumption of any of its obligations hereunder shall constitute a breach of contract. The non-breaching Party (the “Non-Breaching Party”) is entitled to send to the breaching Party (the “Breaching Party”) a written notice, requesting the Breaching Party to rectify its breach, take sufficient, effective and timely measures to eliminate the effects of breach, and compensate the Non-Breaching Party for any losses incurred by the breach.

 

12.2        After the occurrence of breach, in case such breach has made it impossible or unfair for the Non-Breaching Party to perform its corresponding obligations hereunder based on the Non-Breaching Party’s reasonable and objective judgments, the Non-Breaching Party is entitled to send to the Breaching Party a written notice of its temporary suspension of performance of corresponding obligations hereunder, until the Breaching Party stops the breach, takes sufficient, effective and timely measures to eliminate the effects of breach, and compensate the Non-Breaching Party for any losses incurred by the breach.

 

12.3        The losses of the Non-Breaching Party that should be compensated by the Breaching Party include direct economic losses and any foreseeable indirect losses and extra expenses incurred by the breach, including without limitation, the attorneys’ fee, litigation and arbitration fee, financial expense and travel charge.

 

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Article 13 Force Majeure

 

13.1        “Force Majeure” shall mean events beyond the reasonable control of the Parties that are unforeseeable or foreseeable but unavoidable, which cause obstruction in, impact on or delay in either Party’s performance of part or all of its obligations in accordance with this Agreement, including without limitation, government acts, natural disasters, wars, hacker attacks or any other similar events.

 

13.2        The Party affected by Force Majeure may suspend the performance of relevant obligations hereunder that cannot be performed due to Force Majeure until the effects of Force Majeure are eliminated, without having to assume any liability for breach of contract, provided however that, such Party shall endeavor to overcome such events and reduce the negative effects to the best of its abilities.

 

13.3        The Party affected by Force Majeure shall provide the other Party with valid certificate documents verifying the occurrence of Force Majeure events, which documents shall be issued by the notary office where the events occur (or other appropriate agencies). In case the Party affected by Force Majeure cannot provide such certificate documents, the other Party may request it to assume the liability for breach of contract in accordance with this Agreement.

 

Article 14 Effectiveness, Amendment and Termination

 

14.1        This Agreement takes effect as of the date when it is signed and stamped by the authorized representatives of the Parties, and shall be terminated on the date when Party B dissolves according to law.

 

14.2        Unless provided otherwise herein, Party A is entitled to immediately early terminate this Agreement unilaterally by sending a written notice upon any of the followings happening to Party B:

 

14.2.1     Party B breaches this Agreement, and within thirty (30) days after Party A sends out the written notice, fails to rectify its breach, take sufficient, effective and timely measures to eliminate the effects of breach, and compensate Party A for any losses incurred by the breach.

 

14.2.2     Party B is bankrupt or is subject to any liquidation procedure and such procedure is not revoked within seven (7) days; and

 

14.2.3     due to any event of Force Majeure, Party B’s failure to perform this Agreement lasts for over twenty (20) days.

 

14.3        Except as provided in the immediate precedent clause, Party B agrees that Party A is entitled to early terminate this Agreement at any time by sending a written notice twenty days in advance without any reason. However, Party B is not entitled to early terminate this Agreement unless as provided herein.

 

14.4        The early termination of this Agreement shall not affect the rights and obligations of the Parties arising out of this Agreement prior to the early termination date.

 

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Article 15 Delivery of Notice

 

15.1        Notices relevant to this Agreement sent by one Party to the other shall be made in written form and delivered in person, or by fax, telegram, telex or email, or by registered mail (postage paid) or express mail. As to those delivered in person or by fax, telegram, telex or email, the delivery date shall be the date when it is sent; as to those delivered by registered mail (postage paid) or express mail, the delivery date shall be the third day after it is sent.

 

Article 16 Dispute Resolution

 

16.1        With regard to disputes arising out of the interpretation and performance of the terms hereunder, the Parties shall resolve the disputes through consultations in good faith.

 

16.2        In case no resolution can be made, the dispute shall be submitted to China International Economic and Trade Arbitration Commission for arbitration in Beijing in accordance with its arbitration rules then effective. The arbitration shall be conducted in Chinese. The arbitration award shall be final and binding upon the Parties.

 

16.3        The conclusion, effectiveness, implementation and interpretation of this Agreement and resolution of disputes shall all be governed by the PRC laws.

 

Article 17 Miscellaneous

 

17.1        This Agreement is written in two originals. Each of the Parties shall hold one original with each having the same legal effect.

 

17.2        The headings in this Agreement are written for the ease of reference only, and in no event shall they affect the interpretation of any terms of this Agreement.

 

17.3        The Parties may amend and supplement this Agreement in the way of a written agreement. Amendment agreements and supplement agreements executed by the Parties are both part of this Agreement, having the same legal effect as this Agreement.

 

17.4        In case any term herein becomes all or partly invalid or unenforceable due to the violation of law or governmental regulations or other reasons, the affected part of such term shall be considered to have been removed, provided however that, the removal of the affected part of such term shall not affect the legal effect of the remaining part of such term or other terms herein. The Parties shall conclude new terms through consultations to replace such invalid or unenforceable terms.

 

17.5        Unless provided otherwise, a Party’s failure or delay in exercising any of the rights, powers or privileges that it is entitled to under this Agreement shall not be considered its waiver of such rights, powers or privileges, nor shall any single or partial exercise of any rights, powers or privileges by a Party preclude its exercise of other rights, powers or privileges.

 

17.6        This Agreement constitutes all agreements reached by the Parties on the subject matter of the cooperation project, and supersedes any previous or concurrent oral and written agreement, understanding and correspondence relevant to the subject matter of the cooperation project between the Parties. Unless specifically provided herein, there is no other explicit or implicit obligation or covenant between the Parties.

 

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17.7        Matters not covered in this Agreement shall be determined by the Parties separately through consultations. 

 

Shanghai Yi Yue Information Technology Co., Ltd.

 

Authorized Representative: /seal/ 

 

Shanghai Yi Xin E-Commerce Co., Ltd.

 

Authorized Representative: /seal/

 

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Appendix I: List of Technology Service

 

The Parties agree that, the technology services described in this Agreement includes without limitation: 

 

1 Technology Support for E-Commerce Service

 

1.1          Party A agrees to act as Party B’s technology service provider and provide Party B with the technology services required for the operation of the e-commerce in accordance with the conditions of this Agreement, with the specific content including without limitation, the following items in connection with the e-commerce Service:

 

1.1.1  Development, update and upgrade of the client side software;

 

1.1.2  Development, update and upgrade of the web server side software;

 

1.1.3  Technology development and maintenance of the database;

 

1.1.4  Technology development of the system;

 

1.1.5  General design scheme of the system;

 

1.1.6  Installation and debugging of the system;

 

1.1.7  Trial run and testing of the system;

 

1.1.8  Installation and debugging of the system’s expansion;

 

1.1.9  Inspection and maintenance of the hardware equipment for operation;

 

1.1.10     Daily maintenance of the system software;

 

1.1.11     Improvement and upgrade of the system software.

 

Article 2 Technology Support for Internet Information Service

 

2.1          Party A agrees to provide Party B with the technology services in connection with the Internet Information Service. The specific content of the technology services includes without limitation:

 

2.1.1  Development, update and upgrade of the client side software;

 

2.1.2  Development, update and upgrade of the web server side software; 

 

2.1.3  Technology development and maintenance of the database;

 

2.1.4  Technology development of the system, general design, testing, installation and debugging, installation and debugging of the expansion, inspection and maintenance of the hardware equipment for operation, daily maintenance of the software, improvement and upgrade of the software in connection with the Internet Information Service.

 

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2.2          Compilation, gathering statistics and integration as well as database programming and design of technical platform of various information required to be used by Party B in the operation of the Internet Information Service, including without limitation, news, finance and economics, science and technology, sports, entertainment, games, fashion, education, medical treatment, health, culture and resources of professionals, assisting in the determination of the framework and channel structural design of the same, and provision of content update services at the technical level.

 

2.3          Providing Party B with design and technical support of web pages, and assisting Party B in providing end users with relaxing and friendly interfaces of various services such as news browsing, shopping, medical treatment, chatting, entertainment, search and registration.

 

2.4          With regard to the system software required for the website operation that is provided by Party A to Party B, Party A shall provide Party B with materials and documents of the system such as user guide and manual of such system software for the website operation.

 

2.5          In case that Party B needs to change the system environment of the website, including operating system environment, database environment and so forth, where Party A’s assistance is required, Party A shall provide corresponding solutions.

 

2.6          Assisting Party B in resolving problems occurred during the process of installation and operation of the website operating equipment.

 

Article 3 Technology Support for Internet Advertising Service

 

3.1          Party A agrees to provide Party B with the technology services in connection with the Internet Advertising Service. The specific content of the technology services includes without limitation:

 

3.1.1  Development, update and upgrade of the Internet advertisement publishing software;

 

3.1.2  Installation and debugging of the Internet advertisement publishing software;

 

3.1.3  Technical maintenance of the Internet advertisement publishing software;

 

3.1.4  Design and production of Internet advertisements.

 

Article 4 Technology Training

 

4.1          Party A agrees to provide Party B and staff of Party B with the following training:

 

4.1.1  Skills training in respect of the installation and operation of equipment and facilities;

 

4.1.2  Training on providing appropriate customer services or techniques and other aspects;

 

4.1.3  Training on using the on-line editing software.

 

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Article 5 Technology Consulting

 

5.1          To provide consulting service for the purchase of relevant equipment and software and hardware system required for Party B’s operation of the Internet Information Service, including without limitation, to provide technical advice for the selection and installation and debugging of various tool software, application software and technical platform, and the purchase, types and performance of various matching hardware facilities and equipment.

 

5.2          With regard to the technical projects designated by Party B, Party A agrees to provide Party B with technology consulting services such as technological demonstration, technological forecasting, special technological investigation and analysis and assessment report.

 

5.3          To provide technology consulting services for the application of the Internet software, hardware, equipment and system on-line editing software installed or to be installed by Party B.

 

5.4          To provide Party B with the following information: investigation, analysis and assessment report of the trend, technology, expense and income of domestic, foreign and Party B’s various Internet services (including special Internet services).

 

5.5          Party B may conduct inquiries or function consulting on specific technical problems with Party A’s technical support department in the way of email, telephone and fax and etc. Party A’s engineers will reply to the questions and assist the clients in resolving the problem.

 

5.6          In case of emergencies that Party B is unable to handle, Party A’s engineers, upon consent by Party B, may conduct remote login to check the system status and resolve the problem.

 

5.7          Party A may, within its ability, satisfy the other technology consulting requirements raised by Party B. 

 

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12Exhibit 10.18

	
 
    

 

Zuyu DING

 

Weijie MA

 

Beijing Maiteng Fengshun Science and Technology Co., Ltd.

 

AND

 

Beijing Jiajujiu E-Commerce Co., Ltd.

 

 

Exclusive Call Option Agreement

 

In Respect Of Beijing Jiajujiu E-Commerce Co., Ltd.

 

 

	
April 1, 2012
    
	
 
    

 

 

EXCLUSIVE CALL OPTION AGREEMENT

 

This EXCLUSIVE CALL OPTION AGREEMENT (this “Agreement”) is entered into as of April 1, 2012 by and among the following parties:

 

1.     Zuyu DING

 

Identity Card No.:

 

2.     Weijie MA

 

Identity Card No.:

 

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

 

3.     Beijing Maiteng Fengshun Science and Technology Co., Ltd.  (the “WFOE”)

 

Registered address: Room 811, No. 58, North Sihuan West Road, Haidian District, Beijing

 

4.     Beijing Jiajujiu E-Commerce Co., Ltd.  (the “Company”)

 

Registered address: Room 1513, 15/F, No. 5 Building, No. 1 Court, Shangdi 10th Street, Haidian District, Beijing

 

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

 

WHEREAS:

 

(1)   The Company Shareholders are the registered shareholders of the Company, legally holding all the equity interest in the Company. Appendix 1 sets forth the capital contribution amount and the shareholding percentage of each Company Shareholder in the registered capital of the Company as of the date when this Agreement is signed.

 

(2)   To the extent not in violation of the PRC Law, the Company Shareholders intend to transfer all their respective equity interest in the Company to the WFOE and/or any other entity or individual designated by the WFOE, and the WFOE intends to accept such transfer.

 

(3)   To the extent not in violation of the PRC Law, the Company intends to transfer its assets to the WFOE and/or any other entity or individual designated by the WFOE, and the WFOE intends to accept such transfer.

 

(4)   For the purpose of the foregoing equity interest and asset transfer, the Company Shareholders and the Company agree to grant to the WFOE the exclusive and irrevocable Equity Transfer Option (as defined below) and Asset Purchase Option (as defined below) respectively. Pursuant to such Equity Transfer Option and Asset Purchase Option, at the WFOE’s request, the Shareholders or the Company shall, to the extent permitted by the PRC Law, transfer the Option Equity (as defined below) or the Company Assets (as defined below) to the WFOE and/or any other entity or individual designated by the WFOE pursuant to the provisions of this Agreement.

 

 

(5)   The Company agrees that the Company Shareholders grant the Equity Transfer Option to the WFOE pursuant to the provisions of this Agreement.

 

(6)   The Company Shareholders agree that the Company grants the Asset Purchase Option to the WFOE pursuant to the provisions of this Agreement.

 

NOW, THEREFORE, the Parties, after consultations, hereby agree as follows:

 

Article 1 Definitions

 

1.1  As used in this Agreement, the following terms shall be interpreted to have the following meanings, unless otherwise interpreted pursuant to the context:

 

“Equity Transfer Option” shall mean the option to purchase the equity interest in the Company as granted to the WFOE by the Company Shareholders pursuant to the terms and conditions of this Agreement.

 

“Asset Purchase Option” shall mean the option to purchase any Company Assets as granted to the WFOE by the Company pursuant to the terms and conditions of this Agreement.

 

“Option Equity” shall mean, in respect of each of the Company Shareholders, all the equity interest held by him in the Company Registered Capital respectively; in respect of all the Company Shareholders, the equity interest covering 100% of the Company Registered Capital.

 

“Company Registered Capital” shall mean the registered capital of the Company as of the signing date of this Agreement, i.e. RMB15,000,000, which shall include any expanded registered capital as a result of any capital increase in any form within the term of this Agreement.

 

“Transferred Equity” shall mean the equity interest in the Company which the WFOE has the right to request either of the Company Shareholders to transfer to it or its designated entity or individual in accordance with Article 3 hereof when the WFOE exercises its Equity Transfer Option, the quantity of which may be all or part of the Option Equity and the specific amount of which shall be determined by the WFOE at its sole discretion in accordance with the then-effective PRC Law and based on its commercial consideration.

 

“Transferred Assets” shall mean the Company Assets which the WFOE has the right to require the Company to transfer to it or its designated entity or individual in accordance with Article 3 hereof when the WFOE exercises its Asset Purchase Option, the quantity of which may be all or part of the Company Assets and the details of which shall be determined by the WFOE at its sole discretion in accordance with the then-effective PRC Law and based on its commercial consideration.

 

“Exercise of Option” shall mean the exercising of the Equity Transfer Option or the Asset Purchase Option by the WFOE.

 

 

“Transfer Price” shall mean all the consideration that the WFOE or its designated entity or individual is required to pay to the Company Shareholders or the Company in order to obtain the Transferred Equity or the Transferred Assets upon each Exercise of Option.

 

“Business Permits” shall mean any approvals, permits, filings, registrations, etc which the Company is required to have for legally and validly operating all its businesses, including without limitation, Business License of Corporate Legal Person, Operation Permit of Value-added Telecommunication Service and such other relevant permits and licenses as required by the then-effective PRC Law.

 

“Company Assets” shall mean all the tangible and intangible assets which the Company owns or has the right to dispose of during the valid term of this Agreement, including without limitation, any immoveable and moveable assets, intellectual property rights such as trademarks, copyrights, patents, know-how, domain names and software use rights, and any investment interest.

 

“Material Asset” shall mean any asset which has a book value of RMB100,000 or more or has a material effect on the business operations of any Party.

 

“Material Agreement” shall mean, in respect of the Company, any agreement to which the Company is a party and which has a material effect on the business or assets of the Company; in respect of a Subsidiary, any agreement to which such Subsidiary is a party and which has a material effect on the business or assets of such Subsidiary.

 

“PRC” shall mean the People’s Republic of China, which, for purpose of this Agreement only, excludes Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan.

 

“PRC Law” shall mean the then-effective laws, administrative regulations, administrative rules, local regulations, judicial interpretations and other binding regulatory documents of the PRC.

 

“Exercise Notice” shall have the meaning prescribed to such term in Article 3.7 hereof.

 

“Subsidiary” shall have the meaning prescribed to such term in Article 6.1.10 hereof.

 

“Confidential Information” shall have the meaning prescribed to such term in Article 8.1 hereof.

 

“Disclosing Party” shall have the meaning prescribed to such term in Article 8.1 hereof.

 

“Receiving Party” shall have the meaning prescribed to such term in Article 8.1 hereof.

 

“Defaulting Party” shall have the meaning prescribed to such term in Article 11.1 hereof.

 

“Default” shall have the meaning prescribed to such term in Article 11.1 hereof.

 

“Available Rights” shall have the meaning prescribed to such term in Article 12.5 hereof.

 

 

1.2  The references to any PRC Law herein shall be deemed:

 

(1)   simultaneously to include the references to the amendments, changes, supplements and restatement of such PRC Law, irrespective of whether they take effect before or after the execution of this Agreement; and

 

(2)   simultaneously to include the references to other decisions, notices and regulations enacted in accordance therewith or effective as a result thereof.

 

1.3  Except as otherwise stated in the context herein, all references to an Article, clause, item or paragraph shall refer to the corresponding part of this Agreement.

 

Article 2 Grant of Equity Transfer Option and Asset Purchase Option

 

2.1  The Company Shareholders hereby severally and jointly agree to grant the WFOE an irrevocable, unconditional and exclusive Equity Transfer Option. Pursuant to such Equity Transfer Option, the WFOE is entitled to, to the extent permitted by the PRC Law, request the Company Shareholders to transfer the Option Equity to the WFOE or its designated entity or individual according to the terms and conditions hereunder. The WFOE also agrees to accept such Equity Transfer Option.

 

2.2  The Company hereby agrees that the Company Shareholders grant such Equity Transfer Option to the WFOE according to Article 2.1 above and other provisions of this Agreement.

 

2.3  The Company hereby agrees to grant the WFOE an irrevocable, unconditional and exclusive Asset Purchase Option. Pursuant to such Asset Purchase Option, the WFOE is entitled to, to the extent permitted by the PRC Law, request the Company to transfer all or part of the Company Assets to the WFOE or its designated entity or individual according to the terms and conditions hereunder. The WFOE also agrees to accept such Asset Purchase Option.

 

2.4  The Company Shareholders hereby severally and jointly agree that the Company grants such Asset Purchase Option to the WFOE according to Article 2.3 above and other provisions of this Agreement.

 

Article 3 Method of Exercise of Option

 

3.1. Subject to the terms and conditions of this Agreement, the WFOE shall have the absolute sole discretion to determine the specific time, method and times of its Exercise of Option to the extent permitted by the PRC Law.

 

3.2. Subject to the terms and conditions of this Agreement and to the extent not in violation of the then-effective PRC Law, the WFOE shall have the right to, at any time, request to acquire the Transferred Equity from the Company Shareholders by itself or through any other entity or individual designated by it.

 

3.3. Subject to the terms and conditions of this Agreement and to the extent not in violation of the then-effective PRC Law, the WFOE shall have the right to, at any time, request to acquire the Transferred Assets from the Company by itself or through any other entity or individual designated by it.

 

 

3.4. With regard to the Equity Transfer Option, at each Exercise of Option, the WFOE shall have the right to arbitrarily determine the amount of the Transferred Equity to be transferred by the Company Shareholders to the WFOE and/or any other entity or individual designated by it. The Company Shareholders shall respectively transfer the Transferred Equity to the WFOE and/or any other entity or individual designated by it in the amount requested by the WFOE. The WFOE and/or any other entity or individual designated by it shall pay the Transfer Price with respect to the Transferred Equity acquired at each Exercise of Option to the Company Shareholder transferring such Transferred Equity.

 

3.5. With regard to the Asset Purchase Option, at each Exercise of Option, the WFOE shall have the right to determine the specific Company Assets to be transferred by the Company to the WFOE and/or any other entity or individual designated by it. The Company shall transfer the Transferred Assets to the WFOE and/or any other entity or individual designated by it in accordance with the WFOE’s requirement. The WFOE and/or any other entity or individual designated by it shall pay the Transfer Price to the Company with respect to the Transferred Assets acquired at each Exercise of Option.

 

3.6. At each Exercise of Option, the WFOE may acquire the Transferred Equity or Transferred Assets by itself or designate any third party to acquire all or part of the Transferred Equity or Transferred Assets.

 

3.7. Having decided each Exercise of Option, the WFOE shall issue to the Company Shareholders or the Company a notice for exercising the Equity Transfer Option or a notice for exercising the Asset Purchase Option (the “Exercise Notice”, the form of which are set out in Annex 2 and Annex 3 hereto). The Company Shareholders or the Company shall, upon receipt of the Exercise Notice, forthwith transfer all the Transferred Equity or Transferred Assets in accordance with the Exercise Notice to the WFOE and/or any other entity or individual designated by the WFOE in such method as described in Article 3.4 or Article 3.5 hereof.

 

Article 4 Transfer Price

 

4.1. With regard to the Equity Transfer Option, the total Transfer Price to be paid by the WFOE or any other entity or individual designated by the WFOE to each Company Shareholder at each Exercise of Option by the WFOE shall be the capital contribution mirrored by the corresponding Transferred Equity in the Company Registered Capital. But if the lowest price permitted by the then-effective PRC Law is higher than the above capital contribution, the Transfer Price shall be the lowest price permitted by the PRC Law.

 

4.2. With regard to the Asset Purchase Option, the Transfer Price to be paid by the WFOE or any other entity or individual designated by the WFOE to the Company at each Exercise of Option by the WFOE shall be the net book value of the relevant Transferred Assets. But if the lowest price permitted by the then-effective PRC Law is higher than the net book value of the Transferred Assets, the Transfer Price shall be the lowest price permitted by the PRC Law.

 

 

Article 5 Representations and Warranties

 

5.1  The Company Shareholders hereby severally and jointly represent and warrant that:

 

5.1.1. Each of the Company Shareholders is a Chinese citizen with full capacity. Each of them has the full and independent legal status and legal capacity to execute, deliver and perform this Agreement and may act independently as a party to lawsuit.

 

5.1.2. The Company is a limited liability company duly registered and legitimately existing under the PRC Law with an independent legal personality. It has the full and independent legal status and legal capacity to execute, deliver and perform this Agreement and may act independently as a party to lawsuit.

 

5.1.3. Each of them has the full power and authority to execute, deliver and perform this Agreement and all other documents relating to the transaction contemplated hereby and to be executed by him. Each of them has the full power and authority to consummate the transaction contemplated hereby.

 

5.1.4. This Agreement is legally and duly executed and delivered by the Company Shareholders. This Agreement shall constitute their legal and binding obligations and shall be enforceable against them in accordance with the terms of this Agreement.

 

5.1.5. The Company Shareholders are the legitimate owners of the Option Equity as of the effective date of this Agreement, and except for the rights created under the Equity Pledge Agreement and Shareholder Voting Rights Proxy Agreement executed by the Company, the WFOE and the Company Shareholders on the date hereof, the Option Equity is free from and clear of any lien, pledge, claim and other encumbrances and third party rights. Pursuant to this Agreement, the WFOE and/or any other entity or individual designated by it may, after the Exercise of Option, acquire a good title to the Transferred Equity, free from and clear of any lien, pledge, claim and other encumbrances or third party rights.

 

5.1.6. To the knowledge of the Company Shareholders, the Company Assets are free from and clear of any lien, mortgage, claim and other encumbrances and third party rights. Pursuant to this Agreement, the WFOE and/or any other entity or individual designated by it may, after the Exercise of Option, acquire a good title to the Company Assets, free from and clear of any lien, mortgage, claim and other encumbrances or third party rights.

 

5.1.7. The execution, delivery and performance by the Company Shareholders of this Agreement and the consummation by the Company Shareholders of the transaction contemplated hereby do not violate any PRC Law or any agreement, contract or other arrangement with any third party by which they are bound.

 

5.2  The Company hereby represents and warrants that:

 

 

5.2.1  The Company is a limited liability company duly registered and legitimately existing under the PRC Law with an independent legal personality. It has the full and independent legal status and legal capacity to execute, deliver and perform this Agreement and may act independently as a party to lawsuit.

 

5.2.2  The Company has the full internal corporate power and authority to execute, deliver and perform this Agreement and all other documents relating to the transaction contemplated hereby and to be executed by it. It has the full power and authority to consummate the transaction contemplated hereby.

 

5.2.3  This Agreement is legally and duly executed and delivered by the Company. This Agreement shall constitute the legal and binding obligation against it.

 

5.2.4  The Company Assets are free from and clear of any lien, mortgage, claim and other encumbrances and third party rights. Pursuant to this Agreement, the WFOE and/or any other entity or individual designated by it may, after the Exercise of Option, acquire a good title to the Company Assets, free from and clear of any lien, mortgage, claim and other encumbrances or third party rights.

 

5.2.5  The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transaction contemplated hereby do not violate any PRC Law or any agreement, contract or other arrangement with any third party by which it is bound.

 

5.3  The WFOE hereby represents and warrants that:

 

5.3.1. The WFOE is a wholly foreign-owned enterprise duly registered and legitimately existing under the PRC Law with an independent legal personality. The WFOE has the full and independent legal status and legal capacity to execute, deliver and perform this Agreement and may act independently as a party to lawsuit.

 

5.3.2. The WFOE has the full internal corporate power and authority to execute, deliver and perform this Agreement and all other documents relating to the transaction contemplated hereby and to be executed by it. It has the full power and authority to consummate the transaction contemplated hereby.

 

5.3.3. This Agreement is legally and duly executed and delivered by the WFOE. This Agreement shall constitute the legal and binding obligation against it.

 

Article 6 Undertakings by the Company Shareholders

 

Each of the Company Shareholders hereby severally undertakes that:

 

6.1  Within the valid term of this Agreement, without the WFOE’s prior written consent:

 

6.1.1. any Company Shareholder shall not transfer or otherwise dispose of any Option Equity or create any encumbrance or other third party rights on any Option Equity;

 

 

6.1.2. he shall not increase or decrease the Company Registered Capital or cause or permit the Company to be divided or merged with any other entity;

 

6.1.3. he shall not dispose of or cause the management of the Company to dispose of any Material Asset (other than in the ordinary course of business), or create any encumbrance or other third party rights on any Material Asset;

 

6.1.4. he shall not terminate or cause the management of the Company to terminate any Material Agreement entered into by the Company, or enter into any other agreement in conflict with the existing Material Agreements;

 

6.1.5. he shall not appoint or dismiss and replace any director or supervisor of the Company or any other management personnel of the Company who shall be appointed or dismissed by the Company Shareholders;

 

6.1.6. he shall not cause the Company to declare the distribution of or in practice release any distributable profit, dividend, share profit or share interest;

 

6.1.7. he shall ensure that the Company validly exists and is not terminated, liquidated or dissolved;

 

6.1.8. he shall not amend the articles of association of the Company;

 

6.1.9. he shall ensure that the Company will not lend or borrow any money, or provide any guaranty or engage in security activities in any other form, or bear any substantial obligations other than in the ordinary course of business; and

 

6.1.10.  it shall not cause the Company or the management of the Company to approve any of the following acts of any of the Company’s subsidiaries or affiliates (collectively, the “Subsidiaries”):

 

(a)   increase or decrease any Subsidiary’s registered capital or cause or permit any Subsidiary to be divided or merged with any other entity;

 

(b)   dispose of or cause the management of the Subsidiaries to dispose of any Material Asset of any Subsidiary (other than in the ordinary course of business), or create any encumbrance or other third party rights on such assets;

 

(c)   terminate or cause the management of the Subsidiaries to terminate any Material Agreement entered into by any Subsidiary, or enter into any other agreement in conflict with the existing Material Agreements;

 

(d)   appoint or dismiss and replace any director or supervisor of any Subsidiary or any other management personnel of such Subsidiary who shall be appointed or dismissed by the Company;

 

(e)   terminate, liquidate or dissolve any Subsidiary or act in any way that damages or is likely to damage the valid existence of any Subsidiary;

 

(f)    amend the articles of association of any Subsidiary; and

 

 

(g)   lend or borrow any money, or provide any guaranty or engage in security activities in any other form, or bear any substantial obligations other than in the ordinary course of business.

 

6.2  Within the valid term of this Agreement, he shall use his best endeavor to develop the business of the Company and ensure that the Company’s operations are legal and in compliance with the regulations, and he will not engage in any act or omission which may damage the Company’s (including the Subsidiaries’) assets and goodwill or affect the validity of the Business Permits of the Company.

 

6.3  Within the valid term of this Agreement, he shall timely notify the WFOE of any circumstances that may have a material adverse effect on the existence, business operations, financial conditions, assets or goodwill of the Company (including the Subsidiaries) and timely take all the measures approved by the WFOE to remove such adverse circumstances or take effective remedial measures with respect thereto.

 

6.4  Once the WFOE gives the Exercise Notice,

 

6.4.1. he shall promptly convene a shareholders’ meeting, pass shareholders’ resolutions and take all other necessary actions to approve any Company Shareholder or the Company to transfer all the Transferred Equity or the Transferred Assets at the Transfer Price to the WFOE and/or any other entity or individual designated by the WFOE, and waive any preemptive right to purchase enjoyed by him (if any);

 

6.4.2. he shall promptly enter into an equity transfer agreement with the WFOE and/or any other entity or individual designated by the WFOE to transfer all the Transferred Equity at the Transfer Price to the WFOE and/or any other entity or individual designated by the WFOE and provide necessary support to the WFOE (including provision and execution of all relevant legal documents, performing all government approval and registration procedures and assuming all relevant obligations) in accordance with the WFOE’s requirements and the PRC Law so that the WFOE and/or any other entity or individual designated by the WFOE may acquire all the Transferred Equity, free from and clear of any legal defect or any encumbrance, third party restriction or any other restrictions on the Transferred Equity.

 

6.5  If the total Transfer Price obtained by any Company Shareholder with respect to the Transferred Equity held by him is higher than the capital contribution corresponded with such Transferred Equity in the Company Registered Capital, or he receives any form of profit distribution, share profit, share interest or dividend from the Company, then such Company Shareholder agrees to, to the extent no in violation of the PRC Law, waive the premium earnings and any profit distribution, share profit, share interest or dividend (after the deduction of relevant taxes) and the WFOE is entitled thereto. Otherwise, such Company Shareholder shall compensate the WFOE and/or any other entity or individual designated by the WFOE for any loss incurred as a result thereof.

 

 

Article 7 Undertakings by the Company

 

7.1    The Company hereby undertakes that:

 

7.1.1.    If any consent, permit, waiver or authorization by any third party, or any approval, permit or exemption by any government authority, or any registration or filing formalities (if required by law) with any government authority needs to be obtained or handled with respect to the execution and performance of this Agreement and the grant of the Equity Transfer Option or Asset Purchase Option hereunder, the Company shall endeavor to assist in satisfying the above conditions.

 

7.1.2.    Without the WFOE’s prior written consent, the Company shall not assist or permit the Company Shareholders to transfer or otherwise dispose of any Option Equity or create any encumbrance or other third party rights on any Option Equity.

 

7.1.3.    Without the WFOE’s prior written consent, the Company shall not transfer or otherwise dispose of any Material Asset (other than in the ordinary course of business) or create any encumbrance or other third party rights on any Company Assets.

 

7.1.4.    The Company shall not do or permit to be done any behavior or action that may adversely affect the interests of the WFOE under this Agreement, including without limitation, any behavior and action that is subject to Article 6.1.

 

7.2    With the valid term of this Agreement, once the WFOE gives the Exercise Notice,

 

7.2.1     it shall promptly cause the Company Shareholders to convene a shareholders’ meeting, pass shareholders’ resolutions and take all other necessary actions to approve the Company to transfer all the Transferred Assets at the Transfer Price to the WFOE and/or any other entity or individual designated by the WFOE;

 

7.2.2     it shall promptly enter into an asset transfer agreement with the WFOE and/or any other entity or individual designated by the WFOE to transfer all the Transferred Assets at the Transfer Price to the WFOE and/or any other entity or individual designated by the WFOE, and cause the Company Shareholders to provide necessary support to the WFOE (including provision and execution of all relevant legal documents, performing all government approval and registration procedures and assuming all relevant obligations) in accordance with the WFOE’s requirements and the PRC Law so that the WFOE and/or any other entity or individual designated by the WFOE may acquire all the Transferred Assets, free from and clear of any legal defect or any encumbrance, third party restriction or any other restrictions on the Transferred Assets.

 

Article 8 Confidentiality Obligations

 

8.1    Regardless of whether this Agreement is terminated or not, each Party shall keep strictly confidential all the business secrets, proprietary information, customer information and all other information of a confidential nature about the other Parties known by it during the execution and performance of this Agreement (collectively, the “Confidential Information”). 

 

 

Unless a prior written consent is obtained from the Party disclosing the Confidential Information (the “Disclosing Party”) or unless it is required to be disclosed to third parties according to the stipulation of relevant laws and regulations or the requirement of the place where its affiliate is listed on a stock exchange, the Party receiving the Confidential Information (the “Receiving Party”) shall not disclose to any third party any Confidential Information. The Receiving Party shall not use any Confidential Information other than for the purpose of performing this Agreement.

 

8.2    The following information shall not be deemed part of the Confidential Information:

 

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

 

(b) any information entering the public domain not attributable to the fault of the Party receiving the information; or

 

(c)  any information lawfully acquired by the Party receiving the information through other sources after its receipt of such information.

 

8.3    For purpose of performing this Agreement, the Receiving Party may disclose the Confidential Information to its relevant employees, agents or professionals retained by it. However, the Receiving Party shall ensure that the aforesaid persons shall comply with the relevant terms and conditions of this Article 8. In addition, the Receiving Party shall be responsible for any liability incurred as a result of such persons’ breach of the relevant terms and conditions of this Article 8.

 

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

 

Article 9 Term of Agreement

 

This Agreement shall become effective immediately upon the signing of this agreement by all parties. This Agreement shall terminate after all the Option Equity and the Company Assets are lawfully transferred to the WFOE and/or any other entity or individual designated by the WFOE pursuant to the provisions of this Agreement.

 

Article 10 Notices

 

10.1     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.

 

10.2  If any of such notice or other correspondences is transmitted by facsimile or telex, it shall be treated as delivered immediately upon transmission; if delivered in person, it shall be treated as delivered at the time of delivery; if posted by mail, it shall be treated as delivered five (5) days after posting.

 

 

Article 11 Defaulting Liability

 

11.1     The Parties agree and confirm that, if any of the Parties (the “Defaulting Party”) substantially violates any agreement herein or substantially fails to perform or delays performance of any of the obligations hereunder, such violation, failure or delay shall constitute a default under this Agreement (a “Default”). The non-defaulting Party shall have the right to request the Defaulting Party to rectify or take remedial actions within a reasonable period. If the Defaulting Party fails to rectify such Default or take remedial actions within such reasonable period or within ten (10) days after the non-defaulting Party notifies the Defaulting Party in writing requiring the Default to be rectified, then the non-defaulting Party is entitled to decide at its own discretion that:

 

11.1.1.  if any Company Shareholder or the Company is the Defaulting Party, the WFOE shall be entitled to terminate this Agreement and require the Defaulting Party to indemnify the damages;

 

11.1.2.  if the WFOE is the Defaulting Party, the non-defaulting Party shall be entitled to require the Defaulting Party to indemnify the damages, but unless otherwise provided for by the PRC Law, the non-defaulting Party has no right to terminate or cancel this Agreement in any circumstances.

 

11.2  Notwithstanding any other provision herein, the effect of this Article 11 shall not be affected by the termination of this Agreement.

 

Article 12 Miscellaneous

 

12.1     This Agreement is written in Chinese and executed in four (4) originals, with one (1) original to be retained by each Party hereto.

 

12.2     The execution, effectiveness, performance, revision, interpretation and termination of this Agreement shall be governed by the PRC Law.

 

12.3     Any dispute arising out of and in connection with this Agreement shall be resolved through consultations among the Parties. In case the Parties fail to reach agreement within thirty (30) days after the dispute arises, such dispute shall be submitted to China International Economic and Trade Arbitration Commission Shanghai Commission for arbitration in Shanghai in accordance with such Commission’s arbitration rules in effect at the time of applying for arbitration, and the arbitration award shall be final and binding on the Parties.

 

12.4     None of the rights, powers or remedies granted to any Party by any provision herein shall preclude any other rights, powers or remedies available to such Party at law and under the other provisions of this Agreement. In addition, the exercising by one Party of any of its rights, powers and remedies shall not exclude such Party from exercising any of its other rights, powers and remedies.

 

 

12.5     No failure or delay by a Party in exercising any rights, powers and remedies available to it hereunder or at law (the “Available Rights”) shall result in a waiver thereof, nor shall the waiver of any single or partial exercise of the Available Rights shall exclude such Party from exercising such rights in any other way and exercising the other Available Rights.

 

12.6     The headings of the provisions herein are for reference only, and in no event shall such headings be used for or affect the interpretation of the provisions hereof.

 

12.7     Each provision contained herein shall be severable and independent from each of the other provisions. If any one or more provisions herein become(s) invalid, illegal or unenforceable at any time, the validity, legality and enforceability of the remaining provisions herein shall not be affected as a result thereof.

 

12.8     This Agreement, when signed, shall supersede any prior other legal documents executed by and among the Parties with respect to the subject matter hereof. Any amendment or supplement hereto shall be made in writing and shall become effective only upon due execution by the Parties hereto.

 

12.9     Without the WFOE’s prior written consent, each Company Shareholder or the Company shall not transfer any of its rights and/or obligations hereunder to any third party. The Company 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 Company Shareholders and the Company.

 

12.10   This Agreement shall be binding on the legal assignees or successors of the Parties.

 

[The remainder of this page intentionally left blank]

 

 

[SIGNATURE PAGE]

 

IN WITNESS WHEREOF, the following Parties have executed this Exclusive Call Option Agreement as of the date first above written.

 

	
Zuyu DING
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Zuyu DING
    	
 
    
	
 
    	
 
    
	
Weijie MA
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Weijie   MA
    	
 
    
	
 
    	
 
    
	
Beijing Maiteng Fengshun Science and Technology Co., Ltd.
    	
 
    
	
(Seal)
    	
 
    
	
 
    	
 
    
	
By: 
    	
/seal/
    	
 
    
	
Name: 
    	
 
    	
 
    
	
Title: 
    	
 
    	
 
    
	
 
    	
 
    
	
Beijing Jiajujiu E-Commerce Co., Ltd.
    	
 
    
	
(Seal)
    	
 
    
	
 
    	
 
    
	
By: 
    	
/seal/
    	
 
    
	
Name: 
    	
 
    	
 
    
	
Title: 
    	
 
    	
 
    

 

 

Annex 1:

 

Company’s General Information

 

	
Company name:
    	
 
    	
Beijing Jiajujiu E-Commerce Co., Ltd.
    
	
 
    	
 
    	
 
    
	
Registered address:
    	
 
    	
Room 1513, 15/F, No. 5 Building, No. 1 Court,   Shangdi 10th Street, Haidian District, Beijing
    
	
 
    	
 
    	
 
    
	
Registered capital:
    	
 
    	
RMB15,000,000
    
	
 
    	
 
    	
 
    
	
Legal representative:
    	
 
    	
Dong WEN
    
	
 
    	
 
    	
 
    
	
Shareholding structure:
    	
 
    	
 
    

 

	
Shareholder’s name
    	
 
    	
Contribution in
   registered capital
    	
 
    	
Percentage of
   contribution
    	
 
    	
Method of
   contribution
    	
 
    
	
Zuyu DING
    	
 
    	
RMB10,500,000
    	
 
    	
70%
    	
 
    	
Currency
    	
 
    
	
Weijie MA
    	
 
    	
RMB4,500,000
    	
 
    	
30%
    	
 
    	
Currency
    	
 
    
	
Total
    	
 
    	
RMB15,000,000
    	
 
    	
100%
    	
 
    	
/
    	
 
    

 

 

Annex 2:

 

Form of Exercise Notice

 

To: [Name of the Company Shareholder]

 

WHEREAS, we, Beijing Jiajujiu E-Commerce Co., Ltd. (the “Company”), [name of the other Company Shareholder] and you entered into an Exclusive Call Option Agreement (the “Option Agreement”) on April 1, 2012 and reached an agreement that you shall transfer the equity interest you hold in the Company to us or any third party designated by us at our request to the extent permitted by the PRC laws and regulations.

 

Therefore, we hereby give this notice to you as follows:

 

We hereby request to exercise the Equity Transfer Option under the Option Agreement and we/[name of company/individual] designated by us will acquire the [·]% of the equity interest you hold in the Company (the “Proposed Acquired Equity”). Upon your receipt of this notice, you shall immediately transfer all the Proposed Acquired Equity to us/[name of designated company/individual] pursuant to the provisions of the Option Agreement.

 

	
Regards,
    	
 
    
	
 
    	
 
    
	
 
    	
Beijing Maiteng Fengshun Science and Technology Co., Ltd.
    
	
 
    	
(Seal)
    
	
 
    	
Authorized representative:
    
	
 
    	
Date:

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