Document:

Exhibit
10.1

 

FIFTH AMENDMENT TO SECOND AMENDED AND
RESTATED WAREHOUSING CREDIT AND SECURITY AGREEMENT

 

THIS FIFTH AMENDMENT
TO SECOND AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITY AGREEMENT (this “Fifth Amendment”) is made effective
as of the 23rd day of April, 2020, by and among WALKER & DUNLOP, LLC, a Delaware limited liability company (“Borrower”),
WALKER & DUNLOP, INC., a Maryland corporation (“Parent”), and PNC BANK, NATIONAL ASSOCIATION (“Lender”).

 

R E C I T A L S

 

WHEREAS, Lender, Borrower
and Parent are parties to that certain Second Amended and Restated Warehousing Credit and Security Agreement, dated as of September
11, 2017, by and among Borrower, Parent, and Lender, as amended by that First Amendment to Second Amended and Restated Warehousing
Credit and Security Agreement, dated as of September 15, 2017, that Second Amendment to Second Amended and Restated Warehousing
Credit and Security Agreement, dated as of September 10, 2018, that Third Amendment to Second Amended and Restated Warehousing
Credit and Security Agreement, dated May 20, 2019, and that Fourth Amendment to Second Amended and Restated Warehousing Credit
and Security Agreement, dated September 6, 2019 (as amended, the “Credit Facility Agreement”), whereby upon
the satisfaction of certain terms and conditions set forth therein, the Lender agreed to make Warehousing Advances from time to
time, up to the Warehousing Credit Limit (each such term as defined in the Credit Facility Agreement).

 

WHEREAS, Borrower has
requested, and Lender has agreed, pursuant to the terms hereof, to modify certain terms of the Credit Facility Agreement as set
forth in this Fifth Amendment.

 

NOW, THEREFORE, for and
in consideration of the premises, the mutual entry of this Fifth Amendment by the parties hereto and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

 

Section 1.    Recitals.
The Recitals are hereby incorporated into this Fifth Amendment as a substantive part hereof.

 

Section 2.   Definitions.
Terms used herein and not otherwise defined shall have the meanings set forth in the Credit Facility Agreement.

 

Section 3.   Amendments
to Credit Facility Agreement. The Credit Facility Agreement is hereby amended as follows:

 

(a)              
The Warehousing Note referenced in Section 1.3 and attached to the Credit Facility Agreement as Exhibit A, is hereby
replaced with the Seventh Amended and Restated Warehousing Note attached to this Fifth Amendment as Exhibit A.

 

(b)              
Section 3.4 of the Credit Facility Agreement is hereby amended and restated as follows:

 

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“3.4       Facility Fee

 

Borrower shall pay to Lender an
annual facility fee in an amount equal to ten (10) basis points of the Standard Warehousing Credit Limit (the “Facility
Fee”), to be paid quarterly in arrears, commencing on the first Business Day of each Calendar Quarter following the Closing
Date during the term of this Agreement. In addition to the foregoing, Borrower shall pay to Lender an annual facility fee in an
amount equal to ten (10) basis points of the amount for which the Standard Warehousing Credit Limit is temporarily increased pursuant
to the terms of the first paragraph of Section 3.13 hereof (the “Temporary Facility Fee”), with such Temporary
Facility Fee to be paid in arrears and calculated on a pro rata basis based on the number of calendar days such temporary increase
of the Warehousing Credit Limit remains in effect.

 

Additionally, in the event Borrower
exercises its right under the second paragraph of Section 3.13 and seeks an increase of the Maximum Warehousing Credit Limit up
to the Limited Bulge Credit Limit, Borrower shall pay to Lender a bulge commitment fee in an amount calculated as follows: ten
(10) basis points (0.001) multiplied by the portion of the Bulge Increase Amount actually drawn as a Warehousing Advance hereunder,
then divided by 365 (for the number of days in the year), then multiplied for the number of days that the portion of the Bulge
Increase Amount is actually drawn as a Warehousing Advance hereunder remains outstanding (the “Bulge Commitment Fee”).
For example, if the Bulge Increase Amount is $1,200,000,000 and such amount is fully drawn as a Warehousing Advance and remains
outstanding for 60 days, the additional commitment fee would be $197,260.27, based on the following calculation: .001 x $1,200,000,000
= 1,200,000; 1,200,000/365 = 3,287.71 , 3,287.71 x 60 = $197,260.27. The Bulge Commitment Fee shall be payable in full upon repayment
of the Warehousing Advances drawn with respect to the Bulge Increase Amount.”

 

(c)              
Section 3.13 of the Credit Facility Agreement is hereby amended and restated as follows:

 

“3.13    Increases
to Standard Warehousing Credit Limit

 

Borrower shall have the right,
upon no less than five days prior written notice to Lender, during the term of this Agreement, to request one or more incremental
increases to the Standard Warehousing Credit Limit, in amounts of One Hundred Million Dollars ($100,000,000.00) each (each is herein
a “Minimum Incremental Amount”), up to the Maximum Warehousing Credit Limit. Borrower’s notice shall indicate
(i) the amount of the incremental increase of the Standard Warehousing Credit Limit and (ii) the effective date for the increase
of the Standard Warehousing Credit Limit. Any incremental increase shall be made at the sole discretion of Lender. Provided such
incremental increase is approved by Lender, said incremental increase of the Standard Warehousing Credit Limit shall remain in
effect for a period of forty five (45) days following such effective date.

 

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Borrower shall have the additional
one time right, upon no less than five days prior written notice to Lender, to request an increase of the Maximum Warehousing Credit
Limit up to the Limited Bulge Credit Limit. Borrower’s notice shall indicate (i) the amount of the increase of the Maximum
Warehousing Credit Limit (the “Bulge Increase Amount”), and (ii) the effective date for the increase of the
Maximum Warehousing Credit Limit. The increase of the Maximum Warehousing Credit Limit by the Bulge Increase Amount shall remain
in effect for a period of sixty (60) days following the effective date for said increase”

 

(d)              
The following defined term set forth in Section 13.1 of the Credit Facility Agreement is hereby deleted in its entirety
and replaced with the following:

 

‘“Limited Bulge
Credit Limit” means Three Billion Two Hundred Million Dollars ($3,200,000,000.00).’

 

‘“Warehousing Credit
Limit” means the Standard Warehousing Credit Limit, the Maximum Warehousing Credit Limit, or the Limited Bulge Credit
Limit, as applicable.’

 

Section 4.        Ratification,
No Novation, Effect of Modifications. Except as may be amended or modified hereby, the terms of the Credit Facility Agreement
are hereby ratified, affirmed and confirmed and shall otherwise remain in full force and effect. Nothing in this Fifth Amendment
shall be construed to extinguish, release, or discharge or constitute, create or effect a novation of, or an agreement to extinguish,
release or discharge, any of the obligations, indebtedness and liabilities of Borrower or any other party under the provisions
of the Credit Facility Agreement or any of the other Loan Documents, unless specifically herein provided.

 

Section 5.       Amendments.
This Fifth Amendment may be amended or supplemented by and only by an instrument executed and delivered by each party hereto.

 

Section 6.       Waiver.
The Lenders shall not be deemed to have waived the exercise of any right which they hold under the Credit Facility Agreement unless
such waiver is made expressly and in writing (and no delay or omission by any Lender in exercising any such right shall be deemed
a waiver of its future exercise). No such waiver made as to any instance involving the exercise of any such right shall be deemed
a waiver as to any other such instance, or any other such right. Without limiting the operation and effect of the foregoing provisions
hereof, no act done or omitted by any Lender pursuant to the powers and rights granted to it hereunder shall be deemed a waiver
by any Lender of any of its rights and remedies under any of the provisions of the Credit Facility Agreement, and this Fifth Amendment
is made and accepted without prejudice to any of such rights and remedies.

 

Section 7.       Governing
Law. This Fifth Amendment shall be given effect and construed by application of the law of the Commonwealth of Pennsylvania.

 

Section 8.       Headings.
The headings of the sections, subsections, paragraphs and subparagraphs hereof are provided herein for and only for convenience
of reference, and shall not be considered in construing their contents.

 

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Section 9.        Severability.
No determination by any court, governmental body or otherwise that any provision of this Fifth Amendment or any amendment hereof
is invalid or unenforceable in any instance shall affect the validity or enforceability of (i) any other such provision or (ii)
such provision in any circumstance not controlled by such determination. Each such provision shall be valid and enforceable to
the fullest extent allowed by, and shall be construed wherever possible as being consistent with, applicable law.

 

Section 10.      Binding
Effect. This Fifth Amendment shall be binding upon and inure to the benefit of Borrower, Parent, Lender, and their respective
permitted successors and assigns.

 

Section 11.      Counterparts.
This Fifth Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and all of
which shall constitute one and the same instrument.

 

[REMAINDER OF PAGE
INTENTIONALLY BLANK]

 

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IN WITNESS WHEREOF,
each of the parties hereto have executed and delivered this Fifth Amendment under their respective seals as of the day and year
first written above.

 

	 	WALKER & DUNLOP, LLC, as Borrower
	 	 
		By:	/s/ Stephen P. Theobald
	 	Name:	Stephen P. Theobald
	 	Title:	Executive Vice President and

                                                                  Chief Financial Officer

 

	 	WALKER & DUNLOP, INC., as Parent
	 	 
		By:	/s/ Stephen P. Theobald
	 	Name:	Stephen P. Theobald
	 	Title:	Executive Vice President and

                                                                  Chief Financial Officer

 

	 	PNC BANK, NATIONAL ASSOCIATION,
 as Lender
	 	 	 
		By:	/s/ Steven Pachla
	 	Name:	Steven Pachla
	 	Title:	Vice President

 

     

     

    

 

EXHIBIT A

 

SEVENTH AMENDED AND RESTATED WAREHOUSING
NOTE

 

	$3,200,000,000.00	___________________,2020

 

WALKER & DUNLOP,
LLC, a Delaware limited liability company (“Borrower”) previously delivered to PNC Bank, National Association
(together with its successors and assigns, “Lender”), that certain Sixth Amended and Restated Warehousing Note,
dated September 15, 2017, in the principal amount of Two Billion Five Hundred Sixty Six Million Dollars ($2,566,000,000.00) (the
 “Original Note”). The Original Note evidences a line of credit and is the Warehousing Note referred to in that
certain Second Amended and Restated Warehousing Credit and Security Agreement, dated as of September 11, 2017, by and between the
Borrower and Lender, as amended from time to time (the “Agreement”). Borrower, Lender and Walker & Dunlop,
Inc., a Maryland corporation are contemporaneously herewith amending the Original Credit Facility Agreement, pursuant to that certain
Fifth Amendment to Second Amended and Restated Warehousing Credit and Security Agreement, of even date herewith (the “Credit
Facility Agreement”), and in connection therewith, Borrower and Lender desire to amend and restate the Original Note in its
entirety as follows:

 

FOR VALUE RECEIVED,
Borrower promises to pay to the order of PNC Bank, National Association, a national banking association (together with its successors
and assigns, “Lender”) in accordance with the provisions of the Agreement (as hereafter defined), at the offices
of Lender located at One PNC Plaza, Pennsylvania 15222, or at such other place as Lender may designate from time to time (i) the
principal sum of Three Billion Two Hundred Million Dollars ($3,200,000,000) or so much thereof as may be outstanding under the
Agreement, (ii) interest on that amount from the date of each Warehousing Advance from Lender until repaid in full, and (iii) all
other fees, charges and other Obligations due to Lender under the Agreement, at the rates, at the times, and in the manner set
forth in the Agreement. All payments under this Note and the Agreement must be made in lawful money of the United States and in
immediately available funds.

 

This Seventh Amended
and Restated Warehousing Note (this “Note”) replaces the Original Note in its entirety, and evidences a line
of credit and is the Warehousing Note referred to in the Agreement. Reference is made to the Agreement (which is incorporated by
reference as fully and with the same effect as if set forth at length in this Note) for a description of the Collateral and a statement
of (a) the covenants and agreements made by Borrower, (b) the rights and remedies granted to Lender, and (c) the other matters
governed by the Agreement. Capitalized terms not otherwise defined in this Note have the meanings set forth in the Agreement.

 

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In addition to principal,
interest, fees and other charges payable by Borrower under this Note and the Agreement, Borrower must pay in accordance with the
terms of Section 11.4(a) of the Agreement, all out-of-pocket costs and expenses of Lender, including reasonable fees, expenses
and disbursements of counsel, in connection with the enforcement and collection of this Note.

 

Borrower waives demand,
notice, protest and presentment in connection with collection of amounts outstanding under this Note.

 

This Note is governed
by the laws of the Commonwealth of Pennsylvania, without reference to its principles of conflicts of laws, as an instrument under
seal.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, Borrower has caused
this Seventh Amended and Restated Note to be duly executed as of the date set forth above as a sealed instrument.

	 	 
	 	WALKER & DUNLOP, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	 
	 	Name:	 
	 	Title:Exhibit 4.4

 

Equity Interest Pledge Agreement

 

This Equity Interest Pledge Agreement (this “Agreement”) has been executed by and among the following Parties on April 14, 2020:

 

	
Party   A:
    	
Qing Wutong   Co., Ltd.(“Pledgee”)
    
	
 
    	
 
    
	
Party   B:
    	
Jing Gao, ID number:   [REDACTED];
    
	
 
    	
Yan Cui, ID   number: [REDACTED].
    
	
 
    	
 
    
	
(“Pledgor”)
    
	
 
    	
 
    
	
Party   C:
    	
Zi Wutong (Beijing) Asset Management Co., Ltd.
    

 

In this Agreement, each of Pledgee, Pledgor and Party C shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas,

 

1.              As of the date of this Agreement, Pledgor collectively holds 100 % of the equity interest in Party C. Party C is a limited liability company registered at Dongcheng Branch of Beijing Administration for Industry and Commerce. The business scope is Asset management; Housing rental management; Engaging in real estate brokerage business; Hotel management; Investment consulting; Renting office housing; Design, Production, Agent, Publishing advertisements; Organizing cultural and art exchange activities (excluding performances); Technology promotion, Technology development, Technology transfer, Technology consulting; Economic and Trade consulting; Market investigation; Conference services; Exhibition and display; Computer animation design; Sales of needles and textiles, hardware and telecommunications, clothing, shoes and hats, sports goods, stationery, household appliances, daily necessities, furniture (not engaged in physical shop operation); Professional contracting; Property management. (1) No fund shall be raised in a public way without the approval of the relevant departments; 2) No trading activities of securities products and financial derivatives shall be conducted publicly; 3) No loans shall be granted; 4) No guarantees shall be provided to enterprises other than the invested enterprises; 5) No promises shall be made to investors that the principal of the investment shall not be lost or that the minimum income shall be promised.” Enterprises independently choose and operate projects according to law; projects subject to approval according to law shall be carried out according to approved contents after approval by relevant departments; and they shall not engage in business activities of projects prohibited or restricted by the city’s industrial policy.);

 

2.              Pledgee is a wholly foreign owned enterprise registered in Shanghai, China. Pledgee and Party C have executed an Exclusive Business Cooperation Agreement on April 14, 2020 (“Exclusive Business Cooperation Agreement”); Pledgor, Pledgee and Party C have executed an Exclusive Call Option Agreement on April 14, 2020 (“Exclusive Call Option Agreement”); Pledgee and Party C have executed a Power of Attorney Agreement with Jing Gao and Yan Cui respectively on April 14, 2020 (“Power of Attorney Agreement”).

 

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3.              To ensure that Pledgee and Party C perform Contractual Obligations, Pledgor hereby pledges all of the equity interest he holds in Party C as security for Contractual Obligations.

 

Now therefore, the Parties have reached the following agreement:

 

1.                                      Definitions

 

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

 

1.1                                “Pledge” shall refer to the security interests granted by Pledgor 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 100% of the equity interest lawfully now held and hereafter acquired by Pledgor in Party C, namely 57% of the equity interests in Party C held by Jing Gao and 43% of the equity interest in Party C held by Yan Cui.

 

1.3                                “Term of Pledge” shall refer to the term set forth in Article 3 of this Agreement.

 

1.4                                “Event of Default” shall refer to any of the circumstances set forth in Article 7 of this Agreement.

 

1.5                                “Notice of Default” shall refer to the notice issued by Pledgee in accordance with this Agreement declaring an Event of Default.

 

1.6                                “PRC Laws” shall refer to then effective law, administrative regulations, administrative rules, local regulations, administrative rules, judicial interpretation and other binding normative documents.

 

1.7                                “Transaction Documents” shall refer to this Agreement, Exclusive Business Cooperation Agreement, Exclusive Call Option Agreement and Power of Attorney Agreement.

 

1.8                                “Contractual Obligations” shall refer to all obligations of Pledgor and Party C under the Transaction Documents.

 

2.                                      The Pledge

 

2.1                                As collateral security for the prompt and complete performance when due of any or all obligations under the Transaction Documents by Pledgee and Party C, including without limitation the consulting and services fees payable to the Pledgee under the Exclusive Business Cooperation Agreement, Pledgor hereby pledges to Pledgee 100% equity interest of Party C owned by the Pledgor as security for the Secured Obligations. “Secured Obligations” means all direct, indirect and derivative loss and loss of predicable interests arising from any Event of Default by Pledgor and/or Party C. The supportive materials for the amount of such loss includes but not limited to Pledgor’s reasonable business plan and profit forecast, fees payable under the Exclusive Business Cooperation Agreement and all expenses and fees caused by Pledgee for forcing Pledgor and/or Party C to perform the Contractual Obligations.

 

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2.2                                Only upon the prior written consent by Pledgee, Pledgor may increase the registered capital of Party C. The increased Equity Interests of Party C held by Pledgor due to increase of registered capital shall also be subject to this Agreement. All the Parties shall use their best effort to modify and execute relevant documents and complete equity pledge registration procedure.

 

3.                                      Term of Pledge

 

3.1                                The Pledge shall become effective as of the date when the pledge of the Equity Interest is registered with the local administration of industry and commerce (the “Registration Authority”). The Parties further agree that within thirty (30) days as of the Registration Authority officially commences the acceptance of equity pledge application, Pledgor and Party C shall complete the pledge registration procedure, obtain the pledge registration notice and completely and accurately register the Pledge of Equity Interest on the Pledge Registration Book of the Registration Authority.

 

3.2                                The Term of the Pledge shall end when the last obligation secured by the Pledge is paid or fully fulfilled.

 

4.                                      Custody of Records for Equity Interest

 

4.1                                During the Term of Pledge set forth in this Agreement, Pledgor shall deliver to Pledgee’s custody the capital contribution certificate for the Equity Interest and the shareholders’ register containing the Pledge within three days from the date the Pledge is registered. Pledgee shall have custody of such items 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.

 

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5.                                      Representations and Warranties of Pledgor

 

5.1                                Pledgor is the sole legal and beneficial owner of the Equity Interest. There are no controversies over the ownership of the Equity Interest. Pledgor has the right to dispose all and any part of the Equity Interest.

 

5.2                                Except for the Pledge under this Agreement and the option rights under the Exclusive Call Option Agreement, Pledgor has not placed any security interest or other encumbrance on the Equity Interest.

 

5.3                                The Equity Interest is good for transfer and pledging according to applicable laws and Pledgor has full power and right to pledge the Equity Interest to Pledgee in accordance with this Agreement.

 

5.4                                Upon due execution of Pledgor, this Agreement constitute legal, effective and binding obligation on Pledgor.

 

5.5                                The Pledgor’s execution of this Agreement and exercise of its rights under this Agreement will not breach any laws, regulations, and agreements or contracts to which the Pledgor is a party, any judgment of a court, any arbitration award or any decision of an administrative authority.

 

5.6                                Pledgor hereby warrants to the Pledgee that, at any time and under any circumstances prior to complete fulfillment of the obligations under this Agreement or the Secured Obligations being fully repaid, the aforementioned representations and warranties are true and accurate and will be fully complied with.

 

6.                                      Covenants and Further Agreements of Pledgor

 

6.1                                Pledgor hereby covenants to the Pledgee, that during the term of this Agreement, Pledgor shall:

 

6.1.1                     not transfer all or any part of the Equity Interest, place or permit the existence of any security interest or other encumbrance that may affect the Pledgee’s rights and interests in the Equity Interest, without the prior written consent of Pledgee, except for the performance of the Exclusive Call Option Agreement executed by Pledgor, Pledgee and Party C on April 14, 2020;

 

6.1.2                     promptly notify Pledgee of any event or notice received by Pledgor that may have an impact on Pledgee’s rights to the Equity Interest or any portion thereof, as well as any event or notice received by Pledgor that may have an impact on any guarantees and other obligations of Pledgor arising out of this Agreement.

 

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

 

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6.3                                Pledgor hereby undertakes 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, Pledgor shall indemnify Pledgee for all losses resulting therefrom.

 

7.                                      Event of Default

 

7.1                               The following circumstances shall be deemed Event of Default:

 

7.1.1                      Party C fails to pay in full any of the consulting and service fees payable under the Exclusive Business Cooperation Agreement, or fail to repay its loan or breaches any other obligations of Party C thereunder;

 

7.1.2                      Any representation or warranty by Pledgor in Article 5 of this Agreement contains material misrepresentations or errors, and/or Pledgor violates any of the warranties in Article 5 of this Agreement;

 

7.1.3                      Pledgor and Party C fail to complete the registration of the Pledge with Registration Authority in accordance with Section 3.1 of this Agreement;

 

7.1.4                      Pledgor breach covenants and further agreement under Article 6 of this Agreement;

 

7.1.5                      Pledgor and Party C breach any provisions of this Agreement;

 

7.1.6                      Any of Pledgor’s own loans, guarantees, indemnifications, promises or other debt liabilities to any third party or parties (1) become subject to a demand of early repayment or performance due to default on the part of Pledgor; or (2) become due but are not capable of being repaid or performed in a timely manner;

 

7.1.7                     Any approval, license, permit or authorization of government agencies that makes this Agreement enforceable, legal and effective is withdrawn, terminated, invalidated or substantively changed;

 

7.1.8                     The promulgation of applicable laws renders this Agreement illegal or renders it impossible for Pledgor to continue to perform its obligations under this Agreement;

 

7.1.9                     Adverse changes in properties owned by Pledgor, which lead Pledgee to believe that that Pledgor’s ability to perform its obligations under this Agreement has been affected;

 

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7.1.10               The successor or custodian of Party C is capable of only partially performing or refuses to perform the payment obligations under the Transaction Documents; and

 

7.1.11               Any other circumstances occur where Pledgee is or may become unable to exercise its right with respect to the Pledge.

 

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, Pledgor 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, Pledgee may issue a Notice of Default to Pledgor in writing upon the occurrence of the Event of Default or at any time thereafter and demand that Pledgor immediately pays all outstanding payments due under the Exclusive Business Cooperation Agreement, and/or repays loans and all other payments due to Pledgee, and/or disposes of the Pledge in accordance with the provisions of Article 8 of this Agreement.

 

8.                                      Exercise of Pledge

 

8.1                                Without the Pledgee’s written consent, Pledgor shall not assign the Pledge or the Equity Interest in Party C.

 

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

 

8.3                                Subject to the provisions of Section 7.3, Pledgee may exercise the right to enforce the Pledge concurrently with the issuance of the Notice of Default in accordance with Section 8.2 or at any time after the issuance of the Notice of Default.

 

8.4                                Pledgee is entitled to receive in priority compensation from the transfer, auction or sale of all or part of the Equity Interests pledged under this Agreement in accordance with legal procedures until all Secured Obligations is fully paid.

 

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

 

9.                                      Assignment

 

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

 

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9.2                                This Agreement shall be binding on Pledgor 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 Transaction Agreements 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 Transaction Agreements, upon Pledgee’s request, Pledgor 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, Pledgor shall, at the request of Pledgee, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement.

 

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

 

10.                               Termination

 

Upon the full performance of Contractual Obligations or the full payment of the Secured Obligations, 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 C. If applicable laws requires that Pledgee should bear some related taxes and fees, Pledgor shall cause Party C to fully repay Pledgee the paid taxes and fees.

 

12.                               Confidentiality

 

The Parties acknowledge that any oral or written information exchanged among them with respect to this Agreement is confidential information. Each Party shall maintain the confidentiality of all such information, and without obtaining the written consent of other Parties, it shall not disclose any relevant information to any third parties, except in the following circumstances: (a) such information is or will be in the public domain (provided that this is not the result of a public disclosure by the receiving party); (b) information disclosed as required by applicable laws or rules or regulations of any stock exchange; or (c) information required to be disclosed by any Party to its legal counsel or financial advisor regarding the transaction contemplated hereunder, and such legal counsel or financial advisor are also bound by confidentiality duties similar to the duties in this section. Disclosure of any confidential information by the staff members or agency 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.

 

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13.                               Governing Law and Resolution of Disputes

 

13.1                         The execution, effectiveness, construction, performance, 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 the provisions of this Agreement, the Parties shall negotiate in good faith to resolve the dispute. In the event the Parties fail to reach an agreement on the resolution of such a dispute within 30 days after any Party’s request for resolution of the dispute through negotiations, any Party may submit the relevant dispute to China International Economic and Trade Arbitration Commission (CIETAC) for arbitration, in accordance with its then effective arbitration rules. The arbitration shall be conducted in Beijing, and the language used during arbitration shall be Chinese. The arbitration ruling 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 email. The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

14.1.1              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.

 

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14.1.2              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).

 

14.2                        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.

 

15.                               Severability

 

In the event that one or several of the provisions of this Agreement 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 Agreement 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; Entire Agreement

 

The attachments set forth herein shall be an integral part of this Agreement. Except for written amendment, supplement or change after the execution of this Agreement, this Agreement shall constitute the full and entire understanding and agreement among the Parties with regard to the subjects hereof, and supersedes all other agreements between or among any of the Parties with respect to the subject matter hereof.

 

17.                               Effectiveness

 

17.1                        This Agreement shall become effective upon the executing of the Parties. Any amendments, changes and supplements to this Agreement shall be in writing and shall become effective after the affixation of the signatures or seals of the Parties.

 

17.2                        This Agreement is written in Chinese in four (4) copies. Each copy of this Agreement shall have equal validity.

 

[The space below is intentionally left blank.]

 

9

 

[Signature Pages to Equity Interest Pledge Agreement]

 

	
Party A:
    	
Qing Wutong Co., Ltd.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Yan Cui
    	
 
    	
 
    
	
Name:
    	
Yan Cui
    	
 
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    	
 
    

 

 

[Signature Pages to Equity Interest Pledge Agreement]

 

	
Party B:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Jing Gao
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jing Gao
    	
 
    	
 
    

 

 

[Signature Pages to Equity Interest Pledge Agreement]

 

	
Party B:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Yan Cui
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Yan Cui
    	
 
    	
 
    

 

 

[Signature Pages to Equity Interest Pledge Agreement]

 

	
Party C:
    	
    Zi Wutong (Beijing) Asset Management   Co., Ltd.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jing Gao
    	
 
    	
 
    
	
Name:
    	
Jing Gao
    	
 
    	
 
    
	
Title:
    	
Legal   Representative

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00308-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00308-of-00352.parquet"}]]