Document:

Exhibit 10.5

 

 

 

Transitional Services Agreement

 

 

between

 

 

Jianpu Technology Inc.

 

 

and

 

 

Rong360 Inc.

 

 

September 22, 2017

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
Section 1 Definitions
    	
2
    
	
 
    	
 
    	
 
    
	
1.01.
    	
DEFINITIONS
    	
2
    
	
1.02.
    	
OTHER TERMS
    	
3
    
	
1.03.
    	
GENERAL INTERPRETATIONS
    	
3
    
	
 
    	
 
    	
 
    
	
Section 2 Service
    	
3
    
	
 
    	
 
    	
 
    
	
2.01.
    	
SERVICE PROVIDED BY   JIANPU FOR RONG360
    	
3
    
	
2.02.
    	
SERVICE PROVIDED BY   RONG360 FOR JIANPU
    	
5
    
	
2.03.
    	
LICENSE OF INTELLECTUAL   PROPERTY
    	
5
    
	
 
    	
 
    	
 
    
	
Section 3 Confidential Obligations
    	
6
    
	
 
    	
 
    	
 
    
	
3.01.
    	
CONFIDENTIALITY
    	
6
    
	
 
    	
 
    	
 
    
	
Section 4 Term and Termination
    	
7
    
	
 
    	
 
    	
 
    
	
4.01.
    	
COMMENCEMENT
    	
7
    
	
4.02.
    	
TERMINATION
    	
7
    
	
4.03.
    	
EFFECT OF TERMINATION
    	
7
    
	
 
    	
 
    	
 
    
	
Section 5 Miscellaneous
    	
8
    
	
 
    	
 
    	
 
    
	
5.01.
    	
AMENDMENTS AND WAIVERS
    	
8
    
	
5.02.
    	
ASSIGNMENT
    	
8
    
	
5.03.
    	
COUNTERPART
    	
8
    
	
5.04.
    	
HEADINGS
    	
8
    
	
5.05.
    	
NOTICE
    	
9
    
	
5.06.
    	
GOVERNING LAW
    	
9
    
	
5.07.
    	
DISPUTE RESOLUTION
    	
9
    
	
5.08.
    	
ENTIRE AGREEMENT
    	
9
    

 

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This Cooperation Agreement for the Transitional Period (this “Agreement”) is executed on September 22, 2017 (“Execution Date”) by and between both parties:

 

(1)             Jianpu Technology Inc. (“Jianpu”), an exempted limited liability company incorporated and existing under the laws of the Cayman Islands; and

 

(2)             Rong360 Inc. (“Rong360”), an exempted limited liability company incorporated and existing under the laws of the Cayman Islands.

 

For the purpose of this Agreement, Jianpu and Rong360 shall be referred to as a “party”, respectively, and “parties”, collectively.

 

Whereas

 

Whereas, Rong360 holds 100% shares of Jianpu on the Execution Date of this Agreement;

 

Whereas, both parties desire that Rong360 Group and Jianpu Group launch business cooperation in which members of Rong360 Group provides a series of service and supports for members of Jianpu Group and vice versa.

 

THEREFORE, both parties hereby agree as follows:

 

SECTION 1 DEFINITIONS

 

1.01.       Definitions

 

Unless otherwise defined, terms used in this Agreement shall have the meanings assigned to them as follows:

 

“Affiliate”, in relation to any company (or other entities), means an entity that is controlled by, controls or is under the common control with, such company; provided however that, for the purpose of this Agreement, an Affiliate of any member of Rong360 Group excludes any and all members of Jianpu Group and vice versa. “Control” means holding more than 50% shares or voting rights of a company (or other entities) or 

 

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having actual decision right or control right over the operation of such company by directors’ appointment, agreement or other means.

 

“This Agreement” has the meaning assigned to it in the Whereas clause.

 

“Jianpu” has the meaning assigned to it in the Whereas clause.

 

“Jianpu Group” means Jianpu and all of its subsidiaries and VIE entities.

 

“Rong360” has the meaning assigned to it in the Whereas clause.

 

“Rong360 Group” means Rong360 and all of its subsidiaries (excluding any entity of Jianpu Group) and VIE entities.

 

“Service Term” means 12 months from the commencement date of this Agreement and can be extended upon agreement by both parties; provided that the extended term will not exceed 12 months.

 

“Parties” has the meaning assigned to it in the Whereas clause.

 

“Law” means any national, international, state, provincial, local or similar statute, law, ordinance, regulation, by-law, rule, code, order, directive, requirement, legal principle, administrative regulation of China or other countries and rules of relevant stock exchanges for securities issuance and transaction.

 

1.02.       Other Terms

 

Other terms may be defined in any part of this Agreement. Unless otherwise specified herein, such terms shall have the meaning assigned to them for the purpose of this Agreement.

 

1.03.       General Interpretations

 

Unless otherwise specified herein, the term “include” in any grammatical form used in this Agreement shall have the meaning of “not limited to”.

 

SECTION 2 SERVICE

 

2.01.       Service provided by Jianpu for Rong360

 

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Both parties agree that, without prejudice to independent operation of Rong360 Group and Jianpu Group, Jianpu will, during the Service Term agreed by both parties, provide Rong360 or its Affiliates (in relation to service to be actually provided by Jianpu’s Affiliate, Jianpu shall cause such Affiliate to provide Rong360 or its Affiliate) with the following service and that, in line with the fair pricing principle and taking into account the cost and expense for the provision of such service, Jianpu or its Affiliate charges service fee as agreed below:

 

(1)             Operation Support: including relevant technical support for the product research and development. Jianpu or its Affiliate shall prepare the confirmation form of working hours according to the actual service hours of each type of service and, upon acknowledgement by both parties, settle and charge Rong360 or its Affiliate quarterly.

 

(2)             Administration Support: including secretary support, event management, meeting management and other routine office support.

 

(3)             Human Resources Support: including support for recruitment, employees’ service center, labor force management, employees’ data management, payroll management, and other support in relation to human resources.

 

(4)             Legal Support: including support relating to contract management, risk control, compliance and other legal issues of the company.

 

(5)             Support for Finance, Internal Control, and Internal Audit. In relation to the four categories of service, including the Administration Support, Human Resources Support, Legal Support, and Support for Finance, Internal Control and Internal Audit referred to Sections 2.01(2), 2.01(3), 2.01(4) and 2.01(5), respectively, Jianpu or its Affiliate shall charge Rong360 or its Affiliate at the price of RMB_____ per year in total.

 

(6)      Gold Cloud Service. During the Service Term, Jianpu or its Affiliate 

 

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shall provide Rong360 or its Affiliate with Gold Cloud Service at the price in line with the fair principle.

 

2.02.       Service Provided by Rong360 for Jianpu

 

Both parties agree that, without prejudice to independent operation of Rong360 Group and Jianpu Group, Rong360 will, during the Service Term agreed by both parties, provide Jianpu or its Affiliates (in relation to service to be actually provided by Rong360’s Affiliate, Rong360 shall cause such Affiliate to provide Jianpu or its Affiliate) with the following service and that, in line with the cost and expense for the provision of such service, Rong360 or its Affiliate charges service fee as agreed below:

 

(1)             Human Resources Support: Rong360 or its Affiliate provides human resources support for Jianpu or its Affiliate according to the actual demand of Jianpu or its Affiliate.

 

(2)             Business Contract Support: In terms of any business contract within the business scope to be listed by Jianpu that is actually performed by Jianpu or its Affiliate, though the contracting party has not changed to Jianpu or its Affiliate from Rong360 or its Affiliate, both parties acknowledge that Rong360 or its Affiliate will pay and/or collect fees under such business contract on behalf of Jianpu or its Affiliate and all revenues derived from the same shall be confirmed by Jianpu or its Affiliate.

 

(3)             Business Resources Support: Rong360 or its Affiliate provides business resources support for Jianpu or its Affiliate according to the actual demand of Jianpu or its Affiliate.

 

2.03.       License of Intellectual Property

 

Both parties acknowledge that Rong360 (on behalf of itself and its Affiliate) license Jianpu or its Affiliate to use for free any and all intellectual property contributed to Jianpu or its Affiliate under relevant 

 

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contribution agreement executed by Rong360 or its Affiliate and Jianpu or its Affiliate during the term prior to the completion of the registration of title transfer of the same.

 

SECTION 3 CONFIDENTIAL OBLIGATIONS

 

3.01.       Confidentiality

 

(1)             Both parties agree and acknowledge that any oral or written materials exchanged in relation to this Agreement and the existence and contents of this Agreement shall be confidential information (“Confidential Information”). Both parties shall keep any and all Confidential Information of the other party in confidence and may not disclose the same to any third party without prior written consent from the other party. Unless otherwise required by applicable laws, the receiving party will not disclose the Confidential Information of the disclosing party to any third party other than the receiving party’s Affiliate, employees or agents who need to know the same and have the obligation to keep the same in confidence with limited use. The receiving party shall protect the Confidential Information of the disclosing party in the same way it protects its own proprietary and confidential information and materials and in no event shall it be lower than the standard for reasonable caution. The receiving party and its Affiliate shall be liable for any breach of the confidential obligation by its employees or agents; provided however that the following information are not confidential information: (a) information that enters public domain (which is not disclosed without permission to the public by the receiving party or its Affiliate or persons); (b) information received by the receiving party who has no prior confidentiality obligation; (c) information obtained by the receiving party from any third party who has no confidentiality obligation to the same to the reasonable knowledge of the receiving party; (d) information to be disclosed by applicable laws, competent governmental authorities, competent securities exchanges, and rules 

 

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or regulations of relevant securities exchanges (in such case and to the extent permitted by applicable laws, the receiving party shall inform the disclosing party of such requirement prior to any disclosure so that the disclosing party  may claim for any possible defense for such disclosure); or (e) information disclosed by the receiving party under written authorization of the disclosing party to the permitted extent of disclosure.

 

(2)             Both parties further warrant that they will use the Confidential Information provided by the other party for the purpose of this Agreement only and, upon termination of this Agreement or at the request of the other party, destroy or return such Confidential Information to the other party.

 

(3)             No trade secret, copyright or other intellectual property right under this Agreement and no Confidential Information to be disclosed by agreement are authorized or permitted to disclose.

 

SECTION 4 TERM AND TERMINATION

 

4.01.       Commencement

 

This Agreement shall come into force upon its execution by authorized representatives of both parties.

 

4.02.       Termination

 

This Agreement may terminate under any of the following circumstances: (1) both parties may agree to terminate this Agreement upon written agreement; (2) either party may terminate this Agreement by a written notice to that effect if the other party materially breaches its obligations under this Agreement.

 

4.03.       Effect of Termination

 

If this Agreement terminates, this Agreement shall have no validity upon 

 

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its termination and either party to this Agreement is no longer required to be liable to the other party or its Affiliate, directors, executives or employees, save as the obligations of both parties set out in Sections 3.01  (Confidentiality), 5.05 (Notice), 5.06 (Governing Law), and 5.07 (Dispute Resolution) of this Agreement. Termination of this Agreement will not exempt any liability of either party arising from any of its breach of this Agreement prior to such termination.

 

SECTION 5 MISCELLANEOUS

 

5.01.       Amendments and Waivers

 

Any clause of this Agreement may be amended or waived; provided that such amendment or waiver shall be made in writing and endorsed by Jianpu and Rong360 in the case of amendment or by the waiving party in the case of waiver. Failure or delay in exercising any right, power or privilege under this Agreement by either party shall not constitute the waiver of the same and any unilateral or partial exercise of the same will not exclude any other or further exercise of the same or other rights, powers or privilege.

 

5.02.       Assignment

 

Unless otherwise agreed by the other party to this Agreement in writing, neither party may assign any of its rights or obligations under this Agreement by contract or other means.

 

5.03.       Counterpart

 

This Agreement shall be executed in quadruplicate in Chinese, with each part holding two counterparts and having the same legal effect.

 

5.04.       Headings

 

Headings and contents of clauses and sections contained in this Agreement is for reference only and shall in no event affect the meaning 

 

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or interpretation of this Agreement.

 

5.05.       Notice

 

Any and all notices or other correspondences required or permitted to serve  under this Agreement shall be deemed as effectively served under any of the following circumstances: (i) served on the delivery date, if delivered in person or by courier; (ii) served on the receiving date, if delivered by fax (the confirmation is received and the original copy is served to the facsimile recipient within 5 calendar days in person or by courier) or by registered mail (receipt is required). The foregoing notices or correspondences shall be served to the addresses otherwise specified by both parties in writing.

 

5.06.       Governing Law

 

This Agreement shall be governed and interpreted by laws of the Cayman Islands (without application of its conflict law)

 

5.07.       Dispute Resolution

 

Any dispute arising from or in connection with this Agreement shall be resolved by both parties through friendly negotiation. If such dispute fails to be resolved within 120 days after either party requires to negotiate, either party may submit the same to China International Economic and Trade Arbitration Commission (“CIETAC”) in Beijing for arbitration in accordance with its then-effect arbitration rules. The venue shall be in Beijing. There shall be three arbitrators and each party may appoint one arbitrator. Two arbitrators so appointed shall appoint the third arbitrator who shall be the presiding arbitrator. During arbitration, both parties shall continue their respective rights and perform their respective obligations under this Agreement, except for disputed issues. The language of the proceedings shall be Chinese.

 

5.08.       Entire Agreement

 

This Agreement constitutes the entire agreement between both parties 

 

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for the subject matter of this Agreement and supersedes any prior written or oral agreement and understanding on such subject matter.

 

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IN WITNESS HEREOF, both parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date and year written above.

 

 

	
Jianpu   Technology Inc.
    
	
 
    
	
 
    
	
Signature:
    	
/s/ Daqing Ye
    

 

11

 

IN WITNESS HEREOF, both parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date and year written above.

 

 

	
Rong360   Inc.
    
	
 
    
	
 
    
	
Signature:
    	
/s/ Daqing Ye
    	
 
    

 

12Exhibit 10.7

 

Exclusive Purchase Option Agreement

 

This Exclusive Purchase Option Agreement (this “Agreement”) is entered into in Beijing, the People’s Republic of China (the “PRC” or “China”) on September 29, 2017 2017 by and among:

 

	
Party A:
    	
Beijing Rongqiniu Information Technology Co. Ltd., a   wholly foreign-owned limited liability company established and existing under   the laws of the PRC, with its registered address at Room A0502, F/2,   No. 3 Building, No. 30 Shixing Street, Shijingshan District,   Beijing.
    
	
 
    	
 
    
	
Party B:
    	
Huang Dawei, a Chinese   citizen, ID No. ******************
    
	
 
    	
Lu Jiayana, a Chinese   citizen, ID No. ******************
    
	
 
    	
Liu Caofeng, a Chinese   citizen, ID No. ******************
    
	
 
    	
 
    
	
Party C:
    	
Beijing Rongdiandian Information Technology Co.   Ltd., a limited liability company established and existing   under the laws of the PRC, with its registered address at B183 2/F,   No. 88 Xiangshan Road, Haidian District, Beijing.
    

 

In this Agreement, Party A, Party B and Party C may be hereinafter referred to individually as a “Party” and collectively as the “Parties.”

 

(1)                                 The Persons of Party B are all the currently registered shareholders of Party C and hold 100% equity interest in Party C in the aggregate;

 

(2)                                 Subject to the laws of the PRC, Party B intends to transfer to Party A and/or any other entity or individual designated by it, and Party A intends to accept such transfer of, all the equity interest in Party C held by Party B;

 

(3)                                 Subject to the laws of the PRC, Party C intends to transfer to Party A and/or any other entity or individual designated by it, and Party A intends to accept such transfer of, the assets owned by Party C;

 

(4)                                 In order to consummate the aforesaid equity or asset transfer, Party B and Party C agree to grant, on an exclusive basis, respectively to Party A irrevocable Equity Purchase Option (as defined below) and Asset Purchase Option (as defined below), Party C agrees that Party B grants the Equity Purchase Option to Party A in accordance with this Agreement, and Party B agrees that Party C grants the Asset Purchase Option to Party A in accordance with this Agreement.

 

NOW, THEREFORE, through mutual consultation, the Parties agree as follows:

 

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1.                                      Equity Purchase Option and Asset Purchase Option

 

1.1                               Grant of Options

 

Party B hereby irrevocably grants to Party A an irrevocable and exclusive option to purchase, or cause one or more designated Persons (each, a “Designee”) to purchase, all or any part of equity interest in Party C held by any Person of Party B now or hereafter from such Person at any time, one or more times, at the price set forth in Article 1.3 hereof according to the steps for exercise as determined by Party A in its sole discretion (the “Equity Purchase Option”). No third Person other than Party A and the Designees shall have the right to purchase equity interest in Party C held by Party B or other rights related to equity interest in Party C held by Party B. Party C hereby agrees that Party B grants the Equity Purchase Option to Party A in accordance with this Agreement. “Person” referred to in this article and this Agreement means individual, company, joint venture, partnership, enterprise, trust or unincorporated organization.

 

Party C hereby irrevocably grants to Party A an irrevocable and exclusive option to purchase, or cause the Designee(s) to purchase, all or any part of assets owned by Party C now or hereafter from Party C at any time, one or more times, at the price set forth in Article 1.3 hereof according to the steps for exercise as determined by Party A in its sole discretion (the “Asset Purchase Option”). No third Person other than Party A and the Designees shall have the right to purchase assets of Party C or other rights related to assets of Party C. Party B hereby agrees that Party C grants the Asset Purchase Option to Party A in accordance with this Agreement.

 

Party A agrees to accept the aforesaid Equity Purchase Option and the Asset Purchase Option. For the avoidance of doubt, Party A may exercise any rights hereunder, including the Equity Purchase Option and/or the Asset Purchase Option, at any time after the execution and effectiveness of this Agreement. To the fullest extent permitted by the laws of the PRC, Party A shall have the right to exercise the rights hereunder, including the Equity Purchase Option and/or the Asset Purchase Option, against Party B or its successor or successor entity and Party C and its successor entity in accordance with the terms of this Agreement.

 

1.2                               Steps for Exercise

 

1.2.1                     Subject to the terms and conditions of this Agreement, to the extent permitted by the laws of the PRC, Party A shall determine the timing, method and times of its exercise of the Equity Purchase Option and the Asset Purchase Option in its absolute and sole discretion and shall have the right to request at any time Party B to transfer all or any part of its equity interest in Party C, or Party C to transfer all or any part of its assets, to it or the Designee(s).

 

1.2.2                     With respect to the Equity Purchase Option, Party A shall have the right to determine in its sole discretion the amount of equity interest to be transferred by each Person of Party B to Party A and/or the Designee(s) in each exercise, and Party B shall transfer such amount of the Purchased Equity (as defined below) as requested by Party A to Party A and/or the Designee(s). Party A and/or the Designee(s) shall pay the transfer price to the transferring Person of Party B for the Purchased Equity acquired in each exercise.

 

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1.2.3                     With respect to the Asset Purchase Option, Party A shall have the right to determine the specific assets of Party C to be transferred by Party C to Party A and/or the Designee(s) in each exercise, and Party C shall transfer the Purchased Assets (as defined below) as requested by Party A to Party A and/or the Designee(s). Party A and/or the Designee(s) shall pay the transfer price to Party C for the Purchased Assets acquired in each exercise.

 

1.2.4                     When Party A exercises the Equity Purchase Option or the Asset Purchase Option, it shall give a written notice (the “Equity Purchase Notice” or the “Asset Purchase Notice”) to Party B, specifying (a) decision made by Party A or the Designee(s) on exercise of the Equity Purchase Option/the Asset Purchase Option; (b) the percentage of equity interest proposed to be purchased by Party A or the Designee(s) from Party B (the “Purchased Equity”), or the specific assets proposed to be purchased from Party C (the “Purchased Assets”); and (c) the purchase date/transfer date of the purchased equity or assets. After the receipt of such notice, Party B or Party C shall, pursuant to such notice, promptly transfer the Purchased Equity or the Purchased Assets to Party A and/or the Designee(s) in such way as described in this Agreement.

 

1.3                               Transfer Price

 

1.3.1                     With respect to the Equity Purchase Option hereunder, the transfer price corresponding to the Purchased Equity in each exercise by Party A shall be the lowest price permitted by the laws of the PRC applicable at the time of exercise; with respect to the Asset Purchase Option hereunder, the transfer price corresponding to the Purchased Assets in each exercise by Party A shall be the net book value of the Purchased Assets; if the lowest price permitted by the then applicable laws of the PRC is higher than the net book value of the Purchased Assets, the transfer price shall be the lowest price permitted by the laws of the PRC.

 

1.3.2                     The Parties hereby agree that, after Party A exercises the Equity Purchase Option and/or the Asset Purchase Option, Party B and/or Party C shall pay all the transfer price collected thereby to Party A or another party designated by it without compensation.

 

1.4                               Transfer of the Purchased Equity/the Purchased Assets

 

When Party A exercises the Equity Purchase Option and/or the Asset Purchase Option each time:

 

1.4.1                     Party C shall, and Party B shall cause Party C to, promptly hold a shareholders’ meeting, at which a resolution shall be adopted on the approval of the transfer of the Purchased Equity by Party B, or the transfer of the Purchased Assets by Party C, to Party A and/or the Designee(s);

 

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1.4.2                     with respect to the transfer of the Purchased Equity to Party A and/or the Designee(s), Party B shall obtain a written statement from the other shareholders of Party C, in which they approve such transfer and waive the right of first refusal; meantime, when Party A exercises the Equity Purchase Option to purchase equity interest in Party C held by several Persons of Party B, the other Persons of Party B shall issue a written statement, in which they approve such transfer and waive the right of first refusal;

 

1.4.3                     Party B shall enter into an equity transfer agreement for each equity transfer with Party A and/or the Designee(s) (as applicable) in accordance with this Agreement and the Equity Purchase Notice, in the form and substance satisfactory to Party A; Party C shall enter into an asset transfer agreement for each asset transfer with Party A and/or the Designee(s) (as applicable) in accordance with this Agreement and the Asset Purchase Notice, in the form and substance satisfactory to Party A;

 

1.4.4                     the relevant Parties shall execute all other necessary contracts, agreements or documents (including, without limitation, amendment to the articles of association), obtain all necessary governmental licenses and permits (including, without limitation, business license) and take all necessary actions to transfer the valid title of the Purchased Equity and/or the Purchased Assets to Party A and/or the Designee(s), free and clear of any Security Interest, and cause Party A and/or the Designee(s) to become the registered owner(s) of the Purchased Equity and/or the Purchased Assets, if applicable. For the purpose of this article and this Agreement, “Security Interest” includes security, mortgage, third party rights or interests, any call option, right to acquire, right of first refusal, right of set-off, ownership detainment or other security arrangements, for the sake of clarity, excluding any Security Interest created under this Agreement, the Equity Pledge Agreement of Party B and the Power of Attorney of Party B. The “Equity Pledge Agreement of Party B” referred to in this article and this Agreement means the Equity Pledge Agreement entered into by Party A, Party B and Party C on the date hereof, as amended, modified or restated; the “Power of Attorney of Party B” referred to in this article and this Agreement means the Power of Attorney executed by Party B to authorize Party A on the date hereof, as amended, modified or restated.

 

2.                                      Covenants

 

2.1                               Covenants Concerning Party C

 

Party B (as the shareholders of Party C) and Party C hereby covenant that:

 

2.1.1                     without the prior written consent of Party A, they shall not supplement, modify or amend the articles of association or bylaws of Party C in any form, increase or decrease its registered capital or otherwise change its registered capital structure;

 

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2.1.2                     they shall maintain the corporate existence of Party C according to good financial and business standards and practices, conduct its business and transact its affairs prudently and effectively and cause Party C to perform its obligations under the Exclusive Business Cooperation Agreement executed by it on the date hereof;

 

2.1.3                     without the prior written consent of Party A, they shall not sell, transfer, mortgage or otherwise dispose of lawful or beneficial interest in any assets, business or income of Party C or permit the encumbrance thereon of any Security Interest at any time from the date hereof (including without limitation transfer of any of Party C’s intellectual properties, or any encumbrance on the ownership or right to use of such assets);

 

2.1.4                     after the statutory liquidation described in Article 3.2.6, Party B will fully pay Party A any remaining residual value collected on the basis of non-bidirectional payment or procure such payment; if such payment is prohibited by the laws of the PRC, Party B will pay such income to Party A or the party designated by Party A to the extent permitted by the laws of the PRC;

 

2.1.5                     without the prior written consent of Party A, they shall not incur, inherit, guarantee or permit the existence of any debts, except for (i) debts incurred in the ordinary course of business other than through loans; and (ii) debts disclosed to and approved by Party A in writing;

 

2.1.6                     they shall always conduct all the business of Party C in the ordinary course of business to maintain the asset value of Party C and refrain from any act/omission that may affect the operation status and asset value of Party C;

 

2.1.7                     without the prior written consent of Party A, they shall not cause Party C to enter into any material contract, except for the contracts entered into in the ordinary course of business (for the purpose of this paragraph, a contract shall be deemed as a material contract if its value exceeds RMB100,000);

 

2.1.8                     without the prior written consent of Party A, they shall not cause Party C to provide any Person with loan or credit or any form of security;

 

2.1.9                     upon request by Party A, they shall provide Party A with all information regarding the operation and financial status of Party C, including but without limitation, the balance sheet, profit statement and cash flow statement;

 

2.1.10              if requested by Party A, they shall procure and maintain insurance on assets and business of Party C, the amounts and types of which shall be consistent with those of the companies operating similar business, with an insurer acceptable to Party A;

 

2.1.11              without the prior written consent of Party A, they shall not cause or allow Party C to merge or consolidate with any Person or acquire or invest in any Person, or cause or allow Party C to sell its assets with value of more than RMB100,000;

 

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2.1.12              they shall promptly notify Party A of any litigation, arbitration or administrative proceeding initiated or threatened in relation to the assets, business or income of Party C;

 

2.1.13              to retain Party C’s title to all of its assets, they shall execute all necessary or appropriate documents, take all necessary or appropriate actions and file all necessary or appropriate complaints or make necessary and appropriate defenses against all claims;

 

2.1.14              without the prior written consent of Party A, they shall ensure that Party C shall not distribute dividends to its shareholders in any form; provided, however, that Party C shall promptly distribute all distributable profits to its shareholders upon written request by Party A;

 

2.1.15              upon request by Party A, they shall appoint any Person designated by Party A as the director of Party C and/or remove the incumbent director of Party C; and

 

2.1.16              without the written consent of Party A, Party C shall not be dissolved or liquidated, unless mandatorily required by the laws of the PRC.

 

2.2                               Acknowledgements and Covenants of Party B

 

Party B hereby acknowledges that:

 

2.2.1                     to the fullest extent permitted by the laws of the PRC, any equity interest in Party C held by Party B now or hereafter shall not belong to community property of Party B (in the event that Party B is a natural Person) or hereditament and shall not be divided or inherited, nor shall Party B use its equity interest in Party C to assume debt repayment liability or security liability. If, due to any reason, such equity interest is divided, transferred or inherited, successor(s) or transferee(s) shall execute all documents requested by Party A (including, without limitation, this Agreement, the Equity Pledge Agreement of Party B and the Power of Attorney of Party B).

 

Party B hereby covenants that:

 

2.2.2                     without the prior written consent of Party A, it shall not sell, transfer, mortgage or otherwise dispose of any lawful or beneficial interest in its equity interest in Party C or permit the encumbrance thereon of any Security Interest, other than the pledge created on such equity interest in accordance with the Equity Pledge Agreement of Party B;

 

2.2.3                     it shall not request Party C to distribute dividends or make other forms of profit distribution in connection with its equity interest in Party C, propose a resolution thereon to the shareholders’ meeting or vote in favor of such resolution at the shareholders’ meeting. In any event, if Party B receives any proceeds, profit distribution or dividends from Party C, to the extent permitted by the laws of the PRC, Party B shall promptly pay or transfer such proceeds, profit distribution or dividends to Party A or the party designated by Party A for the benefit of Party C as the service fee payable by Party C to Party A under the Exclusive Business Cooperation Agreement;

 

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2.2.4                     it shall cause the shareholders’ meeting and/or the board of directors of Party C not to approve the sale, transfer, mortgage or other disposal of any lawful or beneficial interest in its equity interest in Party C or permit the encumbrance thereon of any Security Interest without the prior written consent of Party A, other than the pledge created on such equity interest in accordance with the Equity Pledge Agreement of Party B;

 

2.2.5                     it shall cause the shareholders’ meeting or the board of directors of Party C not to approve merger or consolidation with any Person or acquisition of or investment in any Person without the prior written consent of Party A;

 

2.2.6                     it shall promptly notify Party A of any litigation, arbitration or administrative proceeding initiated or threatened in relation to its equity interest in Party C;

 

2.2.7                     it shall cause the shareholders’ meeting or the board of directors of Party C to approve the transfer of the Purchased Equity hereunder and take any and all other actions that Party A may request;

 

2.2.8                     to retain its ownership of its equity interest in Party C, it shall execute all necessary or appropriate documents, take all necessary or appropriate actions and file all necessary or appropriate complaints or make necessary and appropriate defenses against all claims;

 

2.2.9                     upon request by Party A, it shall appoint any Person designated by Party A as the director of Party C;

 

2.2.10              upon request by Party A at any time, it shall promptly and unconditionally transfer its equity interest in Party C to the Designee(s) of Party A based on the Equity Purchase Option hereunder, and Party B hereby waives the right of first refusal, if any, with respect to the equity transfer by another existing shareholder of Party C; and

 

2.2.11              it shall strictly comply with this Agreement and other contracts entered into by Party B, Party C and Party A jointly or severally, perform its obligations hereunder and thereunder and refrain from any act/omission that may affect the validity and enforceability hereof and thereof. If Party B has any remaining rights with respect to the equity interest under this Agreement or the Equity Pledge Agreement among the Parties hereto or the Power of Attorney granted in favor of Party A, Party B shall not exercise such rights, unless according to the written instructions given by Party A.

 

7

 

2.3                               Covenants of Party C

 

Party C hereby covenants that:

 

2.3.1                     if the execution and performance of this Agreement and the grant of the Equity Purchase Option or the Asset Purchase Option hereunder require consent, permit, waiver or authorization of any third party or approval, permit or exemption of any governmental authority or completion of registration or filing procedures with any governmental authority (if required in accordance with law), Party C will use its best efforts to assist the satisfaction of such conditions.

 

2.3.2                     without the prior written consent of Party A, Party C will not assist or permit Party B to transfer or otherwise dispose of, or create any Security Interest or other third party rights on, any equity interest in Party C held by Party B.

 

2.3.3                     without the prior written consent of Party A, Party C will not transfer or otherwise dispose of any material assets of Party C, or create any Security Interest or other third party rights on any assets of Party C.

 

2.3.4                     Party C will not do or permit to be done any act or action likely to have adverse effect on the interests of Party A hereunder; and

 

2.3.5                     Party C covenants that upon issuance of the Asset Purchase Notice by Party A for the exercise of the Asset Purchase Option: Party C shall immediately cause Party B to hold a shareholders’ meeting and adopt a resolution of the shareholders’ meeting and take all other necessary actions to approve the transfer by Party C of the Purchased Assets to Party A and/or the Designee(s) at the transfer price set forth herein; it shall immediately execute an asset transfer agreement with Party A and/or the Designee(s) to transfer all the Purchased Assets to Party A and/or the Designee(s) at the transfer price set forth herein, and shall cause all shareholders of Party C to provide necessary supports to Party A in accordance with requirements of Party A, laws and regulations (including provision and execution of all relevant legal documents, completion of all governmental approval and registration formalities and assumption of all relevant obligations), such that Party A and/or the Designee(s) shall obtain the ownership of the Purchased Assets, free and clear of any legal defects and any Security Interest, third party rights or any other restrictions.

 

3.                                      Representations and Warranties

 

3.1                               Each Person of Party B hereby severally but not jointly represents and warrants that, as of the date hereof and each transfer date of the Purchased Equity:

 

3.1.1                     with respect to a natural Person, he is a PRC citizen with full capacity to act, has full and independent legal status and capacity to execute, deliver and perform this Agreement and may sue or be sued as an independent party. With respect to a Person other than a natural Person, it is a legal entity validly established and lawfully existing under the laws of the PRC, has full and independent legal status and capacity to execute, deliver and perform this Agreement and may sue or be sued as an independent party.

 

8

 

3.1.2                     he or it has full power and authority to execute, deliver and perform this Agreement and all other documents to be executed by him or it in connection with the transactions contemplated hereby, and has full power and authority to consummate the transactions contemplated hereby.

 

3.1.3                     this Agreement has been lawfully and duly executed and delivered by him or it. This Agreement constitutes his or its legal and binding obligations enforceable against him or it in accordance with the terms hereof.

 

3.1.4                     he or it is the registered shareholder of the Purchased Equity; other than the pledge right created under the Equity Pledge Agreement of Party B and the proxy rights created under the Power of Attorney of Party B, the Purchased Equity held by him or it is free and clear of any lien, pledge right, claim right and other Security Interest and third party rights. In accordance with this Agreement, Party A and/or the Designee(s) may, upon exercise of option, obtain good title to the Purchased Equity, free and clear of any lien, pledge right, claim right and other Security Interest or third party rights.

 

3.2                               Party C hereby represents and warrants as follows:

 

3.2.1                     It is a limited liability company duly registered and lawfully existing under the laws of the PRC with independent legal person status. It has full and independent legal status and capacity to execute, deliver and perform this Agreement and may sue or be sued as an independent party.

 

3.2.2                     It has full internal power and authority to execute, deliver and perform this Agreement and all other documents to be executed by it in connection with the transactions contemplated hereby, and has full power and authority to consummate the transactions contemplated hereby.

 

3.2.3                     This Agreement has been lawfully and duly executed and delivered by it. This Agreement constitutes its legal and binding obligations.

 

3.2.4                     The assets of Party C are free and clear of any lien, mortgage right, claim right and other Security Interest and third party rights. In accordance with this Agreement, Party A and/or the Designee(s) may, upon exercise of option, obtain good title to the assets of Party C, free and clear of any lien, mortgage right, claim right and other Security Interest or third party rights.

 

3.2.5                     Party C does not have any outstanding debts, except for (i) debt incurred in the ordinary course of business; and (ii) debts disclosed to Party A for which Party A’s written consent has been obtained.

 

3.2.6                     If the laws of PRC requires it to be dissolved or liquidated, Party C shall sell all of its assets to the extent permitted by the laws of PRC to Party A or its Designee(s), at the lowest selling price permitted by applicable the laws of PRC. Any obligation for Party A to pay Party C as a result of such transaction shall be forgiven by Party C or any proceeds from such transaction shall be paid to Party A or its Designee(s) in partial satisfaction of the service fees under the Exclusive Business Corporation Agreement, as applicable under then-current the laws of PRC.

 

9

 

4.                                      Effective Date

 

4.1                               This Agreement shall become effective from the date on which it is duly executed by the Parties. This Agreement shall be terminated after all assets of Party C and all equity interest in Party C held by Party B have been lawfully transferred to Party A and/or another Person designated by it in accordance with the provisions hereof.

 

4.2                               Notwithstanding the foregoing, Party A shall have the right to terminate this Agreement by giving written notice to Party B at any time 30 days in advance and Party A shall not be liable for any breach of contract in respect of its unilateral termination of this Agreement.

 

5.                                      Governing Law and Resolution of Disputes

 

5.1                               Governing law

 

The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the formally published and publicly available laws of China. Matters not covered by formally published and publicly available laws of China shall be governed by international legal principles and practices.

 

5.2                               Methods of Resolution of Disputes

 

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

 

6.                                      Taxes and Expenses

 

Each Party shall pay any and all transfer and registration tax, expenses and fees incurred thereby or levied thereon in accordance with the laws of China in connection with the preparation and execution of this Agreement and the Transfer Agreements, as well as the consummation of the transactions contemplated under this Agreement and the Transfer Agreements.

 

10

 

7.                                      Notices

 

7.1                               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:

 

7.1.1                     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.

 

7.1.2                     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).

 

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

 

	
Party A:
    	
Beijing Rongqiniu Information Technology Co. Ltd.
    
	
Address:
    	
 
    
	
Attn:
    	
 
    
	
Phone:
    	
 
    
	
 
    	
 
    
	
Party B:
    	
 
    
	
Address:
    	
 
    
	
Attn:
    	
 
    
	
Phone:
    	
 
    
	
 
    	
 
    
	
Party C:
    	
Beijing Rongdiandian Information Technology Co.   Ltd.
    
	
Address:
    	
B183 2/F, No. 88 Xiangshan Road, Haidian   District, Beijing
    
	
Attn:
    	
 
    
	
Phone:
    	
 
    

 

7.3                               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.

 

8.                                      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.

 

11

 

9.                                      Further Warranties

 

The Parties agree to promptly execute documents that are reasonably required for or are conducive to the implementation of the provisions and purposes of this Agreement and take further actions that are reasonably required for or are conducive to the implementation of the provisions and purposes of this Agreement.

 

10.                               Liabilities for Breach of Contract

 

10.1                        If Party B or Party C materially violates any provision of this Agreement, Party A shall have the right to terminate this Agreement and/or claim damages against Party B or Party C; this Article 10 shall not prejudice any other rights of Party A hereunder.

 

10.2                        Unless otherwise provided by laws, in no event shall Party B or Party C have the right to terminate or rescind this Agreement.

 

11.                               Miscellaneous

 

11.1                        Amendment, change and supplement

 

Any amendment, change and supplement to this Agreement shall require the execution of a written agreement by all of the Parties.

 

11.2                        Entire agreement

 

Except for the amendments, supplements or changes in writing executed after the execution of this Agreement, this Agreement shall constitute the entire agreement reached by and among the Parties hereto with respect to the subject matter hereof, and shall supersede all prior oral and written consultations, representations and contracts reached with respect to the subject matter of this Agreement.

 

11.3                        Headings

 

The headings of this Agreement are for convenience only, and shall not be used to interpret, explain or otherwise affect the meanings of the provisions of this Agreement.

 

11.4                        Language

 

This Agreement is written in both Chinese and English language in five (5) copies, Party A, each Person of Party B and Party C having one (1) copy with equal legal validity; in case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.

 

12

 

11.5                        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.

 

11.6                        Successors

 

This Agreement shall be binding on and shall inure to the interest of the respective successors of the Parties and the permitted assigns of such Parties.

 

11.7                        Survival

 

11.7.1              Any obligations that occur or that are due as a result of this Agreement upon the expiration or early termination of this Agreement shall survive the expiration or early termination thereof.

 

11.7.2              The provisions of Sections 5, 7, 8 and this Section 11.8 shall survive the termination of this Agreement.

 

11.8                        Waivers

 

Any Party may waive the terms and conditions of this Agreement, provided that such a waiver must be provided in writing and shall require the signatures of the Parties. No waiver by any Party in certain circumstances with respect to a breach by other Parties shall operate as a waiver by such a Party with respect to any similar breach in other circumstances.

 

11.9                        Spousal Consent

 

With the execution of this Agreement on the date hereof, each of Party B shall cause his/her spouse to execute and deliver to Party A a spousal consent letter in substantially the form attached hereto as Annex I.

 

[The space below is intentionally left blank.]

 

13

 

Annex I

 

Spousal Consent Letter

 

I, being the spouse of Huang Dawei (the “Shareholder”), who has signed the foregoing Exclusive Option Agreement (the “Agreement”), hereby acknowledge that I have read and is familiar with the provisions of said Agreement and agree to be bound thereby and join therein to the extent that my agreement and joinder may be necessary: I hereby further acknowledge and agree that the shares registered in the Shareholder’s name shall be or may be pledged, sold or otherwise disposed of under the terms of said Agreement without my further consent: I further acknowledge and agree that the Shareholder may join in any future amendment or modification of said Agreement without any further signature, acknowledgement, agreement or consent on my part: and I hereafter acquire in the shares of the Shareholder in Beijing Rongdiandian Information Technology Co. Ltd. shall be subject to the provisions of said Agreement.

 

I acknowledge that I had the opportunity to employ separate counsel in connection with the preparation of said Agreement, but I consent and specifically declined to do so.

 

 

	
 
    	
Name:
    	
/s/Ye   Daqing
    
	
 
    	
Date:
    	
 
    

 

 

Annex I

 

Spousal Consent Letter

 

I, being the spouse of Lu Jiayan (the “Shareholder”), who has signed the foregoing Exclusive Option Agreement (the “Agreement”), hereby acknowledge that I have read and is familiar with the provisions of said Agreement and agree to be bound thereby and join therein to the extent that my agreement and joinder may be necessary: I hereby further acknowledge and agree that the shares registered in the Shareholder’s name shall be or may be pledged, sold or otherwise disposed of under the terms of said Agreement without my further consent: I further acknowledge and agree that the Shareholder may join in any future amendment or modification of said Agreement without any further signature, acknowledgement, agreement or consent on my part: and I hereafter acquire in the shares of the Shareholder in Beijing Rongdiandian Information Technology Co. Ltd. shall be subject to the provisions of said Agreement.

 

I acknowledge that I had the opportunity to employ separate counsel in connection with the preparation of said Agreement, but I consent and specifically declined to do so.

 

 

	
 
    	
Name:
    	
/s/[signatory]
    
	
 
    	
Date:
    	
 
    

 

 

Annex I

 

Spousal Consent Letter

 

I, being the spouse of Liu Caofeng (the “Shareholder”), who has signed the foregoing Exclusive Option Agreement (the “Agreement”), hereby acknowledge that I have read and is familiar with the provisions of said Agreement and agree to be bound thereby and join therein to the extent that my agreement and joinder may be necessary: I hereby further acknowledge and agree that the shares registered in the Shareholder’s name shall be or may be pledged, sold or otherwise disposed of under the terms of said Agreement without my further consent: I further acknowledge and agree that the Shareholder may join in any future amendment or modification of said Agreement without any further signature, acknowledgement, agreement or consent on my part: and I hereafter acquire in the shares of the Shareholder in Beijing Rongdiandian Information Technology Co. Ltd. shall be subject to the provisions of said Agreement.

 

I acknowledge that I had the opportunity to employ separate counsel in connection with the preparation of said Agreement, but I consent and specifically declined to do so.

 

 

	
 
    	
Name:
    	
/s/[signatory]
    
	
 
    	
Date:
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Purchase Option Agreement as of the date first written above.

 

Party A: Beijing Rongqiniu Information Technology Co. Ltd. (Company Seal) /seal/

 

	
By: 
    	
/s/Ye Daqing
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Ye Daqing
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Purchase Option Agreement as of the date first written above.

 

Party B: Huang Dawei

 

	
By: 
    	
/s/Huang Dawei
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Huang Dawei
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Purchase Option Agreement as of the date first written above.

 

Party B: Lu Jiayan

 

	
By: 
    	
/s/Lu Jiayan
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Lu Jiayan
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Purchase Option Agreement as of the date first written above.

 

Party B: Liu Caofeng

 

	
By: 
    	
/s/Liu Caofeng
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Liu Caofeng
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Purchase Option Agreement as of the date first written above.

 

Party C: Beijing Rongdiandian Information Technology Co. Ltd. (Company Seal) /seal/

 

	
By: 
    	
/s/Liu Caofeng
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Liu Caofeng

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