Document:

EXHIBIT 10.11

 

EXHIBIT 10.11

Equity Pledge Agreement

 

Equity Pledge Agreement

 

This Equity Pledge Agreement (this “Agreement”) is entered into by and between the following two parties below on February 5, 2015, in Beijing, the People’s Republic of China (“P.R.C.”):

 

Party A:  Yong Xu, a citizen of the P.R.C. with Chinese identification No.: 110221196803042219, with the address at No. 456, Dawangjing, Cuigezhuang Town, Beijing, P.R.C.; and

Party B: Huashang Wujie (Beijing) Internet Technology Co., Ltd., a wholly foreign-owned enterprise which has been duly organized and is validly existing under the laws of the P.R.C., with its address at Room 255, Building 2#, No. 15, Wanyuan Street, Beijing Economic-Technological Development Area, Beijing, P.R.C.

In this Agreement, Party A, Party B shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas:

 

1.

On the date of execution of this Agreement, Party A is one of the shareholders of Beijing UKT Investment Management Co., Ltd. (“UKT Company”) and duly holds 73% of the shares of UKT Company;

2.

UKT Company is a corporation incorporated and validly existing in the territory of the PRC pursuant to the law of the PRC with business license registration number: 110105014211546 and its address at Floor No. 23, Building A, Caizhi International Mansion, No. 18, Zhongguancun East Road, Haidian District, Beijing, P.R.C.

3.

In order to ensure all the shareholders of UKT Company and/or UKT Company to perform all obligations under the Management Entrustment Agreement, Power of 

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Attorney and Exclusive Purchase Option Agreement (collectively referred to as “Onshore Agreements”) entered into on the same day as this Agreement, Party A agrees to pledge all the shares held by Party A in UKT Company to Party B as the guarantee for the performance of the Onshore Agreements by the related responsible parties pursuant to the terms and conditions of this Agreement, and Party B agrees to accept such pledge provided by Party A.

 

NOW, THEREFORE, under the principle of equality and mutual benefit and with the consensus reached through negotiation, both parties have entered into this Agreement and agreed to abide by it pursuant to the applicable laws, regulations and rules of the PRC(“laws of the PRC”).

 

1.

Pledge of Equity

1.1

In order to guarantee UKT Company, all the shareholders of UKT Company (“Shareholders” )and other related responsible parties to perform all obligations and liabilities under the Onshore Agreements, Party A agrees to pledge the Pledged Equities (as defined in Section 4 herein) under this Agreement to Party B pursuant to the terms and conditions of this Agreement, and Party B agrees to accept the above equity pledge, and have priority right to the proceeds from the conversion, auction, or sale of the Pledged Equities.

1.2

The pledge under this Agreement includes the rights owned by Party B to collect the fees (including legal fees), expenses, interests, losses, liquidated damages and compensations that UKT Company and/or the Shareholders shall pay under the Onshore Agreements, and civil liabilities that UKT Company and/or the Shareholders shall bear in case the Onshore Agreements wholly or partially become null and void due to any reason.

1.3

Unless consent in writing by Party B, after the execution of this Agreement, the pledge under this Agreement will be terminated only when UKT Company and the Shareholders have performed all the obligations and liabilities under the Onshore 

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Agreements and Party B confirms such fulfillment in writing.  If UKT Company or the Shareholders have not fully performed all or part of its or their obligations or liabilities under the Onshore Agreements at the expiration of such agreements, Party B will maintain the pledge hereunder up to the date when all such obligations and liabilities are fully performed.

 

2.

Representations and Warranties

 

2.1

Party A represents and warrants to Party B, on the day of execution of this Agreement:

2.1.1.

Party A has the right to execute this Agreement and the capability to perform the same;

2.1.2.

Party A has gone through necessary internal decision-making procedures, obtained proper authority, acquire all the necessary consents and approvals of any requisite third party and government authority to enter into and perform this Agreement and this Agreement does not violate the laws of the PRC and contracts binding or affecting it;

2.1.3.

upon the execution, this Agreement will constitute the legal, valid, binding obligation of both parties and both parties will be subject to compulsory enforcement pursuant to the terms and conditions of this Agreement;

2.1.4.

Party A is the exclusive and duly owner of the Pledged Equities, has paid up all capitals subscribed, has obtained the capital verification report issued by the duly qualified Certified Public Accounting firm and has the right to set the pledge of the first priority on such Pledged Equities for Party B;

2.1.5.

except for the pledge under this Agreement, there is not: (i) any other encumbrance or any security interests for the benefit of any third party on the equity interests pledged by Party A (including but not limited to pledge); (ii) any mortgages or other guarantee rights set for any third party; (iii) any 

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Equity Pledge Agreement

pending or possible civil, administrative or criminal litigation or administrative punishment or arbitration relating to the equity interests hereunder on the date of execution of this Agreement; (iv) any trusts or conditions of limited use; (v) any exemptions from lawsuit, execution, enforcement or other legal proceedings; or (vi) any outstanding taxes, fees or undecided legal procedures related with the equity interests hereunder on the date of execution of this Agreement;

2.1.6.

Party A has not effected and will not effect an Event of Default (as defined in Section 8) and has no knowledge of any risk of an Event of Default under this Agreement or any other agreement to which Party A are a party;

2.1.7.

Party A has abided by and performed all obligations stipulated by the applicable laws, regulations and rules and all applicable authorizations and permissions; Party A does not have any circumstances that go against any laws, regulations or rules and may have material and adverse effect on the validity, effect, performance and enforceability of this Agreement; and

2.1.8.

to the best knowledge of Party A, no court, arbitral tribunal or government authority starts to take any legal proceedings or administrative proceedings against Party A or the Pledged Equities, neither does any courts, arbitral tribunals or government authority start to file any legal proceedings or administrative proceedings against Party A or the Pledged Equities, and Party A has no knowledge of any such risks.

2.2

Party B presents and warranties to Party A on the day of execution of this Agreement:

2.2.1.

it has the right, to execute this Agreement and the capability to perform the same;

2.2.2.

it has carried out necessary internal decision-making procedures, obtained proper authority, acquire the necessary consents and approvals of any third 

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party and government authority to enter into and perform this Agreement and it does not go against the laws and contracts binding or affecting it; and

2.2.3.

upon the execution, this Agreement will constitute the legal, valid, binding obligation of both parties and both parties shall be subject to compulsory enforcement pursuant to the terms and conditions of this Agreement.

3.

Guaranteed Liabilities

 

The liabilities guaranteed under this Agreement are the obligations and liabilities of UKT Company, the Shareholders, and all related responsible parties incurred under the Onshore Agreements (including the extended agreements to these agreements and the revised and supplementary agreements to such agreements), including but not limited to the Entrustment fees, interest, liquidated damages, indemnities, fees for realization of the creditor’s right arising out of and in relation to the Onshore Agreements and payable by the UKT Company and/or the Shareholders to Party B, and the damages and other fees that are payable by UKT Company and/or the Shareholders to Party B due to the default.

4.

Pledged Equities

 

The Pledged Equities are 73% of the shares of UKT Company which Party A duly and legally holds and all rights and proceeds of or in relation to such equities.

 

5.

Pledge Procedures and Transaction

 

Within thirty (30) days of the execution of this Agreement, Party A shall transact the registration procedures in relation to this pledge of equity at Tongzhou Office of Beijing Administration of Industry and Commerce.  If the registration for such pledge of equity fails due to the reason of Tongzhou Office of Beijing Administration of Industry and Commerce, Party A shall demand UKT Company to write down the matter about such pledge of equity into the stock ledger of UKT Company and apply to Tongzhou Office of Beijing Administration of Industry and Commerce for the transaction of the registration of the pledge of equity within 

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thirty (30) days as of the day when Tongzhou Office of Beijing Administration of Industry and Commerce approves such registration or the information about the approval for such registration is obtained.

 

6.

Party A’s Undertaking

 

Within the term of this Agreement, Party A undertakes to Party B that:

 

6.1

without the prior written consent of Party B, Party A shall not impose any other encumbrance (whether prevailing over the pledge under this Agreement or not) or other restrictive conditions on all or part of the Pledged Equities;

6.2

without the prior written consent of Party B, Party A shall not sell, lease, lend, transfer, assign, grant, remortgage, trust, or participate in equity investment by, the Pledged Equities or dispose by any other means all or part of the Pledged Equities;

6.3

Party A shall not use or allow others to use the Pledged Equities for any actions or events against any laws or this Agreement;

6.4

after receiving any notice, order, ruling, verdict or other instruments in relation to the Pledged Equities from the government, judicial authority or arbitral organization, Party A shall immediately notify Party B and within the period provided by the applicable laws take all necessary steps to reduce the risks that such notice, order or other instruments may bring to the Pledged Equities.  Where Party B deems necessary, Party A shall file a lawsuit, arbitration or administrative lawsuit against the above notice, order or other instruments and bear all fees that arising therefrom and in relation thereto;

6.5

Party A shall immediately notify Party B of any events or any received notices which may affect the equity interest of Party A or any part of its right, and any events or any received notices which may change the covenants and obligations of Party A under this Agreement or which may affect the performance of its obligations under this Agreement, and take actions in accordance with the instructions of Party B;

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6.6

Party A agrees that the right of Party B to exercise the pledge pursuant to this Agreement shall not be suspended or hampered by Party A or any successors or transferees of Party A or any other persons;

6.7

Party A warrants to Party B that in order to protect and perfect the security over the obligations of Party A and/or UKT Company under the Onshore Agreements, Party A shall make any necessary amendment (if applicable), execute in good faith and cause any third party who has interests in the pledge to execute all the title certificates, contracts, and /or perform and cause any third party who has interests to take action as required by Party B and make access to exercise the rights and authorization vested in Party B under this Agreement, and execute all the documents with respect to the changes of equity interests owned by Party B or another party designated by Party B, and provides Party B with all the necessary documents within the reasonable time; and

6.8

Party A warrants to Party B that Party A will comply with and perform all the guarantees, covenants, agreements, representations and conditions for the benefits of Party B.  Party A shall indemnity Party B for all the damages suffered by Party B for the reasons that Party A does not perform or fully perform such guarantees, covenants, agreements, representations and conditions.

7.

Exercise of Pledge

 

7.1

Subject to Clause 8.3, Party B may dispose the Pledged Equities at any time upon or after sending the notice for the exercise of the pledge.

7.2

Party B shall have the priority right to dispose all or part of Pledged Equities under this Agreement (including but not limited to purchase of shares at discounted price by agreement, sell at auction by the laws of the PRC, sell-off Pledged Equities) as per legal procedures and to be paid with the sum gained from the disposal until all guaranteed liabilities of UKT Company and the Shareholders under the Onshore Agreements are fulfilled completely.

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7.3

Where Party B disposes the Pledged Equities pursuant to this Agreement, Party A shall provide and cause UKT Company to provide necessary assistance so that Party B can realize its pledge.

8.

Event of Default

 

8.1

The following events shall be regarded as an Event of Default:

8.1.1.

where Party A and/or UKT Company and related responsible parties fail to perform any obligations under the Onshore Agreements in time or fails to discharge any guaranteed liability as scheduled in full sum;

8.1.2.

where there are any falsity, fraud, misleading statements or errors relating to any representation and undertaking Party A makes in Section 2 herein;

8.1.3.

where Party A violates any undertaking in Section 6 of this Agreement;

8.1.4.

where Party A violates any other terms and conditions of this Agreement; 

8.1.5.

where Party A refuses or intentionally delays the registration procedures for the pledge under this Agreement and fails to correct such action within ten (10) days as of the day when Party B requires in writing to do so;

8.1.6.

where any loan, guarantee, indemnity, undertaking or other compensation liability of Party A: (i) is required to be repaid or performed in advance due to an event of default; or (ii) is due but unable to be repaid or performed as scheduled, which makes Party B reasonably believe that the ability of Party A to perform its obligations under this Agreement has been materially and adversely affected;

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8.1.7.

where this Agreement becomes ineffective, revocable, unenforceable or Party A cannot continue performing its obligations under this Agreement in time and fully due to the fault (including omission) of Party A after the issuance of new laws of the PRC;

8.1.8.

Party A waive the pledged equity interests or transfers the pledged equity interests without prior written consent from the Party B;

8.1.9.

any approval, permits, licenses or authorization from the competent authority of the government needed to perform under this Agreement or validate this Agreement are withdrawn, suspended, invalidated or materially amended;

8.1.10.

the property of Party A is adversely changed and causes Party B to deem that the capability of Party A to perform the obligations herein is affected; and

8.1.11.

other circumstances in which Party B cannot exercise and dispose the pledge due to the fault (including omission) of Party A.

8.2

If Party A knows or should have known the occurrence of any event stated above in Subsection 8.1 or any matter that may incur the above events, Party A shall immediately notify Party B in writing.

8.3

Unless Party A immediately takes the measures satisfactory to Party B to correct the Event of Default listed in Subsection 8.1 above, Party B may send written notice of exercising the pledge to Party A at any time upon or after the occurrence of Event of Default, demand Party A and/or UKT Company to: (i) make full payment of the outstanding fees pursuant to the Onshore Agreement, and (ii) immediate perform their obligations under the Onshore Agreements, and require disposal of the Pledged Equities pursuant to this Agreement.

8.4

The Event of Default provided in this Section 8 will not affect the exercise of other remedies by the parties pursuant to the laws of the PRC.

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9.

Liability in the Event of Default

 

Both parties shall sufficiently perform their obligations under this Agreement.  Either party breaching this Agreement shall bear the liability as arising therefrom and in relation thereto.  If such breach causes damages to the other party, the breaching party shall indemnify the other party for all such damages.

10.

Assignment

10.1

 Without the prior written consent of Party B, Party A shall not have the right to assign or delegate its rights and obligations under this Agreement.

10.2

This Agreement shall be binding on Party A and its successors and permitted assigns, and shall be valid with respect to Party B and each of its successors and assigns.

10.3

At any time, Party B may assign any and all of its rights and obligations under the Onshore Agreements to its designee(s) (natural or legal persons), in which case the assigns shall have the rights and obligations of Party B under this Agreement, as if it were the original party to this Agreement. When Party B assigns the rights and obligations under the Onshore Agreements, at the request of Party B, Party A shall execute relevant agreements or other documents relating to such assignment.

10.4

In the event of a change in the pledgee due to an assignment, Party A shall, at the request of Party B, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement, and register for change of the pledgee with the competent Administration of Industry and Commerce.

11.

Termination

 

Upon the date that all guaranteed liabilities of UKT Company and Party A under the Onshore Agreements are fulfilled completely, this Agreement shall be terminated.  In such case, Party B 

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shall cancel the pledge registration under this Agreement as soon as possible within the reasonable and feasible period.

 

12.

Taxes, Fees and Other Expenses

 

All taxes, fees and other expenses arising from the execution and performance of 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 B.

 

13.

Confidentiality

 

13.1

Both parties agree that, all materials, documents, communications and other information obtained in the negotiation, execution or performance of this Agreement, whether commercial, technical or in any other form (“Confidential information"), shall be strictly kept confidential and used only for the performance of the obligations under this Agreement.  Unless the other parties consent in writing, neither of the parties shall release, leak or disclose any Confidential Information to any third party.

 

13.2

Either party may disclose the Confidential Information in the following circumstances: (i) where the laws, court orders or the competent courts with jurisdiction require, and such disclosure may be conducted only within such requirement; (ii) where the competent authority or government department requires; (iii) where such Confidential Information has been known to the general public; (iv) where such Confidential Information was owned duly and legally by the disclosing party rather obtained from the other party before the disclosing party obtains it; (v) the information is required to be disclosed subject to the applicable laws or the rules or provisions of a stock exchange or securities governing authority; and (vi) the information is disclosed by each party to its legal or financial consultant relating the transaction of this Agreement, and this legal or financial consultant shall comply with the confidentiality set forth in this Section 13.  However, for the circumstances aforesaid, where either party discloses the Confidential Information, it shall inform the other party of the Confidential Information to be disclosed.

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13.3

Nonetheless other provisions of this Section 13, either party shall have the right to disclose the Confidential Information to its lawyer, accountant, other professional consultants, directors or senior officers; such personnel shall undertake in writing to treat such information as Confidential Information by taking the measures similar to those provided in 13.1 of this Section.

 

13.4

The disclosure of the Confidential Information by staff or employed institution of any party shall be deemed as the disclosure of such Confidential Information by such party, and such party shall bear the liabilities for breaching the agreement.

 

13.5

This Section 13 shall survive whatever this Agreement is invalid, amended, revoked, terminated or unable to implement by any reason.

14.

Governing Law and Dispute Resolution

14.1

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 the PRC.  Matters not covered by formally published and publicly available laws of the PRC shall be governed by international legal principles and practices.

 

14.2

Both parties agree that any dispute arising from or in relation to this Agreement shall first be settled by the friendly negotiation of both parties.  If the negotiation fails within 45 days, either party shall have the right to file the dispute with China International Economic and Trade Arbitration Commission (“CIETAC”) in Beijing for arbitration pursuant to the currently effective arbitration rules of CIETAC at the time of application.  This arbitration shall be final and bind both parties and shall be enforceable in any court of competent jurisdiction.  The arbitration fees shall be born by the losing party.

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14.3

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.

 

15.

Effect, Change and Recession of this Agreement

15.1

This Agreement shall come into effect on and after the date that it is signed and/or stamped by both parties.

15.2

After this Agreement comes into effect, except otherwise provided by this Agreement, neither party shall amend or terminate this Agreement in advance.  If it is necessary to amend or terminate this Agreement, both parties shall negotiate to reach a written agreement.  Before such written agreement is reached, this Agreement shall remain in effect.

16.

Physical Possession Of Documents

 

16.1

Party A shall deliver the physical possession of the certificates of registration (original) of the pledge to Party B, provide the proper record relating to the registration of such pledge to Party B, and transact various approval and examination, registration and filling procedures required by the laws of the PRC within thirty (30) business days as of the date of execution of this Agreement or an earlier time agreed upon by the parties.

16.2

If the subjects of the pledge change and such changes need to be registered or filed, Party A shall register or file or cause UKT Company to register or file such changes within five (5) business days as of the day of change, and shall deliver relevant registration of change or filling documents to Party B.

16.3

During the term of the equity pledge, Party A shall instruct UKT Company not to distribute any dividends, or adopt any profits distribution plans; if Party A shall be 

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entitled to collect any interests other than distribution plans of dividends and profits, Party A shall instruct UKT Company to transform such interests into cash and pay such interests into the bank account designated by Party B in accordance with Party B’s requirements, and Party A shall not use any money deposited into the bank account without the prior written consent of Party B.

16.4

During the term of equity pledge, if Party A subscribes new capital contribution or accepts an equity transfer (“Newly-added Equities”), the Newly-added Equities shall be automatically become Pledged Equities under this Agreement, and Party A shall accomplish all the procedures with respect to the pledge of the Newly-added Equities within ten (10) business days after acquiring the Newly-added Equities.  If Party A fails to accomplish the relevant procedures as specified in this Section 16, Party B shall have the right to exercise the pledge right under this Agreement.

 

17.

General Terms

17.1

Entire Agreement.  This Agreement and the Exhibits and Schedules hereto contain the entire understanding between the parties, no other representations, warranties or covenants having induced any party to execute this Agreement, and supersede all prior or contemporaneous agreements with respect to the subject matter hereof.  All references to schedules and exhibits are to exhibits and schedules attached to and to become a part of this Agreement unless otherwise indicated.

 

17.2

Amendment.  Any amendment and/or rescission shall be in writing and signed by the authorized representatives of both parties.  Such revision shall be a valid integral part of this Agreement.

 

17.3

Headings.  The headings of any Sections or other portion of this Agreement are for convenience only and are not to be considered in construing this Agreement.

17.4

Construction.  References in this Agreement to "Sections," "Schedules" and "Exhibits" shall be to the Sections, Schedules and Exhibits of this Agreement, unless otherwise 

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specifically provided; any use in this Agreement of the singular or plural, or the masculine, feminine or neuter gender, shall be deemed to include the others, unless the context otherwise requires; the words "herein”, "hereof" and "hereunder" and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; the word "including" when used in this Agreement shall mean “including without limitation”; and except as otherwise specified in this Agreement, all references in this Agreement (i) to any agreement, document, certificate or other written instrument shall be a reference to such agreement, document, certificate or instrument, in each case together with all exhibits, schedules, attachments and appendices thereto, and as amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof; and (ii) to any law, statute or regulation shall be deemed references to such law, statute or regulation as the same may be supplemented, amended, consolidated, superseded or modified from time to time.

 

17.5

Severability.  Any provision hereof that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability, without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.6

Waiver.  No failure or delay of either party to enforce any right hereunder shall constitute a waiver of any such right hereunder.  No waiver shall be effective hereunder unless in writing and a waiver shall only be effective for the specific act or circumstance for which it is given and not for any future act or circumstance.

 

17.7

Language.  This Agreement is in both Chinese and English and signed by both parties, and the two versions have the same effect.  Should there be any discrepancy between the two language versions, the Chinese version shall prevail.

 

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17.8

Copies of this Agreement.  This Agreement shall be executed in four counterparts; each party holds one and the rest are used for the transaction of related formalities.  Each of the copies shall be deemed as the original one and has the same effect.

 

[The remainder of this page is intentionally left blank.]

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In witness hereof, both parties have signed this Agreement on the date specified on the first page of this Agreement by their respective authorized representatives.

Party A:  Yong Xu (signature):

Party B: Huashang Wujie (Beijing) Internet Technology Co., Ltd. (seal)

Legal Representative (signature):

 

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Equity Pledge Agreement

 

Equity Pledge Agreement

 

This Equity Pledge Agreement (this “Agreement”) is entered into by and between the following two parties below on February 5, 2015, in Beijing, the People’s Republic of China (“P.R.C.”):

 

Party A:  Yahong Zhao, a citizen of the P.R.C. with Chinese identification No.: 130404196503310021, with the address at Room 303, Building 1#,  No. 59, Jianshe Avenue, Handan City, Hebei Province, P.R.C.; and

Party B:HuashangWujie (Beijing) Internet Technology Co., Ltd., a wholly foreign-owned enterprise which has been duly organized and is validly existing under the laws of the P.R.C., with its address at Room 255, Building 2#, No. 15, Wanyuan Street, Beijing Economic-Technological Development Area, Beijing, P.R.C.

In this Agreement, Party A, Party B shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas:

 

1.

On the date of execution of this Agreement, Party A is one of the shareholders of Beijing UKT Investment Management Co., Ltd.(“UKT Company”) and duly holds 20% of the shares of UKT Company;

2.

UKT Company is a corporation incorporated and validly existing in the territory of the PRC pursuant to the law of the PRC with business license registration number:110105014211546 and its address atFloor No. 23, Building A, Caizhi International Mansion, No. 18, Zhongguancun East Road, Haidian District, Beijing, P.R.C..

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Equity Pledge Agreement

3.

In order to ensure all the shareholders of UKT Companyand/or UKT Company to perform all obligations under the Management Entrustment Agreement, Power of Attorney and Exclusive Purchase Option Agreement (collectively referred to as “Onshore Agreements”) entered into on the same day as this Agreement, Party A agrees to pledge all the shares held by Party A in UKT Company to Party B as the guarantee for the performance of the Onshore Agreements by the related responsible parties pursuant to the terms and conditions of this Agreement, and Party B agrees to accept such pledge provided by Party A.

 

NOW, THEREFORE, under the principle of equality and mutual benefit and with the consensus reached through negotiation, both parties have entered into this Agreement and agreed to abide by it pursuant to the applicable laws, regulations and rules of the PRC(“laws of the PRC”).

 

1.

Pledge of Equity

1.1

In order to guarantee UKT Company,all the shareholders of UKT Company(“Shareholders” )and other related responsible parties to perform all obligations and liabilities under the Onshore Agreements, Party A agrees to pledge the Pledged Equities (as defined in Section 4 herein) under this Agreement to Party B pursuant to the terms and conditions of this Agreement, and Party B agrees to accept the above equity pledge, and have priority right to the proceeds from the conversion, auction, or sale of the Pledged Equities.

1.2

The pledge under this Agreement includes the rights owned by Party B to collect the fees (including legal fees), expenses, interests, losses, liquidated damages and compensations thatUKT Companyand/or the Shareholders shall pay under the Onshore Agreements, and civil liabilities that UKT Companyand/or the Shareholders shall bear in case the Onshore Agreements wholly or partially become null and void due to any reason.

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Equity Pledge Agreement

1.3

Unless consent in writing by Party B, after the execution of this Agreement, the pledge under this Agreement willbe terminated only when UKT Company and the Shareholders have performed all the obligations and liabilities under the Onshore Agreements and Party B confirms such fulfillmentin writing.If UKT Company or the Shareholders have not fully performed all or part of its or their obligations or liabilities under the Onshore Agreements at the expiration of such agreements, Party B will maintain the pledge hereunder up to the date when all such obligations and liabilities are fully performed.

 

2.

Representations and Warranties

 

2.1

Party A represents and warrants to Party B, on the day of execution of this Agreement:

2.1.1.

Party A has the right to execute this Agreement and the capability to perform the same;

2.1.2.

Party A has gone through necessary internal decision-making procedures, obtained proper authority, acquire all the necessary consents and approvals of any requisite third party and government authority to enter into and perform this Agreement and this Agreement does not violate the laws of the PRC and contracts binding or affecting it;

2.1.3.

upon the execution, this Agreement will constitute the legal, valid, binding obligation of both parties and both parties will be subject to compulsory enforcement pursuant to the terms and conditions of this Agreement;

2.1.4.

Party A is the exclusive and duly owner of the Pledged Equities, has paid up all capitals subscribed, has obtained the capital verification report issued by the duly qualified Certified Public Accounting firm and has the right to set the pledge of the first priority on such Pledged Equities for Party B;

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Equity Pledge Agreement

2.1.5.

except for the pledge under this Agreement, there is not: (i) any other encumbrance or any security interests for the benefit of any third party on the equity interests pledged by Party A (including but not limited to pledge); (ii) any mortgages or other guarantee rights set for any third party; (iii) any pending or possible civil, administrative or criminal litigation or administrative punishment or arbitration relating to the equity interests hereunder on the date of execution of this Agreement; (iv) any trusts or conditions of limited use; (v) any exemptions from lawsuit, execution, enforcement or other legal proceedings; or (vi) any outstanding taxes, fees or undecided legal procedures related with the equity interests hereunder on the date of execution of this Agreement;

2.1.6.

Party A has not effected and will not effect an Event of Default (as defined in Section8) and has no knowledge of any risk of an Event of Default under this Agreement or any other agreement to which Party A are a party;

2.1.7.

Party A has abided by and performed all obligations stipulated by the applicable laws, regulations and rules and all applicable authorizations and permissions; Party A does not have any circumstances that go against any laws, regulations or rules and may have material and adverse effect on the validity, effect, performance and enforceability of this Agreement; and

2.1.8.

to the best knowledge of Party A, no court, arbitral tribunal or government authority starts to take any legal proceedings or administrative proceedings against Party A or the Pledged Equities, neither does any courts, arbitral tribunals or government authority start to file any legal proceedings or administrative proceedings against Party A or the Pledged Equities, and Party A has no knowledge of any such risks.

2.2

Party B presents and warranties to Party A on the day of execution of this Agreement:

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Equity Pledge Agreement

2.2.1.

it has the right, to execute this Agreement and the capability to perform the same;

2.2.2.

it has carried out necessary internal decision-making procedures, obtained proper authority, acquire the necessary consents and approvals of any third party and government authority to enter into and perform this Agreement and it does not go against the laws and contracts binding or affecting it; and

2.2.3.

upon the execution, this Agreement will constitute the legal, valid, binding obligation of both parties and both parties shall be subject to compulsory enforcement pursuant to the terms and conditions of this Agreement.

3.

Guaranteed Liabilities

 

The liabilities guaranteed under this Agreement are the obligations and liabilities of UKT Company,the Shareholders, and all related responsible parties incurred under the Onshore Agreements (including the extended agreements to these agreements and the revised and supplementary agreements to such agreements), including but not limited to the Entrustment fees, interest, liquidated damages, indemnities, fees for realization of the creditor’s right arising out of and in relation to the Onshore Agreements and payable by the UKT Companyand/or the Shareholders to Party B, and the damages and other fees that are payable by UKT Companyand/or the Shareholders to Party B due to the default.

4.

Pledged Equities

 

The Pledged Equities are 20% of the shares of UKT Company which Party A duly and legally holds and all rights and proceeds of or in relation to such equities.

 

5.

Pledge Procedures and Transaction

 

Within thirty (30) days of the execution of this Agreement, Party A shall transact the registration procedures in relation to this pledge of equity at Tongzhou Office of Beijing 

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Equity Pledge Agreement

Administration of Industry and Commerce.  If the registration for such pledge of equity fails due to the reason of Tongzhou Office of Beijing Administration of Industry and Commerce, Party A shall demand UKT Companyto write down the matter about such pledge of equity into the stock ledger of UKT Companyand apply to Tongzhou Office of Beijing Administration of Industry and Commerce for the transaction of the registration of the pledge of equity within thirty (30) days as of the day when Tongzhou Office of Beijing Administration of Industry and Commerce approves suchregistration or the information about the approval for such registration is obtained.

 

6.

Party A’s Undertaking

 

Within the term of this Agreement, Party A undertakes to Party B that:

 

6.1

without the prior written consent of Party B, Party A shall not impose any other encumbrance (whether prevailing over the pledge under this Agreement or not) or other restrictive conditions on all or part of the Pledged Equities;

6.2

without the prior written consent of Party B, Party A shall not sell, lease, lend, transfer, assign, grant, remortgage, trust, or participate in equity investment by, the Pledged Equities or dispose by any other means all or part of the Pledged Equities;

6.3

Party A shall not use or allow others to use the Pledged Equities for any actions or events against any laws or this Agreement;

6.4

after receiving any notice, order, ruling, verdict or other instruments in relation to the Pledged Equities from the government, judicial authority or arbitral organization,Party Ashall immediately notify Party B and within the period provided by the applicable laws take all necessary steps to reduce the risks that such notice, order or other instruments may bring to the Pledged Equities.  Where Party B deems necessary, Party A shall file a lawsuit, arbitration or administrative lawsuit against the above notice, order or other instruments and bear all fees that arising therefrom and in relation thereto;

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6.5

Party A shall immediately notify Party B of any events or any received notices which may affect the equity interest of Party Aor any part of its right, and any events or any received notices which may change the covenants and obligations of Party A under this Agreement or which may affect theperformance of its obligations under this Agreement, and take actions in accordance with the instructions of Party B;

6.6

Party A agrees that the right of Party B to exercise the pledge pursuant to this Agreement shall not be suspended or hampered by Party A or any successors or transferees of Party A or any other persons;

6.7

Party A warrants to Party B that in order to protect and perfect the security over the obligations of Party A and/or UKT Company under the Onshore Agreements, Party A shall make any necessary amendment (if applicable), execute in good faith and cause any thirdparty who has interests in the pledge to execute all the title certificates, contracts, and /or perform and cause any third party who has interests to take action as required by Party B and make access to exercise the rights and authorization vested in Party B under this Agreement, and execute all the documents with respect to the changes of equity interests owned by Party B or another party designated by Party B, and provides Party B with all the necessary documents within the reasonable time; and

6.8

Party A warrants to Party B that Party A will comply with and perform all the guarantees, covenants, agreements, representations and conditions for the benefits of Party B.  Party A shall indemnity Party B for all the damages suffered by Party B for the reasons that Party A does not perform or fully perform such guarantees, covenants, agreements, representations and conditions.

7.

Exercise of Pledge

 

7.1

Subject to Clause 8.3, Party B may dispose the Pledged Equities at any time upon or after sending the notice for the exercise of the pledge.

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7.2

Party B shall have the priority right to dispose all or part of Pledged Equities under this Agreement (including but not limited to purchase of shares at discounted price by agreement, sell at auction by the laws of the PRC, sell-off Pledged Equities) as per legal procedures and to be paid with the sum gained from the disposal until all guaranteed liabilities of UKT Company and the Shareholders under the Onshore Agreements are fulfilled completely.

7.3

Where Party B disposes the Pledged Equities pursuant to this Agreement, Party A shall provide and cause UKT Companyto provide necessary assistance so that Party B can realize its pledge.

8.

Event of Default

 

8.1

The following events shall be regarded as an Event of Default:

8.1.1.

where Party A and/or UKT Company and related responsible parties fail to perform any obligations under the Onshore Agreements in time or fails to discharge any guaranteed liability as scheduled in full sum;

8.1.2.

where there are any falsity, fraud, misleading statements or errors relating toany representation and undertaking Party A makes in Section 2 herein;

8.1.3.

where Party A violates any undertaking in Section 6 of this Agreement;

8.1.4.

where Party A violates any other terms and conditions of this Agreement; 

8.1.5.

where Party Arefuses or intentionally delays the registration procedures for the pledge under this Agreement and fails to correct such action within ten (10) days as of the day when Party B requires in writing to do so;

8.1.6.

where any loan, guarantee, indemnity, undertaking or other compensation liability of Party A: (i) is required to be repaid or performed in advance due to 

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Equity Pledge Agreement

an event of default; or (ii) is due but unable to be repaid or performed as scheduled, which makes Party B reasonably believe that the ability of Party A to perform its obligations under this Agreement has been materially and adversely affected;

8.1.7.

where this Agreement becomes ineffective, revocable, unenforceable or Party A cannot continue performing its obligations under this Agreement in time and fully due to the fault (including omission) of Party A after the issuance of new laws of the PRC;

8.1.8.

Party A waive the pledged equity interests or transfers the pledged equity interests without prior written consent from the Party B;

8.1.9.

any approval, permits, licenses or authorization from the competent authority of the government needed to perform under this Agreement or validate this Agreement are withdrawn, suspended, invalidated or materially amended;

8.1.10.

the property of Party A is adversely changed and causes Party B to deem that the capability of Party A to perform the obligations herein is affected; and

8.1.11.

other circumstances in which Party B cannot exercise and dispose the pledge due to the fault (including omission) of Party A.

8.2

If Party A knows or should have known the occurrence of any event stated above in Subsection 8.1 or any matter that may incur the above events, Party A shall immediately notify Party B in writing.

8.3

Unless Party A immediately takes the measures satisfactory to Party B to correct the Event of Default listed in Subsection8.1 above, Party B may send written notice of exercising the pledge to Party A at any time upon or after the occurrence of Event of Default, demand Party Aand/or UKT Companyto: (i) make full payment of the outstanding fees pursuant to the Onshore Agreement, and (ii) immediate perform their 

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Equity Pledge Agreement

obligations under the Onshore Agreements,and require disposal of the Pledged Equities pursuant to this Agreement.

8.4

The Event of Default provided in this Section 8 will not affect the exercise of other remedies by the parties pursuant to the laws of the PRC.

9.

Liability in the Event of Default

 

Both parties shall sufficiently perform their obligations under this Agreement.  Either party breaching this Agreement shall bear the liability as arising therefrom and in relation thereto.  If such breach causes damages to the other party, the breaching party shall indemnify the other party for all such damages.

10.

Assignment

10.1

 Without the prior written consent of Party B, Party A shall not have the right to assign or delegate its rights and obligations under this Agreement.

10.2

This Agreement shall be binding on Party A and its successors and permitted assigns, and shall be valid with respect to Party B and each of its successors and assigns.

10.3

At any time, Party B may assign any and all of its rights and obligations under the Onshore Agreements to its designee(s) (natural or legal persons), in which case the assigns shall have the rights and obligations of Party B under this Agreement, as if it were the original party to this Agreement. When Party B assigns the rights and obligations under the Onshore Agreements, at the request of Party B,Party A shall execute relevant agreements or other documents relating to such assignment.

10.4

In the event of a change in the pledgee due to an assignment, Party A shall, at the request of Party B, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement, and register for change of the pledgee with the competent Administration of Industry and Commerce.

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11.

Termination

 

Upon the date that all guaranteed liabilities of UKT Company and Party Aunder the Onshore Agreements are fulfilled completely, this Agreement shall be terminated.  In such case, Party B shall cancel the pledge registration under this Agreement as soon as possible within the reasonable and feasible period.

 

12.

Taxes, Fees and Other Expenses

 

All taxes, fees and other expenses arising from the execution and performance of 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 B.

 

13.

Confidentiality

 

13.1

Both parties agree that, all materials, documents, communications and other information obtained in the negotiation, execution or performance of this Agreement, whether commercial, technical or in any other form (“Confidential information"), shall be strictly kept confidential and used only for the performance of the obligations under this Agreement.  Unless the other parties consent in writing, neither of the parties shall release, leak or disclose any Confidential Information to any third party.

 

13.2

Either party may disclose the Confidential Information in the following circumstances: (i) where the laws, court orders or the competent courts with jurisdiction require, and such disclosure may be conducted only within such requirement; (ii) where the competent authority or government department requires; (iii) where such Confidential Information has been known to the general public; (iv) where such Confidential Information was owned duly and legally by the disclosing party rather obtained from the other party before the disclosing party obtains it; (v) the information is required to be disclosed subject to the applicable laws or the rules or provisions of a stock exchange or securities governing authority; and (vi) the information is disclosed 

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Equity Pledge Agreement

by each party to its legal or financial consultant relating the transaction of this Agreement, and this legal or financial consultant shall comply with the confidentiality set forth in this Section 13.However, for the circumstances aforesaid, where either party discloses the Confidential Information, it shall inform the other party of the Confidential Information to be disclosed.

 

13.3

Nonetheless other provisions of this Section 13, either party shall have the right to disclose the Confidential Information to its lawyer, accountant, other professional consultants, directors or senior officers; such personnel shall undertake in writing to treat such information as Confidential Information by taking the measures similar to those provided in 13.1 of this Section.

 

13.4

The disclosure of the Confidential Information by staff or employed institution of any party shall be deemed as the disclosure of such Confidential Information by such party, and such party shall bear the liabilities for breaching the agreement.

 

13.5

This Section13 shall survive whatever this Agreement is invalid, amended, revoked, terminated or unable to implement by any reason.

14.

Governing Law and Dispute Resolution

14.1

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 the PRC. Matters not covered by formally published and publicly available laws of the PRC shall be governed by international legal principles and practices.

 

14.2

Both parties agree that any dispute arising from or in relation to this Agreement shall first be settled by the friendly negotiation of both parties.  If the negotiation fails within 45 days, either party shall have the right to file the dispute with China International Economic and Trade Arbitration Commission (“CIETAC”) in Beijing for arbitration pursuant to the currently effective arbitration rules of CIETAC at the time of 

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Equity Pledge Agreement

application.  This arbitration shall be final and bind both parties and shall be enforceable in any court of competent jurisdiction.  The arbitration fees shall be born by the losing party.

14.3

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.

 

15.

Effect, Change and Recession of this Agreement

15.1

This Agreement shall come into effect on and after the date that it is signed and/or stamped by both parties.

15.2

After this Agreement comes into effect, except otherwise provided by this Agreement, neither party shall amend or terminate this Agreement in advance.  If it is necessary to amend or terminate this Agreement, both parties shall negotiate to reach a written agreement.  Before such written agreement is reached, this Agreement shall remain in effect.

16.

Physical Possession Of Documents

 

16.1

Party A shall deliverthe physical possession of the certificates of registration (original) of the pledge to Party B, provide the proper record relating tothe registration of such pledge to Party B, and transact various approval and examination, registration and filling procedures required by the laws of the PRC within thirty (30) business days as of the date of execution of this Agreement or an earlier time agreed upon by the parties.

16.2

If the subjects of the pledge change and such changes need to be registered or filed, Party A shall register or file or cause UKT Companyto register or file such changes 

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within five (5) business days as of the day of change, and shall deliver relevant registration of change or filling documents to Party B.

16.3

During the term of the equity pledge, Party A shall instructUKT Company not to distribute any dividends, or adopt any profits distribution plans; if Party A shall be entitled to collect any interests other than distribution plansof dividends and profits, Party A shall instruct UKT Company to transform such interests into cash and pay such interests into the bank account designated by Party B in accordance with Party B’s requirements, and Party A shall not use any money deposited into the bank account without the prior written consent of Party B.

16.4

During the term of equity pledge, if Party A subscribes new capital contribution or accepts an equity transfer (“Newly-added Equities”), the Newly-added Equities shall be automatically become Pledged Equities under this Agreement, and Party Ashall accomplish all the procedures with respect to the pledge of the Newly-added Equities within ten (10) business days after acquiring the Newly-added Equities.  If Party A fails to accomplish the relevant procedures as specified in this Section 16, Party B shall have the right to exercise the pledge right under this Agreement.

 

17.

General Terms

17.1

Entire Agreement.  This Agreement and the Exhibits and Schedules hereto contain the entire understanding between the parties, no other representations, warranties or covenants having induced any party to execute this Agreement, and supersede all prior or contemporaneous agreements with respect to the subject matter hereof.  All references to schedules and exhibits are to exhibits and schedules attached to and to become a part of this Agreement unless otherwise indicated.

 

17.2

Amendment.  Any amendment and/or rescission shall be in writing and signed by the authorized representatives of both parties.  Such revision shall be a valid integral part of this Agreement.

 

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17.3

Headings.  The headings of any Sections or other portion of this Agreement are for convenience only and are not to be considered in construing this Agreement.

17.4

Construction.  References in this Agreement to "Sections," "Schedules" and "Exhibits" shall be to the Sections, Schedules and Exhibits of this Agreement, unless otherwise specifically provided; any use in this Agreement of the singular or plural, or the masculine, feminine or neuter gender, shall be deemed to include the others, unless the context otherwise requires; the words "herein”, "hereof" and "hereunder" and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; the word "including" when used in this Agreement shall mean “including without limitation”; and except as otherwise specified in this Agreement, all references in this Agreement (i) to any agreement, document, certificate or other written instrument shall be a reference to such agreement, document, certificate or instrument, in each case together with all exhibits, schedules, attachments and appendices thereto, and as amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof; and (ii) to any law, statute or regulation shall be deemed references to such law, statute or regulation as the same may be supplemented, amended, consolidated, superseded or modified from time to time.

 

17.5

Severability.  Any provision hereof that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability, without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.6

Waiver.  No failure or delay of either party to enforce any right hereunder shall constitute a waiver of any such right hereunder.  No waiver shall be effective hereunder unless in writing and a waiver shall only be effective for the specific act or circumstance for which it is given and not for any future act or circumstance.

 

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Equity Pledge Agreement

17.7

Language.  This Agreement is in both Chinese and English and signed by both parties, and the two versions have the same effect.  Should there be any discrepancy between the two language versions, the Chinese version shall prevail.

 

17.8

Copies of this Agreement.  This Agreement shall be executed in four counterparts; each party holds one and the rest are used for the transaction of related formalities.  Each of the copies shall be deemed as the original one and has the same effect.

 

[The remainder of this page is intentionally left blank.]

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In witness hereof, both parties have signed this Agreement on the date specified on the first page of this Agreement by their respective authorized representatives.

Party A:  Yahong Zhao (signature):

Party B:HuashangWujie (Beijing) Internet Technology Co., Ltd.(seal)

Legal Representative (signature):

 

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Equity Pledge Agreement

 

Equity Pledge Agreement

 

This Equity Pledge Agreement (this “Agreement”) is entered into by and between the following two parties below on February 5, 2015, in Beijing, the People’s Republic of China (“P.R.C.”):

 

Party A:  Yinghua Zhang, a citizen of the P.R.C. with Chinese identification No.: 131082197509220775, with the address at Room 6, Line 4, Department  No. 3, Meijian Company, Quanshan District, Xuzhou City, Jiangsu Province, P.R.C.; and

Party B:HuashangWujie (Beijing) Internet Technology Co., Ltd., a wholly foreign-owned enterprise which has been duly organized and is validly existing under the laws of the P.R.C., with its address at Room 255, Building 2#, No. 15, Wanyuan Street, Beijing Economic-Technological Development Area, Beijing, P.R.C.

In this Agreement, Party A, Party B shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas:

 

1.

On the date of execution of this Agreement, Party A is one of the shareholders of Beijing UKT Investment Management Co., Ltd.(“UKT Company”) and duly holds 7% of the shares of UKT Company;

2.

UKT Company is a corporation incorporated and validly existing in the territory of the PRC pursuant to the law of the PRC with business license registration number:110105014211546 and its address atFloor No. 23, Building A, Caizhi International Mansion, No. 18, Zhongguancun East Road, Haidian District, Beijing, P.R.C.

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3.

In order to ensure all the shareholders of UKT Companyand/or UKT Company to perform all obligations under the Management Entrustment Agreement, Power of Attorney and Exclusive Purchase Option Agreement (collectively referred to as “Onshore Agreements”) entered into on the same day as this Agreement, Party A agrees to pledge all the shares held by Party A in UKT Company to Party B as the guarantee for the performance of the Onshore Agreements by the related responsible parties pursuant to the terms and conditions of this Agreement, and Party B agrees to accept such pledge provided by Party A.

 

NOW, THEREFORE, under the principle of equality and mutual benefit and with the consensus reached through negotiation, both parties have entered into this Agreement and agreed to abide by it pursuant to the applicable laws, regulations and rules of the PRC(“laws of the PRC”).

 

1.

Pledge of Equity

1.1

In order to guarantee UKT Company,all the shareholders of UKT Company(“Shareholders” )and other related responsible parties to perform all obligations and liabilities under the Onshore Agreements, Party A agrees to pledge the Pledged Equities (as defined in Section 4 herein) under this Agreement to Party B pursuant to the terms and conditions of this Agreement, and Party B agrees to accept the above equity pledge, and have priority right to the proceeds from the conversion, auction, or sale of the Pledged Equities.

1.2

The pledge under this Agreement includes the rights owned by Party B to collect the fees (including legal fees), expenses, interests, losses, liquidated damages and compensations thatUKT Companyand/or the Shareholders shall pay under the Onshore Agreements, and civil liabilities that UKT Companyand/or the Shareholders shall bear in case the Onshore Agreements wholly or partially become null and void due to any reason.

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1.3

Unless consent in writing by Party B, after the execution of this Agreement, the pledge under this Agreement willbe terminated only when UKT Company and the Shareholders have performed all the obligations and liabilities under the Onshore Agreements and Party B confirms such fulfillmentin writing.If UKT Company or the Shareholders have not fully performed all or part of its or their obligations or liabilities under the Onshore Agreements at the expiration of such agreements, Party B will maintain the pledge hereunder up to the date when all such obligations and liabilities are fully performed.

 

2.

Representations and Warranties

 

2.1

Party A represents and warrants to Party B, on the day of execution of this Agreement:

2.1.1.

Party A has the right to execute this Agreement and the capability to perform the same;

2.1.2.

Party A has gone through necessary internal decision-making procedures, obtained proper authority, acquire all the necessary consents and approvals of any requisite third party and government authority to enter into and perform this Agreement and this Agreement does not violate the laws of the PRC and contracts binding or affecting it;

2.1.3.

upon the execution, this Agreement will constitute the legal, valid, binding obligation of both parties and both parties will be subject to compulsory enforcement pursuant to the terms and conditions of this Agreement;

2.1.4.

Party A is the exclusive and duly owner of the Pledged Equities, has paid up all capitals subscribed, has obtained the capital verification report issued by the duly qualified Certified Public Accounting firm and has the right to set the pledge of the first priority on such Pledged Equities for Party B;

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Equity Pledge Agreement

2.1.5.

except for the pledge under this Agreement, there is not: (i) any other encumbrance or any security interests for the benefit of any third party on the equity interests pledged by Party A (including but not limited to pledge); (ii) any mortgages or other guarantee rights set for any third party; (iii) any pending or possible civil, administrative or criminal litigation or administrative punishment or arbitration relating to the equity interests hereunder on the date of execution of this Agreement; (iv) any trusts or conditions of limited use; (v) any exemptions from lawsuit, execution, enforcement or other legal proceedings; or (vi) any outstanding taxes, fees or undecided legal procedures related with the equity interests hereunder on the date of execution of this Agreement;

2.1.6.

Party A has not effected and will not effect an Event of Default (as defined in Section8) and has no knowledge of any risk of an Event of Default under this Agreement or any other agreement to which Party A are a party;

2.1.7.

Party A has abided by and performed all obligations stipulated by the applicable laws, regulations and rules and all applicable authorizations and permissions; Party A does not have any circumstances that go against any laws, regulations or rules and may have material and adverse effect on the validity, effect, performance and enforceability of this Agreement; and

2.1.8.

to the best knowledge of Party A, no court, arbitral tribunal or government authority starts to take any legal proceedings or administrative proceedings against Party A or the Pledged Equities, neither does any courts, arbitral tribunals or government authority start to file any legal proceedings or administrative proceedings against Party A or the Pledged Equities, and Party A has no knowledge of any such risks.

2.2

Party B presents and warranties to Party A on the day of execution of this Agreement:

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Equity Pledge Agreement

2.2.1.

it has the right, to execute this Agreement and the capability to perform the same;

2.2.2.

it has carried out necessary internal decision-making procedures, obtained proper authority, acquire the necessary consents and approvals of any third party and government authority to enter into and perform this Agreement and it does not go against the laws and contracts binding or affecting it; and

2.2.3.

upon the execution, this Agreement will constitute the legal, valid, binding obligation of both parties and both parties shall be subject to compulsory enforcement pursuant to the terms and conditions of this Agreement.

3.

Guaranteed Liabilities

 

The liabilities guaranteed under this Agreement are the obligations and liabilities of UKT Company,the Shareholders, and all related responsible parties incurred under the Onshore Agreements (including the extended agreements to these agreements and the revised and supplementary agreements to such agreements), including but not limited to the Entrustment fees, interest, liquidated damages, indemnities, fees for realization of the creditor’s right arising out of and in relation to the Onshore Agreements and payable by the UKT Companyand/or the Shareholders to Party B, and the damages and other fees that are payable by UKT Companyand/or the Shareholders to Party B due to the default.

4.

Pledged Equities

 

The Pledged Equities are 7% of the shares of UKT Company which Party A duly and legally holds and all rights and proceeds of or in relation to such equities.

 

5.

Pledge Procedures and Transaction

 

Within thirty (30) days of the execution of this Agreement, Party A shall transact the registration procedures in relation to this pledge of equity at Tongzhou Office of Beijing 

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Equity Pledge Agreement

Administration of Industry and Commerce.  If the registration for such pledge of equity fails due to the reason of Tongzhou Office of Beijing Administration of Industry and Commerce, Party A shall demand UKT Companyto write down the matter about such pledge of equity into the stock ledger of UKT Companyand apply to Tongzhou Office of Beijing Administration of Industry and Commerce for the transaction of the registration of the pledge of equity within thirty (30) days as of the day when Tongzhou Office of Beijing Administration of Industry and Commerce approves suchregistration or the information about the approval for such registration is obtained.

 

6.

Party A’s Undertaking

 

Within the term of this Agreement, Party A undertakes to Party B that:

 

6.1

without the prior written consent of Party B, Party A shall not impose any other encumbrance (whether prevailing over the pledge under this Agreement or not) or other restrictive conditions on all or part of the Pledged Equities;

6.2

without the prior written consent of Party B, Party A shall not sell, lease, lend, transfer, assign, grant, remortgage, trust, or participate in equity investment by, the Pledged Equities or dispose by any other means all or part of the Pledged Equities;

6.3

Party A shall not use or allow others to use the Pledged Equities for any actions or events against any laws or this Agreement;

6.4

after receiving any notice, order, ruling, verdict or other instruments in relation to the Pledged Equities from the government, judicial authority or arbitral organization,Party Ashall immediately notify Party B and within the period provided by the applicable laws take all necessary steps to reduce the risks that such notice, order or other instruments may bring to the Pledged Equities.  Where Party B deems necessary, Party A shall file a lawsuit, arbitration or administrative lawsuit against the above notice, order or other instruments and bear all fees that arising therefrom and in relation thereto;

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Equity Pledge Agreement

6.5

Party A shall immediately notify Party B of any events or any received notices which may affect the equity interest of Party Aor any part of its right, and any events or any received notices which may change the covenants and obligations of Party A under this Agreement or which may affect theperformance of its obligations under this Agreement, and take actions in accordance with the instructions of Party B;

6.6

Party A agrees that the right of Party B to exercise the pledge pursuant to this Agreement shall not be suspended or hampered by Party A or any successors or transferees of Party A or any other persons;

6.7

Party A warrants to Party B that in order to protect and perfect the security over the obligations of Party A and/or UKT Company under the Onshore Agreements, Party A shall make any necessary amendment (if applicable), execute in good faith and cause any thirdparty who has interests in the pledge to execute all the title certificates, contracts, and /or perform and cause any third party who has interests to take action as required by Party B and make access to exercise the rights and authorization vested in Party B under this Agreement, and execute all the documents with respect to the changes of equity interests owned by Party B or another party designated by Party B, and provides Party B with all the necessary documents within the reasonable time; and

6.8

Party A warrants to Party B that Party A will comply with and perform all the guarantees, covenants, agreements, representations and conditions for the benefits of Party B.  Party A shall indemnity Party B for all the damages suffered by Party B for the reasons that Party A does not perform or fully perform such guarantees, covenants, agreements, representations and conditions.

7.

Exercise of Pledge

 

7.1

Subject to Clause 8.3, Party B may dispose the Pledged Equities at any time upon or after sending the notice for the exercise of the pledge.

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7.2

Party B shall have the priority right to dispose all or part of Pledged Equities under this Agreement (including but not limited to purchase of shares at discounted price by agreement, sell at auction by the laws of the PRC, sell-off Pledged Equities) as per legal procedures and to be paid with the sum gained from the disposal until all guaranteed liabilities of UKT Company and the Shareholders under the Onshore Agreements are fulfilled completely.

7.3

Where Party B disposes the Pledged Equities pursuant to this Agreement, Party A shall provide and cause UKT Companyto provide necessary assistance so that Party B can realize its pledge.

8.

Event of Default

 

8.1

The following events shall be regarded as an Event of Default:

8.1.1.

where Party A and/or UKT Company and related responsible parties fail to perform any obligations under the Onshore Agreements in time or fails to discharge any guaranteed liability as scheduled in full sum;

8.1.2.

where there are any falsity, fraud, misleading statements or errors relating toany representation and undertaking Party A makes in Section 2 herein;

8.1.3.

where Party A violates any undertaking in Section 6 of this Agreement;

8.1.4.

where Party A violates any other terms and conditions of this Agreement; 

8.1.5.

where Party Arefuses or intentionally delays the registration procedures for the pledge under this Agreement and fails to correct such action within ten (10) days as of the day when Party B requires in writing to do so;

8.1.6.

where any loan, guarantee, indemnity, undertaking or other compensation liability of Party A: (i) is required to be repaid or performed in advance due to 

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Equity Pledge Agreement

an event of default; or (ii) is due but unable to be repaid or performed as scheduled, which makes Party B reasonably believe that the ability of Party A to perform its obligations under this Agreement has been materially and adversely affected;

8.1.7.

where this Agreement becomes ineffective, revocable, unenforceable or Party A cannot continue performing its obligations under this Agreement in time and fully due to the fault (including omission) of Party A after the issuance of new laws of the PRC;

8.1.8.

Party A waive the pledged equity interests or transfers the pledged equity interests without prior written consent from the Party B;

8.1.9.

any approval, permits, licenses or authorization from the competent authority of the government needed to perform under this Agreement or validate this Agreement are withdrawn, suspended, invalidated or materially amended;

8.1.10.

the property of Party A is adversely changed and causes Party B to deem that the capability of Party A to perform the obligations herein is affected; and

8.1.11.

other circumstances in which Party B cannot exercise and dispose the pledge due to the fault (including omission) of Party A.

8.2

If Party A knows or should have known the occurrence of any event stated above in Subsection 8.1 or any matter that may incur the above events, Party A shall immediately notify Party B in writing.

8.3

Unless Party A immediately takes the measures satisfactory to Party B to correct the Event of Default listed in Subsection8.1 above, Party B may send written notice of exercising the pledge to Party A at any time upon or after the occurrence of Event of Default, demand Party Aand/or UKT Companyto: (i) make full payment of the outstanding fees pursuant to the Onshore Agreement, and (ii) immediate perform their 

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obligations under the Onshore Agreements,and require disposal of the Pledged Equities pursuant to this Agreement.

8.4

The Event of Default provided in this Section 8 will not affect the exercise of other remedies by the parties pursuant to the laws of the PRC.

9.

Liability in the Event of Default

 

Both parties shall sufficiently perform their obligations under this Agreement.  Either party breaching this Agreement shall bear the liability as arising therefrom and in relation thereto.  If such breach causes damages to the other party, the breaching party shall indemnify the other party for all such damages.

10.

Assignment

10.1

 Without the prior written consent of Party B, Party A shall not have the right to assign or delegate its rights and obligations under this Agreement.

10.2

This Agreement shall be binding on Party A and its successors and permitted assigns, and shall be valid with respect to Party B and each of its successors and assigns.

10.3

At any time, Party B may assign any and all of its rights and obligations under the Onshore Agreements to its designee(s) (natural or legal persons), in which case the assigns shall have the rights and obligations of Party B under this Agreement, as if it were the original party to this Agreement. When Party B assigns the rights and obligations under the Onshore Agreements, at the request of Party B,Party A shall execute relevant agreements or other documents relating to such assignment.

10.4

In the event of a change in the pledgee due to an assignment, Party A shall, at the request of Party B, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement, and register for change of the pledgee with the competent Administration of Industry and Commerce.

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11.

Termination

 

Upon the date that all guaranteed liabilities of UKT Company and Party Aunder the Onshore Agreements are fulfilled completely, this Agreement shall be terminated.  In such case, Party B shall cancel the pledge registration under this Agreement as soon as possible within the reasonable and feasible period.

 

12.

Taxes, Fees and Other Expenses

 

All taxes, fees and other expenses arising from the execution and performance of 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 B.

 

13.

Confidentiality

 

13.1

Both parties agree that, all materials, documents, communications and other information obtained in the negotiation, execution or performance of this Agreement, whether commercial, technical or in any other form (“Confidential information"), shall be strictly kept confidential and used only for the performance of the obligations under this Agreement.  Unless the other parties consent in writing, neither of the parties shall release, leak or disclose any Confidential Information to any third party.

 

13.2

Either party may disclose the Confidential Information in the following circumstances: (i) where the laws, court orders or the competent courts with jurisdiction require, and such disclosure may be conducted only within such requirement; (ii) where the competent authority or government department requires; (iii) where such Confidential Information has been known to the general public; (iv) where such Confidential Information was owned duly and legally by the disclosing party rather obtained from the other party before the disclosing party obtains it; (v) the information is required to be disclosed subject to the applicable laws or the rules or provisions of a stock exchange or securities governing authority; and (vi) the information is disclosed 

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by each party to its legal or financial consultant relating the transaction of this Agreement, and this legal or financial consultant shall comply with the confidentiality set forth in this Section 13.However, for the circumstances aforesaid, where either party discloses the Confidential Information, it shall inform the other party of the Confidential Information to be disclosed.

 

13.3

Nonetheless other provisions of this Section 13, either party shall have the right to disclose the Confidential Information to its lawyer, accountant, other professional consultants, directors or senior officers; such personnel shall undertake in writing to treat such information as Confidential Information by taking the measures similar to those provided in 13.1 of this Section.

 

13.4

The disclosure of the Confidential Information by staff or employed institution of any party shall be deemed as the disclosure of such Confidential Information by such party, and such party shall bear the liabilities for breaching the agreement.

 

13.5

This Section13 shall survive whatever this Agreement is invalid, amended, revoked, terminated or unable to implement by any reason.

14.

Governing Law and Dispute Resolution

14.1

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 the PRC. Matters not covered by formally published and publicly available laws of the PRC shall be governed by international legal principles and practices.

 

14.2

Both parties agree that any dispute arising from or in relation to this Agreement shall first be settled by the friendly negotiation of both parties.  If the negotiation fails within 45 days, either party shall have the right to file the dispute with China International Economic and Trade Arbitration Commission (“CIETAC”) in Beijing for arbitration pursuant to the currently effective arbitration rules of CIETAC at the time of 

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application.  This arbitration shall be final and bind both parties and shall be enforceable in any court of competent jurisdiction.  The arbitration fees shall be born by the losing party.

14.3

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.

 

15.

Effect, Change and Recession of this Agreement

15.1

This Agreement shall come into effect on and after the date that it is signed and/or stamped by both parties.

15.2

After this Agreement comes into effect, except otherwise provided by this Agreement, neither party shall amend or terminate this Agreement in advance.  If it is necessary to amend or terminate this Agreement, both parties shall negotiate to reach a written agreement.  Before such written agreement is reached, this Agreement shall remain in effect.

16.

Physical Possession Of Documents

 

16.1

Party A shall deliverthe physical possession of the certificates of registration (original) of the pledge to Party B, provide the proper record relating tothe registration of such pledge to Party B, and transact various approval and examination, registration and filling procedures required by the laws of the PRC within thirty (30) business days as of the date of execution of this Agreement or an earlier time agreed upon by the parties.

16.2

If the subjects of the pledge change and such changes need to be registered or filed, Party A shall register or file or cause UKT Companyto register or file such changes 

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within five (5) business days as of the day of change, and shall deliver relevant registration of change or filling documents to Party B.

16.3

During the term of the equity pledge, Party A shall instructUKT Company not to distribute any dividends, or adopt any profits distribution plans; if Party A shall be entitled to collect any interests other than distribution plansof dividends and profits, Party A shall instruct UKT Company to transform such interests into cash and pay such interests into the bank account designated by Party B in accordance with Party B’s requirements, and Party A shall not use any money deposited into the bank account without the prior written consent of Party B.

16.4

During the term of equity pledge, if Party A subscribes new capital contribution or accepts an equity transfer (“Newly-added Equities”), the Newly-added Equities shall be automatically become Pledged Equities under this Agreement, and Party Ashall accomplish all the procedures with respect to the pledge of the Newly-added Equities within ten (10) business days after acquiring the Newly-added Equities.  If Party A fails to accomplish the relevant procedures as specified in this Section 16, Party B shall have the right to exercise the pledge right under this Agreement.

 

17.

General Terms

17.1

Entire Agreement.  This Agreement and the Exhibits and Schedules hereto contain the entire understanding between the parties, no other representations, warranties or covenants having induced any party to execute this Agreement, and supersede all prior or contemporaneous agreements with respect to the subject matter hereof.  All references to schedules and exhibits are to exhibits and schedules attached to and to become a part of this Agreement unless otherwise indicated.

 

17.2

Amendment.  Any amendment and/or rescission shall be in writing and signed by the authorized representatives of both parties.  Such revision shall be a valid integral part of this Agreement.

 

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17.3

Headings.  The headings of any Sections or other portion of this Agreement are for convenience only and are not to be considered in construing this Agreement.

17.4

Construction.  References in this Agreement to "Sections," "Schedules" and "Exhibits" shall be to the Sections, Schedules and Exhibits of this Agreement, unless otherwise specifically provided; any use in this Agreement of the singular or plural, or the masculine, feminine or neuter gender, shall be deemed to include the others, unless the context otherwise requires; the words "herein”, "hereof" and "hereunder" and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; the word "including" when used in this Agreement shall mean “including without limitation”; and except as otherwise specified in this Agreement, all references in this Agreement (i) to any agreement, document, certificate or other written instrument shall be a reference to such agreement, document, certificate or instrument, in each case together with all exhibits, schedules, attachments and appendices thereto, and as amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof; and (ii) to any law, statute or regulation shall be deemed references to such law, statute or regulation as the same may be supplemented, amended, consolidated, superseded or modified from time to time.

 

17.5

Severability.  Any provision hereof that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability, without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.6

Waiver.  No failure or delay of either party to enforce any right hereunder shall constitute a waiver of any such right hereunder.  No waiver shall be effective hereunder unless in writing and a waiver shall only be effective for the specific act or circumstance for which it is given and not for any future act or circumstance.

 

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17.7

Language.  This Agreement is in both Chinese and English and signed by both parties, and the two versions have the same effect.  Should there be any discrepancy between the two language versions, the Chinese version shall prevail.

 

17.8

Copies of this Agreement.  This Agreement shall be executed in four counterparts; each party holds one and the rest are used for the transaction of related formalities.  Each of the copies shall be deemed as the original one and has the same effect.

 

[The remainder of this page is intentionally left blank.]

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In witness hereof, both parties have signed this Agreement on the date specified on the first page of this Agreement by their respective authorized representatives.

Party A:  Yinghua Zhang (signature):

Party B:HuashangWujie (Beijing) Internet Technology Co., Ltd.(seal)

Legal Representative (signature):

 

Page 17 / 17Management Entrustment Agreement

  
 EXHIBIT 10.12
  
 Management Entrustment Agreement
 

 Management Entrustment Agreement
 This Agreement is made and entered into on February 5, 2015 in Beijing,China, by and between the following parties:
 Party A:Qianxian Media Advertising (Beijing) Co., Ltd.
 Business address: Floor No. 23, Building B, Caizhi International Mansion, No. 18, Zhongguancun East Road, Haidian District, Beijing, P.R.C.
 Party B:HuashangWujie (Beijing) Internet Technology Co., Ltd.
 Business address: Room 255, Building 2#, No. 15, Wanyuan Street, Beijing Economic-Technological Development Area, Beijing, P.R.C.
 WHEREAS:
 1. Party A is acorporation registered with Tongzhou office of BeijingAdministration for Industry & Commerce and validly existing in the territory of the PRC pursuant to the laws ofthe PRC with business license registration number: 110106002093970.
 2. Party B is a whollyforeign-owned enterprise which has been duly organized and registered with Beijing Administration for Industry & Commerce and validly existing under the laws of thePRC, with business license registration number: 110000450264334.
 3. In order to let Party B have actual control of Party A, Party A intends to irrevocably entrust to Party B for its management the right of operation management of Party A and the responsibilities and authorities of the shareholders and the Executive Director of Party A.
 4. Party B agrees to accept the entrustment of Party A, and to exercise the right of operation management of Party A and the responsibilities and authorities of the shareholders and the Executive Director of Party A.
 5. Party A has obtained the approval of its shareholders to enter into this Agreement.
 

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 NOW, THEREFORE, through friendly consultation, under the principle of equality and mutual benefits, in accordance with the relevant laws and regulations of the People’s Republic of China, the parties agree to enter into this Agreement and to be bound with the terms and conditions as follows:
 Article 1  Management Entrustment
 1.1 Entrusted Operation
 Party A agrees to irrevocably entrust the right of operation management of Party A and the responsibilities and authorities of Party A’s shareholders and the Executive Director to Party B in accordance with the terms and conditions of this Agreement.  Party B agrees to exercise the aforesaid rights and responsibilities in accordance with the terms and conditions of this Agreement.All the shareholders of Party Aissued Power of Attorney (“Power of Attorney”)to Party Bby on the same dayas this Agreement.  Except that this Agreement terminates, the aforesaid entrustment shall be irrevocable.
 1.2 Term of Entrusted Operation
 1.2.1
 This Agreement is executed on the date first above written and shall take effect as of such date (such day, the “Effective Date”), and subject to the termination provisions of Sections 1.2.2. and 1.2.3 below (collectively, the “Early Termination Provisions”), shall continue in effect until the thirtieth anniversary of the Effective Date (the “Initial Term”); provided, that if this Agreement has not been terminated prior to the end of the Initial Term or a Renewal Term (as the case may be) in accordance with the Early Termination Provisions, the term of this Agreement automatically and without any action of any party shall be extended for additional successive ten year periods thereafter (each a “Renewal Term”), unless not less than 30 days prior to the end of the Initial Term or any Renewal Term Party B notifies Party A in writing that this Agreement shall terminate at the end of the Initial 
 

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 Term or that Renewal Term, as the case may be.  In no event shall Party A have the right to unilaterally terminate this Agreement.  Anything to the contrary in the foregoing notwithstanding, upon the occurrence of the events set forth below this Agreement shall terminate on the date specified:
 1.2.2
 the day whenthe Agreement is terminated by Party B in its sole and absolute discretion by the delivery to Party A of a written notice of termination; or
 1.2.3
 the day when Party B completes the acquisition of all the assets or at least 51% of the equity interests of Party A.
 1.3 Purpose of Entrusted Operation
 Party Bshall fully manage the operation activities of Party A as its exclusivemanaging consultant and provide Party A with exclusive technical support for Party A.Party B shall perform the responsibilities and rights of Party A’s shareholders and the Executive Director. Party A shall pay its profit (if any) to Party B according to Article 1.5 of this Agreement and Party B shall be responsible to Party A’s loss (if any).  During the term of the entrusted operation, Party B, as the entrusted manager, shall provide full management to Party A’s operations.
 1.4 Content of Entrusted Operation
 As of the day when this Agreement comes into effect, Party B shall be in charge of all aspects of party A’s operations. The contents of the entrusted operation shall include but not limited tomajor decision right management, capital management, financial management,assets management, human resource management, daily operation management and technical support. For Party B’s operation decision for the operation management of Party A,Party A shall unconditionally provide necessary assistance.
 1.4.1   Major Decision Right Management
 

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 (1) Pursuant to Power of Attorney issued by the shareholders of Party A on the same dayas this Agreement (“Power of Attorney”), Party B shall have the right to participate inthe shareholder’s meeting of Party A, vote on the matters proposed at the meeting,suggest the holding of temporary shareholders’ meeting as the agent of theshareholders of Party A, and have other shareholders’ voting rights as stipulated inthe Articles of Association of Party A and the Companies Law of the PRC.Party B shall also have the right to make the following major decisions:
 a) to decide the operation plan and investment scheme for Party A;
 b) to discuss and approve the reports of the Executive Director and the supervisor;
 c) to discuss  and approve the annual financial budget and settlement plan;
 d) to discuss approve the profit distribution plan and the loss compensation plan;
 e) within the authorization of the shareholder’s meeting, to decide suchmatters of Party A as investment, assets purchase or sale, assetsmortgage, external guarantee, assets management and related partytransaction;
 f) to resolve on the increase or decrease of the registered capital;
 g) to resolve on the issuance of the corporate bond;
 h) to resolve on the matters including merger, division, change of corporate form, dissolution and liquidation of the company;
 i) to amend the articles of association;
 

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 j) to retain or replace the Certified Public Accounting (“CPA”) firm providingauditing service for Party A.
 (2) Party B shall have the right to designate candidatesof theexecutive director and supervisorof Party A.
 (3) Party B shall have the right to prepare the scheme to purchase or repurchase theshares of Party A, the scheme of reorganization and the scheme to gopublic for Party A; Party A should make sure that the shareholders of Party A shallagree such schemes and go through the necessary legal procedures to complete saidschemes.
 1.4.2   Capital Management
 Party B shall manage and control all funds of Party A. Party A shall open or appoint amanagement account for its funds (“Management Account”) and Party B shall beresponsible for and have the right in deciding the inward and outward remittance of itsfunds. The seals affixed to such account shall be that of the person appointed and confirmedby Party B. As of the day when this Agreement comes into effect, all cashes of Party A,including but not limited to revenues from sales, existing working capitals, collecting of receivables, and all payables and operatingexpenses, employees’ salaries and compensationsand assets acquisition, must be saved and transacted in this Management Account.
 1.4.3   Financial Management
 (1) Party B shall establish the financial and accounting system of Party A pursuant to theapplicable laws of the PRC.
 (2) Party B shall submit annual budget and settlement scheme to the shareholders ofParty A.
 (3) Party B shall on a quarterly basis file financial statements to the shareholders of PartyA, and prepare the annual financial statements of Party A within one hundred andtwenty (120) days after the end of each 
 

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 fiscal year, and provide them to theshareholders after they are audited by the CAP firm.
 1.4.4   Assets Management
 (1) Party A shall deliver the list of all its assets on December31, 2014(“Base Date”)to Party B, within 10 businessdays after the effective date of this Agreement and undertake it has no action adversely affecting such assets after the BaseDate and before the execution of this Agreement.  Party B has the right to use such assets for the necessary operation scope.
 (2) Within the term of the entrusted operation, Party A shall not transfer the assets ofParty A or reduce their value, unless otherwise arising in the ordinary course ofbusiness of Party A and obtaining approval from Party B.
 1.4.5   Human Resource Management (“HR Management”)
 (1) Party B have the right to decide the setup of the internal governance structure of Party A;
 (2) Party B shall have the right to decide all matters in relation to HR of Party A,including but not limited to the employment, removal, staffing and remuneration ofsenior officers.
 (3) Within the term of the entrusted operation, Party B shall continue to perform thelabor contracts signed by Party A and its employees according to the PRC labor laws.
 1.4.6   Daily Operation Managementand Technical Support
 (1) Party B shall have the right to decide all daily production and sales arrangements ofParty A such as the business model, marketing tragedy and executionof operating contracts.
 (2) Party B undertakes to make full use of its existing advanced methods of 
 

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 management and technologies, to broadensales channels, enhance the market share, reduce business cost and operating expenses.
 1.5 Entrustment Fee
 1.5.1
 In consideration of the services to be provided by Party B, Party A shall pay to Party B eachquarter a management consulting fee equal to all after-tax profits, if any, of Party A for that quarter.
 

 1.5.2 
 Such fees that Party A shall pay (or cause to be paid) to Party B are to be paid in the following manner: during the term of this Agreement: the Profits for each quarter shall be computed no later than 45 days after the end of each quarter, except that in the case of the final quarter of a fiscal year the period for calculating the Profits shall be 90 days.  Once such computation is completed, but in all events within 45 days of the end of each fiscal quarter (90 days in the case of the fourth quarter), 100% of all Profits for that quarter shall be paid to Party B.  If the Profits for any quarter are zero or negative, meaning that Party A had a loss for such quarter, Party A will not pay Party B a management consulting fee for that quarter, and any loss for a quarter shall be deducted from the management consulting fee for the following quarters; provided further, if at any time Party A shall request that Party B pay to it the amount of any loss that has not been offset against a Profit, Party B will do so within thirty days of such request. 
 

 1.5.3  
 Should Party A fail to pay all or any part of the fees due to Party B under this Agreementwithin the time stipulated, Party A shall pay to Party B interest on the amount overdue based at an adjustable rate equal to the three (3) month lending rate for RMB announced from time to time by the People’s Bank of China from the date due until the date paid in full.  
 

 

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 1.5.4 
 Following the end of each fiscal year of Party A, the parties shall conduct an  examination and verification of the management consulting fees paid by Party A based upon the Profits of Party A for each of the quarters during such fiscal year as confirmed by the audit report by the CPA firm retained by Party B and make appropriate adjustments within fifteen (15) business days following the issuance of such audit report, so that any overcharge will be refunded or any deficiency will be compensated for. Party Acovenants and warrants to Party B that it will provide all necessary materials and assistance to such CPA firm and cause the preparation and issuance to the parties of the foregoing audit report by such CPA firm within ninety (90) days following the end of each fiscal year of Party A.
 1.6 Assumption of the Entrustment Risk
 Party B shall assume all the operation risks in association with the management of Party A entrusted to it.  Party B shall be responsible for any loss incurred to Party A’s operation.  If Party A’s cash is not enough to pay its debt, Party B is liable to pay the debt; if the loss leads to Party A’s net asset less than the total contribution of Party A’s all shareholders (i.e. paid-in capital), Party B shall be liable to make up for the deficiency.
 Article 2  Rights and Obligations of the Parties A
 During the term of the entrusted operation, the rights and obligations of Party A shall include:
 (1) After the execution of this Agreement, the management of Party A shall be handed over to Party B. Party Ashall, within 10business days after the effective date of this Agreement, deliver Party A’s business data, personal archives, business licenses, seals, financial records, legal title certificates and other relevant documentation to Party B or representative authorized by Party B, in order to guarantee Party B to execute its operation responsibilities.  
 

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 (2) During the term of the entrusted operation, without Party B’s consent, Party A and its shareholdersand theExecutive Director shall not make any decision on Party A’s operations, and they shall not intervene with Party B’s entrusted management activities in any form;
 (3) During the term of the entrusted operation, Party A’s Executive Director shall have  the obligation to cooperate with Party B in accordance with Party B’s request to ensure the stability and consistency of the operation;
 (4) To entrust the authorities of the shareholders and the Executive Director to Party B;
 (5) To timely pay the entrustment fee to Party B;
 (6) Without Party B’s consent, Party A shall not entrust any third party other than Party B in any form to manage Party A’s businesses;
 (7) The Executive Director and shareholders of Party A shall issue necessary documents for the purpose of accomplishing the management by Party B;
 (8) Party A shall do or cause to be done, all things necessary to preserve and keep in fullforce and effect its existence and its material rights, franchises and licenses;
 (9) Party A shall actively assist Party B in transacting foreign merger formalitiesprovided that doing so is permitted by the laws of the PRC;
 (10) Party A shall not unilaterally early terminate this Agreement for any reason.
 (11) Other rights and obligations of Party A provided under this Agreement.   
 

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 Article 3  Negative Covenants
 Party A covenants and agrees that, during the term of this Agreement, without the priorwritten consent of Party B:
 (1) Party A will not issue, purchase or redeem any equity securities of Party A;
 (2) Party A will not create, incur, assume or suffer to exist any liens upon or with respectto any property or assets of Party A whether now owned or hereafter acquired,provided that the provisions of this subsection shall not prevent the creation,incurrence, assumption or existence of:
 a) liens for taxes not yet due, or liens for taxes being contested in good faithand by appropriate proceedings for which adequate reserves have been established; and
 b) liens in respect of property or assets of Party A imposed by the laws of thePRC, which were incurred in the ordinary course of business, and (i) whichdo not in the aggregate materially detract from the value of such property orassets or materially impair the use thereof in the operation of the business ofParty A or (ii) which are being contested in good faith by appropriateproceedings, which proceedings have the effect of preventing the forfeitureor sale of the property of assets subject to any such lien.
 (3) Party A will not liquidate ,dissolve or terminate its operations or enter into anytransactions of merger or consolidation, or convey, sell, lease or otherwise dispose of(or agree to do any of the foregoing at any future time) all or any part of its propertyor assets, or purchase or otherwise acquire (in one or a series of related transactions)any part of the property or assets (other than purchases or other acquisitions ofinventory, materials and equipment in the ordinary course of business) of any person,except that (i) Party A may make sales of inventory in the 
 

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 ordinary course of business;and (ii) Party A may, in the ordinary course of business, sell equipment which isuneconomic or obsolete;
 (4) Party A will not declare or pay any dividends, or return any capital, to itsshareholders or authorize or make any other distribution, payment or delivery ofproperty or cash to its shareholders as such, or redeem, retire, purchase or otherwiseacquire, directly or indirectly, for a consideration, any shares of any class of itscapital stock now or hereafter outstanding (or any options or warrants issued by PartyA with respect to its capital stock), or set aside any funds for any of the foregoingpurposes;
 (5) Party A will not contract, create, incur, assume or suffer to exist any indebtedness,except accrued expenses and current trade accounts payable incurred in the ordinarycourse of business, and obligations under trade letters of credit inclined by Party A inthe ordinary course of business, which are to be repaid in full not longer than oneyear after the date on which such indebtedness is originally incurred to finance thepurchase of goods by Party A;
 

 (6) Party A will not lend money or credit or make advances to any person, or purchase oracquire any stock, obligations or securities of, or any other interest in, or make anycapital contribution to, any other person, except that Party A may acquire and holdreceivables owing to it, if created or acquired in the ordinary course of business andpayable or dischargeable in accordance with customary trade terms;
 (7) Party A will not enter into any transactions or series of related transactions, whetheror not in the ordinary course of business, with any affiliates of Party A, other than onterms and conditions substantially as favorable to Party A as would be obtainable byParty A at the time in a comparable arm’s-length transaction with a person other thanan affiliate and with the prior written consent of Party B;
 

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 (8) Party A will not make any expenditures for fixed or capital assets (including, withoutlimitation, expenditures for maintenance and repairs which should be capitalized inaccordance with generally accepted accounting principles in the PRC or in the UnitedStates) in excess of US $500,000, without the prior written consent of Party B; and
 (9) Party A will not: (i) make any voluntary or optional payment or prepayment on orredemption or acquisition for value of (including, without limitation, by way ofdepositing with the trustee with respect thereto money or securities before due for thepurpose of paying when due) any existing indebtedness; (ii) amend or modify, orpermit the amendment or modification of, any provision of any existing indebtednessor of any agreement (including, without limitation, any purchase agreement,indenture, loan agreement or security agreement) relating to any of the foregoing; or(iii) amend, modify or change its Article of Association or Business License, or anyagreement entered into by it, with respect to its shares, or enter into any newagreement with respect to its shares.
 Article 4  Rights and Obligations of the Parties B
 During the term of the entrusted operation, the rights and obligations of Party B shall include:
 (1) Party B shall enjoy independent and comprehensive management right over Party A’s operations;
 (2) Party B shall have the right to adjust the organizational structure and the personnel placement of Party A based on the needs of the management;
 (3) Party B shall have the right to dispose of all the assets of Party A, and PartyB can dispose of any of the aforesaid assets without any prior consent of Party A;
 

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 (4) Party B shall be entitled to entrustment fees in accordance with this Agreement.
 (5) Party B shall carry out all the responsibilities and rights entrusted to it under this Agreement in good faith, and shall pay reasonable attention to the entrusted matters and notify Party A timely of relevant matters;
 (6) Party B shall act in good faith and consult with Party A in regards to the handling of matters  covered by this Agreement;
 (7) Other obligations shall be performed by Party B under this Agreement. 
 Article 5  Warranties and Representations
 5.1 Party A has stated to Party B and Party B has knowledge of the following circumstances:
 (1) Party A has the Fixed-form Print Advertising Registration Certificate (expiring on August 12, 2015) and may release Fixed-form Print Advertisements.
 (2) While Party A has not develop its own advertising business, but carrying out advertising services and entering into relating agreements, coordinatingwithBeijing Huashangjie Electronic Business Service Co., Ltd.and Beijing UKT Investment Management Co., Ltd. (“related companies”) controlled by Party A’s shareholders . Party A agrees to keep performing the obligations of the agreements ,to continue to enter into new ancillary agreements if necessary. Party B shall have the right to adjust its own business mode and its mode of cooperation with the related companies during the period of entrusted operation.
 

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 5.2 Each party shall warrant and represent to the other party, on the execution day of this Agreement, that:
 (1) Each party shall have the right to enter into this Agreement, and the ability to perform this Agreement;
 (2) In order to execute and perform this Agreement, each party has gone through the necessary internal decision-making procedures and obtained the approval;
 (3) Each party has duly authorized its representative to execute this Agreement;
 (4) Each party shall not have any reason of its own that will encumber the effectiveness of this Agreement from the effective date and become binding on such party;
 (5) The execution of this Agreement and the performance of the obligations hereunder will NOT:
 a) violate the business license, articles of association or any other similar documents of that party;
 b) violate the laws and regulations of China or the government authorization or permit;
 c) violate any other contracts or agreements to which that party is a party (or is bound), or lead to that party’s breach of contract under such contracts or agreements.
 Article 6  Effect of the Agreement
 This Agreement shall be valid upon the subscription of both parties’ legal representatives or duly authorized representatives and the affixture of both parties’ corporate seals.
 

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 Article 7  Liability of Beach of the Agreement
 After the effectiveness of this Agreement, apart from the situation described in Article 8 of this Agreement, either party’s violation of any provisions under this Agreement shall constitute a breach of this Agreement and thus be liable to compensate the non-breaching party for any damages that may arise thereof.
 Article 8  Force Majeure
 Either party’s failure to perform the obligations or part of the obligations of this Agreement due to a force majeure event shall not be deemed as a breach of the agreement; however, the non-performing party shall timely provide effective evidence of the force majeure event to the other party, and the parties shall discuss a settlement plan through consultation.
 Article 9   The Governing Law
 The execution, effectiveness, interpretation, performance and dispute resolution of this Agreement shall be governed by the laws and regulations of China.
 Article 10  Dispute Resolution
 Any dispute arising under this Agreement shall be first settled by the parties through friendly consultation.   If the negotiation fails within 45 days,either party  is entitled to submit the dispute to the China international Economic and Trade Arbitration Commission (“CIETAC”) in Beijing for arbitration which shall be conducted in accordance with the Commission's arbitration rules in effect at the time of applying for arbitration.The arbitral award is final and binding upon both parties.
 Article 11  Confidentiality 
 11.1  The parties agree and shall cause their relevant personnel to keep strict confidence of all the terms and conditions of this Agreement and all the matters of the entrusted operation that have access to. They shall not disclose the aforesaid information to any third party unless it is required by the explicit 
 

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 provision of law, or the instruction of judicial or governmental agencies or with consent of the other party, otherwise, the disclosing party shall bear the relevant legal consequences.
 11.2  The confidentiality obligation of the parties shall survive the termination ofthis Agreement.
 Article 12  Severability of the Clauses
 12.1  If any clause of this Agreement is invalidated or non-enforceable due to the provisions of laws or regulations, this clause is invalid while all other clauses shall remain in full force and effect and binding upon both parties.
 12.2  In the event the aforesaid situation occurs, the parties shall, through friendly consultation, agree upon supplemental clause to replace the invalid clause at their earliest possible time.
 Article 13  Non-waiver of Rights
 13.1  If one party fails or delays to exercise a certain right provided under this Agreement, such failure or delay shall not constitute the waiver of such right by that party.
 13.2  If one party fails to require the other party to perform a certain obligation provided under this Agreement, such failure shall not constitute the waiver by that party of the right to require the other party to perform at a later time.
 13.3  If one party violates any clause of this Agreement and obtains a waiver of liability from the non-violating party, such waiver shall not constitute the waiver of liability by the non-violation party over the violations by the other party at a later time or of other clauses of this Agreement.
 Article 14  No Transfer
 Unless otherwise provided in this Agreement, without the prior written consent of the other party, one party shall not transfer or entrust this Agreement or any right or 
 

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 obligation under this Agreement to a third party, nor shall one party provide any guarantee to a third party or do other similar things.
 Article 15  Miscellaneous 
 15.1  Any supplemental agreements entered into by the parties after the effective date of this Agreement shall be an effective part of this Agreement and have the same legal effect as this Agreement.  If there is any discrepancy between the supplemental agreement and this Agreement, the supplemental agreement shall prevail.
 15.2  This Agreement is written both in Chinese and English; in case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.
 15.3  This Agreement shall be executed in four counterparts; each party holds one and the rest are used for the transaction of related formalities.  Each of the copies shall be deemed as the original one and has the same effect.
 

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 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement specified on the first page of this Agreement.
 

 Party A:Qianxian Media Advertising (Beijing) Co., Ltd.(seal)
 Legal Representative (signature):
 

 Party B: HuashangWujie (Beijing) Internet Technology Co., Ltd.(seal)
 Legal Representative (signature):
 

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 Management Entrustment Agreement
 

 Statement
 Date: February 5, 2015
 I agree that Qianxian Media Advertising (Beijing) Co., Ltd.signs the Management Entrustment Agreement with HuashangWujie (Beijing) Internet Technology Co., Ltd., which irrevocably entrusts HuashangWujie (Beijing) Internet Technology Co., Ltd.for its management the right of operation management of Qianxian Media Advertising (Beijing) Co., Ltd.and the right from me according to the laws and the Articles of Association of Qianxian Media Advertising (Beijing) Co., Ltd.
 

 Stated by :
 Yong Xu(ID No.110221196803042219):
 

 Yahong Zhao(ID No. 130404196503310021):
 

 Yinghua Zhang(ID No.131082197509220775):
 

 

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