Document:

Exhibit 4.6

 

Exclusive Purchase Option Agreement

 

This Exclusive Purchase Option Agreement (“this Agreement”) is executed by and among the Parties below as of [Execution Date], in Shanghai, the People’s Republic of China (“China”):

 

Party A:                        Shanghai Chu Le Information Technology Co., Ltd., a wholly foreign owned enterprise duly registered in China, with its address at          ;

 

Party B:                        [Name of VIE Shareholder], a citizen of the China with Chinese identification No.:          ; and

 

Party C:                        [Name of VIE], a limited liability company organized and existing under the laws of China, with its address at          .

 

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

 

Whereas:

 

1.                      Party B is a shareholder of Party C and holds [Percentage of Shareholder’s Equity Interests in the VIE]% of the equity interest in Party C;

 

2.                      Party A and Party B entered into a Loan Agreement on [Date of Loan Agreement] (the “Loan Agreement”);

 

3.                      [Party A and Party B entered into an Exclusive Purchase Option Agreement on August 6, 2012 (the “Prior Option Agreement”), pursuant to which Party B agrees to grant Party A an exclusive right through this Contract, and Party A agrees to accept such exclusive right to purchase all or part equity interest held by Party B in Party C.]*

 

Note:

 

* The content in bracket is only in the amended and restated exclusive purchase option agreements among Shanghai Chule (CooTek) Information Technology Co., Ltd. and each shareholder of Shanghai Chubao (CooTek) Information Technology Co., Ltd.

 

Strictly Confidential

 

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4.                      The Parties desire to amend, restate, supersede and replace in its entirety the Prior Option Agreement.

 

Now therefore, upon mutual discussion and negotiation, the Parties have reached the following agreement:

 

1.                      Sale and Purchase of Equity Interest

 

1.1                       Option Granted

 

In consideration of the payment of RMB10.00 by Party A, the receipt and adequacy of which is hereby acknowledged by Party B, Party B hereby irrevocably grants Party A an irrevocable and exclusive right to purchase, or designate one or more persons (each, a “Designee”) to purchase the equity interests in Party C now or then held by Party B (regardless whether Party B’s capital contribution and/or percentage of shareholding is changed or not in the future) once or at multiple times at any time in part or in whole at Party A’s sole and absolute discretion to the extent permitted by Chinese laws and at the price described in Section 1.3 herein (such right being the “Equity Interest Purchase Option”). Except for Party A and the Designee(s), no other person shall be entitled to the Equity Interest Purchase Option or other rights with respect to the equity interests of Party B. Party C hereby agrees to the grant by Party B of the Equity Interest Purchase Option to Party A. The term “person” as used herein shall refer to individuals, corporations, partnerships, partners, enterprises, trusts or any other type of economic entity.

 

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1.2                       Steps for Exercise of Equity Interest Purchase Option

 

Subject to the provisions of the laws and regulations of China, Party A may exercise the Equity Interest Purchase Option by issuing a written notice to Party B (the “Equity Interest Purchase Option Notice”), specifying: (a) Party A’s decision to exercise the Equity Interest Purchase Option; (b) the portion of equity interests to be purchased from Party B (the “Optioned Interests”); and (c) the date for purchasing the Optioned Interests.

 

1.3                       Equity Interest Purchase Price

 

The purchase price of the Optioned Interests (the “Base Price”) shall be RMB[Base Price]. If appraisal is required by the laws of China at the time when Party A exercises the Equity Interest Purchase Option, the Parties shall negotiate in good faith and based on the appraisal result make necessary adjustment to the Equity Interest Purchase Price so that it complies with any and all then applicable laws of China (collectively, the “Equity Interest Purchase Price”).

 

1.4                       Transfer of Optioned Interests

 

For each exercise of the Equity Interest Purchase Option by Party A:

 

1.4.1                            Party B shall cause Party C to promptly convene a shareholders meeting, at which a resolution shall be adopted approving Party B’s transfer of the Optioned Interests to Party A and/or the Designee(s);

 

1.4.2                            Party B shall obtain written statements from the other shareholders of Party C giving consent to the transfer of the equity interest to Party A and/or the Designee(s) and waiving any right of first refusal related thereto;

 

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1.4.3                     Party B shall execute a share transfer contract with respect to each transfer with Party A and/or each Designee (whichever is applicable), in accordance with the provisions of this Agreement and the Equity Interest Purchase Option Notice regarding the Optioned Interests;

 

1.4.4                     The relevant Parties shall execute all other necessary contracts, agreements or documents, obtain all necessary government licenses and permits and take all necessary actions to transfer valid ownership of the Optioned Interests to Party A and/or the Designee(s), unencumbered by any security interests, and cause Party A and/or the Designee(s) to become the registered owner(s) of the Optioned Interests. For the purpose of this Section and this Agreement, “security interests” shall include securities, mortgages, third party’s rights or interests, any stock options, acquisition right, right of first refusal, right to offset, ownership retention or other security arrangements, but shall be deemed to exclude any security interest created by this Agreement and Party B’s Equity Pledge Agreement. “Party B’s Equity Pledge Agreement” as used in this Section and this Agreement shall refer to the Equity Pledge Agreement (including any amendment from time to time, if any) executed by and among Party A, Party B and Party C on the date of this Agreement.

 

1.5                       Payment of the Equity Interest Purchase Price

 

The Parties have agreed in the Loan Agreement that any proceeds obtained by Party B through the transfer of its equity interests in Party C shall be used for repayment of the loan provided by Party A in accordance with the Loan Agreement. Accordingly, upon exercise of the Equity Interest Purchase Option, Party A may elect to make payment of the Equity Interest Purchase Price through cancellation of the outstanding amount of the loan owed by Party B to Party A, in which case Party A shall not be required to pay any additional Equity Interest Purchase Price to Party B.

 

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2.                      Covenants

 

2.1                       Covenants regarding Party C

 

Party B (as a shareholder of Party C) and Party C hereby covenant as follows:

 

2.1.1                     Without the prior written consent of Party A, they shall not in any manner supplement, change or amend the articles of association and bylaws of Party C, increase or decrease its registered capital, or change its structure of registered capital in other manners;

 

2.1.2                     They shall maintain Party C’s corporate existence in accordance with good financial and business standards and practices by prudently and effectively operating its business and handling its affairs;

 

2.1.3                     Without the prior written consent of Party A, they shall not at any time following the date hereof, sell, transfer, mortgage or dispose of in any manner any assets of Party C or legal or beneficial interest in the business or revenues of Party C, or allow the encumbrance thereon of any security interest;

 

2.1.4                     Without the prior written consent of Party A, they shall not incur, inherit, guarantee or suffer the existence of any debt, except for (i) debts incurred in the ordinary course of business other than through loans; and (ii) debts disclosed to Party A for which Party A’s written consent has been obtained;

 

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2.1.5                     They shall always operate all of Party C’s businesses during the ordinary course of business to maintain the asset value of Party C and refrain from any action/omission that may affect Party C’s operating status and asset value;

 

2.1.6                     Without the prior written consent of Party A, they shall not cause Party C to execute, materially amend or early terminate any major contract, except the contracts in the ordinary course of business (for purpose of this subsection, a contract with a value exceeding RMB 100,000, or involves any material assets or intellectual property rights, or is entered into with any related party, shall be deemed a major contract);

 

2.1.7                     Without the prior written consent of Party A, they shall not cause Party C to provide any person with any loan or credit;

 

2.1.8                     They shall provide Party A with information on Party C’s business operations and financial condition at Party A’s request;

 

2.1.9                     If requested by Party A, they shall procure and maintain insurance in respect of Party C’s assets and business from an insurance carrier acceptable to Party A, at an amount and type of coverage typical for companies that operate similar businesses;

 

2.1.10              Without the prior written consent of Party A, they shall not cause or permit Party C to merge, consolidate with, acquire or invest in any person;

 

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2.1.11              They shall immediately notify Party A of the occurrence or possible occurrence of any litigation, arbitration or administrative proceedings relating to Party C’s assets, business or revenue, and shall not reach any settlement in respect of such proceedings without the prior written consent of Party A;

 

2.1.12              To maintain the ownership by Party C of all of its assets, they shall execute all necessary or appropriate documents, take all necessary or appropriate actions and file all necessary or appropriate complaints or raise necessary and appropriate defenses against all claims;

 

2.1.13              Without the prior written consent of Party A, they shall ensure that Party C shall not in any manner distribute dividends to its shareholders, provided that upon Party A’s written request, Party C shall immediately distribute all distributable profits to its shareholders; and

 

2.1.14              At the request of Party A, they shall appoint any persons designated by Party A as the director (or executive director) of Party C.

 

2.2                       Covenants of Party B and Party C

 

Party B hereby covenants as follows:

 

2.2.1                     Without the prior written consent of Party A, Party B shall not sell, transfer, mortgage or dispose of in any other manner any legal or beneficial interest in the equity interests in Party C held by Party B, or allow the encumbrance thereon of any security interest, except for the pledge placed on these equity interests in accordance with Party B’s Equity Pledge Agreement;

 

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2.2.2                     Party B shall cause the shareholders’ meeting and/or the board of directors (or executive director) of Party C not to approve the sale, transfer, mortgage or disposition in any other manner of any legal or beneficial interest in the equity interests in Party C held by Party B, or allow the encumbrance thereon of any security interest, without the prior written consent of Party A, except for the pledge placed on these equity interests in accordance with Party B’s Equity Pledge Agreement;

 

2.2.3                     Party B shall cause the shareholders’ meeting and/or the board of directors (or executive director) of Party C not to approve the merger or consolidation with any person, or the acquisition of or investment in any person, without the prior written consent of Party A;

 

2.2.4                     Party B shall immediately notify Party A of the occurrence or possible occurrence of any litigation, arbitration or administrative proceedings relating to the equity interests in Party C held by Party B;

 

2.2.5                     Party B shall cause the shareholders’ meeting and/or the board of directors (or executive director) of Party C to vote their approval of the transfer of the Optioned Interests as set forth in this Agreement and to take any and all other actions that may be requested by Party A;

 

2.2.6                     To the extent necessary to maintain Party B’s ownership in Party C, Party B shall execute all necessary or appropriate documents, take all necessary or appropriate actions and file all necessary or appropriate complaints or raise necessary and appropriate defenses against all claims;

 

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2.2.7                     Party B shall appoint any designee of Party A as the director (or executive director) of Party C, at the request of Party A;

 

2.2.8                     At the request of Party A at any time, Party B shall promptly and unconditionally transfer its equity interests in Party C to Party A’s Designee(s) in accordance with the Equity Interest Purchase Option under this Agreement, and Party B hereby waives its right of first refusal (if any) to the share transfer by the other existing shareholder of Party C (if any); and

 

2.2.9                     Party B shall strictly abide by the provisions of this Agreement and other contracts jointly or separately executed by and among Party B, Party C and Party A, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability hereof and thereof. To the extent that Party B has any remaining rights with respect to the equity interests subject to this Agreement hereunder or under Party B’s Equity Pledge Agreement or under the Power of Attorney granted in favor of Party A, Party B shall not exercise such rights except in accordance with the written instructions of Party A.

 

3.                      Representations and Warranties

 

Party B and Party C hereby represent and warrant to Party A, jointly and severally, as of the date of this Agreement and each date of transfer of the Optioned Interests, that:

 

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3.1               They have the authority to execute and deliver this Agreement and any share transfer contracts to which they are a party concerning the Optioned Interests to be transferred thereunder (each, a “Transfer Contracts”), and to perform their obligations under this Agreement and any Transfer Contracts. Party B and Party C agree to enter into Transfer Contracts consistent with the terms of this Agreement upon Party A’s exercise of the Equity Interest Purchase Option. This Agreement and the Transfer Contracts to which Party B and Party C are the parties constitute or will constitute their legal, valid and binding obligations and shall be enforceable against them in accordance with the provisions thereof;

 

3.2               The execution and delivery of this Agreement or any Transfer Contracts and the obligations under this Agreement or any Transfer Contracts shall not: (i) cause any violation of any applicable laws of China; (ii) be inconsistent with the articles of association, bylaws or other organizational documents of Party C; (iii) cause the violation of any contracts or instruments to which they are a party or which are binding on them, or constitute any breach under any contracts or instruments to which they are a party or which are binding on them; (iv) cause any violation of any condition for the grant and/or continued effectiveness of any licenses or permits issued to either of them; or (v) cause the suspension or revocation of or imposition of additional conditions to any licenses or permits issued to either of them;

 

3.3               Party B has a good and merchantable title to the equity interests in Party C he holds. Except for Party B’s Equity Pledge Agreement, Party B has not placed any security interest on such equity interests;

 

3.4               Party C has a good and merchantable title to all of its assets, and has not placed any security interest on the aforementioned assets;

 

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

 

3.6                     Party C has complied with all laws and regulations of China applicable to asset acquisitions; and

 

3.7                     There are no pending or threatened litigation, arbitration or administrative proceedings relating to the equity interests in Party C, assets of Party C or Party C.

 

4.                      Effective Date

 

This Agreement shall become effective upon the date hereof, and maintain effective unless terminated in accordance with the provisions hereof, or was compelled to terminate under applicable PRC laws and regulations.

 

5.                      Governing Law and Resolution of Disputes

 

5.1                       Governing law

 

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

 

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5.2                       Methods of Resolution of Disputes

 

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

 

6.                      Taxes and Fees

 

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

 

7.                      Notices

 

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

 

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

 

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

 

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

 

Party A:                           Shanghai Chu Le Information Technology Co., Ltd.

Address:

Attn:                                            Zhang Kan

Phone:

Facsimile:

 

Party B:                           [Name of VIE Shareholder]

Address:

Facsimile:

 

Party C:                           [Name of VIE]

Address:

Attn:                                            

Phone:

Facsimile:

 

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

 

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8.                      Confidentiality

 

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

 

9.                      Further Warranties

 

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

 

10.               Miscellaneous

 

10.1                Amendment, change and supplement

 

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

 

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10.2                Entire agreement

 

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

 

10.3                Headings

 

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

 

10.4                Language

 

This Agreement is written in both Chinese and English language in three copies, each Party having one copy with equal legal validity; in case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.

 

10.5                Severability

 

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

 

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10.6                Successors

 

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

 

10.7                Survival

 

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

 

10.7.2              The provisions of Section 5, 7, 8 and this Section 10.7 shall survive the termination of this Agreement.

 

10.8                Waivers

 

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

 

[The Remainder of this page is intentionally left blank]

 

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

 

 

	
Party A:                             Shanghai Chu Le Information Technology Co., Ltd.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ 
    
	
Name:
    	
 
    
	
Title:
    	
 
    

 

 

	
Party B:                             [Name of VIE Shareholder]
    	
 
    

 

	
By:
    	
/s/ 
    	
 
    

 

 

	
Party C:                             [Name of VIE]
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ 
    
	
Name:
    	
 
    
	
Title:
    	
 
    

 

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Schedule of Material Differences

 

One or more persons entered into exclusive purchase option agreement with Shanghai Chule (CooTek) Information Technology Co., Ltd. using this form. Pursuant to Instruction ii to Item 601 of Regulation S-K, the Registrant may only file this form as an exhibit with a schedule setting forth the material details in which the executed agreements differ from this form:

 

	
No.
    	
 
    	
Name of Variable
   Interest Entity
   (the “VIE”)
    	
 
    	
Name of
   VIE
   Shareholder
    	
 
    	
% of
   Shareholder’s
   Equity
   Interests in
   the VIE
    	
 
    	
Date of
   Loan
   Agreement
    	
 
    	
Base Price
   (RMB)
    	
 
    	
Execution
   Date
    	
 
    
	
1.
    	
 
    	
Shanghai Chubao (CooTek) Information   Technology Co., Ltd
    	
 
    	
Zhang Kan
    	
 
    	
25%
    	
 
    	
August 6, 2012
    	
 
    	
RMB250,000
    	
 
    	
October 30, 2012
    	
 
    
	
2.
    	
 
    	
Shanghai Chubao (CooTek)   Information Technology Co., Ltd
    	
 
    	
Zhu Haiyan
    	
 
    	
18%
    	
 
    	
August 6, 2012
    	
 
    	
RMB180,000
    	
 
    	
October 30, 2012
    	
 
    
	
3.
    	
 
    	
Shanghai Chubao (CooTek) Information   Technology Co., Ltd
    	
 
    	
Li Qiaoling
    	
 
    	
21.94%
    	
 
    	
August 6, 2012
    	
 
    	
RMB219,400
    	
 
    	
October 30, 2012
    	
 
    
	
4.
    	
 
    	
Shanghai Chubao (CooTek)   Information Technology Co., Ltd
    	
 
    	
Wang Jialiang
    	
 
    	
21.94%
    	
 
    	
August 6, 2012
    	
 
    	
RMB219,400
    	
 
    	
October 30, 2012
    	
 
    
	
5.
    	
 
    	
Shanghai Chubao (CooTek)   Information Technology Co., Ltd
    	
 
    	
Wang Jian
    	
 
    	
13.12%
    	
 
    	
August 6, 2012
    	
 
    	
RMB131,200
    	
 
    	
October 30, 2012
    	
 
    
	
6.
    	
 
    	
Molihong (Shenzhen)   Internet Technology Co., Ltd.
    	
 
    	
Wang Jialiang
    	
 
    	
50%
    	
 
    	
October 26, 2017
    	
 
    	
RMB2,500,000
    	
 
    	
October 26, 2017
    	
 
    
	
7.
    	
 
    	
Molihong (Shenzhen)   Internet Technology Co., Ltd.
    	
 
    	
Wang Jian
    	
 
    	
50%
    	
 
    	
October 26, 2017
    	
 
    	
RMB2,500,000
    	
 
    	
October 26, 2017
    	
 
    
	
8.
    	
 
    	
Yingsun Information   Technology (Ningbo) Co., Ltd.
    	
 
    	
Wang Jialiang
    	
 
    	
50%
    	
 
    	
November 30, 2017
    	
 
    	
RMB5,000,000
    	
 
    	
November 30, 2017
    	
 
    
	
9.
    	
 
    	
Yingsun Information   Technology (Ningbo) Co., Ltd.
    	
 
    	
Wang Jian
    	
 
    	
50%
    	
 
    	
November 30, 2017
    	
 
    	
RMB5,000,000
    	
 
    	
November 30, 2017
    	
 
    
	
10.
    	
 
    	
Shanghai Qiaohan Technology   Co., Ltd.
    	
 
    	
Wang Jialiang
    	
 
    	
50%
    	
 
    	
July 19, 2019
    	
 
    	
RMB500,000
    	
 
    	
July 19, 2019
    	
 
    
	
11.
    	
 
    	
Shanghai Qiaohan Technology   Co., Ltd.
    	
 
    	
Wang Jian
    	
 
    	
50%
    	
 
    	
July 19, 2019
    	
 
    	
RMB500,000
    	
 
    	
July 19, 2019Exhibit 4.7

 

Equity Pledge Agreement

 

This Equity Pledge Agreement (“this Agreement”) has been executed by and among the following parties on [Execution Date] in Shanghai, the People’s Republic of China (the “China”):

 

Pledgee:                     Shanghai Chu Le Information Technology Co., Ltd. (“Pledgee” or “Party A”)

Address:                      

 

Pledgor:                     [Name of VIE Shareholder] (“Pledgor” or “Party B”)

ID No.:                        

 

Party C:                     [Name of VIE]

Address:                      

 

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

 

Whereas:

 

1.                      Pledgor is a citizen of China, and holds [Percentage of Shareholder’s Equity Interests in the VIE] % of the equity interest in Party C. Party C is a limited liability company registered in Shanghai, China, engaging in the technology development, technology transfer and other related business. Pledgee is a wholly foreign-owned enterprise registered in China.

 

1.                      Pledgee and Party C executed an Exclusive Business Cooperation Agreement on [Date of Exclusive Business Cooperation Agreement] in Shanghai, pursuant to which Pledgee exclusively provides technology and consultation service for Party C and Party C pays consulting and services fee to Pledgee as the consideration.

 

Strictly Confidential

 

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2.                      [Pledgee, Pledgor and Party C executed an Equity Pledge Agreement (the “Prior Pledge Agreement”) on August 6, 2012 in Shanghai, pursuant to which, Pledgor pledges all its current and future equity interests in Party C (no matter whether the shareholding percentage changes or not) to secure its payment obligation under the Exclusive Business Cooperation Agreement.]*

 

3.                      Pledgee, Pledgor and Party C executed an Exclusive Purchase Option Agreement on [Date of Exclusive Purchase Option Agreement] in Shanghai, pursuant to which Pledgor irrevocably grants Pledgee or any other entity or individual designated by Pledgee an exclusive option to directly or indirectly purchase all or part of equity interest owned by Pledgor in Party C.

 

4.                      Pledgor issued a Power of Attorney on [Date of Power of Attorney] to Pledgee which irrevocably authorized Pledgee to act on behalf of Pledgor to exercise all rights in connection with the equity interest held by Pledgor in Party C.

 

5.                      As the Parties desires to expand the security scope of Prior Pledge Agreement so as to secure all the obligations of Pledgor and Party C under the Exclusive Business Cooperation Agreement, the Exclusive Purchase Option Agreement, the Loan Agreement and the Power of Attorney, the Parties desire to amend, restate, supersede and replace in its entirety the Prior Pledge Agreement.

 

To perform the provisions of the Transaction Documents, the Parties have mutually agreed to execute this Agreement upon the following terms.

 

Note:

* The content in bracket is only in the amended and restated equity pledge agreements among Shanghai Chule (CooTek) Information Technology Co., Ltd. and each shareholder of Shanghai Chubao (CooTek) Information Technology Co., Ltd. 

 

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1.                      Definitions

 

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

 

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

 

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

 

1.3                     Term of Pledge: shall refer to the term set forth in Section 3.2 of this Agreement.

 

1.4                     Transaction Documents: shall refer to the Exclusive Business Cooperation Agreement, Exclusive Purchase Option Agreement, Loan Agreement and Power of Attorney (the Attachment 3, Attachment 4, Attachment 5 and Attachment 6).

 

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

 

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

 

2.                      The Pledge

 

As collateral security for the duly performance by Pledgor and Party C of their respective obligations under the Transaction Documents and the timely and complete payment when due (whether at stated maturity, by acceleration or otherwise) of any and all of the payments due by Party C under the Transaction Documents, including without limitation the consulting and services fees payable to the Pledgee under the Exclusive Business Cooperation Agreement, Pledgor hereby pledges to Pledgee a first security interest in all of Pledgor’s right, title and interest, whether now owned or hereafter acquired by Pledgor, in the Equity Interest of Party C.

 

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3.                      Term of Pledge

 

3.1                     The Pledge shall become effective on such date when the pledge of the Equity Interest contemplated herein has been registered with relevant administration for industry and commerce (the “AIC”). The Pledge shall be continuously valid until all payments due under the Transaction Documents have been fulfilled by Party C. Pledgor and Party C shall (1) register the Pledge in the shareholders’ register of Party C within three (3) working days following the execution of this Agreement, and (2) submit an application to the AIC for the registration of the Pledge of the Equity Interest contemplated herein within ten (10) working days following the execution of this Agreement. The parties covenant that for the purpose of registration of the Pledge (including re-registration of the Pledge when the percentage of equity interest the Pledgor holds in Party C changes), the parties hereto and all other shareholders of Party C shall submit to the AIC the Equity Interest Pledge Contract as set forth in the Attachment 7 of this Agreement in the form required by the AIC at the location of Party C which shall truly reflect the information of the Pledge hereunder (the “AIC Pledge Contract”). In case that there is any discrepancy between the AIC Pledge Contract and this Agreement, the provisions of this Agreement shall prevail. Pledgor and Party C shall submit all necessary documents and complete all necessary procedures, as required by the PRC laws and regulations and the relevant AIC, to ensure that the Pledge of the Equity Interest shall be registered with the AIC as soon as possible after filing.

 

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3.2                     During the Term of Pledge, in the event Party C fails to perform any of its obligations in accordance with the Transaction Documents, Pledgee shall have the right, but not the obligation, to dispose of the Pledge in accordance with the provisions of this Agreement.

 

4.                      Custody of Records for Equity Interest subject to Pledge

 

4.1                     During the Term of Pledge set forth in this Agreement, Pledgor shall deliver to Pledgee’s custody the original capital contribution certificate for the Equity Interest (the Attachment 2) and the original shareholders’ register containing the Pledge (the Attachment 1) within five (5) working days from the execution of this Agreement or from completion of the re-registration of shareholding when percentage of equity interest changed (in that case, Pledgor shall deliver to Pledgee’s custody the updated original capital contribution certificate for the Equity Interest and the updated original shareholders’ register containing the Pledge as attachment to this Agreement). Pledgee shall have custody of such original documents during the entire Term of Pledge set forth in this Agreement.

 

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

 

5.                      Representations and Warranties of Pledgor

 

5.1                     Pledgor is the sole legal and beneficial owner of the Equity Interest.

 

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

 

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

 

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

 

5

 

5.5                     No third party consent or government approval or registration, except for the Registration of Pledge with the AIC, is required in connection with the execution and performance of this Agreement;

 

5.6                     There is no pending disputation or litigation proceeding related to the Equity Interest.

 

6.                      Covenants and Further Agreements of Pledgor

 

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

 

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

 

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

 

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

 

6

 

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

 

6.3                     To protect or perfect the security interest granted by this Agreement for Pledgor and Party C’s performance of obligations under the Transaction Documents, Pledgor hereby undertakes to execute in good faith and to cause other parties who have an interest in the Pledge to execute all certificates, agreements, deeds and/or covenants required by Pledgee. Pledgor also undertakes to perform and to cause other parties who have an interest in the Pledge to perform actions required by Pledgee, to facilitate the exercise by Pledgee of its rights and authority granted thereto by this Agreement, and to enter into all relevant documents regarding ownership of Equity Interest with Pledgee or designee(s) of Pledgee (natural persons/legal persons). Pledgor undertakes to provide Pledgee within a reasonable time with all notices, orders and decisions regarding the Pledge that are required by Pledgee.

 

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

 

7.                      Event of Breach

 

7.1                       The following circumstances shall be deemed Event of Default:

 

7

 

 

7.1.1           Party C fails to fully and timely fulfill any liabilities under the Transaction Documents, including without limitation failure to pay in full any of the payment payable under the Transaction Documents or breaches any other obligations of Party C thereunder;

 

7.1.2           Pledgor or Party C has committed a material breach of any provisions of this Agreement;

 

7.1.3           The Pledgor and Party C fail to register the Pledge in the shareholders’ register of Party C or fail to complete the Registration of Pledge stipulated in Section 3.1;

 

7.1.4           Except as expressly stipulated in Section 6.1.1, Pledgor abandons the Equity Interest pledged or transfers or purports to transfer the Equity Interest pledged without the written consent of Pledgee;

 

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

 

7.1.6           Due to causes of the Pledgor or Party C, any other circumstances occur where the Pledgee is or may become unable to exercise its right with respect to the Pledge in accordance with applicable laws.

 

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

 

8

 

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

 

8.                      Exercise of Pledge

 

8.1                     Prior to the full payment of the funds under the Transaction Documents, without the Pledgee’s written consent, Pledgor shall not assign the Pledge or the Equity Interest in Party C.

 

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

 

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

 

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

 

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

 

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9.                      Assignment

 

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

 

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

 

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

 

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

 

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

 

10

 

10.               Termination

 

Upon the full payment of the funds under the Transaction Documents and upon termination of Party C’s obligations under the Transaction Documents, this Agreement shall be terminated, and Pledgee shall then cancel or terminate this Agreement as soon as reasonably practicable.

 

11.               Handling Fees and Other Expenses

 

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

 

12.               Confidentiality

 

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

 

11

 

13.               Governing Law and Resolution of Disputes

 

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

 

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

 

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

 

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14.               Notices

 

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

 

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

 

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

 

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

 

Party A:                           Shanghai Chu Le Information Technology Co., Ltd.

Address:                         

Attn:                                            

Phone:                                  

Facsimile:                 

 

Party B:                        [Name of VIE Shareholder]

Address:                         

Facsimile:                 

 

Party C:                        [Name of VIE]

Address:                         

Attn:                                            

Phone:                                  

Facsimile:                 

 

13

 

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

 

15.               Severability

 

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

 

16.               Attachments

 

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

 

17.               Effectiveness

 

17.1              This Agreement shall come into effect upon execution by the Parties as of the date first above written. Any amendments, changes and supplements to this Agreement shall be in writing and shall become effective upon the affixation of the signatures or seals of the Parties.

 

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

 

[The Remainder of this page is intentionally left blank]

 

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

 

 

Party A:                                                Shanghai Chu Le Information Technology Co., Ltd.

 

	
By:
    	
/s/ 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

 

Party B:                                            [Name of VIE Shareholder]

 

	
By:
    	
/s/ 
    	
 
    	
 
    

 

 

Party C:                                                [Name of VIE]

 

	
By:
    	
/s/ 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

16

 

Schedule of Material Differences

 

One or more persons entered into equity pledge agreement with Shanghai Chule (CooTek) Information Technology Co., Ltd. using this form. Pursuant to Instruction ii to Item 601 of Regulation S-K, the Registrant may only file this form as an exhibit with a schedule setting forth the material details in which the executed agreements differ from this form:

 

	
No.
    	
 
    	
Name of Variable
   Interest Entity (the
   “VIE”)
    	
 
    	
Name of VIE
   Shareholder
    	
 
    	
% of
   Shareholder’s
   Equity
   Interests in
   the VIE
    	
 
    	
Date of
   Exclusive
   Business
   Cooperation
   Agreement
    	
 
    	
Date of
   Exclusive
   Purchase
   Option
   Agreement
    	
 
    	
Date of
   Exclusive
   Power of
   Attorney
    	
 
    	
Base Price
   (RMB)
    	
 
    	
Execution
   Date
    
	
1.
    	
 
    	
Shanghai Chubao (CooTek)   Information Technology Co., Ltd
    	
 
    	
Zhang Kan
    	
 
    	
25%
    	
 
    	
August 6, 2012
    	
 
    	
October 30, 2012
    	
 
    	
October 30, 2012
    	
 
    	
RMB250,000
    	
 
    	
October 30, 2012
    
	
2.
    	
 
    	
Shanghai Chubao (CooTek)   Information Technology Co., Ltd
    	
 
    	
Zhu Haiyan
    	
 
    	
18%
    	
 
    	
August 6, 2012
    	
 
    	
October 30, 2012
    	
 
    	
October 30, 2012
    	
 
    	
RMB180,000
    	
 
    	
October 30, 2012
    
	
3.
    	
 
    	
Shanghai Chubao (CooTek)   Information Technology Co., Ltd
    	
 
    	
Li Qiaoling
    	
 
    	
21.94%
    	
 
    	
August 6, 2012
    	
 
    	
October 30, 2012
    	
 
    	
October 30, 2012
    	
 
    	
RMB219,400
    	
 
    	
October 30, 2012
    
	
4.
    	
 
    	
Shanghai Chubao (CooTek)   Information Technology Co., Ltd
    	
 
    	
Wang Jialiang
    	
 
    	
21.94%
    	
 
    	
August 6, 2012
    	
 
    	
October 30, 2012
    	
 
    	
October 30, 2012
    	
 
    	
RMB219,400
    	
 
    	
October 30, 2012
    
	
5.
    	
 
    	
Shanghai Chubao (CooTek)   Information Technology Co., Ltd
    	
 
    	
Wang Jian
    	
 
    	
13.12%
    	
 
    	
August 6, 2012
    	
 
    	
October 30, 2012
    	
 
    	
October 30, 2012
    	
 
    	
RMB131,200
    	
 
    	
October 30, 2012
    
	
6.
    	
 
    	
Molihong (Shenzhen)   Internet Technology Co., Ltd.
    	
 
    	
Wang Jialiang
    	
 
    	
50%
    	
 
    	
October 26, 2017
    	
 
    	
October 26, 2017
    	
 
    	
October 26, 2017
    	
 
    	
RMB2,500,000
    	
 
    	
October 26, 2017
    
	
7.
    	
 
    	
Molihong (Shenzhen)   Internet Technology Co., Ltd.
    	
 
    	
Wang Jian
    	
 
    	
50%
    	
 
    	
October 26, 2017
    	
 
    	
October 26, 2017
    	
 
    	
October 26, 2017
    	
 
    	
RMB2,500,000
    	
 
    	
October 26, 2017
    
	
8.
    	
 
    	
Yingsun Information   Technology (Ningbo) Co., Ltd.
    	
 
    	
Wang Jialiang
    	
 
    	
50%
    	
 
    	
November 30, 2017
    	
 
    	
November 30, 2017
    	
 
    	
November 30, 2017
    	
 
    	
RMB5,000,000
    	
 
    	
November 30, 2017
    
	
9.
    	
 
    	
Yingsun Information Technology   (Ningbo) Co., Ltd.
    	
 
    	
Wang Jian
    	
 
    	
50%
    	
 
    	
November 30, 2017
    	
 
    	
November 30, 2017
    	
 
    	
November 30, 2017
    	
 
    	
RMB5,000,000
    	
 
    	
November 30, 2017
    
	
10.
    	
 
    	
Shanghai Qiaohan Technology   Co., Ltd.
    	
 
    	
Wang Jialiang
    	
 
    	
50%
    	
 
    	
July 19, 2019
    	
 
    	
July 19, 2019
    	
 
    	
July 19, 2019
    	
 
    	
RMB500,000
    	
 
    	
July 19, 2019
    
	
11.
    	
 
    	
Shanghai Qiaohan Technology   Co., Ltd.
    	
 
    	
Wang Jian
    	
 
    	
50%
    	
 
    	
July 19, 2019
    	
 
    	
July 19, 2019
    	
 
    	
July 19, 2019
    	
 
    	
RMB500,000
    	
 
    	
July 19, 2019

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