Document:

Exhibit 4.26

 

English Translation

 

Share Pledge Agreement

 

This Share Pledge Agreement (hereinafter referred to as this “Agreement”) is entered into on this15th of September, 2015 in Chaoyang District of Beijing, the People’s Republic of China (“China” or the “PRC”),by and among:

 

Party A: Kusheng (Tianjin) Technology Co., Ltd.

Address: Room 201-243, Floor 2, District B1, Animation Building, No.126, Animation Middle Road, Eco City, Tianjin, PRC.

 

Party B: Dongxu Wang (ID card No.: ##################)

Residence: ##################;

 

Party C: Mingfeng Chen (ID card No.: ##################)

Residence: ##################.

 

(Party A, Party B and Party C hereinafter individually referred to as a “Party” and collectively the “Parties”.)

 

Whereas,

 

1.              Party A is a wholly foreign-owned enterprise duly incorporated and existing under the laws of the People’ Republic of China (the “PRC”);

 

2.              Tianjin Ku6 Network Communication Technology Co., Ltd. (hereinafter referred to as the “Company”) is a limited liability company incorporated in the PRC;

 

3.              Party B and Party C are shareholders of the Company (hereinafter referred to as the “Pledgors”), holding 90% and 10% of the equity interest in the Company respectively;

 

4.              For the benefit of the development of the Company, each of the Pledgors and Party A entered into a loan agreement respectively On September 15, 2015, according to which, the Pledgors borrowed RMB10 million from Party A for the purpose of paying share transfer price to purchase 100% equity interest of the Company (the “Loan”). Party B borrowed RMB9 million and use this amount as the consideration to obtain 90% equity interest of the Company, Party C borrowed RMB1 million and use this amount as the consideration to obtain 10% equity interest of the Company ;

 

5.              On the day thereof, Party A, the Company and the Pledgors entered into a business operations agreement and an exclusive call option agreement (the “Option Agreement”); and Party A and the Company entered into an exclusive technology consulting and service framework agreement (the “Exclusive Technology Framework Agreement”);

 

 

6.              In order to ensure the repayment of the Loan under the Loan Agreement, the collection of the service fees under the Exclusive Technology Framework Agreement by Party A from the Company and the performance of all the obligations by the Pledgors and the Company under the Option Agreement and the Business Operations Agreement (Collectively, the “Agreement Obligations”), the Pledgors pledge all of the Equity Interest as a security of the performance of the obligations under the aforementioned agreements in favor of Party A who is the Pledgee hereunder.

 

NOW THEREFORE, based on the principle of equality and mutual benefits and through friendly negotiation, the Parties agree as follows:

 

1.              Definition

 

Unless otherwise specified in the context, the capitalized terms used in this Agreement shall have the meaning set forth below:

 

1.1            “Right of Pledge” shall mean the rights conferred upon Party A pursuant to Section 2 hereunder.

 

1.2            “Equity Interest” shall mean all the equity interest held by the Pledgors lawfully and all present and future rights and interests conferred on such equity interest.

 

1.3            “Each Agreement” shall mean the abovementioned Loan Agreement, the Option Agreement, the Exclusive Technology Consulting and Service Framework Agreement and the Business Operations Agreement.

 

1.4            “Event of Default” shall mean any event set forth in Section 7 hereunder.

 

1.5            “Notice of Default” shall mean the notice of default issued by Party A in accordance with this Agreement for declaring the default.

 

2.              Pledge

 

2.1       The Pledgors pledge all of the Equity Interest in the Company in favor of Party A as a security for Party A’s rights and interests under Each Agreement.

 

2.2       The pledge of equity interest hereunder shall be a security for all fees (including legal costs), expenditures, losses, interests, liquidated damages, compensations, expenses for realization of creditor’s rights, payable to Party A by the Company and/or the Pledgors, and the liabilities of the Company and the Pledgors towards Party A when Each Agreement becomes invalid in whole or in part for any reason.

 

 

2.3       The Right of Pledge hereunder refers to the right of Party A to be compensated on a preferential basis with discount sale, auction or disposition price of the pledged Equity Interest.

 

2.4            Unless otherwise expressly agreed in writing by Party A after this Agreement comes into effect, the Pledge hereunder may be released only when the Company and the Pledgors have duly performed all of their obligations hereunder and such performance have been accepted by Party A in writing. In the event that the Company or the Pledgors fails to perform the whole or any part of their obligations or liabilities under Each Agreement when the term of Each Agreement expires, Party A shall be still entitled to the Right of Pledge hereunder, unless and until the said obligations and liabilities are performed in a way satisfactory to Party A.

 

3.              Validity and Term

 

3.1       This Agreement shall come into effect from the date when it is entered into by the Parties, and the Right of Pledge shall come into effect from the date when the Pledge is duly registered with the Administration for Industry and Commerce.

 

3.2            In the event that the Company fails to pay the service fees or to perform any other provisions under the Exclusive Technology Framework Agreement, or fails to perform any provision under the Business Operations Agreement or the Option Agreement in the pledge period, Party A is entitled to exercise the Right of Pledge in accordance with this Agreement after giving reasonable notice.

 

4.              Possession and Safekeeping of Pledge Documents

 

4.1            The Pledgors shall deliver their shareholder contribution certificates (original copy) to Party A within ten (10) business days from the execution date of this Agreement or on any other earlier date mutually agreed by the Parties, provide Party A with the certificate evidencing that the Pledge hereunder has been duly recorded in the equity register, complete all approval, registration and filing as required by the laws and regulations of the PRC, and submit the equity pledge registration certificates issued by the Administration for Industry and Commerce. The forms of the shareholder contribution certificate and the equity register are referred to in the Appendices hereto.

 

4.2            In case of any changes to the pledge of equity interest which is required to be registered according to laws, Party B, Party C and Party A shall have such changes registered pursuant to relevant laws and regulations within five (5) business days from the date when such changes occur and submit relevant registration documents for such changes.

 

 

4.3            The Pledgors shall cause the Company not to declare or distribute any dividends or profits during the term of pledge unless agreed by Party A in writing in advance.

 

4.4            In the event that any Pledgor subscribes any new registered capital of the Company or acquires any equity interest from other pledgors hereunder (collectively hereinafter referred to as the “Increased Equity”) during the term of pledge, such Increased Equity shall become part of the Equity Interest under the pledge hereunder automatically. In such case, the Pledgors shall complete all formalities as necessary for pledging the Increased Equity within ten (10) business days after the Increased Equity is acquired. In the event that the Pledgors fail to complete relevant formalities according to the foregoing provisions, Party A shall be entitled to exercise the Right of Pledge with immediate effect in accordance with Section 8 hereunder.

 

5.              Representations and Warranties

 

The Pledgors represent and warrant to Party A as follows as of the execution date of this Agreement, and acknowledge that the execution and performance of this Agreement by Party A rely upon such representations and warranties.

 

5.1            The Pledgors lawfully own the Equity Interest and have the rights to pledge such Equity Interest in favor of Party A.

 

5.2            There is no claim or intervention from any third party when Party A exercises its rights or the Right of Pledge in accordance with this Agreement at any time.

 

5.3            Party A is entitled to exercise the Right of Pledge in a manner as provided under the laws, regulations and this Agreement.

 

5.4            The execution of this Agreement and the performance of their obligations hereunder have been duly authorized or approved, and shall not violate any applicable laws and regulations and the articles of association of the Company.

 

5.5            There is no other encumbrance or secured rights and benefits (including but not limited to pledges) in favor of a third party against the Equity Interest held by the Pledgors.

 

5.6            There is no pending civil, administrative or criminal suit or administrative penalty or arbitration in relation to the Equity Interest, nor civil, administrative or criminal suit or administrative penalty or arbitration that may arise in the future.

 

 

5.7            There is no due and outstanding tax, expense, or due and uncompleted legal proceeding or formality in relation to the Equity Interest.

 

5.8            All provisions hereof constitute their true intents and are legally binding upon them.

 

6.              Covenants and Undertakings by Pledgors

 

6.1            During the term of this Agreement, the Pledgors covenant and undertake to Party A that the Pledgors shall:

 

6.1.1       not assign the Equity Interest, create or permit to create any pledges in favor of any third party that may have an adverse effect on the rights of Party A in any way without Party A’s prior written consents, except for transfer of the Equity Interest to Party A or any other person designated by Party A at the request of Party A;

 

6.1.2       abide by all applicable laws and regulations, and notify Party A of any notice, order or suggestion within five (5) business days after receipt thereof from relevant competent authorities, and take actions according to Party A’s reasonable instructions;

 

6.1.3       notify Party A in a timely manner of any events or any notices received which may affect the Equity Interest or any part of their rights, and any events or any notices received which may affect the Pledgors’ covenant and obligations under this Agreement or which may affect the Pledgors’ performance of their obligations under this Agreement, and take actions according to Party A’s reasonable instructions.

 

6.2            The Pledgors agree that the exercise of the Right of Pledge by Party A hereunder shall not be interrupted or impaired by them or their successors or assignees or any other persons.

 

6.3            In order to protect or improve the security hereunder against the repayment and the obligations of the Pledgors and/or the Company under Each Agreement, the Pledgors undertakes to Party A that they will cause the Company to amend its articles of association to the extent necessary, execute all title certificates and deeds requested by Party A in good faith and cause other persons related to the Right of Pledge to do so, perform the actions required by Party A and cause other related persons to do so, provide convenience for the exercise of the Right of Pledge by Party A, enter into legal documents with Party A or any third party designated by Party A with respect to modification of the equity register, and provide Party A within a reasonable period with all necessary documents in relation to the Right of Pledge as Party A believes necessary.

 

 

6.4            The Pledgors hereby individually and jointly undertake that, in case of any equity transfer as a result of Party A’s exercise of the Right of Pledge pursuant to Section 8 hereunder, they will waive the preemptive right with respect to such equity transfer.

 

6.5            For the sake of Party A’s benefits, the Pledgors undertake to Party A that they will abide by and perform all of their warranties, undertakings, agreements and statements. In the event that the Pledgors fail to perform or incompletely perform their warranties, undertakings, agreements and statements, they shall indemnify all of Party A’s losses arising therefrom.

 

7.              Events of Default

 

7.1            Any of the following events shall be an event of default:

 

7.1.1                     The Pledgors or the Company or their respective successors or assignees fail to fully perform the obligations under Each Agreement;

 

7.1.2                     Any of the representations, warranties or undertakings of the Pledgors under Sections 5 and 6 hereof is materially misleading or wrong, and/or there exist any actions which violate the representations, warranties or undertakings of the Pledgors under Sections 5 and 6 hereof;

 

7.1.3                     The Pledgors violate any provisions hereof materially;

 

7.1.4                     The Pledgors dispose of the Equity Interest, unless otherwise specified in Section 6.1.1;

 

7.1.5                     The Pledgors’ borrowings, security, compensations, undertakings or any other liabilities are required to be repaid or performed prior to the scheduled due date or are due but can not be repaid and performed as scheduled and thereby cause Party A to deem that the Pledgors’ capability to perform the obligations herein has deteriorated and thus has damaged Party A’s interests;

 

7.1.6                     The Pledgors fail to repay their general liabilities or other debts due and thereby Party A’s benefits are affected;

 

7.1.7                     This Agreement becomes invalid or the Pledgors are unable to further perform their obligations hereunder due to the promulgation of relevant laws;

 

 

7.1.8                     Any governmental consents, permits, approvals or authorizations, which are necessary to the enforcement, legitimacy or validity of this Agreement, have been withdrawn, suspended, expired or modified substantially;

 

7.1.9                     Adverse changes occur to the properties owned by the Pledgors, which make Party A deem that the Pledgors’ capability to perform their obligations hereunder have been affected adversely;

 

7.1.10              Other circumstances where Party A is unable to exercise the Right of Pledge hereunder in accordance with the laws and regulations.

 

7.2            In the event that the Pledgors are aware of or find out any matter specified in Section 7.1 or any other events that may result in occurrence of any of the foregoing events, they shall inform Party A of such matters or events in writing forthwith.

 

7.3            Unless an event of default under Section 7.1 above is solved to the satisfaction of Party A, Party A may at any time send a written Notice of Default to the Pledgors when or after such default arises, and require the Pledgors to make full repayment of the Loan or exercise the Right of Pledge in accordance with Section 8 hereunder.

 

8.              Exercise of Right of Pledge

 

8.1            Party A shall send the Notice of Default to the Pledgors when Party A exercises the Right of Pledge for reason of default by the Pledgors.

 

8.2            Subject to Section 7.3 hereunder, Party A may exercise the Right of Pledge at any time when Party A gives the Notice of Default in accordance with Section 7.3 hereunder.

 

8.3            Party A shall be entitled to exercise the Right of Pledge in accordance with laws until the Loan is fully repaid and any liabilities, outstanding service fees and other payables under Each Agreement are fully cleared.

 

8.4            When Party A exercises the Right of Pledge, the Pledgors shall not interrupt such exercise, and shall give necessary assistance so that Party A is able to exercise the Right of Pledge.

 

 

9.              Assignment

 

9.1                 Without Party A’s prior written consent, the Pledgors shall not assign any of their rights and/or obligations hereunder to any third party.

 

9.2                 This Agreement shall be binding upon the Pledgors and their successors, and inure to the benefit of Party A and its successors or assignees.

 

9.3                 Party A may at any time assign all or any part of its rights or obligations hereunder to any third party designated by it. In such case, such third party shall enjoy and bear Party A’s rights and obligations hereunder. When Party A assigns its rights and obligations under this Agreement, the Pledgors shall execute the agreements and/or documents in relation to such assignment at Party A’s request.

 

9.4                 In the event that the Pledgee is changed for the reason of the said assignment, the parties to the changed pledge shall enter into a new pledge agreement, and the Pledgors shall be responsible for completing all relevant registration formalities.

 

10.       Commission Charge and Other Fees

 

10.1          Any fees and out-of-pocket expenses in relation to this Agreement, including but not limited to legal fees, costs of duplicate, stamp duties and any other taxes and fees, shall be equally borne by Party A and the Pledgors.

 

11.       Force Majeure

 

11.1          When the performance of this Agreement is delayed or interrupted due to any Force Majeure Events, the Party so affected (the “Affected Party”) shall be excused from such delayed or interrupted performance. “Force Majeure Events” shall mean any events beyond the reasonable controls of the Affected Party, which are unavoidable even if the Affected Party takes a reasonable care, including but not limited to governmental acts, Act of God, fires, explosion, geographic variation, storms, floods, earthquakes, morning and evening tides, lightning or wars. However, any shortage of credits, funds or financing shall not be deemed as the events beyond reasonable controls of the Affected Party. The Affected Party seeking for the exemption of any performance under this Agreement or any provision hereof shall inform the other Party of such exemption and its proposed measures for making further performance as soon as practicable.

 

11.2          The Affected Party shall be exempted from any liability hereunder provided that it shall have tried its best efforts to perform this Agreement. However, the exempted liabilities shall be subject to such delayed or interrupted performance. Once the causations for the said exemption are corrected or remedied, each party shall try its best efforts to recover the performance of this Agreement.

 

 

12.       Governing Law and Dispute Resolution

 

12.1          The conclusion, validity, performance, interpretation and dispute resolution of this Agreement shall be governed by and construed in accordance with the laws of the PRC.

 

12.2          Any dispute arising out of the interpretation to or performance of this Agreement shall be resolved through friendly negotiation by the Parties; if the dispute cannot be resolved through negotiation, any Party may submit such dispute to the Beijing Arbitration Commission according to it then effective arbitration rules. The language in the arbitration proceedings shall be Chinese. The awards are final and binding upon the parties hereto.

 

12.3          Despite the disputes, any Party shall continue abide by the terms and provisions of this Agreement and take its responsibilities thereof in friendly principle.

 

13.       Notices

 

13.1          All notices and correspondence for the purpose of exercising the rights and performing the obligations hereunder shall be in writing, and be delivered in person, or by registered mail, postage prepaid mail, generally accepted courier service or facsimile to the following addresses of the Parties:

 

Party A: Kusheng (Tianjin) Technology Co., Ltd.

Address: Room 201-243, Floor 2, District B1, Animation Building, No.126, Animation Middle Road, Eco City, Tianjin, PRC.

 

Party B: Dongxu Wang
 Address: ##################

 

Party C: Mingfeng Chen
 Address: ##################

 

13.2              Any notice and correspondence shall be deemed to have been effectively delivered:

 

13.2.1    at the exact time displayed in the corresponding transmission record, if delivered by facsimile, unless such facsimile is sent after 5:00 pm or on a non-business day in the place where it is received, in which case the date of receipt shall be deemed to be the following business day;

 

 

13.2.2    on the date that the receiving Party signs for the document, if delivered in person (including express mail);

 

13.2.3    on the fifteenth (15th) day after the date shown on the registered mail receipt, if sent by registered mail.

 

14.       Appendix

 

Any appendix to this Agreement shall be an integral part hereof.

 

15.       Waiver

 

Any failure or delay to exercise any of its rights, remedies, powers or privileges hereunder by Party A shall not constitute a waiver of such rights, remedies, powers or privileges by Party A. Any single or partial exercise of any of its rights, remedies, powers or privileges hereunder by Party A shall not affect the exercise of any other rights, remedies, powers or privileges hereunder by Party A. The rights, remedies, powers or privileges hereunder are accumulated without any prejudices to any rights, remedies, powers or privileges specified by any laws and regulations.

 

16.       Miscellaneous

 

16.1          Any amendments, supplements or alterations to this Agreement shall be made in writing, which come to effect after they are executed and sealed (if applicable) by the Parties.

 

16.2          The Parties hereby confirm that this Agreement constitutes the fair and reasonable agreements by and between them on the basis of equality and mutual benefits. In the event that any provision hereof becomes invalid or unenforceable because such provision conflicts with relevant laws, such provision shall be void and null or unenforceable under applicable laws, and shall not affect the validity and enforcement of the remaining provisions of this Agreement.

 

16.3          The Pledgors undertake that any provision herein is binding upon them regardless of any change of the Company’s Equity Interest respectively held by each of them in the future, and that this Agreement shall be applicable to all of the Company’s Equity Interest to be held by each of them then.

 

16.4          This Agreement is made in Chinese with three (3) originals with each Party holding one original.

 

 

[There is no text below on this page.]

 

 

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

 

	
Party   A: Kusheng (Tianjin) Technology   Co., Ltd.
    	
 
    
	
/s/ (Seal)
    	
 
    
	
 
    	
 
    
	
Party   B: Dongxu Wang (Signature)
    	
 
    
	
/s/ Dongxu Wang
    	
 
    
	
 
    	
 
    
	
Party   C: Mingfeng Chen (Signature)
    	
 
    
	
/s/ Mingfeng ChenExhibit 4.27

 

English Translation

 

Amended and Restated

 

Exclusive Call Option Agreement

 

This Amended and Restated Exclusive Call Option Agreement (this “Agreement”) is entered into on this 15th day of September, 2015 in Chaoyang District of Beijing, the People’s Republic of China (“China” or the “PRC”) by and among:

 

Party A: Kusheng (Tianjin) Technology Co., Ltd.

Address: Room 201-243, Floor 2, District B1, Animation Building, No.126, Animation Middle Road, Eco City, Tianjin, PRC.

 

Party B: Dongxu Wang (ID Card No.: ##################)

Residence: ##################;

 

Party C: Mingfeng Chen (ID Card No.: ##################)

Residence: ##################;

 

Party D: Ku6 Network Communication Technology Co., Ltd.

Address: Room 201-369, Floor 2, District B1, Animation Building, No.126, Animation Middle Road, Eco City, Tianjin, PRC

 

(Party A, Party B, Party C and Party D individually referred to as a “Party” and collectively the “Parties”.)

 

Whereas,

 

1. Party A is a wholly foreign-owned enterprise incorporated and existing under the laws of the PRC;

 

2. Party D is a limited liability company incorporated and existing in the PRC;

 

3. Party B and Party C, for the benefit of the business and commercial operation of Party A, together own the entire registered capital of Party D (the “Equity”);

 

4. For the benefit of the development of Party D, Party B and Party C entered into loan agreements with Party A respectively in September 15, 2015, according to which, Party B and Party C borrowed RMB10 million from Party A for purchasing 100% equity interest of Party D (the “Loan”). Party B borrowed RMB 9 million and use this amount as the consideration to obtain 90% equity interest of the Company, Party C borrowed RMB1 million and use this amount as the consideration to obtain 10% equity interest of the Company;

 

 

5. Party A desires the exclusive option to purchase the Equity from Party B and Party C, while Party B and Party C (collectively, the “Grantors”) agree to grant Party A an exclusive call option to purchase the Equity.

 

NOW THEREFORE, the Parties hereby agree as follows:

 

1.              Granting of Option 

 

1.1            Authorization

 

The Grantors hereby agree to jointly and severally grant to Party A the exclusive option (the “Option”) subject to the terms and conditions set forth in this Agreement to purchase the Equity at any time at the lowest price permitted by the then applicable laws and regulations of the PRC. Such Option shall be granted to Party A with immediate effect after this Agreement is entered into by the Parties and comes into effect, and shall not be cancelled or altered during the Term of this Agreement (including any period extended according to Article 1.2 below).

 

1.2            Term

 

This Agreement is entered into and comes into effect on the date first written above. This Agreement is valid for twenty (20) years from the date when it comes into effect (the “Term”). In the event that Party A wishes to extend this Agreement prior to the expiration of the Term, the Parties shall do so and shall enter into a new exclusive call option agreement or continue to perform this Agreement at Party A’s request.

 

2.              Exercise of Option and Delivery

 

2.1            Time of Exercise

 

2.1.1  The Grantors agree that Party A may at any time, and from time to time after the effective date hereof, exercise the Option in whole or in part subject to applicable laws and regulations of the PRC;

 

2.1.2  The Grantors agree that there is no restraint with respect to the times for Party A’s exercising the Option, until Party A or any third party designated by Party A has acquired and owned all the Equity in Party D;

 

2.1.3  The Grantors agree that Party A may appoint a third party to exercise the Option for and on behalf of it; however, Party A shall inform the Grantors of such appointment in writing in advance.

 

 

2.2            Disposition of Exercise Consideration

 

The Grantors agree that all the amount obtained by them from Party A’s exercising the Option shall be used to repay the Loan or transferred to any third party designated by Party A.

 

2.3            Transfer

 

The Grantors agree that Party A may transfer its Option hereunder to any third party in whole or part without any further consent of the Grantors. In such case, such third party shall be deemed as a party to this Agreement and shall exercise the Option hereunder subject to the conditions hereunder, and shall enjoy and bear all of Party A’s rights and obligations hereunder.

 

2.4            Notice on Exercise

 

In case Party A exercises the Option hereunder, it shall notify the Grantors of such exercise in writing ten (10) business days prior to the Delivery Date (as defined below). Such notice shall cover the following contents:

 

2.4.1                effective delivery date (the “Delivery Date”) of the Equity after the Option is exercised;

 

2.4.2                name of registered holder of the Equity after the Option is exercised;

 

2.4.3                respective number and proportion of the Equity purchased from the Grantors;

 

2.4.4                exercise consideration and payment method; and

 

2.4.5                power of attorney (if the exercise is made by a third party designated by Party A).

 

2.5            Transfer of Equity

 

(1)              The Grantors shall cause Party D to convene the shareholders’ meeting, in which the resolution on the assignment of the Equity of the Grantors to Party A and/or the third party designated by Party A shall be passed;

 

(2)              The Grantors shall enter into a transfer agreement substantially consistent with the equity transfer agreement specified in Appendix 1 hereto with Party A (or a third party designated by Party A, if applicable);

 

(3)              The Grantors shall undertake that they waive the right of first refusal they are entitled to the purchased Equity;

 

 

(4)              The Grantors shall enter into all other necessary contracts, agreements or documents, obtain all necessary governmental approvals and consents, take all actions necessary to assign the ownership of the purchased Equity to Party A and/or a third party designated by Party A without any encumbrances over such Equity, and ensure Party A and/or a third party designated by Party A to become the registered owner of the purchased Equity filed with the Administration for Industry and Commerce, and provide Party A and/or a third party designated by Party A with the updated business license, articles of association, approval certificates (if any) and other relevant documents issued or recorded by relevant competent authorities of the PRC, and such documents shall reflect the changes of the Equity, directors and legal representative of Party D.

 

3.              Representations and Warranties

 

3.1                     The Grantors represent and warrant that:

 

3.1.1           They have complete rights and authorizations to enter into and perform this Agreement;

 

3.1.2           The performance of this Agreement and their obligations hereunder shall not violate any laws, regulations and other agreements binding upon them, nor be required to be approved or authorized by the governmental authorities;

 

3.1.3           There is no suit, arbitration or other judicial or administrative proceedings that are pending or may affect the performance of this Agreement materially;

 

3.1.4           They have disclosed to Party A any and all circumstances that may adversely affect the performance of this Agreement;

 

3.1.5           They have not been declared as bankrupt, and their finance is in a good standing;

 

3.1.6           There is no pledge, security, liability and any other encumbrance in favor of a third party against the Equity held by them in Party D, and such Equity is exempted from any claims by any third party;

 

3.1.7           They will not cause any pledge, liability and any other encumbrance in favor of a third party against the Equity held by them in Party D, excluding the equity pledge agreement by and among them and Party A, and they will not dispose of the Equity held by them through assignment, donation, pledge or otherwise in favor of anyone else other than Party A or a third party designated by Party A;

 

 

3.1.8           The Option granted to Party A shall be exclusive, and they will not grant such Option or similar rights in any other way to anyone else other than Party A or a third party designated by Party A;

 

3.1.9           Party D’s businesses are in compliance with the laws, regulations, rules and the management provisions and guidance of relevant governmental competent authorities, and there is no violation of any such regulations that may have materially adverse effect on the company’s business or assets during the Term of this Agreement;

 

3.1.10    They will maintain Party D in good financial condition subject to commercial standards and practices, and operate Party D’s business prudently and efficiently, use best efforts to ensure Party D to hold the permits, licenses and approval necessary to Party D’s operation, and ensure that any such permits, licenses and approval will not be cancelled, withdrawn or declared as null and void;

 

3.1.11    They will provide Party A with Party D’s operation and finance information at Party A’s request;

 

3.1.12    Unless otherwise agreed by Party A (or a third party designated by Party A) in writing, before Party A (or a third party designated by Party A) exercises its Option and obtains all of Party D’s Equity or rights and benefits, Party D shall not:

 

(a)                       sell, assign, mortgage or otherwise dispose of any of its assets, business or incomes, nor create any other encumbrance on the same, unless otherwise any such sales, assignment, mortgage or disposal are created in the ordinary or daily business, or are disclosed to and agreed by Party A expressly in writing in advance;

 

(b)                       enter into any transactions that may have materially adverse effect on its assets, liabilities, operation, Equity and other legitimate rights, unless any such transactions are exercised in the ordinary or daily business, or have been disclosed to and agreed by Party A expressly in writing in advance;

 

(c)                        declare or distribute dividends or profits to its shareholders by any means;

 

(d)                       create, inherit, guarantee or permit any debts, unless otherwise (i) any such debts are created in the ordinary business; or (ii) any such debts are disclosed to and agreed by Party A expressly in writing in advance;

 

 

(e)                        enter into any material contract, excluding those contracts that are entered into in the ordinary operation of business. For the purpose of this paragraph, a contract with the value of more than RMB100,000 shall be treated as a material contract;

 

(f)                         increase or reduce its registered capital or otherwise change the structure of the registered capital by adopting shareholders’ meeting resolution;

 

(g)                        supplement, alter or modify its articles of association in any way; or

 

(h)                       merge or consolidate with any person, nor acquire any person or invest in any person.

 

3.1.13    Unless otherwise agreed by Party A (or a third party designated by Party A) in writing, before Party A (or a third party designated by Party A) exercises its Option and obtains all of Party D’s Equity or assets, the Grantors shall not collectively or individually:

 

(a)                       supplement, alter or modify Party D’s articles of association by any means, which may adversely affect the assets, liabilities, operation, Equity and other legitimate rights of Party D or may affect the performance of this Agreement and any other agreements by and among the Parties hereto;

 

(b)                       cause Party D to enter into any transactions that may have materially adverse effect on Party D’s assets, liabilities, operation, Equity and other legitimate rights, unless otherwise any such transactions are exercised in the ordinary or daily business, or have been disclosed to and agreed by Party A expressly in writing in advance;

 

(c)                        cause Party D’s shareholders’ meeting to adopt any resolution on declaration and distribution of any dividends and profits;

 

(d)                       sell, assign, mortgage or otherwise dispose of any other legitimate or beneficial rights and benefits in respect of Party D’s Equity, nor create any other encumbrances on Party D’s Equity at any time after this Agreement comes into effect;

 

(e)                        cause Party D’s shareholders’ meeting to approve the sales, assignment, mortgage or otherwise disposal of any legitimate or beneficial rights and benefits in respect of Party D’s Equity, or the creation of any other encumbrances on Party D’s Equity;

 

(f)                         cause Party D’s shareholders’ meeting to approve the merger or consolidation with Party D and any other person, or acquisition of any other person, or investment in any other person, or otherwise reorganization; or

 

 

(g)                        cease the operation of Party D, liquidate or dissolve Party D at its own discretion.

 

3.1.14    Before Party A (or a third party designated by Party A) exercises its Option and obtains all of Party D’s Equity or assets, the Grantors undertake to Party A as follows:

 

(a)                       to forthwith notify Party A in writing of any suits, arbitrations or administrative proceedings that have arisen or may arise in relation to the Equity, or of any circumstances that may have any adverse effect on such Equity;

 

(b)                       to cause the shareholders’ meeting of Party D to examine and approve the assignment of the purchased Equity specified in this Agreement, to cause Party D to amend its articles of association for reflecting the assignment of the Equity to Party A and/or a third party designated by Party A from the Grantors and reflecting other amendments specified in this Agreement, to apply to relevant competent authorities of the PRC for approving and completing the registration changes (if required by law), and to cause the shareholders’ meeting of Party D to approve and appoint such persons as designated by Party A and/or a third party designated by Party A as the new directors and new legal representative;

 

(c)                        in order to keep their lawful and effective ownership over the Equity, to enter into all documents as necessary, to take all necessary or appropriate actions, to institute all necessary or appropriate actions, and to defend any claims in an appropriate manner;

 

(d)                       to forthwith and unconditionally assign the Equity to any third party designated by Party A at the request of Party A at any time; or

 

(e)                        to strictly abide by this Agreement and other contracts collectively or individually entered into by and among Party B, Party C and Party A, to duly perform their obligations under this Agreement and such contracts, and not to take any action or omission that may materially affect the validity and enforceability of this Agreement and such contracts.

 

3.1.15    The Grantors shall bear the joint and several liabilities with respect to their obligations hereunder.

 

 

3.2            Undertakings

 

The Grantors shall bear all costs arising out of the assignment of the Equity and complete all formalities necessary to make Party A and/or the third party designated by Party A become the shareholder of Party D. The aforementioned formalities shall include but not be limited to assisting Party A in obtaining relevant approvals necessary to the assignment of the Equity from the governmental authorities and filing necessary documents with the Administration for Industry and Commerce.

 

3.3                 As of the execution date hereof and each Delivery Date, the Grantors shall hereby represent and warrant to Party A as follows:

 

3.3.1           they have the powers and abilities to enter into and deliver this Agreement and any equity transfer agreement to which they are a party for each assignment of the purchased Equity, and to perform their obligations under this Agreement and the aforementioned equity transfer agreement;

 

3.3.2           neither the execution and delivery of this Agreement or any equity transfer agreement nor the performance of their obligations under this Agreement or any such equity transfer agreement will: (i) violate any relevant laws and regulations of the PRC; (ii) conflict with their articles of association or other constitutional documents; (iii) violate any contract or deed to which they are one party, or which is binding upon them, or constitute the breach of any contract or deed to which they are one party, or which is binding upon them; (iv) violate any permit or approval and/or any valid conditions issued or granted to them; or (v) cause the suspension, cancellation of or attachment of additional conditions to any permit or approval issued or granted to them;

 

3.3.3           the Grantors have good and available-for-sale ownership of the Equity. Neither of them has created any encumbrances over the Equity;

 

3.3.4           party D does not have any outstanding liabilities, excluding (i) such liabilities as may arise in its normal business, and (ii) such obligations have been disclosed to and agreed by Party A expressly in writing in advance;

 

3.3.5           party D shall abide by all laws and regulations applicable to the acquisition of the Equity and assets; and

 

3.3.6           there is no on-going, pending or potential suit, arbitration or administrative proceedings in relation to the Equity, Party D or its assets.

 

 

4.              Special Covenants

 

The Grantors undertake that any provision hereunder is binding upon them irrespective of any change of the Equity held by them respectively in the future, and that this Agreement shall be applicable to all equity interest then held by them in Party D.

 

5.              Taxes

 

Each Party shall bear their respective taxes arising out of the performance of this Agreement at its own costs.

 

6.              Breach of Contract

 

6.1                 In case Party B, Party C or Party D breaches this Agreement or any of their representations and warranties hereunder, Party A may give a written notice to the breaching Party requiring the breaching party to correct its defaults within ten (10) days upon receipt of such notice, to take necessary measures for avoiding any damages, and to continue to perform this Agreement. In case of any occurrence of damages, the breaching party shall indemnify Party A so as to ensure that Party A is able to obtain all rights and benefits as if this Agreement would have been performed.

 

6.2                 In the event that Party B, Party C or Party D fails to correct its defaults within ten (10) days upon receipt of the said notice in accordance with Section 6.1 above, Party A shall be entitled to request such breaching party to indemnify any costs, liabilities or losses (including but not limited to the lost interests and attorney’s fees) that may be paid or suffered by Party A due to such defaults.

 

7.              Governing Law and Dispute Resolution

 

7.1            Governing Law

 

This Agreement, including but not limited to the conclusion, performance, validity and interpretation to this Agreement, shall be governed by the laws of the PRC.

 

7.2            Friendly Negotiation

 

Any dispute arising out of the interpretation to or performance of this Agreement shall be resolved through friendly negotiation or intermediation by a third party; if the dispute cannot be resolved through negotiation, such dispute shall be submitted to the arbitration committee within thirty (30) days from the date when the dispute resolution is discussed.

 

 

7.3            Arbitration

 

Any dispute arising out of this Agreement shall be referred to the Beijing Arbitration Commission according to it then effective arbitration rules. The awards shall be final and binding upon the Parties.

 

8.              Confidentiality

 

8.1            Confidential Information

 

No Party shall disclose to any third party any information in connection with the other Parties hereunder which is obtained during the course of performing this Agreement, unless otherwise agreed by the Parties in writing in advance. This Section shall survive after this Agreement is terminated.

 

8.2            Exceptions

 

Any disclosure of the confidential information required by the laws, court’s judgments, arbitration awards and decisions of governmental authorities shall not constitute the breach against Section 8.1 above.

 

9.              Miscellaneous

 

9.1            Entire Agreement

 

The Parties hereby confirm that this Agreement constitutes the fair and reasonable agreements by and among them on the basis of equality and mutual benefits. This Agreement constitutes the entire agreement among the Parties in respect of the subject matter hereunder, and supersedes all of their previous discussions and negotiations. In the event that any previous discussions, negotiations and agreements in respect of the subject matter hereunder conflict with this Agreement, this Agreement shall prevail. This Agreement can be modified by the Parties in writing. The appendix to this Agreement is integral to it, and shall have the same effect and force with this Agreement.

 

9.2            Notices

 

9.2.1           All notices and correspondence for the purpose of exercising the rights and performing the obligations hereunder shall be in writing, and be delivered in person, or by registered mail, postage prepaid mail, generally accepted courier service or facsimile to the following addresses of the Parties:

 

 

Party A: Kusheng (Tianjin) Technology Co., Ltd.

Address: Room 201-243, Floor 2, District B1, Animation Building, No.126,
 Animation Middle Road, Eco City, Tianjin, PRC.

 

Party B: Dongxu Wang

 

Address: ##################

 

Party C: Mingfeng Chen

 

Address: ##################

 

Party D: Ku6 Network Communication Technology Co., Ltd.

Address: Room 201-369, Floor 2, District B1, Animation Building, No.126,
 Animation Middle Road, Eco City, Tianjin, PRC

 

9.2.2           Any notice and correspondence shall be deemed to have been effectively delivered:

 

(1)                       at the exact time displayed in the corresponding transmission record, if delivered by facsimile, unless such facsimile is sent after 5:00 pm or on a non-business day in the place where it is received, in which case the date of receipt shall be deemed to be the following business day;

 

(2)                       on the date that the receiving Party signs for the document, if delivered in person (including express mail);

 

(3)                       on the fifteenth (15th) day after the date shown on the registered mail receipt, if sent by registered mail.

 

9.2.3           Binding Force

 

This Agreement shall be binding upon each Party hereto.

 

9.3                     Language

 

This Agreement is made in Chinese with four (4) copies.

 

9.4                     Day and Business Day

 

A Day mentioned herein shall refer to a calendar day, and a Business Day mentioned herein shall refer to a day from Monday to Friday.

 

 

9.5                     Headings

 

The headings hereunder are for reading convenience only, and shall not affect the interpretations to this Agreement.

 

9.6                     Supplementary Provisions

 

The Grantors shall bear the obligations, undertakings and liabilities hereunder to Party A severally and jointly. As for Party A, any breach by any party of the Grantors shall constitute the breach of the Grantors automatically.

 

[There is no text on this page below.]

 

 

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

 

	
Party   A: Kusheng (Tianjin) Technology Co., Ltd.
    	
 
    
	
/s/ (Seal)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Party   B: Dongxu Wang 
    	
 
    
	
(Signature)
    	
 
    
	
 
    	
 
    
	
/s/ Dongxu Wang
    	
 
    
	
 
    	
 
    
	
Party   C: Mingfeng Chen 
    	
 
    
	
(Signature)
    	
 
    
	
 
    	
 
    
	
/s/ Mingfeng Chen
    	
 
    
	
 
    	
 
    
	
Party   D: Ku6 Network Communication Technology   Co., Ltd.
    	
 
    
	
/s/ (Seal)
    	
 
    

 

 

Appendix 1: Equity Transfer Agreement

 

Equity Transfer Agreement

 

This Equity Transfer Agreement (hereinafter referred to as this “Agreement”) is entered into on September 15, 2015 in Chaoyang District of Beijing, the People’s Republic of China (“China” or the “PRC”) by and between:

 

Party A: Kusheng (Tianjin) Technology Co., Ltd.

Address: Room 201-243, Floor 2, District B1, Animation Building, No.126,
 Animation Middle Road, Eco City, Tianjin, PRC; and

 

Party B: Dongxu Wang (ID Card No.: ##################)

Residence: ##################

 

Party C: Mingfeng Chen (ID Card No.: ##################)

Residence: ##################; and

 

Party D: Ku6 Network Communication Technology Co., Ltd.

Address: Room 201-369, Floor 2, District B1, Animation Building, No.126,
 Animation Middle Road, Eco City, Tianjin, PRC

 

(Party A, Party B, Party C and Party D hereinafter individually referred to as a “Party” and collectively the “Parties”.)

 

Whereas,

 

1.              Party A is a wholly foreign-owned enterprise incorporated and existing under the laws of the People’s Republic of China (the “PRC”);

 

2.              Party D is a domestic company incorporated in Shanghai. Party B and Party C currently together hold 100% of equity interest in Party D the “Equity”);

 

3.              Party B and Party C desire to transfer, and Party A and/or a third party designated by Party A agree(s) to accept, the Equity in whole or in part in accordance with the Amended and Restated Exclusive Call Option Agreement by and among Party B, Party C and Party A (the “Equity Transfer”).

 

NOW THEREFORE, it is hereby agreed as follows:

 

 

1.              Equity Transfer

 

1.1       Party B and Party C agree to transfer the Equity to Party A, and Party A agrees to acquire such Equity. Upon completion of the Equity Transfer, Party A shall hold 100% of the Equity.

1.2       Party A shall pay Party B and Party C in the amount of RMB 10 million as the consideration of the Equity Transfer in accordance with Section 2 hereof.

1.3       Party B and Party C agree on the Equity Transfer under this Section, and will cause other shareholders of Party D (other than Party B and Party C) to sign necessary documents such as resolutions of shareholders’ meeting and waiver of pre-emption right of the Equity, and to assist in completing other formalities as necessary for the Equity Transfer.

1.4       Party B, Party C and Party D shall take all necessary actions jointly or individually, including but not limited to entering into this Agreement, adopting the resolutions of shareholders’ meeting and the amendments to the articles of association, for the purpose of effecting the Equity Transfer and shall be responsible for obtaining all governmental approvals or completing all registration formalities with the Administration for Industry and Commerce within ten (10) business days from the date when Party A issues the exercise notice in accordance with the Amended and Restated Exclusive Call Option Agreement through which Party A is registered as the owner of the Equity.

 

2.              Payment for Transfer Price

 

2.1       Party A shall pay RMB 9 million and RMB1 million to Party B and Party C respectively within five (5) business days after Party B and Party C complete all governmental approval and registration formalities in relation to the Equity Transfer.

2.2       Party B and Party C shall provide Party A with appropriate receipts within five (5) business days after they receive the payment set out in section 2.1 above.

 

3.              Representations and Warranties

 

3.1       Each of the Parties hereto represents and warrants that:

 

(a)         It is a company legally incorporated and existing or an individual with full civil capacity, and has complete powers and abilities to enter into this Agreement and other documents in relation to this Agreement and necessary to achieve the purpose of this Agreement;

(b)         It has taken or will take all necessary actions to authorize the execution, delivery and performance of this Agreement and the documents in relation to the transaction hereunder, and such execution, delivery and performance shall not violate any relevant laws, regulations and governmental provisions, nor infringe the legitimate rights and interests of any third party.

 

 

3.2       Party B, Party C and Party D represent and warrant jointly and individually to Party A that:

 

(a)         Party B and Party C currently hold 100% Equity of Party D lawfully and effectively, and the acquisition and possession of such Equity by Party B and Party C does not violate any laws, regulations or governmental decisions or infringes the interests and rights of any third party;

 

(b)         Party D is a limited liability company incorporated and existing under the laws of the PRC, and it has full capacity and the rights to own, dispose of and operate its assets and business, and to carry out the business in process or planned. Party D has obtained all permits, qualification certificates or other governmental approvals, permits, records and have completed all registration formalities in relation to all businesses specified in its business license;

 

(c)          Party D has never violated any relevant laws, regulations or governmental provisions since its establishment;

 

(d)         There is no encumbrance over or other rights of a third party against the Equity;

 

(e)          None of them has omitted any documents or information provided to Party A, in relation to Party D or Party D’s business, which may affect Party A’s decision in entering into this Agreement;

 

(f)           They will not authorize or cause Party D to change the registered capital or shareholding structure of Party D by any means prior to the completion of the Equity Transfer.

 

4.              Validity and Term

 

This Agreement shall be executed and come into effect on the date first written above.

 

5.              Dispute Resolution

 

This agreement, including but not limited to the execution, performance, validity, interpretation and other maters not mentioned herein shall be governed and construed by China Law.

 

Any dispute arising out of the interpretation to or performance of this Agreement shall be resolved through friendly negotiation(s). In the event that the Parties fail to agree on a dispute resolution within thirty (30) days after one Party proposes to resolve the dispute through friendly negotiation(s), any Party may submit such dispute to the Beijing Arbitration Commission according to the it then effective rules. The language in the arbitration proceedings shall be in Chinese. The awards shall be final and binding upon the Parties.

 

 

6.              Amendment and Supplement to the Agreement

 

The Parties shall amend and supplement this Agreement in writing. Any amendment and supplement shall be integral to this Agreement after being executed by the Parties and shall have the same force and effect with this Agreement.

 

7.              Severability

 

In the event that any provision hereof becomes invalid or unenforceable due to conflicts with relevant laws, such provision shall be held invalid or unenforceable to the extent required by the relevant governing laws, and shall not affect the validity of the remaining provisions of this Agreement.

 

8.              Appendix to Agreement

 

Any appendix to this Agreement shall be integral to this Agreement and shall have the same force and effect with this Agreement.

 

9.              Miscellaneous

 

9.1       This Agreement is made in Chinese with 4 counterparts.

9.2       In the event that Party A appoints any third party to exercise the option, the “Party A” mentioned in this Equity Transfer Agreement shall refer to Party A and/or the third party designated by Party A as the case may be.

 

[There is no text on this page below.]

 

 

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

 

	
Party   A: Kusheng (Tianjin) Technology   Co., Ltd.
    	
 
    
	
/s/ (Seal)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Party   B: Dongxu Wang 
    	
 
    
	
(Signature)
    	
 
    
	
 
    	
 
    
	
/s/ Dongxu Wang
    	
 
    
	
 
    	
 
    
	
Party   C: Mingfeng Chen 
    	
 
    
	
(Signature)
    	
 
    
	
 
    	
 
    
	
/s/ Mingfeng Chen
    	
 
    
	
 
    	
 
    
	
Party   D: Ku6 Network Communication Technology   Co., Ltd.
    	
 
    
	
/s/ (Seal)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]