Document:

Exhibit 4.45

 

Exclusive Business Cooperation Agreement

 

This Exclusive Business Cooperation Agreement (this “Agreement”) is made and entered into by and between the following parties on        ,2017, in Shanghai, the People’s Republic of China (“China” or the “PRC”).

 

Party A:            Yanhua Network Technology (Shanghai) Co., Ltd.

Address:             Room 605, 6th Floor, Building No.1, Lane 2145, Jingshajiang Road, Putuo District, Shanghai, PRC.

 

Party B:            Shanghai Youying E-commerce Co., Ltd.

Address:             Room D-07,1th Floor, Eastern Part, Building 1, Jiatai Road 29, Pilot Free Trade Zone, Shanghai, PRC.

 

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

 

Whereas,

 

1.                  Party A is a wholly foreign-owned enterprise established in China, and has sufficient resources for providing technical services and consultation service;

 

2.                  Party B is a company established in China with exclusive domestic capital and as registered with the relevant PRC government authorities, is permitted to engage in E-commerce business (may not engage in value-added telecommunications, financial services), engage in technical development, technical advice, technology transfer, technical services, investment advice, business information consulting in the field of new energy science and technology, engage in the sale of electronic products, photovoltaic equipment and components, and engage in the import and export of goods and technology business (Projects subjected to approval according to the law shall be subject to the approval of the relevant departments before carrying out business activities).  The businesses conducted by Party B currently and at any time during the term of this Agreement are collectively referred to as the “Principal Business”;

 

3.                  Party A is willing to provide Party B with technical development, technical support, management consultation and other related services on an exclusive basis in relation to the Principal Business during the term of this Agreement, utilizing its advantages in technology, team, and resources, and Party B is willing to accept such services provided by Party A or Party A’s designee(s), each on the terms set forth herein.

 

Now, therefore, through mutual discussion, the Parties have reached the following agreements:

 

1.                  Services Provided by Party A

 

1.1    Party B hereby appoints Party A as Party B’s exclusive services provider to provide Party B with comprehensive technical support, consulting services and other related services during the term of this Agreement, in accordance with the terms and conditions of this Agreement, including but not limited to the following:

 

Strictly Confidential

 

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(1)                       Licensing Party B to use the software legally owned by Party A;

 

(2)                       Development, maintenance and updating of relevant software necessary for Party B’s Business;

 

(3)                       Design, installation, daily management, maintenance and updating of network systems, hardware equipment and database;

 

(4)                       Technical support and training for employees of Party B;

 

(5)                       Assisting Party B in collection and research of technology and market information (excluding market research business that wholly foreign-owned enterprises are prohibited from conducting under PRC law);

 

(6)                       Providing business and management consultation for Party B;

 

(7)                       Providing marketing and promotional services for Party B;

 

(8)                       Providing customer order management and customer service for Party B;

 

(9)                       Leasing of equipment or properties; and

 

(10)                Other related services requested by Party B from time to time to the extent permitted under PRC law.

 

1.2    Party B agrees to accept all the services provided by Party A.  Party B further agrees that unless with Party A’s prior written consent, during the term of this Agreement, Party B shall not directly or indirectly accept the same or any similar services provided by any third party and shall not establish same or similar corporation relationships with any third party regarding the matters contemplated by this Agreement.  The Parties agree that Party A may appoint or designate its other parties to provide Party B with the services under this Agreement (the parties designated by Party A may enter into certain agreements described in Section 1.3 with Party B).

 

1.3    Service Providing Methodology

 

1.3.1           Party A and Party B agree that during the term of this Agreement, where necessary, Party B may enter into further service agreements with Party A or any other party designated by Party A, which shall provide the specific contents, methods, personnel, and fees for the specific services.

 

1.3.2           To fulfill this Agreement, Party A and Party B agree that during the term of this Agreement, where necessary, Party B may enter into equipment or property lease agreements with Party A or any other party designated by Party A which shall permit Party B to use Party A’s relevant equipment or property based on the business needs of Party B.

 

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1.3.3           Party B hereby grants to Party A an irrevocable and exclusive option to purchase from Party B, at Party A’s sole discretion, any or all of the assets and business of Party B, to the extent permitted under PRC law, and at the lowest purchase price permitted by PRC law.  The Parties shall then enter into a separate assets or business transfer agreement, specifying the terms and conditions of the transfer of the assets.

 

2.                  The Calculation and Payment of the Service Fees

 

2.1    The fees payable by Party B to Party A during the term of this Agreement shall be calculated as follows:

 

2.1.1           In consideration for the services provided by Party A to Party B hereunder, Party B shall pay a service fee to Party A on monthly  basis.  The service fees for each month shall consist of a management fee and a fee for services provided, which shall be determined by the Parties based on the following factors:

 

(1)                               Complexity and difficulty of the services provided by Party A;

 

(2)                               Seniority of and time consumed by the employees of Party A providing the services;

 

(3)                               Specific contents, scope and value of the services provided by Party A;

 

(4)                               Market price of the same type of services;

 

(5)                               Operation conditions of Party B.

 

2.1.2           If Party A transfers technology to Party B, develops software or other technology as entrusted by Party B, or leases equipment or properties to Party B, the technology transfer price, development fees or rent shall be determined by the Parties based on the actual situations.

 

3.                  Intellectual Property Rights and Confidentiality Clauses

 

3.1                    Party A shall have sole and exclusive ownership, rights and interests in any and all intellectual properties or intangible assets arising out of or created or developed during the performance of this Agreement by both Parties, including but not limited to copyrights, patents, patent applications, software, technical secrets, trade secrets and others Party B shall execute all appropriate documents, take all appropriate actions and otherwise conduct whatever is necessary as deemed by Party A at its sole discretion, for the purposes of vesting the ownership, right or interest of any such intellectual property rights and intangible assets in Party A, and/or perfecting the protections of any such intellectual property rights for Party A.

 

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3.2                     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 party, 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, directors, employees, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, directors, employees, 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 shareholders, director, employees of or agencies engaged by any Party shall be deemed disclosure of such confidential information by such Party and such Party shall be held liable for breach of this Agreement.

 

4.                  Representations and Warranties

 

4.1                     Party A hereby represents, warrants and covenants as follows:

 

4.1.1          Party A is a wholly foreign-owned enterprise legally established and validly existing in accordance with the laws of China; Party A or the service providers designated by Party A will obtain all government permits and licenses necessary for providing the service under this Agreement before providing such services.

 

4.1.2          Party A has taken all necessary corporate actions, obtained all necessary authorizations as well as all consents and approvals from third parties and government agencies (if required) for the execution, delivery and performance of this Agreement.    Party A’s execution, delivery and performance of this Agreement do not violate any explicit requirements under any law or regulation.

 

4.1.3          This Agreement constitutes Party A’s legal, valid and binding obligations, enforceable against it in accordance with its terms.

 

4.2                     Party B hereby represents, warrants and covenants as follows:

 

4.2.1.        Party B is a company legally established and validly existing in accordance with the laws of China and has obtained and will maintain all permits and licenses for engaging in the Principal Business in a timely manner.

 

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4.2.2.        Party B has taken all necessary corporate actions, obtained all necessary authorizations as well as all consents and approvals from third parties and government agencies (if required) for the execution, delivery and performance of this Agreement.    Party B’s execution, delivery and performance of this Agreement do not violate any explicit requirements under any law or regulation.

 

4.2.3.        This Agreement constitutes Party B’s legal, valid and binding obligations, and shall be enforceable against it in accordance with its terms.

 

5.                  Term of Agreement

 

5.1                  This Agreement shall become effective upon execution by the Parties. Unless expressly provided in  this Agreement or terminated by Party A in writing, this Agreement shall be in force forever.

 

5.2                  During the term of this Agreement, each Party shall renew its operation term prior to the expiration thereof so as to enable this Agreement to remain effective.  This Agreement shall be terminated upon the expiration of the operation term of a Party if the application for the renewal of its operation term is not approved by the competent government authorities.

 

5.3                  The rights and obligations of the Parties under Sections 3, 6, 7 and this Section 5.3 shall survive the termination of this Agreement.

 

6.                  Governing Law and Resolution of Disputes

 

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

 

6.2                  In the event of any dispute with respect to the interpretation and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations.  In the event the dispute is still not resolved within 30 days after one party issues a written notice to  the other party for resolution, either Party may submit the relevant dispute to the Shanghai International Economic and Trade Arbitration Commission for arbitration, in accordance with the arbitration rules of such arbitration commission effective at that time.  The place of the hearing of the arbitration shall be Shanghai.  The arbitration award shall be final and binding on both Parties.

 

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

 

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7.                  Breach of Agreement and Indemnification

 

7.1                    If Party B materially breaches any provision under this Agreement, Party A is entitled to terminate this Agreement and require Party B to compensate all the losses.  This Section7.1 shall not prejudice any other rights of Party A under this Agreement.

 

7.2                    Unless otherwise required by the applicable laws, Party B shall not terminate this Agreement in any event.

 

7.3                    Party B shall indemnify Party A and hold Party A harmless from any losses, damages, obligations or expenses caused by any lawsuit, claims or other demands against Party A arising from or caused by the services provided by Party A to Party B pursuant this Agreement, except where such losses, damages, obligations or expenses arise from the gross negligence or willful misconduct of Party A.

 

7.4                    The Parties acknowledge and agree that the Parties hereto are independent civil entities and shall assume relevant responsibilities and obligations independently. Party A shall not be held responsible for any acts of Party B by signing this Agreement. If Party A undertakes the relevant responsibilities and losses due to act of Party B, Party B shall compensate Party A.

 

8.                  Force Majeure

 

8.1                    In the case of any force majeure events (“Force Majeure”) such as earthquakes, typhoons, floods, fires, flu, wars, riots, strikes or any other events that cannot be predicted and are unpreventable and unavoidable by the affected Party, which directly causes the failure of either Party to perform or completely perform this Agreement, the Party affected by such Force Majeure shall not be liable for this non-performance.  However, the Party affected by such Force Majeure shall give the other Party written notices without any delay, and shall provide details within 15 days after sending out such notice, explaining the reasons for such failure of, partial or delay of performance.

 

8.2                    If such Party claiming Force Majeure fails to notify the other Party and furnish it with proof pursuant to the above provision, such Party shall not be excused from the non-performance of its obligations hereunder.  The Party so affected by the event of Force Majeure shall use reasonable efforts to minimize the consequences of such Force Majeure and to promptly resume performance hereunder whenever the causes of such excuse are cured.  Should the Party so affected by the event of Force Majeure fail to resume performance hereunder when the causes of such excuse are cured, such Party shall be liable to the other Party.

 

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8.3                    In the event of Force Majeure, the Parties shall immediately consult with each other to find an equitable solution and shall use all reasonable endeavors to minimize the consequences of such Force Majeure.

 

9.                  Notices

 

9.1                     All notices and other communications required to be given pursuant to this Agreement or otherwise given in connection with this Agreement shall be delivered personally, or sent by registered mail, prepaid postage, a commercial courier service, facsimile transmission or email to the address of such Party set forth below.  The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

9.1.1           Notices given by personal delivery, courier service, registered mail or prepaid postage shall be deemed effectively given on the date of receipt, refusal for any reason at the address set forth as notice address;

 

9.1.2           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).

 

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

 

	
Party A:
    	
Yanhua Network Technology (Shanghai)   Co., Ltd.
    
	
Address:
    	
Room 1301, Xin Changzheng Central Building, No.1219 Zhenguang   Road, Putuo District, Shanghai
    
	
Attn:
    	
Hao Wang
    
	
Tel:
    	
021-80129001
    
	
Fax:
    	
021-80129003
    
	
 
    	
 
    
	
Party B:
    	
Shanghai Youying E-commerce Co., Ltd.
    
	
Address:
    	
Room 1301, Xin Changzheng Central Building,   No. 1219 Zhenguang Road, Putuo District, Shanghai
    
	
Attn:
    	
Hao Wang
    
	
Tel:
    	
021-80129001
    
	
Fax:
    	
021-80129003
    

 

9.3                     Any Party may at any time change its address for notices by a notice delivered to the other Party in accordance with the terms of this Section.

 

10.           Assignment

 

10.1              Without Party A’s prior written consent, Party B shall not assign its rights and obligations under this Agreement to any third party.

 

10.2              Party B agrees that Party A may assign its obligations and rights under this Agreement to any third party and in case of such assignment, Party A is only required to give written notice to Party B and does not need any consent from Party B for such assignment.

 

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11.           Severability

 

In the event that one or several of the provisions of this Agreement are held 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 aspect.  The Parties shall negotiate 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.

 

12.           Amendments and Supplements

 

Any amendment, change and supplement to this Agreement may be made in writing by the Parties hereto.  Any amendment agreement and supplementary agreement duly executed by the Parties hereto with regard to this Agreement shall constitute an integral part of this Agreement, and shall have equal legal validity as this Agreement.

 

13.           Language and Counterparts

 

This Agreement is written in Chinese in two copies, each Party having one copy.

 

[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 Exclusive Business Cooperation Agreement as of the date first above written.

 

	
 
    	
 
    	
 
    
	
Party A:
    	
Yanhua Network Technology   (Shanghai) Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
Minghua Zhao
    	
 
    
	
Title:
    	
Legal   Representative
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party B:
    	
Shanghai Youying E-commerce   Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
Min Xiahou
    	
 
    
	
Title:
    	
Legal   RepresentativeExhibit 4.46

 

Exclusive Option Agreement

 

This Exclusive Option Agreement (this “Agreement”) is executed by and among the following Parties as of      , 2017, in Shanghai, the People’s Republic of China (“China” or the “PRC”):

 

Party A:            Yanhua Network Technology (Shanghai) Co., Ltd., a wholly foreign-owned enterprise incorporated and existing under applicable law of China having its registered office at Room 605, 6th Floor, Building No.1, Lane 2145, Jingshajiang Road, Putuo District, Shanghai, PRC;

 

Party B:            Min Xiahou, a Chinese citizen with Identification No.:350203196407134017; and

 

Party C:            Shanghai Youying E-commerce Co., Ltd., a limited liability company incorporated and existing under applicable law of China having its registered office at Room D-07,1th Floor, Eastern Part, Building 1, Jiatai Road 29, Pilot Free Trade Zone, Shanghai, PRC.

 

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

 

Whereas: Party B is the shareholder of Party C and as of the effective date of this Agreement holds 50% of the equity interests of Party C, representing RMB 5 million in the registered capital of Party C.  Party A and Party C have signed a series of control agreements (the “VIE Agreements”) in Shanghai such as Exclusive Business Cooperation 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 view of Party A has paid Party B RMB 10 as the consideration, and Party B confirmed receipt and that the consideration is sufficient, Party B hereby irrevocably grants Party A an exclusive right to purchase, or designate one or more persons (each, a “Designee”) to purchase the equity interests in Party C then held by Party B 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 non-corporate organizations.

 

Strictly Confidential

 

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1.2       Steps for Exercise of the 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 by Party A or the Designee from Party B (the “Optioned Interests”); and (c) the date for purchasing the Optioned Interests or the date for the transfer of the Optioned Interests.

 

1.3       Equity Interest Purchase Price

 

The total price for the purchase by Party A of all Optioned Interests held by Party B upon exercise of the Equity Interest Purchase Option by Party A shall be RMB 5 million; if Party A exercises the Equity Interest Purchase Option to purchase part of the Optioned Interests held by Party B in Party C, then the purchase price shall be calculated on a pro rata basis.  If at the time when Party A exercises the Equity Interest Purchase Option, the PRC laws impose mandatory requirements on the purchase price of such Optioned Interests, such that the minimum price permitted under PRC law is higher than the aforementioned price, then the purchase price shall be such minimum price permitted by PRC law (collectively, the “Equity Interest Purchase Price”).

 

1.4       Transfer of Optioned Interests

 

For each exercise of the Equity Interest Purchase Option:

 

1.4.1                    As one of the shareholders of Party C at that time, Party B shall promptly cause Party C to convene a shareholders’ meeting to ensure himself or herself and urge other shareholders to approve the resolution on Party B’s transfer of the Optioned Interests to Party A and/or the Designee(s);

 

1.4.2                    Party B shall execute an equity interest 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;

 

1.4.3                    Relevant party shall execute all necessary contracts, agreements or documents with relevant parties, obtain all necessary government approvals and permits, and take all necessary measures, so as 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, Party B’s Equity Interest Pledge Agreement and Party B’s Power of Attorney; “Party B’s Equity Interest Pledge Agreement” as used in this Agreement shall refer to the Interest Pledge Agreement executed by and among Party A, Party B and Party C on the date hereof and any modification, amendment and restatement thereto.; “Party B’s Power of Attorney” as used in this Agreement shall refer to the Power of Attorney executed by Party B on the date hereof granting Party A with a power of attorney and any modification, amendment and restatement thereto.

 

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1.5       Payment

 

When Party A exercises the Equity Interest Purchase Option, the Parties shall separately negotiate the specific payment method of the equity consideration.

 

2.                  Covenants

 

2.1    Covenants regarding Party C

 

Party B (as a shareholder of Party C) and Party C covenant from the effective date of this Agreement 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 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, obtain and maintain all necessary government licenses and permits 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 from the effective date of this Agreement, sell, transfer, mortgage or dispose of in any manner any material assets exceeding RMB 500,000 of Party C or legal or beneficial interest in the material 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 payables incurred in the ordinary course of business other than through loans;

 

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

 

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2.1.6                              Without the prior written consent of Party A, they shall not cause Party C to execute any major contract, except the contracts in the ordinary course of business (for the purpose of this subsection, a contract with a price exceeding RMB 500,000 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;

 

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, revenue or equity interest;

 

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, file all necessary or appropriate complaints, and raise necessary or 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;

 

2.1.14                       At the request of Party A, they shall appoint any person designated by Party A as the director or the senior executives of Party C;

 

2.1.15                       Without Party A’s prior written consent, they shall not engage in any business in competition with Party A or its affiliates; and

 

2.1.16                       Unless otherwise required by PRC law, Party C shall not be dissolved or liquated without prior written consent by Party A;

 

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2.2    Covenants of Party B

 

Party B covenants from the effective date of this Agreement 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, except for the interest placed in accordance with Party B’s Equity Interest Pledge Agreement and Party B’s Power of Attorney;

 

2.2.2                              Without the prior written consent of Party A, as a shareholder of Party C, Party B shall ensure himself/herself and shall procure the shareholders and/or the directors (or the executive director) of Party C not to approve any 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, except for the interest placed in accordance with Party B’s Equity Interest Pledge Agreement and Party B’s Power of Attorney;

 

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

 

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 ensure himself/herself and shall cause the shareholders or the directors (or the executive director) of Party C to vote in favor 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, file all necessary or appropriate complaints, and raise necessary or appropriate defenses against all claims;

 

2.2.7                              Party B shall appoint any designee of Party A as the director or the senior executives of Party C, at the request of Party A;

 

2.2.8                              If Party received any profit distribution, interest, dividend or proceeds of liquidation from Party C, Party B shall promptly donate all such profit distribution, interest, dividend or proceeds of liquidation to Party A or any other person designated by Party A in the manner permitted by the applicable PRC laws; and

 

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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 thereof.  To the extent that Party B has any remaining rights with respect to the equity interests subject to this Agreement hereunder or under the Party B’s Equity Interest Pledge Agreement or under the Party B’s Power of Attorney, 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 effective date of this Agreement and each date of the transfer of the Optioned Interests, that:

 

3.1                     They have the power, capacity and authority to execute and deliver this Agreement and any equity interest transfer contracts to which they are parties concerning each transfer of the Optioned Interests as described thereunder (each, a “Transfer Contract”), 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.  Upon the effectiveness of this Agreement and execution of the Transfer Contracts to which they are parties, this Agreement and such Transfer Contracts shall constitute or will constitute their legal, valid and binding obligations and shall be enforceable against them in accordance with the provisions thereof;

 

3.2                     Party B and Party C have obtained any and all approvals and consents from the competent government authorities and third parties (if required) for the execution, delivery and performance of this Agreement.

 

3.3                     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;

 

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3.4                     Party B has the good and saleable title to the equity interests held by it in Party C.  Except for Party B’s Equity Interest Pledge Agreement and Party B’s Power of Attorney, Party B has not placed any security interest on such equity interests;

 

3.5                     Party C has the good and saleable title to all of the assets, and has not placed any security interest on the aforementioned assets;

 

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

 

3.7                     Party C has complied with all PRC laws and regulations in asset acquisition; and

 

3.8                     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 and Term

 

This Agreement shall become effective upon execution by the Parties, and remain effective until all equity interests held by Party B in Party C have been transferred or assigned to Party A and/or any other person designated by Party A in accordance with this Agreement.

 

5.                  Governing Law and Resolution of Disputes

 

5.1       Governing Law

 

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

 

5.2       Methods of Resolution of Disputes

 

In the event of any dispute with respect to the interpretation and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations.  If the dispute remains unresolved within 30 days after one Party issues a written notice calling for resolution to the other, either Party may submit the relevant dispute to the Shanghai International Economic and Trade Arbitration Commission for arbitration, in accordance with the arbitration rules of such arbitration commission effective at that time.  The place of the hearing of the arbitration shall be Shanghai.  The arbitration award shall be final and binding on both Parties.

 

7

 

6.                  Taxes and Fees

 

Each Party shall pay any and all transfer and registration taxes, 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 to be given pursuant to this Agreement or otherwise given in connection with this Agreement shall be delivered personally, or sent by registered mail, prepaid postage, a commercial courier service, facsimile transmission or email to the address of such Party set forth below.  Each notice shall also be emailed again.  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, courier service, registered mail or prepaid postage shall be deemed effectively given on the date of receipt or refusal at the address set forth as notice address;

 

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:
    	
Yanhua Network Technology (Shanghai) Co., Ltd.
    
	
Address:
    	
Room 1301, Xin Changzheng Central Building, No.1219   Zhenguang Road, Putuo District, Shanghai
    
	
Attn:
    	
Hao Wang
    
	
Tel:
    	
021-80129001
    
	
Fax:
    	
021-80129003
    
	
 
    	
 
    
	
Party B:
    	
Min Xiahou
    
	
Address:
    	
3rd Floor, CSSD Building, No. 158 Wangdun Road,   Suzhou Industrial Park
    
	
Attn:
    	
Min Xiahou
    
	
Tel:
    	
(512)6288 5565 8000
    
	
 
    	
 
    
	
Party C:
    	
Shanghai Youying E-commerce Co., Ltd.
    
	
Address:
    	
Room 1301, Xin Changzheng Central Building, No.1219   Zhenguang Road, Putuo District, Shanghai
    
	
Attn:
    	
Hao Wang
    
	
Tel:
    	
021-80129001
    
	
Fax:
    	
021-80129003
    

 

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 of this Section.

 

8

 

8.                  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 other Parties, 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, directors, employees, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, directors, employees, 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 shareholders, director, employees of, or agencies engaged by any Party shall be deemed disclosure of such confidential information by such Party and such Party shall be held liable for breach of this Agreement.

 

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.           Breach of Agreement

 

10.1             If Party B or Party C materially breaches any provision under this Agreement, Party A is entitled to terminate this Agreement and/or require Party B or Party C to compensate Party A’s losses.  This Section 10 shall not prejudice any other rights of Party A under this Agreement.

 

10.2              Party B or Party C shall not terminate this Agreement unilaterally in any event unless otherwise required by the applicable laws.

 

11.           Miscellaneous

 

11.1     Amendments, changes and supplements

 

Any amendment, change and supplement to this Agreement shall be made in writing by all of the Parties.

 

11.2     Entire agreement

 

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

 

9

 

11.3     Headings

 

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

 

11.4     Language

 

This Agreement is written in Chinese in three copies, each Party having one copy.

 

11.5     Severability

 

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

 

11.6     Successors

 

The terms of this Agreement shall be binding and valid to the respective successors and permitted assigns of the Parties.

 

11.7     Survival

 

11.7.1    Any obligations that occurred or that are due in connection with this Agreement before the expiration or early termination of this Agreement shall survive the expiration or early termination thereof.

 

11.7.2    The provisions of Sections 5, 8, 10 and this Section 11.7 shall survive the termination of this Agreement.

 

11.8     Waivers

 

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

 

[The Remainder of this page is intentionally left blank]

 

10

 

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

 

	
 
    	
 
    	
 
    
	
Party A:
    	
Yanhua Network Technology (Shanghai) Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
Minghua Zhao
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party   B:
    	
Min   Xiahou
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party C:
    	
Shanghai Youying E-commerce Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
Min Xiahou
    	
 
    
	
Title:
    	
Legal Representative

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