Document:

exv4w37

    Exhibit 4.37

 

    EQUITY
    PLEDGE AGREEMENT

 

    This Equity Pledge Agreement (this “Agreement”) is
    entered into in Beijing, PRC by the following parties:

 

    Pledgee:

 

	 	 	 
	

    Party A:

	
 
	
    Baidu Online Network Technology (Beijing) Co., Ltd.

	
 
	
 
	
    Legal Address:
    12/F., Ideal
    International Plaza, No. 58 

    North-West 4th Ring, Haidian District, Beijing,

    PRC, 100080

	

    Pledgor:

	
 
	
 

	

    Party B:

	
 
	
    Hu Cai

	
 
	
 
	
    ID card No.: 320106197212162416

 

    WHEREAS,

 

    1. Party A (the “Pledgee”), a wholly
    foreign-owned enterprise registered in Beijing, the
    People’s Republic of China (the “PRC”), has been
    licensed by the relevant PRC government authorities to carry on
    the business of developing and manufacturing computer programs,
    providing technical consulting and services for self-made
    products, constructing computer network systems, selling
    self-made products (except for items that have not obtained
    specified approvals).

 

    2. Party B (the “Pledgor”), is a citizen of the
    PRC. The Pledgor owns 9% of the equity interest in Beijing
    BaiduPay Science and Technology Co., Ltd., a limited liability
    company registered in Beijing, PRC (the “Company”).

 

    3. Party A made a loan in an amount of RMB 9,000,000
    (hereinafter the “Loan”) to Party B and the parties
    executed a loan agreement (the “Loan Agreement”) on
    [Date].  The term of the Loan is 10 years
    commencing from the execution date of the Loan Agreement.

 

    4. In order to ensure that Party B will perform its
    obligations under the Loan Agreement, the Pledgor agrees to
    pledge all his equity interest in the Company as security for
    the performance of his obligations under the Loan Agreement.

 

    NOW THEREFORE, the Pledgee and the Pledgor through
    friendly negotiations hereby enter into this Agreement based
    upon the following terms:

 

    1. Definitions and Interpretation

 

    Unless otherwise provided in this Agreement, the following terms
    shall have the following meanings:

 

    1.1 “Pledge”:  refers to the
    full content of Article 2 hereunder.

 

    1.2 “Equity Interest”:  refers
    to all of the equity interest in the Company legally held by the
    Pledgor.

 

    1.3 “Rate of Pledge”:  refers to
    the ratio between the value of the Pledge under this Agreement
    and the total amount of the Loan.

 

    1.4 “Term of Pledge”:  refers to
    the period provided for under Article 3.2 hereunder.

 

    1.5 “Principal
    Agreement”:  refers to the Loan Agreement.

 

    1.6 “Event of Default”:  refers
    to any event listed in Article 7.1 hereunder.

 

    1.7 “Notice of Default”:  refers
    to the notice of default issued by the Pledgee in accordance
    with this Agreement.

 

 

    2. Pledge

 

    The Pledgor agrees to pledge his Equity Interest in the Company
    to the Pledgee as security for his obligations under the Loan
    Agreement. The term “Pledge” under this Agreement
    refers to the right of the Pledgee to be entitled to priority in
    receiving payment in the form of the Equity Interest based on
    the conversion value thereof, or from the proceeds from the
    auction or sale of the Equity Interest pledged by the Pledgor to
    the Pledgee.

 

    3. Rate of Pledge and Term of Pledge

 

    3.1 The rate of the Pledge

 

    The rate of the Pledge shall be approximately 100%.

 

    3.2 The term of the Pledge

 

    3.2.1 The Pledge shall take effect as of the date when the
    pledge of the Equity Interest is recorded in the Register of
    Shareholders of the Company and shall remain in effect until two
    (2) years after the obligations under the Principal
    Agreement will have been fulfilled. The parties agree that, if
    situations allow, they will use their best efforts to register
    the Pledge with the Administration for Industry and Commerce at
    the place of registration of the Company. However, the parties
    confirm that the effectiveness of this Agreement is not subject
    to the registration unless the laws and regulations of the PRC
    provide otherwise.

 

    3.2.2 During the term of the Pledge, the Pledgee shall be
    entitled to dispose of the pledged assets in accordance with
    this Agreement in the event that the Pledgor does not perform
    his obligations under the Loan Agreement.

 

    4. Physical Possession of Documents

 

    4.1 During the term of the Pledge under this Agreement, the
    Pledgor shall deliver the physical possession of his Certificate
    of Capital Contribution and the Register of Shareholders of the
    Company to the Pledgee within one (1) week from the
    execution date of this Agreement.

 

    4.2 The Pledgee shall be entitled to collect the dividends
    for the Equity Interest.

 

    4.3 The Pledge under this Agreement will be recorded in the
    Register of Shareholders of the Company.

 

    5. Representation and Warranty of the Pledgor

 

    5.1 The Pledgor is the legal owner of the Equity Interest
    pledged.

 

    5.2 Except for the benefit of the Pledgee, the Pledgor has
    not pledged the Equity Interest or created other encumbrance on
    the Equity Interest.

 

    6. Covenants of the Pledgor

 

    6.1 During the effective term of this Agreement, the
    Pledgor covenants to the Pledgee for its benefit that the
    Pledgor shall:

 

    6.1.1 Not transfer or assign the Equity Interest, create or
    permit the existence of any other pledges which may have an
    adverse effect on the rights or benefits of the Pledgee without
    prior written consent of the Pledgee;

 

    6.1.2 Comply with laws and regulations with respect to the
    pledge of rights; present to the Pledgee the notices, orders or
    suggestions with respect to the Pledge issued or made by
    relevant government authorities within five (5) days upon
    receiving such notices, orders or suggestions; comply with such
    notices, orders or suggestions or, alternatively, at the
    reasonable request of the Pledgee or with consent from the
    Pledgee, raise objection to such notices, orders or suggestions;

 

    6.1.3 Timely notify the Pledgee of any events or any
    notices received which may affect the Pledgor’s right to
    all or any part of the Equity Interest, and any events or any
    received notices which may change the Pledgor’s warranties
    and obligations under this Agreement or affect the
    Pledgor’s performance of its obligations under this
    Agreement.

    

    2

 

 

    6.2 The Pledgor agrees that the Pledgee’s right to the
    Pledge obtained from this Agreement shall not be suspended or
    inhibited by any legal procedure initiated by the Pledgor or any
    successors of the Pledgor or any person authorized by the
    Pledgor or any other person.

 

    6.3 The Pledgor promises to the Pledgee that in order to
    protect or perfect the security for the payment of the Loan, the
    Pledgor shall execute in good faith and cause other parties who
    have interests in the Pledge to execute, all title certificates
    and contracts or to perform any other actions (and cause other
    parties who have interests to take action) as required by the
    Pledgee and make access to exercise the rights and authorization
    vested in the Pledgee under this Agreement.

 

    6.4 The Pledgor promises to the Pledgee that
    he/she will
    execute all amendment documents (if applicable and necessary) in
    connection with the certificate of the Equity Interest with the
    Pledgee or its designated person (being a natural person or a
    legal entity) and, within a reasonable period, provide to the
    Pledgee all notices, orders and decisions about the Pledge as
    the Pledgee deems necessary.

 

    6.5 The Pledgor promises to the Pledgee that
    he/she will
    comply with and perform all the guarantees, covenants,
    warranties, representations and conditions for the benefit of
    the Pledgee. The Pledgor shall compensate the Pledgee for all
    losses suffered by the Pledgee because of the Pledgor’s
    failure to perform in whole or in part its guarantees,
    covenants, warranties, representations and conditions.

 

    7. Event of Default

 

    7.1 The following events shall be regarded as events of
    default:

 

    7.1.1 Pledgor fails to perform his obligations under the
    Loan Agreement;

 

    7.1.2 Any representation or warranty made by the Pledgor in
    Article 5 hereof contains material misleading statements or
    errors
    and/or the
    Pledgor breaches any warranty in Article 5 hereof;

 

    7.1.3 The Pledgor breaches the covenants under
    Article 6 hereof;

 

    7.1.4 The Pledgor breaches another provision of this
    Agreement;

 

    7.1.5 The Pledgor waives the pledged Equity Interest or
    transfers or assigns the pledged Equity Interest without prior
    written consent from the Pledgee;

 

    7.1.6 Any of the Pledgor’s external loans, guaranties,
    compensations, undertakings or other obligations (1) is
    required to be repaid or performed prior to the scheduled due
    date because of a default; or (2) is due but cannot be
    repaid or performed as scheduled, causing the Pledgee to believe
    that the Pledgor’s ability to perform the obligations
    hereunder has been affected;

 

    7.1.7 The Company is incapable of repaying its general
    debts or other debts;

 

    7.1.8 This Agreement becomes illegal or the Pledgor is not
    capable of continuing to perform the obligations hereunder due
    to any reason other than force majeure;

 

    7.1.9 There have been adverse changes to the properties
    owned by the Pledgor, causing the Pledgee to believe that the
    capability of the Pledgor to perform the obligations hereunder
    has been affected;

 

    7.1.10 The breach of the other provisions of this Agreement
    by the Pledgor due to his act or omission.

 

    7.2 The Pledgor shall immediately give a written notice to
    the Pledgee if the Pledgor knows or discovers that any event
    specified under Article 7.1 hereof or any event that may
    result in the foregoing events has occurred.

 

    7.3 Unless an event of default under Article 7.1
    hereof has been solved to the Pledgee’s satisfaction, the
    Pledgee, at any time when the event of default occurs or at
    anytime thereafter, may give a written notice of default to the
    Pledgor, requiring the Pledgor to immediately make full payment
    of the outstanding amount under the Loan Agreement or requesting
    to exercise the Pledge in accordance with Article 8 hereof.

    

    3

 

 

    8. Exercise of the Pledge

 

    8.1 The Pledgor shall not transfer or assign the Equity
    Interest without prior written approval from the Pledgee prior
    to the full performance of his obligations under the Loan
    Agreement.

 

    8.2 The Pledgee shall give a notice of default to the
    Pledgor when the Pledgee exercises the Pledge.

 

    8.3 Subject to Article 7.3, the Pledgee may exercise
    the Pledge when the Pledgee gives a notice of default in
    accordance with Article 7.3 or at anytime thereafter.

 

    8.4 The Pledgee is entitled to priority in receiving
    payment in the form of all or part of the Equity Interest based
    on the conversion value thereof, or from the proceeds from the
    auction or sale of all or part of the Equity Interest in
    accordance with legal procedure, until the outstanding debt and
    all other payables of the Pledgor under Loan Agreement are
    repaid.

 

    8.5 The Pledgor shall not hinder the Pledgee from
    exercising the Pledge in accordance with this Agreement and
    shall give necessary assistance so that the Pledgee could fully
    exercise its Pledge.

 

    9. Assignment

 

    9.1 The Pledgor shall not assign or transfer its rights and
    obligations hereunder without prior consent from the Pledgee.

 

    9.2 This Agreement shall be binding upon the Pledgor and
    his successors and be binding on the Pledgee and each of its
    successors and permitted assigns.

 

    9.3 To the extent permitted by law, the Pledgee may
    transfer or assign any or all of its rights and obligations
    under the Loan Agreement to any person (natural person or legal
    entity) designated by it at any time. In that case, the assignee
    shall have the same rights and obligations as those of the
    Pledgee as if the assignee was an original party hereto. When
    the Pledgee transfers or assigns the rights and obligations
    under the Loan Agreement, it is only required to provide a
    written notice to the Pledgor, and at the request of the
    Pledgee, the Pledgor shall execute the relevant agreements
    and/or
    documents with respect to such transfer or assignment.

 

    9.4 After the Pledgee has been changed as a result of a
    transfer or an assignment, the new parties to the Pledge shall
    execute a new pledge contract.

 

    10. Effectiveness and Term

 

    This Agreement is effective as of the date first set forth above
    and from the date when the pledge is recorded on the
    Company’s Register of Shareholders.

 

    11. Termination

 

    This Agreement shall terminate when the loan under the Loan
    Agreement has been fully repaid and the Pledgor no longer has
    any outstanding obligations under the Loan Agreement.
    Thereafter, the Pledgee shall cancel or terminate this Agreement
    as soon as reasonably practicable.

 

    12. Fees and Other Charges

 

    12.1 The Pledgor shall be responsible for all of the fees
    and actual expenses in relation to this Agreement including, but
    not limited to, legal fees, production costs, stamp tax and any
    other taxes and charges. If the Pledgee pays the relevant taxes
    in accordance with the laws, the Pledgor shall fully indemnify
    the Pledgee for such taxes paid by the Pledgee.

 

    12.2 In the event that the Pledgee has to make a claim
    against the Pledgor by any means as a result of the
    Pledgor’s failure to pay any tax or expense payable by the
    Pledgor under this Agreement, the Pledgor shall be responsible
    for all the expenses arising from such claim (including but not
    limited to any taxes, handling fees, management fees, litigation
    fees, attorney’s fees, and various insurance premiums in
    connection with the disposition of the Pledge).

    

    4

 

 

    13. Force Majeure

 

    13.1 Force Majeure, which includes but is not limited to
    acts of governments, acts of nature, fires, explosions,
    typhoons, floods, earthquake, tides, lightning or war, refers to
    any unforeseen event that is beyond a party’s reasonable
    control and cannot be prevented with reasonable care. However,
    any insufficiency of creditworthiness, capital or financing
    shall not be regarded as an event beyond a party’s
    reasonable control. The affected party by Force Majeure shall
    promptly notify the other party of such event resulting in
    exemption.

 

    13.2 In the event that the affected party is delayed or
    prevented from performing its obligations under this Agreement
    by Force Majeure, and only to the extent of such delay and
    prevention, the affected party shall not be liable for
    obligations under this Agreement. The affected party shall take
    appropriate measures to minimize or remove the effects of Force
    Majeure and attempt to resume performance of the obligations
    that were delayed or prevented by the event of Force Majeure.
    After the event of Force Majeure is removed, both parties agree
    to resume the performance of this Agreement using their best
    efforts.

 

    14. Confidentiality

 

    The parties to this Agreement acknowledge and confirm that all
    the oral and written materials exchanged relating to this
    Agreement are confidential. Each party must keep such materials
    confidential and can not disclose such materials to any other
    third party without the other party’s prior written
    approval, unless: (a) the public knows or will know the
    materials (not due of the disclosure by the receiving party);
    (b) the disclosed materials are required by law or stock
    exchange rules to be disclosed; or (c) materials relating
    to the transactions under this Agreement are disclosed to the
    parties’ legal or financial advisors, who must keep them
    confidential as well. Disclosure of the confidential information
    by employees or institutions hired by the parties is deemed as
    an act by the parties, therefore, subjecting them to liability.

 

    15. Dispute Resolution

 

    15.1 This Agreement shall be governed by and construed in
    accordance with PRC law.

 

    15.2 The parties shall strive to settle any dispute arising
    from the interpretation or performance of this Agreement through
    friendly consultation. In case no settlement can be reached
    through consultation, each party can submit such matter to the
    China International Economic and Trade Arbitration Commission
    (“CIETAC”) for arbitration. The arbitration shall
    follow the current rules of CIETAC, the arbitration proceedings
    shall be conducted in Chinese and shall take place in Beijing,
    PRC. The arbitration award shall be final and binding upon the
    parties.

 

    16. Notice

 

    Any notice which is given by the parties hereto for the purpose
    of performing the rights and obligations hereunder shall be in
    writing. Where such notice is delivered personally, the time of
    notice is the time when such notice actually reaches the
    addressee; where such notice is transmitted by telex or
    facsimile, the notice time is the time when such notice is
    transmitted. If such notice does not reach the addressee on a
    business day or reaches the addressee after business hours, the
    next business day following such day is the date of notice. The
    delivery place is the address first written above for each of
    the parties hereto or the address advised by such party in
    writing, including facsimile and telex, from time to time.

 

    17. Entire Contract

 

    Notwithstanding Article 10, the parties agree that this
    Agreement constitutes the entire agreement of the parties hereto
    with respect to the subject matters herein upon its
    effectiveness and supersedes and replaces all prior oral
    and/or
    written agreements and understandings relating to the subject
    matters of this Agreement.

 

    18. Severability

 

    Should any provision of this Agreement be held invalid or
    unenforceable because of inconsistency with applicable laws,
    such provision shall be invalid or unenforceable only to the
    extent of such applicable laws without affecting the validity or
    enforceability of the remainder of this Agreement.

    

    5

 

 

    19. Appendices

 

    The appendices to this Agreement shall constitute an integral
    part of this Agreement.

 

    20. Amendment or Supplement

 

    20.1 The parties may amend or supplement this Agreement by
    written agreement. The amendments or supplements to this
    Agreement duly executed by both parties shall form an integral
    part of this Agreement and shall have the same legal effect as
    this Agreement.

 

    20.2 This Agreement and any amendments, modifications,
    supplements, additions or changes hereto shall be in writing and
    shall be effective upon being executed and sealed by the parties
    hereto.

 

    21. Counterparts

 

    This Agreement is executed in Chinese in duplicate, with each
    party hereto holding one copy. Both originals have the same
    legal effect.

    

    6

 

    [Signature Page]

 

    Pledgee: Baidu Online Network Technology (Beijing) Co.,
    Ltd.

 

		
	    Legal Representative/Authorized Representative: 	
    /s/  Haoyu
    Shen

 

    Seal: [Baidu Online Network Technology (Beijing) Co., Ltd. seal]

 

    Pledgor: Hu Cai

 

		
	    Signature: 	
    /s/  Hu
    Cai

 

    Beijing BaiduPay Science and Technology Co., Ltd.

 

		
	    Legal Representative/Authorized Representative: 	
    /s/  Hu
    Cai

 

    Seal: [Beijing BaiduPay Science and Technology Co., Ltd. seal]

    

    7exv4w38

    Exhibit 4.38

 

    EXCLUSIVE
    EQUITY PURCHASE OPTION AGREEMENT

 

    This Exclusive Equity Purchase Option Agreement (this
    “Agreement”) is entered into among the following
    parties in Beijing, PRC:

 

	 	 	 
	

    Party A:

	
 
	
    Baidu Online Network Technology (Beijing) Co., Ltd.

	

    Legal Address:

	
 
	
    12/F., Ideal
    International Plaza, No. 58 North-West 4th Ring,
    Haidian District, Beijing, PRC, 100080

	

    Party B:

	
 
	
    Hu Cai

	

    ID Number:

	
 
	
    320106198212162416

	

    Party C:

	
 
	
    Beijing BaiduPay Science and Technology Co., Ltd.

	

    Legal Address:

	
 
	
    Room 301, 3/F, Block D, Jia No. 18 Zhongguancun South
    Street, Haidian District, Beijing, PRC, 100081

 

    In this Agreement, Party A, Party B and Party C are called
    collectively as the “Parties” and each of them is a
    “Party.”

 

    WHEREAS:

 

    1. Party A, is a wholly foreign-owned enterprise
    incorporated under the laws of the People’s Republic of
    China (the “PRC”), which has technology expertise and
    practical experience in computer software development and
    design, and also has rich experience and expertise in
    information technology and service;

 

    2. Party C, a liability limited company incorporated in the
    PRC, is licensed by is licensed by Beijing Communications
    Administration to carry out the business of value-added
    telecommunication services such as Internet information services;

 

    3. Party B is the shareholder of Party C. Party B has
    ownership of 9 % of the equity interest in Party C (the
    “Equity Interest”);

 

    4. Party A and Party B entered into a loan agreement (the
    “Loan Agreement”) on April 28, 2009; and

 

    5. Party A and Party B entered into an equity pledge
    agreement (the “Equity Pledge Agreement”) on
    [Date].

 

    NOW, THEREFORE, the Parties upon negotiation hereby agree
    as follows:

 

    1. Purchase and Sale of Equity Interest

 

    1.1 Granting of Rights

 

    Party B (hereafter, the “Transferor”) hereby
    irrevocably grants to Party A an option to purchase or cause any
    one or more designated persons (“Designated Persons”)
    to purchase, to the extent permitted under PRC law, according to
    the steps determined by Party A, at the price specified in
    Section 1.3 of this Agreement, and at any time from the
    Transferor, a portion of, or all of, the equity interests held
    by the Transferor in Party C (the “Option”).

 

    No Option shall be granted to any third party other than Party A
    and/or the
    Designated Persons. Party C hereby agrees to the granting of the
    Option by Party B to Party A
    and/or the
    Designated Persons. The “person” set forth in this
    clause and this Agreement means an individual person,
    corporation, joint venture, partnership, enterprise, trust or a
    non-corporation organization.

 

    1.2 Exercise Steps

 

    Subject to PRC law and regulations, Party A
    and/or the
    Designated Persons may exercise the Option by issuing a written
    notice (the “Notice”) to the Transferor, specifying
    the equity interest to be purchased from the Transferor (the
    “Purchased Equity Interest”) and the manner of such
    purchase.

 

 

    1.3 Purchase Price

 

    1.3.1 If Party A exercises the Option, the purchase price
    of the Purchased Equity Interest (“Purchase Price”)
    shall be equal to the original paid-in capital paid by the
    Transferor for the Purchased Equity Interest, unless then
    applicable PRC laws and regulations require appraisal of the
    Purchased Equity Interest or stipulate other restrictions on the
    Purchase price.

 

    1.3.2 If the applicable PRC laws require appraisal of the
    Purchased Equity Interest or stipulate other restrictions on the
    Purchase Price at the time that Party A exercises the Option,
    the Parties agree that the Purchase Price shall be set at the
    lowest price permissible under applicable law.

 

    1.4 Transfer of the Purchased Equity Interest

 

    At each exercise of the Option:

 

    1.4.1 The Transferor shall cause Party C to convene a
    shareholders’ meeting. During the meeting, resolutions
    approving the transfer of the Equity Interest from the
    Transferor to Party A
    and/or the
    Designated Persons shall be adopted;

 

    1.4.2 The Transferor shall, in accordance the terms and
    conditions of this Agreement and the Notice in connection with
    the Purchased Equity Interest, enter into an equity transfer
    agreement with Party A
    and/or the
    Designated Persons (as applicable) for each transfer;

 

    1.4.3 The related parties shall execute all other requisite
    contracts, agreements or documents, obtain all requisite
    government approvals and consents, and take all necessary
    actions to transfer the valid ownership of the Purchased Equity
    Interest to Party A
    and/or the
    Designated Persons free of any security interest, and cause
    Party A
    and/or the
    Designated Persons to be the registered owner(s) of the
    Purchased Equity Interest. In this clause and this Agreement,
    “Security Interest” means guaranty, mortgage, pledge,
    third-party right or interest, any share option, right of
    acquisition, right of first refusal, right of set-off,
    ownership, detainment or other security arrangements. However,
    it does not include any security interest arising under the
    Equity Pledge Agreement.

 

    1.5 Payment

 

    The manner of payment of the Purchase Price shall be determined
    through negotiations between Party A
    and/or the
    Designated Persons and the Transferor according to the
    applicable laws at the time of the exercise of the Option. The
    Parties hereby agree that, subject to applicable laws,
    Transferor shall repay to Party A any amount that is paid by
    Party A
    and/or the
    Designated Persons to the Transferor in connection with the
    Purchased Equity Interest, as the repayment of the loan
    principal under the Loan Agreement, as well as legally permitted
    interests or capital.

 

    2. Covenants Relating to the Equity Interest

 

    2.1 Covenants Relating to Party C

 

    Party B and Party C hereby covenant:

 

    2.1.1 Not to supplement, amend or modify Party C’s
    articles of association in any way, or to increase or decrease
    its registered capital, or to change its registered capital
    structure in any way without Party A’s prior written
    consent;

 

    2.1.2 To maintain the corporate existence of Party C and
    operate its business and deal with matters prudently and
    effectively according to good financial and business rules and
    practices;

 

    2.1.3 Not to sell, transfer, mortgage or otherwise dispose
    of, or permit any other security interest to be created on, any
    of Party C’s assets, business or legal or beneficial
    interests in its revenue at any time after the signing of this
    Agreement without Party A’s prior written consent;

 

    2.1.4 Not to create, succeed to, guarantee or permit any
    liability, without Party A’s prior written consent, except
    (i) liabilities arising from the normal course of business,
    but not arising from loans; and (ii) liabilities disclosed
    to Party A and approved by Party A in writing;

    

    2

 

 

    2.1.5 To operate persistently all the business in the
    normal course of business to maintain the value of Party
    C’s assets, and not to commit any act or omission that
    would affect its operations and asset value;

 

    2.1.6 Without prior written consent by Party A, not to
    enter into any material agreement, other than agreements entered
    into in Party C’s normal course of business (for purpose of
    this paragraph, an agreement will be deemed material if its
    value exceeds RMB[100,000]);

 

    2.1.7 Not to provide loans or credit to any person without
    Party A’s prior written consent;

 

    2.1.8 To provide all information relating to Party C’s
    operations and financial conditions upon the request of Party A;

 

    2.1.9 To purchase and maintain insurance from insurance
    companies accepted by Party A. The amount and category of the
    insurance shall the same as those of the insurance normally
    procured by companies engaged in similar businesses and
    possessing similar properties or assets in the area where Party
    C is located;

 

    2.1.10 Not to merge or consolidate with, or acquire or
    invest in, any person without Party A’s prior written
    consent;

 

    2.1.11 To promptly notify Party A of any pending or
    threatened suit, arbitration or administrative proceedings
    concerning Party C’s assets, business or revenue;

 

    2.1.12 To execute all necessary or appropriate documents,
    to take all necessary or appropriate actions and to bring all
    necessary or appropriate claims or to make all necessary and
    appropriate defenses against all claims in order for Party C to
    maintain the ownership over all its assets;

 

    2.1.13 Not to distribute dividends to Party C’s
    shareholders in any way without Party A’s prior written
    consent. However, Party C shall promptly distribute all or part
    of its distributable profits to its shareholders upon Party
    A’s request;

 

    2.1.14 At the request of Party A, to appoint persons
    nominated by Party A to be the directors of Party C;

 

    2.1.15 Dividends distributed by Party C and profits
    assigned by any other form shall be converged to Party A.

 

    2.2 Covenants Relating to the Transferor

 

    Party B hereby covenants:

 

    2.2.1 Not to sell, transfer, mortgage or otherwise dispose
    of, or allow any other security interest to be created on, the
    legal or beneficial interest in the Equity Interest at any time
    after the signing of this Agreement without Party A’s prior
    written consent, other than the pledge created on Party B’s
    Equity Interest in accordance with the Equity Pledge Agreement;

 

    2.2.2 Without Party A’s prior written consent, not to
    vote for or sign any shareholders’ resolution at Party
    C’s shareholders’ meetings to approve the sale,
    transfer, mortgage or disposition in any other manner of, or the
    creation of any other security interest on, any legal or
    beneficial interest in the Equity Interest, except to or for the
    benefit of Party A or its designated persons;

 

    2.2.3 Without Party A’s prior written consent, not to
    vote for or sign any shareholders’ resolution at Party
    C’s shareholders’ meetings to approve Party C’s
    merger or consolidation with, acquisition of or investment in,
    any person;

 

    2.2.4 To promptly notify Party A of any pending or
    threatened suit, arbitration or administrative proceedings
    concerning the Equity Interest owned by it;

 

    2.2.5 To cause the shareholders’ meeting to approve
    the transfer of the Purchased Equity Interest under this
    Agreement;

 

    2.2.6 To execute all necessary or appropriate documents, to
    take all necessary or appropriate actions and to bring all
    necessary or appropriate claims or to make all necessary and
    appropriate defenses against all claims in order to maintain his
    ownership over the Equity Interest;

    

    3

 

 

    2.2.7 At the request of Party A, to appoint persons
    nominated by Party A to be the directors of Party C;

 

    2.2.8 At any time, upon the request of Party A, to transfer
    its Equity Interest immediately and unconditionally to the
    representative designated by Party A, and waive its preemptive
    right with respect to the transfer of equity interest by the
    other shareholder of Party C;

 

    2.2.9 To fully comply with the provisions of this Agreement
    and the other agreements entered into jointly or respectively by
    and among the Transferor, Party C and Party A, perform all
    obligations under these agreements and not commit any act or
    omission that would affect the validity and enforceability of
    these agreements.

 

    2.3 Covenants Relating to Party A

 

    Party A hereby convenant:

 

    2.3.1 If Party C needs any loan or other capital support in
    its business, under acceptable and reasonable scope, Party A
    shall provide capital support;

 

    2.3.2 If Party C cannot repay the loan from Party A as loss
    incurred and has sufficient evidence to prove, Party A agrees
    that it shall give up the rights of requiring Party C to repay
    the laon.

 

    3. Representations and Warranties

 

    As of the execution date of this Agreement and every transfer
    date, each of the Transferor and Party C hereby represents and
    warrants to Party A as follows:

 

    3.1 It has the power and authority to execute and deliver
    this Agreement, and any equity transfer agreement
    (“Transfer Agreement”) to which it is party for each
    transfer of the Purchased Equity under this Agreement and to
    perform its obligations under this Agreement and any Transfer
    Agreement. Once executed, this Agreement and any Transfer
    Agreement to which it is party will constitute a legal, valid
    and binding obligation of it enforceable against it in
    accordance with its terms;

 

    3.2 The execution, delivery and performance of this
    Agreement or any Transfer Agreement by it will not:
    (i) violate any relevant PRC laws and regulations;
    (ii) conflict with its articles of association or other
    organizational documents; (iii) violate or constitute a
    default under any contract or instrument to which it is party or
    that binds upon it; (iv) violate any condition for the
    grant and/or
    continued effectiveness of any permit or approval granted to it;
    or (v) cause any permit or approval granted to it to be
    suspended, cancelled or attached with additional conditions;

 

    3.3 Party C has good and marketable ownership interest in
    all of its assets and has not created any security interest on
    the said assets;

 

    3.4 Party C has no outstanding liabilities, except
    (i) liabilities arising in its normal course of business;
    and (ii) liabilities disclosed to Party A and approved by
    Party A in writing;

 

    3.5 Party C complies with all PRC laws and regulations
    applicable to the acquisition of assets;

 

    3.6 There are currently no existing, pending or threatened
    litigation, arbitration or administrative proceedings related to
    the Equity Interest, Party C’s assets or Party C; and

 

    3.7 The Transferor has good and marketable ownership
    interest in the Equity Interest and has not created any security
    interest on such Equity Interest, other than the security
    interest pursuant to the Equity Pledge Agreement.

 

    4. Assignment of Agreement

 

    4.1 Party B and Party C shall not assign their rights and
    obligations under this Agreement to any third party without the
    prior written consent of Party A.

 

    4.2 Party B and Party C hereby agree that Party A may
    assign all its rights and obligation under this Agreement to a
    third party without the consent of Party B and Party C, but such
    assignment shall be notified in writing to Party B and Party C.

    

    4

 

 

    5. Effective Date and Term

 

    5.1 This Agreement shall be effective as of the date first
    set forth above.

 

    5.2 The term of this Agreement is ten (10) years
    unless terminated earlier in accordance with the provisions of
    this Agreement or related agreements entered into by the
    Parties. This Agreement may be extended with the written consent
    of Party A before its expiration. The term of the extension
    shall be decided by the Parties through negotiation.

 

    5.3 If the duration of operation (including any extension
    thereof) of Party A or Party C is expired or terminated for
    other reasons within the term set forth in Article 5.2, this
    Agreement shall be terminated simultaneously, except in the
    situation where Party A has assigned its rights and obligations
    in accordance with Article 4.2 hereof.

 

    6. Applicable Law and Dispute Resolution

 

    6.1 Applicable Law

 

    The formation, validity, interpretation and performance of and
    settlement of disputes under this Agreement shall be governed by
    the laws of the PRC.

 

    6.2 Dispute Resolution

 

    Any dispute arising in connection with the interpretation and
    performance of the provisions of this Agreement shall be
    resolved by the Parties in good faith through negotiations. In
    case no resolution can be reached by the Parties within thirty
    (30) days after either party makes a request for dispute
    resolution through negotiations, either party may refer such
    dispute to China International Economic and Trade Arbitration
    Commission (“CIETAC”) for arbitration in accordance
    with CIETAC’s arbitration rules then in effect. The seat of
    arbitration shall be Beijing and language of proceedings shall
    be Chinese. The arbitral award shall be final and binding upon
    the Parties.

 

    7. Taxes and Expenses

 

    Every Party shall, in accordance with PRC laws, bear any and all
    transfer and registration taxes, expenses and charges incurred
    by or levied on it with respect to the preparation and execution
    of this Agreement and each Transfer Agreement and the
    consummation of the transactions contemplated under this
    Agreement and each Transfer Agreement.

 

    8. Confidentiality

 

    The Parties acknowledge and confirm any oral or written
    materials exchanged by the Parties in connection with this
    Agreement are confidential. The Parties shall maintain the
    confidentiality of all such materials. Without the written
    approval by the other Parties, any Party shall not disclose to
    any third party any relevant materials, but the following
    circumstances shall be excluded:

 

    8.1 Materials that are or will become known by the public
    (through no fault of the receiving party);

 

    8.2 Materials required to be disclosed by the applicable
    laws or rules of the stock exchange;

 

    8.3 Materials disclosed by each Party to its legal or
    financial advisors relating the transactions contemplated by
    this Agreement, and such legal or financial advisors shall
    comply with the confidentiality provisions set forth in this
    Article 8. Any disclosure of confidential information by
    the personnel of any Party or by the institutions engaged by
    such Party shall be deemed as a disclosure by such Party, and
    such Party shall be liable for the breach under this Agreement.
    This Article 8 shall survive the invalidity, cancellation,
    termination or unenforceability of this Agreement for any reason.

 

    9. Further Assurances

 

    The Parties agree to promptly execute documents and take further
    actions that are reasonably required for, or beneficial to, the
    purpose of performing the provisions and carrying out the intent
    of this Agreement.

    

    5

 

 

    10. Miscellaneous

 

    10.1 Amendment, Modification or Supplement

 

    Any amendment or supplement to this Agreement shall be made by
    the Parties in writing. The amendments or supplements duly
    executed by each Party shall be deemed as a part of this
    Agreement and shall have the same legal effect as this Agreement.

 

    10.2 Entire Agreement

 

    Notwithstanding Article 5 of this Agreement, the Parties
    acknowledge that once this Agreement becomes effective, it shall
    constitute the entire agreement of the Parties with respect to
    the subject matters hereof and shall supersede all prior oral
    and/or
    written agreements and understandings by the Parties with
    respect to the subject matters hereof.

 

    10.3 Severability

 

    If any provision of this Agreement is judged to be invalid,
    illegal or unenforceable in any respect according to any
    applicable law or regulation, the validity, legality and
    enforceability of the other provisions hereof shall not be
    affected or impaired in any way. The Parties shall, through
    good-faith negotiations, replace those invalid, illegal or
    unenforceable provisions with valid provisions that may bring
    about economic effects as similar as possible to those from such
    invalid, illegal or unenforceable provisions.

 

    10.4 Headings

 

    The headings contained in this Agreement are for the convenience
    of reference only and shall not be used for the interpretation
    or explanation or otherwise affect the meaning of the provisions
    of this Agreement.

 

    10.5 Language and Copies

 

    This Agreement is executed in Chinese in three copies; each
    Party holds one copy and each copy has the same legal effect.

 

    10.6 Successor

 

    This Agreement shall bind upon and inure to the benefit of the
    successors and permitted assigns of each Party.

 

    10.7 Survival

 

    Any obligation arising from or becoming due under this Agreement
    before its expiration or premature termination shall survive
    such expiration or premature termination. Articles 6, 8 and
    9 and this Section 11.7 shall survive the termination of
    this Agreement.

 

    10.8 Waiver

 

    Any Party may waive the terms and conditions of this Agreement
    by a written instrument signed by the Parties. Any waiver by a
    Party to a breach by the other Parties in a specific situation
    shall not be construed as a waiver to any similar breach by the
    other Parties in other situations.

 

    IN WITNESS WHEREOF, each Party has caused this Agreement
    to be executed by himself/herself, its legal representative or
    its duly authorized representative as of the date first written
    above.

    

    6

 

    [Signature Page]

 

    Party A: Baidu Online Network Technology (Beijing) Co.,
    Ltd.

 

		
	    Legal Representative/Authorized Representative:  	
    /s/  Haoyu
    Shen

 

    Seal: [Baidu Online Network Technology (Beijing) Co., Ltd. seal]

 

    Party B: Hu Cai

 

		
	    Signature:  	
    /s/  Hu
    Cai

 

    Party C: Beijing BaiduPay Science and Technology Co., Ltd.

 

		
	    Legal Representative/Authorized Representative:  	
    /s/  Hu
    Cai

 

    Seal: [Beijing BaiduPay Science and Technology Co., Ltd. seal]

    

    7

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