Document:

Exhibit 10.22

 

English Translation

 

SUPPLEMENTARY AGREEMENT

 

 

THIS SUPPLEMENTARY AGREEMENT  is entered into by and among the following parties on December 30, 2010 in Guangzhou:

 

(1)   Guangzhou Yingzheng Information Technology Co., Ltd. (“Yingzheng”)

 

Contact person: Wang Yongchao

 

(2)   Party B: Guangzhou Yitongtianxia Software Development Co., Ltd. (“Yitong”)

 

Contact person: Liu Xieshu

 

(3) Wang Yongchao, citizen of the People’s Republic of China (“China”), identity card no.:         ;

 

(4) Zheng Feng, a citizen of China, identity card no.:         ;

 

(5) Liang De, a citizen of China, identity card no.:         ;

 

The Parties indicated in Item (3) through Item (5) above are collectively referred to as “Party C”; and the Parties in Item (1) through Item (5) above are collectively referred to as “Parties”.

 

WHEREAS,

 

1.              Party A, Party B, Party C and Shi Haiyan (Chinese citizen, identity card no.:         ) signed a Voting Proxy Agreement in Guangzhou on October 28, 2009.

 

2.              Shi Haiyan has transferred 12% shares of Yingzheng held by her to Wang Yongchao, and all rights and obligations of Shi Haiyan under the Voting Proxy Agreement are succeeded by Wang Yongchao.

 

The Parties hereby enter into the following terms and conditions supplementary to the Voting Proxy Agreement based on the principles of mutual benefit, mutual development, equality and free will, and after friendly negotiation of the Parties.

 

1. ADMINISTRATION EXPENSES

 

In accordance with the Voting Proxy Agreement, Party A’s shareholders delegate Yitong to administer and manage the business operations of Yingzheng.

 

It is agreed that, in consideration of the business management service provided by Yitong, Yingzheng shall pay an annual management fee to Yitong according to the following terms and conditions:

 

The total amount of the annual management fee shall be calculated according to the following formula: Annual management fee = Annual revenue of Yingzheng – Actual Operating Cost of Yingzheng – Other Costs Confirmed by Yingzheng (including but not limited to the annual technical service fee) – Total Taxes Paid by Yingzheng in the Year.

 

The total amount payable in the year shall be finally decided by Yitong depending on the business status of Yingzheng.

 

2. ADMINISTRATION SCOPE

 

In accordance with the Voting Proxy Agreement, Party A’s shareholders shall also authorize Yitong to operate and manage all assets and liabilities of Yingzheng existing upon execution of the Voting Proxy 

 

1

 

Agreement.

 

It is agreed that, in consideration of the operation and management service provided by Yitong regarding such assets and liabilities, Yitong shall also have the right to receive a management fee in respect of the net assets of Yingzheng existing upon execution of the Voting Proxy Agreement. The total amount of the management fee payable by Yingzheng shall be finally decided by Yitong depending on the development of Yingzheng.

 

3. LIABILITIES FOR BREACH OF CONTRACT

 

1.              During the term of the Voting Proxy Agreement, if Party A or Party C fails to perform any obligation under the Voting Proxy Agreement, it/he/she shall pay to Party B the liquidated damages of RMB20 million. If Party B suffers damages and losses exceeding the liquidated damages due to such breach, it/he/she shall indemnify Party B against such damages and losses.

 

2.              Party A and Party C shall be jointly and severally liable for the liabilities for breach of contract mentioned above.

 

4. MISCELLANEOUS

 

1.              This Supplementary Agreement is made and executed in five counterparts, and shall become effective as of being duly signed and sealed. Each counterpart of this Supplementary Agreement shall have the same legal force.

 

2.              This Supplementary Agreement shall have the same legal effect as the Voting Proxy Agreement. In case of any conflict, this Supplementary Agreement shall prevail.

 

2

 

	
Guangzhou Yingzheng Information Technology   Co., Ltd. (Company Seal) (affixed with company seal)
    

 

	
Legal Representative or Authorized   Representative:
    	
/s/ Wang Yongchao
    	
 
    

 

	
 
    
	
Guangzhou Yitongtianxia Software   Development Co., Ltd. (Company Seal) (affixed with company seal)
    

 

	
Legal Representative or Authorized   Representative:
    	
/s/ Wang Yongchao
    	
 
    

 

	
Wang Yongchao:
    	
/s/ Wang Yongchao
    	
 
    

 

	
Zheng Feng:
    	
/s/ Zheng Feng
    	
 
    

 

	
Liang De:
    	
/s/ Liang De
    	
 
    

 

3Exhibit 10.23

 

English Translation

 

 

OPTION AGREEMENT

 

 

AMONG

 

GUANGZHOU YITONGTIANXIA SOFTWARE DEVELOPMENT CO., LTD.

 

AND

 

WANG YONGCHAO, SHI HAIYAN, LIANG DE, ZHENG FENG

 

 

EXECUTED IN GUANGZHOU ON OCTOBER 28, 2009

 

 

OPTION AGREEMENT

 

THIS OPTION AGREEMENT (“this Agreement”) is entered in to on the 28th day of October, 2009, by and among the following parties (“Parties”):

 

Guangzhou Yitongtianxia Software Development Co., Ltd. (“Pledgee” or “Obligee”), a wholly foreign owned enterprise duly organized and existing under the laws of the People’s Republic of China (“China”), with its registered address at No.1-6 (Self-numbered), 1501, No.233, Tianfu Road, Tianhe District, Guangzhou;

 

Wang Yongchao, a citizen of China, identity card no.:               ;

 

Shi Haiyan, a citizen of China, identity card no.:               ;

 

Liang De, a citizen of China, identity card no.:               ; and

 

Zheng Feng, a citizen of China, identity card no.:               .

 

Wang Yongchao, Shi Haiyan, Liang De and Zheng Feng are collectively referred to as “Obligors”.

 

WHEREAS,

 

1.              Guangzhou Yingzheng Information Technology Co., Ltd. (“Guangzhou Yingzheng”) is a company with limited liability duly incorporated under the laws of China;

 

2.              The Obligors are the shareholders of Guangzhou Yingzheng and they lawfully hold 100% of the shares of Guangzhou Yingzheng in total (“Shares”); of which Wang Yongchao holds 64% of the Shares; Shi Haiyan holds 12% of the Shares; Liang De holds 4% of the Shares and Zheng Feng holds 20% of the Shares.

 

NOW, THEREFORE, IT IS HEREBY AGREED BY THE PARTIES THAT:

 

1.              INTERPRETATION

 

	
“Business Day”
    	
 
    	
shall   mean any day during which the companies and enterprises in China are open to   business normally, except public holidays, Saturday and Sunday.
    
	
 
    	
 
    	
 
    
	
“Closing Day”
    	
 
    	
shall   mean the day when the Price specified in Article 2.3 hereof is due for   the purpose of the Option.
    

 

2.              OPTION ARRANGEMENT

 

2.1          The Obligors shall severally and jointly grant an exclusive option to the Obligee in respect of all or part of the Shares in Guangzhou Yingzheng in accordance with the terms and conditions of this Agreement. To the extent permitted by the laws of China, the Obligee may exercise the Option at any time it considers appropriate.

 

2.2          Upon occurrence of any of the following circumstances, the Obligors shall transfer the    Shares to the Obligee or its nominee in accordance with the terms and 

 

 

         conditions of this Agreement within ten (10) days upon receipt of written notice (“Exercise Notice”) from the Obligee:

 

(1) According to the opinion of the Obligee or its legal counsel, the laws of China permit overseas enterprises or individuals or wholly foreign owned enterprises to invest in China and operate the same kind of business that is being operated by Guangzhou Yingzheng; or

 

(2) According to the opinion of the Obligee or its legal counsel, although the laws of China do not permit overseas enterprises or individuals or wholly foreign owned enterprises to invest in China and operate the same kind of business that is being operated by Guangzhou Yingzheng, the Obligee has found an enterprise or individual to acquire the Shares in accordance with the laws of China.

 

2.3          The consideration for the transfer of the Shares under this Agreement to the Obligee or its nominee shall be the minimum price permitted by the current applicable laws of China.

 

2.4          Prior to the Closing Day, the Obligors shall jointly set up an escrow account controlled by an independent third party according to the requirement of the Obligee or its nominee, to receive the price paid by the Obligee or its nominee. The Obligee or its nominee shall pay the price as specified in Article 2.3 above to the escrow account on the Closing Day. The Obligors shall complete the relevant formalities for transfer of the Shares with the competent administration for industry and commerce, and the Obligee or its nominee shall give the necessary assistance.

 

2.5          Subject to Article 2.2 above, after the Shares are transferred, the transfer of the Shares is duly registered with the competent administration for industry and commerce, the Obligee or its nominee is registered in the register of shareholders and the Obligee or its nominee obtains an investment certificate, the Obligors shall, within three Business Days upon receipt of a written notice from the Obligee, transfer the aforesaid price from the escrow account to an account designated by the Obligee or its nominee.

 

2.6          The Obligors hereby agree that if the Obligors transfer the Shares at the minimum price permitted by the current applicable laws of China as mentioned above, they shall fully use the price to repay the loan received from the Obligee under the Individual Loan Agreement entered into by the Parties on October 28, 2009.

 

2.7          The Obligee may exercise the Option or any part thereof at any time after the date of this Agreement in single or multiple instances, unless it has acquired all Shares of Guangzhou Yingzheng.

 

2.8          If the Obligee reasonably believes (after seeking legal advice) that any change in law, regulation or the interpretation thereof will make it unlawful for the Obligors to maintain or perform any obligation hereunder, the Obligee may notify the Obligors of such fact. In that case, the Obligee and the Obligors shall carry out good-faith negotiation (subject to the restriction caused by the aforesaid change) to seek a 

 

 

         lawful alternative.  If there is a lawful alternative, the Obligors shall implement such lawful alternative to the satisfaction of the Obligee.

 

2.9          When the Obligee or its nominee acquires all or part of the Shares of Guangzhou Yingzheng, the Obligors shall waiver their right of first refusal.

 

3.              REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS

 

3.1        The Obligors hereby make the following representations and warranties:

 

(1) They have full power and authority to execute and perform this Agreement;

 

(2) The Obligors do not have any action, arbitration or any other judicial or administrative procedure pending or that may potentially materially affect the performance of this Agreement;

 

(3) No Obligor has been declared bankrupt;

 

(4) Other than the share pledge created in favor of the Obligee, there is not any mortgage, pledge, charge or any other third-party encumbrance created upon the Shares held by the Obligors;

 

(5) The Option granted by the Obligors to the Obligee hereunder is exclusive, and the Obligors will not grant an option or similar right to any other third party through other means.

 

3.2        The Obligors hereby undertake that, throughout the term of this Agreement:

 

(1) They will sign a Share Transfer Agreement and adopt a shareholders’ resolution according to this Agreement, and assist the Obligee to obtain the necessary approval from the government authority regarding the share transfer, to submit the Share Transfer Agreement, the amendment to the Articles of Association and the updated register of shareholders to the competent administration for industry and commerce, and to complete all other relevant formalities;

 

(2) Other than the share pledge created in favor of the Obligee, without the prior written consent of the Obligee, the Obligors may not create any mortgage, pledge, charge or any other third-party encumbrance on the Shares, or assign, give away or otherwise dispose of the Shares to any person (other than the Obligee or its nominee);

 

(3) Upon occurrence of any event or receipt of any notice which likely affects the Obligors, Shares or the rights therein or change any obligation of the Obligors hereunder or the performance of any obligation of the Obligors hereunder, the Obligors will promptly notify the Obligee and take all actions and measures according to the reasonable instructions of the Obligee;

 

(4) Other than the Option granted to the Obligee hereunder, without the prior written consent of the Obligee, the Obligors may not grant any option or any other preemptive right to any third party.

 

 

4.              TAXES AND COSTS

 

4.1               Each Party agrees to pay its taxes incurred from the performance of this Agreement. The Obligee hereby agrees that, other than the taxes borne by the Obligors, all costs and expenses incurred from the transfer of the Shares hereunder shall be borne by the Obligee.

 

5.              BREACH OF CONTRACT

 

5.1               If any Party violates its representations, warranties, undertakings or obligations hereunder, it shall indemnify the non-breaching party against all actual losses and damages.

 

6.              CONFIDENTIALITY

 

6.1          All contents of this Agreement shall be confidential. The Obligors shall not disclose any information in connection with this Agreement to any third party, unless it is otherwise agreed by the Obligee in written forms. This Article 6 shall survive after termination of this Agreement.

 

6.2          If any confidential information is to be disclosed as required by the applicable laws, court judgment, arbitral award or decision of government authority, such disclosure shall not be deemed as violation of Article 6.1 above.

 

7.              ASSIGNMENT

 

7.1          The Obligors hereby agree that the Option or any part thereof hereunder may be assigned to any third party by the Obligee, and such third party shall be deemed to be a party to this Agreement and may exercise the Option according to this Agreement, and shall have the rights and obligations as the Obligee hereunder.

 

8.              SEVERABILITY AND UNFAVORABLE INTERPRETATION

 

8.1          If any provision of this Agreement is invalid, unlawful or unenforceable, such provision will not affect the effect and force of the remaining provisions of this Agreement. If any arrangement can be made to render such invalid, unlawful or unenforceable provision valid, lawful and enforceable, the Obligors shall execute all necessary documents or carry out certain actions to implement such arrangement upon the request of the Obligee.

 

8.2          The Parties agree that this Agreement shall be interpreted in a way to make all provisions of this Agreement enforceable, wherever possible.

 

8.3          Any provision of this Agreement shall not be interpreted unfavorably to a Party only because the Party drafts this Agreement or any part hereof.

 

9.              APPROVAL AND REGISTRATION

 

9.1               If the applicable laws and regulations of any jurisdiction permit and demand the approval and/or registration or filing of this Agreement from or with any government authority, the Obligors shall promptly complete the formalities for such approval 

 

 

           and/or registration or filing upon request of the Obligee, and shall provide the Obligee with the proof of such formalities.

 

10.       INDEMNITY UNDERTAKINGS

 

10.1            The Obligors hereby undertake that, if the Obligee is imposed with any fine by any government authority or suffers any other loss due to the event that this Agreement is held as unlawful by any court or any other competent authority in any jurisdiction, the Obligors shall fully indemnify the Obligee against all losses and damages resulting therefrom, including but not limited to all losses suffered by the Obligee, any fine or penalty imposed by any government authority upon the Obligee, as well as all legal costs and other costs and expenses incurred by the Obligee due to such event.

 

11.       GOVERNING LAW AND DISPUTE SETTLEMENT

 

11.1            This Agreement, including but not limited to the existence, performance, validity and interpretation of this Agreement, shall be governed by the laws of the People’s Republic of China.

 

11.2            Any controversy, dispute or claim (“Dispute”) arising out of or in connection with this Agreement shall be settled by the Parties through friendly negotiation. If no settlement can be reached, the dispute shall be submitted by any Party to China International Economic and Trade Arbitration Commission South China Sub-commission according to its then effective arbitration rules for arbitration in Shenzhen. The arbitration shall be carried out in Chinese. The arbitral tribunal shall be composed of one arbitrator. The award shall be final and binding upon the Parties.

 

11.3            The award shall be final and binding upon the Parties. Each Party shall accept and perform the award.

 

13.  AMENDMENT AND SUPPLEMENTATION

 

13.1            Any amendment or supplementation to this Agreement shall be signed by the Parties in written forms. Any amendment and/or supplementation to this Agreement duly executed by the Parties shall be deemed as an integral part of this Agreement, and shall have the same legal force as this Agreement.

 

14.       EFFECTIVENESS AND TERM

 

14.1            This Agreement shall be executed and become effective as of the date mentioned first above.

 

14.2            To the extent permitted by the laws of the People’s Republic of China, this Agreement shall expire when all Shares of the Obligors are acquired by the Obligee or its nominee according to Article 2.1 hereof.

 

15.       MISCELLANEOUS

 

15.1            This Agreement constitutes an entire agreement between the Obligee and the 

 

 

                                    Obligors regarding the Option, and, upon execution of this Agreement, will automatically supersede any other oral or written agreement regarding the Option. In case of any discrepancy between any other oral or written agreement regarding the Option and the provisions of this Agreement, the provisions of this Agreement shall prevail.

 

15.2            This Agreement shall be made and executed in duplicate, one for each party hereto and each being of equal authenticity.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

This Page is intentionally left blank and is an execution page to the Option Agreement.

 

 

	
OBLIGEE
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Guangzhou Yitongtianxia Software Development   Co., Ltd. (affixed with company chop)
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/   Wang Yongchao
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Legal Representative: Wang Yongchao
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
OBLIGORS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Wang   Yongchao
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/   Wang Yongchao
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Shi   Haiyan
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/   Shi Haiyan
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Liang   De
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/   Liang De
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Zheng   Feng
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/   Zheng Feng

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