Document:

Exhibit 10.6

 

 

Loan Agreement

 

 

Among

 

William Wei Huang

 

Qiuping Huang

 

and

 

Shanghai Free Trade Zone GDS Management Co., Ltd.

 

Date: April 13, 2016

 

 

Loan Agreement

 

This Loan Agreement (the “Agreement”) is entered into on April 13, 2016 in Shanghai, China by and among the following parties:

 

William Wei Huang, a citizen of the People’s Republic of China (ID Card No.: 31010719671101125x);

 

Qiuping Huang, a citizen of the People’s Republic of China (ID Card No.: 31010719611116122x);

 

William Wei Huang and Qiuping Huang hereinafter are collectively referred to as the “Borrowers”.

 

Shanghai Free Trade Zone GDS Management Co., Ltd., a wholly foreign owned enterprise duly incorporated under the laws of the People’s Republic of China, with legal address at Room 4056, 4th Floor, 173 Meisheng Road, China (Shanghai) Pilot Free Trade Zone, China (the “Lender”).

 

(In this Agreement, the above parties are referred to individually as a “Party” and collectively as the “Parties”.)

 

Whereas:

 

1.                          Beijing Wanguo Chang’an Science & Technology Co., Ltd. (“GDS Beijing”) is a limited liability company duly incorporated under PRC laws, with legal address at Room A-0155, Floor 2, Building 3, Compound 30, Shixing Avenue, Shijingshan Park, Zhongguancun Science Park, Beijing, and a registered capital of RMB 300,100,000. The Borrowers are the shareholders of GDS Beijing;

 

2.                          The Borrowers intend to obtain necessary financial support from the Lender to expand the business of GDS Beijing;

 

3.                          Now therefore, for the purpose of setting out rights and obligations of the Borrowers and the Lender regarding loan arrangement, the Parties herein agree as follows:

 

Article 1 Terms and Definitions

 

1.1                   Unless otherwise specified in this Agreement or in cases where the context demands a different interpretation, the terms used in this Agreement shall have the following meanings:

 

“Loan” refers to the Renminbi loan offered by the Lender to the Borrowers;

 

“Debt” refers to the outstanding balance under the Loan;

 

“Repayment Notice” has the meaning as stipulated in Article 4.1 of this Agreement;

 

“Repayment Application” has the meaning as stipulated in Article 4.2 of this Agreement;

 

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“Effective Date” refers to the date first above written on which the Parties execute this Agreement;

 

“PRC”, for the purpose of this Agreement, refers to the People’s Republic of China, excluding Hong Kong, Macau and Taiwan.

 

1.2                   The terms referred to herein shall have the following meanings:

 

“Article” shall, unless otherwise stipulated in this Agreement, be construed as an article of this Agreement;

 

“Taxes and Fees” shall be construed so as to include any tax, fee, tariff or other charges of similar nature (including but not limited to, any penalty or interest payable in connection with any failure to pay or any delay in paying any of the such).

 

The “Lender” and the “Borrowers” shall be construed so as to include the successors and assignees as permitted by the Parties based on their respective interests.

 

1.3                   Unless otherwise provided, any reference herein to this Agreement or any other agreements or documents shall be construed as the referral to the amendments, variations, substitutions or supplements as are already made or may be from time to time made to this Agreement or such other agreements or documents, as the case may be.

 

1.4                   The headings hereof have been inserted for convenience of reference only.

 

1.5                   Unless the context otherwise requires, the words importing the plural shall include the singular and vice versa.

 

Article 2 Amount and Interest Rate of the Loan

 

2.1                   The Parties hereby acknowledge that, upon the execution of this Agreement, the Lender shall provide a loan with a principal amount of RMB 300,100,000 to the Borrowers, including the principal amount advanced to William Wei Huang of RMB 300,000,000, and the principal amount advanced to Qiuping Huang of RMB 100,000.

 

2.2                   The interest rate of the Loan hereunder is nil, i.e., no interest is accrued thereupon.

 

Article 3 Purpose

 

The Borrowers shall use the Loan under this Agreement only for business expansion of GDS Beijing.

 

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Article 4 Repayment

 

4.1                   The Lender may, at its own absolute discretion, at any time request that the Debt be discharged, in whole or in part, by the Borrowers, upon a 30-day prior repayment notice to the Borrowers (the “Repayment Notice”). The Lender may request that the Borrowers repay the Debt in whole or in part in the following methods pursuant to the preceding provision:

 

a)                 Repay the Debt in full by purchasing or designating a third party to purchase the corresponding equity interest held by the Borrowers in GDS Beijing at such a price equivalent to the amount of the Debt requested to be discharged, provided that the ratio of the equity interest to be so purchased to the equity interest held by the Borrowers in GDS Beijing shall be equivalent to the ratio of the Debt required to be discharged to the principal amount of the Loan borrowed by the Borrowers hereunder.; or

 

b)                 in other ways determined by resolutions passed by the board of directors of the Lender in accordance with its articles of association and the stipulations of applicable laws and regulations.

 

4.2                   The Borrowers may at any time request to repay the Debt, in whole or in part, by servicing a 30-day prior repayment application (the “Repayment Application”) to the Lender. In such case, Borrowers may discharge its Debt by transferring to the Lender the equity interest in GDS Beijing in the amount equal to the Debt amount to be discharged by the Borrowers, or by the methods recognized by the Lender pursuant to the aforesaid Article 4.1, in whole or in part. In the former situation, the Lender shall have the right to purchase or to designate a third party to purchase part of the equity interest held by the Borrowers in GDS Beijing at such a price equivalent to the amount of the Debt to be discharged by the Borrowers, provided that the ratio of the equity interest to be so purchased to the equity interest held by the Borrowers in GDS Beijing shall be equivalent to that of the Debt required to be discharged to the principal amount of the Loan borrowed by the Borrowers hereunder; or

 

4.3                   Upon the expiration of the 30-day period set forth in the Repayment Notice or the Repayment Application, as the case may be, the Borrowers being requested or applied to repay the Debt shall discharge the Debt in accordance with the repayment method specified in the Repayment Notice, or by any other methods determined by a resolution passed by the board of directors of the Lender in accordance with its articles of association and the stipulations of applicable laws and regulations, or by any other methods stipulated in this Agreement.

 

4.4                   When the Borrowers discharge the Debt pursuant to the above provisions of this Article IV, the Parties shall execute relevant written documents to acknowledge that the Debt has been absolutely discharged in accordance with the methods agreed upon in this Agreement.

 

Article 5 Taxes and Fees

 

All Taxes and Fees in connection with the Loan shall be borne by the Lender.

 

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Article 6 Confidentiality

 

6.1                   Regardless of the termination of this Agreement, the Borrowers shall keep in confidential (i) the execution, performance and content of this Agreement, and (ii) Lender’s trade secrets, proprietary information and client information (the “Confidential Information”) learnt or received by the Borrowers in connection with the execution and performance of this Agreement. The Borrowers may use the Confidential Information solely for the performance of its obligations hereunder. Without the Lender’s written consent, the Borrowers shall not disclose such Confidential Information to any third party, otherwise such Borrower shall be held liable for breach of this Agreement and shall indemnify the Lender against all losses.

 

6.2                   Notwithstanding any other provisions herein, the effect of this Article 6 shall survive the suspension or termination of this Agreement.

 

Article 7 Notification

 

7.1                   Any communications made as required by or pursuant to this Agreement including notices, demands, requests and other correspondences shall be delivered to the recipient in writing.

 

7.2                   If any of such notices or other correspondences is transmitted by facsimile or telex, it shall be deemed delivered immediately upon transmission; if delivered in person, it shall be deemed delivered at the time of delivery; if sent by post, it shall be deemed delivered five (5) days after dispatch.

 

Article 8 Breach of Agreement

 

8.1                   The Borrowers hereby undertake that it will indemnify and hold harmless the Lender against any action, charge, claim, cost, harm, demand, fee, liability, loss and procedure suffered or incurred to Lender from the breach by the Borrowers of any of its obligations hereunder.

 

8.2                   Notwithstanding any other provisions herein, the effect of this Article shall survive the suspension or termination of this Agreement.

 

Article 9 Miscellaneous

 

9.1                   This Agreement is executed in triplicate (3 copies), with each Party holding one (1) copy.

 

9.2                   The conclusion, validity, performance, amendment, interpretation and termination of this Agreement shall be governed by the PRC laws.

 

9.3                   The Parties shall settle any dispute arising out of or relating to this Agreement through

 

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amicable negotiation. If any dispute cannot be resolved through negotiations within thirty (30) days, the dispute shall be referred to Beijing Arbitration Commission for arbitration in accordance with the commission’s arbitration rules. The seat of arbitration shall be Beijing. The arbitration award shall be final and binding upon the Parties. After arbitration award takes effect, any party shall have the right to apply for the enforcement of the arbitration award to a court with jurisdiction. The competent court shall have right to grant a provisional remedy on request by the disputing party, such as a judgment or an order to seize or freeze the breaching party’s properties or equity shares.

 

9.4                   Any right, power or remedy granted to a Party by any provision of this Agreement shall not exclude the Party from any right, power or remedy granted by other provisions of this Agreement; and any exercise of any right, power or remedy by a Party shall not preclude the Party from exercising other rights, powers or remedies.

 

9.5                   No failure or delay by any Party in exercising any right, power or remedy (“Such Rights”) provided by law or under this Agreement shall constitute a waiver of Such Rights and no single or partial waiver of any Such Rights shall preclude the exercise of any Such Rights in other means or the exercise of any other Such Rights.

 

9.6                   The headings hereof have been inserted for convenience of reference only, under no circumstances shall such headings be construed to affect the meaning, construction or effect of this Agreement.

 

9.7                   The provisions of this Agreement are severable and independent to one another. If at any time one or several articles herein shall be deemed invalid, illegal or unenforceable, the validity, legality or enforceability of other provisions herein shall not be affected thereby.

 

9.8                   Any amendment and supplement of this Agreement shall be made in writing and duly executed by the Parties herein before taking effect.

 

9.9                   The Borrowers shall not assign its rights and/or obligations hereunder to any third party without the prior written consent of the Lender, while the Lender shall have the right to assign its rights and/or obligations hereunder to its designated third party upon notifying the other Parties.

 

9.10            This Agreement is binding on the lawful successors and assignees of the Parties.

 

[Remainder of this page intentionally left blank]

 

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In witness whereof, this Loan Agreement is executed by and among the following parties on the date and at the place first above written.

 

 

	
Borrower:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
William Wei Huang
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Signature:
    	
/s/ William Wei Huang
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Qiuping Huang
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Signature:
    	
/s/ Qiuping Huang
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Lender:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Shanghai Free Trade Zone GDS Management   Co., Ltd.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(Seal)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Signature:
    	
/s/ William Wei Huang
    	
 
    
	
Authorized representative: William Wei   Huang
    	
 
    
	
Title: Legal Representative
    	
 
    

 

6Exhibit 10.7

 

 

Exclusive Technology
 License and Service
 Agreement

 

 

Between

 

Beijing Wanguo Chang’an Science & Technology Co., Ltd.

 

and

 

Shanghai Free Trade Zone GDS Management Co., Ltd.

 

Date: April 13, 2016

 

 

Exclusive Technology License and Service Agreement

 

This Exclusive Technology License and Service Agreement (hereinafter, the  “Agreement”) is entered into by and between the following parties on April 13, 2016 in Shanghai, China:

 

(1)                            Beijing Wanguo Chang’an Science & Technology Co., Ltd., a limited liability company duly incorporated and validly existing under the laws of the People’s Republic of China, with legal address at Room A-0155, Floor 2, Building 3, Compound 30, Shixing Avenue, Shijingshan District, Beijing (hereinafter, the Party A”); and

 

(2)                            Shanghai Free Trade Zone GDS Management Co., Ltd., a wholly foreign owned enterprise duly incorporated and validly existing under the laws of the People’s Republic of China, with legal address at Room 4056, Floor 4, 173 Meisheng Road, Shanghai Pilot Free Trade Zone, China (hereinafter, the Party B”).

 

(In this Agreement, Party A and Party B are collectively referred to as “the Parties”, and individually referred to as “a Party”.)

 

Foreword

 

Whereas, Party A is a limited liability company duly incorporated and validly existing in Beijing, with Internet data center service under 1st Category of value-added telecommunication business and Internet access service under 2nd Category of value-added telecommunication business, and technology development and technical service relating to computer disaster recovery backup and data backup as its main business scope;

 

Whereas, Party B is a wholly foreign owned enterprise duly incorporated and validly existing in Shanghai, with investment and business decision-making, capital operation and financial management, R & D and technical support, shared service within the group company, and outsourcing service for offshore companies, employee training and management, marketing service and consulting service relating to the above-mentioned instances as its main business scope;

 

Whereas, Party A requires Party B to provide its software license and relevant service relating to Party A’s business operation (see the definition below), and Party B agrees to provide the aforesaid service to Party A.

 

Now therefore, the Parties hereby mutually agree as follows through amicable negotiation:

 

Article 1 Terms and Definitions

 

1.1                          Unless otherwise specified or in cases where the context demands a different interpretation, the terms used in this Agreement shall have the following meanings:

 

 

	
“Annual   business plan”:
    	
 
    	
Party A’s annual business development plan and budget   report for the next calendar year prepared under this Agreement with the   assistance of Party B before November 30 every year.
    
	
 
    	
 
    	
 
    
	
“Breach”
    	
 
    	
has the meaning as stipulated by Paragraph 1,   Article 11 under this Agreement.
    
	
 
    	
 
    	
 
    
	
“Breaching party”
    	
 
    	
has the meaning as stipulated by Paragraph 1,   Article 11 under this Agreement.
    
	
 
    	
 
    	
 
    
	
“Business related technology”:
    	
 
    	
Any and all software and technology related to Party   A’s business and developed by Party A (including subsidiaries of Party A) on   the basis of the services provided by Party B under this Agreement.
    
	
 
    	
 
    	
 
    
	
“China”:
    	
 
    	
refers to the People’s Republic of China, for the   purpose of this Agreement, excluding Hong Kong, Macau and Taiwan.
    
	
 
    	
 
    	
 
    
	
“Client information”
    	
 
    	
has the meaning as stipulated by Paragraph 1,   Article 6 under this Agreement.
    
	
 
    	
 
    	
 
    
	
“Confidential information”
    	
 
    	
has the meaning as stipulated by Paragraph 2,   Article 6 under this Agreement.
    
	
 
    	
 
    	
 
    
	
“Equipment”:
    	
 
    	
Any and all equipment owned or purchased from time   to time, and utilized by Party B for the provision of service.
    
	
 
    	
 
    	
 
    
	
“Party A’s business”:
    	
 
    	
All business conducted and developed by Party A   currently and at any time during the term of this Agreement, including but   not limited to Internet data center service under 1st Category of value-added telecommunication   business, Internet access service under 2nd Category of value-added telecommunication   business, and technology development and technical service relating to   computer disaster recovery backup and data backup.
    
	
 
    	
 
    	
 
    
	
“Service”:
    	
 
    	
Software license, technical support and other   service provided by Party B exclusively to Party A, as well as implementation   of Party A’s data process program and relevant programs, including but not   limited to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(1)              licensing Party A   to use relevant software applications necessary for its business;
    

 

 

	
 
    	
 
    	
(2)              total IT solutions   necessary for Party A’s business;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(3)              daily management,   maintenance, and update of hardware equipment and databases;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(4)              development,   maintenance and update of relevant software application;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(5)              training of Party   A’s professional technicians;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(6)              assistance to   Party A in the collection and research of relevant technology information;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(7)              other relevant technology   service and consulting service provided to Party A from time to time upon its   request;
    
	
 
    	
 
    	
 
    
	
“Service fees”:
    	
 
    	
All fees paid by Party A to Party B in accordance   with Article 3 of this Agreement for the software licenses and other   service provided by Party B.
    
	
 
    	
 
    	
 
    
	
“The said party’s rights”
    	
 
    	
has the meaning as stipulated by Paragraph 5,   Article 13 under this Agreement.
    

 

1.2                          To invoke any laws and regulations (the “Laws”) under this Agreement means:

 

(1)                          To invoke at the same time the content of the amendments, adjustments, complements and revisions of the Laws no mater it comes into effect before or after the conclusion of this Agreement; and

 

(2)                          To invoke at the same time other decisions, notices and rules made or taking effect according to the Laws.

 

1.3                          Unless otherwise stipulated in the context of this Agreement, all articles, paragraphs and subparagraphs as well as their subdivisions and abbreviations cited herein have meaning provided under this Agreement and its amendments, if any.

 

Article 2 Service

 

2.1                          Party A needs Party B’s service to facilitate its business and Party B agrees to provide such service to Party A. For this purpose, Party A herewith authorizes Party B as its exclusive provider of software and technical service and Party B agrees to accept the authorization.

 

 

2.2                          Party B shall, in accordance with the provisions of this Agreement, provide service to Party A and Party A shall help facilitating Party B’s service.

 

Article 3 Service Fees

 

3.1                          As stipulated in Paragraph 2 Article 3, Party A agrees to pay the fees for the service provided by Party B according to Article 2 of this Agreement.

 

3.2                          The Parties agree that the service fees shall be paid in accordance with the following stipulations:

 

(1)                          Party A shall pay depreciation expenses to Party B on a monthly basis. Party A shall, before the tenth (10) day of each month, pay to Party B a depreciation expense calculated by amortizing the actual value determined annually at the beginning of a year to the equipment’s period of depreciation.

 

(2)                          Party B shall be entitled to all of Party A’s business net profits (including net profits from its subsidiaries) as considerations for the service provided by Party B to Party A under this Agreement. After the end of each fiscal year, both parties shall calculate the outstanding service fees based on Party A’s total consolidated pre-tax revenue and net profit of last fiscal year as confirmed in the audit report issued by a Chinese certified accounting firm recognized by both parties, in order to negotiate on and determine the annual service fees to be paid by Party A to Party B. Party A undertakes to provide the relevant Chinese certified accounting firm with all necessary materials and assistance and urge such firm to complete the audit report of last fiscal year and issue it to both Party A and Party B within thirty (30) days after the end of last fiscal year. Where any dispute arises between the Parties over the amount of the service fees determined in accordance with Article 3 of this Agreement, the figure confirmed by Party B shall prevail.

 

3.3                          Party A shall transfer all the service fees of the previous year determined as per Article 3.2.(2) above to the bank account designated by Party B in accordance with the provisions of this Article before the date designated by Party B. In case Party B changes its bank account, it shall notify Party A in writing the change seven (7) workdays in advance.

 

3.4                          Notwithstanding the provisions in Paragraph 1, Article 3 of this Agreement, the Parties may adjust the specific amount of equipment depreciation referred to in Article 3.2.(1) by consensus.

 

 

Article 4 Obligations of Party A

 

4.1                          The service provided by Party B under this Agreement is exclusive. During the term of this Agreement, Party A shall not enter into, or cause its subsidiaries to enter, any other agreements with a third party for a service identical or similar to Party B’s service without prior written permission from Party B.

 

4.2                          Party A shall provide Party B with the final copy of Party A and its subsidiaries’ annual business plan for the next year before November 30 of each year to help Party B to prepare relevant service plan and purchase software, equipment and consolidate its technical service force as necessary. In case Party A requires Party B to extemporaneously purchase new equipment, it shall negotiate and reach a consensus with Party B fifteen (15) days in advance.

 

4.3                          To facilitate Party B’s provision of service, Party A shall provide relevant information to Party B promptly and accurately upon Party B’s request.

 

4.4                          Party A shall pay Party B the service fees on time and in full in accordance with Article 3 of this Agreement.

 

4.5                          Party A shall maintain its good reputation, proactively expand business, and maximize its profit.

 

Article 5 Intellectual Property Rights

 

5.1                          The intellectual property rights of the products created in the process of Party B’s provision of service shall be attributable to Party B.

 

5.2                          Whereas the business operation of Party A relies on the service provided by Party B under this Agreement, Party A (including its subsidiaries) agrees to make the following arrangements regarding the business-related technology developed by Party A on the basis of such service:

 

(1)                          If a business-related technology is developed by Party A or its subsidiary in a further development entrusted by Party B, or as a result of the collaboration between Party A and Party B, then the ownership and claims of patent application go to Party B.

 

(2)                          If a business-related technology is independently developed by Party A or its subsidiary, the ownership of the technology shall belong to the entity that has developed such technology, provided: (A) Party A has notified, or has caused its subsidiary to notify, Party B of details of the technology in a timely manner, and has provided relevant materials as per Party B’s request; (B) If Party A or its subsidiary is going to license or transfer such technology, Party B shall, without violating the applicable enforced Chinese laws and regulations, have preemptive

 

 

right to purchase the technology or be licensed to use the technology exclusively, and Party B may use the technology to the same extent to which Party A or its subsidiary would transfer or license the technology to others (Party B has the right to decide whether or not to accept the offer of the transfer or the license); Party A may, upon Party B’s waiver of preemptive right and the exclusive right to the technology, transfer or license the technology to a third party with conditions no superior to those offered to Party B (including but not limited to the transfer price or license fee), and shall guarantee the third party will fully abide by and perform the duties and obligations of Party A under this Agreement. (C) With the exception of the situations specified in Article 5.2(2)(B), Party B has the right to purchase the technology within the term stipulated by Article 8.1 of this Agreement; in such cases, Party A shall, without violating applicable Chinese laws and regulations, accept Party B’s aforesaid offer at the lowest price allowed by applicable laws.

 

5.3                         If Party B is licensed the exclusive right to use the technology as per Article 5.2(2), the aforesaid license shall comply with the following provisions in this Paragraph:

 

(1)                          The term of the license shall be no less than five (5) years (as of the effective date of the Agreement);

 

(2)                          The scope of the rights licensed shall be defined as wide as possible;

 

(3)                          Within the term and the scope of the license, no Party (including Party A ) other than Party B may use or license the technology in any way;

 

(4)                          Without breaching Article 5.3(3), Party A has the right to decide at its discretion to license any other third party to use the technology;

 

(5)                          Upon expiration of the license, Party B shall be entitled to renew the license agreement and Party A shall agree, and the provisions of the license shall remain unchanged at that time save the adjustments as confirmed by Party B.

 

5.4                         Notwithstanding the provisions in the above-mentioned Article 5.2(2), the patent application for any business related technology referred to in the Paragraph shall be handled in accordance with the following provisions:

 

(1)                          If Party A intends to apply for patent for any business related technology described in the aforementioned subparagraph, it shall obtain prior written permission from Party B.

 

(2)                          Party A may apply for patent for any business-related technology independently or transfer such right to a third party only upon the waiver of such rights of Party B. In case Party A transfers the afore-mentioned claims of patent application to a third party, Party A shall guarantee that the third party will fully abide by and perform

 

 

the duties and obligations of Party A under this Agreement; meanwhile, the conditions (including but not limited to the transfer price) Party A offers to the third party shall not be more preferential than that offered to Party B as described in Subparagraph 3.

 

(3)                          Within the term of this Agreement, Party B may at any time require Party A to file a patent application for such business-related technology, and determine at its discretion whether or not to purchase such patent application right. Upon Party B’s written request, Party A shall transfer the claims of patent application to Party B without violating applicable Chinese laws and regulations at the lowest price allowable by law; Party B will be the legal owner of such claims of patent application and, after having been granted the patent, become the legal owner of the claims of patent application.

 

5.5                          The Parties undertakes that either Party shall be indemnified of any and all economic losses incurred by the other Party’s infringement of any third party’s intellectual rights (including but not limited to publish rights, trademark rights, patent rights and know-how).

 

Article 6 Confidentiality

 

6.1                          Within the term of this Agreement, all client information and other related materials (the “Client Information”) related to the business of Party A and the service provided by Party B are jointly possessed by both Parties.

 

6.2                         Both Parties shall keep strictly confidential each Party’s business secrets, proprietary information, Client Information and related materials jointly possessed by them and any nonpublic information of each Party (collectively the “Confidential Information”). Except for disclosure made with a prior written permission from the other Party or as required by relevant laws and regulations or IPO procedures, the recipient of Confidential Information shall not disclose all or any part thereof to any third party; the recipient shall not exploit the Confidential Information or any part thereof unless for the performance of this Agreement.

 

6.3                        The following information shall not be deemed confidential:

 

(a)                          Any information known to the recipient before the disclosure as demonstrated by written evidence(s);

(b)                          Information released into a public domain or known to the public for reasons other than the recipient’s fault; or

(c)                           Information obtained by the recipient from other legal sources.

 

6.4                        The recipient may disclose the Confidential Information to its employees, agencies and experts hired and shall guarantee that this Agreement is of binding force to the aforesaid

 

 

                                          people, who shall keep the Confidential information confidential and use the aforesaid Confidential Information solely for performance of the Agreement.

 

Article 7 Undertaking and warranty

 

7.1                          Party A hereby represents, warranties and undertakes that:

 

7.1.1                     It is a limited liability company duly incorporated and validly existing under the laws of the jurisdiction of its incorporation as an independent legal person and with complete, independent legal status and legal competence to sign, deliver and perform this Agreement, and to act as an independent subject of proceedings.

 

7.1.2                     It is vested with all requisite power and authority within company to execute and deliver this Agreement and all other documents to be signed related to the transaction referred to in this Agreement, and to perform the transaction under this Agreement. This Agreement has been legitimately and appropriately executed and delivered by Party A. This Agreement constitutes a legal and binding obligation of, and enforceable against Party A in accordance with the terms of the Agreement.

 

7.1.3                     At the date of this Agreement, it has obtained all the certificates necessary for its business operation as provided on its business license. It has full right and qualification to conduct business as currently conducted by Party A within the territory of China.

 

7.1.4                     It will provide Party B with consolidated quarterly financial statement and budget for the next quarter within fifteen (15) workdays upon the end of each quarter, and the consolidated financial statement for the fiscal year and the budget for next fiscal year within thirty (30) workdays upon the end of each fiscal year.

 

7.1.5                     It will promptly notify Party B of all legal proceedings and other unfavorable situations where it is involved, and will make utmost efforts to curb the losses and damages.

 

7.1.6                     Without prior written permission from Party B, Party A shall neither dispose of its important assets nor change its current shareholding structure.

 

7.2                          Party B hereby represents and warranties that:

 

7.2.1                     It is a limited liability company duly incorporated and validly existing under the laws of its place of incorporation as an independent legal person with complete, independent legal status and legal competence to sign, deliver and perform this Agreement, and to act as an independent subject of proceedings.

 

 

7.2.2                     It is vested with full power and authority within company to execute and deliver this Agreement and all other documents to be signed related to the transaction referred to in this Agreement, and to perform the transaction under this Agreement. This Agreement has been legitimately and appropriately executed and delivered by Party B. This Agreement constitutes a legal and binding obligation of , and enforceable against Party B in accordance with the terms of the Agreement.

 

Article 8 Term of Agreement

 

8.1                       The Parties hereby confirm that this Agreement takes effect upon its formal execution by the Parties. Unless it is prematurely terminated by the Parties in writing, this Agreement shall expire on April 13, 2026.

 

8.2                       The obligations of Party A and Party B under Article 6 of this Agreement shall survive the termination of this Agreement.

 

Article 9 Indemnification

 

Party A shall indemnify Party B from any and all losses incurred or may incur as a result of Party B’s provision of service, including but not limited to losses sustained from legal suits, recovery, arbitration, claims and administrative investigation and penalties, with the exceptions of the losses caused by Party B’s intentional misconduct or gross negligence.

 

Article 10 Notification

 

10.1                Any communications between the Parties pursuant to this Agreement including notices, requirements, offers and other correspondence shall be delivered to the recipient in written form.

 

10.2                If any of such notices or other correspondences is transmitted by facsimile or telex, it shall be deemed as delivered immediately upon transmission; if delivered personally, it shall be deemed as delivered at the time of actual delivery; if delivered by post, it shall be deemed delivered five (5) days after posting.

 

Article 11 Breach of Agreement

 

11.1                The Parties agree and confirm that, any substantial violation of any provision under this Agreement, or substantial non-performance of any obligation under this Agreement by a

 

 

                                        Party (the “Breaching Party”) constitutes a breach of the Agreement (“Breach of Agreement”). The non-breaching Party shall be entitled to demand the Breaching Party to correct or take remedial measures within a reasonable time. In case the Breaching Party does not take any remedial measures in a reasonable time or within ten (10) days of written notice of the non-breaching Party requiring remedial measures to be taken, where Party A being the Breaching Party, the non-breaching Party has the right to take any of the following measures at its discretion: (1) terminate this Agreement and demand full damages from the Breaching Party; or (2) demand compulsory performance of the obligations under this Agreement and full damages from the Breaching Party; where Party B being the Breaching Party, the non-breaching Party has the right to demand compulsory performance of the obligations under this Agreement and full damages from the Breaching Party.

 

11.2                Both Parties agree and confirm that under no circumstances shall Party A terminate this agreement for any reason, unless otherwise specified in this Agreement or required by law.

 

11.3                Notwithstanding any other provisions herein, the effect of Article 11 shall survive suspension or termination of this Agreement.

 

Article 12 Force Majeure

 

In case any Party is unable to perform this Agreement at all or in accordance with the conditions agreed upon because of earthquakes, typhoons, floods, fire, wars, computer viruses, design flaws of instrumental tools, hacker attacks on the Internet, changes of policies and laws and other situations which cannot be foreseen, avoided or overcame, the affected Party shall immediately notify the other Party by fax and provide within 30 days the details of the force majeure and evidence documents proving the reasons that it is unable to perform this agreement or the performance of this agreement will be delayed. The aforesaid certificate documents shall be issued by a notarization institution located in the area where the force majeure event takes place. The Parties shall, depending on the impact of the force majeure event on the performance of this Agreement, negotiate whether the obligations under this Agreement should be partly exempted or postponed. Both parties are exempted from the compensation liability for economic losses caused by force majeure events.

 

Article 13 Miscellaneous

 

13.1                This Agreement is executed in two copies, with each Party holding a copy.

 

13.2                The conclusion, validity, performance, amendment, interpretation and termination of this Agreement are governed by the laws of the People’s Republic of China.

 

13.3                The Parties shall strive to settle any dispute, conflicts, or compensation claims arising from

 

 

                                        the interpretation or performance (including any issue relating to the existence, validity and termination) in connection with this Agreement through amicable negotiation. If the discrepancies cannot be solved by negotiations within thirty (30) days, they should be submitted to Beijing Arbitration Commission for arbitration in accordance with the commission’s arbitration rules in Beijing. The award of the arbitration shall be final and binding upon the Parties.

 

13.4                Any right, power or remedy granted to a Party by one term of this Agreement does not exclude the Party from any right, power or remedy granted by other terms or laws and regulations.

 

13.5                No failure or delay by any Party in exercising any right or remedy provided by law or under this Agreement shall impair such right or remedy or operate or be construed as a waiver or variation of it or preclude its exercise at any subsequent time and no single or partial exercise of any such right or remedy shall preclude any other or further exercise of it or the exercise of any other right or remedy.

 

13.6                The headings hereof have been inserted for convenience of reference only, under no circumstances shall such headings be construed to affect the meaning, construction or effect of this Agreement.

 

13.7                This Agreement supersedes any other writing or oral agreements entered into by and between the Parties and constitutes a complete agreement between the Parties.

 

13.8                The provisions of this Agreement are severable and independent to one another. If at any time one or several articles herein shall be deemed invalid, illegal or unenforceable, the validity, legality or enforceability of other provisions herein shall not be affected thereby.

 

13.9                The Parties may amend and supply this Agreement with a written agreement. The amendment and supplement duly executed by the Parties shall be a part of this Agreement and shall have the same legal effect as this Agreement.

 

13.10         Without prior written permission from the other party, no party may transfer any of its rights and/or obligations under this Agreement to any third Party.

 

13.11         This Agreement is binding to all the parties herein and their respective lawful successors and assignees.

 

13.12         The Parties undertake that they will report and pay their respective taxes and fees relating to the transaction under the Agreement.

 

[Remainder of this page intentionally left blank]

 

 

In witness whereof, this Exclusive Technology License and Service Agreement is signed by the Parties on the date and at the place first above written.

 

	
Party A:
    
	
 
    
	
 
    
	
Beijing Wanguo Chang’an Science &   Technology Co., Ltd.
    
	
(Seal)
    
	
 
    
	
 
    
	
Signature:
    	
/s/ William Wei Huang
    	
 
    
	
Name: William Wei Huang
    	
 
    
	
Post: Authorized Representative
    	
 
    
	
 
    
	
 
    
	
 
    
	
Party B:
    
	
 
    
	
 
    
	
Shanghai Free Trade Zone GDS Management   Co., Ltd.
    
	
(Seal)
    
	
 
    
	
 
    
	
Signature:
    	
/s/ William Wei Huang
    	
 
    
	
Name: William Wei Huang
    	
 
    
	
Post: Authorized Representative
    	
 
    

 

[Signature Page]

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