Document:

exh_436.htm

Exhibit 4.36

 

PURCHASE AGREEMENT

 

This Purchase Agreement is entered into on July 1, 2013, by and between Mainfame Group Limited, a company duly incorporated in British Virgin Islands ("Company"), and Champion Connection Network H.K. Limited, a company duly incorporated in Hong Kong ("Investor").

 

WHEREAS,

 

	
(1)  

	
The Investor, Shenzhen Champion Connection Co., Ltd. ("Champion") and Mr. Zhou entered into an Call Option Agreement in June 2013 ("Call Option Agreement"), whereby the Investor or its designated qualified entity may purchase all or part of shares of Champion held by the Investor as a shareholder of Champion, as well as the exclusive option to all or part of assets of Champion at any time ("Call Option"), subject to the requirements of the applicable laws of China;

 

	
(2)  

	
The Investor undertakes that it is committed to developing the institutional customer business of the Company and its subsidiaries and affiliates, and will procure Champion to sell its assets, software, technologies, personnel and related businesses in the field of institutional customer business as a package to Shenzhen Genius Information Technology Co., Ltd. ("Shenzhen Genius", an affiliate of the Company), and for this purpose agrees to transfer the Call Option under the Call Option Agreement to the Company. Therefore, the Company agrees to issue a certain amount of the common shares of the Company and pay a certain amount of cash to the Investor, as the consideration for the above mentioned Call Option and the Investor's commitment of procuring Shenzhen Genius to purchase the assets of Champion;

 

The Parties hereby enter into the following agreements:

 

1. PURCHASE OF COMPANY SHARES

 

1.1 Subscription and Issuance of Common Shares

 

	
a)  

	
On or before the Closing (as defined below), as the consideration for the Investor's transfer of the Call Option and procuring Shenzhen Genius to purchase the assets of Champion, the Company shall have already approved the Investor to purchase and have issued 3,000 common shares to the Investor at the par value of US$ 1.00 per share ("Shares"), and these shares account for thirty percent (30%)  ("Purchased Shares") of all issued and outstanding share capital of the Company immediately after the Closing.

 

	
b)  

	
Subject to the terms and conditions of this Agreement, at the time of Closing, the Investor agrees to purchase while the Company agrees to sell and issue to the Investor the amount of Purchased Shares at the price of US$ 1.00.

 

1.2 Closing

 

When all closing preconditions set forth in Article 5 and Article 6 hereof have been properly satisfied or waived, the purchase of the Purchased Shares shall be completed as soon as practical by the forms of remote closing documents and signature, or at any other time or place agreed by the Company and the Investor (such time and place are defined as "Closing"). At the time of Closing, if the purchase price of the Purchased Shares is paid by cheque, telegraphic transfer or both, the Company shall deliver to the Investor a share certificate representing the Purchased Shares purchased by the Investor.

 

2. SALE OF CALL OPTION BY INVESTOR TO THE COMPANY

 

  

  

  

2.1 Purchase and Price of the Option

 

The Investor hereby agrees to sell and transfer to the Company its Call Option for the shares and assets of Champion. As the consideration for the Investor's sale of 20% Call Option and procuring Shenzhen Genius to purchase the assets of Champion, the Company hereby agrees to remit an amount in U.S. dollar equivalent to RMB 5,000,000 to the Investor's designated bank account no later than three business days prior to the Closing.

 

2.2 Transfer of Call Option after Closing

 

After the Investor has transferred 20% of the Call Option to the Company on or before the Closing in accordance with this Agreement, the Investor shall cause to sign an amendment to the Option Agreement between the Company and Champion, so that the Company will replace the Investor as the holder of 20% of the Call Option.

 

3. Representations and Warranties of the Company

 

The Company hereby makes the following representations and warranties to the Investor:

 

3.1 Organization, Good Standing and Validity

 

The Company is a corporation duly established, having good standing and validly existing under the laws of British Virgin Islands, and has all corporate powers and authorities to operate its existing businesses.

 

3.2 Valid Actions of the Company, Shareholders and Officers

 

Prior to the Closing, the Company and its officers, directors and shareholders have taken or will take all necessary corporate actions to approve, execute, deliver and perform all obligations of the Company hereunder, and approve, issue, sell and deliver the Purchased Shares sold hereunder. This Agreement constitutes the legally effective and binding obligation on the Company and may be enforced against the Company in accordance with the terms and conditions hereof.

 

3.3 Effective Issuance of Shares

 

The Purchased Shares purchased by the Investor according to this Agreement, when issued, sold and delivered according to the terms and conditions hereof and at the price stipulated herein, will become the shares properly and validly issued, fully paid and non-assessable shares, and may be transferred without any restriction, other than the transfer restriction stipulated herein and the restriction under the applicable securities laws.

 

3.4 Compliance with Requirements of Other Documents

 

The Company has not violated, defaulted, breached or conflicted with any provision of its articles of association, or violated, defaulted, breached or conflicted with any instrument, judgment, decree, writ, order, or to the knowledge of the Company, any law, regulation or rule applicable to the Company (including but not limited to any law, regulation or rule regarding privacy, personal identity information or export restriction).

 

4. REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

 

The Investor hereby makes the following representations and warranties:

 

4.1 Authority

 

The Investor has full power and authority to execute this Agreement. This Agreement constitutes the legally effective and binding obligation on the Investor, and may be enforced against the Investor in accordance with the terms and conditions of this Agreement, unless it is restricted by: (a) any applicable law regarding bankruptcy, liquidation, reorganization, moratorium or generally affecting the creditor's rights; or (b) any applicable law regarding enforcement, injunctive relief or any other similar means.

 

  

  

  

4.2 Information Disclosure

 

The Investor hereby acknowledges that it has received all information necessary for its decision to purchase the Purchased Shares. The Investor further acknowledges that it has the opportunity to raise questions and receive answers to and from the Company regarding the requirements of the Purchased Shares, and business, assets, outlook and financial conditions of the Company. However, the preceding sentence does not constitute a restriction on the representations and warranties made by Company in Article 3 hereof, or prejudice the Investor's right to rely upon the representations and warranties made by Company in Article 3 hereof.

 

4.3 Call Option Agreement

 

The Investor hereby acknowledges that the Call Option Agreement constitutes the lawfully effective and binding obligation and may be enforced against the Investor in accordance with the terms and conditions of the Option Agreement, and the Call Option transferred to the Company is free from any encumbrance. Such transfer is not required to obtain the approval of any third party.

 

5. PRECONDITIONS FOR THE INVESTOR'S PERFORMANCE OF CLOSING OBLIGATION

 

As the preconditions for fulfilling the closing obligation by the Investor according to Article 1 hereof, the following conditions shall be satisfied to the satisfaction of the Investor or waived by the Investor on or before the Closing:

 

5.1 Performance

 

The Company shall already perform and comply with, or procure other related group companies to perform and comply with this Agreement, the Call Option Agreement and the related assets purchase agreement signed among the Shenzhen Genius, the ultimate beneficiary of the Investor and Shenzhen Champion Connection Co., Ltd. (Chinese affiliates of the Investor controlled by the ultimate beneficiary of the Investor), and such agreement shall provide all obligations to be performed and complied with at all material aspects and at or before the Closing by the Company or its related group companies under certain Assets Purchase Agreement relating to the institutional customer business ("Assets Purchase Agreement", and together with this Agreement and the Call Purchase Agreement collectively as "Transaction Documents").

 

5.2 No Prohibition; Authority

 

There is not any applicable law which prevents the completion of the transactions contemplated in the Transaction Documents. All consents as required by the Transaction Documents to be obtained by the Company from any competent government authorities or from any other person prior to the Closing and relating to the transactions have been obtained and remain effective at the Closing.

 

5.3 Transaction Documents

 

All Parties to the Transaction Documents, other than the Investor, have dully executed and delivered the Transaction Documents to the Investor.

 

6. PRECONDITIONS FOR THE COMPANY'S PERFORMANCE OF CLOSING OBLIGATION

 

As the preconditions for fulfilling the closing obligation by the Company according to Article 1 hereof, the following conditions shall be satisfied to the satisfaction of the Company or waived by the Company on or before the Closing:

 

  

  

  

6.1 Performance

 

The Investor shall already perform and comply with, or procure its affiliates to perform and comply with all obligations and terms which shall be performed and complied with by the Investor at all material aspects and at or before the Closing under this Agreement and the Transaction Documents. It shall include that the Investor has procured Champion and Shenzhen Genius to execute an Assets Purchase Agreement, and the Champion has fulfilled its obligation of assets closing under the Assets Purchase Agreement.

6.2 Transaction Documents

 

The Investor and its relevant affiliate have duly executed and delivered to the Company the Transaction Documents to which the Investor or such relevant affiliate is a party.

 

7. COMMITMENT AFTER CLOSING

 

7.1 Call Option of the Company upon Termination of the Cooperation

 

	
a)  

	
If the Assets Purchase Agreement is terminated before December 31, 2014 or another expiration date stipulated therein (the period from the cooperation commencement date and the agreed termination date is referred to "Cooperation Period" hereinafter), or the business cooperation contemplated in the Assets Purchase Agreement is otherwise terminated (each as "Early Termination"), the Company may issue a repurchase notice ("Repurchase Notice") to the Investor, to repurchase 1,500 shares held by the Investor at the zero price or nominal price, accounting for 50% of the Purchased Shares (as adjusted in case of share split, consolidation, dividend, reclassification or similar event) ("Repurchased Shares"). The Investor shall make its best efforts to complete the necessary steps for transferring the Repurchased Shares to the Company, including but not limited to execution of the transfer instrument and surrendering the share certificate representing such Purchased Shares to the Company for cancellation within five days upon receipt of the Repurchase Notice.

 

	
b)  

	
If no Early Termination occurs during the Cooperation Period, the Company agrees to issue extra shares accounting for five percent (5%) of all issued and outstanding share capital of the Company to the Investor or its designated assignee at the zero price or nominal price within 10 days upon expiration of the Cooperation Period, and pay to the Investor (i) a copy of the updated shareholder register of the Company; and (ii) a share certificate representing that such extra shares are held by the Investor.

 

7.2 Right to Distribution of Dividends

 

The Investor hereby agrees and confirms that, in addition to any right under the articles of association as amended by the Company from time to time or under the applicable laws, (i) it shall be entitled to the distributable dividends generated from Zhengyong Information Technology (Shanghai) Co., Ltd. ("Platform Company") or the Cooperative Business only relating to the Shares held by the Investor after the Closing; and (ii) it hereby waives the right to the dividends generated from the net assets of the Platform Company or the Cooperative Business only relating to the Shares held by the Investor prior to the Closing.

 

8. MISCELLANEOUS

 

8.1 Successors and Assignees

 

Unless it is otherwise stipulated herein, the terms and conditions of this Agreement shall be binding upon and inure to the Parties and their respective successors and assignees (including assignees of any Shares). Unless it is expressly stipulated herein, no provision of this Agreement creates or shall be construed to create any right, remedy, obligation or debt for any person other than the Parties and their respective successors and assignees.

 

8.2 Governing Law

 

  

  

  

This Agreement shall be governed by and construed in accordance with the applicable laws of Hong Kong Special Administrative Region, the People’s Republic of China.

 

8.3 Dispute Settlement

 

If a dispute relating to this Agreement cannot be settled by the Parties, it shall be submitted to Hong Kong International Arbitration Center ("HKIAC") for final settlement according to then effective UNCITRAL Arbitration Rules ("UNCITRAL Rules"), which shall be incorporated into this Article 8.3 by citation, subject to the following provisions: the arbitral tribunal shall be composed of one (1) arbitrator appointed by HKIAC according to the UNCITRAL Rules. The arbitration shall be in Chinese. Notwithstanding any provision of this Agreement or the UNCITRAL Rules, the arbitral tribunal may not issue any award of injunctive relief or similar relief in respect of this Agreement, unless the following conditions are satisfied: (i) such award can be obviously appealed and reviewed at the courts in Hong Kong; and (ii) if such award is affirmed, it will not cause any damage or restriction to or attach any condition on the right or ability of any Party or its Affiliates to operate business or carry out or dispose of other investments.

 

8.4 Counterpart

 

This Agreement is executed in the form of fax or electronic signature page, and may be executed in two (2) or more counterparts, and each of counterparts shall be deemed as an original copy, but all counterparts shall constitute one (1) instrument.

 

8.5 Heading

 

All headings and sub-headings of this Agreement are only inserted herein for convenience, and shall not be applied to construe or interpret this Agreement.

 

8.6 Notice

 

Any notice or other communication required hereunder shall be in writing forms, and deemed as duly served when: (a) it is delivered to the addressee by personal delivery; (b) it is delivered by email or fax with confirmation during the normal business hours of the addressee, if during non-business hours, it shall be deemed as duly served on the next business day; (c) on the five (5) days after it is sent by registered mail with return receipt and postage prepaid; or (d) on the next day after it is sent by a national recognized overnight courier service with a written confirmation of receipt. All communications shall be sent to the address of the other Party indicated in the signature page below (or any other address as notified according to this Article 8.6).

 

8.7 Amendment and Waiver

 

Any amendment to the provisions hereof or waiver of compliance with any provision hereof (whether generally or specifically, and whether retroactive or not) shall be of no effect and force, unless the same is agreed by the Company and the Investor in writing.

 

8.8 Severability

 

If any or more provisions hereof are held as enforceable under the applicable laws, such provisions shall be precluded from this Agreement, and the remaining provisions of this Agreement shall be construed after such preclusion and this Agreement shall be enforced according to the remaining provisions.

 

8.9 Entire Agreement

 

This Agreement and the documents referred to herein constitute an entire agreement between the Parties, and each Party is not bound by or liable for any representation, warranty or undertaking other than the representations, warranties and undertakings made by it in this Agreement or any document referred to herein.

 

 

  

  

  

[THE REMAINING PART OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

 

 

  

  

  

IN WITNESS WHEREOF, the Parties have duly executed this Agreement on the date indicated first above.

 

COMPANY:

 

MAINFAME GROUP LIMITED

 

By:

 

 

IN WITNESS WHEREOF, the Parties have duly executed this Agreement on the date indicated first above.

 

INVESTOR:

 

Champion Connection Network H.K Limited

 

By:exh_437.htm

Exhibit 4.37

 

 

Cooperation Framework Agreement

 

Regarding

 

Precious Metals Business

 

 

Shanghai Stockstar Wealth Management Co., Ltd.

 

And

 

Golden Pioneer (Beijing) Network Technologies Co., Ltd.

 

And

 

Shanghai Excellence Advertising Co., Ltd.

 

 

 

 

 

July 2013

  

  

  

 

TABLE OF CONTENTS

 

	
ARTICLE 1

	
INTERPRETATION

	
2

	
1.1

	
Definitions

	
2

	
1.2

	
Interpretation

	
3

	
ARTICLE 2

	
SCOPE AND FORM OF COOPERATION

	
3

	
2.1

	
Scope of Cooperation

	
3

	
2.2

	
Form of Cooperation

	
3

	
2.3

	
Transaction Structure

	
4

	
ARTICLE 3

	
COOPERATION CONDITIONS AND PRINCIPLES

	
4

	
3.1

	
Cooperation Conditions

	
4

	
3.2

	
Cooperation Principles

	
5

	
3.3

	
Transitional Arrangement

	
5

	
ARTICLE 4

	
MANAGEMENT OF PLATFORM COMPANY

	
6

	
4.1

	
Board of Directors

	
6

	
4.2

	
Management Team

	
6

	
4.3

	
Profit Distribution

	
6

	
ARTICLE 5

	
CONFIDENTIALITY

	
6

	
ARTICLE 6

	
BREACH AND LIABILITIES

	
6

	
ARTICLE 7

	
GOVERNING LAW AND DISPUTE SETTLEMENT

	
7

	
7.1

	
Governing Law

	
7

	
7.2

	
Dispute Settlement

	
7

	
ARTICLE 8  

	
MISCELLANEOUS

	
7

	
8.1

	
Effectiveness

	
7

	
8.2

	
Amendment

	
8

	
8.3

	
Counterparts

	
8

 

 

  

  

  

Cooperation Framework Agreement

 

This Cooperation Framework Agreement ("Agreement") is entered into on July 1, 2013 in Beijing, China by and among the following Parties (individually as “Party” and collectively as "Parties" hereinafter):

 

Party A: Shanghai Stockstar Wealth Management Co., Ltd. (hereinafter referred to as Shanghai Wealth)

 

Party B: Golden Pioneer (Beijing) Network Technologies Co., Ltd. (hereinafter referred to as Golden Pioneer)

 

Party C: Shanghai Excellence Advertising Co., Ltd. (hereinafter referred to as Shanghai Excellence)

 

WHEREAS,

 

	
(1) 

	
Party A is a limited liability company duly established and validly existing under the laws of China, and its Chinese affiliate Zhengjin (Fujian) Precious Metals Investment Co., Ltd. ("Fujian Zhengjin") is a member of Haixi Precious Metals Exchange and holds a license for trading precious metals; the current shareholder of Fujian Zhengjin is Beijing Huifu Jinyuan Technology Co., Ltd. ("Huifu Jinyuan"); moreover, Party A's Chinese affiliate is applying for a license for trading precious metals in Tianjin;

 

	
(2) 

	
Both Party B and Party C are limited liability companies duly established and validly existing under the laws of China; Party B, Party C and the teams led by them have abundant resources, rich operation and management experiences, and full R&D and marketing ability in the business of precious metals. Party B and Party C intend to jointly invest in and establish a company for the business of precious metals, and intend to acquire 70% shares of Zhongjun Yangguang Investment Management Co., Ltd. ("Zhongjun Yangguang") through the said company. Party B and Party C hereby represent to Party A that Zhongjun Yangguang is acquiring 78.57% shares of Henghui (Tianjin) Precious Metals Management Co., Ltd. ("Henghui Precious Metals"), a member of the precious metals exchange, and the concerned parties have signed a share purchase agreement for this purpose;

 

	
(3) 

	
The Parties intend to contribute and integrate their respective advantageous resources in the business of precious metals, and jointly build a precious metals platform company and carry out the business of precious metals in Shenzhen according to the terms and conditions of this Agreement.

 

NOW, THEREFORE, the Parties hereby enter into the following terms and conditions through friendly negotiation for joint compliance:

 

  

 

  

ARTICLE 1 INTERPRETATION

 

	
1.1  

	
Definitions

 

For the purpose of this Agreement, the following terms shall have the meaning defined below, unless it is otherwise stipulated herein:

 

	
Platform Company

	
Shenzhen Tahoe Investment and Development Co., Ltd., the tentative name for a platform company to be established by Party B and Party C in Shenzhen and of which its capital to be increased by Party A for the business of precious metals and for the cooperation under this Agreement.

	 	 
	
Licensed Companies

	
Certain domestic companies holding the license for the business of precious metals as stipulated herein, including Fujian Zhengjin, Tianjin Company and Henghui Precious Metals.

	 	 
	
Fujian Zhengjin

	
Zhengjin (Fujian) Precious Metals Investment Co., Ltd., currently a member of Haixi Precious Metals Exchange.

	 	 
	
Tianjin Company

	
A company to be established in Tianjin and intending to apply for the membership of Tianjin Precious Metals Exchange.

	 	 
	
Henghui Precious Metals

	
Henghui (Tianjin) Precious Metals Management Co., Ltd., currently a member of Tianjin Precious Metals Exchange.

	 	 
	
Affiliate

	
A party controls, commonly controls or materially influences another party, or two or more than two parties are controlled by, or under the common control of or materially influenced by the same party. For the purpose of this definition, Material Influence shall mean having the power to participate in deciding the financial and business operation policies of a company, but such power can not make the party control or with other parties commonly control the decision of such policies.

	 	 
	
Control

	
(Including controlling, controlled and under common control) The power to directly or indirectly direct or cause to direct the decision of management, financial and business operation policies of an entity, whether through the voting securities, contract or any other means.

	 	 
	
Closing Date

	
The date when the Parties have contributed, integrated and reorganized their respective resources to the Platform Company and the Licensed Companies in accordance with the terms and conditions of this Agreement, and commenced the Related Business. The specific Closing date shall be confirmed by the Parties.

 

  

2

  

	
1.2  

	
Interpretation

 

	
1.2.1  

	
The Whereas Clause hereof is an integral part of this Agreement, and shall have the same effect as the body of this Agreement. Reference to this Agreement shall mean this Cooperation Framework Agreement, as supplemented, amended, modified or changed from time to time, including the Whereas Clause and notes.

 

	
1.2.2  

	
The headings of all articles hereof are inserted for convenience only and shall not affect or limit the meaning or interpretation of this Agreement.

 

ARTICLE 2 SCOPE AND FORM OF COOPERATION

 

	
2.1  

	
Scope of Cooperation

 

The Parties hereby agree that in accordance with Article 2.2 hereof, Party B and Party C shall at first jointly establish a Platform Company, and then Party A shall pay the increased capital to the Platform Company. The Platform Company shall reorganize and integrate the advantageous resources of the Parties in the business of precious metals and the Licensed Companies, and jointly carry out the business of precious metals.

 

	
2.2  

	
Form of Cooperation

 

	
(1)  

	
Party B and Party C shall at first jointly establish a Platform Company in Shenzhen (tentative name: Shenzhen Tahoe Investment and Development Co., Ltd.), whereby the capital contributed by Party B and Party C to the Platform Company shall be 3:1.

 

	
(2)  

	
Party A shall procure its Affiliates to sell their shares of Huifu Jinyuan to the Platform Company, so that the Platform Company will indirectly hold 100% shares of Fujian Zhengjin. Once Tianjin Company has obtained the license for the business of precious metals, Party A shall procure its Affiliates to transfer and reorganize their 100% shares of Tianjin Company to the Platform Company.

 

	
(3)  

	
Party B and Party C shall procure the Platform Company to acquire 70% shares of Zhongjun Yangguang. Party B and Party C hereby represent to Party A that Zhongjun Yangguang has entered into a share purchase agreement with the existing shareholders of Henghui Precious Metals, whereby Zhongjun Yangguang shall purchase 78.57% shares of Henghui Precious Metals, so that the Platform Company will indirectly hold 55% shares of Henghui Precious Metals. Party B and Party C shall procure the Zhongjun Yangguang to purchase 78.57% shares of Henghui Precious Metals as mentioned above, and complete the registration for such change with the administration for industry and commerce.

 

	
(4)  

	
Upon completion of the aforesaid reorganization, Party A shall increase the capital of the Platform Company. Immediately upon completion of the capital increase, the shares held by Party A, Party B and Party C in the Platform Company shall be 6:3:1.

 

  

3

  

	
2.3  

	
Transaction Structure

 

Immediately upon completion of the Transaction, the shareholding structures of the Platform Company and the Licensed Companies are as listed in Schedule 1 attached hereto.

 

ARTICLE 3 COOPERATION CONDITIONS AND PRINCIPLES

 

	
3.1  

	
Cooperation Conditions

 

In order to carry out the business of precious metals, the Parties and their Affiliates shall contribute the following resources:

 

	
3.1.1  

	
The resources to be contributed or completed by Party A include:

 

	
(1)  

	
Fujian Zhengjin and its license for the business of precious metals, and for this purpose, Party A shall procure the shareholders of Huifu Jinyuan (i.e. Beijing Zhongjin Jiade Technology Co., Ltd. and Beijing Guorong Shengyuan Technology Co., Ltd.) transfer their 100% shares of Huifu Jinyuan to the Platform Company at the price of RMB Twenty-one Million One Hundred Thousand Yuan Net. For this purpose, the Parties hereby agree that, after the Platform Company is established, the Parties shall procure Beijing Zhongjin Jiade Technology Co., Ltd. and Beijing Guorong Shengyuan Technology Co., Ltd. to sign a Huifu Jinyuan Share Transfer Agreement with the Platform Company; from the date when the Huifu Jinyuan Share Transfer Agreement is entered into, the rights and obligations of all shareholders of Huifu Jinyuan shall be enjoyed and assumed by the Platform Company.

 

	
(2)  

	
Once Tianjin Company has obtained the license for the business of precious metals, Party A shall procured its Affiliates to transfer and reorganize their 100% shares of Tianjin Company to the Platform Company; and

 

	
(3)  

	
Party A shall transfer and integrate its other resources in the business of precious metals (including but not limited to manpower, equipment, monetary and other resources) into the Platform Company.

 

	
3.1.2  

	
The resources to be contributed or completed by Party B and Party C include:

 

	
(1)  

	
Henghui Precious Metals and its license for the business of precious metals: Party B and Party C shall procure the Platform Company to purchase 70% shares of Zhongjun Yangguang, and procure Zhongjun Yangguang to purchase 78.57% shares of Henghui Precious Metals and complete the registration for such change with the administration for industry and commerce, so that the Platform Company will indirectly holds 55% shares of Henghui Precious Metals; and

 

  

4

  

	
(2)  

	
Party B and Party C shall transfer and integrate their other resources in the business of precious metals (including but not limited to manpower, equipment and other resources) into the Platform Company;

 

	
(3)  

	
From the date of this Agreement, neither Party B nor Party C may engage in any business competing with the Platform Company or the Licensed Companies, except for performance of their obligations  defined herein; and

 

	
(4)  

	
Party B and Party C shall procure all their employees to be transferred to the Platform Company and the Licensed Companies to take all efforts to the Platform Company and the Licensed Companies, and strictly comply with the non-competition obligation from the Closing Date.

 

	
3.2  

	
Cooperation Principles

 

	
3.2.1  

	
Each Party and/or its Affiliates shall duly perform the arrangements herein in accordance with the applicable laws and the provisions of this Agreement (including the Schedule attached hereto).

 

	
3.2.2  

	
Each Party hereby acknowledges and agrees that the transaction arrangements hereunder are unanimously accepted by the Parties through equal negotiation and based on their true will. Each Party shall (and shall procure its Affiliates to) make its best efforts to procure the fulfillment of the transaction arrangements hereunder.

 

	
3.2.3  

	
Party B and Party C shall jointly and severally perform their responsibilities and obligations hereunder, and be jointly and severally liable to Party A.

 

	
3.3  

	
Transitional Arrangement

 

Each Party hereby acknowledges and agrees that, from the date of this Agreement, the business operation of Fujian Zhengjin shall be taken over by Party B's and Party C's teams. However, during the period from the date of this Agreement to the date when 100% shares of Huifu Jinyuan are transferred and registered to the Platform Company or the date when Party A completes its capital increase in the Platform Company and acquires 60% shares of the Platform Company (whichever is later) ("Transition Period"), no Party may carry out any of the activities without the written consent of Party A:

 

	
3.3.1  

	
To distribute profit or dispose of assets in respect of Huifu Jinyuan and/or Fujian Zhengjin, or any other activity detrimental to the interests of Huifu Jinyuan and/or Fujian Zhengjin and/or their shareholders;

 

	
3.3.2  

	
To sell, pledge, transfer or otherwise dispose of any share of Huifu Jinyuan and/or Fujian Zhengjin to any third party, unless it is for the performance of this Agreement.

 

  

5

  

ARTICLE 4 MANAGEMENT OF PLATFORM COMPANY

 

	
4.1  

	
Board of Directors

 

Immediately upon completion of the capital increase in the Platform Company by Party A, the board of directors of the Platform shall be composed of three directors, of which, one shall be appointed by Shanghai Wealth, one by Shanghai Excellence and one served by Mr. Zhou Chuifu appointed by Golden Pioneer. The Platform Company shall have one chairman, which shall be served by the director appointed by Party B (i.e. Mr. Zhou Chuifu) and through the election by the board of directors.

 

	
4.2  

	
Management Team

 

The Parties hereby confirm that, immediately upon completion of the capital increase in the Platform Company by Party A, the Platform Company shall set up a management team to take charge of the daily operation and management of the Company. The management team shall be composed of one general manager, one chief financial officer and several deputy general managers. The general manager shall be appointed or dismissed by the board of directors, and shall be accountable to the board of directors. The chief financial officer shall be nominated by the general manager, and appointed or dismissed with the approval of the board of directors.

 

	
4.3  

	
PROFIT DISTRIBUTION

 

The Parties hereby agree that the profit distribution of the Platform Company shall be decided by the board of directors.

 

ARTICLE 5 CONFIDENTIALITY

 

Each Party shall take appropriate measures to strictly keep confidentiality of all materials and information relating to execution and performance of this Agreement, and shall not disclose such materials or information to any third party (other than the professional institutions employed with the consent of the Parties and the government authorities) without the written consent of the other Parties. Each Party shall procure its employees to keep confidentiality of the trade secrets of the other Parties received or accessed to during the performance of this Agreement, and no employee of any Party may use such confidential information for any purpose other than the cooperation projects or disclose such confidential information during his performance of duties without the consent of the other Parties.

 

ARTICLE 6 BREACH AND LIABILITIES

 

If any Party ("Breaching Party") fails to perform, fulfill or properly perform any obligation under this Agreement, or violates any provision hereof (including but not limited to any representation, warranty or undertaking hereunder), whether by action or inaction, it shall be deemed as a breach. Any Party shall be entitled to the compensation for its direct losses resulting from the breach of the Breaching Party. Such damages and losses shall include all direct losses incurred or resulting from the breach of the Breaching Party, such as damages, expenditures, expenses, costs and liabilities, etc. However, such compensation shall be limited to the losses foreseen or should have been foreseen by the Breaching Party when this Agreement is executed.

 

  

6

  

ARTICLE 7 GOVERNING LAW AND DISPUTE SETTLEMENT

 

	
7.1  

	
Governing Law

 

The formation, performance and interpretation of this Agreement shall be governed by the currently effective laws of China.

 

	
7.2  

	
Dispute Settlement

 

	
7.2.1  

	
Any dispute or claim arising from or in connection with the interpretation, breach, termination or validity of this Agreement shall be first settled by the Parties through friendly negotiation. In case of any dispute, a Party shall immediately negotiate with the other Party upon receiving a written request from any other Party for negotiation. If the dispute is settled through negotiation, the representatives of the Parties in negotiation shall sign a written agreement, and the Parties hereto agree and undertake to effectuate and comply with such agreement. If no settlement can be reached through negotiation within thirty (30) days, any Party may submit the dispute to the competent court for final settlement.

 

	
7.2.2  

	
The dispute shall be submitted to the competent court of the place where the Platform Company resides.

 

	
7.2.3  

	
Survival. The dispute settlement provision of Article 7.2 shall survive after termination of this Agreement.

 

ARTICLE 8 MISCELLANEOUS

 

	
8.1  

	
Effectiveness

 

	
8.1.1  

	
This Agreement shall become effective as of being duly executed by the authorized representatives of the Parties. The effective date hereof shall be the date when this Agreement is duly executed.

 

	
8.1.2  

	
The purpose of this Agreement is to set forth the principles in respect of the Transactions accepted by the Parties. The Parties shall negotiate and execute certain specific legal documents relating to the Transaction according to the principles set forth herein.

 

	
8.1.3  

	
Such specific legal documents executed by the Parties in the future shall not go beyond the framework of principles set forth herein. Any term or condition of any specific legal document that conflicts with the provisions hereof shall be invalid.

 

  

7

  

	
8.2  

	
Amendment

 

Any amendment, supplementation or change to this Agreement shall not be valid and binding unless the same is agreed and signed by the authorized representatives of the Parties in written.

 

	
8.3  

	
Counterparts

 

This Agreement shall be made and executed in three originals, one for each Party and each has equal effect.

 

 

  

8

  

(SIGNATURE PAGE, NO TEXT CONTAINED IN THIS PAGE)

 

IN WITNESS WHEREOF, the Parties have caused their respective duly authorized representatives to execute this Agreement on the date and in the place indicated first above.

 

 

Shanghai Stockstar Wealth Management Co., Ltd.

 

(Seal)

 

Legal Representative or Authorized Representative (Signature): ____________

 

 

Golden Pioneer (Beijing) Network Technologies Co., Ltd.

 

(Seal)

 

Legal Representative or Authorized Representative (Signature): ____________

 

 

Shanghai Excellence Advertising Co., Ltd.

 

(Seal) Legal Representative or Authorized Representative (Signature): _______

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