Document:

Exhibit
10.4

 

EXECUTION
COPY  

 

 

 

July 21, 2014

Nelson Chai

c/o CIT Group Inc.

One CIT Drive

Livingston, NJ 07039

Dear Nelson,

This letter (this “Letter”) memorializes
our discussions concerning your continuing role at CIT Group Inc. (“CIT”) following the consummation of the
merger (the “Merger”) contemplated by the Agreement and Plan of Merger among CIT, IMB Holdco LLC (“OneWest”),
Carbon Merger Sub LLC and JCF III HoldCo I L.P., dated as of the date hereof (the “Merger Agreement”). We believe
that your continued service through and following the consummation of the Merger will greatly contribute to the successful integration
of CIT and OneWest and the future success of the combined enterprise.

Following the Effective Time (as defined in the Merger Agreement),
you will continue to serve as the President of North American Commercial Finance and Co-President of CIT, reporting directly to
the Chief Executive Officer of CIT, unless and until your positions are modified by the Board of Directors of CIT. In such positions,
you will have such duties and responsibilities as are assigned to you by the Chief Executive Officer of CIT from time to time,
provided such duties and responsibilities will not be inconsistent with such positions.

On the date on which the Effective Time occurs, you will be
granted a restricted stock unit award with respect to CIT common stock with a grant date fair market value of $5,000,000 (the “Retention
RSUs”). The number of shares of CIT common stock subject to the Retention RSUs will be determined based on the closing
price of CIT’s common stock on the New York Stock Exchange on the day on which the Effective Time occurs (or, if the Effective
Time occurs during a securities trading blackout period during which awards may not be made as set forth in the CIT Equity Compensation
Award Policy, on the business day following the end of the blackout period). The vesting, settlement and other terms of the Retention
RSUs shall be as set forth in the Retention RSU Award Agreement attached hereto as Exhibit A.

CIT’s obligations under this Letter will become effective
upon the occurrence of the Effective Time subject to your continued employment with CIT as of the Effective Time.

CIT Group Inc.

1 CIT Drive

Livingston, NJ 07039

    	 

    	 

    

Joseph Otting

Page 2

We thank you for your continued and dedicated service to CIT
during this period of growth and transformation.

Sincerely,

/s/ Robert J. Ingato____________________

		Name:	Robert J. Ingato

		Title:	Executive Vice President,

General Counsel and Secretary

 

    	 

    	 

    

EXHIBIT A  

CIT Group Inc.

Long-Term Incentive Plan

Retention Restricted Stock Unit Award Agreement (with Performance-Based Vesting)

	“Participant”:	Nelson Chai
	“Date of Award”:	[The closing date of the merger]
	“Number of RSUs Granted”:	[A number with a grant date value equal to $5 million]

 

Effective as of the Date of Award, this
Award Agreement sets forth the grant of Restricted Stock Units (“RSUs”) by CIT Group Inc., a Delaware corporation
(the “Company”), to the Participant, pursuant to the provisions of the Amended and Restated CIT Group Inc. Long-Term
Incentive Plan (the “Plan”). This Award Agreement memorializes the terms and conditions as approved by the Compensation
Committee of the Board (the “Committee”). All capitalized terms shall have the meanings ascribed to them in
the Plan, unless specifically set forth otherwise herein.

The parties hereto agree as follows:

		(A)	Grant of RSUs. The Company hereby
grants to the Participant the Number of RSUs Granted, effective as of the Date of Award and subject to the terms and conditions
of the Plan and this Award Agreement. Each RSU represents the unsecured right to receive one Share in the future following the
vesting of the RSU in accordance with this Award Agreement. The Participant shall not be required to pay any additional consideration
for the issuance of the Shares upon settlement of the RSUs.

		(B)	Vesting and Settlement of RSUs.

		(1)	Subject to (A) the Participant’s continued
employment with the Company and/or its Affiliates (the “Company Group”) from the Date of Award until the applicable
Vesting Date (as defined below), (B) Section (B)(2) and (C) compliance with, and subject to, the terms and conditions of this Award
Agreement, all of the RSUs granted hereunder shall vest in full on the third anniversary of the Date of Award (the “Vesting
Date”).

		(2)	As promptly as practicable following the end
of each fiscal year in the 2015 through 2017 “Performance Period” (each such fiscal year, a “Measurement
Year”), the Committee shall determine whether the Company’s cumulative Pre-Tax Income (as defined below) for the
three fiscal years ending with the applicable Measurement Year was positive (the “Performance Requirement”).
If the Performance Requirement was not met for that Measurement Year, the Committee may cancel all or a portion of the RSUs that
otherwise would have vested, after taking into account such factors as (i) the magnitude of the negative, cumulative Pre-Tax Income
(including positive or negative variance from plan), (ii) the Participant’s degree of involvement (including the degree to
which the Participant was involved in decisions that are determined to have contributed to a negative, cumulative Pre-Tax Income),
(iii) the Participant’s performance and (iv) such other factors as deemed appropriate. Any such determination will be in
the sole discretion of the Committee and will be final and binding. “Pre-Tax Income” means, with respect to
each fiscal year, the Company’s aggregate consolidated net income adjusted to exclude debt redemption charges and deferred
original issue discount deductions, as shown on the Company’s consolidated financial statements for such fiscal year, but
calculated excluding any special, unusual or non-recurring items as determined by the Committee in its sole discretion in accordance
with applicable accounting rules. 

		(3)	Each vested RSU shall be settled through the
delivery of one Share within thirty (30) days following the Vesting Date (the “Settlement Date”), provided that
the Settlement Date may be delayed, in the sole discretion of the Committee and in accordance with applicable law (including Section
409A (as defined below)), if the Committee is considering whether Sections (B)(2) and/or (L) apply to the Participant.

		(4)	The Shares delivered to the Participant on
the Settlement Date (or such date determined in accordance with Section (C) or (D)) shall not be subject to transfer restrictions
and shall be fully paid, non-assessable and registered in the Participant’s name.

		(5)	If, after the Date of Award and prior to the
Vesting Date, dividends with respect to Shares are declared or paid by the Company, the Participant shall be credited with, and
entitled to receive, dividend equivalents in an amount, without interest, equal to the cumulative dividends declared or paid on
a Share, if any, during such period multiplied by the number of unvested RSUs. Unless otherwise determined by the Committee, dividend
equivalents paid in cash shall not be reinvested in Shares and shall remain uninvested. The dividend equivalents credited in respect
of vested RSUs shall be paid in cash or Shares, as applicable, on the Settlement Date.

    	 

    	 

    

		(6)	Except for Participants who are tax residents
of Canada, in the sole discretion of the Committee and notwithstanding any other provision of this Award Agreement to the contrary,
in lieu of the delivery of Shares, the RSUs and any dividend equivalents payable in Shares may be settled through a payment in
cash equal to the Fair Market Value of the applicable number of Shares, determined on the Vesting Date or, in the case of settlement
in accordance with Section (C)(1) or (D), the date of the Participant’s “Separation from Service” (within
the meaning of the Committee’s established methodology for determining “Separation from Service” for purposes
of Section 409A) or the date of Disability, as applicable. Settlement under this Section (B)(6) shall be made at the time specified
under Sections (B)(3), (B)(5), (C)(1), (C)(2) or (D), as applicable.

		(C)	Separation from Service.

		(1)	If, after the Date of Award and prior to the
Settlement Date, the Participant incurs a Disability (as defined below) or a Separation from Service from the Company Group due
to death, each RSU, to the extent unvested, shall vest immediately and shall settle through the delivery of one Share within thirty
(30) days following the Participant’s Disability or death. The Participant (or the Participant’s beneficiary or legal
representative, if applicable) shall also be entitled to receive all credited and unpaid dividend equivalents at the time the RSUs
are settled in accordance with this Section (C)(1). “Disability” shall have the same meaning as defined in the
Company’s applicable long-term disability plan or policy last in effect prior to the first date the Participant suffers from
such Disability; provided, however, for a Participant that is a US taxpayer at any time during the period the RSUs
vest and become settled hereunder and to the extent a “Disability” event does not also constitute a “Disability”
as defined in Section 409A, such Disability event shall not constitute a Disability for purposes of this Section (C)(1).

		(2)	If, after the Date of Award and prior to an
applicable Settlement Date, the Participant incurs a Separation from Service due to the Participant’s Retirement (as defined
below) or initiated by the Company without Cause (as defined below and including, for the avoidance of doubt, in connection with
a sale of a business unit) or for Good Reason (as defined below), and, subject to the terms and conditions of the Plan and this
Award Agreement, including Section (L) below, the RSUs (and any credited and unpaid dividend equivalents), to the extent unvested
as of such Separation from Service, shall continue to vest and be settled on the Vesting Date and Settlement Date in accordance
with Sections (B)(1), (B)(2) and (B)(3) above, unless such continued vesting and settlement of RSUs (and dividend equivalents)
following the Participant’s Separation from Service is prohibited or limited by applicable law and/or regulation. “Retirement”
is defined as the Participant’s election to retire upon or after (A) attaining age 55 with at least 11 years of service with
the Company Group, or (B) attaining age 65 with at least 5 years of service with the Company Group, in each case as determined
in accordance with the Company Group’s policies and procedures. “Cause” means any of the following: (i)
the commission of a misdemeanor involving moral turpitude or a felony; (ii) the Participant’s act or omission that causes
or may reasonably be expected to cause material injury to the Company Group, its vendors, customers, business partners or affiliates
or that results or is intended to result in personal gain at the expense of the Company Group, its vendors, customers, business
partners or affiliates; (iii) the Participant’s substantial and continuing neglect of his or her job responsibilities for
the Company Group (including excessive unauthorized absenteeism); (iv) the Participant’s failure to comply with, or violation
of, the Company Group’s Code of Business Conduct; (v) the Participant’s act or omission, whether or not performed in
the workplace, that precludes the Participant’s employment with any member of the Company Group by virtue of Section 19 of
the Federal Deposit Insurance Act; and (vi) the Participant’s violation of any federal or state securities or banking laws,
any rules or regulations issued pursuant to such laws, or the rules and regulations of any securities or exchange or association
of which the Participant or a member of the Company Group is a member. “Good Reason” means, without the Participant’s
consent, (i) the Participant incurs a material diminution of his base salary (except in the event of a compensation reduction
applicable to the Participant and other employees of comparable rank and/or status); (ii) the Participant incurs a material
diminution of his duties or responsibilities from those in effect as of immediately following the Effective Time (as defined in
the Letter between the Company and the Participant, dated as of July 21, 2014 (the “Letter”)); (iii) the
Participant is reassigned to a work location that is more than fifty (50) miles from his immediately preceding work location
and which increases the distance the Participant has to commute to work by more than fifty (50) miles; or (iv) a material
breach by the Company of the Letter. A Separation from Service for Good Reason shall not occur unless (A) the Participant has provided
the Company written notice specifying in detail the alleged condition of Good Reason within thirty (30) days of the occurrence
of such condition; (B) the Company has failed to cure such alleged condition within ninety (90) days following the Company’s
receipt of such written notice; and (C) if the Committee (or its designee) has determined that the Company has failed to cure such
alleged condition, the Participant initiates a Separation from Service within five (5) days following the end of such ninety (90)-day
cure period.

		(3)	If, prior to the Vesting Date, the Participant’s
employment with the Company Group terminates for any reason other than as set forth in Section (C)(1), (C)(2) or (D), the unvested
RSUs shall be cancelled immediately and the Participant shall immediately forfeit any rights to, and shall not be entitled to receive
any payments with respect to, the RSUs including, without limitation, dividend equivalents pursuant to Section (B)(5).

		(D)	Change of Control. 

		(1)	Notwithstanding any provision contained in
the Plan or this Award Agreement to the contrary, if a Change of Control occurs before the last day of the Performance Period,
the Performance Requirement in Section (B)(2) will not apply to

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the RSUs that will vest in accordance
with this Award Agreement for any uncompleted fiscal years in the Performance Period.

		(2)	Notwithstanding any provision contained in
the Plan or this Award Agreement to the contrary, if, prior to the Settlement Date, a Change of Control occurs and within two (2)
years of such Change of Control the Participant incurs a Separation from Service (i) due to the Participant’s Retirement,
(ii) initiated by the Company without Cause or (iii) initiated by the Participant for Good Reason, the RSUs (and any credited
and unpaid dividend equivalents), to the extent unvested, shall vest upon such Separation from Service and be settled within thirty
(30) days following such Separation from Service, unless such accelerated vesting and settlement of RSUs (and dividend equivalents)
following the Participant’s Separation from Service is prohibited or limited by applicable law and/or regulation. 

		(E)	Transferability. The RSUs are
not transferable other than by last will and testament, by the laws of descent and distribution pursuant to a domestic relations
order, or as otherwise permitted under Section 12 of the Plan.

		(F)	Incorporation of Plan. The Plan
includes terms and conditions governing all Awards granted thereunder and is incorporated into this Award Agreement by reference
unless specifically stated herein. This Award Agreement and the rights of the Participant hereunder are subject to the terms and
conditions of the Plan, as amended from time to time and as supplemented by this Award Agreement, and to such rules and regulations
as the Committee may adopt under the Plan. If there is any inconsistency between the terms of this Award Agreement and the terms
of the Plan, the Plan’s terms shall supersede and replace the conflicting terms of this Award Agreement.

		(G)	No Entitlements.

		(1)	Neither the Plan nor the Award Agreement confer
on the Participant any right or entitlement to receive compensation, including, without limitation, any base salary or incentive
compensation, in any specific amount for any future fiscal year (including, without limitation, any grants of future Awards under
the Plan), nor impact in any way the Company Group’s determination of the amount, if any, of the Participant’s base
salary or incentive compensation. This Award of RSUs made under this Award Agreement is completely independent of any other Awards
or grants and is made at the sole discretion of the Company. The RSUs do not constitute salary, wages, regular compensation, recurrent
compensation, pensionable compensation or contractual compensation for the year of grant or any prior or later years and shall
not be included in, nor have any effect on or be deemed earned in any respect, in connection with the determination of employment-related
rights or benefits under law or any employee benefit plan or similar arrangement provided by the Company Group (including, without
limitation, severance, termination of employment and pension benefits), unless otherwise specifically provided for under the terms
of such plan or arrangement or by the Company Group. The benefits provided pursuant to the RSUs are in no way secured, guaranteed
or warranted by the Company Group.

		(2)	The RSUs are awarded to the Participant by
virtue of the Participant’s employment with, and services performed for, the Company Group. The Plan or the Award Agreement
does not constitute an employment agreement. Nothing in the Plan or the Award Agreement shall modify the terms of the Participant’s
employment, including, without limitation, the Participant’s status as an “at will” employee of the Company Group,
if applicable.

		(3)	Subject to the terms of any applicable employment
agreement, the Company reserves the right to change the terms and conditions of the Participant’s employment, including the
division, subsidiary or department in which the Participant is employed. None of the Plan or the Award Agreement, the grant of
RSUs, nor any action taken or omitted to be taken under the Plan or the Award Agreement shall be deemed to create or confer on
the Participant any right to be retained in the employ of the Company Group, or to interfere with or to limit in any way the right
of the Company Group to terminate the Participant’s employment at any time. Moreover, the Separation from Service provisions
set forth in Section (C) or (D), as applicable, only apply to the treatment of the RSUs in the specified circumstances and shall
not otherwise affect the Participant’s employment relationship. By accepting this Award Agreement, the Participant waives
any and all rights to compensation or damages in consequence of the termination of the Participant’s office or employment
for any reason whatsoever to the extent such rights arise or may arise from the Participant’s ceasing to have rights under,
or be entitled to receive payment in respect of, any unvested RSUs that are cancelled or forfeited as a result of such termination,
or from the loss or diminution in value of such rights or entitlements, including by reason of the operation of the terms of the
Plan, this Award Agreement or the provisions of any statute or law to taxation. This waiver applies whether or not such termination
amounts to a wrongful discharge or unfair dismissal.

		(H)	No Rights as a Stockholder.
The Participant will have no rights as a stockholder with respect to Shares covered by this Award Agreement (including voting
rights) until the date the Participant or his nominee becomes the holder of record of such Shares on the Settlement Date or as
provided in Section (C) or (D), if applicable.

		(I)	Securities Representation. The
grant of the RSUs and issuance of Shares upon vesting of the RSUs shall be subject to, and in compliance with, all applicable requirements
of federal, state or foreign securities law. No Shares may be issued hereunder if the issuance of such Shares would constitute
a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any
stock exchange or market system upon which the Shares may then be listed. As

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a condition to the settlement of
the RSUs, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence
compliance with any applicable law or regulation.

The Shares are being issued to the
Participant and this Award Agreement is being made by the Company in reliance upon the following express representations and warranties
of the Participant. The Participant acknowledges, represents and warrants that:

		(1)	He or she has been advised that he or she may be an “affiliate” within the meaning
of Rule 144 under the Securities Act of 1933, as amended (the “Act”), and in this connection the Company is
relying in part on his or her representations set forth in this section (I)(1); and

		(2)	If he or she is deemed an affiliate within the meaning of Rule 144 of the Act, the Shares must
be held indefinitely unless an exemption from any applicable resale restrictions is available or the Company files an additional
registration statement (or a “re-offer prospectus”) with regard to such Shares and the Company is under no obligation
to register the Shares (or to file a “re-offer prospectus”).

		(3)	If he or she is deemed an affiliate within the meaning of Rule 144 of the Act, he or she understands
that the exemption from registration under Rule 144 will not be available unless (i) a public trading market then exists for the
Shares of the Company, (ii) adequate information concerning the Company is then available to the public, and (iii) other terms
and conditions of Rule 144 or any exemption therefrom are complied with; and that any sale of the Shares may be made only in limited
amounts in accordance with such terms and conditions.

		(J)	Notices. Any notice or communication
given hereunder shall be in writing and shall be deemed to have been duly given when delivered in person or mailed by certified
mail, postage and fees prepaid, or internationally recognized express mail service, as follows:

If to the Company, to:

CIT Group Inc.

1 CIT Drive

Livingston, New Jersey 07039

Attention: Senior Vice President, Compensation and Benefits

If to the Participant, to the address on file with the Company
Group.

 

		(K)	Transfer of Personal Data.
In order to facilitate the administration of this Award, it will be necessary for the Company Group to collect, hold, and process
certain personal information about the Participant. As a condition of accepting this Award, the Participant authorizes, agrees
and unambiguously consents to the Company Group collecting, using, disclosing, holding and processing personal data and transferring
such data to third parties (collectively, the “Data Recipients”) for the primary purpose of the Participant’s
participation in, and the general administration of, the Plan and to the transmission by the Company Group of any personal data
information related to the RSUs awarded under this Award Agreement, as required in connection with the Participant’s participation
in the Plan (including, without limitation, the administration of the Plan) out of the Participant’s home country and including
to countries with less data protection than the data protection provided by the Participant’s home country. This authorization
and consent is freely given by the Participant. The Participant acknowledges that he/she has been informed that upon request, the
Company will provide the name or title and contact information for an officer or employee of the Company Group who is able to answer
questions about the collection, use and disclosure of personal data information.

		(1)	The Data Recipients will treat the Participant’s personal data as private and confidential
and will not disclose such data for purposes other than the management and administration of this Award and will take reasonable
measures to keep the Participant’s personal data private, confidential, accurate and current.

 

		(2)	Where the transfer is to a destination outside the country to which the Participant is employed,
or outside the European Economic Area for Participants employed by the Company Group in the United Kingdom or Ireland, the Company
shall take reasonable steps to ensure that the Participant’s personal data continues to be adequately protected and securely
held. By accepting this Award, the Participant acknowledges that personal information about the Participant may be transferred
to a country that does not offer the same level of data protection as the country in which the Participant is employed.

 

		(L)	Cancellation; Recoupment; Related Matters.

		(1)	In the event of a material restatement of
the Company’s financial statements, the Committee (or its designee) shall review those facts and circumstances underlying
the restatement that the Committee (or its designee) determines in its sole discretion as relevant (which may include, without
limitation, the Participant’s status and responsibility within the organization, any potential wrongdoing by the Participant
and whether the restatement was the result of negligence, intentional or gross misconduct or other conduct, including any acts
or failures to act, detrimental to the Company insofar as it caused material financial or reputational harm to the Company or its
business activities), and the Committee (or its designee), in its sole discretion, may direct the Company (i) to cancel any outstanding
RSUs

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(whether or not vested), and the Participant
shall forfeit any rights to such cancelled RSUs and / or (ii) to recover from the Participant an amount equal to the Fair Market
Value (determined as of the Settlement Date) of the net number of Shares distributed to the Participant pursuant to this Award
Agreement within the twelve (12) months immediately preceding the Committee’s determination.

		(2)	In the event that the Committee (or its designee),
in its sole discretion, determines that this grant of RSUs was based, in whole or in part, on materially inaccurate financial or
performance metrics for any period preceding the granting of this Award, whether or not a financial restatement is required and
whether or not the Participant was responsible for the inaccuracy, then the Committee (or its designee), in its sole discretion,
may direct the Company (i) to cancel any outstanding RSUs (whether or not vested), and the Participant shall forfeit any rights
to such cancelled RSUs, and / or (ii) to recover from the Participant an amount equal to the Fair Market Value (determined as of
the Settlement Date) of the net number of Shares distributed to the Participant pursuant to this Award Agreement within the twelve
(12) months immediately preceding the Committee’s determination.

		(3)	In the event that the Committee (or its designee),
in its sole discretion, determines at any time that the Participant has failed to comply with the Company’s risk policies
or standards and/or failed to properly identify, raise or assess, in a timely manner and as reasonably expected, risks and/or concerns
with respect to risks material to the Company or its business activities, then the Committee (or its designee), in its sole discretion,
may direct the Company (i) to cancel any outstanding RSUs (whether or not vested), and the Participant shall forfeit any rights
to such cancelled RSUs, and / or (ii) to recover from the Participant an amount equal to the Fair Market Value (determined as of
the Settlement Date) of the net number of Shares distributed to the Participant pursuant to this Award Agreement within the twelve
(12) months immediately preceding the Committee’s determination.

		(4)	In the event that the Committee (or its designee),
in its sole discretion, determines at any time that the Participant has breached any provisions relating to non-competition, non-solicitation,
confidential information or inventions or proprietary property in any employment agreement or other agreement in effect between
the Participant and the Company or an Affiliate during the Participant’s employment or the period following the Participant’s
Separation from Service from the Company Group specified in the applicable agreement, then the Committee (or its designee), in
its sole discretion, may direct the Company (a) to cancel any outstanding RSUs (whether or not vested), and the Participant shall
forfeit any rights to such cancelled RSUs, and / or (b) to recover from the Participant an amount equal to the Fair Market Value
(determined as of the Settlement Date) of the net number of Shares distributed to the Participant pursuant to this Award Agreement
within the twelve (12) months immediately preceding the Committee’s determination and any credited and unpaid dividend equivalents
with respect to such Shares to the Participant (and the Participant shall forfeit any rights to such Shares and any credited and
unpaid dividend equivalents).

		(5)	In the event the Committee (or its designee),
in its sole discretion, determines at any time that the Participant has engaged in “Detrimental Conduct” (as defined
below) or violated any of the Company Policies (as defined below) during the Participant’s employment, including if such
determination is made following the Participant’s termination of employment, then the Committee (or its designee), in its
sole discretion, may direct the Company (i) to cancel any outstanding RSUs (whether or not vested), and the Participant shall forfeit
any rights to such cancelled RSUs and / or (ii) to recover from the Participant an amount equal to the Fair Market Value (determined
as of the Settlement Date) of the net number of Shares distributed to the Participant pursuant to this Award Agreement within the
12 months immediately preceding the Committee’s determination. “Detrimental Conduct” shall mean: (i) any
conduct that would constitute “cause” under the Participant’s employment agreement or similar agreement with
the Company or its Affiliates, if any, or if the Participant’s employment has terminated and the Committee discovers thereafter
that the Participant’s employment could have or should have been terminated for Cause; or (ii) fraud, gross negligence,
or other wrongdoing or malfeasance. “Company Policies” shall mean the Company policies and procedures in effect
from time to time, including, without limitation, policies and procedures with respect to the Company’s “Regulatory
Credit Classifications” (as defined in the Company’s Annual Report on Form 10-K filed with the Securities Exchange
Commission on February 27, 2014 (the “Form 10-K”)), and as amended from time to time, and any credit risk policies
and procedures in effect from time to time.

		(6)	Notwithstanding anything contained in the
Plan or this Award Agreement to the contrary, to the extent that the Company is required by law to include any additional recoupment,
recovery or forfeiture provisions to outstanding Awards, then such additional provisions shall also apply to this Award Agreement
as if they had been included as of the Date of Award and in the manner determined by the Committee in its sole discretion.

		(7)	The remedies provided for in this Award Agreement
shall be cumulative and not exclusive, and the Participant agrees and acknowledges that the enforcement by the Company of its rights
hereunder shall not in any manner impair, restrict or limit the right of the Company to seek injunctive and other equitable or
legal relief under applicable law or the terms of any other agreement between the Company and the Participant.

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		(M)	Miscellaneous.

		(1)	It is expressly understood that the Committee
is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and
this Award Agreement, all of which shall be binding upon the Participant.

		(2)	The Board may at any time, or from time to
time, terminate, amend, modify or suspend the Plan, and the Board or the Committee may amend or modify this Award Agreement at
any time; provided, however, that, except as provided herein, no termination, amendment, modification or suspension
shall materially and adversely alter or impair the rights of the Participant under this Award Agreement, without the Participant’s
written consent.

		(3)	This Award Agreement is intended to comply
with, or be exempt from, Section 409A of the Code and the regulations and guidance promulgated thereunder (“Section 409A”),
and accordingly, to the maximum extent permitted, this Award Agreement shall be interpreted in a manner intended to be in compliance
therewith. In no event whatsoever shall the Company Group be liable for any additional tax, interest or penalty that may be imposed
on the Participant by Section 409A or any damages for failing to comply with Section 409A. If any provision of the Plan or the
Award Agreement would, in the sole discretion of the Committee, result or likely result in the imposition on the Participant, a
beneficiary or any other person of additional taxes or a penalty tax under Section 409A, the Committee may modify the terms of
the Plan or the Award Agreement, without the consent of the Participant, beneficiary or such other person, in the manner that the
Committee, in its sole discretion, may determine to be necessary or advisable to avoid the imposition of such penalty tax. Notwithstanding
anything to the contrary in the Plan or the Award Agreement, to the extent that the Participant is a “Specified Employee”
(within the meaning of the Committee’s established methodology for determining “Specified Employees” for
purposes of Section 409A), payment or distribution of any amounts with respect to the RSUs that are subject to Section 409A will
be made as soon as practicable following the first business day of the seventh month following the Participant’s Separation
from Service from the Company Group or, if earlier, the date of the Participant’s death. 

		(4)	Delivery of the Shares underlying the RSUs
or payment in cash (if permitted pursuant to Section (B)(6)) upon settlement is subject to the Participant satisfying all applicable
federal, state, provincial, local, domestic and foreign taxes and other statutory obligations (including, without limitation, the
Participant’s FICA obligation, National Insurance Contributions or Canada Pension Plan contributions, as applicable). The
Company shall have the power and the right to (i) deduct or withhold from all amounts payable to the Participant pursuant to the
RSUs or otherwise, or (ii) require the Participant to remit to the Company, an amount sufficient to satisfy any applicable taxes
required by law. The Company may permit or require the Participant to satisfy, in whole or in part, the tax obligations by withholding
Shares that would otherwise be received upon settlement of the RSUs. 

		(5)	The Company may at any time place legends
referencing any applicable federal, state or foreign securities law restrictions on all certificates representing Shares issued
pursuant to this Award Agreement. The Participant shall, at the request of the Company, promptly present to the Company any and
all certificates representing Shares acquired pursuant to this Award Agreement in the possession of the Participant.

		(6)	This Award Agreement shall be subject to all
applicable laws, rules, guidelines and regulations, and to such approvals by any governmental agencies or national securities exchanges
as may be required, or the Committee determines are advisable, including but not limited to any applicable laws or the rules, codes
or guidelines of any statutory or regulatory body in any jurisdiction relating to the remuneration of any Participant (in each
case as may be in force from time to time). The Participant agrees to take all steps the Company determines are necessary to comply
with all applicable provisions of federal, state and foreign securities law in exercising his or her rights under this Award Agreement.

		(7)	Nothing in the Plan or this Agreement should
be construed as providing the Participant with financial, tax, legal or other advice with respect to the RSUs. The Company recommends
that the Participant consult with his or her financial, tax, legal and other advisors to provide advice in connection with the
RSUs.

		(8)	All obligations of the Company under the Plan
and this Award Agreement, with respect to the Awards, shall be binding on any successor to the Company, whether the existence of
such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all
of the business and/or assets of the Company.

		(9)	To the extent not preempted by federal law,
this Award Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware.

		(10)	This Award Agreement may be executed in one
or more counterparts, all of which taken together shall constitute one contract.

		(11)	The Participant agrees that the Company may,
to the extent permitted by applicable law and as provided for in Section 17(g) of the Plan, retain for itself securities or funds
otherwise payable to the Participant pursuant to this Award Agreement, or any other Award Agreement under the Plan, to satisfy
any obligation or debt that the Participant

    	6

    	 

    

owes the Company or its affiliates
under any Award Agreement, the Plan or otherwise; provided that the Company may not retain such funds or securities and set off
such obligations or liabilities until such time as they would otherwise be distributable to the Participant, and to the extent
that Section 409A is applicable, such offset shall not exceed the maximum offset then permitted under Section 409A.

		(12)	The Participant acknowledges that if he or
she moves to another country during the term of this Award Agreement, additional terms and conditions may apply and as provided
for in Section 17(f) of the Plan and the Company reserves the right to impose other requirements to the extent the Company determines
it is necessary or advisable in order to comply with local law or facilitate the administration of the Award Agreement. The Participant
agrees to sign any additional agreements or undertaking that may be necessary to accomplish the foregoing.

		(13)	The Participant acknowledges that he or she
has reviewed the Company Policies, understands the Company Policies and agrees to be subject to the Company Policies that are applicable
to the Participant, including, without limitation, the Regulatory Credit Classifications and any credit risk policies in effect
from time to time.

		(14)	The Participant acknowledges that the Company
is subject to certain regulatory restrictions that may, under certain circumstances, prohibit the accelerated vesting and distribution
of any unvested RSUs as a result of, or following, a Participant’s Separation from Service.

		(15)	The Participant acknowledges that his or her
participation in the Plan as a result of this Award Agreement is further good and valuable consideration for the Participant’s
obligations under any non-competition, non-solicitation, confidentiality or similar agreement between the Participant and the Company.

		(16)	Neither this Award Agreement or the Shares
that may be awarded hereunder represent any right to the payment of earned wages, and the rights of the Participant with respect
to any Shares remains fully contingent and subject to the vesting and other terms and conditions of this Award Agreement.

		(17)	Any cash payment made pursuant to Section
(B)(5) or (B)(6) of this Award Agreement shall be calculated, where necessary, by reference to the prevailing U.S. dollar exchange
rate on the proposed payment date (as determined by the Committee in its sole discretion).

		(N)	Acceptance of Award. By accepting
this Award of RSUs, the Participant is agreeing to all of the terms contained in this Award Agreement. The Participant may accept
this Award by indicating acceptance by e-mail or such other electronic means as the Company may designate in writing or by signing
this Award Agreement if the Company does not require acceptance by email or such other electronic means. If the Participant desires
to refuse the Award, the Participant must notify the Company in writing. Such notification should be sent to CIT Group Inc., Attention:
Senior Vice President, Compensation and Benefits, 1 CIT Drive, Livingston, New Jersey 07039, no later than thirty (30) days after
the Date of Award. If the Participant declines the Award, it will be cancelled as of the Date of Award.

 

IN WITNESS WHEREOF, this Award
Agreement has been executed by the Company by one of its duly authorized officers as of the Date of Award.

 

CIT Group Inc.

 

 

 

[Name]

[Title]

 

 

Accepted
and Agreed:

 

<<Electronic Signature>>

<<Acceptance Date>>

    	7Exhibit 4.29

 

Equity Transfer Agreement

 

This Equity Transfer Agreement (the “Agreement”) is entered into by and among the following parties in Shanghai, the People’s Republic of China, on December 30, 2013:

 

Qian Hui (“Transferor”)

 

ID No.: 340102196811301522

 

Shanghai iKang Guobin Holding Co. Ltd.  (“Transferee”)

 

Address: 30/F, Tower 1, Kerry Everybright City, 218 Tianmu West Road, Shanghai

 

Shanghai Huajian Clinic Ltd. (“Target Company”)

 

Address: 5/F, Block B, Eton Place, 555 Pudong Avenue, Shanghai

 

Each of the Transferor, the Transferee and the Target Company will be referred to as a “Party”, and they are collectively referred to as the “Parties”.

 

WHEREAS,

 

1.              The Target Company is a limited liability company duly organized and validly existing according to the laws of the PRC. As of the Execution Date of this Agreement, the Transferor lawfully holds 33% of the equity interest in the Target Company (the “Target Equity”), and intends to transfer such Target Equity to the Transferee;

 

2.              The registered capital of the Target Company is RMB 12 million, which is fully paid up. The Target Company operates, and holds 100% of the equity interest in, 3 clinics (health examination centers) in Shanghai, which are respectively (1) Shanghai Huajian Clinic Co., Ltd., with the address at 3/F, Block B, Ming Garden Business Center, No. 118 Jiashan Road (Fuxing Middle Road Intersection), Shanghai; (2) Shanghai Jinxiu Huajian Clinic Co., Ltd., with the address at 2/F, Yujingfang, No. 545, Pudong Avenue, Shanghai; (3) Shanghai Jinshen Huajian Clinic Co., Ltd., with the address at 15 Building, No. 1000, Jinshai Road, Shanghai. The register capital of each of the above three clinics (health examination centers) is RMB 6 million, and has been fully paid up.

 

 

3.              As indicated in the annual audit report of the Target Company for 2012, the consolidated income of the Target Company together with its subordinated three clinics (health examination centers) was RMB 70 million, and the consolidated profit was RMB 6.56 million. For the year of 2013, the consolidated income of the Target Company together with its subordinated three clinics (health examination centers) was RMB 80 million, and the consolidated profit was about RMB 8 million to RMB 10 million.

 

4.              The Parties hereby agree that the Transferor will transfer, and the Transferee will accept, the Target Equity held by the Transferor (the “Equity Transfer”).

 

NOW THEREFORE, according to the laws of the PRC, the Parties, through friendly negotiation and in the principles of equality and mutual benefits, have reached the following agreement:

 

Article 1 Definitions

 

Except as otherwise expressly provided for in this Agreement, the following terms have the meanings set forth below:

 

1.1         “Target Company” means Shanghai Huajian Clinic, Ltd., a limited liability company duly organized and validly existing according to the laws of the PRC.

 

1.2         “Target Equity” means the 33% of equity interest held legally by the Transferor in the Target Company.

 

1.3         “Equity Transfer” means the transaction arrangement whereby the Transferor transfers the Target Equity to the Transferee according to the provisions of this Agreement.

 

1.4         “Execution Date” means the date on which the Parties hereto duly sign or seal this Agreement.

 

1.5         “Business Day” means any day other than (i) a Saturday or Sunday, (ii) any PRC public holiday, or (iii) any day on which the banks in the PRC have the right to or are required to stop business according to the law of the PRC.

 

1.6         “Affiliate” means, with respect to any enterprise or natural person, any other enterprise or natural person that, directly or indirectly, controls, is controlled by, or under common control with such enterprise or natural person, including any enterprise and natural person Affiliated to such enterprise or natural person, the scope of which will be governed with reference to the Disclosure of Affiliates, No. 36 of Enterprise Accounting Principles. In this Agreement, “control” means holding no less than 50% common shares with voting right at the general meeting of the shareholders, or having the power to appoint the majority of the directors in the board of the Target Company.

 

 

1.7         “Transitional Period” means the period commencing from the Execution Date hereof through the Closing Date.

 

1.8         “Group Companies” refers to, collectively, the Target Company and its wholly owned subsidiaries, i.e. Shanghai Huajian Clinic Co., Ltd., Shanghai Jinxiu Huajian Clinic Co., Ltd., and Shanghai Jinshen Huajian Clinic Co., Ltd.

 

1.9        “Closing Date” has the meaning set forth in Section 7.1 hereof.

 

1.10                        “Transaction Documents” mean all the documents executed by the Transferor, the Transferee and other related parties for the purpose of this Equity Transfer and other transactions.

 

1.11                        “PRC” means the People’s Republic of China, excluding, for purpose of this Agreement, Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan.

 

1.12                        “Equity Transfer Price” means the price paid by the Transferee to the Transferor with respect to the Equity Transfer according to Article 5 hereof.

 

1.13                        “Intellectual Property Rights” mean any or all of the following rights and any or all of the rights arising from or relating to the following rights: (i) all patents (including all patents and patent applications); (ii) all trademarks and trademark rights, service marks and service mark rights, trade names and trade name rights, service names and service name rights (including all good will, rights under common law and government or other relevant registration or registration application), design, product appearance, brand name, enterprise and product name, internet domain; (ii) all copyrights and author’s rights; (iv) all rights in unique database, ideas, inventions (whether patentable or not), know-how, trade secret, database; (v) all the computer software, including all source codes, object codes, records and data, as well as all the media recording the aforesaid content.

 

1.14                        “material” means, unless otherwise provided for, an amount of RMB 1 million for one transaction (time/piece) or an aggregate amount equivalent to RMB 5 million for more than one transactions within one year (including but not limited to the subject matter amount of any contract or arrangement, or the amount of actual enforcement of any agreement or arrangement), or any amount accounting for 5% of the net assets of the Group Companies, whichever is lower.

 

1.15                        “Material Adverse Effect” means in this Agreement, unless otherwise provided for, any singe occurrence that results in the direct loss in an amount of more than RMB 3 million or occurrences in aggregate that results in the direct loss of more than RMB 5 million within one year; any circumstance that causes disruption or termination of the business of the Group Companies; or other circumstances that have adverse effects in respect of the qualification, operation, financial condition etc. of the Group Companies on the continuous and stable operation of the Group Companies, and that cannot be eliminated within 30 natural days.

 

 

Article 2 Equity Transfer

 

2.1   The Transferor agrees to transfer the Target Equity to the Transferee according to the terms and conditions hereof. The Transferee agrees to accept the Target Equity held by the Transferor according to the terms and conditions hereof, and will pay the consideration for the Equity Transfer as agreed upon herein.

 

Article 3 Representations and Warranties

 

3.1       Except for the matters disclosed to the Transferee and the Target Company in Exhibit I hereto, the Transferor and the Target Company jointly and severally warrant that the representations and warranties in Exhibit II hereto are correct and accurate in all aspects as of the Execution Date hereof and Closing Date. If any change occurs to such representations and warranties during the above period, the Transferor and the Target Company are obligated to make additional disclosure to the Transferee and obtain the consent of the Transferee.

 

3.2       The Transferee represents and warrants to the Transferor and the Target Company as follows:

 

3.2.1         The Transferee is a company duly organized and validly existing, which has full legal rights and necessary power and authority to take all necessary actions to execute and deliver this Agreement and to fully perform its obligations hereunder.

 

3.2.2         This Agreement will become effective upon execution by the Parties and constitute legal, valid and binding obligations of the Transferee according to its terms.

 

Article 4 Obligations of the Parties

 

4.1       The Transferor agrees to procure the Target Company to amend the register of shareholders and the articles of association of the Target Company as soon as possible from the Execution Date, and procure the Target Company to complete the change of registration with respect to Target Equity transfer with the industrial and commercial authority and the registrations with other relevant departments.

 

4.2      The Transferee is obligated to pay the consideration for the Equity Transfer timely, and comply with other obligations hereunder.

 

 

Article 5 Transfer Price and Payment

 

5.1       The Parties agree to determine the equity transfer price (“Equity Transfer Price”) as follows: the pricing will be based on the reference price, i.e., the total valuation of the Target Company in an amount of RMB 120 million; as of the reference date, December 31, 2013 (“Reference Date”), if the difference of the Target Company between its creditor’s right and its debt is positive, the sum of such positive amount and RMB 120 million will be determined as the total Equity Transfer Price; if the difference is negative, such negative amount will be deducted from the amount of RMB 120 million, and the Equity Transfer Price will be determined on pro rata basis of the 33% of the equity interest held by Qian Hui in the Target Company. The pricing formula is as follows: Equity Transfer Price = (RMB 120 million +/- difference between its creditor’s right and its debt as of the Reference Date) *33%, among which, the creditor’s right includes the book funds, bank interest, foreign investment proceeds, receivables etc., and the debt includes long-term/short-term borrowings, payables in whatever form, advanced receipts etc. The difference between its creditor’s right and its debt as of the Reference Date will be audited and determined by the same offshore certified public accountant (“CPA”) as engaged by the Transferee. The expansion of and the purchase of CT equipment by Shanghai Jinxiu Huajian Clinic Co, Ltd. will reduce its capital. The parties agree that such reduction will not have any adverse effect on the calculation of the creditor’s right and the debt of the Target Company.

 

5.2       The Transferee will pay 30% of the Equity Transfer Price within 3 Business Days from the Execution Date hereof (if the difference between creditor’s right and debt on the Reference Date has not been determined by the CPA, RMB 11.88 million will be paid), will pay 60% of the Equity Transfer Price within 3 Business Days upon the issuance of the business license with the change of industrial and commercial registration (if the difference between creditor’s right and debt on the Reference Date has not been determined by the CPA, RMB 23.76 million will be paid), and will pay the balance of the Equity Transfer Price within 10 Business Days following the date on which the business license with the change of industrial and commercial registration is issued and the audit is completed as set forth in Section 5.1 (which shall be no later than the expiration of the 3 months following the Execution Date of this Agreement), subject to the provisions of the Transaction Document.

 

5.3       The Parties agree that, given that the Transferee has paid the transaction deposit of RMB 1 million to the Transferor, the Transferee may deduct such deposit from the first installment of Equity Transfer Price when it pays such first installment.

 

5.4       Unless the Parties negotiate and agree otherwise in writing, the Transferee will pay the transfer price in RMB to the bank account designated by the Transferor.

 

 

Article 6 Closing Conditions for Equity Transfer

 

6.1       On the Execution Date and Closing Date hereof, the Target Company and the Transferor warrant that relevant representations and warranties they made hereunder and all documents provided to the Transferee shall remain true, correct and complete, and no Material Adverse Effect has occurred, and there is no restriction, prohibition or Material Adverse Effect that may cause cancellation of this Equity Transfer, or event that has had or will have any Material Adverse Effect on the Group Companies, the Transferee and this Equity Transfer, or that has or is expected reasonably to have any Material Adverse Effect on the operation, financial condition or assets of the Group Companies.

 

6.2       The Target Company and the Transferor shall, in good faith, use their best efforts to satisfy the following transaction closing conditions to be fulfilled by the Target Company and the Transferor, no later than the expiration of 30 days following the Execution Date hereof or otherwise agreed upon by the Parties:

 

6.2.1                     The board and shareholder’s general meeting of the Target Company have respectively adopted the resolutions with respect to this Equity Transfer, and provided copies of such resolutions to the Transferee, and the signatory of the Target Company who signs the Transaction Documents has been duly authorized;

 

6.2.2                     The change of industrial and commercial registration with respect to this Equity Transfer has been completed;

 

6.2.3                     The articles of association amended according to the terms and conditions hereof substantially in the form and substance of Exhibit III has been adopted by the Target Company through resolution of the shareholder’s general meeting;

 

6.2.4                     The Group Companies have no material adverse change in respect of business, technology, legal and financial conditions etc.;

 

6.2.5                     The Transferor will use its best efforts to procure that the senior management (including general manager, vice general manager and the persons at certain levels) have signed an employment contract with the Group Companies in compliance with current labor laws and regulations, including but not limited to the confidentiality provisions and the non-competition provisions for a period of at least 2 years. If some of the senior management fail to sign the above employment contracts within the Transitional Period, the Transferor will use its best efforts to identify appropriate alternatives, to ensure stable business management and operation of the Group Companies;

 

6.2.6                     All representations and warranties of the Target Company and the Transferor shall remain true and valid in all material aspects, without any material adverse change;

 

 

6.2.7                     The Target Company and the Transferor shall, in all material aspects, comply with and actually perform various covenants, undertakings and obligations under this Agreement or other Transaction Documents to be fulfilled or complied with during the Transitional Period or on the Closing Date.

 

Upon completion of the legal or financial due diligence by the Transferee, if it is indicated that any change has occurred to the Group Companies prior to the Closing Date, which may cause a Material Adverse Effect on the Group Companies, or if the Transferee is aware of any facts that occurred or existed prior to the execution of this Agreement and may have a Material Adverse Effect on the Equity Transfer, the Parties agree to supplement other closing conditions with respect to the existing risks.

 

6.3      The Target Company and the Transferor undertake that they will use their best reasonable efforts to ensure the conditions precedent that they are liable to fulfill under Section 6.2 to be satisfied as soon as possible.

 

Article 7 Closing and Matters after Closing

 

7.1       Closing and Closing Date

 

The Closing Date shall be the 2nd Business Day following the satisfaction, waiving or becoming post-closing obligations of the closing conditions under Section 6.2 hereof (“Closing Date”).

 

7.2       Pre-Closing Matters and Closing Procedure

 

7.2.1         Within 7 Business Days from the Execution Date hereof, the Transferor and the Target Company will submit relevant application materials to the industrial and commercial authority with respect to the Equity Transfer, and the Transferee shall provide its documents relating to the Equity Transfer.

 

7.3       On the Closing Date, the Transferee will become a shareholder of the Target Company, and is entitled to exercise any rights and interests relating to the Target Equity, including but not limited to shareholder’s voting right, right to dividend and any other rights conferred by this Agreement, the articles of association and other documents.

 

Article 8 Arrangement during Transitional Period

 

8.1                   The Transferor shall procure the Target Company carries out the business within normal course during the Transitional Period consistent with the business conducted all the time by the Group Companies. During the Transitional Period, the Transferor shall procure the Group Companies to comply with the following requirements, and the Target Company shall procure the Group Companies to:

 

 

8.1.1                     Use its best efforts to:

 

(i)             maintain the current business structure and reputation undamaged;

 

(ii)          except for normal severance or retirement consistent with the practice in the past, retain the existing senior management to continue their service for the Group Companies;

 

(iii)       maintain the assets and properties of the Group Companies in good working conditions, procure them to work normally and depreciate or amortize according to the Chinese accounting principles on reasonable basis;

 

(iv)      sustain good appraisal from clients, suppliers and other third parties to which the Group Companies provide service;

 

(v)         continue with all the sales, marketing and promotional events carried out at present time with respect to business and operation of the Group Companies;

 

(vi)      maintain or sustain all the approvals, consents, authorizations and permits required for its establishment and the business specified in the business license.

 

8.1.2         Maintain the accounts and accounting records of the Group Companies in normal or customary manners, and will not change the financial system without the consent of the Transferee.

 

8.1.3         Communicate with the Transferee regularly or from time to time at the request of the Transferee in connection with the operation and management of the Group Companies.

 

8.1.4         Comply with all the laws applicable to the business and operation. If any violation of applicable laws and regulations occurs, it will immediately notify the Transferee of such violations upon its awareness of the same.

 

8.2                   During the period, without prejudice to the provisions of Section 8.1 hereof, and subject to the confidentiality obligations and without affecting the normal operation of the Group Companies, Transferor and the Target Company shall procure the Group Companies to permit the access of the Transferee and its representatives  to the office and the senior management of the Group Companies, upon reasonable prior notice and in normal business hours, to discuss business, matters, financial and accounting issues of the Group Companies, and to provide solutions, suggestions and advice.

 

8.3                   The Transferor and the Target Company jointly undertake that, without written consent of the Transferee, the Group Companies shall not, during the Transitional Period,

 

8.3.1                     Amend the articles of association or other constitutional documents;

 

 

8.3.2                     Increase or reduce registered capital;

 

8.3.3                     Conduct any equity transfer other than that contemplated in the Transaction Documents;

 

8.3.4                     Carry out any merger, integration or disposal of any assets in an amount of more than RMB 1 million, except in the ordinary course of business operation;

 

8.3.5                     Dissolve or liquidate, or carry out capital restructuring or reorganization in any form, or do anything that may result in change of control (including creation of pledge over the equity in any Group Company held by it directly or indirectly);

 

8.3.6                     Authorize or issue any securities, including any equity securities, corporate bonds, options or option commitment;

 

8.3.7                     Purchase or dispose of any equity of any entity, or merge with any other entity or participate in any joint venture;

 

8.3.8                     Modify any accounting policy, rules or principles of any Group Company;

 

8.3.9                     Make any change to the business nature, or make any change to organizational structure that may affect current qualifications, operation or financial conditions of the Group Companies, stop or termination of all or part of the business; or enter new business area;

 

8.3.10              Declare or pay any dividend or other forms of distribution;

 

8.3.11              Conduct any transaction with any Affiliate other than that contemplated in Transaction Documents (except for any connected transaction currently carried out and disclosed by the Group Companies), or modify any existing connected transaction agreement;

 

8.3.12              Waive a single creditor’s right in an amount of more than RMB 1 million or multiple creditor’s rights in an aggregate amount of RMB 1 million within the Transitional Period;

 

8.3.13              Except for those disclosed, incur a single debt in an amount of more than RMB 2 million or multiple debts in an aggregate amount of more than RMB 2 million in the Transitional Period, except for: 1) the payable accounts in the ordinary course of business operation; 2) tax liabilities of the Group Companies;

 

8.3.14              Provide a single guarantee in an amount of more than RMB 500,000 or multiple guarantees in an aggregate amount of more than RMB 500,000 in the Transitional Period;

 

8.3.15              Obtain any loan other than the loan of working capital required for daily operation of the Group Companies;

 

 

8.3.16              incur any kind of debt beyond the daily operation of the Group Companies;

 

8.3.17              Transfer, sell or dispose of any fixed assets and properties irreplaceable to the production of the Group Companies, the value of which exceeds RMB 1 million, beyond the daily operation of the Group Companies, or create any pledge, charge or security over such assets or properties, or provide any guarantee for any third party;

 

8.3.18              Except as disclosed, make any capital expenditure or commitment in an amount of more than RMB 1 million other than in the nature of normal business operation, including purchase of fixed assets or investment, entry into any contract of the nature other than normal production and operation;

 

8.3.19              Modify the remuneration policy of senior management of the Group Companies;

 

8.3.20              File or settle any litigation, arbitration or other dispute or legal procedure in which any single claim is in an amount of more than RMB 1 million or a series of claims in respect of the same issue in an aggregate amount of more than RMB 1 million in Transitional Period;

 

8.3.21              Carry out any activity other than daily operation activities that may have an effect of reduction of net assets of the Group Companies for more than RMB 1 million in the Transitional Period, except for those caused by force majeure event;

 

8.3.22              Agree, resolve or undertake to do any of the above matters.

 

8.4                   Right of Information

 

From the Execution Date of this Agreement through the Closing Date (inclusive of the Closing Date), during the normal working hours, the Target Company and the Transferor shall:

 

8.4.1                     Provide the Transferee and its representative with relevant documents regarding the Group Companies reasonably requested by the Transferee, including but not limited to all the accounts, records, contracts, technical documents, personnel information, management information and other documents required for full due diligence conducted by the attorneys, accountants and other representatives appointed by the Transferee.

 

8.4.2                     Support and assist the Transferee to carry out review with prudence on the financial, asset and operation conditions of the Group Companies at any time prior to the Closing (upon the Transferee’s reasonably prior notice).

 

8.4.3                     Whether the Transferee attend as an observer or a participant at any board meetings and other important meetings of the Target Company, the

 

 

Target Company and the Transferor shall, or shall procure the Group Companies to, send the effective resolution and records of such meetings by email or by other means in writing to the Transferee within 48 hours after conclusion of relevant meetings.

 

8.4.4                     During the Transitional Period, if there is any unusual circumstance in respect of the financial, asset and operation conditions of the Group Companies, the Target Company and the Transferor shall actively provide the Transferee with relevant documents.

 

Article 9 Liabilities for Breach of Agreement

 

9.1       If either Party fails to perform any obligations hereunder or violates any representation, statement, warranty or undertaking, such failure or violation, when occurred, will constitute breach of this Agreement (“Breach”). Upon the occurrence of any breach of this Agreement, if the non-breaching Party agrees to grant a Grace Period (defined as below) to the breaching Party to correct such breach, and the breaching Party so does by the expiration of the Grace Period, such breach of this Agreement will not be deemed to be a Breach.

 

9.2       Except as otherwise provided for in this Agreement, the breaching Party shall compensate the non-breaching Party for all the actual direct and indirect losses incurred by the non-breaching Party for such Breach (including but not limited to the interest paid or loss of interest suffered and legal fees arising due to such Breach). Payment of damages will not affect the right of the non-breaching Party to demand the breaching Party to continue performance of this Agreement or to terminate this Agreement.

 

9.3       Except as otherwise provided for in this Agreement, if either Party breaches, it shall remedy such breach within 30 days upon the other Party’s written notice demonstrating such breach (“Grace Period”). If the breaching Party fails to remedy within the period specified above, the non-breaching Party is entitled to compensation for all losses relating to or arising from such Breach.

 

9.4       If the Group Companies suffer any penalty by the governmental authorities due to any breach or violation of laws and regulations (including but not limited to violation of laws and regulations relating to labor, license and environment) prior to the Closing Date, the Target Company agrees to indemnify the Transferee for all the costs relating to assumption or elimination of the above penalty. The Transferor agrees to assume 33% of the legal and economic liability relating to the above penalty prior to the Closing Date, and the Transferee is entitled to deduct such amount from the outstanding Equity Transfer Price.

 

9.5       If the Group Companies (1) suffer any penalty imposed by the taxation 

 

 

authority, (2) is required to pay any additional tax, (3) is required to pay any late fee, or (4) has any tax liability not recorded in the financial statements due to irregularity in respect of taxation prior to the Closing Date, the Target Company agrees to indemnify the Transferee for all the costs relating to assumption or elimination of the above penalty. The Transferor agrees to assume 33% of the legal and economic liability relating to the above penalty prior to the Closing Date, and the Transferee is entitled to deduct such amount from the outstanding Equity Transfer Price.

 

9.6       However, no Party’s compensation shall exceed the transaction amount of this Agreement.

 

Article 10 Applicable Law and Dispute Resolution

 

10.1            The execution, validity, interpretation and performance of this Agreement, as well as the resolution of dispute hereunder shall be governed by the laws of the PRC.

 

10.2            All the disputes arising from or relating to the performance of this Agreement shall be resolved through friendly negotiation. If negotiation fails to resolve the dispute, either Party may submit the disputes to the people’s court at the place of the Target Company for judicial decision.

 

Article 11 Miscellaneous

 

11.1            The Parties will be responsible for their respective taxes and expenses relating to the Equity Transfer. Qian Hui agrees that the Transferee will withhold the individual income tax for this transaction, and the Transferee is entitled to deduct from the Equity Transfer Price the individual income tax to be withheld. The Transferee agrees to deliver the original receipt of tax payment to Qian Hui, and is entitled to retain the copies of such receipt.

 

11.2            The invalidity or unenforceability of any provision hereof will not affect the validity and enforceability of other provisions hereof.

 

11.3            This Agreement is signed in Chinese, and made in four (4) counterparts. Each Party will hold one (1) counterpart, and the Target Company will keep two (2) counterparts for relevant procedures. Each counterpart has the same legal force.

 

11.4            This Agreement will become effective and binding on the Parties upon the Parties’ execution.

 

(The signature page follows.)

 

 

(Signature page of the Equity Transfer Agreement)

 

 

	
Qian   Hui
    	
 
    	
Shanghai   iKang Guobin Holding Co., Ltd. 
    
	
 
    	
 
    	
(Company   Seal) 
    
	
/s/   Qian Hui
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Shanghai   Huajian Clinic Ltd.(Company Seal) 
    	
 
    	
 
    

 

 

Exhibit I Disclosure Schedule

 

1. In January, 2013, Shanghai Huajian Clinic, Ltd was fined RMB 2000 for publishing medical advertisement in Money Weekly containing the names, telephone numbers and treatment content of relevant clients.

 

2. Other particulars disclosed in the Letter of Intent regarding Share Transfer signed previously by the Transferor and the Transferee.

 

 

Exhibit II Representations and Warranties of the Transferor and the Target Company

 

Article 1 Right and Qualification

 

1.1 the Transferor and the Target Company have sufficient legal rights and necessary power and authority and have taken all necessary actions to sign and deliver this Agreement, perform its obligations under Transaction Documents, and complete the transaction under the Transaction Documents.

 

1.2 This Agreement and other Transaction Documents related to the Equity Transfer will constitute legal, valid and binding obligations of the Transferor and the Target Company in accordance with their respective terms upon the execution by the Parties and effectiveness of this Agreement.

 

1.3 Signing and delivery of this Agreement by the Transferor and the Target Company and their performance of their obligations under this Agreement will:

 

1.3.1 Not lead to violation of any of the provisions of the memorandum of association and articles of association, and have obtained necessary and sufficient internal authorization and approval;

 

1.3.2 Not lead to violation of any legal documents binding on them or constitution of failure to perform the obligations under such legal documents;

 

1.3.3 Not lead to violation of any order, judgment or decree made by any court or administrative agency that is binding on them.

 

Article 2 Data Accuracy and Adequacy

 

2.1 All data provided by the Target Company and the Transferor to the Transferee is true and accurate. Moreover, there is no false or misleading information due to intentional omission, material negligence or misrepresentation;

 

2.2 The Target Company and the Transferor have provided the Transferee with all such important information within the control of Group Companies as the Transferee may reasonably request for the Transferee to decide whether to conduct the Equity Transfer. There is no misrepresentation, omission or materially misleading facts in any written materials and public documents related to the Equity Transfer that are provided by the Target Company and the Transferor to the Transferee.

 

 

Article 3 Establishment and Existence

 

3.1 All Group Companies are limited liability companies duly incorporated and validly existing in accordance with the laws of the PRC. They have the independent capacity for civil rights and civil conduct. There are no circumstances of termination as required by the laws, regulations and regulatory documents or articles of association;

 

3.2 Except for the written disclosure that has been made to the Transferee, Group Companies have obtained all necessary approvals, consent, authorization and licenses required for their establishment and the business set forth in the business license; Except for the written disclosure that has been made to the Transferee, the foregoing approvals, consent, authorization and licenses are all effective currently, without change, withdrawal or failure of renewal;

 

3.3 Group Companies have participated in and passed the annual check of industrial and commercial administration regularly in accordance with relevant legal requirements; all Group Companies have completed valid tax registration. In addition, there are no obstacles or constraints related to the above aspects that may affect the normal operation of related companies;

 

3.4 All shareholders of the Group Companies have paid up the registered capital payable in accordance with the law, without outstanding additional or supplementary payment; all shareholders of the Group Companies have fully paid the subscribed registered capital in accordance with the provisions of laws and related articles of association:

 

3.5 Foreign investment information of the Group Companies is true and complete. Group Companies do not own any capital interest such as equity, shares, stocks and convertible bonds in any company, enterprise or other entities;

 

3.6 Except for the written disclosure that has been made to the Transferee, all the equity changes occurred in the duration of existence of the Transferor and Group Companies are voluntary, true and valid. The Transferor and Group Companies have paid necessary consideration and completed necessary formalities for approval, registration and change in accordance with the law. No illegal circumstances exist such as false transfer and concealing of illegal objectives in legal forms; the statements with respect to equity changes since the establishment of the Transferor and Group Companies are true and complete, without concealments and material omissions. The Transferor and Group Companies are not in violation of any law or regulation or any judgment, decree, rules or regulations made by any court or arbitration institution or governmental or supervisory department.

 

 

Article 4 Target Equity

 

4.1 The Transferor is entitled to full and complete rights and interests in the Target Equity. No pledge, attachment or other encumbrances or defects of any nature have been imposed on such rights and interests.

 

4.2 Neither pledge or other encumbrances nor any arrangement or obligation of creating encumbrances or any judicial preservation measures have been imposed on the Target Equity; there are no existing or potential legal disputes or controversies in connection with the Target Equity.

 

Article 5 Accounts and Records

 

5.1 Financial statements of 2011, 2012 and by November 30th of 2013 (“Accounting Reference Date”) of Group Companies truly, fairly and accurately reflect the assets, liabilities, financial situation and related matters of Group Companies as of relevant balance sheet date and profits and losses of Group Companies for the reporting period. In addition, they fully reflect the true financial position of the Group Companies as of such dates and to the extent prescribed by the laws of China. The income recorded in all financial reports and records of the Group Companies covers all the income of the Group Companies. All financial statements of the Group Companies are made in accordance with PRC GAAP and on consistent basis for the period covered by relevant statements.

 

5.2 The Group Companies have no liabilities that are not recorded in the financial statements. Except those recorded in the financial statements, the Group Companies have not provided any guarantee or security to others, nor created any mortgage, pledge, lien or any other third-party rights over their properties.

 

5.3 Except for the changes to the accounting rules applicable to the statutory account books, accounts or other accounting records of any sort of the Group Companies as a result of complying with PRC accounting standards or any requirement of government agencies, no change has been made to the accounting rules applicable to the statutory account books, accounts or other accounting records of any sort of the Group Companies since the previous balance sheet date. All financial statements, reports, documents and statements required by applicable laws to submit or issue to any government agency have been properly and accurately submitted or issued.

 

5.4 The accounts receivable reflected in the financial statements of the Group Companies are true, accurate, and generated from normal business activities of the Group Companies, and valid and receivable. All receivables generated by the Group Companies have been reflected in the financial statements of the Group Companies in accordance with the requirements of PRC GAAP.

 

 

5.5 Except for those recorded in the financial statements or disclosed to the Transferee in writing, the Group Companies have no foreign loans, foreign guaranty or potential liabilities and burden.

 

Article 6 Events after the Accounting Reference Date

 

From the Accounting Reference Date to the date of this Agreement:

 

6.1 There are no material adverse changes to the financial position and profitability of the Group Companies. Also, there are no such facts or events as will cause or may cause such changes;

 

6.2 Except for the written disclosure that has been made to the Transferee, the business of the Group Companies is in the normal operating status. There is no material disruption or material change to its business nature, scope and operating mode etc.;

 

6.3 No transactions, commitments, liabilities (including any contingent liabilities that should have been recorded but have not been recorded in the financial statements) or amounts that are not recorded in the financial statements have been conducted, made, incurred or paid;

 

6.4 No abnormally high or low profit is recorded due to the transactions that are not based on arms-length commercial activities such as changes of accounting treatment or nonrecurring items of income or expense.

 

Article 7 Connected Transactions

 

7.1 Except for the written disclosure that has been made to the Transferee, there is no connected transaction between the Group Companies and the Affiliates that has not been disclosed to the Transferee, from January 1, 2011 to the date of this Agreement.

 

7.2 All connected transactions between the Group Companies and the Affiliates are performed on arms-length commercial terms and in the principle of fairness, justice and reasonableness.

 

Article 8 Major Assets

 

8.1 Except those recorded in the financial statements or disclosed to the Transferee in writing, the Group Companies are not interested in or in possession of/using any land or properties;

 

 

8.2 Major assets required for daily operation of the Group Companies have been included in the accounts of the Group Companies, including but not limited to the right to use the land, housing ownership, fixed assets and Intellectual Property Rights etc;

 

8.3 Except for the written disclosure that has been made to the Transferee, the forgoing major assets are legally owned, controlled, used, managed and operated by relevant Group Companies, with clear ownership and free of any third-party claim or any other property dispute or potential property dispute;

 

8.4 Except for the written disclosure that has been made to the Transferee, there is no security including any mortgage, pledge and lien and other restriction on exercise of rights in the forgoing major assets, nor any litigation or arbitration in respect of the forgoing major assets; the approvals, registrations and other procedures required for the forgoing major assets have been obtained or completed and remain valid;

 

8.5 Except for the written disclosure that has been made to the Transferee, Group Companies’ leasing of relevant land and housing are carried out based on valid lease contracts or agreements. Such land and housing are in normal use; the lessor legally owns corresponding rights and interests in the forgoing land and housing and has the right to rent out the forgoing land and housing; the Group Companies have timely paid relevant fee as agreed. The Group Companies have no pending or potential disputes with the lessor;

 

8.6 Office equipment and vehicles used by the Group Companies and related to their business are under normal repair and maintenance and can be used for the business of the Group Companies.

 

8.7 The Group Companies do not share any facilities, places or assets with or provide any facilities, places or assets for any company or individual other than the Group Companies and the Transferor.

 

Article 9 Intellectual Property Rights

 

All Intellectual Property Rights (whether already registered and applied for registration) that have been used in business operation of the Group Companies:

 

9.1 Are legally owned by the Group Companies or lawfully used by the Group Companies with the authorization/licensing of the owners;

 

9.2 Have clear ownership without property disputes or potential disputes;

 

9.3 Are valid and enforceable, and have no charge or any other restriction/encumbrance on it;

 

 

9.4 With respect to the Intellectual Property Rights that have been registered or are in the process of application for registration, Group Companies have paid all due registration update fees and have taken corresponding measures to sustain and protect the forgoing Intellectual Property Rights;

 

9.5 All business-related Intellectual Property Rights (including application for Intellectual Property Rights) have been disclosed to the Transferee completely.

 

The Group Companies have not received any notice, right infringement claims or right conflict related to any Intellectual Property Rights in the course of business activities. Group Companies are not in breach of any patent rights, copyrights, proprietary rights, and Intellectual Property Rights in connection with trademark, service mark, commodity name, domain name or other Intellectual Property Rights registered by any third party in the PRC, the USA or other jurisdiction.

 

Article 10 Material Contracts

 

10.1 Except for the written disclosure that has been made to the Transferee, the Group Companies are not involved in or bound by any of the following agreements or arrangements:

 

101.1 Agreements or arrangements entered into other than in the ordinary course of business;

 

101.2 Agreements or arrangements entered into other than on arms-length basis;

 

101.3 Agreements or arrangements restricting Group Companies’ free operation of business;

 

101.4 Agreements or arrangements affecting normal operation of the Group Companies or having a Material Adverse Effect on profits of the Group Companies;

 

10.2 The agreements or arrangements with a payable but outstanding amount of more than RMB 1 million in regular business or with a payable but outstanding amount of more than RMB 0.5 million in extraordinary business are involved;

 

10.3 Except for the written disclosure that has been made to the Transferee, the Group Companies’  loan or security contracts etc. have been in the process of normal performance, in lawful and valid  content and form. There are no substantial obstacles in continued performance of such contracts;

 

10.4 Except for the written disclosure that has been made to the Transferee, the Group Companies have not provided any security or guarantee to any legal persons or individuals related to them;

 

10.5 Group Companies are not held liable for breach of the terms or obligations under

 

 

contracts, agreements, rules or other documents binding on them.

 

Article 11 Authorization

 

Except for the authorizations granted to employees of the Group Companies to enter into conventional business transaction contracts and/or carry out daily operation and management activities of the Group Companies in performing their duties, nobody is authorized by Group Companies to enter into any agreement/contract on behalf of the Group Companies, or to provide other basis of power similar to an authorization.

 

Article 12 Employees

 

12.1 Except for the disclosure that has been made to the Transferee, the Group Companies have signed labor contracts with all employees;

 

12.2 The Group Companies have not made any material change to remuneration or other employment clauses for any senior management since the Accounting Reference Date;

 

12.3 The Group Companies have no payable or outstanding economic or similar indemnity, compensation or costs in connection with termination of employment;

 

12.4 The Group Companies do not have unfair employment, collective labor disputes, or other labor disputes that may affect the normal business activities of the Group Companies;

 

12.5 Except for the written disclosure that has been made to the Transferee, the Group Companies do not have any equity incentive plan for any of their employees, former employees or any of the employees of their Affiliates or that may affect such employees;

 

12.6 Except for the disclosure that has been made to the Transferee, The Group Companies have paid social insurance and provident fund for employees according to the requirements of relevant law and are not subject to any administrative punishment as a result of the failure of payment in full of such social insurance and provident fund.

 

Article 13 Taxes

 

Except for the written disclosure that has been made to the Transferee,

 

13.1 The Group Companies have no tax liability or outstanding taxable matter that has not been reflected in the financial statements. The Group Companies have timely declared and paid payable taxes in full in accordance with the PRC law and requirements of relevant tax authorities. There is no dispute between Group Companies and tax authorities that may result in tax liability upon the Group Companies (including fines levied by tax authorities);

 

 

13.2 Where any tax liability or outstanding taxable matter of the Group Companies is not reflected in the financial statements or any administrative punishment is imposed therefor, the Transferor shall assume 33% of the liability arising therefrom and indemnify the Group Companies from 33% of their losses incurred thereby.

 

Article 14 Environment

 

Except for the written disclosure that has been made to the Transferee, the Group Companies have complied with relevant laws and regulations on environmental protection, safety, quality and other material aspects, and no accidents have occurred to the Group Companies with respect to environmental protection, safety, quality and other material aspects. No administrative punishment has been imposed by related government departments and no material expenditure has been incurred due to their breach of relevant laws.

 

Article 15 Penalties, Litigation and Claims

 

15.1 Except for the written disclosure that has been made to the Transferee, Group Companies have not been subject to any punishment since 2013 (including but not limited to administrative punishment with respect to tax, environmental protection, safety, labor and other aspects);

 

15.2 Except for the written disclosure that has been made to the Transferee, the Group Companies (including taking their assets as the object matter) have not been subject to or involved in any ongoing or threatened punishment (including but not limited to administrative punishment with respect to tax, environmental protection, safety, labor and other aspects), litigation, arbitration, dispute or claim;

 

15.3 The Group Companies will not become subject to any punishment, recourse, claim or loss after the Closing of the equity investment hereunder due to any action, status or circumstance occurring or existing prior to the Closing of the equity investment hereunder. Otherwise, the Transferor shall fully compensate the Group Companies in cash or otherwise consented by the Transferor in writing, within the time span required by the Transferor.

 

Article 16 Product and Service

 

The products sold or services provided by the Group Companies fully comply with and conform to all applicable laws and the representations and warranties set out in the product labels or service descriptions. All products and services have no design flaws. All products and services are supplied with adequate warning labels. All the warning labels fully note all the prudent and customary matters required to request consumers to pay attention to for the purpose of the business and industry of the 

 

 

Group Companies and in accordance with applicable laws.

 

Article 17 No Illegal Payment

 

The Transferor or the Group Companies, or any of their directors, senior management, agents, employees, Affiliates (see 2012 UK Bribery Act for the definition) or any person acting on behalf of the Transferor or the Group Companies have not conduct any of the following:

 

17.1 Use any corporate fund for the purpose of any illegal contributions, gifts, entertainment or other illegal expenditures related to political activities;

 

17.2 Make use of corporate funds to make illegal payment directly or indirectly to any government officials or employees or any “foreign officials” (see revised USA 1977 Foreign Corrupt Practices Act and its rules and regulations for the definition of such terms) (hereinafter referred to as the “FCPA”);

 

17.3 Have violated or are in violation of FCPA, the 2012 UK Bribery Act or any similar law and regulation applicable to the Transferor or the Group Companies; or

 

17.4 Make payment of any bribes, kickbacks, yield and influence payment, commission or other illicit payments; and the Transferor and the Group Companies have complied with applicable anti-corruption laws in the course of business, and maintained their policies and procedures, in order to promote and achieve compliance with these laws and the representation and warranties set forth in this Agreement.

 

Article 18 Anti Money Laundering Law

 

The Transferor and the Group Companies, during their operation of business, have been complying with the applicable requirements of financial record keeping and reporting set forth in the Currency and Foreign Transactions Reporting Act of 1970 (as amended) and the Bank Secrecy Act of 1970 as amended by the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 “, and applicable anti money laundering laws and regulations and their rules and regulations of the jurisdiction where the Transferor and the Group Companies conduct business, as well as any related or similar rules, regulations or guidelines issued and implemented by any governmental or regulatory agencies (collectively referred to as the “AML”); there is no pending or threatened action, lawsuit or legal procedure filed to or by any court or government or regulatory body or any arbitration institution with respect to relevant AMLs.

 

 

Article 19 Compliance with Sanctions

 

The Transferor or the Group Companies, or any of their directors, senior management, agents, employees or associate companies as a person or entity (hereinafter referred to as the “Person”) do not experience the following circumstances: such individual or entity, before the date of signing this Agreement, is the target of any sanctions or trade embargo implemented or compulsorily executed by the Office of Foreign Assets Control of USA Treasury (hereinafter referred to as the “OFAC”), the State Council or the Ministry of Commerce of USA, the Ministry of Finance of UK, EU Council or Committee, and the Security Council of the United Nations (hereinafter referred to as “UNSC”) or the Sanctions Committee acting on behalf of UNSC (including but not limited to the sanctions implemented by all revised Trading with the Enemy Act, International Emergency Economic Power Act, “ United Nations Participation Act, Iran and Libya Sanctions Act of 1996, Burmese Freedom and  Democracy Act of 2003, Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 or National Defense Authorization Act and all regulations promulgated by the OFAC, together with any executive orders, regulations or license of promulgated by the authorities of any of the forgoing parts) (collectively referred to as “Sanctions”), or are owned or controlled by the target, or are located or organized in or reside in any country or region which is currently the target of Sanctions (including but not limited to Burma, Cuba, Iran, Libya, North Korea, Sultan and Syria), or has ever participated in or is involved in or will be involved in any activities of countries as the targets of Sanctions which may lead to violation of the requirement of any Sanction.

 

Article 20 Accounting Control

 

The Group Companies have maintained internal accounting control, which can provide sufficient assurance of the following matters:

 

20.1 Conduct of transactions according to general or specific authorization of management authority;

 

20.2 Permission to the use of properties only according to general or specific authorization of management authority;

 

20.3 Responsible for reasonable and regular check of assets of book and actual assets and taking reasonable measures for the discrepancy, if any;

 

20.4 Appropriate separation of auditing and accounting positions; and

 

20.5 The Group Companies do not share any assets or bank account with any director, officer or employee or use any personal assets or bank account of any director, officer or employee. The existing management information and accounting control system of the Transferor and the Group Companies has been adopted for at least six months, during which the Group Companies have not encountered any difficulties in assuring the above matters. The Transferor and the Group Companies are not aware of (x) any substantive shortcomings of the internal accounting control system or (y) any Material Adverse Effect or potential Material Adverse Effect on the internal financial control system of the Group Companies.

 

 

Exhibit III Articles of Association

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