Document:

Exhibit 10.1

 

Walnut Street Group Holding Limited 

2015 GLOBAL SHARE PLAN

 

(adopted by the Company’s Board of Directors on September 1, 2015; 
 approved by the Company’s shareholders on September 1, 2015)

 

1.                                 Purposes of the Plan. The purposes of this Plan are to perfect the corporate governance structure and establish a mechanism to share both interest and risk among its shareholders, key employees and/or consultants; establish a long-term incentive and restraint mechanism to perfect the remuneration system of the company; attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentives to selected Employees, Directors, and Consultants and to promote the success of the Company’s business by offering these individuals an opportunity to acquire a proprietary interest in the success of the Company or to increase this interest, by permitting them to purchase Shares of the Company; adapt to the needs of the strategic development of the company and enhance its competitive strength to promote sustainable development. The Plan provides both for the direct award or sale of Shares and for the grant of Options to purchase Shares, as determined by the Administrator at the time of grant.

 

2.                                 Definitions. For the purposes of this Plan, the following terms shall have the following meanings:

 

(a)                            “Acquisition Date” means, with respect to Shares, the respective dates on which the Shares are sold under the Plan or the Shares are issued upon exercise of an Option.

 

(b)                            “Administrator” means the Board or any of its Committees as shall be administering the Plan in accordance with Section 4 hereof.

 

(c)                             “Applicable Law” means any applicable legal requirements relating to the administration of and the issuance of securities under equity securities-based compensation plans, including, without limitation, the requirements of U.S. state corporate laws, U.S. federal and state securities laws, U.S. federal law, U.S. Internal Revenue Code of 1986, the laws of the Cayman Islands, and the requirements of any stock exchange or quotation system upon which the Shares may then be listed or quoted and the applicable laws of any other country or jurisdiction where Awards are granted under the Plan. For all purposes of this Plan, references to statutes and regulations shall be deemed to include any successor statutes or regulations, to the extent reasonably appropriate as determined by the Administrator.

 

(d)                            “Award” means an Option or a Share Purchase Right.

 

(e)                             “Board” means the Board of Directors of the Company.

 

(f)                              “Change in Control” means the occurrence of any of the following events:

 

(i)                                     any person becomes the beneficial owner, directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or

 

 

(ii)                                  the consummation of the sale, lease, or disposition by the Company of all or substantially all of the Company’s assets; or

 

(iii)                               the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

 

Anything in the foregoing to the contrary notwithstanding, a transaction shall not constitute a Change in Control if its sole purpose is to change the legal jurisdiction of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. In addition, a sale by the Company of its securities in a transaction, the primary purpose of which is to raise capital for the Company’s operations and business activities including, without limitation, an initial public offering of Shares under Applicable Law, shall not constitute a Change in Control.

 

(g)                                  “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 hereof.

 

(h)                                 “Company” means Walnut Street Group Holding Limited, a company organized under the laws of the Cayman Islands, or any successor corporation thereto.

 

(i)                                     “Consultant” means, any person who is engaged by the Company or any Parent or Subsidiary to render consulting or advisory services to such entity, and, any natural person, including an advisor, who is engaged by the Company, or any Parent or Subsidiary to render bona fide consulting or advisory services to such entity and who is compensated for the services; provided that the term “Consultant”, does not include (i) Employees, (ii) Directors who are paid only a director’s fee by the Company or who are not compensated by the Company for their services as Directors, (iii) securities promoters, (iv) independent agents, franchisees and salespersons who do not have employment relationships with the Company from which they derive at least fifty percent of their annual income, or (v) any other person who would not be “consultants” or “advisors” as defined pursuant to Applicable Laws.

 

(j)                                    “Date of Grant” means the date an Award is granted to a Participant in accordance with Section 13 hereof.

 

(k)                                 “Director” means a member of the Board.

 

(l)                                     “Disability” means total and permanent physical disability.

 

 

(m)                             “Employee” means any person, including officers and Directors, employed by the Company or any Parent or Subsidiary. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or any Parent or Subsidiary, including sick leave, military leave, or any other personal leave, or (ii) transfers between locations of the Company or between the Company or any Parent or Subsidiary, or any successor, provided that no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then three (3) months following the 91st day of such leave, any Option held by the Optionee shall then cease to be an Option. Neither service as a Director nor payment of a director’s fee by the Company or any Parent or Subsidiary shall be sufficient to constitute “employment” by the Company or any Parent or Subsidiary.

 

(n)                                 “Exercise Price” means the amount for which one Share may be purchased upon exercise of an Option, as specified by the Administrator in the applicable Option Agreement in accordance with Section 6(c) hereof.

 

(o)                                 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

(p)                                 “Fair Market Value” means, as of any date, the value of the Shares determined by the Administrator in good faith and with reference to the market value of such Shares in accordance with Applicable Law.

 

(q)                                 “Option” means an option to purchase Shares that is granted pursuant to the Plan in accordance with Section 6 hereof.

 

(r)                                    “Option Agreement” means a written or electronic agreement between the Company and an Optionee, the form(s) of which shall be approved from time to time by the Administrator, evidencing the terms and conditions of an individual Option granted under the Plan, and includes any documents attached to or incorporated into the Option Agreement, including, but not limited to, a notice of option grant and a form of exercise notice. The Option Agreement shall be subject to the terms and conditions of the Plan.

 

(s)                                   “Optioned Shares” means the Shares subject to an Option.

 

(t)                                    “Optionee” means the holder of an outstanding Option granted under the Plan.

 

(u)                                 “Parent” means a “parent corporation” with respect to the Company, whether now or hereafter existing.

 

(v)                                 “Participant” means an Optionee or Purchaser, as applicable given the context, or the holder of Shares issuable or issued pursuant to the exercise of an Option or Share Purchase Right.

 

(x)                                 “Plan” means this 2015 Global Share Plan, as amended from time to time.

 

(y)                                 “Purchase Price” means the amount of consideration for which one Share may be acquired pursuant to a Share Purchase Right, as specified by the Administrator in the applicable Restricted Share Purchase Agreement in accordance with Section 7(b) hereof.

 

 

(z)                                  “Purchaser” means the holder of Shares purchased pursuant to the exercise of a Share Purchase Right.

 

(aa)                          “Restricted Share Purchase Agreement” means a written or electronic agreement between the Company and a Purchaser, the form(s) of which shall be approved from time to time by the Administrator, evidencing the terms and conditions of an individual Share Purchase Right, and includes any documents attached to or incorporated into the Restricted Share Purchase Agreement. The Restricted Share Purchase Agreement shall be subject to the terms and conditions of the Plan.

 

(bb)                          “Restricted Shares” means Shares acquired pursuant to a Share Purchase Right.

 

(cc)                            “Securities Act” means the U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

(dd)                          “Service Provider” means an Employee, Director, or Consultant.

 

(ee)                            “Share” means an ordinary share of the Company, as adjusted in accordance with Section 12 hereof.

 

(ff)                              “Shareholders Agreement” means any agreement between a Participant and the Company or members of the Company or both.

 

(gg)                            “Share Purchase Right” means a right to purchase Restricted Shares pursuant to Section 7 hereof.

 

(hh)                          “Subsidiary” means a “subsidiary corporation” with respect to the Company, whether now or hereafter existing.

 

(ii)                                  “United States” means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia.

 

(jj)                                “U.S. Person” has the meaning accorded to it in Rule 902(k) of the Securities Act, and currently includes:

 

(i)                                     any natural person resident in the United States;

 

(ii)                                  any partnership or corporation organized or incorporated under the laws of the United States;

 

(iii)                               any estate of which any executor or administrator is a U.S. Person;

 

(iv)                              any trust of which any trustee is a U.S. Person;

 

(v)                                 any agency or branch of a foreign entity located in the United States;

 

(vi)                              any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. Person;

 

 

(vii)                           any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and

 

(viii)                        any partnership or corporation if:

 

(A)                               organized or incorporated under the laws of any foreign jurisdiction; and

 

(B)                               formed by a U.S. Person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) promulgated under the Securities Act) who are not natural persons, estates or trusts.

 

3.                                      Shares Subject to the Plan.

 

(a)                                 Basic Limitation. Subject to the provisions of Section 12 hereof, the maximum aggregate number of Shares that may be issued under the Plan shall not exceed 945,103,260 Shares; provided, however, that, at no time while the Shares are not registered pursuant to the Securities Act or the Company is not otherwise subject to the public reporting requirements of the Exchange Act, shall the maximum aggregate number of Shares that may be issued upon the exercise of all outstanding Awards and the aggregate number of Shares provided for under any other share bonus or similar plan of the Company exceed the number of Shares that the Company is permitted to issue pursuant to the exemption from registration under the Securities Act provided by Rule 701 of the Securities Act plus the aggregate number of Shares issued pursuant to Regulation S of the Securities Act or other exemption available under the Securities Act. The Shares may be authorized but unissued Shares. The number of Shares that are subject to Awards outstanding under the Plan at any time shall not exceed the aggregate number of Shares that then remain available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of outstanding Awards granted under the Plan.

 

(b)                                 Additional Shares. If an Award expires, becomes unexercisable, or is cancelled, forfeited, or otherwise terminated without having been exercised or settled in full, as the case may be, the Shares allocable to the unexercised portion of the Award shall again become available for future grant or sale under the Plan (unless the Plan has terminated). Shares that actually have been issued under the Plan, upon exercise of an Option or delivery under a Share Purchase Right, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that in the event that Shares issued under the Plan are reacquired by the Company pursuant to any forfeiture provision, right of repurchase or redemption, or are retained by the Company upon the exercise of or purchase of Shares under an Award in order to satisfy the Exercise Price or Purchase Price for the Award or any withholding taxes due with respect to the exercise or purchase, such Shares shall again become available for future grant under the Plan.

 

 

4.                                      Administration of the Plan.

 

(a)                                 Administrator. The Plan shall be administered by the Board or a Committee appointed by the Board, which Committee shall be constituted to comply with Applicable Law.

 

(b)                                 Powers of the Administrator. Subject to the provisions of the Plan and, in the case of a Committee, the specific duties delegated by the Board to such Committee, and subject to the approval of any relevant authorities, the Administrator shall have the authority in its discretion:

 

(i)                                     to determine the Fair Market Value, in accordance with Section 2(o) hereof;

 

(ii)                                  to select the Service Providers to whom Awards may from time to time be granted hereunder;

 

(iii)                               to determine the number of Shares to be covered by each Award granted hereunder;

 

(iv)                              to approve the form(s) of agreement for use under the Plan;

 

(v)                                 to determine the terms and conditions of any Award granted hereunder including, but not limited to, the Exercise Price, the Purchase Price, the time or times when Options may be exercised (which may be based on performance criteria), the time or times when repurchase or redemption rights shall lapse, any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine;

 

(vi)                              to implement a program where (A) outstanding Awards are surrendered or cancelled in exchange for Awards of the same type (which may have lower Exercise/Purchase Prices and different terms), Awards of a different type, or cash, or (B) the Exercise/Purchase Price of an outstanding Award is reduced, based in each case on terms and conditions determined by the Administrator in its sole discretion;

 

(vii)                           to prescribe, amend, and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying Applicable Laws;

 

 

(viii)                        to allow Optionees to satisfy withholding tax obligations by electing to have the Company withhold from the Optioned Shares to be issued under an Option that number of Shares having a Fair Market Value equal to the minimum amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by Optionees to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable;

 

(ix)                              to modify or amend each Award (subject to Section 17 hereof and Participant consent if the modification or amendment is to the Participant’s detriment), including, without limitation, the discretionary authority to extend the post-termination exercisability of an Option longer than is otherwise provided for in an Option Agreement or accelerate the vesting or exercisability of an Option or lapsing of a repurchase or redemption right to which Restricted Shares may be subject;

 

(x)                                 to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; and

 

(xi)                              to make any other determination and take any other action that the Administrator deems necessary or desirable for the administration of the Plan.

 

(c)                                  Delegation of Authority to Officers. Subject to Applicable Law, the Administrator may delegate limited authority to specified officers of the Company to execute on behalf of the Company any instrument required to effect an Award previously granted by the Administrator.

 

(d)                                 Effect of Administrator’s Decision. All decisions, determinations, and interpretations of the Administrator shall be final and binding on all Participants.

 

(e)                                  Term of the Plan. The Plan shall be valid for 10 years after it enters into force. In event of Liquidation or events that have material impact on the Plan, the Board may resolve to terminate the Plan before it expires. If the Plan is terminated before expiry, the Company shall no longer award Options to Service Providers pursuant hereto.

 

5.                                      Eligibility.

 

Only Service Providers shall be eligible for the grant of Options and Share Purchase Rights.

 

6.                                      Terms and Conditions of Options.

 

(a)                                 Option Agreement. Each grant of an Option under the Plan shall be evidenced by an Option Agreement between the Optionee and the Company. Each Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and that the Administrator deems appropriate for inclusion in an Option Agreement. The provisions of the various Option Agreements entered into under the Plan need not be identical.

 

 

(b)                                 Number of Shares. Each Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 12 hereof.

 

(c)                                  Exercise Price. Each Option Agreement shall specify the Exercise Price, which shall be determined by the Administrator in its sole discretion. The Exercise Price shall be payable in accordance with Section 9 hereof and the applicable Option Agreement. The exercise price per Share subject to an Option may be amended or adjusted in the absolute discretion of the Administrator, the determination of which shall be final, binding and conclusive.  For the avoidance of doubt, to the extent not prohibited by Applicable Laws or any exchange rule, a downward adjustment of the exercise prices of Options mentioned in the preceding sentence shall be effective without the approval of the Company’s shareholders or the approval of the affected Optionees.

 

(d)                                 Term of Option. The Option Agreement shall specify the term of the Option; provided, however, that the term shall not exceed ten (10) years from the Date of Grant. Subject to the preceding sentence, the Administrator in its sole discretion shall determine when an Option is to expire.

 

(e)                                  Exercisability. Each Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. The exercisability provisions of any Option Agreement shall be determined by the Administrator in its sole discretion.

 

(f)                                   Fast-track Exercisability. Under normal circumstances, Options awarded pursuant to the Plan shall not be exercised prior to its maturity, except for circumstances otherwise determined by the Administrator, including but not limited to event of Liquidation or events where the Optionee is deemed to have made extraordinary contribution to the Company in the unanimous opinion of the Board.

 

(g)                                  Exercise Procedure. Any Option granted hereunder shall be exercisable according to the terms hereof at such times and under such conditions as may be determined by the Administrator and as set forth in the Option Agreement; provided, however, that an Option shall not be exercised for a fraction of a Share.

 

(i)                                     An Option shall be deemed exercised when the Company receives (A) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, (B) full payment for the Shares with respect to which the Option is exercised, and (C) all representations, indemnifications, and documents reasonably requested by the Administrator including, without limitation, any Shareholders Agreement. Full payment may consist of any consideration and method of payment authorized by the Administrator in accordance with Section 9 hereof and permitted by the Option Agreement.

 

(ii)                                  Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Subject to the provisions of Sections 8, 9, 14, and 15, the Company shall issue (or cause to be issued) certificates evidencing the issued Shares promptly after the Option is exercised. Notwithstanding the foregoing, the Administrator in its discretion may require the Company to retain possession of any certificate evidencing Shares acquired upon the exercise of an Option, if those Shares remain subject to repurchase or redemption under the provisions of the Option Agreement, the Shareholders Agreement, or any other agreement between the Company and the Participant, or if those Shares are collateral for a loan or obligation due to the Company.

 

 

(iii)                               Exercise of an Option in any manner shall result in a decrease in the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

 

(iv)                              Unless the Optionee exercises the Option in accordance with the provision set forth in 6(g) above, the Optionee shall not acquire or entitled to any rights of the Restricted Shares, including not but limited to income and right to distribution of remaining assets.

 

(h)                                 Acquisition of Restricted Shares. Pursuant to section 6(g) above, the Restricted Share Agreement has been duly executed and enters into force, a Service Provider has the right to Restricted Shares.

 

(i)                                     Termination of Service (other than by death or Disability).

 

i) If an Optionee ceases to be a Service Provider for any reason other than because of death or Disability, then the Optionee’s Options shall expire on the earliest of the following occasions:

 

(A)                               The expiration date determined by Section 6(d) hereof;

 

(B)                               The 7th day following the termination of the Optionee’s relationship as a Service Provider for any reason other than that in Section 6(g)i)(C); and

 

(C)                               Immediately expired upon termination or demission of such Optionee’s relationship as a Service Provider due to infringement of Company’s interest by such Optionee at Company’s judgment.

 

(ii)                                  Under Section 6(g)i), unless the Option Agreement provides otherwise, the Company may, at its sole discretion, choose to redeem the vested Optioned Shares of such Service Provider at the Company’s determined price, or allow such optionee to decide whether to exercise the vested Optioned Shares within 7 days after the termination by paying the total exercise price in one lump sum, but only to the extent that the Option was vested and exercisable as of expiration date determined by Section 6(d) hereof. The balance of the Shares subject to the Option shall be forfeited on the expiration date.

 

(j)                                    Leaves of Absence. Unless otherwise determined by the Administrator, for purposes of Section 6 hereof, the service of an Optionee as a Service Provider shall be deemed to continue while the Optionee is on a bona fide leave of absence, if such leave was approved by the Company in writing. Unless otherwise determined by the Administrator and subject to Applicable Law, vesting of an Option shall be suspended during any unpaid leave of absence.

 

 

 

(k)                                 Death or Disability of Optionee.

 

(i)                                     If an Optionee ceases to be a Service Provider as a result of the Optionee’s death or Disability, then the Optionee’s Option shall expire on the earlier of the following dates:

 

(A)                               The expiration date determined by Section 6(d) hereof; and

 

(B)                               The last day of the six-month period following the Optionee’s death or Disability, or such later date as the Administrator may determine and specify in the Option Agreement.

 

(ii) The Company or the founder of the Company may redeem/purchase all or part of the Optionee’s Option at the Fair Market Value of such Option, and rest of Optionee’s vested Option Shares, which are not fully redeemed or repurchased, may be exercised at any time before the expiration of the Option as set forth in Section 6(g)(i) hereof by the Optionee, executors or administrators of the Optionee’s estate or by any person who has acquired the Option directly from the Optionee by beneficiary designation, bequest, or inheritance, but only to the extent that the Option was vested and exercisable as of the date of the Optionee’s death or Disability, or had become vested and exercisable as a result of the death, unless the Option Agreement provides otherwise. The balance of the Shares subject to the Option shall be forfeited upon the Optionee’s death or Disability. Any unvested Options or Optioned Shares subject to the portion of the Option that are vested as of the Optionee’s death or Disability but that are not purchased prior to the expiration of the Option pursuant to this Section 6(k)(ii) shall be forfeited immediately following the Option’s expiration.

 

(l)                                     Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions, rights of repurchase or redemption, rights of first refusal, and other transfer restrictions as the Administrator may determine, and subject to any and all transfer restrictions under the Shareholders Agreement. The restrictions described in the preceding sentence shall be set forth in the applicable Option Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally.

 

7.                                      Terms and Conditions of Share Purchase Rights.

 

(a)                                 Restricted Share Purchase Agreement. Each Share Purchase Right under the Plan shall be evidenced by a Restricted Share Purchase Agreement between the Purchaser and the Company. Each Share Purchase Right shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and that the Administrator deems appropriate for inclusion in a Restricted Share Purchase Agreement. The provisions of the various Restricted Share Purchase Agreements entered into under the Plan need not be identical.

 

(b)                                 Duration of Offers and Nontransferability of Share Purchase Rights. Any Share Purchase Rights granted under the Plan shall automatically expire if not exercised by the Purchaser within 30 days (or such longer time as is specified in the Restricted Share Purchase Agreement) after the Date of Grant. Unless otherwise specified in the Restricted Share Purchase Agreement, Share Purchase Rights shall not be transferable and shall be exercisable only by the Purchaser to whom the Share Purchase Right was granted.

 

 

(c)                                  Purchase Price. The Purchase Price shall be determined by the Administrator in its sole discretion. The Purchase Price shall be payable in a form described in Section 9 hereof.

 

(d)                                 Restrictions on Transfer of Shares. Any Shares awarded or sold pursuant to Share Purchase Rights shall be subject to such special forfeiture conditions, rights of repurchase or redemption, rights of first refusal, and other transfer restrictions as the Administrator may determine, and subject to any and all transfer restrictions under the Shareholders Agreement. The restrictions described in the preceding sentence shall be set forth in the applicable Restricted Share Purchase Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally. Unless otherwise determined by the Administrator and subject to Applicable Law, vesting of Shares acquired pursuant to a Restricted Share Purchase Agreement shall be suspended during any unpaid leave of absence.

 

(e)                                  Forfeiture/Repurchase. Upon termination of employment or service during the applicable restriction period, Restricted Shares that are at that time subject to restrictions shall be forfeited or repurchased in accordance with the Restricted Share Purchase Agreement; provided, however, the Administrator may (a) provide in any Restricted Share Purchase Agreement that restrictions or forfeiture and repurchase conditions relating to Restricted Shares will be waived in whole or in part in the event of of terminations resulting from specified causes, and (b) in other cases waive in whole or in part restrictions or forfeiture and repurchase conditions relating to Restricted Shares. .

 

8.                                      Withholding Taxes. As a condition to the exercise of an Option or purchase of Restricted Shares, the Participant (or in the case of the Participant’s death or in the event of a permissible transfer of Awards hereunder, the person exercising the Option or purchasing Restricted Shares) shall make such arrangements as the Administrator may require for the satisfaction of any applicable withholding taxes arising in connection with the exercise of an Option or purchase of Restricted Shares under the Applicable Law. The Participant (or in the case of the Participant’s death or in the event of a permissible transfer of Awards hereunder, the person exercising the Option or purchasing Restricted Shares) also shall make such arrangements as the Administrator may require for the satisfaction of withholding tax obligations under Applicable Law that may arise in connection with the disposition of Shares acquired by exercising an Option or purchasing Restricted Shares. The Company shall not be required to issue any Shares under the Plan until the foregoing obligations are satisfied. Without limiting the generality of the foregoing, upon the exercise of the Option or delivery of Restricted Shares, the Company shall have the right to withhold taxes from any compensation or other amounts that the Company may owe to the Participant, or to require the Participant to pay to the Company the amount of any taxes that the Company may be required to withhold with respect to the Shares issued to the Participant. Without limiting the generality of the foregoing, the Administrator in its discretion may authorize the Participant to satisfy all or part of any withholding tax liability by (i) having the Company withhold from the Shares that would otherwise be issued upon the exercise of an Option or purchase of Restricted Shares that number of Shares having a Fair Market Value, as of the date the withholding tax liability arises, equal to the portion of the Company’s withholding tax liability to be so satisfied or (ii) by delivering to the Company previously owned and unencumbered Shares having a Fair Market Value, as of the date the withholding tax liability arises, equal to the amount of the Company’s withholding tax liability to be so satisfied. Subject to the preceding sentence, the exercisability provisions of any Option Agreement and rights to acquire Restricted Shares shall be determined by the Administrator in its sole discretion.

 

 

9.                                      Payment for Shares. The consideration to be paid for the Shares to be issued under the Plan, including the method of payment, shall be determined by the Administrator, subject to the provisions in this Section 9.

 

(a)                                 General Rule. The entire Purchase Price or Exercise Price (as the case may be) for Shares issued under the Plan shall be payable in cash or cash equivalents at the time when the Shares are purchased, except as otherwise provided in this Section 9.

 

(b)                                 Surrender of Shares. To the extent that an Option Agreement so provides, all or any part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, Shares that are already owned by the Optionee. These Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value on the date the Option is exercised. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if this action would subject the Company to adverse accounting consequences, as determined by the Administrator.

 

(c)                                  Services Rendered. At the discretion of the Administrator and to the extent so provided in the agreements evidencing Awards of Shares under the Plan, Shares may be awarded under the Plan in consideration of services rendered to the Company or any Parent or Subsidiary prior to the Award.

 

(d)                                 Promissory Note. At the discretion of the Administrator and to the extent an Option Agreement or a Restricted Share Purchase Agreement so provides, all or a portion of the Exercise Price or Purchase Price (as the case may be) may be paid with a promissory note in favor of the Company. The Shares shall be pledged as security for payment of the principal amount of the promissory note and interest thereon. The interest rate payable under the terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the imputation of additional interest. Subject to the foregoing, the Administrator (at its sole discretion) shall specify the term, interest rate, amortization requirements (if any), and other provisions of the promissory note.

 

(e)                                  Exercise/Sale. At the discretion of the Administrator and to the extent an Option Agreement so provides, and if the Shares are publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the Company) or an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes.

 

(f)                                   Exercise/Pledge. At the discretion of the Administrator and to the extent an Option Agreement so provides, and if the Shares are publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the Company) or an irrevocable direction to pledge Shares to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes.

 

 

(g)                                  Other Forms of Consideration. At the discretion of the Administrator and to the extent an Option Agreement or a Restricted Share Purchase Agreement so provides, all or a portion of the Exercise Price or Purchase Price may be paid by any other form of consideration and method of payment to the extent permitted by Applicable Law.

 

10.                               Nontransferability of Awards. Unless otherwise determined by the Administrator and provided in the applicable Option Agreement or Restricted Share Purchase Agreement (or be amended to provide), no Award shall be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner (whether by operation of law or otherwise) other than by will or applicable laws of descent and distribution or (except in the case of an Incentive Stock Option) pursuant to a qualified domestic relations order, and shall not be subject to execution, attachment, or similar process. Upon any attempt to pledge, assign, hypothecate, transfer, or otherwise dispose of any Award or of any right or privilege conferred by this Plan contrary to the provisions hereof, or upon the sale, levy or attachment or similar process upon the rights and privileges conferred by this Plan, such Award shall thereupon terminate and become null and void. Awards may be exercised (including the purchase of Restricted Shares thereunder in the event of a Share Purchase Right) during the lifetime of the Participant only by the Participant.

 

11.                               Rights as a Member. Until the Shares actually are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a member shall exist with respect to the Shares, notwithstanding the exercise of the Award. No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 12 of the Plan.

 

12.                               Adjustment of Shares.

 

(a)                                 Changes in Capitalization. Subject to any required action by the members of the Company, the class(es) and number and type of Shares that have been authorized for issuance under the Plan but as to which no Awards have yet been granted or that have been returned to the Plan upon cancellation or expiration of an Award, and the class(es), number, and type of Shares covered by each outstanding Award, as well as the price per Share covered by each outstanding Award, shall be proportionately adjusted for any increase, decrease, or change in the number or type of outstanding Shares or other securities of the Company or exchange of outstanding Shares or other securities of the Company into or for a different number or type of shares or other securities of the Company or successor entity, or for other property (including, without limitation, cash) or other change to the Shares resulting from a share split, reverse share split, share dividend, dividend in property other than cash, combination of shares, exchange of shares, combination, consolidation, recapitalization, reincorporation, reorganization, change in corporate structure, reclassification, or other distribution of the Shares effected without receipt of consideration by the Company; provided, however, that the conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” The adjustment contemplated in this Section 12(a) shall be made by the Board, whose determination shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of equity securities of the Company of any class, or securities convertible into equity securities of the Company of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number, type, or price of Shares subject to an Award.

 

 

(b)                                 Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Participant as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Optionee to have the right to exercise his or her Option until fifteen (15) days prior to the proposed dissolution or liquidation as to all of the Optioned Shares covered thereby, including Shares as to which the Option would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase or redemption option applicable to any Shares purchased upon exercise of an Option or Restricted Shares purchased under a Share Purchase Right shall lapse as to all such Shares, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.

 

(c)                                  Change in Control. In the event of a Change in Control, unless the Option Agreement or Restricted Share Purchase Agreement provides otherwise, each outstanding Option shall be assumed or an equivalent option shall be substituted by, and each right of the Company to repurchase or redeem Shares upon termination of a Purchaser’s relationship as a Service Provider shall be assigned to, the successor corporation or a Parent or Subsidiary of the successor corporation. If, in the event of a Change in Control, the Option is not assumed or substituted, or the repurchase or redemption right is not assigned, in the case of an outstanding Option, the Option shall fully vest immediately and the Participant shall have the right to exercise the Option as to all of the Optioned Shares, including Shares as to which it would not otherwise be vested or exercisable, and, in the case of Restricted Shares, the Company’s repurchase or redemption right shall lapse immediately and all of the Restricted Shares subject to the repurchase or redemption right shall become vested. If the Option becomes fully vested and exercisable, in lieu of assumption or substitution in the event of a Change in Control, the Administrator shall notify the Optionee in writing or electronically that the Option shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the Option shall terminate upon the expiration of such period, provided that, in the event of the proposed merger or consolidation of the Company with any other corporation as set forth in Section 2(f)(iii) hereof, the Administrator shall notify each Optionee as soon as practicable prior to the effective date of such proposed transaction. the Company has the right to redeem/purchase all or part of the Optionee’s Option at the Fair Market Value of such Option, and the Company may at its best efforts to allow such Optionee to swap the rest of the vested Optioned Shares, which are not fully redeemed or repurchased, but only to the extent that the Option was vested and exercisable as of the date fifteen (15) days prior to the proposed transaction, to the options of the successor corporation (subject to the option plan of the successor corporation and terms and conditions thereunder). The balance of the Shares subject to the Option shall be forfeited as of the date fifteen (15) days prior to the proposed transaction, unless the Option Agreement or Restricted Share Purchase Agreement provides otherwise. For purposes of this Section 12(c), an Option shall be considered assumed if, following the Change in Control, the Option confers the right to purchase or receive, for each Optioned Share immediately prior to the Change in Control, the consideration (whether shares, cash, or other securities or property) received in connection with the Change in Control by holders of Shares for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if the consideration received in the Change in Control is not solely common stock or ordinary shares of the successor corporation or its Parent or Subsidiary, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each Optioned Share, to be solely common stock or ordinary shares of the successor corporation or its Parent or Subsidiary equal in Fair Market Value to the per Share consideration received by holders of Shares in the Change in Control.

 

 

(d)                                 [Reserved.]

 

(e)                                  Reservation of Rights. Except as provided in this Section 12 and in the applicable Option Agreement or Restricted Share Purchase Agreement, a Participant shall have no rights by reason of (i) any subdivision or consolidation of Shares or other securities of any class, (ii) the payment of any dividend, or (iii) any other increase or decrease in the number of Shares or other securities of any class. Any issuance by the Company of equity securities of any class, or securities convertible into equity securities of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Optioned Shares. The grant of an Option or Share Purchase Right shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell, or transfer all or any part of its business or assets.

 

13.                               Date of Grant. The Date of Grant of an Award shall, for all purposes, be the date on which the Administrator makes the determination to grant the Award, or such other later date as is determined by the Administrator.

 

14.                               Securities Law Requirements.

 

(a)                                 Legal Compliance. Notwithstanding any other provision of the Plan or any agreement entered into by the Company pursuant to the Plan, the Company shall not be obligated, and shall have no liability for failure to deliver any Shares under the Plan unless the issuance and delivery of Shares comply with (or are exempt from) all Applicable Law, including, without limitation, the Securities Act, U.S. state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

 

(b)                                 Investment Representations. Shares delivered under the Plan shall be subject to transfer restrictions, and the person acquiring the Shares shall, as a condition to the exercise of an Option or the purchase of Restricted Shares if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with Applicable Law, including, without limitation, the representation and warranty at the time of acquisition of the Shares that the Shares are being acquired only for investment purposes and without any present intention to sell, transfer, or distribute the Shares.

 

 

15.                               Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

 

16.                               [Reserved.]

 

17.                               Duration and Amendment.

 

(a)                                 Term of Plan. Subject to approval by members of the Company in accordance with Section 16 hereof, the Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by the members of the Company as described in Section 16 hereof. Unless sooner terminated under Section 17(b) hereof, the Plan shall continue in effect for a term of ten (10) years from the later of (i) the effective date of the Plan, or (ii) the date of the most recent Board approval of an increase in the number of Shares reserved for issuance under the Plan.

 

(b)                                 Amendment and Termination. The Board may at any time amend, alter, suspend, or terminate the Plan.

 

(c)                                  Approval by Members. The Board shall obtain approval of the members of any Plan amendment to the extent necessary and desirable to comply with Applicable Law.

 

(d)                                 Effect of Amendment or Termination. No amendment, alteration, suspension, or termination of the Plan shall materially and adversely impair the rights of any Participant with respect to an outstanding Award, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. No Shares shall be issued or sold under the Plan after the termination thereof, except upon exercise of an Award granted prior to the termination of the Plan.

 

18.                               Legending Share Certificates. In order to enforce any restrictions imposed upon Shares issued upon the exercise of Options or the acquisition of Restricted Shares, including, without limitations, the restrictions described in Sections 6(i) and 7(c) hereof, the Administrator may cause a legend or legends to be placed on any share certificates representing the Shares, which legend or legends shall make appropriate reference to the restrictions, including, without limitation, a restriction against sale of the Shares for any period as may be required by Applicable Law.

 

 

19.                               No Retention Rights. Neither the Plan nor any Award shall confer upon any Participant any right to continue his or her relationship as a Service Provider with the Company for any period of specific duration or interfere in any way with his or her right or the right of the Company (or any Parent or Subsidiary employing or retaining the Participant), which rights are hereby expressly reserved by each, to terminate this relationship at any time, with or without cause, and with or without notice.

 

20.                               No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Parent or Subsidiary and a Participant or any other person. To the extent that any Participant acquires a right to receive payments from the Company or any Parent or Subsidiary pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company, a Parent, or any Subsidiary.

 

21.                               No Rights to Awards. No Participant, eligible Service Provider, or other person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of a Service Provider, Participant, or holders or beneficiaries of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to any Participant or with respect to different Participants.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]Exhibit 10.4

 

	
 
    

 

Sun Qin

 

Chen Lei

 

Zhang Zhen

 

Linzhi Tencent Technology Co., Ltd

 

Hangzhou Weimi Network Technology Co., Ltd

 

and

 

Hangzhou Aimi Network Technology Co., Ltd

 

Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement

 

	
 
    

 

April 25, 2018

 

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Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement

 

This Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement (this “Agreement”) is executed by and among the following parties on April 25, 2018:

 

(1)                       Hangzhou Weimi Network Technology Co., Ltd, a wholly foreign-owned enterprise incorporated and existing under the Laws of the People’s Republic of China with its registered address at Room 7B14, Building 1, No. 39 Yi Le Road, Xihu District, Hangzhou (hereinafter referred to as the “WFOE”);

 

(2)                       Sun Qin, with the ID No. ***;

 

(3)                       Chen Lei, with the ID No. ***;

 

(4)                       Zhang Zhen, with the ID No. ***;

 

(5)                       Linzhi Tencent Technology Co., Ltd, a company with its registered address at 202-3 Linzhi Biological Technology Industrial Park, Bayi Town, Bayi District, Linzhi City, Tibet.

 

(Sun Qin, Chen Lei, Zhang Zhen, and Linzhi Tencent Technology Co., Ltd shall be referred to as the “Shareholder(s)” respectively and collectively)

 

(6)                       Hangzhou Aimi Network Technology Co., Ltd, a company with its registered address at Room 7B13, Building 1, No. 39 Yi Le Road, Xihu District, Hangzhou (hereinafter referred to as the “Company”).

 

(In this Agreement, each of the Parties above shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”)

 

WHEREAS:

 

1.                            The Shareholders are the shareholders currently on record of the Company aggregately holding 100% of the equity interest in the Company, among which Sun Qin holds 4.41%, Chen Lei holds 86.57%, Zhang Zhen holds 0.10%, and Linzhi Tencent Technology Co., Ltd holds 8.92% of the equity interest in the Company; and

 

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2.                            Sun Qin, Zhang Yi, Zhang Zhen, the Company, the WFOE and other relevant parties entered into a Second Amended and Restated Shareholders’ Voting Rights Proxy Agreement on June 28, 2017 (hereinafter referred as the “Original Agreement”).

 

3.                            The Shareholders intend to respectively entrust the individual designated by the WFOE to exercise all their shareholders’ voting rights in the Company, and the WFOE intends to designate an individual to accept such entrustment. Upon amicable discussion and negotiation, the Parties agree as follows:

 

1.                            Voting Rights Entrustment

 

1.1                     The Shareholders each hereby irrevocably undertake to respectively execute a proxy letter (as set out in Schedule I to this Agreement, hereinafter referred to as the “Proxy Letter”), to authorize the individual then designated by the WFOE (hereinafter referred to as the “Proxy”) to exercise on their behalf the following rights they are respectively entitled to as shareholders of the Company and in accordance with the articles of association of the Company effective then (hereinafter collectively referred to as the “Proxy Rights”):

 

(1)             attending the shareholders’ meetings as the agent of each Shareholder;

 

(2)             exercising voting rights on all issues required to be discussed and resolved by the shareholders’ meeting (including but without limitation to the appointment, election and removal of directors and supervisors, deciding the appointment or dismissal of general manager, deputy general manager, financial manager and other senior management), and the sale or transfer of the Shareholder’s equity interest in the Company in whole or in part on behalf of each Shareholder;

 

(3)             proposing to convene the interim shareholders’ meetings; and

 

(4)             other shareholders’ voting rights under the articles of association of the Company (including any other shareholders’ voting rights stipulated after an amendment to such articles of association).

 

1.2                     The aforesaid entrustment and authorization are subject to the consent by the WFOE of such entrustment and authorization and that the Proxy is a citizen of the People’s Republic of China. When and only when the WFOE issues a written notice to each Shareholder to replace the Proxy, each Shareholder shall immediately authorize the other PRC citizen then appointed by the WFOE to exercise the aforesaid Proxy Rights, and the new entrustment will replace the original entrustment immediately upon being made, except for which, each Shareholder shall not revoke the entrustment and authorization granted to the Proxy.

 

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1.3                     The Proxy will carefully and diligently exercise the entrusted rights and perform the entrusted duties within the scope of authorization under this Agreement; the Shareholders each acknowledge and assume corresponding liabilities for any legal consequences arising out of the exercise by the Proxy of the aforesaid Proxy Rights.

 

1.4                     The Shareholders each hereby acknowledge that, the Proxy shall exercise the aforesaid Proxy Rights with prior notice but without prior consent of the Shareholders. The Proxy shall timely inform the Shareholders after each resolution or each proposal on convening an interim shareholders’ meeting is adopted.

 

2.                            Right to Information

 

For the purpose of exercising the Proxy Rights under this Agreement, the Proxy is entitled to be informed of the operations, business, customers, finance, employees and any other relevant information of the Company and to access relevant materials of the Company, and the Company shall provide full cooperation with respect thereto.

 

3.                            Exercise of the Proxy Rights

 

3.1                     The Shareholders each shall provide full assistance in respect of the exercise by the Proxy of the Proxy Rights, including, when necessary (for example, in order to meet the requirements of submitted documents needed for approval of, registration, and filing with governmental authorities), timely executing the resolutions of the shareholders’ meeting adopted by the Proxy or other relevant legal documents.

 

3.2                     If at any time during the term of this Agreement, the grant or exercise of the Proxy Rights under this Agreement cannot be realized for any reason (other than default of the Shareholders or the Company), the Parties shall immediately seek an alternative method closest possible to the provisions which cannot be realized and shall execute a supplementary agreement when necessary to amend or modify the terms of this Agreement so that the purpose of this Agreement will continue to be achieved.

 

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4.                            Exemption of Liability and Compensation

 

4.1                     The Parties acknowledge that under no circumstances shall the WFOE be required to assume any liability or make any economic compensation or compensation in other aspects to the other Parties or to any third party in respect of the exercise of the Proxy Rights under this Agreement by the designated Proxy of the WFOE.

 

4.2                     The Shareholders each agree to indemnify and hold harmless the WFOE against all actual or potential losses arising from the exercise of the Proxy Rights by the Proxy, including but without limitation to any loss arising out of litigations, pursuits for recovery, arbitrations or claims for compensation initiated by any third party against the WFOE, or administrative investigations or penalties by governmental authorities, except for those losses resulting from the willful conduct or gross negligence of the WFOE.

 

5.                            Representations and Warranties

 

5.1                     The Shareholders hereby severally but not jointly represent and warrant that:

 

1.              They are natural/legal persons with full civil capacity; they have full and independent legal status and legal capacity, and may sue or be sued as an independent party.

 

2.              They have full power and authority to execute and deliver this Agreement and all other documents to be executed by it in connection with the transactions contemplated in this Agreement as well as full power and authority to consummate the transactions contemplated in this Agreement.

 

3.              This Agreement is lawfully and duly executed by and delivered to them. This Agreement constitutes lawful and binding obligations enforceable against them in accordance with the terms of this Agreement.

 

4.              They are lawful shareholders on record of the Company as of the date of this Agreement; other than the rights created under this Agreement, Second Amended and Restated Shareholders’ Voting Rights Proxy Agreement executed among the WFOE and them dated June 28, 2017 and Second Amended and Restated Exclusive Option Agreement executed among the Company, the WFOE and them, the Proxy Rights are free from any third-party rights. In accordance with this Agreement, the Proxy may fully and sufficiently exercise the Proxy Rights under the articles of association of the Company effective then.

 

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5.2                     The WFOE and the Company hereby respectively represent and warrant that:

 

1.              Each of them is a limited liability company duly registered and lawfully existing under the laws of the People’s Republic of China with independent legal personality; it has full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and may sue or be sued as an independent party.

 

2.              Each of them has full internal corporate power and authority to execute this Agreement and other documents to be executed by it in connection with the transactions contemplated in this Agreement as well as full power and authority to consummate the transactions contemplated in this Agreement.

 

5.3                     The Company further represents and warrants that, the Shareholders constitute all lawful shareholders on record of the Company as of the date of this Agreement. Pursuant to this Agreement, the Proxy may fully and sufficiently exercise the Proxy Rights under the articles of association of the Company effective then.

 

6.                            Confidentiality

 

6.1                     During the term of and after the termination of this Agreement, each Party shall maintain in strict confidence the following information:

 

(1)         The execution, performance of this Agreement and the contents of this Agreement;

 

(2)         The trade secrets, proprietary information, and customer information (collectively referred to as the “Confidential Information”) of the WFOE that it knows or receives as a result of the execution and performance of this Agreement.

 

Each Party shall use such Confidential Information only for the purpose of fulfilling its obligations under this Agreement. Without other Parties’ written consent, any Party shall not disclose the above Confidential Information to any third parties; otherwise it shall bear the liability for breach of the Agreement and compensate for the losses.

 

6.2                     After the termination of this Agreement, any Party shall return, destroy or otherwise dispose of all documents, materials or software containing Confidential Information upon the request of the other Party and cease the use of such Confidential Information.

 

6.3                     Notwithstanding otherwise provided in this Agreement, the effectiveness of this section shall not be affected by the suspension or termination of this Agreement.

 

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7.                            Term of Agreement

 

7.1                     This Agreement shall become effective after being executed or sealed by the Parties or executed by their legal representatives; unless terminated in advance by written agreement of the Parties or pursuant to Section 9.1 of this Agreement, this Agreement shall continue to be effective.

 

7.2                     If any of the Shareholders transfers, with prior consent of the WFOE, all of his/her/its equity interest in the Company, such Shareholder shall cease to be a party to this Agreement, provided that the obligations and undertakings of the other Parties under this Agreement shall not be affected thereby.

 

8.                            Notice

 

Any notice or other correspondence required by or made pursuant to this Agreement shall be delivered in person, by registered post, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such Party as set forth below. The dates on which notices shall be deemed effectively given shall be determined as follows:

 

Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively given on the date of delivery.

 

Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of transmission). For the purpose of notices, the addresses of the Parties are as follows:

 

Sun Qin

Address: ***

Tel: ***

 

Chen Lei

Address: ***

Tel: ***

 

Zhang Zhen

Address: ***

Tel: ***

 

7

 

Linzhi Tencent Technology Co., Ltd.

Address: ***

Email: ***

CC: ***

***

Email: ***

 

Hangzhou Weimi Network Technology Co., Ltd.

Address: ***

Tel: ***

 

Hangzhou Aimi Network Technology Co., Ltd.

Address: ***

Tel: ***

 

Any Party may at any time change its address for notices by a notice delivered to the other Parties in accordance with the terms hereof.

 

9.                            Liability for Default

 

9.1                     The Parties agree and acknowledge that if any Party (hereinafter referred to as the “Defaulting Party”) substantially breaches any provision of this Agreement, or substantially fails to perform any obligation under this Agreement, such shall constitute a Default under this Agreement (hereinafter referred to as the “Default”) and any Party of the other Non-defaulting Parties (hereinafter referred to as the “Non-defaulting Parties”) shall be entitled to require the Defaulting Party to cure such Default or take remedies within a reasonable time period. If the Defaulting Party fails to cure such Default or take remedies within fifteen days after the Non-defaulting Parties notify the Defaulting Party in writing and require it to cure such Default, the relevant Non-defaulting Parties are entitled to at their absolute discretion (1) terminate this Agreement and require Defaulting Party to indemnify it for all the damages; or (2) require the specific performance of the Defaulting Party’s obligations under this Agreement and require the Defaulting Party to indemnify it for all the damages. For the avoidance of doubt, the Shareholders or the Company will be entitled to terminate this Agreement pursuant to this section merely in the event of the Default of the WFOE.

 

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9.2                     The Parties agree and acknowledge that except for otherwise provided by laws and this Agreement, the Shareholders and the Company shall in no event terminate this Agreement with any reason.

 

9.3                     Notwithstanding otherwise provided in this Agreement, the effectiveness of this section shall not be affected by the dissolution or termination of this Agreement.

 

10.                     Miscellaneous

 

10.1              This Agreement is made in Chinese and executed in six (6) originals. Each Party shall hold one (1) copy.

 

10.2              The entry into, effectiveness, performance, amendment, interpretation and termination of this Agreement shall be governed by the laws of the People’s Republic of China.

 

10.3              Any dispute arising out of and in connection with this Agreement shall be settled by the Parties through amicable discussion and negotiation and shall, in the absence of an agreement reached by the Parties within thirty days from its occurrence, be submitted by any Party to Hangzhou Arbitration Commission for arbitration in accordance with the arbitration rules of such Commission effective then in Hangzhou. The arbitral award shall be final and binding on the Parties to this Agreement.

 

10.4              No rights, power or remedies granted to each Party by any provision of this Agreement shall preclude any other rights, power or remedies enjoyed by such Party in accordance with the laws and any other provisions under this Agreement and no exercise by a Party of any of its rights, power and remedies shall preclude its exercise of its other rights, power and remedies.

 

10.5              No failure or delay by a Party in exercising any right, power or remedy pursuant to this Agreement or any laws (hereinafter referred to as “Such Rights”) shall result in a waiver of Such Rights; and no single or partial waiver of Such Rights shall preclude such Party from exercising Such Rights in any other manner or from exercising other Such Rights.

 

10.6              The section headings in this Agreement are for convenience of reference only and shall in no event be used in or affect the interpretation of the provisions of this Agreement.

 

9

 

10.7              Each provision contained in this Agreement shall be severable and independent from any other provisions of this Agreement, and if at any time any one or more provisions of this Agreement become invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

 

10.8              Any amendments or supplements to this Agreement shall be made in writing, and shall take effect only if duly executed by the Parties to this Agreement.

 

10.9              Without prior written consent of the other Parties, any Party shall not transfer any of its rights and/or obligations under this Agreement to any third party.

 

10.10       This Agreement shall be binding upon the lawful successors of the Parties.

 

[Intentionally left blank below]

 

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(This page is intentionally left as the signature page of Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement)

 

IN WITNESS WHEREOF, this Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement has been executed by the Parties as of the date and at the place first above written.

 

	
Sun Qin
    
	
 
    
	
Signature:
    	
/s/ Sun Qin
    	
 
    
	
 
    
	
Hangzhou Weimi Network   Technology Co., Ltd.
    
	
 
    
	
(Seal)
    
	
 
    
	
Signature:
    	
/s/ Sun Qin
    	
 
    
	
 
    
	
Name: Sun Qin
    
	
 
    
	
Title: Legal Representative
    
	
 
    
	
Hangzhou Aimi Network   Technology Co., Ltd.
    
	
 
    
	
(Seal)
    
	
 
    
	
Signature:
    	
/s/ Sun Qin
    	
 
    
	
 
    
	
Name: Sun Qin
    
	
 
    
	
Title: Legal Representative
    

 

 

(This page is intentionally left as the signature page of Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement)

 

IN WITNESS WHEREOF, this Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement has been executed by the Parties as of the date and at the place first above written.

 

	
Chen Lei
    
	
 
    
	
Signature:
    	
/s/ Chen Lei
    	
 
    

 

 

(This page is intentionally left as the signature page of Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement)

 

IN WITNESS WHEREOF, this Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement has been executed by the Parties as of the date and at the place first above written.

 

	
Zhang Zhen
    	
 
    
	
 
    	
 
    
	
Signature:
    	
/s/ Zhang Zhen
    	
 
    
			

 

 

(This page is intentionally left as the signature page of Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement)

 

IN WITNESS WHEREOF, this Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement has been executed by the Parties as of the date and at the place first above written.

 

	
Linzhi Tencent Technology   Co., Ltd.
    	
 
    
	
 
    	
 
    
	
(Seal)
    	
 
    
	
 
    	
 
    
	
Signature:
    	
/s/ Authorized   Signatory
    	
 
    
	
 
    	
 
    
	
Title: Legal Representative
    	
 
    
			

 

 

Schedule I:

 

Proxy Letter

 

This Proxy Letter (hereinafter referred to as the “Proxy Letter”), is executed by Sun Qin (ID No. ***) on            , and issued to            (ID No.           ) (hereinafter referred to as the “Proxy”) as designated by Hangzhou Weimi Network Technology Co., Ltd (the “WFOE”).

 

I, Sun Qin, hereby grant to the Proxy a general proxy power authorizing the Proxy to exercise as my agent and in the name of me, the following rights I enjoy as a shareholder of Hangzhou Aimi Network Technology Co., Ltd (hereinafter referred to as the “Company”):

 

(1)             as my agent, attending the shareholders’ meetings;

 

(2)             exercising on behalf of me voting rights on all issues required to be discussed and resolved by the shareholders’ meeting (including but without limitation to the appointment, election and removal of directors and supervisors, deciding the appointment or dismissal of general manager, deputy general manager, financial manager and other senior management), and the sale or transfer of my equity interest in the Company in whole or in part;

 

(3)             as my agent, proposing to convene the interim shareholders’ meetings; and

 

(4)             as my agent for other shareholders’ voting rights under the articles of association of the Company (including any other shareholders’ voting rights stipulated after an amendment to such articles of association).

 

I hereby irrevocably confirm that unless the WFOE issues an instruction to me requesting the replacement of the Proxy, this Proxy Letter shall remain valid until the expiry or advance termination of the Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement executed by and among the WFOE, the Company and the shareholders of the Company dated         .

 

This Letter is hereby issued.

 

	
 
    	
Name: Sun Qin
    
	
 
    	
Signature:
    	
 
    
	
 
    	
Date:
    	
 
    
				

 

 

Proxy Letter

 

This Proxy Letter (hereinafter referred to as the “Proxy Letter”), is executed by Chen Lei (ID No. ***) on            , and issued to            (ID No.           ) (hereinafter referred to as the “Proxy”) as designated by Hangzhou Weimi Network Technology Co., Ltd (the “WFOE”).

 

I, Chen Lei, hereby grant to the Proxy a general proxy power authorizing the Proxy to exercise as my agent and in the name of me, the following rights I enjoy as a shareholder of Hangzhou Aimi Network Technology Co., Ltd (hereinafter referred to as the “Company”):

 

(1)             as my agent, attending the shareholders’ meetings;

 

(2)             exercising on behalf of me voting rights on all issues required to be discussed and resolved by the shareholders’ meeting (including but without limitation to the appointment, election and removal of directors and supervisors, deciding the appointment or dismissal of general manager, deputy general manager, financial manager and other senior management), and the sale or transfer of my equity interest in the Company in whole or in part;

 

(3)             as my agent, proposing to convene the interim shareholders’ meetings; and

 

(4)             as my agent for other shareholders’ voting rights under the articles of association of the Company (including any other shareholders’ voting rights stipulated after an amendment to such articles of association).

 

I hereby irrevocably confirm that unless the WFOE issues an instruction to me requesting the replacement of the Proxy, this Proxy Letter shall remain valid until the expiry or advance termination of the Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement executed by and among the WFOE, the Company and the shareholders of the Company dated           .

 

This Letter is hereby issued.

 

	
 
    	
Name: Chen Lei
    
	
 
    	
Signature:
    	
 
    
	
 
    	
Date:
    	
 
    
				

 

 

Proxy Letter

 

This Proxy Letter (hereinafter referred to as the “Proxy Letter”), is executed by Zhang Zhen (ID No. ***) on           , and issued to            (ID No.           ) (hereinafter referred to as the “Proxy”) as designated by Hangzhou Weimi Network Technology Co., Ltd (the “WFOE”).

 

I, Zhang Zhen, hereby grant to the Proxy a general proxy power authorizing the Proxy to exercise as my agent and in the name of me, the following rights I enjoy as a shareholder of Hangzhou Aimi Network Technology Co., Ltd (hereinafter referred to as the “Company”):

 

(1)             as my agent, attending the shareholders’ meetings;

 

(2)             exercising on behalf of me voting rights on all issues required to be discussed and resolved by the shareholders’ meeting (including but without limitation to the appointment, election and removal of directors and supervisors, deciding the appointment or dismissal of general manager, deputy general manager, financial manager and other senior management), and the sale or transfer of my equity interest in the Company in whole or in part;

 

(3)             as my agent, proposing to convene the interim shareholders’ meetings; and

 

(4)             as my agent for other shareholders’ voting rights under the articles of association of the Company (including any other shareholders’ voting rights stipulated after an amendment to such articles of association).

 

I hereby irrevocably confirm that unless the WFOE issues an instruction to me requesting the replacement of the Proxy, this Proxy Letter shall remain valid until the expiry or advance termination of the Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement executed by and among the WFOE, the Company and the shareholders of the Company dated           .

 

This Letter is hereby issued.

 

	
 
    	
Name: Zhang Zhen
    
	
 
    	
Signature:
    	
 
    
	
 
    	
Date:
    	
 
    
				

 

 

Proxy Letter

 

This Proxy Letter (hereinafter referred to as the “Proxy Letter”), is executed by Linzhi Tencent Technology Co., Ltd (Registered Address: ***) on           , and issued to            (ID No.           ) (hereinafter referred to as the “Proxy”) as designated by Hangzhou Weimi Network Technology Co., Ltd (the “WFOE”).

 

We, Linzhi Tencent Technology Co., Ltd, hereby grant to the Proxy a general proxy power authorizing the Proxy to exercise as our agent and in the name of us, the following rights we enjoy as a shareholder of Hangzhou Aimi Network Technology Co., Ltd (hereinafter referred to as the “Company”):

 

(1)             as our agent, attending the shareholders’ meetings;

 

(2)             exercising on behalf of us voting rights on all issues required to be discussed and resolved by the shareholders’ meeting (including but without limitation to the appointment, election and removal of directors and supervisors, deciding the appointment or dismissal of general manager, deputy general manager, financial manager and other senior management), and the sale or transfer of our equity interest in the Company in whole or in part;

 

(3)             as our agent, proposing to convene the interim shareholders’ meetings; and

 

(4)             as our agent for other shareholders’ voting rights under the articles of association of the Company (including any other shareholders’ voting rights stipulated after an amendment to such articles of association).

 

We hereby irrevocably confirm that unless the WFOE issues an instruction to us requesting the replacement of the Proxy, this Proxy Letter shall remain valid until the expiry or advance termination of the Third Amended and Restated Shareholders’ Voting Rights Proxy Agreement executed by and among the WFOE, the Company and the shareholders of the Company dated           .

 

This Letter is hereby issued.

 

	
 
    	
Linzhi Tencent Technology   Co., Ltd. (Seal)
    
	
 
    	
Signature:
    	
 
    
	
 
    	
Title: Legal Representative
    
	
 
    	
Date:

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