Document:

Exclusive Option Agreement, dated January 19, 2005

 Exhibit 4.38 
 LAHIJI VALE LIMITED 
 Wang Leilei 
 and 
 Beijing Lei Ting Wan Jun Network Technology Limited 
  
  

 Exclusive Option Agreement 
  

 Dated 19 January 2005 
  

 1 

 Exclusive Option Agreement 
 THIS OPTION AGREEMENT (this “Agreement”) as of this 19th day of
January 2005 is entered into by and among: 
  

	1.	LAHIJI VALE LIMITED, a limited liability company duly incorporated and existing under the laws of British Virgin Islands with its registered address at Offshore Incorporations
Limited, P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands (“Party A”); 

  

	2.	Wang Leilei, a citizen of the People’s Republic of China (“PRC”), whose ID number is 110102197304020437 and whose address is #1001, No.1 Building, Xiao Yang Yi Bin
Bystreet, Dongcheng District, Beijing (“Party B”); and 

  

	3.	Beijing Lei Ting Wan Jun Network Technology Limited, a limited liability company duly incorporated and existing under the PRC laws with its registered address at Room C-610 No.18 Xi
Huan Road (S), Beijing Economic-Technological Development Area, Beijing (“Party C”). 

 In this Agreement, each of Party A, Party B
and Party C shall be hereinafter referred to as a “Party” and collectively the “Parties”. 
 WHEREAS: 
  

	1.	Party B held 20% of the equity interest in Party C; 

  

	2.	Party A and Party B, entered into a Loan Agreement (“Loan Agreement”) on 8 August 2002 and Supplemental Agreement to Loan Agreement (“Supplemental
Agreement”) on 19 January 2005. 

  

	3.	Party C and Beijing Lahiji Science and Technology Development Company Limited, which is a subsidiary company wholly held by Party A, entered into a series of agreements including
Exclusive Technical and Consulting Services Agreement. 

  

 2 

 Now therefore, through friendly negotiation, it is hereby agreed that: 
  

	1.	Stock Option 

  

	1.1	Grant of Stock Option 

 Party B hereby irrevocably grants
to Party A an irrevocable right to purchase, in person or by a designated person (“Designee”), the shares of Party C held by Party B at any time in part or in whole at Party A’s sole and absolute discretion to the extent permitted by
Chinese laws and at the price described in Section 1.3 herein (such right hereinafter the “Stock Option”). No other persons shall be entitled to the Stock Option except Party A and its Designee(s). Party C hereby agrees that Party B
shall have the right to grant the Stock Option to Party A. The term “person” as mentioned hereof shall refer to individuals, corporations, partnerships, partners, enterprises, trusts or non-corporate organizations. 
  

	1.2	Steps of Exercise of Stock Option 

 Subject to the
provisions of PRC laws and regulations, when exercising the Stock Option, Party A shall issue to Party B a written notice (the “Stock Option Notice”) which shall specify the following items: 
  

	 	(1)	The decision of Party A to exercise the Stock Option; 

  

	 	(2)	The number of shares to be purchased from Party B (the “Option Shares”) 

  

	 	(3)	The purchase date / the transfer date. 

  

	1.3	Stock Option Price 

 Unless an appraisal is required
subject to PRC laws, the purchase price of the Option Shares (the “Stock Option Price”) shall be the actual price paid by Party B., 
  

	1.4	Transfer of Option Shares 

 When Party A exercises the
Stock Option: 
  

	 	(1)	Party B shall procure Party C to convene a shareholders meeting promptly, on which the Option Shares transfer from Party B to Party A and / or its Designee(s) shall be approved;

  

 3 

	 	(2)	Party B shall execute a share transfer contract with respect to each transfer with Party A and/or its Designee (whichever is applicable) pursuant to the provisions of this Agreement
and the Stock Option Notice; 

  

	 	(3)	The relevant Parties shall execute all other necessary contracts, agreements or documents, obtain all necessary government approvals and permits and take all necessary actions, to
assign to Party A and/or its Designee(s) the valid title to the Option Shares without any encumbrance of any security interest, and to cause Party A and/or its Designee(s) to become the legal holder(s) of the Option Shares with registration. For the
purpose of this section and this Agreement, “security interest” shall include security, mortgages, third party’s rights or interests, any stock options, acquisition right, right of first refusal, right to offset, ownership detention
or other security arrangements, etc., except for any security interest provided by or arising from this Agreement or Party B’s Share Pledge agreement. The “Party B’s Share Pledge Agreement” as mention in this section and this
Agreement shall refer to the Share Pledge Agreement executed by and between Beijing Lahiji Science and Technology Development Company Limited and Party B as of the same date hereof, in which Party B pledges all of his equity in Party C to Beijing
Lahiji Science and Technology Development Company Limited in order to guarantee Party C’s performance of its obligations under the “Exclusive Technical and Consulting Services Agreement” executed by and between Party C and Beijing
Lahiji Science and Technology Development Company Limited. 

  

	1.5	Payment for the Stock Option Price 

 Since the Parties
agree that Party B shall use the proceeds out of the equity transfer to repay the loan under the Loan Agreement, Party A shall remit the Stock Option Price to Party A’s account for the purpose of repayment on behalf of Party B under the Loan
Agreement. 
  

	2.	Covenants and Undertakings on Stock Option 

  

	2.1	Covenants and Undertakings of Party C 

 Party C hereby
undertakes that: 
  

	(1)	Without the prior written consent of Party A or Beijing Lahiji Science and Technology Development Company Limited, a wholly-controlled subsidiary of Party A in PRC, it shall not
amend, change or modify in any way its Article of Association, or increase or decrease its registered capital, or reform in any way the shareholding structure; 

  

 4 

	 	(2)	It shall maintain its business operation and deal with its business duly and diligently in accordance with the good financial and commercial codes and practices;

  

	 	(3)	Without the prior written consent of Party A or Beijing Lahiji Science and Technology Development Company Limited, a wholly-controlled subsidiary of Party A in PRC, it shall not
sell, assign, transfer, pledge or dispose in any way any rights or benefits in connection with its asset, business or income, or create any other security interest over the same after execution of this Agreement; 

  

	 	(4)	Without the prior written consent of Party A or Beijing Lahiji Science and Technology Development Company Limited, a wholly-controlled subsidiary of Party A in PRC, it shall not
conduct, assume, guarantee or bear any debt, except that (i) the debts are incurred in the normal or daily business other than through a loan; or (ii) the debts have been disclosed to Party A where a written consent has been obtained;

  

	 	(5)	It shall conduct all of its businesses in the ordinary course of business to maintain its asset value, and shall not conduct any act or omission that may affect its operating status
and asset value; 

  

	 	(6)	Without the prior written consent of Party A or Beijing Lahiji Science and Technology Development Company Limited, a wholly-controlled subsidiary of Party A in PRC, it shall not
enter into any material agreements or contracts, except those entered into in the ordinary course of business (for the purpose of this paragraph, any Agreement with a value exceeding RMB 100,000 shall be deemed as a material Agreement);

  

	 	(7)	Without the prior written consent of Party A or Beijing Lahiji Science and Technology Development Company Limited, a wholly-controlled subsidiary of Party A in PRC, it shall not
provide any person with any loan or credit; 

  

 5 

	 	(8)	It shall provide the Party A with the information in connection with its finance or business as required; 

  

	 	(9)	It shall purchase and hold insurance policies from the insurance company accepted by Party A. The insured amount and category shall be equal or in the same level as those of the
companies with the similar business, assets and properties in the same district; 

  

	 	(10)	Without the prior written consent of Party A or Beijing Lahiji Science and Technology Development Company Limited, a wholly-controlled subsidiary of Party A in PRC, it shall not
acquire, invest in, merge or consolidate with any person; 

  

	 	(11)	It shall notify Party A immediately when any legal action, arbitration or administrative procedure relating to its assets, operations and incomes occurs or is likely to occur;

  

	 	(12)	For the purpose of maintaining property rights to all of its assets, it shall execute all necessary or proper documents, take all necessary or proper actions, bring forward all
necessary or proper claims, and conduct all necessary or proper defenses against any third party’s claim; 

  

	 	(13)	Without the prior written consent of Party A, it shall not distribute in any way any bonus or dividends to its shareholders, however, it shall immediately allot all distributable
profits to its shareholders on the request of Party A; and 

  

	 	(14)	At the request of Party A or Beijing Lahiji Science and Technology Development Company Limited, a wholly-controlled subsidiary of Party A in PRC, it shall appoint any persons
designated by Beijing Lahiji Science and Technology Development Company Limited as its directors. 

  

	2.2	Covenants and Undertakings of Party B 

 Party B hereby
undertakes that: 
  

	 	(1)	Without the prior written consent of Party A or Beijing Lahiji Science and Technology Development Company Limited, a wholly-controlled subsidiary of Party A in PRC, it shall not
sell, assign, transfer, pledge or dispose in any way any rights or benefits in connection with its equity or create any other security interest over the same after execution of this Agreement; 

  

 6 

	 	(2)	It shall procure that the shareholders meeting appointed by Party B, without the prior written consent of Party A or Beijing Lahiji Science and Technology Development Company
Limited, a wholly-controlled subsidiary of Party A in PRC, shall not approve any sale, assignment, transfer, pledge or disposal in any way of any legal rights or benefits in connection with its equity or any creation of any other security interest
over the same, except for the pledge on such equity provided in Party B’s Share Pledge Agreement; 

  

	 	(3)	It shall procure that, without the prior written consent of Party A or Beijing Lahiji Science and Technology Development Company Limited, an affiliated company of Party A in PRC,
the shareholders meeting appointed by Party B shall not approve the acquisition of, investment in, merger or consolidation with any person; 

  

	 	(4)	It shall notify Party A immediately when any legal action, arbitration or administrative procedure relating to its equity occurs or is likely to occur; 

  

	 	(5)	It shall procure the shareholders meeting appointed by Party B to approve the Option Shares transfer as set forth in this Agreement; 

  

	 	(6)	For the purpose of maintaining all rights to its equity, it shall execute all necessary or proper documents, take all necessary or proper actions, bring forward all necessary or
proper claims, and conduct all necessary or proper defenses against any third party’s claim; 

  

	 	(7)	At the request of Party A or Beijing Lahiji Science and Technology Development Company Limited, a wholly-controlled subsidiary of Party A in PRC, it shall appoint any persons
designated by Beijing Lahiji Science and Technology Development Company Limited as Party B’s directors. 

  

	 	(8)	If requested by Party A from time to time, it shall unconditionally and promptly transfer all its equity to the representative(s) designated by Party A at any time and waive the
right of first refusal in connection with the equity transfer conducted by the other shareholders of Party C; and 

  

 7 

	 	(9)	It shall strictly observe and perform the obligations and other provisions under this Agreement and any other agreements jointly entered into by Party A, Party B, Party C and
Beijing Lahiji Science and Technology Development Company Limited without conducting any action or non-action which will materially affect the validity and enforceability of the above mentioned agreement. 

  

	3.	Representations and Warranties 

 Representations and
Warranties of Party B and Party C 
 Party B and Party C hereby jointly and severally represent and warrant with Party A, as of the execution
date of this Agreement and each transfer date of the Option Shares, that: 
  

	 	(1)	They have the authority to execute and deliver this Agreement and any share transfer contracts to which they are the parties concerning the Option Shares to be transferred hereunder
(each a “Transfer Contract”), and to perform their obligations under this Agreement and any Transfer Contracts. The execution of this Agreement and the Transfer Contracts to which they are the parties shall constitute their legal, valid
and binding obligations and shall be enforceable against them in accordance with the provisions thereof; 

  

	 	(2)	The execution and delivery under this Agreement or any Transfer Contracts, or any obligations under this Agreement or any Transfer Contracts shall not: (i) violate any
applicable PRC laws; (ii) conflict with their respective articles of association, bylaws or other organizational documents; (iii) violate any contracts or instruments to which they are the parties or which are binding on them, or
constitute any breach under any contracts or instruments to which they are the parties or which are binding on them; (iv) violate any grants, licenses or permits issued to either of them and /or any existing and effective conditions; or
(v) impose additional conditions to, suspend or withdraw any approvals or permits issued to either of them; 

  

	 	(3)	Party B has a good and merchantable title to all of its assets without any encumbrance of security interest on the foregoing assets; 

  

	 	(4)	Party C does not have any outstanding debt, except for (i) the debt incurred in the ordinary course of business; or (ii) the debt already disclosed to Party A for which
Party A’s written consent has been obtained; 

  

 8 

	 	(5)	There are no pending or possible litigation, arbitration or administrative proceedings relating to the equity, or the assets of Party C, or the company. 

  

	4.	Effective Date 

 This Agreement shall take effect
upon the date of execution of this Agreement and remain effective for a term of 10 years, which may be renewed for an additional 10 years at Party A’s discretion. 
  

	5.	Applicable Laws and Dispute Resolution 

  

	5.1	Applicable laws 

 The execution, effectiveness,
construction and performance of this Agreement and the disputes resolution hereunder shall be governed by PRC laws. 
  

	5.2	Disputes resolution 

 In the event of any dispute with
respect to the construction and performance of the provisions of this Agreement, the Parties shall negotiate friendly to resolve such disputes. If the dispute can not be resolved within 30 days after any Party sends a written notice to request for
friendly resolution, any Party may submit the relevant dispute to the China International Economics and Trade Arbitration Commission for resolution by arbitration, in accordance with its then-effective arbitration rules. The arbitration shall be
performed in Beijing. The award shall be final and binding on both Parties. 
  

	6.	Taxes and fees 

 Each Party shall pay and bear any
transfer or registration taxes, expenses and fees incurred thereby or levied thereon in accordance with PRC laws in connection with the preparation and execution of this Agreement and the Transfer Contracts, and the fulfillment of the transactions
contemplated under this Agreement and the Transfer Contracts. 
  

 9 

	7.	Notices 

 The notices or other correspondences given
by any Party shall be written in Chinese, and shall be sent to the following addresses or other designated addresses notified from time to time by courier delivery, mail or facsimile. The date when such notice shall be deemed as being actually
served shall be determined as follows: (a) if a notice is sent by a courier, it shall be deemed actually served on the delivery date; (b) if a notice is sent by mail, on the tenth day (as indicated by the postmark) after the notice is sent
by a registered postage-prepaid air mail, or on the fourth day after the notice is given to an international-recognized express courier, it shall be deemed actually served; and (c) if a notice is sent by facsimile, the time of receipt shown on
the transmission confirming sheet of the documents shall be deemed as the time of actual service. 
  

			
	Party A:	  	LAHIJI VALE LIMITED
		
	Address:	  	P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands; (to be transferred by Offshore Incorporations Limited)
		
	Facsimile:	  	1-284-494-5132
		
	With copy to:	  	48F, The Center, 99 Queen’s Road Central, Hong Kong
		
	Addressee:	  	Company Secretary
		
	Facsimile:	  	852-2189-7446
		
	Party B:	  	Wang Leilei
		
	Address:	  	#1001, No. 1 Building, Xiao Yang Yi Bin Bystreet, Dongcheng District, Beijing, PRC
		
	Party C:	  	Beijing Lei Ting Wan Jun Network Technology Company Limited
		
	Address:	  	the 8th floor, No.3 West Office Building, Dong Fang Jing Mao
City, Dongfang Plaza, No. 1 of Dongchangan Street, Dongcheng District, Beijing
		
	Facsimile:	  	010–85181160

  

	8.	Confidentiality 

 The Parties acknowledge and
confirm that all the oral or written information in connection with this Agreement is the confidential information. Both Parties shall keep them confidential, and shall not disclose such confidential information to any third party without the prior
written consent of the other 
  

 10 

 party except that: (a) such information has been disclosed or is to be disclosed to the public (except being
disclosed to the public by the information recipient without the consent of the other party); (b) such information shall be disclosed to the public in accordance with the Hong Kong laws or the regulations or practices of the Hong Kong Stock
Exchanges; or (c) such information need to be disclosed to the legal counsel or the financial advisor who shall bear the confidential obligations hereof, however, if the this Article is violated by the employees or the engaged third persons, it
shall be deemed as violated by the Party who employs or engages such persons. The Parties agree that this article shall survive any termination of this Agreement. 
  

	9.	Further undertakings 

 The Parties agree to promptly
execute documents that are reasonably required or positive thereto for the purposes of the implement of this Agreement, and to take further actions that are reasonably required or positive thereto for the purposes of the implement of this Agreement.

  

	10.	Miscellaneous 

  

	10.1	Amendments, modification and supplements 

 It is required
to execute a written agreement by all Parties for any amendments, modifications and supplements to this Agreement shall. 
  

	10.2	Compliance with laws and regulations 

 Each of the Parties
shall ensure that the operations of each of the Parties are in compliance with all formally published and publicly available laws and regulations of China. 
  

	10.3	Entire Agreement 

 Except the written amendments,
supplements or modifications made after the execution of this Agreement, this Agreement, as a replacement of all previous oral or written negotiations, representations or contracts regarding the subject matter hereof, shall constitute the entire
agreement entered into by and among the Parties hereto with respect to the subject matter hereof. 
  

 11 

	10.4	Headings 

 The headings of this Agreement are for
convenience only and shall not be used to construct, illustrate or otherwise affect the meanings of the provisions hereof. 
  

	10.5	Languages 

 This Agreement is written in Chinese with 3
copies. 
  

	10.6	Severability 

 If any provision(s) of this Agreement is
held to be invalid, illegal or unenforceable subject to any law or regulations, then such provision shall not affect or derogate the validity, legality or enforceability of the remaining provisions. The Parties shall negotiate in good faith to
strive to replace the invalid, illegal or unenforceable provisions by valid substitute provisions, the effect of which shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions. 
  

	10.7	Successors 

 This Agreement shall be binding on and shall
inure to the interest of the respective successors of the Parties and the permitted assigns of such Parties. 
  

	10.8	Survival 

  

	 	(1)	Any obligations that occur or that are due upon the expiration or early termination of this Agreement shall survive the expiration or early termination thereof.

  

	 	(2)	The provisions of Articles 5 ,7 and 8 and this Clause 10.8 shall survive the termination of this Agreement. 

  

	10.9	Waivers 

 Each Party has the right to waive the terms and
conditions of this Agreement, and such waiver shall be conducted in writing with the execution of Parties. The waiver made by a Party in some certain circumstances due to other Party’s default shall not deem as a waiver made by such Party in
other circumstances due to any similar defaults. 
  

 12 

 IN WITNESS WHEREOF, the Parties have caused their respective duly authorized representatives to execute this Agreement as
of the date first above written. 
  

			
	Party A: LAHIJI VALE LIMITED
	
	Authorized representative:
		
	Signature: /s/	 	  

		
	Seal:	 	
	
	Party B: Wang Leilei
		
	Signature:	 	 /s/ Wang Leilei

	
	Party C: Beijing Lei Ting Wan Jun Network Technology Limited
	
	Legal representative:
		
	Signature: /s/	 	  

		
	Seal:	 	

  

 13Termination Agreement, dated January 19, 2005

 Exhibit 4.39 
 Termination Agreement 
 This Agreement is executed on 19 January 2005 by and
among: 
 Party A: LAHIJI VALE LIMITED (“Party A”) 
 Registered Address: Offshore Incorporations Limited, P.O. Box 957, Offshore Incorporations Center, Road Town, Tortola, British Virgin Islands 
 Party B: Wang Xiuling (“Party B”) 
 Address: #101, 7F, Unit 3, Wu Sheng Dong Lane, Chaoyang District, Beijing 
 Party C: Beijing Lei Ting Wan Jun Network Technology Limited (“Party C”) 
 Address: Room C610, No.18, Xi Huan Street (S), Beijing Economic-Technological Development Area, Beijing 
 Whereas: 
  

	1.	Party A, Party B, and Party C reached an Exclusive Option Agreement (hereinafter referred to as the “Exclusive Option Agreement”) on 30 November 2004.

  

	2.	Party A, Party B and Party C wish to terminate the said Exclusive Option Agreement. 

 Now therefore, the Parties agree as follows: 
  

	1.	Party A, Party B and Party C agree to terminate the Exclusive Option Agreement which shall automatically become invalid upon the effective date of this Agreement.

  

	2.	Upon the date when the Exclusive Option Agreement becomes invalid, the rights and obligations of Party A, Party B and Party C under the Exclusive Option Agreement shall be
terminated accordingly. 

  

 1 

	3.	This Agreement shall take effect upon its execution. 

  

	4.	This Agreement shall be governed by the PRC laws. 

  

	5.	This Agreement is made in two copies, each held by one Party. 

  

			
	Party A: LAHIJI VALE LIMITED
		
	Authorized Representative:	 	 /s/            

			
		
	Party B:	 	Wang Xiuling
	Signature:	 	 /s/ Wang Xiuling

			
	
	Party C: Beijing Lei Ting Wan Jun Network Technology Limited
		
	Authorized Representative:	 	 /s/            

  

 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]