Document:

Exhibit 10.26

 

	
DATED
    	
April 20, 2018
    

 

	
 
    	
 
    	
 
    
	
 
    	
EXCLUSIVE   OPTION AGREEMENT
    	
 
    
	
 
    	
 
    	
 
    

 

 

Exclusive Option Agreement

 

This Exclusive Option Agreement (this “Agreement”) is executed by and among the following Parties as of the 20th day of April, 2018 in Shenzhen, People’s Republic of China (“PRC” or “China”):

 

	
Party A:
    	
 
    	
Shenzhen Samoyed Information Technology Co., Ltd, a   limited liability company organized and existing under the laws of PRC, with   its address at Building A, No. 1, Qian Wan Yi Road, Qianhai Harbour   Co-operation Zone, Shenzhen, PRC;
    
	
 
    	
 
    	
 
    
	
Party B:
    	
 
    	
Natural person as listed in the Schedule I hereto ;   and
    
	
 
    	
 
    	
 
    
	
Party C:
    	
 
    	
Shenzhen Wuyu Technologies Services Co., Ltd, a   limited liability company organized and existing under the laws of PRC, with   its address at Room 3206, Building 1B, Huasheng Shenghui, Shang Chuan Road,   Xin An Street, Bao An District, Shenzhen, PRC.
    

 

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

 

Whereas:

 

1.                                      Party B hold 100% of the equity interests in Party C;

 

2.                                      To the extent not prohibited by PRC laws, each Party B wish to transfer the equity interest of Party C held by him to Party A or Designee (as defined in Section 1.1), and Party A wishes to accept such transfer.

 

3.                                      In order to realize such transfer, each Party B irrevocably agrees to grant an Equity Interest Purchase Option (as defined in Section 1.1) to purchase all or part of the equity interest of Party C held by such Party B, upon request of Party A and to the extent permitted by the PRC laws, each Party agrees to transfer such equity interest to Party A or Designee in accordance with this Agreement.

 

Now therefore, upon mutual discussion and negotiation, the Parties have reached the following agreement:

 

1.                                      SALE AND PURCHASE OF EQUITY INTEREST

 

1.1                               Option Granted

 

Each Party B hereby irrevocably grants Party A an irrevocable and exclusive right to purchase, or designate one or more persons (each, a “Designee”) to purchase the equity interests in Party C then held by such Party B once or at multiple times at any time in part or in whole at Party A’s sole and absolute discretion to the extent permitted by PRC laws and at the price described in Section 1.3 herein (such right being the “Equity Interest Purchase Option”). As of the date hereof, the equity interest of Party C held by each Party B are listed in the Schedule I. Except for Party A and the Designee(s), no other person shall be entitled to the Equity Interest Purchase Option or other rights with respect to the equity interests of Party B.  Party C hereby agrees to the grant by Party B of the Equity Interest Purchase Option to Party A.  The term “person” as used herein shall refer to individuals, corporations, partnerships, partners, enterprises, trusts or non-corporate organizations.

 

Strictly Confidential

 

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1.2                               Steps for Exercise of Equity Interest Purchase Option

 

Subject to the provisions of the laws and regulations of the PRC, Party A may exercise the Equity Interest Purchase Option by issuing a written notice to Party B (“Equity Interest Purchase Option Notice”), specifying: (a) Party A’s decision to exercise the Equity Interest Purchase Option, and the name of the Designee(s) if any; (b) the portion of equity interests to be purchased from Party B (“Optioned Interests”); and (c) the date for purchasing the Optioned Interests and/or the date for transfer of the Optioned Interests.

 

1.3                               Equity Interest Purchase Price

 

Unless an appraisal is required by PRC law applicable to the Equity Interest Purchase Option when exercised by Party A, the purchase price of the Optioned Interests (“Equity Interest Purchase Price”) shall equal to the minimum price permitted by applicable law. If any Equity Interest Purchase Price is actually paid, Party B shall reimburse the same amount to Party A.

 

1.4                               Transfer of Optioned Interests

 

For each exercise of the Equity Interest Purchase Option:

 

1.4.1                     Each Party B shall cause Party C to promptly convene a shareholders’ meeting, at which a resolution shall be adopted approving Party B’s transfer of the Optioned Interests to Party A and/or the Designee(s);

 

1.4.2                     Each Party B shall execute a share transfer contract with respect to each transfer with Party A and/or each Designee (whichever is applicable), in accordance with the provisions of this Agreement and the Equity Interest Purchase Option Notice regarding the Optioned Interests;

 

1.4.3                     The relevant Parties shall execute all other necessary contracts, agreements or documents, obtain all necessary government licenses and permits and take all necessary actions to transfer valid ownership of the Optioned Interests to Party A and/or the Designee(s), unencumbered by any security interests, and cause Party A and/or the Designee(s) to become the registered owner(s) of the Optioned Interests. For the purpose of this Section and this Agreement, “security interests” shall include securities, mortgages, third party’s rights or interests, any stock options, acquisition right, right of first refusal, right to offset, ownership retention or other security arrangements, but shall be deemed to exclude any security interest created by this Agreement and Party B’s Share Pledge Agreement. “Share Pledge Agreement” as used in this Section and this Agreement shall refer to the Share Pledge Agreement executed by and among Party B, Party C and Party A as of the date hereof, whereby each Party B pledges all of his equity interests in Party C to Party A, in order to guarantee Party C’s performance of its obligations under the Exclusive Business Corporation Agreement executed by and between Party C and Party A.

 

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2.                                      COVENANTS

 

2.1                               Covenants regarding Party C

 

Each Party B (as a shareholder of Party C) and Party C hereby covenant as follows:

 

2.1.1                     Unless for the purpose of performing the transactions set forth under the Restructuring Agreement, without the prior written consent of Party A, they shall not in any manner supplement, change or amend the articles of association and bylaws of Party C, increase or decrease its registered capital, or change its structure of registered capital in other manners;

 

2.1.2                     They shall maintain Party C’s corporate existence in accordance with good financial and business standards and practices by prudently and effectively operating its business and handling its affairs;

 

2.1.3                     Without the prior written consent of Party A, they shall not at any time following the date hereof, sell, transfer, mortgage or dispose of in any manner any assets of Party C or legal or beneficial interest in the business or revenues of Party C, or allow the encumbrance thereon of any security interest;

 

2.1.4                     Without the prior written consent of Party A, they shall not incur, inherit, guarantee or suffer the existence of any debt, except for (i) debts incurred in the ordinary course of business; and (ii) debts disclosed to Party A for which Party A’s written consent has been obtained;

 

2.1.5                     They shall always operate all of Party C’s businesses during the ordinary course of business to maintain the asset value of Party C and refrain from any action/omission that may affect Party C’s operating status and asset value;

 

2.1.6                     Without the prior written consent of Party A, they shall not cause Party C to execute any major contract , except the contracts in the ordinary course of business (for purpose of this subsection, a contract with a value exceeding RMB 10,000,000 shall be deemed a major contract);

 

2.1.7                     Without the prior written consent of Party A, they shall not cause Party C to provide any person with any loan or credit except for (i) those in the ordinary course of business; and (ii) disclosed to Party A for which Party A’s written consent has been obtained;

 

2.1.8                     They shall provide Party A with information on Party C’s business operations and financial condition at Party A’s request;

 

2.1.9                     If requested by Party A, they shall procure and maintain insurance in respect of Party C’s assets and business from an insurance carrier acceptable to Party A, at an amount and type of coverage typical for companies that operate similar businesses;

 

2.1.10              Without the prior written consent of Party A, they shall not cause or permit Party C to merge, consolidate with, acquire or invest in any person;

 

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2.1.11              They shall immediately notify Party A of the occurrence or possible occurrence of any litigation, arbitration or administrative proceedings relating to Party C’s assets, business or revenue;

 

2.1.12              To maintain the ownership by Party C of all of its assets, they shall execute all necessary or appropriate documents, take all necessary or appropriate actions and file all necessary or appropriate complaints or raise necessary and appropriate defenses against all claims;

 

2.1.13              Without the prior written consent of Party A, they shall ensure that Party C shall not in any manner distribute dividends to its shareholders, provided that upon Party A’s written request, Party C shall immediately distribute all distributable profits to its shareholders; and

 

2.1.14              At the request of Party A, they shall appoint any persons designated by Party A as directors of Party C.

 

2.2                               Covenants of Party Band Party C

 

Each Party B and Party C hereby covenants as follows:

 

2.2.1                     without the prior written consent of Party A, he shall not sell, transfer, mortgage or dispose of in any other manner any legal or beneficial interest in the equity interests in Party C held by him, or allow the encumbrance thereon of any security interest, except for the pledge placed on these equity interests in accordance with Share Pledge Agreement and the purpose of performing the transactions set forth under the Restructuring Agreement;

 

2.2.2                     he shall cause the shareholders’ meeting and/or the board of directors of Party C not to approve the sale, transfer, mortgage or disposition in any other manner of any legal or beneficial interest in the equity interests in Party C held by him, or allow the encumbrance thereon of any security interest, without the prior written consent of Party A, except for the pledge placed on these equity interests in accordance with Party B’s Share Pledge Agreement and the purpose of performing the transactions set forth under the Restructuring Agreement;

 

2.2.3                     he shall cause the shareholders’ meeting or the board of directors of Party C not to approve the merger or consolidation with any person, or the acquisition of or investment in any person, without the prior written consent of Party A;

 

2.2.4                     he shall immediately notify Party A of the occurrence or possible occurrence of any litigation, arbitration or administrative proceedings relating to the equity interests in Party C held by him;

 

2.2.5                     he shall cause the shareholders’ meeting or the board of directors of Party C to vote their approval of the transfer of the Optioned Interests as set forth in this Agreement and to take any and all other actions that may be requested by Party A;

 

2.2.6                     To the extent necessary to maintain his ownership in Party C, he shall execute all necessary or appropriate documents, take all necessary or appropriate actions and file all necessary or appropriate complaints or raise necessary and appropriate defenses against all claims;

 

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2.2.7                     he shall appoint any designee of Party A as director and senior management of Party C, at the request of Party A;

 

2.2.8                     at the request of Party A at any time, he shall promptly and unconditionally transfer his equity interests in Party C to Party A and/or Party A’s Designee(s) in accordance with the Equity Interest Purchase Option under this Agreement, and he hereby waives his right of first refusal to the share transfer by the other existing shareholders of Party C (if any); and

 

2.2.9                     he shall strictly abide by the provisions of this Agreement and other contracts jointly or separately executed by and among Party B, Party C and Party A, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability thereof. To the extent that he has any remaining rights with respect to the equity interests subject to this Agreement hereunder or under the Share Pledge Agreement among the same parties hereto or under the Power of Attorney granted in favor of Party A, he shall not exercise such rights except in accordance with the written instructions of Party A.

 

3.                                      REPRESENTATIONS AND WARRANTIES

 

Each Party B and Party C hereby represent and warrant to Party A, severally but not jointly, as of the date of this Agreement and each date of transfer of the Optioned Interests, that:

 

3.1                               It/he has the authority to execute and deliver this Agreement and any share transfer contracts to which they are a party concerning the Optioned Interests to be transferred thereunder (each, a “Transfer Contract”), and to perform their obligations under this Agreement and any Transfer Contracts. Party B and Party C agree to enter into Transfer Contracts consistent with the terms of this Agreement upon Party A’s exercise of the Equity Interest Purchase Option. This Agreement and the Transfer Contracts to which they are a party constitute or will constitute their legal, valid and binding obligations and shall be enforceable against them in accordance with the provisions thereof;

 

3.2                               The execution and delivery of this Agreement or any Transfer Contracts and the obligations under this Agreement or any Transfer Contracts shall not: (i) cause any violation of any applicable laws of the PRC; (ii) be inconsistent with the articles of association, bylaws or other organizational documents of Party C; (iii) cause the violation of any contracts or instruments to which they are a party or which are binding on them, or constitute any breach under any contracts or instruments to which they are a party or which are binding on them; (iv) cause any violation of any condition for the grant and/or continued effectiveness of any licenses or permits issued to either of them; or (v) cause the suspension or revocation of or imposition of additional conditions to any licenses or permits issued to either of them;

 

3.3                               Each Party B has a good and merchantable title to the equity interests in Party C he holds. Except for Share Pledge Agreement, Party B has not placed any security interest on such equity interests;

 

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3.4                               Party C has a good and merchantable title to all of its assets, and has not placed any security interest on the aforementioned assets;

 

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

 

3.6                               Party C has complied with all laws and regulations of the PRC applicable to asset acquisitions; and

 

3.7                               There are no pending or threatened litigation, arbitration or administrative proceedings relating to the equity interests in Party C, assets of Party C or Party C.

 

4.                                      EFFECTIVE DATE

 

This Agreement shall become effective upon the date hereof, and remain effective for a term of 10 years, and may be renewed at Party A’s election.

 

5.                                      GOVERNING LAW AND RESOLUTION OF DISPUTES

 

5.1                               Governing law

 

The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the formally published and publicly available laws of the PRC. Matters not covered by formally published and publicly available laws of the PRC shall be governed by international legal principles and practices.

 

5.2                               Methods of Resolution of Disputes

 

In the event of any dispute with respect to the construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement on the dispute within 30 days after either Party’s request to the other Parties for resolution of the dispute through negotiations, either Party may submit the relevant dispute to the Shenzhen Court of International Arbitration (“SCIA”) for arbitration, in accordance with its then effective arbitration rules.  The arbitration shall be conducted in Shenzhen, and the language used in arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties.

 

6.                                      TAXES AND FEES

 

Each Party shall pay any and all transfer and registration tax, expenses and fees incurred thereby or levied thereon in accordance with PRC law in connection with the preparation and execution of this Agreement and the Transfer Contracts, as well as the consummation of the transactions contemplated under this Agreement and the Transfer Contracts.

 

7.                                      Notices

 

7.1                               All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such Party set forth below.  A confirmation copy of each notice shall also be sent by email.  The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

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7.1.1                     Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively given on the date of delivery or refusal at the address specified for notices.

 

7.1.2                     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).

 

7.2                               For the purpose of notices, the addresses of the Parties are as follows:

 

	
Party A:
    	
 
    	
Shenzhen Samoyed Information Technology Co., Ltd
    
	
Address:
    	
 
    	
B4-902, Kexing Science Park, 15 Keyuan Road, Nanshan   District, Shenzhen, PRC
    
	
Attn:
    	
 
    	
Wang Xiaojun
    
	
Phone:
    	
 
    	
XXXXXX
    
	
 
    	
 
    	
 
    
	
Party B
    	
 
    	
as listed in Schedule II
    
	
 
    	
 
    	
 
    
	
Party C:
    	
 
    	
Shenzhen Wuyu Technologies Services Co., Ltd
    
	
Address:
    	
 
    	
B4-903, Kexing Science Park, 15 Keyuan Road, Nanshan   District, Shenzhen, PRC
    
	
Attn:
    	
 
    	
LIN Xi
    
	
Phone:
    	
 
    	
XXXXXX
    

 

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

 

8.                                      CONFIDENTIALITY

 

The Parties acknowledge that the existence and the terms of this Agreement, and any oral or written information exchanged between the Parties in connection with the preparation and performance of this Agreement are regarded as confidential information. Each Party shall maintain the confidentiality of all such information, and without obtaining the written consent of other Parties, it/he shall not disclose any relevant information to any third parties, except in the following circumstances: (a) such information is or will be in the public domain (provided that this is not the result of a public disclosure by the receiving Party); (b) information disclosed as required by applicable laws or rules or regulations of any stock exchange or orders of the court or other government authorities; or (c) information required to be disclosed by any Party to its/his legal counsel or financial advisor or affiliate regarding the transaction contemplated hereunder, and such legal counsel or financial advisor or affiliate are also bound by confidentiality duties similar to the duties in this Section. Disclosure of any confidential information by the staff members or agency hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Agreement. This Section shall survive the termination of this Agreement for any reason.

 

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9.                                      FURTHER WARRANTIES

 

The Parties agree to promptly execute documents that are reasonably required for or are conducive to the implementation of the provisions and purposes of this Agreement and take further actions that are reasonably required for or are conducive to the implementation of the provisions and purposes of this Agreement.

 

10.                               MISCELLANEOUS

 

10.1                        Amendment, change and supplement

 

Any amendment, change and supplement to this Agreement shall require the execution of a written agreement by all of the Parties.

 

10.2                        Entire agreement

 

Except for the amendments, supplements or changes in writing executed after the execution of this Agreement, this Agreement shall constitute the entire agreement reached by and among the Parties hereto with respect to the subject matter hereof, and shall supercede all prior oral and written consultations, representations and contracts reached with respect to the subject matter of this Agreement.

 

10.3                        Headings

 

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

 

10.4                        Language

 

This Agreement is written in both Chinese and English language in four copies, each Party having one copy with equal legal validity; in case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.

 

10.5                        Severability

 

In the event that one or several of the provisions of this Agreement are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or compromised in any respect.  The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

10.6                        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.

 

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10.7                        Survival

 

10.7.1              Any obligations that occur or that are due as a result of this Agreement upon the expiration or early termination of this Agreement shall survive the expiration or early termination thereof.

 

10.7.2              The provisions of Sections 5, 7, 8 and this Section 10.7 shall survive the termination of this Agreement.

 

10.8                        Waivers

 

Any Party may waive the terms and conditions of this Agreement, provided that such a waiver must be provided in writing and shall require the signatures of the Parties. No waiver by any Party in certain circumstances with respect to a breach by other Parties shall operate as a waiver by such a Party with respect to any similar breach in other circumstances.

 

[The remainder of this page is intentionally left blank.]

 

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IN WITNESS WHEREOF, the Parties or their authorized representatives have executed this Exclusive Option Agreement as of the date first above written.

 

Party A:      Shenzhen Samoyed Information Technology Co., Ltd  (Seal)

 

	
By: 
    	
/s/LIN Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Name: 
    	
LIN Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Title: 
    	
Legal   Representative/Authorized Signatory
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
April 20, 2018
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties or their authorized representatives have executed this Exclusive Option Agreement as of the date first above written.

 

Party B:      LIN Jianming

 

	
By: 
    	
/s/LIN Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Date: 
    	
April 20, 2018
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties or their authorized representatives have executed this Exclusive Option Agreement as of the date first above written.

 

Party B:      TANG Debin

 

	
By: 
    	
/s/TANG Debin
    	
 
    
	
 
    	
 
    	
 
    
	
Date: 
    	
April 20, 2018
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties or their authorized representatives have executed this Exclusive Option Agreement as of the date first above written.

 

Party C:      Shenzhen Wuyu Technologies Services Co., Ltd (Seal)

 

	
By: 
    	
/s/LIN Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Name: 
    	
LIN Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Title: 
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    
	
Date: 
    	
April 20, 2018
    	
 
    

 

 

Schedule I Information of Party B

 

	
#
    	
 
    	
Name of Shareholders
    	
 
    	
Capital Contribution
   (10,000RMB)
    	
 
    	
Ratio
    	
 
    
	
1.
    	
 
    	
LIN Jianming
    	
 
    	
1,000
    	
 
    	
50
    	
%
    
	
2.
    	
 
    	
TANG Debin
    	
 
    	
1,000
    	
 
    	
50
    	
%
    
	
 
    	
 
    	
Total
    	
 
    	
2,000
    	
 
    	
100
    	
%
    

 

 

Schedule II Contact Information of Party BExhibit 10.27

 

	
DATED
    	
September 17, 2018
    

 

 

SHARE PLEDGE AGREEMENT

 

 

 

Share Pledge Agreement

 

This Share Pledge Agreement (this “Agreement”) has been executed by and among the following Parties on the 17th day of September, 2018 in Shenzhen, People’s Republic of China (“PRC” or “China”):

 

	
Party A:
    	
Shenzhen Samoyed Information Technology   Co., Ltd., a limited liability company organized and existing under the   laws of PRC, with its address at Building A, No. 1, Qian Wan Yi Road,   Qianhai Harbour Co-operation Zone, Shenzhen, PRC (hereinafter “Pledgee”);
    
	
 
    	
 
    
	
Party B:
    	
Shenzhen Wuyu Technologies Services Co., Ltd.,   a limited liability company organized and existing under the laws of PRC,   with its address at A5156, Building 5 of Huayang Meinian Plaza, Pengji Times   Pioneer Park, West Nanhai Avenue, Shekou Street, Nanshan District, Shenzhen,   PRC(hereinafter “Pledgor”);   and
    
	
 
    	
 
    
	
Party C:
    	
Shenzhen Samoyed Internet Finance Service   Co., Ltd., a limited liability company organized and existing under the   laws of PRC, with its address at 29-G2, Building 2, China Phoenix Mansion,   2008 Shen Nan Avenue, Fu Zhong Community, Lian Hua Jie Dao, Fu Tian District,   Shenzhen, PRC.
    

 

In this Agreement, each of Pledgee, Pledgor and Party C shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas:

 

1.                                      Pledgor is an entity organized and existing under the laws of PRC. As of the date hereof, it holds or will hold 1.0549% of the equity interest in Party C;

 

2.                                      Party C is a limited liability company registered in Shenzhen, China, engaging in credit card refinancing business. Party C acknowledges the respective rights and obligations of Pledgor and Pledgee under this Agreement, and agrees to provide any necessary assistance in registering the Pledge;

 

3.                                      Pledgee is a Wholly Foreign Owned Enterprise registered in Shenzhen, China. Pledgee and Party C have executed an Exclusive Business Cooperation Agreement on April 20, 2018 (“Business Cooperation Agreement”);

 

4.                                      To ensure that Pledgee collects all payments due by Party C, including without limitation the consulting and service fees regularly from Party C, all the shareholders of Party C pledge all of the equity interest they hold in Party C as security for Party C’s payment of the consulting and service fees under the Business Cooperation Agreement;

 

5.                                      In order to perform the aforementioned security, Pledgee signed a Share Pledge Agreement with Party C, ZHOU Yang and all the other shareholders of Party C at that time on April 20, 2018 (“Original Agreement”), and agreed that Original Agreement “shall be binding on Pledgor and its successors and permitted assigns, and shall be valid with respect to Pledgee and each of its successors and assigns”. ZHOU Yang is one of the pledgors under Original Agreement;

 

6.                                      On 17 September, 2018, ZHOU Yang signed an Equity Transfer Agreement with Pledgor, agreeing to sell the registered capital of RMB 1,499,880 of Party C held by him (accounting  for 1.0549% of equity interests in Party C) to Pledgor (“Equity Transfer”). As for the shareholder’s rights and obligations of the above-mentioned 1.0549% equity interests, all of them are inherited by Pledgor, and other rights attached to the above-mentioned 1.0549% equity interests are transferred with the equity transfer. After the closing of the equity transfer, Pledgor shall enter into a share pledge agreement with Party A on the equity he holds in Party C;

 

Strictly Confidential

 

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7.                                      Based on the above-mentioned agreements in Original Agreement and in the Equity Transfer Agreement, Pledgor, Pledgee and Party C enter into this Agreement.

 

To perform the provisions of the Business Cooperation Agreement, the Parties have mutually agreed to execute this Agreement upon the following terms.

 

1.                                      DEFINITIONS

 

Unless otherwise provided herein, the terms below shall have the following meanings:

 

1.1                               “Pledge” shall refer to the security interest granted by Pledgor to Pledgee pursuant to Section 2 of this Agreement, i.e., the right of Pledgee to be compensated on a preferential basis with the conversion, auction or sales price of the Equity Interest.

 

1.2                               “Equity Interest” shall refer to all of the equity interest lawfully now held and hereafter acquired by Pledgor in Party C.

 

1.3                               “Term of Pledge” shall refer to the term set forth in Section 3 of this Agreement.

 

1.4                               “Business Cooperation Agreement” shall refer to the Exclusive Business Cooperation Agreement executed by and between Pledgee and Party C owned by Pledgor on April 20, 2018, its supplementary agreement entered from time to time, and any other agreement entered in accordance to its provision.

 

1.5                               “Event of Default” shall refer to any of the circumstances set forth in Section 7 of this Agreement.

 

1.6                               “Notice of Default” shall refer to the notice issued by Pledgee in accordance with this Agreement declaring an Event of Default.

 

2.                                      THE PLEDGE

 

As collateral security for the prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of any or all the payments due by Party C, including without limitation the consulting and services fees payable to Pledgee under the Business Cooperation Agreement (the Parties may entered into written confirmation to confirm the amount due at the time of signing such written confirmation if and when necessary),  Pledgor hereby pledges to Pledgee a first security interest in all of Pledgor’s right, title and interest, whether now owned or hereafter acquired by Pledgor, in the Equity Interest of Party C.

 

As of the date hereof, Pledgor’s pledged share under this Agreement is 1.0549% of the equity interest in Party C held by it after the completion of Equity Transfer, and the corresponding amount is RMB 1,499,880.

 

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3.                                      TERM OF PLEDGE

 

3.1                               The Pledge shall become effective as of the date when the pledge of the Equity Interest is registered with the competent administration of industry and commerce with proper jurisdiction over Party C. The Pledge shall be continuously valid until all payments due under the Business Cooperation Agreement have been fulfilled by Party C. The Parties agree that Party C shall register the Pledge in the shareholders’ register of Party C as of the date of this Agreement.

 

3.2                               During the Term of the Pledge, in the event Party C fails to pay the exclusive consulting or service fees in accordance with the Business Cooperation Agreement, Pledgee shall have the right, but not the obligation, to dispose of the Pledge in accordance with the provisions of this Agreement.

 

4.                                      CUSTODY OF RECORDS FOR EQUITY INTEREST SUBJECT TO PLEDGE

 

4.1                               During the Term of Pledge set forth in this Agreement, Pledgor and Party C shall deliver to Pledgee’s custody the capital contribution certificate for the Equity Interest and the shareholders’ register containing the Pledge within one week from the execution of this Agreement. Pledgee shall have custody of such items during the entire Term of Pledge set forth in this Agreement.

 

4.2                               Pledgee shall have the right to collect dividends generated by the Equity Interest during the Term of Pledge.

 

5.                                      REPRESENTATIONS AND WARRANTIES OF PLEDGOR

 

5.1                               Pledgor is the sole legal and beneficial owner of the Equity Interest held by it.

 

5.2                               Pledgee shall have the right to dispose of and transfer the Equity Interest in accordance with the provisions set forth in this Agreement.

 

5.3                               Except for the Pledge, Pledgor has not placed any security interest or other encumbrance on the Equity Interest.

 

6.                                      COVENANTS AND FURTHER AGREEMENTS OF PLEDGOR

 

6.1                               Pledgor hereby covenants to Pledgee, that during the term of this Agreement, Pledgor shall:

 

6.1.1                     not transfer the Equity Interest, place or permit the existence of any security interest or other encumbrance that may affect the Pledgee’s rights and interests in the Equity Interest, without the prior written consent of Pledgee, except for the performance of the Restructuring Agreement executed by Party C and relevant parties thereto on February 12, 2018, and the Exclusive Option Agreement executed by Pledgor, Pledgee and Party C on September 17, 2018;

 

6.1.2                     comply with the provisions of all laws and regulations applicable to the pledge of rights, and within 5 days of receipt of any notice, order or recommendation issued or prepared by relevant competent authorities regarding the Pledge, shall present the aforementioned notice, order or recommendation to Pledgee, and shall comply with the aforementioned notice, order or recommendation or submit objections and representations with respect to the aforementioned matters upon Pledgee’s reasonable request or upon consent of Pledgee;

 

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6.1.3                     promptly notify Pledgee of any event or notice received by Pledgor that may have an impact on Pledgee’s rights to the Equity Interest held by Pledgor or any portion thereof, as well as any event or notice received by Pledgor that may have an impact on any guarantees and other obligations of Pledgor arising out of this Agreement.

 

6.2                               Pledgor agrees that the rights acquired by Pledgee in accordance with this Agreement with respect to the Pledge shall not be interrupted or harmed by Pledgor or any heirs or representatives of Pledgor or any other persons through any legal proceedings.

 

6.3                               To protect or perfect the security interest granted by this Agreement for payment of the consulting and service fees under the Business Cooperation Agreement, Pledgor hereby undertakes to execute in good faith and to cause other parties who have an interest in the Pledge to execute all certificates, agreements, deeds and/or covenants required by Pledgee. Pledgor also undertakes to perform and to cause other parties who have an interest in the Pledge to perform actions required by Pledgee, to facilitate the exercise by Pledgee of its rights and authority granted thereto by this Agreement, and to enter into all relevant documents regarding ownership of Equity Interest with Pledgee or designee(s) of Pledgee (natural/legal persons).  Pledgor undertakes to provide Pledgee within a reasonable time with all notices, orders and decisions regarding the Pledge that are required by Pledgee.

 

6.4                               Pledgor hereby undertakes to comply with and perform all guarantees, promises, agreements, representations and conditions under this Agreement. In the event of failure or partial performance of its guarantees, promises, agreements, representations and conditions, Pledgor shall indemnify Pledgee for all losses resulting therefrom.

 

7.                                      EVENT OF BREACH

 

7.1                               The following circumstances shall be deemed Event of Default:

 

7.1.1                     Party C fails to pay in full any of the consulting and service fees payable under the Business Cooperation Agreement or causes any loss to Pledgee due to breaches any other obligations of Party C thereunder;

 

7.1.2                     Any representation or warranty by Pledgor in Section 5 of this Agreement contains material misrepresentations or errors, and/or Pledgor violates any of the warranties in Section 5 of this Agreement;

 

7.1.3                     Party C fail to register the Pledge in the shareholders’ register of Party C stipulated in Section 3.1;

 

7.1.4                     Pledgor and Party C breach any provisions of this Agreement;

 

7.1.5                     Except as expressly stipulated in Section 6.1.1, Pledgor transfers or purports to transfer or abandons the Equity Interest pledged or assigns the Equity Interest pledged without the written consent of Pledgee;

 

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7.1.6                     Any approval, license, permit or authorization of government agencies that makes this Agreement enforceable, legal and effective is withdrawn, terminated, invalidated or substantively changed;

 

7.1.7                     The promulgation of applicable laws renders this Agreement illegal or renders it impossible for Pledgor to continue to perform its obligations under this Agreement;

 

7.1.8                     Adverse changes in the Equity Interest pledged by Pledgor, which lead Pledgee to reasonably believe that Pledgor’s ability to perform its obligations under this Agreement has been affected;

 

7.1.9                     The successor or custodian of Party C is capable of only partially performing or refuses to perform the payment obligations under the Business Cooperation Agreement; and

 

7.1.10              Any other circumstances occur where Pledgee is or may become unable to exercise its right with respect to the Pledge.

 

7.2                               Upon notice or discovery of the occurrence of any circumstances or event that may lead to the aforementioned circumstances described in Section 7.1, Pledgor shall immediately notify Pledgee in writing accordingly.

 

7.3                               Unless an Event of Default set forth in this Section 7.1 has been successfully resolved to Pledgee’s satisfaction, Pledgee may issue a Notice of Default to the defaulting Pledgor in writing upon the occurrence of the Event of Default or at any time thereafter and demand to dispose of the Pledge in accordance with the provisions of Section 8 of this Agreement.

 

8.                                      EXERCISE OF PLEDGE

 

8.1                               Prior to the full payment of the consulting and service fees described in the Business Cooperation Agreement, except as expressly stipulated in Section 6.1.1, without the Pledgee’s written consent, Pledgor shall not assign the Pledge or the Equity Interest held by it in Party C.

 

8.2                               Pledgee shall issue a written Notice of Default to the defaulting Pledgor when exercising the Pledge.

 

8.3                               Subject to the provisions of Section 7.3, Pledgee may exercise the right to enforce the Pledge concurrently with the issuance of the Notice of Default in accordance with Section 8.2 or at any time after the issuance of the Notice of Default. Once Pledgee elects to enforce the Pledge, Pledgor shall cease to be entitled to any rights or interests associated with the Equity Interest.

 

8.4                               In the Event of Default, Pledgee is entitled to take possession of the Equity Interest pledged hereunder and to dispose of the Equity Interest pledged, to the extent permitted and in accordance with applicable laws, without obligation to account to Pledgor for proceeds of disposition and Pledgor hereby waives any rights it may have to demand any such accounting from Pledgee. Likewise, in such circumstance Pledgor shall not have obligation to Pledgee for any deficiency remaining after such disposition of the Equity Interest pledged.

 

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8.5                               When Pledgee disposes of the Pledge in accordance with this Agreement, Pledgor and Party C shall provide necessary assistance to enable Pledgee to enforce the Pledge in accordance with this Agreement.

 

9.                                      ASSIGNMENT

 

9.1                               Without Pledgee’s prior written consent, Pledgor shall not have the right to assign or delegate its rights and obligations under this Agreement.

 

9.2                               This Agreement shall be binding on Pledgor and its successors and permitted assigns, and shall be valid with respect to Pledgee and each of its successors and assigns.

 

9.3                               At any time, Pledgee may assign any and all of its rights and obligations under the Business Cooperation Agreement to its designee(s) (natural/legal persons), in which case the assigns shall have the rights and obligations of Pledgee under this Agreement, as if it were the original party to this Agreement. When Pledgee assigns the rights and obligations under the Business Cooperation Agreement, upon Pledgee’s request, Pledgor shall execute relevant agreements or other documents relating to such assignment.

 

9.4                               In the event of a change in Pledgee due to an assignment, Pledgor shall, at the request of Pledgee, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement and register the same with the relevant AIC.

 

9.5                               Pledgor shall strictly abide by the provisions of this Agreement and other contracts jointly or separately executed by the Parties hereto or any of them, including but without limitation, the Exclusive Option Agreement and the Power of Attorney granted to Pledgee, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability thereof. Any remaining rights of Pledgor with respect to the Equity Interest pledged hereunder shall not be exercised by Pledgor except in accordance with the written instructions of Pledgee.

 

10.                               TERMINATION

 

Upon the full payment of the consulting and service fees under the Business Cooperation Agreement and upon termination of Party C’s obligations under the Business Cooperation Agreement, this Agreement shall be terminated, and Pledgee shall then cancel or terminate this Agreement as soon as reasonably practicable.

 

11.                               HANDLING FEES AND OTHER EXPENSES

 

All fees and out of pocket expenses relating to this Agreement, including but not limited to legal costs, costs of production, stamp tax and any other taxes and fees, shall be borne by Party C. If applicable laws require that Pledgee should bear some related taxes and fees, Pledgor shall cause Party C to fully repay Pledgee the paid taxes and fees.

 

12.                               CONFIDENTIALITY

 

The Parties acknowledge that the existence and the terms of this Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance of this Agreement are regarded as confidential information. Each Party shall maintain the confidentiality of all such information, and without obtaining the written consent of other Parties, it/he shall not disclose any relevant information to any third parties, except in the following circumstances: (a) such information is  or will be in the public domain (provided that this is not the result of a public disclosure by the receiving party); (b) information disclosed as required by applicable laws or rules or regulations of any stock exchange or orders of the court or other government authorities;; or (c) information required to be disclosed by any Party to its/his legal counsel or financial advisor or affiliate regarding the transaction contemplated hereunder, and such legal counsel or financial advisor or affiliate are also bound by confidentiality duties similar to the duties in this section. Disclosure of any confidential information by the staff members or agency hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Agreement. This section shall survive the termination of this Agreement for any reason.

 

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13.                               GOVERNING LAW AND RESOLUTION OF DISPUTES

 

13.1                        The execution, effectiveness, construction, performance, and the resolution of disputes hereunder shall be governed by the formally published and publicly available PRC laws. Matters not covered by formally published and publicly available laws of China shall be governed by international legal principles and practices.

 

13.2                        In the event of any dispute with respect to the construction and performance of the provisions of this Agreement, the Parties shall negotiate in good faith to resolve the dispute. In the event the Parties fail to reach an agreement on the resolution of such a dispute within 30 days after any Party’s request for resolution of the dispute through negotiations, any Party may submit the relevant dispute to the Shenzhen Court of International Arbitration (“SCIA”) for arbitration, in accordance with its then effective arbitration rules. The arbitration shall be conducted in Shenzhen, and the language used during arbitration shall be Chinese. The arbitration ruling shall be final and binding on all Parties.

 

13.3                        Upon the occurrence of any disputes arising from the construction and performance of this Agreement or during the pending arbitration of any dispute, except for the matters under dispute, the Parties to this Agreement shall continue to exercise their respective rights under this Agreement and perform their respective obligations under this Agreement.

 

14.                               NOTICES

 

14.1                        All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such party set forth below. A confirmation copy of each notice shall also be sent by email. The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

14.1.1              Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively given on the date of delivery or refusal at the address specified for notices.

 

14.1.2              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).

 

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14.2                        For the purpose of notices, the addresses of the Parties are as follows:

 

	
Party A:
    	
Shenzhen Samoyed Information Technology Co., Ltd
    
	
Address:
    	
B4-902, Kexing Science Park, 15 Keyuan Road, Nanshan   District, Shenzhen, PRC
    
	
Attn:
    	
Wang Xiaojun
    
	
Phone:
    	
XXXXXX
    
	
 
    	
 
    
	
Party B:
    	
Shenzhen Wuyu Technologies Services Co., Ltd
    
	
Address:
    	
B4-903, Building B4, Kexing Science Park, 15 Keyuan   Road, Nanshan District, Shenzhen, PRC
    
	
Attn:
    	
LIN Xi
    
	
Phone:
    	
XXXXXX
    
	
 
    	
 
    
	
Party C:
    	
Shenzhen Samoyed Internet Finance Service Co., Ltd
    
	
Address:
    	
29-G2, Building 2, China Phoenix Mansion, 2008 Shen   Nan Avenue, Fu Zhong Community, Lian Hua Jie Dao, Fu Tian District, Shenzhen,   PRC
    
	
Attn:
    	
HU Chaomei
    
	
Phone:
    	
XXXXXX
    

 

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

 

15.                               SEVERABILITY

 

In the event that one or several of the provisions of this Agreement are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or compromised in any respect. The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

16.                               EFFECTIVENESS

 

16.1                        Any amendments, changes and supplements to this Agreement shall be in writing and shall become effective upon affixation of the signatures or seals of the Parties.

 

16.2                        The signing and effectiveness of this Agreement shall not affect the validity and legality of Original Agreement, and shall not affect the enforcement of the terms under Original Agreement which are not related to the matters agreed hereof.

 

16.3                        This Agreement is written in Chinese and English in four (4) copies.  Pledgor, Pledgee and Party C shall hold one copy respectively, and one copy shall be used for registration. Each copy of this Agreement shall have equal validity.  In case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.

 

[The remainder of this page is intentionally left blank].

 

8

 

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

 

 

Party A: Shenzhen Samoyed Information Technology Co., Ltd. (Seal)

 

 

	
By:
    	
/s/ Lin Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Lin Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Legal Representative/Authorized   Signatory
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
2018/9/17
    	
 
    

 

 

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

 

 

Party B:                                      Shenzhen Wuyu Technologies Services Co., Ltd. (Seal)

 

 

	
By:
    	
/s/ Lin Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Lin Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
2018/9/17
    	
 
    

 

 

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

 

 

Party C:       Shenzhen Samoyed Internet Finance Service Co., Ltd. (Seal)

 

 

	
By:
    	
/s/ Lin Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Lin Jianming
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Legal   Representative/Authorized Signatory
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
2018/9/17

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