Document:

Exhibit 10.7

 

Execution Version

 

SERIES B-1 PREFERRED SHARE PURCHASE AGREEMENT

 

THIS SERIES B-1 PREFERRED SHARE PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of April 12, 2019 (the “Effective Date”), by and among:

 

1.              Luckin Coffee Inc., an exempted company organized under the laws of the Cayman Islands with its company number of [                  ] (the “Company”);

 

2.              Luckin Coffee Investment Inc., a company incorporated under the laws of the British Virgin Islands, with its company number of [                  ]  (the “BVI Company”);

 

3.              Luckin Coffee (Hong Kong) Limited (瑞幸咖啡(香港)有限公司), a company incorporated under the laws of Hong Kong, with its company number of [                  ] (the “HK Company”);

 

4.              Beijing Luckin Coffee Co., Ltd. (瑞幸咖啡(北京)有限公司), a limited liability company incorporated under the laws of the PRC with its registered number of [                  ] (the “Beijing WFOE”);

 

5.              China Luckin Coffee Co., Ltd. (瑞幸咖啡(中国)有限公司), a limited liability company incorporated under the laws of the PRC with its registered number of [                  ] (the “Xiamen WFOE”);

 

6.              Tianjin Luckin Coffee Co., Ltd. (瑞幸咖啡(天津)有限公司), a limited liability company incorporated under the laws of the PRC with its registered number of [                  ] (the “Tianjin WFOE”);

 

7.              Pingtan Luckin Coffee E-Commerce Co., Ltd. (瑞幸咖啡电子商务(平潭)有限公司), a limited liability company incorporated under the laws of the PRC with its registered number of [                  ] (the “Pingtan WFOE”);

 

8.              Beijing Luckin Coffee Technology Co., Ltd. (北京瑞吉咖啡技术有限公司), a limited liability company incorporated under the laws of the PRC with its registered number of [                  ] (the “VIE Entity”, and together with the Company, the BVI Company, the HK Company, the Beijing WFOE, the Xiamen WFOE, the Tianjin WFOE and the Pingtan WFOE, the “Group Company Parties”);

 

9.              Zhiya Qian (钱治亚), a citizen of the PRC with identification number of [                  ] (the “Founder A”);

 

10.       Summer Fame Limited, a company incorporated under the laws of the British Virgin Islands, with its company number of [                  ] (the “Founder A Holdco”);

 

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11.       Min Chen (陈敏), a citizen of the PRC with identification number of [                  ] (the “Founder B”, together with Founder A, collectively the “Founders” and each, a “Founder”);

 

12.       May Bliss Limited, a company incorporated under the laws of the British Virgin Islands, with its company number of [                  ] (the “Founder B Holdco”, together with Founder A, Founder A Holdco and Founder B, collectively, the “Founder Parties”, and each, a “Founder Party”);

 

13.       Haode Investment Inc., a company incorporated under the laws of the British Virgin Islands, with its company number of [                  ] (“Haode Investment”);

 

14.       Darsana Master Fund LP, a company incorporated under the laws of the Cayman Islands, with its company number of [                  ] (the “Darsana Investor”);

 

15.       Bel45 Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

16.       Tango Capital Opportunities Fund, L.P. a limited partnership formed under the laws of the State of Delaware, USA;

 

17.       TSCL Private Markets Fund, L.P., an exempted limited partnership formed under the laws of the Cayman Islands;

 

18.       NDSIB Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

19.       BlackRock Private Opportunities Fund IV, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

20.       BR POF IV Cayman Master Fund, L.P., an exempted limited partnership formed under the laws of the Cayman Islands;

 

21.       High Rock Direct Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

22.       BlackRock MD Private Opportunities Fund, L.P., an exempted limited partnership formed under the laws of the Cayman Islands;

 

23.       1885 Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

24.       NHRS Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

25.       Sullivan Way Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

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26.       Coin Private Opportunities, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

27.       POF III Scottish Master, L.P., a limited partnership formed under the laws of Scotland, UK;

 

28.       BlackRock Inverwood Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

29.       OV Private Opportunities, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

30.       Red River Direct Investment Fund III, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

31.       BR/ERB Co-Investment Fund II, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

32.       BlackRock MSV Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

33.       Private Equity Partners VII Master, L.P., a limited partnership formed under the laws of Scotland, UK;

 

34.       Private Equity Partners VII US, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

35.       Total Alternatives Fund — Private Equity LP, an exempted limited partnership formed under the laws of the Cayman Islands;

 

36.       Total Alternatives Fund — Private Equity (B) LP, an exempted limited partnership formed under the laws of the Cayman Islands; and

 

37.       BlackRock Private Opportunities Fund IV Master SCSp, a société en commandite spéciale (special limited partnership) formed under the laws of Luxembourg (Party (15) through Party (37), collectively, the “BlackRock Investors” and each, a “BlackRock Investor”, and together with the Darsana Investor the “Investors” and each, an “Investor”).

 

The Group Company Parties, the Founder Parties, Haode Investment and the Investors are referred to collectively herein as the “Parties”, and each individually as a “Party”.

 

RECITALS

 

A.                                    The Company was incorporated under the laws of the Cayman Islands on June 16th, 2017 with its registered address at Conyers Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands.

 

B.                                    The Company proposes to issue and sell certain number of Series B-1 Preferred Shares to the Investors pursuant to the terms and subject to the conditions of this Agreement.

 

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C.                                    The Parties desire to enter into this Agreement and make the respective representations, warranties, covenants and agreements set forth herein on the terms and conditions set forth herein.

 

WITNESSETH

 

THE PARTIES HEREBY AGREE AS FOLLOWS:

 

1.                                      Definitions and Interpretation.

 

1.1                Definitions.

 

“Affiliate” means, with respect to any given Person, a Person that Controls, is Controlled by, or is under common Control with the given Person or any Persons with the same investment manager or whose investment manager Controls, is Controlled by, or is under common Control with another Person’s investment manager.

 

“Angel Shares” means the Angel-1 Shares and Angel-2 Shares, collectively.

 

“Angel-1 Shares” means the Company’s angel-1 shares, with the rights and privileges as provided in the Memorandum and Articles.

 

“Angel-2 Shares” means the Company’s angel-2 shares, with the rights and privileges as provided in the Memorandum and Articles.

 

“Angel Investor Party” or “Angel Investor Parties” means the holder(s) of Angel Shares.

 

“Applicable Laws” means, with respect to any Person, all applicable provisions of all (a) constitutions, treaties, statues, laws (including the common law), codes, rules, regulations, ordinances or orders of any Governmental Authority, and (b) notices, orders, decisions, injunctions, judgments, awards and decrees of or agreements with any Governmental Authority.

 

“Board” means the board of directors of the Company.

 

“Business Day” means any day other than a Saturday, Sunday or a day that the banks in the PRC, Hong Kong, Singapore, the Cayman Islands or the British Virgin Islands are required by law or executive order to be closed.

 

“CFC” means a controlled foreign corporation as defined in the Code.

 

“Closing Date” means the date of the Closing.

 

“Code” means the U.S. Internal Revenue Code of 1986, as amended.

 

“Control” of a given Person means the power of authority, whether exercised or not, to direct the business, management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, which power or authority shall conclusively be presumed to exist upon possession of beneficial ownership or power to direct the vote of more than 50% of the votes entitled to be cast at shareholder’s meetings of such Person

 

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or power to appoint a majority of the members of the board of directors of such Person; the terms “Controlling” and “Controlled” have meanings correlative to the foregoing.

 

“Control Documents” means the documents entered into between the VIE Entity, its shareholders and certain other Group Companies, which shall grant the Beijing WFOE with effective Control over 100% economic interest in the VIE Entity, including (a) the Master Exclusive Service Agreement entered into by the Beijing WFOE and the VIE Entity dated as of July 20, 2018, (b) the Business Cooperation Agreement entered into by the Beijing WFOE, the VIE Entity and the shareholders of the VIE Entity dated as of July 20, 2018, (c) the Confirmation and Guarantee Letters respectively issued by the shareholders of the VIE Entity, dated as of July 20, 2018 or September 20, 2018, as applicable, (d) the Spousal Consents respectively issued by the spouse of certain shareholders of the VIE Entity dated as of July 20, 2018 or September 20, 2018, as applicable, (e) the Exclusive Option Agreement entered into by the Beijing WFOE, the VIE Entity and the shareholders of the VIE Entity dated as of July 20, 2018, (f) the Proxy Agreement and Power of Attorney entered into by the Beijing WFOE, the VIE Entity and the shareholders of the VIE Entity dated as of July 20, 2018, and (g) the Share Pledge Agreement entered into by the Beijing WFOE and the Founders dated as of September 20, 2018, each as amended from time to time.

 

“Conversion Shares” means Ordinary Shares issuable upon conversion of the Preferred Shares, as applicable.

 

“Equity Securities” means any Ordinary Shares and Ordinary Share Equivalents.

 

“FCPA” means the Foreign Corrupt Practices Act of the United States (15 U.S.C. §§ 78dd-1, et seq.), as amended.

 

“Fundamental Representations” means those representations and warranties of the Group Company Parties, Haode Investment and Founder Parties set forth in Sections 3.1 (Organization; Good Standing; Qualification), 3.2 (Capitalization and Voting Rights), 3.3 (Group Structure), 3.4 (Authorization), 3.5 (Valid Issuance of Series B-1 Preferred Shares), 3.6 (Consents) and 3.7 (Offering).

 

“Governmental Authority” means any court, tribunal, arbitrator, authority, agency, commission, official or other instrumentality of the PRC, any foreign country or any domestic or foreign state, county, city or other political subdivision and their respective local and provincial branches or departments.

 

“Group” means the Group Companies collectively.

 

“Group Company” means the Company and its Subsidiaries from time to time (Part A of the Schedule I sets forth all of the Company’s Subsidiaries as of the date of this Agreement) and collectively, the “Group Companies”.

 

“Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of China.

 

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“Indemnifiable Loss” means, with respect to any Person, any action, claim, dispute, proceeding, cost, damage, deficiency, diminution in value, disbursement, expense, liability, loss, obligation, penalty, Taxes, settlement or judgment of any kind or nature imposed on or otherwise incurred or suffered by such Person.

 

“Intellectual Property” means any and all (i) works, registered and unregistered copyrights, copyright registrations and applications, moral rights and attribution rights, (ii) know-how, trade secrets, customer lists, patents and patent applications, (iii) processes and procedures, software, firmware, programs and source disks, source codes, designs, composition services, research records, records of invention and test information, (iv) trade names, trade dress, trademarks, and service marks, and registrations and applications therefor, as well as all goodwill associated with and symbolized thereby, (v) internet uniform resource locators, domain names, data, databases and data collections and all rights therein, and (vi) rights of privacy and publicity and rights to personal information.

 

“Investors’ Rights Agreement” means the Third Amended and Restated Investors’ Rights Agreement to be entered into by and among relevant Parties in the form attached hereto as Exhibit C.

 

“IP Assets” means all Intellectual Property owned or used by or purported to be owned or used by the Group Companies.

 

“Key Employees” means the employees listed in Schedule IV.

 

“Lien” means a mortgage, lien, security interest, pledge, encumbrance or any option (whether consensual, statutory or otherwise) or other contract to enter into any of the foregoing or any power of attorney in respect of any of the foregoing, or third party rights of any kind.

 

“Material Adverse Effect” means any change, event or effect that (i) is or would reasonably be expected to be materially adverse to the business, assets, financial condition or results of operations or prospects of any Group Company individually or the Group Companies taken together as a whole or (ii) is or would materially impair the validity or enforceability of this Agreement against any Group Company or (iii) is or would be reasonably expected to materially and adversely affect any Group Company’s ability to perform their obligations under this Agreement, any other Transaction Document or the transactions contemplated hereunder or thereunder.

 

“Memorandum and Articles” means the Fourth Amended and Restated Memorandum and Articles of the Company, in the form attached hereto as Exhibit A, as may be amended from time to time.

 

“Ordinary Share Equivalents” means securities exercisable or convertible into Ordinary Shares, including without limitation the Preferred Shares.

 

“Ordinary Shares” means the Company’s ordinary shares, with the rights and privileges as provided in the Memorandum and Articles.

 

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“Person” means any individual, corporation, partnership, proprietorship, association, limited liability company, firm, branch, trust, estate or other enterprise or entity.

 

“PFIC” means a passive foreign investment company as defined in the Code.

 

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

 

“Preferred Shares” means the Series A Preferred Shares, the Series B Preferred Shares and the Series B-1 Preferred Shares.

 

“RMB” means the legal currency of the PRC.

 

“SAFE” means the State Administration of Foreign Exchange or its competent local counterpart.

 

“Second Amended IRA” means the Second Amended and Restated Investors’ Rights Agreement entered into by and among relevant Parties thereof dated January 9, 2019.

 

“Securities Act” means the U.S. Securities Act of 1933, as amended from time to time.

 

“Series A Preferred Shares” means the Company’s series A preferred shares, par value US$0.001, with the rights and privileges as set forth in the Memorandum and Articles.

 

“Series A Investor(s)” means the holder(s) of Series A Preferred Shares.

 

“Series B Preferred Shares” means the Company’s series B preferred shares, par value US$0.001, with the rights and privileges as set forth in the Memorandum and Articles.

 

“Series B Investor(s)” means the holder(s) of the Series B Preferred Shares.

 

“Series B-1 Preferred Shares” means the Company’s series B-1 preferred shares, par value US$0.001, with the rights and privileges as set forth in the Memorandum and Articles

 

“Subsidiary” means, with respect to any Person (other than a natural person), any other Person directly or indirectly Controlled by such first-mentioned Person.

 

“Transaction Documents” means, collectively, this Agreement, the Investors’ Rights Agreement, the Memorandum and Articles and any other document or agreement in connection with the transactions contemplated herein or therein.

 

“United States” means the United States of America.

 

“US$” means the legal currency of the United States of America.

 

1.2                     Terms Defined Elsewhere in this Agreement.  The following terms are defined in this Agreement as follows:

 

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“Agreement”
    	
 
    	
Preamble
    
	
“Beijing WFOE”
    	
 
    	
Preamble
    
	
“Books and Records”
    	
 
    	
Section 3.8
    
	
“BlackRock Investors”
    	
 
    	
Preamble
    
	
“BVI Company”
    	
 
    	
Preamble
    
	
“Claimant”
    	
 
    	
Section 10.13
    
	
“Closing”
    	
 
    	
Section 2.3
    
	
“Company”
    	
 
    	
Preamble
    
	
“Company Personnel”
    	
 
    	
Section 3.15(ii)
    
	
“Darsana Investor”
    	
 
    	
Preamble
    
	
“Disclosing Party”
    	
 
    	
Section 8.3
    
	
“Disclosure Schedule”
    	
 
    	
Section 3
    
	
“Dispute”
    	
 
    	
Section 10.13
    
	
“Effective Date”
    	
 
    	
Preamble
    
	
“Expenses”
    	
 
    	
Section 10.12
    
	
“Financing Terms”
    	
 
    	
Section 8.1
    
	
“Founder”
    	
 
    	
Preamble
    
	
“Founder Parties”
    	
 
    	
Preamble
    
	
“Financial Statements”
    	
 
    	
Section 3.16
    
	
“Group Company Parties”
    	
 
    	
Preamble
    
	
“Haode   Investment”
    	
 
    	
Preamble
    
	
“HK Company”
    	
 
    	
Preamble
    
	
“HKIAC”
    	
 
    	
Section 10.13
    
	
“HKIAC Rules”
    	
 
    	
Section 10.13
    
	
“IFRS”
    	
 
    	
Section 3.16
    
	
“Indemnified Party”
    	
 
    	
Section 9.1
    
	
“Indemnifying Party”
    	
 
    	
Section 9.1
    
	
“Investors”
    	
 
    	
Preamble
    
	
“Joinder Agreement”
    	
 
    	
Section 10.3
    
	
“Long   Stop Date”
    	
 
    	
Section 2.3
    
	
“Party” or “Parties”
    	
 
    	
Preamble
    
	
“Permit”
    	
 
    	
Section 3.1
    
	
“Pingtan WFOE”
    	
 
    	
Preamble
    
	
“Respondent”
    	
 
    	
Section 10.13
    
	
“Tianjin WFOE”
    	
 
    	
Preamble
    
	
“Social Insurance”
    	
 
    	
Section 3.19
    
	
“Statement Date”
    	
 
    	
Section 3.16
    
	
“Subscription Price”
    	
 
    	
Section 2.1
    
	
“Subscription Shares”
    	
 
    	
Section 2.1
    
	
“Tax”, “Taxes” and “Taxable”
    	
 
    	
Section 3.9
    
	
“Tax Authority”
    	
 
    	
Section 3.9
    
	
“Tax Returns”
    	
 
    	
Section 3.9
    
	
“Underlying   Investor”
    	
 
    	
Section 8.3
    
	
“VIE Entity”
    	
 
    	
Preamble
    
	
“Xiamen WFOE”
    	
 
    	
Preamble
    
	
“Xizang Trust”
    	
 
    	
Section 3.2 of the Disclosure Schedule
    
	
“Xizang Trust Cooperation Memorandum”
    	
 
    	
Section 3.2 of the Disclosure Schedule
    

 

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“Xizang Trust Issue Price”
    	
 
    	
Section 3.2 of the Disclosure Schedule
    

 

1.3                      Interpretation

 

(i)                                     Directly or Indirectly.  The phrase “directly or indirectly” means directly, or indirectly through one or more intermediate Persons or through contractual or other arrangements, and “direct or indirect” has the correlative meaning.

 

(ii)                                  Gender and Number.  Unless the context otherwise requires, all words (whether gender-specific or gender neutral) shall be deemed to include each of the masculine, feminine and neuter genders, and words importing the singular include the plural and vice versa.

 

(iii)                               Headings.  Headings are included for convenience only and shall not affect the construction of any provision of this Agreement.

 

(iv)                              Include not Limiting.  “Include,” “including,” “are inclusive of” and similar expressions are not expressions of limitation and shall be construed as if followed by the words “without limitation.”

 

(v)                                 Law.  References to “law” shall include all applicable laws, regulations, rules and orders of any Governmental Authority, securities exchange or other self-regulating body, any common or customary law, constitution, code, ordinance, statute or other legislative measure and any regulation, rule, treaty, order, decree or judgment; and “lawful” shall be construed accordingly.

 

(vi)                              References to Documents.  References to this Agreement include the Schedules and Exhibits, which form an integral part hereof.  A reference to any Section, Schedule or Exhibit is, unless otherwise specified, to such Section of, or Schedule or Exhibit to this Agreement.  The words “hereof,” “hereunder” and “hereto,” and words of like import, unless the context requires otherwise, refer to this Agreement as a whole and not to any particular Section hereof or Schedule or Exhibit hereto.  A reference to any document (including this Agreement) is to that document as amended, consolidated, supplemented, novated or replaced from time to time.

 

(vii)                           Time.  If a period of time is specified and dates from a given day or the day of a given act or event, such period shall be calculated exclusive of that day.

 

(viii)                        Writing.  References to writing and written include any mode of reproducing words in a legible and non-transitory form including emails and faxes.

 

(ix)                              Language.  This Agreement is drawn up in the English language.  If this Agreement is translated into any language other than English, the English language text shall prevail.

 

(x)                                 Reference to Parties.  A reference to a Party, unless the context otherwise requires, includes a reference to that Party’s legal personal representatives, successors and permitted assigns.

 

(xi)                              Knowledge.  A reference to “the knowledge of the Founder Parties, Haode Investment and Group Company Parties” includes, without limitation, the knowledge, information and belief of any of the Founder Parties, Haode Investment, the Group Companies and the directors

 

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and senior management personnel of each Group Company, and is deemed to include the knowledge, information and belief which any of such persons would have if he/she/it had made all reasonable enquiries.

 

2.                                      Subscription and Issuance of Shares

 

2.1                     Issuance of Subscription Shares. Subject to the terms and conditions of this Agreement, each of the Investors hereby agrees to subscribe at the Closing and the Company hereby agrees to allot and issue to each of the Investors at the Closing, such number of Series B-1 Preferred Shares as set forth opposite the name of such Investor in Schedule II (the “Subscription Shares”) at the per share price of US$ 865.91. The purchase price payable by each Investor (the “Subscription Price”) is as set forth opposite the name of such Investor in Schedule II.  The Subscription Shares, when issued at the Closing, will comprise such percentage of the Company’s allotted and issued share capital on a fully-diluted and as converted basis as set forth opposite the name of each Investor in Schedule II. Schedule V sets forth the capitalization table of the Company immediately before the Closing, and Schedule VI sets forth the capitalization table of the Company immediately after the Closing.

 

2.2                     Payment of Subscription Price.  The Subscription Price shall be paid in available US$ by the Investors to the bank account as designated by the Company on the date of the Closing, unless otherwise agreed by the Company and the Investors.

 

2.3                     Closing.  The consummation of the subscription and issuance of all the Subscription Shares pursuant to Section 2.1 (the “Closing”) shall take place remotely via the exchange of documents and signatures as soon as possible after the date hereof but in any event before April 23, 2019 (the “Long Stop Date”). For the avoidance of doubt, each Investor’s obligation to consummate the Closing is several and not joint and, in the event that any Investor does not close on the Closing Date, as long as any other Investor determines to consummate the Closing, the Company shall consummate the Closing with such other Investor pursuant to the terms and conditions of this Agreement.

 

2.4                     Closing Deliveries

 

At the Closing, the Company shall deliver (or cause to be delivered) to each Investor, in addition to all other closing deliveries set forth in Section 5 and Section 6, pursuant to Section 2.1:

 

(i)                                    a copy of the Register of Members of the Company, duly certified by the registered agent of the Company, updated to reflect the subscription of the applicable Subscription Shares by each of the Investors;

 

(ii)                                 a copy of duly executed share certificate issued in the name of such Investor representing the applicable Subscription Shares being issued to such Investor at the Closing, with the original (duly executed for and on behalf of the Company) to be delivered to such Investor within ten (10) Business Days after the Closing;

 

(iii)                              a copy of the Memorandum and Articles duly adopted by the Board and shareholders of the Company in the form attached hereto as Exhibit A, with evidence of the filing

 

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of such adopted Memorandum and Articles with the Registrar of Companies in the Cayman Islands to be delivered to such Investor within twenty (20) Business Days after the Closing;

 

(iv)                             a copy of the Investors’ Rights Agreement duly executed by relevant Parties in the form attached hereto as Exhibit C;

 

(v)                                documents evidencing that each of the Founder Parties, Angel Investor Parties, Series A Investors and Series B Investors has waived or has been deemed to waive its pre-emption right with respect to the Subscription Shares; and

 

(vi)                             a certificate duly executed by one director of the Company (a) stating that the conditions specified in Section 5 have been fulfilled as of the Closing and (b) attaching thereto copies of all resolutions that shall approve the transactions contemplated under the Transaction Documents, including without limitation, (i) the entry into this Agreement, (ii) the adoption of the Memorandum and Articles in the form attached hereto as Exhibit A, and (iii) the adoption of the Investors’ Rights Agreement in the form attached hereto as Exhibit C.

 

3.                                      Representations and Warranties of the Group Company Parties, Haode Investment and the Founder Parties.

 

The Group Company Parties, Haode Investment and the Founder Parties hereby jointly and severally represent and warrant to the Investors that each of the following statements is true, complete and accurate as of the date of this Agreement and the Closing (other than as otherwise provided in this Agreement, or fairly, accurately and specifically qualified or excepted in the Disclosure Schedule attached hereto as Exhibit B (the “Disclosure Schedule”)):

 

3.1                     Organization; Good Standing; Qualification.

 

(i)                                     Each Group Company is duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its establishment. Schedule V sets forth a true, complete and accurate capitalization table of the Company immediately before the Closing, and Schedule VI sets forth a true, complete and accurate capitalization table of the Company immediately after the Closing.

 

(ii)                                  Each Group Company has all requisite corporate power and authority to own, lease and operate its properties and assets and to carry on its business as now conducted and is duly qualified to transact business in each jurisdiction in which it operates its business.

 

(iii)                               Each of Founder A Holdco, Founder B Holdco and Haode Investment is duly organized, validly existing and in good standing under the laws of the jurisdiction of its establishment.  Each of the Company, the HK Company and the BVI Company is a holding company and save for their holding of the share capital in the relevant Subsidiaries, none of them has carried out any business since the date of its incorporation and does not have any assets or liabilities. For the avoidance of doubt, if the HK Company carries out any business after the Closing, it shall not be deemed as a violation of this Section.

 

(iv)                              Except as disclosed in Section 3.1 of the Disclosure Schedule, each Group Company has obtained all permits, licenses necessary for the effective operation of its business.

 

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3.2                      Capitalization and Voting Rights.

 

(i)                                     The capitalization of the Company immediately before the Closing will consist of (i) 45,400,000 authorized Ordinary Shares, among which 750,000 Ordinary Shares are issued and outstanding; (ii) 1,000,000 Angel-1 Shares, among which 915,750 Angel-1 Shares are issued and outstanding; (iii) 600,000 Angel-2 Shares, among which 513,000 Angel-2 Shares are issued and outstanding; (iv) 2,000,000 Series A Preferred Shares, among which 544,688 Series A Preferred Shares are issued and outstanding, and (v) 1,000,000 Series B Preferred Shares, among which 279,152 Series B Preferred Shares are issued and outstanding. The capitalization of the Company immediately after the Closing will consist of (i) 44,400,000 authorized Ordinary Shares, among which 750,000 Ordinary Shares are issued and outstanding; (ii) 1,000,000 Angel-1 Shares, among which 915,750 Angel-1 Shares are issued and outstanding; (iii) 600,000 Angel-2 Shares, among which 513,000 Angel-2 Shares are issued and outstanding; (iv) 2,000,000 Series A Preferred Shares, among which 544,688 Series A Preferred Shares are issued and outstanding; (v) 1,000,000 Series B Preferred Shares, among which 279,152 Series B Preferred Shares are issued and outstanding and (vi) 1,000,000 Series B-1 Preferred Shares, among which 188,393 Series B-1 Preferred Shares are issued and outstanding;

 

(ii)                                  Except as disclosed in Section 3.2 of the Disclosure Schedule, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal), or other third party rights of any kind, proxy or shareholders agreements or agreements of any kind for the purchase, exchange or acquisition of any Group Company of any of their securities.

 

(iii)                               The Company is not subject to any obligation (contingent or otherwise) to purchase or otherwise acquire or retire any equity interest held by its shareholders or to purchase or otherwise acquire or retire any of its other outstanding securities.

 

3.3                      Group Structure. Part A of Schedule I sets forth a true, complete and accurate list of all of the Company’s Subsidiaries and their respective registered capital and paid-in capital as of the date of this Agreement (for the avoidance of doubt, the Subsidiaries in the list shall not include branch offices of the Group Companies). Part B of Schedule I sets forth a true, complete and accurate group structure chart of the Group Companies showing the shareholding and Control relationships among the Group Companies as of the date of this Agreement.  None of the Group Companies owns or Controls, directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, association, or other entity that is not a Group Company. No Group Company is obligated to make any investment in or capital contribution in or on behalf of any other Person.

 

3.4                      Authorization.  Each of the Founder Parties, Haode Investment, and the Group Company Parties has all requisite power and authority to execute and deliver this Agreement and each other Transaction Document to which it is a party and to carry out and perform its obligations hereunder and thereunder.  All corporate action on the part of each of the Founder Parties, Haode Investment, the Group Company Parties and their respective officers, directors and shareholders necessary for the authorization, execution and delivery of this Agreement and each other Transaction Document to which it is a party, the performance of all obligations of each of the Group Company Parties hereunder and thereunder, and the authorization, allotment, issuance (or

 

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reservation for issuance) and delivery by the Company of the Series B-1 Preferred Shares being issued hereunder and the Ordinary Shares issuable upon conversion of such Series B-1 Preferred Shares being issued hereunder, has been taken or will be taken prior to or on the Closing.  Each Transaction Document to which each of the Founder Parties, Haode Investment, and the Group Company Parties is a party has been duly executed and delivered by each such party and constitutes valid and legally binding obligations thereof, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.  Except as disclosed in Section 3.4 of the Disclosure Schedule, none of the issuance of: (a) the Subscription Shares or (b) the Conversion Shares is subject to any preemptive rights or other similar rights or limitations.

 

3.5                      Valid Issuance of Series B-1 Preferred Shares.

 

(i)                                     The Series B-1 Preferred Shares that are being subscribed by or issued to the Investors hereunder, when issued and delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, and fully paid, and will be free of any Liens and/or restrictions on transfer other than such restrictions on transfer as may be imposed by the Transaction Documents. The Ordinary Shares issuable upon conversion of the Series B-1 Preferred Shares subscribed under this Agreement, upon issuance in accordance with the terms of the Memorandum and Articles, will be duly and validly issued, and fully paid, and will be free of any Liens and/or restrictions on transfer other than such restrictions on transfer as may be imposed by the Transaction Documents.

 

(ii)                                  All presently outstanding shares of the Company are duly and validly issued, and fully paid, and have been issued in full compliance with Applicable Laws, including to the extent applicable, the Securities Act and all other antifraud and other provisions of applicable securities laws and regulations.

 

3.6                      Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental Authority or other third party on the part of any of the Group Company Parties, the Founder Parties, or Haode Investment will be required in connection with the execution, delivery and performance of the Transaction Documents and the consummation of the transactions contemplated hereby and thereby is required, which has not already been secured or effected or will be secured or effected prior to the Closing.

 

3.7                      Offering.  The offer, sale and issuance of the Series B-1 Preferred Shares and the Conversion Shares (when issued), as contemplated by this Agreement, is not required to comply with or is otherwise exempt from any registration and prospectus delivery and related requirements of the Securities Act and any applicable securities laws, and neither the Company nor any authorized agent acting on its behalf has taken or will take any action that would result in the Company having to comply with such requirements or cause the loss of such exemptions.

 

3.8                      Books and Records; Minutes.  All accounts, ledgers, material files, documents, instruments, papers, books and records relating to the business, operations, conditions (financial or other) of each Group Company, results of operations, and assets and properties of each Group

 

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Company (collectively, the “Books and Records”), each as demonstrated to the Investors and their representatives, are true, correct and complete in all material respects, there are no material inaccuracies or discrepancies of any kind contained or reflected therein, and they have been maintained in accordance with relevant legal requirements and industry standards, as applicable, including the maintenance of an adequate system of internal controls.  The minute books of the Company, as demonstrated to the Investors and its representatives, contain complete and accurate records of all meetings of and corporate actions or written consents by the shareholders and the board of directors of such Group Company and, to the extent that such minute books are deficient, all material information not contained in such minutes has been conveyed to the Investors in other written form.

 

3.9                      Tax Matters.

 

(i)                                     Each Group Company (a) has timely filed all Tax (as defined below) returns, statements, reports, declarations and other forms and documents (“Tax Returns”) that are required to have been filed by it with any Governmental Authority, except where the failure to timely file Tax Returns would not have a Material Adverse Effect, (b) has timely paid all Taxes owed by it which are due and payable, except where the failure to pay Tax would not have a Material Adverse Effect, and (c) has correctly deducted or withheld all Tax which it has been obliged under Applicable Laws to deduct or withhold, and has properly accounted to the relevant Governmental Authority for all amounts of Tax so deducted or withheld, except where the failure to correctly deduct, withhold or properly account would not have a Material Adverse Effect. For purposes of this Agreement, the following terms have the following meanings: “Tax” (and, with correlative meaning, “Taxes” and “Taxable”) means any and all taxes including, without limitation, any income, alternative or add-on minimum tax, gross income, gross receipts, sales use, ad valorem, transfer, franchise, profits, value added, net worth, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, environmental or windfall profit tax, custom, duty or other tax, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest or any penalty, addition to tax or additional amount imposed by any United States, Cayman Islands, British Virgin Islands, PRC, Hong Kong or other local or foreign Governmental Authority or regulatory body responsible for the imposition of any such tax (domestic or foreign) (a “Tax Authority”).

 

(ii)                                  Each Tax Return referred to in paragraph (i) above was properly prepared in compliance with applicable Law and was (and will be) true, correct and complete.

 

(iii)                               Since the Statement Date, no Group Company has incurred any Liability for Taxes outside the ordinary course of business or otherwise inconsistent with past custom and practice.  There is no pending dispute with, or notice from, any Tax Authority relating to any of the Tax Returns filed by any Group Company or other Tax matters, and there is no proposed Liability for a deficiency in any Tax to be imposed upon the properties or assets of any Group Company.

 

(iv)                              No Group Company has been the subject of any examination or investigation by any Tax Authority relating to the conduct of its business or the payment or withholding of Taxes that has not been resolved or is currently the subject of any examination or investigation by any Tax Authority relating to the conduct of its business or the payment or withholding of Taxes.

 

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(v)                                 No Group Company is or has ever been a PFIC or CFC. No Group Company anticipates that it will become a PFIC or CFC for the current Taxable year or any future Taxable year.

 

3.10               Litigation.  Except as disclosed in Section 3.10 of the Disclosure Schedule, there is no litigation, arbitration, administrative investigation or other proceeding pending or threatened (whether or not the defense thereof or liabilities in respect thereof are covered by insurance) against or significantly affecting any Group Company, or any of its respective assets or properties, nor do any facts exist which would likely give rise to any such litigation, arbitration or proceeding, except where such litigation, arbitration or proceeding would not have a Material Adverse Effect on the Group Companies taken as a whole.  There has not been any investigation, enquiry or disciplinary proceeding by any Governmental Authorities concerning any Group Company and none is pending or threatened.

 

3.11               Compliance with Applicable Laws.

 

(i)                                     Except as disclosed in Section 3.11 of the Disclosure Schedule, each Group Company, is, and at all times has been, in full compliance with all Applicable Laws in all material respects.

 

(ii)                                  To the knowledge of the Founder Parties, Haode Investment and Group Company Parties, no event has occurred and no circumstance exists that (with or without notice or lapse of time) (a) may constitute or result in a violation by any Group Company of, or a failure on the part of any Group Company to comply with any Applicable Law, except where the failure to be in compliance would not have a Material Adverse Effect or (b) may give rise to any obligation on the part of any Group Company to undertake, or to bear all or any portion of the cost of, any remedial action of any nature.

 

(iii)                               No Group Company has received any notice or other communication (whether oral or written) from any Governmental Authority regarding (a) any actual, alleged, possible, or potential violation of, or failure to comply with, any Applicable Law, or (b) any actual, alleged, possible, or potential obligation on the part of any Group Company to undertake, or to bear all or any portion of the cost of, any remedial action of any nature.

 

(iv)                              To the knowledge of the Founder Parties, Haode Investment and Group Company Parties, no Group Company or any director, agent, employee or any other person acting for or on behalf of such Group Company, has directly or indirectly (a) made any contribution, gift, bribe, payoff, influence payment, kickback, or any other fraudulent payment in any form, whether in money, property, or services to any person (w) to obtain favorable treatment in securing business for such Group Company or any other member of the Group Company, (x) to pay for favorable treatment for business secured, (y) to obtain special concessions or for special concessions already obtained, for or in respect of such Group Company or any other Group Company, or (z) in violation of any Applicable Law, including the FCPA, or (b) established or maintained any fund or assets in which such Group Company has proprietary rights that have not been recorded in the Books and Records of such Group Company.

 

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3.12               Compliance with Instruments.  No Group Company is in, nor will the conduct of business of any of them as proposed to be conducted result in, any violation, breach or default of the Memorandum and Articles or any other constitutional documents (which include, as applicable, any articles of incorporation, by-laws, join venture contracts and the like), or of any provision of any judgment, decree, order, statue, rule or regulation applicable to or binding upon any of them.  The execution, delivery and performance of any Transaction Documents, and the consummation of the transactions contemplated herein and therein, will not result in any violation, breach or default, or be in conflict with or constitute, with or without the passage of time or the giving of notice or both, either (a) a default under the Memorandum and Articles or similar charter documents of any Group Company or any such contract, agreement or instrument to which any Group Company, Founder Party or Haode Investment is a party or to which the assets of any Group Company are subject, (b) an event which results in the creation of any Lien, charge or encumbrance upon any asset of any Group Company, or (c) any violation of Applicable Laws.

 

3.13               Intellectual Property Rights.

 

(i)                                     The Group Companies exclusively own all right, title and interest in and to the IP Assets, free and clear of any Liens.  No Group Company or, to the knowledge of the Founder Parties, Haode Investment and Group Company Parties, none of the Group’s employees, officers or directors has taken any actions or failed to take any actions that would cause any of IP Assets to be invalid, unenforceable or not subsisting.  No IP Asset is the subject of any security interest, Lien, license or other contract granting rights therein to any other Person.  No Group Company has (a) transferred or assigned, (b) granted a license to, or (c) provided to, any Person any IP Asset.

 

(ii)                                  (a) To the knowledge of the Founder Parties, Haode Investment and Group Company Parties, (i) neither any IP Assets nor their use infringe upon or misappropriate the rights of any other Person and (ii) none of the IP Assets is infringed upon or misappropriated by any other Person; and (b) none of the Founder Parties, Haode Investment or the Group Companies has received any claim, any cease and desist or equivalent letter, any invitation to enter into a license, or any other notice of any allegation that any IP Assets or their use infringes upon, misappropriates or otherwise violates the Intellectual Property of any third parties or requires any payment to another Person.

 

(iii)                               Any registrations with and applications to Governmental Authorities in respect of any IP Assets required by Applicable Laws have been made, are valid and in full force and effect.

 

(iv)                              The Founder Parties, Haode Investment and the Group Companies have taken all necessary steps to protect and preserve the secrecy, confidentiality and value of the IP Assets and any related trade secrets and know-how.

 

3.14               Compliance with the Employment Agreement.  Each of the Founders and Key Employees has entered into customary employment agreement, non-competition agreement, confidentiality agreement and assignment of inventions agreement with one of the Group Companies in the forms satisfactory to the Investors.  The terms of such agreements are binding on and enforceable against the Founders and the Key Employees under Applicable Laws.  None of the Group Companies, the Founders and the Key Employees is or has been in violation of such

 

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agreement.  Each Group Company has not given any notice of termination to or received any notice of resignation from any Founder or any Key Employee.

 

3.15               Compliance with the FCPA.

 

(i)                                     The Founder Parties, Haode Investment and the Group Companies have been and are in full compliance with the FCPA in all respects.  No event has occurred and no circumstance exists that (with or without notice or lapse of time) may constitute or result in a violation by any of the Founder Parties, Haode Investment and the Group Companies of, or a failure on the part of any of the Founder Parties, Haode Investment and the Group Companies to comply with, the FCPA.

 

(ii)                                  To the knowledge of the Founder Parties, Haode Investment and Group Company Parties, all the officers, directors, employees, agents and representatives of the Company (collectively, the “Company Personnel”) have been and are in full compliance with the FCPA in all respects.  To the knowledge of the Founder Parties, Haode Investment and Group Company Parties, no event has occurred and no circumstance exists that (with or without notice or lapse of time) may constitute or result in a violation by any of the Company Personnel of, or a failure on the part of any of the Company Personnel to comply with, the FCPA.

 

3.16              Financial Statements.  The Company has allowed each Investor to review the audited financial statements (including balance sheets, income statements and statements of cash flow) of the Company for the period from its inception ended as of December 31, 2018 (the “Statement Date”) (collectively, the “Financial Statements”). The Financial Statements (a) have been prepared on a consolidated basis in accordance with the books and records of the Group Companies, (b) fairly present the financial condition and position of the Group Companies as of the dates indicated therein and the results of operations and cash flows of the Group Companies for the periods indicated therein, and (c) were prepared in accordance with International Financial Reporting Standards (“IFRS”) applied on a consistent basis throughout the periods involved.  The Group’s accounting records are accurate, up-to-date, in its possession and properly completed in accordance with the applicable accounting standards and Applicable Laws.

 

3.17               Liabilities.  Except as disclosed in Section 3.17 of the Disclosure Schedule, no Group Company has any Liabilities of the type required to be disclosed on the Financial Statements except for (i) liabilities set forth in the Financial Statements that have not been satisfied since the Statement Date, and (ii) current liabilities incurred since the Statement Date in the ordinary course of the Group’s business consistent with its past practices and which do not exceed RMB 5,000,000 in the aggregate. None of the Group Companies is a guarantor or indemnitor or has provided security to secure any Liabilities of any other Person (other than a Group Company).

 

3.18               Title.

 

(i)                                     Except as disclosed in Section 3.18 of the Disclosure Schedule, the Group Companies have good and valid title to, or a valid leasehold interest in, all of their assets, whether real, personal or mixed, purported to be owned by them, free and clear of any Liens. The foregoing assets collectively represent in all material respects all assets, rights and properties necessary for the effective conduct of the business of the Group as currently conducted and as proposed to be

 

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conducted by the Group. Except for leased items, no Person other than a Group Company owns any interest in any such assets.  All leases of real or personal property to which a Group Company is a party are fully effective and afford such Group Company valid leasehold possession of the real or personal property that is the subject of the lease.

 

(ii)                                  All machinery, vehicles, equipment and other tangible personal property owned or leased by a Group Company are (a) in good condition and repair in all material respects (reasonable wear and tear excepted) and (b) not obsolete or in need in any material respect of renewal or replacement, except for renewal or replacement in the ordinary course of business.

 

3.19               Labor Matters. There is no, and there has not been during the past one (1) year, any dispute relating to the violation or alleged violation of any Applicable Law by any Group Company pertaining to labour relations or employment matters that may have a Material Adverse Effect on any Group Company, including any charge or complaint filed by an employee with any Governmental Authority or any Group Company. Each Group Company is in compliance with the Applicable Laws relating to its provision of any form of social insurance and housing fund (the “Social Insurance”), and has fully and timely paid all Social Insurance contributions required under the Applicable Laws for all of employees, except where the failure to be in compliance would not have a Material Adverse Effect and as disclosed in Section 3.19 of the Disclosure Schedule.

 

3.20               Changes Since the Statement Date. Since the Statement Date:

 

(i)                                     each Group Company’s business has been operated in the ordinary course as a going concern;

 

(ii)                                  there has been no Material Adverse Effect to any Group Company or the Group taken as a whole;

 

(iii)                               no material change has occurred in the assets and liabilities shown in the Financial Statements except for those occurred in the ordinary course of business of the Group; and

 

(iv)                              no Group Company has declared, paid or made a dividend or distribution except as provided in the Financial Statements.

 

3.21               Agreements.  To the knowledge of the Founder Parties, Haode Investment and Group Company Parties, no fact or circumstance exists which might invalidate or give rise to a ground for termination of any material agreement, arrangement or obligation to which any Group Company is a party.  No party with whom any Group Company has entered into any material agreement, arrangement or obligation has given notice of its intention to terminate such agreement, arrangement or obligation.  Neither a Group Company nor any party with whom any Group Company has entered into any agreement, arrangement or obligation is in material breach of such agreement, arrangement or obligation.  No Group Company is a party to, or is liable under, a long term, onerous or unusual agreement, arrangement or obligation including, without limitation an agreement, arrangement or obligation:

 

(i)                                     entered into other than in the ordinary course of its business; or

 

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(ii)                                  restricting any Group Company’s freedom to operate the whole or part of its business or to use any of its assets.

 

3.22               Real Property. None of the Group Companies owns any real property.

 

3.23               Foreign Exchange. Except as disclosed in Section 3.23 of the Disclosure Schedule, the Founder Parties, Haode Investment, the Angel Investor Parties and any PRC domestic resident who has any beneficial interest in the Company, Haode Investment or Angel Investor Parties or any offshore holding company which holds any beneficial interest in the Company has obtained all necessary approvals from and made all necessary filings and registrations with all Governmental Authorities in connection with the establishment or control of the Company or the relevant holding company (as the case may be).  No other approvals are required to be obtained from and no other filings or registrations are required to be made with SAFE to enable any Group Company in the PRC to remit dividends or other forms of profits outside of the PRC to the Company in a freely convertible foreign currency.

 

3.24               Related Party Agreements.  Except as disclosed in Section 3.24 of the Disclosure Schedule, there has not been any agreement or arrangement (legally enforceable or not) with an amount over RMB 5,000,000 between, on the one hand, any Group Company and, on the other hand, (a) any Founder Party, Haode Investment or Angel Investor Party, (b) any of the respective Affiliates of the Persons referred to in the foregoing clause (a), (c) any shareholder, director or manager of any Group Company, any Founder Party, Haode Investment, any Angel Investor Party or any of their Affiliates, or (d) any Person connected with any of the Persons referred to in the foregoing clauses (a) to (c) (including immediate family members).

 

3.25               Bankruptcy, Insolvency and Winding Up.  No proceedings have commenced or are pending for the bankruptcy, insolvency, winding up, liquidation or reorganisation of any Group Company. No Group Company is bankrupt or insolvent.  Each Group Company is able to pay its debts as they fall due and has sufficient assets to repay all of its debts.

 

3.26               Full Disclosure.  The Founder Parties, Haode Investment and the Company have provided the Investors with all the information that the Investors have requested for deciding whether to consummate the transactions contemplated under this Agreement.  None of the Transaction Documents or any other statements or certificates or other materials made or delivered, or to be made or delivered, to the Investors in connection herewith or therewith, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements herein or therein not misleading.  No representation or warranty by the Founder Parties, Haode Investment or the Group Company Parties in this Agreement and no information or materials provided to the Investors in connection with their due diligence investigation of any Group Company or the negotiation and execution of the Transaction Documents, taken as a whole, contains or will contain any untrue statement of a material fact or omits or will omit to state any material fact required to be stated therein or necessary in order to make the statement therein, in light of the circumstances in which they are made, not misleading.

 

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4.                                      Representations and Warranties of the Investors.

 

Each Investor, severally but not jointly, hereby represents and warrants to the Company that each of the following statements is true, complete and accurate with respect to itself, as the date of this Agreement and as of the Closing:

 

4.1                      Organization; Good Standing; Qualifications.  It is duly organized, validly existing and in good standing under the laws of the jurisdiction of its establishment.  It has all requisite power and authority to carry on its business as now conducted and as proposed to be conducted and is duly qualified to transact business in each jurisdiction in which it operates business and where the failure to so qualify would have a Material Adverse Effect.

 

4.2                      Authorization.  It has all requisite power and authority to execute and deliver each Transaction Document to which it is a party and to carry out and perform its obligations thereunder.  All actions on its part and its officers, directors and shareholders necessary for the authorization, execution and delivery of the Transaction Documents to which it is a party, the performance of all its obligations thereunder, has been taken or will be taken prior to the Closing.  Each Transaction Document to which it is a party has been duly executed and delivered by it, and constitutes its valid and legally binding obligation, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

4.3                     Legal Funds.  The Subscription Price paid by such Investor shall be funds legally available to it under Applicable Laws.

 

5.                                      Conditions of the Investors’ Obligation at the Closing.  The obligations of each Investor to complete the Closing are subject to the fulfillment of each of the following conditions, unless waived in writing by such Investor prior to the Closing:

 

5.1                      Representations and Warranties.  The representations and warranties of the Group Company Parties, Haode Investment and the Founder Parties contained in Section 3 which are qualified as to materiality shall be true, correct and complete, and each such representation and warranty that is not so qualified shall be true, correct and complete in all material respects, in each case on the date hereof and on the Closing Date as if made on and as of the Closing Date (except for such representations and warranties expressly stated herein to be made as of a specific date, which shall be true, correct and complete or true, correct and complete in all material respects (as the case may be) as of such date).

 

5.2                     Performance.  Each of the Parties other than the Investors shall have performed and complied in all material respects with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by them on or before the Closing.

 

5.3                     Qualifications.  Each of Parties hereto other than the Investors shall have obtained all authorizations, approvals, waivers or permits of any competent Governmental Authority or regulatory body that are required for the consummation of all of the transactions contemplated by the Transaction Documents, including, but not limited to, (i) all permits, authorizations, approvals, consents or permits of any Governmental Authority or regulatory body or any relevant third party,

 

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and (ii) the waiver by the existing shareholders of the Company of any pre-emptive rights and all similar rights in connection with the issuance of the Subscription Shares at the Closing.

 

5.4                     Due Diligence. Such Investor shall have completed its business, legal, financial due diligence investigation of the Group Companies to its satisfaction.

 

5.5                     Legal Opinions. Such Investor shall have received from the Company opinions of the PRC legal counsel of the Group Companies dated as of the Closing Date in the form attached as Exhibit D.

 

5.6                     No Material Adverse Effect.  There shall not have occurred prior to the Closing any event or transaction reasonably likely to result in a Material Adverse Effect.

 

5.7                     Investors’ Rights Agreement.  The requisite Parties shall have duly executed the Investors’ Rights Agreement in accordance to Section 22.7 of the Second Amended IRA and delivered to such Investor the Investors’ Rights Agreement in the form attached as Exhibit C.

 

6.                                      Conditions of the Company’s and Founder Parties’ Obligations at the Closing.  The obligations of the Company and Founder Parties with respect to any Investors under this Agreement at the Closing are subject to the fulfillment or the Company’s written waiver prior to the Closing of each of the flowing conditions:

 

6.1                     Representations and Warranties.  The representations and warranties of such Investor contained in Section 4 shall be true, correct and complete on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the Closing.

 

6.2                     Performance.  Such Investor shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by them on or before the Closing.

 

6.3                     Investors’ Rights Agreement.  Such Investor shall have duly executed and delivered to the Company the Investors’ Rights Agreement in the form attached as Exhibit C.

 

6.4                     Waiver of Conditions.

 

(i)                                     At any time on or before the Closing Date, an Investor may waive a condition set out in Section 5, with respect to itself only, by notice to the Company and the Founder Parties on any terms such Investor decides.

 

(ii)                                  At any time on or before the Closing Date, the Company may waive a condition set out in Section 6 with respect to an Investor by notice to such Investor on any terms it decides.

 

7.                                      Covenants.

 

7.1                Responsibility for Satisfaction of Conditions.  The Group Company Parties, Haode Investment and the Founder Parties shall make all reasonable efforts to achieve satisfaction of each condition set out in Section 5 as soon as possible and in any event not later than the Closing Date.

 

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From the date hereof, the Group Company Parties, Haode Investment and the Founder Parties shall timely inform the Investors of and discuss with the Investors the status of the Group Company Parties’, Haode Investment’s and the Founder Parties’ progress in fulfilling the closing conditions set forth in Section 5. If, at any time, any Group Company Party, Haode Investment, or Founder Party becomes aware of the satisfaction of any condition that it is responsible for the satisfaction or becomes aware of any fact or circumstance that might prevent any condition from being satisfied, it shall immediately inform the other Parties in writing.

 

7.2                     Further Assurances.  Each of the Group Company Parties, Haode Investment, and the Founder Parties agrees to from time to time execute and deliver, or cause to be executed and delivered, such additional or further consents, documents and other instruments as the Investors may reasonably request for the purpose of effectively carrying out the transactions contemplated by the Transaction Documents.  This covenant shall survive the Closing.

 

7.3                     Pre-Closing Undertakings.  Between the date of this Agreement and the Closing Date, each of the Group Company Parties, Haode Investment, and the Founder Parties jointly and severally undertakes to the Investors to procure that each Group Company shall operate its business in the ordinary course so as to maintain that business as a going concern, and not to take actions or engage in or commit to transactions that are extraordinary in nature or would reasonably be expected to negatively impact the interest of a potential investor at or after the Closing.

 

7.4                     Use of Funds. The proceeds received by the Company under this Agreement shall be used for the Group’s ordinary course of business and the satisfaction of the related capital expenditure and cash flow requirements.

 

7.5                     Post-Closing Undertaking of the Group Company Parties, Haode Investment and the Founder Parties. Each of the Group Company Parties, Haode Investment and the Founder Parties jointly and severally undertakes to the Investors that, such Party shall complete or cause relevant Persons to complete the following matters, within the timelines stated in this Section 7.5:

 

(i)                                     as soon as practicable after the Closing, each of the Group Companies (including branches thereof) shall obtain necessary permits and licenses necessary for the effective operation of its business, except that with respect to (a) the business license and (b) the food operation permit of a Group Company, a Party shall not be deemed to have breached this covenant as long as such Group Company uses its good faith and makes its reasonable efforts to obtain such license and permit in due course; and

 

(ii)                                  as soon as practicable after the Closing, the Group Companies shall use their best efforts to obtain the essential PRC trademarks that are necessary for the effective operation of its business.

 

7.6                     Xizang Trust. Each Investor hereby acknowledges and agrees that on the Closing, Taide Investment Management Ltd, an Affiliates of Xizang Trust, will exercise its warrant and subscribe for 15,211 Series B-1 Preferred Shares of the Company in accordance with the Xizang Trust Cooperation Memorandum. Schedule VI sets forth the capitalization table of the Company immediately after the Closing.

 

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8.             Confidentiality.

 

8.1     Disclosure of Terms.  The terms and conditions of this Agreement, all exhibits and schedules attached hereto and the transactions contemplated hereby (collectively, the “Financing Terms”), including their existence, shall be considered confidential information and shall not be disclosed by any Party to any third party without the prior written consent of all other Parties except in accordance with the provisions set forth below.

 

8.2       Permitted Disclosures.  Notwithstanding the foregoing, each of the Company and the Investors may disclose any of the Financing Terms to its general partners, limited partners, fund manager(s) and Affiliates and the current directors, employees, accountants and attorneys of the aforementioned parties, in each case only on an as-needed basis and where such Persons are under appropriate non-disclosure obligations.

 

8.3       Legally Compelled Disclosure.  In the event that any Party is requested or becomes legally compelled (including without limitation, pursuant to securities laws and regulations) to disclose the existence of this Agreement or content of any of the Financing Terms in contravention of the provisions of this Section 8, such Party (the “Disclosing Party”) shall, unless prohibited by law, provide the other Parties with prompt written notice of that fact and shall consult with the other Parties regarding such disclosure.  The Disclosing Party shall, to the extent possible and with the cooperation and reasonable efforts of the other Parties, seek a protective order, confidential treatment or other appropriate remedy.  In such event, the Disclosing Party shall furnish only that portion of the information which is legally required and shall exercise reasonable efforts to obtain reliable assurance that confidential treatment will be accorded such information. Notwithstanding anything to the contrary herein, the underlying investors in each of the BlackRock entities (the “Underlying Investors”) may disclose information regarding the Group (the Underlying Investor having received such information pursuant to Section 8 hereof) that it is required to disclose under applicable law or regulation.

 

8.4       Other Exceptions.  Notwithstanding any other provision of this Section 8, the confidentiality obligations of the Parties shall not apply to: (a) information which a restricted Party learns from a third party having the right to make the disclosure, provided the restricted Party complies with any restrictions imposed by the third party; (b) information which is in the restricted Party’s possession prior to the time of disclosure by the protected Party and not acquired by the restricted Party under a confidentiality obligation; (c) information which enters the public domain without breach of confidentiality by the restricted Party, or (d) in the case of an Investor, information required to be disclosed under securities laws or the rules of any stock exchange applicable to such Investor.

 

8.5       Press Releases.

 

(i)            None of the Group Company Parties, Haode Investment, and the Founder Parties shall, and they shall procure that no Group Company shall, issue any press release or make any public announcement with respect to this Agreement or the transactions contemplated hereby without the prior written consent of the Investors.  None of the Group Company Parties, Haode Investment, and the Founder Parties shall, and they shall procure that none of the Group Companies shall, issue a press release or make any public announcement or other public disclosure

 

23

 

with respect to any of the transactions contemplated herein, or use the name of an Investor or any of its Affiliates without obtaining in each instance the prior written consent of such Investor.

 

(ii)           No Investor shall issue any press release or make any public announcement with respect to this Agreement or the transactions contemplated hereby without the prior written consent of the Company.  No Investor shall issue a press release or make any public announcement or other public disclosure with respect to any of the transactions contemplated herein, or use the name of the Group Company Parties, Haode Investment, and the Founder Parties, or any of its respective Affiliates without obtaining in each instance the prior written consent of the Company.

 

8.6       Effectiveness.

 

(i)            Subject to Section 8.6(ii), the provisions of this Section 8 shall survive the termination of this Agreement and shall be in addition to, and not in substitution for, the provisions of any separate nondisclosure agreement executed by any of the Parties with respect to the transactions contemplated hereby.

 

(ii)           Sections 8.1 to 8.3 shall be terminated with respect to a Party upon its execution of the Investors’ Rights Agreement and superseded by the confidentiality obligations set out therein in Section 18 of the Investors’ Rights Agreement.

 

9.             Indemnification.

 

9.1     General. Without prejudice to any other right or remedy available, the Founder Parties, Haode Investment and the Group Company Parties (each, an “Indemnifying Party”) shall jointly and severally indemnify on an after Tax basis and hold the Investors, their Affiliates and their respective representatives, together with their respective successors and permitted assigns (each, an “Indemnified Party”), harmless from and against any and all Indemnifiable Loss resulting from, arising out of or relating to: (i) any breach of any representation or warranty of any Indemnifying Party contained in any Transaction Document (without regard to the materiality qualifiers contained therein), (ii) the nonperformance, partial or total, of any covenant of any Indemnifying Party contained in any Transaction Document, (iii) any failure by the VIE Entity to obtain or maintain the ICP License and (iv) the failure to execute and effect any Control Document pursuant to Section 7.5 or any breach or non-compliance with any Control Document by any party thereto.

 

9.2       Notice of Claims.  If an Indemnified Party makes any claim or demand against an Indemnifying Party for indemnification, the claim or demand shall be in writing and shall state in general terms the facts upon which the Indemnified Party makes the claim or demand.  If such notice is not given, it will not release any Indemnifying Party, in whole or in part, from its obligations under this Section 9, except to the extent that such Indemnifying Party’s ability to defend against claim or demand is materially and actually prejudiced thereby.

 

9.3       Survival.  The Fundamental Representations of the Founder Parties, Haode Investment and the Group Company Parties contained in the Transaction Documents shall survive the Closing indefinitely or until the latest date permitted by Law.  The covenants and agreements of the Parties hereto contained in this Agreement or in any certificate delivered pursuant hereto or in connection herewith shall survive the Closing indefinitely or for the shorter period explicitly

 

24

 

specified therein, provided that for such covenants and agreements that survive for such shorter period, claims for breaches thereof shall survive indefinitely or until the latest date permitted by Law.  Notwithstanding the foregoing, if notice of any claim or demand for indemnification shall have been given, such claim or demand shall survive the time at which it would otherwise terminate.

 

10.          Miscellaneous.

 

10.1     Investor’s Knowledge not a Defense.  Nothing disclosed by the Group Company Parties, Haode Investment or the Founder Parties to the Investors other than in the Disclosure Schedule shall constitute disclosure for the purposes of this Agreement. No other knowledge of an Investor or its advisers relating to any Group Company (actual, constructive or imputed) prevents or limits a claim made by such Investor for breach of Section 3 (Representations and Warranties of the Group Company Parties, Haode Investment and the Founder Parties).  The Group Company Parties, Haode Investment and the Founder Parties shall not invoke the knowledge of an Investor or its advisers (actual, constructive or imputed) of a fact or circumstance which might make any statement in Section 3 untrue or inaccurate as a defense to a claim for breach of Section 3.

 

10.2     Termination. This Agreement may be terminated, and the transactions contemplated hereby may be abandoned at any time:

 

(i)            by mutual agreement prior to Closing;

 

(ii)           upon written notice from an Investor with respect to itself only, a) in the event of a material breach of any Transaction Document by any of the Founder Parties, Haode Investment or Group Company Parties if such breach has not been cured within fifteen (15) Business Days following notification thereof prior to Closing, or b) in the event that the Closing has not been consummated by the Long Stop Date as a result of a Group Company Party’s failure to perform its obligations hereunder; or

 

(iii)          with respect to the agreements between an Investor and the Company, upon written notice from the Company with respect to such Investor only, a) in the event of a material breach of any Transaction Document by such Investor if such breach has not been cured within fifteen (15) Business Days following notification thereof prior to Closing, or b) in the event that the Closing has not been consummated by the Long Stop Date as a result of the Investor’s failure to perform its obligations hereunder.

 

If this Agreement is terminated pursuant to this Section 10.2, all further obligations of the relevant Parties under this Agreement shall terminate, except for those obligations which are intended, expressly or implicitly, to survive the termination of this Agreement, provided, however, that no such termination of this Agreement shall relieve any Party of any liability for breaches of this Agreement occurring prior to the date of termination.

 

10.3     Assignments and Transfers; Third Party Beneficiaries.  This Agreement and the rights and obligations of the Parties hereunder shall inure to the benefit of, and be binding upon, their respective successors, permitted assigns and legal representatives, but shall not otherwise be for the benefit of any third party.  The rights of any Investor hereunder shall be assignable (i) to an Affiliate of such Investor, or (ii) to any other assignee or transferee to whom such Investor transfers

 

25

 

Equity Securities, provided that such transferee agrees in writing to be bound by the terms of this Agreement by signing and delivering a joinder agreement in the form as set forth in Exhibit E (the “Joinder Agreement”).  This Agreement and the rights and obligations of any Party hereunder shall not otherwise be assigned without the mutual written consent of the other Parties.  Except as otherwise expressly provided in this Agreement, nothing expressed or referred to in this Agreement will be construed to give any Person other than the Parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement. For the avoidance of doubt, the terms of this Agreement are not intended to be enforceable by virtue of the Contracts (Rights of Third Parties) Ordinance (Chapter 623 of the Laws of Hong Kong) by any person who is not a Party to this Agreement.

 

10.4     Governing Law.  This Agreement shall be governed by and construed under the laws of Hong Kong without regard to principles of conflicts of law thereunder.

 

10.5     Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

10.6     Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not be considered in construing or interpreting this Agreement.

 

10.7     Notices.  Any and all notices required or permitted under this Agreement shall be given in writing in English and shall be provided by one or more of the following means and shall be deemed to have been duly given (a) if delivered personally, when received, (b) if transmitted by facsimile, on the date of transmission with receipt of a transmittal confirmation, (c) if transmitted by email, on the date of transmission, or (d) if by international courier service, on the fourth (4th) Business Day following the date of deposit with such courier service, or such earlier delivery date as may be confirmed in writing to the sender by such courier service.  Any notice given pursuant to this Section 10.7 shall be addressed to the address, facsimile number or email address of the receiving Party as set forth on Schedule III of this Agreement or at such other addresses as such Party may designate by ten (10) days advance written notice to the other Parties hereto.

 

10.8     Amendments and Waivers.  Except as otherwise provided in Section 6.4, any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only by a written instrument signed by the Company, the Investors and the Founder Parties.

 

10.9     Severability.  If one or more provisions of this Agreement are held to be unenforceable under any Applicable Law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

10.10  Remedies Not Exclusive.  Each Party’s rights and remedies contained in this Agreement are cumulative and not exclusive of other rights or remedies provided by law.

 

10.11  Entire Agreement.  This Agreement, the other Transaction Documents and the documents referred to herein and therein, together with all schedules and exhibits hereto and thereto, constitute the entire agreement among the Parties and no Party shall be liable or bound to any other

 

26

 

Party in any manner by any warranties, representations, or covenants except as specifically set forth herein or therein.

 

10.12  Tax and Expenses.

 

The Company shall pay all of its own costs, expenses, and Taxes incurred in connection with the transactions contemplated under this Agreement and the other Transaction Documents, and each Investor shall pay all of its own costs and expenses, and Taxes incurred in connection with the transactions contemplated under this Agreement and the other Transaction Documents.

 

10.13  Dispute Resolution.  Any dispute, controversy or difference between the Parties arising out of, in connection with or relating to, this Agreement (a “Dispute”) shall be resolved through arbitration pursuant to this Section 10.13.  The arbitration shall be conducted in Hong Kong by the Hong Kong International Arbitration Centre (the “HKIAC”) in accordance with the Hong Kong International Arbitration Centre Administered Arbitration Rules (the “HKIAC Rules”) in effect at the time of the arbitration. There shall be three arbitrators.  Each of the following: (i) the claimant to the Dispute, or in the case of multiple claimants, all such claimants acting collectively (the “Claimant”) and (ii) the respondent to the Dispute, or in the case of more than one respondent, the respondents acting collectively (the “Respondent”) shall select one arbitrator.  The party commencing the arbitration shall nominate his arbitrator at the time of filing the demand for arbitration.  The Respondent shall nominate his arbitrator within thirty (30) days after receiving the demand for arbitration.  Such arbitrators shall be freely selected, and neither the Claimant nor the Respondent shall be limited in their selection to any prescribed list.  The HKIAC shall select the third arbitrator.  Each arbitrator shall be qualified to practice law in Hong Kong.  If either party does not appoint an arbitrator within the time set forth above or if there are more than one Claimant or one Respondent and the Claimant (or Respondent as the case may be) fails to agree on the selection of the same arbitrator between themselves as provided above, the relevant appointment or selection shall be made by the HKIAC.  The arbitration proceedings shall be conducted in English.  If the HKIAC Rules are in conflict with the provisions of this Section 10.13 including the provisions concerning the appointment of arbitrators, the provisions of this Section 10.13 shall prevail.  The arbitration tribunal shall decide any Dispute submitted by the Parties to the arbitration strictly in accordance with the substantive law of the Hong Kong and shall not apply any other substantive law.  In making their award, the arbitrators shall have the authority to award attorney’s fees and other costs and expenses of the arbitration as they deem just and appropriate under the circumstances. The award of the arbitration tribunal shall be final and binding upon the disputing Parties, and any Party may apply to a court of competent jurisdiction for enforcement of such award.  A Party shall be entitled to seek preliminary injunctive relief, if possible, from any court of competent jurisdiction pending the constitution of the arbitral tribunal.

 

[The remainder of this page has been intentionally left blank.]

 

27

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Bel45   Private Opportunities Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
Bel45   Private Opportunities GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the Bel45 Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Tango Capital   Opportunities Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
Tango   Capital Opportunities GP, LLC, as general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the Tango Capital Opportunities   Series), its member manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
TSCL Private   Markets Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
TSCL   Private Markets GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the TSCL Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
NDSIB   Private Opportunities Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
NDSIB   Private Opportunities GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the NDSIB Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BlackRock   Private Opportunities Fund IV, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   POF IV (GP), LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the POF IV Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BR POF IV Cayman   Master Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   POF IV (GP), LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the POF IV Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
High   Rock Direct Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
High   Rock GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the High Rock Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BlackRock   MD Private Opportunities Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   MD Private Opportunities GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the MD Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
1885   Private Opportunities Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
1885   Private Opportunities Fund GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the 1885 Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
NHRS Private Opportunities Fund,   L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock NHRS GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry L.P. (solely on behalf   of the BR/NHRS Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration & Management   Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Sullivan Way   Private Opportunities Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
Sullivan   Way Private Opportunities GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the SW Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Coin   Private Opportunities, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Coin   Private Opportunities GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the Coin Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
POF   III Scottish Master, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   POF III (GP), LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry L.P. (solely on behalf of the POF III Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BlackRock Inverwood   Private Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Inverwood Private Opportunities GP,   LLC, its general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the Inverwood Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration & Management   Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
OV Private   Opportunities, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BR/OV GP,   LLC, as general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the BR/OV Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Red   River Direct Investment Fund III, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Red   River Private Equity III, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the Red River III Series), its   member manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BR/ERB   Co-Investment Fund II, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   Private Equity NM II, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the BR/ERB II Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BlackRock   MSV Private Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   MSV Private Opportunities GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the MSV Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Private Equity Partners VII   Master, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   Investment Management, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Private Equity   Partners VII US, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   Investment Management, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Total Alternatives   Fund — Private Equity LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Total   Alternatives Fund (GenPar) LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   ASG Master Carry, L.P. — TAF Series, its sole member
    
	
 
    	
By:
    	
BlackRock   Financial Management, Inc., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Total Alternatives   Fund — Private Equity (B) LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Total   Alternatives Fund (GenPar) LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   ASG Master Carry L.P. — TAF Series, its sole member
    
	
 
    	
By:
    	
BlackRock   Financial Management, Inc., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BlackRock Private   Opportunities Fund IV Master SCSp
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
POF   IV GP S.À.R.L.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Farris
    
	
 
    	
Name:
    	
Andrew   Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Darsana Master Fund LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Darsana Capital LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Chris Ferrante
    
	
 
    	
Name:
    	
Chris Ferrante
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Luckin Coffee Inc.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Zhiya Qian
    
	
 
    	
Name:
    	
Zhiya Qian
    
	
 
    	
Title :
    	
Director
    

 

Signature Page

Series B-1 SPA

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Luckin   Coffee Investment Inc.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Zhiya Qian
    
	
 
    	
Name:
    	
Zhiya   Qian
    
	
 
    	
Title   :
    	
Director
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Luckin   Coffee (Hong Kong) Limited
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Zhiya Qian
    
	
 
    	
Name:
    	
Zhiya   Qian
    
	
 
    	
Title   : 
    	
Director
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Beijing Luckin   Coffee Co., Ltd.
    
	
 
    	
 
    
	
 
    	
瑞幸咖啡(北京)有限公司
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Zhibin Zhu
    
	
 
    	
Name:
    	
Zhibin   Zhu
    
	
 
    	
Title   : 
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
Company Seal:
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Seal of Beijing Luckin Coffee Co., Ltd.
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
China Luckin   Coffee Co., Ltd.
    
	
 
    	
 
    
	
 
    	
瑞幸咖啡(中国)有限公司
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Zhiya Qian
    
	
 
    	
Name:
    	
Zhiya   Qian
    
	
 
    	
Title   : 
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
Company Seal:
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Seal of China   Luckin Coffee Co., Ltd.
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Tianjin Luckin   Coffee Co., Ltd.
    
	
 
    	
 
    
	
 
    	
瑞幸咖啡(天津)有限公司
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Zhiya Qian
    
	
 
    	
Name:
    	
Zhiya   Qian
    
	
 
    	
Title   : 
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
Company Seal:
    
	
 
    	
 
    
	
 
    	
/s/ Seal of Tianjin   Luckin Coffee Co., Ltd.
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Pingtan Luckin   Coffee E-Commerce Co., Ltd.
    
	
 
    	
 
    
	
 
    	
瑞幸咖啡电子商务(平潭)有限公司
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Zhiya Qian
    
	
 
    	
Name:
    	
Zhiya   Qian
    
	
 
    	
Title   : 
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
Company Seal:
    
	
 
    	
 
    
	
 
    	
/s/ Seal of Pingtan   Luckin Coffee E-Commerce Co., Ltd.
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Beijing Luckin   Coffee Technology Co., Ltd.
    
	
 
    	
 
    
	
 
    	
北京瑞吉咖啡技术有限公司
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Zhiya Qian
    
	
 
    	
Name:
    	
Zhiya   Qian
    
	
 
    	
Title   : 
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
Company Seal:
    
	
 
    	
 
    
	
 
    	
/s/ Seal of Beijing   Luckin Coffee Technology Co., Ltd.
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Zhiya Qian
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Signature:
    	
/s/ Zhiya Qian
    
	
 
    	
Zhiya Qian
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Summer Fame Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Zhiya Qian
    
	
 
    	
Name:
    	
Zhiya Qian
    
	
 
    	
Title : 
    	
Director
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Min Chen
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Signature: 
    	
/s/ Min Chen
    
	
 
    	
Min Chen
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
May Bliss Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Min Chen
    
	
 
    	
Name:
    	
Min Chen
    
	
 
    	
Title : 
    	
Director
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Haode Investment   Inc.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ GUO, Lichun
    
	
 
    	
Name:
    	
GUO, Lichun
    
	
 
    	
Title : 
    	
Director
    

 

Signature PageExhibit 10.8

 

Execution Version

 

THIRD AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

THIS THIRD AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of April 17, 2019, by and among:

 

1.              Luckin Coffee Inc., an exempted company organized under the laws of the Cayman Islands with its company number of [                 ] (the “Company”);

 

2.              Luckin Coffee Investment Inc., a company incorporated under the laws of the British Virgin Islands, with its company number of [                  ] (the “BVI Company”);

 

3.              Luckin Coffee (Hong Kong) Limited (瑞幸咖啡(香港)有限公司), a company incorporated under the laws of Hong Kong, with its company number of [                  ] (the “HK Company”);

 

4.              Beijing Luckin Coffee Co., Ltd. (瑞幸咖啡(北京)有限公司), a limited liability company incorporated under the laws of the PRC with its registered number of [                  ] (the “Beijing WFOE”);

 

5.              China Luckin Coffee Co., Ltd. (瑞幸咖啡(中国)有限公司), a limited liability company incorporated under the laws of the PRC with its registered number of [                  ] (the “Xiamen WFOE”);

 

6.              Tianjin Luckin Coffee Co., Ltd. (瑞幸咖啡(天津)有限公司), a limited liability company incorporated under the laws of the PRC with its registered number of [                  ] (the “Tianjin WFOE”);

 

7.              Pingtan Luckin Coffee E-Commerce Co., Ltd. (瑞幸咖啡电子商务(平潭)有限公司), a limited liability company incorporated under the laws of the PRC with its registered number of [                  ] (the “Pingtan WFOE”);

 

8.              Beijing Luckin Coffee Technology Co., Ltd. (北京瑞吉咖啡技术有限公司), a limited liability company incorporated under the laws of the PRC with its registered number of [                  ] (the “VIE Entity”, and together with the Company, the BVI Company, the HK Company, the Beijing WFOE, the Xiamen WFOE, the Tianjin WFOE and the Pingtan WFOE, the “Group Company Parties”);

 

9.              Zhiya Qian (钱治亚), a citizen of the PRC with identification number of [                  ] (the “Founder A”);

 

10.       Summer Fame Limited, a company incorporated under the laws of the British Virgin Islands, with its company number of [                  ] (the “Founder A Holdco”);

 

11.       Min Chen (陈敏), a citizen of the PRC with identification number of [                  ] (the “Founder B”, together with Founder A, collectively the “Founders” and each an “Founder”);

 

 

12.       May Bliss Limited, a company incorporated under the laws of the British Virgin Islands, with its company number of [                  ] (the “Founder B Holdco”, together with Founder A, Founder A Holdco, Founder B, the “Founder Parties”, each a “Founder Party”);

 

13.       Haode Investment Inc., a Company incorporated under the laws of the British Virgin Islands, with its company number of [                  ] (“Haode Investment”);

 

14.       Primus Investments Fund, L.P., a limited partnership incorporated under the laws of the Cayman Islands, with its company number of [                  ] (the “Angel Investor A”);

 

15.       Mayer Investments Fund, L.P., a limited partnership incorporated under the laws of the Cayman Islands, with its company number of [                  ] (the “Angel Investor B”);

 

16.       STAR GROVE GLOBAL LIMITED, a company incorporated under the laws of the British Virgin Islands, with its company number of [                  ] (the “Angel Investor C”, together with Angel Investor A and Angel Investor B are referred to herein collectively as the “Angel-1 Investor Parties” and each an “Angel-1 Investor Party”);

 

17.       Lucky Cup Holdings Limited, a company incorporated and existing under the laws of the Cayman Islands, with its company number of [                  ] (the “Series A Investor A” or “Lucky Cup”);

 

18.       Joy Capital II, L.P., a limited partnership incorporated and existing under the laws of Cayman Islands, with its company number of [                  ] (with respect to the Series A Preferred Shares held by it, the “Series A Investor B”, or with respect to the Series B Preferred Shares held by it, the “Series B Investor A”);

 

19.       Joy Luck Management Limited, a company incorporated and existing under the laws of Hong Kong, with its company number of [                  ] (with respect to the Series A Preferred Shares held by it, the “Series A Investor C”, or with respect to the Series B Preferred Shares held by it, the “Series B Investor C”);

 

20.       Galaxy Shine Limited, a company incorporated and existing under the laws of Hong Kong with its company number of [                  ] (with respect to the Series A Preferred Shares held by it, the “Series A Investor D”, or with respect to the Series B Preferred Shares held by it, the “Series B Investor G” or the “Additional Series B Investor”);

 

21.       Carob Investment Pte Ltd, a company incorporated and existing under the laws of Singapore with its company number of [                  ] (with respect to the Series A Preferred Shares held by it, the “Series A Investor E”, together with Series A Investor A, Series A Investor B, Series A Investor C, Series A Investor D and Haode Investment (with respect to the Series A Preferred Shares held by Haode Investment), the “Series A Investors”; or with respect to the Series B Preferred Shares held by it, the “Series B Investor F”);

 

22.       Honour Ample Limited, a company incorporated and existing under the laws of the British Virgin Islands, with its company number of [                  ] (the “Series B Investor B”);

 

2

 

23.       Fortunate Cup Holdings Limited, a company incorporated and existing under the laws of the Cayman Islands, with its company number of [                  ] (the “Series B Investor D” or “Fortunate Cup”);

 

24.       Blue Fortune Limited, a company incorporated and existing under the laws of the Cayman Islands, with its company number of [                  ] (the “Series B Investor E”, together with Series B Investor A, Series B Investor B, Series B Investor C, Series B Investor D, Series B Investor F and Series B Investor G, the “Series B Investors”);

 

25.       Darsana Master Fund LP, a company incorporated under the laws of the Cayman Islands, with its company number of [                  ] (the “Darsana Investor”)

 

26.       Bel45 Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

27.       Tango Capital Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

28.       TSCL Private Markets Fund, L.P., an exempted limited partnership formed under the laws of the Cayman Islands;

 

29.       NDSIB Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

30.       BlackRock Private Opportunities Fund IV, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

31.       BR POF IV Cayman Master Fund, L.P., an exempted limited partnership formed under the laws of the Cayman Islands;

 

32.       High Rock Direct Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

33.       BlackRock MD Private Opportunities Fund, L.P., an exempted limited partnership formed under the laws of the Cayman Islands;

 

34.       1885 Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

35.       NHRS Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

36.       Sullivan Way Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

37.       Coin Private Opportunities, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

3

 

38.       POF III Scottish Master, L.P., a limited partnership formed under the laws of Scotland, UK;

 

39.       BlackRock Inverwood Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

40.       OV Private Opportunities, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

41.       Red River Direct Investment Fund III, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

42.       BR/ERB Co-Investment Fund II, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

43.       BlackRock MSV Private Opportunities Fund, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

44.       Private Equity Partners VII Master, L.P., a limited partnership formed under the laws of Scotland, UK;

 

45.       Private Equity Partners VII US, L.P., a limited partnership formed under the laws of the State of Delaware, USA;

 

46.       Total Alternatives Fund — Private Equity LP, an exempted limited partnership formed under the laws of the Cayman Islands;

 

47.       Total Alternatives Fund — Private Equity (B) LP, an exempted limited partnership formed under the laws of the Cayman Islands;

 

48.       BlackRock Private Opportunities Fund IV Master SCSp, a société en commandite spéciale (special limited partnership) formed under the laws of Luxembourg (Party (26) through Party (48), collectively, the “BlackRock Investors” and each, a “BlackRock Investor”); and

 

49.       Taide Investment Management Ltd, a company incorporated under the laws of the British Virgin Islands, with its company number of [                  ] ( “Taide Investment”, and together with the Darsana Investor and the BlackRock Investors, the “Series B-1 Investors” and each, a “Series B-1 Investor” and the Series B- 1 Investors together with the Series A Investors and the Series B Investors, the “Investors”).

 

The Group Company Parties, the Founder Parties, Haode Investment, the Angel-1 Investor Parties and the Investors are referred to collectively herein as the “Parties”, and each individually as a “Party”.

 

RECITALS

 

WHEREAS, the Group Company Parties, the Founder Parties, Haode Investment, the Angel-1 Investor Parties and the Series A Investors entered into a Series A Preferred Share

 

4

 

Purchase Agreement (the “Series A SPA”), dated June 22, 2018, pursuant to which the Series A Investors acquired certain number of Series A Preferred Shares of the Company;

 

WHEREAS, an Investors’ Rights Agreement was entered into on June 29, 2018 by and among the Group Company Parties, the Founder Parties, Haode Investment, the Angel-1 Investor Parties and the Series A Investors (the “Original IRA”);

 

WHEREAS, the Group Company Parties, the Founder Parties, Haode Investment, Series B Investor A, Series B Investor B, Series B Investor C, Series B Investor D, Series B Investor E and Series B Investor F entered into a Series B Preferred Share Purchase Agreement (the “Series B SPA”), dated November 2, 2018, pursuant to which Series B Investor A, Series B Investor B, Series B Investor C, Series B Investor D, Series B Investor E and Series B Investor F acquired certain number of Series B Preferred Shares of the Company;

 

WHEREAS, an Amended and Restated Investors’ Rights Agreement was entered into on November 15, 2018 by and among the Group Company Parties, the Founder Parties, Haode Investment, the Angel-1 Investor Parties, the Series A Investors, Series B Investor A, Series B Investor B, Series B Investor C, Series B Investor D, Series B Investor E and Series B Investor F (the “Amended IRA”);

 

WHEREAS, the Group Company Parties, the Founder Parties, Haode Investment and Additional Series B Investor entered into an Additional Series B Preferred Share Purchase Agreement (the “Additional Series B SPA”), dated January 9, 2019, pursuant to which Additional Series B Investor acquired certain number of Series B Preferred Shares of the Company;

 

WHEREAS, a Second Amended and Restated Investors’ Rights Agreement was entered into on January 9, 2019 by and among the Group Company Parties, the Founder Parties, Haode Investment, the Angel-1 Investor Parties, the Series A Investors and the Series B Investors (the “Second Amended IRA”);

 

WHEREAS, on April 10, 2019, Xizang Trust Co., Ltd.(“Xizang Trust”) has issued a notice to the Company entitling Taide Investment, an Affiliate of Xizang Trust to subscribe for certain numbers of Shares of the Company as a result of exercising  the warrant which was entered into on June 28, 2018 by and among the Group Company Parties, the Founder Parties, Haode Investment and Xizang Trust (the “Exercise Notice”);

 

WHEREAS, the Group Company Parties, the Founder Parties, Haode Investment, the Darsana Investor and the BlackRock Investors entered into a Series B-1 Preferred Share Purchase Agreement (the “Series B-1 SPA”), dated April 12, 2019, pursuant to which Series B-1 Investors intended to acquire certain number of Series B-1 Preferred Shares of the Company;

 

WHEREAS, in connection with the consummation of the transactions contemplated by the Series B-1 SPA, the Parties enter into this Agreement for the governance, management and operations of the Group Companies and for their rights and obligations between and among the Company and its Shareholders.

 

WITNESSETH

 

5

 

In consideration of the premises set forth above and the mutual promises set forth in this Agreement, the Parties hereby agree as follows:

 

1.                                      Interpretation.

 

1.1                               Definitions.  The following terms used in this Agreement shall have the meanings set forth below.  Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings set forth in the Series B-1 SPA.

 

“Affiliate” means, with respect to any given Person, a Person that Controls, is Controlled by, or is under common Control with the given Person.

 

“Agent” means, with respect to an entity, any director, officer, employee or other representative of such Person; any Person for whose acts such entity may be vicariously liable; and any other Person that acts for or on behalf of, or provides services for or on behalf of, such entity, in each case, whilst acting in his capacity as such.

 

“Angel Shares” means the Angel-1 Shares and the Angel-2 Shares, collectively.

 

“Angel-1 Shares” means the Company’s angel-1 shares, with the rights and privileges as provided in the Memorandum and Articles.

 

“Angel-2 Shares” means the Company’s angel-2 shares, with the rights and privileges as provided in the Memorandum and Articles.

 

“Anti-Bribery Laws” means (i) to the extent applicable to any Group Company Parties or any of its Agents from time to time, the US Foreign Corrupt Practices Act 1977, as amended, and the United Kingdom Bribery Act 2010, and (ii) any anti-bribery and anti-corruption laws or regulations in the PRC and any other jurisdiction where any Group Company Parties is established, holds assets or operates, or in which its products are sold.

 

“Anti-Money Laundering Laws” means the financial recordkeeping and reporting requirements of the U.S. Currency and Foreign Transaction Reporting Act of 1970, as amended, the U.S. Money Laundering Control Act of 1986, as amended, all applicable PRC anti-money laundering laws, as amended, and all money laundering-related laws of other jurisdictions where any Party conducts business or owns assets, and any related or similar law issued, administered or enforced by any Governmental Authority.

 

“Applicable Laws” means, with respect to any Person, all applicable provisions of all (a) constitutions, treaties, statutes, laws (including the common law), codes, rules, regulations, ordinances or orders of any Governmental Authority, and (b) notices, orders, decisions, injunctions, judgments, awards and decrees of or agreements with any Governmental Authority.

 

“Board” or “Board of Directors” means the Board of Directors of the Company.

 

“Business Day” means any day other than a Saturday, Sunday or a day that the banks in PRC, Hong Kong, Singapore, the Cayman Islands or the British Virgin Islands are required by law or executive order to be closed.

 

6

 

“Closing” has the meaning set forth in Section 2 of the Series B-1 SPA.

 

“Closing Date” means, with respect to Darsana Investor and BlackRock Investors, the “Closing Date” as defined under the Series B-1 SPA; and with respect to Taide Investment, the date of the payment of the exercise price under the Exercise Notice.

 

“Control” of a given Person means the power or authority, whether exercised or not, to direct the business, management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, which power or authority shall conclusively be presumed to exist upon possession of beneficial ownership or power to direct the vote of more than 50% of the votes entitled to be cast at shareholder’s meetings of such Person or power to appoint a majority of the members of the board of directors of such Person; the terms “Controlling” and “Controlled” have meanings correlative to the foregoing.

 

“Conversion Price” means the Series A Conversion Price with respect to a Series A Preferred Share, the Series B Conversion Price with respect to a Series B Preferred Share and the Series B-1 Conversion Price with respect to a Series B-1 Preferred Share.

 

“Conversion Shares” means Ordinary Shares issuable upon conversion of the Preferred Shares and Angel Shares.

 

“Directors” means the directors for the time being of the Company, which, for the avoidance of doubt, shall not include any Observer, and a “Director” means any of the Directors.

 

“Equity Securities” means any Ordinary Shares and Ordinary Share Equivalents.

 

“Fully-Diluted Basis” means (i) as applied to the Company, the number of Ordinary Shares which would be outstanding if (a) all securities convertible into or exchangeable for Ordinary Shares held by all shareholders were converted or exchanged in full and (b) all securities exercisable for Ordinary Shares were exercised in full, including all Option Shares, and (ii) as applied to a particular Person, the number of Ordinary Shares which would be held by such Person if all securities convertible into, exchangeable for or exercisable for Ordinary Shares held by such Person were converted or exchanged or exercised in full.

 

“Governmental Authority” means any court, tribunal, arbitrator, authority, agency, commission, official or other instrumentality of the PRC, any foreign country or any domestic or foreign state, county, city or other political subdivision including without limitation MOFCOM, SAFE, SAIC and their respective local and provincial branches or departments.

 

“Group” means the Group Companies collectively.

 

“Group Company” means each of the Company and its Subsidiaries from time to time (Schedule I of the Series B-1 SPA sets forth all of the Company’s Subsidiaries as of the date of the Series B-1 SPA) and collectively, the “Group Companies”.

 

“Holders” means the Investors, together with any permitted transferees and assignees of the Investors (each a “Holder”).

 

7

 

“Hong Kong” means the Hong Kong Special Administrative Region of the PRC.

 

“IP Assets” has the meaning set forth in the Series B-1 SPA.

 

“IPO” means an initial public offering of the Company.

 

“Joy Capital” means, collectively, Joy Capital II, L.P., Joy Luck Management Limited and Honour Ample Limited, and their permitted assigns.

 

“Liquidation Event” means (a) any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, (b) a sale or other disposition of all or substantially all of the assets of the Company (for the avoidance of doubt, including the equity interest and assets of the Significant Group Companies, taken as a whole, when deciding whether the assets sold or disposed of constitute all or substantially all of the assets of the Company), or (c) any consolidation, amalgamation or merger of the Company or any other member of the Significant Group Companies, with or into any other Person, or any sale, exchange, transfer or other disposition, in one or a series of related transactions, of any of the outstanding share capital of the Company or any other member of the Significant Group Companies, to one Person or a group of Persons acting in concert, in each case resulting in a change of Control of the Company or the Significant Group Company.

 

“Memorandum and Articles” means the Fourth Amended and Restated Memorandum and Articles of Association of the Company, as may be amended from time to time.

 

“New Securities” means any Equity Securities of the Company whether now or hereafter authorized; provided that the term “New Securities” does not include:

 

(i)                                     Ordinary Shares, options or convertible securities issued as a dividend or distribution on the Preferred Shares and Angel Shares;

 

(ii)                                  Option Shares and any other securities issued or issuable under the Company’s employee stock option or similar share incentive plan to be adopted by the Board, if any;

 

(iii)                               any Equity Securities issued in connection with any share split, share dividend or other similar event in which all Shareholders are entitled to participate on a pro rata basis;

 

(iv)                              any Conversion Shares; or

 

(v)                                 any Shares on or pursuant to an IPO.

 

“Option Shares” means the Ordinary Shares transferred or transferable, issued or issuable under the Company’s employee stock option or similar share incentive plan to be adopted by the Board in accordance with this Agreement and the Memorandum and Articles, if any.

 

“Ordinary Shares” means the ordinary shares of the Company.

 

“Ordinary Share Equivalents” means securities exercisable or convertible into Ordinary Shares, including the Preferred Shares and Angel Shares.

 

8

 

“Person” means any individual, corporation, partnership, limited partnership, proprietorship, association, limited liability company, firm, branch, trust, estate or other enterprise or entity.

 

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

 

“Preferred Majority Consent” means the approval or consent of a matter by the holders of more than fifty percent (50%) of the Series A Preferred Shares, the Series B Preferred Shares and the Series B-1 Preferred Shares (voting together as a single class and on an as converted basis).

 

“Preferred Shares” means the Series A Preferred Shares, the Series B Preferred Shares and the Series B-1 Preferred Shares.

 

“Relative” of a Person means a husband, wife, father, mother, son, daughter, brother, sister, grandparent, grandchild, or spouse of such Person.

 

“RMB” means the legal currency of PRC.

 

“Series A Closing Date” means the “Closing Date” as defined under the Series A SPA, being June 29, 2018.

 

“Series A Holder(s)” means the holder(s) of Series A Preferred Shares.

 

“Series A Issue Price” means US$ 367.183 per share, subject to adjustment for share combination, split, subdivision or similar actions of the Company.

 

“Series A Preferred Shares” means the Company’s series A preferred shares.

 

“Series B Closing Date” means the “Closing Date” as defined under the Series B SPA, being November 15, 2018.

 

“Series B Holder(s)” means the holder(s) of Series B Preferred Shares.

 

“Series B Issue Price” means US$ 734.37 per share, subject to adjustment for share combination, split, subdivision or similar actions of the Company.

 

“Series B Preferred Shares” means the Company’s series B preferred shares.

 

“Series B-1 Closing Date” means, with respect to Darsana Investor and BlackRock Investors, the “Closing Date” as defined under the Series B-1 SPA; and with respect to Taide Investment, the date of the payment of the exercise price under the Exercise Notice.

 

“Series B-1 Holder(s)” means the holder(s) of Series B-1 Preferred Shares.

 

“Series B-1 Issue Price” means US$ 865.91 per share with respect to the Darsana Investor and the BlackRock Investors, subject to adjustment for share combination, split, subdivision or

 

9

 

similar actions of the Company, and US$ 587.49 per share with respect to Taide Investment, subject to adjustment for share combination, split, subdivision or similar actions of the Company.

 

“Series B-1 Preferred Shares” means the Company’s series B-1 preferred shares.

 

“Shareholders” means (i) the Founder Parties, (ii) Haode Investment, (iii) the Angel-1 Investor Parties, (iv) the Investors and (v) any other Person who becomes a shareholder of the Company in accordance with the terms of this Agreement and becomes a party to this Agreement, in each case for so long as such Person remains a shareholder of the Company, and in the case of any Shareholder that is a natural person shall be deemed to include the estate of such Shareholder and the executor, conservator, committee or other similar legal representative of such Shareholder or such Shareholder’s estate following the death or incapacitation of such Shareholder.

 

“Shares” means the Preferred Shares, the Ordinary Shares and the Angel Shares.

 

“Significant Group Company” means, the Group Company with its revenue exceeding fifty percent (50%) of the total revenue of the Group in the relevant financial year; and “Significant Group Companies” mean, collectively, the Group Company Parties and each Significant Group Company.

 

“Simple Majority” means more than 50%.

 

“Subsidiary” means, with respect to any Person (other than a natural person), any other Person directly or indirectly Controlled by such first-mentioned Person.

 

“Transaction Documents” means, collectively, this Agreement, the Series B SPA, the Additional Series B SPA, the Series B-1 SPA, the Memorandum and Articles and any other document or agreement in connection with the transactions contemplated herein or therein.

 

“United States” or “United States of America” means the United States of America.

 

“US$” means the legal currency of the United States of America.

 

1.2                               Terms Defined Elsewhere in this Agreement.  The following terms are defined in this Agreement as follows:

 

	
“Additional   Series B Investor”
    	
 
    	
Preamble
    
	
“Agreement”
    	
 
    	
Preamble
    
	
“Angel Investor A”
    	
 
    	
Preamble
    
	
“Angel Investor B”
    	
 
    	
Preamble
    
	
“Angel Investor C”
    	
 
    	
Preamble
    
	
“Angel-1 Investor Parties”
    	
 
    	
Preamble
    
	
“Beijing WFOE”
    	
 
    	
Preamble
    
	
“BlackRock Investors”
    	
 
    	
Preamble
    
	
“BVI Company”
    	
 
    	
Preamble
    
	
“CFC”
    	
 
    	
Section 9.1
    
	
“Claimant”
    	
 
    	
Section 22.11
    
	
“Coffee Zero”
    	
 
    	
Section 7.2
    

 

10

 

	
“Code”
    	
 
    	
Section 9.1
    
	
“Competitor”
    	
 
    	
Section 4.1
    
	
“Co-Sale Notice”
    	
 
    	
Section 4.2
    
	
“Co-Sale Period”
    	
 
    	
Section 4.2
    
	
“Company”
    	
 
    	
Preamble
    
	
“Confidential Information”
    	
 
    	
Section 18.1
    
	
“Darsana Investor”
    	
 
    	
Preamble
    
	
“Dispute”
    	
 
    	
Section 22.11
    
	
“Founder”
    	
 
    	
Preamble
    
	
“Founder Parties”
    	
 
    	
Preamble
    
	
“Group Company Parties”
    	
 
    	
Preamble
    
	
“Haode Investment”
    	
 
    	
Preamble
    
	
“HK Company”
    	
 
    	
Preamble
    
	
“HKIAC”
    	
 
    	
Section 22.11
    
	
“HKIAC Rules”
    	
 
    	
Section 22.11
    
	
“Investors”
    	
 
    	
Preamble
    
	
“New Issuance Notice”
    	
 
    	
Section 5.1
    
	
“Observer”
    	
 
    	
Section 3.2(b)
    
	
“Offeree”
    	
 
    	
Section 4.2
    
	
“Offered Shares”
    	
 
    	
Section 4.2
    
	
“Ordinary Directors”
    	
 
    	
Section 3.2(b)(i)
    
	
“Oversubscription   Acceptance Notice”
    	
 
    	
Section 5.1
    
	
“Oversubscription Notice”
    	
 
    	
Section 5.1
    
	
“Oversubscription   Pre-emption Shares”
    	
 
    	
Section 5.1
    
	
“Party” or “Parties”
    	
 
    	
Preamble
    
	
“Permitted Transferees”
    	
 
    	
Section 4.1(d)(ii)
    
	
“PFIC”
    	
 
    	
Section 9.2
    
	
“Pingtan WFOE”
    	
 
    	
Preamble
    
	
“Pre-emption Acceptance   Notice”
    	
 
    	
Section 5.1
    
	
“Pre-emption Electing   Holder”
    	
 
    	
Section 5.1
    
	
“Pre-emption Period”
    	
 
    	
Section 5.1
    
	
“Pre-emption Right”
    	
 
    	
Section 5.1
    
	
“Redemption Completion   Date”
    	
 
    	
Section 10.4
    
	
“Redemption Price”
    	
 
    	
Section 10.3
    
	
“Redemption Shares”
    	
 
    	
Section 10.4
    
	
“Registration Rights”
    	
 
    	
Section 17.2
    
	
“Restricted Business”
    	
 
    	
Section 7
    
	
“Representatives”
    	
 
    	
Section 18.1
    
	
“Respondent”
    	
 
    	
Section 22.11
    
	
“Right of Co-Sale”
    	
 
    	
Section 4.2
    
	
“Series A Investor A”
    	
 
    	
Preamble
    
	
“Series A Investor B”
    	
 
    	
Preamble
    
	
“Series A Investor C”
    	
 
    	
Preamble
    

 

11

 

	
“Series A Investor D”
    	
 
    	
Preamble
    
	
“Series A Investor   Director”
    	
 
    	
Section 3.2(b)(i)
    
	
“Series A Investor E”
    	
 
    	
Preamble
    
	
“Series A Investors”
    	
 
    	
Preamble
    
	
“Series A Preference   Amount”
    	
 
    	
Section 11(c)
    
	
“Series A Redemption   Event”
    	
 
    	
Section 10.1
    
	
“Series A Redemption   Price”
    	
 
    	
Section 10.1
    
	
“Series A SPA”
    	
 
    	
Recitals
    
	
“Series B Investor A”
    	
 
    	
Preamble
    
	
“Series B Investor B”
    	
 
    	
Preamble
    
	
“Series B Investor C”
    	
 
    	
Preamble
    
	
“Series B Investor D”
    	
 
    	
Preamble
    
	
“Series B Investor   Director”
    	
 
    	
Section 3.2(b)(i)
    
	
“Series B Investor E”
    	
 
    	
Preamble
    
	
“Series B Investor F”
    	
 
    	
Preamble
    
	
“Series B Investor G”
    	
 
    	
Preamble
    
	
“Series B Investors”
    	
 
    	
Preamble
    
	
“Series B Preference   Amount”
    	
 
    	
Section 11(b)
    
	
“Series B Redemption   Event”
    	
 
    	
Section 10.2
    
	
“Series B Redemption Price”
    	
 
    	
Section 10.2
    
	
“Series B SPA”
    	
 
    	
Recitals
    
	
“Series B-1   Investors”
    	
 
    	
Preamble
    
	
“Series B-1   Preference Amount”
    	
 
    	
Section 11(a)
    
	
“Series B-1   Redemption Event”
    	
 
    	
Section 10.3
    
	
“Series B-1 Redemption Price”
    	
 
    	
Section 10.3
    
	
“Series B-1 SPA”
    	
 
    	
Recitals
    
	
“Shareholders’ Meeting”
    	
 
    	
Section 3.1(a)
    
	
“Selling Shareholder”
    	
 
    	
Section 4.2(a)
    
	
“Tianjin WFOE”
    	
 
    	
Preamble
    
	
“Transfer”
    	
 
    	
Section 4.1(a)
    
	
“Transfer Notice”
    	
 
    	
Section 4.2
    
	
“Transfer Price”
    	
 
    	
Section 4.2
    
	
“Transferor”
    	
 
    	
Section 4.2
    
	
“VIE Entity”
    	
 
    	
Preamble
    
	
“Xiamen WFOE”
    	
 
    	
Preamble
    

 

1.3                               Interpretation.

 

(a)                                 Directly or Indirectly.  The phrase “directly or indirectly” means directly, or indirectly through one or more intermediate Persons or through contractual or other arrangements, and “direct or indirect” has the correlative meaning.

 

(b)                                 Gender and Number.  Unless the context otherwise requires, all words (whether gender-specific or gender neutral) shall be deemed to include each of the masculine, feminine and neuter genders, and words importing the singular include the plural and vice versa,

 

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(c)           Headings.  Headings are included for convenience only and shall not affect the construction of any provision of this Agreement.

 

(d)           Include not Limiting.  “Include,” “including,” “are inclusive of” and similar expressions are not expressions of limitation and shall be construed as if followed by the words “without limitation.”

 

(e)           Law.  References to “law” shall include all applicable laws, regulations, rules and orders of any Governmental Authority, securities exchange or other self-regulating body, any common or customary law, constitution, code, ordinance, statute or other legislative measure and any regulation, rule, treaty, order, decree or judgment and “lawful” shall be construed accordingly.

 

(f)            References to Documents.  A reference to any Section is, unless otherwise specified, to such Section of this Agreement.  The words “hereof,” “hereunder” and “hereto,” and words of like import, unless the context requires otherwise, refer to this Agreement as a whole and not to any particular Section hereof.  A reference to any document (including this Agreement) is to that document as amended, consolidated, supplemented, novated or replaced from time to time.

 

(g)           Time.  If a period of time is specified and dates from a given day or the day of a given act or event, such period shall be calculated exclusive of that duty.

 

(h)           Writing.  References to writing and written include any mode of reproducing words in a legible and non-transitory form including emails and faxes.

 

(i)            Language.  This Agreement is drawn up in the English language.  If this Agreement is translated into any language other than English, the English language text shall prevail.

 

(j)            Currency.  Any thresholds or limits denominated in one currency shall also mean an equivalent value denominated in any other applicable currency, unless otherwise specified.

 

(k)           Reference to Parties.  A reference to a Party, unless the context otherwise requires, includes a reference to that Party’s legal personal representatives, successors and permitted assigns.

 

2.                                      Information Rights.

 

2.1          Delivery of Information.

 

(a)           The Company shall, and the Founder Parties and Haode Investment shall cause the Company to, deliver to each Holder the following documents or reports relating to the Group in English or Chinese and in a form acceptable to the Holders and the Company:

 

(i)            within seventy five (75) days after the end of each fiscal year of the Company, a consolidated unaudited income statement and statement of cash flows for such fiscal year and a consolidated balance sheet as of the end of such fiscal year;

 

13

 

(ii)           within forty five (45) days after the end of each fiscal quarter of the Company, an operation report of the Company for such fiscal quarter, a consolidated unaudited income statement and statement cash flows for such fiscal quarter and a consolidated unaudited balance sheet as of the end of such fiscal quarter;

 

(iii)          before the beginning of each financial year, a proposed annual budget and business plan of the Group for such financial year.

 

2.2          Material Events. The Company shall, and the Founders Parties shall procure that the Company will, promptly notify the Holders of:

 

(i)            any actual or prospective material adverse change in the business, operations, financial position or prospects of the Group Company Parties;

 

(ii)           any actual, pending or threatened investigation, enquiry or disciplinary proceeding by any Governmental Authorities that the Company considers may have a material effect on the Group;

 

(iii)          any material violation of Applicable Laws by any Group Company Parties; or

 

(iv)          any matters that may materially and adversely affect the performance by the Founders or the Group Company Parties of its obligations under any of the Transaction Documents.

 

2.3          Inspection Right.  The Company further covenants and agrees that, with prior approval of the Company, for so long as any Holder holds any Preferred Shares or Conversion Shares, such Holder shall have the right to inspect facilities, records and books of the Group Company Parties at any time during regular working hours and the right to discuss the business, operation and conditions of the Group Company Parties with their respective directors, officers, employees, accountants, legal counsel and investment bankers. The Company shall not withhold its approval without reasonable ground.

 

2.4          Termination of Information Rights.  The rights and covenants set forth in this Section 2 shall terminate and be of no further force or effect upon the earlier of: (a) the closing of an IPO, and (b) termination of this Agreement in accordance with Section 21.

 

3.                                      Corporate Governance.

 

3.1          General.

 

(a)           From and after the date hereof, each Shareholder shall vote its Shares at any regular or special meeting of Shareholders (a “Shareholders’ Meeting”), and shall take all other actions necessary, to give effect to the provisions of this Agreement, each other Transaction Document and the Memorandum and Articles.

 

(b)           In the event that the provisions of this Agreement conflict with any provision of the Memorandum and Articles, the provisions of this Agreement shall prevail as

 

14

 

among the Parties, who hereby undertake to take such steps as may be necessary or desirable to amend the Memorandum and Articles to remove such conflict to the fullest extent provided by law.

 

3.2          Board of Directors.

 

(a)           Number and Composition.  The number of Directors constituting the entire Board shall be six (6) following the Closing.

 

(b)           Appointment of Directors and Observer.

 

(i)            Joy Capital shall have the right in its sole discretion to appoint one (1) Director to the Board (the “Series B Investor Director”).  Lucky Cup shall have the right in its sole discretion to appoint one (1) Director to the Board (the “Series A Investor Director”). Angel-1 Investor Parties shall have the right in their sole discretion to jointly appoint one (1) Director to the Board (the “Angel Investor Director”). Haode Investment shall have the right in its sole discretion to appoint one (1) Director to the Board (the “Haode Director”), who shall be the Chairman of the Board. The Founders shall have the right in their sole discretion to appoint two (2) Directors to the Board (the Directors appointed by the Founders, collectively, the “Ordinary Directors”).  BlackRock Investors shall have the right in its sole discretion to appoint one (1) observer who shall have rights to attend all meetings of the Board in a non-voting capacity (the “Observer”). The Founders, Haode Investment, the Angel-1 Investor Parties, Lucky Cup, Joy Capital and BlackRock Investors shall have the sole right to remove their respective Director or the Observer so appointed pursuant to the foregoing and to reappoint successor of such Director or the Observer.  To the extent required by Applicable Law, the Shareholders shall vote the Shares owned by them to elect the Series B Investor Director, Series A Investor Director, Haode Director, the Angel Investor Director, the Ordinary Directors and the Observer.  If there is a vacancy in the membership of the Board of Directors or the Observer at any time, whether due to death, resignation, removal or some other cause, the Shareholders shall cause that vacancy to be filled by a person selected by the Party or Parties that originally nominated or appointed the predecessor Director or Observer.

 

(c)           Removal and Replacement of Directors and Observer.

 

(i)            A Director or the Observer shall be removed from the Board, with or without cause, upon, and only upon, the affirmative vote of the Shareholders in accordance with this Section 3.2(c)(i).  Each Shareholder shall vote its Shares for the removal of a Director or the Observer upon the request of the Shareholder(s) that nominated or appointed such Director or the Observer pursuant to Section 3.2(b).  Otherwise, no Shareholder shall vote for the removal of a Director or the Observer.

 

(ii)           In the event any Director or the Observer resigns or is removed in accordance with Section 3.2(c)(i), the Shareholder(s) that appointed such Director or the Observer will have the right to appoint such Director’s or the Observer’s successor or replacement, and such successor or replacement Director or Observer shall be nominated and elected on or as soon as practicable after the date of such resignation or removal.

 

15

 

(d)           The Parties agree to take all necessary actions to effectuate the change of Board aforementioned including but not limited to amend and revise the Memorandum and Articles.

 

3.3          Board Meetings.

 

(a)           Frequency.  Meetings of the Board and of the boards of directors of each respective Subsidiary shall take place contemporaneously at least once every year or at such other frequency as agreed by the Board.

 

(b)           Notice.  A meeting may be called by any Director giving notice in writing to the other Directors and the Observer specifying the date, time and agenda for such meeting.  Not less than three (3) days’ notice shall be given to all Directors and the Observer; provided, however, that such notice period (i) shall not apply in the case of an adjourned meeting pursuant to Section 3.3(c), and (ii) may be reduced with the written consent of all of the Directors.

 

(c)           Quorum.  All meetings of the Board shall require a quorum of at least four (4) Directors. If such a quorum is not present within one hour from the time appointed for the meeting, the meeting shall adjourn to the same place and time seven (7) days later and, if at such adjourned meeting, such quorum is still not present, those Directors present shall be deemed a quorum and may transact the business for which the adjourned meeting was originally convened. No business shall be transacted at any Board meeting or by the Directors unless a quorum is present.

 

(d)           Voting.  At any Board meeting, each Director may exercise one vote.  Any Director may, by written notice to the Company Secretary, authorize another Director to attend and vote by proxy for such Director at any Board meeting.  The adoption of any resolution of the Board shall require the affirmative vote of a Simple Majority of the Directors present at a duly constituted meeting of the Board.  The Board shall not at any meeting adopt any resolution covering any matter that is not specified in the agenda for such meeting unless all Directors are present at such meeting and vote in favor of such resolution.

 

(e)           Telephonic Participation.  Directors and the Observer may participate in Board meetings by way of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other and such participation shall constitute presence for purposes of the quorum provisions of Section 3.3(c).

 

(f)            Expenses.  The Company shall reimburse the Directors for their reasonable costs of attendance at Board meetings.

 

(g)           Action by Written Consent.  Any action that may be taken by the Directors at a meeting may be taken by a written resolution signed by all of the Directors.

 

3.4          Protective Provisions.

 

(a)           In addition to any other vote or consent required in this Agreement or the Memorandum and Articles or by the Applicable Laws, and unless otherwise provided in the Transaction Documents, the Founder Parties and the Company shall ensure that the Company

 

16

 

and/or the Group Companies (as the case may be) shall not take any of the following actions without the prior approval of the Simple Majority of Directors of the Company with respect to such matters as follows:

 

(i)            the liquidation, dissolution or winding up or merger of the Company with or into any other Person or the occurrence of a Liquidation Event;

 

(ii)           any increase or decrease of the share capital or registered capital of the Company or the issue of options or other securities convertible or exchangeable for the share capital or registered capital of the Company, other than the redemption or repurchase of the Preferred Shares in accordance with their terms and Section 10;

 

(iii)          approve, permit or cause the Company to effect any merger with any Person, or be acquired by any Person;

 

(iv)          any provision of any guarantee or Lien over the assets of the Company, other than the guarantee provided for the purpose of the daily operation of the Company;

 

(v)           appointment, removal and replacement of the CEO and CFO of any Group Company;

 

(vi)          any appointment or change in the auditors of the Company, and

 

(vii)         sale, transfer or otherwise dispose of all or substantially all of the assets of the Company (for the avoidance of doubt, including the equity interest and assets of the Significant Group Companies, taken as a whole, when deciding whether the assets sold or disposed of constitute all or substantially all of the assets of the Company).

 

(b)           In addition to any other vote or consent required in this Agreement or the Memorandum and Articles or by the Applicable Laws, and unless otherwise provided in the Transaction Documents, the Founder Parties, Haode Investment and the Company shall ensure that the Company and/or the Group Companies (as the case may be) shall not take any of the following actions without the prior approval of the Holders holding more than 60% of the Preferred Shares (for the avoidance of doubt, various classes of Preferred Shares are voting together as a single class and on an as converted basis) with respect to such matters as follows:

 

(i)            any amendment or change of the rights, preferences, privileges or powers of, or the restrictions provided for the benefit of any Preferred Shares or any holders of the Preferred Shares, provided that, prior approval of the Holders holding more than 60% of each class of Preferred Shares shall be obtained with respect to any amendment or change of the rights, preferences, privileges or powers of, or the restrictions provided for the benefit of such class of Preferred Shares;

 

(ii)           to declare, issue, make, or pay any dividend or other distribution on any Equity Securities of the Company; approve, amend or alter any policy concerning any dividend or other distribution on any Equity Securities of the Company;

 

(iii)          change of the principal business of the Group;

 

17

 

(iv)          any redemption or repurchase of the Shares, Option Shares or other Equity Securities by the Company, other than the redemption or repurchase of the Preferred Shares in accordance with their terms and Section 10;

 

(v)           licensing or otherwise transfer of the core trademarks of the Group to a third party; and

 

(vi)          any entry into, amendment to or termination of any Control Documents.

 

4.                                      Prohibition on Transfer of Shares and Right of Co-Sale.

 

4.1          Prohibition on Transfer of Shares.

 

(a)           Each Founder Party’s Ordinary Shares and Haode Investment’s Angel-2 Shares.  Notwithstanding the other terms of this Agreement, until an IPO, no Founder Party or Haode Investment shall directly or indirectly sell, assign, transfer, pledge hypothecate, or otherwise encumber or dispose of in any way (the “Transfer”) all or any part of any interest in the Equity Securities now or hereafter beneficially owned or held by it/him/her, except with the prior Preferred Majority Consent in writing and in accordance with this Section 4; provided however that, in the event a Founder Party or Haode Investment pledges or creates security interest over all or any part of any interest in the Equity Securities now or hereafter beneficially owned or held by it/him/her to any financial institution(s) for the purpose of securing any debt financing provided by such financial institution(s) to the Company in connection with the business of the Company, then such pledge or creation of security interest shall not require the prior Preferred Majority Consent or in any way be subject to this Section 4.1(a).

 

(b)           Investor Shares.  Notwithstanding the other terms of this Agreement, until an IPO, no Investor or its Affiliates shall Transfer all or any part of any interest in the Equity Securities now or hereafter beneficially owned or held by it/him/her to any Competitor of the Company, except with the prior written consent of the Company and in accordance with this Section 4. For the purpose of this Section 4.1(b) and Section 7.2, a “Competitor” of the Company shall mean a company that have legally used any trademark as set forth in EXHIBIT B in its business, which may be updated by the Company quarterly, provided that any trademark added to EXHIBIT B must, in the good faith and reasonable determination of the Company, be used by a company whose main business in the PRC relates to coffee product and directly competes with the business of the Group in the PRC. In the case of any Transfer of Equity Securities by an Investor, the relevant transferee may be assigned the rights and become bound by the obligations arising from this Agreement as an Investor and/or Shareholder (as applicable) by executing a deed in the form of EXHIBIT A attached hereto and furnishing it to the Company and the other Investors.

 

(c)           Prohibited Transfers Void.  Any Transfer of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.

 

(d)           Permitted Transfers.  Notwithstanding the foregoing, the provisions of this Section 4.1 and Section 4.2 shall not apply to the following:

 

18

 

(i)            any Transfer by the Founder of the beneficial interests in any Ordinary Shares or any Transfer by Haode Investment of the beneficial interests in any Angel-2 Shares to the Affiliate or Relatives or to trusts for the benefit of such foregoing Persons;

 

(ii)           any Transfer by the Founder or Haode Investment to any of its Affiliates, Relatives or entities Controlled by such Affiliates or Relatives; and

 

(iii)          any Transfer of Ordinary Shares by a Founder Party and/or Angel-2 Shares by Haode Investment in a single transaction does not exceed 0.5% of the Company’s outstanding shares as of the date of this Agreement (on a Fully-Diluted Basis) and does not, cumulatively together with all prior Transfers of Shares by the Founder Parties and Haode Investment in the twelve (12)-month period immediately prior to such Transfer, exceed in aggregate 3% of the Company’s total outstanding shares as of the date of this Agreement (on a Fully-diluted Basis), (transferees pursuant to clauses (i), (ii) and (iii), collectively, the “Permitted Transferees”)

 

provided that (A) the Founder and Haode Investment shall inform the Investors each such transfer prior to effecting it and (B) in the case of any Transfer effected under this Section 4.1(d), the transferee shall furnish the Investors with a deed in the form of EXHIBIT A attached hereto, confirming to the other Shareholders that it shall be bound by and comply with all provisions of this Agreement as a Shareholder.

 

4.2          Right of Co-Sale.

 

(a)           Subject to the above Section 4.1, if at any time a Founder Party or Haode Investment (the “Transferor”) proposes to Transfer any Equity Securities that are beneficially owned or held by the Transferor to any Person other than a Permitted Transferee, pursuant to a bona fide offer received from such third party (the “Proposed Transferee”), the Transferor shall promptly send a written notice (the “Transfer Notice”) to each Holder (each an “Offeree”) stating (i) the number of Shares proposed to be Transferred (the “Offered Shares”); (ii) the proposed purchase price per Share (the “Transfer Price”) in US$ in respect of such Transfer; (iii) the material terms and conditions of such Transfer.  Each Holder shall have the right (but not the obligation) (the “Right of Co-Sale”) to participate in such Transfer and transfer simultaneously with the Transferor to the Proposed Transferee its Equity Securities in accordance with this Section 4.2.The Offeree may exercise its right (such exercising Offeree, the “Selling Shareholder”) under this Section 4.2 by providing a written notice (the “Co-Sale Notice”) to the Transferor within ten (10) Business Days after receipt of the Transfer Notice (the “Co-Sale Period”), and such notice delivered to the Transferor shall indicate the number of Equity Securities such Selling Shareholder wishes to sell by exercising its right under this Section 4.2.

 

(b)           To the extent one (1) or more of the Holders exercise the Right of Co-sale in accordance with the terms and conditions set forth below, the number of Equity Securities that the Transferor may sell in the Transfer shall be correspondingly reduced.

 

(c)           Each Selling Shareholder may elect to sell up to such number of Equity Securities equal to (on a Fully-Diluted Basis) the product obtained by multiplying (i) the aggregate number of the Offered Shares being transferred by (ii) a fraction, the numerator of which is the

 

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number of Equity Securities held by the Selling Shareholders on the date of the Transfer Notice, and the denominator of which is the total number of Equity Securities held by the Transferor and all Selling Shareholders on the date of the Transfer Notice, provided that if as a result of the proposed Transfer, the Founder Parties, Haode Investment and the Angel-1 Investor Parties would collectively lose Control over the Company, each Offeree may elect to sell up to all of the Equity Securities then held by such Offeree.

 

(d)           Each Selling Shareholder shall effect its participation in the sale by promptly delivering to the Transferor for transfer to the prospective purchaser one (1) or more certificates, properly endorsed for transfer, which represent the type and number of Equity Securities which such Selling Shareholder elects to sell; provided, however that if the prospective third-party purchaser objects to the delivery of Equity Securities in lieu of Ordinary Shares, such Selling Shareholder shall convert such Equity Securities into Ordinary Shares and deliver certificates corresponding to such Ordinary Shares.  The Company agrees to make any such conversion concurrent with the actual transfer of such shares to the purchaser and contingent on such transfer.

 

(e)           The share certificate or certificates that a Selling Shareholder delivers to the Transferor pursuant to Section 4.2(d) shall be delivered to the Proposed Transferee in consummation of the sale of Equity Securities pursuant to the terms and conditions specified in the Transfer Notice, and the Transferor shall concurrently therewith remit to such Selling Shareholder that portion of the sale proceeds to which such Selling Shareholder is entitled by reason of its participation in such sale.

 

(f)            To the extent that any Proposed Transferee prohibits the participation of a Selling Shareholder exercising its co-sale rights hereunder in a proposed Transfer or otherwise refuses to purchase shares or other securities from a Selling Shareholder exercising its Right of Co-Sale hereunder, the Transferor shall not sell to such Proposed Transferee any Equity Securities unless and until, simultaneously with such sale, the Transferor shall purchase such Equity Securities from such Selling Shareholder for the same consideration and on the same terms and conditions as the proposed transfer described in the Transfer Notice.

 

4.3          Non-Exercise of Rights.

 

(a)           Subject to any other applicable restrictions on the sale of such shares, to the extent that any Selling Shareholder has not exercised its Right of Co-Sale in the sale of the Offered Shares within the time periods specified in Section 4.2, the Transferor shall have a period of sixty (60) days from the expiration of the Co-Sale Period to sell (and if any Selling Shareholder elects to exercise its Right of Co-Sale, simultaneously with such Selling Shareholder’s sale of its Equity Securities to the Proposed Transferee, or the Transferor’s purchase of the Equity Securities from such Selling Shareholders in accordance with Section 4.2) the Offered Shares to the Proposed Transferee upon terms and conditions (including the purchase price) no more favorable than those specified in the Transfer Notice.

 

(b)           In the event the Transferor does not consummate the sale or disposition of the Offered Shares within sixty (60) days after the expiration of the Co-Sale Period, the Selling Shareholders’ Right of Co-Sale shall be deemed to be revived and such Offered Shares shall not

 

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be offered or otherwise made subject to any Transfer until and unless first reoffered to the Holders in accordance with the terms of this Agreement.

 

(c)           The exercise or non-exercise of the Right of Co-Sale of the Selling Shareholders under Sections 4.2 and 4.3 to participate in the sale of Equity Securities by a Founder Party or Haode Investment shall not adversely affect their rights to subsequently participate in sales of Equity Securities by any Founder Party or Haode Investment.

 

4.4          For the avoidance of doubt and notwithstanding anything to the contrary in the Transaction Documents, the Parties agree that the Series A Preferred Shares held by Haode Investment shall not be subject to this Section 4.

 

5.             Pre-emption Rights.

 

5.1          Pre-emption Rights

 

(a)           The Company shall, and the Founder Parties and Haode Investment shall procure the Company to, take, or cause to be taken, all actions, and to do, or cause to be done all things necessary to ensure (including voting its Shares which it owns) that each Shareholder has a pre-emption right with respect to any future issue or sale by the Company of any New Securities on the terms set out in this Section 5 (the “Pre-emption Right”). Each Shareholder is entitled to elect to exercise the Pre-emption Right itself or to designate another Person Controlled by such Shareholder to exercise the Pre-emption Right.

 

(b)           If the Company proposes to issue or sell any New Securities, the Company shall provide a written notice (the “New Issuance Notice”) to each Shareholder setting out (i) the number and type of Equity Securities the New Securities proposed to be issued or sold by the Company; and (ii) the price and other material terms of the proposed issue or sale.

 

(c)           Each Shareholder shall have the right (but not the obligation) to subscribe for or purchase, at the price and on the terms specified in the New Issuance Notice, up to such number of New Securities to be issued or sold determined by multiplying (i) the total number of the New Securities, by a fraction, the numerator of which is the number of Shares held by or issuable to such Shareholder (on a Fully-Diluted Basis), and the denominator of which is the aggregate number of Shares held by or issuable to all Shareholders (on a Fully-Diluted Basis).

 

(d)           Each Shareholder may exercise its Pre-emption Right by giving the Company written notice (the “Pre-emption Acceptance Notice”) within ten (10) Business Days from the date of receipt of the Pre-emption Notice (the “Pre-emption Period”) specifying the number of New Securities that it accepts to subscribe for or purchase. The failure by a Shareholder to give a Pre-emption Acceptance Notice within the Pre-emption Period shall be deemed to be a waiver of such Shareholder’s Pre-emption Right.

 

(e)           In the event that one or more Shareholder fail to fully exercise its Pre-emption Right, or decline or is deemed pursuant to Section 5.1(d) to have waived its Pre-emption Right, the Company shall give written notice (the “Oversubscription Notice”) to each Shareholder electing to fully exercise its Pre-emption Right (a “Pre-emption Electing Shareholder”) within five (5) Business Days of the expiry of the Pre-emption Period specifying

 

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the number of the remaining New Securities (the “Oversubscription Pre-emption Shares”).  Each Pre-emption Electing Shareholder shall have the right (but not the obligation) to subscribe for or purchase all or part of the Oversubscription Pre-emption Shares by giving the Company written notice (the “Oversubscription Acceptance Notice”) within five (5) Business Days of the receipt of the Oversubscription Notice, provided that if the aggregate number of Oversubscription Pre-emption Shares that the Pre-emption Electing Shareholder have indicated a willingness to subscribe for or purchase in their Oversubscription Acceptance Notice exceeds the actual number of Oversubscription Pre-emption Shares, the Oversubscription Pre-emption Shares shall be allocated to the Pre-emption Electing Shareholder on a pro-rata basis, being a fraction, the numerator of which is the number of Shares held by or issuable to such Pre-emption Electing Shareholder (on a Fully-Diluted Basis), and the denominator of which is the aggregate number of Shares held by or issuable to all Pre-emption Electing Shareholders who have submitted an Oversubscription Acceptance Notice (on a Fully-Diluted Basis).

 

(f)            If, within the Pre-emption Period, any Shareholder fails to fully exercise or elects not to exercise the Pre-emption Right, subject to Section 5.1 and upon the approval of the Board, the Company shall be free to issue or sell the remaining number of unsubscribed New Securities on terms equal to or no more favourable than the terms set out in the New Issuance Notice, provided such issue or sale is completed within three (3) months of the date of the New Issuance Notice.

 

6.             Assignments and Transfers; Third Party Beneficiaries.  This Agreement and the rights and obligations of the Parties hereunder shall inure to the benefit of, and be binding upon, their respective successors, permitted assigns and legal representatives, but shall not otherwise be for the benefit of any third party.  The Shares and rights and obligations attached thereto of any Holder, Haode Investment or Angel-1 Investor Party hereunder shall be assignable to (i) an Affiliate of such Holder, Haode Investment or Angel-1 Investor Party, or, in addition to such Affiliates, (ii) to any other assignee or transferee to whom such Holder, Haode Investment or Angel-1 Investor Party transfers at least five percent (5%) of the Equity Securities originally owned by such Holder, Haode Investment or Angel-1 Investor Party at the Closing, provided that such transferee agrees in writing to be bound by the terms of this Agreement.  This Agreement and the rights and obligations of any Party hereunder shall not otherwise be assigned without the mutual written consent of the other Parties. Except as otherwise expressly provided in this Agreement, nothing expressed or referred to in this Agreement will be construed to give any Person other than the Parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement. For the avoidance of doubt, the terms of this Agreement are not intended to be enforceable by virtue of the Contracts (Rights of Third Parties) Ordinance (Chapter 623 of the Laws of Hong Kong) by any person who is not a Party to this Agreement.

 

7.             Non-compete.

 

7.1          Without the prior written consent of the Investors, so long as a Founder Party, Haode Investment or an Angel-1 Investor Party is a director, officer, employee or a direct or indirect holder of any Ordinary Share or Angel Share of a Group Company and for a period of two (2) years after a Founder Party, Haode Investment or an Angel-1 Investor Party is no longer a director, officer, employee or a direct or indirect holder of any Ordinary Share or Angel Share of

 

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a Group Company, each Founder Party, Haode Investment and each Angel-1 Investor Party shall not, and shall cause his Affiliate or associate not to, directly or indirectly, (i) own, manage, engage in, operate, control, work for, consult with, render services for, do business with, or participate in the management, operation or control of, any business, whether in corporate, proprietorship or partnership form or otherwise, that competes with the Group Companies (a “Restricted Business”); (ii) canvass or solicit any Person who is or has been at any time a supplier or licensor of any Group Company for the purpose of inducing any such Person to terminate its business relationship with such Group Company, or (iii) solicit or entice away or endeavor to solicit or entice away any director, officer, consultant or employee of any Group Company.  The Founder Parties, Haode Investment and Angel-1 Investor Parties expressly agree that the limitations set forth in this Section 7 are reasonably tailored and reasonably necessary in light of the circumstances.  Furthermore, if any provision of this Section 7 is more restrictive than permitted by the Laws of any jurisdiction in which a Party seeks enforcement thereof, then this Section 7 will be enforced to the greatest extent permitted by Law.  Each of the undertakings contained in this Section 7 shall be enforceable by each Group Company and the Investors separately and independently of the right of the other Parties.

 

7.2          Each Investor agrees and covenants to the Company that from the Closing Date, unless otherwise agreed with the Company in writing, so long as such Investor or any of its Affiliates holds any shares of the Company, such Investor and its Affiliates shall not directly or indirectly hold any Equity Securities of the Competitors of the Company. The Company agrees that Joy Capital’s holding of the Equity Securities of 零点空间科技(北京)有限公司(the “Coffee Zero”) as of the date of this Agreement and Joy Capital’s follow up equity investment in Coffee Zero and its Affiliates shall not be subject to this Section 7.2. The Company agrees that Carob Investment Pte Ltd’s respective Affiliates shall be limited to GIC Private Limited’s Funds and Co-Investment Group, and that their and their Affiliates’ passive investments and co-investments in any Competitors through professional managed funds or together with their respective fund managers shall not be subject to this Section 7.2.  Notwithstanding anything to the contrary, the Company agrees that (i) for the purpose of the first sentence of this Section 7.2, the “Affiliates” of each of Lucky Cup and Fortunate Cup shall only include Centurium Capital Partners 2018, L.P. and its Affiliates Controlled by it, and (ii) in no event shall the first sentence of this Section 7.2 be applicable to any portfolio company in which Lucky Cup, Fortunate Cup or their respective Affiliates invest or may invest.

 

8.             Compliance and Anti-bribery and Anti-Money Laundering Undertakings. Each of the Company, the Founder Parties, Haode Investment and the Angel-1 Investor Parties undertakes to the Investors to ensure that each Group Company Parties shall conduct its business in compliance with all Applicable Laws in all material respects.  Each of the Company, the Founder Parties, Haode Investment and the Angel-1 Investor Parties undertakes to the Investors to procure that (a) each Group Company Party is at all times in compliance with applicable Anti-Bribery Laws and Anti-Money Laundering Laws; and (b) each Group Company Party shall not take any action, and procure that none of their respective Agents take any action, directly or indirectly, which would expose the Investor or any of its Affiliates to the risk of being exposed to an offence for violation of any applicable Anti-Bribery Laws and Anti-Money Laundering Laws.

 

9.             Tax Matters.

 

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9.1          The Company shall not, without the written consent of the Investors, issue or transfer securities in the Company to any investor if following such issuance or transfer the Company, in the determination of counsel or accountants for any Investor, would be a “Controlled Foreign Corporation” (the “CFC”) as defined in the U.S. Internal Revenue Code of 1986, as amended (or any successor thereto) (the “Code”) with respect to the securities held by investor.  In addition, the Company shall provide each Investor with access to such other Company information as may be required by such Investor to determine the Company’s status as a CFC to determine whether such Investor is required to report its pro rata portion of the Company’s “Subpart F income” (as defined in Section 952 of the Code) on its United States federal income tax return, or to allow such Investor to otherwise comply with applicable United States federal income tax laws.  In the event that the Company is determined by the Company’s tax advisors or by counsel or accountants for any Investor to be a CFC with respect to the securities held by such Investor, the Company agrees to use commercially reasonable efforts to avoid generating Subpart F income.

 

9.2          The Company will not be at any time during the calendar year in which the Closing occurs a “passive foreign investment company” within the meaning of Section 1297 of the Code (a “PFIC”).  The Company shall use its best efforts to avoid being a PFIC.

 

9.3          The Company shall take such actions, including making an election to be treated as a corporation or refraining from making an election to be treated as a partnership, as may be required to ensure that at all times the Company is treated as corporation for United States federal income tax purposes.

 

9.4          The Investor shall make due inquiry with its tax advisors regarding whether such Investor’s interest in the Company is subject to the reporting requirements of either or both of Sections 6038 and 6038B (and the Company shall cooperate with such Investor to provide necessary information for such determination), and in the event that any Investor’s tax advisors determine that such Investor’s interest in the Company is subject to any such reporting requirements, the Company agrees, upon a request from such Investor, to provide such information to such Investor as may be necessary to fulfill such Investor’s obligations thereunder.

 

10.          Redemption.

 

10.1        Series A Preferred Shares Redemption Event and Redemption Price.  At any time after the failure by the Company to complete an IPO within five (5) years following the Series A Closing Date (a “Series A Redemption Event”), each Series A Preferred Share shall be redeemable at the option of the Series A Holder thereof, out of funds legally available therefor, at a redemption price per Series A Preferred Share (the “Series A Redemption Price”) that shall equal the aggregate of:

 

(a)           one hundred percent (100%) of the applicable Series A Issue Price;

 

(b)           all accrued but unpaid dividends thereon up to the date of actual payment of the entire Series A Redemption Price; and

 

(c)           the amount that would give a simple annual rate of return (taking into account the amount of the above sub-section (b)) of twelve percent (12%) on each such Series A

 

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Preferred Share in respect of the Series A Issue Price calculated from the Series A Closing Date up to and including the date of actual payment of the entire Series A Redemption Price in respect of each such Series A Preferred Share,

 

in each case, proportionally adjusted for share subdivisions, share dividends, reorganizations, reclassifications, consolidations or mergers.

 

10.2        Series B Preferred Shares Redemption Event and Redemption Price.  At any time after (i) the failure by the Company to complete an IPO within five (5) years following the Series B Closing Date (for avoidance of doubt, with respect to Additional Series B Investor, such date shall also be the Series B Closing Date) or (ii) any Series A Holder has exercised its redemption right under Section 10.1 (each, a “Series B Redemption Event”), each Series B Preferred Share shall be redeemable at the option of the Series B Holder thereof, out of funds legally available therefor, at a redemption price per Series B Preferred Share (the “Series B Redemption Price”) that shall equal the aggregate of:

 

(a)           one hundred percent (100%) of the applicable Series B Issue Price;

 

(b)           all accrued but unpaid dividends thereon up to the date of actual payment of the entire Series B Redemption Price; and

 

(c)           the amount that would give a simple annual rate of return (taking into account the amount of the above sub-section (b)) of twelve percent (12%) on each such Series B Preferred Share in respect of the Series B Issue Price calculated from the Series B Closing Date (for avoidance of doubt, with respect to Additional Series B Investor, such amount shall also be calculated from the Series B Closing Date) up to and including the date of actual payment of the entire Series B Redemption Price in respect of each such Series B Preferred Share,

 

in each case, proportionally adjusted for share subdivisions, share dividends, reorganizations, reclassifications, consolidations or mergers.

 

10.3        Series B-1 Preferred Shares Redemption Event and Redemption Price.  At any time after (i) the failure by the Company to complete an IPO within five (5) years following the applicable Series B-1 Closing Date, (ii) any Series A Holder has exercised its redemption right under Section 10.1, or (iii) any Series B Holder has exercised its redemption right under Section 10.2 (each, a “Series B-1 Redemption Event”), each Series B-1 Preferred Share shall be redeemable at the option of the Series B-1 Holder thereof, out of funds legally available therefor, at a redemption price per Series B-1 Preferred Share (the “Series B-1 Redemption Price”, the Series B-1 Redemption Price, the Series B Redemption Price or the Series A Redemption Price, the “Redemption Price”) that shall equal the aggregate of:

 

(a)           one hundred percent (100%) of the applicable Series B-1 Issue Price;

 

(b)           all accrued but unpaid dividends thereon up to the date of actual payment of the entire Series B-1 Redemption Price; and

 

(c)           the amount that would give a simple annual rate of return (taking into account the amount of the above sub-section (b)) of twelve percent (12%) on each such Series B-

 

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1 Preferred Share in respect of the applicable Series B-1 Issue Price calculated from the applicable Series B-1 Closing Date up to and including the date of actual payment of the entire Series B-1 Redemption Price in respect of each such Series B-1 Preferred Share,

 

in each case, proportionally adjusted for share subdivisions, share dividends, reorganizations, reclassifications, consolidations or mergers.

 

10.4        Redemption and Put. At any time after a Series A Redemption Event, each Series A Holder shall be entitled to, at any time after a Series B Redemption Event, each Series B Holder shall be entitled to, and at any time after a Series B-1 Redemption Event, each Series B-1 Holder shall be entitled to, at its option, require the Company to redeem or repurchase, or request the Founder Parties, Haode Investment (on a jointly basis) to purchase, and the Company, Haode Investment and the Founder Parties are obligated to, redeem, repurchase or purchase such Holder’s Preferred Shares at the applicable Redemption Price. A holder of Preferred Shares may exercise the foregoing redemption or put right by giving a written notice to the Company, Haode Investment and the Founder Parties specifying the number and type of Preferred Shares to be redeemed or sold (the “Redemption Shares”) and the date on which the redemption or sale of such Preferred Shares is to be completed (the “Redemption Completion Date”), being a date that is at least thirty (30) days after the date of such written notice. At the option of such holder, the Company is obligated to redeem the Redemption Shares at the applicable Redemption Price of such Redemption Shares in accordance with this Agreement and the Memorandum of Articles, and the Founder Parties and Haode Investment shall be obliged to purchase all of such Redemption Shares at the applicable Redemption Price of such Redemption Shares on the terms of this Section 10, and shall pay the aggregate Redemption Price to such holder in cash by wire transfer of immediately available funds in US$ to the bank account designated by such holder.

 

11.          Liquidation Preferences. Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or any other Liquidation Event, and subject to the provisions of the Applicable Laws:

 

(a)           Before any distribution or payment shall be made to the holders of any Ordinary Shares, Angel Shares, Series A Preferred Shares and Series B Preferred Shares, each holder of Series B-1 Preferred Shares shall be entitled to receive, on a pari passu basis, an amount per Series B-1 Preferred Share then held by such holder (the “Series B-1 Preference Amount”) equal to the aggregate of:

 

(A) one hundred percent (100%) of the applicable Series B-1 Issue Price;

 

(B) all accrued but unpaid dividends thereon up to the date of actual payment of the entire Series B-1 Preference Amount; and

 

(C) the amount that would give a simple annual rate of return (taking into account the amount of the above sub-section (B)) of twelve percent (12%) on each such Series B-1 Preferred Share in respect of the applicable Series B-1 Issue Price calculated from the applicable  Series B-1 Closing Date up to and including the date of actual payment of the entire Series B-1 Preference Amount in respect of each such Series B-1 Preferred Share,

 

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in each case, proportionally adjusted for share subdivisions, share dividends, reorganizations, reclassifications, consolidations or mergers.

 

If, upon any such Liquidation Event, the assets of the Company shall be insufficient to make payment of the foregoing Series B-1 Preference Amount in full on all Series B-1 Preferred Shares, then such assets shall be distributed among the holders of Series B-1 Preferred Shares, ratably in proportion to the full amounts to which they would otherwise be respectively entitled pursuant to this subparagraph (a).

 

(b)           After payment of the Series B-1 Preference Amount in full pursuant to subparagraph (a) above, and before any distribution or payment shall be made to the holders of any Ordinary Shares, Angel Shares and Series A Preferred Shares, each holder of Series B Preferred Shares shall be entitled to receive, on a pari passu basis, an amount per Series B Preferred Share then held by such holder (the “Series B Preference Amount”) equal to the aggregate of:

 

(A) one hundred percent (100%) of the applicable Series B Issue Price;

 

(B) all accrued but unpaid dividends thereon up to the date of actual payment of the entire Series B Preference Amount; and

 

(C) the amount that would give a simple annual rate of return (taking into account the amount of the above sub-section (B)) of twelve percent (12%) on each such Series B Preferred Share in respect of the Series B Issue Price calculated from the Series B Closing Date (for avoidance of doubt, with respect to Additional Series B Investor, such amount shall also be calculated from the Series B Closing Date) up to and including the date of actual payment of the entire Series B Preference Amount in respect of each such Series B Preferred Share,

 

in each case, proportionally adjusted for share subdivisions, share dividends, reorganizations, reclassifications, consolidations or mergers.

 

If, upon any such Liquidation Event, the assets of the Company shall be insufficient to make payment of the foregoing Series B Preference Amount in full on all Series B Preferred Shares, then such assets shall be distributed among the holders of Series B Preferred Shares, ratably in proportion to the full amounts to which they would otherwise be respectively entitled pursuant to this subparagraph (b).

 

(c)           After payment of the Series B-1 Preference Amount in full pursuant to subparagraph (a) above and the Series B Preference Amount in full pursuant to subparagraph (b) above, and before any distribution or payment shall be made to the holders of any Ordinary Shares and Angel Shares, each holder of Series A Preferred Shares shall be entitled to receive, on a pari passu basis, an amount per Series A Preferred Share then held by such holder (the “Series A Preference Amount”) equal to the aggregate of:

 

(A) one hundred percent (100%) of the applicable Series A Issue Price;

 

(B) all accrued but unpaid dividends thereon up to the date of actual payment of the entire Series A Preference Amount; and

 

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(C) the amount that would give a simple annual rate of return (taking into account the amount of the above sub-section (B)) of twelve percent (12%) on each such Series A Preferred Share in respect of the Series A Issue Price calculated from the Series A Closing Date up to and including the date of actual payment of the entire Series A Preference Amount in respect of each such Series A Preferred Share,

 

in each case, proportionally adjusted for share subdivisions, share dividends, reorganizations, reclassifications, consolidations or mergers.

 

If, upon any such liquidation, the assets of the Company shall be insufficient to make payment of the foregoing Series A Preference Amount in full on all Series A Preferred Shares, then such assets shall be distributed among the holders of Series A Preferred Shares, ratably in proportion to the full amounts to which they would otherwise be respectively entitled pursuant to this subparagraph (c).

 

(d)           After distribution or payment in full of the amount distributable or payable on the Preferred Shares pursuant to Section 11(a), Section 11(b) and Section 11(c), the remaining assets of the Company available for distribution to the Shareholders shall be distributed ratably among the holders of the outstanding Preferred Shares (treating for this Section 11(d) all Preferred Shares as if they had been converted to Ordinary Shares immediately prior to such liquidation, dissolution or winding up of the Company or other Liquidation Event), the outstanding Ordinary Shares and Angel Shares.

 

12.          Voting Rights. The holders of the Preferred Shares shall have the voting rights described in the Memorandum and Articles.

 

13.          Share Dividends. The Company shall distribute and pay, and the holders of the Preferred Shares shall be entitled to receive, the dividends or other distributions on Shares on a pro rata basis with all outstanding Shares of the Company entitled to dividends (treating for this section all Preferred Shares as if they had been converted to Ordinary Shares immediately prior to such declaration and payment of dividends or other distributions), after declaration by the Company of any dividends or other distributions.

 

14.          Conversion Rights. The holders of the Preferred Shares and Angel Shares shall have the rights described in the Memorandum and Articles with respect to the conversion of the Preferred Shares into Ordinary Shares. The “Series A Conversion Price” shall initially equal the Series A Issue Price, and shall be adjusted in the split of shares, declaration of dividends, capital reorganization or similar events from time to time as provided in the Memorandum and Articles.  For the avoidance of doubt, the initial conversion ratio for Series A Preferred Shares to Ordinary Shares shall be 1:1.  The “Series B Conversion Price” shall initially equal the Series B Issue Price, and shall be adjusted in the split of shares, declaration of dividends, capital reorganization or similar events from time to time as provided in the Memorandum and Articles.  For the avoidance of doubt, the initial conversion ratio for Series B Preferred Shares to Ordinary Shares shall be 1:1.  The “Series B-1 Conversion Price” shall initially equal the applicable Series B-1 Issue Price, and shall be adjusted in the split of shares, declaration of dividends, capital reorganization or similar events from time to time as provided in the Memorandum and Articles.  For the avoidance of doubt, the initial conversion ratio for Series B-1 Preferred Shares to Ordinary Shares shall be 1:1.

 

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15.          Anti-Dilution.  In the event the Company shall at any time after the Closing issue New Securities for a consideration or deemed consideration per Ordinary Share less than the then current applicable Series A Conversion Price, applicable Series B Conversion Price or applicable Series B-1 Conversion Price, then such Series A Conversion Price, Series B Conversion Price or Series B-1 Conversion Price then in effect shall be reduced to the price determined as set forth below:

 

CP2 = CP1 * (A+B)/(A+C)

 

WHERE:

 

CP2 = the new Series A Conversion Price, the new Series B Conversion Price or the new Series B-1 Conversion Price effective upon the issuance of the New Securities, as applicable

 

CP1 = the Series A Conversion Price, the Series B Conversion Price or the Series B-1 Conversion Price in effect immediately before the issuance of the New Securities, as applicable

 

A = the total outstanding Ordinary Shares and Angel Shares immediately before the issuance of the New Securities (including the total outstanding Ordinary Shares, Angel Shares, and Preferred Shares on an as converted basis and all outstanding options or warrants and other convertible securities on an as-exercised basis),

 

B = the total consideration received for the issuance or sale of the New Securities divided by CP1, and

 

C = the number of New Securities issued or sold or deemed issued or sold.

 

16.          No Distribution to Shareholders Under Certain Circumstances.  The Parties agree and acknowledge that, before a Shareholder fully pays up its subscription price for all the Equity Securities in a Group Company registered under its name, no distribution of any monies shall be made by any Group Company to such Shareholder or its successors or transferees, whether in the form of dividends, liquidation proceeds, proceeds from a sale of assets of the Group, redemption amount or otherwise.

 

17.                               IPO

 

17.1        Obligation to consummate an IPO.  The Company shall, and the Founder Parties and Haode Investment shall procure that the Company will use its best efforts and take all necessary actions to consummate an IPO, as soon as practicable and in any case, on or before the fifth (5th) anniversary of the Series A Closing Date.

 

17.2        Registration Rights.  In connection with an initial public listing on an exchange in the United States, the Company hereby grants to the Shareholders such registration rights as set forth in Schedule II.

 

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18.                               Confidentiality.

 

18.1        General Obligation.  Each Party undertakes to the other Parties that it shall not reveal, and that it shall procure that its respective directors, equity interest holders, current or prospective partners, prospective transferees, members, advisors and bankers, officers, employees, agents, consultants, auditors and professional advisors (collectively, “Representatives”) do not reveal, to any third party any Confidential Information without the prior written consent of the Company or the concerned Party, as the case may be, or use any Confidential Information in such manner that is detrimental to the Company or the concerned Party, as the case may be.  The term “Confidential Information” as used in this Section 18 means, (a) any information concerning the organization, business, technology, safety records, investment, finance, transactions or affairs of any Party or any Group Company or any of their respective directors, officers or employees (whether conveyed in written, oral or in any other form and whether such information is furnished before, on or after the date of this Agreement); (b) the terms of this Agreement and the terms of any of the other Transaction Documents, and the identities of the Parties and their respective Affiliates; and (c) any other information or materials prepared by a Party or any Group Companies or its Representatives that contains or otherwise reflects, or is generated from, Confidential Information.  The Group Company Parties, the Founder Parties and Haode Investment shall procure that each of the other Group Companies shall procure that the director appointed by it, respectively, shall comply with the obligations set forth in this Section 18 as if each were a Party to this Agreement.

 

18.2        Exceptions.  The provisions of Section 18.1 shall not apply to:

 

(a)           disclosure of Confidential Information that is or becomes generally available to the public other than as a result of disclosure by or at the direction of a Party or any of the Representatives in violation of this Agreement;

 

(b)           disclosure by a Party to a Representative; provided that such Representative (i) is under a similar obligation of confidentiality or (ii) is otherwise under a binding professional obligation of confidentiality;

 

(c)           disclosure by a Party to its Affiliates and their respective Representatives; provided that each such Affiliate and Representative (i) is under a similar obligation of confidentiality or (ii) is otherwise under a binding professional obligation of confidentiality;

 

(d)           disclosure, after giving prior notice to the other Parties to the extent practicable under the circumstances and subject to any practicable arrangements to protect confidentiality, to the extent required under the rules of any stock exchange on which the shares of a Party or its parent company are listed or by Applicable Laws or governmental regulations or judicial or regulatory process or in connection with any judicial process regarding any legal action, suit or proceeding arising out of or relating to this Agreement;

 

(e)           disclosure by Investors or its Affiliates of Confidential Information to any Person to whom the Investors or its Affiliate intend to transfer their Equity Securities in the Group (provided that such Person has been informed of the confidential nature of the information being disclosed and has agreed to maintain the confidentiality of such information); or

 

30

 

(f)            disclosure by the Company of any information required by any Governmental Authority or the Company’s underwriter to be disclosed in connection with an IPO.

 

18.3        Publicity.  Except as required by law, by any Governmental Authority, by any relevant stock exchange on which the shares of Investors are listed or otherwise agreed by all the Parties, no press release or public announcement concerning the relationship or involvement of the Parties shall be made by any Party without the prior written consent of all the other Parties.  The Group Companies, the Founder Parties and Haode Investment shall procure that none of the Group Companies shall, issue a press release or make any public announcement or other public disclosure with respect to any of the transactions contemplated herein, or use the name of the Investors or any of its respective Affiliates without obtaining in each instance the prior written consent of the Investors. The Investors shall not issue a press release or make any public announcement or other public disclosure with respect to any of the transactions contemplated herein, or use the name of the Group Company Parties, the Founder Parties, Haode Investment and the Angel-1 Investor Parties or any of its respective Affiliates without obtaining in each instance the prior written consent of the Company.

 

19.          Effect of Change in Company’s Capital Structure.  With respect to the calculation of Equity Securities and Ordinary Share Equivalents pursuant to this Agreement, appropriate adjustments shall be made to reflect stock dividends, stock splits, reverse stock splits, combinations, reclassifications or similar changes in the capital structure of the Company.

 

20.          Further Instruments and Actions.  Each of the Parties agrees from time to time to execute and deliver, or cause to be executed and delivered, such further documents and other instruments and to take such further actions as may reasonably be necessary to effectively carry out the intent of this Agreement.  The Founder Parties and Haode Investment shall cooperate affirmatively with the Group Company Parties and the Holders, to the extent requested by the Group Company Parties or the Holders, to enforce rights and obligations pursuant hereto.

 

21.                               Term and Termination.

 

21.1        Effective Date; Termination.  This Agreement shall become effective upon the execution hereof by all of the Parties, provided that with respect to Taide Investment, this Agreement shall become effective upon the payment of the exercise price under the Exercise Notice, and, except as otherwise provided herein, shall continue in effect until the earlier to occur of (a) with respect to a Holder, the date on which such Holders no longer holds any Ordinary Shares or any Ordinary Share Equivalents and (b) any date agreed upon in writing by all of the Parties, provided that the provisions of the following sections shall terminate and be of no further force and effect upon the closing of an IPO: Section 2 (Information Rights), Section 3 (Corporate Governance), Section 4 (Prohibition on Transfer of Shares and Right of Co-Sale ) and Section 7.2 (Non-compete).

 

21.2        Consequences of Termination.  If this Agreement is terminated pursuant to Section 21.1, this Agreement shall become null and void and of no further force and effect, except that the Parties shall continue to be bound by the provisions of this Section 21, Section 1 (Interpretation), Section 6 (Assignments and Transfers; Third Party Beneficiaries), Section 7.1 (Non-compete), Section 18 (Confidentiality) and Section 22 (Miscellaneous).  Nothing in this Section 21.2 shall

 

31

 

be deemed to release any Party from any liability for any breach of this Agreement prior to the effective date of such termination.

 

22.                               Miscellaneous.

 

22.1        Governing Law.  This Agreement shall be governed by and construed under the laws of Hong Kong without regard to the principles of conflicts of law thereunder.

 

22.2        Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Each such counterpart may be delivered electronically, such as by facsimile or e-mail.

 

22.3        Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

22.4        Notices.  Any and all notice required or permitted under this Agreement shall be provided by one or more of the following means and shall be deemed to have been duly given (a) if delivered personally, when received, (b) if transmitted by facsimile, on the date of transmission with receipt of a transmittal confirmation, (c) if transmitted by email, on the date of transmission, or (d) if by international courier service, on the fourth (4th) Business Day following the date of deposit with such courier service, or such earlier date as may be confirmed in writing to the sender by such courier service.  Any notice given pursuant to this Section 22.4 shall be addressed to the address, facsimile number or email address of the receiving Party as set forth on Schedule I of this Agreement.

 

22.5        No Agency.  No Shareholder, acting solely in its capacity as a Shareholder, shall act as an agent of the Company or have any authority to act for or to bind the Company, except as authorized by the Board.  For the purposes of this Section, unless acting expressly solely in its capacity as a Shareholder, any Shareholder who is a director or officer or employee of a Group Company acting in the ordinary course of business of such Group Company shall be conclusively deemed to act for and on behalf of, and shall not be regarded as acting as an agent of, such Group Company.  Any Shareholder that takes any action or binds the Company in violation of this Section shall be solely responsible for, and shall indemnify the Company and each other Shareholder against, any losses, claims, damages, liabilities, judgments, fines, obligations, expenses and liabilities of any kind or nature whatsoever (including but not limited to any investigative, legal and other expenses reasonably incurred in connection with, and any amounts paid in settlement of, any pending or threatened legal action or proceeding) that the Company, or such other Shareholders, as the case may be, may at any time become subject to or liable for by reason of such violation.  The provisions of this Section 22.5 shall survive the termination of this Agreement.

 

22.6        No Partnership.  The Shareholders expressly do not intend hereby to form a partnership, either general or limited, under any jurisdiction’s partnership law.  The Shareholders do not intend to be partners one to another, or partners as to any third party, or create any fiduciary relationship among themselves, solely by virtue of their status as Shareholders.  To the extent that any Shareholder, by word or action, represents to another Person that any Shareholder is a partner or that the Company is partnership, the Shareholder making such representation shall be liable to any other Shareholders that incur any losses, claims, damages, liabilities, judgments, fines,

 

32

 

obligations, expenses and liabilities of any kind or nature whatsoever (including but not limited to any investigative, legal or other expenses reasonably incurred in connection with, and any amount paid in settlement of, any pending or threatened legal action or proceeding) arising out of or relating to such representation.  The provisions of this Section 22.6 shall survive the termination of this Agreement.

 

22.7        Amendments and Waivers.

 

(a)           No amendment or waiver of any provisions under this Agreement shall be effective unless made in writing and signed by and on behalf of the Company and the holders of two thirds (2/3) or more of the then outstanding Shares (voting together as a single class and on an as-converted basis), provided that (i) this Agreement may not be amended and no provision under this Agreement may be waived, in either case, with respect to any Shareholder without the written consent of such Shareholder if such Shareholder’s rights or obligations hereunder are being affected resulting in a disproportionate outcome as compared to each other Shareholder holding the same type of Shares with the same right or obligation, as the case may be, prior to such amendment, and (ii) without the written consent or affirmative vote of holders of two thirds (2/3) or more of each class of Preferred Shares, the rights, preferences, privileges or powers of, or the restrictions provided for the benefit of, such class of Preferred Shares set forth in this Agreement shall not be amended, changed or waived; provided further, however, that if any amendment or waiver of this Agreement is with respect to any matter that has been duly approved by the Shareholders or the Board in accordance with this Agreement and, if required, the Memorandum and Articles, as applicable, to the extent that such amendment or waiver is required or advisable to implement such matter so approved, then such amendment or waiver shall only require the written consent of the Company.

 

(b)           Notwithstanding anything to the contrary in this Section 22.7 or in the Transaction Documents, but without prejudicing the Pre-emption Right the Investors may have under the Transaction Documents or any right, privilege, benefits or interest of any particular Shareholder under the Transaction Documents, in the event that after the Closing the Company intends to issue New Securities at a consideration or deemed consideration per Share greater than the then applicable Conversion Price of the Shares held by such Investor (the “Qualified New Issuance”), and so long as the rights, benefits and privileges of such Investor or its Shares will not be adversely or disproportionally affected as a result of the Qualified New Issuance, such Investor shall, and such Investor shall procure the Director appointed by it (if any) to, take, or cause to be taken, all actions, and to do, or cause to be done all things necessary to effectuate Qualified New Issuance, including but not limited to (i) vote in favor of the Qualified New Issuance in the Board Meeting (if applicable) and Shareholders’ Meeting, and (ii) amend and revise the Memorandum and Articles, the Investors’ Rights Agreement and any other documents or agreements necessary to reflect the amendments and changes resulting from the Qualified New Issuance; provided however that, if as a result of the Qualified New Issuance, the right of liquidation preference under Section 11 and/or the redemption preference under Section 10 of each Investor become subordinated to the right(s) of the holder(s) of the New Securities in the Qualified New Issuance (the “Preference Change”), the Investors confirm and acknowledge that any amendments to the Memorandum and Articles, the Investors’ Rights Agreement and any other documents or agreements reflecting the Preference Change shall not be deemed to constitute any disproportionate and adverse effect under this Section 22.7 (b).  For the avoidance of doubt, the

 

33

 

amendment and revision to the Memorandum and Articles, the Investors’ Rights Agreement or any other documents or agreements necessary to reflect the amendments and changes resulting from the Qualified New Issuance pursuant to this Section 22.7 (b) shall take effect only by written consent of the Company and shall not require the signing or consent by any Investor.

 

(c)           For the avoidance of doubt, the issuance of any Equity Securities duly approved in accordance with this Agreement and the Memorandum and Articles and the grant to the holders of such Equity Securities all or any of (1) the right to receive dividends, (2) the right to receive distributions upon liquidation, dissolution or winding up, and (3) the right to redeem such Equity Securities, in each case on parity with or in priority to the Preferred Shares shall not be deemed to constitute any disproportionate and adverse effect under this Section 22.7.

 

(d)           Subject to compliance with the other provisions of this Agreement and the Memorandum and Articles, the Company is hereby empowered to sign a Joinder Agreement in the form attached hereto as Exhibit A on behalf of all Shareholders for the purpose of adding a new Shareholder, whether by permitted transfer hereunder or otherwise, as a party to this Agreement who signs a Joinder Agreement in the form attached hereto as Exhibit A.

 

(e)           The Company shall give prompt notice of any amendment or variation hereof or waiver hereunder to any Party that did not consent in writing to such amendment or variation with.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Party hereto and each of their respective successors and assigns.

 

22.8        Severability. If one or more provisions of this Agreement are held to be unenforceable under any Applicable Law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

22.9        Entire Agreement. This Agreement, the other Transaction Documents and the documents referred to herein and therein, together with all schedules and exhibits hereto and thereto, constitute the full and entire understanding and agreement among the Parties with regard to the subject matters hereof and thereof.

 

22.10      Avoidance of Restrictions.  The Parties agree that the transfer restrictions in this Agreement shall not be capable of being avoided by the holding of Equity Securities indirectly through a company or other entity that can itself be sold in order to dispose of any interest in Equity Securities free of such restrictions.  Any Transfer or issue of any shares (or other interest) of any such company or entity Controlled by directly or indirectly owned by a Founder Party or Haode Investment (or its ultimate Controller) shall be treated as a Transfer of Equity Securities held by such Founder Party or Haode Investment (or its ultimate Controller), and the provisions of this Agreement that apply in respect of the Transfer of Equity Securities shall apply in respect of such Transfer or issue of shares or other interest in such company or entity.

 

22.11      Dispute Resolution.  Any dispute, controversy or difference between the Parties arising out of, in connection with or relating to this Agreement (a “Dispute”) shall be resolved through arbitration pursuant to this Section 22.11.  The arbitration shall be conducted in Hong Kong by the Hong Kong International Arbitration Centre (the “HKIAC”) in accordance with the

 

34

 

Hong Kong International Arbitration Centre Administered Arbitration Rules (the “HKIAC Rules”) in effect at the time of the arbitration.  There shall be three arbitrators.  Each of the following: (i) the claimant to the Dispute, or in the case of multiple claimants, all such claimants acting collectively (the “Claimant”) and (ii) the respondent to the Dispute, or in the case of more than one respondent, the respondents acting collectively (the “Respondent”) shall select one arbitrator.  The party commencing the arbitration shall nominate his arbitrator at the time of filing the demand for arbitration.  The Respondent shall nominate his arbitrator within thirty (30) days after receiving the demand for arbitration.  Such arbitrators shall be freely selected, and neither the Claimant nor the Respondent shall be limited in their selection to any prescribed list.  The HKIAC shall select the third arbitrator.  Each arbitrator shall be qualified to practice law in Hong Kong.  If either party does not appoint an arbitrator within the time set forth above or if there are more than one Claimant or one Respondent and the Claimant (or Respondent as the case may be) fails to agree on the selection of the same arbitrator between themselves as provided above, the relevant appointment or selection shall be made by the HKIAC.  The arbitration proceedings shall be conducted in English.  If the HKIAC Rules are in conflict with the provisions of this Section 22.11 including the provisions concerning the appointment of arbitrators, the provisions of this Section 22.11 shall prevail.  The arbitration tribunal shall decide any Dispute submitted by the Parties to the arbitration strictly in accordance with the substantive law of Hong Kong and shall not apply any other substantive law.  In making their award, the arbitrators shall have the authority to award attorney’s fees and other costs and expenses of the arbitration as they deem just and appropriate under the circumstances.  The award of the arbitration tribunal shall be final and binding upon the disputing Parties, and any Party may apply to a court of competent jurisdiction for enforcement of such award.  A Party shall be entitled to seek preliminary injunctive relief, if possible, from any court of competent jurisdiction pending the constitution of the arbitral tribunal.

 

22.12      Amendment and Restatement of the Original IRA, the Amended IRA and the Second Amended IRA. This Agreement shall take effect from the date hereof and upon the date when this Agreement takes effect, this Agreement shall terminate, supersede and replace the Second Amended IRA in its entirety with immediate effect, provided that nothing herein shall (i) relieve any party to the Original IRA, the Amended IRA and/or the Second Amended IRA from any liability thereunder (including liability for any breach thereof occurring prior to the date hereof) that has already accrued as of the date hereof, or (ii) constitute a waiver of any rights, remedies or claims which a party to the Original IRA, the Amended IRA and/or the Second Amended IRA may have thereunder with respect to the foregoing accrued liability.

 

[The remainder of this page has been intentionally left blank]

 

35

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Blue Fortune Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jiaxing Zhou
    
	
 
    	
Name:
    	
Jiaxing Zhou
    
	
 
    	
Title:
    	
Director
    

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Taide Investment Management Ltd
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jun Chen
    
	
 
    	
Name:
    	
Jun Chen
    
	
 
    	
Title:
    	
Authorized Signature(s)
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Bel45 Private Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Bel45 Private Opportunities GP, LLC, its   general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the Bel45 Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Tango Capital   Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Tango Capital Opportunities GP, LLC, as   general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the Tango Capital Opportunities Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration & Management   Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
TSCL Private   Markets Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
TSCL Private Markets GP, LLC, its general   partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the TSCL Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
NDSIB Private Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
NDSIB Private Opportunities GP, LLC, its   general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the NDSIB Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BlackRock Private Opportunities Fund IV, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock POF IV (GP), LLC, its general   partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the POF IV Series), its member   manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BR POF IV Cayman   Master Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   POF IV (GP), LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the POF IV Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
High Rock Direct Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
High Rock GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the High Rock Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BlackRock MD Private Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock MD Private Opportunities GP, LLC,   its general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the MD Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
1885 Private Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
1885 Private Opportunities Fund GP, LLC,   its general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the 1885 Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
NHRS   Private Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock NHRS   GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock PEP   Master Carry L.P. (solely on behalf of the BR/NHRS Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Sullivan Way   Private Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Sullivan   Way Private Opportunities GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the SW Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Coin Private Opportunities, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Coin Private Opportunities GP, LLC, its   general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the Coin Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
POF III Scottish Master, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock POF III (GP), LLC, its general   partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry L.P. (solely on   behalf of the POF III Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BlackRock Inverwood   Private Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   Inverwood Private Opportunities GP, LLC, its general partner
    
	
 
    	
By:
    	
BlackRock PEP   Master Carry, L.P. (solely on behalf of the Inverwood Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
OV Private   Opportunities, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BR/OV GP,   LLC, as general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the BR/OV Series), its member   manager
    
	
 
    	
By:
    	
Portfolio   Administration & Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Red River Direct Investment Fund III, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Red River Private Equity III, LLC, its   general partner
    
	
 
    	
By:
    	
BlackRock   PEP Master Carry, L.P. (solely on behalf of the Red River III Series), its   member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BR/ERB Co-Investment Fund II, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Private Equity NM II, LLC, its   general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the BR/ERB II Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BlackRock MSV Private Opportunities Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BlackRock MSV Private Opportunities GP,   LLC, its general partner
    
	
 
    	
By:
    	
BlackRock PEP Master Carry, L.P. (solely on   behalf of the MSV Series), its member manager
    
	
 
    	
By:
    	
Portfolio Administration &   Management Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Private   Equity Partners VII Master, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock Investment Management, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Private Equity   Partners VII US, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
BlackRock   Investment Management, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Total Alternatives   Fund — Private Equity LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
Total Alternatives Fund (GenPar) LLC, its   general partner
    
	
 
    	
By:
    	
BlackRock ASG Master Carry L.P. — TAF   Series, its sole member
    
	
 
    	
By:
    	
BlackRock Financial Management, Inc.,   its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Total Alternatives   Fund — Private Equity (B) LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
Total Alternatives Fund (GenPar) LLC, its   general partner
    
	
 
    	
By:
    	
BlackRock ASG Master Carry L.P. — TAF   Series, its sole member
    
	
 
    	
By:
    	
BlackRock Financial Management, Inc.,   its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
BlackRock Private   Opportunities Fund IV Master SCSp
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
POF IV GP S.À.R.L.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Farris
    
	
 
    	
Name:
    	
Andrew Farris
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Darsana Master   Fund LP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Darsana Capital LLC,   its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Chris Ferrante
    
	
 
    	
Name:
    	
Chris Ferrante
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Fortunate Cup Holdings Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Hui Li
    
	
 
    	
Name:
    	
Hui Li
    
	
 
    	
Title:
    	
Director
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Lucky Cup Holdings Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Hui Li
    
	
 
    	
Name:
    	
Hui Li
    
	
 
    	
Title:
    	
Director
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Joy Capital II, L.P.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Joy Capital II GP, L.P.
    
	
 
    	
 
    	
its general partner
    
	
 
    	
By:
    	
Joy Capital GP, Ltd.
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Erhai Liu
    
	
 
    	
Name:
    	
Erhai Liu
    
	
 
    	
Title:
    	
Director
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
Joy Luck   Management Limited
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Erhai Liu
    
	
 
    	
Name:
    	
Erhai Liu
    
	
 
    	
Title:
    	
Director
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
 
    	
Honour Ample Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Erhai Liu
    
	
 
    	
 
    	
Name:
    	
Erhai Liu
    
	
 
    	
 
    	
Title:
    	
Director
    

 

Signature Page

Third Amended and Restated Investors’ Rights Agreement

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
 
    	
Galaxy Shine Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ Zhengxing Shao
    
	
 
    	
 
    	
Name:
    	
Zhengxing Shao
    
	
 
    	
 
    	
Title:
    	
Authorized Signature(s)
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
 
    	
Luckin Coffee Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Zhiya Qian
    
	
 
    	
 
    	
Name:
    	
Zhiya Qian
    
	
 
    	
 
    	
Title :
    	
Director
    

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
 
    	
Luckin Coffee Investment Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Zhiya Qian
    
	
 
    	
 
    	
Name:
    	
Zhiya Qian
    
	
 
    	
 
    	
Title:
    	
Director
    

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
 
    	
Luckin Coffee (Hong Kong) Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Zhiya Qian
    
	
 
    	
 
    	
Name:
    	
Zhiya Qian
    
	
 
    	
 
    	
Title :
    	
Director
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
 
    	
Beijing Luckin Coffee Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
瑞幸咖啡(北京)有限公司
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Zhibin Zhu
    
	
 
    	
 
    	
Name:
    	
Zhibin Zhu
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Company Seal:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Seal of Beijing Luckin Coffee Co., Ltd.
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
 
    	
China Luckin Coffee Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
瑞幸咖啡(中国)有限公司
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Zhiya Qian
    
	
 
    	
 
    	
Name:
    	
Zhiya Qian
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Company Seal:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Seal of China Luckin Coffee Co., Ltd.
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
 
    	
Tianjin Luckin Coffee Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
瑞幸咖啡(天津)有限公司
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Zhiya Qian
    
	
 
    	
 
    	
Name:
    	
Zhiya Qian
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Company Seal:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Seal of Tianjin Luckin   Coffee Co., Ltd.
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
 
    	
Pingtan Luckin Coffee E-Commerce   Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
瑞幸咖啡电子商务(平潭)有限公司
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Zhiya Qian
    
	
 
    	
 
    	
Name:
    	
Zhiya Qian
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Company Seal:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Seal of Pingtan Luckin Coffee E-Commerce Co., Ltd.
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
 
    	
Beijing Luckin Coffee Technology   Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
北京瑞吉咖啡技术有限公司
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Zhiya Qian
    
	
 
    	
 
    	
Name:
    	
Zhiya Qian
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Company Seal:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Seal of Beijing Luckin Coffee Technology Co., Ltd.
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Zhiya Qian  
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Signature:
    	
/s/ Zhiya Qian
    
	
 
    	
Zhiya Qian
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Summer Fame Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Zhiya Qian
    
	
 
    	
Name:
    	
Zhiya Qian
    
	
 
    	
Title:
    	
Director
    
				

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Min Chen  
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Signature:
    	
/s/ Min Chen
    
	
 
    	
Min Chen
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
May Bliss   Limited
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Min Chen
    
	
 
    	
Name:
    	
Min Chen
    
	
 
    	
Title :
    	
Director
    
				

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Primus Investments Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Primus Management GP, Limited
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Guo, Lichun
    
	
 
    	
Name:
    	
Guo, Lichun
    
	
 
    	
Title:
    	
Director
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Haode Investment   Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ GUO, Lichun
    
	
 
    	
Name:
    	
GUO, Lichun
    
	
 
    	
Title:
    	
Director
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
Mayer   Investments Fund, L.P.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Mayer Management   GP, Limited
    
	
 
    	
 
    	
Its general   partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sunying Wong
    
	
 
    	
Name:
    	
Sunying Wong
    
	
 
    	
Title:
    	
Director
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
   
    	
STAR GROVE   GLOBAL LIMITED
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paau Siu Wan
    
	
 
    	
Name:
    	
Paau Siu Wan
    
	
 
    	
Title:
    	
Director
    

 

Signature Page

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
   
    	
CAROB INVESTMENT PTE LTD
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Suresh Balasubramanian
    
	
 
    	
Name:
    	
Suresh   Balasubramanian
    
	
 
    	
Title:
    	
Director
    

 

Signature Page

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}]]