SHAREHOLDERSAGREEMENTbyandamongAB,CtheManagementMembers(asdefinedherein)andcertainothershareholdersofAlibaba.comCorporationDatedasofI,2005TableofContentskDefinitions2、CorporateGovernance3xMattersthatRequireApprovaloftheBoardorShareholders4.Restrict!onsonShareTransfer5.VotingAgreement6.PreemptiveRights7.RepresentationsandWarranties
4.Covenants5.GoverningLawandDisputeResolution6.MiscellaneousSCHEDULEA・FINANCIALINVESTORSSCHEDULEB・BCOMPETITORSSCHEDULEC・SHAREOWNERSHIPSHAREHOLDERSAGREEMENTTHISSHAREHOLDERSAGREEMENT(this"Agreementj,datedasofI,2005is
madeandenteredintobyandamongAaCaymanIslandsA(theTV),B,aDelawarecorporation(UBM),C,aJapanesecorporation(“SOFTBANK”)，andcertainmembersofthemanagementoftheAnamedonthesignaturepagehereof,intheirsolecapacityasshareholdersoftheA(collectively,theMManagementMembers”andindividually,aHManagementMember*>)andcertainothershareholdersnamedonthesignaturepagehereof(suchothershareholders,B,CandtheManagementMembersarereferredtohereincollectivelyasthe"Shareholders"andindividuallyasa'Shareholder*)W]INESSEIH:WHEREAS,pursuanttothetermsandconditionsoftheStockPurchaseandContributionAgreement(the'PurchaseandContributionAgreemenf),datedasofAugust10,2005,byandbetweentheAandB,BagreedtotransfertheChinaBusinessandpaytheCashConsiderationtotheAinconsiderationoftheallotmentandissuaneeofthePrimarySharesbytheAtoB;andWHEREAS,theA,theManagementMembers,BandSOFTBANK,andcertainoftheirrespectiveAffiliates,arepartiestooneormoreAnciliaryAgreementsascontemplatedbythePurchaseandContributionAgreement;WHEREAS,theexecutionanddeliveryofthisAgreementbytheShareholdersisaconditionprecedenttotheconsummationofthetransactionscontemplatedbythePurchaseandContributionAgreement.NOW,THEREFORE,inconsiderationofthemutualpromises,covenants,representationsandwarrantiessetforthhereinandthemutualbenefitstobederivedherefrom,thepartiesheretoagreeasfollows:Definitions.ForpurposesofthisAgreement,thefollowingtermshavetheindicatedmeanings,andcapitalizedtermsusedbutnototherwisedefinedhereinshallhavetherespectivemeaningsascribedtotheminthePurchaseandContributionAgreement.AllreferencestoSectionsandSchedulesshallbedeemedreferencestoSectionsofandScheduletothisAgreementunlessthecontextshallotherwiserequire.AdditionalSecurities:asdefinedinSection6.1(a).Affiliate:ofaPersonmeansanotherPersonthatdirectlyorindirectlythroughoneormore
intermediaries,controls,iscontrolledby,orisundercommoncontrolwith,thefirstPerson,includingbutnotlimitedtoaSubsidiaryofthefirstPersonaPersonofwhichthefirstPersonisaSubsidiary,oranotherSubsidiaryofaPersonofwhichthefirstPersonisalsoaSubsidiary.“Controln(includingtheterms“controlledbyVand“undercommoncontrolwith")meansthepossession,directlyorindirectly,ofthepowertodirectorcausethedirectionofthemanagementpoliciesofaperson,whetherthroughtheownershipofvotingsecurities,bycontractorotherarrangement,astrusteeorexecutor,orotherwise・AggregateRemainingShares:asdefinedinSection4.3(d).Board:theboardofdirectorsoftheA.Cause:withrespecttoaperson,(i)grossneglectorfailuretoperformthedutiesandresponsibilitiesofsuchperson'soffice,(jj)failureorrefusaltocomplyinanymaterialrespectwithmaterialandlawfulpoliciesanddirectivesoftheAresultinginmaterialharmtotheAanditsAffiliates,takenasawhole,(m)materialbreachofanycontractoragreementbetweensuchpersonandtheA,ormaterialbreachofanystatutorydutyoranyotherobligationthatsuchpersonowestotheAand/oritsAffiliatesresultinginmaterialharmtotheAanditsAffiliates,takenasawhole,(iv)commissionofanactoffraud,theftorembezzlementagainsttheAand/oritsAffiliatesorinvolvingtheirpropertiesorassets,or(v)convictionornolocontenderepleawithrespecttoanyfelonyorcrimeofmoralturpitude,provided,however,thatwithrespecttoanyoccurreneeofanyof(i),(ii)or(iii),suchpersonshallhavebeengivennotlessthan30dayslwrittennoticebytheBoardoftheBoard'sdetermination(suchdeterminationbeingmadeindependentofsuchperson,ifsuchpersonisaBoardmember)thatsucheventhadoccurred,andsuchpersonshallhaveuntiltheendofsuch30dayperiodfollowingreceiptofsuchnoticetorectifyorcuresuchoccurreneeifsuchoccurreneeiscurablebeforeanyactionpremiseduponadeterminationofCausecanbetaken.ChangeofControlTransactions:(8)thedirectorindirectacquisiWon(exceptfortransactionsdescribedinclause(b)ofthisparagraphbelow),whetherinoneoraseriesoftransactionsbyanyperson(assuchtermisusedinSection13(d)andSection14(d)(2)oftheExchangeAct),orrelatedpersonsconstitutingagroup(assuchtermisusedinRule13d-5undertheExchangeAct),of(i)beneficialownership(asdefinedintheExchangeAct)ofissuedandoutstandingsharesofcapitalstockoftheA,theresultofwhichacquisitionisthatsuchperson
orsuchgrouppossesses25%ormoreofthecombinedvotingpowerofallthen-issuedandoutstandingsharecapitaloftheA,or(n)thepowertoelect,appoint,orcausetheelectionorappointmentofatleastamajorityofthemembersoftheBoard(orsuchothergoverningbodyintheeventtheAoranysuccessorentityisnotacorporation);(b)amerger,consolidationorotherreorganizationorrecapitalizationoftheAwithapersonoradirectorindirectsubsidiaryofsuchperson,providedthattheresultofsuchmerger,consolidationorotherreorganizationorrecapitalization,whetherinoneoraseriesofrelatedtransactions,isthattheholdersoftheoutstandingsharesofcapitalstockoftheAimmediatelypriortosuchconsummationdonotpossess,whetherdirectlyorindirectly,immediatelyaftertheconsummationofsuchtransaction,inexcessof75%ofthecombinedvotingpowerofallthen-issuedandoutstandingcapitalstockofthemerged,consolidated,reorganizedorrecapitalizedperson,itsdirectorindirectparent,orthesurvivingpersonofsuchtransaction;or(c)asaleordisposition,whetherinoneoraseriesoftransactions,ofallorsubstantiallyalloftheA'sassets.Claimant:asdefinedinSection9.2(b).A:asdefinedinthefirstparagraphofthisAgreement.ComplianeeOfficers:asdefinedinSection8.3.ConfidentialInformation:informationdeliveredbyapartytoanotherpartyinconnectionwiththetransactionscontemplatedbyorotherwisepursuanttothisAgreementthatisproprietaryinnatureandthatwasclearlymarkedorlabeledorotherwiseadequatelyidentifiedwhenreceivedbysuchpartyasbeingconfidentialinformationofsuchdeliveringparty,providedthatsuchtermdoesnotincludeinformationthat(a)waspubliclyknownorotherwiseknowntosuchreceivingpartypriortothetimeofsuchdisclosure,(b)subsequentlybecomespubliclyknownthroughnoactoromissionbysuchreceivingpartyoranyPersonactingonsuchparty'sbehalf,or(c)otherwisebecomesknowntosuchreceivingpartyotherthanthroughdisclosurebythedeliveringpartyoranyPersonwithadutytokeepsuchinformationconfidential.Consent:anyconsent,approval,authorization,waiver,permit,grant,franchise,concession,agreement,license,certificate,exemption,order,registration,declaration,filing,reportornoticeof,withortoanyPerson.CoreBusinesses:thecorebusinessesoftheArelatingtosearch,portal,consumere-commerce,business-to-businessandAlipay.
EquitySecurities:anyOrdinarySharesandanyotherequitysecuritiesoftheA,howeverdescribedorwhethervotingornon-voting,ineludingsecuritiesconvertibleorexchangeableinto,andoptions,warrantsorotherrightstoacquire,anyequityinterestsoftheA.ExchangeAct:theUnitedStatesSecuritiesExchangeActof1934,asamended.ExemptedSecurities:(j)issuanceofoptionspursuanttoanyoptionplanorrestrictedsharespursuanttoanyrestrictedshareplanforcompensatorypurposes(whichmaycoverdirectors,officers,employeesand/orconsultants)whichwaseither(x)approvedbytheBoardpriortotheClosingor(y)approvedbytheBoard(ineludingtheapprovaloftheBDesigneeandtheCDesignee)onorsubsequenttotheClosing,andtheissuaneeoftheOrdinarySharesunderlyingsuchoptions;(ji)issuanceofOrdinarySharesuponexerciseofanyoption,rights,warrantsorotherconvertibleinstrumentswhicheitherexistedontheClosingDateortheissuaneeofwhichwaspreviouslysubjecttopreemptiverights;and(iii)issuaneeofOrdinarySharesinconnectionwithasharedividend,sharesplitorsimilareventmadeorpaidprorataonall,andsolelywithrespectto,OrdinaryShares・Expenses:asdefinedinSection2.7(a).FamilyMembers:anychild,stepchild,grandchild,parent,stepparent,grandparent,spouse,sibling,mother-in-law,father-in-law,son-in-law,daughter-in-law,brother-in-law,orsister-in・lawofaPerson,andshallincludeadoptiverelationshipsofthesametype・FinancialInvestors:thefinancialinvestorsoftheAassetforthinScheduleAhereto.FullyDilutedBasis:basedonthetotalnumberofsharesoftherelevantclassofstockortypeofequityinterestthatwouldbeoutstandingontherelevantdateassumingtheexerciseofalloptions,warrantsandotherrightstoacquiresuchrelevantclassofsharesortypeofequityinterest(includingreservedbutunissuedoptionsorotherequityinterestsissuablepursuanttooptionplansorotherequityplansandwithoutregardtoexercisability,vestingorsimilarprovisionsandrestrictionsthereof)andtheconversionorexchangeofallsecuritiesconvertibleintoorexchangeableforsuchsharesorequityinterest(withoutregardtoexercisability,vestingorsimilarprovisionsandrestrictionsthereof)・GAAP:UnitedStatesgenerallyacceptedaccountingprinciples,appliedonaconsistent
basis.GovernmentalApproval:anyConsentofanyGovernmentalAuthority.GovernmentalAuthority:anynationorgovernment,anystateorotherpoliticalsubdivisionthereof;anyentity,authorityorbodyexercisingexecutive,legislative,judicial,regulatoryoradministrativefunctionsoforpertainingtogovemment,ineluding,withoutlimitation,anygovernmentauthority,agency,department,board,commissionorinstrumentalityofanynationoranypoliticalsubdivisionthereof;anycourt,tribunalorarbitrator;andanyself-regulatoryorganization;andanysecuritiesexchangeorquotationsystem.Guarantee:anyobligation，contingentorotherwise,ofanyPersondirectlyorindirectlyguarantee!nginanymanneranyIndebtednessorotherobligationofanyotherPersonandanyobligation,directorindirect,contingentorotherwise,ofanyPerson(i)topurchaseorpay(oradvaneeorsupplyfundsforthepurchaseorpaymentof)suchIndebtednessorotherobligationofsuchotherPerson(whetherarisingbyvirtueofpartnershiparrangements,orbyagreementtokeepwell,topurchaseassets,goods,securitiesorservices,totakeorpay,ortomaintainfinancialstatementconditionsorotherwise)or(ii)enteredintoforpurposesofassuringinanyothermannertheobligeeofsuchIndebtednessorotherobligationofthepaymentthereofortoprotectsuchobligeeagainstlossinrespectthereof(inwholeorinpart).ICC:asdefinedinSection9.2(a).ICPA:meansaPersoncontrolledviacontractualrelationshipssimilartothosegoverninganyoftheChinaICPCompanies,ZhejiangAlibabaE-CommerceCo.,LtdorZhejiangTaoBaoNetworkCo.,Ltd.Indebtedness:asappliedtoanyPerson,means,withoutduplication,(a)allindebtednessforborrowedmoney,(b)allobligationsevidencedbyanote,bond,debenture,letterofcredit,draftorsimilarinstrument,(c)thatportionofobligationswithrespecttocapitalleasesthatisproperlyclassifiedasaliabilityonabalaneesheetinconformitywithGAAP,(d)notespayableanddraftsacceptedrepresentingextensionsofcredit,(e)anyobligationowedforalloranypartofthedeferredpurchasepriceofpropertyorservices,whichpurchasepriceisduemorethansixmonthsfromthedateofincurreneeoftheobligationinrespectthereof,and(f)allindebtednessandobligationsofthetypesdescribedintheforegoingclauses(a)through(e)totheextentsecuredbyanyLienonanypropertyorassetownedorheldbythatPersonregardless
ofwhethertheindebtednesssecuredtherebyshallhavebeenassumedbythatPersonorisnonrecoursetothecreditofthatPerson.IndemnifiableAmounts:asdefinedinSection2.7(a).Indemnitee:asdefinedinSection2.7(a).IPO:afirm-commitmentunderwritteninitialpublicofferingbytheAofitsOrdinarySharesonaninternationallyrecognizedstockexchangeorquotationsystemapprovedbytheBoardwithgrossproceedstotheAofatleastUS$50million.JM:JackMaYun,thefounderandthecurrentChairmanoftheBoardandtheChiefExecutiveOfficeroftheA.ManagementMember(s):asdefinedinthefirstparagraphtothisAgreement.ManagementMemberDesiqnee(s):asdefinedinSection2.3.ManagementMemberEconomicInterestPercentage:thequotientof(x)thenumberofOrdinarySharesownedbyaManagementMember(excludingthoseunderlyingunexercisedstockoptionsorwarrantsorrestrictedsharessubjecttovestingorrepurchase)dividedby(y)thetotalnumberofOrdinarySharesoutstandingattherelevanttime.ManagementMembers1Representative:asdefinedinSection10.2(a).MemorandumandArticles:theMemorandumandArticlesofAssociationoftheA,tobeadoptedandapprovedbytheshareholdersoftheAonorpriortotheClosingDateandfiledwiththeappropriateGovernmentalAuthorityontheClosingDate,intheformofExhibitAattachedtothePurchaseandContributionAgreement.OfferNotice:asdefinedinSection4.3(a).OfferPrice:asdefinedinSection4.3(a).OffereeRemainingShares:asdefinedinSection4.3(d).Offerees:asdefinedinSection4.3(a).OrdinaryShares:theordinarysharesoftheA,parvalueUS$0.0001pershare.OtherShares:anysharesofcapitalstockoftheAthatarenotOrdinarySharesincludingwithoutlimitation,anysecuritiesthatbytheirtermsare,directlyorthroughaseriesofoneormoresteps,convertibleintoorexercisableorexchangeableforanysuchsharesofcapitalstock.own,owned,ownershipandthelike:asSwnecTisdefinedinSection2.9.ParentShareholder:asdefinedinSection2.2(c).Person:anynaturalperson,firm,partnership,association,corporation,A,trustbusiness
trust,GovernmentalAuthorityorotherentity.PreemptiveRights:asdefinedinSection6.1(a).PreemptiveShareAmount:asdefinedinSection6.1(d).PurchaseandContributionAgreement:asdefinedintherecitalsofthisAgreement.PurchasePrice:asdefinedinSection6.1(e).Purchaser:asdefinedinSection4.4(a)QualifyingSale:asdefinedinSection4.4(a).ReivingShareholder:asdefinedinSection2.2(c).ReplacementDirector:asdefinedinSection2.5(d).Request:asdefinedinSection9.2(b).Respondent:asdefinedinSection9.2(b).Rule144:Rule144undertheUnitedStatesSecuritiesActof1933,asamended.SaleNotice:asdefinedinSection4.4(a).SalePrice:asdefinedinSection4.4(a).SaleShares:asdefinedinSection4.4(a).SecondRoundOfferee:asdefinedinSection4.3(d).SeniorEquitySecurities:anyEquitySecuritieswhich,withrespecttovotingrights,dividendrightsorrightsonliquidation,dissolution,windinguporinanyotherrespect,rankseniorto,orhaveanyotherrightsinprefereneeof,theOrdinaryShares,noworhereafterauthorizedbytheA.Shareholder(s):asdefinedinthefirstparagraphofthisAgreement.ShareholdersMeeting:asdefinedinSection2_1・SOFTBANK:asdefinedinthefirstparagraphofthisAgreement.CAffiliate:means,withrespecttoSOFTBANK,anotherPersonthatdirectlyorindirectlythroughoneormoreintermediaries,iscontrolledby,orundercommoncontrolwith,SOFTBANK,ineludingbutnotlimitedtoaSubsidiaryofSOFTBANK,provided,however,that,inadditiontosuchcontrolorcommoncontrol:(1.)Ceither(a)owns,directlyorindirectly,sharecapitalorotherequityinterestsrepresentingmorethan75%oftheoutstandingvotingstockorotherequityinterests(disregard!ng,fortheavoidanceofdoubt,anycarriedinterestorsimilar
economicparticipationrightsofanyPersonformedasafund,providedsuchinterestorrightsdonotconfervotingrightsastothegovernaneeofsuchPersonontheholderthereof)or(b)owns,directlyorindirectly,sharecapitalorotherequityinterestsrepresentingmorethan50%ofsuchoutstandingvotingstockorotherequityinterestsandhastherighttodesignateatleasttwo-thirds(2/3)ofthedirectorsofsuchPerson;and(2)noBCompetitorownsanyvotingstockorotherequityinterestsinsuchPerson(providedfurther,however,thatnochangetothelistofBCompetitorsthatresultsintheinclusionofnewentitlestoScheduleBshalldisqualifyanyPersonfromtreatmentasaCAffiliatetotheextentthatsuchnewlyaddedentityownsanyvotingstockorotherequityinterestsinsuchPersonatthetimeitisaddedtoScheduleB).“Control,”forpurposesofthisdefinition,hasthemeaningsetforthinthedefinitionofAffiliate・CDesianee(s):asdefinedinSection2.3.CEconomicInterestPercentage:thequotientof(x)thenumberofOrdinarySharesownedbyCdividedby(y)thetotalnumberofOrdinarySharesoutstandingattherelevanttime.SubjectShares:asdefinedinSection4.3(a).Subsidiaries:eachcorporationorotherPersoninwhichaPersonownsorcontrols,directlyorindirectly,sharecapitalorotherequityinterestsrepresentingmorethan50%oftheoutstandingvotingstockorotherequityinterests,togetherwithanyICPCompaniescontrolledbysuchPerson.SubstituteDirector:asdefinedinSection2.5(c).Territory:thePeople'sRepublicofChina,excludingHongKong,MacauandTaiwan.Transfer:anysale,transfer,assignment,gift,dispositionof,creationofanyencumbraneeoverorothertransfer,whetherdirectlyorindirectly,ofthelegalorbeneficialownershiporeconomicbenefitsofalloraportionoftheEquitySecurities.Transferor:asdefinedinSection4.3.TransferringShareholder:asdefinedinSection4.4(a).VotingAgreementShares:asdefinedinSection5.3.WithdrawingDirector:asdefinedinSection2.5(c).WrittenConsent:asdefinedinSection2.1.旦:asdefinedinthefirstparagraphofthisAgreement.
BCompetitors:thosePersonssetforthinScheduleBhereto,assuchschedulemaybeamendedonceeverysixmonthsbyB,togetherwiththeAffiliatescontrolledbysuchPersons;provided,that(j)onorpriortotheclosingofanIPO,nomorethan15namesshallappearonsuchscheduleatanytimeand(ij)followingtheclosingofanIPO,nomorethaneightnamesshallappearonsuchscheduleatanytime.BDesiqnee(s):asdefinedinSection2.3.BEconomicInterestPercentage:thequotientof(x)thenumberofOrdinarySharesownedbyBdividedby(y)thetotalnumberofOrdinarySharesoutstandingattherelevanttime.2.CorporateGovernsnee.2.1General.FromandaftertheClosingDate,eachShareholdershallvoteorcausetobevotedallEquitySecuritiesbeneficiallyownedbysuchShareholderatanyannualorextraordinarymeetingofshareholdersoftheA(a"ShareholdersMeeting”)orinanywrittenconsentexecutedinlieuofsuchameetingofshareholders(aWrittenConsenH.andshalltakeallotheractionsnecessary,togiveeffecttotheprovisionsofthisAgreementandtoensurethattheMemorandumandArticlesdonot,atanytimehereafter,conflictinanyrespectwiththeprovisionsofthisAgreementincluding,withoutlimitation,votingtoapproveamendmentsand/orrestatementsoftheMemorandumandArticlesandremovedirectorsthattakeactionsinconsistentwiththisAgreementorfailtotakeactionsrequiredtocarryouttheintentandpurposesofthisAgreement.Inaddition,eachShareholdershallvoteorcausetobevotedallEquitySecuritiesbeneficiallyownedbysuchShareholderatanyShareholdersMeetingoractbyWrittenConsentwithrespecttosuchEquitySecurities,uponanymattersubmittedforactionbytheA'sshareholdersorwithrespecttowhichsuchShareholdermayvoteoractbyWrittenConsent,inconformitywiththespecifictermsandprovisionsofthisAgreementandtheMemorandumandArticles.IntheeventthatthereisanyconflictbetweentheMemorandumandArticlesandthisAgreement,thelattershallprevailandtheShareholders(butnottheA)shalltotheextentnecessary,causethechange,amendmentormodificationoftheMemorandumandArticlestoeliminateanysuchinconsistency.2.2ShareholderActions.(a)InordertoeffectuatetheprovisionsofthisAgreement,andwithoutlimitingthegeneralityofSection2.1,eachShareholder(a)herebyagreesthatwhenanyactionorvoteis
requiredtobetakenbysuchShareholderpursuanttothisAgreement,suchShareholdershalluseitsbesteffortstocall,orcausetheappropriateofficersanddirectorsoftheAtocall,oneormoreShareholdersMeetingstotakesuchactionorvote,toattendsuchShareholdersMeetingsinpersonorbyproxyforpurposesofobtainingaquorum,ortoexecuteorcausetobeexecutedaWrittenConsenttoeffectuatesuchshareholderaction,(b)shalluseitsbesteffortstocausetheBoardtoadopt,eitheratameetingoftheBoardorbyunanimouswrittenconsentoftheBoard,alltheresolutionsnecessarytoeffectuatetheprovisionsofthisAgreementand(c)shalluseitsbestefforts,totheextentnotinviolationofapplicableLaw,tocausetheBoardtocausetheSecretaryoftheA,oriftherebenoSecretary,suchotherofficeroftheAastheBoardmayappointtofulfillthedutiesofSecretary,nottorecordanyvoteorconsentcontrarytothetermsofthisSection2.(a)EachShareholderhasenteredintothisAgreementonbehalfofitselfandonbehalfofeachPersonwhoseEquitySecuritiesareuowned”bysuchShareholderpursuanttoSection2.9(each,a''SubordinateShareholder^).EachShareholdershallcauseitsSubordinateShareholder(s)totakeallactionsnecessarytoperformallobligationshereunder,toperformallobligationshereunder,andtobedeemedtohaveherebymadeallrepresentationsandwarrantieshereunderasifsuchSubordinateShareholderweresuchShareholder.(b)EachShareholder(each,aAReivingShareholder'1)shallbeentitledtorelyuponthedecision,actions,consentsorinstructionsofeachoftheotherShareholdersthathasanySubordinateShareholder(each,aTarentShareholder*^)asbeingthedecision,action,consentorinstructionofeachofsuchParentShareholder'sSubordinateShareholderswithrespecttothisAgreementorwithrespecttoanymatterrelatedhereto.EachRelyingShareholderisherebyrelievedfromanyliabilitytoanyofsuchSubordinateShareholdersforrelyinguponanysuchdecision,action,consentorinstructionofitsParentShareholder.2.1BoardComposition.TheBoardshallinitiallybefour,amongwhich(j)onedirectorshallbeapersondesignatedbyB(theUBDesignee)provided,thataseconddirectorshallbeapersondesignatedbyB(sotwodirectorsintotalshallbepersonsdesignatedbyB)intheeventCnoIongerhastherighttodesignateadirectorpursuanttosubclause(iii)ofthisSection2.3,provided,further.BshallonlyhavetherighttodesignateadirectorordirectorsforsolongasBownsatleast37.5%ofthenumberoftheEquitySecuritiesitownsasoftheClosingDate,(ii)
twodirectorsshallbepersonsdesignatedbytheManagementMembers(eachauManagementMemberDesianee”andcollectively,the“ManaaementMemberDesianeesj:provided,thatintheeventtheManagementMembers,collectively,ownlessthan25%ofthenumberofEquitySecuritiestheyownasoftheClosingDate,onlyonedirectorshallbedesignatedbytheManagementMembersandtheManagementMemberswillcontinuetohavetherighttodesignateatleastonedirectorontheBoardaslongasJMownsoneshareofEquitySecurityoftheA,and(iii)onedirectorshallbeapersondesignatedbyC(theXDesianee”)・provided,thatCwillnoIongerhavetherighttodesignateadirectorontheBoardintheeventitceasestoownatleast50%ofthenumberofEquitySecuritiesitownsasoftheClosingDate.FromandafterthefifthanniversaryofthedateofthisAgreement,Bshallhavetherighttodesignateanumberofdirectorsequaltothegreaterof(i)thenumberofdirectorsthatBwouldotherwisebeentitledtodesignateasofsuchdateunderthisAgreementand(n)thenumberofdirectorsthattheManagementMembersareentitledtodesignateasofsuchdateunderthisAgreement.WithoutlimitingthegeneralityoftherequirementsofSections2.1and2.2,theShareholderswilltakeallactionsnecessarytoeffecttheprovisionsofthisSection2.3,includingamendingtheMemorandumandArticlestoincreaseordecreasethenumbersofdirectorsontheBoardandelectingorremovingdirectors.2.1IPOandStockExchangeRules.TheShareholdersherebyagreethatitistheirmutualintenttocompleteanIPOassoonaspracticable,subjecttomarketconditions.IntheeventtheAisrequiredbytherulesofaninternationallyrecognizedstockexchangeorquotationsystemonwhichtheAwilllistitsOrdinarySharesupontheIPOtoexpandthenumberofdirectorsontheBoardinordertocomplywithindependenceorothercomparablerequirementsofsuchexchangeorquotationsystem,theShareholdersagreetovoteinfavorofsuchexpansionsoastocomplywiththerequirementsofsuchrules.TheShareholdersherebyagreetoamendtheMemorandumandArticlespriortotheIPOifandtotheextentrequiredtocomplywithcorporategovernanceandrelatedrequirementsoftherulesofaninternationallyrecognizedstockexchangeorquotationsystemonwhichtheAwilllistitsOrdinarySharesupontheIPO.2.2OfficeandExperises:Removal:Replacement.
(a)AlldirectorsdesignatedpursuanttothisAgreementshallholdofficeuntiltheirrespectivesuccessorsshallhavebeenappointed・TheAshallprovidetosuchdirectorsthesameinformationconcerningtheAanditsSubsidiaries,andaccesstoinformation,providedtoallothermembersoftheBoard・ThereasonabletravelexperisesincurredbyanysuchdirectorinattendinganymeetingsoftheBoardshallbereimbursedbytheAtotheextentconsistentwiththeA'sthenexistingpolicyofreimbursingdirectorsgenerallyforsuchexpenses・(b)Notwithstandinganythinghereintothecontrary,theShareholdersshallexercisetheirpowerinrelationtotheAtoensurethat,(j)BshallhavethesoleandexclusivepowertoremoveandreplaceanyBDesigneefromtheBoard,withorwithoutcause,(n)theManagementMembersshallhavethesoleandexclusivepowertoremoveanyManagementMemberDesigneefromtheBoard,withorwithoutcause,and(iii)CshallhavethesoleandexclusivepowertoremovetheCDesigneefromtheBoard,withorwithoutcause;provided,however,thatatsuchtimeasB,theManagementMembersorCisnoIongerentitledtodesignateadirectorordirectorspursuanttoSection2.3,theShareholdersshallexercisetheirpowerinrelationtotheAtoensurethatanydirectorthenholdingofficewhowasdesignatedbyB,theManagementMembersorSOFTBANK,respectively,shallautomaticallyandimmediately,withoutanyfurtheraction,beremovedfromtheBoard,includinganycommitteesthereof;provided,furtherthat,ifatsuchtimetherearetwoBDesigneesand/ortwoManagementMembersDesigneesontheBoardandBortheManagementMemberslosetherighttodesignateonesuchmember,BortheManagementMembers,Representative,asappropriate,shalldesignatewhichdirectorshallberemoved・(c)Ifanydirector(a''WithdrawingDirect。广)desigmatedinthemannersetforthinSection2.3aboveisunabletoserve,oroncehavingcommeneedtoserve,isremoved,withdrawsfromtheBoardordiesorbecomesincapacitated,suchWithdrawingDirector'sreplacement(the''SubstituteDirectorV)ontheBoardwillbedesignatedbythepartyorpartieswhodesignatedtheWithdraw!ngDirector,subjecttoSection2.3hereof.TheShareholdersshallexercisetheirpowerinrelationtotheAtoensurethatsuchSubstituteDirectoriselected.NomeetingoftheBoardshallbeheldpendingreplacementofanyWithdrawingDirectorwithouttheconsentoftheShareholderentitledtonametheSubstituteDirectorunlesssuchShareholder
shallhavefailedtonameaSubstituteDirectorwithin30daysaftertheremoval,withdrawal,deathorincapacitationofsuchWithdrawingDirector.(a)IfanyShareholderentitledtodesignateadirectorordirectorspursuanttothisAgreementfailstodesignateanydirectorordirectorsandsuchdirectorshipordirectorshipsshallhavebeenvacantforsixty(60)days,theotherShareholdersmayappointadirector(the^ReplacementDirector")untilanewdirectorisdesignatedbytheShareholderwhoisoriginallyentitledtodesignatesuchdirector,whereupontheReplacementDirectorshallberemoved.SubjecttoSection2.4,ifanyShareholderlosesitsrighttodesignateoneormoredirectorspursuanttoSection2.3,thesizeoftheBoardshallautomaticallyandimmediately,withoutfurtheraction,bedecreasedbyoneforeachsuchrightthathasterminated・2.1Meetings.ThepartiesheretowillcausetheBoardtomeetatleastonceeveryquarter.AquorumoftheBoardshallconsistofatleastamajorityofalldirectorsandshallincludeatleast(j)oneBDesignee,forsolongasBhasdesignatedadirector;(ij)oneManagementMemberDesignee,forsolongastheManagementMembershavedesignatedadirectorand(]ii)oneCDesignee,forsolongasChasdesignatedadirector,ineachcaseinaccordaneewithSection2.3.ResolutionsoftheBoardanditscommittees(ifany)shallbeadoptedbyamajorityofthemembersoftheBoardandsuchcommittees,exceptasotherwiseexpresslyprovidedinthisAgreement.AnydirectormaycallaspecialmeetingoftheBoard・2.2Indemnification.(a)TheAshallindemnifyandholdharmlesseachdirectordesignatedpursuanttoSection2.3(eachanTndemnitee”)whowasorisapartyoristhreatenedtobemadeapartytoanythreatened,pendingorcompletedaction,suitorproceeding,whethercivil,criminal,administrativeorinvestigativebyreasonofthefactthatheisorwasadirectoroftheA,orisorwasadirectoroftheAservingattherequestoftheAasadirectorofanotherA,partnership，jointventure,trust,employeebenefitplanorotherentityorenterprise,tothefullestextentpermittedbyLawagainstallexpenses,costsandobligations(includingwithoutlimitation,attorneyslfees,experts1fees,courtcosts,retainers,transcriptfees,duplicating,printingandbindingcosts,aswellastelecommunications,postageandcouriercharges)(“Expenses”)，
damages,judgments，fines,penalties,excisetaxesandamountspaidinsettlement(ineludingallinterest,assessmentsandotherchargespaidorpayableinconnectionwithorinrespectofsuchexpenses,judgments,fines,penalties,excisetaxesoramountspaidinsettlement)actuallyandreasonablyincurredbyhimorherinconnectionwithsuchaction,suitorproceeding"IndemnifiableAmounts51)ifheorsheactedingoodfaithandinthebestinterestsoftheAinaccordaneewithhisorherfiduciarydutytotheA・(a)IfsorequestedbyIndemnitee,theAmayadvaneeanyandallExperisesincurredbyIndemnitee,eitherby(j)payingsuchExpensesonbehalfofIndemnitee，or(ii)reimbursingIndemniteeforsuchExpenses.(b)IfIndemniteeisentitledunderanyprovisionofthisAgreementtoindemnificationbytheAforsomeoraportionoftheExpensesorotherIndemnifiableAmountsinrespectofaclaimbutnot,however,forallofthetotalamountthereof,theAshallindemnifyIndemniteefortheportionthereoftowhichIndemniteeisentitled.(c)ForpurposesofthisAgreement,theterminationofanyclaim,action,suitorproceed!ng,byjudgment,order,settlement(whetherwithorwithoutcourtapproval)orconviction,oruponapleaofnolocontendere,oritsequivalent,shallnotcreateapresumptionthatIndemniteedidnotmeetanyparticularstandardofconductorhaveanyparticularbelieforthatacourthasdeterminedthatindemnificationisnotpermittedbyapplicableLaw.(d)TherightsoftheIndemniteehereundershallbeinadditiontoanyotherrightsIndemniteemayhaveundertheMemorandumandArticlesorotherwise.TotheextentthatachangeinapplicableLawpermitsgreaterindemnificationbyagreementthanwouldbeaffordedcurrentlyundertheMemorandumandArticles,itistheintentofthepartiesheretothatIndemniteeshallenjoybythisAgreementthegreaterbenefitssoaffordedbysuchchange.(e)Indemniteesareexpresslymeanttobethird-partybeneficiariesofthisSection2.7.2.1ParticipationinMeetings:Notice・MembersoftheBoardoranycommitteethereofshallbeaffordedtheopportunityto,andmayparticipateinameetingoftheBoardorsuchcommitteebymeansofconferencetelephone,videoconfereneeorsimilarcommunicationsequipmentbymeansofwhichallpersonsparticipatinginthemeetingcanheareachotherandparticipationinameetingpursuanttothisprovisionshallconstitutepreseneeinpersonatsuch
meeting.Aresolutioninwriting(inoneormorecounterparts),andsignedbyallthedirectorsforthetimebeingorallthemembersofacommitteeofdirectors(analternatedirectorbeingentitledtosignsuchresolutiononbehalfofhisappointor)shallbeasvalidandeffectiveasifithadbeenpassedatameetingofthedirectorsorcommittee,asthecasemaybe,dulyconvenedandheld.Subjecttothenextsentence,allmeetingsoftheBoardshallbehelduponatleastthreeBusinessDays*noticetoalldirectorsandtoeachShareholderentitledtodesignateadirector.Noticeofameetingneednotbegiventoanydirectorwhosignsawaiverofnoticeoraconsenttoholdingthemeetingoranapprovaloftheminutesthereof,whetherbeforeorafterthemeeting,orwhoattends(bywhateverpermittedmeans)themeetingwithoutprotest!ng,priortoitscommencement,thelackofnoticetosuchdirector.Allsuchwaivers,consentsandapprovalsshallbefiledwiththeArecordsormadeapartoftheminutesofthemeeting.MeetingsoftheBoardmaybeheldatanyplacewhichhasbeendesignatedinthenoticeofthemeetingoratsuchplaceasmaybeapprovedbytheBoard.2.1DeterminationofShareOwnership.ThroughoutthisAgreement,forpurposesofdeterminingthenumberorpercentageofEquitySecuritiesowned(uownecT),(a)withrespecttoB,suchnumberorpercentageshallineludeanyEquitySecuritiesownedbyBoranyofB'swholly-ownedSubsidiaries(including,fortheavoidanceofdoubt,theVotingAgreementShares),(b)withrespecttoSOFTBANK,suchnumberorpercentageshallincludeanyEquitySecuritiesheldbyanyofSOFTBANK'Swholly-ownedSubsidiariesoranyCAffiliateand(c)withrespecttoeachManagementMember,suchnumberorpercentageshallincludeanyEquitySecuritiesheldbyanyofsuchmember'sFamilyMembers,trustsformedbysuchmemberforthebenefitofhimselforhisFamilyMembers,familylimitedpartnershipsandotherentitiesformedforthesolebenefitofsuchManagementMemberandhisFamilyMembers.Allnumberscontainedhereinshallbeadjustedappropriatelyforstocksplits,stockdividends,reversesplits,recombinationsandthelike.3.MattersthatRequireApprovaloftheBoardorShareholders・3.1MattersthatRequireApprovaloftheMajorityoftheBoard.ExceptwiththepriorapprovalofatleastamajorityofthedirectorsatameetingoftheBoard,theAwillnot,andnoneoftheA5sSubsidiarieswill,takeanyofthefollowingactions:
(a)subjecttoSection8.2,appointorremovetheChiefExecutiveOfficeroftheA;(b)approvetheannualstrategicplanandbudgetoftheAormakeorcommittomaterialexpendituresoractivitiesoutsideofthatplanandbudget;(c)materiallychange,amendormodifythescopeoftheAJsoperationsorbusiness(ineluding,fortheavoidanceofdoubt,theactionssetforthinSection3.3(c)hereof);(d)enterintoanytransactionorseriesofrelatedtransactionsinvolvingthedisposition,saleorothertransferoftheassets(includingsecuritiesofSubsidiaries)orpropertiesoftheAoranyofitsSubsidiariesinanamountexceedingUS$10millioninasingletransactionorseriesofrelatedtransactionsorUS$50milliononanaggregatebasis,withinanytwelve(12)monthperiod;(e)enterintoanytransactionorseriesofrelatedtransactionsinvolvingthepurchaseoracquisitionofassets(includingsecuritiesofSubsidiaries)orpropertiesinanamountexceedingUS$10millioninasingletransactionorseriesofrelatedtransactionsorUS$50milliononanaggregatebasis,withinanytwelve(12)monthperiod;(f)incuranyIndebtednessorprovideGuaranteesinanamountexceedingUS$10millioninasingletransactionorseriesofrelatedtransactionsorUS$50milliononanaggregatebasis,withinanytwelve(12)monthperiod(exclusiveoftheIndebtednessandGuaranteesthathavebeenineludedinthebudgetapprovedbytheBoard);(g)issueanyEquitySecuritiesoftheAotherthanSeniorEquitySecurities;(h)appointorterminatetheAJsauditors;(i)declareorpayanydividendormakeanydistributiononorwithrespecttotheEquitySecurities(ineluding,withoutlimitation,bywayofrepurchase);or(j)makeanyfilingfortheappointmentofareceiveroradministratorforthewindingup,liquidation,bankruptcyorinsolvencyoftheAoranyofitsSubsidiariesorotherwisepursuebankruptcyorinsolvencyproceedings,unlessotherwiserequiredbyapplicableLaw.3.1MattersthatRequireApprovaloftheMajorityoftheBoardIncludingBDesignee.ForsolongasBhastherighttodesignateatleastoneBDesignee,exceptwiththepriorapprovalofatleastamajorityofthedirectors,ineludingtheBDesigneeifany,atameetingoftheBoard
,theAwillnot,andnoneoftheA'sSubsidiarieswill,takeanyofthefollowingactions:(a)incuranyIndebtednessorprovideGuaranteesinanamountexceedingUS$100millioninasingletransactionorUS$175milliononanaggregatebasis,withinanytwelve(12)monthperiod;or(b)issueanySeniorEquitySecuritiesthatareseniortotheEquitySecuritiesheldbyB.3.1MattersthatRequiretheApprovalofB.ExceptwiththepriorwrittenapprovalofB,theAwillnottakeanyofthefollowingactions:(a)amendormodifytheMemorandumandArticles,otherthaninthemannerandforthepurposescontemplatedinSection2.4hereof;(b)increaseordecreasethenumberofdirectorsoftheBoard,otherthanpursuanttoSections2.3,2.4and2.5(d)hereof;or(c)expandintoorenteranewlineofbusinessoutsideoftheTerritory,whichnewlineofbusinessis(i)outsidethescopeoftheexistingscopeofbusinessoftheAassuchbusinessexistsimmediatelybeforetheclosingunderthePurchaseandContributionAgreementwithoutgivingeffecttothetransactionscontemplatedtherebyor(n)anInternet-basedconsumerbusiness(otherthanapeer-to-peerpaymentsbusinessandauctionsbusiness(whichshallnotbesubjecttosuchapproval));provided,however,that(j)theapprovalrightofBunderparagraph(a)ofthisSection3.3shallterminateintheeventBceasestoownatleastfifteenpercent(15%)oftheissuedandoutstandingvotingsharesoftheA;and(ii)theapprovalrightofBunderparagraphs(b)and(c)ofthisSection3.3shallterminateintheeventBceasestoownatleastone-thirdofthenumberoftheEquitySecuritiesBownsasoftheClosingDate.3.4MattersthatRequireApprovalofEachofB.theManagementMembers1RepresentativeandSOFTBANK.ExceptwiththepriorwrittenapprovalofeachofB,CandtheManagementMembers'Representative,theAwillnot,andnoneoftheA'sSubsidiarieswill,takeanyofthefollowingactions:(a)enterintoanydispositiontransact!onsrelatingtoanyoftheA'sCoreBusinesses;or(b)enterintoanyChangeofControlTransactionswithanypartythatisnotalsoapartytothisAgreement,provided,however,that(])theapprovalrightofBunderthisSection3.4shallterminatein
theeventBceasestoownatleastone-thirdofthenumberoftheEquitySecuritiesBownsasoftheClosingDate;(ii)theapprovalrightoftheManagementMembers5RepresentativeunderthisSection3.4shallterminateintheeventtheManagementMembersceasetoownintheaggregateatleastone-thirdofthenumberoftheEquitySecuritiestheManagementMembersownintheaggregateasoftheClosingDate;and(iii)theapprovalrightofCunderthisSection3.4shallterminateintheeventCceasestoownatleastfiftypercent(50%)ofthenumberoftheEquitySecuritiesCownsasoftheClosingDate.3.3MattersthatRequireApprovalofDisinterestedDirectorsoftheBoard・Except(a)withthepriorapprovalofamajorityofthedisinteresteddirectorsoftheBoardor(b)pursuanttothisAgreement,theAwillnot,andnoneoftheA*sSubsidiarieswill,enterintoorengageinanytransactionoragreementtowhichtheAoranyoftheA'sSubsidiaries,ontheonehand,andanyoftheShareholdersoranyoftheirrespectiveSubsidiaries,AffiliatesorFamilyMembers,ontheotherhand，arepartiesorreceiveanydirectorindirecteconomicorotherbenefit(excepttotheextentoftheirproratashareinabenefitaccruingtoallholdersofOrdinaryShares).3.4FormationandAssignmentofAuthoritytoaCommitteeoftheBoard・TheBoardshallestablishanycommitteesasitdeemsnecessaryorappropriate,butonlywiththeapprovalofatleastoneBDesignee,oneManagementMemberDesigneeandtheCDesignee・EachsuchcommitteeshallconsistofatleastoneBDesignee,oneManagementMemberDesigneeandtheCDesignee.EachsuchcommitteeshallexercisethosepowersoftheBoarddelegatedtoitbytheBoard.IntheeventtheAisrequiredbytherulesofaninternationallyrecognizedstockexchangeorquotationsystemonwhichtheAwilllistitsOrdinarySharesupontheIPOtoexpandorotherwisereconstitutethenumberofmembersontheBoard'scommitteesorotherwisereconstitutesuchcommitteesinordertocomplywithindependenceorothercomparablerequirementsofsuchexchangeorquotationsystem,thedirectorsoftheBoardshallvoteinfavorofsuchexpansionorreconstitutionsoastocomplywiththerequirementsofsuchrules・4.RestrictionsonShareTransfer.4.1RestrictionsonTransfer.(a)NoShareholdershallTransferanyEquitySecuritiesitownswithintheone-yearperiod
beginningontheClosingDate.Inaddition,noShareholdershallTransferanyEquitySecuritiestoaBCompetitorwithoutthepriorwrittenapprovalofB,provided,however,thatfollowingthecompletionoftheIPO,aShareholdershallbepermitted,subjecttoSection4.3,toTransferEquitySecuritiesfromtimetotimein(j)blocktradesorotherwiseontheopenmarket(whetherpursuanttoRule144orotherwise),providedthatsuchShareholderdoesnotknoworhavereasontobelievethatthepurchaserofsuchEquitySecuritiesisaBCompetitorandthatanysuchTransferisnotdonewiththeintent,directlyorindirectly,toTransfersuchEquitySecuritiestoaBCompetitorortheknowledgethatthepurchaserofsuchEquitySecuritiesisaBCompetitor;provided,further,thatifsuchsaleistobemadeinablocktradetoafinancialinstitutionwhowillresellsuchEquitySecurities(x)priortoclosingsuchtrade,suchShareholdershallobtaintheagreementofsuchfinancialinstitutionnottosellsuchEquitySecuritiestoanyBCompetitorwhichagreementshallnameBasathird-partybeneficiaryentitledtoenforcesuchprovisionand(y)notwithstandinganythingcontainedhereintothecontrary,iftheShareholderobtainssuchagreementfromthefinancialinstitution,suchShareholdershallbeconclusivelypresumedtohaveTransferredsuchEquitySecuritiesincomplianeewiththisSection4.1(a)or(n)onanyprimarysecuritiesexchangeorquotationsystembyorthroughwhichsuchEquitySecuritiesaretraded.(a)TheBCompetitorstowhomaShareholdermaynotTransferanyEquitySecurities,exceptasprovidedinSection4.1(a)hereof,shallbelistedonScheduleBhereto・ThelistofBCompetitors,whichshallnumbernomorethan(j)fifteen(15)onorpriortotheclosingofanIPO,and(n)eight(8)followingtheclosingofanIPO,onScheduleBhereto,maybeupdatedbyBnomorethanonceeverysixmonths.Inaddition,attheA'srequestinconnectionwithaproposedIPO,BshallpromptlyrevisethelistofBCompetitorstoimplementareductioninnumberoflistedentitiesfifteen(15)toeight(8),effectiveupontheclosingoftheIPO.Fortheavoidaneeofdoubt,thelistofBCompetitorsforpurposesofanysaleastowhichanOfferNoticehasbeenprovidedtoBpursuanttoSection4.3(a)shallbefixedasofthedateofsuchnotice,andnosubsequentchangeinthelistofBCompetitorswilllimitorotherwiseaffectinanyrespecttheabilityofanotherShareholderoftheAtoconsummatesuchsale・
4.1CertainPermittedTransfers.SubjecttoSection4.1,eachofB,theManagementMembersandCmayTransferitsEquitySecuritiestoitsdirectorindirectwholly-ownedSubsidiaries(orFamilyMembersincaseofManagementMembers)atanytime;provided,however,thatanysuchtransfereeshallatalltimescontinuetobeadirectorindirectwholly-ownedSubsidiaryofsuchPerson(ifnotanindividual)andthatsuchtransfereebecomesapartytothisAgreementpursuanttoaninstrumentsatisfactorytoeachoftheManagementMembers1Representative,BandSOFTBANK・SubjecttoSection4.1,CmayTransferEquitySecuritiestoaCAffiliate;provided,however,that20BusinessDayspriortosuchTransferCshallprovidewrittennoticetoManagementMembers1RepresentativeandBofsuchintenttoTransfer,andthenameandsuchotherdetailsconcerningsuchCAffiliateasBortheAmayreasonablyrequest;andprovidedfurther,thatanysuchtransfereeshallatalltimescontinuetobeaCAffiliateandthatsuchtransfereeshallbecomeapartytothisAgreementpursuanttoaninstrumentsatisfactorytoboththeManagementMembers'RepresentativeandB.4.2RightofFirstOffer.SubjecttoSection4.1andSection7.1,andexceptasotherwiseallowedunderSection4.2,noShareholder(theuTransfero门may,atanytime,TransferanyEquitySecuritieslegallyorbeneficiallyheldbyit,exceptpursuanttothefollowingprovisions:(a)PriortoconsummatinganysuchTransferoftheEquitySecurities,theTransferorshalldeliverawrittennotice(the'“OfferNotice")toeachotherShareholder(the“Offerees”),settingforthitsbonafideintentiontoTransferEquitySecuritiestoathirdparty,thenumberofEquitySecuritiestobeTransferred(the“SubjectShares,thepriceatwhichsuchTransferorwishestoselltheSubjectShares(the“OfferPrice)andanyothertermsoftheoffer.(b)TheOfferNoticeshallconstitute,foraperiodof15daysfromthedateonwhichitshallhavebeendeemedgiven,anirrevocableandexclusiveoffertoselltoeachOfferee(oranydirectorindirectwholly-ownedSubsidiarydesignatedbyanOfferee),attheOfferPrice,aportionoftheSubjectSharesnotgreaterthantheproportionthatthenumberofEquitySecuritiesownedbysuchOfferee(andallAffiliatesthereof)bearstothetotalnumberofEquitySecuritiesownedbyalltheOfferees(andAffiliatesthereof)・(c)EachOfferee(oradesignateddirectorindirectwholly-ownedSubsidiarythereof)mayaccepttheoffersetforthinanOfferNoticebygivingnoticetotheTransferor,priortothe
expirationofsuchoffer,specifyingthemaximumnumberoftheSubjectSharesthattheOffereewishestopurchase・(a)IfoneormoreOffereesdonotagreetopurchasealloftheSubjectSharestowhichsuchOffereesareentitled(suchsharesnotpurchased,theAOffereeRemainingShareswandtogetherwithOffereeRemainingSharesofallotherOfferees,the“AaareaateRemaininaShares”)，theTransferorshallpromptlysonotifyeachOffereethathasagreedtopurchasealloftheSubjectSharessoentitled(eachauSecondRoundOfferee”)，suchnoticetoconstituteanoffertosell,irrevocableforfifteen(15)days,toeachsuchOfferee,attheOfferPrice,aportionoftheAggregateRemainingSharesnotgreaterthantheproportionthatthenumberofEquitySecuritiesownedbysuchtheSecondRoundOffereebearstothetotalnumberofEquitySecuritiesownedbyalloftheSecondRoundOfferees・EachSecondRoundOffereeshallnotifytheTransferor,priortotheexpirationofsuchoffer,specifyingthenumberofAggregateRemainingSharesthatsuchOffereeagreestopurchase.(b)IftheOffereesintheaggregateagreetopurchaseanyoralloftheSubjectSharespursuanttothisSection4.3,theyshallpayincashorimmediatelyavailablefundsforandtheTransferorshalldelivervalidtitleto,freeandclearofanyLien,suchSubjectShares,subjecttoreceiptofanynecessaryoradvisablethirdpartyapprovalsoranyGovernmentalApprovals,withinfifteen(15)daysfollowingcompletionoftheproceduressetforthinsubsection(b)and(d)hereof.(c)IftheoffersmadebytheTransferortotheOffereespursuanttosubsections(b)and(d)hereofexpirewithoutanagreementbyoneormoreOffereestopurchasealloftheSubjectShares,theTransferorshallhavesixty(60)daystoenterintoadefinitiveagreementwithrespecttosuchTransferandninety(90)daystoeffecttheTransferofthebalanceoftheSubjectSharestoanythirdpartyorparties,forcash,atapricenotlessthantheOfferPrice,andupontermsnototherwisemorefavorabletothetransfereeortransfereesthanthosespecifiedintheOfferNotice,subjecttotheexecutionanddeliverybysuchthirdpartyofanassignmentandassumptionagreement,informandsubstaneesatisfactorytotheotherShareholders,pursuanttowhichsuchthirdpartyshallassumealloftheobligationsofapartypursuanttoorunderthisAgreement.IntheeventsuchTransferisnotconsummatedwithinsuchninety(90)dayperiod,
theTransferorshallnotbepermittedtosellitsEquitySecuritiespursuanttothisSection4.3withoutagaincomplyingwitheachoftherequirementsofthisSection4.3;provided,thatsuchninety(90)dayperiodshouldbeextendedautomaticallyasnecessary(i)toapplyforandobtainanyGovernmentalApprovalsthatarerequiredtoconsummatesuchTransfer,solongastheTransferorismakinggoodfaitheffortstoobtainsuchGovernmentalApprovalsassoonaspracticableinaccordancewithapplicableLawand(N)intheeventthatSection4.4,4.5,4.6or4.7applies,tocompletetheprocedureasprovidedtherein.Ifthereissuchextension,therelevantperiodwillendonthefifthBusinessDayfollowingthereceiptofsuchGovernmentalApprovals・(a)TheprovisionsofthisSection4.3shallcontinuetobeeffectivefollowingthecompletionofanIPO;providedthat,followingthecompletionoftheIPO,(i)thisSection4.3shallnotapplytoanysaleofanyEquitySecuritiesontheprimarysecuritiesexchangeorquotationsystembyorthroughwhichsuchEquitySecuritiesaretraded,byanyManagementMemberinanamountgeneratinggrosssaleproceedstosuchManagementMemberofnotmorethanUS$1.0millionduringanytwelve-monthperiod,and(u)iftheproposedTransferwouldbeablocktradeorotherwiseontheopenmarket(whetherpursuanttoRule144orotherwise),includingwithoutlimitationablocktradetoafinancialinstitutionwhowillresellsuchEquitySecuritiesasdescribedinSection4.1(a),then(x)theOfferNoticeshallsetforththeTransferor'sintentiontosellontheopenmarketinadditiontothemattersrequiredtobesetforthpursuanttoSection4.3(a)and(y)notwithstandinganythingtothecontraryinSections4.3(b)and(a),anOfferee'snoticesettingforthitsintentiontoaccepttheoffermustbedeliveredtotheTransferorwithinseventy-twohoursofreceiptoftheOfferNotice,andifanOffereefailstodeliversuchnoticewithinsuchperiod,theOfferingNoticegiventosuchOffereeshallexpireuponexpirationofsuchperiodand(z)Section4.3(d)shallnotapply.(b)Notwithstandingtheforegoing,andwhetherornotanIPOiscompleted,eachShareholder'srightoffirstoffersetforthinthisSection4.3shallterminateintheeventsuchShareholderceasestoownatleast50%oftheEquitySecuritiesownedbysuchShareholderasoftheClosingDate.4.4Tag-AlongRightsofFinancialInvestors.SubjecttoSection4.1andexceptasotherwiseallowedunderSection4.2,neitherBnorCmayTransfer80%ormoreoftheEquity
Securitiesthenownedbyit(inasingletransactionoraseriesofrelatedtransactions),exceptpursuanttothefollowingprocedures:(a)Atleastthirty(30)dayspriortomakingsuchTransfer(eachsuchTransfer,uQualifvinaSale”)・BorC(asthecasemaybe),togetherwiththeirwholly-ownedSubsidiariesorCAffiliates,asapplicable(theuTransferringShareholder”)shalldeliverawrittennotice(the“SaleNotice”)toeachoftheFinancialInvestors.TheSaleNoticeshallsetforthinreasonabledetail(i)theidentityoftheprospectivetransferee(the“Purchaser"(n)thenumberofEquitySecuritiestobepurchasedbythePurchaser(suchshares,the“SaleShares”),(m)theprice(the“SalePrice”)pershareoftheSaleShares,Qv)theproposedclosingdateandtimeofsuchTransfer,(v)thenumberofEquitySecuritiesownedbytheTransferringShareholderonthedateoftheSaleNoticeand(vj)anyothermaterialtermsandconditionsoftheproposedTransfer.If,afterdeliveryofanySaleNotice,anytermsetforthinclauses(i)through(vi)oftheprecedingsentenceshouldchangeinanymaterialrespect,theTransferringShareholdershalldeliveranewSaleNoticeincorporatingsuchchangedterms,andtheprovisionsofthisSection4.4shallapplyinallrespectstosuchrevisedSaleNotice・(b)EachFinancialInvestorshallhavetherighttoparticipateintheQualifyingSaleandtorequesttoselltothePurchaser,andtheTransferringShareholdershallupontherequestofsuchFinancialInvestorrequestthatthePurchasertopurchasefromsuchFinancialInvestor,onthesametermsandconditionsofferedtotheTransferringShareholderbythePurchaserattheSalePrice,anumberofEquitySecuritiesupto(i)thenumberoftheSaleSharesmultipliedby(ii)afraction,thenumeratorofwhichshallbetheaggregatenumberofEquitySecuritiesownedbysuchFinancialInvestoronthedateoftheSaleNoticeandthedenominatorofwhichshallbethenumberofEquitySecuritiesownedintheaggregatebytheTransferringShareholderandalltheFinancialInvestorsonthedateoftheSaleNotice.(c)EachoftheFinancialInvestorsmayexerciseitstag-alongrightsunderthisSection4.4bydeliveringanirrevocablewrittennoticetotheTransferringShareholderandtheAnolaterthanthirty(30)daysafterreceiptoftheSaleNotice(includingwithoutlimitation,arevisedSaleNoticecontemplatedbySection4.4(a))settingforththenumberofEquitySecuritiesitelectstosellintheQualifyingSale・NoexerciseofrightswithrespecttoaSaleNoticeshallbindany
FinancialInvestorwithrespecttoanysubsequentrelatedrevisedSaleNoticeservedonsuchFinancialInvestorpursuanttothelastsenteneeofSection4.4(a).(a)IfanyoralloftheFinancialInvestorshaveelectedtoexercisetheirtag-alongrightshereunderpursuanttoSection4.4(c)above,theTransferringShareholdershallnotconsummateanyQualifyingSaleunlessthePurchasershallhaveconcurrentlypurchasedfromsuchFinancialInvestorsthenumberofEquitySecuritiesassetforthinthewrittennoticefromtheFinancialInvestorsasprovidedinSection4.4(c)above,onthesamedateandatthepricedescribedunderSection4.4(b)and,onthesametermsandconditionsandsuchothertermsandconditionsasmayberequiredbyapplicableLawtoallowsuchFinancialInvestorstoselltheirEquitySecuritiestothePurchaser.Inanyevent,subjecttoreceiptofanynecessaryoradvisablethirdpartyapprovalsorGovernmentalApprovals,theclosingshalloccurwithinsixty(60)daysofthereceiptoftheSaleNotice,provided,thatifanyrevisedSaleNoticeisdeliveredascontemplatedbythelastsentenceofSection4.4(a)thentheclosingshalloccurwithinsixty(60)daysofthereceiptofthelastsuchrevisedSaleNotice・4.3Taa-AIongRightsofB・SubjecttoSection4.1andexceptasotherwiseallowedunderSection4.2,theManagementMembers(asagroupandincludinganyEquitySecuritiesownedbyanyofsuchmember'sFamilyMembers,trustsformedbysuchmemberforthebenefitofhimselforhisfamilymember,andothercomparableentities)andCmaynot,together,Transfer80%ormoreoftheircollectivelegalorbeneficialownershipinterestintheEquitySecuritiesownedbytheminasingletransactionorseriesofrelatedtransactions,exceptpursuanttothefollowingprocedures:(a)Atleastthirty(30)dayspriortomakingsuchTransfer(an“M&SSale”)，theManagementMembersandCortheirwholly-ownedSubsidiariesorCAffiliates(asthecasemaybe)(the“M&STransferors")shalldeliverawrittennotice(the“M&SSaleNotice")toB.TheM&SSaleNoticeshallsetforthinreasonabledetail(a)theidentityoftheprospectivetransferee(theUM&SPurchaser1'),(n)thenumberofEquitySecuritiestobepurchasedbytheM&SPurchaser(suchshares,the“M&SSaleShares").(Hi)theprice(the“M&SSalePrice”)pershareoftheM&SSaleShares,(iv)theproposedclosing
dateandtimeofsuchTransfer,(v)thenumberofEquitySecuritiesownedbytheM&STransferorsonthedateoftheM&SSaleNoticeand(vj)anyothermaterialtermsandconditionsoftheproposedTransfer.If,afterdeliveryofanyM&SSaleNotice,anytermsetforthinclauses(i)through(vi)oftheprecedingsentenceshouldchangeinanymaterialrespect,theM&STransferorsshalldeliveranewM&SSaleNoticeincorporatingsuchchangedterms,andtheprovisionsofthisSection4.5shallapplyinallrespectstosuchrevisedM&SSaleNotice・(a)BshallhavetherighttoparticipateintheM&SSaleandtorequesttoselltotheM&SPurchaser,andtheM&STransferorsshallupontherequestofBrequestthattheM&SPurchaserpurchasefromB,onthesametermsandconditionsofferedtotheM&STransferorsbytheM&SPurchaserattheM&SSalePrice,anumberofEquitySecuritiesupto(i)theaggregatenumberofEquitySecuritiesownedbyBonthedateoftheM&SSaleNotice,multipliedby(N)afraction,thenumeratorofwhichshallbethenumberoftheM&SSaleSharesandthedenominatorofwhichshallbethenumberofEquitySecuritiesownedintheaggregatebytheM&STransferorsandBonthedateoftheM&SSaleNotice・(b)Bmayexerciseitstag-alongrightsunderthisSection4.5bydeliveringanirrevocablewrittennoticetotheM&STransferorandtheAnolaterthanthirty(30)daysafterreceiptoftheM&SSaleNotice(includingwithoutlimitation,arevisedM&SSaleNoticecontemplatedbySection4.5(a))settingforthofthenumberofEquitySecuritiesitelectstosellintheM&SSale・NoexerciseofrightswithrespecttoanM&SSaleNoticeshallbindBwithrespecttoanysubsequentrelatedrevisedM&SSaleNoticeservedonBpursuanttothelastsentenceofSection4.5(a).(c)IfBhaselectedtoexerciseitstag-alongrightshereunderpursuanttoSection4.5(c)above,theM&STransferorshallnotconsummateanyM&SSaleunlesstheM&SPurchasershallhaveconcurrentlypurchasedfromBthenumberofEquitySecuritiesassetforthinthewrittennoticefromBasprovidedinSection4.5(c)above,onthesamedateandatthepricedescribedunderSection4.5(b)andonthesametermsandconditionsandsuchothertermsandconditionsasmayberequiredbyapplicableLawtoallowBtosellitsEquitySecuritiestotheM&SPurchaser.Inanyevent,subjecttoreceiptofanynecessaryoradvisablethirdpartyapprovalsorGovernmentalApprovals,theclosingshalloccurwithinsixty(60)daysofthereceipt
oftheM&SSaleNotice,provided,thatifanyrevisedM&SSaleNoticeisdeliveredascontemplatedbythelastsentenceofSection4.5(a)thentheclosingshalloccurwithinsixty(60)daysofthereceiptofthelastsuchrevisedM&SSaleNotice・4.3Taq-AIonqRightsoftheManagementMembers.SubjecttoSection4.1andexceptasotherwiseallowedunderSection4.2,BandCmaynot,together,Transfer80%ormoreoftheircollectivelegalorbeneficialownershipinterestintheEquitySecuritiesownedbytheminasingletransactionorseriesofrelatedtransactions,exceptpursuanttothefollowingprocedures:(a)Atleastthirty(30)dayspriortomakingsuchTransfer(a"Y&SSale”).BandCortheirwholly-ownedSubsidiariesorCAffiliates(asthecasemaybe)(the“Y&STransferors”)shalldeliverawrittennotice(theUY&SSaleNotice")totheManagementMembers1Representative・TheY&SSaleNoticeshallsetforthinreasonabledetail(])theidentityoftheprospectivetransferee(the"Y&SPurchase广)(ij)thenumberofEquitySecuritiestobepurchasedbytheY&SPurchaser(suchshares,the“Y&SSaleShares”),(m)theprice(the'Y&SSalePrice气pershareoftheY&SSaleShares,(jv)theproposedclosingdateandtimeofsuchTransfer,(v)thenumberofEquitySecuritiesownedbytheY&STransferorsonthedateoftheY&SSaleNoticeand(vj)anyothermaterialtermsandconditionsoftheproposedTransfer.If,afterdeliveryofanyY&SSaleNotice,anytermsetforthinclauses(i)through(vi)oftheprecedingsentenceshouldchangeinanymaterialrespect,theY&STransferorsshalldeliveranewY&SSaleNoticeincorporatingsuchchangedterms,andtheprovisionsofthisSection4.6shallapplyinallrespectstosuchrevisedY&SSaleNotice.(b)EachoftheManagementMembersshallhavetherighttoparticipateintheY&SSaleandtorequestinaccordancewithSection4.6(c),toselltotheY&SPurchaser,andtheY&STransferorsshallupontherequestofsuchManagementMemberinaccordaneewithSection4.6(c),requestthattheY&SPurchaserpurchasefromsuchManagementMember,onthesametermsandconditionsofferedtotheY&STransferorsbytheY&SPurchaserattheY&SSalePrice,anumberofEquitySecuritiesupto(i)theaggregatenumberofEquitySecuritiesownedbysuchManagementMemberonthedateoftheY&SSaleNotice,multipliedby(ii)afraction,thenumeratorofwhichshallbethenumberoftheY&SSaleSharesandthedenominatorofwhichshallbethenumberofEquitySecuritiesownedintheaggregatebytheY&STransferors
andsuchManagementMemberonthedateoftheY&SSaleNotice.(a)EachManagementMembermayexercisesuchManagementMember'stag-alongrightsunderthisSection4.6bydeliveringanirrevocablewrittennoticethroughtheManagementMembers1Representative,totheY&STransferorandtheAnolaterthanthirty(30)daysafterreceiptoftheY&SSaleNotice(includingwithoutlimitation,arevisedY&SSaleNoticecontemplatedbySection4.6(a))settingforththenumberofEquitySecuritiesitelectstosellintheY&SSale.NoexerciseofrightswithrespecttoaY&SSaleNoticeshallbindsuchManagementMemberwithrespecttoanysubsequentrelatedrevisedY&SSaleNoticeservedontheManagementMembers1RepresentativepursuanttothelastsentenceofSection4.6(a).(b)IfanyManagementMemberhaselectedtoexercisetheirtag-alongrightshereunderpursuanttoSection4.6(c)above,theY&STransferorshallnotconsummateanyY&SSaleunlesstheY&SPurchasershallhaveconcurrentlypurchasedfromsuchManagementMemberthenumberofEquitySecuritiesassetforthinthewrittennoticefromsuchManagementMembergiventhroughtheManagementMembers1RepresentativeasprovidedinSection4.6(c)above,onthesamedateandatthepricedescribedunderSection4.6(b)andonthesametermsandconditionsandsuchothertermsandconditionsasmayberequiredbyapplicableLawtoallowsuchManagementMembertosellitsEquitySecuritiestotheY&SPurchaser.Inanyevent,subjecttoreceiptofanynecessaryoradvisablethirdpartyapprovalsorGovernmentalApprovals,theclosingshalloccurwithinsixty(60)daysofthereceiptoftheY&SSaleNotice,provided,thatifanyrevisedY&SSaleNoticeisdeliveredascontemplatedbythelastsentenceofSection4.6(a)thentheclosingshalloccurwithinsixty(60)daysofthereceiptofthelastsuchrevisedY&SSaleNotice.4.3Taa-AlonaRightsofSOFTBANK・SubjecttoSection4.1andexceptasotherwiseallowedunderSection42theManagementMembers(asagroupandincludinganyEquitySecuritiesownedbyanyofsuchmember'sFamilyMembers,trustsformedbysuchmemberforthebenefitofhimselforhisfamilymember,andothercomparableentities)andBmaynot,together,Transfer80%ormoreoftheircollectivelegalorbeneficialownershipinterestintheEquitySecuritiesownedbytheminasingletransactionorseriesofrelatedtransactions,exceptpursuanttothefollowingprocedures:(a)Atleastthirty(30)dayspriortomakingsuchTransfer(an“M&YSale”)，the
ManagementMembersandBortheirwholly-ownedSubsidiaries(asthecasemaybe)(theKM&YTransferorsM)shalldeliverawrittennotice(the“M&YSaleNotice")toSOFTBANK.TheM&YSaleNoticeshallsetforthinreasonabledetail(1)theidentityoftheprospectivetransferee(the"M&YPurchaser11),(ii)thenumberofEquitySecuritiestobepurchasedbytheM&YPurchaser(suchshares,the"M&YSaleShares1*),(in)theprice(the“M&YSalePriceH)pershareoftheM&YSaleShares,(jv)theproposedclosingdateandtimeofsuchTransfer,(v)thenumberofEquitySecuritiesownedbytheM&YTransferorsonthedateoftheM&YSaleNoticeand(vj)anyothermaterialtermsandconditionsoftheproposedTransfer.If,afterdeliveryofanyM&YSaleNotice,anytermsetforthinclauses(i)through(vi)oftheprecedingsentenceshouldchangeinanymaterialrespect,theM&YTransferorsshalldeliveranewM&YSaleNoticeincorporatingsuchchangedterms,andtheprovisionsofthisSection4.7shallapplyinallrespectstosuchrevisedM&YSaleNotice.(a)CshallhavetherighttoparticipateintheM&YSaleandtorequesttoselltotheM&YPurchaser,andtheM&YTransferorsshallupontherequestofCrequestthattheM&YPurchaserpurchasefromSOFTBANK,onthesametermsandconditionsofferedtotheM&YTransferorsbytheM&YPurchaserattheM&YSalePrice,anumberofEquitySecuritiesupto(i)theaggregatenumberofEquitySecuritiesownedbyConthedateoftheM&YSaleNotice,multipliedby(ii)afraction,thenumeratorofwhichshallbethenumberoftheM&YSaleSharesandthedenominatorofwhichshallbethenumberofEquitySecuritiesownedintheaggregatebytheM&YTransferorsandConthedateoftheM&YSaleNotice・(b)Cmayexerciseitstag-alongrightsunderthisSection4.7bydeliveringanirrevocablewrittennoticetotheM&YTransferorandtheAnolaterthanthirty(30)daysafterreceiptoftheM&YSaleNotice(includingwithoutlimitation,arevisedM&YSaleNoticecontemplatedbySection4.7(a))settingforththenumberofEquitySecuritiesitelectstosellintheM&YSale.NoexerciseofrightswithrespecttoanM&YSaleNoticeshallbindCwithrespecttoanysubsequentrelatedrevisedM&YSaleNoticeservedonCpursuanttothelastsenteneeofSection4.7(a).(c)IfChaselectedtoexerciseitstag-alongrightshereunderpursuanttoSection4.7(c)above,theM&YTransferorshallnotconsummateanyM&YSaleunlesstheM&YPurchasershallhaveconcurrentlypurchasedfromCthenumberofEquitySecuritiesassetforthinthewrittennoticefromCasprovidedinSection4.7(c)above,onthesamedateandattheprice
describedunderSection4.7(b)and,onthesametermsandconditionsandsuchothertermsandconditionsasmayberequiredbyapplicableLawtoallowCtosellitsEquitySecuritiestotheM&YPurchaser.Inanyevent,subjecttoreceiptofanynecessaryoradvisablethirdpartyapprovalsorGovernmentalApprovals,theclosingshalloccurwithinsixty(60)daysofthereceiptoftheM&YSaleNotice,provided,thatifanyrevisedM&YSaleNoticeisdeliveredascontemplatedbythelastsentenceofSection4.7(a)thentheclosingshalloccurwithinsixty(60)daysofthereceiptofthelastsuchrevisedM&YSaleNotice・4.3SurvivalofRights.Thetag-alongrightsdescribedinSections4.4through4.7shallterminateuponthecompletionoftheIPO.4.4TransfersinViolationofthisAgreement.AnyTransferorattemptedTransferofanyEquitySecuritiesinviolationofthisAgreementshallbevoid,nosuchTransfershallberecordedontheA'sregisterofmembersandthepurportedtransfereeinanysuchTransfershallnotbetreated(andthepurportedtransferorshallbetreated)astheownerofsuchEquitySecuritiesforallpurposes・4.10FinancialInvestors.TheFinancialInvestorsandtheirwholly-ownedSubsidiariesandinvestmentfundsareintendedtobethird-partybeneficiariesofSections4.4and4.8andtheFinancialInvestorsandsuchwholly-ownedSubsidiariesandinvestmentfundsshallbeentitledtoenforcetheirrespectiverightsassuchunderthisAgreement.VotingAgreement.5.5.1VotingofShares.Bherebyagreesthat,duringtheperiodfromthedatehereofuntiltheearliestof(a)thedateonwhichtheAorJMwaivesanyoftheprovisionsofthestar)dstillarrangementassetforthinSection8.1hereof,(b)theconsummationofanIPO,(c)thefifthanniversaryoftheClosing,(d)JMceasingtobeCEOoracomparableexecutiveofficeroftheA,(e)JMceasingtoownatleast1%oftheoutstandingOrdinarySharesonaFullyDilutedBasis,(f)suchtimeastheVotingAgreementSharesisreducedtoorbelowzero,and(g)theManagementMembers1RepresentativenotifyingBandtheAofitselectiontoterminatethisSection5,B(initscapacityasaShareholder)willappearatanyShareholdersmeetingorotherwisecausetheVotingAgreementSharestobecountedaspresentthereatforpurposesof
establishingaquorumandvoteorconsent(orcausetobevoted)theVotingAgreementSharesasdirectedinwritingbytheManagementMembers1RepresentativenotlessthanfiveBusinessDaysbeforethemeetingisheldorconsentisexecuted.AtanygeneralmeetingthechairmanofthemeetingmaydeemthevotesattachedtotheVotingAgreementSharestohavebeenvotedinaccordancewiththisArticle.5.1NoOtherAareements.BmaynotenterintoanyagreementorunderstandingwithanypersontheeffectofwhichwouldbeinconsistentwithorviolativeofanyprovisioncontainedinthisSection5.5.2VotingAgreementShares.Forpurposesofthisagreement,thetermuVotinaAgreementShares”shallmeanthenumberofOrdinarySharesequalto(i)thediffereneebetweentheBEconomicInterestPercentageasoftheClosingDateand35%(ii)multipliedbytheissuedandoutstandingOrdinarySharesasoftheClosingDate.ThenumberofVotingAgreementSharesshallneverincreaseandshallbereducedfromtimetotimeasfollows:(a)ifBTransfersOrdinarySharestoanyPersonotherthananAffiliateofB,thenthenumberofVotingAgreementSharesshallbereducedbythenumbersoTransferred;(b)ifonanydate,theBEconomicInterestPercentageonsuchdatebecomeslessthantheBEconomicInterestPercentageasoftheClosingDateduetoanincreaseinthenumberofOrdinarySharesoutstandingorotherwise,thenthenumberofVotingAgreementSharesshallbereducedbyanamountequalto(i)thenumberofVotingAgreementSharesasofsuchdate(priortothisadjustment)less(ii)thenumberofOrdinarySharesissuedandoutstandingasofsuchdatemultipliedbytheBEconomicInterestPercentageinexcessof35%;and(c)ifonanydate,theManagementMemberEconomicInterestPercentageonsuchdateexceedstheManagementMemberEconomicInterestPercentageasoftheClosing,thenthenumberofVotingAgreementSharesshallbereducedbyanamountequaltotheproductof(i)thediffereneebetween(A)theManagementMemberEconomicInterestPercentageonsuchdateand(B)theManagementMemberEconomicInterestPercentageasoftheClosing,multipliedbv(ii)thenumberofOrdinarySharesthenoutstanding.6.PreemptiveRights.6.1PreemptiveRights.
(a)SubjecttothelimitationssetforthinSection6.2,iftheAproposestosellanyEquitySecurities(otherthanExemptedSecurities)(theHAdditionalSecurities”)，includinginaprivateplacement,IPO,otherpublicoffering,oraspartofanacquisition,commercialagreement,shareexchangeorotherwise,theAshall,atleastthirty(30)dayspriortoissuingsuchAdditionalSecurities,notifyeachofB,theManagementMembersandCinwritingofsuchproposedissuance(whichnoticeshallspecify,totheextentpracticable,thepurchasepriceorarangeforthepurchaseprice,ifany,for,andthetermsandconditionsof,suchAdditionalSecurities)andshalloffertosellsuchAdditionalSecuritiestoeachofB,theManagementMembersandCintheamountssetforthinsubclauses(c)and(d)belowandsubjecttoSection6.2(a),uponthetermsandconditionssetforthinthenoticeandatthePurchasePriceasprovidedinSection6.1(e)(the'PreemptiveRights").ForpurposesofcalculatingthenumberofAdditionalSecuritiesissuedpursuanttothisSection6,suchcalculationshallineludethemaximumnumberofOrdinarySharesandotherequityinterestsissuableupontheconversionorexerciseofanyconvertibleorexchangeablesecurities,options,warrantsorotherrightstoacquire,anyequityinterests.(b)IfB,theManagementMembersorCwishestosubscribeforanumberofAdditionalSecuritiesequaltoorlessthanthenumbertowhichtheyareentitledunderthissection,B,theManagementMembersorCmaydosoandshall,inthewrittennoticeofexerciseoftheoffer,specifythenumberofAdditionalSecuritiesthattheywishtopurchase.(c)WithrespecttoAdditionalSecuritiesthatareOrdinaryShares,theAshalloffertoeachofB,theManagementMembersandSOFTBANK,alloranyportionspecifiedbysuchexercisingpartyofanumberofsuchAdditionalSecuritiessuchthat,aftergivingeffecttotheproposedissuance(includingtheissuaneetoB,theManagementMembersandCpursuanttothePreemptiveRightsandincludinganyrelatedissuaneeresultingfromtheexerciseofpreemptiverightsbyanyunrelatedPersonwithrespecttothesameissuaneethatgaverisetotheexerciseofPreemptiveRightsbyB,theManagementMembersandSOFTBANK),(X)theBEconomicInterestPercentageaftersuchissuaneewouldequaltheBEconomicInterestPercentageimmediatelypriortosuchissuanee,(Y)theManagementMemberEconomicInterestPercentageaftersuchissuancewouldequaltheManagementMemberEconomicInterestPercentageimmediatelypriortosuchissuaneeand(Z)theCEconomicInterestPercentageaftersuchissuancewouldequaltheCEconomicInterest
Percentageimmediatelypriortosuchissuanee,suchnumbersofAdditionalSecuritiessetforthineachof(X),(Y)and(Z)toconstitutetheTreemptiveShareAmount”forsuchpartyforpurposesofanyexerciseofPreemptiveRightstowhichthisparagraph(c)applies.If,atthetimeofthedeterminationofanyPreemptiveShareAmountunderthisparagraph(c),anyotherPersonhaspreemptiveorotherequitypurchaserightssimilartothePreemptiveRights,suchPreemptiveShareAmountshallberecalculatedtotakeintoaccountthenumberofOrdinarySharessuchPersonshavecommittedtopurchase,roundingupsuchPreemptiveShareAmounttothenearestwholeOrdinaryShare・(a)WithrespecttoAdditionalSecuritiesthatareOtherShares,theAshalloffertoeachofB,theManagementMembersandSOFTBANK,alloranyportionspecifiedbysuchexercisingparty,ofanumberofsuchsecuritiesequaltothetotalnumberofsuchAdditionalSecuritiesproposedtobesold,multipliedbytheBEconomicInterestPercentage,theManagementMemberEconomicInterestPercentageortheCEconomicInterestPercentage,asapplicable,atsuchtime(whichnumbershallconstitutethe'PreemptiveShareAmounfforpurposesofanyexerciseofPreemptiveRightstowhichthisparagraph(d)applies).If,atthetimeofthedeterminationofanyPreemptiveShareAmountunderthisparagraph(d),anyotherPersonhaspreemptiveorotherequitypurchaserightssimilartoPreemptiveRights,suchPreemptiveShareAmountshallberecalculatedtotakeintoaccountthenumberofOtherSharessuchPersonshavecommittedtopurchase,roundingupsuchPreemptiveShareAmounttothenearestwholeOtherShare.(b)The'PurchasePrice”fortheAdditionalSecuritiestobeissuedpursuanttotheexerciseofPreemptiveRightsshallbepayableonlyincash(unlessotherwiseunanimouslyagreedbytheAandB,theManagementMembersandSOFTBANK)and,exceptasotherwisesetforthbelow,shallequalperAdditionalSecuritythepersecurityissuaneepricefortheAdditionalSecuritiesgivingrisetosuchPreemptiveRight.InthecaseofanyissuaneeofAdditionalSecuritiesotherthansolelyforcash,theAandB,theManagementMembersandCshallingoodfaithseektoagreeuponthevalueofthenon-cashconsideration;providedthatthevalueofanypubliclytradedsecuritiesshallbedeemedtobethemarketvalueofsuchsecuritiesasofthedateoftheconsummationofsuchissuance.IftheAandB,theManagementMembersorCfailtoagreeonsuchvalueduringthethirty(30)dayperiodcontemplatedbythefirstsentenceof
Section6.3,thentheAwillrefertheitemsindisputetoanationallyrecognizedinvestmentbankingfirmthatisselectedbytheBoardandreasonablyacceptabletoB,theManagementMembersandCandthatshallbeinstructedtomakeafinalandbindingdeterminationofthefairmarketvalueofsuchitemswithinten(10)daysofretentionofsuchinvestmentbankingfirm.Ifsuchadeterminationisrequired,thedeadlineforBStheManagementMembers1andSOFTBANK'SexerciseofitsPreemptiveRightswithrespecttosuchissuaneepursuanttoSection6.1(b)shallbeextendeduntilthefifth(5th)BusinessDayfollowingthedateofsuchdetermination.WhicheveroftheAorB,theManagementMembersorCwhoselastestimatedifferedthemostfromthatfinallydecidedbytheinvestmentbankingfirmshallberesponsibleforandpayallofthefeesandexperisesofsuchinvestmentbankingfirm.AlldeterminationsmadebysuchinvestmentbankingfirmshallbefinalandbindingontheAandB,theManagementMembersandSOFTBANK,asapplicable.6.1LimitationofPreemptiveRights.(a)InconnectionwiththeIPOandsubsequentfollow-onofferingsbytheA,theforegoingPreemptiveRightsshallapplyonlytotheextentnecessarytomaintaintheBEconomicInterestPercentage,theManagementMemberEconomicInterestPercentageortheCEconomicInterestPercentage,asappropriate,immediatelyfollowingtheIPOorsuchfollow-onoffering,at87.5%oftheBEconomicInterestPercentage,theManagementMemberEconomicInterestPercentageortheCEconomicInterestPercentage,asappropriate,immediatelypriortotheIPOorsuchoffering.(b)ThePreemptiveRightssetforthinSection6.1shallnotapplytoanyissuanceofEquitySecuritiesoftheAasconsiderationforthemergeroracquisition(oranysimilartransaction)ofanoperatingentity(includingEquitySecuritiesissuedtoholdersofshares,optionsorotherequityinterestsinsuchentity),whichtransactionisnotmadeforthepurposeoreffectofavoidingtheprovisionsofSection6.1,ifthecumulativedilutiveeffectsofsuchissuances(i)inanytwelve(12)monthperiodislessthan2%oftheA'sOrdinaryShares,and(u)intheaggregateforallsuchissuances,lessthan5%oftheA*sOrdinaryShares.6.2ExercisePeriod・ThePreemptiveRightssetforthinSection6.1mustbeexercisedbyacceptaneeinwritingofanofferreferredtoinSection6.1(a),(j)ifpriortotheIPO,withinthirty(30)daysfollowingthereceiptofthenoticefromtheAofitsintentiontosellEquity
Securities,and(n)inconnectionwithanyregisteredoffering(includingtheIPO),atleastfive(5)BusinessDayspriortotheprintingofthepreliminaryprospectusinconnectionwithsuchoffering;provided,thatinthecaseofclauses(i)and(ii)ysuchacceptaneeshallindicateawillingnesstopurchaseatthesamepersharepriceatwhichsuchsecuritiesaresoldtothepublic(lessunderwritingfeesanddiscounts,whichdifferenceshallbesharedequallybythepartyexercisingthePreemptiveRightsandtheA)andmayspecifyamaximumand/orminimumpersharepricethatsuchoffereeiswillingtopayforsuchEquitySecurities・TheclosingofanypurchaseofAdditionalSecuritiespursuanttotheexercisebyB,theManagementMembersorCofPreemptiveRightshereundershalloccurwithinsixty(60)daysafterdeliveryofthenoticebytheAasprovidedinSection6.1(a),subjecttothereceiptofanynecessaryGovernmentalApprovalstowhichtheissuanceofAdditionalSecuritiesissubject,provided,thatsuchsixty(60)dayperiodshallbeextendedautomaticallyasnecessarytoapplyforandobtainanyGovernmentalApprovalsthatarerequiredtoconsummatesuchpurchase,solongasthepurchaserismakinggoodfaitheffortstoobtainsuchGovernmentalApprovalsassoonaspracticableinaccordancewithapplicableLaw.Ifthereisanysuchextension,therelevantperiodwillendonthefifthBusinessDayfollowingthereceiptofsuchGovernmentalApprovals・6.1SurvivalofRights・TheprovisionssetforthinSection6.1shallcontinuetobeeffectivefollowingtheIPO,provided,that,notwithstandingtheoccurreneeofanIPO,eachShareholder'sPreemptiveRightsetforthinSection6.1shallterminateintheeventsuchShareholderceasestoownatleast50%oftheEquitySecuritiesownedbysuchShareholderasoftheClosingDate.7.RepresentationsandWarranties.EachShareholderrepresentsandwarrantstotheAandeachotherShareholderthat:7.1PowerandAuthority.SuchShareholderhasthepower,authorityandcapacity(or,inthecaseofanyShareholderthatisacorporation,limitedliabilityAorlimitedpartnership,allcorporatelimitedliabilityAorlimitedpartnershippowerandauthority,asthecasemaybe)toexecute,deliverandperformthisAgreement.7.2DueAuthorization.InthecaseofaShareholderthatisacorporation,limitedliabilityAorlimitedpartnership,theexecution,deliveryandperformanceofthisAgreementbysuch
ShareholderhasbeendulyandvalidlyauthorizedandapprovedbyallnecessarycorporatelimitedliabilityAorlimitedpartnershipaction,asthecasemaybe.InthecaseofaShareholderthatisanindividual,theexecution,deliveryandperformsneeofthisAgreementbysuchShareholderarewithinsuchShareholder'sfullpowerandlegalrightsandnootheractiononthepartofsuchShareholder(including,withoutlimitation,obtainingspousalorotherconsents)isnecessarytoauthorizethisAgreementorthetransactionscontemplatedhereby.6.1ExecutionandDelivery.ThisAgreementhasbeendulyandvalidlyexecutedanddeliveredbysuchShareholderandconstitutesavalidandlegallybindingobligationofsuchShareholderenforceableagainstsuchShareholderinaccordaneewithitsterms.6.2NoConflict.Theexecution,deliveryandperformaneeofthisAgreementbysuchShareholderdoesnotandwillnotconflictwith,violatethetermsoforresultintheaccelerationofanyobligationunder(j)anymaterialcontract,commitmentorothermaterialinstrumenttowhichsuchShareholderisapartyorbywhichsuchShareholderisbound,(ij)inthecaseofaShareholderoranyofitsSubordinateShareholdersthatisacorporation,limitedliabilityAorlimitedpartnership,thecertificateofincorporation,by-laws,certificateofformation,limitedliabilityAagreement,certificateoflimitedpartnershiporlimitedpartnershipagreement,asthecasemaybe,ofsuchShareholderor(iii)anyapplicableLaw・6.3ShareOwnership.WithrespecttoeachShareholder,ScheduleCheretosetsforth(i)thenumberandtypeofEquitySecuritiesownedbysuchShareholder,and(ii)thenameofeachPersonholdingEquitySecuritiesthataredeemedtobeownedbysuchShareholderpursuanttoSection2.9andthenumberandtypeofEquitySecuritiesheldbyeachsuchPerson.Fromandafterthedatehereof,eachShareholdershallpromptlynotifyeachotherShareholderofanychangestotheinformationcontainedinScheduleCwithrespecttosuchShareholderoranyofitsSubordinateShareholders・7.Covenants.7.1Standstill・NoShareholdermayacquireanyEquitySecuritiesoftheAifimmediatelyfollowingsuchacquisitionsuchShareholdershallown50%ormoreoftheoutstandingvotingpoweroreconomicbenefitoftheAwithoutthepriorwrittenapprovalofJM,(orinthecaseof
anyManagementMember,withouttheconsentofBandSOFTBANK),provided,thattheapprovalrightofJMinthisSection8.1shallterminateupontheearliesttooccurof(i)thesecondanniversaryoftheclosingoftheIPO,(n)thefifthanniversaryoftheClosingDate,(m)JMceasingtobeboththeChiefExecutiveOfficerandadirectoroftheAand(iv)JMceasingtoownatleast1%oftheoutstandingOrdinarySharesonaFullyDilutedBasis.8.2ChiefExecutiveOfficer.JMshallcontinuetobetheA'sChiefExecutiveOfficerfollowingtheClosingDate.EachofB,CandtheManagementMembersagreethattheywillensurethattheirrespectivedesignateddirectorsshallvoteinfavorofJMcontinuingtoserveastheA'sChiefExecutiveOfficer,unlessheisremovedearlierforCause,untiltheearliertooccurof(i)theclosingdateoftheIPO,(n)thefifthanniversaryoftheClosingDate,and(iii)hisresignation,retirement,deathorincapacity.8.3ComplianeeOfficer.TheAandBwillmutuallyagreeontheappointmentofcertainpersonnelinthelegalandfinancedepartmentsoftheA(the“ComplianeeOfficers51).Amongotherduties,theComplianceOfficersshallprovideassistancetoBinrelationtocomplianeewithapplicableLaw(including,withoutlimitation,UnitedStatessecuritieslaws),andNasdaqandstockexchangerulesandrequirements,ineachcase,withrespecttotheA.ExceptforCause,theAshallnotremoveanyComplianeeOfficerwithoutB'swrittenconsent(suchconsentnottobeunreasonablyconditioned,withheldordelayed),andshallpromptlyremoveanyComplianceOfficeruponB'swrittenrequest.Anyvacancycreatedbytheremoval,resignation,retirement,deathorincapacityofanyComplianeeOfficershallbefilledpromptlybytheAwithareplacementmutuallyagreeduponbyBandtheA.8.4Confidentiality.EachpartyshallmaintaintheconfidentialityofConfidentialInformationinaccordaneewithproceduresadoptedbysuchpartyingoodfaithtoprotectconfidentialinformationofthirdpartiesdeliveredtosuchparty,providedthatsuchpartymaydeliverordiscloseConfidentialInformationto(i)suchparty'srepresentatives,Affiliates,shareholders,limitedpartners,membersofitsinvestmentcommittees,advisorycommittees,similarbodies,andPersonsrelatedthereto,whoareinformedoftheconfidentialityobligationsofthisSection8.4andsuchpartyshallberesponsibleforanyviolationofthisSection8.4madebyanysuchPerson,(ii)anyGovernmentalAuthorityhavingjurisdictionoversuchpartytotheextentrequired
byapplicableLawor(m)anyotherPersontowhichsuchdeliveryordisclosuremaybenecessaryorappropriate(A)toeffectcompliancewithanyLawapplicabletosuchparty,or(B)inresponsetoanysubpoenaorotherlegalprocess,providedthat,inthecasesofclauses(ii)and(iii),thedisclosingpartyshallprovideeachotherpartywithpromptwrittennoticethereofsothattheappropriatepartymayseek(withthecooperationandreasonableeffortsofthedisclosingparty)aprotectiveorder,confidentialtreatmentorotherappropriateremedy,andinanyeventshallfurnishonlythatportionoftheinformationwhichisreasonablynecessaryforthepurposeathandandshallexercisereasonableeffortstoobtainreliableassuraneethatconfidentialtreatmentwillbeaccordedsuchinformationtotheextentreasonablyrequestedbyanyotherparty.8.1InformationRights.(a)TheAshall,andshallcauseeachSubsidiaryto,maintaintruebooksandrecordsofaccountinwhichfullandcorrectentriesshallbemadeofallitsbusinesstransactionspursuanttoasystemofaccountingestablishedandadministeredinaccordancewithGAAP,andshallsetasideonitsbooksallsuchproperaccrualsandreservesasshallberequiredunderGAAP.(b)TheAshalldelivertoeachofB,CandeachManagementMemberthefollowing:(i)Assoonasavailablebutinanyeventnotlaterthanthirty-five(35)daysaftertheendofeachofthequarterlyaccountingperiods,theunauditedconsolidatedbalaneesheetoftheAanditsSubsidiaries,ifany,asoftheendofeachsuchperiod,therelatedunauditedconsolidateds怕tementsofoperations,shareholders*equityandcashflowsoftheAanditsSubsidiaries,ifany,forsuchquarterlyperiodandfortheperiodfromthebeginningofsuchfiscalyeartotheendofsuchquarterlyperiod.AllsuchfinancialstatementsshallbepreparedinaccordancewithGAAPappliedonaconsistentbasisandbecertifiedbytheA'sChiefFinancialOfficer(andChiefAccountingOfficeraftersuchChiefAccountingOfficerisappointed).(ii)Assoonasavailable,butinanyeventnolaterthansixty(60)daysaftertheendofeachfiscalyearoftheA,acopyoftheauditedconsolidatedbalaneesheetsoftheAanditsSubsidiaries,ifany,asoftheendofsuchfiscalyearandtherelatedconsolidatedstatementsofoperations,shareholdersequityandcashflowsoftheAanditsSubsidiariesstatingincomparativeformthefiguresasoftheendofandforthepreviousfiscalyearcertifiedbyafirmofindependentcertifiedpublicaccountantsofrecognizedinternationalstandingselectedby
theAandapprovedbytheShareholders.AllsuchfinancialstatementsshallbepreparedinaccordancewithGAAPappliedonaconsistentbasisandbecertifiedbytheAfsChiefFinancialOfficer(andChiefAccount!ngOfficeraftersuchChiefAccountingOfficerisappointed).(i)Assoonasavailablebutinanyeventnotlaterthanthirty-five(35)daysaftertheendofeachquarterlyaccountingperiods,(A)explanationsforanysignificantmovementsfromthepriorquarterineachoftheunauditedconsolidatedbalaneesheetsandstatementsofincome,stockholders1equityandcashflowsinconjunctionwith8.5(b)(i)above,and(B)operatingmetricsrelevanttotheAlibababusinessesandusedbyAlibabamanagementfordecisionmakingpurposes.(ii)Assoonasavailablebutinanyeventnotlaterthanthirty(30)daysaftertheendofeachmonthlyaccountingperiods,acopyoftheunauditedmonthlymanagementreport,whichshallineludetheunauditedconsolidatedbalaneesheetandincomestatementoftheAanditsSubsidiaries,ifany,aftertheendofsuchmonth.AllsuchfinancialstatementsshallbepreparedinaccordaneewithGAAPappliedonaconsistentbasis・(iii)AssoonaspracticablefollowingBoardapproval,acopyoftheannualstrategicplanandbudgetoftheA.(iv)Withreasonablepromptness,suchotherinformationanddatawithrespecttotheAoranyofitsSubsidiariesasfromtimetotimemaybereasonablyrequestedbyanyShareholder.(a)TheAwill(andwillcauseitsSubsidiariesto)give(x)theShareholders,andtheirrespectiveemployeesandcontractpersonnelprimarilyengagedbysuchShareholderand(y)withthereasonableadvancenoticeto,andthereasonableconsentof,theA(suchconsentnottobereasonablywithheld,conditionedordelayed),theShareholders!respectiveoutsideaccountants,auditors,legalcounseiandotherauthorizedrepresentativesandagents,(])fullaccessduringreasonablebusinesshourstotheproperties,assets,books,contracts,commitments,reportsandrecordsoftheAanditsSubsidiaries,andfurnishtothemallsuchdocuments,recordsandinformationwithrespecttotheproperties,assetsandbusinessoftheAanditsSubsidiariesandcopiesofanyworkpapersrelatingtheretoastheShareholdersshallfromtimetotimereasonablyrequest;and(li)reasonableaccessduringreasonablebusinesshourstotheA,itsSubsidiariesandtheirrespectiveemployeesasmaybenecessaryorusefultotheShareholdersintheirreasonablejudgmentinconnectionwiththeirreviewoftheproperties,
assetsandbusinessoftheAanditsSubsidiariesandtheabove-mentioneddocuments,recordsandinformation.Withoutlimitingthegeneralityoftheforegoing,theAwill(andwillcauseitsSubsidiariesto)provideBanditsaccountantsandauditorswithaccesstosuchinformationandindividualsasisreasonablynecessarytoconductareviewoftheAanditsSubsidiaries(x)withinthreemonthsfollowingtheClosingDate,(y)twiceannuallythereafter,and(z)asreasonablynecessarytoconfirmthatanymaterialweakness，significantdeficiency,internalcontrolfailureorsystemfaultidentifiedinanoticedeliveredorrequiredtobedeliveredpursuanttoSection8.6hereofhasbeenremedied.8.1InternalControlsoverFinancialReDortina・丁heAshalluseitsreasonableeffortstoestablishandmaintainasystemofinternalcontrolsoverfinancialreportingadequatetopermitBtocomplywithSection404oftheUnitedStatesSarbanes・OxleyActof2002rSection404n)andanysimilarLaw,ineachcase,withrespecttotheA.IftheAidentifiesasignificantdeficiencyormaterialweaknessasdefinedunderSection404oritsauditorsidentifyamaterialinternalcontrolfailureorsystemfaultinaccountingorrecord-keeping,theAshallgiveBpromptwrittennoticethereofspecifyinginreasonabledetailthematerialweakness,significantdeficiency,internalcontrolfailureorsystemfaultandshalluseitsgoodfaitheffortstocorrectsuchmaterialweakness,significantdeficiency,internalcontrolfailureorsystemfaultasexpeditiouslyaspossible.8.2GAAP・AllfinancialstatementsoftheAshallbepreparedinaccordaneewithGAAP.8.3FiscalYear.ThefiscalyearoftheAshallbeginonJanuary1andendonDecember8.4ExpansionofBusiness.IntheeventthattheAdeterminestoexpandintoorenterintoanInternet-basedconsumerbusiness(otherthanapeer-to-peerpaymentsbusiness)intheUnitedStates,theUnitedKingdom,Germany,FranceorKorea,theAwillfirstdiscussandnegotiateingoodfaithwithBtermsuponwhichtheAandBwouldagreetoentersuchmarketsinapartnershiponamutuallyadvantageousandagreeablebasis・9.GoverningLawandDisputeResolution
1.1GoverningLaw.THISAGREEMENTSHALLBEGOVERNEDINALLRESPECTS,INCLUDINGASTOVALIDITY,INTERPRETATIONANDEFFECT,BYTHELAWSOFTHESTATEOFNEWYORK.1.2Arbitration.(a)Anydispute,controversyorclaimarisingoutof,relatingto,orinconnectionwiththisAgreement,orthebreach,terminationorvalidityhereof,shallbefinallysettledexclusivelybyarbitration.ThearbitrationshallbeconductedinaccordaneewiththerulesoftheInternationalChamberofCommerce(the“ICC”)ineffectatthetimeofthearbitration,exceptastheymaybemodifiedbymutualagreementoftheparties.TheseatofthearbitrationshallbeSingapore,provided,that,thearbitratorsmayholdhearingsinsuchotherlocationsasthearbitratorsdeterminetobemostconvenientandefficientforallofthepartiestosucharbitrationunderthecircumstances・ThearbitrationshallbeconductedintheEnglishlanguage・(b)Thearbitrationshallbeconductedbythreearbitrators・Theparty(ortheparties,actingjointly,iftherearemorethanone)initiatingarbitration(the“Claimant：shallappointanarbitratorinitsrequestforarbitration(the“Request。・Theotherparty(ortheotherparties,actingjointly,iftherearemorethanone)tothearbitration(the“Respondentjshallappointanarbitratorwithinthirty(30)daysofreceiptoftheRequestandshallnotifytheClaimantofsuchappointmentinwriting.Ifwithinthirty(30)daysofreceiptoftheRequestbytheRespondent,eitherpartyhasnotappointedanarbitrator,thenthatarbitratorshallbeappointedbytheICC.Thefirsttwoarbitratorsappointedinaccordaneewiththisprovisionshallappointathirdarbitratorwithinthirty(30)daysaftertheRespondenthasnotifiedClaimantoftheappointmentoftheRespondent'sarbitratoror,intheeventofafailurebyapartytoappoint,withinthirty(30)daysaftertheICChasnotifiedthepartiesandanyarbitratoralreadyappointedoftheappointmentofanarbitratoronbehalfofthepartyfailingtoappoint.Whenthethirdarbitratorhasacceptedtheappointment,thetwoarbitratorsmakingtheappointmentshallpromptlynotifythepartiesoftheappointment.Ifthefirsttwoarbitratorsappointedfailtoappointathirdarbitratororsotonotifythepartieswithinthetimeperiodprescribedabove,thentheICCshallappointthethirdarbitratorandshallpromptlynotifythepartiesoftheappointment.ThethirdarbitratorshallactasChairofthetribunal.
(a)Thearbitralawardshallbeinwriting,statethereasonsfortheaward,andbefinalandbindingontheparties・Theawardmayineludeanawardofcosts,includingreasonableattorneys1feesanddisbursements.Inadditiontomonetarydamages,thearbitraltribunalshallbeempoweredtoawardequitablerelief,including,butnotlimitedto,aninjunctionandspecificperformaneeofanyobligationunderthisAgreement.Thearbitraltribunalisnotempoweredtoawarddamagesinexcessofcompensatorydamages,andeachpartyherebyirrevocablywaivesanyrighttorecoverpunitive,exemplaryorsimilardamageswithrespecttoanydispute,exceptinsofarasaclaimisforindemnificationforanawardofpunitivedamagesawardedagainstapartyinanactionbroughtagainstitbyanindependentthirdparty.Thearbitraltribunalshallbeauthorizedinitsdiscretiontograntpre-awardandpost-awardinterestatcommercialrates.Anycosts,feesortaxesincidenttoenforcingtheawardshall,tothemaximumextentpermittedbyLaw,bechargedagainstthepartyresistingsuchenforcement.Judgmentupontheawardmaybeenteredbyanycourthavingjurisdictionthereoforhavingjurisdictionovertherelevantpartyoritsassets.(b)Inordertofacilitatethecomprehensiveresolutionofrelateddisputes,anduponrequestofanypartytothearbitrationproceeding,thearbitrationtribunalmay,withinninety(90)daysofitsappointment,consolidatethearbitrationproceedingwithanyotherarbitrationproceedinginvolvinganyofthepartiesrelatingtothisAgreement,thePurchaseandContributionAgreementandtheotherAncillaryAgreements・Thearbitrationtribunalshallnotconsolidatesucharbitrationsunlessitdeterminesthat(x)thereareissuesoffactorlawcommontotheproceedings,sothataconsolidatedproceedingwouldbemoreefficientthanseparateproceedings,and(y)nopartywouldbeprejudicedasaresultofsuchconsolidationthroughunduedelayorotherwise・IntheeventofdifferentrulingsonthisquestionbythearbitrationtribunalconstitutedhereunderandanytribunalconstitutedundertheAnciliaryAgreements,therulingofthetribunalconstitutedunderthisAgreementwillgovern,andthattribunalwilldecidealldisputesintheconsolidatedproceeding・(c)Thepartiesagreethatthearbitrationshallbekeptconfidentialandthattheexisteneeoftheproceedingandanyelementofit(includingbutnotlimitedtoanypleadings,briefsorotherdocumentssubmittedorexchanged,anytestimonyorotheroralsubmissions,andanyawards)
shallnotbedisclosedbeyondthetribunal,theICC,theparties,theircounseiandanypersonnecessarytotheconductoftheproceeding,exceptasmaybelawfullyrequiredinjudicialproceedingsrelatingtothearbitrationorotherwise,orasrequiredbyNASDAQrulesortherulesofanyotherquotationsystemorexchangeonwhichthedisclosingpart/ssecuritiesarelistedorapplicableLaw.(a)Thecostsofarbitrationshallbebornebythelosingpartyunlessotherwisedeterminedbythearbitrationaward.(b)AllpaymentsmadepursuanttothearbitrationdecisionorawardandanyjudgmententeredthereonshallbemadeinUnitedStatesdollars,freefromanydeduction,offsetorwithholdingforTaxes・(c)NotwithstandingthisSection9.2oranyotherprovisiontothecontraryinthisAgreement，nopartyshallbeobligatedtofollowtheforegoingarbitrationprocedureswheresuchpartyintendstoapplytoanycourtofcompetentjurisdictionforaninteriminjunctionorsimilarequitablereliefagainstanyotherparty,providedthereisnounreasonabledelayintheprosecutionofthatapplication.10.Miscellaneous.10.1Notices・Allnotices,requests,demands,waiversandothercommunicationsrequiredorpermittedtobegivenunderthisAgreementshallbeinwritingandshallbedeemedtohavebeendulygivenif(a)deliveredpersonally,(b)sentbycommercialcourierservicesorovernightmailordeliveryor(c)sentbyfacsimilewithconfirmationbypersonaldeliveryorovernightmail,asfollows:(a)iftotheA,toAlibaba.comCorporationdoAlibaba.comHongKongLimited2403-05JubileeCentre18FenwickStreetWanchai,HongKongFax:+852-2215-5200Telephone:+852-2215-5100Attention:ChiefFinancialOfficerwithacopyto:Debevoise&PlimptonLLP13/FEntertainmentBuilding30Queen'sRoadCentral,HongKongFax:(852)28109828Telephone:(852)21609800Attention:ThomasM.BrittIII(b)IftotheShareholders,tosuchShareholder'saddresssetforthinthesignaturepage.
Or,ineachcase,atsuchotheraddressasmaybespecifiedinwritingtotheotherpartieshereto.Allsuchnotices,requests,demands,waiversandothercommunicationsshallbedeemedtohavebeenreceived(i)ifbypersonaldeliveryonthedayaftersuchdelivery,(n)ifbycourierservicesorovernightmailordelivery,onthedaydelivered,and(]ii)ifbyfacsimile,onthenextdayfollowingthedayonwhichsuchfacsimilewassent,providedthatitisfollowedimmediatelybyconfirmationbypersonaldeliveryorovernightmailthatisreceivedpursuanttosubclause(i)or(ii).10.2ManaaementMembers,Representative.(a)ConcurrentwiththeexecutionanddeliveryofthisAgreement,eachoftheManagementMembersisenteringintoanAgreementAmongManagementMembers(theuAgreementAmongManagementMembers11)pursuanttowhich,interalia,theManagementMembershaveappointedtheChiefExecutiveOfficeroftheAastheirinitialagent,representativeandattorney・irvfact(theuManaaementMembers1Representative”)・(b)EachShareholdershallbeentitledtorelyuponthedecision,actions,consentsorinstruct!onsoftheManagementMembers,RepresentativeappointedpursuanttotheAgreementAmongManagementMembersasbeingthedecision,action,consentorinstructionoftheManagementMembersandeachoftheirrespectiveSubordinateShareholdersinconnectionwithallmatterssetforthinthisAgreementthatarerequiredtobetakenupcollectivelybytheManagementMembersandeachoftheirrespectiveSubordinateShareholders(includingbutnotlimitedtothedesignationoftheManagementMemberDesignee(s)pursuanttoSection2.3hereof).EachoftheA,BandCareherebyrelievedfromanyliabilitytoanyManagementMemberoranySubordinateShareholderofanyManagementMemberforanylawfulactsdonebytheminaccordaneewithsuchdecision,act,consent,orinstructionoftheManagementMembers,Representative.10.3Experises・EachpartytothisAgreementshallbearitsrespectiveexperises,costsandfees(includingattorneys'fees)incormectionwiththetransact!onscontemplatedhereby,includingthepreparation,executionanddeliveryofthisAgreementandcomplianeeherewith,whetherornotthetransactionscontemplatedherebyshallbeconsummated.10.4EntireAgreement.ThisAgreement,thePurchaseandContributionAgreementandthe
otherAnciliaryAgreements(whenexecutedanddelivered)constitutetheentireagreementandsupersedeallprioragreementsandunderstandings,bothwrittenandoral,betweenthepartieswithrespecttothesubjectmatterhereof.ThisAgreementsupersedesallpriorshareholdersagreementstowhichtheAandanyshareholderisaparty,including,withoutlimitation,theAmendedandRestatedShareholdersAgreemententeredintoonMay13,2004,amongtheAandcertainshareholderspartiesthereto.10.5AmendmentandWaiver.Exceptasotherwiseprovidedherein,noamendment,alterationormodificationofthisAgreementorwaiverofanyprovisionofthisAgreementshallbeeffectiveagainsttheAortheShareholdersunlesssuchamendment,alteration,modificationorwaiverisapprovedinwritingbyB,CandtheManagementMembers*Representative(whichshallbetheonlyShareholderswhoseapprovalshallbenecessarytoeffectanysuchamendment,alteration,modificationorwaiver);provided,thatanyamendment,alterationormodificationofSection4.4,4.9,4.10or10.5ofthisAgreementoranyotherprovisionthatmayaffecttherightsoftheFinancialInvestorspursuanttoSections4.4,4.9,4.10and10.5ofthisAgreementshallalsorequirethewrittenconsentoftheFinancialInvestorsowningEquitySecuritieswithatleasthalfofthevotingpowerofEquitySecuritiesownedbyallFinancialInvestorsasofthedateofthisAgreement.ThefailureofanypartytoenforceanyprovisionofthisAgreementshallnotbeconstruedasawaiverofsuchprovisionandshallnotaffecttherightofsuchpartythereaftertoenforceeachprovisionofthisAgreementinaccordaneewithitsterms.10.6BindingEffect.ThisAgreementshallbebindinguponandinuretothebenefitofthepartiesheretoandtheirrespectiveheirs,successorsandpermittedassigns.10.7Severability.Ifanyprovision,includinganyphrase,sentencetclause,sectionorsubsection,ofthisAgreementisinvalid,inoperativeorunenforceableforanyreason,suchcircumstancesshallnothavetheeffectofrenderingsuchprovisioninquestioninvalid,inoperativeorunenforceableinanyothercaseorcircumstance,orofrenderinganyotherprovisionhereincontainedinvalid,inoperativeorunenforceabletoanyextentwhatsoever.10.8Assignment.ThisAgreementshallnotbeassignableorotherwisetransferablebyanypartyheretowithoutthepriorwrittenconsentofeachofB,CandtheManagementMembers'Representative(whichshallbetheonlyShareholderswhoseapprovalshallbenecessaryto
effectanysuchassignment),andanypurportedassignmentorothertransferwithoutsuchconsentshallbevoidandunenforceable・10.9NoThirdPartyBeneficiaries.ExceptasprovidedinSections2.7and4.10,nothinginthisAgreementshallconferanyrightsuponanypersonorentityotherthanthepartiesheretoandtheirrespectiveheirs,successorsandpermittedassigns.10.10Termination.Subjecttotheforegoing,thisAgreementshallterminatewithrespecttoeachShareholder,initscapacityasaShareholder,atthetimeatwhichsuchShareholderceasestoownanyEquitySecurities,exceptthatsuchterminationshallnotaffect(a)therightsperfectedortheobligationsincurredbysuchShareholderunderthisAgreementpriortosuchtermination(includinganyliabilityforbreachofthisAgreement)and(b)theobligationsexpresslystatedtosurvivesuchcessationofownershipofEquitySecurities.10.11Headings.TheheadingsofthisAgreementareinsertedforconvenienceonlyanddonotconstituteapartofthisAgreement.10.12Counterparts・ThisAgreementmaybeexecutedinanynumberofcounterpartseachofwhichshallbeanoriginalandallofwhichtakentogethershallconstituteoneandthesameagreement.INWITNESSWHEREOF,thepartieshaveexecutedthisAgreementasofthedatefirstabovewritten.
