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Contract Party A year of birth nationality telephone ID number Party B Member 1 year of birth nationality telephone ID number Member 2 year of birth nationality telephone ID number Member 3 year of birth nationality telephone ID number Party C year of birth nationality telephone ID number Party D business registration number executive partner A B C and D on the basis of mutual trust voluntarily jointly start the business and sign the contract The parties perform the terms and obligations of the contract at the same time in order to show respect for the contract and to maintain the integrity of the contract In view of the above the following terms are reached by negotiation of party A B C and D 1 The four parties are co registered and established as a limited liability company as the original shareholders Business registration ownership structure Party A 00 Party B 00 of which members 1 of 00 members 2 of 00 member 3 of 00 C 00 D 00 2 The registered capital is CNY 0 000 000 there is no actual contribution of the Party B to the registered capital CNY 0 000 000 its subscribed capital based on the proportion of registered capital should be paid by Party A if Party B can fully perform the contract Party B will get free normal right of shareholder company registered capital of more than CNY 0 000 000 equity ratio is calculated based on the new increased capital of the corresponding parties Party A Party C and Party D are responsible for the company s liabilities Party B is agreed to enjoy the company revenue but does not assume any of the company s debt risk 3 Party B as registered 00 shares 000 00 000 million shares of which 0 000 000 shares 00 shares held by Party B member 1 is holding on behalf of party A the remaining 0 000 000 shares 00 shares of Party B will be obtained by 3 times 000 000 shares of the first 0 is obtained on signature date of the agreement second times for the introduction of Standard achieve as standard increased to 000 000 shares 00 third time that patent goal is achieved complete 1 of the patent related invention patent authorization certificate as standard patent ownership belongs to company all patent fees pay by company and then increased to 0 000 000 shares 00 4 Party B as registered 00 shares 0 is actually held including member 1 of 00 member 2 of 00 member 3 of 00 the remaining 00 is holding for Party A signed shares holding agreement goals finished for second time shares obtaining acquire shares from the signing of the agreement expected complete within one year Party B can actually hold shares to 00 of which member 1 of 00 member 2 of 00 member 3 of 00 by changing the shares holding agreement goals finished for third time obtaining expected to be completed within two years since the successful development of technology namely increased to 00 after the patent authorization of which member 1 of 0 member 2 of 00 member 3 of 00 if delay to get patent certificate Party B delays to obtain the final 0 stock conversely if the realization of the goal is achieved in advance then party B can get the last 0 shares in advance 5 Party D as shares holding platform company is reserved for entrepreneurial team as personnel incentive 00 shares by Party A and Party C Before the introduction of external venture capital company the shareholding structure of the company designed for Party A and C were expected to hold 00 stock together Party B holds 00 the remaining 00 of shares is held for other business members in order to attract more talents to join the company 6 Full time staffs get wages paid part time shareholders do not receive wages only enjoy the company s dividends 7 If company applies the government s funds it needs to use the funds according to the regulations of the government No shareholder shall be allowed to take private ownership except for the government s provision to the individual of the talented person and the subsidy of talents can be paid to the individual of talent 8 After the signing of this contract party A B C and D without the shareholders meeting shall not be approved to involve in technical cooperation with any other company and shall not be leaked the technology to any other company or party If approved by the shareholders to the technical cooperation with other companies it should be newly formed company of A B C and D partners rather than A B C and D either If cooperate with other companies A B C and D obligations and rights are in accordance with the distribution of equity Any party who violates this clause will be regarded as a fundamental breach of contract and the party in default will pay CNY 0 000 000 to the other party as a breach of contract 9 The chairman and general manager of the company are recommended by Party A the legal representative is designated by Party A and the structure of the board of directors is decided by the shareholders by negotiation and discussion 10 If any party leaves the company it is required to comply with the 0 year prohibition of competition and the 0 year secrecy agreement 11 If the company closes or the project is closed the company s patent will be sold for sale and the acquired rights and interests will enter the company s assets 12 When shareholders transfer shares or stock right they need approval from the general meeting of shareholders The priority of other shareholders and the principle of internal first acceptance are taken if no one receives internally then other parties or companies are considered 13
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