Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
The information set forth in Items 3 and 4 is hereby incorporated by reference in this Item 6.
Subscription Agreement
Tencent Mobility and Windcreek Limited, a company organized under the laws of British Virgin Islands (“Windcreek”), entered into the Subscription Agreement with the Issuer on December 17, 2017. Pursuant to the Subscription Agreement, the Issuer issued to Tencent Mobility the Subscribed Shares in consideration for the Closing Purchase Price, on the Closing Date. On the same Closing Date, the Issuer also issued 3,955,473 Class A Ordinary Shares to Windcreek, for a purchase price of $258,687,934.20 in cash, pursuant to the Subscription Agreement.
The Subscription Agreement contains customary representations, warranties and indemnities from each of Windcreek, Tencent and the Issuer for a transaction of this nature.
The foregoing description of the Subscription Agreement does not purport to be a complete description of the terms thereof and is qualified in its entirety by reference to the full text of the Subscription Agreement. A copy of the Subscription Agreement is filed as Exhibit 2 hereto and is incorporated herein by reference.
Business Cooperation Agreement
Tencent entered into a Business Cooperation Agreement with the Issuer on December 17, 2017.
Business Cooperation. Pursuant to the Business Cooperation Agreement, Tencent has granted to the Issuer an entry on the interface of Weixin Wallet to enable the Issuer to utilize traffic from Tencent’s Weixin platform.
The foregoing description of the Business Cooperation Agreement does not purport to be a complete description of the terms thereof and is qualified in its entirety by reference to the full text of the Business Cooperation Agreement. A copy of the Business Cooperation Agreement is filed as Exhibit 4 hereto and is incorporated herein by reference.
Investor Rights Agreement
Tencent Mobility, Windcreek, Mr. Eric Ya Shen, Mr. Arthur Xiaobo Hong, Elegant Motion Holdings Limited and High Vivacity Holdings Limited, each a company incorporated under the laws of the British Virgin Islands entered into an Investor Rights Agreement with the Issuer on the Closing Date. Pursuant to the Investor Rights Agreement, Tencent Mobility has received certain investor’s rights including pre-emptive rights, registration rights and observer appointment rights, a brief summary of which is set forth below:
Lock-up restriction. Pursuant to the Investor Rights Agreement, Tencent Mobility has agreed not to, directly or indirectly, offer, sell, contract to sell, pledge, transfer, assign or otherwise dispose of any of its Subscribed Shares or any economic interest therein, or enter into a transaction which would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the Subscribed Shares, until two years after the Closing Date. Windcreek is subject to the same lock-up restriction pursuant to the Investor Rights Agreement.
Standstill restriction. Pursuant to the Investors Rights Agreement, Tencent Mobility has agreed that, without the Issuer’s prior written consent, neither Tencent Mobility nor any of its affiliates will, directly or indirectly, (i) in any way acquire, offer or propose to acquire or agree to acquire legal title to or beneficial ownership of any securities of the Issuer to the extent the ownership percentage of Tencent Mobility will exceed 12% as a result of such acquisition; (ii) make any public announcement with respect to or submit any proposal for, the acquisition of a majority of the securities of the Issuer (including through tender offer, merger, consolidation, or recapitalization of the Issuer); (iii) seek or propose to influence, advise, change or control the management, the Board, governing instruments or policies or affairs of the Issuer by way of any public communication or communication with any person other than the Issuer, or make, or in any way participate in, any “solicitation” of “proxies” (as such terms are defined or used in Regulation 14A of the Exchange Act); (iv) form, join or in any way participate in a “group” (as defined in Section 13(d)(3) of the Exchange Act) in connection with any action contemplated by any of the foregoing; (v) enter into any negotiations or arrangements with any third party, or finance any third party, with respect to any of the foregoing; (vi) make any public disclosure inconsistent with clauses (i) through (v), or knowingly take any action with the intent of requiring the Issuer to make any public disclosure with respect to the matters set forth in clauses (i) through (v) until two years after the Closing Date; or (vii) make a request to amend or waive any of the provisions in the Investor Rights Agreement related to the foregoing standstill provision.