4.4 | The funds obtained by the Pledgee from exercising its rights and powers shall be processed in the following order: |
First, pay all costs (including payment of remuneration to its lawyer and agent) incurred in disposing of the collateral and the Pledgee's exercise of its rights and powers;
Second, pay taxes and fees due to the disposal of collateral; and
Third, repay the guaranteed debt to the Pledgee.
If there is any balance after deduction of the above-mentioned funds, the Pledgee shall return the remaining funds to the Pledgors or other persons who have rights to the funds in accordance with relevant laws and regulations, or deposit it with the notary office where the Pledgee is located (all resulting costs shall be borne by the Pledgors).
4.5 | The Pledgee has the right to choose how to exercise the pledge and any other remedies for default that it enjoys, either in full or in part. The Pledgee does not need to exercise other remedies for default before exercising the right to auction or sell the collateral under the Agreement. How to exercise the pledge and any remedies for default it enjoys neither affects the effectiveness of the remaining pledge, nor does it affect the effectiveness of any other remedies for default enjoyed by the Pledgee. |
Article 5 Fees and Expenses
All actual expenses of all parties related to the establishment of equity pledge under the Agreement, including (but not limited to) stamp duty, any other taxes and all legal expenses, shall be borne by the Pledgors.
Article 6 Non-waiver
The Pledgee's giving the Pledgors an exemption and grace or the Pledgee's delay in exercising any rights under the Service Agreement, the Agreement or other agreements directly related to these agreements shall neither affect the Pledgee's rights under the Service Agreement, the Agreement or other agreements directly related to such agreements or any rights granted by Chinese law, nor does it affect the Pledgee's request at any time in the future for the Pledgors and the Company to strictly implement rights under the Service Agreement, the Agreement or other agreements directly related to such agreements or the rights of the Pledgee due to the Pledgors and the Company's subsequent breach of the obligations of the Service Agreement, the Agreement or other agreements directly related to such agreements.
Article 7 Statement and Guarantee
The Pledgors and the Company separately and jointly declare and guarantee the following to the Pledgee:
7.1 | The Pledgors are Chinese citizens with full capacity, and the Company is a limited company established and legally existing in accordance with Chinese laws. They have complete and independent legal status and legal capacity, and have been properly authorized to enter into, deliver and perform the Agreement, and can independently act as a party of litigation subjects. |
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