Common use of Cooperation Method Clause in Contracts

Cooperation Method. 2.1 Party A and Party B agree that firstly Party A will transfer a 40% equity interest in Dongsheng held by them to Party B in accordance with the terms and conditions of this Agreement. Specifically, ▇▇▇▇ ▇▇▇ will transfer to Party B a 32% equity interest in Dongsheng, and ▇▇▇▇▇ ▇▇▇ will transfer to Party B an 8% equity interest in Dongsheng. Both ▇▇▇▇ ▇▇▇ and ▇▇▇▇▇ ▇▇▇ waive their rights of first refusal with regard to the transferred equity interest. After this equity transfer, Dongsheng will have a registered capital of RMB 2,000,000 with ▇▇▇▇ ▇▇▇ holding 48%, Party B holding 40% and ▇▇▇▇▇ ▇▇▇ holding the remaining 12%. 2.2 Party A and Party B agree that after the equity transfer Party B shall contribute RMB 50,000,000 in cash to Dongsheng. Specifically, RMB 1,000,000 shall be used as registered capital and the remaining RMB 49,000,000 shall be put into capital surplus. Party A waives its right to subscribe to the capital increase. After this capital increase is finished, Dongsheng’s registered capital will increase to RMB 3,000,000 with Party B holding 60%, ▇▇▇▇ ▇▇▇ holding 32% and ▇▇▇▇▇ ▇▇▇ holding 8%.