Common use of Equity Purchase Clause in Contracts

Equity Purchase. (1) Party B hereby irrevocably grants to Party A the right to purchase at any time, or designate any third party to purchase, all or part of Party B’s equity interest in Party C, provided permitted under Chinese laws and regulations. Apart from Party A or any third party designated by Party A, no other person shall have the right to purchase such equity interest. Party C agrees to such grant by Party B to Party A. For the purpose of this Agreement, a “third party” or a “person” may be a natural person, company, partnership, enterprise, trust agency or other non-corporate entity. (2) To the extent permitted under Chinese laws and regulations, Party A shall exercise such right to purchase the equity interest by written notice to Party B specifying the amount of equity to be purchased; (3) Unless otherwise required under Chinese laws and regulations, the transaction price for the equity transfer hereunder shall be the lowest price permitted under Chinese law; (4) All the money obtained by Party B from transfer of its interest in Party C hereunder shall be used to satisfy Party B’s payment obligations under the Loan Agreement.