Common use of Transfer of Equity Clause in Contracts

Transfer of Equity. (1) The Grantors shall cause Party D to convene the shareholders’ meeting, in which the resolution on the assignment of the Equity of the Grantors to Party A and/or the third party designated by Party A shall be passed; (2) The Grantors shall enter into a transfer agreement substantially consistent with the equity transfer agreement specified in Appendix 1 hereto with Party A (or a third party designated by Party A, if applicable); (3) The Grantors shall undertake that they waive the right of first refusal they are entitled to the purchased Equity; (4) The Grantors shall enter into all other necessary contracts, agreements or documents, obtain all necessary governmental approvals and consents, take all actions necessary to assign the ownership of the purchased Equity to Party A and/or a third party designated by Party A without any encumbrances over such Equity, and ensure Party A and/or a third party designated by Party A to become the registered owner of the purchased Equity filed with the Administration for Industry and Commerce, and provide Party A and/or a third party designated by Party A with the updated business license, articles of association, approval certificates (if any) and other relevant documents issued or recorded by relevant competent authorities of the PRC, and such documents shall reflect the changes of the Equity, directors and legal representative of Party D.