China Real Estate Information Corporation 18,000,000 American Depositary Shares Representing 18,000,000 Ordinary Shares UNDERWRITING AGREEMENT
EXHIBIT 1.1
18,000,000 American Depositary Shares
Representing
18,000,000 Ordinary Shares
October , 2009
Credit Suisse Securities (USA) LLC
Eleven Xxxxxxx Xxxxxx,
Xxx Xxxx, X.X. 00000-0000
X.X.X.
Eleven Xxxxxxx Xxxxxx,
Xxx Xxxx, X.X. 00000-0000
X.X.X.
UBS AG
52/F, Two International Finance Centre
0 Xxxxxxx Xxxxxx, Xxxxxxx, Xxxx Xxxx
52/F, Two International Finance Centre
0 Xxxxxxx Xxxxxx, Xxxxxxx, Xxxx Xxxx
As Representatives of the Several Underwriters,
Dear Sirs:
1. Introductory. China Real Estate Information Corporation, a company incorporated in the
Cayman Islands with limited liability (the “Company”), agrees with the several Underwriters named
in Schedule A hereto (the “Underwriters”), for whom you are acting as representatives (in such
capacity, the “Representatives”), to issue and sell to the several Underwriters an aggregate of
18,000,000 American depositary shares (“ADSs”), each ADS representing one ordinary share of the
Company of par value $0.0002 per share (“Ordinary Shares”) (such 18,000,000 ADSs being hereinafter
referred to as the “Firm Securities”). The Company also agrees to sell to the Underwriters, at the
option of the Underwriters, an aggregate of not more than 2,700,000 additional ADSs (the “Optional
Securities”). The Firm Securities and the Optional Securities are herein collectively called the
“Offered Securities”. The ADSs purchased by the Underwriters will be evidenced by American
Depositary Receipts (“ADRs”) to be issued pursuant to a Deposit Agreement dated as of [ ], 2009
(the “Deposit Agreement”), entered into among the Company, JPMorgan Chase Bank, N.A., as depositary
(the “Depositary”), and all owners and beneficial owners from time to time of the ADSs.
2. (a) Representations and Warranties of the Company. The Company represents and warrants
to, and agrees with, the several Underwriters that:
(i) Filing and Effectiveness of Registration Statement; Certain Defined Terms. The
Company has filed with the Commission a registration statement on Form F-1 (No. 333-162213)
covering the registration of the Offered Securities under the Act, including a related
preliminary prospectus or prospectuses. At any particular time, this initial registration
statement, in the form then on file with the Commission, including all information
contained in the registration statement (if any) pursuant to Rule 462(b) and then deemed to
be a part of the initial registration statement, and all 430A Information and all 430C
Information, that in any case has not then been superseded or modified, shall be referred
to as the “Initial Registration Statement”. The Company may also have filed, or may file
with the Commission, a Rule 462(b) registration statement covering the registration of
Offered Securities. At any particular time, this Rule 462(b) registration statement, in
the form then on file with the Commission, including the contents of the Initial
Registration Statement incorporated by reference therein and including all 430A Information
and all 430C
Information, that in any case has not then been superseded or modified, shall be
referred to as the “Additional Registration Statement”. A registration statement on Form
F-6 (No. 333-162307) relating to the ADSs has been filed with the Commission and has become
effective (such registration statement on Form F-6, including all exhibits thereto, as
amended through the time such registration statement became effective, being hereinafter
called the “ADS Registration Statement”). The Company has also filed, in accordance with
Section 12 of the Exchange Act, a registration statement (such registration statement as
amended through the time such registration statement becomes effective, being hereinafter
called the “Exchange Act Registration Statement”), on Form 8-A (No. 001-34479) under the
Exchange Act to register, under Section 12(b) of the Exchange Act, the Ordinary Shares and
the ADSs. For purposes of this Agreement, all references to the Initial Registration
Statement, the Additional Registration Statement, the ADS Registration Statement, the
Exchange Act Registration Statement, any preliminary prospectus, the Final Prospectus (as
defined below) or any amendment or supplement to any of the foregoing shall be deemed to
include the copy filed with the Commission pursuant to its Electronic Data Gathering,
Analysis and Retrieval system (“XXXXX”).
As of the time of execution and delivery of this Agreement, the Initial Registration
Statement has been declared effective under the Act and is not proposed to be amended, and
the Exchange Act Registration Statement has become effective as provided in Section 12 of
the Exchange Act. Any Additional Registration Statement has or will become effective upon
filing with the Commission pursuant to Rule 462(b) and is not proposed to be amended. The
Offered Securities all have been or will be duly registered under the Act pursuant to the
Initial Registration Statement and, if applicable, the Additional Registration Statement.
For purposes of this Agreement:
“430A Information”, with respect to any registration statement, means information
included in a prospectus and retroactively deemed to be a part of such registration
statement pursuant to Rule 430A(b).
“430C Information”, with respect to any registration statement, means information
included in a prospectus then deemed to be a part of such registration statement pursuant
to Rule 430C.
“Act” means the Securities Act of 1933, as amended.
“Applicable
Time” means [ ] [a/pm] (U.S. Eastern standard time) on the date of this
Agreement.
“Closing Date” has the meaning defined in Section 3 hereof.
“Commission” means the Securities and Exchange Commission.
“Effective Time” with respect to the Initial Registration Statement or, if filed prior
to the execution and delivery of this Agreement, the Additional Registration Statement
means the date and time as of which such Registration Statement was declared effective by
the Commission or has become effective upon filing pursuant to Rule 462(b). If an
Additional Registration Statement has not been filed prior to the execution and delivery of
this Agreement but the Company has advised the Representatives that it proposes to file
one, “Effective Time” with respect to such Additional Registration Statement means the date
and time as of which such Registration Statement is filed and becomes effective pursuant to
Rule 462(b).
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Final Prospectus” means the Statutory Prospectus that discloses the public offering
price, other 430A Information and other final terms of the Offered Securities and otherwise
satisfies Section 10(a) of the Act.
“General Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is intended for general distribution to prospective investors (other than a Bona Fide
Electronic
2
Road Show (as defined below)) as evidenced by its being so specified in Schedule B to
this Agreement.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus”, as
defined in Rule 433, relating to the Offered Securities in the form filed or required to be
filed with the Commission or, if not required to be filed, in the form retained in the
Company’s records pursuant to Rule 433(g). The Company has made available a “bona fide
electronic road show”, as defined in Rule 433, in compliance with Rule 433(d)(8)(ii) (the
“Bona Fide Electronic Road Show”) such that no filing of any “road show” (as defined in
Rule 433(h)) is required in connection with the offering of the Offered Securities.
“Limited Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is not a General Use Issuer Free Writing Prospectus.
The Initial Registration Statement and the Additional Registration Statement are
referred to collectively as the “Registration Statements” and individually as a
“Registration Statement”. A “Registration Statement” with reference to a particular time
means the Initial Registration Statement and any Additional Registration Statement as of
such time. A “Registration Statement” without reference to a time means such Registration
Statement as of its Effective Time. For purposes of the foregoing definitions, 430A
Information with respect to a Registration Statement shall be considered to be included in
such Registration Statement as of the time specified in Rule 430A.
“Rules and Regulations” means the rules and regulations of the Commission.
“Securities Laws” means, collectively, the Xxxxxxxx-Xxxxx Act of 2002
(“Xxxxxxxx-Xxxxx”), the Act, the Exchange Act, the Rules and Regulations, the auditing
principles, rules, standards and practices applicable to auditors of “issuers” (as defined
in Xxxxxxxx-Xxxxx) promulgated or approved by the Public Company Accounting Oversight Board
and, as applicable, the rules of the NASDAQ Stock Market (“Exchange Rules”).
“Statutory Prospectus” with reference to a particular time means the prospectus
included in a Registration Statement immediately prior to that time, including any 430A
Information or 430C Information with respect to such Registration Statement. For purposes
of the foregoing definition, 430A Information shall be considered to be included in the
Statutory Prospectus as of the actual time that form of prospectus is filed with the
Commission pursuant to Rule 424(b) or Rule 462(c) and not retroactively.
Unless otherwise specified, a reference to a “rule” is to the indicated rule under the
Act.
(ii) Compliance with Securities Act Requirements. (i) (A) At their respective
Effective Times, (B) on the date of this Agreement and (C) on each Closing Date, each of
the Initial Registration Statement, the Additional Registration Statement (if any), the ADS
Registration Statement and any amendments and supplement thereto conformed and will conform
in all material respects to the requirements of the Act and the Rules and Regulations and
did not and will not include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading, (ii) on its date, at the time of filing of the Final Prospectus pursuant to
Rule 424(b) or (if no such filing is required) at the Effective Time of the Additional
Registration Statement in which the Final Prospectus is included, and on each Closing Date,
the Final Prospectus will conform in all material respects to the requirements of the Act
and the Rules and Regulations and will not include any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to make the
statements therein not misleading, and (iii) on the date of this Agreement, at their
respective Effective Times or issue dates and on each Closing Date, each Registration
Statement, the Final Prospectus, any Statutory Prospectus, any prospectus wrapper and any
Issuer Free Writing Prospectus complied or comply, and such documents and any further
amendments or supplements thereto will comply, with any applicable laws or regulations of
foreign jurisdictions in which the Final Prospectus, any Statutory Prospectus, any
prospectus wrapper or any Issuer Free Writing Prospectus, as amended or supplemented, if
applicable, are distributed in connection
3
with the Directed Share Program. The preceding sentence does not apply to statements
in or omissions from any such document based upon written information furnished to the
Company by any Underwriter through the Representatives specifically for use therein, it
being understood and agreed that the only such information is that described as such in
Section 8(c) hereof.
(iii) Ineligible Issuer Status. (i) At the time of the initial filing of the Initial
Registration Statement and (ii) at the date of this Agreement, the Company was not and is
not an “ineligible issuer”, as defined in Rule 405, including (A) the Company or any other
subsidiary in the preceding three years not having been convicted of a felony or
misdemeanor or having been made the subject of a judicial or administrative decree or order
as described in Rule 405 and (B) the Company in the preceding three years not having been
the subject of a bankruptcy petition or insolvency or similar proceeding, not having had a
registration statement be the subject of a proceeding under Section 8 of the Act and not
being the subject of a proceeding under Section 8A of the Act in connection with the
offering of the Offered Securities, all as described in Rule 405.
(iv) General Disclosure Package. As of the Applicable Time, neither (i) the General
Use Issuer Free Writing Prospectus(es) issued at or prior to the Applicable Time, the
preliminary prospectus, dated October 2, 2009 (which is the most recent Statutory
Prospectus distributed to investors generally) and the other information, if any, stated in
Schedule B hereto to be included in the General Disclosure Package, all considered together
(collectively, the “General Disclosure Package”), nor (ii) any individual Limited Use
Issuer Free Writing Prospectus, when considered together with the General Disclosure
Package, included any untrue statement of a material fact or omitted to state any material
fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The preceding sentence does not apply to
statements in or omissions from any Statutory Prospectus or any Issuer Free Writing
Prospectus in reliance upon and in conformity with written information furnished to the
Company by any Underwriter through the Representatives specifically for use therein, it
being understood and agreed that the only such information furnished by any Underwriter
consists of the information described as such in Section 8(c) hereof.
(v) Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus, as of its
issue date and at all subsequent times through the completion of the public offer and sale
of the Offered Securities or until any earlier date that the Company notified or notifies
the Representatives as described in the next sentence, did not, does not and will not
include any information that conflicted, conflicts or will conflict with the information
then contained in the Registration Statement. If at any time following issuance of an
Issuer Free Writing Prospectus there occurred or occurs an event or development as a result
of which such Issuer Free Writing Prospectus conflicted or would conflict with the
information then contained in any Registration Statement or as a result of which such
Issuer Free Writing Prospectus, if republished immediately following such event or
development, would include an untrue statement of a material fact or omitted or would omit
to state a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading, (i) the Company has promptly
notified or will promptly notify the Representatives and (ii) the Company has promptly
amended or will promptly amend or supplement such Issuer Free Writing Prospectus to
eliminate or correct such conflict, untrue statement or omission; and no order preventing
or suspending the use of any Issuer Free Writing Prospectus has been issued by the
Commission and no proceeding for that purpose has been initiated or threatened by the
Commission.
(vi) Registration Statement Exhibits. There are no contracts or other documents of a
character required to be filed as exhibits to any Registration Statement other than those
that have been filed therewith (those so filed, collectively, the “Filed Documents”).
Neither the Company nor any of its subsidiaries has knowledge that any other party to any
Filed Document has any intention not to render full performance as contemplated by the
terms thereof.
(vii) Good Standing of the Company. The Company has been duly incorporated and is
existing and in good standing under the laws of the Cayman Islands, with power and
authority (corporate and
4
other) to own its properties and conduct its business as described in the General
Disclosure Package; and the Company is duly qualified to do business as a foreign
corporation in good standing in all other jurisdictions in which its ownership or lease of
property or the conduct of its business requires such qualification, except where the
failure to be so qualified or in good standing would not reasonably be expected to have a
material adverse effect on the condition (financial or otherwise), results of operations,
business, properties or prospects of the Company and the Group Entities taken as a whole
(“Material Adverse Effect”).
(viii) Group Entities. The Company does not own or control, directly or indirectly,
any corporation, partnership, joint venture association or entity other than as set forth
in the column under the heading “Group Entities” on Appendix A (collectively, the “Group
Entities”); each Group Entity has been duly incorporated and is validly existing and in
good standing under the laws of the jurisdiction of its incorporation, with power and
authority (corporate and other) to own its properties and conduct its business as described
in the General Disclosure Package; and each Group Entity is duly qualified to do business
as a foreign corporation in good standing in all other jurisdictions in which its ownership
or lease of property or the conduct of its business requires such qualification, except
where the failure to be so qualified or in good standing would not reasonably be expected
to have a Material Adverse Effect; all of the issued and outstanding share capital and/or
equity interests, as the case may be, of each Group Entity has been duly authorized and
validly issued and is fully paid and nonassessable, except as otherwise indicated in
Appendix A, and is legally owned by such Group Entity’s respective shareholder(s) as
specified in Appendix A, and, except as provided in the Xxxx Xxxx VIE Agreements (as
defined below) and disclosed in the General Disclosure Package, the capital shares and/or
equity interests, as the case may be, of each Group Entity, are owned free from liens,
encumbrances and defects. The Company possesses, directly or indirectly, the power to
direct or cause the direction of the management and policies of each of the Group Entities.
(ix) Transaction Agreements. Each of the master transaction agreement, offshore
transitional services agreement, onshore transitional services agreement, non-competition
agreement, consulting and services agreement and onshore cooperation agreement described
under the caption “Our Relationship with E-House” and each of the shareholders agreement,
registration rights agreement, joint venture agreement and share purchase agreement
described under the caption “Related Party Transactions—Transactions and Agreements with
SINA and China Online Housing” in the General Disclosure Package (collectively, the
“Transaction Agreements”) has been duly authorized and has been, or will be upon the
closing of the transactions contemplated under the share purchase agreement (“Acquisition
Closing”), as the case may be, duly executed and delivered by the Company or a Group
Entity, as the case may be, and is, or will be upon Acquisition Closing, as the case may
be, in full force and effect, and constitutes, or will constitute upon Acquisition Closing,
as the case may be, a valid and binding obligation of the Company or such Group Entity, as
the case may be, enforceable against the Company or such Group Entity, as the case may be,
in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability
affecting creditors’ rights or by equitable principles relating to enforceability. The
execution, delivery and performance by the Company or any Group Entity of each of the
Transaction Agreements to which it is a party will not (i) conflict with or result in a
breach or violation of any of the terms or provisions of, or constitute default under, any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to
which the Company or any Group Entity is bound or to which the Company or any Group Entity
is subject, (ii) result in any violation of any applicable law or any order, rule or
regulation of any court or governmental agency or body having jurisdiction over the Company
or any Group Entity or any of their properties or assets; or (iii) result in any violation
of any provision of any constitutive documents of the Company or any Group Entity, except,
in the case of the clauses (i) and (ii), as would not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect; and no consent, approval,
authorization or order of, or filing or registration with, any court or governmental agency
or body is required for the execution and delivery by the Company or any Group Entity of,
and compliance by the Company or any Group Entity with, the provisions of
5
each of the Transaction Agreements, except such as shall have been obtained or waived and
except as contemplated in the Transaction Agreements.
(x) VIE Agreements. (A) Each party to each of the agreements described under the
caption “Related Party Transactions—Contractual Arrangements with Xxxx Xxxx Advertising”
in the General Disclosure Package relating to our corporate structure, to which any of
Shanghai Xxxx Xxxx Advertising Co., Ltd. (“Xxxx Xxxx”), Shanghai CRIC Information
Technology Co., Ltd. (“Shanghai CRIC”), and the shareholders of Xxxx Xxxx is a party
(collectively, the “Xxxx Xxxx VIE Agreements”) has the legal right, power and authority,
(corporate and other, as the case may be) to enter into and perform its respective
obligations under the Xxxx Xxxx VIE Agreements and has taken all necessary corporate action
to authorize the execution, delivery and performance of, and have authorized, executed and
delivered, each of the Xxxx Xxxx VIE Agreements; and each of the Xxxx Xxxx VIE Agreements
constitutes a valid and legally binding obligation of the parties thereto, enforceable in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability
affecting creditors’ rights or by equitable principles relating to enforceability and
except as disclosed in the General Disclosure Package. The execution and delivery by Xxxx
Xxxx, Shanghai CRIC and shareholders of Xxxx Xxxx of, and the performance by Xxxx Xxxx,
Shanghai CRIC and the shareholders of Xxxx Xxxx of their respective obligations under, each
of the Xxxx Xxxx VIE Agreements and the consummation by Shanghai CRIC, Xxxx Xxxx and the
shareholders of Xxxx Xxxx of the transactions contemplated therein did not, does not and
will not: (i) conflict with or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of trust,
lease, loan agreement or other agreement or instrument to which the Company, Shanghai CRIC,
Xxxx Xxxx or the shareholders of Xxxx Xxxx, as the case may be, are a party or by which the
Company, Shanghai CRIC, Xxxx Xxxx and the shareholders of Xxxx Xxxx are bound or to which
any of the properties or assets of the Company, Shanghai CRIC, Xxxx Xxxx or the
shareholders of Xxxx Xxxx are subject; (ii) result in any violation of the provisions of
constitutive documents or business license of the Company, Shanghai CRIC or Xxxx Xxxx, as
the case may be; or (iii) except as disclosed in the General Disclosure Package, result in
any violation of any PRC statute or any order, rule or regulation of any PRC governmental
agency having jurisdiction over the Company, Shanghai CRIC, Xxxx Xxxx, the shareholders of
Xxxx Xxxx or any of their properties, except, in the case of the clauses (i) and (iii), as
would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect.
(B) To ensure the legality, validity, enforceability and performance of each of the
Xxxx Xxxx VIE Agreements in the PRC, it is not necessary that any such document be filed or
recorded with any court or other authority in the PRC, except that (i) the exercise of the
call options under the Exclusive Call Option Agreement, dated July 20, 2009, among Shanghai
CRIC, Xxxx Xxxx and the shareholders of Xxxx Xxxx (the “Xxxx Xxxx Call Option Agreement”)
shall be approved by and/or registered with the relevant PRC governmental authorities; and
(ii) the equity pledge under the Equity Pledge Agreement, dated July 20, 2009, among
Shanghai CRIC, Xxxx Xxxx and the shareholders of Xxxx Xxxx shall be registered with the
relevant PRC governmental authorities to effect the pledge thereunder; nor is it necessary
that any stamp or similar tax be paid on or in respect of any of the Xxxx Xxxx VIE
Agreements, except for any tax implication for exercise of the call options under the Xxxx
Xxxx Call Option Agreement depending on the exercise price and the general power of tax
authority to re-assess transactions under the Xxxx Xxxx Call Option Agreement and the
Consultancy and Service Agreement, dated April 1, 2008, between Shanghai CRIC and Xxxx
Xxxx.
(xi) Offered Securities. The Offered Securities and all other outstanding shares of
capital stock of the Company have been duly authorized; the authorized equity
capitalization of the Company is as set forth in the General Disclosure Package; all
outstanding shares of capital stock of the Company are, and, when the Offered Securities
have been delivered and paid for in accordance with this Agreement on each Closing Date,
such Offered Securities will have been, validly issued, fully paid and nonassessable, will
conform to the information in the General
6
Disclosure Package and to the description of such Offered Securities contained in the Final
Prospectus; no security holder of the Company has any preemptive rights with respect to the
Offered Securities, and none of the outstanding shares of capital stock of the Company has
been issued in violation of any preemptive or similar right of any security holder; the
Offered Securities and the underlying Ordinary Shares to be sold by the Company, when
issued and delivered against payment heretofore pursuant to this Agreement, will not be
subject to any security interest, other encumbrance or adverse claims, and will have been
issued in compliance with all U.S. federal, state and Cayman Islands securities laws and
will not have been issued in violation of any preemptive right, resale right, right of
first refusal or similar right; upon payment of the purchase price in accordance with this
Agreement on each Closing Date, the Depositary or its nominee, as the registered holder of
the Ordinary Shares represented by the Offered Securities, will be, subject to the terms of
the Deposit Agreement, entitled to all the rights of a shareholder conferred by the
Memorandum and Articles of Association of the Company; except as disclosed in the General
Disclosure Package and subject to the terms and provisions of the Deposit Agreement, there
are no restrictions on transfers of Ordinary Shares represented by the Offered Securities
or the Offered Securities under the laws of the Cayman Islands, the PRC or the United
States, as the case may be; the Ordinary Shares represented by the Offered Securities may
be freely deposited by the Company with the Depositary or its nominee against issuance of
ADRs evidencing the Offered Securities as contemplated by the Deposit Agreement.
(xii) No Finder’s Fee. Except as disclosed in the General Disclosure Package, there
are no contracts, agreements or understandings between the Company and any person that
would give rise to a valid claim against the Company or any Underwriter for a brokerage
commission, finder’s fee or other like payment in connection with this offering. To the
best knowledge of the Company after due inquiry, there are no arrangements, agreements,
understandings, payments or issuance with respect to the Company, the Group Entities, or
any of their officers, directors, shareholders, partners, employees or affiliates that may
affect the Underwriters’ compensation as determined by the Financial Industry Regulatory
Authority (the “FINRA”).
(xiii) Registration Rights; Lock-Up Agreements. Except as disclosed in the General
Disclosure Package, there are no contracts, agreements or understandings between the
Company and any person granting such person the right to require the Company to file a
registration statement under the Act with respect to any securities of the Company owned or
to be owned by such person or to require the Company to include such securities in the
securities registered pursuant to a Registration Statement or in any securities being
registered pursuant to any other registration statement filed by the Company under the Act
(collectively, “Registration Rights”), and any person to whom the Company has granted
registration rights has agreed not to exercise such rights until after the expiration of
the Lock-Up Period referred to in Section 5(l) hereof. Each officer, director and
shareholder of the Company and entity with a right to acquire shares of the Company set
forth on Schedule C hereto has furnished to the Representatives on or prior to the date
hereof a letter or letters substantially in the form of Exhibit A hereto (collectively, the
“Lock-Up Agreements”).
(xiv) Absence of Further Requirements. No consent, approval, authorization, or order
of, or filing or registration with, any person (including any governmental agency or body
or any court) is required to be obtained or made by the Company for the consummation of the
transactions contemplated by this Agreement and the Deposit Agreement in connection with
the offering, issuance and sale of the Offered Securities and the deposit of the Ordinary
Shares represented by the Offered Securities with the Depositary against the issuance of
ADRs, except such as have been obtained, or made and such as may be required under state
securities laws.
(xv) Title to Property. Except as disclosed in the General Disclosure Package, the
Company and the Group Entities have good and marketable title to all real properties and
all other properties and assets owned by them, in each case free from liens, charge,
encumbrances and defects that would materially affect the value thereof or materially
interfere with the use made or to be made thereof by them, except as expressly provided in
the Xxxx Xxxx VIE Agreements; and, except as disclosed in the General Disclosure Package,
the Company and the Group Entities hold any leased real or
7
personal property under valid and enforceable leases with no terms or provisions that would
materially interfere with the use made or to be made thereof by them, provided that the
landlord of such leased real property has obtained all necessary governmental
authorizations to lease such leased real property pursuant to PRC Laws.
(xvi) Authorization of Agreement. This Agreement has been duly authorized, executed
and delivered by the Company.
(xvii) Authorization of Deposit Agreement. The Deposit Agreement has been duly
authorized, executed and delivered by the Company and, assuming due authorization,
execution and delivery by the Depositary, constitutes a valid and legally binding agreement
of the Company enforceable against the Company in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws of general applicability affecting creditors’ rights or by
equitable principles relating to enforceability. Upon due execution and delivery by the
Depositary of ADRs evidencing Offered Securities and the deposit of Ordinary Shares in
respect thereof in accordance with the provisions of the Deposit Agreement, such ADRs will
be duly and validly issued and the persons in whose names the ADRs are registered will be
entitled to the rights specified therein and in the Deposit Agreement; and the Deposit
Agreement and the ADRs conform in all material respects to the descriptions thereof
contained in the General Disclosure Package.
(xviii) Description of Transaction Documents. The description of each Transaction
Document in the Registration Statement, General Disclosure Package and Final Prospectus
conforms in all material respects to such Transaction Documents.
(xix) No Transfer Taxes. No stamp or other issuance or transfer taxes or duties and
no capital gains, income, withholding or other taxes are payable by or on behalf of the
Underwriters to the government of the Cayman Islands or the PRC, or any political
subdivision or taxing authority thereof or therein in connection with (i) the deposit with
the Depositary of Ordinary Shares by the Company against the issuance of ADRs evidencing
the Offered Securities, (ii) the sale and delivery by the Company of the Offered Securities
to or for the respective accounts of the several Underwriters or (iii) the sale and
delivery outside the Cayman Islands by the several Underwriters of the Offered Securities
to the initial purchasers thereof in the manner contemplated by this Agreement.
(xx) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance of this Agreement, and the issuance and sale of the Offered
Securities will not result in a breach or violation of any of the terms and provisions of,
or constitute a default or a Debt Repayment Triggering Event (as defined below) under, or
result in the imposition of any lien, charge or encumbrance upon any property or assets of
the Company or any of the Group Entities pursuant to, (i) the charter or by-laws of the
Company or any of the Group Entities, (ii) any statute, rule, regulation or order of any
governmental agency or body or any court, domestic or foreign, having jurisdiction over the
Company or any of the Group Entities or any of their properties, or (iii) any agreement or
instrument to which the Company or any of the Group Entities is a party or by which the
Company or any of the Group Entities is bound or to which any of the properties of the
Company or any of the Group Entities is subject; a “Debt Repayment Triggering Event” means
any event or condition that gives, or with the giving of notice or lapse of time would
give, the holder of any note, debenture, or other evidence of indebtedness (or any person
acting on such holder’s behalf) the right to require the repurchase, redemption or
repayment of all or a portion of such indebtedness by the Company or any of the Group
Entities.
(xxi) Absence of Existing Defaults and Conflicts. Neither the Company nor any of the
Group Entities is in violation of its respective charter or by-laws or in default (or with
the giving of notice or lapse of time would be in default) under any existing obligation,
agreement, covenant or condition contained in any indenture, loan agreement, mortgage,
lease or other agreement or instrument to which any of them is a party or by which any of
them is bound or to which any of the properties of any of them is subject, except such
defaults that would not, individually or in the aggregate, have a
8
Material Adverse Effect.
(xxii) Possession of Licenses and Permits. Except as disclosed in the General
Disclosure Package, the Company and the Group Entities possess, and are in compliance with
the terms of, all certificates, authorizations, franchises, licenses and permits, including
without limitation, any business licenses (“Licenses”) necessary or material to the conduct
of the business now conducted or proposed in the General Disclosure Package to be conducted
by them and have not received any notice of proceedings relating to the revocation or
modification of any Licenses that, if determined adversely to the Company or any of the
Group Entities, would individually or in the aggregate have a Material Adverse Effect.
(xxiii) Absence of Labor Dispute. No labor dispute with the employees of the Company
or any of the Group Entities exists or, to the knowledge of the Company, is imminent that
could have a Material Adverse Effect.
(xxiv) Possession of Intellectual Property. Except as disclosed in the General
Disclosure Package, the Company and the Group Entities own, possess or can acquire on
reasonable terms sufficient trademarks, trade names, patent rights, copyrights, domain
names, licenses, approvals, trade secrets, inventions, technology, know-how and other
intellectual property and similar rights, including registrations and applications for
registration thereof (collectively, “Intellectual Property Rights”) necessary or material
to the conduct of the business now operated by them, or presently employed by them, or
proposed in the General Disclosure Package to be conducted by them. Except as disclosed in
the General Disclosure Package, (i) to the Company’s knowledge, there are no rights of
third parties to any of the Intellectual Property Rights owned by the Company or its
subsidiaries, (ii) there is no material infringement, misappropriation breach, default or
other violation, or the occurrence of any event that with notice or the passage of time
would constitute any of the foregoing, by the Company or its subsidiaries of any of the
Intellectual Property Rights of the Company or its subsidiaries; (iii) there is no pending
or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others
challenging the Company’s or any subsidiary’s rights in or to, or the violation of any of
the terms of, any of their Intellectual Property Rights, and the Company is unaware of any
facts which would form a reasonable basis for any such claim; (iv) there is no pending or,
to the Company’s knowledge, threatened action, suit, proceeding or claim by others
challenging the validity, enforceability or scope of any such Intellectual Property Rights,
and the Company is unaware of any facts which would form a reasonable basis for any such
claim; (v) there is no pending or, to the Company’s knowledge, threatened action, suit,
proceeding or claim by others that the Company or any subsidiary infringes, misappropriates
or otherwise violates or conflicts with any Intellectual Property Rights or other
proprietary rights of others and the Company is unaware of any other fact which would form
a reasonable basis for any such claim; and (vi) none of the Intellectual Property Rights
used by the Company or its subsidiaries in their businesses has been obtained or is being
used by the Company or its subsidiaries in violation of any contractual obligation binding
on the Company or any of its subsidiaries in violation of the rights of any persons, except
in each case covered by clauses (i) — (vi) such as would not, if determined adversely to
the Company or any of its subsidiaries, individually or in the aggregate, have a Material
Adverse Effect.
(xxv) Environmental Laws. Except as disclosed in the General Disclosure Package,
neither the Company nor any of the Group Entities is in violation of any statute, any rule,
regulation, decision or order of any governmental agency or body or any court, domestic or
foreign, relating to the use, disposal or release of hazardous or toxic substances or
relating to the protection or restoration of the environment or human exposure to hazardous
or toxic substances (collectively, “Environmental Laws”), owns or operates any real
property contaminated with any substance that is subject to any Environmental Laws, is
liable for any off-site disposal or contamination pursuant to any Environmental Laws, or is
subject to any claim relating to any Environmental Laws, which violation, contamination,
liability or claim would individually or in the aggregate have a Material Adverse Effect;
and the Company is not aware of any pending investigation which might lead to such a claim.
9
(xxvi) Accurate Disclosure. The statements in the General Disclosure Package under
the headings “Summary”, “Risk Factors”, “Dividend Policy”, “Enforceability of Civil
Liabilities”, “Business”, “Management’s Discussion and Analysis of Financial Condition and
Results of Operations”, “Corporate History and Structure”, “Our Relationship with E-House”,
“Regulation”, “Management”, “Related Party Transactions”, “Description of Share Capital”,
“Description of American Depositary Shares”, “Shares Eligible for Future Sale”, “Taxation”
and “Underwriting”, insofar as such statements summarize legal matters, agreements,
documents or proceedings discussed therein, are accurate and fair summaries of such legal
matters, agreements, documents or proceedings and present the
[information required]
to be shown. The preceding sentence, insofar as it relates to statements in the General
Disclosure Package under the heading “Underwriting”, does not apply to information
furnished to the Company by any Underwriter through the Representatives specifically for
use therein, it being understood and agreed that the only such information is that
described as such in Section 8(c) hereof.
(xxvii) Absence of Manipulation. Neither the Company nor any director, officer,
agent, employee or affiliate of the Company or person acting on its behalf has taken,
directly or indirectly, any action that is designed to or that has constituted or that
would reasonably be expected to cause or result in, under the Exchange Act or otherwise,
the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of the Offered Securities.
(xxviii) Statistical and Market-Related Data. Any third-party statistical and
market-related data included in the General Disclosure Package are based on or derived from
sources that the Company believes to be reliable and accurate, and such data agree with the
sources from which they are derived. The Company has obtained the written consent for the
use of such data from such sources to the extent required.
(xxix) Internal Controls and Compliance with the Xxxxxxxx-Xxxxx Act. Except as set
forth in the General Disclosure Package, the Company, the Group Entities and the Company’s
Board of Directors (the “Board”) are in compliance with the provisions of Xxxxxxxx-Xxxxx
that are applicable to them and all applicable Exchange Rules. The Company maintains a
system of internal controls, including, but not limited to, disclosure controls and
procedures, internal controls over accounting matters and financial reporting, an internal
audit function and legal and regulatory compliance controls (collectively, “Internal
Controls”) that comply with the Securities Laws and are sufficient to provide reasonable
assurances that (i) transactions are executed in accordance with management’s general or
specific authorizations, (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with U.S. General Accepted Accounting Principles and
to maintain accountability for assets, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. The Internal Controls are, or
upon consummation of the offering of the Offered Securities will be, overseen by the Audit
Committee (the “Audit Committee”) of the Board in accordance with Exchange Rules. The
Company has not publicly disclosed or reported to the Audit Committee or the Board, and
within the next 90 days the Company does not reasonably expect to publicly
disclose or report to the Audit Committee or the Board, a significant deficiency, material
weakness, change in Internal Controls or fraud involving management or other employees who
have a significant role in Internal Controls (each, an “Internal Control Event”), any
violation of, or failure to comply with, the Securities Laws, or any matter which, if
determined adversely, would have a Material Adverse Effect.
(xxx) Absence of Accounting Issues. The Board has confirmed to the Chief Financial
Officer that, except as set forth in the General Disclosure Package, neither the Board nor
the Audit Committee is reviewing or investigating, and neither the Company’s independent
auditors nor its internal auditors have recommended that the Board or the Audit Committee
review or investigate, (i) adding to, deleting, changing the application of, or changing
the Company’s disclosure with respect to, any of the Company’s material accounting
policies; (ii) any matter which could result in a restatement of the Company’s financial
statements for any annual or interim period during the
10
current or prior three fiscal years; or (iii) any Internal Control Event.
(xxxi) Litigation. Except as disclosed in the General Disclosure Package, there are
no pending actions, suits or proceedings (including any inquiries or investigations by any
court or governmental agency or body, domestic or foreign) against or affecting the
Company, any of the Group Entities or any of their respective properties that, if
determined adversely to the Company or any of the Group Entities, would individually or in
the aggregate have a Material Adverse Effect, or would materially and adversely affect the
ability of the Company to perform its obligations under this Agreement or the Deposit
Agreement, or which are otherwise material in the context of the sale of the Offered
Securities; and no such actions, suits or proceedings (including any inquiries or
investigations by any court or governmental agency or body, domestic or foreign) are, to
the Company’s knowledge, threatened or contemplated.
(xxxii) Financial Statements. The consolidated financial statements included in each
Registration Statement and the General Disclosure Package, together with their related
notes and schedules, present fairly the financial position of the Company and its
consolidated entities as of the dates indicated and have been prepared in compliance with
the requirements of the Act and Exchange Act and in conformity with generally accepted
accounting principles in the United States applied on a consistent basis during the periods
involved; all pro forma financial statements included in each Registration Statement, the
General Disclosure Package and the Final Prospectus comply with or will comply with, as the
case may be, the requirements of the Act and the Exchange Act, and the assumptions used in
the preparation of such pro forma financial statements included in each Registration
Statement and the General Disclosure Package are reasonable, the pro forma adjustments used
therein are appropriate to give effect to the transactions or circumstances described
therein and the pro forma adjustments have been properly applied to the historical amounts
in the compilation of those statements; the other financial and statistical data contained
in each Registration Statement, the General Disclosure Package and the Final Prospectus are
accurately and fairly presented and prepared on a basis consistent with the financial
statements and books and records of the Company; there are no financial statements
(historical or pro forma) that are required to be included in each Registration Statement,
the General Disclosure Package or the Final Prospectus that are not included as required,
except where a waiver has been properly obtained from the Commission and in form acceptable
to the Representatives.
(xxxiii) No Material Adverse Change in Business. Except as disclosed in the General
Disclosure Package, since the end of the period covered by the latest audited financial
statements included in the Initial Registration Statement (i) there has been no change, nor
any development or event involving a prospective change, in the condition (financial or
otherwise), results of operations, business, properties or prospects of the Company and the
Group Entities, taken as a whole, that is material and adverse, (ii) except as
disclosed in or contemplated by the General Disclosure Package, there has been no dividend
or distribution of any kind declared, paid or made by the Company on any of its share
capital and (iii) except as disclosed in or contemplated by the General Disclosure Package,
there has been no material adverse change in the share capital, short-term indebtedness,
long-term indebtedness, net current assets or net assets of the Company and the Group
Entities.
(xxxiv) Investment Company Act. The Company is not and, after giving effect to the
offering and sale of the Offered Securities and the application of the proceeds thereof as
described in the General Disclosure Package, will not be an “investment company” as defined
in the Investment Company Act of 1940 as amended (the “Investment Company Act”).
(xxxv) Foreign Private Issuer. The Company is a “foreign private issuer” within the
meaning of Rule 405 under the Act.
(xxxvi) PFIC Status. The Company does not presently believe that it should be
classified as a “passive foreign investment company” (“PFIC”) as defined in Section 1297 of
the United States Internal Revenue Code of 1986, as amended (the “Code”), for the 2009
taxable year and does not [anticipate being] a PFIC in any future taxable years.
11
(xxxvii) Payments in Foreign Currency. Except as disclosed in the General Disclosure
Package, under current laws and regulations of the Cayman Islands, the PRC and any
political subdivision thereof, all dividends and other distributions declared and payable
on the Ordinary Shares underlying the Offered Securities may be paid by the Company to the
holder thereof in United States dollars that may be freely transferred out of the Cayman
Islands, the PRC and all such payments made to holders thereof or therein who are
non-residents of the Cayman Islands or the PRC will not be subject to income, withholding
or other taxes under laws and regulations of the Cayman Islands, the PRC or any political
subdivision or taxing authority thereof or therein and will otherwise be free and clear of
any other tax, duty, withholding or deduction in the Cayman Islands, the PRC or any
political subdivision or taxing authority thereof or therein and without the necessity of
obtaining any governmental consent, order, permit or other authorization in the Cayman
Islands, the PRC or any political subdivision or taxing authority thereof or therein.
(xxxviii) Business Practices. None of the Company or the Group Entities or their
affiliates, the respective officers, directors, agents, or employees of the Company or the
Group Entities while acting in the service of the Company or the Group Entities has
violated, nor shall the Company’s participation in this offering violate, any of the
following laws and regulations (collectively, the “Business Practice Regulations”): (i)
applicable anti-bribery laws, including but not limited to, any applicable law, rule, or
regulation of any locality, including but not limited to any law, rule, or regulation
promulgated to implement the OECD Convention on Combating Bribery of Foreign Public
Officials in International Business Transactions, signed December 17, 1997, including the
U.S. Foreign Corrupt Practices Act of 1977 or any other law, rule or regulation of similar
purpose and scope, or (ii) applicable anti-money laundering laws, including but not limited
to, applicable federal, state, international, foreign or other laws, regulations or
government guidance regarding anti-money laundering, including, without limitation, Title
18 U.S. Code section 1956 and 1957, the Patriot Act, the Bank Secrecy Act, and
international anti-money laundering principals or procedures by an intergovernmental group
or organization, such as the Financial Action Task Force on Money Laundering, of which the
United States is a member and with which designation the United States representative to
the group or organization continues to concur, all as amended, and any Executive order,
directive, or regulation pursuant to the authority of any of the foregoing, or any orders
or licenses issued thereunder, or (iii) applicable laws and regulations imposing U.S.
economic sanctions measures, including, but not limited to, the International Emergency
Economic Powers Act, the Trading with the Enemy Act, the United Nations Participation Act,
and the Syria Accountability and Lebanese Sovereignty Act, all as amended, and any
Executive Order, directive, or regulation pursuant to the authority of any of the
foregoing, including the regulations of the United States Treasury Department set forth
under 31 CFR, Subtitle B, Chapter V, as amended, or any orders or licenses issued
thereunder. The Company and the Group Entities have instituted and maintain policies and
procedures designed to ensure continued compliance with the Business Practice Regulations.
(xxxix) Absence of Unlawful Influence. The Company has not offered or sold, or
caused the Underwriters to offer or sell, any Offered Securities to any person pursuant to
the Directed Share Program with the specific intent to unlawfully influence (i) a customer
or supplier of the Company to alter the customer’s or supplier’s level or type of business
with the Company or (ii) a trade journalist or publication to write or publish favorable
information about the Company or its products.
(xl) Action against the Company. Under the laws of the Cayman Islands, no holder of
ADSs issued pursuant to the Deposit Agreement shall be entitled, except under the terms of
the Deposit Agreement, to seek enforcement of its rights through the Depositary or its
nominee registered as representative of the holders of the ADSs in a direct suit, action or
proceeding against the Company.
(xli) Choice of Law. The choice of the laws of the State of New York as the governing
law of the Underwriting Agreement and the Deposit Agreement is a valid choice of law under
the laws of the Cayman Islands and the PRC and will be honored by courts in the Cayman
Islands and the
12
PRC, subject to the conditions and restrictions described under the caption “Enforceability
of Civil Liabilities” in the General Disclosure Package and subject to applicable
provisions of the Civil Procedure Law and the General Principles of Civil Law of the PRC
relating to choice of foreign laws. The Company has the power to submit, and pursuant to
Section 17 of this Agreement and Section 19 of the Deposit Agreement, has legally,
validly, effectively and irrevocably submitted, to the personal jurisdiction of each New
York State and United States Federal court sitting in the Borough of Manhattan, The City of
New York (each, a “New York Court”) and has validly and irrevocably waived any objection
to the laying of venue of any suit, action or proceeding brought in any such court; and the
Company has the power to designate, appoint and authorize, and pursuant to Section 17 of
this Agreement and Section 19 of the Deposit Agreement, has legally, validly, effectively
and irrevocably designated, appointed and authorized, an agent for service of process in
any action arising out of or relating to this Agreement, the Deposit Agreement, or the
transactions contemplated hereby or thereby in any New York Court, and service of process
in any manner permitted by applicable laws effected on such authorized agent will be
effective to confer valid personal jurisdiction over the Company as provided herein or in
the Deposit Agreement.
Any final judgment for a fixed or readily calculable sum of money rendered by a New York
Court having jurisdiction under its own domestic laws in respect of any suit, action or
proceeding against the Company based upon the Transaction Documents and any instruments or
agreements entered into for the consummation of the transactions contemplated therein (i)
would be declared enforceable against the Company without re-examination or review of the
merits of the cause of action in respect of which the original judgment was given or
re-litigation of the matters adjudicated upon or payment of any stamp, registration or
similar tax or duty by the courts of the Cayman Islands, provided that (A) adequate service
of process has been effected and the defendant has had a reasonable opportunity to be
heard, (B) such judgments or the enforcement thereof are not contrary to the law, public
policy, security or sovereignty of the Cayman Islands, (C) such judgments were not obtained
by fraudulent means and do not conflict with any other valid judgment in the same matter
between the same parties, and (D) an action between the same parties in the same matter is
not pending in any Cayman Islands court at the time the lawsuit is instituted in the
foreign court, and (ii) may be recognized and enforced by the courts of the PRC subject to
the conditions and restrictions described under the caption “Enforceability of Civil
Liabilities” in the General Disclosure Package and Final Prospectus. The Company is not
aware of any reason why the enforcement in the Cayman Islands or the PRC of such a New York
Court judgment would be, as of the date hereof, contrary to public policy of the Cayman
Islands or the PRC.
(xlii) Related Party Transactions. All the related party transactions required to be
disclosed under the Securities Laws are disclosed in the General Disclosure Package and the
Final Prospectus under the heading “Related Party Transactions”, and such disclosure is
true and accurate in all material respects.
(xliii) No Undisclosed Relationships. No relationship, direct or indirect, exists
between or among the Company or any of the Group Entities, on the one hand, and the
directors, officers, shareholders, customers or suppliers of the Company or any of the
Group Entities, on the other, that is required by the Act to be described in the General
Disclosure Package and the Final Prospectus and that is not so described in such documents.
(xliv) Compliance with PRC Regulations. Each of the Company and the Group Entities
that were incorporated outside of the PRC has complied with, and has taken, or is in the
process of taking reasonable steps to ensure compliance by each of its shareholders and
option holders that is, or is directly or indirectly owned or controlled by, a PRC resident
or citizen with any applicable rules and regulations of the relevant PRC government
agencies (including but not limited to the Ministry of Commerce, the National Development
and Reform Commission and the State Administration of Foreign Exchange) relating to
overseas investment by PRC residents and citizens (the “PRC Overseas Investment and Listing
Regulations”), including, without limitation, requesting each shareholder and option holder
that is, or is directly or indirectly owned
13
or controlled by, a PRC resident or citizen to complete any registration and other
procedures required under applicable PRC Overseas Investment and Listing Regulations.
(xlv) PRC Mergers and Acquisitions Rules. The Company is aware of and has been advised
as to the content of the Rules on Mergers and Acquisitions of Domestic Enterprises by
Foreign Investors (the “PRC Mergers and Acquisition Rules”) jointly promulgated by the
Ministry of Commerce, the State Assets Supervision and Administration Commission, the State
Tax Administration, the State Administration of Industry and Commerce, the China Securities
Regulatory Commission (the “CSRC”) and the State Administration of Foreign Exchange of the
PRC on August 8, 2006, as amended on June 22, 2009, including the relevant provisions
thereof which purport to require offshore special purpose entities controlled directly or
indirectly by PRC domestic companies or individuals and formed for overseas listing
purposes through acquisitions of PRC domestic interests held by such PRC domestic companies
or individuals, to obtain the approval of the CSRC prior to the listing and trading of
their securities on an overseas stock exchange. The Company has received legal advice
specifically with respect to the PRC Mergers and Acquisitions Rules from its PRC counsel
and the Company understands such legal advice. Subject to the disclosure under the heading
“Regulation—Regulation on Overseas Listing” in the General Disclosure Package, the
issuance and sale of the Offered Securities, the listing and trading of the Offered
Securities on the Nasdaq Global Market or the consummation of the transactions contemplated
by the Transaction Documents is not and will not be, as of the date hereof or at each
Closing Date, as the case may be, adversely affected by the PRC Mergers and Acquisitions
Rules or any official clarifications, guidance, interpretations or implementation rules in
connection with or related to the PRC Mergers and Acquisitions Rules.
(xlvi) FINRA Affiliation. There are no affiliations or associations between (i) any
member of FINRA and (ii) the Company or any of the Company’s officers, directors or 5% or
greater security holders or any beneficial owner of the Company’s unregistered equity
securities that were acquired at any time on or after the 180th day immediately
preceding the date the Registration Statement was first submitted to the Commission.
(xlvii) Representation of Officers. Any certificate signed by any officer of the
Company and delivered to the Representatives as required or contemplated by this Agreement
shall constitute a representation and warranty hereunder by the Company, as to matters
covered thereby, to each Underwriter.
(xlviii) Taxes. The Company and each of the Group Entities have filed all tax returns,
reports and filings that are required to be filed or have requested extensions thereof
(except in any case in which the failure so to file would not have a Material Adverse
Effect); and, except as set forth in the General Disclosure Package, the Company and its
subsidiaries have paid all taxes (including any assessments, fines or penalties) required
to be paid by them, except for any such taxes, assessments, fines or penalties as would
not, individually or in the aggregate, have a Material Adverse Effect; neither the Company
nor any of the Group Entities has received a notice of deficiency with respect to the
Company or any of the Group Entities, except for such notices the effect of which would not
result in a Material Adverse Effect; and the provisions included in the audited
consolidated financial statements contained in the General Disclosure Package include
appropriate provisions required under the U.S. GAAP for all taxation in respect of
accounting periods needed on or before the accounting reference due to which such audited
consolidated financial statements relate, for which the Company was then or might
reasonably be expected thereafter to become or have become liable.
(xlix) No Immunity. None of the Company, the Group Entities, and any of their
properties, assets or revenues is entitled to any right of immunity on the grounds of
sovereignty from any legal action, suit or proceeding, from set-off or counterclaim, from
the jurisdiction of any court, from services of process, from attachment prior to or in aid
of execution of judgment, or from any other legal process or proceeding for the giving of
any relief or for the enforcement of any judgment. The irrevocable and unconditional waiver
and agreement of the Company in this
14
Agreement and the Deposit Agreement not to plead or claim any such immunity in any legal
action, suit or proceeding arising out of or relating to this Agreement and the Deposit
Agreement is valid and binding under the laws of the Cayman Islands and the PRC.
(l) No Restrictions on Dividends from Subsidiary. Except as disclosed in the General
Disclosure Package, no subsidiary of the Company is currently prohibited, directly or
indirectly, under any applicable laws or regulations, any agreement or other instrument to
which it is a party or is subject, from paying dividends to the Company, from making any
other distribution on such subsidiaries’ capital stock, from repaying to the Company any
loans or advances to such subsidiary from the Company or from transferring any of such
subsidiary’s properties or assets to the Company or any other subsidiary of the Company.
(b) Representations and Warranties Related to COH Entities. The Company represents and
warrants to the several Underwriters the following:
(i) Good Standing of the COH Entities. China Online Housing Technology Corporation
(“COH”) and each of the entities that it directly or indirectly owns or controls as listed
in Appendix B (collectively, the “COH Entities”) has been duly incorporated and is validly
existing and in good standing under the laws of the jurisdiction of its incorporation, with
power and authority (corporate and other) to own its properties and conduct its business as
described in the General Disclosure Package; COH does not directly or indirectly own or
control any entity other than the COH Entities; and each COH Entity is duly qualified to do
business as a foreign corporation in good standing in all other jurisdictions in which its
ownership or lease of property or the conduct of its business requires such qualification,
except where the failure to be so qualified or in good standing would not reasonably be
expected to have a material adverse effect on the condition (financial or otherwise),
results of operations, business, properties or prospects of the COH Entities taken as a
whole (“COH Material Adverse Effect”) or a Material Adverse Effect; all of the issued and
outstanding share capital and/or equity interests, as the case may be, of each COH Entity
has been duly authorized and validly issued and, except as specified in Appendix B, is
fully paid and nonassessable, and, except as provided in the Leju VIE Agreements (as
defined below) and disclosed in the General Disclosure Package, the capital shares and/or
equity interests, as the case may be, of each COH Entity, are owned free from liens,
encumbrances and defects.
(ii) VIE Agreements. Each party to each of the agreements listed on Appendix C
(collectively, the “Existing Leju VIE Agreements”) and each of the agreements described
under the caption “Related Party Transactions—Contractual Arrangements with Beijing
Yisheng Leju” in the General Disclosure Package, which will become effective upon the
Acquisition Closing pursuant to the share purchase agreement dated July 23, 2009 between
the Company and SINA Corporation (collectively, the “New Leju VIE Agreements”, and together
with the Existing Leju VIE Agreement, the “Leju VIE Agreements”), relating to our corporate
structure, to which any of Beijing Yisheng Leju Information Services Co., Ltd. (“Beijing
Yisheng Leju”), Shanghai SINA Leju Information Technology Co., Ltd. (“Shanghai Leju”), and
the shareholders of Beijing Yisheng Leju is a party, has the legal right, power and
authority, (corporate and other, as the case may be) to enter into and perform its
respective obligations under the Leju VIE Agreements and has taken all necessary corporate
action to authorize the execution, delivery and performance of, and have authorized,
executed and delivered, each of the Leju VIE Agreements; and each of the Existing Leju VIE
Agreements constitutes, and each of the New Leju VIE Agreement will constitute upon the
Acquisition Closing, a valid and legally binding obligation of the parties thereto,
enforceable in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws of general
applicability affecting creditors’ rights or by equitable principles relating to
enforceability and except as disclosed in the General Disclosure Package; the execution and
delivery by Beijing Yisheng Leju, Shanghai Leju and the shareholders of Beijing Yisheng
Leju of, and the performance by Beijing Yisheng Leju, Shanghai Leju and the shareholders of
Beijing Yisheng Leju of their respective obligations under, each of the Leju VIE
Agreements, and the consummation by Shanghai Leju, Beijing Yisheng Leju and the
shareholders of Beijing Yisheng Leju of the transactions contemplated therein did not, does
not
15
and will not: (i) conflict with or result in a breach or violation of any of the terms
or provisions of, or constitute a default under, any indenture, mortgage, deed of trust,
lease, loan agreement or other agreement or instrument to which the Company, Shanghai Leju,
Beijing Yisheng Leju or the shareholders of Beijing Yisheng Leju, as the case may be, are a
party or by which the Company, Shanghai Leju, Beijing Yisheng Leju and the shareholders of
Beijing Yisheng Leju are bound or to which any of the properties or assets of the Company,
Shanghai Leju, Beijing Yisheng Leju or the shareholders of Beijing Yisheng Leju are
subject; (ii) result in any violation of the provisions of constitutive documents or
business license of the Company, Shanghai Leju or Beijing Yisheng Leju, as the case may be;
or (iii) except as disclosed in the General Disclosure Package, result in any violation of
any PRC statute or any order, rule or regulation of any PRC governmental agency having
jurisdiction over the Company, Shanghai Leju, Beijing Yisheng Leju, the shareholders of
Beijing Yisheng Leju or any of their properties, except, in the case of clauses (i) and
(iii), as would not reasonably be expected to have a COH Material Adverse Effect or a
Material Adverse Effect.
(iii) No Filing of VIE Agreements. To ensure the legality, validity, enforceability
and performance of each of the Leju VIE Agreements in the PRC, it is not necessary that any
such document be filed or recorded with any court or other authority in the PRC, except
that (i) the exercise of the call options under the Exclusive Call Option Agreement dated
September 29, 2009 among Beijing Yisheng Leju, Shanghai Leju, Xxxxxx Xxx and Xxx Xxx , the
Share Transfer Agreement dated May 8, 2008 between Xxx Xxx and Shanghai Leju, and the Share
Transfer Agreement dated May 8, 2008 between Xxxxxxxx Xxxx and Shanghai Leju (collectively,
the “Leju Call Option Agreements”) shall be approved by and/or registered with the relevant
PRC governmental authorities; and (ii) the equity pledge under the Equity Pledge Agreement
dated September 29, 2009 among Beijing Yisheng Leju, Shanghai Leju, Xxxxxx Xxx and Xxx Xxx,
the Equity Pledge Agreement dated May 8, 2008 between Xxx Xxx and Shanghai Leju, and the
Equity Pledge Agreement dated May 8, 2008 between Xxxxxxxx Xxxx and Shanghai Leju shall be
registered with the relevant PRC governmental authorities to effect the pledge thereunder;
nor is it necessary that any stamp or similar tax be paid on or in respect of any of the
Leju VIE Agreements, except for any tax implication for exercise of the call options under
the Leju Call Option Agreements depending on the exercise price and the general power of
tax authority to re-assess transactions under the Leju Call Option Agreements, the
Exclusive Technical Support Agreement dated May 28, 2008 between Beijing Yisheng Leju and
Shanghai Leju, and the Trademark License Agreement dated May 8, 2008 between Beijing
Yisheng Leju and Shanghai Leju.
(iv) COH Transaction Agreements. Each of the amended and restated advertising agency
agreement, domain name and content license agreement, trademark license agreement and
software license and support services agreement described under the caption “Related Party
Transactions—Transactions and Agreements with SINA and China Online Housing” in the
General Disclosure Package (collectively, the “COH Transaction Agreements”) has been duly
authorized, executed and delivered by any COH Entity which by its terms is a party thereto,
will be upon effectiveness in full force and effect, and will upon the Acquisition Closing
constitute a valid and binding obligation of such COH Entity, enforceable against such COH
Entity in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability
affecting creditors’ rights or by equitable principles relating to enforceability. The
execution, delivery and performance by any COH Entity of each of the COH Transaction
Agreements to which by its terms it is a party will not (i) conflict with or result in a
breach or violation of any of the terms or provisions of, or constitute default under, any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to
which any COH Entity is bound or to which any COH Entity is subject, (ii) result in any
violation of any applicable law or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over any COH Entity or any of its
properties or assets; or (iii) result in any violation of any provision of any constitutive
documents of any COH Entity, except, in the case of
16
clause (i) and (ii), as would not reasonably be expected to have a COH Material
Adverse Effect or a Material Adverse Effect; and no consent, approval, authorization or
order of, or filing or registration with, any court or governmental agency or body is
required for the execution and delivery by any COH Entity of, and compliance with, the
provisions of each of the Transaction Agreements, except where failure to obtain such
consent, approval, authorization or order, or to make such filing or registration, would
not prevent or materially delay the consummation by any COH Entity of the transactions
contemplated by the COH Transaction Agreements and except as contemplated in the
Transaction Agreements.
(v) Title to Property. Except as disclosed in the General Disclosure Package, the COH
Entities have good and marketable title to all real properties and all other properties and
assets owned by them, in each case free from liens, charge, encumbrances and defects that
would materially affect the value thereof or materially interfere with the use made or to
be made thereof by them, except as expressly provided in the Leju VIE Agreements; and,
except as disclosed in the General Disclosure Package, the COH Entities hold any leased
real or personal property under valid and enforceable leases with no terms or provisions
that would materially interfere with the use made or to be made thereof by them, provided
that the landlord of such leased real property has obtained all necessary governmental
authorization to lease such leased real property pursuant to PRC Laws.
(vi) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance of this Agreement, and the issuance and sale of the Offered
Securities will not result in a breach or violation of any of the terms and provisions of,
or constitute a default or a Debt Repayment Triggering Event under, or result in the
imposition of any lien, charge or encumbrance upon any property or assets of any of the COH
Entities pursuant to, (i) the charter or by-laws of any of the COH Entities, (ii) any
statute, rule, regulation or order of any governmental agency or body or any court,
domestic or foreign, having jurisdiction over any of the COH Entities or any of their
properties, or (iii) any agreement or instrument to which any of the COH Entities is a
party or by which any of the COH Entities is bound or to which any of the properties of any
of the COH Entities is subject.
(vii) Absence of Existing Defaults and Conflicts. None of the COH Entities is in
violation of its respective charter or by-laws. Each of contracts and agreements, whether
or not made in the ordinary course of business, which are material to the China Online
Entities as a whole or the conduct of the business of China Online Entities as described in
the General Disclosure Package, or the absence of which would have a COH Material Adverse
Effect or a Material Adverse Effect, (i) is in full force and effect and (ii) upon
consummation of the transactions contemplated by the COH Transaction Agreements shall
continue in full force and effect without penalty or other adverse
consequence, except as expressly contemplated by the Transaction
Agreements. None of the
COH Entities are in default (or with the giving of notice or lapse of time would be in
default) under any existing obligation, agreement, covenant or condition contained in any
indenture, loan agreement, mortgage, lease or other agreement or instrument to which any of
them is a party or by which any of them is bound or to which any of the properties of any
of them is subject, except such defaults that would not, individually or in the aggregate,
have a COH Material Adverse Effect or a Material Adverse Effect.
(viii) Possession of Licenses and Permits. Except as disclosed in the General
Disclosure Package, the COH Entities possess, and are in compliance with the terms of, all
adequate Licenses necessary or material to the conduct of the business now conducted by
them and have not received any notice of proceedings relating to the revocation or
modification of any Licenses that, if determined adversely to any of the COH Entities,
would individually or in the aggregate have a COH Material Adverse Effect or a Material
Adverse Effect.
(ix) Absence of Labor Dispute. No labor dispute with the employees of any of the COH
Entities exists or, to the knowledge of the Company, is imminent that could have a COH
Material Adverse Effect or a Material Adverse Effect.
17
(x) Possession of Intellectual Property. Except as disclosed in the General
Disclosure Package, the COH Entities own, possess or can acquire on reasonable terms
sufficient Intellectual Property Rights necessary or material to the conduct of the
business now operated by them, or presently employed by them, or proposed in the General
Disclosure Package to be conducted by them. Except as disclosed in the General Disclosure
Package, (i) there are no rights of third parties to any of the Intellectual Property
Rights owned by the COH Entities, (ii) there is no material infringement, misappropriation
breach, default or other violation, or the occurrence of any event that with notice or the
passage of time would constitute any of the foregoing, by the COH Entities of any of the
Intellectual Property Rights of the COH Entities; (iii) there is no pending or, to the
Company’s knowledge, threatened action, suit, proceeding or claim by others challenging any
COH Entity’s rights in or to, or the violation of any of the terms of, any of their
Intellectual Property Rights, and the Company is unaware of any facts which would form a
reasonable basis for any such claim; (iv) there is no pending or, to the Company’s
knowledge, threatened action, suit, proceeding or claim by others challenging the validity,
enforceability or scope of any such Intellectual Property Rights, and the Company is
unaware of any facts which would form a reasonable basis for any such claim; (v) there is
no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by
others that any COH Entity infringes, misappropriates or otherwise violates or conflicts
with any Intellectual Property Rights or other proprietary rights of others and the Company
is are unaware of any other fact which would form a reasonable basis for any such claim;
and (vi) none of the Intellectual Property Rights used by the COH Entities in their
businesses has been obtained or is being used by the COH Entities in violation of any
contractual obligation binding on the COH Entities in violation of the rights of any
persons, except in each case covered by clauses (i) — (vi) such as would not, if
determined adversely to any COH Entity, individually or in the aggregate, have a COH
Material Adverse Effect or a Material Adverse Effect.
(xi) Environmental Laws. Except as disclosed in the General Disclosure Package, none
of the COH Entities is in violation of any Environmental Laws, owns or operates any real
property contaminated with any substance that is subject to any Environmental Laws, is
liable for any off-site disposal or contamination pursuant to any Environmental Laws, or is
subject to any claim relating to any Environmental Laws, which violation, contamination,
liability or claim would individually or in the aggregate have a COH Material Adverse
Effect or a Material Adverse Effect; and the Company is not aware of any pending
investigation which might lead to such a claim.
(xii) Internal Controls and Compliance with the Xxxxxxxx-Xxxxx Act. Except as set
forth in the General Disclosure Package, the COH Entities are in compliance with the
provisions of Xxxxxxxx-Xxxxx that are applicable to them and all applicable Exchange Rules.
(xiii) Financial Statements. The financial statements included in each Registration
Statement and the General Disclosure Package comply as to form in all material respects
with the requirements of Regulation S-X under the Act and present fairly the financial
position of COH and the COH Entities as of the dates shown and their results of operations
and cash flows for the periods shown, and such financial statements have been prepared in
conformity with the generally accepted accounting principles in the United States applied
on a consistent basis; and the schedules included in each Registration Statement present
fairly the information required to be stated therein.
(xiv) Litigation. Except as disclosed in the General Disclosure Package, there are no
pending actions, suits or proceedings (including any inquiries or investigations by any
court or governmental agency or body, domestic or foreign) against or affecting any of the
COH Entities or any of their respective properties that, if determined adversely to any of
the COH Entities, would individually or in the aggregate have a COH Material Adverse Effect
or a Material Adverse Effect, or would materially and adversely affect the ability of the
Company to perform its obligations under this Agreement or the Deposit Agreement, or which
are otherwise material in the context of the sale of the Offered Securities; and no such
actions, suits or proceedings (including any inquiries or
investigations by any court or governmental agency or body, domestic or foreign) are,
to the Company’s knowledge, threatened or contemplated.
18
(xv) No Material Adverse Change in Business. Except as disclosed in the General
Disclosure Package, since the end of the period covered by the latest audited financial
statements included in the Initial Registration Statement (i) there has been no change, nor
any development or event involving a prospective change, in the condition (financial or
otherwise), results of operations, business, properties or prospects of the COH Entities,
taken as a whole, that is material and adverse, and (ii) except as disclosed in
or contemplated by the General Disclosure Package, there has been no material adverse
change in the share capital, short-term indebtedness, long-term indebtedness, net current
assets or net assets of the COH Entities.
(xvi) Business Practices. None of the COH Entities or their affiliates, the respective
officers, directors, agents, or employees of the COH Entities while acting in the service
of the Company or the COH Entities has violated any Business Practice Regulations. The COH
Entities have instituted and maintain policies and procedures designed to ensure continued
compliance with the Business Practice Regulations.
(xvii) Compliance with PRC Regulations. Each of COH Entities that were incorporated
outside of the PRC has used its best efforts to comply with, and has taken, or is in the
process of taking reasonable steps to ensure compliance by each of its shareholders and
option holders, that is, or is directly or indirectly owned or controlled by, a PRC
resident or citizen with any applicable PRC Overseas Investment and Listing Regulations,
including, without limitation, requesting each shareholder, and option holder that is, or
is directly or indirectly owned or controlled by, a PRC resident or citizen to complete any
registration and other procedures required under applicable PRC Overseas Investment and
Listing Regulations.
(xviii) Taxes. Each of the COH Entities have filed all tax returns, reports and
filings that are required to be filed or have requested extensions thereof (except in any
case in which the failure so to file would not have a COH Material Adverse Effect or a
Material Adverse Effect); and, except as set forth in the General Disclosure Package, the
COH Entities have paid all taxes (including any assessments, fines or penalties) required
to be paid by them, except for any such taxes, assessments, fines or penalties as would
not, individually or in the aggregate, have a COH Material Adverse Effect or a Material
Adverse Effect; None of the COH Entities has received a notice of deficiency with respect
to any of the COH Entities, except for such notices the effect of which would not result in
a COH Material Adverse Effect or Material Adverse Effect; and the provisions included in
the audited consolidated financial statements contained in the General Disclosure Package
include appropriate provisions required under the U.S. GAAP for all taxation in respect of
accounting periods needed on or before the accounting reference due to which such audited
consolidated financial statements relate, for which the COH Entities was then or might
reasonably be expected thereafter to become or have become liable.
(xix) No Immunity. None of the COH Entities, and none of their properties, assets or
revenues is entitled to any right of immunity on the grounds of sovereignty from any legal
action, suit or proceeding, from set-off or counterclaim, from the jurisdiction of any
court, from services of process, from attachment prior to or in aid of execution of
judgment, or from any other legal process or proceeding for the giving of any relief or for
the enforcement of any judgment.
(xx) No Restrictions on Dividends from Subsidiary. Except as disclosed in the General
Disclosure Package, no subsidiary of COH is currently prohibited, directly or indirectly, under
any applicable laws or regulations, any agreement or other instrument to which it is a
party or is subject, from paying dividends to the Company, from making any other
distribution on such subsidiaries’ capital stock, from repaying to the Company any loans or
advances to such COH Entity from the Company or from transferring any of such COH Entity’s
properties or assets to the Company or any COH Entity or Group Entity.
3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Company
agrees to sell to each
19
Underwriter, and each Underwriter agrees, severally and not jointly, to
purchase from the Company at a purchase price of $[ ] per ADS (representing the initial public
offering price less the underwriting discount), the respective number of Firm Securities set forth
opposite the names of the Underwriters in Schedule A hereto, plus any additional number of Firm
Securities which such Underwriter may become obligated to purchase pursuant to the provisions of
Section 10 hereof (rounded up or down at the discretion of the Representatives to avoid fractions).
The Company will deliver the Firm Securities to or as instructed by the Representatives for
the accounts of the several Underwriters through the facilities of The Depository Trust Company
(“DTC”) in a form reasonably acceptable to the Representatives against payment of the purchase
price in Federal (same day) funds by official bank check or checks or wire transfer to an account
at a bank acceptable to the Representatives drawn to the order of the Company, at the office of
O’Melveny & Xxxxx LLP, 31st Floor, AIA Central, 0 Xxxxxxxxx Xxxx Xxxxxxx, Xxxx Xxxx, at
[ ] A.M., New York time, on [ ], or at such other time not later than seven full business days
thereafter as the Representatives and the Company determine, such time being herein referred to as
the “First Closing Date”. For purposes of Rule 15c6-1 under the Exchange Act, the First Closing
Date (if later than the otherwise applicable settlement date) shall be the settlement date for
payment of funds and delivery of securities for all the Offered Securities sold pursuant to the
offering. The ADRs evidencing the Firm Securities will be in book
entry form, in such
denominations and registered in such names as the Representatives request and will be delivered
through the facilities of the DTC. The specimen of the ADRs will be made available for checking at
the above office or such other place designated by the Representatives at least 24 hours prior to
the First Closing Date.
In addition, upon written notice from the Representatives given to the Company from time to
time not more than 30 days subsequent to the date of the Final Prospectus, the Underwriters may
purchase all or less than all of the Optional Securities at the purchase price per ADS to be paid
for the Firm Securities. The Company agrees to sell to the Underwriters the number of Optional
Securities specified in such notice and the Underwriters agree, severally and not jointly, to
purchase such Optional Securities. Such Optional Securities shall be purchased for the account of
each Underwriter in the same proportion as the number of Firm Securities set forth opposite such
Underwriter’s name bears to the total number of Firm Securities (subject to adjustment by the
Representatives to eliminate fractions) and may be purchased by the Underwriters only for the
purpose of covering over-allotments made in connection with the sale of the Firm Securities. No
Optional Securities shall be sold or delivered unless the Firm Securities previously have been, or
simultaneously are, sold and delivered. The right to purchase the Optional Securities or any
portion thereof may be exercised from time to time and to the extent not previously exercised may
be surrendered and terminated at any time upon notice by the Representatives to the Company.
Each time for the delivery of and payment for the Optional Securities, being herein referred
to as an “Optional Closing Date”, which may be the First Closing Date (the First Closing Date and
each Optional Closing Date, if any, being sometimes referred to as a “Closing Date”), shall be
determined by the Representatives but shall be not later than five full business days after written
notice of election to purchase Optional Securities is given. The Company will deliver the Optional
Securities being purchased on each Optional Closing Date to or as instructed by the Representatives
for the accounts of the several Underwriters in a form reasonably acceptable to the
Representatives, against payment of the purchase price therefor in Federal (same day) funds by
official bank check or checks or wire transfer to an account at a bank acceptable to the
Representatives drawn to the order of the Company at the above office. The Optional Securities
being purchased on each Optional Closing Date or evidence of their issuance will be made available
for checking at the above office at a reasonable time in advance of such Optional Closing Date.
4. Offering by Underwriters. It is understood that the several Underwriters propose to offer
the Offered Securities for sale to the public as set forth in the Final Prospectus.
5. Certain Agreements of the Company. The Company agrees with the several Underwriters that:
(a) Additional Filings. Unless filed pursuant to Rule 462(c) as part of the Additional
Registration
Statement in accordance with the next sentence, the Company will file the Final Prospectus, in
a form approved by the Representatives, with the Commission pursuant to and in accordance with
subparagraph (1)
20
(or, if applicable and if consented to by the Representatives, subparagraph (4))
of Rule 424(b) not later than the earlier of (i) the second business day following the execution
and delivery of this Agreement or (ii) the fifteenth business day after the Effective Time of the
Initial Registration Statement. The Company will advise the Representatives promptly of any such
filing pursuant to Rule 424(b) and provide satisfactory evidence to the Representatives of such
timely filing. If an Additional Registration Statement is necessary to register a portion of the
Offered Securities under the Act but the Effective Time thereof has not occurred as of the
execution and delivery of this Agreement, the Company will file the Additional Registration
Statement or, if filed, will file a post-effective amendment thereto with the Commission pursuant
to and in accordance with Rule 462(b) on or prior to 10:00 P.M., New York time, on the date of this
Agreement or, if earlier, on or prior to the time the Final Prospectus is finalized and distributed
to any Underwriter, or will make such filing at such later date as shall have been consented to by
the Representatives.
(b) Filing of Amendments; Response to Commission Requests. The Company will promptly advise
the Representatives of any proposal to amend or supplement at any time the Initial Registration
Statement, any Additional Registration Statement or any Statutory Prospectus and will not effect
such amendment or supplementation without the Representatives’ consent (which consent shall not be
unreasonably withheld or delayed); and the Company will also advise the Representatives promptly of
(i) the effectiveness of any Additional Registration Statement (if its Effective Time is subsequent
to the execution and delivery of this Agreement), (ii) any amendment or supplementation of a
Registration Statement or any Statutory Prospectus, (iii) any request by the Commission or its
staff for any amendment to any Registration Statement, for any supplement to any Statutory
Prospectus or for any additional information, (iv) the institution by the Commission of any stop
order proceedings in respect of a Registration Statement or the threatening of any proceeding for
that purpose, and (v) the receipt by the Company of any notification with respect to the suspension
of the qualification of the Offered Securities in any jurisdiction or the institution or
threatening of any proceedings for such purpose. The Company will use its best efforts to prevent
the issuance of any such stop order or the suspension of any such qualification and, if issued, to
obtain as soon as possible the withdrawal thereof.
(c) Continued Compliance with Securities Laws. If, at any time when a prospectus relating to
the Offered Securities is (or but for the exemption in Rule 172 would be) required to be delivered
under the Act by any Underwriter or dealer, any event occurs as a result of which the Final
Prospectus as then amended or supplemented would include an untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it is necessary at any time to
amend the Registration Statement or supplement the Final Prospectus to comply with the Act, the
Company will promptly notify the Representatives of such event and will promptly prepare and file
with the Commission and furnish, at its own expense, to the Underwriters and the dealers and any
other dealers upon request of the Representatives, an amendment or supplement which will correct
such statement or omission or an amendment which will effect such compliance. Neither the
Representatives’ consent to, nor the Underwriters’ delivery of, any such amendment or supplement
shall constitute a waiver of any of the conditions set forth in Section 7 hereof.
(d) Rule 158. As soon as practicable, but not later than the Availability Date (as defined
below), the Company will make generally available to its security holders an earnings statement
covering a period of at least 12 months beginning after the Effective Time of the Initial
Registration Statement (or, if later, the Effective Time of the Additional Registration Statement)
which will satisfy the provisions of Section 11(a) of the Act and Rule 158 under the Act. For the
purpose of the preceding sentence, “Availability Date” means the 45th day after the end of the
fourth fiscal quarter following the fiscal quarter that includes such Effective Time, except that,
if such fourth fiscal quarter is the last quarter of the Company’s fiscal year, “Availability Date”
means the 180th day after the end of such fourth fiscal quarter.
(e) Furnishing of Prospectuses. The Company will furnish to the Representatives copies of
each Registration Statement (three of which will be signed and will include all exhibits and the
remainder of which may be provided without exhibits), each related Statutory Prospectus, and, so
long as a prospectus relating to the Offered Securities is (or but for the exemption in Rule 172
would be) required to be delivered
under the Act, the Final Prospectus and all amendments and supplements to such documents, in
each case in such quantities as the Representatives may reasonably request. The Final Prospectus
shall be so furnished on
21
or prior to 3:00 P.M., New York time, on the second business day following
the execution and delivery of this Agreement. All other such documents shall be so furnished as
soon as available. The Company will pay the expenses of printing and distributing to the
Underwriters all such documents.
(f) Blue Sky Qualifications. The Company will arrange for the qualification of the Offered
Securities for sale under the laws of such jurisdictions as the Representatives designate and will
continue such qualifications in effect so long as required for the distribution.
(g) Reporting Requirements. During the period of five years hereafter, the Company will
furnish to the Representatives and, upon request, to each of the other Underwriters, as soon as
practicable after the end of each fiscal year, a copy of its annual report to stockholders for such
year; and the Company will furnish to the Representatives (i) as soon as available, a copy of each
report and any definitive proxy statement of the Company filed with the Commission under the
Exchange Act or mailed to stockholders, and (ii) from time to time, such other information
concerning the Company as the Representatives may reasonably request. However, so long as the
Company is subject to the reporting requirements of either Section 13 or Section 15(d) of the
Exchange Act and is timely filing reports with the Commission on its Electronic Data Gathering,
Analysis and Retrieval system (“XXXXX”), it is not required to furnish such reports or statements
to the Underwriters.
(h) Payment of Expenses. The Company will pay all expenses incident to the performance of
its obligations under this Agreement, including but not limited to any filing fees and other
expenses (excluding fees and disbursements of counsel to the Underwriters) incurred in connection
with qualification of the Offered Securities for sale under the laws of such jurisdictions as the
Representatives designate and the preparation and printing of memoranda relating thereto, costs and
expenses related to the review by FINRA of the Offered Securities (including filing fees), costs
and expenses relating to investor presentations or any “road show” in connection with the offering
and sale of the Offered Securities including, without limitation, any travel expenses of the
Company’s officers and employees and any other expenses of the Company including the chartering of
airplanes, fees and expenses incident to listing the Offered Securities on the NASDAQ Global
Market, fees and expenses in connection with the registration of the Offered Securities under the
Exchange Act, and expenses incurred in distributing preliminary prospectuses and the Final
Prospectus (including any amendments and supplements thereto) to the Underwriters and for expenses
incurred for preparing, printing and distributing any Issuer Free Writing Prospectuses to investors
or prospective investors.
(i) Use of Proceeds. The Company will use the net proceeds received by it in connection with
this offering in the manner described in the “Use of Proceeds” section of the General Disclosure
Package and the Final Prospectus, and the Company does not intend to use any of the proceeds from
the sale of the Offered Securities hereunder to repay any outstanding debt owed to any affiliate of
any Underwriter.
(j) Absence of Manipulation. The Company will not take, directly or indirectly, any action
designed to or that would constitute or that might reasonably be expected to cause or result in,
stabilization or manipulation of the price of any securities of the Company to facilitate the sale
or resale of the Offered Securities.
(k) Taxes. The Company will indemnify and hold harmless the Underwriters against any
documentary, stamp or similar issuance or transfer taxes, including any interest and penalties, on
the creation, issue and sale of the Offered Securities and on the execution and delivery of this
Agreement. All payments to be made by the Company hereunder shall be made without withholding or
deduction for or on account of any present or future taxes, duties or governmental charges
whatsoever unless the Company is compelled by law to deduct or withhold such taxes, duties or
charges. In that event, the Company shall pay such additional amounts as may be necessary in order
that the net amounts received after such withholding or deduction shall equal the amounts that
would have been received if no withholding or deduction had been made.
(l) Restriction on Sale of Securities by Company. For the period specified below (the
“Lock-Up Period”), the Company will not, directly or indirectly, take any of the following actions
with respect to its Ordinary Shares or ADSs, or any securities convertible into or exchangeable or
exercisable for any of its
22
Ordinary Shares or ADSs (“Lock-Up Securities”): (i) offer, sell, issue,
contract to sell, pledge or otherwise dispose of Lock-Up Securities, (ii) offer, sell, issue,
contract to sell, contract to purchase or grant any option, right or warrant to purchase Lock-Up
Securities, (iii) enter into any swap, hedge or any other agreement that transfers, in whole or in
part, the economic consequences of ownership of Lock-Up Securities, (iv) establish or increase a
put equivalent position or liquidate or decrease a call equivalent position in Lock-Up Securities
within the meaning of Section 16 of the Exchange Act or (v) file with the Commission a registration
statement under the Act relating to Lock-Up Securities, or publicly disclose the intention to take
any such action, without the prior written consent of the Representatives. The foregoing
restrictions shall not apply to (A) the issuance of Ordinary Shares represented by the Offered
Securities and the sale of the Offered Securities hereunder, (B) the issuance of Ordinary Shares to
SINA Corporation pursuant to the share purchase agreement dated July 23, 2009 between the Company
and SINA Corporation, (C) the grants of equity-based awards pursuant to the terms of the Company’s
existing share incentive plan and the issuance of Ordinary Shares upon exercise of options or
vesting of restricted shares that have been previously granted and are outstanding as of the date
hereof, or (D) the filing of a registration statement on Form S-8 in connection with the
registration of Ordinary Shares issuable under the Company’s existing share incentive plan. The
initial Lock-Up Period will commence on the date hereof and continue for 180 days after the date
hereof or such earlier date that the Representatives consent to in writing; provided, however, that
if (i) during the last 17 days of the initial Lock-Up Period, the Company releases earnings results
or material news or a material event relating to the Company occurs or (ii) prior to the expiration
of the initial Lock-Up Period, the Company announces that it will release earnings results or
becomes aware that material news or a material event will occur during the 16-day period beginning
on the last day of the initial Lock-Up Period, then in each case the Lock-Up Period will be
extended until the expiration of the 18-day period beginning on the date of release of the earnings
results or the occurrence of the materials news or material event, as applicable, unless the
Representatives waive, in writing, such extension. The Company will provide the Representatives
with notice of any announcement described in clause (ii) of the preceding sentence that gives rise
to an extension of the Lock-Up Period.
(m) Transfer Restrictions. The Company will at all times maintain transfer restrictions
(including the inclusion of legends in share certificates, as may be required) with respect to the
Company’s Ordinary Shares which are subject to transfer restrictions pursuant to this Agreement and
the Lock-Up Agreements and shall ensure compliance with such restrictions on transfer of restricted
Ordinary Shares.
(n) Listing of Securities. The Company will use its best efforts to have the Offered
Securities accepted for listing on the Nasdaq Global Market and maintain the listing of the Offered
Securities on the Nasdaq Global Market.
(o) Filing of Reports. The Company, during the period when a prospectus (or, in lieu thereof,
the notice referred to in Rule 173(a) under the Act) is required to be delivered under the Act in
connection with the offer or sale of the Offered Securities, will file all reports and other
documents required to be filed by the Company with the Commission pursuant to Section 13(a), 13(c),
14 or 15(d) of the Exchange Act and the Rules and Regulations within the time periods required
thereby.
(p) License of Trademarks. Upon request of any Underwriter, the Company will furnish, or cause
to be furnished, to such Underwriter an electronic version of the Company’s trademarks,
servicemarks and corporate logo for use on the website, if any, operated by such Underwriter for
the purpose of facilitating the offering of the Offered Securities.
(q) Judgment and Approval. The Company agrees that (i) it will not attempt to avoid any
judgment applied or denied to it in a court of competent jurisdiction outside the Cayman Islands;
(ii) following the consummation of the offering of the Offered Securities, it will use its best
efforts to obtain and maintain all approvals required in the Cayman Islands to pay and remit
outside the Cayman Islands all dividends declared by the Company and payable on the Ordinary
Shares, if any; and (iii) it will use its best efforts to
obtain and maintain all approvals required in the Cayman Islands for the Company to acquire
sufficient foreign exchange for the payment of dividends, if any, and all other relevant purposes.
23
(r) Deposit of Shares. The Company will, prior to the First Closing Date or the Additional
Closing Date, as the case may be, deposit the Ordinary Shares to be represented by the Offered
Securities with the Depositary in accordance with the provisions of the Deposit Agreement and
otherwise comply with the Deposit Agreement so that ADSs will be issued by the Depositary against
receipt of such Ordinary Shares and delivered to the Underwriters at the Closing Date or the
Additional Closing Date, as the case may be.
(s) Compliance with SAFE Rules and Regulations. The Company will use its best efforts to
comply in all material respects with any applicable rules and regulations of the State
Administration of Foreign Exchange (the “SAFE Rules and Regulations”), and will use its reasonable
efforts to cause its option holders and shareholders named in the Company’s share register that
are, or that are directly or indirectly owned or controlled by, PRC residents or PRC citizens, to
comply in all material respects with the SAFE Rules and Regulations applicable to them in
connection with their interests in the Company, including, without limitation, requesting each
shareholder named in the Company’s share register and option holder that is, or is directly or
indirectly owned or controlled by, a PRC resident or PRC citizen to complete any registration and
other procedures required under applicable SAFE Rules and Regulations.
(t) Compliance with Xxxxxxxx-Xxxxx. The Company will use its best efforts to comply with
Xxxxxxxx-Xxxxx, and to use its best efforts to cause the Company’s directors and officers, in their
capacities as such, to comply with Xxxxxxxx-Xxxxx.
(u) D&O Insurance. The Company maintains or, prior to the First Closing Date, the Company will
purchase insurance covering its directors, officers for liabilities or losses arising in connection
with this offering, including, without limitation, liabilities or losses arising under the Act, the
Exchange Act and the Rules and Regulations.
(v) Compliance with Foreign Laws. The Company shall arrange for the qualification of the
Offered Securities for sale under the foreign or state securities or Blue Sky laws of such
jurisdictions as the Representatives designate and will continue such qualifications in effect so
long as required for the distribution.
6. Free Writing Prospectuses. The Company represents and agrees that, unless it obtains the
prior consent of the Representatives, and each Underwriter represents and agrees that, unless it
obtains the prior consent of the Company and the Representatives, it has not made and will not make
any offer relating to the Offered Securities that would constitute an Issuer Free Writing
Prospectus, or that would otherwise constitute a “free writing prospectus”, as defined in Rule 405,
required to be filed with the Commission. Any such free writing prospectus consented to by the
Company and the Representatives is hereinafter referred to as a “Permitted Free Writing
Prospectus.” The Company represents that it has treated and agrees that it will treat each
Permitted Free Writing Prospectus as an “issuer free writing prospectus”, as defined in Rule 433,
and has complied and will comply with the requirements of Rules 164 and 433 applicable to any
Permitted Free Writing Prospectus, including timely Commission filing where required, legending and
record keeping. The Company represents that is has satisfied and agrees that it will satisfy the
conditions in Rule 433 to avoid a requirement to file with the Commission any electronic road show.
7. Conditions of the Obligations of the Underwriters. The obligations of the several
Underwriters to purchase and pay for the Firm Securities on the First Closing Date and the Optional
Securities to be purchased on each Optional Closing Date will be subject to the accuracy of the
representations and warranties of the Company herein (as though made on such Closing Date), to the
accuracy of the statements of Company officers made pursuant to the provisions hereof, to the
performance by the Company of its obligations hereunder and to the following additional conditions
precedent:
(a) Accountants’ Comfort Letter. The Representatives shall have received letters, dated,
respectively, the date hereof and each Closing Date, of Deloitte Touche Tohmatsu CPA Ltd. and
PricewaterhouseCoopers Xxxxx Xxxx CPAs Limited Company in substantially the form set forth in
Exhibits B
and C hereto, respectively (except that, in any letter dated a Closing Date, the specified
date referred to in Exhibits B and C hereto shall be a date no more than three days prior to such
Closing Date).
24
(b) Effectiveness of Registration Statement. If the Effective Time of the Additional
Registration Statement (if any) is not prior to the execution and delivery of this Agreement, such
Effective Time shall have occurred not later than 10:00 P.M., New York time, on the date of this
Agreement or, if earlier, the time the Final Prospectus is finalized and distributed to any
Underwriter, or shall have occurred at such later time as shall have been consented to by the
Representatives. The Final Prospectus shall have been filed with the Commission in accordance with
the Rules and Regulations and Section 5(a) hereof. Prior to such Closing Date, no stop order
suspending the effectiveness of a Registration Statement shall have been issued and no proceedings
for that purpose shall have been instituted or, to the knowledge of the Company or the
Representatives, shall be contemplated by the Commission, and any request on the part of the
Commission for additional information shall have been complied with. A prospectus containing the
Rule 430A Information shall have been filed with the Commission in the manner and within the time
frame required by Rule 424(b) without reliance on Rule 424(b)(8) or a post-effective amendment
providing such information shall have been filed and declared effective in accordance with the
requirements of Rule 430A.
(c) No Material Adverse Change. Subsequent to the execution and delivery of this Agreement,
there shall not have occurred (i) any change, or any development or event involving a prospective
change, in the condition (financial or otherwise), results of operations, business, properties or
prospects of the Company and the Group Entities taken as a whole which, in the judgment of the
Representatives, is material and adverse and makes it impractical or inadvisable to market the
Offered Securities; (ii) any change in either U.S., Cayman Islands, PRC or international financial,
political or economic conditions or currency exchange rates or exchange controls, the effect of
which is such as to make it, in the judgment of the Representatives, impractical to market or to
enforce contracts for the sale of the Offered Securities, whether in the primary market or in
respect of dealings in the secondary market; (iii) any suspension or material limitation of trading
in securities generally on the Nasdaq Global Market or the New York Stock Exchange, or any setting
of minimum or maximum prices for trading on such exchange; (iv) any suspension of trading of any
securities of the Company or E-House (China) Holdings Ltd.
(“E-House”) on any exchange or in the over-the-counter market; (v) any banking
moratorium declared by any U.S. federal, New York, Cayman Islands or PRC authorities; (vi) any
major disruption of settlements of securities, payment or clearance services in the United States,
the Cayman Islands, or the PRC or any other country where such securities are listed or (vii) any
attack on, outbreak or escalation of hostilities or act of terrorism involving the United States,
the Cayman Islands, or the PRC, any declaration of war by Congress or any other national or
international calamity or emergency if, in the judgment of the Representatives, the effect of any
such attack, outbreak, escalation, act, declaration, calamity or emergency is such as to make it
impractical or inadvisable market the Offered Securities or to enforce contracts for the sale of
the Offered Securities.
(d) Opinion of U.S. Counsel for the Company. The Representatives shall have received an
opinion, dated such Closing Date, of Skadden, Arps, Slate, Xxxxxxx & Xxxx LLP, counsel for the
Company, addressed to the Underwriters, substantially to the effect set forth in Exhibit D hereto.
(e) Opinions of Cayman Islands and British Virgin Islands Counsel for the Company. The
Representatives shall have received the opinions, dated such Closing Date, of Xxxxxx and Calder,
Cayman Islands and British Virgin Islands counsel for the Company, addressed to the Underwriters,
substantially to the effect set forth in Exhibit E hereto.
(f) Opinions of Hong Kong Counsel for the Company. The Representatives shall have received
the opinions, dated such Closing Date, of Li & Partners, Hong Kong Counsel for the Company,
addressed to the Underwriters, substantially to the effect set forth in Exhibit F hereto.
(g) Opinion of PRC Counsel for the Company. The Representatives shall have received an
opinion, dated such Closing Date, of Fangda Partners, PRC counsel for the Company, addressed to the
Company substantially to the effect set forth in Exhibit G hereto.
(i) Opinion of Depositary’s Counsel. The Representatives shall have received an opinion,
dated such Closing Date, of Xxxxxxx, Xxxxxxx & Associates
LLP, counsel for the Depositary, addressed to the Underwriters,
substantially to the effect set forth in Exhibit H hereto.
25
(i) Opinion of U.S. Counsel for the Underwriters. The Representatives shall have received
from O’Melveny & Xxxxx LLP, counsel for the Underwriters, such opinion or opinions, dated such
Closing Date, with respect to such matters as the Representatives may require, and the Company
shall have furnished to such counsel such documents as they request for the purpose of enabling
them to pass upon such matters.
(j) Opinion of PRC Counsel for the Underwriters. The Representatives shall have received from
Commerce & Finance Law Office, counsel for the Underwriters, such opinion or opinions, dated such
Closing Date, with respect to such matters as the Representatives may require, and the Company
shall have furnished to such counsel such documents as they request for the purpose of enabling
them to pass upon such matters.
(k) No Legal Impediment to Issuance. No action shall have been taken and no statute, rule,
regulation or order shall have been enacted, adopted or issued by any federal, state or foreign
governmental or regulatory authority that would, as of such Closing Date, prevent the issuance or
sale of the Offered Securities; and no injunction or order of any federal, state or foreign court
shall have been issued that would, as of such Closing Date, prevent the issuance or sale of the
Offered Securities.
(l) Officer’s Certificate. The Representatives shall have received a certificate, dated such
Closing Date, of an executive officer of the Company and a principal financial or accounting
officer of the Company in which such officers shall state that: the representations and warranties
of the Company in this Agreement are true and correct; the Company has complied with all agreements
and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to such
Closing Date; no stop order suspending the effectiveness of any Registration Statement has been
issued and no proceedings for that purpose have been instituted or, to the best of their knowledge
and after reasonable investigation, are contemplated by the Commission; the Additional Registration
Statement (if any) satisfying the requirements of subparagraphs (1) and (3) of Rule 462(b) was
timely filed pursuant to Rule 462(b), including payment of the applicable filing fee in accordance
with Rule 111(a) or (b) of Regulation S-T of the Commission; and, subsequent to the date of the
most recent financial statements in the General Disclosure Package and the Final Prospectus, there
has been no material adverse change, nor any development or event involving a prospective material
adverse change, in the condition (financial or otherwise), results of operations, business,
properties or prospects of the Company and the Group Entities taken as a whole except as set forth
in the General Disclosure Package or as described in such certificate.
(m) E-House’s Certificate. The Representatives shall have received a certificate, dated
such Closing Date, of an executive officer of E-House, in which such officer shall state that: the
representations and warranties of E-House in this Agreement are true and correct as of such Closing
Date; and E-House has complied with all agreements and satisfied all conditions on its part to be
performed or satisfied hereunder at or prior to such Closing Date.
(n) Lock-Up Agreements. On or prior to the date hereof, the Representatives shall have
received the Lock-Up Agreements and each Lock-Up Agreement shall remain in full force and effect.
(o) Depositary’s Certificate. The Depositary shall have furnished or caused to be furnished
to the Underwriters a certificate satisfactory to the Representatives of one of its authorized
officers with respect to the deposit with it of the Ordinary Shares represented by the Offered
Securities against issuance of the ADRs evidencing the Offered Securities, the execution, issuance,
countersignature and delivery of the ADRs evidencing the Offered Securities pursuant to the
Deposit Agreement and such other matters related thereto as the Representatives may reasonably
request.
(p) Exchange Listing. The Offered Securities shall have been approved to be listed on the
Nasdaq Global Market.
(q) Execution of Deposit Agreement. The Company and the Depositary shall have executed and
delivered the Deposit Agreement and the Deposit Agreement shall be in full force and effect and the
Company and the Depositary shall have taken all action necessary to permit the deposit of the
Ordinary Shares and the issuance of the Offered Securities in accordance with the Deposit
Agreement.
26
(r) Payment of Commission Fees. The Company shall have paid the required Commission filing
fees relating to the Offered Securities in such amount and within the time frame provided in the
Act and the Rule 456(b)(1) thereunder.
(s) No FINRA Objection. FINRA shall not have raised any objection with respect to the
fairness or reasonableness of the underwriting or other arrangements of the transaction
contemplated hereby.
(t) DTC Eligibility. On or prior to the First Closing Date, the Offered Securities shall be
eligible for clearance and settlement through the facilities of DTC.
(u) No Unapproved Supplemental Disclosure. No Issuer Free Writing Prospectus, Prospectus or
amendment or supplement to the Registration Statement, the ADS Registration Statement or the
Prospectus shall have been filed without the written consent of the Representatives.
The Company will furnish the Representatives with such conformed copies of such opinions,
certificates, letters and documents as the Representatives reasonably request. The Representatives
may in their sole discretion waive on behalf of the Underwriters compliance with any conditions to
the obligations of the Underwriters hereunder, whether in respect of an Optional Closing Date or
otherwise.
8. Indemnification and Contribution. (a) Indemnification of Underwriters by the Company.
The Company will indemnify and hold harmless each Underwriter, its partners, members, directors,
officers, employees, agents, affiliates and each person, if any who controls such Underwriter
within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (each an “Indemnified
Party”), against any and all losses, claims, damages or liabilities, joint or several, to which
such Indemnified Party may become subject, under the Act, the Exchange Act, other Federal or state
statutory law or regulation or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any part of any Registration Statement at any
time, any Statutory Prospectus as of any time, the Final Prospectus or any Issuer Free Writing
Prospectus, or arise out of or are based upon the omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not misleading, and will
reimburse each Indemnified Party for any legal or other expenses reasonably incurred by such
Indemnified Party in connection with investigating or defending against any loss, claim, damage,
liability, action, litigation, investigation or proceeding whatsoever (whether or not such
Indemnified Party is a party thereto), whether threatened or commenced, and in connection with the
enforcement of this provision with respect to any of the above as such expenses are incurred;
provided, however, that the Company will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged
untrue statement in or omission or alleged omission from any of such documents in reliance upon and
in conformity with written information furnished to the Company by any Underwriter through the
Representatives specifically for use therein, it being understood and agreed that the only such
information furnished by any Underwriter consists of the information described as such in
subsection (c) below.
(b) Indemnification of Underwriters by E-House. E-House will indemnify and hold harmless
each Indemnified Party against any and all losses, claims, damages or liabilities, joint or
several, to which such Indemnified Party may become subject, under the Act, the Exchange Act, other
Federal or state statutory law or regulation or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of a material fact contained in any Registration Statement at any time,
any Statutory Prospectus as of any time, the Final Prospectus or any Issuer Free Writing
Prospectus, or arise out of or are based upon any omission or alleged omission to state a material
fact required to be stated therein or necessary to make the statements therein not misleading, and
will reimburse each Indemnified Party for any legal or other expenses reasonably incurred by such
Indemnified Party in connection with investigating or defending against any
loss, claim, damage, liability, action, litigation, investigation or proceeding whatsoever (whether
or not such Indemnified Party is a party thereto), whether threatened or commenced, and in
connection with the enforcement of this provision with respect to any of the above as such expenses
are incurred; provided, however, that E-House will not be liable in any such case to the extent
that any such loss, claim, damage or
27
liability arises out of or is based upon an untrue statement
or alleged untrue statement in or omission or alleged omission from any of such documents in
reliance upon and in conformity with written information furnished to the Company by any
Underwriter through the Representatives specifically for use therein, it being understood and
agreed that the only such information furnished by any Underwriter consists of the information
described as such in subsection (c) below; provided further, that none of the Indemnified Parties
shall be entitled to seek indemnification under this subsection (b) from E-House unless both of the
following conditions are met: (i) the Indemnified Parties shall first have sought indemnity from
the Company in writing under subsection (a) and (ii) the Company has not satisfied such request for
indemnification in full within 30 days of written notification. Notwithstanding the foregoing, an
Indemnified Parties shall not be required to make an initial demand on the Company if the Company
has filed for bankruptcy protection, announced that it is insolvent, received a going-concern
qualification from its independent public accountants, or announced that there is considerable
doubt that it will be able to continue as a going concern.
(c) Indemnification of the Company and E-House. Each Underwriter will severally and not
jointly indemnify and hold harmless the Company, each of its directors and each of its officers who
signs a Registration Statement and each person, if any, who controls the Company within the meaning
of Section 15 of the Act or Section 20 of the Exchange Act and E-House (each, an “Underwriter
Indemnified Party”) against any losses, claims, damages or liabilities to which such Underwriter
Indemnified Party may become subject, under the Act, the Exchange Act, or other Federal or state
statutory law or regulation or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any Registration Statement at any time, any
Statutory Prospectus at any time, the Final Prospectus or any Issuer Free Writing Prospectus or
arise out of or are based upon the omission or the alleged omission of a material fact required to
be stated therein or necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue statement or omission
or alleged omission was made in reliance upon and in conformity with written information furnished
to the Company by such Underwriter through the Representatives specifically for use therein, and
will reimburse any legal or other expenses reasonably incurred by such Underwriter Indemnified
Party in connection with investigating or defending against any such loss, claim, damage,
liability, action, litigation, investigation or proceeding whatsoever (whether or not such
Underwriter Indemnified Party is a party thereto), whether threatened or commenced, based upon any
such untrue statement or omission, or any such alleged untrue statement or omission as such
expenses are incurred, it being understood and agreed that the only such information furnished by
any Underwriter consists of the following information in the Final Prospectus furnished on behalf
of each Underwriter: the concession and reallowance figures appearing in the fifth paragraph under
the caption “Underwriting” and the information contained in the third, twelfth, thirteenth,
sixteenth and eighteenth paragraphs under the caption “Underwriting”.
(d) Actions against Parties; Notification. Promptly after receipt by an indemnified party
under this Section of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party under subsection (a), (b) or
(c) above, notify the indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve it from any liability that it may have under subsection (a),
(b) or (c) above except to the extent that it has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure; and provided further that the
failure to notify the indemnifying party shall not relieve it from any liability that it may have
to an indemnified party otherwise than under subsection (a), (b) or (c) above. In case any such
action is brought against any indemnified party and it notifies an indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate therein and, to the
extent that it may wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except
with the consent of the indemnified party, be counsel to the indemnifying party), and after notice
from the indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such indemnified party under this Section for
any legal or other expenses subsequently incurred by such indemnified party in connection with
the defense thereof other than reasonable costs of investigation. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any settlement of any pending or
threatened action in respect of which any indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party unless such settlement (i) includes an unconditional release of such indemnified
28
party from all liability on any claims that
are the subject matter of such action and (ii) does not include a statement as to, or an admission
of, fault, culpability or a failure to act by or on behalf of an indemnified party.
(e) Contribution. If the indemnification provided for in this Section is unavailable or
insufficient to hold harmless an indemnified party under subsection (a), (b) or (c) above, then
each indemnifying party shall contribute to the amount paid or payable by such indemnified party as
a result of the losses, claims, damages or liabilities referred to in subsection (a), (b) or (c)
above (i) in such proportion as is appropriate to reflect the relative benefits received by the
Company and E-House on the one hand and the Underwriters on the other from the offering of the
Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of the Company and E-House on the one hand and the
Underwriters on the other in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities as well as any other relevant equitable considerations. The
relative benefits received by the Company and E-House on the one hand and the Underwriters on the
other shall be deemed to be in the same proportion as the total net proceeds from the offering
(before deducting expenses) received by the Company bear to the total underwriting discounts and
commissions received by the Underwriters. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Company or the Underwriters and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. The amount paid by an
indemnified party as a result of the losses, claims, damages or liabilities referred to in the
first sentence of this subsection (e) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any
action or claim which is the subject of this subsection (e). Notwithstanding the provisions of this
subsection (e), no Underwriter shall be required to contribute any amount in excess of the amount
by which the total price at which the Securities underwritten by it and distributed to the public
were offered to the public exceeds the amount of any damages which such Underwriter has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters’ obligations in this subsection (e) to contribute are several
in proportion to their respective underwriting obligations and not joint. The Company, E-House and
the Underwriters agree that it would not be just and equitable if contribution pursuant to this
Section 8(e) were determined by pro rata allocation (even if the Underwriters were treated as one
entity for such purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in this Section 8(e).
9. Representations and Obligations of E-House.
(a) Representations. This Agreement has been duly authorized, executed and delivered by
E-House. Each of the Transaction Agreements to which E-House is by its terms a party has been duly
authorized, and has been, or will be upon Acquisition Closing, as the case may be, duly executed
and delivered by E-House, is, or will be upon Acquisition Closing, in full force and effect, and
constitutes, or will constitute upon Acquisition Closing, as the case may be, valid and binding
obligations of E-House enforceable against E-House in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws of general applicability affecting creditors’ rights or by equitable principles
relating to enforceability. The execution, delivery and performance by E-House of each Transaction
Agreement to which it is a party will not (i) conflict with or result in a breach or violation of
any of the terms or provisions of, or constitute default under, any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which E-House is bound or to which
E-House is subject, (ii) result in any violation of any applicable law or any order, rule or
regulation of any court or governmental agency or body having jurisdiction over E-House or any of
its properties or assets; or (iii) result in any violation of any provision of any constitutive
documents of E-
House, except, in the case of the clauses (i) and (ii), as would not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect; and no consent, approval,
authorization or order of, or filing or registration with, any court or governmental agency or body
is required for the execution and delivery by E-House of, and compliance by E-House with, the
provisions of each of the Transaction
29
Agreements to which it is a party, except such as shall have
been obtained or waived.
(b) Absence of Manipulation. E-House agrees that it will not take and will ensure that none
of its affiliates (within the meaning of that term in Rule 144 under the Securities Act) take,
directly or indirectly, any action designed to or that would constitute or that might reasonably be
expected to cause or result in, stabilization or manipulation of the price of any securities of the
Company to facilitate the sale or resale of the Offered Securities.
(c) Distribution of Information. Prior to the expiration of the 25th day after the
date hereof, E-House will notify the Representatives at least five days in advance of any
communications that it or any of its affiliates plans to have with any research analysts (as
defined in NASD Rule 2711), and will not conduct such communication or otherwise distribute any
written communication relating to this offering without the written consent of the Representatives.
10. Default of Underwriters. If any Underwriter or Underwriters default in their obligations
to purchase Offered Securities hereunder on either the First or any Optional Closing Date and the
aggregate number of Offered Securities that such defaulting Underwriter or Underwriters agreed but
failed to purchase does not exceed 10% of the total number of Offered Securities that the
Underwriters are obligated to purchase on such Closing Date, the Representatives may make
arrangements satisfactory to the Company for the purchase of such Offered Securities by other
persons, including any of the Underwriters, but if no such arrangements are made by such Closing
Date, the non-defaulting Underwriters shall be obligated severally, in proportion to their
respective commitments hereunder, to purchase the Offered Securities that such defaulting
Underwriters agreed but failed to purchase on such Closing Date. If any Underwriter or Underwriters
so default and the aggregate number of Offered Securities with respect to which such default or
defaults occur exceeds 10% of the total number of Offered Securities that the Underwriters are
obligated to purchase on such Closing Date and arrangements satisfactory to the Representatives and
the Company for the purchase of such Offered Securities by other persons are not made within 36
hours after such default, this Agreement will terminate without liability on the part of any
non-defaulting Underwriter or the Company, except as provided in Section 11 (provided that if such
default occurs with respect to Optional Securities after the First Closing Date, this Agreement
will not terminate as to the Firm Securities or any Optional Securities purchased prior to such
termination). As used in this Agreement, the term “Underwriter” includes any person substituted for
an Underwriter under this Section. Nothing herein will relieve a defaulting Underwriter from
liability for its default.
11. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation, or statement as to
the results thereof, made by or on behalf of any party hereto or any of their respective
representatives, officers or directors or any controlling person, and will survive delivery of and
payment for the Offered Securities. If the purchase of the Offered Securities by the Underwriters
is not consummated for any reason other than solely because of the termination of this Agreement
pursuant to Section 10 hereof, the Company will reimburse the Underwriters for all out-of-pocket
expenses (including fees and disbursements of counsel) reasonably incurred by them in connection
with the offering of the Offered Securities, and the respective obligations of the Company and the
Underwriters pursuant to Section 8 hereof shall remain in effect. In addition, if any Offered
Securities have been purchased hereunder, the representations and warranties in Section 2 and all
obligations under Section 5 shall also remain in effect.
12. Notices. All communications hereunder will be in writing and, if sent to the
Underwriters, will be mailed, delivered or telegraphed and confirmed to the Representatives, Credit
Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, N.Y. 10010-3629, Attention: LCD-IBD,
and UBS AG, 52/F, Two International Finance Centre, 0 Xxxxxxx Xxxxxx, Xxxxxxx, Xxxx Xxxx,
Xxxxxxxxx: Legal and Compliance; or, if
sent to the Company, will be mailed, delivered or telegraphed and confirmed to it at China Real
Estate Information Corporation, Xx. 000 Xxxxxxxx Xxxx, Xxxxxxxx
000000, Xxxxxx’s Republic of China,
Attention: Ms. Bin Xxxxxxxx; or, if sent to E-House, will be mailed, delivered or telegraphed and
confirmed to it at E-House (China) Holdings Limited, 17/F, Merchandise Harvest Bdg, Xx. 000 Xxxxx
Xxxxxxx Xxxx, Xxxxxxxx
30
200041, People’s Republic of China, Attention: Xx. Xx-Xxx Xxxxx; provided,
however, that any notice to an Underwriter pursuant to Section 8 will be mailed, delivered or
telegraphed and confirmed to such Underwriter.
13. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers and directors and controlling persons
referred to in Section 8, and no other person will have any right or obligation hereunder.
14. Representation. The Representatives will act for the several Underwriters in connection
with the transactions contemplated by this Agreement, and any action under this Agreement taken by
the Representatives jointly or by either Representative individually will be binding upon all the
Underwriters.
15. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all such counterparts shall together constitute one
and the same Agreement.
16. Absence of Fiduciary Relationship. The Company acknowledges and agrees that:
(a) No Other Relationship. The Representatives have been retained solely to act as
underwriters in connection with the sale of the Offered Securities and that no fiduciary, advisory
or agency relationship between the Company, on the one hand, and the Representatives, on the other,
has been created in respect of any of the transactions contemplated by this Agreement or the Final
Prospectus, irrespective of whether the Representatives have advised or is advising the Company on
other matters;
(b) Arms’ Length Negotiations. The price of the Offered Securities set forth in this
Agreement was established by the Company following discussions and arms-length negotiations with
the Representatives, and the Company is capable of evaluating and understanding and understands and
accepts the terms, risks and conditions of the transactions contemplated by this Agreement;
(c) Absence of Obligation to Disclose. The Company has been advised that the Representatives
and their affiliates are engaged in a broad range of transactions which may involve interests that
differ from those of the Company and that the Representatives have no obligation to disclose such
interests and transactions to the Company by virtue of any fiduciary, advisory or agency
relationship; and
(d) Waiver. The Company waives, to the fullest extent permitted by law, any claims they may
have against the Representatives for breach of fiduciary duty or alleged breach of fiduciary duty
and agree that the Representatives shall have no liability (whether direct or indirect) to the
Company in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim
on behalf of or in right of the Company, including its shareholders, employees or creditors.
17. Applicable Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.
The Company and E-House hereby submit to the non-exclusive jurisdiction of the Federal and
state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby. The Company and
E-House irrevocably and unconditionally waive any objection to the laying of venue of any suit or
proceeding arising out of or relating to this Agreement or the transactions contemplated hereby in
Federal and state courts in the Borough of Manhattan in the City of New York and irrevocably and
unconditionally waive and agree not to plead or claim in any such court that any such suit or
proceeding in any such court has been brought in an inconvenient forum. Each of the Company and
E-House irrevocably appoints Law Debenture Corporate Services Inc., 000
Xxxxxxx Xxxxxx, 0xx Xxxxx Xxx Xxxx, Xxx Xxxx 00000, as its authorized agent in the Borough of
Manhattan in The City of New York upon which process may be served in any such suit or proceeding,
and agrees that service of process upon such agent, and written notice of said service to the
Company or E-House by the person serving the same to the address provided in Section 11 shall be
deemed in every respect effective
31
service of process upon the Company or E-House in any such suit
or proceeding. The Company and E-House further agree to take any and all action as may be
necessary to maintain such designation and appointment of such agent in full force and effect for a
period of seven years from the date of this Agreement.
The obligation of the Company and E-House pursuant to this Agreement in respect of any sum due
to any Underwriter shall, notwithstanding any judgment in a currency other than United States
dollars, not be discharged until the first business day following receipt by such Underwriter of
any sum adjudged to be so due in such other currency, on which (and only to the extent that) such
Underwriter may in accordance with normal banking procedures purchase United States dollars with
such other currency; if the United States dollars so purchased are less than the sum originally due
to such Underwriter hereunder, the Company and E-House agree, as a separate obligation and
notwithstanding any such judgment, to indemnify such Underwriter against such loss. If the United
States dollars so purchased are greater than the sum originally due to such Underwriter hereunder,
such Underwriter agrees to pay to the Company or E-House, as the case may be, an amount equal to
the excess of the dollars so purchased over the sum originally due to such Underwriter hereunder.
32
If the foregoing is in accordance with the Representatives’ understanding of our agreement, kindly
sign and return to the Company one of the counterparts hereof, whereupon it will become a binding
agreement among the Company, E-House and the several Underwriters in accordance with its terms.
Very truly yours,
China Real Estate Information
Corporation |
||||
By | ||||
[Insert title] | ||||
E-House (China) Holdings Ltd. |
||||
By | ||||
[Insert title] |
The foregoing Underwriting Agreement is hereby confirmed and accepted as of the date first above written. Acting on behalf of themselves and as the Representatives of the several Underwriters. By Credit Suisse Securities (USA) LLC |
||||
By: | ||||
Name: | ||||
Title: | ||||
By UBS AG |
||||
By: | ||||
Name: | ||||
Title: | ||||
Signature Page to Underwriting Agreement
SCHEDULE A
Total | ||||
Number of | ||||
Firm Securities | ||||
to be | ||||
Underwriter | Purchased | |||
Credit Suisse Securities (USA) LLC |
||||
UBS XX |
||||
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated |
||||
Total |
||||
Schedule to Underwriting Agreement
SCHEDULE B
1. | General Use Free Writing Prospectuses (included in the General Disclosure Package) |
“General Use Issuer Free Writing Prospectus” includes each of the following documents:
[1. •]
2. [list other documents]
2. | Other Information Included in the General Disclosure Package |
The following information is also included in the General Disclosure Package:
[1. The initial price to the public of the Offered Securities.
2. The number of Offered Securities.
3. [list other information]]
Schedule to Underwriting Agreement
SCHEDULE C
OFFICERS, DIRECTORS AND SHAREHOLDERS ENTERING LOCK-UP AGREEMENTS
1. E-House (China) Holdings Limited
2. SINA Corporation
3. Xxx Xxxx
4. Xxxxxxx Xxxx
5. Xxxx Xxxxxxx Xxxx
6. Xxxxxx Xxx
7. Xxxx Xx
8. Bin Xxxxxxxx
9. Zuyu Ding
10. Xxx Xxx
11. Xxx Xxxxx
12. Xxxxxxxx Xxx
13. Fan Bao
14. Xxxxx Xxxxx
15. Ya-Xxx Xxxxx
2. SINA Corporation
3. Xxx Xxxx
4. Xxxxxxx Xxxx
5. Xxxx Xxxxxxx Xxxx
6. Xxxxxx Xxx
7. Xxxx Xx
8. Bin Xxxxxxxx
9. Zuyu Ding
10. Xxx Xxx
11. Xxx Xxxxx
12. Xxxxxxxx Xxx
13. Fan Bao
14. Xxxxx Xxxxx
15. Ya-Xxx Xxxxx
Schedule to Underwriting Agreement
EXHIBIT C
LETTER OF PRICEWATERHOUSE COOPERS XXXXX XXXX CPAS LIMITED COMPANY
Exhibit
to Underwriting Agreement
EXHIBIT D
OPINION OF U.S. COUNSEL FOR THE COMPANY
Exhibit
to Underwriting Agreement
EXHIBIT E
OPINION OF CAYMAN ISLANDS AND BRITISH VIRGIN ISLANDS COUNSEL FOR THE COMPANY
Exhibit
to Underwriting Agreement
EXHIBIT F
OPINION OF HONG KONG COUNSEL FOR THE COMPANY
Exhibit
to Underwriting Agreement
EXHIBIT G
OPINION OF PRC COUNSEL FOR THE COMPANY
Exhibit
to Underwriting Agreement
EXHIBIT H
OPINION OF DEPOSITARY’S COUNSEL
Exhibit
to Underwriting Agreement
APPENDIX A
LIST OF GROUP ENTITIES AND OWNERSHIP STRUCTURE
Appendix to Underwriting Agreement
APPENDIX
B
COH
Entities
Appendix to Underwriting Agreement
APPENDIX
C
Existing
Leju VIE Agreements
Appendix to Underwriting Agreement