Technical assistance agreement. Dangdang Kewen is committed to using Dangdang Information as an exclusive technical service provider, including platform and technical support, maintenance and other services. Through this agreement, Dangdang derives the profits from Dangdang Kewen. The transfer pricing, which determines the level of the burden for technical services, creates a tax risk that I will discuss further in a later contribution. (v) the capital agreement between WFOE, the PRC and the national company, by which the persons participating in the PRC pledged their interests in the national company in the WFOE as a guarantee of the performance of their obligations and the obligations of the national company arising from other agreements between the three (3) parties. in the life structure; and agreements. The concept behind a life structure is that control is achieved through legal agreements and not through the holding of shares. Together, Dangdang`s information agreements are essentially aimed at providing all the economic benefits of Dangdang Kewen and the obligation to absorb all losses. Dangdang uses five agreements to achieve this.
These agreements are typical of most life structures: Article 9 of the Internal Regulation comes to the public`s attention on issues which, with respect to the merger and acquisition (“ATM”) of the domestic enterprise by foreign investors, assess whether the merger transaction falls within the scope of the national security investigation, on the basis of the material content and the actual influence of the transaction; foreign investors cannot evade national security verification by any means, including, but not limited to, order-taking, trusts, multi-level investments, leases, loans, contractual control, foreign transactions, etc. loan contracts. The founders borrowed money from Dangdang Information to capitalize Dangdang Kewen. Using Dangdang information instead of the cayman island parent company to make the loan, the agreement between two Chinese companies, is the need to do with the state management of currencies. (iii) foreign investors create foreign companies and acquire assets from domestic companies through agreements of those foreign-invested companies and exploit these assets or acquire stakes of domestic firms through those foreign-invested enterprises; and vi) the loan agreement between and between WFOE and PRC people, in which WFOE extends a loan to CPP individuals who are used for the capitalization of the national enterprise. The cash flow is as follows: SPV1 will finance the SPV2. SPV2 will make a capital injection to WFOE. WFOE will extend a loan to CPP individuals who, in turn, will create and fund the national business in the CPP. If the CPP national entity makes a profit, it will pay a dividend to CPP individuals. Cpp recipients will repay the loan to WFOE.