Common use of Domestic Entity Clause in Contracts

Domestic Entity. Each of the Founders undertakes to the Investor and agrees that (A) he will, and will ensure the other existing shareholders of the Domestic Entity will, on the Investor’s and/or the Warrant Holder’s demand, forthwith transfer an aggregate 7% of the equity interest of the Domestic Company on a pro rata basis among themselves to the Investor and subject to the exercise of the Warrant, the Warrant Holder or any Person designated by the Investor and the Warrant Holder (as the case may be) following the date hereof; and have the Control Documents revised to reflect such transfer to the satisfaction of the Investor; and (B) without prejudice to the foregoing paragraph (a), the Company will have a call option, exercisable by the Company or any of its designees to purchase, at any time after the Closing, one hundred percent (100%) of the equity interests in the Domestic Entity at the lowest price to the maximum permitted by applicable PRC law. The Founding Shareholders and the Founders agree and undertake to procure all the shareholders of the Domestic Entity to return the proceeds received from such sale back to the Company.