Article 1
Partnership Mode & the Equity Floor
EQUITY FLOOR
1.1 The parties operate MULAN DIAN® stores through a jointly established store company (a limited liability company): Party A is the controlling party, holding no less than fifty-one per cent (51%); Party B joins as a minority partner, sharing gains and bearing losses by shareholding.
1.2 Party A's controlling position is the precondition of the cooperation, with no exception for format, city or size of investment. This brand does not accept pure brand-licensing, brand affiliation, or capital-guaranteed cooperation.
1.3 The store company is registered, accounted for, and holds liability independently. Party A and Party B are liable to the store company each up to their own subscribed capital.