Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 432

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 432
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 if these regulations or their interpretations change in the future, we could be subject to severe penalties or
    be forced to relinquish our interest in those operations.

17

On
May 15, 2021, King Eagle (China) and the shareholders of King Eagle VIE entered into a series of contractual agreements for King Eagle
VIE to qualify as a variable interest entity or VIE (the “VIE Agreements”). The VIE Agreements are summarized as follows:

Consulting
Service Agreement

Pursuant
to the terms of an Exclusive Consulting Service Agreement dated May 15, 2021 between King Eagle (China) and King Eagle VIE (the “Consulting
Service Agreement”), King Eagle (China) is the exclusive consulting service provider to King Eagle VIE to provide business-related
software research and development services; design, installation, and testing services; network equipment support, upgrade, maintenance,
monitoring, and problem-solving services; employee technical training services; technology development and sublicensing services; public
relations services; market investigation, research, and consultation services; short to medium term marketing plan-making services; compliance
consultation services; marketing events and membership related activities organizing services; intellectual property permits; equipment
and rental services; and business-related management consulting services. Pursuant to the Consulting Service Agreement, the service fee
is an amount equal to the excess of King Eagle VIE’s profit before tax in the corresponding year over King Eagle VIE’s losses,
if any, in the previous year, necessary costs, expenses, taxes, and fees incurred in the corresponding year, and contributions to the
statutory provident fund. King Eagle VIE agreed not to transfer its rights and obligations under the Consulting Service Agreement to
any third party without the prior written consent of King Eagle (China). King Eagle (China) may transfer its rights and obligations under
the Consulting Service Agreement to King Eagle (China)’s affiliates without King Eagle VIE’s consent, but King Eagle (China)
must notify King Eagle VIE of such transfer. The Consulting Service Agreement is valid for a term of 10 years subject to any extension
requested by King Eagle (China) unless terminated by King Eagle (China) unilaterally prior to expiration.

The
foregoing summary of the Consulting Service Agreement does not purport to be complete and is subject to, and qualified in its entirety
by, the Consulting Service Agreement, which was filed as Exhibit 10.1 to our Form 8-K dated May