Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 90

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 90
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 amount of the exercise price as a gift, or in other methods upon King Eagle
(China)’s written consent to transfer the exercise price to King Eagle (Tianjin). The Equity Disposal Agreement is valid for a
term of 10 years or longer upon the request of King Eagle (China).

    F-26

Equity
Pledge Agreement

Pursuant
to the terms of certain Equity Pledge Agreement dated on May 15, 2021, among King Eagle (China) and the shareholders of King Eagle (Tianjin)
(the “Pledge Agreement”), the shareholders of King Eagle (Tianjin) pledged all of their equity interests in King Eagle
(Tianjin)to King Eagle (China), including the proceeds thereof, to guarantee King Eagle (Tianjin)’s performance of its obligations
under the Business Operation Agreement, the Consulting Service Agreement and Equity Disposal Agreement (each, a “Agreement”,
collectively, the “Agreements”). If King Eagle (Tianjin) or its shareholders breach its respective contractual obligations
under any Agreement, or cause to occur one of the events regards as an event of default under any Agreement, King Eagle (China), as pledgee,
will be entitled to certain rights, including the right to dispose of the pledged equity interest in King Eagle (Tianjin). During the
term of the Pledge Agreement, the pledged equity interests cannot be transferred without King Eagle (China)’s prior written consent.
The Pledge Agreements is valid until all the obligations due under the Agreements have been fulfilled.

A
VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without
additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such
as voting rights and the right to receive the expected residual returns of the entity or the obligation to absorb the expected losses
of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary
and must consolidate the VIE. King Eagle (China) is deemed to have a controlling financial interest and be the primary beneficiary of
King Eagle (Tianjin) because it has both of the following characteristics:

    (1)
    The
    power to direct the activities of King Eagle (Tianjin) that most significantly impact such entity’s economic performance, and

    (2)
    The