Document:

Exhibit 10.6

 

Exclusive Management Services and Business Cooperation Agreement

 

This Exclusive Management Services and Business Cooperation Agreement (hereinafter referred to as the “Agreement”) was signed by the following parties in Beijing of the People’s Republic of China on June 24, 2020.

 

Party A:                    Hongen Perfect Future (Tianjin) Investment Co., Ltd., a wholly foreign-owned enterprise legally established and subsisting under the laws of the PRC with a unified social credit code of ********** and a registered address of North 2-204-Gongyefuhua-5-227, No. 18 Haitai West Road, Huayuan Industrial Zone, Tianjin.

 

Party B:                     Tianjin Hongen Perfect Future Education Technology Co., Ltd., a limited liability company legally established and subsisting under the laws of the PRC with its unified social credit code of ********** and the registered address at 2B15, Building 29, No. 89 Jingjin Technology Valley Heyuandao, Wuqing District, Tianjin.

 

Party C:                     Current Shareholders of Party B, as listed in Appendix I  hereto, with their capital contribution to and ratio of capital contribution of Party B set forth in Appendix I  hereto.

 

(Party A, Party B and Party C are referred to as a “party” respectively and collectively referred to as the “parties”. “Party B’s subsidiaries” are all the principal bodies mentioned in Appendix II to this Agreement and the institutions invested and controlled by Party B (including but not limited to the companies and relevant institutions, more than 50% investment equity of which are directly or indirectly held by Party B) updated from time to time according to this Agreement.)

 

Whereas:

 

(1)             Party A is a wholly foreign-owned enterprise effectively established and lawfully subsisting under the laws of the PRC, with business scope including investment in permitted area for foreign investment company, operation of advertising business, computer software, electronic information technology, computer network technology, development, consultancy, service, transfer of data processing technology, consultancy on enterprise management (for items subject to approval in accordance with the laws, the operation of business shall be within the approved scope after approval of the relevant authorities).

 

(2)             Party B is a company with limited liability effectively established and lawfully subsisting under the laws of the PRC, mainly engaging in education software, electronic technology development, electronic products, stationery supplies, toy wholesale and retail, engaging in advertising business, internet information services, education information consulting, books, newspapers, periodicals, electronic publications, video and audio product retail and network retail and so on (hereinafter referred to as “the Main Services”).

 

(3)             Subsidiaries currently held by Party B are shown in Appendix II.

 

(4)             Party C are shareholders of Party B, and hold 100% equity of Party B as of the date hereof.

 

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(5)             Party B and Party C undertake to help materializing the compliance and implementation of the terms under this Agreement by Party B’s subsidiaries, and sign necessary relevant specific agreements or documents to realize the purposes of this Agreement under the request of Party A.

 

(6)             Party A agrees to provide Party B and Party B’s subsidiaries with exclusive education management consultancy, permission of intellectual property rights, technological support and business support by leveraging its advantages on talents, technology and information and Party B and Party B’s subsidiaries agree to accept the relevant services provided by Party A.

 

The parties have reached a consensus and the following agreement:

 

1.                  Provision of Service

 

1.1.         According to the terms and conditions of this Agreement, Party B and Party C hereby appoint Party A as the exclusive provider of technology and service for Party B and Party B’s subsidiaries during the period of this Agreement, so as to provide Party B and Party B’s subsidiaries with comprehensive education management consultancy, permission of intellectual property rights, technological support and business support. Specific contents are given in Appendix III of this Agreement. Party B and Party B’s subsidiaries are the “service recipients”.

 

Party B shall, and Party B shall guarantee to procure Part B’s subsidiaries, based on actual business needs, determine the services together with Party A or the entities designated by Party A, and such services are given in Appendix III of this Agreement. The parties understand that the services actually provided by Party A are subject to Party A’s approved business scope; and if Party B and Party B’s subsidiaries require Party A to provide services beyond Party A’s approved business scope, Party A shall have the right to designate third parties or within the maximum limit allowed by law to apply for expanding its business scope, and then provide services after the application has been approved.

 

1.2.         Party B and Party C further agree that, without the prior written consent of Party A, Party B guarantee that they and their relevant institutions (including but not limited to Part B’s subsidiaries) shall not directly or indirectly obtain services the same as or similar to the exclusive technology and services specified in this Agreement from any third party, and shall not establish any similar cooperation relations relating to the matters covered herein with any third party and shall promise that their relevant institutions shall not do so. Party B agrees that without the written consent of Party A, Party B and its subsidiaries shall not enter into any other agreements or arrangements which will cause conflict with this Agreement or may damage the rights and interests of Party A hereunder. Party B and Party C agree that Party A may designate other parties to provide Party B and Part B’s subsidiaries with the services specified in Appendix III of this Agreement.

 

1.3.         In order to ensure the normal operation of daily business of Party B and Party B’s subsidiaries, Party A may (but not necessarily), based on its own judgement and Chinese laws and regulations, provide guarantee for the performance of other business contracts and agreements signed between Party B and Party B’s subsidiaries and any third parties related to its business as the guarantor. Party B and Party C hereby unanimously agree and confirm that Party A shall first be appointed as the guarantor if it is necessary to provide any guarantee for the fulfilment of any contract or loan during the business operation of Party B and/or Party B’s subsidiaries.

 

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2.                  Price and Payment Method of Services

 

2.1.         Party A may, by referring to the specific service contents and objects and the income, number of users in the particular period of Party B and Party B’s subsidiaries, determine by itself the price and appropriate payment methods of services, and the specific calculation and payment methods of service expenses are given in Appendix III  of this Agreement.

 

2.2.         If Party A thinks that the confirmation mechanism of service prices specified in this Agreement becomes inappropriate because of some reasons and therefore shall be adjusted, Party A shall actively and honestly propose adjustment plan, so as to confirm new price standard or mechanism. If the service recipients fail to reply within seven workdays after receiving the notice of the aforesaid adjustment, it shall be deemed as having accepted the said adjustment to service price.

 

3.                  Intellectual Property Rights

 

3.1.         The intellectual property rights of all the achievements arising from performing this Agreement shall include but not limited to trademarks, copyrights, patent rights and rights to apply for patents, copyright in computer software, technological secrets, commercial secrets, etc., whether or not developed by Party A, and shall be the ownerships, rights and interests that are exclusively enjoyed by Party A. Party B, Party B’s subsidiaries and Party C shall not enjoy any other rights that are not specified in this Agreement unless with the permission of Party A, and shall support Party A or Party A’s affiliates in taking all necessary measures to obtain such intellectual property rights. For the avoidance of doubt, except for the intellectual property rights that are confirmed by Party A as necessary for normal business operation of Party B or Party B’s subsidiaries or shall be held by Party B or Party B’s subsidiaries according to relevant domestic laws and regulations, as for the intellectual property rights that have been held or applied by Party B or Party B’s subsidiaries to relevant competent authorities as of the signing date of this Agreement, the equity holders or applicants of other intellectual property rights shall, based on Party A’s requirements, transfer the said intellectual property rights to Party A or Party A’s related parties, and Party B or Party B’s subsidiaries shall sign a transfer agreement of intellectual property rights with Party A or Party A’s related parties.

 

3.2.         If development is conducted by Party A based on the intellectual property rights of Party B or Party B’s subsidiaries, Party B and Party B’s relevant subsidiary shall ensure that there are not any flaw of such intellectual property rights, otherwise Party B and Party B’s relevant subsidiaries shall bear the losses caused to Party A. If Party A needs to compensate any third person in this case, Party A shall have the right to, after such a compensation, claim for all the losses against Party B and/or relevant Party B’s subsidiaries.

 

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3.3.         The parties agree that, regardless of whether this Agreement is changed, cancelled or terminated, these terms are binding.

 

4.                  Realization of Party A’s Rights

 

Whereas the provisions of Article 1 of this Agreement and in order to clarify the rights and interests of the parties, guarantee the actual performance of management services agreement provided by Party A for Party B and Party B’s subsidiaries, the implementation of business services between Party A and Party B and Party B’s subsidiaries, and the payment by Party B and Party B’s subsidiaries for payable consideration to Party A, Party B and Party C hereby agree that, and guarantee to procure Party B to agree:

 

4.1.         Party A shall have the right to propose suggestions or requirements regarding the daily operation, financial management and staff employment of Party B and Party B’s subsidiaries, and Party B and Party B’s subsidiaries shall strictly fulfil or observe the said suggestions or requirements proposed by Party A.

 

4.2.         Party C, Party B and Party B’s subsidiaries shall, according to laws and regulations and the procedures specified in the articles of association of company, select candidates designated by Party A as the directors of Party B and Party B’s subsidiaries, and procure the said elected directors to select the chairman of the board of directors from the candidates recommended by Party A, and appoint the persons designated by Party A as all of the senior executives (including but not limited to principal, general manager, financial controller, responsible persons of respective businesses, financial management staff, financial monitoring staff and accountant) of Party B and Party B’s subsidiaries; Except with the prior written consent of Party A or with statutory causes, Party B or any of its subsidiaries shall not refuse to appoint any person recommended by Party A for whatever reason.

 

4.3.         Party C, Party B and/or Party B’s subsidiaries shall, based on Party A’s requirements, dismiss any directors and/or senior executives of Party B and Party B’s subsidiaries, and immediately select and appoint other persons designated by Party A to assume the said positions.

 

4.4.         In respect of the objective of Clause 4.3, Party C, Party B and Party B’s subsidiaries shall, according to laws, articles of association and this Agreement, take all necessary internal or external procedures to complete the abovementioned dismissal and employment procedures.

 

4.5.         Party A shall have the right to check the accounts of Party B and Party B’s subsidiaries regularly or at any time. Party B and Party B’s subsidiaries shall timely and accurately record the accounts, and shall, upon requirements of Party A, provide Party A with their accounts, audit reports, financial statements and all operation records, business contracts and financial information. During the validity period of this Agreement and on the condition of not violating applicable laws, Party B and Party B’s subsidiaries shall agree to support Party A and any third party designated by Party A in auditing (including but not limited to audit of related transactions and other audits of various types), provide relevant information and data relating to operation, business, customers, finance and staff of Party B and Party B’s subsidiaries for Party A and any third party designated by Party A and auditors appointed by Party A, and shall agree that Party A or any other related parties of Party A may disclose such information and data in order to meet the relevant requirements of securities regulatory authorities.

 

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4.6.         Party C hereby agrees to, on the date of signing this Agreement, present Party A with a Power of Attorney, the content and form of which satisfy Party A, and comprehensively, appropriately and completely perform the stipulation of such a Power of Attorney, including but not limited to, according to this Power of Attorney, unconditionally and irrevocably authorizing Party A or the persons (“trustee”, and such a trustee shall not be Party C) designated by Party A as the representative of Party C to exercise the rights of shareholders and/or directors of Party B and Party B’s subsidiaries based on the will of the trustee.

 

4.7.         Party C confirms that it has comprehensively and clearly understood the obligations of Party B and Party B’s subsidiaries under this Agreement at the time of signing this Agreement, and that it is willing to pledge the 100% equity of Party B held by it to Party A, so as to provide guarantee for the performance of all the obligations of Party B under this Agreement. The parties will sign a separate agreement on equity pledge.

 

4.8.         Party B and Party C hereby agree that, and Party B and Party C guarantee to procure Party B’s subsidiaries to agree, once Party A submits a written request, Party B and Party B’s subsidiaries and Party C will pledge all of their receivables and/or all the other assets that are lawfully owned and may be disposed of by them as the guarantee for the payment obligation of the service expenses specified in Clause 2.1 of this Agreement, in a manner then permitted by the laws. Party B and Party C hereby agree that, and Party B and Party C guarantee to procure Party B’s subsidiaries to agree, during the validity period of this Agreement, Party B and Party B’s subsidiaries maintain complete business licences necessary for operation and adequate rights and qualifications to engage in the current businesses in China.

 

4.9.         In case of liquidation or dissolution of Party B and Party B’s subsidiaries for various reasons, Party C, Party B or Party B’s subsidiaries shall, within the scope permitted by Chinese laws, appoint the persons recommended by Party A as the liquidation team, which takes charge of managing the property of Party B and Party B’s subsidiaries. Party C, Party B and Party B’s subsidiaries promise that in case of liquidation or dissolution of Party B and Party B’s subsidiaries, Party C, Party B or Party B’s subsidiaries shall deliver all the remaining property obtained from the liquidation of Party B and Party B’s subsidiaries conducted according to Chinese laws and regulations respectively to Party A or the third parties designated by Party A, no matter whether the agreement specified in this article has been implemented and within the restriction of Chinese laws.

 

4.10.  Without the prior written consent of Party A, Party B and Party B’s subsidiaries are not allowed to conduct any transactions that may substantially affect their assets, obligations, rights or operation of institutions, including but not limited to:

 

(1)             To conduct any activities beyond the normal business scope of institutions or do business not in the consistent and usual way;

 

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(2)             To lend the third parties money or assume any debts except for those incurred in the ordinary course of business;

 

(3)             To change or dismiss any directors or change any executives;

 

(4)             To sell to any third parties or obtain from any third parties, or otherwise deal with any assets or rights, including but not limited to any intellectual property rights, except that Party B and any subsidiary of Party B can prove that the sale, acquisition or disposal of relevant assets and rights are necessary for its daily business operation and the value of assets involved in a single transaction does not exceed 10% of Party B’s audited total assets of the preceding year;

 

(5)             To provide guarantee for any third parties with its assets or intellectual property rights, or provide guarantee in any other forms or set any encumbrance on the assets of institutions not because of the debts of Party B and Party B’s subsidiaries;

 

(6)             To change the articles of association of institutions or change the business scope of institutions;

 

(7)             To change the operation method, business procedures of institutions or change any major internal rules and systems of institutions;

 

(8)             To significantly adjust its business operation models, marketing strategies, operation guidelines or customer relations;

 

(9)             To distribute bonus and dividends in any form;

 

(10)      To liquidate institutions and distribute the remaining assets;

 

(11)      To transfer the rights and interests under this Agreement to any third parties;

 

(12)      To sign any other agreements or arrangements which contradict this Agreement or may damage the rights and interests of Party A under this Agreement; and

 

(13)      To conduct contracted operation, operation of lease, consolidation, division, joint venture, shareholding reform or other arrangements that change the operation method and equity structure, or deal with all or substantial assets or rights and interests of the institutions of Party B and Party B’s subsidiaries in the form of transfer, or assignment or capital contribution at a certain price or other ways.

 

Moreover, Party B shall, and Party C shall, procure Party B and Party B’s subsidiaries to immediately inform Party A of any situations that will or may substantially and adversely affect the businesses and operation of Party B and Party B’s subsidiaries, and shall use its best endeavours to avoid the occurrence of such situations and/or the expansion of losses.

 

4.11.  Party B hereby grants Party A an irrevocable and exclusive purchase right, pursuant to which Party A may, at its own option, purchase any partial or entire assets and businesses from Party B at the minimum price allowed by the Chinese laws within the scope permitted by the Chinese laws and regulations. The two parties will then separately sign asset or business transfer contract to specify the terms and conditions of such asset transfer.

 

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5.                  Validity Period and Termination Right

 

5.1.         This Agreement was signed and took effect on the date set out in the first page.

 

5.2.         This Agreement shall be effective in the operation period of Party A, Party B and Party B’s subsidiaries.

 

5.3.         The parties agree to grant Party A an option to terminate this Agreement at any time. Party A shall have the right to terminate this Agreement at any time during the performance of this Agreement by serving a written notice.

 

5.4.         Party B and/or Party C are not allowed to terminate this Agreement under any situations without the prior written consent of Party A.

 

6.                  Representations and Warranties

 

6.1.         Party A makes the following representations and warranties for Party B and Party C:

 

(1)             Party A is a wholly foreign-owned enterprise legal person lawfully established and effectively subsisting under the laws of the PRC, and has the capacity of independently undertaking civil liabilities.

 

(2)             Party A has the full corporate powers necessary for signing and delivering this Agreement and fulfilling its obligations under this Agreement. After the signing, this Agreement shall constitute statutory, effective and binding obligations for Party A and may be enforceable based on its terms.

 

(3)             The signing of this Agreement and Party A’s fulfilment of the obligations under this Agreement will not contradict, breach or violate (i) any requirements of Party A’s any business licences or articles of association; (ii) any laws, rules, ordinances, authorizations or approvals of any government agencies or departments that are applicable to Party A; and (iii) any requirements of the contracts and agreements to which Party A is the signing party or main body.

 

6.2.         Party B makes the following representations and warranties to Party A:

 

(1)             Party B and Party B’s subsidiaries are companies with limited liability or non-governmental non-profit units (legal person) lawfully established and effectively subsisting under the laws of the PRC, and have the capacity of independently undertaking civil liabilities with its registered capital.

 

(2)             Party B has the full authority necessary for signing and delivering this Agreement and completely fulfilling their obligations under this Agreement. After the signing, this Agreement shall constitute statutory, effective and binding obligations for Party B and may be enforceable based on its terms.

 

(3)             The signing of this Agreement and the fulfilment by Party B of the obligations under this Agreement will not contradict, breach or violate (i) any requirements of business licences or articles of association of Party B and Party B’s subsidiaries; (ii) any laws, rules, ordinances, authorizations or approvals of any government agencies or departments that are applicable to Party B and Party B’s subsidiaries; and (iii) any requirements of the contracts and agreements to which Party B and Party B’s subsidiaries or any of their related companies are the signing parties or main bodies.

 

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(4)             Party B and Party B’s subsidiaries will, based on Party A’s requirements, provide Party A with relevant information and document; assign special staff to communicate with Party A and coordinate the work, and actively support Party A’s on-site investigation and data collection at Party B and Party B’s subsidiaries.

 

(5)             If necessary, Party B and Party B’s subsidiaries shall provide necessary working facilities and conditions for Party A’s professionals, and bear the corresponding expenditures and expenses incurred during the provision of management services by the said professionals at Party B and Party B’s subsidiaries;

 

(6)             To develop and provide the Main Services effectively, prudently and lawfully, maintain and timely update all the licences and authorizations necessary for the provision of the Main Services by Party B and Party B’s subsidiaries under this Agreement, so as to maintain the validity and full legal force of such licences and authorizations; and establish and maintain an independent recording unit for the Main Services;

 

(7)             To provide Party A with any technological information or other data that Party A thinks are necessary for fulfilling the obligations under this Agreement, and allow Party A to enter the relevant venues and facilities that Party A thinks are necessary for providing the services under this Agreement;

 

(8)             Party B and Party B’s subsidiaries will, based on relevant Chinese laws and regulations, conduct business operation and handle all the necessary formalities relating to the business operation, and timely provide Party A with the copies of the aforesaid licences;

 

(9)             Party B and Party B’s subsidiaries have all the permits, licences, authorizations, approvals and facilities necessary for providing the Main Services during the validity period of this Agreement, and Party B and Party B’s subsidiaries guarantee that the aforesaid permits, licences, authorizations and approvals will continue to have legal force and legally valid during the entire validity period of this Agreement.

 

(10)      To pay service expenses to Party A on time.

 

7.                  Confidentiality

 

7.1.         All the terms of this Agreement and this Agreement itself are both confidential, and the parties shall not disclose them to any third party, except for the disclosure to senior staff, directors, employees, agents and professional consultants that are related to this project and undertake the confidentiality obligation to the said parties or their related parties; with the exception of the disclosure of information or content of this document to government, public or shareholders and the filing of this document at relevant institutions based on the requirements of laws or relevant securities trading institutions.

 

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7.2.         This article shall still have legal force no matter whether this Agreement has been altered, cancelled or terminated.

 

8.                  Liabilities for Default

 

8.1.         Where a party fails to fulfil any of its obligations under this Agreement or any representations or guarantees of such party under this Agreement are substantially untrue or inaccurate, such Party shall be in breach of this Agreement and shall be liable for compensation of all losses of other parties or pay liquidated damages according to the agreement separately signed by the relevant parties.

 

8.2.         Where Party B is deemed as having breached this Agreement according to Clause 8.1, Party B shall fully compensate Party A for any losses, damages or liabilities (including the losses and expenses arising from any lawsuit, claim for compensation or other requirements) that Party A incur or assume because of fulfilling the obligations under this Agreement or providing the services specified in this Agreement.

 

8.3.         Regardless of whether this Agreement is changed, cancelled or terminated, these terms are legally binding.

 

9.                  Force Majeure

 

A force majeure event means any event unforeseen by any party at the time of signing this Agreement that cannot be avoided, controlled and overcome (including but not limited to earthquake, typhoon, flood, fire, strike, war or riot, etc.).

 

In view of the fact that the force majeure event affects the performance of this Agreement, in the event of force majeure, the party shall forthwith (i) notify the remaining parties in the form of telegraph, facsimile or other electronic means and submit the written evidence of force majeure within fifteen (15) working days; (ii) take all reasonable and possible measures to eliminate or mitigate the effects of force majeure event and to resume the fulfillment of its obligations upon the elimination or mitigation of the effects of force majeure event.

 

10.           Transfer of Agreement and Changes to Parties of Agreement

 

10.1.           Without the prior written consent of Party A, none of Party B and Party C shall have the right to transfer any of its rights and obligations under this Agreement to any third party, except for the situation that Party A directly or indirectly obtains the equity of Party B based on the Exclusive Call Option Agreement signed by Party A, Party B and Party C on June 24, 2020 (including amendments made by the parties from time to time).

 

10.2.           Party B hereby agrees that Party A may transfer its rights and obligations under this Agreement to third parties, and Party A only needs to issue a written notice to Party B at the time of such transfer, without obtaining Party B’s consent of the said transfer.

 

10.3.           Addition of Party B’s subsidiaries. At any time after the Effective Date, if any Affiliate of Party B is added, such added Affiliate of Party B shall be automatically deemed to become one of Party B’s Affiliates hereunder. The other parties of this Agreement hereby agree with and completely accept the aforesaid arrangement.

 

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10.4.           The rights and obligations under this Agreement shall be legally binding on the transferees and successors (no matter whether the transfer of such rights and obligations are caused by acquisition, reorganization, succession, transfer or other reasons) of rights and obligations of the parties of this Agreement.

 

10.5.           If Party C no longer holds any shares of Party B, it shall be deemed that Party C is no longer either party of this Agreement. In case that any third party becomes a shareholder of Party B, Party B and Party C shall try its best to include the said third party as one of Party C of this Agreement as soon as possible through signing appropriate legal documents.

 

11.           Supplementary Provisions

 

11.1.  This Agreement shall be governed by the laws of the People’s Republic of China. Any dispute that may arise during the performance of this Agreement shall be settled through amicable negotiations by all parties involved. Where the negotiation fails, either party may submit the dispute to China International Economic and Trade Arbitration Commission for arbitration in accordance with the prevailing arbitration rules of such arbitration institution. The place of arbitration is Beijing, the arbitration language is Chinese, the arbitral award is final and binding on all parties. Except for the part that is being submitted to arbitration, the rest of this Agreement shall remain in force. The validity of this Article is not subject to the impact from the change, cancellation or termination of this Agreement.

 

11.2.  Upon signing this Agreement, it shall supersede any prior undertakings, memorandums, agreements or any other documents previously made in respect of the subject matter of this Agreement.

 

11.3.  All parties agree that this Agreement shall be implemented to the extent permitted by law. Where any of the terms of this Agreement or any part of a term is deemed illegal, invalid or unenforceable by any competent authority or court have jurisdiction, such unlawful, invalid or unenforceable terms shall not be prejudice to any other terms of this Agreement or other parts of such terms. Other terms or other parts of such terms shall remain in full force and each party shall use its best endeavors to amend such illegal, invalid or unenforceable terms for the purpose of achieving the original terms.

 

11.4.  The appendixes shall be an inalienable part of this Agreement and shall have the same legal effect as other parts of this Agreement.

 

11.5.  This Agreement is prepared in Chinese and shall be executed in duplicate. Each copy has the same legal effect.

 

[The remainder of this page is intentionally left blank]

 

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IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party A: Hongen Perfect Future (Tianjin) Investment Co., Ltd. (Seal)

 

[Company seal is affixed]

 

Authorized representative:

 

	
/s/ Hanfeng Chi
    	
 
    

 

 

Party B: Tianjin Hongen Perfect Future Education Technology Co., Ltd. (Seal)

 

[Company seal is affixed]

 

Authorized representative:

 

	
/s/ Peng Dai
    	
 
    

 

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IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party C: Hanfeng Chi

 

	
/s/ Hanfeng Chi
    	
 
    

 

12

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party C: Sanming Juyichang Enterprise Management Service Partnership (Limited Partnership) (Seal)

 

[Company seal is affixed]

 

Authorized representative:

 

	
/s/ Zhang Xiaoyi
    	
 
    

 

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IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party C: Tian Liang

 

	
/s/ Tian Liang
    	
 
    

 

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IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party C: Sanming Jushengyi Enterprise Management Service Partnership (Limited Partnership) (Seal)

 

[Company seal is affixed]

 

Authorized representative:

 

	
/s/ Feng Zhiming
    	
 
    

 

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IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party C: Sanming Kangqian Information Technology Service Co., Ltd. (Seal)

 

[Company seal is affixed]

 

Authorized representative:

 

	
/s/ Hanfeng Chi
    	
 
    

 

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Appendix I Current Shareholders of Party B

 

	
Name of Shareholder
    	
 
    	
Identify Number/unified
   social credit code
    	
 
    	
Capital
   contribution
   (‘0,000 RMB)
    	
 
    	
Ratio of capital
   contribution
    	
 
    
	
Hanfeng Chi
    	
 
    	
***
    	
 
    	
900
    	
 
    	
63.61
    	
%
    
	
Sanming Juyichang Enterprise Management Service   Partnership (Limited Partnership)
    	
 
    	
***
    	
 
    	
250
    	
 
    	
17.67
    	
%
    
	
Tian Liang
    	
 
    	
***
    	
 
    	
100
    	
 
    	
7.07
    	
%
    
	
Sanming Jushengyi Enterprise Management Service   Partnership (Limited Partnership)
    	
 
    	
***
    	
 
    	
94.086
    	
 
    	
6.65
    	
%
    
	
Sanming Kangqian Information Technology Service   Co., Ltd.
    	
 
    	
***
    	
 
    	
70.7414
    	
 
    	
5.00
    	
%
    
	
Total
    	
 
    	
/
    	
 
    	
1,414.8274
    	
 
    	
100
    	
%
    

 

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Appendix II List of Party B’s subsidiaries

 

	
 
    	
 
    	
Name
    
	
1.
    	
 
    	
Beijing Jinhongen Education Technology Co., Ltd
    
	
2.
    	
 
    	
Beijing Hongen Perfect Future Education Technology   Co., Ltd.
    
	
3.
    	
 
    	
Tianjin Hongen Perfect Technology Development Co., Ltd.
    

 

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Appendix III Service Content, Calculation and Payment Methods of Service Expenses

 

(I) List of service content

 

1.                  To provide opinions and suggestions on asset, business operation and negotiation, signing and fulfilment of significant contracts;

2.                  To provide services relating to short-term and medium-term market development and market plan;

3.                  To provide industrial market investigation, study and consulting service;

4.                  To provide opinions and suggestions on disposing of creditor’s rights and debts;

5.                  To provide opinions and suggestions on M&A;

6.                  To provide human resources management service and pre-job training, on-site skill training;

7.                  To provide the authorized use of various intellectual property rights like software, trademark, domain name and technological secret;

8.                  To provide the R&D of educational software, educational courseware, on-line lessons, and applications and teaching supporting services;

9.                  To provide services on technological development, technological transfer and technological consultancy;

10.           To provide the management and maintenance of management and service systems like human resources information management system, payment management system and internal information management system;

11.           To provide development and upgrading of website, and daily maintenance, monitoring, debugging and troubleshooting of computer network equipment;

12.           To provide technological consultancy and answer to the technological questions on network equipment, technological product and software proposed by the service recipients;

13.           To provide public relations service;

14.           To provide selling service for self-made products;

15.           To provide daily maintenance for office equipment;

16.           To seek and select appropriate service provider as the third party for the service recipients;

17.           To provide daily management of service provider as the third party for the service recipients;

18.           To provide the service recipients with consultancy service regarding overseas market; and/or

19.           To provide other services that are negotiated and confirmed from time to time by Party A and the service recipients based on the business needs of the service recipients and Party A’s capability of providing services.

 

(II) Calculation and Payment Methods of Service Expenses

 

1.                  The amount of service expenses are the balance of the total income of the service recipients minus cost, taxes and other expenses that are reserved or withdrawn according to laws and regulations. The specific amount shall be determined by Party A by referring to the following factors:

 

(1)             Technological difficulties and complexity of services;

(2)             The resources input by Party A and the time spent by Party A’s staff for specific services;

 

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(3)             Specific content and commercial value of services;

(4)             Market reference price of services of the same category;

(5)             Operating conditions of the service recipients.

 

2.                  Party A shall summarize the service expenses on time (the specific period shall be determined by Party A, and the service recipients shall agree with such decision) and notify the service recipients by regularly sending the account of service expenses to them. The service recipients shall remit the said service expenses to the bank account designated by Party A within 10 work days after receiving the said notice. The service recipients shall fax or mail the copy of remittance voucher to Party A within 10 workdays after the remittance.

 

3.                  Besides the service expenses, the service recipients shall bear all reasonable expenses, advance payment and expenses actually paid (“expenditures”) in any form that are ascribable to Party A, arising from, or relating to Party A’s fulfilment or provision of services, and shall compensate Party A in respect of these expenses.

 

4.                  The service recipients shall pay the service expenses and the expenditures to be made up to Party A according to this Agreement and the supplementary agreement signed from time to time. Party A shall timely issue the invoices of corresponding service expenses and all the expenditures arising during the relevant period to the service recipients. All the payments shall be remitted to the bank account designated by Party A via remittance or other methods agreed by both parties. Both parties agree that Party A may also inform the service recipients of changing the said payment instructions from time to time.

 

20Exhibit 10.7

 

Exclusive Call Option Agreement

 

This Exclusive Call Option Agreement (hereinafter referred to as the “Agreement”) was signed by the following parties on 24th day of June, 2020 in Beijing of the People’s Republic of China:

 

Party A:                    Hongen Perfect Future (Tianjin) Investment Co., Ltd., a wholly foreign-owned enterprise legally established and subsisting under the laws of the PRC with a unified social credit code of ********** and a registered address of North 2-204-Gongyefuhua-5-227, No. 18 Haitai West Road, Huayuan Industrial Zone, Tianjin.

 

Party B:                     Current Shareholders of Party C, as listed in Appendix I hereto, with their capital contribution to and ratio of capital contribution of Party C set forth in Appendix I hereto.

 

Party C:                     Tianjin Hongen Perfect Future Education Technology Co., Ltd., a limited liability company legally established and subsisting under the laws of the PRC with its unified social credit code of ********** and the registered address at 2B15, Building 29, No. 89 Jingjin Technology Valley Heyuandao, Wuqing District, Tianjin.

 

(Party A, Party B and Party C are individually referred to as a “party”, collectively referred to as the “parties”.)

 

Whereas:

 

Party B holds a total of 100% equity of Party C. All the above parties, upon amicable negotiations, hope to reach this Agreement in respect of the purchase by Party A or the third party designated by Party A of Party C’s equity held by Party B for joint compliance.

 

The parties have reached a consensus and the following agreement:

 

1.                   Exclusive call option

 

1.1            From the date of signing this Agreement, Party A shall be entitled at any time under the following circumstances to request Party B (subject to the specific requirements of Party A) to transfer all or part of 100% equity of Party C held by Party B (hereinafter referred to as the “subject equity”) in accordance with the consideration as stipulated in Article 3 of this Agreement. Party B shall transfer the subject equity to Party A or a third party designated by Party A at Party A’s request and complete the corresponding change of industrial and commercial registration:

 

(1)              Where the PRC laws and regulations permit Party A or a third party designated by Party A to hold all or part of the subject equity; or

 

(2)              Any other circumstances that Party A deems appropriate or necessary as far as legally permissible under the PRC laws and regulations.

 

Party A’s call options under this Agreement are exclusive, unconditional and irrevocable.

 

1.2            All parties agree to be bound by the terms and conditions of this Agreement and Party A shall be entitled, at its own discretion, to exercise all or part of the exclusive call options and acquire all or part of the subject equity without violating the then PRC laws. All parties further agree that Party A shall not be subject to any restriction on the time, method, quantity and frequency of exercising the exclusive call options as stipulated in this Agreement.

 

1

 

1.3            Subject to the terms and conditions of this Agreement, all parties agree that Party A may designate any third party to exercise its exclusive call option to purchase all or part of the subject equity without violating the then PRC laws. Unless expressly prohibited by PRC laws, Party B shall not refuse to transfer all or part of the subject equity to the designated third party.

 

1.4            Party B shall not transfer the subject equity to any third party without the prior written consent of Party A before transferring all the subject equity to Party A or a third party designated by Party A in accordance with the provisions of this Agreement, i.e. before Party B no longer holds any equity in Party C. Except for the Equity Pledge Agreement separately signed by Party A and Party B, Party B shall not pledge the subject equity to any third party or impose any encumbrance on the subject equity.

 

1.5            Party B agrees that before transferring the subject equity to Party A by Party B, where Party B obtains dividends, bonuses or any assets distributed from Party C, subject to the compliance with the relevant PRC laws and regulations, upon payment of the taxes as required by the relevant laws and regulations, Party B, as the shareholder of Party C, shall deliver such dividends, bonuses or any assets at no charge to Party A or a third party designated by Party A as soon as possible not later than three days from the date of receiving such distributed proceeds.

 

2.                   Procedures

 

2.1            Where Party A decides to exercise the exclusive call option pursuant to the provisions of Article 1.1 above, Party A shall issue a written notice (refer to the format as shown in Appendix IV to this Agreement) to Party B and state in the notice the proportion or quantity of the subject equity to be transferred, and the name and identity of the transferee. Party B and Party C shall provide all the necessary information and documents for the transfer of equity interests within seven days from the date of the notification by Party A, including but not limited to the “Equity Transfer Contract” and “Letter of Consent” signed in accordance with the format stipulated in Appendices II and III to this Agreement.

 

2.2            Except the notice as set forth in Article 2.1 of this Agreement, Party A shall have no other conditions or procedures precedent or incidental to the exercise of the option right to purchase the subject equity.

 

2.3            Party B shall instruct Party C to convene a shareholders’ meeting in time. At this meeting, a resolution to approve the transfer of the subject equity to Party A and / or the appointee by Party B shall be passed.

 

2.4            Party B shall provide Party C with necessary and prompt coordination to assist Party C in completing the examination and approval formalities with the examination and approval authorities (if required by law) in accordance with the applicable PRC laws and completing the equity transfer formalities with the administration for industry and commerce.

 

2.5            The date on which the exercise of exclusive call option is completed is the date on which all transfer formalities of the entire 100% equity in Party C has been completed in accordance with this Agreement.

 

2

 

3.                   Transfer price

 

3.1            All parties confirm that, without violating the PRC laws and regulations, the subject equity shall be transferred at no charge or transferred at the lowest price permitted by the PRC laws and regulations. Where the subject equity is to be transferred by installments or in stages, the amount of the corresponding transfer price shall be determined based on the specific transfer time and the proportion of subject equity to be transferred.

 

3.2            Where the subject equity is not transferred by way of free transfer, Party B agrees that, when Party A or a third party designated by Party A exercises its rights, the entire exercise price received thereof by Party B shall be given as a gift at no charge to Party C or given as a gift in full amount to Party A or a third party designated by Party A at Party A’s request.

 

3.3            The taxes and expenses incurred due to the transfer of the subject equity (including the gift of the price) shall be borne by each party respectively pursuant to the law. Agreement otherwise made between the parties shall be complied with.

 

4.                   Representation, guarantee and undertaking

 

4.1            Each party hereby represents and assures to the other party as follows:

 

(1)              The party has all the necessary rights, powers and authorization to sign this Agreement and fulfil all the obligations and responsibilities under this Agreement;

 

(2)              The Party has passed all necessary internal procedures for signing, delivering and performing this Agreement and has obtained all necessary internal and external authorizations and approvals;

 

(3)              This Agreement and each of the Equity Transfer Contracts for which the party is one of the parties, once signed, constitute or will constitute a legal, valid and binding obligation and be enforceable in accordance with its terms;

 

(4)              Signing and performance of this Agreement shall not contravene, be in breach of or contrary to (i) any of the business licences of each party or any of the provisions of its articles of association, (ii) any laws, rules, regulations, authorizations or approvals of any government agencies or departments applicable to each party, or (iii) any of the provisions of the contracts and agreements in which each party is a signatory or principal body;

 

(5)              Party C does not have any outstanding debts except for debts incurred in its normal course of business, and debts which has been disclosed to Party A and agreed in writing by Party A;

 

(6)              Party C complies with all laws and regulations applicable to the acquisition of assets; and

 

(7)              No litigation, arbitration or administrative proceedings relating to the subject equity, Party C’s assets or Party C is pending or threatened.

 

3

 

4.2            Party B and Party C severally and jointly make further representations, guarantees and undertakings to Party A as follows:

 

(1)              On the effective date of this Agreement, Party B is a Chinese national or an entity established and validly subsisting under the PRC laws, which legally owns the entire equity of Party C and has full and effective disposition rights over such equity. Party C’s registered capital has been fully paid up. Except for the pledges as stipulated in the “Equity Pledge Agreement” signed by the parties and other rights agreed in writing by Party A, Party B has no mortgage, pledge, guarantee or other third party rights in the equity of Party C owned by Party B, and shall not be liable to third parties for recourse; and no third party shall be entitled to demand the allotment, issue, sale, transfer or conversion of any Party C’s equity under any option, conversion option, preemptive right or other agreement in such party’s favor;

 

(2)              During the validity period of this Agreement, except for the pledges set forth in the “Equity Pledge Agreement” signed by all parties or with the prior written consent of Party A, Party B shall not transfer any equity of Party C to any third party or grant any options, conversion rights, pre-emptive rights to any third party or sign other agreements with third parties to allot, issue, sell, transfer or convert any of Party C’s equity or to set up any collateral, pledge or other form of guarantee or other third party rights and interests to such third parties, and to ensure that Party B shall not be liable to third parties for recourse;

 

(3)              Without the prior written consent of Party A, other party / parties shall not supplement, change or amend Party C’s Articles of Association in any form, increase or decrease its / their registered capital, or otherwise change its / their registered capital structure, unless otherwise stipulated in other agreements signed by all parties or except for amendments to be made as required by laws and regulations;

 

(4)              Without the prior written consent of Party A, Party C shall, and Party B shall cause Party C not to, enter into any Major Contract (the “Major Contracts” referred to herein shall mean contracts with contract value greater than or equal to 10% of Party C’s audited total assets of the preceding year) or change the business scope of Party C, except for the contracts entered into in the ordinary course of business and the contracts entered into between Party C and Party A’s direct or indirect overseas parent company or the subsidiaries directly or indirectly controlled by Party A’s direct or indirect overseas parent company;

 

(5)              Subject to the relevant PRC laws and regulations, Party C shall, and Party B shall cause Party C not to, extend the operating period of Party C in accordance with the permitted period of operation of Party A, so as to make it equal to Party A’s operating period or set and adjust the operating period of Party C at Party A’s request in accordance with the requirements of PRC laws;

 

(6)              Maintain the existence of Party C, obtain and maintain all the government permits and licences required of Party C to perform its business in accordance with sound financial and commercial standards and practices, and conduct its business and deal with its business matters in a prudent and effective manner;

 

(7)              During the validity period of this Agreement, Party B and Party C will use their best efforts to maintain and increase the value of Party C’s assets. Without the prior written consent of Party A, Party B and Party C shall not terminate any Major Contracts to which Party C is a party or shall not enter into any agreement that would affect the assets and financial condition of Party C by 10% or more of its audited total assets of the preceding year.

 

4

 

(8)              Without the prior written consent of Party A, no debts shall be incurred, inherited, guaranteed or permitted by Party C, except for those payables incurred in the ordinary or usual course of business but not incurred by way of borrowing;

 

(9)              Party C shall not merge with any entity or acquire or make foreign investments in any entity without the prior written consent of Party A;

 

(10)       Party B and Party C shall promptly notify Party A of all occurrences or possible occurrences of any litigation, arbitration, administrative investigation or conduct which may substantially affect Party C’s assets, business or income;

 

(11)       Without the prior written consent of Party A, Party C shall not distribute dividend to shareholders in any form;

 

(12)       From the date of signing this Agreement, without the prior written consent of Party A, the party / parties shall not sell, transfer, license or otherwise dispose of any of Party C’s assets at any time or allow any encumbrance of any assets, except that Party C can prove that the disposal of the relevant assets or the encumbrances of the assets are treated as necessary for their daily business operations and the value of the assets involved in a single transaction does not exceed 10% of Party C’s audited total asset of the preceding year; and

 

(13)       Unless required by the PRC laws, Party C shall not be dissolved or liquidated without the written consent of Party A. If Party C is liquidated or dissolved within the validity period of this Agreement, Party B and Party C shall appoint Party A’s nominees to form a liquidation team to manage Party C’s property within the scope permitted by PRC laws and regulations. Party B confirms that when Party C is liquidated or dissolved, Party B agrees to deliver all the remaining property obtained from liquidation of Party C in accordance with the PRC laws and regulations to Party A or a third party designated by Party A, regardless of whether the above-mentioned agreement of this Article is implemented or not.

 

5.                   Applicable law and dispute resolution

 

5.1            Applicable law

 

The laws of the People’s Republic of China shall apply to the signing, validity, interpretation, performance, amendment and termination of this Agreement and the resolution of disputes under this Agreement.

 

5.2            Method of dispute resolution

 

Any dispute that may arise during the performance of this Agreement shall be settled through amicable negotiations by all parties involved. Where the negotiation fails, either party may submit the dispute to China International Economic and Trade Arbitration Commission for arbitration in accordance with the prevailing arbitration rules of such arbitration institution. The place of arbitration is Beijing, the arbitration language is Chinese, and the arbitral award is final and binding on all parties.

 

Except for the part that is being submitted to arbitration, the rest of this Agreement shall remain in force. The validity of this Article is not subject to the impact from the change, cancellation or termination of this Agreement.

 

5

 

6.                   Liability for default

 

6.1            Where a party fails to fulfil any of its obligations under this Agreement or any representations or guarantees of such party under this Agreement are substantially untrue or inaccurate, such Party shall be in breach of this Agreement and shall be liable for compensation of all losses of other parties.

 

6.2            Regardless of whether this Agreement is changed, cancelled or terminated, these terms are legally binding.

 

7.                   Termination

 

7.1            This Agreement shall enter into force on the date of signing by all parties and shall not be terminated until Party A or the third party designated by it exercises the option pursuant to the Agreement and acquires the entire 100% equity in Party C, or until 30 days after the date Party A issues a written notice to the other parties regarding the cancellation of the Agreement. Subject to the laws and regulations, when the Agreement is cancelled, Party B shall repay in full the transfer price (if any) paid by Party A or the third party designated by it.

 

7.2            Unless otherwise provided by laws, neither Party B nor Party C shall have the right to terminate or rescind this Agreement in any case.

 

8.                   Notification

 

8.1            All notices and other communications required or permitted to be made pursuant to this Agreement shall be sent either by hand or by postage prepaid registered mail, courier service or facsimile to the following address of such party. An acknowledgement receipt shall be sent for each notice via email. The date on which such notices are deemed to be validly served shall be determined as follows:

 

8.1.1         Notices sent by hand delivery, courier service or postage prepaid registered mail shall be deemed to be validly served on the day of delivery or rejection at the specified recipient address of the notice.

 

8.1.2         Notices, if sent by facsimile, shall be deemed to be validly served on the day of successful transmission (as proved by the automatically generated transmission confirmation).

 

8.2            For the purpose of notification, the addresses of all parties are as follows:

 

Party A/Party C:

Address: 2nd /3rd Floor, K2, North America International Business Park, No. 108 Beiyuan Road, Chaoyang District, Beijing

Attn: Peng Dai (CC: Emily Yuan LUO)

Email: *** (CC: ***)

 

Party B:

Sanming Juyichang Enterprise Management Service Partnership (Limited Partnership)

Address: 2nd /3rd Floor, K2, North America International Business Park, No. 108 Beiyuan Road, Chaoyang District, Beijing

Attn: Zhang Xiaoyi

Email: ***

 

6

 

Sanming Jushengyi Enterprise Management Service Partnership (Limited Partnership)

Address: 2nd /3rd Floor, K2, North America International Business Park, No. 108 Beiyuan Road, Chaoyang District, Beijing

Attn: Feng Zhiming

Email: ***

 

Sanming Kangqian Information Technology Service Co., Ltd.

Address: 2nd /3rd Floor, K2, North America International Business Park, No. 108 Beiyuan Road, Chaoyang District, Beijing

Attn: Hanfeng Chi

Email: ***

 

Hanfeng Chi:

Address: 2nd /3rd Floor, K2, North America International Business Park, No. 108 Beiyuan Road, Chaoyang District, Beijing

Attn: Hanfeng Chi

Email: ***

 

Tian Liang:

Address: 2nd /3rd Floor, K2, North America International Business Park, No. 108 Beiyuan Road, Chaoyang District, Beijing

Attn: Tian Liang

Email: ***

 

8.3            Any party may change the recipient address of its notice at any time by giving notice to other parties in accordance with the provisions of this Article.

 

7

 

9.                   Confidentiality obligations

 

All parties confirm that any oral or written information exchanged by them for the purposes of this Agreement is confidential. Each party shall keep all such information confidential and shall not disclose any relevant information to any third party without the prior written consent of the other parties, except where: (a) the public is aware of or will be aware of such information (But this is not due to public disclosure by one of the parties receiving the information); (b) information required to be disclosed by applicable laws or the rules or provisions of any stock exchange; or (c) information required to be disclosed by either party to its legal adviser or financial adviser as to the transactions stipulated under this Agreement and the legal adviser or financial adviser is also subject to the confidentiality obligations similar to the obligations set forth in this Article. The disclosure of any confidential information by a staff member or agency employed by either party shall be deemed to be such party’s disclosure of such confidential information and such party shall be legally liable for any violation of this Agreement. This Article shall remain in force irrespective of whether this Agreement is terminated for any reason.

 

10.            Further assurance

 

All parties agree to promptly sign documents necessary or conducive to them for the purpose of implementation of various provisions and purposes of this Agreement and take further action that is necessary or conducive to them for the purpose of implementation of various provisions and purposes of this Agreement.

 

11.            Others

 

11.1     Title

 

The title of this Agreement is for readability only and shall not be used to interpret, explain or otherwise affect the meaning of the provisions of this Agreement.

 

11.2     Language

 

This Agreement is prepared in Chinese in duplicate. Each copy has the same legal effect.

 

11.3     Divisibility

 

In the event that one or more of the provisions of this Agreement is held to be invalid, illegal or unenforceable in any respect under any law or regulation, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or compromised in any respect. All parties shall, through bona fide negotiations, seek to replace such invalid, illegal or unenforceable provisions with valid provisions permitted by laws and within the maximum extent of expectations of all parties, and the economic effect resulting from such valid provisions shall be similar to the economic effect resulting from such invalid, illegal or unenforceable provisions as much as possible.

 

11.4     Successor

 

This Agreement shall be binding and conducive to the respective successors of the parties and to the transferee(s) permitted by such parties.

 

11.5     Force majeure

 

A force majeure event means any event unforeseen by any party at the time of signing this Agreement that cannot be avoided, controlled and overcome (including but not limited to earthquake, typhoon, flood, fire, strike, war or riot, etc.).

 

In view of the fact that the force majeure event affects the performance of this Agreement, in the event of force majeure, the party shall forthwith (i) notify the remaining parties in the form of telegraph, facsimile or other electronic means and submit the written evidence of force majeure within fifteen (15) working days; (ii) take all reasonable and possible measures to eliminate or mitigate the effects of force majeure event and to resume the fulfillment of its obligations upon the elimination or mitigation of the effects of force majeure event.

 

8

 

11.6     Remaining in force

 

Any obligations arising from this Agreement or expired prior to the expiry or early termination of this Agreement shall remain in force upon expiry or early termination of this Agreement.

 

11.7     Complete contract

 

Except for written amendments, supplements or changes made upon the signing of this Agreement, this Agreement, once signed, constitutes the complete agreement reached between the parties to this Agreement in respect of the transactions under this Agreement and shall supersede any and all oral or written undertakings, memorandums, agreements or any other documents previously made in respect of the subject matter of this Agreement.

 

(The remainder of this page is intentionally left blank)

 

9

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party A: Hongen Perfect Future (Tianjin) Investment Co., Ltd. (Seal)

 

[Company seal is affixed]

 

Authorized representative:

 

	
/s/ Hanfeng Chi
    	
 
    

 

10

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party B: Hanfeng Chi

 

	
/s/ Hanfeng Chi
    	
 
    

 

11

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party B: Sanming Juyichang Enterprise Management Service Partnership (Limited Partnership) (Seal)

 

[Company seal is affixed]

 

Authorized representative:

 

	
/s/ Zhang Xiaoyi
    	
 
    

 

12

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party B: Tian Liang

 

	
/s/ Tian Liang
    	
 
    

 

13

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party B: Sanming Jushengyi Enterprise Management Service Partnership (Limited Partnership) (Seal)

 

[Company seal is affixed]

 

Authorized representative:

 

	
/s/ Feng Zhiming
    	
 
    

 

14

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party B: Sanming Kangqian Information Technology Service Co., Ltd. (Seal)

 

[Company seal is affixed]

 

Authorized representative:

 

	
/s/ Hanfeng Chi
    	
 
    

 

15

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties or their authorized representative hereto as of the date first above written.

 

Party C: Tianjin Hongen Perfect Future Education Technology Co., Ltd. (Seal)

 

[Company seal is affixed]

 

Authorized representative:

 

	
/s/ Peng Dai
    	
 
    

 

16

 

Appendix I

 

Current Shareholders of Party C

 

	
Name of Shareholder
    	
 
    	
Identify Number/unified
   social credit code
    	
 
    	
Capital
   contribution (‘0,000
   RMB)
    	
 
    	
Ratio of capital
   contribution
    	
 
    
	
Hanfeng Chi
    	
 
    	
***
    	
 
    	
900
    	
 
    	
63.61
    	
%
    
	
Sanming Juyichang Enterprise Management Service   Partnership (Limited Partnership)
    	
 
    	
***
    	
 
    	
250
    	
 
    	
17.67
    	
%
    
	
Tian Liang
    	
 
    	
***
    	
 
    	
100
    	
 
    	
7.07
    	
%
    
	
Sanming Jushengyi Enterprise Management Service   Partnership (Limited Partnership)
    	
 
    	
***
    	
 
    	
94.086
    	
 
    	
6.65
    	
%
    
	
Sanming Kangqian Information Technology Service   Co., Ltd.
    	
 
    	
***
    	
 
    	
70.7414
    	
 
    	
5.00
    	
%
    
	
Total
    	
 
    	
 
    	
 
    	
1,414.8274
    	
 
    	
100
    	
%
    

 

17

 

Appendix II

 

Equity Transfer Contract

 

This Equity Transfer Contract (hereinafter referred to as “this Contract”) was entered into by the following parties this     day of     , 20   in [   ] Municipality in China:

 

Transferor: [                ]

 

Transferee: [                ]

 

Upon amicable negotiations, the above two parties have reached an agreement on equity transfer as follows:

 

1.     The transferor agrees to transfer the [  ]% equity (the “subject equity”) of Tianjin Hongen Perfect Future Education Technology Co., Ltd. held by it to the transferee in RMB   Yuan, and the transferee agrees to assign such subject equity.

 

2.     Upon completion of the transfer of the subject equity, the transferor no longer has the shareholders’ rights of the subject equity and the shareholders’ obligation to undertake the subject equity. The transferee has the shareholders’ rights of the subject equity and the shareholders’ obligation to undertake the subject equity.

 

3.   For matters not covered in this Contract, both parties may sign a supplementary agreement.

 

4.   This Contract shall come into effect from the date of signing by both parties.

 

5.   This Contract is in quadruplicate. Each party holds a copy and other copies are used for industrial and commercial change.

 

Transferor: [     ]

Signature:

 

 

Transferee: [     ]

Signature:

 

18

 

Appendix III

 

Letter of Consent

 

To: Hongen Perfect Future (Tianjin) Investment Co., Ltd.

 

As a shareholder of Tianjin Hongen Perfect Future Education Technology Co., Ltd. (the “Company”), I hereby agree and confirm as follows:

 

1.                   Agree and accept all terms and conditions of the “Exclusive Call Option Agreement” signed by the Company and myself with Hongen Perfect Future (Tianjin) Investment Co., Ltd. (“WFOE”) this 24th day of June, 2020,and take all actions to assist WFOE in the transfer of relevant equity interests when exercising the exclusive call option over the Company’s equity in WFOE pursuant to the provisions of such agreement.

 

2.                   Agree other shareholders of the Company to transfer the Company’s equity held by them to WFOE or its designated third party, and I abstain from the preemptive right.

 

3.                   Agree that when other shareholders of the Company transfer the Company’s equity held by them to WFOE or its designated third party, I will sign or provide the necessary documents for the purpose of the equity transfer.

 

Sincerely,

 

[           ]

 

 

Signature:

 

19

 

Appendix IV

 

Exercise Notice

 

To: All shareholders of Tianjin Hongen Perfect Future Education Technology Co., Ltd.; and / or Tianjin Hongen Perfect Future Education Technology Co., Ltd.

 

In view of the signing of an “Exclusive Call Option Agreement” this 24th day of June, 2020,between the Company and you, it is agreed that, subject to the conditions permitted by the relevant PRC laws and regulations, you shall, pursuant to the requirements of the Company, sell to the Company or the transferee designed by the Company all or part of the equity interest in Tianjin Hongen Perfect Future Education Technology Co., Ltd. held by you.

 

Accordingly, the Company hereby issues this notice to you as follows:

 

The Company hereby requires the exercise of the option under the “Exclusive Call Option Agreement” for the purchase of the equity held by you, accounting for [        ]% of registered capital of Tianjin Hongen Perfect Future Education Technology Co., Ltd. (“equity to be transferred”), by the Company / the transferee designated by the Company at a price of RMB [  ] Yuan. Please, upon receipt of this notice, immediately handle the necessary formalities for the sale of all the equity to be transferred to the Company / the transferee designated by the Company pursuant to the agreement of the “Exclusive Call Option Agreement”.

 

 

Hongen Perfect Future (Tianjin) Investment Co., Ltd. (Seal)

 

	
Authorized   representative (Signature):
    	
 
    	
 
    

 

Date:

 

20

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