Document:

stg-ex420_192.htm

 

Exhibit 4.20

 

 

  

Equity Interest Pledge Agreement

 

This Equity Interest Pledge Agreement (hereinafter referred to as “Agreement”) was made as of the 21st day of February, 2021 in Beijing, the People’s Republic of China (“PRC”) by and among the parties (hereinafter referred to as “Parties”) as follows:

 

Party A: Tianjin Studyvip Education Co., Limited

 

Registered Address: Dongfangmingdi 1808, West Binhe Road, China (Tianjin) Pilot Free-Trade Zone, Tianjin, China

 

Legal Representative: LIU Tongbo

 

 

Party B: As shown in Annex I hereto (hereinafter referred to as the “Pledgors”)

 

 

Party C: Beijing Feibian Education Technology Co., Ltd.

 

Registered Address: 1063 Huihe South Street, M1161, 1st Floor, Building No, 1, Banbidian Villiage, Gaobeidian County, Chaoyang District, Beijing, China

 

Legal Representative: CHENG Xinhui

 

Whereas:

 

 

			
	
 
	
1.
	
The Pledgee is a wholly foreign-owned enterprise legally incorporated and existing under the law of the PRC.

 

			
	
 
	
2.
	
Party C is a limited liability company legally incorporated and existing under the law of the PRC.

 

			
	
 
	
3.
	
The Pledgors as a whole holds one hundred (100) percent of the equity of Party C, with the shareholding structure be listed in Annex II hereto.

 

			
	
 
	
4.
	
The Exclusive Technical Consultation and Service Agreement, the Business Operation Agreement and the Option Agreement were made as of 21st day of February, 2021 by and among the Pledgee, the Pledgors and Party C.

 

			
	
 
	
5.
	
For the purpose of guaranteeing the collection by the Pledgee from Party C the service costs under the Exclusive Technical Consultation and Service Agreement and guaranteeing the performance of Individual Agreements (defined below), the Pledgors jointly and severally use all of the equity they hold in Party C as the pledge security for such Agreement, and the Pledgee shall be Party A.

 

Therefore, this Agreement is entered into by and among the Parties through friendly consultation based on the principle of equality and mutual benefit subject to the terms and conditions as follows:

 

			
	
 
	
1.
	
Definition

 

 

1

 

The following terms shall be interpreted as defined below unless otherwise provided herein:

 

			
	
 
	
1.1
	
Pledge Right shall refer to all the contents as described in Section 2 below.

 

			
	
 
	
1.2
	
Equity shall refer to the one hundred (100) percent of the equity legally held by the Pledgors as a whole and any and all the current and future rights and benefits arising out of the foregoing.

 

			
	
 
	
1.3
	
Individual Agreements shall refer to the Exclusive Technical Consultation and Service Agreement, the Business Operation Agreement and the Option Agreement made as of the 21st day of February, 2021 by and among the Pledgee, Party C and other parties.

 

			
	
 
	
1.4
	
A Default Event shall refer to any of the circumstances described in Section 7 below.

 

			
	
 
	
1.5
	
Default Notice shall refer to a notice declaring a Default Event which is issued by a Pledgor pursuant to this Agreement.

 

			
	
 
	
2.
	
Pledge

 

			
	
 
	
2.1
	
The Pledgors pledge to the Pledgee as the security of the Pledgee’s rights and benefits under the Individual Agreements all the Equity owned by the Pledgors and the dividends which arise from the Equity during the effective term of this Agreement.

 

			
	
 
	
2.2
	
The scope guaranteed by the pledge of the Equity hereunder shall be all fees, costs and expenses (including legal costs) payable by Party C and/or the Pledgors, and the losses, interest, liquidated damages, compensation, the costs for realizing the claims, and the liability that Party C and/or the Pledgors shall bear in case of entire or partial invalidation of any of Individual Agreements for any reason. In case the competent industrial and commercial administration expressly requires a definite amount of the guaranteed claims during the handling of the Equity pledge registration process, the parties hereto agree, for the sole purpose of handling the Equity pledge registration, to register as the amount of the claims under the Individual Agreements CNY 5,000,000 and any and all breach-of-contract liability and damages under the related agreements. The parties further acknowledge that for the purpose of handling the Equity pledge registration, the foregoing amount shall not diminish or limit any rights or interest that Party A has under the Individual Agreements and this Equity Pledge Agreement.

 

			
	
 
	
2.3
	
The Pledge Rights hereunder shall refer to the rights for the Pledgee to be paid from in priority the money gained from the conversion into money, auction or sale of the Equity pledged by the Pledgors to the Pledgee.

 

			
	
 
	
2.4
	
After this Agreement takes effect, unless expressly agreed by the Pledgee in writing, the pledge hereunder may be relieved only after Party C and the Pledgors have properly and fully performed all of their obligations under the Individual Agreements and the performance thereof has been recognized by the Pledgee in writing. In case Party C or any of the Pledgors fails to fully perform any of its obligations under the Individual Agreements upon expiration of the period described thereunder, the Pledgors shall still has the Pledge Rights herein; and the pledge will be relieved until the foregoing obligations and liability have been fully performed to the Pledgee’s satisfaction.

 

			
	
 
	
3.
	
Effectiveness

 

			
	
 
	
3.1
	
This Agreement shall be formed and take effect as of the date of being signed and/or sealed by the parties hereto. The Pledge Rights hereunder shall be set up and take effect as of the date when the registration formalities regarding the Equity pledge have been completed at Party C’s competent industrial and commercial administration.

 

2

 

 

			
	
 
	
3.2
	
During the effective term of this Agreement, in case Party C fails to pay the service costs subject to the Exclusive Technical Consultation and Service Agreement or perform any other obligations thereunder, the Pledgee shall have the right to exercise the Pledge Rights hereunder after issuing a reasonable notice.

 

			
	
 
	
4.
	
Possession and Custody of the Pledge Rights Receipts; Registration of Pledge Rights

 

			
	
 
	
4.1
	
The Pledgors shall, within Ten (10) business days after the execution of this Agreement or any other date mutually negotiated and fixed by the Parties hereto, deliver to the Pledgee the Equity Contribution Certificate (Original) for the pledge’s custody, submit to the Pledgee the certification that the pledge hereunder has been properly registered in Party C’s Shareholders’ Register, and handle any and all examinations and approvals and registration and filing formalities (including but not limited to, handling the Equity pledge registration formalities at Party C’s competent industrial and commercial administration subject to the laws of China) required by the laws and regulations of China.

 

			
	
 
	
4.2
	
In case of any change of particulars and the registration needs to be legally changed accordingly, the Pledgee and the Pledgors shall, within Five (5) business days as of the date of change of particulars, carry out the change of registration accordingly, submit the applicable change of registration documents and handle the applicable change registration formalities at Party C’s competent industrial and commercial administration.

 

			
	
 
	
4.3
	
During the Equity pledge period, the Pledgors shall instruct Party C not to distribute any dividend or bonus or approve any profit distribution program; or in case the Pledgors shall obtain any economic interest of any nature from the pledged Equity other than dividend or bonus or any other profit distribution program, the Pledgors shall remit, as required and instructed by the Pledgee, to the banking account specified by the Pledgee the applicable (realized) amount, which shall not be used by the Pledgors without the Pledgee’s prior written consent.

 

			
	
 
	
4.4
	
During the Equity pledge period, in case the any of the Pledgors subscribe for or purchase any of Party C’s new registered capital or any of Party C’s Equity held by any other Pledgor (the “New Equity”), the New Equity will then automatically form part of the pledged Equity hereunder, and such Pledgor shall complete any and all formalities regarding the pledge of the New Equity within Ten (10) business days following its acquisition of the New Equity. In case the Pledgor fails to complete the applicable formalities as required in the preceding sentence, the Pledgee may promptly have the Pledge Rights realized pursuant to Section 8 below.

 

			
	
 
	
5.
	
Representations and Warranties of the Pledgors

 

Upon the execution of this Agreement, the Pledgors make to the Pledgee the following representations and warranties and confirm that this Agreement is signed and performed by the Pledgee by them in reliance of such representations and warranties:

 

			
	
 
	
5.1
	
The Pledgors lawfully hold the Equity hereunder and have the right to use such Equity to provide pledge security to the Pledgee.

 

			
	
 
	
5.2
	
After this Agreement is executed, during the period when the Pledgee has the Pledge Rights subject to Section 2.4 above, when the Pledgee exercises, at any time, its rights or has the Pledge Rights realized pursuant to this Agreement, there shall be no lawful claim or proper intervention from or by any third party.

 

			
	
 
	
5.3
	
The Pledgee shall have the right to exercise the Pledge Rights as per the method described herein or otherwise permitted by the laws and regulations.

 

3

 

 

			
	
 
	
5.4
	
The Pledgors have obtained all necessary corporate authorization to sign this Agreement and perform its obligations hereunder, which does not violate any provisions of any applicable laws and regulations. The authorized representative signatories of this Agreement have obtained legal and effective authorization.

 

			
	
 
	
5.5
	
There is no encumbrance or security interest of any nature for any third person (including but not limited to pledge) except for the pledge hereunder in connection with the Equity held by the Pledgors.

 

			
	
 
	
5.6
	
There are no pending or threatened civil, administrative or criminal proceedings, administrative punishment or arbitration in connection with the Equity.

 

			
	
 
	
5.7
	
There are no tax or fee due but unpaid, or legal procedures or formalities that should have been completed but have not been completed, in connection with the Equity.

 

			
	
 
	
5.8
	
Any and all provisions hereof are the expression of the Pledgors’ true intention and are binding upon the Pledgors.

 

			
	
 
	
6.
	
Undertaking of the Pledgors

 

			
	
 
	
6.1
	
During the effective term of this Agreement, the Pledgors undertake to the Pledgee that the Pledgors:

 

			
	
 
	
6.1.1
	
Except for the transfer of the Equity to the Pledgee or any other person specified by the Pledgee as required by the Pledgee, prior to the full performance of their obligations thereunder, without the Pledgee’s prior written consent, will not transfer the Equity or create, or permit, any pledge or any other encumbrance that may affect the Pledgee’s rights or interest or any third-person security interest of any form. Without the Pledgee’s prior written consent, the Pledgors shall not take any action which will or may result in change to the Equity or any rights incidental to the Equity, which will or may then result in substantially adverse effects upon the Pledgee’s rights.

 

			
	
 
	
6.1.2
	
Comply with and implement the provisions of all applicable laws and regulations, and within Five (5) business days upon receipt of any notice, order or suggestion issued or prepared by the relevant competent authority in connection with the Pledge Rights, produce to the Pledgee such notice, order or suggestion and take action as reasonably instructed by the Pledgee.

 

			
	
 
	
6.1.3
	
Timely notify the Pledgee any event or notice received that may affect the Pledgors’ Equity or other rights hereunder, any event or notice received that may affect any of the Pledgors’ obligations hereunder or affect the Pledgors’ performance of any of their obligations hereunder, and take action as reasonably instructed by the Pledgee.

 

			
	
 
	
6.2
	
The Pledgors agree that they will procure that the exercise by the Pledgee of any of its rights pursuant to the provisions of this Agreement will not be interrupted or prevented by the Pledgors or their successors or assignees or any other persons.

 

			

 

4

 

			
	
 
	
6.3
	
The Pledgors warrant to the Pledgee that for the purpose of protecting or perfecting the security of the Pledgors and/or Party C’s obligations under the Individual Agreements, the Pledgors will make all necessary amendments to Party C’s Articles of Association (if applicable), honestly sign, and procure any other persons who has interest in Pledge Rights to sign all title or right certificates and deeds as requested by the Pledgee, and/or perform, and procure any other persons who has interest therein to perform, the acts as reasonably requested by the Pledgee, facilitate the exercise by the 

Pledgee of the Pledge Rights, sign all documents related to the Equity certificate change with the Pledgee or any third party appointed by the Pledgee, and provide to the Pledgee within a reasonable period all the documents related to the Pledge Rights as needed by the Pledgee.

 

			
	
 
	
6.4
	
The Pledgors warrant to the Pledgee that for the protection of the Pledgee’s interest, the Pledgors will comply with and perform all warranties, undertaking, covenants and representations. In case the Pledgors fail to perform, or partially perform, their warranties, undertaking, covenants or representations, the Pledgors shall indemnify all the loss suffered by the Pledgee arising out thereof or in connection therewith.

 

			
	
 
	
7.
	
Default Event

 

			
	
 
	
7.1
	
Any of the following events will be deemed to be a Default Event:

 

			
	
 
	
7.1.1
	
Party C or any of its successors or assignees fails to fully pay on schedule any amounts payable under the Individual Agreements, or the Pledgors or their successors or assignees fail to perform any of their obligations under the Individual Agreements.

 

			
	
 
	
7.1.2
	
Any representation, warranty or undertaking made by the Pledgors under Section 5 or 6 above is substantially misleading or incorrect, and/or the Pledgors violates any representation, warranty or undertaking made by the Pledgors under Section 5 or 6 above.

 

			
	
 
	
7.1.3
	
The Pledgors or Party C violates any provision of this Agreement.

 

			
	
 
	
7.1.4
	
Except as otherwise agreed in Section 6.1.1 above, the Pledgors transfer or otherwise dispose the pledged Equity without the Pledgee’s written consent.

 

			
	
 
	
7.1.5
	
Any of the Pledgors’ external borrowings, security, compensation, undertaking or other debt or liability shall be repaid or performed in advance or is due but cannot be repaid or performed on schedule, which makes the Pledgee reasonably believe that the Pledgors’ ability to perform any of their obligations is affected, which further affect the Pledgee’s interest.

 

			
	
 
	
7.1.6
	
The Pledgors cannot perform any of their general debt or other debt, which further affects the Pledgee’s interest.

 

			
	
 
	
7.1.7
	
The promulgation of any law results in invalidation of this Agreement or inability of the Pledgors to continuously perform any of their obligations hereunder.

 

			
	
 
	
7.1.8
	
The consent, permit, approval or authorization of any governmental department necessary to legalize, validate or enforce this Agreement is withdrawn, suspended, invalidated or substantially amended.

 

			
	
 
	
7.1.9
	
There occurs any adverse change to any of the assets owned by the Pledgors, which makes the Pledgee believe that the Pledgors’ ability to perform any of their obligations is affected.

 

			
	
 
	
7.1.10
	
Any other event that the Pledgee cannot exercise or otherwise dispose of the Pledge Rights under the applicable laws.

 

			
	
 
	
7.2
	
The Pledgors and/or Party C shall immediately notify the Pledgee in writing any of the events described in Section 7.1 above or the occurrence or potential occurrence thereof the Pledgors and/or Party C becomes aware of or discovers.

 

 

5

 

			
			
	
 
	
7.3
	
Unless the default events listed in Section 7.1 above have been perfectly settled to the Pledgee’s satisfaction, the Pledgee may, upon the occurrence of such default event or at any time following the occurrence thereof, issue a written default notice to the Pledgors and/or Party C, requesting the Pledgors and/or Party C to immediately pay the money owned or other payables under the Exclusive Technical Consultation and Service Agreement or to timely perform the obligations under the Individual Agreements. In case the Pledgors or Party C fails to timely correct their defaults, or take necessary remedies, within Ten (10) business days following the issuance of such written notice, the Pledgee may exercise the Pledge Rights pursuant to Section 8 below.

 

			
	
 
	
8.
	
Exercise of Pledge Rights

 

			
	
 
	
8.1
	
The Pledgee shall issue a default notice to the Pledgors as described in Section 7.3 above upon its exercise of the Pledge Rights.

 

			
	
 
	
8.2
	
Subject to Section 7.3 above, the Pledgee may exercise the Pledge Rights at any time following its issuance of the default notice as described in Section 7.3.

 

			
	
 
	
8.3
	
The Pledgee shall have the right to convert into money and sell all or part of the Equity hereunder subject to the statutory procedures, or to be paid in priority from the money gained from auction or sale of such Equity, until full offset of the service costs and other payables unpaid under the Individual Agreements and full performance of other obligations under the Individual Agreements.

 

			
	
 
	
8.4
	
When the Pledgee exercises the Pledge Rights pursuant to this Agreement, the Pledgors and/or Party C shall not create any barrier or hindrance but shall offer necessary assistance, so as to facilitate the Pledgee’s realization of its Pledge Rights.

 

			
	
 
	
9.
	
Transfer

 

			
	
 
	
9.1
	
The Pledgors shall not transfer to any third party any of their rights or obligations hereunder without the Pledgee’s prior written and explicit consent.

 

			
	
 
	
9.2
	
This Agreement shall be binding upon the Pledgors and their successors and the Pledgee and its successors or assignees.

 

			
	
 
	
9.3
	
The Pledgee may at any time transfer any or all of its rights or obligations under the Individual Agreements to any third party it specified, under which circumstance, the assignee shall accordingly have and bear the rights and obligations which the Pledgee have and bear hereunder. Upon the transfer by the Pledgee of the rights or obligations hereunder, the Pledgors shall, as requested by the Pledgee, sign the corresponding agreements and/or documents regarding the transfer thereof.

 

			
	
 
	
9.4
	
In case there is a change of the Pledgee due to the transfer of the rights or obligations as described in Section 9.3 above, the substitute Pledgee and the Pledgors shall re-sign the pledge agreement and the Pledgors shall be responsible for handling all applicable registration formalities.

 

			
	
 
	
10.
	
Charges and Other Costs

 

All costs and actual expenses related to this Agreement, including but not limited to the legal costs, print costs, stamp duty and any other tax and charges, shall be equally borne by the Pledgee and Party C.

 

			
	
 
	
11.
	
Force Majeure

 

			

 

6

 

			
	
 
	
11.1
	
“Force Majeure Events” mean any events beyond the reasonable control of one Party that are unavoidable by the affected Party with reasonable care, including but not limited to any acts of government, natural force, fire, explosion, storm, flood, earthquake, tide, lightning or war, provided that any credit, capital or financing shortage shall not be deemed to be the event beyond the reasonable control of one Party. The Party affected by any Force Majeure Events (hereinafter 

referred to as “Affected Party”) shall be exempted from its responsibility in whole or in part according to the effects of such Force Majeure Events on this Agreement, and the Affected Party who seeks exemption from its responsibility for the performance of this Agreement due to such Force Majeure Events shall notify the other Party of such Force Majeure Events not later than Ten (10) days after occurrence of such Force Majeure Events so that the Parties hereto negotiate about the amendment to this Agreement according to the effects of such Force Majeure Events and exempt in whole or in part the Affected Party from its obligations under this Agreement.

 

			
	
 
	
11.2
	
The Affected Party shall take appropriate measures to reduce or eliminate the effects of such Force Majeure Events and shall try to restore the performance of its obligations delayed or hindered by such Force Majeure Events. Once such Force Majeure Events are eliminated, the Parties hereto agree that they shall use their best efforts to restore the performance of their rights and obligations under this Agreement.

 

			
	
 
	
12.
	
Governing Law and Dispute Settlement

 

			
	
 
	
12.1
	
This Agreement shall be governed by and construed in accordance with the laws of the PRC.

 

			
	
 
	
12.2
	
In case of any disputes among the Parties arising out of the construction and performance of any provisions of this Agreement, the Parties shall resolve such disputes through consultation in good faith. If such disputes cannot be resolved through consultation, any Party may submit such disputes to China International Economic and Trade Arbitration Commission for resolution by arbitration in accordance with the existing arbitration rules of such Commission in force. The place of arbitration shall be Beijing, and the language to be used in the arbitration proceedings shall be Chinese. Any arbitral award shall be final and binding upon the Parties. No provisions of this Section shall be affected by any termination or cancellation of this Agreement.

 

			
	
 
	
12.3
	
Except for any matters disputed by the Parties hereto, the Parties hereto shall continue to perform their respective obligations under this Agreement based on the principle of good faith.

 

			
	
 
	
13.
	
Notices

 

Any notices sent by the Parties for the performance of their rights and obligations under this Agreement shall be made in writing and be sent to the following addresses of one or all of the Parties hereto by personal delivery, registered mail, postage prepaid mail, recognized express service or facsimile transmission.

 

 

Party A,

 

Address: No. 36 Courtyard, Chuangyuan Road, Building No. 6, Laiguangying, Chaoyang District, Beijing, China

 

Tel.: 

 

Attn.: LIU Tongbo

 

 

Party B and Party C:

 

Address: Building No. 4, Chaolai Science and Technology Park, Laiguangying, Chaoyang District, Beijing, China

 

Tel.: 

 

Attn.: CHENG Xinhui

 

7

 

 

 

			
	
 
	
14.
	
Annex

 

The annexes hereto shall form part of this Agreement.

 

			
	
 
	
15.
	
Waiver

 

The Pledgee’s failure to exercise or delayed exercise of any rights, remedies, powers or privileges hereunder shall not be deemed to be waiver of such rights, remedies, powers or privileges. The Pledgee’s single or partial exercise of any rights, remedies, powers or privileges shall not exclude its exercise of any other rights, remedies, powers or privileges.

 

The rights, remedies, powers and privileges hereunder are cumulative and in addition to any other rights, remedies, powers and privileges under any law.

 

			
	
 
	
16.
	
Miscellaneous

 

			
	
 
	
16.1
	
Any modification or supplementation of or amendment to this Agreement shall be in writing and be effective only after being sealed and signed by the Parties hereto.

 

			
	
 
	
16.2
	
The Parties hereby acknowledge that this Agreement shall be a fair and reasonable agreement reached by the Parties hereto on the basis of equality and mutual benefit. In case any provision hereof becomes invalid or cannot be enforced due to conflict with any applicable law, such provision shall be invalid or unenforceable to the sole extent of the jurisdiction of such applicable law and shall in no way influence the legal force of the remaining provisions of this Agreement.

 

			
	
 
	
16.3
	
The Parties hereto agree that in case of any change to Party C’s shareholding structure or any addition or deduction of any of Party C’s shareholders, Party A, Party C and Party C’s then-current shareholders shall re-sign this Agreement, and as of the effective date of the Equity Interest Pledge Agreement re-entered into by and among the foregoing parties, this Agreement will automatically terminate and become invalid.

 

			
	
 
	
16.4
	
This Agreement is written in Chinese and is executed in Four (4) original copies.

 

 

8

 

[This page is the signature page to the Equity Interest Pledge Agreement]

 

 

 

Party A: 

 

Legal or Authorized Representative: /s/ LIU Tongbo (Seal)

 

 

Party B:

 

CHENG Xinhui

Signature: /s/ CHENG Xinhui

 

 

JIANG Tao

Signature: /s/ JIANG Tao

 

 

Party C: 

 

Legal or Authorized Representative: /s/ CHENG Xinhui (Seal)

 

 

 

 

 

 

 

Equity Interest Pledge Agreement - Signature Page

 

Annex I Pledgor

 

	
S/N
	
Name of Shareholders
	
ID Card No.

	
1
	
CHENG Xinhui
	
 

	
2
	
JIANG Tao
	
 

 

 

 

Annex II Shareholding Structure

 

	
S/N
	
Name of Shareholders
	
Amount of Contribution
	
Equity Proportion

	
1
	
CHENG Xinhui
	
190
	
95%

	
2
	
JIANG Tao
	
10
	
5%

	
 
	
Total
	
200
	
100%

 

 

 

 

Annex III Form of Party C’s Shareholders’ Register

 

Name of Company: Tianjin Shangde Online Education Technology Co., Ltd.

 

	
Full name of the Shareholder
	
[CHENG Xinhui]
	
ID Card No./ Registration No.
	
[Occupa tion/]
	
Identity
	
Executive Director 

	
Address of Domicile
	
[            ]

	
Date
	
Contribution Amount/ Consideration
	
Shareholding Percentage
	
Note

	
 
	
CNY [190]
	
[            95]%
	
100% of the equity being pledged to [    Tianjin Studyvip Education Co., Limited        ]

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

	
Full name of the Shareholder
	
[JIANG Tao]
	
ID Card No./ Registration No.
	
[           ]
	
Occupation/ Identity
	
 

	
Address of Domicile
	
[            ]

	
Date
	
Contribution Amount/ Consideration
	
Shareholding Percentage
	
Note

	
 
	
CNY [10] 
	
[            5 ]%
	
100% of the equity being pledged to [     Tianjin Studyvip Education Co., Limited          ]

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

Annotation:

 

1. This Shareholders’ Register is prepared as per the Articles of Association of Beijing Feibian Education Technology Co., Ltd. and the Equity Interest Pledge Agreement (the “Pledge Agreement”) was made as of 21st day of February, 2021 and entered into by and among Beijing Feibian Education Technology Co., Ltd. and its shareholders and Tianjin Studyvip Education Co., Limited

 

Note:

 

This Shareholders’ Register is made in ONE (1) original and ONE (1) true and same photocopy of such original. Such ONE (1) original is placed at Tianjin Shangde Online

 

Education Technology Co., Ltd.; and such ONE (1) photocopy being sealed by Tianjin Shangde Online Education Technology Co., Ltd. is handed over to Tianjin Studyvip Education Co., Limited for custody.

 

 

(The remainder of this page is intentionally left blank.)

 

Beijing Feibian Education Technology Co., Ltd. (Seal)

 

	
Legal Representative (Signature):
	
/s/ CHENG Xinhuistg-ex421_193.htm

Exhibit 4.21

 

 

 

Option Agreement

 

This Option Agreement (hereinafter referred to as “Agreement”) was made as of 21st day of February, 2021 in Beijing, the People’s Republic of China (“PRC”) by and among the parties (hereinafter referred to as “Parties”) as follows:

 

Party A: Tianjin Studyvip Education Co., Limited 

 

Registered Address: Dongfangmingdi 1808, West Binhe Road, China (Tianjin) Pilot Free-Trade Zone, Tianjin, China

 

Legal Representative: LIU Tongbo

 

Party B: As shown in Annex I hereto.

 

 

Party C: Beijing Feibian Education Technology Co., Ltd. 

 

Registered Address: 1063 Huihe South Street, M1161, 1st Floor, Building No. 1, Banbidian Villiage, Gaobeidian County, Chaoyang District, Beijing, China

 

Legal Representative: CHENG Xinhui

 

Whereas:

 

 

			
	
 
	
1.
	
Party A is a wholly foreign-owned enterprise incorporated and existing under the laws of the PRC.

 

			
	
 
	
2.
	
Party C is a limited liability company incorporated and existing under the laws of the PRC.

 

			
	
 
	
3.
	
Party B (“Grantors”) directly hold their interests in Party C, and the shareholdings are shown in Annex II hereto.

 

			
	
 
	
4.
	
The Parties hereto signed the Equity Pledge Agreement on the 21st day of February, 2021.

 

			
	
 
	
5.
	
Party B intends to grant Party A or its designated qualified subject an exclusive option to purchase all or part of the shares/assets of Party C held by any or all of Grantors at any time subject to compliance with the requirements of Chinese laws.

 

 

 

Therefore, this Agreement is entered into by and among the Parties as follows:

 

			
	
 
	
1.
	
Granting of the Option

 

			
	
 
	
1.1
	
Granting

 

Grantors agree that, on the date of signing this Agreement, they shall irrevocably grant Party A an option to purchase in installments or lump sum all their shares in Party C by Party A or its designated third party in such way of exercise as stipulated in Section 2.2 hereof. Such option shall be granted to 

Party A after this Agreement is signed by the Parties hereto and shall be irrevocable within the term of this Agreement once granted.

 

			
	
 
	
1.2
	
Term

 

This Agreement shall take effect after being signed and/or sealed by the parties hereto, and shall not be terminated until Party A acquires all shares of Party C held by Grantors subject to the applicable laws of the PRC.

 

			
	
 
	
2.
	
Exercise of Option and Delivery

 

			
	
 
	
2.1
	
Time of Exercise

 

			
	
 
	
2.1.1
	
Grantors unanimously agree that Party A may exercise the option in whole or in part at any time within the term of this Agreement subject to the applicable laws of the PRC;

 

			
	
 
	
2.1.2
	
Grantors unanimously agree that there shall not be any restrictions on number of Party A’s exercise unless Party A has acquired all shares of Party C; and

 

			
	
 
	
2.1.3
	
Grantors unanimously agree that Party A may designate any third party to exercise the option, provided that Party A shall inform in writing Grantors of such designation in advance.

 

			
	
 
	
2.2
	
Exercise Consideration

 

Unless otherwise agreed by the Parties hereto, Grantors unanimously agree that, when Party A or its designated third party exercises the option, all exercise

 

 

 

considerations obtained by Grantors therefor shall be immediately given to Party A or its designated third party free of charge.

 

			
	
 
	
2.3
	
Transfer

 

Grantors unanimously agree that Party A may transfer its option under this Agreement to any third party in whole or in part without separate approval of Grantors, and such transferees shall be deemed to be a party to this Agreement and may exercise the option according to this Agreement in respect of the share of the option acquired by it and shall enjoy and bear all of Party A’s rights and obligations under this Agreement.

 

			
	
 
	
2.4
	
Notice on Exercise

 

			
	
 
	
2.4.1
	
If Party A exercises the option hereunder, it shall notify in writing Grantors of such exercise Ten (10) working days prior to the delivery date (as defined below), and such notice shall specify the following terms:

 

			
	
 
	
(a)
	
Effective delivery date (“Delivery Date”) of the shares after the option is exercised, namely the date on which a formal application for share change registration is filed to the relevant administrative department of industry and commerce;

 

			
	
 
	
(b)
	
Name of the registered holder of the shares after the option is exercised;

 

			
	
 
	
(c)
	
Number of the shares purchased from Grantors;

 

			
	
 
	
(d)
	
Exercise consideration and its payment method; and

 

			
	
 
	
(e)
	
Power of attorney (if exercised by any third party on its behalf).

 

			
	
 
	
2.4.2
	
The Parties hereto agree that Party A may designate at any time any third party to exercise the option and acquire and register the shares in the name of such third party. Grantors agree that, as long as Party A or its designated third party requests to exercise the option, Grantors shall, within Ten (10) working days after receipt of a notice on exercise, sign a share transfer agreement and other relevant documents according to the notice on exercise and this Agreement.

 

 

 

			
	
 
	
2.5
	
Transfer of Shares and Delivery

 

			
	
 
	
2.5.1
	
Whenever Party A exercises the option, within Ten (10) working days from the date of receipt of a notice on exercise sent by Party A according to the Section 2.4 hereof;

 

			
	
 
	
(a)
	
Grantors shall cause Party C to promptly hold a shareholders’ meeting at which a shareholder resolution on the approval of the transfer of shares by Grantors to Party A and/or its designated third party shall be adopted; and

 

			
	
 
	
(b)
	
Grantors shall sign all necessary contracts, agreements or documents, obtain all necessary government approvals and consents and take all necessary actions to transfer to Party A and/or its designated third party the ownership and all ancillary rights of the shares designated by Party A to be purchased without any security interests (other than the pledge under the Equity Pledge Agreement) and shall cause Party A and/or its designated third party to become the registered owner of the purchased shares and deliver to Party A and/or its designated third party the latest business license, articles of association, approval certificates (if applicable) and other relevant documents that are issued or registered by the relevant Chinese authorities, and such documents shall reflect any changes of Party C’s shares, directors and legal representative and other matters (if applicable).

 

			
	
 
	
3.
	
Representations, Warranties and Undertakings

 

			
	
 
	
3.1
	
Grantors jointly and severally make the following representations and warranties:

 

			
	
 
	
3.1.1
	
On the date of signing this Agreement and each Delivery Date, Grantors have the powers, rights, authority and ability to sign and deliver this Agreement and any share transfer agreement (hereinafter referred to as “Transfer Agreement”) signed by them as a party

 

 

 

thereto for each share transfer according to this Agreement and to perform their obligations under this Agreement and any Transfer Agreement. This Agreement and any Transfer Agreement to which they are a party shall constitute their legal, effective and binding obligations that are enforceable on them according to the provisions thereof once signed.

 

			

			
	
 
	
3.1.2
	
No signing and delivery of this Agreement or any Transfer Agreement and no performance by Grantors of their obligations under this Agreement or any Transfer Agreement shall (i) 

result in any violation of any relevant laws and regulations of the PRC; (ii) conflict with the articles of association or other organizational documents; (iii) result in any breach of any binding agreements or instruments to which they are a party or constitute any breach of contract under any binding agreements or instruments to which they are a party; (iv) result in any breach of any licenses or approvals issued by the relevant competent government departments to them; or (v) cause any licenses or approvals issued by the relevant competent government departments to them to be suspended or revoked or attached with any conditions;

 

			
	
 
	
3.1.3
	
There is no suit, arbitration or other judicial or administrative proceedings that are pending or may have a substantial impact on the performance of this Agreement or any Transfer Agreement.

 

			
	
 
	
3.1.4
	
Grantors have good and marketable ownership of all shares of Party C. There are no pledges, liabilities and other third party encumbrances on Party C’s shares held by Grantors other than the pledge under the Equity Pledge Agreement.

 

			
	
 
	
3.1.5
	
Grantors have disclosed to Party A all circumstances that may have a material adverse effect on the performance of this Agreement.

 

			
	
 
	
3.1.6
	
The option granted by Grantors to Party A is exclusive, and Grantors have not otherwise granted any third party any other options or similar rights before or when granting the option to Party A.

 

 

 

			
	
 
	
3.2
	
Grantors jointly and severally make the following undertakings:

 

			
	
 
	
3.2.1
	
Within the term of this Agreement, Grantors will not create any pledges, liabilities and any other third party encumbrances on Party C’s shares held by them other than those under the Equity Pledge Agreement separately signed by Grantors and Party A nor transfer, donate or otherwise dispose of any shares held by them to any third party other than the Parties to this Agreement.

 

			
	
 
	
3.2.2
	
Within the term of this Agreement, Grantors will not otherwise grant any other options or similar rights to any third party.

 

			
	
 
	
3.2.3
	
Within the term of this Agreement, Grantors will cause and ensure that the business carried out by Party C conforms to the applicable laws, regulations, rules and other management regulations and documents issued by the competent government departments and that there are no breach of the above provisions that results in a major adverse impact on the business or assets of the company.

 

			
	
 
	
3.2.4
	
Grantors will maintain the valid existence of Party C in accordance with good financial and commercial standards and practices, operate their business and deal with affairs in a prudent and efficient manner, use their best efforts to obtain and maintain any permits, licenses and approvals necessary for Party C’s continuous operation and ensure that any such permits, licenses and approvals will not be canceled, withdrawn or declared null and void.

 

			
	
 
	
3.2.5
	
Grantors will provide Party A with all Party C’s operation and financial information at Party A’s request.

 

			
			
	
 
	
3.2.6
	
Except as expressly agreed by Party A (or its designated third party) in writing, before Party A (or its designated third party) exercises its option and obtains all of Party C’s shares or assets, Grantors shall not jointly or individually:

 

			
	
 
	
(a)
	
Supplement or modify Party C’s constitutional documents in any form, and such supplements, alterations or modifications will

 

 

 

have substantial adverse effects on any assets, responsibilities, operation, shares and other legal rights of Party C (excluding the same proportion of capital increase for the purpose of meeting the legal requirements) or may affect the effective performance of this Agreement and other agreements signed by Party A, Grantors and Party C.

 

			
	
 
	
(b)
	
Cause Party C to enter into or do any transactions or acts (excluding those that arise in the ordinary or daily business course or have been disclosed to and agreed by Party A expressly in writing in advance) that will have materially adverse effects on its assets, liabilities, operation, shares and other legitimate rights.

 

			
	
 
	
(c)
	
Cause any resolutions on the distribution of dividends or bonuses to be adopted at the shareholders’ meeting of Party C.

 

			
	
 
	
(d)
	
Sell, assign, mortgage or otherwise dispose of any legal or beneficial interests on Party C’s shares or allow to create any other security interests thereon at any time from the effective date of this Agreement.

 

			
	
 
	
(e)
	
Cause any sales, transfer, mortgage or otherwise disposal of any legal or beneficial interests on shares to be approved at the shareholders’ meeting of Party C, or allow to create any other security interests thereon, or adopt a shareholder resolution on the increase or decrease of Party C’s registered capital or otherwise modify the structure of the registered capital.

 

			
	
 
	
(f)
	
Cause any merger or association of Party C with any persons to be approved at the shareholders’ meeting of Party C, or acquire investments from any persons or make an investment to any persons, or carry out reorganization in any other form.

 

			
	
 
	
(g)
	
Cause any winding-up, liquidation or dissolution and other matters of Party C to be approved at the shareholders’ meeting of Party C.

 

 

 

			
	
 
	
3.2.7
	
Before Party A (or its designated third party) exercises its option and obtains all of Party C’s shares or assets, Grantors undertake that:

 

			
	
 
	
(a)
	
They will forthwith notify Party A in writing of any suits, arbitration or administrative proceedings that have arisen or may arise in relation to the shares owned by them or of any circumstances that may have any adverse effect on such shares.

 

			

			
	
 
	
(b)
	
They will cause the shareholders’ meeting of Party C to examine and approve the transfer of the purchased shares as specified in this Agreement, cause Party C to amend its articles of association so as to reflect any changes of Party C’s shares after Party A and/or its designated third party exercises the option according to this Agreement and other changes as set forth herein and immediately apply to the 

authorities of the PRC for approval (if required by law) and change of registration, and cause the shareholders’ meeting of Party C to approve and appoint such persons as designated by Party A and/or its designated third party as Party C’s director and legal representative (if necessary).

 

			
	
 
	
(c)
	
Before Party A and/or its designated third party exercises the option, they will enter into all necessary or appropriate documents, take all necessary or appropriate actions and make all necessary or appropriate accusations or make all necessary and appropriate defenses for all claims in order to maintain their lawful and effective ownership over the appropriate shares.

 

			
	
 
	
(d)
	
Upon Party A’s request at any time, they will unconditionally transfer their shares to Party A and/or its designated third party at the time specified by Party A and waive their right of first refusal against any other shareholders of Party C in respect of the above transfer of shares by them according to Party A’s instructions.

 

			
	
 
	
(e)
	
They will strictly abide by this Agreement and other agreements jointly or severally entered into by and between Grantors and

 

 

 

Party A, conscientiously perform their obligations under such agreements and will not do any acts/omissions that are likely to affect the validity and enforceability of such agreements.

 

			
	
 
	
3.3
	
Party C and Grantors hereby jointly and severally make the following representations, warranties and undertakings to Party A:

 

			
	
 
	
3.3.1
	
Except as agreed by Party A (or its designated third party) in writing, before Party A (or its designated third party) exercises its option and obtains all of Party C’s shares or interests, Party C shall not:

 

			
	
 
	
(a)
	
Sell, assign, mortgage or otherwise dispose of any assets, business or incomes or allow to create any other security interests thereon (excluding those that arise in the ordinary or daily business course or have been disclosed to and agreed by Party A expressly in writing in advance);

 

			
	
 
	
(b)
	
Enter into any transactions (excluding those that arise in the ordinary or daily business course or have been disclosed to and agreed by Party A expressly in writing in advance) that will or may have materially adverse effects on its assets, liabilities, operation, shares and other legitimate rights;

 

			
	
 
	
(c)
	
Distribute any dividends or bonuses to each shareholder in any form;

 

			
	
 
	
(d)
	
Incur, inherit, guarantee or allow the existence of any debts other than (i) any debts that arise in the ordinary or daily business course rather than by borrowing, and (ii) any debts that have been disclosed to and agreed by Party A expressly in writing in advance;

 

			
	
 
	
(e)
	
Sign any significant contracts other than those signed in the ordinary business course (for the purpose of this Article, if the amount under a contract is more than RMB50,000, such contract shall be deemed to be a significant contract);

 

			
	
 
	
(f)
	
Adopt a shareholder resolution on the increase or decrease of

 

 

 

Party C’s registered capital or otherwise modify the structure of the registered capital;

 

			
	
 
	
(g)
	
Supplement, modify or amend Party C’s articles of association in any form; and

 

			
	
 
	
(h)
	
Enter into merge or association with any persons, or acquire investments from any persons or make an investment to any persons.

 

			
	
 
	
3.3.2
	
On the date of signing this Agreement and each Delivery Date, Party C has no outstanding debts other than (i) any debts arising in its ordinary business course; and (ii) any debts that have been disclosed to and agreed by Party A expressly in writing in advance.

 

			
	
 
	
3.3.3
	
On the date of signing this Agreement and each Delivery Date, there is no suit, arbitration or administrative proceedings that are ongoing or may occur in relation to the shares, Party C’s assets or that may have a substantial impact on the performance of this Agreement by Party C other than those that have been disclosed to and agreed by Party A expressly in writing in advance.

 

			
	
 
	
3.3.4
	
Party C has not been declared bankrupt.

 

			
	
 
	
3.3.5
	
Party C hereby undertakes to Party A that it will comply with all laws and regulations applicable to the acquisition of shares and assets within the term of this Agreement, bear all expenses arising out of the share transfer and handle all procedures necessary for enabling Party A or its designated third party to become Party C’s shareholder, including but not limited to assisting Party A in obtaining any necessary approvals in relation to the share transfer from the approval authorities, submitting the relevant applications required for handling the share change registration to the competent administrative department of industry and commerce and amending the register of shareholders.

 

 

 

			
	
 
	
4.
	
Taxes

 

All taxes arising out of the performance of this Agreement shall be borne by Party C.

 

			
	
 
	
5.
	
Breach of Contract

 

Except as otherwise stipulated herein, if any Party fails to fully perform or suspend the performance of its obligations under this Agreement and fails to correct such breach within Thirty (30) days from the date of receipt of a notice from the other Party, or any of its representations and warranties under this Agreement are untrue, inaccurate or misleading, such Party shall be deemed to have breached this Agreement.

 

If any Party hereto breaches this Agreement or any of its representations and warranties under this Agreement, the non-breaching Party may notify in writing the breaching Party of correcting such breach within Ten (10) days from the date of receipt of a notice, taking appropriate measures to effectively and promptly avoid any damage and continuing to perform this Agreement. If any damage occurs, the breaching Party shall make compensation to the non-breaching Party so that the non-breaching Party can obtain all rights and interests that should have been obtained by it in the case of the performance of this Agreement

 

If all of the Parties breach this Agreement, they shall determine the respective amount of compensation payable by them according to the degree of their respective breach.

 

			
	
 
	
6.
	
Governing Law and Dispute Resolution

 

			
	
 
	
6.1
	
Governing Law

 

This Agreement shall be governed by and construed in accordance with the laws of the PRC.

 

			
	
 
	
6.2
	
Arbitration

 

In case of any disputes among the Parties arising out of the construction and performance of any provisions of this Agreement, the Parties shall resolve such disputes through consultation in good faith. If such disputes cannot be resolved through consultation, any Party may submit such disputes to China International Economic and Trade Arbitration Commission for resolution by

 

 

 

arbitration in accordance with the existing arbitration rules of such Commission in force. The place of arbitration shall be Beijing, and the language to be used in the arbitration proceedings shall be Chinese. Any arbitral award shall be final and binding upon the Parties. No provisions of this Article shall be affected by any termination or cancellation of this Agreement.

 

			
	
 
	
6.3
	
Continue to Perform

 

Except for any matters disputed by the Parties hereto, the Parties hereto shall continue to perform their respective obligations under this Agreement based on the principle of good faith.

 

			
	
 
	
7.
	
Confidentiality

 

			
	
 
	
7.1
	
Confidential Information

 

Any contents of this Agreement and its annexes shall be kept confidential. Any Party shall not disclose to any third party any information contained herein (unless they obtain the prior written consent of the Parties hereto). These provisions hereof shall survive the termination of this Agreement.

 

			
	
 
	
7.2
	
Exceptions

 

Any disclosure of any confidential information required by the laws, court judgments, arbitral awards and decisions of governmental authorities shall not constitute a breach of the Section 7.1 above.

 

			
	
 
	
8.
	
Miscellaneous

 

			
	
 
	
8.1
	
Entire Agreement

 

This Agreement shall constitute an entire agreement among the Parties hereto in respect of the matters involved herein. In case of any discrepancies between any prior discussions, negotiations and agreement and this Agreement, this Agreement shall prevail. This Agreement shall be amended by the Parties in writing. Any annexes hereto shall form an integral part of this Agreement and be equally authentic as this Agreement.

 

			
	
 
	
8.2
	
Notices

 

 

 

			
	
 
	
8.2.1
	
Any notices sent by the Parties for the performance of their rights and obligations under this Agreement shall be made in writing and be sent to the following addresses of one or all of the Parties hereto by personal delivery, registered mail, postage prepaid mail, recognized express service or facsimile transmission:

 

 

Party A,

 

Address: [●]

Tel.: 

Attn.: [●]

 

Party B and Party C:

 

Address: [●]

Tel.: 

Attn.: [●]

 

			
	
 
	
8.2.2
	
All notices and correspondences shall be deemed to have been delivered under the following circumstances:

 

			
	
 
	
(a)
	
If delivered by fax, the date displayed on the fax machine shall be the date of delivery, provided that, when such notices sent by fax are delivered later than 5:00 p.m. or on any non-working day in the place of delivery, the working day following the date displayed shall be the date of delivery;

 

			
	
 
	
(b)
	
If delivered by personal delivery (including by express mail service), the date of signing for such notices shall be the date of delivery; and

 

			
	
 
	
(c)
	
If delivered by registered mail, the Fifteenth (15th) day following the date shown in the return receipt of such registered mail shall be the date of delivery.

 

			
	
 
	
8.2.3
	
Binding force

 

This Agreement shall be binding on the Parties hereto.

 

			
	
 
	
8.3
	
Language

 

This Agreement is written in Chinese and is executed in four (4) copies.

 

			
	
 
	
8.4
	
Day and Working Day

 

 

 

“Day” referred to herein shall be the calendar day; “Working Day” referred to herein shall be any day from Monday to Friday.

 

			
	
 
	
8.5
	
Headings

 

The headings hereunder are for reading convenience only and shall not be used for the interpretation of this Agreement.

 

			
	
 
	
8.6
	
Pending matters

 

Any matters not stipulated herein shall be resolved by the Parties hereto through friendly consultation in accordance with the laws of the PRC.

 

			
	
 
	
8.7
	
Termination

 

The Parties hereto acknowledge that, in case of any change of shareholding structure of Party C or any increase or decrease of shareholders, Party A, Party C and all existing shareholders of Party C shall re-sign this Agreement and that this Agreement shall be automatically terminated and become invalid from the effective date of the option agreement re-signed by the aforesaid Parties.

 

[The remainder of this page is intentionally left blank]

 

 

 

[This page is the signature page to the Option Agreement]

 

Party A: 

Legal or Authorized Representative: /s/ LIU Tongbo (Seal)

 

 

Party B:

 

 

CHENG Xinhui

Signature: /s/ CHENG Xinhui

 

 

JIANG Tao

Signature: /s/ JIANG Tao

 

 

 

Party C: 

Legal or Authorized Representative: /s/ CHENG Xinhui (Seal)

 

 

 

Annex I Party C’s Shareholders

 

	
S/N
	
Name of Shareholders
	
ID Card No.

	
1
	
CHENG Xinhui
	
 

	
2
	
JIANG Tao
	
 

 

 

Annex II Party C’s Shareholding Structure

 

	
S/N
	
Name of Shareholders
	
Amount of Contribution (CNY 10000)
	
Equity Proportion

	
1
	
CHENG Xinhui
	
190
	
95%

	
2
	
JIANG Tao
	
10
	
5%

	
 
	
Total
	
200
	
100%

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