Document:

Exhibit 10.10

 

Exclusive Call Option Agreement

 

Zhuhai Likeshuo Education Technology Co., Ltd.

 

amongst

 

Domestic Affiliates as shown in Annex I

 

and

 

Likeshuo Education Shareholders as shown in Annex II

 

November 23, 2018

 

 

Table of Contents

 

	
1. Definition and   Interpretation
    	
5
    
	
 
    	
 
    
	
2. Equity Transfer of   Domestic Affiliates
    	
6
    
	
 
    	
 
    
	
3. Covenants
    	
8
    
	
 
    	
 
    
	
4. Representations and   Warranties of Likeshuo Education Shareholders
    	
12
    
	
 
    	
 
    
	
5. Representations and   Warranties of Domestic Affiliates
    	
13
    
	
 
    	
 
    
	
6. Representations and   Warrants of WFOE
    	
15
    
	
 
    	
 
    
	
7. Damage Liability and   Remedy Measures
    	
15
    
	
 
    	
 
    
	
8. Term
    	
16
    
	
 
    	
 
    
	
9. Confidentiality
    	
17
    
	
 
    	
 
    
	
10. Force Majeure
    	
17
    
	
 
    	
 
    
	
11. Changed   Circumstances
    	
18
    
	
 
    	
 
    
	
12. Miscellaneous
    	
18
    
	
 
    	
 
    
	
Annex I: Domestic   Affiliates
    	
16
    
	
 
    	
 
    
	
Annex II: Likeshuo   Education Shareholders
    	
17
    

 

1

 

This Exclusive Call Option Agreement (hereinafter referred to as this “Agreement”) was entered into by the following parties on November 23, 2018:

 

A.                Zhuhai Likeshuo Education Technology Co., Ltd., a wholly foreign-owned enterprise legally established and existing under the laws of China, with the unified social credit code of 91440400MA52A29B5L. Its registered address is at Room 105 (59219 (concentrated office area)), No. 6, Baohua Road, Hengqin New District, Zhuhai (hereinafter referred to as the “WFOE”);

 

B.                Jishuang Zhao, a Chinese citizen whose ID number is [ ], and the residential address is at Room 16D, Building 1, Jinhaiwan Garden, Furong Road, Futian District, Shenzhen, Guangdong Province;

 

C.                Siguang Peng, a Chinese citizen whose ID number is [ ], and the residential address is at 17D, Building 1, Golden Bay Garden, Furong Road, Futian District, Shenzhen.

 

D.                Yupeng Guo, a Chinese citizen whose ID number is [ ], and the residential address is at A-2, 3rd Floor, Times Fortune Building, No. 88 Fuhua Three Road, Futian District, Shenzhen, Guangdong Province;

 

E.                 Yun Feng, a Chinese citizen whose ID number is [ ], and the residential address is at Room 504, No. 29, Gexin Road, Baoshan District, Shanghai.

 

F.                  Jun Yao, a Chinese citizen whose ID number is [ ], and the residential address is at 17P, Jinzhong Building, Nanshan District, Shenzhen, Guangdong Province;

 

G.                Tong Zeng, a Chinese citizen whose ID number is [ ], and the residential address is at 2-603, Building 3, No. 3110 Renmin North Road, Luohu District, Shenzhen;

 

H.               Yongchao Chen, a Chinese citizen whose ID number is [ ], and the residential address is at 6D, Building 27, Gang Zhong Lv Garden, No. 21 Nongyuan Road, Futian District, Shenzhen, Guangdong Province;

 

(the aforementioned paragraphs B to H, hereinafter collectively referred to as “Likeshuo Education Individual Shareholders”)

 

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I.                    Xinyu Meilianzhong Investment Management Center (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 913605033329529727. Its registered address is at Yangtiangang International Eco-City in Xiannvhu District, Xinyu City, Jiangxi Province;

 

J.                    Shenzhen Daoge No.21 Investment Partnership (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 91440300MA5EQ0XL2X. Its registered address is at Room 3401-3402, Zhongzhou Building, No. 3088 Jintian Road, Futian Street, Futian District, Shenzhen;

 

K.                Zhihan (Shanghai) Investment Center (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 91310115MA1K39UL09. Its registered address is at 26th Floor, No. 828-838 Zhangyang Road, China (Shanghai) Free Trade Pilot Zone;

 

L.                 Xinyu Meilianxing Investment Management Center (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 91360503332948949D and its registered address is Yangtiangang International Eco-City in Xiannvhu District, Xinyu City, Jiangxi Province;

 

M.             Xinyu Meilianchou Investment Management Center (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 913605033329489060, and its registered address is at Yangtiangang International Eco-city in Xiannvhu District, Xinyu City, Jiangxi Province;

 

N.                Shenzhen Daoge No.11 Education Investment Partnership (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 91440300MA5EDGNC8Y. Its registered address is at c/o Shenzhen Qianhai Commerce Secretariat Co., Ltd., Room 201, Building A, No. 1 Qianwan First Road, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen;

 

O.                Hangzhou Muhua Equity Investment Fund Partnership (Limited Partnership), a partnership legally established and existing under Chinese law, with the unified social credit code of 91330183MA28L6U93N. Its registered address is at No. 2 Gongwang Road, Huanggongwang Village, Dongzhou Street, Fuyang District, Hangzhou, Zhejiang Province;

 

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P.                  Shenzhen Daoge Growth No. 3 Investment Fund Partnership (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 914403003594989844. Its registered address is at c/o Shenzhen Qianhai Commerce Secretariat Co., Ltd., Room 201, Building A, No. 1 Qianwan First Road, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen;

 

Q.                Shenzhen Daoge Growth No.6 Investment Fund Partnership (Limited Partnership), a partnership legally established and existing under the Chinese law, with the unified social credit code of 91440300MA5DB1LN2W. Its registered address is at 49F, Fortune Building, Fuhua Three No. 88 Futian Street, Futian District, Shenzhen;

 

R.                Shenzhen Daoge Growth No. 5 Investment Fund Partnership (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 91440300MA5DAL4T2P. Its registered address is at Room 3401-3402, Zhongzhou Building, No. 3088 Jintian Road, Futian Street, Futian District, Shenzhen.

 

(the aforementioned paragraphs I to R, hereinafter collectively referred to as “Likeshuo Education Institution Shareholders”)

 

(the aforementioned paragraphs B to R, hereinafter collectively referred to as “Likeshuo Education Shareholders”)

 

S.                  The Domestic Affiliates refers to Shenzhen Likeshuo Education Co., Ltd. and its affiliated holding subsidiaries (see Annex I of this Agreement for details, one or all of the aforementioned civil entities are referred to as “Domestic Affiliates”).

 

In this agreement, WFOE, Domestic Affiliates, and Likeshuo Education Shareholders are collectively referred to as the “Parties”, or individually referred to as a “Party”.

 

WHEREAS:

 

1.                  Likeshuo Education Shareholders directly and/or indirectly hold the equity of the Domestic Affiliates, including (a) Likeshuo Education Shareholders hold 100% equity of the Likeshuo Education; (b) Likeshuo Education holds 80% equity of Shenzhen Qianhai Meten Technology Co., Ltd.; (c) Shenzhen Qianhai Meten Technology Co., Ltd. holds 83% equity of Shenzhen Zhangying Information Technology Co., Ltd..

 

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2.                  Likeshuo Education Shareholders intend to grant WFOE or its designated wholly-owned subsidiaries an irrevocable exclusive call option right to purchase  all or part of the equity directly or indirectly held by Likeshuo Education Shareholders from time to time in Domestic Affiliates (hereinafter the “Equity Purchase Rights” “), and WFOE intends to accept such Equity Purchase Right granted by Likeshuo Education shareholders.

 

Therefore, after friendly negotiation, the Parties agree on the exclusive call option as follows:

 

1. Definition and Interpretation

 

Unless otherwise stated or required, the following terms shall have the following meanings when used in this Agreement:

 

“Proposed Listed Company” means Meten International Education Group, a limited liability company incorporated under the laws of the Cayman Islands on July 10, 2018.

 

“Likeshuo Education” means Shenzhen Likeshuo Education Co., Ltd., a company incorporated under the laws of PRC on October 26, 2018.

 

“Equity Pledge Agreement” means the Equity Pledge Agreement entered into among Likeshuo Education Shareholders, WFOE and Likeshuo Education when signing this Agreement, to guarantee the contractual obligations of the Domestic Affiliates and Likeshuo Educational Shareholders under the Cooperation Agreements.

 

“Shareholder Rights Entrustment Agreement” means the Shareholder Rights Entrustment Agreement entered into among Likeshuo Education Shareholders, WFOE and Likeshuo Education when signing this Agreement.

 

“Cooperation Agreements” means the Business Cooperation Agreement, the Exclusive Technical Service and Management Consulting Agreement, the Exclusive Call Option Agreement, the Equity Pledge Agreement, the Shareholder Rights Entrustment Agreement and Shareholders’ Powers of Attorney signed by certain Parties of this Agreement, including the amendments to the above agreements, and other agreements, contracts or instruments signed or issued from time to time by one or more Parties to ensure the fulfillment of the above agreements and signed or recognized by WFOE in writing.

 

“China” means the People’s Republic of China (for the purposes of this Agreement, excluding the Hong Kong Special Administrative Region, the Macao Special Administrative Region and Taiwan).

 

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“Assets” means all tangible and intangible assets directly or indirectly owned by the Domestic Affiliates, including but not limited to all fixed assets, current assets, capital interests of foreign investment, intellectual property rights, and all available benefits under all contracts and other benefits that should be obtained by the Domestic Affiliates.

 

2. Equity Transfer of Domestic Affiliates

 

1.              Grant rights

 

Pursuant to the terms and conditions stipulated in this Agreement, Likeshuo Education Shareholders irrevocably grant WFOE or its designated wholly-owned subsidiaries the exclusive all option in relation to the equity of Domestic Affiliates.  WFOE or its designated wholly-owned subsidiaries (hereinafter the “Domestic Affiliates Equity Purchaser”, such Domestic Affiliates Equity Purchaser may be one or more parties) has the right to decide in its sole discretion, in accordance with the terms and conditions of this agreement, to purchases all or part of the equities directly and/or indirectly held by Likeshuo Education Shareholders, from time to time, in Domestic Affiliates by one or multiple times, and pays the minimum price permitted by PRC laws and regulations to Likeshuo Education Shareholders and/or its designated entities.  The shareholders of Domestic Affiliates recorded in the articles of association confirm the waiver of their respective pre-emptive rights to the above-mentioned Domestic Affiliates equity transfer in accordance with the provisions of the PRC laws and regulations and the company’s articles of association, and irrevocably agree that Likeshuo Education Shareholders transfer the equity of Domestic Affiliates directly and/or indirectly held by them to Domestic Affiliates Equity Purchaser.

 

2.              Exercise procedure

 

In the case that the PRC laws and regulations allow Domestic Affiliates Equity Purchaser to hold all or part of the equities held by Likeshuo Education Shareholders in Domestic Affiliates, the WFOE may, at any time during the term of this Agreement, issue a notice to Likeshuo Education Shareholders or Domestic Affiliates (the “Domestic Affiliates Equity Transfer Notice”), which states that the equity shares of Domestic Affiliates purchased from Likeshuo Education Shareholders (the “Purchased Domestic Affiliates Equities”) and the identities of Domestic Affiliates Equity Purchaser, to exercise the right to purchase the equities of Domestic Affiliates.

 

Each time exercising the right to purchase the equities of Domestic Affiliates, Domestic Affiliates Equity Purchaser may, at its discretion, determine the proportion of the purchased equities of Domestic Affiliates purchased from Likeshuo Education Shareholders, but in the case that PRC laws and regulations permit other foreign or overseas entities designated by WFOE and/or the company to directly hold part or all of the equity of the Domestic Affiliates, and to engage in restricted/prohibited business such as online English training services through Domestic Affiliates, WFOE shall issue the Domestic Affiliates Equity Transfer Notice as soon as practical, and the amount of equities of Domestic Affiliates purchased by Domestic Affiliates Equity Purchaser from Likeshuo Education Shareholders shall not be lower than the maximum limit permitted by PRC law in relation to the equity of Domestic Affiliates held by other foreign or overseas entities designated by WFOE and/or the Proposed Listed Company.

 

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3.              Equity transfer of Domestic Affiliates

 

Each time the right to purchase the equities of Domestic Affiliates is exercised:

 

a)                 Likeshuo Education Shareholders and the direct equity holders of Domestic Affiliates shall sign an equity transfer agreement and other necessary legal documents for the equity transfer of Domestic Affiliates with Domestic Affiliates Equity Purchaser in accordance with the provisions of this Agreement and the Domestic Affiliates Equity Transfer Notice;

 

b)                 Likeshuo Education Shareholders and the direct equity holders of Domestic Affiliates shall prompt Domestic Affiliates to conduct financial liquidation in a timely manner in order to handle the legal procedures for the equity transfer of Domestic Affiliates (if applicable);

 

c)                  Likeshuo Education Shareholders and the direct equity holders of Domestic Affiliates shall prompt Domestic Affiliates to convene the shareholders’ meeting/make a shareholder decision in a timely manner, and approve the resolutions on the equity transfer of Domestic Affiliates and the revision of the articles of association of Domestic Affiliates;

 

d)                 Likeshuo Education Shareholders and the direct equity holders of Domestic Affiliates shall prompt Domestic Affiliates to promptly amend the articles of association to reflect the equity transfer of Domestic Affiliates;

 

e)                  Likeshuo Education Shareholders and the direct equity holders of Domestic Affiliates shall prompt Domestic Affiliates to apply to the competent authorities of industry and commerce, education and other government authorities for legal procedures of the approvals, registrations and/or filings related to the equity transfer of Domestic Affiliates;

 

f)                   Likeshuo Education Shareholders and the direct equity holders of Domestic Affiliates shall sign all further documents reasonably required by Domestic Affiliates Equity Purchaser at any time and take all further actions to make Domestic Affiliates Equity Purchaser become the legal owner of the equity of Domestic Affiliates without any encumbrances and other unfavorable claims and interests (excluding the rights restrictions imposed on the equity of Domestic Affiliates due to the Cooperation Agreements); and;

 

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g)                  Domestic Affiliates shall sign all further documents reasonably required by Domestic Affiliates Equity Purchaser at any time and take all further actions to make Domestic Affiliates Equity Purchaser become the legal owner of the equity of Domestic Affiliates without any encumbrances and other unfavorable claims and equities.

 

4.              Payment

 

Domestic Affiliates Equity Purchaser shall pay the equity purchase price to Likeshuo Education Shareholders and/or the direct holders of Domestic Affiliates in cash within seven (7) days from the date of the satisfaction of the following conditions or at other time designated by WFOE:

 

a)                 Domestic Affiliates Equity Purchaser receives all necessary or appropriate certifying documents of approvals and the completion of registrations and/or filings relating to the assignment of the equities of Domestic Affiliates;

 

b)                 All ownership documents (if any) relating to the transferred equities of Domestic Affiliates have been delivered to Domestic Affiliates Equity Purchaser;

 

c)                  When transferring the equities of Domestic Affiliates to Domestic Affiliates Equity Purchaser, all taxes and fees payable for the equity transfer of Domestic Affiliates shall be separately stipulated, except where the laws and regulations clearly stipulate that Domestic Affiliates Equity Purchaser shall bear;

 

d)                 All approvals, registrations and/or filings required for Domestic Affiliates Equity Purchaser to nominate a person to serve as a director and/or legal representative of Domestic Affiliates have been completed.

 

3. Covenants

 

1.              Covenants of Likeshuo Education Shareholders

 

Likeshuo Education Shareholders covenant the following to WFOE:

 

a)                 from the date of signing this Agreement, without the prior written consent of WFOE, the equities of Domestic Affiliates directly and/or indirectly held by it shall not be sold, transferred, assigned or otherwise disposed of; not set any encumbrances on the equities of Domestic Affiliates directly and/or indirectly held by it at any time from the date of signing this Agreement;

 

b)                 without the prior written consent of WFOE, not increase or decrease the registered capital of Domestic Affiliates or agree to increase or decrease the aforementioned registered capital;

 

c)                  without the prior written consent of WFOE, not agree or procure the separation of Domestic Affiliates or merge with other entities;

 

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d)                 without the prior written consent of WFOE, not dispose or procure the management of Domestic Affiliates to dispose of any assets of Domestic Affiliates, except Domestic Affiliates may prove that the relevant asset disposal is necessary for its daily business operations and the value of the assets involved in the individual transaction is not more than RMB 500,000;

 

e)                  without the prior written consent of WFOE, not terminate or procure the management of Domestic Affiliates to terminate any material agreement entered into by Domestic Affiliates, or enter into any other agreement that conflicts with the existing material agreements. The aforementioned “material agreements” refer to a single agreement with a total amount of more than RMB 500,000, or Cooperation Agreements and/or any agreements similar in nature or content to Cooperation Agreements;

 

f)                   without the prior written consent of WFOE, not procure Domestic Affiliates to enter into transactions that may materially affect the assets, liabilities, business operations, equity structure and other legal rights of Domestic Affiliates (excluding the transaction produced in the normal or daily business processes of Domestic Affiliates and the amount of such single transaction does not exceed RMB 500,000, or has been disclosed to WFOE and obtained the written consent of WFOE);

 

g)                  without the prior written consent of WFOE, not procure or agree Domestic Affiliates to announce the distribution of or actually distribute any distributable profits, or to agree to the foregoing distribution;

 

h)                 without the prior written consent of WFOE, not procure or agree Domestic Affiliates to amend its articles of association;

 

i)                     without the prior written consent of WFOE, not procure or agree to the lending or borrowing of loans by Domestic Affiliates, or to provide guarantees or other forms of security, or to assume any material obligations outside of normal business activities; the aforementioned “material obligations” refer to that any Domestic Affiliates is required to pay more than RMB 500,000, or restricts and/or obstructs Domestic Affiliates from fulfilling their obligations under Cooperation Agreements, or restricts and/or prohibits the financial and business operations of Domestic Affiliates, or any obligations that may cause changes in the equity structure of Domestic Affiliates;

 

j)                    do its best efforts to procure Domestic Affiliates to develop their business and guarantee the legal and compliance operations, and will not carry out any actions or omissions that may damage the assets, goodwill or affect the validity of business licenses of Domestic Affiliates;

 

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k)                 before transferring the equities of Domestic Affiliates to Domestic Affiliates Equity Purchaser, all the documents necessary for owning and maintaining the equities of Domestic Affiliates shall be signed without affecting the Shareholder Rights Entrustment Agreement;

 

l)                     in relation to the equity transfer of Domestic Affiliates to Domestic Affiliates Equity Purchaser, Likeshuo Education Shareholders and/or the direct holder of the equities of Domestic Affiliates shall sign all the required documents and take all necessary actions;

 

m)             if fulfillment of Domestic Affiliates’ obligations under this Agreement needs Likeshuo Education Shareholders take any action as the equity holder of Domestic Affiliates, Likeshuo Education Shareholders shall take all actions to cooperate with Domestic Affiliates in fulfilling the obligations stipulated in this Agreement;

 

n)                 within the authority as a direct and/or indirect shareholder of Domestic Affiliates, without prejudice to Cooperation Agreements, procure the directors appointed by them to exercise all their rights in Domestic Affiliates in accordance with the provisions of this Agreement, so that Domestic Affiliates may fulfill their obligations set out in this Agreement; if any director fails to exercise his rights as stated above, such director shall be immediately removed;

 

o)                 price compensation: Likeshuo Education Shareholders irrevocably promises that if WFOE or its designated Domestic Affiliates Equity Purchaser purchases all or part of the equities directly or indirectly held by Likeshuo Education Shareholders in Domestic Affiliates with consideration exceeding RMB 0 Yuan (capital: RMB Zero Yuan), the difference shall be compensated fully by Likeshuo Education Shareholders to WFOE or its designated entity, but the foregoing compensation amount must not exceed remaining amount of the equity purchase price actually received by the Likeshuo Education Shareholders after deducting all legally paid taxes and fees.

 

2.              Covenants of Domestic Affiliates

 

Domestic Affiliates covenant the following to WFOE:

 

a)                 without the prior written consent of WFOE, from the date of signing this Agreement, it will not sell, transfer, license or otherwise dispose of any assets, or allow any encumbrances on any assets at any time, except Domestic Affiliates may prove that the disposal of related assets or the encumbrance of assets are necessary for the daily business operations and the value of the assets involved in the individual transaction does not exceed RMB 500,000;

 

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b)                 not distribute profits to company shareholders in a direct or indirect manner;

 

c)                  operate the business of Domestic Affiliates in accordance with the Cooperation Agreements and the instructions of WFOE;

 

d)                 in order to maintain the ownership of the assets of Domestic Affiliates and to validate the transactions specified in this Agreement and Cooperation Agreements, all required or appropriate documents are signed from time to time;

 

e)                  without the prior written consent of WFOE, the articles of association of Domestic Affiliates shall not be supplemented, altered or modified in any form, except as otherwise provided in Cooperation Agreements;

 

f)                   maintaining the continued operation of Domestic Affiliates in accordance with good financial and commercial standards and practices, and conducting their business and handling related matters with care and efficiency;

 

g)                  without the prior written consent of WFOE, not pass or approve any resolutions concerning the Domestic Affiliates conducting other business, changing shareholders, liquidating or dissolving Domestic Affiliates;

 

h)                 except for the cases arising from the ordinary course of business and the total amount of individual debts does not exceed RMB 500,000, or the debts have been disclosed to WFOE and obtained its written consent, no debt will be generated, assumed or guaranteed;

 

i)                     without the prior written consent of WFOE, no lending or guarantee for any third party will be provided to any person (including any shareholder of Domestic Affiliates) E;

 

j)                    allow WFOE, Proposed Listed Company and/or its designated auditors, with reasonable notice, to audit the relevant accounting books and records of Domestic Affiliates and their subsidiaries and units at the main office of Domestic Affiliates, and to copy the required books and records to verify the income amount and the accuracy of the statements for any period. For this purpose, Domestic Affiliates agree to provide relevant information and materials concerning the operations, business, customers, finances, employees, etc. of Domestic Affiliates and their subsidiaries and units, and agree the Proposed Listed Company to disclose such information and materials required by the securities regulation of the place in which it intends to be listed;

 

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k)                 have an insurance that is of the insurance company recognized by WFOE and whose amount is the same as that Domestic Affiliates operating similar business in the same area and other enterprises or units possessing similar property or assets will invest;

 

l)                     without the prior written consent of WFOE, not merged or united with anyone;

 

m)             without the prior written consent of WFOE, not acquire or invest in anyone;

 

n)                 timely notify WFOE of any litigation, arbitration, administrative investigation or conduct that may substantially affect the assets, business or income of Domestic Affiliates;

 

o)                 at the request of Domestic Affiliates Equity Purchaser, pledge or mortgage assets (as applicable) to WFOE at any time, and for the purpose of setting and making such pledges or mortgages valid, sign all necessary documents and take all usual actions required for necessary registrations; and

 

p)                 not conduct or allow to conduct any behaviors or action that may adversely affect the interests of WFOE under this Agreement.

 

4. Representations and Warranties of Likeshuo Education Shareholders

 

Likeshuo Education Shareholders severally and not jointly represent and warrant the following to WFOE:

 

a)                 Likeshuo Education Shareholders include institution shareholders and individual shareholders, of which the institution shareholders are properly registered and legally existing under the laws of PRC with independent subject qualifications, and have full and independent legal status and legal capacity to sign, deliver and perform this Agreement; of which individual shareholders have full and independent capacity for civil rights and civil conduct, have complete and independent legal status and legal ability to sign, deliver and perform this Agreement, and can independently act as a litigation party ;

 

b)                 all reports, documents and information provided by Likeshuo Education Shareholders to WFOE prior to and after the entry into force of this Agreement, relating to the equity of Domestic Affiliates and all matters required by this Agreement are true, accurate and complete in all material aspects at the time of entry into force of this Agreement, without any falsehood, omission or serious misleading;

 

c)                  the debt situation of Likeshuo Education Shareholders disclosed to WFOE was true, complete and accurate;

 

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d)                 except for the burden/restriction of the rights of Domestic Affiliates and the rights restrictions imposed on the equity of Domestic Affiliates due to Cooperation Agreements that have been disclosed to WFOE, there is no other rights burdens/limitations of the equity of Domestic Affiliates directly and/or indirectly held by Likeshuo Education Shareholders;

 

e)                  this Agreement has been duly signed by Likeshuo Education Shareholders and constitutes a legal, valid and binding obligation to Likeshuo Education Shareholders;

 

f)                   it has full internal power and authority to enter into and deliver this Agreement and all other documents it shall sign relating to the transactions described in this Agreement, and have full authority to complete the transactions described in this Agreement;

 

g)                  except that has been disclosed to WFOE, there is no litigation, legal process or request in any court or arbitral tribunal to Likeshuo Education Shareholders or its assets that are pending or may constitute threats as far as known to Likeshuo Education Shareholders, and there is no litigation, legal process or request in any governmental institution or administrative agency to Likeshuo Education Shareholders or its assets that are pending or may constitute threats known to Likeshuo Education Shareholders, which may have an adverse effect on the economic status of Likeshuo Education Shareholders or its abilities to perform its obligations under this Agreement; and

 

h)                 the signing and performance of this Agreement will not violate the currently valid laws, regulations or rules applicable to it, will not violate any court judgment or arbitral award, any administrative agency’s decision, approval, permission or any other agreement that it is a party and has binding effect on the equity of its subsidiaries and unit or other assets held by it, and will not result in any suspension, revocation, confiscation or failure to renew after expiration of the applicable approval and license of the government departments.

 

5. Representations and Warranties of Domestic Affiliates

 

Domestic Affiliates severally and not jointly represent and warrant the following to WFOE:

 

a)                 Domestic Affiliates are companies that are properly registered and legally existing under the laws of PRC and have complete and independent legal personality; they have full and independent legal status and legal capacity to sign, deliver and perform this Agreement, and can independently act as a litigation party;

 

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b)                 all reports, documents and information provided by Domestic Affiliates to WFOE prior to and after the entry into force of this Agreement, relating to the equity and all matters required by this Agreement shall be true, accurate and complete in all material aspects at the time of the entry into force of this Agreement, without any falsehoods, omissions or serious misleading;

 

c)                  the debt situation of Domestic Affiliates disclosed by it to WFOE is true, complete and accurate;

 

d)                 except for the rights restrictions set on the equity of Domestic Affiliates due to Cooperation Agreements, there are no other encumbrances or rights restrictions on the assets and other rights held by Domestic Affiliates;

 

e)                  this Agreement shall be duly signed by Domestic Affiliates and constitute a legal, valid and binding obligation to Domestic Affiliates;

 

f)                   it has full internal power and authority of Domestic Affiliates to enter into and deliver this Agreement and all other documents it shall sign relating to the transactions described in this Agreement, and have full authority to complete the transactions described in this Agreement;

 

g)                  except that has been disclosed to WFOE, there is no litigation, legal process or request in any court or arbitral tribunal to Domestic Affiliates or its assets that are pending or may constitute threats as far as known to Domestic Affiliates, and there is no litigation, legal process or request in any governmental institution or administrative agency to Domestic Affiliates or its assets that are pending or may constitute threats known to Domestic Affiliates, which may have an adverse effect on the economic status of Domestic Affiliates or its abilities to perform its obligations under this Agreement; and

 

h)                 the signing and performance of this Agreement will not violate the currently valid laws, regulations or rules applicable to it, will not violate any court judgment or arbitral award, any administrative agency’s decision, approval, permission or any other agreement that it is a party and has binding effect on the assets held by it, and will not result in any suspension, revocation, confiscation or failure to renew after expiration of the applicable approval and license of the government departments.

 

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6. Representations and Warrants of WFOE

 

WFOE represents and warrants the following to Likeshuo Education Shareholders and Domestic Affiliates:

 

a)                 WFOE is a wholly foreign-owned enterprise that is properly registered and legally existing under the laws of PRC and has independent legal personality. It has full and independent legal status and legal capacity to sign, deliver and perform this Agreement, and can independently act as a litigation party;

 

b)                 this Agreement shall be duly signed by WFOE and constitute a legal, valid and binding obligation to WFOE;

 

c)                  it has full internal power and authority of WFOE to enter into and deliver this Agreement and all other documents it shall sign relating to the transactions described in this Agreement, and have full authority to complete the transactions described in this Agreement;

 

d)                 there is no litigation, legal process or request in any court or arbitral tribunal to WFOE or its assets that are pending or may constitute threats as far as known to WFOE, and there is no litigation, legal process or request in any governmental institution or administrative agency to WFOE or its assets that are pending or may constitute threats known to WFOE, which may have an adverse effect on the economic status of WFOE or its abilities to perform its obligations under this Agreement; and

 

e)                  the signing and performance of this Agreement will not violate the currently valid laws, regulations or rules applicable to it, will not violate any court judgment or arbitral award, any administrative agency’s decision, approval, permission or any other agreement that it is a party and has binding effect on the assets held by it, and will not result in any suspension, revocation, confiscation or failure to renew after expiration of the applicable approval and license of the government departments.

 

7. Damage Liability and Remedy Measures

 

1.              Enforcement

 

The parties unanimously agree that WFOE shall have the right to submit the relevant breach of Likeshuo Education Shareholders or Domestic Affiliates to the arbitral institution for ruling and request enforcement.  Both Likeshuo Education Shareholders and Domestic Affiliates have acknowledged and agreed that violations of this Agreement will cause irreparable damage to WFOE, and monetary damages cannot compensate for the loss of WFOE.

 

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2.              No right of recourse to Domestic Affiliates

 

If, Likeshuo Education Shareholders violates this Agreement which result in certain actions taken by Domestic Affiliates or occurred, and such actions of Domestic Affiliates cause WFOE to exercise any of its rights under this Agreement or claim for damage, Likeshuo Education Shareholders shall have no right to seek for compensation from Domestic Affiliates for the losses suffered thereby.

 

8. Term

 

1.              This Agreement shall become effective upon the formal signing of this Agreement by the Parties.

 

2.              This Agreement shall remain in force during the period of operation of Domestic Affiliates and the period of renewal according to the provisions of PRC law, and shall be automatically terminated once WFOE and/or the civil entity designated by Proposed Listed Company have purchased all equities of Domestic Affiliates directly or indirectly held by Likeshuo Education Shareholders. WFOE may terminate this Agreement unilaterally after thirty (30) days notice. Unless otherwise stipulated by law, in any case, neither Likeshuo Education Shareholders nor Domestic Affiliates shall have the right to terminate or dissolve this Agreement unilaterally.

 

3.              In order to avoid any doubt, according to this Agreement, if PRC laws and regulations permit WFOE and/or other foreign or overseas entities designated by Proposed Listed Company to directly hold part or all of the equities of Domestic Affiliates, and conduct online English training and other restricted or prohibited business through Domestic Affiliates, WFOE shall issue Domestic Affiliates Equity Transfer Notice as soon as practical, and the amount of (direct or indirect) equities of Domestic Affiliates purchased by Domestic Affiliates Equity Purchaser from Likeshuo Education Shareholders shall not be lower than the maximum limit permitted by PRC law in relation to the equity of Domestic Affiliates held by other foreign or overseas entities designated by WFOE and/or the Proposed Listed Company. This Agreement shall automatically terminate when Domestic Affiliates Equity Purchaser have purchased all equities of Domestic Affiliates directly or indirectly held by Likeshuo Education Shareholders.

 

16

 

9. Confidentiality

 

1.              The Parties acknowledge and determine that any oral or written information exchanged with respect to this Agreement is confidential.  All parties shall keep all such information confidential and shall not disclose any relevant information to any third party without the prior written consent of other parties, except in the following cases:

 

a)                 The public is aware of or will be aware of such information (not disclosed to the public by the recipients without permission);

 

b)                 Information required to be disclosed in accordance with the applicable laws and regulations, the rules and regulations of stock exchange, or the requirements of the regulatory authority; or

 

c)                  The information required to be disclosed by any party to its legal or financial adviser for the transactions described in this Agreement, and the legal or financial adviser is also subject to confidentiality obligations similar to these terms.

 

2.              The leak of confidential information by the staff or the institution it employs shall be deemed to be the leak of confidential information of such Party, and such Party shall be liable for breach in accordance with this Agreement.

 

3.              The Parties agree that Article 9 of this Agreement will continue to be effective irrespective of whether this Agreement is invalid, altered, dissolved, terminated or not operational.

 

10. Force Majeure

 

1.              If the liability of the Parties under this Agreement shall not be fulfilled due to the event of force majeure, and the liabilities under this Agreement will be waived within the scope of force majeure.  For the purposes of this Agreement, force majeure events include only natural disasters, storms, tornadoes and other weather conditions, strikes, closures/shutdowns or other industry issues, wars, riots, conspiracy, enemy acts, terrorist acts or violent acts of criminal organizations, blockades, serious illnesses or plagues, earthquakes or other crustal movements, floods and other natural disasters, bomb explosions or other explosions, fires, accidents, or government actions that result in failure to comply with this Agreement.

 

2.              In the event of a force majeure event, the Party affected by the force majeure event shall endeavor to reduce and remove the effects of the force majeure event and assume the responsibility of performing the delayed and blocked obligations under the Agreement.  After the event of force majeure is lifted, the Parties agree to continue to perform this Agreement as far as possible.

 

3.              In the event of a force majeure event that may result in delays, prevention or threats to delay or prevent the performance of this Agreement, the Parties shall notify the other Parties in writing and provide all relevant information.

 

17

 

11. Changed Circumstances

 

1.              As supplement and without contravention of other terms of Cooperation Agreements, if at any time, due to the enactment or revision of any PRC laws, regulations or rules, or due to the amendment of the interpretation or application of such laws, regulations or rules, or due to changes in the registration process, that WFOE believes that the maintenance of this Agreement in force and/or the acceptance of the right to purchase equity of Domestic Affiliates granted by Likeshuo Education Shareholder in the manner stipulated in this Agreement become illegal or violate such laws, rules and regulations, Likeshuo Education Shareholders and Domestic Affiliates shall immediately, in accordance with WFOE’s written instructions and the reasonable requirements of WFOE, take the action and/or sign any agreement or other document, in order to:

 

a)                 keep this Agreement valid;

b)                 exercise the right to purchase equities of Domestic Affiliates in the manner prescribed in this Agreement; and/or

c)                  fulfill the intent and purpose of this Agreement by the way prescribed in this Agreement or by other means.

 

12. Miscellaneous

 

1.              Likeshuo Education Shareholders and Domestic Affiliates agree that WFOE can transfer its rights and obligations under this Agreement to its designated party after WFOE’s written notice Likeshuo Education Shareholders and Domestic Affiliates; but without the prior written consent of WFOE, Likeshuo Education Shareholders or Domestic Affiliates may not transfer its rights, obligations or liabilities under this Agreement to any third party.  The successor or permitted assignee of Likeshuo Education Shareholders and Domestic Affiliates (if any) shall continue to perform all the obligations of Likeshuo Education Shareholders and Domestic Affiliates under this Agreement.

 

2.              For the avoidance of doubt, any representation, warranty and covenant made by each Likeshuo Education Shareholders under this Agreement shall be deemed to be made separately, and Likeshuo Education Shareholders shall not bear joint liability for the foregoing representations, warranties, covenants or any obligations under this Agreement.  Further, the obligation to “procure”, “ensure”, “guarantee” or “agree” Likeshuo Education to act or omit to act assumed by Likeshuo Education Shareholders under this Agreement, shall refer to such shareholder to exercise its shareholder right based on its respective shareholding ratios and in accordance with the articles of association or other agreements of Likeshuo Education or other Domestic Affiliates, or to exercise voting rights at the shareholders’ meeting to support such acts or omissions, or through the delegated or appointed directors or senior management personnel to support such acts or omissions in accordance with articles of associations or other agreements.  No shareholder shall assume any guarantee or security responsibility for the consequences of the act or omission of Likeshuo Education or other Domestic Affiliates beyond its shareholder right.

 

18

 

3.              The conclusion, validity, interpretation, performance, modification and termination of this Agreement and the resolution of disputes shall be in accordance with PRC laws.

 

4.              Any dispute or claim arising out of or in connection with this Agreement or the performance, interpretation, breach, termination or validity of this Agreement shall be settled through friendly negotiation.  The negotiation shall begin after the written negotiation request for a specific statement of the dispute or claim has been sent to the other Party.

 

5.              If the dispute cannot be resolved within thirty (30) days of the delivery of the above notice, either party shall have the right to submit the dispute to arbitration for settlement.  The parties agree to submit the dispute to the Shenzhen International Court of Arbitration in Shenzhen for an arbitral award in accordance with the arbitration rules in force at that time. The arbitral award is final and is legally binding on all parties.

 

6.              During the arbitration period, in addition to the disputes submitted to the arbitration, the Parties to this Agreement shall continue to perform their other obligations under this Agreement.

 

7.              Any rights, powers and remedies given to the Parties under any provision of this Agreement shall not exclude any other rights, powers or remedies that the Party may have in accordance with the law and other terms of this Agreement. The exercise of one party of its rights, powers and remedies shall not exclude the exercise of other rights, powers and remedies available to such Party.

 

8.              The failure to exercise or delay the exercise of any of its rights, powers and remedies under this Agreement or the law a Party shall not result in the waiver of such rights. The waiver of any single or part of the rights of such Party shall not exclude the Party from exercise of such rights in other ways and the exercise of other rights of such party.

 

19

 

9.              Each of the terms of this Agreement may be divided and independent of each other term. If at any time any one or more of the terms of this Agreement become invalid, illegal or unenforceable, the validity, legality and enforceability of other provisions of this Agreement shall not affected.

 

10.       Revision of the Agreement

 

a)                 Through negotiations among the Parties and approved by the shareholder (or shareholders’ meeting) of WFOE, the Parties may modify or supplement this Agreement and take all necessary steps and actions, and bear the corresponding expenses, so that any modification or supplement can be legally valid; and/or

 

b)                 If [New York Stock Exchange] (hereinafter referred to as “[NYSE]”) or other regulatory authorities make any amendments to this Agreement, or any relevant rules, regulations or related requirements of [NYSE] produce any changes related to this Agreement, the Parties shall revise this Agreement accordingly.

 

11.       This agreement is drafted in Chinese language in twenty-one (21) counterparts, each of which shall be held each Party to this Agreement and has the same legal effect.

 

(Signature Page Follows)

 

20

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Zhuhai   Likeshuo Education Technology Co., Ltd. (seal)
    	
 
    
	
 
    	
 
    
	
Legal   representative/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Kang Zhou
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Shenzhen Likeshuo Education Co., Ltd. (seal)
    	
 
    
	
 
    	
 
    
	
Legal   representative/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Jishuang Zhao
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Jishuang Zhao
    	
 
    
	
 
    	
 
    
	
ID number: []
    	
 
    
	
 
    	
 
    
	
/s/ Jishuang Zhao
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Siguang Peng
    	
 
    
	
 
    	
 
    
	
ID number: []
    	
 
    
	
 
    	
 
    
	
/s/ Siguang Peng
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Yupeng Guo
    	
 
    
	
 
    	
 
    
	
ID number: []
    	
 
    
	
 
    	
 
    
	
/s/ Yupeng Guo
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Yun   Feng
    	
 
    
	
 
    	
 
    
	
ID number: []
    	
 
    
	
 
    	
 
    
	
/s/ Yun Feng
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Jun   Yao
    	
 
    
	
 
    	
 
    
	
ID number: []
    	
 
    
	
 
    	
 
    
	
/s/ Jun Yao
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Tong   Zeng
    	
 
    
	
 
    	
 
    
	
ID number: []
    	
 
    
	
 
    	
 
    
	
/s/ Tong Zeng
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Yongchao   Chen
    	
 
    
	
 
    	
 
    
	
ID number: []
    	
 
    
	
 
    	
 
    
	
/s/ Yongchao Chen
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Xinyu Meilianzhong Investment Management Center   (Limited Partnership) (seal)
    
	
 
    	
 
    
	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Siqi Huang
    	
 
    

 

	
Xinyu Meilianxing Investment Management Center   (Limited Partnership) (seal)
    
	
 
    	
 
    
	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Siqi Huang
    	
 
    

 

	
Xinyu Meilianchou Investment Management Center   (Limited Partnership) (seal)
    
	
 
    	
 
    
	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Siqi Huang
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Shenzhen Daoge No. 21 Investment Partnership   (Limited Partnership) (seal)
    
	
 
    	
 
    
	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Chenyang Xu
    	
 
    
	
 
    	
 
    
	
Shenzhen Daoge No. 11 Education Investment   Partnership (Limited Partnership) (seal)
    
	
 
    	
 
    
	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Chenyang Xu
    	
 
    
	
 
    	
 
    
	
Shenzhen Daoge Development No. 3 Investment Fund   Partnership (Limited Partnership) (seal)
    
	
 
    	
 
    
	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Chenyang Xu
    	
 
    
	
 
    	
 
    
	
Shenzhen Daoge Development No. 6 Investment Fund   Partnership (Limited Partnership) (seal)
    
	
 
    	
 
    
	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Chenyang Xu
    	
 
    
	
 
    	
 
    
	
Shenzhen Daoge Development No. 5 Investment Fund   Partnership (Limited Partnership) (seal)
    
	
 
    	
 
    
	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Chenyang Xu
    	
 
    

 

 

( Signature page of the Exclusive Call Option Agreement)

 

 

	
Zhihan (Shanghai) Investment Center (Limited   Partnership) (seal)
    
	
 
    	
 
    
	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Junbao Shan
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Hangzhou Muhua Equity Investment Fund Partnership   (Limited Partnership) (seal)
    
	
 
    	
 
    
	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Shu Zhang
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Shenzhen   Qianhai Meten Technology Co., Ltd. (seal)
    	
 
    
	
 
    	
 
    
	
Signature of legal   representative/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Jishuang Zhao
    	
 
    

 

 

(Signature page of the Exclusive Call Option Agreement)

 

 

	
Shenzhen Zhangying Information Technology   Co., Ltd. (seal)
    
	
 
    	
 
    
	
Signature of legal   representative/authorized representative:
    	
 
    
	
 
    	
 
    
	
/s/ Ruicong Huang
    	
 
    

 

 

Annex I: Domestic Affiliates

 

1.                  Shenzhen Likeshuo Education Co., Ltd.

2.                  Shenzhen Qianhai Meten Technology Co., Ltd.

3.                  Shenzhen Zhangying Information Technology Co., Ltd.

 

 

Annex II: Likeshuo Education Shareholders

 

1.                    Jishuang Zhao

2.                    Siguang Peng

3.                    Yupeng Guo

4.                    Yun Feng

5.                    Jun Yao

6.                    Tong Zeng

7.                    Yongchao Chen

8.                    Xinyu Meilianzhong Investment Management Center (Limited Partnership)

9.                    Xinyu Meilianxing Investment Management Center (Limited Partnership)

10.             Xinyu Meilianchou Investment Management Center (Limited Partnership)

11.             Shenzhen Daoge No.21 Investment Partnership (Limited Partnership)

12.             Shenzhen Daoge No.11 Education Investment Partnership (Limited Partnership)

13.             Shenzhen Daoge Growth No. 3 Investment Fund Partnership (Limited Partnership)

14.             Shenzhen Daoge Growth No. 6 Investment Fund Partnership (Limited Partnership)

15.             Shenzhen Daoge Growth No. 5 Investment Fund Partnership (Limited Partnership)

16.             Zhihan (Shanghai) Investment Center (Limited Partnership)

17.             Hangzhou Muhua Equity Investment Fund Partnership (Limited Partnership)Exhibit 10.11

 

Equity Pledge Agreement

 

Zhuhai Meizhilian Education Technology Co., Ltd.

 

amongst

 

Shenzhen Meten International Education Co., Ltd.

 

and

 

The Pledgors as shown in Annex I

 

November 23, 2018

 

 

Table of Contents

 

	
1. Definition and   Interpretation
    	
5
    
	
2. Equity Pledge
    	
6
    
	
3. Release of Pledge
    	
8
    
	
4. Disposal of the   Pledged Equity
    	
8
    
	
5. Fees and Expenses
    	
10
    
	
6. Sustainability and   No Waiver
    	
10
    
	
7. Representations and   Warrants of the Pledgors
    	
10
    
	
8. Representations and   Warrants of Meten Education
    	
12
    
	
9. Covenants of the   Pledgors
    	
13
    
	
10. Covenants of Meten   Education
    	
16
    
	
11. Changed   Circumstances
    	
17
    
	
12. Term
    	
17
    
	
13. Confidentiality
    	
18
    
	
14. Force Majeure
    	
18
    
	
15. Miscellaneous
    	
19
    
	
Annex 1: Pledgors
    	
14
    

 

1

 

This Equity Pledge Agreement (hereinafter referred to this “Agreement”) was entered into by the following Parties on November 23, 2018:

 

A.                Pledgor 1: Jishuang Zhao, a Chinese citizen whose ID number is [ ], and the residential address is at Room 16D, Building 1, Jinhaiwan Garden, Furong Road, Futian District, Shenzhen, Guangdong Province;

 

B.                Pledgor 2: Siguang Peng, a Chinese citizen whose ID number is [ ], and the residential address is at 17D, Building 1, Golden Bay Garden, Furong Road, Futian District, Shenzhen;

 

C.                Pledgor 3: Yupeng Guo, a Chinese citizen whose ID number is [ ], and the residential address is at A-2, 3rd Floor, Times Fortune Building, No. 88 Fuhua Three Road, Futian District, Shenzhen, Guangdong Province;

 

D.                Pledgor 4: Yun Feng, a Chinese citizen whose ID number is [ ], and the residential address is at Room 504, No. 29, Gexin Road, Baoshan District, Shanghai;

 

E.                 Pledgor 5: Jun Yao, a Chinese citizen whose ID number is [ ], and the residential address is at 17P, Jinzhong Building, Nanshan District, Shenzhen, Guangdong Province;

 

F.                  Pledgor 6: Tong Zeng, a Chinese citizen whose ID number is [ ], and the residential address is at 2-603, Building 3, No. 3110 Renmin North Road, Luohu District, Shenzhen;

 

G.                Pledgor 7: Yongchao Chen, a Chinese citizen whose ID number is [ ], and the residential address is at 6D, Building 27, Gang Zhong Lv Garden, No. 21 Nongyuan Road, Futian District, Shenzhen, Guangdong Province;

 

H.               Pledge 8: Xinyu Meilianzhong Investment Management Center (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 913605033329529727. Its registered address is at Yangtiangang International Eco-City in Xiannvhu District, Xinyu City, Jiangxi Province;

 

I.                    Pledgor 9: Shenzhen Daoge No.21 Investment Partnership (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 91440300MA5EQ0XL2X. Its registered address is at Room 3401-3402, Zhongzhou Building, No. 3088 Jintian Road, Futian Street, Futian District, Shenzhen;

 

 

2

 

J.                    Pledgor 10: Zhihan (Shanghai) Investment Center (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 91310115MA1K39UL09. Its registered address is at 26th Floor, No. 828-838 Zhangyang Road, China (Shanghai) Free Trade Pilot Zone;

 

K.                Pledgor 11: Xinyu Meilianxing Investment Management Center (Limited Partnership) , a partnership legally established and existing under the laws of China, with the unified social credit code of 91360503332948949D and its registered address is Yangtiangang International Eco-City in Xiannvhu District, Xinyu City, Jiangxi Province;

 

L.                 Pledgor 12: Xinyu Meilianchou Investment Management Center (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 913605033329489060, and its registered address is at Yangtiangang International Eco-city in Xiannvhu District, Xinyu City, Jiangxi Province;

 

M.             Pledgor 13: Shenzhen Daoge No.11 Education Investment Partnership (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 91440300MA5EDGNC8Y. Its registered address is at c/o Shenzhen Qianhai Commerce Secretariat Co., Ltd., Room 201, Building A, No. 1 Qianwan First Road, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen;

 

N.                Pledgor 14: Hangzhou Muhua Equity Investment Fund Partnership (Limited Partnership), a partnership legally established and existing under Chinese law, with the unified social credit code of 91330183MA28L6U93N. Its registered address is at No. 2 Gongwang Road, Huanggongwang Village, Dongzhou Street, Fuyang District, Hangzhou, Zhejiang Province;

 

O.                Pledgor 15: Shenzhen Daoge Growth No. 3 Investment Fund Partnership (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 914403003594989844. Its registered address is at c/o Shenzhen Qianhai Commerce Secretariat Co., Ltd., Room 201, Building A, No. 1 Qianwan First Road, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen;

 

P.                  Pledgor 16: Shenzhen Daoge Growth No.6 Investment Fund Partnership (Limited Partnership), a partnership legally established and existing under the Chinese law, with the unified social credit code of 91440300MA5DB1LN2W. Its registered address is at 49F, Fortune Building, Fuhua Three No. 88 Futian Street, Futian District, Shenzhen;

 

3

 

Q.                Pledgor 17: Shenzhen Daoge Growth No. 5 Investment Fund Partnership (Limited Partnership), a partnership legally established and existing under the laws of China, with the unified social credit code of 91440300MA5DAL4T2P. Its registered address is at Room 3401-3402, Zhongzhou Building, No. 3088 Jintian Road, Futian Street, Futian District, Shenzhen;

 

(the above items A to Q are collectively referred to as “Pledgors” or “Meten Education Shareholders”)

 

R.                Zhuhai Meizhilian Education Technology Co., Ltd., a wholly foreign-owned enterprise legally established and existing under the laws of China, has a unified social credit code of 91440400MA52A269XU. Its registered address is at Room 105 (59220 (concentrated office area)), No. 6, Baohua Road, Hengqin New District, Zhuhai (hereinafter referred to as the “Pledgee” or “WFOE”);

 

S.                  Shenzhen Meten International Education Co., Ltd., a limited liability company legally established and existing under the laws of PRC, with the unified social credit code of 914403007874523171; the registered address is Floor 1-4 of Tianjian Natural Residence Commercial Center, Xiangmei Road, Lianhua Street, Futian District, Shenzhen (hereinafter referred to as “Meten Education” or “Target Company”).

 

Each of the above parties is referred to as a “Party” and all parties are collectively referred to as the “Parties”.

 

WHEREAS:

 

1.                  The Pledgors are the registered shareholders who hold 100% of the equities of Meten Education (corresponding to the registered capital of RMB 24 million).

 

2.                  According to the provisions of the Cooperation Agreements, the Pledgors and the Domestic Affiliates (as defined below) that directly and/or indirectly hold the equities shall pay the management and consulting services fees, technical service fees and other fees and perform relevant obligations to the Pledgee according to the relevant agreements.

 

3.                  As a guaranty for the  performance of the Contractual Obligations (as defined below) by the Domestic Affiliates and the Pledger and the settlement of the Secured Debt (as defined below), the Pledgors unconditionally and irrevocably agree to pledge all equities of the Meten Education held by the Pledgors to the Pledgee and assign the priority for compensation with respect to the pledge equity to the Pledgee, and Meten Education also agrees to such equity pledge arrangements.

 

4

 

Therefore, after friendly negotiation, the Parties hereby agree as follows:

 

1. Definition and Interpretation

 

“Proposed Listed Company” means Meten International Education Group, a limited liability company incorporated under the laws of the Cayman Islands on July 10, 2018.

 

“Meten Education” means Shenzhen Meten International Education Co., Ltd., a company incorporated under the laws of PRC on April 3, 2006.

 

“Domestic Affiliates” means Meten Education and its controlled limited liability companies and private non-enterprise legal entities (as shown in Annex I of the Business Cooperation Agreement).

 

“Business Cooperation Agreement” means the Business Cooperation Agreement signed by the Pledgee, the Domestic Affiliates and the Meten Education Shareholders upon the date of this Agreement, as amended from time to time.

 

“Exclusive Call Option Agreement” means the Exclusive Call Option Agreement signed by the Pledgee, the Meten Education Shareholders and the Domestic Affiliates signed on the date of this Agreement, as amended from time to time.

 

“Exclusive Technical Service and Management Consulting Agreement” means the Exclusive Technical Service and Management Consulting Agreement signed by the Pledgee and the Domestic Affiliates on the date of this Agreement, as amended from time to time.

 

“Cooperation Agreements” means the Business Cooperation Agreement, the Exclusive Technical Service and Management Consulting Agreement, the Exclusive Call Option Agreement, the Equity Pledge Agreement, the Shareholder Rights Entrustment Agreement and Shareholders’ Powers of Attorney signed by certain Parties of this Agreement, including the amendments to the above agreements, and other agreements, contracts or instruments signed or issued from time to time by one or more Parties to ensure the fulfillment of the above agreements and signed or recognized by WFOE in writing..

 

“Contractual Obligations” means the obligations of the Pledgors and the Domestic Affiliates under the Cooperation Agreements (other than those dissolved or waived by other Parties).

 

5

 

“Breach Event” means any of the following events: the breach of any Contractual Obligations by the Pledgors or the Domestic Affiliates under Cooperation Agreements, and any representations and warranties or other information under the Cooperation Agreements presented by the Pledgors and the Domestic Affiliates are or are proved to be false or misleading in any material respect, or any agreement in the Cooperation Agreements become invalid or unfulfilled due to change of PRC laws and regulations, the promulgation of new PRC laws and regulations or any other reason, and the Parties fail to find an alternative arrangement.

 

“Secured Debts” means all direct, indirect, derivative losses and loss of predictable profits suffered by the Pledgee due to any Breach Event by the Pledgors or the Domestic Affiliates (unless otherwise agreed in the specific Cooperation Agreements), and all costs incurred by the Pledgee for compelling the Pledgor and the Domestic Affiliates to perform their Contractual Obligations. The amount of such loss is decided by the Pledgee under the conditions allowed by PRC laws and at its absolute discretion The Pledgors will be completely bound by it.

 

“Pledged Equity” means the share or equity of the Meten Education that is legally owned by the Pledgors at the time of the entry into force of this Agreement and will be pledged to the Pledgee as a guaranty for the fulfillment of the Contractual Obligations by the Domestic Affiliates and them, including but not limited to the current and future equity rights, interests, income, claims of all equities of the Meten Education, and the current or future receivable payment and indemnity relating to all of their equities of Meten Education, of the pledged person’s current and future education equity, the profits, dividends and other payments allocated by the Meten Education to the Pledgors, and the increased capital contribution and dividends as described in Section 2, paragraph 5 of this Agreement.

 

2. Equity Pledge

 

1.                  The Pledgors agree to pledge the equities of the Meten Education held by them to the Pledgee, and the proportions of the Pledged Equity are as follows:

 

6

 

	
No.
    	
 
    	
Pledgor
    	
 
    	
Proportion
   of the
   Pledged
   Equity
    	
 
    	
Pledgee
    	
 
    
	
1
    	
 
    	
Jishuang Zhao
    	
 
    	
27.3250
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
2
    	
 
    	
Siguang Peng
    	
 
    	
13.8080
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
3
    	
 
    	
Yupeng Guo
    	
 
    	
13.0829
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
4
    	
 
    	
Yun Feng
    	
 
    	
4.9146
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
5
    	
 
    	
Jun Yao
    	
 
    	
3.6719
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
6
    	
 
    	
Tong Zeng
    	
 
    	
3.1719
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
7
    	
 
    	
Yongchao Chen
    	
 
    	
0.5000
    	
%
    	
Zhuhai Meizhilian Education   Technology Co., Ltd.
    	
 
    
	
8
    	
 
    	
Xinyu Meilianzhong   Investment Management Center (Limited Partnership)
    	
 
    	
10.3918
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
9
    	
 
    	
Shenzhen Daoge No.21   Investment Partnership (Limited Partnership)
    	
 
    	
3.6358
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
10
    	
 
    	
Zhihan (Shanghai)   Investment Center (Limited Partnership)
    	
 
    	
4.0000
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
11
    	
 
    	
Xinyu Meilianxing   Investment Management Center (Limited Partnership)
    	
 
    	
3.9957
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
12
    	
 
    	
Xinyu Meilianchou   Investment Management Center (Limited Partnership)
    	
 
    	
3.5431
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
13
    	
 
    	
Shenzhen Daoge No.11   Education Investment Partnership (Limited Partnership)
    	
 
    	
3.0000
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
14
    	
 
    	
Hangzhou Muhua Equity   Investment Fund Partnership (Limited Partnership)
    	
 
    	
1.0000
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
15
    	
 
    	
Shenzhen Daoge   Development No. 3 Investment Fund Partnership (Limited Partnership)
    	
 
    	
1.5781
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
16
    	
 
    	
Shenzhen Daoge   Development No. 6 Investment Fund Partnership (Limited Partnership)
    	
 
    	
1.5090
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    
	
17
    	
 
    	
Shenzhen Daoge   Development No. 5 Investment Fund Partnership (Limited Partnership)
    	
 
    	
0.8722
    	
%
    	
Zhuhai Meizhilian   Education Technology Co., Ltd.
    	
 
    

 

2.                  The Pledgors unconditionally and irrevocably agree to pledge the Pledged Equity that they legally own and have the right to dispose of in accordance with the provisions of this Agreement to the Pledgee as a guaranty for performance of the Contractual Obligations and settlement of the Secured Debts. Meten Education agrees the Pledgors to pledge the Pledged Equity to the Pledgee and give the Pledgee the priority for compensation with respect to the Pledged Equity in accordance with the agreements in this Agreement.

 

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3.                  The Pledgors promise that they will be responsible for recording the equity pledge arrangement under this Agreement (hereinafter referred to as the “Equity Pledge”) in the register of shareholders of Meten Education when the conditions for pledge registration are met, and will register the Equity Pledge with the industrial and commercial registration authority of Meten Education as soon as possible when the pledge registration conditions are met and bear all relevant expenses. Meten Education promise that it will use its best efforts to cooperate with the Pledgors to complete the foregoing business registration.

 

4.                  If there is any possibility that the Pledged Equity may significantly reduce in value, which is enough to jeopardize the rights of the Pledgee, the Pledgee may at any time represent the Pledgors to auction or sell the Pledged Equity, and make an agreement with the Pledgors to use the payment of the auction or sale to pay for the Secured Debts in advance or to deposit the payment to the notary office where the Pledgee locates (where any costs incurred shall be borne by the Pledgors).

 

5.                  In the event of any Breach Event, the Pledgee has the right to dispose of the Pledged Equity in the manner prescribed in Section 4 of this Agreement.

 

6.                  With the prior written consent of the Pledgee, the Pledgors may increase the capital of Meten Education.  The amount of the increased capital contribution by the Pledgors to the Meten Education shall also be deemed as the Pledged Equity under this Agreement, and the registration of equity pledge shall be conducted as soon as possible.

 

3. Release of Pledge

 

1.                  After full and complete fulfillment of all the Contractual Obligations of the Pledgors and the Domestic Affiliates, the Pledgee shall, in accordance with the requirements of the Pledgors, release the pledge and cooperate with the Pledgors to cancel the Equity Pledge registration on the register of shareholders of the Meten Education and the Equity Pledge registration of to the industrial and commercial registration authority. The reasonable expenses arising from the release of pledge shall be borne by the Pledgors.

 

4. Disposal of the Pledged Equity

 

1.                  The Pledgors, the Meten Education and the Pledgee agree that in the event of any Breach Event, after giving written notice to the Pledgors, the Pledgee shall have the right to exercise all relief rights in accordance with the provisions of PRC laws and regulations and the Cooperation Agreements, and to deal with the Pledged Equity in one or more of the following ways:

 

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a)                 Subject to the conditions permitted by PRC laws and regulations, the Pledgors shall, at the request of the Pledgee, transfer to the Pledgee and/or any other entity or individual designated by it all or part of the Pledged Equity they hold in the Meten Education with the minimum price permitted by PRC laws; the Pledgors also irrevocably promise that if the Pledgee or its designated assignee purchases all or part of the equities of Meten Education with the consideration exceeding RMB Zero (0), the difference will be jointly borne by the Pledgors to fully compensate to the Pledgee or its designated entity, but the aforesaid compensation amount shall not exceed the remaining amount of the purchase consideration actually received by the Pledgors deducting all legally paid taxes and fees;

 

b)                 Sell the Pledged Equity through auction or discount, and preferentially compensated from the sales price; and

 

c)                  Under the premise of complying with laws and regulations, dispose the Pledged Equity in other means agreed by the Pledgors and the Pledgee.

 

2.                  The Pledgee has the right to appoint in writing its lawyer or other agent to exercise any and all of the foregoing rights, and the Pledgors or Meten Education shall not raise objections.

 

3.                  The Pledgee has the right to deduct the reasonable expenses incurred in exercising any or all of the foregoing rights from the amount it obtains from the exercise of its rights.

 

4.                  The amount obtained by the Pledgee in exercising its rights shall be dealt in the following order:

 

a)                 Pay all costs incurred by the disposition of the Pledged Equity and the Pledgee’s exercise of its rights (including payment of the fees of its lawyers and agents);

 

b)                 Pay the taxes and fees payable for the disposal of the Pledged Equity; and

 

c)                  Repay the Secured Debts to the Pledgee.

 

If there is any balance after deducting the foregoing payment, the Pledgee shall return the balance to the Pledgors.

 

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5.                  The Pledgee has the right to choose to exercise any default remedies that it enjoys at the same time or in succession. The Pledgee is not required to exercise other default remedies before exercising the auction or selling the Pledged Equity under this Agreement.

 

5. Fees and Expenses

 

1.                  All actual expenses incurred or related to the establishment, exercise and realization of the Equity Pledge under this Agreement, including but not limited to stamp duty, any other taxes and fees and legal fees, etc., shall be borne by the Pledgors.

 

6. Sustainability and No Waiver

 

1.                  The Equity Pledge established under this Agreement is a continuous guaranty and its validity shall remain in effect until the Contractual Obligations are fully fulfilled or the Secured Debts are fully settled. Meten Education and the Pledgors shall take all actions to ensure the registration of the Equity Pledges remains effective during this period.  The Pledgee’s waive of any default by the Pledgors or the delay of the Pledgee’s exercise of any of its rights under the Cooperation Agreements shall not affect the Pledgee’s rights to request the Pledgors or the Domestic Affiliates to exercise its rights at any time thereafter in accordance with the Cooperation Agreements. The right to enforce the Cooperation Agreements, or the rights of the Pledgee enjoyable due to the subsequent violation of the Cooperation Agreements by the Pledgors or the Domestic Affiliates.

 

7. Representations and Warrants of the Pledgors

 

The Pledgors severally and not jointly represent and warrant the following to Pledgee:

 

1.                  The Pledgor have full legal capacity to act, and can enter into this Agreement and assume legal obligations under this Agreement.

 

2.                  Meten Education is a limited liability company formally established and validly existing under the laws of PRC, and is officially registered with the competent administrative department for industry and commerce. The registered capital of Meten Education is RMB 24 million, and the Pledgors have paid the registered capital.

 

3.                  All reports, documents and information provided by the Pledgors to the Pledgee prior to the entry into force of this Agreement, relating to the Pledgors and all matters required by this Agreement, are true, accurate and complete in all material aspects matters at the time of the entry into force of this Agreement.

 

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4.                  All reports, documents and information provided by the Pledgors to the Pledgee after the entry into force of this Agreement, relating to the Pledgors and all matters required by this Agreement, are true, accurate and complete in all material aspects matters at the time of the entry into force of this Agreement.

 

5.                  At the time of the entry into force of this Agreement, the Pledgors are the sole legal owner of the Pledged Equity and have the right to dispose of the Pledged Equity. The ownership of the Pledged Equity is not subject to any dispute.

 

6.                  Except for the rights restrictions set under the Cooperation Agreements, there is no other security interest or encumbrances on the Pledged Equity.

 

7.                  The execution and fulfillment of this Agreement by the Pledgors and the holding of the equities of Meten Education by the Pledgors will not violate (i) any applicable laws, rules or judicial orders; (ii) any court judgment or arbitral award, any administrative decision, approval, permission; (iii) any other agreement under which each of the Pledgors is a party or that is binding on or establish mortgage on its assets, and will not result in the suspension, revocation, confiscation or expiration (with failure to renew) of any approval, license or qualification of the government department applicable to it.

 

8.                  The Pledged Equity may be legally pledged and transferred, and the Pledgors have sufficient rights and powers to pledge the Pledged Equity to the Pledgee in accordance with the provisions of this Agreement.

 

9.                  This Agreement shall be duly signed by the Pledgors and constitute legal, valid and binding obligations to the Pledgors.

 

10.           All consent, permission, waiver, authorization of any third party required to sign this Agreement and perform the Equity Pledge under this Agreement have been obtained or processed, and will remain fully effective during the term of this Agreement.

 

11.           The pledge under this Agreement constitutes a security interest with the priority for compensation with respect to the Pledged Equity.

 

12.           There is no litigation, legal process or request in any court or arbitral tribunal to the Pledgors or its assets, or the Pledged Equity that are pending or may constitute threats as far as known to the Pledgors, and there is no litigation, legal process or request in any governmental institution or administrative agency to the Pledgors or its assets, or the Pledged Equity that are pending or may constitute threats known to the Pledgors, which may have an adverse effect on the economic status of the Pledgors or their abilities to perform their obligations under this Agreement.

 

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13.           The Pledgors warrant to the Pledgee that the foregoing representations and warranties will be true, accurate and complete and will be completely complied with at any time and in any case before the Contractual Obligations are fully performed or the Secured Debts are fully settled.

 

8. Representations and Warrants of Meten Education

 

Meten Education represents and warrants to the Pledgee as follows:

 

1.                  Meten Education is a limited liability company incorporated and legally existing under the laws of the PRC with independent legal entity. It has full and independent legal status and legal capacity to sign, deliver and perform this Agreement, and can independently act as a litigation party.

 

2.                  All reports, documents and information provided by the Meten Education to the Pledgee prior to the entry into force of this Agreement, relating to the Pledged Equity and all matters required by this Agreement, are true, accurate and complete in all material aspects matters at the time of the entry into force of this Agreement.

 

3.                  All reports, documents and information provided by the Meten Education to the Pledgee after the entry into force of this Agreement, relating to the Pledged Equity and all matters required by this Agreement, are true, accurate and complete in all material aspects matters at the time of the entry into force of this Agreement.

 

4.                  This Agreement shall be duly signed by the Meten Education and constitute legal, valid and binding obligations to the Meten Education.

 

5.                  Meten Education has full internal power and authority to enter into and deliver this Agreement and all other documents it shall sign relating to the transactions described in this Agreement, and have full authority to complete the transactions described in this Agreement. All consent, permission, waiver, authorization of any third party required to sign this Agreement and perform the Equity Pledge under this Agreement have been obtained or processed, and will remain fully effective during the term of this Agreement.

 

6.                  The execution and performance of this Agreement by the Meten Education will not violate (i) any applicable laws, rules or judicial orders; (ii) any court judgment or arbitral award, any administrative agency’s decision, approval, permission; (iii) any other agreement under which each of the Pledgors is a party or that is binding on or establish mortgage on its assets, and will not result in the suspension, revocation, confiscation or expiration (with failure to renew) of any approval, license or qualification of the government department applicable to it.

 

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7.                  There is no litigation, legal process or request in any court or arbitral tribunal to the Meten Education or its assets that are pending or may constitute threats as far as known to the Meten Education, and there is no litigation, legal process or request in any governmental institution or administrative agency to the Meten Education or its assets that are pending or may constitute threats known to the Meten Education, which may have an adverse effect on the economic status of the Meten Education or the Peldgors’ abilities to perform their obligations under this Agreement.

 

8.                  The Meten Education warrants to the Pledgee that the foregoing representations and warranties will be true, accurate and complete and will be completely comply with at any time and in any case before the Contractual Obligations are fully performed or the Secured Debts are fully settled.

 

9. Covenants of the Pledgors

 

The Pledgors severally and not jointly covenant to the Pledgee as follows:

 

1.                  Without the prior written consent of the Pledgee, the Pledgors shall not establish any new pledge or entitlement/restriction on the Pledged Equity, nor shall they set or allow to set any new pledge or other entitlement/restriction on the equities of the Domestic Affiliates directly and/or indirectly held by them.

 

2.                  Without the prior written notice to the Pledgee and its prior written consent, the Pledgors shall not transfer the Pledged Equity, and all acts proposed to transfer the Pledged Equity are invalid. With or without the Pledgee’s prior written consent, the corresponding amount acquired by the Pledgors from the third party for transferring the Pledged Equity shall be owned by the Pledgee, and the Pledgee shall have the right to directly request the third party to pay the corresponding amount. The Pledgors shall provide all necessary assistance in this regard.

 

3.                  When any legal proceedings, arbitration or other request occurs, which may have an adverse effect on the interests of the Pledgors or Pledgee under the Cooperation Agreements or Pledged Equity, the Pledgors covenant that they will notify the Pledgee as soon as possible and in a timely manner, and, in accordance with the reasonable requirements of the Pledgee, take all necessary measures to ensure the Pledgee’s pledge rights to the Pledged Equity.

 

4.                  The Pledgors shall not engage in or permit any behaviors or actions that may adversely affect the Pledgee’s interest under the Cooperation Agreements or the Pledged Equity. The Pledgors waive the pre-emptive right when the Pledged Equity is realized by the Pledgee and agree to the relevant equity transfer.

 

13

 

5.                  The Pledgors covenant to, at the reasonable requirements of the Pledgee, take all necessary measures and sign all necessary documents (including but not limited to the supplemental agreement of this Agreement) to ensure the Pledgee’s pledge rights to the Pledged Equity and the implementation and exercise of such rights.

 

6.                  In the event of any transfer of the Pledged Equity arising from the exercise of the pledge under this Agreement, the Pledgors shall undertake to take all measures to realize such equity transfer.

 

The Pledgors, as direct and/or indirect rights holders of the Domestic Affiliates, further severally and not jointly covenant the following:

 

1.                  From the date of this Agreement, without the prior written consent of the Pledgee, the Pledgors will not sell, assign, transfer or otherwise dispose of the interests of the Domestic Affiliates they directly and/or indirectly hold,  and will not set any entitlement on the interests of the Domestic Affiliates they directly and/or indirectly hold at any time from the date of this Agreement; with or without the written consent of the Pledgee, the corresponding amount acquired by the Pledgors from the third party for selling, assigning, transferring or otherwise disposing of the interests of the Domestic Affiliates they directly or indirectly hold shall be owned by the Pledgee, and the Pledgee shall have the right to directly request the third party to pay the corresponding amount. The Pledgors shall provide all necessary assistance in this regard.

 

2.                  Without the prior written consent of the Pledgee, the Pledgors shall not increase or decrease the registered capital or capital contribution by organizers of Domestic Affiliates or agree to increase or decrease the aforementioned registered capital or capital contribution by organizers.

 

3.                  Without the prior written consent of the Pledgee, the Pledgors shall not agree or procure the separation of Domestic Affiliates or merge with other entities.

 

4.                  Without the prior written consent of the Pledgee, the Pledgors shall not dispose or procure the management of Domestic Affiliates to dispose of any assets of Domestic Affiliates, except that Domestic Affiliates may prove that the relevant asset disposal is necessary for its daily business operations and the value of the assets involved in the individual transaction is not more than RMB 500,000.

 

5.                  Without the prior written consent of the Pledgee, the Pledgors shall not terminate or procure the management of Domestic Affiliates to terminate any material agreement entered into by Domestic Affiliates, or enter into any other agreement that conflicts with the existing material agreements. The aforementioned “material agreements” refer to a single agreement with a total amount of more than RMB 500,000, or the Cooperation Agreements and/or any agreements similar in nature or content to Cooperation Agreements.

 

14

 

6.                  without the prior written consent of the Pledgee, the Pledgors shall not procure Domestic Affiliates to enter into transactions that may materially affect the assets, liabilities, business operations, equity structure and other legal rights of Domestic Affiliates (excluding the transaction produced in the normal or daily business processes of Domestic Affiliates and the amount of such single transaction does not exceed RMB 500,000, or has been disclosed to the Pledgee and for which the written consent of the Pledgee has been obtained).

 

7.                  Without the prior written consent of the Pledgee, the Pledgors shall not procure or agree the Domestic Affiliates to announce the distribution of or actually distribute any distributable profits and/or teaching revenues, or to agree to the foregoing distribution; any profits and/or teaching revenues distribution in violation of the foregoing provisions shall be vested to the Pledgee unconditionally and without compensation, and the Pledgee shall have the right to require to return/pay the full amount to the Pledgors.

 

8.                  Without the prior written consent of the Pledgee, the Pledgors shall not procure or agree Domestic Affiliates to amend its bylaws .

 

9.                  Without the prior written consent of the Peldgee, the Pledgors shall not procure or agree to the lending or borrowing of loans by Domestic Affiliates, or to provide guarantees or other forms of security, or to assume any material obligations outside of normal business activities; the aforementioned “material obligations” refer to any obligation under which any Domestic Affiliates is required to pay more than RMB 500,000, or that restricts and/or obstructs the Domestic Affiliates from fulfilling their obligations under the Cooperation Agreements, or restricts and/or prohibits the financial and business operations of the Domestic Affiliates, or that may cause changes in the equity structure of the Domestic Affiliates.

 

10.           It must use its best efforts to procure the Domestic Affiliates to develop their business and guarantee the legal and compliance operations, and will not carry out any actions or omissions that may damage the assets, goodwill or affect the validity of business licenses of the Domestic Affiliates.

 

11.           Before transferring the equities of the Domestic Affiliates to the Domestic Affiliates Equity Purchaser (as defined in the Exclusive Call Option Agreement), all the documents necessary for owning and maintaining the equities of the Domestic Affiliates shall be signed without affecting the Shareholder Rights Entrustment Agreement.

 

15

 

12.           In relation to the equity transfer of the Domestic Affiliates to the Domestic Affiliates Equity Purchaser, the Pledgors shall sign all the required documents and take all necessary actions.

 

13.           If fulfillment of the Domestic Affiliates’ obligations under the Cooperation Agreements requires the Pledgors to take any action as the direct and/or indirect equity holder of the Domestic Affiliates, the Pledgors shall take all actions to cooperate with the Domestic Affiliates in fulfilling the obligations stipulated in this Agreement.

 

14.           Within the authority as a direct and/or indirect shareholder of the Domestic Affiliates, without prejudice to the Cooperation Agreements, the Pledgors shall procure the directors or councils appointed by them to exercise all their rights in the Domestic Affiliates in accordance with the provisions of this Agreement, so that the Domestic Affiliates may fulfill their obligations set out in this Agreement; if any director or council fails to exercise his rights as stated above, such director or council shall be immediately removed from the board.

 

15.           The Pledgors shall procure the Domestic Affiliates to provide the Pledgee with the financial statements of the previous quarterly calendar of the Domestic Affiliates within the first month of each quarterly calendar, including (but not limited to) the balance sheet, income statement and cash flow statement.

 

10. Covenants of Meten Education

 

As the target company of the pledge of equity, Meten Education promises to the Pledgee as follows:

 

1.                  Without the prior written consent of the Pledgee, the Meten Education will not assist or permit the Pledgors to establish any new pledge or any other rights burden/restriction on the Pledged Equity, nor will they assist or permit the Pledgors to set any new pledge or any other burden/restriction on the rights of the Domestic Affiliates they directly and/or indirectly hold.

 

2.                  Without the prior written consent of the Pledgee, Meten Education will not assist or permit the Pledgors to transfer the Pledged Equity, nor will it assist the Pledgors to transfer the interests of the Domestic Affiliates they directly and/or indirectly hold.

 

3.                  When any legal proceedings, arbitration or other request occurs, which may have an adverse effect on the interests of the Pledged Equity or Pledgee under the Cooperation Agreements, the Meten Education covenant that it will notify the Pledgee as soon as possible and in a timely manner, and, in accordance with the reasonable requirements of the Pledgee, take all necessary measures to ensure the Pledgee’s pledge rights to the Pledged Equity.

 

16

 

4.                  The Meten Education shall not engage in or permit any behaviors or actions that may adversely affect the Pledgee’s interest under the Cooperation Agreements or the Pledged Equity.

 

5.                  The Meten Education covenants to, at the reasonable requirements of the Pledgee, take all necessary measures and sign all necessary documents (including but not limited to the supplemental agreement of this Agreement) to ensure the Pledgee’s pledge rights to the Pledged Equity and the implementation and exercise of such rights.

 

6.                  In the event of any transfer of the Pledged Equity arising from the exercise of the pledge under this Agreement, the Meten Education shall undertake to take all measures to realize it.

 

11. Changed Circumstances

 

1.                  Without contravention of other terms of the Cooperation Agreements, if at any time, due to the enactment or revision of any PRC laws, regulations or rules, or due to the amendment of the interpretation or application of such laws, regulations or rules, or due to changes in the registration process, that the Pledgee believes that the maintenance of this Agreement in force and/or the disposal of the Pledged Equity in the manner stipulated in this Agreement become illegal or violate such laws, rules and regulations, the Pledgors and the Meten Education shall immediately, in accordance with the Pledgee’s written instructions and the reasonable requirements of the Pledgee, take the action and/or sign any agreement or other document, in order to:

 

a)                         keep this Agreement valid;

 

b)                         dispose of the Pledged Equity in the manner prescribed in this Agreement; and/or

 

a)                          maintain and realize the security established or intend to be established by this Agreement.

 

12. Term

 

1.                  This Agreement shall become effective from the date of this Agreement.

 

2.                  The term of this Agreement shall remain in effect until the Contractual Obligations are fully fulfilled or the Secured Debts are fully settled. If a Party’s operating period expires within the validity period of this Agreement, the Party is obliged to apply to the competent authority for an extension of the business period in a timely manner, and shall ensure that the business license after the extension of the operating period is obtained before the expiration of the operating period.  The Pledgee may terminate this Agreement unilaterally after notice in thirty (30) days advance. Unless otherwise stipulated by law, in any case, neither the Meten Education nor the Pledgors has the right to terminate or dissolve this Agreement unilaterally.

 

17

 

13. Confidentiality

 

1.                  The Parties acknowledge and determine that any oral or written information exchanged with respect to this Agreement is confidential.  All parties shall keep all such information confidential and shall not disclose any relevant information to any third party without the prior written consent of other Parties, except in the following cases:

 

a)                 The public is aware of or will be aware of such information (not due to disclosure to the public by the recipients without consent);

 

b)                 Information required to be disclosed in accordance with the applicable laws and regulations, the rules and regulations of stock exchange, or the requirements of the regulatory authority; or

 

c)                  The information required to be disclosed by any party to its legal or financial adviser for the transactions described in this Agreement, and the legal or financial adviser is also subject to confidentiality obligations similar to these terms.

 

2.                  The disclosure of confidential information by the staff or the institution it employs shall be deemed to be the disclosure of confidential information by such Party, and such Party shall be liable for breach in accordance with this Agreement.

 

3.                  The Parties agree that Section 13 of this Agreement will continue to be effective irrespective of whether this Agreement is invalid, altered, dissolved, terminated or not enforceable.

 

14. Force Majeure

 

1.                  If the liability of the Parties under this Agreement shall not be fulfilled due to the event of force majeure, and the liabilities under this Agreement will be waived within the scope of force majeure.  For the purposes of this Agreement, force majeure events include only natural disasters, storms, tornadoes and other weather conditions, strikes, closures/shutdowns or other industry issues, wars, riots, conspiracy, enemy acts, terrorist acts or violent acts of criminal organizations, blockades, serious illnesses or plagues, earthquakes or other crustal movements, floods and other natural disasters, bomb explosions or other explosions, fires, accidents, or government actions that result in failure to comply with this Agreement.

 

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2.                  In the event of a force majeure event, the Party affected by the force majeure event shall endeavor to reduce and remove the effects of the force majeure event and assume the responsibility of performing the delayed and blocked obligations under the Agreement.  After the event of force majeure is lifted, the Parties agree to continue to perform this Agreement as far as possible.

 

3.                  In the event of a force majeure event that may result in delays, prevention or threats to delay or prevent the performance of this Agreement, the Parties shall notify the other Parties in writing and provide all relevant information.

 

15. Miscellaneous

 

1.                  Where permitted by PRC laws, the Pledgee may transfer its rights and obligations under this Agreement to other third parties if so required.  The Pledgee is only required to give written notice to the other Parties at the time of the transfer and no longer need to obtain the consent of the Pledgors or the Meten Education. The Pledgors or Meten Education may not transfer their rights, obligations or liabilities under this Agreement to any third party without the prior written consent of the Pledgee.  The assignee or permitted transferee (if any) of the Pledgor and the Meten Education shall continue to perform the respective obligations of the Pledgors and the Meten Education under this Agreement.

 

2.                  For the avoidance of doubt, each of the representations, warranties and covenants made by the Pledgor under this Agreement shall be deemed to be made separately, and the above representations, warranties, covenants or any obligations under this Agreement will not constitute joint obligations between the Pledgors.  Further, each obligation assumed by the Pledgors to “procure”, “covenant”, “guarantee” or “agree” that Meten Education or other Domestic Affiliates shall act or shall not act under this Agreement only refer to the exercise of the rights by such shareholders according to the bylaws of Meten Education or other Domestic Affiliates or other agreements based on the respective shareholding ratios, or the exercise of voting rights at the shareholders’ meeting to support such acts or inaction, or the support of such acts or inaction by the designated or appointed directors or senior management personnel in accordance with the provisions of bylaws or other agreements.  No shareholder shall assume any warranty or guarantee responsibility for the consequences of the act or inaction by Meten Education or other Domestic Affiliates beyond its rights as shareholders.

 

3.                  The amount of the secured obligation recognized by the Pledgee in exercising its pledge of the Pledged Equity in accordance with the provisions of this Agreement shall be the final evidence of the secured obligation under this Agreement.

 

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4.                  The conclusion, validity, interpretation, performance, modification and termination of this Agreement and the resolution of disputes shall be in accordance with PRC laws.

 

5.                  Any dispute or claim arising out of or in connection with this Agreement or the performance, interpretation, breach, termination or validity of this Agreement shall be settled through friendly negotiation.  The negotiation shall begin after the written negotiation request for a specific statement of the dispute or claim has been sent to the other Party.

 

6.                  If the dispute cannot be resolved within thirty (30) days of the delivery of the above notice, either party shall have the right to submit the dispute to arbitration for settlement.  The parties agree to submit the dispute to the Shenzhen International Court of Arbitration in Shenzhen for an arbitral award in accordance with the arbitration rules in force at that time. The arbitral award is final and is legally binding on all parties.

 

7.                  During the arbitration period, in addition to the disputes submitted to the arbitration, the Parties to this Agreement shall continue to perform their other obligations under this Agreement.

 

8.                  Any rights, powers and remedies given to the Parties under any provision of this Agreement shall not exclude any other rights, powers or remedies that the Party may have in accordance with the law and other terms of this Agreement. The exercise of one party of its rights, powers and remedies shall not exclude the exercise of other rights, powers and remedies available to such Party.

 

9.                  The failure to exercise or delay the exercise of any of its rights, powers and remedies (hereinafter refer to as the “Such Rights”) under this Agreement or the law a Party shall not result in the waiver of Such Rights. The waiver of any single or part of Such Rights of such Party shall not exclude the Party from exercise of Such Rights in other ways and the exercise of other rights of such party.

 

10.           Each of the terms of this Agreement may be divided and independent of each other term. If at any time any one or more of the terms of this Agreement become invalid, illegal or unenforceable, the validity, legality and enforceability of other provisions of this Agreement shall not affected.

 

20

 

11.           Through negotiations among the Parties and approved by the shareholder (or shareholders’ meeting) of WFOE, the Parties may modify or supplement this Agreement and take all necessary steps and actions, and bear the corresponding expenses, so that any modification or supplement can be legally valid.  If [New York Stock Exchange] (hereinafter referred to as “[NYSE]”) or other regulatory authorities make any amendments to this Agreement, or any relevant rules, regulations or related requirements of [NYSE] produce any changes related to this Agreement, the Parties shall revise this Agreement accordingly.

 

12.           This agreement is drafted in Chinese language in nineteen (19) counterparts, each of which shall be held each Party to this Agreement and has the same legal effect

 

(Signature Page Follows)

 

21

 

(Signature page of the Equity Pledge Agreement)

 

	
Zhuhai   Meizhilian Education Technology Co., Ltd. (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of legal representative/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Yupeng Guo
    	
 
    

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Shenzhen Meten International Education   Co., Ltd. (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of legal representative/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Jishuang Zhao
    	
 
    
	
 
    	
 
    
	
 
    	
ID card number: []
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Siguang Peng
    	
 
    
	
 
    	
 
    
	
 
    	
ID card number: []
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Siguang Peng
    	
 
    

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Yupeng Guo
    	
 
    
	
 
    	
 
    
	
 
    	
ID card number: []
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Yupeng Guo
    	
 
    

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Yun   Feng
    	
 
    
	
 
    	
 
    
	
 
    	
ID card number: []
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Yun Feng
    	
 
    

 

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Jun Yao
    	
 
    
	
 
    	
 
    
	
 
    	
ID card number: []
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Jun Yao
    	
 
    

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Tong   Zeng
    	
 
    
	
 
    	
 
    
	
 
    	
ID card number: []
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Tong Zeng
    	
 
    

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Yongchao   Chen
    	
 
    
	
 
    	
 
    
	
 
    	
ID card number: []
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Yongchao Chen
    	
 
    

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Xinyu Meilianzhong Investment Management Center   (Limited Partnership) (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of the executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Siqi Huang
    	
 
    
				

 

	
Xinyu   Meilian Investment Management Center (Limited Partnership) (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of the executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Siqi Huang
    	
 
    
				

 

	
Xinyu   Meilianchou Investment Management Center (Limited Partnership) (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of the executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Siqi Huang
    	
 
    
				

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Shenzhen   Daoge No. 21 Investment Partnership (Limited Partnership) (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of the executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Chenyang Xu
    	
 
    
				

 

	
Shenzhen   Daoge No. 11 Education Investment Partnership (Limited Partnership) (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of the executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Chenyang Xu
    	
 
    
				

 

	
Shenzhen   Daoge Development No. 3 Investment Fund Partnership (Limited   Partnership) (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of the executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Chenyang Xu
    	
 
    
				

 

	
Shenzhen   Daoge Development No. 6 Investment Fund Partnership (Limited   Partnership) (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of the executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Chenyang Xu
    	
 
    
				

 

	
Shenzhen   Daoge Development No. 5 Investment Fund Partnership (Limited   Partnership) (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of the executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Chenyang Xu
    	
 
    
				

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Zhihan   (Shanghai) Investment Center (Limited Partnership) (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of the executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Junbao Shan
    	
 
    
				

 

 

(Signature page of the Equity Pledge Agreement)

 

	
Hangzhou   Muhua Equity Investment Fund Partnership (Limited Partnership) (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Shu Zhang
    	
 
    

 

 

Annex 1: Pledgors

 

1.                  Jishuang Zhao

2.                  Siguang Peng

3.                  Yupeng Guo

4.                  Yun Feng

5.                  Jun Yao

6.                  Tong Zeng

7.                  Yongchao Chen

8.                  Xinyu Meilianzhong Investment Management Center (Limited Partnership)

9.                  Xinyu Meilianxing Investment Management Center (Limited Partnership)

10.           Xinyu Meilianchou Investment Management Center (Limited Partnership)

11.           Shenzhen Daoge No.21 Investment Partnership (Limited Partnership)

12.           Shenzhen Daoge No.11 Education Investment Partnership (Limited Partnership)

13.           Shenzhen Daoge Development No. 3 Investment Fund Partnership (Limited Partnership)

14.           Shenzhen Daoge Development No. 6 Investment Fund Partnership (Limited Partnership)

15.           Shenzhen Daoge Development No. 5 Investment Fund Partnership (Limited Partnership)

16.           Zhihan (Shanghai) Investment Center (Limited Partnership)

17.           Hangzhou Muhua Equity Investment Fund Partnership (Limited Partnership)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]