Document:

Exhibit 10.5

 

[English Translation]

 

Exclusive Technology and Consultation Service Agreement

 

This Exclusive Technology and Consultation Service Agreement (“Agreement”) is executed in Shanghai, the People’s Republic of China (“PRC”) on September 17, 2017 by the between:

 

(1)             Shanghai Jing Xue Rui Information and Technology Co., Ltd., a wholly foreign-owned enterprise incorporated under the PRC laws, with its registered address at *** and its legal representative being Meng Xiaoqiang (“Party A”); and

 

(2)             Shanghai OneSmart Education and Training Co., Ltd., a limited liability company incorporated under the PRC laws, with its contact address at ***, and its legal representative being Fan Yaozu (“Party B”).

 

(In this Agreement, each a “Party”, collectively the “Parties”.)

 

WHEREAS, Party B is to engage Party A to provide it with technical support and consultation services.

 

Upon friendly discussions, the Parties hereby agree as follows:

 

1.                                               Definitions

 

1.1                                        Unless otherwise required by the terms or the context of this Agreement, the following terms shall have the following meanings in this Agreement:

 

“Party B’s Business” means all business activities operated and developed by Party B currently and at any time during the term of this Agreement.

 

“Services” means the services provided by Party A to Party B and/or its affiliated entities in relation to Party B’s and/or its affiliated entities’ business, including without limitation:

 

(1) providing technical support related to Party B’s Business;

 

(2) providing professional consultation services related to Party B’s Business;

 

(3) training of technical and business personnel of Party B;

 

(4) providing labor support at Party B’s request, including without limitation  seconding or dispatching relevant personnel;

 

 

(5) providing market research, planning and development services;

 

(6) providing business planning and strategy (advisory suggestions); and

 

(7) providing client support and development services (advisory suggestions).

 

“Service Team” means the team established by Party A in order to provide Party B with the Services under this Agreement, including employees engaged by Party A, third party professional consultants and other personnel engaged by Party A.

 

“Service Fees” means all fees payable by Party B and/or its affiliated entities to Party A in accordance with Section 3 of this Agreement in respect of the Services provided by Party A.

 

“Business Income” means, for any year during the term of this Agreement, Party B’s income gained by operating its business in such year recorded in the “main business income” column of Party B’s audited balance sheet under PRC GAAP.

 

“Annual Business Plan” means the development plan of Party B’s Business and budget report for the next calendar year prepared before November 30 of each year, by Party B and with the assistance of Party A, in accordance with this Agreement and.

 

“Devices” means any and all devices owned or purchased from time to time by Party A and utilized for the purposes of the provision of the Services.

 

1.2                                        In this Agreement, any reference to any laws and regulations (“Laws”) shall be deemed to include: (1) a reference to such Laws as modified, amended, supplemented or reenacted, effective before or after the date of this Agreement; and (2) a reference to any other decisions, circulars or rules made pursuant to such Laws or effective as a result of such Laws.

 

1.3                                        Unless otherwise stated in the context of this Agreement, a reference to a provision, clause, section or paragraph shall refer to a corresponding provision, clause, section or paragraph of this Agreement.

 

2.                                               Party A’s Services

 

2.1                                        For the purpose of better operating Party B’s Business, Party B requires services provided by Party A and Party A agrees to provide such services for Party B. For this purpose, Party B appoints Party A as its exclusive consultation and service provider for providing the Services defined under this Agreement to Party B and/or its affiliated entities on an exclusive basis and Party A accepts such appointment. The Parties understand the Services actually provided by Party A is subject to Party A’s approved business scope.

 

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2.2                                        Party A shall provide the Services to Party B and/or its affiliated entities according to this Agreement (the specific scope of such Services shall be further determined by Party A and Party B according to this Agreement), and Party B shall to its best efforts facilitate Party A’s Services.

 

2.3                                        Party A shall be equipped with all Devices and Service Team reasonably necessary for the provision of the Services and shall, in accordance with Party B’s Annual Business Plan and Party B’s reasonable requests, procure and purchase new Devices and recruit new personnel so as to meet the requirement of providing quality Services by Party A to Party B in accordance with this Agreement. However, Party A is entitled to from time to time and at its own discretion replace any member of the Service Team, or change the specific service responsibilities of any member of the Service Team, on the condition that such replacement of members or change of service responsibilities will not have a material adverse effect on Party B’s daily business operations.

 

2.4                                        Notwithstanding other provisions of this Agreement, Party A shall be entitled to designate any third party to provide any or all of the Services under this Agreement or fulfill, in lieu of Party A, any Party A’s obligations under this Agreement. Party B hereby agrees that Party A is entitled to transfer to any third party its rights and obligations under this Agreement.

 

3.                                               Services Fees

 

3.1                                        In respect of the Services provided by Party A according to this Agreement, Party B shall pay the Services Fees to Party A in the following manner:

 

3.1.1                              To the extent in compliance with the PRC Laws, Party A is entitled to determine the number of the Service Fees based on the specific circumstances of providing technical consultations and services to Party B and/or its affiliated entities, the operating conditions of Party B, the development need of Party B and other circumstances, and such number shall be the result after compensating losses of the previous years (if needed) and deducting costs, expenses, taxes and other amounts necessary for business operations by Party B and/or its affiliated entities respectively, which shall be equivalent to all or part of the aggregate amount of Party B’s and/or its affiliated entities’ total profits before provision of taxes, excluding the Service Fees under this agreement (“Total Pre-tax Profits”); and

 

3.1.2                              The Service Fees for any specific Services provided from time to time by Party A at Party B’s request, as may be otherwise agreed by the Party A in writing.

 

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3.2                                        Party B shall and shall cause its affiliated entities to pay the Service Fees of the previous quarter determined by Section 3.1.1 into a bank account designated by Party A within fifteen (15) working days after the end of each quarter. After the end of each fiscal year of Party B, Party A and Party B shall determine the Total Pre-tax Profits based on the audit report issued by a PRC registered accounting firm acknowledged by both Parties. Unless otherwise agreed by Party A, Party B shall and shall cause its affiliated entities (if applicable) to pay the unpaid part of the Service Fees based on the audited Total Pre-tax Profits into the bank account designated by Party A before March 31 of each year; if Party B and/or its affiliated entities overpaid the Service Fees to Party A in the previous year after audit (“Overpaid Fees in the Previous Year”), Party A shall pay the Overpaid Fees in the Previous Year into a bank account designated by Party B and/or its affiliated entities. Party B undertakes to Party A that it will provide all the necessary materials and assistance to the aforesaid accounting firm and cause it to complete and issue to both Parties the audit report for the previous year within thirty (30) working days after the completion of each calendar year. If Party A changes its bank account, it shall give Party B a written notice seven (7) business days’ in advance.

 

3.3                                        The Parties agree that Party A is entitled to unilaterally approve in writing Party B’s and/or its affiliated entities’ delay payment of the Service Fees and/or adjustment the calculation and collection percentage and/or the specific number of the Service Fees under Section 3.1 payable by Party B and/or its affiliated entities to Party A.

 

3.4                                        The number and payment method of the Service Fees that Party B shall pay to Party A in accordance with Section 3.1.2 will be separately determined by Party A in writing based on the nature of the Services and workload.

 

4                                                  Party B’s Obligations

 

4.1                                        The Services provided by Party A under this Agreement shall be exclusive. During the term of this Agreement, without prior written consent of Party A, Party B shall not enter into any written or oral agreement or other arrangement with any other third party to engage such third party for providing Party B with services identical or similar to the Services provided by Party A under this Agreement. The Parties agree that Party A can designate a third party to provide the Services under this Agreement for Party B. For the avoidance of doubt, this Agreement shall not restrict Party A’s provision of any product and/or service to any third party other than Party B.

 

4.2                                        Party B shall, before November 30 of each year, provide to Party A its determined Annual Business Plan for the next year so that Party A can arrange the corresponding services plan and procure the required software, Devices, personnel and technical service resources. If Party B requires Party A to procure Devices or personnel on an ad hoc basis, it shall consult with Party A fifteen (15) days in advance so as to reach mutual agreement.

 

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4.3                                        In order to facilitate Party A’s provision of the Services, Party B shall, at Party A’s request, accurately and timely provide to Party A such relevant materials as required by Party A.

 

4.4                                        Party B shall in accordance with Section 3 of this Agreement pay the full number of the Service Fees in a timely manner to Party A.

 

4.5                                        Party B shall maintain its goodwill, actively expand its business and seek the maximization of its profits.

 

4.6                                        The Parties hereby acknowledge that, according to the terms and conditions of the Equity Pledge Agreement (including any amendment, supplement or restatement thereto from time to time) executed on the same date of this Agreement by and among all the shareholders of Party B on record on the execution date of this Agreement (“Existing Shareholders”) and Party A , each Existing Shareholder has pledged its respective equity interests in Party B to Party A as security for the performance of Party B’s obligations under this Agreement. Without Party A’s written consent, Party B shall not add new shareholders (“New Shareholders”) through capital increase, approval of equity transfer by the Existing Shareholders or in other manner. If Party B adds New Shareholders after the execution of this Agreement, Party B shall cause such New Shareholders to execute an equity pledge agreement on the same date when they become Party B’s shareholders whereby they shall pledge their equity interests in Party B to Party A as security for the performance of Party B’s obligations under this Agreement.

 

4.7                                        During the term of this Agreement, Party B agrees to cooperate with Party A and its parent companies (including direct or indirect parent companies) to conduct related party transaction audit and other types of audits, to provide Party A, its parent companies or its designated auditors with relevant information and materials in relation to Party B’s operation, business, clients, finance, employees, etc., and to approve Party A’s parent companies to disclose such information and materials in order to meet the supervisory requirement of its securities listing place.

 

5.                                               Intellectual Properties

 

5.1                                        To the extent permitted by the then applicable PRC Laws and regulations, intellectual properties (including without limitation copyrights, patents, patents application rights, trademarks, technical secrets, commercial secrets and others) of working achievements created by Party A during its provision of the Services under this Agreement or developed and created by Party B based on Party A’s intellectual properties, shall belong to Party A. If it is explicitly stipulated in applicable PRC Laws and regulations that such intellectual properties shall not be owned by Party A, then such intellectual properties shall first be held by Party B, and Party A shall be granted with an exclusive permit to use such intellectual properties, which shall be transferred to Party A at the lowest price permitted by relevant laws till PRC Laws and regulations permit Party A’s such ownership; if there is no restriction on the lowest transfer price under the then relevant laws, Party B shall unconditionally approve the transfer of ownership of such intellectual properties and assist Party A in all the governmental filing, registration and other formalities regarding the change of intellectual property owner.

 

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5.2                                        For the purpose of performing this Agreement, Party B is entitled to, in accordance with this Agreement, use the working products created by Party A during its provision of the Services under this Agreement. However, the Agreement does not in any manner permit Party B to use such working products for other purpose in any manner.

 

5.3                                        Each Party undertakes to the other Party that it will indemnify the other Party against any and all economic losses suffered by the other Party as a result of any of its infringement of intellectual properties (including copyrights, trademarks, patents and know-hows) of others.

 

6.                                               Confidentiality Obligations

 

6.1                                        During the term of this Agreement, all customer information and other relevant materials with respect to Party B’s Business and the Services provided by Party A (“Customer Information”) shall belong to Party A.

 

6.2                                        Regardless of whether this Agreement has been terminated, Party A and Party B shall maintain in strict confidence the business secrets, exclusive information, Customer Information and other relevant materials and any other non-public information of the other Party obtained during the entry into and performance of this Agreement (“Confidential Information”). Except where prior written consent has been obtained from the other Party or where disclosure to a third party is mandated by relevant laws and regulations or by rules of relevant stock exchanges, or where the disclosure is made during the proceedings of any suit, arbitration or other legal proceedings or made, in relation to the aforesaid legal proceedings, to the courts, arbitration institutions, or relevant implementation or regulatory authorities, the Party receiving the Confidential Information (“Receiving Party”) shall not disclose the Confidential Information or any part of it to any other third party; the Receiving Party shall not directly or indirectly use any Confidential Information or any part of it other than for the purpose of performing this Agreement.

 

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6.3                                        The following information shall not constitute the Confidential Information:

 

6.3.1                              any information that has already been previously obtained by the Receiving Party in a lawful manner as proved by written records; or

 

6.3.2                              any information that enters the public domain not due to the fault of the Receiving Party or becomes known to the public due to other reasons; or

 

6.3.3                              any information lawfully acquired by the Receiving Party from other sources thereafter.

 

6.4                                        The Receiving Party may disclose the Confidential Information to its or its related parties’ relevant employees, agents, lenders or potential lenders (including the agents or trustees of the lenders), financing arrangers or potential financing arrangers or its appointed professionals, provided that such Receiving Party shall ensure that the aforesaid persons shall be subject to this Agreement or (as for any lenders (including the agents or trustees of the lenders) or the financing arrangers) the separately executed confidentiality agreements so as to keep the Confidential Information in confidence, and shall use such Confidential Information solely for the purpose of performing this Agreement.

 

6.5                                        Upon termination of this Agreement, the Receiving Party of the Confidential Information shall return any document, material or software containing Confidential Information to the original owner or provider of the Confidential Information, or shall destroy the Confidential Information upon the approval of the original owner or provider, including deletion of any Confidential Information in any relevant memory storage device, and shall not continue to use such Confidential Information.

 

6.6                                        The Parties agree that, regardless of whether this Agreement is amended, canceled or terminated, this provision will continue to be effective.

 

7.                                               Representations and Warranties

 

7.1                                        Party A hereby represents and warrants that:

 

7.1.1                              It is a limited liability company duly registered and lawfully existing under the laws of its place of registration with independent legal personality; it has full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and has been duly authorized to execute, deliver and perform this Agreement, and may sue or be sued as an independent party.

 

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7.1.2                              It has full internal corporate power and authority to execute and deliver this Agreement and all other documents to be executed by it in connection with the transactions contemplated in this Agreement as well as full power and authority to consummate the transactions contemplated in this Agreement. This Agreement is lawfully and duly executed and delivered by it. The execution and performance of this Agreement by it do not violate or conflict with any law applicable to it in effect, any agreement to which it is a party or by which its assets are bound, any court judgment, any arbitral award, or any decision of any administrative authority. This Agreement constitutes lawful and binding obligations enforceable against it in accordance with the terms of this Agreement.

 

7.2                                        Party B hereby represents, warrants and undertakes that:

 

7.2.1                              It is a limited liability company duly registered and lawfully existing under the laws of its place of registration with independent legal personality; it has full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and has been duly authorized to execute, deliver and perform this Agreement, and may sue or be sued as an independent party.

 

7.2.2                              It has full internal corporate power and authority to execute and deliver this Agreement and all other documents to be executed by it in connection with the transactions contemplated in this Agreement as well as full power and authority to consummate the transactions contemplated in this Agreement. The execution and performance of this Agreement by it do not violate or conflict with any law applicable to it in effect, any agreement to which it is a party or by which its assets are bound, any court judgment, any arbitral award, or any decision of any administrative authority. This Agreement is lawfully and duly executed and delivered by it. This Agreement constitutes lawful and binding obligations enforceable against it in accordance with the terms of this Agreement.

 

7.2.3                              Upon the date of this Agreement, it has complete operating licenses needed for its operation and full rights and qualifications to conduct Party B’s Business which it is currently conducting within the PRC.

 

7.2.4                              It shall timely inform Party A of any litigation regarding itself and other adverse circumstances, and shall use its best efforts to prevent the expansion of losses.

 

7.2.5                              Without written consent of Party A, Party B shall not, in any manner, dispose of its material assets and businesses, change its current shareholding structure, provide security to any third party, or permit any third party to create any other security interest on its assets or rights and interests.

 

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7.2.6                              Upon Party A’s request, it shall, within fifteen (15) working days after the end of each quarter, deliver to Party A the financial statements for that quarter, and within thirty (30) working days after the end of each year, deliver to Party A the financial statements for that year.

 

7.2.7                              It shall not enter into any transaction that may substantially affect Party B’s assets, liabilities, business operation, shareholding structure, equity interests held in third parties and other lawful rights (except for those happening in ordinary or daily course of business or those disclosed to and approved in writing by Party A).

 

7.2.8                              Upon Party A’s written request, it shall use all its receivables and/or all other lawfully owned and disposable assets then as security for the performance of payment obligations of the Service Fees under Section 3 of this Agreement, in a manner permitted by the Laws then.

 

7.2.9                              It shall indemnify Party A against all actual or potential losses arising from the provision of the Services and prevent Party A from any damages, including without limitation any losses due to litigations, pursuits for recovery, arbitrations or claims for compensation initiated by any third party against Party A, or administration investigations or penalties by governmental authorities, except for those losses resulting from Party A’s willful conduct or gross negligence.

 

7.2.10                       Party B undertakes that if during the term of the Services, Party B owns, establishes, merges or purchases any company to be an affiliated company of Party B, it shall cause such affiliated company to execute a consultation service agreement with Party A or its designated person for provision of consultation services for all businesses and assets of such affiliated company. The term, articles and forms of such consultation service agreement shall be identical to those of this Agreement. Party B shall and/or shall cause such affiliated company to conduct and execute all issues and documents (including without limitation adopting relevant resolutions of shareholders’ meeting and board of directors) so as to make such consultation service agreement is effective and lawful.

 

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8.                                               Term of Agreement

 

8.1                                        The Parties hereby acknowledge that, this Agreement shall be formed and become effective after being executed/sealed by the Parties or their authorized representatives. Unless with Party A’s written notification to cancel this Agreement, or required to be terminated by relevant applicable PRC Laws and regulations, this Agreement will continue to be effective.

 

8.2                                        The Parties shall complete the approval and registration formalities for extension of the term of operation within three (3) months prior to the expiry of their respective term of operation so as to continue the term of this Agreement.

 

8.3                                        After termination of this Agreement, the Parties shall still respectively comply with their obligations under Section 3 and Section 6 of this Agreement.

 

8.4                                        The termination of this Agreement for any reason shall not exempt any Party from all its payment obligations under this Agreement (including without limitation the Service Fees) that are due before the termination date of this Agreement, and shall not exempt any liability of default incurred before the termination of this Agreement. The Service Fees incurred before the termination of this Agreement shall be paid to Party A within fifteen (15) working days after the termination date of this Agreement.

 

9.                                               Indemnification

 

Party B shall indemnify Party A against all actual or potential losses arising from the provision of the Services and prevent Party A from any damages, including without limitation any losses due to litigations, pursuits for recovery, arbitrations or claims for compensation initiated by any third party against Party A, or administration investigations or penalties by governmental authorities, except for those losses resulting from Party A’s willful conduct or gross negligence.

 

10.                                        Notice

 

10.1                                 Any notice, request, demand and other correspondences required by or made pursuant to this Agreement shall be made in writing and delivered to the relevant Parties.

 

10.2                                 Notices under this Agreement shall be delivered in person, by facsimile or by registered post to the following addresses unless changed by written notifications. The delivery date of the notice shall be the receiving date on the receipt if delivered by registered post, or the date of delivering to the recipient if delivered in person or by facsimile. If delivered by facsimile, the original notice should be immediately sent to the following addresses in person or by registered post after such delivery.

 

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Party A: Shanghai Jing Xue Rui Information and Technology Co., Ltd.

Registered Address:

Tel:

Recipient: Zhang Xi

 

Party B: Shanghai OneSmart Education and Training Co., Ltd.

Domicile:

Tel:

Recipient: Zhang Xi

 

11.                                        Liability for Default

 

11.1                                 The Parties agree and acknowledge that if any Party (“Defaulting Party”) breaches any provision of this Agreement, or fails to perform any obligation under this Agreement, it shall constitute a default under this Agreement (“Default”) and the non-defaulting Party shall be entitled to request the Defaulting Party to cure such Default or take remedies within a reasonable time period. If the Defaulting Party fails to cure such Default or take remedies within such reasonable time period or within ten (10) days after the non-Defaulting Party notifies the Defaulting Party in writing and requests it to cure such Default, then the non-defaulting Party is entitled to decide at its discretion:

 

11.1.1                       If Party B is the Defaulting Party, Party A shall be entitled to terminate this Agreement and request the Defaulting Party to indemnify it against all the damages, or to request the Defaulting Party to continue to perform its obligations under this Agreement and to request the Defaulting Party to indemnify it for all the damages;

 

11.1.2                       If Party A is the Defaulting Party, Party B shall be entitled to request the Defaulting Party to indemnify it for all the damages, unless otherwise stipulated by the Laws, the non-defaulting Party shall not be entitled to terminate or cancel this Agreement under any circumstances.

 

11.2                                 Notwithstanding any other provisions of this Agreement, the validity of this Section 11 shall not be affected by any suspension or termination of this Agreement.

 

12.                                        Force Majeure

 

12.1                                 If there exists an earthquake, typhoon, flood, fire, war, change in policy or laws or other force majeure event which is unforeseeable or the consequences of which are unpreventable or unavoidable, and a Party is directly affected thereby in its performance of this Agreement or is prevented thereby from performing this Agreement on the agreed terms, the Party encountering such force majeure event shall immediately send a notice by facsimile and shall within thirty (30) days provide details of such force majeure and evidencing documents setting forth the reasons for its failure to perform this Agreement or its postponed performance of this Agreement. Such evidencing documents shall be issued by the notary body of the place of the force majeure. The Party affected by force majeure event shall take appropriate measures to mitigate or eliminate the effect of such force majeure event and shall make efforts to resume its performance of obligations that has been so postponed or prevented by such force majeure event. The Parties shall, in light of the extent of the effect of such force majeure event on the performance of this Agreement, agree on whether to waive the performance of part of this Agreement or to permit postponed performance thereof. No Party shall be held liable to indemnify the other Party against its economic losses resulting from a force majeure event.

 

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13.                                        Miscellaneous

 

13.1                                 This Agreement is made in Chinese in two (2) originals and each Party to this Agreement shall hold one (1) copy.

 

13.2                                 The entry into, effectiveness, performance, amendment, interpretation and termination of this Agreement shall be governed by the PRC Laws.

 

13.3                                 Any dispute arising out of and in connection with this Agreement shall be settled by the Parties through consultations and shall, in the absence of an agreement being reached by the Parties within thirty (30) days from its occurrence, be submitted by any Party to China International Economic and Trade Arbitration Commission (“CIETAC”) for arbitration in accordance with the then effective arbitration rules of CIETAC. The place of arbitration shall be Beijing and the language for arbitration shall be Chinese. The arbitration award shall be final and binding on the Parties to this Agreement.

 

13.4                                 No rights, power or remedies granted to each Party by any provision of this Agreement shall preclude any other rights, power or remedies enjoyed by such Party in accordance with the Laws or other provisions under this Agreement and no exercise by a Party of any of its rights, powers and remedies shall preclude its exercise of its other rights, power and remedies.

 

13.5                                 No failure or delay by a Party in exercising any rights, power or remedies pursuant to this Agreement or any Laws (“Such Rights”) shall result in a waiver of Such Rights; and no single or partial waiver of Such Rights shall preclude such Party from exercising Such Rights in any other manner or from exercising other Such Rights.

 

13.6                                 The section headings in this Agreement are for convenience of reference only and shall in no event be used in or affect the interpretation of the provisions of this Agreement.

 

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13.7                                 This Agreement shall replace any other written or oral agreements related to the issues in this Agreement previously entered into by the Parties, and shall constitute the complete agreement between the Parties.

 

13.8                                 Each provision contained in this Agreement shall be severable and independent from any other provisions of this Agreement, and if at any time any one or more provisions of this Agreement become invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

 

13.9                                 Any amendments or supplements to this Agreement shall be made in writing, and shall take effect only if duly signed/sealed by the Parties to this Agreement. Notwithstanding as otherwise agreed in this Agreement, without prior written consent of Party A, Party B shall not terminate this Agreement. Notwithstanding the aforesaid, Party A can at any time terminate this Agreement by sending a written notice to Party B thirty (30) days in advance.

 

13.10                          Without prior written consent of Party A, Party B shall not transfer any of its rights and/or obligations under this Agreement to any third party. To the extent not in contravention of the PRC Laws, Party A is entitled to transfer any of its rights and/or obligations under this Agreement to any third party designated by it without prior notice to or consent of Party B.

 

13.11                          This Agreement shall be binding upon the lawful successors of the Parties.

 

13.12                          The Parties undertake to each file and pay, in accordance with relevant Laws, the taxes involved in the transaction under this Agreement.

 

[Intentionally left blank below]

 

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[Signature Page to Exclusive Technology and Consultation Service Agreement]

 

IN WITNESS WHEREOF, the Parties have caused this Exclusive Technology and Consultation Service Agreement to be executed at the place and as of the date first above written.

 

 

	
Shanghai Jing Xue Rui Information and Technology   Co., Ltd. (seal)
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Meng Xiaoqiang
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
Position:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Shanghai   OneSmart Education and Training Co., Ltd. (seal)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Zhang Xi
    	
 
    
	
 
    	
 
    
	
Name: Zhang Xi
    	
 
    
	
 
    	
 
    
	
Position:   Authorized RepresentativeExhibit 10.6

 

[English Translation]

 

Equity Pledge Agreement

 

This Equity Pledge Agreement (this “Agreement”) is entered into by and among the following parties on September 17, 2017:

 

1.                                               Shareholders of Shanghai OneSmart Education and Training Co., Ltd. listed in Schedule 1 (the “Pledgors”)

 

2.                                               Shanghai Jing Xue Rui Information and Technology Co., Ltd. (the “Pledgee”)

 

Registered Address: ***

 

Legal Representative: Meng Xiaoqiang

 

3.                                               Shanghai OneSmart Education and Training Co., Ltd. (the “Company”)

 

Registered Address: ***

 

Legal Representative: Fan Yaozu

 

(In this Agreement, each a “Party”, collectively the “Parties”.)

 

WHEREAS:

 

(1)                                          The Pledgors are the registered shareholders of the Company, aggregately holding 100% of the equity interests in the Company (the “Company Equities”). At the date hereof, their capital contributions to the registered capital of the Company and percentages of shareholding in the Company are set out in Schedule 1 hereto.

 

(2)                                          In accordance with the Exclusive Purchase Right Agreement (together with any amendment or restatement thereto, the “Purchase Right Agreement”) executed on the date hereof by and among the Parties, the Pledgors and/or the Company shall, to the extent permitted by the PRC Laws and at the request of the Pledgee, transfer all or part of their equity interests in the Company and/or all or part of the assets of the Company to the Pledgee and/or any other entity or individual designated by the Pledgee.

 

(3)                                          In accordance with the Loan Agreement (together with any amendment or restatement thereto, the “Loan Agreement”) executed on the date hereof by and between the Pledgors and the Pledgee, the Pledgee agrees to provide loans to the Pledgors pursuant to the terms and conditions of the Loan Agreement.

 

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(4)                                          In accordance with the Shareholders’ Voting Rights Agreement (together with any amendment or restatement thereto, the “Shareholders’ Voting Rights Agreement”) executed on the date hereof by and among the Parties, the Pledgors have irrevocably granted a general power of attorney to such person then appointed by the Pledgee to exercise all of their shareholders’ voting rights in the Company on behalf of the Pledgors.

 

(5)                                          In accordance with the Exclusive Technology and Consultation Service Agreement (together with any amendment or restatement thereto, the “Consultation Service Agreement”) executed on the date hereof by and between the Company and the Pledgee, the Company has engaged the Pledgee exclusively to provide relevant technical support and consulting and other services, and agreed to pay corresponding service fees to the Pledgee for such services.

 

(6)                                          As security for performance of their Contractual Obligations (as defined below) and the repayment of the Secured Indebtedness (as defined below) by the Pledgors and the Company, the Pledgors agree to pledge all of their Company Equities to the Pledgee and grant in favor of the Pledgee the first ranking pledge over such Company Equities.

 

NOW, THEREFORE, through negotiations, the Parties agree as follows:

 

1.                                               Definition

 

1.1                                        Unless otherwise defined in its context, in this Agreement:

 

	
“Contractual   Obligations”:
    	
 
    	
means all of the Pledgors’ and/or the Company’s   contractual obligations under the Loan Agreement, Consultation Service   Agreement, Purchase Right Agreement, Shareholders’ Voting Rights Agreement   and this Agreement (including any amendment or restatement thereto).
    
	
 
    	
 
    	
 
    
	
“Secured Indebtedness”:
    	
 
    	
means all of the service fees and interest entitled   to the Pledgee, and the repaid loans and interest by the Pledgors to the   Pledgee under the Transaction Agreements (as defined below); all losses of   direct, indirect or predictable benefits incurred as a result of any Event of   Default (as defined below) caused by the Pledgors and/or the Company, the   amount of which shall be determined by the Pledgee at its absolute discretion   to the extent permitted by the PRC Laws and shall be absolutely binding upon   the Pledgors and the Company; and all costs incurred by the Pledgee for   enforcing the performance of the Contractual Obligations by the Pledgors   and/or the Company and for realizing the Pledge Right (including without   limitation, legal fees, arbitration fees, valuation and auction fees for the   Pledged Equities (as defined below), and other fees).
    

 

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“Transaction Agreements”:
    	
 
    	
means the Loan Agreement, the Consultation Service   Agreement, the Purchase Right Agreement and the Shareholders’ Voting Rights   Agreement.
    
	
 
    	
 
    	
 
    
	
“Event of Default”:
    	
 
    	
shall refer to any of the circumstances below:

 

(1)         the breach by any   Pledgors and/or the Company of any Contractual Obligations under the Loan   Agreement, the Purchase Right Agreement, the Shareholders’ Voting Rights   Agreement, the Consultation Service Agreement and/or this Agreement   (including any amendment or restatement thereto);

 

(2)         the accelerated payment   or performance of any loans, security interests, indemnities, undertakings or   any other liabilities of the Pledgors and/or the Company to any third party,   or failure to repay or perform such loans, security interests, indemnities,   undertakings or other liabilities when it is due and payable, in each case   resulting in the Pledgee’s reasonable belief that the ability of the Pledgors   and/or the Company to perform this Agreement has been materially and   adversely affected;

 

(3)         the material adverse   change in the assets owned by the Pledgors and/or the Company, resulting in   the Pledgee’s reasonable belief that the ability of the Pledgors and/or the   Company to perform this Agreement has been materially and adversely affected.
    

 

3

 

	
“Pledged Equities”:
    	
 
    	
means all the Company Equities lawfully owned by the   Pledgors on the date of this Agreement and pledged pursuant to this Agreement   to the Pledgee as security for the performance of the Contractual Obligations   (the specific equity interests pledged by the Pledgors are set out in   Schedule 1 to this Agreement) and any increased capital contributions/equity   interests and any share dividends under Sections 2.7 and 2.8 of this   Agreement.
    
	
 
    	
 
    	
 
    
	
“Pledge Right”:
    	
 
    	
means the right entitled to the Pledgee to be   indemnified in priority with the proceeds from conversion, auction or sales   of the equity interests pledged by the Pledgors to the Pledgee.
    
	
 
    	
 
    	
 
    
	
“PRC Laws”:
    	
 
    	
means the then effective laws, administrative   regulations, administrative rules, local regulations, judicial   interpretations and other binding regulatory documents of the People’s   Republic of China (for the purpose of this Agreement, excluding Hong Kong   Special Administrative Region, Macau Special Administrative Region and   Taiwan).
    

 

1.2                                        In this Agreement, any reference to any PRC Laws shall be deemed to include (i) a reference to such PRC Laws as modified, amended, supplemented or reenacted, effective before or after the date of this Agreement; and (ii) a reference to any other decisions, circulars or rules made pursuant to such PRC Laws or effective as a result of such PRC Laws.

 

1.3                                        Unless otherwise stated in the context of this Agreement, a reference to a provision, clause, section or paragraph shall refer to a corresponding provision, clause, section or paragraph of this Agreement.

 

2.                                               Equity Pledge

 

2.1                                        The Pledgors hereby agree to pledge, in accordance with the terms of this Agreement, their lawfully owned and disposable equity interests aggregately constituting 100% of the Company’s equity interests, to the Pledgee as joint and several security for the performance of the Contractual Obligations and the repayment of the Secured Indebtedness by the Pledgors and the Company.

 

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2.2                                        The Parties understand and agree that the currency valuation arising from or in connection with the Secured Indebtedness is changeable and fluctuating. Therefore, based on the reasonable assessment and valuation of the aforesaid Secured Indebtedness and Pledged Equities by the Pledgors and Pledgee, the Pledgors and the Pledgee jointly acknowledge and agree that the maximum amount of the Secured Indebtedness secured by the Pledged Equities held by each Pledgor shall be RMB2,392,696,380.1 (“Maximum Amount”). The Pledgors and Pledgee can from time to time adjust the Maximum Amount by making unanimous amendments and supplements to this Agreement based on the fluctuation of currency evaluation of the Secured Indebtedness and the Pledged Equities.

 

2.3                                        The Pledgors shall handle and complete the registration of the Pledged Equities under this Agreement with the competent industrial and commercial authority within ten (10) business days after the date of this Agreement, and shall complete the equity pledge registration and deliver the industrial and commercial registration certificate to the Pledgee within twenty (20) business days or other time agreed by the Parties after the date of this Agreement. The Pledge Right under this Agreement is created when the registration of the Pledged Equities with the industrial and commercial authority is completed.

 

2.4                                        The Pledgors shall deliver to the Pledgee the capital contribution certificate reflecting the pledge of the Pledged Equities pursuant to this Agreement on the date of this Agreement.

 

2.5                                        The Company shall, and the Pledgors shall procure the Company to, record the Pledged Equities in its shareholders’ register on the date of this Agreement and agree to deliver this sole shareholders’ register to the Pledgee. The Company shall not keep any other shareholders’ register.

 

2.6                                        During the term of this Agreement, the Pledgee shall not be liable in whatsoever manner for any decrease in the value of the Pledged Equities and the Pledgors are not entitled to seek any form of recourse or file any claims against the Pledgee, except where such decrease arises out of any willful conduct of the Pledgee or out of its gross negligence which has an immediate cause and effect with such decrease.

 

2.7                                        Upon occurrence of any Event of Default, the Pledgee shall be entitled to dispose of the Pledged Equities in such manner as prescribed in Section 4 of this Agreement.

 

2.8                                        The Pledgors shall not increase the capital of the Company, transfer or accept any Company Equities without prior consent of the Pledgee.

 

2.9                                        The Pledgors shall not receive any dividend, bonus or any other profit distribution in respect of the Pledged Equities without prior consent of the Pledgee. The Pledgors agree that the Pledgee is entitled to receive any dividend or bonus in respect of the Pledged Equities during the existence of the Pledged Equities. The Company shall pay such proceeds to an account designated by the Pledgee.

 

5

 

2.10                                 Any additional equity interest received by the Pledgors under Sections 2.8 and 2.9 in proportion to the Pledgors’ increased amount in the registered capital of the Company from any additional capital contribution to the Company, acquisition of equity interests of the Company, receipt of the Company’s share dividends or any other reasons shall be included in the Pledged Equities. The Pledgors and the Company shall execute applicable supplementary agreements and/or other documents after the Pledgors obtain such additional equity interests as soon as possible (no later than ten (10) business days after the Pledgors obtain such additional equity interests), and complete the following procedures:

 

a.                            completing the equity pledge registration of such additional equity interests within 20 business days after the execution of such supplementary agreements and/or other relevant documents, and delivering the industry and commerce registration certificate to the Pledgee;

 

b.                            delivering to the Pledgee the capital contribution certificate reflecting the pledge of such equity interests on the execution date of such supplementary agreements and/or other relevant documents;

 

c.                             delivering to the Pledgee the shareholders’ register recording the pledge of the equity interests in respect of such increased capital contributions on the execution date of such supplementary agreements and/or other relevant documents.

 

2.11                                 Subject to Section 2.6 above, if the Pledged Equities could experience material impairment which is capable to prejudice the rights of the Pledgee, the Pledgee may at any time auction or sell the Pledged Equities on behalf of the Pledgors and may, as agreed with the Pledgors, apply the proceeds from such auction or sale towards accelerated repayment of the Secured Indebtedness, or deposit such proceeds with a notary public at the place where the Pledgee is located (any costs thereby incurred shall be entirely borne by the Pledgee). In addition, the Pledgors shall provide other assets as security at the request of the Pledgee.

 

3.                                               Release of Pledge

 

3.1                                        After full and complete performance of all the Contractual Obligations and full repayment of all the Secured Indebtedness by the Pledgors and the Company, or all the Transaction Agreements have been terminated or invalidated, or the Contractual Obligations have been terminated due to legal requirements, the Pledgee shall, at the request of the Pledgors, release the equity pledge under this Agreement and cooperate with the Pledgors to deregister the equity pledge with competent industrial and commercial authority.

 

6

 

4.                                               Disposal of Pledged Equities

 

4.1                                        The Pledgors shall immediately give written notice to the Pledgee, if they know or ought to know any Event of Default which has already occurred or any situation which may trigger the Event of Default.

 

4.2                                        The Parties hereby agree that upon occurrence of any Event of Default, the Pledgee shall be entitled to exercise all rights and power to claim remedies available under the PRC Laws, the Transaction Agreements and this Agreement with written notice to the Pledgors, including without limitation the right to auction or sell the Pledged Equities and to be indemnified in priority with the proceeds thereof. The Pledgee shall not be held liable for any losses from its lawful and reasonable exercise of such rights and power.

 

4.3                                        The Pledgee shall be entitled to appoint in writing its legal advisor or any other agent to exercise any and all of its foregoing rights and power, to which the Pledgors shall not raise any objection.

 

4.4                                        The Pledgee shall be entitled to deduct all reasonable costs actually incurred in connection with its exercise of any or all of its aforesaid rights and power from the proceeds obtained from such exercise of rights and power.

 

4.5                                        The proceeds obtained from the exercise by the Pledgee of its rights and power shall be applied in the following order of precedence:

 

(i)                           payment of all costs arising out of the disposal of the Pledged Equities and the exercise by the Pledgee of its rights and power (including fees paid to its legal advisor and agent);

 

(ii)                        payment of the taxes payable in connection with the disposal of the Pledged Equities; and

 

(iii)                     repayment of the Secured Indebtedness to the Pledgee;

 

and any balance after the deduction of the aforesaid payments shall either be returned by the Pledgee to the Pledgors or any other person who is entitled to such balance under relevant laws and regulations or be deposited with a notary public at the place where the Pledgee is located (any costs thereby incurred shall be entirely borne by the Pledgee).

 

4.6                                        The Pledgee shall have the option to exercise concurrently or successively any of the remedies available to it; the Pledgee shall not be required to exhaust all other remedies available to it prior to auction or sale of the Pledged Equities under this Agreement.  No challenge shall be made by the Pledgors or the Company regardless of whether the Pledgee exercises any part of its Pledge Right or in respect of the order to exercise the Pledge Right by the Pledgee.

 

7

 

5.                                               Fees and Expenses

 

5.1                                        All costs and expenses actually incurred in connection with the creation of the equity pledge under this Agreement, including without limitation the stamp duty, any other taxes and all legal fees, shall be borne by the Pledgors.

 

6.                                               Continuity and No Waiver

 

6.1                                        The Pledged Equities shall be continuous security and shall remain valid until full performance of the Contractual Obligations, or termination or invalidation of all the Transaction Agreements, or termination due to legal requirements, or full repayment of the Secured Indebtedness (whichever is earliest). No waiver or grace period granted by the Pledgee to the Pledgors in respect of any breach or any delay by the Pledgee in exercising any of its rights under the Transaction Agreements and this Agreement shall affect the rights available to the Pledgee under this Agreement, applicable PRC Laws and the Transaction Agreements to demand at any time thereafter strict performance by the Pledgors of the Transaction Agreements and this Agreement, or any of the rights available to the Pledgee arising from any subsequent breach by the Pledgors of the Transaction Agreements and/or this Agreement.

 

7.                                               Representations and Warranties of the Pledgors and the Company

 

The Pledgors and the Company hereby represent and warrant to the Pledgee that:

 

7.1                                        They are natural persons with full civil capacity or a limited liability company lawfully incorporated and existing; they have full and independent legal status and legal capacity and the capacity to execute, deliver and perform this Agreement, and have been duly authorized to execute, deliver and perform this Agreement, and may act as an independent party to any lawsuit.

 

7.2                                        All reports, documents and information provided by the Pledgors and the Company to the Pledgee prior to the date of this Agreement with respect to the Pledgors, the Pledged Equities and all matters required by this Agreement are true and correct in all material respects as of the date of this Agreement.

 

7.3                                        All reports, documents and information provided by the Pledgors and the Company to the Pledgee after the date of this Agreement with respect to the Pledgors, the Pledged Equities and all matters required by this Agreement are true and valid in all material respects as of the date of such provision.

 

7.4                                        As of the date of this Agreement, the Pledgors are the lawful owners of the Pledged Equities free from any existing dispute in relation to the ownership thereof. The Pledgors have the right to dispose of the Pledged Equities or any part thereof.

 

8

 

7.5                                        Other than the security interests created on the Pledged Equities under this Agreement and the rights created under the Transaction Agreements, the Pledged Equities is free from any other security interests or third party rights and interests and any other restrictions. The Pledgors have not transferred or otherwise disposed of any Pledged Equities.

 

7.6                                        The Pledged Equities can be lawfully pledged and transferred, and the Pledgors have full rights and power to pledge the Pledged Equities to the Pledgee in accordance with the terms of this Agreement.

 

7.7                                        Any consents, permissions, waivers or authorizations by any third party or any approvals, licenses or exemptions by or any registration (except for the registration under Section 2.3) or filing formalities with any governmental body (if required by laws), required for the execution and performance of this Agreement and the equity pledge under this Agreement, have been obtained or effected and will remain in full force during the term of this Agreement.

 

7.8                                        The Pledgors and the Company have full power and authority to execute, deliver and perform this Agreement and all other documents to be executed by them/it in connection with the transactions contemplated in this Agreement as well as full power and authority to consummate the transactions contemplated in this Agreement. The execution and performance of this Agreement by the Pledgors and the Company do not violate or conflict with any law applicable to the Pledgors and/or the Company in effect, any agreement to which the Pledgors and/or the Company are a party or by which their assets are bound, any court judgment, any arbitral award, or any decision of any administrative authority. This Agreement is lawfully and duly executed and delivered by the Pledgors and the Company. This Agreement constitutes lawful and binding obligations of the Pledgors and the Company enforceable against them in accordance with the terms of this Agreement.

 

7.9                                        The pledge under this Agreement constitutes a first ranking security interest on the Pledged Equities.

 

7.10                                 All taxes and fees payable in connection with obtaining the Pledged Equities have been paid in full by the Pledgors and/or the Company.

 

7.11                                 There are no pending, or to the knowledge of the Pledgors or the Company threatened suits, arbitrations, or other legal proceedings or claims before any court or arbitral tribunal, or administrative proceedings, or other legal proceedings or claims before any governmental body or administrative authority against the Pledged Equities, the Pledgors or their properties, the Company or its assets, which will have a material or adverse effect on the economic conditions of the Pledgors or the Company or the Pledgors’ ability to perform their obligations and security liability under this Agreement.

 

7.12                                 The Pledgors and the Company hereby warrant to the Pledgee that the representations and warranties made under this Article 7 will remain true and correct and will be fully complied with under all circumstances prior to the full performance of the Contractual Obligations or the full repayment of the Secured Indebtedness.

 

9

 

8.                                               Undertakings by the Pledgors and the Company

 

The Pledgors and the Company hereby undertake to the Pledgee that:

 

8.1                                        Without prior written consent of the Pledgee, the Pledgors shall not create or permit to be created any new pledge or any other security interest or third party right on the Pledged Equities, and any pledge or other security interest or third party right created on all or part of the Pledged Equities without prior written consent of the Pledgee shall be null and void.

 

8.2                                        Except for the transfer of the Pledged Equities to the Pledgee or its designated person under the Exclusive Purchase Right Agreement (including any amendment, supplement or restatement thereto from time to time) executed on the date of this Agreement between the Pledgors and the Pledgee, without prior written notice to and prior written consent of the Pledgee, the Pledgors shall not transfer or otherwise dispose of all or part of the Pledged Equities (including direct or indirect transfer or disposal of the Pledged Equities or relevant rights and interests thereof (and if the Pledgors indirectly hold the Company Equities through any intermediary, they shall not in any manner transfer or dispose of their equity interests and rights and interests thereof in such intermediary, and shall ensure such intermediary will not issue equity interests to any third party)); otherwise all transfer or proposed transfer or disposal in any other manner of the Pledged Equities by the Pledgors shall be null and void. For transfer or disposal in any other manner of the Pledged Equities with written consent of the Pledgee, the proceeds hereby received shall be first applied towards accelerated repayment of the Secured Indebtedness to the Pledgee or being deposited with a third party agreed with the Pledgee.

 

8.3                                        Where any suits, arbitrations or other legal proceedings or claims arise (except those disputes, suits or arbitrations between the Pledgors and the Pledgee) which may have an adverse effect on the Pledgors’ or the Pledgee’s interests or the Pledged Equities under the Transaction Agreements and this Agreement, the Pledgors undertake that they will as soon as practicably and promptly send a written notice to the Pledgee and will, at the reasonable request of the Pledgee, take all necessary measures for the Pledgee to perfect its rights and interests upon the Pledged Equities.

 

8.4                                        The Pledgors and the Company will not conduct or permit to be conducted any act or action which is likely to have an adverse effect on the Pledgee’s interests or the Pledged Equities under the Transaction Agreements and this Agreement. The Pledgors shall waive their right of first refusal upon realization of the Pledge Right by the Pledgee.

 

10

 

8.5                                        The Pledgors and the Company undertake, at the reasonable request of the Pledgee, to take all measures and execute all documents (including without limitation any supplement to this Agreement) necessary for the Pledgee to own and perfect legally and contractually its rights and interests upon the Pledged Equities.

 

8.6                                        If there is any transfer of the Pledged Equities due to the lawful and contractual exercise of the Pledge Right under this Agreement, the Pledgors and the Company undertake to take all reasonable and lawful measures to realize such transfer.

 

8.7                                        The Pledgors and the Company shall ensure that the convening procedures, voting method and contents of the shareholders’ meeting and the meeting of the board of directors (if any) held for the execution of this Agreement, and the creation and exercise of the Pledge Right do not violate the laws, administrative regulations or the articles of association of the Company.

 

8.8                                        Without prior written consent of the Pledgee, the Pledgors shall not transfer any of their rights and obligations under this Agreement.

 

8.9                                        Subject to Section 8.2 of this Agreement, the Pledgors and the Company shall undertake that the representations and warranties in Section 7 made by the Pledgors to the Pledgee will remain true and correct and will be fully complied with under any circumstances at any time prior to the full performance of the Contractual Obligations or the full repayment of the Secured Indebtedness.

 

If, at any time, any promulgation of or amendment to any PRC Laws, regulations or rules, any change in the interpretation or application thereof, or any change in applicable registration procedures makes the Pledgors incapable to perform its representations and warranties made to the Pledgee in Sections 7.8 and 7.9, the Pledgors agree to perform Section 9.1 of this Agreement.

 

8.10                                 Upon occurrence of any Event of Default, if the Pledgors obtain any dividend, bonus or other profit distribution from the Company during the term of this Agreement, they agree to immediately and unconditionally grant such dividend, bonus or other profit distribution (net of any applicable taxes) to the Pledgee or any entity/individual designated by the Pledgee.

 

8.11                                 Upon occurrence of any Event of Default under which the Company shall be dissolved or liquidated pursuant to mandatory requirements of applicable laws, the Pledgors shall, to the extent permitted by the PRC Laws, grant to the Pledgee or any entity/individual designated by it any interests lawfully distributed from the Company (net of any applicable taxes) in accordance with applicable laws after such dissolution or liquidation of the Company.

 

11

 

9.                                               Change of Circumstance

 

9.1                                        As supplement to and without conflict with any other provision of the Transaction Agreements and this Agreement, if at any time any promulgation of or amendment to any PRC Laws, regulations or rules, or any change in the interpretation or application thereof, or any change in applicable registration procedures makes the Pledgee believe that maintaining the validity of this Agreement and/or disposal of the Pledged Equities in the manner prescribed in this Agreement becomes illegal or is in conflict with such laws, regulations or rules, the Pledgors shall effect internal procedures and obtain internal and external authorizations and approvals, in each case necessary to immediately take any actions and/or execute any agreements or other documents at the Pledgee’s written instructions and reasonable request, with the purpose of:

 

(i)                           maintaining the validity of this Agreement;

 

(ii)                        facilitating the disposal of the Pledged Equities in the manner prescribed under this Agreement; and/or

 

(iii)                     maintaining or realizing the security interest created or purported to be created under this Agreement.

 

10.                                        Effectiveness and Term of this Agreement

 

10.1                                 This Agreement shall be formed and become effective upon being signed/sealed by the Parties or their authorized representatives.

 

The Pledgors and the Company shall register the equity pledge under this Agreement with the competent industrial and commercial authority and provide the Pledgee with the equity pledge registration certificate in a form satisfactory to the Pledgee. The Pledgee shall provide full cooperation in connection therewith.

 

10.2                                 The term of this Agreement shall end when the Contractual Obligations are fully performed, or all the Transaction Agreements are terminated, invalid, or terminated due to legal requirements, or the Secured Indebtedness is fully repaid (whichever is the earliest shall prevail), unless otherwise agreed by the Parties.

 

11.                                        Notices

 

11.1                                 Any notice, request, demand and other correspondences required by or made pursuant to this Agreement shall be in writing and delivered to the applicable Party.

 

11.2                                 Notices under this Agreement shall be delivered in person, by facsimile or by registered post to the following addresses unless it is changed by written notifications. The delivery date of the notice shall be the receiving date on the receipt if delivered by registered post, or the date of delivering to the recipient if delivered in person or by facsimile. If delivered by facsimile, the original notice should be immediately sent to the addresses listed in Schedule 2 in person or by registered post after such delivery.

 

12

 

12.                                        Miscellaneous

 

12.1                                 The Pledgors and the Company agree that the Pledgee may, without prior notice to and without prior consent of the Pledgors and the Company, transfer its rights and/or obligations under this Agreement to any third party; however, neither the Pledgors nor the Company shall transfer their rights, obligations or liabilities under this Agreement to any third party without prior written consent of the Pledgee. The successor or permitted assign (if any) of the Pledgors and the Company shall be obligated to continue to perform the Pledgors’ and the Company’s respective obligations under this Agreement.

 

12.2                                 The amount of the Secured Indebtedness determined by the Pledgee at its discretion when exercising its right of pledge with respect to the Pledged Equities in accordance with the terms of this Agreement shall constitute the conclusive evidence for the Secured Indebtedness under this Agreement.

 

12.3                                 This Agreement is made in Chinese in fifteen (15) originals. Each Party shall hold one (1) original, and the remaining one (1) original shall be used for registration of the equity pledge with relevant industry and commerce administration. Other copies are used for relevant procedures. All originals shall have equal legal effect.

 

12.4                                 The entry into, effectiveness, performance, amendment, interpretation and termination of this Agreement shall be governed by the PRC Laws.

 

12.5                                 Any dispute arising out of or in connection with this Agreement shall be settled by the Parties through consultations and shall, in the absence of an agreement being reached by the Parties within thirty (30) days from its occurrence, be submitted by any Party to China International Economic and Trade Arbitration Commission (“CIETAC”) for arbitration in accordance with the then effective arbitration rules of CIETAC. The place of arbitration shall be Beijing and the language for arbitration shall be Chinese. The arbitration award shall be final and binding on the Parties to this Agreement.

 

12.6                                 No rights, power or remedies granted to each Party by any provision of this Agreement shall preclude any other rights, power or remedies enjoyed by such Party in accordance with the laws and any other provisions under this Agreement and no exercise by a Party of its rights, power and remedies shall preclude its exercise of its other rights, power and remedies.

 

13

 

12.7                                 No failure or delay by a Party in exercising any rights, power or remedies (“Such Rights”) pursuant to this Agreement or any laws shall operate as waiver of Such Rights; and no single or partial waiver of Such Rights shall preclude such Party from exercising Such Rights in any other manner or from exercising other Such Rights.

 

12.8                                 All the schedules listed in this Agreement constitute an integral part of this Agreement and have equal legal effect as the body text of this Agreement.

 

12.9                                 The headings in this Agreement are for convenience of reference only and shall in no event be used in or affect the interpretation of the provisions of this Agreement.

 

12.10                          Each provision contained in this Agreement shall be severable and independent from any other provisions of this Agreement, and if at any time any one or more provisions of this Agreement become invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

 

12.11                          Any amendments or supplements to this Agreement shall be made in writing, and shall take effect only if duly signed/sealed by the Parties of this Agreement.

 

12.12                          This Agreement shall be binding upon the lawful successors of the Parties.

 

[Intentionally left blank below]

 

14

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgee: Shanghai Jing Xue Rui Information and Technology Co., Ltd. (seal)

 

	
Signature:
    	
/s/ Meng Xiaoqiang
    	
 
    
	
 
    	
 
    	
 
    
	
Name: Meng   Xiaoqiang
    

 

Company: Shanghai OneSmart Education and Training Co., Ltd. (seal)

 

	
Signature:
    	
/s/ Zhang Xi
    	
 
    
	
 
    	
 
    	
 
    
	
Name: Zhang Xi
    

 

Position:

 

Pledgor:

 

Zhang Xi

 

	
Signature:
    	
/s/ Zhang Xi
    	
 
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Shanghai Ruidao Investment Center (Limited Partnership) (Seal)

 

	
Signature of   authorized representative: 
    	
/s/ Shen Tianhao
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Shanghai Yuming Investment Center (Limited Partnership) (Seal)

 

	
Signature of   authorized representative:
    	
/s/ Cao Shaojun
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Shanghai Shaojun Investment Center (Limited Partnership) (Seal)

 

	
Signature of   authorized representative:
    	
/s/ Cao Shaojun
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Shanghai Ruici Investment Center (Limited Partnership) (Seal)

 

	
Signature of authorized   representative:
    	
/s/ Meng Xiaoqiang
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Shanghai Ruiqiang Investment Center (Limited Partnership) (Seal)

 

	
Signature of   authorized representative: 
    	
/s/ Meng Xiaoqiang
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Hu Guozhi

 

	
Signature: 
    	
/s/ Hu Guozhi
    	
 
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Zheng Lina

 

	
Signature: 
    	
/s/ Zheng Lina
    	
 
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

	
Pledgor:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Wang Dongdong
    	
 
    	
Geng Xiaofei
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Wang Dongdong
    	
 
    	
Signature:
    	
/s/ Geng Xiaofei
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Wu Junbao
    	
 
    	
Li Ye
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Wu Junbao
    	
 
    	
Signature:
    	
/s/ Li Ye
    
	
 
    	
 
    	
 
    	
 
    
	
Bian   Jin
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Bian Jin
    	
 
    	
 
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Chen Guohe

 

	
Signature: 
    	
/s/ Chen Guohe
    	
 
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Chen Gang

 

	
Signature: 
    	
/s/ Chen Gang
    	
 
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Feng Juan

 

	
Signature: 
    	
/s/ Feng Juan
    	
 
    

 

Signature Page to Equity Pledge Agreement

 

 

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties as of the date first above written.

 

Pledgor:

 

Sha Ye

 

	
Signature:
    	
/s/ Sha Ye
    	
 
    

 

Signature Page to Equity Pledge Agreement

 

 

Schedule 1 Basic Information of the Company

 

Company Name: Shanghai OneSmart Education and Traning Co., Ltd.

 

Shareholding Structure:

 

	
Name of the Shareholder
    	
 
    	
Amount of Capital
   Contribution
   (RMB/Yuan)
    	
 
    	
Shareholding
   Percentage
    	
 
    
	
Zhang Xi
    	
 
    	
17,000,000
    	
 
    	
28.9300
    	
%
    
	
Hu Guozhi
    	
 
    	
1,968,645
    	
 
    	
3.3500
    	
%
    
	
Chen Gang
    	
 
    	
5,303,689
    	
 
    	
9.0256
    	
%
    
	
Chen Guohe
    	
 
    	
2,416,794
    	
 
    	
4.1128
    	
%
    
	
Feng Juan
    	
 
    	
235,049
    	
 
    	
0.4000
    	
%
    
	
Geng Xiaofei
    	
 
    	
7,381,291
    	
 
    	
12.5612
    	
%
    
	
Wang Dongdong
    	
 
    	
2,372,287
    	
 
    	
4.0371
    	
%
    
	
Wu Junbao
    	
 
    	
2,372,287
    	
 
    	
4.0371
    	
%
    
	
Li Ye
    	
 
    	
527,100
    	
 
    	
0.8970
    	
%
    
	
Bian Jin
    	
 
    	
527,100
    	
 
    	
0.8970
    	
%
    
	
Zheng Lina
    	
 
    	
13,180,065
    	
 
    	
22.4294
    	
%
    
	
Sha Ye
    	
 
    	
2,651,844
    	
 
    	
4.5128
    	
%
    
	
Shanghai Yuming Investment Center (Limited   Partnership)
    	
 
    	
645,558
    	
 
    	
1.0986
    	
%
    
	
Shanghai Shaojun Investment Center (Limited   Partnership)
    	
 
    	
450,000
    	
 
    	
0.7658
    	
%
    
	
Shanghai Ruidao Investment Center (Limited   Partnership)
    	
 
    	
350,000
    	
 
    	
0.5956
    	
%
    
	
Shanghai Ruici Investment Center (Limited   Partnership)
    	
 
    	
1,175,251
    	
 
    	
2.0000
    	
%
    
	
Shanghai Ruiqiang Investment Center (Limited   Partnership)
    	
 
    	
205,668
    	
 
    	
0.3500
    	
%
    
	
Total
    	
 
    	
58,762,528
    	
 
    	
100
    	
%
    

 

Schedule 1 to Equity Pledge Agreement

 

 

Schedule 2 Notice

 

Pledgee: Shanghai Jing Xue Rui Information and Technology Co., Ltd.

Registered Address: ***

Tel: ***

Recipient: Zhang Xi

 

The Company and the Pledgor Zhang Xi, Shanghai Yuming Investment Center (Limited Partnership), Shanghai Shaojun Investment Center (Limited Partnership), Shanghai Ruidao Investment Center (Limited Partnership), Shanghai Ruici Investment Center (Limited Partnership), Shanghai Ruiqiang Investment Center (Limited Partnership)

 

Domicile: ***

Tel: ***

Recipient: Zhang Xi

 

Pledgor: Hu Guozhi

Domicile: ***

Recipient: Hu Guozhi

 

Pledgor: Geng Xiaofei

Domicile: ***

Tel: ***

Recipient: Geng Xiaofei

 

Pledgor: Wang Dongdong

Domicile: ***

Tel: ***

Recipient: Wang Dongdong

 

Pledgor: Wu Junbao

Domicile: ***

Tel: ***

Recipient: Wu Junbao

 

Pledgor: Li Ye

Domicile: ***

Tel: ***

Recipient: Li Ye

 

Schedule 2 to Equity Pledge Agreement

 

 

Pledgor: Bian Jin

Domicile: ***

Tel: ***

Recipient: Bian Danyang

 

Pledgor: Zheng Lina

Domicile: ***

Recipient: Zheng Lina

 

Pledgor: Chen Gang

Domicile: ***

Tel: ***

Recipient: Chen Gang

 

Pledgor: Chen Guohe

Domicile: ***

Tel: ***

Recipient: Chen Guohe

 

Pledgor: Feng Juan

Domicile: ***

Recipient: Feng Juan

 

Pledgor: Sha Ye

Domicile: ***

Recipient: Sha Ye

 

Schedule 2 to Equity Pledge Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}]]