Document:

Exhibit 10.4

 

[English Translation]

 

Exclusive Purchase Right Agreement

 

This Exclusive Purchase Right Agreement (“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 (“Existing Shareholders”)

 

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

 

Registered Address:

 

Legal Representative: Meng Xiaoqiang

 

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

 

Registered Address:

 

Legal Representative: Fan Yaozu

 

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

 

WHEREAS:

 

(1)                                          The Existing Shareholders are the shareholders on record of the Company, aggregately holding 100% of the equity interests in the Company. Upon the execution date of this Agreement, their capital contributions to the registered capital of the Company and proportions of shareholding are set out in Schedule 1 to this Agreement.

 

(2)                                          To the extent not in contravention of the PRC Laws, the Existing Shareholders intend to transfer their entire equity interests in the Company to the WFOE and/or any other entity or individual designated by it, and the WFOE intends to accept such transfer.

 

(3)                                          To the extent not in contravention of the PRC Laws, the Company intends to transfer its assets to the WFOE and/or any other entity or individual designated by it, and the WFOE intends to accept such transfer.

 

(4)                                          For realization of the above equity transfer, the Existing Shareholders and the Company agree to grant, on an exclusive basis, to the WFOE an irrevocable option of equity transfer and an irrevocable option of asset purchase. In accordance with such options of equity transfer and asset purchase and to the extent permitted by the PRC Laws, the Existing Shareholders or the Company shall, at the request of the WFOE, transfer the Option Equity Interests (as defined below) or the Company Assets (as defined below) to the WFOE and/or any other entity or individual designated by it in accordance with this Agreement.

 

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THEREFORE, upon mutual discussions, the Parties agree as follows:

 

1.                                               Definitions

 

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

 

“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).

 

“Equity Transfer Option” means the option granted to the WFOE by the Existing Shareholders in accordance with the terms and conditions of this Agreement to request the acquisition of the equity interests in the Company.

 

“Asset Purchase Option” means the option granted to the WFOE by the Company in accordance with the terms and conditions of this Agreement to request the acquisition of any assets of the Company.

 

“Option Equity Interests” means, as to the Existing Shareholders, their equity interests aggregately representing 100% of the Registered Capital of the Company (as defined below).

 

“Registered Capital of the Company” means, as of the execution date of this Agreement, the registered capital of the Company in the amount of RMB5876.252800 million, including any augmentation thereof arising out of any form of capital increase during the term of the Agreement.

 

“Target Equity Interests” means the equity interests in the Company which the WFOE shall be entitled to request the Existing Shareholders to transfer to it or its designated entity or individual upon exercise of its Equity Transfer Option and in accordance with Section 3 of this Agreement. The Target Equity Interests can be either the whole or a part of the Option Equity Interests, the specific number of which will be determined by the WFOE at its sole discretion in light of the then PRC Laws and its own business considerations.

 

“Transferrable Assets” means the assets of the Company which the WFOE shall be entitled to request the Company to transfer to it or its designated entity or individual upon exercise of its Asset Purchase Option and in accordance with Section 3 of this Agreement. The Transferrable Assets can be either the whole or a part of the Company Assets, which will be specifically determined by the WFOE at its sole discretion in light of the then PRC Laws and its own business considerations.

 

“Exercise of Option” means the exercise by the WFOE of its Equity Transfer Option or its Asset Purchase Option.

 

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“Transfer Price” means, upon each Exercise of Option, the aggregate consideration payable by the WFOE or its designated entity or individual to the Existing Shareholders or the Company for the acquisition of the Target Equity Interests or the Transferrable Assets.

 

“Operation Permits” means any approval, permit, filing, registration or the like required to be held by the Company for its lawful and valid operation of all of its business, including without limitation the Enterprise Legal Person Business License, Tax Registration Certificate, Educational Permit and other relevant permits and licenses as may then be required by the PRC Laws.

 

“Company Assets” means all tangible and intangible assets owned or disposable by the Company during the term of this Agreement, including without limitation any immovable property, movable property, intellectual property such as trademarks, copyrights, patents, know-hows, domain names, software use rights and the like, and any investment rights and interests.

 

“Material Agreement” means any agreement to which the Company is a party having a material effect on the business or assets of the Company, including without limitation the Exclusive Technology and Consultation Service Agreement executed by and between the Company and the WFOE on the date of this Agreement, and other material agreements regarding the business of the Company.

 

“Exercise Notice” has the meaning ascribed to it in Section 3.8 of this Agreement.

 

“Confidential Information” has the meaning ascribed to it in Section 7.1 of this Agreement.

 

“Defaulting Party” has the meaning ascribed to it in Section 10.1 of this Agreement.

 

“Default” has the meaning ascribed to it in Section 10.1 of this Agreement.

 

“Such Rights” has the meaning ascribed to it in Section 11.5 of this Agreement.

 

1.2                                        In this Agreement, any reference to any PRC Laws shall be deemed to include:

 

(a)                                          a reference to such PRC Laws as modified, amended, supplemented or reenacted, effective before or after the date of this Agreement; and

 

(b)                                          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.

 

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2.                                               Granting of Equity Transfer Option

 

2.1                                        The Existing Shareholders hereby agree to irrevocably, unconditionally and exclusively grant the WFOE an Equity Transfer Option whereby the WFOE shall be entitled to request, to the extent permitted by the PRC Laws and in accordance with the terms and conditions of this Agreement, the Existing Shareholders to transfer the Option Equity Interests to the WFOE or its designated entity or individual. The WFOE also agrees to accept such Equity Transfer Option. The Existing Shareholders hereby waive their respective rights of first refusal regarding the equity interests in the Company under the articles of association of the Company and the PRC Laws, and hereby irrevocably agree that any shareholder of the Company can transfer the Option Equity Interests to the WFOE or its designated entity or individual.

 

2.2                                        The Company hereby agrees that the Existing Shareholders can grant such Equity Transfer Option to the WFOE pursuant to Section 2.1 above and other provisions of this Agreement.

 

2.3                                        The Company hereby agrees to irrevocably, unconditionally and exclusively grant the WFOE an Asset Purchase Option whereby the WFOE shall be entitled to request, to the extent permitted by the PRC Laws and in accordance with the terms and conditions of this Agreement, the Company to transfer any and part of the Company Assets to the WFOE or its designated entity or individual. The WFOE also agrees to accept such Asset Purchase Option.

 

2.4                                        The Existing Shareholders hereby severally and jointly agree that the Company can grant such Asset Purchase Option to the WFOE pursuant to Section 2.3 above and other provisions of this Agreement.

 

3.                                               Method of Exercise of Option

 

3.1                                        Subject to the terms and conditions of this Agreement, to the extent permitted by the PRC Laws, the WFOE is entitled to determine the specific timing, method and number of times of its Exercise of Option at its absolute discretion.

 

3.2                                        Subject to the terms and conditions of this Agreement, to the extent not in contravention of the then PRC Laws, the WFOE shall be entitled to request at any time the acquisition of all or part of the equity interests in the Company from the Existing Shareholders by itself or through other entity or individual designated by it.

 

3.3                                        Subject to the terms and conditions of this Agreement, to the extent not in contravention of the then PRC Laws, the WFOE shall be entitled to request at any time the acquisition of all or part of the Company’s assets from the Company by itself or through other entity or individual designated by it.

 

3.4                                        As for the Equity Transfer Option, upon each Exercise of Option, the WFOE shall be entitled to determine at its sole discretion the number of the equity interests to be transferred by the Existing Shareholders to the WFOE and/or other entity or individual designated by it during such Exercise of Option. The Existing Shareholders shall transfer to the WFOE and/or other entity or individual designated by it the Target Equity Interests in such number as requested by the WFOE. The WFOE and/or other entity or individual designated by it shall pay the Transfer Price regarding the Target Equity Interests acquired during each Exercise of Option to the Existing Shareholders transferring the Target Equity Interests.

 

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3.5                                        As for the Equity Transfer Option, upon each Exercise of Option, the WFOE may acquire the Target Equity Interests by itself or designate any third party to acquire all or part of such Target Equity Interests.

 

3.6                                        As for the Asset Purchase Option, upon each Exercise of Option, the WFOE shall be entitled to determine the specific Company Assets to be transferred by the Company to the WFOE and/or other entity or individual designated by it during such Exercise of Option. The Company shall transfer to the WFOE and/or other entity or individual designated by it such Transferrable Assets as requested by the WFOE. The WFOE and/or other entity or individual designated by it shall pay the Transfer Price regarding the Transferrable Assets acquired during each Exercise of Option to the Company.

 

3.7                                        As for the Asset Purchase Option, upon each Exercise of Option, the WFOE may acquire the Transferrable Assets by itself or designate at its discretion any qualified third party to acquire all or part of such Transferrable Assets.

 

3.8                                        Each time the WFOE decides to carry out its Exercise of Option, it shall give an Equity Transfer Option exercise notice to the Existing Shareholders or an Asset Purchase Option exercise notice to the Company (collectively “Exercise Notice”, the forms of which are set out in Schedules 3 and 4 to this Agreement). Upon receipt of an Exercise Notice, the Existing Shareholders or the Company shall, based on the Exercise Notice and in the way prescribed in Section 3.4 (applicable to the Equity Transfer Option) or Section 3.6 (applicable to the Asset Purchase Option) of this Agreement, immediately transfer all the Target Equity Interests or the Transferrable Assets to the WFOE and/or other entity or individual designated by it in the number prescribed in the Exercise Notice on a one-off basis.

 

4.                                               Transfer Price

 

4.1                                        As for the Equity Transfer Option, upon each Exercise of Option by the WFOE, the WFOE or its designated entity or individual shall pay to the Existing Shareholders the corresponding Transfer Price in accordance with the proportions of equity interests in the Company in respect of each such Exercise of Option and based on the minimum price permitted by the PRC Laws and regulations upon the Exercise of Option before requiring the Existing Shareholders to handle the registration with the industry and commerce administration related to the equity transfer. The Existing Shareholders agree that upon receipt of such Transfer Price, they shall, pursuant to the specific instructions of the WFOE, (i) repay the loans under the Loan Agreement executed by the Existing Shareholders and the WFOE on the same date of this Agreement (including any amendment, supplement or restatement thereto from time to time) with such Transfer Price, and/or (ii) return such Transfer Price to the WFOE or its designated person in a lawful manner.

 

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4.2                                        As for the Asset Purchase Option, upon each Exercise of Option by the WFOE, the WFOE or its designated entity or individual shall pay RMB1 (one) to the Company. If the minimum price permitted by the then PRC Laws is higher than the aforesaid price, the minimum price permitted by the PRC Laws shall prevail. The Company agrees that upon receipt of such Transfer Price, it shall, pursuant to the specific instructions of the WFOE, return such Transfer Price to the WFOE or its designated person in a lawful manner.

 

5.                                               Representations and Warranties

 

5.1                                        The Existing Shareholders and the Company hereby represent and warrant that (unless otherwise required in the context of this Agreement, such representations and warranties shall continue to be effective):

 

5.1.1                              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 sue or be sued as an independent party.

 

5.1.2                              They have the full power and authority to execute, deliver and perform this Agreement and all other documents to be executed by them 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 by them of this Agreement do not violate or conflict with any law applicable to them in effect, any agreement to which they are a party or by which their assets are bound, any court judgment, any arbitral award, or any decision of any administrative authority.

 

5.1.3                              This Agreement is lawfully and duly executed and delivered by them, and constitutes lawful and binding obligations enforceable against them in accordance with the terms of this Agreement.

 

5.1.4                              The Existing Shareholders are the lawful owners of the Option Equity Interests on record as of the date of this Agreement, other than the pledge created under the Equity Pledge Agreement (including any amendment, supplement or restatement thereto from time to time) executed by and among the WFOE and the Existing Shareholders on the same date of this Agreement and the proxy rights created under the Shareholders’ Voting Rights Agreement (including any amendment, supplement or restatement thereto from time to time) executed by and among the WFOE and the Existing Shareholders on the same date of this Agreement, the Option Equity Interests are free from any lien, pledge, claims and other security interests and third party rights. Pursuant to this Agreement, after the Exercise of Option, the WFOE and/or other entity or individual designated by it can obtain good title to the Target Equity Interests free from any lien, pledge, claims and other security interests or third party rights.

 

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5.1.5                              The Company Assets are free from any lien, pledge, claims and other security interests and third party rights. Pursuant to this Agreement, after the Exercise of Option, the WFOE and/or other entity or individual designated by it can obtain good title to the Company Assets free from any lien, pledge, claims and other security interests or third party rights.

 

5.1.6                              Unless under compulsory requirements of the PRC Laws and with prior written consent of the WFOE, the Existing Shareholders are not entitled to require the Company to declare distributions or actually effect distributions of any distributable profits, bonuses or dividends; if the Existing Shareholders gain any profits, bonuses or dividends from the Company after the execution of this Agreement, they shall timely grant them (after deduction of relevant taxes) to the WFOE or other qualified entity or individual designated by it to the extent permitted by the PRC Laws.

 

5.2                                        The WFOE hereby represents and warrants that:

 

5.2.1                              The WFOE is a wholly foreign-owned enterprise duly registered and lawfully existing under the PRC Laws with independent legal personality. The WFOE 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.

 

5.2.2                              The WFOE has full internal corporate power and authority to execute, deliver and perform 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 by it of this Agreement 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 asset is bound, any court judgment, any arbitral award, or any decision of any administrative authority. This Agreement constitutes legal and binding obligations enforceable against it in accordance with the terms of this Agreement.

 

6.                                               Undertakings by the Existing Shareholders

 

The Existing Shareholders hereby undertake that:

 

6.1                                        During the term of this Agreement:

 

6.1.1                              Without prior written consent of the WFOE, they shall not sell, transfer, pledge or otherwise dispose of, or permit to create any encumbrances on (including direct or indirect sale, transfer, pledge or disposal in any manner of the equity interests in the Company or relevant rights and interests thereof (and if the Existing Shareholders indirectly hold equity interests in the Company via intermediary holding companies, they shall not sell, transfer, pledge in any manner or otherwise dispose of their equity interests and rights and interests thereof in such intermediary holding company, and shall ensure such intermediary holding company will not issue equity interests to any third party)) any lawful or beneficial rights and interests of their equity interests in the Company at any time from the execution date of this Agreement, other than the pledge created on the equity interests in the Company under the Equity Pledge Agreement (including any amendment, supplement or restatement thereto from time to time) executed by and among relevant parties on the same date of this Agreement and the proxy rights created on the equity interests in the Company under the Shareholders’ Voting Rights Agreement (including any amendment, supplement or restatement thereto from time to time) executed by and among relevant parties on the same date of this Agreement;

 

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6.1.2                              Without prior written consent of the WFOE, they shall not, during the shareholders’ meeting of the Company, vote in favor of, support or execute any shareholders’ resolution to approve the sale, transfer, pledge or disposal in any manner of, or permit to create any encumbrances on, any lawful or beneficial rights and interests of any equity interests or assets, except those made to the WFOE or its designated entity or individual;

 

6.1.3                              Without prior written consent of the WFOE, they shall not in any manner agree, support or approve merger or consolidation of the Company with any other entity, merger or acquisition of the Company by any other entity, or investment by the Company in any entity, or split-up of the Company, change in the registered capital or the form of the Company;

 

6.1.4                              At the request of the WFOE, they shall immediately inform the WFOE of any actual or potential litigation, arbitration or administrative proceedings regarding their equity interests;

 

6.1.5                              Prior to the transfer of all Option Equity Interests to the WFOE, they shall execute all necessary or proper documents, take all necessary or proper actions, raise all necessary or proper claims of right, or raise all necessary or proper claims against claims of compensation so as to maintain the ownership of their equity interests;

 

6.1.6                              At the request of the WFOE, they shall appoint or engage the persons designated by the WFOE as directors and senior management of the Company;

 

6.1.7                              Without prior written consent of the WFOE, they shall not and shall not cause the management of the Company to dispose of any material Company Assets (other than that incurred in the ordinary course of business), or create any security interest or other third party rights on the material assets;

 

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6.1.8                              Without prior written consent of the WFOE, they shall not and shall not cause the management of the Company to terminate any Material Agreements entered into by the Company or enter into any other agreements in conflict with such existing Material Agreements;

 

6.1.9                              Without prior written consent of the WFOE, they shall not appoint or remove any directors, supervisors or other management members of the Company who shall be appointed and removed by the Existing Shareholders;

 

6.1.10                       Without prior written consent of the WFOE, they shall not cause the Company to declare distributions or actually effect distributions of any distributable profits, bonuses or dividends;

 

6.1.11                       They shall ensure that the Company will maintain its valid existence and will not be terminated, liquidated or dissolved without prior written consent of the WFOE;

 

6.1.12                       Without prior written consent of the WFOE, they shall not cause or agree that the Company makes amendments to its articles of association;

 

6.1.13                       Without prior written consent of the WFOE, they shall not cause or agree that the Company materially changes its business scope or terminates or suspends any current business;

 

6.1.14                       Without prior written consent of the WFOE, they shall ensure that the Company will not lend or borrow money (other than that required in the ordinary course of business), provide guarantee or any other form of security, or assume any substantial obligations beyond its ordinary course of business;

 

6.1.15                       Without prior written consent of the WFOE, they shall not cause or agree that the Company conducts any related party transaction with its direct or indirect shareholders, directors, supervisors, management or their respective related parties;

 

6.1.16                       Without prior written consent of the WFOE, they shall not conduct any action or non-action that will cause a conflict of interest between them and the Company or the WFOE;

 

6.1.17                       Without prior written consent of the WFOE, they shall not conduct any action or non-action which is likely to impair the assets or goodwill of the Company or affect the validity of the Operation Permits of the Company;

 

6.1.18                       They shall timely inform the WFOE of any circumstances to their knowledge which are likely to have a material adverse effect on the existence, business operation, financial conditions, assets or goodwill of the Company and shall timely take all measures acknowledged by the WFOE to eliminate such adverse circumstances or take effective remedies for such adverse circumstances;

 

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6.1.19                       Without prior written consent of the WFOE, they shall not cause or agree that the Company makes any material amendment to its accounting policy or changes its accountants;

 

6.1.20                       They shall strictly comply with all the provisions in this Agreement and other agreements jointly or separately executed by relevant parties, solidly perform all obligations under such agreements, and shall not conduct any action or non-action that will sufficiently affect the validity and enforceability of such agreements.

 

For the purpose of this Section 6.1, “Company” shall refer to the Company and all its subsidiaries (unless otherwise required by the context).

 

6.2                                        Upon the issuance of an Exercise Notice (subject to the circumstances under which the WFOE exercises its Equity Transfer Option or Asset Purchase Option) by the WFOE:

 

6.2.1                              The Existing Shareholders shall immediately take all necessary actions so as to (i) cause the Existing Shareholders to transfer all Target Equity Interests to the WFOE and/or other entity or individual designated by it at the Transfer Price and to waive any of their rights of first refusal (if any); or (ii) approve the transfer by the Company of all Transferrable Assets to the WFOE and/or other entity or individual designated by it at the Transfer Price;

 

6.2.2                              The Existing Shareholders shall (i) immediately execute equity transfer agreements with the WFOE and/or other entity or individual designated by it whereby they shall transfer all the Target Equity Interests to the WFOE and/or other entity or individual designated by it at the Transfer Price, and shall, in accordance with the request of the WFOE and the requirements of laws and regulations, provide the WFOE with necessary support (including causing the Company to hold a shareholders’ meeting to adopt a shareholders’ meeting resolution on such equity transfer and to provide and execute all relevant legal documents, to perform all governmental approval and registration formalities and assume all relevant obligations) so that the WFOE and/or other entity or individual designated by it can acquire all Target Equity Interests free from any legal defects and any security interest, third party restrictions created by the Existing Shareholders or any other restrictions, and the Existing Shareholders shall cooperate in and cause the completion of relevant registration with the industry and commerce administration and the update of shareholders’ register within thirty (30) days after the issuance of the Exercise Notice by the WFOE; or (ii) cause the Company to execute asset transfer agreements with the WFOE and/or other entity or individual designated by it whereby the Company shall transfer all the Transferrable Assets to the WFOE and/or other entity or individual designated by it at the Transfer Price, and shall, in accordance with the request of the WFOE and the requirements of laws and regulations, cause the shareholders to provide the WFOE with necessary support (including providing and executing all relevant legal documents, performing all governmental approval and registration formalities and assuming all relevant obligations) so that the WFOE and/or other entity or individual designated by it can acquire all the Transferrable Assets free from any legal defects and any security interest, third party restrictions or any other restrictions on the Company Assets.

 

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6.3                                        If the aggregate Transfer Price received by any of the Existing Shareholders in respect of his transferred equity interests exceeds his capital contributions to the Company, or if any of the Existing Shareholders receives profit distributions, dividends or bonuses in any form from the Company, such Existing Shareholder agrees to compensate the WFOE with the full amount of the Transfer Price obtained from such transferred equity interests and any received profit distributions, dividends or bonuses. Otherwise the Existing Shareholders shall compensate the WFOE and/or other entity or individual then designated by it for the losses thereby incurred.

 

7.                                               Undertakings by the Company

 

The Company hereby undertakes that:

 

7.1                                        During the term of this Agreement:

 

7.1.1                              Without prior written consent of the WFOE, it shall not conduct or permit the Existing Shareholders’ sale, transfer, pledge or disposal in other manner of, or permit the Existing Shareholders to create any encumbrances on any lawful or beneficial rights and interests of the equity interests in the Company, other than the pledge created on the equity interests of the Company under the Equity Pledge Agreement (including any amendment, supplement or restatement thereto from time to time) executed by and among relevant parties on the same date of this Agreement and the proxy rights created on the equity interests of the Company under the Shareholders’ Voting Rights Proxy Agreement (including any amendment, supplement or restatement thereto from time to time) executed by and among relevant parties on the same date of this Agreement;

 

7.1.2                              Without prior written consent of the WFOE, it shall not execute any shareholders’ resolution to approve the sale, transfer, pledge or disposal in any manner of any lawful or beneficial interests of the equity interests or assets owned by the Company, or permit to create any encumbrances on any equity interests or assets in the Company, except those made to the WFOE or its designated entity or individual;

 

7.1.3                              Without prior written consent of the WFOE, it shall not merge or consolidate with any other entity, be merged or acquired by any other entity, make investment in any other entity, be demerged, or make change to the registered capital or the form of the Company;

 

7.1.4                              It shall immediately inform the WFOE of any actual or potential litigation, arbitration or administrative proceedings regarding the equity interests of the Existing Shareholders;

 

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7.1.5                              Prior to the transfer of all Option Equity to the WFOE by the Existing Shareholders, it shall cooperate to execute all necessary or proper documents, to take all necessary or proper actions, to raise all necessary or proper claims of right, or to raise all necessary or proper claims against claims of compensation so as to maintain the Existing Shareholders’ ownership of their equity interests;

 

7.1.6                              At the request of the WFOE, it shall approve the Existing Shareholders’ appointment or engagement of the persons designated by the WFOE as directors and senior management of the Company;

 

7.1.7                              Without prior written consent of the WFOE, it shall not and shall not cause the management of the Company to dispose of any material Company Assets (other than that incurred in the ordinary course of business), or create any security interest or other third party rights on any Company Assets;

 

7.1.8                              Without prior written consent of the WFOE, it shall not and shall not cause the management of the Company to terminate any Material Agreement entered into by the Company or enter into any other agreements in conflict with such existing Material Agreements;

 

7.1.9                              Without prior written consent of the WFOE, it shall not cause the Company to declare distributions or actually effect distribution of any distributable profits, bonuses or dividends;

 

7.1.10                       It shall ensure that the Company will maintain its valid existence and will not be terminated, liquidated or dissolved without prior written consent of the WFOE;

 

7.1.11                       Without prior written consent of the WFOE, it shall not amend its articles of association;

 

7.1.12                       Without prior written consent of the WFOE, it shall not materially change its business scope or terminate or suspend any current business;

 

7.1.13                       Without prior written consent of the WFOE, it shall not lend or borrow money (other than that required in the ordinary course of business), provide guarantee or any other form of security, or assume any material obligations beyond its ordinary course of business;

 

7.1.14                       Without prior written consent of the WFOE, it shall not cause or agree that the Company conducts any related party transaction with its direct or indirect shareholders, directors, supervisors, management or their respective related parties;

 

7.1.15                       Without prior written consent of the WFOE, it shall not conduct any action or non-action that will cause an conflict of interest between it and the WFOE;

 

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7.1.16                       Without prior written consent of the WFOE, it shall not conduct any action or non-action which is likely to impair the assets or goodwill of the Company or affect the validity of the Operation Permits of the Company;

 

7.1.17                       It shall timely inform the WFOE of any circumstances to its knowledge which are likely to have a material adverse effect on the existence, business operation, financial condition, assets or goodwill of the Company and shall timely take all measures acknowledged by the WFOE to eliminate such adverse circumstances or take effective remedies for such adverse circumstances;

 

7.1.18                       Without prior written consent of the WFOE, it shall not make any material amendment to its accounting policy or change its accountants;

 

7.1.19                       Without prior written consent of the WFOE, it shall not conduct or permit to be conducted any act or action which is likely to have an adverse effect on the interests of the WFOE under this Agreement, including without limitation any act or action restricted by Section 6.1;

 

7.1.20                       It shall strictly comply with all the provisions in this Agreement and other agreements jointly or separately executed by relevant parties, solidly perform all obligations under such agreements, and shall not conduct any action or non-action that will sufficiently affect the validity and enforceability of such agreements.

 

For the purpose of this Section 7.1, “Company” shall refer to the Company and all its subsidiaries (unless otherwise required by the context).

 

7.2                                        If the execution and performance of this Agreement and the granting of the Equity Transfer Option or Asset Purchase Option under this Agreement require any third party consent, permit, waiver, authorization, or any governmental approval, permit, exemption, or any registration or filing formalities with any governmental authority (if required by law), the Company shall exert every effort to assist in the satisfaction of the above conditions.

 

7.3                                        Upon the issuance of an Exercise Notice (subject to the circumstances under which the WFOE exercises its Equity Transfer Option or Asset Purchase Option) by the WFOE:

 

7.3.1                              The Company shall and shall cause the Existing Shareholders to immediately take all necessary actions, (i) to cause the Existing Shareholders to transfer all Target Equity Interests to the WFOE and/or other entity or individual designated by it at the Transfer Price and to waive any of their rights of first refusal (if any); or (ii) to enable the Company to transfer all Transferrable Assets to the WFOE and/or other entity or individual designated by it at the Transfer Price;

 

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7.3.2                              The Company shall (i) and shall cause the Existing Shareholders to immediately execute equity transfer agreements with the WFOE and/or other entity or individual designated by it whereby they shall transfer all the Target Equity Interests to the WFOE and/or other entity or individual designated by it at the Transfer Price, and they shall, in accordance with the request of the WFOE and the requirements of laws and regulations, provide the WFOE with necessary support (including causing the Company to hold a shareholders’ meeting to adopt a shareholders’ meeting resolution on such equity transfer and to provide and execute all relevant legal documents, to perform all governmental approval and registration formalities and assume of all relevant obligations) so that the WFOE and/or other entity or individual designated by it can acquire all Target Equity Interests free from any legal defects and any security interest, third party restrictions created by the Existing Shareholders or any other restrictions, and the Company shall and shall cause the Existing Shareholders to cooperate in and cause the completion of relevant registration with the industry and commerce administration and the update of shareholders’ register within thirty (30) days after the issuance of the Exercise Notice by the WFOE; or (ii) execute asset transfer agreements with the WFOE and/or other entity or individual designated by it whereby the Company shall transfer all the Transferrable Assets to the WFOE and/or other entity or individual designated by it at the Transfer Price, and shall, in accordance with the request of the WFOE and the requirements of laws and regulations, cause the shareholders to provide the WFOE with necessary support (including providing and executing all relevant legal documents, performing all governmental approval and registration formalities and assuming all relevant obligations) so that the WFOE and/or other entity or individual designated by it can acquire all the Transferrable Assets free from any legal defects and any security interest, third party restrictions or any other restrictions on the Company Assets.

 

8.                                               Confidentiality Obligations

 

8.1                                        During the term of this Agreement and after the termination of this Agreement, the Parties shall maintain in strict confidence the business secrets, exclusive information, customer information and any other information with confidential nature regarding other Parties obtained during the entry into and performance of this Agreement (“Confidential Information”). Except where prior written consent has been obtained from the Party disclosing the Confidential Information or where disclosure to a third party is mandated by relevant laws or regulations or by the requirements of the listing place of a Party’s affiliate, 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 shall not disclose any Confidential Information to any other third party; the Party receiving the Confidential Information shall not directly or indirectly use any Confidential Information other than for the purpose of performing this Agreement.

 

14

 

8.2                                        The following information shall not constitute Confidential Information:

 

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

 

(b)                                          any information that enters the public domain not due to the fault of the receiving Party; or

 

(c)                                           any information lawfully acquired by the receiving Party from other sources after the receipt of relevant information.

 

8.3                                        A 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 execute confidentiality agreements or relevant commitment letters with the aforesaid persons to ensure that such persons shall comply with relevant terms and conditions of this Agreement or (as for any lenders (including the agents or trustees of the lenders) or the financing arrangers) the terms and conditions of the separately executed confidentiality agreements, and the receiving Party shall assume any liability arising out of the breach by the aforesaid persons of such relevant terms and conditions.

 

8.4                                        Notwithstanding any other provisions of this Agreement, the validity of this section shall not be affected by any termination of this Agreement.

 

9.                                               Term of Agreement

 

9.1                                        This Agreement shall become effective after being executed/sealed by the Parties to this Agreement or their authorized representatives. This Agreement shall be terminated after all the Option Equity Interests and the Company Assets have been transferred to the WFOE and/or other entity or individual designated by it in accordance with relevant laws and pursuant to this Agreement unless otherwise agreed by the Parties.

 

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 addresses listed in Schedule  2 in person or by registered post after such delivery.

 

15

 

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 or delays in performing 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 the Existing Shareholders are the Defaulting Party, the WFOE shall be entitled to terminate this Agreement and request the Defaulting Party to indemnify for damages, or to request the Defaulting Party to continue to perform its obligations under this Agreement and to request the Defaulting Party to indemnify for all the damages;

 

11.1.2                       If the WFOE is the Defaulting Party, the non-defaulting Party shall be entitled to request the Defaulting Party to indemnify for damages, unless otherwise stipulated by laws or agreed by the Parties, 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 shall not be affected by any termination of this Agreement.

 

12.                                        Miscellaneous

 

12.1                                 Any approval, instruction, demand, notice, exercise or waiver of any right, or other action of the WFOE shall be made in writing and attached with the resolutions of relevant shareholders’ meeting, board of directors or similar decision-making body of such company’s offshore indirect holding company (ONESMART EDUCATION GROUP LIMITED) to internally approve such issue (if such issue is among those requiring the approval of shareholders, board of directors or other similar decision-making body according to the articles of association of ONESMART EDUCATION GROUP LIMITED).

 

12.2                                 This Agreement is made in Chinese in fourteen (14) originals and each Party to this Agreement shall hold one (1) copy.

 

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

 

12.4                                 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.

 

16

 

12.5                                 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 any 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.

 

12.6                                 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.

 

12.7                                 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.

 

12.8                                 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.

 

12.9                                 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.

 

12.10                          This Agreement shall replace upon its execution any other legal documents on the same subject previously executed by the Parties. 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 the WFOE, the Existing Shareholders and the Company shall not revoke the Equity Transfer Option or Asset Purchase Option under this Agreement or terminate this Agreement. Notwithstanding the aforesaid, the WFOE can at any time terminate this Agreement by sending a written notice to the Existing Shareholders and the Company thirty (30) days in advance.

 

12.11                          Without prior written consent of the WFOE, the Existing Shareholders or the Company shall not transfer any of their rights and/or obligations under this Agreement to any third party. The Shareholders and the Company hereby agree that the WFOE is entitled to transfer any of its rights and/or obligations under this Agreement to any third party without prior notice to or consent of relevant shareholders or the Company.

 

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

 

[Intentionally left blank below]

 

17

 

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

 

WFOE: 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:
    	
 
    	
 
    
	
 
    	
 
    
	
Existing Shareholder:
    	
 
    
	
 
    	
 
    
	
Zhang   Xi
    	
 
    
	
 
    	
 
    
	
Signature: 
    	
/s/ Zhang Xi
    	
 
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Shanghai Ruidao Investment Center (Limited Partnership) (Seal)

 

	
Signature of   authorized representative: 
    	
/s/ Shen Tianhao
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Shanghai Yuming Investment Center (Limited Partnership) (Seal)

 

	
Signature of   authorized representative: 
    	
/s/ Cao Shaojun
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Shanghai Shaojun Investment Center (Limited Partnership) (Seal)

 

	
Signature of   authorized representative: 
    	
/s/ Cao Shaojun
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Shanghai Ruici Investment Center (Limited Partnership) (Seal)

 

	
Signature of   authorized representative: 
    	
/s/ Meng Xiaoqiang
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Shanghai Ruiqiang Investment Center (Limited Partnership) (Seal)

 

	
Signature of   authorized representative: 
    	
/s/ Meng Xiaoqiang
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Hu Guozhi

 

	
Signature: 
    	
/s/ Hu Guozhi
    	
 
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Zheng Lina

 

	
Signature: 
    	
/s/ Zheng Lina
    	
 
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

	
Existing Shareholder:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
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 Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Chen Guohe

 

	
Signature: 
    	
/s/ Chen Guohe
    	
 
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Chen Gang

 

	
Signature: 
    	
/s/ Chen Gang
    	
 
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Feng Juan

 

	
Signature: 
    	
/s/ Feng Juan
    	
 
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

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

 

Existing Shareholder:

 

Sha Ye

 

	
Signature: 
    	
/s/ Sha Ye
    	
 
    

 

Signature Page to Exclusive Purchase Right Agreement

 

 

Schedule 1 Basic Information of the Company

 

Company Name: Shanghai OneSmart Education and Training 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 Exclusive Purchase Right Agreement

 

 

Schedule 2 Notice

 

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

Registered Address:

Tel:

Recipient: Zhang Xi

 

The Company and the Existing Shareholders 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), and Shanghai Ruiqiang Investment Center (Limited Partnership)

 

Domicile:

Tel:

Recipient: Zhang Xi

 

Existing Shareholder: Hu Guozhi

Domicile:

Recipient: Hu Guozhi

 

Existing Shareholder: Geng Xiaofei

Domicile:

Tel:

Recipient: Geng Xiaofei

 

Existing Shareholder: Wang Dongdong

Domicile:

Tel:

Recipient: Wang Dongdong

 

Existing Shareholder: Wu Junbao

Domicile:

Tel:

Recipient: Wu Junbao

 

Existing Shareholder: Li Ye

Domicile:

Tel:

Recipient: Li Ye

 

Schedule 2 to Exclusive Purchase Right Agreement

 

 

Existing Shareholder: Bian Jin

Domicile:

Tel:

Recipient: Bian Danyang

 

Existing Shareholder: Zheng Lina

Domicile:

Recipient: Zheng Lina

 

Existing Shareholder: Chen Gang

Domicile:

Tel:

Recipient: Chen Gang

 

Existing Shareholder: Chen Guohe

Domicile:

Tel:

Recipient: Chen Guohe

 

Existing Shareholder: Feng Juan

Domicile:

Recipient: Feng Juan

 

Existing Shareholder: Sha Ye

Domicile:

Recipient: Sha Ye

 

Schedule 2 to Exclusive Purchase Right Agreement

 

 

Schedule 3:

 

Form of Exercise Notice of Equity Transfer Option

 

To: [Name of the Existing Shareholder]

 

WHEREAS, pursuant to the Exclusive Purchase Right Agreement (“Option Agreement”) dated [ ] [ ], 2017 by and among us, you and Shanghai OneSmart Education and Training Co., Ltd. (“Company”), to the extent permitted by PRC laws and regulations, you shall, at our request, transfer your equity interests in the Company to us or any third party designated by us.

 

NOW, THEREFORE, we hereby notify you of the following:

 

We hereby offer to exercise our Equity Transfer Option under the Option Agreement whereby we or [name of entity or individual] designated by us shall acquire your [ ] % equity interests in the Company (“Subject Equity Interests”). You are kindly required to transfer all of the Subject Equity Interests to us or [name of designated entity or individual] and complete the necessary registration with the industry and commerce administration or other formalities in accordance with the Option Agreement immediately upon receipt of this notice.

 

Sincerely yours,

 

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

 

	
Authorized   Representative: 
    	
 
    	
 
    

 

Date:

 

Schedule 3 to Exclusive Purchase Right Agreement

 

 

Schedule 4:

 

Form of Exercise Notice of Asset Purchase Option

 

To: Shanghai OneSmart Education and Training Co., Ltd.

 

WHEREAS, pursuant to the Exclusive Purchase Right Agreement (“Option Agreement”) dated [ ] [], 2017 by and among us, you and Zhang Xi, Hu Guozhi, Chen Gang, Chen Guohe, Feng Juan, Geng Xiaofei, Wang Dongdong, Wu Junbao, Li Ye, Bian Jin, Zheng Lina, Sha Ye, 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), to the extent permitted by PRC laws and regulations, you shall, at our request, transfer your assets to us or any third party designated by us.

 

NOW, THEREFORE, we hereby notify you of the following:

 

We hereby offer to exercise our Asset Purchase Option under the Option Agreement whereby we or [name of entity or individual] designated by us shall acquire from you all the assets as separately set out in the list attached to this Agreement (“Subject Assets”). You are kindly required to transfer all the Subject Assets to us or [name of entity or individual] designated by us and complete the necessary registration or other formalities (if any) in accordance with the provisions of the Option Agreement immediately upon receipt of this notice.

 

Sincerely yours,

 

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

 

	
Authorized   Representative:
    	
 
    	
 
    

 

Date:

 

Schedule 4 to Exclusive Purchase Right AgreementExhibit 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.

 

2

 

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.

 

3

 

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.

 

4

 

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 Representative

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