Document:

Exhibit 4.35

	
 
    	
 
    

 

REGISTRATION RIGHTS AGREEMENT

 

between

 

AMBOW EDUCATION HOLDING LTD.

 

and

 

SUMMITVIEW INVESTMENT FUND I, L.P.

 

 

Dated May 31, 2013

 

	
 
    	
 
    

 

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
 
    	
 
    
	
Section 1 DEFINITIONS
    	
1
    
	
 
    	
 
    
	
Section 2 GENERAL; SECURITIES SUBJECT TO THIS AGREEMENT
    	
4
    
	
 
    	
 
    
	
Section 3 MANDATORY REGISTRATION
    	
4
    
	
 
    	
 
    
	
Section 4 DEMAND REGISTRATION RIGHTS
    	
5
    
	
 
    	
 
    
	
Section 5 INCIDENTAL OR “PIGGY-BACK” REGISTRATION
    	
5
    
	
 
    	
 
    
	
Section 6 UNDERWRITTEN OFFERINGS
    	
7
    
	
 
    	
 
    
	
Section 7 REGISTRATION PROCEDURES
    	
9
    
	
 
    	
 
    
	
Section 8 INDEMNIFICATION; CONTRIBUTION
    	
13
    
	
 
    	
 
    
	
Section 9 COVENANTS
    	
16
    
	
 
    	
 
    
	
Section 10 MISCELLANEOUS
    	
16
    

 

 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) made on May 31, 2013

 

BETWEEN:

 

(1)                       AMBOW EDUCATION HOLDING LTD., an exempted company incorporated with limited liability under the laws of the Cayman Islands (the “Company”); and

 

(2)                       SUMMITVIEW INVESTMENT FUND I, L.P., a limited partnership organized under the laws of the Cayman Islands (the “Investor”).

 

Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in Section 1 hereof.

 

RECITALS:

 

(A)                     WHEREAS, pursuant to a Share Purchase Agreement dated as of April 28, 2013 (as amended, the “Purchase Agreement”) by and between the Company and SummitView Investment Limited, and Amendment to Share Purchase Agreement dated as of May 24, 2013 by and between the Company, SummitView Investment Limited and the Investor, the Company has agreed to sell to the Investor 36,668,009 Shares (the “Sale Shares”).

 

(B)                     WHEREAS, in connection therewith, and in order to induce the Investor to purchase the Sale Shares, the Company desires to and has agreed to grant to the Investor the demand and other registration rights set forth herein.

 

(C)                     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows.

 

AGREEMENT:

 

SECTION 1

DEFINITIONS

 

1.1.                  Definitions. As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated:

 

“Affiliate” of a Person (the “Subject Person”) means any other Person that directly or indirectly Controls, is Controlled by or is under common Control with the Subject Person.

 

“Agreement” means this Agreement as the same may be amended, supplemented or modified in accordance with the terms hereof.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in the PRC, Hong Kong or New York City are required or authorized by law or executive order to be closed.

 

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“Company Charter Documents” means the memorandum and articles of association of the Company, as may be amended from time to time.

 

“Company” has the meaning set forth in the preamble to this Agreement.

 

“Company Underwriter” has the meaning set forth in Section 5.1.

 

“Completion Date” has the meaning set forth in the Purchase Agreement.

 

“Control” of a Person means (a) ownership of more than fifty percent (50%) of the shares in issue or other equity interests or registered capital of such Person or (b) the power to direct the management or policies of such Person, whether through ownership or voting proxy of the voting power of such Person, through the power to appoint a majority of the members of the board of directors or similar governing body of such Person, through contractual arrangements or otherwise.

 

“Demand Request” has the meaning set forth in Section 4.1.

 

“Designated Holder” means the Investor and any permitted transferee of the Investor to whom Registrable Securities have been transferred, other than a transferee to whom Registrable Securities have been transferred pursuant to a Registration Statement under the Securities Act or Rule 144 or Regulation S under the Securities Act (or any successor rules thereto), but in each case solely for so long as the Investor or transferee continues to be a holder of Registrable Securities.

 

“Electing Holders” has the meaning set forth in Section 6.1.

 

“Effectiveness Period” has the meaning set forth in Section 3.2.

 

“Equity Securities” means, with respect to any Person, such Person’s shares, capital stock, membership interests, partnership interests, registered capital, joint venture or other ownership interests or any options, warrants or other securities that are directly or indirectly convertible into, or exercisable or exchangeable for, such shares, membership interests, partnership interests, registered capital or joint venture or other ownership interests (whether or not such derivative securities are issued by such Person). Unless the context otherwise requires, any reference to “Equity Securities” refers to the Equity Securities of the Company.

 

“Exchange Act” means the US Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC thereunder.

 

“FINRA” means the Financial Industry Regulatory Authority (or any successor entity thereto).

 

“Governmental Authority” means any government or political subdivision thereof; any department, agency or instrumentality of any government or political subdivision thereof; any court or arbitral tribunal; and the governing body of any securities exchange or other self-regulatory body, whether domestic or foreign.

 

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“Holders’ Counsel” has the meaning set forth in Section 7.1(a).

 

“Incidental Registration” has the meaning set forth in Section 5.1.

 

“Indemnified Party” has the meaning set forth in Section 8.3.

 

“Indemnifying Party” has the meaning set forth in Section 8.3.

 

“Investor” has the meaning set forth in the preamble to this Agreement.

 

“Inspector” has the meaning set forth in Section 6.2(b).

 

“Liability” has the meaning set forth in Section 8.1.

 

“Majority Interest” means the Designated Holders holding at least a majority of the then-outstanding Registrable Securities.

 

“Other Shareholders” has the meaning set forth in Section 5.1.

 

“Participating Holder” has the meaning set forth in Section 6.1.

 

“Person” means any natural person, firm, company, Governmental Authority, joint venture, partnership, association or other entity (whether or not having separate legal personality).

 

“Purchase Agreement” has the meaning set forth in the recitals to this Agreement.

 

“Records” has the meaning set forth in Section 6.2(b).

 

“Registrable Securities” means (i) any Sale Shares; and (ii) any other Shares issued or issuable in respect of the shares described in subsection (i) above (because of stock splits, stock dividends, combination of shares, reclassifications, recapitalizations, mergers, consolidations or other reorganization or similar events and any Shares issuable upon conversion, exercise or exchange thereof). As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (i) a Registration Statement covering such Registrable Securities has been declared effective under the Securities Act by the SEC and such Registrable Securities have been disposed of pursuant to such effective Registration Statement, (ii) the entire amount of the Registrable Securities owned by a Designated Holder may be sold in one transaction without any limitation as to volume pursuant to Rule 144 (or any successor provision then in effect) under the Securities Act in the opinion of counsel satisfactory to the Company and such Designated Holder, each in their reasonable judgment or (iii) such Registrable Securities have been sold pursuant to Rule 144 under the Securities Act.

 

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“Registration Expenses” has the meaning set forth in Section 7.3.

 

“Registration Statement” means a registration statement filed pursuant to the Securities Act.

 

“Required Filing Date” has the meaning set forth in Section 3.1.

 

“SEC” means the United States Securities and Exchange Commission or any similar or successor agency then having jurisdiction to enforce the Securities Act.

 

“Securities Act” means the US Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“Shares” means Class A Ordinary Shares of the Company, par value US$0.0001 per share.

 

“Shelf Registration Statement” has the meaning set forth in Section 3.1.

 

“Staff” means the staff of the SEC.

 

SECTION 2
 GENERAL; SECURITIES SUBJECT TO THIS AGREEMENT

 

2.1.                  Grant of Rights. The Company hereby grants registration rights to the Designated Holders upon the terms and conditions set forth in this Agreement.

 

2.2.                  Conditions for Exercise of Rights. Notwithstanding anything to the contrary herein, the Designated Holders may not exercise the registration rights granted under this Agreement if Form F-3 may not be used by the Company pursuant to applicable law.

 

SECTION 3
 MANDATORY REGISTRATION

 

3.1.                  Shelf Registration Statement. Subject to Section 2.2, not later than sixty (60) days after the Investor written demand (such 60th day, the “Required Filing Date”), the Company shall file with the SEC a registration statement pursuant to Rule 415 of the Securities Act (a “Shelf Registration Statement”) on Form F-3 (or any successor form thereto), with respect to the resale, from time to time, of all of the Registrable Securities held by the Designated Holders, provided that such demand is with respect to at least 5,000,000 of such Registrable Securities. The disposition of Registrable Securities from the Shelf Registration Statement may occur, at any time, in one or more underwritten offerings, block transactions, broker transactions, at-market transactions or in such other manner or manners as may be specified by the applicable Designated Holders.

 

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3.2.                            Effective Shelf Registration Statement. The Company shall use its commercially reasonable efforts to cause the Shelf Registration Statement to become effective as soon as practicable, and shall use its commercially reasonable efforts to keep the Shelf Registration Statement continuously effective under the Securities Act, subject to the provisions of Section 7.4, until the earlier of (i) such time as all Registrable Securities registered thereunder are eligible for sale by a Designated Holder in the open market in a single transaction pursuant to Rule 144 of the Securities Act (or any similar provision then in force) without being subject to the volume limitations thereof or (ii) all Registrable Securities covered by such Shelf Registration Statement have been sold pursuant to such Shelf Registration Statement or pursuant to Rule 144 or otherwise pursuant an applicable exemption from the registration requirements of the Securities Act (such period being the “Effectiveness Period”).

 

3.3.                            Expenses. The Company shall bear all Registration Expenses in connection with this Section 3, whether or not the Shelf Registration Statement becomes effective.

 

SECTION 4
 DEMAND REGISTRATION RIGHTS

 

4.1.                            If, at any time after the Required Filing Date and prior to the expiration of the Effectiveness Period, (i) (A) additional Registrable Securities, which have not been included in the Shelf Registration Statement of the Company pursuant to Section 3.1 above, are issued or issuable to, or otherwise acquired by, the Designated Holder or its Affiliates or (B) a Registration Statement covering the sale of all of the Registrable Securities is not then effective and available for sales thereof by the Designated Holder, and (ii) the Company receives from the Designated Holder a written request (the “Demand Request”) stating that such Designated Holder is likely to be considered an Affiliate of the Company and requesting that the Company effect a registration with respect to at least 5,000,000 of such Registrable Securities (which request shall state the number of shares of Registrable Securities to be disposed of and the intended methods of disposition of such shares by the Designated Holder), the Company shall as soon as practicable, file and use commercially reasonable efforts to effect up to two such registrations during the period from the Required Filing Date to the expiration of the Effectiveness Period (but not more frequently than once per 180 day period) and to permit or facilitate the sale and distribution of all of such Registrable Securities.

 

4.2.                            Expenses. The Company shall bear all Registration Expenses in connection with this Section 4, whether or not a Registration Statement becomes effective.

 

SECTION 5
 INCIDENTAL OR “PIGGY-BACK” REGISTRATION

 

5.1.                            Request for Incidental Registration. At any time after the date hereof until the end of the Effectiveness Period, if (i) the Company proposes to file a Registration Statement under the Securities Act with respect to an offering by the Company for 

 

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its own account (other than a Registration Statement on Form F-4 or S-8 or any successor thereto), or (ii) the Company proposes to file a Registration Statement under the Securities Act with respect to an offering for the account of any shareholder of the Company other than any Designated Holder, then in each case the Company shall give written notice of such proposed filing to each of the Designated Holders at least fifteen (15) days before the anticipated filing date, and such notice shall specify, at minimum, the proposed date of filing of such Registration Statement, any proposed means of distribution of such Registrable Securities or other securities, any proposed managing underwriter or underwriters of such Registrable Securities or other securities and offer such Designated Holders the opportunity to register the number of Registrable Securities as each such Designated Holder may request (an “Incidental Registration”). The Company shall use commercially reasonable efforts to cause the managing underwriter or underwriters in the case of a proposed underwritten offering (the “Company Underwriter”) to permit each of the Designated Holders who have requested in writing to the Company within ten (10) Business Days of the giving of the notice by the Company to participate in the Incidental Registration to include its, its Registrable Securities in such offering on the same terms and conditions as the securities of the Company or the account of such other shareholder, as the case may be, included therein. In connection with any Incidental Registration under this Section 5.1 involving an underwritten offering, the Company shall not be required to include any Registrable Securities in such underwritten offering unless the Designated Holders thereof accept the terms of the underwritten offering as agreed upon between the Company, such other shareholders, if any, and the Company Underwriter. If the Company Underwriter determines that the registration of all or part of the Registrable Securities which the Designated Holders have requested to be included in an offering by the Company for its own account (other than a Registration Statement on Form F-4 or S-8 or any successor thereto) would materially adversely affect the price, timing or distribution of the securities offered or the price per security that will derive from such registration, then the Company shall be required to include in such Incidental Registration, to the extent of the amount that the Company Underwriter believes may be sold without causing such adverse effect, (i) all of the securities to be offered for the account of the Company, (ii) the Registrable Securities to be offered for the account of the Designated Holders pursuant to this SECTION 5, as a group, which Registrable Securities shall be allocated pro rata among such Designated Holders based on the number of Registrable Securities requested to be included in such offering by each such Designated Holder and (iii) other securities requested to be included in such offering. If the Company Underwriter determines in writing that the registration of all or part of the Registrable Securities which the Designated Holders have requested to be included in an offering for the account of any shareholder of the Company other than any Designated Holders (“Other Shareholders”) would materially adversely affect the price, timing or distribution of the securities offered or the price per security that will derive from such registration, then the Company shall be required to include in such Incidental Registration, to the extent of the amount that the Company Underwriter believes may be sold without causing such adverse effect, (i) all of the securities to be offered for the account of such Other Shareholders, (ii) the Registrable Securities to be offered for the account of the Designated Holders pursuant to this SECTION 5, as a group, which Registrable Securities shall be allocated pro rata among such other Designated Holders based on the number of Registrable Securities requested to be included in such offering by each such Designated Holder, (iii) all of the securities to be offered for the account of the Company, and (iv) other securities requested to be included in such offering. For the avoidance of doubt, no registration pursuant to this Section 5.1 shall relieve the Company of its obligations to register Registrable Securities pursuant to Sections 3.1, 3.2 and 5.1.

 

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5.2.                            Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under Section 5.1 prior to the effectiveness of such registration whether or not any Designated Holder has elected to include Registrable Securities in such registration. A Designated Holder shall have the right, by written notice to the Company, to exclude all or any portion of such Designated Holder’s Registrable Securities from any Registration Statement effected pursuant to this Section 5 at any time prior to its effectiveness.

 

5.3.                            Expenses. The Company shall bear all Registration Expenses in connection with any Incidental Registration pursuant to this Section 5, whether or not such Incidental Registration becomes effective.

 

SECTION 6
 UNDERWRITTEN OFFERINGS

 

6.1.                            Market Underwritten Offering. The Designated Holders may distribute all or any portion of the Registrable Securities then held by them by means of an underwritten offering; provided, that: (i) a Majority Interest has requested such underwritten offering (the “Electing Holders”); (ii) the Electing Holders provide written notice to the Company and the other Designated Holders of their intention to distribute Registrable Securities by means of an underwritten offering; (iii) the managing underwriter or underwriters thereof shall be jointly designated by the Company and the Electing Holders; (iv) each. Designated Holder participating in such underwritten offering (each a, “Participating Holder” and collectively, the “Participating Holders”) agrees to sell such Participating Holder’s Registrable Securities on the basis provided in any underwriting arrangements approved by the Electing Holders entitled selecting the managing underwriter or underwriters hereunder; (v) each Participating Holder participating in such underwritten offering completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements; (vi) the Company shall be entitled to include securities in such underwritten offering amounting to not less than 20% of the aggregate offering; and (vii) the underwritten sale pursuant to this Section must be for a number of Registrable Securities, which based on the good faith determination by the Electing Holders, would result in gross proceeds of at least $20 million (excluding securities to be offered for the account of the Company).

 

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6.2.                  The Company agrees that in the event an underwritten offering pursuant to Section 6.1 is undertaken, the Company shall (without limitation to the obligations of the Company set forth in Section 7):

 

(a)                       enter into and perform customary agreements (including an indemnity agreement with customary indemnification provisions) and take such other actions as reasonably required in order to expedite or facilitate the disposition of such Registrable Securities, including causing its officers to participate in “road shows” and other information meetings organized by the underwriter, if applicable;

 

(b)                       make available at reasonable times for inspection by any Designated Holder, any managing underwriter participating in any disposition of such Registrable Securities pursuant to a Registration Statement, Holders’ Counsel and any attorney retained by any such Designated Holder or any managing underwriter (each, an “Inspector” and, collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries, and such other information (collectively, the “Records”) as shall be reasonably necessary to enable any such Inspector to exercise their due diligence responsibility, and cause the Company’s and its subsidiaries’ officers, directors and employees, and the independent public accountants of the Company, to supply all information reasonably requested by any such Inspector in connection with such Registration Statement. Notwithstanding the foregoing, Records and other information that the Company determines, in good faith, to be confidential, and which is delivered to the Inspectors pursuant to written instruction to keep such information confidential, shall not be disclosed by the Inspectors or used for any purpose other than as necessary or appropriate for the purpose of such inspection (and the Inspectors shall confirm their agreement in writing in advance to the Company if the Company shall so request) unless (i) the disclosure of such Records is necessary, in the Company’s judgment, to avoid or correct a misstatement or omission in the Registration Statement, (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction after exhaustion of all appeals therefrom or (iii) the information in such Records was and/or becomes otherwise known to the Inspectors on a non-confidential basis, prior to or after its disclosure by the Company, or was and/or becomes generally available to the public. Each Designated Holder agrees that it shall promptly, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at the Company’s expense, to undertake appropriate action to prevent disclosure of the Records deemed confidential, and such Designated Holder shall reasonably cooperate with the Company in connection therewith;

 

(c)                        furnish, at the request of any seller of Registrable Securities on the date such securities are delivered to the underwriters for sale pursuant to such registration or, if such securities are not being sold through underwriters, on the date the Registration Statement with respect to such securities becomes effective and dated as of such date, an opinion of counsel representing the Company for the purposes of such registration, addressed to the underwriters, if any, and to the seller making such request, covering such legal matters with respect to the registration in respect of which such opinion is being given as the underwriters, if any, and such seller may reasonably request and are customarily included in such opinions; and

 

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(d)                       obtain one or more “cold comfort” letters, dated the effective date of such Registration Statement and dated the date of the closing under the applicable underwriting agreement, signed by the independent certified public accountants of the Company who have certified the financial statements included in such Registration Statement, in customary form and covering such matters of the type customarily covered by “cold comfort” letters as the holders of a Majority Interest may request.

 

SECTION 7

REGISTRATION PROCEDURES

 

7.1.                            Obligations of the Company. Whenever registration of Registrable Securities is required or requested pursuant to this Agreement, the Company shall use its commercially reasonable efforts to effect the registration of such Registrable Securities in accordance with the intended method of distribution thereof, and in connection with any such request, the Company shall, as expeditiously as possible:

 

(a)                       before filing a Registration Statement or prospectus or any amendments or supplements thereto relating to Registrable Securities, the Company shall provide a single counsel selected by the Designated Holders holding a majority of the Registrable Securities being registered in such registration (“Holders’ Counsel”) with an adequate and appropriate opportunity to review and comment on such Registration Statement and each prospectus included therein (and each amendment or supplement thereto) to be filed with the SEC, subject to such documents being under the Company’s control. The Company shall reasonably cooperate with Holders’ Counsel in performing the Company’s obligations under this Agreement. The Company shall promptly notify the Holders’ Counsel and each seller of Registrable Securities of any stop order issued or threatened by the SEC relating to Registrable Securities and take all actions required to prevent the entry of such stop order or to remove it if entered;

 

(b)                       prepare and file with the SEC such amendments and supplements to such Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Registration Statement effective for the period specified in Section 3, and if not so specified therein, the lesser of (i) one hundred and eighty (180) days and (ii) such shorter period which will terminate when all Registrable Securities covered by such Registration Statement have been sold and shall comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such Registration Statement;

 

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(c)                        furnish to each seller of Registrable Securities, prior to filing a Registration Statement relating to Registrable Securities, at least one executed copy of such Registration Statement as is proposed to be filed, and thereafter such number of conformed copies of such Registration Statement, each amendment and supplement thereto (in each case including all exhibits thereto), the prospectus included in such Registration Statement (including each preliminary prospectus and any summary prospectus) and such other documents or prospectus as each such seller may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities owned by such seller;

 

(d)                       register or qualify such Registrable Securities under such other securities or “blue sky” laws of such jurisdictions as any seller of Registrable Securities may reasonably request, and continue such registration or qualification in effect in such jurisdiction for as long as permissible pursuant to the laws of such jurisdiction, or for as long as any such seller reasonably requests or until all of such Registrable Securities are sold, whichever is shortest, and do any and all other acts and things which may be reasonably necessary or advisable to enable any such seller to consummate the public sale or other disposition in such jurisdictions of the Registrable Securities owned by such seller; provided, however, that the Company shall not be required to (i) qualify generally to do business as a foreign entity in any jurisdiction where it would not otherwise be required to qualify but for this Section 7.1(d), or (ii) consent to general service of process in any such jurisdiction;

 

(e)                        promptly notify each seller of Registrable Securities: (i) when a prospectus, any prospectus supplement, a Registration Statement or a post-effective amendment to a Registration Statement (but only if relating to Registrable Securities) has been filed with the SEC, and, with respect to a Registration Statement or any post-effective amendment (but only if relating to Registrable Securities), when the same has become effective; (ii) of any comments or request by the SEC or any other federal or state Governmental Authority for amendments or supplements to a Registration Statement or related prospectus or for additional information (but only if relating to Registrable Securities); (iii) of the issuance by the SEC or any other Governmental Authority of any stop order suspending the effectiveness of a Registration Statement relating to Registrable Securities or of any order suspending or preventing the use of any related prospectus or the initiation or threatening of any proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceedings for such purpose; (v) of the existence of any fact or happening of any event (including the passage of time) of which the Company has knowledge which makes any statement of a material fact in such Registration Statement or related prospectus or any document incorporated or deemed to be incorporated therein by reference untrue or which would require the making of any changes to the Registration Statement or prospectus in order that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of such prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (vi) determination by counsel of the Company that a post-effective amendment to a Registration Statement relating to Registrable Securities is advisable;

 

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(f)                         upon the occurrence of any event contemplated by clause (v) of Section 7.1(e), as promptly as practicable, prepare a supplement, amendment or post-effective amendment to such Registration Statement or related prospectus and furnish to each seller of Registrable Securities a reasonable number of copies of such supplement to or an amendment or post-effective amendment of such Registration Statement or prospectus as may be necessary so that, after delivery to the purchasers of such Registrable Securities, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of such prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;

 

(g)                        upon the occurrence of any event contemplated by clauses (iii) or (iv) of Section 7.1(e), as promptly as practicable, use its commercially reasonable efforts to promptly obtain the withdrawal of any such order or suspension and shall immediately notify each seller of Registrable Securities of any such withdrawal;

 

(h)                       cause all such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then listed; provided,  that the applicable listing requirements are satisfied;

 

(i)                           keep Holders’ Counsel reasonably advised in writing as to the initiation and progress of any registration hereunder; provided, that the Company shall provide Holders’ Counsel with all correspondence with Staff or the SEC in connection with any Registration Statement filed hereunder to the extent that such Registration Statement has not been declared effective on or prior to the date required hereunder;

 

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(j)                          provide reasonable cooperation to each seller of Registrable Securities and each underwriter participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with the FINRA;

 

(k)                       cooperate with the Designated Holders of the Registrable Shares to facilitate the timely preparation and delivery of certificates representing such Registrable Shares to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free of any restrictive legends and in such denominations and registered in such names as such Designated Holders may request; and

 

(l)                           take all other steps reasonably necessary and advisable to effect the registration of the Registrable Securities contemplated hereby.

 

7.2.                            Seller Information. The Company may require each seller of Registrable Securities as to which any registration is being effected to furnish, and such seller shall furnish, to the Company such information regarding the distribution of such securities as the Company may from time to time reasonably request in writing in response to requests made by the Staff or to permit the Company to comply with the rules and regulations of the SEC. The furnishing of such information shall be a condition to the inclusion of the seller’s shares in such registration.

 

7.3.                            Registration Expenses. The Company shall pay the following expenses arising from or incident to its performance of, or compliance with, this Agreement: (i) SEC, stock exchange and FINRA registration and filing fees, (ii) all fees and expenses incurred in complying with securities or “blue sky” laws (including reasonable fees, charges and disbursements of counsel to any underwriter incurred in connection with “blue sky” qualifications of the Registrable Securities as may be set forth in any underwriting agreement), (iii) all printing, messenger and delivery expenses, and (iv) the reasonable fees, charges and expenses of counsel to the Company and of its independent certified public accountants and any other accounting fees, charges and expenses incurred by the Company (including, without limitation, any expenses arising from any “cold comfort” letters or any special audits incident to or required by any registration or qualification), regardless of whether such Registration Statement is declared effective. All of the expenses described in the preceding sentence of this Section 7.3 are referred to herein as “Registration Expenses.” The Designated Holders of Registrable Securities sold pursuant to a Registration Statement shall bear (i) the expense of any broker’s commission or underwriter’s discount or commission relating to registration and sale of such Designated Holders’ Registrable Securities and (ii) the fees, charges and expenses of the Holders’ Counsel (including without limitation the fees charges and expenses incurred in connection with any amendments to a Registration Statement).

 

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7.4.                            Notice to Discontinue. Each Designated Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in clause (v) of Section 7.1(e), such Designated Holder shall forthwith discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Designated Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 7.1(f) and, if so directed by the Company, such Designated Holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Designated Holder’s possession, of the prospectus covering such Registrable Securities which is current at the time of receipt of such notice. If the Company shall give any such notice, the Company shall extend the period during which such Registration Statement shall be maintained effective pursuant to this Agreement (including, without limitation, the period referred to in Section 7.1(b) by the number of days during the period from and including the date of the giving of such notice pursuant to clause (v) of Section 7.1(e) to and including the date when sellers of such Registrable Securities under such Registration Statement shall have received the copies of the supplemented or amended prospectus contemplated by, and meeting the requirements of, Section 7.1(f) provided, that, no single suspension under this Section 7.4 shall exceed forty-five (45) days in any one hundred and eight (180) day period and in no event shall more than one suspension event exceed, in the aggregate, sixty (60) days in any twelve (12) month period.

 

SECTION 8

INDEMNIFICATION; CONTRIBUTION

 

8.1.                            Indemnification by the Company. The Company agrees to indemnify and hold harmless each Designated Holder, its general or limited partners, members, directors, officers, Affiliates and each Person who controls (within the meaning of Section 15 of the Securities Act) any of the foregoing to the fullest extent permitted by applicable law from and against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation) or any action or proceeding in respect thereof (including reasonable costs of investigation and reasonable attorneys’ fees and expenses) (each, a “Liability” and collectively, “Liabilities”), (i) arising out of or based upon or relating to any untrue, or allegedly untrue, statement of a material fact contained in any Registration Statement, prospectus or preliminary, final or summary prospectus, or document incorporated by reference into any of the foregoing (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto), (ii) arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which such statements were made, except insofar as such Liability arises out of or is based upon any untrue statement or omission contained in such Registration Statement, preliminary prospectus or final prospectus in reliance and in conformity with information concerning such Designated Holder furnished in writing to the Company by such Designated Holder specifically for use therein, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities laws or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities laws in connection with the sale of securities by such Designated Holder pursuant to any Registration Statement in which such Designated Holder is participating. The Company shall also provide customary indemnities to any underwriters (or persons, including broker-dealers or agents deemed “underwriters” within the meaning of the Securities Act) of the Registrable Securities, their officers, directors and employees and each Person who controls such underwriters (within the meaning of Section 15 of the Securities Act) to the same extent as provided above with respect to the indemnification of the Designated Holders of Registrable Securities.

 

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8.2.                            Indemnification by Designated Holders. In connection with any Registration Statement in which a Designated Holder is participating pursuant to Section 3 or Section 5 hereof, each such Designated Holder shall promptly furnish to the Company in writing such information with respect to such Designated Holder as may be required by law or regulation for use in connection with any such Registration Statement or prospectus and all information required to be disclosed in order to make the information previously furnished to the Company by such Designated Holder not materially misleading or necessary to cause such Registration Statement or prospectus not to omit a material fact with respect to such Designated Holder necessary in order to make the statements therein not misleading. Each Designated Holder agrees to indemnify and hold harmless the Company, its directors, officers, Affiliates, and each Person who controls the Company to the same extent as the foregoing indemnity from the Company to the Designated Holders, but only if such untrue statement or omission was made in reliance upon and in conformity with information with respect to such Designated Holder furnished in writing to the Company by such Designated Holder specifically for use in such Registration Statement or preliminary, final or summary prospectus or amendment or supplement, or a document incorporated by reference into any of the foregoing; provided, however, that the total amount to be indemnified by such Designated Holder pursuant to this Section 7.2 shall be limited to the net proceeds (after deducting the underwriters’ discounts and commissions) received by such Designated Holder in the offering to which the Registration Statement or prospectus relates.

 

8.3.                            Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give prompt written notice to the indemnifying party (the “Indemnifying Party”) after the receipt by the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided, however, that the failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party of any Liability that it may have to the Indemnified Party hereunder (except to the extent that the Indemnifying Party is materially prejudiced or otherwise forfeits substantive rights or defenses by reason of such failure). If notice of commencement of any such action is given to the Indemnifying Party as above provided, the Indemnifying Party shall be entitled to participate in and, to the extent it may wish, jointly with any other Indemnifying Party similarly notified, to assume the defense of such action at its own expense, with counsel chosen by it and reasonably satisfactory to such Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be paid by the Indemnified Party unless (i) the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel reasonably satisfactory to the Indemnified Party or (iii) such parties have been advised in writing by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (y) there may be one or more legal defenses available to the Indemnified Party which are different from or additional to those available to the Indemnifying Party, in any of such cases, the Indemnifying Party shall not have the right to assume the defense of such action on behalf of such Indemnified Party, it being understood, however, that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all similarly-situated Indemnified Parties. No Indemnifying Party shall be liable for any settlement entered into without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the consent of such Indemnified Party, effect any settlement of any pending or threatened proceeding in respect of which such Indemnified Party is a party and indemnity has been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability for claims that are the subject matter of such proceeding.

 

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8.4.                            Contribution.

 

(a)                       If the indemnification provided for in this Section 8 from the Indemnifying Party is unavailable to an Indemnified Party hereunder in respect of any Liabilities referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute (to the fullest extent permitted by applicable law) to the amount paid or payable by such Indemnified Party as a result of such Liabilities in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions which resulted in such Liabilities, as well as any other relevant equitable considerations. The relative faults of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Liabilities referred to above shall he deemed to include, subject to the limitations set forth in Sections 8.1 and 8.2, any legal or other fees, charges or expenses reasonably incurred by such party in connection with any investigation or proceeding; provided, that the total amount to be contributed by such Designated Holder shall be limited to the net proceeds (after deducting the underwriters’ discounts and commissions) received by such Designated Holder in the offering.

 

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(b)                       The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 8.4 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in Section 8.4(a). No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

SECTION 9

COVENANTS

 

9.1                               Rule 144. The Company covenants that from and after the date hereof it shall use its commercial reasonable efforts to (i) timely file any reports required to be filed by it under the Exchange Act and (ii) promptly take such further action as each Designated Holder may reasonably request (including providing any information necessary to comply with Rule 144 under the Securities Act), all to the extent required from time to time to enable such Designated Holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (i) Rule 144 under the Securities Act, as such rule may be amended from time to time or (ii) any similar rules or regulations hereafter adopted by the SEC. The Company shall, upon the request of any Designated Holder, deliver to such Designated Holder a written statement as to whether it has complied with such requirements.

 

9.2.                            Adjustments Affecting Registrable Securities. The Company shall not take any action, or permit any change to occur, with respect to its securities that would adversely affect the ability of the Designated Holders of Registrable Securities to include such Registrable Securities in a registration undertaken pursuant to this Agreement or that would adversely affect the marketability of such Registrable Securities in any such registration (including, without limitation, effecting a stock split or a combination of shares).

 

SECTION 10

MISCELLANEOUS

 

10.1.                     Recapitalizations, Exchanges, etc. The provisions of this Agreement shall apply to the full extent set forth herein with respect to Equity Securities into which the Shares are converted, exchanged or substituted in any recapitalization or other capital reorganization by the Company and (iii) any and all Equity Securities of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in conversion of, in exchange for or in substitution of, the Shares and shall be appropriately adjusted for any stock dividends, splits, reverse splits, combinations, recapitalizations and the like occurring after the date hereof. The Company shall cause any successor or assign (whether by merger, consolidation, sale of assets or otherwise) to enter into a new registration rights agreement with the Designated Holders on terms substantially the same as this Agreement as a condition of any such transaction.

 

16

 

10.2.                     Notices. All notices, demands and other communications provided for or permitted hereunder shall be made in the manner provided for under the Purchase Agreement.

 

10.3.                     Successors and Assigns; Third Party Beneficiaries. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties hereto as hereinafter provided.

 

10.4.                     Amendments and Waivers. Except as otherwise provided herein, the provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless consented to in writing by (i) the Company and (ii) the Designated Holders holding at least a Majority Interest; provided that any party hereto may give a waiver in writing as to itself

 

10.5.                     Aggregation of Shares. All shares of Registrable Securities held or acquired by Affiliated entities or Persons or entities or Persons under common management or control shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.

 

10.6.                     Counterparts. This Agreement may be executed in one or more counterparts including counterparts transmitted by telecopier or facsimile, each of which shall be deemed an original but all of which signed and taken together, shall constitute one document.

 

10.7.                     Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

10.8.                     GOVERNING LAW; ARBITRATION. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK OF THE UNITED STATES APPLICABLE TO CONTRACTS TO BE PERFORMED WHOLLY WITHIN SUCH JURISDICTION, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OF ANY JURISDICTION. The Parties hereby agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby, whether in contract, tort or otherwise, shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by three arbitrators appointed in accordance with the said rules. The place of arbitration shall be in Hong Kong. The language of arbitration shall be English.

 

10.9.                     Severability. Each and every obligation under this Agreement shall be treated as a separate obligation and shall be severally enforceable as such and in the event of any obligation or obligations being or becoming unenforceable in whole or in part. To the extent that any provision or provisions of this Agreement are unenforceable they shall he deemed to be deleted from this Agreement, and any such deletion shall not affect the enforceability of such provisions of this Agreement as remain not so deleted.

 

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10.10.              Rules of Construction. Unless the context otherwise requires (i) the words “hereof,” “herein,” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; (ii) terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa; (iii) the terms “Dollars,” “dollars” and “$” mean United States Dollars; (iv) references herein to a specific Section, Subsection, recital, Schedule or Exhibit shall refer, respectively, to Sections, Subsections, recitals, Schedules or Exhibits of this Agreement; (v) wherever the word “include,” “includes,” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation;” (vi) references herein to any gender or no gender shall include each other gender; (vii) references herein to any Person shall include such Person’s heirs, executors, personal representatives, administrators, successors and assigns; provided, however, that nothing contained in this clause (viii) is intended to authorize any assignment or transfer not otherwise permitted by this Agreement; (ix) references herein to a Person in a particular capacity or capacities shall exclude such Person in any other capacity; (x) with respect to the determination of any period of time, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding;” (xi) the word “or” shall be disjunctive but not exclusive; (xii) references herein to any law (including any federal, state, provincial, local, municipal, foreign, international, multinational, or other administrative statute, regulation, order, rule, directive, ordinance, code, constitution, principle of common law, equity or treaty) shall be deemed to refer to such law as amended, modified, codified, reenacted, supplemented or superseded in whole or in part and in effect from time to time, and also to all rules and regulations promulgated thereunder; (xiii) references to any contract means such contract as amended, supplemented or modified in accordance with the terms thereof; and (xiv) if the last day for the giving of any notice or the performance of any act required or permitted under this Agreement is a day that is not a Business Day, then the time for the giving of such notice or the performance of such action shall be extended to the next succeeding Business Day.

 

10.11.              Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto with respect to the subject matter contained herein. There are no restrictions, promises, representations, warranties or undertakings with respect to the subject matter contained herein, other than those set forth or referred to herein. This Agreement supersedes all prior agreements and understandings among the parties with respect to such subject matter.

 

10.12.              Further Assurances. Each of the parties shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

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10.13.              Other Agreements. Nothing contained in this Agreement shall be deemed to be a waiver of, or release from, any obligations any party hereto may have under any other agreement including, but not limited to, the Charter Documents and the Purchase Agreement.

 

10.14.              Termination. Except for the liabilities or obligations under Section 7.3 or Section 8, all of which shall remain in effect in accordance with their terms, this Agreement and the obligations of the parties hereunder (other than liability for the breach by any party hereto of any of the terms of this Agreement) shall terminate upon the end of the Effectiveness Period.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this Agreement on the date first written above.

 

 

	
 
    	
AMBOW EDUCATION HOLDING LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	

    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SUMMITVIEW CAPITAL GENERAL PARTNER I LIMITED
    
	
 
    	
As the General Partner and on behalf of
    
	
 
    	
SUMMITVIEW INVESTMENT FUND I, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Jian-Yue Pan
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Registration Rights Agreement]

 

 

IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this Agreement on the date first written above.

 

 

	
 
    	
AMBOW EDUCATION HOLDING LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SUMMITVIEW CAPITAL GENERAL PARTNER I LIMITED
    
	
 
    	
As the General Partner and on behalf of
    
	
 
    	
SUMMITVIEW INVESTMENT FUND I, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jian-Yue Pan
    
	
 
    	
Name:
    	
Jian-Yue Pan
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Registration Rights Agreement]Exhibit 4.36

 

THIS AMENDMENT TO SHARE PURCHASE AGREEMENT (this “Amendment”) is made and entered into on May 5, 2014, by and among:

 

(1)             AMBOW EDUCATION HOLDING LTD. (in provisional liquidation), an exempted company incorporated with limited liability under the laws of the Cayman Islands (the “Company”) acting by its joint provisional liquidators Edward Middleton, Wing Sze Tiffany Wong and Kris Beighton who were appointed to the Company by the Grand Court of the Cayman Islands on June 7, 2014 (the “JPLs”); and

 

(2)             SUMMITVIEW INVESTMENT FUND I, L.P., a Cayman Islands exempted limited partnership (the “Fund”; the Company and the Fund being referred to herein as the “Parties”).

 

WHEREAS:

 

(A)            On April 28, 2013, the Company and Summitview Investment Limited, a business company incorporated with limited liability in the British Virgin Islands (“Summitview”); (the Company and Summitview being referred to herein as the “Original Parties”), entered in to a share purchase agreement (the “Original SPA”), pursuant to which the Company agreed to issue to Summitview, and Summitview agreed to purchase from the Company, 36,668,009 Shares (as defined in the Original SPA), for aggregate consideration of USD25,000,000. Subsequently, the Original SPA was amended and supplemented by the Original Parties and the Fund on May 24, 2013, pursuant to which, among other things, the rights and obligations of Summitview under the Original SPA were assigned in their entirety to the Fund, and on May 31, 2013, the Company and the Fund entered into a Supplementary Agreement to the amended Original SPA (as amended and supplemented to date, the “Amended SPA”; the Amended SPA, as further amended by this Amendment being referred to herein as the “Further Amended SPA”), pursuant to which, among other things, the commitments under Section 2.1 of the Original SPA were amended to provide for the purchase and sale of a total of 30,801,128 Shares for total consideration of USD21,000,000. In this Amendment, unless otherwise defined or the context otherwise requires, all capitalised terms shall have the meanings ascribed to them in the Amended SPA.

 

(B)            In connection with the Amended SPA, Ambow Education (Hong Kong) Limited received USD5,000,000 and Beijing Ambow Online Software Co., Ltd, received RMB30,667,500 (equivalent to c. USD5,000,000) from or for the benefit of the Fund (collectively, the “Funded Consideration”) as partial payment of the consideration required to be paid for the Shares to be issued pursuant to the Amended SPA, and the Company has issued 30,801,128 Shares fully paid as to par value to the Fund (the “Fully Paid Shares”) as recognized in the undated but executed Unanimous Written Resolution of Directors of the Company (the “Director’s Share Resolution”).

 

(C)              Pursuant to Section 13.1 of the Amended SPA, the Parties agree to amend several terms under the Amended SPA on and subject to the terms and conditions of this Amendment.

 

 

NOW, THEREFORE, THE PARTIES AGREE as follows:

 

1.             Notwithstanding anything in the Amended SPA, including Section 2 thereof:

 

1.1          For the purposes of this Amendment only, the Parties acknowledge and agree that the Funded Consideration was intended, and was applied, to the par value of the Fully Paid Shares pursuant to clause 1.5(c) of the Director’s Share Resolution and each Party acknowledges and agrees that the Fully Paid Shares were issued as fully paid non-assessable Shares.

 

1.2          The Company’s obligations to the Fund to issue and sell Shares, and the Fund’s obligations to the Company to pay for and purchase Shares, in relation to the Original SPA and / or any subsequent amendment thereto (including the Amended SPA, the Further Amended SPA and this Amendment) shall be deemed satisfied in full by the Fund’s prior payments to Ambow Education (Hong Kong) Limited and Beijing Ambow Online Software Co., Ltd (referred to in Recital B above), on behalf of the Company, of the Funded Consideration of c. USD10,000,000 (of which the Company hereby acknowledges receipt in full) and the prior issuance to the Fund of the Fully Paid Shares (of which the Fund hereby acknowledges receipt in full).

 

1.3          The Fund hereby surrenders, for no consideration and free and clear of all encumbrances, to the Company, and the Company hereby accepts, 16,133,925 Shares out of the Fully Paid Shares previously issued to the Fund under the Amended SPA (the “Surrendered Shares”) and the Fund hereby acknowledges and agrees, on behalf of itself and its affiliates, that (a) the Fund holds no share capital of the Company other than the 14,667,203 Fully Paid Shares retained by the Fund (the “Retained Shares”) and the Fund has no claim against the Surrendered Shares, and (b) the Surrendered Shares shall be treated as cancelled by the Company at its sole discretion without any reduction in the amount of the Company’s authorised share capital or any claim or other encumbrance in relation to the Original SPA and / or any subsequent amendment thereto (including the Amended SPA or this Amendment).

 

1.4          Upon due execution of this Amendment and surrender of the Surrendered Shares as contemplated herein, the Fund will own the Retained Shares free and clear of all encumbrances from the Company and have no obligation to pay further consideration for the purchase of the Retained Shares or the Surrendered Shares pursuant to the Original SPA and / or any subsequent amendment thereto (including the Amended SPA, the Further Amended SPA and this Amendment).

 

1.5          The Fund acknowledges and agrees, on behalf of itself and its affiliates, that the surrender of the Surrendered Shares will not entitle the Fund to receive or purchase additional Shares in relation to the Original SPA and / or any subsequent amendment thereto (including the Amended SPA, the Further Amended SPA and this Amendment). The Fund acknowledges and agrees, on behalf of itself and its affiliates, that no portion of the Funded Consideration shall be deemed indebtedness owed by the Company or its affiliates (or if for any reason any amount is so characterized, any such indebtedness shall be deemed to have been fully paid and satisfied by the issuance and receipt and retention of the Retained Shares).

 

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1.6          The Parties acknowledge that Ma Huiguo, PRC resident and limited partner in the Fund, has made three loans in total to Beijing Ambow Online Software Co., Ltd and Beijing Ambow Shengying Education and Technology Co., Ltd„ being direct or indirect subsidiaries of the Company, such loans having an aggregate principal totaling RMB 15,000,000 (the “RMB Loans”). The Parties acknowledge and agree that nothing in this Amendment will alter or affect the rights and obligations of the parties to the RMB Loans, which for purposes of this Amendment shall remain in full force and effect in accordance with their existing terms, nor shall the RMB Loans be taken into account in determining the amount of the Funded Consideration that has been paid by the Fund pursuant to the Amended SPA, or the number of Shares to which the Fund is entitled after giving effect to this Amendment. Apart from the RMB Loans, the Fund confirms that none of it, no investor in the Fund, nor any other person in whom the Fund holds an interest, in each case, holds any debt issued by the Company or persons associated therewith.

 

2.             The Fund acknowledges and agrees, on behalf of itself and its affiliates, that (a) the Retained Shares represent less than 10% of the share capital of the Company (including outstanding Class B Ordinary Shares) (b) with respect to Section 8.7 (Pre-emptive Rights) of the Original SPA (including as reflected in the Amended SPA and Further Amended SPA), (i) consent is hereby given by the Fund and the Fund hereby waives any pre-emption rights in its favour set forth in the Original SPA, in respect of any proposed issuance of Equity Securities (as defined in the Original SPA) connected to the reorganization, restructuring and/or refinancing of one or more of the Company and/or its affiliates to which sanction is given by the Grand Court of the Cayman Islands, (ii) no notice is required to be given by the Company (or any other party) to the Fund in respect to such Section 8.7(b), (iii) such Section 8.7 does not apply, and (iv) the Company is not obliged to seek the consent of the Fund for any actions contemplated by such Section 8.7, and (c)  with respect to Section 8.8 (Protective Provision) of the Original SPA (including as reflected in the Amended SPA and Further Amended SPA), (i) consent is hereby given with respect to any and all documents (as well as all actions contemplated thereby, or otherwise taken in furtherance thereof) to which sanction is given by the Grand Court of the Cayman Islands in relation to the reorganization, restructuring and/or refinancing of one or more of the Company and its affiliates, (ii) no claim exists with respect to such Section 8.8 (or if any such claim does exist, each such claim is hereby waived in full), (iii) such Section 8.8 does not apply, and (iv) the Company is not obliged to seek the consent of the Fund for the actions contemplated by such Section 8.8. Each of the Fund and the Company acknowledges and agrees that the foregoing provisions of this clause 2 (of this Amendment) apply only with respect to any reorganization, restructuring and/or refinancing of one or more of the Company and/or its affiliates to which sanction is given by the Grand Court of the Cayman Islands (including any issuance of debt or Equity Securities (as defined in the Original SPA) issued in connection with such reorganization, restructuring and/or refinancing, as well as any subsequent issuance upon conversion of such debt or Equity Securities so sanctioned) and each of Section 8.7 and 8.8 of the Original SPA (including as reflected in the Amended SPA and Further Amended SPA) shall otherwise apply pursuant to their respective terms. Notwithstanding anything to the contrary, Section 8.6  (Reporting Status) of the of the Original SPA (including as reflected in the Amended SPA and Further Amended SPA) shall be deemed deleted ab initio and not applicable at any time and no claim shall exist with respect to such Section at any time.

 

3.             The Fund hereby undertakes that it will comply with any and all requests of the Company to ensure that the Register of Members of the Company is updated immediately upon due execution of this Amendment in order to reflect the surrender by the Fund of the Surrendered Shares and the retention by the Fund of the Retained Shares.

 

3

 

4.             The Parties to this Agreement hereby acknowledge and agree that (a) the JPLs act as agents of the Company and shall incur no personal liability from acting in the capacity of agents or otherwise, nor shall any claim arise against any of them and (b) the JPLs and their employers, employees, solicitors, advisers, values, agents partners or representatives do not have any personal liability of any kind under, or by virtue of, this Agreement, nor in relation to any related matter or claim, whether in contract, tort or restitution or by reference to any other remedy or right, in any jurisdiction or forum in respect of any of the transactions contemplated in this Agreement.

 

5.             This Agreement may be executed in one or more counterparts, including counterparts transmitted by facsimile or email, each of which shall be deemed an original, but all of which, signed and taken together, shall constitute one document.

 

6.             THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK OF THE UNITED STATES APPLICABLE TO CONTRACTS TO BE FORMED WHOLLY WITHIN SUCH JURISDICTION, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OF ANY JURISDICTION.

 

7.             The Parties hereby agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby, whether in contract, tort or otherwise, shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by three arbitrators appointed in accordance with said rules. The place of arbitration shall be in Hong Kong. The language of arbitration shall be English.

 

[The remainder of this page is intentionally left blank]

 

4

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above,

 

 

	
 
    	
AMBOW EDUCATION HOLDING LTD.
    (in provisional liquidation)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	

    
	
 
    	
as joint provisional liquidator for and on   behalf of Ambow Education Holding Ltd, (in provisional liquidation) as agent   and without personal liability.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SUMMITVIEW CAPITAL GENERAL PARTNER I LIMITED
    
	
 
    	
As the General Partner   and on behalf of
    
	
 
    	
SUMMITVIEW INVESTMENT FUND I, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title: 
    

 

5

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above,

 

 

	
 
    	
AMBOW EDUCATION HOLDING LTD.
    (in provisional liquidation)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
as joint provisional liquidator for and on   behalf of Ambow Education Holding Ltd, (in provisional liquidation) as agent   and without personal liability.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SUMMITVIEW CAPITAL GENERAL PARTNER I LIMITED
    
	
 
    	
As the General Partner   and on behalf of
    
	
 
    	
SUMMITVIEW INVESTMENT FUND I, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jian-Yue Pan
    
	
 
    	
Name: Jian-Yue Pan
    
	
 
    	
Title: Director
    

 

6

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