Document:

Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into this ______, 2019 (the “Effective Date”), by and between Meten International Education Group, a company incorporated and existing under the laws of the Cayman Islands (the “Company” and, together with all of its direct or indirect subsidiaries and Affiliates controlled by it, collectively referred to as the “Company Group”), and ____, an individual (the “Executive”).

 

RECITALS

 

THE PARTIES ENTER THIS AGREEMENT on the basis of the following facts, understandings and intentions:

 

A.  The Company desires that the Executive be employed by the Company to carry out the duties and responsibilities described below, all on the terms and conditions hereinafter set forth.

 

B.  The Executive desires to accept such employment on such terms and conditions.

 

NOW, THEREFORE, in consideration of the above recitals incorporated herein and the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties agree as follows:

 

1.                                      Retention and Duties.

 

1.1                               Retention.  The Company does hereby hire, engage and employ the Executive for the Period of Employment (as such term is defined in Section 2) on the terms and conditions expressly set forth in this Agreement.  The Executive does hereby accept and agree to such hiring, engagement and employment, on the terms and conditions expressly set forth in this Agreement.  The Executive agrees to commence active employment with the Company on or before _________ (the first day of such employment is referred to as the “Employment Commencement Date”).

 

1.2                               Duties.  During the Period of Employment, the Executive shall serve the Company as its _____ and shall have such powers, authorities, duties and obligations consistent with such position as the Company’s Board of Directors (the “Board”) shall determine from time to time.  Notwithstanding the foregoing, the Executive and the Company acknowledge and agree that the Company, in its sole discretion, may change the legal employer of the Executive to any other member of the Company Group (including the Company or the Purchaser) and may change the Executive’s job title, provided that Executive’s duties and responsibilities remain substantially the same after any such change.  The Executive shall be subject to such directives of the Board and the corporate policies of the Company as they are in effect from time to time throughout the Period of Employment (including, without limitation, the Company’s business conduct and ethics policies, as they may change from time to time).  During the Period of Employment, the Executive shall report solely to the Board and/or any persons duly designated by the Board.

 

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1.3                               No Other Employment; Minimum Time Commitment.  During the Period of Employment, the Executive shall (i) devote substantially all of the Executive’s business time, energy and skill to the performance of the Executive’s duties described in Section 1.2 above, (ii) perform such duties in a faithful, effective and efficient manner to the best of his abilities, and (iii) hold no other employment other than employment for the Company Group.  The Executive’s service on the boards of directors (or similar body) of other business entities (other than the Company Group) is subject to the approval of the Board.  The Company shall have the right to require the Executive to resign from any board or similar body (including, without limitation, any association, corporate, civic or charitable board or similar body) which he may then serve if the Board reasonably determines in writing that the Executive’s service on such board or body interferes with the effective discharge of the Executive’s duties and responsibilities to the Company Group or that any business related to such service is then in competition with any business of the Company Group or any of their successors or assigns.

 

1.4                               No Breach of Contract.  The Executive hereby represents to the Company and agrees that: (i) the execution and delivery of this Agreement by the Executive and the Company and the performance by the Executive of the Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or otherwise bound; (ii) the Executive will not enter into any new agreement that would or reasonably could contravene or cause a default by the Executive under this Agreement;  (iii) the Executive has no information (including, without limitation, confidential information and trade secrets) relating to any other Person (as such term is defined in Section 5.5) which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his duties hereunder; (iv) the Executive is not bound by any employment, consulting, non-compete, confidentiality, trade secret or similar agreement (other than this Agreement) with any other Person; (v) to the extent the Executive has any confidential or similar information that he is not free to disclose to the Company, he will not disclose such information to the extent such disclosure would violate applicable law or any other agreement or policy to which the Executive is a party or by which the Executive is otherwise bound; and (vi) the Executive understands the Company will rely upon the accuracy and truth of the representations and warranties of the Executive set forth herein and the Executive consents to such reliance.

 

1.5                               Location.  The Executive acknowledges that the Company’s principal executive offices are currently located in Shenzhen, the People’s Republic of China.  The Executive’s principal place of employment shall be the Company’s principal executive offices.  The Executive agrees that he will be regularly present at the Company’s principal executive offices.  The Executive acknowledges that he may be required to travel from time to time in the course of performing his duties for the Company (or such other member of the Company Group, as the case may be).

 

2.                                      Period of Employment.  The “Period of Employment” shall be a period of three (3) years commencing on the Employment Commencement Date and ending at the close of business on the third (3rd) anniversary of the Employment Commencement Date (the “Termination Date”); provided, however, that this Agreement shall be automatically renewed, and the Period of Employment shall be automatically extended for three (3) years additional year on the Termination Date and each anniversary of the Termination Date thereafter, unless either party gives notice, in writing and delivered in accordance with Section 18, at least thirty (30) days prior to the expiration of this Agreement and the Period of Employment (including any renewal thereof) of such party’s desire to terminate the Agreement or modify its terms.  The term “Period of Employment” shall include any extension thereof pursuant to the preceding sentence.  Provision of notice that the Period of Employment shall not be extended or further extended, as the case may be, shall not constitute a breach of this Agreement and shall not constitute “Constructive Termination” for purposes of this Agreement.  Notwithstanding the foregoing, the Period of Employment is subject to earlier termination as provided below in this Agreement.

 

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3.                                      Compensation.

 

3.1                               Base Salary.  The Executive’s base salary (the “Base Salary”) during the Period of Employment shall be paid in accordance with the Company’s regular payroll practices in effect from time to time, but not less frequently than in monthly installments.  The Executive’s Base Salary for the first twelve (12) months of the Period of Employment shall be at an annualized rate of ______.  The Company will review the Executive’s Base Salary periodically.

 

3.2                               Incentive Bonus.  During the Period of Employment, the Executive shall be eligible to participate in periodic incentive bonuses under any incentive program applicable to executive officers of the Company and approved by the Board (the “Incentive Bonus”).  Except as otherwise expressly provided in this Agreement, the Executive must be employed by the Company through the last day of the period to which an Incentive Bonus relates in order to be eligible for an Incentive Bonus (or portion thereof) with respect to that period (and, if the Executive is not so employed at such time, in no event shall he have been considered to have “earned” any Incentive Bonus with respect to such period).  Any Incentive Bonus will be paid, subject to applicable tax withholding, as soon as practicable after the end of the period to which such bonus relates and, if the Executive is a U.S. person, in all events not later than March 15 of the year that follows the year in which such period ends.

 

4.                                      Benefits.

 

4.1                               Retirement, Welfare and Fringe Benefits.  During the Period of Employment, the Executive shall be entitled to participate in all employee pension and welfare benefit plans and programs, and fringe benefit plans and programs, made available by the Company to the Company’s employees generally, in accordance with the eligibility and participation provisions of such plans and as such plans or programs may be in effect from time to time.

 

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4.2                               Reimbursement of Business Expenses.  The Executive is authorized to incur reasonable expenses in carrying out the Executive’s duties for the Company under this Agreement and shall be entitled to reimbursement for all reasonable business expenses the Executive incurs during the Period of Employment in connection with carrying out the Executive’s duties for the Company, subject to the Company’s expense reimbursement policies in effect from time to time.  The Executive agrees to promptly submit and document any reimbursable expenses in accordance with the Company’s expense reimbursement policies to facilitate the timely reimbursement of such expenses.

 

4.3                               Vacation and Other Leave.  During the Period of Employment, the Executive shall accrue and be entitled to take paid vacation in accordance with the Company’s vacation policies in effect from time to time, including the Company’s policies regarding vacation accruals; provided that the Executive’s rate of vacation accrual during the Period of Employment shall be no less than [ ] weeks per year. The Executive shall also be entitled to all other holiday and leave pay generally available to other executives of the Company.

 

5.                                      Termination.

 

5.1                               Termination by the Company.  The Executive’s employment by the Company, and the Period of Employment, may be terminated at any time by the Company: (i) with Cause (as such term is defined in Section 5.5), or (ii) with no less than thirty (30) days advance notice to the Executive (delivered with accordance with Section 18), without Cause, or (iii) in the event of the Executive’s death, or (iv) in the event that the Board determines in good faith that the Executive has a Disability (as such term is defined in Section 5.5).

 

5.2                               Termination by the Executive.  The Executive’s employment by the Company, and the Period of Employment, may be terminated by the Executive with no less than thirty (30) days advance notice to the Company (delivered in accordance with Section 18); provided, however, that in the case of a Constructive Termination (as such term is defined in Section 5.5), the Executive may provide immediate written notice if the Company fails to, or cannot, reasonably cure the event that gives rise to the Constructive Termination.

 

5.3                               Benefits Upon Termination.  If the Executive’s employment by the Company is terminated during the Period of Employment for any reason by the Company or by the Executive, or upon or following the expiration of the Period of Employment (in any case, the date that the Executive’s employment by the Company terminates is referred to as the “Severance Date”), the Company shall have no further obligation to make or provide to the Executive, and the Executive shall have no further right to receive or obtain from the Company, any payments or benefits except as follows:

 

(a)                                 The Company shall pay the Executive (or, in the event of his death, the Executive’s estate) any Accrued Obligations (as defined in Section 5.5);

 

(b)                                 If, during the Period of Employment, the Executive’s employment with the Company terminates as a result of an Involuntary Termination (as such term is defined in Section 5.5), the Executive shall be entitled to the following benefits:

 

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(i)                                     The Company shall pay the Executive (in addition to the Accrued Obligations), subject to tax withholding and other authorized deductions, an amount equal to [ ] percent ([ ]%) of the Executive’s annualized Base Salary (as in effect immediately prior to the termination of the Executive’s employment).  Such amount is referred to hereinafter as the “Severance Benefit.”  The Company shall pay the Severance Benefit to the Executive in equal installments on a bi-weekly basis over a period of twelve (12) months following the Severance Date (the “Severance Period”).

 

(ii)                                  The Company shall continue to make available to the Executive and the Executive’s spouse and dependents covered under any group health plans of the Company on the Severance Date, all group health insurance plans in which Executive or such spouse or dependents participate on the Severance Date at the same cost to the Executive as the Executive paid for such benefits prior to such date.  To the extent that the Company cannot continue to provide such benefits, it will pay the Executive an amount that would be sufficient to enable the Executive to purchase substantially the same level of such benefits from a third party at the same cost to the Executive as the Executive paid for such benefits immediately prior to the Severance Date. Notwithstanding the foregoing, the Company’s obligation to make any payment or reimbursement pursuant to this clause (ii) shall commence with continuation coverage for the month following the month in which the Severance Date occurs and shall cease with continuation coverage for the twelfth month following the month in which the Severance Date occurs (or, if earlier, shall cease upon the first to occur of the Executive’s death, the date the Executive becomes eligible for coverage under the health plan of a future employer, or the date the Company ceases to offer group medical coverage to its active executive employees).

 

(c)                                  If a Change of Control (as such term is defined in Section 5.5)  occurs at any time during the Period of Employment, and on or within six months following such Change of Control the Executive’s employment with the Company terminates as a result of an Involuntary Termination (as such term is defined in Section 5.5), then the vesting of each outstanding option, restricted stock award or other stock-based award granted by the Company to the Executive shall be automatically accelerated so that such award shall be vested in full as of the date of such Involuntary Termination.

 

(d)                                 Notwithstanding the foregoing provisions of this Section 5.3, if the Executive breaches his obligations under Section 6 of this Agreement at any time, from and after the date of such breach and not in any way in limitation of any right or remedy otherwise available to the Company, the Executive will no longer be entitled to, and the Company will no longer be obligated to pay or provide, any remaining unpaid portion of the Severance Benefit or any remaining unpaid amount or benefit contemplated by Section 5.3(b)(ii) or 5.3(c); provided that, if the Executive provides the release contemplated by Section 5.4, the Executive be entitled to benefits pursuant to Section 5.3(b) or 5.3(c), as applicable, of no less than $5,000 (or the amount of such benefits, if less than $5,000), which amount the parties agree is good and adequate consideration, in and of itself, for the Executive’s release contemplated by Section 5.4.

 

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(e)                                  The foregoing provisions of this Section 5.3 shall not affect: (i) the Executive’s receipt of benefits otherwise due to terminated employees under group insurance coverage consistent with the terms of the applicable Company welfare benefit plan; (ii) the Executive’s rights under the Consolidated Omnibus Budget Reconciliation Act (if applicable) to continue participation in medical, dental, hospitalization and life insurance coverage; or (iii) the Executive’s receipt of benefits otherwise due in accordance with the terms of the Company’s 401(k) plan (if any).

 

5.4                               Release; Exclusive Remedy.

 

(a)                                 This Section 5.4 shall apply notwithstanding anything else contained in this Agreement or any stock option or other equity-based award agreement to the contrary.  As a condition precedent to any Company obligation to the Executive pursuant to Section 5.3(b) or any obligation to accelerate vesting of any equity-based award in connection with the termination of the Executive’s employment, the Executive shall, upon or promptly following his last day of employment with the Company (and in all events within twenty-one (21) days after his last day of employment with the Company), provide the Company with a valid, executed general release agreement in a form acceptable to the Company, and such release agreement shall have not been revoked by the Executive pursuant to any revocation rights afforded by applicable law.

 

(b)                                 The Executive agrees that the payments and benefits contemplated by Section 5.3 (and any applicable acceleration of vesting of an equity-based award in accordance with the terms of such award in connection with the termination of the Executive’s employment) shall constitute the exclusive and sole remedy for any termination of his employment and the Executive covenants not to assert or pursue any other remedies, at law or in equity, with respect to any termination of employment.  The Company and the Executive acknowledge and agree that there is no duty of the Executive to mitigate damages under this Agreement.  The Executive agrees to resign, on the Severance Date, as an officer and director of the Company and any Affiliate of the Company, and as a fiduciary of any benefit plan of the Company or any Affiliate of the Company, and to promptly execute and provide to the Company any further documentation, as requested by the Company, to confirm such resignation.

 

(c)                                  In the event that the Company provides the Executive notice of termination without Cause pursuant to Section 5.1 or the Executive provides the Company notice of termination pursuant to Section 5.2, the Company will have the option to place the Executive on paid administrative leave during the notice period.

 

5.5                               Certain Defined Terms.

 

(a)                                 As used herein, “Accrued Obligations” means:

 

(i)                     any Base Salary that had accrued but had not been paid (including accrued and unpaid vacation time) on or before the Severance Date; and

 

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(ii)                  any Incentive Bonus payable pursuant to Section 3.2 with respect to any period in the Period of Employment that is completed prior to the Severance Date to the extent such bonus is earned by but not previously paid to the Executive; and

 

(iii)               any reimbursement due to the Executive pursuant to Section 4.2 for expenses incurred by the Executive on or before the Severance Date.

 

(b)                                 As used herein, “Affiliate” of the Company means a Person that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company.  As used in this definition, the term “control,” including the correlative terms “controlling,” “controlled by” and “under common control with,” means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person.

 

(c)                                  As used herein, “Cause” shall mean, as reasonably determined by the Board (excluding the Executive, if he is then a member of the Board), (i) any material breach by the Executive of any material written agreement between the Executive and any of the Company, its parent or subsidiary, as the case may be, and such Executive’s failure to cure such breach within 30 days after receiving written notice thereof; (ii) any failure by the Executive to comply with material written policies or rules of the Company, its parent or subsidiary, as the case may be, as they may be in effect from time to time; (iii) the Executive’s repeated failure to follow reasonable and lawful instructions from the Board or chief executive officer and such Executive’s failure to cure such condition within 30 days after receiving written notice thereof; (iv) the Executive’s conviction of, or plea of guilty or nolo contendere to, any crime that results in, or is reasonably expected to result in, material harm to the business or reputation of the Company; (v) the Executive’s commission of or participation in an act of fraud against the Company, its parent or subsidiary; (vi) the Executive’s intentional material damage to the Company’s business, property or reputation; (vii) the Executive’s unauthorized use or disclosure of any proprietary information or trade secrets of the Company, its parent or subsidiary, or any other party to whom the Executive owes an obligation of nondisclosure as a result of his or her relationship with the Company, its parent or subsidiary; or (viii) any breach by the Executive of any non-disclosure undertakings/agreements or non-competition undertakings/agreements between the Executive and the Company, its parent or subsidiary.

 

(d)                                 As used herein, “Change of Control” shall mean the first to occur of any of the following events after the Effective Date:

 

(i)                                     Approval by shareholders of the Company (or, if no shareholder approval is required, by the Board alone) of the dissolution or liquidation of the Company, other than in the context of a Business Combination that does not constitute a Change in Control Event under paragraph (iii) below;

 

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(ii)                                  The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), referred to herein as a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (1) the then-outstanding ordinary shares of the Company (the “Outstanding Company Common Stock”) or (2) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this paragraph (ii), the following acquisitions shall not constitute a Change in Control Event; (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or its Affiliates or a successor, (D) any acquisition by any entity pursuant to a Business Combination (as defined herein), (E) any acquisition by a Person described in and satisfying the conditions of Rule 13d-1(b) promulgated under the Exchange Act, or (F) any acquisition by a Person who is the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of the Outstanding Company Common Stock and/or the Outstanding Company Voting Securities on the Effective Date (or an Affiliate, heir, descendant, or related party of or to such Person); or

 

(iii)                               Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or any corporation or other entity a majority of whose outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company (a “Subsidiary”), a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any of its Subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (1) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets directly or through one or more subsidiaries), and (2) no Person (excluding any individual or entity described in clauses (C), (E) or (F) of paragraph (ii) above) beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, more than 50% of, respectively, the then-outstanding shares of common stock of the entity resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such entity, except to the extent that the ownership in excess of 50% existed prior to the Business Combination;

 

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provided, however, that a transaction shall not constitute a Change of Control if it is in connection with the underwritten public offering of the securities of the Company.

 

(e)                                  As used herein, “Constructive Termination” shall mean a resignation by the Executive after the occurrence of any of the following (without the Executive’s express written consent): (i)  a material reduction of the Executive’s duties, authorities or responsibilities relative to the Executive’s duties, authorities or responsibilities in effect immediately prior to such reduction, or the removal of the Executive from such duties, authorities and responsibilities, unless the Executive is provided with substantially comparable duties, authorities and responsibilities; (ii) (ii) a material reduction by the Company of the Executive’s Base Salary or Incentive Bonus opportunity as in effect immediately prior to such reduction; (iii) the relocation of the Executive to a facility or a location more than fifty (50) miles from his current location or (iv) a material breach by the Company of this Agreement; provided, however, that any such condition or conditions, as applicable, shall not constitute grounds for Constructive Termination unless both (x) the Executive provides written notice to the Company of the condition claimed to constitute grounds for Constructive Termination within thirty (30) days of the initial existence of such condition(s) (such notice to be delivered in accordance with Section 18), and (y) the Company fails to remedy such condition(s) within thirty (30) days of receiving such written notice thereof; and provided, further, that in all events the termination of the Executive’s employment with the Company shall not constitute a Constructive Termination unless such termination occurs not more than ninety (90) days following the initial existence of the condition claimed to constitute grounds for Constructive Termination.

 

(f)                                   As used herein, “Disability” shall mean a physical or mental impairment which, as reasonably determined by the Board, renders the Executive unable to perform the essential functions of his employment with the Company, even with reasonable accommodation that does not impose an undue hardship on the Company, for more than 180 days in any 12-month period, unless a longer period is required by applicable law, in which case that longer period would apply.

 

(g)                                  As used herein, “Involuntary Termination” shall mean a Constructive Termination or a termination of the Executive by the Company without Cause.  For purposes of clarity, the term Involuntary Termination does not include a termination of the Executive’s employment due to the Executive’s death or Disability.

 

(h)                                 As used herein, the term “Person” shall be construed broadly and shall include, without limitation, an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.

 

5.6.                            Notice of Termination.  Any termination of the Executive’s employment under this Agreement shall be communicated by written notice of termination from the terminating party to the other party.  The notice of termination shall indicate the specific provision(s) of this Agreement relied upon in effecting the termination.  This notice of termination must be delivered in accordance with Section 18 and must indicate the specific provision(s) of this Agreement relied upon in effecting the termination.

 

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6.                                      Confidentiality; Inventions; Non-Competition; Non-Solicitation.

 

6.1                               Confidential Information.

 

(a)                                 Company Information.  The Executive hereby agrees at all times during the term of his or her employment and after termination, to hold in the strictest confidence, and not to use, except for the benefit of the Company Group, or to disclose to any person, corporation or other entity without written consent of the Company, any Confidential Information. The Executive understands that “Confidential Information” means any proprietary or confidential information of the Company Group, its affiliates, their clients, customers or partners, and the Company Group’s licensors, including, without limitation, technical data, trade secrets, research and development information, product plans, services, customer lists and customers (including, but not limited to, customers of the Company Group on whom the Executive called or with whom the Executive became acquainted during the term of his or her employment), supplier lists and suppliers, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, personnel information, marketing, finances, information about the suppliers, joint ventures, licensors, licensees, distributors and other persons with whom the Company Group does business, information regarding the skills and compensation of other employees of the Company Group or other business information disclosed to the Executive by or obtained by the Executive from the Company Group, its affiliates, or their clients, customers or partners either directly or indirectly in writing, orally or by drawings or observation of parts or equipment.

 

(b)                                 Company Property.  The Executive understands that all documents (including computer records, facsimile and e-mail) and materials created, received or transmitted in connection with his or her work or using the facilities of the Company Group are property of the Company Group and subject to inspection by the Company Group, at any time. Upon termination of the Executive’s employment with the Company (or at any other time when requested by the Company), the Executive will promptly deliver to the Company all documents and materials of any nature pertaining to his or her work with the Company and will provide written certification of his or her compliance with this Agreement. Under no circumstances will the Executive have, following his or her termination, in his or her possession any property of the Company Group, or any documents or materials or copies thereof containing any Confidential Information. In the event of the termination of the Executive’s employment, the Executive hereby agrees to sign and deliver the “Termination Certification” attached hereto as Exhibit A.

 

(c)                                  Former Employer Information.  The Executive hereby agrees that he or she will not, during his or her employment with the Company, improperly use or disclose any proprietary information or trade secrets of any former employer or other person or entity and that he or she will not bring onto the premises of the Company Group any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity. The Executive hereby agrees to indemnify the Company Group and hold it harmless from all claims, liabilities, damages and expenses, including reasonable attorneys fees and costs for resolving disputes, arising out of or in connection with any violation or claimed violation of a third party’s rights resulting from any use by the Company Group of such proprietary information or trade secrets improperly used or disclosed by the Executive.

 

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(d)                                 Third Party Information.  The Executive recognizes that the Company Group has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company Group’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. The Executive hereby agrees to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out his or her work for the Company consistent with the Company Group’s agreement with such third party.

 

6.2                               Inventions.

 

(a)                                 Inventions Retained and Licensed.  The Executive has attached hereto, as Exhibit B, a list describing all inventions, original works of authorship, developments, improvements, trade secrets, and IC layout designs/mask works which were made by the Executive prior to his or her employment with the Company which belong to the Executive, which relate to the Company Group’s proposed or current business, products or research and development, and which are not assigned to any member of the Company Group hereunder (collectively referred to as “Prior Inventions”); or, if no such list is attached, the Executive hereby represents that there are no such Prior Inventions. The Executive hereby agrees that he or she will not incorporate any Prior Inventions into any products, processes or machines of the Company Group; provided, however, that if in the course of the Executive’s employment with the Company, he or she incorporates into a product, process or machine of the Company Group a Prior Invention owned by the Executive or in which he or she has an interest, the Executive hereby represents that he or she has all necessary rights, powers and authorization to use such Prior Invention in the manner it is used and such use will not infringe any right of any company, entity or person and, in such a circumstance, each member of the Company Group is hereby granted and shall have a nonexclusive, royalty-free, sublicensable, transferable, irrevocable, perpetual, worldwide license to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, process or machine. The Executive hereby agrees to indemnify the Company Group and hold it harmless from all claims, liabilities, damages and expenses, including reasonable attorneys fees and costs for resolving disputes, arising out of or in connection with any violation or claimed violation of a third party’s rights resulting from any use, sublicensing, modification, transfer, or sale by the Company Group of such Prior Invention.

 

(b)                                 Assignment of Inventions.  The Executive hereby agrees that he or she will promptly make full written disclosure to the Company and the Company Group, will hold in trust for the sole right and benefit of the Company and the Company Group, and hereby assign to the Company and the Company Group, or their respective designee, all of his or her right, title, and interest in and to any and all inventions, ideas, information, designs, original works of authorship, processes, formulas, computer software programs, databases, mask works, developments, concepts, improvements or trade secrets, whether or not patentable or registrable under patent, copyright, circuit layout design or similar laws in China or anywhere else in the world, which he or she may solely or jointly conceive or develop or reduce to practice or cause to be conceived or developed or reduced to practice, during the period of time he or she is in the employ of the Company (whether or not during business hours) that are either related to the scope of his or her employment with the Company or make use, in any manner, of the resources of the Company Group (collectively referred to as “Inventions”).  The Executive hereby acknowledges that the Company or the Company Group shall be the sole owner of all rights, title and interest in the Inventions created hereunder. In the event the foregoing assignment of Inventions to the Company or the Company Group is ineffective for any reason, each member of the Company Group is hereby granted and shall have a royalty-free, sublicensable, transferable, irrevocable, perpetual, worldwide license to make, have made, modify, use, and sell such Inventions as part of or in connection with any product, process or machine. Such exclusive license shall continue in effect for the maximum term as may now or hereafter be permissible under applicable law. Upon expiration, such license, without further consent or action on the Executive’s part, shall automatically be renewed for the maximum term as is then permissible under applicable law, unless, within the six-month period prior to such expiration, the Company and the Executive have agreed that such license will not be renewed. The Executive also hereby forever waives and agrees never to assert any and all rights he or she may have in or with respect to any Inventions even after termination of his or her employment with the Company. The Executive hereby further acknowledges that all Inventions created by him or her (solely or jointly with others) are, to the extent permitted by applicable law, “works made for hire” or “inventions made for hire,” as those terms and correlative terms are defined under applicable law, and all titles, rights and interests in or to such Inventions are or shall be vested in the Company.

 

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(c)                                  Remuneration.  The Executive hereby agrees that the remuneration received by the Executive pursuant to this Agreement with the Company includes any bonuses or remuneration which the Executive may be entitled to under applicable law for any “works made for hire,” “inventions made for hire” or other Inventions assigned to the Company pursuant to this Agreement.

 

(d)                                 Maintenance of Records.  The Executive hereby agrees to keep and maintain adequate and current written records of all Inventions. The records will be in the form of notes, sketches, drawings, and any other format that may be specified by the Company. The records will be available to and remain the sole property of the Company at all times.

 

(e)                                  Patent and Copyright Registrations.  The Executive hereby agrees to assist the Company, or its respective designees, at the expense of the Company, in every proper way to secure the Company’s rights in the Inventions in any and all countries, to further evidence, record and perfect any grant or assignment by the Executive of the Inventions hereunder and to perfect, obtain, maintain, enforce and defend any rights so granted or assigned, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Company, its successors, assigns and nominees the sole and exclusive rights, title and interest in and to such Inventions. The Executive hereby further agrees that his or her obligations to execute or cause to be executed, when it is in his or her power to do so, any such instrument or papers shall continue after the termination of this Agreement. The Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as the Executive’s agent and attorney in fact, to act for and in the Executive’s behalf and stead to execute and file any such documents and to do all other lawfully permitted acts to further the foregoing with the same legal force and effect as if executed by the Executive.

 

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6.3                               Conflicting Employment.  The Executive hereby agrees that, during the term of his or her employment with any member of the Company Group, he or she will not engage in any other employment, occupation, consulting or other business activity related to the business in which the Company Group is now involved or becomes involved during the term of the Executive’s employment, nor will the Executive engage in any other activities that conflict with his or her obligations to the Company Group without the prior written consent of the Company.

 

6.4                               Non-Competition.

 

(a)                                 The Executive hereby agrees that during the course of his or her employment and for a period of two (2) years immediately following the termination of his or her relationship with the Company for any reason, whether with or without good cause or for any or no cause, at the option either of the Company or his or herself, with or without notice, the Executive will not, without the prior written consent of the Company, (A)(i) serve as a partner, employee, consultant, officer, director, manager, agent, associate, investor, or otherwise for, or lend his or her name (or any part, variant or formative thereof), (ii) directly or indirectly, own, purchase, organize or take preparatory steps for the organization of, (iii) build, design, finance, acquire, lease, operate, manage, invest in, work or consult for or otherwise affiliate himself or herself with, any business, in competition with or otherwise similar to the business of the Company Group, (B) deal, directly or indirectly, in a competitive manner with any customers doing business with the Company Group, or (C) transfer, sell, assign, pledge, hypothecate, give, create a security interest in or lien on, place in trust (voting or otherwise), or in any other way dispose of any equity interest in the Company Group beneficially owned by the Executive, as the case may be, to any person which is competitive with any significant aspect of the business of the Company Group. The foregoing covenant shall cover the Executive’s activities in every part of the Territory in which he or she may conduct business during the term of such covenant as set forth above. “Territory” shall mean (i) the People’s Republic of China (for the avoidance of doubt, including Hong Kong, Macau and the island of Taiwan), (ii) Singapore, (iii) the United States of America, and (iv) all other countries of the world; provided that, with respect to clauses (iii) and (iv) of this Section 6.4(a), the Company derives at least five percent (5%) of its gross revenues from such geographic area prior to the date of the termination of the Executive’s relationship with the Company.

 

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(b)                                 The Executive hereby acknowledges that he or she will derive significant value from the Company’s agreement to provide him or her with that Confidential Information of the Company Group to enable him or her to optimize the performance of his or her duties for the Company. The Executive hereby further acknowledges that his or her fulfillment of the obligations contained in this Agreement, including, but not limited to, his or her obligation neither to disclose nor to use the Confidential Information of the Company Group other than for the Company Group’s exclusive benefit and his or her obligation not to compete contained in subsection (a) above, is necessary to protect the Confidential Information of the Company Group and, consequently, to preserve the value and goodwill of the Company Group. The Executive hereby further acknowledges the time, geographic and scope limitations of his or her obligations under subsection (a) above are reasonable, especially in light of the Company Group’s desire to protect their Confidential Information, and that the Executive will not be precluded from gainful employment if he or she is obligated not to compete with the Company Group during the period and within the Territory as described above.

 

(c)                                  The covenants contained in subsection (a) above shall be construed as a series of separate covenants, one for each city, county and state of any geographic area in the Territory. Except for geographic coverage, each such separate covenant shall be deemed identical in terms to the covenant contained in subsection (a) above. If, in any arbitration proceeding, the arbitration panel refuses to enforce any of such separate covenants (or any part thereof), then such unenforceable covenant (or such part) shall be eliminated from this agreement to the extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced. In the event the provisions of subsection (a) above are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then such provisions shall be reformed to the maximum time, geographic or scope limitations, as the case may be, then permitted by such law.

 

(d)                                 The Executive hereby further agrees that, if so expressly required by the applicable laws, he or she will be compensated by the Company in the total amount equal to the minimum amount of compensation required by applicable law (hereinafter referred to as the “Non-Compete Compensation”) upon the termination of his or her employment with the Company for the covenants that the Executive makes in this Section 6.4. The Non-Compete Compensation (if any) will be paid on a monthly basis.

 

6.5                               Notification of New Employer.  In the event that the Executive leaves the employ of the Company, the Executive hereby grants consent to notification by the Company to his or her new employer about his or her rights and obligations under this Agreement.

 

6.6                               Non-Solicitation of Employees and Consultants.  During the Period of Employment and for a period of two (2) years after the Severance Date, the Executive will not directly or indirectly through any other Person induce or attempt to induce any employee or independent contractor of the Company or any Affiliate of the Company to leave the employ or service, as applicable, of the Company or such Affiliate, or in any way interfere with the relationship between the Company or any such Affiliate, on the one hand, and any employee or independent contractor thereof, on the other hand.

 

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6.7                               Non-Interference with Customers.  During the Period of Employment and for a period of two (2) years after the Severance Date, the Executive will not directly or indirectly through any other Person influence or attempt to influence customers, vendors, suppliers, licensors, lessors, joint venturers, associates, consultants, agents, or partners of the Company or any Affiliate of the Company to divert their business away from the Company or such Affiliate, and the Executive will not otherwise interfere with, disrupt or attempt to disrupt the business relationships, contractual or otherwise, between the Company or any Affiliate of the Company, on the one hand, and any of its or their customers, suppliers, vendors, lessors, licensors, joint venturers, associates, officers, employees, consultants, managers, partners, members or investors, on the other hand.

 

6.8                               Cooperation.  Following the Executive’s last day of employment by the Company, the Executive shall reasonably cooperate with the Company and its Affiliates in connection with: (a) any internal or governmental investigation or administrative, regulatory, arbitral or judicial proceeding involving the Company and any Affiliates with respect to matters relating to the Executive’s employment with or service as a member of the Board or the board of directors of any Affiliate (collectively, “Litigation”); or (b) any audit of the financial statements of the Company or any Affiliate with respect to the period of time when the Executive was employed by the Company or any Affiliate (“Audit”).  The Executive acknowledges that such cooperation may include, but shall not be limited to, the Executive making himself available to the Company or any Affiliate (or their respective attorneys or auditors) upon reasonable notice for: (i) interviews, factual investigations, and providing declarations or affidavits that provide truthful information in connection with any Litigation or Audit; (ii) appearing at the request of the Company or any Affiliate to give testimony without requiring service of a subpoena or other legal process; (iii) volunteering to the Company or any Affiliate pertinent information related to any Litigation or Audit; (iv) providing information and legal representations to the auditors of the Company or any Affiliate, in a form and within a time frame requested by the Board, with respect to the Company’s or any Affiliate’s opening balance sheet valuation of intangibles and financial statements for the period in which the Executive was employed by the Company or any Affiliate; and (v) turning over to the Company or any Affiliate any documents relevant to any Litigation or Audit that are or may come into the Executive’s possession.

 

6.9                               Understanding of Covenants.  The Executive acknowledges that, in the course of his employment with the Company and/or its Affiliates and their predecessors, he has become familiar, or will become familiar, with the Company’s and its Affiliates’ and their predecessors’ trade secrets and with other confidential and proprietary information concerning the Company, its Affiliates and their respective predecessors and that his services have been and will be of special, unique and extraordinary value to the Company and its Affiliates.  The Executive agrees that the foregoing covenants set forth in this Section 6 (together, the “Restrictive Covenants”) are reasonable and necessary to protect the Company’s and its Affiliates’ trade secrets and other confidential and proprietary information, good will, stable workforce, and customer relations.

 

-15-

 

Without limiting the generality of the Executive’s agreement in the preceding paragraph, the Executive (i) represents that he is familiar with and has carefully considered the Restrictive Covenants, (ii) represents that he is fully aware of his obligations hereunder, (iii) agrees to the reasonableness of the length of time, scope and geographic coverage, as applicable, of the Restrictive Covenants, (iv) agrees that the Company and its Affiliates currently conducts business throughout the Territory, and (v) agrees that the Restrictive Covenants will continue in effect for the applicable periods set forth above in this Section 6 regardless of whether the Executive is then entitled to receive severance pay or benefits from the Company.  The Executive understands that the Restrictive Covenants may limit his ability to earn a livelihood in a business similar to the business of the Company and any of its Affiliates, but he nevertheless believes that he has received and will receive sufficient consideration and other benefits as an employee of the Company and as otherwise provided hereunder or as described in the recitals hereto to clearly justify such restrictions which, in any event (given his education, skills and ability), the Executive does not believe would prevent him from otherwise earning a living.  The Executive agrees that the Restrictive Covenants do not confer a benefit upon the Company disproportionate to the detriment of the Executive.

 

6.10                        Enforcement.  The Executive agrees that the Executive’s services are unique and that he has access to Confidential Information.  Accordingly, without limiting the generality of Section 17, the Executive agrees that a breach by the Executive of any of the covenants in this Section 6 would cause immediate and irreparable harm to the Company that would be difficult or impossible to measure, and that damages to the Company for any such injury would therefore be an inadequate remedy for any such breach.  Therefore, the Executive agrees that in the event of any breach or threatened breach of any provision of this Section 6, the Company shall be entitled, in addition to and without limitation upon all other remedies the Company may have under this Agreement, at law or otherwise, to obtain specific performance, injunctive relief and/or other appropriate relief (without posting any bond or deposit) in order to enforce or prevent any violations of the provisions of this Section 6, or require the Executive to account for and pay over to the Company all compensation, profits, moneys, accruals, increments or other benefits derived from or received as a result of any transactions constituting a breach of this Section 6 if and when final judgment of a court of competent jurisdiction or arbitrator, as applicable, is so entered against the Executive.  The Executive further agrees that the applicable period of time any Restrictive Covenant is in effect following the Severance Date, as determined pursuant to the foregoing provisions of this Section 6, such period of time shall be extended by the same amount of time that Executive is in breach of any Restrictive Covenant.

 

6.11                        Representations.  The Executive hereby agrees to execute any proper oath or verify any proper document required to carry out the terms of this Agreement. The Executive hereby represents that the Executive’s performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by the Executive in confidence or in trust prior to his or her employment by the Company. The Executive has not entered into, and hereby agrees that he or she will not enter into, any oral or written agreement in conflict with this Section 6.

 

7.                                      Withholding Taxes.  Notwithstanding anything else herein to the contrary, the Company  (or such other member of the Company Group, as the case may be) may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

-16-

 

8.                                      Successors and Assigns.

 

(a)                                 This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives.

 

(b)                                 This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.  Without limiting the generality of the preceding sentence, the Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor or assignee, as applicable, which assumes and agrees to perform this Agreement by operation of law or otherwise.

 

9.                                      Number and Gender.  Where the context requires, the singular shall include the plural, the plural shall include the singular, and any gender shall include all other genders.

 

10.                               Section Headings.  The section headings of, and titles of paragraphs and subparagraphs contained in, this Agreement are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof.

 

11.                               Governing Law.  This Agreement shall be governed by and construed in accordance with the domestic laws of the State of New York without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than the State of New York.

 

12.                               Severability.  It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable under any present or future law, and if the rights and obligations of any party under this Agreement will not be materially and adversely affected thereby, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction, and to this end the provisions of this Agreement are declared to be severable; furthermore, in lieu of such invalid or unenforceable provision there will be added automatically as a part of this Agreement, a legal, valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible.  Notwithstanding the foregoing, if such provision could be more narrowly drawn (as to geographic scope, period of duration or otherwise) so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

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13.                               Entire Agreement.  This Agreement embodies the entire agreement of the parties hereto respecting the matters within its scope.  This Agreement supersedes all prior and contemporaneous agreements of the parties hereto that directly or indirectly bears upon the subject matter hereof (including, without limitation, any offer letter or previous employment agreement).  Any prior negotiations, correspondence, agreements, proposals or understandings relating to the subject matter hereof shall be deemed to have been merged into this Agreement, and to the extent inconsistent herewith, such negotiations, correspondence, agreements, proposals, or understandings shall be deemed to be of no force or effect.  There are no representations, warranties, or agreements, whether express or implied, or oral or written, with respect to the subject matter hereof, except as expressly set forth herein.

 

14.                               Modifications.  This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

 

15.                               Waiver.  Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

16.                               Waiver of Jury Trial.

 

(a)                                 In exchange for the benefits of the speedy, economical and impartial dispute resolution procedure of arbitration, the Executive and the Company, with the advice and consent of their selected counsel, choose to forego their right to resolution of their disputes in a court of law by a judge or jury, and instead agree that any controversy arising out of or relating to this Agreement, its enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection with any of its provisions, or any other controversy arising out of Executive’s employment, including, but not limited to, any state or federal statutory claims, shall be submitted to arbitration in Hong Kong, before a sole arbitrator (the “Arbitrator”).  If the parties hereto cannot agree on the nomination of an arbitrator, the appointment shall be made by the Hong Kong International Arbitration Centre (the “Centre”).  The arbitrator shall decide any dispute submitted by the parties strictly in accordance with the substantive law of the State of New York of the United States and shall not apply any other substantive law.  The arbitration tribunal shall apply the UNCITRAL Arbitration Rules as administered by the Centre at the time of the arbitration.  Final resolution of any dispute through arbitration may include any remedy or relief which the Arbitrator deems just and equitable, including any and all remedies provided by applicable state or federal statutes.  At the conclusion of the arbitration, the Arbitrator shall issue a written decision that sets forth the essential findings and conclusions upon which the Arbitrator’s award or decision is based.  Any award or relief granted by the Arbitrator hereunder shall be final and binding on the parties hereto and may be enforced by any court of competent jurisdiction.  The costs of any arbitration shall be borne by the losing party or parties, unless otherwise determined by the arbitrator.

 

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(b)                                 Notwithstanding the foregoing, the request by either party for preliminary or permanent injunctive relief, whether prohibitive or mandatory, shall not be subject to arbitration and may be adjudicated only by any federal or state court located in the city of New York, New York having jurisdiction over the parties and the subject matter. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING HEREUNDER.

 

(c)                                  This Section 16 shall not be construed to limit (1) the Company’s right to obtain relief or to defend itself against claims by third parties and in connection therewith the Company shall not be requested first to arbitrate such matter or controversy hereunder or to post a bond, or (2) the Company’s right to take any action required by any federal, state or foreign governmental or regulatory authority or which the Company deems necessary for the safety and soundness of the Company and/or the Company’s compliance with applicable laws and regulations.

 

17.                               Remedies.  Each of the parties to this Agreement and any such person or entity granted rights hereunder whether or not such person or entity is a signatory hereto shall be entitled to enforce its rights under this Agreement specifically to recover damages and costs for any breach of any provision of this Agreement and to exercise all other rights existing in its favor.  The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that each party may in its sole discretion apply to any court of law or equity of competent jurisdiction for specific performance, injunctive relief and/or other appropriate equitable relief (without posting any bond or deposit) in order to enforce or prevent any violations of the provisions of this Agreement.

 

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18.                               Notices.

 

(a)                                 All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii) sent by internationally recognized courier with next-day or second-day delivery.  Any notice shall be duly addressed to the parties as follows:

 

(i)             if to the Company:

 

Address:                         Floor 4, Tianjian Tianranju Commercial Center, No.2006 Xiangmeibei Road, Futian District, Shenzhen, Guangdong Province 518045, the People’s Republic of China

 

	
Attention:
    	
 
    	
Ms. Yingying Chen
    
	
 
    	
 
    	
 
    
	
Tel:
    	
 
    	
+86 755 8294 5250
    
	
Fax:
    	
 
    	
+86 755 8299 5963
    

 

(ii)          if to the Executive:

 

	
Address:
    	
_________
    
	
Tel:
    	
_________
    

 

(b)                                 Any party may alter the address to which communications or copies are to be sent by giving notice of such change of address in conformity with the provisions of this Section 18 for the giving of notice.  Any communication shall be effective when delivered by hand, when otherwise delivered against receipt therefor, or three (3) business days after being sent in accordance with the foregoing.

 

19.                               Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument.  This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.  Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

20.                               Legal Counsel; Mutual Drafting.  Each party recognizes that this is a legally binding contract and acknowledges and agrees that they have had the opportunity to consult with legal counsel of their choice.  Each party has cooperated in the drafting, negotiation and preparation of this Agreement.  Hence, in any construction to be made of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such language.  The Executive agrees and acknowledges that he has read and understands this Agreement, is entering into it freely and voluntarily, and has been advised to seek counsel prior to entering into this Agreement and has had ample opportunity to do so.

 

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21.                               Section 409A; Section 457A.

 

(a)                                 It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the U.S. Internal Revenue Code (including the Treasury regulations and other published guidance relating thereto) (“Code Section 409A”) so as not to subject the Executive to payment of any additional tax, penalty or interest imposed under Code Section 409A.  The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest extent reasonably possible) the intended benefit payable to the Executive.

 

(b)                                 If the Executive is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Executive’s “separation from service” (within the meaning of Code Section 409A), the Executive shall not be entitled to any payment or benefit pursuant to Section 5.3(b) until the earlier of (i) the date which is six (6) months after his or her separation from service for any reason other than death, or (ii) the date of the Executive’s death.  The provisions of this Section 21(b) shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A.  Any amounts otherwise payable to the Executive upon or in the six (6) month period following the Executive’s separation from service that are not so paid by reason of this Section 21(b) shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Executive’s separation from service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of the Executive’s death).

 

(c)                                  To the extent that any benefits reimbursements pursuant to Section 4.2 or 5.3(b)(ii) are taxable to the Executive, any reimbursement payment due to the Executive pursuant to any such provision shall be paid to the Executive on or before the last day of the Executive’s taxable year following the taxable year in which the related expense was incurred.  The benefits and reimbursements pursuant to such provisions are not subject to liquidation or exchange for another benefit and the amount of such benefits and reimbursements that the Executive receives in one taxable year shall not affect the amount of such benefits or reimbursements that the Executive receives in any other taxable year.

 

(d)                                 It is intended that any amounts payable under this Agreement shall not be subject to tax by operation of Section 457A of the U.S. Internal Revenue Code (including the Treasury regulations and other published guidance relating thereto) (“Code Section 457A”) so as not to subject the Executive to payment of any additional tax, penalty or interest imposed under Code Section 457A.  The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 457A yet preserve (to the nearest extent reasonably possible) the intended benefit payable to the Executive.

 

[The remainder of this page has intentionally been left blank.]

 

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IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the Effective Date.

 

	
 
    	
“COMPANY”
    
	
 
    	
 
    
	
 
    	
Meten International   Education Group
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

-S-1-

 

IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the Effective Date.

 

	
 
    	
“EXECUTIVE”
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    

 

-S-2-

 

EXHIBIT A

 

TERMINATION CERTIFICATE

 

This is to certify that I do not have in my possession, nor have I failed to return, any Confidential Information belonging to Meten International Education Group (the “Company”), its subsidiaries, affiliates, successors or assigns (together, the “Company Group”).  For purposes of this Termination Certificate, the term “Confidential Information” shall have the meaning assigned thereto in my Employment Agreement with the Company, dated on or about _______ 2019 (the “Agreement”).

 

I further certify that I have complied with all the terms of the Agreement signed by me, including all of the provisions of Section 6 of the Agreement.

 

I further agree that, in compliance with the Agreement, I will preserve as confidential all Confidential Information.

 

I further agree that for two (2) years from this date, I will not either directly or indirectly solicit, induce, recruit or encourage any employees of the Company or the Company Group to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of the Company or the Company Group and/or any suppliers, customers or consultants of the Company or the Company Group, either for myself or for any other person or entity.

 

Date: ________

 

                                        

 

-A-1-

 

EXHIBIT B

 

LIST OF PRIOR INVENTIONS

 

	
Title
    	
 
    	
Date
    	
 
    	
Identifying Number
   or Brief Description
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

	
               No   inventions or improvements
    	
 
    
	
 
    	
 
    
	
______ Additional Sheets Attached
    	
 
    
	
 
    	
 
    
	
Signature of Employee:____________
    	
 
    
	
 
    	
 
    
	
Print Name of Employee:____________
    	
 
    
	
 
    	
 
    
	
Date:                 
    	
 
    

 

-B-1-Exhibit 10.5

 

Business Cooperation Agreement

 

amongst

 

Zhuhai Meizhilian Education Technology Co., Ltd.

Domestic Affiliates as shown in Annex I

 

and

 

Meten Education Shareholders as shown in Annex II

 

November 23, 2018

 

 

Table of Contents

 

	
I. Definition and   Interpretation
    	
5
    
	
2. Representations,   Warranties and Covenants
    	
7
    
	
3. Form of   Cooperation
    	
9
    
	
4. Financial Management   and Payment of Fees
    	
21
    
	
5. Liability for Breach   of Contract
    	
22
    
	
6. Governing Laws and   Dispute Resolution
    	
22
    
	
7. Confidentiality
    	
24
    
	
8. Severability
    	
24
    
	
9. Term
    	
25
    
	
10. Amendment
    	
25
    
	
11. Force Majeure
    	
26
    
	
12. Change of   Circumstances
    	
26
    
	
13. Miscellaneous
    	
27
    
	
Annex I: Domestic   Affiliates
    	
23
    
	
Annex II: Meten   Education Shareholders
    	
25
    

 

1

 

This Business Cooperation Agreement (hereinafter referred to as “this Agreement”) was signed by the following parties on November 23, 2018:

 

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

 

B.                The Domestic Affiliates, which refer to Shenzhen Meten International Education Co., Ltd. and its affiliated subsidiaries and training centers and schools (as shown in Annex I of this Agreement, any or all of the aforementioned entities are referred to as “Domestic Affiliates”);

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

I.                    Yongchao Chen, a Chinese citizen whose ID number is 430702197801092017, and the residential address is at 6D, Building 27, Gang Zhong Lv Garden, No. 21 Nongyuan Road, Futian District, Shenzhen, Guangdong Province;

 

(The above items C to I, are hereinafter collectively referred to as “Meten Education Individual Shareholders”)

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(The above items J to S are hereinafter collectively referred to as “Meten Education Institution Shareholders”)

 

(The above items C to S are hereinafter collectively referred to as “Meten Education Shareholders”)

 

In this Agreement, WFOE, Domestic Affiliates, and Meten Education Shareholders are collectively referred to as “Parties”, and each a “Party”.

 

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Whereas:

 

1.                  The Parties unanimously agreed that WFOE will cooperate closely with the Domestic Affiliates on management, consulting, technical services and other matters related to the offline English training business and tourism business. According to the unanimous consent of all Parties, WFOE will provide management, consulting, technical services and other related services related to the offline English training and tourism business to the Domestic Affiliates.

 

2.                  The Parties unanimously agreed that the Meten Education Shareholders, as the direct and/or indirect beneficial owner of the Domestic Affiliates, shall take all legal and necessary measures to promote the smooth development and implementation of the cooperation between the WFOE and the Domestic Affiliates.

 

3.                  The Parties unanimously agreed to sign this Agreement and prescribe the rights and obligations of the WFOE and other Parties and the specific content, method, operation and other major cooperation matters in the process of cooperation .

 

In order to clarify the rights and obligations of all Parties, this Agreement has been entered into by the Parties through friendly negotiations and shall be binding upon all Parties.

 

I. Definition and Interpretation

 

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

 

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

 

“Meten Education Individual Shareholders” means Jishuang Zhao, Siguang Peng, Yupeng Guo, Yun Feng, Jun Yao, Tong Zeng and Yongchao Chen.

 

“Meten Education Institution Shareholders” means Xinyu Meilianzhong Investment Management Center (Limited Partnership), Shenzhen Daoge No.21 Investment Partnership (Limited Partnership), Zhihan (Shanghai) Investment Center (Limited Partnership), Xinyu Meilianxing Investment Management Center (Limited Partnership), Xinyu Meilianchou Investment Management Center (Limited Partnership), Shenzhen Daoge No.11 Education Investment Partnership (Limited Partnership), Hangzhou Muhua Equity Investment Fund Partnership (Limited Partnership), Shenzhen Daoge Growth No. 3 Investment Fund Partnership (Limited Partnership), Shenzhen Daoge Growth No. 6 Investment Fund Partnership (Limited Partnership) and Shenzhen Daoge Growth No. 5 Investment Fund Partnership (Limited Partnership).

 

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“Meten Education Shareholders” means Jishuang Zhao, Siguang Peng, Yupeng Guo, Yun Feng, Jun Yao, Tong Zeng, Yongchao Chen, Xinyu Meilianzhong Investment Management Center (Limited Partnership), Shenzhen Daoge No.21 Investment Partnership (Limited Partnership, Zhihan (Shanghai) Investment Center (Limited Partnership), Xinyu Meilianxing Investment Management Center (Limited Partnership), Xinyu Meilianchou Investment Management Center (Limited Partnership), Shenzhen Daoge No.11 Education Investment Partnership (Limited Partnership), Hangzhou Muhua Equity Investment Fund Partnership (Limited Partnership), Shenzhen Daoge Growth No.3 Investment Fund Partnership (Limited Partnership), Shenzhen Daoge Growth No.6 Investment Fund Partnership (Limited Partnership) and Shenzhen Daoge Growth No.5 Investment Fund Partnership (Limited Partnership).

 

“Domestic Affiliates” means Meten Education and its controlled limited liability companies and private non-enterprise legal entities (as shown in Annex I of this Agreement, any or all of the aforementioned entities are referred to as “Domestic Affiliates”).

 

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

 

“License” means all permits, licenses, registrations, approvals and authorizations required for the operation of a Domestic Affiliates.

 

“Business” means all services and businesses provided or operated by a Domestic Affiliates from time to time in accordance with the licenses it has obtained, including but not limited to offline English training business and tourism business.

 

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

 

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

 

2. Representations, Warranties and Covenants

 

1.                  On the date of this Agreement, WFOE makes the following representations, warranties and covenants:

 

a)                 WFOE is a foreign-invested limited liability company legally established and validly existing in accordance with the laws of PRC and has independent legal personality;

 

b)                 WFOE has the right to sign and perform this Agreement, and it has obtained all necessary and appropriate approvals and authorizations for the signing and performance of this Agreement;

 

c)                  This Agreement constitutes the legally valid and enforceable obligations binding on the WFOE on the effective date of this Agreement;

 

d)                 WFOE guarantees that it will use its best effort to provide relevant services to the Domestic Affiliates in accordance with the relevant laws, regulations, regulatory documents and bylaws;

 

e)                  WFOE’s signing and performance of this Agreement does not violate the currently valid laws, regulations, rules applicable to it or its bylaws. Its signing and performance of this Agreement does not violate any court judgment or arbitral award, or any administrative decision, approval, license or any other agreement under which it is a party or that is binding on it, and will not result in the suspension, revocation, confiscation or expiration (with failure to renew) of any approval, license or qualification of the government department applicable to it.

 

2.                  Prior to the termination of this Agreement, each of the Domestic Affiliates shall makes the following representations, warranties and covenants:

 

a)                 It is a limited liability company and/or private non-enterprise unit legally established and validly existing in accordance with the laws of PRC and has independent legal personality;

 

b)                 It has the right to sign and perform this Agreement, and it has obtained all necessary and appropriate approvals and authorizations for the signing and performance of this Agreement;

 

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c)                  This Agreement constitutes the legally valid and enforceable obligation binding on it on the effective date of this Agreement;

 

d)                 All documents, materials and information submitted by the Domestic Affiliates to WFOE before and after the signing of this Agreement are true, complete and accurate, and there are no falsehoods, omissions or serious misleading;

 

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

 

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

 

g)                  The Domestic Affiliates will strictly abide by the provisions under this Agreement and will not conduct any acts/inactions that will affect the validity and enforceability of this Agreement;

 

h)                 The signing and performance of the Agreement by the Domestic Affiliates does not violate the existing valid laws, regulations, regulations applicable to it or its bylaws. Its signing and performance of this agreement does not violate any court judgment or arbitral award or any administrative decision, approval, license or any other agreement under which it is a party or that is binding on its equity interest or other assets, and will not result in the suspension, revocation, confiscation or expiration (with failure to renew) of any approval, license or qualification of the government department applicable to it.

 

3.                  On the  date of this Agreement, each of the Meten Education Shareholders makes the following representations, warranties and covenants, severally but not jointly:

 

a)                 It has full civil capacity and legal capacity to enter into this Agreement and enjoy rights and undertake obligations under this Agreement;

 

b)                 On the effective date of this Agreement, Meten Education Shareholders are the legal owner of the equities of Meten Education, and Meten Education Shareholders holds a total of 100% of the Meten Education’s equities;

 

c)                  In addition to the rights restrictions set on the equities due to the Cooperation Agreements, the equities held by Meten Education Shareholders in Meten Education is free from any other encumbrances or rights restrictions;

 

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d)                 This Agreement is signed by them and constitutes legal, valid and binding obligations on them;

 

e)                  All documents, materials and information submitted by the Meten Education Shareholders to WFOE before and after the signing of this Agreement are true, complete and accurate, without any falsehood, omission or serious misleading;

 

f)                   Meten Education Shareholders will strictly abide by the terms of this Agreement and will not conduct any act/inaction that would affect the validity and enforceability of this Agreement;

 

g)                  Its performance of this agreement does not violate the currently valid laws, regulations or regulations applicable to it. Its signing and performance of this Agreement does not violate any court judgment, arbitral award any administrative decision or any other agreement under which it is a party or that is binding on its equity interest or other assets.

 

3. Form of Cooperation

 

1.                  In order to carry out comprehensive cooperation, in addition to this Agreement, at the same time as the execution of this agreement, certain Parties have signed a series of Cooperation Agreements, including but not limited to, the Exclusive Technical Service and Management Consulting Agreement, the Exclusive Call Option Agreement, the Equity Pledge Agreement, the Shareholders’ Rights Entrustment Agreement and the Shareholders’ Rights Power of Attorney.  The Parties confirmed that through the signing of the Cooperation Agreements, various business relationships have been established between WFOE and the Domestic Affiliates, and WFOE will provide Domestic Affiliates with technical services, management support services, consulting services and intellectual property licenses required for the conducting of offline English training business and tourism business activities, including but not limited to preparation, selection and/or recommendation of training centers/schools courses and textbooks, recruitment of teachers and other staff, training support, admissions support,, public relations maintenance, market research and development, management and marketing consulting and other related services, and the payment of various amounts that the Domestic Affiliates should pay to WFOE under such agreements. Therefore, the daily operating activities of the Domestic Affiliates will have a substantial impact on their ability to pay the corresponding amount to WFOE.

 

2.                  All Parties unanimously agree that the comprehensive cooperation established by the Parties through the signing of the Cooperation Agreements is exclusive. Unless the WFOE has agreed in writing in advance, during the valid period of the Cooperation Agreements, the Domestic Affiliates, Meten Education Shareholders are not allowed to negotiate with any third party or conduct any form of cooperation that competes or conflicts with or is similar to the above cooperation.

 

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3.                  In order to ensure the performance of the Cooperation Agreements, the Domestic Affiliates shall abide by the following provisions, and if the Domestic Affiliates establish any subordinate enterprises and units in the future, the Domestic Affiliates shall prompt their subordinate enterprises and units to comply with the following provisions:

 

a)                 Cautiously and effectively conduct offline English training business and tourism business activities in accordance with good financial and business standards, and maintain the asset value of Domestic Affiliates and the quality and level of offline English training and teaching and tourism services;

 

b)                 Prepare its development plan and annual work plan in accordance with the instructions of the WFOE;

 

c)                  Engage in offline English training business, tourism business and other related businesses with the assistance of WFOE;

 

d)                 Conduct related business, manage day-to-day operations and conduct financial management in accordance with WFOE’ s advice, recommendations, guidelines and other business instructions;

 

e)                  Implement the WFOE’ s advice on the appointment and dismissal of senior management and staff;

 

f)                   Adopt WFOE’ s recommendations, guidelines and plans for its strategic development;

 

g)                  Based on the purpose of developing offline English training business and tourism business, continue to operate related businesses and maintain the timely updates and continuous effectiveness of the relevant licenses and permits owned by them;

 

h)                 At the request of the WFOE, provide related materials on the business operation management and financial status of the Domestic Affiliates, and promptly inform WFOE of any or potential significant adverse effects in its business and business operation processes, and use their best efforts to prevent the occurrence of such events and/or increase in loss;

 

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i)                     At the request of the WFOE, purchase from the insurance company agreed by the WFOE and holds insurance for the assets and business of the Domestic Affiliates. The amount and type of the insurance shall be the same as those usually purchased by the companies and private non-enterprise units operating similar businesses or having similar assets or properties in the same region.

 

Meten Education Shareholders severally but not jointly covenant that they will procure and ensure that the above obligations are fulfilled.

 

4.                  Meten Education Shareholders agree that they will ensure the person designated by WFOE to be the director (council) of the Domestic Affiliates in accordance with the laws and regulations and the procedures stipulated in the bylaws of the Domestic Affiliates, and ensure that the person recommended by WFOE to be the chairman of directors (councils) (if any) of the Domestic Affiliates, and the person designated by the WFOE to be the manager, chief financial officer and other senior managements of the Domestic Affiliates.

 

5.                  If the director (council) or senior management designated by the WFOE in Section 4 above no longer has a labor or employment relationship with the WFOE, whether by voluntary resignation or dismissal by WFOE, it will lose the qualification to hold any position in the Domestic Affiliates. .  In such a case, other persons designated by the WFOE shall be appointed to the corresponding positions in accordance with the provisions of Section 4 above.

 

6.                  For the purposes of Sections 4 and 5 above, the Domestic Affiliates shall, in accordance with the law, the bylaws of the Domestic Affiliates and the provisions of this Agreement, take all necessary internal and external procedures to legally complete the above dismissal and appointment.

 

7.                  The Domestic Affiliates will provide the WFOE with all the information on the operation and financial status of the Domestic Affiliates in full compliance with the requirements of the WFOE.

 

8.                  If any investigation, litigation, arbitration, administrative proceedings or other legal proceedings involving the assets, business and income of a Domestic Affiliates occurs or may occur, the Domestic Affiliates undertake to immediately notify the WFOE of the above situations.

 

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9.                  Meten Education Shareholders hereby confirmed that they have authorized WFOE or person designated by WFOE to exercise all voting rights as Meten Education Shareholders in the shareholding meeting of Meten Education by signing the Shareholders’ Rights Entrustment Agreement and the Shareholders’ Power of Attorney with the WFOE.  Meten Education Shareholders agree that they will provide all assistance to the WFOE in exercising such rights, including but not limited to, at any time, in accordance with the requirements of the WFOE, providing to or withdraw from the person designated by WFOE to the power of attorney related to the entrusted matters.

 

10.           The Domestic Affiliates agrees that, without the prior written consent of WFOE, the Domestic Affiliates shall not declare or actually distribute to the Meten Education Shareholder any teaching revenues or any other income or benefit (regardless of its specific form); Meten Education Shareholders agree, if it obtains any teaching revenues or any other income or benefits (regardless of its specific form) from its Domestic Affiliates, it shall, at the time of realization, transfer such proceeds or benefits to WFOE without any conditions and compensation.

 

11.           In the event that the WFOE is to be dissolved, liquidated, bankrupt or reorganized, Meten Education Shareholders and the Domestic Affiliates unconditionally agree that the other persons designated by the Proposed Listed Company will inherit the rights and obligations of the WFOE under the Cooperation Agreements and agree to sign any necessary documents, take all necessary measures to cooperate with the person designated by the Proposed Listed Company to realize the smooth inheritance of the aforementioned contractual rights and obligations; or Meten Education Shareholders agree, according to the instructions of the Proposed Listed Company, legally procure the sale or disposal in other means in accordance with the instructions of Proposed Listed Company of the direct and/or indirect equities held by the Meten Education Shareholders in the Domestic Affiliates, and procure the free transfer of the full price from the disposal in such means of the direct and / or indirect equities held by the Meten Education Shareholders in the Domestic Affiliates to the Proposed Listed Company or other persons designated by the Proposed Listed Company; or Meten Education Shareholders agree to, in accordance with the instructions of the Proposed Listed Company, legally procure the sale or disposal in other means in accordance with the instructions of Proposed Listed Company of part or all of the assets of the Domestic Affiliates, and procure the free transfer of the part of the price from the disposal in such legal means of the assets of the Domestic Affiliates that shall be attributed to the Meten Education Shareholders to the Proposed Listed Company or the persons designated by the Proposed Listed Company.

 

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12.           Meten Education Shareholders agree and not jointly covenant that, in the event of the dissolution or liquidation of the Domestic Affiliates, firstly, the WFOE and/or its authorized persons shall be entitled to exercise all shareholders ‘ and/or organizers ‘ rights on behalf of the shareholders and/or organizers of the Domestic Affiliates, including but not limited to the rights to decide on the dissolution or liquidation of Domestic Affiliates, designate and appoint members of the liquidation group of the Domestic Affiliates and/or their agents, approve the liquidation plan and liquidation report; secondly, the shareholders and/or organizers of the Domestic Affiliates agree to freely transfer to the WFOE or other persons designated by the Proposed Listed Company, all the properties obtained or entitled to it as the shareholders and/or organizers of the Domestic Affiliates due to the dissolution or liquidation of the Domestic Affiliates, and direct the liquidation group of the Domestic Affiliates to directly transfer the above property to the WFOE and/or other persons designated by the Proposed Listed Company; thirdly, if in accordance with the laws of PRC in force at that time, the foregoing alleged transfer shall not be free, except for the paid transfer and direct delivery according to the instructions, Meten Education Shareholders further agree to return the transfer consideration in full and appropriate method to the WFOE and/or other person designated by the Proposed Listed Company, and guarantee that WFOE and/or other persons designated by the Proposed Listed Company are not subject to any  loss.

 

13.           If Meten Education’ s capital will be increased by Meten Education Shareholders, Meten Education Shareholders agree and confirm that they shall pledge all the shares corresponding to the increase in the registered capital of the Meten Education to the WFOE as the guarantee for the performance of the obligations under the Cooperation Agreements and the debt repayment. The Parties agree that Meten Education Shareholders shall prepare the agreements related to the pledge of the corresponding part of the capital increase before the capital increase of Meten Education, and sign the equity pledge agreement on the date of completion of the industrial and commercial capital increase registration, and complete the equity pledge registration procedure as soon as possible.

 

14.           If the guarantee period specified in the Equity Pledge Agreement expires, or the guarantee period registered by the relevant pledge registration authority expires, and the agreements other than the Equity Pledge Agreement among the Cooperation Agreements are still valid, the relevant guarantor shall continue to provide guarantee for the performance of the obligations under the Cooperation Agreements and the debt repayment with the equity of the Meten Education that it holds, and the scope of the collateral provided shall not be less than the scope of the collateral under the original guarantee contract, and such guarantees continued to be provided shall be satisfactory to the WFOE and the Proposed Listed Company, and the relevant guarantors will do their best to register the pledges and other matters with the relevant registration authorities.

 

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15.           Meten Education Shareholders and Domestic Affiliates hereby confirm and agree that, unless they have obtained the prior written consent of WFOE or the person designated by WFOE, Meten Education Shareholders and Domestic Affiliates will not conduct or procure any activity or transaction that may materially affect the assets, business, personnel, obligations, rights or activities or transactions operated by the Domestic Affiliates, , nor will they engage in or procure any activity or transaction that has the potential material effect on the ability of the Meten Education Shareholders and Domestic Affiliates to perform their obligations under the Cooperation Agreements. including but not limited to:

 

a)                 The establishment of any subordinate enterprises and units of Domestic Affiliates, including subsidiaries, branches and private non-enterprise units;

 

b)                 Carrying out any activities beyond the normal business scope of the Domestic Affiliates or its subsidiaries or units, or change of the operation mode of the Domestic Affiliates or their subsidiaries or units;

 

c)                  The merge, division, change of organizational form, dissolution, and liquidation of Domestic Affiliates and/or their subordinate enterprises or units;

 

d)                 Any borrowing, loans incurred by, or the inheritance or acceptance of, or providing any guarantee for any debt by Meten Education Shareholders from or to the Domestic Affiliates or their subsidiaries or units;

 

e)                  Any borrowing, loans incurred by, or the inheritance or acceptance of, or providing any guarantee for any debt by the Domestic Affiliates or their affiliated enterprise, unless such debt incurs during the ordinary course of business of the Domestic Affiliates and the amount of each debt is less than RMB 500,000;

 

f)                   Alteration or dismissal of any directors (councils), supervisors of the Domestic Affiliates or their subsidiaries or units or the alteration of any senior management personnel of the Domestic Affiliates or their subsidiaries or units, including but not limited to managers, deputy managers, chief financial officers, technical directors, etc., or increase or decrease of the remuneration and benefits of the directors (councils), headmasters, supervisors, managers and other senior management personnel of the Domestic Affiliates or their subsidiaries or units, or alteration of the terms and conditions of employment of the directors (councils), headmasters, supervisors, managers and other senior management personnel of the Domestic Affiliates or their subsidiaries or units;

 

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g)                  Selling, transferring, lending to, or authorizing any third party other than the WFOE or its designee to use or otherwise dispose of the assets or rights of the Domestic Affiliates or their subsidiaries or units, including but not limited to the domain name, trademark, intellectual property, and proprietary technology registered by the Domestic Affiliates or their subsidiaries or units, or any assets or rights purchased by the Domestic Affiliates or its subsidiaries or units from the third party, other than assets for disposed or purchased by the Domestic Affiliates required for its daily operation, and the where the value of the assets involved in the transaction does not exceed RMB 500,000;

 

h)                 Sale of shares and/or organizer rights in Domestic Affiliates or their subsidiaries or units to any third party other than WFOE or its designee, or increase or decrease of the registered capital of Domestic Affiliates or their subsidiaries or units; or change of the structure of equities and/or organizer rights of the Domestic Affiliates or their subsidiaries or units in any method;

 

i)                     Providing guarantees with the equity and/or organizer rights, assets or rights of Domestic Affiliates or their subsidiaries or units to any third party other than WFOE or its designees or procuring the Domestic Affiliates or their subsidiaries or units to provide any other form of guarantee, or impose any other encumbrances on the equity and/or organizer rights of or the assets owned by the Domestic Affiliates or their subsidiaries or units;

 

j)                    Amendment, modification or revocation of the licenses of the Domestic Affiliates or their subsidiaries or units;

 

k)                 Modification of the bylaws of the Domestic Affiliates or their subsidiaries or units or change of the business scope of the Domestic Affiliates or their subsidiaries or units;

 

l)                     Change of the normal internal business procedures of the Domestic Affiliates or their subsidiaries or units or modification of any internal rules and regulations, including but not limited to the financial management system, the rules of the board of directors (councils) / shareholders meeting, the rules of work of managers / other administrative leaders;

 

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m)             Not in accordance with the planning or recommendations of the WFOE or the Proposed Listed Company, conducting any transaction or signing any business contract related to the Domestic Affiliates or its subsidiaries or units outside of the existing normal business of the Domestic Affiliates or its subsidiaries or units with any third party;

 

n)                 Allocating dividends, teaching revenues, other payments or loans to shareholders or organizers of Domestic Affiliates or their subsidiaries or units in any way;

 

o)                 Any activity that has or may adversely affect the ability of the Domestic Affiliates or its subsidiaries or units to pay the WFOE, to conduct daily operations, or the business, assets of the Domestic Affiliates or their subsidiaries or units;

 

p)                 Any transaction that has or may adversely affect the cooperation between the WFOE, the Meten Education Shareholders, and the Domestic Affiliates or their subsidiaries or units under the Cooperation Agreements; and

 

q)                 Transferring rights and obligations under this Agreement and other Cooperation Agreements to any third party other than the designated person of WFOE or WFOE, or the establishment or conducting of any cooperation or business relationship that is the same or similar to this cooperation by the Meten Education Shareholders, Domestic Affiliates or their subsidiaries or units with any third parties.

 

16.           Meten Education Individual Shareholders guarantee to WFOE that they had made all reasonable arrangements and signed all necessary documents to ensure when they died, were incapacitated, restricted in their ability to act, divorced, or otherwise their abilities to exercise their (direct and / or indirect) equities of Meten Education were affected, their successor, guardian, spouse, etc. who shall thereby be potentially able to obtain their equities or related rights of Meten Education, may not affect or hinder the performance of the Cooperation Agreements.  Related arrangements include but are not limited to:

 

a)                 Meten Education Individual Shareholders and their spouse unanimously agree that when the Meten Education Individual Shareholders’ capacity was limited or incapacitated, all of their (direct and indirect) equity interests in Meten Education will be transferred without compensation and without conditions to WFOE or other person designated by the Proposed Listed Company. Meten Education Individual Shareholders and their spouse further agree that in these circumstances, Meten Education Individual Shareholders and their spouse, and the guardians of Meten Education Individual Shareholders must be unconditionally and freely, at the request by the WFOE or other persons designated by the Proposed Listed Company, provide all necessary assistance and support to complete the legal procedures related to the transfer of the above equity rights;

 

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b)                 Meten Education Individual Shareholders and their spouse unanimously agreed that when any of Meten Education Individual Shareholders or their spouse dies, all of Meten Education Individual Shareholders’ (direct and indirect) equity interests in Meten Education shall be freely and unconditionally transferred to WFOE or other persons designated by the Proposed Listed Company  and shall not be included as the legal inheritance of the deceased party. Meten Education Individual Shareholders and their spouse unanimously agree that in these circumstances, Meten Education Individual Shareholders and his spouse, the estate administrator of the deceased party must unconditionally and freely, at the request of the WFOE or other person designated by the Proposed Listed Company, provide all necessary assistance and support to complete the legal procedures related to the transfer of equity interests; and

 

c)                  Meten Education Individual Shareholders and their spouses unanimously agree that when the Meten Education Individual Shareholders and their spouse divorced, all of Meten Education Individual Shareholders ‘s (direct and indirect) equity interests in Meten Education shall be transferred without compensation and without conditions to WFOE or other persons designated by the Proposed Listed Company and shall not be included into the scope of the property that needs to be divided and distributed due to divorce. Meten Education Individual Shareholders and their spouse unanimously agree that in these circumstances, Meten Education Individual Shareholders and their spouse must unconditionally and freely perform all necessary assistance and support at the request of the WFOE or other person designated by the Proposed Listed Company to complete the legal procedures related to the signing of the transfer of equity interests.

 

17.           Meten Education Institution Shareholders covenant to the WFOE that they had made all reasonable arrangements and signed all necessary documents to ensure that when the Meten Education Institution Shareholders dissolve, liquidate, or are revoked, ordered to close, applied for compulsory dissolution or for other reasons that need to dissolve or liquidate or otherwise their abilities to exercise their (direct and / or indirect) equities of Meten Education were affected,, its successors, administrators, liquidation groups, etc. who shall thereby be potentially able to obtain their equities or related rights of Meten Education, may not affect or hinder the performance of the Cooperation Agreements.  Related arrangements include but are not limited to:

 

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a)                 Meten Education Institution Shareholders unanimously agree to, when Meten Education Institution Shareholders are revoked, ordered to close, applied for forced dissolution or for other reasons need to be dissolved, liquidated or in other similar situations, Meten Education, Meten Education Institution Shareholders, and the liquidation group of the Meten Education Institution Shareholders shall provide all necessary assistance and support, at the request of the WFOE or other persons designated by the Proposed Listed Company, unconditionally and without compensation, in order to complete the aforementioned legal procedures related to the transfer of equities in Meten Education, and shall voluntarily and irrevocably waive the exercise of statutory and / or agreed revocation rights, and shall not carry out other acts and / or inactions that may hinder the WFOE or the person designated by the Proposed Listed Company to acquire and exercise the equity;

 

b)                 Meten Education Institution Shareholders unanimously agree to, when the equity of Meten Education was applied for enforcement or otherwise Meten Education Institution Shareholders’ abilities to hold their (direct and / or indirect) equities of Meten Education were materially restricted or similarly disposed, Meten Education, Meten Education Institution Shareholders, and the liquidation group of the Meten Education Institution Shareholders shall provide all necessary assistance and support, at the request of the WFOE or other persons designated by the Proposed Listed Company, unconditionally and without compensation, in order to complete the aforementioned legal procedures related to the transfer of equities in Meten Education, and shall voluntarily and irrevocably waive the exercise of statutory and / or agreed revocation rights, and shall not carry out other acts and / or inactions that may hinder the WFOE or the person designated by the Proposed Listed Company to acquire and exercise the equity.

 

18.           Meten Education Shareholders assure to the WFOE that, unless prior written consent of the WFOE was obtained, Meten Education Shareholders (whether individually or collectively) will not directly or indirectly engage, participate in or conduct business competitive or potentially competitive with the business of the Domestic Affiliates and its subsidiaries and units, and will not acquire or hold business competitive or potentially competitive with the business of Domestic Affiliates and their subsidiaries and units, and will not use information obtained from Domestic Affiliates and their subsidiaries and units to engage in or directly or indirectly participate in businesses competitive or potentially competitive with the business of the Domestic Affiliates and their affiliates and units, and will not benefit from any business competitive or potentially competitive with the business of Domestic Affiliates and their affiliates.  However, the investment by the Meten Education Institution Shareholders as a financial investor in a business competitive or potentially competitive with the business of Domestic Affiliates and its subsidiaries and units is not subject to the foregoing Section 18 and this Section 19.

 

18

 

19.           Meten Education Shareholders confirm and agree, if Meten Education Shareholders (whether alone or collectively), directly or indirectly engage, participate in or conduct any business or activity that competes with or may compete with the business of the Domestic Affiliates and its subsidiaries and units, then WFOE and/or other entities designated by the Proposed Listed Company shall enjoy an option free of charge, requiring (i) a legal entity engaged in the competitive business to sign with the WFOE and/or other entities designated by the Proposed Listed Company in a timely manner full set of agreements arrangements similar to the Cooperation Agreements, the consideration must be negotiated and determined by the Parties based on the fair and reasonable principles and the valuation of third-party professional appraisers and the applicable laws and regulations (including the laws, regulations and relevant rules of securities regulation in the place of listing); or (ii) cease to engage in such competitive business.  The WFOE and/or the Proposed Listed Company has the right to decide whether to require a legal entity that is engaged in a competitive business to sign a full set of agreements similar to the Cooperation Agreements with the WFOE and/or other entities designated by the Proposed Listed Company within a reasonable time after obtaining written notice from the Meten Education Shareholders.  If the WFOE and/or other entities designated by the Proposed Listed Company choose to exercise rights under subsection (i), Meten Education Shareholders shall procure and ensure that the legal entity engaged in the competitive business signs a full set of agreement arrangements with the WFOE in a timely manner similar to the Cooperation Agreements; If the WFOE and/or other entities designated by the Proposed Listed Company choose to exercise rights under subsection (ii), then Meten Education Shareholders shall terminate such competitive business in an appropriate manner within a reasonable time to eliminate the inter-industry competition between Meten Education Shareholders, WFOE and the Proposed Listed Company.

 

20.           Meten Education Shareholders and Domestic Affiliates assure to the WFOE that they will not take any action or inaction that may be contrary to the purpose and intention of the Cooperation Agreements, which may lead to or may lead to the conflict of interest between WFOE and Meten Education Shareholders and Domestic Affiliates and their subsidiaries and units.  If the interest of Meten Education Shareholders, Domestic Affiliates and WFOE conflict in the implementation of the Cooperation Agreements, Meten Education Shareholders, Domestic Affiliates will safeguard the legitimate interests of WFOE in the Cooperation Agreements and obey the WFOE’ s instructions in accordance with the laws.

 

19

 

21.           Meten Education Shareholders confirm to the WFOE, after the full investment of all capital contributions by the Meten Education Shareholders to Meten Education, such capital contribution shall be the assets of Meten Education, Meten Education Shareholders shall not, under any circumstances, require Meten Education to repay the capital contribution and will not require for WFOE’ s compensation for the capital contribution.

 

22.           Meten Education Shareholders unanimously agree that their rights and obligations under the Cooperation Agreements are an integral part of the equity of Meten Education, unless otherwise directed by WFOE, the obtaining and/or exercise of the equity of Meten Education by any means (including but not limited to acquisition, property division, inheritance, guardianship, agency) by any person is considered as the recognition and acceptance of the corresponding rights and obligations under the Cooperation Agreements, as if such person has signed the Cooperation Agreements.  If such person brings up any disapproval, objections or other reservations to the corresponding rights and obligations under the Cooperation Agreements, then any such acts or inaction that conflict with the Cooperation Agreements are invalid and, WFOE reserves the legal right to recover the losses thereby caused to the WFOE.

 

23.           Meten Education agrees that its rights and obligations under the Cooperation Agreements are an integral part of the  equity and/or organizer right held by it in its Domestic Affiliates, unless otherwise directed by WFOE, the obtaining and/or exercise of such equity and/or organizer right by any means (including but not limited to acquisition, merger, division, bankruptcy management, dissolution, liquidation, property escrow, agency) by any person is deemed as the recognition and acceptance of the corresponding rights and obligations under the Cooperation Agreements, as if such person has signed the Cooperation Agreements.  If such person brings up any disapproval, objections or other reservations to the corresponding rights and obligations under the Cooperation Agreements, then any such acts or inaction that conflict with the Cooperation Agreements are invalid and, WFOE reserves the legal right to recover the losses thereby caused to the WFOE.

 

20

 

4. Financial Management and Payment of Fees

 

1.                  Service Fee

 

a)                 WFOE provides the Domestic Affiliates with exclusive technical services and exclusive management consulting services required for offline English training and tourism business, including but not limited to training centers/schools courses, professional design, preparation, selection and/or recommendation of textbooks, recruitment of teachers and other staff, training support, admissions support,, public relations maintenance, market research and development, management and marketing consulting, etc., in accordance with the provisions of this Agreement and the Exclusive Technical Services and Management Consulting Agreement. As a consideration, Domestic Affiliates shall pay technical services fees, management and consulting services fees to WFOE in accordance with relevant agreements. (The above fees are collectively referred to as “Service Fees”); and

 

b)                 For details of the accounting, confirmation and payment of Service Fees, please refer to the relevant provisions of “Section 5. Service Fees” of the Exclusive Technical Service and Management Consulting Agreement.

 

2.                  Financial Statements

 

The Domestic Affiliates shall adopt an accounting system established and implemented in accordance with sound business practices, and prepare financial statements of Domestic Affiliates and their subsidiaries and units that meet the requirements of WFOE and shall deliver them to WFOE within 3 business days from the date of completion of the preparation of these financial statements and other financial reports.

 

3.                  Audit

 

The Domestic Affiliates shall allow the WFOE, the Proposed Listed Company and/or its designated auditors, under reasonably notification, to audit the relevant accounting books and records of the Domestic Affiliates and their subsidiaries and units at the principal office of the Domestic Affiliates, and to copy the required parts of the accounting books and records to verify the income amount and the accuracy of the statements for any period. For this purpose, the Domestic Affiliates agree to provide relevant information and materials concerning the operations, business, customers, finances, employees, etc. of the Domestic Affiliates and their subsidiaries and units, and agree that the Proposed Listed Company shall disclose such information and materials in order to meet the requirements of securities  regulation of the place in which it intends to be listed.

 

21

 

5. Liability for Breach of Contract

 

1.                  Any Party that violates the provisions of this Agreement and other Cooperation Agreements and make all or part of this Agreement or other Cooperation Agreements unenforceable, shall be liable for breach of contract, and for continuous actual performance and shall compensate the other Parties for the losses caused thereby (including litigation fees and attorney fees caused thereby).

 

2.                  The Parties agree that, subject to the applicable laws, WFOE has the right to immediately claim to the court or arbitration institution that has jurisdiction over the breach of contract by the Meten Education Shareholders and Domestic Affiliates under the Cooperation Agreements for statutory relief or other remedies related to the equity or land or other assets held by the defaulting party. , including but not limited to the transfer of equity and/or organizer right of Domestic Affiliates and their subsidiaries and units or the compulsory transfer of assets by Meten Education Shareholders, Domestic Affiliates and their subsidiaries and units, or the order to dissolve or liquidate the Domestic Affiliates and their subsidiaries and units to compensate for the loss of WFOE.

 

3.                  With respect to any loss, damage, obligation and expense caused by any litigation, claim or other request against WFOE arising out of or arising from the service provided by WFOE as required by the Meten Education Shareholders and the Domestic Affiliates under this Agreement, the Meten Education Shareholders and the Domestic Affiliates shall severally but not jointly compensate WFOE and protect the WFOE from loss.

 

6. Governing Laws and Dispute Resolution

 

1.                  Change of Law

 

At any time after the date of this Agreement, with respect to the enactment or revision of any Chinese laws, regulations or rules, or due to changes in the interpretation or application of such laws, regulations or rules, the following provisions shall apply:

 

a)                 If the above changes or new rules are more favorable to any Party than the relevant laws, regulations, decrees or regulations in effect on the date of signing this Agreement (and the other Parties are not seriously adversely affected), under the coordination of the WFOE, the Parties shall timely modify the Cooperation Agreements to obtain the benefits arising from such changes or new regulations; or the Parties shall apply in time for the benefits of such changes or new regulations, and the Parties shall use their best efforts to obtain the approval of the application; or

 

22

 

b)                 If, due to the above changes or new regulations, the economic interests of either Party under this Agreement are directly or indirectly adversely affected, this Agreement shall continue to be executed in accordance with the original terms.  Each Party shall use all legal means to obtain an exemption from compliance with the change or regulations.  If the adverse effects on the economic interests of either Party cannot be resolved in accordance with the provisions of this Agreement, and the affected Party notifies the other Parties, the Parties shall promptly consult with the WFOE and make all necessary modifications to the Cooperation Agreements to maintain the economic interests of the affected Party under this Agreement.

 

2.                  The laws of PRC shall apply to the conclusion, validity, interpretation, performance, modification and termination of this Agreement and the resolution of disputes.

 

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

 

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

 

5.                  During the arbitration period, other than obligations related to the disputes submitted to the arbitration, the Parties to this Agreement shall continue to perform their other obligations under this Agreement.

 

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

 

23

 

7.                  A Party’s failure to exercise or delay of the exercise of any of its rights, powers and remedies (hereinafter referred to as “Rights of Such Party”) under this Agreement or the laws will not result in the waiver of the Rights of Such Party, and any single or partial waiver of the Rights of Such Party does not exclude the Party’s exercise of the Rights of Such Party in other ways and the exercise of other Rights of Such Party.

 

7. Confidentiality

 

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

 

a)                 The public is aware of or will be aware of such information (not due to the disclosure to the public by one of the recipients);

 

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

 

c)                  The information required to be disclosed by any Party to its legal or financial adviser for the transactions described in this Agreement and the legal or financial adviser is also subject to confidentiality obligations similar to those of this Section; or

 

2.                  The disclosure of the secrets of the staff of any Party or the institution a Party employs shall be deemed to be the disclosure by such Party, and the Party shall be liable for breach of contract in accordance with this Agreement.

 

3.                  The Parties agree that the confidentiality provisions of this Section 7 will continue to be valid irrespective of whether this Agreement is invalid, altered, discharged, terminated or not operational.

 

8. Severability

 

1.                  If any one or more of the provisions of this Agreement are held to be invalid, illegal or unenforceable in any way under any law or regulation, the validity, legality or enforceability of the other provisions of this Agreement shall not be thereby subject to any influence or damage.  All Parties shall, through good faith consultations, seek to replace those invalid, illegal or unenforceable provisions with valid provisions to the greatest extent expected by the Parties and within the permission of the law, and the economic effects such effective provisions produce shall be similar to those invalid, illegal or unenforceable regulations.

 

24

 

9. Term

 

1.                  This Agreement shall become effective on the date on which the Parties sign this Agreement, and shall automatically terminate when WFOE and/or other civil entities designated by the Proposed Listed Company have fully exercised their options to purchase all the (direct and indirect) equities held by Meten Education Shareholders in Domestic Affiliates in accordance with the Exclusive Call Option Agreement entered into on the date of this Agreement with the Domestic Affiliates and Meten Education Shareholders. WFOE may terminate this Agreement unilaterally after notice in thirty (30) days advance. Unless otherwise required by law, in any case, the Domestic Affiliates and Meten Education Shareholder have no right to terminate or discharge this Agreement unilaterally.

 

2.                  For the avoidance of doubt, according to the Exclusive Call Option Agreement, if the Chinese laws and regulations permit the WFOE and/or other foreign or overseas entities designated by the Proposed Listed Company to directly hold part or all of the shares and/or organizer rights of the Domestic Affiliates, and conduct restricted/prohibited business such as offline English training business and tourism business through the Domestic Affiliates, WFOE shall issue a notice of equity purchase within the fastest possible time, and the equity purchaser shall purchase the amount of (direct and indirect) equity from the Meten Education Shareholders not lower than the maximum amount of equity permitted to be held by the WFOE and/or other foreign or overseas entities designated by the Proposed Listed Company in the Domestic Affiliates under the laws of PRC at that time. This Agreement shall automatically terminate when the equity purchasers have fully exercised their options to purchase all the (direct and indirect) equities held by Meten Education Shareholders in Domestic Affiliates in accordance with the Exclusive Call Option Agreement.

 

10. Amendment

 

1.                  By agreement between the Parties to the Agreement and approval by the shareholders of the WFOE, the Parties to the Agreement may modify or supplement this Agreement and take all necessary steps and actions, and bear the corresponding expenses, so that any modification or supplement can be legally valid. .

 

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

 

25

 

11. Force Majeure

 

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

 

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

 

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

 

12. Change of Circumstances

 

1.                  If at any time, due to the enactment or revision of any Chinese laws, regulations or rules, or due to changes in the interpretation or application of such laws, regulations or rules, or due to changes in the registration procedures, which makes WFOE believe that the maintenance of this Agreement in effect and the performance of this Agreement becomes illegal or contrary to such laws, regulations or rules, Meten Education Shareholders and Domestic Affiliates shall immediately, following the written instructions of the WFOE and take any action and/or sign any agreement or other documents in accordance with the requirements of the WFOE. to:

 

(a)         keep this Agreement valid; and/or

 

(b)         fulfill the intent and purpose of this Agreement by ways prescribed under this Agreement or by other means.

 

26

 

13. Miscellaneous

 

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

 

2.                  The Parties agree that, to the extent permitted by Chinese laws, WFOE may transfer its rights and obligations under this Agreement to other third parties as it may require.  WFOE is only required to give written notice to the other Parties at the time of the transfer and no further consent is required from such other Parties.

 

3.                  The Parties agree that, without WFOE ‘s prior written consent, the Domestic Affiliates and Meten Education Shareholders shall not transfer their rights and obligations under this Agreement to any other party.

 

4.                  In any case, if any equities of Meten Education are transferred to any third party other than the Meten Education Shareholders, Meten Education Shareholders are obliged to make the relevant transferee accept the rights and obligations under the Cooperation Agreements in writing and be bound by these rights and obligations.

 

5.                  In any case, if the shareholder and/or organizer rights of the Domestic Affiliates are transferred to any third party other than the existing shareholders and/or organizers of the Domestic Affiliates, Meten Education Shareholders and the existing shareholder and/or organizers of Domestic Affiliates are obliged to make the relevant transferee accept the rights and obligations under the Cooperation Agreements in writing and be bound by these rights and obligations.

 

27

 

6.                  This Agreement is drafted in Chinese and in eighty-three (83) counterparts, each of which shall be held by each Party to this agreement and has the same legal effect.

 

(Signature Pages Follow)

 

28

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

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

 

 

(Signature Page of the Business Cooperation Agreement)

 

	
Meten Education (Shenzhen)   Co., Ltd. (seal)
    	
 
    	
Shenzhen Meten Qiancheng   International Education Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal representative/authorized   representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    
	
Shenzhen Yinglian Information   Consulting Co., Ltd. (seal)
    	
 
    	
Shenzhen Yingguo Information   Technology Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal representative/authorized   representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    
	
Lv Cheng Tian Xia International   Travel Service (Beijing) Co., Ltd. (seal)
    	
 
    	
Beijing Le Wen Xie Er Education   Consulting Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    
	
Beijing Meten Yingguo Education   Consulting Co., Ltd. (seal)
    	
 
    	
Beijing Meilianxing Education   Technology Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    

 

 

	
Beijing Meten Overseas   Technology Co., Ltd. (seal)
    	
 
    	
Chengdu Meten Education   Technology Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    
	
Chengdu Meten English Training   School Co., Ltd. (seal)
    	
 
    	
Meten Education (Dongguan)   Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal representative/authorized   representative:
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    
	
Dongguan Meten Education   Technology Co., Ltd. (seal)
    	
 
    	
Guangzhou Meten Education   Technology Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    

 

 

(Signature Page of the Business Cooperation Agreement)

 

	
Huizhou Meten Education   Technology Co., Ltd. (seal)
    	
 
    	
Nanjing Meten Foreign Language   Training Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ningbo Tangning Education   Information Consulting Co., Ltd. (seal)
    	
 
    	
Quanzhou Meten Education   Consulting Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shaoxing Yuecheng Meten English   Training School Co., Ltd. (seal)
    	
 
    	
Suzhou Meten Education   Consulting Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal representative/authorized   representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Wuxi Meten Foreign Language   Training Co., Ltd. (seal)
    	
 
    	
Wuhan Meilianxing Teaching   Technology Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal representative/authorized   representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    

 

 

	
Chongqing Nan’an District   Xinlian English Training Co., Ltd. (seal)
    	
 
    	
Changzhou Meten Education   Technology Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Beijing Jingchengying Education   Network Technology Co., Ltd. (seal)
    	
 
    	
Beijing Jingchengying Education   and Culture Development Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shenzhen Meten English Training   Center (seal)
    	
 
    	
Chengdu Wuhou District Meten   English Training School (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal representative/authorized   representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    

 

 

(Signature Page of the Business Cooperation Agreement)

 

	
Chengdu Qingyang District Meten   English Training School (seal)
    	
 
    	
Mianyang City Peicheng District   Meten English Training School (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dongguan Dongcheng Meten English   Training Center (seal)
    	
 
    	
Dongguan Nancheng Meten English   Training Center (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Meten English Training School,   Chancheng District, Foshan (seal)
    	
 
    	
Meten English Training Center,   Nanhai District, Foshan (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal representative/authorized   representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Meten Wanda English Training   Center, Nanhai District, Foshan (seal)
    	
 
    	
Daliang Meten English Training   Center, Shunde District, Foshan (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Meten English Training Center,   Tianhe District, Guangzhou (seal)
    	
 
    	
Meten English Training Center,   Pengjiang District, Jiangmen (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    

 

 

	
Nanchang Honggutan Meten   English Training School (seal)
    	
 
    	
Nanjing Qinhuai Meten English   Training School (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ningbo Zhiyue Foreign Language   School (seal)
    	
 
    	
Zhiyue Education Training   School, Yinzhou District, Ningbo (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal representative/authorized   representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    

 

 

(Signature Page of the Business Cooperation Agreement)

 

	
Meten English Training Center,   Huli District, Xiamen (seal)
    	
 
    	
Meten English Training Center,   Fengze District, Quanzhou (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shenyang Meten English Training   School (seal)
    	
 
    	
Meten English Training Center,   High-Tech Zone, Suzhou (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Suzhou Meten English Training Center   (seal)
    	
 
    	
Meten English Training   Center, Industrial Park Zone, Suzhou (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Meten English Training School,   Donghu New Technology Development Zone, Wuhan (seal)
    	
 
    	
Meten English Training School,   Jianghan District, Wuhan (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal representative/authorized   representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Meten English Training School,   Hanyang District, Wuhan (seal)
    	
 
    	
Xi’an Meten English Training   Center (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    

 

 

	
Meten English Training School,   Kaifu District, Changsha (seal)
    	
 
    	
Zhongshan Meten English   Training Center (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Meten English Training Center,   East District, Zhongshan (seal)
    	
 
    	
Chongqing Yuzhong Meten English   Training School (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    

 

 

(Signature Page of the Business Cooperation Agreement)

 

	
Meilian English Training   School, Jiulongpo District, Chongqing (seal)
    	
 
    	
Meten English Training School,   Jiangbei District, Chongqing (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Meten English Education   Training School, Shapingba District, Chongqing (seal)
    	
 
    	
ABC Foreign Language Training   School, Xicheng District, Beijing (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ABC Foreign Language Training   School, Fengtai District, Beijing (seal)
    	
 
    	
Harbin ABC Foreign Language   School (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ABC Foreign Language School,   Xiangfang District, Harbin (seal)
    	
 
    	
Harbin ABC Culture Training   School (seal)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of legal   representative/authorized representative:
    	
 
    	
 
    	
Signature of legal   representative/authorized representative:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
/s/ Jishuang Zhao
    	
 
    	
 
    	
/s/ Jishuang Zhao
    

 

 

(Signature Page of the Business Cooperation Agreement)

 

	
Changsha   Kaifu District Xinlian English Training Co., Ltd. (seal)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Signature of the   executing partner/authorized representative:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Yupeng Guo
    	
 
    

 

 

Annex I: Domestic Affiliates

 

1.                  Shenzhen Meten International Education Co., Ltd.

2.                  Meten Education (Shenzhen) Co., Ltd.

3.                  Shenzhen Meten Qiancheng International Education Co., Ltd.

4.                  Shenzhen Yinglian Information Consulting Co., Ltd.

5.                  Shenzhen Yingguo Information Technology Co., Ltd.

6.                  Lv Cheng Tian Xia International Travel Service (Beijing) Co., Ltd.

7.                  Beijing Le Wen Xie Er Education Consulting Co., Ltd.

8.                  Beijing Meten Yingguo Education Consulting Co., Ltd.

9.                  Beijing Meilianxing Education Technology Co., Ltd.

10.           Beijing Meten Overseas Technology Co., Ltd.

11.           Chengdu Meten Education Technology Co., Ltd.

12.           Chengdu Meten English Training School Co., Ltd.

13.           Dongguan Meten Education Technology Co., Ltd.

14.           Meten Education (Dongguan) Co., Ltd.

15.           Guangzhou Meten Education Technology Co., Ltd.

16.           Huizhou Meten Education Technology Co., Ltd.

17.           Ningbo Tangning Education Information Consulting Co., Ltd.

18.           Shaoxing Yuecheng Meten English Training School Co., Ltd.

19.           Wuxi Meten Foreign Language Training Co., Ltd.

20.           Chongqing Nan’an District Xinlian English Training Co., Ltd.

21.           Nanjing Meten Foreign Language Training Co., Ltd.

22.           Quanzhou Meten Education Consulting Co., Ltd.

23.           Suzhou Meten Education Consulting Co., Ltd.

24.           Wuhan Meilianxing Teaching Technology Co., Ltd.

25.           Changzhou Meten Education Technology Co., Ltd.

26.           Beijing Jingchengying Education Network Technology Co., Ltd.

27.           Shenzhen Meten English Training Center

28.           Beijing Jingchengying Education and Culture Development Co., Ltd.

29.           Chengdu Wuhou District Meten English Training School

30.           Chengdu Qingyang District Meten English Training School

31.           Dongguan Dongcheng Meten English Training Center

32.           Meten English Training School, Chancheng District, Foshan

33.           Meten Wanda English Training Center, Nanhai District, Foshan

34.           Meten English Training Center, Tianhe District, Guangzhou

35.           Nanchang Honggutan Meten English Training School

36.           Ningbo Zhiyue Foreign Language School

37.           Mianyang City Peicheng District Meten English Training School

38.           Dongguan Nancheng Meten English Training Center

39.           Meten English Training Center, Nanhai District, Foshan

40.           Daliang Meten English Training Center, Shunde District, Foshan

41.           Meten English Training Center, Pengjiang District, Jiangmen

 

 

42.           Nanjing Qinhuai Meten English Training School

43.           Zhiyue Education Training School, Yinzhou District, Ningbo

44.           Meten English Training Center, Huli District, Xiamen

45.           Shenyang Meten English Training School

46.           Suzhou Meten English Training Center

47.           Meten English Training School, Donghu New Technology Development Zone, Wuhan

48.           Meten English Training School, Hanyang District, Wuhan

49.           Meten English Training School, Kaifu District, Changsha

50.           Meten English Training Center, East District, Zhongshan

51.           Meten English Training Center, Fengze District, Quanzhou

52.           Meten English Training Center, High-Tech Zone, Suzhou

53.           Meten English Training Center, Industrial Park Zone, Suzhou

54.           Meten English Training School, Jianghan District, Wuhan

55.           Xi’an Meten English Training Center

56.           Zhongshan Meten English Training Center

57.           Chongqing Yuzhong Meten English Training School

58.           Meilian English Training School, Jiulongpo District, Chongqing

59.           Meten English Education Training School, Shapingba District, Chongqing

60.           ABC Foreign Language Training School, Fengtai District, Beijing

61.           ABC Foreign Language School, Xiangfang District, Harbin

62.           Meten English Training School, Jiangbei District, Chongqing

63.           ABC Foreign Language Training School, Xicheng District, Beijing

64.           Harbin ABC Foreign Language School

65.           Harbin ABC Culture Training School

66.           Changsha Kaifu District Xinlian English Training Co., Ltd.

 

 

Annex II: Meten Education Shareholders

 

1.                  Jishuang Zhao

2.                  Siguang Peng

3.                  Yupeng Guo

4.                  Yun Feng

5.                  Jun Yao

6.                  Tong Zeng

7.                  Yongchao Chen

8.                  Xinyu Meilianzhong Investment Management Center (Limited Partnership)

9.                  Xinyu Meilianxing Investment Management Center (Limited Partnership)

10.           Xinyu Meilianchou Investment Management Center (Limited Partnership)

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

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

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

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

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

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

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

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