Document:

jp-ex428_451.htm

Exhibit4_28

 

 

 Exclusive Business Cooperation Agreement

 

This Exclusive Business Cooperation Agreement (this “Agreement”) is made and entered into by and between the following parties on August 24, 2021, in Shanghai, the People’s Republic of China (“China” or the “PRC”). 

 

Party A: Baoyi Investment Consulting (Shanghai) Co., Ltd. 

Address: Room 104, Block 94, 149 Yan Chang Road, Jing’an District, Shanghai               

 

Party B: Shanghai Yedu Enterprise Management Co., Ltd.    

Address: Block 2, 3, 4, 5, 6, 7, 112-118 Gaoyi Road, Baoshan District, Shanghai

 

Each of Party A and Party B shall be hereinafter referred to as a “Party” respectively, and as the “Parties” collectively. 

 

Whereas, 

 

1. Party A is a wholly-foreign-owned enterprise established in China, and has the necessary resources to provide technical and consulting services;  

 

2. Party B is a company with exclusively domestic capital registered in China and may engage in business management, information technology consulting services, financial consulting (excluding bookkeeping) and tax services (except for items subject to approval in accordance with the law, carry out business activities independently with the business license in accordance with the law) (collectively, the “Principal Business”); 

 

3. Party A is willing to provide Party B with technical support, consulting services and management services on exclusive basis in relation to the Principal Business during the term of this Agreement, utilizing its advantages in technology, human resources, and information, and Party B is willing to accept such services provided by Party A or Party A's designee(s), each on the terms set forth herein.  

 

Now, therefore, through mutual discussion, the Parties have reached the following agreements: 

 

1. Services Provided by Party A 

 

1.1 Party B hereby appoints Party A as Party B's exclusive services provider to provide Party B with complete technical support, business support and related consulting services during the term of this Agreement, in accordance with the terms and conditions of this Agreement, which may include all necessary services within the scope of the Principal Business as may be determined from time to time by Party A, such as but not limited to Provides information technology consulting services, management software development, sales computer hardware and software research, development and sales.  

 

1.2 Party B agrees to accept all the consultations and services provided by Party A. Party B further agrees that unless with Party A's prior written consent, during the term of this Agreement, Party B shall not directly or indirectly accept the same or any similar consultations and/or services provided by any third party and shall not establish similar corporation relationship with any third party regarding the matters contemplated by this Agreement. Party A may appoint other parties, who may enter into certain agreements described in Section 1.3 with Party B, to provide Party B with the consultations and/or services under this Agreement.  

  

1.3 Service Providing Methodology 

 

1.3.1 Party A and Party B agree that during the term of this Agreement, where necessary, Party B may enter into further technical service agreements or consulting service agreements with Party A or any other party designated by Party A, which shall provide the specific contents, manner, personnel, and fees for the specific technical services and consulting services.  

 

1.3.2 Party B hereby grants to Party A an irrevocable and exclusive option to purchase from Party B, at Party A’s 

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sole discretion, any or all of the assets of Party B, to the extent permitted under the PRC laws, at the lowest purchase price permitted by the PRC laws. In this case, the Parties shall enter into a separate assets transfer agreement, specifying the terms and conditions of the transfer of the assets. 

 

2. The Calculation and Payment of the Service Fees 

 

2.1 The Parties agree that in respect to the services provided by Party A to Party B contemplated in this Agreement, Party B shall pay Party A the service fees (the “Service Fees”). During the term of this Agreement, the Service Fees to be paid to Party A by Party B shall be calculated quarterly based on the following formula: the time of services rendered to Party B by the employees of Party A multiplies the corresponding rate, plus amount of the services fees or ratio decided by the board of directors of Party A based on the value of services rendered by Party A and the actual income of Party B from time to time.  In the event the board of directors of Party A does not adjust the aforesaid amount of service fees or ratio, the Service Fees shall be exercised in accordance with the amount of ratio decided by the latest board of directors of Party A. In any event, the service fees shall be substantially equal to all of the net income of Party B, subject to any requirement by PRC law and Article of Association. The following elements shall be taken into consideration in adjusting or deciding the Service Fees: 

 

2.1.1 The complexity and difficulty of the services; 

 

2.1.2 The required time of such services rendered by the employees of Party A; 

 

2.1.3 The exact content and commercial value of the services; 

 

2.1.4 The market price of the services of the same kind. 

 

2.2 As unanimously agreed upon by the Parties, the exact calculation and payment methods of the Service Fees may be amended by entering into a separate written agreement.  

 

2.3 Unless otherwise unanimously agreed upon by the Parties, the Service Fees to be paid by Party B to Party A pursuant to this Agreement shall not include any deduction or offset. 

 

3. Confidentiality Clauses 

 

3.1 The Parties acknowledge that the existence and the terms of this Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance this Agreement are regarded as confidential information. Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders, investors, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, investors, legal counsels or financial advisors shall  be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the staff members or agencies hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Agreement. This Section shall survive the termination of this Agreement for any reason. 

 

3.2 The Parties agree that this Section shall survive changes to, and rescission or termination of, this Agreement. 

 

4. Representations and Warranties 

 

4.1 Party A hereby represents and warrants as follows: 

 

4.1.1 Party A is a wholly owned foreign enterprise legally registered and validly existing in accordance with the laws of China. 

 

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4.1.2 Party A has taken all necessary corporate actions, obtained all necessary authorization and the consent and approval from third parties and government agencies (if any) for the execution, delivery and performance of this Agreement.  Party A’s execution, delivery and performance of this Agreement do not violate any explicit requirements under any law or regulation binding on Party A. 

 

4.1.3 This Agreement constitutes Party A's legal, valid and binding obligations, enforceable in accordance with its terms. 

 

4.2 Party B hereby represents and warrants as follows: 

 

4.2.1 Party B is a company legally registered and validly existing in accordance with the laws of China and has obtained the relevant permit and license for engaging in the Principal Business in a timely manner; 

 

4.2.2 Party B has taken all necessary corporate actions, obtained all necessary authorization and the consent and approval from third parties and government agencies (if any) for the execution, delivery and performance of this Agreement.  Party B’s execution, delivery and performance of this Agreement do not violate any explicit requirements under any law or regulation binding on Party A. 

 

4.2.3 This Agreement constitutes Party B's legal, valid and binding obligations, and shall be enforceable against it. 

 

5. Effectiveness and Term 

 

5.1 This Agreement is executed on the date first above written and shall take effect as of such date. Unless earlier terminated in accordance with the provisions of this Agreement or relevant agreements separately executed between the Parties, the term of this Agreement shall be 20 years.  

 

5.2 The term of this Agreement may be extended if confirmed in writing by Party A prior to the expiration thereof. The extended term shall be determined by Party A, and Party B shall accept such extended term unconditionally. 

 

6. Termination 

 

6.1 Unless renewed in accordance with the relevant terms of this Agreement, this Agreement shall be terminated upon the date of expiration hereof. 

 

6.2 During the term of this Agreement, Party B shall not terminate this Agreement prior to its expiration date. Nevertheless, Party A shall have the right to terminate this Agreement upon giving 30 days' prior written notice to Party B at any time. 

 

6.3 The rights and obligations of the Parties under Articles 3, 7 and 8 shall survive the termination of this Agreement. 

 

7. Governing Law and Resolution of Disputes 

 

7.1 The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the laws of China. 

 

7.2 In the event of any dispute with respect to the construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement on the dispute within 30 days after either Party's request to the other Parties for resolution of the dispute through negotiations, either Party may submit the relevant dispute to the Shanghai Branch of the China International Economic and Trade Arbitration Commission for arbitration, in accordance with its Arbitration Rules. The arbitration shall be conducted in Shanghai, and the language used in arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties. 

 

7.3 Upon the occurrence of any disputes arising from the construction and performance of this Agreement or 

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during the pending arbitration of any dispute, except for the matters under dispute, the Parties to this Agreement shall continue to exercise their respective rights under this Agreement and perform their respective obligations under this Agreement.  

 

8. Indemnification

8.1 Party B shall indemnify and hold harmless Party A from any losses, injuries, obligations or expenses caused by any lawsuit, claims or other demands against Party A arising from or caused by the consultations and services provided by Party A to Party B pursuant this Agreement, except where such losses, injuries, obligations or expenses arise from the gross negligence or willful misconduct of Party A.  

 

9. NOTICES

 

9.1 All notices and other communications required or issued under this agreement shall be delivered to the party below by means of personal delivery, registered mail, postage prepaid or commercial courier service or fax. Each notice should also be delivered by e-mail. The date on which such notices are deemed to have been effectively served is determined as follows:

 

9.1.1 If the notice is delivered by personal delivery, courier service or registered mail, or prepaid postage, the effective delivery date shall be the date of receipt or rejection at the address set as the notice.

 

9.1.2 If the notification is sent by fax, the date of successful transmission shall be the effective date of delivery (it shall be evidenced by the automatically generated transmission confirmation message).

 

9.2 For the purpose of notification, the addresses of both parties are as follows:

 

Party A: Baoyi Investment Consulting (Shanghai) Co., Ltd. 

Address: Room 104, Block 94, 149 Yan Chang Road, Shanghai  

Attention: Xuebin ZHUANG

Tel.:

Fax:  

            

Party B: Shanghai Yedu Enterprise Management Co., Ltd.   

Address: Block 2、3、4、5、6、7, 112-118 Gaoyi Road, Baoshan district, Shanghai

Attention: Qimin WU

Tel.:

Fax:  

 

9.3 Either party may send a notice to the other party at any time in accordance with the provisions of this Article to change the address at which it receives notices.

 

10. Assignment 

 

10.1 Without Party A's prior written consent, Party B shall not assign its rights and obligations under this Agreement to any third party. 

 

10.2 Party B agrees that Party A may assign its obligations and rights under this Agreement to any third party upon a prior written notice to Party B but without the consent of Party B. 

 

11. Severability 

 

In the event that one or several of the provisions of this Agreement are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or compromised in any aspect. The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or 

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unenforceable provisions. 

 

12. Amendments and Supplements 

 

Any amendments and supplements to this Agreement shall be in writing. The amendment agreements and supplementary agreements that have been signed by the Parties and that relate to this Agreement shall be an integral part of this Agreement and shall have the same legal validity as this Agreement. 

 

13. Language and Counterparts 

 

This Agreement is written in Chinese language in two copies, each Party having one copy with equal legal validity. 

 

 (The remainder is intentionally left blank.) 

 

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(Signature page of Exclusive Business Cooperation Agreement)

 

Party A:  Baoyi Investment Consulting (Shanghai) Co., Ltd.

	
Seal:
	
/s/ Seal of Baoyi Investment Consulting (Shanghai) Co., Ltd.
	
 

	
Legal representative
	
 
	
 

	
(Signature):
	
/s/ Xuebin ZHUANG
	
 

	
Date:
	
 
	
 

 

Party B:  Shanghai Yedu Enterprise Management Co., Ltd.

	
Seal:
	
/s/ Seal of Shanghai Yedu Enterprise Management Co., Ltd.
	
 

	
Legal representative
	
 
	
 

	
(Signature):
	
/s/ Qimin WU
	
 

	
Date:
	
 
	
 

 

6/6jp-ex429_450.htm

Exhibit4.29

 

 

 Exclusive Call Option Agreement

 

This Exclusive Call Option Agreement (this “Agreement”) is entered into as of August 24, 2021, by and among:

 

	
1.
	
Qimin WU
Identity Card No.: ***

 

	
2.
	
Guowen ZHANG
Identity Card No.: ***

 

(Qimin WU and Guowen ZHANG are hereinafter referred to individually as an “Existing Shareholder” and collectively as the “Existing Shareholders”.)

 

	
3.
	
Baoyi Investment Consulting (Shanghai) Co., Ltd. (the “WFOE”)
Registered address: Room 104, Block 94, 149 Yan Chang Road, Shanghai

 

	
4.
	
Shanghai Yedu Enterprise Management Co., Ltd. (the “Company”)
Registered address: Block 2, 3, 4, 5, 6, 7, 112-118 Gaoyi Road, Baoshan district, Shanghai

 

(In this Agreement, all the above parties are hereafter referred to individually as a “Party” and collectively as the “Parties”.)

 

WHEREAS

 

	
1.
	
The Existing Shareholders are the registered shareholders of the Company, legally holding all the equity interest in the Company. Appendix 1 sets forth the capital contribution amount and the shareholding percentage of each Existing Shareholder in the registered capital of the Company as of the date when this Agreement is signed.

 

	
2.
	
To the extent not in violation of the PRC Law, the Existing Shareholders intend to transfer all their respective equity interest in the Company to the WFOE and/or any other entity or individual designated by the WFOE, and the WFOE intends to accept such transfer.

 

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

 

	
4.
	
For the purpose of the foregoing equity interest and asset transfer, the Existing Shareholders and the Company agree to grant to the WFOE the exclusive and irrevocable Equity Transfer Option (as defined below) and Asset Purchase Option (as defined below) respectively. Pursuant to such Equity Transfer Option and Asset Purchase Option, at the WFOE’s request, the Existing Shareholders or 

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the Company shall, to the extent permitted by the PRC Law, transfer the Option Equity (as defined below) or the Company Assets (as defined below) to the WFOE and/or any other entity or individual designated by the WFOE pursuant to the provisions of this Agreement.

 

	
5.
	
The Company agrees that the Existing Shareholders grant the Equity Transfer Option to the WFOE pursuant to the provisions of this Agreement.

 

	
6.
	
The Existing Shareholders agree that the Company grants the Asset Purchase Option to the WFOE pursuant to the provisions of this Agreement.

 

NOW, THEREFORE, the Parties, after consultations, hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

	
1.1
	
As used in this Agreement, the following terms shall be interpreted to have the following meanings, unless otherwise interpreted pursuant to the context:

 

“Equity Transfer Option” shall mean the option to purchase the equity interest in the Company as granted to the WFOE by the Existing Shareholders pursuant to the terms and conditions of this Agreement.

 

“Asset Purchase Option” shall mean the option to purchase any Company Assets as granted to the WFOE by the Company pursuant to the terms and conditions of this Agreement.

 

“Option Equity” shall mean, in respect of each of the Existing Shareholders, all the equity interest held by him in the Company Registered Capital respectively; in respect of both Existing Shareholders, the equity interest covering 100% of the Company Registered Capital.

 

“Company Registered Capital” shall mean the registered capital of the Company as of the signing date of this Agreement, i.e. RMB5,000,000, which shall include any expanded registered capital as a result of any capital increase in any form within the term of this Agreement.

 

“Transferred Equity” shall mean the equity interest in the Company which the WFOE has the right to request either of the Existing Shareholders to transfer to it or its designated entity or individual in accordance with Article 3 hereof when the WFOE exercises its Equity Transfer Option, the quantity of which may be all or part of the Option Equity and the specific amount of which shall be determined by the WFOE at its sole discretion in accordance with the then-effective PRC Law and based on its own commercial consideration.

 

“Transferred Assets” shall mean the Company Assets which the WFOE has the right to require the Company to transfer to it or its designated entity or individual in accordance with Article 3 hereof when the WFOE exercises its Asset Purchase Option, the quantity of which may be all or part of the 

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Company Assets and the details of which shall be determined by the WFOE at its sole discretion in accordance with the then-effective PRC Law and based on its commercial consideration.

 

“Exercise of Option” shall mean the exercising of the Equity Transfer Option or the Asset Purchase Option by the WFOE.

 

“Transfer Price” shall mean all the consideration that the WFOE or its designated entity or individual is required to pay to the Existing Shareholders or the Company in order to obtain the Transferred Equity or the Transferred Assets upon each Exercise of Option.

 

“Business Permits” shall mean any approvals, permits, filings, registrations, etc. which the Company is required to have for legally and validly operating all its businesses, including without limitation, Business License of Corporate Legal Person, Operation Permit of Value-added Telecommunication Service and such other relevant permits and licenses as required by the then-effective PRC Law.

 

“Company Assets” shall mean all the tangible and intangible assets which the Company owns or has the right to dispose of during the valid term of this Agreement, including without limitation, any immoveable and moveable assets, intellectual property rights such as trademarks, copyrights, patents, know-how, domain names and software use rights, and any investment interest.

 

“Material Asset” shall mean any asset which has a book value of RMB100,000 or more or has a material effect on the business operations of any Party.

 

“Material Agreement” shall mean, in respect of the Company, any agreement to which the Company is a party and which has a material effect on the business or assets of the Company; in respect of a Subsidiary, any agreement to which such Subsidiary is a party and which has a material effect on the business or assets of such Subsidiary.

 

“PRC” shall mean the People’s Republic of China, which, for purpose of this Agreement only, excludes Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan.

 

“PRC Law” shall mean the then-effective laws, administrative regulations, administrative rules, local regulations, judicial interpretations and other binding regulatory documents of the PRC.

 

“Exercise Notice” shall have the meaning prescribed to such term in Article 3.7 hereof.

 

“Subsidiary” shall have the meaning prescribed to such term in Article 6.1.10 hereof.

 

 “Confidential Information” shall have the meaning prescribed to such term in Article 8.1 hereof.

 

“Disclosing Party” shall have the meaning prescribed to such term in Article 8.1 hereof.

 

“Receiving Party” shall have the meaning prescribed to such term in Article 8.1 hereof.

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“Defaulting Party” shall have the meaning prescribed to such term in Article 11.1 hereof.

 

“Default” shall have the meaning prescribed to such term in Article 11.1 hereof.

 

“Available Rights” shall have the meaning prescribed to such term in Article 12.5 hereof.

 

	
1.2
	
The references to any PRC Law herein shall be deemed:

 

	
 
	
(1)
	
to simultaneously include the references to the amendments, changes, supplements and restatement of such PRC Law, irrespective of whether they take effect before or after the execution of this Agreement; and

 

	
 
	
(2)
	
to simultaneously include the references to other decisions, notices and regulations enacted in accordance therewith or effective as a result thereof.

 

	
1.3
	
Except as otherwise stated in the context herein, all references to an Article, clause, item or paragraph shall refer to the corresponding part of this Agreement.

 

ARTICLE II

 

GRANT OF EQUITY TRANSFER OPTION AND ASSET PURCHASE OPTION

 

	
2.1
	
The Existing Shareholders hereby severally and jointly agree to grant the WFOE an irrevocable, unconditional and exclusive Equity Transfer Option. Pursuant to such Equity Transfer Option, the WFOE is entitled to, to the extent permitted by the PRC Law, request the Existing Shareholders to transfer the Option Equity to the WFOE or its designated entity or individual according to the terms and conditions hereunder. The WFOE also agrees to accept such Equity Transfer Option.

 

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

 

	
2.3
	
The Company hereby agrees to grant the WFOE an irrevocable, unconditional and exclusive Asset Purchase Option. Pursuant to such Asset Purchase Option, the WFOE is entitled to, to the extent permitted by the PRC Law, request the Company to transfer all or part of the Company Assets to the WFOE or its designated entity or individual according to the terms and conditions hereunder. The WFOE also agrees to accept such Asset Purchase Option.

 

	
2.4
	
The Existing Shareholders hereby severally and jointly agree that the Company grants such Asset Purchase Option to the WFOE according to Article 2.3 above and other provisions of this Agreement.

 

ARTICLE III

 

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METHOD OF EXERCISE OF OPTION

 

	
3.1
	
Subject to the terms and conditions of this Agreement, the WFOE shall have the absolute sole discretion to determine the specific time, method and times of its Exercise of Option to the extent permitted by the PRC Law.

 

	
3.2
	
Subject to the terms and conditions of this Agreement and to the extent not in violation of the then-effective PRC Law, the WFOE shall have the right to, at any time, request to acquire the Transferred Equity from the Existing Shareholders by itself or through any other entity or individual designated by it.

 

	
3.3
	
Subject to the terms and conditions of this Agreement and to the extent not in violation of the then-effective PRC Law, the WFOE shall have the right to, at any time, request to acquire the Transferred Assets from the Company by itself or through any other entity or individual designated by it.

 

	
3.4
	
With regard to the Equity Transfer Option, at each Exercise of Option, the WFOE shall have the right to arbitrarily determine the amount of the Transferred Equity to be transferred by the Existing Shareholders to the WFOE and/or any other entity or individual designated by it. The Existing Shareholders shall respectively transfer the Transferred Equity to the WFOE and/or any other entity or individual designated by it in the amount requested by the WFOE. The WFOE and/or any other entity or individual designated by it shall pay the Transfer Price with respect to the Transferred Equity acquired at each Exercise of Option to the Existing Shareholder transferring such Transferred Equity.

 

	
3.5
	
With regard to the Asset Purchase Option, at each Exercise of Option, the WFOE shall have the right to determine the specific Company Assets to be transferred by the Company to the WFOE and/or any other entity or individual designated by it. The Company shall transfer the Transferred Assets to the WFOE and/or any other entity or individual designated by it in accordance with the WFOE’s requirement. The WFOE and/or any other entity or individual designated by it shall pay the Transfer Price to the Company with respect to the Transferred Assets acquired at each Exercise of Option.

 

	
3.6
	
At each Exercise of Option, the WFOE may acquire the Transferred Equity or Transferred Assets by itself or designate any third party to acquire all or part of the Transferred Equity or Transferred Assets.

 

	
3.7
	
Having decided each Exercise of Option, the WFOE shall issue to the Existing Shareholders or the Company a notice for exercising the Equity Transfer Option or a notice for exercising the Asset Purchase Option (the “Exercise Notice”, the form of which are set out in Annex 2 and Annex 3 hereto). The Existing Shareholders or the Company shall, upon receipt of the Exercise Notice, forthwith transfer all the Transferred Equity or Transferred Assets in one go in accordance with the Exercise Notice to the WFOE and/or any other entity or individual designated by the WFOE in such method as described in Article 3.4 or Article 3.5 hereof.

 

ARTICLE IV

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TRANSFER PRICE

 

	
4.1
	
With regard to the Equity Transfer Option, the total Transfer Price to be paid by the WFOE or any other entity or individual designated by the WFOE to each Existing Shareholder at each Exercise of Option by the WFOE shall be the actual investment mirrored by the corresponding Transferred Equity in the Company Registered Capital. But if the lowest price permitted by the then-effective PRC Law is higher than the above actual investment, the Transfer Price shall be the lowest price permitted by the PRC Law.

 

	
4.2
	
With regard to the Asset Purchase Option, the Transfer Price to be paid by the WFOE or any other entity or individual designated by the WFOE to the Company at each Exercise of Option by the WFOE shall be the net book value of the relevant Transferred Assets. But if the lowest price permitted by the then-effective PRC Law is higher than the net book value of the Transferred Assets, the Transfer Price shall be the lowest price permitted by the PRC Law.

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES

 

	
5.1
	
The Existing Shareholders hereby severally and jointly represent and warrant that:

 

	
 
	
5.1.1
	
each of the Existing Shareholders is a Chinese citizen with full capacity. Each of them has the full and independent legal status and legal capacity to execute, deliver and perform this Agreement and may act independently as a party to lawsuit.

 

	
 
	
5.1.2
	
the Company is a limited liability company duly registered and legitimately existing under the PRC Law with an independent legal personality. It has the full and independent legal status and legal capacity to execute, deliver and perform this Agreement and may act independently as a party to lawsuit.

 

	
 
	
5.1.3
	
each of them has the full power and authority to execute, deliver and perform this Agreement and all other documents relating to the transaction contemplated hereby and to be executed by him. Each of them has the full power and authority to consummate the transaction contemplated hereby.

 

	
 
	
5.1.4
	
this Agreement is legally and duly executed and delivered by the Existing Shareholders. This Agreement shall constitute their legal and binding obligations and shall be enforceable against them in accordance with the terms of this Agreement.

 

	
 
	
5.1.5
	
the Existing Shareholders are the legitimate owners of the Option Equity as of the effective date of this Agreement, and except for the rights created under the Equity Pledge Agreement and Shareholder Voting Rights Proxy Agreement executed by the Company, the WFOE and the Existing Shareholders on the date hereof, the Option Equity is free from 

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and clear of any lien, pledge, claim and other encumbrances and third party rights. Pursuant to this Agreement, the WFOE and/or any other entity or individual designated by it may, after the Exercise of Option, acquire a good title to the Transferred Equity, free from and clear of any lien, pledge, claim and other encumbrances or third party rights.

 

	
 
	
5.1.6
	
to the knowledge of the Existing Shareholders, the Company Assets are free from and clear of any lien, mortgage, claim and other encumbrances and third party rights. Pursuant to this Agreement, the WFOE and/or any other entity or individual designated by it may, after the Exercise of Option, acquire a good title to the Company Assets, free from and clear of any lien, mortgage, claim and other encumbrances or third party rights.

 

	
 
	
5.1.7
	
the execution, delivery and performance by the Existing Shareholders of this Agreement and the consummation by the Existing Shareholders of the transaction contemplated hereby do not violate any PRC Law or any agreement, contract or other arrangement with any third party by which they are bound.

 

	
5.2
	
The Company hereby represents and warrants that:

 

	
 
	
5.2.1
	
the Company is a limited liability company duly registered and legitimately existing under the PRC Law with an independent legal personality. It has the full and independent legal status and legal capacity to execute, deliver and perform this Agreement and may act independently as a party to lawsuit.

 

	
 
	
5.2.2
	
the Company has the full internal corporate power and authority to execute, deliver and perform this Agreement and all other documents relating to the transaction contemplated hereby and to be executed by it. It has the full power and authority to consummate the transaction contemplated hereby.

 

	
 
	
5.2.3
	
this Agreement is legally and duly executed and delivered by the Company, and shall constitute its legal and binding obligation.

 

	
 
	
5.2.4
	
the Company Assets are free from and clear of any lien, mortgage, claim and other encumbrances and third party rights. Pursuant to this Agreement, the WFOE and/or any other entity or individual designated by it may, after the Exercise of Option, acquire a good title to the Company Assets, free from and clear of any lien, mortgage, claim and other encumbrances or third party rights.

 

	
 
	
5.2.5
	
the execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transaction contemplated hereby do not violate any PRC Law or any agreement, contract or other arrangement with any third party by which it is bound.

 

	
5.3
	
The WFOE hereby represents and warrants that:

 

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5.3.1
	
the WFOE is a wholly foreign-owned enterprise duly registered and legitimately existing under the PRC Law with an independent legal personality. The WFOE has the full and independent legal status and legal capacity to execute, deliver and perform this Agreement and may act independently as a party to lawsuit.

 

	
 
	
5.3.2
	
the WFOE has the full internal corporate power and authority to execute, deliver and perform this Agreement and all other documents relating to the transaction contemplated hereby and to be executed by it. It has the full power and authority to consummate the transaction contemplated hereby.

 

	
 
	
5.3.3
	
this Agreement is legally and duly executed and delivered by the WFOE and shall constitute its legal and binding obligation.

 

ARTICLE VI

 

UNDERTAKINGS BY THE EXISTING SHAREHOLDERS

 

Each of the Existing Shareholders hereby severally undertakes that:

 

	
6.1
	
Within the valid term of this Agreement, without the WFOE’s prior written consent:

 

	
 
	
6.1.1
	
None of the Existing Shareholder shall transfer or otherwise dispose of any Option Equity or create any encumbrance or other third party rights on any Option Equity;

 

	
 
	
6.1.2
	
he shall not increase or decrease the Company Registered Capital or cause or permit the Company to be divided or merged with any other entity;

 

	
 
	
6.1.3
	
he shall not dispose of or cause the management of the Company to dispose of any Material Asset (other than in the ordinary course of business), or create any encumbrance or other third party rights on any Material Asset;

 

	
 
	
6.1.4
	
he shall not terminate or cause the management of the Company to terminate any Material Agreement entered into by the Company, or enter into any other agreement in conflict with the existing Material Agreements;

 

	
 
	
6.1.5
	
he shall not appoint, dismiss or replace any director or supervisor of the Company or any other management personnel of the Company who shall be appointed or dismissed by the Existing Shareholders;

 

	
 
	
6.1.6
	
he shall not cause the Company to declare the distribution of or in practice release any distributable profit, dividend, share profit or share interest;

 

	
 
	
6.1.7
	
he shall ensure that the Company validly exists and is not terminated, liquidated or dissolved;

 8 / 18

 

 

	
 
		

 

	
 
	
6.1.8
	
he shall not amend the articles of association of the Company;

 

	
 
	
6.1.9
	
he shall ensure that the Company will not lend or borrow any money, or provide any guaranty or other form of security, or bear any substantial obligations other than in the ordinary course of business; and

 

	
 
	
6.1.10
	
it shall not cause the Company or the management of the Company to approve any of the following acts of any of the Company’s subsidiaries or affiliates (collectively, the “Subsidiaries”):

 

	
 
	
(a)
	
increase or decrease any Subsidiary’s registered capital or cause or permit any Subsidiary to be divided or merged with any other entity;

 

	
 
	
(b)
	
dispose of or cause the management of the Subsidiaries to dispose of any Material Asset of any Subsidiary (other than in the ordinary course of business), or create any encumbrance or other third party rights on such assets;

 

	
 
	
(c)
	
terminate or cause the management of the Subsidiaries to terminate any Material Agreement entered into by any Subsidiary, or enter into any other agreement in conflict with the existing Material Agreements;

 

	
 
	
(c)
	
appoint, dismiss, or replace any director or supervisor of any Subsidiary or any other management personnel of such Subsidiary who shall be appointed or dismissed by the Company;

 

	
 
	
(d)
	
terminate, liquidate or dissolve any Subsidiary or act in any way that damages or is likely to damage the valid existence of any Subsidiary;

 

	
 
	
(f)
	
amend the articles of association of any Subsidiary; and

	
 
	
(g)
	
lend or borrow any money, or provide any guaranty or other form of security, or bear any substantial obligations other than in the ordinary course of business.

 

	
6.2
	
Within the valid term of this Agreement, he shall use his best endeavor to develop the business of the Company and ensure that the Company’s operations are legal and in compliance with the regulations, and he will not engage in any act or omission which may damage the Company’s (including the Subsidiaries’) assets and goodwill or affect the validity of the Business Permits of the Company.

 

	
6.3
	
Within the valid term of this Agreement, he shall timely notify the WFOE of any circumstances that may have a material adverse effect on the existence, business operations, financial conditions, assets or goodwill of the Company (including the Subsidiaries) and timely take all the measures approved by the WFOE to remove such adverse circumstances or take effective remedial measures with respect thereto.

 9 / 18

 

 

		

 

	
6.4
	
Once the WFOE gives the Exercise Notice,

 

	
 
	
6.4.1
	
he shall promptly convene a shareholders’ meeting, pass shareholders’ resolutions and take all other necessary actions to approve any Existing Shareholder or the Company to transfer all the Transferred Equity or the Transferred Assets at the Transfer Price to the WFOE and/or any other entity or individual designated by the WFOE, and waive any preemptive right to purchase enjoyed by him (if any);

 

	
 
	
6.4.2
	
he shall promptly enter into an equity transfer agreement with the WFOE and/or any other entity or individual designated by the WFOE to transfer all the Transferred Equity at the Transfer Price to the WFOE and/or any other entity or individual designated by the WFOE and provide necessary support to the WFOE (including provision and execution of all relevant legal documents, performing all government approval and registration procedures and assuming all relevant obligations) in accordance with the WFOE’s requirements and the PRC Law so that the WFOE and/or any other entity or individual designated by the WFOE may acquire all the Transferred Equity, free from and clear of any legal defect or any encumbrance, third party restriction or any other restrictions on the Transferred Equity.

 

	
6.5
	
If the total Transfer Price obtained by any Existing Shareholder with respect to the Transferred Equity held by him is higher than the actual investment corresponded with such Transferred Equity in the Company Registered Capital, or he receives any form of profit distribution, share profit, share interest or dividend from the Company, then such Existing Shareholder agrees to, to the extent not in violation of the PRC Law, waive the premium earnings and any profit distribution, share profit, share interest or dividend (after the deduction of relevant taxes) and the WFOE is entitled thereto. Otherwise, such Existing Shareholder shall compensate the WFOE and/or any other entity or individual designated by the WFOE for any loss incurred as a result thereof.

 

ARTICLE VII

 

UNDERTAKINGS BY THE COMPANY

 

	
7.1
	
The Company hereby undertakes that:

 

	
 
	
7.1.1
	
if any consent, permit, waiver or authorization by any third party, or any approval, permit or exemption by any government authority, or any registration or filing formalities (if required by law) with any government authority needs to be obtained or handled with respect to the execution and performance of this Agreement and the grant of the Equity Transfer Option or Asset Purchase Option hereunder, the Company shall endeavor to assist in satisfying the above conditions.

 

	
 
	
7.1.2
	
without the WFOE’s prior written consent, the Company shall not assist or permit the Existing Shareholders to transfer or otherwise dispose of any Option Equity or create any encumbrance or other third party rights on any Option Equity.

 10 / 18

 

 

	
 
		

 

	
 
	
7.1.3
	
without the WFOE’s prior written consent, the Company shall not transfer or otherwise dispose of any Material Asset (other than in the ordinary course of business) or create any encumbrance or other third party rights on any Company Assets.

 

	
 
	
7.1.4
	
the Company shall not do or permit to be done any behavior or action that may adversely affect the interests of the WFOE under this Agreement, including without limitation, any behavior and action that is subject to the restrictions contained in Article 6.1.

 

	
7.2
	
With the valid term of this Agreement, once the WFOE gives the Exercise Notice,

 

	
 
	
7.2.1
	
 it shall promptly cause the Existing Shareholders to convene a shareholders’ meeting, pass shareholders’ resolutions and take all other necessary actions to approve the Company to transfer all the Transferred Assets at the Transfer Price to the WFOE and/or any other entity or individual designated by the WFOE;

 

	
 
	
7.2.2
	
it shall promptly enter into an asset transfer agreement with the WFOE and/or any other entity or individual designated by the WFOE to transfer all the Transferred Assets at the Transfer Price to the WFOE and/or any other entity or individual designated by the WFOE, and cause the Existing Shareholders to provide necessary support to the WFOE (including provision and execution of all relevant legal documents, performing all government approval and registration procedures and assuming all relevant obligations) in accordance with the WFOE’s requirements and the PRC Law so that the WFOE and/or any other entity or individual designated by the WFOE may acquire all the Transferred Assets, free from and clear of any legal defect or any encumbrance, third party restriction or any other restrictions on the Transferred Assets.

 

ARTICLE VIII

 

CONFIDENTIALITY OBLIGATIONS

 

	
8.1
	
Regardless of whether this Agreement is terminated or not, each Party shall keep strictly confidential all the business secrets, proprietary information, customer information and all other information of a confidential nature about the other Parties known by it during the execution and performance of this Agreement (collectively, the “Confidential Information”). Unless a prior written consent is obtained from the Party disclosing the Confidential Information (the “Disclosing Party”) or unless it is required to be disclosed to third parties according to the stipulation of relevant laws and regulations or the requirement of the place where its affiliate is listed on a stock exchange, the Party receiving the Confidential Information (the “Receiving Party”) shall not disclose to any third party any Confidential Information. The Receiving Party shall not use any Confidential Information other than for the purpose of performing this Agreement.

 

	
8.2
	
The following information shall not be deemed part of the Confidential Information:

 

 11 / 18

 

 

 

	
 
	
(a)
	
any information that has been lawfully acquired by the receiving Party before as evidenced by written documents;

 

	
 
	
(b)
	
any information entering the public domain not attributable to the fault of the Party receiving the information; or

 

	
 
	
(c)
	
any information lawfully acquired by the Party receiving the information through other sources after its receipt of such information.

 

	
8.3
	
For purpose of performing this Agreement, the Receiving Party may disclose the Confidential Information to its relevant employees, agents or professionals retained by it. However, the Receiving Party shall ensure that the aforesaid persons shall comply with the relevant terms and conditions of this Article 8. In addition, the Receiving Party shall be responsible for any liability incurred as a result of such persons’ breach of the relevant terms and conditions of this Article 8.

 

	
8.4
	
Notwithstanding any other provision herein, the effect of this Article 8 shall not be affected by the termination of this Agreement.

 

ARTICLE IX

 

TERM OF AGREEMENT

 

This Agreement shall become effective immediately upon the signing of this agreement by all parties. This Agreement shall terminate after all the Option Equity and the Company Assets are lawfully transferred to the WFOE and/or any other entity or individual designated by the WFOE pursuant to the provisions of this Agreement.

 

ARTICLE X

 

NOTICES

 

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

 

	
10.2
	
If any of such notice or other correspondences is transmitted by facsimile or telex, it shall be treated as delivered immediately upon transmission; if delivered in person, it shall be treated as delivered at the time of delivery; if posted by mail, it shall be treated as delivered five (5) days after posting.

 

ARTICLE XI

 

DEFAULTING LIABILITY

 

	
11.1
	
The Parties agree and confirm that, if any of the Parties (the “Defaulting Party”) substantially violates any agreement herein or substantially fails to perform or delays performance of any of the 

 12 / 18

 

 

		
obligations hereunder, such violation, failure or delay shall constitute a default under this Agreement (a “Default”). The non-defaulting Party shall have the right to request the Defaulting Party to rectify or take remedial actions within a reasonable period. If the Defaulting Party fails to rectify such Default or take remedial actions within such reasonable period or within ten (10) days after the non-defaulting Party notifies the Defaulting Party in writing requiring the Default to be rectified, then the non-defaulting Party is entitled to decide at its own discretion that:

 

	
 
	
11.1.1
	
if any Existing Shareholder or the Company is the Defaulting Party, the WFOE shall be entitled to terminate this Agreement and require the Defaulting Party to indemnify the damages;

 

	
 
	
11.1.2
	
if the WFOE is the Defaulting Party, the non-defaulting Party shall be entitled to require the Defaulting Party to indemnify the damages, but unless otherwise provided for by the PRC Law, the non-defaulting Party has no right to terminate or cancel this Agreement in any circumstances.

 

	
11.2
	
Notwithstanding any other provision herein, the effect of this Article 11 shall not be affected by the termination of this Agreement.

 

 

 

 

ARTICLE XII

 

MISCELLANEOUS

 

	
12.1
	
This Agreement is written in Chinese and executed in four (4) originals, with one (1) original to be retained by each Party hereto.

 

	
12.2
	
The execution, effectiveness, performance, revision, interpretation and termination of this Agreement shall be governed by the PRC Law.

 

	
12.3
	
Any dispute arising out of and in connection with this Agreement shall be resolved through consultations among the Parties. In case the Parties fail to reach agreement within thirty (30) days after the dispute arises, such dispute shall be submitted to China International Economic and Trade Arbitration Commission Shanghai Commission for arbitration in Shanghai in accordance with such Commission’s arbitration rules in effect at the time of applying for arbitration, and the arbitration award shall be final and binding on the Parties.

 

	
12.4
	
None of the rights, powers or remedies granted to any Party by any provision herein shall preclude any other rights, powers or remedies available to such Party at law and under the other provisions of this Agreement. In addition, the exercising by one Party of any of its rights, powers and remedies shall not exclude such Party from exercising any of its other rights, powers and remedies.

 

 13 / 18

 

 

 

	
12.5
	
No failure or delay by a Party in exercising any rights, powers and remedies available to it hereunder or at law (the “Available Rights”) shall result in a waiver thereof, nor shall the waiver of any single or partial exercise of the Available Rights shall exclude such Party from exercising such rights in any other way or exercising the other Available Rights.

 

	
12.6
	
The headings of the provisions herein are for reference only, and in no event shall such headings be used for or affect the interpretation of the provisions hereof.

 

	
12.7
	
Each provision contained herein shall be severable and independent from each of the other provisions. If any one or more provisions herein become(s) invalid, illegal or unenforceable at any time, the validity, legality and enforceability of the remaining provisions herein shall not be affected as a result thereof.

 

	
12.8
	
This Agreement, upon signed, shall supersede any other prior legal documents executed by and among the Parties with respect to the subject matter hereof. Any amendment or supplement hereto shall be made in writing and shall become effective only upon due execution by the Parties hereto.

 

	
12.9
	
Without the WFOE’s prior written consent, neither Existing Shareholder nor the Company shall transfer any of its rights and/or obligations hereunder to any third party. The Existing Shareholders and the Company hereby agree that the WFOE is entitled to transfer any of its rights and/or obligations hereunder to any third party upon written notice thereof to the Existing Shareholders and the Company.

 

	
12.10
	
This Agreement shall be binding on the legal assigns or successors of the Parties.

 

[The remainder of this page intentionally left blank]

 14 / 18

 

 

 

 

[SIGNATURE PAGE]

 

IN WITNESS WHEREOF, the following Parties have executed this Exclusive Call Option Agreement as of the date first above written.

 

	
Qimin WU

	
 
	
 
	
 

	
By:
	
 
	
/s/ Qimin WU

	
 
	
 
	
 

	
Guowen ZHANG

	
 
	
 
	
 

	
By:
	
 
	
/s/ Guowen ZHANG

	
 
	
 
	
 

	
Baoyi Investment Consulting (Shanghai) Co., Ltd.

	
(Seal)
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
/s/ Seal of Baoyi Investment Consulting (Shanghai) Co., Ltd.

	
 
	
 
	
/s/ Xuebin ZHUANG

	
Name:
	
 
	
 

	
Title:
	
 
	
 

	
 
	
 
	
 

	
Shanghai Yedu Enterprise Management Co., Ltd.

	
(Seal)
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
/s/ Seal of Shanghai Yedu Enterprise Management Co., Ltd.

	
 
	
 
	
/s/ Qimin WU

	
Name:
	
 
	
 

	
Title:
	
 
	
 

 

 

 15 / 18

 

 

 

 

Annex 1:

 

Company’s General Information

 

	
Company name:
	
 
	
Shanghai Yedu Enterprise Management Co., Ltd.

	
 
	
 
	
 

	
Registered address:
	
 
	
Block 2, 3, 4, 5, 6, 7, 112-118 Gaoyi Road, Baoshan district, Shanghai

	
 
	
 
	
 

	
Registered capital:
	
 
	
RMB5,000,000

	
 
	
 
	
 

	
Legal representative:
	
 
	
Qimin WU

 

	
Shareholder’s name
	
 
	
Contribution in
registered capital
	
 
	
Percentage of
contribution
	
 
	
Method of
contribution
	
 

	
Qimin WU
	
 
	
RMB
	
3,500,000
	
 
	
70
	
%
	
Cash
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Guowen ZHANG
	
 
	
RMB
	
1,500,000
	
 
	
30
	
%
	
Cash
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Total
	
 
	
RMB
	
5,000,000
	
 
	
100
	
%
	
/
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 16 / 18

 

 

 

Annex 2:

 

Form of Exercise Notice

 

To: [Name of the Existing Shareholder]

 

WHEREAS, we, Shanghai Yedu Enterprise Management Co., Ltd. (the “Company”), [Name of the other Existing Shareholder] and you entered into an Exclusive Call Option Agreement (the “Option Agreement”) on [•] and reached an agreement that you shall transfer the equity interest you hold in the Company to us or any third party designated by us at our request to the extent permitted by the PRC laws and regulations.

 

Therefore, we hereby give this notice to you as follows:

 

We hereby request to exercise the Equity Transfer Option under the Option Agreement and we/[name of company/individual] designated by us will acquire the [•]% of the equity interest you hold in the Company (the “Proposed Acquired Equity”). Upon your receipt of this notice, you shall immediately transfer all the Proposed Acquired Equity to us/[name of designated company/individual] pursuant to the provisions of the Option Agreement.

 

Regards,

 

 

	
 
	
Baoyi Investment Consulting
(Shanghai) Co., Ltd. (Seal)

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
Authorized representative:

	
 
	
Date:

 

 17 / 18

 

 

 

Annex 3:

 

Form of Exercise Notice

 

To: [●]

 

WHEREAS, we, Qimin WU, Guowen ZHANG and you entered into an Exclusive Call Option Agreement (the “Option Agreement”) on [●] and reached an agreement that you shall transfer your assets to us or any third party designated by us at our request to the extent permitted by the PRC laws and regulations.

 

Therefore, we hereby give this notice to you as follows:

 

We hereby require to exercise the Asset Purchase Option under the Option Agreement and we/[name of company/individual] designated by us will acquire the assets owned by you as stated in a separate list (the “Proposed Acquired Assets”). Upon your receipt of this notice, you shall immediately transfer all the Proposed Acquired Assets to us/[name of designated company/individual] pursuant to the provisions of the Option Agreement.

 

Regards,

 

 

	
 
	
Baoyi Investment Consulting (Shanghai)
Co., Ltd. (Seal)

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
Authorized representative:

	
 
	
Date:

 

 18 / 18

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