Document:

Exhibit 10.13

 

[English Translation]

 

Loan Agreement

 

This Loan Agreement (“Agreement”) is entered into by and between the following parties in Shanghai on November 1, 2017:

 

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

 

Address: ***

 

Party B1: Zhang Xi

 

ID Number: ***

 

Party B2: Shanghai Xi Zhi Enterprise Management Co., Ltd. (together with Zhang Xi, “Party B”)

 

Address: ***

 

WHEREAS:

 

1.                                               Party A is a wholly foreign-owned enterprise lawfully registered and incorporated under the laws of the People’s Republic of China (“PRC”);

 

2.                                               Party B holds 100% of the equity interests in Shanghai Rui Si Technology Information Consulting Co., Ltd. (“Target Company”), among which: Party B1 holds 62% of the equity interests in the Target Company; and Party B2 holds 38% of the equity interests in the Target Company.

 

3.                                               Party A intends to provide Party B with loans for the purpose provided under this Agreement.

 

NOW, THEREFORE, the Parties enter into this Agreement to specify the terms and conditions of such loans as follows:

 

1.                                               Loans

 

1.1                                        Party A agrees to provide loans without interest for Party B pursuant to the terms and conditions of this Agreement, the amount of which shall be separately agreed in writing between the Parties; Party B agrees to accept such loans pursuant to the terms and conditions of this Agreement and apply it for the purpose of funding  business development of the Target Company or other purposes agreed by Party A.

 

 

2.                                               Term of the Loans

 

2.1                                        Except for the circumstances under Section 3.1 of this Agreement, the term of the loans provided by Party A for Party B under this Agreement shall be ten (10) years from the date of this Agreement; the term of the loans shall be automatically extended by ten years upon its expiry and shall be automatically further extended by ten years upon each expiry. At any time during the term of the loans or any extended term of the loans, Party A is entitled to send a written notice to Party B requesting the repayment of the loans and Party B shall repay the loans within thirty (30) days after receipt of such written notice. Without Party A’s written notice, Party B shall not make prepayment of the loans during the term of the loans or any extended term of the loans.

 

3.                                               Repayment of the Loans

 

3.1                                        During the term of the loans or any extended term of the loans, if any of the following circumstances occurs to any party of Party B, Party A is entitled to determine by written notice that all loans owed by such party of Party B to Party A become immediately due and such party of Party B shall repay the loans in the manner stipulated in this Agreement:

 

(1)                       such party of Party B fails to repay any of its other indebtedness when it becomes due and payable, or there is occurrence of any other material personal indebtedness that may affect its capability of repayment under this Agreement;

 

(2)                       such party of Party B, in case it is a natural person, deceases, has no civil capability or limited civil capability;

 

(3)                       such party of Party B ceases to be a shareholder of the Target Company for any reason;

 

(4)                       such party of Party B commits any criminal act or is involved in any criminal activities;

 

(5)                       A claim with a value more than RMB1,000,000 is made against such party of Party B  by any third party;

 

(6)                       any Event of Default (as defined in the Equity Pledge Agreement) occurs; or

 

(7)                       to the extent permitted by PRC laws, Party A can directly hold equity interests in the Target Company and the Target Company can lawfully continue its business as currently operated, and Party A has sent a written notice pursuant to Section 3.2 under this Agreement to Party B regarding the purchase of its equity interests in the Target Company to exercise its purchase right.

 

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3.2                                        The Parties hereby agree and acknowledge that to the extent permitted by PRC laws, Party A is entitled but not obligated to at any time purchase or designate any other person (including natural persons, legal persons or other entities) to purchase all or part of Party B’s equity interests in the Target Company (“Purchase Right”). Upon Party A’s issuance of written notice to exercise its Purchase Right, Party B shall, as intended and instructed by Party A, immediately transfer all its equity interests in the Target Company at the lowest price permissible under then applicable laws and regulations to Party A or such person designated by Party A. The Parties agree to execute separate agreements with other applicable parties regarding the aforesaid matter.

 

3.3                                        The Parties hereby agree and acknowledge that Party B shall repay the loans under this Agreement to Party A only in the following manner: upon maturity or accelerated maturity of the loans under this Agreement, Party B (or its successor or transferee) shall, pursuant to the requirements in Party A’s written notice, transfer its equity interests in the Target Company to Party A or any person designated by Party A to the extent permitted by PRC laws, and repay the loans provided by Party A to Party B under this Agreement with proceeds from such transfer of equity interests. Party A shall provide unconditional financial support to the Target Company on reliance of this Agreement or other agreement. Notwithstanding anything to the contrary under this Agreement, Party A hereby irrevocably agrees that if Party B is unable (for example, not permitted by laws) to repay the loans under this Agreement, Party A shall waive its right to claim the repayment of the loans from Party B.

 

3.4                                        The Parties hereby agree and acknowledge that, unless otherwise agreed under this Agreement, Party A shall not charge any interest on the loans provided for Party B. Notwithstanding the foregoing, when the loans are due and Party B is required to transfer its equity interests to Party A or any person designated by Party A, if the actual transfer price of Party B’s equity interests in the Target Company (“Corresponding Equity”) is higher than the principal of the loans provided to Party B due to legal requirements or any other reason, the portion of the proceeds from transfer of the Corresponding Equity by Party B in excess of such principal shall constitute interest accrued upon the loans or costs of funding commitment and shall be repayable to Party A together with the principal of the loans.

 

3.5                                        The Parties hereby agree and acknowledge that, Party B is deemed to have fulfilled its repayment obligations under this Agreement only when the following conditions are all satisfied:

 

(1)                       to the extent permitted by PRC laws, Party B has transferred all of its equity interests in the Target Company to Party A and/or any person designated by Party A; and

 

(2)                       Party B has used all of the proceeds from the transfer of Corresponding Equity (including the principal of the loans and the highest interest accrued upon the loans or funding costs permitted by then applicable laws) as to Party A repayment of the loans.

 

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4.                                               Security

 

4.1                                        In order to secure repayment of the debts under this Agreement, Party B agrees to pledge all of its equity interests in the Target Company to Party A (“Equity Pledge”).

 

4.2                                        The Parties acknowledge that other than the loans contemplated under this Agreement, the debts secured by the Equity Pledge shall also include all the debts and obligations of Party B and/or the Target Company owed to Party A under the Exclusive Technology and Consultation Service Agreement, Exclusive Purchase Right Agreement and Shareholders’ Voting Rights Agreement, each executed by the parties thereto on the date of this Agreement. The Parties agree to separately execute the Equity Pledge Agreement with applicable parties regarding the aforesaid matter.

 

5.                                               Representations and Warranties

 

5.1                                        Party A represents and warrants to Party B that:

 

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

 

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

 

(3)                       The principal of the loans provided by Party A for Party B is lawfully owned by Party A.

 

5.2                                        Party B represent and warrant to Party A that:

 

(1)                       Party B are natural persons with full civil capacity; they have full and independent legal status and legal capacity, and have been duly authorized to execute, deliver and perform this Agreement, and may sue or be sued as an independent party;

 

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(2)                       They have the full power and authority to execute and deliver this Agreement and all other documents to be executed by it in connection with the transactions contemplated in this Agreement as well as full power and authority to consummate the transactions contemplated in this Agreement. The entry into and performance of this Agreement by them do not violate or conflict with any law applicable to them in effect, any agreement to which they are a party or by which their assets are bound, any court judgment, any arbitral award, or any decision of any administrative authority. This Agreement is lawfully and duly executed and delivered by them. This Agreement constitutes lawful and binding obligations enforceable against them in accordance with the terms of this Agreement. The execution and performance of this Agreement by them comply with the Target Company’s articles of association or other organizational documents;

 

(3)                       There is no pending or threatened dispute, litigation, arbitration, administrative proceedings or any other proceedings in which Party B is involved;

 

(4)                       This Agreement constitutes lawful and effective obligations enforceable against Party B in accordance with relevant laws;

 

(5)                       Other than the pledge created under the Equity Pledge Agreement (including any amendment, supplement or restatement thereto from time to time) executed by Party B on the date of this Agreement in respect of the Equity Pledge and the proxy rights created under the Shareholders’ Voting Rights Agreement (including any amendment, supplement or restatement thereto from time to time) executed by Party B on the date of this Agreement, Party B have not created any lien, pledge, or any other security on their equity interests in the Target Company, have not issued any offer to any third party on transfer of such equity interests, have not accepted any offer issued by any third party to purchase such equity interests, and have not executed any agreement regarding the transfer of Party B’s equity interests in the Target Company with any third party.

 

5.3                                        Party B undertake that, during the term of this Agreement:

 

(1)                       Without prior written consent of Party A, they shall not use the loans for any purpose other than as agreed in this Agreement;

 

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

 

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

 

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

 

(5)                       Each time Party A exercises its Purchase Right of the equity interests, they shall cause the Target Company to promptly convene a shareholders’ meeting and vote in favor of the transfer of the purchased equity interests under this Agreement;

 

(6)                       At Party A’s request at any time, they shall immediately transfer their equity interests in the Target Company to Party A and/or its designated person and waive their rights of first refusal regarding the equity interests of the Target Company;

 

(7)                       At the request of Party A, they shall immediately inform Party A of any actual or potential litigation, arbitration or administrative proceedings regarding their equity interests;

 

(8)                       Prior to the transfer of their equity interests to Party A, they shall execute all necessary or proper documents, take all necessary or proper actions, raise all necessary and proper claims of right, or make all necessary or proper defenses against claims of compensation so as to maintain the ownership of their equity interests;

 

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(9)                       If Party B sell their equity interests in the Target Company to the extent permitted by Party A, they shall repay the loans to Party A with all the proceeds received from such sale in priority;

 

(10)                At the request of Party A, they shall appoint or engage the persons designated by Party A as directors and senior management members of the Target Company;

 

(11)                Without prior written consent of Party A, they shall not, and shall cause the management of the Target Company not to,  dispose of any material company assets (other than that incurred in the ordinary course of business);

 

(12)                Without prior written consent of Party A, they shall not, and shall cause the management of the Target Company not to,  terminate any material agreements entered into by the Target Company or enter into any other agreements in conflict with such existing material agreements;

 

(13)                Without prior written consent of Party A, they shall not appoint or remove any director, supervisor or any other management member of the Target Company who shall be appointed and removed by the existing shareholders;

 

(14)                Without prior written consent of Party A, they shall cause the Target Company not to declare or make any distribution of any distributable profits, bonuses or dividends;

 

(15)                They shall ensure that the Target Company will maintain its valid existence and will not be terminated, liquidated or dissolved without prior written consent of Party A;

 

(16)                Without prior written consent of Party A, they shall not cause or agree to any amendment by the Target Company of its articles of association;

 

(17)                Without prior written consent of Party A, they shall not cause or agree to any material change by the Target Company of its business scope, or termination or suspension by the Target Company of any of the business currently conducted by the Target Company;

 

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

 

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(19)                Without prior written consent of Party A, they shall not cause or agree to any related party transaction between the Target Company and any of its direct or indirect shareholders, directors, supervisors, management or their respective affiliates;

 

(20)                Without prior written consent of Party A, they shall not conduct any action or omission that will cause conflict of interest between them and the company or Party A;

 

(21)                Without prior written consent of Party A, they shall not conduct any action or omission which is likely to impair the assets or goodwill of the Target Company or affect the validity of the business permits of the Target Company;

 

(22)                They shall promptly inform Party A of any circumstances to their knowledge which are likely to have a material adverse effect on the existence, business operation, financial conditions, assets or goodwill of the Target Company;

 

(23)                Without prior written consent of Party A, they shall not cause or agree to any material amendment by the Target Company to its accounting policies or to any change by the Target Company of its accountants ;

 

(24)                They shall strictly comply with all the provisions in this Agreement and any other agreements jointly or severally executed by the parties thereto, duly perform all obligations under such agreements, and shall not conduct any action or omission which is capable to affect the validity and enforceability of such agreements.

 

For the purpose of this Section 5.3, “Target Company” shall refer to the Target Company and all of its subsidiaries (unless otherwise required by the context).

 

6.                                               Liability for Default, Governing Law and Dispute Resolution

 

6.1                                        Any Party whose breach of this Agreement results in all or any part of this Agreement being incapable to be performed shall be liable for such breach and indemnify the other Party for its losses thereby incurred (including any litigation fee and legal fee incurred thereby); if both Parties are in breach of this Agreement, they shall bear corresponding liabilities respectively based on actual situations. If Party B fail to perform their repayment obligations within the term under this Agreement, they shall pay overdue interest at 0.01% of the amount overdue and payable on daily basis until the date of repayment of all principals, overdue interest and other amounts.

 

6.2                                        The entry into, effectiveness, interpretation and the dispute resolution of this Agreement shall be governed by PRC laws.

 

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

 

7.                                               Confidentiality

 

7.1                                        Prior to the entry into and during the term of this Agreement, a Party (“Disclosing Party”) disclosed or may from time to time disclose confidential information (including without limitation operation information, clients materials, financial materials, and contracts) to the other Party (“Receiving Party”). The Receiving Party shall keep the confidential information in confidence and shall not use such confidential information except for the purposes explicitly provided under this Agreement. The preceding sentence is not applicable to any information (a) that has already been obtained by the Receiving Party with evidence prepared in writing prior to the Disclosing Party’s disclosure of such information, (b) that becomes or may become public not due to the Receiving Party’s breach of contract; (c) acquired by the Receiving Party from a third party that has no confidentiality obligations regarding such information; and (d) disclosed by either Party in accordance with relevant laws, regulations, courts, arbitration institutions or regulatory authorities, or any information disclosed to the legal or financial advisors, lenders or potential lenders (including the agents or trustees of the lenders), and financing arrangers or potential financing arrangers of such Party or its related parties in its ordinary course of business.

 

7.2                                        This Article 7 shall bind upon the Parties regardless of termination or expiry of this Agreement.

 

8.                                               Force Majeure

 

8.1                                        A “Force Majeure” event refers to any event which is unforeseeable, unavoidable and/or insurmountable, resulting in the inability of either Party to this Agreement to perform all or part of this Agreement. Such event shall include without limitation earthquakes, typhoons, floods, fires, wars, strikes, turbulence, governmental actions, and changes in laws or the application thereof.

 

8.2                                        If a Force Majeure event occurs, a Party’s obligations under this Agreement affected by Force Majeure shall be automatically suspended during the delay period caused by such Force Majeure event and the term of performance of such obligations shall be automatically extended by such term of suspension, and such Party shall not be punished or assume any liability for such reason. In occurrence of a Force Majeure event, the Parties shall negotiate immediately to seek a fair solution, and shall make all reasonable efforts to reduce the impact of such Force Majeure event to the minimum.

 

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9.                                               Miscellaneous

 

9.1                                        Any approval, instruction, demand, notice, exercise or waiver of any right, or other action of Party A shall be made in writing and attached with the resolutions of relevant shareholders’ meeting, board of directors or similar decision-making body of such company’s offshore indirect holding company (ONESMART EDUCATION GROUP LIMITED) approving thereof (provided that such approval is required under the articles of association of ONESMART EDUCATION GROUP LIMITED).

 

9.2                                        This Agreement shall be formed and become effective upon execution/fixture of seal by the Parties or their authorized representatives.  After the date hereof, this Agreement may not be amended unless mutually agreed by the Parties in writing.

 

9.3                                        This Agreement is severable and any invalidity or unenforceability of any specific provision shall not affect the validity and enforceability of other provisions of this Agreement.

 

9.4                                        No failure or delay by a Party in exercising any right under this Agreement shall operate as waiver of such right by such Party; and the exercise or partial exercise of any right by such Party shall not prevent it from exercising such right again in the future.

 

9.5                                        This Agreement shall be binding upon the Parties and their respective inheritors, successors and permitted transferees and shall be entered into solely for the interests of the aforesaid people. Without prior written consent of Party A, Party B shall not transfer, pledge or otherwise transfer any of its rights, interests or obligations under this Agreement.

 

9.6                                        Party B hereby agree that Party A is entitled to transfer any of its rights and obligations under this Agreement to other third party when needed and without prior notice to or consent of Party B. Without prior written consent of Party A, Party B shall not transfer any of its rights and obligations under this Agreement to any third party.

 

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

 

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

Registered Address: ***

Tel: ***

Recipient: ***

 

Party B: Zhang Xi, Shanghai Xi Zhi Enterprise Management Co., Ltd.

Domicile: ***

Tel: ***

Recipient: ***

 

9.8                                        This Agreement is made in Chinese in three (3) originals, each of which shall have equal legal effect.

 

[Intentionally left blank below]

 

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

 

	
Party A:
    	
 
    
	
 
    	
 
    
	
Shanghai   Jing Xue Rui Information and Technology Co., Ltd. (seal)
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Meng Xiaoqiang
    	
 
    
	
 
    	
 
    
	
Name:   Meng Xiaoqiang
    	
 
    
	
 
    	
 
    
	
Position: Legal Representative
    	
 
    

 

Signature Page to Loan Agreement

 

 

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

 

Party B:

 

Zhang Xi

 

	
Signature:
    	
/s/ Zhang Xi
    	
 
    

 

Signature Page to Loan Agreement

 

 

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

 

	
Party B:
    	
 
    
	
 
    	
 
    
	
Shanghai   Xi Zhi Enterprise Management Co., Ltd. (Seal)
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Zhang Xi
    	
 
    
	
 
    	
 
    
	
Name:   Zhang Xi
    	
 
    
	
 
    	
 
    
	
Position: Legal Representative
    	
 
    

 

Signature Page to Loan AgreementExhibit 10.14

 

SHARE PURCHASE AGREEMENT

 

THIS SHARE PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of April 21, 2017 (the “Effective Date”) by and among:

 

(1)                       One Smart Education Group Limited, an exempted company incorporated and existing under the laws of the Cayman Islands (the “Company”);

 

(2)                       each of the companies listed on the table of Part A of Schedule I (each an “Ordinary Shareholder” and collectively, the “Ordinary Shareholders”);

 

(3)                       each of the companies listed on the table of Part B and Part C of Schedule I (each a “Series A Investor” and collectively, the “Series A Investors”).

 

Each of the parties to this Agreement is referred to herein individually as a “Party” and collectively as the “Parties”.

 

RECITALS

 

(A)                     The Company desires to issue and sell to each Ordinary Shareholder and each Ordinary Shareholder desires, severally but not jointly, to purchase from the Company that certain number of Class A ordinary shares and Class B ordinary shares of the Company with a par value of US$0.000001 per share, with the rights as set forth in the First Amended Memorandum of Articles and Articles of Association of the Company (the “M&AA”) (the “Class A Ordinary Shares” or “Class B Ordinary Shares”, and collectively the “Ordinary Shares”) on the terms and subject to the conditions of this Agreement.

 

(B)                     The Company desires to issue and sell to each Series A Investor as listed on the table of Part B of Schedule I and such Series A Investor desires, severally but not jointly, to purchase from the Company that certain number of series A preferred shares of the Company with a par value of US$0.000001 per share, with the rights and privileges as set forth in the M&AA on the terms and subject to the conditions of this Agreement (“Series A Preferred Shares”).

 

(C)                     The Company desires to issue and sell to each Series A Investor as listed on the table of Part C of Schedule I and such Series A Investor desires to purchase from the Company that certain number of series A-1 preferred shares of the Company with a par value of US$0.000001 per share, with the rights and privileges as set forth in the M&AA on the terms and subject to the conditions of this Agreement (“Series A-1 Preferred Shares”, together with the Series A Preferred Shares, the “Preferred Shares”).

 

(D)                     The Company desires to reserve a total number of 288,599,939 shares of Class A Ordinary Shares for the issuance to the current or previous officers, directors, employees or consultants of the Group Companies pursuant to the existing incentive plan of the Company (the “ESOP”).

 

And therefore, in consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

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1.                                      SALE AND PURCHASE OF SHARES.

 

1.1                               Authorization. As of the Closing, the Company shall have authorized, pursuant to the terms and conditions of this Agreement, (i) the amendment to the share capital of the Company from US$50,000 divided into 50,000 Ordinary Shares to US$50,000 redesignated, reclassified and divided into (a) 46,546,879,171 Class A Ordinary Shares of par value US$0.000001 each, (b) 1,891,800,066 Class B Ordinary Shares of par value US$0.000001 each, (c) 1,525,563,563 Series A Preferred Shares of par value US$0.000001 each, and (d) 35,757,200 Series A-1 Preferred Shares of par value US$0.000001 each; (ii) the issuance of a total number of 94,897,359 Class A Ordinary Shares, (iii) the reclassification and/or issuance of a total number of 1,891,800,066 Class B Ordinary Shares, (iv) the issuance of a total number of 1,525,563,563 Series A Preferred Shares, (v) the issuance of a total number of 35,757,200 Series A-1 Preferred Shares, and (vi) the reservation of a total number of 288,599,939 shares of Class A Ordinary Shares pursuant to the ESOP.

 

1.2                               Sale and Issuance of Ordinary Shares. Subject to the terms and conditions of this Agreement, at the Closing, (i) the Company agrees to reclassify and divide 1 ordinary share held by Happy Edu Inc. to 1,000,000 Class B Ordinary Shares; (ii) the Company agrees to issue and sell to each Ordinary Shareholder, and each Ordinary Shareholder hereby agrees, severally but not jointly, to subscribe for and purchase from the Company, that class of Ordinary Shares set out opposite such Ordinary Shareholder’s name in the second column of the table of Part A of  Schedule I in that number set out opposite such Ordinary Shareholder’s name in the third column of the table of Part A of Schedule I (with respect to such Ordinary Shareholder, its “Ordinary Subscription Shares”), at an aggregate purchase price in respect of each Ordinary Shareholder set out opposite such Ordinary Shareholder’s name in the fourth column of the table of Part A of Schedule I or any other purchase price as agreed by such Ordinary Shareholder and the Company in writing (with respect to such Ordinary Shareholder, its “Ordinary Subscription Price”).

 

1.3                               Sale and Issuance of Preferred Shares. Subject to the terms and conditions of this Agreement, at the Closing, (i) the Company agrees to issue and sell to each Series A Investor, and each Series A Investor hereby agrees, severally but not jointly, to subscribe for and purchase from the Company, that number of Series A Preferred Shares set out opposite such Series A Investor’s name in the second column of the table of Part B of  Schedule I (with respect to such Series A Investor, its “Series A Subscription Shares”), at an aggregate purchase price in respect of each Series A Investor set out opposite such Series A Investor’s name in the third column of the table of Part B of Schedule I or any other purchase price as agreed by such Series A Investor and the Company in writing (with respect to such Series A Investor, its “Series A Subscription Price”), (ii) the Company agrees to issue and sell to each Series A Investor as listed on the table of Part C of Schedule I and each Series A Investor as listed on the table of Part C of Schedule Ihereby agrees to subscribe for and purchase from the Company, that number of Series A-1 Preferred Shares set out opposite such Series A Investor’s name in the second column of the table of Part C of  Schedule I ( “Series A-1  Subscription Shares”, together with the Series A Subscription Shares, the “Preferred Subscription Shares”) at an aggregate purchase price set out opposite such Series A Investor’s name in the third column of the table of Part C of Schedule I or any other purchase price as agreed by such Series A Investor and the Company in writing (the “Series A-1 Subscription Price”).

 

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1.4                            Closing.

 

(a)                                 The consummation of the sale and issuance of the Ordinary Subscription Shares pursuant to Section 1.2 and the consummation of the sale and issuance of the Preferred Subscription Shares pursuant to Section 1.3 (together with the consummation of the sale and issuance of the Ordinary Subscription Shares, the “Closing”, and the date of the Closing, the “Closing Date”) shall simultaneously take place remotely via the exchange of documents and signatures as soon as practicable on a date as determined by the Company.

 

(b)                                 The capitalization table of the Company immediately after the Closing is shown on the table of Schedule II attached hereto.

 

1.5                               Deliverables. At the Closing, the Company shall deliver or cause to be delivered the following items to each Ordinary Shareholder and each Series A Investor:

 

(i)                                     a copy of the updated register of members of the Company as of the Closing Date, reflecting the issuance to such Ordinary Shareholder or Series A Investor of the relevant number of Ordinary Subscription Shares, Series A Subscription Shares or Series A-1 Subscription Shares pursuant to Sections 1.2 or 1.3;

 

(ii)                                  a copy of one or more share certificates issued in the name of such Ordinary Shareholder or Series A Investor, representing the relevant number of the Ordinary Subscription Shares, Series A Subscription Shares or Series A-1 Subscription Shares subscribed for pursuant to Sections 1.2 or 1.3 (and within ten (10) business days following the Closing, the Company shall deliver to each Ordinary Shareholder (except for Smart Changing Inc.) or Series A Investor (except for Da Cong Limited and Guohe Limited) the original copy of such share certificates).

 

1.6                            Payment of Subscription Price.

 

(a)                                 At the Closing, each Ordinary Shareholder shall or shall cause its designated person to pay its Ordinary Subscription Price set forth opposite such Ordinary Shareholder’s name in the fourth column of the table of Part A of  Schedule I for its Ordinary Subscription Shares (A) by wire transfer of immediately available funds to an account designated in writing by the Company and delivered to such Ordinary Shareholder at least three (3) business days before the Closing, or (B) in a form as otherwise determined by the board of directors of the Company.

 

(b)                                 At the Closing, each Series A Investor as listed on the table of Part B of Schedule I shall or shall cause its designated person to pay its Series A Subscription Price set forth opposite such Series A Investor’s name in the third column of the table of Part B of Schedule I, and each Series A Investor as listed on the table of Part C of Schedule I shall or shall cause its designated person to pay its Series A-1 Subscription Price set forth opposite such Series A Investor’s name in the third column of the table of Part C of Schedule I (A) by wire transfer of immediately available funds to an account designated in writing by the Company and delivered to each Series A Investor at least three (3) business days before the Closing, or (B) in a form as otherwise determined by the board of directors of the Company.

 

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2.                                      REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company hereby represents and warrants to each Ordinary Shareholder and each Series A Investor that:

 

2.1                               Organization, Good Standing and Qualification. The Company is duly incorporated and organized, validly existing and in good standing (to the extent such concept exists in the relevant jurisdiction of incorporation) and in compliance with all registration and approval requirements, in all material respects, under, and by virtue of, the laws of its jurisdiction of incorporation or organization and has all requisite power and authority to own and operate its properties and assets and to carry on its business as now conducted and as currently proposed to be conducted.

 

2.2                               Due Authorization. The Company has all requisite power and authority to execute and deliver this Agreement and to carry out and perform its obligations hereunder. All actions on the part of the Company necessary for the authorization, execution and delivery of this Agreement, the performance of all obligations hereunder, have been taken or will be taken prior to the Closing. This Agreement has been or will be on or prior to the Closing, duly executed and delivered by the Company and when executed and delivered by all parties thereto, constitutes valid and legally binding obligations of the Company, enforceable against the Company in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by applicable laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

2.3                     No Conflicts. The execution, delivery and performance of this Agreement by the Company do not, and the consummation by the Company of the transactions contemplated hereby will not, with or without notice or lapse of time or both, (i) result in any violation of, be in conflict with, or constitute a default under any provision of the M&AA, (ii) result in a breach of, or constitute a default under, or termination of, any contract to which the Company is a party or by which the Company or its property or assets is bound or result in the acceleration of any obligation of the Company (whether to make payment or otherwise) to any person, or (iii) result in any violation of, be in conflict with, or constitute a default under, in any material respect, any governmental order or any applicable laws.

 

2.4                               Valid Issuance and Transfer of Shares. The Ordinary Subscription Shares, and the Preferred Subscription Shares, when issued, delivered and paid for in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid and non-assessable, free from any liens (except for any lien under applicable laws and the M&AA). The issuance of any Ordinary Subscription Shares and Preferred Subscription Shares is not subject to any pre-emptive rights or rights of first refusal, or if any such pre-emptive rights or rights of first refusal exist, waiver of such rights has been obtained or will be obtained prior to the Closing from the holders thereof.

 

4

 

2.5                               Consents and Approvals.  All consents, approvals, orders or authorizations of, or registrations, qualifications, designations, declarations or filings with, any governmental authority or any other person (including the board of directors (or other governing body) and shareholders (if required by applicable laws) of the Company required in connection with the execution, delivery and performance by the Company of this Agreement or the consummation of the transactions contemplated hereby have been obtained or made or will be obtained or made prior to the Closing, other than those that would not reasonably be expected to have an adverse effect on the ability of the Company to perform its obligations under this Agreement in any material respect.

 

3. REPRESENTATIONS AND WARRANTIES OF THE ORDINARY SHAREHOLDERS AND THE SERIES A INVESTORS

 

Each Ordinary Shareholder and each Series A Investor hereby severally but not jointly represents and warrants to the Company that:

 

3.1                               Organization, Good Standing and Qualification. Such Party is duly incorporated and organized, validly existing and in good standing (to the extent such concept exists in the relevant jurisdiction of incorporation) and in compliance with all registration and approval requirements, in all material respects, under, and by virtue of, the laws of its jurisdiction of incorporation or organization and has all requisite power and authority to own and operate its properties and assets and to carry on its business as now conducted and as currently proposed to be conducted.

 

3.2                               Due Authorization. Such Party has all requisite power and authority to execute and deliver this Agreement and to carry out and perform its obligations hereunder. All actions on the part of such Party necessary for the authorization, execution and delivery of this Agreement, the performance of all obligations hereunder, have been taken or will be taken prior to the Closing. This Agreement has been or will be on or prior to the Closing, duly executed and delivered by such Party and when executed and delivered by all parties thereto, constitutes valid and legally binding obligations of such Party, enforceable against such Party in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by applicable laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

3.3                               No Conflicts. The execution, delivery and performance of this Agreement by such Party do not, and the consummation by such Party of the transactions contemplated hereby and will not, with or without notice or lapse of time or both, (i) result in any violation of, be in conflict with, or constitute a default under any provision of any charter document of such Party, (ii) result in a breach of, or constitute a default under, or termination of, any contract to which such Party is a party or by which such Party (whether to make payment or otherwise) to any person, or (iii) result in any violation of, be in conflict with, or constitute a default under, in any material respect, any governmental order or any applicable laws.

 

5

 

4.MISCELLANEOUS.

 

4.1                               Governing Law. This Agreement shall be governed by and construed under the Laws of Hong Kong, without regard to principles of conflicts of law thereunder.

 

4.2                               Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto whose rights or obligations hereunder are affected by such amendments.

 

4.3                               Entire Agreement. This Agreement and exhibits hereto and thereto, which are hereby expressly incorporated herein by this reference constitute the entire understanding and agreement between the parties with regard to the subjects hereof and thereof.

 

4.4                               Notices. Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to any other Party at the address set forth in Exhibit A, at the time of delivery; (b) when sent by courier to any other Party at the address set forth in Exhibit A with next-business-day delivery guaranteed, three (3) business days after deposit with an overnight delivery service, postage prepaid, addressed to the relevant Party, provided that the sending Party receives a confirmation of delivery from the delivery service provider; (c) when sent by fax to any other Party at the number set forth in  Exhibit A attached hereto, on the business day immediately after the date of transmission, provided that the transmitting device generates a report of successful transmission; (d) when sent by electronic mail to any other Party at the address set forth in Exhibit A, on the business day immediately after the date of transmission, provided that receipt shall not occur if the sending Party an automated message that the electronic mail has not been delivered to the intended recipient; (e) when sent to any other Party by mail at the address set forth in Exhibit A, seven (7) business days after deposit in the mail as air mail or certified mail, receipt requested, postage prepaid and addressed to the relevant Party. A Party may change or supplement the mailing addresses, fax number, electronic mail address given in Exhibit A, or designate additional mailing addresses, fax number or electronic mail address for purposes of this Section 4.4 by giving, the other Parties written notice of the new mailing address, fax number or electronic mail address in the manner set forth above. Notwithstanding the foregoing, to the extent a “with a copy to” address is designated, notice must also be given to such address in the manner above for such notice, request, consent or other communication hereunder to be effective.

 

Each person making a communication hereunder by facsimile shall promptly confirm by telephone to the person to whom such communication was addressed each communication made by it by facsimile pursuant hereto but the absence of such confirmation shall not affect the validity of any such communication. A party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 4.4 by giving, the other party written notice of the new address in the manner set forth above.

 

6

 

4.5                     Amendments and Waivers. Any term of this Agreement may be amended only with the written consent of all parties hereto, provided that any term of this Agreement with respect to the amount or payment condition of any Ordinary Subscription Price, Series A Subscription Price or Series A-1 Subscription Price by any Ordinary Shareholder or Series A Investor may be amended with the written consent of such Ordinary Shareholder or Series A Investor on one hand and the Company on the other. Any amendment effected in accordance with this Section 4.5 shall be binding upon all of the parties hereto, and their respective assigns. Notwithstanding the foregoing, the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Party against whom such waiver is sought.

 

4.6                               Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party hereto, upon any breach or default of any other party hereto under this Agreement, shall impair any such right, power or remedy of such former party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach of default thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party hereto of any breach of default under this Agreement or any waiver on the part of any party hereto of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, or by law or otherwise afforded to the parties hereto shall be cumulative and not alternative.

 

4.7                               Interpretation; Titles and Subtitles. This Agreement shall be construed according to its fair language. The rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. Unless otherwise expressly provided herein, all references to Sections and Exhibits herein are to Sections and Exhibits of this Agreement.

 

4.8                               Counterparts; Facsimile. This Agreement may be executed by facsimile signature and in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

 

4.9                               Severability. If any provision of this Agreement is found to be invalid or unenforceable, then such provision shall be construed, to the extent feasible, so as to render the provision enforceable and to provide for the consummation of the transactions contemplated hereby on substantially the same terms as originally set forth herein, and if no feasible interpretation would save such provision, it shall be severed from the remainder of this Agreement, which shall remain in full force and effect unless the severed provision is essential to the rights or benefits intended by the parties. In such event, the parties shall use best efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which most nearly effects the parties’ intent in entering into this Agreement.

 

4.10              Further Assurances. Each party hereto shall from time to time and at all times hereafter make, do, execute, or cause or procure to be made, done and executed such further acts, deeds, conveyances, consents and assurances without further consideration, which may reasonably be required to effect the transactions contemplated by this Agreement.

 

7

 

4.11              Dispute Resolution. Each of the Parties irrevocably (i) agrees that any dispute or controversy arising out of, relating to, or concerning any interpretation, construction, performance or breach of this Agreement, shall be settled by arbitration to be held in Hong Kong which shall be administered by the Hong Kong International Arbitration Centre (“HKIAC”) in accordance with the HKIAC Procedures for the Administration of International Arbitration in force at the time of the commencement of the arbitration (the “Arbitration Rules”), (ii) waives, to the fullest extent it may effectively do so, any objection which it may now or hereafter have to the laying of venue of any such arbitration. There shall be three arbitrators, selected in accordance with the Arbitration Rules. The arbitration shall be conducted in Chinese and English. The decision of the arbitration tribunal shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitration tribunal’s decision in any court having jurisdiction. The parties to the arbitration shall each pay an equal share of the costs and expenses of such arbitration, and each party shall separately pay for its respective counsel fees and expenses; provided, however, that the prevailing party in any such arbitration shall be entitled to recover from the non-prevailing party its reasonable costs and attorney fees. The Parties acknowledge and agree that, in addition to contract damages, the arbitrators may award provisional and final equitable relief, including injunctions and specific performance.

 

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8

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

One Smart Education Group Limited

 

	
By:
    	
/s/ Zhang Xi
    	
 
    
	
 
    	
 
    
	
Name: Zhang Xi
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

Happy Edu Inc.

 

	
By:
    	
/s/ Zhang Xi
    	
 
    
	
 
    	
 
    
	
Name: Zhang Xi
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
Smart Changing Inc.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Hu Guozhi
    	
 
    
	
 
    	
 
    
	
Name: Hu Guozhi
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
Da Cong Limited
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Chen Gang
    	
 
    
	
 
    	
 
    
	
Name: Chen Gang
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
Guohe Limited
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Chen Guohe
    	
 
    
	
 
    	
 
    
	
Name: Chen Guohe
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
Juniperbridge Capital Limited
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Zheng Lina
    	
 
    
	
 
    	
 
    
	
Name: Zheng Lina
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
Teakbridge Capital Limited
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Feng Juan
    	
 
    
	
 
    	
 
    
	
Name: Feng Juan
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
Jiia Hong Limited
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Geng Xiaofei
    	
 
    
	
 
    	
 
    
	
Name: Geng Xiaofei
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
Vicentsight Limited
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Wang Dongdong
    	
 
    
	
 
    	
 
    
	
Name: Wang Dongdong
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
XINHUA GROUP INVESTMENT LIMITED
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Wu Junbao
    	
 
    
	
 
    	
 
    
	
Name: Wu Junbao
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
Li Yeah Limited
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Li Ye
    	
 
    
	
 
    	
 
    
	
Name: Li Ye
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
Brilight Limited
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Bian Jin
    	
 
    
	
 
    	
 
    
	
Name: Bian Jin
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
CW One Smart Limited
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Aline Moulia
    	
 
    
	
 
    	
 
    
	
Name: Aline Moulia
    	
 
    
	
 
    	
 
    
	
Title: Authorized   Signatory
    	
 
    

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
Supar Inc.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Lingtao Yan
    	
 
    
	
 
    	
 
    
	
Name: Lingtao Yan
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    

 

 

SCHEDULE I

 

Part A List of Ordinary Shareholders

 

	
Ordinary
   Shareholders
    	
Class of Ordinary
   Subscription Shares
    	
Number of
   Ordinary
   Subscription Shares
    	
Ordinary
   Subscription
   Price
    
	
Happy Edu Inc.
    	
Class B   Ordinary Shares
    	
1,890,800,066
    	
US$
    	
1,890.81
    
	
Smart Changing   Inc.
    	
Class A   Ordinary Shares
    	
94,897,359
    	
US$
    	
94.90
    
	
TOTAL
    	
1,985,697,425
    	
US$
    	
1,985.71
    

 

 

SCHEDULE I

 

Part B List of Series A Investors

 

	
Series A Investor
    	
Number of Series A
   Subscription Shares
    	
Series A
   Subscription Price
    
	
Da Cong Limited
    	
224,750,413
    	
US$
    	
224.76
    
	
Guohe Limited
    	
116,506,032
    	
US$
    	
116.51
    
	
Teakbridge   Capital Limited
    	
34,193,735
    	
US$
    	
34.20
    
	
Juniperbridge   Capital Limited
    	
386,627,266
    	
US$
    	
386.63
    
	
Jiia Hong   Limited
    	
200,101,339
    	
US$
    	
200.11
    
	
Vicentsight   Limited
    	
64,310,946
    	
US$
    	
64.32
    
	
XINHUA GROUP   INVESTMENT LIMITED
    	
64,310,946
    	
US$
    	
64.32
    
	
Li Yeah Limited
    	
14,289,291
    	
US$
    	
14.29
    
	
Brilight Limited
    	
103,614,744
    	
US$
    	
103.62
    
	
CW One Smart   Limited
    	
316,858,851
    	
US$
    	
316.86
    
	
TOTAL
    	
1,525,563,563
    	
US$
    	
1,525.62
    

 

 

SCHEDULE I

 

Part C Particular of Sale and Purchase of Series A-1 Subscription Shares

 

	
Series A Investor
    	
Number of Series A-1
   Subscription Shares
    	
Series A-1
   Subscription Price
    
	
CW One Smart   Limited
    	
34,496,500
    	
US$
    	
34.50
    
	
Supar Inc.
    	
1,260,700
    	
US$
    	
1.27
    
	
TOTAL
    	
35,757,200
    	
US$
    	
35.77
    

 

 

SCHEDULE II

 

CAPITALIZATION TABLE IMMEDIATELY AFTER THE CLOSING

 

	
Shareholders
    	
Class of Shares
    	
Number of
   Shares
    	
Approx.
   Percentages
   (fully diluted 
   and as
   converted
   basis)
    
	
Happy Edu Inc.
    	
Class B   Ordinary Shares
    	
1,891,800,066
    	
49.3091%
    
	
Smart Changing   Inc.
    	
Class A   Ordinary Shares
    	
94,897,359
    	
2.4735%
    
	
ESOP
    	
Class A   Ordinary Shares
    	
288,599,939
    	
7.5223%
    
	
Subtotal
    	
Ordinary   Shares
    	
2,275,297,364
    	
59.3049%
    
	
 
    
	
Da Cong Limited
    	
Series A   Preferred Shares
    	
224,750,413
    	
5.8580%
    
	
Guohe Limited
    	
Series A   Preferred Shares
    	
116,506,032
    	
3.0367%
    
	
Teakbridge   Capital Limited
    	
Series A   Preferred Shares
    	
34,193,735
    	
0.8912%
    
	
Juniperbridge   Capital Limited
    	
Series A   Preferred Shares
    	
386,627,266
    	
10.0773%
    
	
Jiia Hong   Limited
    	
Series A   Preferred Shares
    	
200,101,339
    	
5.2156%
    
	
Vicentsight   Limited
    	
Series A   Preferred Shares
    	
64,310,946
    	
1.6762%
    
	
XINHUA GROUP   INVESTMENT LIMITED
    	
Series A   Preferred Shares
    	
64,310,946
    	
1.6762%
    
	
Li Yeah Limited
    	
Series A   Preferred Shares
    	
14,289,291
    	
0.3724%
    
	
Brilight Limited
    	
Series A   Preferred Shares
    	
103,614,744
    	
2.7007%
    
	
CW One Smart Limited
    	
Series A   Preferred Shares
    	
316,858,851
    	
8.2588%
    
	
Subtotal
    	
Series A   Preferred Shares
    	
1,525,563,563
    	
39.7631%
    
	
 
    
	
CW One Smart   Limited
    	
Series A-1   Preferred Shares
    	
34,496,500
    	
0.8991%
    
	
Supar Inc.
    	
Series A-1   Preferred Shares
    	
1,260,700
    	
0.0329%
    
	
Subtotal
    	
Series A-1   Preferred Shares
    	
35,757,200
    	
0.9320%
    
	
Total
    	
3,836,618,127
    	
100.00%
    

 

 

EXHIBIT A

 

Notices

 

If to the Company:

 

Attention: Zhang Xi

Address: 

 

If to the Ordinary Shareholders:

 

Happy Edu Inc.

Attention: Zhang Xi

Address: 

 

Smart Changing Inc.

Attention: Hu Guozhi

Address: 

 

If to the Series A Investors:

 

Da Cong Limited

Attention: Chen Gang

Address: 

 

Guohe Limited

Attention: Chen Guohe

Address: 

 

Teakbridge Capital Limited

Attention: Feng Juan

Address: 

 

Juniperbridge Capital Limited

Attention: Zheng Lina

Address: 

 

Jiia Hong Limited

Attention: Geng Xiaofei

Address: 

 

 

Vicentsight Limited

Attention: Wang Dongdong

Address: 

 

XINHUA GROUP INVESTMENT LIMITED

Attention: Wu Junbao

Address: 

 

Li Yeah Limited

Attention: Li Ye

Address: 

 

Brilight Limited

Attention: Bian Danyang

Address: 

 

CW One Smart Limited

Attention: Sha Ye

Address: 

 

Supar Inc.

Attention: Lingtao Yan

Address: 

 

 

Execution Version

 

SUPPLEMENTAL AGREEMENT TO SHARE PURCHASE

 

AGREEMENT

 

This Supplemental Agreement to the Share Purchase Agreement (this “Agreement”) is made and entered into as of April 21, 2017 by and between:

 

(1)                   One Smart Education Group Limited, an exempted company incorporated and existing under the laws of the Cayman Islands (the “Company”);

 

(2)                   CW One Smart Limited, a company incorporated and existing under the laws of the British Virgin Islands (“Chengwei”).

 

RECITALS

 

(A)                 The Company, Chengwei and other Series A Investors and Ordinary Shareholders entered into a share purchase agreement dated April 21, 2017 (the “Share Purchase Agreement”), pursuant to which and subject to the conditions thereunder, Chengwei shall subscribe for 316,858,851 shares of Series A Preferred Shares and 34,496,500 shares of Series A-1 Preferred Shares.

 

(B)                 Pursuant to Section 4.5 of the Share Purchase Agreement, any term of the Share Purchase Agreement with respect to the amount or payment condition of any Series A Subscription Price by any Series A Investor may be amended only with the written consent of such Series A Investor on one hand and the Company on the other.

 

(C)                 The Company and Chengwei desire to amend the terms of the Share Purchase Agreement with respect to the amount and the payment condition of the Series A Subscription Price payable by Chengwei.

 

And therefore, in consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.              Certain Defined Terms. Capitalized terms used in this Agreement without being specifically defined in this Agreement shall have the meanings assigned to them in the Share Purchase Agreement.

 

2.              Amendments.

 

2.1                     A new Section 1.6 (c) shall be inserted into the Share Purchase Agreement as follows:

 

“Notwithstanding anything to the contrary in this Agreement, Chengwei shall or shall cause its designated person to pay by wire transfer of immediately available funds its Series A Subscription Price of (i) US$316.86 at the Closing, plus (ii) USD equivalent of RMB 100,600,587 on the date and to an account as determined pursuant to a restructuring agreement  entered into by Chengwei, the Company and other parties thereto on April 21, 2017 (“Restructuring Agreement”).”

 

 

2.2                     The “Series A Subscription Price” opposite Chengwei’s name in the third column of the table in Part B of Schedule I of the Share Purchase Agreement shall be deleted in its entirety and replaced by the subscription price opposite Chengwei’s name in the third column of the table in Exhibit A of this Agreement, and the total amount of the “Series A Subscription Price” for all Series A Investors shall be increased accordingly.

 

3.              EFFECT OF AMENDMENT

 

3.1                     Except as expressly amended hereby, all of the terms and provisions of the Share Purchase Agreement shall remain in full force and effect.

 

3.2                     On and after the date of this Agreement, each reference in the Share Purchase Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import, and each reference to the Share Purchase Agreement by “thereunder”, “thereof” or words of like import in any document, shall mean and be a reference to the Share Purchase Agreement, as amended by this Agreement.

 

4.              GOVERNING LAW

 

4.1                     This Agreement shall be governed in all respects by the laws of Hong Kong, without giving effect to any principles of conflict of laws.

 

4.2                     The provisions of Section 4.11 (Dispute Resolution) of the Share Purchase Agreement shall apply to this Agreement mutatis mutandis as if set out in full herein.

 

5.              MISCELLANEOUS

 

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile and e-mailed copies of signatures shall be deemed to be originals for purposes of the effectiveness of this Agreement.

 

[remainder of this page intentionally LEFT blank]

 

2

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
One Smart Education   Group Limited
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Zhang Xi
    	
 
    
	
 
    	
 
    
	
Name: Zhang Xi
    	
 
    
	
 
    	
 
    
	
Title: Director
    	
 
    
			

 

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the date first above written.

 

	
CW One Smart Limited
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Aline Moulia
    	
 
    
	
 
    	
 
    
	
Name: Aline Moulia
    	
 
    
	
 
    	
 
    
	
Title: Authorized   Signatory
    	
 
    
			

 

 

Exhibit A

 

	
Series A Investor
    	
Number of Series A 
   Subscription Shares
    	
Series A Subscription 
   Price
    
	
Chengwei
    	
316,858,851
    	
US$316.86 at Closing;   and USD equivalent of RMB100,600,587 pursuant to the Restructuring Agreement

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