Document:

Exhibit 10.63

 

Share Pledge
Agreement

 

Between

 

Beijing Ambow
Chuangying Education Technology Co., Ltd.

 

And

 

Xuejun Xie
& Jianguo Xue

 

June 29, 2017

 

     

     

    

 

This
Share Pledge Agreement (this “Agreement”) is entered into by and among the following parties on June 29, 2017:
 

 

Pledgee: Beijing Ambow Chuangying Education
Technology Co., Ltd.  

Legal Representative:
Jiaren Chen 

Principal Office:
Room A1803, 18th Floor,, No.18 North Taipingzhuang Road, Haidian District, Beijing 

 

Pledgor 1:
Xuejun Xie  

ID number: [ 510102196610258005 ]

 

Pledgor 2:
Jianguo Xue  

ID number: [ 632121196609190013 ]

 

(Pledgor 1
and Pledgor 2 are collectively referred to as “Pledgors”) 

 

WHEREAS: 

 

(1)      Beijing
Ambow Chuangying Education Technology Co., Ltd. entered into Technology Service Agreement with Beijing Ambow Shida Education Technology
Co., Ltd. (“Ambow Shida”) and the companies and schools directly or wholly owned or controlled by Ambow Shida (“Subsidiaries”)
respectively on June 29, 2017;  

 

(2)      Pledgor 1 and Pledgor 2 are shareholders
of Ambow Shida, holding 90 % and 10 % of the equity interest in Ambow Shida respectively; 

 

(3)      Pledgors agree to pledge all of their
equity interests in Ambow Shida to Pledgee as a security for Ambow Shida and its Subsidiaries’ performance of their obligations
under the Technology Service Agreement.  

 

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

 

1.   
    Definitions  

 

1.1      Unless
otherwise specified herein, all of the following terms shall have the meanings defined below. 

 

1.1.1   “Secured
Debt” means the payment obligation and other relevant obligations to Pledgee assumed by Ambow Shida and its Subsidiaries
under the aforementioned Technology Service Agreement, liquidated damage and other relevant costs, and all costs (including attorney
fees) and other amounts paid by Pledgee to realize Pledgee’s rights under Technology Service Agreement in the event that
Ambow Shida and its Subsidiaries commit a breach. If Ambow Shida controls new Subsidiaries by means of acquisition or incorporation
or otherwise in the future and such new Subsidiaries enter into a new Technology Service Agreement with Pledgee, then such new
Subsidiaries’ obligations under the new Technology Service Agreement will be automatically included in the “Secured
Debt” herein.  

 

     

     

    

 

1.1.2   “Pledged
Equity” means the 100% equity owned by Pledgors and all rights relating to such equity. With Pledgee’s prior consent,
Pledgors may increase the capital of the company. The increment in the company’s registered capital as a result of Pledgors’
additional contributions shall also be deemed part of the pledge. 

 

2.        Equity
Pledge  

 

2.1      Each Pledgor
hereby pledges the Pledged Equity to Pledgee (“Pledge”) as a security for the full discharge of the Secured Debt. 

 

2.2      Pledgors
undertake to Pledgee that Pledgors’ execution of this Agreement and performance of the obligations hereunder have been approved
by the other shareholders of Ambow Shida, and they will cause Ambow Shida to record the equity pledge hereunder on the shareholders’
register of Ambow Shida. Pledgors and Ambow Shida shall deliver the shareholders’ register recording the equity pledge hereunder
to Pledgee for safekeeping upon execution of this Agreement;  

 

2.3      The Parties
agree to register or cause to register the Pledge hereunder with the administrative authorities for industry and commerce in the
place where Ambow Shida is registered. The Pledge hereunder is established at the time when the Pledge is registered with the administrative
authorities for industry and commerce in the place where Ambow Shida is registered. Pledgors, Pledgee and the company shall promptly
register the Pledge hereunder with the administrative authorities for industry and commerce upon execution of this Agreement. The
Parties also acknowledge that, upon execution of this Agreement, the Parties will not raise any question or objection to the effectiveness
of this Agreement because of failure to register the Pledge hereunder with the administrative authorities for industry and commerce
in the place where Ambow Shida is registered.  

 

3.        Scope
of Security  

 

3.1      The Pledged
Equity hereunder offers security for:  

 

3.1.1   The
Secured Debt defined in Section 1.1.1 hereof; and  

 

3.1.2   The
costs paid by Pledgee to realize the pledge to which Pledgee is entitled hereunder. 

 

4.        Term
of Pledge  

 

4.1      The term
of valid existence of the pledge to which Pledgee is entitled hereunder is from the effective date of this Agreement to the date
all Secured Debt is fully discharged (“Term of Pledge”). Pledgee shall exercise the pledge hereunder within the limitation
of action for the Secured Debt.  

 

5.        Exercise
of Pledge  

 

5.1      If (a)
Ambow Shida and its Subsidiaries fail to perform their payment obligation or other related obligations to Pledgee in accordance
with the provisions of Technology Service Agreement, or (b) Pledgors breach their duties or obligations hereunder, Pledgee shall
have the right to exercise the pledge in any manner at any time it deems appropriate to the extent permitted by applicable laws
during the Term of Pledge, including without limitation:  

 

     

     

    

 

5.1.1   To negotiate
with Pledgors to discharge the Secured Debt with the Pledged Equity at a discount; 

 

5.1.2   To sell
off the Pledged Equity and use the proceeds thereof to discharge the Secured Debt; 

 

5.1.3   To retain
a relevant agency to auction all or part of the Pledged Equity; and/or 

 

5.1.4   To otherwise
dispose of the Pledged Equity appropriately to the extent permitted by applicable laws. 

 

5.2      In the
course of Pledgee’s disposal of the Pledged Equity as specified in the preceding section, Pledgee shall have the right to
take any actions permitted by law to realize any of its rights hereunder. 

 

5.3      As requested
by Pledgee, Pledgors shall assist Pledgee in obtaining all necessary approvals or consents in connection with Pledgee’s realization
of its rights to debt and pledge.  

 

5.4      All amounts
received due to Pledgee’s exercise of its pledge shall be used in the following order of priority subject to the other provisions
hereof:  

 

5.4.1   First,
such amounts shall be used to pay all taxes and costs incurred by Pledgee because of its exercise of the pledge and/or other rights
hereunder;  

 

5.4.2   Second,
such amounts shall be used by Pledgee to discharge the Secured Debt according to law; 

 

5.4.3   If there
is any balance after the discharge of the Secured Debt, such balance shall be paid to Pledgors or anyone who is entitled to such
balance (without interest).  

 

6.        Termination
of Pledge  

 

6.1      The pledge
shall be terminated automatically upon termination of Technology Service Agreement and full discharge of the Secured Debt. In such
case, as requested by Pledgors, Pledgee shall sign a written document to terminate the equity pledge created hereunder and submit
such document to Pledgors, or assist Pledgors in handling other procedures for terminating the equity pledge hereunder. 

 

6.2      Subject
to the provisions in the preceding paragraph, the equity pledge hereunder shall not be terminated without Pledgee’s prior
written consent.  

 

7.        Nature
of Security  

 

7.1      The security
created hereunder shall not be affected by any other security held by Pledgee for the Secured Debt, and shall not affect the effectiveness
of any other security.  

 

7.2      The security
created hereunder and Pledgee’s rights hereunder shall not be terminated or affected due to the following circumstances:
 

 

     

     

    

 

7.2.1   Any
grace, termination or relief granted by Pledgee in connection with any person’s debt; 

 

7.2.2   Any
amendment, modification or supplement to the Technology Service Agreement; 

 

7.2.3   Any
disposal, modification or termination of any other security in connection with the Secured Debt; 

 

7.2.4   Pledgee
reaches a settlement with any person in connection with any claims of such person; 

 

7.2.5   Any
delay, act or omission of Pledgee in the exercise of its rights; 

 

7.2.6   Any
other event that may affect Pledgors’ obligations hereunder. 

 

8.        Special
Provisions  

 

8.1      Without
Pledgee’s prior written consent, Pledgors shall not transfer any of its rights or obligations hereunder to any other party.
 

 

8.2      Pledgee
shall have the right to transfer to any third party any of its rights or obligations hereunder and any of its rights or obligations
under other agreements contemplated by this Agreement without Pledgor’s prior consent. In such case, Pledgors must unconditionally
cooperate with Pledgee in handling the procedures for the transfer of relevant rights and obligations, including without limitation
signing an agreement on the change of the relevant contractual party and re-registering the equity pledge with the administrative
authorities for industry and commerce.  

 

8.3      Upon effectiveness
of this Agreement, unless Pledgee makes a written decision to the contrary and notify Pledgors of such decision, Pledgors shall
be obligated to continue to observe legal requirements relating to the Pledged Equity and perform all rights and obligations in
connection with the Pledged Equity, and perform the due care and good faith obligations that a shareholder shall perform. 

 

8.4      Pledgors
shall promptly notify Pledgee of any event that may affect the Pledged Equity or the value thereof, or that may impede, prejudice
or delay Pledgee’s performance of its rights as a shareholder of Ambow Shida. Each of Pledgors hereby agrees to sign a power
of attorney (“Attorney-in-fact”) on the even date herewith, appointing Beijing Ambow Chuangying Education Technology
Co., Ltd. as his or her initial attorney-in-fact to: (i) exercise all voting rights it enjoys as a shareholder of Ambow Shida ,
and (ii) sign on behalf of such Pledgor any resolutions adopted by the shareholders’ meetings of Ambow Shida , and any other
documents that are related to such Pledgor’s performance of his or her rights as a shareholder of Ambow Shida . The attorney-in-fact
shall perform its duties in good faith, aiming to maximize the value of the Pledged Equity hereunder, and its acts shall be in
compliance with applicable Chinese laws in all respects. The form of the initial Power of Attorney to be signed by each Pledgor
is set forth in Appendix 1 attached hereto.  

 

8.5      During
the term of pledge, Pledgee shall have the right to collect any yield on the Pledged Equity. 

 

8.6      Without
Pledgee’s prior written consent, each Pledgor shall not perform any of the following acts: 

 

8.6.1   Making
a proposal to amend the articles of association of Ambow Shida or causing the making of such proposal; increasing or reducing its
registered capital, or otherwise change its registered capital structure; 

 

     

     

    

 

8.6.2   Creating
any further security, encumbrances and any third party’s rights on the Pledged Equity in addition to the pledge created hereunder;
 

 

8.6.3   Performing
any act that may prejudice any rights of Pledgee hereunder, or any act that may materially affect the assets, business and/or operations
of Ambow Shida ;  

 

8.6.4   Distributing
dividends to the shareholders in any form; however, upon Pledgee’s request, Pledgors shall immediately distribute all of
its distributable profits to the shareholders.  

 

8.7      Without
Pledgee’s prior written consent, each Pledgor shall not transfer or dispose of the Pledged Equity in any way. 

 

8.8      Pledgors
agree to take other necessary actions and enter into other necessary agreements to give effect to the provisions hereof and other
agreements contemplated hereby.  

 

9.    
   Representations, Undertakings and Warranties  

 

9.1      Each Pledgor
hereby represents, undertakes and warrants to Pledgee that:  

 

9.1.1   Each
Pledgor has the lawful eligibility and necessary authority to enter into this Agreement and has the capacity to fully perform any
of his or her rights hereunder;  

 

9.1.2   Each
Pledgor has the sole ownership of the Pledged Equity and has lawful, complete and full ownership of the his or her pledged equity
hereunder;  

 

9.1.3   Except
the pledge created hereunder, each Pledgor has not created or allowed the creation of any security rights or any third party’s
rights or encumbrances on the Pledged Equity without Pledgee’s prior written consent; there is no dispute over the ownership
of such Pledged Equity, which is not subject to any lien or other legal proceedings and can be used for pledge or transfer in accordance
with applicable laws;  

 

9.1.4   There
is no existing, pending or threat of legal proceedings, arbitrations or administrative proceedings against the Pledged Equity;
 

 

9.1.5   Pledgor’s
execution of this Agreement, exercise of his or her rights hereunder, or performance of his or her obligations hereunder will not
violate any agreements, contracts or laws and regulations applicable to Pledgor and his or her property; 

 

9.1.6   Upon
execution of this Agreement, Pledgors shall promptly register the equity pledge hereunder with the administrative authorities for
industry and commerce to cause the effective creation of the equity pledge; the pledge created hereunder shall constitute valid
security for the secured Debt after the registration procedures are completed, which can be executed on its terms; 

 

9.1.7   All
documents delivered by Pledgors to Pledgee in connection with this Agreement are true, complete and correct in all material respects,
and there is no omission that may cause any information therein to become incorrect or misleading in any material respect; 

 

     

     

    

 

9.1.8   This
Agreement shall constitute a legal, valid and binding obligation of Pledgors, and may be enforced in accordance with the application
of Pledgee to competent authorities under this Agreement;  

 

9.1.9   From
the date of this Agreement to the expiration of the term of pledge, Pledgors shall not transfer or dispose of any part or all of
the interests in the Pledged Equity to any third party without Pledgee’s prior written consent; 

 

9.2      Pledgee
hereby represents, undertakes and warrants to Pledgors that:  

 

9.2.1   Pledgee
is a limited liability company duly established and validly existing, and has the authority to enter into this Agreement and is
able to perform its obligations hereunder;  

 

9.2.2   Pledgee
has obtained all authorities and consents necessary for the execution and performance of this Agreement. 

 

10.     Liability
for Breach  

 

10.1    Either
Party’s direct or indirect violation of any provisions hereof or failure to assume its obligations hereunder or failure to
assume such obligations in a timely and adequate manner shall constitute breach of this Agreement. The non-breaching Party (“Non-Breaching
Party”) shall have the right to require the breaching Party (“Breaching Party”) by written notice to redress
its breach and take adequate, effective and timely measures to eliminate the consequences of such breach, and indemnify against
the losses incurred by the Non-Breaching Party due to the breach of the Breaching Party. 

 

10.2    After
the occurrence of the breach, if, according to the reasonable and objective judgment of the Non-Breaching Party, such breach has
made it impossible or unfair for the Non-Breaching Party to perform its relevant obligations hereunder, then the Non-Breaching
Party shall have the right to notify the Breaching Party in writing that the Non-Breaching Party will suspend the performance of
its relevant obligations hereunder until the Breaching Party ceases such breach and takes adequate, effective and timely measures
to eliminate the consequences of such breach, and indemnify against the losses incurred by Non-Breaching Party due to the breach.
 

 

10.3    The losses
incurred by the Non-Breaching Party which shall be indemnified against by the Breaching Party due to its breach are the direct
economic losses incurred by the Non-Breaching Party due to the Breaching Party’s breach and any expectable indirect losses
and additional costs, including without limitation attorney fees, litigation and arbitration costs, financial costs and travel
expenses, etc.  

 

11.     Force
Majeure  

 

11.1    “Force
Majeure” means any event that is beyond the reasonable control of any or all Parties hereto, unable to be foreseen or unable
to be overcome even foreseen, which impedes, affects or delays any party’s performance of all or part of its obligations
under this Agreement. Such event includes without limitation any government act, act of God, war, hacker attack or any other similar
event.  

 

     

     

    

 

11.2    The Party
affected by a Force Majeure event may suspend the performance of its relevant obligations hereunder that cannot be performed due
to the Force Majeure until the effect of such Force Majeure event is eliminated, and shall not be held liable for such suspension.
However, such Party shall use its best endeavor to overcome such event and mitigate its negative effect. 

 

11.3    The Party
affected by a Force Majeure event shall provide the other Parties with a legitimate certificate issued by a notary public (or other
proper agency) in the place where such event occurs to evidence the occurrence of such Force Majeure event. If such Party cannot
provide such certificate, the other Parties may hold such Party liable for breach in accordance with the provisions hereof. 

 

12.     Effectiveness
and Termination  

 

12.1    This
Agreement shall come into effect after it has been duly executed by Pledgors and Pledgee. The pledge hereunder is established after
the registration specified in Section 2.3 is completed.  

 

12.2    This
Agreement shall be terminated under any of the following circumstances: 

 

12.2.1 in
accordance with Section 6 hereof;  

 

12.2.2 by
mutual agreement of Pledgee and Pledgors;  

 

12.2.3 by
the consent of Pledgee.  

 

12.3    The termination
of this Agreement shall not affect the Parties’ rights and obligations arising hereunder prior to the expiration date of
this Agreement.  

 

13.     Dispute
Resolution  

 

13.1    If any
dispute arises between the Parties in connection with the interpretation and performance of the provisions hereunder, the Parties
shall resolve such dispute in good faith through discussions. If no agreement can be reached within sixty (60) days after one Party
receives the notice of the other Party requesting the beginning of discussions or as otherwise agreed, either Party shall have
the right to submit such dispute to the China International Economic and Trade Arbitration Commission for arbitration in accordance
with its then effective rules. The arbitration shall be held in Beijing. The award of the arbitration shall be final and binding
upon the Parties.  

 

13.2    If any
dispute arises in connection with the interpretation and performance of this Agreement, or such dispute is under arbitration, either
Party shall continue to have the rights hereunder other than those in dispute and perform the obligations hereunder other than
those in dispute.  

 

13.3    The conclusion,
effectiveness, enforcement and interpretation of this Agreement shall be governed by the Chinese laws. 

 

14.     Miscellaneous
 

 

14.1    The headings
herein are for convenience only, and shall not affect the interpretation of any provisions hereof. 

 

     

     

    

 

14.2    The Parties
may amend and supplement this Agreement by written agreement. Any amendments or supplements executed by the Parties, if any, are
part of this Agreement, and shall have the same force and effect as this Agreement. 

 

14.3    If any
provision herein becomes partly or wholly invalid or unenforceable for violation of laws or government regulations or other reasons,
then the part of such provision that is affected shall be deemed as deleted. However, the deletion of such part of such provision
shall not affect the legal effect of other parts of such provision or the other provisions herein. The Parties shall cease to execute
such invalid or unenforceable provision, and modify such provision so that it has the closest intent to the original provision
and becomes valid and enforceable in connection with such facts and circumstances. 

 

14.4    Unless
otherwise provided herein, either Party’s failure to exercise or delay in exercising any of its rights or powers hereunder
shall not be construed as a waiver of such rights or powers. Any single or partial exercise of any rights or powers shall not preclude
the exercise of other rights or powers.  

 

14.5    This
Agreement shall be binding upon the Parties and their respective successors and permitted assigns. Pledgee shall have the right
to transfer to any other third party the rights hereunder and other agreements contemplated hereby at its sole discretion without
Pledgors’ consent.  

 

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

 

Pledgee:

 

Beijing Ambow Chuangying Education Technology Co., Ltd.

 

	Authorized Representative:  	
        /s/
	 

 

	
        Pledgors:
	 	 
	 	 	 
	Signature: 	/s/	 
	 	
        Xuejun Xie
	 
	 	 	 
	Signature: 	/s/	 
	 	
        Jianguo XueExhibit 10.64

 

Call
Option Agreement

 

Between

 

Beijing
Ambow Chuangying Education Technology Co., Ltd. And

 

Xuejun
Xie and Jianguo Xue

 

June
29, 2017

 

     

     

    

 

Call Option Agreement

 

This Call Option
Agreement (this “Agreement”) is entered into by the following Parties on June 29, 2017: 

 

1.       Beijing
Ambow Chuangying Education Technology Co., Ltd., a limited liability company duly established and existing under the Chinese laws,
with its registered address Room A1803,18th Floor, No.18 North Taipingzhuang Road, Haidian District, Beijing (hereinafter referred
to as “Party A”); and  

 

2.       Xuejun
Xie, a Chinese citizen; Jianguo Xue, a Chinese citizen (each hereinafter referred to as “Party B”, and collectively,
“Party B”);  

 

WHEREAS 

 

A.      Party B
owns 100 % equity interest in Beijing Ambow Shida Education Technology Co., Ltd. (“Ambow Shida”); 

 

B.      Party B
is willing to transfer their equity interests in Ambow Shida to Party A (or its affiliate or assign) to the extent permitted by
the Chinese laws and if such transfer is allowed under the Chinese laws. 

 

Now therefore,
through good faith consultations, the Parties reach an agreement on the following terms: 

 

Section 1
Definitions  

 

Unless otherwise
specified in this Agreement, the following terms shall have the following meanings: 

 

 

	Call Option 	 	The right granted to Party A and/or any third party designated by Party A to subscribe for all or part of the equity interests held by Party B in Ambow Shida under the terms and conditions of this Agreement.
	 	 	 
	China	 	The People’s Republic of China (excluding Hong Kong, Macau and Taiwan for the purposes of this Agreement).
	 	 	 
	Chinese laws	 	The laws, regulations and decisions made and promulgated by various Chinese legislative authorities; the administrative rules, regulations, measures and other legally binding official documents made and promulgated by various Chinese administrative authorities.
	 	 	 
	Approvals	 	The approvals, consents, permits and authorizations made and/or issued by relevant Chinese administrative authorities under the Chinese laws. 
	 	 	 
	Equity in Ambow Shida	 	The equity interests held lawfully by Party B in Ambow Shida. The ratio of such equity is equivalent to the ratio of Party B’s capital contributions to Ambow Shida to Ambow Shida ’s registered capital.
	 	 	 
	Loan Agreement	 	The loan agreement and any amendments thereto entered into among Party A and Party B. 

 

     

     

    

 

Section 2
Grant of Call Option  

 

2.1      Party
B hereby irrevocably and exclusively grant Party A the Call Option, the right that allows Party A and any third party designated
by Party A to subscribe for all or part of the equity interest held by Party B in Ambow Shida . 

 

2.2      To the
extent permitted by the Chinese laws, Party A and/or any third party designated by Party A shall have the right to exercise the
Call Option at any time during the term of this Agreement, to obtain necessary government approvals and complete required registration
procedures (if required, including the evaluation procedures), and to obtain and maintain the Equity in Ambow Shida. Party A and/or
any third party designated by Party A shall become the lawful holder of the Equity in Ambow Shida, and shall have the right to
obtain all shareholder rights according to its shareholding ratio. 

 

2.3      Without
Party A’s written consent, Party B shall not grant to any third party any rights, senior to or on a parity with Call Option.
 

 

Section 3
Consideration for the Call Option  

 

To the fullest
extent permitted by the Chinese laws, the transfer price of the Equity in Ambow Shida (or any part thereof) shall be equal to Party
B’s initial contribution to the registered capital of Ambow Shida in exchange for such Equity in Ambow Shida (or any part
thereof) (“Contribution to Registered Capital”). The Parties agree that, to the fullest extent permitted by the Chinese
laws, in connection with the transfer of any or all Equity in Ambow Shida to Party A and/or any third party designated by Party
A, Party A shall have the right to offset the debt Party B owes to Party A against the transfer price for such Equity, and Party
A and any third party designated by Party A shall not be required to make any cash payment to Party B separately. If the Equity
in Ambow Shida is required to be valuated under relevant Chinese laws, or there are any other provisions for the transfer price
for such Equity, then such transfer price shall be the lowest price permitted under relevant Chinese laws. 

 

Section 4
Exercise of the Call Option  

 

4.1      Party
A and/or any third party designated by Party A shall have the right to exercise the Call Option in any way permitted by law at
any time within the term of the Call Option upon effectiveness of this Agreement. 

 

4.2      During
the term of this Agreement, Party A and/or any third party designated by Party A may exercise the Call Option in whole or part
in order to obtain any or all of the equity interest for which it has the right to subscribe hereunder at one or more times. 

 

4.3      Party
A shall exercise the Call Option by delivering a subscription notice to Party B (see the form and substance of such notice in Appendix
1). Party B shall transfer to Party A and/or any third party designated by Party A the corresponding Equity in Ambow Shida as specified
in the subscription notice.  

 

     

     

    

 

4.4      Party
B shall complete all procedures required for Party A and/or any third party designated by Party A to obtain the Equity in Ambow
Shida and become a lawful shareholder of Ambow Shida within sixty (60) days after Party A and/or any third party designated by
Party A sends the subscription notice for the exercise of the Call Option, including without limitation, adopting any necessary
resolution, providing or causing or facilitating Ambow Shida to provide all necessary documents, and causing and helping Ambow
Shida to obtain approvals from competent government authorities for the change of equity and handle all relevant procedures in
the event that Ambow Shida is converted to a foreign-invested company due to the exercise of the Call Option. 

 

Section 5
Representations and Warranties  

 

5.1      Party
B represents and warrants to Party A and/or any third party designated by Party A (as the case may be) as follows in connection
with the Call Option as of the date of this Agreement and at the time when Party A and/or any third party designated by Party A
exercises the Call Option hereunder:  

 

(1)      Ambow
Shanhai is a limited liability company duly established and existing under the Chinese laws; 

 

(2)      Party
B has contributed the capital for his or her equity interest in Ambow Shida in full. Party A and/or any third party designated
by Party A shall acquire such equity interest without any capital contribution to Ambow Shida in accordance with this Agreement;
 

 

(3)      Except
the pledge granted to Party A by the share pledge agreement entered into by Party A and Party B on              ,
2017, Party B has not created or allowed any option, call option, pledge, or other equity interest or security interest on Equity
in Ambow Shida without Party A’s written consent;  

 

(4)      Party
B hereby agrees that it shall irrevocably waive the preemptive right to purchase the Equity in Ambow Shida to which it is entitled
under the Chinese laws and the bylaws of Ambow Shida, and allow Party A and/or any third party designated by Party A to exercise
the Call Option;  

 

(5)      Without
Party A’s written consent, Party B shall not transfer the Equity in Ambow Shida to any third party; 

 

(6)      Without
Party A’s written consent, Party B shall not supplement, alter or modify the Articles of Association of Ambow Shida in any
form, shall not increase or decrease its registered capital, or otherwise change the structure of its registered capital; 

 

(7)      During
the term of this Agreement, Party B and Ambow Shida have not engaged in and shall not engage in any act or omission that may cause
any losses to Party A or cause any reduction in value of the Equity in Ambow Shida; 

 

(8)      Without
Party A’s written consent, Party B shall not incur, assume, guarantee or allow the existence of any debt other than the debt
that (i) arises in the normal or routine course of business rather than out of borrowing; and (ii) has been disclosed to and approved
in writing by Party A;  

 

(9)      Ambow
Shida has the right to operate all business activities within the approved business scope which it is operating or it expects to
operate in the future; and  

 

     

     

    

 

(10)    Party
B shall not have the right to early terminate this Agreement. 

 

5.2      Party
A represents and warrants to Party B in connection with the execution of this Agreement as follows: 

 

(1)      Party
A is a limited liability company duly established and existing under the Chinese laws; 

 

(2)      The execution
and performance of this Agreement will not constitute Party A’s violation of its obligations under any legally binding documents
entered into with any third party, or constitute a violation of any prohibition or ruling of any administrative authorities, arbitration
agencies or judicial organs.  

 

Section 6
Liability for Breach  

 

6.1      Under any
of the following circumstances, Party B shall be deemed to breach the Agreement: 

 

(1)      Any representations
or warranties made by Party B are not true or correct;  

 

(2)      Party
B transfers the Equity in Ambow Shida to any company or individual other than Party A and/or any third party designated by Party
A without Party A’s prior written consent;  

 

(3)      Party
B fails to promptly handle or facilitate Ambow Shida to handle relevant procedures upon receipt of the subscription notice from
Party A and/or any third party designated by Party A in accordance with this Agreement, which would cause Party A and/or any third
party designated by Party A to fail to acquire the Equity of Ambow Shida ; 

 

(4)      Party
B attempts to terminate this Agreement without Party A’s consent; 

 

(5)      Party
B violates any other provisions hereof.  

 

If Party B breaches
the Agreement, it shall indemnify Party A against all direct economic losses, any foreseeable indirect losses and any expenses
incurred by Party A for such breach, including without limitation attorney fees, litigation and arbitration fees, financial and
travel expenses.  

 

Section 7
Term  

 

7.1      This Agreement
shall come into effect as of the date when the authorized representatives of the Parties duly sign the Agreement, and shall remain
effective until the termination of the Loan Agreement.  

 

7.2      Unless
otherwise provided herein, Party A shall have the right to early terminate this Agreement upon twenty (20) days’ prior notice,
but Party B shall not early terminate this Agreement.  

 

     

     

    

 

Section 8
Force Majeure  

 

8.1      Force
Majeure means any event (i) that is beyond the control of either or both Parties hereto; (ii) that cannot be foreseen or cannot
be overcome even foreseeable; and (iii) that occurs after the date of this Agreement and prevent either Party hereto from performing
this Agreement in whole or part. Force Majeure includes without limitation the occurrence of explosion, fire, flood, earthquake
and other acts of God and war, civil disorder, governmental act of sovereignty, etc. 

 

8.2      The Party
affected by any Force Majeure event may suspend the performance of relevant obligations that cannot be performed due to Force Majeure
until the effect of such Force Majeure event is eliminated, and shall not be held liable for such suspension. However, such Party
shall use its best endeavors to overcome such event and reduce its adverse effect. 

 

8.3      The Party
affected by any Force Majeure event shall provide the other Party with a legitimate certificate issued by a notary public (or any
other proper authorities) in the place where such event occurs to evidence the Force Majeure event; if such Party cannot provide
such certificate, the other Party may hold such Party liable for breach of the Agreement in accordance with the provisions hereof.
 

 

Section 9
Governing Law  

 

The conclusion,
effectiveness, interpretation, performance, enforcement and dispute resolution of this Agreement shall be governed by the laws
of the People’s Republic of China.  

 

Section 10
Dispute Resolution  

 

10.1    All disputes
arising out of or in connection with this Agreement shall be settled by the Parties through good faith consultations. If no agreement
can be reached through consultations within sixty (60) days after one Party receives a notice from other Party requesting the beginning
of such consultations or as otherwise agreed by the Parties, either Party shall have the right to submit relevant disputes to the
China International Economic and Trade Arbitration Commission for arbitration in accordance with its then effective arbitration
rules. The arbitration shall be held in Beijing. The award of the arbitration shall be final and binding on both Parties. 

 

10.2    The arbitration
costs shall be borne in accordance with the award specified in Section 10.1 above. 

 

10.3    While
any disputes exist between the Parties, the Parties shall continue to perform duties and obligations without any dispute. 

 

Section 11
Miscellaneous  

 

11.1    No amendment,
modification, addition or deletion made to this Agreement shall become effective unless the Parties sign a written document by
mutual agreement.  

 

11.2    The invalidity,
ineffectiveness and unenforceability of any provisions hereof shall not affect or prejudice the other provisions’ validity,
effectiveness and enforceability. However, the Parties shall also cease to perform such invalid, ineffective and unenforceable
provisions, and only modify such provisions to the extent the modified provisions have the closest intent to the original provisions
so that they are valid, effective and enforceable under such specific facts and circumstances. 

 

     

     

    

 

11.3    This
Agreement shall be effective to and binding upon both Parties and their respective successors or permitted assigns. Party A shall
have the right to transfer its rights under this Agreement and other agreements contemplated herein at its sole discretion to any
third party without Party B’s consent.  

 

IN WITNESS WHEREOF,
the duly authorized representatives of Party A and Party B have executed this Agreement on the date first above written. 

 

Beijing Ambow Chuangying Education Technology Co., Ltd.

 

	Authorized Representative: 	 	 
	Signature:	/s/	 

 

	Xuejun Xie	 
	 	 	 
	Signature: 	/s/	 
	 	 	 
	Jianguo Xue	 
	 	 	 
	Signature:	/s/	 

 

     

     

    

 

Appendix 1

 

Subscription Notice

 

Dear Sir: 

 

This is to notify
you that, in accordance with the Call Option Agreement (“Agreement”) entered into by you and Beijing Ambow Chuangying
Education Technology Co., Ltd. on              , 2017, we decide to exercise the call
option under such Agreement for [all] or [part] of the equity interest in Beijing Ambow Shida Education Technology Co., Ltd. (and
appoint [                  ] as
the transferee of the target equity interest).  

 

	Authorized Representative:	 	 
	Title:	 	 
	Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}]]