Document:

Exhibit 10.59

 

Call Option
Agreement

 

Between

 

Beijing Ambow
Shengying Education Technology Co., Ltd. And

 

Xuejun Xie
and Gang Huang

 

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 Shengying Education
Technology Co., Ltd., a limited liability company duly established and existing under the Chinese laws, with its registered address
Room A1805,18th Floor, No.18 North Taipingzhuang Road, Haidian District, Beijing (hereinafter referred to as “Party A”);
and  

 

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

 

WHEREAS 

 

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

 

B.      Party B is willing to transfer
their equity interests in Ambow Sihua 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 Sihua 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 Sihua   	 	The equity interests held lawfully by Party B in Ambow Sihua. The ratio of such equity is equivalent to the ratio of Party B’s capital contributions to Ambow Sihua to Ambow Sihua ’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 Sihua. 

 

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 Sihua. Party A and/or any third
party designated by Party A shall become the lawful holder of the Equity in Ambow Sihua, 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 Sihua (or any part thereof) shall be equal to Party
B’s initial contribution to the registered capital of Ambow Sihua in exchange for such Equity in Ambow Sihua (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 Sihua 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 Sihua 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 Sihua 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 Sihua and become a lawful
shareholder of Ambow Sihua 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 Sihua to provide all necessary documents, and causing and helping Ambow Sihua to obtain approvals from competent
government authorities for the change of equity and handle all relevant procedures in the event that Ambow Sihua 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 Sihua in full. Party A and/or any third party designated by Party A shall acquire
such equity interest without any capital contribution to Ambow Sihua 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 Sihua 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 Sihua to which it is entitled under the Chinese
laws and the bylaws of Ambow Sihua, 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 Sihua 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 Sihua 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 Sihua 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 Sihua;  

 

(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 Sihua 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 Sihua 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 Sihua 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 Sihua;  

 

(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 Shengying Education Technology Co., Ltd.

 

	Authorized Representative: 	 	 
	Signature:	/s/	 

 

	Xuejun Xie	 
	 	 	 
	Signature:  	/s/	 
	 	 	 
	Gang Huang	 
	 	 	 
	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 Shengying
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 Ambow Sihua Education and
Technology Co., Ltd. (and appoint [                 ]
as the transferee of the target equity interest).  

 

	Authorized Representative: 	 	 
	Title: 	 	 
	Date:Exhibit 10.60

 

Power of Attorney

 

Shareholder: Gang Huang (“Pledgor”) 
_

 

Attorney-in-fact: Beijing Ambow Shengying Education Technology
Co., Ltd. (“Ambow Shengying”)  _

 

In accordance with the Share Pledge Agreement
executed by Xiaogang Feng on June 29, 2017 (“Pledge Agreement”), by executing this power of attorney (the “POA”),
the Pledgor hereby appoints Ambow Shengying as his attorney-in-fact (“Attorney-in-fact”) to (i) attend the shareholder
meetings of Ambow Sihua Education and Technology Co., Ltd. (“Ambow Sihua”) and exercise all voting rights to which
the Pledgor is entitled as a shareholder of Ambow Sihua, including without limitation selling, transferring, pledging, or disposing
of all or any part of the Pledgor’s equity interest; (ii) sign any resolutions adopted by the Board of Ambow Sihua and any
other documents requiring to be signed by the shareholders of Ambow Sihua; and (iii) nominate and appoint the legal representative,
executive director and/or director, supervisor, general manager and other senior management personnel of Ambow Sihua as the Pledgor’s
authorized representative.  

 

The Attorney-in-fact shall act in good faith
for the purpose of maximizing the value of the Pledged Equity (as defined in the Pledge Agreement), and its acts shall be in compliance
with applicable Chinese laws and regulations in all respects. Any act performed by and any document executed by the Attorney-in-fact
hereunder shall be deemed the act performed by or the document executed by the Pledgor.

 

This POA shall come into effect upon the date
of execution. Unless terminated as agreed, this POA shall be irrevocable and remain effective during the Term of Pledge (as defined
in the Pledge Agreement).

 

	 	By:	/s/
	 	 	Gang Huang
	 	 	 
	 	Date:	June 29, 2017

 

     

     

    

 

Power of Attorney

 

Shareholder: Xuejun Xie (“Pledgor”) 
_

 

Attorney-in-fact: Beijing Ambow Shengying Education Technology
Co., Ltd. (“Ambow Shengying”)  _

 

In accordance with the Share Pledge Agreement
executed by Xuejun Xie on June 29,2017 (“Pledge Agreement”), by executing this power of attorney (the “POA”),
the Pledgor hereby appoints Ambow Shengying as his attorney-in-fact (“Attorney-in-fact”) to (i) attend the shareholder
meetings of Ambow Sihua Education and Technology Co., Ltd.. (“Ambow Sihua”) and exercise all voting rights to which
the Pledgor is entitled as a shareholder of Ambow Sihua, including without limitation selling, transferring, pledging, or disposing
of all or any part of the Pledgor’s equity interest; (ii) sign any resolutions adopted by the Board of Ambow Sihua and any
other documents requiring to be signed by the shareholders of Ambow Sihua; and (iii) nominate and appoint the legal representative,
executive director and/or director, supervisor, general manager and other senior management personnel of Ambow Sihua as the Pledgor’s
authorized representative.  

 

The Attorney-in-fact shall act in good faith
for the purpose of maximizing the value of the Pledged Equity (as defined in the Pledge Agreement), and its acts shall be in compliance
with applicable Chinese laws and regulations in all respects. Any act performed by and any document executed by the Attorney-in-fact
hereunder shall be deemed the act performed by or the document executed by the Pledgor.

 

This POA shall come into effect upon the date
of execution. Unless terminated as agreed, this POA shall be irrevocable and remain effective during the Term of Pledge (as defined
in the Pledge Agreement).

 

	 	By:	/s/
	 	 	Xuejun Xie 
	 	 	 
	 	Date:	June 29, 2017

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