Document:

demand_ex10x2.htm

    Exhibit 10.2

     

     

    
 

    Confidential

    

     

    

    

    

    

    

    THE
EXCLUSIVE SERVICE AGREEMENT

    

    AMONG

    

    HANGZHOU
MYL BUSINESS ADMINISTRATION CONSULTING CO., LTD.

    

    AND

    

    HANGZHOU
MYL COMMERCIAL SERVICE CO., LTD.

    

    

    

    

    

    

    

    

    

    

    

    

    

    May 1,
2009

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    THE EXCLUSIVE SERVICE
AGREEMENT

     
 

    THIS
EXCLUSIVE SERVICE AGREEMENT (this “AGREEMENT”) is entered into on May 1, 2009 in
Hangzhou, the People’s Republic of China (“CHINA” or “PRC”) by and
between:

    

    (1)           HANGZHOU MYL BUSINESS
ADMINISTRATION CONSULTING CO., LTD. ( "HANGZHOU MYL CONSULTING"),
a company of limited liabilities incorporated under the laws of China, with its
legal address at Room 604, 260 South Hushu Rd., Gongshu District; Hangzhou,
Zhejiang, PRC, and

     

    (2)           Hangzhou
MYL Commercial SERVICE CO., LTD.(“Hangzhou MYL
Commercial”),
a company of limited liabilities incorporated under the laws of China, with its
legal address at Room 603, 260 South Hushu Rd., Gongshu District; Hangzhou,
Zhejiang, PRC; and

    

    In this
Agreement, Hangzhou MYL Consulting, Hangzhou MYL Commercial and Hangzhou MYL
Commercial Subsidiaries shall hereinafter be referred to as a “PARTY”
individually, and collectively “PARTIES”.)

    

    WHEREAS:

     

    (1)           Hangzhou
MYL Consulting is a management and consultation company, which owns a series of
managing and consulting services applicable to business education
sector.

     

    (2)           As
a company specialized in business education sector, Hangzhou MYL Commercial owns
business education fronts and has already been granted necessary licenses
therefore.

     

    (3)           As
business education entities in China, Hangzhou MYL Commercial Subsidiaries to be
established will own business education fronts, and will be entitled to carrying
on business education business in their respective local places.

     

    (4)           In
order to give Hangzhou MYL Consulting the actual control of Hangzhou MYL
Commercial and Hangzhou MYL Commercial Subsidiaries, Hangzhou MYL Commercial and
Hangzhou MYL Commercial Subsidiaries intends to irrevocable entrust to Hangzhou
MYL Consulting the right of management and operation of Hangzhou MYL Commercial
and Hangzhou MYL Commercial Subsidiaries and the responsibilities and
authorities of their shareholders and directors of Hangzhou MYL Commercial and
Hangzhou MYL Commercial Subsidiaries.

    

    (5)          
Hangzhou MYL Consulting agrees to accept the entrustment of Hangzhou MYL
Commercial and Hangzhou MYL Commercial Subsidiaries, and to exercise the right
of management and operation of Hangzhou MYL Commercial and Hangzhou MYL
Commercial Subsidiaries and the responsibilities and authorities of their
shareholders and board of directors of Hangzhou MYL Commercial and Hangzhou MYL
Commercial Subsidiaries.

    

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

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
1 – DEFINITION

     
 

    1.1           Unless
otherwise interpreted herein or in the context herein, the following terms in
this Agreement shall have the following meanings:

    

    “SERVICE
FEES” means the provision of management and consultation services charged by
Hangzhou MYL Consulting hereunder.

    

    “TRAINING
ENTITY” means Hangzhou MYL Commercial and/or the Hangzhou MYL Commercial
Subsidiaries.

    

    1.2           References
in this Agreement to any laws and regulations (the “LAWS”) shall include
reference (1) at the same time to the amendments, changes, supplements and
reformulations of such Laws, whether or not the effectiveness of the same is
prior to or after the execution of this Agreement; and (2) at the same time to
other decisions, notices and rules formulated or becoming effective according to
such Laws.

     

    

    1.3           Unless
otherwise specified in the context herein, any article, sub-article, section or
paragraph mentioned herein shall refer to the corresponding article,
sub-article, section or paragraph hereof.

    

    ARTICLE
2 - LICENSES AND SERVICES BY HANGZHOU MYL CONSULTING

     
 

    2.1           Hangzhou
MYL Commercial and Hangzhou MYL Commercial Subsidiaries agree to irrevocably
entrust the right of management and operation of Hangzhou MYL Commercial and
Hangzhou MYL Commercial Subsidiaries and the responsibilities and authorities of
their shareholders and board of directors to Hangzhou MYL Consulting in
accordance with the terms and conditions of this Agreement. Hangzhou MYL
Consulting agrees to exercise the aforesaid rights and responsibilities in
accordance with the terms and conditions of this Agreement. 

     

    2.2           The
said entrustment is irrevocable and shall not be withdrawn, unless the Agreement
is terminated pursuant to written agreement of both parties.

    

    2.3       
   The purpose of the entrusted operation is that Hangzhou MYL
Consulting shall be in charge of the normal business operations of Hangzhou MYL
Commercial and Hangzhou MYL Commercial Subsidiaries and perform the
responsibilities and rights of Hangzhou MYL Commercial and Hangzhou MYL
Commercial Subsidiaries’ shareholders and directors. During the term of the
entrusted operation, Hangzhou MYL Consulting, as the entrusted manager, shall
provide full management to Hangzhou MYL Commercial and Hangzhou MYL Commercial
Subsidiaries’ operations.

    

    2.4           The
entrusted operation shall include but not be limited to the
following:

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              1)  

            	
              Hangzhou
      MYL Consulting shall be in charge of, in all aspects, the operation of
      Hangzhou MYL Commercial and Hangzhou MYL Commercial Subsidiaries; nominate
      and replace the director(s) of Hangzhou MYL Commercial and Hangzhou MYL
      Commercial Subsidiaries, and appoint and/or dismiss the management of
      Hangzhou MYL Commercial and Hangzhou MYL Commercial Subsidiaries and
      decide their compensation.

            

    

    

    
      	
              2)  

            	
              Hangzhou
      MYL Consulting shall manage and control all the funds of Hangzhou MYL
      Commercial and Hangzhou MYL Commercial Subsidiaries. The accounts of
      Hangzhou MYL Commercial and Hangzhou MYL Commercial Subsidiaries shall be
      managed solely by Hangzhou MYL Consulting. The seals and signatures for
      such account shall be the seals and signatures of the personnel appointed
      and confirmed by Hangzhou MYL Consulting. All the cash of Hangzhou MYL
      Commercial and Hangzhou MYL Commercial Subsidiaries shall be kept in such
      entrusted accounts and shall be handled through such accounts, including
      but not limited to receipt of all Hangzhou MYL Commercial and Hangzhou MYL
      Commercial Subsidiaries’ business income, working capital, recovered
      account receivables, and the payment of all account payable and operation
      expenses, salaries and asset
purchases.

            

    

    

    
      	
              3)  

            	
              All
      the matters of Hangzhou MYL Commercial and Hangzhou MYL Commercial
      Subsidiaries, including but not limited to internal financial management,
      routine operation, execution and performance of external contact, tax
      declaration and payment, appointment and/or dismissal of staff members,
      shall be controlled and managed by Hangzhou MYL Consulting in all
      aspects.

            

    

    

    
      	
              4)  

            	
              Hangzhou
      MYL Consulting shall enjoy all the other responsibilities and rights
      enjoyed by Hangzhou MYL Commercial and Hangzhou MYL Commercial
      Subsidiaries’ shareholders in accordance with the applicable law and the
      articles of association of Hangzhou MYL Commercial and Hangzhou MYL
      Commercial Subsidiaries, including but not limited
  to:

            

    

    

    
      	
              a.  

            	
              Deciding
      on the business policy and investment plan of Hangzhou MYL Commercial and
      Hangzhou MYL Commercial
Subsidiaries;

            

    

    
      	
              b.  

            	
              Nominating
      the director(s);

            

    

    
      	
              c.  

            	
              Discussing
      and approving the report of the executive
  officers;

            

    

    
      	
              d.  

            	
              Discussing
      and approving the annual financial budget and final
    accounts;

            

    

    
      	
              e.  

            	
              Discussing
      and approving the profit distribution plan and the loss making-up
      plan;

            

    

    
      	
              f.  

            	
              Resolving
      on the increase or decrease of the registered
  capital;

            

    

    
      	
              g.  

            	
              Resolving
      on the issuance of the debentures;

            

    

    
      	
              h.  

            	
              Resolving
      on the merger, division, transformation, dissolution and liquidation of
      the company;

            

    

    
      	
              i.  

            	
              Amending
      the articles of association; and

            

    

    
      	
              j.  

            	
              Other
      responsibilities and rights provided by Hangzhou MYL Commercial and
      Hangzhou MYL Commercial Subsidiaries’ articles of
    association.

            

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              5)  

            	
              Hangzhou
      MYL Consulting enjoys all the other responsibilities and rights enjoyed by
      Hangzhou MYL Commercial and Hangzhou MYL Commercial Subsidiaries’ board of
      directors and executive officers in accordance with the applicable law and
      the articles of association of Hangzhou MYL Commercial and Hangzhou MYL
      Commercial Subsidiaries, including but not limited
  to:

            

    

    

    
      	
              a.  

            	
              Implementing
      the resolution of the shareholders;

            

    

    
      	
              b.  

            	
              Deciding
      on the company’s business plan and investment
  scheme;

            

    

    
      	
              c.  

            	
              Preparing
      the annual financial budget and final
accounts;

            

    

    
      	
              d.  

            	
              Formulating
      the profit distribution plan and the loss making-up
  plan;

            

    

    
      	
              e.  

            	
              Formulating
      the plans regarding to the increase or decrease of the registered capital
      and the issuance of the debentures;

            

    

    
      	
              f.  

            	
              Formulating
      the plans regarding to the matters including merger, division, change of
      corporate form and dissolution of the
company;

            

    

    
      	
              g.  

            	
              Deciding
      on the establishment of the internal management structure of the
      company;

            

    

    
      	
              h.  

            	
              Formulating
      the fundamental rules and regulations of the
  company;

            

    

    
      	
              i.  

            	
              Representing
      the company to sign relative
documents;

            

    

    
      	
              j.  

            	
              Other
      responsibilities and rights provided by Hangzhou MYL Commercial and
      Hangzhou MYL Commercial Subsidiaries’ articles of
    association.

            

    

     

    2.6          
All facilities provided by Hangzhou MYL Consulting hereunder shall belong, in
terms of ownership, to Hangzhou MYL Consulting, while Hangzhou MYL Commercial
and Hangzhou MYL Commercial Subsidiaries shall only have the right to use the
same during the valid term of this Agreement.

    

    ARTICLE
3 SERVICE FEES

     

    3.1           The
Service Fees to be charged by Hangzhou MYL Consulting for its provision of
services hereunder shall be as follows:

    

    (1)            Service
Fees to be paid by the Training Entities shall equal to 95% of the total income
of the Training Entities which can be waived by Hangzhou MYL Consulting from
time to time in its sole discretion.  

    

    (2)           
The amount of Service Fees agreed in (1) above shall be shared among the
Training Entities pro rata on a quarterly basis according to their actual
incomes from main business in the current month.

    

    3.2           
Upon written agreement between Hangzhou MYL Consulting and the Training
Entities, the fees agreed in Article 3.1 or their calculation percentage may be
adjusted as the case may be, with particulars thereof to be stipulated in
separate supplementary agreements to be entered into between the two Parties as
an appendix hereto.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.3           
The Training Entities shall, in accordance with this Article 3, pay promptly the
amounts due and payable to Hangzhou MYL Consulting to the bank account
designated by Hangzhou MYL Consulting. In case that Hangzhou MYL Consulting is
to change its bank account, Hangzhou MYL Consulting shall send the
seven-working-days written notice to the Training Entities.

    

    ARTICLE
4 – EXCLUSIVITY

    

    4.1           Without
prior written consent by Hangzhou MYL Consulting, none of the Training Entities
may accept any management and consulting services from any other third
parties.

    

    4.2           Hangzhou
MYL Consulting shall no longer provide to any other business education companies
at the local places of the Training Entities such management and consulting
services similar to those hereunder. However, this Article does not restrict
Hangzhou MYL Consulting from providing such similar services to Training
Entities in other cities. Such new Training Entities may, through signing
Acknowledgement Letter in the form of Appendix 1 hereof, become a party of this
Agreement, to enjoy the same rights and to assume the same obligations as other
Training Entities do; provided that such new Training Entities shall perform,
starting from the date of execution of the Acknowledgement Letter, the payment
obligations hereunder of the Exclusive Service Fees. As the rights and
obligations of the Training Entities hereunder are severable and independent
from each other’s, such new Training Entities will not, by their joining in this
Agreement, affect in any way the rights and obligations of the existing Training
Entities. The accession of such new Training Entities shall only subject to the
confirmation by Hangzhou MYL Consulting by signing a relevant agreement. The
Training Entities agree hereby irrevocably and unconditionally to such
accession, and further confirm that such accession will in no event be subject
to the agreement of existing Training Entities.

    

    ARTICLE
5 - INTELLECTUAL PROPERTY

    

    5.1           The
rights of intellectual property concerning the work product created during the
process of services rendered by Hangzhou MYL Consulting hereunder shall belong
to Hangzhou MYL Consulting.

     

    5.2           During
the valid term of this Agreement, if Hangzhou MYL Consulting develops any new
technology that may be used in the daily business education or management of the
Training Entities, or provides the Training Entities with other services not
included herein at their request, the Parties agree to cooperate with each other
firstly in the manner agreed herein or in a manner most similar to what is
agreed herein, with necessary adjustments to the Service Fee percentage under
Article 3 hereof.

    

    ARTICLE
6 – CONFIDENTIALITY

     

    6.1           No
matter whether this Agreement is terminated or not, the Parties shall be obliged
to keep in strict confidence the trade secrets, proprietary information and
customer information in relation to other Parties and any other non-public
information of other Parties which they may become aware of as the result of
their involvement of the negotiation, signing and performance of this Agreement
(collectively, “CONFIDENTIAL INFORMATION”).

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Unless
with prior written consent of such other Parties or in case of compulsory
obligation to disclose to any parties other than the Parties hereof as required
by relevant laws, regulations or listing rules, no Party shall disclose the
Confidential Information, wholly or partly, to any parties other than Parties
hereof; unless for the purpose of performance of this Agreement, no Party shall
use the Confidential Information, directly or indirectly, wholly or partly, for
any other purposes, or it shall bear the default liability and indemnify the
losses.

    

    6.2           Upon
termination of this Agreement, the Parties shall, upon demand by the disclosing
Parties, return, destroy or otherwise dispose of all the documents, materials or
software containing the Confidential Information and suspend using such
Confidential Information.

    

    6.3           Notwithstanding
any other provisions hereof, this Article shall survive the suspension or
termination of this Agreement.

    

    ARTICLE
7 - UNDERTAKINGS AND GUARANTEES

     

    Hangzhou
MYL Consulting and Hangzhou MYL Commercial hereby undertake and guarantee for
itself, respectively, that:

    

    7.1           it
is a company of limited liabilities duly registered and legally existing under
the PRC laws with independent legal person status, and with full and independent
status and legal capacity to execute, deliver and perform this Agreement, and
may act independently as a subject of actions;

    

    7.2           its
has full internal power and authority within its company to execute and deliver
this Agreement and all the other documents to be entered into by it in relation
to the transaction referred to herein, and it has the full power and authority
to complete the transaction referred to herein.  This Agreement shall
be executed and delivered by it legally and properly, and constitutes the legal
and binding obligations on it and is enforceable on it in accordance with its
terms and conditions;

    

    7.3           it
has all business licenses necessary for its business operations as of the
effective date of this Agreement, has full rights and qualifications to engage
in its currently engaged businesses, may perform its obligations hereunder, and
will maintain, during the valid term of this Agreement, the validity of all its
such business licenses; and

    

    7.4           it
shall inform promptly the other Parties of any litigations it is involved in and
other disadvantageous circumstances that may affect the performance hereof, and
shall endeavor at its best efforts to prevent the deterioration of losses caused
by such litigations or other disadvantageous circumstances.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
8 - TERM

     

    8.1           The
Parties hereby confirm that, once this Agreement is formally executed by the
Parties, this Agreement shall be effective as of May 1, 2009. Unless earlier
terminated by any of the Parties in writing, this Agreement shall be valid for a
term of five (5) years commencing May 1, 2009; provided that it shall be deemed
to be automatically extended for another five (5) years starting from the
expiration date unless Hangzhou MYL Consulting sends a written notice indicating
its objection to extending of this agreement.

    

    Notwithstanding
the provision in the preceding sentence, as the rights and obligations of each
of the Training Entities hereunder are separate and independent from each other,
upon agreement in writing by Hangzhou MYL Consulting, this Agreement may be
terminated only in respect of such relevant Training Entity, in which case such
termination shall not be subject to agreement by other Training
Entities.

    

    8.2           The
Parties hereby confirm that, from 2011 on, the Service Fees shall be negotiated
on January 1 each year, with any adjustment thereto (if any) to be made in
writing as an appendix hereto.

    

    8.3 Upon
termination of this Agreement, each Party shall keep abiding by its obligations
under the Articles 3 and 6 hereof.

    

    ARTICLE
9 – NOTICE

     

    9.1           
Any notice, request, demand and other correspondences made as required by or in
accordance with this Agreement shall be made in writing and delivered to the
relevant Party.

    

    9.2           
The abovementioned notice or other correspondences shall be deemed to have been
delivered when it is transmitted if transmitted by facsimile or telex; it shall
be deemed to have been delivered when it is delivered if delivered in person; it
shall be deemed to have been delivered five (5) days after posting the same if
posted by mail.

    

    ARTICLE
10 - DEFAULT LIABILITY

     

    10.1         
The Parties agree and confirm that, if any Party (the “DEFAULTING PARTY”)
breaches substantially any provision hereof, or fails substantially to perform
any of the obligations hereunder, such breach or failure shall constitute a
default hereunder ( “DEFAULT”), then the non-defaulting Party shall have the
right to require the Defaulting Party to make remedy within a reasonably
specified period. If the Defaulting Party fails to make remedy within such
reasonable period or within ten (10) days after the non-defaulting Party
notifying the Defaulting Party in writing and requiring it to make remedy, then
the non-defaulting Party shall have the right, at its sole discretion, to (1)
terminate this Agreement and require the Defaulting Party to keep it fully
indemnified; or (2) to demand the enforcement of the Defaulting Party’s
obligations hereunder and require the Defaulting Party to keep it fully
indemnified.

    

    10.2
        The Parties agree that any of the
following events shall be deemed to have constituted a Default:

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ( 1)Any of Hangzhou
MYL Commercial, Hangzhou MYL Commercial Subsidiaries or their respective
shareholders breaches any provisions of the SHAREHOLDERS’
VOTING RIGHTS PROXY AGREEMENT entered into by it with HANGZHOU MYL
CONSULTING;

    

    ( 2)any of Hangzhou
MYL Commercial, Hangzhou MYL Commercial Subsidiaries or their respective
shareholders breaches any provisions of other Agreements entered into by it with
Hangzhou MYL Consulting on May 1, 2009.

     

    10.3         
The Parties agree and confirm that under no circumstances shall Hangzhou MYL
Commercial and Hangzhou MYL Commercial Subsidiaries be able to demand
termination of this Agreement for whatever reason, unless the Laws or this
Agreement provides for otherwise.

    

    10.4         
Notwithstanding any other provisions herein, this Article 10 shall survive the
suspension or termination of this Agreement.

    

    ARTICLE
11 - FORCE MAJEURE

     

    In the
event of earthquake, typhoon, flood, fire, war, computer virus, loophole in the
design of tooling software, internet system encountering hacker’s invasion,
change of policies or laws, and other unforeseeable or unpreventable or
unavoidable event of force majeure, which directly prevents a Party from
performing this Agreement or performing the same on the agreed condition, the
Party encountering such a force majeure event shall forthwith issue a notice by
a facsimile and, within thirty (30) days, present the documents proving the
details of such force majeure event and the reasons for which this Agreement is
unable to be performed or is required to be postponed in its performance, and
such proving documents shall be issued by the notaries office of the area where
such force majeure event takes place. The Parties shall consult each other and
decide whether this Agreement shall be waived in part or postponed in its
performance with regard to the extent of impact of such force majeure event on
the performance of this Agreement. No Party shall be liable to compensate for
the economic losses brought to the other Parties by the force majeure
event.

    

    ARTICLE
12 – MISCELLANEOUS

     

    12.1          This
Agreement shall be prepared in Chinese and English in duplicate, with each Party
holding one (1) copy hereof.

    

    12.2          The
formation, validity, execution, amendment, interpretation and termination of
this Agreement shall be governed by the PRC Laws.

    

    12.3           Any
disputes arising hereunder and in connection herewith shall be settled through
consultations among the Parties, and if the Parties cannot reach an agreement
regarding such disputes within thirty (30) days of their occurrence, such
disputes shall be submitted to China International Economic and Trade
Arbitration Commission Shanghai Branch for arbitration in Shanghai in accordance
with the arbitration rules of such Commission, and the arbitration award shall
be final and binding on the Parties involved in such dispute.

     
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    12.4          Any
rights, powers and remedies empowered to any Party by any provisions herein
shall not preclude any other rights, powers and remedies enjoyed by such Party
in accordance with laws and other provisions under this Agreement, and the
exercise of its rights, powers and remedies by a Party shall not preclude its
exercise of its other rights, powers and remedies by such Party.

    

    12.5          Any
failure or delay by a Party in exercising any of its rights, powers and remedies
hereunder or in accordance with laws (the “PARTY’S RIGHTS”) shall not lead to a
waiver of such rights, and the waiver of any single or partial exercise of the
Party’s Rights shall not preclude such Party from exercising such rights in any
other way and exercising the remaining part of the Party’s Rights.

    

    12.6          The
titles of the Articles contained herein shall be for reference only, and in no
circumstances shall such titles be used in or affect the interpretation of the
provisions hereof.

    

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

    

    12.8          Once
executed, this Agreement shall replace any other legal documents entered into by
the relevant Parties hereof in respect of the same subject matter
hereof.

    

    12.9          Any
amendments or supplements to this Agreement shall be made in writing and shall
take effect only when properly signed by the Parties to this
Agreement.

    

    12.10        No
Party shall assign any of its rights and/or obligations hereunder to any parties
other than the Parties hereof without the prior written consent from the other
Parties.

    

    12.11        This
Agreement shall be binding on the legal successors of the Parties.

    

    12.12        The
rights and obligations of each of the Hangzhou MYL Commercial Subsidiaries
hereunder will be independent and severable from each other, and the performance
by any of the Hangzhou MYL Commercial Subsidiaries of its obligations hereunder
shall not affect the performance by any other of the Hangzhou MYL Commercial
Subsidiaries of their obligations hereunder.

    

    12.13           Each
of the Parties undertakes to declare and pay respectively according to the Laws
any taxes in relation to the transaction hereunder.

    

     [THE
REMAINDER OF THIS PAGE IS LEFT BLANK]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
WITNESS HEREOF, the Parties have caused this Exclusive Service Agreement to be
executed in Hangzhou as of the date first above mentioned.

    

    For and
on behalf of

    HANGZHOU
MYL BUSINESS ADMINISTRATION CONSULTING CO., LTD

    

    Signed
by:  //signed//

    

    Name:

    Position:

    

    

    Hangzhou
MYL Commercial Service Co., Ltd.

    

    Signed
by:   //signed//

    

    Name:

    Position:

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     APPENDIX 1 - ACKNOWLEDGEMENT
LETTER

    

    

    _____________________________,

    of the
registered address at _______________________

    (the “NEW
PARTY”), hereby agrees to join in as an independent contractor under the
Exclusive Service Agreement by and between Hangzhou MYL Business Administration
Consulting Co., Ltd. and Hangzhou MYL Commercial Service Co., Ltd. on May 1,
2009, as to become one of the companies defined as “Hangzhou MYL Commercial
Subsidiaries” therein, to carry out cooperation with Hangzhou MYL Business
Administration Consulting Co., Ltd. and Hangzhou MYL Commercial Service Co.,
Ltd. under that agreement. By signing this Acknowledgement Letter, the New Party
shall be deemed to have made the same undertakings and guarantees as have been
made by the Hangzhou MYL Commercial and Hangzhou MYL Commercial Subsidiaries
under the Exclusive Service Agreement, and it further agrees to perform the
obligations to be performed by the Hangzhou MYL Commercial Subsidiaries under
the Exclusive Service Agreement, and recognizes the rights and obligations of
all the parties under the Exclusive Service Agreement. As for the New Party, the
cooperation under that agreement shall begin on the date upon which this
Acknowledgement Letter is executed by the New Party and Hangzhou MYL Business
Administration Consulting Co., Ltd..

    

    For and
on behalf of

    

    NEW
PARTY

    

    Signed
by:  

    Name:

    Position:

    

    

    For and
on behalf of

    

    Hangzhou
MYL Business Administration Consulting Co., Ltd.

    

    Signed
by:  

    Name:

    Position:demand_ex10x3.htm

    Exhibit 10.3

     

     

    
 

    CONFIDENTIAL

    

    

    

     

    

    EQUITY
PLEDGE AGREEMENT

    

    

    AMONG

    

    Xianbin
MENG,

    Xiaobo
SHEN,

    HANGZHOU
MYL COMMERCIAL SERVICE CO., LTD.

    AND

    HANGZHOU
MYL BUSINESS ADMINISTRATION CONSULTING CO., LTD.

    

    

     

    

    

    

    

    

    May 1,
2009

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    

    EQUITY
PLEDGE AGREEMENT

    

    This
EQUITY PLEDGE AGREEMENT (hereinafter, this "AGREEMENT") is entered into in the
People's Republic of China (hereinafter, "PRC") on May 1, 2009 by and
between:

    

    (1)
Xianbin MENG

    Address:
Xianjin Village, Tielu Town, Langao County, Shanxi Province, PRC

    Identity
Card Number: 612426198009283412

    

    (2)
Xiaobo SHEN

    Address:40
Lane No.1025, Liuying Rd., Zhabei District, Shanghai, PRC

    Identity
Card Number: 310108198606112011

    

    (3) Hangzhou
MYL Commercial Service Co., Ltd. (Hereinafter "Hangzhou MYL
Commercial)

    Registered
Address: Room 603, 260 South Hushu Rd., Gongshu District; Hangzhou, Zhejiang,
PRC

    Legal
Representative: Xianbin MENG

    

    (4)
Hangzhou MYL Business Administration Consulting Co., Ltd..( "Hangzhou MYL
Consulting")

    Registered
Address: Room 604, 260 South Hushu Rd., Gongshu District; Hangzhou, Zhejiang,
PRC

    Legal
Representative: Kaien LIANG

    

    The above
Parties hereinafter each referred to as a "PARTY" individually, and
collectively, the "PARTIES". Among them, Xianbin MENG and Xiaobo SHEN
hereinafter referred to as an "INDIVIDUAL PLEDGOR" individually, and
collectively, the "INDIVIDUAL PLEDGORS"; the Individual Pledgor and HANGZHOU MYL
COMMERCIAL hereinafter referred to as a "PLEDGOR" individually, and
collectively, the "PLEDGORS"; Hangzhou MYL Consulting hereinafter referred to as
a "PLEDGEE".)

    

    WHEREAS:

    

    (1) As
of the date of this Agreement, Xianbin MENG and Xiaobo SHEN are the registered
shareholders of HANGZHOU MYL COMMERCIAL, legally holding all the equity of the
HANGZHOU MYL COMMERCIAL, of which Xianbin MENG holding 70% and Xiaobo SHEN
holding 30%.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (2) HANGZHOU
MYL COMMERCIAL will be the registered shareholder of HANGZHOU MYL COMMERCIAL
Subsidiaries to be established, legally holding all or the majority equity of
such companies when they are established.

    

    (3) Pursuant
to the Call Option Agreement dated May 1, 2009 among Hangzhou MYL Consulting,
the Pledgors and the Target Companies (as defined below) (hereinafter, the "CALL
OPTION AGREEMENT"), the Pledgors shall transfer part or all of the equity
interest of the Target Companies to Hangzhou MYL Consulting and/or any other
entity or individual designated by Hangzhou MYL Consulting at the request of the
Hangzhou MYL Consulting.

    

    (4) Pursuant
to the Shareholders' Voting Right Proxy Agreement dated May 1, 2009 among
Hangzhou MYL Consulting, the Target Company and the Pledgors (hereinafter, the
"PROXY AGREEMENT"), Pledgors have already irrevocably entrusted the personnel
designated by Hangzhou MYL Consulting then with full power to exercise on their
behalf all of their shareholders' voting rights in respect of the relevant
Target Companies.

    

    (5) Pursuant
to the Exclusive Service Agreement dated May 1, 2009 among Hangzhou MYL
Consulting and the Target Companies (hereinafter, the "SERVICE AGREEMENT"), the
Target Companies have already engaged Hangzhou MYL Consulting exclusively to
provide them with relevant management and consultation and other services, for
which the Target Companies will respectively pay Hangzhou MYL Consulting
services accordingly.

    

    (6) As
security for performance by the Pledgors of the Contract Obligations (as defined
below) and repayment of the Guaranteed Liabilities (as defined below), the
Pledgors agree to pledge all of their Target Company Equity to the Pledgee and
grant the Pledgee the right to request for repayment in first priority and the
Target Companies agree such equity pledge arrangement.

    

    THEREFORE,
the Parties hereby have reached the following agreement upon mutual
consultations:

    

    ARTICLE
1 – DEFINITION

    
 

    1.1  Except
as otherwise construed in the context, the following terms in this Agreement
shall be interpreted to have the following meanings:

    

    "CONTRACT
OBLIGATIONS" shall mean all contractual obligations of a Pledgor under the Call
Option Agreement and Proxy Agreement; all contractual obligations of a Target
Company under the Exclusive Service Agreement, Call Option Agreement, Proxy
Agreement; and all contractual obligations of a Pledgor under this
Agreement.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "TARGET
COMPANY" shall mean, to Xianbin MENG and Xiaobo SHEN, HANGZHOU MYL COMMERCIAL;
and to HANGZHOU MYL COMMERCIAL, any and all HANGZHOU MYL COMMERCIAL Subsidiaries
to be established.

    

    "GUARANTEED
LIABILITIES" shall mean all direct, indirect and consequential losses and losses
of foreseeable profits suffered by Pledgee due to any Breaching Event (as
defined below) a Pledgor and/or a Target Company, and all fees incurred by
Pledgee for the enforcement of the Contractual Obligations of a Pledgor and/or a
Target Company.

    

    "TRANSACTION
AGREEMENTS" shall mean the Call Option Agreement and the Proxy Agreement in
respect of a Pledgor; the Exclusive Service Agreement, and Proxy Agreement in
respect of a Target Company.

    

    "BREACHING
EVENT" shall mean any breach by either Pledgor of its Contract Obligations under
the Proxy Agreement, Call Option Agreement or this Agreement; any breach by a
Target Company of its Contract Obligations under the Service Agreement, Call
Option Agreement and/or Proxy Agreement.

    

    "PLEDGED
PROPERTY" shall mean (1) in respect of Xianbin MENG and Xiaobo SHEN, all of the
equity interests in HANGZHOU MYL COMMERCIAL which are legally owned by them as
of the effective date hereof and is to be pledges by them to the Pledgee
according to provisions hereof as the security for the performance by them and
HANGZHOU MYL COMMERCIAL of their Contractual Obligations, and the increased
capital contribution and equity interest described in Articles 2.6 and 2.7
hereof;(2) in respect of HANGZHOU MYL COMMERCIAL, all of the equity interest in
the Target Companies which will be legally owned by it when such Target
Companies are to be established and is to be pledged to the Pledgee by it
according to provisions hereof as the security for the performance of the
Contractual Obligations by it and the Target Companies, and the increased
capital contribution and equity interest described in Articles 2.6 and 2.7
hereof.

    

    "PRC LAW"
shall mean the then valid laws, administrative regulations, administrative
rules, local regulations, judicial interpretations and other binding regulatory
documents of the People's Republic of China.

    

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

    

     (1)  to
include the references to the amendments, changes, supplements and reenactments
of such law, irrespective of whether they take effect before or after the
formation of this Agreement; and

    

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

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    ARTICLE
2 - EQUITY PLEDGE

     

    2.1   Each
Pledgor hereby agrees to pledge the Pledged Property, which it legally owns and
has the right to dispose of, to Pledgee according to the provisions hereof as
the security for the performance of the Contract Obligations and the repayment
of the Guaranteed Liabilities. Each Target Company hereby agrees that the
Pledgors legally holding equity interest in it to pledge the Pledged Property to
the Pledgee according to the provisions hereof.

    

    2.2  Each
Pledgor hereby undertakes that it will be responsible for, recording the
arrangement of the equity pledge hereunder (hereinafter, the "EQUITY PLEDGE") on
the shareholder register of each Target Company on the date hereof, and will do
its best endeavor to make registration with registration authorities of industry
and commerce of each Target Company. Each Target Company respectively undertakes
that it will do its best to cooperate with the Pledgors to complete the
registration with authorities of industry and commerce under this
Article.

    

    2.3  During
the valid term of this Agreement, except for the willful misconduct or gross
negligence of Pledgee which has direct cause and effect relationship the
reduction in value of the Pledged Property, Pledgee shall not be liable in any
way to, nor shall Pledgors have any right to claim in any way or propose any
demands on Pledgee, in respect of the said reduction in value of the Pledged
Property.

    

    2.4   To
the extent not violating provision of Article 2.3 above, in case of any
possibility of obvious reduction in value of the Pledged Property which is
sufficient to jeopardize Pledgee's rights, Pledgee may at any time auction or
sell off the Pledged Property on behalf of Pledgors, and discuss with Pledgors
to use the proceeds from such auction or sale-off as pre-repayment of the
Guaranteed Liabilities, or may submit such proceeds to the local notary
institution where Pledgee are domiciled (any fees incurred in relation thereto
shall be borne by Pledgors).

    

    2.5  Hangzhou
MYL Consulting as Pledgee shall be deemed to have created the encumbrance of
first order in priority on the Pledged Property, and in case of any Breaching
Event, Pledgee shall have the right to dispose of the Pledged Property in the
way set out in Article 4 hereof.

    

    2.6  Only
upon prior consent by Pledgee shall Pledgors be able to increase their capital
contribution to any or all of the Target Companies. Further capital contribution
made by Pledgor (s) in the Target Company shall also be part of the Pledged
Property.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.7  Only
upon prior consent by Pledgee shall Pledgors be able to receive dividends or
share profits from the Pledged Property. The dividends or the profits received
by Pledgors from the Pledged Property shall be deposited into Pledgee's bank
account designated by Pledgee respectively, to be under the supervision of
Pledgee and used as the Pledged Property to repay in priority the Guaranteed
Liabilities.

    

    2.8   Xianbin
MENG and Xiaobo SHEN agree to bear joint liabilities respectively to Pledgee
upon occurrence of any Breaching Event on the part of HANGZHOU MYL COMMERCIAL
and Pledgee shall have the right, upon occurrence of the Breaching Event, to
dispose of any Pledged Property of either of Pledgors in accordance with the
provisions hereof.

    

    ARTICLE
3 - RELEASE OF PLEDGE

     

    In
respect of equity interest of any Target Company, upon full and complete
performance by relevant Pledgors of all of their Contractual Obligations,
Pledgee shall, at the request of relevant Pledgors, release the pledge created
on such Target Company under this Agreement, and shall cooperate with relevant
Pledgors to go through the formalities to cancel the record of the Equity Pledge
in the shareholder register of the relevant Target Company, with the reasonable
fees incurred in connection with such release to be borne by Pledgee with the
same proportion.

    

    ARTICLE
4 - DISPOSAL OF THE PLEDGED PROPERTY

     

    4.1   Pledgors,
Target Companies and Pledgee hereby agree that, in case of any Breaching Event,
Pledgee shall have the right to exercise, upon giving written notice to
Pledgors, all of the remedial rights and powers enjoyable by them under PRC Law,
including but not limited to being repayment in priority with proceeds from
auctions or sale-offs of the Pledged Property. Pledgee shall not be liable for
any loss as the result of their reasonable exercise of such rights and
powers.

    

    4.2  Pledgee
shall have the right to designate in writing its legal counsel or other agents
to exercise on their respective behalf any and all rights and powers set out
above, and neither Pledgors nor Target Companies shall not oppose
thereto.

    

    4.3  The
reasonable costs incurred by Pledgee in connection with their exercise of any
and all rights and powers set out above shall be borne by Pledgors, and Pledgee
shall have the right to deduct the costs actually incurred from the proceeds
that they acquire from the exercise of the rights and powers.

    

    4.4  The
proceeds that Pledgee acquire from the exercise of their
respective  rights and powers shall be used in the priority order as
follows:

    

    First, to
pay any cost incurred in connection with the disposal of   the
Pledged Property and the exercise by Pledgee of their respective rights and
powers (including remuneration paid to their respective legal counsels and
agents);

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    - Second,
to pay any taxes and levies payable for the disposal of the Pledged Property;
and

    

    -Third,
to repay Pledgee for the Guaranteed Liabilities.

    

    In case
of any balance after payment of the above amounts, Pledgee shall return the same
to Pledgors or other persons entitled thereto according to the relevant laws and
rules or submit the same to the local notary institution where Pledgee are
domiciled (any fees incurred in relation thereto shall be borne by
Pledgors).

    

    4.5  Pledgee
shall have the option to exercise, simultaneously or in certain sequence, any of
the remedies at breaching that it is entitled to in respect of the equity
interest of any Target Company holding by any Pledgor; Pledgee shall not be
obliged to exercise other remedies at breaching before their exercise of the
right to the auctions or sale-offs of the Pledged Property hereunder. Pledgors
or Target Companies shall not oppose to whether Pledgee exercise any part of the
right to the pledge or the sequence of exercising the pledge
interest.

    

    ARTICLE
5 - FEES AND COSTS

     

    All costs
actually incurred in connection with the establishment of the Equity Pledge
hereunder, including but not limited to stamp duties, any other taxes, all legal
fees, etc shall be borne by Pledgee with the same proportion.

    

    ARTICLE
6 - CONTINUITY AND NO WAIVE

     

    The
Equity Pledge hereunder is a continuous guarantee, with its validity to continue
until the full performance of the Contractual Obligations or the full repayment
of the Guaranteed Liabilities. Neither exemption or grace period granted by
Pledgee to Pledgors in respect of their breach, nor delay by Pledgee in
exercising any of their rights under this Agreement shall affect the rights of
Pledgee under this Agreement, relevant PRC Law, the rights of Pledgee to demand
at anytime thereafter the strict performance of this Agreement by Pledgors or
the rights Pledgee may be entitled to due to subsequent breach by Pledgors of
the obligations under this Agreement.

     

    ARTICLE
7 - REPRESENTATIONS AND WARRANTIES BY PLEDGORS

     

    Each of
Pledgors hereby, in respect of itself and Target Company in which it holds
equity interest, represents and warrants to Pledgee as follows:

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.1   Each
Individual Pledgor is a PRC citizen with full capacity of disposition and has
obtained due authorization to execute, deliver and perform this Agreement and
can independently be a subject of actions; HANGZHOU MYL COMMERCIAL is a limited
liability corporation duly incorporated and validly existing under PRC Law, has
full right and authorization to execute and deliver this Agreement and other
documents relating to the transaction as stipulated in this Agreement and to be
executed by them. It also has full right and authorization to complete the
transaction stipulated in this Agreement.

    

    7.2  Target
Company will be a limited liability entity duly incorporated and validly
existing under PRC Law, it has independent status as a legal person; it has full
and independent legal status and capacity to execute, deliver and perform this
Agreement and can independently be a subject of actions. It has full right and
authorization to execute and deliver this Agreement and other documents relating
to the transaction as stipulated in this Agreement and to be executed by them.
It also has full right and authorization to complete the transaction stipulated
in this Agreement.

    

    7.3  All
reports, documents and information concerning Pledgors and all matters as
required by this Agreement which are provided by Pledgors to Pledgee before this
Agreement comes into effect are true, correct and effective in all material
aspects as of the execution hereof.

    

    7.4  At
the time of the effectiveness of this Agreement, Pledgors are the sole legal
owner of the Pledged Property, with no existing dispute whatever concerning the
ownership of the Pledged Property. Pledgors have the right to dispose of the
Pledged Property or any part thereof.

    

    7.5  Except
for the encumbrance set on the Pledged Property hereunder and the rights set
under the Transaction Agreements, there is no other encumbrance or third party
interest set on the Pledged Property.

    

    7.6  The
Pledged Property is capable of being pledged or transferred according to the
laws, and Pledgors have the full right and power to pledge the Pledged Property
to Pledgee according to this Agreement.

    

    7.7  This
Agreement constitutes the legal, valid and binding obligations on Pledgors when
it is duly executed by Pledgors.

    

    7.8  Any
consent, permission, waive or authorization by any third person, or any
approval, permission or exemption by any government authority, or any
registration or filing formalities (if required by laws) with any government
authority to be handled or obtained in respect of the execution and performance
hereof and the Equity Pledge hereunder have already been handled or obtained,
and will be fully effective during the valid term of this
Agreement.

     
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.9   The
execution and performance by Pledgors of this Agreement are not in violation of
or conflict with any laws applicable to them, or any agreement to which they are
a party or which has binding effect on their assets, any court judgment, any
arbitration award, or any administration authority decision.

    

    7.10  The
pledge hereunder constitutes the encumbrance of first order in priority on the
Pledged Property.

    

    7.11  All
taxes and fees payable in connection with acquisition of the
Pledged  Property have already been paid in full amount by
Pledgors.

    

    7.12  There
is no pending or, to the knowledge of Pledgors, threatened litigation, legal
process or demand by any court or any arbitral tribunal against Pledgors, or
their property, or the Pledged Property, nor is there any pending or, to the
knowledge of Pledgors, threatened litigation, legal process or demand by any
government authority or any administration authority against Pledgors, or their
property, or the Pledged Property, which is of material or detrimental effect on
the economic status of Pledgors or their capability to perform the obligations
hereunder and the Guaranteed Liabilities.

    

    7.13           Pledgors
hereby warrant to Pledgee that the above representations and warranties will
remain true, correct and effective at any time and under any circumstance before
the Contractual Obligations are fully performed or the Guaranteed Liabilities
are fully repaid, and will be fully complied with.

    

    ARTICLE
8 - REPRESENTATIONS AND WARRANTIES

    IN
RESPECT OF TARGET COMPANY

     

    HANGZHOU
MYL COMMERCIAL hereby represents and warrants to Pledgee that HANGZHOU MYL
COMMERCIAL and each Target Company: :

    

    8.1  is
or will be a limited liability corporation or entity duly incorporated and
validly existing under PRC Law, with full capacity of disposition and has
obtained due authorization to execute, deliver and perform this Agreement and
can independently be a subject of actions.

    

    8.2  All
reports, documents and information concerning Pledged Property and all matters
as required by this Agreement which are provided by HANGZHOU MYL COMMERCIAL to
Pledgee before this Agreement comes into effect are true, correct and effective
in all material aspects as of the execution hereof.

    

    8.3  All
reports, documents and information concerning Pledged Property and all matters
as required by this Agreement which are provided by HANGZHOU MYL COMMERCIAL to
Pledgee after this Agreement comes into effect are true, correct and effective
in all material aspects upon provision.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8.4  This
Agreement constitutes the legal, valid and binding obligations on HANGZHOU MYL
COMMERCIAL when it is duly executed by HANGZHOU MYL COMMERCIAL.

    

    8.5  It
has full right and authorization to execute and deliver this Agreement and other
documents relating to the transaction as stipulated in this Agreement and to be
executed by them. It also has full right and authorization to complete the
transaction stipulated in this Agreement.

    

    8.6   There
is no pending or, to the knowledge of HANGZHOU MYL COMMERCIAL, threatened
litigation, legal process or demand by any court or any arbitral tribunal
against HANGZHOU MYL COMMERCIAL, or their property (including but are not
limited to the Pledged Property), nor is there any pending or, to the knowledge
of HANGZHOU MYL COMMERCIAL, threatened litigation, legal process or demand by
any government authority or any administration authority against HANGZHOU MYL
COMMERCIAL, or their property (including but are not limited to the Pledged
Property), which is of material or detrimental effect on the economic status of
HANGZHOU MYL COMMERCIAL or their capability to perform the obligations hereunder
and the Guaranteed Liabilities.

    

    8.7   Each
of HANGZHOU MYL COMMERCIAL hereby agree to bear joint responsibilities to
Pledgee in respect of the representations and Warranties made by its relevant
Pledgor according to Article 7.5, Article 7.6, Article 7.7, Article 7.9 and
Article 7.11 hereof.

    

    8.8  HANGZHOU
MYL COMMERCIAL hereby warrant to Pledgee that the above representations and
warranties will remain true, correct and effective at any time and under any
circumstance before the Contractual Obligations are fully performed or the
Guaranteed Liabilities are fully repaid, and will be fully complied
with.

    

    ARTICLE
9 - UNDERTAKINGS BY PLEDGORS

     

    Each of
Pledgors hereby individually undertakes to Pledgee in respect of it and Its
Target Company of which it holds equity as follows:

    

    9.1  Without
the prior written consent by Pledgee, Pledgors shall not establish or permit to
establish any new pledge or any other encumbrance on the Pledged
Property.

    

    9.2  Without
first giving written notice to Pledgee and having Pledgee's prior written
consent, Pledgors shall not transfer the Pledged Property, and any attempt by
Pledgors to transfer the Pledged Property shall be null and void. The proceeds
from transfer of the Pledged Property by Pledgors shall be used to repay to
Pledgee in advance the Guaranteed Liabilities or submit the same to the third
party agreed with Pledgee.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.3  In
case of any litigation, arbitration or other demand which may affect
detrimentally the interest of Pledgors or Pledgee under the Transaction
Agreements and hereunder or the Pledged Property, Pledgors undertake to notify
Pledgee thereof in writing as soon as possible and promptly and shall take, at
the reasonable request of Pledgee, all necessary measures to ensure the pledge
interest of Pledgee in the Pledged Property.

    

    9.4  Pledgors
shall not carry on or permit any act or action which may affect detrimentally
the interest of Pledgee under the Transaction Agreements and hereunder or the
Pledged Property.

    

    9.5  Pledgors
guarantee that they shall, at the reasonable request of Pledgee, take all
necessary measures and execute all necessary documents (including but not
limited to supplementary agreement hereof) in respect of ensuring the pledge
interest of Pledgee in the Pledged Property and the exercise and realization of
the rights thereof.

    

    9.6  In
case of assignment of any Pledged Property as the result of the exercise of the
right to the pledge hereunder, Pledgors guarantee that they will take all
necessary measures to realize such assignment.

    

    9.7  Xianbin
MENG and Xiaobo SHEN undertake individually to bear joint responsibilities with
the other party if the performance of the Article 9 thereof of the other Party
refers to HANGZHOU MYL COMMERCIAL; while HANGZHOU MYL COMMERCIAL undertake
individually to bear joint responsibilities with the other party if the
performance of Article 9 thereof of the other party refers to any Target
Company.

    

    ARTICLE
10 - UNDERTAKINGS BY TARGET COMPANY

     

    10.1 Any
consent, permission, waive or authorization by any third person, or any
approval, permission or exemption by any government authority, or any
registration or filing formalities (if required by laws) with any government
authority to be handled or obtained in respect of the execution and performance
hereof and the Equity Pledge hereunder will be cooperated to handle or obtain by
Target Company to their best and will be ensured to remain full effective during
the valid term of this Agreement.

    

    10.2  Without
the prior written consent by Pledgee, Target Company shall not cooperate to
establish or permit to establish any new pledge or any other encumbrance on the
Pledged Property.

    

    10.3  Without
having Pledgee's prior written consent, Target Company shall not cooperate to
transfer or permit to transfer the Pledged Property.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.4   In
case of any litigation, arbitration or other demand which may
affect  detrimentally the interest of Target Company or Pledgee under
the Transaction Agreements and hereunder or the equity of Target Company as the
Pledged Property, Target Company undertake to notify Pledgee thereof in writing
as soon as possible and promptly and shall take, at the reasonable request of
Pledgee, all necessary measures to ensure the pledge interest of Pledgee in the
Pledged Property.

    

    10.5  Target
Company shall not carry on or permit any act or action which may affect
detrimentally the interest of Pledgee under the Transaction Agreements and
hereunder or the Pledged Property.

    

    10.6  Target
Company shall provide Pledgee with the financial statement of the last calendar
season within the first month of each calendar season, including but are not
limited to the balance sheet, the income statement and the statement of cash
flow.

    

    10.7  Target
Company shall guarantee that they shall, at the reasonable request of Pledgee,
take all necessary measures and execute all necessary documents (including but
not limited to supplementary agreement hereof) in respect of ensuring the pledge
interest of Pledgee in the Pledged Property and the exercise and realization of
the rights thereof.

    

    10.8  In
case of assignment of any Pledged Property as the result of the exercise of the
right to the pledge hereunder, Target Company guarantee that they will take all
necessary measures to realize such assignment.

    

    ARTICLE
11 - ENCUMBRANCE OF FIRST ORDER IN PRIORITY

     

    11.1   Hangzhou
MYL Consulting has the encumbrance of first order in priority on any and all
Pledged Property.  Pursuant to the stipulations of the Transaction
Agreement, any Breaching Event under any Transaction Agreement shall result in
the occurrence of Breaching Event under other Transaction Agreement, Hangzhou
MYL Consulting shall claim the pledge interest hereunder to Pledgor relevant to
the Breaching Event, and be repaid in priority in the proportion of their
respective security amount from the proceeds obtained according to the disposal
of Pledged Property stipulated in Article 4 hereof.

    ARTICLE
12 - CHANGE OF CIRCUMSTANCES

     

    12   As
supplement and subject to compliance with other terms of the Transaction
Agreements and this Agreement, in case that at any time the promulgation or
change of any PRC Law, regulations or rules, or change in interpretation or
application of such laws, regulations and rules, or the change of the relevant
registration procedures enables Pledgee to believe that it will be illegal or in
conflict with such laws, regulations or rules to further maintain the
effectiveness of this Agreement and/or dispose of the Pledged Property in the
way provided herein, Pledgors and Target Company shall, at the written direction
of Pledgee and in accordance with the reasonable request of Pledgee, promptly
take actions and/or execute any agreement or other document, in order
to:

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (1)           keep
this Agreement remain in effect;

    (2)           facilitate
the disposal of the Pledged Property in the way provided herein;
and/or

    (3)           maintain
or realize the intention or the guarantee established hereunder.

    

    ARTICLE
13 - EFFECTIVENESS AND TERM OF THIS AGREEMENT

    

    13.1   This
Agreement shall become effective upon the satisfaction of all of the following
conditions in respect of any Target Company and any Pledgor who holds the equity
of the Target Company:

    

    (1)  this
Agreement is duly executed by Pledgors, the Target Company and the Pledgors who
pledge the equity of the Target Company; and

    

    (2) 
the Equity Pledge hereunder has been legally recorded in the shareholders'
register of the Target Company.

    

    Pledgors
shall provide the registration certification of the Equity Pledge being recorded
in the shareholders' register as mentioned above to Pledgee in a way
satisfactory to Pledgee.

    

    13.2   This
Agreement shall have its valid term until the full performance of the
Contractual Obligations or the full repayment of the Guaranteed
Liabilities.

    

    ARTICLE
14  - NOTICE

     

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

    

    14.2   The
abovementioned notice or other correspondences shall be deemed to have been
delivered when it is transmitted if transmitted by facsimile or telex; it shall
be deemed to have been delivered when it is delivered if delivered in person; it
shall be deemed to have been delivered five (5) days after posting the same if
posted by mail.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
15 – MISCELLANEOUS

    

    15.1 
Pledgee may, upon notice to Pledgors but not necessarily with Pledgors' consent,
assign Pledgee's rights and/or obligations hereunder to any third party;
provided that Pledgors may not, without Pledgee's prior written consent, assign
Pledgors' rights, obligations and/or liabilities hereunder to any third party.
Successors or permitted assignees (if any) of Pledgors shall continue to perform
the obligations of Pledgors under this Agreement.

    

    15.2 
This Agreement shall be made in Chinese and English in quadruplicate, with each
involved Party holding one (1).

    

    15.3 
The formation, validity, execution, amendment, interpretation and termination of
this Agreement shall be subject to PRC Law.

    

    15.4  Any
disputes arising hereunder and in connection herewith shall be settled through
consultations among the Parties, and if the Parties cannot reach an agreement
regarding such disputes within thirty (30) days of their occurrence, such
disputes shall be submitted to China International Economic and Trade
Arbitration Commission Shanghai Branch for arbitration in Shanghai in accordance
with the arbitration rules of such Commission, and the arbitration award shall
be final and binding on all Parties.

    

    15.5  Any
rights, powers and remedies empowered to any Party by any provisions herein
shall not preclude any other rights, powers and remedies enjoyed by such Party
in accordance with laws and other provisions under this Agreement, and the
exercise of its rights, powers and remedies by a Party shall not preclude its
exercise of its other rights, powers and remedies by such Party.

    

    15.6  Any
failure or delay by a Party in exercising any of its rights, powers and remedies
hereunder or in accordance with laws (hereinafter, the "PARTY'S RIGHTS") shall
not lead to a waiver of such rights, and the waiver of any single or partial
exercise of the Party's Rights shall not preclude such Party from exercising
such rights in any other way and exercising the remaining part of the Party's
Rights.

    

    15.7  The
titles of the Articles contained herein shall be for reference only, and in no
circumstances shall such titles be used in or affect the interpretation of the
provisions hereof.

    

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

    

    15.9 
This Agreement shall substitute any other documents on the same subject executed
by relevant Parties hereof once duly executed.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    15.10  Any
amendments or supplements to this Agreement shall be made in writing. Except for
assignment by Pledgee of its rights hereunder according to Article 15.1 of this
Agreement, the amendments or supplements to this Agreement shall take effect
only when properly signed by the Parties to this Agreement. Notwithstanding the
preceding sentence, considering the rights and obligations of Target Company and
Pledgors are severable and independent, in case the amendment or supplement is
intended to have impact upon one Party of the Target Company and part of the
Pledgors who hold the equity interest, the amendment or supplement requires the
consent by the Target Company and the part of the Pledgors only and it is not
required to obtain the consent of other Target Company and other Pledgors (to
the extent the amendment or supplement does not have impact upon such
Pledgor).

    

    15.11
This Agreement shall be binding on the legal successors of the
Parties.

    

    15.12 At
the time of execution hereof, each of Pledgors shall sign respectively a power
of attorney (as set out in Appendix I hereto, hereinafter, the "POWER OF
ATTORNEY") to authorize any person designated by Hangzhou MYL Consulting to sign
on its behalf according to this Agreement any and all legal documents necessary
for the exercise by Pledgee of Hangzhou MYL Consulting's rights hereunder. Such
Power of Attorney shall be delivered to Hangzhou MYL Consulting to keep in
custody and, when necessary, Hangzhou MYL Consulting may at any time submit the
Power of Attorney to the relevant government authority.

    

    15.13
Notwithstanding any provision to the contrary in this Agreement, new companies
except the Target Company and its shareholders can be included as one party of
this Agreement by executing the Acknowledgement Letter in the form of Appendix 3
to this Agreement. The new companies shall enjoy the same rights and obligations
as other Target Companies; the shareholders of the new companies shall enjoy the
same rights and obligations as other Pledgors hereunder. Considering that the
rights and obligations of the Target Company and relevant Pledgors under the
Agreement are severable and independent, the participation of the new target
companies and their shareholders will not affect the rights and obligations of
the original Target Company and relevant Pledgors, the participation of the new
target companies only requires confirmation of Hangzhou MYL Consulting by
signature.Each of the Target Company hereby irrevocably and unconditionally
agree the participation of the new companies and their shareholders and further
confirm that shareholders of any new target companies can pledge their equity of
the new target companies to Hangzhou MYL Consulting according to the stipulation
of this Agreement not necessarily with consent of the original Target Company or
their relevant Pledgors.

    

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remainder of this page is left blank]

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (EXECUTION
PAGE)

    IN
WITNESS HEREOF, the following Parties have caused this Equity Pledge Agreement
to be executed as of the date and in the place first here
abovementioned.

    

    

    

    Xianbin
MENG

    

    Signature
by:  /s/

    

    Xiaobo
SHEN

    

    Signature
by:  /s/

    

    Hangzhou
MYL Commercial Service Co., Ltd.

    

    Signed
by:    /s/

    Name:

    Position:

    

    

    Hangzhou
MYL Business Administration Consulting Co., Ltd.

    Name:

    Position:

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    APPENDIX
I:

    

    FORMAT OF
THE POWER OF ATTORNEY

    

    I/We,
____________, the undersigned, hereby authorize ____________, identity card
number ____________, as my/our duly authorized representative to sign on my/our
behalf all documents necessary or desirous for Hangzhou MYL Business
Administration Consulting Co., Ltd. to exercise their rights under the Equity
Pledge Agreement between Hangzhou MYL Business Administration Consulting Co.,
Ltd., Hangzhou MYL Commercial Service Co., Ltd., and me/us..

    

    

    

    

    Signature:

    Date:

     

     

     

     

    
 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    APPENDIX
II

    

    ACKNOWLEDGEMENT
LETTER

    

    Name:

    ID No.
(for a individual): _______________/or registered address (for an
entity):

    ("PARTICIPATED
PLEDGOR")

    and

    Name of
entity:

    registered
address: ____________________

    ("PARTICIPATED
TARGET COMPANY")

    hereby
agree to participate in the Equity Pledge Agreement dated May 1, 2009 between
Hangzhou MYL Business Administration Consulting Co., Ltd. (hereinafter "HANGZHOU
MYL CONSULTING"), and other relevant parties (hereinafter, "EQUITY PLEDGE
AGREEMENT") as an independent party. Participated Pledgors and Participated
Target Companies pledge the equity of the Participated Target Companies which
constitute ___% of the registered capital of the Participated Target Companies
to Hangzhou MYL Consulting as of the date of the Acknowledgement Letter to
secure the following contractual obligations:

    By
signing this Acknowledgement Letter, the Participated Pledgors and the
Participated Target Company shall make the same undertakings and warranties as
Pledgors and Target Companies do under the Equity Pledge Agreement, agree to
perform the same obligations as the Pledgors and Target Company thereunder, and
admit the rights and obligations of Parties thereunder.

    

    For and
on behalf of

    Participated
Pledgors

    Signed
by:

    Name:

    Position:

    

    For and
on behalf of

    Participated
Target Company

    Signed
by:

    Name:

    Position:                      

    

    For and
on behalf of

    Hangzhou
MYL Business Administration Consulting Co., Ltd.

    Signed
by:

    Name:

    Position:

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