Document:

Unassociated Document

    AGREEMENT FOR INTERIM
PAYMENT

     

    In
consideration of the mutual promises, covenants, terms and conditions herein
contained, LKI and Underwriters (as each are defined below) agree as of December
31, 2009 as follows:

    DEFINITIONS

     

    In this
Interim Payment Agreement, the singular includes the plural, and vice versa. The
following terms as used herein shall be given the following
meanings:

     

    “Agreement”
shall mean this Interim Payment Agreement.

     

    “Underwriters”
shall mean all of the insurers, Names, Underwriters and Syndicates at Lloyd’s,
London, and all of the companies doing business in the London insurance market
or elsewhere, and any other person in their capacity as having severally
subscribed, each in his or its own proportionate share, to the Global Policies
(defined below) and all their past and present subsidiaries and the predecessors
and successors of such subsidiaries; their past and present parent companies,
affiliates and joint ventures and their predecessors and successors, and all its
past, present and future assigns.

     

     “Parties”
shall mean the Underwriters and LKI collectively.

     

    “LKI”
shall mean Lazare Kaplan International Inc., all its past and present
affiliates, subsidiaries and the predecessors and successors of such
subsidiaries; their past and present parent companies, affiliates and their
predecessors, assigns and successors.

     

    The
“Global Policies” shall mean the policies of insurance numbered [Subject to a request for
confidential treatment; Separately filed with the Commission] and [Subject to a request for
confidential treatment; Separately filed with the Commission] subscribed
by Underwriters and issued to LKI.

     

    The
“Angola Policies” shall mean the policies of insurance numbered [Subject to a request for
confidential treatment; Separately filed with the Commission] and [Subject to a request for
confidential treatment; Separately filed with the Commission] subscribed
by Underwriters and issued to LKI.

     

    “Claim”
shall mean the claims submitted by LKI for losses under the Global
Policies.

     

    “Sue and
Labor” shall mean costs and expenses incurred by or on behalf of LKI to take
such measures as were reasonable for the purpose of averting and mitigating its
losses and to otherwise insure that its rights in respect of the Insured
Interest were properly protected.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Insured
Interest” shall mean those interests defined as “Insured Interest” in the Global
Policies.

     

    “Interim
Payment” shall mean a payment made under and by reason of this Agreement for an
amount less than the total amount of all losses sustained by LKI recoverable
under the Global Policies.

     

    “Termination
Date” shall mean the latest date upon which Underwriters (a) pay any such
further indemnity to LKI in return for a final release for the same; (b)
otherwise secure a policy release for the Global Policies with LKI or, in the
event of litigation, between the parties, (c) such litigation is concluded
either through settlement or judgment (after exhaustion of all appeals and
motions).

     

    RECITALS

     

    WHEREAS,  Underwriters
severally subscribed to the Global Policies; and

     

    WHEREAS, LKI timely submitted
Claims under the Global Policies against Underwriters for losses to certain
Insured Interests;

     

    WHEREAS,  LKI has
incurred costs and expenses to investigate the circumstances of the losses and
mitigate the losses as well as mitigate the consequential and collateral damage
to LKI as a result of such losses; and

     

    WHEREAS,  Underwriters
have commenced an investigation into the Claim and said investigation has not
been completed; and

     

    WHEREAS,  the
Parties have entered into a confidentiality agreement, a copy of which is
annexed hereto and made a part hereof; and

     

    WHEREAS,  LKI has
submitted Claims under the Global Policies for amounts in excess of
$140,000,000; and

     

    WHEREAS, Underwriters agree to
make an Interim Payment to Lazare Kaplan International, Inc. of US
$28,000,000.00 United States dollars;

    

    REPRESENTATIONS AND
WARRANTIES

     

    1.           The
Parties represent and warrant that they are duly organized, validly existing,
and in good standing under the laws of the respective jurisdictions where they
are organized and, in respect of Underwriters, are licensed to subscribe to
contracts of insurance. The Parties further represent and warrant that they have
the full power and authority to enter into and perform this Agreement and that
the signatories are authorized to execute this Agreement on behalf of their
respective parties.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.            LKI
represents and warrants that (a) it is the owner of or is otherwise
contractually responsible for the Insured Interest for which it presents its
Claim, (b) subject to the rights of its bankers, it has not assigned, set over,
transferred or hypothecated any right, title or interest to said Insured
Interest to any individual person, firm or corporation, (c) it is entitled to
recover for the Claim, (d) no release has been given to anyone responsible or
potentially responsible for the Losses, and (e) no such release will be given by
LKI without the express written consent of Underwriters.

    

    3.            This
Agreement has been duly executed and delivered by the Parties and constitutes
the legal, valid and binding obligation of the Parties, enforceable against the
other in accordance with its terms, except as such enforceability may be limited
by applicable bankruptcy, insolvency or other similar laws affecting creditors
rights generally and except as rights to specific enforcement may be limited by
the application of equitable principles (whether such equitable principles are
applied in a proceeding at law or in equity).

                

    INTERIM
PAYMENT

     

    4.           Underwriters
shall pay Lazare Kaplan International, Inc $28,000,000 within fourteen (14)
calendar days after receiving a fully executed copy of this
Agreement.  The aforementioned Interim Payment shall be made by means
of a wire transfer to account as set forth in the attached Wire
Instructions.  Except as set forth in Paragraph 11 below, Underwriters
waive and release any right to recover this amount, directly or indirectly by
any means, from LKI either by way of offset, setoff, recoupment, counterclaim or
otherwise.

     

    5.            The
Parties agree that the terms and conditions contained in the Agreement and the
Interim Payment made hereunder are confidential. LKI and Underwriters
agree that they will not publicize, discuss, or disclose, or authorize their
agents, servants, employees, attorneys, or representatives to publicize,
discuss, or disclose, directly or indirectly, orally or in writing,
spontaneously or in response to an inquiry, to any entity or person, including
any party to the Angola Party (other than the Underwriters to the Angola
Policies and their duly authorized representatives and LKI) the terms of the
Agreement and the Interim Payment except that LKI and Underwriters are permitted
to disclose the terms of the Agreement and the Interim Payment to: (a) their
reinsurers, attorneys, accountants, and bankers; (b) the Underwriters to the
Angola Policies and their duly authorized representatives and (c) as otherwise
may be required by law or legal process.

    

    6.            Except
as otherwise specifically set forth herein, this Agreement does not modify,
alter or amend the Global Policies.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    7.            Underwriters
acknowledge that until the Termination Date, the Interim Payment does not
subrogate to Underwriters such rights, claims and interest which LKI may have
against any person, firm or corporation liable for the loss or damage to the
property mentioned above, including but not limited to the right to claim
recovery under any other available insurance respecting the Insured Interest,
and does not authorize Underwriters to sue, compromise or settle in the name of
LKI or otherwise.

    

    8.            Subject
to (a) the execution of any additional binding confidentiality agreements that
either of the Parties may require, (b) such limitations as are applicable by
reason of applicable laws related to the sale or transfer of securities, (c) the
rules of the American Stock Exchange and/or (d) its duties to its shareholders,
LKI will cooperate with Underwriters in the mitigation of the losses under the
Global Policies. However, notwithstanding the foregoing, unless and until the
Termination Date, LKI shall control in its sole discretion any such mitigation
efforts and in no event shall be required to take any action, make any statement
or present any of its officers directors or employees to or in any proceeding,
formal or otherwise which might otherwise adversely affect LKI or subject LKI
and/or its officers, directors or employees to the possibility of claims,
subpoenas, arbitration, investigation, suits or proceedings by third parties for
civil, regulatory, administrative or criminal proceedings.  Nothing in
this document shall constitute a waiver by any of the Parties to any evidentiary
privilege to which they are otherwise entitled to assert.  Further,
nothing in this Agreement shall relieve LKI from its duty to cooperate with
Underwriters investigation into the Claim, as required by the terms of the
Global Policies and at law.

    

    9.           LKI
and Underwriters shall negotiate in good faith and enter in such additional
agreements as may be reasonably necessary to allow Underwriters access to LKI’s
investigation into the losses and , the benefits of the Sue and Labor to
date.  LKI and Underwriters shall meet at such times and places as are
reasonably necessary to discuss the status of LKI’s investigation and Sue and
Labor efforts. But, LKI shall have no obligation to disclose any documents or
information that would require LKI to: a) waive attorney client or a similar
cognizable privilege; b) breach a contract, including but not limited to
contracts with outside consultants or investigators or to disclose material that
is subject to a confidentiality agreement, or (c) would subject LKI or any of
its officers, directors, employees or agents to liability or the potential for
suit. Notwithstanding LKI’s intent and desire to cooperate with Underwriters and
to see Underwriters recoup any payments made under the Global Policies to LKI
from such persons or entities who were the proximate cause of the insured losses
to LKI, Underwriters acknowledge that until the Termination Date, LKI has an
obligation to its shareholders to retain sole control of its efforts to
investigate and mitigate the insured losses and Underwriters shall undertake no
action and make no statements to any third parties that might prejudice, impede,
delay, reduce or adversely affect in any fashion such efforts.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    10.            The
Interim Payment  of the sum of US $28,000,000.00 United States dollars
will be issued solely to Lazare Kaplan International, Inc. whether on account or
otherwise, and shall be credited to Underwriters’ obligations and
responsibilities with respect to the Global Policies only to the extent of
Interim Payment  actually received by Lazare Kaplan International,
Inc..

    

    11.           In
advancing such Interim Payment, Underwriters do not waive any of their rights or
privileges under the Global Policies.  Underwriters reserve their
right to disclaim coverage pursuant to the terms and conditions of its contract
of insurance. Further, this Interim Payment shall not be construed as an
admission of coverage under the Global Policies.   Further, in
accepting such an Interim Payment, LKI does not waive any of its rights or
privileges under the Global Policies and reserve all of its rights under the
Global Policies and arising as a matter of law, except as set forth in paragraph
13 in respect of consequential damages

    

    12.  If,
at any time after the Termination Date should LKI recover the Insured Interests,
or any portion thereof, or receive payment for the Insured Interests for which
it makes claim herein, or receive any insurance proceeds from insurance other
than the Global Policies or Angolan Policies, indemnifying LKI in whole or in
part for the loss of the Insured Interests then in that event LKI shall repay to
Underwriters to the extent of the actual receipt of any such
recovery.  Such repayment shall be by the same terms as set forth in
the Global Policies and Angola Policies.

    

    13.           In
consideration of the Interim Payment, the payment of the amounts for Sue
and Labor and the commitment to reach
a decision by May 3, 2010 whether there is coverage for the Claims and if so,
the amount of payment for the same, LKI hereby agrees to
waive all rights at law, equity, or otherwise, to pursue against Underwriters
any claims for consequential, extra-contractual, or such other claims as may
sound in tort or any other legal theory, and hereby agrees to pursue only such
policy indemnity as exceeds the amount of the Interim Payment made hereunder.
For the avoidance of doubt, there can be no claim against Underwriters for
consequential loss.

     

    SUE AND
LABOR

     

    14.           LKI
shall make a submission of Sue and Labor claims under the Global Policies to
Underwriters by January 18, 2010, Underwriters have the right to review and
audit such submission. Thereafter, Underwriters shall pay said claim for Sue and
Labor no later than February 1, 2010,   Underwriters shall have
the right to make reasonable inquiry of  LKI with respect to such Sue
and Labor submission including meeting with LKI and requesting supporting
documentation.  LKI specifically reserves its right to make further
submissions of Sue and Labor as such amounts are incurred or bills received
until the Termination Date and Underwriters shall have similar rights to review
and audit such further submissions.  Underwriters will pay all such further
submissions of Sue and Labor within a reasonable period of time after actual
receipt of supporting documentation but in no event later than May 3,
2010;  thereafter, the parties reserve all of their rights with respect to
Sue and Labor as set forth in the Global Policies. It is understood that LKI
shall have no obligation to provide or disclose to Underwriters any
documentation or information that may breach attorney
client  privilege or another cognizable privilege or any other
material that is otherwise subject to a confidentiality agreement or would
subject LKI or any of its officers, directors or employees or agents to
liability or the potential for suit.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ACCORD AND
SATISFACTION

     

    15.           The
Parties hereto expressly agree and acknowledge that this Agreement is not in
full and final accord, satisfaction and payment of the claims and disputes
between them; and that each of the Parties has entered into this Agreement
freely and voluntarily after consultation with independent counsel of each
party’s own choosing.

     

    GOVERNING
LAW

    

    16.           This
Agreement shall be interpreted in accord with the laws of the State of New York
without reference to its conflicts of laws rules and shall in all respects be
governed, construed, applied, and enforced in accordance with the laws of New
York.

     

    17.           The Parties agree that the
federal or New York State courts sitting in New York County, New York shall have
exclusive jurisdiction over all disputes between them with respect to the
interpretation and enforcement of this Agreement, hereby expressly consenting to
and agreeing not to contest such exclusive jurisdiction and hereby irrevocably
consent to the personal and subject-matter jurisdiction of any such court for
all purposes necessary to effectuate this Paragraph.  Each
Party agrees not to assert, by way of motion, as a defense, or otherwise, in any
such action, suit or proceeding, any claim that such party is not subject
personally to the jurisdiction of such court, that its property is exempt or
immune from attachment or execution, that the action, suit or proceeding is
brought in an inconvenient forum, that the venue of the action, suit or
proceeding is improper or that any dispute regarding this Agreement or the
subject matter hereof may not be enforced in or by such court.  Each
Party further irrevocably submits to the jurisdiction of any such court in any
such action, suit or proceeding.  Any and all service of process and
any other notice in any such action, suit or proceeding shall be effective
against either Party if given personally or by registered or certified mail,
return receipt requested, or by any other means of mail that requires a signed
receipt, postage prepaid.  Nothing herein contained shall be deemed to
affect the right of either Party to serve process in any manner permitted by
law.  Nothing in this Paragraph alters, modifies, amends, discharges
or deletes those provisions of the Global Policies or Angola Policies that sets
forth applicable law and jurisdiction for the resolution of any disputes or
claims regarding or under the Global Policies or Angola Policies.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ENTIRE
AGREEMENT

     

    18.           This
Agreement constitutes the entire understanding between the Parties and
supersedes any and all prior and contemporaneous negotiations and agreements of
the Parties regarding the Interim Payment.

     

    MODIFICATION

     

    19.           Neither
this Agreement nor any term set forth herein may be modified, changed, waived,
discharged, or terminated except by a writing signed by the
Parties.

     

    NO
ADMISSION

     

    20.           Nothing
contained in this Agreement, nor the Agreement itself, shall be admissible in
any proceedings between the Parties, except to enforce the terms
hereof.  Nothing contained in this Agreement shall be deemed to
constitute an admission of wrongdoing or liability by the Parties, or coverage
under the Global Policies issued by Underwriters.  This Agreement does
not constitute, and shall not be construed to reflect, the adoption of any
coverage position by the Parties, nor will it have any bearing upon or relevance
to the interpretation or meaning of the terms, definitions, conditions or
exclusions contained in any policies of insurance.  This Agreement
does not reflect upon the Parties view as to rights and obligations with respect
to matters or persons outside the scope of this Agreement.  This
Agreement is without prejudice to positions taken by Underwriters with regard to
other insureds or claimants.  The Parties specifically disavow any
intention to create rights in third parties under, or in relation to, this
Agreement.

     

    EXECUTION

     

    21.           This
Agreement may be executed in identical counterparts.  Each counterpart
hereof shall be deemed to be an original instrument, but all counterparts hereof
taken together shall constitute a single document.  Facsimile
signatures shall be deemed originals.

     

    22.  The
Parties agree to execute any and all documents reasonably necessary to implement
the terms and conditions of this Agreement.

     

    SEVERABILITY

     

    23.           If
any provision of this Agreement other than Paragraph 4 is held to be illegal,
invalid or unenforceable under any present or future law, (a) such provision
will be fully severable, (b) this Agreement will be construed and enforced as if
such illegal, invalid or unenforceable provision had never comprised a part
hereof, and (c) the remaining provisions of this Agreement will remain in full
force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    CONSTRUCTION

     

    24.           The
Parties understand and agree that neither of them shall be deemed to be the
drafter hereof for purposes of construction of this Agreement.

     

    25           The
Parties acknowledge that, except as provided herein, no representation of fact
or opinion has been made by any of the Parties, or anyone on their behalf, to
induce this compromise and Interim Payment.

     

    UNITED STATES SECURITIES
LAWS

     

    26.           Underwriters
acknowledge that LKI is a publically traded company and is regulated, inter
alia, by the laws and regulations of the United States  as well as the
exchange on which its stock is presently traded.  At no time will
Underwriters seek LKI to make or refrain from making any statement or for LKI to
act or refrain from acting if such conduct would be in violation of such laws or
regulations.  Additionally, until the Termination Date those
provisions of paragraphs 5 and  6 of the Confidentiality Agreement
between the parties dated December 23, 2009 shall remain in full force and
effect.

     

    COSTS OF
ENFORCEMENT

     

    27.           In
the event of any dispute between the Parties regarding the enforcement of this
Agreement or any provision hereof, the Party prevailing in such dispute shall be
paid all of its fees and costs, including attorney fees related to such
dispute.

     

    BINDING
EFFECT

     

    28.           This
Agreement and all the provisions contained herein shall be binding upon and
inure to the benefit of the Parties, their respective heirs, successors and
assigns, including but not limited to any receiver, trustee in bankruptcy,
representative or other person appointed under foreign or domestic bankruptcy, receivership, or similar proceedings, except as otherwise
set forth herein.

     

    29.           Nothing
in this Agreement shall inure to the benefit of any third party and shall only
inure to the benefit of Underwriters in their capacity as having severally
subscribed, each in his or its own proportionate share, to the Global
Policies.

    

    Signed:                      

    __/s/______________________

    

    By:_______________________

    Name and Title

    

    STATE OF
 , COUNTY
OF ____________     SS.:

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    On                          ,
2009, before me personally came __________________, to me known, and known to me
to be the individual(s) described in, and who executed the foregoing RELEASE,
and acknowledged to me that he executed the same.

    

    

    ___________________________

    NOTARY
PUBLIC

    

    

    Signed:                     /s/_________________________

    Underwriters

    By:           Dennis
M. Wade

    Attorney-In-Fact

    

    

    STATE OF
NEW YORK, COUNTY OF NEW
YORK       SS.:

    

    On                              ,
2009, before me personally came Dennis M. Wade, to me known, and known to me to
be the individual(s) described in, and who executed the foregoing RELEASE, and
acknowledged to me that he executed the same.

    

    
      ___________________________

      NOTARY
PUBLICUnassociated Document

    STOCK
PURCHASE AGREEMENT

    

    This
Stock Purchase Agreement (the “Agreement”) dated as
of April 29, 2010, has been executed by Wu Shi Xin (the “Purchaser”) and
ChinaCast Education Corporation, a Delaware corporation (the “Company”).

    

    WHEREAS,
the Purchaser wishes to purchase 3,735,734 shares (the “Shares”) of common
stock, $.0001 par value per share of the Company (the “Common Stock) on the
terms and subject to the conditions set forth herein; and

    

    WHEREAS,
the Company wishes to sell the Shares to Purchaser on the terms and subject to
the conditions set forth herein; and

    

    WHEREAS,
the offering and sale of the Shares by the Company to the Purchaser is being
made in reliance upon the provisions of Regulation S (“Regulation S”)
promulgated by the Securities and Exchange Commission (the “SEC”) under the
Securities Act of 1933, as amended (the “Securities
Act”).

    

    NOW
THEREFORE, in consideration of the mutual promises, representations and
warranties set forth herein, the Company and the Purchaser hereby agree as
follows.

    

    1.           Agreement to Purchase
Shares

    

              
1.1    Purchase and Issuance of the
Common Stock. The Purchaser hereby agrees to purchase the Shares from the
Company at a price of US$7.85 per Share or a total of US$29,325,511.90
(RMB200,000,000.00) (the “Share
Consideration”).  At the Closing, Purchaser will deliver to the
Company, the Share Consideration and the Company will instruct its transfer
agent to issue the Shares in the name of the Purchaser and/or in such nominee
name(s) as the Purchaser shall designate in writing to the Company; provided, however,
that, the Company shall not be required to issue any Shares in the name of any
such nominee(s) unless such nominees have executed and delivered to the Company,
a Letter of Representations on the form attached hereto as Exhibit
A.

    

    1.2    Closing.  The
closing for the sale of the Shares to the Purchaser shall take place at the
offices of the Company on April 29, 2010 (the “Closing”), or at such
other time and/or such other place as the Company may determine in its sole and
absolute discretion.

    

    2.           Representations and Warranties of
the Purchaser

    

    The Purchaser represents and warrants
to the Company that:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.1    No Government Recommendation
or Approval.  The Purchaser understands that no United States
federal or state agency or similar agency of any other country, has passed upon
or made any recommendation or endorsement of the Company or the offering and
sale of the Shares.

    

    2.2    Not a “U.S.
Person”.  The Purchaser is not a “U.S. Person” as defined in
Rule 902 of Regulation S promulgated under the Securities Act, was not
organized under the laws of any United States jurisdiction, and was not formed
for the purpose of investing in securities not registered under the Securities
Act.

    

    2.3    Intent. The Purchaser
is purchasing the Shares solely for investment purposes, for the Purchaser’s own
account and not for the account or benefit of any U.S. person, and not with a
view towards the distribution or dissemination thereof and the Purchaser has no
present arrangement to sell the Shares to or through any person or
entity.  The Purchaser understands that the Shares must be held
indefinitely unless such Shares are resold in accordance with the provisions of
Regulation S, are subsequently registered under the Securities Act or an
exemption from registration is available.

    

    2.4    Restrictions on
Transfer.  The Purchaser understands that the Shares are being
offered in a transaction not involving a public offering in the United States
within the meaning of the Securities Act.  The Shares have not been
registered under the Securities Act, and, if in the future the Purchaser decides
to offer, resell, pledge or otherwise transfer the Shares, such Shares may be
offered, resold, pledged or otherwise transferred only (A) pursuant to an
effective registration statement filed under the Securities Act, (B) to a
non-U.S. person in an offshore transaction in accordance with Rule 903 or Rule
904 of Regulation S of the Securities Act, (C) pursuant to the resale
limitations set forth in Rule 905 of Regulation S, (D) pursuant to an exemption
from registration under the Securities Act provided by Rule 144 thereunder (if
available) or (E) pursuant to any other exemption from the registration
requirements of the Securities Act, and in each case in accordance with any
applicable securities laws of any state of the United States or any other
jurisdiction. The Purchaser acknowledges, agrees and covenants that it will not
engage in hedging transactions with regard to the Shares prior to the expiration
of the distribution compliance period specified in Rule 903 of Regulation S
promulgated under the Act, unless in compliance with the Securities Act. The
Purchaser agrees that if any transfer of the Shares or any interest therein is
proposed to be made, as a condition precedent to any such transfer, the
transferor may be required to deliver to the Company an opinion of counsel
satisfactory to the Company.  Absent registration or another exemption
from registration, the Purchaser agrees that it will not resell the securities
constituting the Shares to U.S. Persons or within the United
States.

    

    
      
        
        

      

      
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    2.5.    Accredited and Sophisticated
Investor.

    

    (i)          The
Purchaser is familiar with the term “accredited investor” as defined in
Regulation D promulgated under the Securities Act and is an “accredited
investor” within the meaning of such term in Regulation D.

    

    (ii)          The
Purchaser is sophisticated in financial matters and is able to evaluate the
risks and benefits of the investment in the Shares.

    

    (iii)          The
Purchaser is able to bear the economic risk of his investment in the Shares for
an indefinite period of time because none of the Shares have been registered
under the Securities Act and therefore cannot be sold unless subsequently
registered under the Securities Act or an exemption from such registration is
available.

    

    2.6    Independent
Investigation.  The Purchaser, in making the decision to
purchase the Shares, has relied upon an independent investigation of the Company
and has not relied upon any information or representations made by any third
parties or upon any oral or written representations or assurances from the
Company, its officers, directors or employees or any other representatives or
agents of the Company, other than as set forth in this Agreement. The Purchaser
is familiar with the business, operations and financial condition of the Company
and has had an opportunity to ask questions of, and receive answers from, the
Company’s officers and directors concerning the Company and the terms and
conditions of the offering of the Shares and has had full access to such other
information concerning the Company as the Purchaser has
requested.  The Purchaser has had access to all reports, schedules,
forms , statements and other documents required to be filed by the Company under
the Securities Act and the Securities Exchange Act of 1934, as amended (the
“Exchange
Act”), including pursuant to Section 13(a) and 15(d) of the Exchange Act
(the foregoing materials and documents, including the exhibits thereto and the
documents incorporated by reference therein, shall be collectively referred to
herein as the “SEC
Reports”).

    

    2.7    Authority.  This
Agreement has been validly authorized, executed and delivered by the Purchaser
and is a valid and binding agreement of the Purchaser enforceable against the
Purchaser in accordance with its terms, subject to the general principles of
equity and to bankruptcy or other laws affecting the enforcement of creditors’
rights generally.  The execution, delivery and performance of this
Agreement by the Purchaser does not and will not conflict with, violate or cause
a breach of (i) the memorandum of association or articles of association of the
Purchaser, or other comparable organizational documents of Purchaser, (ii) any
agreement, contract or instrument to which the Purchaser is a party or by which
the assets of Purchaser or bound or (iii) any law, rule or regulation of any
governmental or regulatory authority to which Purchaser is subject.

    

    2.8    No Legal Advice from
Company.  The Purchaser acknowledges that it has had the
opportunity to review this Agreement and the transactions contemplated by this
Agreement and the other agreements entered into between the parties hereto with
the Purchaser’s own legal counsel and investment and tax
advisors.  Except for any statements or representations of the Company
made in this Agreement and the other agreements entered into between the parties
hereto, the Purchaser is relying solely on such counsel and advisors and not on
any statements or representations of the Company or any of its representatives
or agents for legal, tax or investment advice with respect to this investment,
the transactions contemplated by this Agreement or the securities laws of any
jurisdiction.

    

    
      
        
        

      

      
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    2.9    Reliance on Representations
and Warranties.  The Purchaser understands that the Shares are
being offered and sold to the Purchaser in reliance on specific provisions of
United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of the representations, warranties, agreements,
acknowledgments and understandings of the Purchaser set forth in this Agreement
in order to determine the applicability of such provisions.

    

    2.10    No
Advertisements.  The Purchaser is not purchasing the Shares as
a result of or subsequent to any advertisement, article, notice or other
communication published in any newspaper, magazine, or similar media or
broadcast over television or radio, or presented at any seminar or
meeting.

    

    3.           Representations and Warranties of
the Company

    

    The
Company represents and warrants to the Purchaser that:

    

    3.1    Valid Issuance of Capital
Stock. The shares of Common Stock comprising the Shares will, when issued
in accordance with the terms of this Agreement, be duly authorized, validly
issued, fully paid and non-assessable.

    

    3.2    Organization and
Qualification.  The Company is a corporation duly incorporated
and existing in good standing under the laws of the state of Delaware and has the requisite
corporate power to own its properties and assets and to carry on its business as
now being conducted.

    

    3.3    Authorization;
Enforcement.  (i) The Company has the requisite corporate power
and authority to enter into and perform its obligations under this Agreement and
to issue the Shares in accordance with the terms hereof, (ii) the execution,
delivery and performance of this Agreement by the Company and the consummation
by it of the transactions contemplated hereby have been duly authorized by all
necessary corporate action, and no further consent or authorization of the
Company or its Board of Directors or stockholders is required, and (iii) this
Agreement constitutes valid and binding obligations of the Company enforceable
against the Company in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, fraudulent conveyance,
moratorium, reorganization, or similar laws relating to, or affecting generally
the enforcement of, creditors’ rights and remedies or by equitable principles of
general application and except as enforcement of rights to indemnity and
contribution may be limited by federal and state securities laws or principles
of public policy.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    3.4    No
Conflicts.  To the knowledge of the Company, the execution,
delivery and performance of this Agreement and the consummation by the Company
of the transactions

    contemplated
hereby do not materially (i) result in a violation of the Company’s Certificate
of Incorporation or By-Laws or (ii) conflict with, or constitute a default under
any agreement, indenture or instrument to which the Company is a
party.  Other than any SEC or state securities filings or filings with
the Nasdaq Stock Market, which may be required to be made by the Company
subsequent to the Closing, and any registration statement which may be required
to be filed pursuant to Section 4 of this Agreement, the Company is not required
under federal, state or local law, rule or regulation to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental agency or self-regulatory entity in order for it to perform any of
its obligations under this Agreement or issue the Shares in accordance with the
terms hereof.

    

    3.5    Line of
Business  The Company’s business is as described in its Annual
Report on Form 10-K for its fiscal year ended December 31, 2009 and other
subsequently filed SEC Reports.

    

    4.           Registration
Rights

    

    4.1    Request for
Registration. At any time on or after October 1, 2010, the Purchaser may
make a written demand for registration under the Securities Act of the resale of
all of their Shares (a “Demand
Registration”). Any demand for a Demand Registration shall specify the
number of shares of Shares proposed to be sold and the intended method(s) of
distribution thereof.  The Company shall not be obligated to effect
more than one (1) Demand Registration under this Agreement in respect of
Shares.  The Company shall, as expeditiously as possible and in any
event within thirty (30) days after receipt of a request for a Demand
Registration prepare and file with the Commission a registration statement on
any form for which the Company then qualifies or which counsel for the Company
shall deem appropriate and which form shall be available for the sale of all
Shares to be registered thereunder in accordance with the intended method(s) of
distribution thereof, and shall use its reasonable efforts to cause such
registration statement to become and remain effective for no less than one year
from its effectiveness date; provided, however, that the
Company shall have the right to defer any Demand Registration for up to thirty
(30) days, if the Company shall furnish to the holders a certificate signed by
the Chief Executive Officer of the Company stating that, in the good faith
judgment of the Board of Directors of the Company, it would be materially
detrimental to the Company and its shareholders for such registration statement
to be effected at such time; provided further, however, that the
Company shall not have the right to exercise the right set forth in the
immediately preceding proviso more than twice in any 365-day period in respect
of a Demand Registration hereunder.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    4.2    Effective
Registration. A registration will not count as a Demand Registration
until the registration statement is filed with the SEC with respect to such
Demand Registration has been declared effective and the Company has complied
with all of its obligations under this Agreement with respect thereto; provided, however, that if,
after such registration statement has been declared effective, the offering of
Shares pursuant to a Demand Registration is interfered with by any stop order or
injunction of the SEC or any other governmental agency or court, the
registration statement with respect to such Demand Registration will be deemed
not to have been declared effective, unless and until, (i) such stop order or
injunction is removed, rescinded or otherwise terminated, and (ii) the Purchaser
thereafter elects to continue the offering

    

    4.3    Listing. The Company
shall use its reasonable  best efforts to cause all Shares included in
a Demand Registration to be listed on such exchanges or otherwise designated for
trading in the same manner as similar securities issued by the Company are then
listed or designated or, if no such similar securities are then listed or
designated

    

    4.4    Obligation to Suspend
Distribution. Upon receipt of any notice from the Company of (x) either
(i) the issuance or threatened issuance by the SEC of any stop order or
(ii) any request by the SEC for any amendment or supplement to a
registration statement or any prospectus relating thereto or for additional
information or (y) the occurrence of an event that, in the good faith judgment
of the Company requires the preparation of a supplement or amendment to such
registration statement or prospectus so that, as thereafter delivered to the
purchasers of the Shares covered by such registration statement, such prospectus
will not contain an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, the Company shall promptly make available to the
Purchaser any such supplement or amendment, the Purchaser shall immediately
discontinue disposition of the Shares pursuant to the registration statement
covering the Shares until such holder receives such supplemented or amended
prospectus.

    

    4.5    Registration
Expenses. The Company shall bear all costs and expenses incurred in
connection with any Demand Registration and all expenses incurred in performing
or complying with its other obligations under this Section 4, whether or not the
registration statement becomes effective, including, without limitation: (i) all
registration and filing fees; (ii) fees and expenses of compliance with
securities or “blue sky” laws (including fees and disbursements of counsel in
connection with blue sky qualifications of the Shares); (iii) printing expenses;
(iv) the Company’s internal expenses (including, without limitation, all
salaries and expenses of its officers and employees); (v) the fees and expenses
incurred in connection with the listing of the Shares; and (vi) fees and
disbursements of counsel for the Company and fees and expenses for independent
certified public accountants retained by the Company. Notwithstanding the
foregoing, the Company shall have no obligation to pay (i) any underwriting
discounts or selling commissions attributable to the Shares being sold by the
Purchaser, which underwriting discounts or selling commissions shall be borne by
the Purchaser or (ii) any fees or expenses of counsel to the
Purchaser.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    4.6    Information. The
Purchaser hereby agrees to provide such information as may reasonably be
requested by the Company, in connection with the preparation of any registration
statement, including amendments and supplements thereto, in order to effect the
registration of any Shares under the Securities Act pursuant to this Section 4
and in connection with the Company’s obligation to comply with federal and
applicable state securities laws.

    

    5.           Legends;
Denominations

    

    5.1    Legend.  The
Company will issue the Shares purchased by the Purchaser in the name of the
Purchaser and in such denominations to be specified by the Purchaser prior to
the Closing.  The Shares will bear the following legend (the “Legend”), and
appropriate “stop transfer” instructions:

    

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND THESE SECURITIES MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT FILED UNDER THE SECURITIES ACT, (B) TO A
NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE
904 OF REGULATION S UNDER THE SECURITIES ACT, (C) PURSUANT TO THE RESALE
LIMITATIONS SET FORTH IN RULE 905 OF REGULATIONS S UNDER THE SECURITIES ACT, (D)
PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE) OR (E) PURSUANT TO ANY OTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
JURISDICTION. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE
CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    5.2    Purchaser’s
Compliance.  Nothing in this Section 5 shall affect in any way
the Purchaser’s obligations and agreement to comply with all applicable
securities laws upon resale of the Shares.

    

    5.3    Company’s Refusal to
Register Transfer of Shares.  The Company shall refuse to
register any transfer of the Shares not made in accordance with the provisions
of Regulation S, pursuant to an effective registration statement filed under the
Securities Act, or pursuant to an available exemption from the registration
requirements of the Securities Act.

    

    6.          Governing Law; Jurisdiction;
Waiver of Jury
Trial

    

    This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York.  The parties hereto hereby waive any right to a
jury trial in connection with any litigation pursuant to this Agreement and the
transactions contemplated hereby.

    

    7.           Assignment; Entire Agreement;
Amendment

    

    7.1    Assignment.  Neither
this Agreement nor any rights hereunder may be assigned by any party to any
other person other than by Purchaser to a person agreeing to be bound by the
terms hereof.

    

    7.2    Entire Agreement;
Amendment.  This Agreement and any other documents delivered
pursuant hereto constitute the full and entire understanding and agreement
between the parties with regard to the subject matter hereof, and no party shall
be liable or bound to any other party in any manner by any warranties,
representations or covenants except as specifically set forth in this
Agreement.  Except as expressly provided in this Agreement, neither
this Agreement nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the party against whom
enforcement of any such amendment, waiver, discharge, or termination is
sought.

    

    8.           Notices;
Indemnity

    

    8.1    Notices. Unless
otherwise provided herein, any notice or other communication to a party
hereunder shall be sufficiently given if in writing and personally delivered or
sent by facsimile with copy sent in another manner herein provided or sent by
courier (which for all purposes of this Agreement shall include Federal Express,
UPS or other recognized overnight courier) or mailed to said party by certified
mail, return receipt requested, at its address provided for herein or such other
address as either may designate for itself in such notice to the other and
communications shall be deemed to have been received when delivered personally
on the scheduled arrival date when sent by next day or 2-day courier service or
if sent by facsimile upon receipt of confirmation of transmittal or, if sent by
mail, then three days after deposit in the mail.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    8.2    Indemnification.  Each
party shall indemnify the other against any loss, cost or damages (including
reasonable attorney’s fees and expenses) incurred as a result of such party’s
breach of any representation, warranty, covenant or agreement in this
Agreement.

    

    9.           Counterparts

    

    This
Agreement may be executed in any number of counterparts, each of which shall be
enforceable against the parties actually executing such counterparts, and all of
which together shall constitute one instrument.

    

    10.           Survival;
Severability

    

    The
representations, warranties, covenants and agreements of the parties hereto
shall survive the Closing.  In the event that any provision of this
Agreement becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, this Agreement shall continue in full force and
effect without said provision; provided that no such severability shall be
effective if it materially changes the economic benefit of this Agreement to any
party.

    

    11.           Titles and
Subtitles

    

    The
titles and subtitles used in this Agreement are used for convenience only and
are not to be considered in construing or interpreting this
Agreement.

    

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK.]

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the date first above written.

    

    
      
        	 	Mr.
      Wu Shi Xin	 
	 	 	 	 
	
                 

              	By:
      /s/
      Wu Shi Xin	 
	 	PRC
      Passport No:  XXXXXX	 
	 	Address:  	
                Flat
      D, 5/F., Ho Fai Building,

                Block
      2, 218-224 Sai Lau Kok Road,

                Tsuen
      Wan, NT, Hong Kong

              	 
	 	 	 	 

      

    
      	 	CHINACAST
      EDUCATION CORPORATION	 
	 	 	 	 
	
               

            	
              By:
      

            	/s/
      Ron Chan Tze Ngon	 
	 	Name:	Ron
      Chan Tze Ngon	 
	 	Title:	Chairman
      and Chief Executive Officer	 
	 	 	 	 

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Exhibit
A-- Form of Letter of Representations for Nominees

     

    [Date]

     

    To:

     

    Chinacast Education
Corporation

     

    Dear
Sirs,

     

    The
undersigned (the “Investor”),
as a nominee of Mr. Wu Shi Xin (the “Purchaser”) to receive shares
of common stock, par value $0.0001 per share (the “Shares”) of Chinacast
Education Corporation, a Delaware corporation (the “Company”), under a Share Purchase
Agreement dated as of April 29, 2010 (the “Agreement”) by and between the
Purchaser and the Company, hereby represents and warrants to the Company as
follows:

     

    
      	
              1.

            	
              The
      Investor is not a “U.S. person” as that term is defined in Rule 902(k) of
      Regulation S promulgated under the Securities Act of 1933 (the “Securities Act”), meaning that the
      Investor is not (i) a natural person resident in the United States, (ii) a
      partnership or corporation organized or incorporated under the laws of the
      United States, (iii) an estate of which any executor or administrator is a
      U.S. person, (iv) a trust of which any trustee is a U.S. person, (v) any
      agency or branch of a foreign entity located in the United States, (vi)
      any non- discretionary account or similar account (other than an estate or
      trust) held by a dealer or other fiduciary for the benefit or account of a
      U.S. person, (vii) any discretionary account or similar account (other
      than an estate or trust) held by a dealer or other fiduciary organized,
      incorporated, or (if an individual) resident in the United States, or
      (viii) a partnership or corporation organized or incorporated under the
      laws of a jurisdiction outside the United States but formed by a U.S.
      person principally for the purpose of investing in securities not
      registered under the Securities
Act.

            

    

     

    
      	
              2.

            	
              The
      Investor is not purchasing the Shares for the account or benefit of any
      U.S. person, or with a view towards distribution to any U.S. person, in
      violation of the registration requirements of the Securities
      Act.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              3.

            	
              The
      Investor will make all subsequent offers and sales of the Shares either
      (x) outside of the United States in compliance with Regulation S; (y)
      pursuant to a registration under the Securities Act; or (z) pursuant to an
      available exemption from registration under the Securities Act.
      Specifically, the Investor will not resell the Shares to any U.S. person
      or within the United States prior to the expiration of a period commencing
      on the closing date of the sale of the Shares pursuant to the Agreement
      and ending on the date that is six months thereafter, except pursuant to
      registration under the Securities Act or an exemption from registration
      under the Securities Act.

            

    

     

    
      	
              4.

            	
              The
      Investor did not receive an offer to purchase the Shares from any person
      at any time when the Investor was physically present in the United States,
      and the Investor has executed the Agreement outside of the United
      States.

            

    

     

     

    
      
        
          	 	 	 	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 

        

      

    

     

    
      	 	

              Place
      of Residency and/or Principal Place of 

              Business
      of Investor:

                  British
      Virgin Islands

              Address of
      Investor:

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