Document:

Form of Equity Pledge Agreement

 EXHIBIT 10.17 
 Equity Pledge Agreement 
 This Equity Pledge Agreement (hereinafter referred to as “this
Agreement”) is entered into on                     , 2006 in
                                , the People’s Republic of China (hereinafter
referred to as the “PRC”) by and between the following parties: 
 Party A: The Pledgee
hereunder 
                 Acorn Information Technology (Shanghai) Co., Ltd.

                 The legal address: Suite 669-05, Building No. 2, 351 Guo
Shoujing Road, Zhangjiang Hi-Tech Park, Shanghai 
                 The legal
representative: Yang Dongjie 
 Party B: The Pledger hereunder 
                 Yang Dongjie 
                 The number of the ID card: 140106196803232637

                 The domicile address: Room 301,
Apt 6, Building 1, No.5 North Jia Heping Li, Chaoyang District, Beijing and 
                 He Chenghong 
                 The number of the ID card: 610113196410102199 
                 The domicile address: Room 602, No. 41, Lane 2885, Qixin Road, Minhang District, Shanghai 
 Party A and Party B shall be hereinafter referred to collectively as the “Parties” and individually as a “Party”.

 Whereas: 
  

	 	(1)	Party A is a wholly foreign-owned enterprise duly organized and validly existing under the laws of the People’s Republic of China, which has the status of an independent legal
person and is engaged mainly in development of computer software and hardware, information technology data processing, and technology consultancy services; 

  

	 	(2)	Party B is Yang Dongjie and He Chenghong, shareholders of
                                        
                    , who hold              and
             of the equity interest in
                                , respectively; 

  

					
		 	1	 	

	 	(3)	Party A and                  entered into a certain Exclusive Technology Services Agreement
(hereinafter referred to as the “Services Agreement”) on                 , 2006, and the Parties know the contents of that agreement and have a
thorough understanding of its meaning; 

  

	 	(4)	Party B agrees to pledge to Party A all the equity interest it holds in                 as
security for the payment by                  of the fee for the services Party A shall provide under the Services Agreement; 

  

	 	(5)	The Parties entered into a certain Loan Agreement (hereinafter referred to as the “Loan Agreement”) on
                , 2006 and a certain Operation and Management Agreement (hereinafter referred to as the “Management Agreement”) on
                , 2006. Party B shall pledge all the equity interest it holds in
                 to Party A as security for Party B’s performance of its obligations under the Loan Agreement and the Management Agreement in addition to
security for the payment by                      of the fee for the services Party A shall provide under the Services Agreement.

 In consideration of the premises as set forth above as well as the mutual undertakings as set forth below, the Parties
hereby agree to the following: 
  

	Article 1	Pledge of Equity Interest 

  

	 	(1)	Party B agrees to pledge to Party A all the equity interest it holds in
                        . 

  

	 	(2)	If Party B proposes to pledge to any third party the equity interest it holds in
                        , it shall provide such third party with all the true information on such equity pledge and such
third party shall automatically inherit all the rights and obligations thereunder. 

  

	Article 2	Delivery and Custody of the Equity Interest to Be Pledged Hereunder 

  

	 	(1)	Within seven business days of execution hereof, Party B shall hand over the certificates in evidence of its investment in the equity interest of
                 and the shareholders’ register of
                     it holds to Party A for its keeping. 

  

	 	(2)	During the term of the equity pledge hereunder, any income that may be derived from such equity interest shall belong to Party A. 

  

	Article 3	Party B’s Representations and Warranties 

  

	 	(1)	Party B has fully performed its obligation to make a capital contribution to                 
in accordance with the Company Law of the People’s Republic of China and the articles of association of                  and it is the lawful owner of
the equity interest to be pledged hereunder. 

  

					
		 	2	 	

	 	(2)	No third party shall interfere in Party A’s exercise of the pledge right hereunder. 

  

	 	(3)	Party A shall have the right to dispose of or transfer the equity interest to be pledged hereunder in accordance with the provisions hereof. 

  

	 	(4)	Apart from the pledge hereunder, Party B has not created any other pledge or encumbrance on the equity interest to be pledged hereunder. 

  

	Article 4	Party B’s Undertakings 

 For Party A’s
benefit, Party B undertakes that, during the term hereof, 
  

	 	(1)	without Party A’s previous written consent, it shall not transfer the equity interest to be pledged hereunder or create any other pledge or encumbrance on such equity interest;

  

	 	(2)	within seven business days of execution hereof, it shall complete the procedure for registration of this Agreement and the pledge of the equity interest hereunder with the authority
in charge of industrial and commercial administration and any other competent authority with which                      registered its
establishment; 

  

	 	(3)	it shall comply with all the laws and regulations applicable to the pledge of the equity interest hereunder and, within five days of receipt of any notice, order or suggestion the
relevant authorities issue or make, forward such notice, order or suggestion to Party A and comply with them at Party A’s reasonable request; 

  

	 	(4)	If there occurs any such event as has adversely affected, or will adversely affect, Party A’s pledge right or any of Party B’s warranties or other obligations hereunder,
it shall promptly notify Party A of such occurrence; 

  

	 	(5)	it has not taken or, without Party A’s written consent, will not take any action that will adversely affect the status of Party B’s assets, such as raising of loans,
provision of security, or purchase or sale of any major assets; 

  

	 	(6)	none of Party B or any of its successors or representatives or any other third party will interfere in, or cause any damage to, the pledge of the equity interest to Party A
hereunder; and 

  

	 	(7)	it will comply with and perform all of its warranties, undertakings, agreements and representations hereunder and the provisions hereof. If Party B violates, or fails fully to
perform, any of the provisions hereof, Party A shall have the right to require that Party B compensate it for any losses it may suffer as a result. 

  

					
		 	3	 	

	Article 5	Realization of the Pledge Right 

  

	 	(1)	Without Party A’s previous written consent, Party B shall not transfer the equity interest to be pledged hereunder before
                                 has paid in full the fee for the technical
services under the Services Agreement within a reasonable time limit and Party B has performed its obligations under the Loan Agreement and the Management Agreement. 

  

	 	(2)	Party A shall notify Party B in writing of its exercise of the pledge right hereunder; 

  

	 	(3)	If, during the term of the pledge hereunder,
                                 fails to pay all or part of the fee for the
technical services under the Services Agreement within a reasonable time limit as specified therein or Party B fails to perform its obligations under the Loan Agreement and the Management Agreement in the time limits as specified therein, Party A
shall have the priority to be compensated with the money into which the equity interest to be pledged hereunder will be converted or with the proceeds from the auction or sale of such equity interest in accordance with the provisions hereof.

  

	 	(4)	Party B shall not obstruct Party A from exercising the pledge right in accordance with the provisions of the preceding paragraph. Instead, Party B shall extend active cooperation
and assistance to Party A in exercising such right to ensure that it will succeed in realizing such right. 

  

	Article 6	Transfer 

  

	 	(1)	Without Party A’s previous consent, Party B shall have no right to transfer the rights or obligations hereunder to any third party or authorize any third party to assume the
rights or obligations hereunder on its behalf. 

  

	 	(2)	Party A shall have the right to transfer all or part of the rights and obligations under the Services Agreement to any third party (either a natural person or legal person) at any
time, in which case, such third party shall assume the rights and obligations hereunder as if it were a Party hereto. At Party A’s request, Party B shall execute an agreement and/or documents in connection with the aforesaid transfer.

  

	Article 7	Effectiveness and Term of this Agreement 

  

	 	(1)	This Agreement shall formally become effective after the Parties have affixed their signatures or seals hereto. The Parties agree that this Agreement will become effective as of
January 23, 2005. 

  

	 	(2)	 The term of the pledge of the equity interest hereunder shall be 10 years, starting from the effective date hereof. The term of this Agreement shall automatically
be 

  

					
		 	4	 	

	 	 
extended for 10 years upon expiration of such term, unless Party A notifies Party B in writing of its intention to terminate this Agreement in the three
months prior to the expiration of the term of this Agreement. 

  

	Article 8	Liability for Breach of Contract 

  

	 	(1)	If any of the following events occurs, such an event shall be deemed to be a breach of this Agreement: 

  

	 	a.	                     fails to pay in full the fee for the technology
services under the exclusive Services Agreement within a reasonable time limit as specified therein; 

  

	 	b.	Party B fails fully to perform its obligations under the Loan Agreement; 

  

	 	c.	Any of the representations or warranties Party B makes in Article 3 hereof proves to be inconsistent with any of the major facts or false and/or Party B is out of compliance with
any of the warranties it makes in Article 3 hereof; 

  

	 	d.	Party B is out of compliance with any of the undertakings it makes in Article 4 hereof; 

  

	 	e.	Party B is in violation of any of the provisions hereof; 

  

	 	f.	Without Party A’s previous written consent, Party B has relinquished or transferred the equity interest that has been pledged hereunder; 

  

	 	g.	In the case that Party B has got any loan from a third party or provided any guaranty for a third party, is required to pay any compensation to a third party, has made an
undertaking to a third party, or is under any other liability to a third party, 

  

	 	(i)	Party B is required to repay such loan, perform such guaranty or undertaking, pay such compensation, or discharge such liability ahead of time; or 

  

	 	(ii)	Party B is unable to discharge any of the aforesaid liabilities when it becomes due so that Party A believes that Party B’s capacity to perform this Agreement is adversely
affected as a result; 

  

	 	h.	Party B is unable to repay its general debts or any other debts; 

  

	 	i.	Any new laws or regulations have been promulgated that have rendered this Agreement illegal or Party B unable to continue to perform its obligations hereunder;

  

					
		 	5	 	

	 	j.	All the approvals, licenses, consents or authorizations of the government authorities that have made this Agreement performable and effective are revoked, terminated, have become
invalid, or have been substantially modified; 

  

	 	k.	Any adverse change has occurred to the assets under Party B’s ownership so that Party A believes that Party B’s capacity to perform this Agreement is adversely affected as
a result; 

  

	 	l.	The successor to, or manager of,
                                 can only perform part of the obligation to pay
the fee under the Services Agreement or refuses to perform such obligation; or 

  

	 	m.	There occurs any other event in which Party A cannot exercise the pledge right hereunder. 

  

	 	(2)	As soon as Party B is informed, or has become aware, that any of the events as described in the preceding paragraph is likely to occur, it shall notify Party A in writing of such
likelihood. Except as any of the breaches of contract as described in the preceding paragraph has been successfully remedied to Party A’s satisfaction, at the time of such occurrence or any time thereafter, Party A may serve a notice of such
breach on Party B and dispose of the equity interest to be pledged hereunder in accordance with the provisions of Article 5 hereof. 

  

	 	(3)	If either Party is in breach of any of the provisions hereof, the breaching party shall be liable to the non-breaching party for breach of contract and compensate the non-breaching
party for any losses it may suffer as a result of such breach. The non-breaching party may grant the breaching party a certain period of grace, in which the breaching party shall be required to remedy such breach. 

  

	 	(4)	If the breaching party fails to take any remedial measures within a reasonable period of grace, the non-breaching party shall have the right to terminate this Agreement and require
that the breaching party compensate it for any actual losses it may suffer as a result, including but not limited to all the reasonable expenses the non-breaching party may incur in connection with the execution and performance hereof (including
expenses and costs incurred in connection with the engagement of the various intermediary agencies), provided, however, that such compensation shall not exceed losses that, at the time of execution hereof, the breaching party foresaw or should have
reasonably foreseen its breach hereof might cause to the other Party. 

  

	Article 9	Governing Law and Settlement of Disputes 

  

	 	(1)	The validity, interpretation and performance hereof and settlement of disputes hereunder shall be governed by the laws of the People’s Republic of China.

  

					
		 	6	 	

	 	(2)	If any dispute arises out of the performance of this Agreement or in connection with this Agreement, the Parties shall settle such dispute through consultation. If such dispute
fails to be settled though consultation within 30 days, either Party may submit it to the China International Economic and Trade Arbitration Commission in Beijing for settlement by arbitration by three arbitrators appointed by this commission in
accordance with its rules. The award of the arbitration tribunal shall be final and binding on both of the Parties. 

  

	Article 10	Notices 

 Notices relating to this Agreement shall
be delivered to the following addresses by hand or sent by facsimile or registered mail except as any of such addresses is changed by a written notice. If sent by registered mail, a notice shall be deemed given on the date indicated on the return
receipt for registered mail; if delivered by hand or sent by facsimile, a notice shall be deemed given on the date it is received. If a notice is sent by facsimile to any of the following addresses, the original of such notice shall promptly be
delivered by hand or sent by registered mail to such notice: 
 If to Acorn Information Technology (Shanghai) Co., Ltd. 
 The address: Suite 669-05, Building No. 2, 351 Guo Shoujing Road, Zhangjiang Hi-Tech Park, Shanghai 
 If to Yang Dongjie 
 The address: Room 301,
Apt 6, Building 1, No.5 North Jia Heping Li, Chaoyang District, Beijing 
 If to He Chenghong 
 The address: Room 602, No. 41, Lane 2885, Qixin Road, Minhang District, Shanghai 
  

	Article 11	Miscellaneous 

  

	 	(1)	Within seven days after the effective date hereof, the Parties hereto shall carry out the procedure for registration of the pledge of the equity interest hereunder with the
authority in charge of industrial and commercial administration (if necessary). 

  

	 	(2)	Expenses that may be incurred in connection with the execution and performance hereof, including but not limited to legal fees and the fee for registration of the pledge of the
equity interest hereunder, shall be borne by Party B. 

  

	 	(3)	Neither Party shall unilaterally make any modification or amendment in this Agreement without mutual agreement of both parties. 

  

	 	(4)	This Agreement is executed in three originals, one of which shall be kept by each of the Parties hereto. The Parties hereto may execute duplicates of this Agreement separately when
necessary. 

  

	 	(5)	This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all oral or written understandings and agreements the
Parties reached with respect to such subject matter before this Agreement becomes effective. This Agreement shall not be amended without approval of Party A’s audit committee or any other independent agency under Party A’s board of
directors. 

  

					
		 	7	 	

 [This is the signature page of this Agreement, which does not contain any text of this Agreement] 
 Acorn Information Technology (Shanghai) Co., Ltd. 
 The legal representative: Yang Dongjie (Signature) 
 Yang Dongjie (Signature) 

He Chenghong (Signature) 
  

					
		 	8Form of Exclusive Technical Service Agreement

 EXHIBIT 10.18 
 Exclusive Technical Service Agreement 
 This Exclusive Technical Service Agreement (this
“Agreement”) is entered into on                          , 2006 in
             of China between 
 Party A 
 ________________________________________                                
                             
 Domicile:
                                        
                                        
                     
 Legal Representative:
                                        
                             
 Party B 
 Acorn Information Technology (Shanghai) Co., Ltd. 
 Domicile: Room 669-05 Building No. 2, 351 Guo Shoujing Road, Zhangjiang High-Tech Park, Shanghai 
 Legal Representative: Yang Dongjie 
 Either Party A or Party B will be referred to as
“a Party” individually herein and collectively they will be referred to as “the Parties”. 
 Whereas 
  

	(1)	Party A is a limited liability company organized and validly existing as a corporate legal person under Chinese law; 

  

	(2)	Party B is a wholly foreign owned enterprise organized and validly existing as a corporate legal person under Chinese law; and is mainly engaged in the business of developing
computer software, processing IT data and providing technical counseling services; 

  

	(3)	Party A agrees to accept from Party B, and Party B agrees to provide to Party A technical services according to the conditions set forth herein; 

 Therefore, in consideration of the foregoing premises and the mutual promises set forth below, the Parties agree as follows: 
  

					
		 	1	 	

	1.	Technical Services 

 Party B agrees to provide
exclusive technical services and support to Party A in accordance with the terms hereof, by using its own human resources and technical expertise. During the term of this Agreement, the scope of Party B’s technical services to Party A shall
include but not limited to the following: 
  

	(1)	provide advice and assistance to Party A with respect to the recruiting, transferring and managing of Party A’s employees; 

  

	(2)	train Party A’s employees; 

  

	(3)	provide computer hardware and software; 

  

	(4)	provide technical services in connection with the well-known brand names owned by Party B; 

  

	(5)	provide business counseling for Party A; and 

  

	(6)	provide other services at Party A’s request. 

  

	2.	Technical Service Fee 

  

	(1)	Without Party B’s prior written consent, Party A shall have no right to set off the technical service fees hereof against other amounts payable to Party A by Party B hereunder.

  

	(2)	The technical service fees hereunder shall be calculated and verified by the Parties on the basis of the actual technical services provided by Party B, and shall be the sum of the
following: 

  

	a.	the fee for using and servicing the computer hardware and software, which shall be a certain percentage of Party A’s annual sales revenue; 

  

	b.	the fee for managing the technical service in connection with the brand-names, which shall be a certain percentage of Party A’s annual sales revenue; 

 

	c.	the service charges for Party B’s technician employees’ services provided during their normal business hours, which shall be based on the actual time of service spent and
the specific services provided, and which, for a specific technician employee, shall be the product of his particular hourly rate multiplied by the time he actually spent; 

  

	d.	other fees, at rates agreed upon by the Parties in view of the actual circumstances; and 

  

	e.	if party A does not have any profit in a given year, Party B will not charge any service fees for the year. 

  

					
		 	2	 	

	(3)	The technical service fees hereunder shall be paid by Party A to Party B monthly (or quarterly / annually) in RMB. Party B may collect in advance annual service fees around mid-year
or at other times agreed upon by the Parties. 

  

	(4)	Party A shall be responsible for all the tax liabilities arising from the service fees hereunder. 

  

	(5)	To guarantee the payment of the technical service fees hereunder, Party A’s shareholders will pledge to Party B all the equity interests they hold in Party A. A separate equity
interest pledge agreement will be entered into among Party A’s shareholders and Party B. 

  

	3.	Obligations of Party A 

  

	(1)	To enable Party B to provide the technical services satisfactorily, Party A shall ensure that it will fully inform Party B of its business arrangements, and will provide to Party B
on a regular basis information regarding its business activities. 

  

	(2)	Party A shall timely provide to Party B its financial materials and information, including but not limited to Party A’s monthly, quarterly and annual financial and accounting
statements, budget arrangements and business plans; 

  

	(3)	Party A shall promptly report to Party B regarding Party A’s involvement in any pending or threatened litigation or arbitration, or regarding any pending or threatened
administrative penalty made by related government authority against it. 

  

	(4)	Party A shall provide to Party B other information at Party B’s reasonable request. 

  

	4.	Restrictive Provisions 

  

	    	During the term of this Agreement, without Party B’s prior written consent, 

  

	(1)	Party A shall not accept any third party’s any technical services identical or similar to those hereunder; 

  

	(2)	Party A shall not transfer, sell, lease, mortgage, pledge or otherwise dispose of its assets (including tangible and intangible assets existing or to be acquired) unless necessary
for its normal business operations. 

  

	(3)	Party A shall not dissolve or liquidate itself voluntarily, or consolidate with any third party; 

  

	(4)	Party A shall not provide guarantee for the debts of any third party; 

  

	(5)	Party A shall not distribute dividends to its shareholders or pay back the investments, nor shall it acquire directly or indirectly any shares outstanding or to be issued by back
purchase, reclaiming, purchase, or otherwise. 

  

					
		 	3	 	

	(6)	Party A shall not have any transactions with any of its affiliates, no matter whether such transactions are within the scope of its normal business operations;

  

	(7)	Party A shall not repay any outstanding debts by advance payment, selective payment or by acquiring asset trust, nor shall it amend or permit amendment of any terms of agreements
relating to its debts, or amend its articles of association or business license; 

  

	(8)	Party A shall not engage in businesses that beyond its business scope; 

  

	(9)	Party A shall not assign part or all of its operation and management rights to any party other than Party B or Party B’s designated affiliates, or 

  

	(10)	Party A shall not invest in any other entity or waive its right against any third party. 

  

	5.	Provisions of Confidentiality 

  

	(1)	Both Parties shall keep in strict confidentiality regarding the negotiation, execution and the contents of this Agreement, and shall not disclose any of the above to any third
party, unless required by compulsory provisions of the relevant laws, regulations or government authorities; 

  

	(2)	Each Party shall keep in strict confidentiality any trade secret of the other Party obtained in the course of the negotiation, execution and performance of this Agreement, and shall
not disclose any of the above to any third party, unless required by compulsory provisions of the relevant laws, regulations or government authorities; 

  

	(3)	The Parties’ obligation of confidentiality with respect to the above shall survive the termination of this Agreement. 

  

	6.	Effect and Term of this Agreement 

  

	(1)	This Agreement shall be concluded after the signatures or seals of the Parties are affixed to it. The Parties agree that this Agreement will become effective as of January 23,
2005. 

  

	(2)	The term of this Agreement shall be ten years starting from the effective date. Unless Party B terminates this Agreement by written notice three months before the expiration of the
term, this Agreement shall automatically be renewed for a term of another ten years. 

  

	7.	Liabilities for Breach 

  

	(1)	In the event of any breach by either Party, the breaching Party shall be liable to the non-breaching Party for its breach, and shall indemnify the latter for the losses caused by
such breach. The non-breaching Party may give the breaching Party reasonable opportunity to cure. 

  

					
		 	4	 	

	(2)	If the breaching Party fails to cure within reasonable time, the non-breaching Party shall have the right to terminate this Agreement, and seek damages from the breaching Party for
all its actual losses, including but not limited to all reasonable expenses incurred by such non-breaching Party in executing and performing this Agreement (including fees and charges of agents, etc.). The damages shall not be more than the losses
which, at the time of execution of this Agreement, the breaching Party foresaw or should have foreseen would result from its breach. 

  

	8.	Notice 

 Unless there is a written notice regarding
change of address, all notices relating to this Agreement shall be addressed in accordance with the following and delivered by personal delivery, fax or registered mail. If notice is given through registered mail, the date on the confirmation slip
shall be deemed the date of delivery. If notice is given by personal delivery or via fax, the date of actual receipt shall be deemed the date of delivery. In the case of delivery via fax, the original copy of the notice shall be sent to the
following relevant address by personal delivery or by registered mail. 
 Party A: 
 Beijing Acorn Trade and Development 
 Address: 1st Floor East Wing, 115 Fucheng Road, Jindu Office Building, Haidian
District, Beijing 
 Party B 
 Acorn Information Technology (Shanghai) Co. Ltd. 
 Address: Room 669-05 Building
No. 2, 351 Guo Shoujing Road, Zhangjiang High-Tech Park, Shanghai 
  

	9.	Governing Law and Dispute Resolution 

  

	(1)	Matters regarding the effectiveness, interpretation and performance of this Agreement, and resolution of disputes arising hereunder, shall be governed by the law of the
People’s Republic of China. 

  

	(2)	Disputes arising out of or in connection with this Agreement shall first be resolved through consultation between the Parties. If a dispute can not be resolved within 30 days after
consultation begins, either Party may bring the dispute to the China International Economic and Trade Arbitration Commission in Beijing for arbitration under the auspices of three arbitrators designated in accordance with its rules. The arbitration
award shall be final and binding upon the Parties. 

  

					
		 	5	 	

	10.	Miscellaneous Provisions 

  

	(1)	Without the prior written consent of the other Party, no Party shall assign any part of its rights and obligations hereunder to a third party, except that Party B may transfer
rights and obligations hereunder to any of its affiliates. 

  

	(2)	The invalidity or unenforceability of any provision or part of this Agreement shall not affect the validity or enforceability of any other provision hereof.

  

	(3)	Any successor to a Party hereto shall assume the rights and obligations of such Party as if it were a Party to this Agreement. 

  

	(4)	This Agreement is executed in two original copies, with one for each of the Parties. The Parties may execute more counterparts if necessary. 

  

	(5)	This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all oral and written understandings and agreements
between the Parties with respect to the subject matter prior to the effectiveness of this Agreement. This Agreement shall not be amended without the consent of Party B’s auditing committee or other independent institution of its board of
directors. 

 [The remainder of this page is left intentionally blank] 
  

					
		 	6	 	

 (This is the signature page, which does not contain any part of the text of this
Agreement) 
 Party A 
 ________________________________________                                
                             
 Legal Representative:
                                        
                             
 Party B 
 Acorn Information Technology (Shanghai) Co., Ltd. (seal) 
 Legal Representative: Yang Dongjie (signature) 
  

					
		 	7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]